Sale of Property at 1699 Washington StreetMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of Property at 1699 Washington Street
DATE: August 9, 2010
Dubuque
krad
AIlAmedcaCity
1 1 I I f
2007
Housing and Community Development Department Director David Harris recommends
the City Council set a public hearing for September 7, 2010, for the purpose of
disposing of City -owned real property located at 1699 Washington Street to KC James
Summers for the appraised value of $102,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
Masterpiece on the Mississippi
TO: Michael , Milligen, City Manager
FROM: David Hai, Housing and Community Development Department
SUBJECT: Sale of property at 1699 Washington Street
DATE: 9 August 10
Dubuque
Annotc•Cl4r
2007
Introduction
The purpose of this memorandum is to request the City Council's approval of the
attached resolution, setting a Public Hearing for the purpose of disposing of City -owned
real property located at 1699 Washington Street.
Background
The property was originally purchased by Dubuque Bank and Trust's Community
Development Corporation and rehabbed with City funds. The home was sold to a first -
time homebuyer family who subsequently defaulted on the mortgage. The City then
acquired the home at foreclosure sale, using Neighborhood Stabilization Program
(NSP) Funds.
Discussion
A new buyer, KC James Summers, has now agreed to purchase the property. As a
requirement of the NSP Program, he is attending HUD certified financial counseling
classes and will graduate from the City's Homebuyer Education Program.
The home was purchased for $35 220 from DB &T. The City has a rehab mortgage on
the property for $68 000. Appraised value of the home is $102 000, which is the sale
price. The home will be purchased with a combination of first -time homebuyer and
rehab grants and loans including a $68 000 second mortgage, from the CDBG and NSP
and IFA Housing Trust Fund Programs and an owner downpayment of $11 200.
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.
RESOLUTION NO. 327 -10
A RESOLUTION OF INTENTION TO DISPOSE OF CITY -OWNED PROPERTY,
SPECIFICALLY, LOTS TWO (2) OF LOT EIGHTY -SIX (86) IN EAST DUBUQUE
ADDITION IN THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, IOWA, ACCORDING
TO THE RECORDED PLAT THEREOF, 1699 WASHINGTON STREET
WHEREAS, the City of Dubuque has purchased certain real property for purpose of its
rehabilitation and re -sale for owner - occupied housing; and
WHEREAS, the City received an offer to purchase this property from a qualifying family;
WHEREAS, such purpose supports the Neighborhood Stabilization Program and
Washington Neighborhood Revitalization strategy as approved by the City Council; and
WHEREAS, by accepting the selected offer the City's objectives of providing first -time
homeownership to a lower- income buyer and rehabilitation of a foreclosed 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 Two (2) of Lot Eighty -Six (86) in East Dubuque Addition in the City of Dubuque,
County 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 KC James Summers for the sum of $40 000.
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 7th day of August , 2010, at 6:30 o'clock p.m. at the Historic Federal
Building, 650 West Locust, Dubuque, Iowa.
Att - s
PASSED, APPROVED AND ADOPTED this 16th day o /August, 2010.
eanne Schneider, CMC, City Clerk
Roy D B • I, Mayor