S4747

An Act extending certain provisions of the Casino Reinvestment Development Authority Urban Revitalization Program and amending P.L.2001, c.221.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 7 of P.L.2001, c.221 (C.5:12-173.15) is amended to read as follows:

7. a. There is created a dedicated, nonlapsing project fund to be held by the State Treasurer, which shall be the repository for all moneys required to be deposited therein under section 5 of P.L.2001, c.221 (C.5:12-173.13) and any moneys appropriated or otherwise made available to the project fund.

b. All moneys deposited in the project fund shall be held and disbursed, subject to the requirements of section 11 of P.L.2001, c.221 (C.5:12-173.19), in the form of district project grants as follows:

(1) an amount from the project fund equivalent to the total revenues received pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from the taxation of construction materials used for building a district project approved by the authority pursuant to a project grant agreement, or for building a district project sponsored by the authority, shall be rebated in the form of a one-time grant to the authority for disbursement to the casino licensee with an approved district project or to the authority for an authority sponsored district project;

(2) an amount from the project fund equivalent to the total revenues received pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) from the taxation of retail sales of tangible property and services originating from and delivered from business locations in a district project approved by the authority pursuant to a project grant agreement or from business locations in a district project sponsored by the authority, shall be rebated in the form of annual grants (a) to the authority for disbursement to the casino licensee with an approved district project, or to the authority for an authority sponsored district project, with each annual grant not to exceed $2.5 million per district project and payable annually for [20] 40 years from the date of completion of the district project, or until such time as the combined total of grants disbursed under this section and under section 8 of P.L.2001, c.221 (C.5:12-173.16) equals no more than five times the approved cost of the district project, as determined by the authority, whichever is earlier, and (b) from the amounts remaining after such disbursement in (a), to the authority for its purposes pursuant to law, as approved by the membership of the authority, with each annual grant not to exceed $2.5 million per district project and payable annually for [20] 40 years from the date of completion of the district project;

(3) the balance of the revenues in the project fund shall be deposited in the General Fund if the authority, in consultation with the State Treasurer, determines that the revenues are no longer needed for the purposes of the project fund or for the uses prescribed in P.L.2001, c.221 (C.5:12-173.9 et al.)[.] ; and

(4) a district project approved pursuant to section 4 of P.L.2001, c.221 (C.5:12-173.12), for which the district project’s eligibility to receive project grants from the project fund has lapsed or expired prior to the effective date of P.L. , c. (pending before the Legislature as this bill), shall be eligible to receive project grants from the project fund for an additional 20 years following the effective date of P.L. , c. (pending before the Legislature as this bill), or until such time as the combined total of grants disbursed under this section and under section 8 of P.L.2001, c.221 (C.5:12-173.16) equals no more than five times the approved cost of the district project, as determined by the authority, whichever is earlier.

c. The State Treasurer may invest and reinvest any moneys in the project fund, or any portion thereof, in legal obligations of the United States or of the State or any political subdivision thereof. Any income from, interest on, or increment to moneys so invested or reinvested shall be included in the project fund.

(cf: P.L.2004, c.129, s.8)

2. Section 8 of P.L.2001, c.221 (C.5:12-173.16) is amended to read as follows:

8. a. There is created a dedicated, nonlapsing room fund to be held by the State Treasurer, which shall be the repository for all moneys required to be deposited therein under section 6 of P.L.2001, c.221 (C.5:12-173.14) and any moneys appropriated or otherwise made available to the room fund.

b. All moneys deposited in the room fund shall be held and disbursed, subject to the requirements of section 11 of P.L.2001, c.221 (C.5:12-173.19), in the form of district projects grants as follows:

(1) an amount from the room fund equivalent to the incremental luxury tax for a district project approved by the authority pursuant to a project grant agreement or for a district project sponsored by the authority, shall be rebated in the form of annual grants from the room fund to the authority for disbursement to the casino licensee with an approved district project, or to the authority for an authority sponsored district project, and shall be payable annually for [20] 40 years from the date of completion of the district project, or until such time as the combined total of grants disbursed under this section and under section 7 of P.L.2001, c.221 (C.5:12-173.15) equals no more than five times the approved cost of the district project, as determined by the authority, whichever is earlier;

(2) the balance of the revenues in the room fund shall be deposited in the special fund established pursuant to section 3 of P.L.1991, c.376 (C.40:48-8.47) if the authority, in consultation with the State Treasurer, determines that the revenues are no longer needed for the purposes of the room fund or for the uses prescribed in P.L.2001, c.221 (C.5:12-173.9 et al.)[.] ; and

(4) a district project approved pursuant to section 4 of P.L.2001, c.221 (C.5:12-173.12), for which the district project’s eligibility to receive project grants from the room fund has lapsed or expired prior to the effective date of P.L. , c. (pending before the Legislature as this bill), shall be eligible to receive project grants from the room fund for an additional 20 years following the effective date of P.L. , c. (pending before the Legislature as this bill), or until such time as the combined total of grants disbursed under this section and under section 7 of P.L.2001, c.221 (C.5:12-173.15) equals no more than five times the approved cost of the district project, as determined by the authority, whichever is earlier.

c. The State Treasurer may invest and reinvest any moneys in the room fund, or any portion thereof, in legal obligations of the United States or of the State or any political subdivision thereof. Any income from, interest on, or increment to moneys so invested or reinvested shall be included in the room fund.

(cf: P.L.2004, c.129, s.9)

3. This act shall take effect immediately.

STATEMENT

This bill extends certain provisions of the Casino Reinvestment Development Authority Urban Revitalization Program (incentive program) administered by the Casino Reinvestment Development Authority (CRDA).

Established in 2001, the incentive program provides for grants to encourage the construction of new entertainment and retail venues in Atlantic City. Under the program, the CRDA is permitted to designate up to 11 entertainment-retail districts, each of which includes at least 150,000 square feet of entertainment, retail, dining, non-casino hotel space, or residential unit space. Upon entering into a project grant agreement with the CRDA, certain developers, including casino licensees, are permitted to develop district projects within each entertainment-retail district and receive incentives for the development of these projects. However, the CRDA is also permitted to develop district projects within an entertainment-retail district and receive incentives associated with these projects. As of April 10, 2025, there are three entertainment-retail districts available.

Under current law, the incentives provided for a developer of a district project include: (1) a grant for the amount of sales taxes collected by the State for the construction materials used to build the project; (2) an annual grant, up to $2.5 million per year and up to 20 years in duration, based upon the amount of sales taxes generated on retail sales in the entertainment-retail district; and (3) an annual grant, up to 20 years in duration, based upon the amounts of the incremental luxury tax generated from the taxation of retail sales originating at the district project, as approved by the CRDA.

Accordingly, current law limits the period of time in which a developer of a district project may receive annual incentive grants to 20 years following the date of completion of the project or until such time as the combined total annual incentive grants received by the developer from the project and room funds equals the approved cost of the district project, whichever is earlier. This bill would extend the duration of this authorization for an additional 20 years, allowing the developer of a district project to receive annual incentive grants for a maximum of 40 years following the completion of the project. Further, this bill would increase the limit on the combined total annual incentive grants a developer may receive during this period to an amount equal to five times the approved cost of the district project.

This bill would also renew this authorization for the developers of district projects that have been completed at least 20 years prior to the effective date of this bill, or are otherwise no longer eligible to receive annual incentive grants from the project and room funds. Such district projects would be permitted to receive annual incentive grants for an additional 20 years following the effective date of this bill, or until the combined total of all annual incentive grants received by the developer for a district project equals five times the approved cost of the district project, whichever is earlier.