Public Hearing and Approval of Plaza Drive Urban Revitalization Plan_HearingCity of Dubuque
City Council Meeting
Public Hearings # 02.
Copyrighted
November 21, 2022
ITEM TITLE: Public Hearing and Approval of Plaza Drive Urban Revitalization Plan
SUMMARY: Proof of publication on notice of public hearing to consider City Council
approve the Plaza Drive Urban Revitalization Plan, and City Manager
recommending approval.
ORDINANCE Amending City of Dubuque Code of Ordinances Title 3,
Revenue and Taxation, Chapter 2 Revitalization Areas, by adopting a new
Section 9 Plaza Drive, establishing the Plaza Drive Urban Revitalization
Area, and establishing requirements for qualifying property owners
SUGGESTED Suggested Disposition: Receive and File; Motion B; Motion
DISPOSITION:
ATTACHMENTS:
Description
Public Hearing for the Creation of Plaza Drive Urban
Revitalization District-MVM Memo
Staff Memo
Ordinance Designating Area
Urban Revitalization Plan
Type
City Manager Memo
Staff Memo
Ordinance
Supporting Documentation
Plaza Drive Urban Revitalization Area Map Supporting Documentation
Long Range Planning Commission Recommendation Supporting Documentation
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Public Hearing & Approval of Plaza Drive Urban Revitalization Plan
DATE: November 17, 2022
Housing & Community Development Director Alexis Steger is recommending City
Council approve the Plaza Drive Urban Revitalization Plan.
The proposed Urban Revitalization Plan will provide up to 10 years of tax -abatement
on new construction of multi -family housing units within the designated area. The
development plan for the lot in the proposed district provides for the construction of
390 units of multi -residential market rate workforce housing. This will be constructed in
13, 3 story buildings and will include community amenities such as a pool and dog
park.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Director
THE C
DUj!B�&;FE
Masterpiece on the Mississippi
TO:
FROM:
DATE:
RE:
Introduction
Michael C. Van Milligen, City Manager
Dubuque
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�micaCKY
I I.,
2oa7 • 2012 • 2013
Alexis M. Steger, Housing and Community Development Director
November 16, 2022
Public Hearing & Approval of Plaza Drive Urban Revitalization Plan
This memorandum presents information necessary for the November 21, 2022, public
hearing regarding the proposed Plaza Drive Urban Revitalization Plan and district
designation.
Background
In October 2022, the City Council approved housing incentives, such as the
designation of Urban Revitalization Districts, to increase the number of housing units in
the city. The city is projected to have a housing shortage of over 1,100 units unless the
rate of new housing developments significantly increases. The incentives approved by
the City Council aim to increase the number of available housing units to decrease this
shortage.
The Petition for Plaza Drive Urban Revitalization Plan was provided to City Council on
October 17, 2022. At that meeting, the City Council set a public hearing for November
21, 2022. The proposed Urban Revitalization Plan will provide up to 10 years of tax -
abatement on new construction of multi -family housing units within the designated
area. The abatement percentage decreases over the 10-years according to the
following schedule:
Year "I
bU%
70%
60%
Year 2
Year 3
Year 4
50%
Year 5
40%
Year 6
40%
Year 7
30%
Year 8
30%
Year 9
20%
Year 10
20%
The development plan for the lot in the proposed district provides for the construction
of 390 units of multi -residential market rate workforce housing. This will be constructed
in 13, 3 story buildings and will include community amenities such as a pool and dog
park.
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.
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 set a public hearing
for November 21, 2022, that provided a comment period on the proposed plan. The
property owners were notified of this hearing as required.
Under Section 15-2-3 of the City Code, one of the roles of the Long -Range Planning
Advisory Commission (LRPAC) is to review each new urban revitalization plan and
make a recommendation as to the plan's consistency with the City's Comprehensive
Plan. The Commission's review is a City Code requirement; it is not required by State
law. The LRPAC determined that the proposed Plan was consistent with the City's
Comprehensive Plan and recommended that the Plaza Drive Urban Revitalization Area
Plan be adopted, and the Urban Revitalization Area be created at their November 2022
meeting.
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 Goas & Priorities. The Plaza Drive Urban Revitalization
Plan 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".
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 a
housing development agreement related to an urban revitalization plan.
Listed in the attached Urban Revitalization Plan Section 5.1(h) describes the
acceptance requirements:
h) All rental units created must accept the U.S. Department of
Housing and Urban Development housing assistance in the
form of Housing Choice Vouchers that are administered
through the City of Dubuque Public Housing Authority to be
eligible for the tax abatement, for all ten years of the
abatement period. Denying a prospective tenant based on
their source of income will terminate eligibility for tax
abatement under this plan.
Estimated Property Tax Calculations
The current property value, based upon 2022 Beacon data, is $22,722, but this
encompasses the larger parent parcel of Lot 1 Asbury Plaza No. 21. A new valuation
will be determined after all processes are completed with the city assessor office for the
plat recorded on October 4, 2022 for this development. A tax abatement on any
increased value will be in effect for 10 years if all requirements of the development are
met. After the abatement period expires the property will be taxed based on the
assessed value for taxation as determined by the assessor.
Recommendation
Staff recommends the city support these efforts to create new housing units. The Plaza
Drive Urban Revitalization Plan provides housing that is in proximity to key community
services and living wage job opportunities.
I respectfully request the City Council hold a public hearing and approve the Plaza Drive
Urban Revitalization Plan.
3
Cc: Crenna Brumwell, City Attorney
Wally Wernimont, City Planner
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. 13'" St., Dubuque, IA 52001, (563) 589-4100
ORDINANCE NO. 39-22
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 3, REVENUE AND
TAXATION, CHAPTER 2 REVITALIZATION AREAS, BY ADOPTING A NEW SECTION
9 PLAZA DRIVE, ESTABLISHING THE PLAZA DRIVE URBAN REVITALIZATION
AREA, AND ESTABLISHING REQUIREMENTS FOR QUALIFYING PROPERTY
OWNERS
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. City of Dubuque Code of Ordinances Title 3, Chapter 2 is hereby
amended by adding the following:
3-2-8: Plaza Drive
The area hereinafter described is hereby designated as the Plaza Drive Urban
Revitalization Area in accordance with the code of Iowa:
Lot 1 of Asbury Plaza No. 21 in the County of Dubuque, Iowa, City of Dubuque,
Iowa, according to the recorded plat thereof.
Section 2. The Plaza Drive Urban Revitalization Plan as attached to this
ordinance is hereby adopted and approved and the properties within said described
area shall be subject to the provisions of said plan.
Section 3. That the Plaza Drive Urban Revitalization Plan shall hereafter be on
file in the city clerk's office, City Hall, Dubuque, Iowa.
Section 4. That the City Clerk is hereby authorized and directed to publish this
Ordinance on or after November 21 st, 2022, provided that the City Clerk prior to that
date has received no valid petition requesting a second public hearing, and in the event
such petition has been received, then this Ordinance shall be null and void.
Attest:
Brad
Adrienne N. Breitfelder, City Clerk
Passed, approved and adopted this 21sl day of November 2022.
M. Cavanagh, Mayor
Plaza Drive Urban Revitalization Plan
1.0 Introduction
The following plan describes certain provisions of the Iowa Urban Revitalization
Act for the Plaza Drive 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 Plaza Drive 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 an undeveloped parcel situated on Plaza
Drive.
Plaza Drive Urban Revitalization Plan
November 2022
Page 2 of 6
2.2 Zoning
Lot 1 of Asbury Plaza No. 16 in the City of Dubuque, Iowa, is zoned PR
Planned Residential PUD and allows for multi -family structures.
2.3 Existing and Proposed Land Use
The existing land use of the property is agricultural farmland that has been
partially improved with streets.
The proposed land use is multi -residential for multi -family structures.
2.4 Assessed Valuation and Owners of Records
Parcel # Legal Description Zoning
Planned
1017200012* Lot 1 of Asbury Plaza No. 16 PUD Residential
2022 Valuation and Owner of Record
*This parcel refers to the larger parent parcel of the recently approved platted
Lot 1 of Asbury Plaza No. 21. This plat was recorded on October 4, 2022.
The area for creation of the Urban Revitalization District will refer to Lot 1 of
Asbury Plaza No. 21 as shown on Exhibit A.
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
Plaza Drive Urban Revitalization Plan
November 2022
Page 3 of 6
This revitalization area is for new construction on undeveloped or
underdeveloped parcels, of multi -family housing units. Only parcels properly
zoned and providing new housing units are eligible.
Parcels in the Plaza Drive Urban Revitalization Area that are not in need of
economic development for the purposes of new construction multi -family
housing as provided for in this plan are excluded from eligibility for tax
incentives provided for in this plan.
There is not housing in the immediate surrounding areas.
The Revitalization Area is adjacent to several retail establishments. Within one
mile of the Revitalization Area there is a grocery store, pharmacy, 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
several commercial employers within three miles.
4.1 Historic Significance
The Plaza Drive Urban Revitalization Area is farmland that has been partially
improved with streets. The property has historically been used as agricultural
farmland. There have been no buildings constructed on the qualifying parcels
to date.
5.0 Revitalization Program
5.1 Tax Exemption
a) New construction multi -family residential property assessed as residential
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, exemption of the actual value added by the improvements
according to the following schedule
Year of
Exemption
Year 1
Percentage of Value
A..-. Exempted
80%
Year 2
70%
Year 3
60%
Year 4
50%
Year 5
40%
Year 6
40%
Year 7
30%
Year 8
30%
Year 9
20%
Year10
20%
Plaza Drive Urban Revitalization Plan
November 2022
Page 4 of 6
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 ten percent in the case of real property assessed
as residential.
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
greater than 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 Plaza Drive 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.
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 will become a Revitalization Area commencing upon the adoption
of the ordinance approving this Revitalization Area by the City Council. The
designation of the Plaza Drive Urban Revitalization 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.
h) All rental units created must accept the U.S. Department of Housing and
Urban Development housing assistance in the form of Housing Choice
Vouchers that are administered through the City of Dubuque Public Housing
Authority to be eligible for the tax abatement, for all ten years of the
abatement period. Denying a prospective tenant based on their source of
income will terminate eligibility for tax abatement under this plan.
5.2 Availability of funding
There are two active programs, which may provide a source of funding for
residential housing units should they remain affordable according to the U.S.
Department of Housing and Urban Development Area Median Income limits for
the City of Dubuque. These include; Community Development Block Grant
Funds (CDBG), Housing Tax Increment Financing.
Plaza Drive Urban Revitalization Plan
November 2022
Page 5 of 6
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 (if applicable):
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.
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 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.
Plaza Drive Urban Revitalization Plan
November 2022
Page 6 of 6
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 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 (Map)
�V,ITALIZATION AREA City Location Map
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THE CITY OF
DLJB TE
Masterpiece on the Mississippi
Dubuque Planning Services Department
kylyyl City Hall - 50 West 13t" Street
mhAnai° Dubuque, IA 52001-4845
i-im i
I I I (563) 589-4210 phone
(563) 589-4221 fax
2007-2012.2013 (563) 690-6678 TDD
2017*2019 plan ning(aD_cityofdubug ue.org
November 17, 2022
The Honorable Mayor and City Council
City of Dubuque
50 W. 13t" Street
Dubuque, IA 52001
SUBJECT: Creation of the Plaza Drive Urban Revitalization Plan
Dear Mayor and City Council Members:
Introduction
The Long Range Planning Advisory Commission has reviewed the proposed plan for the
Plaza Drive Urban Revitalization Area for consistency with the 2017 Imagine Dubuque
Comprehensive Plan in accordance with Section 15-2-13G of the City Code. This review
took place at a regular meeting of the Commission on November 16, 2022.
Discussion
Alexis Steger, Housing & Community Development Director, provided an information packet
on the proposed plan for the Plaza Drive Urban Revitalization District, noting that it will add
to the City's tax base in the future. The parcel situated on Plaza Drive is zoned to
accommodate planned residential. Talon Development has proposed the construction of 390
Market Rate Workforce Housing Units in the form of 13 multi -family buildings located on Plaza
Drive behind the AMC Theatre and Blaine's Farm and Fleet. The development will include
amenities of a free-standing club house and on -site office building, heated pool, tot lot
recreation area, dog walk park facility, BBQ area, outdoor storage and open space for
recreation.
The following is the breakdown in types of units:
Unit Type
Unit Count
A
One Bedroom
78
B
One Bedroom with Patio
78
C
Two Bedroom
0
D
Two Bedroom with Patio
117
E
Three Bedroom
26
F
Three Bedroom with
Patio
52
G
Studio
39
Total
390
Service People Integrity Responsibility Innovation Teamwork
The City Council recently approved incentives to encourage the development of housing in the
community. Currently, Dubuque's housing needs are short by 1,100 to 1,200 residential units.
Fox Hills Apartments community will provide over the next 2-years, 390 apartment units to
greatly reduce the City's housing short fall.
Creation of Urban Revitalization Districts was one form of incentive that was approved by the
City Council. If approved, Talon Development will have their property taxes abated by the
following schedule:
of
PercentageYear
of Value
Added Exempted
Exemption
Year 1
80%
Year 2
70%
Year 3
60%
Year 4
50%
Year 5
40%
Year 6
40%
Year 7
30%
Year 8
30%
Year 9
20%
Year 10
20%
The role of the Commission is to review the urban revitalization plan for consistency with the
City's Comprehensive Plan, in accordance with Section 15-2-13G of the City Code.
Recommendations
By a vote of 5-0, the Commission recommends approval of the Urban Revitalization Plan for
the creation of the Plaza Drive Urban Revitalization District, as it is consistent with the 2017
Imagine Dubuque Comprehensive Plan.
Respectfully submitted,
eltV'incent, Chairperson
Long Range Planning Advisory Commission
cc: Alexis Steger, Housing & Community Development Director
Service People Integrity Responsibility Innovation Teamwork
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
..i1 ulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
11/25/2022
and for which the charge is 23.00
Su scribed to b ore me, a Notary Pubh'in and for
Dubuque County, Iowa,
this 29th day of November, 2022
Notary P
in and for Dubuque'County, Iowa.
A JANET K. PAPE
= Commaisslort Number 199859
My Comm. Exp. DEC t i, 2022
Ad text :
OFFICIAL PUBLICATION
ORDINANCE NO. 39-22
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE, 3, REVENUE
AND TAXATION, CHAPTER 2 REVITALIZATION AREAS, BY ADOPTING A
NEW SECTION 9 PLAZA DRIVE, ESTABLISHING THE PLAZA DRIVE URBAN
REVITALIZATION AREA, AND ESTABLISHING REQUIREMENTS FOR
QUALIFYING PROPERTY QWNERS
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. City of Dubuque Code of Ordinances Title 3,
Chapter 2 is hereby amended by adding the following:
3-2-8: Plaza Drive
The area hereinafter described is hereby designated as the
Plaza Drive Urban Revitalization Area in accordance with the
code of Iowa:
Lot 1 of Asbury Plaza No. 21 in the County of Dubuque, Iowa,
City of Dubuque, Iowa, according to the recorded plat thereof.
Section 2. The Plaza Drive Urban Revitalization Plan as
attached to this ordinance is hereby adopted and approved and
the properties within said described area shall be subject to
the provisions of said plan.
Section 3. That the Plaza Drive Urban Revitalization Plan
shall hereafter be on file in the city clerks office, City
Hall, Dubuque, Iowa.
Section 4. That the City Clerk is hereby authorized and
directed to publish this Ordinance on or after November 21st,
2022, provided that the City Clerk prior to that date has
received no valid petition requesting a second public hearing,
and in the event such petition has been received, then this
Ordinance shall be null and void.
Passed, approved and adopted this 21st day of November 2022.
/s/Brad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, City Clerk
Published officially in the Telegraph Herald newspaper on
the 25th day of November, 2022.
/s/Adrienne N. Breitfelder, City Clerk
It 11/25