Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Application to the Department of Community Affairs for Funding
Purpose: Resolution of the Newark Municipal Council authorizing the Submission/Acceptance of an Application to the New Jersey Urban Enterprise Zone Authority for the Newark UEZ Small Business Revolving Loan Fund Project
Entity Name: Invest Newark
Entity Address: 111 Mulberry Street, Newark, New Jersey 07102
Additional Information:
State of New Jersey UEZ Funds
body
WHEREAS, on August 5, 1983, the State of New Jersey enacted the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq. (the “Act”) to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private sector jobs through public and private investment; and
WHEREAS, the City of Newark (the “City”) was designated as an Urban Enterprise Zone(“UEZ”) under the UEZ Program, and said designation remains effective pursuant to N.J.S.A. 52:27H-72; and
WHEREAS, pursuant to N.J.S.A. 52:27H-67, and Ordinance 6PSF-b adopted by the Municipal Councilon June 24, 2020 (“Ordinance”), the City designated Invest Newark, A NJ Nonprofit Corporation (and/or its predecessors-in-interest) as the “Zone Development Corporation” for the purpose of operating, administrating, managing, and monitoring the City’s Urban Enterprise Zone Program and the “Zone Assistance Funds” derived therefrom; and
WHEREAS, the Ordinance provides that the Newark Municipal Council and Invest Newark may undertake economic development projects in the enterprise zone and to fund those projects from the City’s zone assistance allocation pursuant to N.J.S.A. 52:27H-88; and
WHEREAS, funds from Fiscal Year 2023 are available from the said allocation in the amount of
Seven Million Six Hundred Fifty-Five Thousand Seventy-Nine Dollars and Zero Cents ($7,655,079.00), which funds must be obligated by June 30, 2025; and
WHEREAS, on April 9, 2025, the Board of Invest Newark adopted a Resolution (attached hereto as Exhibit A) proposing the undertaking of the Newark UEZ Small Business Revolving Loan Fund Project (“Project”) to be funded from Zone Assistance Funds; and
WHEREAS, the Project provides a revolving fund to make loans to small UEZ-certified businesses in Newark to assist them in locating or expanding their business and increasing employment opportunities in Newark; and
WHEREAS, pursuant to N.J.S.A. 52:27H-88(c), in order to make funds available to the project from monies deposited in the Enterprise Zone Administrative Assistance Funds, the Newark Municipal Council must adopt a Resolution approving the project and authorizing the submission of the application for funding.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Newark Municipal Council hereby authorizes and directs Invest Newark to submit an application for funding to the New Jersey Department of Community Affair’s Urban Enterprise Zone Authority (the “UEZA”) in the amount of Two Million Dollars and Zero Cents ($2,000,000.00), to support the Newark UEZ Small Business Revolving Loan Fund Project (“Project).
2. If the UEZA approves the Project and the requested funds, Invest Newark shall be authorized use the funds to fund the Project.
3. Any awarded derived from Fiscal Year 2023 funds must be obligated by June 30, 2025.
4. Invest Newark shall maintain all records related to the Project and shall provide the City of Newark a reporting upon request.
5. Invest Newark shall maintain all documents related to this project, transactions, or services pertaining to this Resolution for a period of five (5) years from the date of the final disposition of these funds, pursuant to N.J.S.A. 52:15c-14(d) and N.J.A.C. 17:44-2.2.
6. A copy of any contract executed in connection with the Project shall be filed in the Office of the City Clerk.
STATEMENT
This Resolution authorizes the submission/acceptance of an application to the New Jersey Department of Community Affairs’ Enterprise Zone Authority for Enterprise Zone Assistance Funds for the Newark UEZ Small Business Revolving Loan Fund Project in the amount of Two Million Dollars and Zero Cents ($2,000,000.00) to provide a revolving fund to make loans to small UEZ-certified businesses in Newark to assist them in locating or expanding their business and increasing employment opportunities in Newark.