Property Acquisition_1598 Washington Street_RichardTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase 1598 Washington Street
DATE: September 8, 2014
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
Housing and Community Development Department Director Alvin Nash recommends
City Council approval to purchase a home for $47,000 located at 1598 Washington
Street owned by Roger D. Richard for the purpose of rehabbing and reselling to a
qualified homebuyer. Staff expects that after rehab, the sale price for the property will
be approximately $85,000 to $90,000. This will be a loss, however, the property will be
sold to an income qualifying household, putting ownership back into the neighborhood
and will put the property back on the tax roll.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bat44 .,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing and Community Development Department Director
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
bitetri
All -America City
1 r
2007 • 2012 • 2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing and Community Development Department
SUBJECT: Purchase 1598 Washington Street in the Washington Neighborhood
DATE: September 8, 2014
Introduction
The purpose of this memorandum is to request City Council authorization to purchase a
house located at 1598 Washington Street for the purpose of rehabbing and reselling to
a qualified homebuyer.
Background
As part of continued efforts of the Washington Neighborhood Strategic Plan adopted by
the City Council in 2009, the City has been attempting to increase homeownership
opportunities in the Washington neighborhood. To -date, 31 properties have been
converted from rental to owner -occupied.
Discussion
The property is in substandard condition and is a candidate for rehabilitation under the
Washington Neighborhood Incentives Programs. The property is owned by Roger D.
Richard. To support and facilitate this rehab and re -marketing effort for the Washington
Neighborhood, it is recommended that we purchase this property, using Residential
Rehabilitation Program funds (RRP-program income from previous program). It is a
blighting influence on the block and will hinder our efforts to rehabilitated homes to new
purchaser families. We intend to similarly rehab this home and sell it as part of this
homeownership initiative. Staff expects a sale price after rehab to be approximately
$85-90,000. We realize that there will be loss, however, the property will be sold to an
income qualifying household, putting ownership back into the neighborhood and will put
the property back on the tax roll.
Action Step
The action requested of the City Council is to approve the attached resolution,
authorizing the purchase of property located at 1598 Washington Street, from the Roger
D. Richard, for $47,000.00.
KLN/AN
RESOLUTION NO. 286-14
RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY ROGER D.
RICHARD AT 1598 WASHINGTON STREET IN THE CITY OF DUBUQUE
Whereas, the City of Dubuque intends to acquire certain real estate to for the purpose of
rehabbing and reselling it to income qualified households; and
Whereas, a purchase agreement has been finalized with the owner of the property
scheduled for acquisition.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby approves the acquisition of the following legally
described property:
Lot 2 of Lot 1 of Lot ].2in East Dubuque, an addition in the City of Dubuque,
Iowa according to the recorded plat thereof
At the cost of Forty -Seven Thousand Dollars ($47,000.00).
Section 2. That the City of Dubuque hereby approves the acquisition of 1598 Washington
Street owned by Roger D Richard at the cost of Forty -Seven Thousand Dollars ($47,000.00).
Section 3. 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 4. That the City Clerk be and is hereby authorized and directed to cause said Quit
Claim Deed to be recorded in the office of the Dubuque County Recorder, together with
certified copy of the Resolution.
Section 5. 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 15th day of September, 2014.
ATTEST:
Kevi. Firnstahl, CM
ty Clerk
Roy D. Buolayor
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: Roger Richard, a single person (Seller)
SECTION 1. REAL ESTATE DESCRIPTION. The undersigned BUYER hereby offers
to buy and the undersigned SELLER by his acceptance agrees to sell the real estate
(Real Estate) situated in Dubuque, Iowa, locally known as 1598 Washington, Dubuque,
IA 52001 and legally described as:
Lot 2 of Lot 1 of Lot 112 in East Dubuque, an Addition to the City of Dubuque, Iowa,
according to the recorded plat thereof
legal description to be confirmed per continued abstract per Section 10, together with
any easements and appurtenant servient estates, but subject to the following:
a. any easements of record for public utilities or roads,
b. any zoning restrictions and other ordinances, and
c. any covenants of record.
SECTION 2. PURCHASE PRICE. The purchase price shall be $47,000.00, payable in
cash at the Closing.
SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes
payable for fiscal year 2013-2014 and prior years. Seller shall also pay real estate
taxes for fiscal year 2014-2015 prorated through the date of closing. Buyer shall pay all
subsequent real estate taxes due and payable after the date of closing.
SECTION 4. SPECIAL ASSESSMENTS. Seller 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 Buyer.
SECTION 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or
damage to the Real Estate prior to closing or possession, whichever first occurs. Seller
agrees 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 property
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 of 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
1
SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This Contract
shall apply to and bind the successors in interest of the parties. This Agreement shall
survive the closing.
SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND
REVIEW.
13.1 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. Buyer and its agents and representatives shall also have the right to enter
upon the Real Estate at any time after the execution and delivery hereof for any
purpose whatsoever, including 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, 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 it considers appropriate.
13.2 Seller warrants to the best of Seller's knowledge and belief that there are no wells,
solid waste disposal sites, hazardous wastes or substances, underground storage tanks
or burial sites located on the Real Estate, except as set out below. Seller further
warrants that Seller has done nothing to contaminate or allow the contamination of the
Real Estate and has no knowledge of any contamination. Seller warrants that the Real
Estate is not subject to any local, state, or federal judicial or administrative action,
investigation or order regarding its environmental condition or environmental
compliance. Seller shall provide Buyer with a properly executed Groundwater Hazard
Statement showing no wells, solid waste disposal sites, hazardous wastes,
underground storage tanks and private burial sites on the Real Estate which shall be
considered a warranty and representation by Seller to Buyer.
13.3 Seller represents and warrants to Buyer that the Real Estate is not served by a
private sewage disposal system, and there are no known private sewage disposal
systems on the property.
SECTION 14. ENCUMBRANCES. Seller warrants that the Real Estate will as of the
date of closing be free and clear of all liens, security interests, and encumbrances;
SECTION 15. TENANTS. The Real Estate is free and clear of any occupants, and no
party has a lease to or other occupancy or contract right in the Real Estate which shall
in anyway be binding upon the Real Estate. Seller shall hold harmless and indemnify
the Buyer for and against any claims, which may arise or be based upon any alleged
leasehold interest, tenancy, or other right of occupancy or use for any portion for the
3
50 W. 13th Street
Dubuque, IA 52001
SECTION 21. TIME IS OF THE ESSENCE. In the performance of each part of this
Agreement, time shall be of the essence.
SECTION 22. TIME FOR ACCEPTANCE. When accepted, this Agreement shall
become a binding contract. If this offer is not accepted and delivered to BUYER on or
before 5:00 p.m. on August 29, 2014, this Agreement shall be null and void and all
payments shall be returned immediately to the Buyer.
SECTION 23. ENTIRE AGREEMENT. This Agreement contains the entire agreement
of the parties and shall not be amended except by a written instrument duly signed by
Seller and Buyer.
SECTION 24. PARAGRAPH HEADINGS AND CONSTRUCTION. 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.
SECTION 25. OTHER PROVISIONS.
25.1 Seller will provide Buyer with a signed Acknowledgment of Voluntary Negotiation
and Purchase of Property at the time of closing.
25.2 This Agreement is subject to the 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.
Accepted : August ,.2014 Dated: September /172014
SELLER BUYER
ROGER D. RICHARD CITY OF DUBUQUE
EIN
By: Roger D. Richard
1543 Washington Street
Dubuque IA 52001
J
EIN: 42-6004596
By: Michael C. Van Milligen
City Manager
50 W. 13th Street
Dubuque, IA 52001
Telephone: 563-589-4110
5
ACKNOWLEDGMENT OF VOLUNTARY NEGOTIATION
AND PURCHASE OF PROPERTY
Project: 1598 Washington Street, Dubuque, IA 52001
Parcel No.: 1024282001
As owner(s) of real estate needed for the above referenced project and parcel, (I) (We)
acknowledge this is a voluntary 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 voluntary negotiated sale to The City of Dubuque, Iowa was
made without any coercive action of any nature.
Seller
Date
y
Seller Date
Notary Public in and for Dubuque County, Iowa
1111111101 11011111111111111
Doc ID: 008308610003 Type: GEN
•Kind: RESOLUTION
Recorded: 09/02/2015 at 04:18:17 PM
Fee Amt: $17.00 Page 1 of 3
Dubuque County Iowa
John Murphy Recorder .
Fi1e2015_00011424
Prepared by Kris Neyen, City of Dubuque, 350 W. 6th St., Ste 312, Dubuque, IA, 563-690-6094
Return to Kevin Firnstahl, City Hall, 50 W. 13th St, Dubuque, IA 52001, 563-589-4121
RESOLUTION NO. 286-14
RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE OWNED BY ROGER D.
RICHARD AT 1598 WASHINGTON STREET IN THE CITY OF DUBUQUE
Whereas, the City of Dubuque intends to acquire certain real estate to for the purpose of
rehabbing and reselling it to income qualified households; and
Whereas, a purchase agreement has been finalized with the owner of the property
scheduled for acquisition.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby approves the acquisition of the following legally
described property:
Lot 2 of Lot 1 of Lon. 12in East Dubuque, an addition in the City of Dubuque,
Iowa according to the recorded plat thereof
At the cost of Forty -Seven Thousand Dollars ($47,000.00).
Section 2. That the City of Dubuque hereby approves the acquisition of 1598 Washington
Street owned by Roger D Richard at the cost of Forty -Seven Thousand Dollars ($47,000.00).
Section 3. 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 4. That the City Clerk be and is hereby authorized and directed to cause said
Deed to be recorded in the office of the Dubuque County Recorder, together with
certified copy of the Resolution.
Section 5. 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 15th day of Septgfnber, 2014.
Roy D. Buol/)ilayor
ATTEST:
Kevi1 Firnstahl, CMS ' ity Clerk
STATE OF IOWA
CERTIFICATE of the CITY CLERK
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. 286-14 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 27th day of August, 2015.
Kevin
S. irnstahl, CMty Clerk
Doc ID 008138770001 Type' GEN
Kind: WARRANTY DEED
Recorded: 11/06/2014 at 01:56:53 PM
Fee Amt: $86.40 Pape 1 of 1
Revenue Tax: $74.40
Dubuque County Iowa
Kathy Flynn Thurlow Recorder
F11e2014-00012604
®THE IOWA STATE BAR ASSOCIATION Crenna Bramwell FOR THE LEGAL EFFECT OF THE USE OF
Official Form No. 101 -August 2013 THIS FORM, CONSULT YOUR LAWYER
Return To: City of Dubuque. 50 W. 13th Street, Dubuque. IA 52001
Preparer:Crenna Bramwell 300 Main Street Suite
Taxpayer: City of Dubuque, 50 W. 13th Street,
331, Dubuque IA 52001 Phone: (563) 589-4381
Dubuque, IA 52001
STATE
7
For the consideration
Roger D. Richard,
WARRANTY DEED
of One Dollar(s) and other valuable consideration,
divorced and not remarried
do hereby
Convey to City of Dubuque, a municipal corporation
the
following described
Lot 2 of Lot 1 of
recorded plat thereof
Book 112TL, page
Grantors do Hereby
title in fee simple;
is free and clear
Warrant and Defend
Each of the undersigned
real estate. Words
or plural number,
D ed: November
real estate in Dubuque County, Iowa:
Lot 112 in East Dubuque, an
subject to right to use gas
283, records of Dubuque County,
Covenant with grantees, and
that they have good and lawful authority
of all liens and encumbrances except
the real estate against the lawful
hereby relinquishes all rights
and phrases herein, including acknowledgment
and as masculine or feminine gender,
6, 2014
Addition in the City of Dubuque, Iowa, according to
mains in Lot 1 of Lot 112, as granted in Warranty Deed,
Iowa
successors in interest, that grantors hold the real estate by
to sell and Convey the real estate; that the real estate
as may be above stated; and grantors Covenant to
claims of all persons except as may be above stated.
of dower, homestead and distributive share in and to the
hereof, shall be construed as in the singular
according to the context.
i
Roger . Richard (Grantor) (Grantor)
STATE OF IOWA , COUNTY OF DUBUQUE
This record was
c',CS-�'L
ack, wledged befg�e me this 6th day of November , 2014 , by
b • (I/�(?Aviv .
J
pui4.,...; OREk� ti3L tt Val SIM A ;
Corm/it/Won Number 744
4.-. kii 6 sta). Er . -4-1
ignature of Notary Public
(This form of acknowledgment for individual grantor(s) only)
1598 Washington Street Acquisition and Sale Timeline
Meeting
Placement
Description
Resolution
Notes
09/15/204
12/15/14
CO3
C16
Approving acquisition from Roger
Richard
1
286-14
11/6/14 Deed only recorded
Resolution not recorded and has wrong legal description.
9/2/15 Deed re-recorded with Resolution No. 286-14
Approving Title Transfer to CHI
384-14
This Resolution was recorded on 2/18/15 with Deed from 1/5/15
meeting.
Resolution has wrong legal description.
01/05/15
C13
Approving Title Transfer to CHI
9-15
Repeated agenda item to add the Deed.
Deed from this item recorded with Resolution 384-14 from previous
meeting.
Resolution No. 9-15 has wrong legal description.
Resolution No. 9-15 was never recorded but is nearly identical to
Resolution No. 384-14.
9/2/15 Deed re-recorded with Resolution No. 195-15
02/10/15
Approving Title Transfer to CHI
Deed Signed by Mayor and Clerk.
02/11/15
Approving Title Transfer to CHI
Deed and Resolution No. 384-14 given to Housing.
02/1815
Approving Title Transfer to CHI
Deed recorded with Resolution No. 384-14.
Resolution has wrong legal description.
05/18/15
TBS1
Setting public hearing
166-15
Required for proper disposition of property.
06/01/15
PH2
Ratifying conveyance to CHI
and adding Restrictive Covenants
195-15
6/4/15 Resolution No. 195-15 recorded with correct legal description.
6/4/15 Restrictive Covenants recorded.
City Clerk has original Restrictive Covenants and Deed with
Resolution No. 195-15.
Ww
9/2/15
Approving acquisition from Roger
Richard
286-14
Corrected Resolution No. 286-14 added to Deed and re-recorded
9/2/15
Ratifying conveyance to CHI
And Restrictive Covenants
195-15
Correction Deed re-recorded with Resolution No. 195-15
F:\Council\Council_Forms\15_08_26_Timeline for 1598 Washington Purchase-Sale.docx