Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Application to the Department of Community Affairs for Funding
Name of Project(s): South Ward Small Business Loan Pilot Project
Amount to be Financed: $120,000.00 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 South Ward Small Business Loan Pilot Project.
Additional Information:
Invest Newark will act as the City’s Zone Development Corporation.
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, N.J.S.A. 52:27H-72 extends the effective date of the City of Newark’s (“City’s”) Urban Enterprise Zone (“UEZ”) designation; and
WHEREAS, pursuant to N.J.S.A. 52:27H-67 and Ordinance 6PSF-b (“Ordinance”) adopted on June 24, 2020, the City designated Invest Newark, a NJ Nonprofit Corporation as the City’s 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 authorizes the Newark Municipal Council and Invest Newark 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 said allocation in the amount of Seven Million Six Hundred Fifty-Five Thousand Seventy-Nine Dollars and Zero Cents ($7,655,079.00), which funds, if awarded, must be obligated by June 30, 2025; and
WHEREAS, the Board of Invest Newark, on July 30, 2024, adopted a Resolution (attached hereto as Exhibit A) proposing the undertaking of the Newark UEZ South Ward Small Business Loan Pilot Project (“Project”), and the funding of administrative costs associated therewith as set forth below to be funded from zone assistance funds, and proposing such plan to be jointly adopted by Resolution of the Newark Municipal Council after public hearing; and
WHEREAS, the Newark UEZ South Ward Small Business Loan Pilot Project is to provide UEZ member businesses within the UEZ area of the Bergen-Lyons-Clinton Special Improvement District with access to forgivable loans that can be utilized to make exterior improvements including, but not limited to, signage, lighting, landscaping, building façade, trash enclosures, and awnings; 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 Governing Body 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 Invest Newark to submit an application 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 and Twenty Thousand Dollars and Zero Cents ($120,000.00), to support the Newark UEZ South Ward Small Business Loan Pilot 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 Invest Newark the requested funds it shall be authorized to allocate funds from the zone assistance funds in the amount of $120,000.00 to fund the Newark UEZ South Ward Small Business Loan Pilot Project.
4. If funds are awarded by Fiscal Year 2023 funds must be obligated by June 30, 2025.
5. Invest Newark shall be responsible for keeping all records and shall provide the City 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 South Ward Small Business Loan Pilot Project not to exceed the total UEZ requested amount of $120,000.00 to provide UEZ member businesses within the UEZ area of the Bergen-Lyons-Clinton Special Improvement District with access to forgivable loans that can be utilized to make exterior improvements including, but not limited to, signage, lighting, landscaping, building façade, trash enclosures, and awnings; therefore attracting more customers to the UEZ and creating private sector jobs.