Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Public Real Estate Auction
Purpose: To accept bids and execute Quitclaim Deeds for properties sold at Public Auction on Thursday, August 27, 2020.
Date of Auction: Thursday, August 27, 2020
Location of Auction: Realauction.com
Cost Basis: ( ) PSF ( ) Negotiated ( ) N/A (X) Other:
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
(X) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
List of Property: Refer to Exhibit A
Additional Information:
Total Sale Amount: $7,361,100.00
Total Earnest Money Deposit as per Exhibit A: $1,348,885.00
1/4 Annual Property Tax held in escrow as a refundable deposit to insure Conditions of Sale compliance.
body
WHEREAS, on August 11, 2020, the Municipal Council adopted Resolution 7R2-h(S) authorizing the sale of City-owned properties, not needed for governmental purposes, by open public auction pursuant to the terms enumerated in the Standard Conditions of Sale attached to Resolution 7R2-h(S) as Exhibit B; and
WHEREAS, on August 27, 2020, the Department of Economic and Housing Development conducted a public real estate auction for the sale of City-owned properties as shown on the attached Exhibit A, pursuant to N.J.S.A. 40A:12-13(a); and
WHEREAS, this resolution seeks to accept or reject the bids received on August 27, 2020, pursuant to N.J.S.A. 40A:12-13(a).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City of Newark hereby accepts the offers to purchase the properties shown on the attached Exhibit A for the total amount of Seven Million Three Hundred Sixty-One Thousand One Hundred Dollars and Zero Cents ($7,361,100.00), the sale of which were authorized at an open public auction held on Thursday, August 27, 2020, through Resolution 7R2-h (S), adopted August 11, 2020, and duly published in the Star Ledger on August 14, 2020 and August 20, 2020, pursuant to N.J.S.A. 40A:12-13(a).
2. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate the sale of the properties shown on the attached Exhibit A to the successful bidders, permitting non-material changes to correct typographical errors, through a Quitclaim Deed, subject to the Standard Conditions of Sale set forth in Exhibit B attached hereto and made a part hereof, as authorized by Resolution 7R2-h(S), adopted on August 11, 2020.
3. The Quitclaim Deed and all documents pertaining to the sale of the properties shown on the attached Exhibit A shall be approved as to form by the City's Corporation Counsel to be attested and acknowledged by the City Clerk.
4. The Director of the Department of Finance is hereby authorized to receive proceeds of 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 (026 BS 3210) established under City Resolution 7Rg adopted on November 6, 1985; and the remaining ten percent (10%) of the sale proceeds shall be placed in the City's Affordable Housing Trust Fund (026 BS 3035) established under City Ordinance 6S&Ff adopted on June 21, 2006, for the purpose of preserving low and moderate income affordable housing.
STATEMENT
This resolution authorizes the City of Newark to accept the offers to purchase properties sold at Public Auction on Thursday, August 27, 2020, and to authorize the Deputy Mayor/Director of the Department of Economic and Housing Development to effectuate the sale of the properties shown on the attached Exhibit A through a Quitclaim Deed, subject to the Standard Conditions of Sale set forth in Exhibit B attached to Resolution 7R2-h(S), adopted on August 11, 2020.
.