#1 Authorize to convey property at 176 Lincoln Street to The Wisconsin Partnership for Housing Development Inc (File Res. #2012-909)
NEIGHBORHOOD SERVICES MEMORANDUM
May 31, 2012
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Convey Property Located at 176 Lincoln Street to the Wisconsin
Partnership for Housing Development, Inc. (File Resolution # 2012-909)
Summary
In October of 2010, the City Council approved the acquisition and demolition of a
vacant and blighted two unit structure located at 176 Lincoln Street. The property
was demolished, and the City of Janesville has been maintaining the 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). Under this Agreement, the Partnership is to complete the
construction of one new home.
The Partnership has completed preliminary design plans for the construction of a new
single family home under the NSP III Program. The property located at 176 Lincoln
Street is a desirable residential redevelopment site, and staff believes that it is in the
best interest to convey the vacant lot to the Partnership for construction of a new
single family home at this time.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve File
Resolution #2012-909, authorizing the City Manager to convey the property located
at 176 Lincoln Street to The Wisconsin Partnership for Housing Development, Inc.
City Manager Recommendation
The City Manager concurs with the Neighborhood Services Department
recommendation.
Suggested Motion
I move to approve File Resolution #2012-909 authorizing the City Manager to convey
the property located at 176 Lincoln Street to The Wisconsin Partnership for Housing
Development, Inc.
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Background
In October of 2010, the City Council approved the acquisition of 176 Lincoln 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 vacant, foreclosed two unit rental property that was in very poor
condition. The structure was demolished in early 2011 and the City of Janesville has
been maintaining this parcel as a vacant lot. The vacant lot is a corner lot with 66’
frontage by 125’ depth, which is standard for the area.
At the time of Council approval, the intended plan for the site was to offer the site to a
not for profit organization for the construction of a new single family home or to sell
the lot to adjoining property owners. Any new construction was to be of a design that
is compatible with other homes in the neighborhood.
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.
Under the Agreement, the Partnership will be responsible for the rehabilitation of five
single family homes and the construction of one new home. All activities assisted
must benefit low to moderate income households, which include individuals at 80% of
the adjusted median income or below (i.e. $52,300 for a family of four). At least 30%
of the total grant funding must benefit households with incomes ≤50% of median
income (i.e. $32,700 for a family of four). 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 completed the rehabilitation of one property, has three
properties under construction, and has just purchased a fifth property for
rehabilitation purposes though the NSP III grant.
The Partnership has completed preliminary design of a two-story, 1,880 square foot
single family home. The home is proposed to be constructed in the Prairie style,
which is consistent with the character of the neighborhood. The home will be a 3
bedroom home with 2 ½ baths and an attached 2-car garage.
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This design was reviewed by the Historic Commission on May 14, 2012 and was
approved noting no adverse impact. Recommendations from the Historic
Commission that will be included in the final design include using consistent and
double hung windows and using flat frames on the columns and under the windows.
Analysis
The property located at 176 Lincoln Street is suitable for residential
redevelopment. When acquired in 2010, the property was intended to be
redeveloped by a not for profit for the construction of a single family home or
sold to adjoining property owners. It is currently being maintained as a vacant
City Lot, and conveying the property will eliminate any ongoing maintenance
costs.
Redevelopment of the lot will allow for the construction of a new home, which
will add to the overall property tax base. The adjoining properties are rental
properties equivalent in size or larger and appear to have adequate space for
parking making sale to adjoining property owners less likely. If the lot were
sold to adjoining property owners to expand their lots, the resulting lot value
would have a much lower impact on the property tax base.
The City has entered into an agreement with the Wisconsin Partnership for
Housing Development, Inc. under the NSP III Program, which includes the
construction of one new home. Funding for the construction would be provided
through the NSP III Program Agreement and sale proceeds would be returned
to the City for additional projects under the NSP III Program. The Partnership
has the capacity to undertake this project and the conveyance of the property
will facilitate them moving forward with construction of a home in the Historic
Fourth Ward neighborhood.
The redevelopment of the property and construction of a single family home is
consistent with the City of Janesville Look West and Old Forth Ward
Neighborhood Revitalization Plans and the City of Janesville Comprehensive
Plan, which call for the revitalization of neighborhoods that have experienced
decline and for the City to acquire vacant, dilapidated, and tax-delinquent
properties for rehabilitation and resale to increase owner-occupancy and
promote continued investment in existing neighborhoods.
The Prairie design of the home is compatible with the Old Historic Fourth Ward
Neighborhood homes, and will provide a positive example of historically
appropriate infill development.
Attachments: Location Map
Preliminary Design
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RESOLUTION NO. 2012-909
A resolution authorizing the City Manager to proceed with the conveyance of property located at
176 Lincoln Street to The Wisconsin Partnership for Housing Development.
WHEREAS,
the City of Janesville owns the following described parcel:
Lot 8 of Doe’s Addition, in the City of Janesville, Rock County, Wisconsin. Also, all that part of Lot 6 of
Doe’s Addition aforesaid, which lies South of a line beginning at a point on the West line of said Lot 6, 4
rods North of the Southwest corner of said Lot 8 as measured on the West line of said Lots 8 and 6,
thence Easterly, parallel with the South line of said Lot 8 to the East line of said Lot 6.
For informational purposes: 176 Lincoln Street, Janesville, WI 53548; Tax Key No. 241-0136400607.
WHEREAS
, The City of Janesville acquired the property located at 176 Lincoln Street in October 2010,
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 prepared plans for the construction
of a new single family home under the Neighborhood Stabilization Program III grant; and
WHEREAS,
The property located at 176 Lincoln Street is a desirable residential redevelopment site: and,
WHEREAS,
It is in the best interest of the City of Janesville to convey 176 Lincoln Street to The
Wisconsin Partnership for Housing Development for construction of a single-family home: and,
WHEREAS,
the newly constructed home 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
Farrell
Eric J. Levitt, City Manager
Kealy
Liebert
ATTEST:
Severson
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: Neighborhood Services
Prepared by: Neighborhood Services Director
176
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