Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Redevelopment Agreement for Redevelopment of Land
Purpose: Industrial warehouse redevelopment project on Blanchard Street (East Ward)
Entity Name/Address: Morris Lister Avenue Associates II, LLC., 350 Veterans Boulevard, Rutherford, New Jersey 07070
Contract Amount: $0.00
Contract Period: $0.00
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
(X) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
(Address/Blocks/Lots/Ward)
134-152 Lockwood Street/Block 2412 Lot 7/East Ward
130-132 Lockwood Street/Block 2412 Lot 82/East Ward
86-112 Lister Avenue/Block 2438 Lot 4/East Ward
94-112 Lister Avenue/Block 2438 Lot 19/East Ward
114-120 Lister Avenue/Block 2438 Lot 34/East Ward
122-152 Lister Avenue/Block 2438 Lot 40/East Ward
104-112 Lister Avenue Rear/Block 2438 Lot 56/East Ward
94-102 Lister Avenue Rear/Block 2438 Lot 57/East Ward
86-92 Lister Avenue Rear/Block 2438 Lot 58/East Ward
86-92 Lister Avenue Rear/Block 2438 Lot 59/East Ward
122-152 Lister Avenue Rear/Block 2438 Lot 62/East Ward
121-143 Lister Avenue/Block 2438 Lot 65/East Ward
145-147 Lister Avenue/Block 2438 Lot 70/East Ward
154 Lockwood Avenue/Block 2438 Lot 90/East Ward
Additional Information:
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WHEREAS, over the last three decades there has been substantial redevelopment in downtown Newark, including the new Prudential Financial Center, Panasonic, Prudential Center Arena, the Gateway Complex, the New Jersey Performing Arts Center and the Seton Hall Law School Building; but that redevelopment has not, however, spurred similar redevelopment in the area more commonly known as 134-152 Lockwood Street, 130-132 Lockwood Street, 86-112 Lister Avenue, 94-112 Lister Avenue, 114-120 Lister Avenue, 122-152 Lister Avenue, 104-112 Lister Avenue Rear, 94-102 Lister Avenue Rear, 86-92 Lister Avenue Rear, 86-92 Lister Avenue Rear, 122-152 Lister Avenue Rear, 121-143 Lister Avenue, 145-147 Lister Avenue, 154 Lockwood Avenue, Newark, New Jersey, and designated as Block 2412, Lots 7 and 82, and Block 2438, Lots 4, 19, 34, 40, 56, 57-59, 62, 65, 66, 68, 70, 90, 90.01 and 93 (the “Project Area”), which was previously designated as part of a blighted area pursuant to the Blighted Areas Act., N.J.S.A. 40:55-21.1 et seq. (“Redevelopment Area”) and for which in 1964, the City adopted the Urban Renewal Plan Industrial River Project NJ R-121 (“Industrial River Redevelopment Plan,” as amended, the “Plan”) in which Plan the City declared its objective to redevelop vacant, deteriorated, contaminated and/or obsolete property within the Redevelopment Area, which is east of the downtown area, to create new and appropriate redevelopment opportunities and to provide additional employment of City residents; and
WHEREAS, on November 6, 1963, when the Municipal Council designated the Redevelopment Area it did so based on a finding that there was evidence of the substandard nature of the soil conditions in a major portion of the Industrial River Redevelopment Plan area which, among other factors, led to the conclusion that the area was not suitable in its present condition for development and was not likely to be developed through the instrumentality of private capital; and
WHEREAS, studies presented to the City in connection with the redevelopment indicated that substantial development challenges in the area were due to the low ground elevation permitting tidal flooding, and the nature of the soil condition in a major portion of the area which requires special construction techniques to support the development of improvements, and those challenges continue to this day; and
WHEREAS, post-Superstorm Sandy experience underscores a major reason why comprehensive redevelopment of the area is more important than ever, given the need to raise the level of the structures in the area above the flood plain, and given the need to address environmental issues in the area; and
WHEREAS, to implement redevelopment plans, the City has been serving as the redevelopment entity responsible to implement and carry out the redevelopment projects pursuant to N.J.S.A. 40A:12A-4(c); and 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 pursuant to, among other plans, the Industrial River Redevelopment Plan; and
WHEREAS, The Morris Companies, on behalf of its affiliate Morris Lister Avenue Associates II, LLC (hereinafter collectively "Morris Companies"), submitted a development proposal to the City of Newark, Department of Economic and Housing Development, outlining its proposal for the redevelopment of the Project Area (the area is generally bounded by the Morris Lister Project site on the west, the Passaic River on the north, the Morris Fairmount Project site on the east, and both Lister Avenue and the recently completed Wakefern Distribution Facility Site on the south); and
WHEREAS, the development proposal provided evidence of Morris Companies qualifications to serve as the City's designated redeveloper of the Project Area; and notably the affiliates of the Morris Companies have demonstrated their ability to serve as the City’s redeveloper in connection with the clearance, planning, replanning, development and redevelopment of the adjacent properties in the Redevelopment Area; specifically Morris Lister Avenue Associates Urban Renewal, LLC and Morris Fairmount Associates Urban Renewal, LLC have served as the redevelopers of two large successful projects in the Industrial River Redevelopment Plan Area where these parties related to Morris Companies have deployed the required engineering, development and construction expertise to remediate and improve the land, and developed 21st century warehouse/logistics facilities in which hundreds of new employees are finding jobs; moreover, the experience of the Morris Companies extends beyond its other projects in Newark, including over Thirty Million (30,000,000) square feet of industrial development, including sites in Edison, Linden, Perth Amboy, and other properties throughout the Northeast; importantly, the Morris Companies affiliates have proven that Morris Companies have the ability to fund pre-development property acquisition and soft cost expenditures, as well as to invest its own equity and readily access conventional financing through lenders with whom it deals regularly; and
WHEREAS, Morris Companies proposed to construct a modern Class A warehouse/distribution facility and associated office space of approximately Four Hundred Ninety Seven Thousand-Nine Hundred Ninety Seven (497,997) square feet, with associated parking facilities for trucks, containers, employees and vendors/visitors, of an area covering approximately Twenty Three (23) acres which constitute the Project Area (the “Project”); and
WHEREAS, based on the review of the qualifications and conceptual proposal submitted in the redevelopment proposal, the City finds that the Project will substantially further the City's goals for redevelopment of the Project Area, and that Morris Companies are fully qualified and have the professional experience and financial capabilities to carry out the redevelopment of the Project in accordance with the Industrial River Redevelopment Plan; and
WHEREAS, the City and the Morris Companies desire to enter into a Redevelopment Agreement pursuant to N.J.S.A. 40A:12A-1 et seq.; and
WHEREAS, for the above stated reasons, the City hereby determines that it is in the public interest for the City to designate Morris Lister Avenue Associates II, LLC, an affiliate of the Morris Companies, as the redeveloper for the Project Area.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Based on the findings set forth above which are incorporated as part of this Resolution, the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, are hereby authorized to enter into the Redevelopment Agreement between the City of Newark and Morris Lister Avenue Associates II, LLC, 350 Veterans Boulevard, Rutherford, New Jersey 07070 (“Redeveloper”), in the form attached hereto.
2. 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 any timeframe set forth in the Redevelopment 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 Acting Corporation Counsel.
3. The City, acting as the Redevelopment Entity, hereby reaffirms the designation of the Redeveloper as the sole and exclusive designated redeveloper of the Project Area. The Redeveloper shall be required to undertake all actions necessary to Commence and Complete construction of the Project. In connection with such designation and appointment, Redeveloper has the exclusive right to perform any and all development and redevelopment activities, commercial, industrial and otherwise, on and about the Project Area consistent with the Redevelopment Plan, the Act and the Agreement. Each of the Parties agrees that all development and redevelopment on and about the Project Area will only be authorized and may only be undertaken by Redeveloper under the framework and in accordance with the terms of this Agreement. Further, the City agrees that it will not negotiate or entertain for the provision of another redeveloper or developer for the Project Area or any portion thereof.
4. The Redeveloper shall be designated as the exclusive redeveloper of the Project Area and any other prior legislation authorizing or intended to authorize a redevelopment designation within the Project Area is hereby rescinded.
5. 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 Redevelopment Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached 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 time period.
6. Staff and consultants to the City are hereby authorized and directed to take all other administrative actions to implement this Resolution as are necessary and appropriate to accomplish its goals and intent.
7. This Resolution shall be effective immediately.
8. A copy of the fully executed Agreement shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of Economic and Housing Development.
STATEMENT
This resolution authorizes the execution of a Redevelopment Agreement with Morris Lister Avenue Associates II, LLC, 350 Veterans Boulevard, Rutherford, New Jersey 07070, for the purpose of effectuating the industrial warehouse redevelopment project on Blanchard Street (East Ward).