Peru Road Urban Renewal District - Resolution of Necessity_InitiateCity of Dubuque
ITEM TITLE:
SUMMARY:
Copyrighted
November 6, 2017
Items to be set for Public Hearing # 2.
Peru Road Urban Renewal District - Resolution of
Necessity
City Manager recommending approval of a Resolution of
Necessity that finds that the proposed Peru Road Urban
Renewal Area is a blighted area and that the area is
appropriate for an urban renewal project; directs the City
Manager to prepare a proposed Urban Renewal Plan for
the Peru Road Urban Renewal Area; and sets a public
hearing on the proposed plan for December 4, 2017.
RESOLUTION of Necessity finding that certain property
near 32nd and Jackson Streets is an Urban Renewal Area,
meets the definition of a Blighted Area under the Urban
Renewal Law, and that development of said area is
necessary in the interest of the residents of the City of
Dubuque, Iowa, authorizing and directing the City Manager
to prepare an Urban Renewal Plan for the Peru Road Urban
Renewal Area, and setting dates of hearing and
consultation on a proposed Urban Renewal Plan for said
Area
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for December 4, 2017
ATTACHMENTS:
Description
Peru Road Urban Renewal District Resolution of
Necessity -MVM Memo
Staff Memo
Attachment A - Area Map
Attachment B - Legal Description of New Area
Blight Assessment
Resolution of Necessity
Notice of Public Hearing
Type
City Manager Memo
Staff Memo
Supporting Documentation
Supporting Documentation
Supporting Documentation
Resoluti ons
Supporting Documentation
THE CITY OF
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Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Necessity for the Proposed Urban Renewal Plan for the
Peru Road Urban Renewal Area
DATE: November 1, 2017
Economic Development Director Maurice Jones recommends City Council approval of a
Resolution of Necessity that finds that the proposed Peru Road Urban Renewal Area is
a blighted area and that the area is appropriate for an urban renewal project; directs the
City Manager to prepare a proposed Urban Renewal Plan for the Peru Road Urban
Renewal Area; and sets a public hearing on the proposed plan for December 4, 2017.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen'
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Maurice Jones, Economic Development Director
Masterpiece on the Mississippi
Dubuque
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2007 • 2012 • 2013 • 2017
Economic Development
Department
50 West 131h Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Resolution of Necessity for the proposed Urban Renewal Plan for the
Peru Road Urban Renewal Area
DATE: October 31, 2017
INTRODUCTION
This memorandum presents for City Council consideration a Resolution of Necessity
that: 1) finds that the proposed Peru Road Urban Renewal Area ("Area") is a blighted
area as defined in Iowa Code Chapter 403, Urban Renewal, and that the Area is
appropriate for an urban renewal project; 2) directs the City Manager to prepare a
proposed Urban Renewal Plan for the Area; and 3) sets a public hearing on the
proposed Plan for December 4, 2017.
BACKGROUND
The Peru Road Urban Renewal Area will be an urban renewal area which allows the
City of Dubuque to capture tax increment revenue from improvements made in the Area
in order to promote redevelopment activities. The Area will be created primarily for
blight mitigation and redevelopment of the soon -to -be -vacated Flexsteel manufacturing
facility.
Before a municipality can exercise the authority conferred by Chapter 403, a Resolution
of Necessity must be adopted finding that the area being considered for urban renewal
district designation is a slum, blighted or economic development area and that the
rehabilitation, conservation, redevelopment, development, or a combination thereof, of
the area is necessary in the interest of the public health, safety or welfare of the
residents of the city.
DISCUSSION
The properties in the proposed Peru Road Urban Renewal Area include the current
Flexsteel manufacturing facility, much of which was built in 1897. Because the facility is
inefficient and costly to maintain, Flexsteel worked with the City of Dubuque, Dubuque
County, Dubuque Initiatives, Northeast Iowa Community College, the Iowa Economic
Development Authority, and Greater Dubuque Development Corporation to develop a
financing package that allows the company to operate competitively in a new facility
being constructed in Dubuque Industrial Center South on Seippel Road. Consequently,
within the next 18 months the current facility will be vacant. It is anticipated that the
entire 43 -acre site will need to have environmental mitigation performed as part of
preparing the site for redevelopment. Creating the Peru Road Urban Renewal Area will
allow for the financing of possible public road and utility work, as determined necessary.
The attached Resolution finds that the Area is a blighted area as defined in Iowa
Code Chapter 403, and that the Area is appropriate for an urban renewal project and
directs staff to prepare an Urban Renewal Plan for the Area, setting forth the area to be
included and the urban renewal projects that are currently expected to be undertaken in
the Area. Staff will also forward the Plan to the City's Long Range Planning
Commission for review and comment and to begin the consultation process required by
law with affected taxing entities.
A City Council public hearing on the Urban Renewal Plan will be scheduled for
December 4, 2017. The public notice will be published four to twenty days before the
meeting to allow for the appropriate publication requirements. This will allow time for
preparation of the Plan and the consultation process with the taxing entities.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached Resolution of Necessity that begins
the process of creating the Urban Renewal Plan for the Peru Road Urban Renewal
Area.
The proposed Plan will provide for the use of tools that encourage investment and
development activities in the Area and support revitalization within the Area and the
community at large.
Attachment
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Attachment B
Peru Road Urban Renewal District
October 25, 2017
District Boundary Description
Peru Road Urban Renewal District shall include the following described properties:
Lot 1 of Great Western Subdivision No. 1, and also including the Public Right of
Way of Jackson Street abutting thereto; and
Lot 2 of Great Western Subdivision No. 1; and
Lot 1 of Great Western Subdivision No. 4; and
Lot 2 of Great Western Subdivision No. 2; and
Lot 1 of Great Western Subdivision No. 2, and also including the Public Right of
Way of Jackson Street abutting thereto.
All in the City of Dubuque, Iowa
1
Blight Assessment — November 2017
City of Dubuque, Iowa
Study Area. This summary presents an assessment of blight conditions in the City of
Dubuque, Iowa. The area evaluated included property within the proposed Peru Road
Urban Renewal Area of the City. The purpose of this evaluation is to determine whether
blight exists in the Urban Renewal Area. The proposed Plan is intended to authorize
projects that will mitigate blight and/or promote economic development in the Urban
Renewal Area.
The City is establishing this Urban Renewal Area to assist in redevelopment efforts of
the Flexsteel manufacturing facility at the corner of 32nd and Jackson Streets (Jackson
Facility) which will close in the near future due to aging structural condition, high
renovation costs, irregular and antiquated design, and in some cases unattractive
appearance. This Urban Renewal Area will allow the City to promote economic
development and remediate blight conditions, including providing resources and
assistance in the development or redevelopment of a large tract of land for commercial
and/or industrial uses.
Executive Summary. This Plan designates the Urban Renewal Area as appropriate for
economic development (commercial and industrial) and blight remediation. This blight
assessment determines that blight exists in the Urban Renewal Area.
Windshield Survey. Steve Sampson Brown conducted a windshield survey on June 23,
2017 of the entire Urban Renewal Area. Results were as follows:
1. Urban Renewal Area. Land uses are primarily commercial and industrial.
A. The east side of the area was observed to have a significant level
of deterioration of building elements. The general condition of many of the
buildings indicated disrepair and a lack of investment. Lot layout in some
cases appears to lack planning, provides poor provisions for vehicular
traffic, and hinders traffic flow. Site conditions appear to suffer from a lack
of general maintenance and deterioration of parking surfaces.
B. The Jackson Facility property is currently being evaluated to
determine the impact of contamination from the current and former
operations. The current company has manufactured furniture at the
property since 1936. Prior operations included a battery factory and
others. The City has partnered with the current property owner, Dubuque
Initiatives, the County, and the State of Iowa's Economic Development
Authority to find solutions for environmental mitigation and redevelopment
of the property. Due to the anticipated extent of the contamination
encountered, the exact boundaries of the expected contamination have
not been defined. Additional testing will be necessary.
C. Dubuque Initiatives will soon own the approximately forty -three -
acre site currently occupied by Flexsteel. Greater Dubuque Development
Corp. officials report that marketing of this site to prospective companies
has been difficult. Once industrial prospects learn of the soil
contamination in the area, they have all declined to consider any site
development plans at this location.
County Assessor Data. Assessed valuation data relating to commercial/industrial
properties located in the Urban Renewal Area was reviewed using reports from the
Dubuque County Assessor website. According to the data, the assessed valuations of
most properties in the Urban Renewal Area have been stagnant for the last ten-year
period.
Conversations with Rick Engelken at the Assessor's office reveal that his office
completed a county -wide re-evaluation in 2014 and then re -valued some properties that
same year. Mr. Engelken mentioned that property values in this area have "been flat,
either decreasing or remaining stagnant recently."
The Urban Renewal Area includes several conditions which contribute to blighting
influences:
A. Most buildings are 80-100 years old. Structures are obsolete, not
conducive to current day business needs, and limit development potential.
B. Although located near convenient traffic patterns, many of these structures
would be difficult to market due to.
C. Many structures are dilapidated, in need of maintenance, neglected.
D. The large structure that dominates the Urban Renewal Area is the current
Flexsteel manufacturing facility. This structure was built approximately 120 years
ago and was previously used as a battery factory, but will soon be empty due to
the company relocating elsewhere in the community. The building is deteriorated
with crumbling structural materials in various stages of decay. Site deterioration
was also noted. Neglect is evident. This property is an economic liability to the
City not only due to visual blight but also due to its decreasing taxable valuation.
E. Most new commercial development in the last several years has located
on the west or south parts of the community, particularly those areas adjacent to
Highways 61, 151, and 20. Flexsteel is leaving the area to relocate to the
southwest side of the community. Their decision to relocate was the result of the
need for modern, efficient space and the fact that it was more cost-effective to
construct new buildings and parking facilities on undeveloped, open property
rather than to have to demolish old buildings or to renovate aging structures to
suit business needs of today. These examples of migration from the center out
confirm the difficulties facing City officials in their attempts to revitalize the area.
Interpretations and Conclusions. For purposes of this evaluation, the definition of blight
in the Code of Iowa Section 403.17(5) was utilized. "Blighted area means an area of a
municipality within which the local governing body of the municipality determines that
the presence of a substantial number of slum, deteriorated, or deteriorating structures;
defective or inadequate street layout; faulty lot layout in relation to size, adequacy,
accessibility or usefulness; insanitary or unsafe conditions; deterioration of site or other
improvements; diversity of ownership, tax or special assessment delinquency exceeding
the fair value of the land; defective or unusual conditions of title; or the existence of
conditions which endanger life or property by fire and other causes; or any combination
of these factors; substantially impairs or arrests the sound growth of a municipality,
retards the provision of housing accommodations, or constitutes an economic or social
liability and is a menace to the public health, safety, or welfare in its present condition
and use."
It should be noted that a comprehensive planning approach normally involves
considering a targeted area in its entirety, not as separable, individual parts. As a result,
blight conditions need not be evident throughout the entire Urban Renewal Area being
evaluated. The fact that some individual properties or blocks are free from blight and
buildings are maintained in good condition does not negate the finding of blight. The
blight finding is not only just related to the physical conditions of the Urban Renewal
Area, but includes consequences where the surroundings become undesirable and
negatively influenced. The presence of these undesirable conditions results in a
negative impact on the Urban Renewal Area as a whole.
It should also be noted that blight remediation often involves a two-step process. Step
one being demolition or removal of a blighted structure or condition and step two being
construction of replacement buildings or reuse of a property once freed from the
blighted condition. Both steps are often needed to result in significant and successful
blight mitigation. Both steps are being performed in conjunction with several private and
public sector partners.
Findings from the windshield survey described above, existing property conditions, a
lack of replacement buildings being constructed to replace dilapidated structures, and
evidence of potential soil contamination in the Urban Renewal Area collectively support
the conclusion that blight exists in the Urban Renewal Area. Accordingly, these and
other blight factors and conditions by themselves, and in combination, substantially
impair or arrest the sound growth of the City, constitute an economic or social liability
and/or are a menace to the public health, safety or welfare in their present condition and
use.
Cumulatively, the factors reviewed as part of this assessment are sufficient to confirm a
finding of blight in Urban Renewal Area. This conclusion verifies the substantial needs
within the Urban Renewal Area where concentrated efforts are needed in order to
undertake blight remediation efforts.
Peru Road Urban Renewal Area — Current Conditions
RESOLUTION NO. 362-17
A RESOLUTION OF NECESSITY FINDING THAT CERTAIN PROPERTY NEAR 32ND
AND JACKSON STREETS IS AN URBAN RENEWAL AREA, MEETS THE
DEFINITION OF A BLIGHTED AREA UNDER THE URBAN RENEWAL LAW, AND
THAT DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE
RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AUTHORIZING AND DIRECTING
THE CITY MANAGER TO PREPARE AN URBAN RENEWAL PLAN FOR THE PERU
ROAD URBAN RENEWAL AREA, AND SETTING DATES OF HEARING AND
CONSULTATION ON A PROPOSED URBAN RENEWAL PLAN FOR SAID AREA
WHEREAS, the City Council of the City of Dubuque has determined that the
creation of the Peru Road Urban Renewal Area (the "Area") will stimulate, through public
involvement and commitment, blight mitigation and private investment in redevelopment
activity; and
WHEREAS, the City Council has determined that the area described in Attachment
A to this Resolution meets the definition of a blighted area as defined in Chapter 403
"Urban Renewal" of the Iowa Code; and
Whereas, Chapter 403 of the Iowa Code requires that before urban renewal
authority may be exercised, a City Council must adopt a resolution of necessity finding
that the area in question is a slum, blighted or economic development area, and that so
designating such area is necessary in the interest of the public health, safety or welfare
of the residents of the municipality.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the proposed Peru Road Urban Renewal Area, as generally
described in Attachment A and Attachment B to this Resolution, is a blighted area as
defined by Chapter 403 of the Iowa Code and is appropriate for an urban renewal project.
Section 2. That the development of the Peru Road Urban Renewal Area is
necessary and appropriate to facilitate the proper growth and development of the
community in accordance with sound planning and local community objectives.
Section 3. That the City Manager is authorized and directed to prepare an Urban
Renewal Plan for the Peru Road Urban Renewal Area, to forward said Plan to the City's
Long Range Planning Commission for review and comment and to begin the consultation
process required by law with affected taxing entities.
Section 4. That the City Council hold a public hearing on the adoption of the
proposed Urban Renewal Plan for the Peru Road Urban Renewal Area on December 4,
2017 at 6:00 p.m. in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa
52001. The notice of said hearing shall generally identify the areas covered by the Plan
and the general scope of the urban renewal activities planned for such areas, and said
notice shall be published and available to the public not less than four days nor more than
twenty days before the date of said meeting. A copy of the notice of public hearing shall
be sent by ordinary mail to the affected taxing entities.
Section 5. That the City Clerk is further directed to send by ordinary mail a copy
of said Plan, the notice of public hearing, a notice of consultation, and, to the extent the
Plan includes the use of tax increment revenues for a public building, an analysis of
alternative development and funding options for such public buildings, to the Dubuque
Community School District and the Dubuque County Board of Supervisors, as the
affected taxing entities.
PASSED, APPROVED and ADOPTED this 6th d of November, 2017.
Roy D. Buolayor
ATTEST:
Kev . Firnstafil, City
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will
hold a public hearing on the 4m day of December, 2017, at 6:00 p.m. in the Historic
Federal Building, City Council Chambers (Second Floor), 350 West 6th Street,
Dubuque, Iowa, at which meeting the City Council will consider a proposed Urban
Renewal Plan ("Plan") for the Peru Road Urban Renewal Area ("Area").
The Plan, if approved, would create the Area and provide information concerning the
urban renewal projects to be undertaken in accordance with the Plan. The City Council
previously has found that the new Area meets the definition of a blighted area in
Chapter 403 of the Iowa Code.
The Area, referred to as the Peru Road Urban Renewal Area, includes the properties
described as follows:
Lot 1 of Great Western Subdivision No. 1, and also including the Public Right of
Way of Jackson Street abutting thereto; and
Lot 2 of Great Western Subdivision No. 1; and
Lot 1 of Great Western Subdivision No. 4; and
Lot 2 of Great Western Subdivision No. 2; and
Lot 1 of Great Western Subdivision No. 2, and also including the Public Right of
Way of Jackson Street abutting thereto.
All in the City of Dubuque, Iowa
At the above meeting, the City Council will receive oral and written comments from any
resident or property owner of said City to the above action. Written comments
regarding the proposed Plan may be submitted to the City Clerk's Office by noon on the
date of said public hearing.
Copies of the proposed Urban Renewal Plan for the Peru Road Urban Renewal Area,
and any supporting documents for the public hearing are on file in the City Clerk's
Office, 50 W. 13th Street, and may be viewed during normal working hours.
Any visual or hearing-impaired persons needing special assistance or persons with
special accessibility needs should contact the City Clerk's Office at (563) 589-4120 or
TTY (563) 690-6678 at least 48 hours prior to the meeting.
Published by order of the City Council given on the 6th day of November, 2017.
Kevin S. Firnstahl, CMC, City Clerk
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