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Bee Branch Creek Rest. Project Purchase of Property_Milton Schwartz & G&S Real EstateTHE CTTY OF Dubuque ~---~ DuB E A~~~~~~ r Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration Project, Purchase of Property Owned by Milton E. Schwartz and property owned by G & S Real Estate DATE: September 30, 2008 City Engineer Gus Psihoyos recommends City Council approval of resolutions establishing the fair market value of the property owned by Milton E. Schwartz (1547 Maple and 574 East 16th Street, appraised at $120,000) and property owned by G & S Real Estate (Lot 289 East Dubuque No. 2, appraised at $32,500) and authorizing the City Manager and the City Attorney to commence negotiations to acquire the property required for the Bee Branch Creek Restoration Project. The owners have been unwilling to sell their property for the appraised value. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer THE CTTY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer ~ . Dubuque AN-Amedcal~tY 2007 September 30, 2008 SUBJECT: Bee Branch Creek Restoration Project, Purchase of Property Owned by Milton E. Schwartz and property owned by G & S Real Estate INTRODUCTION The purpose of this memo is to establish the fair market value of property owned by Milton E. Schwartz and property owned by G & S Real Estate and seek authorization for the City Manager and City Attorney to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. BACKGROUND In December of 2001, the City Council formally adopted the Drainage Basin Master Plan (DBMP) prepared by HDR Engineering (Omaha, NE). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. The DBMP recommends several capital improvement projects that would reduce the threat of flood damage in the Bee Branch Creek Watershed. They are the Carter Road Detention Basin that was completed in the spring of 2004, the W. 32nd Street Detention Basin that is currently under construction, and the Bee Branch Creek Restoration Project from 16th Street to 24th Street that is currently under design. In December of 2004, the City Council established the alignment for the Bee Branch Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington Streets, and established a building permit moratorium for the properties impacted based on the alignment. The alignment established the properties necessary to be acquired for the Bee Branch Creek Restoration Project. DISCUSSION These two properties owned by Milton E. Schwartz and property owned by G & S Real Estate were identified for acquisition in the project alignment approved by the City Council. The pro~erty legally described as Lot 291 East Dubuque Addition, 1547 Maple and 574 East 16 h Street was appraised at $120,000.00. The property legally described as Lot 289 East Dubuque No. 2 in the City of Dubuque was appraised at $32,500.00. The owners have been unwilling to sell their property for the appraised value. RECOMMENDATION I recommend that the City establish the fair market value of the property owned by Milton E. Schwartz and property owned by G & S Real Estate at the appraised value and that the City Manager and City Attorney begin negotiations with the property owners. BUDGET IMPACT The FY2009 budget included $3,902,395 for the property acquisitions associated with the Bee Branch Creek Restoration Project. ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolutions establishing the fair market value of the property owned by Milton E. Schwartz and property owned by G & S Real Estate and authorizing the City Manager and City Attorney to commence negotiations to acquire these properties. Attach. Prepared by Deron Muehring cc: Barry Lindahl, City Attorney Deron Muehring, Civil Engineer II RESOLUTION NO. ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY OWNED BY MILTON E. SCHWARTZ IN THE CITY OF DUBUQUE, IOWA. WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by Milton E. Schwartz (Owner), legally described as follows (the Property): Lot 291 East Dubuque Addition, 1547 Maple & 574 East 16th Street, all in the City of Dubuque, Dubuque County, Iowa as shown on Exhibit A attached hereto for the purpose of the stormwater conveyance associated with the restoration of the Bee Branch Creek; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with the Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City has caused an appraisal of the property to be made and the appraised value of the property is $120,000.00; AND WHEREAS, the City Council now desires to establish the fair market value of the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 1. The fair market value of the Property is hereby established to be $120,000.00. 2. The City Manager and the City Attorney are hereby authorized to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this resolution. Passed, approved and adopted this day of , 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC City Clerk RESOLUTION NO. ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY OWNED BY G 8~ S REAL ESTATE IN THE CITY OF DUBUQUE, IOWA. WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by G 8~ S Real Estate (Owner), legally described as follows (the Property): South One-half Lot 289 East Dubuque No. 2, in the City of Dubuque, Dubuque County, Iowa as shown on Exhibit A attached hereto for the purpose of the stormwater conveyance associated with the restoration of the Bee Branch Creek; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with the Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City has caused an appraisal of the property to be made and the appraised value of the property is $32,500.00; AND WHEREAS, the City Council now desires to establish the fair market value of the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 1. The fair market value of the Property is hereby established to be $32,500.00. 2. The City Manager and the City Attorney are hereby authorized to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this resolution. Passed, approved and adopted this day of , 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC City Clerk