Title
Dept/ Agency: Economic Housing and Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Issuance of an Event of Default for a Financial Agreement with New Grace West Urban Renewal, LLC.
Project Information:
RESOLUTION OF THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY DETERMINING THAT AN EVENT OF DEFAULT HAS OCCURRED, PURSUANT TO THE FINANCIAL AGREEMENT WITH NEW GRACE WEST URBAN RENEWAL, LLC, FOR PROPERTY KNOWN AS 221-305 IRVINE TURNER BOULEVARD AND IDENTIFIED ON THE OFFICIAL TAX MAP OF THE CITY OF NEWARK, AS BLOCK 2583, LOT 1.
Additional Information:
body
WHEREAS, in an effort to encourage and increase development within the City of Newark (the "City"), the City may grant a tax exemption for certain development projects, including housing projects, all in accordance with the Municipal Code of the City of Newark, Title 10, Finance and Taxation, Chapter 24, Procedures for Application, Approval and Administration of Tax Exemption and Abatement; and
WHEREAS, the City considers the granting of a tax exemption and the corresponding reduction in real property taxes to be a significant benefit to a project and its developer; and
WHEREAS, in return for granting such a significant benefit, the City expects and demands that a developer of a housing project receiving a tax exemption will develop a decent, safe, and well-maintained project; and
WHEREAS, in the event that a developer does not meet the City's basic expectations, the City should no longer provide the developer with such a significant benefit; and
WHEREAS, in 2014, the City entered a certain Financial Agreement; a copy of which is attached hereto as Exhibit A, with RGC Grace West Urban Renewal, LLC (the "Original Developer") granting a tax exemption for a project to renovate four hundred twenty- nine (429) affordable housing units on real property commonly known as 221-305 Irvine Turner Boulevard, Newark, New Jersey 07108 and identified on the Official...
Click here for full text