Special Meeting of Newark Municipal Council – June 25, 2024
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Special Meeting of Newark Municipal Council – June 25, 2024
The Newark Municipal Council held a special meeting on June 25, 2024, at 10:00 AM in the Council Chamber. The meeting included public hearings on tax abatements, the introduction of the 2024 annual municipal budget, and several added starters, including a prescription benefits contract and a presentation on booting enforcement. Public comment was extensive, with residents expressing concerns about tax abatements, housing conditions, and city processes.
Public Comments & Testimony
- Lisa Parker opposed the 25-year tax abatement for NMA Owners Urban Renewal LLC, arguing that the city provides tax abatements without requiring project labor agreements, hiring local workers, or engaging residents. She stated that tax abatements shift the tax burden onto residents and criticized the lack of transparency and oversight.
- George Tillman requested a list of developers who have paid noncompliance contributions to the city in lieu of providing affordable housing. He argued that the administration is non-compliant with its own ordinances and called for a halt on tax abatements until compliance is ensured.
- Denise Cologne described her 16-year struggle to redevelop a property at 176 Clinton Avenue, stating that the city declined her payment of $70,000 in back taxes in 2019 and has since sold the property to another party. She requested consideration for redevelopment.
- Felicia Austin Singleton criticized the late introduction of the CVS prescription contract, stating it jeopardized employees' health coverage. She called for a forensic audit and reported the administration to the ethics board.
- Deborah Mapson reported improvements at the Riviera Hotel, including code enforcement, bike racks, and a movie night, and thanked council members for their involvement.
- Vicera Simone Bradley alleged harassment by LM Management at Georgia King Village and requested intervention.
- Darnella Lee raised concerns about mold in her apartment and accused the city of failing to address it despite prior complaints.
- Louis Sharpley criticized the council for approving items late and noted that Westside Park had no water during the heat wave. He urged residents to vote against Democratic candidates.
- Deborah Salt accused the Democratic Party of corruption and called for independent auditors in elections.
- Latoya Jackson thanked the council for support and urged unity.
Discussion Items
- 6PSF-b – Tax Abatement for NMA Owners Urban Renewal LLC: Proposed 25-year tax abatement for a project at 146 University Avenue and other parcels in the Central Ward. The project includes 200 market-rate rental units, 50 affordable housing units, 2,598 sq. ft. of retail, and a 4,216 sq. ft. gallery leased by the Newark Museum of Art. Council members requested a list of developers who have paid penalties for noncompliance with affordable housing requirements. The ordinance was adopted with a roll call vote: Council (yes), Crump (yes), Gonzalez (yes), Kelly (abstain), Quintana (yes), Ramos (yes), Scott-Rountree (yes), Silva (yes), President McIver (yes).
- 7R8-c – 2024 Annual Municipal Budget Introduction: The budget amount is $914,467,501.56 for the period January 1 to December 31, 2024. Business Administrator Eric Pennington explained that the estimated third-quarter tax bills reflect a 3.9% increase in the municipal levy due to a drop in the equalization ratio from 88% to 55%, which resulted in an unanticipated $22 million payment to Essex County. The city is seeking a zero-interest loan from the state. The council will receive budget books within a week. The public hearing will be held after July 23, 2024. The budget was introduced with a roll call vote: all council members present voted yes.
- Added Starter – CVS Prescription Benefits Contract: The city proposed a contract with CVS to administer prescription benefits for active employees and dependents, effective July 1, 2024. The cost is $6,336,556, compared to $10,081,079 from Horizon Blue Cross, saving approximately $3.7 million. HR Director Tiffany Stewart stated that employees can continue using any pharmacy. Council members criticized the late submission (less than a week before the current contract expires) and the lack of written backup. Despite concerns, the council voted to approve to avoid a lapse in coverage. Roll call: Council (yes), Crump (yes), Gonzalez (yes), Kelly (yes), Quintana (yes), Ramos (yes), Scott-Rountree (yes), Silva (yes), President McIver (yes). The administration agreed to provide full backup by 2:00 PM on June 25 and issue a FAQ to employees by the end of the week.
- Added Starter – Booting Company Presentation (RTV Parking Boot Enforcement LLC): The council questioned RTV representatives about licensing and fees. The company charges $250 per car and $850 for tractor-trailers. The licensing department confirmed that RTV's license expired on May 31, 2024, and their application for renewal is still in process. The council directed the administration to enforce the licensing requirement and to provide a list of licensed booting companies. The company was told not to boot until their license is renewed. Councilman Ramos suggested amending the ordinance to include co-registration of property owners and fines for unlawful booting.
- Other Added Starters: Resolutions supporting grant applications for the Morris Canal Bikeway Project and street paving (7R3-a, 7R3-b, 7R3-c) were approved. An ordinance amending the North Downtown District Management Corporation (8C-a) was adopted. The Sixth Amendment to the Newark Downtown Core District Redevelopment Plan (8D-a) was approved for a mixed-use development at 36-42 Columbia Street.
Key Outcomes
- 6PSF-b Adopted: 25-year tax abatement for NMA Owners Urban Renewal LLC approved (8-1-0, with Kelly abstaining).
- 7R8-c Introduced: 2024 budget introduced with a public hearing set after July 23, 2024.
- CVS Contract Approved: Prescription benefits contract with CVS approved for July 1, 2024, with conditions for backup and employee communication.
- Booting Enforcement: RTV instructed to cease booting until license is renewed; administration to provide list of licensed companies and consider ordinance amendments.
- Resolutions and Ordinances: All other agenda items (7R1-a, 7R2-a, 7R2-b, 7R8-a, 7R8-b, 8-a, 8-b, 8-c, 8-d, 7R2-c, 7R3-a, 7R3-b, 7R3-c, 7R8-d) were adopted unanimously.
- Motions: A motion of sorrow and regret for Saeed O'Brien was approved. Councilwoman Scott-Rountree announced a mammogram event on June 26 at Citiplex.
Meeting Transcript
Good morning. Welcome to the special meeting of the Newark Municipal Council on Tuesday, June 25th, 2022. In accordance with New Jersey law, adequate notice of this meeting has been provided to the Star Ledger, the Jersey Journal, and the public at large, establishing the date, time, and location of this meeting. In addition, the agenda for this meeting was disseminated on June 21st, 2024 at the time of preparation and posted on the website of the City of Norway. Roll call, please. Council. Absent. Crump. Present. Gonzalez. Present. Kelly. Kitana. Ray Mos. Here. Scott Roundtree. Present. Silver absent. President MacGyver. Present. Good morning, Council President, Council members. We have a presentation and an agenda. Um, Council President, is your pleasure to go through the agenda first? Yes. Okay. We are on page three of the agenda. Item six ordinances for public hearing, second reading, and final passage. Is an ordinance granting a 25-year tax abatement to NMA owners, urban renewal LLC for a project to construct approximately 200 market rate residential rental units and 50 affordable housing rental units in the central ward. Is there anyone present wishing to be heard on this ordinance? Lisa Parker. Why do you continue to give these developments 25-year tax abatement? You have a prime example of the Halo building over there. They ran out of funding. You didn't get a project labor agreement. There's all non-union workers. There's been four incidents in the Halo building for public safety, three of which flying debris came off of the ceiling, and uh one a circular saw. And the in the Halo building is not living up to their obligation. They ran out of money. You continue, you gave them a 30-year tax abatement. At the same time, you're increasing the taxes on property owners with no justification when you didn't last year give tax credit that you were supposed to when you submitted your budget. We got no relief, and now you're turning around and giving property owners 15% tax increase. The rates may have changed. Uh big abatement or not a tax abatement. At the end of the day, you're putting the taxes on to the residents that live here. These people don't vote here, they don't live here, they don't pay taxes here, nor do they contribute to the border ed or anything else when you give them tax abatements. So how you got a big rat out there, no project labor agreements, and yet every time we come here, you're giving away tax abatements like they're jelly beans and no relief for the property owners that establish communities here. So somebody better get up here and explain today how you continue to justify giving these tax abatements when these developers don't live up to their obligation of even hiring people to give them a living wage and health benefits. How can that be? Nothing in you T T I N, but a bunch of crap from this council. If you gave the kids of Norw and the residents of Norwork just as much concern as you give tax abatements to these developers that don't vote you in, that don't come to your community meetings, that don't even engage the residents.
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