Amended and Restated Restrictive Covenant for 1849 Jackson Street Copyrighted
July 15, 2019
City of Dubuque Consent Items # 19.
ITEM TITLE: Amended and Restated Restrictive Covenantfor 1849
Jackson Street
SUMMARY: City Manager recommending approval of a resolution
amending and restating the single-family residence
covenant for 1849 Jackson Street, reducing the time on the
covenant from 21 years to 5 years.
RESOLUTION Approving anAmended and Restated
Single-Family Residence Covenant for the property at
1849 Jackson Street, Dubuque, lowa
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt
Resolution(s)
ATTACHMENTS:
Description Type
1849 Jackson StreetAmendmentto Restricti� City Manager Memo
Covenants-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Amended Restrictive Covenant Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amended and Restated Restrictive Covenant for 1849 Jackson Street
DATE: July 9, 2019
The property at 1849 Jackson Street was rehabilitated by Community Housing
Initiatives and has been on the market for almost two years. It is a one-bedroom loft,
which is not highly sought after as a single-family home. Those that have been
somewhat interested in the property revealed that the 21-year restrictive covenant was
a barrier to purchasing the property.
Housing and Community Development Director Alexis Steger recommends City Council
approval of a resolution amending and restating the single-family residence covenant
for 1849 Jackson Street, reducing the time on the covenant from 21 years to 5 years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Alexis M. Steger, Housing and Community Development Director
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Amended and Restated Restrictive Covenant for 1849 Jackson Street
DATE: July 8, 2019
Background
The City of Dubuque was previously the owner of 1849 Jackson Street and during
ownership placed a restrictive covenant on the property requiring it be a single-family
residence for a period of 21-years. The City then sold the property to Community
Housing Initiatives for the CHANGE program to rehabilitate and resell the property to
help revitalize the neighborhood.
Discussion
1849 Jackson Street has been on the market for almost two years. Community Housing
Initiatives approached the city to see what might help sell the property. The City of
Dubuque has a Washington Neighborhood homebuyer program, and was able to offer
any buyer of 1849 Jackson that was low-moderate income additional down payment
assistance. Although one offer came in for the property, it was an extremely low and not
viable offer.
Further information about those that have been somewhat interested in the property
revealed that the 21-year restrictive covenant was a barrier to purchasing the property.
This property is a one-bedroom loft, which is not highly sought after as a single-family
home. If a low-moderate income resident purchased this home, they fear they will have
a hard time selling the home, creating additional hardship. After evaluation of the
homebuyer programs, a typical low-moderate income homebuyer participating in these
programs attempts to sell a home after 5-7years.
A 5-year covenant would ensure a typical length of homeownership for a buyer of the
property. The goal would be to provide stability in the neighborhood for the next five
years while other initiatives continue to build homeownership in this neighborhood.
Recommendation
I respecffully request the City Council approve the attached resolution amending and
restating the single-family residence covenant, reducing the time on the covenant from
21 years to 5 years.
Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St., Suite 312, Telephone: 563-690-6072
Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: (563) 589-4100
RESOLUTION NO. 259-19
APPROVING AN AMENDED AND RESTATED SINGLE-FAMILY RESIDENCE
COVENANT FOR THE PROPERTY AT 1849 JACKSON STREET, DUBUQUE, IOWA
Whereas, City of Dubuque was previously the owner of 1849 Jackson Street,
Dubuque, Iowa (hereinafter "Property"); and
Whereas, City of Dubuque during its ownership of the Property placed a restrictive
covenant on the Property requiring it be a Single -Family Residence for a period of 21 -
years; and
Whereas, City of Dubuque later sold the Property to Community Housing Initiatives
(CHI); and
Whereas, CHI has requested the City of Dubuque modify the Single -Family
Residence Covenant for the Property from 21 -years to 5 -years; and
Whereas, the Parties agree this is a proper modification for the Property due to fact
the property is a one -bedroom home which makes it unique and not always suitable for
long term occupancy by a family due,to the lack of bedrooms; and
Whereas, the Parties now desire to amend, restate, and replace the Prior. Covenant
with the Amended and restated Single -Family Residence Covenant attached hereto;
and
Whereas, the City Council finds that it is in the best interest of the City of Dubuque to
approve the Amended and Restated Single -Family Residence Covenant.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The Amended and Restated Single -Family Residence Covenant is hereby
approved.
Section 2. The Mayor is hereby authorized and directed to execute the Amended and
Restated Single -Family Residence Covenant on behalf of the City of Dubuque.
Section 3. The City is Clerk is hereby authorized and directed to record this Resolution
and the Amended and Restated Single -Family Residence Covenant with the Dubuque
County Recorder.
Passed, approved and adopted this 15th day of Jul 2019.
Roy D. ByOI, Mayor
Attest:
Kevin S Firnstahl, City Clerk
Return to/Prepared by: Crenna Brumwell, 300 Main Street, Suite 330 Dubuque, IA 52001 563-589-4381
AMENDED AND RESTATED RESTRICTIVE COVENANTS
FOR RESIDENTIAL REAL ESTATE
Whereas, the signatories hereto were a party to or subject to a Single -Family
Residence Covenant recorded on October 9, 2015 as File 2015-00013115 of the county
records (the "Prior Covenant") for the purposes of subjecting the property described
below, to certain use limitation in accordance with the terms and conditions specified
therein; and
Whereas, the signatories hereto now desire to amend, restate, and replace the
Prior Covenant with this Amended and Restated Single -Family Residence Covenant
("Modified Covenant").
Now, therefore, the signatories hereto have entered into this Amended Covenant
for the purposes of subjecting the property described below to certain use limitations in
accordance with the terms and conditions specified herein.
1. The property is legally described as:
North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according
to the United States Commissioners Map thereof.
(Real Estate) locally known as 1849 Jackson Street, Dubuque, Iowa.
2. The Real Estate shall be known and described as residential Real Estate, and
shall not be improved, used, or occupied for other than one (1) private single-
family residential use. The Real Estate and any part thereof must be owner
occupied. Rental of the Real Estate is not allowed. No portion of the Real Estate
can be rented as an apartment.
3. 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.
4. 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 five (5) years from the date of the
recording of these covenants. The property owner has the right to renew these
covenants for successive five (5) year periods.
5. 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.
6. 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.
7. These restrictions, easements, rules and covenants shall be construed under
and in accordance with the laws of the State of Iowa.
The foregoing provisions encumber the Real Estate described as:
North 1/2 of the Middle 1/5 of Out Lot 490 in the City of Dubuque, Iowa, according
to the United States Commissioners. Map thereof.
Executed by the respective signatories effective the date first above written.
CITY OF DU : UQUE, IOWA
By:
Roy D. Bug, Mayor
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ATTEST:
Kevi
. Firnstahl, City Clerk
On this day of\ �•I , , 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.
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• ISFIT7GLEASON
Commission Number 719986
My Commission Expires
•
COMMUNITY HOUSING INITIATIVES
\\\,‘ .\•\,
By:
ATTEST:
Notary Public in the State of Iowa
My Commission expires • 1° • •-t.D
On this \day ac,\A , 2019, before me, a Notary Public in and for said state,
personally appeared ,LA ci No, c, and
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.
TAMI J. ERNSTER
IOWA NOTARIAL SEAL Notary Public in the State of Iowa
COMMISSION] NUMBER: 198722
MY COMMISSION EXPIRES: SEPT. 30, 20!1 My Commission expires
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