CITY OWNED PROPERTIES

CITY OF EAST ORANGE CITY OWNED PROPERTIES An Invitation From MAYOR ROBERT L. BOWSER and THE EAST ORANGE CITY COUNCIL DATE: Thursday, March 18, 2010 TIME: PLACE: 11:00 A.M. East Orange City Hall Council Chambers, First Floor 44 City Hall Plaza, East Orange, N.J FEATURING 144 South Harrison, a vacant eight story building and several other properties Pre-Registration daily in the Law Department 9:00 am~4:00 pm and until 10 a.m. on auction day March 18th For Information Call the Auction Line (973) 266-5440 or visit the City s website @ www.eastorange-nj.org/auction

THE HONORABLE ROBERT L. BOWSER, MAYOR and EAST ORANGE CITY COUNCIL The Honorable Quilla E. Talmadge Council Chairperson First Ward The Honorable Andrea D. McPhatter The Hon. Jamal S. Barnes * Third Ward The Hon. Quilla E. Talmadge The Hon. Theodore R. Green *** Fifth Ward The Hon. Alicia Holman The Hon. Lonnie P. Hughes Second Ward The Hon. Jacquelyn E. Johnson The Hon. Virginia M. Cross Fourth Ward The Hon. William C. Holt** The Hon. Sharon Fields City Clerk s Office Cynthia Brown, City Clerk Hollie Cuttino, Deputy City Clerk Gary Branch, Asst. Municipal Clerk * Chair of City Council s Housing, Licensing & Inspection Committee **Chair of City Council s Finance Committee ***Chair of City Council s Business Development and Zoning Committee

Dear Prospective Bidder: I am pleased to invite you to participate in the City s 24 th Public Property Auction. The Auction will begin promptly at 11:00 a.m. on Thursday, March 18, 2010 in the City Council Chambers located in East Orange City Hall at 44 City Hall Plaza. As you may be aware, East Orange is located at the Crossroads of New Jersey at the intersection of the Garden State Parkway and Route 280. With such easy accessibility to major transportation arteries, along with a strong public transportation system, including access to NJ Transit s Midtown Direct Commuter Rail service to Manhattan, Newark, Hoboken and Jersey City, East Orange provides a strong incentive for businesses and homeowners to reside in our City. As a prime location in the metropolitan region, the City also offer investors tremendous flexibility in terms of quality and variety of housing located in our many tree-lined neighborhoods and diverse commercial, light industrial properties and office buildings. This year s Auction has thirteen (13) properties for bid, including one special featured property: a vacant eight-story former office building and attached land. The attention we ve generated through our redevelopment efforts, and the clear evidence toward a new prosperity in the city has sparked major newspapers, including The New York Times and The Star-Ledger to describe East Orange as an up-and coming Hot market. I, along with the members of the East Orange City Council, welcome your interest as a prospective owner or developer. As the City s ratable base and property values continue to rise, we encourage you to take advantage of this real estate opportunity and become a part of this City s continued resurgence as the City on the Move. For additional information, please feel free to contact Mr. William McNeely, Aide to the Mayor at (973) 266-5151, or visit the City s website at www.eastorange-nj.org/auction. We are looking forward to seeing you at the auction on March 18 th. Sincerely, Robert L. Bowser MAYOR

THANKS TO THE CITY S ADMINISTRATIVE TEAM THAT WORKED ON THIS AUCTION The Honorable Robert L. Bowser, Mayor Area code 973 MAYOR S OFFICE.266-5151 William McNeely, Aide to the Mayor/Chair Real Estate Review Committee/Auctioneer Regina Perry, Public Information Officer Juliet Munroe, Production Assistant CITY ADMINISTRATOR S OFFICE..266-5310 Reginald Lewis, City Administrator David Ramsey, Special Assistant to the City Administrator Donna Littlejohn, Property Insurance Clerk CORPORATION COUNSEL S OFFICE...266-5170 Jason Holt, Corporation Counsel Tracey L.Hackett, First Asst. Corporation Counsel Sally Samuel, Asst. Corporation Counsel DEPARTMENT OF FINANCE. 266-5372 Victoria Walker, CFO/Director of Finance Nathaniel Adams, Purchasing Agent Phyllis Burrell, Senior Buyer DIVISION OF TAX COLLECTION & REVENUES.. 266-5130 Annmarie Corbitt, Tax Collector Toni Porter, Chief Licensing Inspector DEPARTMENT OF PROPERTY TAXATION....266-5105 Barbara D. Williams, Tax Assessor/Director Anand Verma, Chief Assistant Assessor DEPARTMENT OF PROPERTY MAINTENANCE...266-5320 Obed Prinvil, Director Lloyd Abdul Raheem, Construction Official Troy Webster, Zoning Officer DEPARTMENT OF PUBLIC WORKS...266-5330 Michael Johnson, Director/City Engineer Carl Turner, Assistant Director James Fuller, Senior Engineer Rhoda Screen, Principal Draftsperson Technician DEPT. OF PLANNING & ECONOMIC DEVELOPMENT 266-5140 Ernest Freeman, Director Norma Mackey, Manager Business Development Phillip Britton, Construction Project Coordinator Joe Bianco, Manager of Comprehensive Planning Please feel free to contact any staff member listed above regarding technical questions. www.eastorange-nj.org/auction

Index STANDARD CONDITIONS OF SALE PAGE 1 REGISTRATION 144 South Harrison Street PAGE 1 REGISTRATION All auction Properties except 144 So.Harrison Street PAGE 2 RESTRICTIONS PAGE 3 CONTRACT OF SALE PAGE 5 TITLE CLOSING PAGE 6 CLOSING COSTS PAGE 7 ESCROWS PAGE 7 COMPLIANCE PAGE 7 LIQUIDATED DAMAGES PAGE 8 BREACH OF CONTRACT PAGE 9 REVERSION PAGE 10 WHAT IS ZONING? PAGE 11 PROPERTIES WITHDRAWN FROM AUCTION PAGE 12 SPECIAL NOTICE ON ESCROW DEPOSITS PAGE 13 TAX LIABILITY PAGE 14 PROPERTY AUCTION LIST PAGE 15 DESCRIPTION CODES PAGE 16 PROPERTY VIEWING SCHEDULE PAGE 17 PHOTOS AND DESCRIPTION OF PROPERTIES PAGE 18-32 86 North 18th Street 2 Family Dwelling PAGE 18 150 Rutledge Avenue Vacant Land PAGE 19 60 Grove Street Vacant Land PAGE 20 155 North Arlington Avenue Vacant Land PAGE 21 183 North Arlington Avenue Vacant Land PAGE 22 413, 417 Park Avenue Vacant Land, 419 Car repair Bldg PAGE 23 51-53 North Walnut Street PAGE 24 333 Amherst Street Vacant Land PAGE 25 68 Halsted Street Vacant Land PAGE 26 455 Park Avenue 3 Family Dwelling PAGE 27 144 South Harrison 8 Story Office bldg shell PAGE 28 144 South Harrison 8 Story Office bldg shell Photos PAGE 29 144 South Harrison 8 Story Office bldg shell Photos PAGE 30 30 Lake Street & Dodd Street Lot Vacant Land-Irregular PAGE 31 26 Everett Street Vacant Lot PAGE 32 PRE-AUCTION REGISTRATION INFORMATION PAGE 33 NEXT AUCTION INFORMATION PAGE 33 PRE-AUCTION REGISTRATION FORM PAGE 34 www.eastorange-nj.org/auction

STANDARD CONDITIONS OF SALE 144 SOUTH HARRISON STREET IA. REGISTRATION Completed registration forms and supporting documentation shall be submitted to the Office of the Corporation Counsel no later than 10:00 a.m. on March 17, 2010 to: Auction Pre-registration c/o Office of Corporation Counsel 44 City Hall Plaza, 2 nd Floor East Orange, New Jersey 07019 Fax No. (973) 266-5464 Registration by mail or facsimile will not be accepted on the day of the auction and registration shall not be deemed complete without submission of One Hundred Sixty Thousand Dollars ($160,000.00) to the tax collector as described in paragraph 1 below. Receipts for deposits shall be forwarded by the bidder to the Office of the Corporation Counsel. All registrations on the day of auction shall be completed in person at the registration site. Registration may be accepted after 10:00 a.m. on the day of the auction in the discretion of the City. Notwithstanding the aforementioned registration shall not be accepted after the auction begins and registration is a requirement to bid. THE FOLLOWING ITEMS ARE NEEDED FOR REGISTRATION: 1. Each bidder MUST deposit 20% of the minimum bid equaling One Hundred Sixty Thousand ($160,000.00) dollars in the form of a certified check, cashier s check and/or money order made payable to the City of East Orange. Deposits will be accepted by the Tax Collector. Personal or Business Checks will not be accepted for the above. Deposits will be returned to all unsuccessful bidders at the close of the auction on the day of the auction. 2. No bidder may submit a bid on behalf of another except (a) that a husband or wife may bid on behalf of both or (b) upon prior written consent of the Corporation Counsel s office with a duly notarized Power of Attorney. If you will be bidding as an Individual you must have: a. A copy of valid driver s license and/or picture identification b. Certified funds representing One Hundred Sixty Thousand ($160,000.00) dollars. c. Documents demonstrating ability to purchase and rehabilitate building in an amount of not less than $2.5 Million Dollars. If you will be bidding on behalf of a Corporation, in addition to Items a, b and c above, you must have: d. A copy of the Certificate of Incorporation. e. A letter of Authorization from the Corporation. f. Names and addresses of owners having 5% or more interest. If you will be bidding on behalf of a Partnership, in addition to Items a, b and c above, you must have: g. A copy of the Certificate of Trade Name (partnership) h. A letter of Authorization from the other partner(s). All bidders must appear in person at the auction. The auction will begin promptly at 11:00 a.m. You will not be able to bid unless you comply with the foregoing requirements. - 1 -

ALL AUCTIONED PROPERTIES EXCEPT 144 SO. HARRISON STREET IB. REGISTRATION 1. In order to bid on auction properties, each bidder must have ten percent of the minimum bid in the form of a certified check, cash, cashier s check and/or money order (e.g., if the minimum bid is $2,500 then $250.00 is needed). Personal or Business Checks will not be accepted for the above. 2. All bidders must appear in person at the auction and are required to register. On the date of the auction, registration will begin at 8:30 a.m. and close at the start of the auction. The auction will begin promptly at 11:00 a.m. No bidder may submit a bid on behalf of another except (a) that a husband or wife may bid on behalf of both or (b) upon prior written consent of the Corporation Counsel s office with a duly notarized Power of Attorney. If you will be bidding as an Individual you must have: a. A copy of valid driver s license and/or picture identification b. Certified funds representing 10% of the minimum bid. If you will be bidding on behalf of a Corporation, in addition to Items 1 and 2 above, you must have: a. A copy of the Certificate of Incorporation. b. A letter of Authorization from the Corporation. c. Names and addresses of owners having 5% or more interest. If you will be bidding on behalf of a Partnership, in addition to Items 1 and 2 above, you must have: a. A copy of the Certificate of Trade Name (partnership) b. A letter of Authorization from the other partner(s). You will not be able to bid unless you comply with the foregoing requirements. Bidders may pre-register. Completed registrations forms and supporting documentation may be submitted to the Office of the Corporation Counsel no later than March 17, 2010 to: Auction Pre-Registration c/o Law Department 44 City Hall Plaza, 2 nd Floor East Orange, New Jersey 07019 Fax No. (973) 266-5464 - 2 -

II. RESTRICTIONS a. Who may not bid 3. Anyone who had previously been selected as the successful bidder on the same property and who through no fault of the City of East Orange failed to close title to that property. 4. If a successful bidder is or has been a tenant of the City and is more than one (1) month in arrears for rent due or is indebted to the City as a result of a prior tenancy, then he/she shall be disqualified as a bidder and any deposit given by such unqualified bidder shall be forfeited to the City. In addition, the City may pursue all other legal remedies that it may have against the unqualified bidder. 5. A successful bidder who is currently in arrears in taxes and/or is currently in non-compliance with the Standard Conditions of Sale on previously purchased auctioned property and who as a result of said non-compliance and/or arrearage has forfeited his/her deposit and/or has been sanctioned by the Department of Property Maintenance, Building Division. 6. Except in such cases as permitted in Article V, Section C-23 of the Code of the City of East Orange, no sale shall be made to any elected or appointed officer of the City of East Orange. Any sale not in accordance with Article V, Section C-23 of the Code of the City of East Orange shall be null and void. b. Auctioned Property 7. All prospective purchasers are put on notice that no employee, agent or officer of the City of East Orange has authority to waive, modify or amend any of the conditions of sale. 8. Bidders shall not rely on pictures and/or information on property found in the auction book. It is conclusively presumed that a bidder prior to making the bid has done the following: (a) checked the exact location including the correct street address and lot size of the property on the Official Tax Maps which are available at the Department of Public Works, City Hall, (b) checked the zoning restrictions to ascertain the legal use of the property (this information can be obtained from the City Zoning Office, 44 City Hall Plaza) and (c) made a personal inspection of the property s exterior prior to bidding on a piece of property. (d) checked the current assessment and potential taxes with the Tax Assessor s Office. Responsibility for failure to comply with the above-mentioned conditions and guidelines will be fully assumed by the bidder. 9. The sale is to be made subject to such state of facts as an accurate survey and/or title search may disclose, existing tenancies, rights of persons in possession, zoning ordinances, land use restrictions, easements, conditions, covenants and restrictions, codes and ordinances of the City of East Orange. No representations of any kind are made by the City of East Orange as to the condition of the property. Said premises are being sold in the present condition AS IS subject to the aforementioned. - 3 -

All prospective purchasers are put on notice that the City of East Orange does not infer, claim or promise that they will receive any financial assistance from the City of East Orange for the development of the auctioned property. Prospective purchasers should contact the Housing Manager in the Neighborhood Housing and Revitalization Office on the lower level of City Hall if they would like to be directed to private, state or federal funding sources. 10. The City shall not be responsible for environmental remediation including the removal of gas or oil tanks. It is the responsibility of the successful bidder to abate all environmental hazards and violations. If applicable, as directed by the City through the Office of the Corporation Counsel, the successful bidder shall be responsible for providing financial assurances to the City of its ability to cleanup any hazardous materials including but not limited to depositing funds in trust with the City, executing a Memorandum of Agreement with the New Jersey Department of Environmental Protection, posting a bond, developing a cleanup plan or reimbursing the City for any funds expended pursuant to the Environmental Cleanup Responsibility Act (ECRA) or other applicable statute, law, rule or regulation. 11. The sale price, as may result from this auction sale, may not be used before any County Board of Taxation, State Board of Tax Appeals, or in any other court of this State to challenge the assessment with respect to the subject property nor may same be used as a comparable sale to challenge assessment with regard to other properties. 12. This sale is also subject to the further conditions that if the State of New Jersey or any upland owner has any rights or claims to the land being sold herein by reason of a riparian interest or otherwise, any charges levied or so levied by the State of New Jersey or upland owner for said riparian interest or otherwise, are to be borne by the successful bidder in addition to the sale price for said property. 13. If the Successful bidder was a member of a partnership, held an interest in a corporation or was the sole or part owner of the property to be sold at the time the City acquired title by a tax foreclosure, said bidder may only reacquire the property directly or indirectly by complying with the following condition: PAY THE CITY, AT THE CLOSING OF TITLE, THE TOTAL AMOUNT OF TAXES, PLUS INTEREST AND PENALTIES DUE AT THE TIME THE FINAL JUDGMENT OF FORECLOSURE WAS ENTERED PLUS THE AMOUNT OF THE SUCCESSFUL BID. 14. All sales are subject to present tenancies. There is no representation made that any tenancy will continue beyond time of closing title. Leases, if any, are available for review and discussion at the Department of Property Maintenance, 44 City Hall Plaza, East Orange, NJ on business days between the hours of 8:30 a.m. - 4:30 p.m. Call for an appointment at (973) 266-5320. No discussion or review of lease will be allowed at the auction. 15. IT SHALL BE THE SOLE RESPONSIBILITY OF THE SUCCESSFUL BIDDER TO INITIATE ANY EVICTION PROCEDURES AGAINST PRESENT OCCUPANTS, TENANTS, TRESPASSERS OR SQUATTERS. - 4 -

16. The property shall not be tax exempt. 17. The purchaser may not convey property and/or transfer ownership interest 1 in the property for a period of two (2) years from the date of closing of title unless the following applies: a. A new structure has been constructed on a vacant lot, or b. An investment property has been rehabilitated and a Certificate of Occupancy, Certificate of Approval and/or a Certificate of Continued Occupancy has been issued by the City, and c. City Council approves the sale by resolution. III. CONTRACT OF SALE 18. Each person successfully bidding at the auction must be prepared on the date of the auction to execute the contract of sale immediately upon request. 19. In order to sign the contract of sale, the successful bidder must deposit 10% of the successful bid with the City. The remaining balance, if any, may be in the form of certified check, money order, cash, personal or business check made payable to the City of East Orange 2. Any checks accepted must be dated the date of the auction. The combined form of deposit must equal 10% of the total sale price. All monies so received will be credited to the total sale price. 20. Failure to execute the contract of sale and/or have the required 10% of the successful bid upon request shall result in rejection of the bid. The property shall then be re-auctioned immediately following the auction of the last property on the auction list or held to the next auction. The person whose bid is so rejected may not re-bid on the subject property. 21. The 10% deposit made by the successful bidder is non-refundable. The purchaser is not entitled to a refund of this deposit in any case except where the City is unable to convey marketable title, as indicated in Paragraph 23 herein. 22. Each bid is subject to the rejection or acceptance by the Municipal Council, which shall occur no later than at its second regular meeting following the auction sale. The Municipal Council reserves the right to reject each bid. If action is not taken by the Council on a particular bid, that bid will be deemed to be rejected. 23. Notice of any alleged defect in title or claim of unmarketable properties shall be given to the City in writing no later than thirty (30) days after the date of confirmation of the sale by the governing body of the City of East Orange. If the title to this property shall prove to be unmarketable, the liability of the City shall be limited to the repayment to the purchaser of the deposit without any liability for costs, expenses, damages, attorney fees or claims. 1 Transfer of ownership interest shall be defined as conveyance of the successful bidders interest in a property to another individual(s), partnership, limited liability corporation, corporation, company or other business entity. 2 The City of East Orange does not accept double endorsed checks. - 5 -

Failure to give such notice within the time stated shall be deemed conclusive evidence that the purchaser accepts the title in its then present condition. The aforementioned thirty (30) day time period may be extended at the discretion of the Corporation Counsel upon written application to the Corporation Counsel by the bidder prior to the expiration of said period. 24. The contract of sale is not subject to the successful bidder obtaining a mortgage. Thus, deposits will not be refunded as a result of his/her failure to obtain a mortgage. IV. TITLE CLOSING 25. All conveyances shall be by deed of bargain and sale. Title is to close within sixty (60) days after confirmation of the bid by the Municipal Council at the City's Office of Corporation Counsel, 44 City Hall Plaza, East Orange, NJ 07019, between the hours of 9:00 a.m. and 4:00 p.m. prevailing time. The Corporation Counsel or his designee shall set the exact closing date and time. TIME IS OF THE ESSENCE. NO POSTPONEMENT OF CLOSING IS PERMITTED UNLESS: a. The City's title is unmarketable in which event the City shall be allowed a reasonable time to perfect title and to close. If the unmarketability of title relates to a valid Federal lien against the purchaser's property, the City, after being timely notified of this defect by the purchaser, will endeavor to obtain within a reasonable time after such notification a release or discharge of such lien. If the City is successful in this regard, then part of the consideration to be paid by the successful bidder of said property shall be in the form of a certified check payable to the United States of America for the amount to be paid for such release or discharge; or b. Upon written request containing the reasons therefore made by the purchaser within thirty (30) days after the confirmation of the sale by City Council. This request is subject to the approval of the Corporation Counsel or his designee; or Should the title fail to close within the above-mentioned sixty (60) days as a result of paragraph b above, the successful bidder shall forfeit ½ his deposit monies and shall be required to bring at the time of closing ½ of deposit to replace forfeited monies in addition to the remaining balance of the purchase price and closing costs. Should the title fail to close within (90) days as a result of paragraph b above, the successful bidder shall forfeit his/her entire deposit money and shall be required to bring at the time of closing the entire deposit to replace forfeited monies in addition to the remaining balance of the purchase price and closing costs. 26. The successful bidder, prior to closing of title, will not be permitted to assign his bid, nor any right, title or interest in the property on which the bid was made unless approved by the Corporation Counsel or his designee in writing. - 6 -

V. CLOSING COSTS 27. Payment in full shall be made to the City of East Orange upon final closing in the form of a certified check, cash, cashier s check and/or money order. Personal or Business checks will not be accepted at closing. In addition to the purchase price, the purchaser is required to pay the following closing costs: a. Advertising fees (cost incurred to advertise the property for auction); b. Recording fees (Successful bidders agree that the deeds shall be recorded on behalf of the purchaser by the Corporation Counsel of the City of East Orange); c. Title closing fees (cost incurred with respect to foreclosure of the property); d. Pay for all heating oil on the premises on the day of closing; e. If the property is an occupied dwelling (as defined by the Division of Housing of the New Jersey Department of Community Affairs), the purchaser is further required to pay all State inspection fees outstanding as of date of closing. The City will adjust for rents it collected in the month of closing. f. Change of document fee (cost incurred, if any, to change requested documents) Note: Tax liability on any property purchased from the City of East Orange begins the date of acquisition of the property from the City. VI. ESCROWS 28. The successful bidder shall also be required to deposit at the time of the closing five (5%) percent of the purchase price in a non-interest bearing escrow account of the City. 29. The escrow monies shall be held for a period of 19 months unless one of the following occurs: a. The owner has complied with the Conditions of Sale and has obtained a Certificate of Occupancy, Certificate of Continued Occupancy or Certificate of Approval and has requested same in writing to the Department of Property Maintenance with a copy to the Office of Corporation Counsel. b. The owner has breached the contract prior to the expiration of nineteen (19) months and the Corporation Counsel and/or his designee has advised the Tax Collector to transfer escrow monies to general funds. VII. COMPLIANCE * The Property 30. The property must be fenced and graded (if applicable) no later than thirty (30) business days from the time of closing. At that time, the purchaser must request an inspection of the property to verify that pursuant to the conditions of sale said grading (if applicable) has been completed and the fence erected. - 7 -

31. In cases where the Owner has elected to begin new construction and/or rehabilitation and/or demolition of the property, in addition to the thirty (30) days fencing notification, see (a) above, the Owner shall give notice that construction/ rehabilitation/demolition has begun within ten (10) business days of issuance of permits. 32. The Owner of commercial, industrial, mixed use, or five (5) or more family residential property shall complete the repairs, alterations and improvements and must apply for and obtain a Certificate of Occupancy, Certificate of Continued Occupancy, Certificate of Conformity or Certificate of Approval from the City within seventeen (17) months of issuance of permits. 33. Where this condition applies the Owner shall repair, alter, improve, and/or demolish the property in accordance with the requirements of the Revised Ordinances of the City of East Orange and the Uniform Construction Code of the State of New Jersey. Information for said requirements may be obtained by inquiry to the Department of Property Maintenance. 34. Where the successful bidder chooses to demolish the existing structure, it must be demolished, properly cleared of all debris and cleaned to the satisfaction of the Building Division and the premises graded and fenced within fifteen (15) business days of issuance of permits. 35. Upon compliance of paragraphs 30 through 35 (where applicable), the Owner of previously auctioned City Property shall notify the Department of Property Maintenance, Building Division, by Regular and Certified Mail Return Receipt and copy to the Office of Corporation Counsel of the City of East Orange. Note: Upon compliance with paragraphs 30 through 35, the City shall return the applicable deposit held in escrow. *CERTAIN PROPERTIES MAY BE LOCATED WITHIN A REDEVELOPMENT AREA AND ADDITIONAL CONDITIONS MAY BE REQUIRED. THE SUCCESSFUL BIDDER MUST CONTACT THE DEPARTMENT OF POLICY, PLANNING AND DEVELOPMENT AT (973) 266-5141 REGARDING SAME. VIII. LIQUIDATED DAMAGES The deposit held in escrow shall be applied as liquidated damages if any one of the following conditions occur: a. All Auctioned Properties 36. Owner fails to construct a fence within thirty (30) days of closing. In no case shall barbed wire, wood or similar material dangerous to children be used, 3 unless said requirement 3 Fencing must be constructed as follows: (1) Minimum height - 6ft; (2) Material - galvanized metal of a minimum #9 gauge galvanized wire with a 2 inch mesh; (3) line posts- minimum 2 inches outside diameter galvanized pipe; (4) terminal posts, gates, ends, and corner posts - - 8 -

has been waived by the Department of Property Maintenance, Building Division upon written request by the owner. 4 37. If taxes are 30 days or more delinquent during any period within eighteen (18) months of closing. 38. Owner fails to continuously maintain the fence, protect and clear the property of all debris, clean property to the satisfaction of the Department of Property Maintenance, during any period within eighteen (18) months of closing. 39. Owner fails to comply with the development schedule if applicable as specified pursuant to the addendum to the Contract of Sale. 40. Owner fails to notify the Department of Property Maintenance by certified return receipt mail that all of the conditions herein have been met within nineteen (19) months of closing. b. Rehabs/New Construction/Demolitions 41. Owner fails to apply and obtain from the Department of Property Maintenance, Building Division, the necessary building and/or construction and/or demolition permits within thirty (30) business days of closing. Unless the Department of Property Maintenance has failed to comply with the provisions of paragraph 30. 42. Owner fails to begin construction and/or demolition and/or rehabilitation within ten (10) business days of issuance of permits. 43. Owner fails to apply for and obtain a Certificate of Occupancy, Certificate of Continued Occupancy or a Certificate of Approval from the City of East Orange within eighteen (18) months of closing. IX. BREACH OF CONTRACT 44. A failure by the purchaser to fully comply with the terms, conditions, requirements and regulations of sale as herein contained shall be considered, at the option of the City of East Orange, as material breach of the condition of sale whereupon the City of East Orange may declare said contract or purchase terminated and at an end. All monies paid on behalf of the purchase price by way of deposit or otherwise may be retained by the City as its liquidated damages and it may thereafter resell the said property and/or pursue such other and further legal and/or equitable remedies as it may have and the defaulting purchaser shall continue minimum 21/2 inches outside diameter; (5) terminal posts must be set in concrete footings at a minimum of 30 inches from the ground; (6) line posts- must be driven a minimum 30 inches into the ground; (7) coil spring minimum #7 gauge wire to provide proper tension. 4 Waiver may only be obtained wherein the property already has a fence which meets the specifications contained herein. - 9 -

to remain liable for all damages and losses sustained by the City of East Orange by reason of any such default. 45. Should the purchaser violate paragraph 17 of the conditions of sale in addition to the remedies set forth herein they may also be fined up to 10% of the Purchase Price. X. REVERSION 45. The City of East Orange shall have the right to seek the reversion of title where the purchaser fails to comply with the Conditions of Sale. This right of reversion shall be included in a clause contained in the deed of conveyance. In order for the City to reacquire the property, any one of the following must occur: a. Conveyance of the property and/or transfer of ownership interest in property within a two (2) year period in violation of Paragraph 17 of the Conditions of Sale. The City must file a Complaint within one (1) year after filing of said conveyance with County Registrar. b. Failure to comply with the applicable provisions contained in Paragraphs 30-35. The City must file the Complaint within thirty (30) months from the date of closing. 46. RESERVATION: None of the provisions which require work to be performed subsequent to conveyance are intended to or shall be merged by reason of any deed transferring title to the property from the City of East Orange to the purchaser or any successor in interest and any such deed shall not be deemed to affect or impair said provisions and Conditions of Sale. 47. Each section of the Conditions of Sale is an independent section, and the holding of any section or part thereof to be unconstitutional, void or ineffective for any cause shall not be deemed to affect the validity or constitutionality of any other section or parts thereof. - 10 -

WHAT IS ZONING? Zoning is the authority to regulate land use. This authority is encompassed within the power granted to the Legislature Branch of Government by Article III of the New Jersey Constitution of 1947. The Legislature delegates some of this power to municipalities by virtue of the Municipal Land Use Law of 1975 which granted municipalities the power to enact a Master Plan and adopt a Zoning Ordinance. The current City of East Orange Land Use and Redevelopment Ordinance was last revised in December 15 th of 2002. The City of East Orange is divided into 14 Zoning Districts: DISTRICTS 1. R-1 Single family residential 2. R-2 Two and three family residential townhouses 3. R-3 Multifamily structures, townhouses, garden apartments 4. R-4 Multifamily structures, high-rise apartments, hotel 5. R-0 High-rise multifamily structures (offices) 6. CCC Continuing Care Businesses 7. C-1 Neighborhood Businesses 8. C-2 Community Businesses (automobile related) 9. C-3 Large volume Businesses 10. IND Industrial 11. IND-1 Mixed industrial/commercial 12. INST-1 Institutional, Medical related 13. INST-2 Other institutional uses 14. UR-1 Redevelopment Should you require further information regarding Zoning and Land Use Development, please contact the Zoning Officer in the Building Division at (973) 266-5329 or the Department of Policy, Planning and Development at (973) 266-5486. 11

PROPERTIES WITHDRAWN FROM AUCTION All properties advertised for sale by the City of East Orange are offered in good faith. However, the possibility exists that a specific property or properties may be withdrawn either before or during the time of the auction. All property(ies) that are withdrawn will be announced at the auction and the reasons stated. Be assured that the City regrets any inconvenience that these isolated incidents may cause. 12

*************SPECIAL NOTICE************* ON ESCROW DEPOSITS Your attention is directed to the Standard Conditions contained in paragraphs 3, 5, 6, 7, 8, 14, 18, 20, 24, 25, 26, 27, 28, 30 and 32, which deal with escrow deposits. You are advised that there will be absolute enforcement of the requirements of these conditions. Failure to comply may result in the forfeiture of your compliance escrow deposit, (quarter taxes and refundable fence deposit) or both where applicable. 13

ATTENTION PROSPECTIVE PURCHASERS Tax Liability Commences Tax Liability on any property which is purchased from the City of East Orange begins from the date of acquisition (date of closing) of the property from the City. 14

CITY OWNED PROPERTY LIST City Auction March 18, 2010 BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 62 37 86 North 18th Street 100X100 2 Family Dwelling R2 279,400.00 7,915.40 65,000.00 120 2.01 150 Rutledge Avenue 49,350 Sq. Ft. Vacant Land R2 225,000.00 6,374.25 80,000.00 173 3 60 Grove Place 39X121 Vacant Land R2 115,800.00 3,280.61 30,000.00 361 2 155 North Arlington Avenue 52X148 Vacant Land R4 142,700.00 4,042.69 30,000.00 361 6 183 North Arlington Avenue 76X200 2 Family Dwelling ** R3 289,500.00 8,201.54 65,000.00 362 9 10 11 413 Park Avenue 417 Park Avenue 419 Park Avenue * 35X110 35X110 35X110 Vacant Land Vacant Land Car Repairs Bldg ** R3 382,000.00 10,822.06 80,000.00 371 10 51-53 North Walnut Street 50X134 Vacant Land R3 145,200.00 4,113.52 25,000.00 480 8 333 Amherst Street 50X100 Vacant Land R2 75,700.00 2,144.58 15,000.00 532 15 68 Halsted Street 60X150 Vacant Lot RO 125,700.00 3,561.08 20,000.00 551.01 30 455 Park Avenue 30X130 3 Family Dwelling R3 285,100.00 8,076.88 75,000.00 710 832 11 12 17 35 36 107 Evergreen Place * 103 Evergreen Place 144 South Harrison Street 50X184 50X184 92X378 Vacant Land Vacant Land 8S Office Bldg shell R4-RO 3,171,200.00 89,840.10 800,000.00 30 Lake Street & Dodd Street Lot 7,950 Sq.Ft. Vacant Land - Irregular Shape IND1 130,800.00 3,705.56 15,000.00 842 8 26 Everett Street 17,545 Sq. Ft. Vacant Land R1 150,300.00 4,258.00 65,000.00 * Pending Consolidation ** Pending Demolition 15 15

RESIDENTIAL DESCRIPTION OF CODES 1-2-3-4-5 The first number is the number of families; The second number is the number of rooms; The third number is the number of baths; The forth number is the number of garages; The fifth number is the type of heat; EXAMPLE 1-8-1-2-0 means 1 family 8 rooms-1 bath-2 car garage-oil heat 2-1O-2-O-X means 2 family-10 rooms-2 baths-no garage-gas heat 3-14-3-3-E means 3 family-l4 rooms-3 baths-3 car garage-electric heat 4-20-4-O-0/X means 4 family-20 rooms-4 baths-no garage-oil/gas heat COMMERICAL EXAMPLE 3S-S/A-1/2 means 3 story-stores and apartments-i store/2 apartments 1S-Off means one story office 2S-S/0-2/4 means 2 story-stores and office-stores/4 offices 4S-S/A-12/40 means 4 story stores and apartments-12 stores/40 apartments APARTMENTS EXAMPLE 2SW-24-0-O means 2 story walkup-24 units-no garage-oil heat 2SG-30-O-E means 2 story garden-30 units-no garage-electric heat 3SW-35-1S-0 means 3 story walkup 35 units-i story garage-oil heat 4SE-50-0-X means 4 story elevator-so units-no garage-gas beat IOS-ELEV-204-2/1 S-0 means 10 story elevator-204 units-2 one story garages-oil heat 16

PROPERTY VIEWING SCHEDULE PROPERTY ADDRESS MARCH 17, 2010 144 South Harrison Street 9:30 A.M.-10:30 A.M. 86 North 18 th Street 10:30 A.M. 11:30 A.M. 455 Park Avenue 11:30 A.M-12:30 P.M. For safety and security reasons, building will only be open on the day and the hours listed above. LOTS Please feel free to visit the other properties at your convenience. www.eastorange-nj.org/auction 17

86 North 18th Street 2 Family Dwelling BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 62 37 86 North 18th Street 100X100 2 Family Dwelling R2 279,400.00 7,915.40 65,000.00 www.eastorange-nj.org/auction 18

150 Rutledge Avenue VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 120 2.01 150 Rutledge Avenue 49,350 Sq. Ft. Vacant Land R2 225,000.00 6,374.25 80,000.00 www.eastorange-nj.org/auction 19

60 Grove Place VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 173 3 60 Grove Place 39X121 Vacant Land R2 115,800.00 3,280.61 30,000.00 www.eastorange-nj.org/auction 20

155 North Arlington Avenue VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 361 2 155 North Arlington Avenue 52X148 Vacant Land R4 142,700.00 4,042.69 30,000.00 www.eastorange-nj.org/auction 21

183 North Arlington Avenue 2 Family Dwelling ** BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 361 6 183 North Arlington Avenue 76X200 2 Family Dwelling ** R3 289,500.00 8,201.54 65,000.00 ** Pending Demolition www.eastorange-nj.org/auction 22

413 Park Avenue Vacant Land 417 Park Avenue Vacant Land 419 Park Avenue* Car Repairs Bldg ** BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 362 9 10 11 413 Park Avenue 417 Park Avenue 419 Park Avenue * 35X110 35X110 35X110 Vacant Land Vacant Land Car Repairs Bldg ** R3 382,000.00 10,822.06 80,000.00 * Pending Consolidation ** Pending Demolition www.eastorange-nj.org/auction 23

51-53 North Walnut VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 371 10 51-53 North Walnut Street 50X134 Vacant Land R3 145,200.00 4,113.52 25,000.00 www.eastorange-nj.org/auction 24

333 Amherst Street VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 480 8 333 Amherst Street 50X100 Vacant Land R2 75,700.00 2,144.58 15,000.00 www.eastorange-nj.org/auction 25

68 Halsted Street Vacant Land BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 532 15 68 Halsted Street 60X150 Vacant Lot RO 125,700.00 3,561.08 20,000.00 www.eastorange-nj.org/auction 26

455 Park Avenue 3 Family Dwelling BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 551.01 30 455 Park Avenue 30X130 3 Family Dwelling R3 285,100.00 8,076.88 75,000.00 This is an occupied structure This is an occupied structure www.eastorange-nj.org/auction 27

107 Evergreen Place * Vacant Land 103 Evergreen Place Vacant Land 144 South Harrison Street 8S Office Bldg shell See Page 29 & 30 for additional photos BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 710 11 12 17 107 Evergreen Place * 103 Evergreen Place 144 South Harrison Street 50X184 50X184 92X378 Vacant Land Vacant Land 8S Office Bldg shell R4-RO 3,171,200.00 89,840.10 800,000.00 See Page 29 & 30 for additional photos * Proposed Consolidation www.eastorange-nj.org/auction 28

144 South Harrison Street Front Rear Front www.eastorange-nj.org/auction 29

144 South Harrison Street Views from the TOP www.eastorange-nj.org/auction 30

30 Lake Street & Dodd Street Lot Vacant Land- Irregular Shape BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 35 30 Lake Street & 832 36 Dodd Street Lot 7,950 Sq.Ft. Vacant Land - Irregular Shape IND1 130,800.00 3,705.56 15,000.00 www.eastorange-nj.org/auction 31

26 Everett Street VACANT LAND BLOCK LOT ADDRESS SIZE DESCRIPTION ZONE ASSESSMENT TAXES MIN BID 842 8 26 Everett Street 17,545 Sq. Ft. Vacant Land R1 150,300.00 4,258.00 65,000.00 www.eastorange-nj.org/auction 32

PRE-AUCTION REGISTRATION Pursuant to paragraph 8 of the Conditions of Sale, in order to bid on properties, all bidders must register. You may pre-register by completing the attached registration form no later than March 17, 2010. The completed form with attachments may be mailed or faxed to: Tracey L. Hackett First Assistant Corporation Counsel Office of the Corporation Counsel 44 City Hall Plaza 2 nd Floor East Orange, NJ 07019 (973) 266-5464 On the date of the auction, proceed to the pre-registration line with appropriate identification where you will be issued a bidder s number. Registration forms received after March 17, 2010 will still be accepted, however these forms will be placed with the regular registration in the order that they are received. See pre-registration form on the next page The City s Next Public Auction The Real Estate Review Committee is currently reviewing additional properties for the City s next public auction to be held before the end of this fiscal year June 30, 2010. For further information call the Auction Line (973) 266-5440 or visit the City s website at www.eastorange-nj.org/auction www.eastorange-nj.org/auction 33

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