Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Redevelopment of the Property
Entity Name: Rose Hill Plaza, LLC
Entity Address: 5 Rose Manor Drive, Newark, New Jersey 07106
Sale Amount: $ 2,120,000.00
Cost Basis: ( ) $ PSF ( X ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $3,932,300.00
Appraised Amount: $2,120,000.00
Contract Period: Thirty (30) days from issuance of all permits and completed within Nine (9) months
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( X ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property:
(Address/Block/Lot/Ward)
491-557 Irvington Avenue/Block 4274/Lot 3/West Ward
Additional Information:
Ordinance 6S&FC 030601; Approved West Ward Redevelopment Plan and relocation of various City Owned parcels.
Ordinance 6S&FJ 112001; Approved First Amendment to West Ward Plan.
Ordinance 6S&FC(S) 081705; Approved Second Amendment to West Ward Plan.
Body
WHEREAS, the City, in connection with its efforts to redevelop the entire City, by Resolution 7RM,adopted May 4, 2005, directed the Central Planning Board of the City (the Central Planning Board) to undertake an investigation to determine if the City satisfied the statutory criteria as an area in need of rehabilitation in accordance with the provisions of N.J.S.A. 40A:12A-14 of the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the Act); and
WHEREAS, the Central Planning Board conducted the requested investigation in accordance with the Act, including a public hearing on June 6, 2005, after which hearing the Central Planning Board recommended the designation of the entire City as an area in need of rehabilitation to the City Administration and City Council; and
WHEREAS, on June 15, 2005, by Resolution 7RD0 (A.S.),based upon the recommendation of the Central Planning Board, the City designated the entire City as an area in need of rehabilitation (as defined by the Act) and the designation became effective on June 17, 2005 upon the transmission of the resolution to the New Jersey Department of Community Affairs by the City Clerk; and
WHEREAS, following the area in need of rehabilitation designation by the City Council, pursuant to N.J.S.A. 40A:12A-7 the City directed the Central Planning Board to review a proposed redevelopment plan for the West Ward of the City (the West Ward Redevelopment Plan); and
WHEREAS, after reviewing the proposed redevelopment plan, the Central Planning Board recommended that the West Ward Redevelopment Plan be adopted by the Municipal Council; and
WHEREAS, on March 6, 2001, through Ordinance 6S&FC, the Municipal Council adopted the West Ward Redevelopment Plan; and
WHEREAS, the West Ward Redevelopment Plan was subsequently amended twice through Ordinance 6S&FJ, adopted on November 20, 2001 and through Ordinance 6S&FC (S), adopted on August 17, 2005; and
WHEREAS, the West Ward Redevelopment Plan, as amended, is applicable to the development and rehabilitation of most City-owned properties located within the West Ward;
WHEREAS, pursuant to the LRHL, the City has determined to act as the Redevelopment Entity (as such term is defined at N.J.S.A. 40A:12A-3) for the rehabilitation of the Property in accordance with the Redevelopment Plan; and
WHEREAS, pursuant to N.J.S.A. 40A: 12A-8(f), the City is authorized to arrange or contract with redevelopers for the planning, replanning, construction or undertaking of any redevelopment project; and
WHEREAS, the City is the owner of that certain parcel of real property shown on the official tax map of the City of Newark as Block 4274 Lot 3, commonly known as 491 - 557 Irvington Avenue, located in the West Ward, which is presently improved with a shopping Center and police substation (the City Property); and
WHEREAS, Rose Hill Plaza LLC (the Redeveloper) has expressed an interest in redeveloping the portion of the City Property constituting the shopping Center, with the City retaining the portion containing the police substation (the City Property excluding the police substation shall be referred to hereinafter as the Property); and
WHEREAS, the City has determined that the Property is not needed for municipal purposes; and
WHEREAS, based on its review of the submissions and presentations made by representatives of the Redeveloper, the City determined that the Redeveloper has the professional experience and financial capabilities to carry out the rehabilitation of the Property in accordance with the approved West Ward Redevelopment Plan, as amended; and
WHEREAS, the Redeveloper has agreed to undertake building certain improvements on the Property which improvements will be designed to improve the appearance of the land and structures on the Property, as more particularly described and depicted on that certain plan entitled Design Elevations, Rose Hill Plaza, City of Newark, prepared by Chester, Ploussas, Lisowsky Partnership, LLC, dated March 1, 2012 (the Project as more specifically defined herein); and
WHEREAS, the City has determined that the Redeveloper appears to possess the proper qualifications, financial resources and capacity to implement and complete the Project in accordance with the West Ward Redevelopment Plan, as amended and all other applicable laws, ordinances and regulations; and
WHEREAS, the City believes the Project to be in the vital and best interests of the City and of the West Ward, and that it promotes the health, safety, morals and welfare of the City's residents and;
WHEREAS, the City and the Redeveloper have engaged in negotiations and the City has determined that in furtherance of the City's objectives to implement the rehabilitation contemplated within the West Ward Redevelopment Plan, as amended, it is in the public interest for the City to designate Rose Hill Plaza LLC as the redeveloper for the Property under the LRHL and to enter into an Agreement with the Redeveloper setting forth in greater detail the respective undertakings, rights and obligations of the Parties in connection with the Project.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
- The Mayor and/or his designee The Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into a Redevelopment Agreement with Rose Hill Plaza LLC, 5 Rose Manor Drive, Newark, New Jersey 07106, in the form attached hereto for the private sale and redevelopment of the portion of the following property constituting the shopping center, but excluding the police sub-station:
ADDRESS BLOCK LOT
491 - 557 Irvington Avenue 4274 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 annexed hereto and may enter into subordination agreements, access and right of entry agreements, and other relevant documents as permitted by law, subject to the approval as to form and legality by 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 six month extensions of the term of the contract and any contract timelines and milestones, 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 Newark Municipal Council by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval as to form and legality by the City's Corporation Counsel.
- Said property shall be sold to Rose Hill Plaza, LLC. by private sale for the consideration of Two Million One Hundred Twenty Thousand and 00/100 Dollars ($2,120,000.00), for redevelopment in accordance with the redevelopment agreement annexed hereto.
- The Deputy Mayor/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 provided in the redevelopment agreement annexed hereto including a limited right of reverter and certain covenants required pursuant to N.J.S.A. 40A:12A-9. Said deed conveying title to the Redeveloper shall be approved as to form and legality by the City's Corporation Counsel and attested to and acknowledged by the City Clerk.
- The Director of Finance is hereby authorized to receive proceeds of sale of said property and to deposit same as follows: ninety (90) percent of the sales proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under City Resolution No. 7RG 110685; and ten (10) percent of the sale proceeds shall be placed in the City's Affordable Housing Trust Fund established under City Ordinance 6PhS&FF 062106 for the purpose of preserving or creating low or moderate income affordable housing.
- A copy of the executed redevelopment agreement and deed shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
- This resolution shall take effect immediately.
STATEMENT
Passage of this resolution shall permit the City of Newark to execute a redevelopment agreement for the private sale and redevelopment of a portion of the following City-owned property 491-497 Irvington Avenue, Block 4274, Lot 3 for a total of $2,120,000.00.