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HomeMy WebLinkAbout2019-06-03 5 9. REQUEST FOR AUTHORIZATION TO SELL CITY-OWNED PROPERTY PURCHASED THROUGH THE WAYNE COUNTY FIRST RIGHT OF REFUSAL TAX FORECLOSURE PROGRAM: Livonia Housing Commission, re: for the vacant parcel located at 16147 Henry Ruff to Soave/Oro Construction, LLC for a sale prices of $55,001.00. Brandie Isaacson, Director of Housing, presented this request to Council. She stated she is requesting approval for the Housing Commission to sell the property at Henry Ruff. This property was purchased through the First Right of Refusal in late 2017. It did have a blighted property on it. The Housing Commission did remove that blighted property as well as a tree and now we’re going to sell it. We offered it for sale and received two quotes, Soave and the Neighbor, Matthew Dupree. The high bid was $55,001.00. Our appraisal was for $45,000.00, so we actually will be receiving more than what we spent out on this property. It cost us about $20,000.00 to purchase and raze the property. We do have to give any extra funds received back to the County though. Councilmember Bahr stated this program is great for the City. Here’s an example of a blighted property that’s now going to be redeveloped by, in this particular case, a developer that we’re all familiar with and he does really good work. He then offered an approving resolution for the Consent Agenda if there’s no objection. Councilmember Kritzman stated a quick clarification from Ms. Isaacson, one of the things she noted is that any extra funds would be forfeited back. He said it’s important to note to the people in the community that when we do acquire properties through the tax foreclosure process through Wayne County, through the First Right of Refusal, that whole process, we are not profiting from these properties. And when we acquire them and when we sell them it is not a money making venture for the City of Livonia. It’s our goal and our intention to make certain that these properties are returning back to the tax rolls and that we make them bid contributing properties for the community but it is not a money making venture for the City. President Toy asked if anyone from the audience wanted to speak on this item. Matthew Dupree, 16135 Henry Ruff, came to the podium. He stated that he was the other bidder for this property and he is at the meeting tonight because he would like to beg that the Council instead award the bid to me. I would note that in the bid packet there was no indication that the City would award it to the highest bidder. They said the highest qualified and they specifically noted, the Commission, which is like an outreach of you, specifically noted that you could refuse any bid. I’d like to suggest that the best bidder here was in fact myself and at the very least there should be some more examination of this. Members of the Council, I think the idea of this First Refusal program indeed was to insure the best development and I’d like to suggest that I would be able to do a better development here. The company 7 it on the Regular Agenda so we have two weeks to look at it and ask some questions of the Housing Department and hear from the other bidder if necessary. Councilmember Bahr asked Dupree if it was the house to the south of that property that he built and Dupree responded he didn’t actually build it, he purchased it, but he purchased it immediately following construction and that he lives there. President Toy asked if this is the one off of Lyndon and Dupree replied it would be off of Puritan on Henry Ruff up from Five Mile. President Toy said that property had been condemned if she’s not mistaken and Isaacson responded yes. President Toy then asked Dupree if his house abuts the property and he replied yes, he’s immediately to the south, so he like the literal neighbor and the most literal in that sense of term. President Toy asked Taormina if the abutting property owner have First Right on a piece of property like this and Taormina responded not necessarily. He stated they are afforded certain preferences for no bid opportunities to purchase property, in this case it was placed out for bid by the Housing Commission. There is an ordinance that does guide the process which is the reason it’s before you this evening because it’s only through the action of City Council that the disposition of any City property can be sold is his understanding. DIRECTION: 1) APPROVING REGULAR 2) REFER TO COMMITTEE OF THE WHOLE 10. REQUEST FOR AUTHORIZATION TO SELL CITY-OWNED PROPERTY ACQUIRED WHEN THE CITY OF LIVONIA ACCEPTED THE DEED IN 1963 FROM ROBERT AND MARJORIE BIESZK: Livonia Housing Commission, re: for the vacant parcel located at 8971 Floral to Soave/Oro Construction, LLC for a sale prices of $33,001.00. Brandie Isaacson, Director of Housing, presented this request to Council. She stated this property was obtained a little differently than their traditional means of First Right of Refusal. It is understood that Mr. and Mrs. Bieszk may have had some sort of loan agreement with the City of Livonia and when they lost their property, they deeded it back to the property so it was in blighted condition long before they came into the picture and demolished. At one point the Housing Commission did think about building a house on this property, but after really looking at the requirements, the purchase requirements that would be required for the purchaser and the size of the lot and the size of the house, they didn’t think it would be a good fit for a low income buyer to come in and be able to purchase the property. Typically it has to be under $150,000 and for the market value of that property, home prices are more. So it was better for them to sell the vacant lot