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275 Bates Avenue, (in foreground) in the Dayton's Bluff neighborhood of St. Paul, can be purchased for $1 from the St.Paul Housing and Redevelopment Authority, and 279 Bates (in distance) is on the market for $5000. (Pioneer Press: Scott Takushi)
posted by Bob at Monday, August 24, 2009
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23 Comments:
St. Paul is offering bargain-basement prices — from $1 to $50,000 — for 11 Dayton's Bluff homes, but buyers must foot the bill for repairs and satisfy city rules and preservation guidelines
By Christopher Snowbeck
csnowbeck@pioneerpress.com
Updated: 08/24/2009 12:53:22 AM CDT
For the price of a cup of coffee, you can buy a home in St. Paul.
But there are some expensive strings attached.
The city's Housing and Redevelopment Authority is sponsoring open houses this week for 11 properties in the Dayton's Bluff neighborhood with asking prices that range from $50,000 all the way down to $1.
The HRA owns the homes, and city officials say they will sell only to buyers who demonstrate they can finance repairs that could cost anywhere from $140,000 to $190,000. Buyers must explain how they will do the work and agree to make fixes that satisfy city rules and historic preservation guidelines for the neighborhood.
The buyer of a $1 property at 689 E. Fourth St., for example, gets both a home and a long to-do list from city inspectors — everything from removing a rotted wall to replacing joists, studs, beams and posts that were damaged by a fire.
Buying a home for a buck, in other words, is no lark.
"When people acquire these properties, they're not just going to be paying the acquisition price," said Ellen Biales, aide to city council president Kathy Lantry. "The $1 price has sort of piqued people's interest, but it comes with certain obligations."
While rare, residential sales for a dollar in the Twin Cities aren't unprecedented, real estate agents say.
Earlier this year, the city of Minneapolis spent $1 each for two vacant lots that were being sold by banks following foreclosures. A city official said the lots could
be part of future redevelopment efforts.
Homes that were on the lots have been demolished, but a Realtor listing described one of the houses this way: "Not for the faint of heart."
That advice also could apply to the house at 689 E. Fourth St., a two-story home with a yellow exterior. A step inside last week quickly revealed fire damage that inspectors say will make renovation a challenge.
Among the required repairs documented by city officials:
Repair walls, ceiling and floors throughout.
Re-level structure as much as is practical.
Seal fire damage to control odors.
"Unfortunately, that building took one heck of a fire on the interior side," said Ken Eggers, a building inspector with the city. "They're going to have quite a job fixing that thing, but nevertheless, it can still be fixed."
The fire-damaged home is being offered for sale in part to test what sort of appetite the market has for such extensive renovations, said Sheryl Pemberton-Hoiby, project manager for the city. Someone might see value in working with the home's historic character, she said. But it's also possible that a buyer might purchase the home along with a property next door being sold for $5,000 and simply opt to tear down the fire-damaged structure and create a side yard for the other house.
Other homes being sold as part of the 4th Street Preservation Project offer more inviting interiors.
A few doors down from the fire-damaged house sits a home at the corner of Maria Avenue that features original woodwork around doorways, ceilings that are at least 10 feet high and a marble mantle. Asking price for the late-19th-century home: $50,000.
The program's goal is to entice purchasers to make investments in the properties that go beyond minimum standards and are mindful of historic preservation goals, said Carol Carey, executive director of Historic Saint Paul.
Prospective buyers must complete an application that is reviewed by the city's HRA. The agency will assist prospective buyers with the historic preservation rules, as well as rehabilitation plans. All properties available through the project are strictly for homeowner occupancy, the city says, and homes that were converted into duplexes are supposed to return to single-family use in most cases.
Because the homes are clustered near the west end of Fourth Street, organizers hope the 11 sales will create momentum that ultimately boosts property values throughout that portion of Dayton's Bluff.
"We're hoping it will have a catalytic effect," said Carey, of Historic Saint Paul.
Over the past two years, the city has spent about $550,000 to acquire the homes. If all 11 properties sell at the asking price, the city would collect about $165,000.
But the real payoff would come with the required renovations, said Biales, the aide to the city council president. Those repairs could bring private investment of nearly $1.7 million to the neighborhood, she said.
"If we do it right, it will be a three-to-one return on our investment, and that doesn't even count the intangibles that come with stabilizing the neighborhood," Biales said. "It's the city really spurring the private investments."
Natalie Fedie, a spokeswoman for the city, said the HRA bought the homes with money designated for neighborhood redevelopment efforts, including property acquisitions.
"This will encourage additional investment by other people in the neighborhood as they see the value of their property increase," she said. "So there's a long-term benefit, versus a short-term loss."
The emergence of the $1 home reflects a housing market that's trying to find a bottom to price declines.
For several years prior to 2009, no $1 properties were sold through the Regional Multiple Listing Service that covers the 13-county metro area, said Patrick Ruble, of the St. Paul Area Association of Realtors.
During the past 12 months, 14 properties in Minneapolis and St. Paul sold for $5,000 or less, said Aaron Dickinson, a real estate agent in Plymouth with Edina Realty. No homes in either city, he said, sold for such low prices during the period between 2000 and 2006.
"When you buy it for $5,000, that's less than the demolition cost would be," Dickinson said. "Some homes (in that price range) could be rehabbed, but the expenses are enough that there really isn't a lot of inherent value to them."
Christopher Snowbeck can be reached at 651-228-5479.
IF YOU GO
Six of the 4th Street Preservation Project homes will be on display during an open house from 4 to 8 p.m. Tuesday. The other five will be open from 4 to 7 p.m. Thursday.
City staff will be available at the homes to answer questions.
For more information, go to www.stpaul.gov/4thstpp or call 651-266-6115.
Check out the HRA Agenda for 26Aug09http://stpaul.granicus.com/AgendaViewer.php?view_id=40&event_id=2
The Money Pit will shock YOU
Bargain basement prices in a bargain basement city. Anyone with a brain wouldn't spend a 5 cents there. Maybe the next thing is that the city will start offering subsidies to people so they are willing to live there.
Buy a dilapidated house, spend $50k to get it fit for human habitation, drop your drawers, bend over and wait for the petting zoo that passes for city leadership to show up and screw you reeeeal good.
34% tax increase in three years, and more in the pipeline!
Oh, yeah baby; sign me up for that.
I wouldn't take a SP property on a bet.
Exploding government costs and regulation have killed the value of St. Paul housing to a point where now the exploding government needs to bribe people to buy a home there. Great plan.
What can we expect next? Maybe Senators that are afraid to meet the people they represent so they have video town halls? HAHAHAHAHA.
The DFL is shameful.
Jimmy.
The Mayor and City Council run everything in our town, condemning someone house and it becomes the whole block empty.
That's on the east side and that's Chuck's rehab area, if not the city council found a way to get that whole block and make money off of higher tax base per home.
Let us see who's been invested in the this area.
Let's start condemning homes and mansions along Summit Ave., then the governors mansion might be unfit to live in too.
The rich can stay in their homes and mansions while they are in repair, but they just tell the people to start fixing thing and maybe these code people get greased palms.
While all others in town gets the grease elsewhere, does that sound right.
What do people expect from the DFL, DFL money is backing this upcoming mayors race.
Money talk in St.Paul.
Eric said to me in 2002 about how much money is spent to get someone elected by the Democrats and the Republicans.
Why did Chris Coleman give up his lawyer license when he took office as mayor?
Did he plan on breaking laws, and didn't want any black marks on his license.
Over the years we have been seeing people that were entrusted with money getting greedy, almost $400,000 was taken by former judge, and he cannot explain why he stole; Roland Amundson pleaded guilty to taking money from trust fund.
Norm Coleman was Democrat and a lawyer, and next he wants to be governor.
Bill Dahn
There will be plenty more houses like this if this dirty town doesn't get control of its dirty cops.
A regular citizen doesn't have a chance. Not a stinkin chance against the city or its gangster cops.
I see $1.00 will buy you a home on Sharon's block, then pay $50,000 to rehab this home.
Then they will turn over the newly rehabbed home for $150,000 to $200,000 and laugh at the city.
Profit of $100,000 to $150,000
Maybe we should move the influx of people from other countries to that area.
Even a$1.00 wouldn't be a good enough deal to live on the same block with Sharon!~
This is the beginnings of New Detroit, or New Gary, formerly known as St. Paul.
They've put there political agendas into housing, and now will suffer the consequences.
Anonymous said... 10:23 AM
There will be plenty more houses like this if this dirty town doesn't get control of its dirty cops.
A regular citizen doesn't have a chance. Not a stinkin chance against the city or its gangster cops.
CODE of ETHIC
A reminder to all you nice people that turned their back on
Bill Dahn and his home, code inspector do as their bosses tell them.
Bill Dahn will do something about these crooks, that these elected politicians appointed.
We all know that these crooks thought Bill Dahn would just go away and shut up, I sure showed St.Paul and Minnesota's Government that "we" will stand up for ourselves.
We can't count on the police, or the boobs that run our town.
Billy Dahn plans to "change" the city government.
How you ask?
"First" termination of employment or layoffs of these people that violated your rights, I do intend on sharpening political wit of our people.
The St.Paul Code that is "NEVER enforced" by city government,
The Code of Ethic!
You can't even stay on subject in a simple blog conversation Bill. How the hell we supposed to think you could run a city?
11:35 PM- you sure have the mouth of a Democrap.
You wouldn't be the type of person I need on my side.
Put you name big mouth, lucking behind a DFL Norm or Chris Coleman.
We don't need trash on my side.
Billy D.
It would be my guess that you need whatever you can get on your side and I'm afraid that's still not going to be enough. The DFL will put up some slickster and Eric will get him elected. Your done before you even start Dahn.
Anonymous said...
Even a$1.00 wouldn't be a good enough deal to live on the same block with Sharon!~
HRA Chair Dave Thune gave the Salvation Army W.7th,Demo yet another bldg on Grand for parking Lot? Beautiful White Duplex, new roof,windows etc. Yesterday walking on Bates, Chris Coleman ran to the backyard to avoid me, His Camera Crew was notified of the BAD NEIGHBORHOOD.and CALL4CRIS RESIGNATION.
Dahn stay on topic of REALestate, as Sharon's ownership at 697 Surrey backyard of Bates is in grave danger. League of Woman Voters online READ IT
Affiant has been in Mortal Terror re Citys Contract with Sewer Firm in Missouri, Re: Betty Speaker's Condemnation started with Water Pipe's, Video as evidence estopped City's Attempt to Break the Water Main at the Street on Surrey & Bates Humble attempt to Video in parts re: Cash4Clunkers may give way to Cash4Condemnations.
Open House tonite Bates Property, looked like Repke in the Parks & Rec New Truck, No ID the young fellow had Hard Hat, Green Id etc.
Dave Thune Chair HRA, it may be assumable that Chuck Repke's NonProfit will try to sell the 275 Bates for one dollar and 279 Bates for 5 Thou or sell both as I
Repke only blogs at certain times, he does not want you to know of his Title 25 501c3 involvement with HRA; Propertys.
Sorry Sharon, I am on vacation this week. I have been out of town since Friday.
I don't work for the City, so, they won't let me drive their trucks...
The City is selling this property without a broker. So, I have no part in the sale.
JMONTOMEPPOF
Chuck Repke
how much is Dave Thune and Council President Kathy Lantry making on the deals
8:53 Think a minute. The City is selling some of these for a buck. How much money could anyone make out of that sale?
Most of these houses were bought in normal real estate transactions with the properties having for sale signs out front.
The City is trying to find a way to get owner occupants back into these houses by having them buy the houses for little or nothing and do the work themselves on the rehab. The City is doing that instead of having a non-profit group rehab the house and then sell it once they are repaired.
JMONTOMEPPOF
Chuck Repke
Chuck,
Think a minute. The City is selling some of these for a buck. How much money could anyone make out of that sale?
Up front? Nothing.
In terms of money from non-profits that the city is giving all sorts of property to?
The City is trying to find a way to get owner occupants back into these houses by having them buy the houses for little or nothing and do the work themselves on the rehab. The City is doing that instead of having a non-profit group rehab the house and then sell it once they are repaired.
Because there is such an avalanche of properties, because of a) foreclosures, and b) an out-of-control code enforcement division, and c) law-abiding, hard-working people leaving this insane asylum for ANYWHERE they can afford to go, that even all of Kathy Lantry's and Dave THune's non-profit buds can keep it all busy.
Like me. The moment I can afford to leave, I'm leaving this fucking corrupt plague ship of a city. Most of my tax-paying friends who still live here - and there are precious few anymore - think the same.
I love this city. But I hate its government.
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