Title
Dept./ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Subordination and Intercreditor and Estoppel Agreements
Purpose: Issuance of Estoppel Certificate and Subordination Intercreditor Agreement.
Entity Name: Two Center Street Urban Renewal, L.L.C.
Entity Address: c/o Dranoff Properties, Inc., 755 South Broad Street, Philadelphia, Pennsylvania 19147
Sale Amount: $0.00
Cost Basis: ( ) $ PSF ( ) Negotiated ( X ) N/A ( ) Other:
Assessed Amount: $0.00
Appraised Amount: $0.00
Contract Period: Not Applicable
Contract Basis ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
(X) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property: 34-40 Park Place
(Address/Block/Lot/Ward)
Block 125, Lot 26/ Central Ward
Additional Information:
Ordinance 6PSF-h adopted on July 7, 2016, authorized the execution of an Amended Restated Financial Agreement.
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WHEREAS, pursuant to Ordinance 6PSF-h adopted on July 7, 2016, the Municipal Council granted 20 year tax abatement to Two Center Street Urban Renewal, L.L.C. (the “URE”), under the provisions of the Long Term Tax Exemption Law as amended and supplemented, N.J.S.A. 40A:20-1, et seq. (the "Long Term Tax Exemption Law"), for a project to construct a 22-story mixed used rental residential, office, and retail project, located at 34-40 Park Place and identified on the Official Tax Map of the City of Newark, as Block 125, Lot 26 (the “Project”); and
WHEREAS, on or about August 29, 2016, the City of Newark and Two Center Street Urban Renewal executed an Amended Restated Financial Agreement setting forth the terms and conditions of the tax abatement, a copy of which is attached hereto as “Exhibit A”; and
WHEREAS, the URE is in the process of refinancing its loan for the Project (the “Refinance Loan”) with TPI REIT Capital Funding LLC (the “Refinance Lender”); and
WHEREAS, as a condition of the above Refinance Loan, the Refinance Lender has requested that the City issue an Estoppel Certificate and Subordination Intercreditor Agreement certifying the status of the Financial Agreement, copies of which is attached hereto as “Exhibit B”; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development determined that the Project is in the best interest of the City and recommends that the City execute and deliver the Estoppel Certificate and Subordination Intercreditor Agreement so that the parties can close on its loan.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, is hereby authorized, empowered and directed to execute the Estoppel Certificate and Subordination Intercreditor Agreement, in substantially the forms attached hereto as “Exhibit B”.
2. The Subordination Intercreditor Agreement is ratified from December 29, 2025, until the date of adoption of this authorizing resolution.
3. The Estoppel Agreement is ratified from January 20, 2025, until the date of adoption of this authorizing resolution.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place filed copies of the fully executed Estoppel Certificate with the Office of the City Clerk.
STATEMENT
This Resolution authorizes and ratifies the Mayor of the City of Newark and/or designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, to execute and deliver an Estoppel Certificate and Subordination Intercreditor Agreement to enable the Two Center Street Urban Renewal, L.L.C., to refinance its loan for the Project located at 34-40 Park Place and identified on the Official Tax Map of the City of Newark, as Block 126 Lot 26 (Central Ward).
Exhibit A
Amended Restated Financial Agreement
Exhibit B
Estoppel Certificate and Subordination Intercreditor Agreement