#3 Acquisition of 215 Linn Street (File Res. #2010-683)
NEIGHBORHOOD SERVICES MEMORANDUM
March 12, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Acquisition and Demolition of 215 Linn Street (File Res. 2010-683)
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 215 Linn 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 2009-683
authorizing the purchase of the property located at 215 Linn Street, at an
acquisition price not to exceed $21,775 as part of the Neighborhood Stabilization
Grant Program (NSP).
City Manager Recommendation
The City Manager concurs with the Neighborhood Services Department
recommendation.
Suggested Motion
I move to approve file resolution 2009-683 authorizing the purchase of 215 Linn
Street, at an acquisition price not to exceed $21,775.00 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.
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 been awarded $1,003,743 to acquire
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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 215 Linn Street is a foreclosed home owned by Federal
Home Loan Mortgage Corporation out of McLean, Virginia. The structure is a
single family, traditional style, two story home built in approximately 1900. The
house has three bedrooms and one and a half baths and is approximately 1700
square feet. There is a small detached garage in poor condition on the parcel.
The property is located in census tract 3, which has been identified as one of the
areas of greatest need. The property is identified in fair condition according to
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the 4 Ward and Look West Housing Condition Report. This was an exterior
assessment of the property and did not take into account the interior condition.
From the front façade this property has been re-sided, therefore an exterior
evaluation from the street side may give a false impression of the condition of the
property.
Staff has toured the property and found the interior of the property in a
considerable state of disrepair. The kitchen cabinets, counters and hardwood
floor are in disrepair. The floors are not level and heave severely in the dining
room area. One of the first floor bedrooms was damaged by a bathroom leak
from the second floor. There are missing doors, severely cracked plaster, and
signs of a leaking basement. The portion of the house that was not re-sided
has extensive chipping and peeling paint. NSP funds may be used to demolish
blighted structures that exhibit signs of deterioration sufficient to constitute a
threat to human health, safety and public welfare. Staff believes that this
property fits this definition.
Modern Appraisal has completed an appraisal on this property and found the fair
market value to be $24,000.
The project would include acquisition and demolition of the property funded by
the Neighborhood Stabilization Program (NSP) grant. The estimated cost for
demolition is $11,000. Once the home is demolished, Neighborhood Services will
contact the adjoining property owners to determine if there is an interest in
acquiring a portion of the vacant lot.
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Any materials that are salvageable will be offered to Habitat for Humanity.
The City has negotiated a conditional purchase price of $21,775. This falls within
the limits established in the grant application.
Analysis
A. The property is zoned R-2, Limited General Residential.
B. The project will include acquisition and demolition 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 3 which has been identified as one of the areas of
greatest need in Janesville. The property is within walking distance of
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both parks and schools. The property is listed as fair condition in the 4
Ward and Look West Housing Condition Report based on an exterior only
inspection.
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
Duane Cherek, Manager of Planning Services will present the report during a
special meeting of the Plan Commission to be held March 22, 2010. Staff
anticipates that Plan Commission will approve as recommended.
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. 2010-683
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL
PROPERTY LOCATED AT 215 LINN ST
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); and
WHEREAS
, the City of Janesville Administration has negotiated an offer to purchase
215 Linn Street in the amount of Twenty One Thousand Seven Hundred and Seventy
Five dollars ($21,775.00); and
WHEREAS
, this property and structure satisfy the criteria and purposes of the City and
the above programs; and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
March 22, 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 Common Council hereby find that said acquisition and demolition as
set forth herein would act in the best interest in and for the benefit of the community, its
residents, businesses, and their general welfare, good order, peace, and tranquility; and
WHEREAS
, the funding source for the acquisition and demolition 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, Wald Klimczyk
Proposed by: Neighborhood Services
Prepared by: Neighborhood Services