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Sale of City-Owned Real Property at 2056 Washington_Santo_Hearing Copyrighted March 19, 2018 City of Dubuque Public Hearings # 4. ITEM TITLE: Sale of City-Owned Real Property at 2056 Washington Street SUMMARY: Proof of publication on notice of public hearing to consider approval to dispose of City-owned real property located at 2056 Washington Street to Jennette E. Santo and the City Manager recommending approval. RESOLUTION Approving the sale of real estate specifically Lot 2 of Heart Project Place in the City of Dubuque, lowa, according to the recorded Plat thereof - 2056 Washington Street. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type 2056 Washington Street Sale-NNM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Special Warranty Deed Supporting Documentation THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of City-Owned Property at 2056 Washington Street DATE: March 8, 2018 Housing and Community Development Department Director Alvin Nash recommends City Council approval of the sale of a home at 2056 Washington Street to Jennette E. Santos for $60,000. A $20,000, 0°k interest; 21-year term loan will be made available per the Washington Neighborhood Homebuyer Loan Program to the buyer to assist with down payment, closing costs, other related costs, or simply by bringing down the 1 S� mortgage. Ms. Santos has secured financing through a first mortgage with Dupaco Community Credit Union. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� ��� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alvin Nash, Housing & Community Development Department Director Dubuque THE CITY OF U� � All-America City 1 / Masterpiece on the Mississippi � zoo�•zoiz•zois•zoi� TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Sale of City-owned property at 2056 Washington Street DATE: March 6, 2018 Introduction The purpose of this memorandum is to request approval of the attached resolution authorizing sale of a home at 2056 Washington Street. Background In 2006, Jesseca L. Zaruba (the Owner) purchased the property located at 2056 Washington Street with the assistance of loans totaling fifty-two thousand three hundred thirty-three dollars ($52,333.00) from the City. These loans consisted of forgivable loans, deferred loans, and 0% interest loans. The City purchased the Assignment of Mortgage from Dubuque Bank and Trust in the amount of $21,803.00, in order to avoid foreclosure and keep control of the property. The current debt is approximately fifty- seven thousand dollars ($57,000.00), which includes $10,000 in rehab costs. Attempts were made to help the Owner get back on track financially and resume mortgage payments, but all efforts were unsuccessful. Fearing foreclosure, the Owner abandoned the property and left Dubuque approximately three (3) years ago. Additional efforts were made to work with the Owner following abandonment, but those efforts were also unsuccessful. To avoid the property falling into disrepair, to eliminate the presence of an abandoned property in the Washington Neighborhood, to avoid foreclosure for the Owner, and to ultimately return the property to a new owner/occupant, the Owner executed a Quit Claim Deed transferring the property to the City. The City rehabbed the property to re- sell to an income qualifying household. This plan is consistent with the Washington Neighborhood Strategic Plan adopted by the City Council in 2009 and the City's efforts to increase homeownership opportunities in the Washington Neighborhood. Discussion On March 5, 2018, the Council passed Resolution No. 54-18, declaring its intent to dispose of City-owned property at 2056 Washington Street. The Rehabilitation Program uses multiple funding sources to provide affordable housing opportunities throughout the City. The lowa Finance Authority Trust Fund (IFA) and Community Development Block Grant (CDBG) was used therefore requiring sale to an income-eligible household under 80°k median income. Jennette E. Santo has made an offer to purchase the property at 2056 Washington Street for $60,000. A $20,000, 0°k interest; 21-year term loan will be made available per the Washington Neighborhood Homebuyer Loan Program to the buyer to assist with down payment, closing costs, other related costs, or simply by bringing down the 1 S� mortgage. Ms. Santos has secured financing through a first mortgage with Dupaco Community Credit Union. The revenue from sale of this property will go back to the original funding source which is the IFA Trust Fund 2681021 . The attached resolution approves the sale of the property to Jennette E. Santos. Action Step I respectfully request City Council approve the attached resolution approving the sale of the home at 2056 Washington Street. KLN 2 RESOLUTION NO. 72-18 A RESOLUTION APPROVING THE SALE OF REAL ESTATE SPECIFICALLY LOT 2 of HEART PROJECT PLACE IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE RECORDED PLAT THEREOF — 2056 WASHINGTON STREET WHEREAS, the City of Dubuque, Iowa (City) is the owner of real property legally described as: Lot 2 of HEART Project Place in the City of Dubuque, Iowa, according to the recorded plat thereof; Locally known at 2056 Washington Street (the Property); and WHEREAS, on March 5, 2018, the City Council pursuant to notice published as required by law held a public hearing on its intent to dispose of the foregoing interest in the Property and overruled all objections thereto; and WHEREAS, qualifying homebuyer, Jennette E. Santos has signed an offer to purchase and has obtained financing from a local lender; and WHEREAS, the City Council finds that it is in the best interest of the City to approve the disposition of such interest in the Property to qualifying homebuyer, Jennette E. Santos. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the disposition of the City's interest in the following legally -described property: Lot 2 of HEART Project Place in the City of Dubuque, Iowa, according to the recorded plat thereof; at the cost of Sixty -Thousand Dollars ($60,000). Section 2. That the Mayor is hereby authorized and directed to provide a Special Warranty Deed to the buyer, conveying the City's interest to Jennette E. Santos for the herein -described real estate. Section 3. That the City Clerk be and he is hereby authorized and directed to cause said Special Warranty Deed to be recorded in the Office of the Dubuque County Recorder. Passed, approved and adopted thisl 9th day of March 2018. Attest: K -vin S. Firnstahl, City Clerk Roy D. Buol, Mayor Prepared by: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Return to: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL, AND CONVEY unto Jennette Effie Santos, a single person, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 2 of HEART Project Place, in the City of Dubuque, Iowa, according to the recorded plat thereof — 2056 Washington Street This Deed is exempt from transfer tax pursuant to Iowa Code Section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 72-18 of the City Council of the City of Dubuque adopted the 19th day of March, 2018 the terms and conditions thereof, if any, having been fulfilled. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Attest: By: Dated this 19th day of March, 2018 at Dubuque, Iowa. Kevin( irnstahl, CMC, City Clerk CITY OF DUBUQUE IOWA By: /frkv Ro. Buol, Mayor STATE OF IOWA SS COUNTY OF DUBUQUE On this 19th day of March, 2018, before me a Notary Public in and for said County, personally appeared Roy D. Buol and Kevin Firnstahl to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. •4L Notary Public in and for Dubuque County, Iowa rR HL. 11 mission Number 719986 My Commission Expires 12•I-3•�c� STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: March 9, 2018, and for which the charge is $47.22. 4)04.wtt_Pdtv Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this j H day of , 20 I S . Notary Pu 'c in and for Dubuque County, Iowa. JANET K. PAPE Commission Number 19969 My Comm. Exp. DEC 11, 2019 CITY OF DUBUQUE, IOWA. OFFICIAL NOTICE PUBLIC NOTICE hereby given that th City Council of the Cit of Dubuque, Iowa, wi hold a public hearin on the '19th day n March 2018, at 6:0 p.m. in, the Histori Federal Building, 35 W. 6th Street, second floor, Dubuque, Iowa at which meeting the City Council proposes to dispose of an interest in the follow- ing described real property by;sale to Jennette E. Santo: LOT 2 HEART Project Place in the City of Dubuque, Iowa - 2056 Washington Street At the.meeting, the City Council will re- ceive oral; and written comments from any teesident pr property wngrg04r,s idRCityf;to sr�I2v ac P,n Wp4t- eryt QQrnrgen o regard- ing the. above public hearing may be sub- mitted to the City Clerk's Office, City Hall, 50 W. 13th Street, on or before said trme of public hearing. Copies of supporting/ documents for the, public hearings are on file in the City Clerk's Office and may be viewed during normal working hours, Any visual' or hearing- impaired persons need- ing special; assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or TTY (563), fo 690-6678 at least 48 hours prior to the P meetiDated this 9th day of a March 2018. Kevin S. Firnstahl re City Clerk." Ci 1t 3/9 RESOLUTION NO. 54-18 pro A RESOLUTION OF ° its INTENTION TO DISPOSE OF Cl OWNED PROPER is SPECIFICALLY, LOT e HEART PROJECT PL e IN THE CITY DUBUQUE, ACCODIG TOI T RECORDED PLA p THEREOF - 205 c WASHINGTON STREET Whereas, the City o Dubuque has obtaine certain real property i e connection' with` th Was h ingto n NeighborhoodRevitalizeProject; for purpose of its acquisition, rehabilitation and re- sale for owner - occupied housing; and Whereas, the City received an offer to purchase this property j from Jennette E. Santo;, and, Whereas, such Washington purpose supports the Neighborhood i Revitalization t ategy it as approved by'the City Council; and accepting the selected offer the City's objectives of providing' homeownership to an income qualified buyers rehabilitation of!ana vacated home can be realized. NOW, THEREFORE, BE IT RESOLVED BY' THE CITY COUNCIL OF THE CITY'; OF DUBUQUE, IOWA: Section 1. That the City of; Dubuque, Iowa, ntends to dispose of is interest • in - the Ilowing , legally= described property: Lot 2r HEART Project lace in - the City of ubuque, Iowa,' ccording to the corded plat thereof Section 2. That the,! ty of Dubuque, Iowa, poses to dispose of, interest in the N- abpye described real 2 estate to Jennette E. ACE Santo for the sum of OF 11 $60,000.00; WA Section 3. That the` HE City' Clerk is hereby authorized and 6 directed to cause this Resolution and a notice to be:published as prescribed b Iowa I d Code Section 364.7 of a I n public hearing on the 'I e ' City's intent to dispose of ';the foregoing- , described Property, to and 11 be held on the 19th day of March 2018, at 6:00 o'clock p.m. at •the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. adopted'thiis 5th daand March 2018. Roy D Buol, Mayor Attest: Kevin S. Firnstahl, City Clerk 1t3/9'