#4 Approve acquisition of 313 North Pearl (File Res. #2010-704)
NEIGHBORHOOD SERVICES MEMORANDUM
May 4, 2010
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Demolition of 313 North Pearl Street (File Res. 2010-704)
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 313 North Pearl Street is a vacant, 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 2010-704
authorizing the purchase and demolition of the property located at 313 North
Pearl Street, at an acquisition price not to exceed $18,000 as part of the
Neighborhood Stabilization Grant Program (NSP).
City Manager Recommendation
The City Manager concurs with the Plan Commission and Neighborhood Service
Department recommendation.
Suggested Motion
I move to approve File Resolution 2010-704 authorizing the purchase of 313
North Pearl Street, at an acquisition price not to exceed $18,000 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.
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
foreclosed properties for the purpose of rehabilitation, redevelopment, or
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demolition. In the Spring of 2010, the City received an additional allocation of
$77,210, when Rock County decided to allocate its share of funding to the City’s
of Janesville and Beloit.
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 313 North Pearl Street is a foreclosed home owned by
Deutsche Bank National Trust Co. out of Santa Ana, CA. The house, built in
approximately 1900 is 2,330 square feet, and has nine total rooms, including 5
bedrooms and 2 bathrooms. While identified as a single family, the home
appears to have been recently used as a 2-unit.
The property is located in census tract 4, which has been identified as one of the
areas of greatest need. The property is located on a minor arterial street and is
in walking distance to both parks and schools. In addition, the property is
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identified in fair condition according to the 4 Ward and Look West Housing
Condition Report, which consisted of an exterior assessment of the property. The
interior condition is in poor condition. The assessed value of the home and lot is
$88,875. No market appraisal was completed because the negotiated purchase
price is below $25,000, and program rules do not require a formal appraisal.
Staff has toured the property and found the interior of the property in a
considerable state of disrepair. There appears to be significant foundation, roof,
plumbing, heating and lead paint concerns. There is water damage throughout
the home. 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.
The project would include acquisition and demolition of the property funded by
the Neighborhood Stabilization Program (NSP) grant. The estimated cost for
demolition is $17,000. Once the project is complete, the lot will be donated to a
not-for-profit organization for redevelopment. The donation will be conditioned
on approval by staff regarding architectural design of a replacement single-
family, owner-occupied home.
Staff feels that it is more economically responsible to demolish the property and
allow a not-for-profit to rebuild an energy efficient home that would match the
existing style and architecture of the neighborhood. The house would be sold to
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an individual who is low to moderate income. Any materials that are salvageable
will be offered to Habitat for Humanity.
The City has negotiated a conditional purchase price of $18,000. 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 4 which has been identified as one of the areas of
greatest need in Janesville. The property is located along a minor arterial
street. The property is within walking distance of both parks and schools.
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The property is listed as fair condition in the 4 Ward and Look West
Housing Condition Report based on an exterior only inspection. The
property is in a blighted condition.
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 Voskuil with a second by Helgerson to forward the
proposed 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 vote.
cc: Eric Levitt, City Manager
Jay Winzenz, Dir. of Administrative Services/Assistant City Manager
Kelly Lee, Neighborhood Development Specialist
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RESOLUTION NO. 2010-704
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL
PROPERTY LOCATED AT 313 NORTH PEARL 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
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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
313 N Pearl Street in the amount of Eighteen Thousand dollars ($18,000); and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on
May 3, 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 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 the City’s acquisition of 313 N Pearl Street in the amount of Eighteen
Thousand and 00/100 Dollars ($18,000.00) 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:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Services Director
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