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: 81-93 Orange Street Urban Renewal, LLC
Entity Address: 8162 Pinehurst Harbor Way, Pasadena, Maryland 21122
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)
24-38 University Avenue (a/k/a 81-93 Orange Street)/Block 31/Lot 27/Central Ward
Additional Information:
The Community Benefits Agreement between the City of Newark, 81-93 Orange Street Urban Renewal, 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., by 81-93 Orange Street Urban Renewal, LLC towards the construction of an approximately fourteen-story residential building, consisting of a total of 400,000 square feet, inclusive of (350) apartment units, 8,500 square feet of retail space, and a structured parking garage located at 81-93 Orange Street (Block 31, Lot 27).
Deferred 7R2-f 091824
An initial Public Hearing was held on Wednesday, October 2, 2024 in City Hall, Council Chamber at 12:30P.M.
Deferred 7R2-d 100224
A second Public Hearing will be held on Tuesday, October 8, 2024 in City Hall, Council Chamber at 10:00A.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, 81-93 Orange Street Urban Renewal, LLC, 8162 Pinehurst Harbor Way, Pasadena, Maryland 21122 ("URE") has an estimated total project cost of approximately One Hundred Fifty-Five Million Five Hundred Twenty-Five Thousand Six Hundred Nine Dollars and Zero Cents ($155,525,609.00) for the construction of an approximately fourteen-story residential building, consisting of a total of 400,000 square feet, inclusive of (350) apartment units, 8,500 square feet of retail space, and a structured parking garage (the "Project") located at 24-38 University Avenue (a/k/a 81-93 Orange Street), Block 31, Lot 27, Newark, New Jersey 07102 (the "Property"); 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 will be held on October 2, 2024, which will lay out the community benefits of the Project; and
WHEREAS, under the CBA, the URE would contribute the following community benefits:
(i) Provide permanent art installation on the Project façade utilizing local Newark artists (Monetary Value = $200,000.00);
(ii) Coordination with Audible to identify and engage a minority/woman-owned business to utilize the retail space available in the Project (Monetary Value = $100,000); and
(iii) Provide, for free, a “City of Newark” sign on a portion of the Project’s blade sign that faces the New Jersey Transit line and commuters using I-280 (Monetary Value = $2,000,000.00); and
WHEREAS, the URE and the City of Newark (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 of the City of Newark and/or his designee, the Deputy Mayor/Director of Economic and Housing Department 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 authorizes the execution of a Community Benefits Agreement between the City of Newark, 81-93 Orange Street Urban Renewal, LLC and the New Jersey Economic Development Authority as a condition of receiving the Aspire Program Act incentives under the Aspire Program Act, N.J.S.A. 34:1B-322 et seq. by 81-93 Orange Street Urban Renewal, LLC towards the construction of an approximately fourteen-story residential building, consisting of a total of 400,000 square feet, inclusive of (350) apartment units, 8,500 square feet of retail space, and a structured parking garage located at 24-38 University Avenue (a/k/a 81-93 Orange Street), Block 31, Lot 27, Newark, New Jersey 07102 (Central Ward).