Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Application for Long-Term Tax Abatement
Purpose: Approval of the Assignment and Assumption of the existing tax abatement and financial Agreement in sale of the affordable housing project located at 75-93 Lock Street from Lock Street Preservation Urban Renewal Partnership, L.P. to Lock 75 Nuttman Urban Renewal Entity, LLC
Entity Name: Lock 75 Nuttman Urban Renewal Entity, LLC
Entity Address: Glenpoint Center West, 500 Frank W. Burr Boulevard, suite 47, Teaneck, NJ 07666
Abatement Period: Continuation of original 50 year abatement
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)
2-22 Nuttman Street/Block 401/Lot 11/ Central Ward
Additional Information:
Original tax abatement granted by Resolution 7Rf 061880 to Neighborhoods of the Universities Lock Street Apartments Company
Assignment and Assumption granted by Resolution 7REG 080499 to Lockstreet Preservation Urban Renewal Partnership, LP
body
WHEREAS, on June 18, 1980, the Newark Municipal Council adopted Resolution 7Rf granting a long term tax abatement to Neighborhoods of the Universities Lock Street Apartments Company, a New Jersey Limited Dividend partnership, under the Limited Dividend Non-Profit Housing Corporations or Associations Law, N.J.S.A. 55:16-1 et seq. (the "Limited Dividend Law") for an affordable housing project located at 75-93 Lock Street and designated as Block 401, Lot 11 on the Official Tax Map of the City of Newark (the "Project"); and
WHEREAS, as authorized under Resolution 7Rf 061880, the City entered into a Financial Agreement with Neighborhoods of the Universities Lock Street Apartments Company governing the tax abatement for the Project (the "Financial Agreement"); and
WHEREAS, in 1999, Neighborhoods of the Universities Lock Street Apartments Company filed an application seeking City approval for the sale of the Project and the assignment of the Financial Agreement to Lock Street Preservation Urban Renewal Partnership, L.P.; and
WHEREAS, on August 4, 1999, the Newark Municipal Council adopted Resolution 7REG authorizing the sale of the Project and the assignment of the Financial Agreement to Lock Street Preservation Urban Renewal Partnership, L.P. and authorizing the Mayor to sign, on behalf of the City, an Assignment and Assumption Agreement with Lock Street Preservation Urban Renewal Partnership, L.P. (the "Original Assignment Agreement"); and
WHEREAS, as authorized by Resolution 7REG 080499, the City and Lock Street Preservation Urban Renewal Partnership, L.P. executed the Original Assignment Agreement; and
WHEREAS, Lock Street Preservation Urban Renewal Partnership, L.P. (the "Assignor") is about to enter into a contract with Lock 75 Nuttman Urban Renewal Entity, LLC (the "Assignee") to sell the Project and transfer the Financial Agreement to the Assignee, which contract requires City approval of the transfer of the Financial Agreement; and
WHEREAS, the Assignee has filed an application with the City seeking City consent to the sale of the Project and the transfer of the Financial Agreement from the Assignor to the Assignee; and
WHEREAS, the City has reviewed the application filed by the Assignee seeking City consent to the assignment of the Financial Agreement and has determined that the Assignee is a duly-authorized urban renewal entity that has the capacity and experience to own and operate the Project and to assume all of the rights and obligations of the Assignor under the Financial Agreement; and
WHEREAS, according to the Certification of the Tax Assessor, dated March 3, 2014, the Project is located on real property commonly known as 2-22 Nuttman Street and identified on the City's tax map as Block 401, Lot 11;
WHEREAS, the Municipal Council wishes to adopt this resolution in order to reflect the City's consent to the sale of the Project and of the transfer of the Financial Agreement to the Assignee and to authorize the Mayor to execute, on behalf of the City, an Assignment and Assumption Agreement between the City, the Assignor, and the Assignee.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City hereby consents to (i) the sale of the affordable housing project located at 2-22 Nutman Street and designated as Block 401, Lot 11 on the Official Tax Map of the City of Newark (the "Project") by Lock Street Preservation Urban Renewal Partnership, L.P. (the "Assignor") to Lock 75 Nuttman Urban Renewal Entity, LLC, 500 Frank W. Burr Boulevard, Suite 47, Teaneck, New Jersey 07666 (the "Assignee"), and to (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee.
2. The Municipal Council hereby authorizes the Mayor to execute, on behalf of the City, the Assignment and Assumption Agreement between the City, the Assignor, and the Assignee (the "Assignment Agreement") in the form attached hereto.
3. The long term tax abatement for the Project will expire on July 31, 2031 and will remain in effect until that date provided that the Assignee complies with all applicable State statutes, City Ordinances and Resolutions and terms of the Assignment Agreement and Financial Agreement. This Resolution will not extend the period of the tax abatement beyond the date of expiration.
4. The Assignment Agreement, once fully executed, shall be filed by the Acting Director of the Department of Economic and Housing Development with the Office of the City Clerk.
STATEMENT
This resolution memorializes the City's consent to (i) the sale of the affordable housing project located at 2-22 Nuttman Street and designated as Block 401, Lot 11 on the Official Tax Map of the City of Newark (the "Project") by Lock Street Preservation Urban Renewal Partnership, L.P. (the "Assignor") to Lock 75 Nuttman Urban Renewal Entity, LLC, 500 Frank W. Burr Boulevard, Suite 47, Teaneck, New Jersey 07666 (the "Assignee"), and to (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee. This resolution also authorizes the Mayor to execute, on behalf of the City, an Assignment and Assumption Agreement with the Assignor and the Assignee in the form attached to the resolution.