Washington Neighborhood Urban Revitalization_Salvia HouseTHE CTTY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Washington Neighborhood Urban Revitalization Area Plan
and Adoption of Salvia House Urban Revitalization Area Plan
DATE: April 16, 2008
Housing & Community Development Director David Harris is recommending approval of
resolutions amending the Washington Neighborhood Urban Revitalization Area Plan
and finding the Salvia House Urban Revitalization Area necessary and setting a public
hearing on the plan for June 2, 2008.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
V
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Mic ael C. Van Milligen
MCVM/Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing & Community Development Director
Dubuque
THE CITY OF
DuB E
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Masterpiece on the Mississippi
2007
MEMORANDUM
TO: Mich el C. Van Milligen, City Manager
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FROM: David ris, Housing and Community Development Department
SUBJECT: Amendment to Washington Neighborhood Urban Revitalization Area Plan
and Adoption of Salvia House Urban Revitalization Area Plan
DATE: April 14, 2008
Introduction
This memorandum recommends that the City Council review and approve resolutions to
amend the Washington Neighborhood Urban Revitalization Area Plan and adopt a Salvia
House Urban Revitalization Area Plan. The amendment will remove 2160 Elm Street and
adjoining vacant property from the Washington Neighborhood Urban Revitalization District
and place those properties in a new Salvia House Urban Revitalization Area.
Background
Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes
cities to designate areas as urban revitalization areas. Improvements to qualified real
estate within these designated areas may receive a total or partial exemption from property
taxes for a specified number of years. The exemptions are intended to stimulate private
investment by reducing tax increases that usually accompany property improvements.
This additional private investment provides along-term increase or stabilization in the
area's tax base, enhances the viability of revitalization areas and/or supports important city
objectives such as historic preservation, economic development and affordable housing
development.
In order to implement the provisions of Chapter 404, the City must prepare a revitalization
plan for each designated area and hold at least one public hearing after proper notice. The
law mandates specific criteria and procedures that must be followed.
Discussion
The City's Urban Revitalization Program offers a ten year property tax abatement for
eligible improvements to residential properties in designated revitalization districts. On
March 14, 2008 the Council approved a revised Washington Neighborhood Urban
Revitalization Area Plan that amended and expanded the district from 11th to 22"d Street,
Central Avenue to Elm Street and including the property from Elm Street to Kniest Street
from 20th to 22"d Street. The proposed amendment will now remove 2160 Elm Street and
adjoining vacant properties from the Washington Neighborhood Urban Revitalization
District to allow these properties to be established as asite-specific Salvia House Urban
Revitalization Area for the purpose of development of an affordable housing project.
Michelle Mihalakis proposes to construct an18 unit single room occupancy (SRO) at 2160
Elm and adjoining vacant properties. The current Washington Neighborhood Urban
Revitalization District allows for property tax exemption only for improvements, which
include rehabilitation and additions only to the existing structures. This project would not
currently be eligible for property tax exemption since an existing structure would be
removed and a new structure constructed. The Salvia House UR district would allow these
improvements.
The proposed amendment will also provide that adding residential rental units will not be
an eligible improvement for commercially assessed property in the Washington
Neighborhood Urban Revitalization District. Currently property assessed as commercial is
eligible for a property tax exemption for any qualified improvements that increase the
assessed value by fifteen percent. This will maintain or reduce the density of residential
rental units in the district and ensure the livability and function of the established
neighborhood.
Public Comment
Chapter 404 provides for a public comment period prior to the adoption of an urban
revitalization plan. Additionally, the City's Code of Ordinances requires comment by the
Long Range Planning Commission on any urban revitalization plan. Based upon these
requirements, the Council is requested to set a public hearing for June 2, 2008 that will
provide a 30 day comment period on the amendments to the Washington Neighborhood
UR Plan and on the new Salvia House UR plan. The property owners and tenants will be
notified. The Long Range Planning Commission will review the plan at their May 21st
meeting.
At the public hearing, the Council will be able to adopt the plan and pass a first reading of
an ordinance designating the property as an urban revitalization area. A second hearing
must be held only if the City receives within the thirty days a valid petition from at least ten
percent of owners or tenants within the designated revitalization area. If such a petition is
submitted, the City Council may set a second public hearing and proceed to act upon the
proposed Plan following that hearing. If no such petition is presented, the City Council may
simply adopt the proposed plan following the thirty-day period.
Recommendation
I recommend that the City Council approve the attached resolutions amending the
Washington Neighborhood Urban Revitalization Area Plan and finding the Salvia House
Urban Revitalization Area necessary and directing the Plans be set for a public hearing on
June 2, 2008. At the public hearing an ordinance can be adopted which directs the City
Clerk to publish the ordinance following the 30 day period if no valid petition for a second
hearing is filed.
Action Requested
The Action Step is for the City Council to adopt the attached resolutions.
Prepared by: Aggie Tauke, Community Development Specialist
F:\USERS\ATAUKE\Urban Revite\Wash Neigh UR\Wash Neigh UR Amend. Council memo.08.doc
RESOLUTION NO. 132-08
A RESOLUTION ACKNOWLEDGING A PROPOSED AMENDMENT TO THE PLAN
FOR THE WASHINGTON NEIGHBORHOOD URBAN REVITALIZATION AREA, AND
PROVIDING FOR A PUBLIC HEARING
Whereas, the City Council has found that an amendment to the Washington
Neighborhood Urban Revitalization Area Plan established by Ordinance No. 4-2007 is
necessary; and
Whereas, Chapter 404 of the Code of Iowa provides that a public hearing shall
be held on a proposed amendment to the Plan for the revitalization .area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the proposed April 2008 Amendment to the Washington
Neighborhood Urban Revitalization Area Plan, a copy of which is attached hereto and
made a part hereof, shall be made a matter of record and shall be available for public
inspection in the Office of the City Clerk at City Hall, 50 West 13th Street, and in the
Housing and Community Development Department 350 West 6th Street Suite 312,
Dubuque, Iowa.
Section 2. That the City Clerk is authorized and directed to submit the proposed
amendment to the Washington Neighborhood Urban Revitalization Area Plan to the
City's Long Range Planning Advisory Commission for review and comment;
Section 3. That the City Clerk is directed to publish notice of a public hearing on
the proposed amendment to the Washington Neighborhood Urban Revitalization Area
Plan to be held on June 2, 2008 at 6:30 p.m. in the City Council Chambers, 2nd Floor,
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa 52001; and
Section 4. That all interested parties will be notified as required by law by the
30th day prior to the public hearing.
Passed, approved and adopted this 21st day of April 2008.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERSWTAUKE\Urban Revite\Wash Neigh UR\Wash Neigh Amended UR Pub Hrg.RES.doc
RESOLUTION N0.133-08
RESOLUTION FINDING THAT THE DESIGNATION OF THE SALVIA HOUSE
URBAN REVITALIZATION PLAN IS NECESSARY IN THE INTEREST OF THE
PUBLIC HEALTH, SAFETY AND WELFARE OF THE RESIDENTS OF THE
CITY OF DUBUQUE, IOWA AND PROVIDING FOR A PUBLIC HEARING
THEREON.
Whereas, the City Council of the City of Dubuque finds that the property at 2160
Elm Street and adjacent vacant property is in need of repair and underutilized, and
Whereas, Michelle Mihalakis has proposed to purchase the property and
construct a 18 room single room occupancy (SRO) facility and requests the
establishment of an urban revitalization district.; and
Whereas, the area proposed for designation under the Urban Revitalization Act
is an economic development area appropriate for housing and residential development
as defined by Section 403.17 of the Iowa Code; and
Whereas, Chapter 404 of the Code of Iowa provides that a public hearing shall
be held on any proposed Urban Revitalization Area Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the rehabilitation, redevelopment and economic development of the
hereinafter described area at 2160 Elm Street and adjoining vacant property is
found to be necessary in the interest of the public health, safety and welfare of the
residents of the City, to wit:
Lot 1 of Lot 2 of Lot 1 of Lot 12 and Lot 2 of Lot 2 of Lot 1 of Lot
12 of Kniest's Subdivision; Lot 1 of Lot 1 of the North 1/3 of Lot
99 of L.H. Langworthy's Addition; Lot 1 of Lot 1 of Elm Street
Subdivision; and all of that part of Burton W. Boyes Place No. 3
lying north of the southerly line of Lot 1 of Lot 1 of Elm Street
Subdivision extended northeasterly across said Burton W. Boyes
Place No. 3 to a point of intersection with the southwesterly line
of Lot 5 of Lot 11 of Kniest's Subdivision, all in the City of
Dubuque, Iowa.
Section 2. That the Salvia House Urban Revitalization Area Plan as proposed
meets the eligibility criteria of Chapter 404.1 of the Code of Iowa, 2001.
Section 3. That the proposed Salvia House Urban Revitalization Area Plan attached
hereto, shall be a matter of record and shall be available for public inspection in the
office of the City Clerk at City Hall, 50 West 13th Street, Dubuque, Iowa.
Section 4. That the City is authorized and directed to submit the Salvia House Urban
Revitalization Area Plan to the City's Long Range Planning Advisory Commission for
review and comment; and
Section 5. That the City Clerk is directed to publish notice of a public hearing on the
Salvia House Urban Revitalization Area Plan to be held on June 2, 2008 at 6:30
p.m. in the City Council Chambers, 2nd Floor, Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa 52001; and
Section 6. That the owners of record will be notified by the thirtieth day prior to the
public hearing.
Passed, approved and adopted this
2lst day of April 08.
Roy D. uol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERSWTAUKE\Urban Revite\Salvia House\Salvia House UR Res.doc
Washington Neighborhood Urban Revitalization
Area Plan
April 2008 Amendment
1.0 Introduction
This amendment to The Washington Neighborhood Urban Revitalization Area
Plan removes property at 2160 Elm and adjoining vacant property from the
Revitalization District identified in Section 2.1 and amends Section 5.1 to modify
the type of improvements eligible.
The State of Iowa, under Iowa Code Chapter 404, allows cities to designate
areas as urban revitalization districts. Under this Act, improvements to qualified
areas may receive a total or partial exemption from property taxes for a specified
number of years. The exemptions are intended to stimulate private investment
by the reduction of tax increases related to property improvements.
2.0 The Area
2.1 Location
Map 1 identifies the location of the Revitalization District. As indicated on the
map, this area is generally located from 11th to 22"d Street and from Central
Avenue to the west side of Elm Street, also including the property on the west
side of Central from 14th Street to 22"d Street, and the property included east
of Elm Street to Kniest Street from 20th to 22"d Street. Excluded from this
district is the existing Manesseh House Urban Revitalization District and the
property at 2160 Elm and adjoining vacant property as described herein.
The boundaries of the district are:
Beginning at the northeast corner of Kniest Street and 22"d Street, continue
southeast on Kniest Street until 20th Street (Garfield Avenue), turn west until
Elm Street, turn south on Elm Street until 11th Street, turn west on 11th
Street until Central Avenue, turn north on Central until 14th Street, at which
point turn west and run north behind the properties facing Central Avenue to
22nd Street, then continue east on 22"d Street to the starting point, excluding
Lot 1 of Lot 2 of Lot 1 of Lot 12 and Lot 2 of Lot 2 of Lot 1 of Lot 12
of Kniest's Subdivision; Lot 1 of Lot 1 of the North 1/3 of Lot 99 of L.H.
Langworthy's Addition; Lot 1 of Lot 1 of Elm Street Subdivision; and all of
that part of Burton W. Boyes Place No. 3 lying north of the southerly line of
Lot 1 of Lot 1 of Elm Street Subdivision extended northeasterly across said
Burton W. Boyes Place No. 3 to a point of intersection with the southwesterly
line of Lot 5 of Lot 11 of Kniest's Subdivision, and excluding the Manesseh
House Urban Revitalization District at 2080 Elm Street, legally described as
Page 2
Lot 1 of Lot 2 of Lot 1 of Lot 2 of Lot 2 of Lot 3 of Lot 10 and part of Lot 1 of
Lot 1 of Lot 2 of Lot 3 of Lot 10 in Kniest Subdivision, all in the City of
Dubuque, Iowa.
5.0 Revitalization Program
5.1 Tax Exemption
a) Residential property, assessed as residential or assessed as commercial
property, if the commercial property consists of three or more separate
living quarters with at least seventy-five percent of the space used for
residential purposes, will be eligible for property tax exemption. The
property tax exemption will be in accordance with the Code of Iowa,
Chapter 404.3(4), providing for aten-year, 100% exemption of the actual
value added by the improvements.
Residential property as defined above will be further limited in that
conversion of structures from single family residential to two or more
residential units per structure will not be eligible for property tax exemption
in order to maintain or reduce the density of rental units in the district.
Property assessed as commercial, other than described above, will be
eligible for property tax exemption in accordance with Code of Iowa,
Chapter 404.3 (3), providing for athree-year, 100% exemption of the
actual value added by the improvements. This will provide an incentive for
neighborhood commercial uses to expand and grow in the area.
All commercially assessed property will be further limited in that
improvements that add residential rental units will not be eligible for
property tax exemption. This will maintain or reduce the density of such
rental units in the district and ensure the livability and function of the
established neighborhood.
b) "Qualified real estate" means real property, other than land, which is
located in a designated revitalization area and to which improvements
have been added, during the time the area was so designated, which have
increased the actual value by at least fifteen percent. or at least ten
percent in the case of real property assessed as residential, or which
have, in the case of land upon which is located more than one building
and not assessed as residential property, increased the actual value of the
buildings to which the improvements have been made by at least fifteen
percent.
c) Property tax exemption shall be available only for `improvements' to
existing structures, including rehabilitation and additions to existing
structures .The exemption shall not be available for construction of new
Page 3
structures. "Actual value added by eligible improvements" means the
actual value added as of the first year for which the exemption was
received.
d) Any improvements that were assessed before the area was officially
designated will not be eligible for exemption. Improvements begun prior to
one year prior to the area becoming designated will not be eligible for
exemption. All exemptions existing at the time of the repeal of the
Washington Street Urban Revitalization District shall continue until their
expiration.
e) Improvements must result in that structure meeting applicable building,
plumbing, mechanical, electrical, and other code requirements of the City
of Dubuque.
f) The actual value of the improvements must result in an increase in
assessed value as stated above in (b). Each year that an application is
made for tax exemption, the assessed value must have increased in that
year by the required percentage.
g) The area shall become a Revitalization District commencing upon the
adoption of the ordinance approving this Revitalization District by the City
Council. The designation of the Washington Neighborhood Urban
Revitalization Plan Area will remain in effect until the desired level of
revitalization has been attained. Upon repeal of the ordinance
establishing this revitalization area, all existing exemptions would continue
until their previously established expiration date.
EXHIBIT A Map
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Page 4
Salvia House
Urban Revitalization Area Plan
April 2008
Introduction
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404,
authorizes cities to designate an area of the City as a revitalization area.
Improvements to qualified real estate within these designated areas may then
become eligible for an exemption from property taxes for a specified number of
years. To implement the provisions of the Act, the City must prepare a
revitalization plan for each designated area. This document is the plan
addressing the requirements of the Act for an area to be known as the Salvia
House Urban Revitalization Area.
Area eligibility criteria
The City Council has determined that this area is eligible for designation as a
revitalization area as it meets one of the criteria outlined in Iowa Code.
Specifically, the City Council has found this area to qualify as an economic
development area as defined by Section 403.17 of the Iowa Code. This
definition includes housing development where there is an inadequate supply of
affordable, decent and safe housing and the provision of that housing will help to
retain or attract industry or meet the needs of the elderly or disabled or of a
population which may not be adequately served.
Designating this area as an Urban Revitalization Area will assist the provision of
housing to a population which is not adequately served. The proposed Single
Room Occupancy facilities will provide single women with decent housing at
affordable rent. The property tax exemption will make this project feasible.
Legal description
The property to be included in the Salvia House Urban Revitalization Area is
located at 2160 Elm Street and adjoining properties, legally described as:
Lot 1 of Lot 2 of Lot 1 of Lot 12 and Lot 2 of Lot 2 of Lot 1 of Lot 12 of Kniest's
Subdivision; Lot 1 of Lot 1 of the North 1/3 of Lot 99 of L.H. Langworthy's
Addition; Lot 1 of Lot 1 of Elm Street Subdivision; and all of that part of Burton W.
Boyes Place No. 3 lying north of the southerly line of Lot 1 of Lot 1 of Elm Street
Subdivision extended northeasterly across said Burton W. Boyes Place No. 3 to
a point of intersection with the southwesterly line of Lot 5 of Lot 11 of Kniest's
Subdivision, all in the City of Dubuque, Iowa.
A map of the area boundaries is attached as Exhibit A
Current assessed value
The current assessed valuation for the property as 2007 is as follows:
2160 Elm - $39,400 building value, $13,300 land value for a total of
$52,700 Burton W. Boyes Place #3 - $5,900 in total, for the land only.
Property ownership
The current property owner within the area, as of April 2008 is:
2160 Elm -Randy & Brenda L Mills and Rickey A. and Vickie Mills,
7967 Olde Massey Road, Dubuque, IA 52003
Burton W. Boyes Place #3 -Fred J. Boyes, 4090 Peru Road, Dubuque, IA
52001
Existing zoning classification
The existing zoning as April 2008 is OR (Office Residential) for the entirety of the
property within the boundaries of the proposed Urban Revitalization Area.
The zoning was changed from R-2A (Alternate Two-Family Residential district)
on December 3, 2007, to allow for the construction of an 18 room single room
occupancy facility for women.
On October 25, 2007, the Zoning Board of Adjustment approved a special
exception to allow construction of an 18 room SRO seven (7) feet from the front
property lines of Elm Street and fifteen (15) feet from the front property line of
Kniest Street. They also approved a variance allowing a 18-room single room
occupancy with a deficit of six off-street parking spaces.
Existing and proposed land use
The property at 2160 Elm currently contains deteriorated residential structures.
The adjoining lots are vacant. The existing structures will be removed and a 18
room single room occupancy (SRO) facility for low- and moderate-income
women is proposed for the site and will be constructed with limited rents.
City services
There are no current plans to expand or improve City services to this area.
Currently the area enjoys the same level of City services as most other areas of
the City.
Exemption details
Only residential property, assessed as commercial and consisting of three
or more separate living quarters with at least seventy-five percent of the
space used for residential purposes will be eligible for property tax
exemption. The property tax exemption will assist the Single Room
2
Occupancy (SRO) housing facilities in its goal of providing single women
with decent housing at affordable rent. This population currently is not
adequately served. The property tax exemption will help to make these
projects feasible.
"Qualified real estate" means real property other than land, which is
located in a designated revitalization area and to which improvements
have been added, during the time the area was so designated, which have
increased the actual value by at least fifteen percent.
"Qualified real estate" also means land upon which no structure existed at
the start of new construction, which is located in a designated
revitalization area and upon which new construction has been added
during the time the area was so designated.
"Actual value added by improvements" means the actual value added as
of the first year for which the exemption was received.
Any improvements that were assessed before the area was officially
designated will not be eligible for exemption. Improvements begun prior to
one year prior to the area becoming designated will not be eligible for
exemption.
Improvements must result in that structure meeting applicable building
code requirements of the City of Dubuque. The improvements are subject
to design review approval by the City Manager to ensure that the historic
and aesthetic character of the district is maintained and enhanced.
The actual value of the improvements must result in an increase in
assessed value by at least fifteen percent. Each year that an application
is made for tax exemption, the assessed value must have increased in
that year by at least fifteen percent.
The property tax exemption schedule, in accordance with Code of Iowa,
Chapter 404.3 Subsection 4, is as follows:
A ten-year, 100% exemption of the actual value added by
the improvements.
The designation of the Salvia House Urban Revitalization Area will remain
in effect only until the area is fully redeveloped or for three years,
whichever occurs first. Upon repeal or expiration of the ordinance
establishing the revitalization area, all existing exemptions would continue
until their previously established expiration date.
3
Industrial revenue bonds
There are no plans to issue industrial revenue bonds for revitalization projects in
this area.
Relocation
Relocation will be required for current tenants of. the property. Should relocation
occur as a result of rehabilitation in the proposed district, the person(s) causing a
qualified tenant to be displaced shall pay all of the relocation costs of the tenant
as a condition for receiving atax-exemption under Iowa Code Section 404.3.
"Qualified tenant" shall mean the legal occupant of a residential dwelling unit
which is located within this designated revitalization area and who has occupied
the same dwelling unit continuously since one year prior to the city's adoption of
this plan pursuant to Iowa Code Section 404.2.
Anticipated Grant /Loan Funds
The project at 2160 Elm has been approved by the Iowa Department of
Economic Development for HOME Program funds in the amount of $ 800,000.
Conclusion
The Salvia House Urban Revitalization Area will assist the redevelopment efforts
of the area by providing for the new SRO building, which will provide housing for
18 female occupants. After the ten-year property tax exemption period elapses,
the full assessed value of the properties will revert to the tax rolls to the benefit of
the entire community.
This area, upon designation, will follow the procedures for application and
granting of the property tax exemption within the City of Dubuque.
Application procedure
1. The property owner must apply for an exemption by February 1St of the
assessment year for which the exemption is first claimed, but not later
than the year in which all the improvements are first assessed for taxation,
or the following two assessment years, in which case the exemption is
allowed for the total number of years in the exemption schedule. Upon the
request of the owner, the governing body of the City may provide by
resolution that the owner may file an application no later than February 1
of any other assessment year selected by the governing body in which
case the exemption is allowed for the number of years remaining in the
exemption schedule.
2. The application must contain, at a minimum, the following:
a. The nature of the improvements,
b. The cost of the improvements,
c. The actual or estimated date of completion, and
d. The tenants living on the property as of the date of the City's
resolution adopting this plan.
3. The property owner has the option of submitting a proposal for an
improvement project to the City prior to submitting a formal application. If
the proposed project is in conformance with the revitalization plan, the City
Council shall, by resolution, give preliminary approval of the project. Such
preliminary approval shall not entitle the owner to exemption until the
improvements have been completed and found to be qualified. If the
proposal is rejected, the owner may submit an amended proposal.
4. The City reviews all applications to determine whether the
improvement project conforms to the revitalization plan, is within a
designated area, and if the improvements were made during the
appropriate time period. If the project meets all three criteria, the City
shall forward the application to the assessor by March 1St, with a
statement as to which exemption applies. Applications for exemptions for
succeeding years on approved projects shall not be required.
5. The local assessor shall review each application by making a physical
review of the property, to determine if the improvements made increased
the actual value of the qualified real estate by at least fifteen percent. If
the assessor determines that the actual value of that real estate has
increased by at least the requisite percent, the assessor shall certify the
property valuation, determined pursuant to the tax exemption schedule, to
the County Auditor at the time of transmitting the assessment rolls. The
assessor shall notify the applicant of the determination, and the assessor's
decision may be appealed to the local board of review at the time
specified in Iowa Code. The property owner may also refile an application
in a subsequent year after additional improvements have been made.
6. After the tax exemption is granted, the assessor shall continue to grant
the tax exemption, with periodic physical review by the assessor, for the
ten-year time period specified in the tax exemption schedule.
7. An application for exemption received by February 1 in any year after
the year in which the improvement was completed and first assessed for
taxation, is a late application. Late application may be made in any year
up to the tenth year following completion of the improvement. The
exemption period will be the remainder of the ten year period, which
began upon completion of the improvement, except the total number of
years in the exemption schedule will be allowed if a claim for exemption is
filed within two years of the February 1 filing deadline.
EXHIBIT A (Map)
F:\USERS\ATAUKE\Urban Revite\Salvia House\Salvia House UR District. April 08.doc