HomeMy WebLinkAbout2018-04-02 Public hearing11
NOTICE OF PUBLIC HEARING
Notice is hereby given that the Iowa City City
Council will hold a public hearing on the 2nd day
of April, 2018, at 7:00 p.m. in Emma J. Harvat Hall
in City Hall, 410 E. Washington, Iowa City, Iowa,
or if said meeting is cancelled, at the next meeting
of the Iowa City City Council thereafter as posted
by the City Clerk; at which hearing the City Council
will consider a resolution approving the sale of
Outlot B, consisting of approximately .42 acres, at
the northwest corner of Ruppert Road and
Frontage Road in Iowa City.
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.
Kellie Fruehling, City Clerk
r r 1 CITY OF IOWA CI 04-02-18
COUNCIL ACTION REPO
March 20, 2017
Resolution setting a public hearing for April 3, 2018 to consider the sale
of City property north of the Iowa City Municipal Airport to Harry Hinckley
Prepared By: Michael Tharp, Airport Operations Specialist
Reviewed By: Eric Goers, Assistant City Attorney
Geoff Fruin, City Manager
Fiscal Impact: $20,000 in revenue for use on Airport Improvement Program projects
Recommendations: Staff: Approval
Commission: Airport Commission — Recommend Approval
Attachments: Resolution
Executive Summary:
The City received a purchase offer from Harry Hinckley to sell North Commerce Park, Outlot B
to Mr. Hinckley. This parcel is adjacent to the Alexis Park Inn and Ruppert Road. The parcel
was part of a larger purchase that was made with FAA Grant funds.
Background / Analysis:
The Airport Commission considered this offer at their meeting on June 27, 2017. The Airport
Commission recommended accepting the purchase offer 3-0 with two members absent.
Federal Aviation Administration (FAA) has published notice of the release request in the
federal register on March 8, 2018 subject to a 30 -day comment period.
The Airport Commission anticipates that the FAA will approve this request contingent on 2
requirements:
1. That the Airport Commission obtain an air rights easement to prevent any future
airport obstructions being built on the property for sale; and
2. That sale proceeds be used solely for an Airport Improvement Program (AIP) eligible
project.
r CITY OF IOWA CITY
-r� COUNCIL ACTION REPORT
Prepared by: Enc R. Goers, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution app
Harry Hinckley.
Whereas, Harry Hip
Airport, wishes to pt
Road and Frontage
RESOLUTION NO.
sale of City property north of the Iowa City Municipal Airport to
owner of Alexis Park Inn, imr
utlot B, North Airport Develop
gsisting of approximately .42
Whereas, Outlot B is controlled y the Iowa City Mi
has use for the property; and whic has negotiated a
reserving easements as necessary 19 protect Airport
Whereas, Outlot B was purchased w
approved of the sale, as long as the
Whereas, the sale is in the best interests
Now, Therefore, be it resolved by the
1. The attached Counteroffer with Harry
2. The Mayor and the City Clerk are autt
Counteroffer attached hereto.
;ly north of the Iowa City Municipal
at the northwest corner of Ruppert
and
bl Airport Commission, which no longer
subject to Council approval, for $20,000,
ations; and
1 from JAe Federal Aviation Administration, which has
are Loed for airport improvement projects; and
Council of the City of Iowa City, Iowa, that:
the sale of Outlot B is approved.
to respectively execute and attest the
0
Passed and approved this day of , 2018 m
b.y �
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Clerk
Mayor
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Approved by c
3 a o��on
City Attorney's Office
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COUNTER-OFFER ..n
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TO: Harry Hinckley ("Buyer"). D=� No r
The City of Iowa City, Iowa, a municipal corporation ("Seller"), makes the followouatsr-Olfet to
the Offer to Purchase Vacant Land by Buyer for Outlot B, North Airport Developmas70 0
D O
Harry Hinckley (herein "Buyer") hereby offers to buy, and the undersigned Seller, by its acceptance
of this Agreement, a es to sell the real property situated in Iowa City, Johnson County, Iowa, locally
known as Outlot B, rth Airport Development, Iowa City, Iowa together with all the Seller's right,
title and interest in all b 'dings and improvements, if any located o the above-described real estate, and
subject to any easements d appurtenant servitudes for the bene t of the Seller, free and clear of all
liens, encumbrances, reserva 'ons, exceptions and modifications, cept for the Permitted Exceptions, as
defined below. The entirety o e above-described interests bein conveyed shall hereinafter be referred
to as the "Property".
The Property shall be conveyed with
Exceptions:
1. Zoning and building laws and or
2. covenants, restrictions, reservaW
Surface and Overhead Avigation
In consideration of the covenants and
clear and
and
1. PURCHASE PRICE. The Purchase Price
the time of closing, all title objections being corn
2. REAL ESTATE TAXES. Seller shall p
the real estate taxes for the fiscal year in which
year, and all unpaid taxes for prior' e'
valuation, legislative tax rollback and real e2ya the calculation of taxes payable in the fiscal
tax rate has not been certified, then the most
and
title, subject to the following Permitted
record approved by Buyer, including FAA
herein, the Seller and Buyer agree as follows:
Property shall be $20,000, to be paid in full at
show marketable title.
y the rorated share, based upon the date of closing, of
osing ccurs, due and payable in the subsequent fiscal
amour shall be calculated based upon the assessed
tax exem tions that may be applicable to and used for
commenc' July 1, 2018. If, at the time of closing, the
nt certified rate shall be used.
3. SPECIAL ASSESSMENTS. Seller shall pay all instal is of special assessments which have
been certified to the Johnson County T surer for collection ore the Closing date. All charges for
solid waste removal, sewage and maint fiance that are attributable Seller's possession, including those
for which assessments arise after cl ing, shall be paid by Bu*r. Any preliminary or deficiency
assessment which cannot be discharg d by payment shall be paid b Buyer through an escrow account
with sufficient funds to pay such lien when payable, with any unused f4nds returned to Buyer.
4. RISK OF LOSS AND INS CE. Seller shall bear the risk o loss or damage to the Property
prior to closing or possession, w chever first occurs. Seller agrees to m ' tain existing insurance until
closing or possession, whicheve first occurs. Buyer may also insure the Property prior to closing or
possession. The Property shall b preserved in its present condition, ordin wear and tear excepted, and
Seller shall deliver it intact at a time the Buyer takes possession. Prior to the Buyer taking possession,
Seller shall promptly give w ' en notice to the Buyer of any loss or damage to the Property. In the event
of loss, damage or destru ' n of all or part of the Property, the Buyer shall have the option to terminate
this Agreement effective immediately. However, in the case of loss, damage or destruction of all or part
of the Property from causes covered by insurance, the Buyer shall have the option to either 1) take
possession of the Property and accept an assignment of all Seller's right, title and interest in and to any
claims Seller has under the insurance policies covering the Property; or 2) terminate this Agreement
effective immediately.
5. POSSESSION AND CLOSING. If Seller timely performs all obligations, possession of the
Property shall be delivered to Buyer within 30 days of City Council and FAA approval, and any
adjustments of rent, insurance, taxes, interest and all charges attributable to the Seller's possession shall
be made as of the date of closing. Closing shall occur after approval of title by Buyer's attorney and
vacation of the Property Seller. Seller agrees to permit Buyer to inspect the Property within 48 hours
prior to closing to assure t the premises are in the condition required by this Agreement. If possession
is given on a day other than osing, the parties shall make a separate f reement with adjustments as of
the date of possession.
6. FIXTURES. Included with the Property shall be all fillures that integrally belong to, are
specifically adapted to or are a par[ `of the real estate, whether a ched or detached, such as: fencing,
gates, bushes, trees, shrubs and plants.\
7. ABSTRACT AND TITLE. Seller,'at Buyer's expense,
the Property continued through the date of acceptance of 1
attorney for examination. It shall show merchantable title in
Iowa law, and Title Standards of the Iowa State, Bar Associati
effort to promptly perfect title. If closing is delayed due to
this Agreement shall continue in force and effect until either
days written notice to the other party. The abstract shall be on
price is paid in full. Seller shall pay the costs of any add it" nal
omission of Seller, including transfers by or the death of eller
sh 1 promptly obtain an abstract of title to
hi Agreement, and deliver it to Buyers
ller in conformity with this Agreement,
n. The Seller shall make every reasonable
:11er's inability to provide marketable title,
rty rescinds the Agreement after giving ten
e the property of Buyer when the purchase
abstracting and title work due to any act or
or their assignees.
8. SURVEY. Buyer, at Buyer's expense, m# have the Property surveyed and certified by a
Registered Land Surveyor. If the survey shows any croac ent on the Property or if any improvements
located on the Property encroach on lands oro the the encr chments shall be treated as a title defect. If
the survey is required under Chapter 354, Buyer s pay the st thereof.
9. ENVIRONMENTAL MATTERS. (a) uyer is purchas g the Property in its present condition
with no warranties or representations firm a Seller regarding a condition of the property. Seller
warrants that the Property is not subject to y local, state, or fed judicial or administrative action,
investigation or order, as the case may be, arding wells, solid wast disposal sites, hazardous wastes or
substances, or underground storage tanks. (b) Buyer may, at its ex se, within 10 days after the date
of acceptance, obtain a report from a q fled engineer or other person qualified to analyze the existence
or nature of any hazardous materiV-Agreement
bstances, conditions or wastes sated on the Property. In the
event any hazardous materials, subs, conditions or wastes are disc ered on the Property, Buyer
shall have the option to terminate effective immediately o to remove them at Buyer's
sole cost.
10. DEED. Upon payment of the purchase price, Seller shall convey a Property ($,'Buyer by
Warranty Deed, free and clear fall liens, restrictions, and encumbrances ex ttpc proNQW in this
Agreement. General warranties f title shall extend to the time of delivery of the eg £3ce�ag lien�}r
encumbrances suffered or pe 'tted by Buyer. ""t �—
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11. USE OF PURCHASE PRICE. At time of settlement, funds of the purchase pq m%be umo
pay taxes and other liens and to acquire outstanding interests, if any, of others. o M = v
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12. REMEDIES OF THE PARTIES. A. If Buyer fails to timely perform this Agreement, Seller may
forfeit it as provided in the Iowa Code (Chapter 656), and all payments made shall be forfeited; or, at
Seller's option, upon thirty days written notice of intention to accelerate the payment of the entire balance
because of Buyer's default (during which thirty days the default is not corrected), Seller may declare the
entire balance immediately due and payable. Thereafter this agreement may be foreclosed in equity and
the Court may appoint a receiver.
B. If Seller fails to t' ly perform this Agreement, Buyer has the right to have all payments made
returned to them.
C. Buyer and Seller are also\aptitled to utilize any and all otherdattomey
edies or actions at law or in equity
available to them and shall be entitled to obtain judgment for costs fees as permitted by law.
13. NOTICE. Any notice under Ns Agreement shall be in w 'ting and be deemed served when it is
delivered by personal delivery or by certified mail return receipt uested, addressed to the parties at the
following addresses: Seller, City of Iowa ity, City Clerk, 410 . Washington, Iowa City, Iowa 52240;
Buyer, Harry Hinckley, 2262 Jessica Lane, oralville, IA 5224 .
14. GENERAL PROVISIONS. In the perN
the essence. Failure to promptly assert rights h,
waiver of any existing or subsequent default. T
interest of the parties. This Agreement shall sur
of reference and shall not limit or affect the me
be construed as in the singular or plural number,
the context.
nce of ch part of this Agreement, time shall be of
shall ot, however, be a waiver of such rights or a
Lgregluent shall apply to and bind the successors in
he losing. Paragraph headings are for convenience
f this Agreement. Words and phrases herein shall
s asculine, feminine or neuter gender according to
15. CITY COUNCIL APPROVAL. This ag "ent is lrbject to approval by the City Council of
Iowa City as required by Section 364.7 of the 96de of Iowa. \
16. FAA RELEASE. This agreement ' subject to the FAA
Property. If the FAA does not release the operty by July 1, 20 ,
All other terms of the Offer to Purch a Vacant Land submitted by
of the Counter -Offer shall remain same.
TbisrGounter8ffer shall expire
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�Accept e°his day of _
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BUYER
Harry Hinckley
p.m. on April 2, 2018.
2018.
ting the City a release to sell the
this agreement shall be null and void.
not inconsistent with the terms
CITY OF IOWA (7, IOWA, SELLER
BY:
Geoff Fmin
City Manager
Date
Approved By
City Attorney's Office
Airport Division
FAA Central Region
Validated 09/2012
Suggested Template for Avigation Easements
We have provided this sample Avigation Easement language to assist Sponsors with the preparation of an
agreement for their specific location and situation. We recommend Sponsors furnish this sample language to their
attorney tasked with preparing the actual Avigation Easement.
Limitations of Use
The FAA's provision of this sample language serves as a starting point for the Sponsor for preparing their
customized avigation easement. Sponsors must not construe provision of this sample document as being
complete and legally sufficient. Sponsors are solely responsible for verifying the legal status of all contractual
matters, including establishment of avigation easements.
WHEREAS, (Prop Owner), hereinafter called
of the following speci tally described parcel of la
State):
(Metes &�ounds description o4
hereinafter called "Grantors' bkovertv" and out
NOW, THEREFORE, in
other good and valuable cc
hereby acknowledged, the Grantors,)
executors, successors and assigns do
and benefits to the (Name of Airport)
and benefit of the public.
are the fee owners
situated in (City, County &
parcel)
on an attached Exhibit A map.
n of sum of $ and
the r ceipt and sufficiency of which is
th elves, their heirs, administrators,
e y grant the following appurtenant rights
e inafter called the "Grantee" for the use
The appurtenant rights and be efits in ude the uses, rights
described as follows:
The unobstructed use and passaof all types of 'rcraft in and th
airspace at any height or altitud above the surface f the land.
The right of said aircraft to
particles (incidental to the 1
sleep or communication,
operation of aircraft taki*
c#se noise, vibrations, fui
&mal operation of aircraft
id any other effects associat
off, landing or operating in
H
n
deposits of dusl,ifilel
ar, interference with
vith the normal
Vicinity of (Airport).
As used herein, the tefm "aircraft" shall mean any and all tylof aircraft, whether
now in existence or hereafter manufactured and developed, toclude jet,
propeller -driven, civil, military or commercial aircraft; helicop rs, regardless of
existing or future noise levels, for the purpose of transporting persons or property
through the air, by whoever owned or operated.
Airport Division Validated 09/2012
FAA Central Region
In granting this easement, the Grantors agree to make no modifications to the
following "accepted" existing structures lying within the bounds of the easement
area of the Grantors' property.
(Example: 20' x 25' utility shed, see attached Exhibit A map)
The Grantors --agree that during the life of this easement, they will not construct,
erect, suffer to permit or allow any structure or tre
property. The Grantors may not permit any places
within the easement a. (Examples: churches, s
hospitals, restaurants, st iums, office buildings
to continue to grow and h est crops or graze 1' 1
The Grantors agree to keep thews
(permanent or temporary) that A
residences, fuel handling and stora
creation of any means of electrical
aircraft over the easement area.
Grantors agree to waive all damages
be caused by the Grantors violation <
(Airport) has a perpetual right of in
to remove any new structure or veg
as "accepted." //
TO HAVE AND TO HOLD
appertaining thereto unto the
(Airport) shall be abandoned
It is understoodand agreed
shall be binding upon the G 1
on the surface of the burdened
'public assembly or gatherings
ools, day care facilities,
) The Grantors are permitted
ock in the easement area
lent areayfree of the following: structures
create Oare or contain misleading lights;
facili es and smoke generating activities and
terfel6nce that could effect the movement of
for damages caused or alleged to
;t of this easement document. The
in the easement area and the right
s not specifically mentioned above
A easement and nt of way, and all rights
antee, its successo and assigns, until said
d shall cease to be us for public airport purposes.
all provisions herein shall run with the land and
their heirs,
successors and assigns unt' such time that the easement
IN WITNESS WHERE , the grantors have hereunto set
this da of , 20_
and subordination prac ces must also be met. If subordin
)rs, executors,
extinguished.
hands and seals
,ocal recordation
is necessary in
which case the mortgahee must join in the agreement, a statemt must be made to
assure that the mortgdee is subordinate to the Easement and the EasementM
recording superior grid prior to lien in said mortgage without consiioaf
thg-
date of the mortgage instrument) 0
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