CSG Law Alert: NJEDA Opens Application for ART Program
The New Jersey Economic Development Authority (“NJEDA”) announced this month the opening of applications for its Activation, Revitalization, and Transformation (“ART”) Program. Funded through the American Rescue Plan, the ART Program has been established as a one-time grant opportunity to support economic recovery in urban areas with mass transit that have faced economic harms from the reduction of commuters due to the COVID-19 pandemic.
The first round of funding under the ART Program – $10 million – will be made available for eligible projects in Atlantic City and Newark. The funding will be evenly allocated between the two municipalities and will support one of two products established by the NJEDA: “Real Estate Rehabilitation and Development” and “Public Space Activation.” Funds awarded for Real Estate Rehabilitation and Development will account for up to 70 percent of the total ART program funding to support project-specific hard and soft costs that revitalize commercial corridors and incentivize catalytic development. Funds awarded for Public Space Activation will account for up to 30 percent of the total program funding.
For ART Program’s Real Estate Rehabilitation and Development product, eligible applicants include non-profit economic development or redevelopment agencies, commercial property owners, and private or non-profit developers. Applicants must meet certain program eligibility requirements. For example, all capital construction projects must have a total cost of less than $10 million and the project must be commercial or mixed-use.
For ART’s Public Space Activation product, eligible applicants are limited to nonprofit organizations with a 501(c)(3) or 501(c)(19) status and that are created to support and revitalize communities. Funding for Public Space Activation product is expected to support projects that create public space activation initiatives such as such as placemaking, events, public art installations, signage, streetscape improvements, and small business support.
Following the COVID-19 pandemic, the State has unveiled a broad portfolio of programs offering economic incentives and tax credits to jump start the recovery process. ART is another recent example of the State’s effort to revitalize economic activity in urban areas with mass transit.
Applications for the ART program must be submitted to the NJEDA by 5:00 pm on August 22, 2023. For more information about this particular program or other State economic incentive programs, please contact your CSG Law attorney or the author of this alert.