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Home My Public Portal AboutOrd. 07-10 No. 07-10 @rotttctme of t4e tNoroug4 of QIctrterd1 ~ ~ 3J ~ Councilman Pj"es_ents the foIlowing.Qr.dinaQS':(: S~<;onde.Q...QY Councilman HIS ORDINANCE SECURES BONDS OR OTHER OBLIGATIONS ISSUED IN ACCORDA1'lCE WITH THE PROVISIONS OF THE 'REDEVELOPMENT AREA BOND FINANCING LAW' AND THE LIEN HEREOF IN FAVOR OF THE OWNERS OF SUCH BONDS OR OTHER OBLIGATIONS IS A MUNICIPAL LIEN SUPERIOR TO ALL OTHER NON-MUNICIPAL LIENS HEREAFTER RECORDED. AN ORDINANCE PROVIDING FOR A SPECIAL ASSESSMENT FOR A PORTION OF THE LOWER ROOSEVELT AVENUE REDEVELOPMENT AREA. WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A: 12A-l et seq. the "Act"), as amended and supplemented, provides a process for municipalities to participate in the redevelopment and improvement of areas in need ofredevelopment; and \VHEREAS, pursuant to the Act, the Borough of Carteret, in the County of Middlesex, New Jersey (the "Borough") designated certain areas of the Borough, constituting Block 243, Lots ]-5, Block 252, Lots 1-5, Block 253, Lots 1-7, Block 254, Lots I, 2, 3.0], 3.02, 4.01, 6-10 and 12-]4, Block 260, Lots 7-15, Block 261, Lots 1-8, Block 272, Lots 1-6,6.01 and 7-16 and lock 273, Lots 10-12, all as identified on the official tax maps of the Borough, as an "area in eed ofredevelopmentll (the "Redevelopment Area"); and WHEREAS, on Febmary 6, 2003 the Governing Body adopted Ordinance No. 03-02, approving and adopting a redevelopment plan, entitled <<The Lower Roosevelt Avenue Redevelopment Plan", superseding the provisions of the Borough Zoning Ordinance for the Redevelopment Area (the "Redevelopment Plan"); and \VHEREAS, the Redevelopment Plan provides for, among other things, the construction of mixed use improvements, consisting of for sale and rental residential components and a retail component on the Redevelopment Area; and WHEREAS, on February ]8, 2003, the Borough adopted Resolution number 03-113, designating Kaplan at Carteret, L.L.C. (the ttRedevelopertt, and predecessor in interest to the Entities (as defined herein)) as the redeveloper of the Redevelopment Area and authorizing the negotiation of a redevelopment agreement with the Redeveloper; and \YHEREAS, the Redeveloper has agreed to implement the Redevelopment Plan and develop, design, finance and constmct a mixed-use project including approximately forty-eight (48) townhonses (the "Townhouse Component"), up to one hundred thirty-eight (138) condominiums (the "Condominium Component"), approximately two hundred eight (208) rental apartments (the "Rental Component") and approximately forty-two thousand nine hundred (42,900) sqnare feet of retail space (the "Retail Component" and, together with the Townhouse Component, the Rental Component and the Retail Component, the "Project") and in connection therewith, the Redeveloper has agreed to devote substantial cash assets and borrowed funds to the completion ofthe Project; and - \vHEREAS, in order to implement the development, financing, construction, operation and management of the Project, the Borough entered into a redevelopment agreement with the Redeveloper dated Febmary 25, 2004, as amended by the First Amendment to the Redeve]opment Agreement, dated July] 3, 2004, the Second Amendment to the Redevelopment Agreement, dated February 16, 2005 and the Third Amendment to the Redevelopment Agreement, dated Febmary 16, 2005 (collectively, the "Redevelopment Agreement"), which Redevelopment Agreement specifies the rights and responsibilities of the Borough and the Redeveloper with respect to certain aspects of the Project; and NO. 07-10 PAGE~ "'HEREAS, by. Resolution No. 05-48, adopted by the Borough Council on January 27, 2005, pursuant to Sechon 4 of the Act (N.J.S.A. 40A: 12A-4), the Borough designated the , Carteret Redevelopment Agency (the "Redevelopment Agency") act as the "Redevelopment Entity" (as snch term is defined in the Act at NJ.S.A. 40A:]2A-3) for the Redevelopment Area to exerCIse the powers contained in the Act to facilitate the development and redevelopment of the ~~yelopment Area; and 'VHEREAS, in order to implement the development, financing; construction, operation and management of the Project, on February 10, 2006, the Redeveloper fanned two urban renewal entities under the provisions of the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. (the "Long Term Tax Exemption Law") and the New Jersey Limited Liability Company Act, NJ.S.A. 42:2B-l et seq., known as Gateway at Carteret Urban Renewal, LLC ("Gateway") and Camelot at Carteret Urban Renewal, LLC ("Camelot" and, together with Gateway, the "Entities"); and 'VHEREAS, Gateway will be responsible for implementing the development, financing, construction, operation and management of the Townhouse Component and the Condominium Component and Camelot will be responsible for implementing the development, financing, construction, operation and management of the Rental Component and the Retail Component; and 'VHEREAS, construction of the Project requires the Borough to construct improvements including, but not limited to the installation of stoml and sewer drains, improvements and/or installation of curbs, sidewalks, decorative street lighting, shade trees, pavers and road improvements within the Redevelopment Area (the "Local Improvements"); and "'HEREAS, the Local Improvements will be, and are intended to be, local improvements within the meaning of the Local and Other Improvements Law, N.J.S.A. 40:56-1 et seq. (the "Local Improvements Law"), as amended and supplemented, and such Local Improvements benefit the Redevelopment Area; and "'HERE AS, to assist the Borough in financing the Local Improvements, the Redevelopment Agency, as redevelopment entity, will issue the Bonds pursuant to the Redevelopment Area Bond Financing Law, N.J.S.A. 40A: 12-64, et seq., (the "Bond Financing Law"); and _ \-'-'VHEREAS' in order to secure the Bonds, and to re.cover the costs of the L~cal Improvements, the Borough hereby desires to impose a specI~1 as~essment on the" ProJ:ct pursuant to the Local Improvements La\" and the Bond Fmancmg Law (the Spec131 Assessment"); and 'VHEREAS, pursuant to the Bond Financing Law and such other statutes as .may be sources of relevant authority, if any, the Borough intends to pledg:, to the extent reqUITed, the Special Assessment paid to the Borough by the Entities for debt serVIce on the Bonds; and , "'HERE AS, the B~nd- Financing Law r~qUiresthe approvarof the State Local Finan~e IBoard prior to the issuance of financial instruments such as the Bonds where such fmancml instruments are to be secured by special assessments; and NOW, THEREFORE, BE IT ORDAINED BY THE BOROUGH COUNCIL OF THE BOROUGH OF CARTERET, NEW JERSEY AS FOLLOWS: 1. The Special Assessment, in an amount not to exceed $2,500,000, shall be assessed on the Redevelopment Area, which amount shall not exceed the cost of the Local Improvements paid with respect to the property in the Redevelopment Area. 2. The Special Assessment shall be accepted by the Entities, and the Special Assessment shall be deemed to be the benefit conferred on the Redevelopment Area by the Local Improvements. 3. The Special Assessment shall be paid by the Entities, or their successors or assigns, in yearly installments, with legal interest thereon, in accordance with the temlS an provisions of special assessment agreements (the "Special Assessment AgreementS"j incorporating the terms of this ordinance, ,,,hich Sp~cial Assessment Agreements shall b entered into by and between the Borough and the Entitles. NO. 07-10 PAGE ----1-- 4. The Special Assessment shall constitute a municipal lien on the Redevelopment Area and shall be payable in the total amount of$83,334 per year, inclusive of interest thereon, each Entity being jointly and severally responsible for the entire amount, for the period of time the Bonds are outstanding, or for thirty (30) years, whichever is less, and shall be payable by the Entities, or their successors or assigns only if, and to the extent that, the Annual Services Charges (as defined in the Redevelopment Agreement) are not paid. 5. In no event shall payments of the Special Assessment be accelerated in the event of default, and the cnforcement of the lien shall be solely for payment of delinquent amounts plus applicable costs. If any installment of the Special Assessment remains unpaid for 30 days after the time it shall become due, any subsequent installments wh~ch would not yet have beconle due except for the default shall be considered as not in default-and the lien for the installment not yet due shall continue. 6. The Borough hereby makes an absolute pledge of, and unconditionally assigns all of its right, title and interest in and to the Special Assessment to the trustee for the Bonds. along with the rights and remedies provided to the Borough under the Special Assessment Agreements, including, but not limited to, the right of collection of payments due. 7. The Mayor is hereby authorized to execute, on behalf of the Borough, the Special Assessment Agreements. 8. The Mayor and Chief Financial Officer of the Borongh are hereby authorized and directed to undertake any and all actions and to execute and deliver all such other documents, instmments and agreements as may be necessary. desirable or appropriate to consunUl1ate the transactions approved by tIus ordinance. 9. All ordinances that contain provisions contrary to the provisions of this ordinance shall be and are hereby repealed. 10. If any portion or clause of tIus ordinance is declared invalid for any reason whatsoever, the same shall not affect the validity or constitutionality of any other part or portion of this ordinance. 11. This ordinance shan take effect twenty (20) days after the first publication thereof after final adoption as provided by the Bond Financing Law. DO NOT USE SPACE BELOW THIS LINE COUNCIU\IAN RECORD OF COUNCIL VOTE YES NO NV A.B. x YES NO NV A.B. x X x - Indicate Vote AB - Absent NV - Not Voting XOR + Indicates Vote to Overrule Veto Adopted on first reading of the Council of the Borough of Carteret, N.J., on Apri 1 11., ')007 .Tll1y 1?, ?007 Affidavit of Publication Publisher's Fee $46.64 Affidavit Charge $25.00 State of New Jersey Middlesex County Personally appeared Catherine Williams Of the Home News Tribune, a newspaper printed in Freehold, New Jersey and published in NEPTUNE, in said County and State, and of general circulation in said county, who being duly sworn, deposedl and saith that the advertisement of which the annexed is a true copy, has been published in the said newspaper 1 times, once in each issue as follows: } SS. 7/05/07 AD. 2007 -.. f!adw;;MJ/ 1r;Yit~1!V Sworn and subscribed before me, this 5 day of July, 2007 ORDINANCE #07.10 r:~17~erlo~~~:~!n~i~~~~~!~tg~~ ties In the Borough of Carteret and (iJ) authorize the execution of documents necessary to memoriaJlze the terms of such assessment The cial assess- ~ej~~l'M, ~~?a~n;~~)(/~~t2f/O~~o O~.~,rt~{~! ~O~~~t,M~~~llfe~e~Udfl~'{1-iich6~lm~~ ~Xi:;U:]'1 persons interested will be given an opportunity to be heard. KATHLEEN M. BARNEY, MMC ['$~:J~}ICJerk 452770 AFFIDAVIT OF PUBLICATION The following is a true copy of an Ordinance or Resolution of the Borough of Carteret that has appeared in the Home News Tribune, a newspaper which is printed in Freehold, New Jersey and published in Neptune, in said County and State and of general circulation in said county. one (1) times, once in each issue as follows: July 5, 2007 &~ 0. J~ /it7tlJ2hL I Notary Public of New J5~~y'" RIVERA Kath!e~n Barney, RMCI NOTARY PUBLIC OF NEW JERSEY MUDlclpal Clerk MY COMMISSION EXPIRES MAY 2, 2011 Sworn and subscribed before me this 9A.A day of o....~ - 0 a,J) ~J.- , 17-10