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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