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Urban Revitalization 2007 Applications Dubuque THE CTTY OE --~.. ~~~ E AA-ar~icaCiry Masterpiece on the Mississippi ~ ~ ~' ~. ~~ Zoa~ TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Calendar Year 2007 Urban Revitalization Program Applications DATE: February 13, 2008 Housing and Community Development Department Director David Harris is recommending approval of a resolution related to the Calendar Year 2007 applications for residential property tax exemption. This resolution approves the timely residential property tax exemption applications filed in accordance with the Urban Revitalization Ordinance and directs that the approved application be forwarded to the City Assessor. I concur with the recommendation and respectfully request Mayor and City Council approval. '~;- Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director Dubuque THE CITY OF ~~,,,. ~~~ ~, All-AmericaCity Masterpic~c~ vn the Mississippi zoos TO: Michael C. Van Milligen, City Manager FROM: David Harris, Housing and Community Development Department SUBJECT: Calendar Year 2007 Urban Revitalization Program Applications DATE: February 12, 2008 INTRODUCTION This memorandum presents for City Council consideration the following resolution related to the calendar year 2007 applications for residential property tax exemption. The resolution approves the timely residential property tax exemption applications filed in accordance with the Urban Revitalization ordinance and directs 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 West 11th Street Urban Revitalization Area. In 1981, the City designated the Washington Street Urban Revitalization Area and amended the district in 2007. In 1995, the Upper Main Urban Revitalization Area was designated and in 2002 the Langworthy, Old Main and Cathedral Urban Revitalization areas were designated. The Garfield Place Urban Revitalization Area was approved in 2000, amended in June 2002 and amended again in February 2004.The Manasseh House Urban Revitalization was approved in February 2006. Additionally, a number of other small areas have been designated over the years, but these designations have primarily 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 from making improvements to residential property. Process Applications for tax exemption are accepted until February 1 of each year. The Housing and Community Development Department reviews applications to ensure properties are located in a designated area. Staff from Building Services and Housing and Community Development have completed an inspection of each property to determine if the improvements have been completed, are in general conformance with the area plan, and appropriate permits have been obtained, if necessary. 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. The City Assessor must receive applications by March 1 to approve the tax abatement. DISCUSSION The residential tax exemption is for a period of 10 years and represents 100% of the assessed valuation added by the qualifying improvements. Sixteen residential applications were received but one application was denied as no building permits were received. The Washington Neighborhood Urban Revitalization district was revised and the boundaries expanded in March 2007. In addition to the ten year residential abatement on improvements, this district also allows a three year abatement for commercial buildings. Two commercial UR applications were received. The following 17 applications were reviewed and approved: Washinaton Neiahborhood Urban Revitalization Area 2108 Washington- Betty Griffin 1543 Washington- Roger Richards 1636 Jackson- Skyline Properties 1646 Jackson- Skyline Properties 1845 Washington- Michael Armstrong (Commercial) 2175 Central- National Retail Property (Commercial) West 11th Street Urban Revitalization Area 550 Arlington- Robert Johnson and Bethany Golombeski 535 Chestnut -Don & Lisa Leik 570 Arlington -Brad Parks 485 Arlington -Chad & Laura Witthoeft 1010/1012 Wilson -Joseph Healy 633 West 16th Street -David & Bridget Stipanovich 1323 & 1325 Bluff Street- David Luchsinger & Susan Kearns 970 Grove Terrace -Mike & Suzanne Blouin Jackson Park Urban Revitalization Area 1433 Main - Scottt Hendron (2007 improvements only) 135 West 17th Street -Robert McDonnell & Timothy Coonley Langworthy Urban Revitalization Area 265 Alpine- Julie Lott RECOMMENDATION I recommend that all eligible applications included in the attached resolution 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 resolution. Prepared by Aggie Tauke, Community Development Specialist F:\Users\ATAUKE1Urban Revite\Annual Apps\Council URApplication memo.doc RESOLUTION NO. 57-08 RESOLUTION APPROVING 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: Washington Neighborhood, Jackson Park, West 11th Street, and Langworthy; and Whereas, the City of Dubuque, as of February 1, 2008, received tax exemption applications from the following property owners in the aforementioned urban revitalization district. Washington Neighborhood Urban Revitalization Area 2108 Washington- Betty Griffin 1543 Washington- Roger Richards 1636 Jackson- Skyline Properties 1646 Jackson- Skyline Properties 1845 Washington- Michael Armstrong (Commercial) 2175 Central- National Retail Property (Commercial) West 11th Street Urban Revitalization Area 550 Arlington- Robert Johnson and Bethany Golombeski 535 Chestnut -Don & Lisa Leik 570 Arlington -Brad Parks 485 Arlington -Chad & Laura Witthoeft 1010/1012 Wilson -Joseph Healy 633 West 16th Street -David & Bridget Stipanovich 1323 & 1325 Bluff Street- David Luchsinger & Susan Kearns 970 Grove Terrace -Mike & Suzanne Blouin Jackson Park Urban Revitalization Area 1433 Main - Scottt Hendron (2007 improvements only) 135 West 17th Street -Robert McDonnell & Timothy Coonley Langworthy Urban Revitalization Area 265 Alpine- Julie Lott Whereas, the Housing and Community Development Department and Building Services 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 Plans. 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, approved and adopted this 18th day of February Roy M. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk F:\Users\ATAUKE\Urban Revite\Annual Apps\UrbanRevitRes.doc