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Property Acquisition - Doris A. Graf Farm
Copyright 2014 City of Dubuque Action Items # 2. ITEM TITLE: Property Acquisition - Doris A. Graf Farm SUMMARY: City Manager recommending approval of an Offer to Buy Real Estate and Acceptance to purchase the 166.3 acre Graf Farm. RESOLUTION Approving the Acquisition of Real Estate Owned by Doris A. Graf in Dubuque County, Iowa SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type E Graf Property Acquisition -MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Resolution Resolutions E Offer To Buy Real Estate And Acceptance Supporting Documentation THE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Industrial Park Land Acquisition: Graf Farm DATE: April 2, 2015 Dubuque band AI -America City r 2007 • 2012 • 2013 City Attorney Barry Lindahl is recommending approval of the Offer to Buy Real Estate and Acceptance to purchase the 166.3 acre Graf Farm at $12,500 per acre for a total of $2,078,570. City Attorney Barry Lindahl, Economic Development Director Maurice Jones, City Engineer Gus Psihoyos and City Project Manager Steve Brown have been working with Greater Dubuque Development Corporation President & CEO Rick Dickinson to identify a place for the City's next industrial park. In 1995, the Mayor and City Council adopted the first Comprehensive Plan for the City of Dubuque since the previously adopted 1936 Comprehensive Plan. This was the culmination of five years of work by the newly formed Long Range Planning Commission chaired by Dave Rusk. The process began in 1990 with the Vision 2000 document, adopted in 1993, and culminated in the adoption of the 1995 Comprehensive Plan. Thousands of citizens participated in this process. The 1995 Comprehensive Plan was updated in 2002, 2008, and 2012. The Dubuque Comprehensive Plan includes the following: "LAND USE & URBAN DESIGN GOALS Goal Three: To provide sufficient opportunities for industrial development sites within the community. Objectives: 3.1 promote the retention and expansion of existing, and attraction of new, industrial development opportunities in suitable locations, . . . 3.3 encourage annexation of land suitable for industrial usage if necessary ECONOMIC DEVELOPMENT GOALS Goal One: To reduce unemployment, achieve economic stability, and increase the standard of living for all citizens. Obiective 1.2 promote diversification of the commercial/industrial base. Goal Twelve: To promote the provision of an adequate supply of vacant, development -ready land for commercial and industrial use. Obiectives 12.3 evaluate potential commercial and industrial development sites, based on the city's future land use map 12.6 consider annexing growth areas, as necessary and as possible, to ensure adequate supply of developable land and to control development on the city's fringe." Acquisition of additional industrial park land is consistent with the Mayor and City Council 5 -year goals, which includes Planned and Managed Growth, and Sustainability. One of the three pillars of Sustainability is Economic Prosperity. Included in the twelve principles of Sustainability are Support for Community Design and the Regional Economy. The priorities established by the City Council include Annexation and this acquisition will bring 166 acres into the City. Included by the City Council in the Management Agenda is industrial park expansion, including acquisition and infrastructure. The City of Dubuque has had tremendous success with economic development receiving multiple national recognitions for job creation. This is in no small part to the City's decision in the mid 1990's to acquire and develop over 900 acres of property to provide a 20 -year supply of industrial park land. These 900 acres are now called Dubuque Technology Park, Dubuque Industrial Center West, Dubuque Industrial Center North and Dubuque Industrial Center South. It should not be forgotten that preceding the City's efforts was the development in the 1980's of the Dubuque Industrial Center by Dubuque Initiatives. These industrial parks now are home to 49 businesses employing over 4,400 people. These businesses have constructed 4 million square feet of buildings and invested well over $200 million. None of this would have been possible without the City's partnerships with Dubuque Initiatives, the Greater Dubuque Development Corporation, Dubuque County (who donated the County Farm to this effort) and supports the use of Tax Increment 2 Financing to make these projects work), the Dubuque Community School District and Northeast Iowa Community College, who have also supported the use of Tax Increment Financing, the Greater Dubuque Development Corporation, federal and state funding, the many property owners who have cooperated in selling their land, and, most importantly, the businesses who have chosen to make Dubuque their home. In December 2014, there were 61,700 people working in Dubuque County with a 3.9% unemployment rate. This is 1,800 net new jobs over December 2013. Compare this is the lows of the 1980's, over 24% unemployment, 38,600 people working in Dubuque County. With just 3% of Iowa's population, from 2009-2013, Dubuque County achieved 8.1 % of the state's job growth. The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in 2013, an increase of 30% that exceeded inflation by 17.5%. Between 2000 and 2013, Dubuque's per capita income rose by 40%, exceeding the national growth by 3.5%. In 2000, Dubuque's Median Household Income (MHI) ($39,582) was 6% below the national MHI ($41,994). In 2012, Dubuque's MHI ($50,885) was just 1% below the national MHI ($51,017). Between 2008 and 2013, the average home price in Dubuque grew by 9.71 %, more than Sioux City (8.83%), Waterloo (6.28%), Iowa City (5.32%), the Quad Cities (3.93%), Cedar Rapids (1.33%), Council Bluffs (1.02%), Des Moines/West Des Moines (-0.50%), Chicago (-18.56%), Daytona Beach (-24.08%) and the national average (-0.15%) The City is greatly appreciative of the cooperation of the Graf family in this acquisition process. The City will be acquiring 166 acres of land, just west of the existing industrial parks. Once developed, this will provide approximately 80 acres of buildable land, depending on access and grading plans. The purchase price is $2,078,750 or $12,500 per acre. The estimated site development costs are $7.4 million. The total costs per developable acre when fully developed is estimated at $120,000. This compares favorably with the asking price of $120,000 per acre for current industrial park property. The City previously issued debt using Dubuque Industrial Center Urban Renewal District Tax Increment Financing revenues to fund this purchase. 3 I respectfully request Mayor and City Council approval of the purchase of the Graf property. .�st✓�'�t Y � Mic ael C. Van Milligan MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager 4 THE CITY OF DUB 7E MEMORANDUM Masterpiece on the ssissippi BARRY LIND CITY ATTOR EY To: Mich: e C. Van Milligen City Manager DATE: March 16, 2015 RE: Purchase of Graf Farm Attached is a copy of an Offer to Buy Real Estate and Acceptance for the Graf Farm signed by Doris A. Graf. The Agreement is for the purchase of 166.3 acres at $12,500 per acre for a total of $2,078.750. The Offer is subject to final approval of the City Council. I recommend that the Offer to Buy Real Estate and Acceptance be submitted to the City Council for consideration. BAL:tls Attachment cc: Gus Psihoyos, City Engineer Todd Irwin, Engineering Technician F:\USERS\tsteckle\Lindahl\Graf - Industrial Park Land Acquisition\MVM_ExecutedOfferToBuy_031615.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 RESOLUTION NO. 119-15 APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY DORIS A. GRAF IN DUBUQUE COUNTY, IOWA Whereas, Doris A. Graf is the owner of the following real property (the Property): Lot one (1) of Graf Farm Subdivision #2, Dubuque County, Iowa, according to the recorded plat thereof; Lot 1 of Lot 1 of Lot 1 of Lot 1 of West One-half of Northeast One- quarter, Section 25, Township 89 North , Range 1 East of the 5th Principal Meridian, in Center Township , Dubuque County , Iowa; Lot 2 in "W.A. Norman Place" in Section 25, Center Township, Dubuque County, Iowa, according to the plat thereof; and The NW 1/4 of the SE 1/4 of Section 25, Township 89 North, Range 1 East of the 5th P.M., in Center Township, Dubuque County, Iowa; and Whereas, the City Manager has tentatively agreed to purchase the Property from Doris A. Graf, subject to the approval of an Offer to Buy Real Estate and Acceptance between City and Doris A. Graf by the City Council; and Whereas, the City Council has determined that it would be in the best interests of the City to approve the purchase of the Property from Doris A. Graf. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council hereby approves the Offer to Buy and Acceptance attached hereto. Section 2. The City Manager and City Attorney are authorized to take such further action as is required to complete the purchase of the Property. Passed, approved and adopted this 6th day of April, 2015. Attest: Trish L. Gleason, Assistant City Clerk y D. Buol, Mayor THE CITY OF DUB MEMORANDUM Masterpiece on the Mississippi TRACEY STECKLEIN PARALEGAL MEMO To: Trish Gleason Assistant City Clerk DATE: April 8, 2015 RE: Graf Offer to Buy Trish: Attached for your file is the fully executed original Graf Offer to Buy Real Estate and Acceptance which was approved by the City Council at its April 6, 2015 City Council meeting. We will retain a copy for our files. Thanks. © F:\USERS\tsteckle\Lindahl\Graf - Industrial Park Land Acquisition\Gleason_OriginalFullyExecutedOfferToBuy_040815.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 tsteckle@cityofdubuque.org Prepared by: Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001-4113 Return to: Barry Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001-4113 OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Doris A. Graf, Seller: SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: Lot one (1) of Graf Farm Subdivision #2, Dubuque County, Iowa, according to the recorded plat thereof; Lot 1 of Lot 1 of Lot 1 of Lot 1 of West One-half of Northeast One- quarter, Section 25, Township 89 North , Range 1 East of the 5th Principal Meridian, in Center Township , Dubuque County , Iowa; Lot 2 in `1N.A. Norman Place" in Section 25, Center Township, Dubuque County, Iowa, according to the plat thereof; and The NW 1/4 of the SE 1/4 of Section 25, Township 89 North, Range 1 East of the 5th P.M., in Center Township, Dubuque County, Iowa 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. 166.3 acres at $12,500.00 per acre, cash at closing. TOTAL: $2,078,750.00 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 Buyer timely performs all obligations, possession of the Real Estate shall be delivered to Buyer on June 5, 2015, or on such other date as the parties agree in writing, with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 5. ABSTRACT AND TITLE. Seller, at Buyer's expense, shall promptly obtain 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 021815ba1 Bar Association. The abstract shall become the property of the Buyer when the purchase price is paid in full. Buyer shall pay the costs of any additional necessary abstracting and title work. 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. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 8. REMEDIES OF THE PARTIES. 8.1 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. 8.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to them. 8.3 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 9. 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 10. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. SECTION 11. 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 12. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before March 5, 2015, it shall become void and all payments shall be repaid to the Buyer. SECTION 13. OTHER PROVISIONS. 13.1 The Offer is subject to final approval of the City Council of the City of Dubuque, Iowa in its sole discretion. 2 13.2 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. 13.3. Environmental Provisions. (1) Seller warrants to the best of her 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 her 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. The warranties in this Section 13.3(1) shall survive the closing. (2) Within five (5) days following acceptance of this Offer, Seller shall provide Buyer with copies of any and all documentary information regarding the environmental and physical condition of the Real Estate within Seller's reasonable access. (3) Following acceptance of this Offer, 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. Seller agrees to cooperate with Buyer with respect to such inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, by providing such information, including documentary information, as Buyer may request and is within reasonable access to Seller. (4) For a period of 60 days after acceptance of this offer, 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, provided, however, that prior to terminating this 3 Agreement pursuant to this section, Buyer shall give Seller written notice specifying such issues and notifying Seller of Buyer's intent to terminate. Seller shall have a period of five (5) days after receipt of such notice in which to notify Buyer in writing that Seller will remedy the specified condition(s) of the Real Estate to the satisfaction of Buyer in its sole discretion, at Seller's sole cost. Seller shall also include in its notice a description of the remediation action Seller intends to take, the standard to be applied to such remediation, and the schedule for such remediation. If Seller elects to remediate, Buyer shall have ten days following receipt of Seller's notice to accept or reject such notice in Buyer's sole discretion. If Buyer elects to accept the notice, this Agreement shall not be terminated, but closing may be deferred pending completion of such remediation if Seller promptly undertakes remediation and pursues remediation with reasonable diligence, and provided Seller's notice shows that such remediation can be completed by not later than SES ti X15'. If all remediation is not completed by such date, Buyer may terminate this Agreement. 13.4 Notice. The following shall be used for purposes of providing written notice pursuant to this Agreement. City of Dubuque City Manager 50 West 13th Street Dubuque IA 52001 Doris A. Graf CITY OF DUBUQUE, IOWA Dated: By (1 /f Michael C. Van Milligen City Manager 4 THIS OFFER IS ACCEPTED Dated: 3 Doris A. Graf II I IF crrY OF DUB Alas6'rpie,,,,,, the Mississippi GRAF PROPERTY tsctntaaear Thn information ours co0„uvea ii .. i rDubuque a ma a °eoploy. Info...Info...System . the I. welfb IneluUes oto cleatetl by both the City of o. d Dubueue County It Is unaerstooa that, wt. .. DuDuque andino agenciesutilized tn. •, • ural ainformation avaable. DAGIS ti do not wart tit the occur acv u, outran, v or 11 or data conga tied herein. Tile City and .Hall not be tial liable for Oily direct, inlur.,.i vi. �. lpunitive, or special damages, whethor n. n aCle, rising ou of the authorized or unauthorized use of it. date or the inability t use this nett of out of any 1.04.610f -XISTING CORPORATE LIMITS ci i v OF DUBUQUE LEGAL DESCRIPTION: SEE MAP AREA : 166 ACRES - OWNER : GRAF, JAMES J & DORIS A PARCEL ID NO.: 0925251001, 0925401001, LOT 1 GRAF FARM SUR NO. 2, 0925326001 • gill 1111 i4 inl1111111111 NMI BIM= • DAGIS ism 1 • / a'I 11 e �PA. ► Mir r.- 7 I/Ap. Or 1 inch = 1,000 feet 500 250 0 500 11000 1,500 Feet VV SUBJECT PROPERTY BOUNDARY Map Prepared by - City of Dubuque Engineering Division 50 West 13th Street Dubuque, Iowa 52001 Phone: (563) 589-4270 Fax'(563t 589-4205 01087211-1 10422-000