#13 Acquire and demolish 907 McKinley Street (File Res. #2010-694)
NEIGHBORHOOD SERVICES MEMORANDUM
April 2, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a proposed Resolution Authorizing the Acquisition and
Demolition of 907 McKinley Street (File Res. No. 2010-694)
Summary
In an effort to eliminate blighted property and stem the corresponding decline in
property values for adjoining properties, five hundred thousand ($500,000)
dollars was included within the 2009 Note Issue for neighborhood and downtown
property acquisitions. The property located at 907 McKinley is currently a bank
owned property and is a blighting influence to the neighborhood. Acquisition and
demolition of the property located at 907 McKinley Street is consistent with
neighborhood revitalization efforts for the Central City neighborhoods.
Department Recommendation
The Plan Commission and the Neighborhood Services Department recommend
that the City Council support a motion to approve Resolution 2009-694
authorizing the purchase of the property located at 907 McKinley, at an
acquisition price not to exceed $5,000.
Suggested Motion
I move to approve file resolution 2009-694 authorizing the purchase of 907
McKinley Street, at an acquisition price not to exceed $5,000 as part of the
Central City Blight Elimination Project.
Background
Several months ago, the City of Janesville, Neighborhood Services, was
approached by a representative of the Educational Employees Credit Union
regarding a property that they were in the process of foreclosing upon. They
have now taken the property back by way of a deed in lieu of foreclosure. After
representatives from the bank had inspected the property, they decided that they
had no interest in investing in the property to make necessary repairs to make
the property habitable. (see attached letter)
Neighborhood Services has negotiated a purchase price of $5,000 for the
property at 907 McKinley Street. The property has a current assessed value of
$57,800, including an assessed value of $10,000 for the land. No appraisal was
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conducted for this property because the proposed sale price is lower than the
land value. The Engineering Department estimated a demolition cost of$7,500.
The interior of the structure is in very poor condition and staff recommends that
the residence be demolished. The property will be acquired with funds with the
City Council authorized in a 2009 General Fund Note Issue for blight elimination
in the central part of the city. After the property is demolished, the site will be
restored and effort will be made to sell the property or portions of the property to
adjoining property owners. The City currently owns one of the adjoining
properties located at 903 McKinley, and anticipates combining a portion of the lot
with that of 903 McKinley.
The property located at 907 McKinley Street is developed with a two-story single
family residence built in 1855 on a very narrow 5,000 square foot lot. The
property is zoned B3, General Residential. The house is 1,500 square foot with
three bedrooms and one bath. The property does not individually represent a
structure of historic significance to be retained. As with all properties located in
an historic overlay district, permission from the Wisconsin Historical Society will
be obtained before demolition occurs.
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The property is listed in fair condition on the 4 Ward and Look West Housing
Conditions Report; however, this report is based on an exterior inspection from
the public right-of-way. Neighborhood Services did perform an interior inspection
based on a tenant complaint in June of 2009. Based on that inspection, the
structure was found to be unfit for human habitation due to several housing
issues. An Order to Correct was issued at that time, but no repairs have been
made at this time. Included in that order were foundation issues, exposed
electrical wiring, an active roof leak, and damaged and missing stairs. (See
attached order)
The Community Development Authority (CDA) and the Neighborhood Action
Team assisted in formulating criteria for potential Neighborhood Services
Acquisitions, including: location in area of greatest need; located within either of
the two redevelopment sites as identified in the City of Janesville Look West &
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Old 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
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fair condition on the 4 Ward and Look West Housing Condition Report (or of
similar condition for census tracts 6 &10).
Analysis
A. The property is zoned R-3, General Residential.
B. The project will include acquisition and demolition of the property funded
through the 2009 General Fund Note Issue for blight elimination.
C. The project is consistent with the criteria outlined by the Community
Development Authority and the Neighborhood Action Team. The home is
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located in census tract 3 which has been identified as one of the areas of
greatest need in Janesville. The property is listed as fair condition in the
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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
Brad Cantrell, Community Development Director, presented the written staff
report. Commissioner Werner asked if staff was aware of any environmental
issues with the property and if there were any liens against the property. Cantrell
stated he was not aware of any environmental issues on the property other than
lead paint which is typical of a home of this era. He indicated that prior to
processing this through the City Council we would be conducting a letter report to
determine if there were any liens on the property.
There was a motion by Commissioner Werner with a second by Commissioner
Zolidis to forward this item to the City Council with a favorable recommendation.
The motion carried on a 5-0-0 vote.
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. 2010-694
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL
PROPERTY LOCATED AT 907 MCKINLEY 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 Council authorized $500,000 to be used for blight elimination in the
central city in a 2009 General Fund Note Issue ; and
WHEREAS
, the Community Development Authority (CDA) and the Neighborhood
Action Team assisted in formulating criteria for potential Neighborhood Services
Department Property Acquisition 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 December
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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
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condition 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
907 McKinley Street in the amount of Five Thousand dollars ($5,000.00); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
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April 5, 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 finds 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 demolition is the 2009 General
Fund Note Issue Blight Elimination Fund:
NOW, THEREFORE, BE IT RESOLVED
by the Common Council of the City of
Janesville that the City’s acquisition of 907 McKinley in the amount of Five Thousand
dollars ($5,000.00) 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:
Tim Wellnitz, Assistant City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Development Specialist
2330 Kennedy Road
Janesville, Wisconsin 53545
Ph: 608-752-2242
Fx: 608-752-6672
March 23, 2010
City Of Janesville
Attn: Kelly Lee
Re: Tina and Richard Schroeder
Property at 907 McKinley Street, Janesville, WI 53545
To Whom It May Concern,
Educational Employees Credit Union is now holding title on 907 McKinley Street,
Janesville, Wisconsin. The credit union took the property through a deed in lieu of
foreclosure from Tina and Richard Schroeder.
Before offering the property to the city for purchase, the credit union has incurred
expenses. This property had “squatters” residing in the property that we had to go
through a formal eviction to have them vacated from the property. The credit union also
cleared judgement lien off the title. We have worked with Tina and Richard to expedite
the process of getting title on the home versus a true foreclosure. The credit union
understood the city owns 903 McKinley Street and will either rehabilitate or raze that
property. The credit union worked hard to make the title transfer happen quickly in order
for the city to take both properties simultaneously for destruction if applicable. The credit
union realizes the hazard of this property and was trying to assist the city to save money
by getting a quick title.
The credit union is requesting a purchase price of $5,000 for the property located at 907
McKinley Street, Janesville, Wisconsin and will release the property to the city for that
settlement price.
Thank you in advance for your consideration and if you have any questions, please feel to
contact me at 608-752-2242.
Sincerely,
Barbara L. Berken
President
907 McKinley 04/01/10
907 McKinley 04/01/10
August 28, 2009
ORDER TO CORRECT
Owner #09-961
Richard D. Schroeder
Tina R. Schroeder
2908 W. Avalon Rd.
Janesville, WI 53546
RE: 907 McKinley Street
Dear Mr. and Mrs. Schroeder:
907 McKinleySt.,
After a recent inspection regarding your property at the following violations were
found and need to be corrected within thirty (30) days. The Order to Correct is issued pursuant to City
of Janesville Code of General Ordinances and/or Wisconsin Administrative Code Comm 20-25.
16.08.320 1. The front door requires repair and shall be made capable of properly securing.
16.08.470 2. There are exposed electrical wires that shall be properly installed or removed.
16.08.045 3. A working smoke detector is required on each floor level, including the
basement.
PM305.3 4. Interior surfaces: All interior surfaces, including windows and doors, shall be
maintained in good, clean and sanitary condition. Peeling, chipping, flaking, or
abraded paint shall be repaired, removed, or covered. Cracked or loose plaster,
decayed wood, and other defective surface conditions shall be corrected.
16.08.300 5. Exterior walls: Every exterior wall shall be free of holes, breaks, loose or rotted
boards or timbers, and any conditions which admit rain or excessive dampness
to the interior portions of the walls or to the occupied spaces of the building. All
exterior surface materials, including wood, composition, painted masonry, or
metal siding, shall be maintained weatherproof and shall be properly surface
coated by paint or other approved protective coating applied in a workmanlike
manner when required to prevent deterioration and shall be free from peeling
and chips.
16.08.300 6. Foundation walls: All foundation walls shall be maintained so as to carry the
safe design and operating dead and live loads and shall be maintained plumb
and free from open cracks and breaks, so as not to be detrimental to public
safety and welfare.
16.08.300 7. Roofs and drainage: The roof shall be structurally sound, tight, and not have
defects which might admit rain. Roof drainage shall be adequate to prevent
rain water from causing dampness or deterioration in the walls or interior
portion of the building. Roof water shall not be discharged in a manner that
creates a nuisance to owners or occupants of adjacent premises, or that
creates a public nuisance.
16.08.320 8. The basement hatchway door requires replacing and shall be kept in sound
condition and repair.
16.08.310 9. The basement stairs require replacing and shall be adequate for safety as
provided in the building code.
Note: BUILDING PERMIT REQUIRED
16.08.370 10. The second floor stairs require finishing and shall be adequate for safety as
provided in the building code.
September 28,2009,
A reinspection of this property will be conducted on or if you have the corrections
made sooner than the thirty (30) days, please contact our office to arrange a reinspection.
BE ADVISED THAT ONCE THIS BUILDING BECOMES VACANT, IT SHALL REMAIN
VACANT UNTIL ALL VIOLATIONS LISTED ON THIS ORDER HAVE BEEN CORRECTED.
I want to make you aware that failure to comply with this Order to Correct could result in legal action
being taken against you, and a forfeiture of not less than $25 nor more than $500 together with the cost
of prosecution for each violation, and each day that such violation is permitted to continue constitutes a
separate offense. (COJ General Ordinance 16.08.210)
The findings of inspection contained herein are intended to report conditions of non-compliance with
code standards that are readily apparent at the time of inspection. The inspection does not involve a
detailed examination of the mechanical systems or the closed structural and non structural elements of
the building and premises. No warranty of the operation, use, or durability of equipment and materials
not specifically cited herein is expressed or implied.
If you have any questions about these violations, please contact our office at (608)755-3173. Thank you
for your anticipated cooperation in resolving this matter.
Sincerely,
_________________________________________
Timothy Gorman, Property Maintenance Specialist
NEIGHBORHOOD SERVICES
City of Janesville