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 DCF Developers, LLC to change the property description to the new construction of four (4) three-family homes to provide twelve (12) three-bedroom units of which two (2) units shall be restricted to tenants at 80% Area Median Income (“AMI”), one (1) units shall be restricted to tenants at 60% AMI and the other nine (9) units will be market rate.
Entity Name: DCF Developers, LLC
Entity Address: 162 South 8th Street, Apartment 3, Brooklyn, New York 11211
Sale Amount: $131,040.00
Cost Basis: (X) $13.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $158,600.00
Appraised Amount: N/A
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)
233 South 10th Street/Block 1814/Lot 29/West Ward
235 South 10th Street/Block 1814/Lot 30/West Ward
476 Avon Avenue/Block 2643/Lot 7/South Ward
474 Avon Avenue/Block 2643/Lot 8/South Ward
Additional Information:
Resolution 7R2-d adopted on November 7, 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 Scope of Project due to a removal of one of the properties from the Preliminary Designation Letter.
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WHEREAS, on November 7, 2024 the Newark Municipal Council adopted Resolution 7R2-d (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 DCF Developers, LLC, 162 South 8th Street, Apartment 3, Brooklyn, New York 11211 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the West Ward and South Ward, no longer needed for public use, in accordance with Ordinance 6S&Fc(s) adopted on August 17, 2025, adopting the Second Amendment to the West Ward Redevelopment Plan, and Ordinance 6S&Fd(s), adopting the Third Amendment to the South Ward Redevelopment Plan, governing the redevelopment of City owned property located within the West Ward and South Ward, in the amount of One Hundred Thirty-One Thousand Forty Dollars and Zero Cents ($131,040.00), for the new construction of eight (8) three-family homes to provide five (5) affordable residential units and nineteen (19) market rate rentals (“Scope of Project”):
ADDRESS WARD BLOCK LOT
233 South 10th Street West 1814 29
235 South 10th Street West 1814 30
476 Avon Avenue South 2643 7
474 Avon Avenue South 2643 8
WHEREAS, the Preliminary Designation Letter included the property located at 4-16 South 13th Street, Block 1897, Lot 1 (“Omitted Property”); and
WHEREAS, the Department of Economic and Housing Development decided to remove the omitted Property from the Preliminary Designation Letter during the Legislative review process and notified that change in writing to the Redeveloper on September 20, 2024, attached hereto as Exhibit C; and
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, it was discovered that the original Scope of Project was not feasible due to the removal of the Omitted Property; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic and Housing Development has reviewed and approved the request to amend the Scope of Project from the new construction of eight (8) three-family homes to provide five (5) affordable residential units and nineteen (19) market rate rentals to the new construction of four (4) three-family homes to provide twelve (12) three-bedroom units of which two (2) units shall be restricted to tenants at 80% Area Median Income (“AMI”), one (1) units shall be restricted to tenants at 60% AMI and the other nine (9) units will be market rate, as outlined in the Amendment Request Letter, attached hereto as Exhibit B (“Amended Scope of Project”), 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 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. The Mayor and/or his designee, and 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 here to as Exhibit A, with DCF Developers, LLC, 162 South 8th Street, Apartment 3, Brooklyn, New York 11211 (the “Redeveloper), for the private sale and rehabilitation of the following Properties, in the amount of One Hundred Thirty-One Thousand Forty Dollars and Zero Cents ($131,040.00), 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 Ward and South Ward Redevelopment Plans, as amended, to amend the Scope of Project from the new construction of eight (8) three-family homes to provide five (5) affordable residential units and nineteen (19) market rate rentals to the new construction of four (4) three-family homes to provide twelve (12) three-bedroom units of which two (2) units shall be restricted to tenants at 80% Area Median Income (“AMI”), one (1) units shall be restricted to tenants at 60% AMI and the other nine (9) units will be market rate (“Amended Scope of Project”):
ADDRESS WARD BLOCK LOT
2. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land (“Original Agreement”), authorized pursuant to Resolution 7R2-d adopted by the Newark Municipal Council on November 7, 2024 (“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 Redeveloper. Said Quitclaim Deeds, conveying title to the properties 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.
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.
STATEMENT
This Resolution authorizes the Mayor and/or his designee, and 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 DCF Developers, LLC, 162 South 8th Street, Apartment 3, Brooklyn, New York 11211, to change the Scope of Project.