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AN ORDINANCE AUTHORIZING THE ASSIGNMENT AND ASSUMPTION OF THE FINANCIAL AGREEMENT FROM 306 MLK BLVD URBAN RENEWAL COMPANY, LLC (“ASSIGNOR”) TO QOZB ELLAVOZ NEWARK URBAN RENEWAL COMPANY, LLC (“ASSIGNEE”) AND AMENDMENT NO. 1 TO FINANCIAL AGREEMENT TO AMEND THE PROJECT DESCRIPTION AND AMEND CONSTRUCTION SCHEDULE FOR THE PROJECT, LOCATED IN THE CENTRAL WARD AT 292-306 DR. MARTIN LUTHER KING JR. BOULEVARD, NEWARK, NEW JERSEY AND IDENTIFIED ON THE CITY’S TAX MAP AS BLOCK 42, LOT 44.01.
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WHEREAS, on November 26, 2019, the Newark Municipal Council adopted Ordinance 6PSF-a(s) granting a long term tax abatement to 306 MLK BLVD Urban Renewal Company, LLC a New Jersey urban renewal entity qualified to do business under the provisions of the Long Term Tax Exemption Law, with an address of 45 Academy Street, Suite 503, Newark, New Jersey 07102 (the “Assignor”) pursuant to the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. for the for a thirty (30) year term for a project to preserve and rehabilitate a vacant historic structure into twenty-one (21) market rate and four (4) deed restricted affordable residential rental units and 47,358 square feet of nonprofit office and program space (collectively, the “Project”), located in the Central Ward at 292-306 Dr. Martin Luther King Jr. Boulevard, Newark, New Jersey and identified on the City’s tax map as Block 42, Lot 44.01 (the “Property”) and
WHEREAS, as authorized under Ordinance 6PSF-a(s) on December 19, 2019, the City entered into a Financial Agreement with Assignor governing the tax abatement for the Project (the “Financial Agreement”, a copy of which is attached hereto as Exhibit A”); and
WHEREAS, on February 13, 2025, QOZB Ellavoz Newark Urban Renewal Company, LLC a New Jersey urban renewal entity qualified to do business under the provisions of the Long Term Tax Exemption Law, with an address of 917 Main Street, 2nd Floor Belmar, New Jersey 07719 (the “Assignee”) purchased the Property from the Assignor; and
WHEREAS, as set forth in Section 9.01 of the Financial Agreement, the City must consent to the transfer of the Project and the assignment of the Financial Agreement; and
WHEREAS, the Assignee has filed an application with the City (the “Application”) seeking City consent to the transfer of the Project and the Financial Agreement from the Assignor to the Assignee; and
WHEREAS, the Assignee is also requesting an amendment to the Financial Agreement as it relates to the project description by proposing to complete the preservation and rehabilitation of a seven (7) story vacant historic structure to create a mixed-used building that will provide new co-living workforce housing units for students and young professionals seeking affordably priced housing in downtown Newark. Specifically, the project will now have forty-two (42) residential units operated as traditional and co-living apartments consisting of 144 bedrooms comprised of four (4) one-bedrooms, nine (9) two-bedrooms, ten (10) three-bedrooms, five (5) four-bedrooms, twelve (12) five-bedrooms, and two (2) six-bedroom units, of which eight (8) residential units, comprised of twenty-nine (29) bedrooms scattered throughout the co-living project will be set-aside as affordable restricted to tenants up to 80% of the area median income (the ”Income Restricted Units”), and thirty-four (34) unis, scattered throughout the co-living project, comprised of one hundred fifteen (115) bedroom units will be market-rate (the ”Market Rate Units”) and 4,300 gross square feet of commercial/retail space studios (the “Commercial/Retail Units”), (the “Amended Project”).
WHEREAS, the Assignee is also seeking to amend the construction schedule in the Financial Agreement (the “Amended Construction Schedule”) to allow for additional time to complete the Amended Project; and
WHEREAS, the City is desirous of approving the transfer of all of the rights, title and interest of the Assignor in and to the Financial Agreement to the Assignee in connection with the Assignor’s transfer of the Project to the Assignee and would also be willing to amend the Financial Agreement to incorporate the Amended Project and Amended Constriction Schedule.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City of Newark hereby approves Assignee’s application and consents to: (i) the conveyance of the Project by Assignor to Assignee; (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee; and (iii) amendment of the Financial Agreement to incorporate the Amended Project Description and Amended Constriction Schedule for the Project, located in the Central Ward at 292-306 Dr. Martin Luther King, Jr. Boulevard, Newark, New Jersey, and designated as Block 42, Lot 44.01 on the official tax map of the City of Newark.
2. The Municipal Council hereby authorizes the Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to execute, on the City’s behalf, the Assignment and Assumption and Amendment No. 1 to the Financial Agreement in substantially the form attached hereto.
3. An executed copy of the Assignment and Assumption and Amendment No. 1 to the Financial Agreement authorized by this ordinance shall be filed and maintained with the City Clerk.
4. The Assignee shall in the operation of the Project comply with all laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin, or ancestry.
5. The adoption of this ordinance is expressly conditioned upon the requirement that Assignee pay the City all outstanding taxes and/service charges, water/sewer charges, and other charges due under the Financial Agreement, as Amended within thirty (30) days of the date of the adoption of this ordinance. If Assignee fails to timely satisfy these requirements, this ordinance and the approval granted herein shall be null and void.
6. The adoption of this ordinance is expressly conditioned upon the requirement that Assignee register with the City’s Office of Affordability and Sustainable Housing and comply with all their rules and regulations pertaining to the affordable housing units in the Project.
7. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance approves the application of QOZB Ellavoz Newark Urban Renewal Company, LLC a New Jersey urban renewal entity qualified to do business under the provisions of the Long Term Tax Exemption Law, with an address of 917 Main Street, 2nd Floor Belmar, New Jersey 07719 (the “Assignee”) and consents to: (i) the conveyance of the Project by 306 MLK BLVD Urban Renewal Company, LLC a New Jersey urban renewal entity qualified to do business under the provisions of the Long Term Tax Exemption Law, with an address of 45 Academy Street, Suite 503, Newark, New Jersey 07102 (the “Assignor”) to Assignee; (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee; and (iii) amendment of the Financial Agreement to incorporate the Amended Project Description and Amended Constriction Schedule for the Project, located in the Central Ward at 292-306 Dr. Martin Luther King, Jr. Boulevard, Newark, New Jersey, and designated as Block 42, Lot 44.01 on the official tax map of the City of Newark.