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#07 Authorize acquisition and demolition of 14 South Grant (File Res. #2011-803) NEIGHBORHOOD SERVICES MEMORANDUM May 2, 2011 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and Demolition of Property at 14 S. Grant Street (File Resolution 2011- 803) 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. The property located at 14 S. Grant Street is a vacant single family home located along the Court Street Corridor. The property was foreclosed by Blackhawk Community Credit Union in December of 2010. 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 $13,000 subject to City Council approval. The property would then be demolished at an estimated cost of $5,000. Department Recommendation Neighborhood Services Staff is recommending that the City acquire the residential property located at 14 S. Grant 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 #2011-803 authorizing the purchase and demolition of real property located at 14 S. Grant Street for the purpose of blight elimination and neighborhood stabilization as consistent with the City of Janesville Comprehensive Plan. Background The property located at 14 S Grant Street is developed with a single-story single family residence built in 1910. The property is zoned B3, General Commercial and is located on a .33 acre lot. The 787 square foot, one-story single family 1 home has 2 bedrooms and 1 bath. The property does not lie within any historic district. City Staff has negotiated an offer to purchase the property for $13,000. The property has a current total assessed value of $50,200. The assessed value for the land alone is $18,100.The property was foreclosed upon by Blackhawk Community Credit Union in December, 2010. Neighborhood Services staff performed an interior inspection with the representative of the owner. The interior of the property has been gutted. All items have been removed from the home including the furnace, water heater, cabinets, counters and plumbing. Some new electrical has been run, but the work is not complete and has not been inspected. There is significant leaking into the basement through the block foundation. The roof and siding are in very poor repair. Neighborhood Services has responded to this location ten times over the past ten years regarding housing and nuisance issues at the property. Following demolition, the site would be restored as green space for the time being. This parcel was specifically noted in the Court Street Revitalization Corridor section of the Comprehensive plan as an area of Commercial Infill use. Revitalization of this area would help improve the image of this corridor, promote growth on the Westside and contribute to the enhancement of the gateway on the City’s West Side. 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. As of March 31, 2011 a balance of $376,000 is available. 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. Analysis The proposed property acquisition is consistent with established City plans as described below: The project is consistent with the City of Janesville Comprehensive Plan which establishes a Court Street Revitalization Corridor Plan. The structure is not historically or architecturally significant. Removal of this structure would provide an opportunity to enhance the appearance of this block and offer potential redevelopment opportunities consistent with the Court Street Revitalization Corridor Plan. The project is consistent with the Comprehensive Plan. 2 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 with some large scale housing complexes having as high as a 25% vacancy rate); although it is arguable that we are experiencing a shortage of quality affordable housing. Plan Commission Action Acquisition of 14 South Grant Street. Kelly Lee, Development Specialist, presented the written staff report. There was a motion by Commissioner Madere with a second by Commissioner Adams to find the proposed acquisition consistent with established City plans and further recommend that the City Council proceed with the land acquisition. The City Council should be advised that the Plan Commission has not reviewed the financial aspects of this transaction. The motion carried on a 5-0-0 vote . Attachments: Property Data Information Site Map Property Photos Property Checklist cc: Jennifer Petruzzello, Neighborhood Services Director Eric Levitt, City Manager Jay Winzenz, Assistant City Manager and Director of Administration 3 RESOLUTION NO. 2011-803 RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 14 S GRANT 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 14 South Grant Street in the amount of Thirteen Thousand Dollars ($13,000.00); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on May 2nd, 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 finds 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 14 South Grant 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 Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: ____________________________________ Assistant City Attorney Proposed by: Neighborhood Services Department Prepared by: Neighborhood Development Specialist ïì q Ô»¹»²¼ ïì Íò Ù®¿²¬ Í¬®»»¬ Ü¿¬»æ ìñîîñïï Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Öóïì ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÓßÐ ï ß½¯«··¬·±² ±º ïì Íò Ù®¿²¬ Í¬®»»¬ ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»óîðïïÄÖóïìÁïìóÍóÙ®¿²¬ 14 S Grant Street 14 S Grant Street 14 S Grant Street 14 S Grant Street 14 S Grant Street Property Condition Checklist for Acquistions Address:14 S Grant Street Building ExteriorRepair or ReplaceComments RoofAppears OK at this time Siding/PaintXBroken and Missing Pieces WindowsSome new windows PorchesXStructurally Unsound Stairs Guardrails/Handrails FoundationXBasement leaking Chimney MechanicalsRepair or ReplaceComments Heating SystemXFurnace/water heater removed Electrical SystemXSome rewiring-Not Complete Plumbing SystemsXRemoved Building InteriorRepair or ReplaceComments StairsXUnsafe Guardrails/HandrailsXMissing FlooringXMissing or Dammage Flooring CabinetsXMissing CountersXMissing Plumbing FixturesXMissing (New Shower Stall) Electrical FixturesXMany Missing