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Sale of City-owned property at 351 E 15th Street_InitiateCopyrighted February 7, 2022 City of Dubuque Items to be set for Public Hearing # 3. City Council Meeting ITEM TITLE: Sale of City -owned property at 351 E 15th Street SUMMARY: City Manager recommending setting a public hearing for February 21, 2022, on the disposition of City -owned real property located at 351 E 15th Street to Cameron K. Hall for the amount of $122,000. RESOLUTION Intent to dispose of an interest in City of Dubuque real estate to Cameron K. Hall setting a time and place for hearing, and providing for the publication of notice thereof SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for February DISPOSITION: 21, 2022Suggested Disposition: ATTACHMENTS: Description 351 E 15th St- Set public hearing to dispose of property-MVM Memo 351 E 15th Street set public hearing to dispose of property 351 E 15th Street set public hearing to dispose of property resolution 351 E 15th Street Public Hearing Notice Type City Manager Memo Staff Memo Resolutions Supporting Documentation THE C DUjIBQTE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of City -owned property at 351 E 15th Street DATE: February 3, 2022 Dubuque WAWca 914 ii 2007-2012.2013 2017*2019 Housing and Community Development Director Alexis Steger recommends the City Council set a public hearing for February 21, 2022, on the disposition of City -owned real property located at 351 E 15t" Street to Cameron K. Hall for the amount of $122,000. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing and Community Development Director THE C Dubuque DUUB-.'&--FE III-A aeriea C ft -. Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Sale of City -owned property at 351 E 15t" Street DATE: January 31, 2022 Introduction The purpose of this memorandum is to request the City Council to set a Public Hearing for the purpose of disposing of City -owned real property located at 351 E. 15t" Street. Background The property at 351 E. 15t" Street was originally purchased by the City in January 2008 and rehabbed with the HEART Program. The property was sold in 2010 to an income - qualifying homebuyer with assistance to help with downpayment/closing costs. That homebuyer passed away in 2017. At the time of death, the deceased had two (2) outstanding mortgages on the property, the first with American Trust ($31,000), the second with the City of Dubuque ($23,000). The City bought an assignment of the American Trust mortgage in 2018 to protect its interest in the property. As the debt -to -equity ratio for the property was slim, the heirs did not process an estate for the deceased. The City petitioned for title to this abandoned property and was granted by the Court in January 2020. City staff determined that work needed to be done to the property to bring it back up to Rehab Standards, which included gutting kitchen, leveling 1st floor throughout; adding full bath to 1st floor; complete exterior and interior painting of the property; new flooring and light fixtures throughout; new storm doors; removing walls and obsolete HVAC no longer used; etc. Total rehab costs $76,987. Discussion This property was identified to have great potential to rehabilitate and sell it to an income -qualifying household under 80% median income. The City strives to provide affordable homeownership opportunities throughout the City of Dubuque. This property is located in the Washington Neighborhood targeted area. It offers increased housing choice for an income qualified buyer using Housing Trust Funds (2601021-62764) and Community Development Block Grant (CDBG) funds (2601234-62764). An offer has been made by Cameron K. Hall to purchase the property at 351 E. 15' Street for $122,000. A $25,000, 0% interest 35-year term loan will be made available to the buyer to assist with downpayment, closing costs, other related costs, or simply by reducing the 1st mortgage. Revenue from the sale of this property will go back to the original funding source which is Tax Increment Financing (TIF) 3602766-54104. Financing to Cameron K. Hall will be provided through a first mortgage from an area lender. This sale/rehabilitation will maintain owner -occupied housing in the neighborhood and increase the tax base. Additionally, it meets the Voluntary Compliance Agreement (VCA) objectives of increasing homeownership opportunities for low -moderate income households throughout the City of Dubuque. Recommendation I respectfully request the City Council approve the attached resolution, declaring the City's intent to dispose of the property and set the date for the public hearing for February 21, 2022, to receive comments on the proposed sale. Prepared by: Kris Neyen, Rehabilitation Programs Supervisor Prepared by Kris Neven Housing & Community Devel 350 W 611 St Suite 312 Telephone (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 50-22 INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO CAMERON K. HALL SETTING A TIME AND PLACE FOR HEARING, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Dubuque, Iowa (City) owns 351 E. 15th Street (the Property) legally described as: "Wm. Reisen Place", and Lot 2 of the South'% of Lot 147 in East Dubuque Addition and the Westerly 10 feet of Lot 1 of the South 'Y2 of Lot 147 in East Dubuque Addition, in the City of Dubuque, Iowa, according to the recorded plat thereof; and WHEREAS, City acquired the Property for the purpose of its restoration and re -sale for owner -occupied housing; and WHEREAS, City received an offer to purchase the property from Cameron K. Hall; and WHEREAS, by accepting the selected offer the City's objectives of providing homeownership to an income qualified buyer and rehabilitation of a vacated home can be realized and is consistent with the City's goal of creating opportunities for affordable home ownership. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above -described real estate to Cameron K. Hall for the sum of $122,000. Section 2. That the City Council shall conduct a public hearing on the proposed disposition of real estate in the City Council Chambers at the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa on the 21st day of February 2022 beginning at 6:30 p.m. Section 3. That the City Clerk be and is hereby authorized and directed to publish notice of the public hearing in the form attached hereto, according to law. Passed, approved and adopted this 7th day of February 2022. <13�4d M. Cavanagh, Mayor ATTEST: Adrienne N. Breitfelder, City Clerk CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 21 st day of February 2022, at 6:30 p.m. in the Historic Federal Building, 350 West Sixth Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to dispose of an interest in the following described real property by sale to Cameron K. Hall: "Wm. Reisen Place", and Lot 2 of the South '/2 of Lot 147 in East Dubuque Addition and the Westerly 10 feet of Lot 1 of the South '/2 of Lot 147 in East Dubuque Addition, in the City of Dubuque, Iowa, according to the recorded plat thereof; locally known as 351 E. 15th Street. At the meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. Written comments regarding the above public hearing may be submitted to the City Clerk's Office, City Hall, 50 W. 13th Street, on or before said time 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 needing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or TTY (563) 556-9948 at least 48 hours prior to the meeting. Dated this 7th day of February 2022. Adrienne N. Breitfelder, City Clerk