Stealth Race Car Prop Weidemann
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MEMORANDUM
December 28, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Setting Fair Market Value of Property Owned by Terrance J. and Linda
Weidemann in the Port of Dubuque
Since May of 2004, City staff has been in discussions with Terry and Linda Weidemann
about the possibility of the City purchasing their property in the Port of Dubuque. After
months of discussions, the negotiations seem to be at an impasse. It is time to move to
the first step in the formal eminent domain process, which is setting the fair market
value.
Economic Development Director Bill Baum recommends that the City Council establish
the fair market value of the Terrance J. and Linda Weidemann (Stealth Race Cars)
property in the Port of Dubuque at the appraised value of $221,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
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MEMORANDUM
December 27,2004
TO: Michael Van Milligen, City Manager
FROM: William Baum, Economic Development Director /f~¿¿¿¿~~
SUBJECT: Setting Fair Market Value of property owned by Terrance J. and Linda
Weidemann in the Port of Dubuque
INTRODUCTION
The purpose of this memorandum is to request City Council approval of a resolution
setting fair market value for property (Stealth Race Cars) owned by Terrance J. and
Linda Weidemann in the Port of Dubuque.
BACKGROUND AND DISCUSSION
Since May of 2004, I have been having discussions with Terry and Linda Weidemann
about the possibility of the City purchasing their property in the Port of Dubuque.
Throughout the early summer of 2004, I met with the Weidemanns, their attorney Steve
Scott, and their son Mike Weidemann who operates Stealth Race Cars. They seemed
receptive to the concept of selling their property. We discussed the process involved,
the right to fair market value, and the payment of relocation costs for their son.
In August of 2004, the City Council approved an amendment to the Urban Renewal
Plan, identifying the property as an acquisition parcel. The City Council approved a
"notice of intent to acquire" the property, which was then sent to the owners and their
attorney.
In early September of 2004, I sent the Weidemanns an informal offer, based on the
Felderman Appraisals appraised value of $10 per square foot minus $10,000 for
demolition, and subject to City Council approval, for $221,000 for 23,1 00 square feet.
Shortly after that, Barry Lindahl and I met with the owners and their attorney to review
my letter and the appraisal.
On December 10, 2004, Barry, I, and Pam Myhre again met with the Weidemanns to
discuss the acquisition. We have not been able to agree on a purchase price for the
property.
RECOMMENDATION
After months of discussions and negotiations, we seem to be at an impasse. We need
to now move to the first step in the formal eminent domain process, which is setting the
fair market value of the property by the City Council at not less than the appraised
value. I recommend the City Council establish fair market value at the appraised value
$221,000 and authorize the commencement of formal negotiations with the property
owners.
ACTION REQUESTED
The City Council is being requested to approved the attached resolution Establishing
the Fair Market Value of Certain Real Property owned by Terrance J. and Linda
Weidemann in the City of Dubuque.
F:\USERS\WBaum\Stealth Racing Property\Memo on setting fair market value with Barry changes.doc
RESOLUTION NO. 4-05
ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL
PROPERTY OWNED BY TERRANCE J. AND LINDA WEIDEMANN IN
THE CITY OF DUBUQUE, IOWA
WHEREAS, the City of Dubuque (City) intends to acquire certain real
property owned by Terrance J. and Linda Weidemann (Owners), legally
described as follows (the Property):
Lots 7 thru 11. 2-12.2-13. 2-14. & 2-15. plus S.E. 6' onot 6. all in Block 29
Dubuque Harbor Improvement Companv Addition. and Lots A11 & 2-11 in
Industrial Sub #2. all in Dubuque. Iowa.
as shown on Exhibit A attached hereto for all of the purposes permitted by the
Urban Renewal Plan for the Greater Downtown Urban Renewal District;
AND WHEREAS, Iowa law requires that City must make a good faith
effort to negotiate with the Owners to purchase the Property before proceeding
with condemnation;
AND WHEREAS, City may not make an offer to purchase the Property
which is less than the fair market value City has established for the Property;
AND WHEREAS, City has caused an appraisal of the Property to be
made and the appraised value of the Property is $221,000.
AND WHEREAS, the City Council now desires to establish the fair market
value of the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF
THE CITY OF DUBUQUE, IOWA AS FOllOWS:
1. The fair market value of the Property is hereby established to be
$221,000.
2. The City Manager and the Corporation Counsel are hereby authorized
to commence negotiations with the Owners of the Property and any other
interested parties for the purchase of the Property for a purchase price which is
not less than the fair market value established by this Resolution.
Passed, approved and adopted htis 3rd day of January, 2005.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Attest:
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eanne F. Schneider, City Clerk