NJ S3406

Expands the definition of "government-restricted municipality" to include Newark, East Orange, Union City, Elizabeth, New Brunswick, Camden, Vineland, Bridgeton, and Lakewood, lowering the municipal revitalization index distress score threshold from 75 to 40

Allows redevelopment projects in government-restricted municipalities to demonstrate a net positive benefit to the State that is up to 50 percentage points lower than the standard requirement (reduced from the current 35 percentage point allowance)

Removes the requirement for the Economic Development Authority to reduce tax credit awards if the actual project financing gap at certification is less than initially approved, and eliminates the 7th-year and final-year rate of return clawback provisions

Permits developers of residential projects to satisfy wage requirements through a project labor agreement instead of paying prevailing wages for construction workers

Provides a 10-year tax abatement structure for Aspire Program redevelopment projects: full exemption on improvements for the first 5 years after receiving a certificate of occupancy, followed by a phased-in payment-in-lieu-of-taxes schedule increasing by 20% annually over the subsequent 5 years