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Property Acquisition_2424 Washington StreetTHE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of 2424 Washington Street, Dubuque, Iowa DATE: June 25, 2013 Dubuque kital All- America City II 111! 2012 Assistant City Attorney Maureen Quann is recommending City Council approval of the Resolution approving the Offer To Buy Real Estate and Acceptance for property located at 2424 Washington Street, Dubuque, Iowa, owned by Gene Miller in the amount of $65,000. I concur with the recommendation and respectfully request Mayor and City Council approval. btitt44 kr,„709,,, Michael C. Van Milligen MCVM:sv Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Maureen Quann, Assistant City Attorney THE CITY OF DUBJE MEMORANDUM Masterpiece on the Mississippi MAUREEN A. QUANN, ESQ. ASSISTANT CITY ATTORNEY To: Michael C. Van Milligen City Manager U.iv�oe� DATE: June 25, 2013 RE: Purchase of 2424 Washington Street, Dubuque, Iowa INTRODUCTION This memorandum presents for City Council consideration a resolution approving the Offer To Buy Real Estate And Acceptance (the Offer) for a property located at 2424 Washington Street, Dubuque, Iowa (the Property). The proposed Offer allows the City to acquire the above - referenced property for possible future expansion of the Bee Branch Creek Project area. BACKGROUND Gene Miller, owner of the Property voluntarily approached the City in March, 2013 and proposed to sell the Property to the City for sixty -five thousand dollars ($65,000.00). The Property is located outside of but adjacent to the designated Bee Branch area. DISCUSSION Although the Property is not currently located within the Bee Branch area, it is adjacent to the project boundaries. Acquisition of the property will be beneficial to the City if the Bee Branch someday expands or if Comiskey Park ever expands. Because Mr. Miller voluntarily approached the City and offered to sell the Property, and because the Property is not currently part of or needed for the completion of the Bee Branch, relocation benefits are not required. Instead, the Property may be acquired for the asking price, which is four thousand dollars ($4,000.00) below the property's appraised value. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001 -6944 TELEPHONE (563) 589 -4381 / FAx (563) 583 -1040 / EMAIL mquann @cityofdubuque.org Mr. Miller has coordinated the proposed acquisition with the City so that all tenants residing in the Property would vacate in June, 2013, and the property will be ready for possession immediately thereafter. The tenants were provided with more than two (2) months notice of the proposed acquisition so the transition would be gradual. RECOMMENDATION Enclosed are the Offer signed by Mr. Miller, the Acknowledgment of Voluntary Negotiation and Purchase of Property Affidavit, and the proposed Resolution approving the Offer. I recommend that the City Council adopt the attached Resolution approving the Offer and authorizing acceptance of the Warranty Deed and any other related steps necessary to carry out the terms of the Offer. Budget Director Jennifer Larson has indicated that funds are available in Police Iowa Court fines to cover the purchase. Enclosures cc: Jenny Larson, Budget Director Gus Psihoyos, City Engineer Deron Muehring, Civil Engineer OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001 -6944 TELEPHONE (563) 589 -4381 / FAX (563) 583 -1040 / EMAIL mquann @cityofdubuque.org RESOLUTION NO. 195-13 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY GENE MILLER IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain property located immediately adjacent to the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 "Drainage Basin Master Plan;" and Whereas, this certain property is not currently part of or located within the Bee Branch Creek Restoration Project; and Whereas, the owner of this certain property approached the City of Dubuque voluntarily and proposed that the City of Dubuque acquire the property for possible future addition to, but not currently as part of the Bee Branch Creek Restoration Project; and Whereas, the acquisition of this property is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, a purchase agreement has been finalized with the owner of the property scheduled for acquisition and an Acknowledgment of Voluntary Negotiation and Purchase of Property Affidavit has been executed by the owner. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa hereby approves the acquisition of the following legally described property: The South half of lot 21 in O.S. Langworthy's Subdivision of Tots 192, 193, 194 and 195 in L.H. Langworthy's Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof . At the cost of Sixty -Five Thousand and 00/100 Dollars ($65,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Section 4. 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 1=s t day of July , 2013 x_va4„, Roy D. Mayor Attest: Kevin Firnstahl, City Clem OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Gene Miller, Seller: SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: The South half of lot 21 in O.S. Langworthy's Subdivision of lots 192, 193, 194 and 195 in L.H. Langworthy's Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof legal description to be confirmed per continued abstract per Section 9, with any easements and appurtenant servient estates, but subject to the following: a) any zoning and other ordinances; b) any covenants of record; c) any easements of record for public utilities, roads and highways. SECTION 2. PRICE. The purchase price shall be $65,000.00, payable in cash at the Closing. SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable for fiscal year 2012 -2013 and prior years. Seller shall also pay real estate taxes for fiscal year 2013 -2014 prorated through the date of closing. Buyer shall pay all subsequent real estate taxes after the date of closing. SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments, if any, which are a lien as of the date of closing, prorated to the date of closing. SECTION 5. RISK OF LOSS AND INSURANCE. Sellers shall bear the risk of Toss or damage to the Real Estate prior to closing or possession, whichever first occurs. Sellers agree to maintain existing insurance and Buyer may purchase additional insurance. In the event of substantial damage or destruction prior to closing, this Agreement shall be null and void; provided, however, Buyer shall have the option to complete the closing and receive insurance proceeds regardless of the extent of damages. The Real Estate shall be deemed substantially damaged or destroyed if it cannot be restored to its present condition on or before the closing date. SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its present condition and delivered intact at the time possession is delivered to Buyer, provided, however, if there is loss or destruction of all or any part of the Real Estate from causes covered by the insurance maintained by Seller, Buyer agrees to accept such damaged or destroyed Real Estate together with such insurance proceeds in lieu of the Real Estate in its present condition and Seller shall not be required to repair or replace same. SECTION 7. POSSESSION. If Buyer timely performs all obligations, possession of the Real Estate shall be delivered to Buyer on July 2, 2013, or such earlier date as the parties 06122013maq may agree in writing, with any adjustments of rent, insurance, and interest to be made as of the date of transfer of possession. SECTION 8. FIXTURES. All property that integrally belongs to or is part of the buildings on the Real Estate, whether attached or detached, such as Tight fixtures, shades, rods, blinds, awnings, windows, storm doors, screens, plumbing fixtures, water heaters, water softeners, automatic heating equipment, wall to wall carpeting, built -in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of Real Estate and included in the sale, EXCEPT SELLER may keep and remove from the Real Estate the air conditioner, the washer and dryer and the kitchen appliances. SECTION 9. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an abstract of title to the Real Estate continued through the date of acceptance of this offer, and deliver it to Buyer for examination. It 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 Buyer when the purchase price is paid in full. Seller shall pay the costs of any additional abstracting and title work due to any act or omission of Seller, including transfers by or the death of Seller or its assignees. SECTION 10. DEED. Upon payment of the purchase price, Seller shall convey the Real Estate to Buyer, by Warranty Deed, free and clear of all liens, restrictions, and encumbrances except as provided in 1(a). through 1(c). Any general warranties of title shall extend only to the time of acceptance of this offer, with special warranties as to acts of Seller continuing up to time of delivery of the deed. SECTION 11. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 12. REMEDIES OF THE PARTIES 12.1 If Buyer fails 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 thirty days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty 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. 12.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to it. 12.3 Buyer 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. 2 SECTION 13. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. SECTION 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. SECTION 15. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before June 30, 2013 it shall become void and all payments shall be repaid to the Buyer. SECTION 17. OTHER PROVISIONS. 17.1 The Offer is subject to final approval of the City Council of the City of Dubuque, Iowa in its sole discretion. If the City Council of the City of Dubuque, Iowa does not approve this Offer, it shall become automatically void and neither party shall be bound by the terms and conditions set forth herein. 17.2 After execution of this Offer by Seller and Buyer and final approval .of the City Council of the City of Dubuque, Iowa, Buyer shall deliver a copy of the executed Offer to Buy Real Estate and Acceptance executed by Michael C. Van Milligen, City Manager, along with a copy of the Resolution of the City Council authorizing the purchase of this Real Estate. 17.3 Buyer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Real Estate and all parts thereof, upon reasonable notice to Seller for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other work as Buyer shall consider appropriate, provided that Buyer shall hold Seller harmless and fully indemnify Seller against any damage, claim, liability or cause of action arising from or caused by the actions of Buyer, its agents, or representatives upon the Real Estate or the Donated Real Estate (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Real Estate), and shall have the further right to make such inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as Buyer considers appropriate. 17.4 Seller warrants that the rights of all tenants shall be terminated by Seller prior to closing and that there will be no tenants whose rights in the Real Estate survive the closing. This covenant shall survive the closing. 17.5 Until ten (10) days prior to closing, Buyer shall have the right to terminate this agreement if environmental issues exist on the Real Estate that Buyer determines in its sole discretion do not permit Buyer to use the Real Estate for its intended use. Prior to terminating this Agreement pursuant to this section, Buyer shall offer Seller the opportunity to remediate the Real Estate to the satisfaction of Buyer in its sole discretion and at Seller's sole cost. 3 17.6 The Real Estate is sold /purchased "as is" and "with all faults ". Dated: z CITY OF DUBUQUE, IOWA By: Michae C. Van i igen City Manager 4 THIS OFFER IS ACCEPTED Dated: i ,2 �v N Q (9:a` By: Gene Miller ACKNOWLEDGMENT OF VOLUNTARY NEGOTIATION AND PURCHASE OF PROPERTY Project: Bee Branch Restoration and Gateway Project Parcel No.: 1013451012 As owner(s) of real estate needed for the above referenced project and parcel, (I) (We) acknowledge this is a voluntarily negotiated purchase by the City of Dubuque, Iowa under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque, Iowa through an exercise of the power of eminent domain under Chapter 6B of the Code of Iowa. This voluntarily negotiated sale to the City of Dubuque, Iowa was made without any coercive action of any nature. C)..reA° Seller 0 1; Date —/ Seller Date SHARON L. MEYER h Commission Number 740617 I' ,owe ;�y Gornra. U dal') l Public in and for Dubuc( Coun Notary q County, Iowa iIImIIIIIINIIIIIIIIIIuuiNIIIIIIIuIIIIIIIuIIIIIIIIIImIIIIm Doc ID 007740100002 Type GWH Kind GROUNDWATER HAZARD Recorded: 07/10/2013 at 10:26:04 AM Fee Amt: $0.00 Page 1 of 2 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2013- 00001160 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name Gene W. Miller Address 14208 Stagecoach Lane Durango Iowa 52039 Number and Street or RR City, Town or P.O. State Zip TRANSFEREE: Name City of Dubuque, Iowa Address 50 West 13th Street Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip Address of Property Transferred: 2424 Washington Street Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip Legal Description of Property: (Attach if necessary) The South 1/2 of Lot 21 in O. S. Langworthy's Subdivision of Lots 192, 193, 194 and 195 in L. H. Langworthy's Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof 1. Wells (check one) X There are no known wells situated on this property. _ There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below or set forth on an attached separate sheet, as necessary. 2. Solid Waste Disposal (check one) X There is no known solid waste disposal site on this property. _ There is a solid waste disposal site on this property and information related thereto is provided in Attachment #1, attached to this document. 3. Hazardous Wastes (check one) X There is no known hazardous waste on this property. _ There is hazardous waste on this property and information related thereto is provided in Attachment #1, attached to this document. 4. Underground Storage Tanks (check one) X There are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) _ There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are listed below or on an attached separate sheet, as necessary. FILE WITH RECORDER DNR form 542 -0960 (July 18, 2012) 5. Private Burial Site (check one) X There are no known private burial sites on this property. _ There is a private burial site on this property. The location(s) of the site(s) and known identifying information of the decedent(s) is stated below or on an attached separate sheet, as necessary. 6. Private Sewage Disposal System (check one) X All buildings on this property are served by a public or semi - public sewage disposal system. _ This transaction does not involve the transfer of any building which has or is required by law to have a sewage disposal system. There is a building served by private sewage disposal system on this property or a building without any lawful sewage disposal system. A certified inspector's report is attached which documents the condition of the private sewage disposal system and whether any modifications are required to conform to standards adopted by the Department of Natural Resources. A certified inspection report must be accompanied by this form when recording. There is a building served by private sewage disposal system on this property. Weather or other temporary physical conditions prevent the certified inspection of the private sewage disposal system from being conducted. The buyer has executed a binding acknowledgment with the county board of health to conduct a certified inspection of the private sewage disposal system at the earliest practicable time and to be responsible for any required modifications to the private sewage disposal system as identified by the certified inspection. A copy of the binding acknowledgment is attached to this form. _ There is a building served by private sewage disposal system on this property. The buyer has executed a binding acknowledgment with the county board of health to install a new private sewage disposal system on this property within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9] _ This property is exempt from the private sewage disposal inspection requirements pursuant to the following exemption [Note: for exemption #9 use prior check box]: The private sewage disposal system has been installed within the past two years pursuant to permit number Information required by statements checked above should be provided here or on separate sheets attached hereto: I HEREBY DECLARE THAT I HAVE REVIEWED THE INSTRUCTIONS FOR THIS FORM AND THAT THE INFORMATION STATED ABOVE IS TRUE AND CORRECT. Signature: (Trans ror or Agent) FILE WITH RECORDER Telephone No.: (O ti16-61 DNR form 542 -0960 (July 18, 2012) IIIIItlYVIIIpIIIIIIIVII01I1111IIIIIII111I1111MII Doc ID 007740090004 Type GEN Kind DEED WITH RESOLUTION Recorded: 07/10/2013 at 10:25:30 AM Fee Amt: $130.20 Page 1 of 4 Revenue Tax: $103.20 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2013- 00011494 ©THE IOWA STATE BAR ASSOCIATION I Official Form No. 101 - May 2006 Maureen A. Quann I FOR THE LEGAL EFFECT OF THE USE OF THIS FORM, CONSULT YOUR LAWYER Return To: Maureen A. Quann Suite 330, 300 Main Street, Dubuque, Iowa 52001 (563) 589.4381 Preparer: Maureen A. Quann Suite 330, 300 Main Street, Dubuque, Iowa 52001 (563) 589.4381 Taxpayer:_City of Dubuque, Iowa 50 West 13th Street Dubuque, Iowa 52001 sTAT4, R � WARRANTY DEED For the consideration of one Dollar(s) and other valuable consideration, Gene W. Miller, a single person do hereby Convey to the City of Dubuque, Iowa the following described real estate in Dubuque County, Iowa: The South Y2 of Langworthy's Grantors estate by title in fee real estate is free Covenant to Warrant stated. Each of the to the real estate. singular or plural Lot 21 in O. S. Langworthy's Subdivision of Lots 192, 193, 194 and 195 in L. H. Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof do Hereby Covenant with grantees, and successors in interest, that grantors hold the real simple; that they have good and lawful authority to sell and Convey the real estate; that the and clear of all liens and encumbrances except as may be above stated; and grantors and Defend the real estate against the lawful claims of all persons except as may be above undersigned hereby relinquishes all rights of dower, homestead and distributive share in and Words and phrases herein, including acknowledgment hereof, shall be construed as in the number, and as masculine or feminine gender, according to the context. C� Dated: c9 (/ v/3 Gene W. Miller (Grantor) (Grantor) STATE OF IOWA , COUNTY OF Dubuque This instrument was acknowledged before me on j U2, 20 i 3 , by Gene W. Miller, a single person /I, t_ o.T :,, ,,,,„ MAUREEN A. QUANN Commission Num er7694�1 My Comm. Exp. ?) . 4 , Notary Public (This form of acknowledgment for individual grantor(s) only) g0 RESOLUTION NO.195.13 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY GENE MILLER IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain property located immediately adjacent to the area of the Bee Branch Creek Restoration Project for stormwater mitigation activities as recommended in the 2001 "Drainage Basin Master Plan;" and Whereas, this certain property is not currently part of or located within the Bee Branch Creek Restoration Project; and Whereas, the owner of this certain property approached the City of Dubuque voluntarily and proposed that the City of Dubuque acquire the property for possible future addition to, but not currently as part of the Bee Branch Creek Restoration Project; and Whereas, the acquisition of this property is a voluntarily negotiated purchase by the City of Dubuque under Section 6B.1A of the Code of Iowa, and is not an acquisition by the City of Dubuque through its exercise of the power of eminent domain under Chapter 6B of the Code of Iowa; and Whereas, a purchase agreement has been finalized with the owner of the property scheduled for acquisition and an Acknowledgment of Voluntary Negotiation and Purchase of Property Affidavit has been executed by the owner. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa hereby approves the acquisition of the following legally described property: The South half of lot 21 in O.S. Langworthy's Subdivision of lots 192, 193, 194 and 195 in L.H. Lang worthy's Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof . At the cost of Sixty -Five Thousand and 00 /100 Dollars ($65,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3, That the City Clerk be and is hereby authorized and directed to cause said Warranty Deed to be recorded in the office of the Dubuque County Recorder, together with a certified copy of this Resolution. Section 4. 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. Attest: Passed, approved and adopted this s i t day of Jul y Kevin . Firnstahl, City Cler , 2013 Roy D. BSI; Mayor CERTIFICATE of the CITY CLERK STATE OF IOWA SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 195 -13 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 3rd day of July, 2013. Kevi S. Firnstahl, CMC �' i y Clerk