Legislative Priorities 2002MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
October 30, 2001
Legislative Priorities 2002
Assistant City Manager Cindy Steinhauser, with input from staff, has compiled a list of
the City's legislative issues for the upcoming session. Additionally, Cindy has been in
contact with the Iowa League of Cities and has included the Iowa League's Legislative
Priorities. Both lists are attached.
I respectfully recommend Mayor and City Council approval of both sets of priorities for
presentation to our Legislators.
Michael C. Van Milligen
MCVM/ksf
Attachment
cc: Barry Lindah[, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Tom Bredeweg, Executive Director, Iowa League of Cities
CITY OF DUBUQUE
STATE LEGISLATIVE ISSUES
FOR THE 2002 SESSION
State Budget
The State of Iowa is facing a revenue shortfall and is proposing across-the-board
cuts in expenses. Some of these cuts will reduce revenues to cities, with no
relief to cities for state-mandated programs.
Requested Action: As the state does a thorough review of its own operation to
determine operational efficiencies, the state should either not cut municipal
revenues or review state-mandated programs to determine which mandates can
be eliminated.
Funding of Major Transportation Projects
The State of Iowa has used a strategy of allocating funds for completing the
major transportation projects in the state as opposed to using a piecemeal
approach. This strategy has been successful with extensive work being
completed on major corridors. The same strategy should be used for major
projects in larger cities, which require significant funding commitments for
completing the projects in a reasonable amount of time. Examples include the
Southwest Arterial, the Julien Dubuque Bridge and U.S. 20/Dodge Street.
Requested Action: Support efforts to continue the strategy for funding major
transportation projects throughout the state.
Freezing the Escalating State Tax on Gaming Revenues
The State of Iowa currently levies a 5 percent gaming operations tax on the first
$1,000,000 of the adjusted gross receipts, 10 percent on the next $2,000,000,
and 30 percent on the rest of the adjusted gross receipts. Beginning on January
1, the rate increases to 32 percent and continues to increase at a rate of 2
percent each year until it reaches 36 percent in the year 2004. The scheduled
increases in the tax rate will have a devastating effect on the future of gaming
operations in Iowa, especially the Dubuque Greyhound Park and Casino.
Riverboats have no escalating tax and pay 20 percent.
Requested Action: Enact Legislation that eliminates the current escalator tax,
or set the tax rate at 24.7 percent for all gaming operations, riverboats included,
which would be revenue-neutral to the State.
Enterprise Zone Incentives
The Enterprise Zone legislation was written to promote private investment in
economically distressed areas of a city or county. To assist new employees of
companies locating in enterprise zones, the legislation provides for employers to
establish a capital fund for down payments or rental subsidies. The business
funds this program through a credit from state withholding taxes, based on the
wagers paid to the participating employees. An amount equal to 1.5 percent of
the gross wages paid by the employer is credited from the payment otherwise
withheld, and used to capitalize this fund.
This feature of the legislation has not been utilized to date. One reason is that
the credit produces so little capital for the housing assistance program. For an
employee earning $10 per hour, the credit equals approximately $300. Typically,
down payment assistance programs offer $3,000 to $5,000; rental subsidy
programs average $2,500 to $3,000 annually. In order to make this program
effective, the credit for withholding should be increased.
Another option is to allow the credit to be "pooled," to be made available to all
eligible employees. As the legislation currently is written, the 1.5 percent credit is
made available on the basis of withholding from individual employees - for the
benefit of only that employee. If the credit could be aggregated, a larger capital
fund could be established, from which all employee purchasing or renting
housing in the enterprise zone could access funds for their housing needs.
Another reason for lack of employer participation in this program is that the
legislation requires the employer to choose between use of the tax credit for job
training or for providing a housing assistance program. Employers to date have
chosen to use the credit to pay for training new employees.
Requested action: The legislation should be amended to provide the credit for
both job training and employee housing assistance and to "pool" the funds. This
will increase the tax credit and increase interest in the program by employers.
Venture Capital Legislation
A bill will be introduced in January 2002 that would create a "back end" tax credit
for private venture investments. According to Price Waterhouse, Iowa secured
only .074% of all venture capital in 2001. In addition, the Milken Institute (which
ranked the Greater Dubuque area 18th in the U.S. for high tech growth), rated
Iowa 49th out of 50 states for business starts and 46th out of 50 for venture
capital. The proposed legislation protects potential investors by offering a tax
credit if the business fails. That is, if the business is profitable and making
money, no tax credit will be issued. This plan simply provides a safety net to
encourage private investment. Moreover, there is no impact on the state's
immediate budget because the credits are offered on "the back end" after 10
years.
Consider the following:
· Investment tax credits provide incentive for private investments in
preferred stock
· Iowa venture capital is invested in multiple qualified funds selected
through a rigorous, competitive process
· Funds have a strategic focus that are congruent with state and local
economic objectives
· Tax credits are employed only after investment results are known
· NO negative impact on the state budget unless credits are used
Requested action: Support legislation that provides a "back end" tax credit for
private venture investments. Private investors in the greater Dubuque area, and
throughout the state, are more likely to invest with some form of
protection/incentive.
Property Tax Reform
The current tax structure for state and local governments is a mix of tax laws,
rates and policies that do not provide for a fair and consistent tax system. It is
the result of many years of adopting tax changes that may or may note be
consistent with previous laws or tax policies. Often, the tax policies are
contradictory, such as the residential rollback's shift of tax burden from
residential to commercial and industrial property owners, and the elimination of
machinery and equipment tax, which shifts the tax burden from industrial to
residential and commercial property owners.
Requested action: Perform a comprehensive review of the entire tax structure
of the State of Iowa and design a tax structure that provides tax equity and
policies that are consistent with an overall direction for state and local
government taxation.
Military Tax Credit
The State of Iowa provides for veterans to receive a military tax credit on their
property taxes. The credit reduces their City property tax by the levy rate of the
City, which is $10.76 per $1,000 of valuation. The State, however, reimburses
the City at a much lower rate, which potentially will be reduced again. This
leaves a substantial deficit for other property owners to pay.
Requested action: Enact legislation to fully reimburse cities for the State of
Iowa's military tax credits.
Reimbursement Rates for Police Training
Cities are required to send new police officers to the Iowa Law Enforcement
Academy for 12 weeks of training at a cost of $13,000 per officer. This
investment in the officer's training is lost of the officer leaves the force soon after
the training. The State is phasing out a program to reimburse cities for these
costs.
Requested action: Enact legislation to provide a higher level of reimbursement
for the losses cities incur when law enforcement officers leave a force soon after
the training.
Provision of Child Day Care
The major changes in the welfare delivery system in the past years will have
impacts on citizens, businesses, agencies, and all levels of government. The
requirements that recipients acquire a job or attend an educational institution will
cause people to be away from the home more frequently. More two-parent
households have two wage earners, particularly in the state of Iowa. This trend
also creates an increased need for quality day care.
Requested action: Enact legislation providing solutions and funding for day
care services for families.
Eliminate the "20% Objection Rule" for Rezonings
Section 414.5 of the Iowa Code requires a favorable vote by three-fourths of the
City Council members - a 6 to 1 vote - to approve a rezoning request over the
written objections of 20 percent or more of the owners of the property being
rezoned, or 20 percent or more of the property owners within 200 feet of the
subject property. The concepts that nearby property owners have a say in
rezoning cases is valid; however, this must be balanced against the needs of the
entire community. At 20 percent, a minority of property owners can dictate the
outcome of community development, especially when one property owner with a
large tract of land can constitute the entire 20 percent.
Requested action: Raise the "objection percentage" of owners of property
within 200 feet from 20 percent to a simple majority; or require a favorable vote
by two-thirds of the City Council members, or a 5 to 2 vote, when the objection
threshold is reached.
Property Owners on Historic Preservation Commissions
Section 303.34 of the Iowa Code requires that: "At least one resident of each
designated area of historical significance shall be appointed to the commission."
This requirement is problematic for the City of Dubuque's Old Main Historic
District, which is primarily commercial. It would be beneficial for the City in the
recruitment and retention of commissioners to be able to appoint property owners
to represent historic districts. Furthermore, since historic preservation
regulations apply to the rehabilitation, renovation and restoration of property,
allowing property owners to serve on the commission would be appropriate.
Requested action: Enact legislation allowing property owners to represent
historic districts on the Historic Preservation Commission.
4
Dubuque Regional Airport
The Dubuque Regional Airport, like other airports across the country, continues
to recover from the September 11, 2001, attack on America. Prior to this event,
Iowa airports had identified key issues faced in the coming years. Airports are
asking the State to play a role in improving aviation in Iowa by funding initiatives
that help create a friendly business and political environment, and promote
increased service and competition.
Requested action: Establish an Iowa Aviation Investment Fund to receive state
tax and use fee revenues related to aviation activities, including revenue from
sale of aviation gas and jet fuel, aimraff registrations, and aircraft use fees (sales
tax on aircraft).
Requested action: Appropriate $2.5 million from the General Fund to continue
to fund state aviation programs for the next fiscal year.
Requested action: AppropriateS1.5 million from the Rebuild Iowa Infrastructure
Fund to continue to fund vertical infrastructure projects.
Requested action: Establish an annual standing appropriation from the aviation
trust fund and direct all revenue from aviation gas/fuel, jet fuel, aircraft
registration fees, and aviation use tax revenue to the aviation trust fund.
Appeal of Actions by Historic Preservation Commission
Section 303.34 of the Iowa Code states that an aggrieved party may appeal the
action of a historic preservation commission to the City Council, and then to
district court. The City Council, like the court, has to consider whether the
commission exercised its powers and followed the guidelines established by law
and ordinance, and whether the commission's action was "patently arbitrary and
capricious." This process places the City Council in the difficult and
uncomfortable position of interpreting technical guidelines and determining their
appointees "arbitrary and capricious." The City Council would support an
alternative process.
Requested action: Consider legislation providing an alternative appeals
process regarding an action of the historic preservation commission.
Skate Park Liability
The Iowa Code provides liability for cities for people using roller blades and
skateboards in skate parks. There is a strong interest by bicyclists to use skate
parks, and BMX parks are becoming increasingly popular. However, the Iowa
Code does not exempt cities from liability for skate parks or BMX courses used
by bicyclists.
Requested action: Enact legislation that exempts cities from liability for skate
parks used by bicyclists and for BMX courses and trails used by bicyclists.
Disposal of Fly Ash
The City of Dubuque Water Pollution Control Plant incinerates its sewage sludge
and disposes of the incinerator ash as fill at the Dubuque Metro Solid Waste
Landfill. The fly ash material meets the toxic characteristic leaching procedure
limits set forth Chapter 108 of the Iowa Code and Chapter 67 metals limits for
Class I biosolids. The fly ash has some nutrient and soil amendment value, but
does not qualify as a Chapter 200 fertilizer or soil amendment. Due to higher
landfill fees, limitations on the amount of fly ash accepted at the Dubuque landfill,
and the benign nature of the fly ash, the City of Dubuque would like to consider
using fly ash in other ways including engineered fill. This could lower disposal
costs and eliminate waste material at the landfill.
Requested action: Approve a variance for permitting issued under Chapter 108
by substituting "sludge incineration ash" for "foundry sand," in Chapter 108.4 for
the sewage sludge incineration ash.
State Mandates
Cities are often faced with implementing mandates from the state and federal
governments without receiving the necessary funds for implementation
Requested action: Enact legislation that exempts local government from
providing any new service or engaging in any new activities if the state does not
provide full funding.
Dubuque Greyhound Park & Casino
t997
Riverboat Gaming Tax Rate 20.00%
State Tax Paid in Excess of Riverboats $456~800
Racetrack Casino State Tax Rate 22.00%
AGR Casino $25,840,OD8
State Gaming Tax ($5,274,802)
,late Admissions Tax ($4501000)
State of Iowa - Tax [nomase $450,800
City of Dubuque - Distribution Decrease ($228,4(30)
Chadtable O~ganizatlons ~ Distribution Decrease ($114,200)
DRA - Distribution Decrease ($1141200t
'J998 1999 2000
act, act. proJ.
20.00% 20.00% 20.00%
$110~§,t93 $11846,543 $2~4621058
24.00% 26.00% 28.00%
200t 2002 2003 2004 Total
proj. pm,L proJ. proj.
20.00% 20.00% 20.00% 20,00%
$3,0771572 ~3t693,087 $413081601 $41924,116 $2116231~9
$33,775,722 $33,775,722 $33,776,722 $33,775,722
($9,482,717) ($10,098,231) ($10,713,745) ($11,329,260)
($45o,o~o) ($450,000) ($4s0,000~ ($45o,0~01
$29,379,819 $33,775,722 $33,775,722
($6,531,157) ($8,251,688) ($6,867,202)
(s~o,0ooI ($460,0o01
$1,055,193 $1,846,543 $2,462,058
($527,596) ($923,272) ($1,231,029)
($263,798) ($461,636) ($615,614)
($263,7981 ($4011636) ($615,5141
$3,077,572 $3,693,087 $4,308,601 $4,924,116 $21,823,969
($1,538,780) ($1,846,543) ($2,154,301) ($2,462,058)($10,911,98~
($769,393) ($~23,272) ($1,077,150) ($t,231,029) ($6,455,99~
($769,393t 15923,272) ($t,0771150~ 151,331~029) ($5,455,99;
· State of Iowa · Charities
Increased Gaming Tax Impacts · cityo, [] D.,
Dubuque
6
4
3
0
-1
-2
-3
t997 1998 1999 2000 2001 2002 2003 2004
Year
25
2O
15
10
-10
-15
Total Impact
IOWA LEAGUE OF CITIES
2002 LEGISLATIVE PRIORITIES
Priority: Pursue legislation that changes local government taxation by
reforming the property tax system and identifying other revenue
alternatives for cities.
One of the areas in which cities do not have Home Rule authority is taxation. This
authority falls to the General Assembly. One of the inherent problems of applying
tax policy uniformly to cities is the same tax policy may not be appropriate for
each community's service needs and taxing capacity.
Under property tax limitation proposals that have been introduced for the past few
years, even less budgetary decision-making would be made by locally elected
officials. Instead of local funding priorities being set locally, budgets would be
determined by a revenue formula, irrespective of community budgeting needs.
Although the proposed limitation is touted as property tax reform, in reality it
changes very little of the existing components of the property tax structure.
Rather than considering a property tax limitation as a means of achieving property
tax reform, a more comprehensive approach should be taken. Each of the policies
that comprise the current property tax structure should be examined including the
residential rollback, erosions to the property tax base and levy rate limits.
Along with an examination of the current structure, there should also be an
analysis of both the services currently financed through property taxes and
whether it is appropriate to continue funding certain services in this manner. The
cause and effect relationship between property taxes and level of desired
services cannot be ignored. Addressing only the taxation side of this equation
ignores the factor that drives the need for taxation.
Consideration should also be given to identifying other revenue soumes for local
government that reduce its reliance upon property taxes. Many other states
provide revenue alternatives to property tax, and if the General Assembly
determines that property tax reduction is a goal, then it should also identify other
ways in which to fund local government.
The League will pursue a comprehensive approach to property tax reform that
grants greater local flexibility in determining appropriate revenue levels to meet
service needs.
Priority: Pursue legislation that removes an unfunded mandate enacted by
the 2001 General Assembly that cities complete a cost accounting report on
street, bridge or culvert projects that exceed applicable thresholds.
Last session, the 2001 General Assembly enacted House File 324 (HF 324). This
law set up numerous new requirements for cities concerning bidding for street,
bridge and culvert projects involving construction, reconstruction and
improvements costing over $25,000 ($50,000 for cities over 50,000 in population).
One requirement is a new report that will be labor intensive and taxing to city
public works departments. In addition to the report that cities currently submit on
street receipts and expenditures using road use tax funds, the new report requires
cities to provide detailed cost accounting for all projects within 90 percent of the
bid threshold. The report will also include a report or statement of the cost of
purchasing, leasing, or renting construction or maintenance equipment.
Since the reports are extremely detailed and some cities do hundreds of street
projects annually, this new requirement will entail a city needing additional
resources. HF 324 did not charge the Iowa Department of Transportation to use
this new report for any specific state purpose, resulting in 950 cities expending
resources that could be used elsewhere. This becomes particularly onerous for
small cities that publicly bid the majority of street projects.
The League would like this reporting requirement removed as an unnecessary
mandate on local governments. The League will continue to oppose any new
legislation that attempts to hinder a city's ability to use their own workforce on
public improvements.
2
Priority: Pursue legislation eliminating the requirement that the city
engineer must file the assessment schedule for nuisance abatement costs
incurred by the city.
Cities are often required to perform the abatement of nuisances for safety or
community enhancement. Currently, the Code of Iowa allows cities to recoup the
costs of performing the abatement by assessing the costs against the property for
collection in the same manner as a property tax.
To assess the cost of abatement, the Code refers to the same process for
assessing property owners for public improvements. Although the majority of the
steps are necessary for due process of collection, there is one step that is not
viable in every city. Under Section 384.59, the Code requires that an engineer file
the assessment schedule. This may encumber smaller cities that do not employ
their own engineer, thus making compliance to use an engineer more costly or
simply not feasible.
After proper notification to the property owner, a city is able to recover the cost of
performing the nuisance abatement. Examples of nuisances include snow
removal, mowing, removing junk vehicles or garbage. While it is necessary for an
engineer to file the assessment schedule for public improvements, completing the
types of functions listed above hardly warrants involvement of an engineer.
For smaller communities the restriction of the Code may hinder the process for
assessing and collecting abatement costs. The League will promote legislation
that removes the requirement for an engineer to file the assessment schedule and
that, instead, allows the city clerk to prepare, sign and file the assessment
schedule for nuisance abatement.
Priority: Pursue legislation allowing cities to refute disability claims by
police officers and firefighters for heart and lung ailments if the employee
smokes.
Established as a statewide retirement system in 1992 for police officers and
flrefighters, the Municipal Fire and Police Retirement System of Iowa (MFPRSI) or
411 system is the fund that covers retirement benefits for these employees in civil
service cities. There are 49 civil service cities in Iowa and participation in civil
service is mandatory for all cities over 8,000 in population. Prior to enactment of
MFPRSI, each city determined its contribution level to meet the costs of a state-
determined benefit package. Under the state system, cities no longer determine
contribution amounts. This responsibility rests with the General Assembly.
The MFPRSI system is funded through state, city and employee contributions.
Cities contribute the greatest share to the fund with a mandatory minimum of 17
percent of the employee's salary. Employees contribute 9.35 percent and the
state caps it's contribution at $2.94 million. Although cities already contribute the
highest share, it is also the only pementage that may increase. The problem
created by the current distribution is the state has no incentive to curb the
escalating cost of benefit enhancements because its contribution will not change,
regardless of cost. As a result, employee benefit enhancements are granted by
the state and funded by city property taxpayers having no say in determining the
benefits level.
A major benefit enhancement enacted by the 2000 General Assembly increased
the pension benefit so retirees may receive a maximum of 82 pement of their
average final salary for service retirement. Prior to 2000, the maximum allowed
was 72 pement of average final salary. It is expected that an attempt will be made
to increase this maximum again to at least 90 percent. The League urges the
General Assembly to reject this enhancement as a means of protecting property
taxpayers.
Another costly benefit to the system is a disability policy that deems all heart and
lung ailments contracted by police officers and firefighters to be job-related. Prior
to 2000, this provision applied only to police officers and firefighters in MFPRSI.
This disability benefit has since been expanded to apply to all police officers in
Iowa. One third of all accidental disabilities in the MFPRSI are heart or lung
related. The League strongly advocates that the General Assembly modifies this
policy by allowing cities to refute the heart and lung presumption if the employee
smokes. There is no shortage of evidence linking smoking to heart and lung
disease. In fact, there are other states that grant no heart and lung presumption if
the employee smokes. Some only grant this disability to firefighters but make it a
rebuttable presumption if the employee smokes. Taxpayers cover the cost of this
disability. It is incumbent upon the state to balance the needs of the employee
with those of the taxpayers. For this reason, the state should make the heart and
lung presumption a rebuttable one in cases involving smokers.
4
Priority: Pursue legislation requiring greater disclosure of liens, back taxes,
and property defects on homes sold on a contract basis.
For some prospective homeowners, securing a conventional mortgage is not
possible. One alternative option is to purchase a home on a contract basis. This
has become a prevalent practice in recent years. While a number of companies
that sell homes on a contract basis do provide a necessary service to a customer
that could not otherwise buy a home, there are those who prey on these
customers.
Contract sales are agreements between the buyer and the seller in which the
seller sets financing terms. These agreements are not subject to the consumer
protections and other regulations that apply to conventional lenders. With a
contract sale, the buyer makes payments directly to the seller and does not gain
title to the property until the final payment is made. The buyer is essentially
renting the property until such time as the loan is paid off. These loan agreements
tend to have higher interest rates than conventional mortgages and shorter
balloon periods. In some cases, interest rates are so exorbitant that very little of
the principle is paid, making home ownership impractical.
In addition to a monthly loan payment that may be higher than homes of similar
value, there may be hidden costs as well. Contract home sales are not subject to
mandatory disclosure of back taxes, liens, or nuisances against the property.
Characteristically, these homes also tend to be in need of repair. The buyer may
be unaware of the extent of necessary repairs. Coupled with a higher price than
homes of similar value, these additional costs may be so prohibitive that the buyer
defaults on the contract. Often, there is no grace period granted for default, and
the property reverts to the seller immediately. When it becomes evident to the
buyer that making the monthly payments and repair costs are not viable, there is
a tendency to let the property decline. Homes sold on a contract basis tend to
have a higher occupancy turnover rate and the condition of the property greatly
deteriorates over time, leading to a general decline of the neighborhood.
The League recognizes that buyers should take steps to knowledgeably enter into
contract agreements, but there are changes to Iowa law that would also be
helpful. Requiring full disclosure of owed taxes, liens and nuisances against the
property on the real estate disclosure form should be required. The form should
not allow a seller to circumvent disclosing these items as the current one does. In
addition, any legislation that restricts the authority of cities to inspect such
properties should be opposed.
5
Priority: Pursue legislation that eliminates the imposition of a lien on all city
property if a city loses a judgment and appeals the verdict.
Current Iowa law imposes a lien upon all city property if the city loses a judgment
until such time as the judgment is paid. The only release from the lien is if the lien
holder consents to release. This remedy is unlikely to occur since the lien holder
desires payment. The problem created by this inflexible policy is that all city
property transactions are halted if a city appeals a judgment. The city is prevented
from selling property for development, which hinders economic efforts in the
community.
Another alternative to a city-wide lien needs to be implemented that protects the
plaintiff's right to secure payment without jeopardizing city business. The solution
is to allow for the release of a lien if the city enters a bond in the amount of the
judgment. By the city guaranteeing payment through bonding, the plaintiff has
assurance that the award will be paid if the judgment holds, and the city can
proceed with property transactions until the appeals process has been exhausted.
The Code of Iowa has already established precedence for this procedure with
mechanic's liens. If bonds are secured, the mechanic's lien is removed.
Without this change in the law, necessities such as the building of homes on city
owned property will not be allowed to occur. Allowing cities to secure a bond for
payment protects both the city and the plaintiff without disrupting property
transactions intended for the betterment of the community.
Priority: Support efforts to sustain state investment in cities through
extended funding of the Vision Iowa program and Community Attractions
and Tourism program and modify qualifications to ensure expanded
participation by communities.
The General Assembly, two years ago, adopted landmark legislation aimed at
making Iowa a more attractive destination for native Iowans with the hopes of
retaining current residents and recruiting new ones. The initiative is the Vision
Iowa program, and it epitomizes state and local cooperation in building ambitious
community cultural and recreational attractions. The legislature granted $300
million in bonding capacity to build community attractions all over Iowa. A
statewide board was appointed to review and approve projects based on
community applications.
Projects have been approved for Dubuque, Sioux City, and Council Bluffs.
Several others, including Des Moines have been approved and are currently in
negotiation. These projects range from the development of a riverfront to building
arenas and theaters. Each project must be a minimum $20 million investment with
at least 50 percent of the cost funded by the local entity. The local contribution
may include private investment as well.
The magnitude of projects awaiting consideration dwarfs the amount of available
funding. Many of these projects merit investment by Vision Iowa but will not
receive it because of depleting funds. Although the legislature earmarked $300
million for this initiative, the reality is only $180 to $190 million is actually
available, because the remainder must pay the interest on the bonds.
There is an opportunity to capitalize on this initiative and fulfill the potential
envisioned by proponents by designating additional bonding capacity to reach the
original $300 million threshold. While recognizing the existing shortfall in state
revenues, it is important that Vision Iowa be considered a funding priority. The
program puts into action an effort to make Iowa attractive to current and new
residents rather than paying lip service to the problems of a stagnating
population. There are also long-term, tangible economic benefits to the state.
These projects create jobs and will help the state and local economy through
tourism expenditures. An investment now by the state will reap financial rewards
into the future. The League encourages the legislature to increase its commitment
to the Vision Iowa program.
The other component of funding community attractions that is equally important to
Vision Iowa is the Community Attraction and Tourism program (CAT). It is vital
that the legislature continue its commitment beyond the prescribed five years.
This program is essential to complete projects that are more moderate in scope
than Vision Iowa, but just as valuable to smaller communities.
7
Priority: Continue funding for the Brownfield Redevelopment Program.
A brownfleld site is defined as an abandoned, idled, or underutilized industrial or
commercial facility where expansion or redevelopment is complicated by real or
perceived environmental contamination.
The Brownfield Redevelopment Program was established in 2000 and
appropriated $3 million by the General Assembly. In the first year of the program,
the total appropriation was awarded for five redevelopment projects across Iowa.
These projects included plans for commercial development, neighborhood
revitalization, and riverfront parks of sites that were previously abandoned railroad
yards, hydraulic industrial sites and meat packing facilities.
As land use issues and development of green space becomes more contentious,
Iowa cities are committed to environmental protection and land reuse. The
Brownfield Redevelopment Program removes the disincentives that impede
economic development of these sites and allows cities to encourage development
in areas that were considered unsightly and too costly to clean up.
The 2001 General Assembly appropriated $2 million to the Brownfield
Redevelopment Program. As State programs continue to compete for funding
during the budgeting
8