REAL ESTATE SUBCOMMITTEE OF
THE
REDEVELOPMENT AUTHORITY OF
THE CITY OF GREEN BAY
City Hall, Room 604
MEMBERS PRESENT: Matt Schueller, Harry Maier
MEMBERS EXCUSED: Dan Dallich
OTHERS PRESENT: Cheryl Renier-Wigg, Andy Rosendahl, Kevin King, John Rome, Tiffany Sines
ORDER OF BUSINESS:
1. Review and action on disposition of 333 S. Maple Avenue.
A. Rosendahl reviewed the property location and stated that the RDA acquired the property in 2006 and demolished it. The vacant lot was marketed for sale through the New Homes in Your Neighborhood Program for a new single-family home. More recently, staff identified the best use for this property to be green space due to the flood plain levels in this area. Offers to purchase the lot have been received from both neighbors for $1,000. In the past, when both neighbors were interested in the lot, the lot was split in half.
H. Maier asked the neighbor what their plans were for the lot. She stated that she has a fence that is being rebuilt. She is waiting for a tree to come down in her yard. Once she receives the approval for the lot purchase, she will bring the fence over to give her a larger yard.
The other neighbor stated they are in agreement with splitting the lot. He would like the additional yard space.
A. Rosendahl stated the sale would be contingent on the half-lots being added to the existing neighboring parcels.
A motion was made by H. Maier and seconded by M. Schueller to authorize disposition of 333 S. Maple Avenue to both neighbors. Motion carried.
2. Review and action on request for short sale on 511 5th Street.
K. King stated this request had come before the RDA in the past and the owner was told to bring forth an offer for a short sale. The owner now has an offer.
C. Renier-Wigg stated the RDA has a rehab loan on this property for $26,000 with a lien on this property in the second position behind $14,000.
K. King stated there is an offer to purchase the property and they are requesting a short sale. The request is to write off $13,000. The property had been on the market for some time and when this owner took over, she started out listing it at $42,000.
H. Maier asked for the total debt on the property.
C. Renier-Wigg stated $15,837 plus $26,000 for a total of $41,837.
M. Schueller asked what the options are when in the second position on a mortgage and asked what the house has been listed at for the past one and one-half year.
K. King stated the price had gone progressively down, starting in the $70,000s and then the $60,000s and there were no offers made. The current offer is for $27,000.
The options were reviewed. C. Renier-Wigg stated the options are to accept the short sale and get less than $10,000 or say no and continue to list it to try for a higher offer. If the owner walks from the property, it would go through foreclosure and we would have to decide if we would want to bid on it at Sheriff’s sale.
A. Rosendahl asked if the new buyer could assume the loan.
There was further discussion on the options and the possibility of working with the real estate agent on the brokerage fees.
M. Schueller stated they are asking the RDA to make a very significant concession.
C. Renier-Wigg stated we could counter asking for 50% of the loan back.
H. Maier expressed concern about losing the deal and having the property continue to deteriorate.
C. Renier-Wigg stated the offers states $7,800 possible net to the RDA, but she is not comfortable with the “possible” net wording. The motion should indicate a firm dollar amount.
A motion was made by H. Maier and seconded by M. Schueller to approve the short sale on 511 5th Street contingent on a purchase offer of $8,600 net to the RDA. Motion carried.
3. Review and approval for disposition plan of 312-314 Cass Street.
A. Rosendahl explained that the home needs significant investment and staff would like approval to go through the Request for Proposal process. He would like the subcommittee to confirm the minimum accepted purchase price amount of $25,000.
M. Schueller asked if we would require this property to be converted to a single-family. C. Renier-Wigg stated no, that the property was built as a two-family.
A. Rosendahl stated there is green space to the east of the property and they would require a garage to be built in that space.
H. Maier questioned why this property was purchased.
C. Renier-Wigg stated it was a request from Ald. Theisen to purchase the property with Neighborhood Enhancement Funds.
C. Renier-Wigg stated that the RFP should indicate that a conditional use permit will be required to keep it as a two-family. Approval from the Historic Preservation Commission will also be required. The proposal requirements would include exterior improvements and a garage. The proposal will be awarded based on bid price and the plan for the interior. The subcommittee will be asked to review the proposals and bring forward to the June RDA meeting.
A motion was made by H. Maier and seconded by M. Schueller to approve the disposition plan for 312-314 Cass Street as outlined. Motion carried.
4. Review and action on Resolution No. 625 to purchase 836 Kellogg Street using Neighborhood Enhancement Funds.
C. Renier-Wigg stated this request was made by Ald. Jeffreys. There was a fire at this property and the owner removed the building. The lot is currently vacant. The Salvation Army is working with NeighborWorks® Green Bay on three properties that they want to donate. This would be a lot that could be used to facilitate a house move for one of the Salvation Army properties. The owner is willing to sell the lot for $8,000.
A motion was made by H. Maier and seconded by M. Schueller to approve the purchase of 836 Kellogg Street for $8,000 using Neighborhood Enhancement Funds. Motion carried.
The meeting adjourned at 11:00 a.m.