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AN ORDINANCE GRANTING A THIRTY-FIVE (35) YEAR TAX ABATEMENT PURSUANT TO THE NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY LAW OF 1983, AS AMENDED AND SUPPLEMENTED, N.J.S.A. 55:14K-1 ET SEQ. TO 10 PARK PLACE NEWARK LLC, C/O BERGER ORGANIZATION, ROBERT TREAT CENTER, 50 PARK PLACE, NEWARK, NEW JERSEY 07102 FOR THE ADAPTIVE REUSE OF THE PROPERTY LOCATED AT 10 PARK PLACE INTO A TEN (10) STORY HIGH-RISE ELEVATOR BUILIGING WITH 196-UNIT FULLY AFFORDABLE RESIDENTIAL RENTAL PROJECT WITH UNITS CONSISTING OF FIFTY-FOUR (54) STUDIO UNITS, ONE-HUNDRED AND SIXTEEN (116) ONE-BEDROOM UNITS, SIXTEEN (16) TWO-BEDROOM UNITS AND TEN (10) THREE-BEDROOM UNITS, OF WHICH 195 HOUSING UNITS SHALL BE RESTRICTED TO TENANTS WHICH AVERAGE 50.1% OF THE AREA MEDIAN INCOME (“AMI”), WHICH INCLUDE EIGHT (8) STUDIO APARTMENTS, SIXTEEN (16) ONE-BEDROOM APARTMENTS, ONE (1) TWO-BEDROOM APARTMENT, AND ONE (1) THREE-BEDROOM APARTMENT UNIT SHALL BE RESTRICTED TO TENANTS AT OR BELOW 30% OF THE AMI; EIGHTEEN (18) STUDIO APARTMENTS, FORTY-THREE (43) ONE-BEDROOM APARTMENTS, SEVEN (7) TWO-BEDROOM APARTMENTS, AND FOUR (4) THREE-BEDROOM APARTMENTS RESTRICTED TO TENANTS AT OR BELOW 50% OF THE AMI; AND TWENTY-SEVEN (27) STUDIO APARTMENTS, FIFTY-SEVEN (57) ONE-BEDROOM APARTMENTS, EIGHT (8) TWO-BEDROOM APARTMENTS, AND FIVE (5) THREE-BEDROOM APARTMENTS SHALL BE RESTRICTED TO TENANTS AT OR BELOW 60% AMI (THE “INCOME RESTRICTED UNITS”), TOGETHER WITH APPROXIMATELY 4,500 SQUARE FEET OF GROUND FLOOR AND CELLAR RETAIL SPACE (THE “RETAIL”) AND ASSOCIATED AMENITIES, LOCATED ON REAL PROPERTY COMMONLY KNOWN AS 2-4 PARK PLACE, 6 PARK PLACE, AND 8-12 PARK PLACE, NEWARK, NEW JERSEY AND IDENTIFIED ON THE CITY’S TAX MAP AS BLOCK 17, LOTS 7, 9, AND 10 (THE “PROJECT”).
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WHEREAS, 10 Park Place Newark LLC, having its principal office at Berger Organization, Robert Treat Center, Fifty Park Place, Newark, New Jersey 07102 (the “Entity”) has applied for a long term tax exemption pursuant to the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended and supplemented, N.J.S.A. 55:14K-1 et seq. (the “HMFA Law”) for a project to convert the ten (10) story high rise elevator building, originally built in 1928 as the headquarters for the Fireman’s Insurance Company, into one-hundred and ninety-six (196) fully affordable rental units consisting of fifty-four (54) studio units, one-hundred and sixteen (116) one-bedroom units, sixteen (16) two-bedroom units and ten (10) three-bedroom units, of which 195 housing units shall be restricted to tenants which average 50.1% of the Area Median Income (“AMI”), which include eight (8) studio apartments, sixteen (16) one-bedroom apartments, one (1) two-bedroom apartment, and one (1) three-bedroom apartments units shall be restricted to tenants at or below 30% of the AMI; eighteen (18) studio apartments, forty-three (43) one-bedroom apartments, seven (7) two-bedroom apartments, and four (4) three-bedroom apartments restricted to tenants at or below 50% of the AMI; and twenty-seven (27) studio apartments, fifty-seven (57) one-bedroom apartments, eight (8) two-bedroom apartments, and five (5) three-bedroom apartments shall be restricted to tenants at or below 60% AMI (the “Income Restricted Units”), 4,500 square feet of ground floor and cellar commercial retail space (the “Retail”), and amenity space located on the ground floor which include a mail room, package room, onsite laundry facilities, a community lounge, an exercise room, bicycle storage, and spaces for social services, located on real property commonly known as 2-4 Park Place, 6 Park Place, and 8-12 Park Place, Newark, New Jersey and identified on the City’s tax map as Block 17, Lots 7, 9, and 10 (collectively, the “Project”); and
WHEREAS, the Mayor has submitted the application and proposed Financial Agreement to the Municipal Council with his recommendation thereof, a copy of which is annexed hereto; and
WHEREAS, the Municipal Council has determined that the relative benefits of this Project outweigh any costs associated with this tax exemption and that without the tax abatement granted herein, the Project would not be undertaken.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
The application of 10 Park Place Newark LLC, having its principal office at Berger Organization, Robert Treat Center, Fifty Park Place, Newark, New Jersey 07102 (the “Entity”), for the development, maintenance and operation of the Project described in the application is hereby approved in accordance with the recommendation of the Mayor for a project to convert the ten (10) story high rise elevator building, originally built in 1928 as the headquarters for the Fireman’s Insurance Company, into one-hundred and ninety-six (196) fully affordable rental units consisting of fifty-four (54) studio units, one-hundred and sixteen (116) one-bedroom units, sixteen (16) two-bedroom units and ten (10) three-bedroom units, of which 195 housing units shall be restricted to tenants which average 50.1% of the Area Median Income (“AMI”), which include eight (8) studio apartments, sixteen (16) one-bedroom apartments, one (1) two-bedroom apartment, and one (1) three-bedroom apartment unit shall be restricted to tenants at or below 30% of the AMI; eighteen (18) studio apartments, forty-three (43) one-bedroom apartments, seven (7) two-bedroom apartments, and four (4) three-bedroom apartments restricted to tenants at or below 50% of the AMI; and twenty-seven (27) studio apartments, fifty-seven (57) one-bedroom apartments, eight (8) two-bedroom apartments, and five (5) three-bedroom apartments shall be restricted to tenants at or below 60% AMI (the “Income Restricted Units”), 4,500 square feet of ground floor and cellar commercial retail space (the “Retail”), and amenity space located on the ground floor which include a mail room, package room, onsite laundry facilities, a community lounge, an exercise room, bicycle storage, and spaces for social services, located on real property commonly known as 2-4 Park Place, 6 Park Place, and 8-12 Park Place, Newark, New Jersey and identified on the City’s tax map as Block 17, Lots 7, 9, and 10 (collectively, the “Project”).
2. The abatement from taxation on improvements is hereby granted to the Entity for a period of thirty-five (35) years pursuant to the HMFA Law and the Entity shall be subject to the provisions and conditions of the HMFA Law and the Financial Agreement annexed hereto.
3. The Mayor of the City of Newark is hereby authorized to execute, on the City’s behalf, the Financial Agreement in the form attached hereto.
4. An executed copy of the Financial Agreement authorized by this Ordinance shall be filed and maintained with the City Clerk.
5. The Project, when completed, will conform with all State laws and ordinances of the City of Newark relating to its construction and use.
6. The Affirmative Action Program now on file in the Office of the City Clerk is declared to be a material condition of the Financial Agreement authorized by this Ordinance.
7. The Entity 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.
8. The Entity shall file an employment report (herein described below) with the Office of Affirmative Action who shall forthwith after receiving the report send a copy thereof to the City Clerk and the Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.
9. The annual service charge shall be based on a percentage ranging from 3.5% to 5.0% of the AGR generated from the Project, as more fully set forth in the Financial Agreement.
10. The Entity shall pay the minimum annual service charge, as calculated pursuant to HMFA Law and the financial agreement, in each year in which the annual service charge would be less than the minimum annual service charge.
11. The following occurrences and requirements are express conditions of the granting of this tax abatement, to be performed by the Entity and the failure to comply with these requirements will result in the cancellation of the tax abatement:
(a) The Entity shall not, without prior consent of the Municipal Council of the City of Newark, or as otherwise authorized in the financial agreement, sell, lease, assign, encumber, subordinate, convey, mortgage or transfer all, or any part of the Project, so as to sever, disconnect or divide the improvements from the land embraced within the Project;
(b) The Entity, pursuant to the Revised City Ordinance 10:24-1 et seq., as amended, shall be deemed to agree that it will in good faith assist the City of Newark in its goal of having 50% of all new jobs arising out of the businesses conducted on the Project site after the issuance of the Certificate of Occupancy and during the continuation of the tax exemption, dedicated to Newark residents, of which 25% of all such new employees shall be minority residents;
(c) The Entity shall concomitantly, with the submission of the annual report required of it, attach an employment report under oath, with particulars, stating the manner and the extent to which it has complied with 11(b) above. This employment report shall be filed with the Director of Finance, the City Clerk and the Deputy Mayor / Director of the Department of Economic and Housing Development;
(d) The Entity shall pay all outstanding taxes and all outstanding water and sewer charges within thirty (30) days of the adoption of this Ordinance;
(e) The Entity shall submit to the City a copy of its formation documents, as filed with the Secretary of State;
(f) The Entity shall receive a favorable review and certification from the appropriate City departments and agencies, pursuant to the Revised City Ordinance 10:24-1 et seq., as amended.
12. That in any year that the Entity shall fail to make four (4) consecutive land tax payments when due and owing such delinquency shall render the Entity ineligible for any land tax credits against the annual service charge.
13. The Entity understands and agrees that the revenue projections set forth in the application are estimates and that the actual payments in lieu of taxes to be paid by the Entity to the City shall be determined pursuant to the Financial Agreement to be executed between the Entity and the City of Newark.
14. The Deputy Mayor/Director of the Department of Economic and Housing Development (the “Director”) is authorized, as part of this Ordinance and in connection with any mortgage financing for the Project, to execute and deliver, on behalf of the City of Newark, an Estoppel Certificate upon written request of the Entity or its lender, subject to the terms set forth herein.
Any such Estoppel Certificate shall be limited to statements, as of its date and only to the extent of the City’s actual knowledge and official records, regarding the status of the Financial Agreement and the Entity’s compliance therewith, and such other customary matters as the Director, in the City’s sole discretion, deems appropriate.
No Estoppel Certificate shall modify, amend, supplement, or waive this Ordinance or the Financial Agreement. The City shall have no obligation to certify matters beyond its records or actual knowledge and shall not be deemed to have conducted any independent investigation. Issuance shall be subject to prior review, revision, and written approval by the Deputy Director and, if required, the City’s Outside Legal Counsel.
The City reserves all rights, remedies, defenses, and protections under this Ordinance, the Financial Agreement, and applicable law, and assumes no liability to the Entity, its lender, or any third party in connection with any Estoppel Certificate, while permitting the Entity to request such certificate for legitimate financing purposes.
15. To the extent of any inconsistency with any prior City ordinance, and/or Municipal Code provision governing the granting of long-term tax exemptions, including, inter alia, procedures for application, review and approval, required terms of the financial agreement, required conditions and covenants, limits on duration, means of enforcement, and all other matters whatsoever, such prior City ordinance, and/or Municipal Code provisions are hereby waived, but solely with respect to this Ordinance.
16. The Entity shall submit to the City of Newark’s Department of Economic and Housing Development or its assigned agent all documentation which it is required to submit and maintain in accordance with the terms and conditions of the financing to be provided by the HMFA and all other sources of funding received.
17. The Entity shall submit to the City of Newark’s Law Department and Department of Economic and Housing Development copies of the mortgage and all other loan documents executed between the Entity and the HMFA within thirty (30) days of the closing.
18. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance of the Municipal Council of the City of Newark granting a thirty-five (35) year tax abatement pursuant to the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended and supplemented, N.J.S.A. 55:14K-1 et seq. to 10 Park Place Newark LLC, c/o Berger Organization, Robert Treat Center, 50 Park Place, Newark, New Jersey 07102 for the adaptive reuse of the property located at 10 park place into a ten (10) story high-rise elevator building with 196-unit fully affordable residential rental project with units consisting of fifty-four (54) studio units, one-hundred and sixteen (116) one-bedroom units, sixteen (16) two-bedroom units and ten (10) three-bedroom units, of which 195 housing units shall be restricted to tenants which average 50.1% of the Area Median Income (“AMI”), which include eight (8) studio apartments, sixteen (16) one-bedroom apartments, one (1) two-bedroom apartment, and one (1) three-bedroom apartment unit shall be restricted to tenants at or below 30% of the AMI; eighteen (18) studio apartments, forty-three (43) one-bedroom apartments, seven (7) two-bedroom apartments, and four (4) three-bedroom apartments restricted to tenants at or below 50% of the AMI; and twenty-seven (27) studio apartments, fifty-seven (57) one-bedroom apartments, eight (8) two-bedroom apartments, and five (5) three-bedroom apartments shall be restricted to tenants at or below 60% AMI (the “Income Restricted Units”), together with approximately 4,500 square feet of ground floor and cellar retail space (the “Retail”) and associated amenities, located on real property commonly known as 2-4 Park Place, 6 Park Place, and 8-12 Park Place, Newark, New Jersey and identified on the city’s tax map as Block 17, Lots 7, 9, and 10 (the “Project”).