Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Construct Mixed-Use Commercial and Residential Development
Entity Name: Aim Steel International Corporation
Entity Address: 2366 Sylvan Road, Atlanta, Georgia 30344
Sale Amount: $164,107.20
Cost Basis: (X) $4.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $981,200.00
Appraised Amount: $830,000.00
Contract Period: To be commenced within three (3) months and be completed within 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)
285 Springfield Avenue/Block 2518/Lot 1/Central Ward
283 Springfield Avenue/Block 2518/Lot 2/Central Ward
281 Springfield Avenue/Block 2518/Lot 3/Central Ward
279 Springfield Avenue/Block 2518/Lot 4/Central Ward
277 Springfield Avenue/Block 2518/Lot 5/Central Ward
275 Springfield Avenue/Block 2518/Lot 6/Central Ward
269-273 Springfield Avenue/Block 2518/Lot 7/Central Ward
11-13 Boyd Street/Block 2518/Lot 11/Central Ward
5 Sayre Street/Block 2518/Lot 43/Central Ward
7-9 Boyd Street/Block 2518/Lot 61/Central Ward
14 Boyd Street/Block 2519/Lot 47/Central Ward
12 Boyd Street/Block 2519/Lot 48/Central Ward
8-10 Boyd Street/Block 2519/Lot 49, 50/Central Ward
6 Boyd Street/Block 2519/Lot 51/Central Ward
265-267 Springfield Avenue/Block 2519/Lot 52, 53/Central Ward
261-261½ Springfield Avenue/Block 2519/Lot 56/Central Ward
Additional Information:
Total Square Footage: 41,026.80 X $4.00 = $164,107.20
Sale Price as set forth by Ordinance 6S&fh, adopted April 7, 2004, establishing the minimum sale price of City-owned property.
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WHEREAS, the purpose of this resolution is to approve the sale and redevelopment of the following City-owned properties located in the Central Ward of the City of Newark:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue Central 2518 1 25X63 1,575.
283 Springfield Avenue Central 2518 2 25X100 2,500.
281 Springfield Avenue Central 2518 3 25X100 2,500.
279 Springfield Avenue Central 2518 4 25X100 2,500.
277 Springfield Avenue Central 2518 5 25X100 2,500.
275 Springfield Avenue Central 2518 6 25X100 2,500.
269-273 Springfield Avenue Central 2518 7 86.10X55 4,735.5
11-13 Boyd Street Central 2518 11 39.4X17.5 689.5
5 Sayre Street Central 2518 43 26.5X68 1,802.
7-9 Boyd Street Central 2518 61 36X39 1,404.
14 Boyd Street Central 2519 47 25X100 2,500.
12 Boyd Street Central 2519 48 25X100 2,500.
8-10 Boyd Street Central 2519 49,50 50X100 5,000.
6 Boyd Street Central 2519 51 25X100 2,500.
265-267 Springfield Avenue Central 2519 52,53 41.2X45 1,854.
261-261½ Springfield Avenue Central 2519 56 47X84.4 3,966.8
Total Square Footage: 41,026.80
Total Purchase Price: $164,107.20 ($4.00 per sf); and
WHEREAS, the City of Newark has determined that the above referenced City-owned properties (the “Properties”) are no longer needed for public use; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City of Newark is proceeding with the redevelopment of the area and is conveying properties at such prices and upon such terms as it deems reasonable and said conveyance is made in conjunction with the applicable Redevelopment Plan, as amended; and
WHEREAS, the Municipal Council previously adopted Resolution 7Rdo (AS) on June 15, 2005, 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, the Municipal Council thereafter adopted Ordinance 6S&Fe(S) on August 17, 2005 , adopting the First Amendment to the Central Ward Redevelopment Plan, governing the redevelopment of all city-owned properties located within the Central Ward, which includes the above-referenced Properties; and
WHEREAS, the City received a proposal for the purchase and redevelopment of the Properties from Aim Steel International Corporation (the “Redeveloper”); and
WHEREAS, the Redeveloper, 2366 Sylvan Road, Atlanta, Georgia 30344, has proposed to the City’s Department of Economic and Housing Development to construct a four story mixed use building, containing 61 market rate residential apartment units, 16 affordable housing units, approximately 3,600 square feet of commercial/retail on the ground floor as well as onsite parking spaces for residential and retail uses (the “Proposal”); and
WHEREAS, based upon the City’s review of the Proposal and other such information, the City has determined that the Redeveloper possesses the proper qualifications and requisite financial resources and capacity to acquire the Properties and to redevelop it in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the Agreement for the Sale of Land and Redevelopment, the form of which is attached hereto (the “Agreement”), and the Central Ward Redevelopment Plan, as amended; and
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development has recommended that the City of Newark sell the Properties to Aim Steel International Corporation, which is willing to purchase the Properties from the City, for the nominal consideration of One Hundred Sixty-Four Thousand, One Hundred Seven Dollars and Twenty Cents ($164,107.20) for the purpose of redeveloping said properties in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the Kent/Brenner/Springfield Redevelopment Plan, as amended.
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 Agreement for the Sale and Redevelopment of Land attached hereto with Aim Steel International Corporation, 2366 Sylvan Road, Atlanta, Georgia 30344, for the private sale and redevelopment of the following Properties, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Agreement and the Central Ward Redevelopment Plan, as amended:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue Central 2518 1 25X63 1,575.
283 Springfield Avenue Central 2518 2 25X100 2,500.
281 Springfield Avenue Central 2518 3 25X100 2,500.
279 Springfield Avenue Central 2518 4 25X100 2,500.
277 Springfield Avenue Central 2518 5 25X100 2,500.
275 Springfield Avenue Central 2518 6 25X100 2,500.
269-273 Springfield Avenue Central 2518 7 86.10X55 4,735.5
11-13 Boyd Street Central 2518 11 39.4X17.5 689.5
5 Sayre Street Central 2518 43 26.5X68 1,802.
7-9 Boyd Street Central 2518 61 36X39 1,404.
14 Boyd Street Central 2519 47 25X100 2,500.
12 Boyd Street Central 2519 48 25X100 2,500.
8-10 Boyd Street Central 2519 49,50 50X100 5,000.
6 Boyd Street Central 2519 51 25X100 2,500.
265-267 Springfield Avenue Central 2519 52,53 41.2X45 1,854.
261-261½ Springfield Avenue Central 2519 56 47X84.4 3,966.
Total Square Footage: 41,026.80
Total Purchase Price: $164,107.20 ($4.00 per sf)
2. Said properties shall be sold to Aim Steel International Corporation, by private sale for the purpose of redeveloping the Properties by constructing a four story mixed use building, containing 61 market rate residential apartment units, 16 affordable housing units, approximately 3,600 square feet of commercial/retail on the ground floor as well as onsite parking spaces for residential and retail uses, and all deeds shall contain resale and/or use restrictions which shall run with the land for a period of not less than ten (10) years.
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 Redevelopment Agreement annexed hereto and may enter into access and right of entry agreements and any related documents which may be necessary in order to effectuate the sale of the Properties and the terms and conditions of the Agreement, all in forms subject to the approval of the City of Newark Corporation Counsel.
4. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the 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 Corporation Counsel.
5. The Redeveloper shall be designated as the exclusive redeveloper of the Properties and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment of the Properties is hereby rescinded.
6. 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 Agreement for the Sale and Redevelopment of Land and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached 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 time period.
7. The Director of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety (90) percent of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg dated November 6, 1985; 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 dated June 21, 2006 for the purpose of preserving low and moderate income affordable housing.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale and Redevelopment of Land, the Quitclaim Deed, and all such other executed agreements authorized by this resolution on file in the Office of the City Clerk.
9. The Redeveloper shall be required to comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, dated April 5, 1995; the City of Newark’s Affirmative Action Plan 7Rbp, dated March 1, 1995; Federal Executive Order 11246, (as amended by Executive Orders 11375 and 12086) regarding the award of goods and services contracts; and the City of Newark Ordinance Amending Title II, Administration, Chapter 4, General Administration, Section 20, Hiring of Newark Residents by Contractors or Other Persons Doing Business with the City of Newark and Section 21, Newark Residents’ Employment Policy, by Adding Language to Address Immediate Short Term Training and Employment Opportunities and Repealing the Newark Employment Commission, a copy of which is attached to the Agreement (the “First Source Ordinance”), all as may be applicable. In addition, the Redeveloper has agreed to ensure that 30% of all contractors, subcontractors and suppliers shall be Newark-based companies.
10. The redevelopment of the Properties shall be commenced within three (3) months and be completed within twenty four (24) months from the transfer of ownership of the Properties by the City to the Redeveloper.
11. The project to be implemented by the Redeveloper shall conform to the City of Newark Design Guidelines, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Additionally, the Redeveloper shall conduct any environmental investigation and remediation upon the Properties as may be necessary. Should the Redeveloper fail to diligently pursue the redevelopment of the Properties, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Properties back to the City, in accordance with the terms and conditions of the Agreement and the deed.
12. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Properties. Said Quitclaim Deed 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.
STATEMENT
This Resolution authorizes the Mayor and/or his designee and 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 with Aim Steel International Corporation, for the private sale and redevelopment of the following Properties, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Agreement for the Sale and Redevelopment of Land and the Central Ward Redevelopment Plan, as amended:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue Central 2518 1 25X63 1,575.
283 Springfield Avenue Central 2518 2 25X100 2,500.
281 Springfield Avenue Central 2518 3 25X100 2,500.
279 Springfield Avenue Central 2518 4 25X100 2,500.
277 Springfield Avenue Central 2518 5 25X100 2,500.
275 Springfield Avenue Central 2518 6 25X100 2,500.
269-273 Springfield Avenue Central 2518 7 86.10X55 4,735.5
11-13 Boyd Street Central 2518 11 39.4X17.5 689.5
5 Sayre Street Central 2518 43 26.5X68 1,802.
7-9 Boyd Street Central 2518 61 36X39 1,404.
14 Boyd Street Central 2519 47 25X100 2,500.
12 Boyd Street Central 2519 48 25X100 2,500.
8-10 Boyd Street Central 2519 49,50 50X100 5,000.
6 Boyd Street Central 2519 51 25X100 2,500.
265-267 Springfield Avenue Central 2519 52,53 41.2X45 1,854.
261-261½ Springfield Avenue Central 2519 56 47X84.4 3,966.
Total Square Footage: 41,026.80
Total Purchase Price: $164,107.20 ($4.00 per sf)
For the purpose of constructing a four story mixed use building, containing 61 market rate residential apartment units, 16 affordable housing units, approximately 3,600 square feet of commercial/retail on the ground floor as well as onsite parking spaces for residential and retail uses.