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AN ORDINANCE AUTHORIZING AMENDMENT TWO (2) TO THE FINANCIAL AGREEMENT FOR THE TAX ABATEMENT GRANTED TO TERRELL REDEVELOPMENT PARTNERS URBAN RENEWAL, LP PURSUANT TO THE LONG TERM TAX EXEMPTION LAW FOR A PROJECT LOCATED ON REAL PROPERTY COMMONLY KNOWN AS 91-97 CHAPEL STREET, (FORMERLY 59-97 CHAPEL STREET), NEWARK, NEW JERSEY, AND IDENTIFIED ON THE CITY’S TAX MAP AS BLOCK 2442, LOT 1.02 AFTER PERFECTED BY THE ORIGINAL SUBDIVISION DEED RECORDED ON APRIL 12, 2022, TO REVISE THE ADDRESS OF THE PROPERTY AND TO EXTEND THE DEADLINE FOR THE IMPROVEMENTS TO BE CONSTRUCTED FOR THE PROJECT AS A RESULT IN CHANGE IN FINANCING.
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WHEREAS, on September 22, 2020, the City of Newark Municipal Council adopted Ordinance 6PSF-a (s) (the “Original Ordinance”, a copy of which is attached hereto as Exhibit A) authorizing a financial agreement for a thirty (30) year tax abatement granted to the Entity pursuant to the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et. seq., for a Project to construct a new five (5) story building consisting of sixty-nine (69) affordable, age-restricted rental units comprised of sixty-eight (68) units restricted to 60% of Area Median Income (“AMI”) and one (1) superintendent’s unit on real property situated at 59-97 Chapel Street (informally 35 Riverview Court), Newark, New Jersey 07105 and to be identified on the Official Tax Map of the City of Newark, as Block 2442, Lot 1.02 (the “Original Property”), which was entered into by the parties on September 28, 2021 (the “Project”); and
WHEREAS, the City and the Entity subsequently executed a financial agreement governing the Original Project (the “Original Financial Agreement”, a copy of which is attached hereto as Exhibit A); and
WHEREAS, on July 26, 2022, the City of Newark Municipal Council adopted Ordinance 6PSF-d (s) (the “First Amended Ordinance”, a copy of which is attached hereto as Exhibit B) authorizing a first amendment to the Original Tax Abatement granted to the Entity for the Project to change the New Jersey Housing and Mortgage Finance Agency Tax Credits from 9% to 4%; and
WHEREAS, the City and the Entity subsequently executed Amendment 1 to the Financial Agreement governing the Original Project (the “First Amended Financial Agreement”, a copy of which is attached hereto as Exhibit B); and
WHEREAS, the Entity perfected a subdivision of the Original Property through an original subdivision deed recorded on April 12, 2022 and the Original Property is now known as 91-97 Chapel Street, Block 2442, Lot 1.02; and
WHEREAS, the financing for the project has changed and as a result of these changes in the financing and the awarded ASPIRE financing and 4% Tax Credits from NJHMFA, the Parties desire to amend the Financial Agreement to extend the deadline for the improvements to be constructed for the Project; and
WHEREAS, the Parties desire to enter into Amendment 2 to the Original Financial Agreement, as amended, to reflect these changes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark is hereby authorized to execute, on the City’s behalf, the Amendment No. 2 to Financial Agreement in the form attached hereto as Exhibit C.
2. An executed copy of the Amendment No. 2 to Financial Agreement authorized by this ordinance shall be filed and maintained with the City Clerk.
3. The Entity shall in the operation of the Project comply with all laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin, or ancestry.
4. The Entity shall file an employment report (herein described below) with the Office of Affirmative Action who shall forthwith after receiving the report send a copy thereof to the City Clerk and the Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.
5. The adoption of this ordinance is expressly conditioned upon the requirement that the Entity pay the City all outstanding taxes and/service charges, and water/sewer charges within thirty (30) days of the date of the adoption of this ordinance. If the Entity fails to timely satisfy these requirements, this ordinance and the approval granted herein shall be null and void.
6. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance authorizes Amendment Two (2) to the Financial Agreement for the tax abatement granted to Terrell Redevelopment Partners Urban Renewal, LP One Parker Plaza, Fort Lee, New Jersey 07024, pursuant to the Long Term Tax Exemption Law N.J.S.A. 40A:20-1 et. seq., to revise the address of the Property as a result of the recording of a subdivision deed on April 12, 2022 and extend the deadline for the improvements to be constructed for the Project as a result in a change in financing.
EXHIBIT A
ORIGINAL ORDINANCE AND
ORIGINAL FINANCIAL AGREEMENT
EXHIBIT B
FIRST AMENDED ORDINANCE AND
AMENDMENT NO. 1 TO FINANCIAL AGREEMENT
EXHIBIT C
AMENDMENT NO. 2 TO FINANCIAL AGREEMENT