Iowa Natural Heritage Foundation AgreementMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Agreement with Iowa Natural Heritage Foundation
DATE: August 10, 2011
Dubuque
All-America city
2007
Planning Services Manager Laura Carstens is recommending the City enter into a
Purchase Agreement with the Iowa Natural Heritage Foundation to possibly expand the
size of the E.B. Lyons Interpretive Center site by 52 acres. A copy of the Purchase
Agreement is attached. City Attorney Barry Lindahl is recommending that the City
Council authorize the City Manager and City Attorney to negotiate the terms of the
Purchase Agreement and authorize the City Manager to execute the Purchase
Agreement on behalf of the City.
On August 20, 2011, 52 acres of land adjacent to the E.B. Lyons Interpretive Center will
be coming up for auction.
The City owns the E.B. Lyons Nature Center building and the 30 acres that surround the
building. All this property is part of the Mines of Spain State Park and is managed by
the State of Iowa Department of Natural Resources. Iowa Department of Natural
Resources Park Ranger Wayne Buchholtz supervises the State Park.
The Friends of the Mines of Spain, chaired by Dr. Douglas Olk, recently raised $1.8
million to renovate and expand the E.B. Lyons Interpretive Center building and install
new exhibits.
The Iowa DNR would support expansion of the land they manage and would, over time,
create trails and primitive camping in this new 52 acres if they were acquired by the
City. The land will also provide a buffer to surrounding development for the Mines of
Spain.
The City does not have funds available for the land purchase. The Iowa Natural
Heritage Foundation has agreed to acquire the property if there is a resale agreement in
place with the City. The Friends of the Mines of Spain has committed to attempting to
raise at least $50,000 to support the purchase.
The Purchase Agreement between the City and the Iowa Natural Heritage Foundation
would provide that the Foundation would purchase the property for whatever purchase
price the Foundation felt comfortable. The City would commit to apply for a $200,000
State of Iowa Resource Enhancement and Protection (REAP) grant in each of the next
two years. At the August 1, 2011 City Council meeting, the City Council approved
submission of the first REAP grant application.
If the City is successful in receiving both grants, the City would ofer to pay the Iowa
Natural Heritage Foundation $400,000, plus whatever the Friends of the Mines of Spain
and the Iowa DNR would contribute, to acquire the property.
If the City is successful in only one of the REAP grant applications, the City would offer
to pay that $200,000, plus $100,000 in City funds for the property. The source of City
funds is the recent land sale at Dubuque Industrial Center West.
If the City received none of these grants, then the City would offer to pay the Iowa
Natural Heritage Foundation $100,000 in City funds for the property.
The City would also apply for a $175,000 Land and Water Conservation Grant. This
could also be matched with the City's $100,000.
In no case would the City offer more than $400,000 (plus any funds from the Friends of
the Mines of Spain and the Iowa DNR) for the property, but not to exceed the actual
cost to the Iowa Natural Heritage Foundation to acquire the land.
The Iowa Natural Heritage Foundation might reject the City's offer, depending on how
much they paid for the property at auction.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Laura Carstens, Planning Services Manager
Marie Ware, Leisure Services Manager
Jenny Larson, Budget Director
Brian Fankhauser, Iowa Natural Heritage Foundation
Dr. Douglas Olk, Friends of the Mines of Spain
Wayne Buchholtz, Park Ranger, Iowa Department of Natural Resources
2
PURCHASE AGREEMENT
THIS AGREEMENT shall serve to identify the rights and duties of Iowa Natural Heritage Foundation, an
Iowa non -profit corporation, (hereinafter called "the Foundation "), and the City of Dubuque, Iowa (hereinafter called
"the City"), relative to the acquisition of the Bottoms Property (herein after called the Property) located in Dubuque,
Iowa, more particularly described as follows:
Lot 1 of JQ Acres in Section 1, Table Mound Township, Dubuque County, Iowa; Lot 1 of the North West
'/ of the South West 'A and the South West 1/4 of the North West 1/4 of Section 6, Township 88 North, Range 3 East
of the 5` P.M., Dubuque County, Iowa, according to the Government Survey and the respective recorded Plats
thereof
Containing 52.19 acres, more or less, herein referred to as the Property.
The City Council of the City, at its August 15, 2011 meeting, has agreed to purchase the Property from the
Foundation under the terms set forth herein, but does not at this time have sufficient funds available to consummate
such purchase. The City intends to apply for funds as described below which it will also use, upon receipt, to pay
such Purchase Price.
In order to assist the City in the purchase of the Property, the Foundation agrees to:
1. Purchase the Property .
2. Hold the Property for five years from the date of purchase to permit the City time to obtain
funding as follows:
The City will apply for a $200,000 State of Iowa Resource Enhancement and Protection (REAP)
grant in each of the next two years. At the August 1, 2011 City Council meeting, the City Council
approved submission of the first REAP grant application.
If the City is successful in receiving both REAP grants, the City will offer to pay the Foundation
$400,000, plus whatever funds, if any, received by the City from the Friends of the Mines of Spain
and the Iowa DNR.
The City will also apply for a $175,000 Land and Water Conservation Grant.
If the City is successful in only one of the REAP grant applications, the City will offer to pay that
$200,000, plus $100,000 in City funds for the property plus whatever funds, if any, received by the
City from the Friends of the Mines of Spain and the Iowa DNR.
If the City receives none of these grants, then the City will offer to pay the Foundation $100,000
in City funds for the property plus whatever funds, if any, received by the City from the Friends of
the Mines of Spain and the Iowa DNR.
In no case will the City pay more than $400,000 (plus any funds received by the City from the
Friends of the Mines of Spain and the Iowa DNR) for the Property, but not to exceed the actual
cost to the Foundation to acquire the land.
The Foundation is not obligated to accept the City's offer based on the foregoing conditions.
3. Take title to the Property in its name.
In order to provide assurances to the Foundation that the City may offer to purchase the Property from the
Foundation, the City will:
1. Execute this Purchase Agreement.
2. Timely pay the funds described above upon receipt by the City.
3. Provide copies of minutes and/or correspondence indicating that the necessary approvals,
herein above identified, have been obtained.
4. Examine the abstract prior to the time the Foundation becomes obligated to purchase the
Property.
5. Provide a certificate of liability insurance naming the Foundation as a co- insured.
Execution of this Purchase Agreement shall occur prior to the Foundation becoming obligated to the closing
of the purchase of the Property. This Agreement shall be and become null and void if an offer by the Foundation to
purchase the Property is not accepted by the title holder.
Upon receiving payment of the Purchase Price, the Foundation shall relinquish its rights under this
Agreement and convey all rights, title, and interest held by it in the Property to the City by way of a warranty deed,
free and clear of all liens and encumbrances.
The City agrees to subordinate its interests in the Property to any mortgage placed thereon by the
Foundation, reserving to the City the right to make sufficient payment of the Purchase Price directly to the mortgagee
to obtain the release of any such mortgage. Any such mortgage shall not be in excess of the Purchase Price nor the
balance thereof remaining unpaid at any given point in time.
Informational signs, pamphlets, interpretive and/or promotional materials and property signs used or
distributed by the City regarding the subject property shall make reference to the fact that "Acquisition assistance
was provided by the Iowa Natural Heritage Foundation."
The City shall maintain at least a Guardian ($100 -249) level membership in the Foundation during the terrn
of this Agreement. Such membership will help support the efforts of the Foundation on this and other conservation
projects in Iowa.
City of Dubugr Iowa
By:
City Manager
Iowa Natural Heritage Foundation
Title
By: Date
Title
8/17/11
Date
Legal Description