Washington Neighborhood_Salvia House RevitalizationTHE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
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: May 23, 2008
Housing and Community Development Department Director David Harris is
recommending approval of the Amendment to the Washington Neighborhood Urban
Revitalization Area Plan and adoption of the Salvia House Urban Revitalization Area
Plan.
The proposed Washington Neighborhood Urban Revitalization amendment will 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.
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.
The proposed Salvia House Urban Renewal Plan will allow Michelle Mihalakis to
construct an18 unit single room occupancy (SRO) at 2160 Elm and adjoining vacant
properties. The existing structure would be removed and a new structure constructed.
The Plan provides for aten-year residential abatement on these improvements.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
t
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
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
MEMORANDUM
TO: Michael Van Milligen, City Manager
FROM: David H~rris, Housing and Community Development Department
SUBJECT: Amendment to Washington Neighborhood Urban Revitalization Area Plan
and Adoption of Salvia House Urban Revitalization Area Plan
DATE: May 20, 2008
Introduction
This memorandum recommends that the City Council adopt the attached ordinances to
amend the Washington Neighborhood Urban Revitalization Area Plan and adopt a Salvia
House Urban Revitalization Area Plan.
Background
The proposed Washington Neighborhood UR amendment will 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.
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.
The proposed Salvia House UR Plan will allow Michelle Mihalakis to construct an18 unit
single room occupancy (SRO) at 2160 Elm and adjoining vacant properties. The existing
structure would be removed and a new structure constructed. The Plan provides for a ten
year residential abatement on these improvements.
Discussion
Chapter 404 provides for a public comment period prior to the adoption of an urban
revitalization plan. Based upon these requirements, the Council set a public hearing for
June 2, 2008 that provided a 30 day comment period on the amended and new plans. The
property owners and occupants of the Salvia House UR Plan area were notified as
required.
Additionally, the City's Code of Ordinances requires comment by the Long Range Planning
Commission on any urban revitalization plan. They reviewed the Salvia House UR Plan at
their May 21St meeting.
At the public hearing, the Council will be able to approve the Washington Neighborhood
Plan Amendment. The Council will also be able to approve the Salvia House Urban
Revitalization plan and pass the ordinance designating the property as an urban
revitalization area. A second hearing must be held for the Salvia House UR plan 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 ordinances authorizing adoption of the
Washington Neighborhood Urban Revitalization Area Plan Amendment and the Salvia
House Urban Revitalization Area Plan on or after July 3, 2008 if no valid petition for a
second hearing is filed.
Action Requested
The Action Step is for the City Council to adopt the attached ordinances.
Prepared by: Aggie Tauke, Community Development Specialist
F:\USERS\ATAUKE\Urban Revite\Wash Neigh UR1Wash Neigh UR Amend. Council memo2.08.doc
ORDINANCE NO. 34-08
AN ORDINANCE AMENDING THE EXISTING WASHINGTON
NEIGHBORHOOD URBAN REVITALIZATION AREA PLAN PURSUANT
TO CHAPTER 404 OF THE CODE OF IOWA.
Whereas, the City Council of the City of Dubuque has previously established the
Washington Neighborhood Urban Revitalization Area by Ordinance 4-2007, and
Whereas, the City Council finds that the Washington Neighborhood Urban
Revitalization Area should be revised and certain properties containing 2160 Elm Street
and adjoining vacant properties should be removed from the area; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That- Ordinance 4-2007 establishing the Washington Neighborhood
Urban Revitalization Area Plan is hereby amended.
Section 2. That the Amended Washington Neighborhood Urban Revitalization
Area as herein described shall hereafter be designated as an urban revitalization area
pursuant to Chapter 4004 of the code of Iowa 2005, to wit:
Beginning at the northeast corner of Kniest Street and 22nd 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 22"d Street, then continue
east on 22nd 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 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.
Section 3. That the Washington Neighborhood Urban Revitalization Area Plan
April 2008 Amendment amending Section 2.1 and 5.1 as hereto attached is hereby
adopted and approved and the properties within said described area shall be subject to
the provisions of said Plan.
Section 4. That said Washington Neighborhood Urban Revitalization Area Plan
April 2008 Amendment shall hereafter be on file in the City Clerk's Office, City Hall,
Dubuque, Iowa.
Section 5. That the City Clerk is hereby authorized and directed to publish this
Ordinance on or after July 3, 2008, provided that the City Clerk prior to that date has
received no valid petition requesting a second public hearing, and in the event such
petition has been received, then this Ordinance shall be null and void.
Section 6. That said Washington Neighborhood Urban Revitalization Area Plan
April 2008 Amendment shall hereafter be on file in the City Clerk's Office, City Hall,
Dubuque, Iowa.
Passed, approved and adopted this 2nd day of June 2008
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERSWTAUKE\Urban Revite\Wash Neigh UR\Washington Neigh UR Amd Ord.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.
Page 4
EXHIBIT A Map
F:\USERSWTAUKE\Urban Revite\Wash Neigh UR\Wash Neigh UR Plan Amend 08.doc
ORDINANCE NO. 35-2008
AN ORDINANCE ESTABLISHING THE SALVIA HOUSE URBAN
REVITALIZATION AREA AS AN URBAN REVITALIZATION AREA
PURSUANT TO CHAPTER 404 OF THE CODE OF IOWA.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Salvia House Urban Revitalization Area as herein described
shall hereafter be designated an urban revitalization area pursuant to Chapter 404 of
the Code of Iowa 1999, 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 as hereto attached
is hereby adopted and approved and the properties within said described area shall be
subject to the provisions of said Plan.
Section 3. That said Salvia House Urban Revitalization Area shall hereafter be
on file in the City Clerk's Office, City Hall, Dubuque, Iowa.
Section 4. That the City Clerk is hereby authorized and directed to publish this
Ordinance on or after July 3, 2008, provided that the City Clerk prior to that date has
received no valid petition requesting a second public hearing, and in the event such
petition has been received, then this Ordinance shall be null and void.
Passed, approved and adopted this 2nd day of June 20
Attest: Roy D. Buol, Mayor
Jeanne F. Schneider, City Clerk
F:\USERSWTAUKE\Urban Revite\Salvia House\Salvia House UR Ord.doc
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 owners within the area, as of April 2008 are:
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 of 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 a deteriorated residential structure.
The adjoining lots are vacant. The existing structure will be removed and an 18
room single room occupancy (SRO) facility for low- and moderate-income
women, with limited rents, will be constructed on the site.
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
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 this
project 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 not 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 applications 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:IUSERSWTAUKE\Urban RevitelSalvia House\Salvia House UR District. April 08.doc