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#2 Authorize demolition of 159 Cherry Street (File Res. #2011-845) NEIGHBORHOOD SERVICES MEMORANDUM October 14, 2011 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Action on a Proposed Resolution Authorizing Demolition of 159 Cherry Street (File Res. 2011-845) Summary As part of the Neighborhood Stabilization Program Grant (NSP), the Neighborhood Services Department of the City of Janesville acquired 159 Cherry Street in accordance with file resolution 2010-668 approved on February 10, 2010. The original intent of this acquisition was to rehabilitate the home; however, since the acquisition the structural masonry has deteriorated significantly and staff believes that it is a more cost effective use of the program funds to demolish this structure at this time. Department Recommendation The Neighborhood Services Department recommends that the City Council support a motion to approve Resolution 2011-845 authorizing the demolition of 159 Cherry Street as part of the Neighborhood Stabilization Grant Program (NSP). City Manager Recommendation The City Manager concurs with the Neighborhood Services recommendation. Suggested Motion I move to approve file resolution 2011-845 authorizing the demolition of 159 Cherry Street as part of the Neighborhood Stabilization Grant Program. Background In January 2009, the City Council authorized staff to apply for a Neighborhood Stabilization grant Program through the State of Wisconsin Department of Commerce. The City of Janesville has received an award of $1,189,865 This program allows municipalities and qualified non-profit organizations to acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or demolition. To date, the City has completed rehabilitation of three homes, demolition of five homes, is in the process of the rehabilitation of three additional projects, and has partnered with Community Action for the rehabilitation of one residential property. 1 On February 10, 2010 the City Council authorized Neighborhood Services to acquire the property at 159 Cherry Street through the Neighborhood Stabilization Program. Neighborhood Services closed on the property on February 17, 2010, with a purchase price of $47,500. At the time of the acquisition, the two story brick home built in 1870 appeared to be in fairly good condition; however since that time, we have discovered a serious concern with the brick (see attached photos). Just prior to our acquisition, the brick had been freshly painted. Unfortunately, that paint sealed moisture into the brick resulting in significant deterioration of the structural brick. The brick is thought to be either Watertown or Common Brick, both which have a lifespan of approximately 50 years. The Neighborhood Services department has hired a general contractor to rehabilitate this property in addition to three others. The contractor has been unable to identify any mason who is willing to do the work required to repair the structure or even provide an estimate. Several masons have been to the property but believe the brick to be beyond repair. In addition, City of Janesville Building Inspectors have evaluated the site and believe that thestructural integrity of the brick is too deteriorated to do proper structural repair or shoring. Staff has contacted a local expert in brick and he and his mason provided a verbal opinion that the cost to rebuild the structure would significantly exceed the value of the structure. Neighborhood Services has approached the State of Wisconsin NSP Grant Administrators and they will allow us to amend our contract to move this project from a rehabilitation project to a demolition project. The demolition meets the requirements and intent of the Neighborhood Stabilization Program. The demolition would be funded through the Neighborhood Stabilization Program. Our contractor will be able to salvage some of the items from this property for use in another project that he is working on through this program. Any other salvage would be offered to Habitat for Humanity and to the demolition contractor. All Neighborhood Services demolition projects follow all rules as outlined by the Wisconsin Department of Natural Resources for demolition of residential structures. As with all of the demolitions, the future use of the lot would be determined at a later date and with approval from the City Council. This property is surrounded by owner occupied dwellings who may want to expand their lots. Staff was approached while taking photos of the property a few weeks ago by a neighbor who would be interested in a portion of the lot if it became available. 2 Analysis A. The property located at 159 Cherry Street has significantly deteriorated since the acquisition in February of 2010. B. Neighborhood Services has consulted with masons, inspectors, and industry experts that believe that the masonry is not able to be salvaged at this point. Reconstruction of the brick would significantly exceed the value of the property post-reconstruction. C. Demolition meets the goals and intent of the Neighborhood Stabilization program of removing blighted structures from the neighborhood. D. The demolition will be funded through the Neighborhood Stabilization Program. E. The project is consistent with the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization Plan as well as the City of Janesville Comprehensive Plan. cc: Eric Levitt, City Manager Jay Winzenz, Dir. of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 3 RESOLUTION NO. 2011-845 RESOLUTION AUTHORIZING THE DEMOLITION OF REAL PROPERTY LOCATED AT 159 CHERRY 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 of Janesville has been awarded $1,003,743 through the Neighborhood Stabilization Program (NSP) grant; and WHEREAS , the Neighborhood Stabilization Program (NSP) grant must be used for acquisition, rehabilitation, or demolition of foreclosed properties; and WHEREAS , the Common Council of the City of Janesville authorized the acquisition and rehabilitation of 159 Cherry Street at the City Council meeting of February 10; and, WHEREAS , the City of Janesville acquired the property located at 159 Cherry Street on February 17, 2010 through the Neighborhood Stabilization Program grant; and, WHEREAS, after further evaluation the condition of the brick structure with Masonry experts, Neighborhood Services has found the brick to be in a considerably more deteriorated state; and, WHEREAS , Neighborhood Services had received approval from the Division of Housing and Community Development at the State of Wisconsin to shift this project from a Rehabilitation Project to a Demolition project; and, WHEREAS , Neighborhood Services believes demolishing this house to be a better use of funds; and, WHEREAS , the Council find this demolition 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 demolition is the Neighborhood Stabilization Program (NSP) grant: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville, that it hereby approves and authorizes; the City Manager and/or his designee(s) to demolish 159 Cherry Street 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: Tim Wellnitz, Assistant City Attorney Proposed by: Neighborhood Services Department Prepared by: Neighborhood Development Specialist