SW Arterial Project_ROW Property Acquistion Establishing Fair Market ValueMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
SUBJECT: Southwest Arterial Project Right -of -Way Property Acquisition
Parcel 184 and 187, Jon Luckstead
Establishing Fair Market Value and Authorizing Commencement of
Eminent Domain Proceedings, If Necessary
DATE: July 31, 2013
Assistant City Engineer Bob Schiesl recommends the City Council adopt a resolution
establishing and setting the Just Compensation Valuation (Fair Market Value) for two
parcels of property owned by Jon Luckstead to be acquired for the Southwest Arterial
Project based on the certified Acquisition Appraisal and Review Appraisal reports. The
resolution also authorizes staff to begin good faith negotiations with the property owner
and, if a settlement cannot be reached through good faith negotiations, authorizes staff
to proceed with eminent domain proceedings for the acquisition of the property for the
Southwest Arterial Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
dtie P':Aititaiy-
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
Robert Schiesl, Assistant City Engineer
Masterpiece on the Mississippi
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Gus Psihoyos, City Engineer
Robert Schiesl, Assistant City Engineer
Dubuque
bitell
All- America City
1 I
2007 • 2012 • 2013
Southwest Arterial Project Right -of -Way Property Acquisition
Parcel 184 and 187, Jon Luckstead
Establishing Fair Market Value and authorizing commencement of
eminent domain proceedings, if necessary
DATE: July 31, 2013
INTRODUCTION
The purpose of this memorandum is to provide the City Council with information
regarding the appraised value of necessary right -of -way property and the City's intent to
acquire or condemn if necessary said property for the Southwest Arterial Project.
BACKGROUND
By previous public hearing action, the City Council has approved the development and
advancement of the Southwest Arterial Project and made final site selections for the
location and alignment of the project. The next step is to proceed with the process of
acquisition of those identified impacted properties through good faith negotiations and
eminent domain, if negotiations are unsuccessful.
PROPERTY ACQUISITION STATUS
The City and the Iowa DOT property acquisition staff are currently proceeding with right -
of -way property acquisition for the 45 impacted properties identified. As of July 2013,
the City has purchased 25 properties and has expended approximately $5.89 million in
right -of -way property acquisition costs.
Another 2 properties are ready to begin the acquisition process now that the acquisition
appraisal updates have been completed. The next step is for the City Council to formally
determine the fair market values of the properties so the procedural requirements are
met in the event that good faith negotiations fail and condemnation / eminent domain
proceedings are initiated. Those properties are identified as follows:
Parcel I.D.
Number
Property Owner
184
Jon Luckstead
187
Jon Luckstead
The attached aerial photo corridor maps provide additional detail and color coding which
delineates those properties that have been purchased and those properties that remain
to be purchased.
CERTIFIED APPRAISAL PROCESS
On April 6, 2009, the City Council approved the selection of Iowa Appraisal and
Research Corporation and Peoples Company of Iowa to provide real estate property
Appraisal Services for the acquisition of right -of -way for the Southwest Arterial project.
Per Federal Code, the City is required to have two (2) independent appraisal valuations
for each property to be acquired. Iowa Appraisal and Research Corporation is
responsible for completing independent Acquisition Appraisal services. Separately,
Peoples Company of Iowa is responsible for completing independent Review Appraisal
services. Both appraisal firms are on the Iowa DOT's list of pre - qualified certified
appraisers.
Both the Acquisition and Review appraisal agents are responsible for preparing,
signing, and furnishing to the City a separate, written acquisition appraisal report for
each property to be acquired following generally accepted standards of professional
appraisal principles and techniques in accordance and compliance with the following:
• State of Iowa law.
• Iowa Department of Transportation's "Appraisal Policy & Procedures Manual ".
• Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 as amended, in accordance with Part 24 of Title 49 of the Code of Federal
Regulations.
• Jurisdictional Exception Rule and Supplemental Standards contained in the
Uniform Standards of Professional Appraisal Practice (USPAP).
• Completed in a manner consistent with the appraisal assignment as specified in
the Iowa Department of Transportation's "Appraisal Operational Manual"
• Appraisal firm, agent(s) or employee(s) shall have no vested interest, direct or
indirect, in the real property being appraised for acquisition.
JUST COMPENSATION VALUATION
Both Iowa Appraisal and Research Corporation and Peoples Company of Iowa have
completed their appraisal reports and established the certified Just Compensation
Valuation (Fair Market Value) for each property to be acquired. Those properties are
identified as follows:
Parcel I.D.
Number
Property Owner
Land Type
Just Compensation
Value
184
Jon Luckstead
M -1, Industrial
$ 36,900.00
187
Jon Luckstead
M -1, Industrial
$ 217,954.00
RECOMMENDATION
I recommend that the City Council establish the Just Compensation Valuation (Fair
Market Value) for each identified property to be the values as set out above, based on
the certified Acquisition Appraisal and Review Appraisal reports. I also recommend that
the City Council authorize staff to begin good faith negotiations with each identified
property owner and if a settlement cannot be reached through good faith negotiations,
commence eminent domain proceedings.
UPDATED COST ESTIMATE
Due to the time that has elapsed since the initial "2009" cost estimate was developed,
the City feels that it is necessary to update the cost estimate based on current market
conditions, inflationary costs and the increased cost in agricultural land values. The
updated estimate of probable cost for the right -of -way property acquisition is as follows:
Description
Estimated Cost
Right -of -Way Property Acquisition:
$ 5,724,601
Property Acquisition Appraisal Services:
147,645
Property Management:
19,373
Total Expenditure To -Date:
$ 5 891 619
Remaining Property to Acquire Cost Estimate:
$ 7,114,452
Updated Property Acquisition Cost:
$ 13,006,071
Based on current market conditions, inflationary costs and the increased cost in
agricultural land values, the current estimate of probable cost has increased by
approximately $3.19 million.
Description
Estimated Cost
2013
- Updated Cost Estimate:
$ 13,006,071
2009
- Original Cost Estimate:
9,806,320
County - Local Funding (10 %)
Cost Increase - Property Acquisition:
$ 3,199,751
FUNDING SUMMARY
The anticipated project funding for the right -of -way property acquisition phase for the
Southwest Arterial project is as follows:
Fund Description
Fund Amount
American Recovery and Reinvestment Act Funding
$ 2,909,534
Federal SAFETEA -LU Funding (80 %)
8,077,230
City - Local Funding (10 %)
1,009,654
County - Local Funding (10 %)
1,009,654
Total Project Funding
$ 13,006,071
As part of the American Recovery and Reinvestment Act (ARRA), the City and County
have committed all of the local transportation funding, $2.9 million, for the purchase of
property for the Southwest Arterial. As of March 2011, the City expended all ARRA
stimulus funding.
ACTION TO BE TAKEN
The City Council is requested to adopt the attached resolution which establishes and
sets the Just Compensation Valuation (Fair Market Value) for each identified property to
be acquired based on the certified Acquisition Appraisal and Review Appraisal reports.
The resolution also authorizes staff to begin good faith negotiations with each identified
property owner and if a settlement cannot be reached through good faith negotiations,
authorizes staff to proceed with eminent domain proceedings for the acquisition of the
property for the Southwest Arterial Project.
Prepared by Robert Schiesl, Assistant City Engineer
cc: Barry Lindahl, City Attorney
Doug Bates, Iowa DOT
Bob Lentz, AECOM
F: \PROJECTS \SOUTHWEST ARTERIAL \Property Acquisition Set Market Value \Parcel 184 & 187
Prepared by: Robert Schiesl, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270
Return to: Robert Schiesl, City Hall, 50 W 13th Street, Dubuque IA 52001 563 - 589 -4270
RESOLUTION NO. 262 -13
ESTABLISHING THE FAIR MARKET VALUE OF REAL PROPERTY FOR THE
SOUTHWEST ARTERIAL PROJECT, DIRECTING GOOD FAITH NEGOTIONS FOR
THE ACQUISITION OF PROPERTY AND AUTHORIZING THE COMMENCEMENT OF
EMINENT DOMAIN PROCEEDINGS, IF NECESSARY, TO ACQUIRE PROPERTY
WHEREAS, the City of Dubuque (City) has caused to be made appraisals of the
properties described below for the Southwest Arterial Project and the appraised values
for the properties are listed below; and
WHEREAS, the legal description of each of the properties to be acquired, the
owners and the appraised value of each of the properties is listed below; and
WHEREAS, the City Council has previously conducted a public hearing on the
approval of and the site location for the Southwest Arterial Project, approved the project
and the acquisition of all or a part of the property listed below for. the Southwest Arterial
Project:
PROPERTY
OWNER(S)
APPRAISED
VALUE
Part of Parcel 184 as described on Exhibit A attached
Jon Luckstead
$ 36,900.00
Part of Parcel 187 as described on Exhibit B attached
Jon Luckstead
$217,954.00
and;
WHEREAS, Iowa law requires that the City make a good faith effort to negotiate
with the owners regarding the purchase before proceeding with condemnation; and
WHEREAS, the City may not make an offer to purchase a property which is Tess
than the fair market value City has established for the property; and
WHEREAS, the City Council now desires to establish the fair market value for
each of the properties; and
WHEREAS, the City wishes to acquire the properties listed for the Southwest
Arterial Project by negotiation or eminent domain proceedings, if necessary.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA AS FOLLOWS:
Section 1. The fair market value of each of the properties listed above is hereby
established to be the amount of its appraised value as listed above.
Section 2. The City Manager is directed to enter into good faith negotiations for the
acquisition for each of the above properties, and, if necessary, commence eminent domain
proceedings to acquire the properties.
Passed, approved and adopted this 5th day of August, 2013.
Roy Buol, Mayor
Attest:
Trish L. Gleason, Assistant City Clerk
F: \PROJECTS \SOUTHWEST ARTERIAL \Property Acquisition Set Market Value \Parcel 184 & 187
EXHIBIT A
DESCRIPTION: FEE TITLE ACQUISITION
PROJECT PARCEL NO. 184
COUNTY PARCEL NO. 1514401004
A PARCEL OF LAND SITUATED IN PART OF LOT C AND PART OF SILVERWOOD DRIVE IN
TAMARACK S.E. FOURTH SUBDIVISION OF SECTION 14, TOWNSHIP 88 NORTH, RANGE 2 EAST
OF THE 5TH P. M., COUNTY OF DUBUQUE, STATE OF IOWA, MORE PARTICULARLY DESCRIBED
AS FOLLOWS:
COMMENCING AT THE CENTER OF SAID SECTION 14, ALSO BEING THE NORTHWEST CORNER
OF SAID LOT C; THENCE NORTH 87° (DEGREES) 38' (MINUTES) 38" (SECONDS) EAST (ASSUMED
BEARING FOR THE PURPOSE OF THIS DESCRIPTION) ON THE NORTH LINE OF SAID LOT C,
1,333.88 FEET TO THE EASTERLY LINE OF SAID LOT C; THENCE SOUTH 02 °04'08" EAST, 840.25
FEET TO THE POINT OF BEGINNING OF THE PARCEL HEREIN DESCRIBED; THENCE SOUTH
57 °47'45" EAST ON A NORTHEASTERLY LINE OF SAID LOT C, 262.28 FEET; THENCE SOUTH
86 °14'56" WEST, 107.88 FEET TO THE PRESENT NORTHEASTERLY RIGHT -OF -WAY LINE OF
SILVERWOOD DRIVE; THENCE SOUTH 60 °35'13" WEST, 66.00 FEET TO THE PRESENT
SOUTHWESTERLY RIGHT -OF -WAY LINE OF SILVERWOOD DRIVE; THENCE NORTHWESTERLY
ON THE PRESENT SOUTHWESTERLY RIGHT -OF -WAY LINE OF SILVERWOOD DRIVE, BEING A
167.00 -FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY AND HAVING A 98.22 -FOOT LONG
CHORD BEARING NORTH 46 °30'52" WEST, 99.69 FEET (ARC LENGTH); THENCE NORTH 26 °23'02"
EAST, 66.00 FEET TO THE PRESENT NORTHEASTERLY RIGHT -OF -WAY LINE OF SILVERWOOD
DRIVE; THENCE NORTH 63 °36'58" WEST ON THE PRESENT NORTHEASTERLY RIGHT -OF -WAY
LINE OF SILVERWOOD DRIVE, 36.84 FEET; THENCE NORTH 26 °38'29" EAST, 40.46 FEET TO THE
POINT OF BEGINNING.
FEE TITLE CONTAINING 17,897 SQUARE FEET OR 0.41 ACRE OF WHICH 7,880 SQUARE FEET OR
0.18 ACRE IS AN EXISTING PERMANENT EASEMENT FOR RIGHT -OF -WAY FOR SILVERWOOD
DRIVE.
TEMPORARY EASEMENT CONTAINING 31,364 SQUARE FEET OR 0.72 ACRE.
EXHIBIT B
DESCRIPTION: FEE TITLE ACQUISITION
PROJECT PARCEL NO. 187
COUNTY PARCEL NO. 1514426001
A PARCEL OF LAND SITUATED IN PART OF LOT 1 OF 2 OF THE SOUTHEAST 1/4 OF SECTION 14,
TOWNSHIP 88 NORTH, RANGE 2 EAST OF THE 5TH P. M., COUNTY OF DUBUQUE, STATE OF
IOWA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE EAST 1/4 CORNER OF SAID SECTION 14; THENCE SOUTH 87° (DEGREES)
30' (MINUTES) 08" (SECONDS) WEST (ASSUMED BEARING FOR THE PURPOSE OF THIS
DESCRIPTION) ON THE NORTH LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 14, A DISTANCE
OF 693.86 FEET TO THE POINT OF BEGINNING OF THE PARCEL HEREIN DESCRIBED; THENCE
SOUTH 44 °56'29" WEST, 35.03 FEET; THENCE SOUTH 28 °21'20" WEST, 300.00 FEET; THENCE
SOUTH 21 °13'50" WEST, 201.56 FEET; THENCE SOUTH 39 °39'56" WEST, 203.96 FEET; THENCE
SOUTH 05 °33'44" WEST, 153.84 FEET; THENCE SOUTH 02 °18'18" EAST, 150.08 FEET; THENCE
SOUTH 07 °39'55" WEST, 71.31 FEET TO THE SOUTHWESTERLY LINE OF SAID LOT 1 OF 2;
THENCE NORTH 57 °47'45" WEST ON THE SOUTHWESTERLY LINE OF SAID LOT 1 OF 2, A
DISTANCE OF 262.28 FEET; THENCE NORTH 08 °17'51" EAST, 713.31 FEET; THENCE NORTH
44 °01'37" EAST, 202.81 FEET TO THE NORTH LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 14;
THENCE NORTH 87 °30'08" EAST ON SAID NORTH LINE, 367.18 FEET TO THE POINT OF
BEGINNING.
HEREINAFTER TO BE KNOWN AS LOT A OF LOT 1 OF 2 OF THE SOUTHEAST 1/4 OF SECTION 14,
TOWNSHIP 88 NORTH, RANGE 2 EAST OF THE 5TH P.M., COUNTY OF DUBUQUE, STATE OF
IOWA.
CONTAINING 277,119 SQUARE FEET OR 6.36 ACRES.
TEMPORARY EASEMENT CONTAINING 8,160 SQUARE FEET OR 0.19 ACRE.
For Side Road Details
Refer to Sheet No. E.06
C Southwest
ACCESS LOCATIONS
Sta. 20 +90 Jt & Lt
Sta. 22 +40 Jt & Rt
44 (Simon, Connie
PI Sta 29+56.72 =
N US 61 Connector Road "
PDT Ste 344 +97.76
Southwest Arterial
US 61 Connector Road "A"
Southbound Connector C
For Interchange Details
Refer to Sheets No. K.01 -K.05
552
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US 61 Connector '09• A
US 61 Ramp "A"
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CONFIDENTIAL
NOT FOR DISTRIBUTIO.
PARCEL ID - PROJECT ACQUISITION STATUS
101 Dubuque Metropolitan Area Solid Waste Agency 117 Broughton Investments, Bob 138 John J Oberbroeckling 151a John L Knegger =1 et Jon Luckstead
muck nahnerMig 122a Le, &Jeanette netteher Ito Pavia J Watters 152 William Km. =187 Jon Luckstead
• 107 Kim Safford 124 Sharon L Bra., Trust 141 Scoff Hos 161 Clem. Reuter 188a Dean & Nancy Herbst
• 1 0 8 Arthur & Karen Rokusek 1 2 5 Neztrop LLC 1 4 2 Dennis P Freiburger 1 6 9 River 0 0 0 1886 Dean & Nancy Herbst
• los Thomas & charlotte Pfeiffer 126 Porten 5011,1100 511110 LLC 144 William & Margaret Walser 169a River Ciry Development Group LLC 194 Tracy, WM D & Betty and Tracy, WM Craig &Pay
110 State of Iowa 1276 English Ridge LLC 147 Betty Jean Siegert-Tigges 170 Connie F Simon 195a O'Rourke Farms LLC
• 112 Plastic Center Inc 129 John & Carolyn HaUtlert las Dennis &Judy Watters 172 Mt Olivet Cemetery Assoc 1956 O'Rourke Farms LLC
• 113 Paul &Jayne Cate 130 Robert W Bradley Trust 149 Ronald & Gary Valentine 173 M ichael & Chris Lambert or, of Dubuque- FDR Park
• 114a William &Janet Siegert 13s J050 & Get,. Oberta&e.100 =150a Sa5, & m, B. Vale.. 174 o.a & srmey Lambert
1146 William &Janet Siegert 134 David &Joyce Peterson 150b Ronald &Marlene Valentine 175 Dennis & Susan Troester
115 M enard Inc 135 Rose M Thill 151 John LKnepper 176 Rod, &Janet F army
Purchased
Not Yet Purchased
Previously-obtained City/State/County Preps
\r■
Property Acquisition as of April 2013
Property Acquisition subject to change.
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PARCEL ID - PROJECT ACQUISITION STATUS
101. Dubuque Metropolitan Area Solid waste Agency- iii. Broughton Investments, Bob 138. John J Oberbroeckung - 151a. John LKnepper - 184. Jon Luckstead
104. Muck Partnership 122a. Le, &Jeanette Beticher - 140 . David J Wafters -152 William Km. - 187 . Jon Luckstead
107 . Mm Sanford 124. Sharon L Bradley Trust tat. Scoff Hos 101. Clement Reuter 188a. Dean &Nancy Herbst
toe. Arthur &Karen ROkusek 125 . NSnrop LLC - 142 Dennis P Frelburger - 109. River Clry Development Group LLC -1886. Dean &Nancy Herbst
109. Thomas &Charlotte Pfeiffer - 120. Porten Building Firm LLC -144. W W C S C V W U V V W C V
State of Iowa 1276. English Ridge LLC 1. Betty Jean Slegert -Trgges -1TB. Connie F Simon 19sa. O'Rourke Farms LLC
110 4T
. Plastic center Inc -129 John Haupert -148. Dennis &Judy Wafters 172 Mt Olivet cemetery Assoc - 1956. O'Rourke Farms LLC
113. Paul &Jayne Cate 130 . Robert W Bradley Trust 149. Ronald& Gary valentine -173. Michael & Chris Lambert Crty of Dubuque -FOR Park
114a William &JanetSlegert -133. John & Gertrude 06er6roecNln9 -15Ba. Gary &Mary Beth Galenttye- 174.Davld &ShffleyLam6ert
- 1,6. William &JanetSiegert - 13.David &JecePeterson -156. Ronald &Marlene Valentine - 175 Dennis & Susan Treester
- 115.MenardInc -135. Rose MThIII - 151. John nLKnepper - 176. Rod, &Janet Farm,'
1 Pur teased
NOt Yet PUrehased
PreVIOUSty-Obtalned City/State /County Prepe
METCAkF LN
Property Acquisition as of April 2013
Property Acquisition subject to change.