File #: 23-0925    Version: 1 Name: Amendment No. 1 to Financial Agreement 40 Clinton Urban Renewal
Type: Ordinance Status: Adopted
File created: 6/2/2023 In control: Economic and Housing Development
On agenda: 7/10/2024 Final action: 9/17/2024
Title: AN ORDINANCE AMENDING THE TAX ABATEMENT GRANTED TO 40 CLINTON URBAN RENEWAL, LLC, C/O PARAMOUNT ASSETS, LLC, 45 ACADEMY STREET, 5TH FLOOR, NEWARK, NEW JERSEY 07102, PURSUANT TO ORDINANCE 6PSF-M ADOPTED ON MAY 19, 2021, FOR A PROJECT TO REHABILITATE AN EXISTING BUILDING AND CREATE (27) MARKET-RATE RESIDENTIAL RENTAL UNITS LOCATED AT 38-40 CLINTON STREET, NEWARK, NEW JERSEY 07102 AND IDENTIFIED ON THE OFFICIAL TAX MAP OF THE CITY OF NEWARK, AS BLOCK 145, LOT 62.01 (CENTRAL WARD), TO CORRECT THE MINIMUM ANNUAL SERVICE CHARGE IN THE FINANCIAL AGREEMENT. Deferred 6PSF-b 090524
Sponsors: Council of the Whole
Title
AN ORDINANCE AMENDING THE TAX ABATEMENT GRANTED TO 40 CLINTON URBAN RENEWAL, LLC, C/O PARAMOUNT ASSETS, LLC, 45 ACADEMY STREET, 5TH FLOOR, NEWARK, NEW JERSEY 07102, PURSUANT TO ORDINANCE 6PSF-M ADOPTED ON MAY 19, 2021, FOR A PROJECT TO REHABILITATE AN EXISTING BUILDING AND CREATE (27) MARKET-RATE RESIDENTIAL RENTAL UNITS LOCATED AT 38-40 CLINTON STREET, NEWARK, NEW JERSEY 07102 AND IDENTIFIED ON THE OFFICIAL TAX MAP OF THE CITY OF NEWARK, AS BLOCK 145, LOT 62.01 (CENTRAL WARD), TO CORRECT THE MINIMUM ANNUAL SERVICE CHARGE IN THE FINANCIAL AGREEMENT.
Deferred 6PSF-b 090524
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WHEREAS, on May 19, 2021, the Municipal Council adopted Ordinance 6PSF-m, (the "Ordinance"), a copy of which is attached hereto as Exhibit A, granting a twenty-five (25) year tax abatement to 40 Clinton Urban Renewal, LLC, c/o Paramount Assets, LLC, 45 Academy Street, 5th Floor, Newark, New Jersey 07102 (the "Entity") pursuant to the N.J.S.A. 40A:20-1 et seq., Long Term Tax Exemption Law, for a twenty-five (25) year term, for a project to rehabilitate an existing building and create twenty-seven (27) market rate residential rental units located at 38-40 Clinton Street, Newark, New Jersey 07102 and identified on the Official Tax Map of the City of Newark, as Block 145, Lot 62.01 (Central Ward) (collectively, the "Project"); and
WHEREAS, prior to the adoption of the Ordinance, the Entity filed a tax appeal for the 2019 Tax Year that reduced the taxes on the property from $99,589.13 to $51,243.00; and
WHEREAS, pursuant to the Ordinance, on June 18, 2021, the Entity and the City of Newark (the "City") entered into a Financial Agreement, governing the tax abatement for the Project, which reflected a Minimum Annual Service Charge in the amount of $99,589.13 in Article I, Section 1.02 (the "Original Financial Agreement"), a copy of which is attached hereto as Exhibit B and together with this Amendment #1 to Financial Agreement (the "Financial Agreement"); and
WHEREAS, ...

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