Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Execute a Community Benefits Agreement
Purpose: To authorize the execution of a Community Benefits Agreement.
Entity Name: Forest Hill House Preservation Urban Renewal, LLC and
AHI Forest Hill House, NP, LLC
Entity Address: 650 5th Avenue, 20th Floor, New York, New York 10019/
2820 Selwyn Avenue, Suite 690, Charlotte, North Carolina 28209-2820
Funding Source: Aspire Program Act, N.J.S.A. 34:1B-322 et seq.
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)
501-507 Mount Prospect Avenue/Block 628/Lot 13/North Ward
Additional Information:
The Community Benefits Agreement between the City of Newark, Forest Hill House Preservation Urban Renewal, LLC, AHI Forest Hill House, NP, LLC, and the New Jersey Economic Development Authority as a condition of receiving tax credits incentives under the Aspire Program Act, N.J.S.A. 34:1B-322 et seq., towards rehabilitating a ten (10) story, (100) unit, 100% senior-occupied affordable elevator building consisting of (100) housing rental units comprised of eighteen (18) studios, eighty-one (81) one-bedroom units, and one (1) two-bedroom superintendent unit, all of which shall be restricted to tenants at 60% of Area Median Income (“AMI”) (collectively referred to as “Income Restricted Units”), a partial basement, multiple common spaces on the first floor, and twenty-five (25) on-site parking spaces reserved for building residents located at 501-507 Mount Prospect Avenue, Newark, New Jersey 07104, also referred to as Block 628, Lot 13 on the Official Tax records of the City of Newark, New Jersey 07104.
A Public Hearing will be held on Thursday, November 7, 2024 in City Hall, Council Chamber at 12:30 P.M.
body
WHEREAS, pursuant to the New Jersey Economic Recovery Act of 2020, the New Jersey Economic Development Authority (the "NJEDA") has established the Aspire Program Act, N.J.S.A. 34:1B-322 et seq. (the "Act") to encourage economic development and job creation; and
WHEREAS, under the Act, projects with total project costs equal to or greater than $10,000,000 must enter into a community benefits agreement (the "CBA") with NJEDA and the municipality or county in which the project is located; and
WHEREAS, Forest Hill House Preservation Urban Renewal, LLC (the Applicant”) and AHI Forest Hill House, NP, LLC (the “Co-Applicant”) (hereafter collectively referred to as the “Developer”) applied for ASPIRE funding under the Act to be used towards rehabilitating a ten (10) story, one hundred (100) unit, 100% senior-occupied affordable elevator building consisting of one hundred (100) housing rental units comprised of eighteen (18) studios, eighty-one (81) one-bedroom units, and one (1) two-bedroom superintendent unit, all of which shall be restricted to tenants at 60% of Area Median Income (“AMI”) (collectively referred to as “Income Restricted Units”), a partial basement, multiple common spaces on the first floor, and twenty-five (25) on-site parking spaces (the "Project") located at 501-507 Mount Prospect Avenue, Newark, New Jersey 07104, also referred to as Block 628, Lot 13 on the official tax records of the City of Newark, New Jersey (the "Property"); and
WHEREAS, the estimated total project cost for the Project is approximately $41,419,105.00; and
WHEREAS, a community meeting was held by the Developer on May 2, 2024, at 4pm at the Property for the purpose of discussing the Project and the community benefits; and
WHEREAS, prior to entering into a CBA, the Act provides that the Governing Body of the municipality in which the Project is located shall hold at least one public hearing at which the Governing Body shall hear testimony from residents, community groups and other stakeholder regarding the community benefit that the agreement shall address; and
WHEREAS, a public hearing was held on November 7, 2024 which laid out the community benefits of the Project; and
WHEREAS, under the CBA, the Developer would contribute the following community benefits:
(i) The Developer shall make a $25,000.00 contribution to the Mount Prospect Partnership, a Business Improvement District, for the creation of additional mid-block sidewalk crossings, the re-establishment of the historic tree canopy, and the implementation of new signage and wayfinding strategies; and
(ii) The Developer shall provide a service program to low-income senior residents at the Property ((valued at approx. $100,000.00 annually), which service program shall be substantially consistent with those listed and identified in Exhibit B; and
WHEREAS, the Developer and the City along with NJEDA wish to enter into a CBA to set forth the terms and conditions relating to the delivery and offering of such benefits of the Project to the residents in and around the City.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The aforementioned recitals are incorporated by reference as if fully set forth herein.
2. The Community Benefits Agreement ("CBA") is attached hereto as Exhibit A and incorporated into this legislation, with minutes from this public hearing to be attached thereto upon approval thereof.
3. The Mayor and the City Clerk are hereby authorized to execute the CBA in substantially the form attached hereto, with such additions, deletions and modifications as may be necessary or desirable in consultation with counsel.
4. If any part of this Resolution shall be deemed invalid, such parts shall be severed and the invalidity thereby shall not affect the remaining parts of this Resolution.
5. A copy of this Resolution shall be available for public inspection at the Office of the City Clerk.
6. This Resolution shall take effect immediately.
STATEMENT
This Resolution hereby authorizes the execution of a Community Benefits Agreement between the City of Newark, between the City of Newark, Forest Hill House Preservation Urban Renewal, LLC, AHI Forest Hill House, NP, LLC, and the New Jersey Economic Development Authority as a condition of receiving tax credits incentives under the Aspire Program Act, N.J.S.A. 34:1B-322 et seq., towards rehabilitating a ten (10) story, one hundred (100) unit, 100% senior-occupied affordable elevator building consisting of one hundred (100) housing rental units comprised of eighteen (18) studios, eighty-one (81) one-bedroom units, and one (1) two-bedroom superintendent unit, all of which shall be restricted to tenants at 60% of Area Median Income (“AMI”) (collectively referred to as “Income Restricted Units”), a partial basement, multiple common spaces on the first floor, and twenty-five (25) on-site parking spaces (the “Project”) reserved for building residents located at 501-507 Mount Prospect Avenue, Newark, New Jersey, also referred to as Block 628, Lot 13 on the official tax records of the City of Newark, New Jersey 07104 (the "Property") (North Ward).