Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Redevelopment Agreement
Purpose: To authorizing the execution of a Settlement Agreement with 50-58 Jersey Street, LLC.
Entity Name: 50-58 Jersey Street, LLC
Entity Address: 28 Clinton Street, Newark, New Jersey 07102
Contract Amount: Not Applicable
Development Agreement Term: Not Applicable
City Contribution to Development Project: ( ) Grant or Loan ( ) Guarantee
(X) None ( ) Other
Developer Investment: Not Applicable
Developer Third-Party Financing: Not Applicable
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)
937-941 Raymond Boulevard/Block 170/Lot 1/East Ward
50-58 Jersey Street/Block 170/Lots 20/East Ward
Additional Information:
body
WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the "Act"), authorizes municipalities to participate in the redevelopment and improvement of areas that are in need of redevelopment or rehabilitation; and
WHEREAS, in order to stimulate the reinvigoration of the City of Newark (the “City”), by Resolution 7Rdo(AS) 061505 adopted on June 15, 2005, the entire City was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, 50-58 Jersey Street, LLC (“50-58 Jersey”) is the owner of property located at 50-58 Jersey Street and 937-941 Raymond Boulevard, Newark, New Jersey, and identified on the Tax Maps of the City of Newark as Block 170, Lot 1 and Block 170, Lot 20 (collectively, the “Property”) and
WHEREAS, the Municipal Council of the City of Newark (the "Municipal Council") adopted Ordinance 6PSF-i adopted on August 7, 2013, approving and adopting the Newark’s River: Public Access and Redevelopment Plan (the "Redevelopment Plan"); and
WHEREAS, the Redevelopment Plan, which superseded any prior redevelopment plans and the provisions of the City’s Zoning Ordinance, rezoned the Property into a Mix-Use 2 (Medium-Density Residential, Office, Retail) Zone (the “MX-2 Zone”) of the Ironbound Riverfront District, which permits the development of multi-family residential buildings; and
WHEREAS, on October 11, 2017, the Municipal Council adopted Ordinance 6PSF-a (s) approving and adopting the First Amendment to the Redevelopment Plan, which, in relevant part, “reclassified” the Property from the MX-2 Zone to the Open Space District, which only permits park and park-related uses (the “Reclassification”); and
WHEREAS, 50-58 Jersey filed a Verified Complaint in the Superior Court of New Jersey, Essex County, Law Division, relating to the rezoning of the Property due to the City’s adoption of the First Amendment, alleging an unconstitutional taking and inverse condemnation, which Civil Action has been docketed as Docket No.: ESX-L-6345-23 (the “Litigation”); and
WHEREAS, the City and 50-58 Jersey engaged in negotiations relative to the rezoning of the Property due to the First Amendment, and the City has determined that in furtherance of its goals and objectives, it is in the City’s best interest to enter into this Settlement Agreement with 50-58 Jersey; and
WHEREAS, the City and 50-58 Jersey have amicably agreed to settle and adjust the matters in difference between them on the terms and conditions set forth in the Settlement 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 the Deputy Mayor/Director of the Department of Economic and Housing Development of the City, or either of them, are hereby authorized to enter into and execute the Settlement Agreement in substantially the form attached hereto as Exhibit A.
2. 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 Settlement Agreement and may enter into any related documents which may be necessary in order to effectuate the Settlement Agreement.
3. The executed Settlement Agreement shall be placed on file in the Office of the City Clerk by the Acting Deputy Mayor/Director of Department of Economic and Housing Development.
4. This resolution shall take effect immediately.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, on behalf of the City of Newark, to enter into a Settlement Agreement with 50-58 Jersey Street, LLC.