Title
Dept./ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Resolution of Support
Purpose: To provide Municipal Council support, for the submission of an application, for tax credits sought by 81-93 Orange Street Urban Renewal, LLC, the Developer, under the NJ Aspire Tax Credit Program to the New Jersey Economic Development Authority
Entity Name: 81-93 Orange Street Urban Renewal, LLC
Entity Address: Pasadena, Maryland 21122
Grant Amount: $60,000,000.00 - Tax Credit Amount
Total Project Cost: $185,902,712.00
City Contribution: $0.00
Other Funding Source/Amount: Traditional debt financing and equity funding
Grant Period: Ten (10) years - Tax Credit Period, from 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
81-93 Orange Street/Block 31/Lot 27/Central Ward
Additional Information:
body
WHEREAS, 81-93 Orange Street Urban Renewal, LLC (the “Developer”), proposes to construct and operate a fourteen (14) story mixed-use building, to be known as The Portnow, consisting of (350) residential units, inclusive of seventy (70) affordable housing units, 8,513 square feet of retail space, and 181 parking spaces (hereinafter referred to as the “Project”) at the property located at 81-93 Orange Street, Block 31, Lot 27, in the City of Newark, County of Essex, New Jersey (“Property”); and
WHEREAS, the City of Newark’s Central Planning Board (the “Planning Board”) approved the Project on December 20, 2021 and memorialized by Board Resolution on January 3, 2022; and
WHEREAS, the Project will bring over $186,000,000.00 in capital investment to the City of Newark and will help create over (160) construction jobs and approximately twenty-five (25) permanent jobs following construction; and
WHEREAS, the Project will fully comply with the City of Newark’s Inclusionary Zoning Ordinance, and will include twenty percent (20%) of the units being set aside for on-site affordable housing units; 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 (the “Funds”), which was authorized by the New Jersey Economic Recovery Act of 2020 (Sections 54 through 67 of P.L. 2020, c. 156 and later amended by Sections 22 through 29 of P.L. 2021 c. 160); and
WHEREAS, the NJEDA’s underwriting requirements for the Funds align with the City of Newark’s objectives in multiple ways, including a twenty percent (20%) 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 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 application as it relates to the Funds; and
WHEREAS, pursuant to the requirements of the NJEDA, the Municipal Council, the Governing Body of the City, 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 Municipal Council supports the Project, known as The Portnow, fourteen (14) story mixed-use building including (350) residential units, inclusive of (70) affordable housing units, 8,513 square feet of retail space and (181) parking spaces, as proposed by 81-93 Orange Street Urban Renewal, LLC (the “Developer”), located at 81-93 Orange Street, Newark, New Jersey 07102 (Block 31, Lot 27), in its submission of an application for tax credits under the Aspire Tax Credit Program (the “Funds”) to the New Jersey Economic Development Authority (“NJEDA”).
2) The submission of the application and support of the Municipal Council of the same is hereby ratified from the date of Developer’s submission of the 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 81-93 Orange Street Urban Renewal, LLC’s application for tax credits under the Aspire Tax Credit Program submitted to the New Jersey Economic Development Authority (“NJEDA”) for the construction of a Project consisting of (14) story mixed-use building with (350) residential units, inclusive of (70) affordable housing units, 8,513 square feet of retail space, and (181) parking spaces, located at 81-93 Orange Street, Newark, New Jersey 07102 (Block 31, Lot 27) and ratifies the within from the date of Developer’s submission of the application to the date of adoption of this Resolution.