Title
AN ORDINANCE AUTHORIZING THE MAYOR OF THE CITY OF NEWARK, AND/OR HIS DESIGNEE, THE DEPUTY MAYOR/DIRECTOR OF THE DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT TO ENTER INTO AND EXECUTE AN AGREEMENT WITH BY GOMES, LLC FOR THE SALE AND REDEVELOPMENT OF CITY PROPERTY COMMONLY KNOWN AS, 57 NEWARK STREET, 59 NEWARK STREET, 61-61 ½ NEWARK STREET, 63 NEWARK STREET, 65 NEWARK STREET, 67 NEWARK STREET, 69 NEWARK STREET, 71 NEWARK STREET, 73-75 NEWARK STREET, 77 NEWARK STREET, 79 NEWARK STREET, AND 81-85 NEWARK STREET, IDENTIFIED ON THE OFFICIAL TAX MAP OF THE CITY OF NEWARK, AS BLOCK 2838, LOTS 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 18 AND 19 (ADDITIONAL LOTS 20 AND 21) FOR THE AMOUNT OF $4,077,777.77.
body
WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the “Redevelopment Law”), provides a process for municipalities to participate in the redevelopment and improvement of areas in need of redevelopment; and
WHEREAS, in order to stimulate the reinvigoration of the City of Newark (the “City”), by Resolution 7RDO(AS) adopted by the Municipal Council on June 15, 2005, the entire City was designated as an area in need of rehabilitation, pursuant to the Redevelopment Law; and
WHEREAS, on January 21, 2009, pursuant to Ordinance 6PSF-a, the Municipal Council adopted the Broad Street Station Redevelopment Plan (the “Redevelopment Plan”) on the basis of the Municipal Council’s declaration of the entire City as an area in need of redevelopment, pursuant to Resolution 7RDO(AS) and the Redevelopment Law; and
WHEREAS, the City is the owner of the real property located at 57 Newark Street, 59 Newark Street, 61-61 ½ Newark Street, 63 Newark Street, 65 Newark Street, 67 Newark Street, 69 Newark Street, 71 Newark Street, 73-75 Newark Street, 77 Newark Street, 79 Newark Street, and 81-85 Newark Street and identified as Block 2838, Lots 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 18 and 19 (additional Lots 20 and 21) on the Official Tax Map of the City of Newark in the County of Essex, State of New Jersey (the “Property”); and
WHEREAS, the City has determined that the Property is no longer needed for any public use and that redevelopment of the Property will contribute to the economic improvement of the Central Ward in accordance with the intent, goals and objectives of the Redevelopment Plan; and
WHEREAS, on February 26, 2024, the City solicited Letters of Intent (“LOI”) for prospective redevelopers to purchase and redevelop the Property within the Redevelopment Plan area; and
WHEREAS, on March 22, 2024, the City received two (2) proposals to its LOI; and
WHEREAS, upon review and scoring of both proposals, the Selection Committee determined that it was in the City’s best interest to interview the two (2) applicants and the interviews occurred on June 5, 2024; and
WHEREAS, following the June 5, 2024 interviews, the Selection Committee requested that the two (2) applicants submit a Best and Final Offer, no later than June 14, 2024; and
WHEREAS, the Selection Committee reviewed the Best and Final Offer submissions from both applicants and determined that in furtherance of goals and objectives of the Redevelopment Plan, it is in the City’s best interest that By Gomes, LLC be designated as the Redeveloper of the Property; and
WHEREAS, By Gomes, LLC, a housing redeveloper with extensive development experience in the City of Newark and active in the neighborhood in the Central Ward responded with a proposal to develop approximately five hundred (500) units of mixed-income residential rental housing; provide for thirty (30) units of Permanent Supportive Housing for Chronically Homeless Newark Residents on the Site of 79 Newark Street; support the development of a New Hope Village Project with twenty (20) units of transitional housing in the Central Ward; and build community spaces with offices and meeting rooms (the “Project”) upon the Property; and
WHEREAS, the City wishes to enter into a Redevelopment Agreement with the Redeveloper for the purpose of setting forth in detail each Parties’ respective undertakings, rights and obligations in connection with the development and construction of the Project; and
WHEREAS, the Redeveloper will implement the development, design, financing and construction of the Project in conformity with the Redevelopment Plan and in accordance with the Redevelopment Law; and
WHEREAS, the City and Redeveloper desire to enter into an Agreement in order to memorialize the terms and conditions of the Project, sale and redevelopment of the Property, in a form substantially consistent to the Agreement, attached hereto as Exhibit A; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(e) and (f) of the Redevelopment Law, the Department of Economic and Housing Development has recommended that the City enter into an agreement for the sale and redevelopment of the Property with the Redeveloper for the consideration of Four Million Seventy-Seven Thousand Seven Hundred and Seventy-Seven Dollars and Seventy-Seven Cents ($4,077,777.77) ("Purchase Price"), which price, and under such terms as, the City deems to be reasonable, for the purpose of redeveloping the Property, in accordance with the Act, the Agreement, and the Redevelopment Plan; and
WHEREAS, the Agreement shall supersede any previous agreement(s) or conditions related to the redevelopment of the Property.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Recitals set forth above are incorporated herein as if set forth at length.
2. The Mayor of the City of Newark, 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 Agreement for the Sale and Redevelopment of Land (the “Agreement”) with By Gomes, LLC in a form substantially consistent with the one attached hereto as Exhibit A.
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 Agreement concerning the sale and transfer of the property commonly known as 57 Newark Street, 59 Newark Street, 61-61 ½ Newark Street, 63 Newark Street, 65 Newark Street, 67 Newark Street, 69 Newark Street, 71 Newark Street, 73-75 Newark Street, 77 Newark Street, 79 Newark Street, and 81-85 Newark Street and identified as Block 2838, Lots 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 18 and 19 (additional Lots 20 and 21) on the Official Tax Map of the City of Newark in the County of Essex State of New Jersey and may enter into and execute any related documents which may be necessary to effectuate same, including, but not limited a Quitclaim Deed with a Right of Reverter clause for the Property.
4. Said Quitclaim Deed conveying title to the Property to the Redeveloper shall be approved as to form and legality by the City’s Corporation Counsel and attested to and acknowledge by the City Clerk.
5. The Mayor of the City of Newark, and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to execute a Declaration of Covenants and Restrictions as agreed to by the City and the Redeveloper and approved as to form and legality by the City’s Corporation Counsel and attested to and acknowledged by the City Clerk.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the 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 entry into such agreement) to the Municipal Council by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City’s Corporation Counsel.
7. The Redeveloper shall be designated as the exclusive redeveloper of the Property and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the Property is hereby rescinded.
8. 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 Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached 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 time period.
9. The Director of the Department of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety percent (90%) of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, adopted on November 6, 1985; and ten percent (10%) of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6S&Ff, adopted on June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
10. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale and Redevelopment of Land, the Quitclaim Deed, and all such other executed agreements authorized by this Ordinance on file in the Office of the City Clerk.
STATEMENT
This Ordinance authorizes the Mayor of the City of Newark, and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into an execute an Agreement for the Sale and Redevelopment of City property commonly known as 57 Newark Street, 59 Newark Street, 61-61 ½ Newark Street, 63 Newark Street, 65 Newark Street, 67 Newark Street, 69 Newark Street, 71 Newark Street, 73-75 Newark Street, 77 Newark Street, 79 Newark Street, and 81-85 Newark Street and identified as Block 2838, Lots 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 18 and 19 (additional Lots 20 and 21) on the Official Tax Map of the City of Newark in the County of Essex State of New Jersey to By Gomes, LLC. for the amount of $4,077,777.77.