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Urban Revitalization Applications for Residential Property Tax Abatement_CorrectedRESOLUTION NO. 117-17 RESOLUTION RESCINDING RESOLUTION NO. 58-17 AND APPROVING PROPERTY TAX ABATEMENT APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, the City Council approved resolution No. 58-17 on February 20, 2017; and Whereas, resolution No. 58-17 incorrectly shows a fifteen (15) year abatement schedule for Kunkel and Associates and the approved in the Kunkel and Associates Urban Revitalization Plan only allows a ten (10) year abatement schedule; and Whereas, resolution No. 58-17 should be rescinded and replaced with a corrected resolution reflecting the approved Kunkel and Associates Urban Revitalization Plan. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council of the City of Dubuque does hereby rescind Resolution No. 58-17 and establish the following resolution for the Calendar Year 2016 Urban Revitalization Applications. Section 2. That the below -described tax abatement applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. A. Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to abate property taxes for improvements made to properties in designated revitalization areas; and B. The Urban Revitalization Act requires property owners to submit a written application for abatement by February 1 of the assessment year for which the abatement 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 C. Pursuant to the requirements of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Upper Main, Jackson Park, Washington Neighborhood, West 11th Street, Langworthy, Cathedral, Old Main, Kunkel & Associates, Lange Estates; and D. The City of Dubuque, as of February 1, 2016, received residential tax abatement applications from the following property owners in the aforementioned urban revitalization districts eligible for 10 year 100% abatement; Upper Main Urban Revitalization Area, established August 21, 1995 140 Loras Boulevard Jaeger & Jaeger, LLC Jackson Park Urban Revitalization Area, established October 6, 1980 1576 Locust St 324 W Locust St 326 W Locust St 1576 W Landlord LLC Weaver Castle, LLC Weaver Castle, LLC Washington Neighborhood Urban Revitalization Area, established March 2007 1461 Jackson St Community Housing Initiatives (CHI) 1513 Washington St Community Housing Initiatives (CHI) 1629 Washington St Hilary Dalton 1631 Jackson St Robert & Erin Daughers 1656 Jackson Paula Unsen 1812 Central Ave (Multifamily) Richard Taft 1812 LLC 1849 Jackson St Community Housing Initiatives (CHI) 2073 Jackson St Josh Weiland 2139 Jackson Community Housing Initiatives (CHI) 308 E. 22nd St Community Housing Initiatives (CHI) West 11th Street Urban Revitalization Area established March. 1981 920 & 922 Center Place Bruce & Renae Bettcher Lanaworthv Urban Revitalization Area established December. 2002 1148 Langworthy St Kevin Cassill & Melissa Daykin Cassill 490 Alpine St Patrick & Amy Greener Lange Estates 3275 Pennsylvania Ave Applewood IV, LLC E. The City of Dubuque, as of February 1, 2016, received commercial tax abatement applications from the following property owners in the Washington Neighborhood Urban Revitalization District eligible for 3 year 100% abatement; Washington Neighborhood Urban Revitalization Area, established March 2007 1812 Central Ave (Storefronts) Richard Taft 1812 LLC 422 & 430 Garfield Ave Robert F Klauer F. The City of Dubuque, as of February 1, 2016, received commercial/industrial tax abatement application from the following property owner in the Kunkel and Associates urban Revitalization district, eligible for a partial exemption equal to a percent of the actual value added by the improvements over a period of 10 years as follows: a. For the first year, eighty percent (80%) b. For the second year, seventy percent (70%) c. For the third year, sixty percent (60%) d. For the fourth year, fifty percent (50%) e. For the fifth year, forty percent (40%) f. For the sixth year, forty percent (40%) g. For the seventh year, thirty percent (30%) h. For the eighth year, thirty percent (30%) i, For the ninth year, twenty percent (20%) j. For the tenth year, twenty percent (20%) Kunkel & Associates Urban Revitalization Area. established January 2015 401 Data Court Kunkel Properties, LLC G. The Housing and Community Development Department has reviewed the above-described applications and inspected the properties, and has determined the applications and the improvements conform to all requirements of the City of Dubuque's Urban Revitalization Plans. Passed, approved and adopted this 3rd day of April, 20 7. 4 G ' Roy D. `Buol, Mayor Attest: Kevin Firristahl, City Clerk F:\USERS\CDBG\Urban Revite\...Annual Apps\2017\To Council\UrbanRevitResl7 - Corrected.doc Copyrighted April 3, 2017 City of Dubuque Consent Items # 8. ITEM TITLE: Urban Revitalization Applications for Residential Property Tax Abatement SUMMARY: City Manager recommending approval of a resolution rescinding Resolution 58-17 and adopting a resolution correcting Calendar Year 2016 applications for residential property tax abatement. RESOLUTION Rescinding Resolution No. 58-17 and approving Property Tax Abatement applications submitted by property owners in recognized Urban Revitalization Areas and authorizing the transmittal of the approved Applications to the City Tax Assessor SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Calendar Year 2016 Urban Revitalization Program City Manager Memo Applications-MVM Memo Staff Memo Staff Memo Resolution Resolutions THE CITY OF Dubuque DUB E i" Masterpiece on the Mississippi 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Calendar Year 2016 Urban Revitalization Program Applications DATE: March 23, 2017 Housing and Community Development Department Director Alvin Nash recommends City Council approval of a resolution rescinding Resolution 58-17 related to calendar year 2016 applications for residential property tax abatement. Resolution 58-17 approved applications filed in accordance with the Urban Revitalization ordinance and directed that the approved applications be forwarded to the City Assessor. Resolution 58-17 incorrectly listed a 15 year abatement schedule for Kunkel and Associates Urban Revitalization Plan. The approved Kunkel and Associates Urban Revitalization Plan is a 10 year abatement schedule. The attached Resolution rescinds Resolution No. 58-17 and corrects the abatement schedule for Kunkel and Associates Urban Revitalization Plan. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing and Community Development Department Director THE CITY OF Dubuque AII11-America CiI.ty UB E1 Masterpiece on the Mississippi 2007.2012.2013 TO: Michael C. Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Calendar Year 2016 Urban Revitalization Program Applications DATE: February 13, 2017 INTRODUCTION This memorandum presents for City Council consideration the attached resolution rescinding Resolution 58-17 related to calendar year 2016 applications for residential property tax abatement. The resolution approves applications filed in accordance with the Urban Revitalization ordinance and directs that the approved applications be forwarded to the City Assessor. Resolution 58-17 incorrectly listed a fifteen (15) year abatement schedule for Kunkel and Associates Urban Revitalization Plan. The approved Kunkel and Associates Urban Revitalization Plan is a ten (10) year abatement schedule and is reflected in the attached resolution. 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 and 2008. In 1995, the Upper Main Urban Revitalization Area was designated and in 2002 the Langworthy, Old Main and Cathedral Urban Revitalization areas were designated. In January 2015, the Kunkel and Associates Urban Revitalization Plan was adopted providing a partial 10-year partial abatement for improvements. The Lange Estate and Paragon Square Urban Revitalization Plans were adopted in April 2016. Additionally, a number of other small areas have been designated over the years, but these designations have primarily expired. The Washington Neighborhood Urban Revitalization district was revised, the boundaries expanded in March 2007 and amended in 2008. In addition to the ten-year residential abatement on improvements, this district also allows three-year abatement for commercial property. 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 abatements 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 the Housing and Community Development Department have completed an inspection of each property to determine if the improvements have been completed, are in general conformance with the area plan, and, if necessary, the appropriate permits have been obtained. If the City Council finds the applications 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 applications will be forwarded to the City Assessor prior to March 1 sc to approve the assessment. Twenty-two applications for Urban Revitalization were received prior to February 1 , 2017. Two applications were denied. DISCUSSION Kunkel & Associates Urban Revitalization Area, established January 2015 401 Data Court Kunkel Properties, LLC The City of Dubuque received commercial/industrial tax abatement application from Kunkel and Associates. The approved Kunkel and Associates Urban Revitalization Plan allows for a partial exemption equal to a percent of the actual value added by the improvements over a period of ten (10) years as follows: a. For the first year, eighty percent (80%) b. For the second year, seventy percent (70%) c. For the third year, sixty percent (60%) d. For the fourth year, fifty percent (50%) e. For the fifth year, forty percent (40%) f. For the sixth year, forty percent (40%) g. For the seventh year, thirty percent (30%) h. For the eighth year, thirty percent (30%) i. For the ninth year, twenty percent (20%) j. For the tenth year, twenty percent (20%) Resolution 58-17 incorrectly shows a partial exemption equal to a percent of the actual value added by the improvements over a period of fifteen (15) years as follows: 2 a. For the first year, eighty percent. b. For the second year, seventy-five percent. c. For the third year, seventy percent. d. For the fourth year, sixty-five percent. e. For the fifth year, sixty percent. f. For the sixth year, fifty-five percent. g. For the seventh year, fifty percent. h. For the eighth year, forty-five percent. i. For the ninth year, forty percent. j. For the tenth year, thirty-five percent. k. For the eleventh year, thirty percent. I. For the twelfth year, twenty-five percent. m. For the thirteenth year, twenty percent. n. For the fourteenth year, twenty percent. o. For the fifteenth year, twenty percent. RECOMMENDATION I recommend that City Council approve the attached Resolution rescinding resolution No 58.17 and correcting the abatement schedule as approved in the Kunkel and Associates Urban Revitalization Plan. ACTION STEP The Action Step is for the City Council to adopt the attached resolution. Prepared by Erica Haugen, HCV/CDBG Specialist cc Maurice Jones 3 RESOLUTION NO. - 2017 RESOLUTION RESCINDING RESOLUTION NO. 58-17 AND APPROVING PROPERTY TAX ABATEMENT APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, the City Council approved resolution No. 58-17 on February 20, 2017; and Whereas, resolution No. 58-17 incorrectly shows a fifteen (15) year abatement schedule for Kunkel and Associates and the approved in the Kunkel and Associates Urban Revitalization Plan only allows a ten (10) year abatement schedule; and Whereas, resolution No. 58-17 should be rescinded and replaced with a corrected resolution reflecting the approved Kunkel and Associates Urban Revitalization Plan. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1 . The City Council of the City of Dubuque does hereby rescind Resolution No. 58-17 and establish the following resolution for the Calendar Year 2016 Urban Revitalization Applications. Section 2. That the below-described tax abatement applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. A. Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to abate property taxes for improvements made to properties in designated revitalization areas; and B. The Urban Revitalization Act requires property owners to submit a written application for abatement by February 1 of the assessment year for which the abatement 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 C. Pursuant to the requirements of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Upper Main, Jackson Park, Washington Neighborhood, West 11th Street, Langworthy, Cathedral, Old Main, Kunkel & Associates, Lange Estates; and D. The City of Dubuque, as of February 1 , 2016, received residential tax abatement applications from the following property owners in the aforementioned urban revitalization districts eligible for 10 year 100% abatement; Upper Main Urban Revitalization Area, established Auqust 21 , 1995 140 Loras Boulevard Jaeger & Jaeger, LLC Jackson Park Urban Revitalization Area, established October 6, 1980 1576 Locust St 1576 W Landlord LLC 324 W Locust St Weaver Castle, LLC 326 W Locust St Weaver Castle, LLC Washington Neighborhood Urban Revitalization Area, established March 2007 1461 Jackson St Community Housing Initiatives (CHI) 1513 Washington St Community Housing Initiatives (CHI) 1629 Washington St Hilary Dalton 1631 Jackson St Robert & Erin Daughers 1656 Jackson Paula Unsen 1812 Central Ave (Multifamily) Richard Taft 1812 LLC 1849 Jackson St Community Housing Initiatives (CHI) 2073 Jackson St Josh Weiland 2139 Jackson Community Housing Initiatives (CHI) 308 E. 22nd St Community Housing Initiatives (CHI) West 11th Street Urban Revitalization Area, established March, 1981 920 & 922 Center Place Bruce & Renae Bettcher Langworthy Urban Revitalization Area, established December, 2002 1148 Langworthy St Kevin Cassill & Melissa Daykin Cassill 490 Alpine St Patrick & Amy Greener Lange Estates 3275 Pennsylvania Ave Applewood IV, LLC E. The City of Dubuque, as of February 1 , 2016, received commercial tax abatement applications from the following property owners in the Washington Neighborhood Urban Revitalization District eligible for 3 year 100% abatement; Washington Neighborhood Urban Revitalization Area, established March 2007 1812 Central Ave (Storefronts) Richard Taft 1812 LLC 422 & 430 Garfield Ave Robert F Klauer F. The City of Dubuque, as of February 1 , 2016, received commercial/industrial tax abatement application from the following property owner in the Kunkel and Associates urban Revitalization district, eligible for a partial exemption equal to a percent of the actual value added by the improvements over a period of 10 years as follows: a. For the first year, eighty percent (80%) b. For the second year, seventy percent (70%) c. For the third year, sixty percent (60%) d. For the fourth year, fifty percent (50%) e. For the fifth year, forty percent (40%) f. For the sixth year, forty percent (40%) g. For the seventh year, thirty percent (30%) h. For the eighth year, thirty percent (30%) i. For the ninth year, twenty percent (20%) j. For the tenth year, twenty percent (20%) Kunkel & Associates Urban Revitalization Area, established January 2015 401 Data Court Kunkel Properties, LLC G. The Housing and Community Development Department has reviewed the above- described applications and inspected the properties, and has determined the applications and the improvements conform to all requirements of the City of Dubuque's Urban Revitalization Plans. Passed, approved and adopted this 3rd day of April, 2017. Roy D. Buol, Mayor Attest: Kevin Firnstahl, City Clerk F:\USERS\CDBG\Urban Revite\...Annual Apps\2017\To Council\Urban RevitRes17-Corrected.doc