Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Private Sale/Redevelopment
Purpose: To authorize the execution of an Amendment to Redevelopment Agreement and Designation of New Redeveloper and Transfer of Property/Project to New Redeveloper.
Entity Name: May Newark, LLC
Entity Address: 32 Cross Street, Suite 301, Lakewood, New Jersey 08701
Sale Amount: $0.00
Cost Basis: (X) PSF ( ) Negotiated (X) N/A ( ) Other: Appraised amount
Assessed Amount: N/A
Appraised Amount: N/A
Contract Period: N/A
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
(Address/Block/Lot/Ward)
1155-1157 McCarter Hwy Central Block 9 Lot 6
450-466 Broad St Rear Central Block 26 Lot 1
5-55 Division Street Central Block 26 Lot 15.01
2-28 Division Street Central Block 27 Lot 1.01
30-42 Division Street Central Block 27 Lot 1.02
44-56 Division Street Central Block 27 Lot 1.03
Additional Information:
body
WHEREAS, in order to stimulate the reinvigoration of the City, by Resolution 7Rdo(AS) adopted by the Municipal Council on June 15, 2005, the entire City of Newark was designated as an area in need of rehabilitation pursuant to the Act; and
WHEREAS, by Ordinance 6PSF-a adopted on January 21, 2009, the Municipal Council adopted the Broad Street Station District Redevelopment Plan (as amended from time to time, the “Broad Street Redevelopment Plan”), which provided for the redevelopment of areas surrounding the Broad Street New Jersey Transit Commuter Rail Station; and
WHEREAS, the Municipal Council approved the Newark’s River: Public Access & Redevelopment Plan on August 7, 2013 (the “Original River Redevelopment Plan”), pursuant to the resolution to provide a legal framework that allows new uses and mixes of uses, consolidates design standards to create valuable urban places, and provides for public access as required by federal and state law, expedite and catalyze private development and streamline entitlements for development along Newark’s riverfront; and
WHEREAS, the Municipal Council approved the First Amendment to the River Redevelopment Plan on October 11, 2017 (the “First Amendment to the River Redevelopment Plan,” and together with the Original River Redevelopment Plan, as amended from time to time, the “River Redevelopment Plan”); and
WHEREAS, the River Redevelopment Plan states that it supersedes the Broad Street Redevelopment Plan; and
WHEREAS, pursuant to N.J.S.A. 40A: 12A-8(f), the City is authorized to arrange or contract with redevelopers for the planning, re-planning, construction or undertaking of any redevelopment project; and
WHEREAS, LEG 450 Broad Street, LLC (“Original Redeveloper”), was designated as the redeveloper of the Project Area (as hereafter defined) and entered into a Redevelopment Agreement with the City dated March 11, 2019 (as amended, the “Original Redevelopment Agreement”); and
WHEREAS, the Original Redeveloper is the owner of certain parcels of real property previously shown on the Official Tax Map of the City as Block 9, Lots 6 and 9; Block 26, Lots 1 and 15.01; and Block 27, Lots 1 and 3, located in the Central Ward of the City; and
WHEREAS, the City approved the merger and/or subdivision of such property, such that the City’s Official Tax Map has changed to reflect the previously shown parcels as: Block 26, Lots 1 and 15.01; Block 27, Lots 1.01-1.03 (f/k/a Block 27, Lot 1 and Block 9, Lot 9) and 3, and Block 9, Lot 6 (the “Redeveloper Property” or “Property”); and
WHEREAS, the Essex County Improvement Authority (“ECIA”) is the current owner of Block 26, Lot 15.02 (the “ECIA Garage Site”); and
WHEREAS, the Original Redeveloper completed the demolition of the prior improvements on the Property in accordance with the Original Redevelopment Agreement; and
WHEREAS, pursuant to Resolution 7R2-a(S), adopted on February 26, 2019, the Municipal Council designated the entire Property as an area in need of redevelopment in accordance with the LRHL; and
WHEREAS, the Railroad Rehabilitation and Improvement Financing program by the United States Department of Transportation with respect to the financing of transit-oriented developments (“RRIF Financing”) expired prior to Original Redeveloper securing the RRIF financing; and
WHEREAS, Original Redeveloper, as seller, and Redeveloper, as purchaser, have entered into a purchase and sale agreement (the “Contract”) whereby Redeveloper will acquire the Property for the purposes of constructing the Project (as hereafter defined); and
WHEREAS, New Jersey Transit is the current owner of Block 25.01, Lot 61 (the “NJ Transit Parcel,” and the NJ Transit Parcel, together with the Redeveloper Property and the ECIA Garage Site, constitute the “Project Area”); and
WHEREAS, the Project Area is located entirely within Sub-District A of the Broad Street Redevelopment Plan; and
WHEREAS, the Block 26, Lots 15.01, 15.02 and 60 of the Project Area are also located within the MX-3 Zone of the River Redevelopment Plan (the governing redevelopment plan with respect to those lots); and
WHEREAS, the Broad Street Station Redevelopment Plan is the governing Redevelopment Plan for the remainder of the Project Area; and
WHEREAS, the Original Redeveloper originally proposed and the Central Planning Board has granted preliminary site plan and final major subdivision approval for a seven (7) phase mixed use development on and adjacent to the former Newark Bears Stadium site, consisting of up to 2,526 residential units, 130,000 sq.ft. of retail, 2,000,000 sq. ft. of office space, 48 live/work units and 3,300 parking spaces (the “Original Project); and
WHEREAS, the MAY Newark, LLC (“Redeveloper”), seeks to amend the proposed Project to consist of a nine (9) phase mixed use development on the Property consisting of: approximately 4,200 residential units; up to 3,000 parking spaces; at least 100,000 sq. ft. consisting of a mix of hospitality/destination retail open to the public and office/co-working space for small business, entrepreneurs, and free-lancers; and publicly accessible green space (the “Project”); and
WHEREAS, the City has determined that the Redeveloper possesses the proper qualifications, financial resources, and capacity to implement and complete the Project in accordance with the Redevelopment Plan and all other applicable laws, ordinances and regulations; and
WHEREAS, the City believes the Project, as that term is defined herein, is in the best interests of the City and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, pursuant to the N.J.S.A. 40A:12A-9 the City must approve the sale, lease or transfer for the redevelopment area or project to the Redeveloper; and
WHEREAS, the City, acting as the redevelopment entity, wishes to designate the Redeveloper as the exclusive redeveloper of the Project Area, subject only to Redeveloper acquiring the Property from Original Redeveloper; and
WHEREAS, this Agreement shall also be subject to the condition that Redeveloper shall acquire the Property from Original Redeveloper, and the rights and obligations hereunder shall become effective upon closing under the Contract, automatically without further action by any of Redeveloper, Original Redeveloper, or the City; and
WHEREAS, upon closing under the Contract (“Closing”), this Agreement shall supersede, amend and restate the Original Agreement, and Original Redeveloper shall be released from all liabilities and obligations under the Original Redevelopment Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Municipal Council does hereby designate MAY Newark, LLC as the redeveloper for the Project Area and authorizes the transfer of the Property to be transferred and sold to MAY Newark, LLC.
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 Amended and Restated Redevelopment Agreement (the “Agreement”), for the redevelopment of the following Properties in accordance with the requirements of N.J.S.A. 40A:12A-9, the terms and conditions of the attached Agreement and the Broad Street Station Redevelopment Plan and the River Redevelopment Plan, as amended:
ADDRESS WARD BLOCK LOT SQ. FT.
1155-1157 McCarter Hwy Central Block 9 Lot 6 9,295.70
450-466 Broad St Rear Central Block 26 Lot 1 10,659.13
5-55 Division Street Central Block 26 Lot 15.01 322,644.56
2-28 Division Street Central Block 27 Lot 1.01 91,223.35
30-42 Division Street Central Block 27 Lot 1.02 29,337.66
44-56 Division Street Central Block 27 Lot 1.03 19,636.85
3. The Deput Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the Amended and Restated Redevelopment Agreement annexed hereto and may enter into access and right of entry agreements and any related documents, which may be necessary in order to effectuate the terms and conditions of the Agreement, all in forms subject to the approval of the City’s Corporation Counsel.
4. The Redeveloper shall be designated as the exclusive redeveloper of the Project Area and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment of the Project Area is hereby rescinded.
5. The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement, and all such other executed agreements authorized by this resolution on file in the Office of 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 to enter into and execute the Amended and Restated Redevelopment Agreement, designates MAY Newark, LLC as the Redeveloper for the Project Area and authorizes the transfer of Property from the prior redeveloper to the Redeveloper MAY Newark, LLC.
ADDRESS WARD BLOCK LOT SQ. FT.
1155-1157 McCarter Hwy Central Block 9 Lot 6 9,295.70
450-466 Broad St Rear Central Block 26 Lot 1 10,659.13
5-55 Division Street Central Block 26 Lot 15.01 322,644.56
2-28 Division Street Central Block 27 Lot 1.01 91,223.35
30-42 Division Street Central Block 27 Lot 1.02 29,337.66
44-56 Division Street Central Block 27 Lot 1.03 19,636.85