Sale of Property_1052 Rush StreetMasterpiece on the Mississippi
Mir✓hael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Dubuque
kittini
AIEAmmicaCity
IIIII,
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set Public Hearing for the Disposition of Property at 1052 Rush Street
DATE: July 13, 2011
Economic Development Director Dave Heiar is recommending the sale of a City -owned
vacant lot at 1052 Rush Street to Routley Construction for $5,000 for participation in the
East Central Intergovernmental Association plan for the Iowa Department of Economic
Development Single - Family New Production Round #2 Program, and that a public
hearing be set for August 1, 2011, to consider disposal of the property.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
DATE: July 12, 2011
Dubuque
AI- AmedcaClty
I
m
2007
FROM: David J. Heiar, Economic Development Director ti
SUBJECT: Set Public Hearings for the Disposition of Property on Rush Street and
Wood Street
INTRODUCTION
This memorandum presents for City Council consideration a Resolution setting a public
hearing on the disposition of City owned parcels on 1052 Rush Street and 1895 Wood
Street to Routley Construction to construct new houses.
BACKGROUND
ECIA submitted a development plan to the IDED for the Single - Family New Production
(SFNP) Round #2 program to provide down payment assistance to income qualified
households allowing them to purchase newly constructed homes in 13 cities in the ECIA
region, including Dubuque. The development plan included a project budget listing sale
prices of homes, prices which cannot be amended.
The Dubuque homes included two Habitat for Humanity houses with sale prices of
$100,000 in the program, the least expensive houses due to the HFH volunteer labor
and donated materials. HFH had to withdraw both houses because they could not get a
clear title to purchase one lot and the other lot was initially in the floodplain and an
ineligible site. Updated floodplain maps showed the site to be outside the floodplain,
however HFH had already excavated and poured the footings and foundation prior to
any environmental clearance work being done, making the site ineligible. HFH staff
informed ECIA they do not intend to construct another new house until sometime in
2013 at the earliest. As a result ECIA was unable to work with HFH with this program.
However, ECIA was locked into the $100,000 sale price per house that was included in
the development plan budget.
ECIA has a contractor (Routley Construction) who is willing to work with them and build
two 1,052 SF houses with 3- bedrooms, 2- baths, rough -in a full basement for future
bath, 2 -car garage and sell the houses for $100.000 each if the contractor can secure
inexpensive lots. Routley Construction has been in business for 25 years, has built 75
homes, and has experience building homes in this price point. ECIA anticipates the
houses will actually have values above $100,000; however they are locked into the
$100,000 sale figure. The Planning Department previously made ECIA aware of several
City -owned lots that the City may be interested in disposing. Currently there is a lot on
Rush St. that would be great for building. There is also a lot on Wood St. however that
lot would require significant excavation (see attached maps). The contractor indicated
he could pay $5,000 for the Rush St. lot and $1 for the Wood St. lot, while still staying
within budget. If the lot cost is higher than these amounts, the contractor will need to
reduce the size or some of the features in the houses.
DISCUSSION
Routley Construction is requesting that the City consider selling the Rush St. property
for $5,000 and the Wood St. property for $1. ECIA has approved applicants for the
houses and the contractor could begin construction as quickly as we can obtain
environmental clearances, estimated to be received within six weeks. Further, the SFNP
program requires a minimum of 51% of the houses constructed in the program be sold
to households with 80% of the county median household income, which both applicants
are eligible. ECIA has been required to delay the entire SFNP program until they can
meet the 51% and these two new houses would help ECIA in meeting that goal.
In this past week, the City was also contacted by Michelle Conlan, the owner of the lot
abutting the City's Wood Street lot. She plans to provide a written offer on this City lot
for $11,900. Although the initial purchase price is more, the proposal from ECIA will
provide in fill development on the site that will increase the property tax base of this lot.
RECOMMENDATION
I am recommending that the City Council approve the attached resolution setting a
public hearing for August 1, 2011 to dispose of properties on Rush Street and Wood
Street to Routley Construction pending an acceptable Development Agreement which
assures that a single family house will be constructed on each lot as part of the SFNP
program sponsored by ECIA.
ACTION STEP
The action step is to approve the attached resolution.
F: \USERS \Econ Dev \ECIA\20110712 Sale of property to ECIA for SFNP memo.docx
2
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
A Regional Response to Local Needs
July 7, 2011
MEMO TO: Michael Van Milligen
FROM: Mark Schneider %zt
RE: New Production Round #2 and City -owned lots
•
7600 Commerce Park
Dubuque, IA 52002
ECIA submitted a development plan to the IDED for the Single - Family New Production Round #2
program to provide downpayment assistance to income qualified households allowing them to purchase
newly constructed homes in 13 cities in the ECIA region, including Dubuque. The development plan
included a project budget listing sale prices of homes, prices which cannot be amended.
The Dubuque homes included two Habitat for Humanity houses with sale prices of $100,000 in the
program, the least expensive houses due to the HFH volunteer labor and donated materials. HFH had to
withdraw both houses because they could not get a clear title to purchase one lot and the other lot was
initially the floodplain and an ineligible site. Updated floodplain maps showed the site to be outside the
floodplain, however HFH had already excavated for and poured the footings and foundation prior to any
environmental clearance work being done, making the site ineligible. HFH staff informed ECIA they do
not intend to construct another new house until sometime in 2013 at the earliest. As a result we are
unable to work with HFH with this program. However, we are locked into the $100,000 sale price per
house that was included in the development plan budget.
We have a contractor who is willing to work with ECIA and build two 1,052 SF houses with 3- bedrooms,
2- baths, rough -in in full basement for future bath, 2 -car garage and sell the houses for $100,000 each if
he can secure inexpensive lots. We anticipate the houses will have values above $100,000; however we
are locked into the $100,000 sale figure. The City Planning Dept. previously made us aware of several
City -owned lots that the City may be interested in disposing. Currently there is a lot on Rush St. that
would be great for building. There is also a lot on Wood St., however that lot would require a lot of
excavation. The contractor indicated he could pay $5,000 for the Rust St. lot and $1 for the Wood St. lot
and make his budget work. If the lot cost is higher than this, he indicated that he will need to reduce the
size or some of the features in the houses.
At this time, we are requesting that the City consider selling these lots at the above prices. We have
approved applicants for the houses and they could begin construction as quickly as we can obtain
environmental clearances, estimated to be approximately six weeks. Further, the program requires that
a minimum of 51% of the houses constructed in the program be sold to households with 80% of the
county median household income, which both of these would be. We are at a point where we have
been required to delay the entire program until we can meet the 51% and these would greatly assist us
in meeting that goal. Should these lots not be feasible, we will be required to either find lots in other
communities or reduce the overall scope of the program, which is not desirable for a variety of reasons.
PHONE (563) 556 -4166 IOWA ONLY (800) 942 -4648 RELAY IOWA (800) 735 -2943 FAX (563) 556 -0348 E -MAIL. ecia @ecia.org WEB SITE www.ecia.org
• Dubuque Metropolitan Area Transportation Study • Eastern Iowa Development Corporation •
• Eastern Iowa Regional Utility Services System • Eastern Iowa Regional Housing Authority • ECIA Business Growth, Inc. •
July 7, 2011
Mr. Michael Van Milligen
Page 2
In addition, there are houses to be constructed in twelve other ECIA member cities. Several of the cities
are struggling to find applicants and within the month we will need to either reduce the program scope
or move those houses to another city. The budgets for houses in the other cities were higher than the
HFH budgets I understand the City has at least one additional lot on Kaufmann Ave, that could
potentially be available as well. I would very much favor relocating at least one of these houses, if not
more to Dubuque and work with the City on any other City -owned lots to construct these houses. The
lot prices in the other communities range from $7,400 up to approximately $20,000.
We are requesting the following.
1. A quick decision, within the next two weeks at the outside is made on the potential sale of these lots
at the reduced price as that would allow us to move the program forward very quickly. A delay
beyond two weeks could result in the loss of the contractor here and elsewhere as material prices
continue to climb and we must have homes under construction this calendar year.
2. A listing other City -owned lots that could be made available for any houses that would be
"relocated" to Dubuque from other communities in the program. As noted above, the lot price on
these other lots would be more negotiable, We anticipate making the decision on relocating houses
by the end of July.
Please feel free to contact me or Nicole Turpin by e -mail (mschneider@ecia.org or nturpin(a ecia,org) or
by phone (213 -0286 (Mark's cell) or 690 -5774 (Nicole's direct line)) if there is any questions. We do
appreciate your consideration of this request and sincerely hope we are able to make this work to the
benefit of everyone.
July 13, 2011
Michael Van Milligen
City Manager
City of Dubuque
50 W. 13 Street
Dubuque, Iowa 52001
Dear Mr. Van Milligen:
As a participating contractor in the Single Family New Production Round 2 Program,
East Central Intergovernmental Association (ECIA) recently approached Routley
Construction to see if we could fill the loss of two $100,000 homes that were to be built
by Habitat for Humanity in the City of Dubuque. The issue is finding lots that are priced
affordable to make the program required $100,000 sell price work.
Upon surveying the City owned lots located on Wood and Rush Streets it was determined
that if Rush Street was purchased for $5,000 and Wood for $1.00 (due to the terrain,
more excavation would be required) the $100,000 sells price could be meet.
The houses would be 1,052 square foot, 3 bedroom, 2 bathroom house that would comply
with the Iowa Department of Economic Development Green Streets requirements. If the
City of Dubuque decides to sell these lots to Routley Construction, they would only be
available to qualified applicants participating in ECIA's Single Family New Production
Program. Houses would be constructed and sold within 1 year of the date of purchase
from the City of Dubuque.
Thank you for your time and consideration.
Sincerely,
Y
Jonath R outley
Rout y Construction
RESOLUTION
NO.232 -11
INTENT TO DISPOSE
OF AN INTEREST IN
CITY OF DUBUQUE
REAL ESTATE
AND
FIXING THE DATE FOR
A PUBLIC HEARING
• OF THE CITY
COUNCIL OF THE
CITY OF DUBUQUE,
IOWA ON THE
PROPOSED
DISPOSITION OF CITY
OWNED PROPERTY
TO ROUTLEY
CONSTRUCTION AND
PROVIDING FOR THE
PUBLICATION OF
NOTICE THEREOF
Whereas, the City of
Dubuque, Iowa (City) is
the owner of the
following real property
(the Property);
Lot 171 Union Addition
in the City of Dubuque,
Iowa (1052 Rush
Street); and
Whereas, East- Central
Intergovernmental
7 Association (ECIA) is
the sponsor of the
Single Family New
Production Program
(SFNP) (Sponsor); and
Whereas, City, has
tentatively agreed to
sell the Property to I
Routley Construction,
subject to the approval
of a Development
Agreement between 1
City and Routley by the
City Council which N OTICE OF A PUBLIC
Development Agree-
ment will include the
following conditions:
*Sale price $5,000 due
at closing
•Single family home
valued at $100,000
shall be constructed
within 12 months of
closing
•Contractor shall
participate in the SFNP
Program sponsored by
East Central Inter-
governmental Agency
and
Whereas, the City
Council has tentatively
determined that it
would be in the best
interests of the City to
approve the sale of the
Property to Routley which meeting the City
Construction. Council proposes . to
NOW THEREFORE, BE I take action disposing
IT RESOLVED BY THE
CITY COUNCIL OF THE i of the City's interest by
Deed to Routley
CITY OF DUBUQUE, 1 ConstrUction in the
IOWA: • following described
real estate:
Lot 171 Union Addition
in the City of Dubuque,
Iowa (1052 Rush
Deed to Routley Con- Street)
struction subject to the Subject to approval of
conditions described., a Development Agree-
ment which shall
include the following
conditions:
•Sale price $5,000 due
Section 1. The City of
Dubuque intends to
dispose of its interest
in the foregoing -
described Property by
Passed, approved and
adopted this 18th day
of July, 2011.
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl,
Acting Citj! Clerk
Published officially in
the Telegraph Herald
Newspaper the 22nd
day of July, 2011.
HEARING OF THE
CITY.. - CQUNCIL _ OF
THE CITY OF DUBU- r.
N OF THE '
OF THE CITY'S INTE-
REST IN CERTAIN I
REAL ESTATE TO
ROUTLEY CONSTRUC-
TION
PUBLIC NOTICE ;Is
hereby given that the
City Council of the City
of Dubuque, Iowa, will
hold a public hearing
on the 1st day of
August, 2011, at 6:30
p.m.
hambers City Council I
Historic Federal Build-
ing, 350 W. 6th Street,
Dubuque, Iowa, at
herein.
Section 2. The City
Clerk is hereby author-
ized and directed to at closing
cause this Resolution) *Single family home
and a notice to be valued at $100,000
scib eded as pre- shall be constructed
Section by Iowa• Code within 12 months of
Section 364.7 of a '
public hearing on the, closing .Contractor shall
of City's y
ty's intent to dispose participate in the SFNP
described Prooperty, per tgo l Program sponsored by
be held on day East Central Inter -
of f o'clock August, the 1st 6:30 0 I governmental Agency {
p.m. . 2011, at At the meeting, the
Council uncil Cr p.m. in n the City City Council will
the Historic Federal Co d l receive oral and
Historic Chambers written objections from I
Street, Building, W. 6th any resident or I
, D Dubuuqq ue, Iowa. � property owner of said
Sec 3. The Clerk is City to the above
hereby directed to I' action. After all objec-
cause io at least one 1 bons, have been
of li
o a notice e of made
m t notice of said received and con -
sidered, the City
meeting, in a hews_ 1 Council may at this
paper, , printed wholly meeting or at any
in the published' Iona adjournment thereof,
least once rage, - pu at I take additional action
g weekly, and -for the disposition having general , said I the City's n terest in
ration in said City, said r such real estate above.
publication days nor BY order of the City
more than four w days ay II Council said hearing
mo thae twe days 1i and appeals there from
before the date of said i,
meeting on the shall be held in
issuance of said I, accordance with and
obligations. governed by the
1 provisions of brie Code
of Iowa.
This notice is.iiVeri'
order Of the City
Council of the City of
Dubuque, Iowa, as
"provided by the Code
`of Iowa.
Dated this 22nd day of
July, 2011.
Kevin 5. Firnstahl
/s /Kevin S. Firnstahl, 1 Acting City Clerk of
1
Acting City Clerk . Dubuque, Iowa
1t 7/22 1 It 7/22
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Kathy Hefel - Goetzinger, a Billing Clerk for Woodward Communications, Inc.,
an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general
circulation published in the City of Dubuque, County of Dubuque and State of
Iowa; hereby certify that the attached notice was published in said newspaper on
the following dates: July 22, 2011, and for which the charge is $62.38.
/1
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this cfl day of , 20 ( .
y Public in and for Dubuque County, Iowa.
JANET K. PAPE
Commission Number 199659
My Comm, Exp. DEC 11, 2013
Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583 -4113
Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583 -4113
RESOLUTION NO. 232 -11
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE
AND
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA ON THE PROPOSED DISPOSITION OF CITY OWNED PROPERTY
TO ROUTLEY CONSTRUCTION AND PROVIDING FOR THE PUBLICATION OF NOTICE
THEREOF
Whereas, the City of Dubuque, Iowa (City) is the owner of the following real property (the
Property);
; and
Whereas, East - Central Intergovernmental Association (ECIA) is the sponsor of the
Single Family New Production Program (SFNP) (Sponsor); and
Whereas, City, has tentatively agreed to sell the Property to Routley Construction,
subject to the approval of a Development Agreement between City and Routley by the City
Council which Development Agreement will include the following conditions:
and
Lot 171 Union Addition in the City of Dubuque, Iowa (1052 Rush Street)
• Sale price $5,000 due at closing
• Single family home valued at $100,000 shall be constructed within 12 months of closing
• Contractor shall participate in the SFNP Program sponsored by East Central
Intergovernmental Agency
Whereas, the City Council has tentatively determined that it would be in the best
interests of the City to approve the sale of the Property to Routley Construction.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the foregoing -
described Property by Deed to Routley Construction subject to the conditions described
herein.
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 Property, to be held on the 1 day of
August, 2011, at 6:30 o'clock p.m. in the City Council Chambers at the Historic Federal
Building, 350 W. 6 Street, Dubuque, Iowa.
Section 3. The Clerk is hereby directed to cause at least one publication to be
made of a notice of said meeting, in a newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation in said City, said publication
to be not Tess than four days nor more than twenty days before the date of said meeting on
the issuance of said obligations.
Attest:
Passed, approved and adopted this 18 day of Jul , 2011.
Kevin S. Firnst- hI, Acting City erk
Duo
Buol, Mayor
NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE SALE OF THE CITY'S INTEREST IN CERTAIN REAL
ESTATE TO ROUTLEY CONSTRUCTION
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa,
will hold a public hearing on the 1 day of August, 2011, at 6:30 p.m. in the City Council
Chambers at the Historic Federal Building, 350 W. 6 Street, Dubuque, Iowa, at which
meeting the City Council proposes to take action disposing of the City's interest by Deed to
Routley Construction in the following described real estate:
Lot 171 Union Addition in the City of Dubuque, Iowa (1052 Rush Street)
Subject to approval of a Development Agreement which shall include the following
conditions:
• Sale price $5,000 due at closing
• Single family home valued at $100,000 shall be constructed within 12 months of closing
• Contractor shall participate in the SFNP Program sponsored by East Central
Intergovernmental Agency
At the meeting, the City Council will receive oral and written objections from any resident or
property owner of said City to the above action. After all objections have been received and
considered, the City Council may at this meeting or at any adjournment thereof, take
additional action for the disposition of the City's interest in such real estate above. By order
of the City Council said hearing and appeals there from shall be held in accordance with
and governed by the provisions of the Code of Iowa.
This notice is given by order of the City Council of the City of Dubuque, Iowa, as provided
by the Code of Iowa.
Dated this day of
Kevin S. Firnstahl
Acting City Clerk of Dubuque, Iowa
F: \USERS\Econ Dev\ECIA\20110718 ECIA Resolution Setting Public Hearing on sle of pr Rush St_bal.docx
2011.
Masterpiece on the Mississippi
DISCLAIMERI This Information was compiled
using the Dubuque Area Geographic Information System
(DAGIS), which Includes dew created by both the City of
Dubuque and Dubuque County. It Is understood that, while
the City of Dubuque and particpating agencies utilized the
most current end accurate Information available, DAGIS and
it's supplers do not warrant the accuracy or currency of the
Information or data contained herein. The City and participating
agences shall not be held liable for any direct, Indirect, incidental,
consequential, punitive, or special damages, whether foreseeable or
unforeseeable, arising out of the authorized or unauthorized use of
this data or the Inability to use this data or out of any breach of
warranty whatsoever.
Lo< ►� 1 l'l��:
50
City of Dubuque Property
PIN 1025384006 - between 1064 and 1040 Rush St
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DUBUQUE AREA GEOGRAPHIC INFO,MAflON MTV,
Map Prepared by: TWK
City of Dubuque
Engineering Division
50 West 13th Street
Dubuque, Iowa 52001
Phone: (563) 589-4270
Fax: (563) 589.4205
H: \Engineering \Maps for Staff
\Ron Turner \City Lots for Sale