HomeMy WebLinkAbout2016-06-06 Public hearingRESOLUTION OF INTENT TO
CONSIDER THE PROPOSED
CONVEYANCE OF A PORTION OF
VACATED WATERFRONT DRIVE
RIGHT-OF-WAY WITHIN SOUTHGATE
ADDITION, PART 1, AND SETTING A
PUBLIC HEARING ON SAID
PROPOSAL FOR JUNE 6, 2016
TO ALL TAXPAYERS OF THE CITY OF IOWA
CITY, IOWA, AND TO OTHER INTERESTED
PERSONS:
Public notice is hereby given that the City Council
of the City of Iowa City, Iowa, will conduct a public
hearing on its intention to convey that portion of
Waterfront Drive proposed to be vacated within
the Southgate Addition, Part 1, near the southeast
corner of the intersection of South Gilbert Street
and U. S. Highway 6, Iowa City, Iowa, to the
adjacent property owners at 7:00 p.m. on the 6th
day of June, 2016, said meeting to be held in the
Emma J. Harvat Hall in the City Hall, 410 E.
Washington Street in said city, or if said meeting
is cancelled, at the next meeting of the City
Council thereafter as posted by the City Clerk.
Said resolution is now on file in the office of the
City Clerk in the City Hall in Iowa City, Iowa, and
may be inspected by any interested persons.
Any interested persons may appear at said
meeting of the City Council for the purpose of
making objections to and comments concerning
said conveyance.
This notice is given by order of the City Council
of the City of Iowa City, Iowa and as provided by
law.
MARIAN K. KARR, CITY CLERK
A
•
Prepared by: Sara Greenwood Hektoen, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240;
319-356-5230
RESOLUTION APPROVING THE CONVEYANCE OF VACATED WATERFRONT
DRIVE RIGHT-OF-WAY WITHIN SOUTHGATE ADDITION, PART 1
WHEREAS, EVC Iowa City, L.L.C. (a/k/a Equity Ventures Commercial Development)
asked the City Council to vacate certain Waterfront Drive right-of-way, within the
Southgate Addition, Part 1, Iowa City, Iowa, legally described on the attached Right -
of -Way Vacation Plat; and
WHEREAS, this request has been made to allow the d veloper to combine this
vacated right -of with the adjacent lots it intends t redevelop as Southgate
Addition, Part 2, a co ercial development; and
WHEREAS, an applicatio has been made for approval f said Part 2 final plat, which
contemplates the dedicati of 1,906 square feet of 'ght-of-way to the City along
Gilbert Street; and
WHEREAS, the City desires t have this G
facilitate a future public improvem t project to
intersection with Highway 6, adjace to this su
WHEREAS, City Council set and held
published as required by law; and
reet right-of-way dedicated to
and upgrade the Gilbert Street
: and
on this request after notice was
WHEREAS, in accordance with state law, a City is required to receive fair market
value for this property; and
WHEREAS, Staff recommends appro I of t ' conveyance in consideration of
payment in the amount of $79,312.80, ich Staff nds to be fair market value for the
vacated Waterfront Drive right-of-wa based upon n examination of the assessed
value of adjacent property, the cost relocating the s wer lying therein, and the value
of the Gilbert Street right-of-way the applicant has agre to dedicate to the City; and
WHEREAS, this value is base upon a calculation tha deducts the value of the
Gilbert Street right-of-way to be/dedicated to the City with IN Southgate Addition, Part
2 final plat, which staff find reasonable given the uniq circumstances of this
dedication.
NOW, THEREFORE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, IOWA, HAT:
1. The conveyance of the right-of-way vacated pursuant to Ordinance No. 16 -
and described on the attached plat, to the adjacent property owners as tenants-in-
common for payment of fair market value, as described above, is hereby
approved. FILED ®E
MAY 1 1 2016
City Clerk
Iowa Citv. Iowa
2. The Mayor is authorized to sign, and the City Clerk to attest, any documentation
necessary to effectuate this conveyance in a form approved by the City Attorney,
and to record the same at EVC Iowa City, L.L.C's expense upon payment of the
purchase price.
Passed and approved this day of 2016.
M,
ATTEST
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NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council
of Iowa City will hold a public hearing on the 6th
day of June, 2016, at 7:00 p.m. in the Emma J.
Harvat Hall of the Iowa City City Hall, 410 E.
Washington Street, Iowa City, Iowa, or if said
meeting is cancelled, at the next meeting of the
City Council thereafter as posted by the City
Clerk; at which hearing the Council will consider
a Resolution Authorizing Conveyance of 1504
Yewell Street, also described as Lot 79,
Kirkwood Heights Addition, Iowa City, Iowa, to an
income -eligible family.
Copies of the proposed resolution are on
file for public examination in the office of the City
Clerk, City Hall, Iowa City, Iowa. Persons wishing
to make their views known for Council
consideration are encouraged to appear at the
above-mentioned time and place.
MARIAN K. KARR, CITY CLERK
r
CITY OF IOWA CITY s
''v�� MEMORANDUM
Date: June 2, 2016
To: Geoff Fruin, Interim City Manager
From: Jann Ream, Code Enforcement Specialist Oz2
Re: 1504 Yewell Street
Introduction:
This agenda item is to convey property condemned by the City as a nuisance property to a
private buyer for purposes of rehabilitation.
History/Background:
The property was abandoned and left vacant by the previous' owner in 2012. City staff
attempted to contact the owner in Arizona many times to determine what her plans were for the
property with no response. Staff then offered to purchase the ,property with no response.
Because of the deteriorating condition of the property, staff recommended that Council declare
it a nuisance and approve authorization through condemnation which Council did at the
November 10th, 2015 City Council regular meeting.
One last attempt to acquire the property through a voluntary sale was made with no response
from the owner, and the City proceeded to condemnation.
On March gt", 2016, the compensation hearing was held at the Johnson County Sheriff's Office
and the compensation jury set the value to be paid at $60,000 which was the appraised value.
The owner did not appear at the compensation hearing. The City acquired title to the property
and advertised the property for sale for rehabilitation. State law requires the City to sell the
property to a buyer that will rehabilitate it or demolish it and construct a new residential unit. The
City set the sale price at $71,000 in order to recoup the price paid for the property and additional
expenses such as payment of liens and back taxes. Three offers were received but only one,
from Quality Home Rentals, LLC, was for the full asking price of $71.,000.
Recommendation:
City staff recommends selling the property to Quality Homes Rentals, LLC. This company has
been remodeling and maintaining property in Iowa City for many.years and has demonstrated
expertise, competence and reliability.
Prepared by: Susan Dulek, Asst. City Attorney; 410 E. Washington St.; Iowa City, IA 52240; (319) 356-5030
RESOLUTION NO.
RESOLUTION AUTHORIZING CONVEYANCE OF THE PROPERTY LOCATED
AT 1504 YEWELL STREET.
WHEREAS, the property at 1504 Yewell Street was declared a public nuisance and acquired by
the City through the eminent domain process for $60,000; an
WHEREAS, state law requires the City to convey the property to a buyer that will either
rehabilitate the home or demolish it and construct a new use; and
WHEREAS, the City s entered into an agreeme , subjec to formal approval by the City
Council, for the sale oft property for $71,000; and
WHEREAS, conveyance f the property will bes reimburse the City for the expenses incurred
and is in the public interest; nd
WHEREAS, on May 17, 201 the City Cc
interest in 1504 Yewell Street, uthorizing p
the date and time for the public h aring; and
WHEREAS, following the public he ing o
the conveyance is in the public intere t.
NOW, THEREFORE, BE IT RESOL D
CITY, IOWA, THAT:
1. Upon the direction of the
execute a warranty deet
described as Lot 79, Kirkyl
2. The City Attorney is
actions necessary to
It was moved by _
adopted, and upon
AYES
Passed and approved this
Approved by
City Attorney's Office
adopted a Resolution proposing to convey its
notice of the proposed conveyance, and setting
the proposed conveyance, the City Council finds that
BY THE CITY COUNCIL OF THE CITY OF IOWA
Atto ey, the Mayor and the City Clerk are authorized to
iveying the City's interest in 1504 Yewell Street, legally
Heights ddition, Iowa City, Iowa.
authorized to eliver said warranty deed and to carry out any
imate the convkyance required by law.
and secondN by
were:
NAYS: ABSENT:
day of
MAYOR
ATTEST:
CITY CLERK
the Resolution be
Botchway
Cole
Dickens
Mims _
y
Taylor
Thomas
Throgmorton
s
'2016.
c�
c�
Publish 5/20
NOTICE OF PUBLIC HEARING OF THE IOWA CITY CITY COUNCIL ON A PURCHASE
AGREEMENT BY AND BETWEEN THE CITY OF IOWA CITY AND ASPEN VENTURES,
LLC FOR THE CITY PROPERTY TO THE NORTH OF CITY HALL THAT IS
CURRENTLY USED AS A PARKING LOT
PUBLIC NOTICE is hereby given that the Iowa City City Council will hold a public
hearing on June 6, 2016, at 7:00 p.m. in Emma Harvat Hall, at City Hall, 410 E. Washington
Street, Iowa City, Iowa, or, if said meeting is cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk, at which meeting the Council proposes to take action on
the proposal to enter into a Purchase Agreement (the "Agreement") with Aspen Ventures, LLC
(the "Developer") whereby the Developer would purchase from the City the property to the
North of City Hall, which is legally -described in the Agreement (the "Property").
The Developer is the owner of the Unitarian Church property at the corner of Iowa
Avenue and Gilbert Street and desires to acquire The Property from the City, preserve the
Unitarian Church and develop the Property for multi -family residential housing, office space, a
multi -story parking facility, and a fire station for use by the City. The Developer has offered to
purchase The Property for the current appraised value of $3,330,000.00. The Agreement is
contingent on the execution of a mutually agreeable Development Agreement for the
redevelopment of The Property and the Unitarian Church site which, in addition to other
mutually -agreeable terms, must include an agreement for design and development of the
combined parcels and the acquisition by the City, by a lease purchase agreement in accordance
with Section 364.4(4) of the Iowa Code, of the fire station, office space and parking facility to be
constructed by Aspen Ventures in accordance with plans and specifications approved by the
City. The Agreement provides that the purchase price may be adjusted by the parties to reflect
any public benefits negotiated in connection with the Development Agreement.
A copy of the Agreement is on file for public inspection during regular business hours in
the office of the City Clerk, City Hall, City of Iowa City, Iowa.
At the above meeting the Council shall receive oral or written comments from any
resident or property owner of said City, to the proposal to enter into the Agreement with the
Developer. After all comments have been received and considered, the Council will at this
meeting or at any adjournment thereof, take additional action on the proposal or will abandon the
proposal to authorize said Agreement.
Dated this 20th day of May, 2016.
Marian K. Karr
City Clerk, City of Iowa City, Iowa
-nm)yCity of Iowa City " `"U ,
MEMORANDUM
Previously distributed as #4e(2)on 5/17/1
Date: May 11, 2016
To; City Council
From: Eleanor M. Dilkes, City Attorne
Re: Property to North of City Hall - Purchase Agreement with Aspen Ventures LLC
Background
Aspen Ventures LLC, by member Jesse Allen, proposes to purchase the property to the
North of City Hall for the development of multi -family residential housing, office space, a
multi -story parking facility, and a fire station for use by the City. The City Manager has
signed a Purchase Agreement that is contingent on City Council approval. Closing on the
Purchase Agreement is then contingent on the execution of a mutually -agreeable
Development Agreement, which shall include agreement regarding the design and
development of the Project, and acquisition by the City of the fire station, office and
parking facility components by a Lease -Purchase Agreement with such components to be
constructed by Aspen Ventures along with the residential components of the project. The
purchase price is for the current appraised value of $3,330,000 and may be adjusted by
the parties to reflect any public benefits negotiated in connection with the Development
Agreement. The details of the Project will be set forth in the Development Agreement and
Lease -Purchase Agreement, both of which must be approved by the City Council.
The legal structure contemplated for this project is the same as that used for the Harrison
Street Parking Facility/Sabin Townhomes Project currently under construction. The
primary difference is that with the former project the land was owned by the Developer.
Here, the land must be transferred to the Developer by the City prior to commencement of
construction. A horizontal property (condominium) regime will be imposed on the Property
that is agreeable to the Developer and the City, and the City will lease -purchase the
condominium unit(s) to be used for the city components from the Developer. With the
exception of the public hearing on the plans, specifications and cost estimates, a contract
for construction by a private party of property to be lease -purchased to a city is not subject
to the public bidding requirements of the state code. However, because it is a financing
mechanism it must be approved in accordance with the bond approval requirements of the
state code. This type of Project requires that detailed cost estimates, plans and
specifications, as well as long term financing must be agreed to and documented in the
Lease -Purchase Agreement and the accompanying documents concerning long term
financing. Because the Lease -Purchase Agreement as well as the Development
Agreement regarding the design and development of the entire Project are contingencies,
the Purchase Agreement provides for a relatively lengthy time for satisfaction of the
contingencies. Closing is to occur no later than January 1, 2017 and the City Manager is
given the authority to extend the closing date for an additional four months without City
Council approval. Staff will keep the Council informed as the project progresses.
Recommendation
As the owner of the Unitarian Church at the corner of Gilbert Street and Iowa Avenue,
Aspen Ventures is uniquely situated to partner with the City for development of the
property to the North of City Hall and has previously shared his concept plans with the
City Council. The partnership, if agreement can be reached, will also result in achieving
May 11, 2016
Page 2
the community objective of preserving the church with landmark designation status.
While there are numerous contingencies in the purchase agreement, it is, in essence, an
agreement between the City and the Developer to work together to come up with a project
that serves the needs of both parties, as well as the public. Staff recommends that the
Council set a public hearing on the Purchase Agreement for June 6, 2016 with
consideration of approval to follow.
Cc: Marian Karr, City Clerk
Geoff Fruin, Interim City Manager
Chris O'Brien, Transportation Director
Doug Boothroy, Neighborhood and Development Services Director
Dennis Bockenstedt, Finance Director