Property 346 E. 19th Purchase
D'G~~E
~Y4-~
MEMORANDUM
December 14, 2006
TO: The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Purchase of House for Demolition in Washington Neighborhood
346 East 19th Street
Housing and Community Development Department Director David Harris is
recommending City Council approval to purchase a house located at 346 East 19th
Street for the purpose of demolition.
As part of the strategy for revitalizing the Washington area, the City has considered
demolition of selected properties. Some houses would be acquired for reason of their
derelict condition and removed. The strategy includes contacting adjacent owners to
determine their interest in acquiring all or part of the resulting vacated lot, in order to
determine whether demolition is a feasible option for the City.
The property at 346 East 19th has appraised at $86,000. The owner has offered to sell
for the balance due on the mortgage, or $58,000. It is estimated that asbestos removal
and demolition would total an additional $11,000, for a final cost of $69,000 to the City.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(lJ ~1/1tJ--
Micllael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
OO~~E
~ok~
MEMORANDUM
11 December 06
To: Michael ~~ Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Purchase of house for demolition in Washington Neighborhood
Introduction
The purpose of this memorandum is to request City Council authorization to purchase a
house located at 346 East 19th Street for the purpose of demolition.
Background
As part of the strategy for revitalizing the Washington area, we have considered
demolition of selected properties. Housing staff are currently assessing this approach
for five identified properties. Some houses would be acquired for reason of their derelict
condition and removed. Our strategy includes contacting adjacent owners to determine
their interest in acquiring all or part of the resulting vacated lot, in order to determine
whether demolition is a feasible option for the City.
Other properties would be acquired for demolition for reason of "over-density," meaning
that they are placed so close to adjacent structures that no yard space (or off-street
parking) is possible. Particularly on the 'cross streets' in the Washington Neighborhood
- 11th through 20th - we see an opportunity to remove some of these structures and
open up yards and parking spaces, thus making the neighborhood more 'livable' and
the marketing of homes for new investment more feasible.
This situation is unique to corner properties, as this 'over-building' occurs only at the
cross streets. Homes in the middle of the block have full back yards, usually with
garages, accessed by rear alleys. A number of corner houses, however, have the
adjacent structure located immediately behind them, creating this highly-dense built
environment.
However, this strategy - for acquisition and clearance -- can be costly, particularly when
homes proposed for demolition have market value.
Discussion
The first home proposed for acquisition and demolition is located at 346 East 19th
Street. It is vacant and in need of significant rehabilitation, estimated by our rehab staff
at about $57 000. It is, however, marginally habitable, and not a candidate for
demolition because of derelict condition.
This house is sited, essentially, in the 'back yard' of the adjacent, comer house, located
at 1896 Washington Street. For this reason, there is no yard space for either property;
there is no off-street parking. The comer home has been purchased by Dubuque Bank
and Trust's community development corporation, one of four properties they have
acquired in cooperation with the City's Washington: Revitalize! initiative. The DB&T
property is a substantial four-bedroom dwelling and could be restored to prominence.
Over the past six months, however, we have found no market interest. It does not
'show' well, particularly due to the lack of private yard space.
The property at 346 East 19th has appraised at $86 000. The owner has offered to sell
for the balance due on the mortgage, or $58 000. It is estimated that asbestos removal
and demolition would total an additional $11 000, for a final cost of $69000 to the City.
General Funds would be made available for this purpose, from Engineering's
Replacement Gunite/Rock Storm Sewer CIP No. 720-1363. The cleared lot would then
be made available for sale to DB& T, at an undetermined price. Creating a full lot for the
home at 1896 Washington would then increase opportunity for resale to an owner
occupant willing to reinvest in the neighborhood.
Recommendation
It is recommended that the Council approve the acquisition of this property. This
recommendation, however, is made with recognition of both the public expense and the
fact that we are removing a potentially habitable dwelling from the housing inventory. It
is recommended because, on balance, the neighborhood can be better-served through
reduction of density, in selected cases. This provides opportunity for enlarged yard
spaces and/or off-street parking, in the interest of better marketability of housing for
owner-occupant families.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing the purchase of property located at 346 East 19th Street, from the owner,
Lagari M and Penny A Nard, for $58 000.
RESOLUTION NO. 611-06
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 346 E. 19th STREET, IN THE CITY OF DUBUQUE
WHEREAS, the City of Dubuque intends to acquire certain properties
located in the Washington Neighborhood Revitalization Area; 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'/ of Lot 97, except the West 57'6" thereof, in East Dubuque,
in the City of Dubuque, Iowa according to the recorded plats thereof
At the cost of Fifty-eight thousand dollars ($58 000).
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 she 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 she 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 18th day of December, 2006.
Roy D. uol, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk