#2 Release of deed restrictions for 1114 South Cherry (File Res. #2009-626)
Community Development Department Memorandum
July 27, 2009
TO: Janesville City Council
FROM: Al Hulick, Development Specialist
SUBJECT: Action on a proposed resolution releasing the deed restrictions imposed
by the City of Janesville on 1114 South Cherry Street. (File Resolution
2009-626)
Department Recommendation
The Community Development Department recommends that City Council support a
motion adopting File Resolution 2009-626 releasing the deed restrictions imposed by
the City of Janesville on 1114 South Cherry Street so the property can be sold by
Habitat For Humanity to raise funds for another construction project.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
A motion to approve File Resolution 2009-626 which releases the deed restrictions
imposed by the City of Janesville on 1114 South Cherry Street so the property can be
sold by Habitat for Humanity.
Request
David Thomas, the Executive Director of Habitat For Humanity, has requested the City’s
permission to sell the vacant lot located at 1114 South Cherry Street which the City
donated to Habitat For Humanity in 2007. Habitat For Humanity has negotiated the sale
of property at 1114 South Cherry Street to an adjacent property owner. The funds
raised from the proposed lot sale would be used to help build a new Habitat Home at
1120 South Cherry Street. However, before Habitat For Humanity is allowed to sell the
lot at 1114 South Cherry Street, the City of Janesville must release the deed restrictions
that were recorded on the lot when the property was conveyed to Habitat in 2007.
Background
In 1998, the City acquired several lots in this area as part of a strategic plan to acquire
property adjacent to the west side of General Motors for possible future expansion in
that area. The property is zoned R2-Liminted General Residence District. Once the
City acquired the subject site in 1998, the existing structure was demolished, and the
property has remained undeveloped since that time. However, by 1999, General
Motors had determined that expansion to the west would not be necessary. As a result,
the City Council discontinued its practice of acquiring properties and declared some of
the lots that were acquired in that area as surplus land. In 2007, the City donated five
lots in this area to Habitat For Humanity, including the subject property at 1114 South
Cherry Street. At the time those lots were donated to Habitat, the City of Janesville
imposed several deed restrictions on each of the lots. Those deed restrictions required
that Habitat For Humanity construct a single-family home within 36 months, sell said
home to an income-eligible household, and that Habitat place a deed restriction
requiring that the property only be used for construction and owner occupancy of a
single-family home.
David Thomas, the Executive Director of Habitat For Humanity, has contacted the City
of Janesville and requests permission to sell the 1114 South Cherry Street lot. Habitat
For Humanity has reached an agreement to sell the lot to the adjacent property owner.
Funds from the sale of the lot will be used to help offset the cost to build a new Habitat
Home further down the street at 1120 South Cherry Street. Mr. Thomas indicated that
there has been a decrease in funding to support Habitat Home projects, and through the
sale proceeds they would be able to begin construction of the 1120 South Cherry Street
home later this summer.
Before Habitat For Humanity is allowed to sell the subject property the City of Janesville
must release the above described deed restrictions that were recorded on the lot. The
purpose of these deed restrictions was to ensure that the property would remain as a
single-family owner occupied residence to help revitalized and stabilize the
neighborhood, increase home ownership, and create additional affordable housing
stock. Although those initiatives are still important to the City’s Central Neighborhoods,
City Staff believes that by releasing these deed restrictions for this lot, Habitat For
Humanity will be able to move forward with a project within the same neighborhood and
still work to accomplish their organizational and the neighborhood’s goals. The attached
resolution effectively releases the City’s interests in the recorded deed restrictions, and
would allow Habitat For Humanity to sell the subject lot.
cc: Brad Cantrell
Duane Cherek
RESOLUTION NO. 2009 – 626
A resolution releasing the deed restrictions imposed by the City of
Janesville on 1114 South Cherry Street.
WHEREAS,
the City of Janesville acquired, with General Fund monies, the
following described parcel in 1998 for the purposes of future expansion at the
General Motors Plant as authorized by the City Council by File Resolution No.
98-2353:
Lot 14 of Miltmore’s New Addition, City of Janesville, Tax Parcel Number
4011.00424
WHEREAS
, in 1999 General Motors determined that expansion to the west of
the plant would no longer be necessary, and the City Council discontinued it’s
practice of acquiring properties within this area; and
WHEREAS
, in August 22, 2005 the City Council determined that the four
properties west of the General Motors Plant (including 1114 South Cherry Street)
should be declared as surplus property and sold or donated for housing
redevelopment by File Resolution No. 2005-200; and
WHEREAS
, in February 2007 the City of Janesville donated the lot at 1114
South Cherry Street to Habitat For Humanity with the following deed restrictions:
A. The above recitals are incorporated herein by reference as if fully set
fourth verbatim.
B. Habitat agrees as follows:
1. To build and construct a new single family home upon the
conveyed Subject Property. Construction, including obtaining
permits and the commencement of foundation work, is to begin no
later than 36 months after title to the Subject Property is conveyed
in fee simple to Habitat from the City.
2. To complete construction of the single family home within twelve
months of the date of the issuance of a building permit and to show
proof of completion by providing a copy of an approval final
occupancy inspection from to the City within 30 days of the
issuance of said occupancy inspection form.
3. To sell the completed single family home upon the Subject Property
to an income-eligible household. In the event new eligibility
guidelines are issued between the date of this Agreement and the
time of sale, the most current eligibility guidelines established by
the HOME and CDBG Program Income Limits as provided by the
City Neighborhood Services Department shall be used.
4. Upon filing an application for a building permit for the single family
structure upon the Subject Property, Habitat shall also provide to
the City’s Community Development Department all renderings and
construction plans required of requested by the City for the
structure. Habitat shall concurrently forward copies of said building
plans and renderings to the Janesville Historic Commission for their
prior review and approval in accordance with the Historic Overlay
District regulations included in the City’s Zoning Ordinance and/or
the United States Secretary of the Interior’s Guidelines. The
exterior façade of the proposed single family structure shall be
constructed in accordance with the Historic Commission’s approval
unless otherwise modified by the City Plan Commission.
5. To prepare and maintain records on cash expenditures, donations,
and donated time utilized for this project for not less than seven
years from the date of this Agreement, and to provide and present
those records forthwith in a form and manner directed by the City
and its officials, officers, and employees whenever such records
are requested.
6. To provide to the City a true and correct written, detailed
accounting for all expenditures within six months of the completion
of construction.
7. To place a deed restriction upon the Subject Property at the time of
sale from Habitat to any other Party and said deed restriction shall
run with the land and which shall be binding on Habitat and on each
and every of Habitat’s successors, heirs, and assigns unless said
restriction is waived in writing by the City at the direction of the City
Council. This restriction shall read as follows: “This real property
shall only be used for the construction and owner occupancy of a
single-family home.”
8. Income received from the sale of this home shall be considered to
be “Program Income” and shall be used by Habitat only for
additional new construction or rehabilitation projects to provide
owner occupied housing to income-eligible families. Exceptions to
this condition may only be granted by the City.
WHEREAS
, Habitat For Humanity has requested that the above described deed
restrictions be waived in order to sell the Subject Property to an adjoining land
owner in order to raise funds for a separated Habitat Home Project at 1120 South
Cherry Street.
NOW, THEREFORE, BE IT RESOLVED,
by the Common Council of the City of
Janesville that each and every of the above enumerated deed restrictions
recorded against the Subject Property in March 2007 at the time that the City of
Janesville donated and conveyed the Subject Property to Habitat For Humanity
are each hereby forthwith jointly and severally released, terminated, and of no
further force or effect. The Subject Property is hereby discharged from each and
every said Restriction. The City Administration may record a City Clerk-
Treasurer certified photocopy of this Resolution with the Office of the Register of
Deeds for Rock County setting forth this release, termination, and discharge.
BE IT FURTHER RESOLVED
, that the City Manager, and his designees, are
hereby authorized to negotiate, draft, prepare, execute, file, record, and modify
such other documents, papers, and agreements ancillary and/or pertaining
thereto, and from time to time, to make whatever other minor modifications to the
above-described release of deed restrictions as the City Manager and/or his
designees may deem necessary and/or desirable to effectuate the purposes of
such release of interest and the intent of this Resolution.
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: Community Development Department
Prepared by: Community Development Department