Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to the Agreement for the Sale and Redevelopment of Land to Lincoln Park/Coast Cultural District, Inc., to change the Entity Name, amend the scope of the Project, correct the assessed amount, and correct the sale amount.
Entity Name: LPCCD Development, LLC
Entity Address: 450 Washington Street, Newark, New Jersey 07102
Sale Amount: $148,579.68
Cost Basis: (X) $6.00PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $417,000.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within eighteen (18) months from the transfer of ownership by the City
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)
11-15 Emmet Street/Block 2804/Lots 15, 16, 17/South Ward
68 Sherman Avenue/Block 2809/Lot 8/South Ward
26 Thomas Street/Block 2821/Lot 6/East Ward
54 Pennsylvania Avenue/Block 2821/Lot 11/East Ward
34-36 Parkhurst Street/Block 2821/Lot 13/East Ward
26 Parkhurst Street/Block 2821/Lot 18/East Ward
28 Parkhurst Street/Block 2821/Lot 17/East Ward
1109 Broad Street/Block 2822/Lot 34/East Ward
Additional Information:
Resolution 7R2-b adopted on September 8, 2022, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes a First Amendment to the Agreement for the Sale and Redevelopment of Land to change the Entity Name, amend the scope of the Project, correct the assessed amount, and correct the sale amount.
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WHEREAS, on September 8, 2022, the Newark Municipal Council adopted Resolution 7R2-b (the “Original Resolution”), which authorized the Mayor and/or his designee the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land (“Agreement”), for the sale of the following City-owned property (the “Property”) to Lincoln Park/Coast Cultural District, Inc., 450 Washington Street, Newark, New Jersey 07102 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the South Ward and East Ward, no longer needed for public use, in accordance with the Third Amendment to the South Ward Redevelopment Plan, adopted by Ordinance 6S&Fd(S) on August 17, 2005, as amended, and Ordinance 6S&Fe(S) on August 17, 2005, adopting the First Amendment to the East Ward, which governs the redevelopment of City-owned property located in the South Ward and East Ward, in the amount of One Hundred FortyEight Thousand Six Hundred Sixty-Eight Dollars and SixtyEight Cents ($148,668.60) with a cost basis of $6.00 per square foot (“Cost Basis”), to redevelop the Property into multi-family modular units of artistic housing (“Scope of Project”):
ADDRESS WARD BLOCK LOT
11-15 Emmet Street South 2804 15
68 Sherman Avenue South 2809 8
26 Thomas Street East 2821 6
54 Pennsylvania Avenue East 2821 11
34-36 Parkhurst Street East 2821 13
28 Parkhurst Street East 2821 17
26 Parkhurst Street East 2821 18
1109 Broad Street East 2822 34
WHEREAS, pursuant to the Original Resolution, the Agreement for the Sale and Redevelopment of Land with Redeveloper (the “Agreement”), attached hereto as Exhibit A, was executed on or about October 30, 2023, ; and
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Property, pursuant to the Agreement and commence the redevelopment of the Property, Redeveloper desires to protect its nonprofit status and proceed with the purchase of the Property in the name of an affiliated entity, LPCCD Development, LLC, 450 Washington Street, Newark, New Jersey 07102 (“Amended Redeveloper”); and
WHEREAS, since the Property was not transferred to Redeveloper, Redeveloper is also requesting an amendment to the Scope of the Project to construction of eight (8), two (2) family houses; one (1), three (3) family house; and a residential/commercial mixed use building, for housing that targets artists and Newark residents (“Amended Project Scope”); and
WHEREAS, in reviewing the Redeveloper’s request for a change in its name and project, the City noticed an error in the assessed amount of the Property of $404,500.00 (“Original Assessed Amount”) and the sale amount of $148,668.60 (“Original Sale Amount”), which was determined based on a calculation involving the total square footage of 24,778.10 (“Original Square Footage”), which was also incorrect in the Original Resolution and Agreement; and
WHEREAS, the correct total square footage of the Property is 24,763.28 (“Correct Square Footage”) and when calculated using the Cost Basis of $6.00 per square foot, the Sale Amount is One Hundred Forty-Eight Thousand Five Hundred Seventy-Nine Dollars and Sixty-Eight Cents ($148,579.68)(“Correct Sale Amount”); and
WHEREAS, the corrected assessed amount of the Property is $417,000.00 (“Correct Property Assessment Amount”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Project Scope, the Amended Redeveloper, Correct Square Footage, Correct Sale Amount, and Correct Property Assessment Amount; and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with the Amended Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Project Scope , as that term is defined herein, is in the vital and best interests of the City of Newark (“City”) and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to approve the sale of the Property and to change the purpose of the sale to reflect the Amended Project Scope, Amended Redeveloper, Correct Square Footage, Correct Sale Amount, and Correct Property Assessment Amount and enter into the First Amendment to the Agreement for the Sale of and Redevelopment of Land (“Amended Agreement”) in order to memorialize the terms and conditions of the sale and redevelopment of the Property, in a form substantially consistent to the Amended Agreement, attached hereto as Exhibit B.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R-2b, adopted on September 8, 2022 (“Original Resolution”) by the Newark Municipal Council and the Agreement for the Sale and Redevelopment of Land (“Original Agreement”) are hereby amended to change the following:
• Purpose of the sale from multi-family modular units of artist housing to construction of eight (8), two (2) family houses; one (1), three (3) family house; and a residential/commercial mixed use building, for housing that targets artists and Newark residents (“Amended Project Scope”);
• Redeveloper from Lincoln Park/Coast Cultural District, Inc. to LPCCD Development, LLC, 450 Washington Street, Newark, New Jersey 07102 (“Amended Redeveloper”);
• Square Footage from 24,778.10 to 24,763.28;
• Sale Amount from $148,668.60 to $148,579.68; and
• Property Assessment Amount from $404,500.00 to $417,000.00
2. The Mayor 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 First Amendment to the Agreement for the Sale and Redevelopment of Land (“Amended Agreement”), in the form attached hereto as Exhibit B, with LPCCD Development, LLC, 450 Washington Street, Newark, New Jersey 07102 (the “Redeveloper), for the private sale and rehabilitation of the following Property, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A;12A-8(g), the terms and conditions of the attached Amended Agreement and the South Ward and East Ward Redevelopment Plan, as amended to amend the Project Scope, Redeveloper Name, Square Footage of the Property, Sale Amount and Property Assessment Amount (“Amended Agreement”):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
11-15 Emmet Street South 2804 15 75X99.70 7,477.50
68 Sherman Avenue South 2809 8 25X100 2,500
26 Thomas Street East 2821 6 31.3X78.6 2,460.18
54 Pennsylvania Avenue East 2821 11 27X100 2,700
34-36 Parkhurst Street East 2821 13 60.10X40 2,404
28 Parkhurst Street East 2821 17 28X100 2,800
26 Parkhurst Street East 2821 18 26X95.6 2,485.60
1109 Broad Street East 2822 34 17.6X110 1,936
Total Square Footage: 24,763.28 sq. ft.
Total Purchase Price: $148,579.68 ($6.00 per sq. ft.).
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
4. 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 Amended Agreement and may enter into any related documents, which may be necessary in order to effectuate the Amended Agreement.
5. The executed Amended Agreement and the Quitclaim 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.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development is authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Amended Agreement, subject to full written disclosure of such extension(s) (in the form of a signed Memorandum to be submitted to the Office of the City Clerk prior to adoption) to the Municipal Council of the City of Newark by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City of Newark’s Corporation Counsel.
7. The Redeveloper shall have thirty (30) days from the date this Resolution is certified by the Office of the City Clerk to execute the attached Amended Agreement and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Amended Agreement within this thirty (30) day time period, the authorization provided by this Resolution shall be null and void, unless the Deputy Mayor/Director of the Department of Economic and Housing Development agrees in writing to extend this thirty (30) day period.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Property. Said Quitclaim Deed conveying title to the Property 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.
STATEMENT
This Resolution authorizes the Mayor 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 a First Amendment to the Agreement for the Sale and Redevelopment of Land with LPCCD Development, LLC, 450 Washington Street, Newark, New Jersey 07102 (“First Amendment”), to amend the Project Scope, Redeveloper Name, Correct the Assessed Amount, and Correct the Sale Amount.