Port of Dbq Land Sale, InitiatiMEMORANDUM
O~oberl7. 2002
TO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Port of Dubuque Land Sale
The City of Dubuque is acquiring property in the Port of Dubuque from Dubuque
Hardwoods/Bob Miller.
One of the contingencies in the acquisition agreement with Dubuque Hardwoods/Bob
Miller is the approval of this land being sold to Dubuque Initiatives. Dubuque Initiatives
is a pdvate not-for-profit with a redevelopment mission that focuses on downtown
Dubuque. This is necessary because the City of Dubuque does not have the funds
available to consummate the Dubuque Hardwoods/Bob Miller land purchase without this
prior arranged resale of the property.
The key elements to the sale of the property in the Port of Dubuque to Dubuque
Initiatives includes:
Dubuque Initiatives will pay $1,641,036 for the 4.902 acres being purchased
by the City from Dubuque Hardwoods/Robert Miller (indicated in green on the
attached map) and the streets and alleys consisting of 1.390 acres that
intersect these parcels (indicated in yellow on the attached map).
It is important that Dubuque Initiatives own all of this contiguous land to
create a marketable piece of property for potential development. This is
consistent with the economic analysis the City has done up to this point which
advises that the City has to assemble properties for any redevelopment to
occur.
The City would not assess Dubuque Initiatives for the street improvements
done to Market Street to create a road. as it is now undeveloped, but any
future improvements would be assessable.
The City would have an option to purchase all of this property back within five
years for the same price ($1,641,036) plus one percent over the interest
Dubuque Initiatives would have earned on their investments in that period and
buyer's holding costs.
I will be recommending to the City Council inclusion of these funds in the next
Five-Year Capital Improvement Program budget.
Should Dubuque Initiatives sell the property, Dubuque Initiatives would first
receive their money back as formulated above in Section #3, and any
remaining money would go to the City. This is in recognition of the fact that
the City is not only acquiring this property, but must move the occupants.
demolish the buildings, rough grade the property and seed the area.
The City would indemnify Dubuque Initiatives from any pre-existing
environmental conditions.
The City would close on the property purchased from Dubuque
Hardwoods/Bob Miller on December 1, 2002, and would take possession of
the property on July 1, 2003. The closing on the sale to Dubuque Initiatives
would take place on December 2, 2002, with Dubuque Initiatives taking
possession on November 1, 2003. The gap between the City taking
possession on July 1, 2003, and Dubuque Initiatives taking possession on
November 1, 2003, would allow time for the City to demolish the structures
and rough grade and seed the property.
Another party owns a 0.529 acre parcel (indicated in pink on the attached
map) 'n amongst the Dubuque Initiatives parcel. The City would agree to
acquire this parcel prior to the November 1, 2003 possession date. Until that
time, part of Washington Street (0.697 acres indicated in white on the
attached map) would not be vacated, as this lot could not be land-locked
while under separate ownership. Upon acquisition, the City would deed this
property and Washington Street over to Dubuque Initiatives as part of the
original purchase price. Negotiations have already begun with the property
owner.
The sale to Dubuque Initiatives appears on the October 21, 2002 City Council Agenda
as a Set for Public Hearing item, with final consideration on November 25, 2002. As
required in an Urban Renewal District, in this period between the October 21 meeting
and the November 25 meeting, competitive proposals could be submitted for acquisition
of the property.
I respectfully recommend that a public hearing be set for November 25, 2002 to
consider sale of this 6.292 acre parcel to Dubuque Initiatives.
MCVM/jh
Attachment
Michael C. Van Milligen
CC:Dubuque Initiatives Board of Directors
Brian Kane, Esq.
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Tim O'Brien, Esq.
Pauline Joyce, Administrative Services Manager
Bill Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
October 17, 2002
TO:Michael Van Milligen, City Manager
FROM:William Baum, Economic Development Director
SUBJECT:Disposition of Former Dubuque Hardwoods Property to Dubuque
Initiatives
INTRODUCTION
This memorandum presents for City Council consideration a Resolution initiating
disposition by sale of the former Dubuque Hardwoods site to Dubuque Initiatives. The
attached Resolution establishes the minimum development requirements for the site,
approves an Offer to Buy Real Estate and Acceptance with Dubuque Initiatives, and
solicits competitive proposals from other developers. Unless competing proposals are
received, the City Council will act on the Offer to Buy Real Estate and Acceptance at a
public hearing on November 25, 2002.
BACKGROUND
The City has negotiated with Dubuque Initiatives, a non-prefit development
organization, to assist the City in the purchase of the former Dubuque Hardwoods
property. Dubuque Initiatives, whose redevelopment mission is a focus on the city's
downtown core, will assist the City by providing a portion of the financial resources to
secure the purchase of the Dubuque Hardwoods property at this time. For that
investment, the City will sell the property to Dubuque Initiatives but retain an option to
purchase all of the property back within five years. The current Board of Directors of
Dubuque Initiatives includes: Katie Krieg, President, Bill Callahan, Dave Fremmelt,
Judie Fjellman, Rick Dickinson, Terry Duggan, Ann Michalski, John Markham and Mike
Van Milligen. The City Council members and City Manager abstained from voting on
the Offer to Buy Real Estate and Acceptance.
Because the Dubuque Hardwoods property is located in an urban renewal district, the
City must follow state law urban renewal disposition requirements. In general, the law
requires that the City may sell or lease property to private persons only under
reasonably competitive bidding procedures. These include an invitation for competing
proposals and a thirty-day public notice of the City's intent to execute any land sale or
lease contract. Additionally, the City must dispose of the property at its fair market
value for uses in accordance with the urban renewal plan.
DISCUSSION
Disposition Resolution
Accompanying this memorandum is a Resolution that initiates the proceedings required
for disposing of the Dubuque Hardwoods property in the Ice Harbor Urban Renewal
District to Dubuque Initiatives. n brief, the resolution: 1) establishes the fair market
value of the property; 2) approves minimum requirements for submission of competitive
proposals to the City Council for the purchase and development of the property; 3)
approves the form of the Offer to Buy Real Estate and Acceptance from Dubuque
Initiatives; 41 sets a procedure for receipt and review of competing proposals; 5)
declares that the Dubuque Initiatives' Offer to Buy satisfies the offering requirements
and that the City intends to execute the Offer to Buy if no other qualified proposal is
submitted; and, 6) directs the publication of notice of the opportunity to compete for the
pumhase and development of the site.
The Resolution sets the disposition price for the property at its fair market value of
$1,641,036.00. This price is based on a recent appraisal by Felderman Appraisals.
Offer to Buy Real Estate and Acceptance
The terms of the Dubuque Initiatives' Offer to Buy Real Estate and Acceptance are
ncorporated in the Resolution and establish the terms of the sale of the property to
Dubuque Initiatives. The key elements of the agreement include the following:
1)The purchase price is $1,641,036, with $1000 down payment, $1,049,000
due at closing and the balance of $591,036 due on July 1,2003.
2)The closing is scheduled for December 2, 2002 with possession
November 1, 2003.
3)The sale is contingent upon an acceptable Phase II environmental report.
The City will agree to indemnify and hold harmless the buyer for any
environmental problems that occurred prior to taking possession of the
property.
4)The City will have an option to purchase back the real estate for a period
of five years from the date of closing. The option pnce for the purchase
is the City's original purchase price of $1,641,036.00 plus Dubuque
Initiative's holding costs plus interest calculated periodically at the average
daily Federal Funds rate during the five year period. That rate is equal to
1% over the interest rate Dubuque Initiatives is currently earning on its
cash investments.
5)Any net profit resulting from the sale of the property by Dubuque
Initiatives, above and beyond the original purchase price of $1,641,036.00
will be paid to the City.
6)The City agrees to acquire title to additional property described as Lots
20-30 in Block 21, Dubuque Harbor Improvement Co.'s Addition. If the
City fails to acquire title to that property by July 1, 2003, the parties will
negotiate a reduced land price for the original purchase price or the City
will be required to exercise its option.
7)Dubuque Initiatives will agree to participate in the joint marketing and
development of the property with the other City-owned property in the Port
of Dubuque in accordance with the objectives of the Master Plan for the
Port of Dubuque.
Although Dubuque Initiatives has executed the Offer to Buy Real Estate and
Acceptance, the City Council may not gl-ye final approval to the contract at this time.
Urban renewal law requires that other qualified parties must be given an opportunity to
submit competing proposals. The above-described Resolution provides for that
procedural requirement with the resu It that the City Council may not approve the
contract before November 25, 2002.
RECOMMENDATION
I recommend that the City Council initiate the procedures required for the disposition of
the former Dubuque Hardwoods site to Dubuque Initiatives. This action is consistent
with and flows from the Council's objective to redevelop property in the Port of Dubuque
in accordance with the recently adopted Master Plan. Dubuque Initiatives is a key
economic development partner of the City and, through this purchase, will assist the
City financially in meeting the overall goals for the redevelopment of the Port of
Dubuque.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
attachments
F:\USERS\Pmyhre\W PDOCS\LOAN DOC\D BQHARDWOODS\offertoDLmem.doc
RESOLUTION NO. 570-02
RESOLUTION (1) APPROVING THE MINIMUM REQUIREMENTS, COMPETITIVE
CRITERIA, AND OFFERING PROCEDURES FOR DISPOSITION OF CERTAIN
REAL PROPERTY IN THE ICE HARBOR URBAN RENEWAL DISTRICT; (2)
DETERMINING THAT THE OFFER TO BUY REAL ESTATE AND ACCEPTANCE
SUBMITTED BY DUBUQUE INITIATIVES SATISFIES THE OFFERING
REQUIREMENTS WITH RESPECT TO THE REAL PROPERTY AND DECLARING
THE INTENT OF THE CITY COUNCIL TO APPROVE THE OFFER TO BUY REAL
ESTATE AND ACCEPTANCE WITH DUBUQUE INITIATIVES IN THE EVENT
THAT NO COMPETING PROPOSALS ARE SUBMITTED; AND (3) SOLICITING
COMPETING PROPOSALS.
Whereas, the City Council of Dubuque, Iowa, did on March 4, 2002, adopt an Amended
and Restated Urban Renewal Plan for the Ice Harbor Urban Renewal Distdct (the "Plan") for the
Urban Renewal Area described therein; and
Whereas, such Plan provides, among other things, for the disposition of properties for
private development purposes as a proposed economic development action; and
Whereas, Dubuque Initiatives ("Developer") has submitted to the City an Offer to Buy Real
Estate and Acceptance for the acquisition of certain property hereinafter described for
redevelopment purposes, together with the request that this property be made available for
disposition as rapidly as possible; and
Whereas, in order to establish reasonably competitive bidding procedures for the
disposition of the property in accordance with the statutory requirements of Chapter 403, Code of
Iowa, 2001, specifically, Section 403.8, and to assure that the City extends a full and fair
opportunity to all developers interested in submitting a proposal, a summary of submission
requirements and minimum requirements and competitive cfiteda for the property offering is
included herein; and
Whereas, said Developer has tendered an Offer to Buy Real Estate and Acceptance with
the City, attached hereto as Exhibit 'A"; and
Whereas, to recognize both the firm proposal for disposition of the property already
received by the City, as described above, and to give full and fair opportunity to other developers
interested in submitting a proposal for development of the property, this Council should by this
Resolution:
t)
Set the Fair Market Value of the parcel as determined by an independent appraiser
for uses in accordance with the Urban Renewal Plan;
2) Approve the minimum requirements and competitive criteria included herein;
3)Approve as to form the Developer's Offer to Buy Real Estate and
Acceptance attached hereto as Exhibit "A';
4)Set a date for receipt of competing proposals and the opening thereof;
5)Declare that the proposal submitted by Developer satisfies the minimum
requirements of the offering, and that in the event no other qualified proposal
is timely submitted that the City Council intends to approve such proposal
and authorize the City Manager to sign the Offer to Buy Real Estate and
Acceptance; and direct publication of notice of said intent;
6)Approve and direct publication of a notice to advise any other person of the
opportunity to compete for purchase of the property for development on the
terms and conditions set forth herein;
7)Declare that in the event another qualified proposal is timely submitted and
accepted, another and future notice will be published on the intent of the City
to enter into the resulting contract, as required by law
Whereas, the City Council believes it is in the best interest of the City and the Plan
to act as expeditiously as possible to offer this property for development as set forth herein;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the following described property shall be offered for development
in accordance with the terms and conditions contained in this Resolution, to wit:
Cypress Street, Wall Street, Washington Street except that part from Market
Street to Cypress Street and alleys located between the NE'LY line of Sixth
Street and the NW'LY line of Market Street and the SE'LY right of way line of the
Canadian National Illinois Central Railroad in the City of Dubuque, Dubuque
County, Iowa
Lots 15, 16, 17, 18, 19, 20, 21, and 22; and,
That part of lots 1, 2, 3, 4, 5, 6, 7, 8, 12, 13, and 14, lying southerly
Of a line which is parallel to and 50 feet southerly from the
Centedine of the Illinois Central Gulf Railroad Company's main
Tract, as now located; all in Block 18,
In Dubuque Harbor Improvement Company's Addition, in the City of
Dubuque, Iowa, according to the recorded Plat thereof.
Lot lA of vacated alley in Block 18 of Dubuque Harbor Improvement
Company's Addition from Market Square to the I.C.R.R.R.O.W.
In the City of Dubuque, Iowa, according to the recorded Plats thereof.
Lots 31, 32, 33, 34, 35, and 36, in Block 21,
Lots 1 to 38, both inclusive, in Block 27, and
Lots 31, 33, 34, and 35, in Block 28,
All in Dubuque Harbor Improvement Co.'s Addition,
In the City of Dubuque, Iowa, according to the
Recorded plat of said Addition.
Lots 1, 33, 34, 35, 36, in Block 20;
Lots numbered 3 to 19, inclusive, in Block 21;
That part of lots 2, 3, 4, 31 and 32, in Block 20, and,
That part of lots 8 and 27, in Block 28, lying eastedy of the
Dubuque & Dunleith Bridge Company's fight of way;
Lots 1, 2, 3, 4, 5, 6, 7, 28, 29, 30, and 32, in Block 28;
All in Dubuque Harbor Improvement Company's Addition, in the
City of Dubuque, Iowa, according to the respective recorded
Plats thereof.
Section 2. That the Fair Market Value of the property is hereby established as $1,641,036.00.
Section 3.That it is hereby determined that in order to qualify for consideration
for selection each person must submit a proposal which meets these minimum
requirements:
a)Contains an agreement to acquire the property at not less than the Fair
Market Value for use Jrt accordance withJthePlan;
b)Is intended for the redevelopment of the property for use by expansion of an
existing business or establishing a new business in conformance with the
Plan;
c)Sets out or provides to the satisfaction of the City Council the proposed
developer's experience in working with other development projects and with
construction;
d)Sets out or provides to the satisfaction of the City Council the
experience of the principals and key staff who are directly engaged in
performance of contract obligations in carrying out projects of similar scale
and character; and
e)Meets, at a minimum, the conditions of the Offer to Buy Real Estate and
Acceptance submitted by the Developer.
Section 4. That the Offer to Buy Real Estate and Acceptance by and between the
City and the Developer be and is hereby approved as to form for the purposes hereinafter
stated.
Section 5. That for the purpose of defining the offedng of the property for
development, said Offer to Buy Real Estate and Acceptance shall be deemed to be
illustrative of the terms acceptable to the City with respect to:
a)Purchase price;
b)Conveyance of property;
c)City participation;
d)Conditions;
e)General terms and provisions
Section 6. That the Offer to Buy Real Estate and Acceptance submitted by the
Developer satisfies the requirements of the offering and, in the event that no other qualified
proposals are timely submitted, that the City Council intends to accept and approve the
Offer to Buy Real Estate and Acceptance.
Section 7. That it is hereby determined that the Developer possesses the
qualifications, financial resources and legal ability necessary to acquire and develop the
property in the manner proposed by this offering in accordance with the Plan.
Section 8. That it is hereby determined that the disposition price for the property
offered to the Developer shall be in the amount of the Fair Market Value as established by
the City Council for uses in accordance with the Plan.
Section 9.That the City Clerk shall receive and retain for public examination the
attached Offer to Buy Real Estate and Acceptance submitted by the Developer and, in the
event no other qualified proposals are timely submitted, shall resubmit the same to the City
Council for final approval and execution upon expiration of the notice hereinafter
prescribed.
Section 10. That the action of the City Council be considered to be and does
hereby constitute notice to all concerned of the intention of this Council, in the event that
no other qualified proposals are timely submitted, to accept the proposal of the Developer
to acquire and develop the property and to approve the Offer to Buy Real Estate and
Acceptance by and between City and Developer.
Section 11. That the official notice of this offering and of the intent of the City, in
the event no other qualified proposals are timely submitted, to approve the Offer to Buy
Real Estate and Acceptance, shall be a true copy of this Resolution, but without the
attachments referred to herein.
Section 12. That the City Clerk is authorized and directed to secure immediate
publication of said official notice in the Telegraph Herald, a newspaper having a general
4
circulation in the community, by publication of the text of this Resolution without
attachments on or before the 24th day of October, 2002.
Section 13. That written proposals for the sale and development of the property
will be received by the City Clerk at or before 10:00 a.m., November 22, 2002 in the Office
of the City Clerk, located on the first floor at City Hall, Dubuque, Iowa 52001. Each
proposal will be opened at the hour of 10:00 a.m. in City Hall, Dubuque, Iowa on November
22, 2002. Said proposals will then be presented to the City Council at 6:30 p.m.,
November 25, 2002, at a meeting to be held in the Auditorium of the Carnegie-Stout Public
Library, Dubuque, Iowa.
Section 14. That such offering shall be in substantial conformance with the
provisions of Section 403.8, Code of Iowa, requiring reasonable competitive bidding
procedures as are hereby prescribed, which method is hereby determined to be the
appropriate method for making the Property available for development.
Section 15. That the required documents for the submission of a proposal shall be
in substantial conformity with the previsions of this Resolution.
Section 16. That the City Clerk is hereby nominated and appointed as the agent of
the City of Dubuque, Iowa to receive proposals for the sale of the property at the date and
according to the procedure hereinabove specified for receipt of such proposals and to
proceed at such time to formally acknowledge receipt of each of such proposals by noting
the receipt of same in the Minutes of the Council; that the City Manager is hereby
authorized and directed to make preliminary analysis of each such proposal for compliance
with the minimum requirements established by this Council hereinabove. For each
proposal thatsatisfies theserequirements,the City Council shall judge the strength of the
proposal by the competitive criteria established hereinabove. The City Council shall then
make the final evaluation and selection of the proposals.
Section 17. That in the event another qualified proposal is timely submitted and
accepted by the City, another and further notice shall be published of the intent of the City
of Dubuque, Iowa, to enter into the resulting contract, as required by law.
Passed, approved and adopted this 21st day of October, 2002
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
David L. Clemens ISSA # ~000000880
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO CITY OF DUBUQUE, IOWA , Sellem:
1. REAL ESTATE DESCRIPTION. The Buyem offer to buy real estate in Dubuque County, Iowa County,
Iowa, described as follows: 1. 390 k'~
4.902 acres which is indichted in green on the attached map and 2-.08-7-acres of streets and alleys indicated in yellow on the
attached Map. Excluded on the attached map would be 176 acres, indicated in orange on the attached map and also
excluded would be Market Square which consists of 1.155 acres indicated i~ blue on the attached map.
SEE ATTACHED LEGAL DESCRIPTION
with any easements and appurtenant servient estates, but subject to the following: a. any zomng and other ordinances; b. any covenants of
record; c. any easements of record for public utilities roads and highways; and d. (consider: liens, mineral rights; other easements; interests
of othem.)
designated the Real Estate: previded Buyers, on possession, are permitted to malge the following use of the Real Estate:
2. PRICE. The purchase price shall be $ 1,641,036.00 , payable at Dubuque County, Iowa,
as follows:
$1,000.00 down, receipt which is hereby acknowledged by the City of Dubuque; An additional $1,049,000.00 due at the
time of closing and the balance of $591,036 due on July 1, 2003.
3. REAL ESTATE TAXES. Sellers shall pay
Fiscal Year 2002-2003 real estate taxes and real estate taxes for fiscal year 2003-2004 due and payable in the fiscal year
commencing July 1,2004 prorated up to the date of possession.
and any unpaid real estate taxes payable in prior years. Buyers shait pay all subsequent real estate taxes. Any proration of real estate taxes
on the Real Estate shall be based upon such taxes for the year currently payable unless me par~ies state otherwise
4. SPECIAL ASSESSMENTS.
a. Sellers shall pay all special assessments which are a lien on the Real Estate as of the date of acceptance of this offer
b. IF a. IS STRICKEN, then Sellers shall pay all installments of special assessments which are a lien on the Real Estate and, if not paid,
would become deitnquent during the calendar year this offer is accepted, and all prior installments thereof.
c. AIl other special assessments shall be paid by Buyers.
5. RISK OF LOSS AND INSURANCE. Risk of loss pdor to Seller's delivery of possession of the Real Estate to Buyem shall be as follows:
a. All risk of loss shall remain with Sellers until possession of the Real Estate shall be delivered to Buyers.
b. IF a. IS STRICKEN, Sellers shall maintain $ of fire windstorm aha extended coverage insurance or the Real
Estate until possession is given to Buyers and sha~l promptly secure endorsements to the appropriate insurance policies naming Buyers as
additional insureds as their interests may appear. Risk of loss from such insured hazards shall be on Buyers after Sellem have performed
under this paragraph and notified Buyem of sbch performance. Buyers, if they desire, may obtain additional insurance to cover such risk.
6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is
delivered to .Buyers, provided, however, if 5.a. is stricken and there is loss or destruction of all or any part of the Real Estate from muses
covered by the insurance maintained by Sellers, Buyers agree to accept such damaged or destroyed Real Estate together with such
insurance proceeds in lieu of the Real Estate in its present condition and Sellers shall not be required to repair or replace same.
7. POSSESSION. If Buyers timely perform all obligafions, possession of the Real Estate shall be delivered to Buyers on
November 1, 2003 , with any adjustments of rent, insurance, and interest to be made as of the date of
transfer°fp°ssessi°n.***tlowever, tile Clos±ncgr ±S scheduled for Deeern~e:r 2, 2002.
8. FIXTURES. All property that integrally belongs to or is part of the Real Estate, whether attached or detached, such as light fixtures,
shades, rods, blinds, awnings, windows, storm doom, screens, plumbing fixtures, water heaters, water softeners, automatic heating
equipment, air conditioning equipment, wall to wait carpeting, built-in items and electrical service cable, outside television towers and
antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale except: (consider: rental items.)
Not applicable, Raw land.
9. USE OF PURCHASE PRICE. At time of settlement, funds of the purchase pnce may be used to pay taxes and other liens and to
acquire outstanding interests, if any, of others
10. ABSTRACT AND TITLE. Sellem, at their expense, shall promptly obtain an abstract of title to lhe Real Estate continued througi~ the
date of acceptance of this offer, and deliver t to Buyers for examination. It shall show memhantab~e titla in Sellers in conformity with this
agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyers when the
purchase prise is paid in full. Sellers shall pay the costs of any additional abstracting and title work due to any act or omission of Sellers,
including transfers by or the death of Sellers or their assignees.
11. DEED. Upon payment of the purchase prise, Sellers shall convey the Real Estate ro Buyers or their assignees, Dy
Warranty deed, free and clear of all liens, restrictions, and encumbrances exceur as provided in 1. a. through
1. d. Any general warranties of title shall extend only to the time of acceptance of this offer, with special warranties as to acrs of Sellers
continuing up to time of delivery of the deed.
12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If Sellers, immediately preceding acceptance of this offer, hold title to the
Real Estate in ioint tenancy with full fight of survivorship, and the joint tenancy is not later destroyed by operation of !aw or by acts of the
Sellers. then the proceeds of this sale. and any continuing or recaptured fights of Sellers in the Real Estate. shall belong to Sellers as joint
tenants with full dghts of survivorship and not as tenants in common: and Buyers, in the event of the death of e~ther Seller. agree to pay any
balance of the price due Sellers under this contract to the surviving Seller and to accept a deed from the surviving Seller consistent with
paragraph I l
13. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a titleholder immediately preceding acceptance of this offer, executes this
contract only for the purpose of relinquishing all rights of dower, homestead and distributive shares or in comoliance with Section 561.13 of
the Iowa Code and agrees to execute the deed or real estate contract for this purpose.
14. TIME IS OF THE ESSENCE. 13me is of the essence in this contract.
15. REMEDIES OF THE PARTIES
a. If Buyers fail to timely perform this contract Sellers may forfeit it as provided in the Iowa Code, and all payments made shall be
forfeited or, at SelleCs option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of such
failure (dufing which thidy days such failure is not corrected) Sellers may declare the entire balance immediately due and payable.
Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver.
b. if Sellers fail to timely pedorm this contract. Buyers have the right to have all payments made returned to them.
c. Buyers and Sellers 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.
16. STATEMENT AS TO LIENS. ft Buyers intend to assume or take subject to a lien an the Real Estate, Sellers shall furnish Buyers with
a written statement from the holder of such Ilar., showing the correct balance due.
17. SUBSEQUENT CONTRACT. Any real estate contract executed in performance of this contract shait be on a form of the Iowa State
Bar Association.
18. APPROVAL OF COURT. If the sale of the Real Estate ~s subject to Court approval, the fiductary sha!r piomp[ly submit this contract roi
such approval. If this contract is not so approved, it shall be void.
19. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to ace bind the successors in interest of the
parties
20. CONSTRUCTION, Words anc~ phrases shall be construed as in the singular or plural number and as masculine, feminine or neuter
gender, according to the context,
21. TIME FOR ACCEPTANCE If this offer is not accepted by Sellers on or before
it shall become void and all payments shall be repaid to the Buyers.
22. OTHER PROVISIONS. Attach Addendum.
See attached.
Dated:
DUBUQUE INITIATIVES
By: ~U~. ~.~, .~.~
Buyer Kathr~%l~E. Krieg, PrUdent
Buyer
THIS OFFERISACCEPTED
CITY OF DUBUQUE, IOWA
By: Seller
Spouse
Spouse
Seller
ADDENDUM
A. Contingent upon an acceptable Phase II test as determined by Buyer.
B. Contingent upon Seller executing an acceptable indemnification agreement
on any environmental issue prior to the possession date of November 1,2003.
C. Seller will take necessary steps to vacate all streets, except Market Street,
located within the lots being purchased and deed them to Buyer by November 1, 2003.
D. By November 1,2003, all buildings will be removed by Seller, site cleaned
and seeded.
E. Seller shall not assess the Buyer for any street improvements te Market
Street to the extent necessary to construct a roadway. In the event sale by Buyer
subsequent to the construction of the roadway, no assessment will be made against the
property for the prior construction of the roadway. Once the road is constructed, any
improvements to Market Street will be assessable.
F. This Offer is contingent upon Seller obtaining title of the property by
December 1, 2002, provided that Seller shall have until July 1, 2003 to obtain title to
Lots 20 through 30 in Block 21.
G. Seller shall have an option to purchase the Real Estate from Buyer for a
period of five (5) years from December 1,2002. The option price for the purchase shall
be $1,641.036.00 plus Buyer's holding costs and interest at the Federal Fund Rate
Buyer would have earned on its cash investments during the period of ownership of the
Real Estate by Buyer. This option shall be exercised by Seller giving 30 days advance
wdtten notice to Buyer, with the option purchase pdce to be paid in cash at closing.
H In the event of sale prior to the five years, Buyer will receive the entire
proceeds for such sale or sales until Buyer has received the sum referred to in
paragraph G above. Any sale proceeds thereafter remaining shall be paid by Buyer to
the Seller in consideration for release of Seller's option. Buyer understands the Seller's
option as set out in paragraph G and therefore the Buyer agrees to participate with the
Seller in a joint marketing with other city projects as shown on the City's master plan
without cost to the Buyer.
I. n the event that Seller is unable to obtain title to Lots 20 through 30 in Block
21, by July 1, 2003, the parties agree to negotiate a reduced purchase price based
upon reduced acreage. In the event the parties are not able to agree on a reduce
purchase price, Seller shall be required to exercise its option as referred to in
Paragraph G above. Upon negotiation of a reduce purchase pnce, Seller shall
immediately pay to Buyer the difference between the reduced purchase pnce and the
pdce set forth in Paragraph 2 of this offer.
Legal Description of the Real Estate
Cypress Street, Wall Street, Washington Street except that part from Market
Street to Cypress Street and alleys located between the NE'LY line of Sixth
Street and the NVV'LY line of Market Street and the SE'LY right of way line of the
Canadian National Illinois Central Railroad in the City of Dubuque, Dubuque
County, Iowa
Lots 15, 16, 17, 18, 19, 20, 21, and 22; and,
That part of lots 1, 2, 3, 4, 5, 6, 7, 8. 12, 13, and 14, lying southerly
Of a line which is parallel to and 50 feet southerly from the
Centerline of the Illinois Central Gulf Railroad Company's main
Tract, as now located; all in Block 18,
In Dubuque Harbor Improvement Company's Addition, in the City of
Dubuque. Iowa, according to the recorded Plat thereof.
Lot lA of vacated alley in Block 18 of Dubuque Harbor Improvement
Company's Addition from Market Square to the I.C.R.R.R.O.W.
In the City of Dubuque, Iowa, according to the recorded Plats thereof.
Lots 31, 32, 33, 34, 35, and 36, in Block 21
Lots 1 to 38, both inclusive, in Block 27, and
Lots 31, 33, 34, and 35, in Block 28,
All in Dubuque Harbor Improvement Co.'s Addition,
In the City of Dubuque, Iowa, according to the
Recorded plat of said Addition.
Lots 1, 33, 34, 35, 36, in Block 20;
Lots numbered 3 to 19, inclusive, ~n Block 21;
That part of lots 2, 3, 4, 31 and 32, in Block 20, and,
That part of lots 8 and 27, in Block 28, lying easterly of the
Dubuque & Dunleith Bddge Company's right of way;
Lots 1, 2, 3, 4, 5, 6, 7, 28, 29, 30, and 32, in Block 28;
All in Dubuque Harbor Improvement Company's Addition, in the
City of Dubuque, Iowa, according to the respective recorded
Plats thereof.