NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY

Transcription

1 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY URBAN TRANSIT HUB TAX CREDIT RESIDENTIAL COMPETITIVE SOLICITATION SOLICITATION OPEN: October 25, 2012 Through December 20, :00 pm EST October 23,

2 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY URBAN TRANSIT HUB TAX CREDIT RESIDENTIAL COMPETITIVE SOLICITATION Table of Contents 1. Program Description About NJEDA Projected Milestone Dates Mandatory Pre-Submission Conference Question Period / Q&A Document / Addenda Contact with NJEDA and State of New Jersey Program Eligibility Eligibility Requirements Capital Investment Requirements Sources of Information About UTHTC Submission Package Submission Requirements Confidentiality Program Fees Non-Refundable Fees Third Party Analysis Due Date and Submission Package Delivery Scoring Criteria Selection Process Appeal Process Changes to Proposed Project News Releases and Advertising News Releases Advertising List of Appendices

3 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY URBAN TRANSIT HUB TAX CREDIT RESIDENTIAL COMPETITIVE SOLICITATION 1. PROGRAM DESCRIPTION: The New Jersey Economic Development Authority ( NJEDA or Authority ) is issuing this Competitive Solicitation ( Residential Hub Solicitation ) for up to $100 million of tax credits under the residential component of the ( UTHTC ) Program. The Residential Hub Solicitation is designed to support residential projects, and residential projects with mixed use components, in the eligible cities of Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson, and Trenton. Tax credits are available for up to 35% of the total qualified capital investment per project with a maximum of $33 million, whichever is less. These tax credits may be claimed over a 10-year period in the amount of 10% of the full tax credit amount per year. No more than 2 projects per municipality will be awarded tax credits under this Solicitation. All awards are subject to availability of funding. Any UTHTCs not awarded under this Solicitation will be reallocated to projects with a qualified business facility as this term is defined in the UTHTC Act (L. 2007, c.346, et seq.) and Regulations (N.J.A.C. 19:31-9.1, et seq.). 2. ABOUT NJEDA: NJEDA is an independent, self-supporting State entity dedicated to broadening New Jersey s economic base by building vibrant, diverse communities, creating and maintaining jobs, and providing businesses and nonprofits with the necessary financial and technical support to grow and succeed. It serves as the State s financing and economic development agency committed to serving as New Jersey s bank for business by offering financing assistance, access to small business services and real estate development assistance. In 2011, NJEDA finalized over $828 million in financing assistance, business incentives and tax credits to support New Jersey-based businesses, nonprofit organizations and municipalities. These results brought NJEDA s cumulative financing assistance totals to more than $21.6 billion since its formation in Since inception, this funding has leveraged $47.8 billion in total public/private investment, assisted more than 11,080 projects and spurred the creation of an estimated 322,880 new permanent jobs and 332,760 construction jobs. The New Jersey Economic Development Authority has developed approximately 9.25 million square feet of new and improved space, valued at more than $1.3 billion dollars. 3

4 3. PROJECTED MILESTONE DATES: All times are provided in the prevailing local time of Eastern Standard Time (EST). Mandatory Pre-Submission Conference Friday, November 16, 2012 at 2:00 PM (See section 4. Mandatory Pre-Submission Conference for further information.) Q & A Period Ends Thursday, December 13, 2012 at 5:00 PM (See section 5. Question Period / Q&A Document / Addenda for further information.) DUE DATE Submission Packages are due Thursday, December 20, 2012, at or before 3:00 PM Respondents can submit their Submission Package before the Due Date, however, it will not be opened or reviewed until after the Due Date. (See sections, 9. Submission Package, and 11. Due Date and Submission Package Delivery, below for further information.) Estimated Recommendation for Awards April 9, 2013 NJEDA Board Meeting Expiration of Gubernatorial Veto Period: on or about April 25, (Any action taken by the NJEDA Board cannot be exercised until the expiration of the Gubernatorial Veto Period, provided that such action is not vetoed by the Governor.) Appeal Period: See section 14. Appeal Process for further information. NOTE: The dates following the DUE DATE are provided to interested Respondents for planning purposes only. These are estimated timeline dates and do not represent firm commitment dates by which the Authority must take action. 4. MANDATORY PRE-SUBMISSION CONFERENCE: A MANDATORY Pre-Submission Conference will be held on Friday, November 16, 2012 at 2:00 PM at the Authority s offices, located at 36 West State Street, Trenton, NJ. At least one representative of the Respondent must attend in person. No teleconference attendance will be permitted. Respondents are strongly encouraged to notify the Authority of their intention to attend the Pre-Submission Conference via to the Authority s Solicitation address, UTHTC-Res@njeda.com. Respondents should note the number of team members they expect to attend. Recognition of attendance as evidenced by the Respondent representative s entry of their name, signature, and Respondent affiliation on the Sign-In Sheet at the Conference is required in order for the Respondent to be eligible to receive an Award under this Solicitation. 5. QUESTION PERIOD / Q&A DOCUMENT / ADDENDA: Questions concerning this Solicitation may be submitted in writing via , to the following box, UTHTC-Res@njeda.com, and must be received on or before Thursday, December 13, 2012 at 5:00 PM (EST). Phone calls / faxes will not be accepted. The period of time from when this Solicitation is issued through Thursday, December 13, 2012 at 5:00 PM (EST) is considered the Question Period. 4

5 All questions, timely submitted within the Question Period, without attribution to the inquiring party, and answers will be posted on the Authority s website at within the program Questions and Answers ( Q&A ) Document. In addition to responses to questions posted to the Q&A Document, NJEDA may post one or more Addenda to the Solicitation. There are no designated dates for release of addenda or posting of updates to the Q&A Document on the Authority s website. Interested parties should check the Authority s website frequently, from the date and time the Solicitation is issued, up to and including the Due Date of the Solicitation. It is the sole responsibility of the Respondents to be knowledgeable of, and acknowledge their review of the final Q&A Document and all addenda related to this Solicitation. Acknowledgements must be made in the following 2 forms: 1) the Acknowledgment of Review of Q&A Document format provided in Appendix A, and 2) the Acknowledgment of Receipt of Addendum form(s), to be provided with each addendum, if any are issued. All Acknowledgments must be filled out, signed, and submitted with the Submission Package. 6. CONTACT WITH NJEDA AND STATE OF NEW JERSEY: Any Respondent attempting to contact government officials (elected or appointed), the Authority s Board members or staff, in an effort to influence the selection process, shall immediately have its Submission Package summarily rejected and disqualified. References in the NJEDA On-Line Application to suggestions that Respondents contact NJEDA staff regarding any questions must be disregarded with respect to this Solicitation. The only form of acceptable communication is via questions submitted through the mailbox UTHTC-Res@njeda.com pursuant to the previous section 5 immediately above. Notwithstanding the foregoing, Respondents are permitted to contact municipal officials for the purpose of obtaining a municipal support letter, as required in section Project Supporting Documents. 7. PROGRAM ELIGIBILITY: 7.1 Eligibility Requirements Pursuant to N.J.S.A. 52:27D-489 a. through o. and N.J.A.C. 19:31-4, and pursuant to the authorization provided in N.J.A.C. 19: (b) and (d) for NJEDA to conduct a competitive application process and consider other factors deemed relevant to the evaluation of Residential Hub Projects, an UTHTC cannot be awarded to a Project unless the Project meets all of the eligibility requirements, including, but not limited to, the following items. All terms used are defined in the UTHTC Act (L. 2007, c.346, et seq., Appendix M), and Regulations (N.J.A.C. 19:31-9.1, et seq., Appendix N). 1. Meets General Program Requirements The Project meets the requirements of the UTHTC Program as set forth in the UTHTC Act (L. 2007, c.346, et seq., Appendix M), Regulations (N.J.A.C. 19:31-9.1, et seq., Appendix N), and requirements of this Solicitation including, but not limited to: 5

6 A. Meet Definitions The Project must meet the definition of qualified residential project or qualified residential project that is part of a mixed use project (either one, Project ), as these terms are defined in N.J.S.A. 34:1B-207, et seq. (Appendix M) and N.J.A.C. 19:31-9.1, et seq. (Appendix N). Projects meeting the definition of a qualified business facility are not eligible for UTHTCs to be awarded under this Solicitation. (Parking is an eligible use and is considered commercial use, unless devoted to the residents of the Project. If only a portion of parking is devoted to the Project residents, then the pro rata cost of the parking construction associated with parking for the Project residents must be attributed to the residential Project cost. The remainder of the Project cost associated with parking is added to the commercial portion of the Project cost.) This requirement will be evidenced by such documents as, but may not be limited to, the NJEDA On- Line Application and Description of Floor Plans for the Project. B. Capital Investment Capital Investment - There must be a minimum of $50 million "capital investment" into the Project and at least $17.5 million "capital investment" in the residential component of the Project within the timeframe defined in G. below, if part of a mixed use project. (Affiliates of the Respondent may satisfy capital requirements.) (Also, projects previously approved under the UTHTC Program as a "qualified business facility" that are part of a mixed use project may utilize the "capital investment" costs of the prior approval to satisfy the $50 million "capital investment" requirements for the Project submitted under this Solicitation, provided they satisfy the $17.5 "capital investment" requirement for the residential component of the Project submitted under this Solicitation.) These requirements will be evidenced by such documents as, but may not be limited to, the statement of Eligible Costs, Sources & Uses, and Project Budget; Project Development Timeline; and Project Operating Proforma. C. Capital Investment Timeframe The capital investment must be made or acquired in the Project by July 28, D. Eligible Municipality The Project must be located in an eligible municipality, i.e., one of the following 9 cities: Jersey City, Hoboken, Newark, Paterson, Elizabeth, East Orange, New Brunswick, Trenton or Camden. This requirement will be evidenced by such documents as, but may not be limited to, the NJEDA On-line Application, and Engineer s or Surveyor s certification of Project location in an Urban Transit Hub certifications. E. Urban Transit Hub Location The Project must be located in an urban transit hub which is defined as the area within a ½ mile of a transit site or within 1 mile, if Camden. (See UTHTC Act, L. 2007, c.346, et seq. and UTHTC Regulations, N.J.A.C. 19:31-9.1, et seq., for definition of urban transit hub. See also section 8. Sources of Information About UTHTC, below for directions on accessing map links for each city.) This requirement will be evidenced by such documents as, but may not be limited to, Engineer or Surveyor s Letter, and NJEDA Online Application. 6

7 F. Respondent Entity Type The Respondent is a C corporation, S corporation, limited liability company, partnership or an entity subject to New Jersey Corporate Business Tax or Insurance Premium Tax. This requirement will be evidenced by such documents as, but may not be limited to, the NJEDA Online Application, Financial Statements, and Tax Returns. G. Project Construction Only capital investments made or acquired after July 28, 2009 are eligible under this Solicitation. This requirement will be evidenced by such documents as, but may not be limited to, the NJEDA Online Application, list of costs already incurred, list of building permits received as of the Due Date, and copies of permits. H. Economic Need for UTHTC A financing gap exists in the Project, as calculated according to NJEDA s current approved policies and practices of comparing the Project s Internal Rate of Return (IRR) to market conditions. This requirement will be evidenced by such documents as, but may not be limited to, the statement of Eligible Costs, Sources & Uses, and Project Budget; and Project Operating Proforma. 2. Meets UTHTC Affordable Housing Standards Pursuant to UTHTC Regulations, N.J.A.C. 19:31-9.1, et seq., section (h), the Project is meeting the UTHTC Program s Affordable Housing requirements as established by the municipality in which the Project is located. This requirement will be evidenced by such documents as, but may not be limited to, the Affordability Certification, Description of Floor Plans, and the municipal resolution regarding the Project s Affordability obligation. 3. Meets Green Practice Requirements The Project is meeting the UTHTC Green Building Practice Requirements as provided on NJEDA s website. (See section 8. Sources of Information About UTHTC, below for directions on accessing the link for the Green Practice Requirements.) This requirement will be evidenced by such documents as, but may not be limited to, the Architect Certification that the Project is being designed to meet the UTHTC Green Building Practice Requirements, and description of how the Project will meet the Green Building Requirements. 4. Financing Commitments All funding for the Project is committed and evidenced by copies of fully-executed, current (i.e., not expired) financial commitments for all sources identified on the Sources and Uses Statement, including equity. If the proceeds from the sale of UTHTCs are part of the Sources and Uses Statement, then a funding commitment also must be provided from the UTHTC transfer buyer(s). The UTHTC transfer buyer(s) commitment letter must include the sale price of the UTHTC. (Conditions for receiving and utilizing Tax Credit Certificates are described in Appendices K and L.) The commitment letter provided by the entity(s) providing equity must state that the entity(s) has sufficient liquidity and is committed to providing the stated equity in the amount shown on the Project s Sources and Uses Statement. In addition to being fully executed and current, a financial commitment also must state the amount, term, interest rate(s), and any other terms and conditions of the funding, and be satisfactory to NJEDA. Commitments may be contingent on award of a UTHTC and other assistance pending before the Authority. All Financial Commitments must be current at the time of submission and be kept current throughout the Evaluation Period and until exercised. This requirement will be evidenced by such documents as, but may not be limited to, copies of Financial Commitments, and the statement of Eligible Costs, Sources & Uses, and Project Budget. 7

8 5. Developer Equity The entity providing equity to the Project has liquid funding, access to capital, and/or is contributing property (including land and any improvements) to the Project. Together the liquid funding, access to capital, and property must be valued in an amount equal to or greater than the amount of equity committed to the Project, as evidenced in the following forms. Liquid funding and access to capital is considered to be cash, cash equivalents, available credit under existing lines of credit, and/or uncalled capital commitments. Contributed Property is considered to be either the cost of the contributed property, if purchased within 6 months of the Due Date of this Solicitation or to be purchased, OR, the appraised value of the property, if purchased 6 months or more prior to the Due Date of this Solicitation. Any appraisal submitted in the Submission Package cannot be more than 1 year old from the Due Date of this Solicitation. Property purchased, or to be purchased, should be bought from a party unrelated by ownership to the entity(s) undertaking the Project. If not, then an appraisal must be performed on the property and submitted. Also, any mortgages on the property will be deducted from the purchase price or appraisal, whichever is applicable. This requirement will be evidenced by such documents as, but may not be limited to, the commitment letter(s) of the Entity(s) providing Equity; the statement of Eligible Costs, Sources & Uses, and Project Budget; Financial Statements; bank statements; investment fund subscription agreements; capital call letters; Land Sale Contract; Purchase Agreement or Option to Purchase Agreement; and Appraisal. 6. Market Feasibility The contemplated Project is feasible within its market as evidenced by a Market Feasibility Study, meeting the Market Feasibility Study Standards defined in Appendix E, and showing that the contemplated Project is feasible based on the Project Operating Proforma. This requirement will be evidenced by such documents as, but may not be limited to, the Market Feasibility Study, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of the Project Operating Proforma. 7. Site Plan Approval and Municipal Support The Project has preliminary site plan approval and has a letter of support for the Project signed by the Mayor of the municipality in which the Project is located. The municipal support letter must also indicate that the Project is a priority for the municipality, the municipality supports the Project s application to NJEDA and, if applicable, references whether the Project is in an Area in Need of Redevelopment or Rehabilitation, as defined by the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., and references the name of the municipality s redevelopment plan of which the Project is a part. This requirement will be evidenced by such documents as, but may not be limited to, the municipal Preliminary Site Plan Approval resolution, Mayor s letter of support for the Project. 8. Developer Capacity The Entity(s) responsible for development of the Project has at least the following: A. 3 years experience in the field of real estate development; B. Has completed or is in process of completing at least 2 projects in the last 10 years of similar size and scope as the one proposed (if any projects are in progress, then at least 1 project must be completed); 8

9 C. A Portfolio of Assets with leverage of no more than 70% (as calculated by dividing the sum of annual debt service of all the real estate assets in the Portfolio by the sum of the market value of the Portfolio assets); D. A Portfolio of Assets with debt service coverage ratio(s) of 1.15 or greater; E. Key members of the Development Team shown on the Development Team Staffing Chart, including consultants, have at least 3 years of experience in their respective fields; and F. The Project Manager has at least the following experience: 1. 5 years in the field of real estate development, and 2. The Project Manager has completed at least 2 projects in the last 10 years of similar size and scope as the one proposed. The above requirements A. through F. will be evidenced by such documents as, but may not be limited to, Description of Experience of Entity(s), Schedule(s) of Portfolio Assets, Development Team Staffing Chart, Summary of Experience of Development Team Members, and Resumes of key Development Team members. 9. Limitations A. Any Project also interested in an Economic Redevelopment and Growth Grant (ERG), Redevelopment Area Bond ( RAB ) or any other NJEDA financial assistance is strongly encouraged to apply at the same time as it responds to this Solicitation or have an ERG application pending before the Authority at the time of this Solicitation s Due Date. This requirement will be evidenced by such documents as, but may not be limited to, NJEDA s internal application status report; the List of Federal, State, County, and Local Financial Assistance; and Financing Commitments. B. Pursuant to N.J.S.A. 34:1B-209 a.(4), the Business Retention & Relocation Assistance Grant (BRRAG), Business Employment Incentive Grant (BEIP), and Economic Recovery Board incentives cannot be used in conjunction with UTHTCs. This requirement will be evidenced by such documents as, but may not be limited to, the List of Federal, State, County, and Local Financial Assistance. C. Subject to the other requirements and conditions of this Solicitation, the award of UTHTCs, if any, will be reduced such that no more than 50% of the Project cost is funded by the combined sources of the State of New Jersey, Federal Government, and UTHTCs. This requirement will be evidenced by such documents as, but may not be limited to, the List of Federal, State, County, and Local Financial Assistance. 10. Attendance at Mandatory Pre-Submission Conference At least 1 representative of the Respondent must attend in person and enter their name, signature and Respondent affiliation on the Sign-In Sheet at the Pre-Submission Conference. This requirement will be evidenced by such documents as, but may not be limited to, the Attendance List created by the Authority and made available at the Mandatory Pre-Submission Conference. 11. Terms and Conditions The Respondent, if awarded, must adhere to the terms and conditions of award. 9

10 12. Employment Requirement The Project is not subject to any employment requirements. 13. Economic Impact Analysis The Project is not subject to an economic impact analysis. References to this in the NJEDA On-Line Application may be disregarded. 7.2 Capital Investment Requirements Pursuant to UTHTC Act, L. 2007, c.346, et seq. and Regulations, N.J.A.C. 19:31-9.1, et seq., the following list provides the eligible and ineligible uses of UTHTCs under the definition of capital investment in a Project. 1. Eligible Uses 1. Site Preparation and Construction expenses incurred for the site preparation and construction, repair, renovation, improvement, equipping, or furnishing of a building, structure, facility or improvement to real property. 2. Soft Costs all costs associated with financing, design, engineering, legal, real estate commissions, furniture, or office equipment with a useful life of less than five years, provided that they do not exceed 20% of total capital investments. 3. Furnishings and Machinery obtaining and installing furnishings and machinery, apparatus or equipment for the operation of a business in a building, structure, facility or improvement to real property, site-related utility and transportation infrastructure improvements, plantings or other environmental components required to attain the level of silver rating or above in the Leadership in Energy & Environmental Design (LEED) building rating system, but only to the extent that such capital investments have not received any grant financial assistance from any other State funding source including N.J.S.A. 52:27H-80, et seq. 4. Environmental Remediation remediation of the Project site, but only to the extent that such remediation has not received financial assistance from any other Federal, State, or local government funding source. 2. Ineligible Uses Vehicles and heavy equipment not permanently located in the building, structure, facility or improvement. 8. SOURCES OF INFORMATION ABOUT UTHTC: The following list provides sources information about the UTHTC Program and this Solicitation. Respondents are strongly encouraged to consult these resources prior to submitting their packages. NJEDA webpage on UTHTC click on Financing & Incentives, EDA Products, Program 10

11 General information Maps of UTHTC eligible areas links for each city Green Building Requirements links (2) NJEDA webpage on Residential Hub Appendix M UTHTC Act, L. 2007, c.346, et seq. Appendix N Regulations, N.J.A.C. 19:31-9.1, et seq. 9. SUBMISSION PACKAGE: 9.1 Submission Requirements The following list of items must be submitted in an organized and clear fashion, including at least page and/or file name references associated with each numbered item on the list below. A total of 6 clearly marked, complete packages on CD, DVD or flash drive must be submitted. All files originally generated by the Respondent in Argus or Excel must be provided in these file formats so that all calculations can be viewed. When preparing the Submission Package of the items listed below, keep in mind that the words must and shall denote items which are mandatory for a Submission Package to be complete. It is the Respondent s sole responsibility to ensure that all required documentation and submissions are included with the Submission Package. Any items listed below that are Not Applicable must be listed in the Submission Package with the notation of Not Applicable or NA. 1. General and Application 1. Due Diligence Check List of items that must be submitted in response to this Solicitation. (See Appendix F.) 2. Completed NJEDA On-Line Application. (See NJEDA website, click on Applications, then Financing & Incentives Applications, then Online Financial Assistance Application. For assistance in filling out the application, click on How to Fill Out An Adobe Acrobat PDF Form. When filling out the application, you may select Mathew Abraham as the NJEDA Business Development Officer contact.) 3. Tax Clearance Certificate no older than three months from Due Date of this Solicitation; OR Tax Clearance Certificate Application and fee of $75 payable to New Jersey Division of Taxation. (See On-Line Application Required Attachments). 4. CEO Certification. (See On-Line Application Required Attachments.) 11

12 5. Completed and signed Development Subsidy Job Goals Accountability Form. (See On-Line Application Required Attachments.) 6. Application Fee of $5,000 made payable to NJEDA, AND a copy of the check. 2. Project Information 7. Eligible costs, detailed Sources and Uses Statement, and detailed project budget for the proposed Project in Excel format, or complete the Eligible Costs, Sources & Uses, and Project Budget Template in Appendix G. 8. Copies of fully-executed, current (i.e., not expired) financial commitments for all sources identified on the Sources and Uses Statement, including from the entity(s) providing equity and, if applicable, letter(s) of interest from the UTHTC transfer buyer(s). The UTHTC transfer buyer letter of interest must include the sale price of the UTHTC. The commitment letter provided by the entity(s) providing equity must state that the entity(s) has sufficient liquidity and is committed to providing the stated equity in the amount shown on the Project s Sources and Uses Statement. In addition to being fully executed and current, a financial commitment also must state the amount, term, interest rate(s), and any other terms and conditions of the funding. Commitments may be contingent on award of a UTHTC and other assistance pending before the Authority. All financial commitments must be current at the time of submission and be kept current while the Project is under consideration by the Authority and until exercised. 9. Project Operating Proforma in Excel or Argus format showing at least the items listed below or complete the Project Operating Proforma Template in Appendix H: A. 10 years of income, expense, cash flow, and debt service activity including the construction period; B. All assumptions must be noted; C. All formulas must be viewable and all spreadsheets must be unprotected and unlocked, with no security measures prohibiting access; and D. The Proforma must be dated within 30 calendar days of this Solicitation s Due Date. 10. A description of all environmental conditions related to the Project. 11. Project Development Timeline, including estimated date to receive permanent Certificate of Occupancy. 12. Detailed list of any costs already incurred at the Project site or pertaining to the Project including: A. Date commenced; B. Cost ; and 12

13 C. How the costs have been funded. 13. Description of Floor Plans for Project, which identifies the following: A. Total square footage of the Project; B. Rentable Building Area (RBA) (or Gross Leasable Area (GLA)) of the Project; C. RBA (or GLA) of all residential units; D. RBA or (GLA) of all commercial space, and if applicable; and E. RBA of residential units being reserved as Affordable. (See Appendix I for definitions of RBA and GLA.) ( Affordability or Affordable is defined as reserved for low or moderate income households as provided in the UTHTC Regulations, N.J.A.C. 19:31-9.1, et seq., section (h).) 14. Conceptual site plan, elevations and schematic drawing(s) of proposed Project. 15. Schedule of Portfolio Assets Provide a schedule of portfolio assets for each of the applicable, listed entities: A. Each corporation, business and/or investment fund undertaking the development of the Project; and B. Each joint venture partner corporation, business and/or investment fund undertaking the development of the Project. Each Schedule of Portfolio Assets must at least include the items listed below for each asset. Information provided must be dated less than 90 days prior to the Due Date of this Solicitation. If the property that is the subject of the Project is owned outright, it must be included in at least one of the above Schedules of Portfolio Assets. 1. Asset name; 2. Property cost; 3. Current market value; 4. Initial debt on the asset; 5. Current outstanding balances on the asset s debt; 6. Annual debt service payment on each asset; 7. Initial closing date on debt; 8. Debt maturity date; and 9. Annual property Net Operating Income. 16. A worksheet detailing the number of units, rents and other affordability standards that the Project is adhering to, if applicable. This worksheet must present information consistent with the Affordability Certification and Municipal Resolution regarding Affordability. 17. A listing of all projects on the Schedule of Portfolio Assets above that are in bank workout. 13

14 18. List of all other Federal, State, County, and Local Financial Assistance committed or pending for the Project. 19. If mixed use, a listing of all committed tenants and evidence for each of their commitment. 20. If mixed use, listing of interested tenants. 21. Project Occupant Application, if applicable. (See On-Line Application Required Attachments.) 22. Market Feasibility Study for proposed Project, which adheres to the Market Feasibility Study Standards in Appendix E. 23. Project property Appraisal must contain the information listed below and conform to the criteria established under the Developer Equity criterion under section 7.1 Eligibility Requirements. 3. Project Supporting Documents 24. Engineer or Surveyor s Letter certifying distance in miles of the Project location from an Urban Transit Hub. (See On-Line Application Required Attachments.) 25. Letter of support for the Project signed by the Mayor of the municipality in which the Project is located, indicating that: A. The Project is a priority for the municipality; B. The municipality supports the Project s application to NJEDA; C. If applicable, the Project is located in an Area in Need of Redevelopment or an Area in Need of Rehabilitation as defined by the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq.; and D. If applicable, reference to the name of the redevelopment plan of which the Project is a part. 26. Copy of the Resolution, certified by the City Council Clerk, which states whether the Project has an obligation to the municipality to create Affordable units. 27. If applicable, an Affordability Certification stating the number of units, RBA being committed to Affordability, and other affordability measures such as percentage of Area Median Income, which must be consistent with the municipal resolution regarding Affordability listed immediately above. (Affordability or Affordable is defined as reserved for low or moderate income households as provided in the UTHTC Regulations, N.J.A.C. 19:31-9.1, et seq., section (h).) (See Appendix I for definition of RBA.) 28. Copy of resolution, certified by the Board Secretary, granting Preliminary Site Plan Approval from the municipality in which the Project is located. 14

15 29. Copy of resolution, certified by the Board Secretary, granting Zoning Board Approval from the municipality in which the Project is located, if applicable. 30. List of all State Approvals received as of the Due Date of this Solicitation, including such agencies of the New Jersey Department of Environmental Protection, New Jersey Department of Transportation, and other applicable agencies and authorities. 31. Print outs from the Geocoding System on the Federal Financial Institutions Examination Council (FFIEC) website of the income designation of the Census Tract in which the Project is located and all adjacent Census Tracts to the Project s tract. A print out must be provided for each address if the Project has more than one address. Directions for using the FFIEC Geocoding System can be found in Appendix J. 32. Certification from Architect regarding Green Building Practice Requirements: A. Stating which requirement the Project is being designed to meet - the Interim Green Building Guidance and/or the Board of Public Utilities (BPU) Pay for Performance program guidelines (see click on Financing and Incentives, click on EDA Products, click on Program, and click on links to Green Building Practice Requirements ); and B. Stating that the Project is being designed to meet the selected Green Building Practice Requirements. 33. Detailed Description from Architect of how the Project intends to meet the selected Green Building Practice Requirements. 34. List of all building permits received as of the Due Date of this Solicitation AND copies of permits pertaining to existing building renovation or addition. (See On- Line Application Required Attachments) 35. Evidence of site control from one or a combination of the following: A. Fee simple title; B. Fully-executed long-term lease agreement for a term of at least 10 years; C. Fully-executed Option to Purchase Agreement; D. Fully-executed Option to Lease Agreement for a term of at least 10 years; E. Fully-executed Purchase Agreement or Land Sale Contract or other enforceable agreement to acquire the property on which the Project will be built; and F. Court-filed declaration of taking and fully-executed development agreement with a public agency that specifies the site to be acquired. 15

16 NOTE: The purchase contract, declaration of taking and development agreement, option to purchase, or option to lease must not expire before the anticipated construction start date. 36. Description of all current and previous engagements of Jones Lang LaSalle, NJEDA s contracted real estate development advisory consultant, for real estate related work performed for the Respondent whether performed for the Project that is the subject of the Submission Package or for others of the Respondent s projects. The description must include a brief description of each engagement, start date, end date, and work result of the engagement. 4. Financial Information 37. Reviewed or Audited Financial Statements for the last 2 fiscal years of the Entity providing Equity (Balance Sheet, Income, and Cash Flow Statements). If an individual, then last two years tax returns and last two years personal financial statements. 38. If last fiscal year Statements of the Entity providing Equity are more than 90 days old, provide management-prepared interim Financial Statements dated not more than 90 days from the Due Date of this Solicitation, OR complete business tax returns for 3 most recent years. 39. Reviewed or Audited Financial Statements for the last fiscal year of any greaterthan-10% owner of the Entity providing Equity (Balance Sheet, Income, and Cash Flow Statements). If an individual, then personal financial statement not more than 90 days old, and last year s tax return. 40. Reviewed or Audited Financial Statements for the last 2 fiscal years of all other entities identified on the Organizational Chart (Balance Sheet, Income, and Cash Flow Statements). 41. Subscription Agreements for all partners or members for investment funds contributing Equity to the Project. 42. All capital call letters for investment funds contributing equity to the Project. 43. Two most recent months from the Due Date of this Solicitation of bank statements pertaining to the Respondent, the developer (if different from the Respondent), and entity providing equity (if different from Respondent). This includes statements for lines of credit. 5. Ownership / Management Information 44. Organizational Chart identifying the entities associated with the Project. 45. Statement describing the ownership of the entities identified on the Organizational Chart. 16

17 46. Description of experience of entity(s) responsible for development of the Project. This description must include at least the following items for the entity responsible for development of the Project, and if more than one entity, each entity responsible for the Project s development: A. A general description of the entity; and B. A list of all projects in which the Respondent has been involved of similar size and scope to the one proposed, over the most recent 10 years including: 1. Brief description of each project; 2. Total cost of each project; 3. Brief description of the Respondent s role in each development; and 4. Completion date for each project, or if applicable, anticipated completion date. 47. Development Team Staffing Chart showing the Project Manager and other key staff working on the Project, including consultants. This chart must include the General Contractor, if not considered the Project Manager. 48. Brief Summary of the experience of each staff and consultant Team Member identified on the Development Team Staffing Chart, including: A. The number of years working in each team member s respective field B. List of the projects worked on, including: 1. Brief description of each project; 2. Total project cost of each project; 3. Completion date for each project, or if applicable, anticipated completion date; 4. Brief description of whether each completed project was on time and within budget, and if not, explanation of why; and 5. Copies of temporary, or if available, permanent Certificates of Occupancy for completed projects. 49. Resumes for each Development Team member identified on the Development Team Staffing Chart. A. As-is and improved valuations; and B. Break out by land and improvements. Also the Appraisal must conform to the following criteria: 1. It must be completed within 1 year of the Due Date of this Solicitation; and 2. The appraisal must conform to the Uniform Standards of Professional Appraisal Practice. 6. Acknowledgements 50. Completed and signed Acknowledgement of Review of Q&A Document Form. (See Appendix A.) 17

18 51. Completed and signed Open Public Records Acknowledgement Form. (See Appendix B.) 52. Applicable Conflict of Interest Certification. (See Appendix C.) 53. Signed Certification Verifying Submission Package. (See Appendix D.) 54. If applicable, completed and signed Acknowledgement of Addendum Form. 9.2 Confidentiality: All Submission Packages will be subject to disclosure, including but not limited to, a request pursuant to the Open Public Records Act ("OPRA"), N.J.S.A. 47:1A-1, et seq., the New Jersey Open Public Meetings Act OPMA, N.J.S.A. 10:4-6, et seq., and, and common law right to know. If the Respondent believes that information contained in its Submission Package merits confidential treatment pursuant to OPRA, OPMA and/or common law right to know, any such purportedly confidential information submitted to NJEDA may be specifically identified and marked by the Respondent. The Respondent must acknowledge the conditions of the New Jersey Open Public Records Act, Open Public Meetings Act and common law right to know under which the Respondents Submission Package must be reviewed. (See Appendix B for the Open Public Records Acknowledgement Form.) 10. PROGRAM FEES: 10.1 Non-Refundable Fees: The following non-refundable fees apply to Projects submitted under this Solicitation: Application Fee - $5,000 (This fee must be included in the Submission Package and submitted by the Due Date.) Full amount of direct costs of any analysis by a third party retained by the NJEDA (See section 10.2 Third Party Project Analysis for further explanation.) Commitment Fee - 0.5% due at NJEDA Board approval, not to exceed $300,000 Closing Fee - 0.5% due at closing, not to exceed $300,000 Annual Review Fee - $2,500 Tax Credit Transfer Application Fee - $2,500 (All transfers must be approved by NJEDA.) If not submitting a current Tax Clearance Certificate, then a $75 Taxation Tax Clearance Certificate Application Processing Fee applies. This must be made payable to New Jersey Division of Taxation and must be accompanied by a Tax Clearance Certificate Application (See section 9.1 Submission Requirements for 18

19 further information.) (If not submitting a Tax Clearance Certificate, this fee must be included in the Submission Package and submitted by the Due Date.) 10.2 Third Party Project Analysis: The Authority reserves the right to utilize its third party, contracted real estate advisory services consulting firm, Jones Lang LaSalle ( Firm ) or another third-party consultant, to perform or assist in performing analysis of any or all Projects submitted under this Solicitation. All Respondents must divulge any services performed in the past and those currently under contract with this firm, and must sign the applicable Conflict of Interest Certification, in Appendix C related to any work performed by the Firm for the Respondent. There is no adverse consequence for the Respondent or the Project if the Firm has been employed in the past or is employed currently. 11. DUE DATE AND SUBMISSION PACKAGE DELIVERY: Submission Packages prepared in accordance with section 9.1 Submission Requirements, must be received on or before 3:00 PM, EST on Thursday, December 20, 2012, at NJEDA s offices, located at 36 West State Street, Trenton, NJ Submission Packages must be submitted to the Authority in a securely, sealed envelope. Unsealed, faxed or ed Submission Packages shall not be accepted. Proposals must be addressed to: Mailing Address: New Jersey Economic Development Authority Marketing and Product PO Box 990 Trenton, NJ Shipping / Delivery Address: New Jersey Economic Development Authority Marketing and Product 36 West State Street Trenton, NJ Telephone: Main Reception Desk Submission Packages in response to this Solicitation will be received until the date and time for receipt referenced above and then publicly opened, at the NJEDA Trenton Office indicated above at 3:00 pm on Thursday, December 20, Submission Packages will be available, upon request, for public inspection. The Authority staff will make reasonable efforts to maintain confidentiality of information received as part of the Solicitation process; however, all Respondents are cautioned that the Authority is subject to the 19

20 provisions of the New Jersey Open Public Meetings Act (N.J.S.A. 10:4-6, et seq.), the New Jersey Open Public Records Act (N.J.S.A. 47:1A-1), and common law right to know. 12. SCORING CRITERIA: Projects meeting the Program Eligibility requirements established in section 7. Program Eligibility will be scored based upon the criteria below. These criteria are consistent with the public purpose standards of the Program as established in the UTHTC Statute, N.J.S.A. 34:1B (a) (1), which states, "In allocating all credits to qualified residential projects under this section, the executive director shall take into account, together with other factors deemed relevant by the executive director: input from the municipality in which the project is to be located, whether the project furthers specific State or municipal planning and development objectives, or both, and whether the project furthers a public purpose, such as catalyzing urban development or maximizing the value of vacant, dilapidated, outmoded, government-owned, or underutilized property, or both." 1. Timeliness of Project 20% Construction of the proposed Project starting in 12 months or less of this Solicitation s Due Date will receive higher scoring. Start of Project Construction is defined as the date that installation of the foundation begins. It does not include site preparation, nor does it include digging associated with the foundation. This criterion will be evidenced by such documents as, but may not be limited to, the Project Development Timeline. 2. Mixed Use Incorporation 20% The Project incorporates commercial uses, in addition to residential uses, as measured as a percentage of Rentable Building Area (RBA) or Gross Leasable Area (GLA) of the entire Project. Greater percentages of commercial use incorporation, subject to the limitations of the definition of qualified residential project that is part of a mixed use project, receive higher scoring. Commercial uses include, but are not limited to, office, industrial, retail, higher education, healthcare, health and fitness, convenience, dining and parking, exclusive of prohibited uses. Parking devoted to residential use is considered Residential Use, as are hotels and dormitories. (See Appendix I for definitions of RBA and GLA.) This criterion will be evidenced by such documents as, but may not be limited to, the NJEDA Online Application, Description of Floor Plans, Conceptual Site Plan, elevations, schematic drawings, List of committed tenants, and Market Feasibility Study. 3. Location 15% A Project located in a 2012 Low or Moderate Income Census Tract, or in a Census Tract abutting a 2012 Low or Moderate Income Census Tract will receive higher scoring. This criterion will be evidenced by such documents as, but may not be limited to, print outs from the Federal Financial Institutions Examination Council (FFIEC) Geocoding System website. 4. Renovation 15% A Project involving renovation and/or adaptive reuse of an existing structure will receive higher scoring. This criterion will be evidenced by such documents as, but may not be limited to, the NJEDA Online Application. 20

21 5. Part of Redevelopment Plan 10% A Project located in an Area in Need of Redevelopment or an Area in Need of Rehabilitation as defined by the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., will receive higher scoring. This criterion will be evidenced by such documents as, but may not be limited to, municipal resolution designating the area where the Project is located as an Area in Need of Redevelopment or an Area in Need of Rehabilitation. 6. Developer Capacity 10% The entity(s) responsible for development of the Project meeting greater numbers of the following will receive higher scoring: A. More than 5 years experience in the field of real estate development; B. Has completed or is in process of completing at least 3 projects in the last 10 years of similar size and scope as the one proposed (if any projects are in progress, then at least 2 projects must be completed); C. A Portfolio of Assets with leverage of no more than 65% (as calculated by dividing the sum of annual debt service of all the real estate assets in the Portfolio by the sum of the market value of the Portfolio assets); D. A Portfolio of Assets with debt service coverage ratio(s) of 1.2 or greater; E. All members of the Development Team, including consultants, have 5 or more years of experience in their respective fields; and F. The Project Manager has the following experience: 1. 7 or more years in the field of real estate development; and 2. The Project Manager has completed at least 3 projects in the last 10 years of similar size and scope as the one proposed. (If any projects are in progress, then at least 2 projects must be completed.) The criteria A. through F. above will be evidenced by such documents as, but may not be limited to, Description of Experience of Entity(s), Schedule(s) of Portfolio Assets, Development Team Staffing Chart, Summary of Experience of Development Team Members, and Resumes of key Development Team members. 7. Amount of Equity Contributed to Project 5% The amount of Equity being contributed to the Project, measured as a percentage of Project cost. Greater percentages of equity contribution receive higher scoring. Equity may be in the form of cash, cash equivalents, available credit under existing lines of credit, uncalled capital commitments, and/or Contributed Property, subject to the limitations and requirements of section Developer Equity, above. This requirement will be evidenced by such documents as, but may not be limited to, the commitment letter(s) of the Entity(s) providing Equity; the statement of Eligible Costs, Sources & Uses, and Project Budget; Financial Statements; bank statements; investment fund subscription agreements; capital call letters; Land Sale Contract; Purchase Agreement or Option to Purchase Agreement; and Appraisal. 21