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Amendment to the Radford Road Amended Urban Revitalization AreaCopyrighted May 16, 2022 City of Dubuque Action Items # 06. City Council Meeting ITEM TITLE: Amendment to the Radford Road Amended Urban Revitalization Area Plan SUMMARY: City Manager recommending adoption of a resolution amending the Radford Road Urban Revitalization Area Plan. RESOLUTION Approving the adoption of an Amended Urban Revitalization Plan for the Radford Road Urban Revitalization Area SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Amendment to the Radford Road Urban Revitalization City Manager Memo Area Plan-MVM Memo Staff Memo Adopt Amended Plan Resolution Urban Revit Plan Urban Revit Area Boundary Map Concentrated Areas of Poverty Map Staff Memo Resolutions Supporting Documentation Supporting Documentation Supporting Documentation THE CITY DUOF B TEE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approve an Amendment to the Radford Road Amended Urban Revitalization Area Plan DATE: May 10, 2022 Dubuque All -America City IN 2007.2012.2013 2017*2019 Housing & Community Development Director Alexis Steger is recommending City Council adopt the resolution amending the Radford Road Urban Revitalization Area Plan. Landover, has submitted an application for City Support through expansion of the Radford Road Urban Revitalization District. The proposal is for a 50-unit affordable housing complex. The development will be on the east side of Radford Road, across from Roosevelt Middle School. The Urban Revitalization tax exemption will show local support for the project, which will strengthen Landover Corporation's Low Income Housing Tax Credit application to the Iowa Finance Authority. Affordable housing projects are given a priority for city support if they are located outside an area of concentrated poverty based on the recommendations of the Voluntary Compliance Agreement and U.S. Department of Housing and Urban Development. The Amended Radford Road Urban Revitalization Area is outside the area of concentrated poverty and therefore meets this objective. I concur with the recommendation and respectfully request Mayor and City Council approval. 1",�ZAltya k�4 Mich el C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing and Community Development Director THE CJE F Dubuque A�AmericaCiDIU6--B 11111. F Masterpiece on the Mississippi ZU07.2012 • 2013 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director DATE: May 9, 2022 RE: Approve an Amendment to the Radford Road Amended Urban Revitalization Area Plan Introduction This memorandum presents information for an amendment to the Radford Road Urban Revitalization Area Plan. Background A Petition for Radford Road Amended Urban Revitalization Area Designation was received by the City on March 31, 2022 to support a new development of low-income housing being proposed by Horizon Development Inc. The developer was not able to make the site work for low income housing at this time and withdrew his petition/application. A second developer, Landover, has submitted an application for City Support through expansion of the Radford Road Urban Revitalization District. The attached proposal is for a 50-unit affordable housing complex. The development will be on the east side of Radford Road, across from Roosevelt Middle School. The Urban Revitalization tax exemption will show local support for the project, which will strengthen Landover Corporation's Low Income Housing Tax Credit application to the Iowa Finance Authority. Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes cities to designate areas as urban revitalization areas. Improvements to qualified real estate within these designated areas may receive a total or partial exemption from property taxes for a specified number of years. The exemptions are intended to stimulate private investment by reducing tax increases that usually accompany property improvements. This additional private investment provides a long- term increase or stabilization in the area's tax base, enhances the visibility of revitalization areas and/or supports important city objectives such as historic preservation, economic development and affordable housing development. In order to implement the provisions of Chapter 404, the City must determine the area is eligible for exemption, prepare a revitalization plan for each designated area, and hold at least one public hearing after proper notice. The law mandates specific criteria and procedures must be followed. Discussion Chapter 404 provides for a public comment period prior to amending an urban revitalization plan. Based upon these requirements, the Council held a public hearing on April 18, 2022 that provided a comment period on the proposed plan. No comments were received. Consistency with City Council Goals & Priorities The City of Dubuque reviews applications for city support to ensure the request is consistent with the City Council Goals & Priorities. The Amended Radford Road Urban Revitalization Area Designation furthers City Council goals of having "Livable Neighborhoods and Housing: Great Place to Live" and "Partnership for a Better Dubuque: Building our Community that is Viable, Livable, and Equitable". This project also furthers the "Management in Progress" efforts to support Low Income Housing Tax Credits Program/Projects. Consistency with the Consolidation Plan The U.S. Department of Housing and Urban Development (HUD) requires communities who receive Community Development Block Grant (CDBG) funds to complete a five- year Consolidated Plan that identifies general areas of need in the community and how to address them, particularly in the areas of housing, economic opportunity, and community development. The City of Dubuque reviews applications for city support to ensure the request is consistent with the needs identified in the current Consolidated Plan. The Amended Radford Road Urban Revitalization Area meets the objectives identified in the Consolidated Plan Needs Assessment to "Provide opportunities to maintain, improve, obtain and develop affordable housing", and "Provide for implementation of fair housing opportunities". Source of Income Committee In December 2014, the City Council approved formation of a Source of Income Committee to conduct a two-year study examining the HCV program and its relationship to fair housing, with a goal of identifying ways to enhance fair housing in Dubuque (see Attachment C). In February 2017, the Source of Income Committee ultimately recommended a collective impact approach to adopt and implement a mix of educational, outreach, and financial programs to increase housing provider participation in the HCV program. These recommendations are found in the Comprehensive Plan: Adopt and implement a mix of educational / outreach programs to increase participation in HCV program. Adopt and implement a mix of financial incentives / policies for creation of HCV units throughout community. Based on the Source of Income Committee recommendations, the City now requires housing developers to accept HCV participants in conjunction with approval of an affordable housing development agreement related to an urban revitalization plan. Landover Corporation entered into an agreement with the City of Dubuque on May 2na 2022 with the requirement to accept housing choice vouchers in the agreement. Location Affordable housing projects are given a priority for city support if they are located outside an area of concentrated poverty based on the recommendations of the Voluntary Compliance Agreement and U.S. Department of Housing and Urban Development. The Amended Radford Road Urban Revitalization Area is outside the area of concentrated poverty and therefore meets this objective. Opportunity Areas Iowa's LIHTC program calculated the "high" and "very high" opportunity areas as part of the State of Iowa's Analysis of Impediments to Fair Housing Choice. IFA and the Iowa Economic Development Authority are required to conduct such an analysis because both agencies administer HUD funding. One of the components of the Analysis is to identify Opportunity Areas. HUD adapted the Communities of Opportunity model to calculate opportunity index scores for each census block group on six separate dimensions: Prosperity, Labor Market Engagement, Job Access, Mobility, School Proficiency, and Community Health. Each dimension analyzed for Iowa's Analysis of Impediments to Fair Housing Choice includes a collection of variables describing conditions for each census tract in the State. The Radford Road Urban Revitalization Area is in a designated "high" opportunity area. Community Input All projects requesting city support are required to hold a community meeting, where at a minimum, residents within a 200-foot radius of the project receive an invitation. The community meeting was held on May 5, 2022. Three residents attended, with no concerns expressed about the development. One individual commented that it was good to see development on the vacant land, because it has been vacant too long. Relocation The Amended Radford Road Urban Revitalization Area would be new construction, therefore no persons, families, business or others would be displaced for this project. 3 Recommendation Staff recommends the City support these efforts to promote quality, affordable housing, with attention to the needs of families. The Amended Radford Road Urban Revitalization Plan provides affordable family housing outside the area of concentrated poverty, and is in a location with proximity to key community services and living wage job opportunities. Action Requested I respectfully request the City Council approve the Radford Road Urban Revitalization Area Plan as amended. Cc: Wally Wernimont, City Planner Crenna Brumwell, City Attorney 12 Prepared by Alexis Steger Housing & Community Devel. 350 W. 61" St Suite 312 (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 200-22 APPROVING THE ADOPTION OF AN AMENDED URBAN REVITALIZATION PLAN FOR THE RADFORD ROAD URBAN REVITALIZATION AREA. Whereas, on December 8, 2018 the City approved an Urban Revitalization Plan (the Plan) for the Radford Road Urban Revitalization Area; and Whereas, on February 7, 2020 the City Council set a public hearing for the review and approval of an amendment to the Plan; and Whereas, on April 4, 2022 the City Council set a public hearing to be held on April 18, 2022 for the review and approval of an amendment to the Plan; and Whereas, the City held the required public hearing on April 18, 2022, and proposes adoption of the Plan as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: The Amended Urban Revitalization Plan for the area known as the Radford Road Urban Revitalization Area is hereby approved. Passed, approved and adopted this 16th day of May, 2022. - 4'-a " David T. Resnick, Mayor Pro Tern Attest: 76 01 Trish L. Gleason, Assistant City Clerk Amended Radford Road Urban Revitalization Plan Established, November 2018; Amended February 2020 and April 2022 1.0 Introduction The following plan describes certain provisions of the Iowa Urban Revitalization Act and proposes the amendment of the Radford Road Urban Revitalization Area. The State of Iowa, under Iowa Code Chapter 404, allows cities to designate areas as urban revitalization districts. Under this Act, improvements to qualified areas may receive a total or partial exemption from property taxes for a specified number of years. The exemptions are intended to stimulate private investment by the reduction of tax increases related to property improvements. Once an area is deemed to meet the requirements established in Chapter 404, a plan must be established which identifies the district boundaries, property owners, existing conditions, proposed plans and the basic abatement provisions for the revitalization area. Iowa Code Chapter 404.1 lists five reasons for which a city or county may establish urban revitalization plans. These include: 1. The existence of numerous buildings that are dilapidated or deteriorated, detrimental to the public health, safety, or welfare of the area 2. An area challenged by the presence of a substantial number of deteriorated or deteriorating structures along with additional other defective or unsafe conditions impairing the provision of housing 3. An area in which there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use. 4. An area which is appropriate as an economic development area as defined in section 403.17. 5. An area designated as appropriate for public improvements related to housing and residential development, or construction of housing and residential development, including single or multifamily housing. The Amended Radford Road Urban Revitalization Plan will be based upon the need for the encouragement of housing and residential development. 2.0 The Area 2.1 Location Exhibit A identifies the location of the Revitalization District in the City of Dubuque. The area encompasses undeveloped or underdeveloped parcels situated on Wolff Road, Pennsylvania Avenue and Radford Road. Amcndcd Radford Road Urban Rcvitalization Plan February 2020 Pagc 2 of 7 2.2 Zoning 1895 Radford Road or Lot 1-1 Wolff Place No. 2 was re -zoned per ordinance 33-18 as OC Office Commercial District on November 17, 2018 to accommodate a multi -residential structure. 1865 Radford Road or Lot 2-1 Wolff Place No. 2 was rezoned OC Office Commercial District on February 17, 2020 to accommodate a multi -residential structure. Other parcels in the area are zoned as Light Commercial, General Commercial, Neighborhood Shopping Center District and Planned Commercial. For development of low-income housing, parcels will need to be re -zoned to OC Office Commercial District or OR Office Residential District to be considered for tax abatement in this Urban Revitalization District. 2.3 Existing and Proposed Land Use The subject properties have been used as farmland with no structures on the site, undeveloped greenspace, temporary parking for adjoining properties, and commercial space with structures. The proposed land use is OC Office Commercial District for low -moderate income multi -residential structures. 2.4 Assessed Valuations and Owners of Records Parcel # Legal Description Zoning LOT 1-2-1-1-A BLK 2 NORTHRANGE INDUSTRIAL 1020378019 PARK C-3 General Commercial Commercial Service with CSc/C- Conditions/General 1020378015 LOT 1 WOLFF PLACE NO 3 3 Commercial Commercial Service with CSc/C- Conditions/General 1020378010 LOT 2-2 NORTHRANGE INDUSTRIAL PARK #2 3 Commercial LOT 2-2-1-1 BLK 2 NORTHRANGE INDUSTRIAL 1020378011 PARK C-3 General Commercial 1020406088 LOT 2 PIZZA RANCH PLACE PC Planned Commercial Light Industrial with 1020376004 LOT 1-1 NORTHRANGE INDUSTRIAL PARK #3 Llc Conditions LOT 2-1-PT-1-1-1 BLK 2 NORTHRANGE 1020377001 INDUSTRIAL PARK LI Light Industrial 1020377011 LOT 2-1 WOLFF PLACE NO. 2 EXC LOT A-2-1 OC Office Commercial 1020452033 LOT 2-1-A NORTHRANGE SUB #1 C-3 General Commercial Commercial Service with CSc/C- Conditions/General 1020378016 LOT 2 WOLFF PLACE NO 3 3 Commercial Amcndcd Radford Road Urban Rcvitalization Plan February 2020 Pagc 3 of 7 Neighborhood Shopping 1020406037 LOT 1 BLK 11 SUNNYSLOPE ESTATES C-2 Center 1020451001 LOT 2 BLK 1 NORTHRANGE INDUSTRIAL PARK C-3 General Commercial 1020376005 LOT 2-1 NORTHRANGE INDUSTRIAL PARK #3 C-3 General Commercial 1020377010 LOT 1-1 WOLFF PLACE NO 2 OC Office Commercial BAL LOT 1-2-1-1 BLK 2 NORTHRANGE INDUSTRIAL 1020378018 PARK EXC LOT 1-2-1-1-A C-3 General Commercial BAL LOT 2-1-1-1 BLK 1 NORTHRANGE INDUSTRIAL 1020452031 PARK EXC LOT 2-1-1-1-A C-3 General Commercial 1020452034 BAL LOT 2-1 NORTHRANGE SUB #1 EXC LOT 2-1-A C-3 General Commercial UNIT #A RADFORD COURT SHOPPING CENTER CONDOMINIUMS LOCATED ON LOT 4 BLK 11 1020406085 SUNNYSLOPE ESTATES PC Planned Commercial UNIT #B RADFORD COURT SHOPPING CENTER CONDOMINIUMS LOCATED ON LOT 4 BLK 11 1020406086 SUNNYSLOPE ESTATES PC Planned Commercial 2021 Valuation for Existing Parcels, 2022 Valuations for Amended/Added Parcels 1020378019 64,280 0 0 64280 1020378015 173,250 103,080 0 276330 1020378010 138,150 85,280 0 223430 1020378011 140,380 160,800 0 301180 1020406088 404,800 0 0 404800 1020376004 262,290 0 0 262290 1020377001 351,210 1,060 0 352270 1020377011 202,500 0 0 202500 1020452033 49,650 0 0 49650 1020378016 156,820 106,340 0 263160 1020406037 87,250 273,500 0 360750 1020451001 150,910 559,860 0 710770 1020376005 131,730 510,300 0 636430 1020377010 199,500 0 0 199500 1020378018 106,280 32,080 0 138360 1020452031 159,300 147,310 0 306610 1020452034 224,250 0 0 224250 1020406085 80,760 279,090 0 359850 1020406086 80,760 394,920 0 475680 Amended Radford Road Urban Revitalization Plan February 2020 Page 4 of 7 2.5 City Services This area is served by city services. 3.0 Relocation No relocation should occur due to the rehabilitation of the parcels identified for expansion of this district. Should relocation occur because of rehabilitation in the proposed district, the person(s) causing a qualified tenant to be displaced shall pay all the relocation costs of the tenant as a condition for receiving a tax -exemption under Iowa Code Section 404.3. "Qualified tenant" shall mean the legal occupant of a residential dwelling unit which is located within this designated revitalization area and who has occupied the same dwelling unit continuously for one year prior to the city's adoption of this plan pursuant to Iowa Code Section 404.2. 4.0 Qualification of Areas This revitalization area is for new construction on undeveloped or underdeveloped parcels, of low-income housing units. Only parcels properly zoned and providing low-income housing units are eligible. Parcels in the Amended Radford Road Urban Revitalization Area that are not in need of economic development for the purposes of new construction, low- income housing as provided for in this plan are excluded from eligibility for tax incentives provided for in this plan. The housing in the area consists of single-family homes. Exhibit B shows the Revitalization Area in comparison to areas of concentrated poverty. This Revitalization Area supports the initiative to create affordable housing units outside the area of concentrated poverty. The Revitalization Area is adjacent to Eleanor Roosevelt Middle School and Carver Elementary School. Within one mile of the Revitalization Area there is a childcare center, county library, grocery store, pharmacy, retail establishments, local transit, and restaurants. Additionally, there are several employment opportunities within one mile of the Revitalization Area, which include the establishments listed above as well as many industrial and commercial employers such as Kendall Hunt Publishing, Amended Radford Road Urban Revitalization Plan February 2020 Page 5 of 7 Geisler Brothers, Rite Hite, Weber Paper, A.Y. McDonald, and the Dubuque Regional Humane Society, among numerous others. 4.1 Historic Significance The Amended Radford Road Urban Revitalization Area has been used as farmland. There have been no buildings constructed on the qualifying parcels to date. 5.0 Revitalization Program 5.1 Tax Exemption a) New construction low-income residential property, assessed as residential or assessed as commercial property, if the commercial property consists of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes, will be eligible for property tax exemption. The property tax exemption will be in accordance with the Code of Iowa, Chapter 404.3(4), providing for a ten-year, 100% exemption of the actual value added by the improvements. b) "Qualified real estate" means real property, other than land, which is located in a designated revitalization area and to which improvements have been added, during the time the area was so designated, which have increased the actual value by at least fifteen percent, or at least ten percent in the case of real property assessed as residential, or which have, in the case of land upon which is located more than one building and not assesses as residential property, increased the actual value of the buildings to which the improvements have been made by at least fifteen percent. c) Property tax exemption shall be available only for `new construction'. "Actual value added" means the actual value added as of the first year for which the exemption was received. d) Any construction or improvements that were assessed before the area was officially designated will not be eligible for exemption. Construction begun prior to one year prior to the area becoming designated will not be eligible for exemption. All exemptions existing at the time of the repeal of the Amended Radford Road Urban Revitalization District shall continue until their expiration. e) New Construction must result in a structure meeting applicable building, plumbing, mechanical, electrical, and other code requirements of the City of Dubuque. Amended Radford Road Urban Revitalization Plan February 2020 Page 6 of 7 f) The actual value of the improvements must result in an increase in assessed value as stated above in (b). Each year that an application is made for tax exemption, the assessed value must have increased in that year by the required percentage. g) The area became a Revitalization Area commencing upon the adoption of the ordinance approving this Revitalization Area by the City Council on January 7, 2018. The designation of the Amended Radford Road Urban Revitalization Plan Area will remain in effect until the desired level of revitalization has been attained. Upon repeal of the ordinance establishing this revitalization area, all existing exemptions would continue until their previously established expiration date. 5.2 Availability of funding There are two active programs, which may provide a source of funding for residential and commercial improvements to the proposed district. These include; Community Development Block Grant Funds (CDBG), Housing Tax Increment Financing. 6.0 Application Procedure This area, upon designation, will follow the procedures for application and granting of the property tax exemption within the City of Dubuque. a) The property owner must apply for an exemption by February 1st of the assessment year for which the exemption is first claimed, but not later than the year in which all the improvements included in the project are first assessed for taxation, or the following two assessment years, in which case the exemption is allowed for the total number of years in the exemption schedule. Upon the request of the owner, the governing body of the City may provide by resolution that the owner may file an application no later than February 1 of the tenth assessment year. b) The application must contain, at a minimum, the following: a. The nature of the improvements, b. The cost of the improvements, c. The actual or estimated date of completion, and d. The tenants occupying the property as of the date of the City's resolution adopting this plan. c) The City reviews all applications to determine whether the improvement project conforms to the revitalization plan, is within a designated area, and if the improvements were made during the appropriate time period. If the project meets all three criteria, the City shall forward the application to the assessor by March 1st, with a statement as to which exemption applies. Amended Radford Road Urban Revitalization Plan February 2020 Page 7 of 7 Applications for exemptions for succeeding years on approved projects shall not be required. d) The local assessor shall review each application by making a physical review of the property, to determine if the improvements made increased the actual value of the qualified real estate by at least fifteen percent or ten percent in the case of real property assessed as residential property. If the assessor determines that the actual value of that real estate has increased by at least the requisite percent, the assessor shall certify the property valuation, determined pursuant to the tax exemption schedule, to the County Auditor at the time of transmitting the assessment rolls. The assessor shall notify the applicant of the determination, and the assessor's decision may be appealed to the local board of review at the time specified in Iowa Code. The property owner may also refile an application in a subsequent year after additional improvements have been made. e) After the tax exemption is granted, the assessor shall continue to grant the tax exemption, with periodic physical review by the assessor, for the ten- year time period specified in the tax exemption schedule. f) An application for exemption received by February 1 in any year after the year in which the improvement was completed and first assessed for taxation, is a late application. Late application may be made in any year up to the tenth year following completion of the improvement. The exemption period will be the remainder of the ten-year period, which began upon completion of the improvement, except the total number of years in the exemption schedule will be allowed if a claim for exemption is filed within two years of the February 1 filing deadline. 7.0 Conclusion The proposed urban revitalization district will encourage new construction to provide needed housing units. After the ten-year abatement period lapses, the full assessed value of the property will go on the tax rolls to the benefit of the entire community. EXHIBIT A & B (Maps) IJ 0 0 Legend N 0 Amended Radford Road Urban Revitalization Boundary ° Subject Parcels oy �wr,r 11020406085 ` -- ooG 1020406086 cz RAIDFORD O FA fCDCD Cli p t _ o.,. 1020377011 1020377010 0 a 1 0.451001 � p .. e. CO O o- ~ p O _ LFF _ T J M YYY - - i NORTHRANGE v - -• LO CO CO p 1012045',20 .. _ If) CO 0 CO 0 CO CO 4, �, 4 M M CO C) C Oo Oo 1020378018 � o.''1020452034 N - N ... p � 10203 • C) p � - PENNSYLVA NIA .. _..... . ` � � Z •City ,.;;; � ��' of Dubuque, IA Concentrated Areas of Poverty by Census Tract City of Dubuque, IA Proposed Affordable Housing Projects ARM 102.01 101.04 Dubuque City Li its Census Tracts 12.02 all 9 .03 7.02 8.02 8.01 101.01 101.05 Highest povert tracts: 26.7% - 29.5% of population below poverty measure N Source: American C mmunity Survey 2020 5-Year Estimate (2016-2020) 11 IT �I 1 -111 LI 111 11",UL, 111 -111LI, .11 0 1 2 4 Miles