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Sale of Property at 2521 Stafford Street_Initiate Copyright 2014 City of Dubuque Items to be set for Public Hearing # 2. ITEM TITLE: Sale of Property at 2521 Stafford Street SUMMARY: City Manager recommending that a public hearing be set for May 18, 2015, for the purpose of disposing of City-owned real estate at 2521 Stafford Street to Sheonna D. Bond RESOLUTION of Intention to dispose of City-owned property, specifically, Lot Two (2) of Lot One (1) and the East One-Half(E Y2) of Lot Four (4) of Lot Two (2) both in Geiger's Subdivision, in the City of Dubuque, Iowa — 2521 Stafford Street SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for 5/18/15 ATTACHMENTS: Description Type ❑ Sale of 2521 Stafford-MVM Memo City Manager Memo ❑ Staff memo Staff Memo ❑ Resolution Staff Memo ❑ Notice Staff Memo THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of City-Owned Property at 2521 Stafford Street DATE: April 28, 2015 Housing & Community Development Department Director Alvin Nash recommends the City Council set a public hearing for May 18, 2015, for the purpose of disposing of City- owned real estate at 2521 Stafford Street to Sheonna D. Bond for the appraised value of$130,000. The buyer will receive an incentives package to assist with downpayment, closing costs and other related costs in the amount of $25,000 as follows: $5,000 5-year forgivable loan; $10,000 due on sale of property and $10,000 $42/mo. 0% interest. Financing to Sheonna Bond will be provided through a first mortgage from Ruhl Mortgage. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael 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 THE CITY OF Dubuque AII11-America CiI.ty UB E1 Masterpiece on the Mississippi 2007-2012-2013 TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Sale of City-owned property at 2521 Stafford Street DATE: April 20, 2015 Introduction The purpose of this memorandum is to request the City Council's approval of the attached resolution, setting a Public Hearing for the purpose of disposing of City- owned real property located at 2521 Stafford Street. Background In March of 2003, the City Council authorized the Housing Department to purchase at Sherriff's Sale the above listed property due to a foreclosure action by the principal lien hold. At that time, the Housing Department had an existing rehab loan on that property from 1996, with a $24,000 balance remaining on the loan. The property was purchased for $47,500. Shortly after that time, a fire destroyed a single-family residence on Madison Street, displacing a single parent with five young children. The Housing Department sold the property to this family in the amount of $71,500 in order to recoup the City's investment. This family once again fell into bad times, which eventually led to her abandoning the property in 2007. A Warranty Deed was finally signed returning the property to the City in 2009. There was much needed work to be completed to prepare this property once again for homeownership. Clean up began in 2010, when broken pipes were discovered through the whole property. There was also lead based paint on the windows. We were able to utilize the Lead Program trying to keep costs down. This project became a total rehab project with final costs being approximately $108,700. The project was finally completed in 2014 and listed with a local realtor. Staff continued to market and showed the property whenever an interested person inquired. The property was re-listed with another realtor in March 2015, after nothing transpired from the previous one. We now have an offer to purchase. Numerous programs funds were utilized to renovate the property and prepare it for re-sale, they include: Program/Funds Amount CDBG Purchase/Rehab/Resale $36,767 General DRA Distribution Purchase/Rehab/Resale $50,000 Residential Rehab Program (RRP) $21 ,133 Problem Property Management 800 Total amount invested in property 108,700 Lead Program funds in the amount of$7,800 was also invested. Those funds do not have to be recaptured. Discussion An offer has been made by Sheonna D. Bond, to purchase the property at 2521 Stafford Street for $130,000, in accordance with the value established by an independent appraiser. The buyers will receive an incentives package to assist with downpayment, closing costs and other related costs in the amount of$25,000 as follows: $5,000 5-year forgivable loan; $10,000 due on sale of property and $10,000 $42/mo. 0% interest. Financing to Sheonna Bond will be provided through a first mortgage from Ruhl Mortgage. Action Step The action requested of the City Council is to approve the attached resolution, declaring the City's intent to dispose of the property and set the date for the public hearing to receive comments on the proposed sale. KLN RESOLUTION NO. 151-15 A RESOLUTION OF INTENTION TO DISPOSE OF CITY -OWNED PROPERTY, SPECIFICALLY, LOT TWO (2) OF LOT ONE (1) AND THE EAST ONE-HALF (E 1/2) OF LOT FOUR (4) OF LOT TWO (2) BOTH IN GEIGER'S SUBDIVISION, IN THE CITY OF DUBUQUE, IOWA — 2521 STAFFORD STREET WHEREAS, the City of Dubuque has obtained certain real property in connection with the Purchase/Rehab/Resale Project; and for purpose of its acquisition, rehabilitation and re -sale for owner -occupied housing; and WHEREAS, the City received an offer to purchase this property from Sheonna D. Bond; WHEREAS, by accepting the selected offer the City's objectives of providing homeownership to an income qualified buyers and rehabilitation of a vacated home can be realized; 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 Two (2) of Lot One (1) and the East One -Half (E '/2) of Lot Four (4) of Lot Two (2) both in Geiger's Subdivision, in the City of Dubuque, Iowa Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above described real estate to Sheonna D. Bond for the sum of $130,000; 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 of a public hearing g on the City's intent to dispose of the foregoing -described Property, to be held on the 18t day of May, 2015, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PASSED, APPROVED AND ADOPTED this 4th day of May, 2015. Roy D Buol, Mayor Attest: 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 day of May, 2015, at 6:30 p.m. in the Historic Federal Building, 350 West Sixth Street, second floor, Dubuque, Iowa, at which meeting the City Council proposes to dispose of an interest in the following described real property by sale to Sheonna D. Bond: Lot Two (2) of Lot One (1) and the East One-Half (E Y2) of Lot Four (4) of Lot Two (2) both in Geiger's Subdivision, in the City of Dubuque, Iowa At the meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. Written comments regarding the above public hearing may be submitted to the City Clerk's Office, City Hall, 50 W. 13th Street, on or before said time of public hearing. Copies of supporting documents for the public hearings are on file in the City Clerk's Office, and may be viewed during normal working hours. Any visual or hearing impaired persons needing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or TTY (563) 556-9948 at least 48 hours prior to the meeting. Dated this (Day)th day of (Month), (Year). (date of publication) Kevin S. Firnstahl, CMC City Clerk 1 t XX/XX (clerk use) The Resolution on Intent to Dispose is inserted here for the newspaper.