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Cedar Cross Road Urban Revitalization PlanCity of Dubuque City Council Copyrighted May 19, 2025 ITEMS SET FOR PUBLIC HEARING # 1. ITEM TITLE: Cedar Cross Road Urban Revitalization Plan SUMMARY: City Manager recommending City Council adopt a resolution setting a public hearing for June 2, 2025, to consider approving the Cedar Cross Road Urban Revitalization Plan. RESOLUTION Fixing The Date For A Public Hearing Of The City Council Of The City Of Dubuque, Iowa, Finding An Area Referred To As The Cedar Cross Road 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 Cedar Cross Road Urban Revitalization Area SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: June 2, 2025 ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. Cedar Cross Road Urban Revitalization Plan 4. Area Map 5. Conceptual Plan —Cedar Cross Road Project 6. Rendering of Cedar Cross Road apartments 7. Long Range Planning Advisory Commission Recommendation to CC 8. Notice of Hearing 9. Resolution Setting Hearing Page 518 of 950 Dubuque THE C D!Uj-!B AII-America Ciq 11111.1 II Masterpiece on the Mississippi YP PP zoo�•*o 13 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Setting Public Hearing to Adopt a Cedar Cross Road Urban Revitalization Plan DATE: May 12, 2025 Economic Development Director Jill Connors is recommending City Council adopt a resolution setting a public hearing for June 2, 2025, to consider approving the Cedar Cross Road Urban Revitalization Plan. The plan recommends a ten-year period of 100% abatement on the increased property value due to a shortage of housing inventory and significant development costs. In September 2022, following a housing study which indicated the need for over 1.100 housing units before the year 2030, the Dubuque City Council approved the expansion of incentives to be offered to developers of housing units. This slate of incentives included the creation of Urban Revitalization Areas in order to facilitate the development of multifamily housing. Previously, Urban Revitalization Areas had been used in Dubuque for low-income housing tax credit projects; however, the Council approved the use of Urban Revitalization Areas for market -rate and workforce housing per Iowa Code Chapter 404. At that time, the recommended abatement schedule for market -rate units was a declining scale over a ten-year period. However, due to the ongoing dearth of housing inventory, the decreased value of abatement under Chapter 404 due to the school district levy being excluded from the allowed abatement, and significant development costs for a proposed project along Cedar Cross Road, including off -site public improvements on the street and for sanitary sewer extensions — staff is recommending the creation of an Urban Revitalization Area that provides ten years of 100% abatement on the increased value of the property. From 2010 to 2020, according to the US Census Bureau, of the 99 counties in the State of Iowa only 30 grew in population, and only 8 of those grew by more than 5,000 people. Of those 8 counties that grew by more than 5,000 people only Dubuque County (City of Dubuque) and Scott County (City of Davenport) were outside the Polk County (City of Des Moines)/Story County (City of Ames) and Johnson County (City of Iowa City)/ Linn County (City of Cedar Rapids) corridors. Page 519 of 950 From 2020 to 2024, according to the US Census Bureau's Vintage 2024 population estimates, only 7 counties in the State of Iowa showed a population increase of more than 900 people, and only Dubuque County (+934) was outside the Polk County/Story County and Johnson County/Linn County corridors. This means that according to the US Census Bureau Dubuque County population grew by almost 6,000 people from 2010 to 2024, approaching 100,000 population. Since July 1, 2022, Greater Dubuque Development Corporation reports there has been over $805 million in new construction in Dubuque County creating over 1,000 jobs. The Long -Range Planning Advisory Commission, finding consistency with the 2017 Imagine Dubuque Comprehensive Plan, voted 4-0-2 to recommend approval. A development agreement with CC15, LLC, will be presented to the City Council separately. I concur with the recommendation and respectfully request Mayor and City Council approval. ju� k�4 Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director 2 Page 520 of 950 Dubuque Economic Development Department THE CITY OF 1300 (wain street All•Ameria10V Dubuque, Iowa 52001-4763 UB E I k"I""`"I""q Office (563) 589-4393 1 I I TTY (563) 690-6678 I® http://www.cityofdubuque.org 2007-2012*2013 Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Resolution Setting Public Hearing to Adopt a Cedar Cross Road Urban Revitalization Plan DATE: May 14, 2025 INTRODUCTION This memorandum is a request for the City Council to adopt the attached resolution setting a public hearing for June 2, 2025 to consider approval of the proposed Cedar Cross Road Urban Revitalization Plan. :J_TeJ:(rj:lomk,Ic' In September 2022, following a housing study which indicated the need for over 1.100 housing units before the year 2030, the Dubuque City Council approved the expansion of incentives to be offered to developers of housing units. This slate of incentives included the creation of Urban Revitalization Areas in order to facilitate the development of multifamily housing. Previously, Urban Revitalization Areas had been used in Dubuque for low-income housing tax credit projects; however, the Council approved the use of Urban Revitalization Areas for market -rate and workforce housing per Iowa Code Chapter 404. DISCUSSION At that time, the recommended abatement schedule for market -rate units was a declining scale over a ten-year period. However, due to the ongoing dearth of housing inventory, the decreased value of abatement under Chapter 404 due to the school district levy being excluded from the allowed abatement, and significant development costs for a proposed project along Cedar Cross Road, including off -site public improvements on the street and for sanitary sewer extensions — staff is recommending the creation of an Urban Page 521 of 950 Revitalization Area that provides ten years of 100% abatement on the increased value of the property. The Long Range Planning Advisory Commission has reviewed the proposed plan for the Cedar Cross Road Urban Revitalization Area for consistency with the 2017 Imagine Dubuque Comprehensive Plan in accordance with Section 15-2-13G of the City Code. By a vote of 4-0-2, the Commission recommends approval of the Urban Revitalization Plan for the creation of the Cedar Cross Road Urban Revitalization District. A development agreement with the developer, CC15, LLC, has been negotiated and will be brought to City Council separately for approval. RECOMMENDATION I recommend the City Council adopt the attached resolution setting a June 2, 2025 public hearing to consider approval of the proposed Cedar Cross Road Urban Revitalization Plan. F, Page 522 of 950 Cedar Cross Road Urban Revitalization Plan 1.0 Introduction The following plan describes certain provisions of the Iowa Urban Revitalization Act for the Cedar Cross 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 Cedar Cross Road Urban Revitalization Plan will be based upon the need for construction 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 three undeveloped parcels situated on Cedar Cross Road. Page 523 of 950 Cedar Cross Road Urban Revitalization Plan Page 2 of 5 2.2 Zoning Lot 1, Lot 2 and Lot 3 of Cedar Ridge Commercial Park in the City of Dubuque, Iowa, are 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 vacant and consists of grassland. The proposed land use is multi -residential for multi -family structures. 2.4 Assessed Valuation and Owners of Records 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 multi -family housing units. Only parcels properly zoned and provide new housing units are eligible. Parcels in the Cedar Cross Road 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 are housing, retail and commercial properties in the immediate surrounding areas. Page 524 of 950 Cedar Cross Road Urban Revitalization Plan Page 3 of 5 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 four miles. 4.1 Historic Significance The Cedar Cross Road Urban Revitalization Area has historically been used as farmland. A farmhouse on the site was demolished May 14, 2013. 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, 100% exemption of the actual value added by the improvements. b) "Qualified real estate" means real property, other than land, which is located in a designated revitalization area and to which improvements have been added, during the time the area was so designated, which have increased the actual value by at least 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 as certified by the City Assessor. d) Any construction or improvements that were assessed before the area was officially designated will not be eligible for exemption. Construction beginning 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 Cedar Cross Road Urban Revitalization District shall continue until their expiration. e) New Construction must result in a structure meeting applicable building, plumbing, mechanical, electrical, and other code requirements of the City of Dubuque. 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 Page 525 of 950 Cedar Cross Road Urban Revitalization Plan Page 4 of 5 designation of the Cedar Cross Road 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 transition to affordable units 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) and Housing Tax Increment Financing. 6.0 Application Procedure This area, upon designation, will follow the procedures for application and granting 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 period. If the project meets all three criteria, the City shall forward the application to the assessor Page 526 of 950 Cedar Cross Road Urban Revitalization Plan Page 5 of 5 by March 1 st, with a statement as to which exemption applies. Applications for exemptions for succeeding years on approved projects are not 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. 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) on following page. Page 527 of 950 Page 528 of 950 PROPOSE 6-3 STC PARKING PROVIDE[ PARKING ADA STALLS PROVIDED = 7 STALLS TOTAL STALLS = 286 STALLS I AL SCALE IN FEET 50 100 HAVE BEEN REDUCED bD W N ��-w L�J origindesign.com 800 556-4491 © Origin Design Co. Client Name CALLAHAN CONSTRUCTION, INC. Project Name CEDAR CROSS RD DEVELOPMENT Location / Description 380 CEDAR CROSS RD, DUBUQUE, IA 0 4-1 L Cn 0 m U 0 0 u- u- a� Cn o (n Cn o co N r M Y M � Lu O U 0 Z � ate' C" U U N .0. .0 j o n % N Sheet Title CONCEPTUAL PUD SITE PLAN Page 529 of 950 I THE CITY OF DUB TE Masterpiece on the Mississippi Dubuque Planning Services Department City Hall - 50 West 13th Street uI-Awiapry Dubuque, IA 52001-4845 I I (563) 589-4210 phone I I (563) 589-4221 fax 2007-2012.2013 (563) 690-6678 TDD 2017*2019 plan ning(a)cityofdubugue.org March 20, 2025 The Honorable Mayor and City Council City of Dubuque 50 W. 13t" Street Dubuque, IA 52001 SUBJECT: Creation of the Cedar Cross Road Urban Revitalization Area Dear Mayor and City Council Members: Introduction The Long Range Planning Advisory Commission has reviewed the proposed plan for the Cedar Cross Road Urban Revitalization Area for consistency with the 2017 Imagine Dubuque Comprehensive Plan in accordance with Section 15-2-13G of the City Code. Discussion Alexis Steger, Housing & Community Development Director, provided an information packet on the proposed plan for the Cedar Cross Road Urban Revitalization District, noting that it will add to the City's tax base in the future. The property situated on Cedar Cross Road is zoned to accommodate multi -family structures. The area encompasses an undeveloped former farm area with no structures on site. The housing in the surrounding area is single- family and multiple -family housing. The Revitalization Area is in a mixed use area with residential, commercial, and light industrial uses. Within one mile of the Revitalization Area there is a grocery store, pharmacy, retail establishments, local transit, and restaurants. Additionally, there are numerous employment opportunities within one mile of the Revitalization Area, which include the establishments listed above as well as several commercial employers. The Commission discussed the project and found the proposal consistent with the 2017 Imagine Dubuque Comprehensive Plan. Recommendations By a vote of 4-0-2, the Commission recommends approval of the Urban Revitalization Plan for the creation of the Cedar Cross Road Urban Revitalization District, as it is consistent with the 2017 Imagine Dubuque Comprehensive Plan. Service People Integrity Responsibility Innovation Teamwork Page 531 of 950 Respectfully submitted, Michael Rabagia, Chairperson Long Range Planning Advisory Commission cc: Jill Connors, Economic Development Director Service People Integrity Responsibility Innovation Teamwork Page 532 of 950 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 2nd day of June, 2025, 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 Cedar Cross Road Urban Revitalization Plan (the Plan) under the authority of Chapter 404, Code of Iowa, as amended, for the property to be known as the Cedar Cross Road Revitalization Area, legally described as Lot 1, Lot 2 and Lot 3 of Cedar Ridge Commercial Park 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 oral and written 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://dubugueia.portal.civicclerk.com/ or by contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org. 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. 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 19th day of May 2025. Adrienne N. Breitfelder, City Clerk Page 533 of 950 Prepared by Jill Connors, Economic Development Director, 1300 Main St, Dubuque, IA 52001 (563) 589-4213 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13`h St. Dubuque, IA 52001 (563) 589-4100 RESOLUTION NO. 165-25 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, FINDING AN AREA REFERRED TO AS THE CEDAR CROSS ROAD 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 CEDAR CROSS ROAD 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, the City Council of the City of Dubuque has heretofore approved the preparation of a Cedar Cross Road Urban Revitalization Plan finding that the rehabilitation, conservation, redevelopment, economic development, or a combination thereof of the area described therein to be known as the Cedar Cross Road Urban Revitalization Area is necessary in the interest of public health, safety, or welfare of the residents of the city; and WHEREAS, Lot 1, Lot 2 and Lot 3 of Cedar Ridge Commercial Park in the City of Dubuque, Iowa, according to the recorded plat thereof is the location of a proposed 180- unit apartment development by CC15, LLC (the Property) in the Cedar Cross Road Urban Revitalization Area; 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 Cedar Cross Road Urban Revitalization Area to be held on June 2, 2025, 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, approved and adopted this 19th day of May, 2025. �)-'(. ATTEST: gr, jam. A, 0-4 Adrienne N. Breitfelder, City Clerk