Title
Dept/ Agency: Economic and Housing Development Department
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Redevelopment Agreement
Purpose: Authorize Execution of First Amendment of the Agreement for the Sale and Redevelopment of Land Between the City of Newark and BES Homes, LLC
Entity Name: BES Homes, LLC
Entity Address: 103 Magazine Street, Newark, New Jersey 07105
Contract Amount: N/A
Funding Source:
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)
10 Brinsmaid Place/Block 2484/Lot 52/East Ward
14 Brinsmaid Place/Block 2484/lot 52.01/East Ward
body
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, by Resolution 7RDO(AS) adopted by the Municipal Council on June 15, 2005, the entire City of Newark was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, the Municipal Council of the City of Newark (the “Municipal Council”) approved the following redevelopment plans, as amended, for the five (5) wards within the City (collectively, the “Redevelopment Plans”); and
• Ordinance 6S&FA(s) 081705 Third Amendment to the North Ward Redevelopment Plan;
• Ordinance 6S&FE 092105 First Amendment to the East Ward Redevelopment Plan;
• Ordinance 6S&FC(s) 081705 Second Amendment to the West Ward Redevelopment Plan;
• Ordinance 6S&FD(s) 081705 Third Amendment to the South Ward Redevelopment Plan;
• Ordinance 6S&FE(s) 081715 First Amendment to the Central Ward Redevelopment Plan.
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 Act; and
WHEREAS, on December 18, 2023, the City's Department of Economic and Housing Development received solicitation responses from numerous respective entities (the "Proposed Developers") in response to the Solicitation outlining their intentions to acquire and develop the Property for the Purchase Price in the respective manner; and
WHEREAS, the originally proposed Project consisted of mixed income residential units with approximately the new construction of a three (3) story building, consisting of six (6) three bedroom units and two (2) two bedroom units restricted to tenants at 30% of Area Median Income ("AMI") for a period of 15 years, (the "Income Restricted Units") to be set aside for special needs population of homeless families victims of domestic violence, to be maintained as market-rate residential units; the remaining units will be maintained and deed-restricted as affordable rental units, reserved for residents with a household income at or below 80% of the area median income for Essex County ("AMI"), in accordance with the Fair Housing Act, N.J.S.A. 52:27D-301, et seq., for a period of fifteen (15) years from the issuance of the Certificate of Occupancy (the "Affordable Housing Units"), which shall be subject to "Affordability Controls" as set forth herein (the “Original Project”); and
WHEREAS, based upon the Department of Economic and Housing Development's review of the submissions 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 Initiative; and
WHEREAS, the Redeveloper has submitted a Solicitation response to the City's Department of Economic and Housing Development outlining its intention to redevelop the Property (the "Proposal"); and
WHEREAS, based upon the City's review of the Proposal and other information, the City has determined that the Redeveloper possesses the proper qualifications, financial resources and the capacity to acquire and redevelop the Property; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the Department of Economic and Housing Development has recommended that the City sell the Property to the Redeveloper for the consideration of Fifty-Five Thousand One Hundred Ten Dollars and Zero Cents ($55,110.00) ("Purchase Price"), which price, and under such terms as, the City deems to be reasonable, for the purpose of redeveloping the Property, in accordance with the Act, this Agreement, and the Redevelopment Plan; and
WHEREAS, the City and Redeveloper entered into an Agreement for the Sale and Redevelopment of Land on June 12, 2025 (the “Redevelopment Agreement”), in order to memorialize the terms and conditions of the sale and redevelopment of the Property, a copy of which is attached hereto as Exhibit A; and
WHEREAS, the City and Redeveloper now wish to enter into this First Amendment to the Redevelopment Agreement (the “First Amendment”) to revise the proposed Scope of the Project as follows: the project will consist of Affordable Income Residential units with the new construction of two (2) three (3) story buildings consisting of six (6) three-bedroom units restricted to tenants at 30% of Area Median Income (“AMI”) for a period of 15 years. The Income Restricted Units to be set aside for Special Needs Population of Homeless Families Victims of Domestic Violence to be maintained as affordable residential units. The six units will be maintained and deed restricted as affordable rental units reserved for residents with a household income at or below 30% of the area median income for Essex County (“AMI”), in accordance with the Fair Housing Act, N.J.S.A. 52:27D-301,et seq., for a period of fifteen (15) years from the issuance of the Certificate of Occupancy (the “Affordable Housing Units”), which shall be subject to “Affordability Controls” as set forth herein (the “Project”); and
WHEREAS, the City and Redeveloper desire to enter into an Amended Agreement in order to memorialize the terms and conditions of the redevelopment of the Property, in substantially the form attached hereto as Exhibit A; and
WHEREAS, the Amended Agreement shall supersede any previous agreement(s) or conditions related to the redevelopment of the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, hereby: authorize the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development to enter into the First Amendment of the Agreement for the Sale and Redevelopment of Land by and Between the City of Newark and BES Homes, LLC (the “Amended Agreement), in substantially the form attached hereto as Exhibit A.
2. 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 Amended Agreement and may enter into any related documents which may be necessary in order to effectuate the Amended Agreement.
3. The executed Amended Agreement shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of Department of Economic and Housing Development.
4. The Deputy Mayor/Director of Department of Economic and Housing Development is authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Redevelopment Agreement and Amended 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 adoption) to the Municipal Council of the City of Newark by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City of Newark’s Corporation Counsel.
5. The Redeveloper shall have thirty (30) days from the date this resolution is certified by the Office of the City Clerk to execute the attached Amended Agreement for the Sale and Redevelopment of Land and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Amended Agreement within this thirty (30) day time period, the authorization provided by this resolution shall be null and void, unless the Acting Deputy Mayor/Director of Department of Economic and Housing Development agrees in writing to extend this thirty (30) day period.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into an amended redevelopment agreement with BES Homes, LLC, with an address of 103 Magazine Street, Newark, New Jersey 07105, for the redevelopment of the property identified on the City of Newark Tax Map Block 2484, Lots 52 and 52.01.