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Bee Branch Creek Restoration Project Property Acquisition_2496 Washington-Morrison Bros. Copyright 2014 City of Dubuque Action Items # 6. ITEM TITLE: Bee Branch Creek Restoration Project Property Acquisition -2496 Washington Street SUMMARY: City Manager recommending the City Council establish the fair market value of the property owned by Morrison Brothers on Washington Street between E. 24th Street and E. 25th Street, authorize the City Manager to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project, and approve authorization to acquire the property through eminent domain proceedings should negotiations fail. RESOLUTION Establishing the fair market value and authorizing the acquisition by Eminent Domain of Certain Real Property owned by Morrison Brothers in the City of Dubuque, Iowa SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Bee Branch Creek Property Acquisition-MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Attachment Supporting Documentation Attachment B Supporting Documentation THE CITY OF Dubuque U E I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Creek Restoration, Property Acquisition DATE: December 15, 2015 City Engineer Gus Psihoyos recommends the City Council establish the fair market value of the property owned by Morrison Brothers on Washington Street between E. 24th Street and E. 25th Street at the appraised value of$98,000, and authorize the City Manager to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. Further authorization is sought to acquire the property through eminent domain proceedings should negotiations fail. In December of 2001, the City Council formally adopted the Drainage Basin Master Plan prepared by HDR Engineering. Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. Acquisition of the Property will allow for the complete removal of Washington Street between 24th and 25th Street and the removal of the alley that runs from 24th to 25th Street between Washington Street and Elm Street, all of which would result in the elimination of more impervious land cover than what would have been achieved through the reconstruction of the alley as a "green", pervious alley. This would also result in the elimination of the continued costs associated with maintaining the paved street and alley surfaces. Additional cost savings would also be realized in that soil excavated as part of the creek construction project could be placed as fill over Washington Street between 24th and 25th Street versus hauling the material off site. Ultimately, following completion of the Bee Branch Creek Restoration Project, the additional green, pervious green space created by the removal of the acquired properties would be utilized to expand the limits and function of Comiskey Park. Acquiring the Property would result in an estimated $70,000.00 in savings to the City. This is based on $350,000 in savings realized by eliminating the green alley and public utilities improvements that would serve the lots along Washington Street offset by the costs associated with purchasing and clearing the Morrison Brothers property and the recently acquired Chamberlain properties on Washington Street between 24th and 25th Streets. 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 Gus Psihoyos, City Engineer 2 THE CITY OFC _ DtibugLLe r-� 7H� DUB L All-AmericaCity 11111'r Masterpiece ori the Mississippi 211117-2.011 ,X1113 TO: Michael C. Van Milligen, City Manage FROM: Gus Psihoyos, City Engineer DATE: December 14, 2015 SUBJECT: Bee Branch Creek Restoration, Property Acquisition INTRODUCTION The purpose of this memorandum is to establish the fair market value of the property owned by Morrison Brothers on Washington Street between E. 24th Street and E. 25th Street and seek authorization for the City Manager to begin negotiations to acquire the property required for the Bee Branch Creek Restoration Project. Further authorization is sought to acquire the property through eminent domain proceedings should negotiations fail. BACKGROUND In December of 2001, the City Council formally adopted the Drainage Basin Master Plan (DBMP) prepared by HDR Engineering (Omaha, Nebraska). Based on the study, approximately 1,150 homes and businesses in the Bee Branch watershed are at risk of flood damage. In December of 2004, the City Council established the alignment for the Bee Branch Creek Restoration Project, from 15th and Sycamore Street to 24th and Washington Street, establishing the properties to be acquired for the Bee Branch Creek Restoration Project. In May of 2011 the City Council authorized the purchase of four additional properties at the confluence of Comiskey Park, the Heritage Trail, and the Bee Branch Project. It was important to address the safety of pedestrians that will travel between the three attractions. The additional property was required to create a safer, attractive connection between Comiskey Park, the Heritage Trail, and the linear park that is the Bee Branch Creek Restoration Project. In August of 2015, the City Council adopted Resolution 291-15 authorizing the acquisition of 2442-2446 Washington Street and 2450 Washington Street for the Bee Branch Creek Restoration Project. DISCUSSION The Bee Branch Creek Restoration Project (Phase 7 of the Bee Branch Watershed Flood Mitigation Project) includes improvements north of E. 24th Street at Washington Street adjacent to Comiskey Park. See Attachment A. One of the Upper Bee Branch Creek Restoration Project objectives is to create a safer, attractive connection between Comiskey Park, the Heritage Trail, and the linear park that will result from the Bee Branch Creek Restoration Project. In addition, the scope of the larger Bee Branch Watershed Flood Mitigation Project includes the conversion of the alley between Washington Street and Elm Street that runs from E. 24th to E. 25th Street into a green alley, including the reconstruction of the sanitary sewer and water main. The estimated cost of the alley improvements (pervious pavement system, sanitary sewer, and water main), is $350,000.00. The reconstructed alley, sanitary sewer, and water main will provide service to just one vacant house, 2496 Washington Street, and six vacant lots (the Property) owned by Morrison Brothers. Therefore, it is prudent to consider acquiring the Property valued at $98,000 instead of expending $350,000 to construct the infrastructure improvements that would serve the Property. Acquiring the Property will result in more space available to the contractors to store materials and equipment, maneuver equipment, and construct the improvements as outlined in the plans. It will allow the public and area residents more use of streets along the project corridor. Because of the narrow project corridor, the construction contractors are currently competing with local residents for off-street parking spaces. The contractors are using areas within the footprint of the project as much as they can. But as the construction moves towards completion, this will shrink so that their need to utilize adjacent streets will increase, especially at E. 24th Street. Acquisition of the Property will allow for the complete removal of Washington Street between 24th and 25th Street and the removal of the alley that runs from 24th to 25th Street between Washington Street and Elm Street, all of which would result in the elimination of more impervious land cover than what would have been achieved through the reconstruction of the alley as a "green", pervious alley. This would also result in the elimination of the continued costs associated with maintaining the paved street and alley surfaces. Additional cost savings would also realized in that soil excavated as part of the creek construction project could be placed as fill over Washington Street between 24th and 25th Street versus hauling the material off site. Ultimately, following completion of the Bee Branch Creek Restoration Project, the additional green, pervious green space created by the removal of the acquired properties would be utilized to expand the limits and function of Comiskey Park. See Attachment B. For these reasons, it is in the City's best interest to purchase the property owned by Morrison Brothers along Washington Street between 24th and 25th Street. 2 Based on the appraisal commissioned by the City, the value of the Property, legally described as Lots 13, 14, 15, 16, 17, N. Y2 18 and 20 of O. S. Langworthy's Addition, Dubuque, Iowa, is $98,000.00. RECOMMENDATION I recommend that the City establish the fair market value of 2496 Washington Street and six vacant lots along the same street between E. 24th and E. 25th Streets at the appraised value of $98,000.00 and that the City Manager begin negotiations with the property owner. And should negotiations fail, I recommend that the City acquire the property through eminent domain proceedings. BUDGET IMPACT The FY2016 Capital Improvements Program (CIP) Budget includes $3,939,820 for the acquisition of property for the Bee Branch Creek Restoration Project (CIP# 7201654). Acquiring the Property would result in an estimated $70,000.00 in savings to the City. This is based on $350,000 in savings realized by eliminating the green alley and public utilities improvements that would serve the lots along Washington Street offset by the costs associated with purchasing and clearing the Morrison Brothers property and the recently acquired Chamberlain properties on Washington Street between 24th and 25th Streets. REQUESTED ACTION I respectfully request that the City Council adopt the attached Resolution: 1. Establishing the fair market value of the Property to be $98,000.00; 2. Authorizing the City Manager to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this resolution; and 3. Authorizing the City Manager to acquire the property through eminent domain should negotiations fail. Attach. Prepared by Deron Muehring cc: Barry Lindahl, City Attorney Maureen Quann, Assistant City Attorney Steve Brown, Project Manager Deron Muehring, Civil Engineer II 3 RESOLUTION NO. 440-15 ESTABLISHING THE FAIR MARKET VALUE AND AUTHORIZING THE ACQUISITION BY EMINENT DOMAIN OF CERTAIN REAL PROPERTY OWNED BY MORRISON BROTHERS IN THE CITY OF DUBUQUE, IOWA Whereas, the City of Dubuque. (City) intends to acquire certain real property owned by Morrison Brothers (Owner), at 2496 Washington Street and six lots along the same block legally described as follows (the Property): Lots 13, 14, 15, 16, 17, N. '/2 18 and 20 of O. S. Langworthy's Addition, all in the City of Dubuque, Dubuque County, Iowa for the purpose of expanding the limits and function of a City park, Comiskey Park; and Whereas, Iowa law requires that City must make a good faith effort to negotiate with the Owner to purchase the Property before proceeding with condemnation; and Whereas, City has caused an appraisal of the property to be made and the appraised value of the property is $98,000.00; and Whereas, the City Council now desires to establish the fair market value of the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The fair market value of the Property is hereby established to be $98,000.00. Section 2. The City Manager is hereby authorized to commence negotiations with the Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not Tess than the fair market value established by this resolution. Section 3. The City Manager is hereby authorized to commence proceedings for the acquisition of the Property by eminent domain should negotiations fail. Passed, approved and adopted this 21st day of December, 2015 Roy D. Buol, Mayor Attest: Kevin FirnstahI, City Clerk / 2496 Washington `. NOW MORRISON BROTHERS - I 11 MORRISON BROTHERS K MORRISON BROTHERS `` � I + MORRISON BROTHERS } i„ MORRISON BROTHERS ' a a>v MORRISON BROTHERS '- CITY OF DUBUQUE low l t\ OFDUBUQUE Comiskey CITY OF DUBUQUE Park i MORRISON BROTHERS it Bee Branch IhI N/ Creek e. 'IHE CFIY OF DU ATTACHMENT B DuB E '�II�I Masterpiece or,the Mississippi MM ML jP TTF E 25TH ST ----------------- t — � 99 0 t I Y I r iTb i I I I - s I ! i e I i ~ Existing Limits I Expanded Limits L______; 4 lid �- u E i 1 I ,y 0 0 100 Feet � . oo II � t I t I rr � y N`I w- - __----___— �< E 24TH ST Me I:. IL