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1133 White St Intent to DisposeMEMORANDUM TO: FROM: SUBJECT: September 11, 2001 The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Sale of Real Property Located at 1133 VVhite Street In February 1997, the City Council approved the purchase of a derelict two-story brick building at 1133 White Street for $10,000. The building had been vacant and abandoned for many years. This property was purchased with U.S. Department of Housing and Urban Development Special Purpose Grant funds and the intent was to re- sell it as a multi-unit rental property. To stabilize the building after purchase, the Housing Department replaced the roof, repaired the parapet walls and removed many truckloads of trash from the interior, at a cost of $21,195. Housing and Community Development Department Director David Harris is recommending sale of the property to Jack and Steven Stackis for $5,165. They are local contractors who intend to rehab the property to create three rental units. The new buyers intend to invest approximately $133,000 in the project. It is requested that this be set for public hearing on October 1, 2001. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment CC: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director TO: FROM: RE: Introduction CITY OF DUBUQUE, IOWA MEMORANDUM 10 September 2001 Mike Van Milligen, City Manger David Harris, Housing and Community Development Department Sale of real property located at 1133 White Street The purpose of this memorandum is to request City Council to hold a public hearing for the purpose of disposal of real estate located at 1133 White Street in the City of Dubuque. Discussion The City Council approved the purchase of a derelict two-story bdck building at 1133 White Street for $10,000 at its 17 February 1997 meeting. The building had been vacant and abandoned for many years. This property was purchased with HUD Special Purpose Grant funds and the intent was to re-sell it as a multi-unit rental property. To stabilize the building after purchase the Housing Department replaced the roof, repaired the parapet walls and removed many truckloads of trash from the interior, at a cost of $21,195. The building has been advertised for sale several times since 1998; we have finally received an acceptable offer. A bid for $5,165 was received from Jack and Steven Stackis, who are local contractors and intend to rehab the property themselves. The Housing Department has worked with their firm on a number of rehabilitation projects. The building will be restored into 3 units when completed. The new buyer will invest $132,912 in the project. Recommendation It is recommended that the City Council approve the sale of the property to Jack and Steven Stackis. Although this sale will result in a loss of HUD Special Purpose Grant funds, the City will be gaining three units that will be rented to Iow-moderate income tenants for 20 years. The building will be retumed to the tax roll and a vacant abandoned property will be m-occupied and properly managed. Action Step The action requested of the City Council is to approve the Mayor's execution of the attached resolution, declaring the City's intent to dispose of the property and setting the date for the public hearing to receive comments on the proposed sale. DH/jap Attachment RESOLUTION NO. 416-01 RESOLUTION OF INTENTION TO DISPOSE OF CITY-OWNED PROPERTY, SPECIFICALLY, SOUTH ONE-HALF (S112) OF THE MIDDLE ONE-FIFTH (M115) OF OUT LOT 479 IN THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, IOWA, ACCORDING TO THE UNITED STATES COMMISSIONERS MAP; OTHERWISE KNOWN AS 1133 WHITE STREET. WHEREAS, the City of Dubuque pumhased certain real estate from Madonna Lucas, due to its abandoned and derelict condition; and WHEREAS, bids have been received from membem of the general public in response to a solicitation to pumhase. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa, intends to dispose of its interest in the following legally-described property: South One-half (Sl/2) of the Middle One-fi[th (Ml/5) of Out Lot 479 in the City of Dubuque, County of Dubuque, Iowa, according to the United States Commissioners Map. Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above described real estate to Jack and Steven Stackis for the sum of Five Thousand, One Hundred, Sixty-Five dollars ($5,165.00). Section 3. That the City Council meet in the Carnegie Stout Public Library Auditorium, 11th and Bluff Streets, Dubuque, Iowa, at 6:30 p.m. on October 1, 2001 for the purpose of holding a public headng and taking final action on the disposition of the above described real estate in the City of Dubuque, Iowa. Section 4. That the City Clerk be and she is hereby authorized and directed to cause a notice of such public hearing and the City Council's intent to dispose of such property to be published as prescribed under Iowa Code Section 364.7. Passed, approved and adopted this 17th day of September 2001. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider