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Resolution Adopting the Cedar Cross Road Urban Revitalization Plan Copyrighted June 2, 2025 City of Dubuque PUBLIC HEARINGS # 1. City Council ITEM TITLE: Resolution Adopting the Cedar Cross Road Urban Revitalization Plan SUMMARY: Proof of publication on notice of public hearing to consider City Council adopt the Resolution adopting the Cedar Cross Road Urban Revitalization Plan, and City Manager recommending approval. RESOLUTION Approving The Urban Revitalization Plan For The Cedar Cross Road Urban Revitalization Area SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTAC H M ENTS: 1. MVM Memo 2. Staff Memo 3. Cedar Cross Road Urban Revitalization Plan 4. Attachment A - Map 5. Resolution of Approval Page 878 of 2490 Dubuque THE CITY QF � All•li�eriea Ciry DLT B E ��, . � �� � � MaSt� Z�C� alZ t�Q Mt55ZSSZ Z zoa�•zoiz•zai3 �' pp zai�*zaig TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Adopting the Cedar Cross Road Urban Revitalization Plan DATE: May 28, 2025 Economic Development Director Jill Connors is recommending City Council adopt the Resolution adopting 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 lowa 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 lowa 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 lowa City)/ Linn County (City of Cedar Rapids) corridors. Page 879 of 2490 From 2020 to 2024, according to the US Census Bureau's Vintage 2024 population estimates, only 7 counties in the State of lowa 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 the developer, CC15, LLC, has been approved by City Council. I concur with the recommendation and respectfully request Mayor and City Council approval. � Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director 2 Page 880 of 2490 Dubuque Economic Development Department THE CITY OF � 130o Main street All-America City Dubuque,lowa 52001-4763 U� � ""�x�,`�`��``���`�'" Office(563)589-4393 � � TTY(563)690-6678 � http://www.cityofdubuque.org 2007*2012�2013 Masterpiece on the Mississippi zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Resolution Adopting the Cedar Cross Road Urban Revitalization Plan DATE: May 27, 2025 INTRODUCTION This memorandum is a request for the City Council a Resolution adopting the Cedar Cross Road Urban Revitalization Plan. BACKGROUND 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 lowa 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 Revitalization Area that provides ten years of 100°/o abatement on the increased value of the property. Page 881 of 2490 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 approved by City Council. RECOMMENDATION I recommend the City Council adopt the attached Resolution adopting the Cedar Cross Road Urban Revitalization Plan. 2 Page 882 of 2490 Cedar Cross Road Urban Revitalization Plan 1.0 Introduction The following plan describes certain provisions of the lowa Urban Revitalization Act for the Cedar Cross Road Urban Revitalization Area. The State of lowa, under lowa 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. lowa 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 883 of 2490 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, lowa, 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 � � 1 � � � � • � � � Lot 1,Lot 2 and Lot 3 Cedar Ridge CC15,LLC $309,700 $0 $0 $309,700 Commercial Park 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 lowa 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 lowa 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 884 of 2490 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 lowa, 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 885 of 2490 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 1 St 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 886 of 2490 Cedar Cross Road Urban Revitalization Plan Page 5 of 5 by March 1St, 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 lowa 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 887 of 2490 •� i: +% ,t ��• .. ��• . . €: � � l - � t,.',� .�. , 333fi��p • �� -'�'7t. •,a.�� ,,�'•: ;• . : `� . i , _ �. � ;-- T'•• � �;'_ . . , k, a t:' 1=�: i �y y ,; ,. �-�� �� ,� .�'':''�. I,f� �� �.�. ,\ '\ ��s-7��� 5_� �" � �. . .. . � � .Y. �tia.�Y��'h`�.ti�.�i'7y��. 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'+ � �: L� .� -�''rGti:.t}E� , • sos �� �" •� . � «�� '�` 3274 � Urban Revitalization Area ti � �!535�'., �. r• �.. .� ,' ,� �.��� � 327�- , 9D � f ;511 � ��* •� �! -•a 32943294 327A � . �..... 1 ,Y, 506, 556 ' ' �294 3274 32� 32343234 '�,. 3203� 3223 :'3223 INIFdC3155-315 . �_. _"� !. 316D �� � � ► =32543254 ,,,r-- = 3233 ' $21 � 526 �'� �3110 318U 3.190 �401 3294 R � f: , 32343234� 3101 � Page 888 of 2490 Prepared by Ian Hatch, Assistant Economic Devel Director, 1300 Main St. Dubuque, IA 52001 (563) 589-4105 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13"' St. Dubuque, IA 52001 (563) 589-4100 RESOLUTION NO. 194-25 APPROVING THE URBAN REVITALIZATION PLAN FOR THE CEDAR CROSS ROAD URBAN REVITALIZATION AREA WHEREAS, by Resolution No. 165-25, adopted May 19', 2025, the City Council of the City of Dubuque, Iowa authorized the preparation of an Urban Revitalization Plan for the Cedar Cross Road Urban Revitalization Area; and WHEREAS, the City of Dubuque's primary objective for the Urban Revitalization Plan is to provide opportunities which will further economic development purposes and objectives and remediate blighting conditions; and WHEREAS, housing creation remains a priority for the City Council of the City of Dubuque, Iowa; 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 proposed Cedar Cross Road Urban Revitalization Area; and WHEREAS, pursuant to published notice, a public hearing was held on June 211d 2025 at 6:30 p.m. on the proposed Cedar Cross Road Urban Revitalization Area Urban Revitalization Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Cedar Cross Road Urban Revitalization Area Urban Revitalization Plan, on file in the City Clerk's Office and made reference to herein, is hereby approved. Section 2. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of this Resolution in the Office of the Dubuque County Auditor. Passed, approved and adopted this 2r,d day of June, 2025. Bradavanagh, Mayor ATTEST: a2h( 'IIIL '1442 Adrienne N. Breitfelder; City Clerk