By: Jeffrey R. Rich
Firm client Tucker Development was awarded more than $38M in subsidies in the form of bond financing and tax breaks by the Economic Development Authority to fund its mixed use development project on Springfield Avenue in Newark. The awarded amount represents an aggregate of approvals through three EDA programs; the Redevelopment Area Bond financing program, tax credits under the Urban Transit Hub program and tax credits under the Economic Redevelopment and Growth Grant program. The Redevelopment Area Bond financing approval is also linked to the approval of a tax abatement which received preliminary approval recently from the City of Newark and is expected to be granted final approval by the City Council. The State's Local Finance Board, which must review and approve all municipal tax abatements, granted its approval at its meeting this week.
Throughout the creation of this project, Genova Burns’ Commercial Real Estate & Redevelopment Practice Group has been closely involved with Tucker Development every step of the way since early 2008 beginning with the acquisition of the property; through modifications and amendments to the redevelopment plan that existed prior to the client's acquisition; through site approvals at the municipal, county and state levels; through litigation challenges to the approvals; through approval by the City of the tax abatement and approvals by the EDA referenced in an article on NJ.com. Commercial Real Estate & Redevelopment Practice Group Director Partner Jeffrey R. Rich was lead counsel on site acquisition and finance.