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#4 Authorize acquisition and demolition of 513 Linn Street (File Res. #2011-768) NEIGHBORHOOD SERVICES MEMORANDUM January 18, 2011 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and Demolition of Property at 513 Linn Street (File Resolution 2011-768) Summary A total of seven hundred Thousand ($700,000) dollars were included within the 2009 and 2010 Note Issues 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 513 Linn Street is a vacant single family home located on Linn Street just south of Racine Street. This property is located within Census Tract 3, the Historic Fourth Ward. The property was foreclosed on in September of 2010 and is currently owned by Federal Home Loan Mortgage Corporation located in Frederick, Maryland. The interior of the structure is in very poor condition and staff recommends demolition of the property after acquisition. An offer to purchase the property has been negotiated in the amount of $20,000, subject to City Council approval. The property would then be demolished at an estimated cost of $7,500. The site would be restored as green space and maintained until the housing market in the neighborhood stabilizes. At that time, an effort will be made to resell the property or portions thereof to adjoining property owners or an individual or group that would like to redevelop the property with a single family home. Any new construction would be reviewed by staff for compatible neighborhood design and all future sales transactions would return to council for approval. Department Recommendation Neighborhood Services Staff is recommending that the City acquire the residential property located at 513 Linn 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 #2011-768 authorizing the purchase and demolition of real property located at 513 Linn Street for the purpose of blight elimination and 1 neighborhood stabilization as consistent with the City of Janesville Comprehensive Plan and Look West and Old Fourth Ward Neighborhood Revitalization Plan. Background The property located at 513 Linn Street is a vacant single family property located on Linn Street just south of Racine Street. This property is located within Census Tract 3, Historic Fourth Ward. The property was foreclosed on in September of 2010 and is currently owned by Federal Home Loan Mortgage Corporation. The interior of the property is in poor condition and staff recommends that the residence be demolished. The property is zoned R2, Limited General Residence District. The property is listed in th fair condition on the 4 Ward and Look West Housing Condition Report based on an exterior inspection of the property from the street. Upon an interior inspection with a real estate agent, staff noted problems with the plumbing, heating, electrical and building systems. The subject property includes a 1463 square foot, single family, two-story home built in approximately 1910. The lot is 60 feet wide by 132 feet deep, totaling .182 acres. Also on the lot is a 360 square foot two car detached garage. Staff is recommending that the structure be demolished upon acquisition due to the poor interior conditions of the building. The estimated cost for demolition is $7,500. Any salvageable materials will be offered to Habitat for Humanity. The City has negotiated a purchase price of $20,000, subject to approval of the Plan Commission and City Council. The property has an assessed value of $73,900. The site would be restored as green space for the time being and offered to a not for profit for construction of a new single family home or offered for sale to adjoining property owners. Any new construction would be reviewed by staff for compatible neighborhood design and all future sales transactions would return to council for approval Funding for the acquisition and demolition of this property is proposed to be funded through the prior note issue funding. The 2009 and 2010 note issues included $700,000 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. As with all Neighborhood Service Department acquisitions, all salvageable material will first be offered to Habitat for Humanity and then to the contractor who will be selected to complete the demolition of the property. Analysis The proposed property acquisition is consistent with established City plans as described below: 2 The project is consistent with the City of Janesville Comprehensive Plan, which calls for the revitalization of neighborhoods that have experienced decline. The structure is not historically or architecturally significant and based on its poor physical condition does not represent a critical use in the Fourth Ward Neighborhood. 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 neighborhood development. The project is consistent with The Look West and Old Fourth Ward Neighborhood Revitalization Plan, which has been guiding redevelopment efforts in the central city neighborhoods. The City of Janesville has purchased six additional properties along Linn Street or within one block of Linn Street as part of their Neighborhood Redevelopment efforts (903 McKinley, 907 McKinley, 203 Linn, 215 Linn, 808 Holmes, and 316 Linn). In November of 2010, the City Council approved Council Policy Statement #85. This policy outlines the acquisition process for properties to be acquired under note issue funding. This policy was prepared to formalize criteria for selection to facilitate the purchase of these properties in a manner that is efficient and maximizes the City’s ability to negotiate the purchase of the properties. The selection criteria were considered and this proposal is being brought forth in accordance with the Council Policy Statement. 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 The Plan Commission reviewed this acquisition on January 17, 2011, and unanimously agreed to forward this item to the City Council with a favorable recommendation noting the Plan Commission has not reviewed the financial aspects of this transaction. Attachments: Property Data Information Site Map Property Photos cc: Jennifer Petruzzello, Neighborhood Services Director Eric Levitt, City Manager Jay Winzenz, Assistant City Manager and Director of Administration 3 RESOLUTION NO. 2011-768 RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 513 LINN 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 th 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 th 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 513 Linn Street in the amount of Twenty Thousand Dollars ($20,000.00); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on th January 17, 2011 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 find 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 513 Linn Street in the amount of Twenty Thousand dollars ($20,000.00) 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 Development Specialist É ÎßÝ×ÒÛ ÍÌ ëïí É×ÔÍÑÒ ßÊÛ q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ ïñêñîðïï Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Ôóïì ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÓßÐ ï ßÝÏË×Í×Ì×ÑÒ ÑÚ ëïí Ô×ÒÒ ÍÌ ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»óîðïïÄÔóïìÁß½¯«··¬·±²óëïíóÔ·²² 513 Linn Street