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Public Hearing for Sale of City-Owned Lot at 627 Rhomberg Ave.City of Dubuque City Council Meeting Public Hearings # 02. Copyrighted May 6, 2024 ITEM TITLE: Public Hearing for Sale of City -Owned Lot at 627 Rhomberg Ave. SUMMARY: Proof of publication on notice of public hearing to consider City Council authorize the Mayor to execute the Resolution for disposition of City -owned real property located at 627 Rhomberg, as presented, and City Manager recommending approval. SUGGESTED DISPOSITION: ATTACHMENTS: Description MVM Memo RESOLUTION Disposing of city interest in real property at 627 Rhomberg, in the City of Dubuque, Iowa Suggested Disposition: Receive and File; Adopt Resolution(s) 627 Rhomberg PH - Staff Memo 627 Rhomberg PH - Resolution 627 Rhomberg PH - Purchase Agreement 627 Rhomberg PH - Special Warranty Deed Type City Manager Memo Staff Memo Resolutions Supporting Documentation 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: Public Hearing for Sale of City -Owned Lot at 627 Rhomberg Ave. DATE: April 30, 2024 Housing & Community Development Director Alexis Steger is recommending City Council hold a public hearing and authorize the Mayor to execute the Resolution for disposition of City -owned real property located at 627 Rhomberg, as presented. The City of Dubuque acquired the property at 627 Rhomberg Avenue by petition for title of abandoned property in April 2019. When the property was acquired, there was a single-family dwelling on the lot that was deemed uninhabitable and not economically viable for rehabilitation. The structure was deconstructed shortly thereafter, and the lot has been vacant since that time. The Housing Department maintains the grass and snow removal for the property. In 2023, the owner of the neighboring commercial structure located at 629 Rhomberg Ave., Karl Williams, approached the Housing Department, requesting to purchase the lot adjoining his building. The City of Dubuque entered a Purchase Agreement with Mr. Williams on April 9, 2024, to purchase the lot at 627 Rhomberg for $10,768.68. 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 Maddy Haverland, Urban Development and Housing Rehabilitation Project Manager THE CITY OF Dubuque D B E 1 I-hmerica .1 U1111 Masterpiece an the Mississippi W,.Zo,Z.Z..... To: Michael C. Van Milligen, City Manager From: Alexis M. Steger, Housing & Community Development Director Subject: Public Hearing for Sale of City -Owned Lot at 627 Rhomberg Ave. Date: April 29, 2024 INTRODUCTION The purpose of this memorandum is to request that the City Council hold a Public Hearing for the purpose of disposing of City -owned real property located at 627 Rhomberg Ave. BACKGROUND The City of Dubuque acquired the property at 627 Rhomberg Avenue by petition for title of abandoned property in April 2019. When the property was acquired, there was a single-family dwelling on the lot that was deemed uninhabitable and not economically viable for rehabilitation. The structure was deconstructed shortly thereafter, and the lot has been vacant since that time. The Housing Department maintains the grass and snow removal for the property. In 2023, the owner of the neighboring commercial structure located at 629 Rhomberg Ave., Karl Williams, approached the Housing Department, requesting to purchase the lot adjoining his building. The City of Dubuque entered a Purchase Agreement with Mr. Williams on April 9, 2024, to purchase the lot at 627 Rhomberg for $10,768.68. RECOMMENDED ACTION I respectfully request the City Council hold a public hearing and authorize the Mayor to execute the Resolution for disposition of 627 Rhomberg, as presented. Prepared by: Maddy Haverland, Urban Development and Housing Rehabilitation Project Manager Prepared by Maddv Haverland, Housing & Community Devei. 350 W. V, St., Suite 312 Telephone: (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 126-24 DISPOSING OF CITY INTEREST IN REAL PROPERTY AT 627 RHOMBERG, IN THE CITY OF DUBUQUE, IOWA Whereas, the City Council, by Resolution No. 96-24, dated April 15, 2024, declared its intent to dispose of City interest in real property located at 627 Rhomberg Avenue (the Property) legally described as: Lot 2 of Lot 1 of Lot 35 in Cook's Addition to the City of Dubuque, Iowa, according to the recorded plat thereof; and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on May 6, 2024, at 6:30 p.m. in the Historic Federal Building, 350 W. 61h Street, Dubuque, Iowa; and Whereas, it is the determination of the City Council that approval of the purchase agreement for the sale to Karl Williams 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 Karl Williams, 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 Karl Williams. 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 6th day of May 2024. Attest Brad M. vanagh, Mayor aw- "-- A44�-_ Adrienne Breitfelder, City Clerk dotloop signature verification: dt1p.us/rt6b-0MVS-xH48 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 627 Rhomberg Ave, Dubuque, IA 52001 and legally described as: Lot 2 of Lot 1 of Lot 35 in Cook's Addition to the City of Dubuque, Iowa, according to the recorded 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 ten thousand seven hundred sixty-eight dollars and sixty-eight cents ($10,768.68). SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable for fiscal year July 1, 2022 to June 30, 2023 (payable September, 2023 and March, 2024), and real estate taxes, including any tax sale certificates, for prior years. Seller shall also pay prorated real estate taxes for the fiscal year July 1, 2023 to June 30, 2024, prorated, however, to 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 1 dotloop signature verification: dt1p.us/rt6b-0MVS-xH48 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 May 30, 2024 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 F] dotloop signature verification: dt1p.us/rt6b-0MVS-xH48 extend to the time of delivery of the deed excepting liens and encumbrances suffered or 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. dotloop signature verification: dt1p.us/rt6b-0MVS-xH48 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. Karl Williams 186 North Main Street Potosi, WI 53820 City of Dubuque Attn: Alexis Steger 50 W. 13th 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 April 9, 2024, 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 Section 25 shall in all respects survive the closing. 4 dotloop signature verification: dtlp.us/rt6b-OMVS-xH48 SELLER CITY OF DUBUQUE, IOWA dotloop verified ����(��rf�lf�P%�� DT By: 9/24 9:06 AM l/ 2JCF-AVHI-A9UW-LTLI Alexis Steger, Housing Director Dated: 04/09/2024 BUYER KARL WILLIAMS dotloop �verified I'V�irQ� DT 9/24 1037 AM By: 89PX-SK6X-UYTA-YSIN Karl Williams 04/09/2024 Dated: 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: Karl Williams 186 !North Main Street Potosi, Wl 53820 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 ten thousand seven hundred sixty eight dollars and sixty eight cents ($10,768.68) and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL, AND CONVEY unto KARL WILLIAMS, a single person, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 2 of Lot 1 of Lot 35 in Cook's Addition to the City of Dubuque, Iowa, according to the recorded plat thereof (627 Rhomberg Avenue) This Deed is exempt from transfer tax pursuant to Iowa Code Section 428A.2(6). There is no known private burial site, well, solid waste disposal site, underground storage tank, hazardous waste, or private sewage disposal system on the property as described in Iowa Code Section 558.69, and therefore the transaction is exempt from the requirement to submit a groundwater, hazard statement. This Deed is given pursuant to the authority of Resolution No. 14-2-11 of the City Council of the City of Dubuque adopted the 6th day of May, 2024, 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 2024 at Dubuque, Iowa. CITY OF DUBUQUE, IOWA By: Brad M. Cavan ag yor Attest: By: S,.e Adrienne Breitfelder, City Clerk STATE OF IOWA SS COUNTY OF DUBUQUE On this `a day of i1'lckV , 2024, before me a Notary Public in and for said County, personally appeared Brad Cavanagh and Adrienne Breitfelder to me personally known, who being 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. ry Public in and for Dubuque County, Iowa TUSDEE LYNN BLUS Commission Number 842478 ,o My Comm. Exp. ," w 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: 04/26/2024 and for which the charge is 64.58 c Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 26th day of April, 2024 Notary ub 'c in and for Dubuque County, Iowa. JAHEI' 9d . PAPS o commission Numt)ar'i99659 ? My commission Expires law` ;' 12111 /2025 SILOIaoa14 P4AA �r J' we -A Ad text : CITY OF DUBUQE, 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 6th day of May 2024, 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 Karl Williams: Lot 2 of Lot 1 of Lot 35 in Cook's Addition to the City of Dubuque, Iowa, according to the recorded plat thereof locally known as 627 Rhomberg Ave. 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 15th day of April 2024. Adrienne N. Breitfelder, City Clerk RESOLUTION NO. 96-24 INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE TO KARL WILLIAMS, SETTING A TIME AND PLACE FOR HEARING, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF Whereas, the City of Dubuque, Iowa (City) owns 627 Rhomberg Avenue (the Property) legally described as: Lot 2 of Lot 1 of Lot 35 in Cooks Addition to the City of Dubuque, Iowa, according to the recorded plat thereof; and Whereas, the City acquired the property through 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 Karl Williams 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 Karl Williams. 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 6th day of May 2024, beginning at 6:30 PM. Section 2. 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 15th day of April 2024. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk It 4/26