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Authorization to Sign Purchase Contracts/Offers to Buy Copyright 2014 City of Dubuque Consent Items # 6. ITEM TITLE: Authorization to Sign Purchase Contracts/Offers to Buy SUMMARY: City Manager recommending authorization for the Housing and Community Development Department Director to sign Purchase Contracts/Offers to Buy on behalf of the City of Dubuque. RESOLUTION Authorizing the Housing and Community Development Director to execute purchase contracts/offers to buy on behalf of the City of Dubuque subject to final approval by the City Council. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Authorization to Sign Purchase Contracts/Offers to City Manager Memo Buy-MVM Memo Memo Staff Memo 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: Authorization to Sign Purchase Contracts/Offers to Buy DATE: April 12, 2016 The Housing & Community Development Department staff negotiates offers to purchase properties for purposes of revitalizing neighborhoods, acquiring vacant/abandoned properties and providing affordable homeownership opportunities throughout the City of Dubuque. Currently, only the Mayor can sign the offer, after the City Council approves the purchase. Realtors have stated that until signed by someone authorized to extend the offer to purchase, there is no offer. Because properties are actively listed, until there is an executed purchase agreement, the Realtor is obligated by state contract law to present any other offers that come in for potential acceptance. Once there is an executed offer and acceptance with a potential buyer (in this case, the City) other offers can be received and accepted as back-up, but cannot bump the City's offer while it is subject to those contingencies. Housing and Community Development Department Director Alvin Nash recommends City Council authorization for the Housing and Community Development Department Director to sign Purchase Contracts/Offers to Buy on behalf of the City of Dubuque. The contract to purchase is not binding unless the contingencies set forth in the offer are met, including City Council approval. 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: Authorization to sign Purchase Contracts/Offers to Buy DATE: April 11, 2016 Introduction The purpose of this memorandum is to request City Council approval to designate Alvin Nash, Housing and Community Development Department Director to be authorized to sign Purchase Contracts/Offers to Buy on behalf of the City of Dubuque. Background The Housing & Community Development Department staff negotiates offers to purchase properties for purposes of revitalizing neighborhoods, acquiring vacant/abandoned properties and providing affordable homeownership opportunities throughout the City of Dubuque. However, as the protocol sits now, we do not have the authority to sign an offer, only the Mayor can after City Council approves the purchase. We have been informed by realtors' that until signed by someone authorized to extend the offer to purchase, there is no offer. Because properties are actively listed, until there is an executed purchase agreement, the Realtor is obligated by state contract law to present any other offers that come in for potential acceptance. Once there is an executed offer and acceptance with a potential buyer (in this case, the City) other offers can be received and accepted as back-up, but cannot bump your offer while it is subject to those contingencies. It is for the City's protection as the potential buyer as much, if not more so, than for the protection of the seller. Discussion As with any offer, it is understood that the contract to purchase is not binding unless the contingencies set forth in the offer are met including City Council approval. Action Step The action requested of the City Council is approval to designate Alvin Nash, Housing and Community Development Department Director to be authorized to sign Purchase Contracts/Offers to Buy on behalf of the City of Dubuque. KLN Preparer: Barry A. Lindahl, Esq., Housing & Community Develop Dept., 350 W, 6th, Suite 312, Dubuque, IA 52001 (563) 583- 4113 RESOLUTION NO. 122-16 AUTHORIZING THE HOUSING AND COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE PURCHASE CONTRACTS/OFFERS TO BUY ON BEHALF OF THE CITY OF DUBUQUE SUBJECT TO FINAL APPROVAL BY THE CITY COUNCIL NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Housing and Community Development Director shall have the authority to sign the following documents on behalf of the City: (a) Purchase Contracts; (d) Offers to Buy All contracts/offers will be contingent on final approval of the City Council. If City Council does not approve the Purchase Contract or Offer to Buy the agreement is null and void. Section 2. The Department Director may delegate the authority granted herein provided such, delegation is in writing. Passed, approved and adopted this 18th day of April, 2016. Ric W. Janes, 'Mayor Pro -Tem Attest: Kevin S. Firnstahl, City Clerk