Number
090162
Version
SUBSTITUTE 2
Reference
Sponsor
ALD. BAUMAN
Title
A substitute ordinance relating to policies and procedures for disposition of city-owned real estate.
Sections
304-49-2 rc
304-49-4 rc
304-49-8-0 am
Analysis
Currently, the commissioner of city development periodically provides the common council with a report listing, by aldermanic district, city-owned vacant lots and improved parcels containing 4 or fewer housing units (i.e., “neighborhood properties”) that are recommended for disposition. This ordinance modifies this report procedure to require that the commissioner, in consultation with the local common council member, classify each improved neighborhood property in one of the following categories, with the category designation noted on the report:
a. Habitable Property. This property is habitable in its current condition or can be rendered habitable with reasonable effort and funds proportionate to the assessed value of the property. The property shall be marketed to private purchasers for owner-occupancy. If rehabilitation or restoration is required, the property shall not be sold until the commissioner of neighborhood services has approved a restoration plan for the property and the commissioner of city development has certified that the prospective purchaser has the skills and financial resources to carry out the plan.
b. Uninhabitable Property. This property is not habitable in its current condition and cannot be rendered habitable with reasonable effort and funds proportionate to the assessed value of the property. The property shall be designated for demolition or deconstruction and shall not be subject to further disposition action.
c. Special Consideration Property. This property is not habitable in its current condition and is unlikely to be restored or rehabilitated by a private purchaser because the scope of work exceeds the amount of work that a private purchaser would reasonably be able to complete. However, the property is worthy of restoration or rehabilitation based on such factors as neighborhood context, architectural characteristics or quality, historic status of the structure or the neighborhood in which it is located, or other relevant factors.
Properties in the third category shall be further classified into the following 2 sub-categories:
a. Public Restoration Property. This property is suitable and recommended for immediate restoration or rehabilitation by the city, the housing authority, the redevelopment authority or another public entity.
b. Mothballing Property. This property is not suitable and not recommended for immediate restoration or rehabilitation by a public entity, but shall be designated for mothballing or landbanking by the city. Mothballing shall include boarding of windows with Lexan, securing the structure and emergency repairs required to prevent further deterioration of the structure, including but not limited to roof repairs, basic landscaping and exterior site clean-up. A property in this category shall not be subject to further disposition action (unless otherwise approved by the common council), but shall be re-evaluated annually to assess any change in circumstances which may warrant a change in its classification.
This ordinance also provides that the department of city development shall not be authorized to advertise, market for conveyance or convey any improved parcel of neighborhood property unless it is classified as habitable property. Finally, the department shall not be authorized to sell or convey any neighborhood property classified as habitable property unless the commissioner of city development determines that the grantee has the skills and financial resources needed to successfully carry out the rehabilitation or restoration plan for the property.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-49-2 of the code is repealed and recreated to read:
304-49. Disposal of City Real Estate.
2. NEIGHBORHOOD PROPERTY REPORT. a. The commissioner shall, from time to time, tender to the common council by letter, a report listing, by aldermanic district, each parcel in the city’s inventory of neighborhood property. For each parcel, the following information shall be provided:
a-1. Address.
a-2. Tax key number or numbers, if available.
a-3. Property description, including whether or not the property is improved and, if improved, a brief description of such improvements.
a-4. Parcel size.
a-5. If the parcel is improved, the classification of the property pursuant to par. b.
a-6. If the property is either a vacant lot or an improved property classified as a habitable property pursuant to par. b, the proposed method of disposition of the property.
b. In consultation with the local common council member, the commissioner shall classify each improved neighborhood property in one of the following categories:
b-1. Habitable Property. This property is habitable in its current condition or can be rendered habitable with reasonable effort and funds proportionate to the assessed value of the property. The property shall be marketed to private purchasers for owner-occupancy. If rehabilitation or restoration is required, the property shall not be sold until the commissioner of neighborhood services has approved a rehabilitation or restoration plan for the property and the commissioner of city development has determined that the prospective purchaser has the skills and financial resources to successfully carry out the plan.
b-2. Uninhabitable Property. This property is not habitable in its current condition and cannot be rendered habitable with reasonable effort and funds proportionate to the assessed value of the property. The property shall be designated for demolition or deconstruction and shall not be subject to further disposition action under this section.
b-3. Special Consideration Property. This property is not habitable in its current condition and is unlikely to be restored or rehabilitated by a private purchaser because the scope of work exceeds the amount of work that a private purchaser would reasonably be able to complete. However, the property is worthy of restoration or rehabilitation based on such factors as neighborhood context, architectural characteristics or quality, historic status of the structure or the neighborhood in which it is located, or other relevant factors. Each property in this category shall be further categorized as one of the following:
b-3-a. Public Restoration Property. This property is suitable and recommended for immediate restoration or rehabilitation by the city, the housing authority, the redevelopment authority or another public entity. The commissioner shall submit to the common council, concerning any property classified as a public restoration property, a recommendation as to the identity of the public entity that might restore or rehabilitate the property. Classification under this category does not itself impose any duty on any public entity to restore or rehabilitate the property.
b-3-b. Mothballing Property. This property is not suitable and not recommended for immediate restoration or rehabilitation by a public entity, but shall be designated for mothballing or landbanking by the city and maintained in accordance with s. 304-59. Mothballing shall include boarding of windows with Lexan, securing the structure and emergency repairs required to prevent further deterioration of the structure, including but not limited to roof repairs, basic landscaping and exterior site clean-up. A property in this category shall not be subject to further disposition action under this section (unless otherwise approved by the common council), but shall be re-evaluated annually to assess any change in circumstances which may warrant a change in its classification.
Part 2. Section 304-49-4 of the code is repealed and recreated to read:
4. CITY SALES OF NEIGHBORHOOD PROPERTY. a. The department of city development, under direction of the commission, shall, pursuant to this subsection, have authority to advertise and market for conveyance, and to convey, by lease, deed, or other appropriate form of conveyance, all neighborhood property in the report except:
a-1. An improved parcel of neighborhood property which is classified as an uninhabitable property or a special consideration property pursuant to sub. 2-b.
a-2. Any parcel of neighborhood property designated by a member of the common council pursuant to sub. 3, and for which the common council fails to approve the sale of such parcel of neighborhood property.
b. If the department chooses to solicit bids for a neighborhood property, the department
shall, at the direction of the common council member in whose district the property is located, prepare a notice which may be mailed by the common council member to each resident and property owner of the circular area having a radius of 500 feet, centered on the property which is to be sold, informing residents and property owners that the city is soliciting offers to purchase the property. The bid solicitation notice shall state that if the
resident or property owner is interested in purchasing the property, the resident or property owner should submit an offer to purchase by 10:00 a.m. on the 30th day after the date of notice. If the 30th day falls on a weekend or holiday, the deadline for submitting an offer shall be the next business day. A bid submitted by a resident or
property owner within the 500-foot radius who intends to occupy as an owner shall be given first consideration with respect to the purchase of a property. Any person submitting a bid for an improved parcel of neighborhood property that is classified as habitable property shall be able to demonstrate that the person will satisfy the owner-occupancy requirement and also that the person will submit a restoration plan and demonstrate skills and financial resources to carry out the plan.
c. All conveyances shall be for adequate market consideration, as determined by the commissioner or commissioner’s designee, which consideration may recognize and value monetary as well as non-monetary consideration, including, but not limited to,
public policy considerations of property and neighborhood stabilization, health, safety and welfare concerns, future improvements to or development or remediation of the parcel, returning the parcel to the tax rolls, and promoting home ownership. The commissioner may impose restrictions and remedies in connection with any such conveyance in order to effectuate the transaction, including, but not limited to, deed
restrictions requiring home ownership or ownership by property-tax-paying owners,
deadlines for commencement and completion of improvements, requiring the combination of the parcel with another or other parcels, requiring the correction of building code violations and satisfaction of orders of the health department and
department of neighborhood services, requiring the satisfactory completion of a property rehabilitation or restoration plan required by sub. 2-b-1 and reversionary or other city-protective provisions in the event of breach or default.
Part 3. Section 304-49-8-0 of the code is amended to read:
8. GENERAL BUYER POLICIES. Notwithstanding the foregoing, unless otherwise authorized by a vote of the common council, the city shall not convey development property or neighborhood property to any person or entity (“grantee”) [[,]] >>unless the commissioner determines that the grantee has the skills and financial resources needed to successfully carry out the property rehabilitation or restoration plan required by sub. 2-b-1, if applicable, and<< without first obtaining such grantee’s warranty that neither the grantee nor any principal of the grantee is:
LRB
APPROVED AS TO FORM
__________________________
Legislative Reference Bureau
Date:______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
__________________________
Office of the City Attorney
Date:______________________
Requestor
Drafter
LRB09230-3
JDO
07/28/2009