File #: 16-1734    Version: 1 Name: Transfer of Land to Lafayette Broad, LLC (Lopez)
Type: Ordinance Status: Filed
File created: 11/7/2016 In control: Economic and Housing Development
On agenda: 2/7/2017 Final action: 2/15/2017
Title: AN ORDINANCE TO AMEND ORDINANCE 6PSF-B SEPTEMBER 2, 2015, BY TRANSFERING BLOCK 865, LOT 64, 56 GREEN STREET AND AN ADDITIONAL 20,000 SQUARE FEET OF BLOCK 166, LOT 1.03, 160-176 MULBERRY STREET, AS INDICATED IN THE ATTACHED BORRIE, MCDONALD, & WATSON SURVEY, DATED MAY 5, 2016 TO LAFAYETTE BROAD, LLC., OR ONE OF ITS AFFILIATED REDEVELOPER PROPERTY COMPANIES AT $176.00 PER SQUARE FOOT TOTALING $3,520,000.00
Sponsors: Council of the Whole
Related files: 15-1255

Title

AN ORDINANCE TO AMEND ORDINANCE 6PSF-B SEPTEMBER 2, 2015, BY TRANSFERING BLOCK 865, LOT 64, 56 GREEN STREET  AND AN ADDITIONAL 20,000 SQUARE FEET OF BLOCK 166, LOT 1.03, 160-176 MULBERRY STREET, AS INDICATED IN THE ATTACHED BORRIE, MCDONALD, & WATSON SURVEY, DATED MAY 5, 2016 TO LAFAYETTE BROAD, LLC., OR ONE OF ITS AFFILIATED REDEVELOPER PROPERTY COMPANIES AT $176.00 PER SQUARE FOOT TOTALING $3,520,000.00

 

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WHEREAS, on July 14, 2004, the City of Newark (“City”) utilized the powers of Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., to designate land within the Downtown Newark area as an “area in need of redevelopment,” commonly known as the Newark Downtown Core District Redevelopment Area (“Redevelopment Area”); and

 

WHEREAS, on October 6, 2004, the Municipal Council adopted Ordinance 6S&Ff adopting the Newark Downtown Core District Redevelopment Plan and Amendment to the Newark Plaza Urban Renewal Plan (“Plan”), which has been amended from time to time; and

 

WHEREAS, on October 6, 2004, the Municipal Council adopted Resolution 7Rbc appointing the Housing Authority of the City of Newark (“Authority”) as the City’s Redevelopment Entity for the purpose of implementing the Plan on behalf of the City in accordance with N.J.S.A. 40A:12A-4(c); and

 

WHEREAS, on March 9, 2006, Mulberry Green Realty, LLC and Mulberry Hamilton Associates, LLC (the “Redeveloper Companies”) entered into an agency agreement with Lafayette Broad, LLC to act as the agent for the Redeveloper Companies for the purpose of executing a Redevelopment Agreement with the Authority as the Redevelopment Entity for the Redevelopment Area (the “Agency Agreement”); and 

 

WHEREAS, after the execution of the Agency Agreement, on March 9, 2006, the Authority entered into Redevelopment Agreement with Lafayette Broad, LLC as agent for the Redeveloper Companies (“Initial Redevelopment Agreement”), which was amended on July 7, 2016 (“Amended Redevelopment Agreement”); and

 

WHEREAS, pursuant to the Initial Redevelopment Agreement, the Authority was required to transfer property from Block 166, Lots 1.03 to Mulberry Hamilton Associates, LLC; and

 

WHEREAS, it has been discovered that an additional 20,000 square feet should have been conveyed to Mulberry Hamilton Associates, LLC and the correction was agreed upon in the Amended Redevelopment Agreement, and the correction is identified on the survey by Borrie, McDonald, and Watson of May 5, 2016 attached hereto as Exhibit A; and

 

WHEREAS, the Amended Redevelopment Agreement authorizes the transfer of Block 865, Lot 64 to Mulberry Green Realty, LLC for the weighted average price of $176 per square foot totaling $3,520,000.00; and

 

WHEREAS, N.J.S.A. 40A:12A-4 authorizes the Governing Body to adopt an Ordinance to change or rescind the designation of a redevelopment entity responsible for implementing a redevelopment plan and the new redevelopment entity assume the obligations of the former redevelopment entity with the consent of redevelopers and the former redevelopment entity; and

 

WHEREAS, pursuant to Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. and Local Lands and Buildings Law, N.J.S.A. 40A:12-1 et seq., the City is authorized to convey property in furtherance of its redevelopment projects or public projects; and

 

WHEREAS, on September 2, 2015, the Municipal Council authorized Ordinance 6PSF-b as amended to: (1) de-designate the Authority as the redevelopment entity for the Plan upon the transfer of the Triangle Park Properties to the Authority; and (2) Transfer the Triangle Park Properties from the Authority to the City, of which both actions occurred on July 7, 2016.

 

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

 

                     

Section 1.                     The Mayor or Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute, on the City’s behalf, documents necessary to transfer Block 865, Lot 64 to Mulberry Green Realty, LLC.

Section 2.                      The City hereby authorizes Block 865, Lot 64 to be sold to Mulberry Green Realty, LLC at the price of $176 per square foot totaling $3,520,000.00. 

Section 3.                      The Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development are each hereby authorized to enter into and execute, and the City Clerk and/or Deputy City Clerk is hereby authorized to attest to a Quitclaim Deed(s) for the transfer of Block 865, Lot 64 to Mulberry Green Realty, LLC.  

Section 4.                     The Mayor or Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to execute, on the City’s behalf, documents necessary to transfer an additional 20,000 Square Feet within Block 166, Lot 1.03 to Mulberry Hamilton Associates, LLC as identified on the survey by Borrie, McDonald, and Watson of May 5, 2016 attached hereto as Exhibit A.

Section 5.                      The City hereby authorizes the additional 20,000 Square Feet within Block 166, Lot 1.03 to be sold to Mulberry Hamilton Associates, LLC at the price of $176 per square foot totaling $3,520,000.

Section 6.                      The Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development are each hereby authorized to enter into and execute, and the City Clerk and/or Deputy Clerk is hereby authorized to attest to a Quitclaim Deed(s) for the transfer of the additional 20,000 Square Feet within Block 166, Lot 1.03 to Mulberry Hamilton Associates, LLC.  

Section 4.                      The Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development and the Director of Finance of the City are each hereby authorized to execute and deliver any and all documents and certificates necessary or convenient in connection with the transactions authorized herein, including, without limitation, an affidavit of title, a closing statement and a continuing disclosure agreement.

Section 5.                      This ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.

STATEMENT

 

Authorization for the transfer of Block 865, Lot 64, 56 Green Street, to Mulberry Green Realty, LLC and an additional 20,000 Square Feet within Block 166, Lot 1.03, 160-176 Mulberry Street, to Mulberry Hamilton Associates, LLC totaling $3,520,000.00.