Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Amending Private Sale Resolution
Purpose: Extend the Due Diligence Period, address the Environmental Conditions discovered to date, and permit the expeditious redevelopment of the Property, or portions thereof, while the Environmental Conditions are being addressed and effectuate certain business terms and conditions related to the filing of applications for HDSRF Grants from the New Jersey Department of Environmental Protection.
Entity Name: The Friends of TEAM Academy Charter School and Ashland School Inc.
Entity Address: N/A
Original Amount: Two Hundred Sixty-One Thousand Five Hundred Seventy-Six and 88/100 Dollars ($261,576.88)
Amended Amount: N/A
Assessed Amount: N/A
Appraised Amount: N/A
List of Deleted Property:
(Address/Block/Lot/Ward)
N/A
List of Remaining Property:
(Address/Block/Lot/Ward)
City of Newark as Block 317, Lots 1, 2, 3, 4, 5, 6, 7, 13, 15, 56, and 58, and Block 2853, Lots 19, 21, 23, 28, 29 and 30
424-430 S. Orange Avenue/317/1, 2, 3, 4/West Ward
418-422 S. Orange Avenue/317/5, 6, 7/West Ward
406-408 S. Orange Avenue/317/13/West Ward
9 Ashland Street/317/15/West Ward
410-414 S. Fourteenth Street/317/56/West Ward
416-422 S. Fourteenth Street/317/58/West Ward
18 Newark Street/2853/19/Central Ward
16 Newark Street/2853/21/Central Ward
14 Newark Street/2853/23/Central Ward
268 Orange Street/2853/28/Central Ward
266 Orange Street/2853/29/Central Ward
262-264 Orange Street/2853/30/Central Ward
Additional Information:
This resolution authorizes an amendment to the Redevelopment Agreement with The Friends of TEAM Academy Charter School and Ashland School Inc. (collectively, the Redeveloper), authorized by Resolution 7R3-n 090513, to extend the Due Diligence Period authorized by the Redevelopment Agreement to a date that is no later than March 18, 2016 in order to give the Redeveloper sufficient time to address the Environmental Conditions discovered to date, and permit the expeditious redevelopment of the Property, or portions thereof, while the Environmental Conditions are being addressed.
Deferred 7R3-b 091714
Deferred 7R3-a 100114
body
WHEREAS, pursuant to Resolution 7R3-n 090513 adopted by the Municipal Council on September 5, 2013, the City of Newark designated The Friends of TEAM Academy Charter School, a New Jersey Non-Profit Organization, and Ashland School Inc., (collectively, the Redeveloper) as redeveloper of the Property; and
WHEREAS, pursuant to Resolution 7R3-n 090513 the City authorized the sale of the Property to the Redeveloper for the consideration of Two Hundred Sixty-One Thousand Five Hundred Seventy-Six Dollars and 88/100 Cents ($261,576.88), to undertake the construction of a recreational area, including athletic fields and other open or green space, ancillary to and for the use of The TEAM Academy Charter school (the Project); and
WHEREAS, pursuant to Resolution 7R3-n 090513 the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development were authorized to enter into a Redevelopment Agreement with Redeveloper and the Redevelopment Agreement was executed on November 18, 2013; and
WHEREAS, the Redevelopment Agreement provided the Redeveloper with a Due Diligence Period of sixty (60) days from November 18, 2013 to conduct investigations regarding the Property; and
WHEREAS, the Redevelopment Agreement authorized the Director of Housing and Economic Development (the “Director”) to provide up to two (2) six month extensions of the Due Diligence Period; and
WHEREAS, the Director provided the Redeveloper with a sixty (60) day extension of the Due Diligence Period by letter dated January 10, 2014, whereby the Due Diligence Period was extended to March 18, 2014; and
WHEREAS, the Director provided the Redeveloper with a six (6) month extension of the Due Diligence Period by letter dated March 13, 2014, whereby the Due Diligence Period was extended to September 18, 2014; and
WHEREAS, the Redeveloper has conducted due diligence investigations as permitted by the Redevelopment Agreement which have disclosed Environmental Conditions at the Property that require further study and investigation; and
WHEREAS, it is in the best interests of the City and the Redeveloper to enter into the First Amendment to Redevelopment Agreement attached hereto to extend the Due Diligence Period authorized by the Redevelopment Agreement for up to three (3) additional six (6) month periods so that the outside date for the conclusion of the Due Diligence Period would be no later than March 18, 2016 in order for the Redeveloper to address the Environmental Conditions discovered to date, and permit the expeditious redevelopment of the Property, or portions thereof, while the Environmental Conditions are being addressed.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee, the Director of the Department of Economic and Housing Development, are hereby authorized to enter into the First Amendment to Redevelopment Agreement with The Friends of TEAM Academy Charter School and Ashland School Inc. 60 Park Place, Suite 802, Newark, New Jersey 07102, in the form attached hereto to extend the Due Diligence Period authorized by the Redevelopment Agreement to no later than March 18, 2016 in order for Redeveloper to address the Environmental Conditions discovered to date, and permit the expeditious redevelopment of the Property, or portions thereof, while the Environmental Conditions are being addressed.
2. The Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the First Amendment to Redevelopment Agreement annexed hereto, subject to the approval of the City of Newark Municipal Council, including but not limited to causing the preparation of applications and the filing of applications for HDSRF Grants from the New Jersey Department of Environmental Protection to address the Environmental Conditions at the property, signing HDSRF Grant related documentation or consenting to the filing of HDSRF grant related documentation by the Redeveloper, entering into the Funding Agreement described in the First Amendment that requires that the Redeveloper fund certain of the City’s costs and that the City use the purchase price for portions of the Property to pay for the City’s 25% match in connection with HDSRF Remedial Action grants, and entering into the Ground Lease described in the First Amendment to permit the Redeveloper to ground lease portions of the property to facilitate the Remediation of the Environmental Conditions and the construction of the Project described in the Redevelopment Agreement.
3. The Director of the Department of Economic and Housing Development is hereby authorized to execute a Bargain and Sale Deed to the Redeveloper for the Property as contemplated by the First Amendment to Redevelopment Agreement annexed hereto which shall be approved as to form and legality by the City's Corporation Counsel and attested to and acknowledged by the City Clerk.
4. The Acting Director of Finance is hereby authorized to establish an escrow fund or escrow funds for the purpose of receiving the funds described in Section 6 of the First Amendment to Redevelopment Agreement which are for the purpose of paying the City’s out of pocket costs and funding the 25% City match for HDSRF Remedial Action grants.
5. A copy of the executed First Amendment to Redevelopment Agreement and any deeds shall be placed on file in the Office of the City Clerk by the Director of the Department of Economic and Housing Development.
STATEMENT
This resolution authorizes the Mayor and/or his designee the Director of the Department of Economic and Housing Development to enter into a First Amendment to the Redevelopment Agreement with The Friends of TEAM Academy Charter School and Ashland School Inc. authorized by Resolution 7R3-n 090513. The purpose of the First Amendment is to extend the Due Diligence Period authorized by the Redevelopment Agreement to a date no later than March 18, 2016 in order for the Redeveloper to address the Environmental Conditions discovered to date, and permit the expeditious redevelopment of the Property, or portions thereof, while the Environmental Conditions are being addressed. This resolution also authorizes the Director of Economic and Housing Development to apply for and execute documents in connection with HDSRF Grant applications for the Property, to enter into a Funding Agreement with the Redeveloper to pay the City’s out of pocket costs and establish an escrow for the City’s 25% matching grant for HDSRF Remedial Grants and to enter into a ground lease with the Redeveloper to permit the Redeveloper to obtain access to certain portions of the Property for the purpose of undertaking Remediation prior to the Redeveloper accepting a deed to the portions of the property that require Remediation and to execute more than one deed with the Redeveloper to facilitate the expeditious redevelopment of the Property, all subject to the approval of the City of Newark Municipal Council.