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Property Acquisition - 6400 Pennsylvania Avenue_Heins Copyrighted J uly 20, 2020 City of Dubuque Consent Items # 7. City Council Meeting ITEM TITLE: PropertyAcquisition -6400 PennsylvaniaAvenue SUM MARY: City Manager recommending approval to acquire residential property at 6400 Pennsylvania Avenue owned by Mark and Kimmie Heins for the future widening of Pennsylvania Avenue— Middle Road. RESOLUTION Approving the acquisition of real estate owned by Mark and Kimmie Heins in the City of Dubuque SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type 6400 Pennsylvania Avenue Acquisition-MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Purchase Agreement- Partially Executed Supporting Documentation Dubuque THE CITY OF � ui-Aseria cih DuB E , . � . , � II � Maste iece on tj2e Mississi i zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Property Acquisition - 6400 Pennsylvania Avenue DATE: July 15, 2020 City Engineer Gus Psihoyos recommends City Council approval to acquire residential property at 6400 Pennsylvania Avenue for $211,500 owned by Mark and Kimmie Heins for the future widening of Pennsylvania Avenue — Middle Road. I concur with the recommendation and respectfully request Mayor and City Council approval. � Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Dubuque THE CITY OF � All•pmerica Ci$ Du 8 E v��h.�� . r , � �����, I I MRste iece on the MisSiSsi i zoo�•zoiz=zois � pp zoi�*zot� TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer DATE: July 9, 2020 RE: Property Acquisition — 6400 Pennsylvania Avenue INTRODUCTION The purpose of this memorandum is to request City Council approval to acquire property at 6400 Pennsylvania Avenue owned by Mark and Kimmie Heins for the future widening of Pennsylvania Avenue - Middle Road. BACKGROUND The Dubuque Industrial Center Economic Development District was created on May 2, 1988. The District is an urban renewal area which allows the City of Dubuque to capture tax increment revenue from improvements made in the District in order to promote economic development activities. This parcel would become available for future reconstruction of Pennsylvania Avenue and the ability to widen the roadway for potential development of the industrial park. DISCUSSION The purchase price was arrived a certified appraisal for the property. The final agreed price was $211,500. The house will be deconstructed or moved. The first option would be to take bids to purchase the home with the stipulation that it be moved to a new location. If no bids are received, then the next option would be to bid the home for deconstruction. Attached is the signed Offer to Buy Real Estate and Acceptance (the Offer) for the Heins residential property. RECOMMENDATION I recommend that the City acquire the residential property at 6400 Pennsylvania Avenue per the terms of the attached Offer. BUDGETIMPACT The purchase will be funded from the Future Industrial Acquisitions (3602437). ACTION TO BE TAKEN I respectfully request adoption of the attached resolution approving the Offer and authorizing acceptance of the Warranty Deed and any other related steps necessary to carry out the terms of the Offer. cc: Jenny Larson, Budget Director Jill Connors, Economic Development Director Nate Kieffer, PLS Nathan Steffen, Civil Engineer I 2 Prepared by Gus Psihoyos, City Engineer, 50 W. 13th St., Dubuque IA 52001, 563-589-4276 Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100 RESOLUTION NO. 208-20 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY MARK AND KIMMIE HEINS, IN THE CITY OF DUBUQUE Whereas, the Dubuque Industrial Center Economic Development District is an urban renewal area which allows the City of Dubuque to capture tax increment revenue from improvements made in the District in order to promote economic development activities; and Whereas, the City of Dubuque intends to expand the Dubuque Industrial Center Economic Development District; and Whereas, the proposed expansion and amendment of the Dubuque Industrial Center Economic Development District will result in acquisition of certain real estate, namely 6400 Pennsylvania Avenue; and Whereas, Mark and Kimmie Heins (the Owners) of this certain real estate have voluntarily agreed to sell to the City of Dubuque the certain real estate legally described as follows (the Property): Lot 2 of Lot 2 of the NE'/ of the NE 1/4 of Section 30, T89N, R2E of the 5th P.M., according to the recorded plat thereof. ;and Whereas, acquiring the Property will allow expansion of the Dubuque Industrial Center Economic Development District; and Whereas, the acquisition of this real estate is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, the Owners have agreed to sell the Property for a total cost of $211,500; and Whereas, a purchase agreement and acknowledgment of voluntary negotiation have been finalized with the Owners of the real estate scheduled for acquisition; and Whereas, it is in the best interest of the City to acquire the Property, subject to review of the updated abstract and title opinion by the City Attorney's Office. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council of the City of Dubuque, Iowa hereby approves the Offer to Buy Real Estate and Acceptance attached hereto subject to review of the updated abstract and title opinion by the City Attorney's Office. Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Passed, approved and adopted this 20th day of July 2020. Attest: Kevir(S'. Firnstahlf, City Clerk OLJ Roy D. Buol, Mayor `rr$� WARRANTY DEED Return to: City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 Taxpayer: City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 Preparer: Jeffrey E. Hiatt, 2080 Southpark Court, Dubuque, Iowa 52003, Phone: (563) 582-2926 For the consideration of One ($1.00) Dollar(s) and other valuable consideration, Mark J. Heins and Kimmie J. Heins, husband and wife, V i 110 Doc ID 010594990004 Type GEN Kind: DEED WITH RESOLUTION Recorded: 10/15/2020 at 04:05:27 PM Fee Amt: $364.60 Page 1 of 4 Revenue Tax: $337.60 Dubuque County Iowa John Murphy Recorder Fi1e2020-00015963 0 City of Dubuque do hereby Convey to the following described real estate in Dubuque County, Iowa: Lot 2 of Lot 2 of the NE 1/4 of the NE 1/4 of Section 30, Township 89 North, Range 2 East of the 5th P.M., in the City of Dubuque, Iowa, according to the United States Government Survey and the recorded plats thereof, subject to highway and easements of record. Grantors do Hereby Covenant with grantees, and successors in interest, that grantors hold the real estate by title in fee simple; that they have good and lawful authority to sell and Convey the real estate; that the real estate is free and clear of all liens and encumbrances except as may be above stated; and grantors Covenant to Warrant and Defend the real estate against the lawful claims of all persons except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the real estate. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. Dated on 6 �1 -ao 5, a Mark J. Heins (Grantor) Kimmie J. Heins (Grantor) STATE OF IOWA , COUNTY OF DUBUQUE This record was acknowledged before me on 'r- I is'-0 D-v , by Mark J. Heins and Kimmie J. Heins, husband and wife JEFFREY E. HIATT Commission Number 26 861 My Comm. Exp. be. Signature ofNola.r. Public © The Iowa State Bar Association 2020 Form No. 101, Warranty Deed IowaDocs© Revised February 2019 �; -v� a-e -.b-(c1CkrIc s tom.ce- Prepared by Gus Psihoyos, City Engineer, 50 W. 13th St., Dubuque, IA 52001, 563-589-4276 Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100 RESOLUTION NO. 208-20 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY MARK AND KIMMIE HEINS, IN THE CITY OF DUBUQUE Whereas, the Dubuque Industrial Center Economic Development District is an urban renewal area which allows the City of Dubuque to capture tax increment revenue from improvements made in the District in order to promote economic development activities; and Whereas, the City of Dubuque intends to expand the Dubuque Industrial Center Economic Development District; and Whereas, the proposed expansion and amendment of the Dubuque Industrial Center Economic Development District will result in acquisition of certain real estate, namely 6400 Pennsylvania Avenue; and Whereas, Mark and Kimmie Heins (the Owners) of this certain real estate have voluntarily agreed to sell to the City of Dubuque the certain real estate legally described as follows (the Property): Lot 2 of Lot 2 of the NE % of the NE'/ of Section 30, T89N, R2E of the 5th P.M., according to the recorded plat thereof. ;and Whereas, acquiring the Property will allow expansion of the Dubuque Industrial Center Economic Development District; and Whereas, the acquisition of this real estate is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, the Owners have agreed to sell the Property for a total cost of $211,500; and Whereas, a purchase agreement and acknowledgment of voluntary negotiation have been finalized with the Owners of the real estate scheduled for acquisition; and Whereas, it is in the best interest of the City to acquire the Property, subject to review of the updated abstract and title opinion by the City Attorney's Office. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council of the City of Dubuque, Iowa hereby approves the Offer to Buy Real Estate and Acceptance attached hereto subject to review of the updated abstract and title opinion by the City Attorney's Office. Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Passed, approved and adopted this 20th day of July 2020. e-ti tit Roy D. Buol, Mayor Attest: Key i iS'. Firnstatfl, Cityblerk CERTIFICATE of tie CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 208-20 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 18th day of August, 2020. Kevin S. Firnstahl; CMC, City Clerk 0 0 Doc ID: 010595000003 Type GWH Kind: GROUNDWATER HAZARD Recorded: 10/15/2020 at 04:05:40 PM Fee Amt: $0.00 Page 1 of 3 Dubuque County Iowa John Murphy Recorder Fi1e2020-00002038 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name Mark J. Heins and Kimmie J. Heins Address 6400 Pennsylvania Avenue, Dubuque, IA 52002 Number and Street or RR City, Town or P.O. State Zip TRANSFEREE: Name City of Dubuque Address 50 W. 13th Street, Dubuque, IA 52001 Number and Street or RR City, Town or P.O. State Zip Address of Property Transferred: 6400 Pennsylvania Avenue, Dubuque, IA 52002 Number and Street or RR City, Town or P.O. State Zip Legal Description of Property: (Attach if necessary) Lot 2 of Lot 2 of the NE 1/4 of the NE 1/4 of Section 30, Township 89 North, Range 2 East of the 5th P.M., in the City of Dubuque, Iowa, according to the United States Government Survey and the recorded plats thereof, subject to highway and easements of record. 1. Wells (check one) _ There are no known wells situated on this property. X There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below or set forth on an attached separate sheet, as necessary. 2. Solid Waste Disposal (check one) X There is no known solid waste disposal site on this property. _ There is a solid waste disposal site on this property and information related thereto is provided in Attachment #1, attached to this document. 3. Hazardous Wastes (check one) X There is no known hazardous waste on this property. There is hazardous waste on this property and information related thereto is provided in Attachment #1, attached to this document. 4. Underground Storage Tanks (check one) X There are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) _ There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are listed below or on an attached separate sheet, as necessary. FILE WITH RECORDER DNR form 542-0960 (July 18, 2012) aoao 5C2 3 5. Private Burial Site (check one) X There are no known private burial sites on this property. _ There is a private burial site on this property. The location(s) of the site(s) and known identifying information of the decedent(s) is stated below or on an attached separate sheet, as necessary. 6. Private Sewage Disposal System (check one) All buildings on this property are served by a public or semi-public sewage disposal system. This transaction does not involve the transfer of any building which has or is required by law to have a sewage disposal system. _ There is a building served by private sewage disposal system on this property or a building without any lawful sewage disposal system. A certified inspector's report is attached which documents the condition of the private sewage disposal system and whether any modifications are required to conform to standards adopted by the Department of Natural Resources. A certified inspection report must be accompanied by this form when recording. There is a building served by private sewage disposal system on this property. Weather or other temporary physical conditions prevent the certified inspection of the private sewage disposal system from being conducted. The buyer has executed a binding acknowledgment with the county board of health to conduct a certified inspection of the private sewage disposal system at the earliest practicable time and to be responsible for any required modifications to the private sewage disposal system as identified by the certified inspection. A copy of the binding acknowledgment is attached to this form. _ There is a building served by private sewage disposal system on this property. The buyer has executed a binding acknowledgment with the county board of health to install a new private sewage disposal system on this property within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. X There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9] This property is exempt from the private sewage disposal inspection requirements pursuant to the following exemption [Note: for exemption #9 use prior check box]: _ The private sewage disposal system has been installed within the past two years pursuant to permit number Information required by statements checked above should be provided here or on separate sheets attached hereto: #1. The well is located on the West side of the dwelling and is situated approximately five (5) feet from he residential dwelling near the air conditioning unit. I HEREBY DECLARE THAT I HAVE REVIEWED THE INSTRUCTIONS FOR THIS FORM AND THAT THE INFORMATION STATED ABOVE IS TRUE AND CORRECT. Signature: (Transor or Agent) Telephone No.: 563-590-5439 FILE WITH RECORDER DNR form 542-0960 (July 18, 2012) IOWA DEPARTMENT of NATURAL RESOURCES TIME of TRANSFER INSPECTION WAIVER For BUILDING DEMOLITION 542-0063 The Dubuque Print Form County Board of Health and the buyer of the property referenced below enter into the following agreement: It is understood that Iowa Code 455B.172(11) requires an inspection of the private sewage disposal system on all properties not specifically exempted in Iowa at the time of transfer, 6400 Pennsylvania Avenue The property located at , Iowa is subject to this inspection City of Dubuque, lowa and the buyer, , shall not occupy the dwelling located on this property and shall demolish said dwelling by the 31st day of December 20 ,20 It is hereby agreed that the time of transfer inspection and upgrading of the private sewage disposal system serving this property will not be required as long as the dwelling is not occupied and is removed 31st December 20 by the day of , 20 7th October 20 Dated the day of ,20 This instrument was acknowledged before me on TRACEY L. STECKLEFN Comminion Number 716018 My orrlf-n Exp. 4-4ir2s"--- 05/2010 cmz by • COUNTYBOARD OF HEALTH or AUTHORIZED REPRESENTATIVE CI e).R , 20 fa0 QitEN lk SRNA,Nlor-i itvr-\.0mL•i Notary Public 542-0063 OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Mark J. and Kimmie J. Heins, husband and wife (Seller) SECTION 1. REAL ESTATE DESCRIPTION. The undersigned BUYER hereby offers to buy and the undersigned SELLERS by their acceptance agree to sell the real estate (Real Estate) situated in Dubuque, Iowa, locally known as 6400 Pennsylvania Avenue, Dubuque, IA 52002 and legally described as: Lot 2 of Lot 2 of the NE %/4 of the NE 1/4 of Section 30, T89N, R2E of the 5th P.M. 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 $211,500.00, payable at the Closing. SECTION 3. REAL ESTATE TAXES. Seller shall remain responsible for any and all unpaid real estate taxes payable for fiscal year 2018-2019 and prior years. Seller shall also pay real estate taxes for fiscal year 2019-2020 prorated through 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 Toss 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 same. 1 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 August 3, 2020, 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. 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. Sellers, at their expense, shall promptly obtain an abstract of title to the Property continued through the date of acceptance of this Agreement 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. 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 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 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 2 survive the closing. SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND REVIEW. 13.1 Buyer, its counsel, accountants, agents and other representatives, shall have reasonable access with at least twenty-four (24) hours written notice, between the hours of 8:00 a.m. to 4:00 p.m. on weekdays only, to the Real Estate and all parts thereof. Access shall not interfere with Seller's use and enjoyment of the land. 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. 13.2 Sellers warrant to the best of Sellers' knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, underground storage tanks or burial sites located on the Real Estate, except as set out in Section 13.3. Sellers warrant the Real Estate does not contain levels of radon gas, asbestos or urea -formaldehyde foam insulation which require remediation under current governmental standards, and Sellers have done nothing to contaminate or allow the contamination of the Real Estate and has no knowledge of any contamination. Sellers warrant 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. 13.3 Notwithstanding the foregoing, Buyer and Sellers agree that there shall be no time of transfer inspection or Buyers shall not be responsible for the cost of the same for the private sewage disposal system and that the parties agree as follows: There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9]. 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 3 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 to accelerate 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. 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. Mark J. and Kimmie J. Heins 6400 Pennsylvania Avenue Dubuque, IA 52002 City of Dubuque Attn: Gus Psihoyos 50 W. 13th Street Dubuque, IA 52001 4 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 July 20, 2020, 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 Seller will provide Buyer with a signed Acknowledgment of Voluntary Negotiation and Purchase of Property at the time of closing, an example of which is attached. 25.2 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. 25.3 Buyer agrees that Sellers shall be granted a leasehold interest in the Property subsequent to closing. Sellers and Buyer agree that leasehold shall be in the substance and form provided for and as attached as Exhibit "A" to this Offer to Buy Real Estate and Acceptance" which shall be signed at or prior to closing. Accepted: The (2o day of ju SELLERS MARK J. HEINS By Mark J. Heins 6400 Pennsylvania Avenue Dubuque, IA 52002 , 2020. Thet0F7day of BUYER CITY OF DUBUQUE El N : 42- F 04596 By: Roy,f0. Buol, Mayor 50 W. 1 3th Street Dubuque, IA 52001 , 2020. 5 KIMMIE J. HEINS 11-ir By: Kimie J. Heins 6400 Pennsylvania Avenue Dubuque, IA 52002 6 ACKNOWLEDGMENT OpVOLUNTARY NEGOTIATION AND PURCHASE OF PROPERTY Project: Dubuque Industrial Center Economic Deve|upmentDistrict Parcel Number: 1O3O22GUg2(64OOPennsylvania Avenue) As r(s) of real estate neededfor the abovereferenced project and parcel, we acknowledge this is a voluntarily negotiated purchase by the City of Dubuque, Iowa under Section 613AA of the Code of Iowa and is not an acquisition by the City of Dubuque, Iowa through an exercise of the power of eminent domain under Chapter 613 of the Code of Iowa. This voluntarily negotiated sale to the City of Dubuque, Iowa was made without any coercive action of any nature. JsppnsY E.*lATT Commission Number 78n861 0 Public in:—�d for Dubuque County, Iowa 7 Masterpiece on the Mississippi CRENNA M. BRUMWELL, ESQ. CITY ATTORNEY MEMO To: Kevin Firnstahl City Clerk DATE: August 18, 2020 Dubuque Alberta City wmnw.rnc uaas 111111 2007.2012.2013 2017*2019 RE: City Purchase of 6400 Pennsylvania Avenue from Mark and Kimmie Heins Kevin, attached is the revised ORIGINAL Dwelling Unit Rental Agreement (Residential Lease) relating to above -referenced. We would appreciate it if you could please obtain the Mayor's signature, and provide us with a fully executed copy. You can keep the original for your file. Thank you. Attachment OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org EXHIBIT A DWELLING UNIT RENTAL AGREEMENT (Residential Lease) IT IS AGREED, by and between City of Dubuque, a municipal corporation (Landlord) and Mark J. and Kimmie J. Heins (Tenant): That Landlord hereby lets to Tenant, and Tenant hereby leases from Landlord, the following described premises situated in Dubuque County, Iowa, to -wit: 6400 Pennsylvania Avenue, Dubuque, IA 52002 legally described as Lot 2 of Lot 2 of the NE 1/4 of the NE 1/4 of Section 30, T89N, R2E of the 5th P.M. according to the recorded plat thereof hereinafter referred to as the "dwelling unit" in consideration of the mutual promises of the parties herein, and upon the following terms, provisions and conditions: 1. TERM. The duration of this Rental Agreement shall be from August 1, 2020, to and including September 21, 2020. 2. RENT. Tenant agrees to pay to Landlord, as rental for said term, as follows: $1.00 per month, in advance, the first rent payment becoming due upon August 1, 2020, and the same amount per month, in advance, on the 1st day of each month thereafter during the term of this Rental Agreement, with interest on all delinquent rental at 9% per annum. All sums shall be paid to the Landlord at 50 W. 13th Street, Dubuque, IA 52001, or at such other place as Landlord may, from time to time, direct. Tenant shall pay a late fee of $0.00 per day, not to exceed $0.00 per month. 3. DEPOSIT SECURITY. At the time of execution of this Rental Agreement, Tenant shall pay to Landlord in trust the sum of $0.00, (not to exceed two months' rent) to be held and disbursed as a rental deposit pursuant to the provisions of the Iowa Uniform Residential Landlord and Tenant Act. 4. USE -ABSENCES. Unless otherwise agreed in writing, Tenant shall occupy and use the above -described property as a dwelling unit. Tenant shall notify Landlord of any anticipated extended absence from the premises not later than the first day of the extended absence. 5. UTILITIES. Utilities shall be furnished and paid for by the party indicated on the following: 1 Utility Responsibility Electricity Tenant Gas Tenant Water Tenant Garbage/Trash Removal Tenant Other Tenant 6. UTILITY RATES. Tenant hereby acknowledges that Landlord, or the person authorized to enter into this Rental Agreement on Landlord's behalf, has heretofore fully explained to Tenant the utility rates, charges, and services for which Tenant will be required to pay, other than those to be paid by Tenant directly to the utility company furnishing service. 7. MANAGER. City of Dubuque, whose address is 50 W. 13th Street, Dubuque, IA 52001, is the person designated by Landlord to manage the premises (and to receive and receipt for all notices and demands upon the owner of the premises). 8. MAINTENANCE BY LANDLORD. Landlord shall: A. Provide and maintain appropriate receptacles and conveniences, accessible to Tenant, for the central collection and removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of the dwelling unit and arrange for their removal. B. Supply running water and reasonable amounts of hot water at all times and reasonable heat, except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of Tenant and supplied by direct utility connection. If the dwelling unit is a single family residence, it is understood and agreed that Tenant shall perform the Landlord's duties specified in Paragraphs (A) and (B) above, and shall also make whatever repairs, alterations and remodeling, and perform whatever maintenance tasks, as may be specified on an addendum, which shall be attached hereto, and signed by the parties. 9. MAINTENANCE BY TENANT. Tenant shall: A. Comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety. B. Keep that part of the premises that Tenant occupies and uses as clean and safe as the condition of the premises permit. C. Dispose from the dwelling unit all ashes, rubbish, garbage and other waste in a clean and safe manner. 2 D. Keep all plumbing fixtures in the dwelling unit or used by Tenant as clean as their condition permits. E. Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other facilities and appliances, including elevators in the premises. F. Not deliberately or negligently destroy, deface, damage, impair or remove a part of the premises, or knowingly permit a person to do so. G. Conduct himself or herself in a manner that will not disturb a neighbor's peaceful enjoyment of the premises. In addition, if the dwelling unit is other than a single-family residence, Tenant shall perform those repairs, maintenance tasks, alterations or remodeling as shall be specified in a separate writing signed by the parties and supported by adequate consideration; and Landlord shall not treat performance of such separate agreement as a condition to an obligation or a performance of this Rental Agreement. 10. RULES. All existing rules concerning the Tenant's use and occupancy of the premises have been furnished to the Tenant in writing. Additionally, Landlord may, from time to time, and in the manner provided by law, adopt further or amended written rules concerning the Tenant's use and occupancy of the premises. 11. ACCESS. Landlord shall have the right, subject to Tenant's consent, which consent shall not be unreasonably withheld, to enter the dwelling unit in order to inspect the premises, make necessary or agreed repairs, decorations, alterations or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workmen or contractors; provided, however, that Landlord may enter the dwelling without Tenant's consent, in case of emergency and as otherwise provided in the Iowa Uniform Residential Landlord and Tenant Act. 12. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Rental Agreement, nor sublet the dwelling unit, or any portion thereof, without the written consent of Landlord. 13. FIXTURES AND IMPROVEMENTS. Tenant shall leave upon, and surrender to Landlord, with the premises at the termination of this Rental Agreement, all locks, brackets for curtains, and all other fixtures attached to doors, windows or woodwork, and all alterations, additions or improvements made by Tenant, without any payment therefor. Tenant shall make no structural alterations without Landlord's written consent. Tenant's appliances, furniture, and personal property and effects shall belong to Tenant and may be removed at the expiration or earlier termination of the Lease Agreement. 14. FIRE OR CASUALTY DAMAGE. If the dwelling unit or premises are damaged or 3 destroyed by fire or other casualty to the extent that enjoyment of the dwelling unit is substantially impaired, Tenant may (i) immediately vacate the premises and notify Landlord within fourteen (14) days of Tenant's intention to terminate this Rental Agreement, in which case this Rental Agreement shall terminate as of the date of vacating, or (ii) if continued occupancy is lawful, vacate only that part of the dwelling until rendered unusable by the fire or casualty, in which case, Tenant's liability for rent shall be reduced in proportion to the diminution in the fair rental value of the dwelling unit. If this Rental Agreement is terminated under the provisions of this paragraph, Landlord shall return to Tenant all prepaid rent and security recoverable under the Iowa Uniform Residential Landlord and Tenant Act. Accounting for rent in the event of termination or apportionment shall occur as of the date of the casualty. 15. NONPAYMENT OF RENT. In addition to Landlord's other remedies provided by law, and without prejudice thereto, if rent is unpaid when due, and Tenant fails to pay the rent within three (3) days after notice by Landlord of nonpayment and the Landlord's intention to terminate this Rental Agreement if the rent is not paid within that period of time, then Landlord may terminate this Rental Agreement. 16. PRESENT AND CONTINUING HABITABILITY. Tenant has inspected the property and fixtures and acknowledges that they are in a reasonable and acceptable condition of habitability for their intended use, and that the rent agreed upon is fair and reasonable in this community for premises in their condition. If the condition changes so that, in Tenant's opinion, the habitability and rental value of the premises are affected, then Tenant shall promptly give reasonable notice to Landlord. 17. NOTICES. Any notice, for which provision is made in this Rental Agreement, shall be in writing, and may be given by either party to the other, in addition to any other manner provided by law, in any of the following ways pursuant to the Iowa Uniform Residential Landlord and Tenant Act: Landlord shall serve notice on Tenant by one or more of the following methods, except as provided in Iowa Code Section 562A.29A: A. Hand delivery to Tenant. B. Delivery evidenced by an acknowledgment of delivery that is signed and dated by a resident of the dwelling unit who is at least eighteen years of age. C. Personal service pursuant to Rule of Civil Procedure 1.305, Iowa Court Rules, for the personal service of original notice. D. Mailing by both regular mail and certified mail to the address of the dwelling unit or to an address provided by Tenant for mailing. E. Posting on the primary entrance door of the dwelling unit. 4 F. A method of providing notice that results in the notice actually being received by Tenant. Tenant shall serve notice on Landlord by one or more of the following methods: A. Hand delivery to Landlord or Landlord's agent. B. Delivery evidenced by an acknowledgment of delivery that is signed and dated by Landlord or Landlord's agent. C. Personal service pursuant to Rule of Civil Procedure 1.305, Iowa Court Rules, for the personal service of original notice. D. Delivery to an employee or agent of Landlord at Landlord's business office. E. Mailing by both regular mail and certified mail to the address of Landlord's business office or to an address designated by Landlord for mailing. F. A method providing notice that results in the notice actually being received by Landlord. For purposes hereof, the place for the payment of rental as provided in Paragraph 2 above, shall be the place designated by Landlord for the receipt of any such notice; and, unless otherwise provided herein, Landlord shall receive and receipt for all notices and demands upon the owner of the premises. Notice served by mail is deemed completed four days after the notice is deposited in the mail and postmarked for delivery, whether or not the recipient signs a receipt for the notice. (Note: a three-day Notice to Quit is governed by 562A.27). 18. CONSTRUCTION. Words and phrases herein shall be construed as in the single or plural number, and as masculine, feminine or neuter gender, according to the context. 19. ENTIRE AGREEMENT. This writing, including any addendum attached hereto, constitutes the entire agreement between the parties hereto with respect to the subject matters hereof; and no statement, representation or promise with reference to this Rental Agreement, or the premises leased, or any repairs, alterations or improvements, or any change in the term of this Rental Agreement, shall be binding upon either of the parties unless in writing and signed by both Landlord and Tenant. 20. LEAD -BASED PAINT. If the dwelling unit was constructed before 1978, Tenant acknowledges that Landlord has delivered to Tenant copies of the form Disclosure of Information on Lead -Based Paint and/or Lead/Based Paint Hazards, and the EPA pamphlet Protect Your Family from Lead in Your Home. 21. CERTIFICATION. Tenant certifies that it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the 5 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 it is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees and costs) arising from or related to any breach of the foregoing certification. 22. TERMINATION. In addition to the termination rights under this Rental Agreement, either the Landlord or Tenant may terminate this Rental Agreement with thirty (30) days' written notice as provided by the Iowa Uniform Residential Landlord and Tenant Act or as otherwise provided by law. 23. COMPLIANCE WITH LAW; PARTIAL INVALIDITY. Nothing contained in this Rental Agreement shall be construed as waiving any of Landlord's or Tenant's rights under the law. In all respects, the terms and provisions of this Rental Agreement are to be construed to comply with all requirements of the Iowa Uniform Residential Landlord and Tenant Act (IURLTA) and all applicable laws. If any term or provision of this Rental Agreement is determined to be invalid pursuant to IURLTA or other law, such invalid term or provision shall be severed from the contract, and the remainder of the contract shall continue in full force and effect as though the invalid term or provision was not contained herein. If any part of this Rental Agreement shall conflict with the law, the conflicting part shall be invalid and unenforceable to the extent that it is in conflict but shall not invalidate this Rental Agreement or affect the validity or enforceability of any other provision of this Rental Agreement. Any term of this Rental Agreement that provides for any numerical amount that would conflict with a legal limitation amount shall be construed to be equal to the legal limitation amount. 24. ADDITIONAL PROVISIONS. 24.1 Tenant will be responsible for payment of the property taxes during the term of the Lease. The City of Dubuque will pay the property taxes and invoice Tenants. Tenants shall reimburse the City of Dubuque within thirty (30) days of receipt of the invoice. 24.2 Tenant will maintain the property during the term of the lease. 24.3 Tenant will maintain adequate insurance on the property during the term of the lease. 24.4 Tenant will not be responsible to hook into city sewer system prior to vacating the property. 24.5 Neither City nor Tenant will not be responsible to supply any utilities or other municipal amenities prior to or upon termination of this lease. 6 Dated the f' day of � , 2020. MARK J. AND KIMMIE J. HEINS CITY OF DUBUQUE TENANT LANDLORD By: 4 By: Mark J. Hei s, Tena t Its: Mayo Kim ie J. Heins, Tenant 7