Sale of Property - 1849 Jackson Street_Community Housing Initiatives CHI Copyright 2014
City of Dubuque Items to be set for Public Hearing # 3.
ITEM TITLE: Sale of Property - 1849 Jackson Street
SUMMARY: City Manager recommending setting a public hearing for November 2,
2015 on the proposed sale of a lot located at 1849 Jackson Street to
Community Housing Initiatives.
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 of notice thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public
Hearing for 11/2/15
ATTACHMENTS:
Description Type
❑ Sale of Lot at 1849 Jackson-MVM Memo City Manager Memo
❑ Memo Staff Memo
❑ Resolution Resolutions
❑ Notice of Public Hearing Supporting Documentation
❑ Offer to Buy 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 Lot Located at 1849 Jackson Street
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 a lot
located at 1849 Jackson Street to Community Housing Initiatives for$1.00. Community
Housing Initiatives will construct a new single family home at 1849 Jackson Street. The
construction of this new single family home will be done as part of the City's original
contract agreement with Community Housing Initiatives to complete 20 single family
homes over the course of a three year period. As part of the original Community
Housing Initiatives agreement, the City agreed to pay $25,000 per project on
completion. For this project, the City will deduct $8,750 (the current assessed value of
the lot) from the contribution amount of $25,000.
1 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
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 Lot Located at 1849 Jackson Street
DATE: October 5, 2015
Introduction:
The purpose of this memorandum is to convey staff's recommendation to dispose of the
lot located at 1849 Jackson Street.
Background:
On August 1, 2014 the home located at 1849 Jackson Street sustained considerable
damaged due to a fire, the home was left uninhabitable and abandon by the owner. Due
to the severity of the damage and concern for public safety the Building Services
Department requested Bids for demolition of the abandon structure. The Building
Services Department hired Sharkey Demolition to remove the asbestos material and
demolish the structure in February of 2015. The total cost for the demolition and
asbestos removal services was $37,450. The demolition cost was then assessed to the
property owner of 1849 Jackson Street upon completion.
The City began to look for an alternative solution to the vacant/abandon lot when it
became apparent that the owner had no intentions of taking maintenance responsibility,
nor fiscal responsibility for the assessment placed on the property by the City. The City
also had to take on maintenance responsibility of the abandon lot in regards to snow,
grass, and any garbage or nuisance issues. The City began discussions with
Community Housing Initiatives (CHI) and their possible interest in the lot for a potential
site for a newly constructed single family home. The lot was ready to build on due to
the demolition work being completed already. The City then proceeded to request for
Petition for Title of this property through the Courts due to it being vacant and abandon.
The Courts granted the City of Dubuque title to 1849 Jackson Street.
Discussion:
The City would like sell the lot located at 1849 Jackson Street to CHI for $1. CHI will
proceed to construct a new single family home at 1849 Jackson Street. (Drawings are
attached) The construction of this new single family home will be done as part of our
original contract agreement with CHI to complete 20 single family homes over the
course of a three year period. As part of the original CHI agreement the City agreed to
put forth $25,000 per project as they were completed. For this particular project of the
new single family home to be constructed at 1849 Jackson Street the City will deduct
$8,750 from our normal contribution amount of$25,000. The City will contribute $16,250
towards the construction of the new single family home. The deduction of$8,750 is the
current assessed value of the lot located at 1849 Jackson Street.
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.
KLN/AN
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RESOLUTION NO. 369-15
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 1849 Jackson (the
Property) legally described as:
North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according
to the United States Commissioners Map thereof.
WHEREAS, City acquired the Property for the purpose of its restoration and re -sale
for owner -occupied housing in the Washington Neighborhood; and
WHEREAS, City and Community Housing Initiatives (CHI) entered into an
Agreement pursuant to which City will convey the Property to CHI and CHI will rehabilitate
the Property consistent with the Washington Neighborhood Revitalization Strategy as
approved by the City Council; and
WHEREAS, conveying the Property to CHI is consistent with both the Washington
Neighborhood Revitalization Strategy and the City's intent for this specific property; and
WHEREAS, City desires to hold the required public hearing and conveyance of the
Property to CHI.
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:
North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa,
according to the United States Commissioners Map thereof.
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in
the Property to CHI for the sum of one dollar ($1.00).
Section 3. That the City Clerk is 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.
C LI
Roy D. Buol,'/layor
ATTEST:
Kevin F rnstahl, Cit _dirk
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 Community Housing Initiative (CHI), an Iowa non-profit corporation:
North Y2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, 1849 Jackson
Street
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. 131h 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 1849 Jackson Street,
Dubuque, IA 52001 and legally described as:
North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according
to the United States Commissioners Map thereof.
legal description to be confirmed per continued abstract per Section 10, together with
any easements and appurtenant servient estates, but subject to the following:
a. any easements of record for public utilities or roads,
b. any zoning restrictions and other ordinances, and
c. any covenants of record.
SECTION 2. PURCHASE PRICE. The purchase price shall be 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 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or
damage to the Real Estate prior to closing or possession, whichever first occurs. Seller
agrees to maintain existing insurance and Buyer may purchase additional insurance. In
the event of substantial damage or destruction prior to closing, this agreement shall be
null and void; provided, however, Buyer shall have the option to complete the closing
and receive insurance proceeds regardless of the extent of damages. The property
shall be deemed substantially damaged or destroyed if it cannot be restored to its
present condition on or before the closing date.
SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its
present condition and delivered intact at the time of possession is delivered to Buyer,
provided, however, if there is loss or destruction of all or any part of the Real Estate
from causes covered by the insurance maintained by Seller, Buyer agrees to accept
such damaged or destroyed Real Estate together with such insurance proceeds in lieu
of the Real Estate in its present condition and Seller shall not be required to repair or
replace same.
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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
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.
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SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract
shall apply to and bind the successors in interest of the parties. This agreement shall
survive the closing.
SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND
REVIEW. Real Estate deeded herein is taken in "as is" condition with no guarantees or
warranties express or implied.
SECTION 14. ENCUMBRANCES. Seller warrants that the Real Estate will as of the
date of closing be free and clear of all liens, security interests, and encumbrances.
SECTION 15. TENANTS. The Real Estate is free and clear of any occupants, and no
party has a lease to or other occupancy or contract right in the Real Estate which shall
in anyway be binding upon the Real Estate. Seller shall hold harmless and indemnify
the Buyer for and against any claims, which may arise or be based upon any alleged
leasehold interest, tenancy, or other right of occupancy or use for any portion for the
Real Estate. This covenant shall survive the closing.
SECTION 16. NO REAL ESTATE AGENT OR BROKER. Neither party has used the
service of a real estate agent or broker in connection with this transaction.
SECTION 17. CERTIFICATION. Buyer and Seller each certify that they are not acting,
directly or indirectly, for or on behalf of any person, group, entity or nation named by any
Executive Order or the United States Treasury Department as a terrorist, "Specially
Designated National and Blocked Person" or any other banned or blocked person,
entity, nation or transaction pursuant to any law, order, rule or regulation that is
enforced or administered by the Office of Foreign Assets Control; and are not engaged
in this transaction, directly or indirectly on behalf of, any such person, group, entity or
nation. Each party hereby agrees to defend, indemnify and hold harmless the other
party from and against any and all claims, damages, losses, risks, liabilities and
expenses (including attorney's fees and costs) arising from or related to breach of the
foregoing certification.
SECTION 18. REMEDIES OF THE PARTIES.
18.1 If Buyer fails to timely perform this contract, Seller may forfeit it as provided in the
Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty (30)
days written notice of intention to accelerate the payment of the entire balance because of
such failure (during which thirty (30) days such failure is not corrected) Seller may declare
the entire balance immediately due and payable. Thereafter this contract may be
foreclosed in equity and the Court may appoint a receiver.
18.2 If Seller fails to timely perform this contract, Buyer has the right to have all
payments made returned to it.
18.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at
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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.
Community Housing Initiatives
14 W 21 st Street #3
Spencer, IA 51301
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.
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.
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25.3 The Real Estate will have a restrictive covenant filed indicating the property must
remain an owner occupied single family 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 COMMUNITY HOUSING INITIATIVES
By: By:
Roy D. Buol, Mayor Printed ame:
Dated: Dated:
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