Vacate and Sale of Undeveloped Alley_Sycamore St.THE CITY OF ~~
DLTB ~r ~ E MEMORANDUM
MasEer~iece nn the Mississippi
September 25, 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.
~~ ~~ /~._
Michael 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
Masterj~iece on the Mississippi
September 24, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: 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 161h 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:
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 following the public hearing on this matter that
the City Council approve the attached resolutions authorizing the vacation and sale of
the undeveloped alley shown on Exhibit A based on the terms of the attached
agreement.
Attachments
F:\USERS\DHeiarlAlley vacation FDL Site\memo approving vacation of alley.doc
Prepared by: David J. Heiar, City of Dubuque, 50 W. 13~' Street, Dubuque, IA 52001 (563) 589-4393
Returned to: David J. Heiar, City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 (563) 589-4393
RESOLUTION NO. 501-07
RESOLUTION VACATING AN ALLEY
Whereas, SB Development, LLC has requested the vacating of a portion of an
Alley; and
Whereas, IIW Engineers & Surveyors, PC has prepared and submitted to the
City Council a plat showing the vacated Alley and assigned lot number thereto, which
hereinafter shall be known and described as Lot 378A in the City of Dubuque, Dubuque
County, Iowa; and
Whereas, the City Council of the City of Dubuque, Iowa has determined that an
Alley is no longer required for public use, and vacating of said Alley, known as Lot 378A
of East Dubuque No. 2 in the City of Dubuque, Dubuque County, Iowa should be
approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the real estate described as Lot 378A of East Dubuque No. 2
in the City of Dubuque, Iowa, be and the same is hereby vacated.
Passed, approved and adopted this 1st day of October, 2007.
Attest:
Jeanne F. Schneider, CMC, City Clerk
Roy D. Buol, Mayor
F:\USERS\DHeiarWlley vacation FDL Site\Vacating Resolution.doc
Prepared by: David J. Heiar, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589-4393
Returned to: David J. Heiar, City of Dubuque, 50 W. 13th Street, Dubuque, Iowa (563) 589-4393
RESOLUTION NO. 502-07
RESOLUTION DISPOSING OF CITY INTEREST IN LOT 378A OF EAST DUBUQUE
NO. 2 IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA
Whereas, pursuant to resolution and published notice of time and place of
hearing, published in the Telegraph Herald, a newspaper of general circulation
published in the City of Dubuque, Iowa on this 21St day of September, 2007, the City
Council of the City of Dubuque, Iowa met on the 1St day of October, 2007, at 6:30 p.m.
in the Public Library Auditorium, 360 West 11 Street, Dubuque, Dubuque County, Iowa
to consider the proposal for the sale of real estate described as:
Lot 378A of East Dubuque No. 2 in the City of Dubuque, Dubuque County,
Iowa
Whereas, the City Council of the City of Dubuque, Iowa overruled any and all
objections, oral or written to the proposal to sell such real estate.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the sale of City of Dubuque real property described as
Lot 378A of East Dubuque No. 2 in the City of Dubuque, Dubuque County, Iowa in
the City of Dubuque, Dubuque County, Iowa, to SB Development, LLC be and the
same is hereby approved for the sum of $1 plus the cost of platting, publication,
filing fees, and other considerations. Conveyance shall be by Quit Claim Deed.
Section 2. That the Mayor be authorized and directed to execute a Quit Claim
Deed, and the City Clerk be and is hereby authorized and directed to deliver said deed
of conveyance to SB Development, LLC upon receipt of the purchase price in full.
Section 3. That the City Clerk be and is hereby authorized and directed to
record a certified copy of this resolution in the offices of the City Assessor, Dubuque
County Recorder and Dubuque County Auditor.
Passed, approved and adopted this 1st day of October, 2007.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
F:\USERS\DHeiarWlley vacation FDL Site\Deposing of City Interest Resolution.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 Ailev. 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
Esta#e; plus (iii) the "Additional Amount" as described below. The "Additional Amount"
shall mean $10,000 if the City exercises its rights to acquire the properly 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 Reai Esta#e pursuant to this Agreement shalt 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 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 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:IUSERS1DHeiarlAlley vacation FDL Site\SB Development-City of Dubuque Vacate Agr.doc
9/7/07
PREPARED BY: IIW ENGINEERS & SURVEYORS P.C, 4133 PENNSYLVANIA AVE. OUBVWE, IOWA, (363) 336-2464
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 /'' J
IN THE CITY OF DUBUQUE, IOWA LOT 378A
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LEGEND
PLAT BOUNDARY
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( ) RECORD INFORMATION
R.O.W. RIGHT-OF-WAY
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GRAPHIC SCALE
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DRAWING MAY HAVE BEEN REDUCED
PROPRIETOR: CITY OF DUBUQUE
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SURVEYED FOR: CI TH
SURVEY IS SUBJECT TO EASEMENTS,
TY OF DUBUQUE
DATE OF SURVEY: RESERVATIONS. RESTRICTIONS AND
SEPT. 2007
RIGHTS-OF-WAY OF RECORD AND NOT OF
TOTAL AREA SURVEYED: 5,147 SQ. FT. RECORD.
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