Title
Dept/Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Shared Services Agreement
Purpose: To facilitate and expedite the redevelopment of the Seth Boyden Site by collaborating on the demolition of the buildings and improvements on the Seth Boyden Site and the removal of debris therefrom, which collaboration will include a contribution of $4,000,000.00 from the City of Newark (City) to the Newark Housing Authority (NHA) to be applied to contracts for services for such undertakings procured in accordance with all applicable Laws in exchange for NHA making an equal contribution to the City in accordance with Section 2.4 of the Shared Services Agreement for redevelopment projects, as yet identified by the City.
Entity Name: Housing Authority of the City of Newark
Entity Address: 500 Broad Street, Newark, New Jersey 07102
Project Location: 741-811 Frelinghuysen Avenue, Newark, New Jersey 07114
Reimbursement Amount: $4,000,000.00
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
Additional Information:
A Shared Service Agreement with the Newark Housing Authority.
body
WHEREAS, there exists, have existed and persists in various communities of the State of New Jersey (the “State”) conditions of deterioration in housing commercial and industrial installations, public services and facilities and other physical components and supports of community life, and improper, or lack of proper, development, which result from forces which are amenable to correction and amelioration by the concerted efforts of responsible public bodies, and without this public, and sometimes joint, effort, are not likely to be corrected or ameliorated by private effort; and
WHEREAS, the Housing Authority of the City of Newark, a public body corporate and politic of the State of New Jersey with an address at 500 Broad Street, Newark, New Jersey 07102 (the “NHA”) is a public body and local housing authority established pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the “Act”), and the owner of that approximately fifteen (15) acre site in the City commonly known as Seth Boyden Terrace, located at 741-811 Frelinghuysen Avenue and identified as Block 3746, Lot 1 on the Official Tax Map of the City of Newark (the “Seth Boyden Site”); and
WHEREAS, the Seth Boyden Site has been vacant since 2012 and, as result thereof, the building and improvements thereon are in a significant state of dilapidation, deterioration and disrepair and, together with debris located on the Seth Boyden Site, is a blight upon and threat to the health, welfare and safety to residents of the City; and
WHEREAS, in accordance with the Act and on August 11, 2020, by Resolution 7R2-f(S), the City of Newark (the “City”) designated the Seth Boyden Site, among others, as a non-condemnation area in need of redevelopment (the “Redevelopment Area”); and
WHEREAS, the City duly adopted the Dayton Street Scattered Site Redevelopment Plan for the Redevelopment Area (as may be amended or supplemented in accordance with the Act, the “Redevelopment Plan”); and
WHEREAS, the NHA is authorized to act as a redevelopment entity pursuant to Section 21 of the Act and pursuant to Section 22 of the Act, may exercise redevelopment powers, when so authorized by the City; and
WHEREAS, on February 19, 2020, pursuant to Resolution 7R2-j(AS) to realize the redevelopment of the certain properties in the South Ward, including the Seth Boyden Site, the City appointed the NHA as the Redevelopment Entity responsible for implementing the Redevelopment Plan and carrying out redevelopment projects in the Redevelopment Area pursuant to the Act; and
WHEREAS, by its Resolution 7R2-j(AS), the City authorized the Redevelopment Entity to exercise the powers of a redevelopment entity as set forth in Section 8 of the Act to effectuate the Redevelopment Plan; and
WHEREAS, since the adoption of Resolution 7R2-j(AS) the Seth Boyden Site has continued to deteriorate and has become more dangerous to the health, safety and welfare of the City, the City’s citizens, residents, first responders, and others, including major criminal activity; and
WHEREAS, it is in the best interest of the City, its residents, and the Redevelopment Entity to assist the Redevelopment Entity in its efforts to demolish and remove the vacant buildings, and hazardous debris at the Seth Boyden Site; and
WHEREAS, it is in the best interest of the Redevelopment Entity to move expeditiously to demolish the site, so that it can move forward with the redevelopment of the Site; and
WHEREAS, pursuant to the Uniform Shared Services and Consolidation Act, N.J.S.A. 40A:65-1 et seq. (the “Shared Services Act”), any local unit may enter into an agreement with any other local unit or units to provide or receive any service that each local unit participating in the agreement is empowered to provide or receive within its own local jurisdiction, including services incidental to the primary purposes of any of the participating local units; and
WHEREAS, for the mutual benefit of the City and the Redevelopment Entity, the Parties intend to assist each other in fulfilling the Redevelopment Entity’s obligation to effectuate the demolition of this site attendant to its Redevelopment Agreement, to create safe spaces for the City and its residents; and
WHEREAS, the Parties agree that in exchange for this assistance, the Redevelopment Entity will provide equal assistance to the City for other as yet identified redevelopment projects; and
WHEREAS, in accordance with the Shared Services Act, the Parties intend and agree to share expertise and resources to realize significant efficiencies in effecting the redevelopment of the Redevelopment Area, including the Seth Boyden Site, and other redevelopment projects as the City may designate, for the mutual benefit of the City and the Redevelopment Entity; and
WHEREAS, in furtherance of the foregoing, the Parties desire to facilitate and expedite the redevelopment of the Seth Boyden Site by entering into this Agreement to collaborate on the demolition of the buildings and improvements on the Seth Boyden Site and the removal of debris therefrom, which collaboration will include a contribution of Four Million Dollars and Zero Cents ($4,000,000.00) from the City to the Redevelopment Entity from the City’s allocation of the Hess Settlement funds to be applied to contracts for services for such undertakings in exchange for an equal contribution from the Redevelopment Entity to the City for redevelopment projects as yet identified by the City, pursuant to the terms of this Agreement; and
WHEREAS, pursuant to N.J.S.A.40A:65-5c, this Shared Services Agreement shall take effect upon the adoption of this Resolution and execution of the Agreement; and
WHEREAS, the Department of Economic and Housing Development seeks the Municipal Council’s approval to enter into and execute this Shared Services Agreement, which provides for the contribution of funds to NHA, which will be applied towards the demolition services of the Seth Boyden Site in exchange for an equal contribution from NHA to the City for its redevelopment projects.
NOW, THEREFORE, BE IN RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, THAT:
1. The Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Deputy Mayor/Director of the Department of Economic and Housing Development are authorized to enter into and execute a Shared Services Agreement with the Housing Authority of the City of Newark, 500 Broad Street, Newark, New Jersey 07102, (NHA) in the form attached hereto, to facilitate and expedite the redevelopment of the Seth Boyden Site by collaborating on the demolition of the buildings and improvements on the Seth Boyden Site and the removal of debris therefrom, which collaboration will include a contribution of Four Million Dollars and Zero Cents ($4,000,000.00) from the City to the NHA to be applied to contracts for services for such undertakings procured in accordance with all applicable Laws in exchange for NHA making an equal contribution to the City in accordance with Section 2.4 of the Shared Services Agreement for redevelopment projects as yet identified by the City.
2. The terms of the City Contribution under the Shared Services Agreement, shall be subject to and consistent with all terms and requirements set forth Shared Services Agreement.
3. To the extent that the cost of the demolition work exceeds the amount of the City’s Contribution, NHA shall be responsible to provide for the payment of any excess.
4. There shall be no amendment or change to this Agreement without the approval of the Municipal Council by Resolution.
5. There shall be no advance payment under this Agreement pursuant to N.J.S.A. 40A:5-16.
6. Attached hereto is a Certification of Funds from the Director of the Department of Finance, which states that: (1) there are available sufficient legally appropriated funds in the amount of Four Million Dollars and Zero Cents ($4,000,000.00) for the purposes set forth herein; and (2) that the line appropriation of the official budget which shall be charged is as follows:
|
Business Unit |
Dept. |
Div./Proj. |
Account# |
Budget Yr. |
Amount |
|
026 |
- |
- |
3207 |
B2022 |
$4,000,000.00 |
7. The Deputy Mayor/Director of the Department of Economic and Housing Development shall file a copy of this Resolution, Certification of Funds and Shared Services Agreement with the Office of the City Clerk.
8. If required by State Law, the City Clerk shall provide the appropriate notice of this Agreement to the State Comptroller no later than twenty (20) business days following the award, in accordance with N.J.S.A. 52:15C-10 and the May 7, 2008 Notice of the Office of the State Comptroller.
STATEMENT
Resolution authorizing the Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Deputy Mayor/Director of Economic and Housing Development to enter into and execute a Shared Services Agreement with the Housing Authority of the City of Newark to facilitate and expedite the redevelopment of the Seth Boyden Site by collaborating on the demolition of the buildings and improvements on the Seth Boyden Site and the removal of debris therefrom, which collaboration will include a contribution of $4,000,000.00 from the City to the NHA to be applied to contracts for services for such undertakings procured in accordance with all applicable Laws in exchange for NHA making an equal contribution to the City in accordance with Section 2.4 of the Shared Services Agreement for redevelopment projects as yet identified by the City.