Washington Street Row Houses PurchaseTHE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Washington Street Row Houses Purchase
DATE: July 2, 2008
Housing and Community Development Department Director David Harris is
recommending approval to purchase the rowhouse apartment unit located at 1787
Washington Street at a cost of $38,000 from MarDe Enterprises/Steve Lampe.
The "rowhouse" apartments in the 1700 block of Washington Street, located across
from the Washington Court/Health Center complex, have long been a blighting influence
in the neighborhood. These are seven connected units, constructed circa 1890 in a
masonry style mimicking the Dubuque Casket Factory building. They are two-story
units, each with approximately 1650 square feet of living area, with full basements. One
is owner-occupied; others have presented numerous tenant behavior issues in recent
years. Last November, the end unit (on 18th Street) had a serious fire and has
remained boarded and vacant since that time. The six rentals are owned by four
landlords, two of whom reside in Wisconsin.
To combat the tenant management issues, and particularly to effect a restoration of the
end unit destroyed in the fire, Housing staff and DB&T have contacted the absentee
owners in the interest of determining the availability of sale. Joe Healey agreed to sell
his two units: the fire-damaged one for $12 000 and the other for $36 000. These have
been purchased by DB&T. The Bank has also reached agreement to acquire two units
owned by Andrea Baker Olmanson, for $65 000. Housing staff have secured an offer to
purchase a unit from Steve Lampe, for $38 000. This leaves one remaining rental,
owned by Gary Bay. DB&T has contacted this owner.
Project concept
The concept is to acquire all six rental units, then re-sell them as town homes. The
seventh, owner-occupied unit will not be purchased. The intent is to effect a unified
exterior treatment of the building, with similar windows, entry doors and stoops, lighting
and landscaping. Excepting the fire-damaged unit, the plan is to complete nominal
rehabs in the $25-35 000 range. Including acquisition costs in the mid-$30's, completed
units will be offered at no more than $65 000 each. While no yard or off-street parking
is available, this is a very handsome, historic building, with generously-sized units. In
this price range, we intend to market to singles or small families. Coupled with the
preferred financing available to Washington Neighborhood residents -including 10-year
tax abatements - it is believed that these will be marketable as owner-occupied
residences. Total mortgage, tax and insurance payments will be about $310 per month.
The City will be addressing chronic tenant management issues at these rowhouses,
implement a historic restoration project and increase home ownership in the
Washington Neighborhood.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~
Micha I C. Van Mi ligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
Dubuque
THE CITY OF
DUB E A~~~
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Masterpiece on the Mississippi
2007
TO: Michael Van I 'Irgen, City Manager
FROM: David I~- is, Housing and Community Development Department
SUBJECT: Washington Street Row Houses Purchase
DATE: 16 June 08
Introduction
The purpose of this memorandum is to request the City Council to approve the attached
resolution, authorizing purchase of a rowhouse apartment unit located at 1787
Washington Street.
Background
As part of the Washington: Revitalize! strategy initiated in 2005, we have made
selective purchases of properties throughout the neighborhood. Most notably, in a
partnership with Dubuque Bank and Trust, a subsidiary DB&T community development
corporation has acquired several of the most derelict structures in the area. Working
with rehab staff from the Housing Department, these have been rehabilitated and resold
to first-time home buyer families.
More recently, City General Funds have been used to purchase two vacated homes
previously acquired by Elm Street Development LLC. Rehabilitation work on the first of
these has been completed and the restored home is now being marketed for resale.
Discussion
The "rowhouse" apartments in the 1700 block of Washington Street, located across
from the Washington Court/Health Center complex, have long been a blighting influence
in the neighborhood. These are seven connected units, constructed circa 1890 in a
masonry style mimicking the Dubuque Casket Factory building. They are two-story
units, each with approximately 1650 square feet of living area, with full basements. One
is owner-occupied; others have presented numerous tenant behavior issues in recent
years. Last November, the end unit (on 18th Street) had a serious fire and has
remained boarded and vacant since that time. The six rentals are owned by four
landlords, two of whom reside in Wisconsin.
To combat the tenant management issues, and particularly to effect a restoration of the
end unit destroyed in the fire, Housing staff and DB&T have contacted the absentee
owners in the interest of determining the availability of sale. Joe Healey agreed to sell
his two units: the fire-damaged one for $12 000 and the other for $36 000. These have
been purchased by DB&T. The Bank has also reached agreement to acquire two units
owned by Andrea Baker Olmanson, for $65 000. Housing staff have secured an offer to
purchase a unit from Steve Lampe, for $38 000. This leaves one remaining rental,
owned by Gary Bay. DB&T has contacted this owner.
Project concept
The concept is to acquire all six rental units, then re-sell them as town homes. The
seventh, owner-occupied unit will not be purchased. We intend to effect a unified
exterior treatment of the building, with similar windows, entry doors and stoops, lighting
and landscaping. Excepting the fire-damaged unit, we expect to complete nominal
rehabs in the $25-35 000 range. Including acquisition costs in the mid-$30's, we will
offer completed units at no more than $65 000 each. While no yard or off-street parking
is available, this is a very handsome, historic building, with generously-sized units. In
this price range, we intend to market to singles or small families. Coupled with the
preferred financing available to Washington Neighborhood residents -including 10-year
tax abatements - we think it will be marketable as owner-occupied residences. Total
mortgage, tax and insurance payments will be about $310 per month.
Recommendation
It is recommended that the Council authorize the City's purchase of the unit at 1787
Washington Street, owned by MarDe Enterprises/Steve Lampe, at the cost of $38 000.
This is the only unit, of the six rentals, that will be acquired by the City; DB&T will own
the others. By this means, we can address chronic tenant management issues at this
property, effect its historic restoration and increase home ownership in the Washington
Neighborhood.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing purchase of a rental unit located at 1787 Washington Street in the City of
Dubuque.
~~~'
~~
RESOLUTION NO. 225 - 08
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 1787 WASHINGTON STREET, IN THE CITY OF DUBUQUE,
IOWA
WHEREAS, the City of Dubuque intends to acquire certain properties located in
the Washington Neighborhood for the purpose of their rehabilitation and resale; and
WHEREAS, such acquisitions are intended to result in increased owner-
occupancies, improved properties and increased real estate values.
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 acquisition of the
following legally-described property:
Lot One (1) of Lot Two (2) of the East One-half (E ~/2) of Lot Ninety-one (91) in
East Dubuque Addition, in the City of Dubuque, Iowa, according to the corrected plat in
Book of Plats #24, page 103, Records of Dubuque County, Iowa; together with and
subject to all rights and easements of record,
at the cost of Thirty-eight thousand dollars ($38 000.)
Section 2. That the City of Dubuque be and is hereby authorized to accept a
Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque,
Iowa for the herein described real estate.
Section 3. That the City Clerk be and she is hereby authorized and directed to
cause said Warranty Deed to be recorded in the Office of the Dubuque County
Recorder, together with certified copy of the Resolution.
Section 4. That the City Clerk be and she is hereby directed to forward a copy of
this Resolution to the Dubuque County Assessor and the Dubuque County Auditor..
PASSED, APPROVED AND ADOPTED this 7tn day of J, ly, 2008.
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Roy D° }uol, Mayor
Attest:
eanne Schneider, CMC, City Clerk
Washington Neighborhood Parcels
Washington Street - 17th to 18th Street
NEACEY,70SEPH _....
~4 A & 1ANICE
1795 WASHINGTON
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C/0 STEVE IAMPE
1787 WASHINGTON
BAKEI't; ANDREA LEA
';.1785 WASHINGTON
CLARK, KEITH ~ -~zFrNZcm~ --
KARLTON GARY & SUSAN BAY
1717 WASHINGTON
260 EAST 18TH ST ` BAKER, ANDREA L
1775 WASHINGTON
HEALEY,"I05EPH _
A & JANICE
BISHOP, GARY F ',
1765 WASHINGTON
PUCCIO,
JOSEPH A
1753 WASHINGTON
WAGNER, SHARON M
1741 WASHINGTON
TRAUSCI~, .;
FORREST R
1737 WASHINGTON
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FORREST R
_„1731. WASHINGTON -, , ,
TRAU~C H, .
FORREST R
1725 WASHINGTON
KNOCKEL,
FRANK & RACHEL
1715 WASHINGTON
WASHINGTON
COURT LP
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~ 1798 WASHINGTON
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1789 ELM
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h:\HOUSing\Washington Urban Revitalization
District\BlockMap. mxd
plotfi les: 1900Kniest. pdf
Qeated by NMB 03-21-07, updated 06-17-08
Base data provided by Dubuque County GIS
Legend
Non-owner occupied Properties
Owner-occupied Properties
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THE Crl'Y OF
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