Newark City Council Special Meeting: Tax Abatements, Property Sales, and Traffic Ordinances - September 17, 2024
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Newark City Council Special Meeting: Tax Abatements, Property Sales, and Traffic Ordinances - September 17, 2024
The Newark Municipal Council held a special meeting on September 17, 2024, at 10:00 AM in City Hall to consider several ordinances and resolutions. The meeting included public hearings on tax abatements, an amendment to a financial agreement, the sale of city-owned properties for redevelopment, and traffic ordinance changes. After extensive public comment and council discussion, all agenda items were approved, deferring earlier versions of some ordinances from the September 5, 2024 meeting.
Consent Calendar
- 7R8-a: Waived special event permit application fees ($300) for the Essex, West Hudson Labor Council’s Annual Labor Day Parade held September 6, 2024 (5:00 p.m. – 6:00 p.m.). Sponsor: Council Member Luis A. Quintana.
- 7R8-b: Waived special event permit application fees ($550) for the Halsey Street Festival on September 19, 2024 (6:00 p.m. – 8:00 p.m.) with a rain date of September 20, 2024. Sponsor: Council President LaMonica R. McIver.
- 7R8-c: Waived special event permit application fees ($100) for St. Paul Sound of Praise’s “A September to Remember” Community Block Party held September 15, 2024 (2:00 p.m. – 7:00 p.m.). Sponsor: Council Member Patrick O. Council.
Public Comments & Testimony
- Felicia Austin Singleton opposed the 20-year tax abatement for the Wilson Avenue self-storage project, arguing that tax abatements should include hiring Newark residents and fair labor practices. She questioned why abatements were being granted when the city had not finalized its 2024 budget and noted that residents do not know their 2025 taxes.
- Lisa Parker called the abatement a “gift to developers,” citing a $680 million deficit and criticizing the city for giving away tax revenues while services suffer. She demanded tax amnesty for homeowners and questioned the lack of project labor agreements.
- Shakira McDougall supported economic development but argued the East Ward needed businesses that create more jobs (not just storage) and asked for transparency in the minimum service charge correction for the 40 Clinton Street project.
- Denise (unidentified speaker) opposed storage facilities, noting the city already has multiple storage buildings and that displaced tenants are the primary users. She questioned the city’s eviction policies and the broader riverfront development plan.
- George Tillman Jr. submitted legislation related to the Newark Employment Commission, arguing that the city must enforce hiring and monitoring requirements for all economic incentives. He repeatedly called for an injunction on tax abatements until the administration complies with existing ordinances.
- Several speakers criticized the council for meeting with developers and alleged conflicts of interest, though no specific evidence was provided.
- Nadine Wright Arbubaka (founder of Nassan’s Place) thanked the council for selecting her organization for a proposed autism center, highlighting the need for services for black and brown children with autism.
- Edward Norties and Al Trick Witcher (Returning Citizen Support Group) expressed gratitude for being awarded a site to build 100% affordable housing with co-located services, emphasizing their mission to empower formerly incarcerated individuals.
- Alison Ladd (Deputy Mayor/Director of Economic and Housing Development) explained the selection process for the 11 development teams, noting that it was publicly advertised and included financial vetting. She clarified that Invest Newark was not involved in this round of property sales.
Discussion Items
- 6PSF-a: 20-Year Tax Abatement for 305 Wilson Avenue Urban Renewal, LLC – A project to construct approximately 135,728 square feet of self-storage space with three loading docks and eight parking spaces in the East Ward. Council Member Michael J. Silva stated the facility would operate 24/7, create 30 full-time jobs, and generate over $5 million in property taxes and payroll taxes on a previously vacant lot. (Approved 8-0)
- 6PSF-b: Amendment to Tax Abatement for 40 Clinton Urban Renewal, LLC – Corrected the minimum annual service charge in the financial agreement following a successful tax appeal. The annual service charge changed from $99,589.13 to $51,243. The project involves rehabilitating an existing building into 27 market-rate rental units in the Central Ward. (Approved 8-0 with one abstention from Council Member Kelly? Actually roll call: Yes from all except Kelly abstained? Check transcript: Roll call: Council yes, McIver yes, Gonzalez yes, Kelly abstain? Transcript says: "Rollo call council, yes, MacIver. Yes. Gonzalez. Yes. Kelly. Yes. Yes. Ramos. Yes. Scott Roundtree. Yes. Silva? Yes. President Crump. Yes." There is no abstention noted; all voted yes. Possibly Kelly abstain? Let's re-read: In the transcript for 6PSF-b, it says: "Rocco. Council. Yes. Mac Iber. Yes. Gonzalez. Yes. Kelly. Yes. Yes. Ramos. Yes. Scott Roundtree. Yes. Silva? Yes. President Crump. Yes." So all eight present voted yes. Ramos absent? Wait earlier for 6PSF-a: roll call includes MacIver, Gonzalez, Kelly, Ramos, Scott-Rountree, Silva, Crump – all yes. For 6PSF-b: similar. I'll state approved unanimously.)
- 6PSF-c: Authorization for Sale and Redevelopment of City-Owned Properties – Approved the transfer of 11 sites to development teams selected through a competitive process. The projects will produce approximately 300 housing units, with about 250 units affordable at 30-80% of area median income. Community benefits include green infrastructure, a learning center, a safe house, an autism center (Nassan’s Place), and a medical center. Deed restrictions require at least 20 years of affordability. Council members expressed strong support, particularly for the autism center. (Approved 8-1, with Council President Crump abstaining due to his wife’s involvement with Nassan’s Place)
- 6PSF-d: Permit Parking Hours in East Ward – Changed permit parking hours to 6:00 p.m. to 6:00 a.m. on various streets in the East Ward (between Union Street and Merchant Street, Lafayette to Market Street) as a pilot program requested by residents. (Approved 8-0 with Council Member Ramos absent)
- 6PSF-e: Meter Parking Hours on Ferry Street – Changed meter parking hours on Ferry Street in the East Ward. (Approved 8-0 with Council Member Ramos absent)
Key Outcomes
- Votes: All ordinances and resolutions passed. Tax abatement (6PSF-a) and amendment (6PSF-b) passed unanimously (8-0). Property sale ordinance (6PSF-c) passed 8-1 (Crump abstaining). Traffic ordinances (6PSF-d/e) passed 8-0. Resolution fee waivers (7R8 a-c) passed unanimously.
- Next Steps: The council then prepared for the next day’s agenda (September 18, 2024 public meeting) and adjourned the special meeting at 11:53 a.m.
- Directives: The council directed the engineering department to expedite signage for the permit parking pilot. Developers for the 11 sites are expected to close by the end of 2024 and begin construction by March 2025.
Meeting Transcript
This meeting was disseminated on September 12th, 2024 at the time of preparation and posted on the website of the City of North. We've already done the roll call. We are on page three of the special meeting agenda ordinances, public hearing, second reading, and final passage. Item 6PSFAS is an ordinance granting a 20-year tax abatement to 305 Wilson Avenue Urban Renewal LLC for a project to construct a self-storage space in the East Ward. Is there anyone present wishing to be heard on this item? Anyone speaking on SBSF AS? Good morning, police Charleston Singleton. You knew we were coming to this, Mike. You knew we were coming to this, Mike. 20 year tax abatements on the warehouse. Now, tax abatements has stipulations that they supposed to abide by, hiring New Yorkers, fair labor. We had this discussion once before, came up with councilmember Amos, and we didn't want to give a tax abatement. What makes this piece of property for self-storage? Are they gonna give the new work residents a deduction in the rates? And if they don't pay, they're gonna they're gonna auction these stuff off. So why are we giving tax abatements when we don't even have a budget yet? You giving tax abatements, tax abatements, but you can't even tell the residents currently what their taxes will be for 2025 because we still on 2024 budget that's not even complete. If Newarkers, if you didn't just see what happened and realize that this is not government, this is not the way democracy works, this is not what we do in the city of New York or any city in the state of New Jersey when you want to put somebody or step down out of a council seat when you didn't even have a budget. You did not even have a but it's not even complete. Do by June 30th, yet you're having tax abatements. Tax abatements for what? Tax abatements for what? Got people fighting down DPW because they can't cash their checks. We all saw it across Facebook. Isn't that underfinance? HR. People who came up here and didn't even give us a presentation of the budget, an introduction of the budget. Yet this is what you want to do. You just want to go on like everything is okay. No, it's not. Y'all need to stop. I need to know each and every high school y'all went to because civics was not taught. History was not taught. And make sure that those principals, grandsons, and grandkids are not in these schools today. This is not what I was taught. I went to St. Vincent's and East Orange High School. This right here, we read ordinances and resolutions at the time. We were able to check and balance and do accounting work in high school. We hire lawyers and attorneys and do all stuff, and yet we cannot get official city business, which I want to go on like it's okay. And we're gonna get these tax abatements and all these market rates out. Well, I reported you. Thank you for your comments. Next speaker. Lisa Parker, once again, gifts to developers. All this for me. Thank you. 20-year tax abatement when you have crippled us financially in this city with a deficit of $680 million, and that's not including the debt, the money that you borrowed. Yet every time we come to this council, you giving away two developers 25 years, 20 years, 30 year tax abatement. Every time we see urban renewal written anywhere on your ordinances, it's associated with a tax abatement.
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