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#02 Acquisition of 417 N Washington Memo NEIGHBORHOOD SERVICES MEMORANDUM June 9, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Acquisition and Demolition of 417 North Washington Street Summary The Neighborhood Services Department has negotiated a purchase price of $39,900 for the 4-unit building located at 417 North Washington. The project would include acquisition and demolition of the poorly maintained vacant home and expanding Washington Park with the vacant lot. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2009-614 authorizing the purchase of the property located at 417 North Washington Street, at a price not to exceed $39,900 for parkland. City Manager Recommendation I concur with the Plan Commission and Neighborhood Services recommendation. Suggested Motion I move to approve file resolution 2009-614 authorizing the purchase of 417 North Washington Street, at price not to exceed $39,900 for parkland. Background The City of Janesville’s Parks and Open Space Plan was recently adopted on June 9, 2008. The purpose of this plan is to proactively account for and anticipate the City of Janesville’s future park and recreational needs. One of the recommendations of this plan is that Neighborhood Parks should be a minimum of 2 acres in size. Further, that in the event that a residential property adjoining a substandard park come on the market, the City explore the possible acquisition of the property for an addition to the park. Neighborhood Services became aware of such a property located at 417 North Washington in April of this year. This property is directly adjoining Washington Park on the southeast corner of the park. The building is a two story, 4-unit, 2800 sq foot building on a 103 foot by 144 foot lot. th The City of Janesville’s Look West and Old 4 Ward Neighborhood Revitalization Plan, adopted in December of 2008, specifies density reduction as a goal of the 1 plan. At the City Council’s request, Neighborhood Services approached the Neighborhood Action Team with the potential acquisition and solicited direction on the scope of the project. The Neighborhood Action Team determined that the best course of action for this particular property was to demolish the structure and expand Washington Park. Recently, the City of Janesville and the Action Team have made improvements to the park including a historical marker and the second community garden. Staff toured the property and found it to be in poor condition. The property was foreclosed in November of 2008. Neighborhood Services staff has been negotiating with the bank owner of this property for months and an agreement has been reached with a purchase price of $39,900. This project would include acquisition and demolition of the property. The estimated cost of demolition is $19,000. The balance of the Parkland Fund is currently at $213,492. The lot would then be added Washington Park. Analysis A. This home is located directly across from Washington Park and across from another property that the City is in negotiations to purchase (Resolution 2009-615). B. The property is zoned R-3, General Residential. C. The 4-unit building is vacant and in poor condition. D. The acquisition and demolition project is consistent with the City of Janesville’s Comprehensive Plan, the Parks and Open Space Plan and the Look West and Old Fourth Ward Neighborhood Revitalization Plan. Plan Commission Action Al Hulick, Development Specialist, presented the written staff report. Commissioner Zolidis asked who determines if the Parkland Acquisition Fund is the appropriate funding source for this acquisition. Jennifer Petruzzello, Director of Neighborhood Services, stated that the City Council would make the final decision as to whether or not this funding source is appropriate. There was a motion by Commissioner Voskuil with a second by Commissioner Perrotto to forward the acquisition of 417 North Washington to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of this transaction. The motion carried on a 5-0-0 vote. cc: Eric Levitt, City Manager Jay Winzenz, Dir. Of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 2 RESOLUTION NO. 2009-614 RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 417 NORTH WASHINGTON STREET WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17) (a), 62.23 (17) (b), 66.0101, 62.11(5) and Chapter 32 and other pertinent Wisconsin Statutes permit the City’s acquisition, development, ownership, protection, and conservation of parkland, open space, riverfront properties, and development properties; and WHEREAS, the City of Janesville’s Parks and Open Space Plan, adopted June 9, 2008, recommends a minimum Neighborhood Park size of 2 acres and in the event that a residential property adjoining a substandard park come on the market, the City should evaluate the purchase of this property for acquisition and addition to expand the size of the park; and WHEREAS , Washington Park, located at 431 N Washington Street, is currently less that the recommended two acre size; and WHEREAS , the property located at 417 North Washington was foreclosed November 15, 2008, and was listed for sale; and WHEREAS , the City of Janesville Administration has negotiated an offer to purchase 417 North Washington Street in the amount Thirty Nine thousand Nine Hundred dollars ($39,900); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on June 15th, 2009 and found it to be consistent with long range City plans, but not commenting upon the financial aspects of the transaction; and WHEREAS , the funding source for the acquisition and demolition is park land acquisition funds. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve and authorize the City Manager and/or his designee(s) to acquire and close upon the City’s purchase of the Property from the owners on behalf of the City; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s) on behalf of the City of Janesville is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. 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