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Resolution of the Mayor and Council of Princeton Authorizing the Submission of an Application to the New Jersey Department of Environmental Protection for Grant Funding from the Hazardous Discharge Site Remediation Fund Grant Program in the Amount of $983,126.36 to Reimburse Terhune Development Urban Renewal for Costs Incurred in Remediating Areas Dedicated to the Municipality of Princeton on the Property Located at 365 Terhune Road (Block 7404, Lot 1.02)
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WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1, et seq., as amended and supplemented (the “Redevelopment Law”), provides a process for municipalities to participate in the redevelopment and improvement of areas designated as being in need of redevelopment; and
WHEREAS, on April 27, 2021, the Mayor and Council of the Municipality of Princeton (the “Governing Body”) approved Resolution No. 21-156 to designate, in part, the real properties identified as Block 7401, Lots 1.02 and 1.012 (collectively, the “Redevelopment Property”), as an area in need of redevelopment in accordance with the Redevelopment Law; and
WHEREAS, on June 14, 2021, the Governing Body approved Ordinance #2021-15 to adopt the redevelopment plan, entitled Harrison/Terhune Redevelopment Plan (the “Redevelopment Plan”) for the Redevelopment Property; and
WHEREAS, on August 16, 2022, the Municipality of Princeton (the “Municipality”) entered into a redevelopment agreement, pursuant to the Redevelopment Law, with Terhune Development Urban Renewal LLC (the “Redeveloper”) to provide for the redevelopment of the Redevelopment Property (the “Redevelopment Agreement”); and
WHEREAS, the Redevelopment Agreement required the Redeveloper to develop, finance, remediate, and construct on the Redevelopment Property a multi-family residential apartment building, consisting of 100 market rate rental units and 25 affordable housing units (the “Project”); and
WHEREAS, the Redevelopment Agreement also required the Redeveloper to dedicate to the Municipality certain portions of the Redevelopment Property, together with all future improvements thereon, for the use and benefit of the public, which include a dog park, shopping center driveway connection, community park, natural plaza and Terhune Road improvement area, totaling 0.809 acres (collectively, the “Public Areas”); and
WHEREAS, the Redeveloper dedicated the Public Areas to the Municipality by easement agreement, dated February 7, 2023, which easement agreement was recorded in Book 6515, Page 437 of the Mercer County Clerk’s Office on February 15, 2023; and
WHEREAS, the Redeveloper encountered unanticipated contaminated historic fill on the Redevelopment Property, including within the Public Areas, during the construction of the Project, which required the Redeveloper to incur additional costs in completing the necessary preliminary assessments, site investigations, remedial investigations and remedial actions to allow for the removal of the contaminated historic fill from the Redevelopment Property, including the Public Areas; and
WHEREAS, the New Jersey Department of Environmental Protection (the “NJDEP”), through the Hazardous Discharge Site Remediation Fund Grant Program (the “HDSRF”), provides grant funds to municipalities for the purpose of funding remediation activities on properties that have been designated for redevelopment under a redevelopment plan and are intended to be used for public recreation purposes; and
WHEREAS, the Municipality desires to file an application with the NJDEP to request funding from the HDSRF in the amount of $983,126.36; and
WHEREAS, the Municipality intends to use the grants funds, if awarded, to reimburse the Redeveloper for the costs incurred in pursuing remedial actions in the Public Areas; and
WHEREAS, the Municipality’s approval of this Resolution and the submission of the grant application shall not constitute, or be construed as, an authorization for the expenditure of municipal funds, the incurrence of municipal debt, the issuance of municipal bonds, or the guaranty of any financial obligation by the Municipality to the Redeveloper; and
WHEREAS, the Governing Body finds that the submission of an application for grant funding under the HDSRF is in the public interest and hereby authorizes the submission of the grant application attached hereto as Exhibit A to the NJDEP for funding from the HDSRF.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of Princeton, in the County of Mercer and State New Jersey as follows:
1. The Mayor and Council of Princeton hereby approve and consent to the submission of the grant application, substantially in the form annexed to this Resolution as Exhibit A, subject to minor, non-substantive revisions as deemed necessary by the Municipality’s counsel and the Municipality’s redevelopment counsel, to the New Jersey Department of Environmental Protection to request grant funding in the amount of $983,126.36 from the Hazardous Discharge Site Remediation Fund Grant Program to reimburse the Redeveloper for the costs incurred in pursuing remedial actions in the Public Areas located at 365 Terhune Road, Princeton, New Jersey.
2. The Mayor and Council of Princeton hereby agree, subject to the limitations contained herein, to accept grant funding issued in connection with the grant application from the Hazardous Discharge Site Remediation Fund Grant Program.
3. The Mayor is hereby authorized and directed to enter into and execute, subject to the review and approval of the Municipality’s counsel and the Municipality’s redevelopment counsel, any and all agreements and/or documents, which are consistent with this Resolution, required by the NJDEP to receive and expend the grant award to reimburse the Redeveloper for the costs incurred in pursuing remedial actions in the Public Areas located at 365 Terhune Road, Princeton, New Jersey.
4. No municipal funds are required for receipt or acceptance of this grant award.
5. A copy of this Resolution, grant application, grant award letter and grant agreement shall be kept on file in the Office of the Clerk.