Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: An Agreement for the redevelopment of land.
Entity Name: IGBO Catholic Community Heritage and Cultural Center, a New Jersey Non-Profit Corporation
Entity Address: Newark, New Jersey 07108
Sale Amount: $103,773.12 minus a demolition credit in an amount not to exceed $43,870.00
Cost Basis: ( ) $ PSF (X) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $789,700.00
Appraised Amount: $0.00
Contract Period: Not Applicable
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)
192-198 16th Avenue/Block 309.01/Lot 24/Central Ward
184-190 16th Avenue/Block 309.01/Lot 30/Central Ward
519 South 11th Street/Block 309.01/Lot 34/Central Ward
521-523 South 11th Street/Block 309.01/Lot 35/Central Ward
527 South 12th Street/Block 310.01/Lot 28/Central Ward
525 South 12th Street/Block 310.01/Lot 29/Central Ward
523 South 12th Street/Block 310.01/Lot 30/Central Ward
200 16th Avenue/Block 310.01/Lot 36/Central Ward
204-214 16th Avenue/Block 310.01/Lot 38/Central Ward
524 South 13th Street/Block 310.01/Lot 41/Central Ward
Additional Information:
The estimated cost to demolish existing structures on property located at 192-198 16th Avenue (Block 309.01, Lot 24) and 184-190 16th Avenue (Block 309.01, Lot 30) is $43,870.00, which shall be credited to Redeveloper.
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WHEREAS, the purpose of this resolution is to approve the sale and redevelopment of the following City-owned property located in the Central Ward of the City of Newark:
Address Block Lot
192-198 16th Avenue 309.01 24
184-190 16th Avenue 309.01 30
519 South 11th Street 309.01 34
521-523 South 11th Street 309.01 35
527 South 12th Street 310.01 28
525 South 12th Street 310.01 29
523 South 12th Street 310.01 30
200 16th Avenue 310.01 36
204-214 16th Avenue 310.01 38
524 South 13th Street 310.01 41
Purchase Price: $103,773.12; and
WHEREAS, the City of Newark (the “City”) has determined that the above referenced City-owned property is no longer needed for any public use; 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, pursuant to N.J.S.A. 40A:12A-8(g), the City is proceeding with the rehabilitation of the area and is conveying properties, without public bidding, at such prices and upon such terms as it deems reasonable, and said conveyance is made in conjunction with the applicable Redevelopment Plan; and
WHEREAS, the Municipal Council previously adopted Resolution 7Rdo (A.S.) on June 15, 2005, designating the entire City of Newark as an “area in need of rehabilitation” pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the “LRHL”); and
WHEREAS, by Ordinance 6PSF-b dated April 1, 2009, the Municipal Council adopted and approved the Kent/Brenner/Springfield Redevelopment Plan (the “Redevelopment Plan”), which provides for the facilitation of the redevelopment of certain City-owned parcels located in the Central Ward and South Ward, which includes the above referenced City Property; and
WHEREAS, said Redevelopment Plan complies with the requirements of all applicable State and Federal statutes and regulations promulgated thereunder; and
WHEREAS, the Redevelopment Plan is applicable to the development and redevelopment of City-owned properties, including that certain parcel of real property shown on the Official Tax Map of the City of Newark, as Block 309.01, Lots 24, 30, 34, 35 and Block 310.01 Lots 28, 29, 30, 36, 38 and 41 (hereinafter “City Property”); and
WHEREAS, the community organization known as IGBO Catholic Community Heritage and Cultural Center, a New Jersey Non-Profit Corporation, located at 15 Van Ness Place, Newark, New Jersey 07108, (the “Redeveloper”) is the owner of the following parcels of real property shown on the Official Tax Map of the City of Newark, as Block 310.01, Lots 20 and 37 (hereinafter “Redeveloper Property”); and
WHEREAS, the City Property and the Redeveloper Property are located adjacent to each other and together shall be identified as the “Property,” unless otherwise stated; and
WHEREAS, the Redeveloper has expressed an interest in redeveloping the Property for a community and cultural center (the “Project”) and submitted a Proposal to the City’s Department of Economic and Housing Development, attached as Exhibit A of the Redevelopment and Property Conveyance Agreement (“Agreement”); and
WHEREAS, based upon the City’s review of the Proposal and other such information, the City has determined that the Redeveloper possesses the proper qualifications and requisite financial resources and capacity to acquire the Property and to redevelop them in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the Agreement, and the Redevelopment Plan; and
WHEREAS, at the Redeveloper’s request, Bison Environmental, LLC (“Bison”), licensed site remediation professional for the Redeveloper, conducted a Phase 1 Environmental Site Assessment on the properties located at 192-198 16th Avenue (Block 309.01, Lot 24), 184-190 16th Avenue (Block 309.01, Lot 30), and 524-528 South 12th Street (Block 309.01, Lot 20) (“AOC Lots” - area of concern) and identified potential areas of concerns on the properties, including, but not limited to the presence of underground storage tanks; and
WHEREAS, the City shall apply for grant funds from the State Hazardous Discharge Site Fund (HDSRF) to be utilized for environmental investigation and remediation of the AOC Lots prior to closing. The City shall remediate the AOC Lots and deliver possession of same only after reasonable removal of the identified areas of concern to the extent required by applicable law. However, if the City does not obtain the financing or Funds required to remediate the AOC Lots within two (2) years of the execution of the Agreement, then the City or the Redeveloper may terminate the Agreement by written notice without any liability asserted by either party due to the termination of the Agreement; and
WHEREAS, the City Property located at 192-198 16th Avenue (Block 309.01, Lot 24) and 184-190 16th Avenue (Block 309.01, Lot 30) includes abandoned structures, the Redeveloper obtained a demolition estimate from Big Chuck General Contractor, attached as Exhibit C of the Agreement, in an amount of Forty-Three Thousand Eight Hundred Seventy Dollars and Zero Cents ($43,870.00), which amount shall be credited to the Redeveloper from the Purchase Price; and
WHEREAS, the City has estimated the value of the City Property at One Hundred Three Thousand Seven Hundred Seventy-Three Dollars and Twelve Cents ($103,773.12); and; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the Department of Economic and Housing Development has recommended that the City sell the City Property to the Redeveloper for the consideration of One Hundred Three Thousand Seven Hundred Seventy-Three Dollars and Twelve Cents ($103,773.12) (the “Purchase Price”), subject to the certain credits as set forth in the RDA, which price, and under terms as the City deems to be reasonable, for the purpose of developing the Property, in accordance with the Act, and the 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, pursuant to N.J.S.A. 40A:12A-8(g), the City may “convey property … without public bidding and at such prices and upon such terms as it deems reasonable”; and
WHEREAS, the City has determined that the City Property is no longer needed for any public use and that the conveyance and redevelopment of the City Property as hereinafter set forth in the Redevelopment and Property Conveyance Agreement (“RDA”) annexed hereto will contribute to the reinvigoration of the City; and
WHEREAS, pursuant to the above mentioned statutory authority, the Department of Economic and Housing Development has recommended that the City sell the City Property to Igbo Catholic Community Heritage and Cultural Center A NJ Non-Profit Corporation, whom is willing to purchase the City Property from the City for the consideration of One Hundred and Three Thousand Seven Hundred and Seventy-Three Dollars and Twelve Cents ($103,773.12), subject to demolition credits in an amount not to exceed Forty-Three Thousand Eight Hundred Seventy Dollars and Zero Cents ($43,870.00), for the purpose of redeveloping the Property, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the Kent/Brenner/Springfield Redevelopment Plan; and
WHEREAS, the City considered Ordinance 6S&Fh adopted on April 7, 2004, regarding the sale of City-owned property to a not-for-profit; and
WHEREAS, the Redeveloper conducted a Phase 1 Environmental Site Assessment which identified potential areas of concerns, including underground storage tanks, on certain parcels comprising the City Property and the Redeveloper Property; and
WHEREAS, The RDA obligates the City, inter alia, to seek grant funding from the State Hazardous Discharge Site Remediation Fund to finance the remediation of the City Property (“HDSRF Funds”) prior to transferring the City Property to the Redeveloper; and
WHEREAS, if the City fails to obtain HDSRF Funds or similar financing to complete the remediation of the City Property within four (4) years of the execution of the RDA, then the City or the Redeveloper may terminate the RDA without liability to either party due to the termination of the RDA; and
WHEREAS, upon the City’s completion of the remediation of the City Property, as evidenced by issuance of a Response Action Outcome (“RAO”) by the City’s Licensed Site Remediation Professional (“LSRP”), the parties would close title to the City Property (assuming all other RDA conditions precedent to closing are satisfied); and
WHEREAS, all post-RAO long-term maintenance, monitoring and reporting requirements associated with the City’s remediation of the City Property (the “Long-Term Compliance Obligations”), if any, will be assumed by Redeveloper at its sole cost and expense; and
WHEREAS, the RDA further stipulates that if the City exhausts all HDSRF Funds prior to completing the remediation of the City Property, the City’s obligation to remediate shall immediately cease and the Redeveloper shall immediately assume, and become solely responsible for completing, the remaining remediation on the City Property, including any Long-Term Compliance Obligations, at its sole cost and expense and with no further financial assistance from the City; and
WHEREAS, under that scenario, the parties would close title to the City Property (assuming all other RDA conditions precedent to closing are satisfied) upon the City’s certification that the HDSRF funds have been exhausted; and
WHEREAS, the RDA requires the Redeveloper to release the City for all conditions at the City Property, which is being conveyed in an “AS IS, WHERE IS, WITH ALL FAULTS” condition and without representation or warranty by the City of any kind; and
WHEREAS, the RDA also requires the Redeveloper to fully release the City from any and all liability of any kind whatsoever that may arise out of, or that is in any way related to, the environmental contamination upon the Property, the remediation of the Property, and the Long-Term Compliance Obligations at the Property, no matter by whom or when asserted; and
WHEREAS, the RDA further requires the Redeveloper to fully indemnify, defend and hold harmless the City from and against any liability, loss, penalty, damage, cost, claim, judgment or expense which the City may sustain, be subject to, or be caused to incur by reason of any claim, suit or action based upon personal injury, death, damage to Property, damage to natural resources, or any environmental contamination, release, discharge or migration of any environmental contaminant upon, to, about or from the Property, arising out of or related to Redeveloper’s activities upon or use of the Property, including, but not limited to any disturbance or restoration of any institutional or engineering controls upon the Property, and compliance (or lack thereof) with the Long-Term Compliance Obligations, as may be applicable to the Property, except for claims arising out of intentional acts or negligence by the City or its agents, employees or representatives; and
WHEREAS, the City believes the Project, as that term is defined in the RDA, is in the vital and best interests of the City and that it promotes the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City has determined that it is appropriate for the City to authorize the execution of the RDA to reflect the foregoing.
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, and the Deputy Mayor/Director of the Department of Economic and Housing Development of the City are hereby authorized to enter into and execute the Redevelopment Agreement with Igbo Catholic Community Heritage and Cultural Center, a NJ Non-profit Corporation, 15 Van Ness Place, Newark, New Jersey 07108 (the “Redeveloper”), in the form attached hereto, for the private sale and redevelopment of the following City-owned property (“City Property”), for One Hundred Three Thousand Seven Hundred Seventy -hree Dollars and Twelve Cents ($103,773.12), minus a demolition credit in an amount not to exceed Forty-Three Thousand Eight Hundred Seventy Dollars and Zero Cents ($43,870.00) in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Agreement, and the Kent/Brenner/Springfield Redevelopment Plan:
Address Block Lot
192-198 16th Avenue 309.01 24
184-190 16th Avenue 309.01 30
519 South 11th Street 309.01 34
521-523 South 11th Street 309.01 35
527 South 12th Street 310.01 28
525 South 12th Street 310.01 29
523 South 12th Street 310.01 30
200 16th Avenue 310.01 36
204-214 16th Avenue 310.01 38
524 South 13th Street 310.01 41
2. The City shall apply for grant funding from the State Hazardous Discharge Site Fund to finance the remediation of the City Property (“HDSRF Funds”) prior to transferring the City Property to the Redeveloper. However, if the City fails to obtain HDSRF Funds to complete the remediation of the City Property within four (4) years of the execution of the RDA, then the City or the Redeveloper may terminate this Agreement by written notice without any liability asserted by either party due to the termination of this Agreement.
3. Said City Property shall be sold to Redeveloper by private sale for the purpose of redeveloping the above-mentioned City Property and the neighboring Redeveloper Property as a community and cultural center.
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 Agreement annexed hereto and may execute any related documents, which may be necessary in order to effectuate the sale of the City Property and the terms and conditions of the Agreement, subject to the approval of the City’s Corporation Counsel.
5. The Redeveloper shall be designated as the exclusive Redeveloper of the Property and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the City Property is hereby rescinded.
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 Agreement and return same to the Department of Economic and Housing Development. Should the Redeveloper fail to execute and return the attached 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 time period.
7. The redevelopment of the City Property shall be commenced in accordance with the Project Schedule attached as Exhibit B of the Agreement.
8. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper to effectuate sale of the City Property. Said Quitclaim Deed conveying title to the City 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.
9. The Director of the Department of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety percent (90%) of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, adopted on November 6, 1085; and ten percent (10%) of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6S&Ff, adopted on June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
10. The Redeveloper shall be required to comply with the City of Newark’s Minority Set Aside Ordinance 6S&Fd, adopted on April 5, 1995; the City of Newark’s Affirmative Action Plan 7Rbp, adopted on March 1, 1995; Federal Executive Order 11246, (as amended by Executive Orders 11375 and 12086) regarding the award of goods and services contracts; and the City of Newark Ordinance 6PSF-c, adopted on June 17, 2015, Amending Title II, Administration, Chapter 4, General Administration, Section 20, Hiring of Newark Residents by Contractors or Other Persons Doing Business with the City of Newark and Section 21, Newark Residents’ Employment Policy, by Adding Language to Address Immediate Short Term Training and Employment Opportunities and Repealing the Newark Employment Commission, a copy of which is attached to the Agreement as Exhibit E, all as may be applicable. In addition, the Redeveloper has agreed to ensure that thirty percent (30%) of all contractors, subcontractors and suppliers shall be Newark base companies.
11. The executed Agreement along with the Quitclaim Deed, and all other executed agreements, if any, authorized by this Resolution 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.
12. The Project to be implemented by the Redeveloper shall conform to the City of Newark Design Guidelines, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Additionally, the Redeveloper shall conduct any environmental investigation and remediation upon the Property as may be necessary, excluding the remediation that the City has agreed to herein. Should the Redeveloper fail to diligently pursue the rehabilitation of the City Property, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the City Property back to the City, in accordance with the terms and conditions of the Agreement and Deed. Failure to exercise or delay in exercising the Right of Reverter by the City shall not constitute a waiver nor shall such failure and or delay serve as a basis for adverse possession of the City Property. Any and all waivers of the City’s Right of Reverter shall be in writing.
13. This Resolution shall take effect immediately.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute the Redevelopment and Property Conveyance Agreement with Igbo Catholic Community Heritage and Cultural Center, a NJ Non-profit Corporation, 15 Van Ness Place, Newark, New Jersey 07108, in the form attached hereto, for the private sale of the following City Property, for $103,773.12, minus a demolition credit in an amount not to exceed $43,870.00, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of Redevelopment and Property Conveyance Agreement, and the Kent/Brenner/Springfield Redevelopment Plan, to redevelop the Property to create a community and cultural center.
Address Block Lot
192-198 16th Avenue 309.01 24
184-190 16th Avenue 309.01 30
519 South 11th Street 309.01 34
521-523 South 11th Street 309.01 35
527 South 12th Street 310.01 28
525 South 12th Street 310.01 29
523 South 12th Street 310.01 30
200 16th Avenue 310.01 36
204-214 16th Avenue 310.01 38
524 South 13th Street 310.01 41