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ORDINANCE AUTHORIZING A REDEVELOPMENT AND PROPERTY DISPOSITION AGREEMENT (THE 2013 REDEVELOPMENT AGREEMENT) BETWEEN THE CITY OF NEWARK, VISION OF HOPE COMMUNITY DEVELOPMENT CORPORATION, THE FRIENDS OF MARION P. THOMAS CHARTER SCHOOL, INC., AND NEW HOPE NOW COMMUNITY DEVELOPMENT CORPORATION IN ORDER TO REPLACE AND SUPERSEDE A 2002 REDEVELOPMENT AGREEMENT GOVERNING THE REDEVELOPMENT OF THE PROPERTIES LOCATED AT 103-109 SUSSEX AVENUE, 121-133 SUSSEX AVENUE, 32-42 NEWARK STREET, AND 36-48 NESBITT STREET AND IDENTIFIED ON THE CITY'S OFFICIAL TAX MAP AS BLOCK 2853, LOTS 1, 3, 4, 37, 44, 62, 74, 78 AND 79 AND TO AUTHORIZE THE FRIENDS OF MARION P. THOMAS CHARTER SCHOOL, INC. TO DEVELOP A CHARTER SCHOOL PROJECT ON BLOCK 2853, LOTS 1, 3, 4, 37, 74, 78, 79 AND A PORTION OF LOT 44,, TO AUTHORIZE NEW HOPE NOW COMMUNITY DEVELOPMENT CORPORATION TO CONSTRUCT A FAMILY LIFE CENTER PROJECT ON BLOCK 2853, LOT 62 AND A PORTION OF LOT 44, AND TO AUTHORIZE THE SALE OF CERTAIN CITY-OWNED PROPERTIES LOCATED AT 22, 24, 26, 28 AND 3|1013| NEWARK STREET AND IDENTIFIED ON THE CITY TAX MAP AS BLOCK 2853, LOTS 8, 10, 12, 14 AND 16 TO THE FRIENDS OF MARION P. THOMAS CHARTER SCHOOL, INC. FOR A PURCHASE PRICE OF $75,000.00 (BASED UPON A PRICE OF $4.00 PER SQUARE FOOT) FOR INCLUSION IN THE CHARTER SCHOOL PROJECT.
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WHEREAS, N.J.S.A. 40A:12-21(k) of the Local Lands and Buildings Law authorizes municipalities to sell land not needed for public use to non-profit entities for the provision of educational and social services to the general public; and
WHEREAS, pursuant to N.J.S.A. 40A:12-21(k), the Municipal Council adopted Ordinance 6S&FA 120902 authorizing the sale of certain City-owned properties located at 103-109 Sussex Avenue, 121-133 Sussex Avenue, 32-42 Newark Street, and 36-48 Nesbitt Street and identified on the City's official tax map as Block 2853, Lots 1, 3, 4, 37, 44, 62, 74, 78 and 79 (collectively, the Original Properties) to Vision of Hope Development Corporation for the purchase price of $215,000.00 so that Vision of Hope Development Corporation could construct a community-based family life center on the Original Properties providing social services, financial services, educational services, training and transitional and substance abuse support services to the general public; and
WHEREAS, Ordinance 6S&FA 120902 also authorized the City to execute a Contract for Private Sale of Land for Redevelopment with Vision of Hope Development Corporation (the 2002 Redevelopment Agreement) requiring, among other things, that Vision of Hope Development Corporation complete the construction of a family life center on the Original Properties and obtain a Certificate of Occupancy on or before December 31, 2008; and
WHEREAS, the City conveyed the Original Properties to Vision of Hope Development Corporation through a deed dated April 3, 2003 which stated, among other things, that such conveyance was being made specifically for the construction of the Vision of Hope Family Life Center, that the Original Properties must be used for a public purpose and could not be transferred for any other use, and that the conveyance was subject to the terms and conditions set forth within Ordinance 6S&FA 120902; and
WHEREAS, on January 7, 2009, the Municipal Council adopted Ordinance 6PSF-e 010709 extending the time to complete the development of the Original Properties and to obtain a Certificate of Occupancy from December 31, 2008 to December 31, 2011; and
WHEREAS, Vision of Hope Development Corporation subsequently filed a Restated Certificate of Incorporation with the State of New Jersey correcting its name to Vision of Hope Community Development Corporation (hereinafter VOH); and
WHEREAS, VOH subsequently decided to explore the redevelopment of a portion of the Original Properties with the family life center and the redevelopment of the remainder of the Original Properties with a charter school; and
WHEREAS, by actions taken on August 24, 2009 and December 10, 2012, the Central Planning Board approved a site plan, as amended, filed by VOH, for the construction of a new charter school to be used by the Marion P. Thomas Charter School on a portion of the Original Properties and for the subdivision of Block 2853, Lot 44; and
WHEREAS, by agreement dated May 16, 2013 by and among VOH, The Friends of Marion P. Thomas Charter School, Inc. (hereinafter the School Redeveloper), The New Hope Baptist Church and New Hope Now Community Development Corporation (hereinafter the Family Life Center Redeveloper), VOH has agreed to sell to the School Redeveloper a portion of the Original Properties (specifically, Block 2853, Lots 1, 3, 4, 37, 74, 78, 79 and a portion of Lot 44) and to sell to the Family Life Center Redeveloper the remaining portion of the Original Properties (specifically, Block 2853, Lot 62 and a portion of Lot 44); and
WHEREAS, due to the designation of the entire City as an area in need of rehabilitation under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (the LRHL), the City may convey land to redevelopers for redevelopment purposes without engaging in a public auction process; and
WHEREAS, the City currently owns properties located at 22, 24, 26, 28 and 30 Newark Street and identified on the City tax map as Block 2853, Lots 8, 10, 12, 14 and 16 (the Additional Properties); and
WHEREAS, the School Redeveloper desires to purchase the Additional Properties from the City under the LRHL in order to include them within its charter school project; and
WHEREAS, the Original Properties and the Additional Properties are located within an area governed by a redevelopment plan adopted by the City on October 10, 2008 entitled The Broad Street Station District Redevelopment Plan (the Redevelopment Plan); and
WHEREAS, the School Redeveloper desires to construct a project on the portion of the Original Properties that it is acquiring from VOH and on the Additional Properties (collectively, the Charter School Properties) consisting of an approximately 73,500 square foot educational facility, with science and computer labs, a black box theater, culinary arts learning spaces, dance and performing arts rooms, guidance offices, classrooms, administrative offices, a student fitness center and parking (the Charter School Project); and
WHEREAS, the Family Life Center Redeveloper desires to construct a project on the portion of the Original Properties that it is acquiring from VOH (the Family Life Center Properties) consisting of a community-based family life center providing social services, financial, educational and other support services in accordance with N.J.S.A. 40A:12-21(k) and housing for low or moderate income persons in accordance with N.J.S.A. 40A:12-21(l) along with limited commercial uses consistent with the stated non-profit purposes of the Family Life Center Redeveloper and incidental to the project as a whole (collectively, the Family Life Center Project); and
WHEREAS, the City believes that the Charter School Project and the Family Life Center Project (collectively, the Projects) are consistent with the Redevelopment Plan and are in the best interest of the City and of the Central Ward and that they promote the health, safety, morals and welfare of the City's residents; and
WHEREAS, the City has also determined that the School Redeveloper and the Family Life Center Redeveloper possess the proper qualifications, financial resources and capacity to implement and complete the Projects; and
WHEREAS, in order to implement the purchase and sale of the Additional Properties and the development, financing, construction, operation and management of the Charter School Project and the Family Life Center Project, the City has determined that it is appropriate to enter into a new redevelopment agreement with VOH, the School Redeveloper, and the Family Life Center Redeveloper (the 2013 Redevelopment Agreement), which shall replace and supersede the 2002 Redevelopment Agreement, setting forth the terms and conditions of the purchase and sale of the Additional Properties, designating the School Redeveloper as the redeveloper of the Charter School Project and the Family Life Center Redeveloper as the redeveloper of the Family Life Center Project, and specifying the respective rights and responsibilities of the City, the Redevelopers and VOH with respect to the Charter School Project and the Family Life Center Project; and
WHEREAS, the City also wishes to authorize the filing of an amended deed as to the Original Properties in order to amend the deed restrictions on the Original Properties to reflect the amended scope of the redevelopment project as set forth within the 2013 Redevelopment Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Municipal Council of the City of Newark hereby authorizes the Mayor and the Deputy Mayor/Director of the Department of Economic and Housing of the City of Newark to execute the Redevelopment and Property Disposition Agreement (the 2013 Redevelopment Agreement) between the City, Vision of Hope Community Development Corporation (VOH), The Friends of Marion P. Thomas Charter School, Inc. (the School Redeveloper), and New Hope Now Community Development Corporation (the Family Life Center Redeveloper) in the form attached hereto.
2. The Municipal Council of the City of Newark hereby authorizes the Deputy Mayor/Director of the Department of Economic and Housing Development to execute an amended deed, in a form approved by Corporation Counsel, as to the properties located at 103-109 Sussex Avenue, 121-133 Sussex Avenue, 32-42 Newark Street, and 36-48 Nesbitt Street and identified on the City's official tax map as Block 2853, Lots 1, 3, 4, 37, 44, 62, 74, 78 and 79 previously sold by the City to VOH (the Original Properties) in order to amend the deed restrictions on the Original Properties to reflect the amended scope of the redevelopment project as set forth within the 2013 Redevelopment Agreement.
3. The Municipal Council of the City of Newark hereby authorizes the sale of the City-owned properties located at 22, 24, 26, 28 and 30 Newark Street and identified on the City's tax map as Block 2853, Lots 8, 10, 12, 14 and 16 (the Additional Properties) to the School Redeveloper for a purchase price of $75,000.00 (based upon a price of $4.00 per square foot) subject to the terms and conditions as set forth more fully within 2013 Redevelopment Agreement. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a deed for the conveyance of the Additional Properties to the School Redeveloper.
4. The Director of Finance is hereby authorized to receive the proceeds of the sale of the Additional Properties and to deposit such sale proceeds into the City's land sales trust account 026 BS 4627.
5. The Municipal Council further authorizes the School Redeveloper to assign its rights with regard to the Charter School Project to an affiliated special purpose non-profit entity created and controlled by the School Redeveloper for financing purposes, in accordance with the procedures set forth within the 2013 Redevelopment Agreement.
6. The 2013 Redevelopment Agreement, the amended deed for the Original Properties, and the deed for the Additional Properties, once fully executed, shall all be filed with the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
7. This Ordinance shall take effect in accordance with the laws of the State of New Jersey after final passage and publication.
STATEMENT
Ordinance authorizing the Mayor and the Deputy Mayor/Director of the Department of Economic and Housing Development of the City of Newark to execute a Redevelopment and Property Disposition Agreement (the 2013 Redevelopment Agreement) between the City, Vision of Hope Community Development Corporation, The Friends of Marion P. Thomas Charter School, Inc., and New Hope Now Community Development Corporation in order to replace and supersede a 2002 Redevelopment Agreement governing the redevelopment of the properties located at 103-109 Sussex Avenue, 121-133 Sussex Avenue, 32-42 Newark Street, and 36-48 Nesbitt Street and identified on the City's official tax map as Block 2853, Lots 1, 3, 4, 37, 44, 62, 74, 78 and 79 and to authorize The Friends of Marion P. Thomas Charter School, Inc. to develop a charter school project on Block 2853, Lots 1, 3, 4, 37, 74, 78, 79 and a portion of Lot 44,, to authorize New Hope Now Community Development Corporation to construct a family life center project on Block 2853, Lot 62 and a portion of Lot 44, and to authorize the sale of certain City-owned properties located at 22, 24, 26, 28 and 30 Newark Street and identified on the City tax map as Block 2853, Lots 8, 10, 12, 14 and 16 to The Friends of Marion P. Thomas Charter School, Inc. for a purchase price of $75,000.00 (based upon a price of $4.00 per square foot) for inclusion in the charter school project.