Title
Dept/ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: 2019 Annual Budget for Greater Newark Convention & Visitors Bureau (“Bureau”)
Purpose: Introducing and Approving 2019 Annual Budget for Greater Newark Convention and Visitors Bureau
Amount: $2,293,881.00
Budget Period: January 1, 2019 through December 31, 2019
Additional Information:
Ordinance 6PSF-h adopted on June 19, 2013 - Authorized Creation of the Greater Newark Tourism Special Improvement District
The Public Hearing will be held on Thursday, June 6, 2019 at 12:30 P.M.
body
WHEREAS, by Ordinance 6PSF-h, adopted on June 19, 2013, the Mayor and the Municipal Council created and designated within the City of Newark as a Special Improvement District authorized pursuant to N.J.S.A. 40:56-65 et seq. (the “Ordinance”), to be known as the Greater Newark Tourism Improvement District comprised of all hotel properties within the City (the “District”) to provide supplemental services within the District and collect a special license fee assessment on all affected property within the District, which fee assessments shall be collected by the owners or operators of hotel properties within the District as an additional room charge imposed upon such hotel owners and operators based upon actual room rentals and paid to the City of Newark in quarterly installments together with regular real property tax payments for the purpose of promoting the economic and general welfare of the District and the municipality; and
WHEREAS, by Ordinance 6PSF-h June 19, 2013, the Mayor and the Municipal Council designated a non-profit corporation, the Greater Newark Tourism Improvement District Management Corporation (“the District Management Corporation”), as the management entity for the District; as enabled by N.J.S.A. 40:56-65 (c); and
WHEREAS, the District Management Corporation provides administrative and other services to benefit businesses, employees, residents, visitors and consumers in the District and shall have all powers necessary and requisite to effectuate the purposes of the Ordinance and the District; and
WHEREAS, in accordance with N.J.S.A. 40:56-80, the Municipal Council must review and approve a report of estimated costs and proposed assessments and fees to be charged for the operation of the District for the fiscal year; and
WHEREAS, in accordance with Section 7(b) of the Ordinance, the District Management Corporation shall submit a detailed business plan and budget, including a report explaining how the budget contributes to the goals and objectives for the district, for the upcoming year for approval by the Mayor and Municipal Council in accordance with the procedure set forth in N.J.S.A. 40:56-84; and
WHEREAS, the report of cost estimates, assessments and fees to be charged and the annual budget for the District Management Corporation contribute to the goals and objectives for the District; and
WHEREAS, in accordance with Section 7(e) of the Ordinance, the District Management Corporation shall submit an annual report to Municipal Council consisting of a narrative covering the previous year’s operation and detailed financial statement and shall include a report on the hiring commitment established in Section 6 of the Ordinance; and
WHEREAS, the amount anticipated to be raised through the special license fee assessment to support the annual budget of the District Management Corporation for the calendar year 2019 (January 1, 2019 through December 31, 2019), shall be Two Million Two Hundred Ninety-Three Thousand Eight Hundred Eighty-One Dollars and Zero Cents ($2,293,881.00).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The estimated annual budget for the calendar year 2019 (January 1, 2019 through December 31, 2019), in the amount of $2,293,881.00 (Two Million Two Hundred Ninety-Three Thousand Eight Hundred Eighty-One Dollars and Zero Cents), for the Greater Newark Convention & Visitors Bureau (“Bureau”), attached hereto, as approved by the District Management Corporation at its December 12, 2018 meeting of the Board of Directors, is hereby introduced and approved, subject to a public hearing prior to adoption, in accordance with provisions of Ordinance 6PSF-h adopted June 19, 2013, as set forth in N.J.S.A. 40:56-84.
2. The budget is ratified from January 1, 2019, until the date of adoption by the Newark Municipal Council.
3. The Tax Assessor is directed to do the following:
(a) Prepare an assessment roll specifying the amounts specifically assessed against each benefitted and assessable property in the District in proportion to the benefit conferred, based upon the approved budget in accordance with the procedures prescribed in N.J.S.A. 40:56-80(c). Such assessment roll shall include a description of each property and the names of the owners; and
(b) File the assessment roll in the Office of the City Clerk to be available for public inspection.
4. The Acting Director of the Department of Economic and Housing Department is directed to do the following:
(a) Schedule a public hearing on the budget and the amount of the assessments not less than 28 days from the date of this Resolution;
(b) At least 10 days prior to the date of the hearing, publish (i) a notice setting the time and place of the public hearing on the budget and amounts of the special assessments; and (ii) a copy of the entire budget in a newspaper of general circulation in the City of Newark;
(c) At least 10 days before the date of the scheduled hearing:
(i) post a complete copy of the approved budget in City Hall in the customary location for posting public notices;
(ii) post a complete copy of the assessment roll in City Hall in the customary location for posting public notices; and
(iii) make available a copy of the budget to any person requesting it up to and including the date of the public hearing.
5. Upon approval of the assessment roll with any changes approved by the Municipal Council, the City Clerk shall immediately certify a copy of the assessment roll to the County Tax Board to be effective as of January 1, 2019.
6. The amount anticipated to be raised by the special assessments to support the annual budget of the District Management Corporation for the calendar year 2019 (January 1, 2019 through December 31, 2019) is estimated to be $2,293,881.00 (Two Million Two Hundred Ninety-Three Thousand Eight Hundred Eighty-One Dollars and Zero Cents). Said total estimated amount of the special assessments set forth in the estimated and approved budget shall be paid over to the District Management Corporation in installments of 25% of the total estimated assessments quarterly.
7. The Office of the City Clerk shall forward certified copies of this resolution to the Business Administrator, the Director of Finance and the Tax Collector.
8. The Acting Director of the Department of Economic Housing and Development will file an executed copy of this resolution with the Office of the City Clerk.
STATEMENT
This resolution ratifies and authorizes the Municipal Council to approve the annual budget of the Greater Newark Convention & Visitors Bureau in the amount of Two Million Two Hundred Ninety-Three Thousand Eight Hundred Eighty-One Dollars and Zero Cents ($2,293,881.00.00), for the calendar year 2019 (January 1, 2019 through December 31, 2019), in accordance with provisions of Ordinance 6PSF-h, adopted on June 19, 2013, as set forth in N.J.S.A. 40:56-84.