Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Assignment of Contract Agreement
Purpose: Consenting to the assignment of Financial Agreement from Irvine Turner Apartments Urban Renewal, LLC to New Irvine Turner Apartments Urban Renewal, LLC for an affordable housing project located at 385-391, 393-395, 396-402, 397-403, and 416-432 Irvine Turner Boulevard, Newark, New Jersey 07108 and identified on the Official Tax Map of the City of Newark, as Block 2675, Lots 40, 41, 44; Block 2678, Lot 16; and Block 2693, Lot 7 (South Ward).
Entity Name: New Irvine Turner Apartments Urban Renewal, LLC
Entity Address: c/o The NHP Foundation, 122 E. 42nd Street, Suite 4900, New York, New York 10168
Contract Amount: N/A
Funding Source: N/A
Contract Period: N/A
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
(Address/ Block/Lot/ Ward )
397-403 Irvine Turner Boulevard/Block 2675/ Lot 40/South Ward
393-395 Irvine Turner Boulevard/Block 2675/Lot 41/South Ward
385-391 Irvine Turner Boulevard/Block 2675/Lot 44/South Ward
396-402 Irvine Turner Boulevard/Block 2678/Lot 16/South Ward
416-432 Irvine Turner Boulevard/Block 2693/Lot 7/South Ward
Additional Information:
body
WHEREAS, on March 20, 2019, the Municipal Council adopted Ordinance 6PSF-b, granting a long term tax abatement to Assignor pursuant to the Long Term Tax Exemption Law as amended and supplemented, N.J.S.A. 40A:20-1, et seq. (the “Long Term Tax Exemption Law”), for a thirty (30) year term for a project to rehabilitate four (4) buildings containing ninety-four (94) affordable housing units, including, without limitation, installation of new kitchens, baths, radiators, boilers, hot water heaters, elevators and construction of a new community building on one of the existing parking lots, located at 385-391, 393-395, 396-402, 397-403, and 416-432 Irvine Turner Boulevard, Newark, New Jersey 07108 and identified on the Official Tax map of the City of Newark as Block 2675, Lots 40, 41, and 44, Block 2678, Lot 16 and Block 2693, Lot 7 (the “Project”); and
WHEREAS, on April 9, 2019, the City entered into a Financial Agreement with Irvine Turner Apartments Urban Renewal, LLC (the “Assignor”) governing the tax abatement for the Project (the “Financial Agreement”); and
WHEREAS, as set forth in Section 3.01 of the Financial Agreement, the Project shall be exempt from taxation for thirty (30) years from the date of the Financial Agreement; and
WHEREAS, the Assignor has entered into a contract with New Irvine Turner Apartments Urban Renewal, LLC (the “Assignee”) to transfer its interest in the Project; and
WHEREAS, as set forth in Article IX of the Financial Agreement, the City must consent to the transfer of the Project and the assignment of the Financial Agreement; and
WHEREAS, the Assignee has filed an application with the City (the “Application”) seeking City consent to the transfer of the Project and the Financial Agreement from the Assignor to the Assignee; and
WHEREAS, the City has reviewed Application and has determined that the Assignee has the capacity and experience to own and operate the Project and to assume all of the rights and obligations of the Assignor under the Financial Agreement; and
WHEREAS, the Municipal Council wishes to adopt this resolution in order to reflect the City’s consent to the transfer of the Project and the Financial Agreement to the Assignee and to authorize the Mayor to enter into and execute, on behalf of the City, an Assignment and Assumption Agreement between the City, Assignor and Assignee.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City hereby consents to: (i) the conveyance of the Project by Assignor to Assignee; and (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee.
2. The Municipal Council hereby authorizes the Mayor to enter into and execute, on behalf of the City, the Assignment and Assumption Agreement of Financial Agreement amongst the City, the Assignor and the Assignee (the “Assignment Agreement”) in the form attached hereto.
3. The long term tax abatement for the Project will expire in accordance with the terms of the Financial Agreement and will remain in effect until such time provided that the Assignee complies with all applicable State statutes, City Ordinances and Resolutions and terms of the Assignment Agreement and Financial Agreement. This Resolution will not extend the period of the tax abatement beyond the date of expiration.
4. The Assignee shall pay all outstanding amounts due to the City, including without limitation, all water and sewer charges and all other amounts due under the Financial Agreement, within thirty (30) days of the adoption of this resolution.
5. The Assignment Agreement, once fully executed, shall be filed by the Deputy Mayor/Director of the Department of Economic and Housing Development with the Office of the City Clerk.
6. This resolution shall take effect immediately.
STATEMENT
This resolution memorializes the City’s consent to: (i) the transfer of a project containing ninety-four (94) affordable housing units located at 385-391, 393-395, 396-402, 397-403, and 416-432 Irvine Turner Boulevard, Newark, New Jersey 07108 and identified on the Official Tax Map of the City of Newark as Block 2675, Lots 40, 41, and 44, Block 2678, Lot 16 and Block 2693, Lot by Irvine Turner Apartments Urban Renewal, LLC to New Irvine Turner Apartments Urban Renewal, LLC; and to (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee. This resolution also authorizes the Mayor to enter into and execute, on behalf of the City, an Assignment and Assumption Agreement with the Assignor and the Assignee.