HomeMy WebLinkAbout18-09 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN
JUNE 6, 2018 18-09 RESOLUTION
(APPROVED LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE SPOT BLIGHT DESIGNATION; APPROVE
ACQUSITION OF PROPERTY AT 1524 RUSH AVENUE ($22,000)
WHEREAS, the Redevelopment Authority of the City of Oshkosh was created to
assist in the elimination and prevention of blight and blighting influences and to promote
urban renewal; and
WHEREAS, the property at 1524 Rush Avenue exhibits conditions cited under
Section 66.1333 (2m)3.(bm) of the Wisconsin Statutes that consider said property to be
blighted; and
WHEREAS, the Redevelopment Authority has conducted a public hearing to
obtain comments and determine if said property is blighted; and
WHEREAS, the owner has offered the property at 1524 Rush Avenue to the
Redevelopment Authority in the amount of$22,000, plus closing costs.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the
City of Oshkosh that:
1. Findings and Determinations. It has been found and determined and is
hereby declared that:
(a) conditions of blight exist at the Property; and
(b) a comprehensive plan of redevelopment is not necessary with
respect to the private redevelopment of the Property or the relation
of the redevelopment of the Property to other property redeveloped
by the Authority.
2. Spot Blight Designation. The Authority hereby finds that the Property is
blighted in need of rehabilitation and blight elimination under the meaning
in Section 66.1333 (2m)3.(bm) of Wisconsin Statutes.
JUNE 6,2018 18-09 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED that the proper officials are hereby authorized and directed
to purchase 1524 Rush Avenue in the amount of $22,000.00 plus closing costs and execute any
and all documents necessary to consummate this transaction. Money for this purpose is hereby
appropriated from Community Development Block Grant Funds.
TO: City of Oshkosh Redevelopment Authority
FROM: Allen Davis, Community Development Director
DATE: May 30, 2018
SUBJECT: 18-09 Approve Spot Blight Designation; Approve Acquisition of
Property at 1524 Rush Avenue
Background
A house fire damaged the interior of the house so that is no longer habitable. City
inspectors have issued orders for the repair, and the owner has not been able to make the
repairs. Major rehabilitation of the property would be needed, and the cost estimate for
the rehabilitation is $95,000 to $105,000. The house exterior has been in good condition,
however, the house is currently unoccupied and signs of exterior deterioration are
evident. The surrounding neighborhood is in good condition, and this property could
become the blighted property in the neighborhood.
Analysis
City staff has been working with an attorney representing the owner, and has offered
$22,000 for the vacant property, based on the condition of the property, and the offer is
conditioned on RDA and City Council approval. It would be staff's expectation that the
$22,000 purchase price and the$105,000 rehabilitation would total about$127,000 in total
project costs. The current assessed value is $129,000.
Based on the damage to the house from the fire, and after city inspection, the City
Assessor will revalue the property at $39,700. The City could recover the investment in
the acquisition and rehabilitation and restore the value to the property. It would be
possible to sell the property for a qualified, owner-occupied buyer after the rehabilitation
is complete.
Fiscal Impact
The city can use CDBG funds for the project and the CDBG funds will be recycled as
program income upon the house sale after rehabilitation. The carrying costs for the lawn
care and snow clearance would be about$500.
Recommendation
The RDA approves the spot blight designation and approves the property acquisition.
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