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Purchase of 735 Caledonia PlaceMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Authorization for Signature on Offer to Buy 735 Caledonia Place Agreement DATE: February 25, 2013 Dubuque kital All- America City II 111! 2012 At the August 6, 2012 City Council meeting, the City Council authorized the acceptance of the donation of 735 Caledonia Place from the James P. Lammer Estate. The terms of the agreement are $1.00, City demolition of the partially burnt home on the property, display of an American flag with a commemorative plaque, payment of the $101.22 water bill and use the property for expansion of the Hilltop Park. Leisure Services Manager Marie Ware requests City Council authorization for the City Manager to sign the Offer to Buy Real Estate and Acceptance Agreement for 735 Caledonia Place. 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 Teri Goodmann, 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 20, 2013 SUBJECT: Authorization for Signature on Offer to Buy735 Caledonia Place Agreement Dubuque All- America City 111 I' 2007 INTRODUCTION The purpose of this memo is to request authorization for the City Manager to sign an agreement to buy 735 Caledonia Place. BACKGROUND The City Attorney's office and myself has been working with the Executor of the James P. Lammer Estate on a purchase agreement for 735 Caledonia Place. This property is right next to Hilltop Park. In August the City Council approved the request to accept the donation. The terms of the agreement are $1, and City demolition of the partially burnt home on the property, display of an American flag with a commemorative plaque, payment of $101.22 water bill and use the property for park expansion. DISCUSSION The addition of this lot is highly desirable as it allows the playground at the time of its replacement to a location that is handicap acceessible. The hilltop location is also a beautiful location for a flag pole. Funds have been identified for the deconstruction costs from C.I.P. 102 -2299 in the amount of $17,093. Jenny Larson has approved this source as appropriate for the project. The City Attorney's office has worked with us on abstract and preparation of the deed as well as reviewing the attached agreement. RECOMMENDATION I recommend authorization for you to sign the Offer to Buy Real Estate and Acceptance Agreement for 735 Caledonia Place. Prepared by: MLW:et cc: Steve Fehsal Gus Psihoyos Crenna Brumwell Jenny Larson Mark Ludescher Alvin Nash Form 3.23: Release and Satisfaction of Judgment 2I eEB20 p1 3 314 In The Iowa District Court for Dubuque Corty COURT Release and Satisfaction of Judgment Plaintiff(s) BELLIO.UEAUX ESTATES, L.C. (Name) (Name) vs. Defendant(s) JAMES LAMMER a /k /a ESTATE OF JAMES LAMMER (Name) (Name) Small Claim No. 01311 SCSC059403 To Judgment Debtor(s): I (We) knowingly and voluntarily state that the judgment in this matter has been paid off or satisfied in full, including interest and court costs, and I (we) release the Debtor(s) named above from any further obligation on the judgment in this matter. Note: Failure to satisfy and release a judgment, when paid off or satisfied in full, could result in a penalty of $400.00 if not filed within 30 days of written request (Iowa Code section 624.37). Date: - moo✓ a t Date: ,.1drnent Creditor (must sign before a Notary) / k,---2 Judgment Creditor (must sign before a Notary) tiPn� -L SF SUSAN M. TiGGES Commission Number 113436 • 1t Certification of Acknowledgment (Iowa Code section 624.37): On this date, James W. Bauerly, Member /Manager of Belliqueaux Estates, L.C. appeared before me, acknowledged that signing this Release and Satisfaction of Judgment was a voluntary and knowing act, and signed the document before me. Date: Z -Zb _ 2_ 13 Notary Public or Clerk of • My Commission Eyjpire THE CITY OF DUB MEMORANDUM Masterpiece on the Mississippi TRACEY STECKLEIN PARALEGAL MEMO To: Kevin Firnstahl City Clerk DATE: March 25, 2013 RE: Purchase of Property from the James P. Lammer Estate 735 Caledonia Place Kevin: Attached for your file is the original fully executed Offer to Buy Real Estate and Acceptance regarding this matter. We will retain a copy in our file. Thank you. Attachment F: \USERS \Cbrumwel \735 Caledonia\ Firnstahl _OriginalOfferToBuy_032513.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001 -6944 TELEPHONE (563) 583 -4113 / FAx (563) 583 -1040 / EMAIL tsteckle @cityofdubuque.org OFFER TO BUY REAL ESTATE AND ACCEPTANCE (NONRESIDENTIAL) TO: Estate of James P. Lammer c/o Alison J. Prada, Executor (Sellers) The undersigned BUYERS hereby offer to buy and the undersigned SELLERS by their acceptance agree to sell the real property situated in Dubuque, Iowa, locally known as 735 Caledonia Place, Dubuque, IA 52001 and legally described as: Lot 2 of the Subdivision of the North 2/3 of Lot 34 of Kelly's Subdivision in the City of Dubuque, Iowa, Dubuque County, Iowa, according to the recorded plat thereof together with any easements and appurtenant servient estates, but subject to any reasonable easements of record for public utilities or roads, any zoning restrictions customary restrictive covenants and mineral reservations of record, if any, herein referred to as the "Property," upon the following terms and conditions provided BUYERS, on possession, are permitted to use the Property for: This property will be used to expand the presently existing Hilltop Park which is adjacent to the property. 1. CONSIDERATION. The consideration for this transaction shall be the following: A. The City of Dubuque will pay one dollar ($1.00) to the Estate of James P. Lammer. B. The damaged structure on said property will be demolished at the cost of the City of Dubuque. C. Any living plants and trees currently on the property will be conserved as much as possible by the City of Dubuque. D. The City of Dubuque will place an American Flag within the park The City of Dubuque will affix to the flag pole a plaque which bears the following inscription: "In honor of all who contribute military and public service to their country and community, James P. Lammer, and the firefighters who assisted with the fire on March 19, 2012 at this location." E. The City of Dubuque will take title to this property subject to an existing unpaid water bill of $101.22. F. This property will be used by the City of Dubuque to expand the presently existing Hilltop Park which is adjacent to the property. 2. REAL ESTATE TAXES. Sellers shall pay any unpaid real estate taxes payable for fiscal year 2010 -2011 and prior years. Sellers 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. 3. SPECIAL ASSESSMENTS. Sellers shall pay all special assessments which are a lien on the Real Estate as of the date of acceptance of this offer. All other special assessments shall be paid by Buyers. The City of Dubuque shall waive any 1 special assessments for weeding and clean -up of the property once the City of Dubuque acquires title to the property. 4. RISK OF LOSS AND INSURANCE. SELLERS shall bear the risk of loss or damage to the Property prior to closing or possession, whichever first occurs. SELLERS agree to maintain existing insurance and BUYERS may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, BUYERS shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The property shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. 5. POSSESSION AND CLOSING. If BUYERS timely perform all obligations, possession of the Property shall be delivered to Buyers on or before March 15, 2013, and any adjustments of rent, insurance, interest and all charges attributable to the SELLERS' possession shall be made as of the date of possession. Closing shall occur after the approval of title by BUYERS and vacation of the Property by SELLERS, but prior to possession by BUYERS. SELLERS agree to permit BUYERS to inspect the Property within 72 hours prior to closing to assure that the premises are in the condition required by this Agreement. If possession is given on a day other than closing, the parties shall make a separate agreement with adjustments as of the date of possession. This transaction shall be considered closed upon the delivery of the title transfer documents to BUYERS and receipt of all funds then due at closing from BUYERS under the Agreement. 6. FIXTURES. Included with the Property shall be all fixtures that integrally belong to, are specifically adapted to or are a part of the real estate, whether attached or detached. Also included shall be the following: N /A. The following items shall not be included: N/A 7. CONDITION OF PROPERTY. BUYERS acknowledge that they have made a satisfactory inspection of the Property and are purchasing the Property in its existing condition. 8. ABSTRACT AND TITLE. SELLERS, at their expense, shall promptly obtain an abstract of title to the Property and deliver it to BUYERS' attorney for examination. It shall show marketable title in SELLERS in conformity with this Agreement, Iowa law, and title standards of the Iowa State Bar Association. The SELLERS shall make every reasonable effort to promptly perfect title. If closing is delayed due to SELLERS' inability to provide marketable title, this Agreement shall continue in force and effect until either party rescinds the Agreement after giving ten days written notice to the other party. The abstract shall become the property of BUYERS when the Purchase Price is paid in full. SELLERS shall pay the costs of any additional abstracting and title work due to any act or omission of SELLERS, including transfers by or the death of SELLERS or their assignees. Unless stricken, the abstract shall be obtained from an abstracter qualified by the Guaranty Division of the Iowa Housing Finance Authority. 2 9. SURVEY. If a survey is required under Iowa Code Chapter 354, or city or county ordinances, SELLERS shall pay the costs thereof. BUYERS may, at BUYERS' expense prior to closing, have the property surveyed and certified by a registered land surveyor. If the survey shows an encroachment on the Property or if any improvements located on the Property encroach on lands of others, the encroachments shall be treated as a title defect. 10. ENVIRONMENTAL MATTERS. A. SELLERS warrant to the best of their knowledge and belief that there are no abandoned wells, solid waste disposal sites, hazardous wastes or substances, or underground storage tanks located on the Property, the Property does not contain levels of radon gas, asbestos, or urea - formaldehyde foam insulation which require remediation under current governmental standards, and SELLERS have done nothing to contaminate the Property with hazardous wastes or substances. SELLERS warrant that the property is not subject to any local, state, or federal judicial or administrative action, investigation or order, as the case may be, regarding wells, solid waste disposal sites, hazardous wastes or substances, or underground storage tanks. SELLERS shall also provide BUYERS with a properly executed GROUNDWATER HAZARD STATEMENT showing no wells, private burial sites, solid waste disposal sites, private sewage disposal system, hazardous waste and underground storage tanks on the Property unless disclosed here: N/A B. BUYERS may at their expense, within 14 days after the date of acceptance, obtain a report from a qualified engineer or other person qualified to analyze the existence or nature of any hazardous materials, substances, conditions or wastes located on the Property. In the event any hazardous materials, substances, conditions or wastes are discovered on the Property, BUYERS' obligation hereunder shall be contingent upon the removal of such materials, substances, conditions or wastes or other resolution of the matter reasonably satisfactory to BUYERS. However, in the event SELLERS are required to expend any sum in excess of $ -0- to remove any hazardous materials, substances, conditions or wastes, SELLERS shall have the option to cancel this transaction and refund to BUYERS all earnest money paid and declare this Agreement null and void. The expense of any inspection shall be paid by BUYERS. The expense of any action necessary to remove or otherwise make safe any hazardous material, substances, conditions or waste shall be paid by SELLERS, subject to SELLERS' right to cancel this transaction as provided above. 11. DEED. Upon payment of the Purchase Price, SELLERS shall convey the Property to BUYERS by Court Officer's Deed, free and clear of all liens, restrictions, and encumbrances, including but not limited to: A. Claims against the Estate of James P. Lammer. B. The March 31, 2006 mortgage to Intervale Mortgage Corporation, which was recorded on April 12, 2006 as Instrument. No. 2006 -5168 and later assigned by Instrument No. 2008 -4190 to HSBC Mortgage Services Inc. 3 C. Judgment, and interest, for the benefit of Belliqueaux Estates, L.C. filed on September 18, 2007, and except as provided in this Agreement. General warranties of the title shall extend to the time of delivery of the deed excepting liens and encumbrances suffered or permitted by BUYERS. 12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If SELLERS, immediately preceding acceptance of the offer, hold title to the Property in joint tenancy with full rights of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the SELLERS, then the proceeds of this sale, and any continuing or recaptured rights of SELLERS in the Property, shall belong to SELLERS as joint tenants with full rights of survivorship and not as tenants in common; and BUYERS in the event of death of any SELLER, agree to pay any balance of the price due SELLERS under this contract to the surviving SELLERS and to accept a deed from the surviving SELLERS consistent with Paragraph 15. 13. JOINDER BY SELLER'S SPOUSE. SELLER'S spouse, if not a title holder immediately preceding acceptance, executes this Agreement only for the purpose of relinquishing all rights of dower, homestead and distributive share or in compliance with Section 561.13 of the Code of Iowa and agrees to execute the deed or real estate contract for this purpose. 14. STATEMENT AS TO LIENS. If Buyers intend to assume or take subject to a lien on the Property, SELLERS shall furnish BUYERS with a written statement prior to closing from the holder of such lien, showing the correct balance due. 15. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be used to pay taxes and other liens and to acquire outstanding interests, if any, of others. 16. CONSENT BY HEIRS. The Property is an asset of the Estate of James P. Lammer. This Agreement is contingent upon Alison J. Prada, Executor of the James P. Lammer Estate, obtaining consents from the heirs of the estate to transfer the Property to the City of Dubuque as per this Agreement. If said consents to this Agreement are not so obtained by March 5, 2013 either party may declare this Agreement null and void, and any payments made hereunder shall be returned to BUYERS. 17. REMEDIES OF THE PARTIES. A. If BUYERS fail to timely perform this Agreement, SELLERS may forfeit it as provided in the Iowa Code (Chapter 656), and all payments made shall be forfeited; or, at SELLERS' option, upon thirty days written notice of intention to accelerate the payment of the entire balance because of BUYERS' default (during which thirty days the default is not corrected), SELLERS may declare the entire balance immediately due and payable. Thereafter this Agreement may be foreclosed in equity and the Court may appoint a receiver. 4 B. If SELLERS fail to timely perform this Agreement, BUYERS have the right to have all payments made returned to them. C. BUYERS and SELLERS are also entitled to utilize any and all other remedies or actions at law or in equity available to them, and the prevailing parties shall be entitled to obtain judgment for costs and attorney fees. 18. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is delivered by personal delivery or mailed by certified mail, addressed to the parties at the addresses given below. 19.GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of the essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors in interest of the parties. This Agreement shall survive the closing. This Agreement contains the entire agreement of the parties and shall not be amended except by a written instrument duly signed by SELLERS and BUYERS. Paragraph headings are for convenience of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender according to the context. 20. NO REAL ESTATE AGENT OR BROKER. Neither party has used the service of a real estate agent or broker in connection with this transaction. 21. CERTIFICATION. Buyers and Sellers each certify that they are not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and are not engaged in this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Each party hereby agrees to defend, indemnify and hold harmless the other party from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees and costs) arising from or related to my breach of the foregoing certification. 22. INSPECTION OF PRIVATE SEWAGE DISPOSAL SYSTEM. Seller represents and warrants to Buyer that the Property is not served by a private sewage disposal system, and there are no known private sewage disposal systems on the property. 23.ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not accepted and delivered to BUYERS on or before March 5 2013 at 5:00 p.m., this Agreement shall be null and void and all payments made shall be returned immediately to BUYERS. 5 24. OTHER PROVISIONS. This Agreement is subject to the approval of the City of Dubuque City Council. P eG Accepted : fjatch 20 , 2013 SELLERS ESTATE OF JAMES P. LAMMER EIN 45- 6888173 Ath- y: Alison . rada, Executor do Roth Law Office PC 1400 University Avenue, Suite D Dubuque IA 52001 Telephone: 563 - 557 -1611 Dated: March 0 , 2013 BUYERS. CITY OF DUBUQUE EIN: 42- 6004596 By: ichael C. n Milligen City Manager 50 W. 13th Street Dubuque, IA 52001 Telephone: 563 - 589 -4110 6 NovusAGENDA - Home THE CITY OF DtJB Masterpiece on the Mississippi Page 1 of 2 Loaout TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager DATE: July 31, 2012 SUBJECT: 735 Caledonia Place Donation Request Dubuque nerica 1 1 2007 INTRODUCTION The purpose of this memo is to request consideration of the donation of 735 Caledonia Place as an addition to Hilltop Park. BACKGROUND I was contacted by Mark Ludescher of the Fire Department regarding this property. He had been working with Allison Prada whom was appointed as Executor of the Estate. The house had caught fire and her father Robert J. Lammers died in the fire. As you will see from the attachments this property is located off an alley. It has an address of Caledonia Place but has no street frontage. In speaking with Kyle Kritz he sait it is zoned R2A and after the house is demolished the lot could be sold to have another house constructed on it. Allison Prada came forward with a request for the city to consider accepting the property "as is" for expanding Hilltop Park. She requested conserving the trees and plants as possible and a flag pole with an American flag. I worked with the Engineering Department staff to obtain estimates for demolition and disposal of the burned structure. Estimates were around $17,000 for demolition, disconnects of utilities, landfill fees, permits, backfill, seeding and filing fees. The Park Division can remove the vegetation necessary to accomplish demolition. I worked with Mike Buelow of MB Environmental on the environmental issues related to demolition and disposal of a half burned home. DISCUSSION The lot is 57 x 123 or .16 acres. The property was assessed at $29,500 prior to the fire. The lot abutts Hilltop Park to the north. As you can see from the photos and topographic aerial the property sits on the hill beside the park. This lot is very visible from Hill and 5th Streets. It would give better visibiity to the park. The addition of this lot would allow the playground to be moved to a location that would be handicap accessible at the time the play unit will be replaced. The hilltop location will be a beautiful location for a flag pole as well. I have identified CIF' 102 -2299 - Install Electricitay on 5 Pole Sheds as the funding source for demolition and restoration work in the amount of $17,093. Jenny Larson has approved this source as http: / /agenda.novus. cityofdubuque. org/ ItemDetails /ClientApprova1Sheet.aspx ?ItemID =1292 2/18/2013 NovusAGENDA - Home Page 2 of 2 appropriate for the project. These funds were left after completing the electrical improvements to the five sheds. RECOMMENDATION I respectfully recommend acceptance of the as is" donation of 735 Caledonia Place from the Robert Lammers estate as an addition to Hilltop Park. Prepared by: MLW:et cc: Gus Psyhoyos Crenna Brumwell Jenny Larson Mark Ludescher Janet Walker, Acting Housing Director {0.4 NoVUSoItutiOins Copyright 2001 -2013 http: // agenda. novus. cityofdubuque. org/ ItemDetails/ ClientApprovalSheet.aspx ?ItemID =1292 2/18/2013 Masterpiece on the Mississippi Dubuque * * * ** A114merlca CBy 1111 if 2012 TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Request to Accept Donation of 735 Caledonia Place Estate Name Correction DATE: August 6, 2012 INTRODUCTION The purpose of this memorandum is to inform of an incorrect estate name used in memos related to this City Council meeting action item for the August 6, 2012 Council meeting. DISCUSSION I incorrectly listed the name of the estate in the memo to the City Council and thus it was repeated in the City Manager's memo. I listed the name of the estate as the Robert Lammers Estate. The correct name of the estate is the James P. Lammer estate. The correct name of the estate is listed in the letter from the Executor of the estate Alison J. Prada. I regret this error. ACTION REQUESTED This memo is for informational purposes. Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: 735 Caledonia Place Donation Request DATE: August 1, 2012 Dubuque 2012 Leisure Services Manager Marie Ware recommends City Council approval to accept the "as is" donation of 735 Caledonia Place from the Robert Lammers Estate, which will be used as an addition to Hilltop Park. The house at this address was damaged by fire. The City will demolish the house, which will allow the playground at Hilltop Park to be moved to a location that would be handicap accessible. concur with the recommendation and respectfully request Mayor and City Council approval. ,(ie/t44 vwy Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Marie L. Ware, Leisure Services Manager 2791 Oak Crest Drive Dubuque, Iowa 52001 May 4, 2012 Michael C. Van Milligen, City Manager 50 West 13th Street Second Floor Dubuque, Iowa 52001 Re: 735 Caledonia Place, Dubuque, Iowa 52001 I`Ir. Michael C. Van Milligen and members of the Dubuque City Council: James P. Lammer died in a fire at his residence on larch 19, 2012. The structure sustained significant damage and is presently in need of demolition. As the executor of his estate, I hereby offer this property, located at 735 Caledonia Place, to the city of Dubuque as a gift. The property is offered as is" for the purpose of expanding the existing Hilltop Park adjacent to the property. I ask that you conserve the living plants and trees as much as possible and that an American flag be displayed on a flag pole to honor all nien and women of service, military and public, including my father, James P. Lammer, and the firefighters who assisted at the scene. Thank you for your consideration. Respectfully, Alison J. Prada HILLTOP PARK 735 CALEDONIA PLACE 4 -19 -12