Title
Dept/ Agency: Law
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Loan Agreement
Purpose: To authorize the execution of the CY 2024 Transitional Aid (TA) Loan Agreement.
Entity Name: State of New Jersey, Division of Local Government Services, Department of Community Affairs
Entity Address: 101 South Broad Street, 2nd Floor, P.O. Box 803 Trenton, New Jersey 08625-0803
Aid Amount: $22,000,000.00
Contract Period: Effective date through June 28, 2024 until September 30, 2029
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
Additional Information:
body
WHEREAS, the City of Newark is facing a serious fiscal emergency, and has requested aid from the CY 2024 Transitional Aid (TA) to Localities to the State of New Jersey, Department of Community Affairs; and
WHEREAS, the Director of the Division of Local Government Services has determined that the City of Newark shall receive an award of Twenty-Two Million Dollars ($22,000,000.00) of Transitional Aid (TA) to Localities; and
WHEREAS, the Department of Community Affairs and the City of Newark have agreed to the terms of the Loan Agreement (the ‘Agreement’); and
WHEREAS, the State of New Jersey, Department of Community Affairs, requires a resolution from the Governing Body authorizing the execution of the Agreement, indicating its awareness of and acknowledging the contents thereof and agreeing to certain conditions.
Now, therefore, be it resolved by the Municipal Council of the City of Newark, that:
1. The Municipal Council of the City of Newark hereby authorizes the Mayor and/or his designee, the Business Administrator, to execute the Loan Agreement (the “Agreement”) as a condition of Transitional Aid (TA) to Localities.
2. The Municipal Council hereby acknowledges that it has reviewed the Agreement and is therefore aware of the contents of the aforementioned Agreement, including all of its terms and conditions, (a copy is hereby attached).
3. This resolution is ratified from the date of adoption back to June 28, 2024.
4. The provisions of the Agreement shall remain in force and effect until September 30, 2029.
5. A copy of the fully executed Agreement shall be filed in the Office of the City Clerk and made available for public inspection.
STATEMENT
This Resolution hereby authorizes the Mayor and/or his designee, the Business Administrator, on behalf of the City of Newark to execute the Loan Agreement (the “Agreement”) as a condition of the loan for CY 2024 Transitional Aid (TA) to Localities, acknowledging its contents and agreeing to all of its terms and conditions. This resolution is ratified from the date of adoption back to June 28, 2024.