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HomeMy Public PortalAboutr 07:291 (L~eZOlU1ta1't o~ 117.8 ~.ltr01tg17 01 lllu:rteret1 f'1 * ;jJ ~ No. ..J)]-?Q1 Dale of Adoption November 29, 2007 AUTHOmZINGA TAX ABATEMENT FOR WHEELER COMMONS SENIOR PROJECT 'VHEREAS, 54 \Vheeler Avenue. LLC (hereinafter referred to as the .nSponsor") proposes to constmct a housing project to be known as Wheeler Commons to orovide fomieen (14) affordable housing units for senior citizens (hereinafter referred to as the "ProjectU) pursuant to the provisions of the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended IN.J.S.A. 55:14K-l tl gg,), th" mles promulgated thereunder at NJ.A.C. 5:80-1 tl gg., and all applicable guidelines (the foregoing hereinafter referred to as the tlHMF A Requirementsll) within the municipality of Carteret (hereinafter referred to as the IIMunicipality!l) on a site described as Lot 147. Block .lQ..as shown on the Official Assessment Map of the Borough of Carteret. Middlesex County and commonly known as 54 Wheeler Avenue; and WHEREAS, the Project will be subject to the HMFA Requirements and the mortgage and other loan documents executed between the Sponsor and the New Jersey Housing and MOltgage Finance Agen~y (hereinafter referred to as the IIAgencyll); and WHEREAS, the Project will be subject to the HMF A Requirements and the mOltgage and other loan documents executed between the Sponsor and the Agency; and \VHEREAS, pursuant to the HMF A Requirements, the governing body of the Municipality hereby determines that there is a need for this housing..project in the Municipality; and \VHEREAS, the Sponsor has presented to the Municipal Council a revenue projection for the Project which sets f011h the anticipated revenue to be received by the Sponsor from the operation of the Project as estimated by the Sponsor and the Agency, a copy of which is attaclied hereto and made a part hereof as Exhibit A. NOW, THEREFORE, BE IT RESOLVED hy the Council of the Borough of Carteret (the lICOliIlCillt) that: 1. The Council finds and detelmines that the proposed Project will meet or meets an existing housing need; 2, The Council does hereby adopt the within Resolution and makes the detelmination and findings herein contained by virtue of, pursuant to, and in the confonnity with the provisions of the HMF A Requirements with the intent and purpose that the Agency shall rely thereon in making a mortgage loan to the Sponsor, which shall constmct, own and operate the Project; and 3. The Council does hereby adopt the within Resolution with the further intent and purpose that from the date of execution of the Agency mortgage, the proposed Project, including both the land and improvements thereon, wilt be exempt from real property taxation as provided in the HMF A Requirements, provided that payments in lieu of taxes for municipal services supplied to the Project are made to the municipality in such amounts and manner set forth in the Agreement for Payments in Lieu of Taxes attached hereto as Exhibit "B"; and NO, 07 291 PAGE 2 4. The Council hereby authorizes and directs the Mayor of the Borough of Cafteret to execute, on behalf of the municipality, the Agreement for Payments in Lieu of Taxes in substantially the fmm atmexed hereto as Exhibit "BlI; and 5. The Council understands and agrees that the revenue projections set forth in Exhibit nAil are estimates and that the actual payments in lieu of taxes to be paid by the Sponsor to the municipality shall be determined pursuant to the Agreement for Payments in Lieu of Taxes executed between the Sponsor and municipality. MJpte:l this 29th day of N:>.uel:er, 2fJJ7 ani catifie:l as a troo cop; of the origiml en Noiad:er 3:Jth, 2fJJ7. t<!illllJiliN M. BAfNEI', f~C ftmicilEl Clerk COUNCII,.l\lAN RECORD OF COUNCIL VOTE YES NO NV A.B. COUNCILMAN YES NO NV A.B. I 0 x x ~ Indicate Vote AS - Absent NY - Not Voting XOR - Indicates Vote to Overrule Veto Adopted at II meeting of the r<.hmicipal Council RESIDENTIAL REDEVELOPMENT WHEELER COMMONS EXHIBIT A - RESOLUTION EXHIBIT A PILOT CALCULA TlON Number of Bedrooms Number of Units Projected Rent Total Rent! Month One-Bedroom 7 $747.00 $ 5,229 $ One Bedroom 7 $885.00 $ 6,195 $ 14 ANNUAL GROSS RENTAL $ 137,088 Less Vacancy $ (6,821) Less Project Paid Utilities $ (4,200) GROSS SHELTERED RENT $ 126,067 X PILOT PERCENTAGE 10.00% . (PILOT) AMOUNT $ 12,6071 CALCULATION OF ANNUAL PAYMENT IN-LIEU OF TAXES (PILOT) Annual Rent 62,748 74,340 TO BE EXECUTED UPON HMFA FUNDING CONFIRMATION Exhibit B FORM OF AGREEMENT FOR PAYMENT IN LIEU OF TAXES (revised April 2006) THIS AGREEMENT, made this 29th day of November, 2007, between 54 Wheeler Ave., LLC, a [limited partnership, limited liability company, corporation] of the State of New Jersey having its principal office at 222 Washington Avenue, Carteret, NJ (hereinafter the "Sponsor") and the Borough of Carteret, a municipal corporation in the County of Middlesex and State of New Jersey (hereinafter the "Municipality"). WITNESSETH In consideration of the mutual covenants herein contained and for other good and valuable consideration, it is mutually covenanted and agreed as follows: 1. This Agreement is made pursuant to the authority contained in Section 37 of the New Jersey Housing and Mortgage Finance Agency Law of 1983 (N.J.SA 55:14K-1 et sea.) (hereinafter "HMFA Law") and a Resolution of the Council of the Municipality dated November 7, 2007, (the "Resolution") and with the approval of the New Jersey Housing and Mortgage Finance Agency (hereinafter the "Agency"), as required by N.J.SA 55:14K-37. 2. The Project is or will be situated on that parcel of land designated as Block 147, Lot 10 as shown on the Official Assessment Map of the Borough of Carteret, and more commonly referred to as Carteret, New Jersey. 3. As of the date the SponSor executes a first mortgage upon the Project in favor of the Agency (hereinafter referred to as the "Agency Mortgage"), the land and improvements comprising the Project shall be exempt from real property taxes, provided that the Sponsor shall make payments in lieu of taxes to the Municipality as provided hereinafter. The exemption of the Project from real property taxation and the sponsor's obligation to make payments in lieu of taxes shall not extend beyond the date on which the Agency Mortgage is paid in full, which, according to the HMFA Law, may not exceed fifty (50) years. 4.(a) For projects receiving construction and permanent financing from the Agency, the Sponsor shall make payment to the Municipality of an annual service charge in lieu of taxes in such amount as follows: (1) From the date of the execution of the Agency Mortgage until the date of substantial completion of the Project, the Sponsor shall make payment to the municipality in an amount equal to 10% of gross sheltered rents (pursuant to the HMFA Law, the annual Municipality may accept any such payment without prejudice to its right to challenge the amount due. In the event that the payments made by the Sponsor for any fiscal year shall exceed the Audit Amount for such fiscal year, the Municipality shall credit, the amount of such excess to the account of the Sponsor. (b) All payments pursuant to this Agreement shall be in lieu of taxes and the Municipality shall have all the rights and remedies of tax enforcement granted to Municipalities by law just as if said payments constituted regular tax obligations on real property within the Municipality. If, however, the Municipality disputes the total amount of the annual payment in lieu of taxes due it, based upon the Audit, it may l;ipply to the Superior Court, Chancery Division for an accounting of the service charge due the Municipality, in accordance with this Agreement and HMFA Law. Any such action must be commenced within one year of the receipt of the Audit by the Municipality. : (c) In the event of any delinquency in the aforesaid payments, the Municipality shall give notice to the Sponsor and NJHMFA in the manner set forth in 9(a) below, prior to any legal action being taken. 6. The tax exemption provided herein shall apply only so long as the Sponsor or its successors and assigns and the Project remain subject to the provisions of the HMFA Law and Regulations made thereunder and the supervision of the Agency, but in no event longer than the term of the Agency Mortgage. In the event of (a) a sale, transfer or conveyance of the Project by the Sponsor or (b) a change in the organizational structure of the Sponsor, this Agreement shall be assigned to the Sponsor's successor and shall continue in full force and effect so long as the successor entity qualifies under the HMFA Law or any other state law applicable at the time of the assignment of this Agreement and is obligated under the Agency Mortgage. 7. Upon any termination of such tax exemption, whether by affirmative action of the Sponsor, its successors and assigns, or by virtue of the provisions of the HMFA Law, or any other applicable state law, the Project shall be taxed as omitted property in accordance with the law. 8. The Sponsor, its successors and assigns shall, upon request, permit inspection of property, equipment, buildings and other facilities of the Project and also documents and papers by representatives duly authorized by the Municipality. Any such inspection, examination or audit shall be made during reasonable hours of the business day, in the presence of an officer or agent of the Sponsor or its successors and assigns. 9. Any notice or communication sent by either party to the other hereunder shall R!'l ~ent by cElrtifilild mqjl, rf'lt\.JrIl recl'lipt reque~teq, aqQre~lied ClS fOIlI'Y>'s: (a) When sent by the Municipality to the Sponsor, it shall be addressed to Mr. Louis J.R. Kady, 22 Washington Ave., Carteret, NJ 07008 or to such other address as the Sponsor may hereafter designate in writing and a copy of said notice or communication by the Municipality to the Sponsor shall be sent by the Municipality to the New Jersey Housing and Mortgage Finance Agency, 637 South Clinton Avenue, P.O. Box 18550, Trenton, NeW Jersey 08650- 2085. (b) When sent by the Sponsor to the Municipality, it shall be addressed to the Borough of Carteret Office of Economic Development or to such other address as the Municipality may designate in writing; and a copy of said notice or communication by the Sponsor to the Municipality shall be sent by the Sponsor to the New Jersey Housing and Mortgage Finance Agency, 637 South Clinton Avenue, P.O. Box 18550, Trenton, New Jersey 08650-2085. 10. In the event of a breach of this Agreement by either of the parties hereto or a dispute arising between the parties in reference to the terms and provisions as set forth herein, either party may apply to the SuperiOr Court, Chancery Division, to settle and resolve said dispute in such fashion as will tend to accomplish the purposes of the HMFA Law. 11. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than a sufficient number of counterparts to evidence the execution of this Agreement by each party hereto. ATTEST SPONSOR: By: By: ATTEST MUNICIPALITY: By: