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,