Title
[Enter Text Here]Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Transfer Application for Long-Term Tax Abatement
Purpose: Assignment and Assumption of the Financial Agreement governing the Project from the Assignor to the Assignee
Entity Name: Villa Victoria Urban Renewal, L.L.C.
Entity Address: 719 St. James Place, East Windsor, New Jersey 18520-4630
Abatement Period: Term of tax abatement remaining years upon transfer expiring on September 30, 2018.
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
2-54 Cutler Street /Block 474/ Lot 1/Central Ward
Additional Information:
Original tax abatement granted by Resolution 7RSA 092678
body
WHEREAS, on September 26, 1978, the Newark Municipal Council adopted Resolution 7RSA granting a long term tax abatement to St. Lucy's Development Corporation - Villa Victoria, Inc. ("St. Lucy's")., a New Jersey limited dividend partnership, under the Limited Dividend Non-Profit Housing Corporations or Associations law, N.J.S.A. 55:16-1 et seq. (the "Limited Dividend Law") for an affordable housing project located at 2-54 Cutler Street and designated as Block 474, Lot 1 on the Official Tax Map of the City of Newark (the "Project"); and
WHEREAS, as authorized under Resolution 7RSA 092678, the City entered into a Financial Agreement with St. Lucy's governing the tax abatement for the Project (the "Financial Agreement"); and
WHEREAS, on October 4, 1979, the City, St. Lucy's and Villa Victoria Associates, LTD ("Victoria Associates") entered into that certain Assignment and Assumption of Tax Agreement whereby St. Lucy's assigned all of its rights in and to the Financial Agreement to Victoria Associates (the "Original Assignment Agreement"); and
WHEREAS, on or about May 29, 2013, with the approval and consent of the New Jersey Housing and Mortgage Finance Agency, as successor in interest to the New Jersey Housing Finance Agency (the "Agency") and the Public Housing Development Authority within the New Jersey Department of Community Affairs ("DCA"), and subject to certain terms and conditions required by the Agency and DCA, Victoria Associates conveyed ownership of the Project to Villa Victoria Housing, L.L.C.; and
WHEREAS, as a condition of the conveyance, the Agency and DCA required the recordation in the Office of the Essex County Register of an instrument entitled "Deed Restriction and Regulatory Agreement - Villa Victoria, HMFA #793" (the "Deed Restriction"); and
WHEREAS, the Deed Restriction was recorded on May 31, 2013 in Book 12437 at Page 109, as Instrument No. 13048395; and
WHEREAS, the Deed Restriction by its terms substitutes for and supersedes the "First Mortgage" (as defined in the Deed Restriction, referred to in the Financial Agreement as the "first mortgage"), and perpetuates certain Agency requirements applicable to the Project, including but not limited to the continued applicability of the Limited Dividend Law to the Project and Villa Victoria Housing, L.L.C., notwithstanding the conveyance of the Project; and
WHEREAS, subsequent to the conveyance and the recording of the Deed Restriction, Villa Victoria Housing, L.L.C. amended its Certificate of Formation and duly qualified as an "urban renewal entity", as that term is defined in the Long Term Tax Exemption Law, N.J.S.A. 40A:20 - 3(g) and 5, and in connection therewith changed its name to "Villa Victoria Urban Renewal, L.L.C." ("Victoria URE"); and
WHEREAS, Victoria URE has filed an application with the City requesting that the City consent nunc pro tunc to the above-described conveyance previously approved by the Agency and DCA, and that the City further consent to an assignment of the Financial Agreement to Victoria URE, as Assignee, and Victoria URE's assumption thereof; and
WHEREAS, the City has reviewed the application filed by Victoria URE and has determined that Victoria URE is a duly-authorized urban renewal entity that has the capacity and experience to own and operate the Project and to assume all of the rights and obligations of the Victoria Associates under the Financial Agreement; and
WHEREAS, the Municipal Council wishes to adopt this resolution in order to reflect the City's consent to the conveyance of the Project and of the transfer of the Financial Agreement to Victoria URE and to authorize the Mayor to execute, on behalf of the City, an Assignment and Assumption Agreement between the City, Victoria Associates and Victoria URE.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City hereby consents, nunc pro tunc, to (i) the conveyance of the affordable housing project located at 2-54 Cutler Street and designated as Block 474, Lot 1 on the Official Tax Map of the City of Newark (the "Project") by Villa Victoria Associates, LTD (the "Assignor") to Villa Victoria Urban Renewal, L.L.C., 719 St. James Place, East Windsor, New Jersey 18520-4630 (the "Assignee"), and to (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee.
2. The Municipal Council hereby authorizes the Mayor to execute, on behalf of the City, the Consent to Transfer and Assignment and Assumption Agreement of Financial Agreement between the City, the Assignor, and the Assignee (the "Assignment Agreement") in the form attached hereto.
3. The long term tax abatement for the Project will expire on September 30, 2018 and will remain in effect until that date provided that the Assignee complies with all applicable State statutes, City Ordinances and Resolutions and terms of the Assignment Agreement and Financial Agreement. This Resolution will not extend the period of the tax abatement beyond the date of expiration.
4. The Assignee shall pay all outstanding amounts due to the City, including without limitation, all water and sewer charges and all other amounts due under the Financial Agreement, within thirty (30) days of the adoption of this resolution.
5. The Assignment Agreement, once fully executed, shall be filed by the Deputy Mayor/Director of the Department of Economic and Housing Development with the Office of the City Clerk.
6. This resolution shall take effect immediately.
STATEMENT
This resolution memorializes the City's consent, nunc pro tunc, to (i) the conveyance of the affordable housing project at 2-54 Cutler Street and designated as Block 474, Lot 1 on the Official Tax Map of the City of Newark (the "Project") by Villa Victoria Associates, LTD (the "Assignor") to Villa Victoria Urban Renewal, L.L.C., 719 St. James Place, East Windsor, New Jersey 18520-4630 (the "Assignee"), and to (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee. This resolution also authorizes the Mayor to execute, on behalf of the City, an Assignment and Assumption Agreement with the Assignor and the Assignee in the form attached to the resolution. Central Ward