This article is intended to ensure a pro rata share allocation of the costs for off-tract improvements necessitated by new development.

As a condition of final subdivision or site plan approval, the Planning Board may require an applicant for development ("Developer") to pay its pro rata share of the cost of providing reasonable and necessary circulation improvements, and water, sewerage, and drainage facilities, including land and easements, located off-tract of the property limits of the subdivision or development, but necessitated or required by the development. "Reasonable and necessary" improvements are those which bear a rational nexus to the needs created by, and benefits conferred upon, clearly, directly, and substantially related to the development in question. The Planning Board shall provide in its resolution of approval the basis of the required improvements. The capacity and design of proposed improvements shall be based upon the circulation plan element and utility service plan element of the adopted master plan. The proportionate or pro rata amount of the cost of such facilities within a related or common area shall be based on the following criteria.

The Planning Board shall determine as part of its approval process whether the off-site improvement is to be constructed by the township or the Developer. The Planning Board shall not render such determination until it receives the decision of the Township Governing Body as to whether it will undertake construction of the improvement in issue.

The Planning Board shall determine as part of its approval process, with assistance from the Township Consulting Engineer, as to whether the Developer's proportionate payment for the off-tract improvement shall be a cash deposit to the township, or by another form of bond or guarantee. In the event the payment is in the form of a bond or other type guarantee, same must be in form acceptable to the Township Solicitor.

Where the proposed off-tract improvement is to be undertaken by the township, the monies required for the improvements shall be deposited in a specially designated interest-bearing account established by the Treasurer of the township. The Treasurer shall maintain a record indicating by whom and in what amount each contribution has been made for said off-tract improvement. The Treasurer shall apportion interest on the account to each specific contribution as its balance relates to the total balance. All construction costs related to the off-tract improvement shall be paid by the Treasurer from this account. In the event any balance remains subsequent to the completion of the improvement, any Developer who has contributed to the account for that specific improvement shall be entitled to a pro rata refund, provided that a written petition is made to the township for such refund within one year of completion of the off-tract improvement. Any monies remaining following said one year time period which have not been refunded shall be applied in general to the township's capital improvement budget account. If the off-tract improvement is not commenced within fifteen (15) years of deposit, all monies and interest earned shall be returned to the applicant.

The Planning Board may, as a condition of any approval, require the applicant to install a public improvement of greater size or capacity than required to service the applicant's project. Such approval shall provide that the applicant is entitled to reimbursement to a maximum amount equal to the difference between the amount of such cost and expense paid by the Developer and the Developer's pro rata share of the cost of such improvement. In such a case, the township shall determine all property specially benefitted by the improvement and of the value of the special benefit to each such property in accordance with the provision set forth hereinabove. The township shall then assess all properties, other than the property of the Developer, specially benefitting from installation of any off-tract improvement in a manner similar to that for local improvements. Principal amounts received by the township from such assessments, together with interest from property owners who have elected to pay for said assessments over a period of years, shall be credited to the real estate account of the Developer's property. In the case where there has been an apportionment of cost against the township for the required off-tract improvement then the township shall pay its portion of costs to the Developer not more than four (4) months after the completed improvements have been approved by the Township Engineer. In the event of any default in payment of an assessment levied by the township as set forth hereinabove, then the township shall exercise its remedies as elsewhere provided; and, if thereafter the balance of principle and interest due upon the subject assessment has not been fully satisfied by payment to the township and credit thereof given to the real estate account of the Developer's property, then the township shall forthwith pay said balance remaining due to the Developer, or his successor in interest.

The Developer shall enter into an Off-Tract Improvement Agreement with the township setting forth the terms and conditions for construction of the off-tract improvements required to service the applicant's project as further set forth in the Preliminary Approval Resolution of the Township Planning Board. Final approval shall not issue to the Developer until such time as the Off-Tract Improvement Agreement has been executed by the Developer and the township.