Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Assignment of Contract Agreement
Purpose: The Assignment of the Financial Agreement from Diversified Realty Limited, LLC to Casa Mia Urban Renewal Company, LLC.
Entity Name: Casa Mia Urban Renewal Company, LLC
Entity Address: 502-504 Summer Avenue, Newark, New Jersey 07104
Contract Amount: $0.00
Funding Source: N/A
Contract Period: N/A
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:
(502-504 Summer Avenue/Block 625, Lot 46/North Ward )
Additional Information:
Original Tax Abatement granted by Resolution 7RBw adopted on January 18, 1978.
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WHEREAS, on January 18, 1978, the Municipal Council adopted Resolution 7RBw, granting a long term tax abatement to Assignor pursuant to of the Limited-Dividend Nonprofit Housing Association Law (C. 55:16-1 et seq.) (the “LD Law”), for a project to construct a senior-living residential rental building consisting of ninety (90) residential rental units located at 502-504 Summer Avenue, Newark, New Jersey 07104 and identified on the Official Tax Map of the City of Newark as Block 625, Lot 46 (the “Project”); and
WHEREAS, on May 11, 1978, the City of Newark (the “City”) entered into a Financial Agreement with the Assignor governing the tax abatement for the Project (the “Financial Agreement); and
WHEREAS, as set forth in Section 3 of the Financial Agreement, the Project shall be exempt from taxation for a period equal to the earlier of fifty (50) years from the completion of the Project or the term of the first mortgage to be placed upon the property in connection with its construction; and
WHEREAS, the Assignor has certified that the term of the first mortgage was for a period of fifty (50) years; and
WHEREAS, the Assignor has entered into a contract with Casa Mia Urban Renewal Company, LLC (the “Assignee”) to transfer its interest in the Project; and
WHEREAS, as set forth in Section 19(a) of the Financial Agreement, the City must consent to the transfer of the Project and the assignment of the Financial Agreement; and
WHEREAS, the Assignee has filed an application with the City (the “Application”) seeking City consent to the transfer of the Project and the Financial Agreement from the Assignor to the Assignee; and
WHEREAS, the City has reviewed Application and has determined that the Assignee has the capacity and experience to own and operate the Project and to assume all of the rights and obligations of the Assignor under the Financial Agreement; and
WHEREAS, the Municipal Council wishes to adopt this resolution in order to reflect the City’s consent to the transfer of the Project and the Financial Agreement to the Assignee and to authorize the Mayor to execute, on behalf of the City, an Assignment and Assumption Agreement between the City, Assignor and Assignee.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City hereby consents to: (i) the conveyance of the Project by Assignor to Assignee; and (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee.
2. The Municipal Council hereby authorizes the Mayor to enter into and execute, on behalf of the City, the Assignment and Assumption Agreement of Financial Agreement amongst the City, the Assignor and the Assignee (the “Assignment Agreement”) in the form attached hereto.
3. The long term tax abatement for the Project will expire in accordance with the terms of the Financial Agreement and will remain in effect until such time provided that the Assignee complies with all applicable State statutes, City Ordinances and Resolutions and terms of the Assignment Agreement and Financial Agreement. This resolution will not extend the period of the tax abatement beyond the date of expiration.
4. The Assignee shall pay all outstanding amounts due to the City, including without limitation, all water and sewer charges and all other amounts due under the Financial Agreement, within thirty (30) days of the adoption of this resolution.
5. The Assignment Agreement, once fully executed, shall be filed by the Deputy Mayor/Director of the Department of Economic and Housing Development with the Office of the City Clerk.
6. This resolution shall take effect immediately.
STATEMENT
This resolution memorializes the City’s consent to: (i) the transfer a Project containing a senior-living residential rental building consisting of ninety (90) residential rental units located at 502-504 Summer Avenue, Newark, New Jersey 07104 and identified on Official Tax Map of the City of Newark as Block 625, Lot 46 by Diversified Realty Limited, LLC to Casa Mia Urban Renewal Company, LLC; and (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee. This resolution also authorizes the Mayor to enter into and execute, on behalf of the City, an Assignment and Assumption Agreement with the Assignor and the Assignee in the form attached to the resolution.