DAIDC Spec Bldg tax exemptORDINANCE NO. 3-01
AN ORDINANCE AMENDING CHAPTER 15, COMMUNITY DEVELOPMENT, OF
THE CITY OF DUBUQUE CODE OF ORDINANCES BY ADOPTING A NEW
ARTICLE 6, ALLOWING AN EXEMPTION FROM PROPERTY TAXATION FOR
SPECULATIVE SHELL BUILDINGS CONSTRUCTED BY COMMUNITY
DEVELOPMENT ORGANIZATIONS
WHEREAS, Iowa Code § 427.1(27) provides for the allowance of an exemption
from property taxation for the new construction of shell buildings by community
development organizations for speculative purposes or the portion of the value added to
buildings reconstructed or renovated by community development organizations in order
to become speculative shell buildings;
AND WHEREAS, the exemption or partial exemption is allowed only pm'suant to
ordinance of a city;
AND WHEREAS, the City Council finds that it is in the best interests of the City
o£Dubuque to allow such exemption.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, AS FOLLOWS:
Section 1. Chapter 15, Community Development, of the City of Dubuque Code of
Ordinances, is amended by adding the following:
Article VI. Speculative Shell Buildings of Community Development
Organizations
Sec. 15-59. Defmitions. For purposes of this Article, the following definitions
apply:
a. (1) "Community development organi?ation" means an organization, which meets the
membership requirements of subparagraph (2), formed within a city or county or
multicommunity group for one or more of the following purposes:
(a) To promote,.stimulate, develop, and advance the business prosperity and economic
welfare of the community, area, or region and its citizens.
(b) To encourage and assist the location of new business and industry.
(c) To rehabilitate and assist existing business and industry.
(d) To stimulate and assist in the expansion of business activity.
(2) For purposes of this definition, a community development organization must have at
least fifteen members with representation from the following:
(a) A representative from government at the level or levels corresponding to the
community development organization's area of operation.
(b) A representative from a private sector lending institution.
(c) A representative of a community organization in the area.
(d) A representative of bnsiness in the area.
(e) A representative of private citizens in the comm~lnity, area, or region.
b. '2qew construction" means new buildings or structures and includes new buildings or
structures which are constructed as additions to existing buildings or structures. '2qew
construction" also includes reconstruction or renovation of an existing building or
structure which constitutes complete replacement of an existing building or structure or
refitting of an existing building or structure, if the reconstruction or renovation of the
existing building or structure is required due to economic obsolescence, if the
reconstruction or renovation is necessary to implement recogniTed industry standards for
the manufacturing or processing ofproduets, and the reconstruction or renovation is
required in order to competitively manufacture or process products or for community
development organizations, to market a building or structure as a pseculative shell
building, which detenninatiun must receive prior approval from the city council of the
city or county board of supervisors of the county.
c. "Speculative shell building" means a building or structure owned and constructed or
reconstructed by a community development organization without a tenant or buyer for the
purpose of attracting an employer or user which will complete the building to the
employer's or user's specification for manufacturing, processing, or warehousing the
employer's or user's product line.
Sec. 15-60. Exemption Allowed. An exemption from property taxation is hereby
allowed for new construction of shell buildings by community development
organizations, or the portion of the value added to buildings being reconstructed or
renovated by community development organizations in order to become speculative shell
buildings. The exemption or partial exemption shall be effective for the assessment year
in which the building is first assessed for property taxation or the assessment year in
which the reconstruction or renovation first adds value and all subsequent years until the
property is leased or sold or until the exemption is terminated by ordinance of the city
council. Eligibility for an exemption as a speculative shell building shall be determined
as of January 1 of the assessment year. If the shell building or any portion of the shell
building is leased or sold, the portion of the shell building which is leased or sold shall
not be entitled to an exemption under this ordinance for subsequent years. An application
shall be filed pursuant to section 427B.4 for each project for which an exemption is
claimed. Upon the sale of the shell building, the shell building shall be considered new
construction for purposes of Iowa Code section 427B.1 if used for purposes set forth in
section 427B.1.
Sec. 15-61. Application for exemption by property owner. An application shall be
filed for each project resulting in actual value added for which an exemption is claimed.
The application for exemption shall be filed by the owner of the property with the local
assessor by February 1 of the assessment year in which the value added is first assessed
for taxation. Applications for exemption shall be made on forms prescribed by the
director of revenue and shall contain information pertaining to the nature of the
improvement, its cost, and other information deemed necessary by the director of
revenue. A person may submit a proposal to the city council to receive prior approval for
eligibility for a tax exemption on new constmction. The city council, by ordinance, may
give its prior approval of a tax exemption for new construction if the new construction is
in conformance with the zoning plans for the city. The prior approval shall also be
subject to the hearing requirements of Iowa Code section 427B.1. Prior approval does
not entitle the owner to exemption from taxation until the new cortstmction has been
completed and found to be qualified real estate. However, if the tax exemption for new
construction is not approved, the person may submit an amended proposal to the city
council t6 approve or reject.
Section 2. This Ordinance shall take effect upon publication.
Passed, approved and adopted this 15 day of January, 2001.
Attest:
/s/ Jeanne F. Schneider, City Clerk
Terrance M. Duggan, Mayor
CITY OF DUBUQUE, IOWA
MEMORANDUM
January 10, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
DAIDC Speculative Industrial Building
The Dubuque Area Industrial Development Corporation (DAIDC) has built a 40,000 square foot
speculative industrial building in Dubuque Industrial Center West. DAIDC is a private not-for-
profit community development organization. DAIDC is having the building marketed by the
Greater Dubuque Development Corporation (GDDC). Mayor Duggan and I serve on the Board
of Directors of DAIDC.
I respectfully request Mayor and City Council approval of an ordinance that allows this building
to be exempt from property tax.
/ ~
t9lichael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
STATE OF IOWA
DUBUQUE COUNTY
{ SS:
CERTIFICATION OF PUBLICATION
I, T}~MY M~ FELDM^~ a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a
newspaper of general circulation published in the City of Dubuque, County of
Dubuque and State of Iowa; hereby certify that the attached notice was published
in said newspaper on the following dates ,~a n uar~ ~C~
,_)
, 20 (31 , and for which the charge is $ ~}~ ~ 7
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this /?z~' day of C-')c~'~,~'~.?~,~z~' 20 ~/~
Nota~ublic in~and for Dubuqm~ounty. Iowa