Title
Dept/ Agency: Economic and Housing Development Department
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Lease Agreement
Purpose: Authorize Execution of Addendum to the Lease Agreement between Williams Scotsman, Inc. and the City of Newark and Authorize Payment Pursuant to Lease Agreement
Entity Name: Williams Scotsman, Inc.
Entity Address: 4646 E. Van Buren Street, Phoenix, Arizona 85008
Contract Amount: N/A
Funding Source:
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)
128-134 Irvine Turner Blvd/Block 2551/Lots 1 and 38/Central Ward
body
WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the "Act"), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7RDO(AS) adopted by the Municipal Council on June 15, 2005, the entire City of Newark (the “City”) was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, Resurgent Builders, LLC (“Redeveloper”) is the owner of the property located at 128-134 Irvine Turner Boulevard, Newark, New Jersey, and identified on the Tax Maps of the City of Newark as Block 2551, Lots 1 and 38 (the “Property”); and
WHEREAS, Redeveloper and WillScot entered into an agreement in which Redeveloper agreed to lease modular buildings from WillScot for a monthly fee; and
WHEREAS, the modular buildings were placed on the Property to be used as the First Precinct for the Newark Police Department; and
WHEREAS, a dispute as to payment arose between Redeveloper and WillScot; and
WHEREAS, without admitting liability or fault, the City has advanced to WillScot the sum of Forty Thousand Dollars ($40,000.00) in exchange from WillScot that the modular buildings will not be removed from the Property before March 31, 2025; and
WHEREAS, WillScot has dismissed its Complaint against the City (only) with prejudice under the Docket No. ESX-DC-029605-24 and the City and WillScot entered into a Settlement Agreement on March 26, 2025, a copy of which is attached hereto as Exhibit A; and
WHEREAS, the City (as opposed to Redeveloper) and WillScot have negotiated and agreed to enter into a new lease agreement (the “Lease Agreement”), a copy of which is attached hereto as Exhibit B, whereby the City will lease modular buildings directly from WillScot as of April 1, 2025 through December 31, 2025 at a monthly rent charge set forth in the New Lease; and
WHEREAS, the City has the right to renew the Lease Agreement on a month-to-month basis for an additional 12 months at the total monthly rent set forth in the Lease Agreement; and
WHEREAS, the City has been leasing the modular equipment continuously following the expiration date on a month-to-month basis for the base monthly rent of $9,809.51 (“Monthly Rental”) and owes past due rent in the amount of $151,154.51, for which the City acknowledges is due and owing;
WHEREAS, WillScot and the City wish to extend the Lease Agreement through December 31, 2026, at the Monthly Rental (“Extension Term”), provided the City pays the Outstanding Rent in the amount of $151,154.51, pursuant to the Lease Addendum attached hereto as Exhibit C;
WHEREAS, the City shall have the right to terminate the Lease Agreement upon 30 days’ notice.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, hereby: authorize the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the Lease Addendum to the Lease Agreement between the City of Newark and Williams Scotsman, Inc., in substantially the form attached hereto as Exhibit C.
2. The Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, hereby: authorize the outstanding payment due and owing to Williams Scotsman, Inc. pursuant to the Lease Addendum in the amount of $151,154.51 and authorize the monthly payment of $9,809.51 for the lease extension pursuant to the Lease Addendum.
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 Lease Addendum and may enter into any related documents which may be necessary in order to effectuate the Lease Addendum.
4. The executed Lease Addendum shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of Department of Economic and Housing Development.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a Lease Addendum with Williams Scotsman, Inc for the continued use of the modular buildings placed on the Property being used as the First Precinct for the Newark Police Department and authorizes payment under the Lease Addendum.