Intent to Dispose of Property at 396 W. Locust Street_InitiateCopyrighted
June 1, 2020
City of Dubuque Items to be set for Public Hearing # 1.
ITEM TITLE: Intent to Dispose of Property at 396 W. Locust Street
SUMMARY: City Manager recommending that the City Council set a
public hearing for June 15, 2020, for the purpose of
disposing of City -owned real property located at 396 West
Locust Street to Melissa M. and Wesley M. Anderson.
SUGGESTED DISPOSITION:
RESOLUTION Intent to dispose of an interest in City of
Dubuque Real Estate to Melissa M. and Wesley M.
Anderson, Setting a time and place for hearing, and
providing for the publication of notice thereof
Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for June 15, 2020
ATTACHMENTS:
Description Type
Intent to Dispose of 396 West Locust Street-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Resolution Setting Hearing Resolutions
Notification of Hearing Supporting Documentation
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of City -Owned Property at 396 West Locust Street
DATE: May 26, 2020
Dubuque
All-A.aia City
111111
2007.2012.2013
2017*2019
Housing and Community Development Director Alexis Steger requests the City Council
set a public hearing for June 15, 2020, for the purpose of disposing of City -owned real
property located at 396 West Locust Street to Melissa M. and Wesley M. Anderson for
$144,500.
The City purchased the property in 2015 using Community Development Block Grant
(CDBG) funds in the amount of $37,180 with the intention to renovate the property.
Total rehabilitation, including lead paint hazard abatement and meeting all historic
guidelines, was approximately $167,000, bringing the City's investment total to
approximately $204,180.
A $15,000, 0% interest loan will be made available to the buyers to assist with down
payment, closing costs, other related costs, or simply by reducing the 1st mortgage. Ten
Thousand Dollars will be a 5-year forgivable loan and $5,000 will be due on sale of
property. Revenue from the sale of this property will go back to the original funding
source which is Community Development Block Grant.
Financing to Melissa and Wesley Anderson will be provided through a first mortgage from
Dupaco Community Credit Union.
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
Alexis M. Steger, Housing and Community Development Director
2
Masterpiece on the Mississippi
Dubuque
AII•America City
1 1 1 1 1'
2007.2012.2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Sale of City -owned property at 396 West Locust Street
DATE: May 26, 2020
Introduction
The purpose of this memorandum is to request the City Council to set a Public Hearing
for the purpose of disposing of City -owned real property located at 396 West Locust
Street.
Background
As part of continued efforts to rehab blighted properties, the City approached DB&T
Community Development Corp in 2012 and requested they purchase the property at
396 West Locust Street as an attempt to make sure this property would be rehabbed
properly with the potential of increase homeownership opportunities. DB&T
Community Development Corp maintained the property until March 2015, when the City
purchased it from them using Community Development Block Grant (CDBG) funds in
the amount of $37,180 with the intentions to renovate the property.
Total rehabilitation, including lead paint hazard abatement and meeting all historic
guidelines, was approximately $167,000, plus the acquisition cost of $37,180 bringing
the City's investment total to approximately $204,180.
Discussion
This property was identified to have great potential to rehabilitate and sell it to an
income -qualifying household under 80% median income. The City strives to provide
affordable homeownership opportunities throughout the City of Dubuque. It offers
increased housing choice for an income qualified buyer using CDBG funds, as cited in
the Voluntary Compliance Agreement (VCA) findings.
An offer has been made by Melissa M. and Wesley M. Anderson to purchase the
property at 396 West Locust Street for $144,500. A $15,000, 0% interest loan will be
made available to the buyers to assist with down payment, closing costs, other related
costs, or simply by reducing the 1st mortgage. $10,000 will be a 5-year forgivable loan
and $5,000 will be due on sale of property. Revenue from the sale of this property will
go back to the original funding source which is Community Development Block Grant
(CDBG) 26061300-54104.
Financing to Melissa and Wesley Anderson will be provided through a first mortgage from
Dupaco Community Credit Union.
This sale/rehabilitation will maintain owner occupied housing in the neighborhood and
increase the tax base. Additionally, it meets the Voluntary Compliance Agreement
(VCA) objectives of increasing homeownership opportunities for low -moderate income
households throughout the City of Dubuque.
Recommendation
I respectfully request the City Council 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.
Prepared by: Kris Neyen, Rehabilitation Programs Supervisor
RESOLUTION NO. 166-20
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO
MELISSA M. AND WESLEY M. ANDERSON, SETTING A TIME AND PLACE FOR
HEARING, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque, Iowa (City) owns 396 West Locust Street (the Property)
legally described as:
Lot 1 of the Subdivision of Lot 15 in D.N. Cooley's Subdivision of part of Out Lots
667, 668, and 669 to Dubuque, in the City of Dubuque, Iowa, according to the
recorded plat thereof, together with and subject to all easements and agreements of
record; and
WHEREAS, City acquired the Property from DB&T Community Development Corp as a
vacant property for the purpose of its restoration and re -sale for owner -occupied housing; and
WHEREAS, City received an offer to purchase the property from Melissa M. and Wesley
M. Anderson; and
WHEREAS, by accepting the selected offer the City's objectives of providing
homeownership to an income qualified buyer and rehabilitation of a vacated home can be
realized and is consistent with the City goal of creating opportunities for affordable home
ownership.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque, Iowa, proposes to dispose of its interest in the
above described real estate to Melissa M. and Wesley M. Anderson for the sum of
$144,500.00.
Section 2. That the City Council shall conduct a public hearing on the proposed disposition
of real estate in the City Council Chambers at the Historic Federal Building, 350 W. 6th Street,
Dubuque, Iowa on the 15th day of June 2020 beginning at 6:30 p.m.
Section 3. That the City Clerk be and is hereby authorized and directed to publish notice
of the public hearing in the form attached hereto, according to law.
Passed, approved and adopted this 1st day of June 2020.
1
/24e
oy D. Buol, Mayor
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will
hold a public hearing on the 15th day of June 2020, at 6:30 p.m. in the Historic Federal
Building, 350 West Sixth Street, second floor, Dubuque, Iowa, at which meeting the City
Council proposes to dispose of an interest in the following described real property to
Melissa M. and Wesley M. Anderson:
Lot 1 of the Subdivision of Lot 15 in D.N. Cooley's Subdivision of part of Out Lots
667, 668, and 669 to Dubuque, in the City of Dubuque, Iowa, according to the
recorded plat thereof, together with and subject to all easements and agreements
of record
Locally known as 396 West Locust 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. 13th 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 , 2020.
Kevin S. Firnstahl, CMC
City Clerk