Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Execute C-PACE Assessment Agreement, Assignment Agreement, and Notice of Assessment
Purpose: To authorize the execution of C-PACE financing documents, including a C-PACE Assessment Agreement, Assignment Agreement, and Notice of Assessment, in connection with a commercial development project located at Unit #1 of the Newark Studios Condominium, 741-811 Frelinghuysen Avenue
Entity Name: Great Point Newark Studio, LLC
Entity Address: 741-811 Frelinghuysen Avenue, Newark, New Jersey 07114
Funding Amount: Not to exceed $103,775,000.00 (C-PACE Assessment)
Funding Source: Private financing secured through C-PACE Assessment
Contract Period: Date of adoption through full repayment or discharge of C-PACE Assessment
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)
Unit #1 of the Newark Studios Condominium
741-811 Frelinghuysen Avenue/Block 3746/Lot 1.01/South Ward
Additional Information:
The City’s role is limited to levying, billing, collecting, remitting, and enforcing the C-PACE Assessment in a ministerial capacity.
body
WHEREAS, the City of Newark (the “City”) has elected to participate in the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program administered by the New Jersey Economic Development Authority pursuant to P.L. 2021, c. 201 (N.J.S.A. 34:1B-374 et seq.) (the “Act”); and
WHEREAS, the C-PACE Program authorizes municipalities to impose a voluntary local improvement assessment on eligible commercial property to secure financing for energy efficiency, renewable energy, and resiliency improvements (the “C-PACE Project”); and
WHEREAS, Great Point Newark Studios, LLC (the “Property Owner”) has applied for and been approved to participate in the C-PACE Program for property located at Unit #1 of the Newark Studio Condominium, 741-811 Frelinghuysen Avenue, Newark, New Jersey (the “Property”); and
WHEREAS, the City and the Property Owner propose to enter into a C-PACE Assessment Agreement pursuant to which the Property Owner voluntarily agrees to the imposition of a C-PACE Assessment on the Property to secure financing for the C-PACE Project; and
WHEREAS, the C-PACE Assessment is in an amount not to exceed One Hundred Three Million Seven Hundred Seventy-Five Thousand Dollars and Zero Cents ($103,775,000.00) and will be repaid in installments in the same manner as municipal property taxes; and
WHEREAS, pursuant to the Act, the C-PACE Assessment constitutes a single, continuous first municipal lien on the Property, paramount to most other liens and enforceable in the same manner as delinquent property taxes; and
WHEREAS, the City will assign its right, title, and interest in the C-PACE Assessment to Greenworks Lending LLC, as Qualified Capital Provider, pursuant to the Assignment Agreement, while retaining its obligations to levy, bill, collect, remit, and enforce the assessment; and
WHEREAS, the C-PACE financing requires the execution and recording of the following documents: (i) Notice of Assessment; (ii) C-PACE Assessment Agreement; and (iii) Assignment Agreement (collectively, the “C-PACE Assessment Documents”); and
WHEREAS, the Property is subject to a ground lease structure involving the Newark Housing Authority, and implementation of the C-PACE structure requires the consent and approval of the Newark Housing Authority; and
WHEREAS, the City desires to authorize execution of the C-PACE Assessment Documents, subject to receipt of such approval to ensure the protection of all underlying property interests; and
WHEREAS, the City’s role in connection with the C-PACE Assessment is administrative and ministerial in nature, and the City shall not be responsible for repayment of the assessment or the performance of the C-PACE Project;
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, are hereby authorized to enter into and execute the following documents in connection with the C-PACE financing for the Property: (i) C-PACE Assessment Agreement with Great Point Newark Studio, LLC; (ii) Assignment Agreement with Greenworks Lending, LLC; and (iii) Notice of Assessment, together with any related schedules, certificates, or ancillary documents required under the C-PACE Program.
2. Notwithstanding the foregoing, the authorization granted herein is conditioned upon the prior review and approval of the Newark Housing Authority of the proposed C-PACE financing structure and related documents, to the extent required by the ground lease or any related agreements affecting the Property.
3. The City and/or other authorized officials are hereby directed to record, or cause to be recorded, the C-PACE Assessment Documents in the Essex County Recording Office in the order required by the C-PACE Program.
4. The City’s obligations under the C-PACE Assessment Documents shall be limited to levying, billing, collecting, remitting, and enforcing the C-PACE Assessment in accordance with the Act and Program Guidelines, and such obligations shall be ministerial and administrative in nature.
5. The City shall not be obligated to pay, guarantee, or otherwise assume liability for the C-PACE Assessment, and no City funds shall be pledged for repayment. The C-PACE Assessment shall be payable solely by the Property Owner and secured only by the Property.
6. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, are hereby authorized to take such further actions and execute such additional documents as may be necessary to effectuate the purposes of this Resolution.
STATEMENT
This Resolution hereby authorizes the Mayor and/or his designee, or the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the C-PACE Assessment Documents in connection with a C-PACE financing in an amount not to exceed $103,775,000.00 for property located at 741-811 Frelinghuysen Avenue (Block 3746, Lot 1.01) (South Ward), Newark, New Jersey, subject to the approval of the Newark Housing Authority of the proposed financing structure.