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Approve Purchase of 1716 South Grandview AvenueMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approve Purchase of 1716 South Grandview Avenue DATE: February 16, 2012 Dubuque bierd All-America City 1 2007 Leisure Services Manager Marie Ware is recommending approval of the purchase of the property at 1716 South Grandview Avenue. The assessed value of the property is $154,700, and since it would need some updating and to facilitate a quick sale, the owners are willing to sell it to the City for $120,000. The City was not pursuing this property but was approached by the owners. Acquisition will allow for future improvements to the entry of Murphy Park, as this property abuts the entrance. Funding sources have been identified. 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 Marie Ware, Leisure Services Manager THE CITY OF Dui Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager DATE: February 16, 2012 SUBJECT: Approve Purchase of 1716 South Grandview Avenue Dubuque had All-America City ' 11' 2007 INTRODUCTION The purpose of this memo is to recommend the Offerto Purchase and Acceptance for 1716 South Grandview for additional area at the entry of Murphy Park. BACKGROUND The Bruce Scott family approached me to see our interest as a City in the purchase of the property at 1716 South Grandview. This lot is located adjacent to the east of the entry drive into Murphy Park. The lot is between the entry drive of the park and high power overhead electric lines on its east boundary. Just across Grandview is the off street recreation trail that connects to the Mines of Spain. As a Department we have great interest in acquiring this property. DISCUSSION The opportunity to purchase this lot will allow us to look at improvements to the entry of Murphy Park. Murphy Park is widely used throughout the entire year for numerous community events and fundraisers. There is a very narrow entry to this flagship park in our system. Many of the events hosted in the park involve persons on foot. At this time the purchase is a priority and a plan for the area will come later. The purchase price is $120,000 as is reflected in the Offerto Purchase and Acceptance. This document has been executed by the Scott's. The assessed value of the property is $154,700. I would look to accommodate the opportunity of allowing the house to be moved; however as a part of this request we ask for $10 ,000 deconstruction should that not be possible. The total cost of purchase and opening the lot would be $130,000. 1716 South Grandview purchase $ 120 A00 Deconstruction $ 10 f]00 Total $130,000 I propose the funding of the project in the following way: Savings from Grand River Center Exhibit Hall Carpeting Project: $ 66,000 CIP 1022113 Savings from Grand River Center Painting Project $ 30,000 CIP 1002197 Land sales $ 34.000 $130,000 RECOMMENDATION I fully recommend the purchase of 1716 South Grandview through the resolution and Offer to Purchase and Acceptance. Prepared by: MLW et cc: Jenny Larson, Budget Director Barry Lindahl, City Attorney Maureen Quann, Assistant City Attorney OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Janet C. Scott, Seller: SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: The east 50 feet of lot 2 of lot 15, and, the east 50 feet of lot 2, both in Summer Hill Addition to Dubuque, in the City of Dubuque, Iowa, according to the recoded Plat thereof (the Real Estate) legal description to be confirmed per continued abstract per Section 9, with any easements and appurtenant servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants of record; c. any easements of record for public utilities, roads and highways. SECTION 2. PRICE. The purchase price shall be $120,000.00, payable in cash at the Closing. SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable for fiscal year 2010 -2011 and prior years. Seller shall also pay real estate taxes for fiscal year 2011 -2012 prorated through the date of closing. Buyer shall pay all subsequent real estate taxes after the date of closing. SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments, if any, which are a lien as of the date of closing, prorated to the date of closing. SECTION 5. RISK OF LOSS AND INSURANCE. Sellers shall bear the risk of loss or damage to the Real Estate prior to closing or possession, whichever first occurs. Sellers agree to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyer, provided, however, if there is Toss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Seller, Buyer agrees to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Seller shall not be required to repair or replace same. SECTION 7. POSSESSION. If Buyer timely performs all obligations, possession of the Real Estate shall be delivered to Buyer on March 31, 2012, or such earlier date as the 02152012maq parties may agree in writing, with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 8. FIXTURES. All property that integrally belongs to or is part of the buildings on the Real Estate, whether attached or detached, such as Tight fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, automatic heating equipment, air conditioning equipment, wall to wall carpeting, built -in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale. SECTION 9. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an abstract of title to the Real Estate continued through the date of acceptance of this offer, and deliver it to Buyer-for examination. It shall show merchantable title in Seller in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyer when the purchase price is paid in full. Seller shall pay the costs of any additional abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or its assignees. SECTION 10. DEED. Upon payment of the purchase price, Seller shall convey the Real Estate to Buyer, by Warranty Deed, free and clear of all liens, restrictions, and encumbrances except as provided in 1 a. through 1 c. Any general warranties of title shall extend only to the time of acceptance of this offer, with special warranties as to acts of Seller continuing up to time of delivery of the deed. SECTION 11. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 12. REMEDIES OF THE PARTIES 12.1 If Buyer fails to timely perform this contract, Seller may forfeit it as provided in the Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty days such failure is not corrected) Seller may declare the entire balance immediately due and payable. Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver. 12.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to it. 12.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at law or in equity available to them and shall be entitled to obtain judgment for costs and attorney fees as permitted by law. SECTION 13. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. 2 Dated: February 24, 2012 CITY OF DUBUQUE, IOWA By: Michael C. Vin Milligen City Manager 4 THIS OFFER IS ACCEPTED Dated: % e- 6'. 15-, 7-0(2- By: BRIAN SCOTT Attorney In Fact for Janet C. Scott, Seller Feb 15 12 05:39p Brian Scott 513 - 251 -9399 p.1 OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Janet C. Scott, Seller. SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: The east 50 feet of lot 2 of lot 15, and, the east 50 feet of lot 2, both in Summer Hill Addition to Dubuque, in the City of Dubuque, Iowa, according to the recoded Plat thereof (the Real Estate) legal description to be confirmed per continued abstract per Section 9, with any easements and appurtenant servient estates, but subject to the following: a. any zoning and other ordinances; b. any covenants of record; c. any easements of record for public utilities, roads and highways. SECTION 2. PRICE. The purchase price shall be $120,000.00, payable in cash at the Closing. SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable for fiscal year 2010-2011 and prior years. Seller shall also pay real estate taxes for fiscal year 2011 -2012 prorated through the date of dosing. Buyer shall pay all subsequent real estate taxes after the date of closing. SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments, if any, which are a lien as of the date of closing, prorated to the date of closing. SECTION 5. RISK OF LOSS AND INSURANCE. Sellers shall bear the risk of loss or damage to the Real Estate prior to closing or possession, whichever first occurs. Sellers agree to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyer, provided, however, if there is loss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Seller, Buyer agrees to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Seller shall not be required to repair or replace same. SECTION 7. POSSESSION. If Buyer timely performs all obligations, possession of the Real Estate shall be delivered to Buyer on March 31, 2012, or such earlier date as the 02152012maq Feb 15 12 05:40p Brian Scott 513- 251 -9399 p.2 parties may agree in writing, with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 8. FIXTURES. All property that integrally belongs to or is part of the buildings on the R I Estate, whether attached or detached, such as light fixtures, shades, rods, blinds, aw ings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, utomatic heating equipment, air conditioning equipment, wall to wall carpeting, built -in ite s and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale. SECTION 9. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an abstract of title to the Real Estate continued through the date of acceptance of this offer, and deliver it to Buyer for examination. It shall show merchantable title in Seller in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the Buyer when the purchase price is paid in full. Seller shall pay the costs of any additional abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or its assignees. SECTION 10. DEED. Upon payment of the purchase price, Seller shall convey the Real Estate to Buyer, by Warranty Deed, free and clear of all liens, restrictions, and encumbr nces except as provided in 1 a. through 1 c. Any general warranties of title shall extend only to the time of acceptance of this offer, with special warranties as to acts of Seller continuing up to time of delivery of the deed. SECTION 11. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 12. REMEDIES OF THE PARTIES 12.1 if Buyer fails to timely perform this contract, Seller may forfeit it as provided in the Iowa Cod , and all payments made shall be forfeited or, at Seller's option, upon thirty days written n ice of intention to accelerate the payment of the entire balance because of such failure (d ring which thirty days such failure is not corrected) Seller may declare the entire balance i mediately due and payable. Thereafter this contract may be foreclosed in equity and the ourt may appoint a receiver. 12.2 If eller fails to timely perform this contract, Buyer has the right to have all payments made retumed to it. 12.3 Byer and Seller also are entitled to utilize any and all other remedies or actions at law or in equity available to them and shall be entitled to obtain judgment for costs and attorney fees as permitted by law. SECTIOtJ 13. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall app to and bind the successors in interest of the parties. 2 Feb 15 12 05:40p Brian Scott 513 -251 -9399 p.3 SECTION 14. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. SECTION 15. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before February 20, 2012 it shall become void and all payments shall be repaid to the Buyer. SECTION 16, OTHER PROVISIONS_ 16.1 The Offer is subject to final approval of the City Council of the City of Dubuque, Iowa in its sole discretion at its February 20, 2012 meeting unless otherwise agreed to in writing by the parties. If the City Council of the City of Dubuque, Iowa does not approve this Offer at its February 20, 2012 meeting it shall become automatically void and neither party shall be bound by the terms and conditions set forth herein. 16.2 After execution of this Offer by Seller and Buyer and final approval of the City Council of the City of Dubuque, Iowa, Buyer shall deliver a copy of the executed Offer to Buy Real Estate and Acceptance executed by Michael C. Van Milligen, City Manager, along with a copy of the Resolution of the City Council authorizing the purchase of this Real Estate. 16.3 Buyer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Real Estate and all parts thereof, upon reasonable notice to Seller for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, provided that Buyer shall hold Seller harmless and fully indemnify Seller against any damage, claim, liability or cause of action arising from or caused by the actions of Buyer, its agents, or representatives upon the Real Estate or the Donated Real Estate (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Real Estate), and shall have the further right to make such inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as Buyer considers appropriate. 16.4 Seller warrants that the rights of all tenants shall be terminated by Seller prior to closing and that there will be no tenants whose rights in the Real Estate survive the closing. This covenant shall survive the closing. 16.5 Until ten (10) days prior to closing, Buyer shall have the right to terminate this agreement if environmental issues exist on the Real Estate that Buyer determines in its sole discretion do not permit Buyer to use the Real Estate for its intended use. Prior to terminating this Agreement pursuant to this section, Buyer shall offer Seller the opportunity to remediate the Real Estate to the satisfaction of Buyer in its sole discretion and at Seller's sole cost. 16.6 The Real Estate is soldlpurchased "as is" and "with all faults ". 3 Feb 15 12 05:40p Brian Scott 513 - 251 -9399 p.4 THIS OFFER ISr _ACCEPTED Dated: Dated: 1— ' • { > ZU r CITY OF DUBUQUE, IOWA By: By: Michael C. Van Milligan City Manager 4 BRIAN SCOTT Attorney In Fact for Janet C. Scott, Seller 10 6276010 1036276011 10 6255004 D2030 ROWAN'S SUB 1036276015 MAI+ _Ay STP! P 10 6255002 .JMMER HILL ADD. 6276021 1036276023 103627.022 1036276024 1036276025 1036276016 1036276019 1036276018 1036276026 0362760. effiwalocaziam 1036426009 1036426012 *Notice - These maps are compiled for assessment and tax information purposes from official county records. All map information shown is for the forgoing purpose and does not represent a survey of land. Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583 -4113 Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583 -4113 RESOLUTION NO. 57 -12 APPROVING THE PURCHASE OF REAL ESTATE FROM JANET C. SCOTT Whereas, Janet C. Scott is the owner of the following real property (the Property); The east 50 feet of lot 2 of lot 15, and, the east 50 feet of lot 2, both in Summer Hill Addition to Dubuque, in the City of Dubuque, Iowa, according to the recorded Plat thereof (1716 South Grandview) ;and Whereas, the City Manager has tentatively agreed to purchase the Property from Janet C. Scott, subject to the approval of an Offer to Buy Real Estate and Acceptance between City and Janet C. Scott by the City Council and Whereas, the City Council has determined that it would be in the best interests of the City to approve the purchase of the Property from Janet C. Scott. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council hereby approves the Offer to Buy and Acceptance attached hereto. Section 2. The City Manager and City Attorney are authorized to take such further action as is required to complete the purchase of the Property. Passed, approved and adopted this 20th day of February, 2012. Attest: Kevin •. Firnstahl, City Clerk Roy Buol, Mayor