Sale of City-owned property at 2247 Central Avenue_Initiate Copyrighted
March 10, 2022
City of Dubuque Items to be set for Public Hearing # 1.
Special Meeting
ITEM TITLE: Sale of City-owned property at 2247 Central Avenue
SUM MARY: City Manager recommending the City Council set a public hearing for
March 21, 2022, on the disposition of City-owned real property located at
2247 Central Ave to Armina Odobasic for the amount of$162,000.
RESOLUTION Intent to dispose of an interest in City of Dubuque real
estate to Armina Odobasic 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 March 21,
DISPOSITION: 2022Suggested Disposition:
ATTACHMENTS:
Description Type
I ntent to Dispose of Property at 2247 Central - Set City Manager Memo
Public Hearing-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Public Notice of Hearing Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of City-owned property at 2247 Central Avenue
DATE: March 9, 2022
Housing and Community Development Director Alexis Steger recommends the City
Council set a public hearing for March 21, 2022, on the disposition of City-owned real
property located at 2247 Central Ave to Armina Odobasic for the amount of$162,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Director
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Sale of City-owned property at 2247 Central Avenue
DATE: March 9, 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 2247 Central Avenue.
Backqround
The property at 2247 Central Avenue was originally purchased by True North in
September 2019. The City took ownership as part of the shifting of residential purchase
and rehabilitation component of the Dubuque's True North Corporation to the Housing
Department in January 2020.
Total costs for rehabilitation was approximately$212,380, plus the acquisition cost of
$25,295 bringing the City's investment total to approximately$237,675.
Discussion
This property was identified to have great potential to rehabilitate and create
decent/affordable homeownership options to income-qualifying household under 80%
median income. The City strives to provide affordable housing opportunities throughout
the city of Dubuque. This property is located in the new 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).
Due to some administrative timelines, the City of Dubuque received and conditionally
approved a purchase agreement, and then denied that offer to post the property for sale
on the MLS for at least 2 weeks. This provided equal opportunity for residents to submit
an offer for purchase to be considered.
The City of Dubuque does not take the highest bidder on a property. Any offers
submitted are considered by the goals of the CHANGE program. This is also why the
City does not accept offers with a "required time to respond". Low to moderate income
residents need time to get pre-approvals from a bank to provide offers on homes. They
are often beat out in the competitive real estate market by higher income individuals
who have less barriers to the purchase.
The criteria that will be used to select a buyer is as follows:
1. Price is the appraised value or a lower value set by the Housing Department to
remain affordable ($162,000 appraised value is affordable with incentives
provided). 3% down payment is required.
2. Low to Moderate Income household
3. First Time Homebuyer
4. Housing Choice Voucher Participant
5. Participant in "homeownership ready" programs with the City of Dubuque or its
partners, such as Dupaco's Credit Repair Program.
Five offers were received and a committee evaluated each offer based on the above
criteria. The prevailing offer was that submitted by Armina Odobasic.
The offer made by Armina Odobasic to purchase the property at 2247 Central Avenue is
for $162,000. A $25,000, 0% interest 35-year term loan will be made available to the
buyer to assist with down payment, 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 Armina Odobasic 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.
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 to receive
comments on the proposed sale.
Preoared by Alexis Steger Housing & Community Devel 350 W 61" St Suite 312 (563) 690-6072
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 79-22
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO
ARMINA ODOBASIC SETTING A TIME AND PLACE FOR HEARING, AND
PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque, Iowa (City) owns 2247 Central Avenue (the
Property) legally described as:
Lot 7 in Tivoli Addition, in the City of Dubuque, Iowa, according to the
recorded plat thereof;
MIT@
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 Armina Odobasic;
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 Armina Odobasic for the sum of $162,000.
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 21s' day of March 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 10th day of March, 2022.
Brad M. CaimrM61h, Mayor
ATTEST:
/Y A44,
Adrienne N. Breiffelder, City Clerk
2
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, lowa, will
hold a public hearing on the 21St day of March 2022, at 6:30 p.m. in the Historic Federal
Building, 350 West Sixth Street, 2nd floor, Dubuque, lowa, at which meeting the City
Council proposes to dispose of an interest in the following described real property by sale
to Armina Odobasic:
Lot 7 in Tivoli Addition in the City of Dubuque, lowa, according to the
recorded Plat thereof
locally known as 2247 Central Avenue.
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. 13t" 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 10t" day of March 2022.
Adrienne N. Breitfelder, City Clerk