Post office - Federal Bldg. 350 W. 6th, City Interest
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MEMORANDUM
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March 2, 2005
TO:
The Honorable Mayor and City Council Members
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FROM:
Michael C. Van Milligen, City Manager
SUBJECT: City Interest in Disposition of the Federal Building/350 W. 6th Street
The City has received official notice from the General Services Administration (GSA) of
its intent to dispose of the Federal Building. A notice of the City's intent must be filed
with the GSA by March 18, 2005. The City's expression of interest in the Federal
Building at this time would not be binding. It would allow the City time to explore
possible options for the reuse of the building during a formal application process. This
City has already initiated discussions with Dubuque Initiatives about possible
partnership options.
Acting Economic Development Director Pam Myhre requests City Council approval of
correspondence with the GSA expressing the City's interest in pursuing acquisition of
the Federal Building at 350 W. 6th Street for public purposes.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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MichAel C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Pamela Myhre, Acting Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 2, 2005
TO:
FROM:
Michael Van Milligen, City Manager, ~ J
,~/~
Pamela Myhre, Acting Economrevelopment Dir tor
City Interest in Disposition of the Federal Building/350 W. 6th Street
SUBJECT:
Introduction
This memorandum asks City Council approval of correspondence with the General
Services Administration (GSA) expressing the City's interest in pursuing acquisition of
the Federal Building at 350 W. 6th Street for public purposes.
Background
The City has received official notice from the GSA of its intent to dispose of the Federal
Building. The notice provides instructions and a time limit for interested public bodies
and eligible nonprofit organizations to apply for the property. A notice of intent must be
filed with the GSA by March 18, 2005.
The City's expression of interest in the Federal Building at this time would not be
binding. It would allow the City time to explore possible purchase and reuse options for
the building during a formal application process. The City has already initiated
discussions with Dubuque Initiatives about possible ownership options.
Discussion
The first determination will be whether the property can be acquired for free (public
benefit conveyance) or whether is must be acquired through a negotiated sale at fair
market value. Both the City and Dubuque Initiatives, as a nonprofit organization, qualify
to acquire surplus property. Generally, public reuse of the facility is required in both
conveyance options.
In the case of Historical Monument conveyance (which would likely qualify in the "free"
category), the property "may under certain circumstances be used for revenue
producing activities to support the historic monument." Even if the City were to pay fair
market value for the property, negotiated sales must be for a public purpose. Economic
development activities, however, are considered a public purpose.
The building is in very good condition overall. Estimated costs to renovate the building
range from $700,000 - $2 million. Financing the renovations might be possible through
the use of tax increment financing (would require adding the property to the Greater
Downtown Urban Renewal District), federal tax credits (if Dubuque Initiatives were the
owner/developer), federal earmark, incremental improvements to the building through
individual tenant improvements or through a multi-year Capital Improvement Program
process.
Recommendation
I recommend that the City express its interest in acquiring the Federal Building through
notice thereof to the GSA by the March 18, 2005 deadline. After that, a formal
application will be required, giving the City time to determine final reuse, financing and
ownership strategies.
Action Step
The action step is for the City Council to authorize the City Manager to give written
notice to the GSA of the City of Dubuque's interest in acquiring the Federal Building for
public purpose.
attachment
F:\USERS\Pmyhre\WPDOCS\Dubuque fnitiatives\Fedbuildingdisposition.doc
II
GSA Greater Southwest Region
February 15, 2005
Case No. 7-G-IA-0495-1
NOTICE OF SURPLUS DETERMINATION - GOVERNMENT PROPERTY
Federal Building, U. S. Post Office, and Courthouse
350 W. 6th Street
Dubuque, Dubuque County, Iowa
Notice is hereby given that the following described property has been determined to be
surplus Government property and available for disposal:
Property consists of a 4-story, 80,762 gross square foot masonry building on
approximately 47,526 gross square feet of land.
A map is attached showing the location of the property.
This property is surplus property available for disposal pursuant to 40 USC 541, et seq..
and applicable regulations. The applicable regulations provide that public agencies (non-
Federal) shall be allowed a reasonable period of time to submit a notice of interest in the
surplus real property. Disposal of this property, or portions thereof, may be made to public
agencies for the public uses stated below whenever the Government determines that the
property is available for such use and that disposal thereof is authorized by the statute
cited and applicable regulations. HUD has determined the property suitable for use for
facilities to assist the homeless under the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11411), as amended. Suitability determination was published in the Federal
Register on February 11, 2005.
Statute
Tvpe of DisDosal
Negotiated sale to public bodies for use for public
purposes generally
40 USC 545(b)(8)
40 use 550(d)
40 use 553
40 use 550(c)
40 USC 550(e)
Health purposes
Correctional facilitY use
School, classroom or other educational purpose
Public Park or recreation use
U.S. General Services Administration
819 Taylor Str..t
Fort Worth, TX 76102-6195
www.gsa.gov
40 use 553(b)(2)
LawEm~cementandEmergen~
Management Response Purposes (including
fire and rescue services)
Hist~ical Monument
40 use 55O(h)
If any public agen~ desires to acquire the property under cited statutes, notice thereof in
writing must be filed with General Services Administration, Real Property Disposal Division
(7PR-6), 1500 E. Bannister Road, Kansas eitY, MO 64131, before 9:00 a.m., March 18, 2005.
Such notice shall:
1. Disclose the contemplated use of the property.
2. Contain a citation of the applicable statue(s) under which the public agen~ desires to
procure the property.
3. Disclose the nature of the interest if an interest less than the fee title to the property is
contemplated.
4. Stale the length of time required to develop and submit a f~al application for the
property (where payment to the Government is required under the statute, include a
statement as to whether funds are available and, if not, the period required to obtain
funds); and
5. Give the reason for the time required to develop and submit a formal application.
Any planning for a public health use of the property sought to be acquired subject to a
public benefit allowance must be coordinated with Ms. Heather Ransom, Director,
Department of Health and Human Services, Division of Property Management, Program
Support Center, Room No. 5B-17, Parklawn Building, 5600 Fishers Lane, Rockville, MD
20857, telephone 301-443-2265. An application form to acquire property for public health
and drug rehabilitation purposes and instructions f~ preparation and submission of such
applications may be obtained from that office.
Any planning for a correctional facilitY use or law enforcement purposes of the property
sought to be acquired subject to a public benefit allowance must be coordinated with
Ms. Janet Quist, U. S. Department of Justice, Bureau of Justice Assistance, Special
Programs Division, 810 Seventh Street, N. W., Room 4413, Washington, DC 20531,
telephone 202-616-3214. An application form to acquire the property for a correctional
facility requirement and instructions for preparation and submission of such application
may be obtained from that office.
Any planning for an educational use of the property sought to be acquired subject to a
public benefit allowance must be coordinated with Mr. David Hakola, Director, Real
Property Group, U. S. Department of Education, 400 Maryland Avenue, SW, Room 2C107,
Washington, DC 20202-4553, telephone number 202-401-0506. An application form to
acquire property for an educational requirement and instructions for preparation and
submission of such application may be obtained from that office.
Any planning f~ park or recreational use of the property sought to be acquired subject to a
public benefit allowance must be coordinated with Ms. Elyse LaF~est, N~st Region,
National Park Service, 15 State Street, Boston, MA 02109, telephone 617-223-5190. An
application f~ to acquire property for park or recreational requirement and instructions
for preparation and submission of such application may be obtained from that office.
Any planning to acquire the property for emerge~ management response use sought
through a public benefit allowance must be coordinated with the Federal Emerg~
Management Ag~ (FEMA), Mrs. Cheri Smith, Program Analyst, FEMA AR-FM-SL,
500 C Street, SW, Suite 5050, Washington, DC 20472, telephone 202-646-3383.
An application form to acquire the property f~ historical monument purposes and
instructions f~ preparation and submission of such application may be obtained
from Real Property Disposal Division (7PR-6), General Services Administration,
1500 E. Bannister Rd., Kansas City, MO 64131.
Application forms or instructions to acquire property for all other public use
requirements may be obtained from the Real Property Disposal Division (7PR-6),
General Services Administration, 1500 E. Bannister Rd., Kansas City, MO 64131.
If any public agen~ considers the proposed disposal of the property to be incompatible
with its development plans and programs, notice of such incompatibility must be
forwarded to Real Property Disposal Division (7PR-6), General Services
Administration, 1500 E. Bannister Rd., Kansas City, MO 64131, within the same time
frame prescribed above.
Upon receipt of such written notice, the public agen~ will be promptly informed concerning
the period of time that will be allowed for submission of a formal application. In the
absence of such written notice, or in the event a public use proposal is not approved, the
regulations issued pursuant to the authority contained in 40 USC 541, at seq., and
applicable regulations provide f~ offering the property for competitive public sale.
This building is occupied by Federal Tenants. The tenants will relocate within two
years.
MORE INFORMATION ABOUT THIS PROPERTY MAY BE OBTAINED BY CONTACTING
LAURA MCGINNIS, REALTY OFFICER, REAL PROPERTY DISPOSAL DIVISION (7PR-6) ,
1500 E. BANNISTER RD., KANSAS CITY, MISSOURI, TELEPHONE 816-823-5355.
40 USCS ~ 904
(a) Notice to local govemment. Before offering real property situated in an urban area for
sale, the Administrator of General Services shall give reasonable notice to the unit of
general local govemment exercising zoning and land use jurisdiction in order to provide
an opportunity for zoning so that the property is used in accordance with local
comprehensive planning described in subsection (c).
(b) Notice to prospective purchasers. To the greatest extent practicable, the Administrator
shall fumish to all prospective purchasers of real property situated in an urban area
complete information conceming-
(1) current zoning regulations, prospective zoning requirements, and objectives for
property if it is unzoned; and
(2) (A) the current availability of streets, sidewalks, sewers, water, street lights, and
other service facilities; and
(B) the prospective availability of those service facilities if the property is
included in local comprehensive planning described in subsection (c).
(c) Local comprehensive planning. Local comprehensive planning referred to in
subsections (a) and (b) includes any of the following activities, to the extent the activity is
directly related to the needs of a unit of general local government:
(1) As a guide for government policy and action, preparing general plans related
to-
(A) the pattern and intensity of land use;
(8) the provision of public facilities (including transportation facilities) and other
govemment services; and
(C) the effective development and use of human and natural resources.
(2) Preparing long-range physical and fiscal plans for govemment action.
(3) Programming capital improvements and other major expenditures, based on a
determination of relative urgency, together with definitive financial planning for
expenditures in the earlier years of a program.
(4) Coordinating related plans and activities of state and local govemments and
agencies.
(5) Preparing regulatory and administrative measures to support activities
described in this subsection.