Sale of City-Owned Property at 799 Rush Street Copyrighted
September 16, 2019
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Sale of City-Owned Property at 799 Rush Street
SUMMARY: City Manager recommending that the City Council set a
public hearing for October 7, 2019 on the intent to dispose
of 799 Rush Street to the abutting property owners, Eric
and Beth Hemmer, for consolidation into one parcel.
RESOLUTION of 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
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for October 7, 2019
ATTACHMENTS:
Description Type
Intentto Dispose of 799 Rush Street-MVM Memo City Manager Memo
Staff Memo Staff Memo
Set Public Hearing Resolution Resolutions
Notice of Hearing Supporting Documentation
Offer to Buy Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set Public Hearing for the Sale of City-Owned Property at 799 Rush Street
DATE: September 12, 2019
Housing and Community Development Director Alexis Steger recommends the City
Council set a public hearing for October 7, 2019 on the intent to dispose of 799 Rush
Street to the abutting property owners, Eric and Beth Hemmer, for consolidation into
one parcel.
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
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: Set Public Hearing for the Sale of City-owned Property at 799 Rush Street
DATE: September 11, 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 799 Rush Street.
Discussion
The City acquired 799 Rush Street by petition as an abandoned property for the purpose
of deconstruct the structure and selling the lot to an abutting property owner. During the
petition process, this property was in such disrepair that it became a dangerous structure.
The house and garage structure on the property started falling, and became very unstable.
Numerous complaints from neighbors and passerby's were taken in regards to this
property, consuming large amounts of City Staff time. In the FY 2019 budget, the City
Council approved the funds to deconstruct 799 Rush Street, and sell it to the abutting
property owner.
Eric and Beth Hemmer are the abutting property owners and the intention is to consolidate
both the existing parcel at 795 Rush Street and 799 Rush Street into one parcel. The
Engineering Department will survey the properties to accomplish the consolidation and
recording of one parcel, eliminating 799 Rush Street address.
Recommendation
I respecffully request the City Council conduct a public hearing on October 7�h, 2019 for
the intent to dispose of 799 Rush Street to the abutting property owner for consolidation
into one parcel.
Cc: Crenna Brumwell, City Attorney
RESOLUTION NO. 339-19
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 799 Rush Street (the Property)
legally described as:
Lot 1 of the Subdivision of Lot 2 of the South 165 feet of Lot 190 in Union
Addition to the City of Dubuque, Dubuque County, Iowa, according to the
recorded plat thereof; and
WHEREAS, the City acquired the Property by petition as an abandoned property for
the purpose of demolishing the structure and selling the lot to an abutting property owner;
and
WHEREAS, Eric and Beth Hemmer are the abutting property owners and the intention
is to consolidate both the existing parcel at 795 Rush Street and the Property into one
parcel.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That 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 7th day of October 2019 beginning at 6:00 p.m.
Section 2. That 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 16th day of September 2019.
ATTEST:
K9n S. Firnstah1, City Clerk
(1- Roy D. Buol, Mayor
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, lowa, will
hold a public hearing on the 7�h day of October, 2019, at 6:00 p.m. in the Historic Federal
Building, 350 West Sixth Street, 2"d floor, Dubuque, lowa, at which meeting the City
Council proposes to dispose of an interest in the following described real property by sale
to Eric and Beth Hemmer:
Lot 1 of the Subdivision of Lot 2 of the South 165 feet of Lot 190 in Union Addition
to the City of Dubuque, Dubuque County, lowa, according to the recorded plat
thereof. (799 Rush Street)
At the meeting, the City Council will receive oral and written comments from any resident
or property owner of said City to the above action. Written comments regarding the above
public hearing may be submitted to the City Clerk's Office, City Hall, 50 W. 13�h Street, on
or before said time of public hearing.
Copies of supporting documents for the public hearings are on file in the City Clerk's
Office, and may be viewed during normal working hours.
Any visual or hearing impaired persons needing special assistance or persons with
special accessibility needs should contact the City Clerk's Office at (563) 589-4120 or
TTY (563) 556-9948 at least 48 hours prior to the meeting.
Dated this_ day of , 2019
Kevin S. Firnstahl, CMC
City Clerk
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: City of Dubuque, Iowa, 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, Iowa, locally known as 799 Rush Street, Dubuque, IA 52001
and legally described as:
Lot 1 of the Subdivision of Lot 2 of the South 165 feet of Lot 190 in Union Addition
to the City of Dubuque, Dubuque County, Iowa, 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 ten thousand dollars
($10,000.00).
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 agrees 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
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same.
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 September 30, 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, Iowa law, and title
standards of the Iowa 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
Iowa 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
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permitted by Buyer.
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.
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 forfeit it as provided in the
Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty (30)
days written notice of intention toaccelerate 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. Thereafter this 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.
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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
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.
Eric & Beth Hemmer
795 Rush Street
Dubuque, IA 52001
City of Dubuque
Attn: Alexis Steger
50 W. 13th Street
Dubuque, IA 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 August 28, 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, Iowa in its sole discretion. If the City Council of the City of Dubuque, Iowa 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 Seller, within ninety (90) days of Closing, must complete a survey and replat the
Real Estate to combine the Real Estate with Buyer's property legally described as
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Lot 1 of the Subdivision of the Southerly 165 feet of Lot 190 in Union Addition to
the City of Dubuque, Iowa, according to the recorded plat thereof
known locally as
795 Rush Street, Dubuque, Iowa
which consolidates the two parcels into a single parcel.
25.3 Buyer agrees, within one -hundred twenty (120) days of the Closing to file a
restrictive covenant indicating the single consolidated parcel of Real Estate must remain
a single-family home, for twenty-one (21) years.
25.4 Seller shall provide Buyer a copy of the consolidated plat and Buyer shall provide
Seller a copy of the restrictive covenant.
25.5 The terms of the Contract Agreement attached to this Offer to Buy are hereby
incorporated.
25.6 The terms of Section 25 shall in all respects survive the closing.
SELLER BUYER
CITY OF DUBIQUE, IOWA ERIC & BETH HEMMER
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By: I
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Roy D. Buol, pyor
By:
Eric A. Hemmer
By:
Beth R. Hemmer
Dated: September 16, 2019 Dated:
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