Newark council approves multiple long-term tax abatements amid protests over affordability and oversight

The Newark Municipal Council on Thursday approved multiple long-term tax abatements and advanced others after public hearings that drew repeated criticism from residents and housing advocates.

Council members voted to grant 25-year long-term tax abatements for a Central Ward project (sponsored by Councilwoman Scott Rountree, seconded by Councilman Kelly), a South Ward 100% affordable project at 824–830 South 20th Street, and a North Ward project at 300–304 Garside Street. The council advanced a separate 30-year abatement for a Central Ward development at 107–109 Broad Street to first reading. Deputy Mayor Allison Ladd, director of economic and housing development, provided unit counts and Area Median Income (AMI) restrictions for the projects during the hearing.

Why it matters: tax abatement and payment‑in‑lieu structures shift future tax revenue flows and are a primary tool for encouraging new construction. Residents, tenant advocates and some council members said the city must use abatements to secure more affordable units, local jobs, project labor agreements and clearer enforcement of developer obligations.

Council action and project details - Central Ward (Central Point Urban Renewal LLC). The ordinance granting a 25‑year tax abatement was sponsored by Councilwoman Scott Rountree and seconded by Councilman Kelly; the measure passed on roll call with all present members recorded as voting yes. Public discussion covered the project’s 77 residential units and an affordable component of 16 units. Deputy Mayor Allison Ladd told the council the project includes 61 market units and 16 affordable units: 4 units restricted to 40% of AMI, 4 at 60% of AMI and 8 at 80% of AMI. (Action: ordinance — outcome: approved.)

- 824–830 South 20th Street (824 South Twentieth Management Urban Renewal Entity LLC). Council advanced and adopted an ordinance granting a 25‑year abatement for a four‑story, 25‑unit building described in the record as 100% affordable. Ladd said the breakdown will be three units at 30% of AMI, nine at 50% and 13 at 60% (all below 60% AMI). The ordinance passed on roll call. (Action: ordinance — outcome: approved.)

- 300–304 Garside Street (300 Garside Management Urban Renewal LLC). An ordinance granting a 25‑year abatement for a five‑story building with 25 affordable rental units passed on roll call. Ladd reported the AMI distribution: 3 units at 30% AMI, 9 at 50% AMI and 13 at 60% AMI. Ladd also said total project cost is approximately $8.7 million. (Action: ordinance — outcome: approved.)

- 107–109 Broad Street (10‑7 / 10‑9 Broad Development Urban Renewal LLC). Council advanced a 30‑year abatement ordinance for a six‑story building that, as read into the record, would contain 48 market‑rate units and 8 affordable units. The item advanced to first reading for later public hearing. (Action: ordinance — outcome: advanced to first reading.)

Public comments and council response Residents and advocates repeatedly called for stronger community benefits, local hiring, project labor agreements and clearer AMI commitments. Common themes: - Affordability and AMI transparency. Multiple commenters, including Felicia Austin Singleton and Deborah Salters, pressed the council and developers to state explicit AMI targets and to ensure inclusionary zoning set‑asides meet local need. “You don’t even have an AMI up here,” Felicia Austin Singleton said during public comment, calling for clarity about whether units would be set at 80%, 60%, 40% or lower. - Local hiring, project labor and enforcement. Lisa Parker urged the council to require project labor agreements and to enforce affirmative action obligations so Newark residents get construction jobs. She told the council, “Where’s the project labor agreement? … Every single developer here is short changing the people that live here to work here.” - Worries about giveaways. Speakers including Manir Ramadi and others described tax abatements as “giveaways” that provide developers long-term benefits while residents face rising taxes and displacement.

Council members and administration responses Deputy Mayor Allison Ladd repeatedly emphasized that several projects before the council exceed inclusionary zoning requirements and provided the specific AMI breakdowns for each project during rebuttal. Council members noted that some projects come to the city already proposed as affordable and argued that it can be appropriate to attach abatements to projects that expand the affordable housing stock. Councilman Lehi (Ramos) pointed out a recent law change that requires 90‑day first‑right offers for Newark residents on inclusionary projects, and Ladd said that 80% of units funded in recent projects have gone to Newark residents since that change.

What’s next Several of the ordinances will be advertised and return for public hearing and final passage at a subsequent Council meeting. Residents and advocates attending Thursday’s meeting called for follow‑up: detailed reports on tax‑abated projects’ compliance, evidence of local hiring, the status of outstanding taxes from previously abated properties and an audit of the tax abatement program.

Ending note Council records show the measures passed by roll call vote in each instance where the ordinance was advanced or adopted; the public record from the Sept. 4 meeting contains multiple public commenters asking the council to attach more enforceable community benefits to future abatements.