Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( X ) Amending
Type of Service: Application for an Amendment to a Long-Term Tax Abatement
Purpose: Amendment and Restatement of the Financial Agreement
Entity Name: 609 Broad Street, LLC
Entity Address: 1865 Palmer Avenue, Suite 203, Larchmont, New York 10538
Abatement Period: 30 years
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
609-633 Broad Street/Block 18/Lot 39/Central Ward
Additional Information:
Original tax abatement granted by Resolution7R3-C(S) 100413
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WHEREAS, on October 4, 2013, the Municipal Council of the City of Newark adopted Resolution 7R3-C(S) granting a long term tax exemption to 609 Broad Street, LLC, a limited liability company having its principal office at 1865 Palmer Avenue, Suite 203, Larchmont, New York 10538 ("Entity") for a thirty-year term for a mixed-use project ("Project") pursuant to the provisions of the New Jersey Housing and Mortgage Finance Law of 1983, as amended and supplemented, N.J.S.A. 55:14K-1 et. seq. ("HMFA Law") on real property commonly known as 609-633 Broad Street and identified on the City of Newark's tax map as Block 18, Lot 39 (the "Property") and authorizing the Mayor to execute a Financial Agreement with Entity governing the terms and conditions of the long term tax exemption (the "Original Financial Agreement"); and
WHEREAS, the Entity and the Mayor, on behalf of the City of Newark, entered into the Original Financial Agreement on January 6, 2015; and
WHEREAS, the Entity is seeking the City's consent to amend and restate the Original Financial Agreement (the "Amended Financial Agreement") for the purpose of revising the scope of the Project (the "Revised Project") and making certain other revisions to the Financial Agreement in order to facilitate New Jersey Housing and Mortgage Finance Agency ("HMFA") financing for the Project; and
WHEREAS, the Municipal Council has reviewed the Amended Financial Agreement and determined that but for the Amended Financial Agreement, the Revised Project could not proceed; and
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark is hereby authorized to execute, on the City's behalf, the Amended Financial Agreement with 609 Broad Street, LLC, a limited liability company having its principal office at 1865 Palmer Avenue, Suite 203, Larchmont, New York 10538, in the form attached hereto.
2. An executed copy of the Amended Financial Agreement authorized by this resolution shall be filed and maintained with the City Clerk.
3. The Revised Project, when completed, will conform with all State laws and ordinances of the City of Newark relating to its construction and use.
4. The term of the tax abatement shall remain unchanged from the Original Financial Agreement at thirty (30) years from the Annual Service Charge Start Date (as defined in the Amended Financial Agreement), but shall not extend beyond the date in which the HMFA loan for the Revised Project is paid in full, and the Entity shall be subject to the provisions and conditions of the HMFA Law and the Amended Financial Agreement annexed hereto.
5. The Revised Project is approved subject to any approvals that may be required by the Department of Community Affairs of the State of New Jersey ("DCA") and the HMFA.
6. The Affirmative Action Program now on file in the Office of the City Clerk is declared to be a material condition of the Amended Financial Agreement authorized by this Resolution.
7. The Entity shall in the operation of the Revised Project comply with all applicable laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin or ancestry.
8. The Entity shall file an employment report (herein described below) with the Office of Affirmative Action who shall forthwith after receiving the report send a copy thereof to the City Clerk. The Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.
9. As of the Annual Service Charge Start Date, the Entity shall pay an estimated quarterly service charge of $72,100.25 to the City until the correct amount due from the Entity is determined by the City's Acting Director of Finance based upon the auditor's report that is required to be submitted under the Amended Financial Agreement. After the auditor's report required under the Amended Financial Agreement has been accepted by the City's Acting Director of Finance, and within 90 days thereafter, the City and the Entity will adjust any over or under payment so made or needed to be made for the particular period covered by the auditor's report.
10. The annual service charge shall be calculated based on 6.28% of the annual gross revenue project revenues from the Revised Project.
11. The Entity shall submit to the City of Newark's Department of Economic and Housing Development or its assigned agent all documentation which it is required to submit and maintain in accordance with the terms and conditions of the financing to be provided by the HMFA and the DCA and all other sources of funding received.
12. The Entity shall submit to the City of Newark's Law Department and Department of Economic and Housing Development copies of the mortgage and all other loan documents executed between the Entity and the HMFA within 30 days of the closing.
13. The City Clerk's Office of the City of Newark shall forthwith submit a certified copy of this Resolution approving the Amended Financial Agreement to the Director of the Division of Local Government Services.
STATEMENT
This Resolution approves an Amended Financial Agreement granting a long term tax exemption to 609 Broad Street, LLC, a limited liability company having its principal office at 1865 Palmer Avenue, Suite 203, Larchmont, New York 10538 (pursuant to the New Jersey Housing and Mortgage Financing Agency Law of 1983, N.J.S.A. 55:14K-1 et seq.) for a term of thirty (30) years for a mixed use project on property located at 609-633 Broad Street, Newark, New Jersey and identified on the City's tax map as Block 18, Lot 39, to rehabilitate an existing vacant four story building and construct a new building on the Property which will collectively contain 40,000 square feet of retail space, approximately 160 residential units (with a unit mix of affordable and market rate units), and approximately 40,000 square feet of commercial, community and/or office uses, along with an underground parking garage.