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Sale of Property_317-319 E. 22nd StreetMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of Property at 317 -319 East 22nd Street DATE: November 12, 2013 Dubuque band AI- America City 1 2007 • 2012 • 2013 The City purchased eight properties for the Bee Branch project in the 2200 -2300 blocks of Washington Street, due to the need to take a portion of the rear yards for the realigned right -of -way. The houses are each being fully renovated, in preparation for their re -sale to income - qualifying homebuyer families. The seventh of these, located at 317 -319 East 22nd Street, has been completed and an offer to purchase has been received. The property was renovated at a cost of $126,267. Development of this property was funded as part of the Bee Branch Creek Restoration Program, the Lead Paint Hazard Reduction Program and Neighborhood Stabilization Program Funds. This property will be an owner - occupied duplex. Housing and Community Development Department Director Alvin Nash recommends the City Council authorize the sale of property located at 317 -319 East 22nd Street to Danielle L. Minnick for the appraised value of $95,000. As a requirement of the Neighborhood Stabilization Program, the purchase price can only be the appraised value or actual rehab costs, whichever is the lesser of the two. All properties must be sold to income - qualifying buyers (earning less than 80% area median income) according to the terms of the Neighborhood Stabilization Program and the Lead Paint Hazard Reduction Program. Financing to Danielle L. Minnick will be provided through a first mortgage from Dupaco Community Credit Union and Neighborhood Stabilization Program funds. 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 Department Director 2 Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Director SUBJECT: Sale of Property at 317 -319 East 22nd Street DATE: November 5, 2013 Dubuque ktratd All - America City '1 111! 2012 Introduction The purpose of this memorandum is to request approval of the attached resolution authorizing sale of a home at 317 -319 East 22nd Street to Danielle L. Minnick. Background The City purchased eight properties for the Bee Branch project in the 2200 -2300 blocks of Washington Street, due to the need to take a portion of the rear yards for the realigned right -of -way. The houses are each being fully renovated, in preparation for their re -sale to income - qualifying homebuyer families. The seventh of these, located at 317 -319 East 22nd Street, has been completed and an offer to purchase has been received. $126,267 was utilized to renovate this property and prepare it for resale Development of this property was funded as part of the Bee Branch Creek Restoration Program, the Lead Paint Hazard Reduction Program and Neighborhood Stabilization Program funds (NSP). The difference between the rehab costs and the appraised value is a loss of $31,267. However, $26,030 was a Lead Paint Hazard Grant, therefore, making the loss only $5,237. This property will be an owner - occupied duplex. Discussion An offer has been made by Danielle L. Minnick to purchase the property at 317 -319 East 22nd Street for $95,000. The appraised value is $95,000. As a requirement of the NSP Program, the purchase price can only be the appraised value or actual rehab costs, whichever is lesser of the two. All properties must be sold to income - qualifying buyers (earning less than 80% area median income) according to the terms of NSP and the Lead Paint Hazard Reduction Program. Financing to Danielle L. Minnick will be provided through a first mortgage from Dupaco Community Credit Union and NSP funds. By action of the City Council at its meeting held on November 4, 2013, Resolution No. 315 -13 approved the setting of a public hearing to be held for the disposal of property at 317 -319 East 22nd Street. Action Step The action requested of the City Council is to approve the attached resolution authorizing the sale of property located at 317 -319 East 22nd Street to Danielle L. Minnick. 2 Preparer: Kris Neven, City of Dubuque Housing Department, 350 W. 6th Street, Suite 312, Dubuque, IA 52001 (563) 690 -6094 Return to: Kevin S. Firnstahl, City Clerk, 50 W. 13th Street, Dubuque IA 52001, 563 - 589 -4121 RESOLUTION NO. 333 -13 A RESOLUTION APPROVING THE SALE OF REAL ESTATE SPECIFICALLY 317- 319 EAST 22ND STREET WHEREAS, pursuant to a notice, duly published in the Telegraph Herald newspaper, in the City Council of Dubuque, Iowa, met on November 4, 2013, in the Dubuque Historic Federal Building, 350 West 6th Street, Dubuque, Iowa to consider the proposal to dispose of City -owned real estate located at 317 -319 East 22nd Street: Lot 1 -3 Kemp's Subdivision, in the City of Dubuque, County of Dubuque, Iowa; and WHEREAS, a qualifying home buyer, Danielle L. Minnick, has signed an offer to purchase and has obtained financing from a local lender; and WHEREAS, the City Council of the City of Dubuque, Iowa has overruled any and all objections, oral and written, to the proposal to dispose of the interest of the City of Dubuque, Iowa, in the herein and above -named real estate to the above -named grantee. 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 sale of the following legally - described property: Lot 1 -3 Kemp's Subdivision, in the City of Dubuque, County of Dubuque, Iowa, according to the recorded plat thereof, at the cost of Ninety -Five Thousand Dollars ($95,000). Section 2. That the City of Dubuque be and is hereby authorized to provide a Warranty Deed to the buyer, conveying the City's interest to Danielle L. Minnick for the herein - described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Warranty 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 is hereby authorized and directed to forward a copy of this Resolution to the Dubuque Count Assessor and the Dubuque County Auditor. Passed, approved and adopted this 18th day of November, 2013. Attest: fi Key' S. Firnstahl, City Jerk 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 18th of o- vember, 2013,' at 6:30 p.m. in the Historic Federal Building, 350 West 6th Street, Dubu- que, Iowa, at which meeting the City Coun- cil proposes to dispose of an interest by sale in the following described real property to Danielle L. Minnick: Lot 1 -3 Kemp's Subdi- vision 317 -319 East 22nd Street, in the City of Dubuque, County of Dubuque, Iowa At the meeting, City Council will ceive oral and written comments from any resident or property owner of said City to the above action. Writ -'I 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 docums for the ub- lic hearings are on p file in the 0 City W Clerk's Of fice,?5. 13th Street,' and may be viewed dur ng normal working hours. Any visual or hearing impaired persons needing special assis- tance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589 -4100 or TTY (563) 690 -6678 at leathe st m 48e eetin hourg. s prior to Dated this 8th day of November, 2013. Kevin S. Firnstahl, CMC City Clerk It 11/8 RESOLUTION NO, 315-13 A RESOLUTION OF INTENTION TO DIS- POSE OF ' CITY - ONED PROPERTY, SPECIFICALLY, LOT 1- 3 KEMP'S SUBDIVI- SION 317 -319 EAST 22ND STREET, IN THE CITY OF DUBUQUE, COUNTY OF DUBU- QUE, IOWA, ACCORD- ING TO THE RECORD- ED PLAT THEREOF, 317 -319 EAST 22ND STREET WHEREAS, the City of Dubuque has obtained certain real property in connection with the Bee Branch Creek Re -' alignment Project; and for purpose of itsireha- bilitation and re -sale for owner- occupied housing; and WHEREAS, the City re- ceived an offer to pur- chase this property from _ Danielle ick; " WHEREAS, such pur- pose supports the Neighborhood- Stabili- zation Program and Washington Neighbor -' hood Revitalization strategy as approved by nd the City Council a WHEREAS, by accept- ing the selected offer the City's objectives of providing homeowner- ship to an ' income qualified buyers and rehabilitation of a va- cated home can be re- alized; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IO- WA: Section 1. That the City of Dubuque,, Iowa, intends to dispose of its interest in the fol- lowing legally - described property: Lot 1 -3 Kemp's Subdi- vision 317 -319 East 22nd Street, in the City of Dubuque, County of Dubuque, Iowa Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above 'describeDd real estate to anielle L. Minnick for the sum of $95,000. 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 of a public hearing on the City's intent to dispose of the foregoing-described Property, to be held on the 18th day of Novem- ber, 2013, at i 6:30 o'clock'p.m. at the His- toric Federal Building, 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 4th day of November, 2013. /s /Roy 0/1(v Mayor Attest: /s /Kevin S. Firnstahl, CMC, City Clerk lt11 /8` 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: November 08, 2013, and for which the charge is $46.62. Subscribed to before me, a otary Public i and for Dubuque County, Iowa, this day of , 20 / Notary Public in and for Dubuque County, Iowa. a'W+ 3i�;® h4�� ,2';^+tiyJYnlMtJ+•J...e +ogy�v. MARY K. HV ST R:IMEYER tifnl l fj Noitne 15,M5 Prepared by: Maureen A. Quann 300 Main Street, Suite 330, Dubuque IA 52001 563 589 -4381 Return to: Robert E. Sabers, 3003 Asbury Road, Suite 1, Dubuque IA 52003 563 556 -3266 Tax Statement to: Danielle L. Minnick 6640 S. Wellington Drive Dubuque, Iowa 52003 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL AND CONVEY unto Danika M. Carstens, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 1 of Lot 3, "KEMPS' SUBDIVISION" in the City of Dubuque, Iowa, according to the recorded Plat thereof This Deed is exempt from transfer tax pursuant to Iowa Code section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 333 -13 of the City Council of the City of Dubuque adopted the 18th day of November, 2013, the terms and conditions thereof, if any, having been fulfilled. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated this 2013 at Dubuque, Iowa. Attest: By: K: in S. Firn tahl, CI y Clerk STATE OF IOWA COUNTY OF DUBUQUE CITY OF DUBUQUE IOWA By: SS Roy Buol, Mayor On this / 0 day of � ;' i ��i� , 20 /3, before me a Notary Public in and for said County, personally appeared Roy D. Buol and Kevin S. Firnstahl to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public in an,d 'br Dubuque County, Iowa PAMELA J. McCARRON Commission Number 772419 My Comm. Exp. I- 5.-20is