Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Grant Agreement
Purpose: To grant financial assistance for the construction of a new twenty-five (25) unit residential supportive housing project for LGBTQ homeless individuals with special needs.
Entity Name: North Jersey Aids Alliance Inc. d/b/a North Jersey Community Research Initiative
Entity Address: 393 Central Avenue, Newark, New Jersey 07103
Grant Amount: $300,000.00
Funding Source: Community and Economic Development Dedicated Trust Fund
Total Project Cost: $5,963,219.49
City Contribution: $300,000.00
Other Funding Source/Amount:
Grant Period: Commencing upon full execution of the Grant Agreement and expiring within twenty-four (24) months of the commencement date of construction
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale (X) Grant ( ) Sub-recipient ( ) n/a
List of Property: (if applicable)
(Address/Block/Lot/Ward)
22 1st Street/Block 1840/Lot 16/Central Ward
20 1st Street/Block 1840/Lot 17/Central Ward
18 1st Street/Block 1840/Lot 18/Central Ward
421 New Street/Block 1840/Lot 19/Central Ward
Additional Information:
This Grant will provide for a residential supportive housing project for LGBTQ homeless individuals with special needs - LGBTQ individuals that are either living in the streets or shelters - with a special need for onsite social services to address conditions such as HIV/AIDS, mental health and substance abuse to the residents at 22 1st Street, 20 1st Street, 18 1st Street, and 421 New Street (Block 1840, Lots 16, 17, 18 and 19), Newark, New Jersey (Central Ward) as identified on the Official Tax Map of the City of Newark.
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WHEREAS, the City of Newark (the “City”) through its Homelessness Commission issued a Housing Challenge - Call for Partners on November 16, 2020, to assist in the creation of healthy, permanent and affordable housing options for City of Newark “residents without addresses”, which sought partners to develop transitional, permanent supportive housing and housing first units, to aggressively attack the affordable housing and homelessness crisis; and
WHEREAS, the Housing Challenge - Call for Partners required submissions to be submitted via electronic mail by 4:00P.M., December 16, 2020; and
WHEREAS, North Jersey Aids Alliance Inc. d/b/a North Jersey Community Research Initiative, a New Jersey Non-profit Corporation having its place of business located at 393 Central Avenue, New Jersey 07103 (the “Redeveloper”) submitted a proposal on December 16, 2020, in response to the Housing Challenge - Call for Partners, seeking to construct a new twenty-five (25) unit residential supportive housing project for LGBTQ homeless individuals with special needs, which shall serve to protect the City’s most vulnerable populations, LGBTQ homeless individuals with special needs for onsite social services to address conditions such as HIV/AIDS, mental health and substance abuse to the residents (the “Project”) at 22 1st Street, 20 1st Street, 18 1st Street and 421 New Street, Block 1840, Lots 16, 17, 18 and 19, Newark, New Jersey 07108 (Central Ward) as identified on the Official Tax Map of the City of Newark (the “Property”); and
WHEREAS, since the property located at 22 1st Street, Newark, New Jersey 07108 (Block 1840, Lot 16) is currently owned by the City, the Redeveloper submitted a proposal to the City to request to purchase the property for the purpose of this Project; and
WHEREAS, the Resolution to authorize the private sale of the property located at 22 1st Street, Newark, New Jersey 07108 (Block 1840, Lot 16), through execution of an Agreement for the Sale and Redevelopment of Land and Quit Claim Deed, is scheduled to be presented to the Municipal Council on September 8, 2022, under Resolution 7R2-o; and
WHEREAS, in order to stimulate the reinvigoration of the City, the Municipal Council adopted Resolution 7Rdo(AS) on June 15, 2005, designating the entire City as an area in need of rehabilitation pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (“LRHL”); and
WHEREAS, the Municipal Council thereafter adopted Ordinance 6S&Fe(S) on August 17, 2005, adopting the First Amendment to the Central Ward Redevelopment Plan, governing the redevelopment of City-owned property located with the Central Ward, which includes the above referenced Property; and
WHEREAS, the Project is located within an area in need of redevelopment as defined under the LRHL; and
WHEREAS, the Project currently has a significant funding gap that must be bridged in order to make the Project financially feasible; and
WHEREAS, N.J.S.A. 40A:12A-8(f) authorizes municipalities to provide grants to redevelopers to provide financial assistance for the performance of redevelopment activities in order to implement redevelopment projects in accordance with redevelopment plans; and
WHEREAS, the Project qualifies for financial assistance since it is located within a redevelopment area and is being performed in accordance with the Central Ward Redevelopment Plan; and
WHEREAS, the Municipal Council recognizes the need to complete the above Project and desires to provide a capital grant in the amount of Three Hundred Thousand Dollars and Zero Cents ($300,000.00.00) (the “Grant”) to the Redeveloper to be used as a subsidy to develop the Project; and
WHEREAS, the funds for the Grant shall be provided from the City’s Community and Economic Development Dedicated Trust Fund, which was established by the Municipal Council through Resolution 7RG, adopted on November 6, 1985 (the “Resolution”) for the purpose of financing the development costs associated with redevelopment projects, urban revitalization projects, economic stabilization and stimulation projects, restoration and preservation of properties of special value for historic, architectural and esthetic reasons, and such other projects within the City, which are consistent with the activities eligible for assistance under Title I of the Housing and Community Development Act of 1974, as amended (“Title I”); and
WHEREAS, since the Project is consistent with the purposes set forth in the Resolution and the activities eligible for assistance under Title I, the City determined that it is in the best interest of the City to enter into a Grant Agreement and such other documents as may be necessary in order to fund the Grant to the Redeveloper.
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, are each hereby authorized to enter into and execute a grant agreement with the North Jersey Aids Alliance, Inc. d/b/a North Jersey Community Research Initiative, 393 Central Avenue, Newark, New Jersey 07103, in the form attached hereto the Grant Agreement, in the amount of Three Hundred Thousand Dollars and Zero Cents ($300,000.00) from the City’s Community and Economic Development Dedicated Trust Fund (the “Grant Funds”), to be used as financing assistance to develop and subsidize the costs of the Project, which shall facilitate redevelopment of the City and implementing related activities.
2. The Grant Funds are being provided to Redeveloper based on the Proposal submitted by Redeveloper on December 16, 2020, in response to the Housing Challenge - Call for Partners.
3. The Mayor of the City of Newark and/or his designee, and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute the Agreement for the Redevelopment of Land with Redeveloper, for the Project located at 22 1st Street, 20 1st Street, 18 1st Street and 421 New Street, Block 1840, Lots 16, 17, 18 and 19, Newark, New Jersey 07108 (Central Ward) as identified on the Official Tax Map of the City of Newark (the “Property”), to memorialize the terms and conditions of the redevelopment of the Property, consistent with the Proposal, and the award of the Grant Funds, provided the Municipal Council adopts Resolution 7R2-o on September 8, 2022, authorizing the private sale and redevelopment of the property located at 22 1st Street, Newark, New Jersey 07102 (Block 1840, Lot 16), which is included as part of this Project.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to establish and record a declaration of covenants, conditions and restrictions to ensure that the City shall be repaid the full amount of the Grant Funds disbursed to the Redeveloper upon the occurrence of an event of default under the Grant Agreement by requiring the Redeveloper to execute a separate Mortgage and Security Agreement and Note for the full amount of the Grant Funds, pursuant to the Grant Agreement. Said covenants, conditions and restrictions shall run with the land and bind the Redeveloper and any subsequent purchasers and owners, their heirs, executors, administrators and assigns and all persons claiming by, through or under their heirs, executors, administrators and assigns during the term of the Grant Agreement and the City shall discharge such Mortgage in connection therewith upon its issuance of a Certificate of Completion for the Project.
5. The term of the Grant Agreement shall commence on the date of full execution and delivery of the Grant Agreement by the Redeveloper and shall expire upon the City’s issuance of a Certificate of Completion for the Project as provided in the Grant Agreement.
6. The Redeveloper shall be responsible for the recordation of the final fully executed Grant Agreement and Mortgage and any amendments thereto in the Essex County Register’s Office.
7. 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 Grant Agreement as permitted by New Jersey Law and may enter into subordination agreements, access and right of entry agreements and other relevant documents related to these fund allocations in forms subject to the approval of the City’s Corporation Counsel. In addition, the Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of the term set forth in the Grant Agreement and any contract timelines and milestones contained therein, provided that any contract timelines and milestones are not extended beyond the two permitted six month extensions, subject to full written disclosure (in the form of a signed Memorandum to be submitted prior to adoption) to the Municipal Council by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City’s Corporation Counsel.
8. The Redeveloper must adhere to all milestones and timelines in the Project Schedule as further set forth in the Grant Agreement. The Project must conform to the City of Newark Design and Construction Standards Guidelines for New Home Construction, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Should the Redeveloper fail to complete the Project within the specified time frame set forth in the Grant Agreement, then the City, in its sole discretion, in addition to any other remedy available by the Grant Agreement or as allowed by law, may direct the Redeveloper to repay all funding authorized in the Grant Agreement.
9. The Redeveloper must remain in compliance with all municipal, State and Federal laws including, but not limited to the City of Newark’s Minority Set-Aside Ordinance (6S&Fd adopted on April 5, 1995) and its Affirmative Action Plan (7Rbp adopted on March 1, 1995), and Federal Executive Order 11246 (as amended by Executive Orders 1137 and 12086) with respect to the award of goods and services, as may be amended from time to time. The Redeveloper has agreed to ensure that a minimum of 40% of the workers employed during the construction of the project shall be Newark residents and that 30% of all contractors, subcontractors and suppliers shall be Newark companies.
10. Attached hereto is a Certification from the Director of the Department of Finance, which states that: (1) there are sufficient funds in the amount of Three Hundred Thousand Dollars and Zero Cents ($300,000.00); and (2) that the line appropriation of official budgets which shall be charged is as follows:
|
Department |
Dept. |
Division/Proj. |
Activity |
Account |
Budget Ref. |
Amount |
|
NW026 |
|
|
|
32100 |
B2022 |
$300,000.00 |
11. A copy of the fully executed Redevelopment Agreement, Grant Agreement, Note, recorded Mortgage, and Certification of Funds, together with this Resolution must be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
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 to enter into and execute a Redevelopment Agreement, Grant Agreement, Note and Mortgage and Security Agreement, in the forms attached hereto, in the amount of $300,000.00 from the City’s Community and Economic Development Dedicated Trust Fund in order to subsidize the costs necessary to complete the Project located at 22 1st Street, 20 1st Street, 18 1st Street and 421 New Street, Block 1840, Lots 16, 17, 18 and 19, Newark, New Jersey 07108 (Central Ward) as identified on the Official Tax Map of the City of Newark, pursuant to the Housing Challenge - Call for Partners (“Making Housing Homes”).