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: Stella Gardens Preservation, LLC
Entity Address: 250 West 55th Street, 35th Floor, New York, New York 10019
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
331-343 Springfield Avenue/Block 2544.08/Lot 1/Central Ward
Additional Information:
body
WHEREAS, Stella Gardens Preservation, LLC (the “Developer”), proposes the rehabilitation of an existing affordable housing project, consisting of 262 residential units, restricted to households earning no more than sixty percent (60%) of the Area Median Income (“AMI”), currently supported by a Project Based Voucher contract administered by HUD via a RAD Section 18 conversion, which will consist of substantial renovation of the apartment units, buildings, and systems, including comprehensive upgraded apartment kitchens and bathrooms, replace and upgrade flooring, doors, and hardware, providing new paint, installation of Energy Star lighting and plumbing fixtures, updating the HVAC systems, full-time resident services, free cable and internet, air conditioning units and free parking at the property located at 331-343 Springfield Avenue, Newark, New Jersey, Block 2544.08, Lot 1, 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 governing body 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, the rehabilitation of an existing affordable housing project, consisting of 262 residential units, restricted to households earning no more than sixty percent (60%) of the Area Median Income (“AMI”), currently supported by a Project Based Voucher contract administered by HUD via a RAD Section 18 conversion, which will consist of substantial renovation of the apartment units, buildings, and systems, including comprehensive upgraded apartment kitchens and bathrooms, replace and upgrade flooring, doors, and hardware, providing new paint, installation of Energy Star lighting and plumbing fixtures, updating the HVAC systems, full-time resident services, free cable and internet, air conditioning units and free parking, as proposed by Stella Gardens Preservation, LLC (the “Developer”), located at 331-343 Springfield Avenue, Newark, New Jersey (Block 2544.08, Lot 1), 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.