Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: Rehabilitate the properties as affordable rental or for-sale housing
Entity Name: Urban Rehab Projects, LLC
Entity Address: 21-23 Beverly Street, Newark, New Jersey 07108
Sale Amount: $42,220.00
Cost Basis: (X) $4.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $194,200.00
Appraised Amount: $0.00
Contract Period: To be commenced within three (3) months and be completed within twelve (12) 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)
87 Goodwin Avenue/Block 3620/Lot 12/South Ward
89-91 Goodwin Avenue/Block 3620/Lot 13/South Ward
79-81 Chelsea Avenue/Block 4214/Lot 59/West Ward
Additional Information:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
87 Goodwin Avenue South 3620 12 30.3X125 3,787.5
89-91 Goodwin Avenue South 3620 13 29.1X125 3,637.5
79-81 Chelsea Avenue West 4214 59 31.3X100 3,130.0
Total Square Footage: 10,555
Total Purchase Price: $42,220.00 ($4.00 per sq. ft.); and
Sale at prices set forth by Ordinance 6S&Fh, adopted on April 7, 2004, establishing the minimum sale price of City-owned Properties.
body
WHEREAS, the purpose of this resolution is to approve the sale and rehabilitation of the following City-owned properties located in the South Ward and West Ward of the City of Newark (the “City”):
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
87 Goodwin Avenue South 3620 12 30.3X125 3,787.5
89-91 Goodwin Avenue South 3620 13 29.1X125 3,637.5
79-81 Chelsea Avenue West 4214 59 31.3X100 3,130.0
Total Square Footage: 10,555.
Total Purchase Price: $42,220.00 ($4.00 per sq. ft.); and
WHEREAS, the City has determined that the above referenced City-owned properties (the “Property”) is no longer needed for public use; and
WHEREAS, pursuant to N.J.S.A. 40A:12A-8(g), the City is proceeding with the rehabilitation 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 7Rdo(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&Fd(S) on August 17, 2005, adopting the Third Amendment to the South Ward and Ordinance 6S&Fc(S), adopting the Second Amendment to the West Ward Redevelopment Plans governing the redevelopment of City-owned Properties located within the South Ward and West Ward, which includes the above-referenced Properties; and
WHEREAS, the City received a letter of intent for the purchase and rehabilitation of the Properties from the owner of the attached properties, Urban Rehab Projects, LLC, 21-23 Beverly Street, Newark, New Jersey 07108 (the “Redeveloper”); and
WHEREAS, the Redeveloper has proposed to the City’s Department of Economic and Housing Development to rehabilitate the Properties as affordable rental or for-sale housing (the “Proposal”); and
WHEREAS, based upon the City’s review of the request and other such information, the City has determined that the Redeveloper possesses the proper qualifications and requisite financial resources and capacity to acquire the Properties and to rehabilitate them in accordance with the requirements of N.J.S.A. 40A:12A-8(g), and meet the terms and conditions of the Agreement for the Sale and Redevelopment of Land, (the “Agreement”) (a copy is attached hereto), and the South Ward and West Ward Redevelopment Plans, as amended; and
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development has recommended that the City sell the Properties to Urban Rehab Projects, LLC, whom is willing to purchase the Properties from the City, in the amount of Forty-Two Thousand Two Hundred Twenty Dollars and Zero Cents ($42,220.00), for the purpose of rehabilitating said Properties in accordance with the requirements of N.J.S.A. 40A:12A-8(g), the Agreement, and the South Ward and West Ward Redevelopment Plans, 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 Acting Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute the Agreement for the Sale and Redevelopment of Land with Urban Rehab Projects, LLC, 21-23 Beverly Street, Newark, New Jersey 07108, for the private sale and rehabilitation of the following Properties, 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 South Ward and West Ward Redevelopment Plans, as amended:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
87 Goodwin Avenue South 3620 12 30.3X125 3,787.5
89-91 Goodwin Avenue South 3620 13 29.1X125 3,637.5
79-81 Chelsea Avenue West 4214 59 31.3X100 3,130.0
Total Square Footage: 10,555.
Total Purchase Price: $42,220.00 ($4.00 per sq. ft.)
2. Said Properties shall be sold to Urban Rehab Projects, LLC, by private sale for the purpose of rehabilitating the abovementioned Properties as affordable rental or for-sale housing.
3. The Acting Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the Redevelopment Agreement 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 Properties and the terms and conditions of the Agreement, all in forms subject to the approval of the CityCorporation Counsel.
4. The Acting 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 by the Acting Director of the Department of Economic and Housing Development and subject to the approval of the City’s Corporation Counsel.
5. The Redeveloper shall be designated as the exclusive redeveloper of the Properties and any other prior legislation authorizing or intended to authorize the sale and/or redevelopment and/or rehabilitation of the Properties are 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 Acting 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 percent (90%) of the sale proceeds shall be deposited into the Community and Economic Development Dedicated Trust Fund established under Resolution 7Rg, adopted on November 6, 1985; and ten percent (10%) of the sale proceeds shall be placed in the City’s Affordable Housing Trust Fund established under City Ordinance 6PS&Ff, adopted on June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
8. The Acting Director of the Department of Economic and Housing Development shall place a copy of the executed Agreement for the Sale and Redevelopment of Land, 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, adopted on April 5, 1995; the City of Newark’s Affirmative Action Plan 7Rbp, adopted on 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 6S&Fc, adopted on 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, (the “First Source Ordinance”) (a copy of which is attached to the Agreement), all as may be applicable. In addition, the Redeveloper has agreed to ensure that thirty percent (30%) of all contractors, subcontractors and suppliers shall be Newark-based companies.
10. The rehabilitation of the Properties shall be commenced within three (3) months and be completed within twelve (12) months from the transfer of ownership of the Properties 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 rehabilitation of the Properties, then the City, in its sole discretion, may exercise its Right of Reverter to transfer title to the Properties back to the City, in accordance with the terms and conditions of the Agreement and the Deed.
12. The Acting Director of the Department of Economic and Housing Development is hereby authorized to execute a Quitclaim Deed to the Redeveloper for the Properties. Said Quitclaim Deed conveying title to the Properties 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 hereby authorizes the Mayor and/or his designee and the Acting Director of the Department of Economic and Housing Development to enter into and execute an Agreement for the Sale and Redevelopment of Land of Urban Rehab Projects, LLC, 21-23 Beverly Street, Newark, New Jersey 07108, for the private sale and rehabilitation of the following Properties, 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 and Redevelopment of Land, and the South Ward and West Ward Redevelopment Plans, as amended to rehabilitate the Properties as affordable rental or for-sale housing:
ADDRESS WARD BLOCK LOT SIZE SQ. FEET
87 Goodwin Avenue South 3620 12 30.3X125 3,787.5
89-91 Goodwin Avenue South 3620 13 29.1X125 3,637.5
79-81 Chelsea Avenue West 4214 59 31.3X100 3,130.0
Total Square Footage: 10,555
Total Purchase Price: $42,220.00 ($4.00 per sq. ft.)