Title
Dept/ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: 2023 Annual Budget for Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau
Purpose: Introducing and Approving 2023 Annual Budget for Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau.
Amount: $2,058,738.00
Budget Period: January 1, 2023 through December 31, 2023
Additional Information:
Ordinance 6PSF-h adopted on June 19, 2013 authorized the creation of the Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau.
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WHEREAS, on June 19, 2013, the Municipal Council adopted Ordinance 6PSF-h, which the Mayor of the City of Newark created and designated within the City of Newark as a Special Improvement District pursuant to N.J.S.A. 40:56-65 et seq. (the “Ordinance”), to be known as Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau; and
WHEREAS, pursuant to N.J.S.A. 40:56-65(c), the Greater Newark Tourism Improvement District Management Corporation (“the District Management Corporation”) a non-profit corporation, was designated by the Ordinance as the management entity for the Special Improvement District; and
WHEREAS, the District Management Corporation is comprised of all hotel properties within the City (the “District”) to provide supplemental services within the District and collect a special license fee assessment on all affected property within the District, the fee assessments shall be collected by the owners or operators of hotel properties within the District as an additional room charge imposed upon such hotel owners and operators based upon actual room rentals and paid to the City of Newark in quarterly installments together with regular real property tax payments for the purpose of promoting the economic and general welfare of the District and the municipality; and
WHEREAS, the District Management Corporation provides administrative and other services to benefit businesses, employees, residents, visitors and consumers in the District and shall have all powers necessary and requisite to effectuate the purposes of the Ordinance and the District; and
WHEREAS, in accordance with N.J.S.A. 40:56-80, the Municipal Council must review and approve a report of estimated costs and proposed assessments and fees to be charged for the operation of the District for the fiscal year; and
WHEREAS, in accordance with Section 7(b) of the Ordinance, the District Management Corporation shall submit a detailed business plan and budget, including a report explaining how the budget contributes to the goals and objectives of the District, for the upcoming year for approval by the Municipal Council in accordance with the procedure set forth in N.J.S.A. 40:56-84; and
WHEREAS, the report of cost estimates, assessments and fees to be charged and the annual budget for the District Management Corporation contribute to the goals and objectives for the District; and
WHEREAS, in accordance with Section 7(e) of the Ordinance, the District Management Corporation shall submit an annual report to the Municipal Council consisting of a narrative covering the previous year’s operation and detailed financial statement and shall include a report on the hiring commitment established in Section 6 of the Ordinance; and
WHEREAS, the estimated annual budget for the 2023 calendar year (January 1, 2023 through December 31, 2023), in the amount of Two Million Fifty Eight Thousand Seven Hundred Thirty - Eight Dollars and Zero Cents ($2,058,738.00), of which, Two Hundred Seventy-Three Thousand Three Hundred and Thirty-Two Dollars and Zero Cents ($273,332.00) will be acquired through grants and Three Hundred Sixty Dollars ($360.00) will be obtained from interest, for the District, was unanimously approved by the District Management Corporation at its September 14, 2022, Board of Directors’ Meeting, which is attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The estimated annual budget for the calendar year 2023 (January 1, 2023 through December 31, 2023), is in the amount of Two Million Fifty Eight Thousand Seven Hundred Thirty- Eight Dollars and Zero Cents ($2,058,738.00)(“Budget”), of which, Two Hundred Seventy-Three Thousand Three Hundred and Thirty- Two Dollars and Zero Cents ($273,332.00) will be acquired through grants and Three Hundred Sixty Dollars ($360.00) will be obtained from interest, for Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau (“District Management Corporation”), attached hereto, as approved by the District Management Corporation at its September 14, 2022, meeting of the Board of Directors, is hereby introduced and approved, subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-h adopted on June 19, 2013, as set forth in N.J.S.A. 40:56-84.
2. The Budget is ratified from January 1, 2023, through the date of adoption of this authorizing Resolution by the Municipal Council.
3. The Tax Assessor is directed to do the following:
(a) Prepare an assessment roll specifying the amounts specifically assessed against each benefitted and assessable property in the District in proportion to the benefit conferred, based upon the approved budget in accordance with the procedures prescribed in N.J.S.A. 40:56-80(c). Such assessment roll shall include a description of each property and the names of the owners; and
(b) File the assessment roll in the Office of the City Clerk to be available for public inspection.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is directed to do the following:
(a) Schedule a public hearing on the budget and the amount of the assessments not less than twenty-eight (28) days from the date of this Resolution;
(b) At least ten (10) days prior to the date of the hearing, publish:
(i) a notice setting the time and place of the public hearing on the budget and amounts of the special assessments; and
(ii) a copy of the entire budget in a newspaper of general circulation in the City of Newark;
(c) At least ten (10) days before the date of the scheduled hearing:
(i) post a complete copy of the approved budget in City Hall in the customary location for posting public notices;
(ii) post a complete copy of the assessment roll in City Hall in the customary location for posting public notices; and
(iii) make available a copy of the budget to any person requesting it up to and including the date of the public hearing.
5. Upon approval of the assessment roll with any changes approved by the Municipal Council, the City Clerk shall immediately certify a copy of the assessment roll to the County Tax Board to be effective as of January 1, 2023.
6. The amount anticipated to be raised by the special assessments to support the annual Budget ($2,058,738.00) of the District Management Corporation for the 2023 calendar year (January 1, 2023 through December 31, 2023), is estimated to be in the amount of One Million Seven Hundred Eight Five Thousand Forty-Six Dollars and Zero Cents ($1,785,046.00), and Two Hundred Seventy-Three Thousand Three Hundred Thirty-Two Dollars and Zero Cents ($273,332.00) will be acquired through Grants, and Three Hundred Sixty Dollars and Zero Cents ($360.00) will be obtained through interest. Said total estimated amount of the special assessments set forth in the estimated and approved budget shall be paid over to the District Management Corporation in installments of 25% of the total estimated assessments quarterly.
7. The Deputy/Mayor Director of the Department of Economic and Housing Development will file an executed copy of this Resolution with the Office of the City Clerk.
8. The Office of the City Clerk shall forward certified copies of this Resolution to the Business Administrator, the Director of Finance, and the Tax Collector.
STATEMENT
This Resolution ratifies and authorizes the Municipal Council to approve the annual budget of Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau in the amount of Two Million Fifty- Eight Thousand Seven Hundred Thirty-Eight Dollars and Zero Cents ($2,058,738.00) for the calendar year 2023 (January 1, 2023 through December 31, 2023), subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-h, adopted on June 19, 2013, as set forth in N.J.S.A. 40:56-80 and N.J.S.A. 40:56-84.