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Amended and Restated Restrictive Covenant for 1849 Jackson Street Copyrighted July 15, 2019 City of Dubuque Consent Items # 19. ITEM TITLE: Amended and Restated Restrictive Covenantfor 1849 Jackson Street SUMMARY: City Manager recommending approval of a resolution amending and restating the single-family residence covenant for 1849 Jackson Street, reducing the time on the covenant from 21 years to 5 years. RESOLUTION Approving anAmended and Restated Single-Family Residence Covenant for the property at 1849 Jackson Street, Dubuque, lowa SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type 1849 Jackson StreetAmendmentto Restricti� City Manager Memo Covenants-MVM Memo Staff Memo Staff Memo Resolution Resolutions Amended Restrictive Covenant Supporting Documentation Dubuque THE CITY OF � uI�AaMca cih DuB E � � I � � I Maste iece on the Mississi i Zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amended and Restated Restrictive Covenant for 1849 Jackson Street DATE: July 9, 2019 The property at 1849 Jackson Street was rehabilitated by Community Housing Initiatives and has been on the market for almost two years. It is a one-bedroom loft, which is not highly sought after as a single-family home. Those that have been somewhat interested in the property revealed that the 21-year restrictive covenant was a barrier to purchasing the property. Housing and Community Development Director Alexis Steger recommends City Council approval of a resolution amending and restating the single-family residence covenant for 1849 Jackson Street, reducing the time on the covenant from 21 years to 5 years. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alexis M. Steger, Housing and Community Development Director THE CTTY OF Dubuque �" ui���eNe�ary DUB E 'il��i;' Masterpiece on the Mississippi Z°°' Z°'Z 2013 2017 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Amended and Restated Restrictive Covenant for 1849 Jackson Street DATE: July 8, 2019 Background The City of Dubuque was previously the owner of 1849 Jackson Street and during ownership placed a restrictive covenant on the property requiring it be a single-family residence for a period of 21-years. The City then sold the property to Community Housing Initiatives for the CHANGE program to rehabilitate and resell the property to help revitalize the neighborhood. Discussion 1849 Jackson Street has been on the market for almost two years. Community Housing Initiatives approached the city to see what might help sell the property. The City of Dubuque has a Washington Neighborhood homebuyer program, and was able to offer any buyer of 1849 Jackson that was low-moderate income additional down payment assistance. Although one offer came in for the property, it was an extremely low and not viable offer. Further information about those that have been somewhat interested in the property revealed that the 21-year restrictive covenant was a barrier to purchasing the property. This property is a one-bedroom loft, which is not highly sought after as a single-family home. If a low-moderate income resident purchased this home, they fear they will have a hard time selling the home, creating additional hardship. After evaluation of the homebuyer programs, a typical low-moderate income homebuyer participating in these programs attempts to sell a home after 5-7years. A 5-year covenant would ensure a typical length of homeownership for a buyer of the property. The goal would be to provide stability in the neighborhood for the next five years while other initiatives continue to build homeownership in this neighborhood. Recommendation I respecffully request the City Council approve the attached resolution amending and restating the single-family residence covenant, reducing the time on the covenant from 21 years to 5 years. Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St., Suite 312, Telephone: 563-690-6072 Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: (563) 589-4100 RESOLUTION NO. 259-19 APPROVING AN AMENDED AND RESTATED SINGLE-FAMILY RESIDENCE COVENANT FOR THE PROPERTY AT 1849 JACKSON STREET, DUBUQUE, IOWA Whereas, City of Dubuque was previously the owner of 1849 Jackson Street, Dubuque, Iowa (hereinafter "Property"); and Whereas, City of Dubuque during its ownership of the Property placed a restrictive covenant on the Property requiring it be a Single -Family Residence for a period of 21 - years; and Whereas, City of Dubuque later sold the Property to Community Housing Initiatives (CHI); and Whereas, CHI has requested the City of Dubuque modify the Single -Family Residence Covenant for the Property from 21 -years to 5 -years; and Whereas, the Parties agree this is a proper modification for the Property due to fact the property is a one -bedroom home which makes it unique and not always suitable for long term occupancy by a family due,to the lack of bedrooms; and Whereas, the Parties now desire to amend, restate, and replace the Prior. Covenant with the Amended and restated Single -Family Residence Covenant attached hereto; and Whereas, the City Council finds that it is in the best interest of the City of Dubuque to approve the Amended and Restated Single -Family Residence Covenant. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Amended and Restated Single -Family Residence Covenant is hereby approved. Section 2. The Mayor is hereby authorized and directed to execute the Amended and Restated Single -Family Residence Covenant on behalf of the City of Dubuque. Section 3. The City is Clerk is hereby authorized and directed to record this Resolution and the Amended and Restated Single -Family Residence Covenant with the Dubuque County Recorder. Passed, approved and adopted this 15th day of Jul 2019. Roy D. ByOI, Mayor Attest: Kevin S Firnstahl, City Clerk Return to/Prepared by: Crenna Brumwell, 300 Main Street, Suite 330 Dubuque, IA 52001 563-589-4381 AMENDED AND RESTATED RESTRICTIVE COVENANTS FOR RESIDENTIAL REAL ESTATE Whereas, the signatories hereto were a party to or subject to a Single -Family Residence Covenant recorded on October 9, 2015 as File 2015-00013115 of the county records (the "Prior Covenant") for the purposes of subjecting the property described below, to certain use limitation in accordance with the terms and conditions specified therein; and Whereas, the signatories hereto now desire to amend, restate, and replace the Prior Covenant with this Amended and Restated Single -Family Residence Covenant ("Modified Covenant"). Now, therefore, the signatories hereto have entered into this Amended Covenant for the purposes of subjecting the property described below to certain use limitations in accordance with the terms and conditions specified herein. 1. The property is legally described as: North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according to the United States Commissioners Map thereof. (Real Estate) locally known as 1849 Jackson Street, Dubuque, Iowa. 2. 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. 3. The City has the right to enforce, by any proceedings in law or in equity, all restrictions, conditions, and covenants now or hereafter imposed by the provisions of these restrictive covenants. 4. These covenants shall be filed for record in the office of the Dubuque County Recorder and all covenants, agreements, promises, and representations herein stated shall be deemed to be covenants running with the Real Estate and shall endure and be binding on the parties hereto, their mortgagees, lienholders, successors and assigns, for a period of five (5) years from the date of the recording of these covenants. The property owner has the right to renew these covenants for successive five (5) year periods. 5. Invalidation of any of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect. 6. The waiver of any violation or failure to enforce any such restrictions, easements, and covenants shall not in any event operate as a waiver, impairment or abrogation of same, or the right to enforce the same in the event of any future or other breach of the same of any other restriction, easement, rule or covenant, by the same or any other person. 7. These restrictions, easements, rules and covenants shall be construed under and in accordance with the laws of the State of Iowa. The foregoing provisions encumber the Real Estate described as: North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according to the United States Commissioners. Map thereof. Executed by the respective signatories effective the date first above written. CITY OF DU : UQUE, IOWA By: Roy D. Bug, Mayor 1 ATTEST: Kevi . Firnstahl, City Clerk On this day of\ �•I , , 2019, before me, a Notary Public in and for said state, personally appeared Roy D. Buol and Kevin S. Firnstahl known to me to be the person(s) named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. 2 • ISFIT7GLEASON Commission Number 719986 My Commission Expires • COMMUNITY HOUSING INITIATIVES \\\,‘ .\•\, By: ATTEST: Notary Public in the State of Iowa My Commission expires • 1° • •-t.D On this \day ac,\A , 2019, before me, a Notary Public in and for said state, personally appeared ,LA ci No, c, and known to me to be the person(s) named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. TAMI J. ERNSTER IOWA NOTARIAL SEAL Notary Public in the State of Iowa COMMISSION] NUMBER: 198722 MY COMMISSION EXPIRES: SEPT. 30, 20!1 My Commission expires 3