40 Main, LLC_Vacate of Jones StreetTHE CITY OF
DLTB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Vacate of Jones Street
DATE: September 1, 2009
Dubuque
A~-Am~IcaCiry
.~~.~
2007
In response to a request from 40 Main, LLC to vacate a portion of Jones Street and
adjacent alley north of Jones behind 42, 44 and 48 Main Street, Economic Development
Director Dave Heiar states that the City has no plans for the utilization of the area to be
vacated, except for reserving the utility easements as noted. Economic Development
Director Dave Heiar recommends approval of the request to vacate for a purchase price
of $157,582, plus surveying, platting, publication and filing fees, and recommends that a
public hearing be set for September 21, 2009, on the disposal of this property.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CTTY OF
DL7B E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
DATE: September 2, 2009
SUBJECT: Vacate of Jones Street
Dubuque
AMmer~aCihl
2007
INTRODUCTION
This is in response to a request from 40 Main, LLC for the vacating of a portion of Jones
Street and adjacent alley north of Jones behind 42, 44, and 48 Main Street. This
additional land is needed to accommodate the anticipated parking needs of this
rehabilitation project.
DISCUSSION
In January 2009, the City Council approved a Development Agreement with 40 Main,
LLC for the revitalization of a building located at 40-42 Main Street in downtown
Dubuque (the former Higley Chemical Building).
The project to rehabilitate the 40 Main property involves significant restoration work.
The 30,000 square foot building will include 18 market-rate apartments and 7,800
square feet of commercial space. The work will be done in accordance with the U.S.
Secretary of the Interior's standard as Federal and State Historic Rehabilitation Tax
Credits will be used for the project. The Developer has requested that the adjoining
right-of-way be vacated and sold.
The building itself consumes most of the existing site. The City owns right-of-way on
the North, East and West of the property that is not needed for public right-of-way
purposes. Over the past several months, City staff and the developers have had
numerous negotiating sessions to discuss the potential of vacating and selling the
unnecessary right-of-way to accommodate the parking needs of this rehabilitated
building.
The area to be vacated is divided into four (4) lots. Perpetual easement rights will be
reserved on the lots for maintenance of the existing sanitary sewer, watermain utilities,
force main, and other utilities. The abutting property owners have signed statements
indicating their support of this proposal (see attached letters). The Developer is also
responsible for surveying, platting, publication and filing fees.
The property has been valued based on previous appraisals. In 2006, appraisals for
this property were done by Felderman Appraisals and Kane Appraisal Services. The
various right-of-way parcels ranged from $11.10 per square foot to $13.00 per square
foot. These values were discounted by 50% due to the City's retention of easements
over the property.
In a separate memorandum, I have submitted a Real Estate Contract for Council
consideration. The major provisions of the proposal sale of right-of-way are as follows:
1. The purchase price for the surrounding parcels (see attached diagram) will be
$157,583 subject to a public hearing
2. $1,000 down payment due at signing
3. 0% interest
4. Balance due on or before 5 years of signing the agreement
5. The sale of the Northern portion of the property is contingent upon developers
closing on property located at 44-48 Main Street
6. The sale of a portion of Jones Street is contingent upon consent from adjacent
land owners
7. City will retain utility easements over a portion of the land that is acquired
8. The City will provide screening between the acquired property and Hwy 151
9. Developer will construct parking areas per City guidelines
10. Developer shall apply for revocable licenses for all right-of-way encroachments
on the real estate
11. Buyer agrees to construct a sidewalk at the North end of the building and along
the South end of Main Street cul-de-sac so that it connects with the existing
public sidewalk without crossing private property.
RECOMMENDATION
The City has no plans for the utilization of the areas to be vacated, except for reserving
the utility easements as noted.
would recommend that a public hearing be set for the 21St day of September, 2009, for
the vacation of Lot 1 of 10A, Lot 1 of 12A and Lot 1 of 17A all in the West Half of Block
1 and Lot 1 of 1A in the West Half of Block 10 in Dubuque Harbor Company's Addition
as shown on the attached plat.
ACTION TO BE TAKEN
The action step is for the City Council to approve the attached resolution setting a public
hearing on the disposal of the property to 40 Main, LLC.
Prepared by Ron Turner, PLS
Attachments
20090902 Vacate of Jones Street Memo
Prepared/Return to: David Heiar, Economic Development, 50 W. 13th Street, Dubuque, IA 52001 (563) 589-4393
RESOLUTION NO. 322-09
RESOLUTION OF INTENT TO VACATE LOT 1 OF 10A, LOT 1 OF 12A AND LOT 1 OF 17A
ALL IN THE WEST HALF OF BLOCK 1 AND LOT 1 OF 1A IN THE WEST HALF OF
BLOCK 10 IN DUBUQUE HARBOR COMPANY'S ADDITION IN THE CITY OF DUBUQUE,
DUBUQUE COUNTY, IOWA
Whereas, 40 Main, LLC has requested the vacating and disposal of a portion of Jones
Street and adjacent alleys; and
Whereas, Buesing & Associates has prepared and submitted to the City Council plats
showing the vacated portions of rights-of-way and assigned lot numbers thereto, which
hereinafter shall be known and described as Lot 1 of 10A, Lot 1 of 12A and Lot 1 of 17A all in
the West Half of Block 1 and Lot 1 of 1A in the West Half of Block 10 in Dubuque Harbor
Company's Addition in the City of Dubuque, Dubuque County, Iowa, should be approved.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque intends to vacate Lot 1 of 10A, Lot 1 of 12A and
Lot 1 of 17A all in the West Half of Block 1 and Lot 1 of 1A in the West Half of Block 10 in
Dubuque Harbor Company's Addition in the City of Dubuque, Dubuque County, Iowa.
Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and
a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the
City's intent to vacate the foregoing-described real property, to be held on the 21st day of
September , 2009, at 6:30 o'clock p.m. at the Historic Federal Building, ,
Dubuque, Iowa.
Passed, approved and adopted this 8th
day of September 2009.
;,;
~ ~ Roy D. Buol, Mayor
Attest:
eanne F. Schneider, CMC, City Clerk
Memorandum
SI30/09
RE: Jones Street Parking Area
I, Mike Breitfelder, unders+an~ that 40 Main LLC, is in the process of purchasing Jones
Street and the Jones Street cul-de-sac from the City of Dubuque to use for park~na for
their redevelopment of 40-42 Main Street. v
Let this letter serve as notice of my consent of this particular planned use and purchase.
If the p~an*+~d use would change beyond this ~a*P, we request further discussion.
~/~ ~ . ,,
` ~+
Mike Breitfelder
Arcon, Inc -Arby's
Memorandum
7/23/09
RE: Jones Street Parking Area
I, Dave Kluck, understand that 40 Main LLC, is in the process of purchasing Jones Street
and the Jones Street cul-de-sac from the City of Dubuque to use for parking for their
redevelopment of 40-42 Main Street.
Let this letter serve as notice of my consent of this purchase.
~~~C/
Dave Kluck