The URL can be used to link to this page

#5 Acquisition of flood properties (File Res. #2009-662) NEIGHBORHOOD SERVICES MEMORANDUM December 3, 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 1708 Charles Street and 1709 Joseph Street for Open Green Space. (File Resolution 2009- 662) Summary On November 23, 2009 the City Council authorized the administration to submit and amendment to the Community Development Block Grant-Emergency Assistance Grant to include the acquisition of the properties that were damaged by the 2008 flood, but were not eligible for the Hazard Mitigation Grant Program. The City of Janesville currently has a contract with the State of Wisconsin Department of Commerce for administration of this grant. Staff has submitted an amendment to the initial application and anticipates receiving an award that would allow for the purchase of the two properties located at 1708 Charles Street and 1709 Joseph Street. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2009-662 authorizing the acquisition and demolition of real properties located at 1708 Charles Street and 1709 Joseph Street for open green space. City Manager Recommendation The City Manager concurs with the recommendation. Suggested Motion I move to approve file resolution 2009-662 authorizing the acquisition and demolition of real properties located at 1708 Charles Street and 1709 Joseph Street subject to grant funding 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 evacuated, city buildings and infrastructure were damaged and dozens of businesses were forced to close their doors. 1 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 City of Janesville submitted twelve properties for review under this program. On July 1st, 2009, Wisconsin Emergency Management contacted staff to inform them that nine of the twelve properties had been approved by FEMA; however three properties were removed from the application because of concerns about ground water contamination. On nd November 2, 2009, the City of Janesville received an official denial from FEMA regarding the properties located at 1708 Charles Street, 1709 Joseph Street and 1110 Hamilton Street. The sites were identified as contaminated during the environmental review process. Although the DNR has written a clearance letter for these properties citing natural attenuation as the only solution to the contamination issue, FEMA will not fund the acquisition of these properties. Therefore, Staff has pursued other funding sources for these flood damaged properties. The Community Development Block Grant-Emergency Assistance Program can be used to fund the acquisition of properties damaged by the 2008 flood that were owner occupied by a low to moderate income household. Two of the three properties that we denied by FEMA qualify for this grant funding (the third th property will be discussed in closed session on December 14) The City of Janesville has submitted an amendment to the original CDBG-EAP contract with the Wisconsin Department of Commerce and anticipates funding for the acquisition of the properties located at 1708 Charles Street and 1709 Joseph Street. Similar to the Hazard Mitigation Grant Program rules, offers to purchase are based on a pre-flood appraisal minus any duplication of benefits including insurance and FEMA assistance. Staff has verified with Wisconsin Department of Commerce that the appraisals and review that were accepted by Wisconsin Emergency Management will also be approved by Commerce. Using this formula, the offer to purchase for 1708 Charles Street is $43,212.29 and for 1709 Joseph is $68,383.12. The participation in this “Buy-Out” is completely voluntary and the citizens could choose to terminate negotiations with the city at any time. The grant requires that acquired properties be demolished and left in open green space in perpetuity. Staff is exploring prairie grass options for plantings on these lots thereby minimizing the maintenance requirement for the properties. For health and 2 safety reasons the grant does not allow for the structure or any part of the structure which has incurred substantial damage to be salvaged. City Staff, as well as a grant-paid relocation consultant, met with the two property owners on November 19th, 2009, to discuss relocation benefits, approved appraisals and next steps. The Community Development Block Grant-Emergency Assistance Program does not have a local match requirement. Analysis A. The properties are located in a flood plain B. The properties have been declared substantially damaged. C. The structures are currently vacant. D. The properties are considered unbuildable at this time. E. The acquisition and demolition is funded by the Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) F. The City Council approved the amendment to the CDBG-EAP at the November 23, 2009 meeting. G. The properties will be left as permanent open green space and under City Ownership. H. The acquisition and demolition projects are consistent with the City of Janesville’s Comprehensive Plan. Plan Commission Minutes Duane Cherek, Manager of Planning Services, presented the written staff report. Chairperson Helgerson questioned if documented environmental contamination posed a concern during demolition of the properties. Cherek indicated that since the contamination exists in groundwater and soils below the surface, removal of structures should not result in exposure of those materials. Cherek stated the DNR indicates that the contamination will disappear over time through natural attenuation. Upon building removal, the properties will be restored and maintained as green space. There was a motion by Commissioner Perrotto to forward the proposed acquisition of 1708 Charles Street, 1709 Joseph Street and 1110 Hamilton Avenue to the City Council noting that the Plan Commission has not reviewed the financial aspects of this transaction. Commissioner Voskuil seconded the motion. The motion carried on a 6-0-0 vote. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 3 RESOLUTION NO. 2009-662 A RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTIES LOCATED AT 1708 CHARLES STREET AND 1709 JOSEPH STREET 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 applied for and anticipates being awarded funding through the Community Development Block Grant (CDBG-EAP) grant to acquire and demolish properties that were substantially damaged in the 2008 Flood Event (Disaster Declaration FEMA- 1768-DR-WI) and did not qualify for the Hazard Mitigation Grant Program (HMGP); and WHEREAS , the Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) grant may be used for the acquisition, demolition, razing, and removal of the improvements upon the properties located at 1708 Charles Street and 1709 Joseph Street,; and WHEREAS , Wisconsin Department of Commerce has accepted the Emergency Management approved 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 , the City of Janesville anticipates making the following offers contingent upon Community Development Block Grant-Emergency Assistance Program funding: 1708 Charles Street ($43,212.29) and 1709 Joseph Street ($66,383.12); and WHEREAS , the Community Development Block Grant-Emergency Assistance 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 December 7th, 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 source for the acquisitions and demolition is 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 Î±½µ Î·ª»® ïéðç ïéðè Ö±»°¸ Ý¸¿®´» q Ô»¹»²¼ Ú´±±¼©¿§ øßÛ÷ Í«¾¶»½¬ Ð®±°»®¬·» ïððóÇ»¿® Ú´±±¼ øßÛ÷ Ü¿¬»æ ïïñíðñðç Í½¿´»æ ïþã ïððù ëððóÇ»¿® Ú´±±¼ øÈ÷ Ó¿° Ý±±®¼·²¿¬»æ Õóïè ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ßÝÏË×Í×Ì×ÑÒ ÑÚ ÐÎÑÐÛÎÌ×ÛÍ É×ÌØ×Ò ÌØÛ ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÓÑÔÛ ú ÍßÜÔÛÎ ßÜÜ×Ì×ÑÒ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄîððçÄÕóïèÁß½¯«··¬·±²óÓ±´»óÍ¿¼´»®óÐ®±°»®¬·»