FEMA - House PurchaseRESOLUTION NO. 396-00
RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY AT
3425 PENNSYLVANIA AVENUE
Whereas, the property at 3425 Pennsylvania Avenue, legally described as the East
80 Feet of the West 130 Feet of Lot 2 of Lot 2 of the South East 1/4 of the South East 1/4
of Section 21, Township 89 North, Range 2 East of the 5th P.M., in the City of Dubuque,
Iowa, is subject to periodic flooding; and
Whereas, the Federal Emergency Management Administration (FEMA) has agreed
to fund the purchase of the property in the amount of $112,728.00 as a flood mitigation
project, provided that the building is removed from the flood plain; and
Whereas, the City Council concurs with the purchase of said real estate and agrees
to the terms and conditions of the offer to buy real estate attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the attached VOLUNTARY ACQUISITION PROGRAM FOR
FLOOD-DAMAGED RESIDENCE OFFER TO BUY REAL ESTATE AND ACCEPTANCE
be approved.
Section 2. That the Mayor be authorized and directed to execute the real estate
agreement on behalf of the City Council.
Passed, adopted and approved this 21st day of August, 2000.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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VOLUNTARY ACQUISITION PROGRAM
FOR FLOOD DAMAGED RESIDENCE
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
To Cindy Gilligan, herein designated as "Seller".
The City of Dubuque, a municipal corporation of the State of Iowa (herein referred to as the
"City"), acting pursuant to this municipal powers in administering its Voluntary Flood Recovery
Program Project does hereby offer to buy all the Seller's right, title and interest in the real estate
locally known as 3425 Pennsylvania Avenue. DubuQJle, County of Dubuqlle, Iowa and legally
described as follows:
The east 80 feet of the west 130 feet of Lot 2 of Lot 2 of the south east v.. of the southeast ';" of
section 21. township 89 north. range 2 east of the 5Ih pm. in the City of Dubuque. Iowa.
according to the recorded Plats thereof.
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Together with all the Seller's rights, title and interest in all fixtures, buildings and improvements
located on the above-described real estate, free and clear of all liens, encumbrances, reservations,
exceptions and modifications. The entirety of the above-described interests being conveyed shall
hereinafter be referred to as the "Property". The Property shall be conveyed with good, clear,
merchantable title, subject to easements of record for public utilities. For the purpose of this
document, said fixtures include all personal property that integrally belongs to or is part of the
above-described real estate, whether attached or detached, such as light fixtures (including
fluorescence tubes but not mazda bulbs), awnings, storm windows, storm doors, storm sashes,
screens, attached linoleum, plumbing fixtures, water heaters, water softeners, automatic heating
equipment, air conditioning equipment other than window type, door chimes, built-in-items and
electrical service cable, fencing, gates and other attached fixtures, trees, bushes, shrubs and
plants unless specifically exempted.
In consideration of the covenants and obligations contained herein, the parties agree as follows:
1. PURCHASE PRICE
The City offers to purchase all the Seller's right, title and interest in the Property for
$112728.00 subject to Iowa Emergency Management Division approval, payable at Closing,
which sum shall be reduced by any amounts paid by the City or others on behalf of or to the
Seller for the purposes set forth in paragraphs 8A and 8B. The Seller shall receive no other
compensation from the City for the Seller's right, title and interest in the Property.
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2. ABSTRACT AND TITLE
Seller shall promptly deliver to the City for examination an abstract of title for the Property,
continued to a date subsequent to the date of this offer, prepared pursuant to Iowa Code Sections
614.29 through 614.38, Iowa Land Title Association Abstracting Standards, and Iowa Land Title
Examination Standards of the Iowa State Bar Association. The abstract shall begin the
government patent to the Property and show merchantable title in Seller. The cost of the
continuance of an existing abstract shall be paid by the City. In the event that the Seller is unable
.
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13. TAXES
Seller shall pay all of the taxes on the property (real and personal) for the fiscal year (July I -
June 30) of the year of closing, and all unpaid taxes for prior years. If any such taxes cannot be
determined by the date of the closing, such taxes shall be based on the amount of the last
determinable installment, proportionately adjusted by any change on the assessed valuation
attributable to capital improvements and which are determinable on the date of closing. The
Seller agrees and acknowledges that Seller shall be responsible for the entire amount of the real
estate taxes for the current fiscal year, payable in the next fiscal year.
14. SPECIAL ASSESSMENTS
Seller shall pay in full all special assessments on the Property, which have been certified to the
County Treasurer for collection before the Closing Date.
15. TIME IS OF THE ESSENCE
Time is of the essence of this Agreement.
16. LEASES
Seller represents and warrants to the City that there are no leases, tenancies, or other rights of
occupancy for use for any portion of the Property. The foregoing representation and warranty
shall survive Closing Date. Seller shall hold harmless and indemnifY the City for and against
any claims, which may arise or be based upon any alleged leasehold interest, tenancy, or other
right of occupancy or use for any portion for the Property.
17. APPROVAL OF COURT
If the Property is an asset of any estate, trust or guardianship, this document shall be subject to
Court approval prior to payment of Purchase Price, unless declared unnecessary by the City's
legal department. If Court approval is necessary, the appropriate fiduciary shall proceed
promptly and diligently to bring the matter on for hearing to enable the issuance of a Court
Officer's Deed.
18. ENVIRONMENTAL MATTERS
The Seller hereby represents and warrants to the City that:
A. Environmental Representations and Warranties
(I) There are no abandoned wells, agricultural drainage wells, solid waste disposal sites or
underground storage tanks (as defined in Iowa Code Chapter 455 B) located in, on or
about the Property.
(2) There is and has been no hazardous waste stored, generated, treated, transported,
installed, dumped, handled, or placed in, on or about the Property.
(3) At no time has any Federal or State hazardous waste clean-up funds been expended with
respect to any part of the Property.
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(4) There has never been any solid waste disposal site or underground storage tank located
in, on or about the Property, nor has there been any releases from an underground
storage tank on real property contiguous to the Property which as resulted in any
hazardous substance coming in contact with the Property.
(5) The Seller has not received any directive, citation, notice, letter or other communication,
whether written or oral, from the Environmental Protection Agency, the Iowa
Department of Natural Resources, any other governmental agency with authority under
any Environmental Laws, or any other person or entity regarding the release, disposal,
discharge, or presence of any hazardous waste on the Property, or any violation of any
Environmental Laws.
(6) To the best of the Seller's knowledge, neither the Property, nor the real property
contiguous to the Property, nor the predecessors in title to the Property, are in violation
of or subject to any existing, pending or threatened investigation or inquiry by any
governmental authority or to any removal or remedial obligations under any
Environmental Laws.
.
The foregoing representations are warranties, and the Environmental Indemnifications set
forth in the following subparagraph B, shall survive the Closing. In addition, the foregoing
representations and warranties and the indemnification provisions in the Offer to Buy shall
not be affected by any study, investigation, or inspection of the Property by the City or the
City's agents.
B. Environmental Indemnification
The Seller agrees to indemnify and hold harmless the City from and against any and all
claims, demands, fines, penalties, causes for action, losses, damage, liabilities, expenses, and
costs (including court costs and reasonable attorney's fees - which may include the value of
services provided by the City's legal department - incurred by the City to enforce this
provision), asserted against or incurred by the City by reason of or arising out of the breach
of any representation or warranty of the Seller set forth above.
C. Additional Environmental Provisions
The Seller shall not store, generate, treat, transport, install, dump, handle, or place in, on or
about any portion of the Property any hazardous waste or hazardous substance. If the Seller
receives any notice from any governmental authority or any other party regarding the release
or presence of any hazardous waste or hazardous substance on any portion of the Property,
the Seller shall immediately notify the City of such fact. In addition, the City or its agents
shall have the right to enter upon the Property at any time to perform additional
environmental studies. If at any time the City in its sole and irrevocable discretion
determines that hazardous waste or hazardous substances are present on any portion of the
Property, the City may terminate this Offer to Buy effective immediately.
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19. CONTRACT BINDING ON SIJCESSORS IN INTEREST
The document shall apply to and bind the heirs, executors, administrators, partners, assigns and
successors in interest of the respective parties.
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20. INTENTION OF USE OF WORDS AND PHRASES
Words and phrases contained herein, including the acknowledgement clause, shall be construed
as in the singular and plural number, and as masculine, feminine or neuter gender, according to
the context.
21. VOI,UNTARY ACOUISITION
The Seller, as owner of the damaged Property as a result of flooding, acknowledges that the City
has presented this Offer for the Property pursuant to the City's Voluntary Acquisition Program.
The Seller's acceptance of this Offer is a voluntary acquisition. The Seller is under no duress or
coercive action by the City to accept this Offer and the City will not pursue acquisition of the
Property by eminent domain or other means if the Seller declines to accept this Offer. The Seller
further acknowledges that if it accepts this Offer, it will be necessary to move permanently from
the Property.
22. REPRESENTATION AND CLOSING AGENT
By signing, the Seller acknowledges that the law firm of William Blum represents the City, and
will serve as the closing agent for the City. The Seller further acknowledges that this law firm
represents only the interests of the Buyer and that the Seller is free to retain counsel of the
Seller's choice.
23. FINAl, AUTHORIZATION
The Seller acknowledges that the preliminary budget for the Offer to Buy was approved by the
Dubuque City Council on July 6, 1999 and Final Authorization from the City is required before
this Offer is binding on either party.
24. OFFER
This Offer shall become null and void unless accepted by the Seller on or before Au~ust 22.
2000.
This Offer is presented in person to the Seller on this ~ day of Au~st, 2000.
The foregoing Offer is accepted,by the undersigned Seller this 1~ay of /J/?? It.f- , 2000.
Cindy Gilligan
horization was approved and authorized by the Dubuque City Council on the ./'/a4
,2000.
Terrance M. Duggan, Mayor
Mark A. Schneider
Authorized Representative
Darwin J. Polk
Notary Public
Jeanne F. Schnel der, city ClerK
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CITY OF DUBUQUE, IOWA
MEMORANDUM
August 1 7, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Home at 3425 Pennsylvania Avenue
The City has been pursuing a grant to purchase a single-family home at 3425
Pennsylvania Avenue. The property has been flooded on several occasions because
of its low elevation in relation to the upper branch of Catfish Creek.
The City has received a grant from the Federal Emergency Management Agency
(FEMA) and Public Works Director Mike Koch is recommending purchase of the
home.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/dd
Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Mike Koch, Public Works Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
August 16, 2000
TO: Michael C. Van Milligen, City Manager
Michael A. Koch, Public Works Director 'llIJ jJ
FROM:
SUBJECT: Purchase of Home at 3425 Pennsylvania Avenue
INTRODUCTION
The single-family home at 3425 Pennsylvania Avenue is located immediately west of
John F. Kennedy Road adjacent to an upper branch of Catfish Creek. The property,
because of its low elevation in relation to the creek has resulted in several occurrences
over the past years where the home has been flooded.
DISCUSSION
After the heavy rains of May, 1998, the property was flooded again, along with many
other properties throughout the City. The City was declared a disaster area, and
Federal Emergency Management Agency (FEMA) funds became available to the City
to repair damage to the public infrastructure. In addition, funds were made available
to cities to mitigate future flood damage.
Because of the history of flooding of this particular home, FEMA authorized the City
to purchase the property utilizing FEMA mitigation funds. Enclosed is a Voluntary
Acquisition Agreement and an Offer to Buy Real Estate for the property at 3425
Pennsylvania Avenue, legally described as East 80 Feet of the West 130 Feet of Lot
2 of Lot 2 of the Southeast 1/4 of the Southeast 1/4 of Section 21, Township 89
North, Range 2 East of 5th P.M. in the City of Dubuque, Iowa, according to the
recorded plats thereof.
The property has been appraised and negotiations have concluded between FEMA and
the owner of the property, Ms. Cindy Gilligan, for the sum of $112,728.00, payable
at the time of closing.
Once the property has been acquired by the City. FEMA will reimburse the City
$102,216 and the State of Iowa $7,224. The local share of $3,288 will be paid for
by the property owner. The City will initiate efforts to either demolish the structure,
or to sell the building for moving to an alternate location outside a flood plain.
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RECOMMENDATION
I would recommend that the City acquire the property at 3425 Pennsylvania Avenue,
known as the on the East 80 Feet of the West 130 Feet of Lot 2 of Lot 2 of the
Southeast 1/4 of the Southeast 1/4 of Section 21, Township 89 North, Range 2 East
of 5th P.M. in the City of Dubuque, Iowa. I would further recommend the adoption
of the enclosed resolution authorizing the Mayor to execute the Voluntary Acquisition
Agreement and to Offer Buy Real Estate which is attached hereto.
MAK/vjd
cc: Pauline Joyce, Administrative Services Manager
Robert Schiesl, Civil Engineer