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Home My Public Portal AboutOrd. 21-09No. #21 -9 of fhe Poroug4 of Car #ere#, Councilman Presents the following Ordinance Seconded by Councilman AN ORDINANCE OF THE BOROUGH OF CARTE BET AUTHORIZING THE EXECTION AND DELIVERY OF FINANCIAL AGREEMENTS BY AND BETWEEN THE BOROUGH OF CARTERET AND EACH OF CARTE RE, LOGISTICS URBAN RENEWAL, L.L.C., CARTE RE, LOGISTICS H URBAN RENEWAL, L.L.C., AND CARTE RET LOGISTICS III URBAN RENEWAL, L.L.C. WHEREAS, by Resolution No. 15 -224, duly adopted on November 5, 2015, the Borough of Carteret (the `Borough ") the declared certain properties, including without limitation, Block 602, Lots 1, 7 and 8, Block 603, Lot 1 and Block 705, Lots 3, 4, 17 -19, 21, 30 -32 (as so designated prior to the subdivision described below) (the "Redevelopment Area ") as an "area in need of redevelopment" pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A -1 et seq., as amended and supplemented (the "Redevelopment Law "); and WHEREAS, on February 4, 2016, the Borough adopted Ordinance No. 16 -5 approving and adopting the Salt Meadow Redevelopment Plan in accordance with the Redevelopment Law with respect to the Redevelopment Area; and WHEREAS, on November 20, 2020, the Borough and Carteret Logistics, L.L.0 (the "Redeveloper ") entered in that certain agreement (the "Redevelopment Agreement") governing the redevelopment of a portion of the Redevelopment Area consisting of Block 602, Lot 1, Block 603, Lot I and Block 705, Lot 18, as such real property has been subdivided, for a project consisting of up to three (3) warehouse buildings consisting of no more than approximately 1,169,420 square feet of building footprint, along with approximately 533 car parking spaces, 299 trailer parking spaces, 174 truck bays, appropriate fencing, screening and landscape improvements (the "Project"); and WHEREAS, the Redevelopment Agreement allows for the Project to be undertaken in one or more Phases (as such term is defined in the Redevelopment Agreement); and WHEREAS, the Redeveloper will transfer Block 705, Lot 1.01 (the "Phase 1 Area ") to Carteret Logistics Urban Renewal, L.L.C. (the "Phase 1 Entity") for purposes of undertaking and constructing a building with a footprint of approximately 479,700 square footage, along with approximately 223 car parking spaces, 69 trailer parkhrg spaces and 76 trailer stalls, together with the has Entity's share of Project -wide infrastructure (e.g., road improvements, utility installation) (the "Phase 1 Project") on behalf of the Redeveloper pursuant to the Redevelopment Agreement; and WHEREAS, the Redeveloper will transfer Block 602, Lot 1.02 (the "Phase 2 Area ") to Carteret Logistics II Urban Renewal, L.L.C. (the "Phase 2 Entity ") for purposes of undertaking and constructing a building with a footprint of approximately 334,620 square footage, along with approximately 196 car parking spaces, 201 trailer parking spaces and 48 trailer stalls, together with the se 2 Entity's share of Project -wide infrastructure (e.g., road improvements, utility installation) (the "Phase 2 Project ") on behalf of the Redeveloper pursuant to the Redevelopment Agreement; and WHEREAS, the Redeveloper will transfer Block 602, Lot 1.01 (the "Phase 3 Area ") to Carteret Logistics III Urban Renewal, L.L.C. (the "Phase 3 Entity", and together with the Phase 1 Entity and the Phase 2 Entity, the `Entities" and each, an "Entity ") for purposes of undertaking and constructing a building with a footprint of approximately 355,100 square footage, along with approximately 114 car parking spaces, 29 trailer parking spaces and 50 trailer stalls, together with the t se 3 Entity's share of Project -wide No. #21 -9 PAGE 2 infrastructure (e.g., road improvements, utility installation) (the "Phase 3 Project ") on behalf of the Redeveloper pursuant to the Redevelopment Agreement; and WHEREAS, pursuant to and in accordance with the provisions of the Long Term Tax Exemption Law of 1992, constituting Chapter 431 of the Pamphlet Laws of 1991 of the State of New Jersey, and the acts amendatory thereof and supplemental thereto (the "Tax Exemption Law ", as codified in N.J.S.A. 40A:20 -1 at seq.), the Borough is authorized to provide for tax abatement within a redevelopment area and for payments in lieu of taxes; and WHEREAS, each Entity has submitted an application to the Borough for the approval of an urban renewal project, as such term is used in the Tax Exemption Law, and a long term tax exemption in connection therewith, all in accordance with N.J.S.A. 40A:20 -8, which applications were accepted and approved pursuant to resolution. of the Borough Council duly adopted as of the date of adoption of this Ordinance; and WHEREAS, the Borough and the Phase 1 Entity have reached agreement with respect to, among other things, the terms and conditions relating to the Annual Service Charges, as such term is defined in the Phase 1 Financial Agreement (as described in Section I below), for the Phase 1 Area and the Phase I Project and desire to execute the Phase I Financial Agreement; and WHEREAS, the Borough Council hereby makes the findings set forth in Section 6.01 of the Phase 1 Financial Agreement in accordance withN.J.S.A. 40A:20 -11(a) and (b); and WHEREAS, the Borough and the Phase 2 Entity have reached agreement with respect to, among other things, the terms and conditions relating to the Annual Service Charges, as such term is defined in the Phase 2 Financial Agreement (as described in Section 3 below), for the Phase 2 Area and the Phase 2 Project and desire to execute the Phase 2 Financial Agreement; and WHEREAS, the Borough Council hereby makes the findings set forth in Section 6.01 of the Phase 2 Financial Agreement in accordance with N.J.S.A. 40A:20 -11(a) and (b); and WHEREAS, the Borough and the Phase 3 Entity have reached agreement with respect to, among other things, the terns and conditions relating to the Annual Service Charges, as such term is defined in the Phase 3 Financial Agreement (as described in Section 5 below, and together with the Phase 1 Financial Agreement and the Phase 2 Financial Agreement, the "Financial Agreements" and each, a "Financial Agreement "), for the Phase 3 Area and the Phase 3 Project and desire to execute the Phase 3 Financial Agreement; and WHEREAS, the Borough Council hereby makes the findings set forth in Section 6.01 of the Phase 3 Financial Agreement in accordance with NIS.A. 40A:20 -11(a) and (b); and NOW, THEREFORE, BE IT ORDAINED AND ENACTED by the Borough Council of the Borough of Carteret, County of Middlesex, New Jersey, as follows: Phase I Financial Agreement Section 1. The Phase I Financial Agreement is hereby approved and authorized to be executed and delivered on behalf of the Borough by either the Mayor, the Chief Financial Officer or the Director of Law (each an "Authorized Officer") in substantially the form attached hereto as Exhibit A, with such changes as an Authorized Officer, in his/her respective sole discretion, after consultation with such counsel and any advisors to the Borough (collectively, the "Borough Consultants'), shall determine, such determination to be conclusively evidenced by the execution of the Phase I Financial Agreement by an Authorized Officer. The Borough Clerk is hereby authorized and directed to attest to the execution of the Phase 1 Financial Agreement by an Authorized Officer and to affix the corporate seal of the Borough to the Phase I Financial Agreement. NO. #21 -9 PAGE Section 2. Air exemption from taxation pursuant to the Tax Exemption Law as set forth in the Phase 1 Financial Agreement is hereby granted to the Phase I Entity for the term of the Phase 1 Financial Agreement and during the term of such tax exemption there shall be paid to the Borough, in lieu of any taxes to be paid on the improvements of the Phase 1 Project, an annual service charge as provided in the Phase 1 Financial Agreement. Phase 2 Financial Agreement Section 3. The Phase 2 Financial Agreement is hereby approved and authorized to be executed and delivered on behalf of the Borough by an Authorized Officer in substantially the form attached hereto as Exhibit B, with such changes as an Authorized Officer, in his/her respective sole discretion, after consultation with the Borough Consultants, shall determine, such determination to be conclusively evidenced by the execution of the Phase 2 Financial Agreement by an Authorized Officer. The Borough Clerk is hereby authorized and directed to attest to the execution of the Phase 2 Financial Agreement by an Authorized Officer and to affix the corporate seal of the Borough to the Phase 2 Financial Agreement. Section 4. An exemption from taxation pursuant to the Tax Exemption Law as set forth in the Phase 2 Financial Agreement is hereby granted to the Phase 2 Entity for the term of the Phase 2 Financial Agreement and during the term of such tax exemption there shall be paid to the Borough, in lieu of any taxes to be paid on the improvements of the Phase 2 Project, an annual service charge as provided in the Phase 2 Financial Agreement.. Phase 3 Financial Ameement Section 5. The Phase 3 Financial Agreement is hereby approved and authorized to be executed and delivered on behalf of the Borough by an Authorized Officer in substantially the form attached hereto as Exhibit C, with such changes as an Authorized Officer, in his /her respective sole discretion, after consultation with the Borough Consultants, shall determine, such determination to be conclusively evidenced by the execution of the Phase 3 Financial Agreement by an Authorized Officer. The Borough Clerk is hereby authorized and directed to attest to the execution of the Phase 3 Financial Agreement by an Authorized Officer and to affix the corporate seal of the Borough to the Phase 3 Financial Agreement. Section 6. An exemption from taxation pursuant to the Tax Exemption Law as set forth in the Phase 3 Financial Agreement is hereby granted to the Phase 3 Entity for the term of the Phase 3 Financial Agreement and during the term of such tax exemption there shall be paid to the Borough, in lieu of any taxes to be paid on the improvements of the Phase 3 Project, an annual service charge as provided in the Phase 3 Financial Agreement. General Section 7. The Authorized Officers are hereby further severally authorized and directed to (i) execute acrd deliver, and the Borough Clerk is hereby further authorized and directed to attest to such execution and to affix the corporate seal of the Borough to, any document, instrument or certificate deemed necessary, desirable or convenient by the Authorized Officers or the Borough Clerk, as applicable, in their respective sole discretion, after consultation with the Borough Consultants, to be executed in connection with the execution and delivery of the Financial Agreements and the consummation of the transactions contemplated thereby, which determination shall be conclusively evidenced by the execution of each such certificate or other document by the party authorized heremrder to execute such certificate or other document, and (ii) perform such other actions as the Authorized Officers deem necessary, desirable or convenient in relation to the execution and delivery thereof. NO. #21 -9 PAGE 4 Section 8. An executed copy of each Financial Agreement shall be certified by and be filed with the Office of the Borough Clerk. Section 9. Within ten (10) calendar days following the later of (i) the effective date of this Ordinance following its final adoption by the Borough Council approving the tax exemptions described above or (ii) the execution of the Financial Agreements by the Entities, the Borough Clerk shall file certified copies of this Ordinance and the Financial Agreements with the Tax Assessor of the Borough, the Chief Financial Officer of Middlesex County, and the Middlesex County Counsel, in accordance with N.I.S.A. 40A:20 -12. Section 10. This Ordinance shall take effect upon final passage and publication as required by law. Section 11. Upon final adoption hereof, the Borough Clerk shall forward certified copies of this Ordinance to Matthew C. Karrenberg, Esq., DeCofiis, Fitzpatrick, Cole & Giblin, LLP, Special Redevelopment Counsel to the Borough. DO NOT USE SPACE BELOW THIS LINE RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.II. COUNCILMAN YES NO NV A.B BEILTNQ X JOHAL X DIAZ X KRUM X DINASCIO X NAPLES X X- Indicate Vote AB- Absent NV -Not Voting XOR -Indicates Vole to Overrule Veto Adopted on first reading of the Council of Bte Borough of Carteret, N.L, on Adopted on second reading after hearingon June 3, 2021 May 20, 2021 APPROppVEwDp BY ON MAYOR t (( MUNIf.IPAi. CLL•RI� ¢^ ii. AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Star Ledger, a newspaper which is printed in Newark, New Jersey and published in Essex County, of general circulation in said county and state. One 1 time(s), once in each issue as follows: May 26, 2021 E i �� . p t Carmela Pogorzclski, kMC Municipal Clerk Notary Public of New Jersey DANA C. ARCHEVAL NOTARY PUBLIC OF NEW JERSEY My Commisft Expires 1112/2022 Sworn and subscribed before me this a9C A day of 0,21 AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Star Ledger, a newspaper which is printed in Newark, New Jersey and published in Essex County, of general circulation in said county and state. One 1 time(s), once in each issue as follows: une 9, 2021 Carm"ela Pogori� Municipal Cleric Notary P blic of New Jersey Sworn and subscribed before me this day of '\'�L_ `'� " "O� MARGARET M. RIMO U 44♦ NOiN+r +t f+ ¢ ,n ',i .. ERSEY B wAw �cASt MY CUh1�.11� ei -.','. �.�. +; 4!2025 -. NEWAL, LLC APPPM /m nun A�......A_ r / j '4tu: MAY 20, 2027 d as Adopted on First a Pogorzelskl, RMC;. >al Clerk $43.40