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WestBrook Subdivision Phase I_Amendment to AgreementMasterpiece on the Mississippi Dubuque blitil All- AmmicaCiity 1 I I r 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment of Agreement for Phase One of Westbrook Subdivision DATE: August 31, 2011 Planning Services Manager Laura Carstens is recommending approval of an Amendment to the Development Agreement with Callahan Construction, Inc. to correct the legal description for Phase One of Westbrook Subdivision. I concur with the recommendation and respectfully request Mayor and City Council approval. Michel C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: Dubuque AI- America City 1 ' 2007 Michael C. Van Milligen, City Manager Laura Carstens, Planning Services Manager . Amendment of Agreement for Phase One of Westbrook Subdivision August 30, 2011 INTRODUCTION This memo transmits an Amendment to the Development Agreement with Callahan Construction, Inc. to correct the legal description for Phase One of Westbrook Subdivision, for City Council review and approval. The 2004 Development Agreement, the March 2011 Amendment, and the proposed Amendment are enclosed. Westbrook Subdivision is located east of Seippel Road and north of Commerce Park. DISCUSSION The 2004 Development Agreement for Phase One of Westbrook Subdivision provides for City assistance in the form of interest -free loans for City utility extensions in exchange for the creation of affordable owner - occupied housing. In March of 2011, the City Council amended to the 2004 Agreement to extend the due date for all interest free loans and promissory notes executed by Developer to June 30, 2012. The 2004 Agreement refers to Lot A of Westbrook Subdivision, which subsequently was subdivided as Phase Two of Westbrook Subdivision. The proposed Amendment provides that the reference to Lot A is removed. All other provisions remain in effect. RECOMMENDATION City staff recommends approval of the enclosed Amendment to the 2004 Development Agreement with Callahan Construction, Inc. to correct the legal description for Phase One of Westbrook Subdivision by removing the reference to Lot A. Enclosures cc Maureen Quann, Assistant City Attorney Bob Green, Water Department Manager Gus Psihoyos, City Engineer Ron Turner, Land Surveyor Kyle Kritz, Associate Planner F:\ USERS \LCARSTEN \WP\ZONING \Westbrook Callahan Phase 1 \Memo Phase 1 Westbrook legal to MVM.doc 1 Prepared By and Return To: Jennifer A. Clemens- Conlon, 2080 Southpark Court, Dubuque, IA 52003 (563) 582 -2926 AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND CALLAHAN CONSTRUCTION, INC. This Amendment to Agreement Between the City of Dubuque, Iowa and Callahan Construction, Inc. is made and entered into by and between the City of Dubuque, Iowa [hereinafter "City "] and Callahan Construction, Inc. [hereinafter "Developer "] on the date indicated below. WHEREAS, an Agreement Between the City of Dubuque, Iowa and Callahan Construction, Inc. was entered into by and between said parties on or about June 29, 2004 and filed with the Dubuque County Recorder's Office on or about July 1, 2004 as Instrument No. 11716 -2004 of the records of Dubuque County, Iowa; and WHEREAS, said Agreement referenced the Developer's ownership of Lots 1 through 48, inclusive, of Block 1 and Lot A, of Westbrook Subdivision, Dubuque County, Iowa (the Subdivision); and WHEREAS, it has come to the attention of the undersigned parties that the inclusion of Lot A of Westbrook Subdivision, Dubuque County, Iowa in said legal description was in error; and WHEREAS, Lot A of Westbrook Subdivision in the City of Dubuque, Dubuque County, Iowa, has subsequently been subdivided and now comprises Westbrook Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa, which was established by a Plat filed May 18, 2011 as Instrument No. 2011 -7064 of the records of Dubuque County, Iowa; and Page 1 of 3 WHEREAS, both parties seek to amend the Agreement between the City and Developer for the promises and covenants contained herein to correct the error identified above. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: The reference in the Agreement Between the City of Dubuque, Iowa and Callahan Construction, Inc., said document having been filed July 1, 2004 as Instrument no. 11716 -2004 of the records of Dubuque County, Iowa, to real property described as Lots 1 through 48, inclusive, of Block 1 and Lot A; of Westbrook Subdivision, Dubuque County, Iowa, is hereby amended and substituted with the following: "Lots 1 through 48, inclusive, of Block 1 of Westbrook Subdivision, Dubuque County, Iowa." Both parties agree that said amended legal description shall be referred to within the Agreement as originally filed as "the Subdivision ". Further, both parties agree that "the Subdivision" does not include Lot A of Westbrook Subdivision, Dubuque County, Iowa. Attest: le 0,111740 CITY OF DUBUQUE, IOWA By: OL K- in Firns . hl Roy D. 1 : uol Acting City Clerk Mayor STATE OF IOWA ) ss: DUBUQUE COUNTY On this 6th day of September , 2011, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ROY D. BUOL and KEVIN FIRNSTAHL, to me personally known, who being by me duly sworn, did say that they are the Mayor and Acting City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; that said instrument was signed and sealed on behalf of the corporation by authority of its City Council, and that ROY D. BUOL and KEVIN FIRNSTAHL acknowledged the execution of the foregoing instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it and by them voluntar exec ter SUSAN M. WINTER COMMISSION NO.183274 �_ MY COMMISSION EXPIRES awe 2/14/14 Notary Public, State of Iowa Page 2 of 3 Masterpiece on the Mississippi Dubuque clay lilt! 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to Development Agreement for Phase One of Westbrook Subdivision DATE: March 29, 2011 Planning Services Manager Laura Carstens recommends City Council approval of an Amendment to the Development Agreement with Joel Callahan, President of Callahan Construction, for extension of City assistance for Phase One of Westbrook Subdivision. This amends the June 29, 2004 Development Agreement to provide that the due date for all interest free loans and promissory notes executed by Developer will be extended to June 30, 2012. All other provisions remain in full force and effect. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager Masterpiece on the Mississippi Dubuque ITO"! 2007 TO: Michael Van Milligen, City Manager �p� FROM: Laura Carstens, Planning Services Manager `� -'�" SUBJECT: Amendment of Development Agreement for Phase One of Westbrook Subdivision DATE: March 28, 2011 INTRODUCTION This memo transmits an Amendment to the Development Agreement with Joel Callahan, President, Callahan Construction, for extension of City assistance for Phase One of Westbrook Subdivision, for City Council review and approval. The 2004 Development Agreement and the proposed Amendment are enclosed. DISCUSSION The June 29, 2004 Development Agreement for Phase One of Westbrook Subdivision provides City assistance in the form of interest -free loans for City utility extensions in exchange for the creation of affordable owner - occupied housing. These loans were to be repaid in installments as lots were sold, and the remaining balance was to be paid in full in five (5) years. Mr. Callahan currently is behind schedule on utility extension repayments in the amount of $39,229.47 for water and sanitary sewer loans, and $1,821.34 in Engineering Department inspection fees. The enclosed Amendment to the 2004 Development Agreement provides that the due date for all interest free loans and promissory notes executed by Developer will be extended to June 30, 2012. All other provisions remain in full force and effect. RECOMMENDATION City staff recommends that the City Council review and approve the enclosed Amendment to the 2004 Development Agreement with Joel Callahan, Callahan Construction, Inc. for extension of City assistance for Phase One of Westbrook Subdivision. Enclosures cc Marie Ware, Leisure Services Manager Bob Green, Water Department Manager Gus Psihoyos, City Engineer Ron Turner, Land Surveyor Kyle Kritz, Associate Planner Tim O'Brien, Assistant City Attorney ALL - PURPOSE ACKNOWLEDGMENT STATE OF JO,AJ a_, COUNTY OF DI hLr ri2 } ss: On this &) day of /Ylarddt„ A.D. 2010, before me, the undersigned, a Notary Public in and for said State, personally _ eon 5' _ To me personally known Or proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument. (Sign Name) pp,r -1- 1tharn, u -- (Print Name) Nota Public in and for the State of Attest. ROBERT WEARMOUTH Commission Nu sr 7041 My Comm. Exp. '/ / -/ eanne F. Schneider, CMC City Clerk STATE OF IOWA ss: DUBUQUE COUNTY On this ' • day of , 2010, before me, the undersigned, a Notary Public in and for said County an State, personally appeared ROY D. BUOL and JEANNE F. SCHNEIDER, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; that said instrument was signed and sealed on behalf of the corporation by authority of its qty,qouncil, to Resolution Ndo. --- passed the- City Gouncit on the Li day of , 2010, and that ROY D. BUOL and JEANNE F. SCHNEIDER acknowledged the xecution of the foregoing instrument to be their voluntary act ardile and -the voluntary act and deed of the corporation, by it and by them vol arily ex- cut =d. CAPACITY CLAIMED BY SIGNER: INDIVIDUAL CORPORATE Titles of Corporate Officer(s): _Corporate Seal is affixed No Corporate Seal procured PARTNERSHIP: Limited_Gen'I ATTORNEY -IN -FACT EXECUTOR(s) or TRUSTEE(s) _GUARDIAN(s) or CONSERVATOR(s) OTHER: SIGNER IS REPRESENTING: Names of entity(ies) or person(s) CITY OF U yIOW R• 7D. Buol Mayor By: SUSAN M. WINTER COMMISSION NO.183274 MY COMMISSION EXPIRES 2/14/14 o = ry Public in and for sa d State Prepared by and return to: James A O'Brien 300 Main Street Suite 330 Dubuque IA 52001 563 583 -4113 AMENDMENT TO PHASE ONE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND CALLAHAN CONSTRUCTION, INC. This Amendment to Phase One Development Agreement (this "Agreement ") is entered into this day of , 2011, by and between the undersigned property owner (hereinafter referred to as the DEVELOPER) and the City of Dubuque, Dubuque County, Iowa (hereinafter referred to as the CITY). RECITALS The Developer and the City hereby amend the Development Agreement entered into June 29, 2004 for Phase One of Westbrook Subdivision as follows: 1. The due date for all interest free loans made to Developer by the City pursuant to the Agreement shall be extended to June 30, 2012. 2. The due date of the promissory notes executed by Developer to City pursuant to the Agreement shall be extended to June 30, 2012. 3. All other provisions of the Agreement shall remain in full force and effect. Dated: Mar(A �o j , 2011 11716-04 2o04 J111. —1 PM 2:29 itIr(r1YHH T WtLJi'. COUNTY ECO EN7, OUDUOUE C1..10 FEES Prepared by: Barry A. Lindahl, Corporation Counsel, 300 Main St, Dubuque, IA 52001 (563) 683-4113 AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND CALLAHAN CONSTRUCTION, INC. This Agreement Is made and entered into by and between the City of Dubuque, Iowa (City) and Callahan Construction, Inc. (Developer), this 4141- day of, Ivri a 2004. WHEREAS, Developer is the owner of the following described real property in the City of Dubuque, Iowa: Lots 1 through 48, Inclusive, of Block 1 and Lot A, of Westbrook Subdivision, Dubuque County, Iowa; (the Subdivision); and WHEREAS, Developer Is Interested in the sale of lots and/or the construction and sale of homes/units in the Subdivision for owner - occupied affordable housing; and WHEREAS, City is willing to grant incentives to Developer for the,sale of lots and /or the construction and sale of homes/units for owner - occupied affordable housing upon the terms and conditions set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. Eighty percent (80 %) of the lots in the Subdivision described above shall be affordable housing lots as defined herein and shall comply with the provisions as defined herein. 2. For purposes of this Agreement, an affordable housing lot shall mean a lot that meets the following standards: a. If it Is a lot for a single family dwelling: 1. The lot upon which a dwelling is constructed may not exceed 6500 square feet In area. 2. The street frontage of the lot may not be less than 50 feet and not more than 76 feet. 3. The constructed dwelling may not exceed 1200 square feet of finished space, excluding basements, attics, and garages. b. 4. The 2004 lot price may not exceed $26,500. For the sale of affordable housing ibis in 2005 and subsequent years, the maximum sales price for each of the Tots during each subsequent year shall be the amount obtained by multiplying $26,500.00 by a fraction, the numerator of which Is the Consumer Price Index - Seasonally Adjusted U.S. City Average For All Items For All Urban Consumers (1967 = 100) published monthly by the Bureau of labor Statistics of the United States Department of Labor ("CPI - U"), for December of the year Immediately preceding the year at issue, and the denominator of which is the CP1 -U for December of 2003. If it is a lot for a duplex/two- family dwelling: 1. The lot upon which a duplex/two family dwelling is constructed may not exceed a total of 7000 square feet. 2. The street frontage of the lot may not be less than 50 feet and not more than 100 feet. 3. The constructed dwelling may not exceed 1200 square feet of finished space per dwelling unit, excluding basements, attics and garages. 4. The 2004 duplex/two -family lot price may not exceed a total of $53,000 per lot. For the sale of an affordable housing duplex/two family lot in 2005 and subsequent years, the maximum sales price for each of the lots during each subsequent year shall be the amount obtained by multiplying $53,000.00 by a fraction, the numerator of which is the Consumer Price Index - Seasonally Adjusted U.S. City Average For All Items For All Urban Consumers (1967 = 100) published monthly by the Bureau of Labor Statistics of the United States Department of Labor ( °CPi -U'), for December of the year Immediately preceding the year at issue, and the denominator of which is the CPi -U for December of 2003. c. If It Is a lot for a multi- family dwelling. 1. The lot upon which a multi /three or more family dwelling is constructed may not exceed 6,500 square feet per dwelling unit. 2. The street frontage of the lot may not be less than 50 feet and not more than 180 feet. 3. The constructed dwelling may not exceed 1200 square feet of finished space per dwelling unit, excluding basements, attics and garages. • 4. The 2004 multi- family dwelling lot price shall not exceed $26,500 x the number of units the lot is platted for. For the sale of an affordable housing multi-family lot in 2005 and subsequent years, the maximum sales price -2- for each of the lots during each subsequent year shall be the amount obtained by multiplying the price calculated as Identified herein for 2004 by a fraction, the numerator of which is the Consumer Price index - Seasonally Adjusted U.S. City Average For All Items For All Urban Consumers (1967 a 100) published monthly by the Bureau of Labor Statistics of the United States Department of Labor ("Cpl -U "), for December of the year immediately preceding the year at issue, and the denominator of which Is the CPi -U for December of 2003. 3. If eighty percent (80 %) of the tots in the Subdivision identified above are designated as affordable housing lots, City shall provide to Developer the following Incentives: a. The minimum width of public street pavement width shall be 27 feet and the minimum right -of -way width shall be 42 feet. Parking shall be restricted to one side of the street only. b. Sanitary interceptor sewer connection fees will be waived on the R-2 portion of the subdivision. c. The lot frontage minimum for a single-family dwelling shall be 60 feet and the • maximum lot width for a single-family dwelling shall be 76 feet. d. Sanitary sewer mains shall be constructed using 8" PVC SDR26 pipe with 4" PVC laterals, except for lots adjacent to City`s future industrial park at the end of the cul -de -sac or otherwise denoted on the approved plans and specifications. This Incentive shall be applicable only If the Developer prohibits underground storage tanks within 300 feet of any R-2 lots. e. Water mains shall be constructed using 8" PVC C900 DR14 pipe, except for the east part of the Phase II cul- de -sac. This Incentive shall be applicable only if the Developer prohibits underground storage tanks within 300 feet of any R -2 lots. f. City will waive the $500 per acre sewer interceptor fee for the R-2 portion of the development. • g. City will waive the $1,000 rezoning fee and the $1,460 preliminary plat fee. h. City will provide interest free loans for water hookup fees for the R-2 lots only, to be repaid at the closing on the sale of each lot but to be paid in full in five (5) years regardless of the lot sales. I. City will provide an interest free $500 per acre loan for the sewer interceptor fee in the CS portion to be repaid as lots are sold but to be paid in full in five (6) years regardless of lot sales. -3- J. City will provide an Interest free loan for Installation of the sewer main for Phase I of R-2 section to be repaid as lots are sold but to be paid in full in five (5) years regardless of lot sales. k City will provide an Interest free loan for installation of the sewer collector portion of the sanitary sewer through the R-2 section to the north property line, to be repaid as lots are sold but to be paid In full In five (5) years regardless of lot sales. 1. City will provide an Interest free loan for the extension of two (2) sewer collectors through the CS section to the R -2 section, to be repaid as lots are sold but to be paid in full in five (5) years regardless of lot sales. m. City will provide an Interest free $75,000 loan for the installation of Internal water main and service lines for Phase I of the R-2 section, to be repaid as lots are sold but to be paid in full In five (5) years regardless of lot sales. n. City will accept dedication of a park area of approximately three (3) acres in a location acceptable to City and install a pavilion and playground equipment totaling approximately $150,000 in cost, after the street to the park Is completed and not sooner than six (6) years. 4. Developer agrees that no more than twenty percent (20%) of the lots In the Subdivision shall be sold for more than the maximum sales price for an affordable housing lot as defined herein. This paragraph shall not apply to the sate of any lot upon which a dwelling unit has been built at the time the lot is sold. 5. The Developer shall provide a copy of the purchase agreement and the declaration of value for the sale by developer of each affordable housing lot In the Subdivision to City's Building Services Department prior to the time of closing on the sale. Developer shall include in the agreement for the purchase of each affordable housing lot in the Subdivision, and in any deed conveying such affordable housing lot, a provision that if the purchaser or any subsequent purchaser of the lot does not construct a dwelling unit on the lot, then the purchaser or any subsequent purchaser shall be bound by the maximum sales price as determined by this Agreement and that In the event of a sate In excess of the maximum sales price, the seller shall pay to City, upon City's demand, the difference between the actual sales price and the maximum sales price as defined herein. 6. Developer agrees that eighty percent (80%) of the dwelling units in the Subdivision shall not exceed 1200 square feet In Interior finished space at the time of transfer of title to the purchaser. Except for the other twenty percent. (20 %) of the dwelling units In the Subdivision, for each dwelling unit constructed on an affordable housing lot with an Interior finished space In excess of 1200 -4- square feet at the time the unit is transferred to the purchaser, the party constructing said unit shall pay to the City a surcharge of $25.00 per square foot for each square foot In excess of said limit. Developer shall include in any agreement for the purchase of a lot or unit in the Subdivision, and In any deed conveying an affordable housing lot or unit, a provision that requires the party who constructs a dwelling unit with interior finished space in excess of 1200 square feet, to pay to the City a surcharge of $25.00 per square foot for each square foot in excess of said limit. 7. After a dwelling unit on an affordable housing lot has been transferred to a purchaser, the purchaser shall not be bound by the 1200 square feet restriction provided for in paragraphs 2 and 6 above and the purchaser may expand the exterior structure or interior finished square feet of the unit without limit, except as may be limited only by the size of the lot and other applicable laws. No penally 'shall be imposed, in accordance with paragraph 6, for any expansion of the exterior structure or Interior finished space occurring after transfer of title to the purchaser. ' 8. The Developer agrees that for development of any CS lot, exterior storage shall be prohibited on lots fronting Seippel Road. On all other lots, storage shall be limited to raw or finished goods and equipment, and shall occur only on the rear or side yards. Frontyard storage is prohibited. All exterior storage shall be screened to eliminate the visual impact of the items stored by obscuring them from view outside the premises. Screening materials shall be similar in color to the building, shall be 100% opaque, and shall be at least six (6) feet in height but no more than fifteen (15) feet in height. 9. In the event the Developer violates any requirement or condition of this Agreement, the Developer shall repay to the City any and all assessments waived under this Agreement, any connection fees waived under this Agreement and a penalty equal to fifteen percent (15 %) of the Developer's cost of street construction In the Subdivision. In addition, any money loaned by City to Developer shall bear an interest rate. of five and one -half percent ( 5 112%) per annum retroactive to the date the funds were borrowed. 10.The Developer agrees to file, prior to the sale of any lot in the Subdivision, restrictive covenants applicable to the subdivision which include a restriction prohibiting the rental or lease of any dwelling unit constructed on an affordable housing lot, except as specifically allowed herein and a prohibition of underground storage tanks within 300 feet of any R-2 tots, and outdoor storage restrictions and screening requirements In accordance with paragraph 8 above. 11. it is contemplated and assumed by this Agreement that an affordable housing lot or unit may be transferred by land contract and that an owner /occupant of an affordable housing unit may be a contract buyer pursuant to such a land contract. -5- 12. A rental agreement with an option to purchase shall be permissible and an owner /occupant of an affordable housing unit may be a tenant/buyer pursuant to a rental agreement with an option to purchase, provided that the term of rental shall not exceed a term of two (2) years. The lease purchase agreement must be approved by the City of Dubuque Housing Department. 13. The provisions of this Agreement are binding upon the parties, purchaser, successors, heirs and assigns of each lot and unit only until such time as the property is transferred to the first owner /occupant. Thereafter, so as to allow the homes to grow with the needs and financial abilities of the owner /occupant, the restrictions identified herein no longer apply. 14. This Agreement shall terminate twenty (20) years from the date if its execution. 15. Upon execution of this Agreement, the City shall promptly record this Agreement with the Dubuque County Recorder. • CITY OF DUBUQUE, IOWA Attes e."(7,10- /eat) By: Jeanne F. Schneider, CMC City Clerk STATE OF IOWA ) DUBUQUE COUNTY ) ss: On this day o ,,C/ , 2004, before me, the undersigned, a Notary Public in and for said ounty and State, personally appeared TERRANCE M. DUGGAN and JEANNE F. SCHNEIDER, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; that said Instrument was signed and sealed on behalf of the corporation by authority of its City Council, as- contained -in Resolution No, pasced-by- the -city Couneii -en the day of and that TERRANCE M. DUGGAN and JEANNE F. SCHNEIDER acknowledged the execution of the foregoing instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it and by them voluntarily executed. -6- Attest: !:t s tflF+ IL WINTER C.)141 SSION IJO. 103274 MY COMMISSION EXPInES 21!4/05 CALLAHAN CONSTRUCTION, INC. B Joe Cal ahan President STATE OF IOWA ) ) as. DUBUQUE COUNTY ) On this day of Jv4.' , 2004, before me, the undersigned, a Notary Public in and for said State, personally appeared Joel Callahan, to me personally known, who being by me duly sworn, did say that he Is the President of said corporation; that [no seal has been procured by the said corporation]; that said Instrument was signed [and sealed] on behalf of said corporation by authority of Its Board of Directors; and that the said Joel Callahan, as such officer, acknowledged the execution of said Instrument to be the voluntary act and deed of said corporation, by It and by him voluntarily executed. • ROBERT WE Ar rot, 1.11 Commission Navin/ 4 Y Comm. b .ate Notary Public in and for said Stake