...Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Authorization of Tax Settlement Agreement and Refund
Claimant: City of Elizabeth and ELRAC, LLC
Settlement Amount: $1,867,807.80
Funding Source:
Additional Information:
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WHEREAS, the Municipal Council by Ordinance 6PSF-d adopted on July 1, 2025 granted authority to the Corporation Counsel to settle any claim for a sum not to exceed $53,000.00 without the approval of the Municipal Council; and
WHEREAS, the City of Newark, the City of Elizabeth and ELRAC, LLC entered into a Release and Settlement Agreement dated February 28, 2026 (the "Agreement") to resolve disputes regarding Motor Vehicle Rental Tax and Payroll Tax obligations arising from ELRAC's operations at 132 Carson Road and 2052 McCarter Highway; and
WHEREAS, pursuant to the Agreement, the City of Newark agreed to refund to ELRAC, LLC the net amount of One Million Eight Hundred Sixty-Seven Thousand Eight Hundred Seven Dollars and Eighty Cents ($1,867,807.80); and
WHEREAS the Agreement provides that the refund shall be paid in four (4) equal installments of Four Hundred Sixty-Six Thousand Nine Hundred Fifty-One Dollars and Ninety-Five Cents ($466,951.95); and
WHEREAS, the Corporation Counsel, based upon all facts and circumstances surrounding the matter, deems it is in the best interest of the City to resolve this matter by payment in the amount set forth above; and
NOW, THEREFORE, BE IT RESOLVED BY MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Corporation Counsel is hereby authorized on behalf of the City of Newark to execute and accept the terms of the Settlement Agreement and Release, attached hereto.
2. Upon receipt by the Corporation Counsel of all documents deemed necessary, the Director of Finance is hereby authorized and directed to issue payment in the amount of One Million Eight Hundred Sixty-Seven Thousand Eight Hund...
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