Loading...
Industrial Center Urban Renewal - Resolution of Necessity_Initiate Copyright 2014 City of Dubuque Items to be set for Public Hearing # 3. ITEM TITLE: Industrial Center Urban Renewal - Resolution of Necessity SUMMARY: City Manager recommending approval of a Resolution of Necessity that finds that an Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District is both necessary and appropriate and sets a public hearing on the proposed amendment for June 1 , 2015. RESOLUTION of Necessity finding that certain areas adjacent to the established Dubuque Industrial Center Economic Development District meet the definition of an Economic Development Area under the Urban Renewal Law, that development of said Area Is Necessary In The Interest Of The Residents Of The City Of Dubuque, Iowa, and setting dates of hearing and consultation on a proposed amendment to the Amended and Restated Urban Renewal Plan for said District. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for 6/1/15 ATTACHMENTS: Description Type ❑ Industrial Center Urban Renewal Resolution of Necessity-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Joint Agreement Supporting Documentation ❑ Attachment A-Proposed Subarea F Map Supporting Documentation ❑ Resolution of Necessity-DICW Resolutions 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: Resolution of Necessity for Amendment of the Dubuque Industrial Center Economic Development District Urban Renewal Plan DATE: April 15, 2015 Economic Development Director Maurice Jones recommends City Council approval of a Resolution of Necessity that finds that an Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District is both necessary and appropriate and sets a public hearing on the proposed amendment for June 1, 2015. 1 concur with the recommendation and respectfully request Mayor and City Council approval. Micliael C. Van Milligen MCVM:jh 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 DUB3 E1 ' Office(563)589-4393 TTY(563)690-6678 http://www.cityofdubuque.org Masterpiece on the Mississippi 200.2012.2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Resolution of Necessity for the Amendment of the Dubuque Industrial Center Economic Development District Urban Renewal Plan DATE: April 14, 2015 INTRODUCTION This memorandum presents for City Council consideration a Resolution of Necessity that finds that: 1) an Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District is both necessary and appropriate; and 2) sets a public hearing on the proposed amendment for June 1, 2015. The proposed amendment of this district would expand the District to include an area known as the Graf Farm and referred to as the new Subarea F. BACKGROUND The Dubuque Industrial Center Economic Development District was created on May 2, 1988. The District is an urban renewal area which allows the City of Dubuque to capture tax increment revenue from improvements made in the District in order to promote economic development activities. The original area included the Dubuque Industrial Center (known as Subarea A) and has been expanded several times over the past several decades to include the Dubuque Industrial Center West, the County Farm, the Bergfeld Farm, the North Siegert Farm, the Rail Site, and the South Siegert Farm (known as Subareas B, C, D, and E, collectively). In 1995, the Mayor and City Council adopted the first Comprehensive Plan for the City of Dubuque since the previously adopted 1936 Comprehensive Plan. This was the culmination of five years of work by the newly formed Long Range Planning Commission chaired by Dave Rusk. The process began in 1990 with the Vision 2000 document, adopted in 1993, and culminated in the adoption of the 1995 Comprehensive Plan. Thousands of citizens participated in this process. The 1995 Comprehensive Plan was updated in 2002, 2008, and 2012.The need to expand and amend the Dubuque Industrial Center Economic Development District has risen from the desire to support expansion of business in the years to come, as many of the current parcels have been developed. Pursuant to House File 2460, the amended plan will describe the specific use of tax increment funds, reflecting the utilization of tax rebates, the creation of public infrastructure, or other planned expenditures. DISCUSSION This proposed expansion and amendment of the Dubuque Industrial Center Economic Development District would result in the addition of approximately 166 acres of land that currently lies just to the west of Subarea B. The Dubuque Comprehensive Plan includes the following: "LAND USE & URBAN DESIGN GOALS Goal Three: To provide sufficient opportunities for industrial development sites within the community. Objectives: 3.1 promote the retention and expansion of existing, and attraction of new, industrial development opportunities in suitable locations, . . . 3.3 encourage annexation of land suitable for industrial usage if necessary ECONOMIC DEVELOPMENT GOALS Goal One: To reduce unemployment, achieve economic stability, and increase the standard of living for all citizens. Objective 1 .2 promote diversification of the commercial/industrial base. Goal Twelve: To promote the provision of an adequate supply of vacant, development- ready land for commercial and industrial use. Objectives 12.3 evaluate potential commercial and industrial development sites, based on the city's future land use map 12.6 consider annexing growth areas, as necessary and as possible, to ensure adequate supply of developable land and to control development on the city's fringe." Acquisition of additional industrial park land is consistent with the Mayor and City Council 5-year goals, which includes Planned and Managed Growth, and Sustainability. One of the three pillars of Sustainability is Economic Prosperity. Included in the twelve principles of Sustainability are Support for Community Design and the Regional Economy. The priorities established by the City Council include Annexation and this acquisition will bring 166 acres into the City. Included by the City Council in the Management Agenda is industrial park expansion, including acquisition and infrastructure. The City of Dubuque has had tremendous success with economic development receiving multiple national recognitions for job creation. This is in no small part to the City's decision in the mid 1990's to acquire and develop over 900 acres of property to provide a 20-year supply of industrial park land. These 900 acres are now called Dubuque Technology Park, Dubuque Industrial Center West, Dubuque Industrial Center North and Dubuque Industrial Center South. It should not be forgotten that preceding the City's efforts was the development in the 1980's of the Dubuque Industrial Center by Dubuque Initiatives. These industrial parks now are home to 49 businesses employing over 4,400 people. These businesses have constructed 4 million square feet of buildings and invested well over $200 million. None of this would have been possible without the City's partnerships with Dubuque Initiatives, the Greater Dubuque Development Corporation, Dubuque County (who donated the County Farm to this effort) and supports the use of Tax Increment Financing to make these projects work), the Dubuque Community School District and Northeast Iowa Community College, who have also supported the use of Tax Increment Financing, the Greater Dubuque Development Corporation, federal and state funding, the many property owners who have cooperated in selling their land, and, most importantly, the businesses who have chosen to make Dubuque their home. In December 2014, there were 61 ,700 people working in Dubuque County with a 3.9% unemployment rate. This is 1 ,800 net new jobs over December 2013. Compare this is the lows of the 1980's, over 24% unemployment, 38,600 people working in Dubuque County. With just 3% of Iowa's population, from 2009-2013, Dubuque County achieved 8.1 % of the state's job growth. The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in 2013, an increase of 30% that exceeded inflation by 17.5%. Between 2000 and 2013, Dubuque's per capita income rose by 40%, exceeding the national growth by 3.5%. In 2000, Dubuque's Median Household Income (MHI) ($39,582) was 6% below the national MHI ($41 ,994). In 2012, Dubuque's MHI ($50,885) was just 1 % below the national MHI ($51 ,017). Between 2008 and 2013, the average home price in Dubuque grew by 9.71 %, more than Sioux City (8.83%), Waterloo (6.28%), Iowa City (5.32%), the Quad Cities (3.93%), Cedar Rapids (1 .33%), Council Bluffs (1 .02%), Des MoinesM/est Des Moines (-0.50%), Chicago (-18.56%), Daytona Beach (-24.08%) and the national average (-0.15%) The City is greatly appreciative of the cooperation of the Graf family in this acquisition process. The City will be acquiring 166 acres of land, just west of the existing industrial parks. Once developed, this will provide approximately 80 acres of buildable land, depending on access and grading plans. The purchase price is $2,078,750 or $12,500 per acre. The estimated site development costs are $7.4 million. The total costs per developable acre when fully developed is estimated at $120,000. This compares favorably with the asking price of$120,000 per acre for current industrial park property. The City previously issued debt using Dubuque Industrial Center Urban Renewal District Tax Increment Financing revenues to fund this purchase.On April 13, 2015 the County Board of Supervisors approved entering into a Joint Agreement with the City for the Dubuque Industrial Center Economic Development District. This agreement is consent from the County for the City to exercise Urban Renewal authority in the portion of the Area that is outside, but within two miles of, City limits. This meets the requirements of Iowa Code Chapter 403.17(4). The agreement is attached for City Council approval. The attached Resolution directs staff to prepare an Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District, setting forth the urban renewal projects that are currently expected to be undertaken in the District. Additionally, staff is required to hold a consultation process, required by law, with the affected taxing entities concerning the proposed amendment, and to the extent the amendment includes the use of tax increment revenues for a public building, provide an analysis of alternative development and funding options for such public buildings. A City Council public hearing on the Amended and Restated Urban Renewal Plan will be scheduled for June 1 , 2015. The public notice will be published four to twenty days before the meeting to allow for the appropriate publication requirements. This will allow time for preparation of the Plan and the consultation process with the taxing entities. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached Resolution of Necessity that begins the process of amending the Urban Renewal Plan for the Dubuque Industrial Center Economic Development District and authorizes entering into a Joint Agreement with the County for the City to exercise urban renewal authority outside city limits. The amendment will provide the continued use of tools that will encourage reinvestment and redevelopment activities throughout the District and will support the revitalization within the area. Attachment JOINT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE COUNTY, IOWA WHEREAS, the City Council of the City of Dubuque, Iowa (the City) desires to amend an urban renewal area known as the Dubuque Industrial Center Economic Development District to include property located within two (2) miles of, but outside the corporate limits of, the City of Dubuque, for the purpose of undertaking an urban renewal project; and WHEREAS, the Board of Supervisors of Dubuque County, Iowa (the County) has reviewed the proposed amendment to the Urban Renewal Area Plan for said area, described therein as the Dubuque Industrial Center Economic Development District (the District), and has determined that the creation of the area and completion of the projects proposed in the District are in the best interests of Dubuque County; and WHEREAS, because a portion of the land proposed to be added is outside the corporate limits of the City of Dubuque, Iowa Code Section 403.17(4) requires a joint agreement between the City and the County before the City can proceed with said projects. NOW THEREFORE, DUBUQUE COUNTY, IOWA AND THE CITY OF DUBUQUE, IOWA AGREE AS FOLLOWS: 1. The Board of Supervisors of Dubuque County hereby consents to, agrees, and authorizes the City to proceed with the amendment of the Dubuque Industrial Center Economic Development District, as described in the amended Urban Renewal Plan for the District and as the same may be further amended from time to time, and the undertaking of urban renewal projects within said area. 2. This Joint Agreement is intended to meet the requirements of Iowa Code Section 403.17(4) with respect to the establishment of an urban renewal area in Dubuque County, Iowa, to include land within two (2) miles of, but outside the corporate limits of, the City of Dubuque, Iowa. 3. This Joint Agreement has been duly authorized by the governing bodies of Dubuque County and the City of Dubuque. DUBUQUE COUNTY, IOWA Chairperp , Board of Supervisors 033115bal STATE OF IOWA ) COUNTY OF DUBUQUE ) ATTEST: By: Aott.A.,.., ss Mona Manternach, Deputy County Auditor On this 23 day of , 2015, before me a Notary Public in and for the State of Iowa, personally appeared /4 i / / and "1-41a "',4,me personally known, who being duly sworn did say that they are the Chairperson of the Board of Supervisors and Auditor, respectively, of Dubuque County, State of Iowa, a political subdivision, and that the seal affixed to the foregoing instrument is the seal of said political subdivision, and that said instrument was signed and sealed on behalf of said political subdivision by authority and resolution of its Board of Supervisors and said Chairperson and Auditor acknowledged said instrument to be the free act and deed of said political subdivision by it voluntarily executed. STATE OF IOWA ss COUNTY OF DUBUQUE ) Notary Public in and for c6, -/-/---t)- 9 County, Iowa CITY OF DUBUK ///J � By: ,r I MARY ANN SPECHT QWAssion Number 153503 My Comm. Exp.; t- 13 142 Ikey D. Buel er Karla A. Braig, Mayor Pro Tem ATTEST: By: K -vin S. Firnstah, City Clerk On this 20thday of April , 2015, before me a Notary Public in and for said County, personally appeared Karla A. Braig and Kevin S. Firnstahlto me personally known, who being duly sworn, did say that 2 * they are the MayeFand City Clerk, respectively, of the City of Dubuque, State of Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed * Mayor Pro Tem m Notary Public in Can for )I l County, Iowa 3 PAMELA J. McCARRON Commission'Nu.'mber 772419 My Comm. Exp. '4-5-- nln. RESOLUTION NO. 131-15 A RESOLUTION OF NECESSITY FINDING THAT CERTAIN AREAS ADJACENT TO THE ESTABLISHED DUBUQUE INDUSTRIAL CENTER ECONOMIC DEVELOPMENT DISTRICT MEET THE DEFINITION OF AN ECONOMIC DEVELOPMENT AREA UNDER THE URBAN RENEWAL LAW, THAT DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AND SETTING DATES OF HEARING AND CONSULTATION ON A PROPOSED AMENDMENT TO THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR SAID DISTRICT. Whereas, the City Council of the City of Dubuque has heretofore, by Resolution 171-13, adopted June 3rd, 2013, approved the Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District (the "District") in order to provide redevelopment opportunities which will further economic development purposes and objectives as described in the Urban Renewal Plan; and Whereas, the City Council has found that the area adjacent to the District shown as Subarea F in Exhibit A attached hereto meets the definition of an economic development area as found in Chapter 403 of the Iowa Code and should be included therein; and Whereas, Subarea F is located within two miles of, but outside the corporate limits of, the City of Dubuque, for the purpose of undertaking an urban renewal project; and Whereas, Iowa Code Section 403.17(4) requires the consent of Dubuque County before the City can proceed with the expansion of said District; and Whereas, the Board of Supervisors of Dubuque County, Iowa has determined to consent to the expansion of the District as so proposed in a Joint Agreement between the parties attached hereto; and Whereas, Iowa Code Chapter 403 requires that before urban renewal authority may be exercised, a City Council must adopt a resolution of necessity finding that the area in question is a slum, blighted or economic development area, and that so designating such area is necessary in the interest of the public health, safety or welfare of the residents of the municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Subarea F is an economic development area as defined by Iowa Code Chapter 403 and is appropriate for an urban renewal project. Section 2. That the City Manager is authorized and directed to prepare an amendment to the Urban Renewal Plan for the Dubuque Industrial Center Economic Development District, such amendment to include Subarea F within the District and such other modifications to the property contained within the District as may be appropriate, and setting forth the urban renewal projects that are currently expected to be undertaken in the District. Section 3. That the City Manager is further authorized to determine an appropriate date for and conduct the consultation process required by law with affected taxing entities concerning the proposed amendment. Section 4. That the City Council hold a public hearing on the adoption of the proposed Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District on June 1st, 2015 at 6:30p.m. in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa 52001. The notice of said hearing shall generally identify the area to be covered by the Amended and Restated Urban Renewal Plan and the scope of the urban renewal project activities planned for such area, and said notice shall be published and available to the public not less than four days nor more than twenty days before the date of said meeting. A copy of the notice of public hearing shall be sent by ordinary mail to the affected taxing entities. Section 5. That the Mayor is authorized and directed to sign the Joint Agreement between the County and the City. Section 6. That the City Clerk is further directed to send by ordinary mail a copy of said Amended and Restated Urban Renewal Plan, the notice of public hearing, and, to the extent the amendment includes the use of tax increment revenues for a public building, an analysis of alternative development and funding options for such public buildings, to the Dubuque Community School District and the County Board of Supervisors, as the affected taxing entities. PASSED, APPROVED and ADOPTED this 20th day of Apr'I, 2015. kali- et. a Kdrla A. Braig, Mayor Pro T, ATTEST: Kevin irnstahl, City Clerk Attach nt //([/`" `rAW NEE LNy[I O / 0` CPMa WOLFF RO / NrIO—WAR V ,I x o 3 „ FMBASSYR ,bubuque IndustriatCer�t " ba enewalADiS �. �' _ p, a /� i �� , WEST MPR80R 0 _ , 1 w r' R NWESTRROOkO i. = ✓ rA COMMERCE j srro � w FA � OP y �ONPD p19VENE!!E RU �. m III d_✓�. �/ - 00 ' rria_ � �OONIGNWPY 0.01 �. � -. . g✓ SEIPPE R L f / s SubareaA Subarea B Subarea C COTfINGHPM RD / J Subarea D Subarea E Subarea F r./ Du asaoismc Develp nubanRe wal D�nnr OvbvgvemdvnralCen zor r1 s�ddd�.akaer lu ��[. ��NE pALLEY DR 7I.