Current through Register Vol. 56, No. 24, December 18, 2024
(a) The Committee shall
send the project agreement to the nonprofit. The nonprofit shall ensure that the
project agreement is approved and signed by the nonprofit's attorney, and executed
by the person authorized under the resolution described at
N.J.A.C. 2:76-13.3(a)2. The
project agreement shall contain:
1. An
identification of the parcels to be acquired or preserved as part of the project
site;
2. The estimated cost of
acquisition of the project site; and
3.
The following conditions:
i. That the nonprofit
shall, for lands acquired in fee simple title, ensure that the lands are maintained
for agricultural use and production pursuant to
N.J.A.C. 2:76-6.1 5;
ii. That the nonprofit shall, for lands acquired
in fee simple title, agree not to sell, lease, exchange, or donate the lands unless:
(1) The lands will continue to be maintained for
agricultural use and production pursuant to
N.J.A.C. 2:76-6.1 5;
(2) The Committee is notified that the restricted
farm is being offered for sale, exchange or donation; and
(3) The Committee approves the transfer in writing
prior to the nonprofit's offering, for sale or conveyance, of any of its interest in
the land. This requirement for written approval is met if an intended transferee is
named in the project agreement executed under this section;
iii. That the nonprofit shall, in the case of the
acquisition of a development easement, agree not to convey the development easement
except to the Federal government, the State, a local unit of government, or another
qualifying tax exempt nonprofit organization for farmland preservation
purposes;
iv. That the nonprofit shall,
at the time of acquisition of lands in fee simple title, agree to execute a deed of
easement. The deed of easement shall be recorded in the same manner as a deed and
shall run with the land. The deed of easement shall contain the following:
(1) Restrictions consistent with the provisions of
N.J.A.C. 2:76-6.1 5 and approved by the
Committee;
(2) The Committee's right to
enforce the conditions of the restrictions;
(3) The remedies available to the Committee in the
event the nonprofit does not comply with the conditions of the
restrictions;
(4) A reimbursement
provision which requires the nonprofit that sells or donates any interest in any
lands acquired with a grant by the Committee, that the nonprofit shall pay to the
Committee 50 percent of the net proceeds. For purposes of this section, "net
proceeds" means the amount of compensation received by the nonprofit in excess of
any unreimbursed costs; and
(5) Other
special conditions as appropriate;
v. That the nonprofit shall, at the time of
acquisition of a development easement, agree to execute a deed of easement. The deed
of easement shall be recorded in the same manner as a deed and shall run with the
land. The deed of easement shall contain the following:
(1) Restrictions consistent with the provisions of
N.J.A.C. 2:76-6.1 5 and approved by the
Committee;
(2) The Committee's right to
enforce the conditions of the restrictions;
(3) The remedies available to the Committee in the
event the nonprofit does not comply with the conditions of the restrictions;
and
(4) Other special conditions as
appropriate;
vi. The
requirements for recordkeeping and project administration pursuant to
N.J.A.C. 2:76-16.4; and
vii. Other terms and conditions, including a
statement of the remedies described at (f) through (i) below.
(b) Upon receipt of the project
agreement executed in accordance with (a) above, the Committee shall establish an
account from which the grant shall be disbursed.
(c) The Committee and the nonprofit shall execute
an amendment to the project agreement to:
1. Add a
parcel to the project site if the nonprofit demonstrates that the parcel meets the
project eligibility requirements at
N.J.A.C. 2:76-12.3;
2. Extend the project period established in the
project agreement if the nonprofit demonstrates that it is making a good faith
effort to complete the project in an expeditious manner; or
3. Reflect any supplemental funding provided under
N.J.A.C. 2:76-15.3.
(d) Upon receipt of notification from the
nonprofit of the scheduled date of closing, the nonprofit shall forward a copy of
the title commitment, survey, deed of easement and any other necessary documents to
complete the closing.
1. The Committee shall review
the closing documents and, if appropriate, send the executed deed of easement
required under (a)3iv or v above to the nonprofit. The Committee shall forward the
approved grant to the nonprofit. The nonprofit shall have the deed of easement
recorded by the county clerk or registrar either when the deed for the project site
is recorded or when the nonprofit receives the first disbursement of Committee
funds.
i. A copy of the executed deed of easement
shall be forwarded to the Committee.
ii.
A copy of the recorded deed of easement shall be forwarded to the Committee when
available.
(e) In
addition to any other rights or remedies available to the Committee under law, if
the nonprofit does not comply with any of the requirements of the project agreement,
the deed of easement, this chapter, or the Committee laws, or if the nonprofit makes
any material misrepresentation in the project application and/or the documentation
submitted in support of the application, the Committee may take any of the following
actions:
1. Issue a written notice of noncompliance
directing the nonprofit to take and complete corrective action within 30 days of
receipt of the notice.
i. If the nonprofit does
not take corrective action, or if the corrective action taken is not adequate in the
judgement of the Committee, then the Committee may take any of the actions described
at (e)2 through 4 and (f) below;
2. Withhold a grant disbursement or portion
thereof;
3. Terminate the project
agreement; and/or
4. Demand immediate
repayment of all Committee funds that the nonprofit has received.
(f) If the nonprofit fails to comply
with any of the terms of the project agreement, the deed of easement, this chapter,
or the Committee laws, the Committee may initiate suit for injunctive relief or to
seek specific enforcement, without posting bond, it being acknowledged that any
actual or threatened failure to comply will cause irreparable harm to the Committee
and that money damages will not provide an adequate remedy.
(g) If the Committee incurs legal or other
expenses, including its own personnel expenses, for the collection of payments due
or in the enforcement or performance of any of the nonprofit's obligations under the
project agreement, the deed of easement, this chapter, or the Committee laws, the
nonprofit shall pay these expenses on demand by the Committee.
(h) The Committee is not required to mitigate any
damages to the nonprofit resulting from the nonprofit's noncompliance with the terms
of the project agreement, the deed of easement, this chapter or the Committee laws.
1. The nonprofit shall monitor lands from which a
development easement was acquired or lands purchased in fee simple title pursuant to
the provisions of
N.J.A.C. 2:76-16.5.
