Loading...
Setting a Public Hearing for the creation of Plaza Drive Urban Revitalization Area_InitiateCopyrighted December 5, 2022 City of Dubuque Items to be set for Public Hearing # City Council Meeting 01. ITEM TITLE: Setting a Public Hearing for the creation of Plaza Drive Urban Revitalization Area SUMMARY: City Manager recommending City Council set a public hearing for December 19, 2022, to consider creating the Plaza Drive Urban Revitalization Area. RESOLUTION Setting a public hearing to create an Urban Revitalization Area, finding an area referred to as Plaza Drive Urban Revitalization Area, hereinafter described, appropriate for public improvements related to housing and residential development and construction of residential development, including single or multifamily housing necessary in the interest of public health, safety, or welfare of the residents of the city and setting a public hearing on creation of the Plaza Drive Urban Revitalization Area SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: December 19, 2022Suggested Disposition: ATTACHMENTS: Description Type Setting a Public Hearing for the Creation of the Plaza City Manager Memo Drive Urban Revitalization Area-MVM Memo Staff Memo Staff Memo Resolution Setting Hearing and Notice of Publication Resolutions Draft Urban Revitalization Plan Supporting Documentation Map of the Area Supporting Documentation THE C DUjIBQTE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Setting a Public Hearing for the creation of Plaza Drive Urban Revitalization Area DATE: November 30, 2022 Dubuque WAWca 914 ii 2007-2012.2013 2017*2019 Housing & Community Development Director Alexis Steger is recommending City Council set a public hearing for December 19, 2022, to consider creating the Plaza Drive Urban Revitalization Area. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE COF Dubuque DtUBE all-bme110 MV Masterpiece on the Mississippi 11111.1 2007 • 2012 • 2013 • 2017 TO: Michael C Van Milligen, City Manager FROM: Alexis Steger, Housing & Community Development Director DATE: November 30, 2022 RE: Setting a Public Hearing for the creation of Plaza Drive Urban Revitalization Area BACKGROUND In accordance with the recent council presentation which outlined a framework for offering incentives to address the critical housing shortage Dubuque is currently experiencing, staff has been working with several developers on potential projects. DISCUSSION The City Council held a public hearing on this matter in November 2022; however, the publication listed the incorrect name for the revitalization area. A new public hearing is being requested to ensure the public had the proper understanding and full opportunity to provide input on this matter. Talon Development has proposed the construction of residential units in the form of 13 multi -family buildings with approximately 30-units in each building on Plaza Drive. Talon Development was recently awarded $1,000,000 in workforce tax credits by the State for the first 90-units in this development. Pursuant the framework presented; an urban revitalization is being proposed for the project. A preliminary step to creating an urban revitalization area under the Iowa Code is a resolution finding that the area meets one or more of the requirements of the code. One of the authorizing criteria is the development of housing and residential development. Attached is a resolution setting a public hearing on the creation of the area for December 19, 2022. RECOMMENDATION I respectfully request Mayor and City Council set a public hearing for December 19, 2022, to consider creating the Plaza Drive Urban Revitalization Area. Prepared by Crenna Brumwell 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 RESOLUTION NO. 373-22 A RESOLUTION SETTING A PUBLIC HEARING TO CREATE AN URBAN REVITALIZATION AREA, FINDING AN AREA REFERRED TO AS PLAZA DRIVE URBAN REVITALIZATION AREA, HEREINAFTER DESCRIBED, APPROPRIATE FOR PUBLIC IMPROVEMENTS RELATED TO HOUSING AND RESIDENTIAL DEVELOPMENT AND CONSTRUCTION OF RESIDENTIAL DEVELOPMENT, INCLUDING SINGLE OR MULTIFAMILY HOUSING NECESSARY IN THE INTEREST OF PUBLIC HEALTH, SAFETY, OR WELFARE OF THE RESIDENTS OF THE CITY AND SETTING A PUBLIC HEARING ON CREATION OF THE PLAZA DRIVE URBAN REVITALIZATION AREA WHEREAS, as a preliminary step to exercising the authority to approve an area for "urban revitalization" conferred upon Iowa municipalities by Chapter 404 of the Code of Iowa, a municipality must adopt a resolution finding that the rehabilitation, conservation, redevelopment, economic development, or a combination thereof of the area is necessary in the interest of public health, safety, or welfare of the residents of the city; and WHEREAS, Lot 1 of Asbury Plaza No 16 in the City of Dubuque, Iowa, according to the recorded plat thereof (the Area) is the location of a proposed thirteen building residential development with approximately 30-units in each building by Talon Development (the Company); and WHEREAS, the City Council finds that development of housing and residential development, including single or multifamily housing in this location is appropriate and necessary in the interest of the welfare of the residents of the City, and the property substantially meets the criteria for Urban Revitalization according to Section 404.1 of the Code of Iowa; and WHEREAS, the Iowa Code requires a public hearing on creation of the Urban Revitalization Area. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Clerk is directed to publish notice of a public hearing on the adoption of an Urban Revitalization Plan for the Plaza Drive Urban Revitalization Area to be held on December 19, 2022, at 6:30 p.m. in the Historic Federal Building in Dubuque, Iowa, 350 W. 6T" Street, Dubuque, Iowa and that said notice shall generally identify the area covered by the Plan and the general scope of the Urban Revitalization Plan activities planned for such area. Passed and approved this 5ch day of December, 2022. // WElio- Attest: Adrienne N. Breitfelder, City Clerk NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE ADOPTION OF A PROPOSED URBAN REVITALIZATION PLAN FOR THE PLAZA DRIVE URBAN REVITALIZATION AREA PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 191h day of December, 2022, at 6:30 p.m., in the Historic Federal Building, 350 W. 6th Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to take action on the adoption of an urban revitalization plan designated as the Plaza Drive Urban Revitalization (the "Plan") under the authority of Chapter 404, Code of Iowa, as amended. The property which comprises the revitalization area within which the Plan shall be applicable consists of only properties located within the Plaza Drive Urban Revitalization Area, legally described as Lot 1 of Asbury Plaza No 16 in the City of Dubuque, Iowa, according to the recorded plat thereof. Chapter 404, Code of Iowa, as amended, and the Plan authorize the City to provide property tax exemptions for property on which improvements have been made. At the meeting, the City Council will receive in -person and virtual comments from any resident or property owner of said City to the above action. The official agenda will be posted the Friday before the meeting and will contain public input options. The City Council agenda can be accessed at: https://cityofdubugue.novusagenda.com/AgendaPublic/ or by contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org. At said time and place of public hearings all interested citizens and parties will be given an opportunity to be heard for or against said proposal. Written comments regarding the above public hearings may be submitted to the City Clerk's Office via email at ctyclerk@cityofdubuque.org or by mail to City Clerk's Office, City Hall, 50 W. 13th St., Dubuque, IA 52001, before said time of public hearing. At said time and place of public hearings the City Council will receive any written comments received by the City Clerk's Office before said time of public hearing. Copies of supporting documents for the public hearings are on file in the City Clerk's Office and may be viewed Monday through Friday between 8:00 a.m. and 5:00 p.m. Individuals with limited English proficiency, vision, hearing, or speech impairments requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD (563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing individuals can use Relay Iowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the 51h day of December 2022. Adrienne N. Breitfelder, City Clerk 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 RE Subject Property ;;t'= c < . � ., � aid' �• i u dop ar useorrxs Legend �B _ � ar,,TMeusenn«xow�oa�s,xnr,wr« �r �sEsrxEM�r��xAExrax TME�rooE=xorw .1 xFox� raxa a < IS Plaza Drive Urban Revitalization Area s ,.ExCE-SED ARE=°ofRELIANr t