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Purchase of Property from G&S Real EstateTHE CITY OF Dubuque AN-Am~icaCily DUB E Mastet~piece on the Mississippi 2007 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 G & S Real Estate for $34,500. An independent appraisal established the fair market value at $32,500, and G & S Real Estate has accepted an offer for purchase in the amount of $34,500, $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 Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer THE CITY OF D~ubu~q..u.~e A~-Am~ii~:> DUB E Masterpiece on the Mississippi 2007 TO: Michael Van Milligen, City Mana e 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 G & S Real Estate 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 G & S Real Estate legally described as the South One-Half Lot 289 East Dubuque No. 2 in the City of Dubuque, Dubuque County, Iowa has established the market value at $32,500. G & S Real Estate has accepted an offer for purchase in an amount of $34,500, $2,000 more than the appraised value. RECOMMENDATION I recommend that the City purchase the property for $34,500. 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 resolution authorizing the purchase of the property on Maple Street owned by G & S Real Estate legally described as the South One-Half Lot 289 East Dubuque No. 2 in the City of Dubuque, Dubuque County, Iowa. Prepared by Deron Muehring, Civil Engineer II cc: Jenny Larson, Budget Director RESOLUTION NO. 369 -08 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY G & S REAL ESTATE IN TFiE CITY OF DUBUQUE 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: South One-Half Lot 289 East Dubuque No. 2, in the City of Dubuque, Dubuque County, Iowa. At the cost of Thirty-Four Thousand Five Hundred and/00 Dollars ($34,500.00). 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