Sale of Property - 767 University Avenue_Habitat for Humanity 1 Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Sale of Property - 767 University Avenue
SUMMARY: City Manager recommending setting a public hearing for November 2,
2015 on the proposed sale of the City lot located at 767 University Avenue
to Habitat for Humanity.
RESOLUTION Intent to dispose of an interest in City of Dubuque real
estate, setting a time and place for hearing and providing for the
publication thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public
Hearing for 11/2/15
ATTACHMENTS:
Description Type
❑ Sale of 767 University-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Resolution Resolutions
❑ Notice of Public Hearing Supporting Documentation
❑ Purchase Agreement 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: Sale of 767 University Avenue Lot to Habitat for Humanity
DATE: October 13, 2015
Housing and Community Development Department Director Alvin Nash recommends
the City Council set a public hearing for November 2 on the proposed sale of the City lot
located at 767 University Avenue to Habitat for Humanity for the amount of$1.00.
Habitat for Humanity will build a new one-story ranch home on this property during the
2016 Blitz Build program.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing and community Development Department Director
THE CITY OF Dubuque
AII-Ame1 rica City
DUBgkE r
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing and Community Development Department
SUBJECT: Sale of 767 University Avenue Lots to Habitat for Humanity
DATE: October 13, 2015
Introduction:
The property and structure located at 767 University Avenue was gifted to the City of
Dubuque by Wells Fargo Bank in September of 2014. Wells Fargo Bank also provided
the City with $20,000 to be used towards the cost of deconstructing or renovating the
vacant duplex on site. Wells Fargo Bank originally took possession by means of
foreclosure and the property was vacant when the Bank contacted the City. Due to the
overall poor condition of the structure and significant structural damage caused by
termites and water infiltration issues the City elected to move forward with
deconstruction.
Background:
Upon taking possession of the property the City also acquired the adjacent lot from the
original owner of the property located at 767 University Avenue. This lot was purchased
in the amount of $1,500.00 in February of 2015. This lot was purchased to be able to
create access to the lot provided to us by Wells Fargo by means of the existing alley
way and driveway. The City then proceeded to seek bids for the deconstruction of the
existing structure located at 767 University in March of 2015. Upon award of the bid the
deconstruction work began and was completed in May of 2015. The City also had to
replace the existing stop box on the water main line which services this address. The
City spent a total of $25,188.50 on acquiring the extra lot, asbestos inspection and
removal, deconstruction of the duplex, and the stop box repair to the water main. Wells
Fargo provided the City with $20,000 and the City has put forth a total of $5,188.50 into
this project.
Discussion:
City staff has met with Habitat for Humanity Board Members and the Director to
organize a plan to develop a single family owner occupied dwelling at 767 University
Avenue. Habitat for Humanity would like to purchase the lot located at 767 University
Avenue in the amount of$1. Habitat for Humanity has agreed to incorporate this project
into their 2016 Blitz Build program where they partner with the Dubuque Home Builders
Association in the construction of two homes. Habitat will build a new 1-story ranch
home with no basement that is 28' wide x 40' deep with an attached front porch that is
5' deep x 19' wide. This will be a 3-bedroom, 1 full bath home with a detached parking
pad. Habitat has agreed to meet all requirements set forth by our Planning Department
in regards to installing a hard surface driveway beginning at the property line where the
City's ownership ends and continue this driveway all the way up to the home and into
the parking pad.
City staff will meet two important objectives by selling this property to Habitat for
Humanity. When we accepted the property and money from Wells Fargo bank, we
agreed to make this property marketable too low-moderate income level families,
regardless if the existing structure could be renovated, or is we were to build a new
structure. By selling this property to Habitat, we meet that objective of our agreement
with Wells Fargo Bank. Secondly, we meet one our most important goals and priorities
in developing and creating single family homeownership opportunities for low-moderate
income families. From a property tax perspective the completed new home Habitat
intends to build on this site will be very comparable in assessment value to previous
homes they have built identical to this design in other locations within the City. The
expected net assessed value of the new home Habitat intends to build should be
around $115,000 to $130,000 range. Versus the previous structure located at 767
University held a net assessed value of$70,300 in 2014.
The Abstract for 767 University Avenue has already been updated with the twenty-one
year restrictive covenant being attached to the title. The Real Estate shall be known and
described as residential Real Estate, and shall not be improved, used or occupied for
other than one (1) private single-family residential use. The Real Estate and any part
thereof must be owner occupied. Rental of the Real Estate is not allowed. No portion
of the Real Estate can be rented as an apartment.
Action Step:
The action requested of the City Council is to approve the attached resolution, declaring
the City's intent to dispose of the property and set the date for the public hearing to
receive comments on the proposed sale.
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RESOLUTION NO. 368-15
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE,
SETTING A TIME AND PLACE FOR HEARING AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque, Iowa (City) is the owner of 767 University
Avenue (the Property) legally described as:
Tract I: Lot 1 of Lot 2 of Lot 3 of the Subdivision of Out Lot 738 in the
City of Dubuque, Iowa, and a right of way over Lot 3 of Lot 3, and
over the East 20 feet of Lot 8, of the Subdivision of Out Lot 738, in
the City of Dubuque, Iowa according to the recorded plat thereof
Tract II: Lot 3 of Lot 3 of the Subdivision of Out Lot 738 in the City of
Dubuque, Iowa, according to the recorded plat thereof the City of
Dubuque, Iowa
WHEREAS, City was gifted this property/lot from Wells Fargo Bank in September
2014, along with $20,000 to be used toward the cost of deconstruction or renovation of a
vacant duplex on site. Due to the overall poor condition of the structure and significant
damage cause by termites and water infiltration issue it was determined to move forward
with deconstruction; and
WHEREAS, City has met with Habitat for Humanity who agreed to purchase the lots
for $1 and construct a single family owner occupied dwelling on the site.
WHEREAS, conveying the Tots to Habitat for Humanity will meet one our most
important goals and priorities in developing and creating single family homeownership
opportunities for low -moderate income families; and
WHEREAS, City desires to hold the required public hearing and conveyance of the
Properties to Habitat to Humanity.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque, Iowa intends to dispose of its interest in the
following legally described property:
Tract I: Lot 1 of Lot 2 of Lot 3 of the Subdivision of Out Lot 738 in the
City of Dubuque, Iowa, and a right of way over Lot 3 of Lot 3, and
over the East 20 feet of Lot 8, of the Subdivision of Out Lot 738, in
the City of Dubuque, Iowa according to the recorded plat thereof
Tract II: Lot 3 of Lot 3 of the Subdivision of Out Lot 738 in the City of
Dubuque, Iowa, according to the recorded plat thereof the City of
Dubuque, Iowa
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in
the Property to Habitat for Humanity for the sum of $1.
Section 3. That the City Clerk hereby authorized and directed to cause this
Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a
public hearing on the City's intent to dispose of the Property to be held on the 2nd day of
November, 2015. At 6:30 o'clock p.m. at the Historic Federal building, 350 West 6th
Street, Dubuque, Iowa.
Passed, approved and adopted this 19th day of October, 2015.
Roy D. Buol,/layor
ATTEST:
Kevin S. Firhstahl, City CI k
CITY OF DUBUQUE, 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 2nd day of November, 2015, at 6:30 p.m. in
the Historic Federal Building, 350 West Sixth Street, second floor, Dubuque,
Iowa, at which meeting the City Council proposes to dispose of an interest in the
following described real property by sale to Habitat for Humanity, an Iowa non-
profit corporation:
Tract I: Lot 1 of Lot 2 of Lot 3 of the Subdivision of Out Lot 738 in the City
of Dubuque, Iowa, and a right of way over Lot 3 of Lot 3, and over the
East 20 feet of Lot 8, of the Subdivision of Out Lot 738, in the City of
Dubuque, Iowa according to the recorded plat thereof
Tract II: Lot 3 of Lot 3 of the Subdivision of Out Lot 738 in the City of
Dubuque, Iowa, according to the recorded plat thereof the City of
Dubuque, Iowa
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. Written comments
regarding the above public hearing may be submitted to the City Clerk's Office,
City Hall, 50 W. 13th Street, on or before said time of public hearing.
Copies of supporting documents for the public hearings are on file in the City
Clerk's Office, and may be viewed during normal working hours.
Any visual or hearing impaired persons needing special assistance or persons
with special accessibility needs should contact the City Clerk's Office at (563)
589-4100 or TTY (563) 556-9948 at least 48 hours prior to the meeting.
Dated this (Day)th day of (Month), (Year). (date of publication)
Kevin S. Firnstahl, CMC
City Clerk
1 t XX/XX (clerk use)
The Resolution on Intent to Dispose is inserted here for the newspaper.
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 767 University Avenue,
Dubuque, IA 52001 and legally described as:
Tract I: Lot 1 of Lot 2 of Lot 3 of the Subdivision of Out Lot 738 in the City of
Dubuque, Iowa, and a right of way over Lot 3 of Lot 3, and over the East 20 feet
of Lot 8, of the Subdivision of Out Lot 738, in the City of Dubuque, Iowa
according to the recorded plat thereof
Tract II: Lot 3 of Lot 3 of the Subdivision of Out Lot 738 in the City of Dubuque,
Iowa, according to the recorded plat thereof the City of Dubuque, Iowa
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 one dollar ($1 .00).
SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes
payable for fiscal year 2014-2015 and prior years. Seller shall also pay real estate
taxes for fiscal year 2015-2016 prorated through 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 6. 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
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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 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 November 15, 2015, 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
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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 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.
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18.2 If Seller fails to timely perform this contract, Buyer has the right to have all
payments made returned to it.
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.
Habitat for Humanity
900 Jackson Street, Suite LL5-2E
Dubuque, IA 52001
City of Dubuque
Attn: Alvin Nash
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 October 15, 2015, 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 Seller will provide Buyer with a signed Acknowledgment of Voluntary Negotiation
and Purchase of Property at the time of closing.
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25.2 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.
25.3 The Real Estate will have a restrictive covenant filed indicating the property must
remain a single family owner-occupied home for twenty-one (21) years.
25.4 Rehabilitation of the Real Estate must be in accordance with State Historic Tax
Credit Program guidelines and specifications.
SELLER BUYER
CITY OF DUBUQUE, IOWA HABITAT FOR HUMANITY
By: By:
Roy D. Buol, Mayor Printed Name:
Dated: Dated:
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