Current through Register Vol. 57, No. 6, March
17, 2025
(a) If a local
government unit or nonprofit seeks to enter into or to renew a lease or use
agreement which would support or promote the use of funded parkland or a
recreation and conservation facility on the funded parkland for recreation and
conservation purposes, the local government unit or nonprofit shall submit the
proposed lease or agreement to the Department for approval at least 45 days
before it intends to execute the lease or agreement. Any such lease or use
agreement that is executed without the Department's approval is void and of no
legal effect.
(b) The lease or
agreement shall:
1. Be awarded in compliance
with the Local Public Contracts Law,
N.J.S.A.
40A:11-1 -et seq., the Local Land and
Buildings Law, N.J.S.A. 13:12-1 et seq. and
N.J.A.C.
7:36-25.6, as applicable;
2. Describe the specific use to which the
parkland or facility will be put during the term of the lease or agreement and
explain how this use will promote the use of funded parkland for recreation and
conservation purposes;
3. Require
that the public shall have reasonable access during the term of the lease or
agreement to the parkland or facility which is the subject of the lease or
agreement;
4. Establish the initial
term of the lease or agreement pursuant to the following:
i. The lease or agreement shall provide for
an initial term of no more than five years, or for good cause shown (such as
the proposed construction of substantial capital improvements by the lessee or
parkland user), provide for a longer initial term of less than 25 years;
or
ii. The lease or agreement may
provide for an initial term of 25 years or more; however, a term of 25 years or
more shall be deemed to constitute a conveyance of parkland and requires the
approval of the Commissioner and the State House Commission under N.J.A.C.
7:36-26.
5. Establish
that the local government unit or nonprofit may, subject the approval of the
Department at the end of the initial term and each additional term, renew the
lease or agreement at the end of the initial term and thereafter for additional
terms. Any renewal term shall be for no more than five years, or for good cause
shown less than 25 years, unless a longer renewal term is approved by the
Commissioner and the State House Commission in accordance with N.J.A.C.
7:36-26. The Department shall evaluate a request for renewal of a lease or
agreement under the substantive standards for lease approval at (d)
below;
6. Specify the payment,
rental, or other consideration to be paid by the lessee or parkland user to the
local government unit or nonprofit for the lease or use of the
parkland;
7. Require that the
lessee or parkland user comply with the lease, the applicable requirements of
this subchapter, and any deed restrictions pertaining to the
parkland;
8. Specify that any
activities conducted on parkland under the lease or agreement are governed by
the requirements of this chapter, the lease and any deed restrictions
pertaining to the parkland;
9.
Require the lessee or parkland user to name the Department as an additional
insured under any insurance policy required by the lease or agreement, such
that the Department shall have in all respects at least the same protections as
the policy provides to the lessee, parkland user, local government unit or
nonprofit; and
10. If the parkland
is to be leased or used for agriculture, require that:
i. The parkland shall be farmed using
management practices that conserve soil and water, such as those agricultural
management practices approved by the State Agriculture Development Committee
under the Right to Farm Act,
N.J.S.A.
4:1C-1 et seq., and that minimize the use of
herbicides, pesticides, and fertilizers in accordance with the Pesticide
Control Code at N.J.A.C. 7:30;
ii.
Any forests on the parkland to be leased or used shall be managed in accordance
with the New Jersey Forestry and Wetlands Best Practices Manual; and
iii. The agricultural use of the parkland
shall not adversely impact any documented occurrence of a threatened,
endangered, or rare species or the habitat of such species.
(c) If the use of the
parkland under the proposed lease or agreement will have an adverse impact on
the natural resource values of the parkland, the local government unit or
nonprofit shall require that the person seeking the lease or agreement propose
a compensatory mitigation plan. If the plan is accepted by the local government
unit or nonprofit and approved by the Department, implementation of the plan
shall be included as a mandatory condition of the lease or agreement. The
Department will not approve any lease or agreement, or a renewal thereof, under
this subsection unless:
1. It is satisfied
with the character, quality and extent of the mitigation and restoration
proposed by the local government unit or nonprofit and the commitment of the
lessee or parkland user to implement the plan; or
2. The proposed lease or agreement is
approved as a diversion or disposal of parkland by the Commissioner and the
State House Commission in accordance in accordance with N.J.A.C.
7:36-26.
(d) The
Department will consider the following factors in determining whether to
approve or deny a lease or use agreement, or a renewal thereof, under this
section:
1. Whether the lease was awarded in
compliance with the Local Public Contracts Law,
N.J.S.A.
40A:11-1 et seq., the Local Land and
Buildings Law, N.J.S.A. 13:12-1 et seq. and
N.J.A.C.
7:36-25.6, as applicable;
2. Whether the lease or agreement will
sufficiently promote or support recreation or conservation purposes;
3. Whether the lease or agreement will
provide reasonable public access to the funded parkland;
4. Whether the lease or agreement complies
with the requirements of (b) and (c) above;
5. Whether the lease or agreement will
provide sufficient compensation (payment, rental or other consideration) for
allowing the proposed use of the parkland or a facility on parkland;
6. If the lease or agreement would have a
term of 25 years or more or would otherwise constitute a diversion or disposal
of parkland, whether the lease or agreement has received prior approval of the
Commissioner and the State House Commission in accordance with N.J.A.C.
7:36-26;
7. If the lease or
agreement would have an adverse impact on the natural resource values of the
parkland, whether the lease or agreement includes a compensatory mitigation
plan which would adequately compensate for the adverse impact and/or adequately
restore the parkland; and
8. With
respect to renewals, in addition to (d)1 through 7 above:
i. Whether the lessee or parkland user failed
to meet one or more terms of the prior lease or agreement or to demonstrate
sound administrative or management practices;
ii. If the lessee or parkland user is seeking
a renewal term of more than five years, whether the local government unit or
nonprofit has shown good cause for the lessee's or parkland user's holding or
continuing to hold a long term lease; or
iii. Whether the local government unit or
nonprofit used compensation (payments, rentals or other consideration) it
received under the prior lease or agreement for purposes other than those
allowed under (e) below.
(e) A local government unit or nonprofit that
enters into a lease or use agreement under this section shall use any payments,
rentals, or other consideration it receives under the lease or agreement for
operating, maintenance, or capital expenses related to its funded parkland or
to its recreation program as a whole.
(f) A local government unit or nonprofit may
operate a recreational facility on funded parkland through a concession
agreement awarded by competitive bidding in accordance with applicable law. The
concessionaire shall pay any payments or rentals collected directly to the
local government unit or nonprofit, who shall use such payments or rentals for
operating, maintenance or capital expenses related to its funded parkland or
its recreation program as a whole.
(g) A local government unit may enter into or
renew a lease or use agreement which would promote or support the use of
unfunded parkland for recreation and conservation purposes without the prior
approval of the Department, provided the lease or use agreement complies with
the requirements of (b) through (e) above. At its option, the local government
unit may submit the lease or use agreement to the Department for review and
approval. A copy of any lease or use agreement executed by a local government
unit under this subsection shall be made available to the Department upon its
request. Any lease or agreement executed by a local government unit under this
subsection that does not comply with (b) through (e) above is void and of no
effect.
