Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Settlement Agreement
Purpose: Authorizing Execution of Settlement Agreement with ABL RPC Residential Credit Acquisition, LLC
Entity Name: ABL RPC Residential Credit Acquisition, LLC
Entity Address: 30 Montgomery Street, Suite 150, Jersey City,
New Jersey 07302
Sale Amount: N/A
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount:
Appraised Amount:
Contract Period: To commence within three (3) months and be completed within two (2) years from the transfer of ownership by the City
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
379 Avon Avenue/Block 2632/Lot 22.01/South Ward
381 Avon Avenue/Block 2632/Lot 22.02/South Ward
687 Clinton Avenue/Block 3008/Lot 1.01/South Ward
Additional Information:
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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 of Newark (the “City”), by Resolution 7Rdo(AS) 061505 adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, on September 5, 2019, the City Municipal Council adopted Resolution 7R2-g(AS) authorizing an Agreement for the Sale of Land and Redevelopment (the “Redevelopment Agreement”) between the City and Newark Interfaith, LLC (the “Redeveloper”) concerning the City-owned properties located at 379-381 Avon Avenue (Block 2632, Lot 22) and 687-689 Clinton Avenue (Block 3008, Lot 1), among other properties, which provided with certain rights and remedies, including a Right of Reverter, in the event of Default on the part of Redeveloper; and
WHEREAS, on or about May 6, 2020, the City Municipal Council adopted Resolution 7R2-P authorizing the Amended Redevelopment Agreement; and
WHEREAS, on or about December 7, 2020 the City and Redeveloper entered into an Amended Agreement for the Sale and Redevelopment of Land (the “Amended Redevelopment Agreement”), which removed certain properties from the Redevelopment Agreement; and
WHEREAS, Redeveloper executed a Note with APL RPC Residential Credit Acquisition LLC (the “Mortgage Lender”) on or about September 27, 2023 to secure Redeveloper’s indebtedness to the Mortgage Lender in the sum of $1,800,000.00 with interest without any notice to the City, which was required under the Amended Redevelopment Agreement; and
WHEREAS, Redeveloper executed a Mortgage with the Mortgage Lender on September 27, 2023 (the “Mortgage”) to secure payment of the obligation as set forth in the Note without notice to the City. The Mortgage was recorded in the County Clerk’s Office of Essex on October 3, 2023 as Instrument Number 2023059492. The Mortgaged premises being known as: (1) 379 Avon Avenue, Newark, New Jersey 07108 (Block 2632, Lot 22.01); (2) 381 Avon Avenue, Newark, New Jersey 07108 (Block 2632, Lot 22.02); (3) 687 Clinton Avenue, Newark, New Jersey 07108 (Block 3008, Lot 1.01); and (4) 689 Clinton Avenue, Newark, New Jersey 07108 (Block 3008, Lot 1.02) (the “Properties”); and
WHEREAS, the City maintains that it sent a Notice of Breach of the Amended Agreement and Declaration of Default and Demand for Return of the City of Newark Properties Pursuant to Revesting Rights to the Redeveloper on March 3, 2023; and
WHEREAS, Mortgage Lender filed a Foreclosure Complaint with the Essex County Superior Court on April 25, 2025 under the docket number SwC-F-004750-25 (the “Foreclosure”), seeking possession of the premises; and
WHEREAS, following the filing and entry of Plaintiff’s Motion for Final Judgment in the Foreclosure, a payment was received with regard to the subject property located at 689 Clinton Avenue, Newark, New Jersey and on September 1, 2026, the Superior Court of New Jersey, Chancery Division issued an Amended Final Judgment of Foreclosure against the three remaining Properties; and
WHEREAS, a Sheriff’s sale for the Properties was scheduled to take place on March 31, 2026; and
WHEREAS, the City filed an Order to Show Cause on March 25, 2026, seeking emergent injunctive relief to restrain the Sheriff’s Sale and to intervene as a necessary party to protect its interest in the Properties; and
WHEREAS, the City and Mortgage Lender have amicably agreed to settle and adjust any dispute between on the terms and conditions set forth in the Settlement Agreement, attached hereto as Exhibit A.
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, are hereby authorized to enter into and execute the Settlement Agreement in substantially the form attached hereto as EXHIBIT A.
2. 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 Settlement Agreement and may enter into and execute as necessary any related document which may be necessary in order to effectuate the Settlement Agreement.
3. The executed Settlement Agreement shall be placed on file in the Office of the City Clerk by the Acting Deputy Mayor/Director of the Department of Economic and Housing Development.
4. This Resolution shall take effect immediately.
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 Settlement Agreement with ABL RPC Residential Credit Acquisition, LLC.