[Adopted by the City Council of the City of Newark 11-1-2023 by Ord. No. 6PSF-E, 11-01-2023. Chapter history includes Ord. No. 6PSF-C, 2-4-2015 as amended by Ord. No. 6PSF-A, 3-16-2016; Ord. No. 6PSF-C, 5-10-2018. Amendments noted where applicable.]
[Adopted 11-1-2023 by Ord. No. 6PSF-E, 11-01-2023]
Pursuant to N.J.S.A. 40A:12A-8(f) of the Local Housing and Redevelopment Law, potential redevelopers with the City of Newark ("City") shall be required to enter into a Redevelopment Escrow Funding Agreement ("Funding Agreement") to cover the City's administrative expenses, evaluations, negotiation and approval of agreements, and other costs associated with the implementation and administration of redevelopment projects (collectively "Redevelopment Project Costs and Expenses") with the City. This Funding Agreement shall be a prerequisite to all Redevelopment Agreements with the City where the cost of the Redevelopment Project is as described below.
[Adopted 11-1-2023 by Ord. No. 6PSF-E, 11-01-2023]
The Funding Agreement acknowledges and binds the Developer to post an escrow with the City of Newark to pay the City's Redevelopment Project Costs and Expenses. This includes, but is not limited to, all legal, engineering and planning costs associated with the redevelopment. The Director of the City's Finance Department will establish an escrow account for the Redevelopment Project. The escrow deposit will be held by the City of Newark's Finance Department, for the Department of Economic and Housing Development, and disbursed, pursuant to a Funding Agreement.
[Adopted 11-1-2023 by Ord. No. 6PSF-E, 11-01-2023]
Potential Redevelopers shall be required to make payments to an escrow account to cover the City's Redevelopment Project Costs and Expenses towards the potential redeveloper's project. The initial deposit requirement and, if necessary, the amount to be replenished shall be based on the cost of the potential redeveloper's project as described below:
Cost of Redevelopment Project
Escrow Deposit
Up to $500,000
$2,500
$500,000 to $1,000,000
$5,000
$1,000,000 to $5,000,000
$10,000
$5,000,000 to $15,000,000
$15,000
$15,000,000 to $25,000,000
$25,000
Above $25,000,000
$50,000
If, when and as often as may occur that the Escrow is drawn down to or below $5,000 for escrow amounts greater than $5,000 or is drawn down to or below $1,500 for escrow amounts $5,000 or less, the Potential Redeveloper shall be notified and shall within 10 days of the notification provide to the Escrow Agent an additional amount sufficient to replenish the Escrow to the amounts set forth in this Ordinance.