Title
AN ORDINANCE GRANTING A THIRTY (30) YEAR TAX ABATEMENT TO BERGEN STREET REDEVELOPMENT, LLC, THE OWNER OF A PROJECT CONSISTING OF THE CONSTRUCTION OF TWO (2) MIXED USE BUILDINGS CONTAINING A TOTAL OF SIXTY-SIX (66) AFFORDABLE HOUSING UNITS, PARKING AND COMMERCIAL SPACE LOCATED AT 1037-1047 AND 1057-1059 BERGEN STREET AND IDENTIFIED ON THE OFFICIAL TAX MAP OF THE CITY AS BLOCK 3660, LOT 11 AND BLOCK 3661 LOTS 3 (5 AND 8) SOUTH WARD.
body
WHEREAS, Bergen Street Redevelopment, LLC, 953 Bergen Street, Newark, New Jersey, 07112, (the “Entity”) filed an application with the Mayor seeking a long term tax abatement pursuant to New Jersey Housing and Mortgage Finance Agency Law, N.J.S.A. 55:14K-1 et seq. (“HMFA Law”) for a term of thirty (30) years for the construction of two (2) mixed-use buildings containing a total of sixty-six (66) affordable housing units, parking and commercial space located at 1037-1047 and 1057-1059 Bergen Street, Newark, New Jersey 07112 and identified on the official tax map of the City as Block 3660, Lot 11 and Block 3661, Lots 3 (5 and 8) (the “Project”); and
WHEREAS, the Mayor has submitted the application and proposed Financial Agreement to the Municipal Council with his recommendation thereof, a copy of which is annexed hereto; and
WHEREAS, in accordance with Ordinance 6PSF-a 050411 adopted May 4, 2011, the Entity has filed with the City a sworn statement that it has not made any contribution in violation of said ordinance; and
WHEREAS, in accordance with Resolution 7R3-b 12-1860, the City and the Entity have entered into that certain Agreement for the Sale of Land and Redevelopment (the “Purchase Agreement”) whereby the City shall sell the above referenced property to the Entity; and
WHEREAS, the Municipal Council has determined that the relative benefits of this Project outweigh any costs associated with this tax abatement and that without the tax abatement granted herein, the Project would not be undertaken.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Upon the sale of the property, 1037-1047 and 1057-1059 Bergen Street, Newark, New Jersey 07112, in accordance with the Purchase Agreement, the Mayor of the City of Newark is hereby authorized to execute, on the City’s behalf, the Financial Agreement in the form attached hereto.
2. An executed copy of the Financial Agreement authorized by this ordinance shall be filed and maintained with the City Clerk.
3. The Project, located at 1037-1047 and 1057-1059 Bergen Street, Newark, New Jersey 07112, when completed, will conform with all State laws and ordinances of the City of Newark relating to its construction and use.
4. The term of the tax abatement shall be thirty (30) years from the Annual Service Charge Start Date (as defined in the Financial Agreement), but shall not extend beyond the date in which the HMFA loan for the Project is paid in full, and the Entity shall be subject to the provisions and conditions of the HMFA Law and the Financial Agreement annexed hereto.
5. The Project is approved subject to any approvals that may be required by the Department of Community Affairs of the State of New Jersey (“DCA”) and the HMFA.
6. The Affirmative Action Program now on file in the Office of the City Clerk is declared to be a material condition of the Financial Agreement authorized by this ordinance.
7. The Entity shall, in the operation of the Project, comply with all applicable laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin or ancestry.
8. 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. The Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.
9. As of the Annual Service Charge Start Date, the Entity shall pay an estimated quarterly service charge to the City until the correct amount due from the Entity is determined by the City’s Acting Director of Finance based upon the auditor’s report that is required to be submitted under the Amended Financial Agreement. After the auditor’s report required under the Amended Financial Agreement has been accepted by the City’s Acting Director of Finance, and within 90 days thereafter, the City and the Entity will adjust any over or under payment so made or needed to be made for the particular period covered by the auditor’s report.
10. The annual service charge shall be equal to 6.28% of the Annual Gross Revenue generated from the Affordable Housing Units and 15% of all other income generated by the Project.
11. The following occurrences and requirements are express conditions of the granting of this tax abatement, to be performed by the Entity, and the failure to comply with these requirements will result in the cancellation of the tax abatement:
(a) Entity shall pay full taxes on the land and improvements (designated as Block 3660, Lot 11 and Block 3661, Lots 3 (5 and 8) until the annual service charge becomes effective;
(b) Entity shall not, without prior consent of the Municipal Council of the City of Newark, sell, lease, assign, encumber, subordinate, convey, mortgage or transfer all, or any part of the Project, so as to sever, disconnect or divide the improvements from the land embraced within the Project;
(c) Entity shall, pursuant to the Revised City Ordinance 10:24-1 et seq., as amended, be deemed to agree that if Entity operates, controls or manages the Project that it will make its Best Efforts (as defined in the Financial Agreement) to achieve the goal of having 51% of all new jobs arising out of the businesses conducted on the Project site after the issuance of the Certificate of Occupancy and during the continuation of the tax exemption, dedicated to Newark residents, of which a goal of 51% of such all new employees shall be minority residents;
(d) Entity shall concomitantly, with the required submission of the annual report, attach an employment report under oath, with particulars, stating the manner and the extent to which it has complied with 11(c) above. This employment report shall be filed with the Acting Director of Finance, the City Clerk of the City of Newark, and the Deputy Mayor/Director of the Department of Economic and Housing Development;
(e) Entity shall pay all outstanding taxes and all outstanding water and sewer charges within thirty (30) days of the adoption of this ordinance;
(f) Entity shall receive a favorable review and certification from the appropriate municipal departments and agencies, pursuant to Municipal Ordinance 6S&FD October 21, 1992, as amended;
(g) Entity shall secure all financing prior to the commencement of any construction.
12. The Entity shall submit to the City of Newark’s Department of Economic and Housing Development or its assigned agent all documentation which it is required to submit and maintain in accordance with the terms and conditions of the financing to be provided by the HMFA and the DCA and all other sources of funding received.
13. The Entity shall submit to the City of Newark’s Law Department and Department of Economic and Housing Development copies of the mortgage and all other loan documents executed between the Entity and the HMFA within 30 days of the closing.
14. The City Clerk’s Office of the City of Newark shall forthwith submit a certified copy of this Ordinance approving the Financial Agreement to the Director of the Division of Local Government Services.
STATEMENT
This Ordinance grants a long term tax abatement to Bergen Street Redevelopment, LLC, 953 Bergen Street, Newark, New Jersey 07112, under the HFMA Law for a term of thirty (30) years for the construction of two (2) mixed-use buildings containing a total of sixty-six (66) affordable housing units, parking and commercial space located at 1037-1047 and 1057-1059 Bergen Street, Newark, New Jersey 07112 and identified on the official tax map of the City as Block 3660, Lot 11 and Block 3661, Lots 3 (5 and 8) South Ward.