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Acquisition by Eminent Domain of 625 Gillespie StreetTHE CITY OF DAB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fred Frommelt Correspondence DATE: December 3, 2007 Dubuque All-AmericaCity 2007 Mr. Fred Frommelt submitted a letter about tonight's Consent Agenda #12 "Acquisition of Property by Eminent Domain." This relates to the last piece of property needed to expand the 32"d Street Detention Basin. This home is owned by an estate, not Mr. Fred Frommelt. City Attorney Barry Lindahl is currently reviewing acounter-offer from the attorney for the estate that would avoid condemnation, but result in the house being acquired and removed. Mr. Frommelt's proposal to have the house remain has been examined in the past by the Engineering Department and is not the recommended course of action. I respectfully recommend that the Mayor and City Council approve the agenda item. This still allows Barry Lindahl the opportunity to negotiate a purchase. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jeanne Schneider, City Clerk THE CITY OF M E M O R A N D U M DUB E Masterpiece on the Mississippi December 3, 2007 TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Civil Engineer ~~,~, SUBJECT: W32nd Street Detention Basin Project, Estate of Arthur P. Frommelt at 625 Gillespie Street INTRODUCTION The purpose of this memo is to present the reasons behind the Engineering Department's recommendation to acquire and deconstruct the Arthur P. Frommelt Estate at 625 Gillespie Street. BACKGROUND In December of 2001, the City Council formally adopted the Drainage Basin Master Plan (DBMP) prepared by HDR Engineering (Omaha, NE). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. The DBMP includes the expansion of the W. 32"d Street Detention Basin which requires the purchase of fifteen (15) properties. In April of 2002, the City sent letter to all of the property owners, including Mr. Aurthur Frommelt, indicating that "although the exact configuration of the modified W. 32nd basin is yet to be determined, there is a significant likelihood that the modifications will require the removal of (his) home. In February of 2005, the City Council authorized the hiring of MSA Professional Services to design the improvements to the detention basin. DISCUSSION The final design of the improvements is complete pending final approval and the issuance of permits from the US Army Corp of Engineers and the Iowa Department of Natural Resources. Following the issuance of both permits expected in the next few weeks, the project will be on hold until the last two properties, the Anderson property and the Frommelt property, are acquired. In late July, Engineering met with Mr. Fred Frommelt to discuss the City's purchase of the Frommelt Estate. In order to create the storage volume desired, Fink Street is to be removed. While the Frommelt property is unique in that the footprint of the house will remain unchanged as a result of the grading to increase the storage capacity in the basin, both utility and physical access will be eliminated making it inhabitable. At Mr. Frommelt's request, Engineering agreed to look closer at the design to see if the existing access could be preserved. After spending a considerable amount of time, Engineering concluded that leaving Fink Street would reduce the storage volume by about 155,000 cubic feet. In addition, there would be additional costs: the bridge/culvert under Fink Street would need to be replaced as the detention basin floor is proposed lower that its footings. The existing sanitary sewer that serves the Frommelt property would need to be modified. Finally, the entire design of the project would need to be revised and re-submitted to the various permitting authority. A sixty to ninety day review period can be expected. Engineering concluded that the cost of the changes that Mr. Fred Frommelt was asking for would result in a higher project cost -even taking into consideration the savings of not having to purchase the Frommelt property -and would provide less benefit to the citizens of Dubuque. This position was presented to Mr. Frommelt on September 9, 2007. Mr. Frommelt then asked if just a driveway at the basin floor could be fashioned to provide access to the Frommelt house so that storage volume would not be lost. He understood that the driveway would be flooded periodically. There are several issues with allowing a driveway through the publicly owned flood control facility. Public safety is the paramount concern for a civil engineer. And on those grounds alone, the Engineering Department recommends against such a condition..What will be in place to prevent a citizen from turning down the Frommelt drive at 2:00 am when the driveway is under five feet of water? While a gate could be installed the safety of the public would depend on whether someone remembers to keep the gate closed five, ten years from now. The City's consultant cited that they have "liability concerns about the propeal and (MSA) being involved." In addition to those safety concerns, other issues are: 1) Emergency access would not be available to the Frommelt property in the middle of a heavy rain; 2) The existing Frommelt property does not have space for an emergency vehicle to turn around; 3) According to the City's consultant, the driveway could be inundated for many hours; 4) The driveway would be subject to erosion due to the water flowing over it. This would wash into the basin and necessitate rebuilding/regarding the driveway periodically; and 5) The project design would need to redone for construction documents and permitting issues as things like additional culverts under the driveway would need to be considered; RECOMMENDATION Engineering believes that we have tried to overcome and address all of the issues that Mr. Frommelt raised in his recent letter to the City Council. Engineering does not recommend allowing a private drivewady through the City's public stormwater management facility that is the W. 32" Street Detention Basin. Engineering recommends that the City proceed with the purchase of the Frommelt Estate for the W. 32"d Street Detention Basin project. Attach. CC: Barry Lindahl, City Attorney Gus Psihoyos, City Engineer Bob Schoesl, Assistant City Engineer Fred Frommelt 625 Gillespie Street Dubuque, IA 52ooi To Whom It May Concern: I do not wish to stand in the way of progress and this is not a contest of egos but a search for what is right. I would like to think that all of the possibilities have been exhausted and I am convinced that my stand to keep the Frommelt residence would not put the City of Dubuque in any jeopardy. From my point of view, an access road which basically is already there, lowered flush with the bottom of the reservoir would not take any volume displacement away from the project and the nipple of land which the residence is on is small and can be made by digging the area a few inches deeper. This all can be validated by putting new numbers into an already existing program that the civil engineer used to conceive the project. I would be willing to pay for the retooling and validating of what I perceive to be the obvious. Allowing the access road would divide the project into three sections. West of the Frommelt residence, will be a collecting silt pond, most the water would collect here. It is also my understanding that the road would ever be covered with water, it would only be for a short period of time due to the silt pond collecting the water and with the pond's controlled release. The middle area of this land could potentially be a green space which could be used for an assortment of things like a dog park, sports field, etc. Unlike the present dog park, it could be furnished with facilities going to and from the Frommelt residence. The access road could be moved East and make the green area even larger. The money saved from not purchasing the Frommelt Residence could be used to make any of these improvements. So, what I am asking for is a complete exhausted look into preserving the Frommelt residence and make a green space for the people of Dubuque to enjoy for decades to come and to preserve a little history of Dubuque (the Frommelt residence was built in the 186o's). I am further making these requests because I have been in and out of the Frommelt residence for 56 years and in would be nearly impossible to duplicate the space that surrounds this residence. Thank you for considering my request. Sincerely, rn - / ~-~`' Fred Frommelt ~'I '~~~~ngnCl h t ~Z~ Wd 0~ RON LO CJ.~i1s~~~~! THE CITY OF Dubuque -~ I~fLTB E "'~ Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Acquisition of Real Property Owned by the Estate of Arthur P. Frommelt for the 32nd Street Detention Basin Project DATE: November 27, 2007 City Attorney Barry Lindahl is recommending adoption of an ordinance authorizing the commencement of eminent domain proceedings for the acquisition of the property owned by the Estate of Arthur P. Frommelt at 625 Gillespie Street. The Housing and Community Development Department has been negotiating with the estate of Art Frommelt, owner of the property at 625 Gillespie Street, for the purchase of that property for the 32"d Street Detention Basin. Because the Housing and Community Development Department was unable to reach an agreement for the purchase of the property, on August 2, 2007, Rehabilitation Supervisor Joleen Patterson recommended that the City begin condemnation proceedings. The property was appraised at $120,900 and by Resolution No. 410-07, adopted by the City Council on August 6, 2007, the City Council established the fair market value of the property at $120,900. On August 20, 2007, the City Attorney's Office offered to purchase the property for $120, 900. The City has been unable to complete a purchase of the property. I concur with the recommendation and respectfully request Mayor and City Council approval. ,'! V ;' ~v'~! Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager THE CTTY OF DUB E Masterpiece on the~ssissippi BARRY LIN AWL CITY ATTO NEY MEMORANDUM To: \ Michael C. Van Milligen City Manager DATE: November 26, 2007 RE: Acquisition of Real Property Owned by the Estate of Arthur P. Frommelt for the 32"d Street Detention Basin Project The Housing & Community Development Department has been negotiating with the estate of Art Frommelt, owner of the property at 625 Gillespie Street, for the purchase of that property for the 32"d Street Detention Basin. Because the Housing & Community Development Department was unable to reach an agreement for the purchase of the property, on August 2, 2007, Joleen Patterson recommended that the City begin condemnation proceedings. The property was appraised at $120,900 and by Resolution No. 410-07, adopted by the City Council on August 6, 2007. The City Council established the fair market value of the property at $120,900. On August 20, 2007, the City Attorney's Office offered to purchase the property for $120, 900. We have been unable to complete a purchase of the property. It is therefore my recommendation that the City Council adopt the enclosed ordinance authorizing the commencement of eminent domain proceedings for the acquisition of the property. On November 9, 2007, a Notice of Intent to acquire the property by eminent domain was sent to the attorney for the estate and the attorney for one of the family members who is living in the residence on the property indicating that the resolution authorizing the commencement of eminent domain proceedings would be on the City Council agenda for December 3, 2007, as required by the Iowa Code. A copy of the Notice is attached. BAL:tIs Attachment cc: David Harris, Housing & Community Development Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org NOTICE OF INTENT TO APPROVE ACQUISITION OF PROPERTY BY EMINENT DOMAIN To: The Estate of Arthur P. Frommelt c/o Ron Besch 124 S. Riverview P.O. Box 21 Bellevue IA 52031-0021 Fred Frommelt c/o James Roth 1400 University Dubuque IA 52001 You are hereby notified that the City Council of the City of Dubuque, Iowa will meet on the 3~d day of December, 2007, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, to consider the adoption of a resolution, a copy of which is attached hereto, authorizing the City to acquire the following property by eminent domain: Lots 11, 12, 13, 14, and 15 Finks Subdivision in the City of Dubuque, Iowa You have the right to attend the meeting and to voice objection to the proposed acquisition of the property. Just as the law grants certain entities the right to acquire private property, you as the owner of property have certain rights. You have the right to: Receive just compensation for the taking of property. (Iowa Const., Article I, Section 18) An offer to purchase which may not be less than the lowest appraisal of the fair market value of the property. (Iowa Code §§ 66.45, 6854) Receive a copy of the appraisal, if an appraisal is required, upon which the acquiring agency's determination of just compensation is based not less than 10 days before being contacted by the acquiring agency's acquisition agent. (Iowa Code §66.45) When an appraisal is required, an opportunity to accompany at least one appraiser of the acquiring agency who appraises your property. (Iowa Code §66.54) Participate in good faith negotiations with the acquiring agency before the acquiring agency begins condemnation proceedings. (Iowa Code §66.3(1)) If you cannot agree on a purchase price with the acquiring agency, a determination of just compensation by an impartial compensation commission and the right to appeal its award to district court. (Iowa Code §§ 66.4, 66.7, and 66.18) A review by the compensation commission of the necessity for the condemnation if your property is agricultural land being condemned for industry; (Iowa Code § 6B.4A) Payment of the agreed upon purchase price, or if condemned, a deposit of the compensation commission award before you are required to surrender possession of the property. (Iowa Code §§ 66.25 and 66.54(11)) Reimbursement for expenses incidental to transferring title to the acquiring agency. (Iowa Code §§ 66.33 and 66.54(10)) Reimbursement of certain litigation expenses: (1) if the award of the compensation commissioners exceeds 110 percent of the acquiring agency's final offer before condemnation; and (2) if the award on appeal in court is more than the compensation commissioner's award. (Iowa Code § 66.33) At least 90 days written notice to vacate. occupied property. (Iowa Code § 66.54(4)) Relocation services and payments, if you are eligible to receive them, and the right to appeal your eligibility for and amount of payments. (Iowa Code §316.9) The rights set out in this Notice are not claimed to be a full and complete list or explanation of an owner's rights under the law. They are derived from Iowa Code Chapters 6A, 6B and 316. For a more thorough presentation of an owner's rights, you should refer directly to the Iowa Code or contact an attorney of your choice. Dated: ~~~ y/f' n S. Firnstahl, As is stant City Clerk Preparers Barry A. lrndahl Suite 330 Harbor View Place Dubuque, IA 52001 (563) 5834113 RESOLUTION NO. 572-07 AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS FOR THE ACQUISITION OF CERTAIN REAL PROPERTY OWNED BY THE ESTATE OF ARTHUR P. FOMMELT IN THE CITY OF DUBUQUE, IOWA FOR THE 32ND STREET DETENTION BASIN PROJECT STATION WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by the Estate of Arthur P. Frommelt (Owner), legally described as follows (the Property): Lots 11, 12, 13, 14, and 15 Finks Subdivision in the City of Dubuque, Iowa as shown on Exhibit A attached hereto for the purpose of expanding the 32"`' Street Detention Basin; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City may not make an offer to purchase the Property which is less than the fair market value City has established for the Property; AND WHEREAS, City caused an appraisal of the Property to be made and the appraised value of the Property is $120,900.00; AND WHEREAS, City has made an offer to purchase the Property for not less than its fair market value; and Whereas, City has been unable after good faith negotiations to reach an agreement with Owner for the acquisition of the Property. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, AS FOLLOWS: r Section 1. The City Manager and the City Attorney are hereby authorized to commence eminent domain proceedings for the acquisition of the Property and to take such further action as may be necessary for the acquisition of the Property. Passed, adopted and approved this 3rd day of December, 2007. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk THE CITY OF DuB E Masterpiece on the~{ssissippi BARRY LIN~AFVL' CITY ATTO NEY MEMORANDUM To: \ Michael C. Van Milligen City Manager DATE: November 26, 2007 RE: Acquisition of Real Property Owned by the Estate of Arthur P. Frommelt for the 32"d Street Detention Basin Project The Housing & Community Development Department has been negotiating with the estate of Art Frommelt, owner of the property at 625 Gillespie Street, for the purchase of that property for the 32"d Street Detention Basin. Because the Housing & Community Development Department was unable to reach an agreement for the purchase of the property, on August 2, 2007, Joleen Patterson recommended that the City begin condemnation proceedings. The property was appraised at $120,900 and by Resolution No. 410-07, adopted by the City Council on August 6, 2007. The City Council established the fair market value of the property at $120,900. On August 20, 2007, the City Attorney's Office offered to purchase the property for $120,900. We have been unable to complete a purchase of the property. It is therefore my recommendation that the City Council adopt the enclosed ordinance authorizing the commencement of eminent domain proceedings for the acquisition of the property. On November 9, 2007, a Notice of Intent to acquire the property by eminent domain was sent to the attorney for the estate and the attorney for one of the family members who is living in the residence on the property indicating that the resolution authorizing the commencement of eminent domain proceedings would be on the City Council agenda for December 3, 2007, as required by the Iowa Code. A copy of the Notice is attached. BAL:tIs Attachment cc: David Harris, Housing & Community Development Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org NOTICE OF INTENT TO APPROVE ACQUISITION OF PROPERTY BY EMINENT DOMAIN To: The Estate of Arthur P. Frommelt c/o Ron Besch 124 S. Riverview P.O. Box 21 Bellevue IA 52031-0021 Fred Frommelt c/o James Roth 1400 University Dubuque IA 52001 You are hereby notified that the City Council of the City of Dubuque, Iowa will meet on the 3~d day of December, 2007, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, to consider the adoption of a resolution, a copy of which is attached hereto, authorizing the City to acquire the following property by eminent domain: Lots 11, 12, 13, 14, and 15 Finks Subdivision in the City of Dubuque, Iowa You have the right to attend the meeting and to voice objection to the proposed acquisition of the property. Just as the law grants certain entities the right to acquire private property, you as the owner of property have certain rights. You have the right to: Receive just compensation for the taking of property. (Iowa Const., Article I, Section 18) An offer to purchase which may not be less than the lowest appraisal of the fair market value of the property. (Iowa Code §§ 66.45, 6654) Receive a copy of the appraisal, if an appraisal is required, upon which the acquiring agency's determination of just compensation is based not less than 10 days before being contacted by the acquiring agency's acquisition agent. (Iowa Code §66.45) When an appraisal is required, an opportunity to accompany at least one appraiser of the acquiring agency who appraises your property. (Iowa Code §68.54) Participate in good faith negotiations with the acquiring agency before the acquiring agency begins condemnation proceedings. (Iowa Code §66.3(1)) If you cannot agree on a purchase price with the acquiring agency, a determination of just compensation by an impartial compensation commission and the right to appeal its award to district court. (Iowa Code §§ 66.4, 66.7, and 66.18) A review by the compensation commission of the necessity for the condemnation if your property is agricultural land being condemned for industry; (Iowa Code § 6B.4A) Payment of the agreed upon purchase price, or if condemned, a deposit of the compensation commission award before you are required to surrender possession of the property. (Iowa Code §§ 66.25 and 66.54(11)) Reimbursement for expenses incidental to transferring title to the acquiring agency. (Iowa Code §§ 66.33 and 68.54(10)) Reimbursement of certain litigation expenses: (1) if the award of the compensation commissioners exceeds 110 percent of the acquiring agency's final offer before condemnation; and (2) if the award on appeal in court is more than the compensation commissioner's award. (Iowa Code § 66.33) At least 90 days written notice to vacate occupied property. (Iowa Code § 66.54{4)) Relocation services and payments, if you are eligible to receive them, and the right to appeal your eligibility for and amount of payments. (Iowa Code §316.9) The rights set out in this Notice are not claimed to be a full and complete list or explanation of an owner's rights under the law. They are derived from Iowa Code Chapters 6A, 6B and 316. For a more thorough presentation of an owner's rights, you should refer directly to the Iowa Code or contact an attorney of your choice. Dated: ~~~ ~/f~ n S. Firnstahl, As is stant City Clerk