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Old Mill Rd Purchase PropertiesMEMORANDUM December 16, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Old Mill Road Property Acquisition Agenda Item - Action #9 Attached is additional information on this agenda item from Planning Services Manager Laura Carstens. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager MEMORANDUM December 16, 2002 TO: Michael Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager SUBJECT: Flood Damaged Properties on Old Mill Road The City Council has received an action item scheduled for December 16, 2002 on the acquisition of six flood damaged properties on Old Mill Road. I am providing you with additional background information for this meeting, should questions arise about the three substantially damaged homes and flood plain regulations. The three homes were built as follows: Address Year Built 1620 Old Mill Road 1955 1695 Old Mill Road 1920 1699 Old Mill Road 1936 The construction of all three homes pre-dates the creation of the National Flood Insurance Program in 1968. The City adopted flood plain regulations as an overlay zone in the Zoning Ordinance in 1990. Previously, the State of Iowa administered flood plain regulations. Under the City's flood hazard overlay zone regulations, the property owners must elevate the structures out of the flood plain if they are not purchased by the City at this time. This elevation will be substantial due to the level of flooding these homes incurred. This memo is provided for your information. CCMike Koch, Public Works Director Gus Psihoyos, Assistant City Engineer December 12, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Request for City Council Authorization for the Purchase of Three Flood Damaged Properties on Old Mill Road On September 16, 2002, the City Council authorized submittal of an application for financial assistance from the Iowa Emergency Management Division and the Federal Emergency Management Agency to purchase six properties along Old Mill Road that had been substantially damaged in past storm events. Official notification is expected in the next 30 days indicating that the City will receive 75%, or approximately $260,000, toward the purchase of three of the properties at 1620, 1695 and 1699 Old Mill Road. Ten percent of the matching funds will be provided by the State of Iowa, and the remaining 15%, or $46,000, will come from City of Dubuque storm sewer construction funds. These properties were included in this program at the request of the homeowners. Public Works Director Mike Koch is requesting approval to purchase these properties upon receipt of the grant funds. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Michael A. Koch, Public Works Director MEMORANDUM December 10, 2002 TO:Michael C. Van Milligen, City Manager FROM:Michael A. Koch, Public Works Director SUBJECT:Request for City Council Authorization for the Purchase of Three (3) Flood Damaged Properties on Old Mill Road INTRODUCTION The purpose of this memorandum is to request that the City Council authorize the purchase of 1620 Old Mill Road, 1695 Old Mill Road, and 1699 Old Mill Road subject the City of Dubuque's receipt of funds from the Iowa Emergency Management Division and the Federal Emergency Management Agency under the Hazard Mitigation Grant Program. The three homes were substantially damaged by the rainstorm on June 4, 2002. BACKGROUND The Federal Emergency Management Agency (FEMA) administers the Hazard Mitigation Grant Program (HMGP) that provides funding to States and local governments to implement long-term hazard mitigation measures after a Presidential declared disaster. This program authorizes the voluntary purchase and demolition or relocation of buildings subjected to repeated flood damage and the converting of such property to open space. Located in the 100-year floodplain at the confluence of the Catfish Creek and the Middle Fork of Catfish Creek, floodwaters have repeatedly damaged the homes located at 1620, 1695, and 1699 Old Mill Road. The homes experienced some flood damage in 1993, significant flood damage in 1999, and major damage in June of 2002. Kyle Kritz, acting for the City of Dubuque's designated floodplain manager, Laura Carstens, determined that the three homes were substantially damaged which means that the damage to the structure exceeds fifty percent (50%) of the structures value. Individual property owners are not able to apply for these program funds. The owners of the three properties have requested that the City pursue funds to purchase their properties. The proposed purchase by the City will result in removal of the structures and the creation of open space. The City applied for and received funds under this program to purchase a home that was located on Pennsylvania Avenue just west of John F. Kennedy Road, following the Presidential Disaster Declaration in 1999. DISCUSSION On September 16, 2002, by resolution the City Council authorized the City Manager to submit an application for financial assistance under the HMGP to purchase six (6) properties and agreed to provide $99,383.00 of local funds to be used as matching funds for the HMGP. The 899,383.00 is fifteen percent (15%) of the estimated $662,554.00 required to purchase the six properties included in the grant application. Following the direction of the City Council, an application was submitted for funding to purchase the six properties: 1580, 1620, 1650, 1695, 1699, and 1711 Old Mill Road. According to the EMD, fourteen (14) applications, one being the City of Dubuque's application, have been selected by the state for the development of the full HMGP application. These fourteen (14) applications request approximately $12.2 million in grant funding. The current estimate of available funds under the HGMP for the 2002 Federal Disaster Declaration (DR-1420) is $1,700,000, highlighting the competitive nature of the program. The process EMD uses when reviewing applications includes distinguishing between properties that are substantially damaged and those that are not. Substantially damaged properties are of the highest priority under the HMGP and will be funded before other projects. Official notification is expected in the next thirty days indicating that the HMGP will provide seventy five percent (75%), or approximately $260,000 toward the purchase of the three substantially damaged properties. The fifteen percent (15%) local match is estimated to be $46,000 to purchase the three substantially damaged properties. The remaining ten percent (10%) is provided by the State of Iowa. According to Mark Schneider, Community Development Director for the East Central Intergovernmental Association, who is working with City staff and EMD for this project, the property purchases could close in January or February of 2003. BUDGET IMPACT The current request for $46,000.00 is the fifteen percent (15%) local match required under the HMGP to purchase the three substantially damaged homes. The breakdown of the costs is shown in Table 1. Property 1620 Old Mill Rd. 1695 Old Mill Rd. 1699 Old Mill Rd. Photo # 1 2 3 Owner Timmons McDermott Laufenberg Fair Market Value $113,399 $48,521 $61,875 Demolition Est. $10,000 $10,000 $10,000 Relocation (Homesowners) $10,000 $10,000 $10,000 Moving Expenses $1,000 $1,000 $1,000 Legal/Closing Costs $1,000 $1,000 $1,000 Sub-Total $135,399 $70,521 $83,875 Administration $5,000 $5,000 $5,000 Total $139,399 $75,521 I $88,875 Grand Total $304,795 Required 15% Match $45,719 Table 1. Cost breakdown to purchase the three substantially damaged homes on Old Mill Road. Photo #1. 1620 Old Mill Road taken June 4, 2002 Photo #3. 1595 Old Mill Road taken May 17, 1999 Photo #4. 1599 Old Mill Road taken June 5, 2002 In November, at the City Council's direction, City staff requested Community Development Block Grant Funds to be used as the local match, however that funding was not available for this project. Storm Sewer Construction Funds have been made available through the Fiscal Year 2004 Capital Improvement Project budget. ACTION REQUESTED I respectfully request that the City Council approve the $46,000 allocation of storm sewer construction funds as the local match and authorize the purchase the three substantially damaged properties: 1620 Old Mill Road, 1695 Old Mill Road, and 1699 Old Mill Road. Prepared by Deron Muehring CC: Michael Koch, Public Works Director Pauline Joyce, Administrative Services Manager Gus Psihoyos, Assistant City Engineer David Harris, Director of Housing & Community Development Laura Carstens, Planning Services Manager (City of Dubuque Floodplain Mgr.) Kyle Kritz, Associate Planner Mark Schneider, Community Development Director (ECIA)