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Highway 151 & 61 Development_Setting Fair Market Value of 0.281 AcresMasterpiece on the Mississippi MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer Mic ael C. Van Milligen Dubuque blitd Ad- America City 11111! 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration Project, Purchase of Commercial Property DATE: June 29, 2010 On June 5, 2006, the City Council approved a Development Agreement with HWY 151 & 61 Development, LLC (HWY 151) that provided public financial assistance and other considerations for the redevelopment of the former Smithfield property on 16 Street. The terms of the Development Agreement include the City's acquisition of 3.3 acres more or less (the City does need more than 3.3 acres) of HWY 151 property along the west side of the former pack site for the Bee Branch Creek Restoration Project. It also included acquisition of five small lots south of 16 Street between Cedar and Maple Streets. City Engineer Gus Psihoyos recommends the City Council establish the fair market value of the 0.281 acres (five small Tots) of HWY 151 & 61 Development, LLC property south of 16 Street at the appraised value of $137,500 and authorize the City Manager to begin negotiations to acquire this property for the Bee Branch Creek Restoration Project. I concur with the recommendation and respectfully request Mayor and City Council approval. Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Bee Branch Creek Restoration Project, Purchase of Commercial Property DATE: June 30, 2010 INTRODUCTION BACKGROUND DISCUSSION Dubuque kittill an- americaCNY 1 111 2007 The purpose of this memo is to establish the fair market value of property owned by HWY151 & 61 Development, LLC (HWY151) south of 16 Street and seek authorization for the City Manager to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. In December of 2004, the City Council established the alignment for the Bee Branch Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington Streets, and established a building permit moratorium for the properties impacted based on the alignment. The alignment established the properties necessary to be acquired for the Bee Branch Creek Restoration Project. On June 5, 2006 the City Council approved a development agreement (Development Agreement) with HWY151 that provided public financial assistance and other considerations for the redevelopment of the former Smithfield property on 16th Street. The terms of the Development Agreement between HWY151 and the City include the City's acquisition of 3.3 acres more or less of HWY151 property along the west side of the former pack site for the Bee Branch Creek Restoration Project. The City is in need of some additional property north of 16 Street. It also included the acquisition of five small lots south of 16 Street between Cedar and Maple Streets. The property south of 16 Street has been appraised so that the fair market value of the property can be established. The five small lots south of 16 Street were appraised at $137,500 which is roughly $11.23 per square foot. The five lots are legally described as: 1) N 1/2 LOT 316 EAST DUBUQUE ADD; 2) S 1/2 LOT 316 EAST DUBUQUE ADD; 3) W 1/2 LOT 355 EAST DUBUQUE ADD; 4) E 1/2 LOT 355 EAST DUBUQUE ADD; and 5) LOT 2 OF 354 EAST DUBUQUE ADD RECOMMENDATION I recommend that the City establish the fair market value of the 0.281 acres of HWY151 & 61 Development, LLC property south of 16 Street at the appraised value and that the City Manager begin negotiations with the property owner. ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolution establishing the fair market value of the 0.281 acres of HWY151 & 61 Development, LLC property south of 16 Street and authorizing the City Manager to commence negotiations to acquire the property. Prepared by Deron Muehring, Civil Engineer II cc: Barry Lindahl, City Attorney Deron Muehring, Civil Engineer II RESOLUTION NO. 223-10 ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY OWNED BY HWY 151 & 61 DEVELOPMENT, LLC IN THE CITY OF DUBUQUE, IOWA. WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by Hwy 151 & 61 Development, LLC (Owner), legally described as follows (the Property): all in the City of Dubuque, Dubuque County, Iowa as shown on Exhibit A attached hereto for the purpose of the stormwater conveyance associated with the restoration of the Bee Branch Creek; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with the Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City has caused an appraisal of the property to be made and the appraised value of the property is $137,500.00; AND WHEREAS, the City Council now desires to establish the fair market value of the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Attest: N 1/2 LOT 316 EAST DUBUQUE ADD S 1/2 LOT 316 EAST DUBUQUE ADD W 1/2 LOT 355 EAST DUBUQUE ADD E 1/2 LOT 355 EAST DUBUQUE ADD LOT 2 OF 354 EAST DUBUQUE ADD 1. The fair market value of the Property is hereby established to be $137,500.00. 2. The City Manager is hereby authorized to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this resolution. Passed, approved and adopted this 6th day of July, 2010. anne F. Schneider, CMC City Clerk Ctif 1'2 Roy D. Buol, Mayor Legend 0.281 Acre Parcel (HWY 151 & 61) EXHIBIT A HWY151 &61 PROPERTY SOUTH OF 16TH STREET