Loading...
Purchase of Real Estate from River City Development Group LLCCity of Dubuque City Council Meeting Action Items # 3. Copyrighted September 20, 2021 ITEM TITLE: Purchase of Real Estate from River City Development Group LLC SUMMARY: City Manager recommending City Council approval of a Resolution approving an Offer to Buy Real Estate and Acceptance for the purchase of 156.25 acres of property owned by River City Development Group for a purchase price of $4,218,750 ($27,000 per acre). RESOLUTION Approving the acquisition of real estate owned by River City Development Group LLC in Dubuque County, Iowa SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type River City Development Group Purchase Agreement- City Manager Memo MVM Memo Memo Staff Memo Memo Staff Memo Resolution Resolutions Purchase Agreement Supporting Documentation THE CITY OF Dubuque DUB TEE All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of Real Estate from River City Development Group LLC DATE: September 16, 2021 Senior Counsel Barry Lindahl and Economic Development Director Jill Connors recommend City Council approval of a Resolution approving an Offer to Buy Real Estate and Acceptance for the purchase of 156.25 acres of property owned by River City Development Group for a purchase price of $4,218,750 ($27,000 per acre). River City Development Group LLC (River City) owns 156.25 acres of property in Dubuque County on the northwest quadrant of the intersection of the Southwest Arterial and Highways 151/61. Dubuque currently has approximately 425 acres of land available for industrial development. We have previously determined that a 20-year supply of industrial park property is about 900 acres in order to be development ready for opportunities that present themselves. For this reason, it is important when strategic parcels become available that the City consider acquisition. City staff became aware of the property having been listed and determined that it would be an appropriate, viable location for a future industrial park site due to its location and size. The property is well positioned to attract companies seeking a convenient location for their operations, as it is adjacent to three 4-lane highways, giving way to a fourth, Highways 151/61 and Highway 52 (the Southwest Arterial), which gives quick access to Highway 20. The property is also located only 3 miles from the Dubuque Regional Airport. Site locators often inquire whether Dubuque has developable land near multiple vehicular routes and other modes of transportation. This strategic placement fits that bill. The property is near existing water and sanitary sewer infrastructure that was extended along the south side of Highway 61 to serve the airport. Some grading, paving, and utility infrastructure improvements would need to be made in order to fully serve the property as an industrial park, but if acquired, these improvement projects would be added to an ongoing list of needed infrastructure improvements, some of which may be eligible for federal funding under the American Rescue Plan Act or an anticipated infrastructure bill. The City has negotiated a purchase price of $27,000 per acre for 156.25 acres for a total purchase price of $4,218,750. This land purchase will be financed by extending the existing industrial park Tax Increment Financing District to encompass this property, the use of TIF district fund balance of $3,572,880 and land sales revenues that occur before June 30, 2022 (the end of Fiscal Year 2022) and the balance with Urban Renewal debt. I concur with the recommendation and respectfully request Mayor and City Council approval. v Micliael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Barry Lindahl, Senior Counsel Jill Connors, Economic Development Director 2 THE C DUjiBaFE Masterpiece on the Mississippi BARRY A. LINDAHL, ESQ. SENIOR COUNSEL MEMO To: Michael C. Van Milligen City Manager DATE: September 14, 2021 Dubuque All•Merica Cif M1.tiift'�Al.i A'A'.If-,v. AA- 2007-2012.2013 2017*2019 RE: Purchase of Real Estate from River City Development Group LLC. Attached is a Resolution approving an Offer to Buy Real Estate and Acceptance for the purchase 156.25 acres of property owned by River City Development Group. A location map is attached to the Offer to Buy Real Estate and Acceptance. The purchase price for the property is $27,000 per acre for a total of $4,218,750.00. I recommend that the Resolution be submitted to the City Council for consideration and approval. :T_1�11�u Attachments cc: Crenna Brumwell, City Attorney Jill Connors, Economic Development Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAX (563) 583-1040 / EMAIL balesq@cityofdubuque.org Attachment 1 OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAX (563) 583-1040 / EMAIL tsteckle@cityofdubuque.org THE CITY OF -Ii UB E Masterpiece on the Mississippi Dubuque Economic Development Department 1300 Main Street AI�•MBnq Dubuque, Iowa 52001-4763 Nh7x7VA[ CMV, ITX: IF 1 Office (563) 589-4393 1111 TTY (563) 690-6678 http://www.cityofdubuque.org 2007.2012.2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Purchase of Real Estate from River City Development Group LLC DATE: September 15, 2021 INTRODUCTION The purpose of this memorandum is to provide information regarding property owned by River City Development Group LLC and requests approval of a resolution authorizing the purchase of the property. BACKGROUND River City Development Group LLC (River City) owns 156.25 acres of property in Dubuque County on the northwest quadrant of the intersection of the Southwest Arterial and Highways 151/61. River City had previously listed the property for sale but had recently removed the active listing, as the property had not sold during the time of the listing. DISCUSSION Dubuque currently has approximately 425 acres of land available for industrial development. We have previously determined that a 20-year supply of industrial park property is about 900 acres in order to be development ready for opportunities that present themselves. For this reason, it is important when strategic parcels become available that the City consider acquisition. City staff became aware of the property having been listed and determined that it would be an appropriate, viable location for a future industrial park site due to its location and size. The property is well positioned to attract companies seeking a convenient location for their operations, as it is adjacent to three 4-lane highways, giving way to a fourth, Highways 151/61 and Highway 52 (the Southwest Arterial), which gives quick access to Highway 20. The property is also located only 3 miles from the Dubuque Regional Airport. Site locators often inquire whether Dubuque has developable land near multiple vehicular routes and other modes of transportation. This strategic placement fits that bill. The property is near existing water and sanitary sewer infrastructure that was extended along the south side of Highway 61 to serve the airport. Some grading, paving, and utility infrastructure improvements would need to be made in order to fully serve the property as an industrial park, but if acquired, these improvement projects would be added to an ongoing list of needed infrastructure improvements, some of which may be eligible for federal funding under the American Rescue Plan Act or an anticipated infrastructure bill. The City has negotiated a purchase price of $27,000 an acre for 156.25 acres for a total purchase price of $4,218,750. This land purchase will be financed by extending the existing industrial park Tax Increment Financing District to encompass this property, the use of TIF district fund balance of $3,572,880 and land sales revenues that occur before June 30, 2022 (the end of Fiscal Year 2022) and the balance with Urban Renewal debt. RECOMMENDATION/ ACTION STEP I respectfully request Mayor and City Council approval of the attached resolution authorizing the purchase of the aforementioned 156.25 acres from River City Development Group LLC. 2 Prepared by Barry A. Lindal, Esq. 300 Main St., Ste. 330, Dubuque IA 52001-6944 (563) 583-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 328-21 APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY RIVER CITY DEVELOPMENT GROUP LLC IN DUBUQUE COUNTY, IOWA Whereas, RIVER CITY DEVELOPMENT GROUP LLC is the ownerof the following real property (the Real Estate): Lot 2 of WERTZBERGER ACRES NO. 3, in Table Mound Township, Dubuque County, Iowa, according to the recorded Plat thereof and The Southwest '/< of the Northeast ''/<, Lot 1 of the Northwest '/ of the Northeast 1/4 , Lot 1 of Lot 1 of the Northeast'/ of the Northeast 1/4 , and Lot 2 of the Southeast '/ of the Northeast '/4, in Section 14, Township 88 North, Range 2 East of the 5th P.M., in Dubuque County, Iowa, according to United States Government Survey and the recorded Plats thereof, excepting therefrom all areas taken for highway right of way TTl Whereas, the City Manager has tentatively agreed to purchase the Real Estate from River City Development Group LLC, subject to the approval by the City Council of an Offer to Buy Real Estate and Acceptance between City and River City Development Group LLC, a copy of which is attached hereto; and Whereas, the City Council has determined that it would be in the best interests of the City to approve the Offer to Buy Real Estate and Acceptance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council hereby approves the Offer to Buy Real Estate and Acceptance attached hereto. Section 2. The City Manager and City Attorney are authorized to take such further action as is required to complete the purchase of the Real Estate. Passed, approved and adopted this 20th day of September, 2021. an y C. Sprank, Mayor Pro Tern Attest: a2,6� / /• &42g, Adrienne N. Breitfelder, City Clerk OFFER TO BUY REAL ESTATE AND ACCEPTANCE (NONRESIDENTIAL) TO: RIVER CITY DEVELOPMENT GROUP LLC, Seller: SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: Lot 2 of WERTZBERGER ACRES NO. 3, in Table Mound Township, Dubuque County, Iowa, according to the recorded Plat thereof, And The Southwest'/ of the Northeast'/, Lot 1 of the Northwest'/ of the Northeast 1/4 , Lot 1 of Lot 1 of the Northeast Y/ of the Northeast 1/4 , and Lot 2 of the Southeast'/ of the Northeast 1/, in Section 14, Township 88 North, Range 2 East of the 5th P.M., in Dubuque County, Iowa, according to United States Government Survey and the recorded Plats thereof, excepting therefrom all areas taken for highway right of way as shown on the exhibit attached hereto (the Real Estate) together with any easements and appurtenant servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants of record; c. any easements of record for public utilities, roads and highways designated the Real Estate. SECTION 2. PURCHASE PRICE. 156.25 acres more or less at $27,000 per acre, cash at closing. TOTAL: $4,218,750.00 SECTION 3. REAL ESTATE TAXES. SELLER shall pay prorated real estate taxes for the fiscal year in which the closing takes place to the date of possession and any unpaid real estate taxes payable in prior years. BUYER shall pay all subsequent real estate taxes. Unless otherwise provided in this agreement, at closing SELLER shall pay BUYER, or BUYER shall be given a credit for, taxes from the first day of July prior to possession to the date of possession based upon the last known actual net real estate taxes payable according to public records. However, if such taxes are based upon a partial assessment of the present property improvements or a changed tax classification as of the date of possession, such proration shall be based on the current levy rate, assessed value, legislative tax rollbacks and real estate tax exemptions that will actually be applicable as shown by the assessor's records on the date of possession. SECTION 4. SPECIAL ASSESSMENTS. A. SELLER shall pay in full at time of closing all special assessments which are a lien on the Real Estate as of the date of acceptance. 09102021bal B. If "A" is stricken, then SELLER shall pay at time of closing all installments of special assessments which are a lien on the Real Estate and, if not paid, would become delinquent during the calendar year this offer is accepted, and all prior installments thereof. C. All charges for solid waste removal, sewage and maintenance that are attributable to SELLER'S possession, including those for which assessments arise after closing, shall be paid by SELLER. D. Any preliminary or deficiency assessment which cannot be discharged by payment shall be paid by SELLER through an escrow account with sufficient funds to pay such liens when payable, with any unused funds returned to SELLER. E. BUYER shall pay all other special assessments or installments not payable by SELLER. 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 Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CLOSING. If BUYER timely performs all obligations, Closing shall occur on or before October 15, 2021, and any adjustments of rent, insurance, interest all charges attributable to SELLER'S possession shall be made as of the date of Closing. SECTION 7. 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: none. The following items shall not be included: any and all inventory, equipment and other personal property of any type on the premises, including, but not limited to pallet racks, fertilizer bunker walls and office equipment. SECTION 8. CONDITION OF PROPERTY. The Real Estate as of the date of this agreement, including buildings, grounds, and all improvements, will be preserved by the SELLER in its present condition until possession, ordinary wear and tear excepted. SELLER makes no warranties, express or implied, as to the condition of the Real Estate. A. BUYER acknowledges that it has made a satisfactory inspection of the Real Estate and are purchasing the Real Estate in its existing condition, subject to BUYER'S rights as set forth in paragraph 10B below. SECTION 9. ABSTRACT AND TITLE. SELLER, at its expense, shall promptly obtain an abstract of title to the Real Estate continued through a date within thirty (30) days of the Closing and deliver it to BUYER'S attorney 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. SELLER shall make every reasonable effort to promptly perfect title. If closing is 09102021bal 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 BUYERS 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 its assignees. SECTION 10. SURVEY. BUYER may, at BUYER'S expense prior to closing, have the Real Estate surveyed and certified by a registered land surveyor. If the survey shows any encroachment on the Real Estate or if any improvements located on the Real Estate encroach on lands of others, the encroachments shall be treated as a title defect. SECTION 11. ENVIRONMENTAL MATTERS. A. SELLER represents and warrants that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, underground storage tanks, burial sites, or private wastewater disposal systems located on the Real Estate, the Real Estate does not contain radon gas, asbestos or asbestos containing building materials, or urea -formaldehyde foam insulation, and SELLER has done nothing to cause or allow contamination of the Real Estate with hazardous wastes, substances, or pollutants. SELLER represents and warrants that the Real Estate is not subject to any local, state, or federal judicial or administrative action, investigation or order regarding any environmental matter. SELLER shall provide BUYER with a properly executed Groundwater Hazard Statement showing no wells, solid waste disposal sites, hazardous wastes, underground storage tanks, private burial sites or private wastewater disposal systems on the Real Estate which shall be considered a representation and warranty made by SELLER to BUYER. B. SELLER shall, at its sole cost and expense, protect, defend, indemnify, defend, release, and hold BUYER harmless from and against any and all losses imposed upon or incurred by or asserted against or suffered by BUYER and directly or indirectly arising out of or in any way relating to any one or more of the following (except to the extent the same relates solely to a hazardous substance first introduced to the Real Estate by BUYER): (a) the past, present, or future presence, release, or threatened release of any hazardous substance in, on, above, or under the Real Estate; (b) any past, present, or threatened noncompliance or violations of any federal, state, or local laws now existing or hereafter enacted in connection with the Real Estate or operations thereon; (c) any legal or administrative processes or proceedings orjudicial proceedings in any way connected with any matter addressed in Section 15.4(1); (d) any personal injury, wrongful death, or property or other damage arising under any statutory or common law or tort law theory concerning any hazardous substances that may exist on the Real Estate; and (e) any misrepresentation and inaccuracy in any representation or warranty or material breach or failure to perform any of the covenants or other obligations pursuant to this Agreement. SELLER acknowledges that losses it is required to indemnify BUYER against include, but not by way of limitation, any costs reasonably necessary to remediate the Real Estate to a state in which it does not pose a threat to the public safety, without regard to whether such remediation is voluntary or is required by a government authority. C. Within five (5) days after acceptance of this Agreement, SELLER will make available for BUYER'S review , at no cost to BUYER, all documents in the Possession of SELLER which are not publicly available, including but not limited to as -built drawings, site plans, maps, historical records showing past use of the Real Estate and storage of petroleum products 09082021bal or other products, reports, studies, investigations, audits, actions, or tests, relating in any way with the environmental condition of the Real Estate, to the compliance of the Real Estate with the federal and state environmental laws or the presence of hazardous substances on, at, or about the Real Estate, including but not limited to those that were: (a) prepared for SELLER or any related party or affiliate or predecessor in interest; or (b) prepared for other persons or entities, and are in the possession, custody or control of SELLER or any related party or affiliate or predecessor in interest (collectively, the "Environmental Documents"). BUYER shall be entitled to make copies of all such documents, at BUYER'S cost. SELLER authorizes BUYER to speak to any person involved in the preparation of the Environmental Documents. At no cost to BUYER, SELLER shall cooperate with BUYER in obtaining reliance agreements, if permitted under the law, for any previous environmental site assessments or other reports. D. BUYER may, at BUYER'S expense, within thirty (30) calendar days of Closing but no later than one (1) day before closing, obtain an environmental site assessment from a qualified environmental professional regarding the existence or nature of any hazardous materials, substances, conditions, or wastes located on the Real Estate. If any recognized environmental concerns are identified by the environmental professional, BUYER'S obligations hereunder shall be contingent upon SELLER removing such materials, substances, conditions, wastes, or other concerns identified in the report from the Real Estate in a matter reasonably satisfactory to BUYER. E. The parties acknowledge that BUYER is acquiring the Real Estate as an innocent landowner or bona fide prospective purchaser as the applicable term is used in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601, et. seq., and SELLER shall freely cooperate with BUYER in obtaining and sustaining that status. F. These environmental provisions shall survive closing. SECTION 12. DEED. Upon payment of the purchase price, SELLER shall convey the Real Estate to BUYER or BUYER'S assignee by Warranty Deed free and clear of all liens, restrictions and encumbrances, except: zoning ordinances and agreements entered under them, and easements and restrictions of record, which constitutes merchantable title for purposes of this transaction. 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 13. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If SELLER, immediately preceding acceptance of the offer, holds title to the Real Estate in joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the SELLERS, then the proceeds of this sale, and any continuing or recaptured rights of SELLERS in the Real Estate, shall belong to SELLERS as joint tenants with full rights of survivorship and not as tenants in common; and BUYERS, in the event of the death of any SELLER, agree to pay any balance of the price due SELLERS under this agreement to the surviving SELLERS and to accept a deed from the surviving SELLERS consistent with paragraph 11. SECTION 14. JOINDER BY SELLER'S SPOUSE. SELLER'S spouse, if not a title holder immediately preceding acceptance, executes this agreement only for the purpose of relinquishing all rights of dower, homestead, and distributive share or in compliance with Section 09082021bal 561.13 of the Code of Iowa and agrees to execute the deed or real estate contract for this purpose. SECTION 15. STATEMENT AS TO LIENS. If BUYERS intend to assume or take subject to a lien on the Real Estate, SELLERS shall furnish BUYERS with a written statement prior to closing from the holder of such lien, showing the correct balance due. SECTION 16. 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 17. APPROVAL OF COURT. If the sale of the real estate is subject to court approval, the fiduciary shall promptly submit this contract for such approval. If this contract is not so approved, it shall be void. SECTION 18. REMEDIES OF THE PARTIES. A. If BUYER fails to timely perform this agreement, SELLER may forfeit it as provided in the Iowa Code (Chapter 656), and all payments made shall be forfeited; or, a SELLER'S option, upon thirty (30) days written notice of intention to accelerate the payment of the entire balance because of BUYER'S default (during which thirty (30) days the default is not corrected), SELLER may declare the entire balance immediately due and payable. Thereafter this agreement may be foreclosed in equity and the court may appoint a receiver. B. If SELLER fails to timely perform this agreement, BUYER has the right to have all payments made returned to them. C. BUYER and SELLER are also entitled to utilize any and all other remedies or actions at law or in equity available to them, and the prevailing party shall be entitled to obtain judgment for costs and attorney fees. SECTION 19. 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. SECTION 20. GENERAL PROVISIONS. In the performance of each part of this agreement, time shall be of the essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This agreement shall apply to and bind the successors in interest of the parties. This agreement shall survive the closing. 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. 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 21. ADDITIONAL PROVISIONS. A. This offer is subject to final approval of the City Council of the City of Dubuque, Iowa, in its sole discretion. 09082021 bal B. 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 for the purpose of 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 inquires of governmental agencies and utility companies, etc. and to make such feasibility studies and analysis as BUYER considers appropriate. C. SELLER shall be responsible for payment of any commission or brokerage fee arising out of this transaction, which fee shall be payable through the closing proceeds. D. SELLER warrants that the rights of all tenants shall be terminated by SELLER prior to closing and that there will be no tenants whose rights in the real estate survive the closing, except the rights of SELLER as set forth on Exhibit A hereto. E. Notwithstanding anything to the contrary herein, until ten (10) days prior to the closing date, BUYER shall have the right to terminate this agreement if environmental issues exist on the real estate BUYER determines in its sole discretion do not permit BUYER to use the real estate for its intended use. Prior to terminating this agreement pursuant to this section, BUYER shall offer SELLER the opportunity to remediate the real estate to the satisfaction of BUYER in its sole discretion and at SELLER'S sole costs. SECTION 22. ACCEPTANCE. When accepted, this agreement shall become a binding contract. If not accepted and delivered to BUYER on or before the 17th day of September, 2021, this agreement shall be null and void and all payments made shall be returned immediately to BUYER. If accepted by SELLER at a later date and acceptance is satisfied in writing, then this agreement s all b alid a d binding. Accepted Dated ►3 c� BUYER /`"� �'"" SELLER CITY OF UBU UE, 10 RIVER TY DEV LOPME T GROUP LLC By:�� By: INIe� r Michael C. Van Milligen, City Manager LLQ 09082021bal EXHIBIT 09082021bal 09082021bal m 4�&' 1i.....—.�....•. ADDENDUM TO PURCHASE CONTRACT (ATTACHED TO PURCHASE CONTRACT) LLC Buyer: ECtAa 6 Address of Property Being Purchased: 0 Katie Cove, Dubuque, IA 52003 Address City State ZIP Date of Offer for Real Estate: 9 ( t1 '2 L Z.i the undersigned Buyer and Seller hereby agree to the following:Listing agent is related to sellers. The herein agreement, upon its execution by both parties, is herewith made an integral part of the aforementiongd PylrchasA Contract. All other contract terms are to remain the same. Age❑ doll000 wnfied c—spa;rc.-v .c.>a..6!,V— t.., f."4r CDT 09/T 1810 Phi NVAEDI-7W-AT07 dotloopvenfixd 091101 ' g' AM CDT L690-PSWUILH-AGA7 dotloo�ven0ed 09109!_I 7t Phi COT NIXO-ZVM-DY21-HOXI ECIAR 6 07/10 Copyright 0 2010 East Central Iowa Multiple Listing Services, Inc. For Member use Only 1� Notice to Buyer- Emerald Ash Borer Property Address0 Katie Cove, Dubuque, IA 52003 Potentially significant costs and aesthetics of a property are at risk due to the Emerald Ash Borer (EAB) — a threat to the ash tree population in Iowa and surrounding states. Trees add significant value to a property, and transaction values will be greatly impacted by the loss of any tree. The cost for preventative treatments (approximately $100 - $5000) may need to be considered, as well as the potential costs for removal (approximately $200- $4000 depending on size and location) of a tree which is infected with EAB, or is already dying. These factors may need to be evaluated by any potential purchaser of property with ash trees. Emerald Ash Borer (Agrilus planipennis) is a small green invasive wood boring beetle that attacks and kills ash trees. The adults live on the outside of ash trees feeding on the leaves during summer months. The larvae look similar to white grubs and feed on the living plant tissue (phloem and cambium) underneath the bark of the ash trees. The trees are killed by the tunneling activity of the larvae under the tree's bark, which disrupts the vascular flow. The Iowa Department of Natural Resources (DNR) announced quarantine for the entire state of Iowa. Preventative treatment of ash trees with 15 miles of a known case of EAB is recommended. Even though Iowa has been quarantined statewide, Iowans are encouraged not to transport firewood across county or state lines, since moving firewood poses the greatest threat to quickly spreading EAB or possibly other pests even further. The metallic green beetle is native to East Asia and was imported to the United States within the wood of shipping crates from China. EAB was first discovered in North America near Detroit, Michigan in 2002. Since the first discovery it has also been found in 18 states and Canada. EAB attacks native ash trees of any size, age or stage of health. Millions of ash trees have already been killed in infested areas. Much of Iowa and surrounding states forestland is densely populated with ash trees, and Iowa's community street trees are heavily planted with ash cultivars. Early inventory data indicates that there are 52 million woodland ash trees and 3.1 million urban ash trees. Many ash trees are in your yard, neighborhood, community and woodlands. Imagine those areas without ash trees. Trees that have been attacked EAB can die within two years. Some benefits of urban trees include helping clean the air, slow storm water runoff, raise property values, sequester carbon and reduce energy costs. As REALTORS we are not trained in identifying trees. Sellers/Buyers are encouraged to identify the species of trees on their and nearby property and take particular note of any ash trees. CONTACT AN EXPERT (local arborist, tree salesperson or service) to correctly determine the type of trees on your property. Much more information can be found at http://www.iowadnr.gov/environment/forestry/forestheaIth/emeraIdashborer aspx There are confirmed Ash trees on the property: I acknowledge receipt of this disclosure David j Webber, Member of River City Development Group LLC Print name of Seller/Owner —.!mop f •• •y�•�9 �-••ry�r-Lr 09/09/21 b:41 PSf CDT Signature of Seller/Owner Date Dean j Hoffman, Member of River City Development Group LLC Print Name of Seller/Owner f r'Si�^"•=•>'e^•�?�•4--+Yy'-=s' 09/f0/11$32A ND84-fiVl-BNXU-X02U-X027 Signature of Seller/Owner Date @Copyright 2015 East Central Iowa Multiple Listing Service MesCalloQUnknown For Member Use Only