Number
220769
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. COGGS
Title
Substitute resolution authorizing the sale of the City-owned property at 2377 North Hubbard Street to its former owner, Alexandria Church of God in Christ, Inc., in the 6th Aldermanic District.
Analysis
This substitute resolution waives the City buyer policy which prohibits the sale of City real estate to a buyer whose property has been acquired by means of property tax foreclosure during the past five years, and authorizes the Department of City Development to sell the City-owned property at 2377 North Hubbard Street to its former owner.
Body
Whereas, The property at 2377 North Hubbard Street (the “Property”), Tax Key No. 3220229100, was acquired by the City of Milwaukee (“City”) from Alexandria Church of God in Christ, Inc. (“Former Owner”) through in rem property tax foreclosure in August, 2017; and
Whereas, The Former Owner desires to purchase the Property back from the City; and
Whereas, The Former Owner had petitioned the Judiciary and Legislative Committee (“Committee”) to vacate the in-rem judgment and was unable to vacate the judgement at the time of approval due date; and
Whereas, The General Buyer Policies in Milwaukee Code of Ordinances (“MCO”) Section 304-49-9 provide that, “unless otherwise authorized by a vote of the common council,” the City shall not convey a City-owned property to a “party who owned property in the city that, at any time within the past 5 years the city acquired by means of property-tax foreclosure;” and
Whereas, The Common Council of the City of Milwaukee (“Common Council”) desires to authorize the sale of the Property to the Former Owner; and
Whereas, The buyer has paid the City of Milwaukee $20,721.00 in rent which satisfies the amount of taxes and fees owed to the City at the time of foreclosure; and
Whereas, The file sponsor recommends accepting the Former Owner’s purchase price offer of $1.00; and recording of a Payment in Lieu of Taxes (“PILOT”) Agreement; and
Resolved, That the Department of City Development (“DCD”) is authorized to accept an offer to purchase the Property from the Former Owner, provided that the Former Owner meets the following conditions:
1) The offer price equals the sponsor of the file’s recommendation, which is $1.00.
2) A PILOT Agreement is signed by Former Owner and recorded with the sale, in the event that the Property owner applies for property tax exemption.
3) The PILOT Agreement whereby the Former Owner will also make an annual PILOT to the City of $2,400 if the buyer applies for and is granted a property tax exemption.
4) The Former Owner provides documented evidence of financial ability to pay the full sales price and closing costs at closing, and understands that the evidence will be verified by DCD.
5) The Former Owner passes all City’s standard buyer checks other than MCO 304-49-9-e.
6) The Former Owner closes the sale no later than November 28, 2022; and, be it
Further Resolved, That if the sale does not close by November 28, 2022, the offer shall be deemed to be rejected; and, be it
Further Resolved, That upon sale closing, sale proceed will be distributed as required by MCO 304-49-12.
Drafter
DCD:Matt.Haessly:mfh
09/26/22