Mines of Spain_REAP Grant Agreement for Property AcquisitionMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: REAP Grant Agreement for Mines of Spain Land Acquisition
DATE: November 14, 2011
Dubuque
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AU- AmedcaCity
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2007
Planning Services Manager Laura Carstens recommends City Council approval of the
Resource Enhancement and Protection (REAP) grant agreement with the Iowa
Department of Natural Resources for $200,000 in funds to be used toward acquisition of
52.19 acres adjacent to the E.B. Lyons Interpretive Center and the Mines of Spain State
Recreation Area.
The City has entered into a purchase agreement with the Iowa Natural Heritage
Foundation to acquire this land at a cost of $312,000. Cost estimates are being
finalized for removal of the farmstead, barns and other structures, and capping the well
on site. There will be a future amendment to the original agreement to add these and
some carrying costs. The City will apply for additional grants to cover the acquisition
costs, plus whatever the Friends of the Mines of Spain and the Iowa Department of
Natural Resources would contribute.
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, City Attorney
Cindy Steinhauser, Assistant City Manager
Laura Carstens, Planning Services Manager
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Laura Carstens, Planning Services Manager j
SUBJECT: REAP Grant Agreement for Mines of Spain Land Acquisition
DATE: November 14, 2011
Dubuque
All- anercacny
111111
2007
Introduction
This memo transmits a resolution (Att. 1) and an agreement (Att. 2) with the Iowa
Department of Natural Resources (IDNR) for $200,000 in FY 2012 REAP (Resource
Enhancement and Protection) Program grant funds for land acquisition of 52.19 acres
(Bottoms property) adjacent to the E.B. Lyons Interpretive Center and the Mines of
Spain State Recreation Area.
Discussion
The City is partnering with the IDNR, the Friends of the Mines of Spain, and the Iowa
Natural Heritage Foundation on acquisition of this land. The City has entered into a
purchase agreement with the Foundation for acquisition of the land, at a cost of
$312,000. Cost estimates are being finalized for removal of the farmstead, barns and
other structures and capping the well on site.
The City will apply for additional grants to cover the acquisition costs, plus whatever the
Friends of the Mines of Spain and the IDNR would contribute, to acquire the property,
but not to exceed the actual cost to the Foundation to acquire the land.
Recommendation
recommend that the City Council adopt the attached resolution approving the REAP
grant agreement with the IDNR for Mines of Spain land acquisition (Bottoms property).
Attachments
cc: Marie Ware, Leisure Services Manager
Jenny Larson, Budget Director
F: \USERS \LCARSTEN \WP \COUNCIL \REAP Grant Agreement MOS Land Acquisition \Memo MVM REAP Grant Agreement MOS
Land Acquisition.doc
1
Prepared by: Laura Carstens, City Planner Address: City Hall, 50 W. 13th St, Dubuque, IA 52001 Telephone: 589 -4210
Return to: Jeanne Schneider, City Clerk Address: Citv Hall, 50 W. 13th St. Dubuque, IA 52001 Telephone: 589 -4121
RESOLUTION NO. 380-11
RESOLUTION AUTHORIZING REAP GRANT AGREEMENT WITH IOWA
DEPARTMENT OF NATURAL RESOURCES FOR LAND ACQUISITION FOR E.B.
LYONS INTERPRETIVE CENTER AND MINES OF SPAIN
Whereas, the Iowa Department of Natural Resources has allocated $200,000 in FY 2012
REAP (Resource Enhancement and Protection) Program grant funds for land acquisition of
52.19 acres (Bottoms Property) adjacent to the E.B. Lyons Interpretive Center and Mines of
Spain; and
Whereas, the City of Dubuque has entered into a purchase agreement with the Iowa
Natural Heritage Foundation for acquisition of said 52.19 acres (Bottoms Property) adjacent to
the E.B. Lyons Interpretive Center and Mines of Spain.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The Mayor hereby is authorized to sign and the Planning Services Manager is
hereby authorized to submit the REAP grant agreement with the Iowa Department of Natural
Resources for $200,000 in REAP grant funds for land acquisition of 52.19 acres (Bottoms
Property) adjacent to the E.B. Lyons Interpretive Center and Mines of Spain.
Section 2. The City Council hereby provides its written assurance that the completed
project will be adequately maintained for its intended use in accordance with state requirements.
Attest:
Passed, approved and adopted this 21xt day of November
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Kevin : Firnstahl, ity C7r
F: \USERS \LCARSTEN \WP \COUNCIL \REAP Grant Agreement MOS Land Acquisition \FY12 REAP Grant Agreement - Resolution
land acquisition.doc
2011.
Roy D. ' uol, Mayor
Fields of Opportunities
STATE O F I O WA
TERRY E. BRANSTAD, GOVERNOR
KIM REYNOLDS, LT. GOVERNOR
October 31, 2011
CITY OF DUBUQUE
LAURA CARSTENS
50 W. 13TH STREET
DUBUQUE, IA 52001
DEPARTMENT OF NATURAL RESOURCES
ROGER L. LANDE, DIRECTOR
Re: REAP Grant # 12- R4 -XR, E.B. LYONS INTERPRETIVE CNTR LAND ADDITION -
BOTTOMS PROPERTY
Dear LAURA CARSTENS:
Congratulations! Enclosed please find two copies of a grant agreement, and one set of
attachments for your Resource Enhancement and Protection (REAP) grant awarded by the
Department of Natural Resources (DNR). Please carefully review the grant agreement and
attachments. You must sign both copies of the agreement, return them to my attention and a
fully executed copy will be returned to you.
If you have not already done so, please submit your appraisal(s), to my attention, for review and
approval. State Appraisal Guidelines are available on the DNR's internet site on the following
page: http:// www. iowadnr. gov/ lnsideDNR /AboutDNR/RealtyServices.aspx.
Please start a folder .to place all grant and expense docuunention in. State rules and regulations
included with the application and pertaining to the REAP program effectively become part of the
grant agreement.
If you have any questions, please contact me at 515 -281 -3013.
Sincerely,
7/414,-. Th(9-bt-t
Kathleen Moench
Budget and Finance Bureau
Enclosures
WALLACE STATE OFFICE BUILDING / 502 EAST 9th STREET / DES MOINES, IOWA 50319
515- 281 -5918 FAX 515- 281 -6794 www.iowadnr.gov
DEPARTMENT OF NATURAL RESOURCES
RESOURCE ENHANCEMENT AND PROTECTION FUND
GRANT AGREEMENT - ACQUISITION
GRANTEE:
PROJECr TITLE:
CONTACT PERSON:
GRANT AWARD:
DNR CONTACT/PHONE #:
REAP Grant It 12 -R4 -XR
CITY OF DUBUQUE
E.B. LYONS INTERPRETIVE CNTR LAND
ADDITION - BOTTOMS PROPERTY
LAURA. CARSTENS 563 -58 -4210
$200000.00
Kathleen Moench
5.15 -281 -3013
1. PURPOSE. The purpose of this REAP Acquisition Grant Agreement is to enable the Iowa
Department of Natural Resources (DNR), acting for the State of Iowa, to assist the CITY OF
DUBUQUE (Grantee) in the acquisition of land for the enhancement and protection of open
space areas.
2. PARTIES /AUTHORITY. The parties to this Grant Agreement are the DNR, an agency of the
State of Iowa, and the CITY OF DUBUQUE. The parties make this Grant Agreement pursuant
to 1989 Iowa Code Supplement Section 455A.19(1)(a), which authorizes the Natural Resource
Cornmission to spend certain state funds appropriated for projects to enhance and protect open
spaces.
3. GENERAL DESCRIPTION OF PROJECT LANDS. THIS GRANT AGREEMENT IS FOR YOUR
PROJECT described as:
ACQUISITION OF 52 ACRES OF LAND AS AN ADDITION TO THE E.B.
LYONS INTERPRETIVE CENTER, LOCATED ADJACENT TO THE CENTER
AND TO THE MINES OF SPAIN, CITY OF DUBUQUE, DUBUQUE COUNTY,
IOWA.
4. GRANT AWARD 'AND REIMBURSEMENTS. The DNR will provide 100 percent of the
acquisition costs up to a maximum amount of $200000.00.
A. Appraisals must be sent to the Department for review and approval, follow the DNR
appraisal guidelines, which can be found at;
lrttp:// www. iowadnr. gov/ InsideDNR /AboutDNR /RealtyServices.aspx, and include a
groundwater bazard statement. Submit the appraisal(s) and groundwater hazard
statement(s) as soon as possible to:
B.
REAP Grant Coordinator, Budget & Finance Bureau
Iowa Department of Natural Resources
502 East 9 ") Street
Des Moines, Iowa 50319
Upon receiving written approval of the appraisal(s), 100 percent advance reimbursement
of the grant award may be requested by submitting a letter of request and the following
documents:
• title opinion showing title is clear and marketable;
• offer to buy.
REAP Grant #: 12 -R4 -XR
C. The following documents are required upon completion of the grant:
• a legal description of the property for the Notice of Use Restriction;
• copy of the recorded deed naming the grantee as owner;
• copy of the recorded groundwater hazard statement(s);
• copies of billings and canceled checks for the acquisition;
• final report, to include a description of the completed project, pictures of the
project, and efforts made to procure goods and services from Targeted Small
Businesses (TSBs).
5. ACQUISITION COSTS EXPLAINED. Acquisition costs include the lesser of the cost or value of
the project lands and the lesser of the cost or value of acquisition services as follows:
A. Cost/Value of Project Lands. Acquisition costs include the lesser of the purchase price
paid for the project lands by the grantee, or their fair market value established by an
appraisal approved by the DNR.
B. Cost/Value of Acquisition Services. Acquisition costs also include the lesser of the price
paid by the grantee for acquisition services, or the fair market value of such services
based on a written valuation approved by the DNR. Acquisition services include
appraisals, surveys, abstracting, and other miscellaneous services reasonably required for
acquisition of the project lands.
C. Notwithstanding subparagraphs 5a and 5b, the DNR will not cost -share more than the
appraised fair market value of any part of the project lands, and will not cost -share more
than the substantiated fair market value of any acquisition services.
6. RESPONSIBILITIES. The grantee is solely responsible for closing the acquisition transaction,
recording the transaction and Notice of Use Restriction with the appropriate county recorder.
The grantee will make a concerted effort to procure goods and services from Targeted Small
Businesses (TSBs) during the performance of this Grant Agreement. The DNR may provide
assistance at the request of the grantee, or at the Director's recommendation.
7. WRITTEN WAIVERS. The grantee may choose at its own risk to acquire title to portions of the
project lands if necessary to avoid expiration of an offer to sell or to facilitate fund raising, after
obtaining a written waiver of retroactivity from the department.
8. AMENDMENTS. This Grant Agreement may be amended only by written ADDENDA signed
and dated by the DNR Director or DNR REAP coordinator. Requests for amendments shall be
directed to the DNR REAP coordinator.
9. EFFECTIVE DATE/TERMINATION. This Grant Agreement shall become effective when it has
been signed and dated by the DNR Director and the grantee. All work specified in the project
proposal will be completed by DECEMBER 31, 2013.
10. AVAILABILITY OF FUNDS. If funds anticipated for the continued fulfillment of this agreement
are at any time not forthcoming or insufficient, either through the failure of the State of lowa to
appropriate funds, or discontinuance or material alteration of the program under which funds
were provided, then the Department shall have the right to terminate the agreement without
penalty.
REAP Grant #: 12 -R4 -XR
11. By signing this Grant Agreement, the grantee agrees to the terms and conditions set forth in this
agreement and all attachments listed below:
• the REAP "General Provisions" (State rules included with application form);
• the appraisal guidelines;
Date
Chuck Gipp, Deputy Director
owa Department of Natural Resources
Grariee Signature, Mayor or County Board Director
Roy D. Buol, Mayor
Print Name, Mayor or County Board Director
Fields of Opportunities
STATE OF IOWA
TERRY E. BRANSTAD, GOVERNOR
KIM REYNOLDS, LT. GOVERNOR
November 7, 2011
Ms. Laura Carstens, Planning Services Manager
City of Dubuque
50 West 13th St.
Dubuque, IA 52001
Dear Ms. Carstens:
DEPARTMENT OF NATURAL RESOURCES
R4.Ga.EEt Lti L.ANDE ,DIRECTOR
NOV 1 0 2011
P1LANIV ; ,�`
You have requested an appraisal review of an appraisal report submitted by Mr. Mark Tressel, Associate
and an Iowa Associate General Real Property Appraiser (AG #03107) and Mr. Tom Kane, an Iowa
Certified General Real Property Appraiser (CG #01594) and President of Kane Appraisal Services, in
Dubuque, Iowa.
The subject property appraised, owned by Laverne & Mary Jane Bottoms Trust and consisting of 52.19+/ -
acres of semi - improved land (majority of which is cropland and timber) located at 9097 Bellevue Heights
Road in Dubuque County abutting the Dubuque City limits, was appraised for the City of Dubuque. The
purpose of the appraisal report was to determine the market value of the fee simple interest in the property
as of the date of inspection, July 27, 2011. The intended use of the appraisal report was to serve as a basis
for market value with respect to a potential purchase of the subject property (and as support for a REAP
grant application). A copy of this appraisal report was forwarded for use in your REAP grant application
process (REAP -# 12- R4-XR).
On November 2, 2011, DNR review appraiser Steve Salsberry reviewed and approved the appraisal
report, which estimated the market value in the fee simple interest in the above - described property, as of
July 27, 2011, in the amount of $548,000 ($10,500 per Acre).
Please contact Kathleen Moench for the completion of your REAP grant application.
Sincerely, %
L �% f
Roger L. Lande
Director, Iowa DNR
Bottoms Trust/City of Dubuque.itr.sts
502 EAST 9th STREET / DES MOINES, IOWA 50319 -0034
PHONE 515 - 281 -5918 FAX 515- 281 -6794 www.iowadnr.gov