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 Developer, under the NJ Aspire Tax Credit Program to the New Jersey Economic Development Authority
Entity Name: SWPN Development 1, LLC and Brick Family Village I, LLC
Entity Address: 35 Halsey Street, Third Floor, Newark, New Jersey
Total Project Cost: $137,665,418.00
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
137-139 Badger Avenue/Block 2681/Lot 1/South Ward
141-143 Badger Avenue/Block 2681/Lot 3/South Ward
145-153 Badger Avenue/Block 2681/Lot 5/South Ward
246 Jelliff Avenue/Block 2691/Lot 1.01/South Ward
248-250 Jelliff Avenue/Block 2691/Lot 1.02/South Ward
252 Jelliff Avenue/Block 2691/Lot 1.03/South Ward
254-256 Jelliff Avenue/Block 2691/Lot 1.04/South Ward
264-268 Jelliff Avenue/Block 2691/Lot 50/South Ward
258-262 Jelliff Avenue/Block 2691/Lot 53/South Ward
Additional Information:
body
WHEREAS, SWPN Development 1, LLC and Brick Family Village I, LLC (the “Developer”), proposes to develop a project consisting of: (i) a new multifamily residential building located on the Badger Avenue properties containing seventy (70) residential rental units, one hundred percent (100%) of which will be affordable housing, totaling more than 80,000 square feet; and (ii) a commercial component located on the Jelliff Avenue properties consisting of a four-story K-8 school building totaling approximately 80,000 square feet, together with associated amenities and off-street parking at the property located at 137-139 Badger Avenue, 141-143 Badger Avenue, 145-153 Badger Avenue, 246 Jelliff Avenue, 248-250 Jelliff Avenue, 252 Jelliff Avenue, 254-256 Jelliff Avenue, 264-268 Jelliff Avenue and 258-262 Jelliff Avenue, Newark, New Jersey, 137-139 Badger Avenue, 141-143 Badger Avenue, 145-153 Badger Avenue, 246 Jelliff Avenue, 248-250 Jelliff Avenue, 252 Jelliff Avenue, 254-256 Jelliff Avenue, 264-268 Jelliff Avenue and 258-262 Jelliff Avenue, Newark, New Jersey, in the City of Newark, County of Essex, New Jersey (hereinafter referred to as the “Project”); 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 gGoverning bBody of the host municipality; and
WHEREAS, pursuant to NJEDA regulations, the Newark Municipal Council (“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 Newark Municipal Council (“Municipal Council”) supports the Project, to develop a project consisting of: (i) a new multifamily residential building located on the Badger Avenue properties containing seventy (70) residential rental units, one hundred percent (100%) of which will be affordable housing, totaling more than 80,000 square feet; and (ii) a commercial component located on the Jelliff Avenue properties consisting of a four-story K-8 school building totaling approximately 80,000 square feet, together with associated amenities and off-street parking, as proposed by SWPN Development 1, LLC and Brick Family Village I, LLC (the “Developer”), located at 137-139 Badger Avenue, 141-143 Badger Avenue, 145-153 Badger Avenue, 246 Jelliff Avenue, 248-250 Jelliff Avenue, 252 Jelliff Avenue, 254-256 Jelliff Avenue, 264-268 Jelliff Avenue and 258-262 Jelliff Avenue, Newark, New Jersey (137-139 Badger Avenue, 141-143 Badger Avenue, 145-153 Badger Avenue, 246 Jelliff Avenue, 248-250 Jelliff Avenue, 252 Jelliff Avenue, 254-256 Jelliff Avenue, 264-268 Jelliff Avenue and 258-262 Jelliff Avenue, Newark, New Jersey), 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 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 Developer’s submission of the application for the funds to the date of adoption of this Resolution.