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Expansion of Four Mounds Park: Acquisition of Four Mounds FarmCity of Dubuque City Council Meeting Consent Items # 14. Copyrighted January 18, 2022 ITEM TITLE: Notice of Award and Grant Agreement Execution for Expansion of Four Mounds Park: Acquisition of Four Mounds Farm SUMMARY: City Manager transmitting information on the award of Expansion of Four Mounds Park: Acquisition of Four Mounds Farm and recommends City Council approval of the grant agreement. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type Four Mounds Farm Acquisition-MVM Memo City Manager Memo Staff memo Staff Memo Grant Agreement Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Notice of Award and Grant Agreement Execution for Expansion of Four Mounds Park: Acquisition of Four Mounds Farm DATE: January 11, 2022 Leisure Services Manager Marie Ware is transmitting information on the award of Expansion of Four Mounds Park: Acquisition of Four Mounds Farm and recommends City Council approval of the grant agreement. 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 Marie Ware, Leisure Services Manager THE CITY OF D __B E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie Ware, Leisure Services Manager Dubuque AFArkt C" 2007-2012.2013 2017*2019 SUBJECT: Notice of Award and Grant Agreement Execution for Expansion of Four Mounds Park: Acquisition of Four Mounds Farm DATE: January 10, 2022 INTRODUCTION The purpose of this memorandum is to provide information on the award of Expansion of Four Mounds Park: Acquisition of Four Mounds Farm and request to approve the grant agreement. DISCUSSION In accordance with IDNR guidelines for land acquisition using REAP funds, the City has obtained an appraisal of the Four Mounds Farm from a qualified appraiser. The estimated market value of the subject property is $546,000. Incidental costs of $5,200 include the actual appraisal cost of $2,200 and a future Phase 1 Environmental Site Assessment (ESA) for potential hazardous substances (such as lead paint and asbestos) estimated to cost $3,000. The total estimated project costs are $551,200. Phased Land Acquisition & Funding Land acquisition is intended to occur in two phases in 2022 as the City of Dubuque seeks two IDNR grant funds totaling $375,000 for land acquisition. Any remaining dollars, after the grants, would come from the City's Greater Downtown Tax Increment Financing (TIF) and any remaining fund balances as we close out the FY 2021 budget. Total City funding is estimated at $181,400. This is 33% of the total estimated costs of $551,200. The planned sequence of IDNR grant applications and use of City funding is as follows. Phase 1 land acquisition. • In August 2021, apply to IDNR for a $200,000 REAP grant. The REAP grant agreement is expected by January 2022. • City share would be $2,200 for the appraisal. Phase 2 land acquisition. • In March 2022, apply to IDNR for a $175,000 federal pass -through grant from the Land and Water Conservation Fund (LWCF) Program. The LWCF requires a 1.1 match of $175,000. The LWCF grant agreement is expected by July 2022. • In August 2022, conduct a Phase 1 ESA of the residence and associated outbuildings for potential hazardous substances (such as lead paint and asbestos). Within six months of approval of the Phase 1 ESA, the City would need to complete acquisition. Closing on Four Mounds Farm and transfer of INHF conservation easement is expected to be completed by December 2022. • City share would be an estimated $3,000 for the ESA and $171,000 for the remaining land acquisition cost, for a total cost estimate of $174,000 in Phase 2. The estimate of total project cost is as follows: Project Phase Land Acquisition Incidental Costs Subtotals City Share Grants Phase 1 $200,000 $2,200 $202,200 $2,200 $200,000 Phase 2 $346,000 $3,000 $349,000 $174,000 $175,000 Total Costs $546,000 $5,200 $551,200 $176,200 $375,000 The project funding summary is as follows: Funding Source Fund Description Fund Amount City of Dubuque Greater Downtown TIF and FY 2021 unspent funds $176,200 IDNR FY 2022 REAP Grant $200,000 IDNR FY 2023 LWCF Grant $175,000 Total Funds $551,200 COMMUNITY ENGAGEMENT The City's 2017 comprehensive plan, Imagine Dubuque 2037: A Call to Action, serves as a guide for the community's physical, social, and economic development. Engaging the community in a conversation about the future of Dubuque was at the core of the Imagine Dubuque process. A year of community outreach produced over 12,500 ideas from more than 6,000 residents representing all sectors of Dubuque. This outreach took many forms, from casual conversations at pop-up events such as the Farmers' Market to focus groups, workshops, surveys, and on-line submissions. The plan's resulting Call to Action includes the following recommendations that support the FY 2022 REAP grant application. • Social + Cultural Vibrancy: Food -- Support food production spaces & establishment of Community Supported Agriculture; make City land available for food production. • Environmental Integrity: Healthy Neighborhoods -- Seek partnership opportunities to increase localized native plant, pollinator habitat, and edible landscaping in public spaces. • Environmental Integrity: Land Conservation -- Conserve areas near water trails and canoe launches, serene places to escape the city, and viewpoints to watch migratory birds. • Land Use: Park and Open Space -- Preserve key environmental features and provide recreational opportunities for all segments of the population through a variety of demanded active and passive options, and Link existing and future development with open space and trail corridors. The City's Parks and Recreation Commission reviewed the proposed project on August 10, 2021 at a public meeting. This provided another opportunity for community engagement. The Parks and Recreation Commission saw this land as a good addition to the park assets especially with the natural landscapes and the community gardens. They pointed to nearby neighborhoods that would benefit from having this type of resource so close to their neighborhood. They liked how the potential acquisition would meet so many of the City Council goals. They commented that the opportunity for a larger park that had so much connection to pollinators and wildlife would be of great benefit in our community and a great place for families to visit. REAP is a grant program for parks and open space administered by the Iowa Department of Natural Resources (IDNR). It provides up to $200,000 in grants to large cities. No local match is required. The City's REAP grant application must be reviewed and approved by the Dubuque County REAP Committee before it can be submitted to the IDNR. The grant application is due to the County by August 20, 2021. The grant application is due to the IDNR by August 30, 2021. On Yes, Council approved our request to apply for Expansion of Four Mounds Park: Acquisition of Four Mounds Farm. On 10/15/2021, Leisure Services was notified of the award. The details of the award are below. Awarded Amount: $200,000 Match Required: No Anticipated Receipt of money: 6/1/2022 Department Contact: Marie Ware Departments Involved: Leisure Services, Legal, Finance GRANT OBJECTIVE ECIA Grantwriter Laura Carstens worked with Four Mounds Foundation and city staff on the FY 2022 REAP grant application for Expansion of Four Mounds Park: Acquisition of Four Mounds Farm. Four Mounds Park is a City of Dubuque public park located at 4900 Peru Road. This Park is City Landmark Site, is listed on the National Register of Historic Places, and is a Silos and Smokestacks National Heritage Area Partner. Four Mounds Farm is located at 4392 Peru Road within a half -mile of Four Mounds Park. This 40.47- acre farm is privately owned by the Four Mounds Foundation. Four Mounds Farm is primarily a mix of grassland (reconstructed prairie), wooded draws, and gardens. It consists of two parcels. Parcel A is 8.18 acres; it includes community gardens and a residence with associated outbuildings. Parcel B is 32.29 acres of farmland under management for brush control and prairie reconstruction with the U.S Fish and Wildlife Service (USFWS). For over 20 years, the Four Mounds Foundation has utilized a small portion of the subject property near the residence for community gardens. The 14 garden plots support 28 users per year. These garden plots are part of the Dubuque Community Gardens initiative. The various outbuildings are used to store materials and equipment for programming by the Four Mounds Foundation. The REAP grant application is for Phase 1 of two-phase acquisition of Four Mounds Farm. The intent is to add to the inventory of the City of Dubuque's public park system. The prospective use and management goals are to increase public access by converting Four Mounds Farm from a privately -owned property to a public park while preserving the property's valuable open -space, natural, forested, and scenic characteristics. The existing partnership between the City of Dubuque and the Four Mounds Foundation will enable continuation of the community gardens and land management practices of brush control and prairie reconstruction as the phased land acquisition proceeds. Since 1998, the 40-acre Four Mounds Farm has been subject to the Bertsch Farm Conservation Easement, held by the Iowa Natural Heritage Foundation (INHF) for conservation values and public benefit. The INHF conservation easement is divided into two zones. Within Zone 1 are located the residence, associated outbuildings, and community gardens. Any new structures on the property are confined to Zone 1 and must be for a residential use, further protecting the open space qualities of the property. Zone 2 is designated for Agricultural uses, Garden practices, and Prairie restoration. In 2019, the Four Mounds Foundation entered into a Partners for Fish and Wildlife Program Landowner Agreement with the U.S Fish and Wildlife Service (USFWS) for "Brush Control and Prairie Reconstruction on the Bertsch Farm". This agreement applies to Zone 2 of the INHF conservation easement. COUNCIL GOAL(S) ADDRESSED Comprehensive Plan: Environmental Integrity Outcome(s) Promote a healthy urban forest and native plantings Value(s) Comprehensive Plan: Social and Cultural Vibrancy Outcome(s) Focus on expanding access to healthy local foods Value(s) ACTION STEP The purpose of this memorandum is to provide information on the award of Expansion of Four Mounds Park: Acquisition of Four Mounds Farm and request approval of the grant agreement. CC: Crenna Brumwell, City Attorney Jennifer Larson, Director of Budget and Finance Cassie Ross, Assistant Director of Finance ►VA kylyli an, q, IOWA DEPARTMENT OF NATURAL RESOURCES December 8, 2021 CITY OF DUBUQUE MARIE WARE 2200 BUNKER HILL ROAD DUBUQUE, IA 52001 Re: REAP Grant # 22-R4-JQ, FOUR MOUNDS FARM ACQUISITION Dear MARIE WARE: GOVERNOR Kim REYNOLDS LT. GOVERNOR ADAM GREGG DIRECTOR KAYLA LYON Congratulations! Attached please find your organizations Grant Agreement for your Resource Enhancement and Protection (REAP) grant awarded by the Department of Natural Resources (DNR). Please carefully review the grant agreement, print, sign, and return to my attention. A signed copy will be returned to you. If you have not already done so, please submit your appraisal(s), to my attention, for review and approval. State Appraisal Guidelines are available on the DNR's internet site on the following page: http://www.iowadnr.gov/lnsideDNR/AboutDNR/RealtyServices.aspx. Please start a folder to place all grant and expense documention in. State rules and regulations included with the application and pertaining to the REAP program effectively become part of the grant agreement. If you have any questions, please contact me at 515-725-8213. Sincerely, Kathleen Moench Budget and Finance Bureau Enclosures WALLACE BUILDING, 502 E 9T" ST, DES MOINES IA 50319 Phone: 515-725-8200 www.lowaDNR.gov Fax: 515-725-8201 REAP Grant #: 22-R4-JQ IOWA DEPARTMENT OF NATURAL RESOURCES 502 E. 9T" STREET DES MOINES, IA 50319 RESOURCE ENHANCEMENT AND PROTECTION FUND GRANT AGREEMENT -ACQUISITION GRANTEE: CITY OF DUBUQUE PROJECT TITLE: FOUR MOUNDS FARM ACQUISITION CONTACT PERSON: MARIE WARE 563-589-4264 GRANT AWARD: $200000.00 DNR CONTACT/PHONE #: Kathleen Moench 515-725-8213 1. PURPOSE. The purpose of this REAP Acquisition Grant Agreement is to enable the Iowa Department of Natural Resources (DNR), acting for the State of Iowa, to assist the CITY OF DUBUQUE (Grantee) in the acquisition of land for the enhancement and protection of open space areas. 2. PARTIES/AUTHORITY. The parties to this Grant Agreement are the DNR, an agency of the State of Iowa, and the CITY OF DUBUQUE. The parties make this Grant Agreement pursuant to 1989 Iowa Code Supplement Section 455A.19(1)(a), which authorizes the Natural Resource Commission to spend certain state funds appropriated for projects to enhance and protect open spaces. 3. GENERAL DESCRIPTION OF PROJECT LANDS. THIS GRANT AGREEMENT IS FOR YOUR PROJECT described as: ACQUISITION OF 2 PARCELS, 40 ACRES TOTAL, TO ENHANCE OUTDOOR RECREATION THROUGH COMMUNITY GARDINS AND LAND MANAGEMENT PRACTICES, LOCATED ON PERU ROAD, HALF MILE SOUTH OF FOUR MOUNDS PARK, DUBQUE, DUBUQUE COUNTY, IOWA. 4. GRANT AWARD AND REIMBURSEMENTS. The DNR will provide 100 percent of the acquisition costs up to a maximum amount of $200000.00. A. Appraisals must be sent to the Department for review and approval, follow the DNR appraisal guidelines, which can be found at; http://www.iowadnr.gov/lnsideDNR/AboutDNR/RealtVServices.aspx, and include a groundwater hazard statement. Submit the appraisal(s) and groundwater hazard statement(s) as soon as possible to: REAP Grants Manager, Budget & Finance Bureau Iowa Department of Natural Resources 502 East 9th Street Des Moines, Iowa 50319 B. Upon receiving written approval of the appraisal(s), 100 percent advance reimbursement of the grant award may be requested by submitting a letter of request and the following documents: title opinion showing title is clear and marketable; signed offer to buy or signed purchase agreement. REAP Grant #: 22-R4-JQ C. The following documents are required upon completion of the grant: a legal description of the property for the Notice of Use Restriction document; copy of the recorded deed naming the grantee as owner; copy of the recorded groundwater hazard statement(s); copies of billings and canceled checks for the acquisition; final report, to include a description and pictures of the completed project. S. ACQUISITION COSTS EXPLAINED. Acquisition costs include the lesser of the cost or value of the project lands and the lesser of the cost or value of acquisition services as follows: A. Cost/Value of Project Lands. Acquisition costs include the lesser of the purchase price paid for the project lands by the grantee, or their fair market value established by an appraisal approved by the DNR. B. Cost/Value of Acquisition Services. Acquisition costs also include the lesser of the price paid by the grantee for acquisition services, or the fair market value of such services based on a written valuation approved by the DNR. Acquisition services include appraisals, surveys, abstracting, and other miscellaneous services reasonably required for acquisition of the project lands. C. Notwithstanding subparagraphs 5a and 5b, the DNR will not cost -share more than the appraised fair market value of any part of the project lands, and will not cost -share more than the substantiated fair market value of any acquisition services. 6. RESPONSIBILITIES. The grantee is solely responsible for closing the acquisition transaction, recording the transaction and Notice of Use Restriction with the appropriate county recorder. The grantee will make a concerted effort to procure goods and services from Targeted Small Businesses (TSBs) during the performance of this Grant Agreement. The DNR may provide assistance at the request of the grantee, or at the Director's recommendation. 7. WRITTEN WAIVERS. The grantee may choose at its own risk to acquire title to portions of the project lands if necessary to avoid expiration of an offer to sell or to facilitate fund raising, after obtaining a written waiver of retroactivity from the department. 8. AMENDMENTS. This Grant Agreement may be amended only by written ADDENDA signed and dated by the DNR Director or DNR REAP coordinator. Requests for amendments shall be directed to the DNR REAP coordinator. 9. EFFECTIVE DATE/TERMINATION. This Grant Agreement shall become effective when it has been signed and dated by the DNR Director and the grantee. All work specified in the project proposal will be completed by DECEMBER 31, 2023. 10. AVAILABILITY OF FUNDS. If funds anticipated for the continued fulfillment of this agreement are at any time not forthcoming or insufficient, either through the failure of the State of Iowa to appropriate funds, or discontinuance or material alteration of the program under which funds were provided, then the Department shall have the right to terminate the agreement without penalty. REAP Grant #: 22-R4-JQ 11. By signing this Grant Agreement, the grantee agrees to the terms and conditions set forth in this agreement and all documents listed below: the REAP "General Provisions" (State rules included with application form); the appraisal guidelines: http://www.iowadnr.gov/lnsideDNR/AboutDNR/RealtVServices.aspx Date Alex Moon, Deputy Director Iowa Department of Natural Resources MWARE@CITYOFDUBUQUE.ORG Email Address Grantee Signature; Mayor or County Board Director Print Name; Mayor or County Board Director Michael C. Van Milligen REAP Grant #: 22-R4-JQ Shaded area for DNR use only Accounting Department Return Copy to: Kathleen Moench Doc #: CITY OF DUBUQUE 2200 BUNKER HILL ROAD DUBUQUE, IA 52001 State ID #: Fund/Ag/O rg/S u b O rg/$ : Cv: DEPARTMENT OF NATURAL RESOURCES REAP PROJECT BILLING — ACQUISITION GRANT Date: Project billings must be accompanied by all required documentation (invoices, canceled checks, deeds, etc.) covering expenditures included in the billing. If you have questions, please contact the Budget & Grants Bureau at 515-725-8213. Make additional copies as needed. Grant Recipient: CITY OF DUBUQUE Project Title: FOUR MOUNDS FARM ACQUISITION Final Billing: Y or N Use the table below to list your budget items and the expenditures for each item. You should follow the budget items provided with your grant proposal as clos ely as possible Budget Item Budget Expenditures "To Date" Item Amount This Billing Expenditures Totals Less Expenditures In Excess of Total Authorized Project Budget: Total "To Date" Expenditures: CLAIM REQUEST (_% OF "TO DATE" EXPENDITURES): LESS PREVIOUS PAYMENTS OF: TOTAL CLAIM TO BE PAID: Land Acquisition - List each parcel separately by parcel #. Use purchase price or appraised value, whichever is the lesser. I certify that this billing is correct and just based upon actual payment(s) of record by the grant recipient, and that the work and services are in accord with the approved grant. Signature: Print Name: Title: Date: Phone: Mail original Billing Form to DNR Budget & Finance Bureau, backup documentation may be emailed.