Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: An Agreement to Subordinate the City of Newark’s Reverter Rights by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and a Subordination Agreement in order to permit Redeveloper to obtain financing necessary for the redevelopment of an affordable mid-rise multi-family residential building.
Entity Name: Springview Development Group LLC
Entity Address: 1212 Springfield Avenue, Irvington, New Jersey 07111
Sale Amount: N/A
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: N/A
Appraised Amount: N/A
Contract Period: Not Applicable
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)
569 Springfield Avenue/Block 2618/Lot 1/South Ward
565-567 Springfield Avenue/Block 2618/Lot 3/South Ward
563 Springfield Avenue/Block 2618/Lot 5/South Ward
559-561 Springfield Avenue/Block 2618/Lot 7/South Ward
643 South 11th Street/Block 2618/Lot 12 /South Ward
645 South 11th Street/Block 2618/Lot 13/South Ward
647 South 11th Street/Block 2618/Lot 14/South Ward
649 South 11th Street/Block 2618/Lot 15/South Ward
651 South 11th Street/Block 2618/Lot 16/South Ward
653 South 11th Street/Block 2618/Lot 17/South Ward
Additional Information:
Resolution 7R2-c adopted on October 5, 2022, designating Springview Development Group LLC as the redeveloper and authorizing an Agreement for the Sale and Redevelopment of Land.
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WHEREAS, pursuant to Resolution 7R2-c adopted on October 5, 2022, the Newark Municipal Council (the "Municipal Council") authorized the Mayor and the Deputy Mayor/Director of Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land (“Agreement”) with Springview Development Group LLC (the “Redeveloper”) for the sale of City-owned real property located at 569 Springfield Avenue, 565-567 Springfield Avenue, 563 Springfield Avenue, 559-561 Springfield Avenue, 643 South 11th Street, 645 South 11th Street, 647 South 11th Street, 649 South 11th Street, 651 South 11th Street and 653 South 11th Street, Newark, New Jersey, within the South Ward of the City and identified on the tax map of the City as Block 2618, Lots 1, 3, 5, 7, 12, 13, 14, 15, 16, and 17 (the "Property") for a purchase price of $258,266.00, for the rehabilitation of the Property to develop an affordable mid-rise multi-family residential building (“Project”); and
WHEREAS, the sale and Agreement were authorized pursuant to N.J.S.A. 40A: 12A-8(g) and the South Ward Redevelopment Plan; and
WHEREAS, the Redeveloper has represented that it has secured financing from Citizens Bank, N.A., in the approximate principal amount of $17,936,002.00, and New Jersey Housing and Mortgage Finance Agency, in the approximate principal amount of $5,604,000.00 and $450,000.00 (collectively, the "Lender"), to develop and complete the Project, which loans will be evidenced by a Promissory note in the principal amount of each Loan respectively, and will be secured by a Mortgage on the Property (“Mortgage”); and
WHEREAS, as a condition of the above Loan, the Lender has requested that the City subordinate the Reverter Right to the Lender with respect to the Mortgage and Loan; and
WHEREAS, the Agreement states that the Reverter Right may be subordinated by the City subject to formal approval by the Municipal Council and pursuant to N.J.S.A. 40:60-51.2, which authorizes a municipality to waive, release, modify or subordinate any terms, covenants, conditions, limitations or reverters imposed in sales and conveyances of lands as to the erection, alteration or demolition of buildings or any other use to be made of land heretofore imposed by said municipality to accomplish the purposes for which such lands were sold and conveyed either at public or private sale including those set forth pursuant to Section 21 of P.L.1971, c. 199 (C.40A:12-21), but only after public hearing held before such Governing Body, of the holding of which notice describing the lands in question, and the terms, covenants, conditions, limitations or reverters to be waived, released, modified or subordinated, and, if to be modified or subordinated, describing the manner in which the same shall be modified or subordinated, shall first have been given by advertisement published once each week for two weeks in a newspaper published in said municipality or, if no newspaper be published therein, then in a newspaper circulating in such municipality, provided, however, that the power herein granted shall not be exercised to impair any vested or contractual rights of third parties; and
WHEREAS, the Department of Economic and Housing Development caused a notice to be advertised including the requirements established in N.J.S.A. 40:60-51.2, in the Star Ledger on June 16, 2025 and June 23, 2025, which complies with the notice requirement of once each week for two weeks; and
WHEREAS, the Municipal Council desires to subordinate the City’s Reverter Right contained in the Agreement and the Deed by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and Subordination Agreement so as to accomplish the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The recitals set forth in this Resolution are hereby incorporated as if fully stated herein.
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 a Subordination Agreement with and in favor of Citizens Bank, N.A. and New Jersey Housing and Mortgage Finance Agency (collectively, the "Lender") , in the form attached hereto or such other forms reasonably acceptable to the parties, related to the property located at 569 Springfield Avenue, 565-567 Springfield Avenue, 563 Springfield Avenue, 559-561 Springfield Avenue, 643 South 11th Street, 645 South 11th Street, 647 South 11th Street, 649 South 11th Street, 651 South 11th Street and 653 South 11th Street, Newark, New Jersey, within the South Ward of the City and identified on the official tax map of the City of Newark (“City”) as Block 2618, Lots 1, 3, 5, 7, 12, 13, 14, 15, 16, and 17 (“Property”) to permit the rehabilitation of the Property as an affordable mid-rise multi-family residential building (“Project”), by Springview Development Group LLC (the “Redeveloper”), which is authorized pursuant to Resolution 7R2-c adopted on October 5, 2022 .
3. The Mayor and/or his designee the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into a First Amendment to Agreement for the Sale and Redevelopment of Land with the Redeveloper in the form attached hereto, related to the Property for the Project.
4. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land, authorized by Resolution 7R2-c adopted on October 5, 2022, shall remain in full force and effect and shall be fully executed together with the First Amendment to Agreement for the Sale and Redevelopment of Land authorized herein.
5. Notice in accordance with N.J.S.A. 40:60-51.2, of the subordination of the Lender’s mortgage and the City’s Right of Reverter with respect to the Property has been duly given by publication as required by law and holding a public hearing on said resolution at a Meeting of the Municipal Council on July 2, 2025, in the Council Chamber located at City Hall, 920 Mayor Kenneth A Gibson Boulevard, Newark, New Jersey.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a filed copy of the fully executed Subordination Aagreement and First Amendment to Agreement for the Sale and Redevelopment of Land with the Office of City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute a Subordination Agreement with respect to the City’s Reverter Rights and First Amendment to Agreement for Sale and Redevelopment of Land, to enable the Redeveloper to obtain financing necessary for the development of the property as an affordable mid-rise multi-family residential building located at 569 Springfield Avenue, 565-567 Springfield Avenue, 563 Springfield Avenue, 559-561 Springfield Avenue, 643 South 11th Street, 645 South 11th Street, 647 South 11th Street, 649 South 11th Street, 651 South 11th Street and 653 South 11th Street, Newark, New Jersey, and identified on the official tax map of the City as Block 2618, Lots 1, 3, 5, 7, 12, 13, 14, 15, 16, and 17, which is located in the South Ward.