CITY OF PASSAIC
RESOLUTION NO. __________
RESOLUTION AUTHORIZING SALE OF VARIOUS
REAL PROPERTY IN THE CITY OF PASSAIC
WHEREAS, the
City owns or anticipates owning through municipal in-rem tax foreclosures, or
owns through other means, the properties attached hereto; and
WHEREAS,
N.J.S.A. 40A:12-13 authorizes a municipality to sell any real property not
needed for public use by open public sale at auction to the highest bidder; and
WHEREAS, it has
been determined that the listed properties are no longer needed for public
purposes and therefore the City Council has fixed a minimum price for these
properties as indicated on the attached list; and
WHEREAS,
N.J.S.A. 40a:12-13.2 requires that adjoining property owners to vacant lots,
which are less than the minimum size required by zoning, be given the right of
prior refusal to purchase these properties.
NOW THEREFORE BE IT RESOLVED, by the
City Council of the City of Passaic that the Council authorizes the sale of the
properties on the attached list subject to the conditions listed herein and the
minimum bid price is indicated, with the right of prior refusal of adjacent
property owners for vacant undersized lots.
The Council reserves the
right to reject all bids where the highest bid is not accepted.
NOW THEREFORE BE IT FURTHER
RESOLVED, that the Council authorizes the Mayor and City Clerk to
execute any and all needed amendments, contracts, deeds, and all other
necessary documents to implement the sales of these properties.
NOW THEREFORE BE IT FURTHER
RESOLVED, that the following is the list of properties to be sold:
1. 235
Broadway, Block 3228, Lot 6 ***Redeemed. It will not be auctioned***
No right
of First Refusal
Minimum
Bid $1,000
2. 253
Burgess Street, Block 2190, Lot 30
No Right
of First Refusal
Minimum
Bid $1,000
3. 386
Monroe Street, Block 2172A, Lot 13
No Right
of First Refusal
Minimum
Bid $1,000
4. 67
Hammond Avenue, Block 2196, Lot 59 ***Redeemed.
It will not be auctioned***
No Right
of First Refusal
Minimum
Bid $1,000
5. 417
Harrison Street, Block 2178, Lot 49
Right of
First Refusal
Minimum
Bid $1,000
6. 305
Highland Avenue, Block 4103, Lot 38 ***Redeemed.
It will not be auctioned***
No Right
of First Refusal
Minimum
Bid $1,000
7. 76-78
Lafayette Avenue, Block 3228, Lot 33A
Right of
First Refusal
Minimum
Bid $100
8. 34 Lucile
Place, Block 2172A, Lot 18 ***Redeemed.
It will not be auctioned***
Right of First Refusal
Minimum
Bid $1,000
9. 36 Lucile
Place, Block 2172A, Lot 19 ***Redeemed.
It will not be auctioned***
Right of
First Refusal
Minimum
Bid $1,000
10. 38 Lucile
Place, Block 2172A, Lot 20 ***Redeemed.
It will not be auctioned***
Right of
First Refusal
Minimum
Bid $1,000
11. 381
Madison, Block 2200, Lot 31
Right of
First Refusal
Minimum
Bid $1,000
12. 936 Main
Avenue, Block 4103A, Lot 17
No Right
of First Refusal
Minimum
Bid $1,000
13. 944 Main
Avenue, Block 4103A, Lot 21
No Right
of First Refusal
Minimum
Bid $1,000
14. 64 Market
Street, Block 1041, Lot 31
Right of
First Refusal
Minimum
Bid $1,000
15. 66 Market
Street, Block 1041, Lot 29
Right of
First Refusal
Minimum
Bid $1,000
16. 41-47
Orth Street, Block 3309, Lot 25
Right of
First Refusal
Minimum
Bid $100
17. 8 Rosz
Place, Block 4091, Lots 24.A
No Right
of First Refusal
Minimum
Bid $1,000
18. 19
Sherman Street, Block 4069, Lot 11 ***Redeemed.
It will not be auctioned***
No Right
of First Refusal
Minimum
Bid $1,000
19. 82 Third
Street, Block 1012.A, Lot 13
No Right
of First Refusal
Minimum
Bid $1,000
20. Westervelt,
Block 3256, Lot 76
Right of
First Refusal
Minimum
Bid $100
21. 34-36 Aspen
Place, Block 1080, Lot 30
No Right
of First Refusal
Minimum
Bid $1,000
22. 265
Passaic Street, Block 1080 Lot 3
No Right
of First Refusal
Minimum
Bid $1,000
23. 295 Main
Avenue, Block 3258, Lot 42
No Right
of First Refusal
Minimum
Bid $1,000
NOW THEREFORE BE IT FURTHER
RESOLVED, the following terms and conditions shall apply to the
sale of the above listed properties:
Standard Conditions of Sale
1.
City Council Approval of Successful Bid. The successful bid is subject to acceptance
or rejection by the CITY OF PASSAIC that shall occur no later than the second
regular Council Meeting following the auction sale. The CITY OF PASSAIC reserves the right to reject the successful
bid. If no action is taken by the CITY
OF PASSAIC as of such second meeting the successful bid will be deemed
rejected.
2.
10% Non-Refundable Deposit. The successful bidder will be required to
deposit 10% of his or her bid with the CITY OF PASSAIC at the time of the
auction. This amount shall include a
certified check, treasurer’s check, bank check, cash or money order in the
amount equal to 10% of the sales selling price.
The
deposit made by the successful bidder is non-refundable. The successful bidder is not entitled to a refund
of this deposit in any case, except where the CITY OF PASSAIC cannot deliver
marketable title. The risk of loss
of the deposit is on the successful bidder.
3.
Environmental Issues
a. The CITY OF PASSAIC makes no representations or warranties
as to the environmental soundness of any properties on the list of
properties. The successful bidder will
take title to the Property “as is, where is.”
b. Compliance
with Environmental Requirements. The
successful bidder of any property shall comply with applicable rules and
regulations of the New Jersey Department of Environmental Protection (NJDEP)
regarding any environmental investigation and remediation at the property. Some of the properties on the list of
properties may be subject to the Industrial Site Recovery Act (ISRA), the Spill
Compensation and Control Act and the Water Pollution Control Act.
4.
Indemnification. The successful bidder agrees to indemnify
and hold the CITY OF PASSAIC harmless with respect to all liability related to
any environmental matters arising from the sale and or ownership of any
property on the list of properties.
5.
Closing. Closing shall occur within (90) days after
the City Council accepts the bid. Time
is of the essence.
a. Place of closing. Closing shall take place at the CITY OF PASSAIC offices located
at City Hall, Passaic, New Jersey, between the hours of 9:00 a.m. and 4:00
p.m., but if the last day for closing falls on a Saturday or legal holiday or a
day on which the offices are closed, then title shall close on the following
day.
b. Closing Costs. The successful bidder shall be required to pay legal fees for the
City attorney for the sale of this property.
c. Marketable
Title. The CITY OF
PASSAIC shall convey marketable title to the successful bidder at closing. If the CITY OF PASSAIC is unable to convey
marketable title at closing, then closing can be extended an additional thirty
(30) days if the successful bidder agrees to the extension. If the successful bidder does not agree,
then he or she may terminate the sale and the deposit shall be refunded,
without interest.
d. Unmarketable Title. If title to property shall prove to be unmarketable, the
liability to the CITY OF PASSAIC shall be limited to the repayment to the
successful bidder of the amount of his deposit, without interest, and without
further costs, expenses, damages or claims.
Notice of any alleged defect in title or claim of unmarketability shall
be given to the CITY OF PASSAIC in writing no more than thirty (30) days after
the date the City Council approves the sale.
Failure to give such notice shall be conclusive evidence that the
successful bidder accepts the title in its present condition.
e. The sale of this property is subject to the forty-five (45)
day time period within which it is possible that the foreclosure judgment can
be reopened pursuant to statute. If the
judgment is vacated, the City will return to the successful bidder the amount
of his deposit, without interest and costs.
Buyer shall have no rights against the CITY OF PASSAIC with regard to
the failure to sell the property due to a reopening of the foreclosure judgment
and no sale shall occur prior to the end of the forty-five (45) day time period
from the date of judgment of foreclosure.
6.
Future Tax Liability. Tax liability on the Property begins the day
following the date of closing.
7.
Bidders Must Appear in Person. All bidders must appear in person at the
auction and upon becoming the successful bidder must present identifying credentials
and complete and identification certification.
a. Corporation. A person bidding on behalf of a corporation,
upon becoming the successful bidder, must present a certificate of
incorporation and a letter of authorization from the corporation.
b. Partnership. A person bidding on behalf of a partnership,
or using a trade name, upon becoming the successful bidder, must submit a copy
of the certificate of trade name (partnership) and a letter of authorization
from other partner(s). No other bidder
may submit a bid on behalf of another except that a husband and wife may submit
a bid on behalf of both.
8.
Deed. All Conveyances
shall be by quit claim deed. The
successful bidder shall beat the
cost of recording the deed.
9.
No use of Sale Price for Other Purposes. The sale price as may result from this
auction may not be used before any County Board of Taxation, State Board of Tax
Appeals or any other Court in this State to challenge the assessment with
respect to the subject Property and may not be used as a comparable sale
challenging the assessment with regard to other properties.
10.
Riparian. This sale is also subject to the further
condition that if the State of New Jersey or any upland owners has any rights
or claim to the land being sold herein by reason of Riparian Interest or
otherwise, and charges levied or so levied by the State of New Jersey or upland
owner be from said Riparian Interests or otherwise, are to be borne by the
successful bidder, in addition to the successful bid price bid by the
successful bidder.
11.
No Modification to Sale
Conditions. All prospective
successful bidders are put on notice that no employee, agent or officer of the
CITY OF PASSAIC has authority to waive modify or amend any of the conditions of
sale.
12.
Due Diligence Presumed. It is conclusively presumed that the bidder
prior to making his bid has done the following: (a) checked the exact location
including the correct street address and the lot size of the Property on the
official tax maps which are available at City Hall and (b) made a personal
inspection of the Property prior to bidding.
Responsibility for failure to comply with the above mentioned guidelines
would be fully assumed by the successful bidder.
13.
Limitation on Conveyance. The successful bidder may not convey “environmentally impaired”
Property for a period of two (2) years from the date of closing title unless
environmental cleanup has occurred to the satisfaction of the NJPED and the
Department has issued the successful bidder a No Further Action (NFA) letter
with respect to the Property.
14.
Material Breach. A failure by the successful bidder to fully
comply with the terms and conditions of the sale as herein contained shall be
considered at the option of the CITY OF PASSAIC a material breach of the
conditions of sale, where upon the CITY OF PASSAIC may declare said contract of
purchase terminated and at an end. All
monies paid on behalf of the purchase price may be retained as liquidated
damages, and the CITY OF PASSAIC may sell the Property and or purse other and
further legal and/or equitable remedies as it may have and the defaulting
successful bidder shall continue to remain liable for all damages and losses
sustained by the CITY OF PASSAIC as a
result of such default.
a. Right of
Reversion. The CITY OF
PASSAIC will have the right to seek a reversion of title where the successful
bidder fails to comply with the conditions of the sale. This right of reversion shall be included in
a clause contained in the deed of conveyance.
In order for the CITY OF PASSAIC to reacquire the Property an action
must be instituted within two (2) years from the date of closing. The reversionary right shall be deemed
extinguished if the CITY OF PASSAIC fails to institute an action within this
specified time period.
b. The CITY OF PASSAIC is selling the Property and buildings
or structures located on the property in “as is” condition. The City is not responsible for the
condition of any of the properties or structures that are sold.