Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Docket No.: N/A
Other Party: Consolidated Rail Corporation
Other Party's Attorney: McCarter & English
Attorney's Address: 100 Mulberry Street, Four Gateway Center, Newark, New Jersey 07102
Settlement Amount: $2,410,154.63
Funding Source: N/A
Additional Comments:
Conrail is paying the City of Newark back Payroll Taxes
Invitation: Business Administrator, Director of Finance, Corporation Counsel
body
WHEREAS, the Department of Finance, Office of Tax Abatement and Special Taxes, conducted an audit of certain businesses in the City of Newark relative to compliance with the Newark Payroll Tax requirements as set forth in the City of Newark's Ordinance, Sections 10:21-1, et seq.; and
WHEREAS, one of the businesses audited was Consolidated Rail Corporation ("Conrail"), located locally at 91 Bay Avenue, Newark, New Jersey (a copy of the City's Audit Notice to Conrail, dated March 15, 2015, is attached); and
WHEREAS, in response to the City's Audit Notice, Conrail offered to pay the City a total of $1,145,226.00 in back Payroll Taxes and interest for the period of 2008 through the first quarter of 2015 (a copy of the June 25, 2015, letter from Conrail's attorney is attached); and
WHEREAS, representatives of the City and Conrail engaged in discussions as to the amount owed by Conrail to the City for back Payroll Taxes, and the parties agreed, subject to approval by the Newark Municipal Council, that Conrail will pay the City a total of $2,410,154.63 in back Payroll Taxes, including interest and penalties for all periods prior to and including September 30, 2015; and
WHEREAS, for the reasons set forth below, the settlement agreement figure reflects a compromised penalty rate; and
WHEREAS, the compromised penalty rate was deemed by the Busi...
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