Resources

Contact Person Outside of South Jersey:
Susan Ney
Fax:  (609) 348-3121

MISSION STATEMENT

To reinvest a portion of Casino Industry's gross revenues in housing and economic development projects statewide.

PREFACE

Beginning in 1984, below market rate project financing became available statewide through the Casino Reinvestment Development Authority (CRDA). Loans obtained from the CRDA must be secured; projects must be financially feasible; and projects must receive a bond rating of "B" or better. Funds can be used for construction, rehabilitation, acquisition, professional fees, etc. CRDA can provide construction and permanent financing. Project fees can be capitalized in the loan.

PURPOSES OF THE AUTHORITY

The purposes of the Casino Reinvestment Development Authority shall be:

1. to maintain public confidence in the casino gaming industry as a unique tool of urban redevelopment for the City of Atlantic City and to directly facilitate the redevelopment of existing blighted areas and address the pressing social and economic needs of the residents of the City of Atlantic City and State of New Jersey by providing eligible projects in which casino licensees shall invest
2. to provide casino licensees with an effective method of encouraging new capital investment in Atlantic City which investment capital would not otherwise be attracted by major casino hotel convention complexes or by normal market conditions and which will not supplant capital, either public or private, that would otherwise be invested in the City of Atlantic City or in the jurisdiction in which the investment is to be made and which will have the effect of benefiting the public at large and increasing opportunities and choices of those of low and moderate income in particular
3. to provide, further and promote tourist industries in New Jersey and especially Atlantic County, by providing financing for planning, acquisition, construction, improvement, maintenance and operation of facilities for the recreation and entertainment of the public which may include an arts center, cultural center, historic site or landmark, or sports center
4. to provide loans and other financial assistance for the planning, acquisition, construction, reconstruction, demolition, rehabilitation, conversion, repair or alteration of buildings of facilities to provide decent, safe and sanitary dwelling units for persons of low, moderate, median range, and middle income in need of housing, and to provide mortgage financing for such units
5. to assist in the financing of structures, franchises, equipment and facilities for the operation of, expansion of and the development of public transportation or for terminal purposes, including, but not limited to, development and improvement of port terminal structures, facilities and equipment for public use;
6. to provide loans and other financial assistance for the construction, reconstruction, demolition, rehabilitation, conversion, repair or alteration of convention halls in Atlantic County and the State of New Jersey, including, but not limited to, office facilities, commercial facilities, community service facilities, parking facilities, hotel facilities and other facilities for the accommodation and entertainment of tourists and visitors
7. to make loans and assist in the financing of the construction, reconstruction, rehabilitation, repair or acquisition of infrastructure projects, including, but not limited to, sewage disposal facilities, water facilities, solid waste disposal facilities, roads, highways and bridges
8. to assist in financing buildings, structures and other property to increase opportunities in manufacturing, industrial, commercial, recreational, retail and service enterprises in the State so as to induce and to accelerate opportunity for employment in these enterprises, particularly of unemployed and underemployed residents of the jurisdiction in which the investment is to be made; to provide loans and other financial assistance for the planning, developing or preservation of new and existing small businesses as well as the planning, acquisition, construction, reconstruction, rehabilitation, particularly those which provide services or employment to unemployed or underemployed residents of the State; and to provide loans and other financial assistance to provide employment training and retraining, particularly for unemployed and underemployed residents of the State
9. to cooperate with and assist local government units in financing any eligible project
10. to encourage investment in, or financing of, any plan, project, facility, or program which directly serves pressing social and economic needs of the residents of the jurisdiction or region in which the investment is to be made, including, but not limited to, schools, supermarkets, commercial establishments, day care centers, parks and community service centers, and any other plan, project, facility or program which best serves the interest of the public in accordance with Section 25 of this 1984 amendatory and supplementary act
11. to encourage investment in, or financing of, projects which are made as part of a comprehensive plan to improve blighted or redevelopment areas or are targeted to benefit low through middle income residents of the jurisdiction or region in which the investments are to be made
12. to make loans for eligible projects in any combination of the foregoing, based on the availability of funds

ELIGIBILITY CRITERIA

The CRDA has established certain policies for the approval of projects utilizing funds devoted to the financing of projects.

1. General Criteria for Project Financing
   
   1. Ability of the project to meet the statute or CRDA purposes
      
   2. Capability of the project to obtain a satisfactory bond rating
      
   3. Availability of CRDA funds
      
   4. Readiness of applicant to proceed (financially and programmatically)
      
   5. Financial feasibility of the project
2. Priority Objectives
   Priority will be given to project applications in accordance with the priority standards set forth in NJSA 5:12-144.a(f) and NJAC 19:65-2.6. Within that framework, the Authority shall give emphasis to projects which:
   
   1. directly address the impact of casino gambling on housing, community development and community services
      
   2. develop regional tourism
      
   3. create economic development opportunities
3. Notwithstanding the Authority's obligation to give priority to projects that will lead to the revitalization of the urban areas, the Authority shall continue to welcome other applications that meet the priority objectives above.
4. The Authority shall continue to look to governmental agencies and other agencies to fund projects that build infrastructure or other traditional governmental core services, finding that governmental entities are more appropriate sources of funding for these areas.
5. The Authority shall fund those projects that, but for the Authority's funding, would not be completed.

SPECIFIC PROJECT DOCUMENTS

(Other Documents May Be Required Depending on the Project)

Should you be interested in CRDA project financing, please submit to James B. Kennedy, Executive Director, at minimum, the following information:

1. Description of the project including the boundaries of the site, zoning, neighborhood description, parking, the benefits and needs for such a project
   
2. A detailed breakdown on development costs from all sources
   
3. List the sources of capital for which you have obtained written firm commitments. Describe the loan collateral, lien positions, conditions, and terms of all loans and grants related to this project
   
4. A projected operating pro forma at minimum 10 years for economic development type projects and 15 years for housing
   
5. A clear map, 8 ½ X 11, of the municipality showing the location of your project
   
6. Description of the developer, the development team, ownership and the experience of the developer
   
7. Project and construction schedules
   
8. Copy of site control document, if applicable
   
9. Financial history of developer for the past three (3) years
   
10. Description of environmental conditions that exist on or near the site
    
11. Marketing, managing, and monitoring plans for the project
    
12. Documentation that demonstrates the project meets the eligibility criteria

PROCESSING THE PROJECT APPLICATION

The CRDA reviews requests for funding on a continuous basis.

1. Funding requests are submitted to the appropriate CRDA Project Review Committee. The Committee reviews these requests for program requirements, priority eligibility, need, and compliance to the Statute.
2. If the Project Review Committee finds that a project is eligible for funding, it will recommend approval to the full CRDA Board.
3. The full CRDA Board grants three approvals for funding.
   
   1. The first approval is for Preliminary Determination of Eligibility. Prior to the second approval, the following activities must take place:
      
      • Public Hearing in municipality where the Project will be located.
        
      • Project underwriting evaluations.
        
      • Project bond rating.
        
   2. The second approval is for Project Approval and Fund Reservation.
      
   3. The final approval is the approval of the funding documents.
      
   4. Should the Project Review Committee find a project ineligible, the applicant will be notified by the CRDA.

GENERAL REQUIREMENTS

1. Projects will be funded to no more than 90% of total project costs. The balance may come from any source. In the event a private developer is involved, a minimum 10% equity contribution is required from the developer.
2. Projects must be eligible pursuant to NJSA 5:12-144(f). Generally, the funds should benefit the public at large and those of low and moderate income in particular. Projects may be deemed eligible for CRDA financing if the funds are used in the following ways:
   1. further and promote the tourist industry through the creation or improvement of recreation and entertainment facilities, including arts or cultural centers, historic sites or landmarks, or sports centers
      
   2. housing persons of low, moderate, median and middle income
      
   3. structures, franchises, equipment and facilities for the operation of public transportation
      
   4. convention halls and attendance projects such as offices, commercial facilities, community service facilities, parking and hotel facilities, or other facilities for the accommodation and entertainment of tourists and visitors
      
   5. financing for buildings, structures and other property that will increase opportunities in manufacturing, industrial, commercial, recreational, retail and service enterprises that will induce or accelerate employment opportunities, particularly for unemployed and underemployed persons
      
   6. planning, developing or preservation of new and existing small businesses
      
   7. employment training and retraining, particularly for unemployed and underemployed persons
      
   8. pressing social and economic needs of the residents such as schools, supermarkets, commercial establishments, day care centers, parks, or community service centers
      
   9. projects that are part of a comprehensive plan to improve blighted or redevelopment areas
      
      
3. CRDA Loan Origination Fee: 2 points
   Rate and Terms: Term - Open
   Rate - 2/3 of applicable bond index plus 5% servicing fee
4. Minimum Project Size: $350,000
5. CRDA Bond Rating Fee: $5,000 - $15,000
6. CRDA Legal Fee: $5,000 - $30,000
7. CRDA Construction Oversight: Approximately $1,500 per month during construction, plus $4,000
8. In determining eligibility, preference will be given to projects that:
   
   1. leverage or match other funds- projects that are leveraged with the largest amount of private/public dollars in comparison with CRDA dollars
      
   2. serve a greater number of people- projects that impact on the population directly and/or indirectly
      
   3. key and/or catalytic in fostering additional development- projects that stimulate additional development in the neighborhoods or target area are part of a redevelopment plan or strategy; projects that are part of a drafted or approved municipal master plan, CDBG target neighborhood, Urban Enterprise Zone, etc.
      
   4. high visibility- after the completion of the project, a blighted area or structure has been eliminated, the area shows improvements