Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Application to the Department of Community Affairs for Funding
Name of Project(s): Calabro Square Renovation Project
Amount to be Financed: $155,943.00 not to exceed the total UEZ requested amount
Funding Source: UEZ Funds
Local Finance Board meeting date(s): Not Applicable
Project Information:
(Description/ Project No./ Amount Appropriated/Ordinance No.)
Resolution of the Newark Municipal Council authorizing the Submission/Acceptance of an Application to The New Jersey Urban Enterprise Zone Authority for the Newark UEZ Calabro Square Renovation Project.
Additional Information:
Application made in conjunction with Invest Newark.
body
WHEREAS, on August 15, 1983, the State of New Jersey enacted the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq. (the “Act”) to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private sector jobs through public and private investment; and
WHEREAS, the City of Newark (the “City”) was designated as an Urban Enterprise Zone (“UEZ”) under the UEZ Program, and pursuant to N.J.S.A. 52:27H-72, the designation shall remain effective until the end of the 10th State fiscal year next following the effective date of P.L. 2021, c.197; and
WHEREAS, pursuant to N.J.S.A. 52:27H-67, Resolution 7R6-a(S) adopted on December 10, 2019, and Ordinance 6PSF-b adopted on June 24, 2020, the City designated Invest Newark, a NJ Nonprofit Corporation (and/or its predecessors-in-interest) as the “Zone Development Corporation” for the purpose of operating, administrating, managing, and monitoring the City’s Urban Enterprise Zone Program and the “Zone Assistance Funds” derived therefrom; and
WHEREAS, the Ordinance provides that inter alia the Newark Municipal Council and Invest Newark may propose to undertake economic development projects in the enterprise zone and to fund those projects and credit them to the account maintained by Invest Newark for the UEZ, pursuant to N.J.S.A. 52:27H-88; and
WHEREAS, funds from Fiscal Year 2023 are available from the DCA in the amount of Seven Million Six Hundred Fifty-Five Thousand Seventy-Nine Dollars and Zero Cents ($7,655,079.00) of Zone Assistance Funds from the DCA’s UEZ Program, if awarded these funds they must be obligated by June 30, 2025; and
WHEREAS, on July 30, 2024, the Board of Invest Newark, adopted the Resolution, attached hereto, proposing the undertaking of the Newark UEZ Calabro Square Renovation Project, and the funding administrative costs associated therewith as set forth below to be funded from Zone Assistance Funds; and
WHEREAS, the Newark UEZ Calabro Square Renovation Project is to create usable outdoor space for UEZ member businesses, outdoor seating for use by local restaurants, and space for special events in the district such as farmer’s markets and performances; therefore attracting more customers to the UEZ and creating private sector jobs; and
WHEREAS, pursuant to N.J.S.A. 52:27H-88(c), in order to make funds available to the project from monies deposited in the Enterprise Zone Administrative Assistance Funds, the Newark Municipal Council must adopt a Resolution approving the project and authorizing the submission of the application for funding.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Newark Municipal Council hereby authorizes and directs submission of an application in conjunction with Invest Newark for funding to the New Jersey Department of Community Affair’s Enterprise Zone Authority (the “DCA”) not to exceed the total UEZ requested amount of One Hundred Fifty-Five Thousand Nine Hundred Forty-Three Dollars and Zero Cents ($155,943.00), to support the Newark UEZ Calabro Square Renovation Project.
2. The DCA will evaluate and approve the proposed project to be funded from monies deposited in the Enterprise Zone Assistance Fund credited to the account of the Urban Enterprise Zone Authority which is maintained by the State Treasurer for the Enterprise Zone.
3. If the DCA awards the requested funds, it shall be authorized to allocate funds from the Zone Assistance Funds in the amount of $155,943.00 to fund the Newark UEZ Calabro Square Renovation Project.
4. If funds are awarded from Fiscal Year 2023, funds must be obligated by June 30, 2025.
5. Invest Newark will be responsible for keeping all records and shall provide the City of Newark a reporting upon request.
6. Invest Newark shall maintain all documents related to this project, transactions, or services pertaining to this Resolution for a period of five (5) years from the date of the final disposition of these funds, pursuant to N.J.S.A. 52:15c-14(d) and N.J.A.C. 17:44-2.2.
7. A copy of the executed contract herein authorized shall be filed in the Office of the City Clerk.
STATEMENT
This Resolution authorizes the submission/acceptance of an application to the New Jersey Department of Community Affairs’ Enterprise Zone Authority for Enterprise Zone Assistance Funds for the Newark UEZ Calabro Square Renovation Project not to exceed the total UEZ requested amount of One Hundred Fifty-Five Thousand Nine Hundred Forty-Three Dollars and Zero Cents ($155,943.00) to create usable outdoor space for UEZ member businesses, outdoor seating for use by local restaurants, and space for special events in the district such as farmer’s markets and performances; therefore attracting more customers to the UEZ and creating private sector jobs.