Redevelopment Agency

Redevelopment Agency Meeting Minutes October 15, 2020 Page #1 : Redevelopment Agency Meeting Thursday, October 15, 2020 7:00 p.m. Zoom Virtual Meeting ID: 897 6706 9311 Password: 712830 Commissioners Present: Arthur Soto, Peter Cedeno-Castro, Angel Torres and David Spector Commissioners Absent: Ruth Perez, Chaim Munk and Kimberly Perez Staff Present: Ricardo Fernandez/Executive Director, Brian Hak, Redevelopment Attorney, Joe Buga/Project Manager; Asenett Martin,Secretary Proper Notice: Adequate notice of the meeting was provided by notice to the Herald & News and Bergen Record, and by posting on the City Clerk’s bulletin board specifying the time, zoom link and known agenda I. Roll Call II. Pledge of Allegiance III. Public Session No members of the public present IV. Minutes of the meeting for August 13, 2020 Moved: Peter Cedeno-Castro Second: Arthur Soto For: 3 Against: 0 Abstain: 1 Not Present: 3 Redevelopment Agency Meeting Minutes October 15, 2020 Page #2 V. The bill list for October 15, 2020 in the amount of $19,967.25 was reviewed and approved. Moved: Arthur Soto Second: David Spector For: 4 Against: 0 Abstain: 0 Not Present: 3 VI. Presentation from TICI 1, LLC on the 1 Market Street Property by Charles Mannino and Steve Gouin, Esq. VII. RESOLUTIONS PASSAIC REDEVELOPMENT AGENCY RESOLUTION NUMBER 20-11 Resolution Designating Market Street TIC I, LLC as the Redeveloper for Property located at 1-11 South Market Street and Canal Street, City of Passaic, State of New Jersey, Block 1030, Lot 53 and Block 1036, Lot 82 and Authorizing an Interim Costs Agreement WHEREAS, Market Street TIC I, LLC (hereinafter referred to as the “Redeveloper”) is the intended contract purchaser of properties located at 1-11 South Market Street and Canal Street, known on the City of Passaic’s Tax Maps as Block 1030, Lot 53 and Block 1036, Lot 82 (hereinafter referred to as the “Property”), which is located within the geographic boundaries of the City of Passaic (hereinafter referred to as the “City”) in an area that has been designated by the City as an area in need of redevelopment/rehabilitation, which property is included in a duly adopted zoning plan known as the Eastside Redevelopment Plan for the City of Passaic, State of New Jersey (hereinafter referred to as the “Plan”), as amended; and, Redevelopment Agency Meeting Minutes October 15, 2020 Page #3 WHEREAS, the Redeveloper submitted a redevelopment proposal, on or about June 25, 2019 (hereinafter referred to as the “Proposal”) to the City of Passaic Redevelopment Agency (hereinafter referred to as the “Agency”) for the Property for uses in conformity with the Plan as amended; and, WHEREAS, the Redeveloper proposes to convert the existing five (5)-story industrial building into approximately two hundred and fifty (250) residential apartments with onsite parking, subject to the approval of the Agency (hereinafter referred to as the “Project”); and, WHEREAS, a committee of the Agency’s Board of Commissioners has reviewed the Proposal and found same to be generally consistent with the intent of and uses set forth in the Plan, as amended; and, WHEREAS, the Redeveloper shall comply with the Plan and/or shall apply to the Planning Board for all necessary variances, approvals and/or permits as may be required under the Plan and/or or may seek amendment of the Plan by request to the Agency and the City. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Passaic Redevelopment Agency that: 1. The above recitations are incorporated herein as if set forth at length; and, 2. Market Street TIC I, LLC is hereby designated as the Redeveloper for the redevelopment of the Property; and, 3. This designation is expressly contingent upon amendment, if necessary, to the Plan and/or variances and approvals from the Planning Board; and, Redevelopment Agency Meeting Minutes October 15, 2020 Page #4 4. This designation is expressly contingent upon the Redeveloper acquiring a controlling interest in the Property, whether it be by either contract purchaser or fee simple owner; and, 5. This designation is expressly contingent upon the Redeveloper providing the Agency with all of the necessary financial documents to perform a full financial evaluation to the satisfaction of the Agency and a determination by the Agency that the Redeveloper is financially qualified to undertake this Project; and, 6. This designation is expressly contingent upon the Redeveloper being responsible for and assuming all costs incurred by the Agency, including, but not limited to legal, appraisal, title, environmental, financial, engineering, etc.; and, 7. This designation is expressly contingent upon the Redeveloper providing all funds for the acquisition, relocation, property maintenance of and demolition, if necessary, at the Property and construction of the proposed Project; and, 8. This designation is based upon the Agency’s previous due diligence into the Redeveloper, including the Redeveloper previously providing the Agency with a non-refundable Application Fee of Ten Thousand Dollars ($10,000.00); and, 9. This designation is expressly contingent upon payment by the Redeveloper to the Agency of an escrow, under the terms of the Interim Costs Agreement, in the amount of Twenty Thousand Dollars ($20,000.00), such escrow fee to be paid within ten (10) calendar days of the execution of the Interim Costs Agreement between the Agency and the Redeveloper; and, Redevelopment Agency Meeting Minutes October 15, 2020 Page #5 10. This designation is expressly contingent upon payment by the Redeveloper to the Agency of a one (1) time non-refundable administrative fee of Fifteen Thousand Dollars ($15,000.00) to be paid within ten (10) calendar days of executing the Interim Costs Agreement between the Agency and the Redeveloper. 11. The Interim Costs Agreement between the Agency and the Redeveloper is approved for signature by the Agency, subject to the final approval of the Agency’s General Counsel and Executive Director; and, 12. Once the Interim Costs Agreement is approved and payments are made by the Redeveloper as required hereunder, the parties will commence the negotiation of a redevelopment agreement, which is subject to review and approval by the Agency and its professionals; and, 13. The designation herein is for a period of ninety (90) calendar days, which period may be extended if necessary at the sole discretion of the Agency’s Executive Director for an additional period of ninety (90) calendar days. Any further extensions require Agency approval. BE IT FURTHER RESOLVED that the Chairman, Vice Chairman and/or Secretary of the Agency are hereby authorized to execute any and all documents necessary to effectuate this Resolution subject to review and approval of the Agency’s General Counsel and Executive Director. INTRODUCED BY: Peter Cedeno-Castro SECONDED BY: Angel Torres For Against Abstain Absent Chair Arthur Soto X Redevelopment Agency Meeting Minutes October 15, 2020 Page #6 Vice Chair Ruth Perez X Commissioner Peter Cedeno-Castro X Commissioner Chaim Munk X Commissioner Kimberly Perez X Commissioner David Spector X Commissioner Angel Torres X Adopted on October 15, 2020 PASSAIC REDEVELOPMENT AGENCY _Original Signature on File_____ Ricardo Fernandez, Executive Director 2021 (2021-2022) AUTHORITY BUDGET RESOLUTION 20-12 Passaic Redevelopment Agency (Name) December 31, FISCAL YEAR: FROM: January 1, 2021 TO: 2021 WHEREAS, the Annual Budget and Capital Budget for the Passaic Redevelopment Agency for the fiscal year beginning, January 1, 2021 and ending, December 31, 2021 has been presented before the governing body of the Passaic Redevelopment Agency at its open public meeting of October 15, 2020; and WHEREAS, the Annual Budget as presented for adoption reflects Total Revenues of $ 10,000, Total Appropriations, including any Accumulated Deficit, if any, of $ 100,000 and Total Unrestricted Net Position utilized of $ 90,000; and WHEREAS, the Capital Budget as presented for adoption reflects Total Capital Appropriations of $-0- and Total Unrestricted Net Position planned to be utilized of $-0-; and Redevelopment Agency Meeting Minutes October 15, 2020 Page #7 WHEREAS, the schedule of rates, fees and other charges in effect will produce sufficient revenues, together with all other anticipated revenues to satisfy all obligations to the holders of bonds of the Authority, to meet operating expenses, capital outlays, debt service requirements, and to provide for such reserves, all as may be required by law, regulation or terms of contracts and agreements; and WHEREAS, the Capital Budget/Program, pursuant to N.J.A.C. 5:31-2, does not confer any authorization to raise or expend funds; rather it is a document to be used as part of the said Authority's planning and management objectives. Specific authorization to expend funds for the purposes described in this section of the budget, must be granted elsewhere; by bond resolution, by a project financing agreement, by resolution appropriating funds from the Renewal and Replacement Reserve or other means provided by law. NOW, THEREFORE BE IT RESOLVED, by the governing body of the Passaic Redevelopment Agency, at an open public meeting held on October 15, 2020 that the Annual Budget, including all related schedules, and the Capital Budget/Program of the Passaic Redevelopment Agency for the fiscal year beginning, January 1, 2021 and ending, December 31, 2021 is hereby approved; and BE IT FURTHER RESOLVED, that the anticipated revenues as reflected in the Annual Budget are of sufficient amount to meet all proposed expenditures/expenses and all covenants, terms and provisions as stipulated in the said Authority's outstanding debt obligations, capital lease arrangements, service contracts, and other pledged agreements; and BE IT FURTHER RESOLVED, that the governing body of the Passaic Redevelopment Agency will consider the Annual Budget and Capital Budget/Program for adoption on December 10, 2020. __Original Signature on File_____________________ ___October 15, 2020____ (Secretary’s Signature) (Date) Governing Body Recorded Vote Member: Aye Nay Abstain Absent Chairman Arthur Soto X Vice Chairman Ruth Perez X Chaim Munk X Peter Cedeno-Castro X Kimberly Perez X David Spector X Angel Torres X Page C-5 Redevelopment Agency Meeting Minutes October 15, 2020 Page #8 CERTIFICATION OF GOVERNING BODY OF THE ANNUAL AUDIT GROUP AFFIDAVIT FORM NO PHOTO COPIES OF SIGNATURES STATE OF NEW JERSEY COUNTY OF Passaic We, members of the governing body of the Passaic Redevelopment Agency in the County of Passaic, being duly sworn according to law, upon our oath depose and say: 1. We are duly appointed members of the Passaic Redevelopment Agency of the City of Passaic in the county of Passaic; 2. In the performance of our duties, and pursuant to N.J.A.C. 5:30-6.5, we have familiarized ourselves with the contents of the Annual Municipal Audit filed with the Clerk pursuant to N.J.S.A. 40A:5-6 for the year 2019; 3. We certify that we have personally reviewed and are familiar with, as a minimum, the sections of the Annual Report of Audit entitled “Comments and Recommendations.” Chairman Arthur Soto Original Signature on File Vice-Chair Ruth Perez Original Signature on File Peter Cedeno-Castro Original Signature on File Chaim Munk Original Signature on File Kimberly Perez Original Signature on File David Spector Original Signature on File Angel Torres Original Signature on File Sworn to and subscribed before me this _________day of ______________ Notary Public of New Jersey __ Original Signature on File ________ Clerk Redevelopment Agency Meeting Minutes October 15, 2020 Page #9 --------------------------------------------------------------------------------------------------------------------- ------ The Municipal Clerk (or Clerk of the Board of Chosen Freeholders as the case may be) shall set forth the reason for the absence of signature of any members of the governing body. IMPORTANT: This certificate must be sent to the Bureau of Financial Regulation and Assistance, Division of Local Government Services, P.O. Box 803, Trenton, New Jersey 08625. Redevelopment Agency Meeting Minutes October 15, 2020 Page #10 PASSAIC REDEVELOPMENT AGENCY REDEVELOPMENT RESOLUTION 20-13 ATTACHED GOVERNING BODY CERTIFICATION OF THE ANNUAL AUDIT INTRODUCED BY: _David Spector____ SECONDED BY: _Arthur Soto____ For Against Abstain Absent Chair Arthur Soto X Vice Chair Ruth Perez X Commissioner Peter Cedeno-Castro X Commissioner Chaim Munk X Commissioner Kimberly Perez X Commissioner David Spector X Commissioner Angel Torres X Adopted on: October 15, 2020 PASSAIC REDEVELOPMENT AGENCY _ Original Signature on File_____ _ Ricardo Fernandez, Executive Director Redevelopment Agency Meeting Minutes October 15, 2020 Page #11 GOVERNING BODY CERTIFICATION OF THE ANNUAL AUDIT FORM OF RESOLUTION WHEREAS, N.J.S.A. 40A:5-4 requires the governing body of every local unit to have made an annual audit of its books, accounts and financial transactions, and WHEREAS, the Annual Report of Audit for the year 2019 has been filed by a Registered Municipal Accountant with the Municipal Clerk pursuant to N.J.S.A. 40A:5-6, and a copy has been received by each member of the governing body; and, WHEREAS, R.S. 52:27BB-34 authorizes the Local Finance Board of the State of New Jersey to prescribe reports pertaining to the local fiscal affairs; and, WHEREAS, the Local Finance Board has promulgated N.J.A.C. 5:30-6.5, a regulation requiring that the governing body of each municipality shall by resolution certify to the Local Finance Board of the State of New Jersey that all members of the governing body have reviewed, as a minimum, the sections of the annual audit entitled “Comments and Recommendations, and, WHEREAS, the members of the governing body have personally reviewed as a minimum the Annual Report of Audit, and specifically the sections of the Annual Audit entitled “Comments and Recommendations, as evidenced by the group affidavit form of the governing body attached hereto; and, WHEREAS, such resolution of certification shall be adopted by the Governing Body no later than forty-five days after the receipt of the annual audit, pursuant to N.J.A.C. 5:30-6.5; and, WHEREAS, all members of the governing body have received and have familiarized themselves with, at least, the minimum requirements of the Local Finance Board of the State of New Jersey, as stated aforesaid and have subscribed to the affidavit, as provided by the Local Finance Board, and WHEREAS, failure to comply with the regulations of the Local Finance Board of the State of New Jersey may subject the members of the local governing body to the penalty provisions of R.S. 52:27BB-52, to wit: R.S. 52:27BB-52: A local officer or member of a local governing body who, after a date fixed for compliance, fails or refuses to obey an order of the director (Director of Local Government Services), under the provisions of this Article, shall be guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one year, or both, in addition shall forfeit his office. Redevelopment Agency Meeting Minutes October 15, 2020 Page #12 NOW, THEREFORE BE IT RESOLVED, That the Redevelopment Agency of the City of Passaic, hereby states that it has complied with N.J.A.C. 5:30-6.5 and does hereby submit a certified copy of this resolution and the required affidavit to said Board to show evidence of said compliance. I HEREBY CERTIFY THAT THIS IS A TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING HELD ON October 15, 2020. _ Original Signature on File_____ Clerk PASSAIC REDEVELOPMENT AGENCY RESOLUTION NUMBER 20-14 Resolution Authorizing the Acquisition and Sale of Property located at 711- 729 Main Avenue, Passaic, New Jersey and Designated on the City’s Tax Maps as Block 2058, Lots 10 and 18 WHEREAS, by Redevelopment Agency Resolution No. 19-23, entered on December 16, 2019, the City of Passaic Redevelopment Agency (hereinafter referred to as the “Agency”) designated AP, Inc. the Redeveloper (hereinafter referred to as the “Redeveloper”) of property located at 711-729 Main Avenue, also known and designated on the City’s Tax Maps as Block 2158, Lots 10 and 18 (hereinafter referred to as the “Property”); and, WHEREAS, on or about August 14, 2020, the Agency and the Redeveloper entered into a Redevelopment Agreement with respect to the redevelopment of the Property; and, WHEREAS, the redevelopment project proposed by the Redeveloper to be constructed on the Property contemplates the construction of a four (4) story, mixed-use building consisting of the following: Redevelopment Agency Meeting Minutes October 15, 2020 Page #13 ▪ Ground Floor – Eight (8) Commercial Units ▪ Second (2nd) Floor – Eight (8) Office Units ▪ Third (3rd) & Fourth (4th) Floors – Fifteen (15) Dwelling Units consisting of one (1), two (2) & three (3) -bedroom units; and, WHEREAS, the Property is currently owned by the New Jersey Schools Development Agency (hereinafter referred to as the “NJSDA”); and, WHEREAS, the NJSDA has agreed to sell the Property to the Agency; and, WHEREAS, immediately after acquiring the Property from the NJSDA, the Agency will then sell the Property to the Redeveloper, who will redevelop the Property in accordance with the Redevelopment Agreement to be entered into between the Agency and the Redeveloper. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Passaic Redevelopment Agency that: 1. The above recitations are incorporated herein as if set forth at length; and, 2. The Agency is hereby authorized to acquire the Property from the NJSDA and to sell same to the Redeveloper for the redevelopment of the Property in accordance with the Redevelopment Agreement; and, 3. This authorization is expressly contingent upon the Redeveloper being responsible for and assuming all costs incurred by the Agency, including, but not limited to legal, appraisal, title, environmental, financial, engineering, etc., with respect to the closings on the Property; and, 4. This authorization is also expressly contingent upon the Redeveloper providing all funds necessary for the acquisition of the Property by the Agency from the NJSDA. Redevelopment Agency Meeting Minutes October 15, 2020 Page #14 BE IT FURTHER RESOLVED that the Agency’s General Counsel and Executive Director are hereby authorized to prepare and execute any and all documents necessary to effectuate this Resolution. INTRODUCED BY: David Spector SECONDED BY: Angel Torres For Against Abstain Absent Chair Arthur Soto X Vice Chair Ruth Perez X Commissioner Peter Cedeno-Castro X Commissioner Chaim Munk X Commissioner Kimberly Perez X Commissioner David Spector X Commissioner Angel Torres X Adopted on October 15, 2020 PASSAIC REDEVELOPMENT AGENCY __ Original Signature on File______ Ricardo Fernandez, Executive Director VIII. CLOSED SESSION No Closed Session Items Redevelopment Agency Meeting Minutes October 15, 2020 Page #15 IX. UPDATES BY EXECUTIVE DIRECTOR RICARDO FERNANDEZ In the last few months the City Council designated a large portion of the eastside of our city as an area in need of rehabilitation, which included all of the downtown business district. As discussed at the last meeting, we talked about the NPP Program, through that program and funding availability we were able to expand some of the work in the area. We are in the process of writing a Redevelopment Plan for the NPP designated areas, and we hope to have in a community meeting to review with City Council and board members sometime next month. After the meeting the plan will go to the City Council for introduction and referral to the Planning Board and then hopefully come back for a second and final reading for the Redevelopment Plan. The railroad is gone! We appreciate all the work from the board members and commissioners for so many years. We are currently on Phase II of the Dundee Island Park project which will connect the two parks. We just received a letter from DEP that the developer requested permits for both of the sites. We hope to have constructions starting in the Spring of next year. The IDIL Logistics project at the former Pantasote site in under construction and has the potential to be complete in approximately 18 months from now. XI. ADJOURNMENT Moved: David Spector Seconded: Peter Cedeno-Castro For: 4 Against: 0 Abstain: 0 Not Present: 3 Respectfully Submitted, Original Signature on File Asenett Martin Secretary