Intent to Dispose of Property - 2300 Jackson Street_Paisley Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Intent to Dispose of Property- 2300 Jackson Street
SUMMARY: City Manager recommending the City Council set a public
hearing for January 19, 2016, for the purpose of disposing
of City-owned real estate at 2300 Jackson Street to Tami
M. Paisley.
RESOLUTION Intent to dispose of an interest in City of
Dubuque real estate, setting a time and place for a hearing
and providing for the publication of notice thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for 1/19/16
ATTACHMENTS:
Description Type
Sale of 2300 Jackson Street-MVM Memo City Manager Memo
Memo Staff Memo
Offer and Acceptance Supporting Documentation
Resolution Resolutions
THE CITY OF Dubuque
UBE 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: Sale of City-Owned Property at 2300 Jackson Street
DATE: December 28, 2015
Housing & Community Development Department Director Alvin Nash recommends the
City Council set a public hearing for January 19, 2016, for the purpose of disposing of
City-owned real estate at 2300 Jackson Street to Tami M. Paisley for the appraised
value of $1101000.
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
Alvin Nash, Housing & Community Development Department Director
THE CITY OF Dubuque
AII4meric11 a City
DUBgkE r
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing and Community Development Department
SUBJECT: Sale of City-owned property at 2300 Jackson Street
DATE: December 21, 2015
Introduction
The purpose of this memorandum is to request the City Council action to set a Public
Hearing for the purpose of disposing of City-owned real property located at 2300
Jackson Street.
Background
As part of the Neighborhood Stabilization Program (NSP), the City is to acquire and
rehab vacant or abandoned properties. This is also part of continued efforts of the
Washington Neighborhood Strategic Plan to increase homeownership opportunities in
the Washington neighborhood. This is the tenth (10) property purchased with NSP
funds and rehabilitated.
This property had been a nuisance to the neighborhood for quite some time and had
multiple outstanding code enforcement issues. The City purchased the property on
April 2, 2015, for the assessed value of $10,000. The same day of closing, the property
had a water break adding additional cost to the project. Due to the extensive
rehabilitation, the property was not previously marketed.
Neighborhood Stabilization Program funds in the amount of $118,535 were utilized to
renovate the property and prepare it for re-sale. Other funds utilized included the
Downtown TIF in the amount of $32,207, which will be paid back at the time of sale.
The amount of funds to purchase and rehabilitate this property total $150,742. This
amount included lead paint abatement and an unforeseen water break that occurred
right after the purchase of the property.
The 21-year Restrictive Covenant for residential real estate has previously been
recorded.
Discussion
An offer has been made by Tami M. Paisley, to purchase the property at 2300 Jackson
for $110,000, in accordance with the value established by an independent appraiser.
As a requirement of the NSP Program, the purchase price can only be appraised value
or actual rehab costs, whichever is lesser of the two. Another requirement of the NSP
Program is the household purchasing the property has to be below 50% median
income. It is for this reason that the buyer is unable to obtain a larger 1 sc mortgage and
also why they are eligible to receive a larger incentive package using NSP funds. A
$45,000, 15-year forgivable loan will be made to the buyer to assist with down payment,
closing costs, other related costs, or simply by bringing down the 1 sc mortgage.
Financing to the Tami Paisley will be provided through a first mortgage from Dupaco
Community Credit Union.
Action Step
The action requested of the City Council is to approve the attached resolution, declaring
the City's intent to dispose of the property and set the date for the public hearing to
receive comments on the proposed sale.
KLN
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: City of Dubuque (Seller)
SECTION 1. REAL ESTATE DESCRIPTION. The undersigned BUYER hereby offers to
buy and the undersigned SELLER by its acceptance agrees to sell the real estate situated in
Dubuque, Iowa, locally known as 2300 Jackson Street, Dubuque, IA 52001 and legally described
as:
Lot 2 of Lot 63 in L.H. Langworthy's Addition
(Real Estate); legal description to be confirmed per continued abstract per Section 10, together
with any easements and appurtenant servient estates,but subject to the following:
A. Any easements of record for public utilities or roads;
B. Any zoning restrictions and other ordinances; and
C. Any covenants of record.
SECTION 2. PURCHASE PRICE. The purchase price shall be $110,000.00, payable in
cash at the closing.
SECTION 3. REAL ESTATE TAXES. Seller shall pay any unpaid real estate taxes payable
for fiscal year 2014-2015 and prior years. Seller shall also pay real estate taxes for fiscal year
2015-2016 prorated through the date of closing. Buyer shall pay all subsequent real estate taxes
due and payable after the date of closing.
SECTION 4. SPECIAL ASSESSMENTS. Seller shall pay all special assessments which are
a lien on the Real Estate as of the date of acceptance of this Offer. All other special assessments
shall be paid by Buyer.
SECTION 5. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or
damage to the Real Estate prior to closing or possession, whichever first occurs. Seller agrees to
maintain any existing insurance, if any, and Buyer may purchase additional insurance. In the
event of substantial damage or destruction prior to closing, this Offer shall be null and void;
provided, however, Buyer shall have the option to complete the closing and receive insurance
proceeds, if any, regardless of the extent of damages. The property shall be deemed substantially
damaged or destroyed if it cannot be restored to its present condition on or before the closing
date.
SECTION 6. CARE AND MAINTENANCE. The Real Estate shall be preserved in its
present condition and delivered intact at the time of possession is delivered to Buyer.
SECTION 7. POSSESSION AND CLOSING.
7.1 If Buyer timely performs all obligations, possession of the Real Estate shall be delivered
to Buyer on or before February 1, 2015, or such earlier date as the parties may agree in writing,
1
13.2 The Seller has no knowledge to the existence of any wells, solid waste disposal sites,
hazardous wastes or substances, underground storage tanks, or burial sites located on the Real
Estate and shall provide Buyer with a properly executed Groundwater Hazard Statement at the
time of closing. The Seller has no knowledge of and has done nothing to contaminate or allow
the contamination of the Real Estate. The Seller has no knowledge as to any local, state, or
federal judicial or administrative action, investigation, or order regarding its environmental
condition or environmental compliance.
13.3 The Real Estate is not served by a private sewage disposal system, and there are no
known private sewage disposal systems on the property.
SECTION 14. ENCUMBRANCES. Seller warrants that the Real Estate will as of the date of
closing be free and clear of all liens, security interests, and encumbrances.
SECTION 15. TENANTS. The Real Estate is free and clear of any occupants, and no party
has a lease to or other occupancy or contract right in the Real Estate which shall in anyway be
binding upon the Real Estate. Seller shall hold harmless and indemnify the Buyer for and
against any claims, which may arise or be based upon any alleged leasehold interest, tenancy, or
other right of occupancy or use for any portion for the Real Estate. This covenant shall survive
the Closing.
SECTION 16. NO REAL, ESTATE AGENT OR BROKER. Neither party has used the
service of a real estate agent or broker in connection with this transaction.
SECTION 17. CERTIFICATION. Buyer and Seller each certify that they are not acting,
directly or indirectly, for or on behalf of any person, group, entity, or nation named by any
Executive Order or the United States Treasury Department as a terrorist, "Specially Designated
National and Blocked Person", or any other banned or blocked person, entity, nation, or
transaction pursuant to any law, order, rule, or regulation that is enforced or administered by the
Office of Foreign Assets Control; and are not engaged in this transaction, directly or indirectly
on behalf of, any such person, group, entity, or nation. Each party hereby agrees to defend,
indemnify, and hold harmless the other party from and against any and all claims, damages,
losses, risks, liabilities, and expenses (including attorney's fees and costs) arising from or related
to breach of the foregoing certification.
SECTION 18. REMEDIES OF THE PARTIES.
18.1 If Buyer fails to timely perform this contract, Seller may forfeit it as provided in the Iowa
Code, and all payments made shall be forfeited or, at Seller's option, upon thirty(30) days' written
notice of intention to accelerate the payment of the entire balance because of such failure (during
which thirty (30) days such failure is not corrected) Seller may declare the entire balance
immediately due and payable. Thereafter this contract may be foreclosed in equity and the Court
may appoint a receiver.
18.2 If Seller fails to timely perfonn this contract, Buyer has the right to have all payments made
3
SECTION 25. OTHER PROVISIONS.
25.1 Seller will provide Buyer with a signed Acknowledgment of Voluntary Negotiation and
Purchase of Property at the time of closing.
25.2 This Offer is subject to the final approval of the City Council of the City of Dubuque,
Iowa in its sole discretion. If the City Council of the City of Dubuque, Iowa does not approve
this Offer, it shall become automatically void and neither party shall be bound by the terms and
conditions set forth herein.
25.3 Buyer acknowledges that the real estate is being purchased used, "AS IS", "WHERE IS"
"WITH ALL FAULTS" and"WITHOUT WARRANTY".
Accepted : �� , 2015 Dated: � 2015
SELLER BUYER
CITY OF DUBUQUE TAMI M. PAISLEY
EIN: 42-6004596 SS #
hy.Alvin Nash, Housing & Community By: Tan-ii M. Paisley
Development Director
5
RESOLUTION NO. 7-16
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE,
SETTING A TIME AND PLACE FOR HEARING AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque has obtained certain real property in connection with
the Washington Neighborhood Revitalize Project; and for purpose of its acquisition,
rehabilitation and re -sale for owner -occupied housing; and
WHEREAS, the City received an offer to purchase this property from Tami M Paisley;
WHEREAS, such purpose supports the Neighborhood Stabilization Program and
Washington Neighborhood Revitalization strategy as approved by the City Council; and
WHEREAS, by accepting the selected offer the City's objectives of providing
homeownership to an income qualified buyers and rehabilitation of a vacated home can be
realized;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque, Iowa, intends to dispose of its interest in the
following legally -described property:
Lot 2 of Lot 63 in L.H. Langworthy's Addition in the City of Dubuque, Iowa,
according to the recorded plat thereof — 2300 Jackson Street.
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the
above described real estate to Tami M. Paisley for the sum of $110,000;
Section 3. That the City Clerk is hereby authorized and directed to cause this Resolution
and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing
on the City's intent to dispose of the foregoing -described Property, to be held on the 19th
day of January, 2016, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa.
Passed, approved and adopted this 4th day of January, 2016.
Attest:
Kevin{ irnstahl,`C City Clerk
1) Li
(Roy D Buol, Mayor