Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to Agreement for the Sale and Redevelopment of Land to Creative Development Real Estate, LLC, to change the Project Description for 861-865 South 12th Street.
Entity Name: Creative Development Real Estate, LLC
Entity Address: 732 Bergen Street, Newark, New Jersey 07108
Sale Amount: $54,750.00
Cost Basis: (X) $6.00PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $81,300.00
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)
732 Bergen Street/Block 2707/Lot 50/South Ward
861-865 South 12th Street/Block 3008/Lot 65/South Ward
Additional Information:
Resolution 7R2-a adopted on September 2, 2020, 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 for 861-865 South 12th Street. The Certificate of Completion has been issued for 732 Bergen Street as that project has been completed.
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WHEREAS, on September 2, 2020 the Newark Municipal Council adopted Resolution 7R2-a (the “Original Resolution”), which authorized 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 (“Agreement”), for the sale of the following City-owned properties (the “Properties”) to Creative Development Real Estate, LLC, 1203 River Toad, Apt. 9H, Edgewater, New Jersey 07020 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the South Ward, no longer needed for public use, in accordance with the Third Amendment to the South Ward Redevelopment Plan, adopted by Ordinance 6S&Fd(S) on August 17, 2005, as amended, which governs the redevelopment of City-owned property located in the South Ward, in the amount of Fifty-Four Thousand Seven Hundred Fifty Dollars and Zero Cents ($54,750.00), for the construction of a residential two-family building and a residential multi-family development for rent (“Scope of Project”):
ADDRESS WARD BLOCK LOT
732 Bergen Street South 2707 50
861-865 South 12th Street South 3008 65
WHEREAS, pursuant to the Original Resolution, the Agreement with the Redeveloper, attached hereto as Exhibit E, was executed on or about March 30, 2022, and the Properties were transferred on or about April 12, 2022; and
WHEREAS, while the Redeveloper has completed the construction of 732 Bergen Street, construction of a residential two-family building, and received a Certificate of Completion from the City of Newark, attached hereto as Exhibit C; and
WHEREAS, while the Redeveloper has actively worked towards completing the construction of the 861-865 South 12th Street, pursuant to the Agreement, Redeveloper has incurred several challenges including substantial construction cost increases in material and evolving changes in the needs of the surrounding community; and
WHEREAS, the Redeveloper wishes to update the Scope of Project description for the property located at 861-865 South 12th Street, from the construction of a residential multi-family development for rent to the construction of two (2) new market rate four-family residential homes for rental by subdividing the lot (“Amended Scope of Project”), attached hereto as Exhibit B; and
WHEREAS, the Redeveloper’s Amended Scope of Project was approved by the Newark Central Planning Board on March 9, 2026, attached hereto as Exhibit D; and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Scope of Project and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale snd Redevelopment of Land, with the Redeveloper for the Amended Scope of Project (“Amended Agreement”); and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to amend the Scope of Project and enter into the First Amendment to the Agreement for the Sale and Redevelopment of Land (“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; and
WHEREAS, the Newark Municipal Council believes the Amended Agreement with the Amended Scope of Project is in the vital and best interest of the City of Newark.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-a, adopted on September 2, 2020 (“Original Resolution”) by the Newark Municipal Council and the Agreement for the Sale and Redevelopment of Land (“Original Agreement”) are hereby amended to change the following:
• The Scope of Project, for the property located at 861-865 South 12th Street, Newark, New Jersey (Block 3008/Lot65), from the construction of a residential multi-family development for rent to the construction of two (2) new market rate four-family residential homes for rent(“Amended Scope of Project”).
2. 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 Creative Development Real Estate, LLC, 732 Bergen Street, Newark, New Jersey 07108 (the “Redeveloper), for the private sale and rehabilitation of the following Property, 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 Amended Agreement and the South Ward Redevelopment Plan, as amended, to amend the Scope of Project (“Amended Agreement”):
ADDRESS WARD BLOCK LOT
861-865 South 12th Street South 3008 65
3. All other terms and conditions of the Original Resolution and the Original Agreement shall remain in full force and effect.
4. 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.
5. The executed Amended Agreement 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 Creative Development Real Estate, LLC, 732 Bergen Street, Newark, New Jersey 07108 (“First Amendment”), to amend the Scope of Project.