Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: An Agreement to Subordinate the City of Newark’s Reverter Rights by entering into a First Amendment to the Agreement for Sale and Redevelopment of Land and a Subordination Agreement in order to permit the Redeveloper to obtain financing, necessary for the rehabilitation of property to build a three-family house for sale
Entity Name: Wiosna, Limited Liability Company
Entity Address: 65 Chapin Street, Unit 24, Pine Brook, New Jersey 07058
Sale Amount: $23,625.00
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: N/A
Appraised Amount: N/A
Contract Period: Not Applicable
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)
274 Chadwick Avenue/Block 2711/Lot 58/South Ward
Additional Information:
Resolution 7R2-a (s) adopted on March 10, 2020, designating Wiosna, Limited Liability Company as the Redeveloper and authorized the Agreement for the Sale and Redevelopment of Land
body
WHEREAS, pursuant to Resolution 7R2-a (s) adopted on March 10, 2020, the Newark Municipal Council (“Municipal Council”) authorized the Mayor 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 Land (the “Agreement”) with Wiosna, Limited Liability Company, 65 Chapin Street, Unit 24, Pine Brook, New Jersey 07058 (“Redeveloper”), for the sale of City owned real property located and identified on the official tax map of the City of Newark (“City”) as Block 2711, Lot 58, and commonly known as 274 Chadwick Avenue, Newark, New Jersey (“Property”), for a purchase price of Twenty-Three Thousand Six Hundred Twenty-Five Dollars and Zero Cents ($23,625.00), for the redevelopment of the Property into a three-family house for sale (“Project”); and
WHEREAS, the sale and Agreement were authorized pursuant to N.J.S.A. 40A:12A-8(g) and the South Ward Redevelopment Plan; and
WHEREAS, such sale was authorized pursuant to N.J.S.A. 40A:12-13, which requires that such conveyance be subject to the condition that title to the Property revert back to the City in the event of a Default under Section VI., Event of Default, Termination of the Agreement and Right of Reverter (mislabeled Section V.) of the Agreement and Section d. of the Deed (the “Reverter Right”); and
WHEREAS, Redeveloper has represented that it has secured financing from First Platinum Capital Corp. (“Grantor”) in an amount not to exceed $490,000.00 (the “Grant”), to develop and complete the Project, which Grant will be evidenced by a Grant Agreement and will be secured by a Mortgage on the Property (“Mortgage”) under the terms of the Grant Agreement; and
WHEREAS, as a condition of the above Grant, the Grantor has requested that the City subordinate the Reverter Rights to the Grantor with respect to the Grant Agreement and Mortgage; and
WHEREAS, the Agreement states that the Reverter Right may be subordinated by the City subject to formal approval by the Municipal Council and pursuant to N.J.S.A. 40:60-51.2, which authorizes a municipality to waive, release, modify or subordinate any terms, covenants, conditions, limitations or reverters imposed in sales and conveyances of lands as to the erection, alteration or demolition of buildings or any other use to be made of land heretofore imposed by said municipality to accomplish the purposes for which such lands were sold and conveyed either at public or private sale including those set forth pursuant to Section 21 of P.L.1971, c. 199 (C.40A:12-21), but only after public hearing held before such Governing Body, of the holding of which notice describing the lands in question, and the terms, covenants, conditions, limitations or reverters to be waived, released, modified or subordinated, and, if to be modified or subordinated, describing the manner in which the same shall be modified or subordinated, shall first have been given by advertisement published once each week for two weeks in a newspaper published in said municipality or, if no newspaper be published therein, then in a newspaper circulating in such municipality, provided, however, that the power herein granted shall not be exercised to impair any vested or contractual rights of third parties; and
WHEREAS, the Department of Economic and Housing Development caused a notice to be advertised including the requirements established in N.J.S.A. 40:60-51.2, in the Star Ledger on February 10, 2025 and February 17, 2025, which complies with the notice requirement of once each week for two weeks; and
WHEREAS, the Municipal Council desires to subordinate the City’s Reverter Right contained in the Agreement and the Deed by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and Subordination Agreement so as to accomplish the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute a Subordination Agreement with and in favor of First Platinum Capital Corp. (“FPCC”)(“Grantor”), in the form attached hereto or such other forms reasonably acceptable to the parties, related to the Property located at 274 Chadwick Avenue, Newark, New Jersey, as shown on the official tax map of the City of Newark as Block 2711, Lot 58 (the “Property”), which is located in the South Ward, to permit the redevelopment of the Property as construction of a three-family house for sale (“Project”) by Wiosna, Limited Liability Company, 65 Chapin Street, Unit 24, Pine Brook, New Jersey 07058 (“Redeveloper”), which is authorized pursuant to Resolution 7R2-a(s) adopted on March 10, 2020.
2. The Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into a First Amendment to Agreement for the Sale and Redevelopment of Land with the Redeveloper, in the form attached hereto, related to the Property for the Project.
3. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land, authorized by and entered into pursuant to Resolution 7R2-a (s) adopted on March 10, 2020, shall remain in full force and effect.
4. Notice in accordance with N.J.S.A. 40:60-51.2 of the Subordination of the City’s reverter rights to the Property to the Grantor’s Mortgage has been duly given by publication as required by law and holding of a public hearing on said resolution at a Meeting of the Municipal Council on February 25, 2025, in the Council Chamber located at City Hall, 920 Mayor Kenneth A. Gibson Boulevard, Newark, New Jersey.
5. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a filed copy of the fully executed Subordination Agreement and the First Amendment to Agreement for the Sale and Redevelopment of Land with the Office of City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development to subordinate the City’s Reverter Rights through the execution of a Subordination Agreement and First Amendment to Agreement for Sale and Redevelopment of Land, to enable the Redeveloper to obtain financing necessary to build a three-family house for sale located at 274 Chadwick Avenue, Newark, New Jersey, as shown on the official tax map of the City as Block 2711, Lot 58 (South Ward).