Title
Rehabilitation and Sale of House Located at 407 Northwest 8th Street (NB)
Explanation
On September 24, 2001, the City Commission approved the CRA and Housing Division to rehabilitate a residence located at 407 Northwest 8th Street as a joint house-recycling venture. M.Z. Faison was awarded the bid to rehabilitate the property in the amount of $84,530. In October 2001, Mr. Faison unexpectedly passed away. Mr. Faison was a sole proprietor; therefore, the business expired upon his death. Since that time, the Housing Division has been working with the second bidder, M.J. Koken Company, Inc. to determine if the project was still feasible. The second bid on the project was $103,565.
After review of financial resources, the CRA and Housing propose to split the cost of this project equally as originally planned, with each contributing $51,782.50 plus a 10% contingency to move forward with the rehabilitation of this project. The CRA and Housing Division staff are recommending to pool funding sources to share the costs of the rehabilitation and the net sales proceeds from the sale of the house. Sharing the rehabilitation costs and net sales proceeds will make it feasible to rehabilitate the property, and would return some of funds to the Housing Division and CRA to use for other projects. The CRA would agree to transfer title of the property to the City and provide its portion of the funds. The City in turn would agree to rehabilitate the property to certain standards and sell it to an income eligible homebuyer with 50% of the net proceeds of the sale being returned to the CRA.
Fiscal Note
Funds are budgeted in the Housing Division's FY 2001-2002 budget (104-790-7955-5540) to cover the City's portion of the cost to rehabilitate the property.
Recommendation
If the City Commission chooses to move forward with the second bid: 1) authorize the Mayor to execute a contract and all necessary documents with the CRA to transfer the property ...
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