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HomeMy WebLinkAboutOctober 29, 2008 - emerg mtgOFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS EMERGENCY CITY COUNCIL MEETING OCTOBER 29, 2008 Call to order/Roll Call/Pledge of Alle ig ance Peterson called the meeting to order at 7:04 p.m. Present: Mayor Peterson, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg Absent: Councilmember Williams Nawrocki stated his objection to the way this meeting was called. Fehst stated his appreciation for his comments. Peterson congratulated Councilmember Diehm on her promotion to partner of her firm. Consideration of purchase of property at 4618 Polk Street Scott Clark, Community Development Director, stated this meeting was authorized by the City Manager and Mayor. It is important to offer the council the opportunity to purchase property in the Sheffield area as directed by the City's goals. This is for 4618 Polk, which has a number of issues associated with it. The property will be going up for auction, but there is a second buyer for this property. It has gone through two other failed sales transactions. It is available for $118,000. It has been. offered to us for $110,000. This is two houses down and across the street from the property approved for purchase last week. There are traces of methamphetamine on the property. We recommend purchase of the property. We have a fund balance of approximately $500,000 to do this. This would also allow bidding for demolition of the building. Peterson asked the size of the lat. Fehst stated it is not a double lot. Clark stated it is about 6,000 square feet. Kelzenberg asked what the plans are for the property. Clark stated that the properties will sit until the market turns around. We will come back in three to four weeks for a financial plan out side of the current funds used. The overall goal is to take the opportunity to get properties at good prices. A full delineated plan for the area will be forthcoming. Nawrocki asked what the ancillary costs are. Clark stated they would be the closing costs of about $900 to $1,100 and about $19,000 for demolition and hazardous material removal. Nawrocki questioned the estimated lot cost. Clark stated it would be about $45,000. The taxable value is $240,000. Nawrocki asked why we should buy it if there is another interested party. Clark stated that if we want to move ahead and bring back owner occupied property rather than the path of the past. The history of the area is failed rental. We wish to change the overall character of the area to owner-occupied homes. Nawrocki referred to the fund balance allowing only approximately allowing the purchase of about another four homes. We should have a plan as to what we will do with the properties. Clark stated that we are putting together a plan; however, this property is a good parcel to purchase toward our overall objectives. Police Chief Scott Nadeau stated they have partnered with the Community Development Department and done problem oriented work in this area. We have made some strides, but we see historic opportunity to purchase some properties for $.40 to $.50 on the dollar. He stated he was in the area on Friday night and it was littered with gang graffiti.. This would be significant in this area and with other funding partners to make a difference in this area. Nawrocki stated he assumed that a buyer would fix up the property. Nawrocki. referred to the cost of other properties purchased with no plan. Peterson stated that we are attempting to change the character of the area. This is a duplex at a good price. We would get rid of a problem building with methamphetamines. If we stack pile these type buildings, we may be able to get more for the properties. The places were duplexes and tend to be problem area. We gave staff direction to be on alert for this type of property. That neighborhood is anxious to be crime free and to be a better neighborhood. Diehm agreed with the Mayor and asked staff to look into the new federal funding. Motion by Diehm, second by Kelzenberg to waive the reading of the resolution, as ample copies are available. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution No. 2008-272, being a Resolution approving the acquisition of property located at X518 Polk Street. Nawrocki referred to the building of duplexes in this area and spoke out at that time against doing so in neighborhoods where kids could not play. He was told he was against progress and that young couples would purchase them and live in one half and rent the other half. Have we had the property formally appraised. Clark stated it was not, but we have tracked prices in the market and realize the value of about Upon vote: Kelzenberg aye; Diehm, aye; Nawrocki, nay; Peterson, aye. Absent: Williams. Motion carried. Ad1ourn Mayor Peterson adjourned the meeting at 7:28 p.m. { r~..~ ~ ra~,n - __. atricia Muscovitz CMC City Clerk ~.-- RESOLUTION 2008-272 APPROVING THE ACQUISITION OF PROPERTY LOCATED AT 4618 POLK STREET WHEREAS, the City has found that there exists conditions of substantial deterioration which are in violation of the City Housing Code and City Ordinances or there exists a need (due to blighting influences) for intervention by the City to prevent further deterioration of the area, and WHEREAS, they City is making a concentrated effort to acquire foreclosed properties in the Sheffield area, and WHEREAS, the city has the option. to acquire such properly pursuant to the Purchase Agreement by and between the City of Columbia Heights and Eagle Realty (the "seller") and Purchase Agreement has been signed by the seller and provided to the City Council NOW THEREFORE BE IT RESOLVED t . The City Council hereby approves the terms of the Purchase Agreement for 46l 8 Polk Street NE between the City of Columbia Heights and Eagle Realty and authorizes the Mayor and City Manager to sign the agreement on behalf of the city at a purchase price of $110,000.00 plus all ancillary costs associated with closing and to proceed with demolition bids. 2. The City Council hereby authorizes staff to handle all the requirements and conditions in order for the City to complete the transaction contemplated in the Purchase Agreement. 3. The City Council approves payments of the purchase cost from the Sheffield Redevelopment funds (fund 410). 2