TRENTON – The Economic Development Authority on Tuesday approved a measure to restructure its bond closing fee policy, which has remained the same for 15 years.
The policy calls for removing the $300,000 cap on the fees charged on what CEO Michelle Brown described as multijurisdictional projects, or public-private partnerships.
Officials said the current cap does not adequately compensate the state for the level of work that’s performed.
EDA memos state that unlike traditional bonds, transactions involving public-private partnership projects, or P3s, “involve activities not usually undertaken in traditional EDA bonding.”
It listed things such as asset valuation, contract negotiation, risk assessment, revenue stream development and feasibility analysis.
EDA Board Chairman Al Koeppe described the policy change as “long overdue,” adding that other governmental bond issuers have adopted similar changes.