TRENTON SMALL BUSINESS WEEK

1. TRENTON SMALL BUSINESS WEEK HOW TO BUY PROPERTY FROM THE CITY OF TRENTON October 21, 2010 Henrietta Owusu, AICP Acting Director Department of Housing and Economic Development Andrew Carten, AICP Director Division of Planning

2. AVAILABLE PROPERTY IN THE CITY • City Owned • Vacant Buildings • Vacant Land • Privately Owned • Other Government Owned The City of Trenton

3. Prototypical Vacant City Structure The City of Trenton

4. HOW TO FIND OUT PROPERTY OWNERSHIP 1. Internet: • Go to: www.trentonnj.org, Click on the following links in progressive order: Departments. Housing and Economic Development. Index of Documents and Maps. Interactive Mapping: Internet DataViewer • Within the Internet Dataviewer Use the Following Search Tools: Find Address. Search. Map It • You Can Collect and Organize Your Information Through the Map Tools feature. Click on: Select Tool , Select Address, Report Tools , Report Tool , Saved Reports , Property Owner List and Create Report *Note: Always verify ownership with Tax Assessors Office at 609.989.3091 The City of Trenton

5. The City of Trenton

6. HOW TO GET STARTED • Go to City of Trenton’s Website • www.trentonnj.org/buyingcityproperty The link explains the acquisition process in greater detail • Contact the Department of Housing and Economic Development at: 609.989.3518 The City of Trenton

7. How is City Property Sold? • Properties sold at Public Auction • Property Sold Without the Need for Public Bidding The City of Trenton

8. SALE OF PROPERTY THROUGH PUBLIC AUCTION • City Schedules a Public Auction • Next auction to be held November 13, 2010 • City sets a minimum bid on each of the properties • City arranges properties on the auction list to be open for inspection • Auction held with bids starting at the minimum bid price • Winning bid must provide a 20% deposit on the day of the auction The City of Trenton

9. SALE OF PROPERTIES THROUGH PUBLIC AUCTION Conditions of the Sale: • Within 90 days following the date upon which the ordinance approving the sale of the property is confirmed by Council , the purchaser must close on the property • Within 18 months of purchasing the property, the purchaser must complete the rehab work on the property or risk recapture of the property The City of Trenton

10. PUBLIC AUCTIONFrequently Asked Questions • What if the property I am interested in is not on the auction list? • How is the bid price determined? • Is the property title clear of any encumbrances or liens? • Are there restrictions on the reuse or sale of the properties? • Is there a timeline by which the rehab must be started and completed? The City of Trenton

11. PUBLIC AUCTION FAQs • Are there any funds available to assist with the rehab work? • Do we have an opportunity to inspect properties prior to the auction? • Does the City require evidence of financial capacity? • Are there instances where deposits or acquisition funds are refunded? The City of Trenton

12. PUBLIC AUCTIONFrequently Asked Questions cont. • Do these properties require renovation or rehabilitation? • Am I required to pay taxes during the construction process? • Can I do rehabilitation work without permits? • Am I eligible to apply for a tax abatement? The City of Trenton

13. SALE OF PROPERTY WITHOUT PUBLIC BIDDING There are three ways in which the City of Trenton may dispose of property without going through a formal bid process or public auction: • Undersized Lot • Non-Profit Organization • Redevelopment Area The City of Trenton

14. SALE OF PROPERTY WITHOUT PUBLIC BIDDING 1. Undersized Vacant Lots: The City may sell a property to an adjacent property owner by private sale if it is less than the minimum size required for development under the City zoning ordinance and it does not have any improvements upon it. • The City must send written notification to the adjacent property owners offering the property for sale and stating the minimum purchase price, which may not be less than the fair market value of the property. • The City is required to accept the highest bid received. It should be noted that property acquired in this manner may be located within or outside of a Redevelopment Area. To express your interest in purchasing a specific property that qualifies to be sold in this manner, please send a letter of interest to the Director of the Department of Housing and Economic Development. The City of Trenton

15. SALE OF PROPERTY WITHOUT PUBLIC BIDDING 2. Non-profit Organizations: The City may sell property not needed for a public purpose to non-profit organizations by private sale for nominal consideration. Properties sold to such organizations must be used for the purposes of the organization and not for commercial business, trade or manufacturing. If they are used in violation of this restriction, title to the property can revert back to the City. Eligible non-profit organizations which may acquire property from the City in this manner include: veterans associations, historical societies and organizations that principally provide educational, recreation, medical or social services to the public. The City of Trenton

16. SALE OF PROPERTY WITHOUT PUBLIC BIDDING • In addition, nonprofits may acquire property from the City in this manner for the purpose of building or rehabilitating residential property for resale, provided that any profits must be applied to the cost of acquiring and rehabilitating other City-owned residential property. It should be noted that property acquired in this manner may be located within or outside of a Redevelopment Area. To determine whether your organization may acquire a specific City-owned property in this manner, please contact the Department of Housing and Economic Development. The City of Trenton

17. SALE OF PROPERTY WITHOUT PUBLIC BIDDING 3. Property located within a designated Redevelopment Area: • Redevelopment Areas have been specifically designated as being in need of redevelopment or rehabilitation pursuant the State Law. To facilitate the redevelopment, the law allows property to be sold without public bidding. These properties may be sold through a disposition agreement subject to the terms of Redevelopment Plan which sets forth the redevelopment objectives, building specifications and other requirements specific to the area • To determine whether the property is within a redevelopment area, go to the City’s website: www.trentonnj.org. Search “Redevelopment” in the search box to find the list of redevelopment plans The City of Trenton

18. SALE OF PROPERTY WITHOUT PUBLIC BIDDING • There are various ways in which properties within a Redevelopment Area are sold: • RFP’s/ RFQ’s: The City issues Request for Proposals (RFPs) and Request for Qualification (RFQs) seeking a developer for a certified project located within a redevelopment area • Winning bidders of RFPs and RFQs are designated as the exclusive developer of the project and commence the negotiation with the City of a disposition agreement setting forth the terms and conditions of your acquisition and development of the property • Info about current RFPs and RFQs can be found at: www.trentonnj.org The City of Trenton

19. SALE OF PROPERTY WITHOUT PUBLIC BIDDING • Acquisition of Property within a Redevelopment Area: • The City will consider facts such as your development experience and financial viability when deciding whether you are qualified to acquire and develop a property. • To express interest in acquiring and developing property located within a Redevelopment Area, you should schedule a meeting to discuss your development proposal. A written request to the Director of Housing and Economic Development should be submitted. The City of Trenton

20. City Property Program for Small Scale Developers • Selection Criteria For Developers of 1-4 units: Must demonstrate a knowledge of the development process. • Must have developed at least one housing unit in the last five years – a development portfolio must be provided • Units have to be for market rate homeownership, i.e. no subsidy • City will provide the city-owned units at a nominal cost • Developer must be committed to creating quality units through innovation and creativity • Selection will also be based on the developer’s use of high quality design elements not usually seen in inner-city developments e.g. sustainable features like hardiplank, hardwood floors, recycled materials etc. The City of Trenton

21. City Property Program for Developers of 5+ Units Selection Criteria For Developers of 5 or more units : • In addition to the same criteria for the 1-4 unit developers, these developers should have an established partnership with another experienced entity with a successful track record,eg. • They should have developed a minimum of five housing units and undertaken projects which: (1) involve substantial rehabilitation and; (2) are located in urban cities that are occupied, or are under construction and at least 50% complete.    Current financial statement for the Builder/Developer entity must be provided. As well as a Statement of qualifications, including resumes, and description of the specific responsibilities of each key individual employed by the Builder/Developer who will be involved in planning, developing, marketing, and operating. The City of Trenton

22. City Property Program for Developers of 5+ units, cont. • Experience of each firm with respect to the planning, financing, development and operations.       Previous experience of the firm and/or key individuals, where applicable, working with the Builder/Developer submitting the           proposal.  Designation of a firm as part of the development team in          the proposal does not bind the Builder/Developer to use that firm if           selected as developer of this project.  Note, the City must be        advised in advance of a change in the ownership of the firm.  Documentation of minority and local participation, as applicable, for the Builder/Developer and the other individuals involved in the project, including MBE/WBE involvement, citing specific roles of the individuals so identified The City of Trenton

23. Restrictions on the Development and/or Use of Property • All property located within the City must be developed and used in accordance with any applicable Redevelopment Plans and all other applicable laws and regulations, including zoning regulations, redevelopment laws, the City Code and the State Uniform Construction Code. • Certain properties may be subject to additional requirements. For instance, property purchased at public auction is typically required to be developed and sold to owner-occupants, rather than rented to tenants in order to further the City’s homeownership objectives and property purchased by non-profits typically must be used only for purposes of the organization. • Please refer to the City ordinance authorizing the sale of the property and the purchase agreement or disposition agreement entered into with the City for additional requirements. The City of Trenton

24. THANK YOU • Henrietta Owusu, AICP • Email: Howusu@trentonnj.org • Phone: 609.989.3518 • Andrew Carten, AICP • Email: Acarten@trentonnj.org • Phone: 609.989.3502 The City of Trenton