Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Execute a Community Benefits Agreement
Purpose: To authorize the execution of a Community Benefits Agreement.
Entity Name: New Jersey Performing Arts Corporation
Entity Address: 1 Center Street, Newark, New Jersey 07102
Funding Source: Aspire Program Act, N.J.S.A. 34:1B-322 et seq.
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
1-19 Center Street/Block 17/Lot 1.01/Central Ward
21-43 Center Street/Block 17/Lot 1.02/Central Ward
40-44 Center Street/Block 126.01/Lot 21.01/Central Ward (recently consolidated from Lots 9, 21, 39, 41 and 42)
Additional Information:
The Community Benefits Agreement between the City of Newark, New Jersey Performing Arts Corporation (“NJPAC”) and the New Jersey Economic Development Authority as a condition of receiving tax credits incentives under the Aspire Program Act, N.J.S.A. 34:1B-322 et seq., towards the construction of a single phased, transformative, mixed-use, predominantly residential redevelopment project, of 577,940 total square feet.
The residential component represents approximately (350) units comprised of 384,840 square feet. There will be 10,500 square feet of office space, 12,600 square feet of retail space, 53,000 square feet of space for an arts education and community facility and improvements to the existing 100,000 square foot facility, located at 1-19 Center Street, Block 17, Lot 1.01; 21-43 Center Street, Block 17, Lot 1.02, and 40-44 Center Street, Block 126.01, Lot 21.01 (recently consolidated from Lots 9, 21, 39, 41 and 42) in Newark, Essex County, New Jersey, 07102 (an enhanced area).
A Public Hearing will be held on Thursday, November 7, 2024 in City Hall, Council Chamber at 12:30 P.M.
body
WHEREAS, pursuant to the New Jersey Economic Recovery Act of 2020, the New Jersey Economic Development Authority (the "NJEDA") has established the Aspire Program Act, N.J.S.A. 34:1B-322 et seq. (the "Act") to encourage economic development and job creation; and
WHEREAS, under the Act, projects with total project costs equal to or greater than $10,000,000.00 must enter into a community benefits agreement (the "CBA") with NJEDA and the municipality or county in which the project is located; and
WHEREAS, NJPAC is proposing to develop a project with an estimated total project cost of approximately $356,087,689.00 for the construction of a single phased, transformative, mixed use, predominantly residential redevelopment project, of 577,940 total square feet. The residential component represents approximately 350 units comprised of 384,840 square feet. There will be 10,500 square feet of office space, 12,600 square feet of retail space, 53,000 square feet of space for an arts education and community facility and improvements to the existing 100,000 square foot facility (the “Project”), located at 1-19 Center Street, Block 17, Lot 1.01, 21-43 Center Street, Block 17, Lot 1.02, and 40-44 Center Street, Block 126.01, Lot 21.01 (recently consolidated from Lots 9, 21, 39, 41 and 42) in the Central Ward, Newark, Essex County, New Jersey, 07102 (an enhanced area). (the “Proposed NJ Site”); and
WHEREAS, prior to entering into a CBA, the Act provides that the Governing Body of the municipality in which the Project is located shall hold at least one public hearing at which the Governing Body shall hear testimony from residents, community groups and other stakeholder regarding the community benefit that the agreement shall address; and
WHEREAS, a public hearing was held on November 7, 2024 which laid out the community benefits of the Project; and
WHEREAS, as set forth in Exhibit B of the CBA, NJPAC will contribute the following community benefits:
i. $300,000.00 for a local sourced public art program on and around NJPAC’s campus to be managed by NJPAC (murals, installations, etc.).
ii. $150,000.00 of funding directly to the City for Arts and Education District uses including; signage program, transportation, programing, etc. to be managed by the City of Newark.
iii. $150,000.00 to be used during construction for Job Training Programs and Workforce Hiring Efforts that benefit local residents, and local MWBE association with local advocacy entities and the City.
iv. $150,000.00 of funding directly to the City for Arts Initiative programs to be managed by the City of Newark, Division of Arts and Cultural Affairs.
v. $250,000.00 of programming in NJPAC's renovated Chambers Plaza with items like food trucks, festivals, community events, concerts, health and wellness events, educational events, over the next three years.
; and
WHEREAS, NJPAC and the City along with NJEDA wish to enter into a CBA to set forth the terms and conditions relating to the delivery and offering of such benefits of the Project to the residents in and around the City.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The aforementioned recitals are incorporated by reference as if fully set forth herein.
2. The Community Benefits Agreement ("CBA") is attached hereto as Exhibit A and incorporated into this legislation, with minutes from this public hearing to be attached thereto upon approval thereof.
3. The Mayor and the City Clerk are hereby authorized to execute the CBA in substantially the form attached hereto, with such additions, deletions and modifications as may be necessary or desirable in consultation with counsel.
4. If any part of this Resolution shall be deemed invalid, such parts shall be severed and the invalidity thereby shall not affect the remaining parts of this Resolution.
5. A copy of this Resolution shall be available for public inspection at the Office of the City Clerk.
6. This Resolution shall take effect immediately.
STATEMENT
This Resolution hereby authorizes the execution of a Community Benefits Agreement between the City of Newark, New Jersey Performing Arts Corporation (“NJPAC”) and the New Jersey Economic Development Authority as a condition of receiving Aspire incentives under the Aspire Program Act, N.J.S.A. 34:1B-322 et seq., by NJPAC towards the construction of a single phased, transformative, mixed use, predominantly residential redevelopment project, of 577,940 total square feet. The residential component represents approximately 350 units comprised of 384,840 square feet. There will be 10,500 square feet of office space, 12,600 square feet of retail space, 53,000 square feet of space for an arts education and community facility and improvements to the existing 100,000 square foot facility (the “Project”), located at 1-19 Center Street, Block 17, Lot 1.01, 21-43 Center Street, Block 17, Lot 1.02, and 40-44 Center Street, Block 126.01, Lot 21.01 (recently consolidated from Lots 9, 21, 39, 41 and 42) in Newark, Essex County, New Jersey, 07102 (an enhanced area), (the “Proposed NJ Site”), (Central Ward).