#05 Approve acquisition and demolition of 321 E Court (File Res. #2010-709)
NEIGHBORHOOD SERVICES MEMORANDUM
May 17, 2010
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and
Demolition of Property at 321 E Court Street (File Resolution 2010-
709)
Summary
Five hundred Thousand ($500,000) dollars were included within the 2009 Note
Issue for neighborhood and downtown property acquisitions. Funding for
neighborhoods was included to acquire vacant and/or blighted properties in the
central city residential neighborhoods and the downtown area.
The property located at 321 E. Court Street is a vacant 4-5 unit rental property
located at the corner of E. Court Street and Wisconsin Street. This property is
located within Census Tract 1, downtown. The property was foreclosed on in
December of 2009 and is currently owned by Blackhawk State Bank. The
property has significant structural issues and staff recommends that the
residences be demolished.
An offer to purchase the property has been negotiated in the amount of $29,000,
subject to City Council approval. The property would then be demolished at an
estimated cost of $30,000. The site would be restored as green space and
offered for sale to adjoining property owners.
Department Recommendation
Neighborhood Services Staff is recommending that the City acquire the
residential property located at 321 E. Court Street under the Neighborhood and
Downtown Blight Elimination Program for the purpose of blight elimination and
neighborhood stabilization.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move to approve File Resolution #2010-709 authorizing the purchase and
demolition of real property located at 321 E Court Street for the purpose of blight
elimination and neighborhood stabilization as consistent with the City of
Janesville Comprehensive Plan and Look West and Old Fourth Ward
Neighborhood Revitalization Plan.
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Background
The property located at 321 E. Court Street is a vacant 4-5 unit rental property
located at the corner of E. Court Street and Wisconsin Street. This property is
located within Census Tract 1, downtown. The property was foreclosed on in
December of 2009 and is currently owned by Blackhawk State Bank. The
property has significant structural issues and staff recommends that the
residences be demolished.
The property is zoned O2H, Central Office/Residential Historic Overlay District.
The property is listed as a non-contributing residence within the Courthouse Hill
Historic District. The property is currently in a blighted condition.
The subject property includes a 4-5 unit home, classified as other vernacular
style, and built in approximately 1900. The lot is 66 feet wide by 85 feet deep,
totaling .129 acres. There is a 3,084 square foot, 2 story, 4-5 unit home located
on a visible corner lot and a detached garage. Staff is recommending that the
structure be demolished upon acquisition due to the poor interior and exterior
condition of the building. Significant structural issues exist. The estimated cost for
demolition is $30,000. Any salvageable materials will be offered to Habitat for
Humanity.
Following demolition, the property will be considered surplus and will be offered
for sale to the adjoining property owners. The City has negotiated a purchase
price of $29,000, subject to approval of the Plan Commission and City Council.
The property has an appraised value of $48,000 and an assessed value of
$96,800.
Engineering staff has completed a phase I environmental review, including a
review of past land uses and any documented dangerous or concerning past
environmental uses. There are not any environmental concerns with this
property.
Funding for the acquisition and demolition of this property and relocation benefits
is anticipated to cost approximately $59,000 and is proposed to be funded
through the 2009 note issue funding. The 2009 note issue included $500,000 in
funding for vacant and/or blighted projects. Funding is proposed in recognition of
the major neighborhood planning effort underway and the insufficient funds that
are available under the Community Development Block Grant (CDBG) Program.
This would be the fourth property funded under the 2009 note issue funding.
(Other properties funded include: 404-406 Johnson St., 907 McKinley, and 1110
Hamilton St.)
Analysis
The proposed property acquisition is consistent with established City plans as
described below:
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The project is consistent with the City of Janesville Comprehensive Plan, which
calls for the revitalization of neighborhoods that have experienced decline. The
subject property is a non-contributing building in the Courthouse Hill District. The
structure is not historically or architecturally significant and based on its poor
physical condition does not represent a critical use downtown. Removal of this
structure would provide an opportunity to enhance the appearance of this block
and offer potential redevelopment opportunities consistent with the character of
traditional downtown development.
The project is consistent with The Look West and Old Fourth Ward
Neighborhood Revitalization Plan, which has been guiding redevelopment efforts
in the surrounding neighborhoods. Specifically, this proposed purchase
eliminates a nuisance property (25 police events over the past 5 years),
increases the rate of home ownership by eliminating a 4-unit rental property,
improves the neighborhood condition for surrounding property owners, and
eliminates poor quality housing. This proposal addresses some critical issues of
The Look West and Old Fourth Ward Neighborhood Revitalization Plan,
including:
Our recent experience indicates that many residential properties are being
bought throughout Janesville and are being used as rental properties with no
improvements or minimal improvement being made to the properties. Janesville
does not currently have a shortage of affordable housing (we are hearing of a
15% vacancy rate); although it is arguable that we are experiencing a shortage of
quality affordable housing.
Plan Commission Action
There was a motion by Adams with a second by Perrotto 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 6-0 vote.
Attachments: Property Data Information
Site Map
Property Photos
cc: Eric Levitt, City Manager
Jay Winzenz, Assistant City Manager and Director of Administration
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RESOLUTION NO. 2010-709
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY
LOCATED AT 321 EAST COURT STREET
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 Council approved Five Hundred Thousand Dollars ($500,000) in the 2009
Note issue for neighborhood and downtown property acquisitions, in part to acquire vacant
and/or blighted properties in the central city residential neighborhoods; and
WHEREAS
, the acquisition of 321 East Court Street for the purpose of blight elimination and
neighborhood stabilization is consistent with the City of Janesville Comprehensive Plan and the
City of Janesville Look West and Old Fourth Ward Neighborhood Revitalization Plan adopted
December 8, 2008, which identifies home and property maintenance, home ownership and
parks and open space among the critical issues for neighborhood improvement; and
WHEREAS
, the Janesville Plan Commission has reviewed this proposed acquisition on May 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 City of Janesville Administration has negotiated an offer to purchase 321 East
Court Street in the amount of Twenty-Nine Thousand dollars ($29,000); and
WHEREAS
, the demolition cost is estimated at Thirty Thousand Dollars ($30,000); and
WHEREAS,
the funding source for the acquisition and demolition is the 2009 Note Issue; and
WHEREAS
, the Common Council hereby find that the acquisition and demolition are in the best
interest and for the benefit of the City and its residents and neighborhood.
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 Properties described above from the owners on behalf of
the City in the manner and for the amounts set forth in the above recitals; 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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321 E. Court Street
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321 E. Court Street
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