An upcoming development in Newark’s Central Ward that was announced nearly a year and a half ago is slated to receive a tax break lasting for close to two decades.
The BLVD, a mixed-use building that is envisioned for 535-541 Dr. Martin Luther King, Jr. Boulevard, is the subject of a tax abatement ordinance that was introduced by the Newark Municipal Council in September.
While new tax breaks for residential and mixed-use developments have become rare in Jersey City, the granting of such abatements is still commonplace in Newark.
This ordinance calls for granting 535 MLK Blvd Urban Renewal, LLC an 18-year abatement from taxes on improvements. The company would have to pay an annual service charge to Newark’s municipal government that would range from 7.5 to 15 percent of the project’s annual gross revenue.
The version of the ordinance that was introduced says that 600 square feet of commercial space, 36 parking spaces, 32 “market rate” residential units, and eight “affordable housing” units are proposed as part of the complex. A total of 41 residential units were previously expected.
The plans for The BLVD involve Mid-Atlantic Investment Alliance tearing down the old Hamilton Building and Loan Association building, which is located close to Arts High School. The former bank structure was sold for $1.55 million in December 2019.