Title
Dept/ Agency: Administration/Office of the Business Administrator
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Accepting a Donation/Gift
Gift: $13,458.82
Purpose: Acceptance of charitable gift from The Prudential Insurance Company of America in the amount of $13,458.82 remaining in a Development Agreement escrow account
Entity Name: The Prudential Insurance Company of America
Entity Address: 751 Broad Street, Newark, New Jersey 07102
Gift Value: $13,458.82
City Contribution: $0.00
Other Funding Source/Amount: N/A
Contract Period: N/A
Additional Information:
Body
WHEREAS, The Prudential Insurance Company of America (“Prudential”) received approval for, and commenced the construction of, a three (3)-phased development on property designated as Block 51 and Block 52 on the Tax Map of the City of Newark (“Property”). Prudential completed (i) the Phase 1 development of a 20-story office building along with an accessory parking garage and retail space on Block 51 (“Phase 1 Development”), which is bordered by Broad Street, Halsey Street, New Street, and (former) West Park Street, and (ii) the Phase 2 development consisting of demolition of some of the existing structures located on Block 52 and the construction and/or improvement of retail uses along portions of Broad and Halsey Streets on Block 52. The remainder of Block 52 was developed with a short-term surface parking lot and will be maintained as green open space until such time as Phase 3 may be developed; and
WHEREAS, to construct the Phase 1 Development, Prudential needed to acquire certain properties owned by the City and identified as Block 51, Lots 1, 49, 50 and 59 (collectively, the “City Lots”); and
WHEREAS, Prudential and the City entered into a written Development Agreement dated as of June 26, 2012 (“Development Agreement”), and under Section 4.6 thereof, Prudential agreed to reimburse the City for legal and other consulting fees incurred by the City in assisting the City with (i) the sale of the City Lots to Prudential, and (ii) the Redevelopment Project (as defined in the Development Agreement); and
WHEREAS, during the term of the Development Agreement, Prudential deposited a total of $550,000.00 with the City and there remains an escrow balance of $13,458.82; and
WHEREAS, The Prudential Insurance Company of America agrees to donate the remaining escrow balance in the amount of $13,458.82 as a charitable gift and expects nothing in return, and will receive nothing in return; and
WHEREAS, the City of Newark wishes to accept this gift pursuant to N.J.S.A. 40A:5-29.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Pursuant to N.J.S.A. 40A:5-29, the Mayor and/or his designee, the Business Administrator, on behalf of the City of Newark, is authorized to accept the charitable gift from The Prudential Insurance Company of America in the amount of $13,458.82 remaining in a Development Agreement escrow account.
2. No municipal funds will be expended in connection with this charitable gift. No consideration in any form will be provided to The Prudential Financial Insurance Company of America or any of its affiliated and related entities in exchange for this charitable gift.
3. The City of Newark assert that they expect nothing in return for the gift to the City of Newark.
STATEMENT
This resolution hereby ratifies and authorizes the Mayor and/or his designee, the Business Administrator, to accept the charitable gift from The Prudential Insurance Company of America in the amount of $13,458.82 remaining in a Development Agreement escrow account. No municipal funds will be expended in connection with this charitable gift. No consideration in any form will be provided to The Prudential Insurance Company of America or any of its affiliated and related entities in exchange for this charitable gift.