Washington Street Row Houses PurchaseTHE CITY OF DUbUgU@
DT' T ~ ~ All-America City
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Masterpiece on the Mississippi
200
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Washington Street Row Houses Purchase
DATE: December 9, 2009
Housing and Community Development Department Director David Harris recommends
City Council approval to purchase a rowhouse apartment unit located at 1777
Washington Street from Gary and Sue Bay/Z Fin 2 for $37,000. The City plans to rehab
the property and then market the property as an owner-occupied residence, thereby
increasing home ownership in the Washington Neighborhood.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael 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 CITY OF DUbUgUG'
DT TR ~ All-AmericaCily
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IVlasterpiece on the Mississippi
2007
TO: Michael V Milligen, City Manager
FROM: David H~ Housing and Community Development Department
SUBJECT: Washington Street Row Houses Purchase
DATE: 8 December 09
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 1777
Washington Street.
Background
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. In November 08, the end unit (on 18t" Street) had a serious fire and has
remained vacant since that time. It was purchased by DB&T's community development
corporation. HEART Program students gutted the burned interior and all new windows
have been installed.
DB&T also purchased three other units, and the City, using General Funds, has
acquired one, from Steve Lampe. The other end unit is owner-occupied and will not be
purchased. This leaves one remaining rental unit, at 1777, yet to be acquired.
Project concept
The concept is to acquire all six rental units, then re-sell them as town homes. We
intend to achieve a unified exterior treatment of the building, with similar windows, entry
doors and stoops, lighting and landscaping, including a rear fenced courtyard.
Excepting the fire-damaged unit, we expect to complete nominal rehabs in the $45 000
range. Including acquisition costs in the mid-$30's, we will offer completed units at
$75 - 80 000 each. While no yard or off-street parking is available, this is a 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 under $400 per month.
Recommendation
It is recommended that the Council authorize the City's purchase of the unit at 1777
Washington Street, owned by Gary and Sue Bay/Z Fin 2, at the cost of $37 000. 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 1777 Washington Street in the City of
Dubuque.
RESOLUTION NO. 464 -09
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT
1777 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 Two (2) of Lot Two (2) of the East One-half (E'/) of Lot Ninety (90) and Lot
One (1) of Lot One (1) of the East One-half (E ~/z) of Lot Ninety-one (91) in East
Dubuque Addition, in the City of Dubuque, County of Dubuque, Iowa, according to the
Records of Dubuque County, Iowa; together with and subject to all rights and
easements of record,
at the cost of Thirty-seven thousand dollars ($37 000.)
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 10t" day of December, 2009.
Roy D Buol, Mayor
Atte t:
eanne F. Schneider, CMC, City Clerk