Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Docket No.: N/A
Claimant: City of Newark
Claimant's Attorney: Acting Corporation Counsel
Attorney's Address: 920 Broad Street, Suite 316, Newark, New Jersey 07102
Settlement Amount: $25,000.00
Funding Source: N/A
Additional Comments:
Hampton Valley Urban Renewal, LP., will make payments as set forth in the terms of the Settlement Agreement
Invitation: Corporation Counsel, April 4, 2017
body
WHEREAS, on May 20, 2015, the Newark Municipal Council adopted Ordinance 6PSF-I granting a long term tax abatement to Hampton Valley Urban Renewal, LP (“Hampton Valley”) for the rehabilitation of eighty nine (89) affordable housing units on the property located at 122-136 Elizabeth Avenue and 106-188 Elizabeth Avenue (the “Project”), all as described more fully within the tax abatement application and the financial agreement for tax abatement (the “Rehabilitation Project”); and
WHEREAS, in connection with closing out the Rehabilitation Project with the City, Hampton Valley was unable to show proof of compliance with the terms of Section 5.05 (b)(i) and c(ii) of the Financial Agreement related to Affirmative Action requirements and Local/Minority/Women Participation in Construction of the Rehabilitation Project; and
WHEREAS, pursuant to the terms of the Financial Agreement, as agreed to by the Parties, if Hampton Valley failed to comply with Section 5.05 (b)(i) and c(ii), it would be obligated to pay the City a monetary penalty in an amount as calculated in the tax abatement financial agreement, authorized pursuant to Ordinance 6PSF-I, adopted on May 20, 2015; and
WHEREAS, to avoid the need for litigation, the Mayor’s Office of Affirmative Action and Hampton Valley negotiated a settlement whereby Hampton Valley has agreed to pay the City Twenty Five Thousand Dollars and Zero Cents ($25,000.00) (“Settlement Sum”) pursuant to the terms of the attached Settlement Agreement and Release (“Settlement Agreement”); and
WHEREAS, given all of the facts and circumstances, the Acting Corporation Counsel recommends that it is in the best interest of the City to resolve the matter pursuant to the terms contained herein and to authorize him to effectuate the settlement.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and the Acting Corporation Counsel are authorized to execute the Settlement Agreement and Release between the City of Newark and Hampton Valley Urban Renewal, LP (“Hampton Valley”) for settlement of claims that Hampton Valley could not provide proof of compliance with the terms of Section 5.05 (b)(i) and c(ii) of its Amended and Restated Financial Agreement with the City.
2. The Mayor and the Acting Corporation Counsel are authorized to obtain and execute any other documents sufficient in form and content to the Acting Corporation Counsel and take whatever actions necessary to effectuate the terms of the within resolution and settlement of this matter pursuant to the terms contained in this Resolution and Settlement Agreement.
3. In exchange for the execution of the Settlement Agreement and Release, acceptable in form to the Acting Corporation Counsel and after passage of this Resolution and upon receipt by the Acting Corporation Counsel and the Director of Finance of any and all other documents deemed necessary, Hampton Valley shall pay Twenty Five Thousand Dollars and Zero Cents ($25,000.00) to The Newark Workforce Investment Board, Attention Amina Bey, Executive Director, 990 Broad Street, 2nd Floor, Newark, New Jersey 07102, pursuant to the terms of the Settlement Agreement.
4. The Director of Finance is hereby authorized to accept payments received as a result of the Settlement Agreement in accordance with the terms contained therein.
5. This resolution shall not require any expenditure of funds by the City of Newark.
6. A copy of the fully executed Settlement Agreement and any other documents authorized herein shall be filed in the Office of the City Clerk by the Corporation Counsel.
STATEMENT
This resolution authorizes the Mayor and the Acting Corporation Counsel to execute a Settlement Agreement with Hampton Valley Urban Renewal, LP, whereby Hampton Valley Urban Renewal, LP shall pay Twenty Five Thousand and Zero Cents ($25,000.00) to The Newark Workforce Investment Board, Attention Amina Bey, Executive Director, 990 Broad Street, 2nd Floor, Newark, New Jersey 07102, for settlement of claims without the need for formal litigation.