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 Springfield Blossom, LLC to amend the scope of the Project.
Entity Name: Springfield Blossom, LLC
Entity Address: 1212 Springfield Avenue, Irvington, New Jersey 07111
Sale Amount: $110,015.55
Cost Basis: (X) $9.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $207,400.00
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)
626-638 Springfield Avenue/Block 363/Lot 8.02/South Ward
Additional Information:
Resolution 7R2-h adopted on January 10, 2024 authorized the Private Sale, pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes a First Amendment to the Agreement for the Sale of Land and Redevelopment to amend the scope of the Project.
body
WHEREAS, on January 10, 2024, the Newark Municipal Council adopted Resolution 7R2-h (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 property (the “Property”) to Springfield Blossom, LLC, 1212 Springfield Avenue, Irvington, New Jersey 07111 (“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 One Hundred Ten Thousand Fifteen Hundred Dollars and Fifty Five Cents ($110,015.55), for the new construction of a twenty nine (29) unit affordable apartment building for seniors with a parking lot (“Project”):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
626-638 Springfield Avenue South 363 8.02 179.5X68.1 12,223.95
Total Square Footage: 12,223.95
Total Purchase Price: $110,015.55 ($9.00 per sq. ft.); and
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Property, pursuant to the Agreement and commence the Project on the Property, it has not been successful due to unrealized funding commitments required for the acquisition of the Property; and
WHEREAS, as a result, the Property was not transferred to Redeveloper and the Redeveloper is requesting an amendment of the Project Scope in the Agreement to the construction of a three-story, nineteen (19) unit affordable building with associated parking and a common amenity area (“Amended Project”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Project 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 Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Project, as that term is defined herein, is in the vital and best interests of the City of Newark (“City”) and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to approve the sale of the Property and to change the purpose of the sale to reflect the Amended Project and enter into the Amended Agreement in order to memorialize the terms and conditions of the sale and redevelopment of the Property, 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-h, adopted on January 10, 2024 (“Original Resolution”) and the Agreement for the Sale and Redevelopment of Land (“Original Agreement”) are hereby amended to change the purpose of the sale from the new construction of a twenty nine (29) unit affordable apartment building for seniors with a parking lot to new construction of a three (3) story, nineteen (19) unit affordable building with associated parking and a common amenity area.
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are 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 hereto as Exhibit A, with Springfield Blossom, LLC, 1212 Springfield Avenue, Irvington, New Jersey 07111 (the “Redeveloper), for the private sale and rehabilitation of the following Property, 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, to amend the Project Scope to allow for the construction of a three-story, nineteen (19) unit affordable building with associated parking and a common amenity area (“Amended Agreement”):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
626-638 Springfield Avenue South 363 8.02 179.5X68.1 12,223.95
Total Square Footage: 12,223.95
Total Purchase Price: $110,015.55 ($9.00 per sq. ft.).
3. All other terms and conditions of 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 Property. Said Quitclaim Deed conveying title to the Property 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 Springfield Blossom, LLC, 1212 Springfield Avenue, Irvington, New Jersey 07111 (“First Amendment”), for the private sale and rehabilitation of the following Property, 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 First Amendment and the South Ward Redevelopment Plan, as amended to the construction of a three-story, nineteen (19) unit affordable building with associated parking and a common amenity area:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
626-638 Springfield Avenue South 363 8.02 179.5X68.1 12,223.95
Total Square Footage: 12,223.95
Total Purchase Price: $110,015.55 ($9.00 per sq. ft.).