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ORDINANCE AMENDING ORDINANCE 6PSF-C, ADOPTED JANUARY 5, 2017, AUTHORIZING THE MAYOR, AND/OR HIS DESIGNEE, THE ACTING DIRECTOR OF THE DEPARTMENT OF ECONOMIC AND HOUSING DEVELOPMENT TO ENTER INTO AN AMENDED AGREEMENT FOR THE CONVEYANCE OF REAL PROPERTY WITH THE NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY (“NJSDA”) MODIFYING FEES TO BE PAID BY THE CITY FOR THE RELEASE OF CERTAIN RESTRICTIONS.
(PUBLIC HEARING NOTICE FOR FEBRUARY 14, 2018)
Deferred 6PSF-c 020718
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WHEREAS, by Ordinance 6PSF-c, adopted January 5, 2017, the Municipal Council of the City of Newark authorized the Mayor and/or his designee, the Acting Director of the Department of Economic and Housing Development to enter into a Conveyance Agreement with the New Jersey Schools Development Authority (“NJSDA”) for the conveyance of real property by NJSDA to the City (the “Agreement”); and
WHEREAS, the Agreement was executed on March 23, 2017; and
WHEREAS, the Agreement provides for the transfer of the following parcels of real property owned by NJSDA to the City, subject to certain terms and restrictions:
Address Block Lot Ward Size Sq. Feet
339-341 S. 11th Avenue 1784 10 West 30x100 3,000
345 S. 11th Street 1784 13 West 30x100 3,000
375 S. 11th Street 1784 28 West 30x100 3,000
381-395 South Orange Ave 1784 35 West 20,089
376 S. 12th Street 1784 44 West 30x77 2,310
372-374 S. 12th Street 1784 45 West 30x100 3,000
354 S. 12th Street 1784 55 West 43.5x100 4,350
350-352 S. 12th Street 1784 57 West 43.5x100 4,350
348 S. 12th Street 1784 58 West 25x100 2,500
338 S.12th Street 1784 63 West 28x100 2,800
317-319 S. 12th Street 1785 1 West 42.7x100 4,270
321-323 S. 12th Street 1785 2 West 56x100 5,600
325 S. 12th Street 1785 4 West 28x100 2,800
327 S. 12th Street 1785 5 West 28x100 2,800
329 S. 12th Street 1785 6 West 28x100 2,800
331-333 S. 12th Street 1785 7 West 28x100 2,800
335 S. 12th Street 1785 8 West 28x100 2,800
343-345 S. 12th Street 1785 11,12 West 53.6x100 5,360
347 S. 12th Street 1785 13 West 25x100 2,500
349 S. 12th Street 1785 14 West 28x98.11 2,747.08
351 S.12th Street 1785 15 West 28x97.4 2,727.2
353 S. 12th Street 1785 16 West 28x95.11 2,663.08
355 S. 12th Street 1785 17 West 28x94.4 2,643.2
357-359 S. 12th Street 1785 18 West 28x92.10 2,578.8
361 S. 12th Street 1785 20 West 28x91.4 2,559.2
363 S. 12th Street 1785 21 West 28x90 2,520
365 S. 12th Street 1785 22 West 28x88.6 2,480.8
367 S.12th Street 1785 23 West 28x86.9 2,433.2
369 S. 12th Street 1785 24 West 31x84.3 2,613.3
399-401 S. 12th Street 1785 47 West 50.4x95 4,788
397 South Orange Avenue 1785 62 West 25.3x101 2,555.3
375-377 S. 12th Street 1785 63 West 40x81 3,240
371-373 S. 12th Street 1785 64 West 47x83.1 3,905.7
(407,591.78 Total Sq. Ft)
(the “NJSDA Property”); and
WHEREAS, the Agreement provides that the City shall construct and occupy a 5,000 sq. ft. Early Childhood Center (“ECC”), at a cost of no less than One Million Dollars and Zero Cents ($1,000,000.00), to be located on that part of the NJSDA Property identified as Block 1784, Lots 13 and 10 (the “ECC Property”) within five (5) years from the date of execution; and
WHEREAS, the Agreement further provides that all existing improvements on the NJSDA Property be demolished within three (3) years of the date of execution; and
WHEREAS, the Agreement provides for NJSDA to retain a reversionary interest in the NJSDA Property until such time as the construction of the ECC and demolition of the existing improvements are completed, unless the City requests NJSDA to release such interest; and
WHEREAS, the City contemplates entering into agreements with redevelopers for the construction of the ECC, and the rehabilitation or redevelopment of the remainder of the NJSDA Property (the “Conveyance Property”), together with adjacent City-owned parcels; and
WHEREAS, in order to transfer the Conveyance Property for the purpose of redevelopment prior to the completion of construction of the ECC, and demolition of the existing improvements, it may be necessary for the City to request that NJSDA release its reversionary interest in the Conveyance Property; and
WHEREAS, the Agreement provides that NJSDA may release its reversionary interest upon the payment of certain fees (the “Release Fees”) as determined by Exhibit 6 of the Agreement; and
WHEREAS, through negotiations between the City and NJSDA, NJSDA has agreed to amend the Agreement to reduce the Release Fees from a total required by the Agreement of $2,000,000.00 to approximately $1,000,000.00 as more fully set forth on the Revised Exhibit 6 of the Amended Agreement; and
WHEREAS, the City desires to enter into an Amended Agreement for the Conveyance of the NJSDA Property to replace the existing Exhibit 6 with Revised Exhibit 6, reflecting the lower Release Fees.
NOW, THERFORE BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor, and/or his designee, the Acting Director of the Department of Economic and Housing Development are hereby authorized to: (i) execute an Amended Agreement for Conveyance of Real Property modifying the schedule of release fees as reflected on Revised Exhibit 6 to the Amended Agreement.
2. A copy of the fully executed Amended Agreement for Conveyance of Real Property, with all exhibits thereto, shall be placed on file in the Office of the City Clerk by the Acting /Director of the Department of Economic and Housing Development.
3. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance authorizes the Mayor and/or his designee, the Acting Director of the Department of Economic and Housing Development to execute an Amended Agreement for the Conveyance of Real Property, lowering certain fees to be paid by the City for the release of restrictions with the New Jersey Schools Development Authority.