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AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY OF NEWARK (TENANT) AND BROAD ST FIDELCO LLC (LANDLORD) FOR THE LEASING OF APPROXIMAETLEY 2,970 SQUARE FEET OF PROPERTY LOCATED AT 468-498 BROAD STREET, NEWARK, NEW JERSEY 07102, BLOCK 25, LOT 1 (CENTRAL WARD), PURSUANT TO N.J.S.A. 40A:12-3 & 5, FOR A PERIOD OF FIVE (5) YEARS FROM THE DATE OF COMMENCEMENT, AS DEFINED IN THE LEASE AGREEMENT, TO BE USED AS A POLICE PRECINCT SUBSTATION BY THE DEPARTMENT OF PUBLIC SAFETY, OFFICE OF PROFESSIONAL STANDARDS, AT AN APPROXIMATE ANNUAL RENTAL NOT TO EXCEED $69,795.00 IN YEAR ONE (1) AND ESCALATING TO AN APPROXIMATE ANNUAL RENTAL NOT TO EXCEED $78,554.89 IN YEAR FIVE (5), WITH TWO (2) OPTIONAL RENEWAL TERMS OF FIVE (5) YEARS EACH.
Deferred 6PSF-g 120424
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WHEREAS, the City of Newark (the City”) is desirous of leasing property in the City of Newark to serve as a Police Precinct Substation for the City of Newark’s Department of Public Safety, Office of Professional Standards; and
WHEREAS, the Office of Professional Standards space must meet minimum requirements per the State’s standards; and
WHEREAS, pursuant to Newark Municipal Code 2:4-16, the City reviewed its inventory of city owned property, and the City does not have space within any city owned property that can adequately accommodate the State’s standards and the needs of the Office of Professional Standards; and
WHEREAS, the City’s Office of Professional Standards compared lease terms of three potential locations and determined that a portion of the property located at 468-498 Broad Street, Newark, New Jersey, 07102, Block 25, Lot 1 satisfies the City’s needs and State’s standards and is the most cost effective and best fit for the Office of Professional Standards; and
WHEREAS, Broad St Fidelco, LLC, a New Jersey limited liability company, 225 Millburn Avenue, Suite 202, Millburn, New Jersey 07041 (“Landlord”), is the owner of the property located at 468-498 Broad Street, Newark, New Jersey, 07102, Block 25, Lot 1 (“Building”); and
WHEREAS, the City (“Tenant”) has been offered a lease by Landlord consisting of certain premises (being approximately 2,970 square feet) designated as Suite 302 (the “Premises”) on the third floor of the Building, as set forth in greater detail in Exhibit A of the Lease Agreement; and
WHEREAS, the Tenant desires to have the Landlord perform, at its sole cost and expense, all those the necessary alterations and improvements to the Premises as described in Exhibit B of the Lease Agreement, so that the premises can serve as a Police Precinct Substation for the City of Newark’s Department of Public Safety, Office of Professional Standards; and
WHEREAS, the parties desire to enter into a Lease Agreement of the Premises commencing on the date as defined in the Lease Agreement for a period of five (5) years, with two (2) optional renewal terms of five (5) years; and
WHEREAS, the City is authorized to acquire property by lease, pursuant to the Local Lands and Buildings Law, N.J.S.A. 40A:12-3 & 5, upon passage of an ordinance; and
WHEREAS, the City wishes to enter into a Lease Agreement with the Landlord to lease the Premises pursuant to the terms and conditions as set forth in Exhibit A, attached hereto and made a part of this Ordinance; and
WHEREAS, a Certification of Funds is available to lease the Premises, for a five (5) year term commencing upon the date set forth in the attached Lease Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Section 1. The Mayor and/or his designee(s), the Business Administrator, are hereby authorized to enter into and execute a Lease Agreement, in the form attached hereto, on behalf of the City of Newark (Tenant) with, Broad St Fidelco, LLC, a New Jersey limited liability company having an address at 225 Millburn Avenue, Suite 202, Millburn, New Jersey 07041 (Landlord), pursuant to N.J.S.A. 40A:12-3 & 5, to lease 2,970 gross rentable square feet of space in the building (the “Premises”), located at 468-498 Broad Street, Newark, New Jersey, 07102, Block 25, Lot 1 (“Building”), as set forth in greater detail in the Lease Agreement, to serve as a Police Precinct Substation for the City of Newark’s Department of Public Safety, Office of Professional Standards.
Section 2. The Mayor and/or his designee(s), the Business Administrator, are hereby authorized to enter into and execute a Rent Commencement Agreement, in substantially the form attached to the Lease Agreement as Exhibits C, subject to the approval of the Corporation Counsel.
Section 3. The term of this lease shall be for the period of five (5) years from date of commencement of the lease, as defined therein, with two (2) optional renewal terms of five (5) years each, as per the terms and conditions of the Lease Agreement.
Section 4. There shall be no advance payment on this lease.
Section 5. A copy of the Lease Agreement and Landlord’s Work of the necessary alterations and improvements to the Premises are attached hereto and made a part hereof.
Section 6. This is a multi-year lease and pursuant to N.J.A.C. 5:30-5.5(d)(2) is subject to the availability and appropriation annually of sufficient funds as required to meet the extended obligation of the agreement.
Section 7. A Certification of Funds is not required at this time as the lease does not commence until Landlord completes construction, a final Certificate of Occupancy is issued to the Landlord, and the Landlord delivers possession of the leased property to the City of Newark and the parties enter into a Commencement Date Agreement. Funds for the lease shall be provided from the City of Newark prior to the commencement of the lease. A copy of the Certification of Funds, when issued, shall be filed in the Office of the City Clerk.
Section 8. This Lease Agreement is in compliance with the prerequisite for leasing private space, set forth in the City of Newark Municipal Code 2:4-16, as suitable space under the control of the City of Newark is not available.
Section 9. A copy of the Lease Agreement and this Ordinance approving the same shall be permanently filed in the Office of the City Clerk by the Business Administrator.
Section 10. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
Ordinance authorizing the Mayor and/or his designees, the Business Administrator, to enter into and execute a Lease Agreement with Broad St Fidelco, LLC, a New Jersey limited liability company having an address at 225 Millburn Avenue, Suite 202, Millburn, New Jersey 07041, pursuant to N.J.S.A. 40A:12-3 & 5, to lease 2,970 gross rentable square feet of space of the building located at 468-498 Broad Street, Newark, New Jersey, 07102, Block 25, Lot 1, to serve as a Police Precinct Substation for the City of Newark’s Department of Public Safety, Office of Professional Standards for the period of five (5) years from date of commencement of the lease, as defined therein, with two (2) optional renewal terms of five (5) years each, as per the terms and conditions of the Lease Agreement, at an approximate annual rental not to exceed $69,795.00 in year one (1) and escalating to an approximate annual rental not to exceed $78,554.89 in year five (5).