Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Docket No.: Not Applicable
Claimant: Hess Corporation, LLC, 1501 McKinney Street, Houston, Texas 77010
Claimant's Attorney: Not Applicable
Settlement Amount: Not Applicable
Funding Source: Not Applicable
Additional Comments:
This is a Settlement Agreement and Release to pre-litigation with Hess Corporation, LLC, of 1501 McKinney Street, Houston, Texas 77010, the owner of real property located in the City of Newark at 921-979 Delancy Street and designated as Block 5074, Lot 25 on the Official Tax Map of the City of Newark (the “Hess Property”). The Settlement designates Hess as the Redeveloper of the Hess Property. No municipal funds are required.
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WHEREAS, Hess Corporation, LLC, 1501 McKinney Street, Houston, Texas 77010, is the owner of real property located in the City at 921-979 Delancy Street and designated as Block 5074, Lot 25 on the Official Tax Map of the City of Newark (the “Hess Property”); and
WHEREAS, the Municipal Council (the “Council”), adopted Resolution 7R2-a on January 19, 2017, which authorized and directed the Central Planning Board of the City of Newark (the “Planning Board”), to undertake a preliminary investigation to determine if an area classified as the “Doremus Avenue Study Area” qualified as a Condemnation Redevelopment Area, pursuant to Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the “Redevelopment Law”); and
WHEREAS, the Hess Property was included in the Doremus Avenue Study Area; and
WHEREAS, pursuant to Resolution 7R2-a as amended and adopted on January 23, 2019, the Council designated the Doremus Avenue Study Area as a Condemnation Redevelopment Area; and
WHEREAS, Hess sent a letter, dated March 15, 2019, to the City’s Department of Economic and Housing Development objecting to inclusion of the Hess Property in the Condemnation Redevelopment Area and requested that the Hess Property be excluded and removed therefrom; and
WHEREAS, the stated basis for Hess’s request to exclude the Hess Property from the Condemnation Redevelopment Area was that the Hess Property is the site of the Newark Energy Center (“NEC”) power plant that is currently in operation and because the Hess Property and the development of the NEC power plant were specifically referenced in an earlier Settlement Agreement and Mutual Release (the “2012 Settlement Agreement”) between Hess, NEC, and the City which was entered to resolve litigation entitled Hess Corporation v. City of Newark, and the Newark Central Planning Board (Docket No. ESX-L-3465-09), wherein Hess challenged the validity of a Resolution determining that other property owned by Hess was an “area in need of redevelopment”; and
WHEREAS, the Municipal Council by Resolution 7R3-d(AS) adopted on May 2, 2012, authorized the execution of the 2012 Settlement Agreement which, in relevant part, stated that the “City and Planning Board acknowledge that the development of the NEC will effectuate a long-term redevelopment goal of the Port Newark area”; and
WHEREAS, based upon the terms of the 2012 Settlement Agreement and the fact that the NEC power plant has been developed and is currently operational as agreed to thereunder, it is Hess’ position that the City’s inclusion of the Hess Property in a condemnation redevelopment area in light of the recent successful development of the Property area is unsupportable and erroneous and Hess continues to object to such inclusion; and
WHEREAS, in an effort to amicably resolve this matter and avoid the time and expense of litigation of Hess’ challenge to the inclusion of the Hess Property in the Doremus Avenue Study Area, the Parties wish to enter into the attached Settlement Agreement; and
WHEREAS, as part of the Settlement Agreement, the City agrees that it will not condemn or otherwise take the Hess Property, through the City’s power of eminent domain or otherwise, based upon the inclusion of the Hess Property within the Doremus Avenue Redevelopment Area; and
WHEREAS, if and when the City adopts a redevelopment plan for the Doremus Avenue Redevelopment Area, such redevelopment plan shall expressly identify the Hess Property as a property that shall not be subject to acquisition through condemnation and it shall further provide that “the Hess Property has been fully-developed consistent with the provision, goals and objectives of this redevelopment plan”; and
WHEREAS, the Settlement Agreement also provides that, upon its execution, Hess will be designated as the redeveloper of the Hess Property, by the Council’s adoption of a resolution in the form attached as Exhibit A to the Settlement Agreement, and that the City shall issue a Certificate of Completion to Hess for the Hess Property in the form attached as Exhibit B to the Settlement Agreement; and
WHEREAS, the Corporation Counsel has reviewed the Settlement Agreement and is familiar with the basis of this potential litigation and recommends that it is in the best interest of the taxpayers to settle to avoid the cost, expense, delay and uncertainty of litigation, that this matter be resolved amicably through the Settlement Agreement and General Release; and
WHEREAS, the terms of the settlement are set forth in the Settlement Agreement and General Release and does not include any monetary payment on the part of the City of Newark to the Plaintiff.
NOW THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Corporation Counsel, is authorized, on behalf of the City of Newark to enter into and execute a Settlement Agreement and Release.
2. Consistent with the terms of the Settlement Agreement and Release, upon the full execution of the Settlement Agreement, the City agrees to designate Hess as the redeveloper of the Hess Property.
3. The City shall issue a Certificate of Completion to Hess for the Hess Property in the form attached as Exhibit B to the Settlement Agreement.
4. The Settlement Agreement and Resolution does not admit nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigation costs.
5. The Corporation Counsel shall file a fully executed copy of the Settlement Agreement and Release in the Office of the City Clerk.
6. This Resolution shall be effective upon adoption in accordance with applicable laws of the State of New Jersey.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, the Corporation Counsel on behalf of the City of Newark, to enter into and execute a Settlement Agreement and Release, pre-litigation, with Hess Corporation, LLC, 1501 McKinney Street, Houston, Texas 77010, the owner of real property located in the City at 921-979 Delancy Street and designated as Block 5074, Lot 25 on the Official Tax Map of the City of Newark. The Settlement designates Hess as the Redeveloper of the Hess Property. No municipal funds are required.