Title
Dept./Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) 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 NJ Aspire Tax Credit Program to the New Jersey Economic Development Authority.
Entity Name: 10 Park Place Newark, LLC
Entity Address: 50 Park Place, Newark, New Jersey 07102
Grant Amount: $0.00
Total Project Cost: $139,315,000.00
City Contribution: $0.00
Other Funding Source/Amount: Traditional debt financing and equity funding
Grant Period:
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
8-12 Park Place/Block 17/Lot 7/Central Ward
6 Park Place/Block 17/Lot 9/Central Ward
2-4 Park Place/Block 17/Lot 10/Central Ward
Additional Information:
body
WHEREAS, 10 Park Place Newark LLC (“Developer”) proposes to rehabilitate a historic building into a mixed-use project with 231 affordable residential dwelling units, tenant amenities and ground floor commercial use at the properties located at 8-12 Park Place, 6 Park Place and 2-4 Park Place (Block 17, Lots 7, 9, and 10), in the City of Newark, New Jersey (“Project”); and
WHEREAS, in connection with the financing of the Project, the Developer is applying to the New Jersey Economic Development Authority (“NJEDA”) for tax credits under the 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 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 of the City of Newark 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 Newark Municipal Council support the application as it relates to the Funds; and
WHEREAS, pursuant to the requirements of the NJEDA, the Newark 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 Newark Municipal Council (“Municipal Council”) supports the application for tax credits under the Aspire Tax Credit Program being submitted by the Developer 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 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, pursuant to and in conformity with the NJEDA requirements for the Funds.
STATEMENT
Resolution, wherein the Newark Municipal Council supports the application for tax credits under the 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 submission of the application for the funds to the date of adoption of this Resolution.