Council approves tax abatement for Unity 12th Street Development to build affordable housing

The Newark Municipal Council convened on June 4, 2025, to discuss several key agenda items, primarily focused on housing development and tax incentives. The meeting began with a presentation by Allison Ladd, the director of economic and housing development, regarding a new construction project at Washington Street. This project will feature a five-story building with 20 residential units, split evenly between market-rate and affordable housing. Ladd highlighted the significant increase in tax revenue from this project, projecting an increase from $2,900 to $26,800 once the building is occupied.

The council then moved to discuss an ordinance granting a 25-year tax abatement to Unity Twelfth Street Development Urban Renewal LLC for a four-story residential building in the South Ward. This proposal was met with public scrutiny, particularly regarding the affordability of the housing being developed. Several residents voiced concerns that the definition of "affordable" used by the city does not align with the financial realities faced by many Newark residents, particularly those earning below $50,000 annually.

Public comments revealed a deep frustration among community members about the perceived lack of transparency and accountability in the council's dealings with developers. Speakers emphasized the need for a community agreement that ensures local residents benefit from new developments, particularly in terms of job opportunities and affordable housing options. Questions were raised about who authorized the deals and why the city was not adhering to a standard of 30% Area Median Income (AMI) for affordable housing.

The council also addressed an ordinance to designate East Runyon Street as a one-way street, which was justified by traffic studies and community meetings aimed at reducing congestion and improving safety for local businesses. However, residents questioned whether adequate public engagement had occurred prior to this decision.

In conclusion, the meeting underscored ongoing tensions between city development initiatives and community needs, particularly regarding affordable housing and local economic opportunities. The council's decisions, including the deferral of certain items, reflect a complex balancing act between fostering development and addressing the concerns of Newark's residents. The council plans to continue discussions on these issues in future meetings, emphasizing the importance of community input in shaping local policies.