Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Redevelopment of the Property
Entity Name: 810 Broad Street Urban Renewal Company, LLC
Entity Address: 45 Academy Street, Suite 205, Newark, New Jersey 07102
Sale Amount: $ 220,000.00
Cost Basis: $ PSF ( X ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $ 171,400.00
Appraised Amount: $ 220,000.00
Contract Period: Commencing within thirty (30) days from the issuance of all permits and completed within twenty four (24) months
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)
17-19 Edison Place/Block 164/Lot 92/East Ward
Additional Information:
body
WHEREAS, the City, in connection with its efforts to redevelop the entire City, by Resolution 7RM, adopted on May 4, 2005, directed the Central Planning Board of the City (the "Central Planning Board") to undertake an investigation to determine if the City satisfied the statutory criteria as an "area in need of rehabilitation" in accordance with the provisions of N.J.S.A. 40A:12A-14 of the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the "Act"); and
WHEREAS, the Central Planning Board conducted the requested investigation in accordance with the Act, including a public hearing on June 6, 2005, after which hearing the Central Planning Board adopted a resolution recommending the designation of the entire City as an "area in need of rehabilitation" to the City Administration and Municipal Council; and
WHEREAS, on June 15, 2005, the Municipal Council adopted Resolution 7RD0 (A.S.), based upon the recommendation of the Central Planning Board, which designated the entire City as an "area in need of rehabilitation" (as defined by the Act) and the designation became effective on June 17, 2005 upon the transmission of the resolution to the New Jersey Department of Community Affairs by the City Clerk; and
WHEREAS, following the "area in need of rehabilitation" designation by the Municipal Council, pursuant to N.J.S.A. 40A:12A-7 the Municipal Council directed the Central Planning Board to review a proposed redevelopment plan known as the Living Downtown Redevelopment Plan governing portions of the Central Business District of the City, including the parcel of vacant and undeveloped real property owned by the City located at 17-19 Edison Place and identified on the City's tax map as Block 164, Lot 92 (the "Property"), which is the subject of the contract annexed hereto; and
WHEREAS, after reviewing the proposed redevelopment plan, the Central Planning Board adopted a resolution recommending that the Living Downtown Redevelopment Plan be adopted by the Municipal Council; and
WHEREAS, on September 3, 2008, the Municipal Council adopted Ordinance 6S&FG adopting the Living Downtown Redevelopment Plan (the "Redevelopment Plan"); and
WHEREAS, the Living Downtown Redevelopment Plan is applicable to the development and rehabilitation of City-owned properties located within the Central Business District of the City; and
WHEREAS, pursuant to the LRHL, the City has determined to act as the "Redevelopment Entity" (as such term is defined at N.J.S.A. 40A:12A-3) for the rehabilitation of the Property in accordance with the Redevelopment Plan; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(f), the City is authorized to arrange or contract with redevelopers for the planning, replanning, construction or undertaking of any redevelopment project; and
WHEREAS, 810 Broad Street Urban Renewal Company, LLC (the "Redeveloper") is in the process of redeveloping the former National State Bank Building located at 810 Broad Street (the "Redeveloper's Property") as a mixed-use project containing hotel, conference, restaurant and retail, which is adjacent to the Property (the "Project"), and has determined that the Property is both necessary and useful to completing same, and thus has offered to purchase the Property from the City for its fair market value; and
WHEREAS, the Project is in conformance with the Redevelopment Plan; and
WHEREAS, based on its review of the submissions and presentations made by representatives of the Redeveloper, the City determined that the Redeveloper has the professional experience and financial capabilities to carry out the Project and that conveyance of the Property to the Redeveloper is both necessary and useful to allow the Redeveloper to complete the Project; and
WHEREAS, the City believes the Project to be in the vital and best interests of the City and of the East Ward, and that it promotes the health, safety, and welfare of the City's residents.
NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee, the Acting Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute a redevelopment agreement with 810 Broad Street Urban Renewal Company, LLC, 45 Academy Street, Newark, New Jersey 07102, in the form attached hereto, for the private sale and redevelopment of the following property:
Address Block Lot Ward
17-19 Edison Place 164 92 East
2. Said property shall be sold to 810 Broad Street Urban Renewal Company, LLC by private sale for the consideration of Two Hundred Twenty Thousand and 00/100 Dollars ($220,000.00), for redevelopment in accordance with the redevelopment agreement annexed hereto.
3. The Acting 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 subordination agreements, access and right of entry agreements, and other relevant documents to effectuate said redevelopment agreement, subject to the approval as to form and legality by the City's Corporation Counsel.
4. The Acting Director of the Department of Economic and Housing Development is hereby authorized to execute a Bargain and Sale deed to the Redeveloper for the transfer of the above property as provided in the redevelopment agreement annexed hereto including a limited right of reverter and certain covenants required pursuant to N.J.S.A. 40A:12A-9. Said deed conveying title to the Redeveloper shall be approved as to form and legality by the City's Corporation Counsel and attested to and acknowledged by the City Clerk.
5. The Acting Director of Finance is hereby authorized to receive proceeds of sale and to deposit same as follows: ninety (90) percent of the sales proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under City Resolution No. 7RG110685; and ten (10) percent of the sale proceeds shall be placed in the City's Affordable Housing Trust Fund established under City Ordinance 6S&FF 062106 for the purpose of preserving or creating low or moderate income affordable housing.
6. A copy of the executed contract and deed shall be placed on file in the Office of the City Clerk by the Director of the Acting Department of Economic and Housing Development.
7. This resolution shall take effect immediately.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Acting Director of the Department of Economic & Housing Development to enter into and execute a contract for the private sale and redevelopment of the following City-owned property for the sum Two Hundred Twenty Thousand and 00/100 Dollars ($220,000.00) with said development to start within thirty (30) days from the issuance of all permits and completed within twenty four (24) months:
Address Block Lot Ward
17-19 Edison Place 164 92 East