Old Mill Rd Prop - ECIAMEMORANDUM
January 14, 2004
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Old Mill Road Property Disposition
East Central Intergovernmental Association Community Development Director Mark
Schneider has requested this matter be set for public hearing on February 16, 2004.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
Midhael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Mark Schneider, Community Development Director, East Central
Intergovernmental Association
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
January 12, 2004
MEMO TO:
FROM:
RE:
Jeanne Schneider
Mark Schneider,/g~,~
Old Mill Rd. property disposition
Suite 200
3999 Pennsylvania Avenue
Dubuque, IA 52002
The City of Dubuque has acquired three properties on Old Mill Rd. and will close on a fourth
property on January 26, 2004. These properties are located in the 100-year floodplain and have
been flooded three times since 1993. They are be'mg acquired with funding provided from a
grant through the Hazard Mitigation Grant Program (HMGP). The demolition of the structures
is being paid with grant funds through the FEMA Public Assistance program. The properties
must remain open green space forever as a condition of the HMGP program.
The City provided matching funds on the first three properties and Mr. David Harfig is providing
the matching funds for the fourth property. Mr. Hartig agreed to provide the funds with the
understanding that the City would lease all four properties to him for the sm of $1. Mr. Hartig
understands that it must remain open green space and agrees to assume responsibility for seeding
or sodding of all properties, the placement of trees as he deems appropriate and the general
maintenance of the property for the term of the lease. The lease will become effective as soon as
the structures have been demolished and cleared from the properties, including the removal of all
utilities including the abandoned wells. A copy of Mr. Hartig's commitment letter is enclosed.
Mr. Bill Blum and City staffare preparing the lease agreement. The City Council agreed to
these terms in their approval of the 1650 Old Mill Rd. property acquisition on September 15,
2003.
I recommend that a Public Heating be set for the disposal of this property through the proposed
long term lease agreement with Mr. Hartig. Please feel free to contact me if there is any
question.
CC:
Encl.
Mr. Bill Blum
Mr. David Hartig
PHONE (563) 556-4'i66 IOWA ONLY (800) 942-4648 FAX (563) 556-0348 E-,¥13JL eda@ecia.or9 ;;VEB SITE www.eda.org
Dubuque Metropolitan Area Transporta~on StuchJ · Eastern Iowa Regional Housing Authority ~ Region 1 Employment and Training
~ ECU1 Regional Planning Affiliation - ECIA Business Growth, Inc. *
July 9, 2003
OAVID S. HARTIG, JR.
P.O. Box 604
Dubuque, IA 52004-0604
(563) 583-0408
City ofDubuque
Atm.:Mike VanMitl~e~ CityManager
50West 13m St.
Dubuque, IA52001
RE: Old Mill Road properties
Dear Mike:
This letter is to confirm my intention to pay the City's required match in the Hazard Mitigation
Grant Program (HMGP) to acquire the Pancratz Construction property located at 1650 Old Mill
Road. I spoke with Mark Schneider of ECIA who provided me with the project budget status and
estimated additional costs. My understanding is that the estimated match is $16,850.46 based on
the following information.
The purchase price to Mr. Pancratz wilt be $46,934.13. In addition to the purchase price, recording
fees and closing costs are estimated at $181.00 and additional legal work related to a long term
lease is estimated at $500.00. Further the demolition work is estimated at $10,000.00.
I further understand that the City has $32,264.67 available in state and federal funds in the HMGP
program and that FEMA Public Assistance program will reimburse the City for 85% of the
demolition costs.
Therefore, the estimated costs for the acquisition will be $47,615.13 including the purchase price
and closing and all legal fees and the available HMGF funds of $32,264.67 will be used toward the
purchase. In additi6n, the demolition is estimated at $10,000:00 and that FEMA Public Assistance
wil/provide $8,500.00 (85%) toward this expense. The estimated sum total required match for the
acquisition and demolition is $16,850.46.
I am committing to provide the City's estimated $16,850.46 match toward this project. I further
understand that this is an estimate and the actual match may be something slightly more or less
than this estimate and commit to provide the final requked match funds above or below this
amount based on the actual costs upon project completion. I understand that the acquisition and
demolition of this property must not result in the City of Dubuque incurring any expense
whatsoever. _
In return for this commitment I desire to obtain a long term (99 years) lease fi-om the City for this
property (1650 Old Mill Road) ~d the 1620, 1695 and 1699 Old Mill Road properties that the City
July 9, 2003
Mr. iVfike Van Milligen
Page 2
has already purchased through the PIMC-P program. I do understand that the City will record deed
restrictions on the property that it must be maintained as open green space forever.
The proposed budget includes $500.00 for the lease preparation. The lease would become
effective as soon as the structures have been demolished and cleared fi-om the properties, including
the removal of all utilities including the abandoned wells. The ground is to be bare ground at the
time of lease signing. I agree to assume responsibility for seeding or sodding of all properties, the
placement of trees as I deem appropriate and the general maintenance of the property for the term
of the lease.
David Hartig
Thank you for your consideration (~f my offer and the opportunity to ass[st the City with this
project and future maintenance of these properties. Please feel flee to contact me if there is any
question regarding my offer.
Mark Schneider, ECL&
t'im. Pancratz
RESOLUTION NO.
RESOLUTION: ESTABLISH A PUBLIC lie RING FOR TItF~ DISPOSITION OF OLD
Mil& RD. PROPERTY
WIt-EREAS, the City of Dubuque is acquiring four properties located in the floodplain on
Old Mill Rd. through its Hazard Mitigation Grant Program; and
WHEREAS, the property must remain open green space forever; and
WHEREAS, the property must remain in public ownership; and
Wl:rF, REAS, Mr. David Hartig has agreed to a long term lease whereby he will maintain
these properties and their open green space condition; and
WltEREAS, the Dubuque City Council agreed to these conditions as part of the final
property acquisition; and
WHEREAS, the Code of Iowa requires that a public heating be held prior to the disposal
of property.
NOW THEREFORE BE IT RESOLVED BY TI-I~. CITY COUNCIL OF TI~F. CITY OF
DUBUQUE, IOWA that a public hearing on the disposition of properties located at 1620, 1650,
1695 and 1699 Old Mill Rd. will be held on Monday, February 2, 2004 at 6:30 PM before the
Dubuque City Council in the Carnegie-Stunt Public Library Third Floor Conference Room, 360
West 11th St., Dubuque, Iowa; and
BE IT FURTHER RESOLVED that notice of this hearing shall be published in accordance
with the law.
ATTEST:
TerrenceM. Duggan, Mayor
Jeanne Schneider, City Clerk
ADOPTED: January 19, 2004
NOTICE OF PUBLIC HEARING
Notice is hereby given that the City of Dubuque will hold a public hearing at 6:30 PM on Monday,
February 2, 2004 at the Carnegie-Stout Public Library third flood conference mom, 360 West 11~
St., Dubuque, IA for the purpose of soliciting written and oral comments on the City's proposed
disposition of property located at 1620, 1650, 1695 and 1699 Old Mill Road.
Interested persons should attend or respond in writing with comments to be addressed to: City of
Dubuque, Attn: Jeanne Schneider, City Clerk, 50 West 13th St., Dubuque, IA 52001.