#6 Authorize sale of 189 South High Street (File Res. #2010-749)
NEIGHBORHOOD SERVICES MEMORANDUM
October 29, 2010
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the Sale of Property
Located at 189 S High Street as Part of the Buy Rehab and Resell
Program (File Res. 2010-749)
Summary
The Neighborhood Services Department has completed the rehabilitation of the
property located at 189 South High Street as part of the Buy, Rehab and Resell
Program. An interested party has submitted a valid offer to purchase at the
City’s asking price of $95,000 and City Council approval is necessary to finalize
the sale.
Department Recommendation
The Neighborhood Services Department recommends that the City Council
support a motion to approve Resolution 2010-749 authorizing the sale of the
property located at 189 South High Street at a sales price of $95,000.00.
City Manager Recommendation
The City Manager concurs with the Neighborhood Services Department
recommendation.
Suggested Motion
I move to approve file resolution 2010-749 authorizing the sale of 189 South High
Street at a sales price of $95,000.00.
Background
In June of 2006, the Community Development Authority (CDA) was presented a
report of the Housing Loan Programs. In 2007, the CDA adopted the Buy,
Rehab, Resell program and allocated Community Development Block Grant
funding for this program through the State and Federal Grants budget.
The goals of the Housing and Homeownership Programs, including the Buy,
Rehab, Resell program, consist of: stabilizing the neighborhoods by increasing
the number of owner-occupied properties, reducing the incidences of slum and
blight by providing low or no interest loans to property owners to encourage
appropriate rehabilitation, maintaining the quality of the affordable housing stock
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of the community, and reducing the density of housing units within these
neighborhoods.
The Buy, Rehab, Resell program requires that all program property be located in
the “Target Area” as defined by the CDA (see attached map). In addition, the
CDA must compare the proposed property against the following list of criteria;
appraisal and listing price analysis, cost (purchase price, rehabilitation and
holding costs), visibility, impact on the neighborhood, potential for energy
efficiency improvements, assessor’s estimate for after-improvement value and
long-term affordability of the property.
On November 19, 2008 the CDA approved the purchase of 189 S High Street to
be rehabilitated under the Buy, Rehab and Resell program. The City Council
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also approved this acquisition on December 8, 2008.
This home was chosen for the project because it is located on a corner lot with a
high degree of visibility. The home has a great deal of architectural character
and significance in the neighborhood. Assessment roll and directory research
indicate that J.W. St. John owned the land on which this house was built in about
1890. St. John was a physician and served as mayor of Janesville in 1875-76
and as president of the board of education.
The project involved the conversion of a two unit rental property into a single
family dwelling. A small addition was removed from the rear of the property in
order to make room for a new 1 ½ car detached garage. The entire inside was
gutted, the home was insulated, and a new furnace and new windows were
installed with the goal of making the building much more energy efficient. All
lead paint was removed from the home. Staff maintained as much of the original
structure and character of the house as possible including the hardwood flooring
on the first floor and the original stairway extends to the top of the turret. The
carpeting on the second story is made of recycled soda bottles and the mulch in
the landscaping is made of automobile tires.
The project was put on the market on August 23, 2010 and Neighborhood
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Services received an offer from Linda Wells-Toso on September 8, 2010 with a
purchase price of $95,000.00 contingent upon an appraisal. An appraisal was
done and the property appraised at $95,000. The buyer meets the income
requirements of the program and closing is tentatively set for November 12,
2010. The property will be deed restricted as owner occupied, single family.
Analysis
A. The property was purchased by the City of Janesville for the Buy, Rehab
and Resell program.
B. City Council set the asking price during a closed session on May 24, 2010
and the sales price falls within the guidance provided by the Council.
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C. The intended buyer meets the requirements of the Buy, Rehab and Resell
program.
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 – 749
A resolution authorizing the City Manager to proceed with the sale of property located at 189
South High Street
WHEREAS,
the City of Janesville owns the following described parcel:
The S. 66’ of the W1/2 of Lot 46, Doe’s Addition, City of Janesville, Rock County, Wisconsin; excepting
the East 58 feet thereof.
WHEREAS
, The City of Janesville acquired the property located at 189 S High Street in December of
2008, through the Buy, Rehab and Resell Program with CDBG funds; and
WHEREAS,
The City of Janesville has rehabilitated the property consistent with the Buy, Rehab and
Resell Program Manual; and
WHEREAS
, The City of Janesville has negotiated an agreement to sell the property to Ms. Linda Wells-
Toso for $95,000.00; and
WHEREAS,
The City of Janesville has obtained a copy of an appraisal of the property in the amount of
$95,000; and
WHEREAS,
The City of Janesville has verified that Ms. Wells-Toso is within the program criteria; and
WHEREAS,
The Property known as 189 S High Street shall remain an owner occupied dwelling until
such time as the CDA and the City Council remove the requirement following a request by the property
owner; and
WHEREAS,
The Common Council finds that it is in the best interest and benefit of the community to sell
this property for $95,000.00; and
WHEREAS
, the Plan Commission has reviewed this land sale at their December 1, 2008 meeting and
found the sale to be consistent with established City plans and recommended that the City Council
proceed with the sale of this property, but further noted that the Plan Commission had not reviewed the
financial aspects of this transaction; and
NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL
of the City of Janesville that it
hereby authorizes and directs the City Manager and the City Clerk to execute on behalf of the City of
Janesville, the sale of such property; and to negotiate and execute such documents, papers and forms as
may from time to time be necessary and/or desirable to effectuate such transaction and the intent of this
resolution as the City Manager may decide; and
BE IT FURTHER RESOLVED
that the City Manager is hereby authorized to take whatever other actions
or to make whatever other minor changes that may be necessary to effectuate this land transaction.
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:
Assistant City Attorney
Proposed by: Neighborhood Services
Prepared by: Neighborhood Development Specialist