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Klauer purch Rhomberg & HawthorMEMORANDUM May 27, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Sale of City Lot 319 of Ham's Addition A request has been received from Randall J. Klauer to pumhase Lot 319 of Ham's Addition, which is located on the corner of Rhomberg Avenue and Hawthorne Street and adjoins the Point Restaurant property recently acquired by Mr. Klauer. Finance Director Ken TeKippe states the city has no plans for the utilization of Lot 319 of Ham's Addition, except for reserving the utility easements as noted, recommends sale of the property for a purchase pdce of $10,000, plus publication and filing fees and that Mr. Klauer pay for any costs for survey and plat of the lot. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Ken TeKippe, Finance Director CITY OF DUBUQUE, IOWA MEMORANDUM TO:Michael C. Van Milligen, City Manager FROM:Ken TeKippe, Finance Director SUBJECT: Sale of City Lot 319 of Ham's Addition DATE: May 27, 2003 INTRODUCTION Randall J. Klauer has requested to purchase Lot 319 of Ham's Addition owned by the City of Dubuque. The lot size is approximately 50' x 127' and is located on the corner of Rhomberg Avenue and Hawthorne Street and adjoins the Point Restaurant property recently acquired by Mr. Klauer. DISCUSSION The attached vicinity map shows the proposed area to be purchased. The adjoining property is utilized for the Point Restaurant and is currently being renovated and expanded. Lot 319 would provide additional space to expand for parking for Mr. Klauer. An appraisal from Kane Appraisal was requested for the property and showed a value of $22,000. After reviewing the appraisal with City personnel and Mr. Klauer, it was determined that a second appraisal would be solicited. Felderman Appraisals determined a value of $9,525. in reviewing both appraisals, the second appraisal appears to be more in line with fair market value. Copies of the appraisals are available for review if desired. Mr. Klauer's offer is for the value established by the second appraisal plus approximately 50% of the cost of the two appraisals. Mr. Klauer will incur approximately $1,500 for surveying and platting of the property. The sale of the property would eliminate ongoing maintenance of the area by City personnel and put the property on the tax rolls. A copy of Mr. Klauer's offer is attached. In addition a letter from John H. (Jack) Rhomberg, Agent for the Aspermont Company, which indicated no objection to the sale, is attached. Based on all of the information, I believe Mr. Klauer's offer is fair. Due to the size and very limited potential use of the property, there would most likely not be any other interested parties. Normally, the City disposes of property to adjoining property owners if property is not needed for City purposes. RECOMMENDATION The City has no plans for the utilization of Lot 319 of Ham's Addition except for reserving the utility easements as noted. I would recommend that a public hearing be set for the disposition of the City's interest in Lot 319 of Ham's Addition on June 2, 2003. I would further recommend that the purchase price be established at $10,000, plus publication and filing fees, and that Mr. Klauer pay for any costs for survey and plat of the lot. ACTION TO BE TAKEN The recommendation of the City Manager should be approved and a public hearing should be scheduled on the sale of the property by adoption of the enclosed resolution. Thank you for your assistance. KT/jg Enclosures RESOLUTION NO. 187-03 RESOLUTION OF INTENT TO DISPOSE OF INTEREST IN LOT 2 OF 319 OF HAM'S ADDITION, DUBUQUE, IOWA Whereas, the City of Dubuque is the owner of Lot 2 of 319 of Ham's Addition in the City of Dubuque, Iowa; and Whereas, Randall J. Klauer has requested to purchase Lot 2 of 319 of Ham's Addition from the City of Dubuque: and Whereas, the City Council of the City of Dubuque, Iowa has determined that Lot 2 of 319 of Ham's Addition is no longer required for public use, and that the sale of Lot 2 of 319 of Ham's Addition in the City of Dubuque, Dubuque County, iowa should be approved on the terms and conditions set forth below. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque intends to dispose of its interest in Lot 2 of 319 of Ham's Addition in the City of Dubuque, Iowa, by sale to Randall J. Klauer. Section 2. That the conveyance of Lot 2 of 319 of Ham's Addition in the City of Dubuque, iowa, subject to easements of record, to Randall J. Klauer be contingent upon the payment of $10,000, plus publication and filing fees, and payment by Mr. Kiauer of any costs for survey and plat of the lot. Section 3. The City Clerk is hereby authorized and directed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the City's intent to dispose of the foregoing-described real property, to be held on the 2nd day of June , 2003, at 6:30 o'clock p.m. at the public library auditorium, 11th& Locust, Dubuque, Iowa. Passed, approved and adopted this 2nd day of June ,2003. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk SITE LOCATION MAP PURPOSE: Klauer Disposal Showing the Spirit NOT TO SCALE NORTH Randall J. Klauer 980 Valentine Drive Dubuque, Iowa 52003 May 8, 2003 Kenneth J. TeKippe, CPA City of Dubuque Finance Department 50 West 13th Street Dubuque, Iowa 52001-4864 RE: Offer to Purchase: Lot 319, Ham's Addition From the City of Dubuque Dear Mr. TeKippe, I have recently purchased an existing Restaurant facility previously known as the Point Drive Inn at 2370 Rhomberg Avenue in Dubuque. I am currently in the preliminary stages of expanding and renovating the facility to provide a much needed and desired dining facility at the Northern "Point Area" of the city. The facility is on leased land, specifically Lots 316, 317, and 318 of Ham's Addition in the City of Dubuque, owned by The Aspermont Company. I have a recorded "Land Lease with Option to Purchase" for the property from Aspermont. The adjoining property, Lot 319 of Ham's Addition is currently owned and maintained by the City of Dubuque. I am interested in acquiring Lot 319 from the City of Dubuque for the proposed renovated and expanded facility. It is my understanding that the City of Dubuque's standard policy for land vacation is to provide first Option to Purchase" to adjoining property owners. Due to the nature of my current Lease with Option to Purchase, I ' request acceptance and approval of my offer to purchase LOt 319. In addition, I have obtained full approval and support of my Lessor, the Aspermont Company, as indicated in the attached letter from John H. (Jack) Rhomberg; Agent for The Aspermont Company. I have had the oppommity to review recent appraised values of Lot 319 and comparable land purchases. Upon review of Lot 319 criteria, appraisals, and recorded documents, the following conclusions have been assessed: Usable square footages for possible development is significantly limited by: a) utility easements, b) setback requirements due to adjoining property zoning, c) easement required by the City of Dubuque for accessibility, d) encroachments by street modifications. It is concluded that the property is virtually incapable of structural development. It is reasonable to assme that the only developable use of Lot 319 is parking, and development for any other use is unreasonable. In addition, as requested by the City, the lot will require replotting to allow the Northeasterly comer of the parcel to remain titled to the City for street modifications previously made at the comer of Rhomberg and Hawthorn Streets. Also a recorded easement has been requested by the Municipal Water Department at the Southern portion of the lot for access to "Pump #5". This Offer to Purchase is in consideration of the following determining factors: 1) Usable area and available uses for development of Lot 319. 2) Expenses incurred by the buyer to replot the lot to incorporate street developments. 3) Costs incurred to provide and record the easements as requested for City accessibility. 4) Comparable land square foot price purchases recorded. I propose a reasonable purchase price with these factors considered to be $10,000.00. The City of Dubuque shall increase its tax base by the acceptance of my proposal and Offer to Purchase, as well as eliminate maintenance expenses and liabilities incurred by the City of Dubuque. I respectfully request your approval and ask for your recommendation to the City Manager and City Council to vacate Lot 319 of Ham's Addition and accept my Offer to Purchase for the proposed price of $10,000.00. Sincerely, Randall J. Klauer, Owner Point Restaurant Inc. The Aspermont Company John H. (Jack) Rhomberg, Agent 1008 Clark Crest Ct. Dubuque, Iowa 52001 April 28, 2003 City of Dubuque Finance Dept. Atto: Kenneth J. TeKippe, Finance Director City Hall, 50 West 13th Street Dubuque, Iowa 52001-4864 RE: Lot #319 of Hams Add, City of Dubuque Dear Mr. TeKippe, The Aspermont Company currently holds title to Lots #316, 317, & 318 of Hams Addition in the City of Dubuque. Randall J. Klauer currently maintains a recorded "Lease with Option to Purchase" from The Aspermont Company for Lots #316, 317, & 318 of Hams Addition in the City of Dubuque. Mr. Klauer has expressed his interest in acquiring Lot #319 Hams Add., the adjoining parcel of property, from the City of Dubuque. As Agent for The Aspermont Company, the current adjoining property owner to Lot #319 Hams Addition in the City of Dubuque, I would like to express that The Aspermont Company has no objection to, and support the acquisition of Lot #319 Hams Add. by Mr. Klauer. Sincerely, John H. (Jack) Rhomberg, Agent The Aspermont Company,