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#03 Acquisition of 414 N Washington Memo NEIGHBORHOOD SERVICES MEMORANDUM June 9, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Acquisition of 414 North Washington Street Summary The Neighborhood Services Department is anticipating a Neighborhood Stabilization Program (NSP) grant award of $987,146 to acquire, rehabilitate, demolish and redevelop foreclosed and abandoned properties. The property located at 414 North Washington is a foreclosed home that is consistent with the grant application and award criteria. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2009-615 authorizing the purchase of the property located at 414 North Washington Street, at a price not to exceed $40,750 as part of the Neighborhood Stabilization Grant Program (NSP). City Manager Recommendation The City Manager concurs with the department recommendation. Suggested Motion I move to approve file resolution 2009-615 authorizing the purchase of 414 North Washington Street, at price not to exceed $40,750 as part of the Neighborhood Stabilization Grant Program. Background The Housing and Economic Recovery Act (HERA) of 2008 created the Neighborhood Stabilization Program, under which states, cities and counties will receive a total of $3.92 billion to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties. NSP funds are considered Community Development Block Grant (CDBG) funds. The U.S. Department of Housing and Urban Development (HUD) has made a total of $38,779,123 available to the State of Wisconsin and $9,187,465 to the City of Milwaukee. The City of Janesville anticipates an award of $987,146 . 1 In January 2009, the City Council authorized staff to apply for a Neighborhood Stabilization grant Program through the State of Wisconsin Department of Commerce. This program allows municipalities and qualified non-profit organizations to acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or demolition. The Community Development Authority (CDA) and the Neighborhood Action Team assisted in formulating criteria for potential Neighborhood Stabilization Program grant projects, including: location in area of greatest need; located within either of the two redevelopment sites as identified in the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization Plan (Adopted th December 8, 2008); properties located along collector, major arterial streets, or minor arterial streets; properties located near schools or parks; properties th identified as poor or fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 &10). The property located at 414 North Washington is a foreclosed, single family home in fair condition. The project would include acquisition and minor rehabilitation to the property funded by the Neighborhood Stabilization Program (NSP) grant. Once the project is complete, the City of Janesville will market the house to a low to moderate income individual or family to be used as an owner occupied home. The City will place deed restrictions on the property to assure this owner occupied status. The Victorian style home was built in 1870. The 1318 square foot, two-story property has 3 bedrooms and one and a half baths and an approximately 400 square foot detached garage. It appears that the previous owners had begun rehabilitation of the home prior to the foreclosure. The City will continue this minor rehabilitation that is generally cosmetic in nature. The City has negotiated a purchase price of $40,750 by way of a real estate auction. This falls within the limits established in the grant application. 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 2009-614). B. The property is zoned R-3, General Residential. C. The project will include acquisition and minor rehabilitation of the property funded through the Neighborhood Stabilization Program (NSP) grant. D. The project is consistent with the criteria outlined by the Community Development Authority and the Neighborhood Action Team. The home is located in census tract 4 which has been identified as one of the areas of greatest need in Janesville. The property is directly across from th Washington Park. The property is listed as “fair” in the 4 Ward and Look West Housing Condition Report. 2 E. The project is consistent with the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization Plan as well as the City of Janesville Comprehensive Plan. Plan Commission Action Al Hulick, Development Specialist, presented the written staff report. There was a motion by Commissioner Voskuil with a second by Commissioner Perrotto to forward the acquisition of 414 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 3 RESOLUTION NO. 2009-615 RESOLUTION AUTHORIZING THE ACQUISITION OF REAL PROPERTY LOCATED AT 414 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 anticipates an award of $987,146 through the Neighborhood Stabilization Program (NSP) grant; and WHEREAS , the Neighborhood Stabilization Program (NSP) grant must be used for acquisition, rehabilitation or demolition of foreclosed properties; and WHEREAS , the Community Development Authority (CDA) and the Neighborhood Action Team assisted in formulating criteria for potential Neighborhood Stabilization Program grant projects, including: location in area of greatest need; located within either of the two redevelopment sites as identified in the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization th Plan (Adopted December 8, 2008); properties located along collector, major arterial streets, or minor arterial streets; properties located near schools or parks; properties identified as poor or th fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 &10) WHEREAS , the City of Janesville Administration has negotiated with the owner by way of an auction on May 27, 2009 an offer to purchase 414 North Washington Street in the amount of Forty Thousand, Seven Hundred and Fifty Dollars ($40,750); 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 rehabilitation is the Neighborhood Stabilization Program (NSP) grant: 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. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Prepared by: ÉßÍØ×ÒÙÌÑÒ ÐßÎÕ ÍËÞÖÛÝÌ Í×ÌÛ q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ êñçñðç Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Õóïë ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÓßÐ ï ßÝÏË×Í×Ì×ÑÒ ÑÚ ìïì Ò ÉßÍØ×ÒÙÌÑÒ ÍÌ ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»îððçÄÕóïëÁß½¯«··¬·±²ìïìÒÉ¿¸·²¹¬±² Í¬