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Salem council authorizes redevelopment agreement and introduces ordinance to sell Linden Street parcels for six homes aimed at first-time buyers

City of Salem Common Council Caucus · September 9, 2024
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Summary

Council introduced Ordinance 24-27 and adopted Resolution 2024-233 authorizing a purchase-and-sale and redevelopment agreement with the Cumberland County Improvement Authority to sell multiple City-owned lots (Block 70 and Block 71) for $25,000 and build six single-family homes for low- and moderate-income first-time buyers; a public hearing on the ordinance is Oct. 15.

The Salem Common Council on Sept. 9 introduced an ordinance and adopted a resolution to move forward with the sale and redevelopment of several City-owned parcels on Linden Street.

Under Ordinance 24-27 and the companion Resolution 2024-233, the City will negotiate a purchase-and-sale agreement with the Cumberland County Improvement Authority (the "Redeveloper") for Block 70 (Lots 30, 33, 35, 36.01 and 36.02) and Block 71 (Lots 6 and 28). The ordinance sets the sale consideration at $25,000 and contemplates subdividing the site into six developable parcels and constructing six three-bedroom single-family homes to be sold to low- and moderate-income first-time homebuyers in accordance with the City's redevelopment plan.

"The City will be selling to a redeveloper under the redevelopment law," Solicitor Ranieri told the meeting during a public-question exchange about the ordinance. The council approved Resolution 2024-233 by roll call, with all members present voting yes.

The ordinance was introduced (first reading) on Sept. 9; the public hearing and second reading are scheduled for Oct. 15 at 6:30 p.m. in City Hall. The ordinance and resolution cite the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., and reference the City's Redevelopment Plan adopted in June 2022 as the enabling policy for the sale and redevelopment.

Council documents attached to the meeting record describe the developer's plan to merge and subdivide certain lots so that there will be six separate buildable parcels. The Redevelopment Agreement (to be finalized by contract) will set construction and affordability covenants, and the ordinance authorizes the Mayor, Administrator or City Clerk to execute the sale and related documents subject to final Council review.

Why it matters: The agreement would move long‑vacant City parcels back to private ownership and create six new for-sale homes targeted to lower-income first‑time buyers. The sale price and the redevelopment structure rely on the City's designation of the area as in need of rehabilitation and the statutory powers that follow from that determination.

What happens next: The council will hold a public hearing on the ordinance on Oct. 15 before a final vote. The Redevelopment Agreement and final sale documents are conditioned on Council review and approval, and any developer obligations will be memorialized in the Purchase Agreement and Redevelopment Agreement filed with the City Clerk.

Reporter's note: The transcript records Joyce Johnson asking about the ordinance during the agenda-only public comment period; Solicitor Ranieri's explanation is on the record. The ordinance and resolution texts are part of the meeting packet and include the specific block/lot legal descriptions and the stated $25,000 consideration.