Purchase of Property_3301 Roosevelt StreetMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Property at 3301 Roosevelt Street
CIP #740 -1672 - Fund Balance $42,068
DATE: March 25, 2010
Dubuque
kittld
All- AmaicaCity
2007
Water Department Manager Bob Green recommends City Council approval to purchase
a 1.3± acre site located at 3301 Roosevelt Street, for the proposed construction of a
water tower.
The City had an appraisal prepared by Kane Appraisals for a proposed one -acre site at
the northwest corner of the Fondell Excavating, Inc. property on Roosevelt. This
appraisal valued the property at $10,500 per acre. Fondell had an offer from a
developer, Curtis McDonald of McDonald Properties, LLC, for the entire 18 -acre parcel
valued at $13,500 per acre.
Additionally, developer McDonald had indicated the proposed water tower would have a
"substantial negative impact on the development" and therefore terminated the offer to
purchase the property from Fondell. Negotiations continued with Fondell to address the
concerns of developer McDonald. These negotiations resulted in an acceptable
agreement with both Fondell and developer McDonald and are as follows:
1. Purchase of the 1.3± acre tower site at $13,500 /acre. $ 18,117
2. Reimburse the developer of the site for one half of the cost of construction of 15,000
the streets abutting the tower site.
3. Reimburse the developer for providing storm sewer piping to the tower site. 3,000
4. Furnish watermain pipe, valves and fittings for that area abutting the tower site. 7,400±
(Developer to install at their expense.)
5. Reimburse the seller for platting expenses for the tower site. 2,000
TOTAL ESTIMATED EXPENSE $45,517±
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Bob Green, Water Department Manager
Michael C. Van Milligen
THE CITY OF
Der
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Bob Green, Water Department Manager �---
DATE: March 9, 2010
SUBJECT: Purchase of Property at 3301 Roosevelt Street —
CIP #740 -1672 — Fund Balance $42,068
INTRODUCTION
The purpose of this memorandum is to request the City Council's approval to purchase
a 1.3± acre site located at 3301 Roosevelt Street, for the proposed construction of a
water tower.
BACKGROUND
The Fiscal Year 2010 CIP has allocated $42,068 for acquisitions.
Dubuque
*L meda y
2007
A water distribution report prepared in 1992 identified an area on top of the hill at the
bend on Roosevelt Street near the southeast corner of the McDonald Estate and in the
Southwest corner of the Orchard Hills Subdivision as an ideal location for a future water
tower. A more detailed study prepared in 2002 by IIW Engineers & Surveyors, PC
narrowed the site selection to a 1- to 1.5 -acre site on property then owned by Arnie Van
Etten, currently owned by Fondell Excavating, Inc. (Fondell).
The Water Department began negotiations with Arnie Van Etten in 2003 for an area for
the water tower site. In 2006 Van Etten sold the entire 18 -acre parcel to Fondell who
was developing an abutting parcel (Eagle Valley Subdivision) just south of the Van
Etten property. The City began conversations with Fondell in 2008 for purchase of
property for the tower. In May of 2009 Curtis McDonald of McDonald Properties, LLC
(McDonald) of Fairfield, Iowa, began negotiations with Fondell to purchase the property.
DISCUSSION
The City had an appraisal prepared by Kane Appraisals for a proposed one -acre site at
the northwest corner of the Fondell property. This appraisal valued the property at
$10,500 per acre. Fondell had an offer from McDonald for the entire 18 -acre parcel
valued at $13,500 per acre.
Additionally, developer McDonald had indicated the proposed water tower would have a
"substantial negative impact on the development" and therefore terminated the offer to
purchase the property from Fondell. Negotiations continued with Fondell to address the
concerns of developer McDonald. These negotiations resulted in an acceptable
agreement with both Fondell and developer McDonald and are as follows:
1. Purchase of the 1.3± acre tower site at $13,500 /acre. $ 18,117
2. Reimburse the developer of the site for one half of the cost of construction of 15,000
the streets abutting the tower site.
3. Reimburse the developer for providing storm sewer piping to the tower site. 3,000
4. Furnish watermain pipe, valves and fittings for that area abutting the tower site. 7,400±
(Developer to install at their expense.)
5. Reimburse the seller for platting expenses for the tower site. 2,000
TOTAL ESTIMATED EXPENSE $45,517±
BUDGET IMPACT
Water main materials ($7,400 +) are currently in stock and will be provided to the
developer at such time they are required.
Available cash funds:
CIP #740 -1672
Fund Balance
$ 42,068
Expense Required
$ 38,117
CONCLUSION
The terms of the agreement have been accepted by Fondell and are agreeable to the
developer McDonald.
ACTION TO BE TAKEN
Staff and I are requesting your approval and signature to the terms of this agreement
and City Council approval of the attached Resolution in accepting the Warranty Deed of
such time it is provided.
Staff and l are available at your discretion to discuss and answer questions you may
have.
cc: Tim O'Brien, Assistant City Attorney
Ron Turner, PLS
Prepared by: Ronald J. Turner, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589 -4270
Return to: Ronald J. Turner, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589 -4270
RESOLUTION NO. 91-10
ACCEPTING THE WARRANTY DEED TO PART OF LOT 1 OF LOT 2 OF LOT 2 OF
MINERAL LOT 311 IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA, FROM
FONDELL EXCAVATING, INC. OF DUBUQUE, IOWA.
Whereas, the City of Dubuque has entered into an agreement with Fondell
Excavating, Inc. to purchase part of Lot 1 of Lot 2 of Lot 2 of Mineral Lot 311 in the City
of Dubuque, Dubuque County, Iowa, as shown on the attached Plat (Exhibit A) thereof
for a new water tower site; and
Whereas, all of the terms and conditions of the agreement have been satisfied.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Warranty Deed from Fondell Excavating, Inc. attached
hereto is hereby accepted.
Section 2. That the City Clerk is hereby authorized and directed to cause the
Warranty Deed to be recorded in the office of the Dubuque County Recorder, together
with a certified copy of this Resolution.
Att
Passed, approved and adopted this 5 th day of April 2010.
eanne F. Schneider, CMC, City Clerk
Roy D. Buol, Mayor
7
Prepared by: James A. O'Brien, Assistant City Attorney, 300 Main St. Dubuque, IA 52001 563- 589 -4113
Return to: Ron Turner, City Engineering, 50 W. 13 Street. Dubuque, IA. 52001 563- 589 -4270
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: Fondell Excavating, Inc. (Seller)
SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer)
offers to buy real estate in Dubuque County, Iowa, described as follows:
A 1.34 acre parcel, more or less, as shown on Exhibit A attached, being a
part of Lot 1 of Lot 2 of Lot 2 of Mineral Lot 311 in the City of Dubuque,
Dubuque County, Iowa, commonly known as 3301 Roosevelt St., Dubuque,
Iowa (the Real Estate).
SECTION 2. PRICE. The purchase price for the lot platted for the tower site shall be
$18,117.00, payable to Fondell Excavating, Inc. in cash at closing. The closing shall be
on or before June 1, 2010, or on approval of the acquisition plat, whichever is later.
SECTION 3. REAL ESTATE TAXES. Seller shall pay all real estate taxes payable for
the fiscal year in which the closing takes place and prorated to the date of possession and
any unpaid real estate taxes for prior years. Buyer shall pay all subsequent real estate
taxes.
SECTION 4. POSSESSION. If Buyer timely performs all obligations, possession of the
Real Estate shall be delivered to Buyer on the date of closing, with any adjustments of
rent, insurance, and interest to be made as of the date of transfer of possession.
SECTION 5. USE OF PURCHASE PRICE. At the 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 6. ABSTRACT AND TITLE. Seller, at Seller's 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 Buyer for examination. It shall show merchantable title in Seller
in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar
Association. The abstract shall become the property of the Buyer when the purchase
price is paid in full or the Seller shall furnish a new abstract for the property to the Buyer.
SECTION 7. DEED. Upon payment of the purchase price, Seller shall convey the Real
Estate to Buyer by Warranty Deed, free and clear of all liens, restrictions, and
encumbrances. Any general warranties of title shall extend only to the time of acceptance
of this offer, with special warranties as to acts of Seller continuing up to time of delivery of
the deed.
SECTION 8. TIME IS OF THE ESSENCE. Time is of the essence in this Contract.
SECTION 9. REMEDIES OF THE PARTIES.
9.1 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
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) 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.
9.2 If Seller fails to timely perform this Contract, Buyer has the right to have all
payments made returned to it.
9.3 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 10. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This
Contract shall apply to and bind the successors in interest of the parties.
SECTION 11. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or
before March 5, 2010, it shall become void and all payments shall be repaid to the Buyer.
SECTION 12. RIGHTS OF INSPECTION, TESTING AND REVIEW. Buyer, its
counsel, accountants, agents and other representatives, shall have full and continuing
access to the Real Estate and all parts thereof, upon reasonable notice to Seller. Buyer
and its agents and representatives shall also have the right to enter upon the Real
Estate at any time after the execution and delivery hereof for any purpose whatsoever,
including inspecting, surveying, engineering, test boring, performance of environmental
tests and such other work as Buyer shall consider appropriate, provided that Buyer shall
hold Seller harmless and fully indemnify Seller against any damage, claim, liability or
cause of action arising from or caused by the actions of Buyer, its agents, or
representatives upon the Real Estate (except for any damage, claim, liability or cause of
action arising from conditions existing prior to any such entry upon the Real Estate), and
shall have the further right to make such inquiries of governmental agencies and utility
companies, etc. and to make such feasibility studies and analyses as it considers
appropriate.
12.1. Environmental Condition. Seller warrants to the best of its knowledge and belief
2
that there are no wells, solid waste disposal sites, hazardous wastes or substances,
underground storage tanks or burial sites located on the Real Estate. Seller further
warrants that, Seller has done nothing to contaminate or allow the contamination of the
Real Estate and has no knowledge of any contamination. Seller warrants that the Real
Estate is not subject to any local, state, or federal judicial or administrative action,
investigation or order regarding its environmental condition or environmental
compliance. Seller shall provide Buyer with a properly executed Groundwater Hazard
Statement showing no wells, solid waste disposal sites, hazardous wastes,
underground storage tanks and private burial sites on the Real Estate, which shall be
considered a warranty and representation by Seller to Buyer.
Buyer shall have the right to inspect the Real Estate prior to the closing and to take
whatever tests or perform such examination, as Buyer shall deem appropriate, at its
own risk and its sole cost and expense, to evaluate the environmental condition of the
Real Estate and allow Seller to make the environmental determinations required herein.
Prior notice of such activity by Buyer shall be provided to Seller and written results of
such activity shall be shared with Seller. In the event any adverse environmental
condition is discovered or suspected on, at, under, or about the Real Estate, Buyer's
obligation hereunder shall be contingent upon the resolution of the environmental
condition by Seller in a manner satisfactory to Buyer, in its sole discretion. Buyer shall
have the option to cancel this transaction and declare this Agreement null and void.
Seller shall fully cooperate with Buyer and /or Buyer's representative in the
environmental assessment and investigation.
12.2. Release of Reports and Data. Within five (5) days of the date of this Agreement,
Seller shall provide to Buyer copies of any and all reports, correspondence, sampling or
monitoring results related to the environmental condition of the Real Estate.
SECTION 13. VIOLATIONS OF REGULATIONS. Seller warrants that there are no
notices, orders, suits, judgments or other proceedings relating to fire, building, zoning,
air pollution, health violations or other matters that have not been corrected. Seller has
notified Buyer in writing of any past notices, orders, suits, judgments or other
proceedings relating to fire, building, zoning, air pollution or health violations as they
relate to the Real Estate of which it has actual notice.
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. UNDERGROUND STORAGE TANKS. Seller warrants and
represents that there are no underground storage tanks or piping on or in the Real
Estate and that all such tanks and piping have been removed according to applicable
state regulations.
SECTION 16. 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.
3
SECTION 17. OTHER PROVISIONS.
17.1 This Offer is subject to the approval of the City Council of the City of Dubuque,
Iowa.
17.2 An additional amount of $15,000.00 representing an agreed upon cost for one half
of the pavement abutting the tower lot. This will be payable to the Seller or Seller's
assignees after acceptance of the public roadway improvements by City Council.
17.3 An additional amount of $3,000.00 representing an agreed upon cost for furnishing
storm sewer pipe adequate to serve the water tower lot. This will be payable to the Seller
or Seller's assignees after acceptance of the storm sewer improvements by City Council.
17.4 The City will furnish all pipe, valves, fittings and incidental materials, except
concrete blocking, for the installation of appropriate sized water main from Roosevelt
Street to proposed Street B all to be installed by the Seller or Seller's assignees in the
roadway(s) abutting the tower site at the time of construction of the water main. (See
attached Exhibit B) City shall be given 30 days advance notice of such construction.
17.5 The Real Estate shall be platted at Seller's expense and Buyer agrees to pay Seller
$2,000.00 at closing for platting expenses. Buyer and Seller agree to cooperate in
securing approval of the platting.
17.6 All representations set forth in this agreement shall survive the closing and transfer
of title of the Real Estate,
17.7 Seller's rights under this agreement may be assigned subject to the assignee's
assumption of the Seller's obligations under this agreement.
CITY OF DUBUQUE, IOWA
By:
Michael C. Van Milligen, City Manager
Dated:
THIS OFFER IS ACCEPTED
Fondell Excavating, Inc.
By:
James Kemp, P sident
Dated: sg/a2,/,.) p/p
4
STATE OF IOWA, COUNTY OF DUBUQUE, ss:
On this day of February, 2010, before me, the undersigned, a Notary Public in
and for the said State, personally appeared Michael C. Van Milligen , to me
personally known, who being by me duly sworn, did say that he is the City Manager
of the City of Dubuque, Iowa which executed the within and foregoing instrument to
which this is attached; that the instrument was signed on behalf of the City of
Dubuque, Iowa by authority of its City Council; and that Michael C. Van Milligen as
said officer acknowledged the execution of the foregoing instrument to be the
voluntary act and deed of the corporation, by it and by him voluntarily executed.
STATE OF IOWA, COUNTY OF DUBUQUE, ss:
On this. ,A40 day of March, , 2010, before me, the undersigned, a Notary Public
in and for the said State, personally appeared James Kemp, to me personally
known, who being by me duly sworn, did say that he is the President of Fondell
Excavating, Inc which executed the within and foregoing instrument to which this is
attached, that no seal has been procured by the said corporation; that the instrument
was signed on behalf of the corporation by authority of its Board of Directors; and
that James Kemp as President acknowledged the execution of the foregoing
instrument to be the voluntary act and deed of the corporation, by it and by him
voluntarily executed.
JOAN M. SCHMITT
Commission Number 175280
My Comm. Exp.'7 .74 iz
5
Notary Public in and for said State.
L ^^ 12,17 7
9%) � Ai
Notary Public in and for said State.
(2/12/2010) Tim O'Brien - roosevelt exhibIt,pdf
LOT 20
61980
IrICT
5045s I
' PR
5L
1
joa ,--7,00 700
a' l o s
v—M ?
.441L.M11.11
.. ••••■W
1.6.5
LOT 6
r 5 L 0 (:) 4 1 5 - :4 i --
a'1. 5 4) 0.1j1-•
---------
4
LOT 16
JAP;5ii 1,504S-si
•
5045,1
••• :::4— Glen /21
EXHIBIT A
Roosevelt Tower Site
1 -r` ,`"i
1, 1/ I I ( ,i''' 82 - 5 ' 1 5,' ,'
• 11,1 '' /1---- - .."-- k'
li , / ...• • -7-- •-taa ---- .r: c
''' i ,i c 1 ' _ i 1 2I
---J , , 1 , 1LOTt 2 __ — ■ W I
; ------------- `, 15, —mg ,-
eLocKi' ' • ••p qq
.,,_ ,,,
'1100103001
4114.11,0000, in.
/Downy, Mervin M.
71 \
651 i• LOT
1
'if lg. •
2
dr Jan.
LOT 1 \
32.1rta
f AM 1
TINUE LOT
0.;.:21.41,L141/ iitt■
C. 7 '
50451 / y22 ir • t
----- •
„
"
1 1 1 4T ; '
1 LOT 3 / .'.4-°T6.-
I
1 ■ re, :nd ' ' / 1 5f! ' :1/ 1° ?: *, ■ ' 11
1.„.,,,I , j 70 pe.,,,..), 1.6 OPS , 7 • ct.:....1 1 2,,,“
/.E.1 1 1 , ' ". 6 r• .
z _ _ ,:- . - ,>: ■ , ‘ze ,, Per m 1 , ,' • .: .: it I
I< i rA ‘1 k W
ALLEY _I \ i ‘,
Page 1
Exhibit B
The following is a description of the items proposed to be furnished
by the City for the installation of water main in the proposed public
streets abutting the 1.3 acre water tower site on part of Lot 1 of Lot 2
of Lot 2 of Mineral Lot 311 in the City of Dubuque, Iowa. This list is
subject to final design review and approval by the Water Department.
12" DIP CL52 w/. polywrap - 240'
8" DIP CL52 w/. polywrap - 270'
12 X 12 tee MJ - 4
8 X 8 Anchoring tee MJ - 1
12" valve MJ - 4
8" valve MJ - 1
12" mega lug - 12
12" gripper gasket - 4
12" plug MJ - 1
12 X 8 reducer MJ - 2
8" dia. 45 deg bend MJ - 1
12" dia 45 deg bend MJ - 1
tracer wire - 510'
tracer wire box - 2
valve box w/. lid - 5
valve adaptor - 5