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Bitter Letter re: Bergfeld farm rezoning Page 1 of2 Jeanne Schneider From: Sent: To: Tabitter@aol.com Thursday, June 02,20051:43 PM rbuoI1@mchsi.com; amichalski@cityofdubuque.org; dnicholson@cityofdubuque.org; jmarkham@cornerenergy.com; jconnors63@mchsi.com; pcline@cityofdubuque.org; jschneid@cityofdubuque.org; ctymgr@cityofdubuque.org Subject: Bergfeld farm rezoning -12-20-04 Council meeting To Mr. Duggan, Mr. Van Milligan, Ms. Michalski, Ms. Connors, Ms. Cline, Mr. Buol, Mr. Markham, and Mr. Nicholson: At the December 20, 2004, meeting of the Dubuque City Council, the rezoning of the Bergfeld farm and the expansion of the Dubuque Industrial Center West was heard. I appeared on behalf of, and along with, Allen Lex, Lloyd Steffen, and Elaine White. Allen Lex and his wife live at 14512 Middle Road, their home for the past 38 years. Lloyd Steffen and his wife live at 14480 Middle Road, her home for the past 11 years. Elaine White lives at 14454 Middle Road, her home for the past 21 years. Each of them addressed the Council at the December 20th meeting, as did Mr. Lex's son. As a whole, you were very supportive of their position, and specific concerns were raised about the value of their respective properties. However, there was a $1,000,000 grant available, and it was contingent upon the rezoning. Therefore, the rezoning passed. My clients will have heavy industrial property right up to their back yards. The area will be graded, creating a 30-foot sharp drop from my clients' property down to the new industrial park. They will be forced to hook up to City sewer and water - at their own expense - and their property taxes will increase. It is inevitable that Middle Road will eventually be changed to a 4-lane road. When that happens, my clients will either lose a significant portion of their front yards, or their homes will be taken altogether. That's just another reason the City should consider taking their homes now. On January 24, 2005, my clients each received a letter from the City Manager requesting written confirmation of the resulting loss of value based on the rezoning. At their own expense, my clients hired William Luksetich, an independent appraiser, to conduct a formal appraisal of each property. He was specifically directed to appraise the properties as if the neighboring property was not being rezoned for industrial use. Those appraisals were sent to the City Manager on January 28, 2005. Along with the appraisals was a letter saying each of my clients was willing to accept those appraised values as a fair representation of the fair market value, and each would accept that value if the City would agree to purchase his/her home. In the alternative, the homes could be sold on the fair market, with full disclosure to all potential buyers that the neighboring property was being rezoned, and the City could reimburse my clients for the difference between the appraised value and the actual sale price. My clients are even willing to allow the City to control the sale. Subsequently, I received a letter dated February 22, 2005, from Barry Lindahl saying, "The City Manager and I met with the City Council in closed session last night to discuss your January 28, 2005 letter. Before making any decisions with respect to possible acquisition of these properties, the City Council directed us to have our own appraisal of the property completed." The City had an appraisal done, and those reports just came to my attention last week. Along with the appraisals I received a letter from the City Manager saying the City Council has directed him not to pursue these properties. When the appraiser came to Mr. Lex's home, he was specifically asked to appraise the properties assuming heavy industrial use behind them. Not surprisingly, the results were significantly lower than the first appraisals. Each appraisal differed from the first by at least $10,000. As stated previously, the Council was certainly sympathetic to my clients' position in December. Elaine White actually listed her property for sale and had numerous prospective buyers look elsewhere when they learned of the forthcoming industrial park. This is not a speculative financial loss. These people have suffered an actual loss. Not only have they suffered a financial loss, but they've also lost the quiet, peaceful, serene country setting they've enjoyed for many, many years. They are all willing to be very reasonable. They're not trying to 06/14/2005 Page 2 of2 profit from this situation; they're only looking to get fair market value for their properties. They would sell their properties to the City, or they would agree to sell them on the open market for the highest possible price, and accept the difference from the City. That would be an inexpensive way for the City to make these people whole. I thank you for your time, and I hope that you will review this matter closely. We are willing to meet with you to discuss this matter further. We are also willing to entertain any other possible resolutions. Sincerely, Thomas A. Bitter Bitter Law Offices 485 Locust Street (563) 588-4608 (563) 588-0103 (fax) 06/14/2005