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EOZ PILOT

The Brownfield and Contaminated Site Remediation Act, N.J.S.A. 58:10B-1 et seq., requires the posting and maintenance of remediation funding sources to help ensure the
proper and full remediation of a given site. One exception to the obligation to provide a remediation funding source applies to remediation being undertaken within a designated
“environmental opportunity zone.” The Environmental Opportunity Zone Act, N.J.S.A. 54:4-3.150 et seq., (the “EOZ Law”) establishes the procedure and requirements to
designate and administer an environmental opportunity zone (“EOZ”). The following is a summary of the requirements of the EOZ Law and terms contained in the proposed
ordinance for consideration by the Town of Phillipsburg:

DESIGNATION OF EOZ: Town adopts an ordinance designating certain areas as EOZ and authorizing tax exemptions for at least 10, but not more
than 15 years.

APPLICATION FOR TAX EXEMPTION: All applications for tax exemptions must be on the form provided by the Director of the Division of Taxation and there
must be a memorandum of agreement or administrative consent order between the owner of the property and the NJ
Department of Environmental Protection. The tax exemption may be approved by resolution.

FINANCIAL AGREEMENT: • Land (not the improvements) will be exempt from taxation.
• Term of 15 years.
• PILOTs in the following schedule:
o Year 1 = No payment
o Year 2 = 10% otherwise applicable taxes (“OAT”)
o Year 3 = 20% OAT
o Year 4 = 30% OAT
o Year 5 = 40% OAT
o Year 6 = 50% OAT
o Year 7 = 55% OAT
o Year 8 = 60% OAT
o Year 9 = 65% OAT
o Year 10 = 70% OAT
o Year 11 = 75% OAT
o Year 12 = 80% OAT
o Year 13 = 85% OAT
o Year 14 = 90% OAT
o Year 15 = 95% OAT
REMEDIATION FUNDING SOURCE: The obligation to post and maintain remediation funding sources shall not apply so long the tax exemption for the EOZ
remains in effect.

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