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Home My WebLink About05/05/2009 07 Sale of Property at 201 South 8th Street ® BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7 For Meeting of May 5, 2009 ITEM TITLE: A resolution approving the sale of property at 201 South 8th Street to: A. OIC of Washington to demolish the existing structure located at 201 South 8th Street and build a new home to be sold to a low to moderate income, first time homebuyer; or B. The highest bidder proposing to rehabilitate the existing structure located at 201 South 8th Street. SUBMITTED BY: William R. Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: Michael Morales, Community and Economic Development Deputy Director (575 -3533) SUMMARY EXPLANATION: The property located at 201 South 8th Street was purchased in February of 2005 and has been discussed at length by the City of Yakima Neighborhood Development Committee multiple times. After considerable analysis of the cost affordability, federal regulations involved, and time • constraints in using City of Yakima HOME funds to rehabilitate this structure, Neighborhood Development Services (ONDS) was instructed by the Council Neighborhood Development Committee to advertise a "Request for Proposal" (RFP) to address the property. The RFP was advertised in Seattle, Spokane, Portland and Yakima. Upon receiving three proposals, the Neighborhood Development Committee recommended forwarding the 010 proposal to the. full City Council for review. The OIC proposal includes a condition that the City demolish the existing structure and make the cleared lot available for construction by June 1, 2009. A newly constructed three bedroom home is proposed to cost approximately $150,000 and would be financed through the City of Yakima Neighborhood Development Services using HOME program funding and sold to a first time homebuyer. Continued on Page 2 Resolution X Ordinance Other (Specify) Agreement Mail to (name and address): Funding Source HOME Funds APPROVED FOR SUBMITTAL: ``�.�� City Manager STAFF RECOMMENDATION: Approve Agreement with OIC BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The Council Neighborhood ® Development Committee originally recommended that the 010 proposal be forwarded to the full Council for approval. COUNCIL ACTION: Page 2 At your meeting on April 21, 2009, Council postponed a decision on the Committee's recommendation to sell this property to OIC, and asked staff to place a "for sale" sign (see attached photo) on the property and continue efforts to sell the property to someone who would improve or restore the existing building. As a result of the additional effort, we have received numerous phone calls. Four of the interested parties have visited the site and toured the building. Our conditions for receiving proposals (copy attached), provides a deadline of Monday, May 4, 2009, at 4:00 p.m., for receiving written offers. As of Thursday, April 30, we have received one written proposal. However, for this and subsequent offers that may be received between now and the deadline, staff is unable to evaluate the ability and /or availability of sufficient private resources to complete the project. The information regarding the highest bid will be supplied to Council after the May 4, 4:00 p.m. deadline has passed. It is Council's decision on which of the two proposals to accept. However, if a decision by Council is not made at the May 5, 2009 meeting, staff cannot assure that the conditions included in the proposal from OIC can be met. Council may remember that there was an offer made, at your April 21, 2009 meeting, to move the existing structure located at 201 South 8th Street. Staff has made efforts to contact the woman who made this offer. We have left messages at her email address. The phone number we were given is not in service. We will continue our efforts to verify this offer, and will present our findings at your May 5, 2009 meeting. Please note that this offer could reduce the City's cost of demolition but should not be a factor in selecting from the two options in the attached resolution. 0 RESOLUTION NO. R 2009 - A RESOLUTION: approving one of the following options: A. Accepting a proposal from 010 of Washington to purchase a City -owned lot at 201 South 8th Street following demolition of the existing building by the City, and build a new home to be sold to a low to moderate income, first time homebuyer: or B. Accepting a proposal from the highest bid received for sale and rehabilitation of the existing structure at 201 South 8th Street. WHEREAS, the property located at 201 South 8th Street was purchased in February of 2005 using federal HOME funds provided by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the matters of cost affordability, federal regulations involved and time constraints in using City of Yakima HOME funds to rehabilitate this structure have been carefully considered; and WHEREAS, the City has received a proposal for "Demolition of the existing building and the construction of a new home, to be sold to a qualified, low to moderate income, first time homebuyer" by OIC of Washington ; and ID WHEREAS, the City has also received a proposal from a private party stating that the bidder plans to reconstruct the existing building; and ` . WHEREAS, federal HOME regulations require that an affordable home for a low to moderate income family be completed by December 31, 2009, or the City must make repayment, to HUD, from a non - federal source, of the HOME funds invested in the property, an amount currently . estimated at $78,000; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Council accepts: A. The proposal from 010 of Washington to build a new home at the location of 201 South 8th Street and authorizes the City Manager to execute a contract between the City of Yakima and OIC of Washington; or B. The City Council accepts the proposal for the highest bid received for sale and rehabilitation of the existing structure located at 201 South 8th Street. ADOPTED BY THE CITY COUNCIL this 5th day of May, 2009 ATTEST: David Edler, Mayor City Clerk Ill .0r ! .411,. ' . j, x - . 1, ''' Is- 3- : o : . 3 J f : S 1 r .r 2 y r R , ; 4 a ' .. ' y " ' � h 1f �L�'/ ♦�J . d E : ':` ; f ' , . _ � 1 • r �� • 14' .J 1 , e�( a ) L'- ' ) r �+ ' �s� � n � I f ' y 11 lit i is ir , r .i� :.I .• 1 i ii f ' '. • w • ' - " '� .., f 4• t ,�p�t� y ms: r I � f !� j ro j 3 } f e � �i7 y VS � . �, � \ y .,a l ✓ �_ Kam. - w y s - Y} t C t ♦. • {yA� •4.h !•- � • Y a ��' s ": /' -4.1,.. P ' e � � may _ * 4a • o s 4 f y Vii. IF i IF ' _ - - _ • , a ___ _ __ _ ___ _ .... r . , . . 79 '- - -,. ...,-:.' - — [te a* 4 „ 6.."- :F , -"_ - ._ a ~ d"^ ,, -- - - -. - µ .1d_�i1C' • -..-- - . ti is t . ` _ !L _=. - - - .. *�» For Sale I - .• F ' b :b 0101 ! - 1 t y y • . .�. _ �_N ._ -. - -- . ' • Sale of property at 201 South 8 Street By the Office of Neighborhood Development Services (ONDS) City of Yakima, Yakima Washington April 27, 2009 The Office of Neighborhood Development Services is accepting offers to purchase and restore the single family residential property at 201 South 8 Street. Please follow the conditions below in submitting a proposal. Proposals must be received at the offices of ONDS, 112 South 8 Street, by 4:00 pm Monday, May 4, 2009 to be considered. Conditions: 1. The existing house must be repaired/restored to a single family home within one year. 2. A walk through of the building is required to submit a proposal. Please contact Archie Matthews at 575- 6101 to schedule your visit. 3. Sale price: best cash offer. 4. Deadline for written offers is 4:00 pm Monday May 4, 2009. 5. Sale of property is "as is" 6. Include in your written offer: a. Brief summary of your construction/development experience b. Date you walked through the house c. Proposed timeline for repairing/restoring the house d. Your cash offer e. Name, address, phone number