Tuesday, January 10, 2017

Newark ShopRite Could Receive $2M City Grant

Newark, New Jersey: One of Essex County's newest and largest supermarkets could receive a grant from the City of Newark.

Newark's Department of Economic and Housing Development is proposing that the ShopRite of Newark, which opened in the Central Ward's Springfield Avenue Marketplace in 2015, receive a $2 million grant. City documents show that the funding would come from the Community and Economic Development Dedicated Trust Fund, and would contribute to the $13,098,000 fit out and building costs of the 67,000 square foot market.

The resolution states in part that the City believes that the project "is vital and in the best interests of the City and that it promotes the health, safety, and welfare of the City's residents", and that "the entity [Newark ShopRite, LLC] was faced with a significant funding gap in connection with the project that must currently be bridged in order to make the project financially feasible". It adds that "the City has further determined it is in the best interest of the City to provide the grant to the entity...from the amounts deposited in the fund in accordance with this resolution". 

The term of the grant agreement is slated to be ratified to October 17, 2013 when "construction force and machinery was mobilized for development", and will expire on October 14 of this year.

This announcement comes more than three years after $38 million in tax breaks were announced for the Springfield Avenue Marketplace project, according to WBGO.

During a special meeting today at 10:00am, the Newark Municipal Council is scheduled to vote on whether to ratify and authorize the proposal. The agenda for the meeting, which includes this resolution, was first posted online yesterday. 

Essex County Place has reached out to the City of Newark and ShopRite of Newark owner Neil Greenstein for comment regarding the reason for the grant, and this article will be updated should officials respond.

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