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Property Acquisition_516 Lincoln Avenue_MidAmericaTHE CITY OF Dui Masterpiece on the Mississippi Dubuque band AI -America City r 2007 • 2012 • 2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration Project, Property Acquisition, 516 Lincoln (CIP #7201654) DATE: July 1, 2014 City Engineer Gus Psihoyos is recommending acquisition of 516 Lincoln Avenue for $120,000 as part of the Bee Branch Creek Restoration Project. I concur with the recommendation and respectfully request Mayor and City Council approval. bd-144 c, Mic ael 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 THE CITY OF Dui E Masterpiece on the Mississippi Dubuque All-AmerIcallny 11111! 2007 • 2012 • 2013 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Bee Branch Creek Restoration Project, Property Acquisition, 516 Lincoln (CIP#7201654) DATE: June 30, 2014 INTRODUCTION The purpose of this memorandum is to seek authorization to acquire 516 Lincoln Avenue, Dubuque, Iowa (the Property) for the Bee Branch Creek Restoration Project. BACKGROUND With the adoption of Resolution 491-04 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, establishing the properties to be acquired for the Bee Branch Creek Restoration Project. With the adoption of Resolution 291-13 in September of 2013, the City Council amended the alignment through 430 Garfield and 506 Garfield Avenue. DISCUSSION The Upper Bee Branch Creek Restoration Project (Project) includes new bridges at Rhomberg Avenue and 22nd Street to carry traffic over the day -lighted creek. However, a bridge is not planned for Lincoln Avenue. As a result, thru traffic will be severed on Lincon Avenue at Kniest Street just south of Audubon Elementary School. To continue travel to and from Audubon Elementary School, a new roadway is required between Lincoln Avenue and Rhomberg Avenue. This new roadway, which will essentially be an extension of Lincoln Avenue, was originally proposed as a one-way street. However, vehicular and pedestrian traffic flow would be better served if the Lincoln Avenue extension was a two- way street. In order to provide the necessary right-of-way for a two-way street, the acquisition and removal of 516 Lincoln Avenue is required. Acquiring 516 Lincoln Avenue would also allow for the Lincoln Avenue extension to be farther away from the proposed Rhomberg Avenue Bridge resulting in better traffic sight lines. Acquiring the property also allows for sidewalks to be constructed on both sides of the roadway leading to safer conditions for pedestrians. 1 The Property is a single-family rental unit owned by Mr. James Reibling d/b/a Mid-America Property Management. Mr. Reibling and the City entered into voluntary negotiations. Mr. Reibling initially offered to sell the property for $135,000.00. In response, this City asked for, and he agreed, to having the property appraised. An appraisal was prepared by Mr. Bob Feldermann who provided a range of values from between $93,000.00 and $109,000.00 with an average value of $100,000.00. This information was shared with Mr. Reibling who subsequently dropped his asking price to $120,000.00. Based on the City's cost to acquire similar property, $120,000.00 is appropriate compensation for 516 Lincoln Avenue. RECOMMENDATION I recommend that the City purchase 516 Lincoln Avenue for $120,000.00 in order to secure the necessary right-of-way to construct a two-way street between Lincoln Avenue and Rhomberg Avenue, allow the street to be shifted farther away from the proposed Rhomberg Avenue Bridge, and allow the construction of sidewalks on both sides of the street. BUDGET IMPACT The acquisition will be funded through the FY2013 Capital Improvement Program Budget appropriation of $2,723,388 for Bee Branch Creek Restoration property acquisitions. ACTION STEP I respectfully request 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 for the purchase of 516 Lincoln Avenue. Attach. Prepared by Deron Muehring Cc: Barry Lindahl, City Attorney Maureen Quann, Assistant City Attorney Jenny Larson, Budget Director Deron Muehring, Civil Engineer 2 RESOLUTION NO. 192-14 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY JAMES REIBLING, D/B/A MID -AMERICA PROPERTY, LLC, IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate located immediately adjacent to the area of the Bee Branch Creek Restoration Project (Project) for stormwater mitigation activities as recommended in the 2001 "Drainage Basin Master Plan" as amended in 2013; and Whereas, this certain real estate is not currently part of or located within the Bee Branch Creek Restoration Project; and Whereas, the owners of this certain real estate 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, Lincoln Avenue will be closed to thru traffic as a result of the Project necessitating the construction of a new connection between Lincoln Avenue and Rhomberg Avenue (Lincoln Ave Extension) to allow vehicular and pedestrian traffic to and from Audubon Elementary School; and Whereas, the property originally identified to be acquired to allow for the Lincoln Avenue Extension would only allow for a one-way street in close proximity to the proposed Rhomberg Avenue Bridge; and Whereas, purchasing this certain real estate will allow for the Lincoln Avenue Extension to accommodate two-way traffic and be farther away from the proposed Rhomberg Avenue Bridge resulting in traffic better sight lines; and Whereas, the acquisition of this real estate 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 real estate scheduled for acquisition and an Acknowledgment of Voluntary Negotiation 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 real estate: LOT 10 in High Street Subdivision and the vacated portion of Troy Street abutting said Lot 10 all in the City of Dubuque, Iowa at the cost of One Hundred Twenty Thousand and 00/100 Dollars ($120,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owners, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Attorney 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 Attorney 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 7th day of July, 2014. Attest: Kevin S Firnstahl, ity Roy D. Bu lI, Mayor OFFER TO BUY REAL ESTATE AND ACCEPTANCE TO: Mid-America Property Management, LLC, Seller: SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer) offers to buy real estate in Dubuque County, Iowa, described as follows: Lot 10 in High Street Subdivision in the City of Dubuque, Iowa, according to the recorded Plat thereof, and the vacated portion of Troy Street abutting said Lot 10 legal description to be confirmed per continued abstract per Section 7, 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 designated the Real Estate. SECTION 2. PRICE. The purchase price shall be payable to Seller in cash at closing as follows: $120,000.00 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 to the date of closing. Buyer shall pay all subsequent real estate taxes. Any proration of real estate taxes on the Real Estate shall be based upon such taxes for the year currently payable unless the parties state otherwise. SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments, if any, which are a lien as of the date of closing. SECTION 5. POSSESSION. Subject to the conditions in Section 14, possession of the Real Estate shall be delivered to Buyer on or before August 1, 2014, or such other date as the parties may agree in writing. SECTION 6. 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. SECTION 7. 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. 060214DM SECTION 8. 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 9. TIME IS OF THE ESSENCE. Time is of the essence in this contract. SECTION 10. REMEDIES OF THE PARTIES. 10.1 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. 10.2 If Seller fails to timely perform this contract, Buyer has the right to have all payments made returned to it. 10.3 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. SECTION 11. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties. SECTION 12. 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 13. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or before June 13, 2014, it shall become void and all payments shall be repaid to the Buyer. SECTION 14. OTHER PROVISIONS. 14.1 The Offer is subject to final approval of the City Council of the City of Dubuque, Iowa in its sole discretion. 14.2 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 (except for any damage, 2 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. 14.3 Seller warrants that at 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. 14.4 Until thirty (30) days after Acceptance by both parties, Buyer shall have the right to terminate this agreement if environmental conditions exist on the Real Estate if Buyer determines in its sole discretion that such conditions must be remediated. 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. THIS OFFER IS ACCEPTED Dated: y Dated: C/041 CITY OF DUBUQUE, IOWA BUYER By: Michael C. Van Milligen City Manager MID -AMERICA PROPERTY MANAGEMENT, LLC 3 Attachment A Address: 516 Lincoln Avenue Legal Description: Lot 10 High Street Sub & Vacated Portion of Troy Street Warranty Deed (Corporate/Business Entity Grantor) THE IOWA STATE BAR ASSOCIATION Official Form #335 Recorder's Cover Sheet 01 11111111111 111 MIIIMI 0 111111111 i 0 Doc ID 008089780005 Type: GEN Kind: DEED WITH RESOLUTION Recorded: 09/15/2014 at 01:47:42 PM Fee Amt: $223.20 Page 1 of 5 Revenue Tax: $191.20 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11e2014-00010201 Preparer Information: (Name, address and phone number) Maureen A. Quann 300 Main Street, Suite 330, Dubuque, Iowa 52001 (563) 589-4381 Taxpayer Information: (Name and complete address) City of Dubuque, Iowa 50 West 13th Street Dubuque, Iowa 52001 Return Document To: (Name and complete address) Maureen A. Quann 300 Main Street, Suite 330, Dubuque, Iowa 52001 (563) 589-4381 Grantors: Grantees: Mid America Property Management LLC City of Dubuque, Iowa Legal description: See Page 2 Document or instrument number of previously recorded documents: © The Iowa State Bar Association 2005 IOWADOCS® 500 27°0 City Clerk THE IOWA STATE BAR ASSOCIATION Official Form No. 335 Maureen A. Quann FOR THE LEGAL EFFECT OF THE USE OF THIS FORM, CONSULT YOUR LAWYER '- For the valuable consideration, consideration Mid Warranty Deed (Corporate/Business Entity Grantor) of one Dollar(s) and other America Property Management LLC a(n) Corporation organized and existing under of Dubuque, Towa the laws of Iowa does hereby Convey to the City the following in Troy Street covenants that it has clear of all Defend the herein, including to described real estate in Dubuque County, Iowa: Lot 10 and the estate the real covenants may gular Dated: STATE by James in High Street Subdivision vacated portion of The grantor hereby by title in fee simple; estate is free and to Warrant and be above stated. Words and phrases or plural numbr, according `,/d/ Y the City of Dubuque, Iowa, according to abutting said Lot 10 with grantees, and successors in interest, good and lawful authority to sell and convey liens and encumbrances, except as may real estate against the lawful claims of acknowledgment hereof, shall be the context. the recorded Plat thereof, that it holds the real the real estate; that be above stated; and it all persons, except as construed as in the sin- LLC / OF IOWA , COUNTY Mid America Property Management a(n) Towa Corporatio James Reibling., By OF Dubuque This record was acknowledged Reibling before me on this day of as of Mid America Property Management LLC ,. .. w, MAt.1H��N A. QUANN Commission Number 76'401 My Comm. Exp.: Si mature of NotaryPublic g © The Iowa State Bar Association 2013 335 WARRANTY DEED (CORPORATE/BUSINESS ENTITY DEED) IOWADOCS© Revised August 2013 RESOLUTION NO. 192-14 RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY JAMES REIBLING, D/B/A MID -AMERICA PROPERTY, LLC, IN THE CITY OF DUBUQUE Whereas, the City of Dubuque intends to acquire certain real estate located immediately adjacent to the area of the Bee Branch Creek Restoration Project (Project) for stormwater mitigation activities as recommended in the 2001 "Drainage Basin Master Plan" as amended in 2013; and Whereas, this certain real estate is not currently part of or located within the Bee Branch Creek Restoration Project; and Whereas, the owners of this certain real estate 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, Lincoln Avenue will be closed to thru traffic as a result of the Project necessitating the construction of a new connection between Lincoln Avenue and Rhomberg Avenue (Lincoln Ave Extension) to allow vehicular and pedestrian traffic to and from Audubon Elementary School; and Whereas, the property originally identified to be acquired to allow for the Lincoln Avenue Extension would only allow for a one-way street in close proximity to the proposed Rhomberg Avenue Bridge; and Whereas, purchasing this certain real estate will allow for the Lincoln Avenue Extension to accommodate two-way traffic and be farther away from the proposed Rhomberg Avenue Bridge resulting in traffic better sight lines; and Whereas, the acquisition of this real estate 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 real estate scheduled for acquisition and an Acknowledgment of Voluntary Negotiation 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 real estate: LOT 10_ in High Street Subdivision and the vacated portion of Troy Street abutting said Lot 10 all in the City of Dubuque, Iowa at the cost of One Hundred Twenty Thousand and 00/100 Dollars ($120,000.00). Section 2. That the City of Dubuque be and is hereby authorized to accept a Warranty Deed from the owners, conveying the owner's interest to the City of Dubuque, Iowa for the herein described real estate. Section 3. That the City Attorney 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 Attorney 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 7th day of July, 2014. Kevin S Firnstahl, ity 44', Roy D. Bu, 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. 192-14 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 8th day of July, 2014. dllPrtijigeaPrAPr Kevi . S. Firnstah', C , City Clerk ui mi Y IIUMI0 lII U0I U Y 11 11 0110101 Doc ID. 008089790002 Type GWH Kind: GROUNDWATER HAZARD Recorded: 09/15/2014 at 01:48:03 PM Fee Amt: $0.00 Pape 1 of 2 Dubuque County Iowa Kathy Flynn Thurlow Recorder File2014-0-0-0-01523 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name Mid America Property Management LLC Address 516 Lincoln Avenue Dubuque Iowa 52001 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: 516 Lincoln Avenue Dubuque Iowa 52001 Number and Street or RR City, Town or P.O. State Zip Legal Description of Property: (Attach if necessary) Lot 10 in High Street Subdivision in the City of Dubuque, Iowa, according to the recorded Plat thereof, and the vacated portion of Troy Street abutting said Lot 10 1. Wells (check one) 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) )(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) 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. Priv to Burial Site (check one) here 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) 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 T E INFO - ATION STATED ABOVE IS TRUE AND CORRECT. Signature: ranpror or Agent) FILE WITH RECORDER Telephone No.: l rcl c07/ DNR form 542-0960 (July 18, 2012)