[MC 2016-17, December 12, 2016]
The City Council of the City of Plainfield (the "City Council")
has designated certain real property within the City of Plainfield
(the "City") as areas in need of redevelopment (together with any
properties so designated after the adoption of this Ordinance, the
"Redevelopment Areas") pursuant to the Local Redevelopment and Housing
Law, N.J.S.A. 40A:12A-1 et seq. (the "Redevelopment Law").
The City Council has designated certain real property within
the City as an area in need of rehabilitation pursuant to the Redevelopment
Law (together with any properties so designated after the adoption
of this Ordinance, the "Rehabilitation Areas").
The City Council has duly adopted redevelopment plans governing
one or more of the Redevelopment Areas and/or the Rehabilitation Areas
(together with any redevelopment plans so enacted after the date of
this Ordinance, the "Redevelopment Plans").
Pursuant to Section 8 of the Redevelopment Law, the City may
collect revenue from a prospective developer to defray the costs of
the City acting as the redevelopment entity.
Pursuant to Section 16 of the Redevelopment Law, in order to
effectuate low or moderate income housing projects (regardless of
whether or not such housing projects are within areas in need of redevelopment
or areas in need of rehabilitation), the City may (i) receive and
accept funds or other financial assistance, (ii) cooperate with a
private entity to construct, rehabilitate or operate publicly assisted
housing, (iii) provide technical assistance and support to private
developers interested in constructing low and moderate income housing,
and (iv) enter into all contracts and agreements necessary or incidental
to the performance of the duties authorized by the Redevelopment Law.
The City has received, and anticipates continuing to receive,
applications and/or proposals (each an "Application") for the redevelopment
of property located within the Redevelopment Areas (or the Rehabilitation
Areas) and subject to the Redevelopment Plans, or for the development
of low or moderate income housing projects, submitted by proposed
developers (each a "Prospective Developer") to the City for review
and consideration (as described in each such Application, the "Project").
The City desires to enter into negotiations with Prospective
Developers, for (i) a redevelopment agreement and/or (ii) an agreement
for long or short term financial assistance, as may be applicable
or appropriate for each respective Project (each an "Agreement").
Each Prospective Developer shall defray certain costs incurred
by or on behalf of the City arising out of or in connection with the
discussions and negotiations associated with an Agreement, and the
City desires to establish a mechanism whereby it can enter into escrow
agreements governing the deposit and disposition of funds to cover
the City's costs.
[MC 2016-17 § 1, December 12, 2016]
The aforementioned recitals are incorporated herein as though
fully set forth at length.
[MC 2016-17 § 2, December 12, 2016]
Where (a) the City has designated a Rehabilitation Area or a
Redevelopment Area, and has adopted a Redevelopment Plan for such
area, or (b) where a low or moderate income housing project is proposed,
the City Council hereby authorizes the Mayor, in consultation with
Corporation Counsel, to negotiate and execute an escrow agreement,
substantially in the form attached hereto as Exhibit A (the "Form
Escrow Agreement") with such changes, deletions, and modifications
as may be necessary or desirable to effectuate the transaction contemplated
therein, to offset any and all professional or out of pocket costs
incurred by the City with respect to the review of any such proposed
project, and the negotiation of one or more Agreements. Entry into
an escrow agreement does not assure any prospective developer of any
particular result and does not bind the City to entering into any
redevelopment agreement, tax agreement or financial agreement.
Editor's Note: Exhibit A may be found on file in the City offices.
[MC 2016-17 § 3, December 12, 2016]
The City Council hereby authorizes the Mayor to determine the
total amount of escrow funds to be deposited pursuant to the Escrow
Agreement (the "Deposit"), the initial deposit of which shall be an
amount not less than Ten Thousand Dollars ($10,000.00) for the purpose
of negotiating a redevelopment agreement, or Fifteen Thousand Dollars
($15,000.00) for the purpose of negotiating a financial agreement
or tax agreement, and may be more than said amount if he determines,
in consultation with Corporation Counsel, the Director of Economic
Development, and/or special redevelopment counsel that such higher
amount is necessary or desirable with respect to a particular project.