Vacating Sale of Sycamore Cedar AlleyTHE CITY OF
DvB ~E
Masterpiece nn the Mississippi
MEMORANDUM
August 14, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Setting Public Hearing for the Vacation and Sale of Undeveloped Alley
SB Development LLC, the development corporation that acquired the former Dubuque
Meat Packing Plant site, is in the process of acquiring several parcels of land that lies in
the square block bordered on the north by 16t" Street, on the south by 15t" Street, on
the east by Sycamore Street and on the west by Cedar Street. This is the current home
of Blum Co. The SB Development Group also desires to acquire the undeveloped alley
which lies in the center of these parcels.
The City does not currently utilize the alley and no utilities are located in the parcel
proposed to be vacated. Economic Development Director Dave Heiar recommends that
a public hearing be set for September 4, 2007, for the City Council to consider the
vacation and sale of the undeveloped alley based on the following terms:
The City sets and holds a public hearing on the proposed vacation/sale of the
alley.
2. The City sells the alley for $1.00.
3. In the event that the City needs some or all of the Real Estate in connection
with the Bee Branch project, SB Development shall sell the Real Estate to
City at an amount equal to: (i) SB Development's cost to acquire the Real
Estate ($550,000.00); plus (ii) an amount equal to SB Development's actual
interest expense incurred to finance the acquisition of the Real Estate; plus
(iii) the "Additional Amount" as described below. The "Additional Amount"
shall mean $10,000 if the City exercises its rights to acquire the property in
2007, $15,000 if exercised in 2008, $20,000 if exercised in 2009, and $25,000
if exercised in 2010.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~~ . ~-,
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CTTY OF
DuB E
Masterpiece on the Mississippi
MEMORANDUM
August 13, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director ~~~~f
SUBJECT: Setting Public Hearing for the Vacation and Sale of Undeveloped Alley
BACKGROUND
SB Development LLC, the development corporation that acquired the former Dubuque
Meat Packing Plant site, headed by Wayne Briggs, is in the process of acquiring several
parcels of land along the south side of 16th Street. These parcels include lots 378, 379,
380, 381, 382, 413, 414, 415, 416, and 417 in East Dubuque No. 2 (see attachment "A"
and aerial photo).
The SB Development Group also desires to acquire the undeveloped alley which lies in
the center of the aforementioned lots. The current owners of this real estate, and their
predecessors have used and occupied the undeveloped alley for many years.
The proposed agreement to vacate and sell the alley to SB Development LLC includes
the following terms:
1. The City sets and holds a public hearing on the proposed
vacation/sale of the alley.
2. The City sells the alley for $1.00
3. In the event that the City needs some or all of the Real Estate in
connection with the Bee Branch project, SB Development shall sell
the Real Estate to City at an amount equal to: (i) SB Development's
cost to acquire the Real Estate ($550,000.00); plus (ii) an amount
equal to SB Development's actual interest expense incurred to
finance the acquisition of the Real Estate; plus (iii) the "Additional
Amount" as described below. The "Additional Amount" shall mean
$10,000 if the City exercises its rights to acquire the property in
2007, $15,000 if exercised in 2008, $20,000 if exercised in 2009
and $25,000 if exercised in 2010.
4. In the event the City gives notice to reacquire the Real Estate for
the Bee Branch project, SB Development shall provide City with an
updated abstract at SB Development's expense, and shall cure any
title defects caused by it at its expense. SB Development shall
deliver a warranty deed, declaration of value and groundwater
hazard statement to City at the closing and SB Development shall
pay the transfer tax, prorated real estate taxes and its own attorney
fees. City shall pay its own attorney fees and recording costs.
RECOMMENDATION/ACTION STEP
Based on the fact that the City currently does not utilize the alley, and with the additional
commitment that the City can reacquire the alley and adjoining lots if needed for the
Bee Branch project, I recommend that the City Council set a public hearing for
September 4, 2007 to consider the vacation and sale of the undeveloped alley shown
on Exhibit A based on the terms of the attached agreement.
Attachments
F:\USERS\DHeiarNacate Alley set for ph.doc
AGREEMENT TO VACATE ALLEY
This Agreement to Vacate Alley ("Agreement") is made and entered into this
day of Au ust, 2007, by and between the City of Dubuque, Iowa ("City") and SB
Development, L.L.C. ("SB Development").
RECITALS
A. SB Development has or is in the process of acquiring the following
described real estate located in the City of Dubuque, Iowa (hereinafter
referred to as the "Real Estate"):
Lots 378, 379, 380, 381, 382, 413, 414, 415, 416 and
417, in East Dubuque No. 2, in the City of Dubuque,
Iowa, according to the recorded plat thereof.
B. There is a platted but undeveloped alley way running through and
adjacent to the Real Estate as depicted on Exhibit "A" hereto (the
"Undeveloped Alley"). The party in possession of the Real Estate and its
predecessors in title have used and occupied the Undeveloped Alley for
many years.
C. The parties desire that the City vacate the Undeveloped Alley as
described herein in accordance with the terms of this Agreement.
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Vacation of Alley. The City shall take all such action as may be necessary
or appropriate to vacate the Undeveloped Alley described herein with the effect that
such vacated alley shall revert to the owner of the adjacent lots which adjacent lots are
described in Recital A hereto. SB Development shall pay the City $1.00 for the vacated
Undeveloped Alley.
2. Purchase of Real Estate by City. In the event that the City needs some or
all of the Real Estate in connection with the Bee Branch project, SB Development shall
sell the Real Estate to City at an amount equal to: (i) SB Development's cost to acquire
the Real Estate in the amount of $550,000.00; plus (ii) an amount equal to SB
Development's actual interest expense incurred to finance the acquisition of the Real
Estate; plus (iii) the "Additional Amount" as described below. The "Additional Amount"
shall mean $10,000 if the City exercises its rights to acquire the property in 2007,
$15,000 if exercised in 2008, $20,000 if exercised in 2009 and $25,000 if exercised in
2010. The conveyance of the Real Estate from SB Development to the City shall occur,
if at all, within sixty (60) days after the City provides SB Development with notice of its
intent to acquire the property for use in the Bee Branch; provided, however, the City's
rights to acquire the Real Estate pursuant to this Agreement shall terminate if no such
notice is provided to SB Development by December 31, 2010, unless this Agreement is
extended by a written instrument signed by all the parties hereto.
3. Costs and Procedure re Repurchase. In the event the City gives notice to
reacquire the Real Estate as provided in this Agreement, SB Development shall provide
City with an updated abstract (updated within 30 days of the scheduled closing), at SB
Development's expense, and SB Development shall cure any title defects caused by it
at its expense. SB Development shall deliver a warranty deed, declaration of value and
groundwater hazard statement to City at the closing and SB Development shall pay the
transfer tax, prorated real estate taxes and its own attorney fees. City shall pay its own
attorney fees and recording costs.
4. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the laws of the State of Iowa. This Agreement shall be binding upon
the parties' successors, heirs and assigns. This Agreement may not be modified or
waived except pursuant to a writing executed by the parties hereto. This Agreement
may be executed in one or more counterparts, each of which shall be deemed to be an
original, but all of which shall be deemed to be one and the same instrument.
CITY OF DUBUQUE,
Roy D. Buol, Mayor
By:
Jeanne Schneider, City Clerk
SB DEVELOPMENT, L.L.C.
By:
Wayne A. Briggs, President
F:\USERS\DHeiar\SB Development-City of Dubuque Vacate Agr.doc
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A6EW ABSTRACT COMPANY ~,
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ABSTI'.ACT OF T ITLE
to
Lot~mu:bar 378 is F.aet Dubuque :io. 2, D:iouqua County, Iotra, acoordinc
to the slat of Bald E1st Dubuquo Ifo. Z. reoordad in Eook T on ,,a.ge 633
of • the racarla of deeds Lor~ Dubuque County, Strte of Iowa, begira:ire
with Dsoembcr 15th, 1858, baing the Sate of the i111ng of the ;.1st o f
said hd3lticn, at ^:hloh time the titls to aaid lot is nsauvad ae
baing in the nau,aa of Edxard Lsngrrcrthy and Linooln Clark Trustees.
Dook T. raga 639•aho:•ia a Plat of Eaet Dubuque ITO. S, baing a Subdivi-
eion of tdireral Lota 9B, S7, X38 :and °8 .into LotE auabarod trca. 34C
to 643 inoluaive.
The f ollowing 16 t he dsdioation: .
Tho diswosition of our land as-exhibited on tbie Plat Ss m+sdo rrlth cur
free oonsent and in aaoordanoo with our 3ealra as Trustees.
• (&ig:) E:lvard LsngrorthY ~ Trustsea.
I;incoln Clark '
Approved by County.Judae December 15th, 1888.
The following' is a oopy of Part of the Plat of aaid Eaat Dubucaus ITO. 3
gho::ing the location of lot nucber 378:
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. ~ ~11~1~ I.._____ ~ ~ ~ .
viG• Filed for r"lscord
/ra ./is pao. lfit:i, 186E.
• ~ ~ 'lye w,/ gcale 300 foet t o zn lnch.
1 ~ .irL yrN
•,. ,% -.~..~. ~4;x-~«C-- Trssnefa::ed to Sock of
d Plate 2 at ~s¢e 1C3
~~ v:brusry 1865 by 'Ss. H.
`~ .. .v ~i n t-~ Ev_rs, Sur. ~ C. E.
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