{"id":1904,"date":"2016-01-11T08:30:18","date_gmt":"2016-01-11T13:30:18","guid":{"rendered":"http:\/\/www.eimpactconsulting.com\/?p=1904"},"modified":"2016-01-11T08:30:18","modified_gmt":"2016-01-11T13:30:18","slug":"newark-announces-five-year-tax-abatement","status":"publish","type":"post","link":"https:\/\/eimpactconsulting.com\/newark-announces-five-year-tax-abatement\/","title":{"rendered":"Newark Announces Five-Year Tax Abatement for Business Development and New Construction Throughout Various City Neighborhoods"},"content":{"rendered":"<p>Media Contacts: \u00a0\u00a0\u00a0\u00a0 Cheryl McCants, <a href=\"mailto:Cheryl@eimpactconsulting.com\">CMcCants@eImpactConsulting.com<\/a>, 646.872.2377 and\u00a0Marjorie Harris, Press Secretary, <a href=\"mailto:harrisma@ci.newark.nj.us\">Harrisma@ci.newark.nj.us<\/a>, 973.733.8004<\/p>\n<p style=\"text-align: center;\"><strong>\u00a0<\/strong><strong>The City of Newark Announces Five-Year Tax Abatement for Business Development and New Construction Throughout Various City Neighborhoods<\/strong><\/p>\n<p style=\"text-align: center;\">&#8212; areas outside of the downtown district, airport and seaport benefit from tax ordinance &#8212;<\/p>\n<p><strong>\u00a0<\/strong><strong>January 11, 2016, NEWARK, N.J.<\/strong> <strong>\u2014<\/strong> <strong>Mayor Ras J. Baraka <\/strong>symbolically signed into effect today changes and additions to a city ordinance that <strong>will hold real estate taxes steady until 2020 <\/strong>for multiple dwelling, commercial and industrial <strong>redevelopment projects<\/strong>, and <strong>offer a varied tax-basis until<\/strong> <strong>2020 for newly constructed<\/strong> multiple dwelling, commercial or industrial properties located in Newark neighborhoods outside of the downtown district, the Newark Airport and the Newark Port.<\/p>\n<p>As part of the Mayor&#8217;s development and revitalization strategy, the City Council approved and he signed into law, legislation that seeks to 1) promote real-estate development throughout the City and 2) incentivize small developers and business and property owners to improve their assets.<\/p>\n<ul>\n<li>Property owners of multiple dwelling, commercial or industrial properties within the designated neighborhoods that make improvements to their properties shall not receive an increase in their tax assessment over the next five (5) years. Zero percent, 0%, increase over five years.<\/li>\n<li>New construction of multiple dwelling, commercial or industrial properties shall receive a five-year tax assessment based on one of the following formulas<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>:<\/li>\n<li>Costs basis: Two percent, 2%, of construction costs of construction<\/li>\n<li>Gross-revenue basis: Fifteen percent, 15%, of the project&#8217;s annual gross revenues<\/li>\n<li>Tax phase-in basis:\n<ul>\n<li>Year 1: Zero percent, 0%, payment in lieu of taxes<\/li>\n<li>Year 2: Twenty percent (20%) payment in lieu of taxes<\/li>\n<li>Year 3: Forty percent (40%) payment in lieu of taxes<\/li>\n<li>Year 4: Sixty percent (60%) payment in lieu of taxes<\/li>\n<li>Tear 5: Eighty percent (80%) payment in lieu of taxes<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>As part of the City&#8217;s Department of Economic &amp; Housing Development&#8217;s charge to stimulate development citywide, the ordinance was approved third quarter 2015 and takes effect this tax year, 2016.\u00a0&#8220;This is one of the most aggressive measures we have taken to improve our neighborhoods,&#8221;said <strong>Economic &amp; Housing Development Director and Deputy Mayor Baye Adofo-Wilson.<\/strong> &#8220;Incentives like these are essential to ensuring that all of Newark&#8217;s neighborhoods grow and prosper. This five-year abatement allows everyone to participate in the City&#8217;s growth and development.&#8221;<\/p>\n\n<p>While this ordinance does not include the downtown district, airport or seaport, the Mayor is equally committed to their growth and development as can be seen by the recent request for ideas on ways to <a href=\"http:\/\/www.ci.newark.nj.us\/portauthority\">maximize the use of the City&#8217;s Port<\/a><a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>.\u00a0 \u201cThis new initiative will accelerate development outside of downtown, with a five-year window that enables building the housing, commercial, and industrial projects we need to revitalize our neighborhoods. \u00a0 The innovative tax abatement program is an important part of our strategy to transform all of Newark,\u201d said\u00a0<strong>Mayor Baraka.<\/strong><\/p>\n<p>All tax exemptions and abatements will require final approval by the City Council.\u00a0 Additionally, qualifying categories for improvements will also require Council or tax assessor approval. A written application for the exemption or abatement must be filed within 30 calendar days of project and\/or improvement completion.<\/p>\n<p style=\"text-align: center;\">&#8212; NEWARK &#8212;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Specified in <u>N.J.S.A<\/u>. 40A:21-9<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> <a href=\"http:\/\/www.ci.newark.nj.us\/portauthority\">www.ci.newark.nj.us\/portauthority<\/a><\/p>\n<p>The mission of Newark N.J.\u2019s department of <a href=\"http:\/\/www.ci.newark.nj.us\/government\/departments\/economic-and-housing-development\/\">Economic and Housing Development <\/a>is to create economic opportunity for Newark residents and enhance the vibrancy of our city. To this end, the department seeks to position Newark to take advantage of its unique assets, including its strategic location, a diverse and underutilized workforce, a large amount of developable land, concentration of corporate and business service firms, several major universities, and a wealth of arts and cultural assets.<\/p>\n<p>&nbsp;<\/p>\n<span class=\"inf_infusionsoft_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>Media Contacts: \u00a0\u00a0\u00a0\u00a0 Cheryl McCants, CMcCants@eImpactConsulting.com, 646.872.2377 and\u00a0Marjorie Harris, Press Secretary, Harrisma@ci.newark.nj.us, 973.733.8004 \u00a0The City of Newark Announces Five-Year Tax Abatement for Business Development and New Construction Throughout Various City Neighborhoods &#8212; areas outside of the downtown district, airport and seaport benefit from tax ordinance &#8212; \u00a0January 11, 2016, NEWARK, N.J. \u2014 Mayor Ras J&#8230;.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[57,45],"tags":[181,182,183,173,175,176,184,185],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - 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