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 Sale and Redevelopment of Land Between the City of Newark and Kawaida Towers JV Partners, LLC
Entity Name: Kawaida Towers JV Partners, LLC
Entity Address: 8 Lombardy Street, Suite 320, Newark, New Jersey 07102
Contract Amount: $500,000.00
Funding Source:
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP (X ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
17-21 Halsey Street/Block 20/Lot 1/Central Ward
Additional Information:
body
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) adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Redevelopment Law; and
WHEREAS, on January 21, 2009, pursuant to Ordinance 6PSF-a, the Municipal Council of the City adopted the Broad Street Station Redevelopment Plan (“Redevelopment Plan”); and
WHEREAS, the City is the owner of certain real property designated as Block 20, Lot 1, as shown on the official tax map of the City (collectively, the “Property” or “Project Area”) within the Redevelopment Plan area; and
WHEREAS, on November 4, 2025, the City issued a Request for Qualifications (“RFQ”) for prospective redevelopers for the Kawaida Towers Redevelopment Project within the Redevelopment Plan area; and
WHEREAS, Heritage Company, LLC, in partnership with Poeima Partners II, LLC, (the “Redeveloper”) responded with a proposal to develop a 10-story mixed-use affordable housing development containing approximately thirty-one (31) residential units and community-serving uses (the “Project”) upon the Property; and
WHEREAS, on November 21, 2025, the City received six (6) qualified responses, and all submissions were reviewed and evaluated; and
WHEREAS, upon review and scoring with the RFQ rubric, the selection committee determined that it was in the City’s best interest to invite a shortlist of finalists to advance to the final state of the qualification process; and
WHEREAS, finalist presentations were held on January 8, 2026, during which development teams presented their proposed development approach, execution, strategy, affordability framework, and community commitments; and
WHEREAS, based upon the City’s evaluation of qualifications, presentations, and comparative analysis, the City announced that the Redeveloper was conditionally selected as the redeveloper of the Kawaida Towers Redevelopment Project within the Redevelopment Plan area subject to its entry into a Redevelopment Agreement; and
WHEREAS, Redeveloper intends to acquire fee simple title to the Property to develop the Project; and
WHEREAS, the Redeveloper will implement the development, design, financing and construction of the Project in conformity with the Redevelopment Plan, the Redevelopment Agreement, and in accordance with the Redevelopment Law; 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 Redevelopment 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 Redeveloper acknowledges that all uses to which the Project may be devoted are guided and controlled by the applicable 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; and
WHEREAS, on February 11, 2026, Redeveloper formed a Domestic Limited Liability Company in accordance with New Jersey State Law called Kawaida Towers JV Partners, LLC, which is the entity that will enter into the Redevelopment Agreement with the City and serve as the Redeveloper for the project.
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 Agreement for the Redevelopment of Land by and Between the City of Newark and Kawaida Towers JV Partners, LLC (the “Redevelopment 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 Redevelopment Agreement and may enter into any related documents, including a Funding Agreement, which may be necessary in order to effectuate the Redevelopment Agreement.
3. The executed Redevelopment 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 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.
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 Kawaida Towers JV Partners, LLC with an address of 8 Lombardy Street, Suite 320, Newark, New Jersey 07102 for the redevelopment of the property identified on the City of Newark Tax Map Block 20, Lot 1.