Title
ORDINANCE OF THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK AUTHORIZING AN AMENDMENT TO THE FINANCIAL AGREEMENT BY AND BETWEEN THE CITY OF NEWARK AND SPRUCE SPIRES URBAN RENEWAL, L.P.
Sponsors: Chaneyfield Jenkins/ Gonzalez
Deferred to Special 6PSF-f 110515
body
WHEREAS, on February 4, 2015, the City of Newark Municipal Council (the "City"), adopted Ordinance 6PSF-M, authorizing the Mayor to execute, on the City's behalf, a Financial Agreement (the "Agreement") with Spruce Spires Urban Renewal, L.P., c/o Omni America, LLC, 885 Second Avenue, 31st Floor, Suite C, New York, New York 10017, (the "Entity") for a Thirty Year Tax Abatement in connection with the substantial rehabilitation of 112 affordable housing units (the "Project") located on property identified as Block 2559 Lots 31, 35, 41, 42 & 44, and more commonly known as 90-100 Spruce Street, 717-719 and 725-727 Martin Luther King Boulevard, Newark, New Jersey 07107 (the "Property"); and
WHEREAS, the Agreement was approved pursuant to, and in accordance with, the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. (the "LTTE Law"); and
WHEREAS, the Agreement provides that the Annual Service Charge paid by the Entity for the Project shall be the amount equivalent to 6.28% of Annual Gross Revenue for the rental units and 15% of all other income derived from the Project (the "PILOT"); and
WHEREAS, the Agreement further provides that in no event shall the Annual Service Charge paid be less that an amount equal to the total taxes levied against the Project in the last full tax year the Project is subject to taxation (the "Minimum ASC"); and
WHEREAS, due to unforeseen significant increases to Project expenses, the Project is now financially infeasible with the minimum calculation of the annual service charge as currently set forth in the Agreement; and
WHEREAS, the Redevelopment Area Bond Financing Law, N.J.S.A. 40A:12A-64 e...
Click here for full text