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)