Newark school lease clears state board, but approvals remain

Newark Public Schools’ proposed $498.4 million lease for Riverfront Elementary cleared a state approval step on Oct. 14, when the New Jersey Local Finance Board voted 4-2 to approve the application. The vote advances the project, but it does not finalize the lease.

The state agenda lists the proposed agreement at $498,397,000. The school is planned for 56 Freeman Street in Newark’s East Ward and is intended to serve about 667 students. Newark officials have defended the project as a response to the East Ward’s need for more school space.

Lease terms and opening estimate

The reported agreement would run for 30 years. Chalkbeat reported that first-year base rent would be about $11.3 million, with annual increases of 2.25%. Payments would begin after substantial completion and satisfaction of other required conditions. At the end of the term, the district would have the option to buy the building for $1.

The school’s opening date remains a projection, not a confirmed schedule. School business administrator José Fuentes told Chalkbeat that the current estimate is spring 2029. A Newark Public Schools announcement in March had projected a fall 2028 opening, making spring 2029 the later estimate.

The planned school would give elementary students and families in the East Ward a new school site. The lease would also create a long-term payment commitment for the district if the remaining approvals are secured and the agreement is finalized.

Further reviews and a district vote remain

Chalkbeat reported that the state education commissioner was still reviewing the agreement after the Local Finance Board vote. The State Comptroller’s review status was not clear as of the Oct. 14 coverage. Newark school board President Hasani Council had said the district would finalize lease terms and hold another vote after state approvals.

Newark’s superintendent, Roger León, told Chalkbeat that the district planned to cover the payments by reallocating existing funds rather than seeking additional state money. The available terms describe the lease commitment, but do not establish that construction is complete or that the school is open.

Cost drew criticism, including from a board supporter

Republican lawmakers criticized the lease’s cost and raised concerns about the district’s financial management. Local Finance Board member Robert Jackson said he believed the project might be financed more cheaply, but voted in favor of the application.

The board’s action therefore moves the proposal forward without ending the review process. The final lease and a further Newark school board vote remain contingent on the outstanding approval steps.