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Sale of City-Owned real property at 2056 Washington Street_Santo Copyrighted March 5, 2018 City of Dubuque Items to be set for Public Hearing # 1. ITEM TITLE: Sale of City-Owned real propertyat2056 Washington Street SUMMARY: City Manager recommending that the City Council set a public hearing for March 19, 2018, to dispose of City- owned real property located at 2056 Washington Street to Jennette E. Santo. RESOLUTION of Intention to dispose of City-owned property, specifically Lot 2 Heart Project Place in the City of Dubuque, lowa, According to the recorded Plat there of- 2056 Washington Street SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for March 19, 2018 ATTACHMENTS: Description Type Sale of 2056 Washington Street-NNM Memo City Manager Memo Staff Memo Staff Memo 2056 Washington Resolution Resolutions Notice of Intentto Dispose Supporting Documentation THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of City-Owned Property at 2056 Washington Street DATE: February 28, 2018 Housing and Community Development Department Director Alvin Nash recommends the City Council set a public hearing for March 19, 2018, to dispose of City-owned real property located at 2056 Washington Street to Jennette E. Santo for $60,000. A $20,000, 0°k interest; 21-year term loan will be made available per the Washington Neighborhood Homebuyer Loan Program to assist with down payment, closing costs, other related costs, or simply by bringing down the 1 S� mortgage. Financing to Jennette Santo will be provided through a first mortgage from an area lender. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� ��� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alvin Nash, Housing & Community Development Department Director THE CITY OF Dubuque � All-America City UB E � r � Masterpiece on the Mississippi 200,.2012.2013 TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Sale of City-owned property at 2056 Washington Street DATE: February 27, 2018 Introduction The purpose of this memorandum is to request the City Council action to set a Public Hearing for the purpose of disposing of City-owned real property located at 2056 Washington Street. Background In 2006, Jesseca L. Zaruba (the Owner) purchased the property located at 2056 Washington Street with the assistance of loans totaling fifty-two thousand three hundred thirty-three dollars ($52,333.00) from the City. These loans consisted of forgivable loans, deferred loans, and 0% interest loans. The City purchased the Assignment of Mortgage from Dubuque Bank and Trust in the amount of $21 ,803.00, in order to avoid foreclosure and keep control of the property. The current debt is approximately fifty- seven thousand dollars ($57,000.00), which includes $10,000 in rehab costs. Attempts were made to help the Owner get back on track financially and resume mortgage payments, but all efforts were unsuccessful. Fearing foreclosure, the Owner abandoned the property and left Dubuque approximately three (3) years ago. Additional efforts were made to work with the Owner following abandonment, but those efforts were also unsuccessful. To avoid the property falling into disrepair, to eliminate the presence of an abandoned property in the Washington Neighborhood, to avoid foreclosure for the Owner, and to ultimately return the property to a new owner/occupant, the Owner executed a Quit Claim Deed transferring the property to the City. The City rehabbed the property to re- sell to an income qualifying household. This plan is consistent with the Washington Neighborhood Strategic Plan adopted by the City Council in 2009 and the City's efforts to increase homeownership opportunities in the Washington Neighborhood. Discussion An offer has been made by Jennette E. Santo, to purchase the property at 2056 Washington Street for $60,000. A $20,000, 0% interest; 21-year term loan will be made available per the Washington Neighborhood Homebuyer Loan Program to the buyer to assist with down payment, closing costs, other related costs, or simply by bringing down the 15� mortgage. The revenue from sale of this property will go back to the original funding source which is the IFA Trust Fund 2681021 . Normally a 21-year covenant would be placed on the property prior to sale, but due to the funding sources, lowa Finance Authority (IFA) and Community Development Block Grant (CDBG), the 21-year covenant is not allowed, as stated below. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Recipient and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. Financing to the Jennette E. Santo will be provided through a first mortgage from an area lender. Action Step 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 the public hearing to receive comments on the proposed sale. KLN RESOLUTION NO. 54-18 A RESOLUTION OF INTENTION TO DISPOSE OF CITY -OWNED PROPERTY, SPECIFICALLY, LOT 2 HEART PROJECT PLACE IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE RECORDED PLAT THEREOF — 2056 WASHINGTON STREET Whereas, the City of Dubuque has obtained certain real property in connection with the Washington Neighborhood Revitalize Project; and for purpose of its acquisition, rehabilitation and re -sale for owner -occupied housing; and Whereas, the City received an offer to purchase this property from Jennette E. Santo; and Whereas, such purpose supports the Washington Neighborhood Revitalization strategy as approved by the City Council; and Whereas, by accepting the selected offer the City's objectives of providing homeownership to an income qualified buyers and rehabilitation of a vacated home can be realized. 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 2 HEART Project Place in the City of Dubuque, Iowa, according to the recorded plat thereof — Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above described real estate to Jennette E. Santo for the sum of $60,000.00; 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 foregoing -described Property, to be held on the 19th day of March 2018, at 6:00 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 5th day of March 2018. Attest: Ke in S.F rnstahl, City Clerk ozi Roy D Buol, Mayor 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 19�h day of March 2018, at 6:00 p.m. in the Historic Federal Building, 350 West Sixth Street, second floor, Dubuque, lowa, at which meeting the City Council proposes to dispose of an interest in the following described real property by sale to Jennette E. Santo: LOT 2 HEART Project Place in the City of Dubuque, lowa — 2056 Washington Street 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. 13�h 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 day of March 2018. Kevin S. Firnstahl, CMC City Clerk STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: March 9, 2018, and for which the charge is $47.22. dOrt4.14,1)14 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, ,2015 . this I ( day of Qu -14,„ Notary Pu in and for Dubuque County, Iowa. JANET K. PAPE Commission Number 199659 My Comm. Exp. DEC 11, 2019 CITY OF DUBUQUE, IOWA, OFFICIAL NOTICE PUBLIC NOTICE hereby given that th City Council of the. City of Dubuque, Iowa, wi hold a public hearin on the 19th day o March' 2018, at 6:0 p.m. in the Histori Federal Building, 35 W. 6th Street,:secon floor, Dubuque, Iowa at which` meeting' the City Council proposes to dispose- - of an interest in the follow- ing described real property by,sale to Jennette E Santo: LOT 2 HEART Project Place in the City of Dubuque, Iowa - 2056 Washington Street At the.meeting,"the City Council will 're- ceive oral and written comments= from any' resident or property �dnCity��to tl,aCR9 ?lryt DISPOSE OF CITY OWNED PROPERTY is SPECIFICALLY, LOT e HEART PROJECT PLAC IN THE' CITY 0 DUBUQUE, IOWA ACCORDING TO THE RECORDED PLAT 0 THEREOF -' 2056 c WASHINGTON STREET 0 Whereas, the City of d Dubuque has obtained Certain real. property in connection with the. Washington Neighborhood Revitalize Project; and for purpose of its acquisition, rehabilitation and re- sale for owner - occupied housing; and Whereas,; the City received an, offer to purchase this property, from Jennette E. Santo; 1 and j Whereas, . such W purpose os h supports the Neighborhood Revitalization strategy`, as approved".' by the Y Council; and, accepting the elected offer the '? City's objectives of providing' homeownership to an income qualified buyers and rehabilitation of a vacated home can be realized. NOW, THEREFORE, BE IT RESOLVED BY' THE CITY COUNCIL' OF THE CITY' OF DUBUQUE; OWA: Section 1. That. the ity of Dubuque, Iowa,. ntends to dispose of interest in the Ilowing` ,,'legally_ escribed property: Lot 2 HEART Project' ace= in the City of ubuque, Iowa, cording to the corded plat thereof - Section 2. That the y of Dubuque, Iowa, poses to dispose of. interest in the abpye described real estate to ,Jennette E. Santo for the sum of E1F $60000.00; 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 II Code Section 364.7 of a public hearing' on the City's intent to dispose of ' the foregoing described Property, to be held on the 19th day of• March 2018,` at 6:00 o'clock' p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 5th day of March 2018. . Roy D Buol, Mayor Attest: Kevin S. Firnstahl, City Clerk 1t3/9:" teri-i-ggrEt enfq regar;.d- ing. the above public hearing" may be -sub- mitted to the : City I Clerk's Office, City Hall, 50 W. 13th Street, on or before said time of public hearing. Copies of supporting{ dbcuments for ;they' 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 need- ing special assistance„ or persons with special accessibility needs should contact the City l Clerk's Office at (563) its 589-4100 or TTY (563)1o 690-6678 at least 48 d hours prior to the PI meetiDated this 9th day of D March 2018. ac Kevin S. Firnstahl re It 379 City Clerk ` Ci RESOLUTION NO. 54-18 pro A RESOLUTION OF ` its NTENTION TO