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AN ORDINANCE AMENDING TITLE 10, FINANCE AND TAXATION, CHAPTER 32, SPECIAL IMPROVEMENT DISTRICTS, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, AS AMENDED AND SUPPLEMENTED, BY AMENDING 10:32-3.6, 10:32-3.11, 10:32-5.1, 10:32-5.2(C)-(F), 10:32-5.5(A), 10:32-5.5(C)-(D), AND 10:32-5.7(E) CLARIFYING REPORTING REQUIREMENTS AND DESIGNATING A DISTRICT MANAGEMENT CORPORATION, STRIKING 10:32-5.6 HIRING PRACTICES AND 10:32-5.9 TRIENNIAL REVIEW, AND ADDING 10:32-3.XX ESTABLISHING A BOARD OF TRUSTEES AND 10:32-5.XX ESTABLISHING AN EFFECTIVE DATE.
Deferred 6PSF-q 121824
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[WHEREAS, the City previously created, pursuant to Ordinance 6S&FE adopted on September 2, 1998, as amended and supplemented, a special improvement district in a portion of the Central Business District and designated the Newark Downtown District Management Corporation as the district management corporation to manage the Newark Downtown Special Improvement District (the “Downtown District”); and
WHEREAS, the City previously created, pursuant to Ordinance 6PSF-H adopted June 18, 2013, as amended and supplemented, a special improvement district of hotel industry properties, transient accommodations and businesses within the City and designated the Greater Newark Tourism Improvement District Management Corporation, d/b/a The Greater Newark Convention and Visitor Bureau, as the district management corporation to manage the Greater Newark Tourism Improvement District (the “Tourism District”); and
WHEREAS, the City finds a need and desire to consolidate the governance, management and operations of the Downtown District and the Tourism District to increase and improve accountability to the Mayor and the Municipal Council of the City of Newark and to best serve the interests of the City in promoting its economic growth of businesses and tourism;
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Note: Additions are shown as underlined and bold. Deletions are shown as strikethroughs.
SECTION 1.
10:32-3.6 ANNUAL REPORT.
The NDD shall, within 30 days after the close of each fiscal year, make an annual report to the Mayor and Municipal Council regarding its activities of the prior year, including an estimate of the cost of operating and maintaining and annually improving the District for the next fiscal year and an estimate of changes in the amounts of such costs which would follow upon the adoption of any addition or amendment to the plan recommended to or under consideration by the Municipal Council, to provide the Mayor’s reports to the Municipal Council pursuant to N.J.S.A. 40:56-80.
10:32-3.11 EFFECTIVE DATE.
This Section shall take effect upon final passage and publication and in accordance with the laws of the State of New Jersey. The expansion of the District, the delivery of service to the expanded parts of the District and the assessment of the expanded parts of the District shall take place beginning on January 1, 2013. The further expansion of the District, delivery of services to the expanded parts of the District, assessment of the expanded parts of the District, and any other changes to this Section 10:32-3 pursuant to this Ordinance 6PSF-B(s), 11-22-2022 and Ordinance 6PSF-D, 7-10-2024, shall take place beginning on July 1, 2024. Changes to this Section pursuant to Ordinance XXXX, XX-XX-2025, shall take effect upon the first day of the subsequent fiscal quarter following final passage and publication and in accordance with the laws of the State of New Jersey.
10:32-3.XX BOARD GOVERNANCE.
The Board of Trustees of the NDD shall be identical to (i.e., those same persons on) the Board of Trustees of the Newark Alliance, Inc. (the “Newark Alliance”), so long as the Board of Trustees of the Newark Alliance includes at least one member of the Municipal Council, pursuant to the board of director requirement of N.J.S.A. 40:56-68, and the Business Administrator for the City. The Board shall assume the management of the District and shall maintain bylaws governing the procedures of the Board.
10:32-5.1 DEFINITIONS.
DISTRICT MANAGEMENT CORPORATION
Means the Greater Newark Tourism Improvement District Management Corporation “Newark Alliance, Inc.” (the “Newark Alliance”, which may do business as the “Newark Conference”) (also referred to as the Management Corporation), an entity incorporated pursuant to Title 15A of the New Jersey Statutes and designated by this Section to receive funds collected by a special assessment within the District, as authorized by this Section and any amendatory supplemental ordinances. No provision of the Ordinance shall diminish any corporate protections or immunities of the Newark Alliance, or prevent the Newark Alliance from exercising any lawful corporate powers or functions, other than those expressly required by the terms of this Section as conditions for receipt of funds from the City provided hereunder.
§ 10:32-5.2 FINDINGS. Pursuant to N.J.S.A. 40:56-65, et seq. (the “Act”), the Governing Body of the City of Newark hereby determines the following:
a. That the enhancement of business and leisure tourism presents an untapped source of employment opportunities and tax revenues which can enhance the economic well-being of the City of Newark and its residents.
b. That the hotel industry properties, transient accommodations and businesses described by Lot and Block and street address as set forth in Schedule A of this Section are an integral, vital economic and social component within the City and that the creation of a special improvement district including and benefitting such properties and businesses will serve to enhance the safety, welfare and economic growth of the District and, consequently, the residents of the City as a whole.
c. That through this creation of adesignation of the District Management Corporation to provide administrative and other services, the hotel property, transient accommodations and businesses owners and operators of the District, and residents and consumers, will benefit, and the City will have added ability to promote tourism and economic growth and employment.
d. That all costsexpenses for the administration and management of the District (which expenses may be incurred and/or co-mingled on a shared basis with the administration and management of other, unrelated functions of the Newark Alliance, with the approval of its Board of Trustees, acting as the board of trustees of the District Management Corporation pursuant to Section 5.5, in its sole discretion) should be funded by a special license fee assessment imposed and collected by the City on the hotel properties and transient accommodations identified in Schedule A of this Section who benefit from and facilitate tourism within the District and within the City. Such levy shall be collected by the City and shall be transferred to the District Management Corporation to effectuate the purposes of this Section and to exercise the powers granted to it pursuant to this Section. The Newark Alliance shall be under no obligation to provide funds for the administration and management of the District from any other source, but may, however, raise funds through grants and other philanthropic opportunities for the benefit of the District.
e. That it is in the best interests of the City and the public to create a Special Improvement District and a management corporationto designate the District Management Corporation to administer the District.
f. That the hotel and transient accommodation industry and business community should be encouraged to provide self-help and self-financing programs to meet local and regional needs, goals and objectives through the formation of an independent District Management Corporation formed under Title 15A of the New Jersey Statutes.
10:32-5.5 DESIGNATION OF THE DISTRICT MANAGEMENT CORPORATION.
a. There shall be formed a New Jersey non-profit corporation called the “Greater Newark Tourism Improvement District Management Corporation” (hereinafter the “Management Corporation”), which The New Jersey non-profit corporation called the “Newark Alliance, Inc.” shall be the District Management Corporation for the TID.
b. The District Management Corporation shall be an organization without membership.
c. The Board of DirectorsTrustees of the Management Corporation shall consist of 26 persons who shall, in the first instance, be selected by Invest Newark [IN] Tourism Advisory Committee. Thereafter, with the exception of the At-Large Directors, the Board of Directors shall be responsible for the appointment of future and replacement Board members. The representative of the Board of Directors shall be comprised of the following:
1. Nine Hoteliers (which may include Hotel owners and/or Directors), This number may be increased as more hotels enter the District or decreased if any hotels cease operations in the District.
2. Six At-Large Representatives, which shall include:
(a) The CEO of Invest Newark [IN].
(b) A member of the Newark Municipal Council.
(c) The Mayor's Designee.
(d) A community member appointed by the Newark Municipal Council;
(e) Two members appointed by the Mayor, one of whom shall be a community member;
3. The remaining members shall be comprised of Representatives from the following industries:
(a) Representatives of transportation industries,
(b) Representatives from the restaurant industry,
(c) Representatives from areas attractions,
(d) Representatives of the media industry,
(e) Representatives from the arts/culture industry, and
(f) Representatives of area associations.
This organizing Board shall, upon appointment, assume the management of the District and shall adopt bylaws governing the procedures of the Board.
The non-Hotel Directors shall each have a vote with a value of 1 person = 1 vote. Each Hotelier Director shall have a vote with a value of 1 person = 2 votes.
be the Board of Trustees of the Newark Alliance, so long as the Board of Trustees of the Newark Alliance includes at least one member of the Municipal Council, pursuant to the board of director requirement of N.J.S.A. 40:56-68, and the Business Administrator for the City, and all related corporate documents shall be amended to so provide. The Board shall assume the management of the District and shall maintain bylaws governing the procedures of the Board relating to the District.
d. The Management Corporation, as the managing entity, shall have all powers necessary and requisite to effectuate the purposes of this Section and the District. Such powers shall include, without limitation:
(i) Adoption of bylaws for the regulation of the affairs of the Management Corporation and the conduct of its business and the prescribing of rules, regulations and policies in connection with the performance of its functions and duties.
(ii) Employment of such persons as may be required to carry out the business of the Management Corporation and to fix and pay their compensation from funds available to the management entityDistrict Management Corporation.
(iii) Retention of legal counsel.
(iv) Application, acceptance, administration, and compliance with requirements respecting an appropriation of funds or a gift, grant or donation of property or money.
(v) Making and executing agreements which may be necessary or convenient to the exercise of the powers and functions of the management entityDistrict Management Corporation, including contracts with any person, firm, corporation, government agency or other entity.
(vi) Administration and management of its own funds and accounts and payment of its own obligations.
(vii) Borrowing money from private lenders and from government entities.
(viii) Acceptance, purchase, rehabilitation, sale, lease or management of property in the District.
(ix) Enforcing the conditions of any loan, grant, sale or lease made by the management entityDistrict Management Corporation.
(x) Undertaking improvements designed to increase the safety or attractiveness of the District.
(xi) Publicizing and promoting the District and the businesses included within the District boundaries.
(xii) Taking any other actions that are necessary and proper to achieve the purposes of this Section and that are otherwise permitted by law.
e. The Management Corporation shall utilize affirmative action goals and guidelines in its hiring and expenditures whenever possible. Pursuant to N.J.A.C. 17:27-5.2, the Management Corporation will not discriminate against any employee or applicant for employment because of age, race, creed, color, national origin, ancestry, marital status or sex. The Management Corporation will take affirmative action to ensure that such applicants are recruited and employed, and that employees are treated during employment without regard to their age, race, creed, color, national origin, ancestry, marital status or sex.
10:32-5.6 HIRING PRACTICES - NEWARK RESIDENTS. <https://ecode360.com/36684774?highlight=ndd&searchId=14233193197502644>
In connection with future hiring by the Management Corporation, the Management Corporation has committed to the hiring of Newark residents. Each year, in conjunction with the presentation and approval of the Management Corporation Budget by the Municipal Council, the Management Corporation shall report to the Municipal Council on its progress in connection with this hiring commitment. Should the Management Corporation fail to comply with this commitment, the Municipal Council shall consider withholding some or all of the annual funding to the Management Corporation.
10:32-5.7X ANNUAL BUDGETS; REPORTS.
a. The Management Corporation shall operate on a calendar year basis, January 1 through December 31, inclusive.
b. Not later than December 1 of each year, the Management Corporation shall submit a detailed business plan and budget for the upcoming year, for approval by the Governing Body pursuant to N.J.S.A. 40:56-84. The budget shall be accompanied by a report explaining how the budget contributes to the goals and objectives for the District.
c. The budget shall be introduced, approved, amended and adopted by resolution passed by not less than a majority of the full membership of the Governing Body.
d. The Management Corporation shall cause an annual audit of its books, accounts and financial sections to be made and filed with the Governing Body. Such audit shall be completed and delivered to the Governing Body within four months after the close of the fiscal year. A certified duplicate copy of the audit shall be filed with the Director of the Division of Local Government Services in the State Department of Community Affairs within five days of the filing with the City. The Management Corporation shall employ a certified public accountant licensed by and practicing within the State of New Jersey to perform the required audit.
e. The Management Corporation shall submit an annual report to the Governing Body pursuant to N.J.S.A. 40:56-80, within 30 days of the close of the fiscal year, make an annual report to the Mayor and Governing Body regarding its activities of the prior year, including an estimate of the cost of operating and maintaining and annually improving the District for the next fiscal year and an estimate of changes in the amounts of such costs which would follow upon the adoption of any addition or amendment to the plan recommended to or under consideration by the Governing Body, to provide the Mayor’s reports to the Governing Body pursuant to N.J.S.A. 40:56-80. The report shall consist of a narrative covering the previous year’s operation and detailed financial statements and shall include a report on the hiring commitment established in Section 10:33-6.6 hereof.
10:32-5.9 TRIENNIAL REVIEW.
The Municipal Council shall review and assess the effectiveness of the TID on or about October 15, 2015, and shall consult with representatives with an interest in the hotels paying the assessment hereunder, and consider such factors as room rates, occupancy rates, and reports from included hotels.
10:32-5.XX EFFECTIVE DATE.
Changes to this Section pursuant to Ordinance XXXX, XX-XX-2025, shall take effect upon the first day of the subsequent fiscal quarter following final passage and publication and in accordance with the laws of the State of New Jersey.
SECTION 2: If any provision of this Ordinance or application thereof to any person(s) or circumstance is judged invalid by a court of competent jurisdiction, the invalidity shall not affect other provisions or applications of the Ordinance that can be given effect without the invalidated provision or application, and to this end the provisions of this Ordinance are declared severable.
STATEMENT
This Ordinance amends Title 10, Finance and Taxation, Chapter 32, Special Improvement Districts, of the Revised General Ordinances of the City of Newark, New Jersey, as amended and supplemented by amending the ordinances to clarify reporting requirements and designate a district management corporation, striking hiring practices and triennial review, and adding new subsections to establish a Board of Trustees and effective date for the changes.