Title
Dept/ Agency: Economic and Housing Development
Action: (X ) Ratifying (X) Authorizing (X) Amending
Type of Service: Resolution of Support
Purpose: To provide support for the submission of an application for tax credits sought by Developer under the Aspire Tax Credit Program to the New Jersey Economic Development Authority
Entity Name: KS Nova Towers Urban Renewal LLC
Entity Address: 60 Park Place, Floor 20, Newark. New Jersey 07102
Grant Amount: Not Applicable
Total Project Cost: $324,110,150.00
City Contribution: $0.00
Other Funding Source/Amount: Traditional debt financing and equity funding
Grant Period: Ten (10) years tax credit period, from the project completion date
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
(Address/Block/Lot/Ward)
32-34 William Street/Block 94/Lot 1 (Central Ward)
26-30 William Street/Block 94/Lot 3 (Central Ward)
16-24 William Street/Block 94/Lot 6 (Central Ward)
body
WHEREAS, KS Nova Towers Urban Renewal LLC, with a business address of 60 Park Place, Floor 20, Newark, New Jersey 07102 (the “Developer”) wishes to construct a new building where there will be a shared podium base and two (2) 42-story towers, including a total of 712 residential units, with 356 units in each tower, of which 20% will be affordable housing, that are connected by a sky bridge at the 24th floor, and other related improvements including, but not limited to a lobby, package room, lockers, valet facilities, refuse rooms, commercial space, fitness space, entertainment space, multi-function rooms, lounges, outdoor terraces, other related amenities, ground-floor retail space, located at 32-34 William Street, 26-30 William Street, and 16-24 William Street, Newark, New Jersey and known on the City’s tax map as Block 94, Lots 1, 3 and 6 (collectively, the “Project”); and
WHEREAS, in connection with the financing of the Project, the Developer is applying to the New Jersey Economic Development Authority (the “NJEDA”) for tax credits under the newly created Aspire Tax Credit Program (“Funds”); and
WHEREAS, the NJEDA’s underwriting requirements for the Funds align with the City of Newark’s objectives in multiple ways, including a twenty (20%) percent affordable housing set aside for new construction, the use of prevailing wage and affirmative action protocols in connection with both construction of the Project and post-construction building services, and the need for applicants to enter into a community benefits agreement with the host municipality for projects with a total project cost of $10 Million or more; and
WHEREAS, pursuant to NJEDA regulations, all applicants for Funds under the Aspire Tax Credit Program are required to obtain a Resolution of Support from the Governing Body of the host municipality; and
WHEREAS, pursuant to NJEDA regulations, the Newark Municipal Council (“Municipal Council”) hereby determines that there is a need for this Project in the City of Newark; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development recommends that the Municipal Council support the Developer’s application as it relates to the Funds; and
WHEREAS, pursuant to the requirements of the NJEDA, the Municipal Council, the Governing Body, hereby supports the application submitted by the Developer.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Newark Municipal Council (“Municipal Council”) supports the application being submitted by KS Nova Towers Urban Renewal, LLC (Developer) for tax credits under the NJ Aspire Tax Credit Program (“Funds”) to the New Jersey Economic Development Authority (“NJEDA”).
2. The submission of the application and support of the Municipal Council of same is hereby ratified from the date of submission of Developer’s application for the Funds to the date of adoption of this Resolution.
3. The Municipal Council does hereby adopt the within Resolution and supports the application for Funds, pursuant to and in conformity with the NJEDA requirements for the Funds.
STATEMENT
Resolution, wherein the Municipal Council supports the application for tax credits under the NJ Aspire Tax Credit Program being submitted by the developer to the New Jersey Economic Development Authority (“NJEDA”) and ratifies the within from the date of Developer’s submission of the application for the funds to the date of adoption of this Resolution.