Request to Vacate_Sale Alley Sycamore_CedarTHE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
August 28, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Vacation and Sale of Undeveloped Alley
Economic Development Director Dave Heiar is recommending the sale of the
undeveloped alley in the square block bordered on the north by 16th Street, on the south
by 15th Street, on the east by Sycamore Street and on the west by Cedar Street, to SB
Development LLC, which is purchasing that block. This area is the current home of
Blum Co.
The vacation of this alley would create a development parcel at the site across the
street from the former Dubuque Packing Company. SB Development LLC is the
development corporation that acquired the former Dubuque Packing Plant site and is
currently developing that site and acquiring other parcels in the surrounding area.
The City would sell the vacated alley for $1.00 in return for the right to repurchase the
alley for the same price and to acquire the entire real estate parcel for the price paid by
SB Development, plus an amount equal to any actual interest expense incurred for the
financing of the acquisition of the real estate and an additional amount of $10,000 if the
City exercises its right 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. While it has not been
finally determined, the City may need this property for construction of the Bee Branch
Creek Restoration Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CTTX OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
August 28, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Directo
SUBJECT: Vacation and Sale of Undeveloped Alley
BACKGROUND
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 16th Street, on the south by 15th 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 the aforementioned lots. The current owners of this real estate, and their
predecessors have used and occupied the undeveloped alley for many years. The City
currently does not utilize the alley and no utilities are located in the parcel proposed to
be vacated.
The proposed agreement for City Council consideration is to vacate and sell the alley to
SB Development LLC. The agreement 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.
On August 20th the City Council set a public hearing for September 4, 2007 to consider
this agreement.
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 review and approve the vacation
and sale of the undeveloped alley shown on Exhibit A based on the terms of the
attached agreement.
F:IUSERS1DHeiarlVacate Alley.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 tots 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 Reat 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 atl 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 attomey 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 Agreemen#
may be executed in one or more counterparts, each of which shall be deemed to be an
original, bu# all of which shall be deemed to be one and the same instrument.
CITY OF DUBUQUE,
By:
Roy D. Buol, Mayor
Jeanne Schneider, City Clerk
SB DEVELOPMENT, L.L.C.
By:
Wayne A. Briggs, President
F:IUSERS1DHeiar\SB Development City of Dubuque Vacate Agr.doc
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AESTP.ACT Ol T ISLE •
to
Got-nucbar 378 in gaet Dubuque 80. 8, Dubuque County, Iona, acoordias ,
to thsf flat of said Eest DabVque Eo. 8.reoorded in Soot T on ;.age 635 •
of • the raaarts of ieeda for• Dubagne Cowsty, Stttr of Ioxa, bagianiLg
with Da=caber 15th, 16x8, being the 3ata of the iilltsE of the ;1gt o f•
said Ad3ltion, at xhioh ties tbs title to said lot is aaaured as - ..
- being in the na,eaa of Edward Lsiy'saorthy and Linooln C1azY Trustees.
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• Book T.^•age fi39-aboya s plat of Seat Dubuque Ho. 8, be,tng a 8ubdi.i-
sioa of Alaeral Lots 96, 9?, 98 lsnd 89 .into Lots nusbarad frac• 840 •
to fi43 iaolusive.
Tha ioiloring is the dedioations .
She dis;,oeltion oS our lead as exhibited oa this plat Sa m'sde with ass
tree aoaseat and in aaoordaaas with our desire as Tsnsteea.
• (big: } EQaard ~,sagaor*.3sr } •
3 Trusties.
Lincoln Clary
dpproved by County. Judge Dacaabes•15th, 1858. -
The Sollowiag is a Dopy at Fart of the plat of Bald Bast Dubuque Do. 8
• ghowiag the looatioa of lot nuabar 37E: •
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• ~~ aib• Filed for iecwsd -
dr• /i.r pec. SSta, 1886.
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;rV y» Scala 3C0 fast t o as inch.
,y, • «`~,~- ~e,~',sa.-l-` 7ransie:red to Sock of
r--t ~ Plata 2 at page lt3
.. ~ ~j ~ ~ ~ e'sbruary 1E65 oy 750. 6.
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