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File #: 16-0651    Version: 1 Name: 114-116 Market St. Rear
Type: Resolution Status: Adopted
File created: 4/7/2016 In control: Economic and Housing Development
On agenda: 7/19/2016 Final action: 7/19/2016
Title: Dept/ Agency: Economic and Housing Development Action: ( ) Ratifying (X) Authorizing ( ) Amending Type of Service: Private Sale/Redevelopment Purpose: Develop a mixed-use residential/commercial building. Entity Name: Davidson, Abraham and Associates, LLC Entity Address: 295 Hudson Avenue, Englewood, New Jersey 07631 Sale Amount: $5,000.00 Cost Basis: ( ) $ PSF (X) Negotiated ( ) N/A ( ) Other: Assessed Amount: $1,586,300.00 Appraised Amount: N/A Contract Period: To be commenced within three (3) months and be completed within twenty-four (24) months from the transfer of ownership by the City. 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) 114-116 Market St. Rear/Block 60/Lot 33.02/Central W...

Title

Dept/ Agency:  Economic and Housing Development

Action:  (   ) Ratifying     (X) Authorizing     (   ) Amending

Type of Service:  Private Sale/Redevelopment

Purpose: Develop a mixed-use residential/commercial building.

Entity Name:  Davidson, Abraham and Associates, LLC

Entity Address:  295 Hudson Avenue, Englewood, New Jersey 07631

Sale Amount: $5,000.00

Cost Basis: (   ) $      PSF   (X) Negotiated   (   ) N/A    (   ) Other:        

Assessed Amount: $1,586,300.00   

Appraised Amount: N/A                         

Contract Period:  To be commenced within three (3) months and be completed within twenty-four (24) months from the transfer of ownership by the City.

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)

 114-116 Market St. Rear/Block 60/Lot 33.02/Central Ward      

Additional Information:

Property to be conveyed for nominal consideration to off-set remediation and demolition costs projected to exceed $2,000,000.00.   

body

 

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                                                                   WARD     BLOCK                       LOT                        SIZE         SQ. FEET       

                     

114-116 Market St. Rear   Central         60        33.02    90.5X153   13,846.5

 

Total Purchase Price: $5,000.00 (nominal); and

                     

 

                     WHEREAS, the City of Newark has determined that the above referenced City-owned property (the “Property”) is no longer needed for public use; and

 

                     WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City of Newark is proceeding with the redevelopment of the area and is conveying properties at such prices and upon such terms as it deems reasonable and said conveyance is made in conjunction with the applicable Redevelopment Plan, as amended; and

 

                     WHEREAS, the Municipal Council previously adopted Resolution 7Rd-o(AS) on June 15, 2005, designating 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”); and

 

                     WHEREAS, the Municipal Council thereafter adopted Ordinance 6S&Fe(S) on August 17, 2005, adopting the First Amendment to the Central Ward Redevelopment Plan governing the redevelopment of City-owned properties located within the Central Ward, which includes the above-referenced Property; and

 

WHEREAS, the City negotiated with Davidson, Abraham and Associates, LLC having an address of 295 Hudson Avenue, Englewood, New Jersey 07631 (the “Redeveloper”), to purchase the Property and develop a mixed-use residential/commercial building; and 

                     

WHEREAS, based upon its negotiations 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 it in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the Agreement for the Sale of Land and Redevelopment, the form of which is attached hereto (the “Agreement”), and the Central Ward Redevelopment Plan, as amended; and

 

WHEREAS, property to be conveyed for nominal consideration to off-set remediation and demolition costs projected to exceed 2 million dollars; and

 

                     WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development has recommended that the City of Newark sell the Property to Davidson, Abraham and Associates, LLC for the sum of Five Thousand Dollars and Zero Cents ($5,000.00) for the purpose of redeveloping said Property in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the Central Ward Redevelopment Plan, as amended.

 

 

NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:

 

1.                     The Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute the Agreement for the Sale of Land and Redevelopment attached hereto (the “Agreement”) with Davidson, Abraham and Associates, LLC, having an address of 295 Hudson Avenue, Englewood, New Jersey 07631, for the private sale and development of the following Property, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Agreement and the Central Ward Redevelopment Plan, as amended:      

 

ADDRESS                                                                   WARD     BLOCK                       LOT                        SIZE         SQ. FEET       

                     

114-116 Market St. Rear   Central         60        33.02    90.5X153   13,846.5

 

Total Purchase Price: $5,000.00 (nominal)

 

2.                     Said property shall be sold to Davidson, Abraham and Associates, LLC, by private sale for the purpose of redeveloping the Property into a mixed-use residential/commercial building.

 

3.                     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 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 sale of the Property and the terms and conditions of the Agreement, all in forms subject to the approval of the City of Newark Corporation Counsel.

 

4.                     The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two (2) six (6) month extensions of any timeframe set forth in the Agreement, subject to full written disclosure of such extension(s) (in the form of a signed memorandum to be submitted to the Office of the City Clerk prior to adoption) to the Municipal Council of the City of Newark by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the City of Newark 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 of the 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 for the Sale and Redevelopment of Land 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 Director of Finance is hereby authorized to receive proceeds of the sale and to deposit same as follows: ninety (90) percent of the sale proceeds shall be deposited into the Redevelopment Acquisition Dedicated Trust Fund established under Resolution 7Rcs(AS) dated April 16, 1986; and ten (10) percent of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6PhS&Ff dated June 21, 2006 for the purpose of preserving low and moderate income affordable housing.

 

8.                     The Deputy Mayor/Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale of Land and Redevelopment, the Quitclaim Deed, and all such other executed agreements authorized by this resolution on file in the Office of the City Clerk.

 

9.                     The Redeveloper shall be required to comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, dated April 5, 1995; the City of Newark’s  Affirmative Action Plan 7Rbp, dated 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 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 (the “First Source Ordinance”), all as may be applicable.  In addition, the Redeveloper has agreed to ensure that 30% of all contractors, subcontractors and suppliers shall be Newark-based companies.

 

10.                     The rehabilitation of the Property shall be commenced within three (3) months and be completed within twenty-four (24) months from the transfer of ownership of the Property by the City to the Redeveloper.

 

11.                     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 Properties as may be necessary.  Should the Redeveloper fail to diligently pursue the redevelopment and/or rehabilitation of the Properties, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Property back to the City, in accordance with the terms and conditions of the Agreement and the deed.

 

12.                     The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Property. Said Quitclaim Deed conveying title to the 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.    

 

 

STATEMENT

 

This Resolution authorizes the Mayor and/or his designee and the Deputy Mayor/Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land with Davidson, Abraham and Associates, LLC, 295 Hudson Avenue, Englewood, New Jersey 07631 for the private sale and redevelopment of the following Property, for the following Purchase Price, in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the terms and conditions of the attached Agreement for the Sale of Land and Redevelopment, and the Central Ward Redevelopment Plan, as amended:

 

ADDRESS                                                                   WARD     BLOCK                       LOT                        SIZE         SQ. FEET       

                     

114-116 Market St. Rear   Central         60        33.02    90.5X153   13,846.5

 

Total Purchase Price: $5,000.00 (nominal)

                     

for the purpose of redeveloping the Property into a mixed-use residential/commercial building.