ORDINANCE OF THE CITY OF EAST ORANGE, NEW JERSEY wrasng JF 1 [1 POPS [ST — Lo vosictiang [1 [5 1 2075 Received fom lasing Bose: Lo Foodies LL me ERE) fo - I Cons Contos /) fy f2s INN Gaba / 1 Va Appopnins oe a J Comprar [r— FE ——— ORDINANCENO. _H45 OF 2025 AN ORDINANCE OF THE CITY OF EAST ORANGE, IN THE COUNTY OF ESSEX, STATE OF NEW JERSEY, APPROVING A LONG TERM TAX EXEMPTION AND AUTHORIZING THE EXECUTION OF A FINANCIAL AGREEMENT BY AND BETWEEN THE CITY OF EAST ORANGE AND 75 HALSTED EO URBAN RENEWAL, LLC, PURSUANT TO THE LONG TERM TAX EXEMPTION LAW, N.J.S.A. 40A:20-1 ET SEQ. WHEREAS, the City of East Orange (the “City"), a municipal corporation of the State of New Jersey, is authorized pursuant to the Long Term Tax Exemption Law, N.J.5.A. 40A:20-1 et seq. (the “Exemption Law") to enter into financial agreements with qualified urban renewal entities for the development and operation of projects within a redevelopment area; and WHEREAS, the City Council in accordance with the Local Redevelopment and Housing Law, N.LS.A. 40A:12A-1 et seq. (the “Redevelopment Law"), has designated certain properties within the City as an “Area in Need of Redevelopment,” including property known as Block 692, Lots 10 on the official Tax Map ofthe Gity, commonly referred to as 75 Halsted Street (the “Project Area); and WHEREAS, the City has adopted a duly approved Redevelopment Plan for the Project Area, permitting residential redevelopment consistent with the City's goals for neighborhood revitalization; and WHEREAS, 75 Halsted EO Urban Renewal, LLC, a New Jersey limited liability company qualified as an urban renewal entity under the Exemption Law (the “Entity”), has proposed to construct a multifamily building with Forty-Two (42) unis, consisting of Thiry-Eight (38) market rate and Four (4) affordable units, over ground level parking with forty-three (43) off-street parking spaces, and related amenities (the “Project”); and WHEREAS, the Entity has submitted an application for a long term tax exemption and proposed Financial Agreement to the City (the “Application"), demonstrating that the Project would not be economically feasible without the requested exemption and that the Project will advance the redevelopment and economic development goals of the City; and WHEREAS, the Gity Council has reviewed the Application and the form of Financial Agreement, attached hereto as Exhibit A, and finds that the Project meets the statutory criteria of the Exemption Low, that the benefits to be derived from the Project will substantially outweigh any costs, and that the granting of the exemption is necessary for the realization of the redevelopment objectives of the City; and WHEREAS, pursuant o the Financial Agreement, the Entity will pay to the City the greater of an Annual Service Charge equal to 10% of the Annual Gross Revenue for years 1-10, 12% of the Annual Gross ORDINANCE No. of Page 20f3 Revenue for years 11-20, 13% of the Annual Gross Revenue for year 21, 14% of the Annual Gross Revenue foryear 22, and 15% of the Annual Gross Revenue for year 23, or the Minimum Annual Service Charge as defined in the Financial Agreement, together with a two percent (29%) Administrative Fee, and shall make a voluntary Community Benefit Contribution of $100,000.00, all in accordance with the terms and conditions of the Financial Agreement and/or Redevelopment Agreement; and WHEREAS, the exemption will remain in effect for twenty-three (23) years from the Annual Service Charge Start Date, as defined in the Financial Agreement, consistent with the Exemption Law; and WHEREAS, the City Council finds that the Project will (i further the redevelopment and revitalization of the Project Area, (i) provide needed housing, including affordable housing, (i) create construction and permanent employment, and (iv) enhance the City's tax base through PILOT revenues. NOW, THERFORE, BE IT ORDAINED, by the City Council of the City of East Orange that: SECTION ONE: APPROVAL OF FINANCIAL AGREEMENT The Financial Agreement between the City of East Orange and 75 Halsted EO Urban Renewal, LLC, substantially in the form attached hereto as Exhibit A, is hereby approved. The Mayor, City Clerk, and Corporation Counsel are hereby authorized and directed to execute the Financial Agreement on behalf of the City, with such minor modifications as the Corporation Counsel may approve as necessary or ‘appropriate to carry out the intent of this Ordinance. SECTION TWO: STATUTORY FINDINGS The Municipal Council hereby makes the following findings and determinations: 1. The Entity is a duly formed and qualified urban renewal entity under the Exemption Law. 2. The Project lies within a duly designated redevelopment area and conforms to the City's adopted Redevelopment Plan. 3. The Project will result in the construction of new housing and related amenities that will contribute to the social and economic improvement of the City. 4. The Project will not be undertaken without the benefits conferred by the Exemption Law. 5. The relative benefits of the Project outweigh any potential costs to the City. 6. The exemption and Financial Agreement conform to all statutory requirements of N.LS.A. 40A:20-1 et seq. SECTION THREE: TERM OF EXEMPTION The tax exemption shall commence upon the Annual Service Charge Start Date as defined in the Financial Agreement and shall remain in effect for twenty-three (23) years, subject to earlier termination as provided by law or the terms of the Agreement. SECTION FOUR: ANNUAL SERVICE CHARGE AND ADMINISTRATIVE FEE The Entity shall make Annual Service Charge payments to the City in the amounts and on the schedule Set forth in the Financial Agreement, in lieu of conventional ad valorem taxes, and shall pay an ORDINANCE No. of Page 3 of 3 additional two percent (2%) Administrative Fee. The City shall remit to the County of Essexfive percent (5%) of each Annual Service Charge as required by statute. SECTION FIVE: RECORDING The City Clerk and Corporation Counsel are hereby authorized to cause the executed Financial Agreement and this Ordinance to be recorded with the Essex County Clerk and to file a copy with the Director of the Division of Local Government Services in the Department of Community Affair. SECTION SIX: SEVERABILITY If any section, paragraph, clause, or provision of this Ordinance shall be adjudged invalid, such adjudication shall apply only to that section, paragraph, clause, or provision, and the remainder of this Ordinance shall be deemed valid and effective. SECTION SEVEN: EFFECTIVE DATE “This Ordinance shall take effect upon final passage and publication as provided by law. FIRST READING Comins SAE [vio Connon AE SV [a8 [vio] CoA AS MONK — Lo 1] (GARRETT-WARD. a —— LENEUS I. -~- LEWIS TT JAMES XT 7 FAUNTLEROY | | PULLS. RX LT RECORD OF COUNCIL VOTE ON SECOND READING & FINAL PASSAGE Counclineries SAY] NV [ AB [VETO] Councimerser [as vero) EET ese Ns de MONK I GARRETT-WARD —] [Lewis | JAMES 1 FAUNTLEROY | [TTT] PULLINS, JR. Xn Vote AB Av NV <Not Vong Qed) ACTIONON VEO: «fost foOverie uscd on ist estiog. A 1 \_pns Aiton Fn Reng oaas rv —— Moped: 1 Ned Ls RecomideedbyComit pons Er — Vormon Pu - IS — mam Ted Gren Cotte rom