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AN ORDINANCE AUTHORIZING THE CITY OF NEWARK PURSUANT TO N.J.S.A. 40A:12-14(c) TO ENTER INTO A FIVE-YEAR LEASE AGREEMENT WITH NEWARK BETH ISRAEL MEDICAL CENTER, A NEW JERSEY NONPROFIT CORPORATION AND SUBSIDIARY OF ROBERT WOOD JOHNSON BARNABUS HEALTH FOR THE RENTAL OF SPACE WITHIN CITY-OWNED PROPERTY LOCATED AT 110 WILLIAM STREET, NEWARK NEW JERSEY, ESSEX COUNTY, NEW JERSEY AND KNOWN AS BLOCK 101, LOT 1,6 ON THE TAX MAP OF THE CITY OF NEWARK TO PROVIDE A FOOD FARMACY FOR NEWARKERS RESIDING IN A NEW JERSEY DEPARTMENT OF ECONOMC DEVELOPMENT-DESIGNATED FOOD DESERT.
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WHEREAS, the City of Newark (“City”) operates a health center, as defined under 42 C.F.R. § 1001.952(w) and formed pursuant to Section 330 of the Public Health Service Act (“PHSA”), whose mission is in part to provide a space for transformative change through opportunities for its patients to acquire food; and
WHEREAS Newark Beth Israel Hospital (“NBIH”) is a nonprofit corporation organized under the laws of the State of New Jersey and a subsidiary of Robert Wood Johnson Barnabus Health Corporate Services, Inc. (“RWJBH”), a New Jersey nonprofit corporation; and
WHEREAS, RWJBH is one of the largest integrated health care delivery systems with a mission to provide the highest quality patient care and health education to both the community and region; and
WHEREAS, NBIH has obtained from the New Jersey Department of Health grant-in-aid funding for the City’s Access to Health Care Partnership; and
WHEREAS the Department of Health and Community Wellness (“Department”) has determined that allowing NBIH to operate a food farmacy within the City-owned health center building located at 110 William Street, Newark, New Jersey (“Premises”) will contribute meaningfully to expanding access to comprehensive high-quality outpatient services, including specialty services, for City residents, particularly low income and medically underserved individuals; and
WHEREAS, NBIH has agreed to complete, at its sole cost and expense, all the alterations to, and reconfigurations of the Premises necessary to enable it to serve as a Food Farmacy; and
WHEREAS, the Department recommends that the City enter into a lease of the Premises to NBIH for such purpose for a period of five (5) years with one (1) option to renewal for an additional five (5) years; and
WHEREAS, pursuant to N.J.S.A. 40A:12-14(c), the City is authorized to lease any real property to a nonprofit corporation or association for a public purpose; and
WHEREAS, the provision of a food farmacy for Newark residents residing in a State-of-New-Jersey-designated food desert constitutes a public purpose within the meaning of N.J.S.A. 40A:12-15.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Section 1. The Mayor and/or his designee(s), the Business Administrator, and/or the Director of the Department of Health and Community Wellness, are hereby authorized to enter into and execute a lease agreement with Newark Beth Israel Medical Center, a New Jersey nonprofit corporation and subsidiary of Robert Wood Johnson Barnabus Health, having an address at 201 Lyons Avenue, Newark, New Jersey 07112. Said agreement is attached hereto as Exhibit A. The principal terms of the lease shall be as follow:
1. Premises: The Premises shall consists a space within city-owned property located at 110 William Street, City of Newark, Essex County, New Jersey, and designated as Block 101, Lot 1,6 on the Tax Map of the City of Newark. Said space shall consist of the area designated on the floor plans attached hereto as Exhibit B (Schedule A of the Lease agreement).
2. Purpose: The Premises shall serve as a food farmacy (as that term is defined in the attached lease agreement) for City of Newark residents facing food desert insecurity issues.
3. Term: The term of said lease shall be for a period of five (5) years to commence upon the issuance to Newark Beth Israel Medical Center by the Department of Health and Community of a Notice to Proceed. An option to renew the initial term for an additional five-year period upon the same terms and conditions of the initial term is hereby authorized.
4. Rent: The annual rent shall be Zero Dollars and Zero Cents ($0.00).
Section 2. The Mayor and/or his designee(s), the Business Administrator, and/or Director Department of Health and Community Wellness are hereby authorized to enter into and execute any additional documents necessary to effectuate the terms of the lease agreement.
Section 3. Pursuant to N.J.S.A. 40A:12-14(c), the Department of Health and Community Wellness shall be responsible for enforcing the terms of the lease, which enforcement shall entail requiring that Newark Beth Israel Medical Center annually submit a report to the Director of Health an Community Wellness setting out the use to which the Premises was put during each year, the activities it undertook in furtherance of the public purpose for which the lease is being granted, the approximate cost, if any, of such activities, and an affirmation of its continued tax-exempt status. The report may be in the form attached hereto as Exhibit C (Schedule C of the Lease Agreement).
Section 4. The Director of the Department shall file a copy of the fully-executed lease agreement with this Ordinance approving in the Office of the City Clerk.
Section 5. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
Ordinance authorizing the Mayor or his designee(s), the Business Administrator, and/or the Director of the Department of Health and Community Wellness to enter into and execute a Lease Agreement, with Newark Beth Israel Medical Center, a New Jersey Nonprofit Corporation having an address at 201 Lyons Avenue. Newark, New Jersey 07112 to lease the portion of the Building located at 110 William Street, Newark, Essex County, New Jersey, which is designated on the Tax Map of the City of Newark as Block 101, Lot 1.6. The purpose of the lease is to establish a food farmacy for patients using clinical services to ensure their health, safety, and wellness. The term is for a period of five (5) years, with one 5-year renewal option. The annual rental amount is $0.00.