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Resolution Approving the Acquisition of Real Estate Owned by Ace Construction-Dubuque, L.L.C. by Eminent Domain and Establishing the Fair Market Value of Real EstateCity of Dubuque City Council Meeting Consent Items # 06. Copyrighted April 1, 2024 ITEM TITLE: Resolution Approving the Acquisition of Real Estate Owned by Ace Construction -Dubuque, L.L.C. by Eminent Domain and Establishing the Fair Market Value of the Real Estate SUMMARY: City Manager recommending City Council adopt the attached resolution authorizing acquisition of the property owned by Ace Construction - Dubuque, L.L.C. by eminent domain if necessary and establishing the fair market value of the property. RESOLUTION Approving the acquisition of real estate owned by Ace Construction -Dubuque, L.L.C. by eminent domain and establishing the fair market value of the real estate SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Notice of Intent Supporting Documentation Letter to Mihalakis Supporting Documentation THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Approving the Acquisition of Real Estate Owned by Ace Construction -Dubuque, L.L.C. by Eminent Domain and Establishing the Fair Market Value of the Real Estate DATE: March 11, 2024 Ace Construction -Dubuque, L.L.C. (Ace) owns a small parcel of property off of Hawthorne Street which is adjacent to property on which is located Well No. 5, one of the City's nine water wells. The wells supply all of the potable water to the City of Dubuque. The use of the property as a construction storage site makes access to Well No. 5 for testing and repairs very inconvenient, and in the event of the need to replace the well, virtually impossible. The well is routinely tested and to date no issues have been discovered but there is concern that without control of the site, the risk of contamination does exist. Water Department Director Christopher Lester believes it is critical that the City acquire the property. The property has been appraised at Nineteen Thousand ($19,000), please see Attachment 7. An offer to purchase the property for the appraised value has not been accepted by the property owner. City Attorney Crenna Brumwell is recommending that the City Council adopt the attached resolution authorizing acquisition of the property by eminent domain if necessary and establishing the fair market value of the property. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Christopher Lester, Water Department Director THE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi CRENNA M. BRUMWELL, EsQ. CITY ATTORNEY To: Michael C. Van Milligen City Manager DATE: March 6, 2024 RE: Resolution Approving the Acquisition of Real Estate Owned by Ace Construction -Dubuque, L.L.C. by Eminent Domain and Establishing the Fair Market Value of the Real Estate Ace Construction -Dubuque, L.L.C. (Ace) owns a small parcel of property off of Hawthorne Street which is adjacent to property on which is located Well No. 5, one of the City's nine water wells. Please see Attachments 1-4. The wells supply all of the potable water to the City of Dubuque. The use of the property as a construction storage site makes access to Well No. 5 for testing and repairs very inconvenient, and in the event of the need to replace the well, virtually impossible. The well is routinely tested and to date no issues have been discovered but there is concern that without control of the site, the risk of contamination does exist. Water Department Manager Christopher Lester believes it is critical that the City acquire the property. As a result, it is essential for the City to have full access to the well for maintenance and/or replacement and to protect the well from potential contamination. Attachments 5-6 show why the entire parcel is necessary for maintenance and/or replacement of the well. In 2022, Ace agreed to grant an easement to the City for access to the well. However, Ace owner, Mr. Mihalakis has not cooperated with the City in allowing access pursuant to the easement. It is necessary for the City to acquire title to the property. The Iowa Code requires the City Council to establish the fair market value of the property and the City may not offer less than the fair market value to purchase the property. The property has been appraised at Nineteen Thousand ($19,000), please see Attachment 7. An offer to purchase the property for the appraised value has not been accepted by the property owner. It is recommended that the City Council adopt the attached resolution authorizing acquisition of the property by eminent domain if necessary and establishing the fair market value of the property. Attachments cc: Christopher Lester, Water Department Manager ATTACHMENT 1 ATTACHMENT 2 . �C- �G. - Y -}`. h.1i�_�" :ICI � j� rt� '-�•� --may ALI dpl —10 ATTACHMENT 3 4ti+-�� �••�j i_ rLj 4 it+ 4 r� ATTACHMENT 4 F ATTACHMENT 5 k- ATTACHMENT 6 I Y ATTACHMENT 7 2023160 A DETAILED NARRATIVE APPRAISAL REPORT FOR TOTAL ACQ_UIS.ftib-N OF THE n:t Ace Cuustruction • Dubuque, LLC Property 2325 Garfield Ave Dubuque, IA ,. r .� ... As Of f - ,fanuary 25, 2024 Pfepamd fof Mr. Barry Undahl, Scuior Counsel City of Dubuque 300 Main Street Dubuque, I.A S2001 l Prctrnarcd fly llennis G. crook, 41AF.,Al-i-RS' 4 ` i.;I1GD1+ii tr�c 1`tiL"tit L.UAT-10 N' SEARCH GROUP 15$0DIaltDrive Iowa City, Iowa 52240 PoswUATION DENN19 G. CROriK, MAI RESEARCH GROUP APPRAISERS ApKo CON2WL7d1NTS of REaAL ESTATE Februss y 2, 2024 Mr. Barry Lindnitl Senior Caunsef city of Dubugltg 300 Main Stt=l Ujibuqucl . to 52t101 Subjecl; A i7et6ited Karratiye Appraisal Report mi ilie Ace Consh ictioti - Utlbuque, LLC property [mated al 2325 Garfleld Ave, Dubuque. taws. peer Mr. 1.iikdo W' Az your request. we have compluted wl appraisal FW0ft cut the abayc referetleod properly, The pulpose of dia Inspoom and lit is ❑etahvi Nam9live appraisal iS to estinlatu lire jnst c-ong3,msation For rotnl auquiSitiou of tho subject property as of Jnituary 25, 20A tho date of the property iuspwdan. Tlta imeudad use of#ltis "'aiw is to nssrkt in ncaotintioaa cpncctnine tho itrst zompms6on to the property 4m-ACr tiva Its the irnrstcts ott the quhjact property. in rfris case, the property 1s proposed far a toled acquisition. Prupeety i3muiption: 11e subject ptaparty is n vacant ioi totaling 5,021 square feel. It is lucated adjau mt to the mtiimad, southwest Qfliawtharne Snmct and clang the sorlthemg side of the CrarficJd Avemta aghl of way_ Nrfeld Averme Is an an IEnprOvod alley along the subject's frontage with a 20' wid0i. ihts tepbrt was ryrepa4W !or Und nrtr protesslauat fee biro- i W the uty 01 Duhugne. It should nol be dmInuuleal Ia or relied upon by other Pe-0119 as` entities without out written permission. Wo underdwid the report will be shared wit$ dze property awuar and maybe be offered as an e, t fbit in r}rcndezru%601t Ocmlings. rhis furies. along wills related exhibits and rtdtlenda, must rrrnain attached to the report is unite for the value apiniaa 9ct firth to be considered valid. Based upon the analysis waUuned in this report, the mtiandlti t iLW compensufian is: $191000 Ninamn Thousand Dollars This appraisal is prepared in accordance with die Appraisal OperatiMal Manual of the Irma fleparlivetrr 4 Twfivurlatiun, Ull;'i" of Right -of Way, and stated Aovonher 2019. The nppraisal is s01e4y tar the City of Dabugtm: os such govemmuniAl b(xiy aS then dcsiplms, and is ptcpa uxl under tltc Jurisdictional Emma) iou W the Uniform Stnudards of Pmfusmnal Apprnisal Pm4ice (USPAP)_ This appraisal dour conform With all parts of US PAP axacpt Those 111M ace ctmtrsry to Siam and Federal requirelnents.'rhe value opiniqu repotted is quatificd by certain doliiniticros. liin ting ronditioAss acid ccrtilicatiosls that arc sct forth is the body of this report. 11 is our understanding that a copy of this repaid will be shamd wisb tits property mum 1580 MALL DRIVE • 1QWA CITY, IdwA 52240 3t91351-2044 0l=Ax 351-Ps63 • 1=�MAIL COOKA P P R(gGOOK-A PFR Al 9AI-X0 M February 2. 2024 Mr. Lindahl 113402 5iticerely, Cask Aplrlgitial, LLC Dennis G. Crank, MA I, AI•GR5 Stair, of Iowa C onificarinn 9CO023 I 1 rtf-P nL1, 7n-01 Ail Qioo p-aisal 1=5 R HMSROUP VALUATION Prepared by Crenna Brumwell. Esq., 300 Main St., Ste. 330, Dubuque IA 52001-6944, (563) 583-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 68-24 APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY ACE CONSTRUCTION-DUBUQUE, L.L.C. BY EMINENT DOMAIN AND ESTABLISHING THE FAIR MARKET VALUE OF THE REAL ESTATE WHEREAS, Ace Construction -Dubuque, L.L.C. (Ace), is the owner of the real estate legally described as follows; All that part of Lots 193, 194, 195 and 196 lying North and West of Railroad, subject to Railroad Right of Way, and all in "Map of Eagle Point or Ham's Addition to the City of Dubuque 1854" (commonly known as Ham's Addition) in the City of Dubuque, Iowa, according to the recorded plat thereof (the Property). and; WHEREAS, the Property is adjacent to property on which is located one of the City's five water wells which supply potable water to the entire City of Dubuque; and WHEREAS, the City must use the property to access the City's sanitary sewer system for maintenance to prevent sanitary sewer backups; and WHEREAS, the use of the Property as a construction storage site makes access to the well for testing and repairs very inconvenient, and in the event of the need to replace the well, virtually impossible; and WHEREAS, the use of the Property as a construction storage site makes access to the City's sanitary sewer system for maintenance and prevention work very inconvenient; and WHEREAS, it is essential for the City to have full access to the well for maintenance and/or replacement; and WHEREAS, it is essential for the City to have full access to the sanitary sewer for maintenance; and WHEREAS, the City Council finds that it is critical for the City to acquire the Property for such public purpose; and WHEREAS, Iowa law requires that the City must make a good faith effort to negotiate with Owner to purchase the Property before proceeding with condemnation; and WHEREAS, City may not make an offer to purchase the Property which is less than the fair market value the City Council has established for the Property; and WHEREAS, City has caused an appraisal of the Property to be made and the appraised value of the Property is Nineteen Thousand Dollars ($19,000.00); and WHEREAS, the City Council now desires to establish a fair market value of the Property and to authorize acquisition of the Property by eminent domain is necessary. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 1. The fair market value of the Property is hereby established to be Nineteen Thousand Dollars ($19,000.00). 2. The City Council hereby authorizes the acquisition of the Property by eminent domain if necessary. 3. The City Attorney is hereby authorized to take such action as is necessary to acquire the Property as provided by law including acquisition of the Property by eminent domain. Passed, approved and adopted this 15t day of April, 2024. i Brad M. Cav a h, yor Attest: LIZ, Adrienne N. Breitfelder, City Clerk NOTICE OF INTENT TO APPROVE ACQUISITION OF PROPERTY BY EMINENT DOMAIN To: Ace Construction -Dubuque, L.L.C. c/o Louis Mihalakis 1212 Miller Road Dubuque, IA 52003 You are hereby notified that the City Council of the City of Dubuque, Iowa will meet on the 1st day of April, 2024, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, to consider the adoption of a resolution, a copy of which is attached hereto, authorizing the City to acquire the following property by eminent domain: All that part of Lots 193, 194, 195 and 196 lying North and West of Railroad, subject to Railroad Right of Way, and all in "Map of Eagle Point or Ham's Addition to the City of Dubuque 1854" (commonly known as Ham's Addition) in the City of Dubuque, Iowa, according to the recorded plat thereof You have the right to attend the meeting and to voice objection to the proposed acquisition of the property. Just as the law grants certain entities the right to acquire private property, you as the owner of property have certain rights. You have the right to: Receive just compensation for the taking of property. (Iowa Const., Article I, Section 18) An offer to purchase which may not be less than the lowest appraisal of the fair market value of the property. (Iowa Code §§ 6B.45, 6B.54) Receive a copy of the appraisal, if an appraisal is required, upon which the acquiring agency's determination of just compensation is based not less than 10 days before being contacted by the acquiring agency's acquisition agent. (Iowa Code §613.45) When an appraisal is required, an opportunity to accompany at least one appraiser of the acquiring agency who appraises your property. (Iowa Code § 6B.54) Participate in good faith negotiations with the acquiring agency before the acquiring agency begins condemnation proceedings. (Iowa Code §6B.3(1)) If you cannot agree on a purchase price with the acquiring agency, a determination of just compensation by an impartial compensation commission and the right to appeal its award to district court. (Iowa Code §§ 6B.4, 6B.7, and 6B.18) A review by the compensation commission of the necessity for the condemnation if your property is agricultural land being condemned for industry; (Iowa Code § 613AA) Payment of the agreed upon purchase price, or if condemned, a deposit of the compensation commission award before you are required to surrender possession of the property. (Iowa Code §§ 613.25, 6B.54(11)) Reimbursement for expenses incidental to transferring title to the acquiring agency. (Iowa Code §§ 6B.33, 6B.54(10)) Reimbursement of certain litigation expenses: (1) if the award of the compensation commissioners exceeds 110 percent of the acquiring agency's final offer before condemnation; and (2) if the award on appeal in court is more than the compensation commissioner's award. (Iowa Code § 6B.33) At least 90 days written notice to vacate occupied property. (Iowa Code § 6B.54(4)) Relocation services and payments, if you are eligible to receive them, and the right to appeal your eligibility for and amount of payments. (Iowa Code § 316.9) The rights set out in this Notice are not claimed to be a full and complete list or explanation of an owner's rights under the law. They are derived from Iowa Code Chapters 6A, 6B and 316. For a more thorough presentation of an owner's rights, you should refer directly to the Iowa Code or contact an attorney of your choice. Dated: y��laoa� Adrienne N. Breitfelder, City Clerk Crenna M. Brumwell, Esq. Dubuque City Attorney Suite 330, Harbor View Place 300 Main Street Alll4neCill!r Dubuque, Iowa 52001-6944 f (563) 589-4381 office (563) 583-1040 fax 2007 cbr-umwel@cityofdubuque.org March 6, 2024 Ace Construction — Dubuque, L.L.C. c/o Louis Mihalakis 1212 Miller Road Dubuque, IA 52003 RE: Property at 2325 Garfield Avenue Dear Mr. Mihalakis: THE CITY DUM E Masterpiece on the Mississippi Enclosed is a proposed resolution authoring the commencement of eminent domain proceedings for the acquisition of your property at 2325 Garfield Avenue. The City is required to provide you with a copy of this proposed resolution at least fourteen (14) days prior to the date of the City Council meeting at which the proposed resolution will be considered for adoption. The City Council will be asked to adopt the resolution at the City Council meeting on April 1, 2024. Sincerely, ecill— 9—kE Crenna Brumwell City Attorney Enclosure cc: Michael C. Van Milligen, City Manager