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 Beacon Development Partners, LLC to amend the Project Scope
Entity Name: Beacon Development Partners, LLC
Entity Address: 275-277 16th Avenue, C2, Newark, New Jersey 07103
Sale Amount: $142,717.26
Cost Basis: (X) $6.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $291,700.00
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)
375-377 South 20th Street/Block 1789/Lot 11/West Ward
16-18 Ferdinand Street/Block 1789/Lot 49/West Ward
8-14 Ferdinand Street/Block 1789/Lot 51/West Ward
376 Grove Street/Block 1789/Lot 55/West Ward
Additional Information:
Resolution 7R2-e, adopted on May 4, 2022, authorized the Private Sale/Redevelopment pursuant to the Agreement for the Sale and Redevelopment of Land.
The Developer received ownership of 16-18 Ferdinand Street, 8-14 Ferdinand Street and 376 Grove Street via QuitClaim Deed on May 13, 2024.
This Resolution authorizes a First Amendment to the Agreement for the Sale and Redevelopment of Land to amend the Project Scope.
body
WHEREAS, on May 4, 2022, the Newark Municipal Council adopted Resolution 7R2-e (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 (“Original Agreement”), for the sale of the following City-owned properties (the “Properties”) to Beacon Development Partners, LLC, (“Redeveloper”), pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., located within the West Ward, no longer needed for public use, in accordance with Ordinance 6S&Fc(S) on August 17, 2005, adopting the Second Amendment to the West Ward Redevelopment Plan, which governs the redevelopment of City-owned properties located within the West Ward, which includes the above-referenced Properties, in the amount of One Hundred Forty-Two Thousand Seven Hundred Seventeen Dollars and Twenty-Six Cents ($142,717.26), to construct twenty-one (21) one-family townhome villas consisting of at least sixty-nine (69) bedroom units (“Scope of Project”):
ADDRESS BLOCK LOT SIZE SQ. FEET
|
375-377 South 20th Street 16-18 Ferdinand Street 8-14 Ferdinand Street 376 Grove Street |
1789 1789 1789 1789 |
11 49 51 55 |
40.1X107 4,290.70 50X133.3 6,665 84.7X133.3 11,290.51 15.4X100 1,540 |
Total Square Footage: 23,786.21 sq. ft.
Total Purchase Price: $142,717.26 ($6.00 per sq. ft.); and
WHEREAS, on or about February 13, 2024, the City and Redeveloper fully executed the Original Agreement and the Properties were transferred to Redeveloper with the exception of the property located at 375-377 South 20th Street, Block 1789, Lot 11, which was not transferred due to title issues; and
WHEREAS, while the Redeveloper has actively worked towards the redevelopment of the Properties, it has been unable to due to funding restrictions and zoning changes within the City; and
WHEREAS, as a result of the delays, Redeveloper did not redevelop the Properties in accordance with the Original Agreement; and
WHEREAS, Redeveloper has requested an amendment of the Scope of Project in the Original Agreement, from constructing twenty-one (21) one-family townhome villas, consisting of at least sixty-nine (69) bedroom units, to six (6) affordable townhome dwellings with three bedrooms each, one (1) three family (3) home for sale and a 25-unit affordable rental development (the “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 Redeveloper (“Amended Agreement”); and
WHEREAS, the City and Redeveloper desire to amend the Original Resolution and enter into the Amended Agreement, to memorialize the terms and conditions of the sale and redevelopment of the Properties, to include the Amended Project Scope, in a form substantially consistent to the Amended Agreement, attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. 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 (“Amended Agreement”), in the form attached hereto as Exhibit A, with Beacon Development Partners, LLC, 275-277 16th Avenue, C2,, Newark, New Jersey 07103 (the “Redeveloper), for the private sale and rehabilitation 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 Amended Agreement, and the West and Ward Redevelopment Plan, as amended, to amend the Scope of Project from constructing twenty-one (21) one-family townhome villas, consisting of at least sixty-nine (69) bedroom units, to six (6) affordable townhome dwellings with three bedrooms each, one (1) three family (3) home for sale and a 25-unit affordable rental development (the “Amended Project Scope”):
ADDRESS BLOCK LOT SIZE SQ. FEET
|
375-377 South 20th Street 16-18 Ferdinand Street 8-14 Ferdinand Street 376 Grove Street |
1789 1789 1789 1789 |
11 49 51 55 |
40.1X107 4,290.70 50X133.3 6,665 84.7X133.3 11,290.51 15.4X100 1,540 |
Total Square Footage: 23,786.21 sq. ft.
Total Purchase Price: $142,717.26 ($6.00.00 per sq. ft.).
2. All other terms and conditions of the Agreement for the Sale and Redevelopment of Land (“Original Agreement”), authorized pursuant to Resolution 7R2-e adopted by the Newark Municipal Council on May 4, 2022 (“Original Resolution”) shall remain in full force and effect.
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 Amended Agreement and may enter into any related documents, which may be necessary in order to effectuate the Amended Agreement.
4. 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.
5. 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.
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 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, 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 Beacon Development Partners, LLC, 275-277 16th Avenue, C2, Newark, New Jersey 07103, to amend the Project Scope.