Title
Dept./ Agency: Economic and Housing Development
Action: (X ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Funding Agreement
Purpose: To authorize the execution of 1) a Funding Agreement between the City of Newark and Invest Newark under which the City will provide funding to Invest Newark for economic development and redevelopment related activities from January 1, 2025 through December 31, 2027; and 2) to authorize the execution of a Use And Occupancy Agreement, attached to the Funding Agreement as Exhibit B, for Invest Newark’s use and occupancy of the City-owned property located at 111 Mulberry Street, Newark, New Jersey as its primary place of business from January 1, 2025 through December 31, 2027.
Entity Name: Invest Newark, a NJ Non-Profit Corporation
Entity Address: 111 Mulberry Street, Lower Level, Newark, New Jersey 07102
Funding Amount: Not to exceed $3,500,000.00 for 2025; $3,000,000.00 for 2026 and 2027
Contract Period: January 1, 2025 through December 31, 2027
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( X ) N/A
Additional Information:
body
WHEREAS, Invest Newark, a NJ Non-Profit Corporation (“Invest Newark”) formerly Newark Community Economic Development Corporation (“Newark CEDC”), with offices at 111 Mulberry Street Lower Level, Newark, New Jersey 07102, was formed for the purpose of the receipt and administration of funds for charitable purposes and the performance of activities pertaining to economic development within the City, including development of residential, commercial, industrial, and other real estate in a manner beneficial to the City, all as more specifically set forth in Invest Newark’s Certificate of Incorporation; and
WHEREAS, Invest Newark is the City of Newark’s (“City”) Economic Development arm; and
WHEREAS, the services to be provided by Invest Newark to the City were originally outlined in a Funding Agreement, which was authorized by the Newark Municipal Council (“Municipal Council”) by Resolution 7R3- j (AS) adopted on July 1, 2009 (the “2009 Funding Agreement”); and
WHEREAS, the 2009 Funding Agreement commenced on September 1, 2009 and terminated on August 31, 2014; and
WHEREAS, by Resolution 7R3-d (s) on December 23, 2014, the Municipal Council ratified a Memorandum of Understanding (the “2014 MOU”) between the City and Newark CEDC whereby, for the time period of September 1, 2014 through August 31, 2015, Newark CEDC would continue to perform the services outlined in the 2009 Funding Agreement; and
WHEREAS, pursuant to Resolution 7R3-a, adopted on January 21, 2015, by the Municipal Council (“Resolution 7R3-a”), the City named Newark CEDC as the City’s agent for and administrator of the $5,000,000.00 in grant funds (the “Grant Funds”) formerly held by Greenspaces (a fund of the Community Foundation of New Jersey with a principal place of business at 35 Knox Hill Road, Morristown, New Jersey 07962); and
WHEREAS, although the original delineated purposes for the Grant Funds included but were not limited to the acquisition, design, improvement and maintenance of riverfront parks located in the vicinity of 3 Penn Plaza East, 943-973 Raymond Blvd., Newark, New Jersey 07105, Resolution 7R3-a expanded the allowable uses of the funds to include the funding of the administration and operations of Newark CEDC, now known as Invest Newark; and
WHEREAS, thereafter the Municipal Council adopted Resolution 7R3-a(s) on May 26, 2016, and consented to the continuation of services previously undertaken by Newark CEDC, now known as Invest Newark, and authorized a new Funding Agreement for a term of September 1, 2015 through December 31, 2017, to implement the redevelopment activities on behalf of the City and consented to the appointment of Newark CEDC as the City’s administrator and manager of the City’s UEZ Program for consideration of no less than Three Million Dollars and Zero Cents ($3,000,000.00) from the City’s UEZ funds; and
WHEREAS, pursuant to Resolution 7R3-a(s), adopted on May 26, 2016, the Municipal Council ratified and authorized the City to enter into and execute a Use and Occupancy Agreement with Newark CEDC, now known as Invest Newark to use the City-owned property located at 111 Mulberry Street, Lower Level (the “City Property”), as Newark CEDC’s primary place of business for the period of January 1, 2015 through December 31, 2017; and
WHEREAS, in or around late 2019, Newark CEDC underwent a period of reorganization and reconstruction; and
WHEREAS, the City determined after investigations, staff changes, consultations, interviews, and the installation of new leadership that Invest Newark is fully qualified to continue to perform and undertake economic development activities for and on behalf of the City; and
WHEREAS, pursuant to Resolution 7R6-A (s), adopted on December 10, 2019, the Municipal Council authorized Invest Newark to continue to provide the services previously undertaken by Newark CEDC and Brick City Development Corporation in relation to the administration of the UEZ/BCDC GAP Financing Loan Program until December 31, 2023; and
WHEREAS, pursuant to Ordinance 6PSF-g, adopted on April 7, 2020, the Municipal Council designated Invest Newark to serve as the City’s land bank entity as authorized by Section 4(b) of the New Jersey Land Bank Law P.L 2019. C. 159 and 18:14-2 of the Land Bank Ordinance of the City of Newark, and to exercise within the City the powers, duties, functions, and responsibilities of a land bank entity under the New Jersey Land Bank Law and the Land Bank Ordinance of the City of Newark; and
WHEREAS, pursuant to Resolution 7R2-f, adopted by the Municipal Council on November 14, 2022, the City entered into a Funding Agreement (“2021 Funding Agreement”), for a term of January 1, 2021, through December 31, 2023, for an amount not to exceed Five Million Dollars and Zero Cents ($5,000,000.00) annually, to include a one year extension, together with a Use and Occupancy Agreement for the same period; and
WHEREAS, the City desires to enter into a Funding Agreement, for the term of January 1, 2025, through December 31, 2027, to authorize Invest Newark to continue to perform the services previously undertaken by Invest Newark and
to continue to grant Invest Newark the exclusive right to use and occupy the City Property by entering into a new Use and Occupancy Agreement effective January 1, 2025 until December 31, 2027, attached to the Funding Agreement as Exhibit B; and
WHEREAS, Invest Newark has provided the City with assurances that it has come into compliance with the Reporting Requirements required in the 2009 Funding Agreement, as amended through Resolution 7R3-D(s), adopted December 23, 2014, Resolution 7R3-a, adopted on January 21, 2015, and Resolution 7R3-a(s), adopted on May 26, 2016 (“Required Reporting Requirements”) and will stay in compliance with the same during the term of this Agreement, and Invest Newark represents that it understands that being in compliance with the Required Reporting Requirements herein is a material term of the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Municipal Council of the City of Newark (“Municipal Council”) hereby consents to the continuation of services undertaken by Invest Newark and authorizes the Mayor and/or his designees, the Deputy Mayor/Director of the Department of Economic and Housing Development, and the Business Administrator to enter into and execute a Funding Agreement with Invest Newark, a NJ Non-Profit Corporation (“Invest Newark”) for the period beginning on January 1, 2025 to December 31, 2027, in the form attached hereto, for the purpose of implementing various initiatives, goals and programs in furtherance of economic development and redevelopment related activities on behalf of the City of Newark.
2. The Funding Agreement is ratified from January 1, 2025 until the date of adoption of this authorizing Resolution.
3. The Mayor and or his designees, the Deputy Mayor/Director of the Department of Economic and Housing Development, and the Business Administrator, are hereby authorized to enter into and execute a Use and Occupancy agreement with Invest Newark, the form attached hereto as Exhibit B to the Funding Agreement, to use the City-owned property located at 111 Mulberry Street, Lower Level, Newark, New Jersey, as its primary place of business, for a fee of $1,000.00 per month, from January 1, 2025 through December 31, 2027.
4. The Use and Occupancy Agreement is ratified from January 1, 2025 until the date of adoption of this authorizing Resolution.
5. The Municipal Council consents to the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development extending the Funding Agreement and the Use and Occupancy Agreement for one (1) additional year upon the expiration of the term stated herein.
6. The Funding Agreement is being awarded pursuant to the fair and open procedures of the State Pay-to-Play Law (N.J.S.A. 19:44A-20.5) and pursuant to the provisions of the Local Public Contracts Law (N.J.S.A. 40A:11-5(1)(a)(i)).
7. Attached hereto are Certifications of Funds from the Director of Finance, which state that there are sufficient funds for the purpose set forth hereinabove; and are available for all liability to be incurred during the City of Newark’s temporary budget period, more specifically: [i] Certification of Fund in the amount of $875,000.00, Business Unit: NW026; Account #: 38740; Budget Ref. B2025. The Certification shall be filed along with the original resolution in the Office of the City Clerk. The remainder of the funding for this contract will be subject to appropriation in the 2025 Budget and included in a line item for the award of this contract and said funds will be certified prior to services being provided by the contractor. There will be no expenditure of funds authorized until a Certification of Funds is obtained and a copy filed with the City Clerk:
|
Business Unit |
Department/ID |
Div/Proj. |
Activity |
Account# |
Budget |
|
NW 026 |
G |
|
A |
38740 |
B2025 |
|
NW |
G |
|
A |
|
B |
|
NW |
G |
|
A |
|
B |
|
NW |
G |
|
A |
|
B |
|
NW |
G |
|
A |
|
B |
8. A copy of the fully executed Funding Agreement, Use and Occupancy Agreement herein authorized and the Certifications of Funds shall be filed in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
9. A notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within ten (10) days of the adoption of this Resolution.
STATEMENT
This Resolution ratifies and authorizes the Mayor and/or his designees, the Deputy Mayor/Director of the Department of Economic and Housing Development and the Business Administrator, to enter into and execute a Funding Agreement and a Use and Occupancy Agreement with Invest Newark from January 1, 2025 through December 31, 2027.