Title
Dept/ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: 2026 Annual Budget of Newark Alliance, Inc.
Purpose: Amending the 2026 Annual Budget of Newark Alliance, Inc.
Amount: $2,267,850.00
Budget Period: January 1, 2026 through December 31, 2026
Additional Information:
Amending the 2026 Annual Budget for Newark Alliance, Inc., District Management Corporation for the Greater Newark Tourism Improvement District, to conform with Ordinance 6PSF-a adopted April 10, 2026 and Ordinance 6PSF-b adopted July 15, 2026.
The amendment clarifies payment of the License Fee is to be collected by the Department of Economic and Housing Development and also increases the administrative fee from 1% to 2%.
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WHEREAS, on May 6, 2026, the Municipal Council adopted Resolution 7R2-g, which ratified and authorized the City Clerk to read, by title, the Newark Alliance, Inc.’s District Management Corporation 2026 Annual Budget for the Newark Alliance, Inc. d/b/a Greater Newark Tourism Improvement District; and
WHEREAS, Resolution 7R2-g authorized the 2026 Annual Budget of the Newark Alliance, Inc., acting as the District Management Corporation for the Greater Newark Tourism Improvement District, in the amount of Two Million Two Hundred Sixty-Seven Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,267,850.00); and
WHEREAS, Resolution 7R2-g included certain language referencing the Special Assessment and the role of the Tax Collector and/or Department of Finance in connection with the collection and withholding of monies relating to the Tourism Improvement District License Fee; and
WHEREAS, subsequent review by the Tax Collector determined that Resolution 7R2-g should be amended to conform with Ordinance 6PSF-a adopted April 1, 2026 and 6PSF-b adopted July 15, 2026, which amended Title X, Finance and Taxation, Chapter 10, Article 32, Special Improvement Districts, Section 10:32-5.4H of the Revised General Ordinances of the City of Newark, 2000, as amended and supplemented; and
WHEREAS, Ordinance 6PSF-a clarified that the Greater Newark Tourism Improvement District License Fee is administered and collected through the Department of Economic and Housing Development, or its designee, and not by the Tax Collector; and
WHEREAS, Ordinance 6PSF-a further provides that the Department of Economic and Housing Development, through its designee, shall administer the collection of the Tourism Improvement District License Fee and related remittances for the Greater Newark Tourism Improvement District; and
WHEREAS, the Tax Collector does not collect the Tourism Improvement District License Fee and does not disperse the Two Million Twelve Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,012,850.00) referenced in Resolution 7R2-g as being supported by income from the Special Improvement District; and
WHEREAS, because the Tax Collector does not collect the Tourism Improvement District License Fee, the Director of Finance does not withhold the quarterly administrative fee from monies collected by the Tax Collector; and
WHEREAS, the administrative fee applicable to the Greater Newark Tourism Improvement District License Fee was increased from one percent (1%) to two percent (2%) pursuant to Ordinance 6PSF-b, and Resolution 7R2-g should be amended to accurately reflect said administrative fee; and
WHEREAS, the Municipal Council desires to amend Resolution 7R2-g to conform with Ordinance 6PSF-a and Ordinance 6PSF-b and to avoid any ambiguity regarding the collection, administration, remittance, and administrative fee applicable to the Greater Newark Tourism Improvement District License Fee.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-g adopted by the Municipal Council on May 6, 2026, is hereby amended to conform with Ordinance 6PSF-a adopted April 1, 2026 and Ordinance 6PSF-b adopted July 15, 2026.
2. Any reference in Resolution 7R2-g indicating that the Tax Collector collects the Greater Newark Tourism Improvement District License Fee, or any portion of the Two Million Twelve Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,012,850.00) identified as income from the Special Improvement District, is hereby amended and clarified to state that the Tax Collector does not collect said fee or funds.
3. The Greater Newark Tourism Improvement District License Fee shall be administered and collected by the Department of Economic and Housing Development, or its designee, in accordance with Ordinance 6PSF-a and all applicable provisions of the Revised General Ordinances of the City of Newark.
4. Any reference in Resolution 7R2-g indicating that the Director of Finance shall withhold a quarterly administrative fee from funds collected by the Tax Collector is hereby amended and clarified to state that the Director of Finance shall not withhold said administrative fee from Tax Collector collections, as the Tax Collector is not responsible for collection of the Tourism Improvement District License Fee.
5. The administrative fee applicable to the Greater Newark Tourism Improvement District License Fee shall be two percent (2%), consistent with the ordinance amendment, and the budget documentation and related records shall be corrected accordingly.
6. The Municipal Council hereby ratifies and authorizes the Newark Alliance, Inc.’s District Management Corporation 2026 Annual Budget for the Greater Newark Tourism Improvement District, as amended herein, in the amount of Two Million Two Hundred Sixty-Seven Thousand Eight Hundred Fifty Dollars and Zero Cents ($2,267,850.00).
7. Except as expressly amended herein, all other terms, authorizations, findings, and approvals contained in Resolution 7R2-g shall remain in full force and effect.
8. A copy of this Resolution shall be placed on file in the Office of the City Clerk by the Department of Economic and Housing Development.
9. The City Clerk is hereby authorized and directed to forward certified copies of this Resolution to the Business Administrator, the Director of Finance, the Tax Collector, the Director of the Department of Economic and Housing Development, and Newark Alliance, Inc.
STATEMENT
This Resolution ratifies and amends Resolution 7R2-g adopted May 6, 2026, concerning the 2026 Annual Budget for Newark Alliance, Inc., the District Management Corporation for the Greater Newark Tourism Improvement District, to conform with Ordinance 6PSF-a adopted April 1, 2026 and Ordinance 6SPF-b adopted July 15, 2026. The amendment clarifies that the Tourism Improvement District License Fee is administered and collected by the Department of Economic and Housing Development, or its designee, and not by the Tax Collector; that the Director of Finance does not withhold the administrative fee from Tax Collector collections; and that the applicable administrative fee is two percent (2%).