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File #: 18-1513    Version: 1 Name: 100 Polk Street Tax Abatement Application
Type: Ordinance Status: Adopted
File created: 9/21/2018 In control: Economic and Housing Development
On agenda: 12/5/2018 Final action: 12/19/2018
Title: AN ORDINANCE GRANTING A TWENTY-FIVE (25) YEAR TAX ABATEMENT TO 100 POLK STREET URBAN RENEWAL, LLC, C/O GROVE PROPERTY HOLDINGS, LLC, 124 POLK STREET, BOX S-2, NEWARK, NEW JERSEY 07105, FOR A PROJECT TO DEMOLISH A VACANT INDUSTRIAL GARAGE AND CONSTRUCT A NEW BUILDING WITH FORTY-TWO (42) MARKET RATE RESIDENTIAL RENTAL UNITS AND ASSOICIATED PARKING LOCATED AT 94-106 POLK STREET, NEWARK, NEW JERSEY AND IDENTIFIED ON THE CITY'S TAX MAP AS BLOCK 1993, LOT 42, EAST WARD.
Sponsors: Augusto Amador, Carlos M. Gonzalez
Attachments: 1. 18-1513 certified ordinance.pdf

Title

AN ORDINANCE GRANTING A TWENTY-FIVE (25) YEAR TAX ABATEMENT TO 100 POLK STREET URBAN RENEWAL, LLC, C/O GROVE PROPERTY HOLDINGS, LLC, 124 POLK STREET, BOX S-2, NEWARK, NEW JERSEY 07105, FOR A PROJECT TO DEMOLISH A VACANT INDUSTRIAL GARAGE AND CONSTRUCT A NEW BUILDING WITH FORTY-TWO (42) MARKET RATE RESIDENTIAL RENTAL UNITS AND ASSOICIATED PARKING LOCATED AT 94-106 POLK STREET, NEWARK, NEW JERSEY AND IDENTIFIED ON THE CITY’S TAX MAP AS BLOCK 1993, LOT 42, EAST WARD.

 

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WHEREAS, 100 Polk Street Urban Renewal, LLC, c/o Grove Property Holdings, LLC, 124 Polk Street, Box S-2, Newark, New Jersey 07105, filed an application with the Mayor seeking a Long Term Tax Abatement under the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., for a twenty-five (25) year term for a project to demolish a vacant industrial garage and construct a new building with forty-two (42) market rate residential rental units and associated parking located at 94-106 Polk Street, Newark, New Jersey and identified on the tax map of the City of Newark (the “City”) as Block 1993, Lot 42 (the “Project”); and

 

                     WHEREAS, the Mayor has submitted the application and proposed Financial Agreement to the Municipal Council with his recommendation thereof, a copy of which is annexed hereto; and

 

                     WHEREAS, in accordance with Ordinance 6PSF-a adopted May 4, 2011, 100 Polk Street Urban Renewal Company, LLC has filed with the City a sworn statement that it has not made any contribution in violation of said ordinance; and

 

                     WHEREAS, the Department of Economic and Housing Development has determined pursuant to N.J.S.A. 40A:20-11 that the relative benefits of this Project outweigh any costs associated with this tax exemption and that without the tax abatement granted herein, the Project would not be undertaken.

 

 

NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:

 

1.                     The application of 100 Polk Street Urban Renewal, LLC, c/o Grove Property Holdings, LLC, 124 Polk Street, Box S-2, Newark, New Jersey 07105 (the “Entity”), for the development, maintenance and operation of the Project described in the application is hereby approved in accordance with the recommendation of the Mayor for a project to demolish a vacant industrial garage and construct a new building with forty-two (42) market rate residential rental units and associated parking located at 94-106 Polk Street,  Newark, New Jersey and identified on the City’s tax map as Block 1993, Lot 42 (the “Project”).

 

                     2.                     The abatement from taxation on improvements is hereby granted to the Entity for a period of twenty-five (25) years pursuant to N.J.S.A. 40A:20-12, and only so long as the Entity is subject to, and complies with, the proposed Financial Agreement and the Long Term Tax Exemption Law, as amended and supplemented.

 

                     3.                     The Mayor of the City of Newark is hereby authorized and directed to execute and enter into, on the City’s behalf, the Financial Agreement in the form attached hereto. 

 

                     4.                     The Director of the Department of Economic and Housing Development shall file an executed copy of the Financial Agreement authorized by this ordinance in the Office of City Clerk.

 

                     5.                     The Project, when completed, will conform with all State laws and ordinances of the City relating to its construction and use.

 

                     6.                     The Affirmative Action Program now on file in the Office of the City Clerk is declared to be a material condition of the Financial Agreement authorized by this ordinance.

 

                     7.                     The Entity shall, in the operation of the Project, comply with all laws so that no person shall be subject to any discrimination because of race, religious principles, color, national origin, or ancestry.

 

                     8.                     The Entity shall file an employment report (herein described below) with the Office of Affirmative Action who shall forthwith after receiving the report send a copy thereof to the City Clerk and the Office of Affirmative Action shall forthwith investigate the matters contained therein and report its findings to the Municipal Council.

 

                     9.                     The annual service charge shall be based on ten to fourteen percent (10% - 14%) of Annual Gross Revenues generated from the Project as further set forth in the Financial Agreement.   

 

                     10.                     The Entity shall pay the minimum annual service charge, as calculated pursuant to N.J.S.A. 40A:20-12(b)(2)(e) and the Financial Agreement, in each year in which the annual service charge, as provided in paragraph 9 above, would be less than the minimum annual service charge. 

 

                     11.                     The following occurrences and requirements are express conditions of the granting of this tax abatement, to be performed by the Entity and the failure to comply with these requirements will result in the cancellation of the tax abatement:

 

                                          (a)                     The Entity shall not, without prior consent of the Municipal Council of the City of Newark, sell, lease, assign, encumber, subordinate, convey, mortgage or transfer all, or any part of the Project, so as to sever, disconnect or divide the improvements from the land embraced within the Project;

 

                                          (b)                      The Entity shall concomitantly, with the submission of the annual report required of it by N.J.S.A. 40A:20-9(d), attach an employment report under oath, with particulars, stating the manner and the extent to which it has complied with.   This employment report shall be filed with the Director of Finance, the City Clerk, and the Director of the Department of Economic and Housing Development;

                     

                                          (c)                     The Entity shall pay all outstanding taxes and all outstanding water and sewer charges within thirty (30) days of the adoption of this ordinance;

 

                                          (d)                     The Entity shall submit to the City a copy of its formation documents, as approved by the Department of Community Affairs and filed with the Secretary of State;

 

                                          (e)                     The Entity shall receive a favorable review and certification from the appropriate City departments and agencies, pursuant to City Ordinance 6S&Fd, adopted October 21, 1992, as amended.                     

                                          

                     12.                     In any year that the Entity shall fail to make four (4) consecutive land tax payments when due and owing in the manner defined in N.J.S.A. 40A:20-12(b)(2)(e), such delinquency shall render the Entity ineligible for any land tax credits against the annual service charge.

                     

                     13.                     The Entity understands and agrees that the revenue projections set forth in the application are estimates and that the actual payments in lieu of taxes to be paid by the Entity to the City shall be determined pursuant to the Financial Agreement to be executed between the Entity and the City of Newark.

 

14.                     To the extent of any inconsistency with any prior City ordinance and/or Municipal Code provision governing the granting of long-term tax exemptions, including, inter alia, procedures for application, review and approval, required terms of the Financial Agreement, required conditions and covenants, limits on duration, means of enforcement, and all other matters whatsoever, such prior City ordinances and/or Municipal Code provisions are hereby waived, but only with respect to this Ordinance.

 

                     15.                     Within ten (10) calendar days following the later of the effective date of this Ordinance or the execution of the Financial Agreement by the Entity, the Office of the City Clerk shall transmit a certified copy of the Ordinance and Financial Agreement to the Chief Financial Officer of the County and to the County Counsel for informational purposes.

 

                     16.                     This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.

 

 

STATEMENT

 

This Ordinance grants a Long Term Tax Abatement to 100 Polk Street Urban Renewal, LLC, c/o Grove Property Holdings, LLC, 124 Polk Street, Box S-2, Newark, New Jersey 07105, for a twenty-five (25) year term for a project to demolish a vacant industrial garage and construct a new building with forty-two (42) market rate residential rental units and associated parking located at 94-106 Polk Street, Newark, New Jersey and identified on the tax map of the City of Newark as Block 1993, Lot 42.(East Ward)