Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Subordination Agreement
Purpose: An Agreement to Subordinate the City of Newark's Reverter Rights by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and a Subordination Agreement in order to permit the Redeveloper to obtain the financing necessary for the development of three (3) - three family homes, of which one (1) will be for sale, and the other two (2) will be for rent, each having one (1) unit affordable at 60-80 percent of the Area Median Income (“AMI”)
Entity Name: Nobre Development, LLC
Entity Address: 160 South Street, Newark, New Jersey 07114
Sale Amount: N/A
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: N/A
Appraised Amount: N/A
Contract Period: Not Applicable
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 Properties:
(Address/Block/Lot/Ward)
476 15th Avenue/Block 282/Lot 16/Central Ward
466 South 14th Street/Block 330/Lot 38/West Ward
464 South 14th Street/Block 330/Lot 39/West Ward
Additional Information:
Resolution 7R2-h adopted on July 10, 2024, designated Nobre Development, LLC, as the Redeveloper and authorized the Agreement for the Sale and Redevelopment of Land
body
WHEREAS, pursuant to Resolution 7R2-h adopted on July 10, 2024, the Newark Municipal Council (“Municipal Council”) authorized the Mayor and/or his designee and 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”) with Nobre Development, LLC, 160 South Street, Newark, New Jersey 07114 (“Redeveloper”) to effectuate the sale of City of Newark (“City”) owned real properties located at 476 15th Avenue, 466 South 14th Street and 464 South 14th Street, Newark, New Jersey and identified on the official tax map of the City of Newark as Block 282, Lot 16 and Block 330, Lots 38 and 39 (“Properties”), for the purchase price of Sixty-Seven Thousand Five Hundred Dollars and Zero Cents ($67,500.00), for the new construction of three (3) three-family homes, of which one (1) will be sold and the other two (2) will be for rent, each having (1) unit as affordable rent at 60 - 80% of the Area Median Income (AMI) (“Project”); and
WHEREAS, the sale and Agreement were authorized pursuant to N.J.S.A. 40A:12A-8(g) and the Central and West Ward Redevelopment Plans; and
WHEREAS, such sale was authorized pursuant to N.J.S.A. 40A:12-13, which requires that such conveyance be subject to the condition that title to the Property revert back to the City in the event of A Default under Section VI., Event of Default, Termination of the Agreement and the Right of Reverter (mislabeled Section V.) of the Agreement and Section d. of the Deed (“Reverter Right”); and
WHEREAS, the Redeveloper has represented that it has secured financing from GV Investment Group, LLC, a New Jersey Limited Liability Company, P.O. Box 200, Vauxhall, New Jersey 07088 (“Lender”) in the aggregate principal amount of up to Five Hundred Thousand Dollars and Zero Cents ($500,000.00) (the “Loan”), to develop and complete the Project on the Properties, which loan will be evidenced by a Promissory Note (“Note”) in favor of Lender and will be secured by a Mortgage on the Properties (“Mortgage”); and
WHEREAS, as a condition of the above Loan, the Lender has requested that the City subordinate the Reverter Right to the rights of the Lender with respect to the Mortgage and Loan; and
WHEREAS, the Agreement states that the Reverter Right may be subordinated by the City subject to formal approval by the Municipal Council and pursuant to N.J.S.A. 40:60-51.2, which authorizes a municipality to waive, release, modify or subordinate any terms, covenants, conditions, limitations or reverters imposed in sales and conveyances of lands as to the erection, alteration or demolition of buildings or any other use to be made of land heretofore imposed by said municipality to accomplish the purposes for which such lands were sold and conveyed either at public or private sale including those set forth pursuant to Section 21 of P.L.1971, c. 199 (C.40A:12-21), but only after public hearing held before such Governing Body, of the holding of which notice describing the lands in question, and the terms, covenants, conditions, limitations or reverters to be waived, released, modified or subordinated, and, if to be modified or subordinated, describing the manner in which the same shall be modified or subordinated, shall first have been given by advertisement published once each week for two weeks in a newspaper published in said municipality or, if no newspaper be published therein, then in a newspaper circulating in such municipality, provided, however, that the power herein granted shall not be exercised to impair any vested or contractual rights of third parties; and
WHEREAS, the Department of Economic and Housing Development caused a notice to be advertised including the requirements established in N.J.S.A.40:60-51.2, in the Star Ledger, on October 9, 2026 and October 16, 2026, which complies with the notice requirement of once each week for two weeks; and
WHEREAS, the Municipal Council desires to subordinate the City’s Reverter Right contained in the Agreement and the Deed by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and Subordination Agreement so as to accomplish the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The recitals set forth in this Resolution are hereby incorporated as if fully stated herein.
2. The Mayor and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute a Subordination Agreement with and in favor of GV Investment Group, LLC, a New Jersey Limited Liability Company, P.O. Box 200, Vauxhall, New Jersey 07088 (the “Lender”), in the form attached hereto or such other forms reasonably acceptable to the parties, related to the properties located at 476 15th Avenue, 466 South 14th Street and 464 South 14th Street, Newark, New Jersey and identified on the official tax map of the City of Newark as Block 282, Lot 16 and Block 330, Lots 38 and 39 (“Properties”), which are located in the Central and West Wards, to allow for the new construction of three (3) three-family homes, of which one (1) will be sold and the other two (2) will be for rent, each having (1) unit as affordable rent at 60 - 80% of the Area Median Income (AMI) (“Project”), by Nobre Development, LLC, 160 South Street, Newark, New Jersey 07114 (“Redeveloper”), which is authorized pursuant to Resolution 7R2-h adopted on July 10, 2024.
3. The Mayor and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into a First Amendment to Agreement for the Sale and Redevelopment of Land with Redeveloper in the form attached hereto, related to the Properties for the Project.
4. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land, authorized by and entered into pursuant to Resolution 7R2-h adopted on July 10, 2024, shall remain in full force and effect.
5. Notice in accordance with N.J.S.A. 40:60-51.2 of the subordination of the City’s reverter rights to the Mortgage has been duly given by publication as required by law and holding a public hearing on said resolution at a Meeting of the Municipal Council on October 21, 2026, in the Council Chamber located at City Hall, 920 Mayor Kenneth A. Gibson Boulevard, Newark, New Jersey on October 9, 2026, and October 16, 2026.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a filed copy of the fully executed Subordination Agreement and First Amendment to Agreement for the Sale and Redevelopment of Land with the Office of City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development to subordinate the City’s Reverter Rights through the execution of a Subordination Agreement and a First Amendment to Agreement for the Sale and Redevelopment of Land, in accordance with N.J.S.A. 40:60-51.2, to enable the Redeveloper to obtain financing necessary for the new construction of (3) three-family homes, of which one (1) will be sold and the other two (2) will be for rent, each having (1) unit as affordable rent at 60 - 80% of the Area Median Income (AMI), located at 476 15th Avenue, 466 South 14th Street and 464 South 14th Street, Newark, New Jersey and identified on the official tax map of the City of Newark as Block 282, Lot 16 and Block 330, Lots 38 and 39 (“Properties”), which are located in the Central and West Wards.