Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Assignment of Contract Agreement
Purpose: Resolution consenting to the Assignment of the Financial Agreement from Riverfront Quarters Urban Renewal, LLC, to Riverview Lofts Urban Renewal, LLC for a Residential Rental Project located at 638-646 Raymond Boulevard, Newark, New Jersey 07105 and identified on the Official Tax Map of the City of Newark, as Block 2020, Lot 4.
Entity Name: Riverview Lofts Urban Renewal, LLC
Entity Address: 1405 N Broad Street, Hillside, NJ 07205
Abatement Period: Term of tax abatement remaining years upon transfer.
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
(Address/Block/Lot/Ward)
(638-646 Raymond Boulevard, Newark, New Jersey 07105 and identified on the Official Tax Map of the City of Newark, as Block 2020, Lot 4
Additional Information:
Original tax abatement granted by Ordinance 6PSF-d 091824
body
WHEREAS, on September 18, 2024, the Municipal Council adopted Ordinance 6PSF-d granting a long term tax abatement to Riverfront Quarters Urban Renewal, LLC, 30 Princeton Road, Linden, New Jersey 07036 (the “Assignor”) pursuant to the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. for the construction of sixty-four (64) residential rental units consisting of fifty-one (51) market-rate residential rental units (the “Market Rate Units”), thirteen (13) affordable housing rental units, of which three (3) units shall be restricted to tenants at 40% of Area Median Income (“AMI”), three (3) units shall be restricted to tenants at 60% AMI, and seven (7) units shall be restricted to tenants at 80% AMI (collectively, the “Income Restricted Units”), along with residential amenities including a fitness room, a 997 square foot lounge, rooftop deck amenity area, which includes seating areas, and a rooftop pergola, and 8,712 square feet of covered parking area located at 638-646 Raymond Boulevard, Newark, New Jersey and identified on the City’s tax map as Block 2020, Lot 4 (the “Project”); and
WHEREAS, as authorized under Ordinance 6PSF-d, on November 5, 2024, the City entered into and fully executed a Financial Agreement with the Assignor governing the tax abatement for the Project (the “Original Financial Agreement”, a copy of which is attached hereto as Exhibit A); and
WHEREAS, Assignor entered into an agreement with Assignee to purchase the Property and continue the development of the Project; and
WHEREAS, the Assignee has filed an application with the City (the “Application”) seeking City consent nunc pro tunc to the transfer of the Project and the Financial Agreement from the Assignor to the Assignee; and
WHEREAS, the City has reviewed the Application and has determined that the Assignee has the capacity and experience to own and operate the Project and to assume all of the rights and obligations of the Assignor under the Financial Agreement; and
WHEREAS, the Municipal Council wishes to adopt this Resolution in order to reflect the City’s consent to the transfer of the Project and the Financial Agreement to the Assignee and to authorize the Mayor of the City of Newark to enter into and execute, on behalf of the City, an Assignment and Assumption Agreement between the City, Assignor and Assignee.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City of Newark hereby consents nunc pro tunc to: (i) the conveyance of the Project by Assignor to Assignee; and (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee.
2. The Municipal Council hereby authorizes the Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute, on behalf of the City, the Assignment and Assumption Agreement of the Financial Agreement amongst the City, the Assignor and the Assignee (the “Assignment Agreement”) in the form attached hereto.
3. The long term tax abatement for the Project will be effective and will remain in effect pursuant to the time periods provided in the Original Financial Agreement until such time provided in the Financial Agreement and the Assignee complies with all applicable State statutes, City Ordinances and Resolutions and terms of the Assignment Agreement and Financial Agreement. This Resolution will not extend the period of the tax abatement beyond the date set forth in the Financial Agreement.
4. The Assignee shall pay all outstanding amounts due to the City, including without limitation, all taxes, special taxes, water and sewer charges and all other amounts due under the Financial Agreement, within thirty (30) days of the adoption of this Resolution.
5. The Assignment Agreement, once fully executed, shall be filed by the Deputy Mayor/Director of the Department of Economic and Housing Development with the Office of the City Clerk.
6. This Resolution shall take effect immediately.
STATEMENT
This Resolution memorializes the City of Newark’s consent nunc pro tunc to: (i) transfer the sixty-four (64) residential rental unit project consisting of fifty-one (51) market-rate residential rental units, thirteen (13) affordable housing rental units, along with residential amenities including a fitness room, a 997 square foot lounge, rooftop deck amenity area, which includes seating areas, and a rooftop pergola, and 8,712 square feet of covered parking area located at 638-646 Raymond Boulevard, Newark, New Jersey and identified on the City’s tax map as Block 2020, Lot 4 to Riverview Lofts Urban Renewal, LLC; and (ii) the assignment of the Financial Agreement governing the Project from the Assignor to the Assignee. This Resolution also authorizes the Mayor of the City of Newark to enter into and execute, on behalf of the City, an Assignment and Assumption Agreement with the Assignor and the Assignee in the form attached to the Resolution.