#09 Approve acquisition of 212 Madison Street (Res. #2009-631)
NEIGHBORHOOD SERVICES MEMORANDUM
August 12, 2009
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Rehabilitation of 212 Madison Street (File Res. 2009-631)
Summary
The Neighborhood Services Department has received a Neighborhood
Stabilization Program (NSP) grant award of $1,003,743 to acquire, rehabilitate,
demolish and redevelop foreclosed and abandoned properties. The property
located at 212 Madison Street 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 2009-631
authorizing the purchase of the property located at 212 Madison Street, at a price
not to exceed $41,000 as part of the Neighborhood Stabilization Grant Program
(NSP).
City Manager Recommendation
The City Manager concurs with the recommendation.
Suggested Motion
I move to approve file resolution 2009-631 authorizing the purchase of 212
Madison Street, at price not to exceed $41,000 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 has received an award of $1,003,743.
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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
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December 8, 2008); properties located along collector, major arterial streets, or
minor arterial streets; properties located near schools or parks; properties
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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 212 Madison 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
middle 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 single family home was built in approximately 1900. The 1550 square foot,
two-story property has 3 bedrooms and one bath. It appears that the previous
owner began rehabilitation of the home prior to the foreclosure. The City will
continue with the rehabilitation that is generally cosmetic in nature. Our grant
includes an average estimated rehabilitation cost per single family property of
$40,000 in NSP, $11,000 in Lead Hazard Reduction and $3000 in Focus on
Energy funding. Rehabilitation costs on this project are anticipated to be within
that budget.
The City has an accepted offer at a purchase price of $41,000 contingent upon
Council approval. This falls within the limits established in the grant application.
Add appraised value here when updating for PC recommendation.
Analysis
A. The property is zoned R-4, Central Residence.
B. The project will include acquisition and minor rehabilitation of the property
funded through the Neighborhood Stabilization Program (NSP) grant.
C. 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
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greatest need in Janesville. The property is listed as “fair” in the 4 Ward
and Look West Housing Condition Report.
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D. This property is identified in the Look West Redevelopment Concept area
in the Look West & Old Fourth Ward Neighborhood Revitalization Plan for
residential infill. This concept includes renovation of historic homes.
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
Gale Price. Manager of Building and Development Services, presented
the written staff report. There was a motion by Commissioner Voskuil with
a second by Commissioner Helgerson to forward the acquisition of 407
Lincoln 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
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RESOLUTION NO. 2009-631
RESOLUTION AUTHORIZING THE ACQUISITION AND REHABILITATION OF REAL
PROPERTY LOCATED AT 212 MADISON 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 has been awarded $1,003,743 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
th
Fourth Ward Neighborhood Revitalization 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 fair condition
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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 an offer to purchase
212 Madison Street in the amount of Forty One Thousand dollars ($41,000); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
August 17th, 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: