Newark Municipal Council Regular Meeting - June 7, 2023

The Newark Municipal Council held its regular meeting on Wednesday, June 7, 2023, at 12:30 PM in the Council Chamber at City Hall, 920 Broad Street, Newark, New Jersey. The meeting covered ordinances on first reading, public hearings on second reading, numerous resolutions, appointments, and a hearing of citizens. Notably, City Hall and multiple schools and agencies were closed for early dismissal due to hazardous air quality from wildfires burning in Canada, as announced by Council President LaMonica R. McIver. Council members Anibal Ramos Jr. and Michael J. Silva were absent for parts of the meeting.

Consent Calendar

• Approved reports and recommendations from the North Jersey District Water Supply Commission (April 26, 2023 minutes) and the Employee's Retirement System Board meeting minutes (December 1, 2022; March 9, 2023; March 16, 2023; April 27, 2023).
• Approved a series of temporary emergency appropriations (7R1-a through 7R1-f): FY2020 Recycling Tonnage Grant ($264,896.70 from NJDEP), New Jersey Victim of Crime Act (VOCA) Grant ($825,000 from NJ Office of the Attorney General), Summer Youth Employment Program ($1,704,700 from NJ Department of Labor), Lead Inspections Grant ($418,900 from NJ Department of Community Affairs), Truancy Alternative Program ($72,868 from Essex County), and SUNUP Food Service Program ($1,123,362.93 from NJ Department of Agriculture).
• Approved bid contracts (7R1-g through 7R1-k): vehicle maintenance and repair for Group Auto Import and Export LLC (not to exceed $600,000); concrete ready mix, sand, and gravel for Continental Hardware, Inc. (not to exceed $344,000); wiping rags for A&M Industrial (not to exceed $100,000); office supplies with four vendors (not to exceed $789,514); and ammunition for the Police Division from Atlantic Tactical, Inc. (not to exceed $400,000).
• Approved use of state contract for traffic flares from Orion Safety Products (not to exceed $59,750) and an extension of emergency contract #E2023-03 for water purification chemicals (increased by $300,000 for a new total not to exceed $500,000).
• Approved all 18 HIV/AIDS sub-recipient contracts (7R5-a through 7R5-r) funded by Ryan White grants from the U.S. Department of Health and Human Services, totaling approximately $7.5 million combined, including agreements with St. James Social Services, Trinitas Regional Medical Center, Isaiah House, NJ AIDS Services, Broadway House, Meals on Wheels, NJCRI, Iris House, Community Health Law Project, PROCEED, Inc., AIDS Resource Foundation, Hyacinth AIDS Foundation, Central Jersey Legal Services, Newark Beth Israel Medical Center, Smith Center, Newark Community Health Centers, Public Strategies, and Futurebridge Business Solutions.
• Approved acceptance of the Lead Grant Assistance Program funds ($418,900) and an exception to public bidding for NextGen Healthcare electronic medical records software (not to exceed $400,000 per year).
• Approved pre-litigation settlement of a civil claim in the amount of $285,681.82 (7R6-a).
• Approved professional services contract for legal services concerning the Civilian Complaint Review Board (CCRB) — amended from "workers' compensation matters" to "CCRB" on the floor — with Scipio Law, LLC (not to exceed $150,000).
• Approved the Truancy Alternative Program grant acceptance ($72,868), East Ward Career Expo hold harmless agreement (Prudential Arena, June 12, 2023), ceremonial street designation for Alejandro D. Hernandez (June 17, 2023), expressions of profound sorrow for seven deceased individuals, and a recognizing and commending resolution for numerous honorees.
• Approved recycling tonnage grant acceptance ($264,896.70), SUNUP Food Program grant acceptance ($1,123,362.93), and three professional services contracts for the Water and Sewer Utilities Department: flooding investigation near Ivy Hill Park/Woodbine Avenue (HDR Engineering, $253,500), high service pumps and filters at Pequannock Water Treatment Plant (Kleinfelder, $895,000), and Southside Interceptor Condition Assessment (CDM Smith, $297,900).
• Approved bid contract for concrete sidewalk restoration over water/sewer utility excavations (Contract 03-WS2022 Re-Bid) to AA Berms, LLC (not to exceed $639,500).
• Added starter resolution 7R12-eas: professional services contract for architect consultant services for the proposed City of Newark Watershed Security Office (approved unanimously).
• Approved raffle licenses for 11 organizations.

Public Comments & Testimony

• Lisa Parker spoke against the 30-year tax abatement ordinance (6PSF-a), stating the city was supposed to have a moratorium on such abatements. She criticized the lack of project labor agreements, the city's failure to protect long-term residents, and what she called gentrification of Newark out of the city. She also raised concerns about the city's police force being undersized relative to population.
• Frederica Bey agreed with Ms. Parker's comments, comparing the treatment of Newark residents to the carving up of Africa in 1948, and urged the Council to use its power to stop "this foolishness" that she said was taking away generational wealth.
• David Trout, Professor of Law at Rutgers Law School and Director of the Center on Law, Inequality, and Metropolitan Equity, spoke in support of the unconscionable rent increase ordinance (6PSF-c), explaining that institutional buyers are treating Newark as a "ripe market for rent extraction" because renters have no other place to go, and that the market itself will not impose necessary constraints.
• Debra Salters ("Warrior for the People") spoke on multiple items, noting Essex County has the highest number of homeless residents and criticizing the city for not replacing lost affordable housing units. She also commented on the CAP ordinance (6PSF-d), asking for a plain-language explanation and expressing concern about the extent of emergency appropriations.
• Arnold Cohen of the Housing and Community Development Network of New Jersey expressed support for 6PSF-c, noting that landlords are seeing high rents in new buildings like the "Shack Towers" and jacking up rents on existing tenants by $500 or more. He cited his own daughter's 7% rent increase in a subsidized building.
• Shavani Hurry expressed full support for the rent ordinance, noting that 78% of Newark residents are renters and that many cannot afford to buy homes. She said residents in new buildings are not all "rich" and are experiencing "crazy wild rent increases" of more than 5% and even more than 10%.
• Samuel Thomas, a student at Central High School, said the ordinance is a temporary measure and questioned why rent is going up in the first place, urging the city to make it easier for regular people to become landlords rather than large corporations.
• Nicholas Kikis of the New Jersey Apartment Association opposed 6PSF-c, arguing the ordinance is the "wrong solution" to the affordability crisis, that Newark needs more housing investment, and that the ordinance does not comply with state law (preemption of local rent control for new construction). He urged the Council to vote no.
• Ramon Luis Rodriguez delivered public comments in Spanish and English, emphasizing that 40% of Newark residents are Spanish- or Portuguese-speaking, and that they do not feel included because city meetings are not translated in real time and city services are not accessible in their languages. He noted that these residents pay taxes and deserve to be part of the civic process.
• Opal R. Wright addressed the Dodd-Frank Wall Street Reform and Consumer Protection Act, focusing on financial stability and risk committee requirements and investor protection provisions.
• Alif Muhammad spoke about Newark Housing Authority security, noting plans to add 30 special police officers at a rate increase from $29 to $49 per hour, and introduced the new interim executive director, Emmanuel Forster, and new chief of staff, Khalif Thomas.
• Emily Aikens raised concerns about public safety, school bus drivers running red lights and stop signs, non-English-speaking drivers, 911 operator attitudes, and the myhousingsearch.com website being inaccurate. She also asked for a plain-English explanation of AMI (Area Median Income) percentages.
• Gee Cureton spoke about poor conditions at Georgia King Village, alleging residents have died due to mold and deplorable habitation, and that many are facing eviction. She said a court hearing is scheduled for June 12, 2023 at the old courthouse.
• Fahkeria Bradley described being bullied by LM Management at her development, claiming illegal court documents were placed in her door, that her rent was being raised to $411 (which she said is more than 30% of her income), and that she was being threatened with eviction despite never having a write-up.
• Talliaucha Hunter said she is a fourth-generation Newark resident on disability who cannot afford her rent, which went from $900 to $1,400, and asked the Council for help finding affordable housing.
• Colleen Fields described a long-running dispute with police, including an alleged assault by an officer and complaints about the Office of Professional Standards failing to provide promised outcomes.

Discussion Items

• 6F-a and 6F-b (First Reading): 30-year tax abatements for the "HALO" development at 289-301 Washington Street — Two ordinances granting 30-year tax abatements to 289-301 Washington Street Urban Renewal LLC and 289-301 Washington Street Urban Renewal II LLC, respectively. The first tower will consist of 238 market-rate units and 59 affordable units (15 at 40% AMI, 15 at 60% AMI, 29 at 80% AMI) with 95 allocable parking spaces of 375 total. The second tower will consist of 288 market-rate units and 72 affordable units (18 at 40% AMI, 18 at 60% AMI, 36 at 80% AMI) with 109 allocable parking spaces. Both passed on first reading. Councilman Council abstained on both items.
• 6F-c (First Reading): Capital improvement appropriation of $7,383,664 — Passed on first reading. Councilman Council noted he had not received the list of projects and asked for it to be sent to the clerk's office.
• 6PSF-a (Public Hearing, Second Reading): 30-year tax abatement for 81-93 Orange Street Urban Renewal LLC — A new 14-story building with 280 market-rate units, 70 affordable units (17 at 40% AMI, 17 at 60% AMI, 36 at 80% AMI), 8,503 square feet of commercial space, and 178 on-site parking spaces at 24-38 University Avenue (also known as 81-93 Orange Street), Central Ward. Public speakers Lisa Parker and Frederica Bey opposed the abatement. The ordinance passed on second reading.
• 6PSF-b (Public Hearing, Second Reading): Ordinance requiring special police officers during specified business hours — The ordinance amends Title 5, Chapter 5, Section 4-8(a) regarding business hours and creates Chapter 14, mandating that businesses with live bands or DJs after 11 p.m. with 50 or more patrons hire special police officers. Councilman Anibal Ramos Jr. moved an amendment to require that specials be hired through the Police Division's outside employment unit and that, if a special is unavailable, a licensed armed guard be hired as a fallback. The amendment failed on a roll call vote (4 in favor, 5 against). Councilman Crump, Councilman Council, and Councilman Kelly voted against the amendment, with Crump and Kelly citing the fact that armed guards lack arrest powers. The ordinance was then adopted as originally written without the amendment. Councilman Ramos and Councilman Council voted no on the final ordinance.
• 6PSF-c (Public Hearing, Second Reading): Unconscionable rent increase ordinance — The ordinance adds Section 10 to Title II, Chapter 10 of the Revised General Ordinances, defining unconscionable rent increases as increases greater than 5% per year, with a penalty of up to $1,500 per violation. Director Alison Ladd of Economic and Housing Development stated that 75% of Newark residents rent, median income is approximately $34,000-$35,000, and rent control covers about 70% of existing units. She noted examples of rent increases of $445, $500, $750, and $945. Multiple public speakers supported the ordinance. Nicholas Kikis of the NJ Apartment Association opposed it, arguing it violates state law preemption and would be counterproductive. Councilman Gonzalez opposed, stating the ordinance is contrary to state law which exempts new construction from rent control. Councilman Ramos opposed, arguing that the existing rent control ordinance covering 70% of renters is not being enforced, and that the new ordinance would benefit tenants who can afford high rents while not protecting existing renters from abusive LLCs. The ordinance passed on second reading with dissenting votes from Gonzalez, Quintana, and Ramos.
• 6PSF-d (Public Hearing, Second Reading): CAP ordinance to exceed municipal budget appropriation limits — The ordinance establishes a "cap bank" pursuant to N.J.S.A. 40A:4-45.14, allowing the city to exceed municipal budget appropriation limits. Councilman Gonzalez explained that the cap allows the city to bank future expenditures to use when revenue is insufficient. The ordinance passed unanimously.
• 8-k and 8-l: Water and sewer rate adjustment ordinances — 8-k (water rates) was amended on the floor to remove the reference to March 4, 1998, and then advanced and adopted on first reading as 6F-d. 8-l (sewer rates) was advanced and adopted on first reading as 6F-e. Councilman Ramos abstained on both, citing his request for a detailed vendor-by-vendor report on the lead service line replacement initiative. The Water and Sewer Utilities Director noted this would be only the third water rate increase in over 30 years, and that Newark's rates would still be lower than comparable municipalities in five years.
• 9-a: Tree removal permit ordinance — An ordinance amending Title XXVII, Parks, Trees and Plants, Chapter 1, Section 5, requiring a written permit from the Department of Public Works and a fee for removing trees on private property. Sponsored by Councilman Quintana and seconded by Councilman Ramos. Passed.
• 9-b: Taxicab fare rate adjustment ordinance — An ordinance amending Title XXXIV, Transportation, Chapter 34, Taxicabs, Article 8, Fares, Meters and Rates, Section 25. Councilman Council noted the rates had not been adjusted since 2007 and sponsored the ordinance. Passed.
• 7R2-a, 7R2-b, 7R2-c: Deferred private sale/redevelopment items — Three private sales were deferred: (a) sale of 614 Dr. Martin Luther King Blvd for $41,760 to Yes Newark 616, LLC for a five-story multifamily building; (b) sale of four parcels on Clinton Avenue for $96,706 to 254 Clinton Avenue Group, LLC for 40 residential units with workforce housing; (c) sale of three properties for $34,618.80 to Three Properties, LLC for affordable housing. Councilman Gonzalez also requested that future items include the number of parking spaces in the header.
• 7R2-d: Private sale/redevelopment — Approved the sale of 769 Summer Avenue for $39,400 to Christine Veliz for rehabilitation and rental of the property.
• 7R2-e: First Amendment to Redevelopment Agreement with 38-60 Blanchard, LLC — Approved, amending the project scope for the property at 38-60 Blanchard Street, East Ward.
• 7R3-a: Bus stop designation — Approved designating a bus stop on 18th Avenue at Carolina Avenue and deleting a stop at West End Avenue, West Ward.
• 8-a through 8-h: Appointments — 8-a (Pedro Nieves to Central Planning Board) was returned to the administration. 8-b (Bernard Chase to Parking Authority) was approved with Councilman Council abstaining. 8-c through 8-h (Affirmative Action Review Council and Federally Qualified Health Center Board appointments/re-appointments) were approved.
• 8-i: Special emergency appropriation of $4,000,000 for a complete program of revaluation of real property for the use of the local assessor — Approved.
• 8-j: Ordinance authorizing the Mayor or designee to execute First Amendment to the sale and transfer of property at 38-60 Blanchard Street — Approved on first reading.
• 9-c: Appointment to the Caribbean Commission (Cheryl DB Murphy) — Deferred.
• 9-d: Appointment to the Board of Alcoholic Beverage Control (Elizabeth Da Silva) — Returned to the administration.

Key Outcomes

• 6PSF-a passed on second reading: 30-year tax abatement for the 81-93 Orange Street / 24-38 University Avenue 14-story residential tower with 350 total units (280 market-rate, 70 affordable) and 8,503 sq ft of commercial space.
• 6PSF-b passed on second reading without the Ramos amendment (amendment failed 4-5): the ordinance requiring special police officers during specified business hours (after 11 p.m. with live bands or DJs and 50+ patrons) was adopted as originally drafted.
• 6PSF-c passed on second reading with dissenting votes: the unconscionable rent increase ordinance (capping increases at 5% per year) was adopted, with the Corporation Counsel confirming that the existing rent moratorium would be terminated by executive order if the ordinance passed.
• 6PSF-d passed unanimously: the CAP ordinance establishing a cap bank was adopted.
• 6F-a, 6F-b, and 6F-c passed on first reading: two 30-year tax abatements for the "HALO" development (towers with 238 and 288 market-rate units, respectively, each with affordable housing components) and the $7,383,664 capital improvement appropriation.
• 8-k and 8-l advanced and adopted on first reading (as 6F-d and 6F-e): water and sewer rate adjustment ordinances, with Ramos abstaining on both pending the lead service line vendor report.
• 7R2-a, 7R2-b, and 7R2-c were deferred to a future meeting.
• 8-a was returned to the administration (Central Planning Board appointment), and 9-d was returned to the administration (ABC Board appointment).
• 9-c was deferred (Caribbean Commission appointment).
• City Hall closed early due to hazardous air quality from Canadian wildfires; the Council continued its business despite the announcement.
• Budget hearings were announced to be scheduled for the last week of June 2023, with more information to be released.
• Council President McIver directed that comments from Emily Aikens regarding police and housing search be sent to Deputy Mayor Ladd and the Police Director, and that Talliaucha Hunter's comments regarding affordable housing be sent to the Office of Affordability for follow-up.