Agenda Item Title:
Approve Purchase Agreement for 627 Saint Cloud Street to Include Reduction of Unpaid Water Bill in the amount of $6,147.61 to $1,500 and Forgiveness of Balance Owed of $4,647.61 and Approval for Mayor and Finance Officer to Sign the Purchase Agreement and Closing Documents
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
05/02/2018
City Council Hearing Date:
05/07/2018
Staff Contact:
Barbara Garcia
Agenda Item Summary:
627 Saint Cloud Street is a vacant residential lot. In 2015, the City abated debris on the property and demolished the home due to a broken water pipe that had caused major water and mold damage to the foundation and home. The owners have indicated a willingness to sell the lot to the City if the City will reduce the amount owed on the water bill.
Outstanding water bill includes:
$1935.03 - Water $4007.35 – Sewer $ 205.23 – Garbage = $6,147.61 Total less $1,500 = $4,647.61 Requested to Forgive
Liens against property include:
$ 5,591.74 - County Taxes & Special Assessments (includes City Special Assessment of $1,487)
$ 7,242.00 - Demolition of home
$12,833.74 Total
Appraised sale value and purchase offer for property is $21,000.
The offer is contingent upon the Seller providing clear title and paying off all liens and assessments against the property at closing and paying $1,500 of the water bill.
Community Development Block Grant funds will be used for the purchase price and Buyer’s (City’s) closing costs. The lot will be utilized for the development of an affordable rental unit as part of the City’s affordable housing initiative for infill lots.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| Community Development Block Grant Funds | |
Recommendations:
Origination Recommendation Action:
Approve