Sale of Property_1787 Washington Street (row house)Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of Property at 1787 Washington Street
DATE: October 8, 2013
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
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 second City -owned property, at 1787
Washington, is now ready for sale.
Housing & Community Development Department Director Alvin Nash recommends the
City Council set a public hearing for November 4, 2013, on the sale of 1787 Washington
Street to Danika M. Carstens for the appraised value of $85,000.
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 & Community Development Department Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
SUBJECT: Sale of Property at 1787 Washington Street
DATE: October 4, 2013
Dubuque
bitell
All- America City
1 I
2007 • 2012 • 2013
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 1787 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 has been constructed and is being utilized. The completed project was
recognized with a Ken Kringle historic preservation award in May 2012 and the 2013
Audrey Nelson Community Development Achievement Certificate.
To date, three properties owned by DB &T Community Corp have been sold and one is
remaining.
Discussion
The second City -owned property, at 1787 Washington, is now ready for sale. An offer
has been accepted from Danika M. Carstens 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. 307 -13
A RESOLUTION OF INTENTION TO DISPOSE OF CITY -OWNED PROPERTY,
SPECIFICALLY, Lot 1 OF LOT 2 OF THE EAST 1/2 OF LOT 91 IN EAST DUBUQUE
ADDITION, IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE RECORDED
PLAT THEREOF —1787 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 1 of Lot 2 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 Danika M. Carstens 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 November 4, 2013, at 6:30 p.m. at the Federal Building, 350 West 6th Street,
Dubuque, Iowa.
Passed, approved and adopted this 21st day of October, 2013.
Attest:
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 4th day of No-
vember, at 6:30 p.m. in
, the Historic Federal
Building,
Sixth Street, Dubuque,
Iowa, at which meeting
the City Council pro-
1 poses to dispose of an
interest In the follow-
ing described real
property to Danika M.
Carstens.
Lot 1 of Lot 2 of the
East 1/2 of Lot 91; in
East Dubuque Addition. i
(1787 Washington
Street)
At the meeting, the
City Council will re-
ceive oral and Written
comments from any
resident or property
owner of said City to
the above action. Writ-
ten comments regard-
ing the above public
hearing may be sub-
mitted to the City
Clerk's Office On or be-
fore said time of public
hearing. •
Copies of supporting
, documents forte pub-
lic hearings are on file .
in the City Clerk's -Of-
fice, 50 W. 13th Street:
and • may be viewed
during normal working
hours.
Any visual or hearing
impaired - -persons
needing special assis-
tance or persons with
special accessibility
needs should contact
I the at (563 0 Office
) 589 -41 0 or
TTY. (563) 690 -6678 at
least 48 hours prior to
the meeting.
Whereas, the City of
Dubuque, implement-
ing the Washington
Neighborhood Revitali-
zation Strategy, has
acquired certain prop -
erties for the purpose
of their' rehabilitation
and re -sale to income
qualifying owner -occu-
pants; and
Whereas, the Historic
Washington Row Hous-
es were acquired fori
this purpose; and •
Whereas, by accept-
ing an offer to pur-
chase 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, 10-
i WA:
Section 1. That the
City of Dubuque, Iowa,
intends to dispose of
zits interest in the fol-
lowing legally-des-
, , cribed property:
tot 1 of Lot 2 of the
East 1/2 of Lot 91; in
East Dubuque Addition.
Section 2. That the
City of Dubuque, Iowa,
propase,S to dispose of
its interest in the
above- described real
property to Danika M.
i, Carstens for the sum of
$85,000.
Section 3. That the
City Clerk Is hereby au-
thorized and directed
to cause this Resolu-
tion and a notice to be
published as prescri-
bed by Iowa Code Sec - ,
tion 364.7 for a public
hearing on the City's
Intent to dispose of the
above - described prop-
erty, to be held on No-
vember 4, 2013, at 6:30
B ildin9 350eWest 6th
Dated this 25th day of—
October, 2013.
Kevin S. Firnstahl, •
CMC, City Clerk
RESOLUTION .
NO. 307-13
A RESOLUTION OF
INTENTION TO DIS-
POSE OF CITY -
OWNED PROPERTY,
SPECIFICALLY, Lot 1
OF LOT 2 OF THE
• EAST 1/2 OF LOT 91
IN EAST DUBUQUE
ADDITION, IN THE
CITY OF DUBUQUE,
I IOWA, ACCORDING
TO THE RECORDED
. PLAT THEREOF - 1787
WASHINGTON STREET
owa.
Street, Dubuque, eo and
Passed, app
adopted this 21st day
of October, 2013.
Roy D. Buol, Mayor
Attest: Kevin S.
Firnstahl, City Clerk
It 10125
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: October 25, 2013, and for which the charge is $41.76.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this c799 day of &e,4_114) , 20 /3 .
Notary Public in and for
I
I
ubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154855
a
r• ny