| | | | | | | | Council Communication
Department: Community Development
Case/Project No.:
Submitted by: Courtney Harter, CD Project Coordinator | Resolution 19-126
ITEM 6.B. | Council Action: 5/20/2019 |
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| | | | | | | | Description
Resolution authorizing the acquisition of 3420 2nd Avenue and authorizing the Mayor to execute an offer to buy and other related closing documents. |
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| | | | | | | | Background/Discussion
In 2013, the City began purchasing property along 2nd Avenue as part of the West Broadway/1st Avenue redevelopment efforts. Although the City’s acquisition efforts mostly halted due to funding constraints, property owners in the area frequently still call the City to inquire if we are interested in purchasing their property. Any subsequent land acquisitions are now focused on properties that square off blocks or are adjacent to other City owned parcels.
The owner of 3420 2nd Avenue contacted the City about purchasing his property. The property is adjacent to the previous Echo Electric office building, which was demolished by the City in 2018.
The four-family structure at 3420 2nd Avenue appraised for $178,000 in 2018. As directed by City Council, Staff made an offer of $178,000 which was countered by the Owner at $190,000 with the City paying all closing costs and taxes due for the second half of 2018 and first half of 2019. The proposed total cost for acquisition and negotiated closing items is $195,500. This amount is less than the amount authorized by City Council.
A resolution has been prepared authorizing the acquisition of the property for $190,000 and the cost of closing fees and taxes due for the second half of 2018 and first half of 2019. Total cost of acquisition and demolition is estimated at $210,500 and will be paid through CIP 18-04 and funds from the City’s 2018 Iowa West Foundation grant. Demolition of the property will occur within 60 days of closing and said costs will be the responsibility of the City. |
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| | | | | | | | Recommendation
Approval of the resolution authorizing the acquisition 3420 2nd Avenue and authorizing the Mayor to execute the real estate contract and other related closing documents. |
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