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HomeMy WebLinkAbout592 RESOLUTION NO. 20-592 RESOLUTION APPROVING BORROWING$8,205 FOR PURCHASE OF THE PROPERTY AT 1126 GRAND AVENUE,AND $40,000 FOR ASBESTOS REMOVAL AND DEMOLITION FROM THE CITY-WIDE AFFORDABLE HOUSING PROGRAM FUND AND THEN RE-SELLING THE PROPERTY TO REIMBURSE THE EXPENDITURES ADVANCED FROM THE FUND FOR THE CITY OF AMES,IOWA WHEREAS,the property at 1126 Grand Avenue was declared a Dangerous Building by the City's Inspection staff on January 10, 2020, under Chapter 5 of the Ames Municipal Code; and, WHEREAS, in September 2019, a routine inspection was conducted by a City Rental Housing Inspector and found the property to be a nuisance to the public; and the owners were notified of the City's intent to open a dangerous building case on the structure in October 2019;and, WHEREAS, the property owners were given the opportunity to settle any matters with the structure before it was posted as a dangerous building; and, WHEREAS, since that time, the Building Official had spent several months working with the property owner to take the necessary corrective actions that would need to occur in order to the property to be taken off the dangerous building status; and, WHEREAS, the property continues to be a dangerous building and may not be occupied; during this timeframe the property taxes for several years were unpaid by the property owner; and, WHEREAS, the property was sold at a tax sale and the purchaser of the property is entitled to a deed to the property,but is not interested in owning or improving the property and approached the City to purchase the rights it acquired in the property through the tax sale; and, WHEREAS, the Housing Coordinator was consulted to determine if CDBG Affordable Housing funds could be utilized for this situation, and it was determined that the property was located in an Urban Core Residential Medium Density Zone (UCRM); and, WHEREAS,the UCRM is intended to preserve the character of one-and two-family homes near the downtown area and is an area of mainly one and two-family homes mixed with apartment buildings); and, WHEREAS, since the structure is in a very deteriorated and unsightly condition, it was determined that the property could meet the criteria for purchase under the goal of the Acquisition/Reuse Affordable Housing Program; and, WHEREAS,the Housing Coordinator worked with the Legal Department and the party that purchased the property at the tax sale to negotiate the price and terms and conditions of the sale to the property; and, WHEREAS, negotiations with the holder of the tax certificate have resulted in an agreed price of$6,000, plus current taxes due and unpaid and closing costs estimated at an additional $2,205, for a total price of approximately$8,205; and, WHEREAS,in order to finalize the negotiations,staff is asking the City Council to authorize the Housing Coordinator to proceed with and execute a Purchase Agreement with acceptable terms and conditions at a purchase a price of$6,000,plus the costs described previously; and, WHEREAS, if approved by the City Council, the next step would be to close the sale and proceed with determining the presence of asbestos on the property and demolition; and, WHEREAS, staff anticipates those costs could run approximately$20,000 to$40,000, and the Coordinator has spoken with Habitat for Humanity as a potential purchaser of the property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the borrowing of $8,205 to purchase the property at 1126 Grand Avenue, and $40,000 for asbestos removal and demolition from the City-Wide Affordable Housing Program Fund and then re-selling the property to reimburse the expenditures advanced from the Fund are hereby approved. ADOPTED THIS 10`'' day of November, 2020. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 10'day of November, 2020.