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Property Acquisition - Offer to Purchase 1980 Rockdale Road_Willis Copyright 2014 City of Dubuque Consent Items # 8. ITEM TITLE: Property Acquisition - 1980 Rockdale Road SUMMARY: City Manager recommending approval to acquire property located at 1980 Rockdale Road from Ruth Willis. RESOLUTION Approving the Acquisition of Real Estate Owned by Ruth A. Willis in the City of Dubuque, Iowa SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Property Acquisition 1980 Rockdale Road-MVM Memo Staff Memo ❑ Staff Memo Staff Memo ❑ Resolution Resolutions ❑ Offer to Buy Supporting Documentation ❑ Vicinity Map Supporting Documentation THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Rockdale Road Storm Sewer Project, Property Acquisition DATE: December 28, 2014 City Engineer Gus Psihoyos recommends City Council approval to acquire property located at 1980 Rockdale Road from Ruth Willis for her asking price of $125,000. Robert Felderman of Felderman Appraisals states that based on comparable sales, Mrs. Willis would be able to sell the property for her asking price if listed to the public. If 1980 Rockdale Road is acquired and removed by the City, there is no longer a need to spend $150,000 to install the large diameter storm sewer outlined in the Rockdale Road Storm Sewer CIP project. Instead, the building at 1980 Rockdale Road could be deconstructed and the property re-graded to pass stormwater from Rockdale Road harmlessly through the property without causing property damage. A second benefit of acquiring the property is that it would allow for more right-of-way along the narrowest stretch of Rockdale Road, which would allow for the future reconstruction of Rockdale Road with a standard street cross section with a sidewalk on at least one side of the roadway. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer Jennifer Larson, Budget Director THE CITY OF Dubuque WAmeHcaCfty .UU rb E; 11111'I Masterpiece on the Mississippi zoo;•zoia•zois TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer _ l� SUBJECT: Rockdale Road Storm Sewer Project, Property Acquisition DATE: December 22, 2014 INTRODUCTION The purpose of this memo is to request authorization to acquire property for the Rockdale Road Storm Sewer Project. BACKGROUND The Capital Improvement Program (CIP) for Fiscal Years 2015-2019 included the Rockdale Road Storm Sewer Project with funding to be appropriated in Fiscal Year 2017. As outlined in the CIP, the "project provides for the installation of 350 feet of 66-inch diameter storm sewer along Rockdale Road in the vicinity of 1980 Rockdale Road." And the justification for the project is grounded in the fact that the properties along the Rockdale Road corridor have suffered damage multiple times since 1999 as a result of the runoff from Rockdale Road area during heavy rainstorms. DISCUSSION The City received a letter on October 15, 2014 from Ms. Ruth Willis stating that she is willing to sell her property at 1980 Rockdale Road for a price of$125,000.00. There are two reasons for the City to consider acquiring her property. If 1980 Rockdale Road is acquired and deconstructed by the City, there is no longer a need to spend $150,000.00 to install the large diameter storm sewer outlined in the Rockdale Road Storm Sewer CIP project. Instead, the building at 1980 Rockdale Road could be removed and the property re-graded to pass stormwater from Rockdale Road harmlessly through the property without causing property damage. A second benefit of acquiring the property is that it would allow for more ROW along the narrowest stretch of Rockdale Road which would allow for the future reconstruction of Rockdale Road with a standard street cross section with a sidewalk on at least one side of the roadway. 1 I City staff consulted with Mr. Robert Felderman of Felderman Appraisals. Based on comparable sales, Ms. Willis would be able to sell the property for her asking price if listed to the public. Ms. Willis' asking price reflects her desire to sell the property before winter. BUDGETIMPACT The $150,000.00 in funding for the Rockdale Road Storm Sewer Project was programmed for FY2016. Stormwater funds currently set aside for the Kane, Kaufmann, and McDonnell Lane Storm Sewer Reconstruction Project [CIP#7202133] will be used to purchase the Rockdale Road property prior to the availability of the FY2016 funds for the Rockdale Road Storm Sewer Project. The necessary improvements associated with CIP#7202133 will be delayed until FY2016, when the funds for the Rockdale Road Storm Sewer Project become available. RECOMMENDATION recommend the City acquire the Willis property at 1980 Rockdale Road for the asking price of$125,000.00. Attach. Prepared by Deron Muehring cc: Barry Lindahl, City Attorney 2 RESOLUTION NO. 02-15 APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY RUTH A. WILLIS IN THE CITY OF DUBUQUE, IOWA Whereas, the City of Dubuque intends to acquire the property located at 1980 Rockdale Road, Dubuque, Iowa (the Property) owned by Ruth A. Willis; and Whereas, the Property is not currently part of or located within the Bee Branch Creek Restoration Project or any other federally funded public improvement project; and Whereas, the acquisition of the Property is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1 A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, an Offer to Buy and Acceptance has been negotiated with the owner of the Property, a copy of which is attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa hereby approves the Offer to Buy and Acceptance. Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the Property. Section 3. That the City Clerk be and is hereby authorized and directed to cause the Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Section 4. That the City Clerk be and is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. Attest: Passed, approved and adopted this 5th day of January, 015. • D7 D Trish L. Gleason, Assistant City Clerk Roy D. Buol, Mayor THE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi BARRY LIND, H CITY ATTOR To: Kevin Firnstahl City Clerk DATE: January 7, 2015 RE: Purchase of Property from Ruth A. Willis — 1980 Rockdale Road On January 5, 2015, the City entered into an agreement with Ruth A. Willis to purchase the property located at 1980 Rockdale Road. Attached for your file is the original Offer to Buy, fully executed on January 5, 2015. We closed yesterday on the above -referenced property. Also attached, for approval at the January 20, 2015 City Council meeting is the Resolution Accepting Deed to 1980 Rockdale Road, as well as the original Warranty Deed, executed by Ruth A. Willis on January 6, 2015. Once the City Council accepts the Deed at the January 20, 2015 City Council meeting, I would appreciate it if you would record the attached original documents in the following order: 1. Resolution no. -15 Accepting the Deed to Certain Real Property, as well as the accompanying Warranty Deed; 2. Declaration of Value; 3. Groundwater Hazard Statement; and 4. Affidavit of Surviving Spouse For Change of Title to Real Estate. Also attached is City of Dubuque check. no. 417955 for the amount of $199.20 for the transfer tax. Thank you. BAL:tls Attachment cc: Gus Psihoyos, City Engineer F:\USERS\tsteckle\Lindahl\1980 Rockdale Road - Willis Ruth\Firnstahl_OrigDocs&CheckFor0120Meeting&Recording_010715.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Ruth A. Willis, Seller SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy all of Seller's right, title, and interest in and to the real estate in Dubuque County, Iowa, described as follows: Lot 2 of Lot 1 of Lot 7 of Mineral Lot 501 in the City of Dubuque, Iowa, according to the recorded Plat thereof; and Lot 2 of Lot 1 of Lot 1 of Lot 1 of Lot 1 of Lot 2 of Lot 7 in the City of Dubuque, Iowa, according to the recorded Plat thereof as shown on the exhibit attached hereto (the Real Estate) together with any easements and appurtenant servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants of record; c. any easements of record for public utilities, roads, and highways designated the Real Estate. SECTION 2. PURCHASE PRICE. The Purchase Price shall be as follows: $125,000.00, cash at closing. Subject to all of the terms and conditions herein. SECTION 3. REAL ESTATE TAXES. Taxes for the fiscal year in which the closing takes place shall be paid by Seller prorated to the date of possession. Seller shall also pay any unpaid real estate taxes for prior fiscal years. SECTION 4. POSSESSION. If Seller timely performs all obligations, and all contingencies are met or waived, possession of the Real Estate shall be delivered to Buyer on January 6, 2015 (the Closing Date), or such other date as the parties may agree in writing with any adjustments of taxes, rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 5. ABSTRACT AND TITLE. Seller, at Seller's expense, shall promptly obtain a lien search or an abstract of title to the Real Estate continued through the date of acceptance of this offer, and deliver it to Buyer for examination. It shall show merchantable title in Seller in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyer when the purchase price is paid in full. Seller shall pay the costs of any additional necessary abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or its assignees. 121914ba1 SECTION 6. DEED. Upon payment of the purchase price, Seller shall convey the Real Estate to Buyer by Warranty Deed, free and clear of all liens, restrictions, and encumbrances. SECTION 7. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If Seller, immediately preceding acceptance of this offer, holds title to the Real Estate in joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the Seller, then the proceeds of this sale, and any continuing or recaptured rights of Seller in the Real Estate, shall belong to Seller as joint tenant with full rights of survivorship and not as tenant in common; and Buyer, in the event of the death of Seller, agrees to pay any balance of the price due Seller under this contract to the surviving Seller and to accept a deed from the surviving Seller consistent with Section 11. SECTION 8. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a titleholder immediately preceding acceptance of this offer, executes this contract only for the purpose of relinquishing all rights of dower, homestead, and distributive shares or in compliance with Section 561.13 of the Iowa Code and agrees to execute the deed or real estate contract for this purpose. SECTION 9. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 10. REMEDIES OF THE PARTIES. 10.1 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 days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty 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. 10.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to it. 10.3 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 11. APPROVAL OF COURT. If the sale of the Real Estate is subject to Court approval, the fiduciary shall promptly submit this contract for such approval. If this contract is not so approved, it shall be void. SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. SECTION 13. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. SECTION 14. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before December 1, 2014, it shall become void and all payments shall be repaid to the Buyer. SECTION 15. OTHER PROVISIONS. 15.1 The Offer is subject to final approval of the City Council of the City of Dubuque, Iowa in its sole discretion. 15.2 Buyer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Real Estate and all parts thereof, upon reasonable notice to Seller for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, provided that Buyer shall hold Seller harmless and fully indemnify Seller against any damage, claim, liability or cause of action arising from or caused by the actions of Buyer, its agents, or representatives upon the Real Estate (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Real Estate), and shall have the further right to make such inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as Buyer considers appropriate. 15.3 Seller warrants that the rights of all tenants shall be terminated by Seller prior to closing and that there will be no tenants whose rights in the Real Estate survive the closing. This covenant shall survive the closing. 15.4 Environmental Provision. (1) Seller warrants to the best of its knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, underground storage tanks, burial sites or private wastewater disposal systems located on the Real Estate, the Real Estate does not contain radon gas, asbestos or asbestos containing building materials, or urea -formaldehyde foam insulation, and Seller has done nothing to cause or allow contamination of the Real Estate with hazardous wastes, substances, or pollutants. Seller warrants to the best of its knowledge and belief that the Real Estate is not subject to any local, state, or federal judicial or administrative action, investigation or order regarding any environmental matter. Seller shall provide Buyer with a properly executed Groundwater Hazard Statement showing no wells, solid waste disposal sites, hazardous wastes, underground storage tanks, private burial sites or private wastewater disposal systems on the Real Estate which shall be considered a warranty and representation by Seller to Buyer. (2) Following closing, should the Buyer learn that the environmental condition of the Real Estate requires assessment and/or corrective action pursuant to local, state or federal law, for matters first arising during the time period the Real Estate was controlled by Seller, Seller shall take all action as may be required by law to fully address the environmental condition and Seller shall indemnify and hold harmless the Buyer from any claims and costs, including attorneys' fees and consultants' fees, arising therefrom. (3) These environmental provisions shall survive closing. 15.5 Until ten (10) days prior to closing, Buyer shall have the right to terminate this agreement if environmental issues exist on the Real Estate that Buyer determines in its sole discretion do not permit Buyer to use the Real Estate for its intended use. Prior to terminating this Agreement pursuant to this section, Buyer shall offer Seller the opportunity to remediate the Real Estate to the satisfaction of Buyer in its sole discretion and at Seller's sole cost. CITY OF DUBUQUE, IOWA Dated: By: //i-- Li" THIS OFFER IS ACCEPTED Dated: By: Michael C. Van Milligen `l;uth A. Willis City Manager THE CITY pF 1980 Rockdale Road Dus E DAGIS ou BuquE Ax EA c[oc.AVMic INFORMATION srsr[M Masterpiece on the Mississippi l 8i1 58`' s 18991' "�• 1901 .'IRs _ � ,C ��� � • _�• ! 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It is understood that,while City of Dubuque the City of Dubuque and participating agencies utilized the most current and accurate information available,DAGIS and `n/ E Engineering Division it's suppliers do not warrant the accuracy or currency of the 1 inch — 200 feet V V information or data contained herein.The City and participating 50 West 13th Street agencies shall not be held liable for any direct,indirect,incidental, Dubuque,Iowa 52001 uonsequent,l,punitive,or special damages,whether foreseeable or nforeseeable,arising out of the authorized or unauthorized use of 200 100 0 200 Feet Phone:(563)589-4270 this data or the Inability to use this data or out of any breach of C warranty whatsoever_ J Fax:(563)589 4205