HomeMy WebLinkAboutA103 - Council Action Form dated March 26, 2019 - Release for Lots 10, 11, 17, 22, and 23 ITEM # 22
DATE: 3-26-19
COUNCIL ACTION FORM
SUBJECT: RELEASE OF RIGHTS PURSUANT TO EASTGATE SUBDIVISION
COVENANT FOR ASSESSMENT OF COSTS AND IMPROVEMENTS
FOR LOTS 10, 11, 17, 22, AND 23
BACKGROUND:
Lots 10, 11, 17, 22, and 23 in Eastgate Subdivision were recently sold for development.
In 1998, the original Eastgate developer signed a Development Agreement promising
payment for improvements to roads and utilities in the Subdivision. The development
was then the subject of a bankruptcy proceeding; and in 2001, the City entered into a
Covenant that modified the owner's public infrastructure obligations. The property was
ultimately acquired by First National Bank through the bankruptcy proceeding.
The Covenant requires payment to the City for the estimated costs of widening Dayton
Avenue for a turn lane and for connections to water and sewer service. This payment is
to be made upon the sale or transfer of each lot. The Covenant prorates the amount
owed for each lot on the basis of the lot's land area. In 2005, First National Bank paid
the outstanding utility tapping fees owed on the lots, leaving only the road widening
assessment outstanding. Per the schedule of fees owed to the City, a total of $33,180
was owed for Lots 10, 11, 17, 22, and 23. That amount has now been paid to the City
and a Release is necessary so that the purchaser of the lots can close on the
properties.
ALTERNATIVES:
1. Accept payment as above-noted and authorize the Release of Rights Pursuant to
Eastgate Subdivision Covenant for Assessment of Costs and Improvements for Lots
10, 11, 17, 22, and 23.
2. Do not accept payment and do not authorize the Releases.
CITY MANAGER'S RECOMMENDED ACTION:
The Developer's Agreement and Covenant regarding Eastgate Subdivision requires
payment for road widening costs upon the sale or transfer of lots. The buyer of Lots 10,
11, 17, 22, and 23 in Eastgate Subdivision has now remitted payment to the City in the
required total amount.
Therefore, it is the recommendation of the City Manager that the City Council approve
Alternative No. 1 as described above.
Eastgate Subdivision Improvement Outstanding Fees to City
Dayton Ave.
Assessor Code Address Lot No. Cost Alloc.
Ahlrl
05-36-478-040 1428 Boston Ave. 8 $6,510.00fL
05-36-478-030 1506 Boston Ave. 9 $6,510.00
05-36-478-020 1514 Boston Ave. (-1.0' , 6 $6,510.00
05-36-478-010 1522 Boston Ave, 11 $6,510.00
05-36-476-060 1519 Baltimore Dr. 12 $13,860.00
05-36-476-050 1511 Baltimore Dr, 13 $13,860.00
05-36-476-040 1509 Baltimore Dr. 14 $38,010.00
05-36-476-030 1425 Baltimore Dr. 15 $6,930.00
05-36-476-020 1415 Baltimore Dr. 16 $6,930.00
05-36-476-010 1405 Baltimore Dr.r��17 ) $6,930.00
05-36-480-030 142.9 Boston Ave. 21 $6,930,00 l
05-36-480-020 1510 Baltimore Dr r 2f $6,300.00
..
05-36-480-010 1502 Baltimore Dr. 23 $6,930.00
$132,720.00
Thanks,
VC,
Duane
Duane Pitcher, CPA, CPFO vo_ , ultt,
Director of Finance C
City of Ames
515 Clark Avenue �-
P.O. Box 811
Ames, Iowa 50010
`one(515)239-5114
2
I
FIRST NATIONAL SAWES. 25000
AM IOWA
FRIEDRICH/IOWA REALTY 72-Wrr3s
TRUST ACCOUNT March 01,2019
100 SIXTH STREET • AMES,IOWA 60010a
G sss
o
PAY TO THE $ '""33,180.00
ORDER OF Cityu of Ames
Thirty Three Thousand One Hundred Eighty and 00/100 Dollars DOLLARS
VOID AFTER 90 DAYS
Cityu,Of Ames FRIEDRICH REALTYAOWA REALTY-TRUST ACCOUNT LL
515 Clark Avenue
Ames,IA 50010
MEMO ""•�w�,.+�''
000067-A Eastgate Lots 10,11,1722,23
u■0 2 500011' 1:0 7 3 90 2 2 7 41 12 11,08 11 m
od
FRIEDRICH/IOWA REALTY 25000
Paid To: Cityu of Ames
CHK025000
515 Clark Avenue
Ames, IA 50010 Date:March 01,2019
Trans.: 000067-A Eastgate Lots 10,11,17,22,23
Notes: Eastgate Subdivision Improvements
Amount: $33,180.00
Seller: Ames National Corporation
Buyer: Dodge Holdings, LLC