HomeMy WebLinkAbout~Master - Agreement for Sale of City-Owned Lot 1 in Baker Subdivision to Habitat for Humanity of Central Iowa RESOLUTION NO. 24-312
RESOLUTION APPROVING AGREEMENT FOR SALE OF CITY-OWNED LOT 1 IN
THE BAKER SUBDIVISION TO HABITAT FOR HUMANITY OF CENTRAL IOWA
FOR THE CITY OF AMES,IOWA
WHEREAS, in 2015, as part of the City's Community Development Block Grant(CDBG)
Program, the City acquired a 10+ acre site located at 321 State Avenue (formerly the site of the
Old Ames Middle School). The site was purchased to develop a subdivision that will support the
affordable housing goals of the City as a mixed-income development, with a minimum of 51% of
the homes affordable to low and moderate-income households. The subdivision would consist of
27 buildable lots, 26 single-family lots, and one lot for multi-family units; and,
WHEREAS, in July 2022, the City of Ames, as the developer for the subdivision,
completed the public infrastructure improvements (streets, water, sewer, electrical, sidewalks,
including geothermal for the 26 single-family lots. The subdivision covenants were adopted in
December 2021. The City is now positioned to develop the lots to construct single-family homes.
As noted above, 51%(14)of the lots have to be available to low and moderate-income households;
and,
WHEREAS, Habitat for Humanity of Central Iowa (HHCI) has approached staff with an
interest in purchasing an additional lot in the Baker Subdivision. Staff and HHCI have identified
Lot One(1),412 S. Wilmoth, located along the south side of Wilmoth Avenue as meeting HHCI's
interest; and,
WHEREAS,this collaboration with Habitat for Humanity of Central Iowa would represent
the eighth endeavor between Habitat and the City of Ames in purchasing lots in the Baker
Subdivision. Lots 2-7 were purchased earlier this year. This project will allow the City to continue
to address one of its priority goals outlined in the 2023-2024 Annual Action Plan and the 2019-
2023 CDBG Consolidated Plan,which is to increase the supply of affordable housing for low- and
moderate-income (LMI) households; and,
WHEREAS, the City's Finance Director has reviewed a draft of HHCI's 2022 Annual
Audit Report and finds it in good order, including the audit opinion. Therefore, staff has been
working with the HHCI Executive Board and the City's Legal Department to prepare the attached
purchase agreement for City Council review and approval; and,
WHEREAS,highlights of the agreement included a sale price of$50,000 and an escrowed
non-refundable down payment of $2,500 (5.0% of the purchase price for the property) with a
completion and sales date to a qualified first-time homebuyer on or before May 31, 2026; and,
WHEREAS, the sale of Lot 1, 412 S. Wilmoth in the Baker Subdivision to Habitat for
Humanity of Central Iowa will assist the City in its efforts to continue to address the housing needs
of LMI first-time home buyers. The sale of this lot will complete the sale of all of the lots along
the south end of S. Wilmoth to Habitat for construction of affordable housing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that agreement for sale of City-Owned Lot 1 in the Baker Subdivision to Habitat for Humanity of
Central Iowa is hereby approved.
ADOPTED THIS 28th day of May, 2024.
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Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Rollins
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: Betcher
Resolution declared adopted and signed by the Mayor this 28th day of May, 2024.