Title
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY OF NEWARK (TENANT) AND 169 CLINTON DEVELOPMENT URBAN RENEWAL, LLC, A NEW JERSEY LIMITED LIABILITY COMPANY HAVING AN ADDRESS AT 246 DANFORTH AVENUE, JERSEY CITY, NEW JERSEY 07305 (LANDLORD), PURSUANT TO N.J.S.A. 40A:12-3, 5, AND 15 TO LEASE THE PORTION OF THE BUILDING AS SHOWN ON THE FLOOR PLANS ATTACHED TO THE LEASE AGREEMENT AS EXHIBIT B, LOCATED AT 169 CLINTON AVENUE, IN THE CITY OF NEWARK, ESSEX COUNTY, NEW JERSEY, KNOWN AND DESIGNATED ON THE TAX MAP OF THE CITY OF NEWARK AS BLOCK 2588, LOT 20, TO ACCOMMODATE THE CITY’S PUBLIC PURPOSE OF PROVIDING HOUSING FOR A SIGNIFICANT HOMELESS POPULATION IN THE CITY OF NEWARK TO ENSURE THEIR HEALTH, SAFETY, AND WELLNESS, FOR A PERIOD OF FIFTEEN (15) YEARS COMMENCING ON MARCH 1, 2025, WITH TWO (2) OPTIONAL RENEWAL TERMS, THE FIRST RENEWAL TERM SHALL BE FOR AN ADDITIONAL PERIOD OF TEN (10) YEARS AND A SECOND OPTIONAL RENEWAL TERM SHALL BE FOR AN ADDITIONAL PERIOD OF SEVEN (7) YEARS, AS PER THE TERMS AND CONDITIONS OF THE LEASE AGREEMENT, AT AN APPROXIMATE ANNUAL RENTAL NOT TO EXCEED $0.00 FOR THE FIRST TWO (2) YEARS AND ESCALATING TO AN APPROXIMATE ANNUAL RENTAL NOT TO EXCEED $3,992,130.48 IN YEAR TEN (10).
Failed 6PSF-f 040225
Deferred 6SF-a 041625
Deferred 6SF-a 050725
Deferred 6SF-a 052125
body
WHEREAS, on July 7, 2023, the City’s Qualified Purchasing Agent declared an emergency with 169 Clinton Development Urban Renewal, LLC, 246 Danforth Avenue, Jersey City, New Jersey 07305, for temporary shelter services of a significant portion of building located at 169 Clinton Avenue, Newark, NJ 07108 (the “Building”), to ensure the health, safety, and wellness of a significant homeless population in the City of Newark; and
WHEREAS, the City of Newark Municipal Council extended the emergency shelter declaration several times thereafter as it did not have any alternative location to house the homeless population; and
WHEREAS, pursuant to Newark Municipal Code 2:4-16, the City of Newark reviewed its inventory of city owned property, and determined that it does not have space within any city owned property that can adequately accommodate housing for a significant homeless population in the City of Newark to ensure their health, safety, and wellness; and
WHEREAS, to come to a more permanent solution for the City to continue to house a significant portion of the homeless population, the City of Newark (the “Tenant”) is desirous of leasing a portion of Building (the “Premises”) as set forth in greater detail in Exhibit B to a lease agreement between the Landlord and Tenant (“Lease Agreement”), attached hereto as Exhibit A, from 169 Clinton Development Urban Renewal, LLC, (“Landlord”), since it was determined that the Building satisfied the homeless housing needs and is the best fit to ensure the health, safety, and wellness of a significant homeless population in the City of Newark; and
WHEREAS, the Tenant desires to have the Landlord perform, at its sole cost and expense, all those the necessary alterations and improvements to the Premises as described in greater detail in Schedule A of the Lease Agreement, so that the Premises can serve as housing for a significant homeless population within the City; and
WHEREAS, the parties desire to enter into a Lease Agreement of the Premises commencing on March 1, 2025 for a period of fifteen (15) years, with two (2) optional renewal terms, the first optional renewal term shall be for an additional period of ten (10) years and a second optional renewal term shall be for an additional period of seven (7) years; and
WHEREAS, the City is authorized to acquire property by lease, pursuant to the Local Lands and Buildings Law, N.J.S.A. 40A:12-3, 5, and 15 upon passage of an ordinance; and
WHEREAS, the City wishes to enter into a Lease Agreement with the Landlord to lease the Premises pursuant to the terms and conditions as set forth in Exhibit A, attached hereto and made a part of this Ordinance; and
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Section 1. The Mayor and/or his designee(s), the Business Administrator, are hereby authorized to enter into and execute a Lease Agreement, in substantially the form attached hereto as Exhibit A, on behalf of the City of Newark (Tenant) with, 169 Clinton Development Urban Renewal, LLC, a New Jersey limited liability company having an address at 246 Danforth Avenue, Jersey City, New Jersey 07305 (Landlord), pursuant to N.J.S.A. 40A:12-3 & 5, to lease the portion of the Building as shown on the floor plans attached to the Lease Agreement as Exhibit B (the “Premises”), located at 169 Clinton Avenue, in the City of Newark, Essex County, New Jersey, known and designated on the Tax Map of the City of Newark as Block 2588, Lot 20 (“Building”), as set forth in greater detail in the Lease Agreement, to accommodate the City’s public purpose of providing housing for a significant homeless population in the City of Newark to ensure their health, safety, and wellness.
Section 2. The Mayor and/or his designee(s), the Business Administrator, are hereby authorized to enter into and execute any additional documents necessary to effectuate the terms of the Lease Agreement.
Section 3. The term of this lease shall be for the period of for a period of fifteen (15) years commencing on March 1, 2025, with two (2) optional renewal terms, the first optional renewal term shall be for an additional period of ten (10) years and a second optional renewal term shall be for an additional period of seven (7) years, as per the terms and conditions of the Lease Agreement, at an approximate annual rental not to exceed $0.00 for the first two (2) years and escalating to an approximate annual rental not to exceed $3,992,130.48 in year ten (10).
Section 4. There shall be no advance payment on this lease.
Section 5. A copy of the Lease Agreement and Landlord’s Work of the necessary alterations and improvements to the Premises are attached hereto and made a part hereof.
Section 6. Lessor and Lessee agree that this Lease Agreement is subject to the Lessee’s annual appropriation of sufficient funds to meet the obligations under the Lease, as set forth in greater detail in Section 38 of the Lease Agreement.
Section 7. This Lease Agreement is in compliance with the prerequisite for leasing private space, set forth in the City of Newark Municipal Code 2:4-16, as suitable space under the control of the City of Newark is not available.
Section 8. The Lease Agreement is ratified from March 1, 2025 until the date of adoption of this authorizing Ordinance.
Section 9. A copy of the Lease Agreement and this Ordinance approving the same shall be permanently filed in the Office of the City Clerk by the Business Administrator.
Section 10. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
Ordinance authorizing the Mayor and/or his designee(s), the Business Administrator, to enter into and execute a Lease Agreement, in the form attached hereto as Exhibit A, with 169 Clinton Development Urban Renewal, LLC, a New Jersey limited liability company having an address at 246 Danforth Avenue, Jersey City, New Jersey 07305 (Landlord), pursuant to N.J.S.A. 40A:12-3 & 5, to lease the portion of the Building as shown on the floor plans attached hereto as Exhibit B, located at 169 Clinton Avenue, in the City of Newark, Essex County, New Jersey, known and designated on the Tax Map of the City of Newark as Block 2588, Lot 20, to accommodate the City’s public purpose of providing housing for a significant homeless population in the City of Newark to ensure their health, safety, and wellness, for a period of fifteen (15) years commencing on March 1, 2025, with two (2) optional renewal terms, the first renewal term shall be for an additional period of ten (10) years and a second optional renewal term shall be for an additional period of seven (7) years, as per the terms and conditions of the Lease Agreement, at an approximate annual rental not to exceed $0.00 for the first two (2) years and escalating to an approximate annual rental not to exceed $3,992,130.48 in year ten (10).