Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Sale of City property for redevelopment purposes
Entity Name: The Friends of TEAM Academy Charter School and
Ashland School Inc.
Entity Address: 60 Park Place, Suite 802, Newark, NJ 07102
Sale Amount: $261,576.88
Cost Basis: ( ) $ PSF ( ) Negotiated ( X ) N/A ( ) Other:
Assessed Amount: $
Appraised Amount: $
Contract Period: Start and end dates
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)
424-430 S. Orange Ave./317/1, 2, 3, 4/West Ward
418-422 S. Orange Ave./317/5, 6, 7/West Ward
406-408 S. Orange Ave./317/13/West Ward
9 Ashland St./317/15/West Ward
410-414 S. 14th St./317/56/West Ward
416-422 S. 14th St./317/58/West Ward
18 Newark St./2853/19/Central Ward
16 Newark St./2853/21/Central Ward
14 Newark St./2853/23/Central ward
268 Orange St./2853/28/Central Ward
266 Orange St./2853/29/Central Ward
262-264 Orange St./2853/30/Central Ward
Additional Information:
body
WHEREAS, the City, in connection with its efforts to redevelop the entire City, by Resolution 7RM, adopted on May 4, 2005, directed the Central Planning Board of the City (the Central Planning Board) to undertake an investigation to determine whether the City satisfied the statutory criteria as an area in need of rehabilitation in accordance with the provisions of N.J.S.A. 40A:12A-14 of the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the LRHL or Act); and
WHEREAS, the Central Planning Board conducted the requested investigation in accordance with the Act, including holding a public hearing on June 6, 2005, after which hearing the Central Planning Board recommended to the Municipal Council the designation of the entire City as an area in need of rehabilitation; and
WHEREAS, on June 15, 2005, acting on the recommendation of the Central Planning Board, the City by Resolution 7RD0 (A.S.) 061505 designating the entire City as an area in need of rehabilitation (as defined by the Act) and such designation became effective on June 17, 2005 upon the transmission of such Resolution to the New Jersey Department of Community Affairs by the City Clerk; and
WHEREAS, subsequent to the effective date of Resolution 7RDO (A.S.) 061505, the City undertook a program for the clearance, redevelopment and rehabilitation of slum and blighted areas in the City in furtherance of the objectives of the LRHL, including, among other things, adopting Ordinance 6F&FC on August 17, 2005 approving a Second Amendment to the previously adopted West Ward Redevelopment Plan and Feasibility of Relocation (as amended, the West Ward Redevelopment Plan) for various City-owned parcels located throughout the entire West Ward, and the adopting Ordinance 6S&FE(S) on August 17, 2005 approving the First Amendment to the Central Ward Redevelopment Plan (as amended, the Central Ward Redevelopment Plan) (collectively with the West Ward Redevelopment Plan, the Redevelopment Plan); and
WHEREAS, the City is the owner of those parcels of real property identified on the tax maps of the City of Newark as Block 317, Lots 1, 2, 3, 4, 5, 6, 7, 13, 15, 56, and 58, and Block 2853, Lots 19, 21, 23, 28, 29 and 30 (collectively referred to as the Property), which Property is located within the boundaries of the area governed by the West Ward Redevelopment Plan and the Central Ward Redevelopment Plan; and
WHEREAS, the City has determined that (i) the Property is no longer needed for public use and (ii) the redevelopment thereof in accordance with the applicable provisions of the Redevelopment Plan will contribute to the rehabilitation and reinvigoration of the City and to the social and economic improvement of the City in accordance with the legislative intent, goals and objectives of the LRHL; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(f), the City is authorized to arrange or contract with redevelopers for the planning, replanning, construction or undertaking of any redevelopment project; and
WHEREAS, based on its review of the submissions and presentations made by representatives of the Redeveloper, the City determined that the Redeveloper has the professional experience and financial capabilities to carry out the rehabilitation of the Property in accordance with the approved Redevelopment Plan; and
WHEREAS, the Redeveloper has agreed to construct on the Property a recreational area, including athletic fields and other open or green space, ancillary to and for the use of The Friends of TEAM Academy Charter school (the Project); and
WHEREAS, the City believes the Project to be in the vital and best interests of the City and of the Central and West Wards, 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 designation of The Friends of TEAM Academy Charter School, a New Jersey Non-Profit Organization, and Ashland School Inc., (collectively, the Redeveloper) as redeveloper of the properties is hereby authorized and approved.
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into a Redevelopment Agreement with The Friends of TEAM Academy Charter School and Ashland School Inc. in the form attached hereto. 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 Redevelopment Agreement annexed hereto and may enter into subordination agreements, access and right of entry agreements, and other relevant documents, subject to the approval as to form and legality by the City's Corporation Counsel. In addition, the Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two six month extensions of the term of the contract and any contract timelines and milestones, provided that any contract timelines and milestones are not extended beyond the two permitted six month extensions, subject to full written disclosure (in the form of a signed memorandum to be submitted prior to adoption) to the Newark Municipal Council by the Deputy Mayor/Director of the Department of economic and Housing Development and the approval as to form and legality by the City's Corporation Counsel. The contract shall be for the redevelopment of the following properties (collectively, the Property):
- 424-430 S. Orange Ave. Block 317 Lots 1, 2, 3, 4
- 418-422 S. Orange Ave. Block 317 Lots 5, 6, 7
- 406-408 S. Orange Ave. Block 317 Lot 13
- 9 Ashland St. Block 317 Lot 15
- 410-414 S. 14th St. Block 317 Lot 56
- 416-422 S. 14th St. Block 317 Lot 58
- 18 Newark St. Block 2853 Lot 19
- 16 Newark St. Block 2853 Lot 21
- 14 Newark St. Block 2853 Lot 23
- 268 Orange St. Block 2853 Lot 28
- 266 Orange St. Block 2853 Lot 29
- 262-264 Orange St. Block 2853 Lot 30
3. The Property shall be sold to Friends of TEAM Academy Charter School and Ashland School Inc. for the consideration of Two Hundred Sixty-One Thousand Five Hundred Seventy-Six and 88/100 Dollars ($261,576.88), to undertake the construction of a recreational area, including athletic fields and other open or green space, ancillary to and for the use of The TEAM Academy Charter school (the Project), in accordance with the Redevelopment Agreement annexed hereto.
4. Any prior legislation authorizing or intended to authorize the sale of the Property listed in Paragraph 2 hereof are hereby rescinded.
5. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Bargain and Sale Deed to the Redeveloper for the Property as provided in the Redevelopment Agreement annexed hereto including a limited right of reverter. Said Bargain and Sale Deed conveying title 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.
6. The Director of Finance is hereby authorized to receive proceeds of sale and to deposit same as follows: ninety (90) percent of the sales proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under City Resolution No. 7RG 110685; and ten (10) percent of the sale proceeds shall be placed in the City's Affordable Housing Trust Fund established under City Ordinance 6PhS&FF 062106 for the purpose of preserving or creating low or moderate income affordable housing.
7. A copy of the executed contract and 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.
8. The redevelopment of the Property must be commenced no later than sixty (60) days following the issuance of all construction and/or building permits and shall be completed within twelve (12) months of Closing. Should Redeveloper fail to redevelop the Property, then the City, in its sole discretion, may direct this Redeveloper to transfer title of these properties back to the City as provided in the contract.
STATEMENT
This resolution designates of The Friends of TEAM Academy Charter School and Ashland School Inc. (collectively, the Redeveloper) as redeveloper of the following Property:
- 424-430 S. Orange Ave. Block 317 Lots 1, 2, 3, 4
- 418-422 S. Orange Ave. Block 317 Lots 5, 6, 7
- 406-408 S. Orange Ave. Block 317 Lot 13
- 9 Ashland St. Block 317 Lot 15
- 410-414 S. 14th St. Block 317 Lot 56
- 416-422 S. 14th St. Block 317 Lot 58
- 18 Newark St. Block 2853 Lot 19
- 16 Newark St. Block 2853 Lot 21
- 14 Newark St. Block 2853 Lot 23
- 268 Orange St. Block 2853 Lot 28
- 266 Orange St. Block 2853 Lot 29
- 262-264 Orange St. Block 2853 Lot 30
Further, this resolution designates the Redeveloper as the exclusive redeveloper of the foregoing properties (the Property) under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et. seq. (the LRHL). This resolution further authorizes the Mayor of the City of Newark and the Deputy Mayor/Director of Economic and Housing Development to execute a redevelopment agreement on behalf of the City with the Redeveloper for the rehabilitation of the Property under the LRHL for the purchase price of Two Hundred Sixty-One Thousand Five Hundred Seventy-Six and 88/100 Dollars ($261,576.88) in furtherance of the rehabilitation of the Property as provided under this redevelopment agreement.