Upper Bee Branch Creek Railroad Culverts Project, Property Acquisition_B&M Properties LLC Copyrighted
October 15, 2018
City of Dubuque Consent Items # 20.
ITEM TITLE: Upper Bee Branch Creek Railroad Culverts Project
PropertyAcquisition (easements)from B&M Properties
and Storage, LLC
SUMMARY: City Manager recommending approval to make the final
offer for permanent and temporary easements through
certain real property owned by B&M Properties & Storage,
LAG, at 525 E. 19th Street, for the purpose of constructing,
operating, and maintaining the Upper Bee Branch Creek
Railroad Culverts, a stormwater management project.
RESOLUTION Authorizing the City Manager to make the
final offer for the acquisition of easements through certain
real property owned by B&M Properties & Storage, LLC in
the City of Dubuque, lowa
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Upper Bee Branch Culverfs Project-Properly Staff Memo
Acquisition from B&M Properties-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Upper Bee Branch Creek Railroad Culverts Project, Property Acquisition
(easements), B&M Properties & Storage, LLC
CIP 2642769, Project No. 1X0004
DATE: October 11 , 2018
City Engineer Gus Psihoyos is recommending approval to make the final offer for
permanent and temporary easements through certain real property owned by B&M
Properties & Storage, LLC, at 525 E. 19�h Street, for the purpose of constructing,
operating, and maintaining the Upper Bee Branch Creek Railroad Culverts, a
stormwater management project.
The final offer would be $45,000. If the process proceeds to a Compensation
Commission hearing, the City will pay the value set by the Compensation Commission.
Taking the step to establish the date of the Compensation Commission hearing does
not prevent the City from continuing to try and negotiate terms with the owner of the
property.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: October 10, 2018
SUBJECT: Upper Bee Branch Creek Railroad Culverts Project, Property Acquisition
(easements), B&M Properties & Storage, LLC [CIP 2642769, Project No.
1 X0004]
INTRODUCTION
The purpose of this memorandum is to request approval to make the final offer for
permanent and temporary easements (the Easements) through certain real property
owned by B&M Properties & Storage, LLC, at 525 E. 19t" Street for the purpose of
constructing, operating, and maintaining the Upper Bee Branch Creek Railroad
Culverts, a stormwater management project (Project).
BACKGROUND
In December of 2001 , the City Council formally adopted the Drainage Basin Master Plan
prepared by HDR Engineering. Based on the study, approximately 1 ,150 homes and
businesses in the Bee Branch watershed are at risk of flood damage.
In December of 2004, the City Council established the alignment for the Bee Branch
Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington
Streets, and established a building permit moratorium for the properties based on the
alignment.
In September of 2013, the City Council adopted Resolution 291-13 amending the
alignment of the Bee Branch Creek Restoration Project in the vicinity of GarField
Avenue. The amended alignment passes through 430 GarField Avenue.
In August of 2018, the City Council passed Resolution 228-18 establishing the fair
market value of the Easements through the B&M Properties & Storage, LLC Property at
$35,000.00. It also authorized the City Manager to commence negotiations, and if
necessary, commence eminent domain proceedings to acquire the easement.
DISCUSSION
The City has been negotiating the terms of a potential purchase agreement with B&M
Properties & Storage, LLC (Owner) in order to acquire a temporary and a permanent
easement through their property at 525 E. 19t" Street. The City's initial offer outlined that
the City would pay $35,000.00, the appraised value and the value that the City Council
established as the Fair Market Value for the Easements. The Owner countered with an
asking price of $70,000.00 without any justification or documentation as to how they
arrived at that figure. In an attempt to bring negotiations to a close and potentially avoid
proceeding down the path of acquiring the easements through the eminent domain/
condemnation process, the City proposed a final offer of$45,000.00 for the easements.
In order to proceed with the bidding and construction of the Upper Bee Branch Creek
Railroad Culverts Project so that the improvements can be completed within the
timeframe dictated by the federal funding source, the City must proceed with the
acquisition of the Easements by commencing the eminent domain proceedings.
The next step in the eminent domain/condemnation process is to file an application in
the Sheriffs Office who will in turn set the date to convene a Compensation
Commission hearing. On that date, the Compensation Commission will establish the
value of the easements and the City will obtain the right to access the easements.
Taking the step to establish the date a hearing does not prevent the City from
continuing to try and negotiate terms with the Owner that are acceptable to both parties.
RECOMMENDATION
I recommend approval to make the final offer for permanent and temporary easements
through certain real property owned by B&M Properties & Storage, LLC (Owner), at 525
E. 19�h Street for the purpose of constructing, operating, and maintaining the Upper Bee
Branch Creek Railroad Culverts Project.
BUDGETIMPACT
If the Owner accepts the final offer, the City will pay $45,000.00 for the Easements. If
the process proceeds to a Compensation Commission hearing, the City will pay the
value set by the Compensation Commission.
This acquisition of the easements will be funded through the FY19 appropriation in the
amount of$5,729,042 for the "Railroad Culverts (Phase 4 & 7 of Bee Branch Watershed
Flood Mitigation Project)," CIP No's 2642769, 7202769, and 3402690.
REQUESTED ACTION
I respectfully request adoption of the attached resolution establishing the City's final
offer the acquisition of permanent and temporary easements property owned by B&M
Properties & Storage, LLC (Owner), at 525 E. 19�h Street for the purpose of
constructing, operating, and maintaining the Upper Bee Branch Creek Railroad
Culverts, a stormwater management project (Project).
Attach.
Prepared by Deron Muehring
Cc:
Crenna Brumwell, City Attorney
Barry Lindahl, Senior Corporation Counsel
Steve Brown, Project Manager
Deron Muehring, Civil Engineer
2
RESOLUTION NO. 308-18
AUTHORIZING THE CITY MANAGER TO MAKE THE FINAL OFFER FOR THE
ACQUISITION OF EASEMENTS THROUGH CERTAIN REAL PROPERTY OWNED
BY B&M PROPERTIES & STORAGE, LLC IN THE CITY OF DUBUQUE, IOWA
Whereas, the City of Dubuque (City) intends to acquire permanent and
temporary easements (the Easements) through certain real property owned by B&M
Properties & Storage, LLC (Owner), at 525 E. 19th Street for the purpose of
constructing, operating, and maintaining the Bee Branch Railroad Culverts, a
stormwater management project; and
Whereas, City has caused an appraisal of the Easements to be made and the
appraised value of the easements is $35,000.00; and
Whereas, in Resolution No. 229-18, the City Council established the fair market
value of the Easements as $35,000.00, authorized the City Manager 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 therein, and authorized the City Manager to commence proceedings
for the acquisition of the Property by eminent domain should negotiations fail; and
Whereas, Iowa law requires that City must make a good faith effort to negotiate
with the Owner to purchase the Easements before proceeding with condemnation; and
Whereas, City has been unable to reach an agreement with the Owner for the
purchase of the Easements; and
Whereas, City intends to commence eminent domain proceedings to acquire the
Easements; and
Whereas, the City Manager has requested authority to make a final offer to the
Owner for the purchase of the Easements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Sectionl. The City Manager is hereby authorized to make a final offer to the
Owner for the purchase of the Easements in the amount of $45,000.00.
Section 2. If the Owner of the Property does not accept the City's Final Offer on
or before October 15, 2018, the City Manager is directed to commence eminent domain
proceedings to acquire the Easements.
Passed, approved and adopted this 15th day of October 20
Attest:
Kevin S irnstahl, City Clerk
01527768-1\10422-183
Roy D. Buol, Mayor