Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Complete redevelopment site assemblage for property inadvertently omitted from purchase at September 16, 2014 auction
Entity Name: Waleed Mohammad and Muhmood Ahmadi
Entity Address: 107 Walnut Street, Livingston, New Jersey 07039
Sale Amount: $18,500.00
Cost Basis: ( ) $ PSF (X ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $60,400.00
Appraised Amount: $N/A
Contract Period: To be commenced within 3 months and be completed within 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)
482 Springfield Avenue/Block 306/Lot 56/Central Ward
Additional Information:
Resolution 7R3-E(AS) Adopted 10/01/14; Accepted purchasers bid for properties 478 and 480 Springfield Avenue, Block 306, Lots 55 and 54, Central Ward
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WHEREAS, on September 16, 2014, the Department of Economic and Housing Development conducted a public auction for the sale of City-owned properties known as 478 and 480 Springfield Avenue, Newark, New Jersey, Block 306, Lots 54 and 55; and
WHEREAS, Waleed Mohammad and Muhmood Ahmadi (the “Purchasers”), whose mailing address is 107 Walnut Street, Livingston, New Jersey, 07039, submitted a bid to purchase the above-mentioned properties for One Hundred Seventy Thousand Dollars and No Cents ($170,000.00); and
WHEREAS, the Municipal Council of the City of Newark, adopted resolution 7R3-e(as) on October 1, 2014 which accepted the bid of the Purchasers, and authorized the Deputy Mayor/Director of Economic and Housing Development to effectuate the sale through a Quitclaim Deed; and
WHEREAS, the Purchasers closed title with the City of Newark on February 5, 2015; and
WHEREAS, in order to complete the redevelopment of the site the Purchasers have negotiated an offer of an additional Eighteen Thousand Five Hundred Dollars and No Cents ($18,500.00) to acquire the adjacent City-owned property known as 482 Springfield Avenue, Newark, New Jersey, Block 306, Lot 56 (the “Property”), which was inadvertently omitted from the above assemblage at the time of the auction; and
WHEREAS, the City of Newark has determined that the Property is no longer needed for public use, and pursuant to N.J.S.A. 40A:12A-8(g), is proceeding with the redevelopment of the area and is conveying properties at such prices and upon such terms as it deems reasonable and said conveyance is made in conjunction with the applicable Redevelopment Plan, as amended; and
WHEREAS, the Municipal Council previously adopted Resolution 7RD-O(AS) on June 15, 2005, designating the entire City as an “area in need of rehabilitation” under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq.; and
WHEREAS, the Municipal Council thereafter adopted Ordinance 6PhS+FE(S) on August 17, 2005, approving the First Amendment to the Central Ward Redevelopment Plan governing the redevelopment of City-owned properties located within the Central Ward, which includes the Property; and
WHEREAS, the Department of Economic and Housing Development has determined that the Purchasers possess the proper qualifications and requisite financial resources and capacity to acquire the Property and to redevelop it in accordance with the requirements of N.J.S.A. 40A:12A-8(g), pursuant to the above-mentioned statutory authority; and
WHEREAS, the Department of Economic and Housing Development recommends that the City of Newark sell the Property to Waleed Mohammad and Muhmood Ahmadi, who is willing to purchase the Property from the City for the consideration of Eighteen Thousand Five Hundred Dollars and No Cents ($18,500.00) for the purpose of redeveloping said Property in accordance with the requirements of N.J.S.A. 40A:12A-8(g), and First Amendment to the Central Ward Redevelopment Plan, and pursuant to the terms and conditions set forth in Resolution 7R3-e(AS), adopted on October 1, 2014.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City of Newark hereby accepts the offer of Waleed Mohammad and Muhmood Ahmad to purchase the City-owned property known as 482 Springfield Avenue, Newark, New Jersey, Block 306, Lot 56 for the sum of Eighteen Thousand Five Hundred Dollars and No Cents ($18,500.00) in accordance with the requirements of N.J.S.A. 40A:12A-8(g), and First Amendment to the Central Ward Redevelopment Plan, and pursuant to the terms and conditions set forth in Resolution 7R3-e(AS), adopted on October 1, 2014.
2. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate the sale of the Property through Quitclaim Deed, and all other documents pertaining to the sale of the Property, all in forms subject to the approval of the City of Newark Corporation Counsel. Said Quitclaim Deed shall have a deed restriction that requires that the redevelopment of the Property shall be commenced within three (3) months and be completed within eighteen (18) months from the transfer of ownership by the City to the Purchasers, and in all respects and with all provisions, the terms and conditions set forth in Resolution 7R3-e(As), adopted on October 1, 2014.
3. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Purchasers for the Property. Said Quitclaim Deed conveying title to the Property to the Purchaser shall be approved as to form and legality by the City’s Corporation Counsel and attested to and acknowledged by the City Clerk.
4. The Director of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety (90) percent of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund (026 BS 3210) established under Resolution 7RG dated November 6, 1985; and ten (10) percent of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund (026 BS 3035) established under City Ordinance 6PhS&FF dated June 21, 2006 for the purpose of preserving low and moderate income affordable housing.
STATEMENT
This resolution authorizes the Deputy Mayor/Director of the Department of Economic and Housing Development to effectuate the sale of 482 Springfield Avenue, Newark, New Jersey, Block 306, Lot 56 through a Quitclaim to Waleed Mohammad and Muhmood Ahmadi, 107 Walnut Street, Livingston, New Jersey, 07039, for redevelopment in accordance with the requirements of N.J.S.A. 40A:12A-8(g), and First Amendment to the Central Ward Redevelopment Plan, and pursuant to the terms and conditions set forth in resolution 7R3-e(AS), adopted on October 1, 2014 for a consideration of Eighteen Thousand Five Hundred Dollars and No Cents ($18,500.00).