Title
Dept/ Agency: Economic and Housing Development Department
Action: ( ) Ratifying ( x ) Authorizing ( x ) Amending
Type of Service: Redevelopment Agreement
Purpose: Authorize Execution of an Agreement for the Redevelopment of Land Between the City of Newark and Thomas-Carter Village Urban Renewal, LLC and a Termination of Use Restriction/Restatement of Reverter Agreement between the City of Newark, the New Jersey Department of Transportation, and Thomas-Carter Village Urban Renewal, LLC
Entity Name: Thomas-Carter Village Urban Renewal, LLC
Entity Address: 60 Bergen Avenue, Teaneck, New Jersey 07666
Contract Amount: N/A
Funding Source:
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 Property:
(Address/Block/Lot/Ward)
103-109 Sussex Avenue/Block 2853/Lot 1.02/Central Ward
111-119 Sussex Avenue/Block 2853/Lot 69/Central Ward
Additional Information:
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WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the “Redevelopment Law”), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7Rdo(AS) 061505 adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Redevelopment Law; and
WHEREAS, Thomas-Carter Village Urban Renewal, LLC (the “Redeveloper”) intends to construct a five-story brick and masonry building consisting of one hundred ninety-six (196) market rate rental units, sixteen (16) affordable housing rental units, 2,092 square feet of commercial space, and 2,092 square feet of community space and develop an asphalt surface lot with sixty-six (66) parking spaces (“the Project”) on Block 2853, Lots 1.02 and 69 on the official tax map of the City of Newark (the “Property”); and
WHEREAS, pursuant to Deed dated January 29, 2003, and recorded in the Office of the Essex County Clerk (the “Clerk”) on April 25, 2003, the New Jersey Department of Transportation conveyed properties shown on the City of Newark Tax Map as Block 2853, Lots 1, 3, 4, 37, 44, 62, 74, 78, and 79 to the City (collectively referred to as “the Original Properties”); and
WHEREAS, the City and Vision of Hope Community Development Corporation (“VOH”), a New Jersey non-profit corporation having its principal place of business at 195 West Market Street, Newark, New Jersey entered into a Contract for the Private Sale of Land for Redevelopment (the "Prior Redevelopment Agreement") through which the City sold the Original Properties to VOH for the purchase price of $215,000.00 with the intent that VOH would construct on the Original Properties a community-based family life center that provided social services, financial services, educational services, training services, and transitional and substance abuse support services to the general public; and
WHEREAS, the Prior Redevelopment Agreement contained a Right of Reverter for the benefit of the City that may be exercised if the agreement was terminated as a result of certain itemized events; and
WHEREAS, the City conveyed the Original Properties to VOH through a deed dated April 25, 2003 and recorded on that same date, which stated, among other things, that the conveyance was subject to the terms and conditions set forth within Ordinance 6S&FA120902; and
WHEREAS, on August 24, 2009 and December 10, 2012, the Central Planning Board of the City approved a site plan, as amended, filed by VOH, for the construction of a charter school to be operating as The Friends of Marion P. Thomas Charter School, Inc. (the “School Redeveloper”) on the Original Properties and for the subdivision of Block 2853, Lot 44; and
WHEREAS, by agreement dated May 16, 2013 by and among VOH, the School Redeveloper, and The New Hope Now Community Development Corporation (“New Hope”), VOH agreed to sell to the School Redeveloper Block 2853, Lots 1, 3, 4, 37, 74, 78, 79 and a portion of Lot 44 (a/k/a/ Lot 1.01) and to sell to New Hope Block 2853, the remaining portion of Lot 44 and Lot 62 (a/k/a Lot 1.02); and
WHEREAS, by agreement executed on or about December 16, 2013 (the “December 16, 2013 Agreement”), the City of Newark, the School Redeveloper, New Hope, and VOH agreed to supersede the Prior Redevelopment Agreement governing the redevelopment of the Original Properties, and to authorize the School Redeveloper to develop a charter school on Block 2853, Lots 1, 3, 4, 37, 74, 78, 79 and a portion of Lot 44, to authorize New Hope to construct a family life center project on Block 2853, Lot 62 and a portion of Lot 44, and to authorize the sale of a City-owned properties located at Block 2853, Lots 8, 10, 12, 14, and 16 to the School Redeveloper to be used for the purposes of the constructing and operating the charter school; this agreement was authorized by Ordinance 6PSF-a(S)072113; and
WHEREAS, the December 16, 2013, Agreement includes a right of reverter in favor of the City, which may be exercised in the event the agreement is terminated due to the occurrence of certain specified events; and
WHEREAS, a Deed Confirming Subdivision and Consolidation dated February 27, 2014, and recorded with the Clerk on March 5, 2014, provided that the conveyance described therein was made subject to a Redevelopment and Property Disposition Agreement entered into among the City of Newark, the School Redeveloper, and New Hope dated December 16, 2013 and the covenants imposed therein; and
WHEREAS, the City, by way of a Corrective Deed between the City and VOH, dated April 11, 2014, and recorded with the Clerk on May 30, 2014, clarified the uses permitted on the Original Properties as (i) the Family Life Center Project, and (ii) the Charter School Project, as those terms are defined in the Redevelopment Agreement, and provided that the conveyance was made subject to the December 16, 2013 Agreement and the covenants imposed therein; and
WHEREAS, pursuant to a Deed dated May 30, 2014, and recorded with the Clerk on May 30, 2014, VOH conveyed the property located at Block 2853, Lot 1.02 to New Hope subject to the Redevelopment Agreement and the covenants imposed therein; and
WHEREAS, the City intended that the School Redeveloper would complete and develop the Charter School Project and New Hope would develop a community-based family life center; and
WHEREAS, the School Redeveloper commenced and completed development of the Charter School Project; and was issued received a Certificate of Occupancy, thereby releasing them from their obligation under the Prior Redevelopment Agreement; and
WHEREAS, New Hope was unable to complete the community-based family life center pursuant to the terms of the Prior Redevelopment Agreement and their financial lending institution commenced a foreclosure action against them; and
WHEREAS, the City and the Redeveloper entered into a Financial Agreement dated June 10, 2021, pursuant to the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq., for the development of a mixed-use project consisting of market rate and affordable housing units, commercial and community space, and associated parking, located at 103-109 and 111-119 Sussex Avenue, Newark, New Jersey, as more particularly described therein; and
WHEREAS, pursuant to two Deeds in Lieu of Foreclosure dated October 7, 2021, and recorded with the Clerk on December 3, 2021, both of which subjected the conveyances to existing zoning ordinances, covenants, easements, and restrictions of record, New Hope conveyed the property located at Block 2853, Lot 1.02 to the Redeveloper; and
WHEREAS, the Redeveloper filed with the City of Newark Central Planning Board (“CPB”) an application seeking approval to construct a five-story brick and masonry building consisting of one hundred ninety-six (196) market rate rental units, sixteen (16) affordable housing rental units, 2,092 square feet of commercial space, and 2,092 square feet of community space in the western corner of the Property along Sussex Avenue and develop the remainder of the Property as an asphalt surface lot with sixty-six (66) parking spaces; and
WHEREAS, the CPB conducted a hearing on February 7, 2022, to consider the Redeveloper’s application, and on February 28, 2022, voted to approve said application; and
WHEREAS, the Redeveloper will implement the development, design, financing and construction of the Project in conformity with the Central Ward Redevelopment Plan; and
WHEREAS, N.J.S.A. 40A:12A-8(e) and (f) of the Redevelopment Law authorize the City to enter into contracts or agreements for the planning, construction or undertaking of any development project or redevelopment work in an area designated as an area in need of rehabilitation; and
WHEREAS, the City and the Redeveloper have engaged in negotiations relative to the Project and the City has determined that in furtherance of goals and objectives of the East Ward Redevelopment Plan and the City’s Master Plan, it is in the City’s best interest to enter into a Redevelopment Agreement with the Redeveloper for the purpose of setting forth in detail each Parties’ respective undertakings, rights and obligations in connection with the development and construction of the Project; and
WHEREAS, the City and the Redeveloper have engaged in negotiations to execute a Termination of Use Restrictions/Restatement of Reverter Agreement (the “Termination and Restatement Agreement”), an agreement terminating the deed restriction currently recorded on the Property, which restricts use of the Property for a public purpose, by and between The State of New Jersey Department of Transportation (the “DOT”) and the City for the benefit of Redeveloper coterminous with the Redevelopment Agreement between the City and the Redeveloper. The City’s execution of the Termination and Restatement Agreement would apply only to the public use restriction and shall not be deemed a relinquishment of the Redeveloper to comply with the covenants and restrictions set forth in the 2013 Redevelopment Agreement and that the City’s Right of Reverter for the Properties shall continue to run with the land and shall continue to be binding on the Redeveloper; and
WHEREAS, the Redeveloper acknowledges that all uses to which the Project may be devoted are guided and controlled by the applicable Central Ward Redevelopment Plan and the Redevelopment Agreement, and that under no circumstances shall the Redeveloper, or any assignee or Affiliate (as defined herein) undertake any development of the Project unless it is in strict accordance with the Redevelopment Law, Applicable Law (as defined herein) and the Redevelopment Agreement.
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, or either of them, are hereby authorized to enter into the Agreement for the Redevelopment of Land by and Between the City of Newark and BV1 678 Doremus Avenue LLC (the “Redevelopment Agreement), in substantially the form attached hereto as Exhibit A.
2. The Mayor and/or the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, are hereby authorized to enter into the Termination of Use Restriction and Restatement of Reverter by and Between the City of Newark, the State of New Jersey, Department of Transportation, and Thomas-Carter Village Urban Renewal, LLC (the “Termination and Restatement Agreement), in substantially the form attached hereto as Exhibit B.
3. 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 Redevelopment Agreement and the Termination and Restatement Agreement and may enter into any related documents which may be necessary in order to effectuate the Redevelopment Agreement.
4. The executed Redevelopment Agreement and Termination and Restatement 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.
5. 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 Redevelopment 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.
6. 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 Redevelopment Agreement for the Redevelopment of Land and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Redevelopment 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.
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 Termination and Restatement Agreement and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Redevelopment 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.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into an Agreement for the Redevelopment of Land with Thomas-Carter Village Urban Renewal LLC, with an address of 60 Bergen Avenue, Teaneck, New Jersey 07102 for the redevelopment of the property identified on the City of Newark Tax Map Block 2853, Lots 1.02 and 69. The resolution also authorizes the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a Termination of Use/Restatement of Reverter Agreement with the State of New Jersey, Department of Transportation and Thomas-Carter Village Urban Renewal, LLC with an address of 60 Bergen Avenue, Teaneck, New Jersey 07102 in connection with the Redevelopment Agreement.
EXHIBIT A
REDEVELOPMENT AGREEMENT
EXHIBIT B
TERMINATION OF USE RESTRICTION/RESTATEMENT
OF REVERTER AGREEMENT