Newark council approves multiple developer tax incentives; residents press for stronger housing oversight

Newark Municipal Council on June 4 approved a series of developer tax incentives and a one-year extension to an existing affordable-housing agreement, while dozens of residents urged the city to enforce maintenance rules and to prioritize deeper affordability in new projects.

City leaders voted to advance or adopt ordinances granting tax incentives for multiple new-construction projects — including a five-story building at 449 Washington Street and a four-story building on Twelfth Street — and to designate a short stretch of East Runyon Street as one-way. The council also authorized a one-year extension to the financial agreement for Spruce Park Apartments to align with an expiring U.S. Department of Housing and Urban Development housing assistance payment (HAP) contract.

The votes come as tenants from several large developments — including buildings owned or managed by New Community and other housing providers — pressed the council during the public comment portion for immediate repairs, working smoke alarms, functioning emergency pull cords and fuller security measures. Community members repeatedly called for the administration and the council’s oversight bodies to require stronger project labor and project maintenance commitments before granting long-term tax breaks.

Allison Ladd, director of economic and housing development, told the council that the 449 Washington Street project will be five stories with 20 residential units, “10 will be market and 10 will be affordable,” and that the property’s tax contribution to the city would rise from about $2,900 to roughly $26,800 once occupied. “The city did not sell this land to the developer,” Ladd said, adding that the developer already owns the site.

Residents at the podium countered that the city’s definition of “affordable” must be clearer and translated into enforceable requirements in developer agreements. “Bring the AMI down to 30%,” said Shakir McDougall, a Newark resident who addressed council members during public comment. Felicia Austin Singleton, another frequent speaker, criticized long abatement terms and said residents have seen “deplorable conditions” in existing buildings that have received incentives: “You don't have to give it. It's an incentive,” she said of tax abatements.

Council members acknowledged the public complaints and noted ongoing follow-ups. Several council members said staff and developers have committed to specific repairs and that administration representatives would return with status reports. Council leaders also flagged that one of the votes — a proposed contract for emergency medical services discussed later in the meeting — failed after members raised concerns about city ambulance response times.

Votes at a glance

- Ordinance B: 30-year tax abatement for 449 Washington Street Urban Renewal Company LLC (new five-story building, 20 units; 10 affordable, 10 market). Adopted. Vote recorded in roll call as: Kelly — yes; Quintana — yes; Ramos — yes; Scott Rountree — yes; Silva — yes; Council President — yes; Gonzalez — absent.

- Ordinance C: 25-year tax abatement to Unity Twelfth Street Development Urban Renewal LLC (four-story residential in South Ward). Public hearing held; adopted on roll call (majority yes; council roll call recorded attendees voting yes as listed in the public record).

- Ordinance D: Amend one-way street rules to designate East Runyon Street (between Elizabeth Avenue and Sherman Avenue) as one-way to improve traffic flow near local businesses. Adopted on roll call.

- Ordinance G: First amendment/one-year extension of the Spruce Park Associates tax abatement agreement to align with an expiring HUD Housing Assistance Payment (HAP) contract; extension intended to keep units operating under the HAP and thus affordable for another year. Adopted on roll call. Allison Ladd said the HAP contract “helps keep those units affordable so that the residents are only paying 30% of their income towards rent” and that the request “extends to the same period in which the HAP contract expires.”

- Related: Council discussion later in the meeting about a competitive contract to provide emergency medical services (item 7R9A) concluded with the item failing after council members expressed concerns about response times and asked for further briefings and possible structural changes to dispatch/ambulance arrangements.

Why it matters

Long-term tax abatements and financial agreements are a common tool to spur private investment in Newark. Supporters point to increased property activity and, in some cases, short-term increases in tax revenue once projects are completed. Critics and many public commenters at Wednesday’s meeting argued that abatements should come with firmer, enforceable guarantees about on-site jobs for Newark residents, project labor agreements, and binding requirements that new units meet deeper affordability thresholds (residents and community organizers repeatedly urged 30% of area median income as the desired affordable tier).

What council members said next

Council members and administration staff committed to follow up with developers and with the tenant groups who testified. Council leaders said they would ask for written status reports from developers about promised repairs and for updated review materials from the city’s affirmative-action/contracting oversight processes. Several council members also proposed site walkthroughs with tenants, code enforcement and council staff to verify repairs in the high-rise buildings that residents highlighted.

Meeting context and next steps

Public comment dominated the first half of the meeting; dozens of speakers addressed housing, building conditions and development incentives. Council members advanced the adopted ordinances to first- or final-reading stages as required by municipal procedure; advertised public hearings were scheduled where legally required. Tenants and advocacy groups asked the council to place stricter conditions on future abatement approvals and to publish clearer “report cards” on developers’ compliance with prior agreements.

The council requested further briefings on the city’s EMS procurement after members said response-time data and contract structure needed more work. Developers and administration staff are expected to provide follow-up reports to the council in upcoming committee meetings and at the July regular meeting when some first-reading ordinances will return for final action.