Newark Municipal Council Regular Meeting – July 2, 2025: Tax Abatements, Budget, and Community Concerns

The Newark Municipal Council held its regular meeting on July 2, 2025, from 12:31 P.M. to 5:44 P.M. in the Council Chamber at City Hall. Seven of eight council members were present (Council Member Michael J. Silva was absent). The agenda included multiple tax abatement ordinances, a bond ordinance deferral, dozens of resolutions, and extended public comment on worker conditions, housing affordability, and senior living conditions.

Consent Calendar

• Reports and Recommendations of City Officers, Boards, and Commissions (Items 5-a through 5-d): Approved unanimously (6-0, with 2 absent). Included minutes from the Central Planning Board, Environmental Commission, North Jersey District Water Supply Commission, and Civilian Complaint Review Board.
• Administration Resolutions 7R1-a through 7R1-i: All temporary emergency appropriations adopted unanimously (7-0). Included $1,875,000 grant for hiring 15 police officers, $395,879 for overtime to address violent crime, $61,872,283 for operating expenses until the 2025 budget is adopted, $850,000 for urban forestry, $7,645,416 for WIOA workforce programs, and $424,226.72 in medical equipment from Newark Beth Israel.
• Bid Contracts 7R1-j through 7R1-r: Adopted unanimously (7-0). Included truck maintenance ($700,000), senior bus transportation ($2,160,000), furniture rental ($269,000), health education materials ($10,000), asphalt/concrete ($900,070), automotive cleaners ($400,000), office furniture ($90,000), summer meals ($1,972,237.87), and pool chemicals ($200,000).
• Donation of Sanitation Trucks 7R1-s: Authorized donation of two sanitation trucks to sister city Abobo, Abidjan, Côte d’Ivoire (7-0).
• Economic and Housing Development Resolutions 7R2-j, 7R2-k, 7R2-m, 7R2-n: Accepted WIOA grant funds ($7,645,416 and $12,971), amended individual training accounts ($1,840,690), and authorized submission of Recreation and Open Space Inventory (all 7-0).
• Finance Resolutions 7R4-a through 7R4-f: Approved tax appeal settlements totaling approximately $1,976,846 (combined refunds for Ironbound Development, W Green Hotel, Raymond Plaza East, and others), authorized estimated tax bills for Q3 2025 at a rate of $4.068 per $100 of assessed value, and accepted $7,470,560 in Zone Assistance Funds (all 7-0, with Council Member Gonzalez abstaining on 7R4-e).
• Health and Community Wellness Resolutions 7R5-a through 7R5-d: Authorized sub-recipient contracts for homelessness services (YMCA $130,011.95, Urban League $125,000, HBP RAIN Foundation $60,000) and accepted a $424,226.72 grant from Newark Beth Israel (all 7-0).
• Law Settlements 7R6-d through 7R6-g: Approved settlements ($139,000 for John F. Tucker, $834,425.14 workers’ comp for William Magnusson, $156,762.50 pre-litigation for Anthony J. Scillia, $189,000 for Schenck Price Smith and King) – all 7-0 except President Crump abstained on 7R6-f.
• Municipal Council Resolutions 7R8-a, 7R8-b, 7R8-c through 7R8-k, 7R8-l, 7R8-m: Re-appointed Council Members Gonzalez and Ramos to joint meetings; dedicated a football field at Nat Turner Park to Tahir Whitehead (July 25, 2025); renamed Ridgewood Park to Paulette Jones Legacy Park; waived fees for Brick City Jam, West Ward Block Party, Corpus Christi Walk; designated Galante Plaza; approved a hold-harmless for Senior Summer BBQs; accepted a statue of Juan Pablo Duarte (placed at Thomas Silk Park, maintained by CENDA); assigned a legal services contract for election matters; approved 79 recognitions and commendations; and expressed profound sorrow for 19 deceased individuals (with an amendment adding four more names). All adopted unanimously (7-0).
• Public Safety Resolutions 7R9-a through 7R9-e: Adopted unanimously (7-0). Included a $4,450,000 contract with University Hospital for EMS, a $74,754.23 contract for EOC interconnectivity, a $40,997.45 drunk driving enforcement grant, and two $348,854 and $287,781 JAG grants for overtime to address violent crime.
• Water and Sewer Resolutions 7R12-a, 7R12-b: Approved Change Order #1 for Pequannock Aqueduct rehabilitation (new total $14,213,278.41, 1,102 calendar days) and a $2,400,000 contract for water purification chemicals (both 7-0).
• Added Starters: Waived fees for Meeker Height Block Party and Coachman’s Block Party; approved professional services for facility condition assessment ($315,780), HVAC engineering for Pequannock Water Treatment Plant ($349,815), and a one-stop career center operator contract ($240,000) – all 7-0. Also approved the 2025 budgets for Newark Downtown District ($8,335,000) and Greater Newark Tourism Improvement District ($2,312,850) – both 7-0.

Public Comments & Testimony

• Robert Treat Hotel Tax Abatement (6PSF-a): Over 20 speakers addressed the 30-year tax abatement for renovations to the 108-year-old hotel. Supporters (employees and business associates) praised owner Miles Berger for providing jobs, career advancement, and community partnerships (e.g., with Newark Vocational High School). Opponents (including union representatives, hotel workers, and community activists) alleged low wages (minimum wage), lack of benefits, unsafe conditions, and threats of deportation by management. Several speakers also questioned the need for a tax abatement for an established hotel owned by Best Western, calling for a moratorium on tax abatements until city compliance and community benefits are secured.
• Lockwood Street Warehouse Tax Abatement (6PSF-d): Speakers criticized the 20-year abatement for a 211,388 sq. ft. warehouse, arguing the city is giving away revenue while residents face deficits. They demanded information on job creation and community benefits.
• Affordable Housing Trust Fund Amendment (6PSF-e): Multiple speakers asked for transparency on the fund’s balance and usage. Director Allison Ladd explained the amendment allows funds to be used for affordable homeownership construction. Some residents expressed concern that “affordable” units are not affordable for Newark’s median income and demanded data on the fund.
• SUWK Market Street Mixed-Use (6PSF-f): Speakers questioned the affordability of the 29 affordable units out of 225, the adequacy of parking (70 spaces for 225 units), and compliance with the Inclusionary Zoning Ordinance (IZO). Ladd noted the project was approved under old IZO, with a payment-in-lieu of about $500,000.
• Bergen Lyons Clinton SID Budget (7R2-a): Residents asked about the scope of the $500,000 budget, requesting specifics on streets covered and timeline.
• New Community Senior Buildings: Tenants from 140, 180, and 516 South Orange Avenue reported broken intercoms, non-working elevators, extreme heat, mold, bed bugs, leaking pipes, aggressive security, and lack of cooling rooms. Councilwoman Scott-Rountree confirmed a meeting with management and a follow-up plan for July 9–16.
• Other: Shakir McDougald questioned the $29 million shortfall (BA explained it is due to county property ratio reassessment). Myles Zhang addressed the Covanta incinerator contract with New York City, urging the city to demand a higher host fee. Quadeer Porter (Brothers Building a Better Nation) requested support for youth mental health crisis services.

Discussion Items

• Robert Treat Hotel Tax Abatement: Council members debated worker conditions, the hotel’s history, and the need for responsible tax abatement policies. Councilman Kelly and Councilman Ramos countered accusations against the hotel, noting its landmark status and the union’s role in organizing workers. Councilman Gonzalez suggested committee meetings could be paused until the Affirmative Action Review Council is functional. The ordinance passed 5-1-2 (Council, Gonzalez, Kelly, Scott-Rountree, Crump in favor; Quintana and Ramos abstained).
• Affordable Housing Trust Fund Amendment: Council members asked clarifying questions about the use of funds for homeownership. Ladd confirmed the funds would be used for gap financing by developers to create affordable units with deed restrictions.
• SUWK Market Street Mixed-Use: Councilman Ramos noted the project is under the old IZO and questioned the timing between site plan approval and tax abatement application (four years). Ladd explained the delays waited for tax and water/sewer compliance.
• Kawaida Towers Professional Services (7R2-g): A motion to adopt a $297,000 contract for architectural/engineering services failed (4-0-3: Council, Crump, Kelly, Scott-Rountree yes; Gonzalez, Quintana, Ramos abstained). Councilwoman Scott-Rountree later stated the item failed.
• City Hall Elevator Modernization (7R3-a): Director Dolores Martinez Wooden explained the $4,376,000 project would modernize four elevators and two wheelchair lifts while preserving historic appearance. Councilwoman Scott-Rountree questioned the cost and bid process; the director confirmed it was the lowest of two bids.
• BA Response: Business Administrator addressed the $29 million assessment (not a deficit) due to the county property ratio; explained Newark City Library workers are not city employees (city increased library funding by $1 million); and apologized for a physical confrontation with Munirah El-Bomani, stating he was pushed but should have avoided escalation.

Key Outcomes

• Robert Treat Hotel Tax Abatement (6PSF-a): ADOPTED (5-1-2).
• Lockwood Street Warehouse Tax Abatement (6PSF-d): ADOPTED (7-0).
• Affordable Housing Trust Fund Amendment (6PSF-e): ADOPTED (7-0).
• SUWK Market Street Mixed-Use Tax Abatement (6PSF-f): ADOPTED (6-1, Ramos abstaining).
• Resilient Hope Project Bond (6PSF-b) and General Capital Improvements Bond (6PSF-c): DEFERRED (7-0).
• Clinton Avenue Homeless Shelter Lease (6SF-a): DEFERRED (6-0, Ramos absent). Council President Crump stated a vote up or down is needed at the next meeting.
• Kawaida Towers Professional Services (7R2-g): FAILED (4-0-3).
• Statue of Sharpe James (Motion 7Ma): ADOPTED (5-0-3, with private funding).
• Expressions of Sorrow: Adopted for Kayla Spivey, Paulette Jones, and an amended list of 19 individuals.

Motions

• Council Member Quintana moved to honor former Mayor Sharpe James with a statue in front of City Hall, funded entirely by private donations. The motion passed 5-0-3 (Quintana, Ramos, and Silva absent).

Adjournment

The meeting adjourned at 5:44 P.M.