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Resolution Setting Public Hearing to Adopt a Lake Ridge Urban Revitalization PlanCity of Dubuque City Council Copyrighted September 15, 2025 ITEMS SET FOR PUBLIC HEARING # 1. ITEM TITLE: Resolution Setting Public Hearing to Adopt a Lake Ridge Urban Revitalization Plan SUMMARY: City Manager recommending City Council adopt the attached resolution setting a public hearing for October 6, 2025, to consider approval of the proposed Lake Ridge 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 Lake Ridge 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 Lake Ridge Urban Revitalization Area SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: October 6, 2025 ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. Lake Ridge Urban Revitalization Plan 4. Notice of Hearing 5. Resolution Page 658 of 1171 THE CITY OF DUB E-E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Setting Public Hearing to Adopt a Lake Ridge Urban Revitalization Plan DATE: September 10, 2025 Dubuque All -America Ciq IIIr II 2007.2012.2013 2017*2019 Economic Development Director Jill Connors is recommending City Council adopt the attached resolution setting a public hearing for October 6, 2025, to consider approval of the proposed Lake Ridge Urban Revitalization Plan. CAL5, LLC, a subsidiary of Callahan Construction, purchased the property in June, 2025. The previous property owner planned to construct three multi -family apartment buildings on the property, but only constructed one building completely, and one building partially. As of January 1, 2025 only 75% of the second building had been assessed. To incentive the completion of this project, Staff recommend applying a 73% tax abatement on the incremental property value generated by the completion of the project for a duration of 10 years. The incremental property taxes will be those taxes generated above the existing 2025 assessed valuation. The property currently resides within an urban renewal district but must also reside in an urban revitalization area in order to receive tax abatement. The Long Range Planning Advisory Commission will review the proposed plan for the Lake Ridge Urban Revitalization Area for consistency with the 2017 Imagine Dubuque Comprehensive Plan in accordance with Section 15-2-13G of the City Code. The Commission will forward its recommendation of the Urban Revitalization Plan for the creation of the Lake Ridge Urban Revitalization District prior to the public hearing. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�'tA� k�4 Mic ael C. Van Milligen Page 659 of 1171 MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connor, Economic Development Director Page 660 of 1171 Dubuque Economic Development Department THE CITY OF 1300 (wain street All-AM111094 Dubuque, Iowa 52001-4763 UB E vxxwi 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 Lake Ridge Urban Revitalization Plan DATE: September 9, 2025 INTRODUCTION This memorandum is a request for the City Council to adopt the attached resolution setting a public hearing for October 6, 2025 to consider approval of the proposed Lake Ridge 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. CAL5, LLC, a subsidiary of Callahan Construction, purchased the property in June, 2025. The previous property owner planned to construct three multi -family apartment buildings on the property, but only constructed one building completely, and one building partially. As of January 1, 2025 only 75% of the second building had been assessed. Any construction or improvements that were assessed before the area is officially designated will not be eligible for exemption. Page 661 of 1171 DISCUSSION To incentive the completion of this project, Staff recommend applying a 73% tax abatement on the incremental property value generated by the completion of the project for a duration of 10 years. The incremental property taxes will be those taxes generated above the existing 2025 assessed valuation. Previously, a market -rate multifamily housing project was eligible for a declining abatement schedule over a 10-year period, beginning at 80% the first year and ending with 20% in year ten. However, the Iowa legislature recently removed the school foundational support tax from the eligible taxes to be abated. This school foundational support tax amounts to approximately 40% of the property taxes. City staff have determined that a flat 73% abatement schedule for 10 years, minus the school foundational property tax, would be an equal value to the intended 10-year declining schedule that included the school foundational support tax. The property currently resides within an urban renewal district but must also reside in an urban revitalization area in order to receive tax abatement. The Long Range Planning Advisory Commission will review the proposed plan for the Lake Ridge Urban Revitalization Area for consistency with the 2017 Imagine Dubuque Comprehensive Plan in accordance with Section 15-2-13G of the City Code. The Commission will forward its recommendation of the Urban Revitalization Plan for the creation of the Lake Ridge Urban Revitalization District prior to the public hearing. RECOMMENDATION I recommend the City Council adopt the attached resolution setting an October 6, 2025 public hearing to consider approval of the proposed Lake Ridge Urban Revitalization Plan. F, Page 662 of 1171 Lake Ridge Urban Revitalization Plan 1.0 Introduction This Plan describes certain provisions of the Iowa Urban Revitalization Act for the Lake Ridge Urban Revitalization Area. The State of Iowa, under Iowa Code Chapter 404, allows cities to designate areas as urban revitalization districts. Under this statute, 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: 1. An area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, the existence of conditions which endanger life or property by fire and other causes or a combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime, and which is detrimental to the public health, safety, or welfare. 2. An area which by reason of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, incompatible land use relationships, faulty lot layout in relation to size, adequacy, accessibility or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the actual value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or a combination of such factors, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, or welfare in its present condition and use. 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. Page 663 of 1171 Lake Ridge Urban Revitalization Plan Page 2 of 6 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 Lake Ridge 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 Area in the City of Dubuque. The Area encompasses one underdeveloped parcel situated on Lake Ridge Drive. 2.2 Zoning BLK 1 CEDAR LAKE ADD NO 2 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 includes two existing multifamily buildings and the remainder of the Area 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 Legal Description: BILK 1 CEDAR LAKE ADD NO 2 Owner of Record: CAL5, LLC Land Value: $441,000 Dwelling Value: $3,488,400 Total Assessed Value: $3,929,400 3.0 Relocation No relocation of residents should occur due to the development of the parcel identified for this Area. Should relocation occur because of rehabilitation in the proposed Area, 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 § 404.2. 4.0 Qualification of Areas Page 664 of 1171 Lake Ridge Urban Revitalization Plan 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 Lake Ridge 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. The Urban 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 Lake Ridge Urban Revitalization Area has historically been undeveloped property adjacent to residential and commercial development. There have been two buildings constructed on the qualifying parcels to date, beginning in December 2023 and completed in June 2025 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 Iowa Code § 404.3(4), providing for a ten-year, 73% exemption of the actual value added by the improvements. Under Iowa Code 404.3D, the property tax exemption on residential property shall not apply to property tax levies imposed by a school district. 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 (10%) 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 Page 665 of 1171 Lake Ridge Urban Revitalization Plan Page 4 of 6 not be eligible for exemption. All exemptions existing at the time of the repeal of the Lake Ridge 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 in Section 5.1(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 an Urban Revitalization Area commencing upon the adoption of the ordinance approving this Urban Revitalization Area by the City Council. The designation of the Lake Ridge 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. 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 Page 666 of 1171 Lake Ridge Urban Revitalization Plan Page 5 of 6 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 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 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 Revitalization Area 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. Page 667 of 1171 EXHIBIT A MAP Lake Ridge Urban Revitalization Plan Page 6 of 6 Page 668 of 1171 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 6th day of October, 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 Lake Ridge Urban Revitalization Plan (the Plan) under the authority of Chapter 404, Code of Iowa, as amended, for the property to be known as the Lake Ridge Revitalization Area, legally described as Block 1 of CEDAR LAKE ADDITION NO. 2, 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.civiccierk.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 15th day of September, 2025. Adrienne N. Breitfelder, City Clerk Page 669 of 1171 Prepared by: Ian Hatch, Assistant Economic Development 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. 301-25 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, FINDING AN AREA REFERRED TO AS THE LAKE RIDGE 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 LAKE RIDGE 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 Lake Ridge 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 Lake Ridge Urban Revitalization Area is necessary in the interest of public health, safety, or welfare of the residents of the city; and WHEREAS, Block 1 of CEDAR LAKE ADDITION NO. 2, in the City of Dubuque, Iowa, according to the recorded plat thereof (the Property) is the location of a proposed apartment development by CAL5, LLC in the Lake Ridge 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 Lake Ridge Urban Revitalization Area to be held on October 6, 2025, at 6:30 p.m. in the Historic Federal Building in Dubuque, Iowa, 350 W. 6th 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 15th day of September, 2025. ATTEST: Adrienne N. Breitfelder, City Clerk '-- -- --- i � , ez:��Vg- Brad M. Cayoggh, Mayor 2