Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Settlement of Civil Litigation
Docket No.: ESX-L-5054-18
Claimant: 330 Doremus Avenue, LLC v. Municipal Council of the City of Newark and the Newark Central Planning Board
Claimant's Attorney: David L. Isabel, Esq.
Attorney's Address: 75 Livingston Avenue, Roseland, New Jersey 07068
Settlement Amount: N/A
Funding Source: N/A
Account Code Line:
Additional Comments:
330 Doremus Avenue, LLC v. City of Newark, et al.,
body
WHEREAS, the Municipal Council of the City of Newark (the “Municipal Council”) adopted Resolution 7R2-a on January 23, 2019, which authorized and directed the Central Planning Board of the City of Newark (the “Central Planning Board”) to conduct a preliminary investigation (the “Preliminary Investigation”) of a designated study area on or in vicinity of Doremus Avenue (the “Study Area”) to determine whether the Study Area qualified as a Condemnation Redevelopment Area in accordance with the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the “Redevelopment Law”); and
WHEREAS, 330 Doremus Avenue, LLC is the owner of real property identified as Block 5070, Lots 3, 3.01, 5 and 5.01 on the Official Tax Map of the City of Newark (the “Property”), which was included in the Study Area; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-6, Topology NJ, LLC (the “Planning Consultant”) conducted the Preliminary Investigation to determine whether the Study Area met the criteria under the Redevelopment Law for designation as a Condemnation Redevelopment Area; and
WHEREAS, in furtherance of the Preliminary Investigation, the Planning Consultant prepared a report entitled “Doremus Avenue Area in Need of Redevelopment Investigation Report” dated October 6, 2017 which determined, in relevant part, that the Property met the statutory criteria and recommended that the Property be designated as a Condemnation Redevelopment Area; and
WHEREAS, Public Hearings were duly noticed and conducted by the Central Planning Board in accordance with the Redevelopment Law, after which the Central Planning Board adopted a Resolution recommending to the Municipal Council that the Study Area be designated as a Condemnation Redevelopment Area; and
WHEREAS, having accepted the recommendation of the Central Planning Board, on June 7, 2018, the Municipal Council adopted Resolution 7R2-d(S), which designated the entire Study Area as Condemnation Redevelopment Area (hereinafter, the “Project Area” or “Redevelopment Area”) in accordance with the Redevelopment Law; and
WHEREAS, on January 23, 2019, the Municipal Council adopted Resolution 7R2-a which repealed Resolution 7R2-d on June 7, 2018, and again determined that the Study Area qualifies as a Condemnation Redevelopment Area; and
WHEREAS, 330 Doremus Avenue, LLC in its former capacity as lessee of the Property, filed an action in lieu of prerogative writs in the Superior Court of New Jersey, Law Division, styled 330 Doremus Avenue, LLC v. City of Newark, et al., Docket No. ESX-L-5054-18 (the “330 Doremus Litigation” and collectively with the Chemtrade Litigation, the “Litigation”), challenging the Central Planning Board’s recommendation and the Municipal Council’s subsequent designation of the Property as a Condemnation Redevelopment Area; and
WHEREAS, the Parties have now reached a settlement of this dispute in order to avoid costly litigation expenses and wish to memorialize the terms of their settlement within this Settlement Agreement.
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 Corporation Counsel, is authorized, on behalf of the City of Newark to negotiate and execute a Settlement Agreement and Release, and any other documents, sufficient in form and content to the Corporation Counsel and to take whatever actions are necessary to effectuate the terms of the within resolution and settlement of this matter pursuant to the terms contained in the within resolution.
2. In exchange for the execution by 330 Doremus Avenue, LLC of the Settlement Agreement and Release, acceptable in the form to the Corporation Counsel and after passage of this resolution and upon receipt by the Corporation Counsel, within seven (7) calendar days of 330 Doremus Avenue, LLC’s receipt of the certified copy of the adopted resolution, 330 Doremus Avenue, LLC will dismiss the 330 Doremus Litigation, without prejudice and without costs, by filing a Stipulation of Dismissal without Prejudice.
3. 330 Doremus Avenue, LLC agrees to dismiss the 330 Doremus Litigation without prejudice within sixty (60) days of the entry of this Settlement Agreement, the City of Newark agrees to conditionally designate Plaintiff as the exclusive redeveloper of the Property until August 31, 2021 (the “Designation Period”).
4. During the Designation Period, the Parties will negotiate in good faith, the terms of a redevelopment agreement and any related documents thereto, for the Property, which will include, but shall not be limited to, project details consistent with prospective tenancy at the Property, as well as terms and conditions regarding the assignability of any redevelopment agreement.
5. Any redevelopment plan shall include, but not be limited to, the following permitted uses: asphalt manufacturing; manufacturing and assembly; fabrication and assembly of products, warehouses, wholesale sales, storage and distribution; storage of petroleum/tank farms; dock facilities; general office and research buildings; blending, refining and mixing of products including chemicals; recycling facilities; and/or manufacturing of brick, block, concrete, asphalt, and all related products.
6. During the Designation Period and the Designation Extension Period (as defined herein), the City of Newark agrees not to pursue condemnation of the Property. To the extent necessary during the Designation Period, 330 Doremus Avenue, LLC will engage the City’s staff and professional consultants with regard to drafting a redevelopment plan for the Property.
7. The settlement and resolution does not admit nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigation costs.
8. The Corporation Counsel shall file a fully executed copy of the Settlement Agreement and Release in the Office of the City Clerk.
9. This resolution shall be effective upon adoption in accordance with applicable State law.
STATEMENT
Resolution authorizing the Corporation Counsel on behalf of the City of Newark to resolve the 330 Doremus Litigation, without the need and expense of future litigation. This resolution and Settlement Agreement resolves the pending matter entitled 330 Doremus Avenue, LLC v. City of Newark, et al., Docket No. ESX-L-5054-18.