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Stealth Race C Prop Acq Prt Dbq i5~ ~~~ MEMORANDUM August 10,2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Notice of Intent to Acquire Stealth Race Cars Property in the Port of Dubuque Economic Development Director Bill Baum recommends City Council approval to send a letter to Terry and Linda Weidemann, owners of Stealth Race Cars property in the Port of Dubuque, officially notifying them of the City's intent to acquire their property. I concur with the recommendation and respectfully request Mayor and City Council approval. /11Î¿~/( ('J1 i~/L Miéhael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director ì u 5u~ ~<k~ MEMORANDUM August9,2004 FROM: Michael Van Milligen, City Manager William Baum, Economic Development Director .~ TO: SUBJECT: Notice of Intent to Acquire Stealth Race Cars property in the Port of Dubuque INTRODUCTION The purpose of this memorandum is to request City Council approval of a letter (Notice of Intent to Acquire) to Terry and Linda Weidemann, owners of Stealth Race Cars property in the Port of Dubuque. BACKGROUND On August 2, 2004 the City Council approved an amendment to the Greater Downtown Urban Renewal Plan, which identified the 23,100 square foot lot owned by Terry and Linda Weidemann as an "acquisition parcel". The Urban Renewal plan provides that the City will follow IDOT regulations in acquiring property and relocating businesses. Additionally, we are proposing to purchase the property using funds provided by our congressional delegation through the Department of Housing and Urban Development (HUD) Economic Development Initiative(EDI) program. DISCUSSION HUD regulations require the property owner be notified of the City's interest in acquiring the property and the basic rights and protections. A letter to Mr. and Mrs. Weidemann containing the required provisions is attached. The property owners have a right to fair market value, based upon an appraisal, and the tenants occupying the building have a right to relocation payments based on actual reasonable moving and reestablishment expenses. I have provided the property owners a copy of the appraisal and the brochure 'When a Public Agency Acquires Your Property". RECOMMENDATION I recommend the City Council approve the attached letter to the owners, officially notifying them of the City's intent to acquire their property in the Port of Dubuque. F:IUSERSIWBaumlSteatth Racing PropertyIMemo on notice of intent to acquire.doc August9,2004 Terry and Linda Weidemann 2237 Southway Dubuque, Iowa 52002 Re: Notice of Intent to Acquire Property Property located at 155 E. 5th Street, Dubuque, Iowa 52001 Dear Mr. and Mrs. Weidemann: The purpose of this letter is to formally notify ~ou that the City of Dubuque is interested in acquiring your property located at 155 E. 5 Street, Dubuque, Iowa; legally described as: Lots 7 thru 11. 2-12.2-13. 2-14. & 2-15. clus S.E. 6' of Lot 6. all in Block 29 DubuQue Harbor Imcrovement Comcanv Addition. and Lots A 11 & 2-11 in Industrial Sub #2. all in DubuQue. Iowa. This notice is to inform you of your rights under the Iowa Law and U.S. Department of Housing and Urban Development (HUD) regulations. If the City acquires the property, your are entitled to fair market value for the property, and your tenant will be eligible for relocation assistance according to the same Iowa Law and HUD regulations. The City's Economic Development Director, Bill Baum has provided you with a copy of an appraisal of the property, the State of Iowa (I DOT) acquisition/relocation information, and a brochure titled "When A Public Agency Acquires Your Property." Should you have any questions regarding the procedures, negotiations, or your right as a property owner, please contact Mr. Baum at 563 589-4393. Sincerely, Michael Van Milligen City Manager F:\USERS\WBaum\Stealth Racing Property\Letter of intentdoc i5~ ~~~ MEMORANDUM August 10, 2004 ..j TO: The Honorable Mayor and City Council Members ,-, , , ., FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to EDI Contract In June of 2003 the City received a $357,660 Economic Development Initiative (EDI) grant through our Congressional delegation for "land acquisition and cleanup" in the Port of Dubuque. The City was required to identify the proposed activities and project description in a more detailed application. The application approved by the City Council provided that the City would use the funds to assist in the cleanup of properties that have been acquired by the City. Economic Development Director Bill Baum recommends City Council approval of a request to the U.S. Department of Housing and Urban Development for an amendment to the EDI grant to allow this source of funding to also be used for property acquisition in the Port of Dubuque. I concur with the recommendation and respectfully request Mayor and City Council approval. ~t¡Jj L;;¡;)?1L- Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum. Economic Development Director Du~ ~~~ MEMORANDUM August 10, 2004 SUBJECT: Michael Van Milligen, City Manager William Baum, Economic Development Director lf~ / Amendment to EDI Contract TO: FROM: INTRODUCTION The attached resolution provides for the approval of an amendment to an Economic Development Initiative (EDI) grant from the Department of Housing and Urban Development to acquire property in the Port of Dubuque. DISCUSSION In June of 2003 the City received a $357,660 EDI grant through our Congressional delegation for "land acquisition and cleanup" in the Port of Dubuque. The City was required to identify the proposed activities and project description in a more detailed application. The application approved by the City Council provided that the City would use the funds to assist in the cleanup of properties that have been acquired by the City. The application was approved, and the City has been using the funds to demolish the buildings on the former Dubuque Hardwoods site, and prepare that site as well as the former Miller Trucking, Klauer, and Peavey sites for redevelopment. Article 1. A of the Grant Agreement executed between the City and HUD states: "Grant funds will only be used for activities described in the application." The City Council recently approved an amendment to the Greater Downtown Urban Renewal Plan identifying the Stealth Race Cars property in the Port of Dubuque as an acquisition parcel. On August 16, the City Council is being requested to approve a "letter of intent to acquire" property. In order to make sure the source of funding is available to purchase the property, the City must request an amendment to the Grant Agreement and budget, and submit the request to the Washington D.C. office of the Department of Housing and Urban Development for approval. I have prepared a proposed letter requesting the amendment, and a proposed amended budget for submission to HUD. Both are attached for City Council review. The attached resolution has also been prepared for City Council approval. RECOMMENDATION I recommend the City Council adopt the attached resolution, approving the amendment to the EDI Grant Agreement and budget. F:IUSERSIWBaumIEDI grantIMemo on amendment to ED! grant.doc RESOLUTION NO. 323-04 A RESOLUTION AUTHORIZING THE FILING OF AN AMENDMENT REQUEST TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Whereas, the Department of Housing and Urban Development (HUD) has been provided direction from Congress to assist the City of Dubuque in the clean-up and acquisition of properties in the Port of Dubuque, and Whereas, the City received grant award for Economic Development Initiative assistance in the amount of $357,660 to be used for the cleanup, mitigation, and site preparation of properties in the Port of Dubuque, and Whereas, the City has completed most of the cleanup, mitigation, and site preparation work, and desires to spend some of the funds for land acquisition purposes, specifically to purchase the Stealth Race Cars property in the Port of Dubuque; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the submission of a letter to HUD requesting an amendment to the application and Grant Agreement for the acquisition of Stealth Race Cars property in the Port of Dubuque is hereby approved. Section 2. That the Mayor is hereby authorized to execute the letter and any subsequent amendment to the Grant Agreement with HUD. Passed, approved, and adopted this 16th day of August 2004. Daniel E. Nicholson: Mayor Pro-Tem Attest: Jeanne F. Schneider, City Clerk F:IUSERSIWBaumIEDI grantlResolution approving EDI app amendment.doc August 16, 2004 Joanne Omega Government Technical Representative U.S. Department of Housing and Urban Development EDI-SP Staff, Room 7146 451 Seventh Street SW Washington, DC 20410 Ref: Project No: B-03-SP-IA-0193 $357,660 City of Dubuque, Iowa Dear Ms. Omega: The City of Dubuque received the above referenced FY 03 EDI grant for "land acquisition and cleanup" from our Congressional delegation in 2003. After the award letter was received, the City filed an application for the funds proposing the following project description: "The City of Dubuque is proposing to use the EDI program to assist in cleaning up properties acquired for the redevelopment of the Port of Dubuque. Four parcels of property consisting of approximately 15 acres have been acquired for redevelopment. Cleanup activities include demolition of existing structures, environmental mitigation, and site preparation." The City has accomplished this initial phase of the project. The purpose of this letter is to formally request an amendment to our application and grant agreement by adding the following to the Project Description: Acquisition of "Stealth Race Cars" Property in the Port of Dubuque The City will complete an Environmental Review and Release of funds prior to requesting drawdown for this activity. We are also requesting an amendment to our budget, which is enclosed. We look forward to your positive response. Sincerely, Terrance M. Duggan Mayor F:\USERSIWBaumIEDI grant\Amendment request.doc Project # B-03-SP-IA-0193 EDIBUDGETSUMMARY AMENDMENT #1 ACQUISITION/CLEAN UP OF PROPERTIES IN PORT OF DUBUQUE ORIGINAL AMEND#1 Administration and Legal.......................................$1,000 0 Architectural and Engineering.................................$ 3,545 $5,500 Project Inspection Fees....................................... $1,500 0 $116,000 Demolition, Removal, Site Work, and Mitigation .........$ 348,500 Property Acquisition/Relocation...............................$ 0 $236,160 0 Contingencies................................................... $ 3,660 TOTAL PROJECT COST $ 357,660 $357,660 F:IUSERS\WBaumIEDI grantlEDI BUDGET SUMMARY Amendment#1.doc