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Urban Revit Tax Exempt AppsCITY OF DUBUQUE, IOWA MEMORANDUM February 15, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Calendar Year 2001 Urban Revitalization Program Applications Acting Corrmmnity and Economic Development Director Pam Myhre is recommending approval of the eligible tax exemption applications that have been filed as part of the 2001 Urban Revitalization Program. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager Pamela Myhre, Acting Community and Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM TO: FROM: SUB J: February 13, 2001 Michael C. Van Mill~ and onom D velopment Director Calendar year 2~01 Urban Revitalization Program Applications INTRODUCTION This memorandum presents for City Council consideration the following resolutions related to the 2001 applications for residential property tax exemption: 1. Resolution approving timely residential property tax exemption applications filed in accordance with the Urban Revitalization ordinance and directing that the approved applications be forwarded to the City Assessor. 2. Resolution approving late-filed residential property tax exemption applications filed in accordance with the Urban Revitalization ordinance and directing that the approved applications be forwarded to the City Assessor. BACKGROUND In 1980, the City Council established, under the guidelines set forth in Chapter 404 of the Code of Iowa, Dubuque's first two Urban Revitalization Areas - Jackson Park Urban Revitalization Area and W. 11a' Street Urban Revitalization Area. In 1981, the City designated the Washington Street Urban Revitalization Area and in 1995, designated the Upper Main Urban Revitalization Area. The Garfield Place Urban Revitalization Area was designated as an Urban Revitalization Area in 2000. The Stout Place (Iowa Inn) area was designated in 1998, and the Council will hold a Public Hearing on March 5, 2001 to extend the duration of this Urban Revitalization area past 2001. Additionally, a number of other small areas have been designated over the years, but these designations have expired. The purpose of the Urban Revitalization legislation is to attract development to specific areas, which might otherwise continue to deteriorate, thereby stabilizing and eventually increasing the tax base within those areas. The exemptions are intended to stimulate private investment by reducing the tax increases that would normally result fi-om makIng improvements to residential property. Process Applications for tax exemption are accepted until February 1 of each year. The Community and Economic Development Department reviews applications to ensure properties are located in a designated area. The Building Services and/or the Housing Services Department then completes an inspection of the property to determine if the improvements have been completed and are in general conformance with the area plan. Applications are presented to the City Council for consideration. If the City Council finds them to be in compliance with the appropriate urban revitalization plan, they are forwarded to the City Assessor who inspects the properties, determines the assessable value of the new improvements and transmits this information to the County Auditor. Applications must be received by the City Assessor by March 1 to receive the tax abatement. The tax exemption is for a period of 10 years and represents 100% of the assessed valuation added by the qualifying improvements. Late filing In 1994, each Urban Revitalization Area Plan was amended to include a provision which permits the City Council to accept applications for improvements made in prior years, providing the improvements are in general conformance with the plan. The property is eligible for property tax exemption as above, but for only the remainder of the 10 year exemption period which began with the initial assessment year. DISCUSSION On or before February 1, 2001, a total of 14 applications were received. Of these 14 applications, 12 were timely applications, 2 were applications for prior years. One timely application upon review by Housing Services was determined not to conform with the Urban Revitalization Area Plan. RECOMMENDATION I recommend that all eligible applications as included in the attached resolutions be approved and forwarded to the City Assessor for final review and determination of the amount of property tax exemption. ACTION STEP The Action Step is for the City Council to receive and file eligible tax exemption applications and this staff report and adopt the attached resolutions. Prepared by: Jerelyn O'Connor, Neighborhood Development Specialist RESOLUTION NO. 50-01 RESOLUTION APPROVING RESIDENTIAL PROPERTY TAX EXEMPTION APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to exempt property taxes for improvements made to properties in designated revitalization areas; and Whereas, the Urban Revitalization Act requires property owners to submit a written application for exemption by February 1 of the assessment year for which the exemption is first claimed, and further requires the City Council to approve all applications that meet the requirements of the adopted Urban Revitalization Plan and forward the approved applications to the City Assessor for review by March 1 of each year; and Whereas, pursuant to the requirements of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Jackson Park, Washington Street, West 1 lth Street, Upper Main Street, and Garfield Place; and Whereas, the City Clerk of the City of Dubuque, as of February 1, 2001, received tax exemption applications from the following property owners in the aforementioned urban revitalization district: West 11th Street Urban Revitalization Area. Old Main Properties/Steven Gudenkauf, 1353 Bluff Street David and Joyce Banfield, 975 Center Place Pablo and Julie Ramirez, 1509-1511 Bluff Street Eck Real Estate, 1535-1537 Bluff Street Gail Yunk, 559 Chestnut Peter and Angela Eck, 646-652 W. 11th Street Peter and Angela Eck, 440 Loras Boulevard Washington Street Urban Revitalization Area Roger C. Welbes, 1946 Jackson Street Patricia Ginter, 1559 Washington Street Upper Main Urban Revitalization Area Kenneth J Moore and Linda L. Moore, 1199 Central Avenue Garfield Place Scott A. Porter, 511 Garfield Avenue Whereas, the Community and Economic Development Department, the Building Services and/or the Housing Services Division have reviewed the above-described applications and inspected the properties, and have determined that the applications and the improvements conform to all requir~nents of the City of Dubuque's Urban Revitalization Plan. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the above-described tax exemption applications meet the requirements of the City of Dubuque's Urban Revitalization Plan. Section 2. That the above-described tax exemption applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. Section 3. That the City Clerk is hereby author/zed and directed to forward the above- described tax exemption applications to the City Assessor. Passed, approved and adopted this 19 day of February, 2001. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk RESOLUTION NO. 51-01 RESOLUTION APPROVE3IG LATE FILED RESIDENTIAL PROPERTY TAX EXEMPTION APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF ]'H ~; APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to exempt property taxes for improvements made to properties in designated revitalization areas; and Whereas, the Urban Revitalization Act requires property owners to submit a written application for exemption by February 1 of the assessment year for which the exemption is fkst claimed, yet provides for the acceptance, by Resolution of the City Council, of applications filed beyond the legislated deadline and further requires the City Council to approve all applications that meet the requirements of the adopted Urban Revitalization Plan and forward the approved applications to the City Assessor for review by March 1 of each year; and Whereas, pursuant to the requirmnents of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Jackson Park, Washington Street, West 1 lth Street and Upper Main Street; and Whereas, the City Clerk of the City of Dubuque, as of February 1,2001, received tax exemption applications for improvements made in previous years from the following property owners in the aforementioned urban revitalization districts: West 1 tth Street Urban Revitalization Area Gloria Ede, 640 W. I 1t~ Street Gail Yunk, 559 Chestnut Street YEAR 1998 1998 Whereas, the Community and Economic Development Department and the Building Services and/or the Housing Services Division have reviewed the above-described applications and inspected the properties, and have determined that the applications and the improvements conform to all requirements of the City of Dubuque's Urban Revitalization Plan. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the above-described tax exemption applications meet the requirements of the City of Dubuque's Urban Revitalization Plan. Section 2. That the above-described tax exemption applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. Section 3. That the City Clerk is hereby authorized and directed to forward the above-described tax exemption applications to the City Assessor. Passed, alyproved and adopted this 19 dayofFebruary, 2001. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk