Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Application to the Department of Community Affairs for Funding
Name of Project(s): Façade Improvement Grant Pilot Project
Amount to be Financed: $194,283.00
Funding Source: UEZ Funds
Local Finance Board meeting date(s): N/A
Project Information:
(Description/ Project No./ Amount Appropriated/Ordinance No.)
Resolution of the Newark Municipal Council authorizing the Submission/Acceptance of an Application to The New Jersey Urban Enterprise Zone Authority for Newark UEZ Façade Improvement Grant Pilot Project
Additional Information:
Application made in conjunction with Invest Newark
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WHEREAS, on August 15, 1983, the State of New Jersey enacted the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq., (the “Act”) to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private sector jobs through public and private investment; and
WHEREAS, the City of Newark (the “City”) was designated as an Urban Enterprise Zone (“UEZ”) under the UEZ Program, and pursuant to N.J.S.A. 52:27H-72, the designation shall remain effective until the end of the 10th State fiscal year next following the effective date of P.L. 2021, c.197; and the current designation as an UEZ expires on or about December 31, 2023; and
WHEREAS, pursuant to N.J.S.A. 52:27H-67, Resolution 7R6-a(S) adopted on December 10, 2019, and Ordinance 6PSF-b adopted on June 24, 2020, the City designated Invest Newark, a NJ Nonprofit Corporation (and/or its predecessors-in-interest) as the “Zone Development Corporation” for the purpose of operating, administrating, managing, and monitoring the City’s Urban Enterprise Zone Program and the “Zone Assistance Funds” derived therefrom; and
WHEREAS, the Ordinance provides that inter alia the Newark Municipal Council and Invest Newark may propose to undertake economic development projects in the enterprise zone and to fund those projects and credit them to the account maintained by Invest Newark for the UEZ, pursuant to N.J.S.A. 52:27H-88; and
WHEREAS, funds from Fiscal Year 2023 are available from the DCA in the amount of Seven Million Six Hundred Fifty-Five Thousand Seventy-Nine Dollars and Zero Cents ($7,655,079.00) of Zone Assistance Funds from the DCA’s UEZ Program, if awarded these funds they must be obligated by June 30, 2025; and
WHEREAS, on July 30, 2024, the Board of Invest Newark, on July 30, 2024, adopted the Resolutions attached hereto as Exhibit A proposing the undertaking of the Newark UEZ Façade Improvement Grant Pilot Project, and the funding administrative costs associated therewith as set forth below to be funded from Zone Assistance Funds, and to propose such plan to be jointly adopted by Resolution of the Newark Municipal Council after public hearing; and
WHEREAS, the Newark UEZ Façade Improvement Grant Pilot Project provides financial support to UEZ business owners to improve their storefronts on Orange Street between 1st Street and Roseville Avenue, and South Orange Avenue between Bergen Street and Dover Street; thereby beautifying and increasing customer experience on the corridor, attracting more customers and creating more local, private sector jobs in Newark’s UEZ; and
WHEREAS, pursuant to N.J.S.A 52:27H-88(c), in order to make funds available to the project from monies deposited in the Enterprise Zone Administrative Assistance Funds, the Newark Municipal CouncilGoverning Body must adopt a Resolution approving the project and authorizing the submission of the application for funding.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Newark Municipal Council hereby authorizes and directs submission of an application in conjunction withto Invest Newark for funding to the New Jersey Department of Community Affair’s Enterprise Zone Authority (the “DCA”) in the amount of One Hundred Ninety-Four Thousand Two Hundred Eighty-Three Dollars and Zero Cents ($194,283.00), to support the Newark UEZ Facade Improvement Grant Pilot Project.
2. The DCA will evaluate and approve the proposed project to be funded from monies deposited in the Enterprise Zone Assistance Fund credited to the account of the Urban Enterprise Zone Authority which is maintained by the State Treasurer for the Enterprise Zone.
3. If the DCA awards Invest Newark the requested funds it shall be authorized to allocate funds from the Zone Assistance Funds in the amount of $194,283.00 to fund the Newark UEZ Façade Improvement Grant Pilot Project.
4. If funds are awarded by Fiscal Year 2023 funds must be obligated by June 30, 2025.
5. Invest Newark will be responsible for keeping all records and shall provide the City of Newark a reporting upon request.
6. Invest Newark shall maintain all documents related to this project, transactions, or services pertaining to this Resolution for a period of five (5) years from the date of the final disposition of these funds, pursuant to N.J.S.A. 52:15c-14(d) and N.J.A.C. 17:44-2.2.
7. A copy of the executed contract herein authorized shall be filed in the Office of the City Clerk.
STATEMENT
This Resolution authorizes the submission/acceptance of an application to the New Jersey Department of Community Affairs’ Enterprise Zone Authority for Enterprise Zone Assistance Funds for the Newark UEZ Façade Improvement Grant Pilot Project in the amount of One Hundred Ninety- Four Thousand Two Hundred Eighty-Three Dollars and Zero Cents ($194,283.00) to provide financial support to UEZ business owners to improve their storefronts on Orange Street between 1st Street and Roseville Avenue, and South Orange Avenue between Bergen Street and Dover Street; thereby beautifying and increasing customer experience on the corridor, attracting more customers and creating more local, private sector jobs in Newark’s UEZ.