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HomeMy Public PortalAboutr 21-116lRevalution of #he Pvrroug4 of an erd, �K� 51 No. #21 -116 Date of RESOLUTION OF THE BOROUGH OF CARTERET,IN THE COUNTY OF MIDDLESEX, DESIGNATING CONDITIONAL REDEVELOPER FOR CERTAIN PROPERTIES IN THE PERSHING AVENUE REDEVELOPMENT AREA AND AUTHORIZING INTERIM COSTS AGREEMENT IN CONNECTION THEREWITH WHEREAS, the Local Redevelopment and Housing Law, KJSA. 40A: 12A-1 et seq. (the "Redevelopment Law ") authorizes municipalities to determine whether certain parcels of land located therein constitute areas in need of redevelopment; and WHEREAS, on September 20, 2018, the Borough Council (the "Borough Council ") of the Borough adopted a Resolution designating the area consisting of Block 5801, Lot 1, Block 5802, Lots 10, 19, 20, 21, 22, 23, 24, 25 & 30, and Block 6411, Lots 7, 8, 9, 10 & I l on the Official Tax Map of the Borough (collectively, the "Pershing Avenue Redevelopment Area ") as an area need of redevelopment under the Redevelopment Law; and WHEREAS, the Borough Council previously adopted an ordinance approving and adopting a redevelopment plan for the Pershing Avenue Redevelopment Area; and WHEREAS, Butter Companies ( "Butter ") submitted to the Borough a proposal to redevelop a certain portion of the Pershing Avenue Redevelopment Area, specifically Block 6411, Lots 8, 9, 10 and I1 on the Borough's Tax Maps (the "Project Area "); and WHEREAS, the Borough Council has determined that Butter is capable of undertaking the redevelopment of the Project Area; and WHEREAS, the Borough wishes to engage in preliminary negotiations with Butter, or with any corporate entity that Butter shall create and wholly own, in furtherance of entering into a formal redevelopment agreement for the Project Area. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED by the Mayor and Council of Borough of Carteret, in the County of Middlesex and the State of New Jersey, as follows: Section 1. The aforementioned recitals are incorporated herein as though fully set forth at length herein. Section 2. Butter is hereby conditionally designated as the redeveloper of the Project Area and has, at the sole and exclusive discretion of the Borough, the option to enter into preliminary negotiations for a redevelopment agreement with the Borough for the Project Area. This designation shall apply to Butter and/or to any special purpose entity the principals of Butter may elect to form, so long as the principals in and of Butter hold a controlling interest in such special purpose entity. Section 3. The within designation is hereby made for a limited period of one hundred- eighty (180) days from the date of adoption hereof (or such additional period of time as the Borough may determine in its sole and absolute discretion), and is contingent upon Butter providing any additional project related information as may be requested by the Borough. Section 4. The within designation is further contingent upon Butter agreeing to reimburse the Borough for any and all costs associated with the Borough's review of said additional material and any efforts involved in designating Butter as the conditional redeveloper and negotiating a formal redevelopment agreement between the Borough and Butter (or such wholly owned corporate entity as it may create). Said costs shall include, but not be limited to, the cost of any and all professional consultants retained by the NO. #21 -116 PAGE 2 Borough to review said materials and/or assist the Borough in negotiations of a formal redevelopment agreement. Section 5. The Mayor is hereby authorized and directed to execute an Interim Costs Agreement in a form to be approved by the Mayor, after consultation with counsel. Section 6, This resolution shall take effect immediately. Adopted this 18" day of June, 2021 and certified as a time copy of the original on June 18, 2021. CARMGLA POGO RZELSKI, RMC Municipal Clerk RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.E. COUNCILMAN YES NO NV A.II. BELLING X JOHAL X DIAZ X KRUM NAPLES X X - Indicate Vole Ali - Absent NV - Not Voting NOR - Indicates Vote to Overrule Veto Adopted at a meeting of the Municipal Council 48125424 -8239, v. 1 June 18 2021 rn�gK i r t -0cMANIMON • SCO RAND • BAUMANN Baldev Butter Butter Construction, Inc. 265 Wood Avenue Edison, NJ 08820 75 Livingston Avenue, Roseland, NJ 07060 (973) 622.1000 Writer's Direct Dial: (973) 622 -4869 Writer's Email: knigmanimon com, September_, 2021 Re: Borough of Carteret (the "Borough ") Pershing Avenue Redevelopment Area Dear Mr. Butter: The purpose of this letter is to summarize the terms of the redevelopment, by Butter Construction, Inc. (or an affiliate thereof, "Butter"), of parcels on Pershing Avenue, Noe Street and Harris Street in the Borough. A. Borough to designate Butter as the conditional redeveloper for Block 6411, Lots 8, 9, 10, 11 on the Borough's Tax Maps (the "Project Area "). B. Parties will negotiate a Redevelopment Agreement (the "Redevelopment Agreement "), providing for the redevelopment of the Project Area with a mixed -use project consisting of approximately 64 residential units, and potential ancillary commercial space fronting Pershing Avenue and Blanchard Street in an amount to be determined. 1. Tenant amenities and rooftop terrace to be determined. 2. Building to be 4 stories over podium parking, with optional corner lofts. C. The bedroom mix will be maximum of 60% 2- bedroom units and minimum of 40% 2- bedroom units. D. Podium parking Parking under Podium slab to be provided at a rate of 440 one space per residential unit; provided, however, that 4 such spaces may be designated for commercial /retail uses, if applicable. E. Butter to purchase Project Area from Borough for an amount equal to $32,500 per residential unit to be constructed on the Project Area, based on the number of residential units agreed upon and set forth in the Redevelopment Agreement. Foregoing amount includes sewer McManlmon, Scolland & Baumann, LLC Newadl - Roseland - Trenton connection fees, any otherwise applicable parking bank fees or impact fees. 1. Deposit of $100,000 upon execution of Redevelopment Agreement, balance payable at closing, which is estimated to occur in Spring 2022. 2. Borough will convey the Project Area "As Is" and vacant buildings. F. PILOTs at rate of 15% of Annual Gross Revenue. G. Standard, periodic, per unit fees to apply for RWJ Fitness Center membership and Ferry Jitney Service. H. Butter to be responsible for any normal and customary escrow fees associated with approvals and /or permits, but Board application fees are waived. If you agree that these terms fairly summarize Butter's understanding of the project terms, please countersign the letter below and return same to me at your earliest convenience. Thank you. Very truly yours, Net" J. ,Atc✓1taai noa Kevin P. McManimon Butter Construction, Inc. By: Baldev Butter Project Manager Iva 4833 - 0414 -0794, v. 1