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#06 Authorize sale of Hugunin House located at 2739 Beloit Avenue (File Res. #2012-884) City Manager’s Office Memorandum February 27, 2012 TO: Janesville City Council FROM: Al Hulick, Management Analyst SUBJECT: Action on a proposed resolution authorizing the City Manager to sell the Hugunin House located at 2739 Beloit Avenue. (File Res. No. 2012-884) Summary The Administration has reached an agreement to sell the property located at 2739 Beloit Avenue known as the Hugunin House on land contract to Mr. Randy Maizonet for $70,000. The City has owned and maintained the property since 2004. File Resolution 2012-884 authorizes the City Manager to enter into a land contract for the sale of 2739 Beloit Avenue. Staff Recommendation The City has owned the subject site since 2004. The home has remained vacant since 2006 and the City has had to perform considerable maintenance on the property. Due to the limited use and interest in the property, and the increasing maintenance cost associated with retaining ownership of the home, staff recommends the City Council approve File Resolution 2012-884 authorizing the City Manager to enter into a land contract for the sale of 2739 Beloit Avenue for $70,000. City Manager Recommendation The City Manager recommends approval. Suggested Motion The City Council moves to approve File Resolution 2012-884 authorizing the City Manager to enter into a land contract for the sale of 2739 Beloit Avenue. Background When the City created TIF District No. 16, the City of Janesville purchased the property located at 2739 Beloit Avenue known as the Hugunin Property. At that time Mrs. Hugunin still resided at the farmstead property which consisted of undeveloped land including the subject residence and accessory structures. On February 23, 2004, the City of Janesville made the final payment to Mrs. Eva Hugunin for the property. The purchase agreement specified that Mrs. Hugunin could remain on the property for the rest of her life or until such time as she chose to leave. In July 2006, Mrs. Hugunin vacated the property, electing to live with family instead. Since it was vacated in 2006, the City has continued to maintain the property. The property has been used for single-family purposes since its original construction in 1868. The property remains unoccupied at this time. As part of the acquisition process, the City was required to register the property on the National Historic Registry. Therefore, any subsequent use of the property will be subject to the restrictions of a historic conservation easement. This will require any exterior alterations to be reviewed by the Historic Commission for review and approval. At the March 24, 2008 meeting, the City Council approved Resolution No. 2008- 485 which declared the property as surplus property and available for sale. At that time, the Administration had no specific plans for reuse or sale of the property but needed to declare the property as surplus before making it available for reuse and/or sale. Analysis As noted, the Hugunin House has been under City ownership since 2004. Ms. Hugunin moved out of the home in 2006, and the City has had the property listed for sale since that time. The property was originally listed for $159,000. That price was lowered to $110,000 in 2010 and again lowered to $90,000 in 2011 due to continued lack of interest and rising maintenance costs on the property. Although the property has had several showings during that time, no formal offers have ever come forward until the subject offer put forth by Mr. Maizonet. Mr. Maizonet’s has offered to purchase the home on land contract for $70,000. The land contract will be for five years at five-percent interest. It is buyer’s intent to rehab the home as a single family residential unit. The City Council amended the Zone District at their January 9, 2012 meeting to allow for the continued use of this property as a single family home. The Hugunin property is on the National Register of Historic Places. This designation requires that any use and/or restorations made to the property must not adversely affect the building’s historic integrity. Therefore, the City will also need to record a Historic Conservation Easement on the property. The recording of this easement will be brought forward with a CSM that legally defines the subject site has been brought forward on this agenda for your review and approval. cc: Eric Levitt Jacob Winzenz RESOLUTION NO. 2012-884 A resolution authorizing the City Manager to proceed with the sale of surplus property located at 2739 Beloit Avenue WHEREAS , the City of Janesville, a Wisconsin Municipal Corporation (hereinafter the “CITY”), is the owner of record title to the property known as the Hugunin Home located at 2739 Beloit Avenue, City of Janesville, County of Rock, State of Wisconsin, (hereinafter the “PROPERTY”); WHEREAS , the property consists of approximately 2 acres of land located at 2739 Beloit Avenue and was purchased in 2004 as part of the creation of Tax Incremental Finance District 16; and WHEREAS , the property was formerly owned by the Ms. Eva Hugunin who vacated the property in 2006 and the property has remained vacant since that time; and WHEREAS , the City of Janesville has negotiated an agreement to sell the property on land contract to Mr. Randy Maizonet for Seventy Thousand and 00/100 Dollars ($70,000.00); and WHEREAS , the City shall record a historic easement on the property being transferred requiring any exterior alterations to be reviewed by the Historic Commission for review and approval; and WHEREAS , the Common Council of the City of Janesville declared this property to be surplus property on March 24, 2008 and thus no longer needed for City purposes and the proposed transaction is to the benefit and best interest of the citizens and the City of Janesville. NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville 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: Tim Wellnitz, Assistant City Attorney Proposed by: City Manager’s Office Prepared by: City Manager’s Office Historic Conservation Easement Document No. Document Title KNOW ALL PERSONS BY THESE PRESENTS: WHEREAS, the City of Janesville, a Wisconsin Municipal Corporation (hereinafter the “CITY”), is the owner of record title to the property known as the Hugunin Home located at 2739 Beloit Avenue, City of Janesville, County of Rock, State of Wisconsin, which is referred to as Lot 2 on the attached survey; WHEREAS, the PROPERTY is listed on the National Register of Historic Places; and Recording Area WHEREAS, the CITY wishes to protect and preserve the historic character of Name and Return Address the PROPERTY in accordance with Wisconsin Statutes Section 66.1111 Jean Ann Wulf, City Clerk-Treasurer through the granting of a Conservation Easement (hereinafter the City of Janesville "“EASEMENT”), in accordance with Wisconsin Statutes Section 700.40; P.O. Box 5005 Janesville, WI 53547-5005 NOW, THEREFORE, in consideration of the aforesaid, the undersigned, the CITY of JANESVILLE, as Owner of the above-described PROPERTY, does hereby declare that said PROPERTY shall be subject to, and shall be conveyed Parcel Identification Number (PIN) subject to, the provisions of the EASEMENT as hereafter described, and which shall be real and binding on the heirs, successors, assignees of the This homestead property (is) (is not) CITY, and on any subsequent purchasers, and shall be considered as running with the land in perpetuity: 1. The CITY shall retain for itself an EASEMENT, which gives the CITY a non-possessory interest in the PROPERTY to preserve the historical and architectural aspects of the PROPERTY. 2. The OWNER agrees to assume the cost of continued maintenance and repair of the PROPERTY in accordance with the recommended approaches in the Secretary of the Interior’s standards for rehabilitation and associated guidelines, or substantially similar standards of the CITY, so as to preserve the historical and architectural integrity of the features, materials, appearance, workmanship, and environment in order to protect and enhance those qualities that made the property eligible for listing in the National Register of Historic Places. 3. To preserve the historical and architectural aspects of the PROPERTY, the PROPERTY shall be subject to the provisions of the City of Janesville Historic Overlay Zoning District, Ordinance 18.36.070.B.2, as from time to time amended or renumbered, and which District regulations require the Owner of the PROPERTY to obtain a Certificate of Appropriateness or Statement of Waiver from the Janesville Historic Commission for any action which would affect the exterior of the PROPERTY. 4. If the Janesville Historic Commission and, upon appeal, the Plan Commission denies the Owner of the PROPERTY a Certificate of Appropriateness or Statement of Waiver applicable to the exterior in accordance with the provisions of the City of Janesville Zoning Code Section 18.36.070.2.i., as from time to time amended or renumbered, and/or this Easement, the Owner of the PROPERTY may appeal the denial of a Certificate of Appropriateness or Statement of Waiver by the Janesville Historic Commission and the Plan Commission, to the Common Council of the City of Janesville. The decision of the Common Council shall be final and binding upon the Owner of the PROPERTY. 5. The CITY, and its heirs, successors, assignees, conveyees and transferees shall insert the provisions of this EASEMENT contained herein, either verbatim or by express reference, in any deed or legal instrument by which the current Owner of the PROPERTY divests itself of either the fee simple title or any lesser estate in the PROPERTY. 6. The restrictions, provisions and obligations set forth in this Easement concerning and affecting the exterior and interior of the PROPERTY apply to the CITY and each and every of the CITY’s heirs, successors, assignees, conveyees and transferees. IN WITNESS WHEREOF, the Officers of the City of Janesville, Wisconsin, Owner of said PROPERTY have hereunto set their hands and seals this ____ day of ______, 2012. * * * * AUTHENTICATION ACKNOWLEDGEMENT STATE OF WISCONSIN ) Signature(s) ) ss. County ) authenticated this day of , Personally came before me this day of , , the above named * TITLE: MEMBER STATE BAR OF WISCONSIN (If not, authorized by § 706.06, Wis. Stats.) to me known to be the person(s) who executed the foregoing instrument and acknowledge the same. THIS INSTRUMENT WAS DRAFTED BY * Notary Public, State of Wisconsin (Signatures may be authenticated or acknowledged. Both are not My Commission is permanent (if not, state expiration date: necessary.) ) * Names of persons signing in any capacity should be typed or printed below their signatures. J:\Attorney\Word\Shared\Hugunin Historical Conservation Easement.doc