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