Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Executive Community Benefits Agreement
Purpose: To authorize the execution of a Community Benefits Agreement between the City of Newark, Fulton Street Newark, 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 the construction of a new multi-family housing project, consisting of three hundred and ninety-six (396) residential units, of which three hundred sixteen (316) are market rate residential rental units (the “Market Rate Units”), of which eighty (80) are affordable rental units, of which five (5) transitional housing units shall be restricted to tenants at 30% of the Area Median Income (“AMI”), which include two (2) two-bedroom apartments and three (3) one-bedroom apartments, forty-seven (47) units shall be restricted to tenants at 50% of the AMI, which include nineteen (19) studio apartments, twenty-two (22) one-bedroom apartments, and six (6) two-bedroom apartments, and twenty-eight (28) units shall be restricted to tenants at 80% of the AMI, which include fourteen (14) studio apartments, thirteen (13) one-bedroom apartments, and one (1) two-bedroom apartment (the “Income Restricted Units”), 4,726 square feet of ground floor commercial space (the “Retail”), and a 107-car parking garage, (collectively, the “Project”), located in the Central Ward on real property commonly known as 16-32 Fulton Street, Newark, New Jersey and identified on the City’s tax map as Block 14, Lot 43 (formerly known as Block 43, 44, 45, 46, 47, 48, 49, 50, and 51) (the “Property”)
Entity Name: Fulton Street Newark, LLC
Entity Address: 50 Park Place, Newark, New Jersey 07102
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 ( ) N/A
List of Property:
(Address/Block/Lot/Ward)
16-23 Fulton Street/block 14/Lot 43/Central Ward (formerly known as Block 43, 44, 45, 46, 47, 48, 49, 50, and 51)
Additional Information:
A Public Hearing will be held on Wednesday, April 2, 2025
body
WHEREAS, Fulton Street Newark, LLC (the Applicant”) (hereafter referred to as the “Developer”) applied for ASPIRE funding under the Act to be used in connection with a redevelopment project located in the Central Ward at 16-32 Fulton Street, Newark, New Jersey, also referred to as Block 14, Lot 43 (formerly known as Block 43, 44, 45, 46, 47, 48, 49, 50, and 51) on the official tax records of the City of Newark, New Jersey (the “Property”), for the construction of a new multi-family housing project, consisting of three hundred and ninety-six (396) residential units, of which there shall be three hundred sixteen (316) market rate residential rental units and eighty (80) affordable rental units that include five (5) transitional housing units, 4,726 square feet of ground floor commercial space, and a 107-car parking garage (the “Project”); and
WHEREAS, the estimated total project cost for the Project is approximately $198,322,134.00; and
WHEREAS, on December 2, 2024, the Developer held a Community Meeting at the Robert Treat Hotel located at 50 Park Place, Newark, New Jersey 07102, to discuss 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 April 2, 2025 which laid out the community benefits of the Project; and
WHEREAS, under the CBA, the Developer agreed to contribute the following community benefits:
(i) A $1,000,000.00 payment to the Municipality’s Community Economic Development Trust Fund, consisting of $200,000 per year, for five years. The initial payment shall be made one year following the issuance of the Certificate of Occupancy of the Project (“Initial Payment Date”) and each subsequent payment shall be due on the anniversary of the Initial Payment Date ; 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, Fulton Street Newark, 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. in connection with a redevelopment project located in the Central Ward at 16-32 Fulton Street, Newark, New Jersey, also referred to as Block 14, Lot 43 (formerly known as Block 43, 44, 45, 46, 47, 48, 49, 50, and 51) on the official tax records of the City of Newark, New Jersey (the “Property”), for the construction of a new multi-family housing project, consisting of three hundred and ninety-six (396) residential units, of which there shall be three hundred sixteen (316) market rate residential rental units and eighty (80) affordable rental units that include five (5) transitional housing units, 4,726 square feet of ground floor commercial space, and a 107-car parking garage (the “Project”) (Central Ward).