Railroad Ave vacate HyVee req
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MEMORANDUM
August31,2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Vacating Petition - Railroad Avenue
'"
In response to a request from HY-VEE, Inc. to vacate Railroad Avenue from Locust
Street to Harrison Street, Acting Public Works Director/City Engineer Gus Psihoyos
states that the City has no plans for the utilization of that portion of Railroad Avenue to
be vacated, after the public utilities have been relocated. Acting Public Works
Director/City Engineer Gus Psihoyos recommends City Council approval of the vacation
of Railroad Avenue from Locust Street to Harrison Street, that the purchase price be
established by City Council, plus the relocation of all utilities, platting, publication and
filing fees, and that a public hearing be set for September 20, 2004.
Hy-Vee is taking the position that the cost to them for the land should be $1.00 because
the cost to relocate the utilities is $269,240, which is greater than the $117,000
appraised value of the property if there were no utility relocates. At the public hearing, I
will advocate that the City ask $117,000 for the property plus all costs, including utility
relocation.
The City of Dubuque owns a piece of very valuable property near a major intersection
with very high traffic counts, good visibility and already existing access. I recognize that
the property has high development costs, but this is neither an urban blight area nor a
targeted industry and, therefore, I do not believe there is a reason to discount the land.
I concur with the recommendation to vacate the property and set a public hearing and
respectfully request Mayor and City Council approval.
111{)tl V"lf2LfL
Mich~el C. Van Milligen -------
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Acting Public Works Director/City Engineer Gus Psihoyos
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MEMORANDUM
August 30, 2004
FROM:
Michael C. Van Milligen, City Manager Q
Gus Psihoyos, Acting Public Works Director .~. "?
TO:
SUBJECT: Vacating Petition - Railroad Avenue
INTRODUCTION
This is in response to a request from HY-VEE, Inc. for the vacating of Railroad
Avenue from Locust Street to Harrison Street dated July 1, 2004.
DISCUSSION
The attached plat shows the area of Railroad Avenue from Locust Street to
Harrison Street proposed to be vacated. The abutting properties are owned by
or are under purchase agreement with HY-VEE, Inc.
The area to be vacated is divided into one lot numbered Lot 1A of Eagles Place
in the City of Dubuque, Dubuque County, Iowa. Lot 1A of Eagles Place in the
City of Dubuque, Dubuque County, Iowa, is an existing 64-foot wide street on
which public utilities exist. These utilities will be relocated at the expense of HY-
VEE, Inc. according to plans approved by City Engineering.
The property has been appraised at $5.05 per square foot, for a total of
$117,000, "as if vacant" prior to a Plat of Survey of the proposed vacating. The
appraised value was then adjusted by Felderman Appraisals for the relocation of
sanitary sewer, watermain, gas main, electricity, and telephone. The total utility
relocation costs are estimated to be $269,240. Performance and two
maintenance bonds will be required for sanitary sewer and watermain relocation
costs prior to the recording of the deed.
RECOMMENDATION
The City has no plans for the utilization of the Railroad Avenue from Locust
Street to Harrison Street to be vacated after the public utilities have been
relocated.
I would recommend that the area indicated by Lot 1A of Eagles Place in the City
of Dubuque, Dubuque County, Iowa, on the attached plat be vacated, and that a
public hearing be set for the disposition of the City's interest in the subject area
on September 20, 2004. I would further recommend that the purchase price be
established by City Council, plus the relocation of all utilities, platting, publication
and filing fees.
ACTION TO BE TAKEN
The recommendation of the City Manager should be approved and a public
hearing should be scheduled on the disposal of the property through adoption of
the enclosed resolutions and ordinance.
Prepared by Ronald J. Turner, P.L.S.
cc: HY-VEE, Inc.
RESOLUTION NO. 342-04
RESOLUTION OF INTENT TO DISPOSE OF CITY INTEREST IN LOT 1A OF
EAGLES PLACE IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA
Whereas, HY-VEE, Inc. has requested the vacating of Railroad Avenue from
Locust Street to Harrison Street; and
Whereas, IIW Engineers & Surveyors, PC has prepared and submitted to the
City Council a plat showing the vacated portion of Railroad Avenue from Locust Street
to Harrison Street and assigned lot number thereto, which hereinafter shall be known
and described as Lot 1A of Eagles Place in the City of Dubuque, Iowa; and
Whereas, the City Council of the City of Dubuque, Iowa has determined that this
Railroad Avenue from Locust Street to Harrison Street is no longer required for public
use, except for relocation of utilities, and vacating and sale of said street known as Lot
1A of Eagles Place in the City of Dubuque, Dubuque County, Iowa should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque intends to dispose of its interest in Lot 1A
of Eagles Place in the City of Dubuque, Iowa.
Section 2. That the conveyance of Lot 1A of Eagles Place in the City of
Dubuque, Iowa to HY-VEE, Inc. be contingent upon the payment of $117,000, plus
platting, publication and filing fees.
Section 3. The relocation of all utilities affected by the vacating of Railroad
Avenue from Locust Street to Harrison Street be engineered, constructed, and
inspected at the expense of HY-VEE, Inc. in accordance with the City of Dubuque
Standards and SpecifICations.
Section 4. That the City Clerk be and is hereby authorized and directed to
cause a notice of intent to dispose of said real estate to be published in the manner as
prescribed by law.
Passed, approved and adopted this 7'h day of September, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Prepared by: Ronald J. Turner, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589-4270
RESOLUTION NO.
RESOLUTION APPROVING PLAT OF PROPOSED VACATED
RAILROAD AVENUE FROM LOCUST STREET TO HARRISON STREET
Whereas, there has been presented to the City Council of the City of
Dubuque, Iowa, a plat dated the 11th day of August, 2004, prepared by IIW
Engineers & Surveyors, PC, describing the proposed vacated portion of Railroad
Avenue from Locust Street to Harrison Street; and
Whereas, said plat conforms to the laws and statutes pertaining thereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. That the plat dated the 11th day of August, 2004, prepared
by IIW Engineers & Surveyors, PC, relative to the real estate hereinabove
described be and the same is hereby approved, and the Mayor and City Clerk be
and they are hereby authorized and directed to execute said plat for and on
behalf of the City of Dubuque, Iowa.
Section 2. The relocation of all utilities affected by the vacating of
Railroad Avenue from Locust Street to Harrison Street be engineered,
constructed, and inspected at the expense of HY-VEE, Inc. in accordance with
City of Dubuque Standards and Specifications.
Section 3. That the City Clerk be and is hereby authorized and directed
to file said plat and certified copy of this resolution in the office of the Recorder in
and for Dubuque County, Iowa.
Passed, approved and adopted this
day of
2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
GRAPHIC SCALE
300 0 150 300
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(IN FEET)
1 INCH = 300'
PREPARED BY.
IIW ENGINEERS" SURVEYORS P.C.
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DUBUQUE, IOWA.
(55') 55.-2464
PLAT OF SURVEY
LOT 1A OF EAGLES PLACE IN THE CITY OF DUBUQUE. IOWA
A VACATED PORTION OF RAILROAD AVENUE LYING WEST OF THE WESTERLY RIGHT-OF-WAY liNE
OF HARRISON STREET AND EAST OF THE EASTERLY RIGHT-OF-WAY liNE OF SOUTH LOCUST
STREET, AND A PORTION OF REAL ESTATE RESERVED FOR ROAD PURPOSES RECORDED IN PLAT
BOOK 15, PAGE 68, DUBUQUE COUNTY RECORDER'S OFFICE, ALL IN THE CITY OF DUBUQUE, IOWA
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TOTAL AREA SURVEYED: 21,954 SQ. FT.
SURVEYED FOR, HY-VEE, INC.
PROPRIETOR: CITY OF OUBUQUE
OATE OF SURVEY: JULY 2004
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~OHNSON
COMPANY
Commercial Real Estate Brokerage,
Development and Management
August 12, 2004
VIA FAX (563-589-4205) and U.S. MAIL
Mr. Ron Turner
Engineering Department
City Hall
50 West 13th Street
Dubuque, IA 52001
RE:
Hy-Vee
Dubuque, Iowa
Dear Mr. Turner:
This letter refers to the current plans for Hy-Vee to demolish the former Eagle Supermarket on
West Locust Street, acquire additional property, and construct a new Hy-Vee Store of
approximately 78,500 square feet. In order to develop this store, it wiII be necessary to vacate
Railroad A venue and relocate the existing utilities.
Since the utilities are very large, the expense to relocate the utilities is expected to exceed
$250,000, Hy-Vee was previously advised that the right-of-way for Railroad Avenue was
appraised at $1 17,000. However, the appraiser did not consider the cost of utility relocation in
establishing this value. We would appreciate it if you could review this information with your
appraiser in hopes that the fair market value of this property could be reduced to reflect the
extraordinary cost for utility relocation.
Hy- V ee would be glad to provide any additional information to your staff to assist in the
appraisal of this land. Since this property is located in a fully developed area, the extraordinary
cost to relocate some of the existing utilities is substantial. We appreciate your review of this
matter.
Sincerely,
Tþ:~MP ANY
Bob Johnson
RHJ/an
cc: Dennis Ausenhus (via Fax - 515-267-2967)
Randy Downs (via Fax - 515-267-2935)
A ChainLinks.company
801 West 47th StrBet. SuitB 219' Kansas City, MissQuri 64112' TBlephQne: 816/561-5111' Fax: 816/S61-S551 . www.rhjQhnsQn.cQm
Felderman Apprsisals
1179 Iowa Street, Dubuque, lA 52001
(563) 557-1465 Office; (563) 588-4214 Fax
Web site: www.feidennans,com
August 17, 2004
City of Dubuque Engineering Dept
Ron Turner
50 W. 13th Street
Dubuque, lA 52001
RE: Railroad Avenue (to be vacated) Appraisal, effective date 24 May 2004.
2004.
This is not a stand-alone document, and refers to the original report dated 24 May
As per your request for comments regarding the estimated costs to remove the
underground utilities on the subject lot.
The appraiser was provided infonnation that indicates a total cost of $269,240
(sanitary sewer $44,440, water main $74,800, gas $40,000, electricity $70,000, telephone
$40,000).
The original appraisal detennined an estimated market value of$117,OOO. If the
actual costs to make this site usable exceed the detennined value, then the site has no
current value.
~
R. J. Feldennan
I ----;t\JL-01-2004 THU 11:07 AM
FAX NO, 5152672967
p, 01102
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July 1, 2004
VIA FACSIMILE 563-589-0890
VIA OVERNIGHT MAIL
The Honorable Mayor Te/TIlllce Duggall
and City Council Members
clo City Clerk Jeanne Sclmeidcr
City Hall
50 West 13th Strc:et
Dubuque, IA 52001
Re:
Request for Street Vacation and Purchase
Proposed Hy-VeeFood Store No.3 - Dubuque, Iowa
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Dear Mayor Duggan and City Council Members:
Hy- Vee, Inc. would request that consideration be given to vacating Railroad Avenue between
HaITison Street and West Locust Street. Upon vacation, we'd request that Hy-Vee be allowed to
purchase that portion of real estate from the City of Dubuque in order to include it in the land
area that would be used in redeveloping a new Hy-Vee Food Store.
Hy- Veo, Inc. presently owns the previously occupied Eagle Food Store parcel adjacent to
Railroad Avenue and has the property directly sO't:tth of Railroad Avenue also under contract.
We are proposing to combine all three parcels of property into one ownership, allowing LL~ to
develop anew, modem. 21" Century Hy-Voe Food Store. We would propose to construct II new
approximately 70,000 square foot food store with a 4,200 square foot Hy- V ee Gas Station out in
front adjacent to the existing Burger King outlot. Our preliminary plans would also includc a car
wash to he developed by others immediately east and adjacent to the fly-Vea Gas parcel. Our
proposal would require reroLltíng existing Utilities in the Railroad Avenue right-of-way. We arc
presently in contact with each of the respective utility comparues relative to rclocatioT1 alignment,
cost, and scheduJing.
We have contacted the Engineering Department, and they have indicated a favorable condition
for the vacating but may need casements reserved for uti lilies, We undcrst;md that the vacated
area would need to be surveyed and platted at our expense and a fee paid for the parcel plus
publication artd tiling fees. Ple.1Se call me at 515-267-2837 ¡fyou have questions.
HyNee, Inc.
5820 We,rawn Pari<way. West Des Moin." low. 50266
Phone: 1515) 267-2800
,l-01-2004 THU 11:07 AM
FAX NO, 5152672967
P. 02/02
The Honorable Mayor Terrance Duggan
and City Council Members
July I, 2004
Page 2
If this meets with approval, we would request an opportunity to negotiate the purchase price of
this parcel to the mutual satisfaction of both parties. We appreciate your cooperation and
assistance, and look forward to working with the City as we pursue the rcdevelopmellt of this
retail area. Thank you.
Sincerely,
DAita
~
Sr. Vice President, Real EstatclEngineering
pc:
ROll Pearson
Ric Jurgens
Ken Waller
James D, Meyer
Mark Brauer
Bob Johnson
Prepared by: Ronald J. Turner, City of Dubuque, 50 W. 13'" Street, DubuquB, IA 52001 (563) 589-4270
ORDINANCE NO.
ORDINANCE VACATING RAILROAD AVENUE FROM LOCUST STREET TO
HARRISON STREET
Whereas, HY-VEE, Inc, has requested the vacating of Railroad Avenue from
Locust Street to Harrison Street; and
Whereas, IIW Engineers & Surveyors, PC has prepared and submitted to the
City Council a plat showing the vacated portion of Railroad Avenue from Locust Street
to Harrison Street and assigned a lot number thereto, which hereinafter shall be known
and described as Lot 1A of Eagles Place in the City of Dubuque, Dubuque County,
Iowa; and
Whereas, the City Council of the City of Dubuque, Iowa has determined that
Railroad Avenue from Locust Street to Harrison Street is no longer required for public
use, and that existing utilities will be relocated at the expense of HY-VEE, Inc. and
vacating of said portion of Railroad Avenue from Locust Street to Harrison Street known
as Lot 1A of Eagles Place in the City of Dubuque, Dubuque County, Iowa should be
approved,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1, That the real estate described as Lot 1A of Eagles Place in the City
of Dubuque, Iowa, be and the same is hereby vacated.
Section 2. The relocation of all utilities affected by the vacating of Railroad
Avenue from Locust Street to Harrison Street be engineered, constructed, and
inspected at the expense of HY-VEE, Inc. in accordance with City of Dubuque
Standards and Specifications.
Passed, approved and adopted this
day of
,2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
Prepared by: Ronald J. Turner, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589-4270
RESOLUTION NO.
RESOLUTION DISPOSING OF CITY INTEREST IN LOT 1A OF
EAGLES PLACE IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA
Whereas, pursuant to resolution and published notice of time and place of
hearing, published in the Telegraph Herald, a newspaper of general circulation
published in the City of Dubuque, Iowa on this - day of , 2004,
the City Council of the City of Dubuque, Iowa met on the day of
, 2004, at 6:30 p.m. in the Public Library Auditorium, 360 West 11
Street, Dubuque, Dubuque County, Iowa to consider the proposal for the sale of
real estate described as:
Lot 1A of Eagles Place in the City of Dubuque, Dubuque County, Iowa
Whereas, the City Council of the City of Dubuque, Iowa overruled any and
all objections, oral or written to the proposal to sell such real estate, except for
easement as noted,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1, That the sale of City of Dubuque real property described as
Lot 1A of Eagles Place in the City of Dubuque, Iowa to HY-VEE, Inc. be and the
same is hereby approved for the sum of $117,000, plus cost of publication,
platting and filing fees. Conveyance shall be by Quit Claim Deed,
Section 2. The relocation of all utilities affected by the vacating of
Railroad Avenue from Locust Street to Harrison Street be engineered,
constructed, and inspected at the expense of HY-VEE, Inc. in accordance with
City of Dubuque Standards and Specifications.
Section 3 That the Mayor be authorized and directed to execute a Quit
Claim Deed, and the City Clerk be and is hereby authorized and directed to
deliver said deed of conveyance to HY-VEE, Inc. upon receipt of the purchase
price in full,
Section 4. That the City Clerk be and is hereby authorized and directed
to record a certified copy of this resolution in the offices of the City Assessor,
Dubuque County Recorder and Dubuque County Auditor.
2004.
Attest:
Passed, approved and adopted this
Jeanne F, Schneider, CMC, City Clerk
day of
Terrance M. Duggan, Mayor
ACCEPTANCE OF RESOLUTION NO.
I, the undersigned, , representing HY-VEE,
Inc., having read the terms and conditions of the Resolution No. _-04, and
being familiar with the conditions thereof, hereby accept this same and agree to
the conditions required therein.
Dated in Dubuque, Iowa, this
day of
2004.
By: