Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Resolution Endorsing
Purpose: Resolution of the Municipal Council of the City of Newark Consenting to a Certain Transfer of Membership Interest in Spring Street Commons Urban Renewal, LLC to Spring Street Commons OZ Partnerships, LLC
Additional Information:
Ordinance 6PSF-f adopted on July 11, 2018
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WHEREAS, Spring Street Commons Urban Renewal, LLC (the "Entity") applied for a tax exemption pursuant to 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 project to demolish two (2) existing buildings and construct a new 99,010 square foot, five (5) story mixed use building with three (3) commercial units on the ground floor measuring approximately 4,630 square feet and eighty-four (84) market rate residential units located at 2-16 Spring Street/73-87 Clay Street, Newark, New Jersey and identified on the City's tax map as Block 8, Lot 9.03 (collectively, the "Project"); and
WHEREAS, on July 11, 2018, the Municipal Council adopted Ordinance 6PSF-f granting a fifteen (15) year tax abatement for the Project and authorizing the execution of the "Financial Agreement" (the "Agreement") memorializing the terms and conditions applicable to the tax exemption; and
WHEREAS, SBIP Spring Street, LLC, is the sole managing member of the entity; and
WHEREAS, Sterling Bridge Investments Partners is the sole managing member of SBIP Spring Street, LLC, which is owned by Louis Reynolds and Marc Chase equally (50% each); and
WHEREAS, SBIP Spring Street, LLC is seeking to transfer its membership interest in the Entity to Spring Street Commons OZ Partnership, LLC, which is 99.5% owned by Spring Street Commons OZ Fund, LLC, the tax credit investor, and 0.5% Spring Street Commons Manager, LLC (of which Louis Reynolds and Alex Von Summer shall each...
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