Title
Dept./ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Resolution of Support
Purpose: To provider Municipal Council support, for the submission of an application, for tax credits sought by Developer, under the NJ Aspire Tax Credit Program to the New Jersey Economic Development Authority
Entity Name: Pacific Apartments Ventures, LLC
Entity Address: c/o Millbrook Realty Group, LLC, 546 Fifth Avenue, 6th Floor, New York, New York 10036
Total Project Cost: $35,471,007.00
City Contribution: $0.00
Other Funding Source/Amount: Traditional debt financing and equity funding
Grant Period: Ten (10) years - Tax Credit Period, from project completion date
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property
(Address/Block/Lot/Ward
164-184 Pennington Street/Block 932/Lot 1/East Ward
Additional Information:
body
WHEREAS, Pacific Apartments Ventures, LLC (the “Developer”), proposes the rehabilitation of an existing 100% affordable family housing project consisting of 80 residential units, of which 16 will be one-bedroom units, 40 two-bedroom units, and 24 three-bedroom units, to substantially renovate the apartment units, buildings, and systems that will modernize the buildings, preserve the affordability of the project, and provide social services through the Ironbound Community Corporation, at the property located at 164-184 Pennington Street, Newark, New Jersey, Block 932, Lot 1, in the City of Newark, County of Essex, New Jersey (hereinafter referred to as the “Project”); and
WHEREAS, in connection with the financing of the Project, the Developer is applying to the New Jersey Economic Development Authority (the “NJEDA”) for tax credits under the newly created Aspire Tax Credit Program (the “Funds”), which was authorized by the New Jersey Economic Recovery Act of 2020 (Sections 54 through 67 of P.L. 2020, c. 156 and later amended by Sections 22 through 29 of P.L. 2021 c. 160); and
WHEREAS, the NJEDA’s underwriting requirements for the Funds align with the City of Newark’s objectives in multiple ways, including a twenty percent (20%) affordable housing set aside for new construction, the use of prevailing wage and affirmative action protocols in connection with both construction of the Project and post-construction building services, and the need for applicants to enter into a community benefits agreement with the host municipality for projects with a total project cost of $10 Million or more; and
WHEREAS, pursuant to NJEDA regulations, all applicants for Funds under the Aspire Tax Credit Program are required to obtain a Resolution of Support from the governing body of the host municipality; and
WHEREAS, pursuant to NJEDA regulations, the Newark Municipal Council (“Municipal Council”) hereby determines that there is a need for this Project in the City of Newark; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development recommends that the Municipal Council support the application as it relates to the Funds; and
WHEREAS, pursuant to the requirements of the NJEDA, the Municipal Council, the Governing Body of the City, hereby supports the application submitted by the Developer.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1) The Newark Municipal Council (“Municipal Council”) supports the Project, the rehabilitation of an existing 100% affordable family housing project consisting of 80 residential units, of which 16 will be one-bedroom units, 40 two-bedroom units, and 24 three-bedroom units, to substantially renovate the apartment units, buildings, and systems, to modernize the buildings and preserve the affordability of the project, and provide social services through the Ironbound Community Corporation, as proposed by Pacific Apartments Ventures, LLC (the “Developer”), located at 164-184 Pennington Street, Newark, New Jersey (Block 932, Lot 1), in its submission of an application for tax credits under the Aspire Tax Credit Program (the “Funds”) to the New Jersey Economic Development Authority (“NJEDA”).
2) The submission of the application and support of the Municipal Council of the same is hereby ratified from the date of Developer’s submission of the application for the Funds to the date of adoption of this Resolution.
3) The Municipal Council does hereby adopt the within Resolution and supports the application for Funds, pursuant to and in conformity with the NJEDA requirements for the Funds.
STATEMENT
Resolution, wherein the Newark Municipal Council supports the application for tax credits under the Aspire Tax Credit Program being submitted by the Developer to the New Jersey Economic Development Authority (“NJEDA”) and ratifies the within from the date of Developer’s submission of the application for the funds to the date of adoption of this Resolution.