Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Authorizing the First Amendment to the Agreement for the Sale and Redevelopment of Land with ABB Properties, LLC to amend the approved redevelopment obligations applicable to the Property, including the project description and occupancy and income restrictions governing the residential units.
Entity Name: ABB Properties, LLC
Entity Address:1416 Morris Avenue, Suite 209, Union, New Jersey 07083
Sale Amount: $48,400.00
Cost Basis: ( ) $ PSF (X) Negotiated ( ) N/A ( ) Other.
Contract Period: Unchanged
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
(X) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
209-211 Clinton Place/Block 3046.01/Lot 18/South Ward
Additional Information:
Resolution 7R2-b adopted on March 6, 2024, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes the First Amendment to the Agreement for the Sale and Redevelopment of Land to amend the approved redevelopment obligations, including the project description, occupancy and income restrictions applicable to the residential units, execution and recording of a deed restriction, and related enforcement provisions.
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WHEREAS, on March 6, 2024, the Newark Municipal Council adopted Resolution 7R2-b (the “Original Resolution”), which authorized the Mayor and/or his designee the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land (“Agreement”) with ABB Properties, LLC (the “Redeveloper”), for the sale and redevelopment of the City-owned property located at 209-211 Clinton Place, also known as Block 3046.01, Lot 18 (South Ward) (the “Property”), Newark, New Jersey, pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., and in accordance with the Third Amendment to the South Ward Redevelopment Plan, adopted by Ordinance 6S&Fd(S) on August 17, 2005;
WHEREAS, the Original Resolution approved construction of a new two-family residential dwelling with affordable rental units upon the Property;
WHEREAS, the City and Redeveloper have determined that modifying the approved redevelopment obligations to provide for one (1) owner-occupied dwelling unit to be conveyed to a household whose income does not exceed one hundred twenty percent (120%) of the Area Median Income (“AMI”), and one (1) dwelling unit to remain restricted to occupancy by a household whose income does not exceed eighty percent (80%) of the AMI, as published annually by the United States Department of Housing and Urban Development, will continue to advance the redevelopment objectives of the Local Redevelopment and Housing Law, and the Third Amendment to the South Ward Redevelopment Plan;
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, and to approve the revised redevelopment obligations through a First Amendment to the Agreement for the Sale and Redevelopment of Land, including provisions requiring execution and recording of a deed restriction implementing the owner-occupancy and income restrictions applicable to the Property and incorporating such restrictions as enforceable obligations under the Agreement, in a form substantially consistent with the attached hereto as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-b, adopted on March 6, 2024, and the Agreement for the Sale and Redevelopment of Land are hereby amended to:
• revise the approved Scope of the Project to provide for the construction of a new two-family residential dwelling consisting of (a) one (1) owner-occupied dwelling unit to be conveyed to and occupied by a household whose income does not exceed one hundred twenty percent (120%) of the Area Median Income (“AMI”) and (b) one (1) dwelling unit restricted to occupancy by a household whose income does not exceed eighty percent (80%) of AMI;
• require execution and recording of a deed restriction implementing the owner-occupancy and income restrictions applicable to the Property;
• incorporate such owner-occupancy and income restrictions into the Redevelopment Agreement as enforceable redevelopment obligations; and
• provide that failure to comply with such owner-occupancy and income restrictions shall constitute an Event of Default under the Redevelopment Agreement.
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, is hereby authorized to enter into and execute the First Amendment to the Agreement for the Sale and Redevelopment of Land in substantially the form attached hereto as Exhibit A, with ABB Properties, LLC, and execute such additional documents as may be necessary to implement the First Amendment.
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
4. The executed First Amendment and all related documents shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
5. The Deputy Mayor/Director of the 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 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.
6. 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 First Amendment and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached First 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 period.
STATEMENT
This Resolution authorizes the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, to enter into a First Amendment to the Agreement for the Sale and Redevelopment of Land with ABB Properties, LLC, to amend the approved redevelopment obligations applicable to 209-211 Clinton Place by revising the project description, establishing owner-occupancy and income restrictions for the residential units, requiring execution and recording of a deed restriction implementing those restrictions, and incorporating such requirements into the Redevelopment Agreement as enforceable redevelopment obligations.