Newark Municipal Council Special Meeting – June 27, 2023

The Newark Municipal Council held a special meeting on June 27, 2023, at 10:00 AM in the Council Chamber. The meeting included public hearings on water and sewer rate adjustments, the introduction of the 2023 municipal budget, adoption of the Newark Downtown District budget, several property sales and redevelopment agreements, appointments, ceremonial street designations, and added starter ordinances on rent control and window guard requirements. Public comment featured three speakers, and the council later adjourned after a moment of sorrow for Natasha Allen.

Ordinances – Public Hearing and Final Passage

• 6PSF-a (23-0778): Ordinance adjusting the water rates general schedule. No public speakers; passed unanimously (9-0).
• 6PSF-b (23-0874): Ordinance adjusting the sewer user charge rate schedule. No public speakers; passed unanimously. Councilman Ramos requested a detailed analysis of the lead service line replacement program, marking the third request for that information.

Resolutions

• 7R1-a (23-0537): Exception to public bidding for municipal engineer services with sub‑consultant (KS Engineers, T&M Associates) – $100,000. Councilman Gonzalez questioned the need for outside supervision when a department director is in place. Corporation Counsel Kenya Stewart noted the director is well‑qualified but offered to discuss personnel matters in executive session. Passed 8-0-1 (Gonzalez abstained).
• 7R2-a (23-1190): Private sale of five city‑owned properties to Sting 1, LLC (Austin, Texas) for $81,057.60 ($6/sq ft) to develop one three‑family and four two‑family homes. Councilman Council moved to abstract three South Ward properties (Bergen Street) from the item; motion passed. Councilman Gonzalez opposed the sale, stating the city should not transfer wealth to an out‑of‑state company. Councilman Kelly countered that the owners are from Newark/East Orange, though official paperwork showed Texas and Pennsylvania addresses. The item, as amended to include only West Ward properties, passed 7-1-2 (Gonzalez no; Quintana and Ramos abstained).
• 7R2-b (23-0809): Subordination of reverter rights for Metamorphosis Development Enterprise, LLC to finance six three‑unit townhomes in the Central Ward. Deferred by motion (unanimous).
• 7R2-c (23-0216): Affordable Housing Agreement with Urban League of Essex County Opportunity Corporation for $750,000 in HOME funds to construct eight two‑family owner‑occupied buildings (16 units, 8 affordable) in the West Ward. Passed unanimously.
• 7R2-d (23-0987): Adoption of the 2023 Annual Budget for the Newark Downtown District ($8,335,000). A public hearing was held; no comments. Passed unanimously.
• 7R4-a (23-0953): Authorization to issue estimated tax bills for the third quarter of 2023 (estimated levy $476,043,973.19; rate $3.744). Passed unanimously.
• 7R8-a (23-1019): Introduction of the 2023 Annual Municipal Budget ($823,914,910.73). Public hearing to be held after July 25, 2023. Passed unanimously. Council President McIver noted that budget hearings were ongoing (first session June 26, second session June 28).
• 7R8-b (23-0922): Appointment of Council Member Patrick O. Council to the Bergen Lyons Clinton Partnership, term ending June 30, 2026. Passed unanimously.
• 7R8-c (23-0967): Resolution of Support for Tourette Syndrome Awareness Day (June 4, 2023). Passed unanimously.
• 7R8-d (23-0861): Hold Harmless and Indemnification Agreement for Kaboobie Summer Basketball League (Newark Public Schools, July 10–August 14, 2023). Passed unanimously.
• 7R8-e (23-0994): Waiver of special event application fees for Halsey Street Festival and Brownmill Anniversary Block Party (July 22, 2023). Passed unanimously.
• 7R8-f (23-0972): Waiver of special event application fees for Ferdinand Street Block Party (July 8, 2023). Passed unanimously.
• 7R8-g (23-0962): Ceremonial street designation “Jerry Gottesman Way” at Edison Place and Columbia Street (July 10, 2023). Passed unanimously.
• 7R8-h (23-0999): Ceremonial street designation “James ‘Kaboobie’ Sedgwick Way” at Peshine and Watson Avenues (August 4, 2023). Passed unanimously.
• 7R8-i (23-1010): Ceremonial street designation “Reverend Froilan Guzmán Way” at Ferry and Richard Streets (September 20, 2023). Passed unanimously.
• 7R12-a (23-0879): Professional services contract with GTS Consultants, Inc. for field survey investigation of sanitary manholes on the South Side Interceptor (84‑inch line) – $113,700. Passed unanimously.
• 7R12-b (23-0880): Professional services contract with Mott MacDonald, LLC for pump station assessments – $352,900. Passed unanimously.
• 7R12-c (23-0573): Contract change order #1 for soil removal and disposal services at 63 Newark Street – increase of $218,030.50 (total $1,342,930.50) with no extension of the 730‑day completion period. Councilman Council asked about the abatement; director confirmed soil removal was complete. Passed unanimously.
• 7R12-d (23-0977): Intergovernmental agreement with NJDOT for a temporary construction easement for State Route 23 Northbound Bridge over Pequannock River – $1,700 (no municipal funds). Passed unanimously.

Communications and Appointments

• 8-a (23-1029): Appointment of Pedro Nieves to the Board of Alcoholic Beverage Control (term ending June 27, 2026). Passed unanimously.
• 8-b (23-1030): Appointment of Elizabeth DaSilva to the Central Planning Board as a Class IV member (completing term ending March 18, 2024). DaSilva introduced herself; several council members praised her experience. Passed unanimously.
• 8-c (23-1024): Re‑appointment of Frank D’Allessio as Tax Assessor (term July 1, 2023 – June 30, 2027). Passed unanimously.
• 8-d (23-1857): Ordinance granting a 30‑year tax abatement to 289‑301 Washington Street Urban Renewal III, LLC for a residential tower with 234 market‑rate and 58 affordable rental units (15 at 40% AMI, 14 at 60% AMI, 29 at 80% AMI) at 295‑297 Washington Street (Central Ward), plus 171 parking spaces. Passed 8-0-1 (Crump abstained).
• 8-e (23-0763): Ordinance amending Title XXIX (Streets and Sidewalks) to repeal and replace Chapter 29 on permits for shared dockless vehicles. Passed unanimously.
• 8-f (23-0882): Ordinance amending Title XLI (Zoning) Chapter 21 (Inclusionary Zoning for Affordable Housing) to add an administrative agent, require 50% of IZO units for Newark residents, and implement a random selection process (lottery). Director Allison Ladd explained the ordinance and noted that two listening sessions were held with the development community. Council members expressed support. Passed unanimously.

Added Starters (Emergency & Rent Control Ordinances)

• 23-0993: Resolution authorizing a temporary emergency appropriation of $61,300,668 for July 2023 operating funds until budget adoption. Passed unanimously.
• 23-1049: Ordinance amending Title II, Chapter 10 (Unconscionable Rent Increase) – changing the prior 5% cap to a judicial finding of unconscionability, with penalties (3‑year rent freeze, $2,000 fine), and definitions of displacement by fact and by force. Corporation Counsel stated the ordinance now exempts properties that are exempt by state law (e.g., new construction for 30 years or mortgage amortization). Councilman Ramos noted the revision addresses prior concerns about legality. Passed unanimously.
• 23-1048: Ordinance amending Title XIX (Rent Control) – updating definitions of exemptions and adding applicability to one‑family homes rented out and multi‑family units where owner lives on site. Passed unanimously.
• 23-0827: Ordinance amending Chapter 18 (Housing Code) – requiring landlords to advise tenants on window guard usage for windows above six feet where children age 10 or younger reside. Passed unanimously.

Public Comments & Testimony

• Colleen Fields: Expressed frustration with the council’s treatment of speakers, specifically criticizing Council President McIver’s demeanor. She also praised a local church’s camp and wished Minister Louis Farrakhan a happy birthday. Council President McIver responded that she was disappointed but defended the council’s adherence to public meeting laws.
• Talisa Hunter: Thanked the council, especially Councilwoman Scott‑Rountree, for assistance she received. She urged better communication of city resources and programs, noting that many residents cannot attend meetings. Council President McIver acknowledged the need for improved outreach but highlighted existing channels (phone, email, social media) and encouraged residents to contact council members directly.
• Monera Bumani: Housing advocate who urged enforcement of existing rent control laws, criticized the administration for not holding slumlords accountable, and called for a moratorium on tax abatements and a data‑driven plan to build 16,000 housing units for lifelong residents. She also noted that 10,000 city‑owned properties were sold to outside LLCs.

Key Outcomes

• The 2023 municipal budget was introduced; public hearings will begin after July 25.
• The 2023 Newark Downtown District budget was adopted.
• Water and sewer rate adjustments were approved.
• Five city‑owned properties were sold to Sting 1, LLC (West Ward properties only; South Ward properties were removed by amendment).
• Two rent control ordinances were introduced as added starters and passed, revising the unconscionable rent increase definition and expanding rent control applicability while exempting state‑exempt properties.
• A temporary emergency appropriation of $61.3 million was approved for July operations.
• A window guard safety ordinance was passed.
• The council observed a moment of sorrow for Natasha Allen, community activist and co‑founder of the Newark Anti‑Violence Coalition, and voted to adjourn.