Bee Branch Creek Restoration Project_Property Acquisition 501 E 15th Street_BlumTHE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
kital
All- America City
II h/
2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bee Branch Creek Restoration Project, Acquisition of 501 E. 15th Street
CIP 7201654
DATE: January 24, 2013
City Engineer Gus Psihoyos recommends City Council approval to purchase a property
for $277,000, which is $5,000 more than the appraised value, located at 501 E. 15th
Street owned by Alvin Blum. This purchase is part of the acquisition program
associated with the Bee Branch Creek Restoration Project.
Per the terms of the purchase agreement, Mr. Blum will retain use of the property until
April 30, 2014, which will be the closing date unless otherwise agreed upon by both
parties. The property is currently being used to reclaim and recycle scrap metal for
resale. The April 30, 2014 closing date will allow Mr. Blum to consolidate and sell
accumulated scrap aluminum using the 1995 AI -Jon United Division AS -1500 Aluminum
Melt Furnace (smelter) on the property to be acquired by the City. Allowing Mr. Blum
the time to sell the aluminum will eliminate the need to relocate the aluminum, the cost
of which is typically borne by the City in accordance with the federal Uniform Relocation
Act that outlines the benefits of relocated persons and businesses. In addition to
purchasing the property, the City would purchase the smelter at the appraised value of
$77,100.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kr,„709,,,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
Masterpiece on the Mississippi
TO: Michael C. VanMilligan
Dubuque
kard
AlI4menca cnr
2012
FROM: Gus Psihoyos, City Engineer
n
SUBJECT: Bee Branch Creek Restoration Project, Acquisition of 501 E. 15th Street..,. :r`1
CIP 7201654
DATE: January 24, 2013
INTRODUCTION
The purpose of this memorandum is to request City Council approval to purchase a
property required for the Lower Bee Branch Creek Restoration Project at 501 E. 15th
Street owned by Alvin Blum.
BACKGROUND
In December of 2001, the City Council formally adopted the Drainage Basin Master Plan
(DBMP) prepared by HDR Engineering (Omaha, Nebraska). Based on the study,
approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of
flood damage.
In December of 2004, the City Council established the alignment for the Bee Branch
Creek Restoration Project, from 15th and Sycamore Streets to 24th and Washington
Streets, and established a building permit moratorium for the properties impacted based
on the alignment.
In December of 2010, the City Council authorized the City Manager to initiate the
process of acquiring 501 E. 15th Street for the Lower Bee Branch Creek Restoration
Project.
DISCUSSION
The owner of the property, Mr. Alvin Blum, has agreed to sell 501 E. 15th Street for
$277,000 which is $5,000.00 more than the appraised value of the property. The
attached Exhibit A shows the location of the property.
Per the terms of the purchase agreement, Mr. Blum will retain use of the property until
April 30, 2014 which will be the closing date unless otherwise agreed upon by both
parties. The property is currently being used to reclaim and recycle scrap metal for
resale. The April 30, 2014 closing date will allow Mr. Blum to consolidate and sell
accumulated scrap aluminum using the 1995 Al -Jon United Division AS -1500 Aluminum
Melt Furnace (smelter) on the property to be acquired by the City. Allowing Mr. Blum the
time to sell the aluminum will eliminate the need to relocate the aluminum, the cost of
which is typically borne by the City in accordance with the federal Uniform Relocation
Act that outlines the benefits of relocated persons and businesses.
In addition to purchasing the property, the City would purchase the smelter for the
appraised value of $77,100.00 at the same time the City purchases the property. Again,
allowing Mr. Blum to use the smelter until April of 2014 to liquidate the accumulated
supply of aluminum scrap metal will eliminate the need to relocate both the aluminum
scrap metal and the smelter. The cost to relocate the aluminum and the smelter is
estimated to cost hundreds of thousands of dollars. Therefore, it is more cost effective
to purchase the smelter in the spring of 2014 than to pay the costs associated with
having it relocated by Mr. Blum to another location. The City would then either
deconstruct the smelter or possibly sell it as a unit to recoup some of the expense
related to purchasing the equipment.
RECOMMENDATION
I recommend that the City purchase 501 E. 15th Street for $277,000.00 and the 1995 Al-
Jon United Division AS -1500 Aluminum Melt Furnace for $77,100.00.
BUDGET IMPACT
The purchase price is within the budget established for the property. It will be funded
from the FY2013 appropriation of $2,723,388 for property acquisitions for the Bee
Branch Creek Restoration Project (CIP# 7201654).
Payment for the property will not be made until the spring of 2014 per the terms of the
purchase agreement signed by Mr. Blum.
ACTION TO BE TAKEN
I respectfully request adoption of the attached resolution authorizing the purchase of the
property owned by Mr. Alvin Blum at 510 E. 15th Street legally described as the North 35
feet of Lot 255, South 15 feet of Lot 255 and Lot 256 East Dubuque Addition, all in the
City of Dubuque, Dubuque County, Iowa.
Attach.
Prepared by Deron Muehring, Civil Engineer II
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Deron Muehring, Civil Engineer
RESOLUTION NO. 30-13
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
OWNED BY BLUM PROPERTIES, INC. IN THE CITY OF DUBUQUE
Whereas, the City of Dubuque intends to acquire certain properties
located in the area of the Bee Branch Creek Restoration Project for
stormwater mitigation activities as recommended in the 2001 "Drainage Basin
Master Plan;" and
Whereas, a purchase agreement has been finalized with the owner of
the property scheduled for acquisition.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby approves the acquisition
of the following legally described property:
North 35 feet of Lot 255, South 15 feet of Lot 255 and Lot 256 East
Dubuque Addition, in the City of Dubuque, Dubuque County, Iowa
At the cost of Two Hundred Seventy Seven Thousand and 00/100 Dollars
($277,000.00).
Section 2. That the City of Dubuque hereby approves the acquisition of
the 1995 Al -Jon United Division AS -1500 Aluminum Melt Furnace owned and
operated by Blum Properties, Inc. at the cost of Seventy Seven Thousand One
Hundred and 00/100 Dollars ($77,100.00).
Section 3. That the City of Dubuque be and is hereby authorized to
accept a Quit Claim deed from the owner, conveying the owner's interest to
the City of Dubuque, Iowa for the herein described real estate.
Section 4. That the City Clerk be and is hereby authorized and
directed to cause said Quit Claim Deed to be recorded in the office of the
Dubuque County Recorder, together with certified copy of the Resolution.
Section 5. That the City Clerk be and is hereby directed to forward a
copy of this Resolution to the Dubuque County Assessor and the Dubuque
County Auditor.
Passed, approved and adopted this 4thday of February , 2013.
''/
Key' Firnsthal, CMC, y Clerk
Roy D. Buol, Mayor
Exhibit A
Bee Branch Creek Restoration Project Property Acquisition
Address:
501 E. 15th Street
Legal Description: North 35 feet of Lot 255, South 15 feet of Lot 255 and Lot 256 East
Dubuque Addition
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Cty CIerk's OMoo
Dubuque, IA
PREPARED
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TAXPAYEN: Oyu( Pubequv Eageneris; Dirisige, 50 Wee IAA %me, eaheque, LAS 52001i Pfme4(50)5894:176
RETURN 'TO: 1C0 f.a.1.1.Servir,z toe 17I5 Siid iArran% Nortr.14., IA 50201 "1m: (515)332-469$
TAX STATEMENT TO: N/A
Page
TIYTAL ACQUISITION PURCRASE AGREEMENT
PARCEL NO, Blunt COUNTY Dutmene
PROJECT Dee Branch Phase 3 BUYER Tho City of Dubuque. ,
SELLER: Blum Pronerties, h.
THIS AGREEMENT made and entered into this 8th day of February 20 13 , by and betweee Seller anti The City of
Dethurme, IA, Buyer,
SELLER AGREES to etl and furnish to Buyer a deed, on form(s) finished by Buyer, and Buyer agrees to buy the
following real estate, hereinafter referred to as the penises:
Lots 255 and 256 In east Dopuonte Addi tlon Ouboaue. TA, 52009
County or Dubuque , Salk of lova, which includes the following buildings, improvements and other propwey:_ll
hnorevements located thereon
The premise: also includes all estates, rights, tido and Interests, lac:Wings/I easements, asdaUadvertising devices and
the right to erect such devicei are located therm, SELLER. ACKNOWLEDGES full settlement and payment from
Buyer thr all claims per the terms of this contract and discharges Buyer from liabiTety because: of this contract and the
coistruction of this public improvement project
2 Possession of the premises is the essence of this contract and Buyer nmy enter and =UDC full use and enjoyment of the
premises per the terms of this contract SELLER GRANTS Buyer the immediate right to enter the premises for the
purpose of gathering survey and soil data. SELLER MAY surrender possession of the premises or building or
improvement or ally part thereof prior to the lime at which ho has hereinafter agreed to do so, and agrees to give Buyer
ten (10) days notice of Selkes intention to do so by ceiling Buyer coder
3. Buyer Agrees to pay and SELLER AGREES to grant the right of possession, convey time and to stnender physical
posse or the premises es shown on or bean the dates fisted below,
PA Y M ENT AMOUNT AGREED PERFQRBtANCE DATE OF PERFORMA.NCE
on right of possession
on conveyance or thle
on Sereelder of possession
5 277.0e0.00 on posstasion And convey uice 80 days atter Bayer:vernal
$ Th000O0 TOTAL LUMP SUM
BREAKDOWN
Land by Fee IltIe
Undurlyin Fee Tith;
10.150
AC-40.FT,
SELLER WARRANTS that there are no tenants on be premises holding Ander lease wicept
none
This connect shell apply to and bind the legal successors In kart:nor the Seller and SELLER AGREES to
pay ;di &RS and assessments against the premises, int:Fading all taxes and special assent:tents payable -until surrender of
possession as required by the Code of Iowa. and agrees to warrant good and sufficient title, Names and addresses of
lienliothiets ere:
DISTRIBUTION: rwo COKES RETURNED TO BUYER - ONE COPY RETAINED BY SELLER
Page 2
PARCEL NO. 811nn COUNTY_ Dublaute _
PROJECT __I.:Manta:JIM:is 1 BOYER ThivofOibequj&
SELLER: Ethan Properties. Mc.
Buyer may include mortgagees, Penholders, eneumbraneers and taxing initheside-s as payees an warams as contract
payment The Seller Mall pay allcurrent unpaid property taxes aunt penalties, ifany, anti pruperty taxes Atoll be ptorated
in accordance with loos Code Section 427_2. SELLER WILL, tarnish and deliver to Th City ofDlibugae, IA, Dubtame,
town an abstract of iitle amcinued to date showing marchatu tat* title to the pnearises in Seller. Buyer agrees to pay the
cost of abstract continuation. SELLER. AGREES to obtain COO( approval of this contract, if requested by Buyer, if dile
In the premises becomes an asset of any rstan, Mn. conservatorship or guardianship. Buyer agrees to pay mut
approval costs and all other coats accessary to transfer Me pmmises to Buyer, hut nor attorney Bea. Claims tbr such
transfer costs shall be paid in mounts supported by paid receipts or signed bills,
If Seller habit title to the premiers in joint tenancy with fall rights of survivorship and not as tenant In common at the
tine of this contract, Buyer will pay any n.snaining proceeds to the survivor of that join tenancy aud will accept title
solely from that stativer provided the joint tenancy has not been destroyed by operation of law Or acts Seiler.
8, These premises are bung acquIred tbr public purposes and this banger ia exempt Boat the requirements for the filing of a
Declaration of Value by the Code of hove.
9. Seller Sates and waraats Oat Mem is no known well, solid waste disposal aim, hazardous substances, underground
storage ranks Of band sites an do: premises duo:tibial and Totten herein, except as noted in the Enviraumental ouij
10. Selkr shall protect the premises flan damages and shall prevent injury to pe.ople. Seller shall make all repairs to the
heating system, roof, electrical system, doors. windows. and equipment necessary to maintain the premises in a safe
operating condition to prevent damage to the premises and to avoid injury mall occupant; guests, and the general public.
Seller shall indemnify and save the Buyer female's from all lass, claims, and CHUM of action for all damage Loproperty
and injury to persons arising ma ef Scifer's continued possession and use ache property.
11, Seller agrees to lump tae, tornado, extended coverage and added petits insuraace in the miainnim amount of $
, payable to all patties aster interests may ...wpm)" from Ibis date until delivery of the deed and possession.
Buyer shell notify aft inurreace companies of this cnatimer. hi =se of los or dcwractien aCpatt ur all of the premises
from causes covered by the insurarew, SELLER. AGREES to accept dm lump suet payment, to endorse the proceeds of
any such EnsuninCO recovery to Buyer. and SELLIiik ASSIGNS to Buyer any and all of Selteds rights under such
insurance contracts.
Seller astro to maintain existing liability insurance for less or danuip to Mc pm pc rty or Ric personal injury arising out
of Sellars cootinued possession or use of die property.
Sellers Insult -awe Agent and Carrier -Name g.
Addresv
Noa.
13. Section 30623 of the C'ode of kora eves seller first right to pmettise, a due appraised value, any part of the above
dtscribed property that becomes excess right-of-way. Seller does hereby relinquish ail rights as given in Section 30623
uf the Code of Iowa tO the premises, and dos consent and agme to an illunediate *lie of such property by the Buyer.
It is nadostood and, agreed that Seller does not jeotrarcTi2e any rights lo mine -mien assatance benefits avaRable wider the
lane by signing this comma.
5. lovra Role 118A.3 requires written notice be provided to Me Seller that this ctattnieci is a binding legal document and that
competent legal advice should be sought .
ze• 101/4,/
Purchaser will sambas:me 1995 Al-loa United vision AS -1500 Aluminum halt Furnace for the *wised value of
$73,1calou, Seller may moth= to use the Barnette, until Purchaser tak-rnposaeashin of tbraamon moving day. Purrlascr
wilt provido a check for that hem on that time.
Seller agrees to vacate prevaiscs on or before April 30. 2014. (doing date unless otherwise agreed to by harsh patsies)
Sena agrees to sell ornuutnUinvent:nits on a before that dam, Buyer agreca to pay a maximum of S5,0110.00 based
at actual material to relocate any salenuge material not sold or removed atter the futal move demon or before April 1,
7014. Buyer will pay through relootion benefits to move any personal property frau the premiaes.
19. ttuyer will pay V1,000.00 to replace concrete en remaining lot. Payment will be made atter completion a cwacto
Project.
19- Seller retains ownership of gates Being south en Soo* entry and savage rights to buildings ft Seiler salvages all
property mast be removed prier April 30, 2014.
20, This written contract tonging= the attire agreement between Buyer alld Seller and there lino sgreewent to do or out io
do any aca or deed exceprna specifically provided for herein.
17-
21. Each page and each attachment is by tins reference nide a pan hereof and the entire agreemeta consists al, pages.
Page 3
COUNTY laubuque
PROJECT Brandi Pturae BUYER The City ofDitbuous.A
SELLER:_ _ Bluritikopeiliojpc
SELLER'S SIGNATURE AND CLAIMANT'S CERTIFICATION: Upon dupp Ir.i excention by 81ipn, we the
unders4Rted claimants certify the Total Lump Sum payment shown herein is just snd unpaid.
BY:
BY:
ALL-PURFOSE ACKNOWLEDGMENT
STATE OP "--1:0‘-, ik )
COUNTY OF _____ ) se
On This C" drty or \ -,'Icc— A.D. 20 1-2- before ate,
dm undasi;Ited, a Notary Public 41,11K1 for said State, personalty appeared
L'L
the personalty known
-
pw o ne n the basis rat -satisfactory evklence
to be dm person(s) whose nante(s) iufire subscribed to die within
Instrament and acknowledwd at roe that belsheAhcy executed the same in
histerftscir sutharized capacity(ies), and that by hisAerAheirsignatures(t)
on the Instrument the person(s), or the eat ity(ies) upon behalf of which the
persan(s) acted, executed the instnatmat as bherdheir voluntary act and
the vo and deed of said entity by it Yohnitary executed.
caLITY CIAMED RY SIGNER:
INDIVIDUAL
_ CORPORATE
_Corporate Seal is alibied
No Corporate Seal procured
_ PARTNERSHIP; Limited
General
ATTORNEY-IN-FACT
EXECUTOR (s) orTRUSTEE()
CVAIIDIAN(s) or CONSERVATOR(s)
OTHER:
SIGNER IS REPR
of ent'
ROYER'S ACKNOWLEDGEMENT
STATE OF IOWA,
COUNTY OF DULIINUE, ss;
On this day of LMLL the undendavert, persurailly appeared,
S
known to Roo ko ito („. LI:J1Je:' I 0.1 P PZ- andof Buyer rind who
did say that said instilment was aigned oa behalf of Buyer by its authority duly recorded in its 'Mows, and said
and aticnowleclga the execution of said instrument, which signature
appears hereon, to be the voluntary act and deed of Buyer and by it voluntarily exceuted.
ROVER'S APPROVAL
r Jr.
Nooery l'idifc in and for the Slate of Iowa
Date;
LYNN M. SCHLUETER
Notarial Seal - IOWA
Commission Number - 744354
Mv Commission Expires L.471/ -