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Brewery Property, AspermontCITY OF DUBUQUE, IOWA MEMORANDUM April 12, 2001 TO: Mayor Pro Tem John Markham and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Brewery Attached is a resolution authorizing the Corporation Counsel to proceed with the acquisition of the property referred to as the Dubuque Star Brewery Property by eminent domain proceedings. The Brewery property is owned by the Aspermont Company, but is subject to the interests of American Grain and Related Industries (Agri) and the Crompton Corporation pursuant to a rather complicated lease-sublease arrangement. On March 19, 2001, the City Council by Resolution No. 103-01 established the fair market value of the property at $1,390,000 pursuant to appraisals of the property by two local appraisal firms. On March 20, 2001, copies of the appraisals were sent to the Aspermont Company, Agri, and Crompton Corporation. After the required statutory waiting period, an offer to purchase the property for $1,390,000 was sent to Aspermont, Agri and Compton. A copy of the offer letter is attached. The Corporation Counsel has had several discussions with counsel for Agri with respect to purchasing Agri's interest in the property. However, we have had no substantive response to our offer from Aspermont or Crompton. Because of the complicated ownership interests, it is not likely that the City will be able to reach an agreement with all three interested parties to purchase the property. I respectfully recommend that the City Council adopt the enclosed resolution authorizing commencement of the eminent domain process. We will of course remain open to any response we may receive from the interested parties. Michael C. Van Milligen MCVM/jh Attachment CC: Barry Lindahl, Corporation Counsel RESOLUTION NO. 154-01 AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY OWNED BY THE ASPERMONT COMPANY BY EMINENT DOMAIN WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by the Aspermont Company (Aspermont), legally described on Exhibit A attached hereto (the Property); AND WHEREAS, City has caused an appraisal of the Property to be made and has established the fair market value of the Property as $1,390,000; AND WHEREAS, City has offered to purchase the Property for the fair market value but has not been able to reach agreement with Aspermont and the other interested parties. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOWS: 1. The Corporation Counsel is hereby authorized to commence eminent domain proceedings to acquire the Property. Passed, approved and adopted thi~~/ Terrat/ce M. Duggan, ~layl/ Attest: ~feaune F. Schneider, City Clerk LEGAL DESCRIPTION PARCEL I Lots 5, 6, 7, 8, 9 and 10, in Block 3; the parts of lots 2, 3 and 4, in Block 3 not included in Fourth Street; Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 in Block 4; Lots 1, 2, 3, 4, 5, and 6, in Block 5; the parts of lots 7, 8 and 9, in Block 5, not included in Fourth Street; Lot 1 of lot 10, the unnumbered part of lot 10 not included in Fourth Street, Lot 1 of lot 11, the unnumbered part of lot 11 not included in Fourth Street, and, Lot 1 of lot 12, in Block 5; Lots 13, 14, 15, 16, lot 1 of lot 17, lot 1 of lot 18, lot 1 of lot 19, in Block 6; Lot 1 of lot 20, The unnumbered part of lot 20 not included in Fourth Street, Lot 1 of lot 21, the unnumbered part of lot 21 not included in Fourth Street, all of lots 22 and 23 not included in Fourth Street, and Lot 1 of lot 24, in Block 6; Lot 38, lot 1 of lot 34, lot 1 of lot 35, lot 1 of lot 36, and lot 1 of lot 37, in Block 11; in Dubuque Harbor Improvement Company!s Addition to the City of Dubuque, Iowa, according to the recorded Plats thereof. PARCEL II Lots 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, the urmumbered part of lot 13 not included in Fourth Street, and the unnumbered part of lot 14 not included in Fourth Street, in Block 5, in Dubuque Harbor Improvement Company's Addition to the City of Dubuque, Iowa, according to the recorded Plats thereof. PARCEL III Lot 1 of Riverwalk 2nd Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof. PARCEL IV The vacated portion of Tower Street from the north line of Wall Street to the South line of East Fourth Street Extension; The vacated alley in Block 5; The vacated portion of Pine Street from the Levee to Bell Street; The vacated portion of the alley from the west side of lot 34 to the east side of lot 38, in Block 11; The vacated alley in Block 6; in Dubuque Harbor Improvement Company's Addition, in the City of Dubuque, Iowa, according to the recorded Plats thereof. APr.12. 2001 2:,54PLY BARRY ~ L]NDAHL, ESQ No 3209 P 2/3 Marcl129,2001 Aspermoat Company Odo Michael Stapleto~, Esq. 714l Pine Drive East Dubuque: lL 61026 American Grim and Related Industries Cio Hallie Still-Cads, F~q. Nyemast~-, Godde, ¥oigts, West, Hansell & O'Brien 700 Walrmt. Suite 1600 Des Moines, IA 50309 Crompton Corporation C/o John T. Ferguson 1~ Esq. One American Lane Greenwich, CT 06831 The Cky of Dubuque hereby offers to purchase the prope.~od described in the attaohed legal description for the snm total of $1,390,000, cash at closing, free and dear of all lier~, restrictions and encumbrances. This offer conmmplates the parties entering into a formal pur~ha~ agreement approved by the City Council, including a Phase I and Phase 1I e~avironmental study acceptable to the City. Corporation Counsel Cc: Michael Van Millige~ City Mauager Service PeOple Integrity R~poaslbikity Innovatio~ Teamv/o~k Ao'.'2. 200' 2:54PM BARRY A L]NDAHL, ESQ No.3209 P. 3/3 LE6AL DESCRI/~ON PARCEL I Lots 5, 6, 7, 11, 9 and 10, in Bl0ck 3; tho pans of lots 2, 3 and 4, in Block 3 not included in Fourth Street; Lots I, 2, 3, 4, 5, 6, 7, $, 9, 10 in Block 4; Lot~ 1,2,3, 4, 5, and 6, in Block 5; the parts of lots 7, $ and 9, in Block 5, not included in Fourth Street; Lot 1 of lot thc mmumbered part of lot 10 not included in Fourth Str~ Lot 1 oflot Il, the unnmb~d part of lot 11 not inolmled in Fourth Streeh and, Lot I of lot t2, in Block 5; Lots 13, 14, 15, 16, lot 1 eliot 17, lot 1 oflot 18, lot 1 oflot 19, in Block 6; Lot 1 oflot 20, Ihe n.mm:~red Fa~ of lot 20 not included in Fom/h Street, Lot 1 of lot 21, the unnmnbc~l pa~ of lot 21 not included in ~outth Street, all of lots 22 and 23 not included in Fourth Strew:% and Lot 1 o/'lot 24, in Block Lot 38, lot 1 of lot 34, lot 1 of lot 35, lot 1 of lot 36, and lot I of lot 37, in Block 11; in Dubuque Harbor Improvem ~at Campmy's Addition to the Cigr of Dubuq~, Iowa, according to the recorded Plats thereof, PARCEL II Lots 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, the ~mn~nnbe~ed lmrt of lot 13 not included in Fourth Street, and the unnmnbcred part of lot 14 not included in Fomth S/met, in Block 5, in Dubuque l-Iarb~ Impmvcm~ Company's Addition to the City of Dubuque, Iowa, according to the recorded Plats thereo/[ PARCEL Lot 1 'of Rivmvalk 2nd Addition ~ thc City of Dubuque, Iowa, according to thc recorded Plat thereof. PARCEL IV The vacated portica of Tower Street from thc nozth line of Wall Street to the South lin~ of East Fourth Street Extension; The vacated alley in Block 5; The vacated portion of Pine Strc~ f~mn the Levee to Bell Stree~ The vacated portion of the alley lmm the west side of lot 34 to the east side of lot 38, hz Block 11; The vacatmi alley in Block 6; hz Dulmque Harbor Impmvemant Company'~ Addition, in the C/ty of Dubuque, Iowa, according to thc r~cO'~cted Plats thcreo£