HomeMy WebLinkAbout07. 18-311 JUNE 12, 2018 18-311 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE SPOT SLIGHT DESIGNATION; AUTHORIZE
REDEVELOPMENT AUTHORITY TO ACQUIRE 1524 RUSH
AVENUE ($22,000)
INITIATED BY: COMMUNITY DEVELOPMENT
REDEVELOPMENT AUTHORITY RECOMMENDATION: Approved
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
WHERES, per Section 66.1333, Wisconsin Statutes, the Redevelopment Authority
may spot blight and acquire blighted property without designating a boundary or
adopting a redevelopment plan; and
WHEREAS, the property owner has offered the property at 1524 Rush Avenue to
the Redevelopment Authority and said property is not within a designated
redevelopment area; and
WHEREAS, the Redevelopment Authority conducted a public hearing and
approved a determination that the property at 1524 Rush Avenue is blighted and in need
of rehabilitation and blight elimination.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the property 1524 Rush Avenue is hereby declared blighted pursuant to the
provisions of Section 66.1333, Wisconsin Statutes.
BE IT FURTHER RESOLVED by the Common Council that a comprehensive
redevelopment plan is not necessary to determine the need for acquisition and
redevelopment of said property.
JUNE 12, 2018 18-311 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED that the proper Redevelopment Authority officials
are authorized and directed to acquire said property for $22,000.00 and execute any and
all documents necessary to consummate this transaction. Money for this purpose is
hereby appropriated from Acct. No. 303-0740-7208-16820 Community Development
Block Grant Housing Rehabilitation.
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: June 5, 2018
RE: Approve Spot Blight Designation; Authorize Redevelopment Authority to
Acquire 1524 Rush Avenue ($22,000) (RDA Recommends Approval)
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 to
a qualified, owner -occupied buyer after the rehabilitation is complete.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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 Council approves the spot blight designation and acquisition of property at 1524 Rush Ave.
Submitted,
*4tAV-'
J
Allen Davis
Community Development Director
Approved:
Mark A. Rohloff
City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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