Newark council advances multiple tax abatements as residents demand affordability, oversight

The Newark Municipal Council on Feb. 19 advanced and in several cases adopted multiple redevelopment financing measures that include long-term tax abatements for projects in the Central Ward and other parts of downtown, prompting a steady stream of public comment demanding clearer affordability guarantees and oversight.

Supporters and residents who spoke during a lengthy public hearing pressed the council to explain how abatements are awarded, who benefits and whether the city tracks developers' compliance with affordable-housing and resident-employment commitments.

The debate focused on a 30-year tax abatement for a project on Brantford Place (identified on the agenda as 20 Brantford Urban Renewal LLC) and related financial agreements that split an earlier approved project into multiple phases. Deputy Mayor Lisonbee Ladd, director of economic and housing development, told the council the underlying project was approved in 2020 and that the current ordinances divide the previously approved plan into separate financial agreements because different funders are providing financing for separate phases. "Phase 1 has already been completed," Ladd said. "The only difference is now there will be 3 as opposed to 1 financial agreement that is related to each of the projects. There is no change in the incentive that's being granted by the city that was approved in 2020." (Lisonbee Ladd, Director of Economic and Housing Development)

Why it matters: Residents and tenant leaders said the city's use of long abatements is contributing to displacement and is not producing housing that existing Newark households can afford. Several speakers asked that the council require developers to demonstrate compliance with prior abatements before receiving new incentives and to provide itemized reports on in-lieu payments to the city's housing trust fund.

Resident Lisa Parker, who identified herself as representing homeowners and neighborhood groups, pressed the council for immediate legislative action to protect longtime residents. "We have 1,000 homeowners' and' we need business because we want y'all to do the work," Parker said. She accused the city of giving extensive abatements to outside developers who "don't contribute into our school system" and of failing to extend relief to homeowners facing revaluation.

Other residents raised related concerns: revised inclusionary zoning standards, whether projects that now charge "market-rate" rents actually deliver the low- and moderate-income units Newarkers need, and whether the city's affirmative action review process is enforcing resident-hiring rules on projects that receive incentives.

Several speakers cited the city's updated inclusionary zoning ordinance and the Mount Laurel housing doctrine, saying the standards in practice do not produce units affordable to families earning Newark incomes. "If it's $17,000 then that means your area median income ... 30% is what your rent's supposed to be according to HUD," said Felicia Austin Singleton, during the hearing.

Developer, community and council responses: Bashir Ali, who said he has supported the local Muslim community's efforts to regain a place of worship lost years ago, told the council he was "conflicted" over the Brantford proposal because the project could return a prayer space to his community but could also worsen affordability pressures citywide. Tenant leaders and tenant-association presidents urged routine air-quality checks and enforcement of property standards on buildings that already have long-term abatements.

Council action and votes at a glance: - Ordinance 6FA: granted a 20-year tax abatement to PGH and Associates Urban Renewal LLC for a new five-story mixed-use building — adopted on first reading (roll call: council members recorded as voting in favor). (see provenance) - Ordinance 6PSFA: granted a 30-year tax abatement to 20 Brantford Urban Renewal LLC (Central Ward) for construction of 81 residential units — after public hearing council advanced/approved the ordinance. Several residents appeared to oppose the length of the abatement and to press for stronger affordability and compliance reporting. (see provenance) - Amended financial agreements for phases of a previously approved project (identified on the agenda as amended and restated financial agreements / split into parts to accommodate different funders) — council advanced/adopted the amendments, while the deputy mayor said the total number of units and affordable-unit commitments remain unchanged from the 2020 approval.

What residents asked the council to do: Petition the state delegation for tools beyond local control; require developers to provide compliance reports on prior abatements; publish itemized accounting of in-lieu payments to the housing trust fund; and ensure the affirmative action review council enforces Newark resident employment goals on projects that receive incentives.

Where it goes next: The deputy mayor said the current measures reflect previously approved city incentives and that the split into multiple financial agreements responds to financing needs. Several speakers said they will keep returning to council meetings and to legal avenues, including the courts and state agencies, to press for stronger affordability guarantees and enforcement.

Ending: City staff did not announce additional limits on the length of future abatements at the meeting. Council members requested clarifying information from the economic development office and acknowledged the number of public speakers; one council member asked the administration to provide additional details on compliance and the development partners involved in the multi-phase projects. The matter remains subject to continuing public scrutiny and follow-up requests from the council and neighborhood leaders.