Newark council approves 30-year tax abatement for 40 Austin Street development amid community protests

The Newark Municipal Council on Feb. 5 adopted Ordinance 6PSFA, granting a 30-year tax abatement to 40 Austin Street Urban Renewal Company LLC to build a five‑story building with 43 market‑rate rental units in the East Ward.

The measure drew several public speakers who said tax abatements are being used for market‑rate development while long‑term residents face rising costs and displacement pressures. "No one should be getting any tax abatement and there should be a moratorium on it until you figure out how you're going to relieve the tax burden of the homeowners," resident Lisa Parker told the council during the public hearing.

The developer’s representative, Joseph Kauta of Schumann Hamel Margulies, said the Austin Street project is one of five related projects and that the combined portfolio will include affordable units. "This project itself does not have affordable [units], but there will be other projects, one on Sherman Ave that's a percentage affordable, and one on Washington Street that'll be 50% affordable," Kauta said.

Lisonbee Ladd, director of economic and housing development, told the council the five projects together total 66 units and represent an approximate $53 million investment. Ladd said the five projects combined will meet inclusionary zoning requirements with 32.5% of units designated as affordable across the portfolio and that the developments will increase current tax payments from about $39,700 to roughly $333,900 when completed. She also said the affordable units will be built first.

Council members asked for clarification about how affordable units were allocated across wards after public concern that affordable units were concentrated in the South Ward while market‑rate projects clustered downtown. Councilman Silva confirmed current inclusionary zoning requires 20% affordable; Ladd said the combined projects exceed that requirement.

After public comment closed, the council moved to second reading and final passage. A roll call recorded council members present voting to adopt the ordinance.

The ordinance’s passage follows longstanding debate in Newark over the use of tax abatements for residential development and how the city monitors compliance with affordable‑housing and local hiring provisions tied to incentives.

Council members and administration indicated they would continue providing information about the linked projects and that monitoring of inclusionary‑zoning compliance and tax abatement oversight remain topics of community concern going forward.