#4 Authorize to convey 404 Johnson Street to Wisconsin Partnership for Housing Development Inc (File Res. #2012-905)
NEIGHBORHOOD SERVICES MEMORANDUM
April 11, 2012
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Convey the Property Located at 404 Johnson Street to The
Wisconsin Partnership for Housing Development, Inc. (File
Resolution # 2012-905)
Summary
In November of 2009, the City Council approved the acquisition and demolition of
a blighted two unit structure located at 404 Johnson Street. The property has
been demolished, and the City of Janesville has been maintaining the property
as a vacant lot since that time.
In 2011, the City of Janesville entered into a Developers Agreement with The
Wisconsin Partnership for Housing Development (the Partnership) for housing
rehabilitation and redevelopment under the Neighborhood Stabilization Program
III grant (NSP III). The Partnership has substantially completed the rehabilitation
of the adjoining home located at 410 Johnson.
Staff believes that it is in the best interest to convey the vacant lot located at 404
Johnson to the Partnership to be combined with 410 Johnson. The lot is of an
odd shape and is not desirable for redevelopment, and the additional yard will
improve the NSP III project.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve
File Resolution #2012-905, authorizing the City Manager to convey the property
located at 404 Johnson Street to The Wisconsin Partnership for Housing
Development, Inc.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move to approve File Resolution #2012-905 authorizing the City Manager to
convey the property located at 404 Johnson Street to The Wisconsin Partnership
for Housing Development, Inc.
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Background
In November 2009, the City Council approved the acquisition of 404 Johnson
Street through the General Fund Blight Elimination program, a program designed
to support redevelopment efforts by acquiring vacant and/or blighted properties in
the central city and downtown neighborhoods. At the time of the acquisition the
parcel was improved with a two unit rental property that was in very poor
condition. The structure has been demolished and the City of Janesville has
been maintaining this parcel as a vacant lot.
At the time of Council approval, staff stated that upon determination of a future
use of the property, staff would return to council for approval. At this time,
Neighborhood Services is requesting that Council approve the conveyance of the
property to The Wisconsin Partnership for Housing Development.
In June of 2011, the City Council authorized staff to enter into an agreement with
The Wisconsin Partnership for Housing Development, Inc. for utilization of
Neighborhood Stabilization Program III funds. This program allows municipalities
and qualified non-profit organizations to acquire foreclosed properties for the
purpose of rehabilitation, redevelopment or demolition.
The City of Janesville received $600,000 in housing funds and $37,250 in
administrative funds for this program. The City of Janesville entered into a
developer’s agreement per the NSP program with The Wisconsin Partnership for
Housing Development. The Partnership is a private nonprofit corporation
working to expand affordable housing opportunity through innovation in housing
development, consulting, finance and advocacy. Since founding in 1985, they
have formed numerous partnerships with the public, nonprofit and private sectors
in efforts to build and sustain strong neighborhoods and communities.
The Partnership will be responsible for the rehabilitation of five single family
homes, the construction of one new home, and the provision of down payment
and closing cost assistance. All activities assisted must benefit low to moderate
income households, which include individuals at 80% of the adjusted median
income or below. At least 30% of the total grant funding must benefit households
with incomes ≤50% of median income. Fifty percent of all grant funds must be
expended by 12/31/2012 and 100% of grant funds must be expended by
12/31/2013.
The Partnership currently has three properties under construction though the
NSP III grant. One of the properties that the Partnership has substantially
completed is located at 410 Johnson. The parcel adjoins 404 Johnson Street
(see map).
Because of the odd shape of the lot located at 404 Johnson and the opportunity
to improve a NSP III project by providing a larger yard for the property, staff feels
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that it is in the best interest to convey the lot located at 404 Johnson to The
Wisconsin Partnership for Housing Development, Inc. The two parcels will be
combined and sold to an income eligible household per the NSP III regulations.
Analysis
The property located at 404 Johnson Street is currently being maintained
as a vacant City Lot. Conveying the property will eliminate any ongoing
maintenance costs.
The Wisconsin Partnership for Housing Development is nearing
completion of a complete rehabilitation of the home located at the
adjoining parcel located at 410 Johnson Street
The vacant lot at 404 Johnson Street is of an odd configuration and is not
a desirable building site.
The combination of the parcels at 404 and 410 Johnson will improve a
NSP III project.
cc: Eric J. Levitt, City Manager
Jay Winzenz, Director of Administration / Assistant City Manager
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RESOLUTION NO. 2012-905
A resolution authorizing the City Manager to proceed with the conveyance of property located at 404
Johnson Street to The Wisconsin Partnership for Housing Development.
WHEREAS,
the City of Janesville owns the following described parcel:
ROCKPORT ADD. LOT 1-2 W.OF HIGH ST. BLK.2 JC6006565
WHEREAS
, The City of Janesville acquired the property located at 404 Johnson in November 2009, through
the General Fund Blight Elimination Program; and
WHEREAS,
The City of Janesville has demolished the two family structure that was built on the site; and
WHEREAS,
The City of Janesville has entered into an agreement with The Wisconsin Partnership for
Housing Development, Inc. for development under the Neighborhood Stabilization Program III grant; and
WHEREAS,
The Wisconsin Partnership for Housing Development has acquired and rehabilitated the
adjoining property at 410 Johnson under the Neighborhood Stabilization Program III grant ; and
WHEREAS,
The property located at 404 Johnson is of an odd shape and not conducive to redevelopment:
and,
WHEREAS,
It is in the best interest of the City of Janesville to convey 404 Johnson to The Wisconsin
Partnership for Housing Development for combination with 410 Johnson: and,
WHEREAS,
410 Johnson and 404 Johnson will be sold to an income eligible party under the Neighborhood
Stabilization III guidelines: 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
conveyance 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
Eric J. Levitt, City Manager
Farrell
Kealy
ATTEST:
Liebert
Severson
Jean Ann Wulf, City Clerk-Treasurer
Steeber
Voskuil
APPROVED AS TO FORM:
City Attorney, Wald Klimczyk
Proposed by: Neighborhood Services
Prepared by: Neighborhood Development Specialist