Purchase of 1318 Jackson Street
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Property in Washington Neighborhood
DATE: October 26, 2012
Housing and Community Development Department Director Alvin Nash recommends
City Council approval to purchase a house located at 1318 Jackson Street from the
Marcellus J. Pottebaum Trust for the appraised value of $30,000. This property will be
rehabbed and resold to a qualified homebuyer.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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 and Community Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing and Community Development Director
SUBJECT: Purchase of Property in Washington Neighborhood
DATE: October 10, 2012
Dubuque
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Introduction
The purpose of this memorandum is to request City Council authorization to purchase a
house located at 1318 Jackson Street for the purpose of rehabbing and reselling to a
qualified homebuyer.
Background
As part of the Neighborhood Stabilization Program (NSP), the City is to acquire and
rehab vacant or abandoned properties. The City was contacted by the owner's estate
attorney to sell the property to the City. An as- is- appraisal was conducted to establish a
purchase price. The property appraised at $30,000. Due to extensive rehabilitation, the
property was not previously marketed. The property has been vacant since July 2011,
when the owner was moved to an assisted - living facility and has since passed away.
There have been no outstanding code enforcements against this property.
Discussion
This will be the ninth property using NSP funds. The property is in substandard
condition and is a candidate for rehabilitation under the NSP Program. The property is
owned by Marcellus J. Pottebaum Trust. To support and facilitate this rehab and re-
marketing effort for the Washington Neighborhood, it is recommended that we purchase
this property. It is a blighting influence on the block and will hinder our efforts to
rehabilitated homes to new purchaser families. We intend to similarly rehab this home
and sell it as part of this homeownership initiative. Preliminary cost estimate for total
rehabilitation, including lead paint hazard abatement, is $105,000. Major changes to
the property would be reconfiguration of interior rooms from duplex to single family;
demolish and reconstruct front and back porch, removal of siding and replacement of
windows with new wood and vinyl. Staff expects a sale price after rehab to be
approximately $85- 90,000. As a requirement of the NSP Program, the sale price can
only be appraised value or actual rehab costs, whichever is lesser of the two. We
realize that there will be loss, however, the property will be sold to an income qualifying
household, putting ownership back into the neighborhood and will put the property back
on the tax roll.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing the purchase of property located at 1318 Jackson Street, from the Marcellus
J. Pottebaum Trust, for $30,000.
KLN
2
RESOLUTION NO. 294 -12
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 1318 JACKSON STREET, IN THE CITY OF DUBUQUE
WHEREAS, the City of Dubuque intends to acquire certain properties
located in the Washington Neighborhood Revitalization Area for the purpose of
rehabbing blighted structures; and
WHEREAS, a purchase agreement has been finalized with the owner.
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:
North 1/2 Lot 56 East Dubuque Addition in the City of•Dubuque,
Iowa according to the recorded plats thereof
At the cost of Thirty Thousand Dollars ($30,000.00).
Section 2. That the City of Dubuque be and is hereby authorized 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 he 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 the Resolution.
Section 4. That the City Clerk be and he 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 5th •ay of November, 2012.
Roy D. ol, Mayor
Attest:
K= i S. Firnsta I, bit erk