Newark Municipal Council Special Meeting

October 8, 2024 | 10:04 AM – 11:21 AM | Council Chamber, City Hall

The Newark Municipal Council held a special meeting on October 8, 2024, primarily to consider and vote on Resolution 7R2-a (s) 24-1259, which authorized the execution of a Community Benefits Agreement (CBA) between the City of Newark, 81-93 Orange Street Urban Renewal, LLC, and the New Jersey Economic Development Authority (NJEDA). The CBA was a condition for the developer to receive tax credits under the Aspire Program Act. The project is a 14-story residential building at 81-93 Orange Street (Block 31, Lot 27) in the Central Ward, comprising 350 apartment units (20% of which will be affordable), 8,500 square feet of retail space, and a structured parking garage. The total development cost is $155.5 million. The meeting also included a public hearing and general public comment period.

Public Hearing on Resolution 7R2-a (s) 24-1259

• Allison Ladd, Director of Economic and Housing Development, presented the resolution. She noted that a community meeting was held in July 2024 and that two prior meetings occurred two years earlier. The CBA includes benefits such as art installation, a gateway sign for the city, and compliance with inclusionary zoning (20% affordable units at deeper affordability levels). The project will also use the city’s First Dibs law, giving Newark residents and city employees priority for 90 days.
• Council Member Louise Scott-Rountree asked about the lack of community engagement, noting that the site is surrounded by mostly vacant land, which may explain low attendance at community meetings. She emphasized that the few nearby nonprofits, such as FOCUS, should have been included.
• Council Member Dupré L. Kelly inquired about employment for Newark residents. Ladd responded that the project is subject to affirmative action and first-source hiring rules.
• Council Member Luis A. Quintana raised concerns about FOCUS, a nonprofit adjacent to the site, stating that the developer never met with them. He requested a meeting between the developer and FOCUS to address construction impacts. Ladd committed to arranging that meeting personally.
• Council Member Carlos M. Gonzalez confirmed that FOCUS had previously refused to sell its property to the developer, which may explain the lack of communication. He supported a meeting to mitigate impacts on FOCUS’s clients.
• Council Member Anibal Ramos, Jr. noted that the project had received all prior approvals (site plan in 2021, Aspire support in 2022, tax abatement in 2023) and that the CBA was a result of the Aspire award. He suggested that future CBAs should be developed with more community input.
• Council Member Michael J. Silva emphasized that community meetings should be open to all city residents, not just those in the immediate vicinity, citing his own experience in the East Ward.

Public Comments & Testimony

• Lisa Parker (first speaker) criticized the administration for lack of community engagement, alleging dishonesty and corruption. She stated that the public hearing was not proper community engagement and that the project should not be approved without genuine input.
• Jule Baskerville expressed horror at the decrease in affordable housing, noting that the original 2021 proposal had 70% affordable units, but the current plan has only 20%. She questioned the monitoring of vacancies in luxury apartments and called for research on developers.
• Munirah El-Bomani called the process “criminal” and accused the council of being corrupt. She demanded equitable housing and jobs, and said the vote was premature.
• Donna Jackson (North Ward resident) asked about the total number of downtown apartments and criticized the lack of community input, holding meetings in the morning, and the affordability of units (citing rents starting at $80,000–$130,000 income). She demanded 400 low-income units as part of the CBA.
• Deborah Smith-Gregory (President, Newark NAACP) initially spoke about University Hospital, then shifted to the housing issue. She requested that the council hear the community out before making a decision, noting that the Central Ward is key to the city’s rebirth.
• Fahkeira Bradley (public comment) shared her personal housing crisis, asking for assistance with an inspection and storage. She thanked the council for previous help.
• Lisa Parker (again) and Munirah El-Bomani (again) continued to accuse the administration of corruption and lack of transparency, referencing the lead service line replacement scandal.
• George Tillman, Jr. called for enforcement of the ordinance that created the Newark Employment Commission, stating that $2.5 billion should be reinvested in the community.
• Ché Colter raised concerns about University Hospital’s merger with Rutgers and Robert Wood Johnson, urging the council to secure a community seat at the table and protect the original 1968 agreement.
• Deborah Smith-Gregory (again) reiterated the need for the council to listen to both the hospital CEO’s presentation and the community’s side.

Key Outcomes

• Resolution 7R2-a (s) 24-1259 was adopted by a vote of 8-0 (all council members present voted yes).
• Allison Ladd committed to arranging a meeting between the developer and FOCUS to address Council Member Quintana’s concerns.
• The council affirmed the project’s compliance with affordable housing requirements (20% inclusionary zoning, deeper affordability), prevailing wage for construction, union wage scale for operating engineers, and green building standards.
• The meeting adjourned at 11:21 AM.

Other Business

• Business Administrator Eric Pennington defended the administration’s lead service line replacement program, stating that out of 23,000 lines, fewer than 35 had issues, all of which were fixed. He dismissed public accusations as unfounded and urged speakers to provide specific evidence.
• Council Member Carlos M. Gonzalez asked about recovering $10 million paid to contractors involved in the lead service line scandal. Pennington confirmed the city will pursue performance bonds to recover costs.
• Council President C. Lawrence Crump praised Deputy Mayor Ladd for her community engagement efforts.

Adjournment

• Motion by the Council of the Whole to adjourn at 11:21 AM. Adopted 8-0.