On your mark, get set, go…Posted: July 12, 2013
Are you on the fence about building a new building or renovating your existing facility? There are a couple of regulations that are in effect and/or set to expire in the near future that may make you want to consider proceeding now. With the loss of jobs and hit on the economy, legislations were passed in the last few years that were intended to spur development and encourage business growth.
Permit Extension Act
In 2008, New Jersey passed an act which stopped the clock on running approvals (State, County, Local, etc.) during an “extension period” of January 1, 2007 through December 31, 2012. The act was then renewed at the end of 2012 which extended the extension period to December 31, 2014. What this all means is that any permit or approval that was still valid as of January 1, 2007 will still be valid on December 31, 2014. On December 31, 2014, when the clock starts again, the permits and approvals will be valid for an additional six months or for the time that would have remained on January 1, 2007, whichever is shorter. Of course, there are some restrictions and exceptions to the act. Full text of the act can be found at http://www.njleg.state.nj.us/2012/Bills/A1500/1338_R4.PDF
Statewide Non-Residential Development Act Moratorium
In 2008, an act was put in place that subjected all new developments to a contribution in the amount of 2.5% of the assessed value. These fees would be provided to the local municipality and were to be used to meet the State’s affordable housing requirements. In 2009, New Jersey passed an Economic Stimulus Act which placed a moratorium on the collection of the non-residential development fee. The act stated that any non-residential project which was granted either preliminary or final site plan approval prior to July 1, 2010 were exempt from providing the development fee. This act was subsequently renewed in 2011 which included approvals up to July 1, 2013. As the extension has expired once more, approval to extend the moratorium to July 1, 2016 is pending a revision from the state legislature and approval from the governor.
What does this all mean? These acts, which will extend older approvals and/or save you 2.5% of the projects, are set to expire in the next two years. Will these acts be extended once more? No one knows for sure, but why chance it?
Well you have plenty of time, right? Not really. The typical time period for approvals from the concept phase to approvals runs anywhere from 9 months to 2 years depending on the project. Renovation projects tend to take less time to gain approval, with a typical turn-around time of 3 to 6 months. That doesn’t leave much time to squander.
We would love to help you get through the finish line or even get you out of the starting blocks. Let us take a look at your current or proposed projects. Our in house architects, engineers and project managers all work together to speed up the development process and always have their focus on the end goal.