Month: January 2025

Planning and Development Services

MSW’s Planning and Development Services team helps clients get shovels in the ground. Through the development of comprehensive strategies throughout the pre-approval and post-approval process, our team helps clients expediate their development schedules, saving time and money in the process.

At Murphy Schiller & Wilkes LLP (MSW), our Planning and Development Services team is dedicated to helping clients transform plans into reality. From pre-approval to post-approval, we craft and execute strategies that streamline the development process, reducing delays, saving costs, and ultimately getting shovels in the ground faster.

We understand that securing land use approvals is just one piece of the puzzle—getting a project underway is an entirely separate challenge. To address this, our Planning and Development Services group provides targeted, client-focused solutions in three key areas:

1. Entitlement Planning

Navigating the entitlements process efficiently is critical for any development project. Our team works closely with municipal planning and engineering professionals to ensure that project designs meet local standards, streamlining approvals. This proactive, pre-application engagement minimizes delays during the resolution compliance and permitting stages, helping clients move their projects forward more quickly.

2. Resolution Compliance

In many of New Jersey’s largest municipalities, resolution compliance often becomes a bottleneck, causing costly delays. Our team’s deep understanding of local processes and relationships with key stakeholders allows us to take the lead in managing compliance submissions and final signoffs. By ensuring that documents are reviewed promptly by the right officials, we help significantly reduce the time required to navigate this complex stage.

3. Permitting

Once resolution compliance is secured, we guide clients through the building permit process with precision. Thanks to long-standing relationships with construction officials and review agents, we help expedite permit approvals, ensuring that construction can commence without unnecessary delays.

At MSW, we don’t just assist with development—we deliver solutions that keep projects on schedule and on budget. Let our Planning and Development Services team help you turn your vision into reality.

Practice Group Leaders:

Christopher Watson
Director of Planning and Development Services
Phone: (973) 705-7421
Email: cwatson@murphyllp.com

Chris J. Murphy, Partner
Chair, Tax Credits & Incentives
Phone: (973) 705-7442
Email: cmurphy@murphyllp.com

On January 23, 2025, Governor Phil Murphy signed recently passed legislation (S1323/A2076) that significantly changes the Aspire Tax Credit Program. Aspire is the state’s main developer-focused incentive program, designed to spur residential and commercial development through the provision of tax credits. The amendments make meaningful changes to the Aspire program, altering which projects qualify, the size of the potential tax credit and several key aspects that have major financial implications.

On the same day, the New Jersey Economic Development Authority (NJEDA) held a Special Telephonic Board Meeting, during which they approved the first Aspire project in Jersey City. The Board granted an award of $64,226,368 to support a six-story, 210-unit housing project, with 35% of the units designated as affordable housing. This development is part of the larger Bayfront project in Jersey City’s West Side.

During this Special Meeting, the NJEDA also approved a new incentive program that seeks to enhance cultural arts activities across the state. The Cultural Arts Facilities Expansion (CAFE) program. CAFE is a gap financing tax credit program providing awards of up to 100% of eligible capital and operating costs (not to exceed $75M) for projects with a minimum project size of $5M. Qualifying institutions must be engaged in cultural, educational, or artistic enrichment in the state.

More information on the CAFE program to follow on the MSW Blog when the rules are made public.

Aspire

On December 19, 2024, the New Jersey State Senate and Assembly passed legislation (S1323/A2076), known as the “Aspire Amendment,” which Governor Phil Murphy signed into law on January 23, 2025. This legislation introduces significant changes to the Aspire Tax Credit Program, the state’s primary developer-focused incentive designed to promote residential and commercial development.

Major changes were made to the program, including:

• Expanded eligible areas
• New municipalities qualifying as GRMs
• Reduced thresholds for Transformative projects
• New Special Mission Non-profit Projects designation

We covered these changes in our article last month: Aspire Tax Credit Update – NJ Legislature Approves Amendments

To date, the NJEDA has awarded over $2,600,000,000 in tax credits to 25 development projects in municipalities across New Jersey, including Jersey City, Woodbridge, Morristown, Newark, Hoboken, Union City, Bayonne, Trenton, and Camden. The program has been used to finance several large-scale projects, including the following:

• 386-unit mixed-use project in Hoboken, NJ.
• 58-acre, 1,567,385 square feet film studio in Bayonne, NJ.
• 101-unit senior affordable housing development in Union City, NJ.
• $356,000,000 mixed-use development in Newark, NJ, including 350 residential units, a new 53,000 square foot arts-education and community facility, 12,600 square feet of commercial space, and improvements to a 100,000 square foot performing arts center.

The Aspire Tax Credit Program provides tax credits covering between 50-85% of eligible project costs (not to exceed between $60M-$120M) for qualifying projects in eligible locations. Aspire can be used for both residential and commercial developments, and for projects as small as 25,000 – 50,000 square feet for commercial and $5,000,000 – $17,500,000 for residential, depending on location.

Cultural Arts Facilities Expansion (CAFE) program

At a Special Meeting on January 23rd, 2025, the New Jersey Economic Development Authority (NJEDA) approved the new Cultural Arts Facilities Expansion (CAFE) program. This $1.2B gap financing program is designed to support cultural arts institutions constructing or rehabilitating theaters, museums, galleries, libraries and performing arts centers across New Jersey.

CAFE will award tax credits up to 100% of eligible capital and operating costs (not to exceed $75M) for projects with a minimum project size of $5M. Qualifying institutions must be engaged in cultural, educational, or artistic enrichment in the state. The EDA anticipates the first application window opening this spring. If you know of an institution that could benefit from this program, do not hesitate to reach out.

More information on the CAFE program to follow on the MSW Blog when the rules are made public.

For more information, please contact:

Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com

Chris J. Murphy, Partner
Chair, Tax Credits & Incentives
Phone: (973) 705-7421
Email: cmurphy@murphyllp.com

The Murphy Schiller & Wilkes LLP (MSW) Construction and Litigation team recently succeeded in discharging a construction lien by court order and precluded a lienor from filing any further lien claims. MSW, led by Brant Forrest, partner and co-chair of the MSW Construction and Litigation Groups, represented a general contractor on a large-scale residential project. A subcontractor improperly recorded a construction lien claim against a project.

Pursuant to N.J.S.A. 2A:44A-14, MSW served a notice on the subcontractor demanding the subcontractor commence an action to foreclose on the construction lien within 30 days or otherwise forfeit any lien rights. After the subcontractor failed to commence any action, MSW filed an Order to Show Cause seeking immediate discharge of the construction lien and an award of attorneys’ fees. The court agreed with the arguments presented by MSW in that the subcontractor failed to take timely action after receiving the notice under N.J.S.A. 2A:44A-14, and ordered the discharge of the construction lien. In addition, the court deemed the subcontractor forfeited its lien rights and awarded attorneys’ fees to the general contractor.

For more information, please contact us:

R. Brant Forrest
Phone: (973) 320-7591
Email: bforrest@murphyllp.com

As New Jersey faces a critical juncture in urban development, the roles of zoning reforms and affordable housing tax credits have never been more essential. This article delves into these transformative forces, aiming to equip executives, bankers, policymakers, and developers with the insights needed to navigate these changes not just efficiently, but with unprecedented profitability and societal impact.

Consider the transformative Springfield Avenue Marketplace in Newark. This initiative utilized Low-Income Housing Tax Credits (LIHTC) alongside progressive zoning to revitalize a declining neighborhood into a bustling community center. It boasts 24,000 square feet of commercial space, alongside 152 affordable units, supported by a coalition of city planners, developers, and financiers. This collaboration not only fueled economic growth but also catalyzed further developments, showcasing a blueprint for sustainable urban renewal.

List of Challenges: Industry professionals routinely encounter formidable challenges:

• Regulatory Navigation: The ever-evolving landscape of federal and state regulations demands constant vigilance.
• Financing: Integrating incentives into a capital stack and accounting for the various rules presents a significant barrier.
• Community Buy-in: Local opposition can significantly stall developments.
• Cost Management: Adhering to budgets in fluctuating market conditions is continually challenging.

Solutions and Opportunities: Addressing these challenges requires innovative thinking:

• Enhanced Public-Private Partnerships: Foster partnerships that not only share risks but also integrate community services to gain public support.
• Innovative Financing Models: Explore all possible incentives to fund affordable units and maintain returns.
• Proactive Community Engagement: Implement comprehensive stakeholder engagement plans early in the development process to mitigate resistance and enhance community benefits.
• Advanced Project Management Techniques: Utilize state-of-the-art construction management software and eco-friendly building practices to reduce costs and environmental impact.

To incentivize affordable housing, government agencies and municipalities in the State of New Jersey administer a range of funding sources available to developments that provide affordable housing:

• Aspire: The Aspire program from the New Jersey Economic Development Agency (“NJEDA”) has provided over $1,400,000,000 in tax credits to 20 residential projects that include affordable housing.
• LIHTC: the New Jersey Housing and Mortgage Finance Agency (“NJHMFA”) allocates tax credits through their 4 Percent and 9 Percent programs to incentivize residential developments up to 100% affordable.
• HOME Investment Partnerships Program (“HOME”): a locally administered federal program that provides grant funding for the rehabilitation and creation of affordable housing.
• Other programs: the NJEDA administers a multitude of targeted incentive programs that provide additional funds for specific types of development, including the Brownfields Incentive Program and the Historic Property Reinvestment Program.

The future of affordable housing depends on proactive industry leadership. Engage and learn more about affordable housing by joining my collaborative think tank on sustainable development. Your expertise can spearhead the change needed to ensure affordable housing not only exists but thrives in New Jersey.

Tackling affordable housing under New Jersey’s new regulatory frameworks offers strategic benefits. By mastering tax credits and zoning reforms, you can lead successful projects that foster community development and economic growth. Embrace your role as a thought leader—your actions today will shape the sustainable cities of tomorrow.

For more information, please contact us:

Roosevelt J. Donat, Esq.
Special Counsel
Land Use, Zoning and Redevelopment
Phone: (973) 705-7414
Email: rdonat@murphyllp.com

Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com

In what was a banner-year for the transactional team at Murphy Schiller & Wilkes LLP (MSW), the firm helped clients close over $1,000,000,000 in commercial real estate and financing transactions throughout the country. Providing a full suite of legal services to the commercial real estate industry, the firm regularly represents a wide range of clients, including institutional funds, lenders, developers, family offices and private investors in connection with the most complex transactional matters.

In 2024, the firm represented the following:

• Borrower in connection with Deed in Lieu transfer of 600,000 SF office complex in downtown Denver, CO in connection with $110,000,000 loan.
• Seller in connection with $135,000,000 sale of industrial portfolio in northern New Jersey.
• National bank in connection with modification of $125,000,000 revolving credit facility.
• Developer in connection with a $114,000,000 tax credit award under the Aspire Tax Credit Program for a multi-phased mixed-use development in central New Jersey.
• National cannabis company on $100,000,000+ term financing secured by business and real estate assets across multiple states.
• Borrower in connection with loan modification of $88,000,000 loan and deed-in-lieu transaction for office building in San Francisco, California.
• Borrower in connection with the defeasance of a $30,300,000 loan and new CMBS financing in the amount of $86,000,000 encumbering multiple multi-housing family projects located in Essex County, NJ.
• Developer in connection with $74,000,000 Aspire tax credit for multi-family project in Newark, NJ.
• Developer in connection with $40,000,000 purchase of industrial property in Middlesex County, New Jersey.
• Developer in connection with $35,000,000 refinance of multifamily property with major life insurance company lender.
• Developer in connection with $30,000,000 acquisition and construction loan for industrial project in New Castle County, Delaware.
• New Jersey bank in connection with a $30,000,000 revolving credit facility and a $10,000,000 equipment loan facility for a New Jersey based company.
• International bank in connection with amendment and restatement of $27,000,000 in credit facilities secured by properties in multiple states.
• Borrower in connection with a $26,500,000 life insurance company refinance of a multifamily property in Essex County, New Jersey.
• Community bank in connection with a participation in a $21,000,000 mortgage loan for a New Jersey senior care facility.
• Borrower in connection with $20,000,000 construction loan for property located in Union County, New Jersey.
• Lender in connection with a $20,000,000 construction loan for a multifamily development in Morris County, New Jersey.
• Developer in connection with $20,000,000 sale of industrial building in East Rutherford, New Jersey.
• International lender in connection with the modification of $19,450,000 in credit facilities secured by business and real estate assets across multiple states.
• Purchaser in connection with $9,000,000 acquisition of warehouse distribution site in South Brunswick, NJ.

On December 19th, 2024, New Jersey Economic Development Authority (“NJEDA”) held its monthly Board meeting in Trenton, NJ. Along with other items, the NJEDA approved three new Aspire awards in Camden, Fort Monmouth, and Trenton, totaling over $400,000,000 in tax credits.

The NJEDA also approved an award through the Atlantic City Revitalization Grant Program, in addition to updating and reopening the program, which provides grant funding of up to 50% of eligible soft and hard costs for qualifying projects in Atlantic City.

Additionally, on Thursday, December 19th, 2024, the New Jersey State Senate and Assembly passed legislation (S1323/A2076) that will significantly change the Aspire Tax Credit Program. The law is anticipated to be signed by Governor Murphy in the coming weeks.

See below for more details on these updates and the associated programs.

Aspire Approvals

The NJEDA Board approved three new Aspire projects at their December 19th meeting. These new projects were located in Camden, Fort Monmouth and Trenton and totaled over $400,000,000 in new tax credits.

A residential project in Camden was awarded approximately $17,720,000 in Aspire tax credits for a project including:

• 30 affordable housing units
• 26,283 square foot health center
• $36,000,000 in total development costs
• 4,481-square-foot commercial space

Netflix’s new flagship East Coast production facility, located in Fort Monmouth, NJ, was awarded $387,000,000 tax credits. This Transformative project, slated to open in 2028, will comprise:

• Over 1,000,000 square feet studio campus over a 292-acre parcel
• 12 soundstages, backlot areas, an office building, and other production support facilities

A 100% affordable rehabilitation project in Trenton, NJ, was awarded $22,769,231 in tax credits, consisting of 110 rental units affordable at 60% of Area Median Income (“AMI”) spread across eight 3-story buildings.

To date, the NJEDA has awarded over $2,500,000,000 in tax credits to 25 development projects in municipalities across New Jersey, including Woodbridge, Morristown, Newark, Hoboken, Union City, Bayonne, Trenton, and Camden. The Aspire Tax Credit Program provides tax credits covering between 50-85% of eligible project costs (not to exceed between $60M-$120M) for qualifying projects in eligible locations. Aspire can be used for both residential and commercial developments, and for projects as small as 25,000 – 50,000 square feet for commercial and $5,000,000 – $17,500,000 for residential, depending on location.

Aspire Amendments

On December 19th, 2024, the New Jersey State Senate and Assembly passed legislation (S1323/A2076) updating Aspire which will have significant implications for the program. The amendments alter which projects qualify, the size of the potential tax credit and several key aspects that have financial implications for a project that uses the Aspire program.

Major changes to the program include:

• Additional cities now qualify as Government Restricted Municipalities (GRMs)
• New Special Mission Non-profit Projects (SMNP) designation
• Lower thresholds to qualify as a mixed-use Transformative project
• Reduced Eligibility Periods for certain projects

Have a look at earlier post ( Aspire Tax Credit Update – NJ Legislature Approves Amendments ) for more detailed information.

Atlantic City Revitalization Program

This program was initially funded with $19,650,000 and began accepting rolling applications on January 31, 2024. The program was created to provide grant funding to for-profit and non-profit developers to help fund projects that contribute to Atlantic City’s revitalization. It funded up to 50% of eligible soft and hard costs for qualifying projects, with a required grant size of $1,000,000 to $10,000,000.

Every project must focus on addressing at least one local impact priority, including:

• Addressing downtown vitality efforts
• Job and office space creation
• Food insecurity
• Clean and safe initiatives
• Small business support

At the December 19th meeting, the NJEDA Board approved a grant of $4,200,000, in addition the rollover and reallocation of previously unused and withdrawn funding in order to reopen the application window. After this approval, $3,900,000 will remain in available funding. The Board approved changes to the rules of the program, including the requirement that future programs be rehabilitation only, among others. The program closed applications earlier this year, and a date has not yet been set for the next application window.

For more information, please contact:

Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com

Chris J. Murphy, Partner
Chair, Tax Credits & Incentives
Phone: (973) 705-7421
Email: cmurphy@murphyllp.com