Brick City Report

BRICK CITY DEVELOPMENT CORP

Report

FORENSIC ADVISORY CONSULTING INVESTIGATION

SEPTEMBER 6, 2014 Submitted By: Keith S. Balla, CPA,PSA,CFF,CGMA,Partner OConnor Davies, LLP 20 Commerce Dr., Suite 301 Cranford, New Jersey 07016 (201) 341-0678

OCONNORDAVIES,LLP20CommerceDrive,Suite301,Cranford,NJ07016ITel:201.341.0678IFax:908.272.2416Iwww.odpkf.comOConnorDavies,LLPisamemberfirmofthePKFInternationalLimitednetworkoflegallyindependentfirmsanddoesnotacceptanyresponsibilityorliabilityfortheactionsorinactionsonthepartofanyotherindividualmemberfirmorfirms.

September 6, 2014

Otis Rolley, Interim CEO Brick City Development Corp. 744 Broad St, Suite 1110 Newark, NJ 07102 Re: Forensic Advisory and Consulting Investigation Dear Mr. Rolley: In accordance with your request, we have performed specialized forensic consulting services to evaluate the operations of Brick City Development Corporation (BCDC) for the years 2007 through 2014. Our forensic consulting services included a review of the BCDCs projects, financing, revenues, and analysis of the overall financial operations, related party transactions and reporting. On August 11, 2014 we interviewed Victor Emenuga, Chief Executive Officer (CEO) of BCDC. Victor began his employment with BCDC in 2008 and was very familiar with its operations and activities since he served in the capacity of Chief Financial Officer (CFO) prior to 2014. Based on the responses obtained during our interview with CEO, our forensic review of the annual audited financial statements and forms 990 (not for profit tax returns) for the years 2010 to 2012 we selected and reviewed various source documents and agreements that support the activities and operations of BCDC during the period of 2007 through 2014. We analyzed available documents, records, and other pertinent information related to the above referenced period and performed a forensic operational review of activities, operations, selected policies and procedures, reports and files to determine compliance with the overall objective of BCDC as stated in their mission and corporate charter to retain, attract, and grow businesses; enhance small and minority business activity; and be a catalyst for real estate development within the City of Newark. BCDC was also planning to be a resource to streamline and expedite the economic development process to create economic growth by assisting new business, generate jobs for Newark residents and create opportunities for Newark residents to develop skills to be employed and move upward in economic prosperity.

OCONNORDAVIES,LLP20CommerceDrive,Suite301,Cranford,NJ07016ITel:201.341.0678IFax:908.272.2416Iwww.odpkf.comOConnorDavies,LLPisamemberfirmofthePKFInternationalLimitednetworkoflegallyindependentfirmsanddoesnotacceptanyresponsibilityorliabilityfortheactionsorinactionsonthepartofanyotherindividualmemberfirmorfirms.

Our forensic consulting services and evaluation of operations focused on the following areas:

x Review and analysis of operations, management, policies, and the overall functions and activities of the BCDC.

x Outlined findings and areas of question and concern in the operations and effectiveness of BCDC.

x Based on the findings and evaluation of the operations provided recommendations for future activities of BCDC.

Specific areas that we reviewed are as follows:

x One Time First Movers Loan Program x Grow Newark Loan Program x Urban Enterprise Zone (UEZ) Loan Program x Development Project Assistance Program x Small Business Assistance Program x Convention & Visitor Bureau x Newark Office of Film and Television x Bonding Assistance Program

Based on information obtained through the interviews of personnel and our analysis, our findings are set forth in the following detailed report. The accompanying report and supporting schedules present our findings. This report is designed solely to assist you and Brick City Development Corp. in understanding the findings, which were based on the interviews of personnel and review of various documents and supporting reports analyzed, and as such, is not intended to be used for any other purpose. Our analysis is limited by the documents and information provided to the date of this report. We reserve the right to amend these findings and recommendations should additional information and documents be obtained to change our findings. If you have any questions, or should you need any additional information, please do not hesitate to contact us.

Very truly yours,

Keith S. Balla, CPA, CFF, PSA, FCPA

TABLE OF CONTENTS 1) INTRODUCTION ................................................................................................................ 1

2) SCOPE OF SERVICES ...................................................................................................... 1

4) ANALYSIS OF OPERATIONS ........................................................................................... 3

5) ANALYSIS OF ONE TIME FIRST MOVERS LOAN PROGRAM ........................................ 6

6) ANALYSIS OF GROW NEWARK LOAN PROGRAM ....................................................... 13

7) ANALYSIS OF URBAN ENTERPRISE ZONE (UEZ) LOAN PROGRAM ....................... 14

8) ANALYSIS OF DEVELOPMENT PROJECT ASSISTANCE PROGRAM ......................... 16

9) ANALYSIS OF SMALL BUSINESS ASSISTANCE PROGRAM ....................................... 18

10) ANALYSIS OF CONVENTION AND VISITOR BUREAU ACTIVITIES .............................. 20

11) ANALYSIS OF NEWARK OFFICE OF FILM AND TELEVISION ACTIVITIES .................. 23

12) ANALYSIS OF BONDING ASSISTANCE PROGRAM ACTIVITIES ................................. 26

13) ANALYSIS OF VENDOR INVOICES, AGREEMENTS AND PAYMENTS ACTIVITIES. ... 28

14) RECOMMENDATIONS .................................................................................................... 32

EXHIBITS AND APPENDICES EXHIBITS Exhibit 1 Financial Statements Summary for the period of 2008 to 2012 Exhibit 2 Financial Statements Detail for the period of 2008 to 2012 Exhibit 3 Loan Funds Summary as of 8/15/14 Exhibit 4 Payments to vendors for the years 2010 through 2014. APPENDICES (D-L ELECTRONIC VERSION ONLY) Appendix A Documents Provided Appendix B Assumptions and Limiting Conditions Appendix C Curriculum Vitae, Keith S. Balla, CPA/CFF/ PSA/FCPA Appendix D Policy Manual (Provided on request) Appendix E-Financial Statements 2010-2012 Appendix F- 990 tax returns 2010-2012 Appendix G- Selected Vendor Invoices Appendix H-Newark Downtown Core Redevelopment Corp tax returns Appendix I-Selected -Board Meeting Minutes Appendix J- Selected Vendor Contracts Appendix K-NJ ELC report Empower Newark Political campaign Appendix L- NJ ELC reports Booker Team Campaigns

1) INTRODUCTION Brick City Development Corporation (BCDC) was organized in 2007. Its office is located at 744 Broad St, Suite 1110, Newark, NJ 07102. BCDC states that its mission is to retain, attract, and grow businesses; enhance small and minority business activity; and be a catalyst for real estate development within the City of Newark, New Jersey. BCDC was also planning to be a resource to streamline and expedite the economic development process to create economic growth by assisting new business, generate jobs for Newark residents and create opportunities for Newark residents to develop skills to be employed and move upward in economic prosperity. 2) SCOPE OF SERVICES We have been retained by you and Brick City Development Corp. s to perform specialized forensic consulting services to evaluate the operations of BCDC for the years 2007 through 2014. Our forensic consulting services included a review of the Brick City Development Corp operations, administration of loan programs, including a review of the projects, financing, revenues, and analysis of the overall financial operations, related party transactions and reporting. 3) PROCEDURES PERFORMED Our analysis was limited to the information made available by staff of BCDC and Victor Emenuga, CEO including financial reports, payroll records, personnel records, vendor files, vendor agreements, Board Meeting Minutes, loan files and agreements, reports submitted by vendors and consultants, vendor invoices. Any misstatements or omissions in the documents provided or in interviews could change the conclusions reached. We relied upon the following information, reports and documents:

a) Annual Audited financial statements for years ending December 31, 2010 -2012

b) Interview responses and comments provided by: 1) Victor Emenuga

c) Form 990 tax exempt tax returns downloaded from GuideStar for years 2010-2012

d) Agreement between BCDC and the City of Newark for annual funding e) Contract Agreement and invoices for activities of the Newark Office of

Film and Television f) Payroll and compensation reports provided by the payroll department

for years 2007 to 2013 g) Contract Agreement and invoices for activities of the National

Development Council, outsourcing of loan administration

h) Loan schedules, agreements and loan files in support of loans made for all loans provided by BCDC

i) Bond assistance program agreements, reports and invoices j) Detailed general ledger activity for limited accounts and supporting

invoices form vendors k) Limited Board meeting minutes 2008-2012 l) Legal invoices in support of payments to law firm for various legal

services provided m) News articles n) Internet research o) NJ Election Law Enforcement website p) Schedule of funds held in Trust by BCDC

From the aforementioned reports and schedules, and responses provided in the interviews, we selected various transactions and traced to the documents supporting the compliance with policies and procedures and the value or benefit actually provided to the City of Newark, its businesses and residents. Attached as Appendix D is a copy of the Code of Business Conduct Policy provided which was used as a basis for review and documentation of compliance by BCDC.

4) ANALYSIS OF OPERATIONS Our analysis of BCDCs operations was based on the interview responses, review of Board meeting minutes, review of annual audit reports and annual tax returns coupled with our analysis of the records and documents. Observations and Findings:

a) BCDC functions were organized into seven basic units reported in the audited financial statements as follows: x Small Minority Business Development x Commercial Revitalization x Business Attraction x Convention and Visitors Bureau x Sustainability Initiatives x Management and General

b) The annual audited financial statements allocate annual expenditures among the above units based on employee titles and assignments as a percentage of the total expenditures paid for the year. Though the financial statements separate the various units through the allocation of expenditures, it was apparent that the amounts for each program are not tracked and recorded for the exact purpose of each program. We observed that approximately 50% of the annual budget spending was for internal employee salaries and benefits. Interestingly, our review of the many vendor files and agreements indicated that most of the actual services for the above program units were outsourced to consultants and the internal employees activities provided little to no value to the City of Newark. The organization was staffed rapidly and as a consequence it appears that there was little accountability and result based evaluations performed. In addition, it was apparent from our review of the vendor files, invoices and agreements that contracts were given out to consultants with little support for the overall value to be obtained by the City of Newark.

c) Based on the agreements and documents reviewed the organization continued to increase its annual budget and personnel for alleged new programs but each new program was actually outsourced to consultants who were paid in addition to the salaries and benefits of the employees. Therefore the total of salaries and benefits for BCDC personnel of approximately $2,400,000 per year were for general and administrative costs of the BCDC operations. The other annual expenses of approximately $2,100,000 per year were paid to consultants to perform various services and research. These two categories of expenditures of BCDC comprised the annual budget expended each year of approximately $4.5 million.

d) Based on our interviews and review of documents and agreements the actual programs embarked on by BCDC which used the majority of the annual funding of the operations are listed as follows: x One Time First Movers Loan Program x Grow Newark Loan Program x Urban Enterprise Zone (UEZ) Loan Program x Development Project Assistance Program x Small Business Assistance Program x Convention & Visitor Bureau x Newark Office of Film and Television x Bonding Assistance Program

e) The CEO and staff were unable to supply any evidence of significant actual benefits derived by the City or its residents from the various programs that BCDC embarked on. For each of the programs listed above we reviewed the agreements, expenditures, and invoices and found virtually no documents which supported any significant benefits being derived by the City of Newark for the funds expended.

f) One such vendor file, Convergent Nonprofit Solutions (CNS), which we

reviewed, illustrates the lack of merit and prudence in the use of funds by BCDC. CNS was paid $125,000 for fundraising campaign study and fundraising campaign itself. Gleamed from our discussion with Victor Emenuga, CEO, CNS was not successful in raising funds and contract was terminated before BCDC paid them the entire $250,000 under the agreement. No funds were recovered from CNS.

g) During our review of financial statements for the period from 2008 through 2012

we noted that approximately $1,524,000 was spent on due diligence. Yet 40% of First Movers Loan Fund and 29% of UEZ loan fund were written off or are delinquent as of the date of this report. BCDC staff were unable to provide support for due diligence performed on all loans.

h) $1.0 million was set aside for Construction Bond Loan Funds to provide project

bond financing. $512,000 (more than 50%) of these funds were spent on general consultants expenses by December 31, 2012 and not used to provide loans.

i) Information in various loan schedules provided by BCDC staff did not agree to supporting documentation in the loan files. The loan schedules themselves did not agree to each other and listed various loan terms for the same loans.

j) South Ward Industrial Park - We made inquiry about the transaction and sale of the South Ward Industrial Park (SWIP). We are aware that Newark recovered several properties and cash in its settlement with Newark Economic Development Corporation. The City obtained title to the SWIP and BCDC was charged with finding a buyer to maximize the benefits to Newark. The Board minutes reported that the property sales price had a minimum floor of $6.2 million and that BCDC had appraisals of the property for $7.4 million. BCDC reported that the property was ultimately sold for $4.5 million. BCDC was unable to supply any information about this transaction and claimed the City employees handled the entire matter which was inconsistent with the minutes of BCDC. We question if the property was sold below market value and what benefit at the time and into the future the City received if any at all.

k) Travel to Portugal - The Board minutes of October 27, 2008 indicate that Mr. Pryor, Mr. Belo and Mr. Gomez participated in a trade mission to Lisbon on October 16. The minutes also indicate that the trip required no public funds and that the mission was being funded by the Portuguese American Chamber of Commerce. We question the appropriateness and transparency between government employees traveling to a foreign country paid for by an organization within the City and whose members do business with the City.

l) Noble Strategies - The Board minutes of February 25, 2008 indicate that the Board had reservations about the capability and qualifications of Noble Strategies yet they were hired and paid $236,000

m) We requested a copy of the severance policy approved by the Board on January

28 2014 and a detailed listing of all employees and the amount of severance compensation paid each. We specifically questioned whether the former CEO was paid severance after he submitted his resignation immediately after the Board approved the severance policy. Severance should only be considered for payment on termination and not when employees voluntarily resign to leave for another job. BCDC did not supply us with the severance policy nor did they provide the amounts paid to employees that we requested. Since we were not provided the information requested we have not determined who was paid appropriately or inappropriately at this time.

5) ANALYSIS OF ONE TIME FIRST MOVERS LOAN PROGRAM

Our analysis of the One Time First Movers Loan Program was based on our interview of the CEO and review of the loan files, agreements, documents and reports. The program was funded with $3.0 million to provide loan incentives for first time moving of businesses to Newark.

Observations and Findings:

a) General Notes on First Movers Loan Findings o Out of $3,276,453 in loans (20 loans) given out only $669,666 was

collected to date (20.44%). o Of the amount above $1,014,000 in loans (4 loans in total) were written off

due to the borrower filing for bankruptcy. Nothing appears to be recovered for these loans since BCDC did not obtain any collateral or liens.

o $512,453 in loans given out is 400+ days delinquent. o Repayment terms for many loans include number of months (6-12) of

interest payments only. o Few loans had court settlements and demand letters, however borrowers

failed to act on these. No support for additional collection efforts was provided.

o Loans were given out to applicants in distressed financial situation as bridge loans in anticipation of additional funding from government contracts or sales. BCDC accepted second/third lien on personal properties of owners as collateral. These liens were later discharged when borrowers filed for bankruptcy.

o Personal tax return of borrowers and guarantors was not included/analyzed in all cases. Often borrowers did not posses any significant assets (other than mortgaged houses) during loan application.

o Loan for Indigo Hotel of $500,000 was missing Application, due diligence support, modified loan documents after additional $2 million. loan was provided from UEZ fund. This loan appears to be structured as a grant, unless the Hotel receives another grant from City. We could not verify what the status of this loan is.

o BCDC agreed to provide $500,000 as collateral for Devils Broad LLC. No financial sustainability of Devils analysis was provided. Supporting documentation mentions that the reason for collateral was the fact that Devils were in default on $10 million loan with Citi National Bank, but

wanted to get Citi to remove liens and assessments from properties. Not clear why BCDC agreed to provide collateral.

o One loan guarantee of $100,000 was provided on a loan which purpose was to refinance business debt on personal credit cards totaling $67,000 and balances of business credit cards. The borrowers defaulted on the loan and bank collected guarantee. Borrowers subsequently filed for bankruptcy.

o The loan files for some loans were not complete and were missing essential documents needed for due diligence, such as borrowers personal tax returns and/or business financial statements.

Below are key points on delinquent or written off loans over $100,000.

b) Brick City Bar & Grill x Owner Izzy Sema x Address 35 Edison Place, Newark, NJ x Loan amount - $600,000 x Date of loan May 1, 2009 x Interest rate of loan 4.25% x Loan Status Approximately $150,000 was received in principal payments.

Currently in bankruptcy and loan was written off. x Loan purpose: funds were received for leasehold improvements of property

(restaurant) x Contractor hired was DiScola Contracting Corp.- 25 Madison Ave. Wyckoff,

NJIndividual Guaranty by Ismet I. Sema and Brian Karwoski x Guarantor TLC Investments, LLC signed by members Kruno and

Marina Kunkera. x Third Lien positions were placed on the properties of the individuals listed

above. First Lien priority was placed on the furniture and equipment.

c) Environmental & Occupancy Safety Services x Owner Sharon & Daryck Brown x Address 982 Broad St., Newark, NJ x Loan amount - $100,000 x Date of loan August 18th, 2009 x Interest rate of loan 5.25%Loan Status Approximately $5,000 was

received in principal payments.

Currently delinquent for 400+ days and final judgment to be filed with the Supreme Court.

x Loan purpose: funds were used for working capital as business was opening a second location.

x Loan collateralized by personal home of approx $600K value, with first mortgage outstanding on this house of approx $511K. Other than that, there was about $20,000 in checking and savings accounts of borrowers.

x Interim income statement as of 6/30/09 had net loss of approximately $114K.

x The borrowers were anticipating large government contract by the end of 09, however these contracts were not received.New Jersey Community Capital is acting as a Serving agent for the billing and collection of payments due to the lender.Individual Guaranty by Sharon and Daryck Brown

x Demand letters were sent multiple times and were ignored. x The loan was restructured in January 2013 pursuant to a court settlement.

However, payments according to the settlement were not received. x Sharon Brown in 2008 received an award from Make Mine a Million where

Mayor Booker was a keynote speaker.

d) Indigo Hotel (810 Broad Street, LLC) x Owner - 810 Broad Street, LLC is owned in equal parts by Brick Equity,

LLC and 196 Market Street, LLC. x Members of Brick Equity, LLC are Samer Hanini and Thafer Hanini. x Member of 196 Market Street, LLC is Islam Zughayer x Address - 810 Broad Street, Block 165, Lot 11, Newark NJ 07102. x Loan amount - $500,000 x Date of loan June 29, 2009 x Interest rate of loan 2.5% x Loan Status No principal payments were received on this loan as of the

date of this report. The loan appears in default. x Loan purpose: construction of new boutique hotel. x The loan was contingent on receipt of HUD Faade Investment Grant. It is

unclear from the supporting documents whether the grant was received. If the grant is not received this loan turns into grant, provided that construction begins within 18 months from the funding of the loan. If the construction does not begin in 18 months then loan remains in full force. If

the project is not completed in 36 months then it is considered to be in default. If the property is sold within 5 years of funding of this loan, all principle and interest becomes due together with $100K penalty. The status of this loan was not documented in the loan documents provided by BCDC staff.

x The loan is personally guaranteed by Samer Hanini, Thafer Hanini, Islam Zughayer; however no support for attempted collections of this loan was provided.

e) Port City Brew Pub, LLC x Owner Greg Gilhooly & John Feeley x Address 44 Commerce Street, Newark NJ x Loan amount - $300,000 x Date of loan July 14, 2009 x Interest rate of loan 6% x Loan Status no principal payments were received on this loan.

Currently in bankruptcy and loan was written off. x Loan purpose: leasehold improvements/construction of start-up

brewery/pub. x Borrowers and personal guarantors: Greg Gilhooly & John Feeley. x The property and all assets were already used as collateral with TD bank

for the purchase of the property. Other than personal guarantee, BCDC did not obtain any security.

x As of January 2011, the debt with TD bank was in defaulted. The debt was subsequently restructured.

x BCDC employed Faithful Gould to monitor the construction project and was paying them consulting fee.

x In addition, BCDC was working on a marketing plan for Port City as the business has not properly marketed itself.

x No tax returns of owners were evaluated during application process. x Mayor Booker attended business opening in 2010.

f) Newark Art Supply

x Owner - Chris & Ade Sedita x Address - 61 Halsey Street, Newark, NJ 07102 x Loan amount - $100,000 x Date of loan October 16, 2009

x Interest rate of loan 5% x Loan Status - Loan defaulted and written off due to the bankruptcy of

the borrowers. x Loan guaranty on $100K loan from Citibank. x Purpose of the loan is to refinance business debt on personal credit

cards totaling $67,000 and balances of business credit cards. x 2008 financial statements presented $23,140 of current assets, of which

$22,149 were in inventory. x Ade Sedita was working in 2006 for two months with Udai Tambar in

Newark in Transition, Newark, NJ, who in turn also served as the Policy Director for Newark Mayor-Elect Cory Booker's transition team and the Manager of Policy and Operations at the 9/11 United Service Group.

x Mayor Booker attended the art supply store opening back in 2002. x 2008 Personal Financial Statements from US Small Business

Administration show negative net worth. x In 2008 Chris worked for Hanini Construction who is building Indigo Hotel

and also built Rockplaza lofts.

g) Lincoln Park x Owner - Lincoln Park Coast Cultural District x Address - 1033 Broad Street, Block 118, Lot 20, Newark, NJ x Loan amount - $250,000 x Date of loan - June, 2011 x Interest rate of loan - 2.5% x Loan status Approximately $207,000 of principal was repaid on this loan.

The balance is over 700 days delinquent. x This loan was provided in addition to the first priority mortgage of $1.4

million with interest rate of $7.75% held by Community Loan Fund of NJ. x BCDC provided an additional $100K repayment guaranty on the $1.4

million loan. x Purpose of the loan bridge financing to help repay prior outstanding debt

with Wachovia and LISC of approx. $3.329 million. The borrower defaulted on these loans and lending institutions agreed to settle for the total of $1.725 million.

x Borrower has an unfavorable history with NJCC in past where loans were not repaid timely and carried outstanding balance.

x Quote from CAM_LPCCD 1.25.11 document (Credit Approval Memorandum) The City of Newark has asked New Jersey Community Capital to assist in this transaction by providing financing.

x The executive director of LPCCD was listed as Baye Adofo-Wilson. x Financial analysis performed by NJCC indicates that repayment of both

loans is contingent on the sales of the units in the property. x On December 29, 2011 an initial revolving loan of $100,000 was awarded

to the borrower. The loan was designated to pay various expenses that are reimbursable under grant from City of Newark. The loan was repaid in full.

x On July 9, 2012 a second draw on $100K revolving loan was approved for $87,452.69 to LPCCD from BCDC with interest rate of $8%. At the date of the report this loan is over 800 days delinquent with no principal repayments received by BCDC.

x In February of 2014 a new loan from NJCC was approved for $1.004 million for the purposes of refinancing existing debt of LPCCD with NJCC.

h) Devils Broad LLC x Owner - Devils Broad LLC x Address 165 Mulberry Street, Newark, NJ 07102 x Loan amount - $500,000 x Date of loan March 18, 2011 x This was collateral posted by BCDC on behalf of Devils with Citi National

Bank. The Bank issued a mortgage note in 2008 to Devils for $10 million. In 2009 a second mortgage was issued to them and rents and leases were assigned to City National Bancshares. The Devils wanted to have Citi bank release the property from liens of mortgages and assignments. Devils agree to pay $1mln towards outstanding principle balance and provide another $500K to be held as collateral at Citi. BCDC provided the collateral.

x On 2/11/13 a letter was sent to Gluck Walrath notifying them that Devils have 7 days to repay collateral to BCDC. The collateral was not repaid as of the date of this report.

Recommendation on The One Time First Movers Loan Program: BCDC must cease being in the loan business under its current administrative practice, policies and improper extension of credit. BCDCs past practices include their poor evaluation of creditors business plans; and the poor history of collections and recoveries. BCDC needs to completely revamp its operations, policies and approach to lending. BCDC has failed to date in their administration and lending functions and depleted valuable City resources that are desperately needed by the City. BCDC has tremendous opportunity to be a catalyst for success and business enhancement if properly managed. In addition, migrating to a paperless digital environment could save dramatically on file storage space and improve efficiency.

6) ANALYSIS OF GROW NEWARK LOAN PROGRAM Our analysis of the Grow Newark Loan Program was based on interview of the CEO and review of the loan files, agreements, documents and reports. There were 4 loans given our by this fund for the total of $3,617,500. 3 loans appear current, while the status of the loan to The 6th Boro (summary below), which is the second largest loan provided by this program, is unknown.

Observations and Findings: KDS 6th Boro $1,102,500.

x Owner The Sixth Boro, LLC x Address 344-346 Martin Luther Blvd, Jersey City, NJ 07305. x Loan amount - $1,102,500 x Date of loan Unknown, approximately summer 2009 based on Board

Report. x Interest rate of loan 2.5% on $632,500 of the loan and 4.25% on

470,000. x Loan status - Unknown. Loan documents provided by staff did not include

loan agreement or supporting documents for due diligence. Only the report to Board of BCDC was provided to us. The loan schedule lists this loan as completed and given out, however we could not obtain any essential information about this loan.

x Personal guarantee by Nicholas Scerbo and Patrick Russo. x The collateral coverage on this loan is only .66%, which includes a second

mortgage on a residential property of one of the owners. x City supported renovation of the building.

7) ANALYSIS OF URBAN ENTERPRISE ZONE (UEZ) LOAN PROGRAM The analysis of the Urban Enterprise Zone Loan Program was based on interview of the CEO and review of the loan files, agreements, documents and reports. In 2009 the City entered into a pass through agreement with BCDC for a revolving loan program in the amount of $9.0 million to finance projects in the urban enterprise zone in Newark. We were informed that currently $7.3 million was provided in loans to various businesses across Newark. Observations and Findings:

a) Food Depot -aka 75 First St Associates LLC

x Owner - 75 First St Associates LLC x Address - 75 1st Street, Newark, NJ 07102 x Loan amount - $2,000,000 x Date of loan - May 1, 2011 x Interest of loan - 2.0% x Loan status - the loan is in default and there is no documentation in

files evidencing any collection efforts nor any efforts to recover the loan under the personal guarantees against the owners.

x Personal guarantees from Orfilio Chaviano and Nectalier Gonzales III. x Borrowers legal representation by Trenk DiPasquale Webster. x Loan files include income and expense projections of new business. x Original owner of the real estate was Linda Cohen who sold the property

for $2,500,000 on 11/24/2010. x Food Depot accumulated debt on the property within six months with

Crown Bank totaling $6,800,000 and Food depot used the $2,000,000 to make a partial pay down for Crown Bank debt.

x No appraisals of the property were provided to us. x The tax returns submitted by Chaviano are inconsistent with the financial

statements submitted by him and no evaluation for discrepancies in the files. The tax return reports a substantial loss from business and yet the financial statements report a significant value of the business with no other supporting documents.

x The loan files have no support for the closely held businesses owned by Chaviano which represent over 50% of his net worth in the amount of $5,000,000.

x

b) Inferno Limits x Owner Inferno Limits Paintball and Laser tag, LLC x Address 400 Ferry St. Newark NJ x Loan amount - $325,000 x Date of loan - December 1, 2012 x Interest rate of loan - 3.5% x Loan status No payments were received on the loan. The entire balance

is outstanding for over 500 days. x Personal guarantees from Heriberto Soto, Jr., Raymond Ocasio III and

Kayne Kornecny. No support for collection efforts from these people was provided.

x BCDC has a first lien on all business assets and second lien on the property leased for the business (29 Highland Avenue, Newark, NJ 07104)

x We examined a draft of complaint with the court on behalf of BCDC; however it is not clear if this complaint was actually filed.

x Credit report for Soto has a fraud alert on it. x

Recommendation on Urban Enterprise Zone Loan Program: BCDC must cease being in the loan business under its current administrative practice, policies and improper extension of credit. BCDCs past practices include their poor evaluation of creditors business plans; and the poor history of collections and recoveries. BCDC needs to completely revamp its operations, policies and approach to lending. BCDC has failed to date in their administration and lending functions and depleted valuable City resources that are desperately needed by the City. BCDC has tremendous opportunity to be a catalyst for success and business enhancement if properly managed.

8) ANALYSIS OF DEVELOPMENT PROJECT ASSISTANCE PROGRAM Our analysis of the Development Project Assistance program which used UEZ funding to assist various development projects in Newark was based on our interview of the CEO and review of the loan files, agreements, documents and reports. Observations and Findings:

Listed below are various real estate development assistance projects which BCDC has provided as part of Development Project Assistance program (based on discussion with CEO):

a) CityPlex 12 - $1,200,000 was provided in a form of a loan to finance renovation of the only movie theatre in Newark. The assistance was provided in 2011 and to date $115,500 was collected through regular monthly payments. The loan is current.

b) Courtyard Marriott - $500,000 was provided for leasehold

improvements for space to be occupied by Loft 47. The loan is current and through regular monthly payments the total collected through August 1, 2014 was $27,092.

c) Food Depot - $2,000,000 was provided for bridge acquisition financing

for vacant flea market, which was planned to be redeveloped into a supermarket. The loan originated in 2011 and through sporadic payments the total collected through August 2014 was $212,478. The loan is in default and borrower requested it to be modified. No documentation of collection efforts present in loan files.

d) Hotel Indigo - $2,000,000 was provided for financing of construction of

the Hotel Indigo. The loan originated in 2009 and to date only $125,000 was collected. The loan appears current, even though their loan from First Movers Fund is past due.

e) Teachers Village - $1,000,000 was provided as gap financing for a

$120 million project which is supposed to create 200+ residential units, 3 charter schools and 30,000 sq. ft. of retail space. Loan originated in 2012 and to date $123,655 of principal was collected. Loan is current.

f) Harmony Square - $100,000 was provided as a grant from First

Movers Fund to facilitate the rehabilitation of Harmony Square, which is to provide various contracting opportunities and apprenticeships for minority based Newark Business.

No evaluation of the results of these development projects was performed by BCDC. No statistical data is maintained on the number of employment positions occupied by Newark residents at these businesses or on property taxes paid to the City of Newark.

Recommendation: We recommend that BCDC vigorously pursue collection of these delinquent loans against the personal guarantees to recovery the $2.0+ million in default. BCDC must be reorganized to operate like a community Bank in the evaluation and administration of loans and programs. Each program and the expected value and benefits need to be clearly defined and articulated and communicated throughout the organization. In addition individuals responsible for operations, activities and results need to be held accountable.

9) ANALYSIS OF SMALL BUSINESS ASSISTANCE PROGRAM Our analysis of the Small Business Assistance Program which used outside consultants to conduct seminar training for potential business owners in Newark was based on our interview of the CEO and review of the agreements, vendor invoices, documents and reports. Observations and Findings:

The BCDC Technical Assistance Program is a free entrepreneurial and small business training course designed specifically for Newark based businesses, residents and local college students who are interested in the benefits of starting a small business with the basic understanding of how to accomplish these goals. The course content covers basic topics such as financing, credit, financial reporting and budgeting, sales and marketing, and legal and regulatory issues. The course was designed in a lecture format for each participant who may have no prior business experience and those who may have some form of experience looking to improve their existing business models. In addition, the course was to provide the participants with the basics of a business plan, learning how to market and brand their ideas, strategies to grow their businesses, labor and tax laws, create a network of support, and business financing information for loans and grants. Upon successful completion of the course participants were encouraged to apply for grants toward their businesses. Our analysis noted that after the former internal accountant for BCDC Floyd Townsend & Associates was terminated, he was granted this special program to administer for BCDC. Previously Floyd Townsend & Associates provided the internal accounting for BCDC and was paid approximately $167,000 for those services. Afterward the accounting was prepared by internal staff of BCDC under the direction of the CFO, Victor Emenuga. BCDC entered into an agreement to pay Floyd Townsend & Associates (Townsend) for classes to potential small business owners in Newark. The actual seminars were outsourced by Townsend to other people. Townsend was paid $49,462 for 2010; $49,462 for 2011: $41,932 for 2012 and $38,237 for 2013 for the seminars under this program. The participants for these seminars attended four sessions lasting two hours each for a total of eight hours of seminar training. BCDC was unable to provide any evidence of the success of these potential business persons nor could they provide any evidence of any benefits to the City overall for the use of these funds. BCDC provided a long list of over 100 eligible people however when we made a more in depth inquiry and review of records we found that only few people had actually taken the 8 hour course. In one instance the original amount listed approx. 80 people and only 15 people actually attended the course. BCDC had

no follow up documents to support if the program increased new business or employment by city residents.

Recommendation: We recommend that in the future BCDC either not enter into this type of unmonitored activity or obtain grants from other established businesses and Banks to fund such programs as these and monitor any success rather than use the limited resources of the City with no accountability.

10) ANALYSIS OF CONVENTION AND VISITOR BUREAU ACTIVITIES Our analysis of the Convention and Visitor Bureau Program disclosed that Internal employees were ramped up and used at the same time it appears all of the actual work was performed by outside consultants to develop the website, planning, staffing and business outreach for potential business and visitors to Newark. Our information was based on our interview of the CEO and review of the agreements, vendor invoices, documents and reports Observations and Findings:

The Greater Newark Convention and Visitors Bureau (GNCVB) began as an incubator program under the leadership of Brick City Development Corporation (BCDC) in 2008. BCDC spent substantial funds to develop GNCVB. Upon its establishment GNCVB used internal employees of BCDC, although upon further examination of its expenses it appears that various consultants were employed to develop the website, planning, staffing and business outreach for potential business and visitors to Newark. However, the benefits of GNCVB were not solely for Newark. Our review of the invoices indicated that funds were used for advertising and billboards for Elizabeth and the Airport in addition to direct Newark activity. Additional expenses for various marketing and legal support services were expensed as part of general BCDCs expenses. For example, BCDCs legal vendor Gluck Walrath LLP was directly involved in the promotion of new legislation for Tourism Assessment Tax, designated to fund operations of GNCVB. However all expenses related to legislation were paid by BCDC and no evidence was presented to demonstrate that GNCVB will be held responsible to repay these fees. We have listed below from the financial statements the amounts classified for the operations of the CVB.

We were also informed that BCDC has an agreement with the GNCVB to repay BCDC for 2013 and 2014 expenses totaling $651,969.

2014 107,318$ 2013 544,650 2012 641,913 2011 502,269 2010 573,397 2009 614,499 2008 178,290 TOTAL 3,162,336$

Listed below are several consultants who were paid and categorized under the Convention and Visitor Bureau Program: VENDOR AMOUNT YEARCareerSports&Entertainment,Inc. 54,000.00 2010CareerSports&Entertainment,Inc. 30,404.52 2011ClearChannelOutdoor 2,700.00 2010ClearChannelOutdoor 16,880.00 2011DevilsArenaEntertainment,LLC 73,624.55 2011EventageEventProduction,Inc 44,086.49 2011GreaterElizabethChamberofCommerce 30,740.00 2010GreaterElizabethChamberofCommerce 30,980.00 2011GreaterElizabethChamberofCommerce 25,500.00 2012GroupCMedia,Inc 17,500.00 2011GroupCMedia,Inc 40,450.00 2012InFlightMediaAssociates,Inc 10,000.00 2013MediaTwo 16,000.00 2011MediaTwo 32,000.00 2012MichaelT.FiurProductions,Inc 15,000.00 2010MichaelT.FiurProductions,Inc 105,161.45 2011MILLENNIUMSTRATEGIES 22,500.00 2010MILLENNIUMSTRATEGIES 30,000.00 2011MILLENNIUMSTRATEGIES 10,000.00 2012NewarkDowntownDistrictManagementCorporation 10,000.00 2010NewarkDowntownDistrictManagementCorporation 56,768.61 2011NewarkRegionalBusinessPartnershipnrbp 26,750.00 2010NewarkRegionalBusinessPartnershipnrbp 32,610.00 2011NorthStarDestinationStrategies,Inc 63,955.41 2012PrincetonPartners,Inc 66,745.00 2011PrincetonPartners,Inc 83,750.00 2012TheStarLedger 126,267.20 2010TheStarLedger 32,720.00 2011TheStarLedger 87,972.61 2011TheStarLedger 23,038.64 2012TheStarLedger 8,100.00 2012TitanOutdoor,LLC 111,790.98 2010TitanOutdoor,LLC 17,498.96 2011TitanWorldwide 7,260.00 2010XploreCommunications,LLC 42,711.10 2010XploreCommunications,LLC 4,000.00 2013TOTAL 1,409,465.52

During the review of the Board of Directors of GNCVB we noted that two people who had outstanding loan balances with BCDC were part of the Board. Below is the list of BOD of GNCVB: Robert Provost (Chair) Chip Hallock (Secretary) NPRB John Maganifo Newark Airport Marroitt Blenda Riddick United Airlines Ron Beit Teachers Village Eric Marks Courtyard Newark Airport Craig Kebbie Courtyard Downtown Newark Crystal Stell Outlet Collection Jersey Gardens Kyle Pottinger Prudential Center Cathy Coanda Crowne Plaza Augusto Amador Newark City Council Cathleen Lewis AAA New Jersey Thafer Hanini (Vice Chair) Hotel Indigo Gordon Haas Elizabeth COC Miles Berger BW Robert Treat Pat Strocchia (Vice Chair) Marroitt Hotels Gwen Moten City of Newark

Recommendations: We recommend that the newly established GNCVB fully reimburse BCDC for the entire cost of $3,162,000 over the next six years to fully return to BCDC the City funds used for the establishment of the GNCVB.

11) ANALYSIS OF NEWARK OFFICE OF FILM AND TELEVISION ACTIVITIES Our analysis of the Newark Office of Film and Television (NOFT) was based on interview of the CEO and review of the agreements, vendor invoices, documents and reports. We were informed that NOFT was created as a collaboration effort between the City of Newark and the film and television community. BCDC paid for and provided all employees, space for employees and funds for all website and marketing expenses. Our review disclosed that BCDC used Internal employees at the same time it hired outside consultants to perform all actual work to develop the website, planning, staffing and business and community outreach to Newark and the world. Observations and Findings:

x BCDC does not charge/allocate any expenses to NOFT for the use of the space.

x BCDC agreed to provide $30,000 in 2014 as financial support to the NOFT. The funds are earmarked for NOFTs office and program needs.

x The website does not appear to be maintained, since it still makes references to Ironbound Film and Television Studio .

x Listed below are various vendors who were paid for the establishment and activities related to NOFT:

Vendors Amount YearAlvarezPhotography 7,240.00 2010AlvarezPhotography 22,636.90 2011AlvarezPhotography 16,862.40 2012BrendanHermes 2,500.00 2012DLAPiperLLP(US) 577.80 2013DreamPlay,LLC 18,275.00 2012DreamPlay,LLC 20,640.00 2013DreamPlay,LLC 3,375.02 2014FEMWORKS 22,047.03 2010FEMWORKS 61,206.51 2011FEMWORKS 23,325.00 2012FEMWORKS 18,800.00 2013IronboundFilmandTelevisionStudios,LLC 9,500.00 2012JessicaL.Pitta 2,300.00 2012KennethB.Gifford 6,645.00 2014LindseyFischbach 2,550.00 2012NewWorldImageGroup,LLC 9,214.84 2011

O'BrienKelley 14,350.65 2011O'BrienKelley 7,802.69 2012O'BrienKelley 6,709.18 2013RockAndRolledNerdPhotography 350.00 2012RyanJWeber 21,063.08 2011SoraidaPeres 19,285.92 2010TraceyPITT 4,500.00 2014TRIBECAFILMINSTITUTE 5,000.00 2013Tritonic 72,269.87 2010Tritonic 31,571.32 2011WillaimTunstead 2,383.08 2012WillaimTunstead 9,211.81 2013Total $442,193.10

TRITONIC

We reviewed the invoices of Tritonic and the invoices listed the address as 421 Halsey St., Newark NJ which happens to be the address of New Jersey Community Capital. Another invoice of Tritonic listed the address as 239 Washington St which is the same address as numerous businesses like Newark Boys & Girls Club, Citizen Schools Newark. We searched the website listed on the letterhead which is an organization that has nothing to do with what the invoice was for. In addition the phone numbers have been disconnected as well.

Based on the invoices and agreements for Tritonic it appears that this may be a bogus fictitious organization that was paid by BCDC a total of $103,840. The files did not contain information to support any value being provided to the City for the amounts paid.

We also have information that the Booker administration put forth the highest bid contract from Tritonic to perform website services for the City of Newark for $490,000 but the Newark Municipal Council rejected the contract. The lowest bid for the same work for the City was $118,700 from Gibson Technologies. The owners of Tritonic were listed as Andres Jiminez, Nunizio Esposito and Luigi Tartara each of whom we understand contributed to Booker TEAM for Newark political campaign.

Soraida Peres

We understand that Soraida Peres was employed by the City of Newark to run Channel 78. In addition Soraida ordered the television equipment for the City of Newark for the studio. Those invoices for the studio equipment were processed and paid for by BCDC to the outside vendor, Soraida Peres invoiced BCDC using a home address and personal social security number under an agreement with BCDC for $85,000. We question if

BCDC was paying for the same services that the City was paying for under the $160,000 City of Newark annual contract.

FEMWORKS

Kimberlee Williams of FEM WORKS was contracted to provide event planning etc. for BCDC for $20,000. Another contract was for logistics for $12,000. The vendor files contained no support that any work or value was provided to BCDC or the City for the payments of the invoices which totaled $125,378.

Recommendation:

We recommend that no further funds be expended in this area by BCDC. In addition we recommend that the City consider enlisting outside business persons to consider creating a Newark Sports and Entertainment Commission (NSEC) which could work collaboratively with NJPAC, the Prudential Arena, Newark Symphony Hall and Newark Bears Stadium and the Red Bulls Stadium. Working with all venues together they can obtain the most activity and revenue for the entire City. If the venues work together they can obtain better and bigger and more sports and entertainment for Newark overall. The expansion in this area could ultimately lead to possible convention activity in Newark as well. The NSEC could also work collaboratively with the universities and arts community to advance this activity in Newark. Also based on the history and contribution of artists performing at Newark Symphony Hall there should be consideration for the birth of the African American Music Hall of Fame housed out of Newark Symphony Hall.

12) ANALYSIS OF BONDING ASSISTANCE PROGRAM ACTIVITIES It appears that all work for the Bonding Assistance Program was performed by outside consultants to develop the contacts with subcontractors to assist in obtaining bonding, planning, staffing and business to outreach in Newark. The same vendors also provided monitoring for minority employment for various projects. Our information was based on interview of the CEO and review of the agreements, vendor invoices, documents and reports. Observations and Findings:

BCDC entered into several contracts with vendors for bonding assistance. BCDC entered into contract with:

MZM Construction ACB Consulting Services, LLC located at 292 Lafayette Ave., Newark, NJ 07105 under the direction of Alicia Biasotti Belotta; Noble Strategy 158 Washington St, Newark, NJ 07102; Surety Bond Associates (SBA) of Bala Cynwyd, PA by Ellen Neylan. The proposal from SBA indicated that SBA would leverage the $1,000,000 of bond assistance training funds with another $2,000,000 from a commercial bank as a line of credit to guarantee each individual $100,000 bond guarantee for the subcontractors. We were not supplied with any documents to see the value come to fruition from this program. The Bond assistance contract awarded to SBA was for $239,680.

We have listed below several of the payments for the bonding assistance vendors: VENDOR AMOUNT YEARACBConsultingServices,LLC 50,000.00 2010ACBConsultingServices,LLC 17,917.00 2011ACBConsultingServices,LLC 49,992.00 2012ACBConsultingServices,LLC 49,992.00 2013M&MLLC 100,000.00 2012MZMConstruction&Management 52,607.87 2010MZMConstruction&Management 11,137.50 2009NobleStrategy 111,257.10 2011NobleStrategy 71,331.56 2012NobleStrategy 53,502.00 2013SuretyBondAssociates 18,403.87 2010SuretyBondAssociates 53,502.71 2009TOTAL 639,643.61

Recommendation: Since the files and invoices reviewed were unable to support any significant benefit of this program and the City cant continue to waste funds on non accountable and unquantifiable benefits we recommend that no further activity be conducted in this area.

13) ANALYSIS OF VENDOR INVOICES, AGREEMENTS AND PAYMENTS ACTIVITIES.

Our analysis of Vendors focused on invoices, payments, agreements and activities as they relate to any value or benefit to Newark and any benefit to the residents and businesses of Newark. Based on the interviews and review of documents it is clear that the entire payroll and benefits of BCDC were more administrative and general than for any specific programs with any quantifiable results. Almost all work and services were outsourced to outside vendors by management of BCDC. BCDC used internal employees at the same time that all actual work was performed by outside consultants. Observations and Findings:

We noted the following general observations and deficiencies during our review of vendor invoices:

x Newark Riverfront Revival We note that payments for services were made to Christopher Caceres, 250 Ballantine Parkway, Newark, NJ 07104 a personal address for a business activity. We also noted on the invoice that Mr. Caceres email address is [email protected] which is a City of Newark email address. We question whether Mr. Caceres is getting paid both as a City of Newark employee at the same time as BCDC is making payments directly to Mr. Caceres and what conflicts of interest or potential unethical activity has occurred.

x Franzini Consulting, LLC We note that BCDC retained Franzini Consulting LLC in 2013 and 2014. The vendor files did not provide any support for the services. We do however note that Caren Franzini was the Chair of NJ Urban Enterprise Zone Authority and granted the $9.0 million UEZ loan fund to the City of Newark and BCDC on December 12, 2008. There is an appearance of a conflict that BCDC has retained Franzini for undisclosed consulting services after Franzini as a State Director awarding BCDC $ 9.0 million. Total amounts paid by BCDC to Franzini $24,293.

x Florio Perrucci Steinhardt & Fader this company served as BCDCs legal vendor. The initial retainer letter dated November 2007 states that fees will be charged at a rate of $175.00 per hour for all attorneys. The only invoices for which BCDC was charged $175.00 per hour rate were November and December 2007. All subsequent invoices reported fees charged at an hourly rate of $200.00 per hour. BCDC was unable to supply a copy of the signed retainer letter agreeing to a change in the hourly rates. During the period of 2010-2013 this vendor received $787,233.89 in payments from BCDC; however only $388,042.84 of that

amount was recorded as legal expense. BCDC staff did not provide details as to which expense account the rest of the funds was recorded.

x During the period of 2009-2014 BCDC expended $837,724.39 on various legal fees. Largest expenses incurred from Florio Perrucci and Gluck Walrath, LLP.

x Seth Wainer We understand that Seth Wainer was employed by the City of Newark as it s Senior Technology Policy Advisor. We do not have the City of Newark payroll register and therefore question whether Mr. Wainer was receiving compensation from the City of Newark at the same time he was being paid by BCDC. Total amounts paid by BCDC to Wainer $183,438.

x Pereira & Azevedo, LLC, CPAS The same accounting firm that was retained and paid by BCDC at its onset was also owed $15,000 by the political campaign for Mayor Booker. The political campaign report listed on the NJ Election Law Enforcement filings indicate that the accounting firm was owed money by the campaign. We question whether the firm violated the City of Newark pay to play ordinance instituted by Mayor Booker. Interestingly the same accounting firm was also the accountant for the Newark Downtown Core Redevelopment Corp. (NDCRC). In 2009 NDCRC paid the accounting firm $113,615. BCDC files had information about the NDCRC and the review of the vendor files didnt have any information to evaluate what purposes or relationship existed between NDCRC and BCDC.

x Newark Downtown Core Redevelopment Corp - We were informed of other City activities connected with another City of Newark redevelopment entity which wasnt clear so we obtained information about the entity. We discovered that Mayor Bookers Chief of Staff, Pablo Fonseca became a trustee of this entity along with Mayor Bookers Campaign Chairman and his initial Business Administrator Bo Kemp in 2007. NDCRC obtained its not for profit status in 2007.

The organization received $34 million in bond proceeds to acquire land for a park and realign two roads surrounding the Prudential arena. Many of the BCDC projects that obtained assistance are in this same area. By 2011 the entity was dissolved after having expended all $34 million. No park was built near the arena. The tax returns for NDCRC report expenses for the purchases of land. Purchases of land are normally reported as capital assets for an enterprise. However this entity reported the purchases of land as expenses. We question who owns the land and buildings paid for with

those funds as well. It is also interesting that NDCRC also retained the same law firm as BCDC. NDCRC paid the Florio, Perrucci, Steinhardt law firm approximately $2,582,000 between 2008 and 2010. The tax form 990 for NDCRC also reported that NDCRC paid another attorney, Francis Giantomasi $275,000 for legal services in 2009. Mr. Giantomasis resume on his website references that he has represented several of the development entities which have received funding and loans from BCDC. Giantomasi Oliveira, PC, the law firm that Mr.Giantomassi previously had was located at 292 Lafayette St Newark, NJ which interestingly is the same address of another vendor of BCDC, ACB Consulting Services LLC. ACB Consulting Services, LLC under the direction of Alicia Biasotti Belotta were paid $167,901 by BCDC for the period 2010 - 2014.

x 810 Broad Street LLC During 2010 and 2011 total of $1,648,876.90 was recorded as expense under the vendor ID 810 Broad Street LLC. We were unable to determine what kind of expense account these funds were recorded in, since BCDCs staff did not provide us with detailed general ledger or trial balance.

x Emerita Urban Renewal LLC which we were informed is the parking lot received $381,636.73 for the period from 2012-2014. Monthly parking fee for the lot is approximately $150 per car ($1,800 per year). Based on the payments BCDC paid for monthly fee for 212 cars over the period of 2.5 years.

x Tritonic who according to invoices performed creative solutions for Go Newark Restaurant Week and provided web hosting and maintenance and received for their services $103,841.19 in 2010 and 2011 does not appear to exist. The website provided on invoices belongs to an in-house health care services company. Social media accounts for this company appear to be abandoned.

x Marketing Expense for the period 2008 through 2012 was $2,244,062 (per audited financial statements).

.Listed below are additional payments to vendors in question:

VENDOR AMOUNT YEARChristopherCaceres 22,239.98 2013DavidHanrahan 13,538.47 2014FranziniConsulting,LLC 5,843.75 2014FranziniConsulting,LLC 18,449.75 2013MeganSweet 11,731.20 2013SethWainer 97,497.00 2013

SethWainer 85,941.00 2014ZacharyTownsend 59,583.31 2012TOTAL 314,824.46

Exhibit 4 lists payments to vendors for the years 2010 through 2014.

14) RECOMMENDATIONS

Recommendation on The One Time First Movers Loan Program: BCDC must cease being in the loan business under its current administrative practice, policies and improper extension of credit. BCDCs past practices include their poor evaluation of creditors business plans; and the poor history of collections and recoveries.

Out of $3,276,453 in loans (20 loans) given out only $669,666 was collected to date (20.44%).

Of the amount above $1,014,000 in loans (4 loans in total) were written off due to the borrower filing for bankruptcy. Nothing appears to be recovered for these loans since BCDC did not obtain any collateral or liens.

$512,453 in loans given out is 400+ days delinquent BCDC needs to completely revamp its operations, policies and approach to lending. BCDC has failed to date in their administration and lending functions and depleted valuable City resources that are desperately needed by the City. BCDC has tremendous opportunity to be a catalyst for success and business enhancement if properly managed. In addition, migrating to a paperless digital environment could save dramatically on file storage space and improve efficiency. Recommendation on Urban Enterprise Zone Loan Program: BCDC must cease being in the loan business under its current administrative practice, policies and improper extension of credit. BCDCs past practices include their poor evaluation of creditors business plans; and the poor history of collections and recoveries. BCDC needs to completely revamp its operations, policies and approach to lending. BCDC has failed to date in their administration and lending functions and depleted valuable City resources that are desperately needed by the City. BCDC has tremendous opportunity to be a catalyst for success and business enhancement if properly managed. Recommendation on Delinquent loans: We recommend that BCDC vigorously pursue collection of these delinquent loans against the personal guarantees to recovery the $2.0+ million in default. BCDC must be reorganized to operate like a community Bank in the evaluation and administration of

loans and programs. Each program and the expected value and benefits need to be clearly defined and articulated and communicated throughout the organization. In addition individuals responsible for operations, activities and results need to be held accountable.

Recommendation Small Business Assistance Program: We recommend that in the future BCDC either not enter into this type of unmonitored activity or obtain grants from other established businesses and Banks to fund such programs as these and monitor any success rather than use the limited resources of the City with no accountability. Recommendations Convention and Visitor Bureau: We recommend that the newly established GNCVB fully reimburse BCDC for the entire cost of $3,162,000 over the next six years to fully return to BCDC the City funds used for the establishment of the GNCVB. Recommendation on Newark Office of Film & Television:

We recommend that no further funds be expended in this area by BCDC. In addition we recommend that the City consider enlisting outside business persons to consider creating a Newark Sports and Entertainment Commission (NSEC) which could work collaboratively with NJPAC, the Prudential Arena, Newark Symphony Hall and Newark Bears Stadium and the Red Bulls Stadium. Working with all venues together they can obtain the most activity and revenue for the entire City. If the venues work together they can obtain better and bigger and more sports and entertainment for Newark overall. The expansion in this area could ultimately lead to possible convention activity in Newark as well. The NSEC could also work collaboratively with the universities and arts community to advance this activity in Newark. Also based on the history and contribution of artists performing at Newark Symphony Hall there should be consideration for the birth of the African American Music Hall of Fame housed out of Newark Symphony Hall.

Recommendation on Bond Assistance Program: Since the files and invoices reviewed were unable to support any significant benefit of this program and the City cant continue to waste funds on non accountable and unquantifiable benefits we recommend that no further activity be conducted in this area. Other Recommendations: We recommend that follow up be done to determine if the sale of the South Ward Industrial Park was for fair market value of the property. We recommend that follow up be done to determine the nature of the activities, the benefits to the City, compliance with use of Bond proceeds and disposition of the $34

million expended by Newark Downtown Core Redevelopment Corp for the period 2007 to 2011 when it liquidated.

We recommend obtaining and reviewing the severance policy and all severance payments to former employees to determine if they were properly paid in accordance with the policy.

EXHIBIT 1 Financial Statements Summary for the period of 2008 to 2012

10,088,046,49%

2,244,062,11%

1,605,477,8%

1,523,774,7%

1,222,023,6%

1,175,160,6%

958,605,5%

865,763,4%534,687,2% 385,388,2% 5yearexpensetotal

PersonnelCosts

Marketing

Otherexpenses

Duedilligence

Consultants

Projects

Legal/audit/accountingfees

RentandUtilities

Bondingassistanceprogram

Loanmanagementfees

EXHIBIT 2 Financial Statements Detail for the period of 2008 to 2012

2008 2009 2010 2011 2012 Total

SUPPORTANDREVENUEFees,CityofNewark 3,560,490$ 3,490,752$ 3,211,668$ 3,419,313$ 4,000,648$ 17,682,871$Fees,specialprograms 255,763 305,725 84,740 5,820 652,048ProjectFees 424,600 424,600Grants 100,000 298,294 512,469 405,840 487,736 1,804,339Contributions 201,385 228,774 78,053 84,636 83,943 676,791Interestincome 17,737 29,193 101,118 80,929 63,857 292,834Other 77,144 7,987 77,908 8,003 65,165 236,207

Totalsupportandrevenue 3,956,756 4,310,763 4,286,941 4,508,061 4,707,169 21,769,690

EXPENSESSalariesandwages 1,215,732 1,750,381 1,851,141 1,846,847 1,984,909 8,649,010Payrolltaxes 104,016 156,076 167,817 161,276 213,547 802,732Fringebenefits 48,302 101,012 109,449 152,191 225,350 636,304Duedilligence 517,608 402,231 127,913 199,637 276,385 1,523,774Consultants 138,386 119,071 144,506 401,963Costestimators 27,018 2,215 29,233Appraisals 91,459 20,920 12,500 4,200 7,500 136,579ConventionVisitorsBureau 38,926 344,129 383,055Newarkhelpline 30,792 8,652 39,444Freshfoodsprogram 76,252 81,128 49,318 206,698Halseystreetproject 156,150 122,304 84,740 5,820 369,014NewarkTVproduction 60,050 12,748 50,243 46,613 169,654FarmersMarket 7,295 7,295Marketing 735,813 196,123 502,153 484,151 325,822 2,244,062Bondingassistanceprogram 94,296 53,869 23,533 85,814 277,175 534,687Loanmanagementfees 90,000 68,926 75,647 68,552 82,263 385,388Contractservices 191,947 214,700 35,491 35,500 226,723 704,361Humanresourcesconsulting 10,261 13,380 23,641Depreciationandamortization 55,396 76,814 89,139 79,724 65,661 366,734Rentandutilities 103,215 193,890 192,520 185,851 190,287 865,763Trainingandconferences 84,920 40,488 15,694 34,206 41,057 216,365Accountingfees 90,518 106,151 42,994 3,684 243,347Telecommunications 47,668 68,680 68,027 61,342 64,240 309,957Officeexpenses 48,613 34,232 40,709 38,119 44,870 206,543Auditfees 39,999 53,435 45,000 40,000 45,100 223,534Legalfees 140,360 115,419 224,888 480,667Payrollservicingcosts 3,742 3,552 3,763 11,057Duesandsubscriptions 20,856 26,026 20,367 17,642 21,904 106,795Insurance 12,767 40,801 25,260 18,563 13,183 110,574Teledataofficeequipment/consulting 2,239 19,542 19,709 21,335 62,825Transportation 22,351 22,351Baddebts 1,735 102,080 103,815Miscellaneous 8,322 3,474 11,759 23,555Bankservicecharges 626 1,183 147 148 105 2,209

3,663,669 4,275,526 4,105,116 3,980,529 4,578,145 20,602,985

Changeinnetassets 293,087$ 35,237$ 181,825$ 527,532$ 129,024$ 1,166,705$

EXHIBIT 3 Loan Funds Summary as of 8/15/14

669,666,21%

1,323,787,40%

683,000,21%

600,000,18%

FirstMoversLoanFund

Principalrepaidasof8/15/14

Loanswrittenoffordelinquent

Currentloans

Loanguarantees

Fundtotal=$3,276,453

710,080,10%

2,112,522,29%4,477,398,

61%

UEZLoanFund

Principalrepaidasof8/15/14

Loanswrittenoffordelinquent

Currentloans

FundTotal=$7,300,000

EXHIBIT 4 Payments to vendors for the years 2010 through 2014.

Vendor ID Vendor Name Total Expenses 810BroadStreetLLC 1,648,876.90 FlorioPerrucci Florio Perrucci 850,832.65 WestonSolutionsInc. Weston Solutions, Inc. 681,634.18 CRGManagementLLC CRG Management LLC 564,170.34 HorizonBlueCross HORIZON BLUE CROSS BLUE SHIELD OF NJ 528,789.94 45-57 EdisonPlaceLLC 483,172.10 EmeritaUrbanRenewalLLC Emerita Urban Renewal LLC 381,636.73 RealEstateSolutionsGroupLLC Real Estate Solutions Group, LLC 311,358.07 Love&LongLLP Love and Long, LLP 282,998.88 NationalDevelopmentCouncil National Development Council 281,825.00 GreaterNewarkConservancy Greater Newark Conservancy 279,384.70 Noblestrategy NobleStrategy 236,090.66 PortCityBrewPubLLC 214,380.25 MitchellTitusLLP Mitchell & Titus, LLP 198,278.00 FloydD.TownsendAssociates Floyd D. Townsend & Associates 188,262.30 SethWainer 183,438.00 Star-Ledger The Star-Ledger 182,025.84 PhilipsPreissGrygielLLC Phillips Preiss Grygiel LLC 182,016.25 ACBConsultingServicesLLC ACB Consulting Services, LLC 167,901.00 LinkHigh LinkHigh 152,984.80 PrincstonPartners,Inc Princeton Partners, Inc 150,495.00 convergentNonprofitsolutionsLLc Convergent Nonprofit Solution, LLC 150,000.00 NewarkWarehouseInc 150,000.00 Aetna 135,088.00 Greenbaum,Rowe,Simth&Davis Greenbaum, Rowe, Smith & Davis LLP 134,448.61 Titan 129,289.94 FEMWORKS FEMWORKS 125,378.54 MichaelTFiuProduction 120,161.45 VerizonWireless Verizon Wireless 117,396.52 RSBrownfieldRedevelopmentSolutions Brownfield Redevelopment Solutions, Inc 113,056.00 THESWITZERGROUP 110,585.12 BirdsallServicesGroup 109,619.88 GluckWalrathLLP Gluck Walrath LLP 108,181.67 Anton&Everett,LLC 106,059.89 Tritonic 103,841.19 M&MLLC M & M LLC 100,000.00 TheStar-Ledger The Star-Ledger 96,072.61 53HalseyStreet 90,000.00 RiddleCompany The Riddle Company 89,703.00 GreaterElizabethChamberofCommerce Greater Elizabeth Chamber of Commerce 87,220.00 NorthStarDestinationStrategiesInc North Star Destination Strategies, Inc 86,205.94 Alvarez Alvarez Photography 85,269.30 CareerSportsEntertainmentInc. 84,404.52 WELLSFARGOINSURANCESER 76,209.77 CityofNewark(v) City of Newark 76,054.28 GroupCMediaInc Group C Media, Inc 75,450.00 DevilsArenaEntertainmentLLC 73,624.55 NewarkRegionalBusinessPartnership-n Newark Regional Business Partnership-nrbp 78,079.83

NewarkDowntownDistrict Newark Downtown District Management Corporation 68,850.11

MediaTwo Media Two 64,000.00

MillenniumStrategies MILLENNIUM STRATEGIES 62,500.00 SIMPLEVIEW 61,797.00 Mongecapitalgroup Jeffery Monge 61,244.00 DCI 60,234.25 ZacharyTownsend Zachary Townsend 59,583.31 CoachUSA Community Coach 58,438.00 Zakalak 57,684.00 ValueResearchGroup Value Research Group 54,600.00 ComcastSpotlight 53,594.00 IronboundCommunitycopr Ironbound Community Corporation 52,919.00 MZMConstructionManagement 52,607.87 CoStarGroupInc. CoStar Realty Information, Inc 51,394.30 StatefarmFCC State Farm 51,087.25 UrbanLeagueofEssexCo 51,015.40 XploreCommunicationsLLC 49,136.87 Horizon 49,117.91 MagaPathInc MEGAPATH 48,498.94 JaffeCommunications Jaffe COMMUNICATIONS 46,475.00 JonesLangLaSalle Jones Lang LaSalle Americas, Inc 45,000.00 EvenageEventProductionInc 44,086.49 MarketHalseyUrbanRenewalLLC 43,100.00 DreamPlay,LLC DreamPlay, LLC 42,290.02 Golub&Isabel Golub & Isabel 40,831.35 InkPublishing 40,621.50 NewJerseyHeadwearCorp 40,600.19 HRAAdvisorsInc. HR&A Advisors, Inc. 39,745.00 MasseyAgency Massey Agency 39,414.85 KnoxRefrigerationInc. 39,242.00 BigCatconstructionLLC 38,790.00 TheNewarkClub The Newark Club 37,680.00 UnifiedVailsburgServiceOrg 36,358.97 GraryLovallo 36,105.00 URBANRENEWABLESOLUTIONS,LLC URBAN RENEWABLE SOLUTIONS, LLC 35,355.19 COVAD 35,296.66 USMarketing U. S Marketing Office Suply Co. 34,654.56 TheAmericaFlag THE AMERICAN FLAG COMPANY, INC 33,940.00 SUNWIZE 33,646.25 ElectricalDynamics, Inc 50,360.00 Lounge13LLC 32,925.00 TweetMyJOBS.com TweetMyJOBS 32,500.00 ChristopherCaceres 32,239.97 GOTHICARCHGREENHOUSES 31,778.59 RogersCoTechnologyConsultantsLLC Rogers & Co Technology Consultants LLC 31,737.64 Futurescape,Inc 31,605.00 ClearChannel Clear Channel Outdoor 31,030.00 Vanassehangenbrustlininc Vanasse Hangen Brustlin, Inc 30,915.20 ObsidianDevelpmentLLC 30,500.00 FairmountVenturesInc 30,193.80 Janussolution 30,000.00 GMLVLLC GMLV, LLC 29,250.64 O'BrienKelley(E) O'Brien Kelley 28,862.52 SearchWide SearchWide 28,763.25 Faithful+GouldInc Faithful+Gould, Inc 28,631.78 DomingoGonzalez 27,783.14 TheFinancialClinic 26,460.00 ConwayData Conway Data 26,055.00 FrungilloCaterers 25,597.00

TheRealDealKorangyPublishing 25,500.00 AkermanSenterfittLLP Akerman Senterfitt, LLP 25,248.02 TDCARD 19,733.32 GROUNDSWELL Ground Swell Management, LLC 25,000.00 URBANACRES,INC 25,000.00 GeneEDePrez Gene E DePrez 24,751.36 DMCPubblishingLLC 24,500.00 OneSourceSolutions One Source Solutions 24,463.89 JLWilsonAssociateInc J. L Wilson Associates, Inc 24,375.00 FranziniConsultingLLC 24,293.50 MJBConsulting 23,959.00 HartRestaurantGroupLLC 23,110.00 LasserSussmanAssoc(LSA) 22,900.00 NewJerseyTreeFoundation,inc 22,780.18 AlisonHolmesAccettola 22,527.00 ToniL.Griffin 22,185.00 Sun&MoonMarketingComm, Inc Sun and Moon Communication, Inc 22,000.00 ThePohlyCompany 21,803.00 UrbanfarmFresh URBAN Farm Fresh 21,297.04 MikesellAssociates Mikesell & Associates 21,262.50 RaynJWebber 21,063.08 PartiesToG 20,747.88 ThisisitStageWorksLLC 20,739.00 BrockFarmsInc 20,645.00 Rutgersthestateuniversity 20,000.00 LincolnPark 19,990.50 Na-VetPrintingCoLLC 19,782.00 intelligenttrafficsupplyProducts 19,775.00 TynishaColeman 19,536.00 EssexCountyLatino AmericanCham 19,375.00 SoraidaPeres 19,285.92 PentonMediaInc PENTON MEDIA, INC 19,000.00 CARRASCOMMUNITYINVEST 18,902.97 OmlandEngineeringAssociatesINC. 18,883.24 VerizonConferencing Verizon Conferencing 18,832.21 360-394SpringfieldLLC 18,776.27 McMurry/TMG, LLC 18,750.00 SuretyBondAssociates 18,403.87 NewarkWorkforceInvestmentBoardinc Newark Workforce Investment Board 17,860.00 SocialSoltions 17,223.80 S9ArchitectureandEngineering,PC S9 ARCHITECTURE AND ENGINEERING, PC 17,101.53 Greenchipea 16,715.21 LyneirRichardson(E) Lyneir Richardson (E) 16,613.54 AirsealTechnology Airseal Technology 16,575.00 NickTsapatsairs&Associates Nick Tsapatsaris & Associates 16,562.50 NewWaveConstruction 16,333.32 THSMultimediaLLC 16,090.00 Option1Development Corporation Option 1 Development Corporation 15,960.00 VideoTechnologiesGroupLLC 15,920.91 SANDLERSEARCHASSOCIATES 15,863.37 CROPKING 15,755.16 VISANOW.COMINC VISANOW, INC 15,730.00 DanielCordasco 15,585.00 GES 15,514.87 Aflac AFLAC 15,393.78 Hudson AMERICAN REPROGRAPHICS COMPANY, LLC 15,017.95 BombshellSalon 15,000.00

Eyeson Halsey 15,000.00 FundConsulting,LLC FUND Consulting, LLC 15,000.00 LumiGrow 15,000.00 PookaInc 15,000.00 SUAD 15,000.00 VajaahEParker 15,000.00 INFERNOLIMITSPAINTBALL INFERNOLIMITS PAINTBALL & LASERTAG LLC 14,498.95 RubenGomez(E) Ruben Gomez (E) 14,476.51 Cablevision 14,451.96

WORKONMICSSTAFFINGRESOURCELLC fbo WORKONOMICS STAFFING RESOURCES, LLC 14,236.04

MAINSOURCEMETALFAB,LLC 14,175.00 DavidHanraHan 13,538.47 CarrinoGallagher 13,336.47 FundforthecityofNewYork 13,230.00 DanJennings (E) Dan Jennings (E) 13,107.19 ecologycenter 12,730.00 MinuteManPress MinuteMan Press of Newark 12,670.39 FrankCroke Frank Croke 12,240.00 TheaterSquareGrill 12,110.00 DianeLupke&Asso. 12,000.00 HalseyCleaner 11,941.00 GibsonMedia,Inc Gibson Media, Inc 11,905.56 MeganSweet 11,867.03 WilliamTunstead Willaim Tunstead 11,594.89 MichaelDavidson(E) Michael Davidson (E) 11,515.02 NJBiz Journal Publications, Inc 11,249.85 RandomAccess Random Access Entertainment 11,165.00 AspenLandscapingContractinginc 11,157.75 OAR Offender Aid & Restoration 11,009.00 CreativeClassGroup,LLC The Creative Class Group 11,000.00 TRF 10,887.00 At-RiskInternational 10,855.00 T&TCateringLLC T & T Catering, LLC 10,732.00 DarrylGodfrey(E) Darryl Godfrey (E) 10,556.47 Idea-Evolver,LLC Idea - Evolver, LLC 10,500.00 LacasdeDonPedro,Inc 10,344.15 Verizon Verizon 10,218.42 InfiniteExito 10,004.32 AljiraInc 10,000.00 AniyaFoodLLC 10,000.00 BurgerWallaLimitedCorporation 10,000.00 CrownTwo,Inc 10,000.00 In-FlightAssociates,inc 10,000.00 M/RUIZDESIGN,LLC M / RUIZ DESIGN, LLC 10,000.00 SWHaferWebDesign 10,000.00 TempoNetworks,LLC TEMPO Networks, LLC 10,000.00 SharpenedImage Sharpened Image, Inc 9,978.52 McCarter & EnglishLLP McCarter & English, LLP 9,964.53 coalitiontoEndChildhoodleadp 9,850.00 FirstInsurance 9,838.50 NewJerseyManufacturingEXtPro New Jersey Manufacturing Extension Program, Ir 9,800.00 Apptix 9,694.88 ClancyCallahan7Smith 9,656.25 ComitoAssociatesPCarchitecture 9,500.00 IronboundFilm&televisionStudious Ironbound Film and Television Studios, LLC 9,500.00 NewworldImageGroupLLC New World Image Group, LLC 9,214.84

CornerstoneVillageLLC 9,208.83 NathanCooper Nathan Cooper (E) 9,175.86 RoyalMarketing 9,044.50 InnovativeProgramsAssociateInc 8,925.00 aggregko 8,800.00 MarazitiFalcon&Healey MARAZITI FALCON & HEALEY, LLP 8,757.55 HudsonBlueprin Hudson Blueprint CO, Inc 8,807.50 Cybul&CybulArchitects 8,500.00 BlueFocusMediaLLC 8,491.00 CommercialCashRegisterCorpInc. 8,487.00 AT&TMobility AT & T Mobility 8,477.65 Solutions4sure.com,Inc DBA Tech Depot 8,451.22 BiedermanRedevelopmentVentures 8,294.00 AllenKantorowitz(E) 8,193.64 PrestigeTitleAgency PRESTIGE TITLE AGENCY, INC 8,091.00 MarilynKShea Marilyn K. Shea 8,000.00 NorthAveDrivingSchoolInc 8,000.00 WILDFIREINTERACTIVE, Inc Wildfire Interactive, Inc 8,000.00 Thecenterforcollablrativechange The Center for Collaborative Change 7,998.00 Crimcheck.com Crimcheck.com, Inc 7,976.88 BryanCaveLLP 7,900.00 IEDC IEDC 7,812.00 Newwork 7,680.00 RidgeAbstract 7,639.00 InternationalYouthOrganization 7,600.00 WoodridgeChenArchitects 7,500.00 NJDepartmentofTreasury 7,334.80 HackensackRiverkeeper 7,334.00 GreenerbyDesign Greener by Design LLC 7,300.00 TitanWorldwide 7,260.00 VictorC.Emenuga Victor C. Emenuga 7,154.40 FedEx FedEx 6,945.28 AmericanExpress 6,877.78 Journalcommunicationsinc JOURNAL COMMUNICATIONS, INC 6,705.00 KennethBGifford 6,645.00 NWFinancialGroupLLC 6,500.00 SmithAppraisal SMITH APPRAISAL 6,500.00 BrilliantLewisEnvironmentalServLLC 6,448.72 SoulsticeProductions 6,356.88 AdamsConstruction&Demolition 6,350.00 SeedGallery 6,271.42 ForwardEverSustainableBusAll 6,000.00 NJPac 5,966.47 RogersMarvelArchitectsPLLC Rogers Marvel Architects, PLLC 5,774.04 PolandSpring Poland Spring 5,758.42 NewJerseyInstitueofTechnology 5,700.00 MetLife MetLife - Group Benefits 5,585.35 EnchancedVOIPCommINC 5,576.31 PreciousPetalsToo Precious Petals Too 5,560.00 HonorsProgram 5,500.00 USAARChitectsPlanners&InteriorD USA Architects, Planners & Interior Designers, P. A. 5,500.00 DestinationMarketingAssc.Internatio Destination Marketing Assc. International 5,385.00 IncubatorInc 5,300.00 AdlerPrioly Adler Prioly(E) 5,155.18 CRAVINGS Cravings 5,110.22 InstituteforStudy&PracticeNonvio 5,100.00 LaurenHall(E) Lauren Hall (E) 5,056.90

B&HFOTO&ELECTRONIS 5,009.66 NewCityAmerica New City America, Inc 5,009.55 CornettPublishingCo.Inc 5,001.00 BlackHackEnterprises 5,000.00 BongiornoProductionInc 5,000.00 DanMDENose 5,000.00 GalleryAferro 5,000.00 Idealcorporatiemarketing 5,000.00 MarkAlanHewitt Archects Mark Alan Hewitt Archects 5,000.00 NewarkPublicSchools 5,000.00 NewarkworksOneStopCareerCtr NewarkWorks 5,000.00 NewJerseyRedevelopmentAuthority 5,000.00 NJTransit 5,000.00 ShearmanSterlingLLP 5,000.00 TRIBECAFILMINSTITUTE 5,000.00 KARMACONSIGNMENTBOUTIQUE 4,998.32 H2MAssociates,inc 4,950.00 PrecisionBiometricsInc 4,725.00 ICSC ICSC 4,715.00 ZeitgeistconsultingInc Zeitgeist Consulting, Inc 4,667.12 InternationalCreativemanagement 4,500.00 TheCoffeeCave The Coffee Cave 4,500.00 TPConsulting 4,500.00 SmithTravelResearchInc Smith Travel Research, Inc 4,475.00 ALM ALM 4,455.00 NewJerseyDeptof EnvironmentalProt Treasurer - State of New Jersey 4,420.57 TRSLLC 4,350.00 State of IL 4,246.40 Just Delicious Ice Cream and Sand 4,240.00 PrincipalFinancialGroup 4,202.35 PitneyBowesPostageByPhone Pitney Bowes Global Financial Services LLC 4,129.95 EnterpriseDevelopmentCtrNJIT 4,052.00 ActionItem 4,000.00 ASPIRAIncof New Jersey ASPIRA, Inc of New Jersey 4,000.00 LeadershipNewark Leadership Newark 4,000.00 PhyllisPeterson 4,000.00 PVPRADIUSLLC 4,000.00 UberBurger 4,000.00 pc/nametag, Inc pc/nametag, Inc 3,985.54 PitneyBowes PURCHASE POWER 3,972.78 OHLVEY 3,960.00 UMG BizTech4ALL 3,922.50 AmandaNWhiteLaw 3,903.81 HectorOrtiz(E) 3,858.18 ARDAPPRAISALCOM 3,800.00 ElbertReid 3,786.00 MTWTF,INC 3,750.00 ScrippsnetworkLLc 3,738.41 MCIPropertymanagement 3,552.96 FirstPresbyterianChurchin Newark 3,500.00 MullerBohlinAssociates Muller Bohlin Associates 3,500.00 SalvationArmy 3,500.00 Tri-CityPeople Corporation 3,500.00 KaiACampbell(E) 3,464.94 Landscapeforms 3,456.00 GlocallyNewark.com 3,443.36 NewJerseyCommunityCapital 3,303.40

VillageProfile 3,295.00 Elance,Inc Elan