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City to purchase three rental properties through D&D program

Published: Wednesday, April 23, 2014 11:42 a.m. CDT • Updated: Wednesday, April 23, 2014 11:53 a.m. CDT
Caption
(Zach Johnson/Daily News)
One of two rental properties located at 608 S. Second Ave. W will be purchased by the city for the amount of $12,000 under the Newton Dangerous & Dilapidated program.
Caption
(Zach Johnson/Daily News)
This property is also being purchased through the program. This is a property at 319 E. 12th St. N. and is being purchased for $8,000.

The Newton City Council passed a resolution approving the purchase of real estate at three locations in Newton from William M. and Janet L. Plumb for the Newton Dangerous and Dilapidated Program by a unanimous vote on Monday.

Purchasing the three properties is an opportunity to move forward with neighborhood improvements. The D&D program is a part of the Newton Housing Initiative, in which money has been allocated for the removal of low-condition buildings.

The Planning and Zoning staff addresses the removal of low-condition buildings through two methods — the notice and order process spelled out by the city’s abatement code and the D&D program. The process has operated for more than 25 years in an effort to remove run-down properties from neighborhoods and replace them with new development.

The City of Newton will purchase the three properties for a total of $27,000, which is substantially less than the total assessed value of $150,790. Based on per-square-foot estimates, staff would anticipate combined demolition costs for the three properties to be approximately $35,000. The demolition bidding process would begin immediately upon acquisition.

The three rental properties are located at 608 S. 2nd Ave. W., 319 E. 12th St. N. and 315 E. 15th St. N.

The dwelling located at 608 S. Second Ave. W. was purchased for $12,000. The assessed value for this property is $86,370 with $75,880 in building value and $10,490 land value. This property is a highly visible rental property with six rental units. The property consists of multiple structures and is easily identifiable by the log cabin that is situated in the front portion of the lot. The lot dimensions are 66 by 132 feet.

“The removal of this structure would be a benefit to the neighborhood,” Planning and Zoning Director Erin Chambers said.

The dwelling located at 315 E. 15th St. N. was purchased for $7,000. The assessed value for this property is $38,250 with a dwelling value of $25,410 and land value of $12,840. This is a run-down single family rental property located in a highly congested neighborhood. The lot dimensions are 50 by 111 feet.

“Removal of this structure would be of benefit to the neighborhood as the majority of the homes in the surrounding area are well maintained,” Chambers said.

The dwelling located at 319 E. 12 St. N was purchased for $8,000. The assessed value for this property is $26,170 with a dwelling value of $16,630 and land value of $9,540. The property is a run-down single family rental property located in another highly congested neighborhood. The lot dimensions are 49 by 134 feet.

“The purchase and removal of this structure could begin a transformation of this block by encouraging additional demolitions,” Chambers said. “Long term, several lots could be combined to create some nice home sites.”

Staff writer Zach Johnson may be contacted at (641) 792-3121, ext. 425, or at zjohnson@newtondailynews.com.

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