Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Approximately 115 units of mixed income housing with parking and outdoor space
Entity Name: 650 Springfield Avenue Urban Renewal, LLC.
Entity Address: 61 Deans Lane, Monmouth Junction, New Jersey 08852
Sale Amount: $175,012.00
Cost Basis: (X) $4.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $576,500.00
Appraised Amount: $0.00
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)
650-656 Springfield Avenue/Block 364/Lot 21/South Ward
709 South 16th Street/Block 364/Lot 9/South Ward
711 South 16th Street/Block 364/Lot 10/South Ward
713 South 16th Street/Block 364/Lot 11/South Ward
715 South 16th Street/Block 364/Lot 12/South Ward
717 South 16th Street/Block 364/Lot 13/South Ward
708 South 17th Street/Block 364/Lot 28/South Ward
712 South 17th Street/Block 364/Lot 26/South Ward
714-716 South 17th Street/Block 364/Lot 24/South Ward
718-722 South 17th Street/Block 364/Lot 22/South Ward
724-726 South 17th Street/Block 364/Lot 29/South Ward
55 19th Avenue/Block 364/Lot 1/South Ward
Additional Information:
Total Square Footage = 43753 X $4.00 = $175,012.00
Sale at prices set forth by Ordinance 6S&Fh, adopted on April 7, 2004, establishing the minimum sale price of City-owned Properties.
body
WHEREAS, the purpose of this resolution is to approve the sale and rehabilitation of the following City-owned properties located in the South Ward of the City of Newark:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
650-656 Springfield Avenue South 364 21 104.6X65 6799
709 South 16th Street South 364 9 25X100 2500
711 South 16th Street South 364 10 25.1X100 2510
713 South 16th Street South 364 11 24.10X100 2410
715 South 16th Street South 364 12 25X100 2500
717 South 16th Street South 364 13 25X100 2500
708 South 17th Street South 364 28 24.10X100 2410
712 South 17th Street South 364 26 25X100 2500
714-716 South 17th Street South 364 24 50X100 5000
718-722 South 17th Street South 364 22 70X100 7000
724-726 South 17th Street South 364 29 48.8X105 5124
55 19th Avenue South 364 1 25X100 2500
Total Square Footage: 43,753.
Total Purchase Price: $175,012.00 ($4.00 per sq. ft.); and
WHEREAS, the City of Newark has determined that the above referenced City-owned properties (the “Properties”) are no longer needed for public use; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City of Newark is proceeding with the rehabilitation of the area and is conveying properties at such prices and upon such terms as it deems reasonable and said conveyance is made in conjunction with the applicable Redevelopment Plan, as amended; and
WHEREAS, the Municipal Council previously adopted Resolution 7Rdo(AS) on June 15, 2005, designating the entire City as an “area in need of rehabilitation” under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq. (the “LRHL”); and
WHEREAS, the Municipal Council thereafter adopted Ordinance 6PhS&Fc(S) on August 17, 2005, adopting the Third Amendment to the South Ward Redevelopment Plan governing the redevelopment of City-owned properties located within the South Ward, which includes the above-referenced Properties; and
WHEREAS, the City received a letter of intent for the purchase and rehabilitation of the Properties from 650 Springfield Ave Urban Renewal LLC, 61 Deans Lane, Monmouth Junction, New Jersey 08852, (the “Redeveloper”), to create rental or for-sale housing; and
WHEREAS, based upon the City’s review of the request and other such information, the City has determined that the Redeveloper possesses the proper qualifications and requisite financial resources and capacity to acquire the Properties and to rehabilitate them in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the Agreement for the Sale of Land and Redevelopment, the form of which is attached hereto (the “Agreement”), and the South Ward Redevelopment Plan, as amended; and
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development has recommended that the City of Newark sell the Properties to 650 Springfield Ave Urban Renewal LLC, whom is willing to purchase the Properties from the City, for the consideration of, One Hundred Seventy Five Thousand Twelve Dollars and Zero Cents ($175,012.00) for the purpose of rehabilitating said properties in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the South Ward Redevelopment Plan, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee and 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 attached hereto 650 Springfield Ave Urban Renewal LLC, 61 Deans Lane, Monmouth Junction, New Jersey 08852, 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 Agreement and the South Ward Redevelopment Plan, as amended:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
650-656 Springfield Avenue South 364 21 104.6X65 6799
709 South 16th Street South 364 9 25X100 2500
711 South 16th Street South 364 10 25.1X100 2510
713 South 16th Street South 364 11 24.10X100 2410
715 South 16th Street South 364 12 25X100 2500
717 South 16th Street South 364 13 25X100 2500
708 South 17th Street South 364 28 24.10X100 2410
712 South 17th Street South 364 26 25X100 2500
714-716 South 17th Street South 364 24 50X100 5000
718-722 South 17th Street South 364 22 70X100 7000
724-726 South 17th Street South 364 29 48.8X105 5124
55 19th Avenue South 364 1 25X100 2500
Total Square Footage: 43753
Total Purchase Price: $175,012.00 ($4.00 per sq. ft.)
2. Said properties shall be sold to 650 Springfield Ave Urban Renewal LLC, by private sale for the purpose of rehabilitating the abovementioned properties into approximately 115 units of mixed income housing with parking and outdoor space.
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 Redevelopment Agreement annexed hereto and may enter into access and right of entry agreements and any related documents which may be necessary in order to effectuate the sale of the Properties and the terms and conditions of the Agreement, all in forms subject to the approval of the City of Newark Acting Corporation Counsel.
4. 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 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 Acting Corporation Counsel.
5. The Redeveloper shall be designated as the exclusive redeveloper of the Properties and any other prior legislation authorizing or intended to authorize the sale and rehabilitation of the Properties is hereby rescinded.
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 Agreement for the Sale and Redevelopment of Land 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.
7. The Director of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety (90) percent of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, November 6, 1985; and ten (10) percent of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6PS&Ff, June 21, 2006 for the purpose of preserving low and moderate income affordable housing.
8. 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 resolution on file in the Office of the City Clerk.
9. The Redeveloper shall be required to comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, April 5, 1995; the City of Newark’s Affirmative Action Plan 7Rbp, March 1, 1995; Federal Executive Order 11246, (as amended by Executive Orders 11375 and 12086) regarding the award of goods and services contracts; and the City of Newark Ordinance 6PSF-c June 17, 2015 Amending Title II, Administration, Chapter 4, General Administration, Section 20, Hiring of Newark Residents by Contractors or Other Persons Doing Business with the City of Newark and Section 21, Newark Residents’ Employment Policy, by Adding Language to Address Immediate Short Term Training and Employment Opportunities and Repealing the Newark Employment Commission, a copy of which is attached to the Agreement (the “First Source Ordinance”), all as may be applicable. In addition, the Redeveloper has agreed to ensure that 30% of all contractors, subcontractors and suppliers shall be Newark-based companies.
10. The rehabilitation of the Properties shall be commenced within three (3) months and be completed within eighteen (18) months from the transfer of ownership of the Properties by the City to the Redeveloper.
11. The project to be implemented by the Redeveloper shall conform to the City of Newark Design Guidelines, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Additionally, the Redeveloper shall conduct any environmental investigation and remediation upon the Property as may be necessary. Should the Redeveloper fail to diligently pursue the rehabilitation of the Properties, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Properties back to the City, in accordance with the terms and conditions of the Agreement and the deed.
12. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Properties. Said Quitclaim Deed conveying title to the Properties to the Redeveloper shall be approved as to form and legality by the City’s Acting Corporation Counsel and 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 to enter into and execute an Agreement for the Sale and Redevelopment of Land with 650 Springfield Ave Urban Renewal LLC, 61 Deans Lane, Monmouth Junction, New Jersey 08852, 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 Agreement for the Sale and Redevelopment of Land and the South Ward Redevelopment Plan, as amended:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
650-656 Springfield Avenue South 364 21 104.6X65 6799
709 South 16th Street South 364 9 25X100 2500
711 South 16th Street South 364 10 25.1X100 2510
713 South 16th Street South 364 11 24.10X100 2410
715 South 16th Street South 364 12 25X100 2500
717 South 16th Street South 364 13 25X100 2500
708 South 17th Street South 364 28 24.10X100 2410
712 South 17th Street South 364 26 25X100 2500
714-716 South 17th Street South 364 24 50X100 5000
718-722 South 17th Street South 364 22 70X100 7000
724-726 South 17th Street South 364 29 48.8X105 5124
55 19th Avenue South 364 1 25X100 2500
Total Square Footage: 43,753.
Total Purchase Price: $175,012.00 ($4.00 per sq. ft.)
to create approximately 115 units of mixed income housing with parking and outdoor space.