Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Private Sale/Redevelopment
Purpose: To construct a Five-Story Mixed Use Development with parking and ground floor retail spaces.
Entity Name: 269 Springfield Avenue, LLC
Entity Address: 500 Avenue P, Newark, New Jersey 07105
Sale Amount: $164,107.20
Cost Basis: (X) $4.00 PSF ( ) Negotiated ( ) N/A ( ) Other:
Assessed Amount: $981,200.00
Appraised Amount: $0.00
Contract Period: To commence 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)
285 Springfield Avenue/Block 2518/Lot 1/Central Ward
283 Springfield Avenue/Block 2518/Lot 2/Central Ward
281 Springfield Avenue/Block 2518/Lot 3/Central Ward
279 Springfield Avenue/Block 2518/Lot 4/Central Ward
277 Springfield Avenue/Block 2518/Lot 5/Central Ward
275 Springfield Avenue/Block 2518/Lot 6/Central Ward
269-273 Springfield Avenue/Block 2518/Lot 7/Central Ward
11-13 Boyd Street/Block 2518/Lot 11/Central Ward
5 Sayre Street/Block 2518/Lot 43/Central Ward
7-9 Boyd Street/Block 2518/Lot 61/Central Ward
14 Boyd Street/Block 2519/Lot 47/Central Ward
12 Boyd Street/Block 2519/Lot 48/Central Ward
8-10 Boyd Street/Block 2519/Lots 49 and 50/Central Ward
6 Boyd Street/Block 2519/Lot 51/Central Ward
265-267 Springfield Avenue/Block 2519/Lots 52 and 53/Central Ward
261-261 ½ Springfield Avenue/Block 2519/Lot 56/Central Ward
Additional Information:
Sale Price: Total Square Footage x PSF = 41,026.8 X $4.00 = $164,107.20
Sale at prices set forth by Ordinance 6S&Fh, adopted on April 7, 2004, establishing the minimum sale price of City-owned properties.
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WHEREAS, the purpose of this resolution to approve the sale and redevelopment of the following City-owned Properties located in the Central Ward of the City of Newark:
ADDRESS BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue 2518 1 25X63 1,575
283 Springfield Avenue 2518 2 25X100 2,500
281 Springfield Avenue 2518 3 25X100 2,500
279 Springfield Avenue 2518 4 25X100 2,500
277 Springfield Avenue 2518 5 25X100 2,500
275 Springfield Avenue 2518 6 25X100 2,500
269-273 Springfield Avenue 2518 7 86.1X55 4,735.5
11-13 Boyd Street 2518 11 39.4X17.5 689.5
5 Sayre Street 2518 43 26.5X68 1,802
7-9 Boyd Street 2518 61 36X39 1,404
14 Boyd Street 2519 47 25X100 2,500
12 Boyd Street 2519 48 25X100 2,500
8-10 Boyd Street 2519 49, 50 50X100 5,000
6 Boyd Street 2519 51 25X100 2,500
265-267 Springfield Avenue 2519 52, 53 41.2X45 1,854
261-261 ½ Springfield Avenue 2519 56 47X84.4 3,966.8
Purchase Price: $164,107.20 ($4.00 per sf.); and
WHEREAS, the City of Newark has determined that the above referenced City-owned Properties (the “Properties”) are 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 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&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 Properties; and
WHEREAS, the City received a letter of intent, attached as Exhibit A of the Redevelopment Agreement (“Proposal”), for the purchase and construction of the Property from 269 Springfield Avenue, LLC, 500 Avenue P, Newark, New Jersey 07105 (the “Redeveloper”); and
WHEREAS, the Redeveloper has proposed to the City’s Department of Economic and Housing Development to utilize the property for the development of a five-story mixed use development with parking and ground floor retail spaces; and
WHEREAS, based upon the City’s review of the Proposal 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 develop 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 and Redevelopment of Land, the form of which is attached hereto (the “Agreement”), and the Central Ward Redevelopment Plan, as amended; and
WHEREAS, pursuant to the above-mentioned statutory authority, the Department of Economic and Housing Development recommends that the City of Newark sell the Properties to 269 Springfield Avenue, LLC, which is willing to purchase the Properties from the City, for the consideration of One Hundred and Sixty-Four Thousand, One Hundred Seven Dollars and Twenty Cents ($164,107.20), 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 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 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 attached hereto with 269 Springfield Avenue, LLC, 500 Avenue P, Newark, New Jersey 07105, for the private sale and construction 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 Central Ward Redevelopment Plan, as amended:
ADDRESS BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue 2518 1 25X63 1,575
283 Springfield Avenue 2518 2 25X100 2,500
281 Springfield Avenue 2518 3 25X100 2,500
279 Springfield Avenue 2518 4 25X100 2,500
277 Springfield Avenue 2518 5 25X100 2,500
275 Springfield Avenue 2518 6 25X100 2,500
269-273 Springfield Avenue 2518 7 86.1X55 4,735.5
11-13 Boyd Street 2518 11 39.4X17.5 689.5
5 Sayre Street 2518 43 26.5X68 1,802
7-9 Boyd Street 2518 61 36X39 1,404
14 Boyd Street 2519 47 25X100 2,500
12 Boyd Street 2519 48 25X100 2,500
8-10 Boyd Street 2519 49-50 50X100 5,000
6 Boyd Street 2519 51 25X100 2,500
265-267 Springfield Avenue 2519 52-53 41.2X45 1,854
261-261 ½ Springfield Avenue 2519 56 47X84.4 3,966.8
Purchase Price: $164,107.20 ($4.00 per sf.)
2. Said Property shall be sold to 269 Springfield Avenue, LLC, by private sale for the purpose of constructing the above-mentioned Properties for the development of a five-story mixed use development with parking and ground floor retail spaces.
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 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 Properties and the terms and conditions of the Agreement, all in forms subject to the approval of the City of Newark’s Corporation 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 of the City of Newark by the Acting Director of the Department of Economic and Housing Development and the approval of the City of Newark’s 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 and/or construction 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 Acting Director of the Department of Economic and Housing Development agrees in writing to extend this thirty (30) day time period.
7. The Acting 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, 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 6S&Ff, 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 comply with the City of Newark’s Minority Set-Aside Ordinance 6S&Fd, April 5, 1995; the City of Newark’s Affirmative Action Plan, 7Rbp, 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 as Exhibit C (the “First Source Ordinance”), all as may be applicable. The Redeveloper shall provide the Department of Economic and Housing Development with the required forms showing compliance with the above, and a copy of these forms shall be filed with the City Clerk. 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 development of the Properties shall commence within three (3) months and be completed within twenty-four (24) 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 redevelopment 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 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 with 269 Springfield Avenue, LLC, 500 Avenue P, Newark, New Jersey 07105, for the private sale and redevelopment 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 Central Ward Redevelopment Plan, as amended, to construct a five-story mixed use development with parking and ground floor retail spaces:
ADDRESS BLOCK LOT SIZE SQ. FEET
285 Springfield Avenue 2518 1 25X63 1,575
283 Springfield Avenue 2518 2 25X100 2,500
281 Springfield Avenue 2518 3 25X100 2,500
279 Springfield Avenue 2518 4 25X100 2,500
277 Springfield Avenue 2518 5 25X100 2,500
275 Springfield Avenue 2518 6 25X100 2,500
269-273 Springfield Avenue 2518 7 86.1X55 4,735.5
11-13 Boyd Street 2518 11 39.4X17.5 689.5
5 Sayre Street 2518 43 26.5X68 1,802
7-9 Boyd Street 2518 61 36X39 1,404
14 Boyd Street 2519 47 25X100 2,500
12 Boyd Street 2519 48 25X100 2,500
8-10 Boyd Street 2519 49-50 50X100 5,000
6 Boyd Street 2519 51 25X100 2,500
265-267 Springfield Avenue 2519 52-53 41.2X45 1,854
261-261 ½ Springfield Avenue 2519 56 47X84.4 3,966.8
Purchase Price: $164,107.20 ($4.00 per sf.).