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#04 Sale of 1728 N Washington Memo Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Action on a proposed resolution authorizing the sale of the former Riverside Plating property at 1728 North Washington Street (File Resolution No. 2009-618). RECOMMENDATION The Community Development Department and Plan Commission recommend that the City Council support a motion to approve File Resolution No. 2009-618 which authorizes the sale of land at 1728 North Washington Street. City Manager Recommendation The City Manager recommends approval. SUGGESTED MOTION I move to approve File Resolution 2009-618 authorizing the sale of land located at 1728 North Washington Street for $13,500 to Brian C. Bailey. BACKGROUND The City Administration has negotiated the sale of property located at 1728 North Washington Street for $13,500 to Brian C. Bailey (owner of The Watering Hole). The property is approximately 0.8 acres in size, is zoned B3-General Commercial District, and is undeveloped. The City intends to sell the land to Brian Bailey who plans to develop the site with additional parking for his business, the Watering Hole, which directly adjoins the subject site to the west. The subject site was formerly owned by the Riverside Plating Corporation which operated until 1993. The City took ownership of the property in 2007 and the City Council declared the property as surplus at that time. The City has been working with Mr. Bailey to develop an appropriate site plan for the site and reach an acceptable sales agreement. This sales agreement will allow the City to recoup a majority of the costs associated with the acquisition and restoration of the site and place the property back on the City’s tax roll. State Statues require that Plan Commission review the proposed sale of surplus property to ensure consistency with established City plans. The recently adopted Comprehensive Plan Land Use Map indicates this property as appropriate for Neighborhood Commercial. Therefore, staff believes this land sale is consistent with established City plans. ANALYSIS A. The City has negotiated an agreement to sell the undeveloped property located at 1728 North Washington to the adjoining property owner, Brian Bailey. Mr. Bailey intends to develop the site with additional parking for his business which adjoins the subject site at 1700 North Washington. Mr. Bailey has also expressed interest in developing an outdoor volleyball court on the site, which is a conditional use within the B3 zone district. Plan Commission review and approval is required for all conditional use applications which will be reviewed at a future date. B. The subject site was formerly owned by the Riverside Plating Corporation which operated until 1993. DNR Environmental violations and failure to meet the City’s pre-treatment standards for wastewater caused the operation to cease. Since that time, the property went into foreclosure, and Rock County assumed ownership by default. The property’s environmental concerns have been remediated, the site has been restored to open space, and the City took ownership of the property from the County in 2007. At the time the City took ownership of the site, the City Council declared the property as surplus. The City has been working with Mr. Bailey (the adjoining property owner) since that time to develop an appropriate site plan for the site and reach an acceptable sales agreement. This sales agreement will allow the City to recoup all costs associated with the acquisition and restoration of the site. Additionally, this property has been under public ownership for several years, and this sale will put the property back on the City’s tax roll. C. At their June 15, 2009 the Plan Commission reviewed this sale of land to ensure that the proposed sale of surplus land was consistent with established City plans. The recently adopted Comprehensive Plan Land Use Map indicates this property as appropriate for Neighborhood Commercial. Mr. Bailey’s business is currently non-conforming due its deficiency in parking. This land sale will allow him to expand his parking and bring his business into compliance. Additionally, the City has required that Mr. Bailey remove concrete improvements in the North Washington Street and Parkside Drive right-of-way and relocate his Parkside Drive entrance further away from the North Washington Drive intersection to increase visibility and safety at that intersection. Therefore, based on these circumstances, City staff and the Plan Commission feels that this land sale is appropriate and consistent with established City plans. PLAN COMMISSION ACTION – 15 JUNE 2009 Al Hulick, Development Specialist, presented the written staff report. Commissioner Vouskil asked if time frame had been set for Mr. Bailey to develop the site with a parking lot. Hulick indicated that the sales agreement was contingent upon Mr. Bailey developing the site with a parking lot within two years. The Plan Commission unanimously agreed to forward the acquisition to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of this transaction. cc: Brad Cantrell Duane Cherek RESOLUTION NO. 2009 – 618 A resolution authorizing the City Manager to proceed with the sale of surplus property located at 1728 North Washington Street. WHEREAS, the City of Janesville owns the following described parcel: MOLE & SADLER'S Addition portions of lots 6-7-8-9-10-11 & 12 block 21, City of Janesville, Rock County, Wisconsins. Commencing at the SE corner of LOT 13 then heading S32º04'W 17.75' to beginning; then heading N56º56'W 74.92'; then heading N12ºOO'W 100'; then heading S78ºW 68' TH S12ºE 100' S78ºW 132' to west line of LOT 8; then heading S12ºE 73.2'; then heading N78ºE100'; then heading S12ºE to north line of ELGIN AV; then heading northeasterly to point of beginning. WHEREAS , the property consists of approximately 0.8 acres of land located at 1728 North Washington Street and was purchased from Rock County in 2007 through foreclosure proceedings pursuant to Wisconsin State Statute 785.17 in exchange for the City’s share of back taxes for the previous three years; and WHEREAS , the property was formerly owned by the Riverside Plating Corporation which ceased operations due to environmental concerns which have since been remediated and the site has been restored to green space; and WHEREAS , the City of Janesville has negotiated an agreement to sell the property to Mr. Brian C. Bailey for $13,500.00, and Mr. Bailey has agreed to develop the site with additional parking for his adjacent business; and WHEREAS , the Plan Commission has reviewed this land sale at their June 15, 2009 meeting and found the sale to be consistent with established City plans and recommended that the City Council proceed with the sale of this property, but further noted that the Plan Commission had not reviewed the financial aspects of this transaction; and WHEREAS , the Common Council of the City of Janesville declared this property to be surplus property on October 22, 2007 and thus no longer is needed for City purposes and that the proposed transaction is to the benefit and best interest of the citizens and the City of Janesville. NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville that it hereby authorizes and directs the City Manager and the City Clerk to execute on behalf of the City of Janesville, the sale of such property; and to negotiate and execute such documents, papers and forms as may from time to time be necessary and/or desirable to effectuate such transaction and the intent of this resolution as the City Manager may decide; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take whatever other actions or to make whatever other minor changes that may be necessary to effectuate this land transaction. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. 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