Sale of City-owned property at 1559 Washington Street_InitiateCity of Dubuque
City Council Meeting
Copyrighted
May 15, 2023
Items to be set for Public Hearing #
01.
ITEM TITLE: Sale of City -owned property at 1559 Washington Street
SUMMARY: City Manager recommending City Council hold a public hearing on June
5, 2023, for the purpose of disposing of City -owned real property located
at 1559 Washington Street.
RESOLUTION Intent to dispose of an interest in City of Dubuque real
estate to RC Restoration LLC, setting a time and place for hearing, and
providing for the publication of notice thereof
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for June 5,
DISPOSITION: 2023Suggested Disposition:
ATTACHMENTS:
Description
MVM Memo
Set Public Hearing 1559 Washington - Staff Memo
Set Public Hearing 1559 Washington - Resolution
1559 Washington Purchase Agreement
Notice of Public Hearing
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
Supporting Documentation
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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 1559 Washington Street
DATE: May 9, 2023
Dubuque
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Housing & Community Development Director Alexis Steger is recommending City
Council hold a public hearing on June 5, 2023, for the purpose of disposing of City -
owned real property located at 1559 Washington Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing & Community Development Director
Ben Pothoff, Deputy Code Official
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Sale of City -owned property at 1559 Washington Street
DATE: May 4, 2023
Introduction
The purpose of this memorandum is to request that City Council to hold a Public Hearing
on June 5, 2023, for the purpose of disposing of City -owned real property located at 1559
Washington Street.
Background
The property at 1559 Washington Street was acquired by the City using the petition for
title. Housing staff evaluated the building and determined that the cost for the City's
Housing Rehabilitation program to renovate the property and sell it for owner occupancy
exceeded the program capacity. Upon further review, staff determined that sale and
private rehabilitation would result in the most efficient restoration of the property.
Discussion
A request for proposal was published on April 7, 2023, which resulted in one proposal
being submitted. The proposal was scored based on criteria established by staff with a
focus on supporting the City Council's established goals and priorities. The lone
proposal outlined a complete renovation of the property. Upon completion, the property
will be sold as a single-family dwelling.
Staff supports proceeding with the proposal submitted by RC Restorations LLC which
outlines a complete renovation of the property. RC Restorations LLC will commence
work as soon as they receive title to the property and anticipates completion in 3-5
months.
Recommendation
I respectfully request the City Council schedule a public hearing for June 5, 2023,
approving the purchase agreement of 1559 Washington as presented.
Prepared by: Ben Pothoff, Deputy Code Official
Prepared by Maddv Haverland, Housing & Community Devel., 350 W. 61h St., Suite 312, Telephone: (563) 690-6072
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, 1A 52001, (563) 589-4100
RESOLUTION NO. 154-23
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO
RC RESTORATION LLC, SETTING A TIME AND PLACE FOR HEARING,
AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF
Whereas, the City of Dubuque, Iowa (City) owns 1559 Washington Street (the
Property) legally described as:
North'/2 of Lot 79 in East Dubuque Addition in the City of Dubuque, Iowa,
according to the recorded plot thereof; and
Whereas, the City acquired the property by petition for title to abandoned
property; and
Whereas, it is the recommendation of the Housing and Community Development
Department to approve the purchase agreement for the sale to RC Restoration LLC
according to the terms and conditions set out in the purchase agreement 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. That the City of Dubuque, Iowa, proposes to approve the purchase
agreement of the above -described real estate to RC Restoration LLC.
Section 2. That the City Council shall conduct a public hearing on the proposed
purchase agreement in the City Council Chambers at the Historic Federal Building, 350
W. 6th Street, Dubuque, Iowa on the 5th day of June 2023, beginning at 6:30 PM.
Section 2. That the City Cleric 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 15th day of May 2023.
Attest
Adrienne N. Breitfelder, City Clerk
rad M. gh, Mayor
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DocuSign Envelope ID: 0893FE9F-3FD6-4323-9768-67CCAC92B5D3
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 1559 Washington Street, Dubuque,
IA 52001 and legally described as:
North'/2 of Lot 79 in East Dubuque Addition in the City of Dubuque, Iowa, according
to the recorded plot 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 four thousand, two
hundred dollars ($4,200.00).
SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes
payable for fiscal year 2022 and prior years. Seller shall also pay real estate taxes for
fiscal year 2023 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.
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DocuSign Envelope ID: 0893FE9F-3FD6-4323-9768-67CCAC92B5D3
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 July 1, 2023, 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
permitted by Buyer.
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DocuSign Envelope ID: 0893FE9F-3FD6-4323-9768-67CCAC92B5D3
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.
18.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at
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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.
RC Restoration LLC
Attn: Luke Hoffman
500 Westover Drive #34567
Sanford, NC 27330
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 May 8, 2023, 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.
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25.3 The terms of Section 25 shall in all respects survive the closing.
SELLER
CITY OF DUBUQUE, IOWA
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By:
Alexis M. Steger, Housing Director
BUYER
RC Restoration LLC
Dll"Siged by:
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Luke Hoffman
5/6/2023
Dated: Dated:
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 5th day of June 2023, at 6:30 p.m. in the Historic
Federal Building, 350 West 6t" 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 RC Restoration LLC:
North '/2 of Lot 79 in East Dubuque Addition in the City of Dubuque, Iowa,
according to the recorded plot thereof, locally known as 1559 Washington
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. 13t" 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,
ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing individuals can
use Relay Iowa by dialing 711 or (800) 735-2942.
Dated this XX day of XXXX 2023.
Adrienne Breitfelder, City Clerk