The Newark City Council last night granted tax concessions to two Newark firms that are planning to expand or build new facilities in the Fairmount urban renewal project.

The action was taken under provisions of the state's Fox-Lance law which permits municipalities to grant such abatement in blighted areas.

The council's vote was unanimous in granting the concessions to J. Wiss & Sons Co. which plans to build three additions to its present manufacturing plant in Littleton Avenue and a two-story office building, and to Motor Club of America which will erect a new six-story home office at Central Avenue and S 7th Street.

The Fox-Lance law permits developers to pay 15 per cent of gross revenues in lieu of taxes for 15 years from the time the new construction is completed, or 2 per cent of construction costs for 15 years in lieu of taxes if the new building is to be owner-occupied.

In no instance can the amount in lieu of taxes be less than the amount of taxes paid previously on the properties before clearance of the old structures.

In each case, the firms must form urban, renewal corporations to comply with the law. MCA formed the Fairmount Central Urban Renewal Corp. and plans to build an office building of not less than six stories with approximately 60,000 square feet of rentable office space with parking facilities.

The primary purpose of the project is to meet growing requirements for modern office space by MCA, according to David Green, president. The present home office is located at 449 Central Ave. in a three story building where 225 persons are employed.

Leased to MCA

The entire project will be leased to MCA.

Total project cost is estimated at $1,642,500, and the estimated gross annual service charge to the city in lieu of taxes-based on 2 per cent of construction costs-is estimated at $32,850.

According to the application before the city council last night, construction will begin within 90 days after acquisition of the land from the Newark Housing Authority which is estimated to be about April 1. The building is scheduled for occupancy within 18 months from time construction starts.

J. Wiss & Sons formed the Sixth Street Urban Renewal Corp. and will build $1,120,072 worth of additions and new construction in two blocks bounded by Littleton, Central and 11th Avenues and W. Market and S, 7th Streets.

The scissor and cutlery manufacturing firm applied for benefits under the 15 per cent of gross revenue formula, with the new facilities to be leased by the urban renewal corporation to J. Wiss & Sons.

Estimated payments to the city the first year are $17,401, according to the application.

Wiss will build in three stages, with initial construction to start within 90 days. Construction of the second stage will begin within six months after completion of the first stage, and the third unit to begin within six months after the second stage has been completed.

Wiss has enough land in its possession to begin construction within three months.

Money Allocated

The federal government has earmarked $11.3 million to aid the city in acquiring and clearing land in the project, with the city expected, at this point, to put up another $5.2 million as its share of renewal costs.

The housing authority, however, has since applied to the federal government to have the project put on a three-fourths federal and one-quarter municipal share according to the provisions of the 1965 National Housing Act which permits a higher federal share if a locality has been declared a distressed area.

The city can make its contribution in cash or in public improvements, and it is expected that about half the municipality's share will be in the latter form.