NOTICE IS HEREBY GIVEN, that the following Ordinance was introduced and passed upon
first reading at a regular meeting of the Board of Commissioners, Township of Nutley, Essex
County, State of New Jersey on the 19 th day of February 19, 2019 and that said Ordinance will
be taken up for further consideration for final passage at a regular meeting of the Board of
Commissioners to be held on the 5 th day of March 2019 at 7:00 P.M., or as soon thereafter as
said matter can be reached, at which time and place all persons who may be interested therein
will be given an opportunity to be heard concerning same.
“ORDINANCE OF THE TOWNSHIP OF NUTLEY AUTHORIZING THE EXECUTION
OF A FINANCIAL AGREEMENT WITH PB – 100 METRO URBAN RENEWAL, LLC
AND GRANTING A TAX EXEMPTION”
Eleni Pettas, RMC
ORDINANCE NO. 3417
ORDINANCE OF THE TOWNSHIP OF NUTLEY AUTHORIZING THE EXECUTION
OF A FINANCIAL AGREEMENT WITH PB – 200 METRO URBAN RENEWAL, LLC
AND GRANTING A TAX EXEMPTION
WHEREAS, the New Jersey Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the
“Redevelopment Law”) authorizes municipalities to determine whether certain parcels of land in the municipality
constitute areas in need of redevelopment; and
WHEREAS, the Redevelopment Law confers certain contract, planning and financial powers upon a
redevelopment entity, as defined in Section 3 of the Redevelopment Law, in order to implement redevelopment plans
adopted pursuant thereto; and
WHEREAS, the Township of Nutley (the “Township”), in the County of Essex, State of New Jersey, has
elected to exercise these redevelopment entity powers directly, as permitted by Section 4 of the Redevelopment Law;
WHEREAS, on August 7, 2018, after conducting the requisite hearings therefor, the Board of
Commissioners, via Ordinance No. 3392, adopted the plan entitled “Nutley Phase IIA Redevelopment Plan” (the
“Phase IIA Redevelopment Plan”) for an approximately 11.88 acre portion of the Property shown and described as
Lot V, Lot W, Lot X and Lot Y in the Phase IIA Redevelopment Plan created from a portion of Block 201, Lot 1,
and Block 300, Lots 1 and 20 (to be consolidated and subdivided into up to four (4) new tax lots)(the “Phase IIA
Premises”) in accordance with the provisions of the Redevelopment Law; and
WHEREAS, pursuant to the Redevelopment Law, including Section 8 thereof (N.J.S.A. 40A:12A-8), a
municipality is permitted to contract with a redeveloper to undertake redevelopment projects pursuant to a
redevelopment plan within an area in need of redevelopment, as all such terms are defined in the Redevelopment
WHEREAS, the Township intends to adopt (or has adopted) a resolution authorizing the execution of a
redevelopment agreement (as the same may be amended and supplemented in accordance with its terms (the “Phase
IIA Redevelopment Agreement”) with PB – 200 Metro Urban Renewal, LLC (the “Entity”) or its affiliate in
connection with the redevelopment of the Phase IIA Premises; and
WHEREAS, the Entity intends to implement on a portion of the Phase IIA Premises the renovation and
improvement of Building 76 (now known as 200 Metro Boulevard, which is a 15-story building containing
approximately 306,471 gross square feet of building area) and related site improvements located on Lot W within the
Phase IIA Premises as illustrated in the Phase IIA Redevelopment Plan (the “Building 200 Project”); and
WHEREAS, as of the date hereof, the Entity or its affiliate has received preliminary and final major
subdivision approval pursuant to Nutley Township Planning Board Resolution No. PB-18-00003 adopted on
September 19, 2018 and preliminary site plan approval pursuant to Nutley Township Planning Board Resolution No.
PB-18-00003 adopted on September 19, 2018, concerning, inter alia, the Building 200 Project; and
WHEREAS, the Entity has been qualified by the State of New Jersey to do business as an urban renewal
entity under the provisions of the New Jersey Long Term Tax Exemption Law (the “LTTE Law”), and was created
for the redevelopment, operation and maintenance of the Building 200 Project; and
WHEREAS, in order to improve the feasibility of the renovation, operation and maintenance of the Building
200 Project, the Township has considered certain proposed terms concerning a long term tax exemption and
financial agreement, dated February 4, 2019, with respect to the Building 200 Project pursuant to the LTTE Law (the
“Proposed PILOT Terms”); and
WHEREAS, the Entity has represented to the Township that the Building 200 Project would not be feasible
in its intended scope but for the provision of financial assistance by the Township; and
WHEREAS, the Board of Commissioners has reviewed the Proposed PILOT Terms and wishes to approve
the Proposed PILOT Terms to be memorialized in a financial agreement between the Township and the Entity,
subject to the designation of the Entity (or its affiliate) as redeveloper and the execution of a Phase IIA
Redevelopment Agreement between Township and the Entity (or its affiliate); and
WHEREAS, the Township hereby finds that the relevant benefits of the Building 200 Project to the
redevelopment of the Phase IIA Redevelopment Area (as defined in the Phase IIA Redevelopment Plan) outweigh
the costs, if any, associated with the tax exemption, and in fact increase Township revenues over current levels by
granting the long term tax exemption for the Building 200 Project, which relevant benefits are further described in
the Proposed PILOT Terms and the financial agreement; and
WHEREAS, the Township hereby determines that the assistance provided to the Building 200 Project
pursuant to the Proposed PILOT Terms to be memorialized in a financial agreement will be a significant inducement
for the Entity to proceed with the Building 200 Project and that based on information set forth in the Proposed
PILOT Terms, the Building 200 Project would not be feasible without such assistance.
NOW, THEREFORE, the BOARD OF COMMISSIONERS OF THE TOWNSHIP OF NUTLEY, IN
THE COUNTY OF ESSEX, STATE OF NEW JERSEY, DO ORDAIN and enact as follows:
The aforementioned recitals are incorporated herein as though fully set forth at length.
II. APPROVAL OF EXEMPTION FROM TAXATION
An exemption from taxation as set forth in the Proposed PILOT Terms is hereby approved with respect to the
Building 200 Project in accordance with the terms set forth in the Proposed PILOT Terms to be memorialized in a
financial agreement between the Township and the Entity; provided that in no event shall the term of the financial
agreement exceed the term permitted by the LTTE Law and only so long as the Entity remains subject to and in
compliance with the financial agreement and the LTTE Law and any other agreement related to the Building 200
Project and/or the Phase IIA Premises.
III. EXECUTION OF FINANCIAL AGREEMENT AUTHORIZED
(a) The Mayor is hereby authorized to execute a financial agreement between the Township and the Entity,
incorporating the Proposed PILOT Terms, subject to additions, deletions, modifications, or revisions deemed
necessary and appropriate in consultation with counsel.
(b) The Clerk of the Township is hereby authorized, upon the execution of the financial agreement in
accordance with the terms of Section II (a) hereof, to attest to the signature of the Mayor upon such document and is
hereby further authorized to affix the corporate seal of the Township upon such document.
(c) The Township Clerk shall file certified copies of this ordinance and the financial agreement with the Tax
Assessor of the Township and the Director of the Division of Local Government Services within the New Jersey
Department of Community Affairs in accordance with Section 12 of the LTTE Law.
IV. ENTITY OBLIGATIONS
(a) The Building 200 Project shall conform with all Federal and State laws and ordinances and regulations of
the Township relating to its construction and use.
(b) The Entity shall, in the operation of the Building 200 Project, comply and require compliance with all
laws so that no person because of race, religious principles, color, national origin or ancestry, will be subject to
(c) The Entity shall, from the time that the Annual Service Charge becomes effective, pay the Annual
Service Charge as set forth in the financial agreement.
(d) The Entity shall complete the Building 200 Project within the timeframes set forth in the Phase IIA
If any part of this Ordinance shall be deemed invalid, such parts shall be severed and the invalidity thereby
shall not affect the remaining parts of this Ordinance.
IV. ACTION REGARDING FINANCIAL AGREEMENT
The Mayor is hereby authorized to determine all matters and terms in connection with the financial
agreement, all in consultation with the counsel to the Township, and the manual or facsimile signature of the Mayor
upon any documents shall be conclusive as to all such determinations. The Mayor, the Township Clerk and any
other Township official, officer or professional, including but not limited to, redevelopment counsel, the financial
advisor and the auditor to the Township, are each hereby authorized to execute and deliver such documents as are
necessary to facilitate the transactions contemplated hereby, and to take such actions or refrain from such actions as
are necessary to facilitate the transactions contemplated hereby, in consultation with, as applicable, redevelopment
counsel, bond counsel, the financial advisor and the auditor to the Township, and any and all actions taken
heretofore with respect to the transactions contemplated hereby are hereby ratified and confirmed.
V. AVAILABILITY OF THE ORDINANCE
A copy of this Ordinance shall be available for public inspection at the offices of the Township.
VI. EFFECTIVE DATE
This Ordinance shall take effect according to law.