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Home My Public Portal Aboutr 11-051Purlution of the Porvg4 of &rter d, J Nol -51 Platmh 3 2 ()]] � RESOLUTION OF THE BOROUGH OF CARTERET CONDITIONALLY DESIGNATING A REDEVELOPER FOR THE PROPERTY KNOWN AS TAX BLOCK 220, LOTS 2 AND 3 LOCATED WITHIN THE WASHINGTON AVENUE REDEVELOPMENT AREA AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PRE- DEVELOPTNIENT AGREEMENT WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A -1 et seq., as amended and supplemented (the "Redevelopment Law"), provides a process for municipalities to participate in the redevelopment and improvement of areas in need of redevelopment; and WHEREAS, in accordance with the Redevelopment Law, the Borough of Carteret (the `Borough ") declared sixty -four properties within Blocks 149, 186, 212, 213, 214, 215, 206, 208, 219, 220, 221 as an area in need of redevelopment (collectively, the "Redevelopment Area "); and - WHEREAS, the Borough adopted a redevelopment plan for the Redevelopment Area (the `Redevelopment Plan "), which shall control the redevelopment of the Redevelopment Area; and WHEREAS, the Borough desires to engage in preliminary negotiations with Drs. Singh and Goraya (the "Company, ), in furtherance of entering into a formal redevelopment agreement for the redevelopment of that portion of the Redevelopment Area consisting of Block 220, Lots 2 and 3 (the "Project Area "); and WHEREAS, the Borough desires to enter into that certain Pre - Development Agreement with the Company (attached hereto as Exhibit A in substantially final form) to establish an escrow fund with the Borough to provide for the payment of the Borough's professional fees, costs and expenses related to the Redevelopment Area and the negotiation and execution of a redevelopment agreement and matters related thereto; and NOW, THEREFORE, BE IT RESOLVED as follows: Section 1. Upon receipt of the additional financial, administrative, technical and project related data and information as requested by the Borough, the Company shall be conditionally designated as the redeveloper for the Project Area for an initial period of ninety (90) days, or as otherwise may be extended in accordance with Section 2 hereof, during which time negotiation and execution of a redevelopment agreement with the Borough shall be completed. Section 2. The Nlayor, Chief Financial Officer, or Director of Law (each an "Authorized Officer ") are hereby each severally authorized, after consultation with such counsel and any advisors to the Borough (collectively, the "Borough Consultants'), as such Authorized Officer deems necessary, desirable or convenient, in Stich Authorized Officer's sole discretion, to extend the time period set forth in Section 1 hereof, but in no event shall such additional period exceed ainety (90) days beyond the time period set forth in Section I hereof. No. 11 -51 PAGE_ Section 3. In the event that the Company has not executed a redevelopment agreement or such other similar agreement with the Borough for the redevelopment of the Project Area, all in accordance with the time periods set forth in Section I hereof, or as otherwise may be extended by an Authorized Officer, in such Authorized Officer's sole discretion, in accordance with Section 2 hereof, the Borough's conditional designation of the Company as redeveloper for the Project Area shall expire and be of no further force and effect and the Borough shall have no further obligation to the Company. Section 4. The Pre - Development Agreement is hereby authorized to be executed and delivered on behalf of the Borough by an Authorized Officer in substantially the form attached hereto as Exhibit A , with such changes as such Authorized Officer, after consultation with the Borough Consultants, deems necessary, desirable or convenient in such Authorized Officer's sole discretion. Section 5. The Borough Clerk, or the Deputy Borough Clerk, is hereby authorized and directed, upon the execution of the Pre - Development Agreement in accordance with the terms of Section 4 hereof, to attest to the Authorized Officer's execution of the Pre - Development Agreement and is hereby further authorized and directed to thereupon affix the seal of the Borough to the Pre - Development Agreement. Section 6. Upon the execution and attestation of and if required, the placing of the seal of the Borough on the Pre - Development Agreement as contemplated by Sections 4 and 5 hereof, the Authorized Officer is hereby authorized and directed to (a) deliver such fidly executed, attested and sealed Pre - Development Agreement to the Company and (b) perform such other actions as the Authorized Officer deems necessary, desirable or convenient in relation to the execution and delivery thereof. Section 7. All actions of the Authorized Officers and the Borough Consultants taken prior to the date of adoption hereof in connection with the Redevelopment Area, including without lirnitation, the Pre - Development Agreement, are hereby ratified and approved. Section 8. This resolution shall take effect at the time and in the mariner prescribed by law. Section 9. Upon the adoption hereof, the Borough Clerk shall forward certified copies of this resolution to Matthew C. Karrenberg, Esq., DeCotiis, FitzPatrick & Cole, LLP, Special Redevelopment Counsel to the Borough. Adopted this 3rd day of Marna, 2011 atd certified as a twe copy of the original on March 4, 2011. KYffUF N M. BARW !` Mc M- nicipal Clerk RECORD OF COUNCIL VOTE COUNCILXIA\ I YES NO NV A.B. COUNCILMAN YES NO NV A.B. PA um X X DW DDASCIO STTARZ X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overmle Vein Adopted at it meeting of the Municipal Council March 3 2011, - .!� CLERK EXHIBIT A FORM OF PRE - DEVELOPMENT AGREEMENT PRE - DEVELOPMENT AGREEMENT (the "Pre - Development Agreement "), dated as of _, 2011, by and between: THE BOROUGH OF CARTERET a municipal corporation of the State of New Jersey with offices at Carteret Borough Hall, 61 Cooke Avenue, Carteret, New Jersey 07008 and its successors and assigns (the "Borough "), and [NAME OF COMPANY], with offices at and its successors and assigns (the "Company" and together with the Borough, the "Parties "). W- I- T- N- E- S- S- E -T -H: WHEREAS, the Borough Council has adopted an ordinance approving and adopting the Washington Avenue Redevelopment Plan (the "Redevelopment Plan ") in accordance with the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A -1 et seq. (the "Act "); and WHEREAS, the Redevelopment Plan relates to sixty -four properties within Blocks 149, 186, 212, 213, 214, 215, 206, 208, 219, 220, 221 within the Borough (collectively the "Redevelopment Area "); and WHEREAS, the Borough desires to engage in preliminary negotiations with the Company in furtherance of entering into a formal redevelopment agreement for the redevelopment of that portion of the Redevelopment Area consisting of Block 220, Lots 2 and 3 (the "Project Area ") for use by the Company as medical arts building; and WHEREAS, the Parties have determined to establish an escrow fund with the Borough to provide for the payment of the Borough's professional fees, costs and expenses related to the Project Area and the negotiation and execution of a redevelopment agreement and matters related thereto ( "Interim Costs "); and NOW, THEREFORE, for and in consideration of the mutual promises, representations, covenants and agreements contained herein and the undertakings of each Party to the other and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby and to bind its successors and assigns, do mutually promise, covenant and agree as follows: Payment of Interim Costs a. Irmnediately upon the execution of this Pre - Development Agreement, the Company shall deposit with the Borough fifteen thousand dollars ($15,000), which the Borough shall deposit into a non - interest bearing escrow account established by it for the payment of its Interim Costs. Prior to the Borough's withdrawal of funds from the escrow for the payment of its Interim Costs, the Borough shall provide the Company with a copy of each invoice reflecting Interim Costs to be paid. Each invoice shall specifically state the professional services rendered, the date of the services, the time spent by the professional in rendering such services and the professional who rendered such services. All rates charged by such professionals shall be the rates that it charges the Borough for its services. Unless the Company promptly (within 15 days of its receipt of any such copy) provides a written objection that any invoiced item is not an Interim Cost, the Borough shall be free to withdraw funds from the escrow for the payment of such invoiced services. If, when and as often as may occur that the escrow account is drawn down to or below two thousand five hundred dollars ($2,500), then the Company, upon the Borough's request, shall irmnediately provide to the Borough for deposit such additional funds as are necessary to increase the balance in the escrow account to five thousand dollars ($5,000) for use in accordance with these terms. In the event that this Pre - Development Agreement either expires or is cancelled by the Borough or the Company, then all escrowed monies shall be returned to the Company following the payment from the escrow account of the Borough's Interim Costs incurred up to the time of said expiration or cancellation. b. Interim Costs, for the purposes of this Pre - Development Agreement shall include, without limitation, the Borough's reasonably incurred out -of- pocket fees, costs and expenses related to the negotiation of the terms and conditions of a redevelopment agreement, purchase and sale agreement and other documents and actions related to the Project Area including, but not limited to, fees for legal, planning and financial advisory services, including all such fees, costs and expenses incurred prior to the execution of this Pre - Development Agreement. 2. Additional Provisions a. This Pre - Development Agreement shall terminate upon the earlier of (i) the expiration of the Company's designation as redeveloper; (ii) approval and full execution of a redevelopment agreement by the parties, or (iii) the determination by the Company or the Borough, by written notice to the other, that a redevelopment agreement cannot be executed for any reason. b. The Parties hereby expressly acknowledge that the execution of this Pre - Development Agreement and the performance of the Parties hereunder, shall in no way be interpreted to constitute a "Redevelopment Agreement" for purposes of the Act or other applicable law. Nothing contained in this Pre- Development Agreement shall constitute a waiver, surrender or relinquislunent of any and all rights the Borough may have in accordance with applicable law, including, without limitation, the Act, with respect to the Redevelopment Plan, the Redevelopment Area, the Project Area, the negotiation of a Redevelopment Agreement, or any matters related thereto. C. If any term or provision of this Pre - Development Agreement shall to any extent or for any reason be held invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision of this Pre - Development Agreement, but the remainder of this Pre - Development Agreement and each term and provision of this Pre- Development Agreement shall be valid and enforceable to the fullest extent permitted by law, subject to such modification hereof as may be necessitated by such invalidity. d. This Pre - Development Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New Jersey, without regard to principles of conflicts of law. C. Any notice provided to the Borough hereunder shall be submitted in writing to: Kathleen M. Barney, Borough Clerk Robert J. Bergen, Esq., Director of Law Municipal Building 61 Cooke Avenue Carteret, New Jersey 07008 Notices to the Company shall be submitted in writing to: [Name & Address of Company] Attn: and with copies to: John V. Iacona, Esq. Xu & Iacona, P.C. 244 Bridge Street Metuchen, New Jersey 08840 f. This Pre - Development Agreement may be executed in counterparts, each of which shall be deemed an original. [no finther text on this page — signature page follows] IN WITNESS WHEREOF, the Parties hereto have caused this Pre - Development Agreement to be executed, all as of the date first above written. ATTEST: Kathleen M. Barney, Borough Clerk [SEAL] BOROUGH OF CARTERET Hon. Daniel J. Reiman, Mayor ATTEST: [NAME OF COMPANY] NW