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 Ascension Capital Partners I, LLC to, amend the scope of the Project
Entity Name: Ascension Capital Partners I, LLC
Entity Address: 59 Lincoln Park, Suite 200, Newark, New Jersey 07102
Sale Amount: $28,697.20
Cost Basis: () $PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $0.00
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)
45-47 Astor Street/Block 2812/Lot 22/East Ward
43 Astor Street/Block 2812/Lot 23/East Ward
41 Astor Street/Block 2812/Lot 24/East Ward
Additional Information:
Resolution 7R2-b adopted on January 10, 2018, 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 amend the Scope of the Project.
Deferred 7R2-b 120424
body
WHEREAS, on January 10, 2018, the Newark Municipal Council adopted Resolution 7R2-b (the “Original Resolution”), which authorized the Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale of Land and Redevelopment (“Agreement”), for the sale of the following City-owned property (the “Property”) to Ascension Capital Partners I, LLC, 59 Lincoln Park, Suite 200, 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 East Ward, no longer needed for public use, in accordance with Ordinance 6S&Fe(S) on August 17, 2005, adopting the First Amendment to the East Ward Redevelopment Plan, which governs the redevelopment of City-owned property located in the East Ward, in the amount of Twenty Eight Thousand Six Hundred Ninety-Seven Dollars and Twenty Cents ($28,697.20) with a cost basis of $4.00 per square foot (“Cost Basis”), to redevelop the Property into new construction of two (2) three (3) houses for affordable housing (“Scope of Project”):
ADDRESS WARD BLOCK LOT
45-47 Astor Street East 2812 22
43 Astor Street East 2812 23
41 Astor Street East 2812 24
And
WHEREAS, pursuant to the Original Resolution, the Agreement, attached hereto as Exhibit A, was executed on or about July 24, 2018 and as such the Property was transferred to Redeveloper; and
WHEREAS, the Redeveloper has actively worked towards the redevelopment of the site, but was not successful due to unrealized funding commitments; and
WHEREAS, as a result of the delays, Redeveloper did not redevelop the Property in accordance with the Agreement and has therefore requested an amendment of the Scope of Project in the Agreement; and
WHEREAS, the Redeveloper has asked the City to amend the Scope of Project from the original purpose of constructing two (2) three-family houses for affordable housing to construction of three (3) houses consisting of 16 units, of which 50% of the units (8) will target residents who earn between 51-80% of the Area Median Income (“AMI”) (the “Amended Scope of Project”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Scope of Project 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 Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Scope of Project, 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 change the purpose of the sale to reflect the Amended Scope of Project and enter into the 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. 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 Ascension Capital Partners I, LLC, 59 Lincoln Park, Suite 200, Newark, New Jersey 07102 (the “Redeveloper), to amend the Scope of Project from the original purpose of constructing two (2) three-family houses for affordable housing to construction of three (3) houses consisting of 16 units, of which 50% of the units (8) will target residents who earn between 51-80% of the Area Median Income (“AMI”) (the “Amended Scope of Project”) (“Amended Agreement”).
2. All other terms and conditions of the Agreement for the Sale of Land and Redevelopment (“Original Agreement”), authorized and entered into pursuant to Resolution 7R2-b adopted by the Newark Municipal Council on January 10, 2018, shall remain in full force and effect.
3. 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.
4. The executed Amended Agreement 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.
5. 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.
6. 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.
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 to Ascension Capital Partners I, LLC, 59 Lincoln Park, Suite 200, Newark, New Jersey 07102 (“First Amendment”), to amend the Scope of Project.