#06 Authorize acquisition and demolition of 527 North Pearl (File Res. #2011-804)
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 527 N. Pearl Street (File Resolution 2011-
804)
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 527 N. Pearl Street is a vacant single family home
located in Census Tract 4 within the Look West Neighborhood. The property is
an owner occupied dwelling that was listed for sale on January 17, 2011, at an
asking price of $41,000. 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 $16,000,
following a property appraisal and 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 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.
Department Recommendation
Neighborhood Services Staff is recommending that the City acquire the
residential property located at 527 N. Pearl Street under the Neighborhood and
Downtown Blight Elimination Program for the purpose of blight elimination and
neighborhood stabilization.
City Manager Recommendation
The City Manager concurs with the recommendation.
Suggested Motion
I move to approve File Resolution #2011-804 authorizing the purchase and
demolition of real property located at 527 N. Pearl Street for the purpose of blight
elimination and neighborhood stabilization as consistent with the City of
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Janesville Comprehensive Plan and Look West and Old Fourth Ward
Neighborhood Revitalization Plan.
Background
The property located at 527 N. Pearl is developed with a two-story single family
residence built in 1900. The property is zoned R2, Limited General Residence
District and is located on a .2 acre lot. The 1,176 square foot, two-story single
family home has 3 bedrooms and 2 baths. Although the property is listed as a
contributing structure within the Look West District, the property does not
individually represent a structure of historic significance to be retained.
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The property is listed in fair condition on the 4 Ward and Look West Housing
Conditions Report; however, this report is based on an exterior inspection from
the public right of way done in early 2009. Neighborhood Services staff
performed an interior inspection with a real estate agent and the property
condition has deteriorated significantly.
Both the exterior and the interior of the dwelling are in poor condition. The
exterior stucco is falling off of the building. The front and back porches are in
poor condition, there are parts of the soffit that are open. There are major
foundation cracks on the southwest corner of the foundation in addition to a
significant amount of open air cracks in the crawlspace. The second floor
bathroom is not functioning and had not been for several years. The electrical
system is unsafe. (See Attached Photos).
The cost to rehabilitate this structure to comply with current building code, and
minimum housing standards, including lead based paint abatement would
significantly exceed the current value of the home
City Staff has negotiated an offer to purchase the property for $16,000. The
property has a current assessed value of $65,800. The property is an owner
occupied dwelling that was listed for sale on January 17, 2011 in the amount of
$41,000
Because staffs original Offer to Purchase was over $25,000. The offer was
written contingent upon an appraisal of the property. The appraisal came in at
$16,000, and staff renegotiated the offer to purchase at $16,000. The appraisal
found that “except for most of the roof covering, the subject property’s exterior is
in poor condition; the three bedrooms are in average condition, otherwise, the
interior is in fair-poor condition. Some areas of the interior are not finished; the
staircase to the basement is steep, narrow and not safe”.
Following demolition, 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
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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. 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
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 Look West
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. It should be noted that the adjoining properties are in very good
physical condition (See Photos).
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.
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 527 N Pearl Street.
Kelly Lee, Development Specialist, presented the written staff report.
Commissioner Voskuil stated that she was surprised that based on an exterior
condition back in 2009 that the City’s original offer to purchase was over
$25,000. Lee explained that is the reason that the offer was written with an
appraisal contingency. It allowed for an accepted offer to move forward, but
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assure that the offer would only be for what the property was worth. Lee added
that the City is not responsible for the relocation costs for this family.
Commissioner Marklein referred to the staff report regarding the resale of this
property and asked if adjoining property owners could divide up the vacant lot for
open space or for the addition of a detached structure. Lee confirmed that was a
potential use for the property.
There was a motion by Commissioner Adams with a second by Commissioner
Marklein 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
Appraisal Addendum
Property Checklist
cc: Jennifer Petruzzello, Neighborhood Services Director
Eric Levitt, City Manager
Jay Winzenz, Assistant City Manager and Director of Administration
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RESOLUTION NO. 2011-804
RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL
PROPERTY LOCATED AT 527 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 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
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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
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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
527 North Pearl Street in the amount of Sixteen Thousand Dollars ($16,000.00); 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 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 527 North Pearl Street in the amount of Sixteen
Thousand dollars ($16,000.00) 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:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Development Specialist
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527 N Pearl Street
527 N Pearl Street
527 N Pearl Street
527 N Pearl Street
527 N Pearl Street
Neighboring Properties
Property Condition Checklist for Acquistions
Address:527 N Pearl
Building ExteriorRepair or ReplaceComments
RoofAppears OK at this time
Siding/PaintXStucco falling off structure
WindowsX
PorchesXStructurally Unsound
Stairs
Guardrails/Handrails
FoundationXVisable Cracks
Chimney
MechanicalsRepair or ReplaceComments
Heating SystemNewer Furnance/Water Heater
Electrical SystemXunsafe conditions
Plumbing SystemsXUpper Bath doesn't work
Building InteriorRepair or ReplaceComments
StairsXUnsafe
Guardrails/HandrailsX
FlooringX
CabinetsX
Counters
Plumbing FixturesX
Electrical FixturesXunsafe conditions
** See appraisal adendum for additional information