Title
Dept./Agency: Economic and Housing Development
Action: ( X ) Ratifying ( ) Authorizing ( X ) Amending
Type of Service: Grant Agreement
Purpose: First Amendment for a Grant and Grant Agreement with Kawaida Towers JV Partners, LLC in the amount of $8,000,000.00
Entity Name: Kawaida Towers JV Partners, LLC
Entity Address: 8 Lombardy Street, Suite 320, Newark, New Jersey 07102
Grant Amount: $8,000,000.00
Funding Source: Community Project Funding Grant
Total Project Cost: $23,046,833.00
Other Funding Source/Amount:
Grant Period:
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale (X) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
17-21 Halsey Street/Block 20/Lot 1/Central Ward
Additional Information:
Resolution 7R2-d adopted by Municipal Council on April 15, 2026, authorized a Grant Agreement between Kawaida Towers JV Partners, LLC and the City of Newark.
The First Amendment to the Grant Agreement reflects the revised terms and conditions applicable to the City’s award of Community Project Funding
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WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the “Redevelopment Law”), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7Rdo(AS) adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Redevelopment Law; and
WHEREAS, on January 21, 2009, pursuant to Ordinance 6PSF-g, the Municipal Council of the City adopted the Broad Street Station Redevelopment Plan (“Redevelopment Plan”); and
WHEREAS, the Redeveloper desires to construct a mixed use complex on real property located at 17-21 Halsey Street, within the Central Ward of the City, and identified on the Official Tax Map of the City of Newark, as Block 20, Lot 1 (collectively, the “Property”) consisting of approximately a 10-story building with 31 units of residential housing, of which all 31 units shall be affordable housing, 52% of the units shall be rental and 48% of the units shall be for-sale, with proposed retail mix of anchor community-serving grocery store, retail spaces, and commercial spaces (collectively, the “Project”). All units to be constructed or rehabilitated as part of the Project shall be referred to herein as the “Housing Units”); and
WHEREAS, the Project will enhance the physical beauty and character of the neighborhood, while at the same time increasing the number of affordable housing rental and for-sale homes available to local residents; and
WHEREAS, as a result, the Project will improve the quality of life of local residents, drive economic growth and foster pride in the local residents which are goals necessary for any long-term neighborhood redevelopment and prosperity; and
WHEREAS, N.J.S.A. 40A:12A-8(f) of the LRHL authorizes municipalities to provide grants to redevelopers to provide financial assistance for the performance of redevelopment activities in order to implement redevelopment projects in accordance with redevelopment plans; and
WHEREAS, the Project qualifies for financial assistance since it is located within a redevelopment area and is being performed in order to implement the Redevelopment Plan; and
WHEREAS, the Newark Municipal Council adopted a Resolution accepting grant funds from the United States Department of Housing and Urban Development in the amount of Eight Million Dollars and Zero Cents ($8,000,000.00) for the production and preservation of affordable housing, on September 18, 2024 (Resolution 7R2-d), which authorized the establishment of the Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Fund (the “Fund”) (collectively, the “Resolution”); and
WHEREAS, the purpose of the Fund is for the production and preservation of affordable housing production in the City of Newark and to expand the City’s Live Newark Homeowner Assistance Program of forgivable down payment loans to first time homebuyers and for home repairs; in addition, the Fund will help further the Equitable Investments in Newark Communities Program, which enables the development or rehabilitation of homes, while simultaneously expanding opportunities for minority/women-owned business enterprise developers and contractors through the United States Department of Housing and Urban Development (“HUD”); and
WHEREAS, located in one of the least affordable regions of the country, the City will use the Fund to help achieve Mayor Ras J. Baraka’s vision of quality and affordable housing for all Newark residents at every income level throughout the City; and
WHEREAS, the Project is consistent with the goals and objectives of the Fund and the City further wishes to fund a capital grant to the Redeveloper in an amount not to exceed Eight Million Dollars ($8,000,000.00) (the “Grant”) from the amounts deposited in the Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Fund; and
WHEREAS, on April 15, 2026, the Municipal Council adopted Resolution 7R2-i (the “Original Resolution”), authorizing the use of an amount not to exceed Eight Million Dollars and Zero Cents ($8,000,000.00) in Community Project Funding to provide a capital grant to the Redeveloper to support the development and construction of the Project and authorizing the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development (the “Director”), to execute a Grant Agreement with the Redeveloper; and
WHEREAS, following adoption of the Original Resolution, the City and Redeveloper further reviewed and negotiated the terms and conditions of the Grant Agreement and determined that certain revisions are appropriate to clarify the parties’ respective obligations and the requirements applicable to the administration of the Fund; and
WHEREAS, among other things, the revised Grant Agreement clarifies the characterization and administration of the funds, memorializes affordability requirements applicable to the Project as a condition of the Grant, and revises certain Project timelines and other administrative provisions; and
WHEREAS, the Department of Economic and Housing Development desires to enter into and execute the revised Grant Agreement, in form attached hereto, with the Redeveloper, which shall, among other things, provide a capital grant of $8,000,000.00 for construction of the Project; and
WHEREAS, the Municipal Council desires to amend the Original Resolution to authorize execution of the revised Grant Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-i, adopted on April 15, 2026, is hereby amended to reflect the revised terms and conditions applicable to the City’s award of Community Project Funding to Kawaida Towers JV Partners, LLC, as set forth in the Grant Agreement and incorporated herein by reference. The Eight Million Dollars and Zero Cents ($8,000,000.00) in Community Project Funding shall be used to support the development and construction of the Project, including the production of affordable housing, subject to the terms and conditions of the Grant Agreement and all applicable federal, State, and local requirements.
2. The Municipal Council hereby ratifies and reaffirms the authorization contained in Resolution 7R2-i for the use of an amount not to exceed Eight Million Dollars and Zero Cents ($8,000,000.00) from the Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Fund to provide a grant to Kawaida Towers JV Partners, LLC, to support the development and construction of the Project in accordance with the terms and conditions of the Grant Agreement.
3. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, are each hereby authorized to enter into and execute the Grant Agreement with the Redeveloper, in the form attached hereto, in the amount not to exceed Eight Million Dollars and Zero Cents ($8,000,000.00) from the Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Fund, to be used as financing assistance to develop and subsidize the costs of the Project which shall facilitate redevelopment of the City and implementing related activities;
4. Except as expressly amended by this Resolution and the revised Grant Agreement approved herein, Resolution 7R2-i shall remain in full force and effect and is hereby ratified and confirmed.
5. The terms of the Grant Agreement shall commence on the date of execution and delivery of the Grant Agreement by the Entity and the City and expire upon issuance of a Certificate of Occupancy for the Project.
6. A copy of the fully executed Grant Agreement, the Mortgage Note and the recorded Mortgage must be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
STATEMENT
Resolution amending Resolution 7R2-i, adopted April 15, 2026, to approve a revised Grant Agreement between the City of Newark and Kawaida Towers JV Partners, LLC, for the previously authorized award of an amount not to exceed Eight Million Dollars and Zero Cents ($8,000,000.00) in federal Community Project Funding to support the development and construction of an approximately thirty-one (31) unit mixed-use affordable housing project located at 17-21 Halsey Street, Newark, New Jersey. The Resolution authorizes execution of the revised Grant Agreement and otherwise ratifies and confirms the authorization provided by Resolution 7R2-i adopted April 15, 2026.