NJEDA Aspire Tax Credits Approved to Support Newark-Based Health Care Center

Wellness center in city's South Ward will house major Federally Qualified Health Center

TRENTON, N.J. (July 23, 2024) - Last week, the New Jersey Economic Development Authority (NJEDA) Board approved Aspire tax credits for a health care center in Newark. Located along Clinton Avenue in the city's South Ward, the center will house a Federally Qualified Health Center (FQHC), a pharmacy, and a variety of other community health offerings.

"Governor Phil Murphy envisioned the Aspire Program to support a wide-range of projects to spur community development and economic growth. Since its implementation, the program has gone on to support mixed-use housing developments, innovation hubs, production studios, and now a major health care center in the South Ward of Newark," said NJEDA Chief Executive Officer Tim Sullivan. "The South Ward Wellness Center will help transform the community by addressing health care inequities, while creating good-paying jobs and serving as an economic driver in the neighborhood. The Aspire Program is continuing to make a difference in communities across the state."

The South Ward Wellness Center, which was approved for up to $21.7 million in Aspire tax credits, will consist of over 46,000 square feet, including a nearly 12,000-square-foot FQHC. FQHCs are nonprofit, community-based clinics focused on providing quality health care services to medically underserved areas and populations, regardless of a patient's ability to pay. The Wellness Center's FQHC space will be leased by Saint James Health, Inc., which operates several FQHCs across Newark, and will offer primary and preventative community health care services.

The applicant, South Ward Promise Neighborhood (SWPN), will be the tenant for the remainder of the space at the Wellness Center. The community-focused nonprofit organization will provide numerous health care services, including group therapy, as well as maternal, medical, and physical health services. SWPN was formed in 2014 as a place-based organization focused on expanding access to quality education, food, housing, employment, and physical and mental health resources for families in Newark's South Ward.

"I commend the NJEDA and all involved in making this transformative project a reality for our community," said Senate Majority Leader M. Teresa Ruiz (D-Essex/Hudson). "It is great to see what is possible when we lock arms to bring legislative policies to life as intended. This project not only delivers crucial health services to the South Ward but also stimulates local economic growth and job creation. The South Ward Wellness Center exemplifies our ongoing efforts to tackle decades of inequality in Newark while strengthening our families through a mission-driven approach."

"Being born and raised in Newark, I understand the impact of ensuring access to healthcare in creating a healthier, more equitable community. Establishing a one-stop health center that offers access to a variety of services without needing to travel outside of this city will make a world of difference to its residents," said Assemblywoman Eliana Pintor Marin (D-Essex, Hudson). "The tax credit awards being announced today are the latest testament to the difference the Aspire program is having in cities and towns throughout New Jersey."

"The approval of the Aspire award for the South Ward Wellness Center is a monumental achievement for New Jersey," said Assemblywoman Shanique Speight (D-Essex, Hudson). "I am thrilled about the transformative impact this will have on our community, fostering wellness, growth, and a brighter future for the South Ward."

The site is located at 479-485 Clinton Avenue and 648-652 Bergen Street, and is within proximity to multiple NJ TRANSIT bus lines. The site currently consists of vacant land and older retail and warehouse buildings which will be demolished to complete the project. The project will have four stories of approximately 11,500 square feet per story. Once complete, the building will include up to 11,000 square feet of solar panels to generate clean, renewable electricity and reduce operating costs.

"The South Ward Wellness Center is yet another example of our holistic approach to progress," said Newark Mayor Ras J. Baraka. "This enables us to move several pegs forward at once, and in this case, we will provide residents with physical and mental healthcare and other wellness services, employment opportunities, a beautified neighborhood, and a boost in the community's economy. I'm grateful to the South Ward Promise Neighborhood for helping to secure this very important tax credit and grateful for the many ways that Governor Murphy and NJEDA partner with us to help the people of Newark."

Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 (ERA) to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects that have financing gaps. As a performance-based program, projects must certify that all commitments established at time of approval have been met before receiving their first disbursement of tax credits.

In line with Governor Murphy's and the NJEDA's commitment to fiscal responsibility and transparency, the Aspire program rules include provisions, such as a gap financing review and excess revenue sharing requirements, to ensure tax credits are awarded responsibly.

The Aspire program application, as well as complete rules, eligibility requirements, award sizes, and other information can be found here.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State's principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey's long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA onFacebook, Twitter, Instagram, and LinkedIn.

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