Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: First Amendment to the Agreement for the Sale and Redevelopment of Land
Purpose: Agreement to Subordinate the City of Newark Reverter Rights by entering into a First Amendment to Agreement for the Sale and Redevelopment of Land and a Subordination Agreement in order to permit the Redeveloper to obtain financing necessary for the redevelopment of the Property.
Entity Name: Covenant House New Jersey, Inc.
Entity Address: 330 Washington Street, Newark, New Jersey 07102
Sale Amount: N/A
Cost Basis: ( ) $ PSF ( ) Negotiated (X) N/A ( ) Other:
Assessed Amount: N/A
Appraised Amount: N/A
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
List of Property:
(Address/Block/Lot/Ward)
283-285 Halsey Street/Block 96 / Lot 8/Central Ward
287 Halsey Street/Block 96 /Lot 10/Central Ward
352 Washington Street/Block 96/Lot 30/Central Ward
350 Washington Street/Block 96/Lot 31/Central Ward
348 Washington Street/Block 96/Lot 32/Central Ward
342-346 Washington Street/ Block 96/Lot 33/Central Ward
Additional Information:
Resolution 7R2-e adopted on November 6, 2025, designating Covenant House New Jersey, Inc. as the redeveloper and authorizing an Agreement for the Sale and Redevelopment of Land.
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WHEREAS, pursuant to Resolution 7R2-e adopted on November 6, 2025 the Newark Municipal Council (the “Municipal Council”) authorized the Mayor and 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”) with Covenant House New Jersey, Inc., 330 Washington Street, Newark, New Jersey 07102 (the “Redeveloper”) for the sale of the City-owned real property located at 283-285 Halsey Street, 287 Halsey Street, 352 Washington Street, 350 Washington Street, 348 Washington Street and 342-346 Washington Street, Newark, New Jersey, within the Central Ward of the City and identified on the official tax map of the City as Block 96, Lots 8, 10, 30, 31, 32 and 33 (the “Property”) for a purchase price of Five Hundred Thousand Dollars and Zero Cents ($500,000.00), for the development of a new 6-story building with a courtyard and 77 parking spaces on the ground floor, 72 residential rental units (studios, one, two- and three-bedroom units) which will be 100% affordable (at 40% - 80% Area Median Income levels), an intake center, administrative spaces, a dining hall, communal programs, educational spaces all to be used by the temporary housing residents, 76 single bedroom units and common spaces to service single youth, 20 single bedroom units and common spaces to service mothers and their children (the “Project”) ; and
WHEREAS, the sale and Agreement were authorized pursuant to N.J.S.A. 40A:12A-8(g) and the Central Ward Redevelopment Plan; and
WHEREAS, the Agreement allows the City to seek reversion of title to the Property under certain events of Default as defined in the Agreement (“Reverter Right”); and
WHEREAS, the Redeveloper has represented that it has secured a loan from WAYNE PAGLIERI, an individual, 158 Ashland Road, Summit, New Jersey 07901 (the “Lender”) in the amount of Five Hundred Thousand Dollars and Zero Cents ($500,000.00)(“Loan”) for the Project on the Property, which Loan will be evidenced by a Promissory Note and will be secured by a mortgage on the Property; and
WHEREAS, the Redeveloper has advised the City that as a condition of the above Loan, the Lender has requested that the City subordinate its Reverter Right to the mortgage and amend the notice provisions within the Agreement to include the Lender as an entity that will receive notices thereunder; and
WHEREAS, the Agreement states that the Reverter Right may be subordinated by the City subject to formal approval by the Municipal Council and pursuant to N.J.S.A. 40:60-51.2, which allows a municipality to waive, release, modify or subordinate any terms, covenants, conditions, limitations or reverters imposed in sales and conveyances of lands as to the erection, alteration or demolition of buildings or any other use to be made of land heretofore imposed by said municipality to accomplish the purposes for which such lands were sold and conveyed either at public or private sale including those set forth pursuant to Section 21 of P.L.1971, c. 199 (C.40A:12-21), but only after public hearing held before such governing body, of the holding of which notice describing the lands in question, and the terms, covenants, conditions, limitations or reverters to be waived, released, modified or subordinated, and, if to be modified or subordinated, describing the manner in which the same shall be modified or subordinated, shall first have been given by advertisement published once each week for two weeks in a newspaper published in said municipality or, if no newspaper be published therein, then in a newspaper circulating in such municipality, provided, however, that the power herein granted shall not be exercised to impair any vested or contractual rights of third parties”; and
WHEREAS, the Department of Economic and Housing Development caused a notice to be advertised, including the requirements established in N.J.S.A. 40:60-51.2, in the Star Ledger on January 20, 2026, and January 27, 2026, which complies with the notice requirement of once each week for two weeks; and
WHEREAS, the Municipal Council desires to subordinate the City’s Reverter Right contained in the Agreement and the Deed by entering into a Subordination Agreement and by entering into a First Amendment to Agreement for the Sale and Redevelopment of the Land for the purposes of the Subordination , so as to accomplish the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The recitals set forth in this Resolution are hereby incorporated as if fully stated herein.
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 a Subordination Agreement with WAYNE PAGLIERI, an individual, 158 Ashland Road, Summit, New Jersey 07901 (the “Lender”) and Covenant House New Jersey, Inc., 330 Washington Street, Newark, New Jersey 07102 (the “Redeveloper”), in the form attached hereto or such other forms reasonably acceptable to the parties, related to the property located at 283-285 Halsey Street, 287 Halsey Street, 352 Washington Street, 350 Washington Street, 348 Washington Street and 342-346 Washington Street, Newark, New Jersey, and identified on the tax map of the City as Block 96, Lots 8, 10, 30, 31, 32 and 33 (“Property”), which are located within the Central Ward, which shall be sold to Redeveloper pursuant to Resolution 7R2-e adopted November 6, 2025, for the development of a new 6-story building with a courtyard and 77 parking spaces on the ground floor, 72 residential rental units (studios, one, two- and three-bedroom units) which will be 100% affordable (at 40% - 80% Area Median Income levels), an intake center, administrative spaces, a dining hall, communal programs, educational spaces all to be used by the temporary housing residents, 76 single bedroom units and common spaces to service single youth, 20 single bedroom units and common spaces to service mothers and their children (the “Project”) .
3. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Ecnomic and Housing Development are hereby authorized to enter into a First Amendment to Agreement for the Sale and Redevelopment of Land with Redeveloper, in the form attached hereto, related to the Property for the Project, for purposes of the subordination and notice provisions.
4. Due notice has been provided in accordance with N.J.S.A. 40:60-51.2, of the subordination of the Lender’s mortgage and the City’s reverter rights to the Property has been duly given by publication as required by law and holding a public hearing on said resolution at a Meeting of the Municipal Council on February 4, 2026, in the Council Chamber located at City Hall, 920 Broad Street, Newark, New Jersey.
5. All other terms and conditions of the Agreement for the Sale of Land and Redevelopment authorized by and entered into pursuant to Resolution 7R2-e adopted on November 6, 2025, shall remain in full force and effect.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a filed copy of the fully executed Subordination Agreement and the First Amendment to Agreement for the Sale and Redevelopment of Land with the Office of City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute a Subordination Agreement with Covenant House New Jersey, Inc, 330 Washington Street, Newark, New Jersey 07102 (“Redeveloper”) and WAYNE PAGLIERI, an individual, 158 Ashland Road, Summit, New Jersey 07901 (the “Lender”) and a First Amendment to Agreement for the Sale and Redevelopment of Land, to enable the Redeveloper to obtain financing necessary for the development of the Project at 283-285 Halsey Street, 287 Halsey Street, 352 Washington Street, 350 Washington Street, 348 Washington Street and 342-346 Washington Street, Newark, New Jersey, within the Central Ward of the City and identified on the tax map of the City as Block 96, Lots 8, 10, 30, 31, 32 and 33.