HomeMy Public PortalAboutr 97:255 Dlu¢ o1' Ad-pli."--Augu~--21~-1997
I-In,_ 97=255
RESO~ON AUTHORIZIN~ ~ FILING OF AN A~
~, the Borough of Carteret (the "Borough") has previously entered into
a Regional Contribution Agreement (" RCA") with the Township of Cranbury; and
I~, the Borough has previously filed a project plan with the Council
of Affordable Housing (" c0~H "); and
I~, subsequent to the apprQval of the above described project plan the
Borough resolved a dispute with the developer it had designated to perform the
wwork on the project in compliance with RCA, thereby necessitating the filing
of a revised project plan.
NOW, T~BEITRESOLW~)as follows:
1.) The Revised project plan (copy attached) is hereby approved.
2.) The Borough's Economic Development Director is authorized to
forward the revised project plan to COAH and/or such other
agency as they shall so designate.
Adopted thus 21st day of August, 1997
and certified as a true copy of the
original on August 22, 1997.
KATHLEEN M. BARNEY
Municipal Clerk
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~CGO~RN&COUGHLIN ID:9087278477 '-~G 12'97 iSiO0 No.O09 P.O1
McGOWAN & COUGHLIN
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
207 SOUTH STEVENS AVENUE
P,O. BOX 8
SOUTH AMBOY, NEW JERSEY 08879
(908) 727-1400
FAX (908) 727-8477
TOTAL NUMBER OF PAGES, (including cover page) 6
TO; Mayor & Council
Attn; Kathy Barney
FAX#: 732-541-8926
FROM'. Craig J. Coughlin, Esq.
DATE: August 12, 1997
RE: Proposed Agreement
COMMENTS: Enclosed for your review is the proposed agreement with Frank
Raja.
please feel free
if you have any comments, concerns, or questions ~/7
to contact me.
~CGO~AN6£~UGHLIN ID:9057275~77 RUG 12'97 1S:O0 No.O09 P.02
~ONSBN~ &GRRRRRHT TO MODZrY
IBGZON~ ~O~RXB~ZOM &GRB~R~
and be%ween the BOROUGH OF ~TRRBT (hereinafter, .Carteret") and
~zA ~ SZRI~N~O (hereinafter, "Raja");
NHBREAS, the Township of Cranbury and Carteret have previously
entered into a Regional Contribution Agreement (,'RCA") pursuant to
N.J.S.A. 52:27D-301, et se~; and
WHBRBAS, Carteret agreed to allocate $20,000 per unit of RCA
funds to each unit to be rehabilitated by Raja, totally $500,000 in
the aggregate for 11 units at Roosevelt Hill ApartmentS, 11 units
at Roosevelt Hill Apartments II, and 3 units at 59 Roosevelt
Avenue;
WHRREJ~.S, Raja has successfully rehabilitated and rented 23 of
the 25 units according to law; and
WHEREAS, the documentation as between Carteret and Raja has
been somewhat lacking; and
NH~B~S, in order to improve the housing stock in the Borough
of Carteret, comply with the intent of the RCA and provide a
MCGOWAN6£OUGHLIN ID:9057278477 AUG 12~97 15:01No.O09 P.05~
renewable fund for the citizens of Csrteret, the Mayor and Council
and Raja have reached an agreement tO their mutual benefit.
NON, THEREFORe, B~ IT REGOLVED as follows:
1. The $500,00 shall be transferred to Raia as follows:
a) $250,000 in the form of a grant;
b) $250,000 in the form of a loan.
2. As monies ars received from Cranbury, the first $250,000
thereof will be paid over to Raja as grant monies.
'-' 3. The next $250,000 received from Cranbury will be paid
over to Raia in the form of a loan, with the following
terms:
a) Raia shall make annual payments of $2,000 payable
on or before September i of each year. The balance
of the loan (i.e. $192,000) shall be due and
payable on or before AuguSt 30, 202~, in the form
of a balloon payment.
b) no interest; and
c) secured by a non recourse mortgage on the property.
d) In the event Raia shall fail to complete the
rehabilitation of the remaining units located at
561 Roosevelt Avenue by November 30, 1997 to ~he
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MCGD~AN~COUGHLIN ID:9087278477 aUG 12'97
reasonable matisfaction of Carteret, gnless he is
precluded from doin~ so by structural Droblem~
Beyond hie c~ntrolf which he shall use his best
v efforts to then complete as soon as possib!~., then
payment~f $~0.000 for such units under the loan
shall become immediately due and payable.
e) Raia shall execute a nonrecourse note satisfactory
to Certeret evidencing the herein described loan.
f) The loan by Carteret shall not be assignable by
Raja without the written consent of Carteret.
g) The obligations under the loan by Raja shall be
binding upon Raia's successor and assigns,
no~withstanding the foregoing, In the event Raja
shall transfer title to any of property for which a
portion of the loan has been made, or in the event
of a change in Raia'e corporate structure or
status, Raia shall become immediately due and
payable.
4. This Agreement shall be binding on the parties, their
successors and assigns.
5. Raia agrees to diligently complete the two (2) units at
561 Roosevelt Avenue and to advise Cat,erst of their
completion. Ail rehabilitation shall be completed in a
._ good, workmanlike manner in accordance with the project
plan set attached as Schedule 1.
6. Notices. All notice, demands and requests, required or
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permitted to be given or made under any provision of this
Agreement, shall be in writing and sh&ll be given or made
by facsimile and overnight courier (Federal Express) or
registered or certified mail, return receipt requested,
postagepaid, addressed as followsl
If to Raja: 450 Seventh Street
Hoboken, NJ 07030
With a copy to: Frank Leanza, Esq.
Leanza & Agrapidis, P.C.
255 Route 17 South
Hackensack, NJ 07601
If to the Borough: Borough of carteret
Att: Kathleen Barney, Municipal Clerk
61 Cooke Avenue
Carteret, NJ 07008
with a copy to: Craig J. coughlin, Borough Attorney
McGowan & Coughlin, P.C.
207 So. Stevens Avenue
P.O. Box 8
South Amboy, NJ 08879
Any such notice, demand or request shall be deemed given
or made on the next business day after delivery to the
overnight courier and, if mailed, on the third (3rd)
business day after the date so mailed. Notwithstanding
the foregoing, in the case of the emergency referred to
herein, the notice to be given, if practical, by
telephone or facsimile, sent to Raia or the Borough at
its respective address or addresses as aforesaid, and
such notice shall be deemed given on the day on which
telephone call is made or the day on which the telegram
or cable gram il sent, as applicable.
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MCGQ~N&CQUGHLIN ID:9087278~?? ~UG~'9? ~:~ No.O09 P.06~
7. Entire Agreement. This instrument contains the entire
agreement end understanding between the parties hereto.
No statements, representatives, prior agreements or
~ understanding not herein set forth shall have any force
or effect unless an appropriate a~endment is executed by
all parties hereto. This Agreement shall become
effective only upon execution hereof by both parties
hereto and delivery of a fully executed resolution
hereof.
B. This Agreement shall be contingent upon approval of the
council on Affordable Housing.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by their duly authorized representatives.
ATTESTS BOROUGH OF ~RTBRBT
KATHLBBN M. BARNEY, CLERK PETER SIC&, MAYOR
- ~RANK RAIA
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