Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to the Agreement for the Sale and Redevelopment of Land to MB Development & Management, LLP, to change the Entity Name
Entity Name: MB Development & Management, LLC
Entity Address: 17 Academy Street, Suite 301, Newark, New Jersey 07102
Sale Amount: $50,000.00
Cost Basis: (X) $10.00PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $85,000.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within twenty-four (24) months from the transfer of ownership by the City
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)
509 Avon Avenue/ Block 2640/Lot 29/South Ward
511 Avon Avenue/Block 2640/Lot 30/South Ward
Additional Information:
Resolution 7R2-c adopted on December 18, 2024, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes a First Amendment to the Agreement for the Sale and Redevelopment of Land to change the Entity Name.
body
WHEREAS, on December 18, 2024 the Newark Municipal Council adopted Resolution 7R2-c (the “Original Resolution”), which authorized the Mayor and/or his designee the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land (“Agreement”), for the sale of the following City-owned properties (the “Properties”) to MB Development & Management, LLP, 17 Academy Street, Suite 301, Newark, New Jersey 07102 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the South Ward, no longer needed for public use, in accordance with the Third Amendment to the South Ward Redevelopment Plan, adopted by Ordinance 6S&Fd(S) on August 17, 2005, as amended, which governs the redevelopment of City-owned property located in the South Ward, in the amount of Fifty Thousand Dollars and Zero Cents ($50,000.00), for the new construction of a 16-unit apartment building for individuals whose income is at 40-80% Area Median Income (“AMI”) with a commercial space (“Scope of Project”):
ADDRESS WARD BLOCK LOT
509 Avon Avenue South 2640 29
511 Avon Avenue South 2640 30
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Properties, pursuant to the Agreement and commencing the redevelopment of the Properties, Redeveloper desires to proceed with the purchase of the Properties in the name of an affiliated entity, MB Development & Management, LLC, 17 Academy Street, Suite 301, Newark, New Jersey 07102 (“Amended Redeveloper”) to optimize operational compliance as it relates to the New Jersey Housing Affordability Services (HAS) requirements; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the request to amend the name of the Redeveloper to the Amended Redeveloper and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with the Amended Redeveloper (“Amended Agreement”); and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to approve the sale of the Properties and to change the Redeveloper to reflect the Amended Redeveloper and enter into the First Amendment to the Agreement for the Sale and Redevelopment of Land (“Amended Agreement”) in order to memorialize the terms and conditions of the sale and redevelopment of the Properties, in a form substantially consistent to the Amended Agreement, attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-c, adopted on December 18, 2024 (“Original Resolution”) by the Newark Municipal Council and the Agreement for the Sale and Redevelopment of Land (“Original Agreement”) are hereby amended to change the following:
• The name of the Redeveloper from MB Development & Management LLP, to MB Development & Management LLC, 17 Academy Street, Suite 301, Newark, New Jersey 07102 (“Amended Redeveloper”).
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, is hereby authorized to enter into and execute the First Amendment to the Agreement for the Sale and Redevelopment of Land (“Amended Agreement”), in the form attached here to as Exhibit A, with MB Development & Management LLC, 17 Academy Street, Suite 301, Newark, New Jersey 07102 (the “Redeveloper), for the private sale and rehabilitation of the following Properties, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Amended Agreement and the South Ward Redevelopment Plan, as amended and to amend the Redeveloper Name:
ADDRESS WARD BLOCK LOT
509 Avon Avenue South 2640 29
511 Avon Avenue South 2640 30
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
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 Amended Agreement and may enter into any related documents, which may be necessary in order to effectuate the Amended Agreement.
5. The executed Amended Agreement and the Quitclaim Deed shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development is authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Amended Agreement, subject to full written disclosure of such extension(s) (in the form of a signed Memorandum to be submitted to the Office of the City Clerk prior to adoption) to the Municipal Council of the City of Newark by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City of Newark’s Corporation Counsel.
7. The Redeveloper shall have thirty (30) days from the date this Resolution is certified by the Office of the City Clerk to execute the attached Amended Agreement and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Amended Agreement within this thirty (30) day time period, the authorization provided by this Resolution shall be null and void, unless the Deputy Mayor/Director of the Department of Economic and Housing Development agrees in writing to extend this thirty (30) day period.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Properties. Said Quitclaim Deed conveying title to the Properties 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.
STATEMENT
This Resolution 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 First Amendment to the Agreement for the Sale and Redevelopment of Land with MB Development & Management LLC, 17 Academy Street, Suite 301, Newark, New Jersey 07102 (“First Amendment”), to amend the Redeveloper Name.