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Purchase of Property_500 Rhomberg for Bee Branch Creek Restoration ProjectMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Commercial Property Purchase for the Bee Branch Restoration Project, 500 Rhomberg Avenue DATE: December 27, 2010 City Engineer Gus Psihoyos recommends City Council approval to purchase a commercial property for $105,000 ($5,000 more than the appraised value) located at 500 Rhomberg Avenue owned by PJ's Tap, LLC. This purchase is part of the acquisition program associated with the Bee Branch Creek Restoration Project. 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 Gus Psihoyos, City Engineer Michael C. Van Milligen Dubuque kitild All- AmdicaCity 11111! 2007 Masterpiece on the Mississippi Dubuque ul4merIcaatr 2007 TO: Michael Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Commercial Property Purchase for the Bee Branch Restoration Project, 500 Rhomberg Avenue DATE: December 21, 2010 INTRODUCTION The purpose of this memorandum is to request City Council approval to purchase a commercial property at 500 Rhomberg Avenue owned by PJ's Tap, LLC required for the Bee Branch Creek Restoration Project. BACKGROUND In December of 2001, the City Council formally adopted the Drainage Basin Master Plan (DBMP) prepared by HDR Engineering (Omaha, Nebraska). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. 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. In 2005, the City Council authorized the City Manager to enter into a contract with Graham Land Acquisition Associates (now JCG Land Services, Inc.) to assist with the acquisition of the commercial properties south of 16 Street required for the Bee Branch project. On May 3, 2010, the City Council passed Resolution 139 -10 establishing the fair market value of 500 Rhomberg Avenue at the appraised value of $100,000 and authorizing the City Manager to commence negotiations to acquire the property. DISCUSSION The owners of the property, PJ's Tap, LLC, have accepted an offer for purchase of the property for $105,000.00, $5,000 more than the appraised value. RECOMMENDATION I recommend that the City purchase 500 Rhomberg for $105,000.00. BUDGET IMPACT The purchase will be funded from the FY2009 appropriation of $3,902,395 for property acquisitions for the Bee Branch Creek Restoration Project (CIP 7201654). ACTION TO BE TAKEN I respectfully request adoption of the attached resolution authorizing the purchase of the property at 500 Rhomberg owned by PJ's Tap, LLC legally described as W 21.2' Lot 20 Smedleys Sub, all in the City of Dubuque, Dubuque County, Iowa. Prepared by Deron Muehring, Civil Engineer II cc: Jenny Larson, Budget Director Address: Bee Branch Creek Restoration Project Property Acquisition 500 Rhomberg Avenue Exhibit A Legal Description: W 21.2' Lot 20 Smedleys Sub 500 -500 1/2 Rhomberg Avenue RESOLUTION NO. 1-11 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY PJ'S TAP, LLC IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation ac tivities as recommended in the 2001 "Drainage Basin Master Plan;" and Whereas, a purchase agreement has been finalized with the owner of the property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the acquisition of the following legally described property: W 21.2' Lot 20 Smedleys Sub in the City of Dubuque, Dubuque County, Iowa At the cost of One Hundred Five Thousand and 00/100 Dollars ($105,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Quit Claim 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 Quit Claim Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. Passed, approved and adopted this 3rd day of Att st: Jeanne F. Schneider, CMC, City Clerk uary , 2011. Roy D. Buol, Mayor