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ORDINANCE TO DE-DESIGNATE THE HOUSING AUTHORITY OF THE CITY OF NEWARK AS THE REDEVELOPMENT ENTITY FOR BLOCK 161, LOT 1.02 IN THE NEWARK PLAZA URBAN RENEWAL REDEVELOPMENT AREA AND TO AUTHORIZE THE EXECUTION OF A REDEVELOPMENT AGREEMENT WITH BORAIE DEVELOPMENT, LLC.
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WHEREAS, on July 14, 2004, the City of Newark (“City”) utilized the powers of Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. to designate land within the Downtown Newark area as an “area in need of redevelopment,” commonly known as the Newark Downtown Core District Redevelopment Area (“Redevelopment Area”); and
WHEREAS, on October 6, 2004, the Municipal Council adopted Ordinance 6S&Ff adopting the Newark Downtown Core District Redevelopment Plan and Amendment to the Newark Plaza Urban Renewal Plan (“Plan”), which has been amended from time to time; and
WHEREAS, on October 6, 2004, the Municipal Council adopted Resolution 7Rbc appointing the Housing Authority of the City of Newark (“Authority”) as the City’s Redevelopment Entity for the purpose of implementing the Plan on behalf of the City in accordance with N.J.S.A. 40A:12A-4(c); and
WHEREAS, on or about August 5, 2010, the Authority entered into a Redevelopment Agreement with Boraie Development, LLC, or its related entities, such as Newark Urban Renewal Company, LLC (“Redevelopment Agreement”), to implement a portion of the Newark Plaza Urban Renewal Redevelopment Plan concerning Block 161, Lot 1.02; and
WHEREAS, on September 2, 2015, the Municipal Council the adopted Ordinance 6PSF-b authorizing the Fourth Amendment to the Newark Downtown Core District Redevelopment Plan and Amendment to the Newark Plaza Urban Renewal Plan; and
WHEREAS, on Ordinance 6PSF-b adopted on September 2, 2015, the Municipal Council also authorized the de-designation of the Housing Authority as Redevelopment Entity for the Newark Downtown Core District Redevelopment Area upon the transfer of Triangle Park Properties from various Redevelopers within the Redevelopment Area to the Authority; however, allowed the Authority to continue as the Redevelopment Entity for the Newark Plaza Urban Renewal Redevelopment Area and specifically for Block 161, Lot 1.02; and
WHEREAS, on November 10, 2015, the Municipal Council authorized the execution of a Settlement Agreement between the City and Boraie Development, LLC to avoid litigation regarding the Triangle Park properties and the Redevelopment Area; and
WHEREAS, N.J.S.A. 40A:12A-4 authorizes the Governing Body to adopt an Ordinance to change or rescind the designation of a redevelopment entity responsible for implementing a redevelopment plan and the new redevelopment entity assume the obligations of the former redevelopment entity with the consent of redevelopers and the former redevelopment entity and;
WHEREAS, N.J.S.A. 40A:12A-8 authorizes the City to contract with redevelopers to implement its redevelopment plans.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Section 1. Pursuant to N.J.S.A. 40A:12A-4, upon receiving written consent from the Housing Authority and Newark Plaza Urban Renewal Company LLC, the City of Newark hereby de-designates the Housing Authority as the Redevelopment Entity for the property located at Block 161, Lot 1.02 within the Newark Plaza Renewal Redevelopment Area.
Section 2. Pursuant to N.J.S.A. 40A:12A-8(f), upon the de-designation of the Housing Authority as the Redevelopment Entity for Block 161, Lot 1.02, the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development, are each hereby authorized to enter into an Assignment and Assumption Agreement with the Housing Authority for the City of Newark to assume the Redevelopment Agreement and are further authorized to revise and execute an amendment to the Redevelopment Agreement with Boraie Development, LLC, 120 Albany Street, Suite 800, New Brunswick, New Jersey 08901, and/or its affiliated entity Newark Plaza Urban Renewal Company LLC, concerning Block 161, Lot 1.02.
STATEMENT
Ordinance authorizing: (1) the de-designation of the Housing Authority of the City of Newark as the Redevelopment Entity for the property located at Block 161, Lot 1.02, within the Newark Plaza Renewal Redevelopment Area, and, upon the de-designation, (2) the Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development, to enter into an Assignment and Assumption Agreement with the Housing Authority for the City of Newark to assume the Redevelopment Agreement and further authorizing them to revise and execute an amendment to the Redevelopment Agreement with Boraie Development, L.L.C.