The URL can be used to link to this page

#2 Acquisition and rehabilitation of 159 Cherry (File Res. #2010-668) 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 159 Cherry Street (File Res. 2010-668) 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 159 Cherry 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 2010-668 authorizing the purchase of the property located at 159 Cherry Street, at a price not to exceed $47,500 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 2010-668 authorizing the purchase of 159 Cherry Street, at price not to exceed $47,500 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. 1 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 th 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 159 Cherry Street is a foreclosed home in fair condition. At one time the property had been used as three unit rental property; however staff has been told by neighboring property owners and the real estate agent that the property has been most recently used as a single family home. 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 1870. The 2100 square foot, two-story home has 4 bedrooms, one bath, and an approximately 864 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 October 2009. The City has an accepted offer at a purchase price of $47,500 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 $50,000. Analysis A. The property is zoned R-3, 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 2 th greatest need in Janesville. The property is listed as “fair” in the 4 Ward and Look West Housing Condition Report. 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 3 RESOLUTION NO. 2010-668 RESOLUTION AUTHORIZING THE ACQUISITION AND REHABILITATION OF REAL PROPERTY LOCATED AT 159 CHERRY STREET WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17)(a), 62.23 (17)(b), 66.0101, 62.11(5), Chapter 32, and other pertinent Wisconsin Statutes permit the City’s acquisition, development, ownership, protection, improvement, conservation, public use, demolition, disposition, and other disposal of parkland, open space, riverfront properties, blighted properties, redevelopment, and development properties; and WHEREAS, the City of Janesville has been awarded $1,003,743 through the Neighborhood Stabilization Program (NSP) grant; and WHEREAS , the Neighborhood Stabilization Program (NSP) grant must be used for acquisition, rehabilitation, or demolition of foreclosed properties; and WHEREAS , the Community Development Authority (CDA) and the Neighborhood Action Team assisted in formulating criteria for potential Neighborhood Stabilization Program grant projects, including: location in area of greatest need; located within either of the two redevelopment sites as identified in the City of Janesville Look West & Old th Fourth Ward Neighborhood Revitalization Plan (Adopted December 8, 2008); properties located along collector, major arterial streets, or minor arterial streets; properties located near schools or parks; properties identified as poor or fair condition th on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 &10); and WHEREAS , the City of Janesville Administration has negotiated an offer to purchase 159 Cherry Street in the amount of ______________ ($________); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on January 17, 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 Council find this acquisition and proposed public use(s) in the best interest of the City and of benefit to the public; 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 the City’s acquisition of 159 Cherry Street in the amount of ____________ Dollars ($________) for the above described public purpose(s) is hereby approved and authorized; the City Manager and/or his designee(s) may acquire and close upon the City’s purchase of the Property from the owner(s) 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: Wald Klimczyk, City Attorney Proposed by: Neighborhood Services Department Prepared by: Neighborhood Development Specialist q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ ïñïïñïð Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Ôóïì ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ïëç Ý¸»®®§ Í¬®»»¬ ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ