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Transfer of Deed - 595 Angella Street_Craig Nesteby Copyright 2014 City of Dubuque Consent Items # 10. ITEM TITLE: Transfer of Deed -595 Angella Street SUMMARY: City Manager recommending approval to amend the contract for sale of the property at 595 Angella Street. RESOLUTION Approving an Amendment to the Land Contract Between the City of Dubuque, Iowa and Craig Nesteby SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type 595 Angella Street-MVM Memo City Manager Memo Memo Staff Memo Resolution Resolutions Amendment Supporting Documentation THE CITY OF Dubuque DUB E i" Masterpiece on the Mississippi 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to Real Estate Agreement for 595 Angella Street DATE: February 15, 2017 The property located at 595 Angella Street was sold on land contract to Craig Nesteby. The contract required that a single-family home was to be built on the existing foundation and Mr. Nesteby would receive a deed upon completion of the project. Mr. Nesteby has invested over $40,000 to rough-in the exterior of the home but is unable to obtain additional financing from a financial institution for completion of the project without having a deed to the property. Housing and Community Development Department Director Alvin Nash recommends City Council approval to amend the contract for sale of the property at 595 Angella Street. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing and Community Development Department Director THE CITY OF Dubuque AII11-America CiI.ty UB E1 Masterpiece on the Mississippi 2007.2012.2013 TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Amendment to Real Estate Agreement DATE: February 14, 2017 Introduction: The property located at 595 Angella Street was sold on land contract to Craig Nesteby. The contract required that a single-family home was to be built on the existing foundation and Mr. Nesteby would receive a deed upon completion of the project. Mr. Nesteby has rough-in the exterior of the home but has run into a financial quagmire that requires a deed to obtain additional financing for completion of the project. Background: Upon taking possession of the property in July 18, 2016, Mr. Nesteby used his own financial resources to rough-in the exterior of the home. It is estimated Mr. Nesteby has invested over $40,000 into the project. Financial institutions will not provide financing on the remainder of the project because Mr. Nesteby does not have title to the property. Until the terms of the contract agreements have been fulfilled the City retains ownership. City staff and Mr. Nesteby have been working with his financial institution to resolve the issues but the institution will only provide the financing if Mr. Nesteby has the deed. Discussion: Currently the project is idle and is in jeopardy of failing. Mr. Nesteby has exhausted his finances and must work on other construction projects to pay his living expenses. Mr. Nesteby and City staff were unaware financial institutions would require the deed for him to receive financial assistance. Mr. Nesteby has shown good faith in his desire to complete the project. The completed project will greatly enhance the neighborhood and increase property values as well as provide a great home for the Nesteby family. The City can help Mr. Nesteby by amending the contract agreement to deed the property to Mr. Nesteby who could then obtain financial assistance to complete the project. Action Step: The action requested is to obtain City Council approval to the amended Contract for Sale of the property at 595 Angella Street to Craig Nesteby. Prepared by: Crenna Brumwell, 300 Main Street Suite 330, Dubuque IA 52001 563 583-4381 Return to: Crenna Brumwell, 300 Main Street Suite 330, Dubuque IA 52001 563 583-4981 RESOLUTION NO. 59-17 APPROVING AN AMENDMENT TO THE LAND CONTRACT BETWEEN THE CITY OF DUBUQUE, IOWA AND CRAIG NESTEBY Whereas, the City of Dubuque (City) and Craig Nesteby (Buyer) entered into a Land Contract, recroded on Spetember 1, 2016 as document 2016-00011433, for the purchase of 595 Angella, legally described as Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa (the Property); and Whereas, the parties desire to amend the Land Contract with respect to the closing date and insurance requirements; and Whereas, the City Council of the City of Dubuque finds that the City of Dubuque should approve to the Amendment to Land Contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council of the City of Dubuque hereby approves the Amendment to Land Contract, a copy of which is attached hereto. Section 2. The Mayor is authorized and directed to sign the Amendment to Land Contract of behalf of the City of Dubuque. Section 3. The City Clerk is hereby authorized and directed to record the Amendment with the Dubuque County Recorder. Passed, approved and adopted this 20th day of February, 201 eng '-c-, oy D. Buol, Mayor Attest: Ke iri S. Firristahl, City Clerk Trish Gleason From: Jennifer Griffin Sent: Thursday, February 23, 2017 4:36 PM To: Crenna Brumwell Cc: Robert Boge; Trish Gleason Subject: 595 Angella - Special Warranty Deed Attachments: SpecialWarrantyDeed_090116.doc Crenna: Please review this special warranty deed. Assuming there are no changes, I will ask Trish to get the Mayor's signature on it and then attach a certified copy of Resolution No 279-16 to it and send to us. Once we have this finalized, we can set up a closing with Craig Nesteby (hopefully next week). Thanks, Jenny 1 11 11 11 0111 11 11 11 Doc ID 008598090005 Type GEN Kind: CONTRACT AMEND OR CORRECTION Recorded: 02/28/2017 at 02:13:19 PM Fee Amt: $27.00 Pape 1 of 5 Dubuque County Iowa John Murphy Recorder F11e2017_00002265 RECORDER'S COVER SHEET Amendment to Land Contract Preparer Information: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque, IA 52001, 563-589-4381 Taxpayer Information: Craig Nesteby 703 Hill Street Dubuque, IA 52001 Return Document To: Craig Nesteby 703 Hill Street Dubuque, IA 52001 Legal Description: Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa Grantors: City of Dubuque, A Municipal Corporation Grantees: Craig A. Nesteby, a single person Document or instrument number of previously recorded documents: 2016-00011433 Real Estate Contract Installments 2016-00001541 Real Estate Transfer — Groundwater Hazard Statement G; etv.i-n —a CI e - Tipp C�� Nous'in� AMENDMENT TO LAND CONTRACT BETWEEN THE CITY OF DUBUQUE, IOWA AND CRAIG NESTEBY This Amendment to Land Contract, dated for reference purposes th-;->? day of 14 , 2017, is entered by the City of Dubuque, Iowa, a municipal orporation ( eller) and Craig Nesteby, a single person, (Buyer). Whereas, Buyer and Seller entered a Land Contract, recorded on September 1, 2016 as document 2016-00011433, for 595 Angella, legally described as Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa (the Original Land Contract); and Whereas, the parties now agree to amend the Land Contract as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN BUYER AND SELLER AS FOLLOWS: Section 1. Par. 2 of the Land Contract is hereby amended to read as follows: Buyer, concurrently with due performance on his part shall be entitled to possession of said premises on the 24th day of February, 2017; and thereafter so long as he performs the obligation of this contract. Section 2. Par. 27 of the Land Contract is amended to read as follows: 27.1 Buyer must provide and maintain the following insurance dwelling coverage in the amount of $1,000,000 naming the City of Dubuque as an additional insured insurance until such time a certificate of occupancy is issued by the City of Dubuque Building Services Department. 27.2 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 Agreement, it shall become automatically void and neither party shall be bound by the terms and conditions set forth herein. 27.3 Buyer agrees to complete construction of a single family home re -using the existing foundation on the Real Estate. 27.4 There are no guarantees or warranties express or implied as to the 120616d1m environmental conditions existing at the Real Estate. 27.5 The terms of Section 27 shall in all respects survive the closing. BUYER: SELLER: CRAIG NESTEBY By: Craig +•steby, a single person CITY OF DUBUQUE By: State of Iowa, County of Dubuque This record was acknowledged before me this&1day of.AX, By 7 G'Gf �a �s KMMSIO 7452 5 COMMISSION N NO I NST MY COM ISSI N XPIRES State of Iowa, County of Dubuque This record was acknowledged before me thi By • v y >AI day of'Lj',, c 295 P AHL ',.. COMMISSION N NO T45 MY C IKEVIN FI N EXP/RES ' Slg a{tU�e ofv4 MNotary Public 2 Prepared by: Crenna Brumwell, 300 Main Street Suite 330, Dubuque IA 52001 563 583-4381 Return to: Crenna Brumwell, 300 Main Street Suite 330, Dubuque IA 52001 563 583-4981 RESOLUTION NO. 59-17 APPROVING AN AMENDMENT TO THE LAND CONTRACT BETWEEN THE CITY OF DUBUQUE, IOWA AND CRAIG NESTEBY Whereas, the City of Dubuque (City) and Craig Nesteby (Buyer) entered into a Land Contract, recroded on Spetember 1, 2016 as document 2016-00011433, for the purchase of 595 Angella, legally described as Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa (the Property); and Whereas, the parties desire to amend the Land Contract with respect to the closing date and insurance requirements; and Whereas, the City Council of the City of Dubuque finds that the City of Dubuque should approve to the Amendment to Land Contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council of the City of Dubuque hereby approves the Amendment to Land Contract, a copy of which is attached hereto. Section 2. The Mayor is authorized and directed to sign the Amendment to Land Contract of behalf of the City of Dubuque. Section 3. The City Clerk is hereby authorized and directed to record the Amendment with the Dubuque County Recorder. Passed, approved and adopted this 20th day of February, 201 eng '-c-, oy D. Buol, Mayor Attest: Ke iri S. Firristahl, City Clerk STATE OF IOWA CERTIFICATE of the CITY CLERK ) ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 59-17 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 22nd day of February, 2017. Kvin S. Firnstahl, CMC, City Clerk Prepared by: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Return to: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Tax Statement to: Craig A. Nesteby 703 Hill Street Dubuque, IA 52001 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL, AND CONVEY unto Craig A. Nesteby, a single person, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa (595 Angella Street) This Deed is exempt from transfer tax pursuant to Iowa Code Section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 279-16 of the City Council of the City of Dubuque adopted the 18th day of July, 2016, the terms and conditions thereof, if any, having been fulfilled. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated this27 lay of o'/ , 2017 at Dubuque, Iowa. CITY OF DUBU E IOWA Roil/ Bqc I, Mayor Attest: By: Kev'n . Firnstahl,y Clerk STATE OF IOWA SS COUNTY OF DUBUQUE On this "--rday of Pr Gr—c.i, 2017, before me a Notary Public in and for said County, personally appeared Roy D. Buol and Kevin S. Firnstahl to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Nota 1 ublic in and for Dubuque County, Iowa TRISH L, GLEASON mission Number 719986 y Commission Expires CERTIFICATE of the CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE ) I, Trish L. Gleason, do hereby certify that I am the duly appointed, qualified, Assistant City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such Assistant City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 279-16 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 23rd day of February, 2017. Trish L. Gleason, Assistant City Clerk (SEAL) Prepared bv: Crenna Brumwell. 300 Main Street. Suite 330. Dubuoue IA 52001 563 589-4381 Return to: Kris Neyen, 350 W. 6th Street, Dubuque IA 52001 563 589-4239 RESOLUTION NO. 279-16 DISPOSING OF CITY INTEREST IN REAL PROPERTY LOCATED AT 595 ANGELLA STREET, IN THE CITY OF DUBUQUE, IOWA Whereas, the City Council, by Resolution No. 265-16, dated the 5th day of July, 2016, declared its intent to dispose of City interest in real property located at 595 Angella Street, legally described as: Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa, according to the recorded Plat of said Addition (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on the 18th day of July, 2016 at 6:30 p.m. in the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa; and Whereas, it is the determination of the City Council that approval of the Real Estate Contract and subsequent Special Warranty Deed for the sale to Craig Nesteby according to the terms and conditions set out in the Real Estate Contract is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. The Real Estate Contract by and between the City of Dubuque and Craig Nesteby for the sale of the Property, a copy attached hereto, is hereby approved. Section 2. The Mayor and City Clerk are hereby authorized and directed to execute the Real Estate Contract conveying an interest in the Property to Craig Nesteby. Section 3. That the City Clerk is hereby authorized and directed to cause said Real Estate Contract to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Section 4. Upon successful completion of the terms and conditions outlined in the Real Estate Contract the Mayor and City Clerk are hereby authorized and directed to execute a Special Warranty Deed conveying the City's interest in the Property to Craig Nesteby. Section 5. That the City Clerk is hereby authorized and directed to cause said Special Warranty Deed to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Passed, approved, and adopted this 18th day of July, 2016. Attest: Kevin S.L.Firnstahl, Cit' Clerk (() Roy D. B , Mayor 11 11 01 11 11 11 11 11 11 11 Doc ID 008606840005 Type GEN Kind: DEED WITH RESOLUTION Recorded: 03/17/2017 at 03:40:34 PM Fee Amt: $32.00 Page 1 of 5 Revenue Tax: $0.00 Dubuque County Iowa John Murphy Recorder F11e2017-00003023 Prepared by: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Return to: Crenna Brumwell, 300 Main Street, Suite 330, Dubuque IA 52001 563 589-4381 Tax Statement to: Craig A. Nesteby 703 Hill Street Dubuque, IA 52001 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL, AND CONVEY unto Craig A. Nesteby, a single person, the following legally described real estate situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa (595 Angella Street) This Deed is exempt from transfer tax pursuant to Iowa Code Section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 279-16 of the City Council of the City of Dubuque adopted the 18th day of July, 2016, the terms and conditions thereof, if any, having been fulfilled. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated thisi ay of 4LO, 6,1z , 2017 at Dubuque, Iowa. CITY OF DUBUQ JE IOWA By: OL," Roy D. Bf, Mayor 'J 47.00 5-00 CU2 Attest: By: Kevin Firnstahl, cy Clerk STATE OF IOWA SS COUNTY OF DUBUQUE On this ,Q 'day of C6sr 1 , 2017, before me a Notary Public in and for said County, personally appeared Roy D. Buol and Kevin S. Firnstahl to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary 'ublic in and for Dubuque County, Iowa TRISH L„ OLSASON Commission Number 719986 My Commission Expires Prepared bv: Crenna Brumwell. 300 Main Street. Suite 330. Dubuoue IA 52001 563 589-4381 Return to: Kris Neyen, 350 W. 6th Street, Dubuque IA 52001 563 589-4239 RESOLUTION NO. 279-16 DISPOSING OF CITY INTEREST IN REAL PROPERTY LOCATED AT 595 ANGELLA STREET, IN THE CITY OF DUBUQUE, IOWA Whereas, the City Council, by Resolution No. 265-16, dated the 5th day of July, 2016, declared its intent to dispose of City interest in real property located at 595 Angella Street, legally described as: Lot 21 of Quigley's Subdivision of Out Lot 709 in the City of Dubuque, Iowa, according to the recorded Plat of said Addition (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on the 18th day of July, 2016 at 6:30 p.m. in the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa; and Whereas, it is the determination of the City Council that approval of the Real Estate Contract and subsequent Special Warranty Deed for the sale to Craig Nesteby according to the terms and conditions set out in the Real Estate Contract is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. The Real Estate Contract by and between the City of Dubuque and Craig Nesteby for the sale of the Property, a copy attached hereto, is hereby approved. Section 2. The Mayor and City Clerk are hereby authorized and directed to execute the Real Estate Contract conveying an interest in the Property to Craig Nesteby. Section 3. That the City Clerk is hereby authorized and directed to cause said Real Estate Contract to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Section 4. Upon successful completion of the terms and conditions outlined in the Real Estate Contract the Mayor and City Clerk are hereby authorized and directed to execute a Special Warranty Deed conveying the City's interest in the Property to Craig Nesteby. Section 5. That the City Clerk is hereby authorized and directed to cause said Special Warranty Deed to be delivered to the City Attorney's Office, together with a certified copy of the Resolution. Passed, approved, and adopted this 18th day of July, 2016. Attest: Kevin S.-Firnstahl, City CI€rk Roy D. Bu,, -Mayor CERTIFICATE of the CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE ) I, Trish L. Gleason, do hereby certify that I am the duly appointed, qualified, Assistant City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such Assistant City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 279-16 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 23rd day of February, 2017. Trish L. Gleason, Assistant City Clerk