Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Settlement of Civil Litigation
Docket No.: ESX-L-1849-19
Claimant: CenterPoint Properties Trust v. Municipal Council of the City of Newark, Newark Central Planning Board, and City of Newark
Claimant's Attorney: Elnardo J. Webster, II, Esq.
Attorney's Address: Inglesino, Webster, Wyciskala & Taylor, LLC, 600 Parsippany Road, Suite 204, Parsippany, New Jersey 07054
Settlement Amount: $0.00
Funding Source: Not Applicable
Account Code Line:
Additional Comments:
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WHEREAS, the Newark Municipal Council (the “Municipal Council”) adopted Resolution 7R2-a, on January 19, 2019, which authorized the Board to conduct a preliminary investigation of a designated study area located at Doremus Avenue (“Study Area”) to determine whether those certain properties located within the Study Area qualify as a “Condemnation Redevelopment Area” pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (“LRHL”); and
WHEREAS, Deltech is the owner of real property known as 17-89 Rutherford Street, Newark, New Jersey, and designated as Block 5050.01, Lot 15 on the Official Tax Map of the City of Newark, New Jersey and the property located at 91-127 Rutherford Street, Newark, New Jersey, and designated as Block 5056, Lot 26 on the Official Tax Map of the City of Newark, New Jersey (collectively referred to as the “Property”); and
WHEREAS, CenterPoint is the contract purchaser of the Property; and
WHEREAS, the Property was included within the Study Area; and
WHEREAS, Topology New Jersey, LLC (“Topology”), in cooperation with the City and the Newark Community Economic Development Corporation, conducted a preliminary investigation to determine whether the designation of the Study Area as an area in need of redevelopment is appropriate and in conformance with the statutory criteria set forth in N.J.S.A. 40A:12A-5; and
WHEREAS, the report, prepared by Topology, dated October 6, 2017, and entitled “Doremus Avenue in Need of Redevelopment Investigation Report” states that, based upon the Property’s inclusion in the Industrial River Urban Renewal Project Area (Project NJR-121), (“Industrial River Area”), and the Council’s prior designation of the Property as blighted by resolution of November 6, 1963 (“1963 Resolution”), the prior designation of the Property by the 1963 Resolution remains valid and no further action is necessary; and
WHEREAS, on November 20, 2017, and continuing on December 18, 2017, January 8, 2018, January 29, 2018, and March 5, 2018, the Board conducted public hearings; and
WHEREAS, on March 5, 2018, the Board voted to recommend that the Study Area be designated by the Municipal Council as an “area in need of redevelopment” with condemnation rights; and
WHEREAS, by Resolution, dated April 23, 2018, the Board memorialized its decision to recommend that the Study Area be designated as an “Condemnation Redevelopment Area; and
WHEREAS, on June 7, 2018, the Municipal Council adopted Resolution 7R2-d(S) as amended determining that the Property, among others, qualifies as “Condemnation Redevelopment Area” pursuant to the LRHL; and
WHEREAS, upon further review of Resolution 7R2-d(S), on January 23, 2019, the Municipal Council adopted Resolution 7R2-a, on January 19, 2019, as amended, determining that the Property, among others, qualifies as a Condemnation Redevelopment Area” pursuant to the LRHL; and
WHEREAS, on July 23, 2018, Deltech filed a Complaint Action in Lieu of Prerogative Writs in the Superior Court of New Jersey, Law Division, entitled Deltech Properties, LLC, v. Municipal Council of the City of Newark, et als., Docket No.: ESX-L-5117-18 challenging the Board’s recommendation and the Municipal Council’s subsequent determination that the Property qualifies as a Condemnation Redevelopment Area, pursuant to the LRHL; (“Deltech Litigation”) and
WHEREAS, the City Defendants and Deltech have resolved the Deltech Litigation evidenced by a Stipulation of Dismissal filed with the Court on May 23, 2019; and
WHEREAS, on March 8, 2019, CenterPoint filed a Complaint Action in Lieu of Prerogative Writs in the Superior Court of New Jersey, Law Division, entitled CenterPoint Properties Trust v. Municipal Council of the City of Newark, et als., Docket No.: ESX-L-1849-19, challenging the Board’s recommendation and the Newark Municipal Council’s subsequent determination that the Property qualifies as a Condemnation Redevelopment Area, pursuant to the LRHL (“CenterPoint Litigation”); and
WHEREAS, the City Defendants and CenterPoint Properties Trust have reached a settlement of this dispute in order to avoid additional litigation costs; and
WHEREAS, this Settlement Agreement and General Release neither admits nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into to resolve this matter and prevent the incurring of additional costs and fees; and
WHEREAS, the City of Newark has determined that it is in the best interest of the taxpayers to settle and avoid the cost, expense, delay and uncertainty of litigation; and
WHEREAS, the terms of the settlement are set forth in the Settlement Agreement and General Release and does not include any monetary payment on the part of the City to the Plaintiff.
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 Corporation Counsel, is authorized, on behalf of the City of Newark to negotiate and execute a Settlement Agreement and Release, and any other documents, sufficient in form and content to the Corporation Counsel and to take whatever actions are necessary to effectuate the terms of the within resolution and settlement of this matter pursuant to the terms contained in the within resolution.
2. The Municipal Council authorizes the City of Newark to enter into a Redevelopment Agreement with CenterPoint to develop the property into a modern functional warehouse facility of approximately 185, 917 square feet, which will include one (1) industrial warehouse with twenty-one (21) loading docks, eighty-three (83) trailer spaces, and one hundred sixty-six (166) car spaces. The property project will be consistent with the Industrial River Project Urban Renewal Plan.
3. In exchange for the execution by CenterPoint of the Settlement Agreement and Release, acceptable in the form to the Corporation Counsel and after passage of this resolution and upon receipt by the Corporation Counsel, the parties will enter into a Redevelopment Agreement and a Stipulation of Dismissal will be filed once the Redevelopment Agreement is executed; the site plan is approved; and the adoption and execution of a Financial Agreement.
4. The settlement and resolution does not admit nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigation costs.
5. The Corporation Counsel shall file a fully executed copy of the Settlement Agreement and Release in the Office of the City Clerk.
6. This resolution shall be effective upon adoption in accordance with applicable State law.
STATEMENT
This resolution authorizes the Corporation Counsel on behalf of the City of Newark to resolve the CenterPoint Litigation, without the need and expense of future litigation. This resolution and Settlement Agreement resolves the pending matter entitled CenterPoint Properties Trust v. Municipal Council of the City of City of Newark, et als., Docket No.: ESX-L-1849-19. In return, CenterPoint agrees to file a Stipulation of Dismissal upon the execution of a Redevelopment Agreement; Site Plan Approval; and adoption and execution of Financial Agreement.