State program

CAFE — Cultural Arts Facilities Expansion

A New Jersey Economic Development Authority tax credit program for capital projects at arts and cultural venues. It matters here because Asbury Park's waterfront includes cultural arts facilities — Convention Hall, the Paramount Theatre, the Casino complex — and because a CAFE application requires a letter of support from the municipality, which puts the question in front of the City Council.

The basics

Program terms as published by NJEDA. Figures are the program's stated limits, not a description of any particular project.

Administered by: New Jersey Economic Development Authority (NJEDA)
Benefit: Transferable state tax credits, up to 100% of eligible project costs
Minimum project size: $5,000,000 in capital investment
Maximum award: $75,000,000
Selection: Competitive application rounds, scored against published criteria
Application status: Closed. NJEDA is reviewing Round 1 and Round 2 applications.

NJEDA describes the program's goals as elevating arts and culture within the state economy, attracting visitors, increasing the number of arts and cultural experiences available to residents and visitors, and promoting equitable engagement with the arts for underrepresented groups and underserved communities. The credits are transferable, meaning an awardee may sell them.

Who can apply, and on what conditions

The applicant must be a cultural arts institution: a government entity, a nonprofit whose primary mission is arts and culture, a not-for-profit government economic or community development entity, or a for-profit business receiving a federal or state historic rehabilitation tax credit.
The applicant must own or lease space in the facility and operate it for at least five years after construction.
The facility must be open to the public. Facilities predominantly used for athletics, recreation, or non-arts community use do not qualify.
The applicant must demonstrate that a project financing gap exists.
The applicant must hold a letter of support from the chief executive (mayor) or governing body (city council) of the municipality where the project sits.
Construction must not begin before the application is submitted, subject to narrow exceptions set out by NJEDA. Demolition and environmental remediation may occur earlier but are not eligible costs if performed before application.
The project must include at least 20% equity (10% in Atlantic City, Paterson, and Trenton).
The project must meet minimum green building standards, pay prevailing wages to construction and building services workers, and support Work First NJ participants.
The project must receive a temporary certificate of occupancy within four years of executing the tax credit agreement.

NJEDA defines a "cultural arts institution facility" to include an aquarium, botanical society, historical society, library, museum, gallery, performing arts center, arts-based community center, or a related facility principally supporting one of those.

The adopted rules

NJEDA's rules for the program are codified at N.J.A.C. 19:31BB and were published in the New Jersey Register on July 21, 2025. They implement the New Jersey Cultural Arts Incentives Program Act, P.L. 2023, c. 197 (N.J.S.A. 34:1B-383 through 393).

Dates and periods in the rules

Eligibility determinations are made for applications submitted prior to March 1, 2029.
The "eligibility period" is five years, beginning with the tax period in which NJEDA accepts the institution's certification that it met the capital investment requirements.
Awards are made through a competitive process with at least one award round each year; NJEDA sets the scoring weights and minimum score before each round and posts them publicly.
An award may not exceed 100% of eligible project costs, and not more than $75,000,000 per project.

Sections of N.J.A.C. 19:31BB

19:31BB-1.1Applicability and scope
19:31BB-1.2Definitions
19:31BB-1.3Eligibility criteria
19:31BB-1.4Application submission requirements
19:31BB-1.5Fees
19:31BB-1.6Project financing gap
19:31BB-1.7Review, scoring, and approval; tax credit amounts
19:31BB-1.8Approval letter; tax credit agreement
19:31BB-1.9Reporting requirements and annual report
19:31BB-1.10Reduction, forfeiture, and recapture of tax credits
19:31BB-1.11Application for tax credit transfer certificate
19:31BB-1.12Effect of sale or lease of qualified facilities
19:31BB-1.13Affirmative action and prevailing wage
19:31BB-1.14Appeals

Scoring criteria

N.J.A.C. 19:31BB-1.7(d). The scoring system is developed by NJEDA in consultation with the New Jersey State Council on the Arts, and the listed criteria are a floor, not a complete list.

01The amount of tax credits requested compared to the amount required to complete the project.
02How the project advances State, regional, and local goals for arts and cultural facilities in underserved communities.
03The relationship of the project to a comprehensive local development strategy adopted as of the time of application, including its relation to other development and redevelopment projects in the municipality.
04The degree to which the project enhances and promotes job creation and economic development in the municipality and the immediate surrounding area.
05The extent of economic and related social distress in the municipality and the immediate surrounding area, including whether the project sits in a qualified incentive tract.
06The quality and number of new full-time jobs created at the institution.
07If the institution has a board of directors, the extent to which that board is diverse and representative of the community where the project is located.
08A detailed plan to make the applicant's exhibitions, performances, events, and educational offerings affordable and available to the general public.

Criterion three — the project's relationship to a comprehensive local development strategy adopted as of the time of application, and its relation to other development and redevelopment projects in the municipality — is the point at which the Waterfront Redevelopment Plan record would enter a CAFE application.

Fees

Tiered by total project cost. All fees are non-refundable. NJEDA may also assess the cost of third-party review to the applicant.

Fee	Under $20M project	$20M and over
Application fee	$5,000	$10,000
Approval fee	$15,000	$30,000
Issuance / certification fee	$25,000	$50,000
Annual servicing fee	$10,000	$25,000
Transfer / assignment fee	$5,000	$7,500
Minor modification	$2,500	$5,000
Major modification	$5,000	$10,000
Six-month extension (post-agreement)	$2,500	$5,000
Termination fee	$5,000	$10,000

Awards to date

Board actions announced by NJEDA. No Asbury Park award appears in these announcements.

November 2025
NJEDA Board approved the first CAFE awards, supporting institutions in Jersey City and Morristown.
May 2026
Board approved an award for the New Jersey Symphony's permanent home at the Powerhouse Arts District in Jersey City.
June 2026
Board approved an award for the Montclair Public Library.
July 2026
Board approved awards for the Center for Creativity at the Rialto in Westfield and a project in Millburn.

How projects get financed

CAFE is one mechanism among several. Major historic and cultural projects are usually financed by assembling a stack of sources, each with different rules. A tax credit is not a grant, a tax-exempt bond is debt, and a bridge loan may only advance proceeds another source will repay. The examples below separate those mechanisms as reported in public records.

Tax credits

A credit against tax liability — federal or state historic rehabilitation credits (HTC), New Markets (NMTC), Low-Income Housing (LIHTC), or a state program such as CAFE, HPRP, or ERG.

A credit is not cash. Transferable credits are sold to investors, often below face value; the New Jersey Symphony board materials contemplate roughly $0.89 per $1.00 of credit.

Tax-exempt bonds and public debt

Borrowing through a public issuer — an economic development authority, a housing finance agency, or a municipality — at tax-advantaged rates.

Bonds are debt that must be repaid. A refunding bond refinances existing debt rather than adding new construction cash.

Direct grants and public capital

Appropriated money from a city, county, state, or federal agency, or a preservation grant such as Preserve New Jersey or Save America's Treasures.

This is the only category that is straightforwardly money in, with no repayment or monetization step.

Philanthropy and private capital

Donor campaigns, foundation and corporate gifts, naming and sponsorship, limited-partner equity, and conventional loans.

Campaign totals are often pledged over years, and headline gifts are usually inside the campaign total rather than on top of it.

Bridge financing

Short-term debt that advances proceeds expected later from tax-credit sales, grants, or pledges.

A bridge loan is not an additional source. It is timing: it fronts money that other sources will repay.

Which mechanisms actually appeared

Categorical comparison across twelve projects. A dash means the reviewed sources did not establish that mechanism, not that it was legally unavailable.

Project	Federal / state historic credits	CAFE / other state credits	NMTC / LIHTC	Bonds / public debt	Grants / public capital	Philanthropy / private
Count Basie	No HTC identified	—	—	$8M NJEDA bond (2008); 2017 refinance / new bond	NJ Cultural Trust + Preserve NJ grants	Major campaigns, donors, naming / sponsorship
Loew's Jersey	$19.57M Federal HTC	$42.27M NJ HPRP	—	—	Major City / County / State investment	Private tax-credit equity / operator structure
Kings Theatre	Federal + NY State rehab credits	—	Federal NMTC	—	Major NYC / NY State capital	Goldman / ACE / NDC consortium
Saenger	$10.09M Fed HTC + $15.43M State HTC	—	$11.89M NMTC equity	Loans / other $12.74M	—	Included in loans / other
Carolina Theatre	No HTC identified	—	—	—	Federal + State + County + City contributions	Corporations + foundations + individuals
Electric Works	$41M Fed HTC	$60M state credits	$51M NMTC	City bond financing	Public / private partnership sources	$22M LP capital + other private
Hahne & Co.	$20.5M HTC	$28.5M NJ ERG	$13.2M LIHTC; NMTC also used	$66.8M NJHMFA conduit financing	—	$46.5M other equity / loans
Milwaukee Soldiers Home	$6.9M Fed HTC equity + $6.7M State HTC equity	—	Hybrid 9% + 4% LIHTC	$15M tax-exempt bonds + $12M construction financing	Housing Trust / Save America's Treasures / other public	$3M donor campaign + foundations
Cincinnati Music Hall	$45M Ohio + Federal HTC equity	Ohio preservation catalytic credit	—	$62.5M bridge loan	City + State capital grants	$65M major donor commitments
Apollo Theater	$14.8M Fed + State HTC	—	NMTC allocations	$25M bridge debt + $9M HTC bridge	$20.7M grant commitments	Includes $5M SiriusXM grant + campaign support
Montclair Library	—	Up to $36.66M CAFE	—	—	—	Other project sources not fully itemized
NJ Symphony Center	—	Up to $29.04M CAFE	—	—	—	CAFE monetization + other sources not fully itemized

Project by project

01Count Basie Center for the ArtsRed Bank, New JerseyMultiple capital phases, including an $8M 2008 interior rehabilitation and later campus expansionOpen

Tax credits

No federal or state historic rehabilitation tax credit was identified in the public sources reviewed for the major Basie capital phases.

Grants / direct public capital

$50,000 New Jersey Cultural Trust Capital Preservation Grant (2009) for exterior and facade restoration.
$147,900 Preserve New Jersey Historic Preservation Fund grant (2016) for roof and masonry stabilization.

Bonds / debt financing

$8.0M NJEDA 501(c)(3) tax-exempt bond closed in 2008, funding the third phase of the renovation including interior plaster restoration and upgrades.
2017 NJEDA financing included an approximately $2.04M tax-exempt bond to refinance conventional debt and reimburse renovation costs, plus an approximately $6.47M refunding bond tied to the outstanding 2008 bond. The refunding portion is refinancing, not new construction cash.

Other capital / philanthropy

Later campus expansion relied heavily on philanthropy, major donors, naming and sponsorship, and campaign fundraising. Public sources reviewed do not provide one complete sources-and-uses schedule for that expansion.

Other public support, not construction capital

Recurring New Jersey State Council on the Arts support and federal arts grants are operating and program support, not part of the construction stack.

Why it matters

A strong example of tax-advantaged nonprofit bond financing plus smaller preservation grants layered with long-term philanthropy. It is not a historic-tax-credit precedent.

Source basis

NJEDA 2008 Annual Report; NJEDA June 13, 2017 Board Book; NJ Historic Trust Count Basie grant records; Count Basie Center expansion materials.

02Loew's Jersey TheatreJersey City, New Jersey$130M current revitalization referenceOpen

Tax credits

$42.27M New Jersey Historic Property Reinvestment Program (HPRP) tax credit award.
$19.57M federal Historic Tax Credits generated, with NTCIC reporting an equity investment in those credits.

Grants / direct public capital

Major City, County, and State investment in a city-owned theater.

Other capital / equity

Private tax-credit equity within an operator structure.

Why it matters

The closest New Jersey example of combining a large State historic tax credit with federal HTC equity and major local and public investment in a city-owned theater.

Source basis

NJEDA HPRP approval, Oct. 12, 2022; NTCIC Loew's Jersey Theatre project profile.

03Kings TheatreBrooklyn, New YorkApproximately $95M restorationOpen

Tax credits

Federal and New York State Rehabilitation Tax Credits were part of the financing.
Public project records also identify federal New Markets Tax Credit financing.

Grants / direct public capital

Substantial direct public capital from New York City and New York State. Contemporary accounts place public funding at roughly half or more of total project cost.

Other capital / equity

Private consortium investment including Goldman Sachs, ACE Theatrical Group, and NDC.

Why it matters

A large historic theater can combine direct municipal and state capital, federal and state rehabilitation credits, NMTC, and private consortium investment under continued public ownership.

Source basis

NYC Kings Theatre FEIS; New York State Historic Preservation Award materials; Gilbane / Kings Theatre financing release; Grow America project materials.

04Saenger TheatreNew Orleans, Louisiana$50.16M NPS project budget reference, often reported publicly at roughly $52–53MOpen

Tax credits

$10.09M federal Historic Tax Credit equity.
$15.43M Louisiana State Historic Tax Credit equity.

Other capital / equity

$11.89M federal New Markets Tax Credit equity.
$12.74M in loans and other sources.

Why it matters

One of the clearest theater stacks: federal HTC plus state HTC plus NMTC plus debt. The ownership and leaseback structure helped make the preservation financing possible.

Source basis

National Park Service, Federal Historic Preservation Tax Incentives Economic Impact Report, Saenger project profile.

05Carolina Theatre at Belk PlaceCharlotte, North Carolina$90M final restoration referenceOpen

Tax credits

No historic tax credit financing was identified in the public project funding schedule reviewed.

Grants / direct public capital

As of November 2023, City of Charlotte materials reported $750,000 federal support, $7.0M State of North Carolina, $4.2M Mecklenburg County, and $4.5M City of Charlotte within $73M already raised.
The same 2023 City Council item authorized an additional $2.0M City contribution because of cost escalation and delays.

Other capital / philanthropy

Private fundraising reported in the same City materials: $13.0M corporations, $31.55M foundations, $12.0M individuals.
An $8M Belk family gift was a major early commitment within the broader campaign history, not an additional category on top of the reported totals.

Why it matters

A major theater can be funded primarily through philanthropy plus direct federal, state, county, and city contributions, without a tax-credit-heavy stack.

Source basis

City of Charlotte Nov. 13, 2023 Council materials; Foundation For The Carolinas Carolina Theatre and Belk Place materials.

06Electric WorksFort Wayne, Indiana$286M public-private district redevelopmentOpen

Tax credits

$41M federal Historic Tax Credits.
$60M state tax credits.

Bonds / debt financing

City of Fort Wayne bond financing was part of the stack; the public NTCIC summary reviewed does not separately state the bond amount.

Other capital / equity

$51M in New Markets Tax Credit allocations from five CDEs, including $12.5M from NTCIC.
$22M in limited-partner capital, plus additional public and private financing to close the remaining sources.

Why it matters

A district-scale adaptive-reuse project can combine federal HTC, state credits, NMTC, municipal bonds, and private equity in one coordinated transaction.

Source basis

NTCIC Electric Works / Indiana project profile.

07Hahne & Co. / Express NewarkNewark, New Jersey$175.5M HUD financing referenceOpen

Tax credits

$13.2M federal Low-Income Housing Tax Credits.
$20.5M Historic Tax Credits.
$28.5M NJEDA Economic Redevelopment and Growth (ERG) tax credits.

Bonds / debt financing

$66.8M NJHMFA financing through the Multifamily Conduit Bond Program.

Other capital / equity

$46.5M in other equity and loans.

Why it matters

A New Jersey mixed-use rehabilitation can layer housing bonds, LIHTC, federal historic credits, State redevelopment tax credits, private equity and debt, and embedded institutional arts space.

Source basis

HUD USER Hahne case study; NJHMFA Hahne project releases; ULI Hahne financing profile.

08Milwaukee Soldiers HomeMilwaukee, Wisconsin$44M rehabilitationOpen

Tax credits

Hybrid 9% and 4% federal LIHTC, federal Historic Tax Credits, and Wisconsin State Historic Tax Credits.
Novogradac reports $6.9M federal HTC equity and $6.7M state HTC equity.

Grants / direct public capital

$1.5M Federal Housing Trust Fund financing and $50,000 Federal Capital Magnet Fund financing within WHEDA's package.
National Park Service Save America's Treasures grant funding, Military Construction Funds, housing trust funds, and other grant and soft-financing sources.

Bonds / debt financing

$15M WHEDA tax-exempt bond financing.
$12M short-term construction financing from WHEDA.

Other capital / philanthropy

WHEDA reports a $30M total investment across its financing tools.
A $3M capital campaign drew support from more than 650 donors and organizations.

Other public support, not construction capital

HUD-VASH rental assistance supports the long-term operating model, not construction.

Why it matters

A highly complex preservation project can layer affordable-housing tax credits, historic credits, tax-exempt bonds, federal grants, soft financing, and philanthropy across 13 capital sources.

Source basis

WHEDA Milwaukee Soldiers Home profile; National Trust case study; ACHP / HUD; The Alexander Company; Novogradac HTC award profile.

09Cincinnati Music HallCincinnati, Ohio$143M completed renovationOpen

Tax credits

$45M in Ohio and federal Historic Tax Credit equity.

Grants / direct public capital

Capital from the City of Cincinnati and the State of Ohio through the Ohio Facilities Construction Commission.
3CDC also reports a Historic Preservation catalytic tax credit through the Ohio Development Services Agency.

Bonds / debt financing

$62.5M bridge loan.

Other capital / philanthropy

$65M in major philanthropic commitments was already in place when financing closed, with roughly $3M still to raise at that point.

Why it matters

A nonprofit developer can coordinate public grants, state and federal HTC equity, a major philanthropic campaign, and bridge debt while the City retains ownership.

Source basis

3CDC, “Music Hall Financing in Place,” Oct. 2016; 3CDC Music Hall reopening and project materials.

10Apollo Theater RenovationHarlem, New York$64.5M renovationOpen

Tax credits

$14.8M in federal and State Historic Tax Credits generated by the project, with NTCIC providing tax-credit equity investment.

Grants / direct public capital

$20.7M in grant commitments reported by NTCIC, including a $10M Empire State Development grant and a $5M SiriusXM grant, along with support from the NYC Department of Cultural Affairs and others.

Bonds / debt financing

$25M bridge debt plus $9M HTC bridge.

Other capital / equity

$8M NTCIC New Markets Tax Credit allocation and $4.9M J.P. Morgan NMTC allocation. NTCIC also reports an additional NYCEDC NMTC allocation, but the amount is misrendered in the public page and is not repeated here.

Why it matters

A nonprofit cultural institution can layer HTC equity, NMTC, direct public and private grants, and bridge debt in a single renovation closing.

Source basis

NTCIC Apollo Theater project profile and July 8, 2025 financing announcement.

11Montclair Public Library & Cultural CenterMontclair, New JerseyCAFE-supported library and cultural-facility expansionOpen

Tax credits

NJEDA approved CAFE tax credits equal to 100% of eligible project costs, not to exceed $36,661,719.

Why it matters

CAFE can function as the dominant financing-gap tool for a qualifying New Jersey cultural facility, but the face-value award should not be described as cash proceeds until credit monetization is resolved.

Source basis

NJEDA June 10, 2026 Board Book; NJEDA June 16, 2026 Montclair CAFE press release.

12New Jersey Symphony CenterJersey City, New Jersey$31.03M total project-cost reference; $29.04M CAFE-eligible cost after program caps and adjustmentsOpen

Tax credits

NJEDA approved CAFE tax credits equal to 100% of eligible project costs, not to exceed $29,040,311.

Other capital / equity

The NJEDA Board Book notes proposed terms to sell the CAFE credits at approximately $0.89 per $1.00 of credit — a reminder that transferable-credit face value and cash proceeds are not identical.
The public CAFE materials reviewed do not provide one complete final closing stack for every non-CAFE dollar.

Why it matters

A CAFE award can cover nearly all eligible cultural-facility costs, while actual project cash depends on credit monetization and the treatment of ineligible costs.

Source basis

NJEDA May 13, 2026 Board Book; NJEDA May 14, 2026 New Jersey Symphony CAFE press release.

Reading rule: do not add bridge loans, refunding bonds, headline public-investment totals, and tax-credit face values together without tracing what each source actually finances. Some figures overlap, some are temporary debt, and transferable tax credits may monetize below face value.

Projects are included where public sources allow a meaningful financing breakdown. Compiled from the sources named on each project.

Where it touches the Asbury Park record

Convention Hall and the Paramount Theatre are cultural arts facilities on the waterfront, held under the 2010 Subsequent Developer Agreement and covered by the 2004 NJSHPO historic preservation easement. Capital work at either building is the kind of project CAFE was written for, and a for-profit applicant would need a federal or state historic rehabilitation tax credit to qualify.

Two CAFE requirements create a local paper trail worth watching: the municipal letter of support, which normally arrives as a mayoral letter or a City Council resolution, and the financing-gap demonstration, which an applicant must document to NJEDA.

Anything the City adopts on this subject will show up in council agendas and resolutions. If you hold a related document — an application, a support letter, a board memo — add it to the record.

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Sources

Program terms summarized from NJEDA's published materials. NJEDA governs the program and its terms may change; the agency's page is authoritative.