Application for Expansion of Enterprise Zone-2THE CITY QF DUIJUgU@
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Application for Enterprise Zone Expansion of the City's Existing Enterprise
Zone - 2
DATE: March 24, 2008
Economic Development Director Dave Heiar recommends City Council approval of the
filing of an application with the Iowa Department of Economic Development requesting
Enterprise Zone Expansion to the City's existing Enterprise Zone - 2 to include property
west of Central Avenue owned by Holy Ghost Church.
The City currently has two enterprise zones. Enterprise Zone - 1 includes Census
Tract 1 and Census Tract 7.01 Block Group 1 and covers the downtown, Loras College
area, and the riverfront areas. Enterprise Zone - 2 includes Census Tract 5 and is
located generally along Central Avenue from the downtown area to E. 32"d Street.
Enterprise zone designation provides incentives for new development that include tax
credits, refunds of sales, service and use taxes, supplemental new jobs training
withholding credit and property tax exemption. The city will continue to offer only a 10-
yearone dollar per year property tax exemption that protects the City's ability to use tax
increment financing when appropriate.
Holy Ghost Church is considering receiving proposals from developers to purchase the
former catholic school house and has asked the City to consider expanding the
Enterprise Zone.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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March 11, 2008
TO: Michael C. Van Milligen, City Manager
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FROM: David J. Heiar, Economic Development Director ~ fir,
SUBJECT: Application for Enterprise Zone Expansion of the City's Existing
Enterprise Zone - 2
INTRODUCTION
This memorandum presents for City Council review and approval a resolution approving
the filing of an application with the Iowa Department of Economic Development (IDED)
requesting Enterprise Zone Expansion to the City's existing Enterprise Zone - 2.
BACKGROUND
The City currently has two enterprise zones. Enterprise Zone - 1 includes Census Tract
1 and Census Tract 7.01 Block Group 1 and covers the downtown, Loras College area,
and the riverfront areas. Enterprise Zone - 2 includes Census Tract 5 and is located
generally along Central Avenue from the downtown area to E. 32"d Street.
Enterprise zone designation provides incentives for new development that include tax
credits, refunds of sales, service and use taxes, supplemental new jobs training
withholding credit and property tax exemption. The City will continue to offer only a 10-
year one dollar per year property tax exemption that protects the City's ability to use tax
increment financing in coterminous urban renewal/enterprise zone areas.
DISCUSSION
The proposed expansion of EZ - 2 would include property west of Central Avenue
owned by Holy Ghost Church. The Holy Ghost Church is considering receiving
proposals from developers to purchase the former catholic school house and has asked
the City to consider expanding the Enterprise Zone - 2 to include their properties on
Central Avenue. The following is information explaining the rationale for including the
Holy Ghost Church property in the Enterprise Zone - 2 even though it is not located in a
census tract that meets the qualifying guidelines.
The U.S. Census Bureau mainly uses major streets to define the boundaries for their
Census Tracts. The City's Census Tract 5, which qualifies for Enterprise Zone
designation, is The City's Enterprise Zone - 2. The eastern boundary of Census Tract 5
is Central Avenue. The Holy Ghost properties lie just to the west of Central Avenue in
Census Tract 11 and abut one of Dubuque's famous bluffs. I have included maps
showing the Holy Ghost properties, the contours of the bluff, and the Census Tracts. I
believe the Holy Ghost properties would be characterized as being a part of Census
Tract 5 instead of Census Tract 11 as the U.S. Census Bureau has defined.
The Holy Ghost properties encompass 6.15 acres, which added to Enterprise Zone - 2,
would increase the total acreage of the Enterprise Zone to 382.15 acres. This addition
would not surpass the Enterprise Zone legislative rule that not more than1 % of the
City's area can be in an Enterprise Zone.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution authorizing the filing of
the application for Enterprise Zone expansion Enterprise Zone - 2. The benefits of zone
designation provide additional financial development tools for the City and developers
as we seek to attract and stimulate eligible housing and job creation projects in the
community.
ACTION STEP
The Action Step for the City Council is to adopt the attached resolution.
attachments
F:\USERSWdejong\Enterprise Zone\Holy Ghost Expansion\20080311 Holy Ghost Exp memo.doc
RESOLUTION NO. 114-08
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT REQUESTING AN EXPANSION OF
ENTERPRISE ZONE - 2 IN THE CITY OF DUBUQUE.
Whereas, the State of Iowa Department of Economic Development (IDED) has the
Enterprise Zone program to provide benefits and incentives for redevelopment and
reinvestment in areas of a community that meet certain eligibility criteria; and
Whereas, the City of Dubuque, Iowa has identified an area which meets the eligibility
requirements; and
Whereas, the City Council of Dubuque, Iowa has determined that said expansion of
Enterprise Zone - 2 will provide financial assistance to assist in rehabilitating properties in the
expansion area; and
Whereas, the City of Dubuque, Iowa is eligible to submit an application for the
Enterprise Zone program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an application for an Enterprise Zone expansion of the
City's existing Enterprise Zone - 2 is approved.
Section 2. That the schedule of value-added property tax exemption for this
Enterprise Zone shall be One Dollar ($1.00) per year for ten years.
Section 3. That the Mayor is hereby authorized and directed #o execute, on behalf
of the City Council of the City of Dubuque, Iowa, the appropriate application materials.
Section 4. That the City Manager is directed to submit the application to the Iowa
Department of Economic Development together with such documents as may be required.
Section 5. That, once the Enterprise Zone is recertified, a copy of this resolution
and all supporting documents be forwarded to the City Assessor.
Passed, approved and adopted this 7th day of April, 2008.
Attest:
Jeanne F. Schneider, City Clerk
Roy D. Buol, Mayor
F:\USERS\Adejong\Enterprise Zone\Holy Ghost Expansion\EZ2 Holy Ghost Resolution.doc
Enterprise Zones and the Holy Ghost Expansion
in the City of Dubuque, Iowa
Holy Ghost Church
Base data provided by Dubuque County GIS
Enterprise Zones
EZ-2 Holy Ghost Expansion Area