Old Mill Rd property to HartigMEMORANDUM
February 10, 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 three residential properties at
1620, 1695 and 1699 Old Mill Road, and the commercial property at 1650 Old Mill Road
which the City will be acquiring on February 17, 2004. The lease requires that the .
property be maintained as green space and a nature preserve.
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.
Micha ~'~¢~~1 C. Van Millig6~n
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, Assistant City Engineer
MEMORANDUM
February 9, 2004
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Gus Psihoyos, Assistant City Engineer
Lease of Old Mill Road Properties to David S. Hartig, Jr.
INTRODUCTION
David S. Hartig, Jr. has proposed a long-term lease of three City-owned
properties at 1620, 1695, and 1699 Old Mill Road, and the commercial property
at 1650 Old Mill Road which the City will be acquiring on February 17, 2004.
Mr. Hartig is contributing $16,850 to the City to be used for the acquisition of this
flood-damaged commercial property.
The Lease Agreement provides for a 99-year term for the four properties. The
Lease Agreement will require that the properties be maintained as green space
and a nature preserve.
RECOMMENDATION
I recommend that the City Council approve the 99-year Lease Agreement with
Mr. David S. Hartig, Jr. for the residential property at 1620, 1695, and 1699 Old
Mill Road and the commercial property at 1650 Old Mill Road.
ACTION TO BE TAKEN
I respectfully request that the City Council adopt the attached resolution
approving the 99-year Lease Agreement with Mr. David S. Hartig, Jr. for the
residential properties at 1620, 1695, and 1699 Old Mill Road and the commemial
property at 1650 Old Mill Road.
CC;
Michael A. Koch, Public Works Director
Ken TeKippe, Finance Director
Deron Muehring, Engineering
Mark Schneider, EClA, Suite 200, 3999 Pennsylvania Avenue, Dubuque,
IA 52002
David S. Hartig, 1496 Southern Avenue, Dubuque, IA 52003
Prepared by: Barry A. Lindah1300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 77-04
DISPOSING 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 pumhase 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 form of the attached Lease Agreement; and
WHEREAS, on February 16, 2004, the City Council pursuant to notice
published as required by law held a public headng on its intent to dispose of the
City Property pursuant to the Lease Agreement and overruled all objections thereto;
AND WHEREAS, the City Council finds that it is in the best interest of the City
to approve the Lease Agreement fo~ the City Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY.OF DUBUQUE, IOWA:
Section 1. The Lease Agreement in the form attached hereto is hereby
approved.
Section 2. The Mayor is hereby authorized and directed to execute the Lease
Agreement.
Section 2. The City Clerk is hereby authorized and directed to cause this
Terrance M. Duggan, Mayor
Attest: Jeanne F. Schneider, City Clerk
Resolution to be recorded with the Dubuque County Recorder.
Passed, approved and adopted this 16th day of February, 2004.
"
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COUtlTY fÅ’COf1lJ(R
Pre parer DUOUOUE CO,. IOWA F_~E~b(/J
Information Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563583-4113 7
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 lí~/day of (' /((/f24!~ , 2004.
by and between the City of Dubuque (City), whose address, for the purpo of this
Lease, is 50 W. 13th Street, Dubuque, lA, 52001 and David S. Hartig, Jr. (Hartig), whose
address for the purpose of this Lease is 1495 Southern Avenue, Dubuque, lA, 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
thereto belonging, for a term beginning on the ih 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, 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.
CITY OF DUBUQUE, IOWA
. ,
~~)ú ~~~
Jeanne F. Schneider, City Clerk 'J)e¡autr
q~!¿¿
STATE OF IOWA
55:
DUBUQUE COUNTY
On this ~ day of Fé.i5£..Jf!o..!2.-vJ 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.
CJ JL j). CV-
Notary Public, State of Iowa
~
lOW.
WILLIAM G. BLUM
COMMISSION # 190485
MY COM SSION EXPjRES
Db OJ 6-6
STATE OF IOWA
: 55:
DUBUQUE COUNTY
On this '?} tÁ day of AI,',) ai.£ , 004, , before me, a Notary Public in and for
the State of Iowa, in and for said county ersonally appeared Terrance M. Duggan and
Karen M. Chesterman to me personall nown, who being by me duly sworn did say
that they are the Mayor and Deputy 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 a d deed of said Municipal Corporation by it
volunt ilyexecuted.
INSURANCE SCHEDULE A
INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY
OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE
1. All 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 AM. Best Rating Guide.
2. All 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.
3.
Hartig shall furnish a Certificate of Insurance to the City of Dubuque, Iowa for the coverage
required in Paragraph 6 beiow. 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) Governmental Immunity Endorsements.
e) Waiver of recovery under workers compensation.
4. Each certificate shall be submitted to the contracting department of the City of Dubuque.
5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the
City of Dubuque. Faiiure 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/iimits 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 (anyone 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 exciusions 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 voiunteers."
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 following:
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, ali
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.
CoDvrioht Insurance Services Office. Inc. 1994
CG 20 2611 85
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
1,
Nonwaiver of Governmentallmmunitv. 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.
2.
Claims Coveraae. 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.
3.
Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting 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.
4.
Non-Denial of Coveraae. The insurance carrier shall not deny coverage under this policy and the
insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa
under this policy for reasons of governmentai immunity unless and until a court of competent
jurisdiction has ruled in favor of the defense(s) of governmentai immunity asserted by the City of
Dubuque, Iowa.
No Other Chanae in Policv. The above preservation of governmentai immunities shall not otherwise
change or alter the coverage available under the policy.
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
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 Coverage. 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 shalt be covered by the terms and conditions of this insurance policy.
Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any
defense of governmental immunity, and may do so at any time and sha~l do so upon the timely written
request of the insurance carder.
Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this policy and the
insurance carrier 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 Chanqe 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 commemiat
property stood. This lease will be subject to a public hearing.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mio~ael 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
commercial property and three of the residential properties were considered
substantially damaged and thus eligible for assistance.
Due to the state's priodty to acquire substantially damaged residential properties, 1650
Old Mill Road, which is commercial, (see figure 1 ) was considered a Iow pdodty.
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 three
substantially damaged residential properties: 1695 Old Mill Road, 1699 Old Mill Road,
and 1620 Old Mill Road. Again, due to the state's pdority 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 4,200~.
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 wdting, to the City that he will provide approximately
$16,850 as a local match toward the purchase of the property in retum for a long term
(99 year) lease with the City for the commercial property and the three residential
properties already acquired.
BUDGET IMPACT
Following the same guidelines used to establish the pumhase pdce of the residential
properties, the funding required to purchase and demolish 1650 Old Mill Road is as
follows:
Project Costs
Pumhase pdce
Recording tee (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 dudng 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
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 addition, 1 recommend that the City lease the three residential properties, 1620,1695,
and 1699 Old Mill Road and, upon acquisition funding approval from the IEMD, 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 contribution towards the pumhase 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 Milt, should IEMD approve funding for
acquisition.
Prepared by Deron Muehdng, 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 Red, ohM ~esponse ~o L~¢M [~eeds
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 M/Ii 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 abandonment, 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. Harfig
understands that the City will not provide any funds on this project. Mr. Hartig understands the
position as evidenced in his commitment letter from him to provide the City's match for this
project. (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.
[563) 556-4166 iOX/VA ONLY (800) 9424648 FAX [563) 556-0348 E-[L~,iL ecia@ecia.org WEB SITE www.eoa.or§
Dubuque Metropolitan Rrea Transportation Study · Eastern Iowa Regional Housing Authority - Region I Employment and Training
· EClA Regional Planning Rffiliation - ECLR Business Growth, Inco
July 9, 2003
Mr. Mike Van Milligen
Page 2
Thank you for the opportunity 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 of Dubuque
Atm. IVfike Van Milligen, City Manager
50 West 13t~ St
Dubuque~ IA 52001
RE: Old/Vfill Road properties
Dear Mike:
This letter is to confirm my intention to pay the City's required match in the Hazard Mifigaton
Gram Program (HMGP) to acquire the Paneratz 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 understand'mg 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 clos'mg 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 $10,000.00 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 tkis 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 of this propeaxy must not result in the City of Dubuque incurring any expense
whatsoever.
In return for this commitment I deske to obtain a long term (99 years) lease fi'om the City for this
property (1650 Old Mill Road) and the 1620, 1695 and 1699 Old/Vftll Road properties that the City
July 9, 2003
Mr. Mike Van Milligea
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 structures 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 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.
Thank you for your consideration of my offer and the opportunity to assist the City with this
project and future maintenance of these properties. Please feel free to contact me if there is any
question regarding my offer.
David Hartig ~
Mark Schneider, ECIA
· im Pancratz