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Sale of City-owned Property at 1450 Iowa Street_HearingCopyrighted January 18, 2022 City of Dubuque Public Hearings # 4. City Council Meeting ITEM TITLE: Sale of City -owned Property at 1450 Iowa Street SUMMARY: Proof of publication on notice of public hearing to consider City Council approval of the sale of City -owned real property located at 1450 Iowa Street to GT Development LLC for a purchase price of $1,000, and City Manager recommending approval. SUGGESTED DISPOSITION: ATTACHMENTS: Description RESOLUTION Disposing of city interest in real property located at 1450 Iowa Street, in the City of Dubuque, Iowa Suggested Disposition: Receive and File; Adopt Resolution(s) 1450 Iowa Street Sale-MVM Memo Staff Memo Resolution Offer to Purchase 1450 Iowa St. Special Warranty Deed Type City Manager Memo Staff Memo Resolutions Supporting Documentation Supporting Documentation THE C DUjIBQTE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Sale of City -owned Property at 1450 Iowa Street DATE: January 12, 2022 Dubuque WAWca 914 ii 2007-2012.2013 2017*2019 Housing and Community Development Director Alexis Steger requests the City Council approve the sale of City -owned real property located at 1450 Iowa Street to GT Development LLC for the purchase price of $1,000. 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 M. Steger, Housing and Community Development Director THE C Dubuque DUUB_-'*_TE.E AII•Ameriea C ft w:. Masterpiece on the Mississippi � pp 13 z°°'"° zoi7*20*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Sale of City -owned Property at 1450 Iowa Street DATE: January 12, 2022 Introduction The purpose of this memorandum is to request the City Council to hold a Public Hearing for the purpose of disposing of City -owned real property located at 1450 Iowa Street. Background The property at 1450 Iowa Street was acquired by the City using the petition for title process as outlined by state code section 657A.1OB. The property is in the Jackson Park Historic District and has significant historic integrity and appeal. Housing staff evaluated the building for rehabilitation and determined that the sale and private rehabilitation would result in the most efficient restoration of the property. Discussion A request for proposal was published on November 3, 2021, which resulted in two proposals being submitted. The proposals were scored based on criteria established by staff with a focus on supporting the City Council's established goals and priorities. GT Development's proposal with a purchase price of $1,000, and outlines the restoration of the historic property, was selected as the preferred proposal. They intend to commence work as soon as they receive title to the property, and they anticipate completion in approximately 6 months. Recommendation I respectfully request the City Council hold a public hearing and approve the attached resolution approving the disposal of 1450 Iowa Street to GT Development. Prepared by: Ben Pothoff, Deputy Code Official Prepared by: Ben Pothoff, 350 W. 01 Street, Dubuque IA 52001 563 690-6075 Return to: Ben Pothoff, 350 W. 6' Street, Dubuque IA 52001 563 690-6075 RESOLUTION NO. 31-22 DISPOSING OF CITY INTEREST IN REAL PROPERTY LOCATED AT 1450 IOWA STREET, IN THE CITY OF DUBUQUE, IOWA Whereas, the City Council, by Resolution No. 10-22, dated January 3, 2022, declared its intent to dispose of City interest in real property located at 1450 Iowa Street, legally described as: Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners' Plat thereof. (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on January 18, 2022 at 6:30 p.m. in the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa; and Whereas, it is the determination of the City Council that approval of the purchase agreement for the sale to GT Development LLC. according to the terms and conditions set out in the purchase agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. The purchase agreement by and between the City of Dubuque and GT Development LLC. for the sale of the Property, a copy attached hereto, is hereby approved. Section 2. The Mayor and City Clerk are hereby authorized and directed to execute a Special Warranty Deed, conveying the City's interest in the Property to GT Development LLC. Section 3. That the City Clerk is hereby authorized and directed to cause said Special Warranty Deed to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Passed, approved, and adopted this 18th day of January 2022. ra M. C4Knagh, Mayor Attest: p� f,� v2 P. �t444-L Adrienne N. Breitfelder, City Clerk OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: City of Dubuque, Iowa, a municipal corporation (Seller) SECTION 1. REAL ESTATE DESCRIPTION. The undersigned BUYER hereby offers to buy and the undersigned SELLER by its acceptance agrees to sell the real estate (Real Estate) situated in Dubuque, Iowa, locally known as 1450 Iowa Street, Dubuque, IA 52001 and legally described as: Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners' Plat thereof. legal description to be confirmed per continued abstract per Section 10, together with any easements and appurtenant servient estates, but subject to the following: a. any easements of record for public utilities or roads, b. any zoning restrictions and other ordinances, and c. any covenants of record. SECTION 2. PURCHASE PRICE. The purchase price shall be one thousand dollars ($1,000.00). SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable for fiscal year 2021 and prior years. Seller shall also pay real estate taxes for fiscal year 2022 prorated through the date of closing. Buyer shall pay all subsequent real estate taxes due and payable after the date of closing. SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments which are a lien on the Real Estate as of the date of acceptance of this Offer. All other special assessments shall be paid by Buyer. SECTION 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or damage to the Real Estate prior to closing or possession, whichever first occurs. Seller agrees to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The property shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time of possession is delivered to Buyer, provided, however, if there is loss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Seller, Buyer agrees to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Seller shall not be required to repair or replace same. SECTION 7. POSSESSION AND CLOSING. 7.1 If Buyer timely performs all obligations, possession of the Real Estate shall be delivered to Buyer on or before February 15, 2022, or such earlier date as the parties may agree in writing, with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. 7.2 Closing shall occur after the approval of title by Buyer and vacation of the Real Estate by Seller, but prior to possession by Buyer. Seller agrees to permit Buyer to inspect the Real Estate within seventy two (72) hours prior to closing to assure that the premises are in the condition required by this agreement. If possession is given on a day other than closing, the parties shall make a separate agreement with adjustments as of the date of possession. 7.3 This transaction shall be considered closed upon the delivery of the title transfer documents to Buyer and receipt of all funds then due at closing from Buyer under the Agreement. SECTION 8. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. SECTION 9. FIXTURES. Included with the Real Estate shall be all fixtures that integrally belong to, are specifically adapted to or are a part of the real estate, whether attached or detached. Also included shall be the following: N/A. The following items shall not be included: N/A. SECTION 10. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an abstract of title to the Real Estate and deliver it to Buyer's attorney for examination. It shall show marketable title in Seller in conformity with this Agreement, Iowa law, and title standards of the Iowa State Bar Association. Seller shall make every reasonable effort to promptly perfect title. If closing is delayed due to Seller's inability to provide marketable title, this agreement shall continue in force and effect until either party rescinds the Agreement after giving ten (10) days written notice to the other party. The abstract shall become the property of Buyer when the Purchase Price is paid in full. Seller shall pay the costs of any additional abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or Seller's assignees. Unless stricken, the abstract shall be obtained from an abstracter qualified by the Guaranty Division of the Iowa Housing Finance Authority. SECTION 11. DEED. Upon payment of the Purchase Price, Seller shall convey the Real Estate to Buyer by Special Warranty Deed, free and clear of all liens, restrictions, and encumbrances, except as provided in this agreement. General warranties of the title shall extend to the time of delivery of the deed excepting liens and encumbrances suffered or 2 permitted by Buyer. SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. This agreement shall survive the closing. SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND REVIEW. Real Estate deeded herein is taken in "as is" condition with no guarantees or warranties express or implied. SECTION 14. ENCUMBRANCES. Seller warrants that the Real Estate will as of the date of closing be free and clear of all liens, security interests, and encumbrances. SECTION 15. TENANTS. The Real Estate is free and clear of any occupants, and no party has a lease to or other occupancy or contract right in the Real Estate which shall in anyway be binding upon the Real Estate. Seller shall hold harmless and indemnify the Buyer for and against any claims, which may arise or be based upon any alleged leasehold interest, tenancy, or other right of occupancy or use for any portion for the Real Estate. This covenant shall survive the closing. SECTION 16. NO REAL ESTATE AGENT OR BROKER. Neither party has used the service of a real estate agent or broker in connection with this transaction. SECTION 17. CERTIFICATION. Buyer and Seller each certify that they are not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and are not engaged in this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Each party hereby agrees to defend, indemnify and hold harmless the other party from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees and costs) arising from or related to breach of the foregoing certification. SECTION 18. REMEDIES OF THE PARTIES. 18.1 If Buyer fails to timely perform this contract, Seller may forfeit it as provided in the Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty (30) days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty (30) days such failure is not corrected) Seller may declare the entire balance immediately due and payable. Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver. 18.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to it. 3 18.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at law or in equity available to them and shall be entitled to obtain judgment for costs and attorney fees as permitted by law. SECTION 19. WAIVER. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. SECTION 20. NOTICE. Any notice under this agreement shall be in writing and be deemed served when it is delivered by personal delivery or mailed by certified mail, addressed to the parties at the addresses given below. GT Development, LLC 4617 Camelot Drive Dubuque, IA 52001 City of Dubuque Attn: Alexis Steger 50 W. 13t" Street Dubuque, IA 52001 SECTION 21. TIME IS OF THE ESSENCE. In the performance of each part of this agreement, time shall be of the essence. SECTION 22. TIME FOR ACCEPTANCE. When accepted, this agreement shall become a binding contract. If this Offer is not accepted and delivered to Buyer on or before 5:00 p.m. on January 18, 2022, this agreement shall be null and void and all payments shall be returned immediately to the Buyer. SECTION 23. ENTIRE AGREEMENT. This agreement contains the entire agreement of the parties and shall not be amended except by a written instrument duly signed by Seller and Buyer. SECTION 24. PARAGRAPH HEADINGS AND CONSTRUCTION. Paragraph headings are for convenience of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender according to the context. SECTION 25. OTHER PROVISIONS. 25.1 This agreement is subject to the final approval of the City Council of the City of Dubuque, Iowa in its sole discretion. If the City Council of the City of Dubuque, Iowa does not approve this Offer, it shall become automatically void and neither party shall be bound by the terms and conditions set forth herein. 25.2 The terms of the Contract Agreement attached to this Offer to Buy are hereby incorporated. Cd 25.3 The terms of Section 25 shall in all respects survive the closing. SELLER CITY OF DUBUQUE, IOWA By: Brad M. Cavanagh'-rvtayor BUYER GT DEVELOPMENT LLC By: Tom Kelzer Dated: I / f 9 / ^ c� Dated: Doc ID: 010984770004 Type: GEN Kind: DEED WITH RESOLUTION Recorded: 07/06/2022 at 03:16:24 PM Fee Amt: $27.00 Page 1 of 4 Revenue Tax: $0.00 Dubuque County Iowa John Murphy Recorder File2022-00008516 Prepared by: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Return to: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Tax Statement to: GT Development, LLC 4617 Camelot Drive Dubuque, IA 52001 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL, AND CONVEY unto GT Development, LLC, an Iowa limited liability company, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners' Plat thereof. (1450 Iowa Street) This Deed is exempt from transfer tax pursuant to Iowa Code Section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 31-aa of the City Council of the City of Dubuque adopted the 18th day of January, 2022, the terms and conditions thereof, if any, having been fulfilled. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated this day of , 2022 at Dubuque, Iowa. CITY OF DUBUQUE IOWA Oo (50 Wj�i /n�n- Attest: By: ��� i-llt- e. Adrienne Breitfelder, City Clerk STATE OF IOWA ) SS COUNTY OF DUBUQUE ) On this 'd day of , 2022, before me a Notary Public in and for said County, personall peared Br M. Cavanagh and Adrienne Breitfelder to me personally known, who ng duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public in/ar)d for Dubuque County, Iowa ;s PAMELA J. MCCARRCN Commission Nu - ' her l724 19 My Cnmm. EXP. �-� mow.- goad Prepared by: Ben Pothoff, 350 W. 611' Street, Dubuque IA 52001 563 690-6075 Return to: Ben Pothoff, 350 W. 6'h Street, Dubuque IA 52001 563 690-6075 RESOLUTION NO. 31-22 DISPOSING OF CITY INTEREST IN REAL PROPERTY LOCATED AT 1450 IOWA STREET, IN THE CITY OF DUBUQUE, IOWA Whereas, the City Council, by Resolution No. 10-22, dated January 3, 2022, declared its intent to dispose of City interest in real property located at 1450 Iowa Street, legally described as: Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners' Plat thereof. (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on January 18, 2022 at 6:30 p.m. in the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa; and Whereas, it is the determination of the City Council that approval of the purchase agreement for the sale to GT Development LLC. according to the terms and conditions set out in the purchase agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. The purchase agreement by and between the City of Dubuque and GT Development LLC. for the sale of the Property, a copy attached hereto, is hereby approved. Section 2. The Mayor and City Clerk are hereby authorized and directed to execute a Special Warranty Deed, conveying the City's interest in the Property to GT Development LLC. Section 3. That the City Clerk is hereby authorized and directed to cause said Special Warranty Deed to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Passed, approved, and adopted this 18th day of January 2022. ra M. nagh, Mayor Attest: 0�� //I- A*Rk-t 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. 31-22 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 14t' day of February, 2022. , Adrienne N. Breitfelder, City Clerk STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 01/07/2022 and for which the charge is 63.80 Subscribed to befo me, a Notary Publi in and for Dubuque County, Iowa, this 7th day of January, 2022 041n-'�t -�� zerl� Notary P b is in and for Dubuq e County, Iowa. REME] 59022 Ad text : CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 18th day of January 2022, at 6:30 p.m. in the Historic Federal Building, 350 West Sixth Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to dispose of an interest in the following described real property by sale to GT Development LLC: Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners' Plat thereof. locally known as 1450 Iowa Street. At the meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. The official agenda will be posted the Friday before the meeting and will contain public input options. The City Council agenda can be accessed at https://cityofdubuque.novusagenda.com/AgendaPublic/ or by contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org. Written comments regarding the above public hearings may be submitted to the City Clerk's Office via email at ctyclerk@cityofdubuque.org or by mail to City Clerk's Office, City Hall, 50 W. 13th St., Dubuque, IA 52001, before said time of public hearing. At said time and place of public hearings the City Council will receive any written comments. Copies of supporting documents for the public hearings are on file in the City Clerk's Office and may be viewed Monday through Friday between 8:00 a.m. and 5:00 p.m. Individuals with limited English proficiency, vision, hearing, or speech impairments requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD (563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing individuals can use Relay Iowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the 3rd day of January 2022. Adrienne N. Breitfelder, City Clerk RESOLUTION NO. 10-22 INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO GT DEVELOPMENT LLC., SETTING A TIME AND PLACE FOR HEARING, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Dubuque, Iowa (City) owns 1450 Iowa Street (the Property) legally described as: Middle 1/5 of Out Lot 455 and the North 23 inches of the South Middle 1/5 of Out Lot 455, in the City of Dubuque, Iowa, according to the United States Commissioners Plat thereof. and WHEREAS, City acquired the Property through the Court by petitioning for title in accordance with Iowa Code 567A.10B for the purpose of its restoration of the abandoned property; and WHEREAS, GT Development LLC., will rehabilitate the property and sell the property; and WHEREAS, by accepting the selected offer the Citys objectives of Historic Building Rehabilitation/preservation and Livable Neighborhoods and Housing can he realized and is consistent with the City goal of creating opportunities for affordable housing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa, proposes to dispose of its interest in the above described real estate to GT Development LLC. Section 2. That the City Council shall conduct a public hearing on the proposed disposition of real estate in the City Council Chambers at the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa on the 18th day of January, 2022 beginning at 6:30 p.m. Section 3. That the City Clerk be and is hereby authorized and directed to publish notice of the public hearing in the form attached hereto, according to law. Passed, approved and adopted this 3rd day of January, 2022. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk It 1/7