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1997 County Farm Purchase DocumentsCITY OF DUBUQUE, IOWA MEMORANDUM January 30, 1997 TO: The Honorable Mayor and City Council FROM: Michael C. Van Milligen, City Manager SUBJECT: Offer to Buy County Farm Property for Industrial Park The Mayor and City Council have been very involved with the negotiations with the County Board of Supervisors to purchase the 210 acre County Farm property for industrial development. At the January 27th meeting of the County Board, the City's offer to purchase was accepted. I respectfully request approval of that offer to purchase. This approval will begin the analysis of the property to ensure it is developable prior to a June 3, 1997 closing. Michael C. Van Milligen MCVM/j Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager Jim Burke, Community and Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM January 29, 1997 TO: Michael Van Mi gen, City Manager FROM: J. s Burke, Community and Economic Development Director SUBJ: Offer to Buy County Farm Property for Industrial Park INTRODUCT][ON This memorandum presents for City Council approval an offer to buy the County Farm property for industrial park development. BACKGROUND In November, 1995, the City Council began a study of potential industrial park locations in response to the critical shortage of marketable sites for new and expanding business. Initially, six sites were identified and studied for their development potential. The attached map shows the location of these sites. After this review, Site A, located off the Northwest Arterial north of Asbury Road, was eliminated from further study. The remaining five sites were then analyzed for development feasibility and costs. The findings were presented to the City Council on July 1. The Council discussed the report and multiple options for development of industrial parks. As a result of the Council discussion, contacts were made with property owners to identify the availability of their land. From these contacts, an offer to buy and acceptance was negotiated for Council approval with the owners of the northerly portion of Site F, a 120 acre parcel located at the southeast corner of U.S. Highway 61-151 and Lake Eleanor Road. The Council approved this offer in November and the City took possession of the property on January 15. Further contacts with property owners have resulted in offers to buy properties in Site B and Site C. This memorandum transmits an offer to purchase the County Farm in Site B. The City Council received an offer to purchase the Siegert farms in Site B and Site C at a previous meeting. A public hearing will be held on the Siegert offer on Monday, February 3. The proposed County Farm acquisition consists of approximately 210 acres located on both sides of Seippel Road north of the Chicago Central Railroad right-of-way. The approximate boundaries of this site are shown on the attached map. Dubuque County is the current owner. The key attributes of this site for industrial park development include: proximity to Dubuque Industrial Center, potential for rail access, ability to extend City utilities and a willing seller. Approximately 120 acres of industrial sites can be developed on this property. DISCUSSION Attached to this memorandum is an Offer to Buy and Acceptance which has been approved by the Dubuque County Board of Supervisors following a public hearing on January 27, 1997. Briefly, the significant provisions of this agreement include: 1. Purchase Price. The purchase price will be paid to the County as and when the City sells property to a business or industry. The City will pay a pro rata share of the amount received from a business for a development site based on the following formula: $4500 x the amount received. ($4500 + actual per acre development cost) 2. Possession. If all conditions of the offer are met, a deed for the property will be delivered to the City on June 3, 1997. 3. Conditions. The City's offer is conditioned upon the following: (1) Improvement of Seippel Road and Extension to U.S. Highway 20. The County will improve Seippel Road and will extend Seippel Road south and east to a new intersection with U.S. Highway 20 as shown on the plan attached to the Offer. This improvement must be completed by December 1, 1998. The City will support an amendment to the County's approved RISE project to provide for the proposed extension of Seippel Road. However, if for some reason, the County is unable to utilize these funds, it will complete the Seippel Road improvements and Seippel Road extension from other resources under its control. The City will support a request from the County to the Dubuque Metropolitan Area Transportation Study (DMATS) Board for funding of improvements to Old Highway Road. (2) Removal of Sewage Lagoons. The County will work with the City to facilitate the abandonment of the existing sewage lagoons located at the southeastern corner of the property. The City will pay the cost of removal. (3) Extension of City Water and Sewer. The City will extend water and sanitary sewer trunk lines to provide service to the property and permit the County to connect County facilities to these sewer and water lines. The City will pay the costs of these extensions and the County will pay the costs of service connections to County facilities. The City will not require that the County annex those County properties to be served by City sanitary sewer and/or water lines for as long as those properties are owned and used by the County. However, should all or any part of the properties be transferred to a party other than the County, the City will require annexation as a condition of continued service. (4) Development of Property. The City will undertake the grading and improvement of the property for industrial sites including construction of streets, sewer and water. The City will make every reasonable effort to complete extension of sanitary sewer and water trunk lines by December 31, 1997. (5) Suitability for Industrial Park Development. The City will ascertain prior to May 1, 1997, whether the property is suitable for development of an industrial park. The City may cancel the purchase by giving written notice to County, if it determines that development of an industrial park is not feasible. (6) Annexation Application. By January 17, 1997, the County will submit to the City an application for annexation of the property to the City of Dubuque. (7) County Consent to Exercise of Urban Renewal Powers. The County consents to the exercise by the City of urbanrenewal powers in the County Farm and adjoining areas including the establishment or expansion of urban renewal projects and the use of tax increment financing. (8) Demolition and Removal of Structures and Underground Tank. Prior to the date of possession, the will demolish and remove the existing structures and underground tank located on the property. The City will share the cost of this removal. (9) CRP Payments. The City and County will prorate any CRP payments for the property as of the date of possession. (10) Approval. This offer is subject to the final approval of the Board of Supervisors of the County of Dubuque, Iowa, and the City Council of the City of Dubuque, Iowa. The process for annexation of this property will begin with a public hearing to be held by the City Council on February 3. The petition will then be forwarded to the City Development Board for their review and approval. Establishment of an urban renewal district and rezoning to an appropriate district will follow. Following approval of this Offer, staff will proceed with selection of a consulting firm to complete design, engineering and construction management so that site development can begin in early Spring of 1998. Staff and consultants will also proceed with the necessary soil borings and Phase I environmental assessment of the property. If no major obstacles are encountered, industrial park sites should be ready for development by September, 1998. RECOMMENDATION I recommend that the City Council approve the attached Offer to Buy and Acceptance for the County Farm property. This purchase is for a portion of a site recommended in the Industrial Park Development Feasibility Study. The purchase price is reasonable when compared to similar properties. And the purchase will permit the development of new industrial sites, the City's top priority. The acquisition and development of this property is an additional step toward having the total amount of industrial land needed by the community The Development Needs Study component of the Comprehensive Plan states that we need 700-800 acres of suitable industrial land. z O } /67.58 Z O Q od 73ddi3s •1 C3 p= 1 W Q •CO1 1 musionimmaRNERREmommill f: \gra\dgn\dubuq\kubik_dgn Feb. 7. 1995 16:51: 23 N • a • EXHIBIT A ADDITIONAL PROVISION TO OFFER TO PURCHASE PROPERTY 1. Purchase Price. The purchase price will be paid to the County as and when the City sells property to a business or industry. The City will pay a pro rata share of the amount received from a business for a development site based on the following formula: $4500 x the amount received. ($4500 + actual per acre development cost) For purposes of this calculation, the "actual per acre development costs" shall include: a. 100% of the City's costs for developing the proposed industrial park including design, engineering and construction of sanitary sewer, and water mains, storm sewer, and streets including street lighting; site preparation including building demolition; grading and restoration of the property; and expenses related to the platting and disposition of sites, plus b. 20 % of the City's costs to extend sanitary sewer and water trunk lines to the area, less c. Any state or federal grants which reduce the City's costs for the industrial park development. 2. Improvement of Seippel Road and Extension to U.S. Highway 20. The County agrees to improve Seippel Road as described in its approved application for RISE funding from the Iowa Department of Transportation. However, in place of the improvement of Old Highway Road as part of this project, the County will extend Seippel Road south and east to a new intersection with U.S. Highway 20 as shown on the attached plan. This improvement must be completed by December 1, 1998. It is understood that the County has obtained a RISE grant for a portion of the cost to upgrade Seippel Road and to improve Old Highway Road. The City will support an amendment to this RISE project to provide for the proposed extension of Seippel Road. However, if for some reason, the County is unable to utilize these funds, it will complete the Seippel Road improvements and Seippel Road extension from other resources under its control. The City will support a request from the County to the Dubuque Metropolitan Area Transportation Study (DMATS) Board for funding of improvements to Old Highway Road. 3. Removal of Sewage Lagoons. The County acknowledges that the City's plan for development of the property requires the removal of the County's existing sewage lagoons located at the southeastern cornerof the property. The County will work with the City to facilitate the abandonment of these lagoons. The City will pay the cost of removal of the sewage lagoons which cost shall be part of the "actual per acre development costs". 4. Extension of City Water and Sewer. The City will extend water and sanitary sewer trunk lines to provide service to the property. The County will connect County facilities to these sewer and water lines. The City will pay the costs of these extensions. The County will pay the costs of service connections to County facilities. The City will not require that the County annex to the City those properties to be served by City sanitary sewer and/or water lines for as long as those properties are owned and used by the County. However, should all or any part of the properties be transferred to a party other than the County, the City will require annexation as a condition of continued service. 5.. Development of Property. The City will undertake the grading and improvement of the property for industrial sites including construction of streets, sewer and water. The City will make every reasonable effort to complete extension of sanitary sewer and water trunk lines by December 341997. 6. Suitability for Industrial Park Development. The City will ascertain prior to May 1, 1997, whether the property is suitable for development of an industrial park. In this • regard, the County shall permit the City and its agents to have access to the property to conduct soil tests, environmental assessments, and site surveys. In the event the City determines that the development of an industrial park is not feasible, City may cancel this Agreement by giving written notice to County. 7. Annexation Application. By January 17, 1997, the County will submit to the City an application for annexation of the property to the City of Dubuque. 8. County Consent to Exercise of Urban Renewal Powers. Pursuant to Section 403.17(3) of the Code of Iowa (the "Code"), the County hereby consents to the exercise by the City of all powers under Chapter 403 of the Code deemed necessary or desirable by the City to establish one or more urban renewal areas in all or any portion of the County Farm and other areas of the County adjoining the County Farm and being contiguous thereto (together, the "Proposed Urban Renewal Area"). The County further consents to and authorizes the City to take all such steps or actions as may be permitted under Chapter 403 that the City determines to be necessary or desirable to achieve or further the goals and objectives of the urban renewal plans for the Proposed Urban Renewal Area, including but not limited to the acquisition of property, the issuance of bonds or other obligations to pay urban renewal project costs and the full implementation of tax increment financing therein. In doing so, the County consents to and agrees that the City may (I) adopt one or more urban renewal plans at different times covering different portions of the Proposed Urban Renewal Area, (ii) merge and combine any such urban renewal areas and plans with other urban renewal areas and plans as may be authorized by law and (iii) implement the division of taxes within the Proposed Urban Renewal Area under the provisions of Section 403.19 of the Code at such times as the City shall determine and in accordance with Chapter 403 of the Code. Nothing herein shall be deemed to waive the County's rights to receive the notices described in Section 403.5 of the Code or to participate in the consultations and public hearings described therein with respect to any such urban renewal plans. The provisions of this Section shall survive the termination of this Agreement and the payment in full of the purchase price described herein. 9. Demolition and Removal of Structures and Underground Tank. The City and County agree to each pay one half of the costs to demolish and remove the existing structures and underground tank located on the property. These structures and underground tank shall be removed prior to date of possession. 10. CRP Payments. The City and County will prorate any CRP payments for the property as of the date of possession. 11. Approval. This offer is subject to the final approval of the Board of Supervisors of the County of Dubuque, Iowa, and the City Council of the City of Dubuque, Iowa. By: CITY OF DI BUQUE, IOWA DUBUQUE COUNTY, IOWA Michael Van Milligen City Manager B TELEPHONE: 319.589.4441 January 27, 1997 Mr. Mike Van Milligen City Manager 50 W. 13t' St. Dubuque, IA 52001 Dear Mike: 2u1utjue Cottn4 f g&oard 0,1 Su ervcsor3 COURTHOUSE DUBUQUE, IOWA 52001-7053 DONNA L. SMITH ALAN R. MANTERNACH JIM WALLER At our regular meeting today, the Dubuque onnty Board of Supervisors held a public hearing and approved my signature on the Offer to ;Buy Real Estate and Acceptance and Exhibit A, which are enclosed. We look forward to your preparation of the abstract for the property. We have appreciated the continue: jh encl. cc: Ric: of Dubuque in this process. 'ISORS ®0 313-M 4-D RESOLUTION NUMBER 97- C' WHEREAS, by a Resolution adopted on the 15t day of January, 1997, the Dubuque County Board of Supervisors proposed to convey to the City of Dubuque for the sum of $1.00 and other good and valuable consideration the following real property owned by Dubuque County: The NW 1/4 of the SW 1/4 of the SW 1/4, Lot 1 of the SE 1/4 of the SW 1/4 and Lot 1 of the SW 1/4 of the SW 1/4, all in Section 30, Township 89 North, Range 2 East of the Fifth Principal Meridian; also Lot 1 of the NE 1/4 of the SE 1/4, and commencing at the NE corner of Lot 1-1-1 of the SE 1/4 of the SE 1/4, thence southerly 562.15 feet to the point of intersection with the NE corner of Lot 2-1-1 of the SE 1/4, thence westerly 762.93 feet to the point of intersection with the NW comer of Lot 2-1-1 of the SE 1/4 of the SE 1/4, thence westerly approximately 570 feet to the point of intersection with the western boundary of Lot 1-1-1 of the SE 1/4 of the SE 1/4, thence northerly along the western boundary of Lot 1-1-1 of the SE 1/4 of the SE 1/4 to the point of intersection with the SW corner of Lot 1 oft he NE 1/4 of the SE 1/4, thence easterly along the southern boundary of Lot 1 of the NE 1/4 of the SE 1/4 to the point of beginning, all in Section 25, Township 89 North, Range 1 East of the Fifth Principal Meridian, Dubuque County, Iowa. This real property, commonly known as the Dubuque County Farm, consisting of approximately 210 acres along and on both sides of Seippel Road north of the Chicago Central Railroad Tracks will be sold at a purchase price of $4,500 per developable acre based upon an estimate that there are 127 developable acres on the property. A portion of the purchase price will be paid to the County each time the City sells a portion of the property, based upon a formula set forth in Exhibit A of the Offer to Buy Real Estate and Acceptance accepted by the Dubuque County Board of Supervisors at its meeting of January 13, 1997. A $100 down payment shall be paid to the County upon acceptance of the offer, to be credited against the purchase price at the time of the sale of the property; and WHEREAS, a public hearing was held on the proposal on January 27, 1997, pursuant to the published notice. IT IS THEREFORE RESOLVED that the foregoing proposal is approved and the Chairperson to authorized to sign the Offer to Buy Real Estate and Acceptance and including Exhibit A, Additional Provision, and to order the preparation of a warranty deed. Resolution adopted this Z day of January, 1997. /1.227 Alan Manternach, Chairperson Attest: Denise M. Dolan, County Auditor THE IOWA STATE BAR ASSOCIATION Official Form No. 153 ISBA# 07324 FOR THE LEGAL EFFECT OF THE USE OF THIS FORM, CONSULT YOUR LAWYER Preparer Information Individual's Name Street Address City Phone 3Y Sz,,,.�d 0� LINE SPACEFOR RECORDER TO BUY REAL ESTATE AND ACCEPTANCE , Sellers: OFFER TO Dubuque County 1. REAL ESTATE DESCRIPTION. Iowa, described as follows: Commonly known as 210 acres along and Central Railroad with any easements and appurtenant of record; c. any easements of record interests of others.) The Buyers offer to buy real estate in Dubuque County, the Dubuque County Farm consisting of approximately on both sides of Seippel Road north of the Chicago Tracks. servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants for public utilities, roads and highways; and d. (consider: liens, mineral rights; other easements; designated the Real Estate; provided Buyers, on possession, are permitted to make the following use of the Real Estate: 2. PRICE. The purchase price shall as follows: $4,500.00 per 127 developable acres be paid to Seller each the formula set forth by Buyer to Seller against the purchase 3. REAL ESTATE TAXES. Sellers and any unpaid real estate taxes payable taxes on the Real Estate shall be based 4. SPECIAL ASSESSMENTS. a. Sellers shall pay all special assessments b. IF a. IS STRICKEN, then Sellers paid, would become delinquent during c. All other special assessments 5. RISK OF LOSS AND INSURANCE. follows: a. All risk of loss shall remain b. IF a. IS STRICKEN, Sellers shall Estate until possession is given to additional insureds as their interests under this paragraph and notified Buyers 6. CARE AND MAINTENANCE. The delivered to Buyers, provided, however, covered by the insurance maintained insurance proceeds in lieu of the Real be 9CXXXXXXXXXXXXXXXXXXXXXXOX,M4 &XXXXXXXXXXXXXXxxxxxxxx ntj1(x1Rx+A. developable acre based upon an estimate that on the property. A portion of the purchase time Buyer sells a portion of the property in Exhibit A. A $100.00 down payment shall upon acceptance of this offer. Said sum shall price at time of sale of property by Buyer. shall pay None in prior years. Buyers shall pay all subsequent real estate taxes. upon such taxes for the year currently payable unless the parties state which are a lien on the Real Estate as of the date of acceptance shall pay all installments of special assessments which are a lien the calendar year this offer is accepted, and all prior installments thereof. shall be paid by Buyers. Risk of loss prior to Seller's delivery of possession of the Real with Sellers until possession of the Real Estate shall be delivered to Buyers. maintain $ —0_ of fire, windstorm and extended coverage there are price will based on be paid be credited Any proration of real estate otherwise. of this offer. on the Real Estate and, if not Estate to Buyers shall be as -- insurance on the Real policies naming Buyers as after Sellers have performed insurance to cover such risk. at the time possession is of the Real Estate from causes Estate together with such or replace same. Buyers and shall promptly secure endorsements to the appropriate insurance may appear. Risk of loss from such insured hazards shall be on Buyers of such performance. Buyers, if they desire, may obtain additional Real Estate shall be preserved in its present condition and delivered intact if 5.a. is stricken and there is loss or destruction of all or any part by Sellers, Buyers agree to accept such damaged or destroyed Real Estate in its present condition and Sellers shall not be required to repair © The Iowa State Bar Association 153 OFFER TO BUY REAL ESTATE AND ACCEPTANCE CALFS Release 3.0 6/94 R.,,;...1 ni,.., ,,,.tio, 1 ooG 1 7. POSSESSION . If Buyers timely perform all obligations, possession of the Real Estate shall be delivered to Buyers on June 3 , 19 97 , with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. 8. FIXTURES. All property that integrally belongs to or is part of the Real Estate, whether attached or detached, such as light fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, automatic heating equipment, air conditioning equipment, wall to wall carpeting, built-in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale except: (consider: rental items.) 9. 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. 10. ABSTRACT AND TITLE. Sellers, at their expense, shall promptly obtain an abstract of title to the Real Estate continued through the date of acceptance of this offer, and deliver it to Buyers for examination. it shale .,h.,.v rrberchentcble title in Sellers in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyers when the purchase price is paid in full. Sellers shall pay the costs of any additional abstracting and title work due to any act or omission of Sellers, including transfers by or the death of Sellers or their assignees. 11. DEED. Upon payment of the purchase price, Sellers shall convey the Real Estate to Buyers or their assignees, by Warranty deed, free and clear of all liens, restrictions, and encumbrances except as provided in 1 .a. through 1 .d.. Any general warranties of title shall extend only to the time of acceptance of this offer, with special warranties as to acts of Sellers continuing up to. time of delivery of the deed. 12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If Sellers, immediately preceding acceptance of this offer, hold title to the Real Estate in joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the Sellers, then the proceeds of this sale, and any continuing or recaptured rights of Sellers in the Real Estate, shall belong to Sellers as joint tenants with full rights of survivorship and not as tenants in common; and Buyers, in the event of the death of either Seller, agree to pay any balance of the price due Sellers under this contract to the surviving Seiler and to accept a deed from the surviving Seller consistent with paragraph 11. 13. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a titleholder immediately preceding acceptance of this offer, executes this contract only for the purpose of relinquishing all rights of dower, homestead and distributive shares or in compliance with Section 561.13 of the Iowa Code and agrees to execute the deed or real estate contract for this purpose. 14. TIME IS OF THE ESSENCE. Time is of the essence in this contract. 15. REMEDIES OF THE PARTIES a. If Buyers fail to timely perform this contract, Sellers may forfeit it as provided in the Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty days such failure is not corrected) Sellers may declare the entire balance immediately due and payable. Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver. b. If Sellers fail to timely perform this contract, Buyers have the right to have all payments made returned to them. c. Buyers and Sellers 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 attorney fees as permitted by law. 16. STATEMENT AS TO LIENS. If Buyers intend to assume or take subject to a lien on the Real Estate, Sellers shall furnish Buyers with a written statement from the holder of such lien, showing the correct balance due. 17. SUBSEQUENT CONTRACT. Any real estate contract executed in performance of this contract shall be on a form of the Iowa State Bar Association. 18. APPROVAL OF COURT. If the sale of the Real Estate is subject to Court approval, the fiduciary shall promptly submit this contract for such approval. If this contract is not so approved, it shall be void. 19. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. 20. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. 21. TIME FOR ACCEPTANCE. If this offer is not accepted by Sellers on or before January 28 1997 it shall become void and all payments shall be repaid to the Buyers. 22. OTHER PROVISIONS. Attach Addendum. ////1/1 7 • l r Y N tt Ui a &IAavvr Wil ivY/' ?I rc;.-_ Buyer G• r ' ✓ Buyer Dated: THIS OFFFER IS ACCEPTED , 19 Sel er Spouse . • Seller. Spouse