Sale of Property_1777 Washington Street THE CITY OF 411WA Dubuque*****
DUBB E All erica City
Masterpiece on the Mississippi
2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of Property at 1777 Washington Street
DATE: August 1, 2012
As part of the Washington Neighborhood revitalization strategy, the `Historic
Washington Row Houses,' located at 1765-1795 Washington Street, were targeted for
acquisition, in 2008. Six rental units (a seventh is owner-occupied and was not
acquired) were owned by four landlords, including two from out-of-state. Working with
DB&T's community development corporation, the Housing Department assembled the
units over a two-year period, with the bank acquiring four and the City purchasing two.
Prices ranged from $12,000 to $38,000. The first City-owned property, at 1777
Washington, is now ready for sale.
Housing & Community Development Department Director Alvin Nash recommends the
City Council set a public hearing for August 20, 2012, on the sale of 1777 Washington
Street to Alberto Luna for the appraised value of $85,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/7AAh kt1&1
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing & Community Development Department Director
THE CITY OF
DUI5jJi
Masterpiece on the Mississippi
Dubuque
kiterig
AA- America City
IIIII'
2007
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Department Director
SUBJECT: Sale of Property at 1777 Washington Street
DATE: July 30, 2012
Introduction
The purpose of this memorandum is to request City Council approval of the attached
resolution, setting a public hearing for the purpose of disposing of City -owned real
estate at 1777 Washington Street
Background
As part of the Washington Neighborhood revitalization strategy, the `Historic
Washington Row Houses,' located at 1765 -1795 Washington Street, were targeted for
acquisition, in 2008 Six rental units (a seventh is owner - occupied and was not
acquired) were owned by four landlords, including two from out -of -state Five of these
were long -term problem properties, marked by numerous police calls for tenant
disturbances and indifferent property management The end unit (1795) was destroyed
due to a fire in 2008 Working with DB &T's community development corporation, the
Housing Department assembled the units over a two -year period, with the bank
acquiring four and the City purchasing two Prices ranged from $12 000 to $38 000
These units, dating from the 1880's and originally built under the ownership of the
Dubuque Furniture and Burial Case Company, mimic the architectural style and use of
materials in the Casket Company building (now Washington Court) located across
Washington Street The Housing Department's restoration has remained faithful to both
exterior and interior historic integrity, to the extent possible
Doug Horsfall (developer of the White Street condominium project) was selected as
general contractor for the project. HEART Program crews were used for some of the
labor. The Public Works, Engineering and Water Departments assisted to install new
individual sanitary sewer and water services to the units, and a storm water catch basin
at the rear of the property. A $240 000 I -Jobs award was received from the Iowa
Finance Authority to help subsidize costs. Funds from the Lead Hazard Program, in the
amount of $75 000, were contributed. In total, approximately $784 000 was expended,
which includes funds to restore the exterior of the owner - occupied unit.
Improvements to the buildings included new utility services, membrane roofs, lead paint
and asbestos removal, furnaces, water heaters and central air conditioning, all new
plumbing and fixtures, and custom -made wood windows and doors. Recycled City
street pavers were installed in the rear courtyard, made secure with iron privacy fencing.
A derelict house next door was purchased and deconstructed; a parking area for project
residents will be constructed later this summer. The completed project was recognized
with a Ken Kringle historic preservation award in May 2012.
To date, two properties owned by DB &T Community Corp have been sold and one is
pending.
Discussion
The first City -owned property, at 1777 Washington, is now ready for sale. An offer has
been accepted from Alberto Luna, in the amount of $85 000, according to the value
established by an appraisal. The buyer will receive the Washington Neighborhood
financing package, including a $15 000 combination forgivable and deferred - payment
loan; and a $25 000 City second mortgage. The first mortgage will be provided by a
private lender. All properties must be sold to income - qualifying buyers (earning less
than 80% area median income) according to the terms of the I -Jobs and CDBG funding.
Action Step
The action requested of the City Council is to approve the attached resolution, setting a
public hearing for the purpose of receiving comments on the proposed sale of the
property.
RESOLUTION NO. 208 -12
A RESOLUTION OF INTENTION TO DISPOSE OF CITY -OWNED PROPERTY,
SPECIFICALLY, LOT 2 OF LOT 2 OF THE EAST 1/2 OF LOT 90; AND LOT 1 OF LOT
1 OF THE EAST 1/2 OF LOT 91; IN EAST DUBUQUE ADDITION, IN THE CITY OF
DUBUQUE, IOWA, ACCORDING TO THE RECORDED PLAT THEREOF — 1777
WASHINGTON STREET
Whereas, the City of Dubuque, implementing the Washington Neighborhood
Revitalization Strategy, has acquired certain properties for the purpose of their
rehabilitation and re -sale to income - qualifying owner - occupants; and
Whereas, the Historic Washington Row Houses were acquired for this purpose;
and
Whereas, by accepting an offer to purchase for this property the City's objective
for providing first -time home ownership to a qualifying buyer can be achieved.
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 2 of Lot 2 of the East 1/2 of Lot 90; and Lot 1 of Lot 1 of the East 1/2 of Lot 91;
in East Dubuque Addition.
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in
the above - described real property to Alberto Luna, for the sum of $85 000.
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 for a
public hearing on the City's intent to dispose of the above - described property, to be held
on August 20, 2012, at 6:30 pm at the Federal Building, 350 W 6" Street, Dubuque,
Iowa.
PASSED, APPROVED AND ADOPTED this 6th day of Augus 2012.
Attest:
Pl:e'da VA
Ke Firnstahl, CM; ity Clerk
0
Roy D. Buol, Mayor
RESOLUTION
NO.208 -12
A RESOLUTION OF
INTENTION TO
DISPOSE OF CITY -
OWNED PROPERTY,
SPECIFICALLY, LOT 2
OF LOT 2 OF THE
EAST Vs OF LOT 90;
AND LOT 1 OF LOT 1
OF THE EAST Vs OF
LOT 91; IN EAST
DUBUQUE ADDITION,
IN THE CITY OF
DUBUQUE, IOWA,
ACCORDING TO THE
RECORDED PLAT
THEREOF -1777 WASH-
INGTON STREET
Whereas, the City of
Dubuque, implement-
ing the Washington
Neighborhood Revital-
ization Strategy, has
acquired certain pro-
perties for the purpose
of their rehabilitation
and re -sale to income -
qualifying:, owner -
occupants; and
Whereas, the Historic
Washington Row
Houses were acquired
for this purpose; and
Whereas, by ac-
cepting an offer to
purchase for this
property the City's
objective for providing
first -time home owner-
ship to a qualifying
buyer can be achieved.
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 2 of Lot 2 of the
East 'h of Lot 90; and
Lot 1 of Lot 1 of the
East '/z of Lot 91; in
East Dubuque Addition.
Section 2. That the
City of "Dubuque, Iowa,
proposes to dispose of
its interest in the
above - described real
property to Alberto
Luna, for the sum of
$85,000.
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 for
a public hearing on the
City's intent to dispose
of the above - described
property, to be held on
August 20, 2012, at 6:30
pm at the Federal
Building, 350 W 6th
Street, Dubuque, Iowa.
Passed, approved and
adopted this 6th day of
August, 2012.
Roy D. Buol, Mayor
Attest: Kevin S.
Firnstahl, City Clerk
it 8/10
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: August 10, 2012, and for which the charge is $25.19.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this i,1 day of t , 20 /d. .
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154885 i