Intent to Dispose of Property_2008 Foye Street_Rath_Initiate Copyright 2014
City of Dubuque Items to be set for Public Hearing # 4.
ITEM TITLE: Intentto Dispose of Property- 2008 Foye Street
SUMMARY: City Manager recommending the City Council set a public
hearing for February 15, 2016, on the City's intent to
dispose of property located at 2008 Foye Street to David
and Ellen Rath.
RESOLUTION 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
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for 2/15/16
ATTACHMENTS:
Description Type
2008 Foye Street Contract for Sale of Properly-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Resolution Intent to Dispose Resolutions
Notice of Hearing Supporting Documentation
Offer to Buy Draft Supporting Documentation
Contract Agreement Draft Supporting Documentation
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: Contract for Sale of Property Located at 2008 Foye Street
DATE: January 26, 2016
Housing and Community Development Department Director Alvin Nash requests the
City Council set a public hearing for February 15, 2016, on the City's intent to dispose of
property located at 2008 Foye Street to David and Ellen Rath. David and Ellen Rath
have agreed to deconstruct the home at 2008 Foye Street and rehabilitate the 1-stall
detached garage.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing and Community Development Department Director
THE CITY OF Dubuque
AII-Ame1 rica 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: Contract for Sale of Property Located at 2008 Foye Street
DATE: January 25, 2016
Introduction
The purpose of this memo is to propose the Contract for Sale of the property located at
2008 Foye Street to David and Ellen Rath who currently own and occupy the property
located at 595 West Locust, which is the property directly to the east of 2008 Foye
Street.
2008 Foye Street is a vacant/abandon property in which the City of Dubuque took
possession of in October of 2015 through Court Order by filing for Petition for Title. This
property has been left abandon for at least four years.
Background
The City of Dubuque took possession of 2008 Foye Street in October of 2015 through
Court Order by filing for Petition for Title. Previous to the City taking possession, the
property was abandon for approximately four years and under constant Code
Enforcement for multiple issues. Upon taking possession in late October the City of
Dubuque Rehabilitation Inspector performed a detailed inspection and property
assessment and put together projected construction costs to rehabilitate the property.
The cost of rehabilitation exceeded the projected sale cost of the property considerably
due to the current condition of the structure. The projected loss factor in rehabilitation of
the property minus the projected sale cost would have been $15,000 to $20,000 which
prompted us to move towards deconstruction of the property.
The City of Dubuque was contacted by David and Ellen Rath who live directly to the
east of 2008 Foye Street at 595 West Locust Street. They have expressed interest in
obtaining ownership of 2008 Foye Street to deconstruct the home for green
space/additional yard space and maintain/rehabilitate the garage. In exchange for the
Raths' agreement to deconstructing the home and rehabilitating the garage, they
request clear title and ownership of the lot at 2008 Foye Street.
Discussion
Step 1: The City of Dubuque will place a Restrictive 21-year single family owner-
occupied covenant on 2008 Foye Street. Additionally, as part of this agreement the
Raths' have agreed to place a 21-year single family owner-occupied covenant on 595
West Locust Street.
Step 2: The City of Dubuque will cover removal of asbestos containing materials from
the home and removal/disconnection of sewer/water connections at the mains. The
asbestos removal will cost the City $2,000.00, and the sewer/water disconnection will
cost the City $3,750.
Step 3: David and Ellen Rath of 595 West Locust will be responsible for the remaining
deconstruction of the home located at 2008 Foye Street in accordance with our local
building codes and will obtain the necessary permit for the deconstruction work. David
and Ellen Rath will accept all financial responsibility to rehabilitate and save the existing
1-Stall detached garage which is located at 2008 Foye Street. They have further agreed
to obtain all necessary permits to perform the construction work on the garage as well
as adhere to the Rehabilitation Standards set forth in our agreement. See attached
Contract Agreement.
Step 4: Upon completion and final inspection of the agreed upon work above, David and
Ellen Rath will obtain clear title and ownership of the property and 1-stall detached
garage located at 2008 Foye Street.
Conclusion
The Contract for Sale and Agreement will benefit both the City of Dubuque, David and
Ellen Rath and the neighborhood. The City of Dubuque will suffer less of a financial loss
in this agreement, due to the Rath's accepting financial responsibility to deconstruct the
house and rehabilitate the garage located at 2008 Foye Street. The Rath's will benefit
from their investment by increasing the size of their yard or available green space,
adding a 1-stall detached garage for functionality, and increasing the value of their
property. In addition, this eliminates the underlying issue of a vacant/abandon structure
in the neighborhood.
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 and recommend the City Council approve the
Contract for Sale of the property to David and Ellen Rath of 595 West Locust in
accordance with the above discussion and attached Agreement.
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RESOLUTION NO. 34-16
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, Iowa (City) is the owner of 2008 Foye Street (the
Property) legally described as:
East 24 feet of Lot 22 in Cox's Addition to Dubuque, in the City of Dubuque,
Iowa, according to the recorded plat thereof.
WHEREAS, City acquired the Property as vacant/abandoned property in which the
City of Dubuque took possession of in October 2015 through Court Order by filing for
petition for; and
WHEREAS, City and David and Ellen Rath entered into a Contract Agreement
pursuant to which City will convey the Property to David and Ellen Rath to deconstruct the
single family Property and rehabilitate the existing garage in accordance with the
Rehabilitation Standards and all applicable City Codes as approved by the City Council;
and
WHEREAS, conveying the Property to David and Ellen Rath is consistent with the
City's intent for this specific property; and
WHEREAS, City desires to hold the required public hearing and conveyance of the
Property to David and Ellen Rath.
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:
East 24 feet of Lot 22 in Cox's Addition to Dubuque, in the City of Dubuque,
Iowa, according to the recorded plat thereof.
Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the
Property to David and Ellen Rath for the sum of one dollar ($1.00).
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 Property to be held on the 15th day
of February, 2016, at 6:30 o'clock p.m. at the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa.
Passed, approved and adopted this lst day of Febr ary, 2016.
Roy D. By. I, Mayor
ATTEST:
Kevin S% Firnstahl, Cit Jerk
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will
hold a public hearing on the 15th day of February, 2016, at 6:30 p.m. in the Historic
Federal Building, 350 West Sixth Street, second floor, Dubuque, Iowa, at which meeting
the City Council proposes to dispose of an interest in the following described real
property by sale to David and Ellen Rath:
East 24 feet of Lot 22 in Cox's Addition to Dubuque, in the City of Dubuque,
Iowa, according to the recorded plat thereof. (2008 Foye Street)
At the meeting, the City Council will receive oral and written comments from any
resident or property owner of said City to the above action. Written comments
regarding the above public hearing may be submitted to the City Clerk's Office, City
Hall, 50 W. 13th Street, on or before said time of public hearing.
Copies of supporting documents for the public hearings are on file in the City Clerk's
Office, and may be viewed during normal working hours.
Any visual or hearing impaired persons needing special assistance or persons with
special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or
TTY (563) 556-9948 at least 48 hours prior to the meeting.
Dated this (Day)th day of (Month), (Year). (date of publication)
Kevin S. Firnstahl, CMC
City Clerk
1 t XX/XX (clerk use)
The Resolution on Intent to Dispose is inserted here for the newspaper.
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: City of Dubuque, Iowa, a municipal corporation (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
(Real Estate) situated in Dubuque, Iowa, locally known as 2008 Foye Street, Dubuque,
IA 52001 and legally described as:
East 24 feet of Lot 22 in Cox's Addition to Dubuque, in the City of Dubuque,
Iowa, according to the recorded plat thereof.
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 one dollar ($1 .00).
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 6. 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 existing insurance and Buyer may purchase additional insurance. In
the event of substantial damage or destruction prior to closing, this agreement shall be
null and void; provided, however, Buyer shall have the option to complete the closing
and receive insurance proceeds 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,
provided, however, if there is loss or destruction of all or any part of the Real Estate
from causes covered by the insurance maintained by Seller, Buyer agrees to accept
such damaged or destroyed Real Estate together with such insurance proceeds in lieu
of the Real Estate in its present condition and Seller shall not be required to repair or
replace same.
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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 June 17, 2016, or such earlier date as the parties may
agree in writing, with any adjustments of rent, insurance, and interest to be made as of
the date of transfer of possession.
7.2 Closing shall occur after the approval of title by Buyer and vacation of the Real
Estate by Seller, but prior to possession by Buyer. Seller agrees to permit Buyer to
inspect the Real Estate within seventy two (72) hours prior to closing to assure that the
premises are in the condition required by this agreement. If possession is given on a
day other than closing, the parties shall make a separate agreement with adjustments
as of the date of possession.
7.3 This transaction shall be considered closed upon the delivery of the title transfer
documents to Buyer and receipt of all funds then due at closing from Buyer under the
Agreement.
SECTION 8. USE OF PURCHASE PRICE. At time of settlement, funds of the
Purchase Price may be used to pay taxes and other liens and to acquire outstanding
interests, if any, of others.
SECTION 9. FIXTURES. Included with the Real Estate shall be all fixtures that
integrally belong to, are specifically adapted to or are a part of the real estate, whether
attached or detached. Also included shall be the following: N/A. The following items
shall not be included: N/A.
SECTION 10. ABSTRACT AND TITLE. Seller, at its expense, shall promptly obtain an
abstract of title to the Real Estate and deliver it to Buyer's attorney for examination. It
shall show marketable title in Seller in conformity with this Agreement, Iowa law, and
title standards of the Iowa State Bar Association. Seller shall make every reasonable
effort to promptly perfect title. If closing is delayed due to Seller's inability to provide
marketable title, this agreement shall continue in force and effect until either party
rescinds the Agreement after giving ten (10) days written notice to the other party. The
abstract shall become the property of Buyer when the Purchase Price is paid in full.
Seller shall pay the costs of any additional abstracting and title work due to any act or
omission of Seller, including transfers by or the death of Seller or Seller's assignees.
Unless stricken, the abstract shall be obtained from an abstracter qualified by the
Guaranty Division of the Iowa Housing Finance Authority.
SECTION 11. DEED. Upon payment of the Purchase Price, Seller shall convey the
Real Estate to Buyer by Special Warranty Deed, free and clear of all liens, restrictions,
and encumbrances, except as provided in this agreement. General warranties of the
title shall extend to the time of delivery of the deed excepting liens and encumbrances
suffered or permitted by Buyer.
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SECTION 12. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract
shall apply to and bind the successors in interest of the parties. This agreement shall
survive the closing.
SECTION 13. RIGHTS OF INSPECTION, ENVIRONMENTAL TESTING AND
REVIEW. Real Estate deeded herein is taken in "as is" condition with no guarantees or
warranties express or implied.
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 perform this contract, Buyer has the right to have all
payments made returned to it.
18.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at
3
law or in equity available to them and shall be entitled to obtain judgment for costs and
attorney fees as permitted by law.
SECTION 19. WAIVER. Failure to promptly assert rights herein shall not, however, be
a waiver of such rights or a waiver of any existing or subsequent default.
SECTION 20. NOTICE. Any notice under this agreement shall be in writing and be
deemed served when it is delivered by personal delivery or mailed by certified mail,
addressed to the parties at the addresses given below.
David & Ellen Rath
595 West Locust Street
Dubuque, IA 52001
City of Dubuque
Attn: Alvin Nash
50 W. 13th Street
Dubuque, IA 52001
SECTION 21. TIME IS OF THE ESSENCE. In the performance of each part of this
agreement, time shall be of the essence.
SECTION 22. TIME FOR ACCEPTANCE. When accepted, this agreement shall
become a binding contract. If this Offer is not accepted and delivered to Buyer on or
before 5:00 p.m. on February 29, 2016, this agreement shall be null and void and all
payments shall be returned immediately to the Buyer.
SECTION 23. ENTIRE AGREEMENT. This agreement contains the entire agreement
of the parties and shall not be amended except by a written instrument duly signed by
Seller and Buyer.
SECTION 24. PARAGRAPH HEADINGS AND CONSTRUCTION. Paragraph
headings are for convenience of reference and shall not limit or affect the meaning of
this Agreement. Words and phrases herein shall be construed as in the singular or
plural number, and as masculine, feminine or neuter gender according to the context.
SECTION 25. OTHER PROVISIONS.
25.1 This agreement 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.
25.2 The Real Estate will have a restrictive covenant filed indicating the property must
remain owner occupied for twenty-one (21) years.
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25.3 The terms of the Contract Agreement attached to this Offer to Buy are hereby
incorporated.
SELLER BUYER
CITY OF DUBUQUE, IOWA DAVID & ELLEN RATH
By: By:
Roy D. Buol, Mayor David A. Rath
By:
Ellen M. Rath
Dated: Dated:
5
Contract Agreement
Property: 2008 Foye Street
Asbestos Removal Work:
The City of Dubuque will take on financial responsibility to have the asbestos containing
materials removed by a Licensed Contractor according to State Regulations. The total cost of
the asbestos removal no more than $2,000.
Sewer/Water Disconnection Work:
The City of Dubuque will take on financial responsibility to have both the private water and
sewer lines disconnected at the mains. The total cost of the water/sewer disconnections will be
no more than $3,750.
Work Description of Deconstructing the Home:
The Raths' (Owner) to agree to all other financial responsibility for the work to be done at 2008
Foye Street. The Owner will be responsible to obtain a deconstruction permit to completely
remove the entire existing single family home currently constructed on this lot. Owner to remove
all portions of the structure up to the 1-stall detached garage down to the existing foundations.
Owner to haul all materials off site and is encouraged to recycle and reuse any suitable
materials, and haul all other materials and debris off site to the landfill. Owner to remove all
foundation material around the perimeter of the structure to a minimum of 1 foot below grade
prior to backfilling. Owner to haul in clean uncontaminated fill for backfill with a minimum of 6
inches of clean black dirt for topsoil. Owner to properly compact the fill and restore the lot to the
natural condition upon final grading. Owner must install proper plant habitat in the soil that
meets all applicable City Codes & Ordinances upon completion to avoid erosion and run-off in
the newly compacted soil. See attached photo of house and garage.
Work Description of Rehabilitating the Garage:
Owner to agree to the following work to be done on the existing 1-stall detached garage. Owner
to obtain a building permit for the rehabilitation work being done on the garage. The garage
repairs and rehabilitation work to fall in accordance with the attached Rehabilitation Standards
Manual, and be done in accordance with all applicable City Codes.
Project Completion Date:
Owner agrees to have all work completed and final inspections made by June 17, 2016.
Buyers: Sellers:
David Rath Roy D. Buol, Mayor
City of Dubuque
Ellen Rath
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