Property 141 E. 11th Purchase
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MEMORANDUM
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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
141 East 11th
Housing and Community Development Department Director David Harris is
recommending City Council approval to purchase a house located at 141 East 11111
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 has an assessed value of $33,000. The owner has agreed to sell for
$20,000. It is estimated that asbestos removal and demolition would total an additional
$11,000, for a final cost to the City of $31 ,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
CITY OF DUBUQUE, IOWA
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 141 East 11th 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. Particularl~ on the 'cross streets' in the
Washington Neighborhood - 11th through 20 - 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 possible.
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.
Discussion
The second house proposed for acquisition and demolition is located at 141 East
11th Street. It fits the definition of both derelict and 'over-built.' It is vacant and
has been repossessed by the lender. Most of the windows are boarded. An
inspection revealed a significant mold problem and the need for a complete, 'gut'
rehabilitation. It has been a problem property for a number of years, always
presenting an unmaintained appearance and a source of neighborhood
complaints.
The property has an assessed value of $33 000. The owner has agreed to sell
for $20 000. It is estimated that asbestos removal and demolition would total an
additional $11 000, for a final cost to the City of $31 000. General Funds would
be made available for this purpose, from Engineering's Replacement Gunitel
Rock Storm Sewer CIP No. 720-1363.
The house is located in the 'back yard' of the corner multi-unit structure on White
Street, across from the new Prescott School. This apartment building is listed for
sale, so no conversation has been held regarding potential resale of the City's
cleared lot for additional yard space or parking. A potential use, however, would
be for off-site parking for Prescott staff. It could also be resold to the owner of
the adjacent apartment building - on the north side- for additional off-street
parking. It is also possible that sale to Spahn and Rose, located across the alley,
for staff parking could be a possibility.
Recommendation
It is recommended that the Council approve the attached resolution, authorizing
the purchase of this property. This action will remove a blighted property with
little feasibility of repair, and provide potential parking opportunity to adjacent
apartment or business owners.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing the purchase of property located at 141 East 11th Street, from the
owner, Nationwide Advantage Mortgage Company, flk/a Allied Group Mortgage
Company, for $20 000.
RESOLUTION NO. 612-06
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 141 E. 11th 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:
Lot 1 of Lot 2 and Lot 2 of Lot 2 of the South 1/5 of City Lot 480 in the City
of Dubuque, Iowa, according to the United States Commissioners' Map
and the recopied plats thereof, subject to easements of record
At the cost of Twenty thousand dollars ($20 000).
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 18"' day of December, 2006.
Roy D. ol, Mayor
Attest:
Jeanne Schneider, CMC, City Clerk