Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Redevelopment Agreement
Purpose: To authorize execution of a Redevelopment Agreement with Centerpoint 49 Rutherford Urban Renewal, LLC
Entity Name: CenterPoint 49 Rutherford Urban Renewal, LLC
Entity Address: 1808 Swift Drive, Oak Brook, Illinois 60524
Contract Amount: $0.00; The property is not City-owned
Development Agreement Term: Not Applicable
City Contribution to Development Project: ( ) Grant or Loan ( ) Guarantee
(X) None ( ) Other: ( )
Developer Investment: (N/A)
Developer Third-Party Financing
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)
17-89 Rutherford Street/Block 5050.01/Lot 15/East Ward
91-127 Rutherford Street/Block 5056/Lot 26/East Ward
Additional Information:
This Redevelopment Agreement was contemplated in a Settlement Agreement approved by the Municipal Council by Resolution 7R6-b adopted on April 7, 2020.
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WHEREAS, on November 6, 1963, the Municipal Council adopted Resolution 7Rf designating an area known as the Industrial River Urban Renewal Project Area (the “Industrial River U.R.A.”) as a “Blighted Area” under the former Blighted Areas Act, and on June 18, 1964 through Resolution 7Raa adopted the Industrial River Project Urban Renewal Plan thereto (the “Redevelopment Plan”); and
WHEREAS, on January 19, 2017, the Municipal Council adopted Resolution 7R2-a, which authorized and directed the City of Newark Central Planning Board (the “Central Planning Board”) to conduct a preliminary investigation to determine whether certain properties (including the Property as defined herein) in the area at or around Doremus Avenue (hereinafter, the “Study Area”) qualified as a Condemnation Redevelopment Area pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., (the “Redevelopment Law”); and
WHEREAS, CenterPoint 49 Rutherford Urban Renewal, LLC, 1808 Swift Drive, Oak Brook, Illinois 60524, (the “Redeveloper”) is the owner of real property located in the Study Area known as 17-89 Rutherford Street and designated as Block 5050.01, Lot 15 on the Official Tax Map of the City of Newark and 91-127 Rutherford Street and designated as Block 5056, Lots 26 and 89 on the Official Tax Map of the City of Newark (referred to as the “Property” or “Project Area”); and
WHEREAS, in accordance with the procedures set forth in the Redevelopment Law, on April 23, 2018, the Central Planning Board adopted a resolution recommending that the Municipal Council determine and declare that the Study Area is a Condemnation Redevelopment Area; and
WHEREAS, on June 7, 2018, the Municipal Council adopted Resolution 7R2-d(S), as amended, determining and declaring that the Property, among other properties located in the Study Area, qualified as a Condemnation Redevelopment Area; and
WHEREAS, upon subsequent review of Resolution 7R2-d(S), on January 23, 2019, the Municipal Council adopted Resolution 7R2-a, as amended, determining that the Property, among other properties located in the Study Area, qualified as a Condemnation Redevelopment Area; and
WHEREAS, on March 8, 2019, Redeveloper filed an action in lieu of prerogative writ captioned CenterPoint Properties Trust v. Municipal Council of the City of Newark, et al., Docket No. ESX-L-1849-19, challenging the Central Planning Board’s recommendation and the Municipal Council’s determination and declaration that the Property qualifies as a Condemnation Redevelopment Area (the “CenterPoint Litigation”); and
WHEREAS, the City and Redeveloper have agreed to settle the CenterPoint Litigation as evidenced by the Settlement Agreement, which was approved by Municipal Council by Resolution 7R6-b, adopted on April 7, 2020 (the “Settlement Agreement”); and
WHEREAS, pursuant to the Settlement Agreement, the Parties agreed that Redeveloper would stay the CenterPoint Litigation and subsequently file a Stipulation of Dismissal With Prejudice if: (i) the Parties execute a redevelopment agreement; (ii) the Redeveloper obtains site plan approval; (iii) the City adopts an ordinance authorizing the execution of a Financial Agreement for the Project pursuant to Long Term Exemption Law, N.J.S.A. 40A:20-1 et seq. (the “LTTE”); and
WHEREAS, on October 9, 2020, the City conditionally designated Redeveloper as redeveloper of the Property subject to the execution of a redevelopment agreement; and
WHEREAS, on August 19, 2021, the Municipal Council adopted Ordinance 6PSF-ae(S) granting a twenty (20) year tax abatement to the Redeveloper to demolish the existing dilapidated buildings on the Property and construct the Project; and
WHEREAS, the Redeveloper proposes to redevelop the Property into a 185,917 square foot modern functional warehouse that is large enough to attract a long-term corporate user (hereinafter, the “Project”); and
WHEREAS, the Redeveloper will implement the development, design, financing and construction of the Project in conformity with the Redevelopment Plan 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 redevelopment; 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 this 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 Redevelopment Plan and this 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, the Redevelopment Plan, Applicable Law (as defined herein) and this Redevelopment Agreement.
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 the Deputy Mayor/Director of the Department of Economic and Housing Development hereby: (a) designates the Redeveloper as the redeveloper of the real property located in the Study Area known as 17-89 Rutherford Street and designated as Block 5050.01, Lot 15 on the Official Tax Map of the City of Newark and 91-127 Rutherford Street and designated as Block 5056, Lots 26 and 89 on the Official Tax Map of the City of Newark (referred to as the “Property” or “Project Area”); and (b) authorize the Mayor of the City of Newark and Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the Redevelopment Agreement in substantially the form attached hereto as Exhibit 1.
2. The Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute the Redevelopment Agreement (the “Agreement”), for the redevelopment of the Property into a 185,917 square foot modern functional warehouse that is large enough to attract a long-term corporate user, in accordance with the requirements, terms and conditions of the attached Redevelopment Agreement
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 may enter into any related documents which may be necessary in order to effectuate the Redevelopment Agreement.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Redevelopment Agreement, and all such other executed agreements authorized by this resolution on file in the Office of the City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark 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 and execute the Redevelopment Agreement with CenterPoint 49 Rutherford Urban Renewal, LLC, 1808 Swift Drive, Oak Brook, Illinois 60524 for the redevelopment of the real property located in the Study Area known as 17-89 Rutherford Street and designated as Block 5050.01, Lot 15 on the Official Tax Map of the city of Newark and 91-127 Rutherford Street and designated as Block 5056, Lots 26 and 89 on the Official Tax Map of the city of Newark into a 185,917 square foot modern functional warehouse that is large enough to attract a long-term corporate user.