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Public Hearing and Approval of Plaza Drive Urban Revitalization Plan_HearingCity of Dubuque City Council Meeting Public Hearings # 04. Copyrighted December 19, 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 approval of the Plaza Drive Urban Revitalization Plan and district designation, 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 Type Public Hearing for the Creation of Plaza Drive Urban City Manager Memo Revitalization District-MVM Memo Staff Memo Staff Memo Ordinance Adopting Urban Revitalization Area - Plaza Ordinance Drive Urban Revitalization Plan for Plaza Drive Supporting Documentation Map of UR Area Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 z0i7*20*�oi9 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: December 15, 2022 Housing & Community Development Director Alexis Steger is recommending City Council approve the Plaza Drive Urban Revitalization Plan and district designation. 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 by Talon Development 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 f•[yT/f•i�i Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE CITY OF DUB EE Masterpiece on the Mississippi TO: FROM: DATE: RE: Introduction Michael C. Van Milligen, City Manager Dubuque *America City .F 2007 • 2012 • 2013 Alexis M. Steger, Housing and Community Development Director December 14, 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. An incorrect name was placed on the publication announcing the public hearing. To ensure the public was provided a proper opportunity to provide input, City Council set a public hearing at the December 5t", 2022 meeting to be held on December 19t", 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 of Percentage of Value Exemption Added Exempted 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 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 by Talon Development 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 December 19, 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. 3 I respectfully request the City Council hold a public hearing and approve the Plaza Drive Urban Revitalization Plan. Cc: Crenna Brumwell, City Attorney Wally Wernimont, City Planner 12 Prepared by Alexis Steger Housing & Community Devel 350 W. 6" St.,Suite 312 (563) 690-6072 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131" St., Dubuque, IA 52001, (563) 589-4100 ORDINANCE NO. 45-22 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 December 19, 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 19th day of December 2022. Attest: rad M. Ca rl g , Mayor 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 RtIVI�C 4relro j t 1)-4IctI-Xw,i, CeT)-9 -15:_7)}. 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 circulation 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: 12/09/2022 and for which the charge is 44.32 S bscribed to before me, a Notary Pub ' n and for Dubuque County, Iowa, this 9th day of December, 2022 Notary Pu On and for Dubuque Coun y, Iot wa. e� t e JANET K. PAPE o Commission Number 199659 r My Commission Expires ' rows 12/11/2025 Ad text : CITY OF DUBUQUE, IOWA OFFICIAL NOTICE 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 19th 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://cityofdubuque.novusagenda.com/AgendaPublic/ or by contacting the City Clerk's Office at 563-5894100, 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 Clerks 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 5th day of December 2022. Adrienne N. Breitfelder, City Clerk It 12/9 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 circulation 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: 12/23/2022 and for which the charge is 33.20 'elt)6 Subscribed to before me, a Notary P is in and for Dubuque County, Iowa, this 27th day of December, 2022 Notary Public in and for Dubuque County, Iowa. SH.ARON WEL.BORN C-oimiin iss;iioim Nuu berr 8:27408 Ftq c*Immm. Ex:p. Pr'OY 10, 202:3 Ad text ; OFFICIAL PUBLICATION ORDINANCE NO. 45-22 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 December 19, 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 19th day of December 2022. /s/Brad M. Cavanagh, Mayor Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 23rd day of December, 2022. /s/Adrienne N. Breitfelder, City Clerk It 12/23