Salvia House Long Range Planning CorrespondencePlanning Services Department
City Hall
50 West 13~ Street
Dubuque, IA 52001-4864
(563) 589-4210 phone
(563) 589-4221 fax
(563) 589-6678 TDD
planning@cityofdubuque. org
The Honorable Mayor and City Council
City of Dubuque
50 W.13th Street
Dubuque, IA 52001
RE: Salvia House Urban Revitalization Area Plan
Dear Mayor and City Council Members:
May 22, 2008
Discussion
On May 21, 2008 the Long Range Planning Advisory Commission reviewed the
proposed Salvia House Urban Revitalization Area Plan.
One of the roles of the Long Range Planning Advisory Commission is to review urban
revitalization plans and urban revitalization plan amendments for consistency with the
comprehensive plan for the city.
The plan will create an urban revitalization area at 2160 Elm Street as well as adjoining
vacant properties to allow tax exemption for a proposed 18 room single-room
occupancy (SRO) facility for women. The Plan is enclosed.
Recommendation:
By a vote of 6 - 0, the Long Range Planning Advisory Commission recommends
approval of the proposed Salvia House Urban Revitalization Area Plan as it is
consistent with the 2008 Dubuque Comprehensive Plan.
Respectfully submitted,
L~~~
Dr. Charles Winterwood, Chairperson
Long Range Planning Advisory Commission
Enclosure
THE CTTY OF
DUB E
MQStef~llCCe OYl tI1C MISSISS1~71
cc: Michael Van Milligen, City Manager
David Harris, Housing & Community Development Director
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Long Range Planning Advisory Commission
FROM: Laura Carstens, Planning Services Manager i~`
SUBJECT: Salvia House Urban Revitalization Area Plan
DATE: May 6, 2008
Introduction
The purpose of this memorandum is to forward the enclosed Salvia House Urban
Revitalization Area Plan for review and comment by the Long Range Planning Advisory
Commission. The plan will create an urban revitalization area at 2160 Elm Street as well as
adjoining vacant properties to allow tax exemption for a proposed 18 room single-room
occupancy (SRO) facility for women. The Plan is attached.
Discussion
The property at 2160 Elm Street currently contains a deteriorated residential structure. The
adjoining lots are vacant. The existing structure will be removed and an 18 room SRO facility
for low- and moderate-income women will be constructed on the site. Development of the
SRO will be accomplished through the assistance of HOME Program funds from the Iowa
Department of Economic Development as well as the tax exemption from the establishment of
the proposed Salvia House Urban Revitalization Area Plan.
The tax exemptions are used to stimulate private investment by abating tax increases that
usually accompany property improvements. The additional private investment provides a long-
term increase or stabilization in the area's tax base, enhances the viability of revitalization
areas and/or supports important city objectives such as economic development and affordable
housing.
One of the roles of the Long Range Planning Advisory Commission is to review urban
revitalization plans and urban revitalization plan amendments for consistency with the
comprehensive plan for the city.
The proposed Salvia House Urban Revitalization Area Plan is consistent with the following
2008 Dubuque Comprehensive Plan goals and objectives:
Economic Development
Goal 9 - To strengthen the local tax base
• Objective 9.3 -Encourage property improvements and revitalization throughout
the City.
Salvia House Urban Revitalization Area Plan
F:\Usersldjohnson\LRPAC1Urban Revitalization Districts\ Salvia House Urban Revitalization
Area Plan Memo
May 6, 2008
Page 2
2.' Land Use and Urban Design
Goal 1 - To provide sufficient opportunities for industrial development sites within
the community.
• Objective 1.1 -Promote inclusive and economically integrated neighborhoods
that allow a diverse mix of residents and housing types.
• Objective 1.2 -Promote providing a wide range of housing options throughout
the community.
Goal 7 - To encourage redevelopment opportunities within the City in an effort to
revitalize unused or underused property while promoting the preservation of viable
and affordable housing stock.
• Objective 7.1 -Encourage redevelopment or adaptive reuse of vacant or
underutilized buildings and sites.
• Objective 7.2 -Promote infill development, where appropriate, to encourage
more compact urban form and avoid needless and costly sprawl while providing
appropriate parking levels.
3. Housing
Goal 1 - To promote the preservation, rehabilitation, and investment in our city
housing stock and neighborhoods.
• Objective 1.2 - Encourage a range of affordable, accessible, and decent rental
housing options throughout the community.
Goal 2 - To promote the creation and maintenance of an adequate supply of sound
and affordable housing integrated throughout the community.
• Objective 2.1 -Promote City Partnerships with private sector, non-profit, other
government agencies and neighborhood groups to access available public
funding and attract private capital for affordable housing development.
• Objective 2.2 -Promote mixed income, mixed .rental housing developments.
Goal 6 - To promote the understanding that the availability and affordability of
housing is an important key to successful economic development.
4. Human Services
Goal 2 - To promote optimum services to meet food, clothing, shelter,
transportation and other basic needs.
• Objective 2.2 -Support an adequate, affordable supply of quality housing for
low and moderate income households and the homeless.
• Objective 2.4 -Encourage public/private coalitions to address human services
needs
Recommendation
Staff recommends the Long Range Planning Advisory Commission recommend approval of
the Salvia House Urban Revitalization Area Plan, as the proposed plan is consistent with the
2008 Dubuque Comprehensive Plan.
Enclosures
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
FROM: David Ha ,Housing and Community Development Department
SUBJECT: Review and Comment on Salvia House Urban Revitalization Area Plan
DATE: April 31, 2008
Introduction
The Long Range Planning Advisory Commission is requested to review the attached Salvia
House Urban Revitalization Area Plan and to comment on its conformance with the general
plan for the community. The plan will create an urban revitalization area at 2160 Elm Street
and adjoining vacant properties to allow property tax exemption for a proposed 18 room
single-room occupancy (SRO) facility for women.
Background
Section 36-7(7) of the Code of Ordinances of the City of Dubuque requires review of an
urban revitalization plan as to its conformity with the general plan for the development of
the municipality as a whole. The ordinance assigns this duty to the Long Range Planning
Commission.
The Commission does not approve or deny the urban revitalization plan but reviews the
plan and submits written recommendations with respect to its conformance with the
general plan. The City Council received the Salvia House Urban Revitalization Area Plan at
its April 21St meeting and set a public hearing for June 2, 2008 following a 30 day public
review period. At that time the Council will also review a proposed amendment to the
Washington Neighborhood Urban Revitalization District to remove these properties from
that UR district and allow them to be re-established as the Salvia House Urban
Revitalization Area.
Discussion
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 abating 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.
The proposed plan provides for the construction of an 18 room single room occupancy
(SRO) facility for low- and moderate-income women at 2160 Elm Street and adjoining
vacant parcels. Michelle Mihalakis is proposing to buy the property and has been awarded
$800,000 in HOME Program funds by the Iowa Department of Economic Development.
She is requesting the urban revitalization tax exemption to ensure the feasibility of the
project.
The Salvia House Urban Revitalization Area Plan supports several goals of the
Comprehensive Plan:
Housing
• To assist local service agencies in providing shelter and semi-independent living
for persons in need of supporting services.
• To promote the creation and maintenance of an adequate supply of sound,
affordable housing integrated throughout the community.
Economic Development
• To establish and maintain housing and transportation, communication, and utility
systems which support and foster quality development.
Land Use and Urban design
• To encourage the concept of mixed use development to create diverse and self-
sufficient neighborhoods.
Human Services
• To work with area providers to promote optimum services to meet food, clothing,
shelter, transportation, and other basic material needs.
Recommendation
Staff encourages the Long Range Planning Advisory Commission to support the efforts of
the City to provide housing alternatives for the residents of Dubuque. Although the
proposed plan allows a deteriorated single family structure to be removed, it will provide for
the establishment of 18 SRO units for low income women.
Action Step
The action step for the Long Range Planning Advisory Commission is to transmit its
recommendations as to the conformity of the proposed Salvia House Urban Revitalization
Area Plan to the City Council prior to the June 2, 2008 public hearing.
Prepared by Aggie Tauke, Community Development Specialist
Attachments
Cc: Michael Van Milligen, City Manager
Laura Carstens, City Planner
F:\Users\ATAUKE\Urban Revite\Salvia HouselSalvia House LRPC mem.08.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
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 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 loca#ed 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.
4
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:\USERSWTAUKE\Urban Revite\Salvia House\Salvia House UR District. April 08.doc
Salvia House Urban Revitalization Area