Title
Dept/Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Confirming Intent
Purpose: Confirming that by operation of law and based upon the merger doctrine two (2) properties were merged and therefore foreclosed under the In Rem Tax Foreclosure.
List of Properties:
(Address/Block/Lot/Ward)
28-82 Barclay Street/2556/62/Central Ward
84-140 Barclay Street/2563/1/Central Ward
Additional Information:
Based on errors in the water billing records, 28-82 Barclay Street was not treated as merged and property is part of redevelopment agreement entered into by Resolution 7R3A(S)112911 with Old Third Ward Redevelopment, LLC.
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WHEREAS, by Resolution #7RA(S-2)071685, the City of Newark granted a tax abatement (the “Tax Abatement”) and authorized the execution of a financial agreement providing for a payment in lieu of taxes with Douglas Harrison Housing Corporation (the “Prior Redeveloper”) relating to the following real properties owned by the Prior Redeveloper located in the Central Ward (the “Properties”):
Street Address Block/Lot
1-55 Somerset Street Block 2556/Lot 1
84-140 Barclay Street Block 2563/ Lot 1
57-117 ½ Somerset Street Block 2564/ Lot 76
28-82 Barclay Street Block 2556/ Lot 62
WHEREAS, because the properties are contiguous and were under common ownership, based on the common law merger doctrine and because the financial agreement treated the Properties as one for tax purposes, the Properties were merged as a matter of law, however, this fact was never properly reflected in the City’s tax records (i.e. the Properties retained separate tax block and lot identifiers); and
WHEREAS, the Prior Redeveloper defaulted in the performance of its obligations under the Tax Abatement and as a result, the City initiated an In Rem Tax Foreclosure of the Properties, ultimately obtaining a Final Judgment of In Rem Foreclosure, which was recorded in the Essex County Clerk’s Office on January 16, 2008 in Book 12112, Page...
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