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HomeMy WebLinkAboutCouncil Packet - 2/22/2013BUILDING & GROUNDS COMMITTEE February 11, 2013 5:05 p.m. Council Chambers Roll Call: Members: Chairperson Harold Getty Ron Welper Bob Greenwood Approval of Agenda, as proposed. NEW BUSINESS 1. Approval of the sale of property acquired through 657A located at 2063 Howard Avenue for $1.00 with development agreement stipulating the demolition of existing structure within 3 months and the construction of new industrial building within 24 months of conveyance —Submitted by Noel Anderson, Community Planning & Development Director. 2. Approval of the sale of property acquired through 657A located at 335 Almond Street for a minimum bid of $5,000 with development agreement stipulating the rehabilitation of existing structure within 12 months and the demolition of the existing dilapidated garage within 6 months of conveyance —Submitted by Noel Anderson, Community Planning & Development Director. 3. Approval of Facilities Maintenance Plan with Invision Architecture in the amount of $27,000.00; and forward item to the council agenda for approval —Submitted by Craig Clark, Building Official/Maintenance Administrator. ADJOURNMENT Suzy Schares City Clerk Mayor BUCK CLARK COUNCIL MEMBERS DAVID JONES Ward 1 CAROLYN COLE Ward 2 HAROLD GETTY Ward 3 QUENTIN HART Ward 4 RON WELPER Ward 5 BOB GREENWOOD At -Large STEVE SCHMITT At -Large CITY OF WATERLOO, IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, Iowa 50703-5783 • (319) 291-4366 Fax (319) 291-4262 NOEL C. ANDERSON, Community Planning & Development Director CITY OF WATERLOO Committee Communication Building and Grounds Meeting: February 11, 2013 Prepared: February 5, 2013 Dept. Head Signature: Noel Anderson Community Planning & Development Director # of Attachments: 3 SUBJECT: The sale of property acquired through 657A located at 2063 Howard Avenue for $1.00 with development agreement stipulating the demolition of existing structure within 3 months and the construction of new industrial building within 24 months of conveyance. Submitted by: Noel Anderson Recommended Action: To sell and convey 2063 Howard Avenue for $1.00 plus costs with development agreement to Redzo Karabegovic. Summary Statement Redzo Karabegovic has submitted an application to purchase property at 2063 Howard Avenue that was recently acquired by the city through the 657A process. Mr. Karabegovic has agreed to demolish the building at an estimated $9,000 that would typically be the responsibility of the City of Waterloo. In addition, Mr. Karabegovic will incur costs associated with surveying the property prior to new construction as required by most financial institutions at an estimated $600. The applicant will also incur costs of having an abstract created as the City does not receive abstracts when the 657A process is used. The assessed value is currently listed at $4,900. The applicant plans to construct a new 50'x50' pole building for semi -truck repair at the site within 2 years. The estimated value of the building is $100,000.The applicant has also purchased an existing commercial building at 2057 Howard Avenue adjacent to 2063 Howard Avenue that will be used as office space and truck repair as well as a vacant lot to the rear of 2057 Howard for additional parking. The property in question is zoned "M-1" Light Industrial therefore, the intended use would be a permitted use in the "M-1" Light Industrial District; therefore no rezoning would be needed. Therefore, staff feels that the request meets the Sale of City owned Property Policy. A development agreement will be signed by applicant to ensure the structure is demolished in a timely manner of twelve (3) months of transference. The applicant plans to complete the demolition within 3 months and complete construction within two (2) years. Expenditure Required N/A Policy Issue Dilapidated Housing/lnfill Development Alternative Put property out for bid. Background Information: The City of Waterloo has been working to address the state of disrepair of the property through out the city using Iowa Legislation (657A) that allows cities to take possession of dilapidated and abandoned structures. CITY WEBSITE: wwwci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer (Page 1 of 2) 1111111111 it II' 11 1111 IIII III IIIIIIIIIIIIIIIII III D00 ID 004978340002 Type: OEN Kind: DEED Recorded: 11/21/2012 at 11:06:49 AM Fee Amt: $17.0O Pape 1 of 2 Revenue Tax: $0.00 Black Hank County Iowa JUDITH A MCCARTHY RECORDER F11e2013_00010559 IOWA DISTRICT COURT IN AND FOR BLACK HAWK COUNTY CITY Or WATERLOO, IOWA, 42-6005327 Petitioner, vs. WADE MOOTHART, TAMMI MOOTIIART, and U.S. SMALL BUSINESS ASSOCIATION, Respondents. 2011NOV2I AM 9:?4 i L_rtr. a1 t't;i ; 8LAClt Ii:.11.1; co nY. ina'; No. EQCV 119707 ORDER NOW on this 21'1 day of November, 2012, this matter conics beibre the Court as scheduled for hearing. Present is Attorney David R. Zellhoefer representing the Petitioner, City of Waterloo, Iowa. No other attorneys or Respondents appear. The Court notes that proof of service on all parties has been shown. The Petition and Original Notice were posted on the property located at 2063 Howard Avenue, Waterloo, Iowa, by the Black Hawk County Sheriffs Office on August 15, 2012. Respondents, Wade Moothart and U.S. Small Business Association, were served by certified mail as shown by the Proofs of Service filed with this Court on August 17 and August 20, 2012, respectively. Respondent, Tammi Moothart, accepted service of the Original Notice and Petition, which acceptance was filed with this Court on October 2, 2012. Since no Respondents appear today, they arc hereby found to be in default for want of appearance or answer, File Number: 2013-00010559 Seq: 1 (Page 2 of 2) -2- TI IE COURT MAKES THE FOLLOWING FINDINGS OF FACT: 1. That 2063 Howard Avenue is legally described as: The East One -One halt' of the South One-half of Lot 10 in "Garden Place" in the City of Waterloo, Black Hawk County, Iowa. This is a residence and not a commercial building. There are presently no utilities being provided to the property. The property was extensively damaged during the 2008 floods. No one has maintained the property since then. A good portion of the foundation of the house was washed away by the flood, and it teeters precariously on what is left of the foundation. Windows have been left open and the house has been exposed to the elements. Areas around the windows are beginning to rot away. The house is beginning to decay due to lack o1'care. There is a large presence and accumulation of uncut vegetation on the property. The property does not meet the City's housing code for being fit for human habitation or occupancy. 2. That because of the findings of fact made above, the Court determines that the property is an abandoned building pursuant to Section 65-A.1 OA. IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREE!), that the property cited above is an abandoned property pursuant to Section 657A.10A; judgment is hereby ordered in favor of the Petitioner, City of Waterloo, Iowa, and the Court hereby awards title of this property to the City of Waterloo, Free and clear from any liens and encumbrances. The Clerk shall notify the Black Hawk County Auditor's Office, Assessor's Office, Recorder's Office and Treasurer's Office, so that these offices may take note of this Order and adjust their records accordingly. Court costs shall he taxed to the Petitioner. cc: City of Waterloo Wade and Tammi Moothart Judge the First Judicial District of Iowa File Number: 2013-00010559 Seq: 2 Black Hawk County Detailed Parcel Report Page 1 of 2 BLACK HAWK COUNTY REAL ESTATE ASSESSMENT AND TAX INFORMATION Parcel ID 8913-36-477-008 Deed Holder ITY OF WATERLOO PDF Map Area Ibiiiiract Buyer CWTLO-08 Tax Mail to Address CITY OF WATERLOO 1715 MULBERRY ST 1C�II�TY OWNED WATERLOO, IA 50703-0000 Property Address 2063 HOWARD AV WATERLOO, IA 50702-0000 SALES Date Amount NUTC / Type 9/13/2006 �9,900 NORMAL ARMS -LENGTH TRANSACTION - PRIOR 09 / Deed 10/11/1994 12,000 SALE BETWEEN FAMILY MEMBERS - PRIOR 09 / Deed urgent Recorded Transfer Date Drawn Date Filed Recorded Document Type 11/21/2012 111/21/2012 2013 010559 ID BUILDING PERMIT Date [Number 11/20/2009 IFC 2/12/2008 IWA 00018 Amount Reason 0 1Misc 1,100 (Roof ASSESSED VALUES/CREDITS Year 2012 !Class 100% Value Taxable Value Land Dwelling 4,900 1,000 Building 0 Land 1Dwelling 2,588 •528 M/E b Total 15,900 (Acres 0 BuildingE 0 Total 13,116 Year 2011 100% Value jClass R Land Dwelling !Building 4,900 1,000 0 Taxable 'Land Value 12,487 M/E b Total Acres 5,900 ;Dwelling IBuilding 1508 10 M/E Total 0 12,995 Year Class 2010 100% Value Taxable alue Land '5,240 !Land 222,543 1R Dwelling 1,000 'Dwelling 485 Buildin 0 !Building 0 10 E 1Totai Acres 16,240 0 1 /E 'Total 13,028 TAX INFORMATION ASSESSMENT YEAR 2011 PAYABLE 2012/2013 Tax District I 1940001 - WATERLOO 'Gross Value !Corp 15,900 Nocorp €0 !Corp Nocorp Taxable Value 2,995 0 Homestead Credit $0.00 Military Exemption levy Rate 0 41.58533 Gross Tax $124.55 Net Tax $124.00 i$0.00 Disabled Veteran Credit Property Tax Relief Credit Ag Credit Family Farm Credit $0.00 1$0.00 1$0.00 $0.00 lso.00 1 1 LEGAL GARDEN PLACE E 1/2 S 1/2 LOT 10 http://www2. co.black-hawk. ia.us/website/bhmap/bhRepDet.asp?apn=8913 36477008 1/23/2013 Black Hawk County Detailed Parcel Report Page 2 of 2 LAND Basis Front Front Foot 66 Totals: f Rear 66 Side 1 135 Side 2 '135 1Lot 1 Area 8910 18910 Acres 0.204 10.204 DWELLING CHARACTERISTICS Type Style Single -Family / Owner Occupied 1 Story Frame Year Built 'Area Heat {AC (Attic 11939 j616 (Yes 1No j1/4 Finished Total Rooms Above 'Total Rooms Below Bedrooms Above 'Bedrooms Below 5 10 3 10 Basement Basement Finished Area No Basement Floor Full Foundation Flooring C Blk Carp / Vinyl Exterior Walls 'Interior Finish 'Alum 'Plan Roof AAsph / Gable Non -Base Floor/Wall jPipeless IHandfired (Space Heaters Heating 0 Plumbing 11 Full Bath GARAGES Year Built Style Width Length rea Basement (Qtrs Over 1948 IDet Frame 20 (24 1480 0 'None rea AC 0(I0 BASEMENT STALLS None http://www2.co.black-hawk.ia.us/website/bhmap/bhRepDet.asp?apn=891336477008 1/23/2013 aAV 3)1Oo .and a?dVMOH Preparer Information: Christopher S. Wendland PO Box 596, Waterloo, Iowa 50704 (319) 234.5701 Name Address City Phone SPACE ABOVE THIS LINE FOR RECORDER DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2013 by and between Redzo Karabegovic (the "Company") and the City of Waterloo, Iowa (the "City"). Redzo Karabeqovic is a principal of Company and executes the personal guaranty at the end of this Agreement for the purposes stated therein. RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to finance and deconstruct existing building and related improvements on property located in the Downtown Urban Renewal and Redevelopment Plan located at 2063 Howard Avenue, and legally described on Exhibit "A" attached hereto (the "Property"). AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Sale of Property; Title. Subject to the terms hereof, City shall convey the Property to Company for the sum of $1.00 (the "Purchase Price"). Conveyance shall be by quit claim deed, free and clear of all encumbrances arising by or through City except: (a) easements, conditions and restrictions of record which do not, in Company's opinion, interfere with Company's proposed use; (b) current and future real estate real property taxes and assessments subject to the agreements made herein; (c) general utility and right-of-way easements serving the Property; and (d) restrictions imposed by the City zoning ordinances and other applicable law. City shall have no duty to convey title to Company until Company delivers to City reasonable and satisfactory proof of DEVELOPMENT AGREEMENT Page 2 financial ability to undertake and carry on the Project (defined below), which may take the form of a lending commitment letter. Company shall, at its own expense, prepare an updated abstract of title, or in lieu thereof Company may, at its own expense, obtain whatever form of title evidence it desires. If title is unmarketable or subject to matters not acceptable to Company, and if City does not remedy or remove such objectionable matters in timely fashion following written notice of such objections from Company, Company may terminate this Agreement. City shall provide any title documents it has in its possession, including any abstracts, to assist in title preparation. 2. Timeliness of Construction; Possibility of Reverter. The parties agree that Company's commitment to undertake the Project and to demolish the structure in a timely manner constitutes a material inducement for the City to convey the Property, or to cause the Property to be conveyed, to Company and that without said commitment City would not do so. Measured from the date the Property is deeded to Company, Company must obtain a demolition permit and begin demolition within one (1) month and substantially complete demolition by March 30, 2013. If Company has not, in good faith, begun the demolition of the Improvements on the schedule stated above, then title to the Property shall revert to the City, except as provided in this Agreement; provided, however, that if construction has not begun within the state period but the development of the Project is still imminent, the City Council may, but shall not be required to, consent to an extension of time for the construction of the Improvements, and if an extension is granted but construction of the Improvements has not begun within such extended period, then the title to the Property shall revert to the City after the end of said extended period. If Company determines at any time that the Project is not economically feasible, then after giving thirty (30) days' advance written notice to City, Company may convey the Property to City by special warranty deed, and thereupon neither party shall have any further obligation under this Agreement except as expressly provided. If development has commenced within the required period or any extended period and is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Company, the requirement that construction of the Project shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension then title to the Property shall revert to the City. 3. Reverter of Title; Indemnity. In the event of any reverter of title, Company agrees that it shall, at its own expense, promptly execute all documents, including but not limited to a special warranty deed, or take such other actions as the City may reasonably request to effectuate said reverter and to deliver to City title to the Property that is free and clear of any lien, claim, or encumbrance arising by or through Company. Company shall pay in full, so as to discharge or satisfy, all liens, claims, charges, and encumbrances on or against the Property. If Company fails to deliver such documents, including but not limited to a special warranty deed, to City within thirty (30) days of written demand by City, then City shall be authorized to execute, on DEVELOPMENT AGREEMENT Page 3 Company's behalf and as its attorney -in -fact, the special warranty deed required by this Section, and for such limited purpose Company does hereby constitute and appoint City as its attorney -in -fact. Company further agrees that it shall indemnify City and hold it harmless with respect to any demand, claim, cause of action, damage, or injury made, suffered, or incurred as a result of or in connection with the Project, Company's failure to carry on or complete same, or any lien, claim, charge, or encumbrance on or against the Property of any type or nature whatsoever that attaches to the Property by virtue of Company's ownership of same. If City files suit to enforce the terms of this Agreement and prevails in such suit, then Company shall be liable for all legal expenses, including but not limited to reasonable attorneys' fees. Company's duties of indemnity pursuant to this Section shall survive the expiration, termination or cancellation of this Agreement for any reason. 5. No Encumbrances; Limited Exception. Until completion of the Improvements, Company agrees that it shall not create, incur, or suffer to exist any lien, encumbrance, mortgage, security interest, or charge on the Property, other than such mortgage or mortgages as may be reasonably necessary to finance Company's completion of the Improvements and of which Company notifies City in advance of Company's execution of any such mortgage. Company may not mortgage the Property or any part thereof for any purpose except in connection with financing of the Improvements. 6. Water and Sewer. Company will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 7. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property. Company further agrees that prior to the date set forth in Section 2 of Exhibit "B" it will not seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $ 80,000 (the "Minimum Actual Value"), through: (i) willful destruction of the Property, the Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. Company agrees to sign said attached Exhibit "B" at the closing. DEVELOPMENT AGREEMENT Page 4 8. Reserved 9. Right of First Refusal. 10. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 11. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 12. No Assignment or Conveyance. Company agrees that it will not sell, convey, assign or otherwise transfer its interest in the Property prior to completion of the Project, whether in whole or in part, to any other person or entity without the prior written consent of City. Reasonable grounds for the City to withhold its consent shall include but are not limited to the inability of the proposed transferee to demonstrate to the City's satisfaction that it has the financial ability to observe all of the terms to be performed by Company under this Agreement. 13. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City DEVELOPMENT AGREEMENT Page 5 may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 14. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, to Fischels Holdings LLC, PO Box 567 Gilbertville, Iowa 50634, Attention: Robert A. Fischels. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 15. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 16. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 17. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion DEVELOPMENT AGREEMENT Page 6 thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 18. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 19. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 21. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 22. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA FISCHELS HOLDINGS LLC By: By: Ernest G. Clark, Mayor Redzo Karabegovic Attest: Suzy Schares, City Clerk By: Redzo Karabegovic PERSONAL GUARANTY. The undersigned, being either an officer, shareholder, manager, or member of Company, hereby agree for themselves and their heirs, DEVELOPMENT AGREEMENT Page 7 personal representatives, and assigns, to unconditionally guarantee to City, its successors and assigns, the full and prompt performance by Company, its successors and assigns, of all promises and covenants on the part of Company to be performed pursuant to the foregoing Agreement, including but not limited to the duties of indemnity set forth therein. Liability of guarantors hereunder is joint and several. EXHIBIT "A" Legal Description of Property The east one -one half of the South one half of Lot 10 in "Garden Place" in the City of Waterloo, Black Hawk County, Iowa. Mayor BUCK CLARK COUNCIL MEMBERS CITY OF WATERLOO, IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, Iowa 50703-5783 • (319) 291-4366 Fax (319) 291-4262 NOEL C. ANDERSON, Community Planning & Development Director February 8, 2013 Dear interested developer: The City of Waterloo's Dilapidated Housing Committee has successfully been awarded four properties by the Courts through Iowa Code 657A, which grants cities the power to take possession of dilapidated and abandoned homes. The city is now offering for sale 335 Almond Street, as it has been deemed sound enough for rehabilitation. DAVID The City has set an "As is" minimum bid price of $5,000 and a $1,000 earnest fee per JONES property. Ward 1 CAROLYN COLE Ward 2 HAROLD GETTY Ward 3 QUENTIN HART Ward 4 RON WELPER Ward 5 Attached to this letter you will find a Request for Development Proposal packet relating to the sale of the above -mentioned properties the City of Waterloo acquired as a part of the Dilapidated Housing Committee efforts. I have also attached a detailed report from the Black Hawk County on line website with further details of the property. I would ask that you review the packet and submit the appropriate information in accordance with your development plans for the site. Please note that the reason for the Development Proposal packet is to rehabilitate the property in a way that that is permitted within the zoning district and Land Use Plan for the area, as well as promoting positive development for the City of Waterloo as a whole. Compatibility with the nearby neighborhood and other surrounding uses will also be a key component of the development. Proposals are due by March 5, 2013 by 4 pm to the City Clerks office l8S floor City Hall. BOB If you should have any questions or need any additional information regarding this GREENWOOD matter, please do not hesitate to contact our office and ask for me at 319.291.4366. Thank At -Large you for your cooperation in advance and thank you for your interest in the City of Waterloo. STEVE SCHMITT At -Large Sincerely, Chris Western Planner II Cc: Noel Anderson, Director CITY WEBSITE: wwwci.waterloaia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer REQUEST FOR DEVELOPMENT PROPOSAL CITY OF WATERLOO, IOWA 335 Almond Street The City of Waterloo, Iowa, is inviting proposals for the sale and development of property located at 335 Almond Street The following information details the criteria for submitting a bid for the development of this parcel. Any questions regarding the criteria should be directed to the Community Planning & Development Department for the City of Waterloo. Community Planning & Development Department 715 Mulberry Street - City Hall Waterloo, Iowa 50703 319.291.4366 STATEMENT OF INTENT The City of Waterloo, Iowa, desires to actively assist the private sector in developing this property. The City is offering the following property for development: 335 Almond Street The City intends to allow prospective developers to compete for the acquisition and rehabilitation of this property on the basis of the quality of development as well as price. SUBMISSION REQUIREMENTS Proposals must be submitted in narrative form and be accompanied by legible drawings in order for additional copies to be made. Proposals must also address each of the items listed herein. An offer to bid form is also enclosed with this packet that must be filled out with purchase information. Proposals will be reviewed by the Dilapidated Housing Committee and reported as to how the proposals fit the criteria established within this RFP. The proposal will then be sent to the Building & Grounds Committee for review and recommendation, and ultimately a public hearing will be held by the City Council to consider the recommendation. The City reserves the right to reject any and all proposals and to waive informalities in any proposal. PROPOSALS MUST ADDRESS EACH OF THE FOLLOWING: 1. Proposed Use The proposed development site is zoned "R-3 "Multiple Family District. The proposed use must meet all zoning requirements for a Principal Permitted Use in the "R-3" District Multiple Family District. Intended use following rehabilitation of property must be identified as one of the following categories: • Home owner occupied • Rental • Sale to potential home owner • General sale to any and all interested purchasers 2. Site Development The City feels that the aesthetic treatment of the rehabilitation is extremely important. Therefore, a detailed landscaping plan and construction plan including siding material, accessory structures, etc. must be submitted with proposal. All properties sold shall be rehabilitated as Single-family homes regardless of Zoning District that the property is in. However, a property that was originally built as a duplex or Multi Family structure and/or was legally established at a later date may be rehabilitated as such. Materials Used in Construction Materials must be of good quality and, in visual appearance, match existing woodwork through out house. For example, crown molding or door/window trim must have the same appearance and finish as existing molding or trim, unless all molding or trim in a room is replaced. 3. Financial Capacity The proposed developer must provide evidence of financial ability to timely commence and complete the project. This information shall be kept confidential and may be by letter of intent from bank for financing or other similar documentation. As security for completion of the project, the Developer will be required to post a performance bond in the sum of $10,000 per property, in form acceptable to the City, or place $10,000 dollars per property in a non -interest bearing escrow account with the Law office of Clark, Butler, Walsh, and Hamann. If the project is not completed and either the structure(s) have to be demolished or the project has to be completed by the City, then the City may, as appropriate, enforce the bond or use the per -property escrowed sum to defray the actual costs and expenses incurred by the City. As to escrowed funds, the Developer may request, at a rate of not more than $10,000 per home, a full reimbursement of such funds as (a) each home is completed in accordance with the terms and conditions of the development agreement, (b) the home has passed the 12 month inspection, and (c) an occupancy permit has been acquired. In addition, the Developer must submit with its bid proposal a certified check or money order in the amount of $1,000 per property as earnest money for the purchase. Earnest money will be included in the purchase price at closing. 4. Project Team The proposal must list the names, addresses, and daytime phone numbers of the persons with a financial interest in the project. The proposal shall also include any relevant experience that demonstrates the ability to complete this project. 5. Timetable The development project must commence construction within three (3) months and be completed within twelve (12) months from the date of possession. If, after transfer of the property by the City to developer, construction is not commencing in accordance with the 3. Financial Capacity The proposed developer must provide evidence of financial ability to timely commence and complete the project. This information shall be kept confidential and may be by letter of intent from bank for financing or other similar documentation. Developer will be required to place $25,000 dollars in an escrow account with the Law office of Clark, Butler, Walsh, and Hamann, in the event the project is not completed and the structure(s) have to be demolished or project completed by the city. 4. Project Team The proposal must list the names, addresses, and daytime phone numbers of the persons with a financial interest in the project. The proposal shall also include any relevant experience that demonstrates the ability to complete this project. 5. Timetable The development project must commence construction within three (3) months and be completed within twelve (12) months from the date of possession. If, after transfer of the property by the City to developer, construction is not commencing in accordance with the attached schedule as described, the title to the real estate will revert to City of Waterloo, free of any liens, encumbrances, etc. against said property. Developer agrees to sign all necessary documents for said reversion. If construction is not completed, at the end of twelve (12) months, but the development of the project is still imminent, the City Council may but shall not be required to grant an extension of time for the rehabilitation of the building. 6. Bid Price The City of Waterloo has determined, that the minimum bid value of this property is: $5,000 However, once the minimum bid price of $5,000 is met, the primary criteria shall be the quality and type of the construction rather than the purchase price. NOTES: A site plan, including landscaping and a perspective complete list of intended construction and improvements must be included with the narrative proposal. All properties sold shall be rehabilitated as Single-family homes regardless of Zoning District that the property is in. However, a property that was originally built as a duplex or Multi Family structure and/or was legally established at a later date may be rehabilitated as such. The enclosed Offer form included therein must also be submitted with the narrative proposal. An earnest fee of $1,000.00 per property is also needed with the Offer to Buy form. Review Criteria The categories to be used in evaluating the proposals include but are not limited to the following: 1.) Proposed Land Use (Proposed construction will be reviewed for their compatibility and appropriateness for site. 2.) Quality of Proposed Development (Probable assessed value of any proposed new structures (ie: garage) and improvements will be weighed with offering price to determine full impact of community benefits: offer price + taxes paid). 3.) Architectural and Aesthetic Design Considerations (Design considerations ie: windows, siding, site layout, driveway (gravel or paved), and accessory structures). 4.) Price (While the price will not be sole determining factor, it will be an important part of the equation, in conjunction with other criteria, to assure the City as whole they are serving the citizenry in a fair and beneficial manner). 5.) Homeownership is a priority to the City of Waterloo; therefore any bidders that plan to live in the property after rehabilitation is complete or sell to homeowner will be scored higher. City of Waterloo Property Bid Sheet Property to be bid upon: 335 Almond Street Name in which property would be transferred: Name of bidder: Address of bidder: Phone & Fax number of bidder: My offer for property being bid upon: $1,000.00 earnest fee: (Note: this amount is refundable for unsuccessful bidders. The fee will not be refunded for successful bidders who withdraw their offer. Also, it is required that the earnest fee be paid per property if bidding on multiple properties.) Brief Description of intended Improvements: Furthermore, I understand the zoning designation of the property and building code requirements that I am bound by this designation for my use of property. Note: The successful bidder will be required to sign a Development Agreement binding them to the specified completion deadline of twelve (12) Months. Signature of applicant/ bidder Date * Please Place this sheet at the beginning of your bid packet when submitting to Clerks office. CITY OF WATERLOO Building & Ground Communication City Council Meeting: February 11. 2013 Prepared: February 5, 2013 Dept. Head Signature: # of Attachments: SUBJECT: Facilities Maintenance Plan - Five Sullivan Brothers Convention Center Submitted by: Craig Clark - Building OfficiaVMaintenance Administrator Recommended City Council Action: Resolution approving Facilities Maintenance Plan with Invision Architecture in the amount of $27,000.00. Summary Statement: Expenditure Required: $27,000.00 Source of Funds 412-22-4900-2152 Background Information: The Facility Maintenance Plan is a 5 year plan to help renovate the facility. It will provide a strategy to develop the facility for the changing needs of downtown Waterloo. This plan will assist us as we work toward the end design goal in multiple stages. For example, if a bathroom needs renovated, we would do so to the 5 year conceptual plan and not waste money on things that are not within this plan. MARIA ARMSTRONG From: CRAIG CLARK Sent: Wednesday, February 06, 2013 4:06 PM To: MARIA ARMSTRONG Subject: Building & Ground Communication Attachments: Council Comm - 5 Sul Bros Maint Plan Invision 2-5-13 (2).doc Sorry so late Thanks Craig Clark Building Official / Maintenance Admin. City of Waterloo 715 Mulberry St Waterloo, IA 50703 319-291-4319 craig.clark@waterloo-ia. orq Preparer Information: Christopher S. Wendland, PO Box 596, Waterloo, Iowa 50704 (319) 234.5701 Name Address City Phone SPACE ABOVE THIS LINE FOR RECORDER DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of , 2013 by and between Redzo Karabegovic (the "Company") and the City of Waterloo, Iowa (the "City"). Redzo Karabegovic is a principal of Company and executes the personal guaranty at the end of this Agreement for the purposes stated therein. RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to finance and deconstruct existing building and related improvements on property located in the Downtown Urban Renewal and Redevelopment Plan located at 2063 Howard Avenue, and legally described on Exhibit "A" attached hereto (the "Property"). AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Sale of Property; Title. Subject to the terms hereof, City shall convey the Property to Company for the sum of $1.00 (the "Purchase Price"). Conveyance shall be by quit claim deed, free and clear of all encumbrances arising by or through City except: (a) easements, conditions and restrictions of record which do not, in Company's opinion, interfere with Company's proposed use; (b) current and future real estate real property taxes and assessments subject to the agreements made herein; (c) general utility and right-of-way easements serving the Property; and (d) restrictions imposed by the City zoning ordinances and other applicable law. City shall have no duty to convey title to Company until Company delivers to City reasonable and satisfactory proof of DEVELOPMENT AGREEMENT Page 2 financial ability to undertake and carry on the Project (defined below), which may take the form of a lending commitment letter. Company shall, at its own expense, prepare an updated abstract of title, or in lieu thereof Company may, at its own expense, obtain whatever form of title evidence it desires. If title is unmarketable or subject to matters not acceptable to Company, and if City does not remedy or remove such objectionable matters in timely fashion following written notice of such objections from Company, Company may terminate this Agreement. City shall provide any title documents it has in its possession, including any abstracts, to assist in title preparation. 2. Timeliness of Construction; Possibility of Reverter. The parties agree that Company's commitment to undertake the Project and to demolish the structure in a timely manner constitutes a material inducement for the City to convey the Property, or to cause the Property to be conveyed, to Company and that without said commitment City would not do so. Measured from the date the Property is deeded to Company, Company must obtain a demolition permit and begin demolition within one (1) month and substantially complete demolition by March 30, 2013. If Company has not, in good faith, begun the demolition of the Improvements on the schedule stated above, then title to the Property shall revert to the City, except as provided in this Agreement; provided, however, that if construction has not begun within the state period but the development of the Project is still imminent, the City Council may, but shall not be required to, consent to an extension of time for the construction of the Improvements, and if an extension is granted but construction of the Improvements has not begun within such extended period, then the title to the Property shall revert to the City after the end of said extended period. If Company determines at any time that the Project is not economically feasible, then after giving thirty (30) days' advance written notice to City, Company may convey the Property to City by special warranty deed, and thereupon neither party shall have any further obligation under this Agreement except as expressly provided. If development has commenced within the required period or any extended period and is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Company, the requirement that construction of the Project shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension then title to the Property shall revert to the City. 3. Reverter of Title; Indemnity. In the event of any reverter of title, Company agrees that it shall, at its own expense, promptly execute all documents, including but not limited to a special warranty deed, or take such other actions as the City may reasonably request to effectuate said reverter and to deliver to City title to the Property that is free and clear of any lien, claim, or encumbrance arising by or through Company. Company shall pay in full, so as to discharge or satisfy, all liens, claims, charges, and encumbrances on or against the Property. If Company fails to deliver such documents, including but not limited to a special warranty deed, to City within thirty (30) days of written demand by City, then City shall be authorized to execute, on DEVELOPMENT AGREEMENT Page 3 Company's behalf and as its attorney -in -fact, the special warranty deed required by this Section, and for such limited purpose Company does hereby constitute and appoint City as its attorney -in -fact. Company further agrees that it shall indemnify City and hold it harmless with respect to any demand, claim, cause of action, damage, or injury made, suffered, or incurred as a result of or in connection with the Project, Company's failure to carry on or complete same, or any lien, claim, charge, or encumbrance on or against the Property of any type or nature whatsoever that attaches to the Property by virtue of Company's ownership of same. If City files suit to enforce the terms of this Agreement and prevails in such suit, then Company shall be liable for all legal expenses, including but not limited to reasonable attorneys' fees. Company's duties of indemnity pursuant to this Section shall survive the expiration, termination or cancellation of this Agreement for any reason. 5. No Encumbrances; Limited Exception. Until completion of the Improvements, Company agrees that it shall not create, incur, or suffer to exist any lien, encumbrance, mortgage, security interest, or charge on the Property, other than such mortgage or mortgages as may be reasonably necessary to finance Company's completion of the Improvements and of which Company notifies City in advance of Company's execution of any such mortgage. Company may not mortgage the Property or any part thereof for any purpose except in connection with financing of the Improvements. 6. Water and Sewer. Company will be responsible for extending water and sewer service to any location on the Property and for payment of any associated connection fees. 7. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property. Company further agrees that prior to the date set forth in Section 2 of Exhibit "B" it will not seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $ 80,000 (the "Minimum Actual Value"), through: (i) willful destruction of the Property, the Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. Company agrees to sign said attached Exhibit "B" at the closing. DEVELOPMENT AGREEMENT Page 4 8. Reserved 9. Right of First Refusal. 10. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 11. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 12. No Assignment or Conveyance. Company agrees that it will not sell, convey, assign or otherwise transfer its interest in the Property prior to completion of the Project, whether in whole or in part, to any other person or entity without the prior written consent of City. Reasonable grounds for the City to withhold its consent shall include but are not limited to the inability of the proposed transferee to demonstrate to the City's satisfaction that it has the financial ability to observe all of the terms to be performed by Company under this Agreement. 13. Materiality of Company's Promises, Covenants, Representations, and Warranties. Each and every promise, covenant, representation, and warranty set forth in this Agreement on the part of Company to be performed is a material term of this Agreement, and each and every such promise, covenant, representation, and warranty constitutes a material inducement for City to enter this Agreement. Company acknowledges that without such promises, covenants, representations, and warranties, City would not have entered this Agreement. Upon breach of any promise or covenant, or in the event of the incorrectness or falsity of any representation or warranty, City DEVELOPMENT AGREEMENT Page 5 may, at its sole option and in addition to any other right or remedy available to it, terminate this Agreement and declare it null and void. 14. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, to Fischels Holdings LLC, PO Box 567 Gilbertville, Iowa 50634, Attention: Robert A. Fischels. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. A party may change the address for giving notice by any method set forth in this section. 15. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 16. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 17. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion DEVELOPMENT AGREEMENT Page 6 thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 18. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 19. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 21. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 22. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA FISCHELS HOLDINGS LLC By: By: Ernest G. Clark, Mayor Redzo Karabegovic Attest: Suzy Schares, City Clerk By: Redzo Karabegovic PERSONAL GUARANTY. The undersigned, being either an officer, shareholder, manager, or member of Company, hereby agree for themselves and their heirs, DEVELOPMENT AGREEMENT Page 7 personal representatives, and assigns, to unconditionally guarantee to City, its successors and assigns, the full and prompt performance by Company, its successors and assigns, of all promises and covenants on the part of Company to be performed pursuant to the foregoing Agreement, including but not limited to the duties of indemnity set forth therein. Liability of guarantors hereunder is joint and several. EXHIBIT "A" Legal Description of Property The east one -one half of the South one half of Lot 10 in "Garden Place" in the City of Waterloo, Black Hawk County, Iowa. MARIA ARMSTRONG From: CHRIS WESTERN Sent: Wednesday, February 06, 2013 9:15 AM To: MARIA Sifteet: Council Items Okay Maria. Could we put these two items of Building and Grounds Committee for Monday February 11, 2013. Thanks Committee Communication Building and Grounds Meeting: February 11, 2013 Prepared: February 5, 2013 Dept. Head Signature: Noel Anderson Community Planning & Development Director # of Attachments: 3 SUBJECT: The sale of property acquired through 657A located at 2063 Howard Avenue for $1.00 with development agreement stipulating the demolition of existing structure within 3 months and the construction of new industrial building within 24 months of conveyance. Committee Communication Building and Grounds Meeting: February 11, 2013 Prepared: February 5, 2013 Dept. Head Signature: Noel Anderson Community Planning & Development Director # of Attachments: 3 SUBJECT: The sale of property acquired through 657A located at 335 Almond Street for a minimum bid of $5,000 with development agreement stipulating the rehabilitation of existing structure within 12 months and the demolition of the existing dilapidated garage within 6 months of conveyance. Chris W. Western Planner II/Brownfield Coordinator City of Waterloo Office 319-291-4366 Fax 319-291-4262 i