Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Construction of an eighty (80) to one hundred (100) unit residential apartment building, with a minimum of 20% designated as affordable housing, at 198-202 Meeker Avenue. Development of a truck and trailer parking facility at 847-983 Doremus Avenue, leveraging its proximity to the Port of Newark and surrounding industrial area for port-related use. Redevelopment of 77-101 Riverside Avenue for industrial use following a comprehensive environmental review, beginning with a site investigation report and completion of all necessary environmental remediation
Entity Name: 847-983 Doremus Avenue, LLC
Entity Address: 500 Avenue P, Newark, New Jersey 07105
Sale Amount: $4,000,000.00
Cost Basis: ( ) $ PSF (X) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $2,237,300.00
Appraised Amount: N/A
Contract Period: To commence within three (3) months and be completed within eighteen (18) months following transfer of property ownership from the City to the Redeveloper
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)
847-896 Doremus Avenue/ Block 5082 Lot 74/ East Ward
198-202 Meeker Avenue/Block 3730.01 Lot 2/ South Ward
77-83 Riverside Avenue/Block 674 Lot 4/ North Ward
85 Riverside Avenue/Block 674 Lot 3/ North Ward
87-101 Riverside Avenue/Block 674 Lot 5/ North Ward
Additional Information:
Sale Price: Negotiated = $4,000.000.00.
Sale at prices set forth by Ordinance 6S&Fh, adopted on April 7, 2004, establishing the minimum sale price of City-owned properties
body
WHEREAS, the purpose of this Resolution is to approve the sale and redevelopment of the following City-owned properties located in the South, East, and North Ward of the City of Newark:
|
ADDRESS |
BLOCK |
LOT(S) |
SIZE SQ. FEET |
|
847-896 Doremus Avenue |
5082 |
74 |
2.13 Acres |
|
198-202 Meeker Avenue |
3730.01 |
2 |
2.516 Acres |
|
77-83 Riverside Avenue |
674 |
4 |
100X179.9 17,990 |
|
85 Riverside Avenue |
674 |
3 |
30X155 4,650 |
|
87-101 Riverside Avenue |
674 |
5 |
200X132 26,400 |
which property has a total area of 251,493.36 square feet and a negotiated purchase price of $4,000,000; and
WHEREAS, N.J.S.A. 40A:12-13(a) provides that a municipality may sell any real property with or without capital improvements, not needed for public use, by open public sale at auction to the highest bidder after advertisement thereof in a newspaper circulated within the City; and
WHEREAS, N.J.S.A. 40A:12-13(a) further permits the City to establish a minimum bid price and to reserve its right to reject any and all bids with the reservation of the right to reject all bids where the highest bid is not accepted; and
WHEREAS, the City of Newark (the “City”) has determined that the above referenced City-owned property (the “Property”) is no longer needed for public use; and
WHEREAS, on March 06, 2020, the Department of Economic and Housing Development (“EHD”) conducted a public auction for the sale of the Property pursuant to N.J.S.A. 40A:12-13(a); and
WHEREAS, 847-983 Doremus Avenue, LLC, located at 500 Avenue P, Newark, New Jersey 07105, (“Redeveloper”), bid successfully for the following properties:
|
ADDRESS |
BLOCK |
LOT(S) |
SIZE SQ. FEET |
Bid Price |
|
847-896 Doremus Avenue |
5082 |
74 |
2.13 Acres |
$910,100.00 |
|
198-202 Meeker Avenue |
3730.01 |
2 |
2.516 Acres |
$850,010.00 |
|
77-83 Riverside Avenue |
674 |
4 |
100X179.9 17,990S Sq Ft |
$1,600,300.00 |
|
85 Riverside Avenue |
674 |
3 |
30X155 4,650 Sq Ft |
|
|
87-101 Riverside Avenue |
674 |
5 |
200X132 26,400 Sq Ft |
|
having a total square footage of 251,493.36 square feet and a negotiated purchase price of $4,000,000; and
WHEREAS, due to an issue with the auction platform, the Department recommends proceeding with the sale of the property pursuant to the Local Redevelopment and Housing Law, more specifically N.J.S.A. 40A:12A-8(g), rather than pursuant to the auction provisions of N.J.S.A. 40A:12-13(a); and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City of Newark is proceeding with the rehabilitation of the area in which the Property is situated and desires to convey the property at such price and upon such terms as it deems reasonable and in conjunction with the city’s applicable redevelopment plans; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City of Newark is proceeding with the rehabilitation of the area in which the Property is situated and desires to convey the property at such price and upon such terms as it deems reasonable and in conjunction with the city’s applicable redevelopment plans; and
WHEREAS, although the Department is not proceeding with the sale of the properties through the auction process, it is proceeding with the sale of the properties to the highest bidder from the auction at a negotiated price based on the appraised value of the properties, which is higher than their bid; and
WHEREAS, the Municipal Council previously adopted Resolution 7Rdo(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. (the “LRHL”); and
WHEREAS, the Municipal Council thereafter adopted Ordinance 6S&Fd(S) on August 17, 2005, adopting the Third Amendment to the South Ward Redevelopment Plan, Ordinance 6S&FA(AS) On August 17, 2005, Adopting the Third Amendment to the North Ward Redevelopment Plan and Ordinance 6S&FE On September 21, 2005, Adopting the Third Amendment to the East Ward Redevelopment Plan governing the redevelopment of City-owned property located within the which includes the above-referenced Properties; and
WHEREAS, the City received a Letter of Intent, attached as Exhibit A of the Agreement for the Sale and Redevelopment of Land (“Agreement”), also known as Proposal, for the purchase and rehabilitation of the Properties from 847-983 Doremus Avenue, 500 Avenue P, Newark, New Jersey 07105 (the “Redeveloper”); and
WHEREAS, the Redeveloper proposes to the City’s Department of Economic and Housing Development Construction of an eighty (80) to one hundred (100) unit residential apartment building, with a minimum of 20% designated as affordable housing, at 198-202 Meeker Avenue. Development of a truck and trailer parking facility at 847-983 Doremus Avenue, leveraging its proximity to the Port of Newark and surrounding industrial area for port-related use. Redevelopment of 77-101 Riverside Avenue for industrial use following a comprehensive environmental review, beginning with a site investigation report and completion of all necessary environmental remediation (the “Proposal”); and
WHEREAS, based upon the City’s review of the Proposal and other such information, the City has determined that the Redeveloper possesses the proper qualifications and requisite financial resources and capacity to acquire the Properties and to develop them in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the Agreement, the form of which is attached hereto , and the South Ward Redevelopment Plan, as amended; and
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development recommends that the City sell the Properties to Redeveloper, whom is willing to purchase the Properties from the City, for the consideration of 4 Million Dollars and Zero Cents ($4,000,000.00), for the purpose of rehabilitating said Properties in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the South Ward Redevelopment Plan, as amended.
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 Agreement for the Sale and Redevelopment of Land (“Agreement”) attached hereto with 847-983 Doremus Avenue, LLC,500 Avenue P., Newark, New Jersey 07105 (“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 Agreement and the South Ward Redevelopment Plan, as amended:
|
ADDRESS |
BLOCK |
LOT(S) |
SIZE SQ. FEET |
|
847-896 Doremus Avenue |
5082 |
74 |
2.13 Acres |
|
198-202 Meeker Avenue |
3730.01 |
2 |
2.516 Acres |
|
77-83 Riverside Avenue |
674 |
4 |
100X179.9 17,990 |
|
85 Riverside Avenue |
674 |
3 |
30X155 4,650 |
|
87-101 Riverside Avenue |
674 |
5 |
200X132 26,400 |
Total Square Footage: 251,493.36
Purchase Price: $4,000,000.00 (Negotiated Price)
2. Said Properties shall be sold to the Redeveloper, by private sale for the purpose of construction of Construction of an eighty (80) to one hundred (100) unit residential apartment building, with a minimum of 20% designated as affordable housing, at 198-202 Meeker Avenue. Development of a truck and trailer parking facility at 847-983 Doremus Avenue, leveraging its proximity to the Port of Newark and surrounding industrial area for port-related use. Redevelopment of 77-101 Riverside Avenue for industrial use following a comprehensive environmental review, beginning with a site investigation report and completion of all necessary environmental remediation.
.
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 Agreement annexed hereto and may enter into access and right of entry agreements and any related documents which may be necessary in order to effectuate the sale of the Properties and the terms and conditions of the Agreement, all in forms subject to the approval of the City of Newark’s Corporation Counsel.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the 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.
5. The Redeveloper shall be designated as the exclusive redeveloper of the Properties and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the Property is hereby rescinded.
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 Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached Agreement within this thirty (30) day time period, then 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 time period.
7. The Director of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety percent (90%) of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, November 6, 1985; and ten percent (10%) of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6S&Ff, June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale and Redevelopment of Land, the Quitclaim Deed, and all such other executed agreements authorized by this Resolution on file in the Office of the City Clerk.
9. The Redeveloper shall be required to comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, April 5, 1995; the City of Newark’s Affirmative Action Plan, 7Rbp, March 1, 1995; Federal Executive Order 11246, (as amended by Executive Orders 11375 and 12086) regarding the award of goods and services contracts; and the City of Newark Ordinance 6PSF-c June 17, 2015, Amending Title II, Administration, Chapter 4, General Administration, Section 20, Hiring of Newark Residents by Contractors or Other Persons Doing Business with the City of Newark and Section 21, Newark Residents’ Employment Policy, by Adding Language to Address Immediate Short Term Training and Employment Opportunities and Repealing the Newark Employment Commission, a copy of which is attached to the Agreement as Exhibit C (the “First Source Ordinance”), all as may be applicable. The Redeveloper shall provide the Department of Economic and Housing Development with the required forms showing compliance with the above, and a copy of these forms shall be filed with the Office of the City Clerk. In addition, the Redeveloper has agreed to ensure that thirty percent (30%) of all contractors, subcontractors and suppliers shall be Newark-based companies.
10. The development of the Properties shall commence within three (3) months and be completed within eighteen (18) months following the transfer of Properties ownership from the City to the Redeveloper.
11. The project to be implemented by the Redeveloper shall conform to the City of Newark Design Guidelines, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Additionally, the Redeveloper shall conduct any environmental investigation and remediation upon the Properties as may be necessary. Should the Redeveloper fail to diligently pursue the redevelopment of the Properties, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Properties back to the City, in accordance with the terms and conditions of the Agreement and the deed. The City’s failure to exercise or delay in exercising this Right of Reverter shall not constitute a waiver nor shall such failure and/or delay serve as a basis for Adverse Possession of the Properties. Any and all waivers of the City’s Right of Reverter shall be in writing.
12. 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 Properties. Said Quitclaim Deed conveying title to the Properties 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, 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 with 847-983 Doremus Avenue, LLC,500 Avenue P., Newark, New Jersey 07105, 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 Agreement for the Sale and Redevelopment of Land and the South Ward Redevelopment Plan, as amended, Construction of an eighty (80) to one hundred (100) unit residential apartment building, with a minimum of 20% designated as affordable housing, at 198-202 Meeker Avenue. Development of a truck and trailer parking facility at 847-983 Doremus Avenue, leveraging its proximity to the Port of Newark and surrounding industrial area for port-related use. Redevelopment of 77-101 Riverside Avenue for industrial use following a comprehensive environmental review, beginning with a site investigation report and completion of all necessary environmental remediation
|
ADDRESS |
BLOCK |
LOT(S) |
SIZE SQ. FEET |
|
847-896 Doremus Avenue |
5082 |
74 |
2.13 Acres |
|
198-202 Meeker Avenue |
3730.01 |
2 |
2.516 Acres |
|
77-83 Riverside Avenue |
674 |
4 |
100X179.9 17,990 |
|
85 Riverside Avenue |
674 |
3 |
30X155 4,650 |
|
87-101 Riverside Avenue |
674 |
5 |
200X132 26,400 |
Total Square Footage: 251,493.36
Purchase Price: $4,000,000.00 (Negotiated Price)