Property Acquisition - 501 E. 15th Street Amendment to Purchase Agreement_Blum Copyright 2014
City of Dubuque Consent Items # 18.
ITEM TITLE: Property Acquisition - 501 E. 15th Street Amendment to Purchase
Agreement
SUMMARY: City Manager recommending approval of an amendment to the purchase
agreement for the acquisition of 501 E. 15th Street for the Bee Branch
Creek Restoration Project.
RESOLUTION Amending the Purchase Agreement for the Acquisition of
Real Estate owned by Blum Properties, Inc., in the City of Dubuque
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Acquisition of 501 E. 15th Street-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Resolution Resolutions
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: Bee Branch Creek Restoration Project, Acquisition of 501 E. 15th Street
(CIP #720654)
DATE: November 10, 2015
City Engineer Gus Psihoyos recommends City Council approval of an amendment to
the purchase agreement for the acquisition of 501 E. 15th Street to reflect that the City
will still close on the property in December of 2015, but payment to the property owner
will be made in January of 2016. The delay in payment is being made at the request of
the property owner. All other terms and conditions of the executed purchase agreement
shall remain in full force and effect.
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
Gus Psihoyos, City Engineer
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THE CITY OF ,. Dubuque
�E AN-AmMiCa
DuD
Masterpiece on the Mississippi 200"-2012.2013
TO: Michael C. Van Milligen, City Manager,----.,
FROM: Gus Psihoyos, City Engineer f
DATE: November 9, 2015
SUBJECT: Bee Branch Creek Restoration Project, Acquisition of 501 E. 15th Street
(CIP#7201654)
INTRODUCTION
The purpose of this memorandum is to request approval to amend the purchase
agreement for the acquisition of 501 E. 15th Street to reflect that the City will make
payment for the property in January of 2016. The City will still close on the property in
December of 2015 as all other terms and conditions of the executed purchase
agreement shall remain in full force and effect.
BACKGROUND
In February of 2013, the City Council passed Resolution 30-13 approving the acquisition
of 501 E. 15th Street, legally described as the "North 35 feet of Lot 255, South 15 feet of
Lot 255 and Lot 256 East Dubuque Addition, in the City of Dubuque, Dubuque County,
Iowa."
The purchase agreement outlined that the closing date would be "no later than
December 31, 2015." This was to allow Blum Properties, Inc. continued use of the
property in order to liquidate the scrap metal and salvaged materials.
DISCUSSION
While discussing the City's pending acquisition of the property in December of 2015, the
owner, Mr. Alvin Blum indicated that he would be in a position to comply with the
executed purchase agreement and sell the property in December. However, he asked if
the City could delay payment until January of 2016. Instead of delaying the closing date
for a month, it would be prudent for the City to obtain possession of the property per the
agreement. However, there is no budgetary or financial difference if the City makes
payment in December of 2015 or January of 2016, both are in Fiscal Year 2016.
Therefore, it makes sense to accommodate the owner's request and delay payment
until January of 2016 while retaining all other terms and conditions of the executed
purchase agreement
RECOMMENDATION
I recommend that the City accommodate the property owner's request and delay
payment for the property until January of 2016.
BUDGETIMPACT
The proposed amendment does not impact the budget.
REQUESTED ACTION
I respectfully request adoption of the attached resolution amending the purchase
agreement for 501 E. 15th Street to reflect that the City will make payment for the
property in January of 2016.
Attach.
Prepared by Deron Muehring
Cc: Barry Lindahl, City Attorney
Steve Brown, Project Manager
Deron Muehring, Civil Engineer II
2
RESOLUTION NO. 392-15
A RESOLUTION AMENDING THE PURCHASE AGREEMENT FOR THE
ACQUISITION OF REAL ESTATE OWNED BY BLUM PROPERTIES, INC. IN THE
CITY OF DUBUQUE
Whereas, the City of Dubuque intends to acquire certain properties located in
the area of the Bee Branch Creek Restoration Project for stormwater mitigation
activities as recommended in the "Drainage Basin Master Plan;"
Whereas, a purchase agreement was finalized with the Blum Properties,
Inc. , owner of the property scheduled for acquisition;
Whereas, the City Council passed Resolution 30-13 approving the acquisition of
501 E. 15th Street for the Bee Branch Creek Restoration Project; and
Whereas, per the terms of the purchase agreement, the City is to close and take
ownership of the property in December of 2015;
Whereas, the owner has requested that the City make payment for the property in
January of 2016; and
Whereas, it is in the best interest of the City to purchase the property in December
of 2015 as outlined in the agreement and to accommodate the owner's request and
delay payment for the property until January of 2016.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
That amending the purchase agreement for 501 E. 15th Street to reflect that the City
will make payment for the property in January of 2016 is hereby approved. All other
terms and conditions of the agreement shall remain in full force and effect. •
Passed, approved and adopted this 16th day of November, 201
Attest:
moi/
Kevi S. Firnstahf, CM , City Clerk
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Roy D. Buol, Mayo
THE CITY OF
DUB
Masterpiece on the /ssissippi
BARRY LIND
CITY ATTOR
To:
Ken TeKippe
Finance Director
MEMORANDUM
DATE: December 23, 2015
RE: Blum Properties, Inc. — 501 E. 15th Street
Ken:
We closed last Friday, December 18, 2015 on the above -referenced property. Attached
is an executed copy of the Closing Statement, as well as City of Dubuque check no.
436177 dated December 23, 2015 for $508.83 for the property taxes.
Thank you for your assistance regarding this matter.
BAL:tls
Attachment
F:\USERS\tsteckle\Lindahl\Blum Properties\Closing Docs\TeKippe_ClosingStatement&PropertyTaxCheck_122315.doc
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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
CLOSING CHECKLIST
CITY OF DUBUQUE, IOWA
AND
BLUM PROPERTIES, INC.
December 11, 2015 @ 11:00 AM
300 Main Street, Suite 330
(501 E. 15th Street)
The north 35 feet of lot 255 in East Dubuque No. 2, in the City of Dubuque, Iowa,
according to the recorded Plat thereof
and
Lot 256 and the southerly 15 feet of lot 255, in East Dubuque No. 2, an Addition to the
City of Dubuque, Iowa, according to the recorded Plat of said Addition
1. Abstracting fees
2. Warranty Deed
3. Deed Recording Fee
4. Declaration of Value
5. Groundwater Hazard Statement
6. Net Purchase Price at Closing $
Due January 6, 2016 $276,999.00
7 Real Estate Transfer Tax
Payable to Dubuque County Recorder
City
City
City
City
City
City
City
Blum Properties
Real Estate Taxes for Fiscal Year Blum Properties
Payable to Dubuque County Treasurer
10. Amendment to Purchase Agreement City/Blum Properties
11,. Lease Agreement City/Blum Properties
12. Insurance Certificates Blum Properties
13. Bill of Sale for all of the buildings Blum Company
14. Closing Statement City
121015ba1
CLOSING CHECKLIST
CITY OF DUBUQUE, IOWA
AND
BLUM PROPERTIES, INC.
December 11, 2015 @ 11:00 AM
300 Main Street, Suite 330
(501 E. 15th Street)
The north 35 feet of lot 255 in East Dubuque No. 2, in the City of Dubuque, Iowa,
according to the recorded Plat thereof
and
Lot 256 and the southerly 15 feet of lot 255, in East Dubuque No. 2, an Addition to the
City of Dubuque, Iowa, according to the recorded Plat of said Addition
Due from. Seller
Property Purchase Price
January 6, 2016
Dubuque County Recorder
Real Estate Transfer Tax
Dubuque County Treasurer
Real Estate Taxes
Total Real Estate Taxes for
North 35 feet of Lot 255 $174.67
2nd half Fiscal Year 2014-15 $92.00
1st half Fiscal Year 2015-16 $82.67
07/01/15 —12/11 /15
Total Real Estate Taxes for
Lot 256 and Southerly 15 feet
Of Lot 255 $334.16
$442.40
$508.83
2nd half Fiscal Year 2014-15 $176.00
1st half Fiscal Year 2015-16 $158.16
07/01/15 —12/11/15
Total Due from Sellers $951.23
2
Due from Buyer
$277,000.00
Net Due from Buyer
January 6, 2016
CITY OF D
By:
$276,048.77
QUE, IOWA (BUYER) BLUM PROPERTIES, INC. (SELLER)
B A. Lindahl, City Attorney
By:
Alvin Blum, President
3
CITY OF DUBUQUE
CHECK NO
436177
AMOUNT
508.83
VENDOR
1691 DUBUQUE COUNTY TREASURER
CHECK DATE
12/23/15
Activity/Project
Account
Purchase Order
Invoice No
Amount
Description
3401654
73111
/6005440
501E15TH
508.83
REAL ESTATE TAXES -
zzzz
TOTAL 508.83
DUBUQUE BANK$; TRUST'
DU UQUE1Q 11A
PAY
FIVE HUNDRED EIGHT. DOLLARS & 83 CENTS
DUBUQUE., COUNT'(TRE,ASUF
7211 ENTRIL. AVE
DUBUQUE to 52001 706:1
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