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Setting a Public Hearing to approve the Radford Road Urban Revitalization Plan Amendment 3_InitiateCopyrighted February 5, 2024 City of Dubuque Items to be set for Public Hearing # City Council Meeting 01. ITEM TITLE: Setting a Public Hearing to approve the Radford Road Urban Revitalization Plan Amendment 3 SUMMARY: City Manager recommending City Council set a public hearing for February 19, 2024, for the Radford Road Urban Revitalization Plan Amendment 3. RESOLUTION Setting a public hearing to amend the Radford Road Urban Revitalization Area Plan SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for February DISPOSITION: 19, 2024Suggested Disposition: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Setting Hearing and Publication Resolutions Amended Plan - Redlined Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Public Hearing & Approval of Radford Road Urban Revitalization Plan Amendment 3 DATE: January 31, 2024 Housing & Community Development Director Alexis Steger is recommending City Council set a public hearing for February 19, 2024, for the Radford Road Urban Revitalization Plan Amendment 3. 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 Wally Wernimont, Planning Services Director Jill Connors, Economic 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: January 29, 2024 RE: Public Hearing & Approval of Radford Road Urban Revitalization Plan Amendment 3 Introduction This memorandum presents information necessary for the February 191", 2024, public hearing regarding the proposed Radford Road Urban Revitalization Plan Amendment 3. 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 the district in 2019 was submitted by the Gardens of Dubuque, and the area was expanded to accommodate other undeveloped area on surrounding parcels. Currently, there is a proposed development of 50-60 affordable multi -family housing units on one of the parcels, from a developer who received Low -Income Housing Tax Credits in 2023 for use on the Development. The Urban Revitalization Plan provided up to 10 years of 100% tax -abatement on new construction of multi -family housing units within the designated area. This amendment will add an abatement schedule that allows for 85% tax abatement for up to 10 years for new market -rate housing developments. Discussion Iowa legislation changed Iowa Code Chapter 404 since the adoption of the Radford Road Urban Revitalization Plan. The changes no longer allow for the 100% abatement of all property taxes imposed, and instead require the school tax portion be paid on the entire value of the property. This change decreases the amount of benefit for developers by approximately 40%. The change is in effect for all improvements made in an Urban Revitalization District starting January 1, 2024. In Iowa Code Chapter 404, the city is allowed to provide a different schedule for abatement if that schedule does not exceed the maximum amount of 100% abatement for 10 years on residential property. To ensure developers in the Radford Road Urban Revitalization Area can receive the same amount of tax abatement as they were prior to the legislative change, the city is proposing these changes. Chapter 404 provides for a public comment period prior to amending an urban revitalization plan. Therefore, city staff is requesting a public hearing be set for February 19, 2024, to adopt the amended plan. Recommendation I respectfully request the City Council hold a public hearing on February 19, 2024, to consider the amended plan as provided. Cc: Crenna Brumwell, City Attorney Wally Wernimont, City Planner Jill Connors, Economic Development Director Prepared by Crenna Brumwell 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 RESOLUTION NO. 24-24 A RESOLUTION SETTING A PUBLIC HEARING TO AMEND THE RADFORD ROAD URBAN REVITALIZATION AREA PLAN 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 City Council wishes to amend the Radford Road Urban Revitalization Area Plan to provide a tax abatement schedule equivalent to the schedule provided prior to Iowa Legislation changes made in 2023; and WHEREAS, the Iowa Code requires a public hearing to amend an Urban Revitalization Area Plan. 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 amended Urban Revitalization Plan for the Radford Road Urban Revitalization Area to be held on February 19th, 2024, 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 5th day of February, 2024. "�� �r�A��40 .d • Attest: av"�" A a&&' Adrienne N. Breitfelder, City Clerk NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE ADOPTION OF AN AMENDED URBAN REVITALIZATION PLAN FOR THE RADFORD ROAD URBAN REVITALIZATION AREA PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 19t" day of February, 2024, at 6:30 p.m., in the Historic Federal Building, 350 W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to take action on the adoption of an amended urban revitalization plan for the Radford Road 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 Radford Road Urban Revitalization Area, adjacent to Roosevelt Middle School. 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://citvofdubugue.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. 13t" 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 5t" day of February 2024. Adrienne N. Breitfelder, City Clerk Radford Road Urban Revitalization Plan 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 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 an undeveloped parcel situated on Radford Road. 2.2 Zoning Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 2 of 8 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 Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 3 of 8 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 BAIL 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 1 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 Adopted February 2020 Amended January 2024 Page 4 of 8 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 Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 5 of 8 many industrial and commercial employers such as Kendall Hunt Publishing, 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) 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 ExemptionA..-. Year 1 PercentageYearof of Value Exempted 85% Year 2 85% Year 3 85% Year 4 85% Year 5 85% Year 6 85% Year 7 85% Year 8 85% Year 9 85% Year 10 85% c) "Qualified real estate" means real property, other than land, which is located in a designated revitalization area and to which improvements have been Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 6 of 8 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. d) 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. e) 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. f) New Construction must result in a structure meeting applicable building, plumbing, mechanical, electrical, and other code requirements of the City of Dubuque. g) 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. h) 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. Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 7 of 8 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. 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 Amended Radford Road Urban Revitalization Plan Adopted February 2020 Amended January 2024 Page 8 of 8 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)