Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: To construct a new three-family home at 262-264 S.10th Street, for use as rental housing and rehabilitate 260 S. 10th Street into a three-family home, with one (1) unit being owner-occupied and two (2) units being offered as residential rental units.
Entity Name: Calloway Ventures, LLC
Entity Address: East Orange, New Jersey 07017
Sale Amount: $51,000.00
Cost Basis: (X) $6.00 and $10.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount:
$165,000.00 (Block 1797, Lot 51.03);
$27,500.00 (Block 1797, Lot 51.02) for a total combined assessment of $192,500.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within twelve (12) 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)
260 South 10th Street/Block 1797/Lot 51.03/West Ward
262-264 South 10th Street/Block 1797/Lot 51.02/West Ward
Additional Information:
Sale Price: Total Square Footage X PSF = 3,000 X $10.00 and 3500 X $6.00 = $51,000.00.
Sale at prices set forth by Ordinance 6S&Fh, adopted on April 7, 2004, establishing the minimum sale price of City-owned properties.
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WHEREAS, the Department of Economic and Housing Development seeks to approve the sale and redevelopment of the following City-owned properties located in the West Ward of the City of Newark:
|
ADDRESS |
BLOCK |
LOT(S) |
SQ. FEET |
PRICE PER SQ. FT. |
|
260 South 10th Street |
1797 |
51.03 |
3,000 |
$10.00 |
|
262-264 South 10th Street |
1797 |
51.02 |
3,500 |
$6.00 |
Total Square Footage: 6,500
Total Purchase Price: $51,000.00 ($6.00 and $10.00 per s.f.); and
WHEREAS, the City of Newark (the “City”) has determined that the above referenced City-owned properties (the “Properties”) are no longer needed for public use; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City is proceeding with the rehabilitation 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 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&Fc(S) on August 17, 2005, adopting the Second Amendment to the West Ward Redevelopment Plan, governing the redevelopment of City-owned properties located within the West Ward, which includes the above-referenced Properties; and
WHEREAS, the City received a Letter of Intent, attached as Exhibit A to the Redevelopment Agreement, also known as Proposal, for the purchase and redevelopment of the Properties from Calloway Ventures, LLC, 106 N. Grove Street, #703, East Orange, New Jersey 07017 (the “Redeveloper”); and
WHEREAS, the Redeveloper proposed to the City’s Department of Economic and Housing Development to build a newly constructed three-family home at 262-264 S.10th Street for use as rental housing and rehabilitate 260 S. 10th Street into a three-family home, with one (1) unit being owner-occupied and two (2) units being offered as residential rental units (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 for the Sale and Redevelopment of Land, the form of which is attached hereto (the “Agreement”), and the West 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 of Newark sell the Properties to Calloway Ventures, LLC, which is willing to purchase the Properties from the City, for the consideration of Fifty One Thousand Dollars and Zero Cents ($51,000.00), 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 West 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 of the City of Newark 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 (the “Agreement”) attached hereto with Calloway Ventures, LLC, 106 N. Grove Street, #703, East Orange, New Jersey 07017, 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 West Ward Redevelopment Plan, as amended:
|
ADDRESS |
BLOCK |
LOT(S) |
SQ. FEET |
PRICE PER SQ. FT. |
|
260 South 10th Street |
1797 |
51.03 |
3,000 |
$10.00 |
|
262-264 South 10th Street |
1797 |
51.02 |
3,500 |
$6.00 |
Total Square Footage: 6,500
Total Purchase Price: $51,000.00 ($6.00 and $10.00 per s.f.).
2. Said Properties shall be sold to Calloway Ventures, LLC, by private sale for the purpose of building a newly constructed three-family home at 262-264 S.10th Street for use as rental housing and rehabilitate 260 S. 10th Street into a three-family home, with one (1) unit being owner occupied and two (2) units being offered as residential rental units.
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’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 by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City’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 Properties 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, 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 the Department 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, adopted on 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, adopted on 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, adopted on April 5, 1995; the City of Newark’s Affirmative Action Plan, 7Rbp, adopted on 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, adopted on 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 twelve (12) months following the transfer of ownership of the Properties 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, 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 or delay in exercising its Right of Reverter shall not be deemed a waiver nor result in 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 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 an Agreement for the Sale and Redevelopment of Land with Calloway Ventures, LLC, 106 N. Grove Street, #703, East Orange, New Jersey 07017, for the private sale and redevelopment 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 West Ward Redevelopment Plan, as amended, for the purpose of building a newly constructed three-family home at 262-264 S.10th Street for use as rental housing and rehabilitate 260 S. 10th Street into a three-family home, with one (1) unit being owner occupied and two (2) units being offered as residential rental units:
|
ADDRESS |
BLOCK |
LOT(S) |
SQ. FEET |
PRICE PER SQ. FT. |
|
260 South 10th Street |
1797 |
51.03 |
3,000 |
$10.00 |
|
262-264 South 10th Street |
1797 |
51.02 |
3,500 |
$6.00 |
Total Square Footage: 6,500
Total Purchase Price: $51,000.00 ($6.00 and $10.00 per s.f.).