Dubuque Industrial Center Urban Renwal Plan_AmendedTHE CITY OF ~ Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Necessity for an Amended and Restated Urban Renewal
Plan for the Dubuque Industrial Center Economic Development District
DATE: January 30, 2008
Economic Development Director Dave Heiar is recommending adoption of a Resolution
of Necessity that begins the process of amending the Urban Renewal Plan for the
Dubuque Industrial Center Economic Development District to expand the district to
include the North Siegert Farm and the rail site. He further recommends that a public
hearing be scheduled for March 3, 2008.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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Dubuque
All-Am~icaCity
January 30, 2008
TO:
Michael Van Milligen, City Manager
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FROM:
SUBJECT
David J. Heiar, Economic Development Director `''``
Resolution of Necessity for an Amended and Restated Urban
Renewal Plan for the Dubuque Industrial Center Economic
Development District
Introduction
This memorandum presents for City Council consideration a Resolution of Necessity
that: 1) finds that the amendment of the 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 March 17, 2008.
The proposed amendment of this district would expand the district to include an area
known as the North Siegert Farm and several adjacent residential properties (See
Attached Map).
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. The original area
included the Dubuque Industrial Center (known as Subarea A) and was expanded in
November 1997 to include the Dubuque Industrial Center West, the County Farm, the
Bergfeld Farm, and the North Siegert Farm (known as Subarea B). On January 7,
2008, the Urban Renewal Plan was amended to remove the North Siegert Farm and an
area known as the Rail Site.
The Iowa Code places a limit of 20 years on the utilization of TIF revenues from
"economic development" urban renewal areas created after January 1995. As
mentioned, the North Siegert Farm and Rail Site were placed in the District when it was
amended in 1997. Since TIF revenue has not been collected or utilized from this portion
of the District, the City recently removed the North Siegert Farm and Rail Site from the
Urban Renewal District. When these parcels were removed from the District, it was
anticipated that at some future date, the City Council could determine to put all or
portions of these parcels back into the District, or into a new urban renewal area, and
give this new subarea its own 20-year period of tax increment collections to assist in job
creation and new development. .
Before a municipality can exercise the authority conferred by Chapter 403 "Urban
Renewal" of the Iowa Code, a Resolution of Necessity must be adopted finding that the
area being considered for urban renewal district designation is either a slum, blighted or
economic development area and that the rehabilitation, conservation, redevelopment,
development, or a combination thereof, of the area is necessary in the interest of the
public health, safety or welfare of the residents of the city.
The Iowa Code defines a blighted area as, "an area of a municipality within which the
local governing body of the municipality determines that the presence of a substantial
number of slum, deteriorated, or deteriorating structures; defective or inadequate street
layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
unsanitary or unsafe conditions; deterioration of site or other improvements; diversity of
ownership, tax or special assessment delinquency exceeding the fair value of the land;
defective or unusual conditions of title; or the existence of conditions which endanger
life or property by fire and other causes; or any combination of these factors;
substantially impairs or arrests the sound growth of a municipality, retards the provision
of housing accommodations, or constitutes an economic or social liability and is a
menace to the public health, safety, or welfare in its present condition and use". An
economic development area is defined as, "an area of a municipality designated by the
local governing body as appropriate for commercial and industrial enterprises or
housing and residential development for low and moderate income families, including
single or multifamily housing." The expansion areas will be designated as economic
development areas.
Discussion
The proposed amendment to the Urban Renewal Plan will expand the District to include
the North Siegert Farm and several adjacent residential properties as a new Subarea C.
This amendment will give the area access to the tools and incentives available to urban
renewal district properties, namely tax increment financing.
I recommend expanding the District and amending the Urban Renewal Plan to include
the North Siegert Farm and adjacent residential properties because demand for
industrial land is expected to continue at its current pace and additional land will be
needed. Also, Hormel has announced they want to construct a new manufacturing
facility on the North Siegert farm.
The North Siegert Farm expansion area will include three houses located along
Pennsylvania Avenue along with the City owned farm land. These property owners
have previously expressed an interest of selling their homes to the City. Including the
residential properties in the District would allow the City to use TIF for purchase of the
houses sometime in the future, should the City and property owners agree upon a
purchase price.
The attached Resolution directs staff to prepare an amendment to the Amended and
Restated Urban Renewal Plan and to forward the amendment to the Long Range
Planning Commission for their review and comment. This is required by Chapter 403
along with a consultation process that involves all affected taxing entities. Those taxing
entities, the County, School Board and Northeast Iowa Community College, have an
opportunity to comment on the proposed amendment prior to the required public
hearing on the urban renewal plan, but they cannot block adoption of the amendment.
City Council public hearing on the amendment to the Amended and Restated Urban
Renewal Plan will be scheduled for March 17, 2008. The public notice will be published
March 7, 2008 to allow for the appropriate reporting requirements. This will allow time
for preparation of the amendment, review and comment period by the Long Range
Planning Commission and the consultation process with the taxing entities.
Recommendation
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 to expand the district to include the North Siegert Farm
and the three residential properties along Pennsylvania Avenue.
The amendment will provide additional tools to encourage reinvestment and
redevelopment activities throughout the District and will support the revitalization within
the area.
Action Step
The action step for the City Council is to adopt the Resolution of Necessity attached to
this memorandum.
Attachments
F:\USERS44dejong\Urban Renewal\Dubuque Industrial Center UR District\2008.2 DIC Urban Renewal Plan\20080130 Necessary
Memo.doc
RESOLUTION NO. 49-08
A RESOLUTION OF NECESSITY FINDING THAT CERTAIN AREAS
ADJACENT TO THE DUBUQUE INDUSTRIAL CENTER ECONOMIC
DEVELOPMENT DISTRICT MEET THE DEFINITION OF AN ECONOMIC
DEVELOPMENT AREA UNDER THE URBAN RENEWAL LAW, AND- THAT
DEVELOPMENT OF SAID AREAS IS NECESSARY IN THE INTEREST OF
THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA.
Whereas, the City Council of the City of Dubuque has heretofore, by Resolution
No. 15-08 adopted on January 7, 2008, 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 the
purposes and objectives of the foregoing Urban Renewal Plan; and
Whereas, the City Council has found that certain areas adjacent to the District
meet the definition of an economic development area as found in Chapter 403 "Urban
Renewal" of the Iowa Code; and
Whereas, Chapter 403 of the Iowa Code 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 following described area, which is proposed to be added to
the Dubuque Industrial Center Economic Development District, is an economic
development area as defined by Chapter 403 of the Iowa Code and is appropriate for
an urban renewal project, to wit:
North Siegert Farm (Subarea C)
Lot 1-1 NW 1/4-NE 1/4; LOT 2 OF E 10 ACRES OF 10 NE 1/4-
NW 1/4; NW 1/4-NE 1/4; Lot 2 NW 1/4-N 1/4; Lot 1 E 1/4 NE 1/4-
NW 1/4; W 3/4 NE 1/4-NW 1/4; Lot 2-1 SE 1/4-NW 1/4; Lot 1-1
SE 1/4-NW 1/4; and the SW 1/4-NE 1/4 all in Section 30,
Township 89 North, Range 2 East, 5th Principal Meridian in the
City of Dubuque, Dubuque County.
Section 2. That the development of the above-described expansion area is
necessary and appropriate to facilitate the proper growth and development of the
community in accordance with sound planning and local community objectives.
Section 3. That the City Manager is authorized and directed to prepare an
amendment to the Amended and Restated Urban Renewal Plan for the Dubuque
Industrial Center Economic Development District for the purpose of including the above-
described area in the District, to forward said amendment to the City's Long Range
Planning Commission for review and comment, and to begin the consultation process
required by law with affected taxing entities.
Section 4. That the City Clerk is directed to publish notice of a public hearing on
the adoption of the proposed amendment to the Amended and Restated Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District to be
held on March 17th, 2008 at 6:30 p.m. in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa 52001 and thpt said notice shall generally identify the areas
covered by the Amended and Restated Plan, the areas proposed to be added to the
District, and the general scope of the urban renewal activities planned for such areas,
and that said notice shall be published and available to the public on March 7"', 2008.
Section 5. That the City Clerk is further directed to send by ordinary mail a copy
of said notice of public hearing and the proposed amendment to the Dubuque
Community School District, the County Board of Supervisors and the Northeast Iowa
Community College, as the affected taxing entities.
PASSED, APPROVED and ADOPTED this 4th day of February, 2008.
Roy D. Buol, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
F:\USERS\Adejong\Urban Renewal\Dubuque Industrial Center UR District\2008.2 DIC Urban Renewal Plan\20080204 Necessary
Resolution.doc
Dubuque Industrial Center
Economic Development District
Version 2008.2
Legend
Subarea A
Subarea B
Subarea C