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Sale of 1069 Vernon Street_Norton_Initiate Copyright 2014 City of Dubuque Items to be set for Public Hearing # 2. ITEM TITLE: Sale of 1069 Vernon Street SUMMARY: City Manager recommending that a public hearing be set for January 17, 2017, to approve the sale of 1069 Vernon Street to Craig Norton. 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 1/17/17 ATTACHMENTS: Description Type 1069 Vernon Street Contract for Sale-MVM Memo City Manager Memo Staff Memo Staff Memo Resolution 1 Resolutions Exhibit- Restrictive Covenant Supporting Documentation THE CITY OF Dubuque DUB E 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 at 1069 Vernon Street DATE: December 26, 2016 Through Court action, the City of Dubuque took ownership of 1069 Vernon Street, which was a dilapidated vacant/abandoned property that has been a nuisance for the neighborhood for many years. There was extensive structural damage to the property and it was determined that the structure would not be a good candidate for rehabilitation. The property was offered for sale to the adjoining neighbors and Craig Norton was the only neighbor interested in the property. Housing and Community Development Department Director Alvin Nash recommends the City Council set a public hearing for January 17, 2017, to approve the sale of 1069 Vernon Street to Craig Norton for $5,000. Mr. Norton will be responsible for the cost of demolition of the structure on the property and will allow a 21-year single family owner- occupied restrictive covenant to be placed on the property and combine the parcel with his own parcel at 1053 Vernon. I concur with the recommendation and respectfully request Mayor and City Council approval. ZyL^1 Mic ael C. Van Milligen MCVM Jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing and Community Development Department Director THE CITY OF Dubuque AII11-America CiI.ty UB E1 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 at 1069 Vernon Street DATE: December 19, 2016 Introduction The purpose of this memo is to propose the Contract for Sale of the property located at 1069 Vernon Street to Craig D. Norton, who currently owns and occupies the property located at 1053 Vernon, which adjoins said property on the east side. Through court action utilizing the Petition of Title, the City of Dubuque was able to take ownership of 1069 Vernon Street; which is a dilapidated vacant/abandon property that has been a nuisance for the neighborhood for many years. Background The City of Dubuque took possession of 1069 Vernon Street in June 2016 through Court Order by filing for Petition for Title. Upon taking possession, the Housing staff performed an interior inspection. The inspection revealed a roof leak that has done extensive structural damage, an improper addition to the rear of the structure and the deteriorated condition of the foundation. It was determined by staff that the structure would not be a good candidate for rehabilitation. The best solution was to offer the property to the adjoining neighbors. Mr. Norton is the only neighbor interested in the property and has made an offer to purchase the property for $5,000.00 in lieu of ownership of the property. Discussion As part of the transaction Mr. Norton will incur the cost of demolition of the structure, allow a 21-year single family owner-occupied restrictive covenant to be placed on the property and combine the parcel with his own parcel. The City of Dubuque will place the Restrictive 21-year Covenant to the parcel before deeding the property to Mr. Norton. The real estate will be restricted for residential use of no more than one single-family owner-occupied property. Rental of the real estate is not allowed. Currently Mr. Norton is uncertain of the future use for the lot. He may leave it vacant for green space or build a garage. 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 Craig D. Norton in accordance with the above discussion and attached Agreement. 2 RESOLUTION NO. 14-17 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 1069 Vernon Street and Parcel Number 1023477014 (the Properties) legally described as: LOT 38 in Leven's Addition WHEREAS, City acquired the Property for the purpose of eliminating slum and blight. The City will require demolition of the dilapidated structure by the buyer for conveyance of both the derelict property and a city owned parcel that adjoins the buyer's private residence. WHEREAS, City and Buyer entered into an Agreement pursuant to which City will' convey the Properties to Craig D. Norton for demolition of structure at 1069 Vernon Street; and WHEREAS, conveying the Property to Craig D. Norton is consistent with the City's intent of elimination of slum and blight; and WHEREAS, City desires to hold the required public hearing and conveyance of the Property to Craig D. Norton. 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 38 in Leven's Addition Subdivision in the City of Dubuque, Iowa, according to the United States Commissioners Map thereof. Section 2. That the City of Dubuque, Iowa, proposes to dispose of its interest in the Properties to Buyer for the sum of five thousand dollars ($5000.00). 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 17th day of January, 2017 at 6:00 o'clock p.m. at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. Passed, approved and adopted this 3rd day of January, 2017. Ad Attest: Trish L. Gleason, Assistant City Clerk Roy D. Buol, Mayor 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 17th day of January, 2017 at 6:00 p.m. in the Historic Federal Building, 350 West 6th 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 Craig D. Norton: Lot 38 in Leven's Addition Subdivision in the City of Dubuque, Iowa, according to the United States Commissioners Map thereof. (Locally known as 1069 Vernon 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) 690-6678 at least 48 hours prior to the meeting. Dated this 6th day of January, 2017. Kevin S. Firnstahl, CMC, City Clerk Prepared by Crenna Brumwell, 300 Main Street, Suite 330 Dubuque, IA 52001 563-589-4381 RESTRICTIVE COVENANTS FOR RESIDENTIAL REAL ESTATE KNOW ALL PERSONS BY THERE PRESENT that the City of Dubuque, Iowa (City), the owner of the following premises situated in the City of Dubuque, Iowa: Lot 38 in Leven's Addition in the City of Dubuque, according to the recorded Plat of said Addition (Real Estate) does hereby establish and place the following restrictive covenants on the Real Estate: 1 . The Real Estate shall be known and described as residential Real Estate, and shall not be improved, used or occupied for other than one (1) private single-family residential use. The Real Estate and any part thereof must be owner occupied. Rental of the Real Estate is not allowed. No portion of the Real Estate can be rented as an apartment. 2. The City has the right to enforce, by any proceedings in law or in equity, all restrictions, conditions and covenants now or hereafter imposed by the provisions of these restrictive covenants. 3. These covenants shall be filed for record in the office of the Dubuque County Recorder and all covenants, agreements, promises and representations herein stated shall be deemed to be covenants running with the Real Estate and shall endure and be binding on the parties hereto, their mortgagees, lienholders, successors and assigns, for a period of twenty-one (21) years from the date of the recording of these covenants. The property owner has the right to renew these covenants for successive twenty-one (21) year periods. 4. Invalidation of any of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect. 5. The waiver of any violation or failure to enforce any such restrictions, easements, and covenants shall not in any event operate as a waiver, impairment or abrogation of same, or the right to enforce the same in the event of any future or other breach of the same of any other restriction, easement, rule or covenant, by the same or any other person. 6. These restrictions, easements, rules and covenants shall be construed under and in accordance with the laws of the State of Iowa. The foregoing provisions encumber the Real Estate described as: Lot 38 in Levin's Addition in the City of Dubuque, Iowa, according to the recorded Plat of said Addition Executed by the respective signatories effective the date first above written. CITY OF DUBUQUE, IOWA OWNER By: By: Roy D. Buol, Mayor ATTEST: By: Trish Gleason, Assistant City Clerk On this _ day of 2017, before me, a Notary Public in and for said state, personally appeared Roy D. Buol and Trish Gleason known to me to be the person(s) named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. Notary Public in the State of Iowa My Commission expires On this _ day of , 2017, before me, a Notary Public in and for said state personally appeared known to me to be the person(s) named in and who executed the foregoing instrument, and acknowledge that they executed the same as their voluntary act and deed. Notary Public in the State of Iowa My Commission expires 2