Title
Dept/ Agency: Economic and Housing Development Department
Action: ( ) Ratifying ( x ) Authorizing ( x ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amended to Agreement for the Sale and Redevelopment of Land to Broadbelt CMGC, LLC, to amend the Scope of the Project and Extend the Project Schedule/Completion Date
Entity Name: Broadbelt CMGC, LLC
Entity Address: 25 Clifton Avenue, Suite D2204, Newark, New Jersey 07104
Sale Amount: $67,375.00
Cost Basis: (X) $7.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $198,900.00
Appraised Amount: N/A
Contract Period: Pursuant to Exhibit B of the First Amended Agreement for the Sale and Redevelopment of Land
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)
20 9th Avenue/Block 1856/Lot 7/West Ward
338 Orange Street/Block 2848/Lot 6/Central Ward
13 Hecker Street/Block 2848/Lot 11/Central Ward
15 Hecker Street/Block 2848/Lot 12/Central Ward
Additional Information:
body
WHEREAS, on September 24, 2019, the Newark Municipal Council adopted Resolution 7R2-b (s)(“Original Resolution”), which 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 (“Original Redevelopment Agreement”), for the sale of the following City owned property (the
|
ADDRESS |
WARD |
BLOCK |
LOT |
|
|
|
20 9TH AVENUE |
WEST |
1856 |
7 |
|
|
|
338 ORANGE STREET |
CENTRAL |
2848 |
6 |
|
|
|
13 HECKER STREET |
CENTRAL |
2848 |
11 |
|
|
|
15 HECKER STREET |
CENTRAL |
2848 |
12 |
|
|
to Broadbelt CMGC, LLC, 25 Clifton Avenue, Suite D2204, Newark, New Jersey 07104 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the West and Central Wards, no longer needed for public use, in accordance with the Second Amendment to the West Ward Redevelopment Plan pursuant to Ordinance 6S&FC(s) and the First Amendment to the Central Ward Redevelopment Plan pursuant to Ordinance 6S&Fe(s) adopted by the Newark Municipal Council on August 17, 2005, as amended, which governs the redevelopment of City-owned properties located within the West and Central Wards, in the amount of Sixty Seven Thousand Three Hundred Seventy Five Dollars and Zero Cents ($67,375.00), to redevelop the Properties into two (2) two family homes on the vacant lots and constructing an apartment building containing up to twelve (12) residential units (“Scope of Project”); and
WHEREAS, on April 29, 2021, the City and Redeveloper fully executed the Original Redevelopment Agreement and the Properties were transferred to Redeveloper; and
WHEREAS, Redeveloper was unable to develop the Properties in accordance with the Original Redevelopment Agreement due to zoning changes within the City,; and
WHEREAS, Redeveloper is requesting the following amendment to the Scope of Project in the Original Redevelopment Agreement:
• 20 9th Avenue: construction of a two-family home;
• 38 Orange Street: development of a multi-story residential building consisting of up to 16 units ;
• 15 Hecker Street: redevelop a single-family home; and
• 13 Hecker Street: development of a multi-family residential building consisting of up to 16 units (collectively, the “Amended Project”); and
WHEREAS, the Redeveloper is also requesting an extension of the Project Schedule/Completion Date of the Amended Project; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development has reviewed and approved the Amended Project, and amended Project Schedule/Completion Date, and recommends that Newark Municipal Council authorize the execution of the First Amended Agreement for the Sale and Redevelopment of Land with Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council finds that the Amended Project, as that term is defined herein, is in the best interest of the City of Newark and that there is good cause to extend the Project Schedule/Completion Date pursuant to the schedule affixed to the Amended Agreement; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution and enter into the Amended Agreement in order to memorialize the terms and conditions of the sale and redevelopment of the Properties, to include the Amended Project, and the Project Schedule/Completion Date, 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. The Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, are hereby authorized to enter into and execute the First Amended Agreement for the Sale and Redevelopment of Land by and Between the City of Newark and Broadbelt CMGC, LLC (the “Amended Agreement), in substantially the form attached hereto as Exhibit A, to extend the Project Schedule/Completion Date, and amend the Scope of Project from construction of two - two family homes on vacant lots and construction of an apartment building containing up to twelve (12) residential units to the following:
• 20 9th Avenue: construction of a two-family home;
• 38 Orange Street: development of a multi-story residential building consisting of up to 16 units ;
• 15 Hecker Street: redevelop a single-family home; and
• 13 Hecker Street: development of a multi-family residential building consisting of up to 16 units (collectively, the “Amended Project”).
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 Amended Agreement and may enter into any related documents, which may be necessary in order to effectuate the Amended Agreement.
3. The executed Amended 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.
4. The Deputy Mayor/Director of 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 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.
5. 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 for the Sale and Redevelopment of Land 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 Acting Deputy Mayor/Director of Department of Economic and Housing Development agrees in writing to extend this thirty (30) day period.
6. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land, authorized and entered into pursuant to Resolution 7R2-B(s) adopted by the Newark Municipal Council on September 24, 2019, shall remain in full force and effect.
STATEMENT
This Resolution authorizes the Mayor and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a First Amended Agreement for the Sale and Redevelopment of Land with Broadbelt CMGC, LLC, 25 Clifton Avenue, Suite D2204, Newark, New Jersey 07104, to amend the Scope of Project and provide an extension of the Project Schedule/Completion Date.