- Associated Press - Wednesday, April 27, 2016

NEWARK, N.J. (AP) - New Jersey’s largest city and Uber announced a deal in which the company will pay the city $3 million up front as part of a 10-year $10 million agreement.

Democratic Newark Mayor Ras Baraka and Uber New Jersey general manager Ana Mahony announced the agreement on Wednesday, following up on a tentative deal announced two weeks ago.

The deal prohibits Uber drivers from waiting for riders in designated taxi areas. Uber must also provide $1.5 million of commercial liability insurance for drivers and conduct driver background checks.

The tentative deal announced earlier this month included a fee for operating at Newark Liberty International Airport. That deal included $1 million a year for 10 years for permission to operate at the airport, one of the nation’s busiest.

But the Port Authority of New York and New Jersey, which operates the airport, raised concerns about the city’s proposal.

The agency on Wednesday reiterated its statement from last week that it has concerns and plans to discuss the matter with Newark officials “in hopes of finding a resolution.”

Baraka said Wednesday his goal was to protect the safety of Uber riders and require the company pay “its fair share.”

“The agreement is fair to all and allows Uber to become a good corporate citizen of Newark,” Baraka said in a statement.

Mahony called the agreement a model for the Legislature, which is considering statewide regulations of ride-hailing companies.

“Uber is proud to be the first ridesharing company to reach a compromise with the city of Newark that allows our driver-partners and riders to continue to use our app,” Mahony said.

The agreement, spelled out in a news release, says Newark may audit Uber’s compliance with the deal annually and that even if lawmakers enact a statewide law regulating the company, Uber is obligated to pay the $10 million.

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