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Dubuque Brewing and Malting Urban Renewal DistrictORDINANCE NO. 61-08 AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE DUBUQUE BREWING & MALTING URBAN RENEWAL DISTRICT OF THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT, AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH THE DUBUQUE BREWING & MALTING URBAN RENEWAL DISTRICT REDEVELOPMENT PROJECT. WHEREAS, the City Council of the City of Dubuque, Iowa, after public notice and hearing as prescribed by law and pursuant to Resolution No. 130-88 adopted on September 2, 2008, adopted an Urban Renewal Plan for an urban renewal area known as the Dubuque Brewing & Malting Urban Renewal District (the "Project Area"), which Project Area includes .the lots and parcels described in said Urban Renewal Plan; and WHEREAS, expenditures and indebtedness are anticipated to be incurred in the future to finance urban renewal project activities carried out in furtherance of the foregoing Urban Renewal Plan; and WHEREAS, the City Council desires to provide for the division of revenue from taxation in the Project Area in accordance with the provisions of Section 403.19 of the Code of Iowa, as amended; and -1- WHEREAS, the following enactment is necessary to accomplish the objectives described in the premises. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE,. IOWA, THAT: Section 1: For purposes of this Ordinance, the following terms shall have the following meanings: (a) Project Area shall mean that portion of the City of Dubuque, Iowa described in the Urban Renewal Plan for the Dubuque Brewing & Malting Urban Renewal District approved by Resolution No. 301-08 on September 2, 2008, which Project Area includes the lots and parcels located within the area now legally described as follows: Lot 1-1-4, Lot 2-1-4, Lot 2-4, Balance of Lot 4, Lot 5, Lot 2-6, Lot 2-7 and Lot 1-1-3-8 all of Mineral Lot 322 in the City of Dubuque, Dubuque County, Iowa; and Lots A, B, C, D, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 all in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1-1, Lot 2-1, Lot 2, Lot 3 and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa; and also including public right-of-way abutting thereto. (b) Urban Renewal Plan shall mean the Urban Renewal Plan for the Project Area approved in Resolution No. 301-08 on September 2, 2008. Section 2: The taxes levied on the taxable property in the Project Area, legally described in Section 1 hereof; by and for the benefit of the State of Iowa, City of Dubuque, County of Dubuque, Dubuque Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided. Section 3: That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts taxing property in the Project Area upon the total sum of the assessed value of the taxable property in the Project Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City of Dubuque certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the division of property tax revenue described herein (which certification is directed to be made during the 2007 _2_ calendar year), shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. The taxes so determined shall be referred herein as the "base period taxes" for such Project Area. Section 4: That portion of the taxes each year in excess of the base period taxes for the Project Area, determined as provided in Section 2 of this Ordinance, shall be allocated to and when collected be paid into a special tax increment fund hereby established by the City of Dubuque to pay the principal of and interest on loans, monies advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under authority of Section 403.9 or Section 403.12 of the Code of Iowa, incurred by the City of Dubuque, Iowa to finance or refinance, in whole or in part, urban renewal projects undertaken within the Project Area pursuant to 'the Urban Renewal Plan, except that taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2, but only to the extent authorized in Section 403.19(2), and taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the Project Area without any limitation as hereinabove provided. Section 5: Unless or until the total assessed valuation of the taxable property in the Project Area exceeds the total assessed value of the taxable property in said area as shown by the assessment roll referred to in Section 3 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Project Area shall be paid into the funds for the respective taxing districts as taxes by or for the taxing districts in the same manner as all other property taxes. Section 6: At such time as the loans, monies advanced, bonds and interest thereon and indebtedness of the City of Dubuque referred to in Section 4 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Project Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property. Section 7. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the division of taxes from property within the Project Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law, it shall not affect other provisions or application of this Ordinance which shall at all times be construed to fully invoke the provisions of Section 403.19 of -3- the Code of Iowa with refernce to the Project Area and the territory contained therein. Sectoin 8. This Ordinance shall be in effect after its final passage, approval and publication as provided by law. Passed, approved and adopted this 6th day of October, 2008. Roy D. Buol, Mayor ATTEST: City Clerk THE CITY OF ~ f,~ Dubuque --~..~ - i Dui ~ ~~.~~~~ t - Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Tax Increment Ordinance for the Dubuque Brewing & Malting Urban Renewal District DATE: September 8, 2008 Economic Development Director Dave Heiar is recommending adoption of an ordinance creating the tax increment financing district for the Dubuque Brewing & Malting Urban Renewal District. On September 2, 2008 the City Council approved an Urban Renewal Plan for the Dubuque Brewing & Malting Urban Renewal District which includes property owned by Dubuque Stamping & Manufacturing and the former H&W building. The tax increment ordinance allows for Tax Increment Financing collection on these properties. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi ael C. Van Mi ligen MCVM/ems Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Dave Heiar, Economic Development Director THE CITY of Dubuque __„' DuB E a~~~~~ Masterpiece on the Mississippi 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Tax Increment Ordinance for the Dubuque Brewing & Malting Urban Renewal District DATE: September 5, 2008 Introduction This memorandum transmits for City Council review and adoption an ordinance creating the tax increment financing district for the Dubuque Brewing & Malting Urban Renewal District. The proposed ordinance was reviewed by the City's bond counsel and is attached to this memo. Background On September 2, 2008 the City Council approved an Urban Renewal Plan for the Dubuque Brewing & Malting Urban Renewal District which includes property owned by Dubuque Stamping & Manufacturing and the former H&W building. The tax increment ordinance allows for TIF collection on these properties. Discussion Adoption of the proposed tax increment ordinance is needed to establish the use of tax increment financing to the district. The ordinance authorizes the City to establish a special fund for the collection of a portion of the property tax revenues generated by new development occurring within the the district. All taxable property located with the tax increment district will continue to pay property taxes based upon the current tax levies and assessment valuations. Tax revenues collected in excess of the base amounts will be used to assist in financing future development projects within the district, including both public and private development. Adoption of the ordinance will create the base valuations for the Original Project Areas. Recommendation I recommend that the City Council approve the tax increment ordinance for the Dubuque Brewing & Malting Urban Renewal District. Tax increment financing is an important tool for economic development and will be used to assist future public and private development efforts in the area. Action Step The action step is for the City Council to approve the tax increment ordinance attached hereto. attachment F:\USERS1Adejong\Urban Renewal\Brewing and Malting UR District\TIF Ordinance\20080915Bvewing & Malting TIF ord memo.doc the Code of Iowa with reference to the Project Area and the territory contained therein. Section 8: This Ordinance shall be in effect after its final passage, approval and publication as provided by law. Passed, approved and adopted this 6th day of October, 2008. ATTEST: Roy D. Buol, Mayor City Clerk Read first time: Read second time: Read third time: PASSED AND APPROVED: PUBLISHED: F:\USERSWdejonglUrban Renewal\Brewing and Malting UR District\TIF Ordinance12008.1 Brewing & Malting TIF Ordinance.doc -4- s ORDINANCE NO. AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE DUBUQUE BREWING & MALTING URBAN RENEWAL DISTRICT OF THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT, AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH THE DUBUQUE BREWING & MALTING URBAN RENEWAL DISTRICT REDEVELOPMENT PROJECT WHEREAS, the City Council of the City of Dubuque, Iowa, after public notice and hearing as prescribed by law and pursuant to Resolution No. 130-88 adopted on September 2, 2008, adopted an Urban Renewal Plan for an urban renewal area known as the Dubuque Brewing & Malting Urban Renewal District (the "Project Area"), which Project Area includes the lots and parcels described in said Urban Renewal Plan; and WHEREAS, expenditures and indebtedness are anticipated to be incurred in the future to finance urban renewal project activities carried out in furtherance of the foregoing Urban Renewal Plan; and WHEREAS, the City Council desires to provide for the division of revenue from taxation in the Project Area in accordance with the provisions of Section 403.19 of the Code of Iowa, as amended; and -1- WHEREAS, the following enactment is necessary to accomplish the objectives described in the premises. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, THAT: Section 1: For purposes of this Ordinance, the following terms shall have the following meanings: (a) Project Area shall mean that portion of the City of Dubuque, Iowa described in the Urban Renewal Plan for the Dubuque Brewing & Malting Urban Renewal District approved by Resolution No. 301-08 on September 2, 2008, which Project Area includes the lots and parcels located within the area now legally described as follows: Lot 1-1-4, Lot 2-1-4, Lot 2-4, Balance of Lot 4, Lot 5, Lot 2-6, Lot 2-7 and Lot 1-1-3-8 all of Mineral Lot 322 in the City of Dubuque, Dubuque County, Iowa; and Lots A, B, C, D, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 all in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1-1, Lot 2-1, Lot 2, Lot 3 and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa; and also including public right-of--way abutting thereto. (b) Urban Renewal Plan shall mean the Urban Renewal Plan for the Project Area approved in Resolution No. 301-08 on September 2, 2008. Section 2: The taxes levied on the taxable property in the Project Area, legally described in Section 1 hereof, by and for the benefit of the State of Iowa, City of Dubuque, County of Dubuque, Dubuque Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided. Section 3: That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts taxing property in the Project Area upon the total sum of the assessed value of the taxable property in the Project Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City of Dubuque certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the division of property tax revenue described herein (which certification is directed to be made during the 2007 -2- calendar year), shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for said taxing district into which all other property taxes are paid. The taxes so determined shall be referred herein as the "base period taxes" for such Project Area. Section 4: That portion of the taxes each year in excess of the base period taxes for the Project Area, determined as provided in Section 2 of this Ordinance, shall be allocated to and when collected be paid into a special tax increment fund hereby established by the City of Dubuque to pay the principal of and interest on loans, monies advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under authority of Section 403.9 or Section 403.12 of the Code of Iowa, incurred by the City of Dubuque, Iowa to finance or refinance, in whole or in part, urban renewal projects undertaken within the Project Area pursuant to the Urban Renewal Plan, except that taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2, but only to the extent authorized in Section 403.19(2), and taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the Project Area without any limitation as hereinabove provided. Section 5: Unless or until the total assessed valuation of the taxable property in the Project Area exceeds the total assessed value of the taxable property in said area as shown by the assessment roll referred to in Section 3 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Project Area shall be paid into the funds for the respective taxing districts as taxes by or for the taxing districts in the same manner as all other property taxes. Section 6: At such time as the loans, monies advanced, bonds and interest thereon and indebtedness of the City of Dubuque referred to in Section 4 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Project Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property. Section 7. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the division of taxes from property within the Project Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law, it shall not affect other provisions or application of this Ordinance which shall at all times be construed to fully invoke the provisions of Section 403.19 of -3-