Sale of Property - Weaver Castle, LLC / 396 W. Locust Street Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Sale of Property - Weaver Castle, LLC / 396 W. Locust Street
SUMMARY: City Manager recommending that a public hearing be set for August 17,
2015, on the sale of 396 W. Locust Street to Weaver Castle LLC.
RESOLUTION of Intent to dispose of an interest in City of Dubuque real
estate, setting a time and place for hearing and providing for the
publication of notice thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public
Hearing for 8/17/15
ATTACHMENTS:
Description Type
❑ 396 W. Locust Street Sale-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Notice of Hearing of Intent to Dispose of Property Supporting Documentation
❑ Resolution of Intent to Dispose Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 396 W. Locust Street
DATE: July 28, 2015
Housing & Community Development Department Director Alvin Nash requests the City
Council set a public hearing for August 17, 2015, on the sale of 396 W. Locust Street to
Weaver Castle LLC for $37,180.
Weaver Castle will rehabilitate the property in accordance with State Historic Tax Credit
program guidelines and specifications. As an incentive, the City would offer a $20,000
10-year forgivable loan, provided Weaver Castle signs a Restrictive Covenant
Agreement that states the property must remain a single family home, either owner-
occupied or rental for 21 years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing & Community Development Department Director
THE CITY OF Dubuque
All-America Ci1V
DUBS E 111111 1
Masterpiece on the Mississippi 2007.2012.2013
OME
a better way of living
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing and Community Development Department
SUBJECT: 396 W. Locust Street
DATE: July 30, 2015
Introduction
The purpose of this memorandum is to convey staff's recommendation to dispose of the
property at 396 W. Locust Street.
Background
As part of continued efforts to rehab blighted properties, the City approached DB&T
Community Corp in 2012 and requested they purchase the property at 396 West Locust
Street as an attempt to make sure this property would be rehabbed properly with the
potential of increase homeownership opportunities. DB&T Community Corp maintained
the property until March 2015, when the City purchased it from them using the new CIP
C.H.A.N.G.E Program in the amount of$37,180 with the intentions to renovate the
property.
Discussion
Preliminary cost estimate for total rehabilitation, including lead paint hazard abatement,
is approximately$185,109, plus the acquisition cost of $37,180 bringing the City's
investment total to approximately$222,289. Staff believes the sale price of this
property would be no more than $130,000.
A local known developer, Weaver Castle LLC, approached the Housing Department
with interest in this property. This developer has great experience in rehabilitating
historic properties. They currently own eight (8) properties: four (4) properties right in
the vicinity of 396 W. Locust Street, one (1) on W. 17 t" Street, and two (2) on Loras
Blvd. The Developer would pay the City the cost the City paid for acquisition of
$37,180. As an incentive to rehabilitate the property in accordance with State Historic
Tax Credit program guidelines and specifications, staff would like to offer a $20,000 10-
year forgivable loan, providing the Developer agrees to sign the Restrictive Covenant
Agreement that will state "The property must remain a single family home, either owner-
occupied or rental for 21-years", which means it cannot be converted into amulti-family
unit. This would be an exception to the standard Restrictive Covenant Agreement
that the City recently began using, that states "The Real Estate shall be known and
described as residential Real Estate, and shall not be improved, used or occupied for
other than one (1) private single-family residential use. The Real Estate and any part
thereof must be owner occupied. Rental of the Real Estate is not allowed. No portion
of the Real Estate can be rented as an apartment." Based on the significant
investment of this developer in this neighborhood in rehabbing troubled properties into
attractive, historic rentals, I believe this exception is warranted.
By disposing of this property to Weaver Castle LLC, the City investment would only be
$57,180 rather than $222,289, yet still contributing to the housing stock of Dubuque
and putting a property back on the tax roll. This property has been vacant for several
years.
Recommendation
The action requested of the City Council is to approve the attached resolution,
declaring the City's intent to dispose of the property and set the date for a public
hearing to receive comments on the proposed sale. KLN
2
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 17th day of August, 2015, at 6:30 p.m. in the Historic
Federal Building, 350 West Sixth Street, second floor, Dubuque, Iowa, at which meeting
the City Council proposes to dispose of an interest in the following described real
property (by sale, da, easement, lease, etc.) to Weaver Castle LLC:
Lot 1 of the Subdivision of Lot 15 in D.N. Cooley's Subdivision of part of Out Lots
667, 668, and 669 to Dubuque, in the City of Dubuque, Iowa, according to the
recorded plat thereof, together with and subject to all easements and agreements
of record. Property deeded herein is taken in "as is" condition with no
guarantees or warranties expressed or implied as to habitability or
merchantability.
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 3rd day of August, 2015. (date of publication)
Kevin S. Firnstahl, CMC
City Clerk
Prepared by: Kris Neyen, 350 W. 6th Street, Dubuque IA 52001 563 589-4239
Return to: Kris Neyen, 350 W. 6th Street, Dubuque IA 52001 563 589-4239
RESOLUTION NO. 265-15
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE,
SETTING A TIME AND PLACE FOR HEARING AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
Whereas, the City of Dubuque has obtained certain real property in connection
with the C.H.A.N.G.E. Program; and
Whereas, such rehabilitation will, be completed in accordance with State Historic
Tax Credit Program guidelines and specifications; and
Whereas, the City of Dubuque has received an offer to purchase this certain real
property from Weaver Castle LLC; and
Whereas, by accepting this offer to purchase, the City of Dubuque's objectives of
increased tax base of single family properties and rehabilitation of vacant homes are
further realized,
Whereas, Weaver Castle LLC has agreed to sign the Restrictive Covenant
Agreement that states the property must remain a single family home, either owner -
occupied or rental for 21 years.
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:
Lot 1 of the Subdivision of Lot 15 in D.N. Cooley's Subdivision of part of
Out Lots 667, 668, and 669 to Dubuque, in the City of Dubuque, Iowa,
according to the recorded plat thereof, together with and subject to all
easements and agreements of record. Property deeded herein is taken in
"as is" condition with no guarantees or warranties expressed or implied as
to habitability or merchantability.
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest .
in the Property to Weaver Castle LLC for the sum of $37,180.00, plus providing them
with a $20,000 10 year forgivable loan.
Section 3. That the City Clerk is hereby authorized and directed to cause this
Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a
public hearing on the City's intent to dispose of the Property to be held on the 17th day
of August, 2015, at 6:30 o'clock p.m. at the Historical Federal building, 350 West 6th
Street, Dubuque, Iowa.
Passed, approved, and adopted this 3rd day of August, 201
Attest:
Kevi . Firnsta I, Cy Clerk
Roy D. BdI, Mayor