#2 Authorize sale of 212 Madison Street thru Neighborhood Stabilization Program (File Res. #2012-921)
NEIGHBORHOOD SERVICES MEMORANDUM
June 8, 2012
TO: City Council
FROM: Kelly Lee, Neighborhood Development Specialist
SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to
Sell the Property at 212 Madison Street through the Neighborhood
Stabilization Program (File Res. 2012-921)
Summary
The Neighborhood Services Department has completed the rehabilitation of the
property located at 212 Madison Street through the Neighborhood Stabilization
Program. An interested party has submitted a valid offer to purchase of $73,000
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 2012-921 authorizing the sale of the
property located at 212 Madison Street at a sales price of $73,000.00.
City Manager Recommendation
The City Manager recommends approval. The goal of the NSP program would
be met through this sale.
Suggested Motion
I move to approve file resolution 2012-921 authorizing the sale of 212 Madison
Street at a sales price of $73,000.00.
Background
In January 2009, the City Council authorized staff to apply for a Neighborhood
Stabilization Program (NSP) grant through the State of Wisconsin Department of
Commerce. The City of Janesville received approximately $1.2 million (this
includes funding we received from Rock County’s share and a portion that Beloit
was unable to allocate by the deadline). 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.
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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
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 212 Madison was acquired in October of 2009 for
$38,000 for the purpose of rehabilitation and resale under the Neighborhood
Stabilization Program. The buyer has provided the City of Janesville a copy of
her appraisal that lists the value of the home at $75,000.
The total cost of the rehabilitation of the property was approximately $120,000
which included lead abatement, energy improvements, roof repairs, a new ½
bathroom, all new flooring, and bringing the plumbing, electrical and heating
systems up to code.
This project employed a general contractor and 14 sub-contractors for the
project. The Neighborhood Stabilization Program required that all parties
employed on the project be paid Davis Bacon fair wage rates. This federal
requirement can inflate the cost of construction projects.
The buyer is within the income guidelines as required by the Neighborhood
Stabilization Program. Neighborhood Services is providing the buyer with $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 are considered program income and are 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. 2012-921
A resolution authorizing the City Manager to proceed with the sale of property located at 212
Madison Street.
WHEREAS,
the City of Janesville owns the following described parcel:
PT.LOT 10 MITCHELL'S ADD. BGN.AT A PT.ON E.L.MADISON ST.101.7' N.OF SW COR.LOT 10
MITCHELL'S ADD.;TH.CONT. N.ALG.SD.E.L.MADISON ST. 78.1';TH.E.AT RIGHT ANGLES 59.82' TO
A PT.ON THE SOUTHERLY EXT.OF LOT 13 SD. ADD.;TH.NELY 15.21' ON A LINE PARALLEL TO
N.L.LAUREL AVE.;TH. S.LY AT RIGHT ANGLES TO LAUREL AVE. 48'; TH. WLY TO POBDAF:Pt
NW1/4, Sec 36, T3N, R12E, 4th PM, City of Janesville, Rock Co, WI JC5603733
WHEREAS
, The City of Janesville acquired the property located at 212 Madison Street in October 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. Nathan Lippert
for $73,000.00.
WHEREAS,
The City of Janesville has obtained a copy of an appraisal of the property in the amount of
$75,000.00; and
WHEREAS,
The City of Janesville has verified that Mr. Lippert 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
Farrell
Eric J. Levitt, City Manager
Kealy
Liebert
ATTEST:
Severson
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