Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Execute Community Benefits Agreement.
Purpose: To authorize the execution of a community benefits agreement between the City of Newark, Terrell Redevelopment Partners Urban Renewal, LP (“Applicant” and “URE”), Chapel Street Aspire LLC (Co-Applicant) and the New Jersey Economic Development Authority as a condition of the Applicant and Co-applicant receiving aspire incentives under the Aspire Program Act, N.J.S.A. 34:1B-322, et seq., towards the construction of a new five story building consisting of sixty-nine (69) units of which sixty-eight (68) are affordable, age-restricted rental units, of which 13% will be restricted to 30% Area Median Income (“AMI”), 37% will be restricted to 50% AMI, 50% will be restricted to 60% AMI, and one (1) non-age restricted, non-income restricted superintendent’s unit located at the Property (the "Project") located at 91-97 Chapel Street (formerly 59-97 Chapel Street), Newark, New Jersey, also referred to as Block 2442, Lot 1.02 on the official tax records of the City of Newark, New Jersey after being perfected by the recording of the minor subdivision deed on April 12, 2022 (the "Property") (East Ward).
Entity Name: Terrell Redevelopment Partners Urban Renewal, LP
Entity Address: 8 One Parker Plaza, Fort Lee, New Jersey 07024
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 ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
91-97 Chapel Street (formerly 59-97 Chapel Street), Newark, New Jersey, also referred to as Block 2442, Lot 1.02 on the official tax records of the City of Newark, New Jersey after being perfected by the recording of the minor subdivision deed on April 12, 2022 (the "Property") (East Ward)
Additional Information:
A Public Hearing will be held on Wednesday, December 18, 2024 in City Hall, Council Chamber at 6:30 P.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, Terrell Redevelopment Partners Urban Renewal, LP, 8 One Parker Plaza, Fort Lee, New Jersey 07024 ("URE") is constructing a project with an estimated total project cost of approximately $34,000,000.00 for the construction of a new five story building consisting of sixty-nine (69) units of which sixty-eight (68) are affordable, age-restricted rental units, of which 13% will be restricted to 30% Area Median Income (“AMI”), 37% will be restricted to 50% AMI, 50% will be restricted to 60% AMI, and one (1) non-age restricted, non-income restricted superintendent’s unit located at the Property (the "Project") located at 91-97 Chapel Street (formerly 59-97 Chapel Street), Newark, New Jersey, also referred to as Block 2442, Lot 1.02 on the official tax records of the City of Newark, New Jersey after perfected by the recording of the minor subdivision deed on April 12, 2022 (the "Property"); and
WHEREAS, the estimated total project cost for the Project is approximately $34,000,000.00; and
WHEREAS, two community meetings were held by Developer, the first one at the Property on December 12, 2024 and the second one virtually on December 22, 2024, for the purpose of discussing the Project and the community benefits; 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 December 18, 2024which laid out the community benefits of the Project; and
WHEREAS, under the CBA, the URE would contribute the following community benefits:
(i) The Developer shall make a one-time $10,000.00 contribution to the City of Newark Community Development Economic Trust Fund for exclusive programming in the East Ward.
(ii) The Developer shall make a one-time $10,000.00 contribution to Hawkins Street Elementary School.
(iii) The Developer shall make a one-time $5,000.00 contribution to the Hyatt Count Complex - Community Room.
; and
WHEREAS, URE and 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 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 hereby authorizes the execution of a community benefits agreement between the City of Newark, Terrell Redevelopment Partners Urban Renewal, LP (“Applicant” and “URE”), Chapel Street Aspire LLC (Co-Applicant) and the New Jersey Economic Development Authority as a condition of the Applicant and Co-applicant receiving aspire incentives under the Aspire Program Act, N.J.S.A. 34:1B-322, et seq., towards the construction of a new five story building consisting of sixty-nine (69) units of which sixty-eight (68) are affordable, age-restricted rental units, of which 13% will be restricted to 30% Area Median Income (“AMI”), 37% will be restricted to 50% AMI, 50% will be restricted to 60% AMI, and one (1) non-age restricted, non-income restricted superintendent’s unit located at the Property (the "Project") located at 91-97 Chapel Street (formerly 59-97 Chapel Street), Newark, New Jersey, also referred to as Block 2442, Lot 1.02 on the official tax records of the City of Newark, New Jersey after perfected by the recording of the minor subdivision deed on April 12, 2022 (the "Property") (East Ward).