Purchase of Properties in Washington NeighborhoodTHE CITY OF Dubuque
-~... ~'
,, _:
DUB E ~'.~;~~~
4 F. ~? ~ r
Masterpiece on the Mississippi ~ {
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Properties in the Washington Neighborhood
DATE: January 15, 2008
Housing and Community Development Department Director David Harris recommends
City Council approval to purchase two vacant residential properties for the purpose of
their rehabilitation and resale, as part of Washington Neighborhood revitalization
activities.
The two structures were purchased last summer, along with two other parcels, by Elm
Street Development LLC, due to their potential as sites for future commercial
development. City staff was informed by neighborhood residents about concerns with
turning the residential section of the Washington Neighborhood into commercial
property. Realizing this elimination of some owner-occupied housing was counter to the
City Council's priorities, I contacted the developer, Wayne Briggs, to express my
concern. At significant financial loss, Wayne Briggs agreed to not pursue his
commercial development.
The structures are located at 351 East 15th Street and 1523 Elm Street. (A third home,
located between the two subject properties at the corner of Elm and 15th Streets, was
also purchased and has already been resold to a first-time homeowner, with City
financial assistance.)
Elm Street Development purchased the property at 356 East 15th Street for $65,000;
and the property has an assessed value is $36,000. City staff estimates $38,000 in
rehabilitation costs. It has been offered to the City at $55,000. It is estimated the after-
rehab resale value is $75,000 to $80,000. Accordingly, a loss of $13,000 to $18,000 is
projected.
Elm Street LLC purchased the property at 1523 Elm Street for $51,500; and the
property has an assessed value is $32,000. City staff estimates $24,000 for necessary
rehab. It has been offered to the City for $50,000, and its after-rehab resale value is
estimated at $65,000 to $70,000. Accordingly, a loss of $4,000 to $9,000 is projected.
Housing and Community Development Department Director David Harris recommends
City Council approval to purchase the property at 351 East 15~h Street for $55,000, and
the property at 1523 Elm Street for $50,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
ti
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
THE CITY OF
DuB E
Masterpiece on the Mississippi
3 January 08
MEMORANDUM
To: Mi Van Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Purchase of properties in the Washington Neighborhood
Introduction
The purpose of this memorandum is to request the City Council's authorization to
purchase two vacant residential properties for the purpose of their rehabilitation
and resale, as part of Washington Neighborhood revitalization activities.
Discussion
The two structures were purchased last summer by Elm Street Development
LLC, due to their potential as sites for future commercial development. When
these plans were not realized, the properties were offered to the City.
They are located at 351 East 15th Street and 1523 Elm Street. (A third home,
located between the two subject properties at the comer of Elm and 15th Streets,
was also purchased and has already been resold to a first-time home owner, with
City financial assistance. )
The house at 351 East 15th is an 1890 two-story frame dwelling, on a small,
irregularly-sized lot, with one parking space off the alley. It contains three
bedrooms and 2180 square feet of finished space.
Elm Street Development purchased the property for $65 000; assessed value is
$36 000. We estimate $38 000 in rehabilitation costs. It has been offered to the
City at $55 000. We estimate its after-rehab resale value at $75-80 000.
Accordingly, we project a $13-18 000 loss at sale.
The house at 1523 Etm Street is also an 1890 two-story frame structure, on a
full-sized lot with parking for two vehicles off the alley. It is a much smaller home
(1240 square feet), with only four rooms, including two bedrooms.
Elm Street LLC purchased it for $51 500; assessed value is $32 000. We
estimate $24 000 for necessary rehab. ft has been offered to the City at
$50 000. We estimate after-rehab resale value at $65-70 000. This projects to a
loss at sale of $4000 to $9000.
Recommendation
While we do project a loss at sale of these properties, there is both reason and
precedent for the recommendation to purchase. The explanation is that market
conditions in this neighborhood, at this time, make investment difficult. In many
cases, properties cannot be purchased and improved -and then resold at a
profit. With even the modest level of rehabilitation we would accomplish with
these homes, the investment cost will exceed market value, resulting in loss at
resale.
The reason to do so is that, in the absence of public investment -which, over
time, will theoretically result in increased private activity, more improved homes
and, finally, rising property values -the market remains depressed for housing in
this neighborhood.
The precedent is our DREAMS Program, initiated in 1993. The Housing
Department purchased approximately 30 abandoned, derelict houses, recruited
first-time buyer families, formed partnerships with area lenders to provide first
mortgage financing and converted these properties into 30 owner-occupied
homes. Using HUD funds, we averaged a $9600 loss on each home (as a
forgivable loan); the average initial increase in appraised value was $46 000.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing purchase of properties located at 351 East 15th Street and 1523 Elm
Street, in association with Washington Neighborhood revitalization activities.
THE CITY OF
DUB E
Masterpiece on the Mississippi
BARRY LIND
CITY ATTORI
To:
DATE:
RE:
MEMORANDUM
Michael C. Van Milligen
City Manager
December 20, 2007
Elm Street Development, LLC
Enclosed is a letter from Attorney Brian Kane as well as two sets of duplicate original
Agreements For Part sale/Part Gift of Real Estate regarding 351 E. 15th Street and 1523
Elm Street executed by Wayne Briggs. Brian is requesting that these agreements be
placed on the City Council agenda.
BAL:tIs
Enclosure
cc: David Harris, Housing & Community Development Director
Brian Kane, Esq. (w/out enc.)
Brian J. Kane
Les V. Reddick*
Brad J. Heying
Todd L. Stevenson*
Kevin T. Deeny**
Bradley B. Kane
Joseph P. Kane
All admitted in Iowa
*Also admitted in Dlinois
**Also admitted in Wisconsin
KANE, NORBY & REDDICK, P.C.
ATTORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3091
Of Counsel:
Gary K. Norby
Phone: (563) 582-7980
Facsimile: (563) 582-5312
E-mail:bkane@kanenorbylaw.com
December 19, 2007
VIA HAND DELIVERY
Mr. Barry A. Lindahl
Corporation Counsel
Harbor View Place, Suite 330
300 Main Street
Dubuque, Iowa 52001-6944
RE: ELM STREET DEVELOPMENT, LLC /CITY OF DUBUQUE
Dear Barry:
Enclosed please find two sets of duplicate original Agreements For Part Sale/Part Gift of
Real.Estate regarding 351E 15~' Street and 1523 Elm Street executed by Wayne A. Briggs. We
understand you will get these on the City Council agenda. We will have the abstracts brought up to
date and delivered to your office.
Please do not hesitate to contact us directly should you have any questions. Thank you.
Best regards,
KANE, NORBY & REDDICK, P.C.
t
By `
Brian J. Kan
BJK:aId
Enclosures
RESOLUTION NO. 34-08
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 351 EAST 15T" STREET AND AT 1523 ELM STREET, IN
THE CITY OF DUBUQUE
WHEREAS, the City of Dubuque intends to acquire certain properties
located in the Washington Neighborhood for the purpose of their rehabilitation
and resale; and
WHEREAS, such acquisitions are intended to result in increased owner-
occupancies, improved properties and increased real estate values.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby approves the acquisition of
the following legally-described properties:
"Wm Reisen Place," and Lot 2 of the South'/ of Lot 147 in East Dubuque
Addition, in the City of Dubuque, Iowa, according to the recorded Plat
thereof, (351 East 15"' Street),
at the cost of Fifty-five thousand dollars ($55 000).
The South'/2 of Lot 148 and the South 1-foot of the North'h of Lot 148
East Dubuque Addition, in the City of Dubuque, Iowa, according to the
recorded Plat thereof, (1523 Elm Street),
at the cost of Fifty thousand dollars ($50 000).
Section 2. That the City of Dubuque be and is hereby authorized to
accept a Quit Claim deed from the owner, conveying the owner's interest to the
City of Dubuque, Iowa for the herein described real estate.
Section 3. That the City Clerk be and she is hereby authorized and
directed to cause said Quit Claim Deed to be recorded in the office of the
Dubuque County Recorder, together with certified copy of the Resolution.
Section 4. That the City Clerk be and she is hereby directed to forward a
copy of this Resolution to the Dubuque County Assessor and the Dubuque
County Auditor.
PASSED, APPROVED AND ADOPTED this 22nd day of January, 2008.
R W. Jones, Mayor Pro-Tem
Attest:
Jeanne Schneider, CMC, i y Clerk
AGREEMENT FOR PART SALE/PART GIFT OF REAL ESTATE
This Agreement for Part Sale/Part Gift of Real Estate ("Agreement") is entered into this 19th
day of December, 2007, by and among ELM STREET DEVELOPMENT, LLC, an Iowa limited
liability company ("Seller or Donor") and THE CITY OF DUBUQUE, IOWA, an Iowa municipal
corporation ("Buyer or Donee").
RECITALS
A. Donor is the owner of certain real estate in the City of Dubuque, Dubuque County,
Iowa, locally known as 351E 15a' Street, Dubuque, IA 52001, and legally described as follows:
"Wm. Reisen Place", and Lot 2 of the South One Half of Lot 147 in East Dubuque
Addition, in the City of Dubuque, Iowa, according to the recorded Plats thereof,
(hereafter the "Real Estate");
B. Donor desires to part selUpart gift the Real Estate to Donee, with the intent to receive
a charitable deduction for income tax purposes for donor pursuant to Section 170 of the Internal
Revenue Code of 1986, as amended;
C. Donee desires to part purchase the Real Estate from Donor and to receive aportion of
the premises via gift from the Donors; and,
D. The parties desire to set out their agreement. in writing.
THEREFORE, in consideration of the mutual terms and covenants contained herein, the
parties agree as follows:
AGREEMENT
1. Purchase Price. The purchase price for the Real Estate shall be $70,000.00, as
appraised by Tom Kane Appraisal, Inc. as of December 13, 2007, and the purchase price shail be
paid as follows:
A. Sale.
(i) $0.00 paid herewith to Kane, Norby & Reddick, P.C. Trust Account,
as an earnest money deposit, -the receipt of which is acknowledged,
which shall be applied to the purchase price at the closing; and
(ii) $55,000.00 cash to be paid at the time of closi:~g by certified check or
checks or other means acceptable to Seller; and
B. Charitable Contribution.
(i) Donor shall convey and transfer, with the intent to make a gift, to
Donee, an interest in the Real Estate equal to the Gift Ratio as
determined under pazagraph 2 below, and Donee shall'acknowledge
receipt of Donor's appraisal showing the value of the Real Estate
used to calculate such gift (the amount of the Purchase Price in excess
of $55,000.00) on the date of closing. Therefore, based upon the
aforesaid appraisal, the charitable contribution shall be $15,000.00.
2. Ratio Deternunation. The ratio determination with respect to this part sale/part gift
transaction shall be a fraction, the numerator of which shall be the difference between the appraised
value (as appraised prior to the closing date), less $55,000.00 and the denominator shall be the
appraised amount. Therefore, since the appraisal shows a value of $70,000.00 as of the date hereof,
then the applicable ratio shall be: $55,000.00 / $70,000.00 (for the ratio with regazd to the purchase
of the Real Estate) and $15,000.00 / $70,000.00 (for the contribution of the gift by Donor to Donee,
herein referred to as the gift ratio).
3. Real Estate Taxes. Seller shall pay all real estate taxes prorated to the date of closing.
Buyer shal] pay all real estate taxes accruing thereafter.
4. ~ecial Assessments. Seller shall pay all special assessments which are alien on the
Real Estate as of the date of acceptance of this offer. All other special assessments shall be paid by
Buyer.
5. Risk of Loss and Insurance. Prior to Seller's delivery of possession of the Real Estate
to Buyer, all risk of loss shall remain with Seller until possession of the Real Estate shall be
delivered to Buyer.
6. Caze and Maintenance. The Real Estate shall be preserved in its present condition
and delivered intact at the time of possession is delivered to Buyer.
-- - -
7. Possession. If Buyer timely performs all obligations, possession of the Real Estate
shall be delivered to Buyer on or before the 31 S` day of December, 2007, The parties agree to
cooperate with regazd to the closing date and any adjustments of rent, insurance and interest shall be
made as of the date of transfer of possession. See Section 18 below.
8. Imnrovements. All improvements, if any, that integrally belong to or are part of the
Real Estate shall be considered a part of the Real Estate and included in this sale including, but not
limited to, all appliances and all window treatments.
9. Use of the Purchase Price. At time of settlement, funds of the purchase price maybe
used to pay taxes and other liens and to acquire ou+_standing interests, if any, of others.
10. Abstract of Title. Buyer, at its expense, shall obtain an abstract of title for the Real
Estate continued through a date within thirty (30) days of the closing date and deliver it to Buyer for
-2-
examination. It shall show merchantable title in Seller in conformity with this agreement, Iowa Law
& Title Standards of the Iowa State Baz Association. The abstract shall become the property of the
Buyer when the purchase price is paid in full at the closing.
11. Deed. At the closing, Seller shall convey the Real Estate to Buyer or Buyer's
assignee by Warranty Deed, free and clear of all liens, restrictions and encumbrances. Any general
warranties of title shall extend only to the time of acceptance of this Offer, with special warranties as
to acts of Seller continuing up to time of delivery of the Deed.
12. Time is of the Essence. Time is of the essence in this contract.
13. Remedies of the Parties.
(a) If Buyer fails to timely perform this contract, Seller may forfeit it as provided by Iowa
Code Chapter 656 (2005) 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 declaze the entire
balance immediately due and payable. Thereafter this contract may be foreclosed iri equity and the
Court may appoint a receiver.
(b) If Seller fails to timely perform this contract, or if any of Buyer's conditions herein
are not satisfied at or prior to closing, Buyer shall not be required to close hereunder. Further, only if
Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to
Buyer (See Section 2(a) above).
(c) Buyer and Seller also aze 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's
fees as permitted by law.
14. Contract Bindine on Successors in Interest. This contract shall apply to and bind the
successors in interest of the parties.
15. 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.
16. Time for Acceptance. If this Offer is not accepted by Seller on or before December
31, 2007, it shall become void and all payments shall be repaid to Buyer.
17. Groundwater Hazazds. Seller represents and warrants to Buyer that, to the best of
Seller's knowledge, Seller has no k. nowledge of the presence in or beneath the Real Estate of solid
waste, radioactive waste, hazazdous waste, hazazdous substances, underground storage tanks, wells
or other conditions which may lead to groundwater contamination, including those substances
defined to be hazardous in 42 U.S. Code Section 9601 , et seq. and Iowa Code Chapter 455B (2005)
-3-
or any other federal or state or local law with respect to groundwater hazards.
18. Closine Date. This transaction shall close as of the date of possession as defined in
Section 7 above, or such other date as is mutually agreed upon by the parties (the "closing date").
19. Miscellaneous. The parties agree that all understanding and agreements, if any,
previously made between the parties hereto are merged in this Agreement, which alone frilly and
completely expressed their understanding with respect to the purchase and sale of the Real Estate.
This agreement may not be changed or terminated orally, but only by an instrument in writing
executed by all of the parties hereto. This agreement shall not be transferred ar assigned without the
prior written consent of the other party hereto, which consent shall not be unreasonably withheld,
This agreement shall be governed by and construed in accordance with the laws of the State ofIowa,
20. Execution by Counterpart and Facsimile. This Agreement may be executed in any
one or more counterparts which, when taken together, shall constitute the entire agreement of the
parties. Further, a party may execute this Agreement by a facsimile signature, which original
signature may be attached to the Agreement at a later time.
21. As Is Condition/No Commission. The parties agree that Buyer is accepting the Real
Estate in "as is" condition and that Buyer is not relying upon any representations or warranties of
Seller not set out in full and writing herein. The parties agree that no real estate agent or broker or
other person is owed a commission or other compensation in connection with this purchase, sale and
gift {except that Seller shall pay any and all commission to Seller's agent, Platinum Realty, LLC, and
hold Buyer harmless therefrom).
22. Environmental Matters. Seller warrants to the best of its knowledge and belief that
there are no abandoned wells, solid waste disposal sites, hazazdous wastes or substances, or
underground storage tanks located on the Real Estate, the Real Estate does not contain levels of
--radon gasp asbestos or urea-formaklehydofoam-insulation_which require retnediation under current
govenunental standazds, and Seller has done nothing to contaminate the Real Estate with hazardous
wastes or substances. Seller warrants that the Real Estate is not subject to any local, state, or federal
judicial or administrative action, investigation or order, as the case may be, regazding wells, solid
waste disposal sites, hazazdous wastes or substances, or underground storage tanks. Seller shall also
provide Buyer with a properly executed Groundwater Hazazd Statement showing no wells, solid
waste disposal sites, hazazdous waste and underground storage tanks on the Real Estate unless
disclosed here: None
23. Condition. Buyer's performance hereunder is subject to approval ofthe City Council
of the City of Dubuque, Iowa prior to the Closing.
THE CITY OF DUBUQUE, IOWA, ELM S i xEET DEVELOPMENT, LLC,
BUYE SELLER/DONOR
c
BY Ric Jones
its authorized representative Its a i rize represent ti
G:IWPDOCSVingielDOCS DewlopmeID LLC (City of Dubuque) Ageemeut for Pert Sale-Gift of R te.doc
-4-
AGREEMENT FOR PART SALE/PART GIFT OF REAL ESTATE
This Agreement for Part Sale/Part Gift of Real Estate ("Agreement") is entered into this 19~'
day of December, 2007, by and among ELM STREET DEVELOPMENT, LLC, an Iowa limited
liability company ("Seller or Donor") and THE CITY OF DUBUQUE, IOWA, an Iowa municipal
corporation ("Buyer or Donee").
RECITALS
A. Donor is the owner of certain real estate in the City of Dubuque, Dubuque County,
Iowa, locally known as 1523 Elm Street, Dubuque, IA 52001, and legally described as follows:
The South '/, of Lot 148 and the South 1 foot of the North '/z of Lot 148 in East
Dubuque, an Addition to the City of Dubuque, Iowa, according to the recorded plat
thereof, (hereafter the "Real Estate");
B. Donor desires to part sell/part gift the Real Estate to Donee, with the intent to receive
a charitable deduction for income tax purposes for donor pursuant to Section 170 of the Internal
Revenue Code of 1986, as amended;
C. Donee desires to part purchase the Real Estate from Donor and to receive a portion of
the premises via gift from the Donors; and,
D. The parties desire to set out their agreement in writing.
THEREFORE, in consideration of the mutual terms and covenants contained herein, the
parties agree as follows:
AGREE*,rcrrr _ __
1. Purchase Price. The purchase price for the Real Estate shall be $55,000.00, as
appraised by Tom Kane Appraisal, Inc. as of December 13, 2007, and the purchase price shall be
paid as follows:
A. Sale.
(i) $0.00 paid herewith to Kane, Norby & Reddick, P.C. Trust Account,
as an earnest money deposit, the receipt of which is acknowledged,
which shall be applied to the purchase price at the closing; and
(ii) $SO,000A0 cash to be paid at the time of closing by certified check or
checks or other means acceptable to Seller; and
B. Charitable Contribution.
(i) 'Donor shall convey and transfer, with the intent to make a gift, to
Donee, an interest in the Real Estate equal to the Gift Ratio as
determined under pazagraph 2 below, and Donee shall acknowledge
receipt of Donor's appraisal showing the value of the Real Estate
used to calculate such gift (the amount of the Purchase Price in excess
of $50,000.00) on the date of closing. Therefore, based upon the
aforesaid appraisal, the charitable contribution shail be $5,000.00.
2. Ratio Determination. The ratio determination with respect to this part sale/part gift
transaction shall be a fraction, the numerator of which shall be the difference between the appraised
value (as appraised prior to the- closing date), less $50,000.00 and the denominator shall be the
appraised amount. Therefore, since the appraisal shows a value of $55,000.00 as of the date hereof,
then the applicable ratio shall be: $50,000.00 / $55,000.00 (for the ratio with regazd to the purchase
of the Real Estate) and $5,000.00 / $55,000.00 (for the contribution of the gift by Donor to Donee,
herein referred to as the gift ratio).
3. Real Estate Taxes. Seller shall pay all real estate taxes prorated to the date of closing.
Buyer shall pay all real estate taxes accruing thereafter.
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.
5. Risk of Loss and Insurance. Prior to Seller's delivery of possession of the Real Estate
to Buyer, all risk of loss shall remain with Seller until possession of the Real Estate shall be
delivered to Buyer.
6. Caze and Maintenance. The Real Estate shall be preserved in its present condition
and delivered intact at the time~f~assession is-delivere~Buygr. --__ ~ --_
7. Possession. If Buyer timely performs all obligations, possession of the Real Estate
shall be delivered to Buyer on or before the 3151 day of December, 2007. The parties agree to
cooperate with regazd to the closing date and any adjustments of rent, insurance and interest shall be
made as of the date of transfer of possession. See Section 18 below.
8. Improvements. All improvements, if any, that integrally belong to or are part of the
Real Estate shall be considered a part of the Real Estate and included in this sale including, but not
limited to, all appliances and all window treatments.
9. TJse of the Purchase Price. At time of settlement, funds ofthe purchase price maybe
used to pay taxes and other liens and to acquire outstanding interests, if any, of others.
10. Abstract of Title. Buyer, at its expense, shall obtain an abstract of title for the Real
-2-
Estate continued through a date within thirty (30) days of the closing date and deliver it to Buyer for
examination. It shall show merchantable title in Seller in conformity with~is agreement, Iowa Law
& Title Standazds of the Iowa State Baz Association. The abstract shall b come the property of the
Buyer when the purchase price is paid in full at the closing.
11. Deed. At the closing, Seller shall convey the Real Es to to Buyer or Buyer's
assignee by Warranty Deed, free and cleaz of all Liens, restrictions and en brances. Any general
warranties of title shall extend only to the time of acceptance of this Offer, 'th special warranties as
to acts of Seller continuing up to time of delivery of the Deed. i
12. Time is of the Essence. Time is of the essence in this
13. Remedies of the Parties.
(a) If Buyer fails to timely perform this contract, Seller may fo eit it as provided by Iowa
Code Chapter 656 (2005) and all payments made shall be forfeited or, at S per's option, upon thirty
(30) days written notice of intention to accelerate the payment of the entir balance because of such
failure (during which thirty (30) days such failure is not corrected) Sel er may declare the entire
balance immediately due and payable. Thereafter this contract may be foreclosed in equity and the
Court may appoint a receiver.
(b) If Seller fails to timely perform this contract, or if any of Buyer's conditions herein
are not satisfied at or prior to closing, Buyer shall not be required to close hereunder. Further, only if
Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to
Buyer (See Section 2(a) above).
(c) Buyer and Seller also aze 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's
--feea as permitted bylaw. - _ _ ---- ---- _ -_
14. Contract Binding on Successors in Interest. This contract shall apply to and bind the
successors in interest of the parties.
15. 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.
16. Time for Acceptance. If this Offer is not accepted by Seller on or before December
31, 2007, it shall become void and all payments shall be repaid to Buyer.
17. Groundwater Hazards. Seller represents and warrants to Buyer that, to the best of
Seller's knowledge, Seller has no knowledge of the presence in or beneath the Real Estate of solid
waste, radioactive waste, hazazdous waste, hazazdous substances, underground storage tanks, wells
or other conditions which may Lead to groundwater contamination, including those substances
-3-
~,
defined to be hazardous in 42 U.S. Code Section 9601 , et seq. and Iowa Code Chapter 455B {2005)
or any other federal or state or local law with respect to groundwater hazazds.
18. Closin¢ Date. This transaction shall close as of the date of possession as defined in
Section 7 above, or such other date as is mutually agreed upon by the parties (the "closing date").
19. Miscellaneous. The parties agree that all understanding and agreements, if any,
previously made between the parties hereto aze merged in this Agreement, which alone fiilly and
completely expressed their understanding with respect to the purchase and sale of the Real Estate.
This agreement may not be changed or terminated orally, but only by an instrument in writing
executed by all of the parties hereto. This agreement shall not be transferred or assigned without the
prior written consent of the other party hereto, which consent shall not be unreasonably withheld.
This agreement shall be governed by and construed in accordance with the laws of the State of Iowa
20. Execution by Counterpart and Facsimile. This Agreement may be executed in any
one or more counterparts which, when taken together, shall constitute the entire agreement of the
parties. Further, a party may execute this Agreement by a facsimile signature, which original
signature may be attached to the Agreement at a later time.
21. As Is Condition/No Commission. The parties agree that Buyer is accepting the Reat
Estate in "as is" condition and that Buyer is not relying upon any representations or warranties of
Seller not set out in full and writing herein. The parties agree that no real estate agent or broker or
other person is owed a commission or other compensation in connection with this purchase, sale and
gift (except that Seller shall pay any and all commission to Seller's agent, Platinum Realty, LLC, and
hold Buyer harmless therefrom).
22, Environmental Matters. Seller warrants to the best of its knowledge and belief that
there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, or
underground storage tanks located on the-Real Estate, the-Real Estate does-not contain levels of --
radon gas, asbestos orurea-formaldehyde foam insulation which require remediatiott under current
governmental standards, and Seller has done nothing to contaminate the Real Estate with hazardous
wastes or substances. Seller warrants that the Real Estate is not subject to any local, state, or federal
judicial or administrative action, investigation or order, as the case may be, regazding wells, solid
waste disposal sites, hazazdous wastes or substances, or underground storage tanks. Seller shall also
provide Buyer with a properly executed Groundwater Hazazd Statement showing no wells, solid
waste disposal sites, hazardous waste and underground storage tanks on the Real Estate unless
disclosed here: None
23. Condition. Buyer's performance hereunder is subject to approval of the City Council
of the City of Dubuque, Iowa prior to ±he Closing.
THE CITY OF DUBUQUE, IOWA,
BUYER/D
By Ric Jones
Its authorize representative
-4-
ELM STREET DEVELOPMENT, LLC,
Client Elm Street Develo ment LLC File No. 07-782
Pra ert Address 351E 15th St
Ci Dubu ue Count Dubu ue State IA Zi Code 52001-4938
Borrower Elm Street Develo ment LLC
Invoice .....
Cover Page
Letter of Transmittal ...........................................
Summary of Salient Features ...............................
Desktop Quantitative 2055 ..................................
Subject Photos ....................................................
Comparable Photos 1-3 .......................................
Building Sketch (Page -1) ...................................
Plat Map ..............................................................
Neighborhood Map ..............................................
Location Map ......................................................
Flood Map ...........................................................
TABLE OF CONTENTS
...................... ............................... ..................................... .................. .............................. 1
...................... ............................... ...................................... .................. ............................. 2
...................... ............................... ...................................... ................. .............................. 3
....................... .............................. ...................................... .................. .............................. 4
...................... ............................... ...................................... .................. ............................. 5
...................... .............................. ...................................... .................. .............................. 8
...................... ............................... ...................................... .................. ............................. 9
...................... ............................... ...................................... ................. .............................. 10
Form TOCNP - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE
File No. 07-782 Paae #3
Kane Howe Appraisal Services
14858 West Ridge Lane, suite #8
Dubuque,lowa 52003
Elm Street Development LLC
Re: Property: 351E 15th St
Dubuque,lA 52001-4938
Borrower: Elm Street Development LLC
File No.: 07-782
In accordance with your request, we have appraised the above referenced property. The report of that
appraisal is attached.
The purpose of this appraisal is to estimate the market value of the property described in this appraisal
report, as improved, in unencumbered fee simple title of ownership.
This report is based on a physical analysis of the site and improvements, a locational analysis of the
neighborhood and city, and an economic analysis of the market for properties such as the subject. The
appraisal was developed and the report was prepared in accordance with the Uniform Standards of
Professional Appraisal Practice.
The value conclusions reported are as of the effective date stated in the body of the report and contingent
upon the certification and limiting conditions attached.
It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of
additional service to you.
Sincerely,
'~/~ \ ' / Y~-'Z
osep R. Sm I
(File No. 07-782 Paoe #4
SUMMARY OF SALIENT FEATURES
Subject Address 351E 15th St
Legal Description Lot 2 f S 1/2 147 East Dubuque Addition & "All" Wm. Reisen Place
City Dubuque
County Dubuque
State IA
Zip Code 52001-4938
Census Tract 0001.00
Map Reference 20220
Sale Price $ n/a
Date of Sale n/a
Client Elm Street Development LLC
Borrower Elm Street Development LLC
Size (Square Feet) 1,456
Price per Square Foot $
Location urban/avg
Age 1890
Condition good
Total Rooms 6
Bedrooms 2
Baths 1
Appraiser Joseph R. Small
Date of Appraised Value December 13, 2007
Final Estimate of Value $ 70,000
Form SSD - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE
~~ FannieMae Kane Howe Appraisal Services
Desktop Underwriter Quantitative Analysis Appraisal Report
(File No. 07-7821 Page #51
2055
File No. 07-782
THIS SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE LENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY.
Pro ert Address 351E 15th St Cit Dubu ue State IA Zi Code 52001-4938
Le al Descri tion Lot 2 f S 1/2 147 East Dubu ue Addition & "All" Wm. Reisen Place Coun Dubu ue
Assessor's Parcel No. 10-24-282-022 Tax Year 2006 R.E. Taxes 568.86 S ecial Assessments none
. Borrower Elm Street Develo ment LLC Current Owner Elm Street Develo ment LLC Occu ant Owner Tenant Vacant
Nei hborhood or Pro'ect Name 15th StreeUElm Street Pro'ect T e PUD Condominium HOA Mo.
Sales Price n/a Date of Sale n/a Descri tion amount of loan char es concessions to be aid b seller none
Pro ert ri hts a raised Fee Sim le Leasehold Ma Reference 20220 Census Tract 0001.00
Note: Race and the racial co osifon of t e nei h or oo d are not a sisal f ctors.
Location ®Urban ^ Suburban ^ Rural
Built up ®Over 75% ^ 25-75% ^ Under 25~°
Growth rate Ra id Stabie Slow Property values ®Increasing ^ Stable ^ Declining
Demand/supply ^ Shortage ®In balance ^ Over supply
Marketin time Under 3 mos. 3-6 mos. Over 6 mos. Single family housing
$(000) (yrs)
45 Low 60 Condominium housing
$(000)if applic.) (~ )
Low
Neighborhood boundaries Would be considered 22nd Street to the north, Pine Street to the east, 10th Street to
the south Central Avenue to the west. Well established sin le famil residents/ nei hborhood with some 90 High 120 High
' Predominant ,
Predominant
___
_ _
du lex, commercial and industrial. Pro erties in the nei hborhood are t icall avers a maintained. 65 100
Dimensions see plat Site area 1,148 sf Shape irregular
Specific zoning classification and description R-3 Multi-Family Residential (No detrimental influences were observed)
Zoning compliance ®Legal ^ Legal nonconforming (Grandfathered use) ^ Illegal, attach description ^ No zoning
Highest and best use of subject property as improved (or as proposed per plans and specifications): ®Present use ^ Other use, attach description.
Utilities Public Other Public Other
Electricity ® Water ®
Gas Sanitar sewer Off-site Improvements Type Public Private
Street paved asphalt ® ^
Alle side
Are there an a arent adverse site conditions easements encroachments s ecial assessments slide areas etc. ? Yes No If Yes attach descri tion.
Source(s) used for physical characteristics of property: ®Interior and exterior inspection ^ Exterior inspection from street ^ Previous appraisal files
MLS Assessment and tax records Prior ins ection Pro ert owner Other Describe
No. of Stories 2 T e Det. Att. det Exterior Walls wood Roof Surface as halt shin lelav Manufactured Housin Yes No
Does the ro ert enerall conform to the nei hborhood in terms of s le condition and construction materials? Yes No If No attach descri tion.
Are there any apparent physical deficiencies or conditions that would affect the soundness or structural integrity of the improvements or the livability of the property?
Yes No If Yes attach descri tion.
Are there any apparent adverse environmental conditions (hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of
the subject property? ^ Yes ®No If Yes, attach description.
I researched the subject market area for comparable listings and sales that are the most similar and proximate to the subject property.
My research revealed a total of 0 sales ranging in sales price from $ to $
My research revealed a total of 3 listings ranging in list price from $ 68,500 to $ 74,900
The anal sis of the cam arable sales below reflects market reaction to si nificant variations between the sales and the sub'ect roe
FEATURE SUBJECT SALE 1 SALE 2 SALE 3
351E 15th St
Address Dubu ue 2721 Elm Street
Dubu ue IA 2660 White Street
Dubu ue IA 2742 Jackson Street
Dubu ue IA
Proximit to Sub'ect 1.12 miles NW 1.03 miles NW 1.13 miles NW
I l 7F,On0
~~ 0.000
1 7
~ ~ 68,500
-
Pace Gross Livin Area S
w _
~
$ _ 59.38 ~' .
`N I
$
57.95 $ -
S~
55.83
l
Data & Verification Sources _ _
DMLS/Ins ect _ _ _ _
DMLS/Ins ect ___
DMLS/Ins ect
VALUE ADJUSTMENTS ~ I,I=' I ~I DESCRIPTION + - $ Ad'ust. DESCRIPTION + - $ Ad'ust. DESCRIPTION + - $ Ad~ust.
Sales or Financing
Concessions Conventional
Financin Conventional
Financin Conventional
Financin
Date of Sale ime 8/30107 8/17/07 8131/07
Location urban/av urban/av urban/av urban/av ;
Site 28' x 41' av 25' X 100' av 60' x 85' av 25' x 100' av
View res/cam/av res/cam/av res/cam/av res/cam/av
Desi n St le 2 sto av 2 sto av 2 sto av 2 sto av
Actual A e rs. 1890 1916 1920 1900
Condition ood ood
' average +3,000 ood
Above Grade
Total ~ Bdrms~ Baths -
Total ~ Bdrms~ Baths ~ _ ' --
Total ~ Bdrms~ Baths ~
Total ; Bdrms: Baths ,
-
• Roam Count 6 2 1 5 2 1.5 -2,500 6 3 1 6 3~ 1
Gross Livin Area 1 456 S . Ft. 1 280 S . Ft. +1 408 1 208 S . Ft. +1 984 1 227 S . Ft. +1 832
- Basement & Finished
Rooms Below Grade 100% 0% fin
none 100% 0% fin
none 100% 0% fin
none 100% 0% fin '
none
Gars a Car art 1 car art 1 car det -1 000 2 car det -3 500 1 car det -1 000
arch/ atio/deck atio arch arch/ atio -1 000 2 arch -1 000
NetAd~. total n + IRI -
; $ -2,092 +
I-1 - ; 484
~ ^±
~ - ; -168
Adjusted Sales Price
of Comparables _
_ _ __ _ _
Net 2.8 `,v j
Gros 6 5 % 73 908 __
_
fJet D 7 °~~ ~
.Gross 13 5
~~,
~ $ 70,484 __
Net 0.2 ~ j
Gross 5.6 ~' 68 332
Date of Prior Sale 2/20/07 N/A _
_
N/A N/A
Price of Prior Sale $65 000
Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: Sale of Sub'ect a ears to be
a reasonable market oriented transaction in ast three ears. Function of a raisal is for estimatin Market Value .
Summary of sales comparison and value conclusion: Sub'ect cam ared to 3 similar 2-level st le homes. A $8.00/SF size ad'ustment made based
on market data. A $2 500 half bath $1 500 car art $2 500 er ara a and a $1 000 atio/ arch ad'ustment were made based on
market data. Estimated sub'ect Market Value herein of $70 000 calculates to $48.08/SF which is lower than the actual sale rice
er SF ran a of cam arable sales but deemed a ro riate based on sub'ect location ualit and condition. All sales considered and
iven wei ht in the final anal sis.
This appraisal is made ~ "as-is", ^ subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, or
^ subject to the following repairs, alterations or conditions
BASED ON AN ^ EXTERIOR INSPECTION FROM THE STREET OR AN ®INTERIOR AND EXTERIOR INSPECTION , I ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL
PROPERTY THAT IS THE SUBJECT OF THIS REPORT TO BE $ 70, 000 , AS OF December 13, 2007
PAGE 1 OF 3 Fannie Mae Farm 2055 9-96
Form 205 - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE