REAL ESTATE SUBCOMMITTEE OF
THE
REDEVELOPMENT AUTHORITY OF
THE CITY OF GREEN BAY
City Hall, Room 604
MEMBERS PRESENT: Matt Schueller, Tom Weber, Harry Maier
MEMBERS EXCUSED: Dan Dallich
OTHERS PRESENT: Cheryl Renier-Wigg, Andy Rosendahl, Noel Halvorsen
ORDER OF BUSINESS:
1. Review and action on disposition of 823 Oregon Street and 836 Kellogg Street for Adopt-A-Home house move projects.
C. Renier-Wigg explained that 823 Oregon Street was donated to the RDA and 836 Kellogg Street was a vacant lot that we purchased for $8,000. The intention was to work with NeighborWorks Green Bay on a project with the Salvation Army to clear houses on their property that they are donating to NeighborWorks. The Salvation Army houses would fit on these parcels. Noel Halvorsen presented a proposal for the house move projects.
823 Oregon Street is assessed at $11,400 and our cost to remove the house and environmental work comes to $11,360. The RDA paid $8,000 for 836 Kellogg and it is assessed at $13,800.
It was noted that the house on Kellogg has already been removed and the house on Oregon is in the process of coming down.
N. Halvorsen reviewed their proposal to remove two bungalows, owned by the Salvation Army, from Union Court to the lots on Kellogg and Oregon. He pointed out that one of two houses would get moved from Union Court to the Oregon Street lot, depending on which will fit better.
H. Maier asked when the houses would be moved.
N. Halvorsen stated they have financing in place and the donors are prepared to move forward so they could start right away. They would like to get them moved this summer.
C. Renier-Wigg reviewed how the Adopt-A-Home program works.
N. Halvorsen stated they would sell the home on the open market and there are no income restrictions. Part of the purpose of the program is they recognize that all of the government funded projects had strings attached and they wanted to compliment those programs with a program where moderate or above-moderate income families could get into these houses to provide economic diversity in the neighborhoods.
A motion was made by T. Weber and seconded by M. Schueller to approve the disposition of 823 Oregon Street and 836 Kellogg Street to NeighborWorks Green Bay.
There was discussion regarding the approved amount of the sale. N. Halvorsen is requesting to take the lots for no cost. C. Renier-Wigg stated that in the past with Habitat projects they’ve sold lots for fifty cents on the dollar of the assessed value.
N. Halvorsen stated he’d be in agreement with being consistent with the Habitat projects.
There was discussion on coming up with a policy so things are being done consistently and the consensus was to go with 50% of assessed value as our benchmark and if there is a situation of a donated property to go 50% of cost.
The motion by T. Weber was revised to authorize the disposition of 823 Oregon Street for $5,700 and 836 Kellogg Street for $4,000 to NeighborWorks Green Bay for a combined sale price of $9,700. M. Schueller seconded the motion and the motion carried.
2. Review and action on Resolution No. 629 to purchase 615 N. Maple Avenue and 235 N. Roosevelt Street using NSP funds.
A. Rosendahl stated these properties are proposed Neighborhood Stabilization Program acquisitions. A requirement of the program is for a percentage of our funds to be dedicated to benefitting families with less than 50% of area median income. The program designed to accomplish this was to provide a comfortable rental situation. These are the two properties they would take on to reach that benchmark.
The property at 615 N. Maple was reviewed. It has an assessed value of $173,900 and equalized of $182,700. It is a foreclosure and has been vacant for some time. The property was brought to our attention through the National Community Stabilization Trust (NCST). It is offered to us at a discounted value. The NCST appraisal came in at $120,000 and our appraisal came in at $110,000. Their offer to us was for $105,500. The anticipated total project budget is around $400,000.
C. Renier-Wigg stated that $140,000 per unit was budgeted for this program for acquisition and rehab. Being a multi-family unit, there will be a great savings on what was budgeted and will provide us the ability to do two additional rehab/resale projects.
T. Weber questioned if there would be any zoning and setback issues with the rehab.
A. Rosendahl stated the property is zoned R-3 and is a legal non-conforming property. That status would remain.
In response to a question from M. Schueller, it was stated that NeighborWorks would be the landlord of the property. The property must be maintained for 15 years under the NSP guidelines.
A. Rosendahl provided an overview of the property at 235 N. Roosevelt. It is a two-family flat and is also a foreclosure. The property is assessed at $98,300 with an equalized value of $103,300. The property was listed at $69,900. Staff made an offer of $55,000; they countered at $60,000 and that was accepted contingent on RDA approval. This would be a two-family rental unit rehabbed and managed by NeighborWorks Green Bay.
N. Halvorsen stated that the properties at 615 N. Maple and 235 N. Roosevelt were built as multi-families.
H. Maier asked how staff became aware of these properties.
A. Rosendahl stated that several realtors know they are looking for properties so they get calls from realtors, as well as emails from the National Community Stabilization Trust.
A motion was made by T. Weber and seconded by H. Maier to approve the acquisition of 615 N. Maple Avenue for $105,500 and 235 N. Roosevelt Street for $60,000 using NSP funds. Motion carried.
The meeting adjourned at 10:30 a.m.