Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing (X ) Amending
Purpose: Application to Local Finance Board for approval
of bond ordinance
Name of Project(s): PSE&G Redevelopment Projects
Amount to be Financed: $25,000,000.00
Funding Source: Bonds
Local Finance Board meeting date(s): August 8, 2018
Project Information:
(Description/ Project No./ Amount Appropriated/Ordinance No.)
RESOLUTION OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, NEW JERSEY APPROVING THE SUBMISSION OF AN APPLICATION TO THE LOCAL FINANCE BOARD PURSUANT TO N.J.S.A 40A:12A-29(a)(3) and N.J.S.A. 40A:12A-67(g) FOR APPROVAL OF THE MODIFICATION OF REDEVELOPMENT PROJECTS BUDGETS PREVIOUSLY APPROVED BY THE LOCAL FINANCE BOARD IN CONNECTION WITH THE ISSUANCE OF PSE&G REDEVELOPMENT AREA BONDS
Additional Information:
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WHEREAS, pursuant to and in accordance with the provisions of the Redevelopment Area Bond Financing Law, constituting Chapter 310 of the Pamphlet Laws of 2001 of the State, and the acts amendatory thereof and supplemental thereto (the “Redevelopment Bond Law”, as codified in N.J.S.A. 40A:12A-64 et seq.), specifically N.J.S.A. 40A:12A-66(a), the City of Newark (the “City”) is authorized to provide for tax abatement within a redevelopment area and for payments in lieu of taxes (“PILOTS”) in accordance with certain applicable provisions of the Long Term Tax Exemption Law, constituting Chapter 431 of the Pamphlet Laws of 1991 of the State, and the acts amendatory thereof and supplement thereto (the “Long Term Tax Law”, as codified in N.J.S.A. 40A:20-1 et seq.); and
WHEREAS, on March 23, 2016, the City submitted an application to the Local Finance Board pursuant to and in accordance with the provisions of the Redevelopment Bond Law, specifically N.J.S.A. 40A:12A-67(a), to obtain (i) its approval of the issuance of $25,000,000.00 aggregate principal amount of Redevelopment Area Bonds (PSEG Project) (the “Bonds”) pursuant to N.J.S.A. 40A:12A-67(g), (ii) its approval of the private sale of the Bonds to such purchaser as may be designated by Municipal Council pursuant to N.J.S.A. 40A:12A-29a, (iii) its approval of redevelopment projects to be implemented by the City and/or private developers and the allocation of the proceeds of the Bonds to such projects and (iv) and such other approvals and/or findings as may be required in connection therewith, including without limitation, as may be required pursuant to under the terms of the Municipal Qualified Bond Act, N.J.S.A. 40A:3-1 et seq. and the School Qualified Bond Act, N.J.S.A. 18A:24-85 et seq.; and
WHEREAS, on April 13, 2016, the Local Finance Board, after review of the application, investigation of the redevelopment projects and holding a public hearing thereon, adopted resolutions approving the terms and conditions for the issuance of the Bonds, including the approval of the redevelopment projects and the funding thereof through capital grants and the specific allocation of the amount of $23,500,000.00 from the proceeds of the Bonds to each of such projects; and
WHEREAS, on February 14, 2018, the City issued the Bonds pursuant to the Redevelopment Bond Law; and
WHEREAS, pursuant to the provisions of the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., specifically section 29 (a)(3) thereof and Redevelopment Bond Law, specifically N.J.S.A. 40A:12A-67(g), the implementation of the redevelopment projects by the City and/or private developers is subject to the review and approval of the Local Finance Board; and
WHEREAS, as a result of a two-year delay in the issuance of the Bonds, modifications to the budgets of the redevelopment projects originally approved by the Local Finance Board have occurred and it is necessary to amend the sources and uses for each affected redevelopment project and to reallocate the proceeds of the Bonds among such affected redevelopment projects as a result of such delay; and
WHEREAS, the City desires to make application to the Local Finance Board to obtain approval of the budget modifications of the redevelopment projects previously approved by the Local Finance Board, including the reallocation of the proceeds of the Bonds in accordance with such budget modifications; and
WHEREAS, the Municipal Council of the City believes that:
(a) it is in the public interest to accomplish such purposes;
(b) said purpose or improvements are for the health, welfare, convenience or betterment of the inhabitants of the City;
(c) the amounts to be expended for such purpose or improvements are not unreasonable or exorbitant; and
(d) the proposal is an efficient and feasible means of providing services for the needs of the inhabitants of the City and will not create an undue financial burden to be placed upon the City.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The application to the Local Finance Board is hereby authorized and approved, and the City's Business Administrator, Chief Financial Officer, Acting Director of the Department of Economic and Housing Development, Bond Counsel, Financial Advisor and Auditor, along with other representatives of the City, are hereby authorized to prepare such application, to file such application with the Local Finance Board in connection with the above transaction and to represent the City in matters pertaining thereto.
2. The City Clerk is hereby directed to prepare and file a copy of the proposed resolution with the Local Finance Board as part of such application.
3. The Local Finance Board is hereby respectfully requested to consider such application and to record its findings, recommendations and/or approvals as provided by the applicable New Jersey Statute, including causing its consent to be endorsed upon certified copies of the ordinances (as applicable).
4. This Resolution shall take effect immediately.
STATEMENT
This resolution approves submission of an application to the Local Finance Board for the Approval of Budget Modifications to Redevelopment Projects that received an allocation of proceeds of the PSE&G Bonds as approved by the Local Finance Board on April 13, 2016.