Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to the Agreement for the Sale and Redevelopment of Land to 512-520 South 19th Street Associates, LLC to amend the Scope of the Project, Sale Price and Property Addresses
Entity Name: 512-520 South 19th Street Associates, LLC
Entity Address: 290 Ferry Street, New Jersey 07105
Sale Amount: $90,000.00
Cost Basis: (X) $6.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $174,800.00
Appraised Amount: N/A
Contract Period: To commence within three (3) months and be completed within eighteen (18) months from the transfer of ownership by the City
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)
522 South 19th Street/Block 336/Lot 1.01/West Ward
520 South 19th Street/Block 336/Lot 1.02/West Ward
518 South 19th Street/Block 336/Lot 1.03/West Ward
516 South 19th Street/Block 336/Lot 1.04/West Ward
514 South 19th Street/Block 336/Lot 1.05/West Ward
512 South 19th Street/Block 336/Lot 1.06/West Ward
Additional Information:
Resolution 7R2-h (s), adopted on August 19, 2021, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes a First Amendment to the Agreement for the Sale and Redevelopment of Land to amend the Scope of the Project, Sale Price, and correct the Property Addresses.
body
WHEREAS, on August 19, 2021, the Newark Municipal Council adopted Resolution 7R2-h (s) (the “Original Resolution”), which authorized 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 Land (“Agreement”), for the sale of the following City-owned property (the “Properties”) to 512-520 South 19th Street Associates, LLC, 290 Ferry Street, Newark, New Jersey 07105 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the West Ward, no longer needed for public use, in accordance with the Second Amendment to the West Ward Redevelopment Plan, adopted by Ordinance 6S&Fc(S) on August 17, 2005, as amended, which governs the redevelopment of City-owned properties located within the West Ward, in the amount of Ninety Thousand Six Hundred Fifty-Four Dollars and Zero Cents ($90,654.00) with the cost basis of $6.00 per square foot (“Cost Basis”), to redevelop the Property into Six (6) three family residential homes (“Scope of Project”):
ADDRESS BLOCK LOT SIZE SQ. FEET
|
512-520 South 19th Street 522 South 19th Street |
336 336 |
1 49 |
31.3X100 |
11,979 3,130 |
Total Square Footage: 15,109
Total Purchase Price: $90,654.00 ($6.00 per sq. ft.); and
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Properties, pursuant to the Agreement and commence the redevelopment of the Properties, the Properties have not been transferred to Redeveloper due to pending approval for a major subdivision of Properties from the Newark Central Planning Board; and
WHEREAS, the Newark Central Planning Board approved the Redeveloper’s request for a major subdivision of the Properties from two (2) lots to six (6) lots on September 11, 2023, attached hereto as Exhibit B; and
WHEREAS, the Redeveloper is requesting an amendment of the Scope of Project in the Agreement to the construction of six (6) two-family homes (“Amended Project”); and
WHEREAS, due to the subdivision approval by the Newark Central Planning Board, the Properties will now appear as follows:
522 South 19th Street/Block 336/Lot 1.01/West Ward
520 South 19th Street/Block 336/Lot 1.02/West Ward
518 South 19th Street/Block 336/Lot 1.03/West Ward
516 South 19th Street/Block 336/Lot 1.04/West Ward
514 South 19th Street/Block 336/Lot 1.05/West Ward
512 South 19th Street/Block 336/Lot 1.06/West Ward
(“Amended Property Addresses”); and
WHEREAS, due to the subdivision approval by the Newark Central Planning Board, the Square Footage of the Properties is now 15,000 and pursuant to the Cost Basis, the Sale Price is now $90,000.00 (“Amended Sale Price”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Project, the Amended Property Addresses, and Amended Sale Price, and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Project, as that term is defined herein, is in the vital and best interests of the City of Newark (“City”) and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution and enter into the Amended Agreement in order to memorialize the terms and conditions of the sale and redevelopment of the Properties, to include the Amended Project, Amended Property Addresses and Amended Sale Price, in a form substantially consistent to 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 Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute the First Amendment to the Agreement for the Sale and Redevelopment of Land (“Amended Agreement”), in the form attached hereto as Exhibit A, with 512-520 South 19th Street Associates, LLC, 290 Ferry Street, Newark, New Jersey 07105 (the “Redeveloper), for the private sale and rehabilitation of the following Properties, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A;12A-8(g), the terms and conditions of the attached Amended Agreement, and the West Ward Redevelopment Plan, as amended, to amend the Project Scope to construction of six (6) two-family homes (“Amended Project”), Sale Price, and Property Addresses pursuant to the Major Subdivision approved by the Newark Central Planning Board:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
522 South 19th Street West 336 1.01 2500SF 2,500
520 South 19th Street West 336 1.02 2500SF 2,500
518 South 19th Street West 336 1.03 2500SF 2,500
516 South 19th Street West 336 1.04 2500SF 2,500
514 South 19th Street West 336 1.05 2500SF 2,500
512 South 19th Street West 336 1.06 2500 SF 2,500
Total Square Footage: 15,000
Total Purchase Price: $90,000.00 ($6.00.00 per sq. ft.).
2. All other terms and conditions of Agreement for the Sale and Redevelopment of Land (“Original Agreement”), authorized pursuant to Resolution 7R2-h (s) adopted by the Newark Municipal Council on August 19, 2021 (“Original Resolution”) shall remain in full force and effect.
3. 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.
4. The executed Amended Agreement 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 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.
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 Amended Agreement 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 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, and the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a First Amendment to the Agreement for the Sale and Redevelopment of Land with 512-520 South 19th Street Associates, LLC, 290 Ferry Street, Newark, New Jersey 07105 to amend the Property Addresses, Scope of Project and Sale Price.