Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: Resolution Endorsing Relocation Plan for Blanchard Street Redevelopment Area
Purpose: Accept the Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area for the relocation of certain leaseholds in the Blanchard Street Redevelopment Area and authorizes it to be submitted to the Department of Community Affairs ("DCA") and to be implemented after approval by the DCA.
Additional Information:
Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area prepared by Phillips Preiss Grygiel, LLC, 33 Newark Street, Hoboken, New Jersey 07030.
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WHEREAS, on December 17, 2008, by Resolution No. 7R3-D, the City of Newark ("City") Municipal Council authorized the City's Central Planning Board to undertake a preliminary investigation to determine whether Block 5001, Lots 93, 50, 50.01, 49, 48, 46, 42, and 40; and Block 2438, Lots 74, 76, 78, 82, 84, 85, and 92 (the "Blanchard Street Redevelopment Area") (Collectively referred to as the "Study Area") should remain designated as in need of redevelopment; and
WHEREAS, on May 2, 2011, the City's Central Planning Board adopted a resolution that recommended to the City's Municipal Council the Designation of the Study Area as an area in need of redevelopment pursuant to the Local Redevelopment and Housing Law ("LRHL"), N.J.S.A. 40A:12A-1 et seq.; and
WHEREAS, by Resolution No. 7R3-B, adopted on August 3, 2011, the City's Municipal Council determined that the Study Area qualified as an "area in need of redevelopment" under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.; and
WHEREAS, the Blanchard Street Redevelopment Area is subject to the 13th Amendment to the Urban Renewal Plan Industrial River Project ("Redevelopment Plan"), which was adopted on September 21, 2005 by the City's Municipal Council through Ordinance No. 6PhS&FD; and
WHEREAS, on March 15, 2006 the City's Municipal Council, through Resolution No. 7RG, designated Morris Fairmount Associates, LLC ("Redeveloper") as the redeveloper for the Blanchard Street Redevelopment Area and authorized the City to enter into a Redevelopment Agreement with the Redeveloper, which was fully executed by all of the parties on April 11, 2006; and
WHEREAS, Section 8.1 of the Redevelopment Agreement provides, among other things, that the "Redeveloper shall be required to make good-faith efforts to acquire properties within the Project Area through private negotiations with the individual property owners. If the Redeveloper is unable to acquire the property(s) through private negotiations, Redeveloper shall notify the City in writing and the City shall expeditiously commence the necessary actions to acquire said property(s) pursuant to Eminent Domain under State Law and this Agreement;" and
WHEREAS, pursuant to the Redevelopment Agreement, the Redeveloper engaged in efforts to acquire 168-174 and 176-188 Blanchard Street, Newark, New Jersey, commonly known as Block 5001, Lots 48 and 49 on the Official Tax Map and Tax Duplicates of the City, (the "Property"), but was unsuccessful in doing so, and therefore, the Redeveloper notified the City in writing to pursue acquisition of the Property in accordance with the Redevelopment Agreement and the Redevelopment Plan; and
WHEREAS, Section 8.5 of the Redevelopment Agreement provides, among other things, that the "Redeveloper, as part of its obligations herein, shall be responsible to pay all reasonable costs and fees incurred by the City in acquiring properties in the Project Area through Eminent Domain, including but not limited to: (a) Condemnation Award; (b) all cost and fees including the cost of professional fees, expert fees, inspections, appraisals, court deposits and the like; (c) all costs and fees for relocation assistance paid to the residents or businesses displaced by the Project in accordance with the WRAP"; and
WHEREAS, pursuant to the Relocation Assistance Act N.J.S.A. 20:4-1 et seq., owners and tenants of properties within the Blanchard Street Redevelopment Area that are acquired as part of the redevelopment are entitled to relocation assistance; and
WHEREAS, pursuant to the Relocation Assistance Act, N.J.S.A. 20:4-1 et seq. a Workable Relocation Assistance Plan ("WRAP") must be prepared by the City prior to acquisition of properties within the Blanchard Street Redevelopment Area; and
WHEREAS, in accordance with Section 8.6 of the Redevelopment Agreement, the Redeveloper deposited an initial escrow ("Acquisition Escrow") of $50,000.00 to pay for costs associated with implementing the Redevelopment Plan including cost of acquisition, appraisals, and professional fees and agreed to replenish the Acquisition Escrow to the full amount of $50,000.00 if it was reduced to an amount of $10,000.00 or less; ; and
WHEREAS, Maraziti, Falcon, and Healey, LLP has been retained by the City of Newark to assist in the acquisition of properties within the Redevelopment Area by purchase or condemnation; and
WHEREAS, in order to implement the Redevelopment Plan it will be necessary to acquire the properties within the Blanchard Street Redevelopment Area, which will result in the relocation of certain leaseholds located therein; and
WHEREAS, Maraziti, Falcon, and Healey, LLP retained Phillips Preiss Grygiel, LLC for the purpose of preparing a Workable Relocation Assistance Plan ("WRAP") for 134-142 Blanchard Street, Block 5001, Lot 93, and 168-174 Blanchard Street, Block 5001, Lots 48 and 49, within the Blanchard Street Redevelopment Area for the Redevelopment Project; and
WHEREAS, pursuant to Section 8.5 of the Redevelopment Agreement all costs related to the retention of Phillips Preiss Grygiel, LLC and Maraziti, Falcon, and Healey, LLP in compliance with the Relocation Assistance Act shall be paid by the Redeveloper; and
WHEREAS, in December 2013, Phillips Preiss Grygiel, LLC produced the attached WRAP for the City of Newark entitled "Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area" for submittal to the New Jersey Department of Community Affairs for its review and approval.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. It hereby accepts the attached Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area prepared by Phillips Preiss Grygiel, LLC, 33 Newark Street, Hoboken, New Jersey 07030.
2. It hereby authorizes the attached Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area to be submitted to the New Jersey Department of Community Affairs ("DCA") for its review and approval.
3. Upon approval by the DCA, the City is hereby authorized to implement the Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area when and as appropriate.
4. This Resolution shall take effect immediately.
STATEMENT
This Resolution accepts the Workable Relocation Assistance Plan for the Blanchard Street Redevelopment Area for the relocation of certain leaseholds in the Blanchard Street Redevelopment Area and authorizes it to be submitted to the Department of Community Affairs ("DCA") and to be implemented by the City after approval by the DCA.