Title
Dept/ Agency: Economic and Housing Development Department
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Redevelopment Agreement
Purpose: Authorize Execution of an Agreement for the Sale and Redevelopment of Land Between the City of Newark and The New Jersey Performing Arts Center Corporation
Entity Name: The New Jersey Performing Arts Center Corporation
Entity Address: 1 Center Street, Newark New Jersey 07102
Contract Amount: $10,000,000.00
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)
614-706 Mayor Kenneth A. Gibson Boulevard/Block 124/Lot 1
Central Ward
Additional Information:
body
WHEREAS, New Jersey Performing Arts Center Corporation, a New Jersey non-profit corporation (the “NJPAC”) currently leases the enclosed, subterranean parking facility known as the Military Park Garage (the “Garage”) located as part of certain real property designated as Block 124, Lot 1, as shown on the official tax map of the City of Newark (the “City”) from the Newark Parking Authority through a sublease with the City, the owner of the Garage; and
WHEREAS, the Municipal Council previously adopted Resolution 7Rdo(AS) on June 15, 2005, designating the entire City as an “area in need of rehabilitation” under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq.; and
WHEREAS, NJPAC and/or its affiliate(s) have undertaken redevelopment projects in the areas adjacent to the Garage (the “Projects”) and the availability of parking within the Garage is necessary for the continued success of the Projects; and
WHEREAS, the purchase of the Garage (the “Acquisition”) by NJPAC or its affiliate (collectively, “Redeveloper”) from the City will allow the NJPAC to provide adequate parking for the Projects in perpetuity; and
WHEREAS, to effectuate the Acquisition, the Military Park Condominium will be created to consist of two (2) units, one containing the Garage (the “Garage Unit”) and one containing Military Park (the “Park Unit”);
WHEREAS, it is in the best interest of the City to retain the aboveground Park Unit; and
WHEREAS, it is in the best interests of the City that the Projects continue to have adequate parking;
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development recommends that the City sell the Garage to the Redeveloper who is willing to purchase the Garage from the City for the consideration of Ten Million Dollars and Zero Cents ($10,000,000) (the “Purchase Price”), for the purpose of rehabilitating said Garage in accordance with the requirements of N.J.S.A. 40A:12A-8(g);
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City is proceeding with the rehabilitation of the area and it is in the best interest of the City to convey the Garage at such price and upon such terms as it deems reasonable and said conveyance is made in conjunction with the applicable Redevelopment Plan, as amended; and
WHEREAS, the purpose of this resolution is to approve the sale and redevelopment of that portion of City owned property located at Block 124, Lot 1 in the City of Newark comprising the Garage, for a Purchase Price of $10,000,000.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK THAT:
1. That the Mayor and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development (each, an “Authorized Signatory”) are hereby authorized to enter into and execute the Master Deed for Military Park Condominium (“Master Deed”) attached hereto, for the creation of the Military Park Condominium to consist of two (2) units, one containing the Garage (the “Garage Unit”) and one containing the above ground Military Park (the “Park Unit”); and be it further
2. That the Redeveloper shall be designated as the exclusive redeveloper of the Garage Unit and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the Garage Unit is hereby rescinded; and be it further
3. That each Authorized Signatory be, and hereby is, authorized to enter into and execute the Agreement for the Sale and Redevelopment of the Military Park Garage (“Redevelopment Agreement”) attached hereto with the Redeveloper for the private sale and rehabilitation of the Garage Unit for the Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g) and the terms and conditions of the Redevelopment Agreement; and be it further
4. That the form, terms and provisions of the Redevelopment Agreement be and hereby are, approved, ratified and confirmed in all respects; and be it further
5. That each Authorized Signatory is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Garage Unit with the form and legality of such Quitclaim Deed being approved by the City’s Corporation Counsel (“Corporation Counsel”) and attested to and acknowledged by the City Clerk; and be it further
6. That each Authorized Signatory is hereby authorized to effectuate certain business terms and conditions related to the Redevelopment Agreement annexed hereto and may enter into access and right of entry agreements and any related documents which may be necessary in order to effectuate the sale of the Garage Unit and the terms and conditions of the Redevelopment Agreement, all in forms subject to the approval of the Corporation Counsel.
7. That 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 Redevelopment Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached Redevelopment Agreement within this thirty (30) day time period, then 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.
8. That the each Authorized Signatory be, and hereby is, authorized, empowered, and directed, in the name and on behalf of the City, to execute and enter into the Redevelopment Agreement, the Quitclaim Deed and any other such document necessary to effectuate the transactions (the “Transaction Documents”) necessary for the sale of the Garage Unit to the Redeveloper and its redevelopment with such changes thereto as the Business Administrator and Corporation Counsel shall deem necessary, desirable or appropriate or otherwise in the best interests of the city; and be it further
9. That the Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of each Transaction Document on file in the Office of the City Clerk and be it further
10. That the execution and delivery of the Transaction Documents by the Authorized Signatories and the taking of any action in connection with the foregoing resolutions establish conclusively the City’s authority therefore and the approval by the City of the Transaction Documents so executed and delivered and the actions so taken; and be it further
11. That the Authorized Signatories be, and hereby are, authorized, empowered, and directed, in the name and on behalf of the City, to make all payments and incur all expenses in connection with any transaction contemplated by these resolutions as he shall deem to be necessary, desirable, or appropriate; and be it further
12. That in addition to the specific authorizations conferred by the foregoing resolutions the Deputy Mayor/Director of the Department of Economic and Housing Development. the Business Administrator and Corporation Counsel, be, and hereby are authorized, empowered, and directed to do or cause to be done all further acts and things (including the execution of all such further documents, papers, and instruments) as they may deem necessary, desirable, or appropriate in order to carry into effect the purposes and intent of the foregoing resolutions, then the same shall be deemed to have been and hereby are adopted, and each is authorized to certify the adoption of all such resolutions as though such resolutions are part of these resolutions; and be it further
13. That any and all actions previously taken in good faith by the City and any of its officers or employees in connection with and in anticipation of the foregoing resolutions be and the same are hereby ratified and confirmed in all respects.
STATEMENT
This Resolution authorizes the Mayor and/or his designee, and 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 that portion of City owned property located at Block 124, Lot 1 in the City of Newark comprising the Military Park Garage, for a Purchase Price of $10,000,000 (the “Redevelopment Agreement”) to the New Jersey Performing Arts Center Corporation or its affiliate, in accordance with the requirements of N.J.S.A. 40A:12A-8(g) and the terms and conditions of the attached Redevelopment Agreement