Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Resolution Endorsing
Purpose: Resolution of the Municipal Council Consenting to the Transfer of Membership Interest in Essex Plaza Owner One, LLC.
Additional Information:
Ordinance 6PSF-j(s) adopted on July 20, 2021.
body
WHEREAS, Essex Plaza Owner One, LLC (the “Entity”) previously applied for a tax exemption pursuant to the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended and supplemented, N.J.S.A. 55:14K-1 et seq. (the “HMFA Law”), for a project to acquire and substantially renovate an existing eight (8) story building consisting of four hundred fifty (450) senior affordable housing rental units (the “Housing Units”), and on-site community and medical facilities, located on real property commonly known as 1056-1070 Broad Street and 1048-1054 Broad Street, Newark, New Jersey 07102 and identified on the Official Tax Map of the City of Newark, as Block 892, Lots 1 and 16 (collectively, the “Project”); and
WHEREAS, on July 20, 2021, the Municipal Council adopted Ordinance 6PSF-j(s) granting a thirty (30) year tax abatement for the Project and authorizing the execution of the “Financial Agreement” (the “Agreement”) memorializing the terms and conditions applicable to the tax exemption; and
WHEREAS, the Entity participated in the HMFA’s Low Income Housing Tax Credit Program (“LIHTC Program”); and
WHEREAS, currently Essex Plaza Owner One MM, LLC (“Sole Member”) owns 100% of the membership interest in the Entity; and
WHEREAS, the Sole Member is seeking to transfer 99.99% of its membership interest in the Entity to GSB LIHTC Investor, LLC as the tax credit investor; and
WHEREAS, as required by Article IX of the Agreement, the Entity is requesting the City’s consent to such transfers.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City hereby consents to Essex Plaza Owner One, LLC’s (“Entity”) transfer of the membership interest of Essex Plaza Owner One MM, LLC (“Sole Member”), currently having 100% membership interest, to GSB LIHTC Investor, LLC (“Tax Credit Investor”), for a thirty (30) year tax abatement, pursuant to the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended and supplemented, N.J.S.A. 55:14k-1 et seq., for a Project to acquire and substantially renovate an existing eight (8) story building consisting of four hundred fifty (450) senior affordable housing rental units (the “Housing Units”) and on-site community and medical facilities, located on real property commonly known as 1056-1070 Broad Street and 1048-1054 Broad Street, Newark, New Jersey 07102 and identified on the Official Tax Map of the City of Newark, as Block 892, Lots 1 and 16 (collectively, the “Project”).
2. The resulting membership interest of the Entity shall be GSB LIHTC Investor, LLC, having 99.99% interest, and Essex Plaza Owner One MM, LLC, have 0.01% membership interest. Such transfer of ownership of the Entity, as set forth herein and reflected in the attached organizational chart is hereby approved.
3. The Entity shall submit a copy of its amended Certificate of Formation filed with the Secretary of the State of New Jersey to the City of Newark.
4. All provisions of Ordinance 6PSF-j(s), adopted on July 20, 2021, and the terms and conditions of the Financial Agreement shall remain in effect.
5. The Deputy Mayor/Director of the Department of Economic and Housing Development shall file this Resolution and all accompanying documents pertaining to the transfer of membership interest herein approved in the Office of the City Clerk.
6. This Resolution shall take effect immediately.
STATEMENT
This Resolution provides the City’s consent for a transfer of membership interest in Essex Plaza Owner One, LLC from Essex Plaza Owner One MM, LLC to GSB LIHTC Investor, LLC, for a thirty (30) year tax abatement, pursuant to the New Jersey Housing and Mortgage Finance Agency Law, for a Project to acquire and substantially renovate an existing eight (8) story building consisting of four hundred fifty (450) senior affordable housing rental units and on-site community and medical facilities, located on real property commonly known as 1056-1070 Broad Street and 1048-1054 Broad Street, Newark, New Jersey 07102.