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AN ORDINANCE AMENDING THE ORIGINAL TAX ABATEMENT GRANTED TO 50 MOUNT PROSPECT GARDENS URBAN RENEWAL, LLC, 17 CLUB WAY, CEDAR GROVE, NEW JERSEY 07009, PURSUANT TO THE LONG TERM TAX EXEMPTION LAW TO EXTEND THE TIMEFRAME TO CONSTRUCT THE PROJECT CONSISTING OF A NEW FOUR (4) STORY BUILDING CONSISTING OF TWENTY-EIGHT (28) MARKET RATE RESIDENTIAL RENTAL UNITS AND SEVEN (7) AFFORDABLE HOUSING UNITS AND ASSOCIATED PARKING LOCATED AT 905-913 MT. PROSPECT AVENUE, NEWARK, NEW JERSEY AND IDENTIFIED ON THE CITY’S TAX MAP AS BLOCK 841, LOT 26 AND 37 (THE “PROJECT”) NORTH WARD
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WHEREAS, on April 21, 2021, the Newark Municipal Council adopted Ordinance 6PSF-d (the “Ordinance”, a copy of which is attached hereto as Exhibit A), granting a long term tax abatement to 50 Mount Prospect Gardens Urban Renewal, LLC, 17 Club Way, Cedar Grove, New Jersey 07009, pursuant to of the Long Term Tax Exemption Law as amended and supplemented, N.J.S.A. 40A:20-1, et seq. (the “Long Term Tax Exemption Law”), for a fifteen (15) year term for a project to construct a new four (4) story building consisting of twenty-eight (28) market rate residential rental units and seven (7) affordable housing units and associated parking located in the North Ward at 905-913 Mt. Prospect Avenue, Newark, New Jersey and identified on the city’s Tax Map as Block 841, Lot 26 and 37 (collectively, the “Project”); and
WHEREAS, the Parties entered into that certain Financial Agreement, dated June 18, 2021, (the “Original Financial Agreement”, a copy of which is attached hereto as Exhibit B, and together with Amendment No. 1 to Financial Agreement, the “Financial Agreement”); and
WHEREAS, construction of the Project was delayed and the Project has not been completed within the timeframe set forth in the Original Financial Agreement; and
WHEREAS, the Parties desire to extend the timeframe for the Entity to complete the Project by no later than December 18, 2026; and
NOW, THEREFORE, BE IT ORDAINED 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 Amendment No. 1 to Financial Agreement in substantially the form attached hereto as Exhibit C.
2. An executed copy of the Amendment No. 1 to Financial Agreement authorized by this ordinance shall be filed and maintained with the City Clerk.
3. The Entity shall in the operation of the Project comply with all laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin, or ancestry.
4. 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 and the Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.
5. The adoption of this ordinance is expressly conditioned upon the requirement that the Entity pay the City all outstanding taxes and/service charges, and water/sewer charges within thirty (30) days of the date of the adoption of this ordinance. If the Entity fails to timely satisfy these requirements, this ordinance and the approval granted herein shall be null and void.
6. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance authorizes an amendment to the original tax abatement granted to 50 Mount Prospect Gardens Urban Renewal, LLC, 17 Club Way, Cedar Grove, New Jersey 07009, an urban renewal entity qualified to do business under the provisions of the Long Term Tax Exemption Law as amended and supplemented, N.J.S.A. 40A:20-1, et seq., to extend the timeframe to construct the Project by no later than December 18, 2026, consisting of a new a new four (4) story building consisting of twenty-eight (28) market rate residential rental units and seven (7) affordable housing units and associated parking located at 905-913 Mt. Prospect Avenue, Newark, New Jersey and identified on the city’s Tax Map as Block 841, Lot 26 and 37.
EXHIBIT A
Ordinance 6PSF-d
EXHIBIT B
Original Financial Agreement
EXHIBIT C
Amendment No. 1 To Financial Agreement