#01 Acquisition and demolition of property for open space (File Res. #2009-650)
NEIGHBORHOOD SERVICES MEMORANDUM
October 15, 2009
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a proposed Resolution Authorizing the Acquisition and
Demolition Of Real Properties Located at 1722 Charles Street,
1109 Elgin Avenue, 1715 Joseph Street, 1809 Joseph Street, 1815
Joseph Street, 1821 Joseph Street, 1903 Joseph Street, 1921
Joseph Street, and 809 S Jackson for Open Green Space. (File
Resolution 2009-650)
Summary
On July 28, 2008 the City Council authorized the administration to apply for the
Hazard Mitigation Grant Program. The grant program is administered through
Wisconsin Emergency Management with funding from the Federal Emergency
Management Agency (FEMA). The grant has been approved and offers to
purchase have been authorized by Wisconsin Emergency Management. City
Council approval is required for acquisition and demolition of the properties.
Department Recommendation
The Plan Commission and the Neighborhood Services Department recommend
that the City Council support a motion to approve Resolution 2009-650
authorizing the acquisition and demolition of real properties located at 1722
Charles Street, 1109 Elgin Avenue, 1715 Joseph Street, 1809 Joseph Street,
1815 Joseph Street, 1821 Joseph Street, 1903 Joseph Street, 1921 Joseph
Street, and 809 S Jackson for open green space.
City Manager Recommendation
The City Manager concurs with the Plan Commission and Neighborhood
Services Department recommendations.
Suggested Motion
I move to approve file resolution 2009-650 authorizing the acquisition and
demolition of real properties located at 1722 Charles Street, 1109 Elgin Avenue,
1715 Joseph Street, 1809 Joseph Street, 1815 Joseph Street, 1821 Joseph
Street, 1903 Joseph Street, 1921 Joseph Street, and 809 S Jackson for open
green space.
Background
In June of 2008, the City of Janesville experienced a flood level greater than the
Intermediate Regional Flood (100 year event). The 2008 event was the largest
flood event on record in the City of Janesville. Hundreds of residents were
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evacuated, city buildings and infrastructure were damaged and dozens of
businesses were forced to close their doors.
The subdivision known as Mole & Sadler’s was inundated with flood waters.
Joseph Street was under running water and portions of Charles Street were in
backwater conditions.
On July 28, 2008 the City Council authorized the Administration to apply for the
Hazard Mitigation Grant Program (HMGP). The HMGP assists state and local
communities in implementing long-term hazard mitigation measures following
major disaster declaration. The storms and flooding of June 5 through July 25,
2008, led to a federal disaster declaration, FEMA-DR-1768 WI, in 31 Wisconsin
Counties, including Rock. The program objective is to prevent future losses of
lives and property due to disasters by the acquisition and demolition of
substantially damaged structures in the flood plain. The grant requires that
acquired properties be demolished and left in open green space in perpetuity.
For health and safety reasons the grant does not allow for the structure or any
part of the structure which has incurred substantial damage to be salvaged.
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A public meeting was held in the Municipal Building on August 7, 2008 at which
time homeowners were presented with details of the proposed Hazard Mitigation
Grant Program and interest in participation in the program was explored.
Following the meeting 12 property owners signed the statement of voluntary
participation. The City of Janesville submitted a grant application for the potential
acquisition of 12 substantially damage properties included (11 in Mole & Sadler’s
and one on South Jackson Street). Substantially damaged properties include
those structures with an estimated cost of repair exceeding 50% of the equalized
assessed value per the grant definitions and rules.
The City of Janesville received confirmation of grant approval from Wisconsin
Emergency Management, in a letter dated July 6, 2009, for nine of the 12
properties. Three properties were removed from the grant application by
Wisconsin Emergency Management for environmental concerns. Although we
have not received official denial of funding for those properties, staff have had
conversations with the director of FEMA Region IV, and he had expressed that
they will be denied based on the environmental review. Staff is currently
exploring other funding sources for acquisition of these three properties.
At the time of the grant approval, the City of Janesville had already submitted
pre-flood appraisals on all twelve properties to the state for approval as required
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by the grant. On September 25, 2009, the City of Janesville received
authorization letters to make offers to property owners of the nine approved
properties. The State authorizes the City of Janesville to make offers in the
amount of the pre-flood appraised value minus any duplication of benefits.
Duplication of benefits is any FEMA Home Repair Funds, Flood Insurance Funds
and any other assistance that would be considered a duplication of benefits.
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However, the grant does allow the addition of any flood insurance premiums that
were paid in the last five years. (see Table 1)
City Staff, as well as a grant-paid relocation consultant, met with all property
owners on October 6th, 2009, to discuss relocation benefits, approved appraisals
and next steps. During this meeting, the owners of 1903 Joseph Street
expressed concern over the approved appraised value based on a recent
appraisal that was considerably higher than what was approved by the State
Review Appraiser. Program rules allow property owners to hire a second
appraiser and submit that appraisal to the State for approval. So although Table
1 lists the approved offer to purchase amounts, project number 10 has notified
staff that they will be submitting an appraisal for State review. Staff has included
in the resolution a “not to exceed” clause for this property in the amount of
$82,674.04.
The Hazard Mitigation Grant Program is 75% federally funded through FEMA,
with a 12.5% State Match and a 12.5% Local Match. The local match will be met
by way of the Community Development Block Grant-Emergency Assistance
Program; therefore, no general fund dollars will be used in this project.
Grant rules require that the property remain in open green space and in City
ownership in perpetuity. Staff is exploring prairie grass options for plantings on
these lots thereby minimizing the maintenance requirement for the properties.
Analysis
A. The properties are located in a flood plain
B. The properties have been declared substantially damaged.
C. The acquisition and demolition is funded by the Hazard Mitigation Grant
Program (HMGP) and the Community Development Block Grant-
Emergency Assistance Program (CDBG-EAP)
D. The City Council approved application to the HMGP in July of 2008.
E. The properties will be left as permanent open green space and under City
Ownership.
F. The acquisition and demolition projects are consistent with the City of
Janesville’s Comprehensive Plan.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administration
Jennifer Petruzzello, Neighborhood Services Director
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RESOLUTION NO. 2009-650
A RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTIES
LOCATED AT 1722 CHARLES STREET, 1109 ELGIN AVENUE, 1715 JOSEPH STREET, 1809
JOSEPH STREET, 1815 JOSEPH STREET, 1821 JOSEPH STREET, 1903 JOSEPH STREET,
1921 JOSEPH STREET, AND 809 S JACKSON FOR OPEN GREEN SPACE.
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 of Janesville’s acquisition, development,
improvement, ownership, protection, and conservation of parkland, open space, green space,
riverfront properties, and development properties; and
WHEREAS,
the City of Janesville has been awarded $1,244,750 through the Hazard Mitigation Grant
Program (HMGP) grant to acquire and demolish properties that were substantially damaged in the
2008 Flood Event (Disaster Declaration FEMA-1768-DR-WI); and
WHEREAS
, the Hazard Mitigation Grant Program (HMGP) grant must be used for the acquisition,
demolition, razing, and removal of the improvements upon the properties located at 1722 Charles
Street, 1109 Elgin Avenue, 1715 Joseph Street, 1809 Joseph Street, 1815 Joseph Street, 1821
Joseph Street, 1903 Joseph Street, 1921 Joseph Street, and 809 S Jackson; and
WHEREAS
, Wisconsin Emergency Management has approved the pre-flood property appraisals and
has calculated the offer to purchase amounts based on pre-flood property values minus any
duplication of benefits including FEMA assistance, insurance, and other assistance programs; and
WHEREAS
, Wisconsin Emergency Management has authorized the City of Janesville to make the
following offers to the property owners: 1722 Charles Street ($29,054.68), 1109 Elgin Avenue
($43,636.12), 1715 Joseph Street ($53,799.00), 1809 Joseph Street ($37,299.00), 1815 Joseph
Street ($97,435.60), 1821 Joseph Street ($43,266), 1921 Joseph Street ($77,000), and 809 S
Jackson ($84,426.00); and
WHEREAS
, the owners of the property located at 1903 Joseph Street intend to appeal the approval
as allowed by the HMGP grant rules. The actual amount offered for this property will be determined
by Wisconsin Emergency Management using the aforementioned formula at a price not to exceed
$82,674.04; and
WHEREAS
, the Hazard Mitigation Grant Program requires that acquired properties remain in open
green space and under City ownership in perpetuity; and
WHEREAS
, the Janesville Plan Commission has reviewed these proposed acquisitions on October
19th, 2009 and found them to be consistent with long range City plans, but not commenting upon the
financial aspects of the transactions; and
WHEREAS
, the Common Council hereby find each of these acquisitions are in the best interest of the
public and for the benefit of the community; and
WHEREAS
, the funding sources for the acquisitions and demolition are the Hazard Mitigation Grant
Program (HMGP) and Community Development Block Grant-Emergency Assistance (CDBG-EAP)
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), on behalf of the City of
Janesville, to acquire and close upon the City’s purchase of these Properties from the owners for the
purchase price and otherwise in the manner set forth in the above recitals, and to then use in
perpetuity the acquired properties as open green spaces and otherwise in accord with all Program
rules; 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, Wald Klimczyk
Proposed by: Neighborhood Services
Prepared by: Neighborhood Services