Intent to Dispose of City-Owned Property at 445 Loras_Initiate Copyrighted
June 17, 2019
City of Dubuque Items to be set for Public Hearing # 1.
ITEM TITLE: Intentto Disposeof City-Owned Propertyat445 Loras
Boulevard
SUMMARY: City Manager recommending that the City Council set a
public hearing for July 1, 2019 to consider the sale of City-
owned property at 445 Loras Boulevard to Affordable
Housing Network, Inc. (AHNI).
RESOLUTION Intentto dispose of an interest in Cityof
Dubuque real estate, setting a time and place for hearing
and providing for the publication of notice thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for July 1, 2019
ATTACHMENTS:
Description Type
445 Loras Intentto Dispose- MVM Memo City Manager Memo
445 Loras - Requestfor Public Hearing Staff Memo
Restrictive Covenant Supporting Documentation
Offer to Buy Supporting Documentation
Resolution Setting Hearing 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: Sale of City-Owned Property at 445 Loras Boulevard — Public Hearing
DATE: June 17, 2019
Housing and Community Development Director Alexis Steger requests the City Council
set a public hearing for July 1 , 2019 on the sale of 445 Loras Boulevard to Affordable
Housing Network, Inc. for $1 .00, at which point Affordable Housing Network will
rehabilitate the property for sale or long-term occupancy.
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
Alexis M. Steger, Housing and Community Development Director
THE CTTY OF Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Sale of City-owned property at 445 Loras Blvd. — Public Hearing
DATE: June 10, 2019
Introduction
The purpose of this memorandum is to request the City Council to hold a Public Hearing
for the purpose of disposing of City-owned real property located at 445 Loras Blvd.
Background
The City took legal action by petitioning the courts for ownership of 445 Loras Blvd. after
several years of enforcement. The City received ownership of property after petition to
the courts in November 2017
Discussion
Dubuque and Affordable Housing Network, Inc. (AHNI) have been in discussions about
AHNI assisting the City of Dubuque's affordable housing initiatives by acquiring,
rehabilitating, and selling homes to low income buyers, or by doing other long-term
programs such as lease-to-own agreements with prospective owners. The City's
standard 21-year covenant will be placed on the sale; however, the City will allowAHNI
flexibility for a rent-to-own arrangement.
The property at 445 Loras Blvd. has been under evaluation for several projects over the
past decade but the City has been unsuccessful in finding someone to undertake the
project. ANHI representatives have viewed the project and have made an offer to
purchase it from the City for one dollar and rehabilitate the building.
Recommendation
This memo is a request to conduct a public hearing on July 1, 2019 for the sale of 445
Loras Blvd. to Affordable Housing Network, Inc. (AHNI) for one dollar, at which point
AHNI will rehabilitate the propertyfor sale or long-term occupancy.
RESOLUTION NO. 236-19
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE,
SETTING A TIME AND PLACE FOR HEARING AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque, Iowa (City) owns 445 Loras Boulevard (the Property)
legally described as:
Lot 5 of the Subdivision of Out Lot 667 in the City of Dubuque, Iowa, according
to the recorded plat thereof;
and
WHEREAS, the City acquired the Property by petition as an abandoned property for
the purpose of its restoration and re -sale for owner -occupied housing; and
WHEREAS, Affordable Housing Network, Inc. will rehabilitate the property and sell it to
an income qualified household for single family occupancy; and
WHEREAS, conveying the Property to Affordable Housing Network, Inc. is consistent
with the City goal of creating opportunities for affordable home ownership.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, THAT:
Section 1. The City Council shall conduct a public hearing on the proposed disposition
of real estate in the City Council Chambers at the Historic Federal Building, 350 W. 6th
Street, Dubuque, Iowa on the 1st day of July 2019 beginning at 6:00 p.m.
Section 2. The City Clerk be and is hereby authorized and directed to publish notice
of the public hearing in the form attached hereto, according to law.
Passed, approved and adopted this 17th day of June 2019.
ATTEST:
Kevin'"S. Firnstahl, City C erk
Roy D. Buol, Mayor
Prepared by Crenna Brumwell, 300 Main Street, Suite 330 Dubuque, IA 52001 563-589-4381
RESTRICTIVE COVENANTS FOR RESIDENTIAL REAL ESTATE
KNOW ALL PERSONS BY THERE PRESENT that the City of Dubuque, lowa
(City), the owner of the following premises situated in the City of Dubuque, lowa:
Lot 5 of the Subdivision of Out Lot 667 in the City of Dubuque, lowa, according to
the recorded plat thereof,
(Real Estate) does hereby establish and place the following restrictive covenants on the
Real Estate:
1 . The Real Estate shall be known and described as residential Real Estate, and
shall not be improved, used or occupied for other than as a duplex comprised of two (2)
housing units. The Real Estate and must be fifty percent (50°k) owner occupied.
Rental of the more than one half (1/2) of the Real Estate is not allowed. One (1) unit of
the duplex must be owner occupied at all times.
2. The City has the right to enforce, by any proceedings in law or in equity, all
restrictions, conditions and covenants now or hereafter imposed by the provisions of
these restrictive covenants.
3. These covenants shall be filed for record in the office of the Dubuque County
Recorder and all covenants, agreements, promises and representations herein stated
shall be deemed to be covenants running with the Real Estate and shall endure and be
binding on the parties hereto, their mortgagees, lienholders, successors and assigns,
for a period of twenty-one (21) years from the date of the recording of these covenants.
The property owner has the right to renew these covenants for successive twenty-one
(21) year periods.
4. Invalidation of any of these covenants by judgment or court order shall in no way
affect any of the other provisions, which shall remain in full force and effect.
5. The waiver of any violation or failure to enforce any such restrictions, easements,
and covenants shall not in any event operate as a waiver, impairment or abrogation of
same, or the right to enforce the same in the event of any future or other breach of the
same of any other restriction, easement, rule or covenant, by the same or any other
person.
6. These restrictions, easements, rules and covenants shall be construed under
and in accordance with the laws of the State of lowa.
The foregoing provisions encumber the Real Estate described as;
(Insert legal here)
Executed by the respective signatories effective the date first above written.
CITY OF DUBUQUE, IOWA
By:
Roy D. Buol, Mayor
ATTEST:
Kevin S. Firnstahl, City Clerk
On this day of , 2019, before me, a Notary Public in and for said state,
personally appeared Roy D. Buol and Kevin S. Firnstahl known to me to be the
person(s) named in and who executed the foregoing instrument, and acknowledged that
they executed the same as their voluntary act and deed.
Notary Public in the State of lowa
My Commission expires
On this day of , 2019, before me, a Notary Public in and for said state
personally appeared known to me to be the person(s) named in
and who executed the foregoing instrument, and acknowledge that they executed the
same as their voluntary act and deed.
Notary Public in the State of lowa
My Commission expires
2
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: City of Dubuque, lowa, a municipal corporation (Seller)
SECTION 1. REAL ESTATE DESCRIPTION. The undersigned BUYER hereby offers
to buy and the undersigned SELLER by its acceptance agrees to sell the real estate (Real
Estate) situated in Dubuque, lowa, locally known as 445 Loras Boulevard, Dubuque, IA
52001 and legally described as:
Lot 5 of the Subdivision of Out Lot 667 in the City of Dubuque, lowa, according to
the recorded plat thereof
legal description to be confirmed per continued abstract per Section 10, together with any
easements and appurtenant servient estates, but subject to the following:
a. any easements of record for public utilities or roads,
b. any zoning restrictions and other ordinances, and
c. any covenants of record.
SECTION 2. PURCHASE PRICE. The purchase price shall be one dollar ($1 .00).
SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes
payable for fiscal year 2018 and prior years. Seller shall also pay real estate taxes for
fiscal year 2019 prorated through the date of closing. Buyer shall pay all subsequent real
estate taxes due and payable after the date of closing.
SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments
which are a lien on the Real Estate as of the date of acceptance of this Offer. All other
special assessments shall be paid by Buyer.
SECTION 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or
damage to the Real Estate prior to closing or possession, whichever first occurs. Seller
agrees to maintain existing insurance and Buyer may purchase additional insurance. In
the event of substantial damage or destruction prior to closing, this agreement shall be
null and void; provided, however, Buyer shall have the option to complete the closing and
receive insurance proceeds regardless of the extent of damages. The property shall be
deemed substantially damaged or destroyed if it cannot be restored to its present
condition on or before the closing date.
SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its
present condition and delivered intact at the time of possession is delivered to Buyer,
provided, however, if there is loss or destruction of all or any part of the Real Estate from
causes covered by the insurance maintained by Seller, Buyer may agree to accept such
damaged or destroyed Real Estate together with such insurance proceeds in lieu of the
Real Estate in its present condition and Seller shall not be required to repair or replace
same.
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SECTION 7. POSSESSION AND CLOSING.
7.1 If Buyer timely performs all obligations, possession of the Real Estate shall be
delivered to Buyer on or before July 15, 2019, or such earlier date as the parties may
agree in writing, with any adjustments of rent, insurance, and interest to be made as of
the date of transfer of possession.
7.2 Closing shall occur after the approval of title by Buyer and vacation of the Real
Estate by Seller, but prior to possession by Buyer. Seller agrees to permit Buyer to
inspect the Real Estate within seventy-two (72) hours prior to closing to assure that the
premises are in the condition required by this agreement. If possession is given on a day
other than closing, the parties shall make a separate agreement with adjustments as of
the date of possession.
7.3 This transaction shall be considered closed upon the delivery of the title transfer
documents to Buyer and receipt of all funds then due at closing from Buyer under the
Agreement.
SECTION 8. USE OF PURCHASE PRICE. At time of settlement, funds of the
Purchase Price may be used to pay taxes and other liens and to acquire outstanding
interests, if any, of others.
SECTION 9. FIXTURES. Included with the Real Estate shall be all fixtures that
integrally belong to, are specifically adapted to or are a part of the real estate, whether
attached or detached. Also included shall be the following: N/A. The following items shall
not be included: N/A.
SECTION 10. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an
abstract of title to the Real Estate and deliver it to Buyer's attorney for examination. It
shall show marketable title in Seller in conformity with this Agreement, lowa law, and title
standards of the lowa State Bar Association. Seller shall make every reasonable effort
to promptly perfect title. If closing is delayed due to Seller's inability to provide marketable
title, this agreement shall continue in force and effect until either party rescinds the
Agreement after giving ten (10) days written notice to the other party. The abstract shall
become the property of Buyer when the Purchase Price is paid in full. Seller shall pay
the costs of any additional abstracting and title work due to any act or omission of Seller,
including transfers by or the death of Seller or Seller's assignees. Unless stricken, the
abstract shall be obtained from an abstracter qualified by the Guaranty Division of the
lowa Housing Finance Authority.
SECTION 11. DEED. Upon payment of the Purchase Price, Seller shall convey the Real
Estate to Buyer by Special Warranty Deed, free and clear of all liens, restrictions, and
encumbrances, except as provided in this agreement. General warranties of the title shall
extend to the time of delivery of the deed excepting liens and encumbrances suffered or
permitted by Buyer.
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SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract
shall apply to and bind the successors in interest of the parties. This agreement shall
survive the closing.
SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND
REVIEW. Real Estate deeded herein is taken in "as is" condition with no guarantees or
warranties express or implied, except as otherwise provided herein.
SECTION 14. ENCUMBRANCES. Seller warrants that the Real Estate will as of the
date of closing be free and clear of all liens, security interests, and encumbrances.
SECTION 15. TENANTS. The Real Estate is free and clear of any occupants, and no
party has a lease to or other occupancy or contract right in the Real Estate which shall in
anyway be binding upon the Real Estate. Seller shall hold harmless and indemnify the
Buyer for and against any claims, which may arise or be based upon any alleged
leasehold interest, tenancy, or other right of occupancy or use for any portion for the Real
Estate. This covenant shall survive the closing.
SECTION 16. NO REAL ESTATE AGENT OR BROKER. Neither party has used the
service of a real estate agent or broker in connection with this transaction.
SECTION 17. CERTIFICATION. Buyer and Seller each certify that they are not acting,
directly or indirectly, for or on behalf of any person, group, entity or nation named by any
Executive Order or the United States Treasury Department as a terrorist, "Specially
Designated National and Blocked Person" or any other banned or blocked person, entity,
nation or transaction pursuant to any law, order, rule or regulation that is enforced or
administered by the Office of Foreign Assets Control; and are not engaged in this
transaction, directly or indirectly on behalf of, any such person, group, entity or nation.
Each party hereby agrees to defend, indemnify and hold harmless the other party from
and against any and all claims, damages, losses, risks, liabilities and expenses (including
attorney's fees and costs) arising from or related to breach of the foregoing certification.
SECTION 18. REMEDIES OF THE PARTIES.
18.1 If Buyer fails to timely perform this contract, Seller may forteit it as provided in the
lowa Code, and all payments made shall be forteited or, at Seller's option, upon thirty (30)
days written notice of intention to accelerate the payment of the entire balance because of
such failure (during which thirty (30) days such failure is not corrected) Seller may declare
the entire balance immediately due and payable. Thereafterthis contract may be foreclosed
in equity and the Court may appoint a receiver.
18.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments
made returned to it.
18.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at
law or in equity available to them and shall be entitled to obtain judgment for costs and
3
attorney fees as permitted by law.
SECTION 19. WAIVER. Failure to promptly assert rights herein shall not, however, be
a waiver of such rights or a waiver of any existing or subsequent default.
SECTION 20. NOTICE. Any notice under this agreement shall be in writing and be
deemed served when it is delivered by personal delivery or mailed by certified mail,
addressed to the parties at the addresses given below.
Affordable Housing Network, Inc.
5400 Kirkwood Boulevard SW
Cedar Rapids, IA 52404
City of Dubuque
Attn: Alexis Steger
50 W. 13�h Street
Dubuque, lA 52001
SECTION 21. TIME IS OF THE ESSENCE. In the performance of each part of this
agreement, time shall be of the essence.
SECTION 22. TIME FOR ACCEPTANCE. When accepted, this agreement shall
become a binding contract. If this Offer is not accepted and delivered to Buyer on or before
5:00 p.m. on June 14, 2019, this agreement shall be null and void and all payments shall
be returned immediately to the Buyer.
SECTION 23. ENTIRE AGREEMENT. This agreement contains the entire agreement
of the parties and shall not be amended except by a written instrument duly signed by
Seller and Buyer.
SECTION 24. PARAGRAPH HEADINGS AND CONSTRUCTION. Paragraph headings
are for convenience of reference and shall not limit or affect the meaning of this
agreement. Words and phrases herein shall be construed as in the singular or plural
number, and as masculine, feminine or neuter gender according to the context.
SECTION 25. OTHER PROVISIONS.
25.1 This agreement is subject to the final approval of the City Council of the City of
Dubuque, lowa in its sole discretion. If the City Council of the City of Dubuque, lowa does
not approve this Offer, it shall become automatically void and neither party shall be bound
by the terms and conditions set forth herein.
25.2 The Real Estate will have a restrictive covenant filed indicating the property must
remain a single family owner-occupied home for twenty-one (21) years.
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SELLER BUYER
CITY OF DUBUQUE, IOWA AFFORDABLE HOUSING NETWORK, INC.
By: By:
Roy D. Buol, Mayor Printed Name:
Dated: Dated:
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