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AN ORDINANCE FOR THE APPROVAL OF THE ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN EL SID PROPERTIES LLC AND GPOP DOREMUS AVE OWNER, LLC FOR THE PURPOSE OF TRANSFERRING ALL OBLIGATIONS OF THE CITY OF NEWARK AS TENANT TO GPOP DOREMUS AVE OWNER, LLC AS THE LANDLORD
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WHEREAS, pursuant to Ordinance 6PSF-c, adopted on September 9, 2020, the Newark Municipal Council authorized the execution of a twenty (20) year Lease Agreement with El Sid Properties, LLC, 500 Avenue P, Newark, New Jersey 07105, for the City of Newark (the “City”) to rent the premises located at 704-738 Doremus Avenue, Newark, New Jersey, and identified on the City’s tax map as Block 5074, Lot 1 (the “Property”) as a Firing Range to be utilized by the City’s Department of Public Safety, Police Division; and
WHEREAS, on or about February 26, 2021, the City of Newark and El Sid Properties, LLC executed the Lease Agreement setting forth the terms and conditions of the Lease (the “Lease Agreement”), a copy of which is attached hereto as Exhibit A; and
WHEREAS, on or about October 2, 2024, the Newark Municipal Council adopted Ordinance 6PSF-a which amended Ordinance 6PSF-c, adopted on September 9, 2020 for the purpose of updating and amending recitals and defined terms of the original lease agreement, setting fair market rent, settling past due base rent and reimbursement of other charges, and setting forth basic rent for years five (5) through twenty (20); and
WHEREAS, on April 1, 2026, the Newark Municipal Council adopted Resolution 7R2-l(as) which authorized, empowered, and directed the Director of the Department of Economic and Housing Development to execute an estoppel certificate so that the sale of the Property may be completed and the City may continue with the Lease Agreement and ratified its authorization to execute the Estoppel Certificate from March 25, 2026 through the date of adoption of Resolution 7R2-l(as); and
WHEREAS, on March 25, 2026, the Director of the Department of Economic and Housing Development executed an estoppel certificate, attached hereto as Exhibit B, certifying that, among other things, there are no existing credits, offsets or defenses against the enforcement of any provisions of the Lease Agreement, that all rent or other charges under the Lease Agreement have been paid through March 2026, and acknowledging the proposed sale of the leased premises and waiving any requirement of the Lease Agreement to provide thirty (30) days advance notice of the proposed sale; and
WHEREAS, on April 2, 2026, El Sid Properties, LLC, sold the Property to GPOP Doremus Ave Owner, LLC, and as part of that transaction by way of an Assignment and Assumption Agreement, attached to hereto as Exhibit C, assigned the interest of landlord under the Lease Agreement to GPOP Doremus Ave Owner, LLC, thus making GPOP Doremus Ave LLC the new landlord; and
WHEREAS, on April 2, 2026, GPOP Doremus Ave Owner, LLC, sent a notice to the City formally advising that the sale had closed and providing instructions as to the payment of rent and transmission of notices to the new landlord entity; and
WHEREAS, aside from GPOP Doremus Ave Owner, LLC becoming the landlord of the Property, there are no other changes being made to the Lease Agreement or any of the terms therein; and
WHEREAS, the City approves the Assignment and Assumption of the Lease Agreement for the Property as signed by El Sid Properties, LLC and GPOP Doremus Ave Owner, LLC; and
WHEREAS, this approval shall be retroactive to April 2, 2026, the date of execution of the Assignment and Assumption, and the City shall make any such payments as required by the Lease Agreement retroactive to, and from and after, April 2, 2026.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT
1. Pursuant to the Local Lands and Buildings Law, N.J.S.A. 40A:12-5 et seq., the City may approve the Assignment and Assumption between El Sid Properties, LLC and GPOP Doremus Ave Owner, LLC which shall change the Property’s landlord from El Sid Properties, LLC to GPOP Doremus Ave Owner, LLC and the City is hereby authorized and shall make any and all payments due to the landlord under the Lease Agreement to GPOP Doremus Ave Owner, LLC as required by the Lease Agreement retroactive to, and from and after, April 2, 2026.
2. Both GPOP Doremus Ave Owner, LLC, as landlord, and the City, as tenant, shall be responsible for the enforcement and compliance with the covenants and conditions of the Lease Agreement.
3. Any ordinances inconsistent with this Ordinance are hereby repealed to the extent of such inconsistency.
STATEMENT
This Ordinance approves the Assignment and Assumption agreement between El Sid Properties, LLC and GPOP Doremus Ave Owner, LLC for the purpose of transferring all obligations of the City of Newark as Tenant to GPOP Doremus Ave Owner, LLC as the new landlord.