1911 Windsor Purchase Real EstaMEMORANDUM
October 14, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Purchase of Real Estate at 1911 Windsor Avenue
Housing and Community Development Department Director David Harris is
recommending City Council approval to purchase a single-family dwelling located at
1911 Windsor Avenue to protect the City's investment.
The Housing Department made a downpayment assistance loan in the amount of
$5,000 to the owner of this property, Kent Blakeman, in 1999. For reason of non-
payment to the first mortgage holder, Crestar Mortgage Corporation, a judgment has
been entered against Mr. Blakeman and a sheriff's sale set for October 28. The first
lien amount is $52,685. The City's current second mortgage balance is $4,040.
Given the City's record of re-selling properties acquired for reason of foreclosures in the
past, it is projected that the City should be able to break even at sale and recoup the
$4,040. The City's ability to work with federal, state and local programs to offer
significantly subsidized financing makes the difference in efforts to sell the property.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mfchael C. Van Milligen '~
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
MEMORANDUM
Date: 14 October 03
To:
From:
Mike ~.~ Milligen, City Manager
David ~arris, Housing and Community Development Department
Re.'
Purchase of real estate at 1911 Windsor Avenue
Introduction
The purpose of this memorandum is to request the City Council's approval to purchase
a single-family dwelling located at 1911 Windsor Avenue.
Background
The Housing Department made a downpayment assistance loan, in the amount of
$5,000, to the owner of this property, Kent Blakeman, in 1999. The home is a single-
family dwelling; Mr. Blakeman was the owner occupant.
For reason of non-payment to the first mortgage holder, Crestar Mortgage Corporation, a
judgment has been entered against Mr. Blakeman and a sheriff's sale set for 28 October.
The first lien amount is $52,685. The City's current second mortgage balance is $4,040.
Discussion
Total indebtedness on the property is $56,725; an in-house estimate of value is $61,000.
Based on initial inspection, staff has determined that an additional $2,675 would need to
be expended to bring the property in compliance with the Housing Code. With real estate
taxes due, total cost for the City will be $60,200.
Recommendation
Given our record in re-selling properties we have had to acquire for reason of
foreclosures in the past, my recommendation is to purchase this property. Our ability to
offer significantly subsidized financing can make the difference. Our projection is that we
should be able to break even at sale and recoup our $4,000 investment.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing purchase of property located at 1911 Windsor Avenue in the City of Dubuque.
RESOLUTION NO. 412-03
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 1911 WINDSOR AVENUE, IN THE CITY OF DUBUQUE
WHEREAS, The City of Dubuque has a secured interest in a property at
1911 Windsor Avenue; and
WHEREAS, this interest is subordinate to a first mortgage and will be otherwise
lost due to a legal action to cause forfeiture.
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 2 of the Subdivision of Lot 22 in Cook's Addition, in the City of Dubuque,
County of Dubuque, Iowa, according to the recorded plat thereof.
At the cost of FIFTY-TWO THOUSAND, SIX HUNDRED EIGHTY FIVE dollars
($52,685.00)
Section 2. That the City of Dubuque be and is hereby authorized and directed to
accept a Quit Claim 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 Quit Claim Deed to be recorded in the office of the Dubuque County
Recorder, together with certified copy of this 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 20th day of October, 2003.
Terrance M. Duggan, Mayor
Attest:
Jeanne Schneider, City Clerk
day of October, 2C
T~rrance M Duggan, May~