Members of the Newark City Council recently voted to defer an ordinance that would grant a 25-year tax break to a new residential complex on Dr. Martin Luther King Jr. Boulevard near the city’s downtown area. The decision by the legislative body comes two years after the Newark Central Planning Board voted to approve a site plan application for the project.
The legislation states that Newark-based 636 MLK Urban Renewal LLC intends to build three four-story buildings with 42 residential units and 11 parking spaces.
The project includes 16 one-bedroom apartments, 17 two-bedroom units, and 9 three-bedroom units. Nine units have been set aside for affordable housing for residents earning between 40% and 80% of the area median income (AMI).
The AMI for Newark is $138,400, according to a dataset from the federal Department of Housing and Urban Development. That figure is more than twice the city’s median household income, $52,060, as reported by the U.S. Census Bureau between 2020 and 2024.
The legislation states that the LLC would pay an annual service charge ‘based on the greater of the minimum annual service charge or 7.5% of the annual gross revenue from the affordable units, 10% – 13% of the annual gross revenue from the market rate units’ and 15% of the annual gross revenue from the other components of the project.
Before voting unanimously to defer the legislation, Council President Luis Quintana requested that a member of the city administration provide a brief overview. Central Ward Council Member Amina Bey interjected, saying she had requested additional information from the city administration about the ordinance in July. Bey said she had not received any new information before making a motion to defer the adoption of the ordinance and before a public hearing was held. Members of the public at the meeting cheered the vote by city council.
Officials voted to pass and adopt the ordinance on first reading on July 15.
A report in TAPinto Newark says the Newark Central Planning Board approved Ascension Capital Partners LLC’s application in August 2024. That report notes that a total of 30 apartments across two buildings will front Dr. Martin Luther King Jr. Boulevard, while a third building with 12 units will be accessible via Baldwin Street. The report also noted that the applicant secured a variance for on-site parking, which would have required 42 parking spaces. The site plan application also secured a variance for lot coverage.
Records from the Essex County Tax Board indicate that the lot spans more than 17,400 square feet. It has an assessed value of $130,000 and was last sold in October 2024 for $61,080. The lot was last sold in September 1980 for $92,000.
City Council did not provide a date for a public hearing on the ordinance.
