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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.