Title
Dept./ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Estoppel Certificate
Purpose: Issuance of Estoppel Certificate certifying the status of the Financial Agreement.
Entity Name: Broad Street Urban Renewal, LLC
Entity Address: c/o Russo Development, 570 Commerce Boulevard, Carlstadt, New Jersey 07072
Sale Amount: $0.00
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: $0.00
Appraised Amount: $0.00
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)
349-377 Broad Street/Block 451/Lot 2/Central Ward
379-397 Broad Street/Block 50/Lot 2/Central Ward
Additional Information:
Ordinance 6PSF-v(S), adopted on August 19, 2021, authorized the Financial Agreement.
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WHEREAS, pursuant to Ordinance 6PSF-v(S) adopted on August 19, 2021, the Municipal Council granted a thirty (30) year tax abatement to Broad Street Urban Renewal, LLC, c/o Russo Development, 570 Commerce Boulevard, Carlstadt, New Jersey 07072, under the provisions of the Long Term Tax Exemption Law as amended and supplemented, N.J.S.A. 40A:20-1, et seq. (the "Long Term Tax Exemption Law"), for a project to construct two (2) new five-story buildings consisting of approximately (269) market rate residential rental units, (30) one-bedroom affordable housing units restricted to tenants with a gross household income equal to no more than eighty percent (80%) of the median gross household income for households of the same size within the housing region and associated parking, located at 349-377 Broad Street and 379-397 Broad Street, Newark, New Jersey 07104 and identified on the Official Tax Map of the City of Newark, as Block 451, Lot 2 and Block 50, Lot 2 (the “Project”); and
WHEREAS, on or about November 10, 2021, the City of Newark and Broad Street Urban Renewal, LLC executed a Financial Agreement setting forth the terms and conditions of the tax abatement, a copy of which is attached hereto as Exhibit A; and
WHEREAS, the Broad Street Urban Renewal, LLC is in the process of refinancing its loan for the Project (the “Refinance Loan”) with Thrivent Financial for Lutherans, 901 Marquette Avenue, Suite 2500, Minneapolis, Minnesota 55402 (the “Refinance Lender”); and
WHEREAS, as a condition of the above Refinance Loan, the Refinance Lender has requested that the City issue an Estoppel Certificate certifying the status of the Financial Agreement, a copy of which is attached hereto as Exhibit B; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development determined that the Project is in the best interest of the City and recommends that the City execute and deliver the Estoppel Certificate so that the Project may be completed.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, is hereby authorized, empowered and directed to execute the Estoppel Certificate, in the form attached hereto as Exhibit B.
2. The Municipal Council hereby ratifies its authorization to execute the Estoppel Certificate from August 12, 2024, through the date of adoption of this authorizing Resolution.
3. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place filed copies of the fully executed Estoppel Certificate with the Office of the City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, to execute and deliver an Estoppel Certificate to enable the Broad Street Urban Renewal, LLC, c/o Russo Development, 570 Commerce Boulevard, Carlstadt, New Jersey 07072, to refinance its loan for the housing Project located at 349-377 Broad Street and 379-397 Broad Street, Newark, New Jersey 07104 and identified on the Official Tax Map of the City of Newark, as Block 451, Lot 2 and Block 50, Lot 2 (Central Ward).