Articles Posted in Supreme Court of New Jersey

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In this appeal, the New Jersey Supreme Court considered whether the 2000 and 2001 financial agreements between plaintiffs EQR-Lincoln Urban Renewal Jersey City, LLC (EQR-Lincoln), and EQR-LPC Urban Renewal North Pier, LLC (EQR-North Pier), and defendant, the City of Jersey City (City), incorporated 2003 amendments to the Long Term Tax Exemption (LTTE) Law, N.J.S.A. 40A:20-1 to -22. Plaintiffs were limited liability companies that qualified as urban renewal entities under the LTTE Law. Each plaintiff entered into a separate financial agreement with the City to obtain a property tax exemption relating to an urban renewal project involving construction of an apartment building. Among other things, the financial agreements required plaintiffs to pay the City an “annual service charge” in lieu of property taxes. Plaintiffs filed a two-count complaint seeking a declaratory judgment against the City seeking: (1) a judgment declaring that the applicable law and financial agreements permitted plaintiffs to pay “excess rent” to affiliated entities under certain ground leases, with the effect of eliminating the “excess net profit” that plaintiffs might otherwise owe to the City; and (2) a judgment declaring that the parties’ financial agreements incorporated future changes to applicable law, such that plaintiffs could calculate their “allowable profit rate” in accordance with the 2003 amendments to the LTTE Law. The trial judge granted partial summary judgment on Count II, reasoning that the express language of the contract, “as amended and supplemented,” demonstrated that the parties agreed to incorporate future amendments to the LTTE Law in their financial agreements. The trial judge further concluded that the 2003 amendments to the LTTE Law applied to the financial agreements, and that legislative history supported his conclusions. The trial judge denied the City’s motion for reconsideration. The Appellate Division reversed, finding LTTE Law did not sanction plaintiffs’ unilateral changes to their financial agreements. The Supreme Court affirmed the Appellate Division. View "EQR-LPC Urban Renewal North Pier, LLC v. City of Jersey City" on Justia Law