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Southern Ave Property Sale - Rowells DUB~E ~ck~ MEMORANDUM October 10, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Southern Avenue Property Sale . Allan and Constance Rowell have approached the Park and Recreation Advisory Commission about purchasing a piece of property along Southern Avenue. The property proposed to be purchased is part of a parcel of land which will be home to a future mini park. However, the proposed area is largely bluff area that would not be used for active play, and its value to the park system is as open green space. Leisure Services Manager Gil Spence recommends sale of the property for a purchase price of $30,000, and recommends that a public hearing be set for November 7, 2005. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager GiI D. Spence, Leisure Services Manager \' .. ~~~JE ~Yk-~ MEMORANDUM October 10, 2005 TO: Michael C. Van Milligen, City Manager FROM: Gil D. Spence, Leisure Services Manag~ SUBJECT: Southern Avenue Property Sale INTRODUCTION The purpose of this memorandum is to request that the City Council initiate the process to sell City-owned property along Southern Avenue to Allan and Constance Rowell. BACKGROUND With the construction of Highway 52/151 through town, the City was able to acquire a parcel of property along Southern Avenue in 1992. Early discussions were that Molo Oil Companies would purchase this property from the City and develop a park. The Iowa Department of Transportation did not allow that sale so trees were planted by a group of volunteers and the City developed plans for a park. The Park Division C.I.P. budget contains $35,000 in FY 2008 for a play unit for this park. DISCUSSION The Park and Recreation Advisory Commission have been approached by Allan and Constance Rowell to purchase a piece of property along Southern Avenue. The Rowells grew up in that neighborhood and hope to retire there. They first asked to purchase the area where the main body of the park was to be located. Neither the commission nor staff supported that proposal. They returned some time later with the present proposal. continued .' .. Southern Avenue, page two Attached is a plat showing the property. The Rowell's hope to purchase the part colored in yellow. The area colored in green would be the park. It is hard to see on this copy but the area the Rowell's want to purchase is largely bluff area. The area for the house widens enough to allow for construction. This area would not be used for active play and its value to the park system is as open green space. The Park and Recreation Advisory Commission support the sale of this parcel. An appraisal of this property has been completed by Kane Appraisal and Real Estate Services and they set the value at $30,000 for the entire parcel. Attached is an Offer to Buy Real Estate and Acceptance from Mr. and Mrs. Rowell. Items of note in the offer include: . The sale is contingent on the property being rezoned to R-1 or R-2. . Extension of water to the site will be done at the buyer's expense. . A restrictive covenant is added prohibiting the buyer and buyer's successors from excavating or materially disturbing the bluff on the rear portion of the property. The Park and Recreation Advisory Commission and staff does not advocate the sale of . park property unless the property has little value to the park system and its re-use is friendly to the neighborhood and adds to the tax roll of the City. This seems to be the case here. The mini park that is being developed at this location will not be impacted if this parcel is sold. Some open green space will be lost but the single family home will fit into the neighborhood. ACTION STEP The action requested is that the City Council adopt the attached resolution setting a public hearing for November 7,2005 on the sale of this property. GDS:et attachments Preparer: Gil D. SDence Address: 2200 Bunker Hill Rd Phone: (589) 589-4263 RESOLUTION NO. 485-05 INTENT TO DISPOSE OF CITY INTEREST IN LOT 29, 30, AND 31 OF MINERAL LOT 39, THE EASTERLY 30' OF LOT 1 OF JOHN BREAKEY'S DUBUQUE, THE WESTERLY 56' OF LOT 1 OF JOHN BREAKEY'S DUBUQUE, LOT 2 OF JOHN BREAKEY'S DUBUQUE, DUBUQUE, IOWA BY SALE TO ALLAN L. AND CONSTANCE J. ROWELL WHEREAS, Allan L. and Constance J. Rowell have requested the vacating and purchase of City of Dubuque property, to wit: LOT 29, 30, AND 31 OF MINERAL LOT 39, THE EASTERLY 30' OF LOT 1 OF JOHN BREAKEY'S DUBUQUE, THE WESTERLY 56' OF LOT 1 OF JOHN BREAKEY'S DUBUQUE, LOT 2 OF JOHN BREAKEY'S DUBUQUE, DUBUQUE, IOWA (the Property); pursuant to an Offer to Buy Real Estate and Acceptance, a copy of which is attached hereto; and WHEREAS, the City Council of the City of Dubuque, Iowa has tentatively determined the Property is no longer required for public use and that the sale of the Property is in the public interest and should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City of Dubuque intends to dispose of its interest in Lot 29, 30, and 31 of Mineral Lot 39, the Easterly 30' of Lot 1 of John Breakey's Dubuque, the Westerly 56' of Lot 1 of John Breakey's Dubuque, Lot 2 of John Breakey's Dubuque, Dubuque, Iowa by sale pursuant to the Offer to Buy Real Estate and Acceptance. Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the City's intent to dispose of the foregoing-described Property, to be held on the 7th day of November, 2005, at 6:30 o'clock p.m. at the public library auditorium, 11th & Locust, Dubuque, Iowa. Passed, approved and adopted this 17th day of October ,2005. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk -.. ,~" <'. -6' ~ I \':;~ a2' "'" -;c,." \':P . ....'\ ,~. \. \9'" 6'S \'*' Cf:> 6(s>~9 Os "I........ -# -";..,1 ;;~ '':'':: " ": .. " " 911),> ~'.. <', 6'6' 1Y, ~ 0'''' '\ '\V~ s~ '" .,'.66-, "'i?'.. EP .-:'.:1 ....- .,.... -r1>' .. 'f" s~ ~", \v' _ \0: ~ s. '" . ~'.'-.' "....:_~, ~:=';'~.:,-', . . ~.~f:.t,!~n~.;~< \61- ~ ~~:TJ/s.;" . ,-,-~,-:..,_:t~bo:-'-""'''-:':':..;.'-.~:." ":",-:'~...,. <::t..f~J.:..., "', . '7"'& .s>i' i"}~ $ '(', ,1".:1 '\ ...; \11 ,0':, $>' '" ~-:~; ~ ,0'2.'" .... ~ Os ,~\)'=> \0'2. "", Os .-..J " Os \'1.0 \\1 \....~ \\'" -) o!'", . '1 b- <',!' '\I~ " v-;t", ':i ']' ./" '//0 8' Os \\'1..0; \\'2..0; ;' ill \01 ....",0 ~ ~ "09 ~ .... ~ ,it;:<'- ". 'i c..; ~:....:. . ):~ os. 'J: \ ~ si ." ~/; r'~' / /,<, ~~/t. I' ~. I (-.;;;". . eX, . / ,,'!J~'1,'" /~~~: ' ..' . "','./. ~ /' ./,-:fe;' &:- ';..: '" \~../ A" -- '0 c.- .;" _tt'"/~ ,\, - 'ii _5 c:::'-'.LS::: ... OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: City of Dubuque, Iowa, a municipal corporation, Seller 1. REAL ESTATE. The undersigned Buyers offer to buy real estate in Dubuque County, Iowa located on the north side of Southern Avenue and between Samuel Street and Locust Street in the City of Dubuque, Iowa, which property is legally described as follows: Attached drawing shows location of real estate - legal description to be provided by Seller, together with and including any and all easements and appurtenant servient estates, but subject to the following: a) any zoning or other ordinances and (b) any easements of record for public utilities, roads and highways, which property is hereinafter referred to as the "Real Estate." 2. CONDITIONS OF PURCHASE. obligation to purchase the Real Estate conditional upon satisfaction of all of prior to the closing date: The undersigned Buyers' is expressly subject to and the following contingencies (a) Rezoning of the Real Estate to an R-1 or R-2 Residential District Classification; (b) Seller's approval of the disposal and sale of the Real Estate to Buyers in accordance with the requirements of section 364.7 of the Iowa Code and any other applicable statutes or ordinances; and (c) An agreement from Seller to construct or authorize, at Buyers' expense, an extension from the west of the water main as necessary to provide water service to the Real Estate. 3. PRICE. The total purchase price shall be $30,000.00 and shall be payable in full at the time of closing. 4. CLOSING DATE AND POSSESSION. Closing and transfer of possession to Buyers shall occur within 30 days following the satisfaction of all of the conditions and contingencies set forth at paragraph 2 above. 5. RESTRICTIVE COVENANT. The conveyance of the Real Estate to Buyers shall be subject to a restrictive covenant providing that Buyers and Buyers' successors and assigns will not excavate into or materially disturb the existing bluff on the rear portion of the real estate. This restrictive covenant may be included in the deed referred to at paragraph 10 herein or may be set forth in a separate agreement between Seller and Buyers. 6. REAL ESTATE TAXES. The Real Estate is presently exempt from taxation. Any and all future real estate taxes assessed against the Real Estate shall be paid by Buyers. 7. SPECIAL ASSESSMENTS. Seller shall pay all special assessments, if any, which are a lien on the Real Estate as of the date of acceptance of this Offer. All subsequent special assessments shall be paid by Buyers. 8. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyers. 9. ABSTRACT AND TITLE. Seller, at Seller's expense, shall obtain an abstract of title to the Real Estate, continued through a date not more than 30 days prior to the date of possession and closing, and deliver it to Buyers for examination. Said abstract 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 Buyers when the purchase price is paid in full. 10. WARRANTY DEED. Upon paYment of the purchase price, Seller shall convey the Real Estate to Buyers by warranty deed, free and clear of all liens, restrictions and encumbrances. 11. TIME IS OF THE ESSENCE. Time is of the essence in this contract. 12. REMEDIES OF THE PARTIES. (a) If Buyers fail 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 30 days written notice of intention to accelerate the paYment of the entire balance because of such failure (during which 30 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. (b) If Seller fails to timely perform this contract, Buyers have the right to have all paYments made returned to them. (c) Buyers 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. .- 13. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. 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. 15. TIME FOR ACCEPTANCE. If this Offer is not accepted by Seller on or before the day of , 2005, it shall become void. Dated: August ~ '( , 2005. ~~ Allan L. R I, Buyer ~iir'{(,~' Constance J. Row II, "Buyer THIS OFFER IS ACCEPTED the day of , 2005. CITY OF DUBUQUE, IOWA, a municipal corporation, Seller By F:\WPDOCS\SHEILA\DOCS\GKN\Rowell-City of Dubuque Offer to Buy.wpd l"-