Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment, Assignment and Assumption to the Agreement for the Sale and Redevelopment of Land to Summit St. Development Group, LLC
Entity Name: Summit St. Development Group, LLC
Entity Address: 211 Warren Street, Newark, New Jersey 07103
Sale Amount: $10,459.40
Cost Basis: (X) $7.00 PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: $32,200.00
Appraised Amount: N/A
Contract Period:
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)
110 James Street/Block 2828/ Lot 1/Central Ward
Additional Information:
Resolution 7R2-a adopted on January 21, 2021, designating Mission Realestate Projects, LLC as the redeveloper and authorizing an Agreement for the Sale and Redevelopment of Land.
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WHEREAS, pursuant to Resolution 7R2-a adopted on January 21, 2021 (the “Original Resolution”), the Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development were authorized to execute an Agreement for the Sale and Redevelopment of Land (“Agreement”)for the sale and redevelopment of certain City-owned property located at 110 James Street, Newark, New Jersey, and designated on the Official Tax Map of the City of Newark as Block 2828, Lot 1 (the “Property”), to Mission Realestate Projects, LLC (the “Assignor”), in the amount of Ten Thousand Four Hundred Fifty Nine Dollars and Forty Cents ($10,459.40), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., as amended and supplemented, for the development of a fifteen (15)-unit multifamily building intended for off-campus student housing through the assemblage of the Property with the adjacent properties located at 8 and 10 Summit Street in the Central Ward (the “Original Project”); and
WHEREAS, although the Assignor has diligently pursued acquisition and redevelopment of the Property pursuant to the Agreement, the Assignor has been unable to complete the transaction due to the failure to secure certain funding commitments necessary for acquisition and development; and
WHEREAS, in order to advance redevelopment of the Property, the Assignor has partnered with Summit St. Development Group, LLC, 211 Warren Street, Newark, New Jersey 07103 (the “Assignee”); and
WHEREAS, by correspondence dated May 9, 2023, March 28, 2024, and July 29, 2025, the Assignor requested that the City approve: (i) an amendment to the redevelopment plan for the Property to permit construction of a five-story multifamily condominium building containing fourteen (14) residential units (the “Amended Project”); and (ii) the assignment and transfer of the Agreement to the Assignee; and
WHEREAS, the Assignee has requested additional time to complete the development and construction of the Amended Project; and
WHEREAS, the Assignor desires to assign, and the Assignee desires to assume, all rights, obligations, and responsibilities of the Assignor under the Agreement, including the acquisition and redevelopment of the Property in accordance with the Amended Project; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development has reviewed the proposed Amended Project and the associated construction schedule, has determined that the Amended Project remains consistent with the redevelopment objectives of the City, and recommends approval of a First Amendment, Assignment and Assumption of Redevelopment Agreement (the “Amended Agreement”); and
WHEREAS, the Municipal Council of the City of Newark finds that the Amended Project will further the redevelopment goals of the City and promote the public health, safety, welfare, and economic vitality of the City and its residents; and
WHEREAS, the City consents to the proposed transfer of the Agreement to the Assignee whereby the Assignee assumes the rights, obligations and responsibilities of the Assignor as set forth under the Agreement; and
WHEREAS, based upon the City's review of the Amended Project and other information, the City has determined that the Assignee possesses the proper qualifications, financial resources and the capacity to acquire and redevelop the Property; and
WHEREAS, the City and the Assignee desire to amend the Original Resolution and the Agreement to reflect the Amended Project and memorialize the assignment, assumption, sale, and redevelopment of the Property pursuant to the terms and conditions set forth in the Amended Agreement attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The recitals set forth above are hereby incorporated herein as though fully set forth at length.
2. Resolution 7R2-a, adopted by the Newark Municipal Council on January 21, 2021 (“Original Resolution”), and the Agreement for the Sale and Redevelopment of Land (“Agreement”) authorized thereby, are hereby amended to change the approved redevelopment project from the construction of a fifteen (15)-unit multifamily building for off-campus student housing to the construction of a five (5)-story multifamily condominium building containing fourteen (14) residential units.
3. The Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to execute a First Amendment, Assignment and Assumption of Redevelopment Agreement (“Amended Agreement”), approving the transfer and assignment of the Agreement and all redevelopment rights from Mission Realestate Projects, LLC to Summit St. Development Group, LLC, substantially in the form attached hereto as Exhibit A, or in such form as may be acceptable to the Parties and approved by the City’s Corporation Counsel, with Summit St. Development Group, LLC, for the redevelopment and conveyance of the property located at 110 James Street, Newark, New Jersey and identified on the Official Tax Map of the City of Newark as lock 2828, Lot 1, in the Central Ward (“Property”) pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., as amended and supplemented.
4. Except as expressly modified herein, all terms and conditions of the Original Resolution and the Agreement authorized thereby remain in full force and effect.
5. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to negotiate and execute such ancillary agreements, certifications, amendments, instruments, and documents as may be necessary or appropriate to effectuate the purposes of the Amended Agreement, subject to the approval of the City’s Corporation Counsel.
6. Upon execution, the Amended Agreement and the Quitclaim Deed shall be filed with the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
7. The Deputy Mayor/Director of the Department of Economic and Housing Development is authorized to grant up to two (2) extensions of any performance deadline contained in the Amended Agreement, each extension not to exceed six (6) months in duration, provided that: (a) the extension is approved by the City’s Corporation Counsel; and (b) written notice of such extension, in the form of a memorandum executed by the Deputy Mayor/Director, is filed with the Office of the City Clerk and provided to the Municipal Council.
8. The Parties shall have thirty (30) days from the date on which this Resolution is certified by the Office of the City Clerk to execute and return the Amended Agreement to the Department of Economic and Housing Development. Failure to execute and return the Amended Agreement within such period shall render the authorization granted herein null and void, unless the Deputy Mayor/Director of the Department of Economic and Housing Development extends such period in writing.
9. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute and deliver a Quitclaim Deed conveying the Property to Summit St. Development Group, LLC. The Quitclaim Deed shall be subject to review and approval as to form and legality by the City’s Corporation Counsel and shall be attested to and acknowledged by the City Clerk.
STATEMENT
This Resolution authorizes the Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to execute a First Amendment, Assignment and Assumption of Redevelopment Agreement with Summit St. Development Group, LLC, 211 Warren Street, Newark, New Jersey 07103, concerning the redevelopment and conveyance of City-owned property located at 110 James Street, Newark, New Jersey, and designated as Block 2828, Lot 1 on the Official Tax Map of the City of Newark, and to execute such related documents, including a Quitclaim Deed, as may be necessary to effectuate the transaction.