Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: First Amendment to the Agreement for the Sale and Redevelopment of Land, to Rising Plains 570 LLC, to amend the Scope of the Project
Entity Name: Rising Plains 570 LLC
Entity Address: 1515 Morris Place, Hillside, New Jersey 07205-0720
Sale Amount: $115,206.84
Cost Basis: (X) $7.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $328,200.00
Appraised Amount: $0.00
Contract Period: To commence within three (3) months and be completed within eighteen (18) 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)
497-499 Bergen Street/Block 2611/Lots 29, 30 and 36/Central Ward
509-513 Bergen Street/Block 2611/Lot 32/Central Ward
507 Bergen Street/Block 2611/Lot 33/Central Ward
215 Rose Street/Block 2611/Lot 38/Central Ward
Additional Information:
Resolution 7R2-a, adopted on February 7, 2024, 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 amend the Scope of the Project.
Failed 7R2-b (s) 121024
body
WHEREAS, on February 7, 2024, the Newark Municipal Council adopted Resolution 7R2-a (the “Original Resolution”), which authorized the Mayor and/or his designee 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 property (the “Property”), to Rising Plains 570 LLC, 1515 Morris Place, Hillside, New Jersey 07205-0720 (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the Central Ward, no longer needed for public use, in accordance with the First Amendment to the Central Ward Redevelopment Plan, adopted by Ordinance 6S&Fe(S) on August 17, 2005, as amended, which governs the redevelopment of City-owned properties located within the Central Ward, in the amount of One Hundred Fifteen Thousand Two Hundred Six Dollars and Eighty-Four Cents ($115,206.84):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
497-499 Bergen Street Central 2611 29, 30, 36 9570SF 9,570
509-513 Bergen Street Central 2611 32 61.4x58 3,561.2
507 Bergen Street Central 2611 33 31.3x38.4 1,201.92
215 Rose Street Central 2611 38 25x85 2,125
Total Square Footage: 16,458.12
Total Purchase Price: $115,206.84 ($7.00 per sq. ft.); and
WHEREAS, pursuant to the Original Resolution, the Agreement, attached hereto as Exhibit A, was executed on or about March 19, 2024; and
WHEREAS, while the Redeveloper has actively worked towards completing the purchase of the Property, pursuant to the Agreement and commence the redevelopment of the Property, it has not been successful due to discrepancies between the original property map and the actual site dimensions; and
WHEREAS, as a result, the Property was not transferred to Redeveloper and the Redeveloper is requesting an amendment of the Scope of Project in the Agreement to the new construction of three (3), affordable two-family homes at less than 80% AMI and one (1) three-family home to sell at market rate, each property will have a one car garage (“Amended Project Scope”); and
WHEREAS, the Deputy Mayor/Director of the Department of Economic Housing and Development has reviewed and approved the Amended Project Scope and recommends that the Newark Municipal Council authorize the execution of the First Amendment to the Agreement for the Sale and Redevelopment of Land with the Redeveloper (“Amended Agreement”); and
WHEREAS, the Newark Municipal Council believes the Amended Project Scope, as that term is defined herein, is in the vital and best interests of the City of Newark (“City”) and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution, to approve the sale of the Property and to change the purpose of the sale to reflect the Amended Project Scope, 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 Property, in a form substantially consistent to the Amended Agreement, attached hereto as Exhibit B.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R2-a, adopted on February 7, 2024 (“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 Scope of Project, from new construction of four (4) affordable, two family homes at less than 80% Area Median Income (“AMI”) and one (1), three family home to sell at market rate, with each property having a one car garage (“Original Scope of Project”), to new construction of three (3), affordable two-family homes at less than 80% AMI and one (1) three-family home to sell at market rate, with each property having a one car garage (“Amended Project Scope”).
2. 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 First Amendment to the Agreement for the Sale and Redevelopment of Land, in the form attached hereto as Exhibit B, with Rising Plains 570 LLC, 1515 Morris Place, Hillside, New Jersey 07205-0720 (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 First Amendment to the Agreement for the Sale and Redevelopment of Land, and the Central Ward Redevelopment Plan, as amended, to amend the Scope of Project, to allow for the new construction of three (3) affordable two-family homes at less than 80% AMI and one (1) three-family home to sell at market rate, with each property having a one car garage (“Amended Agreement”):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
497-499 Bergen Street Central 2611 29, 30, 36 9570SF 9,570
509-513 Bergen Street Central 2611 32 61.4x58 3,561.2
507 Bergen Street Central 2611 33 31.3x38.4 1,201.92
215 Rose Street Central 2611 38 25x85 2,125
Total Square Footage: 16,458.12
Total Purchase Price: $115,206.84 ($7.00.00 per sq. ft.).
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 and Quit Claim Deed 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.
8. 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 Property. Said Quitclaim Deed conveying title to the Property 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, 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 Rising Plains 570 LLC, 1515 Morris Place, Hillside, New Jersey 07205-0720 (“First Amendment”), 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 First Amendment and the Central Ward Redevelopment Plan, as amended, to amend the Scope of Project:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
497-499 Bergen Street Central 2611 29, 30, 36 9570SF 9,570
509-513 Bergen Street Central 2611 32 61.4x58 3,561.2
507 Bergen Street Central 2611 33 31.3x38.4 1,201.92
215 Rose Street Central 2611 38 25x85 2,125
Total Square Footage: 16,458.12
Total Purchase Price: $115,206.84 ($7.00.00 per sq. ft.).