Urban Revitalization Multi-Family Value Increase Requirements Copyrighted
March 4, 2019
City of Dubuque Consent Items # 18.
ITEM TITLE: Urban Revitalization Multi-Family Value Increase
Requirements
SUMMARY: City Manager recommending approval of a resolution that
approves a required 10% valuation increase for multi-family
properties to be eligible for tax abatement under lowa
Code Chapter 404 Urban Revitalization.
RESOLUTION Setting the required percent increase in
actual value for multi-residential assessed property to
qualify for urban revitalization
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Urban Revitalization Multi-Family Property Value City Manager Memo
Increase Requirements-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Urban Revitalization Multi-Family Property Value Increase Requirements
DATE: February 28, 2019
Housing and Community Development Department Director Alexis Steger recommends
City Council approval of a resolution that approves a required 10°k valuation increase
for multi-family properties to be eligible for tax abatement under lowa Code Chapter 404
Urban Revitalization.
lowa Code Chapter 404 establishes the required increase in property value for
commercial and residential properties, 15°k and 10°k respectively. Multi-Family
properties are a new class of property established by legislation in 2016. Prior to that
legislative change, these properties were taxed as commercial properties. The final
taxable value for these properties will be at the residential tax rate by Fiscal Year 2024.
Per lowa Code Chapter 404, the City of Dubuque can establish the percentage of
required value increase on a class of property to be eligible for the tax abatement in an
urban revitalization area, as long as it does not exceed 15°k.
Based on the final taxable value of the multi-family class of properties mirroring the
residential class of properties, it seems prudent to establish the property value increase
required under lowa Code Chapter 24 for multi-family properties at the residential rate
of 10°k.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Department Director
THE CTTY OF Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis Steger, Housing and Community Development Department Director
SUBJECT: Urban Revitalization Multi-Family Property Value Increase Requirements
DATE: February 27�h, 2019
INTRODUCTION
This memorandum presents for City Council consideration the attached resolution
related to lowa Code Chapter 404 Urban Revitalization, and the establishment of the
required increase in property value for multi-family properties.
BACKGROUND
The purpose of the Urban Revitalization legislation is to attract development to specific
areas, which might otherwise continue to deteriorate, thereby stabilizing and eventually
increasing the tax base within those areas. The abatements are intended to stimulate
private investment by reducing the tax increases that would normally result from making
improvements to residential property.
lowa Code Chapter 404 only establishes the required increase in property value for
commercial and residential properties, 15% and 10% respectively. Multi-Family
properties are a new class of property established by legislation in 2016. Prior to that
legislative change, these properties were taxed as commercial properties. The final
taxable value for these properties will be at the residential tax rate by fiscal year 2024.
Per lowa Code Chapter 404, the City of Dubuque can establish the percentage of
required value increase on a class of property to be eligible for the tax abatement in an
urban revitalization area, as long as it does not exceed 15%.
DISCUSSION
Based on the final taxable value of the multi-family class of properties mirroring the
residential class of properties, it seems prudent to establish the property value increase
required under lowa Code Chapter 24 for multi-family properties at the residential rate
of 10%. The City Council must adopt a resolution setting this rate due to the new class
of property being established by lowa Legislation, for any application under this property
class to be eligible for tax abatement under lowa Code Chapter 404.
RECOMMENDATION
I respectfully request the City Council approve the attached resolution approving a
required 10°k valuation increase for multi-family properties to be eligible for tax
abatement under lowa Code Chapter 404 Urban Revitalization.
2
RESOLUTION NO. 78-19
SETTING THE REQUIRED PERCENT INCREASE IN ACTUAL VALUE FOR
MULTIRESIDENTIAL ASSESSED PROPERTY TO QUALIFY FOR URBAN REVITALIZATION
Whereas, Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to
abate property taxes for improvements made to properties in designated revitalization areas for
properties assessed as residential, multiresidential, agricultural, commercial, or industrial
property within the designated area or a combination thereof; and
Whereas, pursuant to the requirements of said Urban Revitalization Act, the following Urban
Revitalization Areas were established: Upper Main, Jackson Park, Washington Neighborhood,
West 11th Street, Upper Main, Cathedral, Old Main, and Kunkel & Associates, Lange Estates;
and
Whereas, multiresidential is a newer tax classification; and
Whereas, Iowa Code §404.2 requires the City specify the percent increase in actual value
requirements which shall be used and specify the application of revitalization's applicability to the
different property classifications within Urban Revitalization Areas; and
Whereas, the City has not previously specified the percent increase in actual value required
for eligibility for urban revitalization for multiresidential assessed property; and
Whereas, the City desires to set the percent increase in actual value required to qualify for
urban revitalization for multiresidential assessed property; and
Whereas, staff recommends a ten percent (10%) increase in the actual value will be required
for multiresidential assessed property to qualify for urban revitalization.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The percent increase in actual value required for property assessed as
multiresidenital to qualify for urban revitalization is ten percent (10%).
Passed, approved and adopted this 4th day of March, 2019.
Attest:
Kevir�'S: Firnstahl, ity Clerk
Roy D. Buol, Mayor