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Purchase of Propert from Milton E. Schwartzrx~ crrY of Dubuque ~,~ " " ~~~ ~ NI-An~ricaCi~ ,. Masterpiece arr the Missrssi~~pi zoo? TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Commercial Property Purchase for the Bee Branch Restoration Project DATE: October 14, 2008 City Engineer Gus Psihoyos recommends City Council approval to purchase a commercial property on Maple Street owned by Milton E. Schwartz for $122,000. An independent appraisal established the fair market value at $120,000, and Mr. Schwartz has accepted an offer for purchase in the amount of $122,000, $2,000 more than the appraised value. This purchase is part of the acquisition program associated with the Bee Branch Creek Restoration Project. I concur with the recommendation and respectfully request Mayor and City Council approval. v r~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer THE CITY OF Dubuque --~ ~~ DT TR ~ AN•AmericaCiry ~J L! ~ ' Masterpiece on the Mississippi w 2007 TO: Michael Van Milligen, City Manage FROM: Gus Psihoyos, City Engineer SUBJECT: Commercial Property Purchase for the Bee Branch Restoration Project DATE: October 14, 2008 INTRODUCTION The purpose of this memorandum is to request City Council approval to purchase a commercial property on Maple Street owned by Milton E. Schwartz as 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, Nebraska). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. 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. In 2005, the City Council authorized the City Manager to enter into a contract with Graham Land Acquisition Associates (now JCG Land Services, Inc.) to assist with the acquisition of the commercial properties south of 16th Street required for the Bee Branch project. DISCUSSION An independent appraisal of the properties owned by Milton E. Schwartz legally described as Lot 291 East Dubuque Addition, 1547 Maple & 574 East 16th Street, all in the City of Dubuque, Dubuque County, Iowa has established the market value at $120,000. Mr. Schwartz has accepted an offer for purchase in an amount of $122,000, $2,000 more than the appraised value. RECOMMENDATION I recommend that the City purchase the property for $122,000. BUDGET IMPACT The purchase will be funded from the FY2009 appropriation of $3,902,395 for property acquisitions for the Bee Branch Creek Restoration Project (CIP#7201654). ACTION TO BE TAKEN I respectfully request adoption of the attached property on Maple Street owned by Milton E East Dubuque Addition, 1547 Maple & 574 E. Dubuque County, Iowa. resolution authorizing the purchase of the . Schwartz legally described as Lot 291 st 16th Street, all in the City of Dubuque, Prepared by Deron Muehring, Civil Engineer II cc: Jenny Larson, Budget Director RESOLUTION NO. 368 -08 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY MILTON E. SCHWARTZ IN THE CITY OF DUBUQE Whereas, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 HDR "Drainage Basin Master Plan;" and Whereas, a purchase agreement has been finalized with the owner of the property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves -the acquisition of the following legally described property: Lot 291 East Dubuque Addition, 1547 Maple & 574 East 16th Street, all in the City of Dubuque, Dubuque County, Iowa At the cost of One Hundred Twenty Two Thousand and 00/100 Dollars ($122,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim deed from the owner, conveying the owner's- interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. Passed, approved and adopted this 20th day of October, 2008. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk