New Jersey Local Finance Board approves Newark’s nearly $500M elementary school lease

Newark Public Schools' Local Finance Board in New Jersey has approved a $498.4 million lease agreement for a new elementary school costing nearly $500 million. The 4-2 vote, despite concerns over cost and financing, moves the city one step closer to opening the new Riverfront Elementary School in the East Ward. The school, expected to open in spring 2029, will accommodate 667 elementary students in an overcrowded area where aging facilities have limited space.

Newark would pay about $11.3 million as base rent in the first year, with annual increases of 2.25%. The option to purchase the building for $1,000 at the end of the 30-year lease also exists. However, the agreement has raised questions about its cost and potential impact on the district's budget. Republican lawmakers and some board members have expressed concerns, with some voting reluctantly or opposing the lease entirely due to its high price and perceived political contributions to developer Scott Fields.

State Sen. Declan O’Scanlon has called for the board to reject or delay the agreement, urging the state to review its financial reports. Superintendent Roger León defended the lease, stating that it will alleviate overcrowding and that the district will cover the payments through internal reallocation.