SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 4135

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 22, 2025

      The Senate Economic Growth Committee reports favorably and with committee amendments Senate Bill No. 4135.

      As amended and reported, this bill modifies certain provisions of the “New Jersey Aspire Program” (Aspire Program) related to the construction of institutional projects.

      Under the bill, the term “institutional project” is defined as a redevelopment project that is developed by, or in affiliation with, a public or private institution of higher education, and for which at least 51 percent of the square footage of the project is dedicated for the use of qualified research and development.  “Qualified research and development” is defined as research and development activities that are undertaken within a priority industry, including, but not limited to, technology, artificial intelligence, software development, financial services, financial services technology, film and digital media, advanced manufacturing, gaming, pharmaceuticals, biotechnology, transportation, logistics, and renewable energy.

      Specifically, the bill requires the calculation of the “project cost” of an institutional project to include the construction and completion of:  research workspaces; meeting, classroom, dining, and dormitory spaces; and common areas, including, but not limited to, hallways, utility rooms, storage areas, and parking components.  The bill also provides that an institutional project is eligible for an incentive award equal to 80 percent of project costs, which incentive award is limited to a maximum value of $120 million.

      To qualify for an incentive award under the Aspire Program, the bill provides that the developer of an institutional project is required to contribute capital of at least $30 million, regardless of the overall cost of the project, except when the project is located in a government-restricted municipality.  Under current law, the developer of a redevelopment project is required to contribute capital of at least 20 percent of the total project costs, except that if the project is located in a government-restricted municipality, the developer is required to contribute capital of at least 10 percent of the total project cost.

      Additionally, the bill provides that an institutional project is not subject to a net benefit analysis that is required for certain other redevelopment projects.  Under current law, an exemption from the net benefit analysis is provided for investments in residential projects, food delivery sources, and health care or health services centers.

      The bill also provides similar changes for institutional projects that qualify as transformative projects under the Aspire Program.  Specifically, the bill provides that these projects are eligible for an incentive award equal to 80 percent of project costs, up to $400 million or the amount of the project financing gap.  The bill also exempts these projects from the net benefit analysis requirement.

COMMITTEE AMENDMENTS:

      The committee amendments provide technical changes to the bill to update the underlying statutes in light of a recent enactment of law.