Title
Dept/ Agency: Economic and Housing Development Department
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 Between the City of Newark and Inner City Development Group, LLC
Entity Name: Inner City Development Group, LLC
Entity Address: 216 Goldsmith Avenue, Newark, New Jersey 07112
Contract Amount: $55,080.00
Funding Source: Inner City Development Group, LLC]
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)
146-148 Fabyan Place/Block 3083/Lot 19/South Ward
150-152 Fabyan Place/Block 3083/Lot 20/South Ward
Resolution 7R2-b, adopted on October 21, 2020, authorized the Private Sale/Redevelopment, pursuant to the Agreement for the Sale and Redevelopment of Land
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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”), provides a process for municipalities to participate in the redevelopment and improvement of areas in need of redevelopment; and
WHEREAS, pursuant to N.J.S.A. § 40A: 12A-8(f), the City of Newark (the “City”) is authorized to arrange or contract with redevelopers for the planning, replanning, construction or undertaking of any redevelopment project; and
WHEREAS, pursuant to N.J.S.A. § 40A:12A-8(g), the City may "convey property…without public bidding and at such prices and upon such terms as it deems reasonable”; and
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7Rdo(AS) adopted by the Municipal Council on June 15, 2005, the entire City of Newark was designated as an area in need of rehabilitation pursuant to the Redevelopment Law; and
WHEREAS, the Municipal Council of the City of Newark (the “Municipal Council”) then approved the South Ward Redevelopment Plan, including any amendments, for the Redevelopment Area within which the Properties are located (the “Redevelopment Plan”); and
WHEREAS, the City previously determined that the Property was no longer needed for any public use and that redevelopment of the Properties would contribute to the social and economic improvement of the South Ward in accordance with the intent, goals and objectives of the City’s strategy to rehabilitate and reinvigorate neighborhoods with quality housing, additional stores, services, recreational facilities, and improved public spaces; and
WHEREAS, Inner City Development Group, LLC (“Redeveloper”) submitted a letter of intent to the City’s Department of Economic and Housing Development outlining its intention to redevelop the Properties; and
WHEREAS, based upon the City’s review of the Proposal and other information, the City determined that the Redeveloper possessed the proper qualifications, financial resources and the capacity to acquire and redevelop the Properties; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the Department of Economic and Housing Development previously recommended that the City sell the Properties to the Redeveloper for the consideration of Fifty-Five Thousand Eighty Dollars and Zero Cents ($55,080.00) (“Purchase Price’), which price, under such terms as, the City deems to be reasonable, for the purpose of redeveloping the Properties, in accordance with the Act, this Agreement, and the Redevelopment Plan; and
WHEREAS, on October 21, 2020, by way of Resolution 7R2-b, the City authorized the sale of Block 3083, Lots 19 and 20 to the Redeveloper and the execution of an Agreement for the Sale of Land and Redevelopment to memorialize the terms and conditions of the sale and redevelopment of the Property and construction of the Project (the “Original Redevelopment Agreement”) (See Exhibit A); and
WHEREAS, on September 2, 2021, the City and Redeveloper fully executed the Original Redevelopment Agreement; and
WHEREAS, Redeveloper completed the rehabilitation of the property 150-152 Fabyan Place, Block 3083, Lot 20, under the Original Redevelopment Agreement and was issued a Certificate of Completion; and
WHEREAS, on November 7, 2021, there was a fire at the property 146-148 Fabyan Place, Block 3083, Lot 19, which caused a delay in the rehabilitation of that property under the Original Redevelopment Agreement; and
WHEREAS, on September 19, 2024, Redeveloper sent counsel for the City a letter containing the following: (i) a request for an extension of the Project Deadlines contained in the Redevelopment Agreement, and (ii) an explanation regarding Redeveloper’s inability to meet the Project Deadlines (as set forth in the preceding paragraph); and
WHEREAS, the City finds that there is good cause to extend all Project Deadlines pursuant to the schedule affixed to the First Amendment of the Agreement for the Sale and Redevelopment of Land by and Between the City of Newark and Inner City Development Group, LLC (the “Amended Agreement”), a copy of which is enclosed herewith in a form substantially consistent with Exhibit A; and
WHEREAS, Inner City Development Group, LLC acknowledges that should it fail to meet any of the deadlines contained in the Amended Agreement, the City will exercise its reversionary rights to the Property pursuant to Article V, Section 3 of the Original Redevelopment Agreement, without any further notice to Redeveloper, absent the notice requirements for service of process under the New Jersey Court Rules; and
WHEREAS, the Parties have engaged in negotiations relative to the Project and Project Deadlines, and the City has determined that in furtherance of the goals and objectives of the Redevelopment Plan, it is in the City’s best interest to enter into the Amended Agreement with Inner City Development Group, LLC; and
WHEREAS, the City previously determined that Redeveloper possesses the proper qualifications, financial resources, and capacity to implement and complete the rehabilitation of the Property in accordance with the Redevelopment Plan, and all other applicable laws, ordinances and regulations; and
WHEREAS, the City and Redeveloper desire to enter into Amended Agreement in order to memorialize the terms and conditions of the redevelopment of the Property; and
WHEREAS, the Amended Agreement shall supersede any previous agreement(s) or conditions related to the redevelopment of the Property.
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, hereby: authorize the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development to enter into the First Amendment of the Agreement for the Sale and Redevelopment of Land by and Between the City of Newark and Inner City development Group, LLC (the “Amended Agreement), in substantially the form attached hereto as Exhibit A.
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.
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 an amended redevelopment agreement with Inner City Development Group, LLC, with an address of 216-218 Goldsmith Avenue, Newark, New Jersey for the redevelopment of the property identified on the City of Newark Tax Map Block 3083, Lot 19 in order to permit them addition time to complete their development.