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655 Gillespie St FMV - Need for Detention Basin D~~~E ~<k~ MEMORANDUM February 28, 2006 11 TO: The Honorable Mayor and City Council Members \.-' FROM: Michael C. Van Milligen, City Manager SUBJECT: Establishing the Fair Market Value of a Property to be Acquired for Expansion of the 32nd Street Detention Basin According to the Bee Branch Drainage Basin Master Plan, the property at 655 Gillespie Street is one of 16 homes identified for purchase and removal of the residences for expansion of the 32nd Street Detention Basin. Adams Appraisal Services appraised the property at 655 Gillespie Street owned by Gary A. Anderson and established the appraised value at $150,000. On October 10, 2005, an offer to purchase in that amount was made to the property owner; however, no response has been received to the offer. Housing and Community Development Department Director David Harris recommends the City Council establish the fair market value of the property located at 655 Gillespie Street in the amount of $150,000, for purposes of acquisition of the property for the expansion of the 32nd Street storm water detention basin. State law requires the City make a good faith effort to negotiate with an owner before proceeding with acquisition by eminent domain. I concur with the recommendation and respectfully request Mayor and City Council approval. flJzi 1;;11.~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director C/Uo , . . . --.---- OOB~E ~<k~ MEMORANDUM 27 February 06 To: Michael V~~illigen, City Manager From: David Hiri\s, Housing and Community Development Department Re: Establishing the Fair Market Value of a Property to be Acquired for Expansion of the 3200 Street Detention Basin Introduction The purpose of this memorandum is to request the City Council to establish fair market value of a property located at 655 Gillespie Street, for purposes of acquisition of the property for expansion of the 3200 Street storm water detention basin. Discussion The Housing and Community Development has offered to purchase the single family home located on Gillespie Street from Gary A Anderson, the owner and occupant. The offer was made on 10 October 2005. This is one of 16 homes identified for purchase and removal of the residences, for expansion of the detention basin according to the Bee Branch Drainage Basin Master Plan. This is one of the two homes remaining to be acquired; construction activities are scheduled to commence this spring. The Department commissioned an appraisal, byAdams Appraisal Services. The appraised value was established at $150 000. As we have not reached an agreement with Mr Anderson to acquire the property, the next step in the acquisition process is for the City Council to establish the fair market value of the property by resolution. Action Step The action requested of the City Council is to adopt the attached resolution establishing the fair market value of the Gillespie Street property. cc: Barry Lindahl, Corporation Counsel RESOLUTION NO. 73-06 ESTABLISHING THE FAIR MARKET VALUE OF REAL PROPERTY OWNED BY GARY A ANDERSON LOCATED AT 655 GILLESPIE STREET IN THE CITY OF DUBUQUE WHEREAS, the City of Dubuque (City) intends to acquire certain properties located in the area adjacent to the West 32nd Street detention basin for purposes of storm water mitigation activities as recommended in the 2001 HDR "Drainage Basin Master Plan;" and WHEREAS, the City intends to purchase real property owned by Gary A Anderson legally described as: Lot 2-1-8 Gillespies Subdivision, in the City of Dubuque, County of Dubuque, Iowa, (the Property) according to the recorded plat thereof; and WHEREAS, Iowa law requires City to make a good faith effort to negotiate with an owner to purchase an interest in real property before proceeding with acquisition by eminent domain; and WHEREAS, City may not make an offer to purchase an interest in property which is less than the fair market value the City has established for the property; and WHEREAS, the City has caused an appraisal of the Property to be made and the appraised value of the Property is One Hundred and Fifty Thousand Dollars ($150 000); and WHEREAS, the City Council now desires to establish the fair market value of the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The fair market value of the Property is One Hund red and Fifty Thousand Dollars ($150 000). Section 2. The City Manager and Corporation Counsel are hereby authorized to commence negotiations with the owner for purchase of the Property at a price not less than the fair market value established by this resolution. PASSED, ADOPTED AND APPROVED this 6th day of March, 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk .......... .-/: Jeanne Schneider, CMC City Clerk .. H&CD Housing and Community Development Department 1805 Central- Avenue Dubuque, Iowa 52001-3656 (563) 589-4239 office (563) 589-4244 fax 5UB~E ~ck~ 19 January 06 Gary Anderson 655 Gillespie Street Dubuque IA 52001 Re: 32nd Street Detention Basin Project Gary: On 29 September 05 you were sent a copy of the appraisal and a copy of the review appraisal for your Gillespie Street property, establishing value at $150000. On 10 October, you were sent an offer to purchase, in the amount of $150000. Subsequently, you expressed a complaint to us about the appraisal and we arranged for you to discuss this issue with the appraiser. We subsequently met with you in our office to discuss the terms of the relocation assistance. During that conversation, you indicated that the $150 000 price was a fair indication of your property's market value. You have not, however, either accepted or rejected the City's offer to purchase YOur property. At this time, we must move ahead with proceedings to acquire. You must notify our office of your decision no later than 8 February. If you do not, or if you' decline this offer, we will proceed with the next step in the process, by placing this matter before the City Council. Please contact Joleen Patterson in our office, at 589-4239, for additional information. Sincerely '\ ~.~~,,"r David Harris Department Director Service People Integrity Responsibility Innovation Teamwork DATE October 10.2005 CITY: PROJECT: The City of Dubuque. Iowa 32nd Street Storm Water Detention Basin OFFER TO PURCHASE AND NOTICE OF EARLIEST MOVE DATE OWNER Gary Anderson ADDRESS 655 Gillespie Pursuant to Federal and State regulations, the City of Dubuque, Iowa presents to you Gary Anderson an offer of One Hundred and Fifty thousand and 00/100 ($150,000), which represents just compensation for your property. You will not be required to move from your dwelling or to move your business, farm operation or non-profit organization without at least a ninety (90) day written notice of the date by which the move is required. If you must move from your dwelling, this ninety (90) day notice will be based on a then currently available replacement dwelling or dwellings. However, you will not be required to move earlier than when notice of a comparable replacement dwelling is available. You and the City of Dubuque may agree to a date by when you will move which varies from the date specified in the ninety (90) day notice. If such an agreement is reached, it will be specified in the contract that you sign with the City of Dubuque, and your agreement will constitute a waiver of the right to receive a ninety day notice. If you must move, or move your personal property from your property, you will also receive a written notice at least 30 days prior to the specific date you either agreed to move or the date when you must move. By Joleen A. Patterson Relocation Agent September 29,2005 Gary Anderson 655 Gillespie St. Dubuque, IA 52001 RE: 32nd Street Storm Water Detention Basin Project Parcel 14 Gary: Attached is a complete copy of the appraisal and review appraisal for the acquisition of your property located at 655 Gillesoie Street. The appraisals indicate the recent appraised value and represent just compensation, as required by the Code of Iowa. You have the right to review this appraisal for 10 days from the date of this letter, prior to having an Acquisition Agent contact you. However, if you would like to discuss the acquisition and/or schedule a meeting sooner, you may waive the 10-day requirement by contacting me at 589-4239. As a property owner you have certain rights. Enclosed is a copy of the Statement of The Rights of Individual Property Owners for your review. Sincerely, Joleen A. Patterson Enc.