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Acquisition of Property at 250 South Main Street_IDOT5NBQTE Dubuque krAmd *ArAftCly 1 I. Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: City Acquisition of Property at 250 South Main Street DATE: January 26, 2010 City Engineer Gus Psihoyos recommends City Council approval of the acquisition of property at 250 South Main Street in the amount of $330,000, and authorization for the Mayor to execute the Offer to Buy and Deferred Payment Plan Agreement between the City and the Iowa Department of Transportation (IDOT) for such property. The City's right to purchase this property was created when Tri -State Industries sold the property to IDOT and relocated to the City -owned Dubuque Industrial Center West. IDOT only needed a small portion of the property for construction of a future Mississippi River Bridge. Currently the IDOT has a commercial lease agreement with ABC Supply Company to use this property. It is the City's intent, in the short-term, to negotiate the terms and conditions of a multi -year lease with ABC Supply Company to continue its use of this property. In the long -term, the City would demolish the existing structure, improving the gateway appearance and creating an opportunity for development of the property. I concur with the recommendation and respectfully request Mayor and City Council approval. Mich el C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer THE CITY OF Dubuque D UB E AN-AmedcaCky Masterpiece on the Mississippi 2007 TO: Michael C. Van Milligen, City Mana r FROM: Gus Psihoyos, City Engineer --� DATE: January 26, 2010 SUBJECT: City Acquisition of Property at 250 South Main Street CIP 3602159 INTRODUCTION This memorandum is to seek City Council concurrence and to authorize the Mayor to execute the Offer to Buy and Deferred Payment Plan agreement for the acquisition of 250 South Main Street from the Iowa Department of Transportation (Iowa DOT). BACKGROUND In 2006 the Iowa DOT purchased the entire property needed for the new bridge associated with the US 20 Bridge across the Mississippi River Project. Since the final design for the new adjacent bridge is completed, the City approached the Iowa DOT regarding the purchase of any excess remnant property for potential redevelopment opportunities. The property at 250 South Main Street, the current location of ABC Supply Company, is available for purchase from the Iowa DOT. RECOMMENDATION The terms of the Iowa DOT Offer to Buy and Deferred Payment Plan are as follows; • Total purchase price: $330,000. • Down payment: $47,143. • Six -year payment plan option, with annual payments of $47,143. Currently, the Iowa DOT has a commercial lease agreement with ABC Supply Company to use this property. It is the City's intent to negotiate the terms and condition of a multi- year lease with ABC Supply Company to continue its use of this property. BUDGETIMPACT The Purchase of Former Tri- States Building Capital Appropriation Project (CIP 3602159) will be utilized to cover the acquisition cost of $330,000. In addition, the purchase cost of this property will be offset by the proposed annual lease agreement between the City and ABC Supply Company. ACTION TO BE TAKEN The City Council is requested to concur with the acquisition of property at 250 South Main Street in the amount of $330,000 and to authorize the Mayor to execute the Offer to Buy and Deferred Payment Plan agreement between the City and the Iowa Department of Transportation (Iowa DOT) for such property. Prepared by: Robert Schiesl, Assistant City Engineer cc: Jenny Larson, Budget Director a. cn ;� ;: s �r� �� �� ,,.a�a. w1� 1 � 'nn_ �'. - t W bi ..: ,� b ,. .... ,. -- ., a �, . � - � \ e :�� Dubuque GIS Mapping Dubuque GIS Mapping F7 Parcels Shaer Dimens. IGeers ions ieA Cannes N Aerial Illob aaY ds 2097 Pnze I of I Nml r'�^ varion systems ORi...l NiVaM -b WMa•-- MMbMOT EMwMC a- aKm• war. M+A V - wEwyiNbrwbrOrr�... EaaP.l .... b„• wbr bl..,rw., .. n•t+awrCaY4b,l•E•a.•sT� -•IY- DO — 4, kll y_ AO mm- O4/n <G o I c c%,7.� F n RxR For N•. So �.��.f / 1? CA A //. Y ? hun: / /www.dboco.omiuvweb2 -0iibi i 'r int. r. thde onktitle- Dubuque +GIS +Mapp... 8272009 IOWA DEPARTMENT Of TRANSPORTATION ACOUISITICN PLAT EXHIBIT "A" COUNTY DUBUQUE STATE CONTROL N0. PRCJECT NC. BRF -20- 9(158)- -38-31 PARCEL NO. 108 SECTION 25 AND 30 TOWNSHIP 89 N RANGE 2E AND 3E ROW —FEE 53,280 SO FT, EASE SO FT EXCESS —FEE _SO FT ACCESS RIGHTS ACQUIRED — STA STA MAIN LINE SIDE ACCESS RIGHTS ACQUIRED — STA STA SIDE ROAD SIDE ACQUIRED FROM �.JiIrr, M. G�.1 AREA BREAKDOWN PARCEL A 9136 SO FT LOT I fEt[n ELT 20 roar so ar A CEL 4 I 4 $•� FT LOT: x TKw E EX EPT ET.r io• am so ET E• r LOT . R.. Ic 72M SO ET H / �_ � /r ♦ Lor I o' a 1LK C rca so ET TOT•L • S1,2E0 50 �' ICELw KG,-. -Mli BLK 1. P a Efc?.ETNO©..J P ONT e rAi � ♦ r 1 r r L D U" %, G NpP i �'• a Lo e 14 � F � —I I I r ♦ 1 — • L I I 1 Ef•fE'If' C r W CORWR LOT A eLK Ic 11 sa EIa� . E R CgfM x LOT A LLK Ic i e r 01 . fi' T{ COWN LOT 1 Of LOT a BLK 11 DATE DRAWN 03/29/05 SCALE 1' ° Prepared by: Cheryl Watson, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515 - 239 -1273 1 . 1s day of . 2011; $47,143.00 2. 1 day of 2012• $47,143.00 3. 15t day of , 2013; $47,143.00 4. 1s day of , 2014; $47,143.00 5. 1 day of , 2015; $47,143.00 6. 1 day of . 2016; $47,142.00 r� Iowa Department of Transportation ‘ Highway Division Office of Right of Way OFFER TO BUY AND DEFERRED PAYMENT PLAN Parcel No. 108 Dub uque County Project No. BRF -20- 9(158) -38 -31 1. THE City of Dubuque, (hereinafter referred to as City) herewith submits an unconditional offer of $330,000.00 , to the Iowa Department of Transportation, (hereinafter referred to as Department) for the purchase of the following land: Parcel "B" , located in Block 14 of Dubuque Harbor Company Addition, in the City of Dubuque, as shown and described in Warranty Deed recorded April 29, 2005 in Document No. 2005- 00006524 in the records of Dubuque County, Iowa . 2. TOTAL PURCHASE PRICE for the premises is $330,000.00 payable at the Highway Division, Iowa Department of Transportation, Office of Cashier, Ames, Iowa 50010, as follows: DOWN PAYMENT OF $47,143.00 shall be made on or before , 2010. The first payment shall be made in the amount of $47,143.00 on the ,2011, which is one (1) year after possession of the property has been granted by the Department. 3. SCHEDULE OF PAYMENT on the unpaid balance: 4. POSSESSION. Subject to payment of the down payment and Seller's acceptance of this offer, the City shall be entitled to possession of said premises on the 1st day of , 2010; and thereafter so long as they shall perform the obligations of this contract. 5. TAXES. Buyer shall pay all subsequent taxes and special assessments, if any, to the County Treasurer, each year before they become delinquent. Buyer shall furnish to Seller evidence of payment of the same. 6. INSURANCE. Buyer agrees to maintain liability insurance for loss or damage to the property or for personal injury arising out of Buyer's possession or use of the property. Buyer shall protect the premises from damage and shall prevent injury to people. Buyer shall indemnify and save the Seller harmless from all loss, claims, and causes of action for all damage to property and injury to persons arising out of Buyer's possession and use of the property. 7. CARE OF PROPERTY. Buyer shall maintain and take good and reasonable care of and shall not injure or destroy property. 8. FORFEITURE. If Buyer (a) fails to make the payments aforesaid, or any part thereof, as same become due; or (b) fails to pay the taxes or special assessments or charges, or any part thereof, levied upon said property, or assessed against it, by any taxing body before any of such items become delinquent; or (c) fails to keep the property insured; or (d) fails to maintain and to take good and reasonable care of or injure, or destroy property; or (e) fails to perform any of the agreements as herein made or required; then Seller, in addition to any and all other legal and equitable remedies which they may have, at their option, may proceed to forfeit and cancel this contract as provided by law (Chapter 656, Iowa). Upon completion of such forfeiture, Buyer shall have no right of reclamation or compensation for money paid, or improvements made; but such payments and /or improvements, if any, shall be retained and kept by Seller as compensation for the use of said property, and /or as liquidated damages for breach of this contract; and upon completion of such forfeiture, such party or parties in possession shall at once peacefully remove therefrom, or failing to do so may be treated as tenarits holding over unlawfully after -1- Prepared by Cheryl Watson, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515- 239 -1273 the expiration of a lease, and may accordingly be ousted and removed as such as provided by law. 9. FORECLOSURE. If Buyer fails, in any one or more of the specified ways to comply with this contract, as in (a), (b), (c), (d), or (e) of paragraph 8 above, Seller may, upon thirty (30) days written notice of intention to accelerate the payment of the entire balance, during thirty days such default or defaults are not removed, declare the entire balance immediately due and payable; and thereafter at the option of the Seller, this contract may then be foreclosed in equity and a receiver may be appointed to take charge of said premises and collect the rent and /or profits thereof to be applied as may be directed by the Court. 10. ATTORNEY'S FEES. In case of any action or in any proceedings in any court to collect any sums payable or secured herein, or to protect the lien or title herein of Seller, or in any other case permitted by law in which attorneys' fees may be collected from Buyer, or imposed upon them, or upon the above described property, Buyer agrees to pay reasonable attorneys' fees. 11. ASSIGNMENTS. Neither Buyer nor his successors in interest, shall assign, sell, transfer, convey, alienate or permit divestiture of any right, title or interest in the premises or any part thereof without first notifying Seller, in writing, of his intention to do so and furnishing Seller a duplicate thereof. In the event all indebtedness, and any obligation secured hereby irrespective of the maturity dates expressed herein, at the option of Seller, shall be a lien upon all proceeds of any such assignment, sale, transfer, conveyance, alienation or divestiture, or so much of which proceeds as required by Seller, shall be applied to the payment of the interest, principal, indebtedness and obligation secured hereby. Seller reserves the right to sell or convey seller's interest in this agreement to a third party. Should seller assign this agreement to a subsequent successor, Buyer shall be responsible for all terms, conditions and effects of this agreement to said successor in interest. 12. SPECIAL AGREEMENTS. a. Buyer agrees to keep the premises free from liens superior to the lien of this contract, or the right of the Seller in the premises. b. Buyer warrants that this sale is not being made to any person not of legal age. c. Buyer warrants that he is not employed by the Iowa Department of Transportation or the Federal Highway Administration and that this contract has not been obtained by any agreement to pay any fee, commission, percentage, gift or any other consideration to any person, and that no employee of the Iowa Department of Transportation or the Federal Highway Administration shall be admitted to any share or part of this purchase or to any benefit to arise therefrom. d. EXECUTED - Original to Seller, to be recorded in County Recorder's Office. CERTIFIED TRUE - Copy to Buyer. f. Upon receipt of the final payment title will be conveyed by State Patent. Abstract of Title will NOT be furnished to the purchaser. Patents will be recorded by the Iowa Department of Transportation in the county where the land is located. The recorded patent will be sent to the buyer. g. Sale is subject to lease #31 -271 -2 h. Direct Access between the above - described parcel of land and highway 20, highway 52, highway 61 or highway 151 will be prohibited. 13. This contract shall apply to and be binding upon the legal successors and assigns of interest. 14. This written contract constitutes the entire agreement between the parties and it is understood that there is no agreement to do or not to do any act or deed except as specifically provided for herein. All provisions on each of the attachments are by this reference made a part hereof and the entire agreement consists of 3 pages. Prepared by Cheryl Watson, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515 - 239 -1273 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first herein written. Dated this 18 t day of (SEAL) THE CITY OF ubuque, IOWA, BUYER: By: Roy •.: Jr. , Mayor City of Disuque, IA STATE OF IOWA COUNTY OF On this 1st day of February 2010, before me, Susan w; n rr , a Notary Public in and for said State, personally appeared Roy D. Buol and Jeanne F. Schneider to me known, who being duly sworn did say that they are the Mayor and City Clerk for the City of Dubuque , Iowa, and that they executed this instrument on behalf of the City of Dubuque , Iowa and that said instrument is the voluntary act and deed of said city and by it voluntarily executed. Approval Recommended: ) § SUSAN M. WINTER COMMISSION NO.183274 MY COMMISSION EXPIRES 2/14/11 February STATE OF IOWA, STORY COUNTY, ss: BUYER'S ACKNOWLEDGMENT IOWA DEPARTMENT OF TRANSPORTATION, SELLER - 3 - ,2010 Attest: eanne Schneider, Clerk (Sign in Ink) N RY PUB I IN THE STATE OF IOWA l,1 CM) M. 6 - (Print/TypeName) MY COMMISSION EXPIRES Approved By: By: Nancy Halvorson Date Marty Sankey Date Property Management Supervisor Right of Way Director Telephone: 515- 239 -1359 SELLER'S ACKNOWLEDGMENT On this day of , 2010 before me, the undersigned a Notary Public in and for the State of Iowa, personally appeared , to me personally known, who being by me duly sworn did say that he is Right of Way Director for the Iowa Department of Transportation and that said instrument, which signature appears hereon, to be the voluntary act and deed of the said Department and by it voluntarily executed. (Sign in Ink) NOTARY PUBLIC IN THE STATE OF IOWA (Print/TypeName) MY COMMISSION EXPIRES ►►111111111111111111 11111111 11 11 11 Doc ID: 006740420003 Type: GEN Kind: OFFER Recorded: 05/07/2010 at 03:24:18 PM Fee Amt: $29.00 Page 1 of 3 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2010_00006041 Prepared by: Allyssa Sweeney, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515-239-1273 faN NOP Highway Division Office of Right of Way OFFER TO BUY AND DEFERRED PAYMENT PLAN Iowa Department of Transportation Parcel No. 108 County Dubuque Project No. BRF-20-9(1581-38-31 1. THE City of Dubuque, (hereinafter referred to as City) herewith submits an unconditional offer of $330,000.00, to the lowa Department of Transportation, (hereinafter referred to as Department) for the purchase of the following land: Parcel 'B', located in Block 14 of Dubuque Harbor Company Addition, in the City of Dubuque, as shown and described in Warranty Deed recorded Apri! 29, 2005 in Document No. 2005- 00006524 in the records of Dubuque County, Iowa. 2. TOTAL PURCHASE PRICE for the premises is $330,000.00 payable at the Highway Division, lowa Department of Transportation, Office of Cashier, Ames, lowa 50010, as follows: DOWN PAYMENT OF $47,143.00 shall be made on or before February 11, 2010. The first payment shall be made in the amount of $47,143.00 on October 1,2011 which is one (1) year after possession of the property has been granted by the Department. 3. SCHEDULE OF PAYMENT on the unpaid balance: 1. 15t day of October. 2011- $47,143.00 2. 1st day of October, 2012; $47,143.00 3. 1st day of October. 2013; $47.143.00 4. 15t day of October, 2014; $47,143.00 5. 1st day of October, 2015; $47,143.00 6. 15t day of October, 2016; $47,142.00 4. POSSESSION. Subject to payment of the down payment and Seller's acceptance of this offer, the City shall be entitled to possession of said premises on the 1st day of October, 2010; and thereafter so long as they shall perform the obligations of this contract. 5. TAXES. Buyer shall pay all subsequent taxes and special assessments, if any, to the County Treasurer, each year before they become delinquent. Buyer shall furnish to Seller evidence of payment of the same,. 6. INSURANCE. Buyer agrees to maintain liability insurance for loss or damage to the property or for personal injury arising out of Buyer's possession or use of the property. Buyer shall protect the premises from damage and shall prevent injury to people. Buyer shall indemnify and save the Seller harmless from all loss, claims, and causes of action for all damage to property and injury to persons arising out of Buyer's possession and use of the property. 7. CARE OF PROPERTY. Buyer shall maintain and take good and reasonable care of and shall not injure or destroy property. 8. FORFEITURE. If Buyer (a) fails to make the payments aforesaid, or any part thereof, as same become due; or (b) fails to pay the taxes or special assessments or charges, or any part thereof, levied upon said property, or assessed against it, by any taxing body before any of such items become delinquent; or (c) fails to keep the property insured; or (d) fails to maintain and to take good and reasonable care of or injure, or destroy property; or (e) fails to perform any of the agreements as herein made or required; then Seller, in addition to any and all other legal and equitable remedies which they may have, at their option, may proceed to forfeit and cancel this contract as provided by law (Chapter 656, Iowa). Upon completion of such forfeiture, Buyer shall have no right of reclamation or compensation for money paid, or improvements made; but such payments and/or improvements, if any, shall be retained and kept by Seller as compensation for the use of said property, -1- 0/7900 Prepared by: Cheryl Watson, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515-239-1273 the expiration of a lease, and may accordingly be ousted and removed as such as provided by law. 9. FORECLOSURE. If Buyer fails, in any one or more of the specified ways to comply with this contract, as in (a), (b), (c), (d), or (e) of paragraph 8 above, Seller may, upon thirty (30) days written notice of intention to accelerate the payment of the entire balance, during thirty days such default or defaults are not removed, declare the entire balance immediately due and payable; and thereafter at the option of the Seller, this contract may then be foreclosed in equity and a receiver may be appointed to take charge of said premises and collect the rent and/or profits thereof to be applied as may be directed by the Court. 10. ATTORNEY'S FEES. In case of any action or in any proceedings in any court to collect any sums payable or secured herein, or to protect the lien or title herein of Seller, or in any other case permitted by law in which attomeys' fees may be collected from Buyer, or imposed upon them, or upon the above described property, Buyer agrees to pay reasonable attorneys' fees. 11. ASSIGNMENTS. Neither Buyer nor his successors in interest, shall assign, sell, transfer, convey, alienate or permit divestiture of any right, title or interest in the premises or any part thereof without first notifying Seller, in writing, of his intention to do so and furnishing Seller a duplicate thereof. In the event all indebtedness, and any obligation secured hereby irrespective of the maturity dates expressed herein, at the option of Seller, shall be a lien upon all proceeds of any such assignment, sale, transfer, conveyance, alienation or divestiture, or so much of which proceeds as required by Seller, shall be applied to the payment of the interest, principal, indebtedness and obligation secured hereby. Seller reserves the right to set or convey seller's interest in this agreement to a third party. Should seller assign this agreement to a subsequent successor, Buyer shall be responsible for all terms, conditions and effects of this agreement to said successor in interest. 12. SPECIAL AGREEMENTS. a. Buyer agrees to keep the premises free from liens superior to the lien of this contract, or the right of the Seller in the premises. b. Buyer warrants that this sale is not being made to any person not of legal age. c. Buyer warrants that he is not employed by the Iowa Department of Transportation or the Federal Highway Administration and that this contract has not been obtained by any agreement to pay any fee, commission, percentage, gift or any other consideration to any person, and that no employee of the Iowa Department of Transportation or the Federal Highway Administration shall be admitted to any share or part of this purchase or to any benefit to arise therefrom. d. EXECUTED - Original to Seller, to be recorded in County Recorder's Office. CERTIFIED TRUE - Copy to Buyer. f. Upon receipt of the final payment title will be conveyed by State Patent. Abstract of Title will NOT be furnished to the purchaser. Patents will be recorded by the Iowa Department of Transportation in the county where the land is located. The recorded patent will be sent to the buyer. g. Sale is subject to lease #31-271-2 h. Direct Access between the above -described parcel of land and highway 20, highway 52, highway 61 or highway 151 will be prohibited. '13. This contract shall apply to and be binding upon the legal successors and assigns of interest. 14. This written contract constitutes the entire agreement between the parties and it is understood that there is no agreement to do or not to do any act or deed except as specifically provided for herein. All provisions on each of the attachments are by this reference made a part hereof and the entire agreement consists of 3 pages. Prepared by: Cheryl Watson, Iowa Department of Transportation, Right of Way, 800 Lincoln Way, Ames, IA 50010 515-239-1273 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first herein written. Dated this 1st day of THE CITY OF Dubuque, IOWA, BUYER: February , 2010 By: %,� f; y= ✓ Roy D. B� ol, Mayor City of Dubuque, IA STATE OF IOWA )§ COUNTY OF Attest: fiw eanne Schneider, Clerk BUYER'S ACKNOWLEDGMENT On this 1st day of February , 2010, before me, Susan Winter , a Notary Public in and for said State, personally appeared Roy D. Buol and Jeanne F. Schneider to me known, who being duly sworn did say that they are the mayor , and city Clerk for the City of Dubuque,lowa, and that they executed this instrument onbehalf ofthe City of Dubuque , Iowa and that said instrument is the voluntary act and deed of said city and by it voluntarily executed. (SEAL SUSAN M. WINTER FAY COMMISSION N0,183274 ^ MY COMMISSION EXPIRES 2/74/11 �1 ✓ , i �� Gv l.- u (Sign in Ink) NOJARY PUBLIC IN THE STATE OF IOWA /./ <H-it,/ l r, / t i f� k- (Print/TypeNarne) MY COMMISSION EXPIRES --1 1-- It IOWA DEPARTMENT OF TRANSPORTATION, SELLER Approval Recommended: 1 eAU/ a Nancy Hat*son Date Property [Management Supervisor Telephone: 515-239-1359 Approved By: Marty Sankey / Date Right of Way Director SELLER'S ACKNOWLEDGMENT STATE OF IOWA, STORY COUNTY, ss:/ On this 294 day of 2 / , 2010 be ore me, the undersigned a Notary Public in and for the State of Iowa, personally appeared /\/.r72A , % .7�a. 0,z to me personally known, who being by me duly sworn did say that he is Right of Way Director for the Iowa Department of Transportation and that said instrument, which signature appears hereon, to be the voluntary act and deed of the said Department and by it voluntarily executed. (SEAL) /0 A VALERIE E. GOETHALS COMMISSION NO.190573 MY COMMISSION EXPIRES JUNE 5. 2012 (Sign in Ink) NOTARY PUBLIC IN THE STATE OF IOWA �%u «= Goc rN¢1s (Print!TypeName) MY COMMISSION EXPIRES Iowa Department of Transportation 800 Lincoln Way, Ames, Iowa 50010 515-239-1300 515-233-7859 (FAX) May 12, 2010 When Communicating, Refer To: Dubuque County Project No.: BRF-20-9(158)-38-31 Parcel No.: 108 City of Dubuque c/o Roy Buol 50 West 13th Street Dubuque, IA 52001 Dear Mr. Mayor Buol: Please find enclosed the Recorded Offer to Buy and Deferred Payment Plan for the above project. Please call if you have questions at 515-239-1300. Sincerely, Allyssa Sweeney kl-C-(0'NOt Office of Property Management Office of Right of Way aes Enclosures