Public Notice:
PUBLIC NOTICE City of Jersey City City Ordinance 14.101 ORDINANCE APPROVING A 10 YEAR TAX EXEMPTION FOR A MIXED USE MARKET RATE RESIDENTIAL RENTAL PROJECT TO BE CONSTRUCTED BY LHN OWNER URBAN RENEWAL, LLC, AN URBAN RENEWAL ENTITY, PURSUANT TO THE LONG TERM TAX EXEMPTION LAW N.J.S.A. 40A:20-1 ET SEQ. THE MUNICIPAL COUNCIL OF THE CITY OF JERSEY CITY DOES ORDAIN: WHEREAS, LHN Owner Urban Renewal, LLC, is an urban renewal entity, formed and qualified to do business under the provisions of the Long Term Tax Exemption Law of 1992, as amended and supplemented, N.J.S.A. 40A:20-1 et seq. (Entity); and WHEREAS, the Entity owns a portion of certain property within Block 15901, Lot 17, to be known as Master Deed Unit Sub-Unit 1.1, on the City’s Official Tax map, and more commonly known by the street address of 33 Park Avenue, and more specifically described by metes and bounds, in the application [Property]; and WHEREAS, the Property is located within the Liberty Harbor North Redevelopment Plan Area as required by N.J.S.A. 40A:20-4 and N.J.S.A. 40A:12A-5(g).; and WHEREAS, the Entity has applied for a 10 year long term tax exemption to construct a forty-four (44) story building with approximately four hundred forty-eight (448) market rate residential rental units, approximately five thousand two hundred ninety (5,290) square feet of ground floor retail space and a garage unit to contain approximately five hundred forty-four (544) parking spaces; and WHEREAS, the Entity represents that there will be no rent fee or other charge for parking, thereby exempting the parking from certain municipal charges; and WHEREAS, the Project received a site plan approval from the Planning Board on January 7, 2014; and WHEREAS, LHN Owner Urban Renewal, LLC, has agreed to: 1. pay the greater of (i) the Minimum Annual Service Charge or (ii) 10% of Annual Gross Revenue each year, which sum is estimated to be $1,559,975, and which shall be subject to statutory staged increases over the term of the tax exemption; and 2. pay an annual sum equal to 2% of each prior year’s Annual Service Charge as an Administrative Fee; and 3. provide employment and other economic opportunities for City residents and businesses; 4. pay to City for remittance to Hudson County, an equal to 5% of the Annual Service Charge upon receipt of that charge; 5. provide a contribution to the City’s Affordable Housing Trust Fund, pursuant to Ordinance 03-112, in the amount of $679,935; and 6. make a one-time contribution to the City as an Additional Service Charge equal to 1.5% of the Project’s actual Construction Costs as an element of Total Project Costs as defined in the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., estimated to be $140,661,526, or approximately $2,109,923, which shall be payable fifty (50) days from the date of the adoption of the within ordinance; and WHEREAS, the City hereby determines that the relative benefits of the project outweigh the cost of the tax exemption, for the following reasons: 1. the current real estate taxes generate revenue attributable to Master Deed Unit Sub-Unit 1.1 of only $149,141, whereas, the Annual Service Charge as estimated, will generate revenue of more than $1,559,975 to the City and an additional sum of approximately $77,999 to Hudson County; 2. it is expected that the Project will create approximately 400 jobs during construction and 20 new permanent jobs; 3. the Project will stabilize and contribute to the economic growth of businesses in the surrounding area; 4. the Project will further the overall redevelopment objectives of the Liberty Harbor Noth Redevelopment Plan Area; 5. the City’s impact analysis, on file with the Office of the City Clerk, indicates that the benefits of the Project outweigh the costs to the City; 6. construction jobs shall be subject to a Project Labor Agreement, pursuant to Section 304-33 of the Jersey City Municipal Code; 7. janitorial and unarmed security jobs on the project shall be paid a Living Wage pursuant to Section 3-76 of the Jersey City Municipal Code; and WHEREAS, the City hereby determines that the tax exemption is important in obtaining development of the project and influencing the locational decisions of probable occupants for the following reasons: 1. the relative stability and predictability of the Annual Service Charges will make the Project more attractive to investors needed to finance the Project; 2. the relative stability and predictability of the Annual Service Charges will allow the owner to stabilize its operating budget, allowing a high level of maintenance to the building over the life of the Project, which will attract purchasers to the Project and insure the likelihood of the success of the Project; and WHEREAS, LHN Owner Urban Renewal, LLC, has initially complied with Executive Order 2002-005 concerning “Disclosure of Lobbyist Representative Status” by filing an appropriate letter in the Office of the City Clerk; and WHEREAS, LHN Owner Urban Renewal, LLC has agreed to comply with the City of Jersey City’s Ordinance 07-123 Requiring Apprenticeships and Project Labor Agreement. NOW, THEREFORE, BE IT ORDAINED by the Municipal Council of the City of Jersey City that: A. The application of LHN Owner Urban Renewal, LLC, an urban renewal company, formed and qualified to do business under the provisions of the Long Term Tax Exemption Law of 1992, as amended and supplemented, N.J.S.A. 40A:20-1 et seq. a copy of which is on file in the office of the City Clerk, for a portion of property within Block 15901, Lot 17, to be known as Master Deed Unit Sub-Unit 1.1, more commonly known by the street address of 33 Park Avenue, more specifically described by metes and bounds in the application is hereby approved. B. The Mayor or Business Administrator is hereby authorized to execute a Financial Agreement, which shall include at a minimum the following terms and conditions: 1. Term: the earlier of 15 years from the adoption of the within Ordinance or 10 years from the date the project is Substantially Complete; 2. Annual Service Charge: each year the greater of: (a) the Minimum Annual Service Charge equal to $149,141 upon Project Completion, whether or not the Project is occupied; or (b) 10% of Annual Gross Revenue, estimated at $1,559,975, which shall be subject to statutory increases during the term of the tax exemption. 3. Administrative Fee: 2% of the prior year’s Annual Service Charge or $31,200; 4. County Payment: an additional 5% of the Annual Service Charge for remittance by the City to Hudson County or $77,999; 5. Affordable Housing Trust Fund: provide a contribution to the City’s Affordable Housing Trust Fund, pursuant to Ordinance 03-112, in the amount of $679,935. In the event a fee direct or indirect is ever charged for parking, an additional charge of $1.50 per square foot of parking shall be immediately due and owing; and 6. Project: a forty-four (44) story building with approximately four hundred forty-eight (448) market rate residential rental units, approximately five thousand two hundred ninety (5,290) square feet of ground floor retail space and a garage unit to contain approximately five hundred forty-four (544) parking spaces; 7. A one-time contribution to the City as an Additional Service Charge equal to 1.5% of the Project’s actual Construction Costs as an element of Total Project Costs as defined in the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., estimated to be $140,661,526, which sum is estimated to be approximately $2,109,923, which shall be payable fifty (50) days from the date of the adoption of the within ordinance; and 8. An obligation to execute (i) a Project Employment and Contracting Agreement for contracts and permanent jobs and (ii) a Project Labor Agreement for construction jobs to insure employment and other economic benefits to City residents and businesses; 9. An obligation to pay a Living Wage to all janitorial and unarmed security jobs pursuant to Section 3-76 of the Jersey City Municipal Code; C. This Ordinance will sunset and the Tax Exemption will terminate unless construction of the Project begins within two (2) years of the adoption of the within Ordinance. D. The City Clerk shall deliver a certified copy of the Ordinance and Financial Agreement to the Tax Assessor and Director of the Division of Local Government Services. E. The application is on file with the office of the City Clerk. The Financial Agreement and Project Employment and Contracting Agreement shall be in substantially the form on file in the Office of the City Clerk, subject to such modification as the Business Administrator or Corporation Counsel deems appropriate or necessary. F. All ordinances and parts of ordinances inconsistent herewith are hereby repealed. G. This ordinance shall be part of the Jersey City Code as though codified and fully set forth therein. The City Clerk shall have this ordinance codified and incorporated in the official copies of the Jersey City Code. H. This ordinance shall take effect at the time and in the manner provided by law. I. The City Clerk and Corporation Counsel be and they are hereby authorized and directed to change any chapter numbers, article numbers and section numbers in the event that the codification of this ordinance reveals that there is a conflict between those numbers and the existing code, in order to avoid confusion and possible accidental repealers of existing provisions. Public Notice City of Jersey City NOTICE IS HEREBY GIVEN that the foregoing proposed ordinance was introduced and passed on First Reading at a meeting of the Municipal Council of the City of Jersey City, in the County of Hudson, State of New Jersey, held on Wednesday, August 20, 2014 and that said ordinance will be taken up for further consideration for final passage at a meeting of said Municipal Council to be held in the Anna Cucci Memorial Council Chambers 280 Grove Street Jersey City, New Jersey on Wednesday, September 10, 2014 at 6:00 P.M. or as soon thereafter as said matter can be reached, at which time and place all persons who may be interested therein will be given the opportunity to be heard concerning the same. A copy of this ordinance has been posted on the bulletin board upon which public notices are customarily posted on in the City Hall in the City of Jersey City, and a copy is available up to and including the time of such meeting to the members of the public of the City who shall request such copies, at the Office of the City Clerk, in said City Hall, in Jersey City, New Jersey. This ordinance may be found in its entirety at the City of Jersey City’s website: www.jerseycitynj.gov/agenda.aspx?id=1268. All Exhibits are on file in the Office of the City Clerk. By Order of the Municipal Council of the City of Jersey City ________________ Robert Byrne City Clerk City Clerk’s Office 280 Grove Street, Room 118 Jersey City, New Jersey 07302 Dated: 8/21/2014 Insert Date: 8/27/2014 08/27/14 $178.50