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Bee Branch Creek_Purchase of 2410 Washington StreetMasterpiece on the Mississippi Dubuque kitiall AO- AmedcaCity IIIIIr 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Restoration Project, Acquisition of 2410 Washington Street (CIP #7201654) DATE: November 1, 2011 City Engineer Gus Psihoyos recommends City Council approval to purchase a 4 -plex rental property owned by Kim McDermott at 2410 Washington Street for $119,000. This purchase is part of the acquisition program associated with the Bee Branch Creek Restoration Project. An appraisal of 2410 Washington Street was completed by Adams Appraisal Services, asserting that the value of the property is $113,500. A review appraisal was performed, concluding that the Adams' appraisal meets appraisal standards. Ms. McDermott took it upon herself to have Mr. Bob Felderman of Felderman Appraisals review the appraisal as well. Mr. Felderman concluded that as a 4 -plex rental unit the "income appraisal approach," which reflected a property value of $119,000 in the Adams' appraisal, should have been given more weight. The review appraiser has looked into the matter concluding that "it would be difficult to show in court that the two approaches are less than equal." Therefore, in order to avoid the costs and time associated with acquiring the property through eminent domain proceedings, and recognizing that there is a real possibility that a condemnation committee would recognize the value of the property as $119,000, City Engineer Gus Psihoyos recommends that the City purchase 2410 Washington Street for $119,000.00. 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 Gus Psihoyos, City Engineer 2 Masterpiece on the Mississippi Dubuque AN- Ameica City 2007 TO: Michael Van Milligen, City Manage FROM: Gus Psihoyos, City Engineer SUBJECT: Bee Branch Restoration Project, Acquisition of 2410 Washington Street (CIP 7201654) DATE: October 31, 2011 INTRODUCTION The purpose of this memorandum is to request City Council approval to purchase property required for the Bee Branch Creek Restoration Project at 2410 Washington Street owned by Kim McDermott. BACKGROUND In December of 2001, the City Council formally adopted the Drainage Basin Master Plan (DBMP) prepared by HDR Engineering (Omaha, Nebraska). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. In December of 2004, the City Council established the alignment for the Bee Branch Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington Streets, and established a building permit moratorium for the properties impacted based on the alignment. On June 2, 2011, the City Council approved the acquisition of additional property for the Bee Branch Creek Restoration Project to create a safe, compelling connection between Comiskey Park and the Bee Branch linear park. DISCUSSION An appraisal of 2410 Washington Street was completed by Adams Appraisal Services, asserting that the value of the property is $113,500.00. A review appraisal was performed, concluding that the Adams' appraisal meets appraisal standards. Ms. McDermott took it upon herself to have Mr. Bob Felderman of Felderman Appraisals review the appraisal as well. Mr. Felderman concluded that as a 4 -plex rental unit the "income appraisal approach," which reflected a property value of $119,000.00 in the Adams' appraisal, should have been given more weight. The review appraiser has looked into the matter concluding that "it would be difficult to show in court that the two approaches are less than equal." Therefore, in order to avoid the costs and time associated with acquiring the property through eminent domain proceedings, and recognizing that there is a real possibility that a condemnation committee would recognize the value of the property as $119,000.00, recommend that the City purchase 2410 Washington Street for $119,000.00. RECOMMENDATION I recommend that the City purchase 2410 Washington Street for $119,000.00. BUDGET IMPACT The purchase price is within the budget for the property. It will be funded from the FY2009 appropriation of $3,902,395 for property acquisitions for the Bee Branch Creek Restoration Project (CIP 7201654). ACTION TO BE TAKEN I respectfully request adoption of the attached resolution authorizing the purchase of the property owned by Kim McDermott at 2410 Washington Street legally described as the South 44' of Lot Twenty Three (23) of 0 S Langworthys Subdivision, in the City of Dubuque, Iowa, according to the recorded Plat of said subdivision, County of Dubuque, State of Iowa. Prepared by Deron Muehring, Civil Engineer ll cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Deron Muehring, Civil Engineer 2 RESOLUTION NO. 359 -11 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY KIM MCDERMOTT IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain properties located in the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 "Drainage Basin Master Plan;" and Whereas, a purchase agreement has been finalized with the owner of the property scheduled for acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby approves the acquisition of the following legally described property: Southwesterly 44' of Lot Twenty Three (23) of 0 S Langworthys Subdivision, in the City of Dubuque, Iowa, according to the recorded Plat of said subdivision, County of Dubuque, State of Iowa At the cost of One Hundred Nineteen Thousand and 00/100 Dollars ($119,000.00). ;{ Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 4. That the City Clerk be and is hereby directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. Attest: Passed, approved and adopted this 7th day of 1â–ºvember , 2011. irnstahl, ity Clerk Roy D. Buol, Mayor Exhibit A Bee Branch Creek Restoration Project Property Acquisition Address: 2410 Washington Street Legal Description: Southwesterly 44' of Lot Twenty Three (23) of 0 S Langworthys Subdivision, in the City of Dubuque, Iowa, according to the recorded Plat of said subdivision, County of Dubuque, State of Iowa