Dubuque Initiative Purchase Agreement West End Fire StationTHE CITY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
August 29, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase Agreement with Dubuque Initiatives for Land for Future
West-end Fire Station
Economic Development Director Dave Heiar recommends City Council approval to
purchase approximately 1.8 acres in the Dubuque Industrial Center from Dubuque
Initiatives to provide a site for ablest-end Fire Station.
The proposed purchase agreement involves Dubuque Initiatives selling the land for the
fire station for $1.00. The following conditions are tied to the donation of the land:
1) All improvements will be completed by the City within 18 months of the land
donation. The City will pay for all improvements which include grading, public
streets, water, sewer and drainage improvements.
2) Dubuque Initiatives will dedicate the land for the street, detention basin, and
utility easement and will also provide reasonable easements as required for said
construction.
3) Dubuque Initiatives will provide fill material to construct the required pad and
other improvements from a lot north of Chavenelle which shall be loaded and
hauled by the City of Dubuque. Upon removal of the fill material, the proper
grading of the site will be the responsibility of the City of Dubuque.
4) Dubuque Initiatives will loan up to $650,000.00 to the City of Dubuque over a
period of ten years to finance proposed site improvements. Said loan shall carry
interest at the rate of 5.0% per year.
5) Maintenance of the detention pond constructed by the City as part of the storm
water drainage plan will be the responsibility of the City.
6) All terms and conditions of the Offer to Purchase will survive said closing.
7) The offer to buy is contingent upon receipt of approvals required from the Iowa
department of Transportation for access onto the NW Arterial, and from the
Corps of Engineers to accommodate wetland mitigation.
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 MEMORANDUM
Masterpiece on the Mississippi
August 28, 2007
TO: Michael Van Milligen, City Manager
r` '
FROM: David J. Heiar, Economic Development Directo l,~
SUBJECT: Purchase Agreement with Dubuque Initiatives for and for Future
West-end Fire Station
INTRODUCTION
This memorandum presents for City Council consideration a resolution approving the
purchase of approximately 1.8 acres in the Dubuque Industrial Center from Dubuque
Initiatives to provide a site for ablest-end Fire Station.
BACKGROUND
A Fire and Emergency Service Response Study was completed in November 2006 by
the Matrix Consulting Group. The report states, "As development occurs, the City
should add one additional station and relocate one current station to accommodate the
increase in fire department workload. This scenario would consist of adding a station at
or near Chavenelle & Radford to provide service to the west side of the City." To act on
this recommendation, the CIP budget provides funds to begin preparing a site in
FY2008 and with design of the facility anticipated in FY2012.
The Dubuque Initiatives land located along the NW Arterial would be an ideal location
for the facility. Dubuque Initiatives has offered to donate the land upon the condition that
the City develops the site.
DISCUSSION
The proposed purchase agreement involves Dubuque Initiatives selling the land for the
fire station. The following conditions are tied to the donation of the land:
1) All improvements will be completed by the City within 18 months of the land
donation. The City will pay for all improvements which includes grading, public
streets, water, sewer and drainage improvements.
2) Dubuque Initiatives will dedicate the land for the street, detention basin, and
utility easement and will also provide reasonable easements as required for said
construction.
3) Dubuque Initiatives will provide fill material to construct the required pad and
other improvements from a lot north of Chavenelle which shall be loaded and
hauled by the City of Dubuque. Upon removal of the fill material, the proper
grading of the site will be the responsibility of the City of Dubuque.
4) Dubuque Initiatives will loan up to $650,000.00 to the City of Dubuque over a
period of ten years to finance proposed site improvements. Said loan shall carry
interest at the rate of 5.0% per year.
5) Maintenance of the detention pond constructed by the City as part of the storm
water drainage plan will be the responsibility of the City.
6) All terms and conditions of the Offer to Purchase will survive said closing.
7) The offer to buy is contingent upon receipt of approvals required from the Iowa
department of Transportation for access onto the NW Arterial, and from the
Corps of Engineers to accommodate wetland mitigation.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution approving the Offer to
Buy Real Estate for approximately 1.8 acres located along the NW Arterial from
Dubuque Initiatives for the purpose of constructing ablest-end fire station.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
F:IUSERS1Adejong\Fire Station\20070827 Council Purchase Memo.doc
Prepared by David J. Heiar, Economic Development, City of Dubuque, IA 52001, Phone (563) 589-4393
RESOLUTION NO. 464-07
A RESOLUTION APPROVING AN OFFER TO BUY REAL ESTATE FOR REAL
ESTATE LOCATED IN THE DUBUQUE INDUSTRIAL CENTER, IN THE CITY OF
DUBUQUE
WHEREAS, the City of Dubuque intends to acquire certain property located in
the area to be used for a future site for ablest-end Fire Station, and
WHEREAS, a purchase agreement has been finalized with the owner of the
property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council of the City of Dubuque hereby approves the
attached Offer to Buy Real Estate for a portion of the following legally described
property:
Lot 2 Dubuque Industrial Center 13th Addition in the City of Dubuque, Iowa
At the cost of one dollar ($1.00).
Section 2. That the Mayor is authorized and directed to sign the Offer to Buy
Real Estate on behalf of the City of Dubuque.
Passed, approved and adopted this 4th day of September, 2007.
Attest:
eanne Schneider, CMC, City Clerk
Roy D. Buol, Mayor
F:\USERSWdejong\Fire Station120070904 Purchase Resolution.doc
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• OFFER TO BUY REAL ESTATE AND ACCEPTANCE
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The undersigned BUYERS hereby affer to buy and the undersigned SELLERS by their acceptance agree to sell the real praperty situated
In _ C~ir~
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a ; ~ s~~.~sbed as:
1.$ acres of land located on the approximate location pursuant to the attached Flat.
together vrith any easements and appurtenant servient esta#es, but subject to any reasonable easements of record for public utilities or roads.
any zoning restnctians customary restrictive covenants and mineral reservations afi record, if any, herein referred to as the "Property," upon the
following terms and conditions provided BUYERS, on possession, are permitted to use the Property for
t. PURChA$E PRICE. The Purchase Price shall be S "see rlddcndum and the method of payment shall be as follows: $
wi#h this offer„ to be deposited upon atxepiance of this afifer and held In trust by
as earnest money, to be delivered to the SELLERS upon performance of SELLERS' otaligations and satisfaction of BU'fERS' contingences, rf
any; and the balance of the Purchase Price, as follows;
2. REAL ESTATE TAXES. Sellers shall pay t?rgrata share af'real estate tax~rorated to the date of possession
r€rtG any unpaid real estate taxes payable in prior years. BUYERS shall pay all subsequent real esta#e taxes.
Unless otherwise provided in this Agreement; at dosing SELLERS shalt pay BUYERS, or BUYERS shall be given a credit for, taxes from
the first. day of July prior to possession to die date of possession based upon the last known actual net real estate taxes payable according to
public records.. I°iowever, if such taxes era based upon a partial assessment of the present property improvements ar a changed tax
dassificaiian as of the tlate of possession, such proration shall be based on the current Levy race, assessed value, legislative tax rollbacks and
real estate tax exemptions that will actually be applicable as shaven 6y the assessor's records on the date of possession.
3. SPECIAL ASSESSNIt=NTS.
A_ SELLERS shall pay in full at time of Casing all special assessments which are a lien an the Property as of the date of acceptance
B IF "A° is stricken, then SELLERS shall pay at time of dosing all installments of special assessments which are a lien on the praperty
and. if not paid, wpuld becarTte delinquent during the calendar year this affer is accepted, and all prior lnstaltmen#s thereoF.
G. A,tl charges far solid waste removal, sewage and maintenance that are attributable to SELLERS' possession, including those for which
assessments arise after closing, shat( be paid by SELLER&.
t}, Any preliminary or deficiency assessment which cannot be discharged by payment shall be paid by SELLERS through an escrow
account with sufficient funds to pay such liens when payable, with any unused funds returned to SELLERS.
_ E. BUYERS shall pay all other special assesstrrents or installments not payable by SELLERS.
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&., T06 Poaa State as A3st~i~ticaa 2~5 t!O OFFER 7O aUY R$Al ESTATE ANC ACCFPFAriCE
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4. RISK OF LOSS ANa tNSL4RANGE. SELLERS shalt bear the risk of loss or damage to the Property prior to closing ar possession,
whtGhever first occurs, SELLERS agree to maintain existing insurance and BUYERS may purchase additional insurance. In the event of
sukstantial damage or destruction prior to lasing, this Agreement shall be nail and void; provided, however, BUYERS shalt have the option
to complete the closing and receive insurance proceeds regardless of the extent of damages. The property shall bs deemed substantially
damaged ar destroyed if it cannot be restored to its present condition on or before the closing date.
6. POSSESSION AND GLOSiNG, If BUYERS iimety perform all obligations, possession of the Properly shall be delivered to Buyers nn
July Ist, 20t?$ ,and any adjustments of rent, insurance, Interest and ail charges attrtbutabie to the SELLERS'
possession shaft be made as of fine date of possession. Closing shall occur after the approval of title by BUYERS and vacation of the
Property by SELLERS, but prior to possession by BUYERS, SELLERS agree to permit BUYERS to inspect the Property within hours
prior to closing to assure that the premises are in the condition required by this Agreement. if possession is given on a day other than closing,
the parties shall make a separate agreement with adjustments as of the date of possession. This transaatlon shall be considered dosed:
A, Upon the delivery of the title transfer documents to BUYERS and receipt of all furxfis then due at closing ham BUYERS under the
Agreement.
B. {if °A" is stricken} Upon the filing of the ttie transfer doc~,ments and receipt of all funds duo at closing from BUYERS under the
Agreement.
8. FIXTURES. tnGuded vaith the Property shall be ail fixtures that integrally belong to, are s~peCifiC211y adapted to or are a park of the real
estate, whether attached nr detached. Also included shah be the following: Vr~t~ANT LA3~ItJ
The following items snail not be included:
B. ABSTl2AGT AND TITLE. SELLERS. at their expense, shall promptly obtain an abstract of 6t1e to tl>e Property continued through the data
of acceptance of this Agreement, ,and deliver it to BUYERS' attorney for examination. tt shall show marketable title in
SEL<.ERS in conformity with this Agreement, Iowa law, and title standards of fHe Iowa S#ate Bar Assodation. The SELLERS snail make
every reasonable effort to promptly perfect title. If closing is delayed due to SELLERS' inability to provide marketable Gtie, finis Agreement
strati continue in force and effect until ,either party rescinds the Agreement after giving ten days written notice to the other party. The abstract
strati become the property of BUYERS when the Purchase Price is paid in full SELLERS strati pay the costs of any additional abstracting
and tide work due to arty act ar omission of SELLERS, including transfers by or the deaUt of SELLERS or their assignees. Unless stricken,
the absUact strati be obkained from an abstracter qualified by the Guaranty Division of the towa Housing Finance Authority.
t3U~!L'r
9. SURVEY. If a survey is required under Iowa Code Chapter 35a, or clty or county ordinances, ~J~LKCCsnalt pay the cxrsts thereof.
BUYERS may, at l3UYER5' expense prior to closing, have the property surveyed and certified by a registered land surveyor.
if the survey shows an encroachment on the Property or if any improvements located on khe Property encroach on lands of others, the
encroachments shalt be treated as a title defect.
10. ENVIRONMENTAL MA"f"rERS.
A. SELLERS warrant to the best of their knowledge and belief that there are no abandoned webs, solid waste disposal sites, hazardous
wastes or substances, or underground storage tanks located on the Property, the Property does hat contain levels of radon gas.. asbestos, or
urea-formaldehyde foam insuiatlon whid3 require remediation under current governmental standards, and SELLERS have done nothing to
contaminate the Property with Hazardous wastes or substances. SELLERS warrant that the property is not subject to any local, state, or
federal judicial or administrative action, investigation or order, as the rase may be, regarding welts, solid waste disposal sites, hazardous
wastes or substances, or underground storage tanks. SELLERS shad also provide BUYERS with a properly executed GRt~UNDLNATE;3
HAZARD STA1"Efv1EN7 snowing no wens, solid waste disposal sites, Hazardous wastes and underground storage tanks on the Property
unless disclosed here;
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B. SUYPRS may at !Heir expense. within days aHer the date of acceptance, obtain a report from a qualified engineer or other
person qualified to analyze the existence or nature of any Hazardous materials, substances, conditions or wastes located orr the Property. in
the event any Hazardous materials, substances, conditions or wastes are discovered an the Property, BUYERS' obligation hereunder snail be
conkingent upon the rerrrovai of such materials, substances, conditions or wastes or other resolution of the matter reasonably satisfactory to
8UY><RS. However, in the event SELLERS are required to expend any sum in excess of 5 to remove any hazaMous
materials, substances, conditions w wastes, SELLERS shall Have the optinn to cancel this transaCtton and refund to BUYERS all earnest
money paid and declare this Agreement null and void. The expense of any inspedlan shalt be paid by BUYERS. The expense of any action
necessary to remove or otherwise make safe any hazardous material, substances, Conditions or waste shalt be paid by SELLERS, subject to
T. GONIIITtON f3F PROPERTY. The property as of the date of this Agreement, including buildings, grounds, and alt improvements, will be
preserved by the SELLERS in 'sts present condition until possession, ordinary wear and tear excepted. 5ELl1=RS make no warranties,
expressed or imps"red, as to the condition of fhe properky.
A. BUYERS acknowledge that they have made a satisfactory Inspection of the Property and are purchasing the Property in its existing
SELLERS' right to cancel this transaction as provided abave
11. DEED. Upon payment. a} the Purchase Price, SELLERS shalt Canvey the Property to BUYERS by ti~'A1tRAN"I'Y deed, free and clear of
ail tiers, restrictions, and encumbrances except as provided in this Agreement. General warranties of the Gtte si~ai} extend to the time of
delivery of the deed excepting. liens and encumbrances suffered ar permitted by BUYERS.
12. JOINT TENANCY IN PROCEEDS AND !N REAL ESTATE. if SELLERS, immediately preceding acxeptance of the after, hold title to the
i'roperty~in joint tenancy with full rights of survivorship, and the jatnt tenancy is not Later destroyed by operation of law ar by acts of tae
SELLERS, then the proceeds of this sate, and any continuing or recaptured rghts of SELLERS it the Property, shat) belong to SELLERS as
joint tenants with full rights of survivorship and not as kenants in common; and BUYERS in the event a# death of any SELLER, agree to pay
any tralance of the price due SELLERS under this contract to the surviving SELLERS and to accept a deed from the surviving SELLERS
consistent with Paragraph t b.
13. JOiNt7ER BY SELLER`S SPOUSE. SELLER'S spouse, if not a title holder immediately preceding acceptance, executes this Agreement
only !or the purpose of relinquishing all rights of dower, homestead and dts#ributive share or in camplianae with Section 3fi1.13 of the Code of
iawa and agrees to execute the deed ar real estate contract for this purpose.
14. STATEMENT AS TO LIENS. if Buyers intend to assume or take subject to a lien on the Property, SELLERS shalt famish BUYERS with
a written statement prior to closing from the holder of such lien, showing the correct balance due.
15. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be used to pay loxes and other liens art to
acquire outstanding interests, if any. of others.
16. APPROVAL OF COURT. If the Property s an asset of an estate, trust or conservatorship, this Agreement is contingent upon Gouty
app€ovai unless Court approval is not required under Iowa few and title standards of the Iowa State Bar Assoaiakion_ if the sale of the
Property is subject to Court approval, the fiduciary shalt promptly submit this Agreement fnr such approval. If this Agreement is not so
approved try .either party may deGare this Agreement null and void, and alt payments made hereurrcter shall Ise made
to QUYERS.
1T. REMEDIES OF TkfE PARTIES.
A. It BUYERS }ail to timely perform thrs Agreement, SELLERS may forfeit it as provided in #tse Iowa Code {Chapter ti5E), and all payments
made shalt tre }arfieited; or, at SELLERS' option, upon thirty days written notice of intention to accelerate the payment of the entire balance
because of BUYERS' default {during which thirty days the default is not cxsrrected). SELLERS may deGare the entire balance immediately
due arad payable. Thereafter this Agreement maybe foreclosed in equity and the Court may appoint a receiver,
8. if SELLERS felt to timely perform this Agreemen}, BUYERS have the right to have all payments made returned to them,
C BUYERS and SELLERS are also entitled to utilize any and ati other remedies or actions at taw ortn equity+ available to them, and the
prevailing parties shaft tre entitled to obtain judgrr~nt for costs and attorney fees.
18. NOTICE. Any notice under this Agreement shall be in writing and tre deemed served when it is delivered try personal delivery or matted
by certified mail, addressed to the parties at the addresses given below.
19, GENERAL PROVISIONS. to the performance of each part of this Agreement, time shalt be of the essence. Failure to promptly assert
rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to
and bind the successors in interest of the parties. This Agreement shalt survive the Dosing. This Agreement contains the entire agreement
of Ehe parties and shat! not be amended except try a written instrument duly signed by SELLERS and BUYERS. Paragraph headings arc far
convenience of reference and shall not limit ar affect the meaning of this Agreen•rent. Wards and phrases herein shall tre construed as in the
singular nr plural number, and as masculine, feminine or neuter gender according to the context.
2t3. NO REAL ESTATE AGENT OR BROKER, Neither party has used the service of a rea! estate agent or broker in connection with this
transaction.
2t. ADDITIQNAL PROVISIONS. "Other Pravistcns"
See rtdcicndtnn t
22. ACCEPTANCE. When accepted, this Agreement shall become a binding conhaat. !f not accepted and delivered to BUYERS on ar
before me day of this Agreement shall be nuts and void arid ell payments made shalt be returned
immediately to BUYERS. If accepted by SELLERS at a later data and acceptance Is satisfied in writing, then this contract shalt be valid and
binding.
Accepted
s~~s.l°R5 aU>~UQUE INITIATIVES
Print Name E3~'•
i72#ed
SUY~RS CITY pl= OU6UQU1=
Print Name $Y:
55#
Print Name
58#
Address: 13th ~'c C.entral ~,vdnud
C)ut~ugue, IA 52lJal
55#
Print Name
SS#
Address: kith ~ C~ntraJ Avenue
Dubuque,tA SZOpI
Telephone: Telephone:
Addendum
Addendum 1
I . The purchase price shall be one dollar {b1.4~) and additional consideration as set forth
herein:
A. rill improvements be completed by the City within 3U months of the land donation.
T3uyer will pay far all improvements which includes grading, public streets, water, sewer,
and drainage improvements
B. Seller will provide at no additional cost land for the street, detention basin and utility
casement and will also provide reasonable construction easements as required by said
construction.
C, Seller will provide fill material to construct said pad and other improvements f°rorn a lot
north of Chavenelle Road which shall be landed and hauled by the Btryer. Upon removal of
the till material, the proper grading of the site will be the responsibility ofthe buyer.
I). Seller may be asked to loan up to $6~O,OUf}.4Q to Buyer for a period often years to
cc~nstruet the related improvements on the property. Said loan shall carry interest at the rate
of 5.~~'~o. payments shall comntencc on the day of,_.~ , 2Q£77 and the
day of each month thereafter until fully paid,
1. Maintenance of the detention pond constructed by the Buyer as part of the Storm Water
L7rainage plan gill be the responsibility of Buyer.
F. The Offer tv Buy is contingent upon receipt of approvals required from the laws
Department of'l'ransportation for access onto the Northwest Arterial and from. the Army
Corps of Engineers to accommodate wetland mitigation.
C.:~ll terms and conditions of this Offer to Purchase will survive said closing
PREPARED BY: IIW ENGINEERS & SURVEYORS P.C, 4155 PENNSYLVANIA AVE. OuAUnuF inwn ins; ~~ a~c_owew
EXHIBIT A
PARCEL IN LOT 2, DUBUQUE INDUSTRIAL CENTER
13TH ADDITION IN THE CITY OF DUBUQUE, IOWA
LOT 1-2, J
DUBUQUE Q
/
INDUSTRIAL ~
CENTER
~
FIFTH
LOT 1,
DDI110
~
DUBUQUE Q
INDUSTRIAL
0
Q CENTER
11TH F--
O I ADDITION
LOT 1, DUBUQUE - -
INDUSTRIAL CENTER W
FIFTH ADDITION J O
W Z
Z LOT 2
¢ ,
I
(~ LOT 1-2-2,
DUBUQUE
INDUSTRIAL PROPOSED PARCEL
CENTER FIFTH APPROX. 1.8 ACRES
ADDITION
CHAVENELLE ROAD ,'
LOT 1, DUBUQUE ~
INDUSTRIAL CENTER /~ ~
13TH ADDITION ~~ P
GO G~~ \~~O
DUBUQUE ~\F~G
INDUSTRIAL-CENTER _ / ~ G QP
EIGHTH ADDITION
GRAPHIC SCALE
0 500 1000
~-
1 "= 500'
DRAWING MAY HAVE BEEN REDUCED
IIW ENGINEERS &
SURVEYORS, P.C.
INTEGRITY'. EXPERTISE. SOLLTIONS.
DUBUQUE. IA HAZEL GREEN. WI
41SS PENNSYLVANIA AVE. DUBLJQi1E IA 5?(10?
VOICE (563) 556-?464 F'AX (563) 556.7&11
NORTH
DRAWN ARC PLAT NO.
CHECKED WAC PROJ. NO. 07026-01
DATE 06-08-07 SHEET 1 of 1
P: \07\026\026-01 \DRAWINGS\07026-01 EXHIBIT