Title
Dept/ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: 2025 Annual Budget of Newark Alliance, Inc.
Purpose: Introducing and Approving the 2025 Annual Budget of the Newark Alliance, Inc.
Amount: $2,312,850.00
Budget Period: January 1, 2025 through December 31, 2025
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 Visitor’s Bureau, to serve as the District Management Corporation of the Greater Newark Tourism Improvement District. Ordinance 6PSF-h adopted on January 8, 2025, designated the Newark Alliance, Inc. as the District Management Corporation Management Corporation for the Greater Newark Tourism Improvement District, thereby replacing the Greater Newark Tourism Improvement District Management Corporation.
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WHEREAS, on June 19, 2013, the Newark Municipal Council (“Municipal Council”) adopted Ordinance 6PSF-h, whereby the Mayor of the City of Newark created within the City of Newark (“City”) a Special Improvement District, pursuant to N.J.S.A. 40:56-65 et seq. (“Ordinance”) to be known as the Greater Newark Tourism Improvement District (“Special Improvement District”) and designated the Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitor’s Bureau as the District Management Corporation; and
WHEREAS, subsequently on January 8, 2025, pursuant to N.J.S.A. 40:56-65(c), the Municipal Council adopted Ordinance 6PSF-h, in which the Mayor of the City of Newark designated the Newark Alliance, Inc., a New Jersey nonprofit corporation, (the “Newark Alliance”) as the District Management Corporation for the Special Improvement District, which became effective on April 1, 2025, and replaced, in its entirety, the Greater Newark Convention and Visitor Bureau as the District Management Corporation; and
WHEREAS, the Special Improvement District is comprised of certain designated-by-ordinance hotel industry properties, transient accommodations and businesses to provide supplemental services within the Special Improvement District and collect a special license fee assessment on all affected property within the Special Improvement District, and the fee assessments shall be collected by the owners or operators of hotel, transient accommodation, or transient space marketplace properties within the Special Improvement District as a regular additional room charge imposed upon such hotel, transient accommodation, or transient space marketplace owners and operators based upon actual room rentals and paid to the City in quarterly installments together with regular real property tax payments for the purpose of promoting tourism, economic growth and employment within the Special Improvement District and the municipality; and
WHEREAS, the District Management Corporation provides administrative and other services to benefit business owners and operators, residents and consumers in the Special Improvement District and shall have all powers necessary and requisite to effectuate the purposes of law, the Ordinance and powers of the Special Improvement 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 Special Improvement 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, in accordance with Section 7(e) of the Ordinance, the District Management Corporation shall submit 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 Special Improvement 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
WHEREAS, the estimated annual budget for the 2025 calendar year (January 1, 2025 through December 31, 2025) is estimated to be Two Million Six Hundred Forty Thousand Three Hundred Sixteen Dollars and Zero Cents ($2,640,316.00), of which Two Million Three Hundred Twelve Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,312,850.00) shall be supported by income from the Special Improvement District, for the Special Improvement District, attached hereto, was unanimously approved by the District Management Corporation at its May 30, 2025, Board of Directors Meeting.
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 2025 (January 1, 2025 through December 31 , 2025), in the amount of Two Million Six Hundred Forty Thousand Three Hundred Sixteen Dollars and Zero Cents ($2,640,316.00), of which Two Million Three Hundred Twelve Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,312,850.00) (the “Budget”) shall be supported by income from the Special Improvement District, for the Newark Alliance, Inc. (“District Management Corporation”), as approved by the District Management Corporation at its May 30, 2025, 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 and January 8, 2025, and as set forth in N.J.S.A. 40:56-84.
2. The Budget is ratified back to January 1, 2025, through the date of the adoption of this authorizing Resolution by the Newark 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 Special Improvement 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;
(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;
(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, 2025.
6. The amount anticipated to be raised by the special assessments to support the annual budget of the District Management Corporation for the calendar year 2025 (January 1, 2025 through December 31, 2025) is estimated to be Two Million Three Hundred Twelve Thousand Eight Hundred Fifty and Zero Cents ($2,312,850.00). 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 shall file a certified copy of this Resolution with the Office of the City Clerk.
8. The Office of the City Clerk shall forward a certified copy of this Resolution to the Business Administrator, Finance Director and Manager, Tax Abatement & Special Taxes.
STATEMENT
This Resolution ratifies, introduces and authorizes the estimated annual budget, for the calendar year 2025 (January 1, 2025 through December 31, 2025), of the Newark Alliance, Inc. in the amount Two Million Three Hundred Twelve Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,312,850.00), subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-H, adopted on June 19, 2013 and January 8, 2025, and as set forth in N.J.S.A. 40:56-80 and N.J.S.A. 40:56-84.