#7 Approve acquisition and rehabilitation of 808 West Holmes (File Res. #2010-698)
NEIGHBORHOOD SERVICES MEMORANDUM
April 12, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Rehabilitation of 808 West Holmes Street (File Res. 2010-698)
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 808 W Holmes 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 2010-698
authorizing the purchase of the property located at 808 West Holmes Street, at a
price not to exceed $43,875 as part of the Neighborhood Stabilization Grant
Program (NSP).
City Manager Recommendation
Suggested Motion
I move to approve file resolution 2010-682 authorizing the purchase of 416 South
Jackson Street, at price not to exceed $43,875 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
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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 808 West Holmes is a foreclosed single family home in
average condition. Bank of America National Association in Pittsburg,
Pennsylvania foreclosed on the property on December 17, 2009. The project
would include acquisition and 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.
Neighborhood Services has completed the NSP/CDBG required environmental
assessment on this property. Our assessments include a Statutory Worksheet
that addresses Historic Preservation, Floodplain Management, Wetlands
Protection, Coastal Zone Management, Sole Source Aquifers, Endangered
Species, Wild and Scenic Rivers, Air Quality, Farmland Protection, and
Manmade Hazards. Our assessments have been approved Department of
Commerce, Department of Environmental Review.
The single family home was built in approximately 1870. The 2100 square foot,
two-story home has 4 bedrooms and 2 baths. The home requires minor
rehabilitation. The City will update the interior and make all necessary exterior
repairs including paint and windows.
The City has a pending offer at a purchase price of $43,875 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 $45,000.
Analysis
A. The property is zoned R-2, Limited General Residence.
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B. The project will include acquisition and 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 3 which has been identified as one of the areas of
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greatest need in Janesville. The property is listed as “average” 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
There was a motion by Commissioner Zolidis seconded by Commissioner
Helgerson to find the proposed acquisition of 808 West Holmes Street consistent
with established City plans and 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 7-0-0 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. 2010-698
RESOLUTION AUTHORIZING THE ACQUISITION AND REHABILITATION OF REAL
PROPERTY LOCATED AT 808 WEST HOLMES 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
808 West Holmes Street in the amount of Forty Three Thousand Eight Hundred
Seventy Five dollars ($43,875.00); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
April 19th, 2010 and found it to be consistent with long range City plans, but not
commenting upon the financial aspects of the transaction; and
WHEREAS
, this property and structure satisfy the criteria and purposes of the City and
the above programs; and
WHEREAS
, the Common Council hereby find that said acquisition and rehabilitation 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 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 808 W Holmes in the amount of Forty Three
Thousand Eight Hundred Seventy Five dollars ($43,875.00) 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:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Development Specialist
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