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MONTCLAIR, NEW JERSEY
May 20, 2008

The Council of the Township of Montclair, in the County of Essex, met in the Conference Room in the Municipal Building, 205 Claremont Avenue, for a Conference Meeting at 7:30 P.M.
Present: Mayor Remsen, Deputy Mayor Michaelson and Councilors Lang and Schlager.
Absent: Councilors Freier, Mattox and Tobin

STATEMENT OF SUNSHINE NOTICE

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The Council scheduled a budget review meeting for Wednesday June 4, 2008 at 6:00pm. The Council-elect and appropriate staff members will be invited to attend.

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NEW BUSINESS

Municipal Clerk Linda S. Wanat read the following resolution:

BE IT RESOLVED that the following statements of revenues and appropriations shall constitute the Municipal Budget for the year 2008:

Amount to be Raised by Taxes for Support of Municipal Budget:

Local Tax for Municipal Purposes Including Reserve for Uncollected Taxes: $43,305,154.83

BE IT FURTHER RESOLVED, that the budget will be published in the Montclair Times in the issue of May 29, 2008.

Ayes: Mayor Remsen, Deputy Mayor Michaelson and Councilors Lang and Tobin

Absent: Councilors Freier, Mattox, and Tobin.

Notice is hereby given that the Budget and Tax Resolution was adopted by the Governing Body of the Township of Montclair, County of Essex, on May 20, 2008.

A hearing on the Budget and Tax Resolution will be held at the Municipal Building, on June 17, 2008 at 8:00 o’clock P.M. at which time and place discussions to said Budget and Tax Resolution for the year 2008 may be presented by taxpayers or other interested persons.

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On a motion made by Mayor Remsen and duly seconded, the following resolution was adopted by unanimous vote:

WHEREAS, Homes of Montclair Ecumenical Corp., a New Jersey non-profit corporation (hereinafter referred to as the “Sponsor”) proposes to construct a housing project/renovation pursuant to the provisions of the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended (N.J.S.A. 55:14K-1 et seq.) and the rules promulgated thereunder (N.J.A.C. 5:80-1 et seq.) (hereinafter referred to as the “HFMA Requirements”) on property designated as Block 4210 Lot 21 on the Official Tax Maps of the Township of Montclair and commonly known as 55 Glen ridge Avenue, Montclair, New Jersey (hereinafter referred to as the “Project”);

WHEREAS, the Project will provide and maintain six (6) affordable dwelling units in the Township of Montclair to occupied by low and moderate income residents; and

WHEREAS, the Project will be subject to HMFA Requirements, the Township Council hereby determines that there is a need for this housing project in the municipality; and

WHEREAS, the Sponsor has presented to the Township a revenue projection for the Project which sets forth the anticipated revenue to be received by the Sponsor from the operation of the Project as estimated by the Sponsor and the Agency, a copy of which is attached hereto as Exhibit “A”; now therefore

BE IT RESOLVED by the Council of the Township of Montclair, in the County of Essex that:

1. The Council finds and determines that the Project will meet or meets an existing housing need in the Township of Montclair

2. The Council finds and determines that the Project proposed by the Sponsor will satisfy a part of the Township’s low and moderate income housing obligation;

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3.The Council does hereby adopt this Resolution and makes the determination and findings herein contained by virtue of, pursuant to, and in conformity with the provisions of the HFMA Requirements with the intent and purpose that the Agency shall rely thereon in making a mortgage loan to the Sponsor, which will construct, own and operate the Project;

4.The Council does hereby adopt the within Resolution with the further intent and purpose that from the date of execution of the Agency mortgage, the proposed Project, including both the land and improvements thereon, will be exempt from real property taxation as provided in the HFMA Requirements, provided that payments in lieu of taxes for municipal services supplied to the Project are made to the Municipality in such amounts and manner set forth in the Agreement for Payment in Lieu of Taxes attached hereto as Exhibit “B”; and

5.The Mayor and Township Clerk be and they are hereby authorized to execute and attest, on behalf of the Township, the Agreement for Payment in Lieu of Taxes in substantially the form annexed hereto as Exhibit “B.”

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On a motion made by Mayor Remsen and duly seconded, the following resolution was adopted by unanimous vote:

WHEREAS, the Township of Montclair wishes to apply for funding for a project under the Safe and Secure Communities Program (Grant No. P-4292); and

WHEREAS, the project is a joint effort between the Department of Law and Public Safety and the Township of Montclair for the purpose described in the application; and

WHEREAS, the Township Council of the Township of Montclair, in the County of Essex, that:

1.As a matter of public policy, the Township of Montclair wishes to participate to fullest extent possible with the Department of Law and Public Safety and the Township of Montclair for the purpose described in the application; and

2.The Attorney General will receive funds on behalf of the Township of Montclair.

3.The Division of Criminal Justice shall be responsible for the receipt and review of the applications for said funds.

4.The Division of Criminal Justice shall initiate allocations to watch applicant as authorized.

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On a motion made by Mayor Remsen and duly seconded, the minutes of February 26, and March 11, 2008 were approved by unanimous vote.

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AMENDMENTS TO THE DEVELOPMENT FEE ORDINANCE, REVISED SPENDING PLAN.

RECEIVE: Karen Kadus, Director of Planning.

Ms. Kadus presented the following proposed ordinance changes

“AMENDMENTS TO DEVELOPMENT FEE ORDINANCE, SECTION 202

Amend Section 202-41 to read as follows:

Residential development fees.

Within all zoning districts, developers of residential uses shall pay a development fee of 1½% of the equalized assessed value of any eligible activity pursuant to Section 202-43.

Amend Section 202-42 to read as follows:

Nonresidential development fees.

Within all zoning districts, developers of nonresidential uses shall pay a development fee of 3% of the equalized assed value of any eligible activity pursuant to Section 202-43.”

She stressed the need to continue to collect development fees so they can be used to rehabilitate housing units under COAH’s third round requirements for the municipality. (IZO fees cannot be utilized for rehabilitation).

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Ms. Kadus also presented a revised Township of Montclair Spending Plan.


“INTRODUCTION

Montclair’s first Spending Plan was adopted by the Township Council on October 8, 2002. Montclair began collecting development fees in 2004. In April 2006, Montclair adopted an Inclusionary Zoning Ordinance (IZO) which required the payment of a fee in lieu of providing on-site affordable housing. Montclair has not collected any IZO fees as of the date of this Spending Plan.

This Spending Plan replaces the original Spending Plan adopted in 2002 and incorporates COAH third round regulations and our new IZO program.

This Spending Plan is prepared in accordance with NJAC5:97-8.10 and includes the following mandatory elements:

• A projection of revenues collected for development based upon known development approvals and historic rate of development activity.

• A description of the administrative mechanism that the municipality will use to collect and distribute revenues.

• A description of the anticipated use of all affordable housing trust funds.

• A schedule for the expenditure of all affordable housing trust funds.

• A schedule for the creation or rehabilitation of housing units.

• A plan to spend the balance of funds.

• A pro-forma for the sponsoring of any non-profit housing development.

• A description of how the municipality will address any shortfall or excess of funds.

PROJECTION OF REVENUES COLLECTED

 The Township has collected development fees in the amounts listed below by year:

2004: $15,765.50

2005: $31,459.50

2006: $72,902.92

2007: $339,794.78

To project revenues to be collected through 2018, the Township considered all projects currently before the Planning and Zoning Boards for development approvals. Additionally, it examined the historic rate of development and the collection rate since 2004. It also considered the current downturn in the real estate market which is affecting the rate of development in the community and will continue to do so into the near future.

Montclair anticipates revenues totaling $800,000 from development fees and $1,000,000 from IZO fees through 2018.

ADMINISTRATIVE MECHANISM TO COLLECT AND DISTRIBUTE FEES

The following procedural sequence for the collection and distribution of revenues is conducted by the Township:

Collection

The Director of Planning & Community Development or her designee is responsible for the overall management of the fund. The Director will supervise the collection of all fees which will be turned over to the Township Treasurer who will deposit the funds in separate interest-bearing accounts.

Planning and Zoning Board application direction packets include an explanation of the development fee and IZO and notification that it is payable before the issuance of a certificate of occupancy.

The approving Resolution adopted by the Planning or Zoning Board, a copy of which is provided to the developer, shall include as a condition of approval the payment of a development fee or IZO before
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receipt of a certificate of occupancy.

A developer who does not require Planning or Zoning Board approval, but whose project is still subject to a development fee or IZO fee, shall receive a written notice describing the payment of a fee at the time of a certificate of occupancy.

Upon request of a certificate of occupancy, or as soon as detailed plans are available, the Department of Planning & Community Development will request that the Township Tax Assessor calculate the value of the project and set the fee based upon the equalized assessed value.

The full fee is paid to the Planning & Community Development Department. No certificate of occupancy is issued until the Tax Assessor has made this calculation and the entire fee is paid. The funds are then forwarded to the Township Treasurer and deposited in an affordable housing trust fund.

Distribution

The Montclair Housing Commission, established by the Township Council in 2004, considers requests for affordable housing trust funds by developers. It then forwards a recommendation to the Township Council concerning the expenditure of funds as set forth in this Spending Plan. The Township Council reviews the request and makes a decision.

The use and release of funds require the adoption of a Resolution by the Township Council. Once a funding request is approved, the Township Treasurer releases the revenues from the fund for the specific use as per the Township Council’s Resolution.

ANTICIPATED USE OF FUNDS

The Township’s affordable housing production since 2000, along with some projects in the pipeline, will allow us to meet COAH’s Growth Share projection of 131 housing units through the year 2018. We will continue, however, to identify opportunities to assist developers with funding for new affordable housing construction, including purchase assistance.

The descriptions below identify the projects we will fund/have funded to meet our Growth Share obligation.

• HOMECorp, 55 Glenridge Avenue, $150,000, 6 existing rental units preserved for affordable housing. This project was funded from development fees. The Township’s $150,000 investment made it possible for HOMECorp to purchase the property. The property is located in the Pine Street Rehabilitation Area.

• HOMECorp, 53-55 New Street, $80,000 to construct 4 affordable condominium units on vacant property designated as a redevelopment area. The project will be funded by IZO fees.

Having met our Growth Share obligation through 2018, the Township’s primary goal is to identify rehabilitation opportunities to meet our Rehabilitation Share number of 304 housing units through the year 2018. It is anticipated that we will direct a majority of our development fee revenues to fund a rehabilitation program with the goal of rehabilitating 30 units per year for 10 years. We have assembled a list of all multi-family developments containing at least 25 units. Owners of these 35 apartment buildings will be contacted to determine the feasibility of rehabilitating several units at each property and reserving them for low/moderate income households. It is estimated that $25,000 per unit will be required for rehabilitation.

IZO fees will be used for new construction and for purchase assistance, land purchase, and other non-rehabilitation activities.

Montclair will utilize, when necessary, up to 20% of revenues for administrative purposes which may include consultant fees necessary to implement programs, such as a rehabilitation program.

Montclair will also devote a minimum of 30 percent of revenues to render units more affordable through programs such as down payment assistance, rental assistance and closing cost assistance.

SCHEDULE FOR EXPENDITURE

The $150,000 expenditure to HOMECorp was made in January 2008.

The $80,000 expenditure to HOMECorp will be made in either 2008 or 2009, depending upon the receipt of additional funding from governmental and private sources.

Expenditures for both a consultant to operate a rehabilitation program and the actual grant/loans to developers as part of a rehabilitation program will be made on a yearly basis.

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SCHEDULE FOR CREATION OR REHAB OF UNITS

The 6 units at 55 Glenridge Avenue were existing when purchased. Affordability controls were placed on the existing units through 2022.

The construction of 4 new condominiums at 53-55 New Street is scheduled to be completed in 2009.

The implementation of a rehabilitation program to renovate 30 units per year will begin in 2009.
PLAN FOR BALANCE OF FUNDS

No balance of funds is anticipated. If it occurs, it will be used towards rehabilitation.

PRO-FORMAS

Pro-formas for 55 Glenridge Avenue and 53-55 New Street are attached.

SHORTFALLS/EXCESS

The Township Council, by Resolution dated November 14, 2005, has committed to fund any shortfall to achieve its affordable housing goals.”

Ms. Kadus provided a sample resolution approving a Township spending plan for development fees and inclusionary zoning fees.

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ACCESSORY DWELLING UNITS

RECEIVE: George Burroughs, Barry Roy, Anne O’Gorman, Tony Schuman, Bob Goddsell, Members of the Montclair Housing Commission.

Mr. Schuman offered a definition of an accessory dwelling unit (aka “granny unit.”). He explained the benefit of this type of housing:

• Allows “seniors” to stay in the municipality

• Increases housing opportunities for young adults

• Relatively low construction cost

• Minor impact on the character of the surrounding neighborhood

The Commission presented a draft ordinance which could be used as a pilot study with a “sunset” provision to conclude before June 2012.

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PORTABLE STORAGE UNIT ORDINANCE

Township Attorney Alan Trembulak presented a draft ordinance to regulate placement of Portable on Demand Storage units on individual properties. Installation of a POD would require a permit and payment of a fee.

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SHADE TREE PRESERVATION ORDINANCE­

Mayor Remsen indicated that the Environmental Commission prefers that a “shade tree preservation” ordinance and the creation of a Shade Tree Commission be deferred until the new Council is seated.

The Council decided to TABLE this item.

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PUBLIC COMMENT

Greg Waters, representing Garden Street neighbors, requested a postponement of the second reading of the pending traffic ordinance for this street because some of the residents impacted did not receive advance notice of the hearing.

The Council will hold a public hearing on May 27, 2008 but continue it to another date.

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At 9:40 P.M., on motion made by Mayor Remsen and duly seconded, the Regular Meeting was adjourned by unanimous vote.

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ED REMSEN MAYOR

ATTEST:
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LINDA S. WANATMUNICIPAL CLERK