Public Notice:
TOWNSHIP OF WEEHAWKEN HUDSON COUNTY, NEW JERSEY AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FINANCIAL AGREEMENT RELATED TO CONSTRUCTION OF A HOTEL ON BLOCK 64.01, LOT 3.02 IN FOR PORT IMPERIAL SOUTH ORDINANCE #16-2013 WHEREAS, pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., the Township designated an approximately 23.518-acre portion of the planned development known as Port Imperial South, being delineated on the official Tax Map of the Township of Weehawken, Hudson County, New Jersey as Block 36.05, Lot 1.01 and Block 64.01, Lots 1.02, 1.03, 1.04, 1.05, 1.06, 1.07, 3.02, and 3.03 (the “Redevelopment Area”), as an area in need of redevelopment and adopted a redevelopment plan for the Redevelopment Area (“Redevelopment Plan”); and WHEREAS, XSS, L.L.C., a nationally prominent, experienced hotel developer, has proposed to develop and construct an approximately 221-room Renaissance Hotel and an approximately 154-room Residence Inn Extended Stay Hotel (the hotel uses, together, being referred to as the “Project”), consistent with the Redevelopment Plan, on Block 64.01, Lot 3.02 within the Redevelopment Area (the “Land”); and WHEREAS, under the Redevelopment Plan and the approvals for Port Imperial South, the Land is to be developed as a mixed use commercial facility including space for interior parking, retail uses, and ultimately hotel uses, and the parking and retail spaces having already been constructed, the current proposal by XSS, L.L.C. fulfills the Port Imperial South planned development and completes development of the Land as contemplated in the Redevelopment Plan; and WHEREAS, the Project will be developed within air space defined and designated for hotel use in that certain Master Deed, as amended, creating and governing a commercial condominium regime with respect to the Land (the “Condominium);” and WHEREAS, XSS, L.L.C. will create an affiliated urban renewal entity pursuant to N.J.S.A. 40A:20-1 et seq. (“PILOT Law”) to develop the Project (the “Entity”), and the Entity will enter into a redevelopment agreement with the Township setting forth the terms and conditions under which the Entity agrees to develop the Project; and WHEREAS, the PILOT Law authorizes the Township to accept annual service charges or payments in lieu of regular property taxes (i.e., PILOTs) with respect to improvements made within an area in need of redevelopment and the Mayor and Council have determined that it is appropriate to do so for a term of fifteen (15) years with respect to the Project; and WHEREAS, pursuant to the PILOT Law, the Mayor and Council have received and reviewed a certain application for a PILOT Agreement with respect to the Project improvements (the “Application”), including data on the Project and a proposed form of financial agreement, and finding that the Application satisfies the submission requirements of the PILOT Law and that the Project is consistent with the Redevelopment Plan, have adopted a Resolution approving the Application; and WHEREAS, the parties have discussed and negotiated the proposed form of financial agreement, a copy of which is dated November 25, 2013 and is on file with the Township Clerk, and the Mayor and Council have determined that it is appropriate to approve the execution of a financial agreement with the Entity substantially in the form on file with the Township Clerk; and WHEREAS, the Mayor and Council make the following findings with respect to the relative benefits of the Project to the redevelopment of the Redevelopment Area when compared to the costs, if any, associated with the tax exemption: a. The tax exemption will benefit the Township and its inhabitants by implementing the Redevelopment Plan and, thus, furthering the redevelopment of the Redevelopment Area, which had been an unproductive and vacant property for many years. The Land had remained undeveloped until the recent construction of the parking and retail structure thereon. The development of a hotel in conjunction with the newly developed parking and retail improvements will complete the redevelopment of this formerly vacant and fallow area. b. The Township’s review and analysis indicate that the benefits of the Project outweigh any costs to the Township. c. The Project will contribute to the economic growth of existing local businesses and to the creation of new businesses which will cater to the residents of the Project and the other residents of the Township. d. The stabilization of the real estate taxes for the Project is a critical component to its developability and the Mayor and Council are satisfied that the PILOT Agreement is an important component of the Project. e. The proposed development will generate significant municipal revenues and new business activities to Weehawken, and will provide a facility that can accommodate events for up to 750 people which will be a positive feature for many Township residents who seek to take advantage of that opportunity. f. The availability of the tax exemption is important for attracting the required financing to the Project. The total project cost is estimated to be approximately $105,000,000. Without the PILOT Agreement, it would be difficult to attract the required construction and permanent financing that are needed to develop this project. g. It is expected that the Project will create approximately jobs during construction and 150 new permanent jobs. h. It is not anticipated that there will be any large or extraordinary municipal costs associated with the Project, since all of the municipal services and infrastructure necessary to support this development are currently in place and available. WHEREAS, the Mayor and Council assess the importance of the financial agreement in obtaining development of the Project and influencing the locational decisions of probable occupants as follows: a. The relative stability and predictability of the service charges is considered to have been significant in attracting the interest of XSS, L.L.C., a nationally recognized hotel developer, in developing the Project at this location. It will allow the Entity to stabilize its expenses, which will insure the likelihood of the Project’s success and ensure that it will have a positive impact on the surrounding area. b. The Land is part of what was once a large rail transport facility. This 2.037 acre site has already undergone environmental remediation and the installation of basic improvements and infrastructure, the cost of which is shared by all units of the Condominium. The tax exemption will ameliorate these costs, which if not shared by the Project, would have made development of the Land economically unfeasible; and WHEREAS, as recited above, the Entity to be created by XSS, L.L.C. will be entering into a redevelopment agreement pursuant to which it will assume the obligations associated with developing the Project, and therefore, this Ordinance is contingent upon the timely and satisfactory occurrence of the following: a. Creation of the Entity in compliance with the PILOT Law; and b. Execution of an appropriate redevelopment agreement; and WHEREAS, because the Township owns a parking unit in the Condominium, with appurtenant rights pursuant to the Condominium documents and a certain Operating Agreement dated as of March 31, 2011, and because certain amendments to the Master Deed, Bylaws and Plans for the Condominium are anticipated, this Ordinance is further contingent upon the Township’s satisfactory review of (a) any amendments to the Condominium documents, and (b) the impact of the transfer of the Hotel Unit on the Township’s rights under the Operating Agreement, in order to confirm that the amendments and/or the transfer does not adversely affect the Township’s representation in the Condominium, the terms of the existing PILOT agreement or Operating Agreement, or the parking tax and other revenues generated by the existing parking uses. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Township of Weehawken, County of Hudson and State of New Jersey as follows: Section 1. The findings set forth above are hereby adopted and made part of this Ordinance. Section 2. Pursuant to the authority granted under the PILOT Law, N.J.S.A. 40A:20-1 et seq., this Ordinance authorizes the execution of a financial agreement with the Entity with respect to the improvements constituting the Project, generally comprising an approximately 221-room Renaissance Hotel and an approximately 154-room Residence Inn Extended Stay Hotel, within the Condominum located on Block 64.01, Lot 3.02, as shown on the official tax maps of Weehawken Township. Section 3. The Mayor is authorized to execute the financial agreement in substantially the form dated November 25, 2013 and on file with the Township Clerk, upon the Entity’s demonstrating, to the satisfaction of the Township’s legal counsel, that it has been properly created under the laws of the State of New Jersey and subject to the satisfaction of the following additional conditions: a. Execution of an appropriate redevelopment agreement; and b. The Township’s satisfactory review of (a) any amendments to the Master Deed, Bylaws, or Plans for the Condominium, and (b) the economic impact of the transfer of the Hotel Unit on the Township’s rights under the Operating Agreement, in order to confirm that neither the amendments nor the transfer adversely affects the Township’s representation in the Condominium, the terms of the existing PILOT agreement and/or Operating Agreement, or the parking tax and other revenues generated by the existing parking uses. Section 4. The financial agreement herein authorized shall be subject to all requirements of the PILOT Law and all applicable federal, State and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provision, zoning, planning and building code requirements. The foregoing Ordinance was adopted for first reading by the Township Council of the Township of Weehawken, New Jersey, on November 25th , 2013 and ordered published, and will be further considered before final passage at a public hearing on January 8th 2014, at 7 p.m. at the Council Chambers, Municipal Building, 400 Park Avenue, Weehawken, New Jersey. A copy of this Ordinance has been posted on the bulletin board upon which public notices are customarily posted on in the Town Hall of the Town of Weehawken, and a copy (at no charge) is available up to and including the time of such meeting to the members of the public of the Town who shall request such copies, at the Office of the Town Clerk in said Town Hall in Weehawken, New Jersey. Rola Dahboul Township Clerk 12/31/13 $184.33
