LHS Redevelopment Project

The former Lambertville High School site is located on Connaught Hill. The site can be accessed from Grant Avenue and from Washington Street.

The LHSRA is comprised of Block 1073, Lots 1, 3, 5, 6, 7, 8, 9, 10, 11, 32, 33 and 33.01; and
Block 1090, Lots 4 and 5; and Block 1091, Lots 1 and 1.01.

The Lambertville High School Redevelopment project is the result of the City’s requirement to accommodate new affordable housing, pursuant to New Jersey state law including the Mount Laurel doctrine and the Fair Housing Act of 1985.

First, how does the redevelopment process work?

1. Preliminary Investigation
   The municipality considers properties that are not thriving in their current use. At the suggestion of the municipality, the Planning Board conducts a study to determine if a site meets the criteria for redevelopment.

2. Public Hearing
   A public hearing is held to gather input and feedback on the preliminary investigation.

3. Recommendation
   The Planning Board makes a recommendation to the Governing Body on whether to designate the site as an AINR (area in need of redevelopment).

4. Designation
   The Governing Body then votes to accept or reject the recommendation from the Planning Board. Accepting the recommendation designates the site officially as an AINR.

5. Redevelopment Plan
   A detailed plan is developed outlining the goals, objectives, and proposed improvements specific to that AINR site.

6. Implementation
   The municipality may acquire properties, make infrastructure upgrades, and work with developers to implement the plan.

Redevelopment Glossary 

AINR (AREA IN NEED OF REDEVELOPMENT)
An area in need of redevelopment (AINR) is a designation given to a specific area within a municipality that meets certain criteria outlined in the Local Redevelopment and Housing Law (LRHL). This designation allows the municipality to implement redevelopment plans and potentially utilize specific financial incentives and tools to revitalize the area.

CONDITIONAL REDEVELOPER
A conditional redeveloper is a developer that a municipality designates to undertake a redevelopment project within an area in need of redevelopment (AINR).  The City may seek developers through requests for qualifications or proposals (RFQ or RFP process). Proposals may also be presented to the municipality without having been requested.

The designation as conditional redeveloper, done through resolution, is a show of good faith by the municipality which indicates to the developer that they will work on the project, contingent on negotiating a redevelopment agreement. The agreement outlines the project details, responsibilities, timeline, and potential financial terms.

REDEVELOPMENT PLAN
A redevelopment plan is drafted and adopted by the Governing Body, with the help of City professionals and often with the involvement of the Planning Board, to establish development standards for the site designated as an AINR.

REDEVELOPMENT AGREEMENT
In New Jersey, a municipal redevelopment agreement outlines the terms between a municipality and a redeveloper for revitalizing blighted or underutilized areas. These agreements are crucial for implementing redevelopment plans, specifying the project scope, financial arrangements, and determining the responsibilities of each party. Redevelopment agreements are governed by the Local Redevelopment and Housing Law (LRHL) and other relevant statutes.

Redevelopment agreements serve to define the following:

• Project Scope
  The agreement specifies the project's boundaries, permitted uses, and required improvements.

• Financial Arrangements
  It details the financial obligations of both parties, including funding sources, tax abatements, and potential payments.

• Responsibilities
  The agreement outlines each party's responsibilities for construction, demolition, environmental remediation, and other aspects of the project.

• Approvals and Permits
  It specifies the necessary governmental approvals, permits, and licenses required for the project.

• Monitoring and Oversight
  The agreement will specify benchmarks and milestones to monitor the project's progress and ensure compliance with the agreement.

• Duration and Termination
  The agreement specifies the project's timeline and conditions for termination.

Redevelopment plans and agreements are subject to public review and input to ensure transparency and community engagement.

MASTER PLAN
A municipality's Master Plan is a comprehensive document guiding future development, growth, and conservation. It's a long-term vision for the community, developed with public input and thorough analysis. The plan addresses land use, housing, circulation, and other essential elements to promote the general welfare of the municipality. It's a blueprint for the community, guiding decisions on where to encourage development, preserve open space, and protect resources.

In essence, the Master Plan serves as a roadmap for a municipality, guiding decisions on land use, infrastructure, and community development to achieve a desired future for the community.

New Jersey law requires municipalities to reexamine their Master Plans every ten years. This process reviews the plan's effectiveness, identifies changes in the community, and updates the plan accordingly. The Planning Board is responsible for adopting and amending the Master Plan, but community involvement is crucial. Municipalities provide various ways for residents to provide input and feedback.

PILOT (PAYMENT IN LIEU OF TAXES)
A PILOT agreement (Payment in Lieu of Taxes) is a property tax abatement initiative designed to encourage redevelopment projects within municipalities. These agreements allow developers to make negotiated payments, often lower than standard property tax rates, to the municipality, rather than paying conventional property taxes. This provides a financial incentive for developers to undertake projects that might not otherwise be financially feasible, particularly in areas designated for redevelopment or rehabilitation.

How is a PILOT structured?
If a PILOT will be offered for a project, it is outlined in the redevelopment agreement with the conditional redeveloper. Instead of quarterly property tax payments, the redeveloper agrees to pay a quarterly PILOT fee for a period that could extend up to 30 years. PILOTs are typically based on a percentage of the project's annual gross revenue (often between 10% and 15%) or a percentage of the total project costs. PILOT payments are distributed to the municipality (95%) and the county (5%).

The agreement may include provisions to prohibit excessive profits for the developer, and annual audits are typically required to ensure compliance.

Benefits of a PILOT agreement
For municipalities, PILOTs offer an opportunity for increased revenue from underutilized or vacant land that would otherwise not exist. Generated revenue is may be redirected into infrastructure, schools, community services. The stimulation of economic growth and revitalization of AINRs contributes to increased property values for existing residents and the potential for reduced property tax rates due to increased municipal revenue.

For developers, PILOT agreements significantly reduce tax liabilities, especially during the initial phases of development. This offers a developer the ability to undertake projects that would be otherwise financially unviable under conventional taxation. Since PILOT payments are predetermined, they can aid a developer in securing financing over a long-term period.