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AN ORDINANCE AUTHORIZING THE MAYOR, AND/OR HIS DESIGNEE, THE DEPUTY MAYOR/DIRECTOR OF THE DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT TO EXECUTE THE SALE AND TRANSFER OF THE CITY OF NEWARK PROPERTIES IDENTIFIED ON EXHIBIT A PURSUANT TO AN AGREEMENT FOR SALE AND REDEVELOPMENT OF LAND.
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WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the "Act"), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City of Newark (the “City”), by Resolution 7Rdo(AS) adopted by the Municipal Council on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, the Municipal Council then approved the following redevelopment plans, as amended, for the five (5) Wards within the City (collectively, the "Redevelopment Plans"):
• Ordinance 6S&Fa(S) August 17, 2005 Third Amendment to the North Ward Redevelopment Plan;
• Ordinance 6S&Fe September 21, 2005 First Amendment to the East Ward Redevelopment Plan;
• Ordinance 6S&Fc(S) August 17, 2005 Second Amendment to the West Ward Redevelopment Plan;
• Ordinance 6S&Fd(S) August 17, 2005 Third Amendment to the South Ward Redevelopment Plan; and
• Ordinance 6S&Fe(S) August 17, 2005 First Amendment to the Central Ward Redevelopment Plan.
WHEREAS, said Redevelopment Plans comply with the requirements of all applicable State and Federal statutes and the regulations promulgated thereunder; and
WHEREAS, pursuant to N.J.S.A. 40A: 12A-8(f), the City is authorized to arrange or contract with redevelopers for the planning, re-planning, construction or undertaking of any redevelopment project; and
WHEREAS, on October 27, 2023, the City of Newark issued an Open-ended Solicitation (the “Solicitation”), seeking individuals, experienced contractors, developers, local community based non-profit and for-profit organizations, and local community development organizations to participate in the City’s Equitable Investments in Newark Communities Initiative (the “EINC”); and
WHEREAS, the Solicitation for the EINC was issued to help increase affordability and build wealth by creating or renovating multi-family buildings and homes that residents can own and/or rent, expanding opportunities for Minority/Women-owned Business Enterprise (MWBE) developers and contractors, and providing jobs and job training for Newark residents; and
WHEREAS, the Solicitation identified certain vacant City-owned lots, which the City has determined that: (i) are no longer needed for public use; and (ii) the redevelopment thereof in accordance with the applicable provisions of the respective Ward Redevelopment Plan will contribute greatly to the EINC in furtherance of increasing affordability by creating or renovating multi-family buildings and homes to be sold and/or rented to residents at affordable prices in accordance with the legislative intent, goals and objectives of the LRHL; and
WHEREAS, on December 18, 2023, the City’s Department of Economic and Housing Development received solicitation responses from numerous respective entities (the “Developers”) in response to the Solicitation outlining their intentions to acquire and develop the respective properties (the “Property”), for the respective consideration (the “Purchase Price”), in the respective manner (the “Project”), as set forth in detail in Exhibit A; and
WHEREAS, all new Residential, Mix-Use Development or Substantial Rehabilitation having fifteen (15) or more Residential units shall set aside 20% of the total number of Residential units as Income-Restricted Units in accordance with the Standards set forth in the City’s Inclusionary Zoning Ordinance 6PSF-b, adopted on October 4, 2017, as amended by Ordinance 6PSF-g, adopted on August 2, 2023 as codified in the City’s Municipal Code under Title 41:21-1, et seq., and as may be further amended from time to time, which require that those units set aside will be maintained and deed-restricted as affordable housing units for a period of thirty (30) years in accordance with the requirements of the Inclusionary Ordinance; and
WHEREAS, based upon the Department of Economic and Housing Development’s review of the qualification statement and other information, the City has determined that the respective Redeveloper possess the proper qualifications, financial resources and the capacity to acquire and redevelop the respective Property in furtherance of Equitable Investments in Newark Communities (EINC); and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(f), the Department of Economic and Housing Development has recommended that the City sell the Properties to the Redevelopers for the Purchase Prices, which price, and under such terms as, the City deems to be reasonable, for the purpose of carrying out the Redevelopment Projects, in accordance with the Act, the Agreement, and the Redevelopment Plan; and
WHEREAS, the City and Redevelopers desire to enter into a separate redevelopment agreement for the sale and redevelopment of the respective Property with the respective Redeveloper (the “Agreement”) in order to memorialize the terms and conditions of the respective Project, in a form substantially consistent to the Agreement, attached hereto as Exhibit B; and
WHEREAS, the Agreement shall supersede any previous agreement(s) or conditions related to the redevelopment of the Property.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Recitals set forth above are incorporated herein as if set forth at length.
2. The City of Newark hereby accepts each offer by each of the following Developers to acquire and redevelop the following respective properties, for the following respective consideration to carry out the following respective redevelopment project, pursuant to Local Redevelopment and Housing Law (the “LRHL”), N.J.S.A. 40A:12A-1, et seq., as amended and supplemented, and N.J.S.A. 40A:12A-8(f).
3. The Mayor of the City of Newark, and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute a separate Redevelopment Agreement for the sale and redevelopment of the following Property with the following Redeveloper to carry out the following Project, in a form substantially consistent with the one attached hereto as Exhibit A.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the Agreement concerning the sale and transfer of the Property and may enter into and execute any related documents which may be necessary to effectuate same, including, but not limited to a Quitclaim Deed with a Right of Reverter clause for the Property in a form substantially consistent with the one attached hereto as Exhibit C.
5. Said Quitclaim Deed conveying title to the Property to the Redeveloper shall be approved as to form and legality by the City’s Corporation Counsel and attested to and acknowledge by the City Clerk.
6. The Mayor of the City of Newark, and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to execute the Declaration of Covenants and Restrictions in substantially the form attached hereto as Exhibit D, which shall be approved as to form and legality by the City’s Corporation Counsel and attested to and acknowledged by the City Clerk.
7. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Agreement, subject to full written disclosure of such extension(s) (in the form of a signed Memorandum to be submitted to the Office of the City Clerk prior to entry into such agreement) to the Municipal Council by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City’s Corporation Counsel.
8. The Redeveloper shall be designated as the exclusive redeveloper of the Property and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the Property is hereby rescinded.
9. The Redeveloper shall have thirty (30) days from the date this Ordinance is certified by the Office of the City Clerk to execute the attached Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached Agreement within this thirty (30) day time period, the authorization provided by this Resolution shall be null and void, unless the Deputy Mayor/Director of the Department of Economic and Housing Development agrees in writing to extend this thirty (30) day time period.
10. The Director of the Department of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety percent (90%) of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, adopted on November 6, 1985; and ten percent (10%) of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6S&Ff, adopted on June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
11. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale and Redevelopment of Land, the Quitclaim Deed, and all such other executed agreements authorized by this Ordinance on file in the Office of the City Clerk.
12. The Redeveloper shall be required to comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, adopted on April 5, 1995; the City of Newark’s Affirmative Action Plan, 7Rbp, adopted on March 1, 1995; Federal Executive Order 11246, (as amended by Executive Orders 11375 and 12086) regarding the award of goods and services contracts; and the City of Newark Ordinance 6PSF-c, adopted on June 17, 2015, Amending Title II, Administration, Chapter 4, General Administration, Section 20, Hiring of Newark Residents by Contractors or Other Persons Doing Business with the City of Newark and Section 21, Newark Residents’ Employment Policy, by Adding Language to Address Immediate Short Term Training and Employment Opportunities and Repealing the Newark Employment Commission, a copy of which is attached to the Agreement as Exhibit C (the “First Source Ordinance”), all as may be applicable. The Redeveloper shall provide the Department of Economic and Housing Development with the required forms showing compliance with the above, and a copy of these forms shall be filed with the Office of the City Clerk. In addition, the Redeveloper has agreed to ensure that thirty percent (30%) of all contractors, subcontractors and suppliers shall be Newark-based companies.
13. The development of the Property shall commence within three (3) months and be completed within eighteen (18) months following the transfer of ownership of the Property from the City to the Redeveloper.
14. The Project to be implemented by the Redeveloper shall conform to the City of Newark Design Guidelines, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Additionally, the Redeveloper shall conduct any environmental investigation and remediation upon the Property as may be necessary. Should the Redeveloper fail to diligently pursue the redevelopment of the Property, the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Property back to the City, in accordance with the terms and conditions of the Agreement and the Deed. Failure to exercise or delay in exercising this Right of Reverter by the City of Newark shall not constitute a waiver nor shall such failure and/or delay serve as a basis for adverse possession of the Property. Any and all waivers of the City’s Right of Reverter shall be in writing.
STATEMENT
This Ordinance authorizes the Mayor of the City of Newark, and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to effectuate certain business terms and conditions related to the Agreement for the Sale and Redevelopment of Land, concerning the sale and transfer of the City’s property and may enter into any related documents which may be necessary to effectuate same, including, but not limited to, a Quitclaim Deed with a Right of Reverter clause and Declaration of Covenants and Restrictions, for the Property commonly known as 478-492 Central Avenue and identified on the Official Tax Map of the City of Newark, as Block 1830, Lot 1.01.