Vacate and Sale of Undeveloped Alley at Sycamore StreetTHE CITY OF
DUB' E MEMORANDUM
Masterpiece on the Mississippi
September 10, 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 that a public hearing be
set for October 1, 2007 to consider the sale of the undeveloped alley 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, 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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Michae C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
September 6, 2007
TO: Michael Van Milligen, City Manager ~
,;
FROM: David J. Heiar, Economic Development Director ~~~
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) and are 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 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.
RESOLUTION NO. 481-07
RESOLUTION OF INTENT TO DISPOSE OF CITY INTEREST IN LOT 378A OF
EAST DUBUQUE NO. 2 IN THE CITY OF DUBUQUE, DUBUQUE COUNTY,
IOWA
Whereas, SB Development, LLC have requested the disposal of a vacated alley
platted as Lot 378A of East Dubuque No. 2; and
Whereas, IIW Engineering and Surveyors, PC has prepared and will record a plat
showing the vacated alley and assigned lot number thereto, which is known and
described as Lot 378A of East Dubuque No. 2 in the City of Dubuque, Dubuque County,
Iowa, in the Office of the Dubuque County Recorder.
Whereas, 378A of East Dubuque No. 2 is a public alley planned for vacation by
the City of Dubuque.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque intends to dispose of its interest in Lot 378A
of East Dubuque No. 2 in the City of Dubuque, Dubuque County, Iowa.
Section 2. That the conveyance of Lot 378A of East Dubuque No. 2 in the City of
Dubuque, Dubuque County, Iowa, to SB Development, LLC be contingent upon the
payment of publication and filing fees and $1.00 and other considerations.
Section 3. That the City Clerk be and is hereby authorized and directed to cause
a notice of intent to dispose of said real estate to be published in the manner as
prescribed by law.
Passed, approved and adopted this 17th day of September, 2007.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
F:\USERS1DHeiarWlley vacation FDL ite\Fonner Pack site Alley Vacate -Intent to Dispose
Resolution.doc
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 October
1, 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\DHeiarWlley vacation FDL Site\Vacate Alley set for ph.doc
AGREEMENT TO VACATE ALLEY
This Agreement to Vacate Alley ("Agreement") is made and entered into this
day of September, 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 legally described 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\DHeiarlAlley vacation FDL Site\SB Development-City of Dubuque Vacate Agr.doc
9/7/07
PREPARED BY: IIW ENGINEERS & SURVEYORS P. C, 4155 PENNSYLVANIA AVE, DUBUQUE, IOWA, (563) 556-2464
PLAT OF SURVEY
LOT 378A OF EAST DUBUQUE N0. 2
IN THE CITY OF DUBUQUE, IOWA
DESCRIPTION: THE VACATION OF A 20-FOOT WIDE ~ /
ALLEY BETWEEN EAST 15TH STREET AND EAST / ~ / '
16TH STREET AND ADJACENT TO LOTS 378-382 /~~ ~,
AND LOTS 413-417 OF EAST DUBUQUE N0. 2 /'~ LOT 378A
IN THE CITY OF DUBUQUE, IOWA /', N~626 ~9 ~ 1/\ 5,147 SQ. FT.
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PLAT BOUNDARY
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( ) RECORD INFORMATION
R.O.W. RIGHT-OF-WAY
PROPRIETOR: CITY OF DUBUQUE
SURVEYED FOR: CITY OF DUBUQUE
DATE OF SURVEY: SEPT. 2007
TOTAL AREA SURVEYED: 5,147 SO. FT
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GRAPHIC SCALE
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DRAWING MAY HAVE BEEN REDUCED
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THIS SURVEY IS SUBJECT TO EASEMENTS,
RESERVATIONS, RESTRICTIONS AND
RIGHTS-OF-WAY OF RECORD AND NOT OF
RECORD.
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