Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to the Agreement for the Sale and Redevelopment of Land to Genesis Capital Investments, LLC to change the Entity Name and Replace one of the Properties
Entity Name: Genesis Capital 2, LLC
Entity Address: 100 Charles Ewing Boulevard, Suite 16, Ewing, New Jersey 08628
Sale Amount: $61,794.00
Cost Basis: (X) $6.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $84,400.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within eighteen (18) months from the transfer of ownership by the City
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)
142 South 13th Street/Block 1859/Lot 41/West Ward
126 South 13th Street/Block 1859/Lot 49/West Ward
105 South 13th Street/Block 1860/Lot 9/ West Ward
40 Gladstone Avenue/Block 4003/Lot 32/West Ward
Additional Information:
Resolution 7R2-c, adopted on December 20, 2023, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
This Resolution authorizes a First Amendment to the Agreement for the Sale and Redevelopment of Land to change the Entity Name and Replace one of the Properties.
body
WHEREAS, on December 20, 2023, the Newark Municipal Council adopted Resolution 7R2-c (the “Original Resolution”), which authorized the Mayor 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 (“Agreement”), for the sale of the following City-owned property (the “Listed Properties”) to Genesis Capital Investments, LLC, 404 Saratoga Court, Branchburg, New Jersey 08876 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the West Ward, no longer needed for public use, in accordance with 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, n the amount of Sixty-One Thousand Eight Hundred Dollars and Zero Cents ($61,800.00), with the cost basis of $6.00 per square foot (“Cost Basis”), to construct four (4) luxury homes in the Fairmount and University Heights Neighborhood (“Project”):
ADDRESS BLOCK LOT SIZE SQ. FEET
|
142 South 13th Street 1859 41 28X100 2,800 126 South 13th Street 1859 49 25X100 2,500 105 South 13th Street 1860 9 25X100 2,500 70 11th Avenue 1811 1 25X100 2,500 |
1860 9 25X100 2,500 1859 49 25X100 2,500 1859 41 28X100 2,800 1811 1 25X100 2,500 |
105 South 13th Street 1860 9 25X100 2,500 126 South 13th Street 1859 49 25X100 2,500 142 South 13th Street 1859 41 28X100 2,800 70 11th Avenue 1811 1 25X100 2,500 |
105 South 13th Street 1860 9 25X100 2,500 126 South 13th Street 1859 49 25X100 2,500 142 South 13th Street 1859 41 28X100 2,800 70 11th Avenue 1811 1 25X100 2,500 |
Total Square Footage: 10,300 sq. ft.
Total Purchase Price: $ 61,800.00 ($6.00 per sq. ft.); and
WHEREAS, while the Redeveloper has actively worked towards the completion of the purchase of Properties and redevelopment, it was not successful due to funding restrictions and a pending re-foreclosure on of the Properties (70 11th Avenue); and
WHEREAS, as a result of the Redeveloper’s funding restrictions, Redeveloper has requested to proceed in the name of an affiliated entity, Genesis Capital 2, LLC, 100 Charles Ewing Boulevard, Suite 16, Ewing, New Jersey 08628 (“Amended Redeveloper”), in order to obtain the funding for acquisition and the Project; and
WHEREAS, as a result of the pending re-foreclosure of 70 11th Avenue, Block 1811, Lot 1 (“Reforeclosure Property”), the Redeveloper has requested to replace the Reforeclosure Property with 40 Gladstone Avenue, Block 4003, Lot 32, with a square footage of 2,499 (“Replacement Property”); and
WHEREAS, as a result of the removal of the Reforeclosure Property and the inclusion of the Replacement Property into the Listed Properties, the new Total Square Footage is 10,299, which decreases the Total Purchase Price to Sixty One Thousand Seven Hundred Ninety Four Dollars and Zero Cents ($61,794.00); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Redeveloper and the request to replace one of the Listed Properties, and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with the Amended Redeveloper (“Amended Agreement”); and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution and enter into the Amended Agreement in order to memorialize the terms and conditions of the sale and redevelopment of the Listed Properties, to include the Amended Redeveloper and update the Listed Properties to remove the Reforeclosure Property and include the Replacement Property, in a form substantially consistent to the Amended Agreement, attached hereto as Exhibit A.
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 First Amendment to the Agreement for the Sale and Redevelopment of Land (“Amended Agreement”), in the form attached hereto as Exhibit A, with Genesis Capital 2, LLC, 100 Charles Ewing Boulevard, Suite 16, Ewing, New Jersey 08628 (the “Amended 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 Amended Agreement, and the West Redevelopment Plan, as amended, to amend the Redeveloper Name and Property Addresses and Sale Price:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
|
142 South 13th Street West 1859 41 28X100 2,800 126 South 13th Street West 1859 49 25X100 2,500 105 South 13th Street West 1860 9 25X100 2,500 40 Gladstone Avenue West 4003 32 30x83.3 2,499 |
|
142 South 13th Street 1859 41 28X100 2,800 126 South 13th Street 1859 49 25X100 2,500 105 South 13th Street 1860 9 28X100 2,500 70 11th Avenue 1811 1 25X100 2,500 |
142 South 13th Street 1859 41 28X100 2,800 126 South 13th Street 1859 49 25X100 2,500 105 South 13th Street 1860 9 28X100 2,500 70 11th Avenue 1811 1 25X100 2,500 |
Total Square Footage: 10,299.00 sq. ft.
Total Purchase Price: $61,794.00 ($6.00.00 per sq. ft.).
2. All other terms and conditions of Agreement for the Sale and Redevelopment of Land (“Original Agreement”), authorized pursuant to Resolution 7R2-c adopted by the Newark Municipal Council on December 20, 2023 (“Original Resolution”) shall remain in full force and effect.
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 Amended Agreement and may enter into any related documents, which may be necessary in order to effectuate the Amended Agreement.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute Quitclaim Deeds for the sale of the Properties to the Amended Redeveloper. Said Quitclaim Deeds conveying title to the Properties to the Amended Redeveloper shall be approved as to Form and legality by the City’s Corporation Counsel and attested to and acknowledged by the City Clerk.
5. The executed Amended Agreement and the Quitclaim Deeds shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
6. The Deputy Mayor/Director of the Department of Economic and Housing Development is authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Amended 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.
7. 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 Amended Agreement and return same to the Department of Economic Housing Development. Should the Redeveloper fail to execute and return the attached Amended 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 period.
STATEMENT
This Resolution authorizes the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a First Amendment to the Agreement for the Sale and Redevelopment of Land with Genesis Capital 2, LLC, 100 Charles Ewing Boulevard, Suite 16, Ewing, New Jersey 08628 to amend the Entity Name and replace a property.