Kunkel & Associates, Inc. - Urban Revitalization Area Plan_Adoption Copyright 2014
City of Dubuque Action Items # 1.
ITEM TITLE: Kunkel & Associates, Inc. - Urban Revitalization Area Plan
SUMMARY: City Manager recommending approval of the Urban Revitalization Plan for
the Kunkel and Associates Urban Revitalization Area, Lot 6, Block 2 of
Dubuque Technology Park, and the adoption of the ordinance establishing
the Kunkel and Associates Urban Revitalization Area.
RESOLUTION Approving the Adoption of an Urban Revitalization Plan for
the Kunkel & Associates Urban Revitalization Area
ORDINANCE Amending City of Dubuque Code of Ordinances Title 3,
Revenue and Taxation, Chapter 2 Revitalization Areas, by Adopting a New
Section 10 Kunkel and Associates, Establishing the Kunkel and Associates
Urban Revitalization Area, and Establishing Requirements for Qualifying
Property Owners
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s); Receive
and File; Motion B; Motion A
ATTACHMENTS:
Description Type
❑ Kunkel and Associates Urban Revitalization Plan-MVM Memo City Manager Memo
❑ Kunkel Staff Memo Staff Memo
❑ Resolution Resolutions
❑ Ordinance Ordinance
❑ Urban Revitalization Area Plan Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Kunkel and Associates Urban Revitalization Plan and Ordinance
Establishing the Kunkel and Associates Urban Revitalization Area
DATE: January 15, 2015
Economic Development Director Maurice Jones is recommending City Council approval
of the Urban Revitalization Plan for the Kunkel and Associates Urban Revitalization
Area, Lot 6, Block 2 of Dubuque Technology Park, and adopt the ordinance establishing
the Kunkel and Associates Urban Revitalization Area.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:nr
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCity Dubuque,Iowa 52001-4864
D U B34 E1 I Office(563)589-4393
TTY(563)690-6678
http://www.cityofdubuque.org
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Resolution Approving the Kunkel and Associates Urban Revitalization
Plan for the Kunkel and Associates Urban Revitalization Area, Lot 6, Block
2 of Dubuque Technology Park in the City of Dubuque and Adopting an
Ordinance Designating the Kunkel and Associates Urban Revitalization
Area.
DATE: January 15, 2015
Introduction
This memorandum presents an explanation of the steps the City Council has taken to
date, and requests City Council adoption of a resolution approving the Kunkel and
Associates Urban Revitalization Plan and adoption of an Ordinance establishing the
Kunkel and Associates Urban Revitalization Area.
Background
On December 15, 2014 the City Council held a public hearing on a resolution to
approve the Urban Revitalization Plan for the Kunkel and Associates Urban
Revitalization Area. The City Council was requested to delay final action on the
resolution until January 20, 2015 because of the 30-day notice requirement of the urban
revitalization statute, Iowa Code Chapter 404.
Discussion
The City did not receive a petition to hold a second public hearing on the Urban
Revitalization Plan within the 30-day notice period. Therefore, the City Council may
proceed with the adoption of the attached resolution approving the Plan.
The final step in the process will be the adoption of the attached Ordinance establishing
the Kunkel and Associates Urban Revitalization Area.
RECOMMENDATION/ACTION STEP
I recommend that the City Council adopt the resolution approving the Urban
Revitalization Plan for the Kunkel and Associates Urban Revitalization Area. I also
recommend that the City Council adopt the Ordinance establishing the Kunkel and
Associates Urban Revitalization Area.
Prepared by: Anderson Sainci, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
Return to: Anderson Sainci, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 27-15
APPROVING THE ADOPTION OF AN URBAN REVITALIZATION PLAN FOR THE
KUNKEL & ASSOCIATES URBAN REVITALIZATION AREA
Whereas, the City Council of the City of Dubuque (the City), Iowa on October 20,
2014, approved Resolution No. 327-14, a resolution of finding that the economic
development of Lot 6 Block 2 of Dubuque Technology Park in the City of Dubuque,
Iowa, according to the recorded plat thereof known as the Kunkel and Associates Urban
Revitalization Area is necessary in the interest of the welfare of the residents of the City,
and the property meets the criteria for Urban Revitalization as defined in Section 403.17
of the Code of Iowa, 2014, and
Whereas, on November 3, 2014 the City reviewed a proposed Urban Revitalization
Plan (the Plan) for the Kunkel and Associates Urban Revitalization Area, and
scheduled, by Resolution No, 342-14, a public hearing to be held on December 15,
2014 on the proposed adoption of the Plan, and
Whereas the City ordered the City Clerk to publish, at least once, not less than thirty
days prior to the public hearing notice of said hearing in the manner provided in Section
362.3 of the Code of Iowa, and cause notice of said hearing to be given by ordinary mail
at the last known addresses of the owners of record of Lot 6 Block 2 of Dubuque
Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof,
and
Whereas, the City Clerk published the notice of public hearing on November 7,
2014 and gave the notice to the property owners by ordinary mail at least thirty days
prior to the public hearing, and
Whereas, the City has held the required public hearing, and has not received a valid
petition requesting a second public hearing within thirty days after the public hearing
held on December 15, 2014,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
The Urban Revitalization Plan for Lot 6 Block 2 of Dubuque Technology Park in the
City of Dubuque, Iowa, according to the recorded plat thereof, known as the Kunkel and
Associates Urban Revitalization Area is hereby approved. II
Passed and approved this day of 20th Day of January, 2015.
Attest:
..Atir,y10"*".ri
Kevi S. Firnstahl, City Cler
Karla A. jig, Mayor Pro Tern
ORDINANCE NO. 05-15
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 3, REVENUE AND
TAXATION, CHAPTER 2 REVITALIZATION AREAS, BY ADOPTING A NEW
SECTION 10 KUNKEL AND ASSOCIATES, ESTABLISHING THE KUNKEL AND
ASSOCIATES URBAN REVITALIZATION AREA, AND ESTABLISHING
REQUIREMENTS FOR QUALIFYING PROPERTY OWNERS
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. City of Dubuque Code of Ordinances Title 3, Chapter 2 is hereby amended
by adding the following:
3-2-9: Kunkel and Associates:
The area hereinafter described is hereby designated as the Kunkel and Associates
Urban Revitalization Area in accordance with the code of Iowa:
Lot 6 Block 2 of Dubuque Technology Park in the City of Dubuque, Iowa,
according to the recorded plat thereof.
B. The Kunkel and Associates Urban Revitalization Plan as attached to this
ordinance is hereby adopted and approved and the properties within said described
area shall be subject to the provisions of said plan.
C. The Kunkel and Associates Urban Revitalization Plan shall hereafter be on file in
the city clerk's office, City Hall, Dubuque, Iowa.
D. Additional requirements: In order to qualify for the tax abatement program
established in the plan, the property owner must create ten (10) new full-time jobs in the
Kunkel and Associates Urban Revitalization Area within 5 years of approval of the
property owner's application by the City Council for tax abatement. If the property owner
fails to create all such jobs within such five-year period, the property owner must
provide a refund of all taxes abated to the County Treasurer within sixty (60) days after
the end of such 5 -year period for distribution to the governing bodies affected by the
abatement of such taxes in the amount of the lost taxes of each such governing body.
E. Certification: To assist City in monitoring the job creation requirement of Par. D, a
duly authorized officer of the property owner shall certify to City the number of full-time
equivalent jobs employed at the above described property on the fifth anniversary of the
date of approval of the property owner's application for tax abatement.
Section 2. This ordinance takes effect upon publication,
Passed, approved and adopted the 20th day of January, 2015.
Attest:
-ariejned
c`.
Kevitll S. Firnstahl, City
erk
Karla A. Braig/layor Pro Tern
OFFICIAL
PUBLICATION
ORDINANCE NO.5.15'
AMENDING CITY OF
(DUBUQUE CODE OF
ORDINANCES TITLE 3,
REVENUE AND TAX-
ATION, 'CHAPTER 2
REVITALIZATION
AREAS. BV r ADOPTING
A NEW,'SECTION 10
KUNKEL AND ASSO-
CIATES, ESTABLISH-
ING`THE KUNKEL AND
ASSOCIATES. liRBAN
REVITALIZATION
AREA, AND ;:ESTAB-
LISHING REQUIRE-
MENTS FOR 'QUALI-
FYING PROPERTY
OWNERS
NOW, THEREFORE, BE
IT ORDAINED BY THE
CITY COUNCIL OF THE
CITY OF DUBUQUE,
IOWA:
Section 1. City of
Dubuque Code of
Ordinances Title 3,
Chapter 2 is hereby
amended by adding
q the following:
3-2-9: Kunkel and
Associates- -
The area hereinafter,
described is . hereby
designated as the
Kunkel and Associates
Urban Revitalization
Area in accordance
with the code of;'lowa•
Lot 6 Block ` 2 of
Dubuque Technology
Park in the City of
Dubuque, lowa,accord-
ing to the recorded plat' ,,
thereof.�`
B. The Kunkel and
Associates Urban Re-
vitalization 'Plan as
attached to this
ordinance is hereby
•adopted and approved
and the properties.
within said described
area shall be subject to
the provisions of said
plan. 4
C. The Kunkel and
Associates Urbao„ Revi-
talization Plan" 'shall
hereafter be on file in
the city clerk's office,
City Hall, •.Dubuque,
Iowa.
Di, Additional require-
ments: In order to
qualify for the tax
abatement program
established in the plan,
the , property owner>;.
must create ten (10)
new full-time jobs in,
the Kunkel and,
Associates Urban Revi-
talization Area within 5
`years of approval of
the property owner's
application by the City
Council for tax
abatement. If the pro
C perty owner fails to
create '''all such jobs
within, such five-year
period, the property,
owner must provide a
refund of all ,:taxes
abated to the County
Treasurer within sixty
(60) days after the end
of such -5 -year period
for distribution to the
governing bodies af-
fected by the
abatement of such
taxes in the amount of
the lost taxes of each
Such governing body.
E, Certification: ° To
assist City .in
monitoring the job
creation requirement
of Par. ` D, a duly
authorized officer of I
the property owner
shall certify to City.the
number of full-time
equivalent jobs em- ,
ployed ,at the above I
described` property on 1
the fifth`anniversary of
the date of approval of
the property owner's
application •for tax
abatement.
Section 2. This
ordinance takes effect
upon publication,,
Passed, approved and
adopted the 20th day
of January, 2015.
/s/Roy D. Buol, Mayor i
Attest: /s/Kevin S.
Firnstahl, City Clerk
Published officially in "'I
the Telegraph Herald
newspaper on the 23rd
day of January, 2015.
/s/ Kevin S. Firnstahl,
City Clerk
it 1/23
CERTIFICATION OF PUBLICATION
1, Suzanne Pike, 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: January 23, 2015, and for which the charge is $28.56.
Subscribed to before m-viL Notary Public in and for Dubuque County, Iowa,
this 774-1 clay of ‘., , 20 /5
• _
°Notary Public in and for Dubuque County, Iowa.
ARY K. WESTERMEYER
Commission Number 154885
My Comm, Exp. FEB, 1, 2017
„,,
Kunkel & Associates
Urban Revitalization Area Plan
November 3, 2014
Introduction:
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404 (the "Act"),
authorizes cities to designate one or more areas of the City as a revitalization area, with
the goal of increasing or stabilizing the local tax base by encouraging new construction
which might otherwise not occur. Improvements to qualified real estate with these
designated areas may then become eligible for an exemption from property taxes for a
specified numbers of years. To implement the provisions of the Act, the City must
prepare a revitalization plan for each designated area.
This document is the plan addressing the requirements of the Act for an area to be
known as the "Kunkel & Associates Urban Revitalization Area".
Area eligibility criteria:
The area described below meets the criteria for designation, specifically Section
404.1 (4) of the Code of Iowa, and constitutes "an area which is appropriate as an
economic development area" as defined in Section 403.17 of the Code of Iowa.
Objectives:
This Plan was prepared in conformance with Sections 404.1 and 404.2 of the Act for the
purpose of providing incentives and outlining procedures to enhance the potential for
commercial development in the Kunkel & Associates Urban Revitalization Area. The
primary objectives of this Plan are as follows:
• Encouraging new construction of commercial properties through the
abatement of taxes on the value of the improvements constructed.
• Improving economic conditions in the City by creating new commercial
development opportunities and taking steps to increase the tax base.
• Assisting businesses in the area in their expansion activities and creating new
jobs which will support the Council's objective to assist business expansion
and to create new jobs.
Legal description:
The property to be included in the Kunkel & Associates Urban Revitalization Area is
located in the Dubuque Technology Park, and is legally described as:
Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according
to the recorded plat thereof.
A map of the area boundaries is attached as Exhibit A.
Current assessed value:
The current assessed valuation of the Area, which is the property described above, as
of August 13, 2014, is $1 ,739,960, which is $1 ,343,860 for the improvements and
$396,100 for the land.
Property ownership:
The current property owner within the Area, as of August 13, 2014 is KBA Properties,
LLC, 401 Data Court Dubuque, IA 52003.
Existing and Proposed Land Use and Zoning Classification:
The existing and future land use for the property located within the Area is Office (OF).
City Services:
The City is not proposing to extend any City services to the Area that are not already
provided.
Relocation:
No relocation will occur due to the redevelopment of the Area. There are currently no
residents located in the Area and no resident or business will be forced to leave due to
potential redevelopment of the Area.
Eligible Improvements:
Eligible improvements are limited to new construction of commercial structures on
vacant land within the Area. All new construction, in order to be considered eligible,
must be completed in conformance with all applicable regulations of the City of
Dubuque. No abatement will be allowed unless a building permit has been issued by
the City with respect to the project for which the abatement is requested.
Actual value added by improvements means the actual value added as of the first year
for which the exemption was received according to tax assessment valuation
determined by the Dubuque County Assessor.
Exemptions:
Applicants for commercial tax abatements will select the following option:
Option 1 : All commercial and/or industrial real estate is eligible to receive a partial
exemption from taxation on the actual value added by the improvements. The
exemption is for a period of ten (10) years. The amount of the partial exemption is
equal to a percent of the actual value added by the improvements, determined as
follows:
A. For the first year, eighty percent (80%).
B. For the second year, seventy percent (70%).
C. For the third year, sixty percent (60%).
D. For the fourth year, fifty percent (50%).
E. For the fifth year, forty percent (40%).
F. For the sixth year, forty percent (40%).
G. For the seventh year, thirty percent (30%).
H. For the eighth year, thirty percent (30%).
I. For the ninth year, twenty percent (20%).
J. For the tenth year, twenty percent (20%).
Application Procedures:
An application must be filed for each new exemption claimed. The property owner must
apply to the City for an exemption by February 1 sc of the assessment year for which the
exemption is first claimed. The application must contain, but not be limited to, the
following information: a description of the proposed new construction project, its cost,
and the estimated or actual date of completion of the new construction. All applications
must be on the form of application provided by the City.
Approval of Applications:
Owners may submit a proposal for a new commercial construction project to the City
Council to receive prior approval for eligibility for a tax exemption on the project. The
City Council must give its prior approval if the project is in conformance with this Plan
for revitalization. However, if the proposal is not approved, the owner(s) may submit an
amended proposal for the City Council to approve or reject. Such prior approval will not
entitle the owner(s) to exemption from taxation until the new construction has been
completed and found to be qualified for the exemption.
For prior approval and non-prior approval applications, the City Council must approve
an application submitted for approval if:
The project, as determined by the City Council, is in conformance with this Plan;
The project is located within the Urban Revitalization Area;
The improvements were made during the time the Urban Revitalization Area was
so designated;
The project has obtained a building permit from the City; and
Any other legal requirement.
All approved applications must be forwarded by the City to the Dubuque City Assessor
by March 1 for review, and a final determination of eligibility by the Assessor, pursuant
to Section 404.5 of the Code of Iowa. The City Assessor must make a physical review
of all properties with approved applications. The City Assessor must determine the
increase in actual value for tax purposes due to the new construction and notify the
applicant of the determination, which may be appealed to the local board of review
pursuant to Section 441 .37 of the Code of Iowa. After the initial tax exemption is
granted, the City Assessor must continue to grant the tax exemption for the time period
specified on the approved application. The tax exemptions for the succeeding years will
be granted without the owner(s) having to file an application for succeeding years.
Other Sources of Revitalization Funds:
The City anticipates making application to the Iowa Economic Development Authority
for state financial assistance to assist Kunkel and Associates, Inc. in an expansion.
Revenue Bonds:
The City has no plans at the present time to issue revenue bonds for revitalization
projects within the Area.
Conclusion
The incentives provided within the Area are intended to assist Kunkel & Associates with
an expansion of the company's current facility beginning in 2015.
The company plans to create eighteen (18) full time jobs within three years. This will
support the City Council's objective to assist business expansion and to create new
jobs.
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