Tax Abatement Policy

City of Newark

Property Tax Abatement Program, Newark, NJ

Under Mayor Cory Booker, the City of Newark wanted to create favorable redevelopment policies that would attract new investment in the City.    RESGroup worked with the Deputy Mayor for Economic Development and Housing and staff to create tax abatement and redevelopment policies, and identified strategies for new funding sources to serve as incentives for development and vehicles for public- private partnerships. An extensive amount of time was spent testing and developing the tax abatement program to ensure that it would achieve the Booker Administration’s goal of attracting private investment throughout the City despite recent economic conditions.  The use of the Redevelopment Area Bonds, a form of tax abatement that provides additional up-front funding for a project, has resulted in new hotels opened or under construction, investments in industrial job producing properties, and residential/retail projects are under construction or recently completed.  The tax abatement and redevelopment area bonds have provided revenue directly to the City through increased payments in lieu of real estate taxes.

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