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 CO Enterprises, LLC, to change the Entity Name and amend the scope of the Project.
Entity Name: Sheila Y Oliver Senior Housing Community, LLC
Entity Address: 28 Valley Road Suite 1, Montclair, New Jersey 07042
Sale Amount: $185,580.00
Cost Basis: (X) $9.00PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $332,300.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within twenty-four (24) 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)
117 Aldine Street/ Block 3051/ Lot 21/South Ward
119-121 Aldine Street/ Block 3051/Lot 22 and 23/South Ward
295 Lyons Avenue/ Block 3051/ Lot 24/South Ward
297-299 Lyons Avenue/ Block 3051/ Lot 25 and 26/South Ward
301Lyons Avenue/ Block 3051/ Lot 27/South Ward
303 Lyons Avenue/Block 3051/Lot 28/South Ward
Additional Information:
Resolution 7R2-c adopted on March 20, 2024, 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 amend the scope of the Project.
body
WHEREAS, on March 20, 2024 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 properties (the “Properties”) to CO Enterprises, LLC., 28 Valley Road, Montclair, New Jersey 07042 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the South Ward, no longer needed for public use, in accordance with the Third Amendment to the South Ward Redevelopment Plan, adopted by Ordinance 6S&Fd(S) on August 17, 2005, as amended, which governs the redevelopment of City-owned property located in the South Ward, in the amount of One Hundred Eighty-Five Thousand Five Hundred Eighty Dollars and Zero Cents ($185,580.00), to redevelop the Properties as new construction of senior housing with (67) affordable units at 60% Area Median Income (“AMI”)(“Scope of Project”):
ADDRESS WARD BLOCK LOT
117 Aldine Street South 3051 21
119-121 Aldine Street South 3051 22,23
295 Lyons Avenue South 3051 24
297-299 Lyons Avenue South 3051 25,26
301 Lyons Avenue South 3051 27
303 Lyons Avenue South 3051 28
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Properties, pursuant to the Agreement and commencing the redevelopment of the Properties, Redeveloper desires to proceed with the purchase of the Properties in the name of an affiliated entity, Sheila Y Oliver Senior Housing Community, LLC, 28 Valley Road Suite 1, Montclair, New Jersey 07042 (“Amended Redeveloper”); and
WHEREAS, since Redeveloper has not been successful in completing the purchase of the Properties and proceeding with the Project due to limitations of the zoning districts, directly related to the size of the Properties, and the New Jersey Housing and Mortgage Finance Agency requirements pertaining to the funding it is seeking to complete the Project, Redeveloper is requesting an amendment to the Scope of Project from 67 affordable units at 60% AMI to 48 newly constructed 100% affordable senior housing, including 42 units at 60% AMI, 5 units at 20% AMI for special needs population, and 1 unit dedicated as the superintendent apartment (“Amended Project Scope”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Project Scope and the Amended Redeveloper; and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale of Land and Redevelopment with the Amended Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Project Scope, as that term is defined herein, is in the vital and best interests of the City of Newark (“City”) and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to approve the sale of the Property and to change the purpose of the sale to reflect the Amended Project Scope and Amended Redeveloper and enter into the First Amendment to the Agreement for the Sale of Land and Redevelopment (“Amended Agreement”) in order to memorialize the terms and conditions of the sale and redevelopment of the Properties, 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. Resolution 7R2-c, adopted on March 20, 2024 (“Original Resolution”) by the Newark Municipal Council and the Agreement for the Sale and Redevelopment of Land (“Original Agreement”) are hereby amended to change the following:
• The purpose of the sale from new construction of senior housing with 67 affordable units at 60% Area Median Income (“AMI”) to new construction of senior housing with 48 100% affordable senior housing units, including 42 units at 60% AMI, 5 units at 20% AMI for special needs population, and 1 unit dedicated as the superintendent apartment (“Amended Project Scope”); and
• The name of the Redeveloper from CO Enterprises, LLC to Sheila Y Oliver Senior Housing Community, LLC, 28 Valley Road Suite 1, Montclair, New Jersey 07042 (“Amended Redeveloper”).
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, is hereby authorized to enter into and execute the First Amendment to the Agreement for the Sale of Land and Redevelopment (“Amended Agreement”), in the form attached hereto as Exhibit A, with Sheila Y Oliver Senior Housing Community, LLC, 28 Valley Road Suite 1, Montclair, New Jersey 07042 (the “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 South Ward Redevelopment Plan, as amended and to amend the Project Scope and Redeveloper Name, (“Amended Agreement”):
ADDRESS WARD BLOCK LOT
117 Aldine Street South 3051 21
119-121 Aldine Street South 3051 22,23
295 Lyons Avenue South 3051 24
297-299 Lyons Avenue South 3051 25,26
301 Lyons Avenue South 3051 27 303 Lyons Avenue South 3051 28
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
4. 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.
5. The executed Amended Agreement and the Quitclaim Deed 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.
8. 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 Property. Said Quitclaim Deed conveying title to the Property 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 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 of Land Redevelopment with Sheila Y Oliver Senior Housing Community, LLC, 28 Valley Road Suite 1, Montclair, New Jersey 07042 (“First Amendment”), to amend the Project Scope and Redeveloper Name.