East Dubuque Savings Bank Agreement for 911 High Bluff Street Copyright 2014
City of Dubuque Consent Items # 9.
ITEM TITLE: East Dubuque Savings Bank Agreement for 911 High Bluff Street
SUMMARY: City Manager recommending approval of an agreement between the City
and East Dubuque Savings Bank for liens against property at 911 High
Bluff Street related to emergency repairs of the retaining wall.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ 911 High Bluff Street Agreement with East Dubuque Savings Bank-MVM City Manager Memo
Memo
❑ Staff Memo Staff Memo
❑ Agreement Supporting Documentation
THE CITY OF Dubuque
U E I
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: East Dubuque Savings Bank Agreement for 911 High Bluff Street
DATE: October 26, 2015
In October 2008, the City Council authorized emergency repairs to a retaining wall on
private property behind 911 High Bluff and street pavement of Thomas Place. This
project was necessitated due to the impending collapse of the private retaining wall
endangering the private residence and also the nearby street pavement. The property
owner of 911 High Bluff Street was notified by the City that it was proceeding with the
repair due to the property owner's failure to complete the work in a timely manner and
the property owner would be assessed for the work.
In this particular case where the wall serves both a private and public purpose, the wall
costs were divided 50/50 between the City and the abutting private property owner as the
wall supports the city street (public purpose) and allows the house to be located deep on
the lot (private purpose).
The property owner's share of the private assessment was $44,637.40 and was assessed
in late 2014.
The City was contacted by East Dubuque Savings Bank (EDSB) earlier in 2015 to
discuss the property and the assessment. EDSB, which holds the mortgage for the
property, disputed the valuation of the property for purposes of the assessment.
Additionally, since the assessment the property owners stopped paying the mortgage to
EDSB and are not living in the property. EDSB was evaluating options, including
foreclosure.
In order to avoid litigation over the valuation of the property the parties determined to reach
a negotiated outcome. The parties have agreed EDSB will foreclose on the property.
Foreclosure doesn't foreclose the City's assessment so the parties have agreed as to the
disposition of each outstanding lien following foreclosure. Upon the sale of the Real Estate,
whether before foreclosure or at sheriff's sale, the net proceeds, after deducting agreed
upon EDSB expenses, will be divided equally between EDSB and the City. As part of a
sale transaction both EDSB and the City will release liens against the property.
City Attorney Crenna Brumwell recommends City Council approval of an agreement with
EDSB regarding 911 High Bluff Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen'�
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Crenna Brumwell, Assistant City Attorney
2
THE CITY OF
DUB E EMORANDUM
Masterpiece on the Mississippi
r
CRENNA M . BRUMWELL , SQ.
ASSISTANT CITY ATTORNEY
To: Michael C. Van Milligen, City Manager
DATE: October 21, 2015
RE: East Dubuque Savings Bank agreement for 911 High Bluff Street
Background
In October 2008, the City Council authorized emergency repairs to a retaining wall on
private property behind 911 High Bluff and street pavement of Thomas Place. This
project was necessitated due to the impending collapse of the private retaining wall
endangering the private residence and also the nearby street pavement. The property
owner of 911 High Bluff Street was notified by the City that it was proceeding with the
repair due to the property owner's failure to complete the work in a timely manner and
the property owner would be assessed for the work.
The 911 High Bluff Retaining Wall Repair Project was completed at a cost of
$139,739.23.
In this particular case where the wall serves both a private and public purpose, the wall
costs were divided 50/50 between the City and the abutting private property owner as
the wall supports the city street (public purpose) and allows the house to be located
deep on the lot (private purpose).
The property owner's share of the private assessment was $44,637.40 and was
assessed in late 2014.
The City was contacted by East Dubuque Savings Bank (EDSB) earlier in 2015 to
discuss the property and the assessment. EDSB, which holds the mortgage for the
property, disputed the valuation of the property for purposes of the assessment.
Additionally, since the assessment the property owners stopped paying the mortgage to
EDSB and are not living in the property. EDSB was evaluating options, including
foreclosure, and asked the City for a meeting for discussion.
City staff met with EDSB representatives and attorney Brian Kane. The uniqueness of
this situation was discussed as well as the best possible outcome for EDSB and the
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)589-4381 /FAx (563)583-1040/EMAIL cbrumwel@cityofdubuque.org
City. EDSB has a reduced likelihood of foreclosing if there will be no recovery on the
outstanding mortgage. If EDSB does not foreclose the property will deteriorate into a
blight on the neighborhood. Both parties have a vested interest in resolving the matter.
In order to avoid litigation over the valuation of the property the parties determined to
reach a negotiated outcome. The parties have agreed EDSB will foreclose on the
property. Foreclosure doesn't foreclose the City's assessment so the parties have
agreed as to the disposition of each outstanding lien following foreclosure. Upon the
sale of the Real Estate, whether before foreclosure or at sheriff's sale, the net proceeds,
after deducting agreed upon EDSB expenses, will be divided equally between EDSB
and the City. As part of a sale transaction both EDSB and the City will release liens
against the property.
Under ordinary circumstances the City would not be performing an emergency repair
with such an expense and complicated circumstances but would explore other options,
for example purchasing and deconstructing a property followed by grading for the
roadway. However, the circumstances at 911 High Bluff Street precluded any such
exploration as time was of the essence.
It is not routine for the City to be in such a position and it is hopefully unlikely in the
future. The enclosed agreement, wherein neither party is made whole, allows the City
to be satisfied the resolution is the best possible outcome under the circumstances.
Recommendation
I have reviewed the agreement provided by the attorneys for EDSB; I am satisfied the
agreement encompasses the agreed upon terms and recommend the agreement is
presented to the Mayor and City Council for approval.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)589-4381 /FAx (563)583-1040/EMAIL cbrumwel@cityofdubuque.org
Masterpiece on the Mississippi
MEMORANDUM
CRENNA M. BRUMWELL, ESQ.
ASSISTANT CITY ATTORNEY
To: Kevin Firnstahl
City Clerk
DATE: November 23, 2015
6\6
RE: East Dubuque Savings Bank (911 High Bluff Street)
Attached for your files is the following original document:
1. Agreement by and between East Dubuque Savings Bank and the City of
Dubuque related to 911 High Bluff Street.
No further action on your part is necessary and our office will retain a copy of this
document.
Thank you.
CMB:jmg
Attachment
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org
AGREEMENT
This Agreement is made this 2nd day of November , 2015, by and between
East Dubuque Savings Bank ("EDSB") and the City of Dubuque, Iowa (the "City").
RECITALS
A. EDSB has a mortgage encumbering real estate owned by Christopher J. Blakeman
and Heather M. Haley, locally known as 911 High Bluff Street, Dubuque, IA
52001, and legally described as follows:
Lots 42 and 43, in "Hoopers Addition to the City of Dubuque, IA.
1852" in the City of Dubuque, Iowa, according to the recorded plat
thereof
(the "Real Estate").
B. EDSB's mortgage was filed June 29, 2007 as Instrument No. 2007-9765 in the
records of the Dubuque County Recorder (the "Mortgage").
C. The City has a lien on the Real. Estate related to an assessment for retaining wall
repair on the Real Estate (the "Assessment").
D. EDSB intends to foreclose the Mortgage.
E. Any foreclosure action would not foreclose the Assessment.
F. The parties have reached an agreement with respect to their respective liens upon
and rights to the Real Estate.
G. The parties desire to reduce their agreement to writing.
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree upon the following mutual terms and conditions:
AGREEMENT
1. Upon the sale of the Real Estate (whether such sale be (a) prior to foreclosure, (b)
at sheriff's sale to a third party or (c) by EDSB after the sheriff's sale), the net proceeds due as a
result of such sale, after deducting EDSB's expenses for abstracting, transfer tax, attorney's fees
(not to exceed $2,500), court costs, real estate tax proration, protective disbursements under the
Mortgage (e.g., real estate taxes, insurance, etc.) and realtor commission, as applicable, shall be
divided equally between EDSB and the City. As part of any such sale, upon distribution of such
proceeds, EDSB shall release the Mortgage and the City shall show the Assessment as fully
satisfied.
2. This Agreement shall be binding on the parties hereto and their respective
successors in interest and assigns. This Agreement shall be governed by and construed in
accordance with the laws of the State of Iowa.
EAST DUBUQUE SAVINGS BANK CITY OF D jUQUE, IOWA