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AN ORDINANCE TO EXTINGUISH THE RIGHT OF REVERTER IN THE DEED FOR THE PROPERTY COMMONLY KNOWN AS 613 SOUTH 18TH STREET, NEWARK, NEW JERSEY, BLOCK 351, LOT 59 AND AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT BETWEEN THE CITY OF NEWARK AND 613 SOUTH 18TH LLC.
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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 July 2, 2019, the City adopted Resolution 7R2-h(s) authorizing the sale of the property 613 S. 18th Street (the “Property”) to Moustafa Abdalla to create a side-yard for the adjacent owner-occupied home (the “Project”); and
WHEREAS, on May 14, 2020, the City and Moustafa Abdalla entered into an Agreement for the Sale of Land and Redevelopment (the “Redevelopment Agreement”) for the Project; and
WHEREAS, the City sold the Property to Moustafa Abdalla on June 18, 2020 for $6,800.00 via Quitclaim Deed, attached hereto as Exhibit A (the “Deed”); and
WHEREAS, the Deed contained a Right of Reverter stating, “the property is sold to the Redeveloper for the purpose of redeveloping the property to create a side-yard for the adjacent real property located at 613 S 18th Street, Newark, New Jersey and identified on the Tax Map of the City of Newark as Block 351 Lot 59 and is subject to the terms and conditions set forth in the Agreement for Sale of Land and Redevelopment authorized by the Municipal Council Resolution 7R2-H (S) adopted July 2, 2019”; and
WHEREAS, Moustafa Abdalla applied to the Zoning Board of Adjustment of the City of Newark (the “Zoning Board”) for a C Variance for insufficient lot area, insufficient lot width and insufficient lot area per dwelling unit to construct a new two-family dwelling with two (2) parking; and
WHEREAS, on March 16, 2021, the Zoning Board adopted the Resolution granting the C Variance and site plan approval to construct a new two-family dwelling with two (2) parking; and
WHEREAS, on March 22, 2022, Moustafa Abdalla sold the Property to 613 South 18th LLC for $105,000.00; and
WHEREAS, 613 South 18th LLC constructed a new two-family dwelling; and
WHEREAS, 613 South 18th LLC sold the Property to Yenise C. Peralta Collado for $755,000.00; and
WHEREAS, 613 South 18th LLC wishes to have the deed restriction ‘Right of Reverter’ removed from the deed in order to provide marketable title; and
WHEREAS, the City and 613 South 18th LLC have engaged in negotiations and agree to enter into a Settlement Agreement whereas the City will extinguish its right of re-entry and reverter to the Property in exchange for $6,800.00 from 613 South 18th LLC, which would be the price of the Property had the Property been sold as a buildable lot; and
WHEREAS, the City and 613 South 18th LLC have amicably agreed to settle and adjust the matters in difference between them on the terms and conditions set forth in the Settlement Agreement, attached hereto as Exhibit B.
NOW, THEREFORE, BE IT ORDAINED 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 B.
2. The Right of Reverter contained in the Quitclaim Deed dated June 18, 2020, recorded on July 23, 2020 in the Essex County Register’s Office be extinguished.
3. The Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development of the City is hereby authorized to execute the Settlement Agreement removing the City’s interest in said Property.
4. 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 documents which may be necessary in order to effectuate the Settlement Agreement.
5. The executed Settlement Agreement shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of Department of Economic and Housing Development.
6. This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This ordinance authorizes the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a Settlement Agreement with 613 South 18th LLC to remove the City’s Right of Reverter interest in the Property.