Quebecor Econ. Devel. DisMEMORANDUM
September 10, 2002
TO:The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Necessity
Urban Renewal Plan for Quebecor Economic Development District
Economic Development Director Bill Baum recommends adoption of a Resolution of
Necessity finding that the creation of a new Quebecor Economic Development District is
both necessary and appropriate under Iowa's urban renewal statute. This district would
include approximately 10 acres of property located on Kerper Boulevard encompassing
the current location of Quebecor World Dubuque, Inc. A Quebecor Economic
Development District will provide the opportunity for an existing Dubuque business to
grow and expand in Dubuque through the use of tax increment financing as a special
economic development tool.
The proposed economic development area described in the attached Resolution of
Necessity is currently zoned Heavy Industrial and will provide incentives for the
expansion of Quebecor World Dubuque, Inc.'s printing and production operation, which
will create 106 new jobs with an average pay of $14.63 per hour, in space formerly
occupied by McGraw-Hill for warehousing and distribution. McGraw-Hill has moved into
its new 320,000 square foot facility located in the Dubuque Industrial Center West.
McGraw-Hill will maintain 100 existing jobs and create10 new jobs at its new $6.7
million distribution center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
____________________
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
W'~lliam Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
September 6, 2002
TO:Michael Van Milligen, City Manager
FROM:William Baum, Economic Development Director
SUBJECT:Resolution of Necessity
Urban Renewal Plan for Quebecor Economic Development District
Introduction
This memorandum presents for City Council consideration a Resolution of Necessity finding
that the creation of a new Quebecor Economic Development District is both necessary and
appropriate under Iowa's urban renewal statute. This district would include approximately
10 acres of property located on Kerper Boulevard encompassing the current location of
Quebecor World Dubuque, Inc. See map attached.
Background
On March 4, 2002, the City Council approved a Memorandum of Understanding with
Quebecor that outlined public incentives available to the company in recognition of the
company's $24 million investment in their facilities, including both real property
improvements and new equipment, and new job creation.
Before a municipality can exercise the authority conferred by Chapter 403 "Urban Renewal"
of the Iowa Code, a Resolution of Necessity must be adopted finding that the area being
considered for urban renewal district designation is either 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. After such resolution, an urban renewal plan must be
adopted by the municipality.
The Iowa Code defines an economic development area as, "an area of a muncipality
designated by the local governing body as appropriate for commercial and industrial
enterprises or housing and residential development for low and moderate income families,
including single or multifamily housing."
The proposed economic development area described in the attached Resolution of
Necessity is currently zoned Heavy Industrial and will provide incentives for the expansion
of Quebecor World Dubuque, Inc.'s printing and production operation in space formerly
occupied by McGraw-Hill for warehousing and distribution. McGraw-Hill has moved into its
new 320,000 square foot facility located in the Dubuque Industrial Center West.
Discussion
An area can be designated as an economic development area for commercial and
industrial enterprises only after an urban renewal plan for the area is adopted. The
attached Resolution directs staff to prepare such a plan. An urban renewal plan must
establish the need and appropriateness of the proposed area for commercial and
industrial use and must conform to the general plan for the community.
The attached Resolution also directs staff to forward the completed plan to the Long
Range Planning Commission for their review and comment. This is required by
Chapter 403 along with a consultation process that involves all affected taxing entities.
Those taxing entities, the County, School Board and community college, have an
opportunity to suggest modifications to the proposed division of revenue generated in
the economic development district prior to the required public hearing on the urban
renewal plan, but they cannot block adoption of the plan.
Staff anticipates that the urban renewal plan for the creation of a Quebecor Economic
Development District will be ready for City Council public hearing on November 4, 2002.
This includes time for completion of the plan, review and comment period by the Long
Range Planning Commission and the consultation process with the taxing entities.
Recommendation
I would recommend the City Council adopt the attached Resolution of Necessity that
will begin the process of designating the proposed area as an economic development
area for the purpose of establishing urban renewal authority. Once that authority is
established, through the adoption of an urban renewal plan, Quebecor will be able to
use the benefits of tax increment financing to assist in the redevelopment of this
property. The value of their own investment in this redevelopment area will be the basis
of the City's ability to assist the project through the use of a tax increment rebate.
A Quebecor Economic Development District will provide the opportunity for an existing
Dubuque business to grow and expand in Dubuque through the use of tax increment
financing as a special economic development tool.
Action Step
The action step for the City Council is to adopt the Resolution of Necessity attached to
this memorandum.
attachments
Prepared by: Pamela Myhre
Economic Development Planner
F:\US ERS~Pm~hre\WPDOCS\U R\QUEBECOR~necres.mern.doc
RESOLUTION NO. 479-02
A RESOLUTION OF NECESSITY FINDING THAT PROPERTY LEASED BY
QUEBECOR WORLD DUBUQUE, INC. LOCATED ON KERPER BOULEVARD
IS AN ECONOMIC DEVELOPMENT AREA AND THAT THE
REDEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF
THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA.
Whereas, the City Council of the City of Dubuque has determined that the area
described in Section 1 hereof and leased by Quebecor World Dubuque, Inc. will provide
new opportunities for local economic development activities; and
Whereas, the City Council has determined that the redevelopment of existing
industrial property will enhance the City's ongoing economic development efforts; and
Whereas, the City Council has found that the Quebecor property meets the
definition of an economic development area as found 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 following described area is an economic development area
as defined by Chapter 403 of the Iowa Code and is appropriate for an urban renewal
project, to wit:
Lot 1 of Lot 1 of Lot 1 of Block 5 and Lot 1 of Lot 2 of Lot 1 of Block 5 of River
Front Subdivision No. 3 and Lot 1 of Lot 2 of Block 1 of River Front Subdivision
No. 5 all in the City of Dubuque, Dubuque County, Iowa and any adjoining public
right-of-way.
(Hereinafter called the Quebecor Economic Development District.)
Section 2. That the redevelopment of the Quebecor Economic Development
District for new and expanded industrial uses 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 development of the area will provide new opportunities for
industrial expansion and job creation in the community.
Section 4. That the City Manager is authorized and directed to prepare an
Urban Renewal Plan for the Quebecor Economic Development District, 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 5. That the City Clerk is directed to publish notice of a public hearing on
the adoption of an Urban Renewal Plan for the Quebecor Economic Development
District to be held on November 4, 2002 at 6:30 p.m. in the Carnegie-Stout Public
Library Auditorium, 11th and Bluff Streets, Dubuque, Iowa 52001 and that said notice
shall generally identify the area covered by the Plan and the general scope of the Plan
and the activities planned for such area.
Section 6. That the City Clerk is further directed to send by ordinary mail a copy
of said notice of public hearing to the Dubuque Community School District, the County
Board of Supervisors and the Northeast Iowa Community College, as the affected
taxing entities.
PASSED, APPROVED and ADOPTED this 16th day of September, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider
City Clerk
F:\USERS\Pmyhre\WPDOCS\U R\QUEBECOR~nec.res.doc