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Purchase of 1001 Garfield Avenue Copyrighted November 2, 2020 City of Dubuque Consent Items # 12. City Council Meeting ITEM TITLE: Purchase of 1001 Garfield Avenue SUM MARY: City Manager recommending authorization to acquire land located at 1001 Garfield Avenue from Berach Land Holdings 20, LLC forthe purpose of combining the lot with the property at 1908 Schiller Street, making that lot more desirable for building a new affordable home for an income-qualified homebuyer. RESOLUTION Approving the Acquisition of Real Estate Owned by the Berach Land Holdings 20, LLC, a Nebraska Limited Liability Company at 1001 Garfield Avenue in the City of Dubuque. SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type 1001 Garfield Purchase-MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Approving Purchase Resolutions Purchase Agreement Supporting Documentation Dubuque THE CITY OF � ui-Aseria cih DuB E , . � . , � II � Maste iece on tj2e Mississi i zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of 1001 Garfield Avenue DATE: October 26, 2020 Housing & Community Development Director Alexis Steger requests City Council authorization to acquire land located at 1001 Garfield Avenue from Berach Land Holdings 20, LLC for $2,000 for the purpose of combining the lot with the property at 1908 Schiller Street, making that lot more desirable for building a new affordable home for an income-qualified homebuyer. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE CITY OF Dubuque � D V L E AI�-nmericaCiqi � � � ► Masterpiece on the Mississippi zoo,.Zo1z.2o13 TO: Michael Van Milligen, City Manager FROM: Alexis Steger, Director Housing & Community Development Department SUBJECT: Purchase of 1001 GarField Avenue DATE: October 22, 2020 Introduction The purpose of this memorandum is to request City Council authorization to acquire the land located at 1001 GarField Avenue for the purpose of combining the lot with the property located at 1908 Schiller Street, making that lot more desirable for building a new affordable home for an income-qualified homebuyer. Background As part of continued efforts to rehab blighted properties, the City was approached by the Berach Land Holdings 20, LLC a Nebraska Limited Liability Company and requested that the City purchase 1001 GarField Avenue. An agreed upon purchase price has been established for $2,000. Discussion The City owns a very small parcel at 1908 Schiller Street with a property on it that is in disrepair. By combining the parcel at 1001 Garfield Avenue with 1908 Schiller Street it will make this land much more desirable to build a new affordable home for an income qualitied homebuyer and help improve the neighborhood. It is a blighted influence on the block and will hinder our efforts to rehabilitate other homes to new purchaser families. We intend to construct a new home and sell it as part of the homeownership initiative. This also meets the Voluntary Compliance Agreement (VCA) of increasing homeownership opportunities for low-moderate income households. Action Step The action requested of the City Council is to approve the attached resolution approving the purchase agreement and acceptance of the deed for the property located at 1001 GarField Avenue, from Berach Land Holdings 20, LLC a Nebraska Limited Liability Company, for $2,000. KLN Attach. Prepared by Alexis Steger, Housinq & Community Devel., 350 W. 6th St., Suite 312, Telephone: 563-690-6072 Return to: Adrienne N., Breitfelder, City Clerk Address: City Hall- 50 W. 13th St Telephone: (563) 589-4100 RESOLUTION NO.331-20 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY THE BERACH LAND HOLDINGS 20, LLC A NEBRASKA LIMITED LIABILITY COMPANY AT 1001 GARFIELD AVENUE IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate for the purpose of combining two parcels to construct a new home and resell to an income qualified household; and Whereas, the acquisition of this property is a voluntarily negotiated purchase by the City of Dubuque under Section 613.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 613 of the Code of Iowa; and Whereas, a purchase agreement has been finalized with Berach Land Holdings 20, LLC a Nebraska Limited Liability Company of the property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. That the City of Dubuque hereby approves the agreement for and acquisition of the following legally described property: The Easterly 93.5 feet of Lot 5 in T. McCraney's Second Addition to Dubuque in the City of Dubuque, Iowa, according to the recorded plat thereof At the cost of Two Thousand Dollars ($2,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from Berach Land Holdings 20, LLC a Nebraska Limited Liability Company, conveying the owner's interest of the property 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 Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Passed, approved and adopted this 2nd day of November, 2020. oy D. Buol, Mayor ATTEST: Adrienne N. Breitfelder, City Clerk �����A�� �G���M�N� This Purchas� Agreement ("Agreement") is entered into on 12'�' day of October, 202Q by �nd b�tween Berach L.�nd t-�oldings 2Q, LLC a N�braska Limited Liability Campany, at 13575 Lyn�m Drive, Orn�ha, NE 68138, (hereinafter "S�LLER"), and City af C�ubuque, 350 W. 6t" Street, Dubuq�ae, IA 52001 (hereinafter "PURCHAS�R"), S�L.L.EF� h�reby �grees ta sell ta PURCHASER the followinc� property legally descrik�ed as: The Easterly 93.5 feet of L.at 5 in T. McCr�ney's Second Additian to Dubuqu� in the Cifiy af Dubuqu�, lowa, ��carding to the recorded pl�t thereof. Commonfy known �s: 10Q1 G�rfield Ave, LJubuque, IA 520Q1 (1118351016) inr.ludin� all fixfiure� and equipmenfi p�rm�nently attached tQ th� Property. Th� only persanal �raperty included is as fnllows: N/A. 1. PURGhI�S�F2 agrE�s to p�y �I"wa Thca�.���i��l l�a T��II�r°s��C�C�.QCt�. Balance to be paid �t Closing. 2. Sf'LL�R �gr��:s tc� �anvey title to Prop�rty fia I'URCNASE�t ar h�is naminees by quik cl�im deed subject #o all building and use res4riction�, utility e�s�m�nts not exc�eding fen (10) fe�t in width �butting the bound�ry af th� Prop�rty, and cov�;n�nts now of r�corc�. �. I'URCHAS�R ia responsik�le to p�y �ny assessments far p�vinc� curb, sidewalk ar utiliti�s previously can�truc�ed, now under constructian, or ordered or required to be cQnstruct�d by public authc�rity but not yet �ss�ssed. 4. PURCHAS�R agrees th�t the Praperty is sold AS IS, WFI�R� IS, WITH ALL fT'S FAU�.TS, and th�t SELL�� m�kes no gu�r�nties, warranties, represent�tions, expr�ss or impli�d, �s tp the char�c#�r, description or condition af th� Property. 5. This Agr�em�nt sh�ll be construed and gaverned by the subskantive laws af the Stat� of lowa. 6. T�xes. �. S�LL�RS shall pay all r�;al estate tax�s that �re due and pay�ble as af the d�t� nf possession which constitute � lien against the Prnperty, including any unp�id real est�te taxes for any prior years. b. SCLLERS sh�ll pay their prarated sh�re, bas�d upon the date of p�assessian, of the re�al est�te taxes far the fiscal year in which possessic�n is giv�n (�:nding Jun� 30} due and payable in the subsequ�rtt fiscal year (comm�ncing July 1). c. E3UYERS shall be giv�r� a cr�dit far such proration at closing based upon the last known �ctual net real estate taxes pay�ble according to public recc�rd. How�ver, if such t�xes are based upon � partial asse�sment of the present property improv�ments or � ch�nged tax classification as of th� d�te of possessi�n, such prar�tion shall be bas�d on the current millagF rate, th� ass�ssed value, IegislativP tax rallbacks ��7d r��l estate #�x ex�mptions that will actu�ily be �pplicabl� as sr�awn by th� Assessor's Records �n th� dafi� of possession. d. F3UYkRS sh�ll p�y all subsequent real �state tax�s. 7. Closing Costs.: No closing co�ts sh�ll be the r�sponsibility of the PURCHAs�f�_ ���.1.,�� will p�y �c� r�:corcl ���d, 8. PURCHA a�R �cknowl�dges that th�re will b� na inspections, surveys, �tc. conducted unl�ss �t the expens� of the F'URCHAiFR. 9. Title and �scraw: f�URC�A�EI� aqr�es that all c�uiet titl� �nd insur�nc� shall be the respansibility of th� PUfZCHASEFt and PURCI�,�S�R shall accept Property with na warranti�s �s tc� the condition of title. 10.Clasing. �losing date to b� c�n or b�fore Nov�rnber 30, 2020 or sooner, and �anss�ssion date to be closir�g d�fie, ar �s mutu�lly agr�ed to in writing by �ELLER and PURGh�ASEf�, clt � Q�C�aCk P.M. 11.Contr�ct is subj�:ct ta: a. �Qrach �.�nd Holdings 20, LL.0 obt�ining �(��x G�eed b. City o�at�ining �n acc�ptable titl� and lien s��rch shawing mark�table title in Ber�ch L�nd Holcling� with n� liens �gainst th� property except for prop�rty t�x�5. c. Approval af the City C�uncil fcar the City o�F Dubuqu�. 12.As is, nn warrantie;�. Thi� Purch�s� 1�gr�ement is b�s�d upon PURCFiASE�i'S person�l inspectic�n or investigatiari of the Prop�rfiy and nat upc�n any repres�ntation or warranties of condition by fihe S�i_L�R or his �gent 13.�isk of Loss anc� Insur�n��. Any risk of loss to the F'roperty shall be bome by th� SCLL�F� until title has been conveyed ta th� �Uf�CHASER. In the ev�nt, prior ta closing, the structures on the Pra�aerty �re m�tsri�lly d�m�g�d by fire, explosian car �ny nth�r c�use, PUF2CH�a�.F� shall h�ve the right to rescind this Agre�m�nt, and 5�LL�:F2 shall then refund any deposit ta F'UF�Ch���FR. IN WI"1"N�SS WI-IEI�EOF, SEL�.ER �nd PURCMASER hav� �xecut�d this Agreem�nt the day �nd year �bnve writt�n. PUhCHA�GR: City nf C7ubuque \ Alexis teger, irector of Housing& Community Development i (� �-- 2 ► -�.G�� Date SELLER: Berach Land Holding 20, LLG, a Nebraska Limited Liability Company By: Guardian Tax Partners, Inc., a Nebraska Corporation , y Jare tli�#�lollit�g�r resid�nt ,r' I �� f°>'z� Date�� Doc ID: 010696900003 Type: GEN Kind: DEED WITH RESOLUTION Recorded: 03/18/2021 at 02:57:02 PM Fee Amt: $24.40 Page i of 3 Revenue Tax: $2.40 Dubuque County Iowa John Murphy Recorder F11e2021-00004264 3 QUIT CLAIM DEED Return to: City of Dubuque, Iowa, 50 West 13th Street, Dubuque, Iowa 52001 ;. Taxpayer: City of Dubuque, Iowa 50 West 13th Street Dubuque, Iowa 52001 fs°clXV V° Preparer:Crenna Brumwell City Attorney, City of Dubuque, Iowa 50 -t t, v %\,if , I A For the consideration of Two Thousand Dollar(s) and other valuable consideration, Berach Land Holdings 20 LLC do hereby Quit Claim to City of Dubuque, Iowa all our right, title, interest, estate, claim and demand in the following described real estate in Dubuque County, Iowa: The Easterly 93.5 feet of Lot 5 in T. McCraney's Second Addition to Dubuque in the City of Dubuque, Iowa, according to the recorded plat thereof Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the real estate. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. (Grantor) STATE OF ,Qd , COUNTY OF " This record was ackn9vyled d before me on , by LAURELLTRAPP General Notary — State of Nebraska My Commission Expires Apr 20, 2021 © The Iowa State Bar Association 2019 IowaDocs® (Grantor) (Grantor) (Grantor) ignature of Notary Public Form No. 106, Quit Claim Deed Revised February 2019 �'5: �� 4 o F -D3� Clerk Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6"' St., Suite 312, Telephone: 563-690-6072 Return to: Adrienne N., Breitfelder, City Clerk Address: City Hall- 50 W. 131" St Telephone: (563) 589-4100 RESOLUTION NO.331-20 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY THE BERACH LAND HOLDINGS 20, LLC A NEBRASKA LIMITED LIABILITY COMPANY AT 1001 GARFIELD AVENUE IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate for the purpose of combining two parcels to construct a new home and resell to an income qualified household; and Whereas, the acquisition of this property is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, a purchase agreement has been finalized with Berach Land Holdings 20, LLC a Nebraska Limited Liability Company of the property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. That the City of Dubuque hereby approves the agreement for and acquisition of the following legally described property: The Easterly 93.5 feet of Lot 5 in T. McCraney's Second Addition to Dubuque in the City of Dubuque, Iowa, according to the recorded plat thereof At the cost of Two Thousand Dollars ($2,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from Berach Land Holdings 20, LLC a Nebraska Limited Liability Company, conveying the owner's interest of the property 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 Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Passed, approved and adopted this 2nd day of November, 2020. /, oy D. Buol, Mayor ATTEST: Adrienne N. Breitfelder, City Clerk CERTIFICATE of the CITY CLERK STATE OF IOWA SS: COUNTY OF DUBUQUE ) I, Adrienne N. Breitfelder, City Clerk, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 331-20 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 16th day of March 2021. Adrienne N. Breitfelder, City Clerk Doc ID: 010696910002 Type: GWH Kind: GROUNDWATER HAZARD Recorded: 03/18/2021 at 02:57:16 PM Fee Amt: $0.00 Page 1 of 2 Dubuque County Iowa John Murphy Recorder File2021-00000397 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name Berach Land Holdings 20 LLC Address 13575 Lynam Drive, Omaha, NE 68138 Number and Street or RR City, Town or P.O. State Zip TRANSFEREE: Name City of Dubuque, Iowa Address 50 West 13th Street, Dubuque, IA 52001 Number and Street or RR City, Town or P.O. State Zip Address of Property Transferred: 1001 Garfield Avenue, Dubuque, IA 52001 Number and Street or RR City, Town or P.O. State Zip Legal Description of Property: (Attach if necessary) The Easterly 93.5 feet of Lot 5 in T. McCraney's Second Addition to Dubuque, in the City of Dubuque, Iowa, according tote recorded plat thereof 1. Wells (check one) There are no known wells situated on this property. _ There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below or set forth on an attached separate sheet, as necessary. 2. Solid Waste Disposal (check one) There is no known solid waste disposal site on this property. _ There is a solid waste disposal site on this property and information related thereto is provided in Attachment #1, attached to this document. 3. Hazardous Wastes (check one) There is no known hazardous waste on this property. _ There is hazardous waste on this property and information related thereto is provided in Attachment #1, attached to this document. 4. U derground Storage Tanks (check one) There are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are listed below or on an attached separate sheet, as necessary. FILE WITH RECORDER DNR form 542-0960 (July 18, 2012) 'ZozI -qz(q 5. Private Burial Site (check one) There are no known private burial sites on this property. _ There is a private burial site on this property. The location(s) of the site(s) and known identifying information of the decedent(s) is stated below or on an attached separate sheet, as necessary. 6. Private Sewage Disposal System (check one) j All buildings on this property are served by a public or semi-public sewage disposal system. _ This transaction does not involve the transfer of any building which has or is required by law to have a sewage disposal system. There is a building served by private sewage disposal system on this property or a building without any lawful sewage disposal system. A certified inspector's report is attached which documents the condition of the private sewage disposal system and whether any modifications are required to conform to standards adopted by the Department of Natural Resources. A certified inspection report must be accompanied by this form when recording. There is a building served by private sewage disposal system on this property. Weather or other temporary physical conditions prevent the certified inspection of the private sewage disposal system from being conducted. The buyer has executed a binding acknowledgment with the county board of health to conduct a certified inspection of the private sewage disposal system at the earliest practicable time and to be responsible for any required modifications to the private sewage disposal system as identified by the certified inspection. A copy of the binding acknowledgment is attached to this form. There is a building served by private sewage disposal system on this property. The buyer has executed a binding acknowledgment with the county board of health to install a new private sewage disposal system on this property within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9] This property is exempt from the private sewage disposal inspection requirements pursuant to the following exemption [Note: for exemption #9 use prior check box]: The private sewage disposal system has been installed within the past two years pursuant to permit number Information required by statements checked above should be provided here or on separate sheets attached hereto: 1 HEREBY DECLARE THAT I HAVE REVIEWED THE INSTRUCTIONS FOR THIS FORM AND THAT THEJNEQRMATION STATED ABOVE IS TRUE AND CORRECT. Signature: _ `/ / %/ Telephone No.: (402) 505-9473 H rans eror or A200 FILE WITH RECORDER DNR form 542-0960 (July 18, 2012)