Title
Dept/ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: 2024 Annual Budget for the Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitor Bureau (GNCVB)
Purpose: Introducing and Approving the 2024 Annual Budget of Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitor’s Bureau
Amount: $2,577,819.00
Budget Period: January 1, 2024 through December 31, 2024
Additional Information:
Ordinance 6PSF-h adopted on June 19, 2013, authorized the creation of the Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau.
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WHEREAS, on June 19, 2013, the Municipal Council adopted Ordinance 6PSF-h, which the Mayor of the City of Newark created and designated within the City of Newark as a Special Improvement District pursuant to N.J.S.A. 40:56-65 et seq. (the “Ordinance”), to be known as Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau; and
WHEREAS, pursuant to N.J.S.A. 40:56-65(c), the Greater Newark Tourism Improvement District Management Corporation (“the District Management Corporation”) a non-profit corporation, was designated by the Ordinance as the management entity for the Special Improvement District; and
WHEREAS, the District Management Corporation is comprised of all hotel properties within the City (the “District”) to provide supplemental services within the District and collect a special license fee assessment on all affected property within the District, the fee assessments shall be collected by the owners or operators of hotel properties within the District as an additional room charge imposed upon such hotel owners and operators based upon actual room rentals and paid to the City of Newark in quarterly installments together with regular real property tax payments for the purpose of promoting the economic and general welfare of the District and the municipality; and
WHEREAS, the District Management Corporation provides administrative and other services to benefit businesses, employees, residents, visitors and consumers in the District and shall have all powers necessary and requisite to effectuate the purposes of the Ordinance and the District; and
WHEREAS, in accordance with N.J.S.A. 40:56-80, the Municipal Council must review and approve a report of estimated costs and proposed assessments and fees to be charged for the operation of the District for the fiscal year; and
WHEREAS, in accordance with Section 7(b) of the Ordinance, the District Management Corporation shall submit a detailed business plan and budget, including a report explaining how the budget contributes to the goals and objectives of the District, for the upcoming year for approval by the Municipal Council in accordance with the procedure set forth in N.J.S.A. 40:56-84; and
WHEREAS, the report of cost estimates, assessments and fees to be charged and the annual budget for the District Management Corporation contribute to the goals and objectives for the District; and
WHEREAS, in accordance with Section 7(e) of the Ordinance, the District Management Corporation shall submit an annual report to the Municipal Council consisting of a narrative covering the previous year’s operation and detailed financial statement and shall include a report on the hiring commitment established in Section 6 of the Ordinance; and
WHEREAS, the estimated annual budget for the 2024 calendar year (January 1, 2024 through December 31, 2024), is estimated to be Two Million Five Hundred Seventy-Seven Thousand Eight Hundred Nineteen Dollars and Zero Cents ($2,577,819.00), for the District, attached hereto, was unanimously approved by the District Management Corporation at its July 12, 2023, Board of Directors’ Meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The estimated annual budget for the calendar year 2024 (January 1, 2024 through December 31 , 2024), in the amount Two Million Five Hundred Seventy-Seven Thousand Eight Hundred Nineteen Dollars and Zero Cents ($2,577,819.00)(“Budget”), for the Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention & Visitors Bureau (the "District Management Corporation"), as approved by the District Management Corporation at its July 12, 2023, meeting of the Board of Directors, is hereby introduced and approved, subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-h, adopted on June 19, 2013, and as set forth in 40:56-84.
2. The Budget is ratified back to January 1, 2024, through the date of the adoption of this authorizing Resolution by the Newark Municipal Council.
3. The Tax Assessor is directed to do the following:
(a) Prepare an assessment roll specifying the amounts specifically assessed against each benefitted and assessable property in the District in proportion to the benefit conferred, based upon the approved budget in accordance with the procedures prescribed in N.J.S.A. 40:56-80(c). Such assessment roll shall include a description of each property and the names of the owners; and
(b) File the assessment roll in the Office of the City Clerk to be available for public inspection.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is directed to do the following:
(a) Schedule a public hearing on the budget and the amount of the assessments not less than twenty-eight (28) days from the date of this Resolution;
(b) At least ten (10) days prior to the date of the hearing publish:
(i) a notice setting the time and place of the public hearing on the budget and amounts of the special assessments;
(ii) a copy of the entire budget in a newspaper of general circulation in the City of Newark;
(c) At least ten (10) days before the date of the scheduled hearing:
(i) Post a complete copy of the approved budget in City Hall in the customary location for posting public notices;
(ii) Post a complete copy of the assessment roll in City Hall in the customary location for posting public notices;
(iii)Make available a copy of the budget to any person requesting it up to and including the date of the public hearing.
5. Upon approval of the assessment roll with any changes approved by the Municipal Council, the City Clerk shall immediately certify a copy of the assessment roll to the County Tax Board to be effective as of January 1, 2024.
6. The amount anticipated to be raised by the special assessments to support the annual budget of the District Management Corporation for the calendar year 2024 (January 1, 2024 through December 31, 2024) is estimated to be Two Million Five Hundred Seventy-Seven Thousand Eight Hundred Nineteen Dollars and Zero Cents ($2,577,819.00). Said total estimated amount of the special assessments set forth in the estimated and approved budget shall be paid over to the District Management Corporation in installments of 25% of the total estimated assessments quarterly.
7. The Deputy Mayor/Director of the Department of Economic and Housing Development shall file a certified copy of this Resolution with the Office of the City Clerk.
8. The Office of the City Clerk shall forward certified copies of this Resolution to the Business Administrator, the Director of the Department of Finance and the Tax Collector.
STATEMENT
This Resolution ratifies, introduces and authorizes the estimated annual budget, for the calendar year 2024 (January 1 , 2024 through December 31, 2024), of Greater Newark Tourism Improvement District Management Corporation d/b/a The Greater Newark Convention and Visitors Bureau in the amount Two Million Five Hundred Seventy-Seven Thousand Eight Hundred Nineteen Dollars and Zero Cents ($2,577,819.00), subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-h, adopted on June 19, 2013, and as set forth in N.J.S.A. 40:56-80 and N.J.S.A. 40:56-84.