#07 Authorize sale of property at 407 Lincoln Street (File Res. #2012-887)Sale of 407 Lincoln - Res 2012-887
NEIGHBORHOOD SERVICES MEMORANDUM
February 15, 2012
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Sell Property located at 407 Lincoln through the Neighborhood
Stabilization Program (File Res. No. 2012-887)
Summary
The Neighborhood Services Department has completed the rehabilitation of the
property located at 407 Lincoln Street through the Neighborhood Stabilization
Program. An interested party has submitted a valid offer to purchase of $80,000
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 2012-887 authorizing the sale of the
property located at 407 Lincoln Street at a sales price of $80,000.00.
City Manager Recommendation
The City Manager concurs with the department recommendation.
Suggested Motion
I move to approve file resolution 2012-887 authorizing the sale of 407 Lincoln
Street at a sales price of $80,000.00.
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 received an award of $1,003,743.
This program allows municipalities and qualified non-profit organizations to
acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or
demolition.
The goals of the Neighborhood Stabilization Program (NSP) are to reduce blight,
provide affordable single family homes, and stabilize and improve the real estate
market in those neighborhoods being hit the hardest by the foreclosure crisis.
Sale of the NSP houses must be to owner occupied buyers who fall within the
income guidelines of the program. All buyers are required by the Neighborhood
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Stabilization Program to have had at least 8 hours of home buyer education from
a HUD approved housing councilor prior to the purchase of any NSP home.
The property located at 407 Lincoln Street was acquired on August 27, 2009 in
the amount of $51,000 for the purpose of rehabilitation and resale under the
Neighborhood Stabilization Program.
The total cost of the rehabilitation of the property was approximately $90,000
which included a roof repair, new windows, new storms and screen doors, a new
furnace, new garage roof and doors, a new water heater, new plumbing and
wiring and added insulation. The buyer has provided the City of Janesville a copy
of her appraisal that lists the value of the home at $90,000.
The buyer is within the income guidelines as required by the Neighborhood
Stabilization Program. Neighborhood Services is providing the buyer with $2000
in a buyer’s credit for closing cost and prepaids as well as $2500 in NSP-Funded
Down Payment and Closing Cost. The down payment and closing cost
assistance will be forgiven over a period of 5 years based on the owner
occupying the property as their primary residence.
The proceeds for the sale is considered program income and is returned to the
NSP program for future, similar projects.
Analysis
A. The property was purchased by the City of Janesville through the
Neighborhood Stabilization Program.
B. City Council set the asking price during a closed session on August 11,
2011 and the sales price falls within the guidance provided by the Council.
C. The intended buyer meets the requirements of the Neighborhood
Stabilization 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. 2012-887
A resolution authorizing the City Manager to proceed with the sale of property located at 407 Lincoln Street.
WHEREAS,
the City of Janesville owns the following described parcel:
ROCKPORT ADD. LOT 9 BLK.6 DAF: Pt SW1/4, Sec 36, T3N, R12E, 4th PM, City of Janesville, Rock Co, WI JC6006610
WHEREAS
, The City of Janesville acquired the property located at 407 Lincoln Street in August of 2009, through the
Neighborhood Stabilization Program Grant; and
WHEREAS,
The City of Janesville has rehabilitated the property consistent with the Neighborhood Stabilization Program
requirements; and
WHEREAS
, The City of Janesville has negotiated an agreement to sell the property to Mr. Jered Parks for $80,000.00 including
a $2000 buyers credit for a total purchase price of $78,000.00.
WHEREAS,
The City of Janesville has obtained a copy of an appraisal of the property in the amount of $90,000; and
WHEREAS,
The City of Janesville has verified that Mr. Parks is within the program criteria; and
WHEREAS,
The City of Janesville has provided $2500 in down payment assistance: and,
WHEREAS
, the Plan Commission has reviewed the Neighborhood Stabilization Program at their June 1, 2009 meeting and
found the purchase, rehabilitation and 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
Dongarra-Adams
Liebert
Eric J. Levitt, City Manager
McDonald
Rashkin
ATTEST:
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services
Prepared by: Neighborhood Development Specialist
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