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 3MB Properties, LLC to amend the Property Addresses and Sale Price
Entity Name: 3MB Properties, LLC
Entity Address: 39 Chapman Place, Irvington, New Jersey 07111
Sale Amount: $80,020.80
Cost Basis: (X) $10.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $216,400.00
Appraised Amount: N/A
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)
518 South 14th Street/Block 331/Lot 37/West Ward
651 South 10th Street/Block 2617/Lot 37/South Ward
892 South 20th Street/Block 3015/Lot 3/South Ward
Additional Information:
Resolution 7R2-d, adopted on September 21, 2022, 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 Property Addresses and Sale Price.
body
WHEREAS, on September 21, 2022, the Newark Municipal Council adopted Resolution 7R2-d (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 and Redevelopment of Land (“Agreement”), for the sale of the following City-owned property (the “Original Properties”) to 3MB Properties, LLC, 189 Shepard Avenue, Newark, New Jersey 07112 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the North and South Wards, no longer needed for public use, in accordance with the Third Amendment to the North Ward Redevelopment Plan, adopted by Ordinance 6S&Fa(S) on August 17, 2005, as amended, and the Third Amendment to the South Ward Redevelopment Plans, adopted by Ordinance 6S&Fd(S) on August 17, 2005, which govern the redevelopment of City-owned properties located within the North and South Wards, in the amount of Ninety Three Thousand Eight Hundred Dollars and Zero Cents ($93,800.00), with the cost basis of $10.00 per square foot (“Cost Basis”), to develop the Original Properties into three (3), two (2) family homes (“Project”):
ADDRESS BLOCK LOT SIZE SQ. FEET
|
121-123 3rd Avenue 892 South 20th Street 923 South 18th Street |
560 3015 3017 |
34 3 12 |
33X100 3,300 40X100 4,000 25X83.2 2,080 |
Total Square Footage: 9,380 sq. ft.
Total Purchase Price: $93,800.00 ($10.00 per sq. ft.); and
WHEREAS, pursuant to the Original Resolution, the Agreement, attached hereto as Exhibit A, was executed on or about June 12, 2023; and
WHEREAS, while undertaking efforts to transfer the Original Properties, pursuant to the Agreement and commence the Project, a defect in title was discovered for the following two properties, impeding the ability to consummate the transfer of the Original Properties: 121-123 3rd Avenue (Block 560, Lot 34) and 923 South 18th Street (Block 3017, Lot 12)(collectively “Clouded Title Properties”); and
WHEREAS, the Redeveloper still wishes to proceed with the Project and requested to purchase two alternate properties in order to complete the Project; and
WHEREAS, the Department of Economic and Housing Development has agreed to substitute the following two properties for the Clouded Title Properties:
ADDRESS BLOCK LOT SIZE SQ. FEET
518 South 14th Street 331 37 36.2x48.4 1752.08
651 South 10th Street 2617 37 25x90 2250
Square Footage: 4,002.08
(“Substituted Properties”); and
WHEREAS, the Square Footage of the Substituted Properties is 4,002.08 and the Square Footage of 892 South 20th Street (Block 3015; Lot 3), one of the Original Properties, is 4,000, and the Total Square Footage of the Substituted Properties and the one Original Property is 8,002.08; and
WHEREAS, pursuant to the Cost Basis, the Sale Price is now Eighty Thousand Twenty Dollars and Eighty Cents ($80,020.80) (“Amended Sale Price”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed the within and has agreed to allow the Redeveloper to proceed with the Project, incorporating the Substituted Properties to the Original Properties, based on the Amended Sale Price and further recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with Redeveloper (“Amended Agreement”); and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution and enter into the Amended Agreement in order to memorialize the terms and conditions, to include the Substituted Properties and the Amended Sale Price, 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. Resolution 7R2-d, adopted on September 21, 2022 (“Original Resolution”) by the Newark Municipal Council and the Agreement for the Sale and Redevelopment of Land (“Original Agreement””) are hereby amended to change the following:
• Properties:
|
Address |
Block |
Lot |
Size |
Square Feet |
Ward |
|
892 South 20th Street |
3015 |
3 |
40x100 |
4,000 |
South Ward |
|
518 South 14th Street |
331 |
37 |
36.2x48.4 |
1,752.08 |
West Ward |
|
651 South 10th Street |
2617 |
37 |
25x90 |
2,225 |
South Ward |
• Total Square Footage: 8,002.08
• Sale Price: $80,020.80
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 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 3MB Properties, LLC, 39 Chapman Place, Irvington, New Jersey 07111 (the “Redeveloper), for the private sale and rehabilitation of the following Properties, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A;12A-8(g), the terms and conditions of the attached Amended Agreement, and the West and South Ward Redevelopment Plans, as amended, to amend the Property Addresses and Sale Price:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
518 South 14th Street West 331 37 36.2X48.4 1,752.08
651 South 10th Street South 2617 37 25X90 2,250
892 South 20th Street South 3015 3 40X100 4,000
Total Square Footage: 8,002.80
Total Purchase Price: $80,028.00 ($10.00.00 per sq. ft.).
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
4. 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.
5. The executed Amended Agreement and the Quitclaim Deed 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.
6. 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.
7. 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.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Property. Said Quitclaim Deed conveying title to the Property to the Redeveloper shall be approved as to Form and Legality by the City’s Corporation Counsel and attested to and acknowledged by the City Clerk.
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 3MB Properties, LLC, 39 Chapman Place, Irvington, New Jersey 07111, to amend the Property Addresses and Sale Price.