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Purchase of Property at 347 East 19th StreetTHE CITY OF Dubuque a~a DUB E 1 I Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of Property at 347 East 19th Street DATE: November 9, 2009 Housing and Community Development Department Director David Harris recommends City Council approval to purchase asingle-family home owned by Henschel S. and Jan R. Pike at 347 East 19th Street for $38,900. This home has been in serious disrepair for a number of years. This purchase is part of a program to demolish selected derelict properties. After the building is deconstructed, the owner of the adjacent lot has indicated an interest in purchasing this lot and has agreed to effect exterior rehabilitation improvements on the multi-unit building and address chronic trash and garbage storage problems at this corner location. I concur with the recommendation and respectfully request Mayor and City Council approval. M chael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director THE CTTY OF Dubuque ~~~ E AlhAmericaCAy Masterpiece on the Mississippi 2007 TO: Michael:~`~an Milligen, City Manager FROM: David Hay`i-is Housin and Communit Develo ment De artment 9 Y p p SUBJECT: Purchase of property at 347 East 19th Street DATE: 3 November 09 Introduction The purpose of this memorandum is to request the City Council's approval of the attached resolution, authorizing the purchase of a single family home located at 347 East 19th Street. Discussion This home, owned and occupied by Herschel S and Jan R Pike and their children, has been in serious disrepair for a number of years. Attempts by the Housing Department to enforce code compliance, particularly repair of a badly deteriorated roof, have been unsuccessful. A full inspection determined that the house no longer justifies the costs of rehabilitation, given its advanced deterioration. Housing staff negotiated an agreement with the Pikes to purchase the property for the current balance on their mortgage, at approximately $38 900. The Pikes in turn made the decision to immediately vacate, as the home was no longer habitable. The house is now vacant. Once we have closed on the property, we will contract for its deconstruction and removal. Funds are available from CIP Program No. 1001002-73111, allocated in part for demolition of selected derelict properties, in 2006. We have previously removed two houses in the Washington Neighborhood under this program, at 141 East 11th Street and 346 East 19th Street. Housing staff have been in contact with owners of the adjacent properties, both rentals. In particular, the owner of the 6-unit corner building at 19t" and Washington is interested in purchase of the lot. A preliminary site plan (attached) drawn by the Planning Department shows off-street parking availability for four vehicles, plus room for concealed storage of garbage and recycling containers. Addressing these issues at this corner property would solve a chronic problem of trash storage, due to the insufficient lot size. In exchange for the opportunity to purchase the vacant lot from the city, the owner would agree to a number of exterior alterations to his building - a converted tavern -- in the interest of an improvement in appearance and better historic compatibility with the neighborhood. Action Step The action requested of the City Council is to approve the attached resolution, authorizing the purchase of the property at 347 East 19th Street. With that approval, we will remove the structure, sell the lot to the adjacent rental property owner, effect exterior rehabilitation improvements on the multi-unit building and address chronic trash and garbage storage problems at this corner location. RESOLUTION N0. 435- 09 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 347 EAST 19T" STREET, IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque intends to acquire and remove certain properties located in the Washington Neighborhood Revitalization Area; and WHEREAS, a purchase agreement has been finalized with the owner. 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: Westerly Eight (8) feet of Lot Twenty (20), the Easterly Seventeen (17) feet of the Southerly Sixty-nine (69) feet of Lot Twenty-one (21), and the Easterly Two (2) feet of the Northerly Forty (40) feet of the Westerly Twenty-eight (28) feet of the Southerly Sixty-nine (69) feet of Lot Twenty-one (21), all in East Dubuque, an Addition in the City of Dubuque, County of Dubuque, Iowa, according to the recorded plat thereof. At the cost of Thirty-eight thousand, nine hundred-seven dollars ($38 907.) Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner's interest to the City of Dubuque for the herein-described real estate. Section 3. That the City Clerk be and she is hereby authorized and directed to cause said Quit Claim 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 16t1'day of November, 2009. ~~~ Roy D uol, Mayor Attest: eanne Schneider, CMC, City Clerk