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Urban Renewal Agency Designated Redeveloper Process

On August 26, 2014, the Urban Renewal agency adopted a new policy for designating redevelopers for urban renewal projects.  The process, as described in the legislation, is as follows:

 City of Mount Vernon Urban Renewal Agency Redeveloper Requirements & Designation Procedures Policy

 The City of Mount Vernon Urban Renewal Agency (“URA”) has adopted the following procedures for the sale, lease, or other disposition of any land or buildings owned by the URA which dispositions shall be made in compliance with Article 15-A of the General Municipal Law of the State of New York (“GML”). 

 

I. Disposition of URA Land to Redeveloper who Independently Comes to URA or Who has Previously Been Identified by URA

 The sale, lease, or other disposition of URA-owned property without auction or bid to a person, firm or corporation approved by the URA as a “Qualified and Eligible Sponsor” shall comply with the requirements of New York General Municipal Law § 507(2).

 Where a redeveloper has independently come forward with a project application to the URA, or where a redeveloper has been identified previously by the URA, the redeveloper shall submit to the URA (i) a comprehensive Redeveloper Statement containing such information as the URA shall reasonably deem necessary so as to evaluate the proposal and (ii) proposed redevelopment plans (“Proposed Redevelopment Plans”) for the proposed project. 

 1.  The Redeveloper Statement shall contain:

 Such information as the URA reasonably deems necessary in assisting the URA to determine the ability of the developer to undertake and complete the proposed project.  Such information shall include, but is not limited to: (i) the company’s financial history demonstrating the financial capability to undertake and complete the project; (ii) developer experience in successfully undertaking and completing projects of a similar size and/or scope; and (iii) proposed redevelopment plans for the use or reuse of the Urban Renewal Area or a portion thereof which proposed redevelopment plans shall be in furtherance of the objectives of Articles 15 and 15-A of GML.

 2.  The proposed redevelopment plan shall:
 Conform to the existing Urban Renewal Plan adopted by the URA, for the area in which the proposed project would be developed and shall conform to the City’s zoning, long range planning strategy and/or Comprehensive Plan. 

 If the redeveloper is seeking amendments to the existing Urban Renewal Plan and/or zoning or Comprehensive Plan, the redeveloper shall expressly state what amendment(s) to the Urban Renewal Plan and/or zoning would be required by for the development. 

 The URA shall review the Redeveloper Statement for completeness and may require additional information from the potential sponsor as necessary, until the URA is satisfied with the completeness of information.

 

II. Disposition of URA Land to Redeveloper by RFP

  If the URA is seeking a redeveloper, a Request for Proposals (“RFP”) shall be published by the URA identifying the project and goals to be accomplished.   Notice of such RFP shall be published on the City’s website as well as in at least one (1) of the following newspapers in general circulation: (a) The Journal News and/or (b) any other newspaper designated as the Official Newspaper of the City of Mount Vernon. 

 The RFP shall include a directive for all potential redevelopers to submit to the URA a comprehensive Redeveloper Statement.  The Redeveloper Statement shall contain:

 Such information as the URA reasonably deems necessary in assisting the URA to determine the ability of the developer to undertake and complete the proposed project.  Such information shall include, but is not limited to: (i) the company’s financial history demonstrating the financial capability to undertake and complete the project; (ii) developer experience in successfully undertaking and completing projects of a similar size and/or scope; and (iii) proposed redevelopment plans for the use or reuse of the Urban Renewal Area or a portion thereof which proposed redevelopment plans shall be in furtherance of the objectives of Articles 15 and 15-A of GML.

 Responses received shall be reviewed by the URA and the URA may require additional information from the potential sponsor as the URA reasonably deems necessary, until the URA is reasonably satisfied with the completeness of information.

 The URA shall make a determination of which potential redeveloper best fulfills the goals of the Urban Renewal Plan and long range planning strategy and/or City’s Comprehensive Plan, as well as other applicable considerations pursuant to state law.  The URA shall thereafter refer its recommendation to the City Council for its review and approval as required by GML.

 

III. Designation of Redeveloper

 Only after identifying a redeveloper, in compliance with the policies and procedures highlighted in either Article I or Article II above, the URA may then designate the redeveloper as a “Qualified and Eligible Sponsor” pursuant to GML § 507(2) which designation shall be referred to the City Council for its review and approval.

 

IV.  Covenants Running with the Land and Conditions of Sale

 Following such designation, and approval of City Council as necessary, the URA may sell, lease, or other disposition of URA-owned property to the Redeveloper approved by the URA as a “Qualified and Eligible Sponsor”.  Such disposition shall be subject to the following terms and conditions.

 1.  The properties sold, leased or otherwise disposed of in conformance with the Property Rehabilitation Standards and objectives of the Urban Renewal Plan.
 
2.  There shall be a requirement, whether as a reversionary interest in the land if disposed of by sale or as a leasehold condition, that the project be completed within a time agreed upon by the URA and the Redeveloper.  Any failure by the Redeveloper to so complete the project, after all applicable cure periods have expired, shall result in (a) the land sold to the Redeveloper reverting to the URA or (b) the leasehold interest in the land held by the Redeveloper being terminated.    

 3.  Any land sold, leased or otherwise disposed of to the “Qualified and Eligible Sponsor” shall contain a covenant running with the land which shall bind the Redeveloper and any successor or assign as well as any leasehold tenants which covenant shall prohibit restrictions in the sale, lease or occupancy of any real property so conveyed on the basis of race, creed, religion, color, gender, age, national origin, ethnicity, alienage or citizenship status, disability, marital status, sexual orientation, familial status, genetic predisposition or carrier status.  

 4. The URA and “Qualified and Eligible Sponsor” shall negotiate a sale price which shall be in compliance with GML.

 5. If approved, the URA shall direct publication of a notice of sale in at least one (1) of the following newspapers in general circulation: (a) The Journal News and/or (b) any other newspaper designated as the Official Newspaper of the City of Mount Vernon.  The notice shall comply with GML in all respects. 

 6. If CDBG or HOME Funds are involved, the URA shall contact HUD to obtain approval of price and shall comply with any and all policies, procedures and regulations of HUD regarding such sale.

 7. The sale of URA land shall be subject to City Council approval which approval must follow a public hearing which hearing shall be held not less than ten (10) days after the publication of notice.  Publication shall be made on the City’s website and in at least one (1) of the following newspapers in general circulation: (a) The Journal News and/or (b) any other newspaper designated as the Official Newspaper of the City of Mount Vernon.

  

For a copy of the legislation, please click on the link below: 

Urban Renewal Agency Designated Redeveloper Legislation

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