Initiation for Condemnation for Coates Property at 13102_Hearing Copyrighted
June 5, 2017
City of Dubuque Public Hearings # 2.
ITEM TITLE: Initiation for Condemnation for Coates Property at 13102
Derby Grange Road
SUMMARY: Proof of publication on notice of public hearing to consider
adoption of a resolution which establishes and sets the Just
Compensation Valuation (Fair Market Value)for property at
13102 Derby Grange Road and authorizes staff to begin
good faith negotiations with Mrs. Eileen Coates, and if a
settlement cannot be reached through good faith
negotiations, authorizes staff to proceed with eminent
domain proceedings for the easement acquisition of the
property for sanitary sewer to provide services to the Derby
Grange LLC. Development and Derby Grange Road
service area.
RESOLUTION Establishing Fair Market Value, directing
good faith negotiations, and granting exercise of Eminent
Domain Authority by the City of Dubuque to acquire land or
rights in Agricultural Land for a site-specific public
improvement project at 13102 Derby Grange Road
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Extension of Sanitary Sewer to Derby Grange Road City Manager Memo
and John F. Kennedy Road-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Proof of Publication Supporting Documentation
Proof of Mailing Supporting Documentation
THE CDubuque
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Masterpiece on the Mississippi -2012I
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Extension of Sanitary Sewer to Derby Grange Road and John F. Kennedy
Road Establishing Fair Market Value and Authorizing Commencement of
Eminent Domain Proceedings, If Necessary
DATE: May 26, 2017
The City has entered into an agreement with Derby Grange, LLC. to develop
approximately 100 homes at the corner of Derby Grange Road and Kennedy Road. As
part of the agreement the City must provide City water and sewer to the property.
Water service will be provided along Kennedy Road. The ideal option for serving the
property with sanitary sewer crosses the property owned by Mrs. Eileen Coates and the
late Douglas Coates. This route allows for sewer service to the Derby Grange, LLC.
development as well as future provision of sewer service to the most property within the
area with the lowest overall cost for installation.
The City currently has a written agreement from Mrs. Brimeyer, one of the other two
land owners, that she will work with the City to obtain an easement after the final
alignment for the sanitary sewer has been determined. Also, the City has a verbal
understanding from Mr. Cherlund that the easement for the sanitary sewer along his
property will be approved.
The City is attempting to negotiate an easement acquisition agreement with Mrs. Eileen
Coates and will continue to do so. However, the time lines for provision of sewer
service to the Derby Grange, LLC. development require the condemnation process to
be initiated in the event a voluntary negotiation is not successful.
City Engineering Gus Psihoyos recommends the City Council adopt a resolution which
establishes and sets the Just Compensation Valuation (Fair Market Value) at $22,751
based on the certified Acquisition Appraisal and Review Appraisal Report. The
Resolution also authorizes staff to begin good faith negotiations with Mrs. Eileen
Coates, and if a settlement cannot be reached through good faith negotiations,
authorizes staff to proceed with eminent domain proceedings for the easement
acquisition of the property for sanitary sewer to provide services to the Derby Grange
LLC. Development and Derby Grange Road service area.
I concur with the recommendation and respectfully request Mayor and City Council
approval. J
1 r �1L�1#'L y ttrt�A&Znt.-
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
2
THE CITY OF Dubuque
DUB E Al,-AndcaNy
Masterpiece ora the Mississippi 200"..,012.211,,
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer '1�;?
SUBJECT: Extension of Sanitary Sewer to Derby Grange Road and John F. Kennedy
Road Establishing Fair Market Value and authorizing commencement of
eminent domain proceedings, if necessary
DATE: May 24, 2017
INTRODUCTION
The purpose of this memorandum is to provide the City Council with information related
to the property acquisition (permanent and temporary easements) for the extension of
sanitary sewer to the corner of Derby Grange Road and John F. Kennedy Road and
other areas north of Derby Grange Road and establishing the Just Compensation
Valuation (Fair Market Value) of necessary property for the extension of sanitary sewer
to the Derby Grange Road service area.
BACKGROUND
The City has entered into an agreement with Derby Grange, LLC. to develop
approximately 100 homes at the corner of Derby Grange Road and Kennedy Road. As
part of the agreement the City must provide city water and sewer to the property. Water
service will be provided along Kennedy Road. The ideal option for serving the property
with sanitary sewer crosses the property owned by Mrs. Eileen Coates and the late
Douglas Coates. This route allows for sewer service to the Derby Grange, LLC.
development as well as future provision of sewer service to the most property within the
area with the lowest overall cost for installation.
We currently have a written agreement from Mrs. Brimeyer, one of the other two land
owners, that she will work with us to obtain an easement after the final alignment for the
sanitary sewer has been determined. Also, we have a verbal understanding from Mr.
Cherlund that the easement for the sanitary sewer along his property will be approved.
PROPERTY ACQUISITION
The City is attempting to negotiate an easement acquisition agreement with Mrs. Eileen
Coates and will continue to do so. However, the time lines for provision of sewer
service to the Derby Grange, LLC. development require the condemnation process to
be initiated in the event a voluntary negotiation is not successful.
The City is ready to begin the acquisition process as soon as the Public Hearing is held
for the Coates Property.
CERTIFIED APPRAISAL PROCESS
Due to the impacted property, the City felt that it was important to have uniformity and
consistency with the appraisal valuation. As a result, the City retained the services of
Felderman Appraisals to provide real estate property appraisal services for the
extension of sanitary sewer to provide service to Derby Grange Road service area.
The appraisal agent is responsible for preparing, signing, and furnishing to the City a
written acquisition appraisal report for the Coates property to be acquired following
generally accepted standards of professional appraisal principles and techniques in
accordance and compliance with the following:
■ State of Iowa law.
■ Iowa Department of Transportation's "Appraisal Policy & Procedures Manual".
■ Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 as amended, in accordance with Part 24 of Title 49 of the Code of Federal
Regulations.
■ Jurisdictional Exception Rule and Supplemental Standards contained in the
Uniform Standards of Professional Appraisal Practice (USPAP).
■ Completed in a manner consistent with the appraisal assignment as specified in
the Iowa Department of Transportation's "Appraisal Operational Manual"
■ Appraisal firm, agent(s) or employee(s) shall have no vested interest, direct or
indirect, in the real property being appraised for acquisition.
JUST COMPENSATION VALUATION
Felderman Appraisals completed their appraisal report and established the certified Just
Compensation Valuation (Fair Market Value) for the Coates property to be acquired.
The property is identified as follows:
Property Owner Zoning Land Use Just Compensation
Value
$ 22,751.00 (based
Coates Agricultural Agricultural on $14,000.00 per
acre rate
RECOMMENDATION
I recommend that the City Council establish the Just Compensation Valuation (Fair
Market Value) for the subject property to be the value as set forth above, based on the
$14,000 per-acre rate given in the certified Acquisition Appraisal and Review Appraisal
report. I also recommend that the City Council authorize staff to begin good faith
negotiations with the identified property owner and if a settlement cannot be reached
through good faith negotiations, commence eminent domain proceedings.
FUNDING SUMMARY
The current estimate of probable cost for the easement acquisition for the extension of
sanitary sewer to provide service to the Derby Grange service area are as follows:
Description Estimated Cost
Property Acquisition (Permanent and Temporary Easements) $ 22,751.00
Property Acquisition Cost Estimate $ 22,751.00
The anticipated project funding is summarized as follows:
CIP No. Fund Description Fund Amount
7102729 Derby Grange Annexation $ 22,751.00
Total Project Funding 22.751.00
ACTION TO BE TAKEN
The City Council is requested to adopt the attached resolution which establishes and
sets the Just Compensation Valuation (Fair Market Value) for the identified property to
be acquired based on the certified Acquisition Appraisal and Review Appraisal report.
The resolution also authorizes staff to begin good faith negotiations with the identified
property owner and if a settlement cannot be reached through good faith negotiations,
authorizes staff to proceed with eminent domain proceedings for the easement
acquisition of the property for sanitary sewer to provide services to the Derby Grange
LLC. Development and Derby Grange Road service area.
cc: Jenny Larson, Budget Director
RESOLUTION NO. 203-17
ESTABLISHING FAIR MARKET VALUE, DIRECTING GOOD FAITH
NEGOTIATIONS, AND GRANTING EXERCISE OF EMINENT DOMAIN AUTHORITY
BY THE CITY OF DUBUQUE TO ACQUIRE LAND OR RIGHTS IN AGRICULTURAL
LAND FOR A SITE-SPECIFIC PUBLIC IMPROVEMENT PROJECT AT 13102 DERBY
GRANGE ROAD
WHEREAS, the City of Dubuque, Iowa, intends to acquire certain real property
owned by Douglas and Eileen Coates (Owner) and legally described as:
Lot 1 of the Southeast '/ of the Southeast % of Section 8, Township 89
North, Range 2 East of the 5th P.M., in Dubuque County, Iowa, according
to the recorded plat thereof
(the Property) as shown on Exhibits A-1 and A-2 to improve the City enterprise
providing for sewer systems along Derby Grange Road; and
WHEREAS, the acquisition of agricultural real estate, or interests in agricultural
real estate, will be necessary in order to make the necessary public improvements; and
WHEREAS, site-specific plans have been developed and presented to the City
for said project, identifying the land, or interests in land, of private property owners who
will be affected thereby; and
WHEREAS, a public hearing was conducted after mailed and published notice to
all affected owners and contract purchasers of agricultural land as required by law; and
WHEREAS, the City has caused an appraisal of the Property to be made and the
appraised value of the Property is $22,751.00, based on a per -acre rate of $14,000; and
WHEREAS, the City Council will pursue informal negotiations with the private
property owners and will only resort to eminent domain authority in those instances
where informal negotiations prove to be unsuccessful; and
WHEREAS, the passage of a resolution to proceed with the project, declaring the
City's intent to fund the project and authorizing the use of eminent domain authority
prior to the commencement of negotiations is necessary so that delay does not result if
informal negotiations prove to be unsuccessful; and
WHEREAS, the City Council believes that the site-specific plans for the
construction of the proposed public improvement will be pursued, that financing is
available for the actual construction of this public improvement and that the public
improvement is in the best interests of the citizens of Dubuque, Iowa.
NOW THEREFORE BE IT RESOLVED by the City Council of Dubuque, Iowa:
Section 1. The fair market value of the Property is hereby established to be
$22,751.00, based on the $14,000.00 per -acre rate given in the certified Acquisition
Appraisal and Review Appraisal report.
Section 2. The City of Dubuque is hereby authorized to commence negotiations
with the Owner of the Property and any other interested parties for the purchase of the
Property for a purchase price which is not less than the fair market value established by
this Resolution.
Section 3. That the use eminent domain authority to acquire real estate, or
easement rights and interests in real estate from those owners of agricultural land
identified in the current site-specific plans for the improvements is hereby authorized.
Attest:
Passed, approved, and adopted this 5th day of J ne, 2017.
Kevin ' . Fimstahl, CMC City Clerk
C. IL,
Roy D. Buol,layor
LENER
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IY d(!1 EI)CG Pages or sheets covered by this seal: THIS PAGE ONLY OWNER EILEEN C,CUA TES
Exhibit A-2 DERBY GRANGE RD. +�•=='
7rth Sanitary Sewer Branch
cement#3-Permanent
�a=1,926.62 SF ,
x442 Ac x$14,0(,
5anitary Sewer Collector
Easement#1-Permanent
Area=30,678.94 SF /
0.7043 Ac x$14,000 I Ac=$9,860V1,
Temporary
Area=2,648.90 SF
Easement#1-Temporary ^308 Ac x$1,120 i Ac_=$68.10
Area=45,946.62 SF
1.0548 Ac x$1,1201 Ac=$1,181.38
West Sanitary Sewer Branch 71
Easement#2-Permanent rte.
Area=2,813.56 SF /�
0.0646 Ac x 814.0001 k=$904 40 Temporary
Area=20,294.14 SF
Easement#2-Temporary 0.4659 Ac Ac=$521.81
Area=4,798.54 SF
0.1102 Ac x$1,1201 Ac $123 ` II
At Sanitary Sewer Uranch
cement#4-Permanent
=17,683.60 SF
04060 Ac x$14,0001 Ac=$5,684.00
DESIGN TEAM: TIC CITY OF DUBUQUE-ENGINEERING DEPT DUBUQUE COUNTY I PROJECT NUMBER: 7101350 1 Derby Grange Sanitary Sewer-Coates Easement Exhibit SHEET: D.00 REV.02 Mar 17
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper
on the following dates: May 22, 2017, and for which the charge is $46.56.
u, L�
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this o?,3 day of . 20/x.
el
otary Public in and for Dub que County, Iowa.
MARY K WESTERMEYER `.
Commission Nurder 15488 ,
ow
MY Commission Exp•Feb.1.2020
offer cannot be less
than the appraised
value as determined by
the appraisal.If negoti-
ations are unsucces-
sful, then the law
CITY OF DUBUQUE, requires additional
IOWA notices and hearings
OFFICIAL NOTICE prior to the taking of
PUBLIC NOTICE is any property or
hereby given that the interest in property.
City Council of the City Funding for this
of Dubuque, Iowa,will project is expected to
hold a public hearing be obtained from cash
on the 5th day of June, on hand in any fund of
2017 at 6:00 p.m.in the the City which can be
Historic Federal Build- legally used for such
ing, 350 West 6th purposes and funds
Street, second floor, borrowed for this pur-
Dubuque, Iowa, at pose through the issu-
which meeting the City ance of revenue bonds.
Council will receive Final selection of the
public input into the design for this project
consideration of whe- 1 will be made based
ther or not to authorize upon engineering de-
the use of eminent sign standards that are
domain authority(con- applicable. to public
demnation) with re- improvements, includ-
spect to the proposed ing the topography of.
sewer enterprise pub- the properties and the
lic improvements along anticipated service
Derby Grange Road volumes and capacities
now under consider- of the facilities.
ation and the final The person desig-
design of that project. nated by the City of
The current site- Dubuque as the person
specific design for this with whom communi-
project involves a cations should be
portion of the real made about this
estate owned by Doug- project is City Engineer
las and Eileen Coates Gus Psihoyos,50 West
as shown by the 13th Street, Dubuque, .
records of the Dubuque IA 52001, (563) 589-
County Auditor. 4270, gpsihoyo@cityof
The purpose of the dubuque.org.
Project is to expand At the meeting, the
and improve the City City Council will 're-
enterprise , providing ceive oral and written
for sewer -systems comments from any
along Derby Grange resident or property
Road. owner of said City to
Following the public the above action.Writ-
meeting, the City ten comments regard-
Council may consider a ing the above public
resolution or other hearing may be
declaration of intent to submitted to the City .
acquire or condemn,if Clerk's Office, City
necessary, all or a Hall,50-W.13th Street,
Portion of the property on or before said time
for the purpose of of public:hearing.
Public improvement Copies of supporting
The laws of the state documents for the
of Iowa require, and public hearings are on
the City of Dubuque file in the City Clerk's
will pursue, informal: Office,-and may be
negotiations concern-; viewed during normal
ing the just compen-'; working hours.
sation required for any' Any visual or hearing
property,or interest in impaired persons need-
property, taken or ing special assistance
affected by this or persons with special
Project In the event accessibility needs
the City elects to should contact the City
.proceed with negoti- Clerk's Office at (563)
ations under the Emi- 589-4100 or TTY 563)
nent Domain(Condem- 690-6678 at least 48
nation) Chapter of the hours prior to the
Iowa Cade, the pro- meeting.
perty owner will Dated this 22nd day of
receive a copy of the May,2017.
formal appraisal, prior Kevin S.Fimstahl,CMC
to the commencement City Clerk
of any negotiations.An it 5/22
i
Dubuque City Clerk's Office `
THE COF
-�� all
50 CitW 13''Street
DUtB AllAm�caCitr Dubuque, 1 52001-4864 {
E ' I I''' (563)589-411 00 office
(563)589-0890 fax
ctyclerk@cityofdubuque.org
Masterpiece on the Mississippi 2007•201z•2013 www.cityofdubuque.org
i
NOTICE OF PUBLIC HEARING
TO: Douglas M. and Eileen C. Coates i
Owners and contract purchasers of record as shown by the County Auditor
YOU ARE HEREBY NOTIFIED pursuant to Iowa Code §6B.2A that a public hearing will
be held before the Dubuque City Council in Council Chambers, second floor of the
Historic Federal Building, at 350 West 6th Street, Dubuque, IA 52001, at 6:00 p.m. on
the 5th day of June, 2017, for the purpose of receiving public input into the consideration
of whether or not to authorize the use of eminent domain authority (condemnation) with
respect to the proposed sewer enterprise public improvements along Derby Grange
Road now under consideration and the final design of that project. The current site-
specific design for this project involves a portion of the real estate owned by you as a
shown by the records of the Dubuque County Auditor.
What: Public Hearing of the Dubuque City Council
Location: Dubuque City Council Chambers
2nd floor, Historic Federal Building
350 West 6th Street
Dubuque, Iowa 52001
Time: 6:00 p.m.
i
Date: June 5, 2017 i
The purpose of the project is to expand and improve the City enterprise providing for
sewer systems along Derby Grange Road.
Following the public meeting, the City Council may consider a resolution or other
declaration of intent to acquire or condemn, if necessary, all or a portion of your
property for the purpose of public improvement.
The laws of the State of Iowa require, and the City of Dubuque will pursue, informal
negotiations with you concerning the just compensation required for any property, or
interest in property, taken or affected by this project. In the event the City elects to
proceed with negotiations under the Eminent Domain (Condemnation) Chapter of the
Iowa Code, you will receive a copy of the formal appraisal, prior to the commencement
of any negotiations between you and the City of Dubuque. You cannot be offered less
I
i
i
than the appraised value as determined by the appraisal. If negotiations are
unsuccessful, then the law requires additional notices and hearings prior to the taking of
any property or interest in property.
Funding for this project is expected to be obtained from cash on hand in any fund of the
City which can be legally used for such purposes and funds borrowed for this purpose
through the issuance of revenue bonds.
Final selection of the design for this project will be made based upon engineering
design standards that are applicable to public improvements, including the topography
of the properties and the anticipated service volumes and capacities of the facilities.
The person designed by the City of Dubuque as the person with whom communications
u
should be made about this project is City Engineer Gus Psihoyos, 50 West 13th Street,
Dubuque, IA 52001, (563) 589-4270, gpsihoyo(c�cityofdubugue.org.
A statement of individual property rights prepared by the Iowa Attorney General is being
mailed to the owners of agricultural land affected by the existing design of the project,
together with a copy of the State statute describing this notice and the purpose for the
public hearing.
a
Please plan to attend the public hearing and consult with an attorney concerning your
rights with respect to the process of eminent domain.
This notice was authorized by the City Council by resolution setting hearing and
directing notice passed at its regular meeting on the 1 St day of May, 2017.
Kevin . Firnstahl
City Clerk, CMC, City of Dubuque
Ir D-
D- it
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Postage $
Ej Certified Fee
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Return Reciept Fee �eme rk
(Endorsement Required)
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0 0
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Total Postage&Fees
®® rU rU
a C3 Sent To Douglas & Eileen Coates
17- r Street,Apt No.f 13102 Derby Grange Road
or PO Box No.
Dubuque, IA 52002
City,State,.ZIP+4
• s • • ON
■ Complete items 1,2,and 3.Also complete A. signature
item 4 if Restricted Delivery is desired. ❑Agent
■ Print your name and address on the reverse X ❑Addressee y
so that we can return the card to you.
Attach this card to the back of the mailpiece, B. Received by(Punted Name) C. Data of Delivery
■
or on the front if space permits.
D. Is delivery address different from item 1? ❑Yes i
i' 1. Article Addressed to; If YES,enter delivery address below: ❑No I
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Douglas & Eileen Coates
13102 Derby Grange Road i
Dubuque, IA 52002 s. service Type
XCertified Mail ❑Express Mail
❑Registered Return Receipt for Merchandise i
❑Insured Mail ❑C.O.D.
4. Restricted Delivery?(Extra Fee) ❑Yes
2. Article Number 7002 2050 0004 5226 91,94
(transfer from service label) ___
I PS Form 3811,February 2004 Domestic Return Receipt 102595-02-M-1540;
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UNITED STATES POSTAL SERVICE First-Class Mail
Postage&Fees Paid
USPS
I Permit No.G-10 i
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t
• Sender: Please print your name, address, and ZIP+4 in this box • ' j
I �
City Clerk's Of ilce
;v0 W. 13th. St.
I
Dubuque, IA 5200-1
I
I
I
I I
I
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SENDER:COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY
■ Complete items 1,2,and 3.Also complete A. Signature
item 4 if Restricted Delivery is desired. //�l �'j 11 Agent
X
■ Print your name and address on the reverse tom' JL (�? i�� ❑Addressee
so that we can return the card to you. B. Received by(Printed Name) C. Date of DEiivery
■ Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to: D. Is delivery address different from item 1? ❑Yes
If YES,enter delivery address below: ❑ No
Douglas & Eileen Coates
13102 Derby Grange Road
Dubuque, IA 52002 3. Service Type
�Certified Mail ❑Express Mail
❑Registered 0 Return Receipt for Merchandise
❑Insured Mail ❑C.O.D.
4. Restricted Delivery?(Extra Fee) ❑Yes
2. Article Number 7002 2030 0004 5226 9194
(Transfer from service labeq
PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540