Title
Dept/ Agency: Law
Action: ( X ) Ratifying ( X ) Authorizing ( ) Amending
Type of Service: Loan Agreement
Purpose: To authorize the execution of the CY 2024 Transitional Aid (TA) Loan Agreement, as amended, and to provide for additional loan support for CY 2025
Entity Name: State of New Jersey, Department of Community Affairs, Division of Local Government Services
Entity Address: 101 South Broad Street, 2nd Floor, P.O. Box 803, Trenton, New Jersey 08625-0803
Loan Amount: $22,000,000.00 (CY 2024) and $30,000,000.00 (CY 2025
Contract Period: Effective June 28, 2024 through September 30, 2031, and subject to terms of repayment as set forth in the Agreement
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
Additional Information:
This resolution reflects amendments to the CY 2024 Transitional Aid Loan Agreement extending the repayment period and establishes the terms of a new $30,000,000 Transitional Aid Loan for CY 2025.
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WHEREAS, the City of Newark is facing a serious fiscal emergency and has requested aid from the CY 2024 Transitional Aid (TA) to Localities administered by the State of New Jersey, Department of Community Affairs; and
WHEREAS, the Director of the Division of Local Government Services has determined that the City of Newark shall receive an award of Twenty-Two Million Dollars ($22,000,000.00) of Transitional Aid (TA) to Localities; and
WHEREAS, the Department of Community Affairs and the City of Newark have agreed to the terms of a Loan Agreement (the "Agreement"); and
WHEREAS, the Loan Agreement requires an amendment to address the City's structural budget and repayment timeline for CY 2024, and to provide for an additional $30,000,000.00 loan in support of the City's CY 2025 budg...
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