Old Mill Rd Lease Agreement_David HartigMEMORANDUM
Januaw 29,2004
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Lease of Old Mill Road Properties to David S. Hartig, Jr.
Assistant City Engineer Gus Psihoyos is recommending City Council approval of a
99-year lease agreement with David S. Hartig, Jr. for throe rosidential properties at
1620, 1695 and 1699 Old Mill Road, and upon City acquisition, the commemial property
at 1650 Old Mill Road. The lease roquires that the property be maintained as green
space and a naturo proserve.
Mr. Hartig will contribute the amount of the City's match, $16,850, for the acquisition of
the flood-damaged property at 1650 Old Mill Road.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi~ha~elC.~a/n Milligen ' -~
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, Assistant City Engineer
Mike Koch, Public Works Director
MEMORANDUM
January28, 2004
TO:
FROM:
Michael C. Van Milligen, City Manager
Gus Psihoyos, Assistant City Engineer
SUBJECT: Lease of Old Mill Road Properties to David S. Hartig, Jr.
BACKGROUND
On September 16, 2002, by resolution, the City Council authorized the City
Manager to submit an application for financial assistance under the Hazard
Mitigation Grant Program (HMGP) to purchase six (6) properties, five residential
and one commercial, on Old Mill Road. Flooding substantially damaged the
commercial property and three of the residential properties.
Due to the state's priority to acquire substantially damaged residential properties,
one of the properties, 1650 Old Mill Road, a commercial property, was considered
a Iow priority.
In December of 2003, the City Council endorsed letters to Senator Tom Harkin,
Representative Jim Nussle, and Senator Chuck Grassley requesting $46,000 in
FEMA funds specifically for the acquisition of 1650 Old Mill Road.
On March 10, 2003, the Iowa Emergency Management Division (IEMD) notified the
City that the Federal Emergency Management Agency (FEMA) approved $201,596
in federal funding for the City's project application.
The budget was established based on the cost to purchase and demolish the three
substantially damaged residential properties: 1695 Old Mill Road, 1699 Old Mill
Road, and 1620 Old Mill Road. However, due to the state's priority to acquire
substantially damaged residential properties and the lack of funds for all project
requests, funding for the substantially damaged commercial property, 1650 Old
Mill Road, was not specifically provided.
In March of 2003, the City Council approved a Contract for Services with East
Central Intergovernmental Association (ECIA) for the administrative services
associated with the Grant Agreement between the City of Dubuque and IEMD.
Because the projected balance of state and federal funds after the acquisition of the
three residential properties was $32,264.67, Mark Schneider proposed that ECIA draft
an amendment request, on behalf of the City and the property owner of 1650 Old Mill
Road, to increase the project scope to include the acquisition of 1650 Old Mill Road. In
September, the City Council authorized ECIA to make the amendment request.
In addition, the City Council authorized the City Manager to negotiate a lease
agreement with David S. Hartig, Jr. to lease 1695 Old Mill Road, 1699 Old Mill Road,
1620 Old Mill Road, and 1650 Old Mill Road should IEMD approve funding for
acquisition of the properties.
DISCUSSION
On October 8, 2003, staff received notice from IEMD that the City's amendment
request was eligible for funding under the Hazard Mitigation Grant Program. IEMD
concurred with the City's request and submitted it to FEMA for final approval.
Following FEMA's approval, the acquisition process has proceeded for the commercial
property at 1650 Old Mill Road. The closing is scheduled for February 17th.
At the time of closing, Mr. Hartig will contribute to the City approximately $16,850 to be
used for the purchase of 1650 Old Mill Road. In consideration for that contribution, Mr.
Hartig desires a long term (99 year) lease for all of the Old Mill Road properties.
The lease requires that the property be maintained as green space and a nature
preserve.
RECOMMENDATION
I recommend that the City Council approve the lease of the three residential properties,
1620,1695, and 1699 Old Mill Road, and, upon acquisition, the commercial property at
1650 Old Mill Road to Mr. Hartig for a period of 99 years.
ACTION REQUESTED
I respectfully request that the City Council adopt the attached resolution setting the
lease agreement for public headng.
attachments
CC: Michael Koch, Public Works Director
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
Deron Muehdng, Civil Engineer II
Mark Schnieder, ECIA
David Hartig
Prepared by: Barry A. Lindah1300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 51 -04
INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY
BY LEASE WITH DAVID S. HARTIG, JR.
WHEREAS, the City of Dubuque, Iowa (City) is the owner of the following properties:
Lot 1-1-2-1 Mineral Lot 507
Lot 1-1-2-1-2-1-4 Mineral Lot 501
Lot 2-1-2-1-1-2-1-4 Mineral Lot 501
Lot 2 Papke Place
Lot 1-1-2-1-1-2-1-4 Mineral Lot 501
Lot 2-1-1-1-1-2-1-4 Mineral Lot 501
Lot 2-1-2-1-2-1-4 Mineral Lot 501;
and City intends to purchase Lot 1 Old Mill Place, all of which properties are referred to herein as
the City Property; and
WHEREAS, David S. Hartig, Jr. (Hartig) proposes to lease the City Property on the terms
set forth in the attached Lease Agreement; and
WHEREAS, the City Council of the City of Dubuque, Iowa, has determined that it is in the
best interests of the City to lease the City Property to Hartig.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque, Iowa, intends to dispose of its interest in the foregoing-
described City Property by Lease Agreement between City and David S. Hartig, Jr., a copy of
which is attached hereto.
Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and a
notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the City's
intent to dispose of the foregoing-described City Property, to be held on the 16th day of February,
2004, at 7:00 o'clock p.m. at lhe public library auditorium, 11th & Locust, Dubuque, Iowa.
Attest: Jeanne Schneider, City Clerk
Passed, approved and adopted this 2nd day of February, 2004.
Terrance M. Duggan, Mayor
Preparer
Information Barry A. Lindah1300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
Individual's Name Street Address City Phone
Barry A, Lindahl ISBA # 6899 SPACE ABOVE THIS LINE FOR RECORDER
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DAVID S. HARTIG, JR.
THIS AGREEMENT, made and entered into this __ day of ,2004,
by and between the City of Dubuque (City), whose address, for the purpose of this
Lease, is 50 W. 13th Street, Dubuque, IA, 52001 and David S. Hartig, Jr. (Hartig), whose
address for the purpose of this Lease is 1495 Southern Avenue, Dubuque, IA, 52003.
The parties agree as follows:
1. PREMISES AND TERM.
situated in Dubuque County, Iowa:
City leases to Hartig the following real estate,
Lot 1-1-2-1 Mineral Lot 507
Lot 1-1-2-1-2-1-4 Mineral Lot 501
Lot 2-1-2-1-1-2-1-4 Mineral Lot 501
Lot 1 Old Mill Place
Lot 2 Papke Place
Lot 1-1-2-1-1-2-1-4 Mineral Lot 501
Lot 2-1-1-1-1-2-1-4 Mineral Lot 501
Lot 2-1-2-1-2-1-4 Mineral Lot 501
together with all improvements thereon, and all rights, easements and appurtenances
th
thereto belonging, for a term beginning on the 7 day of August, 2004, and ending on
the 6th day of August, 2103, upon the condition that Hartig performs as provided in this
Lease.
2. RENT. Hartig agrees to pay City as rent $1.00 for the term of the Lease. The
parties acknowledge that Hartig has previously paid to City the sum of $16,800.00 for
City's use in the purchase of the premises. For purposes of this Lease Agreement, such
amount shall also be considered rent.
3. POSSESSION. Hartig shall be entitled to possession on the first day of the
Lease term, or such earlier date as the parties may agree, and shall yield possession to
City at the termination of this Lease. SHOULD CITY BE UNABLE TO GIVE
POSSESSION ON SAID DATE, HARTIG'S ONLY DAMAGES SHALL BE A PRO RATA
ABATEMENT OF RENT.
4. USE. Hartig shall use and maintain the premises only for green space and a
nature preserve. No parking of vehicles or storage of vehicles or other materials of any
kind shall per permitted on the premises.
5. CARE AND MAINTENANCE.
(a) Hartig takes the premises as is.
(b) Hartig shall maintain the premises in a reasonable safe, clean and
presentable condition, including the mowing of grass. Hartig shall not erect any
structure of any kind on the premises without the prior written consent of City. City
agrees to remove all snow and ice from the sidewalk on or abutting the premises.
(c) Hartig shall upon possession of the premises seed or sod the premises at his
expense. Hartig may also at his expense plant such trees of such kind and at such
locations as he deems appropriate on the premises.
6. UTILITIES AND SERVICES.
which may be used on the premises.
Hartig shall pay for all utilities and services
7. SURRENDER. Upon the termination of this Lease, Hartig will surrender the
premises to City in good and clean condition. Continued possession, beyond the term of
this Lease and the acceptance of rent by City shall constitute a month-to-month
extension of this Lease.
8. ASSIGNMENT AND SUBLETTING. Hartig shall not assign, sublet or
otherwise transfer the premises or any part thereof, and any attempted assignment,
subletting or transfer shall work an automatic forfeiture and termination of this Lease.
9. INSURANCE. Hartig shall obtain general liability insurance as set forth in the
City's Insurance Schedule for Lessee's of City Property as such schedule may from
time to time be amended. A copy of the current schedule is attached here to.
11. INDEMNITY Hartig will protect, defend, and indemnify City from and against
any and all loss, costs, damage and expenses occasioned by, or arising out of, any
accident or other occurrence causing or inflicting injury or damage to any person or
property, happening or done in, upon or about the premises, or due directly or indirectly
to the tenancy, use or occupancy thereof, or any part thereof by Hartig or any person
claiming through or under Hartig.
12. MECHANICS' LIENS. Neither Hartig, nor anyone claiming by, through, or
under Hartig, shall have the right to file any mechanic's lien against the premises.
13. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
A. The following shall constitute an event of default by Hartig: Failure to observe
or perform any duties, obligations, agreements, or conditions imposed on Hartig
pursuant to the terms of the Lease.
B. City shall give Hartig a written notice specifying the default and giving Hartig
ten (10) days in which to correct the default. If there is a default that cannot be
remedied in ten (10) days by diligent efforts of Hartig, Hartig shall propose an additional
period of time in which to remedy the default. Consent to additional time shall not be
unreasonably withheld by City. City shall not be required to give Hartig any more than
three notices for the same default within any 365 day period.
C. In the event Hartig has not remedied a default in a timely manner following a
Notice of Default, City may declare this Lease to be terminated and shall give Hartig a
written notice of such termination. In the event of termination of this Lease, City shall be
entitled to prove claim for and obtain judgment against Hartig for the reasonable
expenses of the City in regaining possession of the premises, including attorney's fees
and court costs.
D. In the event of termination of this Lease by City other than for Hartig's default,
Hartig shall be entitled to a pro rata abatement of rent.
14. NOTICES AND DEMANDS. All notices shall be given to the parties hereto
at the addresses designated unless either party notifies the other, in writing, of a
different address. Without prejudice to any other method of notifying a party in writing or
making a demand or other communication, such notice shall be considered given under
the terms of this Lease when it is deposited in the U.S. Mail, registered or certified,
properly addressed, return receipt requested, and postage prepaid.
15. PROVISIONS BINDING. Each and every covenant and agreement herein
contained shall extend to and be binding upon the respective successors, heirs,
administrators, executors and assigns of the parties hereto.
ClTYOF DUBUQUE, IOWA
By
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
David S. Hartig, Jr.
STATE OF IOWA
DUBUQUE COUNTY
: SS:
On this day of ,2004, before me, a Notary Public in
and for the State of iowa, in and for said county, personally appeared David S.
Hartig, Jr., to me personally known, who acknowledged the execution of this
instrument to be his voluntary act and deed.
Notary Public, State of Iowa
STATE OF IOWA
DUBUQUE COUNTY
: SS:
On this day of ,2004,, before me, a Notary Public in and for
the State of Iowa, in and for said county, personally appeared Terrance M. Duggan and
Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that
they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal
Corporation, created and existing under the laws of the State of Iowa, and that the seal
affixed to said instrument is the seal of said Municipal Corporation and that said
instrument was signed and sealed on behalf of said Municipal corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
Notary Public, State of Iowa
INSURANCE SCHEDULE A
INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY
OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE
1. Ail policies of insurance required hereunder shall be with an insurer authorized to do business in
Iowa. All insurers shall have a rating of A of better in the current A.M. Best Rating Guide.
Ali policies of insurance shall be endorsed to provide a thirty (30) day advance notice of
cancellation to the City of Dubuque if cancellation is prior to the expiration date. This
endorsement supersedes the standard cancellation statement on the Certificate of Insurance.
Hartig shall furnish a Certificate of Insurance to the City of Dubuque, Iowa for the coverage
required in Paragraph 6 below. Such certificates shall include copies of the following policy
endorsements:
a) Thirty day notice of cancellation to the City of Dubuque.
b) Commercial General Liability policy is primary and non-contributing.
c) Commercial General Liability additional insured endorsement.
d) GovemmentalImmunity Endorsements.
e) Waiver of recovery under workers cempensation.
4. Each certificate shall be submitted to the contracting department of the City of Dubuque.
Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the
City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a
material breach of this agreement.
6. Hartig shall be required to carry the following minimum coverage/limits or greater if required by
law or other legal agreement:
a) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit
Products-Completed Operations Aggregate Limit
Personal and Advertising Injury Limit
Each Occurrence Limit
Fire Damage Limit (any one occurrence)
Medical Payments
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
This coverage shall be written on an occurrence, not claims made, form per location. All
deviations or exclusions from the standard ISO commercial general liability form CG 0001
or Business owners form BP 0002 shall be clearly identified.
Governmental Immunity Endorsement identical or equivalent to form attached.
An additional insured endorsement identical or equivalent to ISO Form CG 2026 or CG
2011 and include as additional insureds: "The City of Dubuque, including all its elected
and appointed officials, all its employees and volunteers, all its boards, commissions
and/or authorities and their board members, employees, and volunteers."
POLICY NUMBER COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the follow'rog:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name of Person Or Organization:
The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all
its boards, commissions and/or authorities and their board members, employees, and volunteers.
(If no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown
in the Schedule as an insured but only with respect to liability arising out of your operations or premises
owned by or rented to you.
Copydqht. Insurance Services Office. Inc. 1994 CG 20 26 11 85
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
1.
Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the
purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does
not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under
Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time.
Claims Coveraqe. The insurance carrier further agrees that this policy of insurance shall cover only
those claims not subject to the defense of governmental immunity under the Code of Iowa Section
670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code
of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy.
Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for assertir~g any
defense of governmental immunity, and may do so at any time and shall do so upon the timely written
request of the insurance carrier.
Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this policy and the
insurance carder shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa
under this policy for reasons of governmental immunity unless and until a court of competent
jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of
Dubuque, Iowa.
No Other Chan~e in Policy. The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
MEMORANDUM
September 11,2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Acquisition and Demolition of 1650 Old Mill Road
Assistant City Engineer Gus Psihoyos is recommending that an amended request be
made to the Iowa Emergency Management Division to acquire a non-residential flood
prone property at 1650 Old Mill Road. There would be no cost to the City as the local
match would be provided by Mr. David Hartig in return for a 99-year lease on the vacant
property where the three previously acquired residential properties and this commercial
property stood. This lease will be subject to a public headng.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Miohael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, Assistant City Engineer
Mike Koch, Public Works Director
MEMORANDUM
September 10, 2003
TO:
FROM:
Michael C. Van Milligen, City Manager
Gus Psihoyos, Assistant City Engineer
SUBJECT: Acquisition and demolition of 1650 Old Mill Road
BACKGROUND
On September 16, 2002, by resolution, the City Council authorized the City Manager to
submit an application for financial assistance from the State of Iowa Emergency
Management Division under the Hazard Mitigation Grant Program (HMGP) to purchase
six (6) properties, five residential and one commercial, on Old Mill Road. Only the
commemiat property and three of the residential properties were considered
substantially damaged and thus eligible for assistance.
Due to the state's pfiodty to acquire substantially damaged residential properties, 1650
Old Mill Road, which is commercial, (see figure 1 ) was considered a Iow priority.
In December of 2003, the City Council endorsed letters to Senator Tom Harkin,
Representative Jim Nussle, and Senator Chuck Grassley requesting $46,000 in FEMA
funds specifically for the acquisition of 1650 Old Mill Road which is situated between
two of the substantially damaged residential properties.
On March 10, 2003, the Iowa Emergency Management Division (IEMD) notified the City
that the FEMA approved $201,596 in federal funding for the City's project application.
As a result, the project budget was established as follows:
Federal Share $201,596
State share (10%) 26,880
City (15% local share) 40,319
TOTAL $268,795
The budget was established based on the cost to purchase and demolish the ~ree
substantially damaged residential properties: 1695 Old Mill Road, 1699 Old Mill Road,
and 1620 Old Mill Road. Again, due to the state's priodty to acquire substantially
damaged residential properties and the general lack of funds for all project requests,
funding for the substantially damaged commercial property, 1650 Old Mill Road, was
not specifically provided.
Figure 1. 1650 Old Mill Road on June 4, 2002.
In Mamh of 2003, the City Council approved a Contract for Services with East Central
Intergovernmental Association (ECIA) for the administrative services associated with
the Grant Agreement between the City of Dubuque and IEMD.
DISCUSSION
According to Mr. Mark Schneider of ECIA, the balance of state and federal funds after
the acquisition of the three residential properties is $32,264.67. Mr. Schneider has
suggested that ECIA could draft an amendment request, on behalf of the City and the
property owner of 1650 Old Mill Road, to increase the project scope to include the
acquisition of the 1650 Old Mill Road Property.
Mr. David Hartig has committed, in writing, to the City that he will provide approximately
$16,850 as a local match toward the purchase of the property in return for a long term
(99 year) lease with the City for the commercial property and the three residential
properties already acquired.
BUDGETIMPACT
Following the same guidelines used to establish the purchase price of the residential
properties, the funding required to purchase and demolish 1650 Old Mill Road is as
follows:
Project Costs
Purchase pdce
Recording fee (estimate)
Closing costs (estimate)
Demolition (contractor's estimate)
Legal Fees for lease agreement with Mr. Hartig
TOTAL
Project Funding
Balance of State & Federal funds previously budgeted
FEMA Public Assistance funds for demolition
Funds provided by Mr. Hartig (includes required 15% local match)
TOTAL
$46,934.13
21.00
160.00
10,000.00
500.00
$57,615.13
$32,264.67
8,500.00
16,850.46
$57,615.13
This is a volunteer program. The City or the property owner of 1650 Old Mill Road can
decide against the HGMP at any time during the process.
There is no impact to the City budget.
RECOMMENDATION
I recommend that the City request ECIA to make an amendment request to IEMD, on
behaff of the City and the property owner of 1650 Old Mill Road, to increase the project
scope to include the acquisition of 1650 Old Mill Road.
In addition, I recommend that the City lease the three residential properties, 1620,1695,
and 1699 Old Mill Road and, upon acquisition funding approval from the EMD, 1650
Old Mill Road, to Mr. Hartig. Mr. Hartig has requested the following terms:
1) The lease would become effective as soon as the structures have been
demolished and cleared from the properties;
2) The length of the lease would be 99 years; and
3) Mr. Hartig would be responsible for maintaining the property as open green
space for the length of the lease.
Due to Mr. Hartig's generous centdbution towards the purchase of 1650 Old Mill Road,
the 99-year lease fee would be set at one dollar ($1.00).
ACTION REQUESTED
I respectfully request that the City Council authorize ECIA to make an amendment
request to IEMD to increase the project scope to include the acquisition of 1650 Old Mill
Road.
In addition, I respectfully request that the City Council authorize the City Manager to
negotiate a lease agreement with Mr. Hartig for 1695 Old Mill Road, 1699 Old Mill
Road, 1620 Old Mill Road, and 1650 Old Mill, should IEMD approve funding for
acquisition.
Prepared by Deron Muehring, City of Dubuque Engineering
CC:
Michael Koch, Public Works Director
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
Deron Muehdng, Civil Engineer II
Mark Schnieder, ECIA
David Hartig
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
A Re§ional Response to ca!
Suite 200
3999 Pennsylvania Avenue
Dubuque, IA 52002
July 9, 2003
City of Dubuque
Attn.: Mike Van Milligen, City Manager
50 West 13th St.
Dubuque, IA 52001
Dear Mike:
This letter is a follow up to our past discussions regarding the City's acquisition of the Pancratz
property located at 1650 Old Mill Road. Based on our last conversation I have completed the
following.
I obtained a quote for the demolition of the 1650 Old Mill Rd. structures including the buildings,
parking lots, and the capping of all utilities with the exception of the abandoned well. In addition
to the quote and well abandoment, we must complete an asbestos inspection prior to demolition.
Based on that quote, I am confident that the $10,000 figure for demolition that I used for budget
purposes should be very accurate.
I then discussed the project budget and the City's position with Mr. David Hartig. Mr. Hartig
understands that the City will not provide any funds on this project. Mr. Harfig understands the
position as evidenced in his commitment letter fi:om him to provide the City's match for this
pmjecL (See enclosed letter.) You will note that he desires a long term, 99-year lease for all four
of the Old Mill Road properties and will maintain them for the length of the lease as open green
space.
If all of these items meet with your approval, I will prepare an amendment request to the Iowa
Emergency Management Division to increase the project scope to include the acquisition of the
1650 Old Mill Road property.
PHONE [563) 556-4166 10WA ONLY (800) 942-4648 F~ (563) 556-0348 [-~AAiL ecia@ecia.org W£g SITE www.ecia.org
Dubuque Metropolitan Rrea Transportation Stud~' · Eastern Iowa Regional Housing Authorit~j. Region I Emplmjment and Training
o ECIR Regional Planning Rffiliafion · EClR Business Growth, In~ ·
July 9, 2003
Mr. Mike Van Milligen
Page 2
Thank you for the opporturfity to pursue this project and your review of this material. Please feel
free to contact me if there is any question and/or to authorize ECIA to prepare the amendment
request.
Sincerely,
Mark Schneider
Community Development Director
cc: David Hartig
Tim Pancmtz
Encl.
July 9, 2003
DAVID S. HARTIG, JR.
P.O. Box 604
Dubuque, IA 52004-0604
(563) 583-0408
City ofDubuque
Att~:MikeVanMilligen, CityManager
50West 13mSt.
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
Gram 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 will be $46,934.13. In addition to the purchase price, recording
fees and dosing 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 HMGP funds of $32,264.67 will be used toward the
purchase. In addition, the demolition is estimated at $I0,000.00 and that FEMA Public Assistance
will 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 required match funds above or below this
amount based on the actual costs upon project completion. I understand that the acquisition and
demolition oftlxis property mum 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 from the City forths
property (1650 Old Mill Road) and the 1620, 1695 and 1699 Old Mill Road properties that the City
July 9, 2003
Mr. Mike Van Milligen
Page 2
has already purchased through the HMGP 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 stmctures have been demolished and cleared from the properties, including
the removal of all utilities including the abandoned wells. The ground is to be bare ground at the
time of lease sigmng. I agree to assume respons~ility for seeding or sodding of all prop~ies, the
placement of trees as I deem appropriate and the general maintenance of the property for the term
of the lease.
Thank you for your consideration of my offer and the opportunity to assist the City with this
project and furore maintenance of these properties. Please feel free to contact me if there is any
question regarding my offer.
David Hartig
Mark Schneider, ECIA
t'im Pancratz