Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying () Authorizing (X) Amending
Type of Service: Redevelopment Agreement
Purpose: First Amendment to Redevelopment Agreement to reset project timelines.
Entity Name: New Jersey Institute of Technology
Entity Address: University Heights, Newark, New Jersey 07102-1982
Contract Amount: $0.00
Development Agreement Term:
Phase I: No later than fifty-four (54) months from the effective date
Phase II: No later than fifty-four (54) months from completion of Phase I
City Contribution to Development Project: ( ) Grant or Loan ( ) Guarantee
(X) None ( ) Other:( )
Developer Investment: :( )
Developer Third-Party Financing
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)
Block 43, Lots 1, 4, 10, 18, 19, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 33, 34, 35, 36, 37, 38, 39, 40, 41, 46, 48, 50, 51, 52, 60, 61; Block 2857, Lots 1, 2, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; Block 2858, Lots 1, 2, 10, 12, 14, 15, 16, 18, 20, 23, 43, 45, 50; Block 372, Lots 1, 5, 6, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 22, 24; Block 384, Lot 1; Block 2828, Lots 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 34, 35, 37, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61; Block 2830, Lot 1; Block 2831, Lots 3, 5, 6, 13, 18; Block 389, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 32, 33, 34, 35, 36, 46, 47, 48, 49, 51, 53; Block 40, Lots 1, 2, 3.01, 3.02, 4.01, 4.02, 5, 6, 7.01, 7.02, 8.01, 8.02, 9, 10.01, 10.02,11, 12, 16, 17, 18, 19, 20, 21, 22, 23, 25, 32, 35, 36, 37, 38, 42, 47, 48, 52.01, 52.02, 53; Block 41, Lots 1, 3, 32, 33, 34, 35, 36, 62, 65, 66, 69, 70, 72 and Block 42, Lot 44 in the City of Newark (“NJIT Gateway Plan Area”) as identified in a plan entitled the “NJIT Campus Gateway Redevelopment Concept Plan” (the “NJIT Plan”).
Additional Information:
Original Redevelopment Agreement authorized by Resolution 7R3-b(S) adopted on August 11, 2009.
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WHEREAS, on June 15, 2005, the Municipal Council adopted Resolution 7Rdo(AS), 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, in or about September, 2007, New Jersey Institute of Technology (“NJIT”)(the “Redeveloper”), in cooperation with other area stakeholders, created a comprehensive plan for the redevelopment and rehabilitation of approximately 21.5 acres located within the City of Newark (the “City”) in order to serve as a gateway between the NJIT campus and existing neighborhoods and in order to enhance the quality of life of both NJIT and existing residential communities (the “NJIT Gateway Plan”); and
WHEREAS, on January 21, 2009, the Municipal Council adopted Ordinance 6PSF-a, implementing the Broad Street Station District Redevelopment Plan for certain portions of the City (the “Redevelopment Plan”), including the area described within the NJIT Gateway Plan (the “NJIT Gateway Area”); and
WHEREAS, thereafter on August 11, 2009, the Municipal Council adopted Resolution 7R3-b(S) authorizing: (i) the execution of a redevelopment agreement between the City of Newark and the Redeveloper (the “Redevelopment Agreement”) to implement the development, financing, construction, operation and management of the NJIT Gateway Plan (the “Project”), and (ii) designating NJIT as the redeveloper for the NJIT Gateway Area, which area is within the area governed by the Redevelopment Plan; and
WHEREAS, the Redeveloper desires to continue pursuing the completion of the NJIT Gateway Plan in accordance with the Redevelopment Agreement; and
WHEREAS, Article 3 of the Redevelopment Agreement sets forth the terms for the implementation of the NJIT Gateway Plan; and
WHEREAS, although the Redeveloper has diligently and continuously pursued the implementation of the NJIT Gateway Plan, economic conditions, particularly in the aftermath of the Great Recession of 2008-2009, have delayed the complete implementation of the NJIT Gateway Plan; and
WHEREAS, the Redeveloper has requested, and the City has agreed, to reset and extend the timelines in Article 3 of the Redevelopment Agreement to facilitate the implementation of the NJIT Gateway Plan in accordance with the Redevelopment Agreement, and the parties have determined to enter into this First Amendment to Redevelopment Agreement (the “First Amendment”) to confirm same; and
WHEREAS, the City believes the continuation of the Project as set forth in the NJIT Gateway Plan and the Redevelopment Agreement to be in the vital and best interests of the City, and that it promotes the health, safety, morals and welfare of the City’s residents.
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, on behalf of the City of Newark, are hereby authorized to enter into and execute the First Amendment to the Redevelopment Agreement in the form attached hereto, for the rehabilitation of the NJIT Gateway Plan Area, in accordance with the terms and conditions of the attached First Amendment, the Broad Street District Redevelopment Plan, and the requirements of N.J.S.A. 40A:12A-1 et seq.
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 First Amendment annexed hereto and may execute any related documents, which may be necessary in order to effectuate the terms and conditions of the First Amendment, all in forms subject to the approval of the City’s Corporation Counsel.
3. The fully executed First Amendment to the Redevelopment Agreement shall be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Department.
4. The Project must be completed within the timeframe required under the Redevelopment Agreement as amended, pursuant to this resolution and First Amendment.
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 and execute a First Amendment to the Redevelopment Agreement with New Jersey Institute of Technology.