Purchase of Property at 1721 Elm Street
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MEMORANDUM
August 31, 2006
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 a City-
owned Parking Lot for the Community Health Center
Housing and Community Development Director David Harris is recommending that the
City Council establish the fair market value of the property at 1721 Elm Street at
$48,000 for acquisition of the property to build a public parking lot that will primarily
serve the Community Health Center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and community Development Department Director
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Michael C. Van Milligen <. ( Jtr)
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MEMORANDUM
31 August 06
To: Michael Van Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Establishing the Fair market Value of a Property to be Acquired for a City-
owned Parking Lot for the Community Health Center
Introduction
The purpose of this memorandum is to request the City Council to establish the
fair market value of a property located at 1721 Elm Street, for purposes of
acquisition of the property for a public parking lot that will primarily serve the
Tri-State Community Health Center.
Discussion
The Housing and Community Development Department has offered to purchase
the single family home located on Elm Street from Troy Hansen, the owner and
occupant. The offer was made on 31 July 06. This is one of four houses
identified for purchase and removal, for creation of a public parking lot. Owners
of three of the properties have accepted the City's offers. We plan to move or
demolish these homes as quickly as possible, in order to construct the parking lot
and facilitate the opening of the Health Center, now scheduled for October.
The Housing Department commissioned an appraisal, by Rally Appraisal LLC.
The appraised value was established at $48 000. As we have not reached an
agreement with Mr Hansen 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 property at 1721 Elm Street.
cc:
Barry Lindahl, City Attorney
Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563583-4113
Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563583-4113
RESOLUTION NO. - 06
ESTABLISHING THE FAIR MARKET VALUE OF REAL PROPERTY OWNED BY
TROY HANSEN LOCATED AT 1721 ELM STREET IN THE CITY OF DUBUQUE
WHEREAS, the City of Dubuque (City) intends to acquire real property owned by
Troy Hansen (Hansen) legally described as:
South Y. of Lot 158 in East Dubuque Addition (the Property)
for purposes of a public parking lot for a community health center;
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 City has established for the property; and
WHEREAS, City has caused an appraisal of the Property to be made and the
appraised value of the Property is Forty-Eight Thousand Dollars ($48,000); 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 Forty-Eight Thousand Dollars
($48,000).
Section 2. The City Manager and the City Attorney are hereby authorized to
commence negotiations with Hansen for purchase of the Property at a price not less
than the fair market value established by this resolution.
Passed, adopted and approved this day of September, 2006.
Roy D. Buol, Mayor
Attest:
Jeanne Schneider, CMC
City Clerk