#2 Authorize acquisition & rehabilitation of 409 S Franklin (File Res. #2010-667)
NEIGHBORHOOD SERVICES MEMORANDUM
January 13, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Rehabilitation of 409 S Franklin Street (File Res. 2010-667)
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 409 S Franklin 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 2010-667
authorizing the purchase of the property located at 409 S Franklin Street at a
price not to exceed $25,000 as part of the Neighborhood Stabilization Grant
Program (NSP).
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move to approve file resolution 2010-667 authorizing the purchase of 409 S
Franklin Street, at price not to exceed $25,000 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.
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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. The City of Janesville has received an award of $1,003,743. 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
th
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 409 S Franklin Street 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 2000 square foot,
two-story colonial style home has 4 bedrooms and one and one bath and an
approximately 676 square foot detached garage. The home required minor
rehabilitation. The City will update the interior and make all necessary interior
repairs. The property has been vacant and bank owned since September 2009.
The City has an accepted offer at a purchase price of $25,000 conditioned upon
City Council approval. This falls within the limits established in the grant
application. An appraisal of this property was completed by Modern Appraisal
Services, LLC and they determined the value of the property to be at $42,000.
Analysis
A. The property is zoned R-2, Limited General 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. 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
Brad Cantrell, Community Development Director, presented the written staff
report.
Commissioner Werner stated that he would be abstaining from voting on the
acquisition since he didn’t know which banks were involved.
There was a motion by Commissioner Adams with a second by Chairman
Helgerson 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.
The motion carried on a 4-0-1 vote with Commissioner Werner abstaining.
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. 2010-667
RESOLUTION AUTHORIZING THE ACQUISITION AND REHABILITATION OF REAL
PROPERTY LOCATED AT 409 S FRANKLIN 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
th
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
409 S Franklin Street in the amount of Twenty Five Thousand ($25,000); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
January 18, 2010 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: Neighborhood Services Department
Prepared by: Neighborhood Development Specialist
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