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AN ORDINANCE AUTHORIZING, PURSUANT TO THE NEW JERSEY “LOCAL LANDS AND BUILDINGS LAW,” N.J.S.A. 40A: 12-4, THE CITY OF NEWARK TO ACQUIRE A PERMANENT EASEMENT FROM GRANTOR, AS DEFINED IN THIS ORDINANCE, ON, ACROSS, AND UNDER THAT PORTION OF GRANTOR’S PROPERTY WHERE THE PERMANENT EASEMENT AREAS ARE LOCATED IN ACCORDANCE WITH THE TERMS OF THE PERMANENT EASEMENT AGREEMENT, ATTACHED HERETO AS EXHIBIT A AND MADE A PART OF THIS ORDINANCE, IN ORDER FOR THE CITY OF NEWARK’S DEPARTMENT OF WATER AND SEWER UTILITIES TO CLEAN, REPAIR, REPLACE, INSPECT, OPERATE, AND OTHERWISE MAINTAIN IN AN UNOBSTRUCTED CONDITION A SYSTEM OF WATER, STORMWATER AND SANITARY SEWER DRAINAGE PIPE LINES.
Deferred 6PSF-n 121824
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WHEREAS, N.J.S.A. 40A:12-4 authorizes a municipality to acquire easements; and
WHEREAS, N.J.S.A. 40A:12-5 requires that the acquisition of easements by municipalities be accomplished by ordinance; and
WHEREAS, the City of Newark, a municipal corporation of the State of New Jersey, 900 Mayor Kenneth A. Gibson Boulevard, Newark, New Jersey 07102 (the “Grantee”) wishes to enter into a Permanent Access and Utility Easement and Dedication of Public Utility Agreement (the “Permanent Easement Agreement”) with NJPAC TSD 1 LLC, a limited liability company of the state of New Jersey, One Center Street, Newark, New Jersey 07102 (“NJPAC TSD”), as successor in interest to New Jersey Performing Arts Center Corporation, a corporation of the state of New Jersey, One Center Street, Newark, New Jersey 07102 (hereinafter, “NJPAC”); NJPAC; Center Street Condominium Association, Inc., a New Jersey not-for-profit corporation, One Center Street, Newark, New Jersey 07102 (“Land Condo Association”), and Center Street Owners Urban Renewal LLC, a New Jersey limited liability company, having an address of One Center Street, Newark, New Jersey 07102, (“CSOUR”, and together with all above parties (individually and collectively “Grantor” and jointly referred to as “Grantors”), Grantee and Grantors may be referred to individually as a “Party” and collectively as the “Parties.”); and
WHEREAS, pursuant to a Master Deed dated March 19, 2024 (the “Master Deed”), as amended by a First Amendment to Master Deed to be entered into and recorded simultaneously, NJPAC submitted Block 17, Lot 1.02, to the condominium form of ownership comprised of four (4) condominium units and associated common elements, limited common elements, easements and other rights and obligations appurtenant to each of the condominium units (the real property thereunder, the “Land”, and as separated according to each condominium unit together with the appurtenant interests, “Land Units”); and
WHEREAS, the Master Deed was recorded with the Essex County Register of Deeds and Mortgages on March 21, 2024, as Instrument No. 2024016776. The condominium created by recording of the Master Deed is referred to as the Center Street Condominium (together with all exhibits and schedules therein, as amended from time to time, the “Land Condominium Master Deed” and such regime, the “Land Condominium”); and
WHEREAS, the Land Condo Association is granted certain rights and charged with certain obligations with respect to the Land Condominium and the Common Elements therein (as defined in the Land Condominium Master Deed), and whereas the Lot 1.02 Easement Area (as defined below) touches and concerns part of the Common Elements under the Land Condominium; and
WHEREAS, NJPAC is the owner of real property designated as Land Unit 1 on Block 17, Lot 1.02 (the “NJPAC Property”) which is more particularly described on Exhibit “A1” to the Permanent Easement Agreement, attached hereto as “Exhibit A” and made a part of this Ordinance; and
WHEREAS, NJPAC TSD is the owner of real property designated as Land Unit 2 and Land Unit 4 on Block 17, Lot 1.02 (the “Artside Property”) which is more particularly described on Exhibit “A2” to the Permanent Easement Agreement, attached hereto as Exhibit A and made a part this Ordinance; and
WHEREAS, NJPAC TSD is the owner of real property designated as Land Unit 3 on Block 17, Lot 1.02 (the “NJPAC TSD Property”) which is more particularly described on Exhibit “A3” to the Permanent Easement Agreement, attached hereto as Exhibit A and made a part this Ordinance; and
WHEREAS, Land Condo Association is granted certain rights and charged with certain obligations with respect to certain real property designated as Common Elements on Block 17, Lot 1.02 as subjected to the Land Condominium (the “Land Condominium Common Property” and together with the NJPAC Property and the NJPAC TSD Property, collectively, the “Property”), which is more particularly described on record in the Land Condominium Master Deed; and
WHEREAS, pursuant to that certain Amended and Restated Ground and Condominium Units Lease, to be entered into between NJPAC TSD and CSOUR (the “Ground Lease”), CSOUR is the long-term tenant of the Artside Property, which is first being further subjected to a sub-condominium regime and condominium form of ownership pursuant to a Master Deed to be entered into and recorded simultaneously herewith, which shall establish four (4) sub-condominium units in connection with a mixed-use development to be constructed and operated by CSOUR, as tenant of such four (4) sub-condominium units under the Ground Lease (together with all exhibits and schedules to the Master Deed, as amended from time to time, the “Sub-Condominium Master Deed” and such regime the “Artside Sub-Condominium”); and
WHEREAS, NJPAC plans to develop a mixed use commercial/residential development and associated parking and other improvements, on the NJPAC Property; and
WHEREAS, NJPAC TSD and CSOUR plan to develop a mixed use commercial/residential development and associated parking and other improvements on the Artside Property (the “Artside Project”); and
WHEREAS, NJPAC TSD, through an affiliate, plans to develop a mixed-use residential development and associated parking and other improvements on the NJPAC TSD Land Unit 3 Property (the “Land Unit 3 Project” and together with such Artside Project and NJPAC Project, the “Lot 1.02 Projects”); and
WHEREAS, as a part of the Lot 1.02 Projects, Grantors intend to construct at the sole cost and expense of Grantors (as such amounts shall be allocated among the Grantor parties), water, stormwater and sanitary sewer lines on the Property pursuant to plans approved by Grantee, in order to connect with Grantee’s existing water and sewer lines adjacent to the Property on Center Street, McCarter Highway and Rector Street; and
WHEREAS, upon its completion, it is intended that the Lot 1.02 Projects will improve the reliability of the Newark stormwater collection system; and
WHEREAS, Grantee has agreed to Grantor’s construction of the proposed utility improvements (the “Grantor Improvements”) more particularly described on the site plans attached as Exhibit “B1” to the Permanent Easement Agreement, which is attached hereto as “Exhibit A” and made a part of this Ordinance, which Exhibit “B1” is entitled “Block 17, Lot 1.02, Proposed Water & Sewer Easements 1 & 2”, prepared by Brad Joshnick, PLS of Paulus, Sokolowski and Sartor, LLC, dated August 30, 2024, and as further described by metes and bounds descriptions entitled “Proposed Water & Sewer Easement 1, Block 17, Lot 1.02, City of Newark, Essex County, New Jersey” and “Proposed Water & Sewer Easement 2” attached as Exhibits “B2” and “B3”, respectively, to the Permanent Easement Agreement, attached hereto as “Exhibit A” and made a part of this Ordinance (the “Permanent Easement Areas”) in accordance with the terms of a Memorandum dated December 18, 2023 prepared by Asadullah Jamali, also known as AJ, PE, principal engineer of the Newark Department of Water and Sewer Utilities, a copy of which is attached as Exhibit “C” to the Permanent Easement Agreement, attached hereto as “Exhibit A” and made a part of this Ordinance (“Grantee Memorandum”); and
WHEREAS, in furtherance of Grantor’s Project, and for the purpose of Grantee’s maintenance of the Grantor Improvements after installation, Grantee has requested and Grantor has agreed to convey to Grantee a permanent easement on, across, and under that portion of Grantor’s Property where the Permanent Easement Areas are located in accordance with the terms of the Permanent Easement Agreement, attached hereto as Exhibit A and made a part this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
SECTION 1. Pursuant to the New Jersey “Local Lands and Buildings Law,” N.J.S.A. 40A:12-4 the Grantee is hereby authorized to acquire a Permanent Non-Exclusive Easement from Grantor on, across, and under that portion of Grantor’s Property where the Permanent Easement Areas are located in accordance with the terms of the Permanent Easement Agreement, attached hereto as Exhibit A and made a part this Ordinance, in order for the City of Newark’s Department of Water and Sewer Utilities to be able to inspect, operate, maintain, manage, repair, alter, replace, improve, relocate, remove and re-construct mains, manholes and related appurtenances, of the same, located in, on, across and under the Permanent Easement Areas as may be reasonably required.
SECTION 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 a Permanent Access and Utility Easement and Dedication of Public Utility Agreement, in the substantially the form attached hereto as Exhibit A, granting a Permanent Non-Exclusive Easement on, over, under, upon, across and through the Permanent Easement Areas, any and all other documents which may be necessary, in order to effectuate the Permanent Non-Exclusive Easement upon and across the Permanent Easement Areas all in forms subject to the approval of the City’s Corporation Counsel.
SECTION 3. The Director of the Department of Finance is hereby authorized to place the consideration of One Dollar and Zero Cents ($1.00) into the Redevelopment Trust Fund.
SECTION 4. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Permanent Easement Agreement on file in the Office of the City Clerk and shall direct Grantor to record same in the land records of Essex County.
SECTION 5. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
Ordinance authorizing, pursuant to the New Jersey “Local Lands and Buildings Law,” N.J.S.A. 40A: 12-4, the Grantee to acquire a permanent easement from Grantor, as defined in this Ordinance, on, across, and under that portion of Grantor’s Property where the Permanent Easement Areas are located in accordance with the terms of the Permanent Easement Agreement, attached hereto as Exhibit A and made a part this Ordinance, in order for the City of Newark’s Department of Water and Sewer Utilities to be able to inspect, operate, maintain, manage, repair, alter, replace, improve, relocate, remove and re-construct mains, manholes and related appurtenances, of the same, located in, on, across and under the Permanent Easement Areas as may be reasonably required.