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Quebecor Economic Devel. DisMEMORANDUM October 28, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Urban Renewal Plan and Tax Increment Ordinance for Quebecor Economic Development District Economic Development Director Bill Baum recommends City Council approval of the Urban Renewal Plan for the Quebecor Economic Development District, which will support the efforts of Quebecor World Dubuque, Inc. to expand their operations on Kerper Boulevard and create new job opportunities for the community. It is further recommended that the City Council adopt an ordinance establishing a tax increment financing district for the Quebecor Economic Development District, which will allow the use of tax increment financing as an economic development financing tool in the new district. I concur with the recommendations and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM October 25, 2002 TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:Urban Renewal Plan for Quebecor Economic Development District Introduction The purpose of this memorandum is to forward for City Council review ahd approval the Urban Renewal Plan for the Quebecor Economic Development District. l'he Plan and Resolution adopting the Plan are attached. Background On September 16, 2002, the City Council approved a Resolution of Necessity finding that Property located along Kerper Boulevard and leased by Quebecor World Dubuque, Inc. is an economic development area and appropriate for urban renewa! activities. Staff has prepared an urban renewa p an for the area as per the directive of the Cty Council. The Plan has been rewewed by the Long Range Planning Commission and a consultation process has been concluded with the affected taxing entities as required by State Law. The Long Range Planning Commission has forwarded its recommendations to the City Council affirming that the Plan is consistent with the City's Comprehensive Plan for development. The required consultation with affected taxing bodies was held on October 3, 2002. Representatives from the Dubuque Community Schools were present. No comments or recommended changes to the proposed Plan were received during the allowed comment period. Discussion The objectives of the Urban Renewal Plan for the Quebecor Economic Development District are to create financial incentives to encourage new and existing businesses to invest in the district and to expand the property tax base of the district. The Plan provides for up to $600,000 to be used for public and private development assistance in the district. This Urban Renewal Plan provides an opportunity to provide tax increment financing assistance to support redevelopment activities in the District. The proposed Plan will: -assist a local business to expand into space vacated by the relocation of McGraw-Hill's distribution facility to the Dubuque Industrial Center West; -provide assistance based on the value of the company's own $4,000,000 investment in the district; and -support a company that plans to create 106 new jobs with an average wage of $14.63 per hour. Specific financial assistance to Quebecor involving the use of tax incrembnt financing will be proposed to the City Council at a future date after the Quebecor Economic Development District has been established. Recommendation I recommend that the attached Urban Renewal Plan be adopted to support the efforts of Quebecor World Dubuque, Inc. to expand their operations on Kerper Boulevard and create new job opportunities for the community. Action Step The Action Step for the City Council is to adopt the attached Resolution. attachments F:\USERS~Pm~re\WPDOCS\UR\QU EBECOR~adopt.mem.doc RESOLUTION NO. 594-02 A RESOLUTION APPROVING THE URBAN RENEWAL PLAN FOR THE QUEBECOR ECONOMIC DEVELOPMENT DISTRICT. Whereas, on September 16, 2002, the City Council of the City of Dubuque, Iowa authorized the preparation of an Urban Renewal Plan (the "Plan") for the Quebecor Economic Development District (the "District"); and Whereas, the City of Dubuque's primary objective in approving this Plan is to provide opportunities for further redevelopment and reinvestment in the community; and Whereas, the Long Range Planning Commission has reviewed the proposed Plan and has found that said document is consistent with the Comprehensive Plan for the development of the City of Dubuque as a whole and has transmitted its findings to the City Council; and Whereas, a consultation process has been undertaken with affected taxing entities in accordance with Chapter 403 of the Code of Iowa with no written objections or recommended changes to the Plan received; and Whereas, the City Council, in accordance with Chapter 403 of the Code of Iowa, has held a public hearing on the proposed Plan after public notice thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Urban Renewal Plan for the Quebecor Economic Development District, attached hereto and made reference to herein, be approved. Section 2. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of the Resolution in the office of the Dubuque County Recorder. Passed, approved and adopted this 4th day of November, 2002. Terrance M. Duggan, Mayor Attest: Karen M. Chesterman, Deputy City Clerk F:\USERS~Pm)hre\WPDOCS\UR\QUEBECOR~adopt res.doc URBAN RENEWAL PLAN Quebecor Economic Development District City of Dubuque, Iowa This Urban Renewal Plan provides for the development of the Quebecor Economic Development District. Its preparation was authorized by Resolution 479-02 of the City Council of the City of Dubuque, Iowa on September 16, 2002. Prepared by the Economic Development Department September 2002 TABLE OF CONTENTS A. INTRODUCTION PAGE 3 B. OBJECTIVES PAGE 3 C. DISTRICT BOUNDARIES PAGE 3 D. PUBLIC PURPOSE ACTIVITIES PAGE 4 E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS PAGE 4 F. LAND ACQUISITION AND DISPOSITION PAGE 5 G. FINANCING ACTIVITIES PAGE 5 H. STATE AND LOCAL REQUIREMENTS PAGE 6 I. DURATION OF APPROVED URBAN RENEWAL PLAN PAGE 6 J. SEVERABILITY PAGE 7 K, AMENDMENT OF APPROVED URBAN RENEWAL PLAN PAGE 7 L. ATTACHMENTS PAGE 7 2 URBAN RENEWAL PLAN Quebecor Economic Development District City of Dubuque, Iowa A. INTRODUCTION This URBAN RENEWAL PLAN (the "Plan") has been prepared pursuant to Resolution -02 of the City Council of the City of Dubuque as adopted on ,2002. Its intent is to stimulate economic development activities within the QUEBECOR ECONOMIC DEVELOPMENT DISTRICT (the "District") through the commitment of pqblic actions as specified herein. To achieve this objective, the City of Dubuque shall undertake the urban renewal actions specified in this Plan, pursuant to the powers granted to it under Chapter 403 of the Iowa Code, Urban Renewal Law. B. OBJECTIVES OF THE PLAN The primary objectives of the Plan are the development and redevelopment of the District for economic development activities, through: 1. Creation of financial incentives necessary to encourage new and existing businesses to invest in the District; and 2. Expansion of the property tax base of the District. C, DISTRICTBOUNDARIES The District is located within the City of Dubuque, County of Dubuque, State of Iowa. The District shall consist of the real property legally described as follows: 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 aCljoining public right-of-way. (Hereinafter called the Quebecor Economic Development District.) The Boundaries of the District are delineated on the ECONOMIC DEVELOPMENT DISTRICT map (Attachment A). The City of Dubuque reserves the right to modify the boundaries of the District at some future date. Any amendments to the Plan will be completed in accordance with Chapter 403 of the Iowa Code, Urban Renewal Law. D. PUBLIC PURPOSE ACTIVITIES To meet the OBJECTIVES of this Plan, the City of Dubuque is prepared to initiate and support development and redevelopment of the District through, among Other things, the following PUBLIC PURPOSE ACTIVITIES: 1. Use of tax increment financing, loans, grants and other appropriate financial tools in support of eligible public and private development and redevelopment efforts; and 2. Enforcement of applicable local, state and federal laws, codes and regulations. Public purpose activities are limited to those areas delineated on the PUBLIC PURPOSE ACTIVITY AREA map (Attachment B) All public purpose activities shall be conditioned upon and shall meet the restrictions and limitations placed upon the District by the Plan. E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS The LAND USE and PLANNING AND DESIGN CRITERIA set forth hereih shall apply to any and all District properties the development and/or the redevelopment of which is assisted by the City through any of the PUBLIC PURPOSE ACTIVITIES listed above. 1. Land Use The intent of this Plan is to promote the development of industrial land uses within the District. All uses shall be regulated by the zoning district established for the property. LAND USE map (Attachment C) identifies the existing and the proposed land uses within the District. 2. Plannin.q and Design Criteria The planning criteria to be used to guide the physical development of the District are those standards and guidelines contained within the City of Dubuque's ZOning Ordinance and other applicable local, state and federal codes and ordinances. 4 F. LAND ACQUISITION The City does not intend to acquire any property within the District. However, the City reserves the right to acquire, by negotiation or eminent domain, property rights required for the construction or reconstruction of streets and public utilities, or any other public facility or improvement. G. FINANCING ACTIVITIES To meet the OBJECTIVES of the Plan and to encourage the development of the District and private investment therein, the City of Dubuque is prepared to provide financial assistance to qualified industries and businesses through the making of loans or grants under Chapter 15A of the Iowa Code and through the use of tax increment financing under Chapter 403 of the Iowa Code. 1. Chapter I5A Loan or Grant The City of Dubuque has determined that the making of loans or grants of public funds to qualified industries and businesses is necessary to aid in the planning, undertaking and completion of urban renewal projects authorized under the Plan within the meaning of Section 384.24(3)(q) of the Iowa Code. Accordingly, in furtherance of the objectives of this Plan, the City of Dubuque may determine to issue bonds or loan agreements, in reliance upon the authority of Section 384.24A, Section 384.24(3)(q), Section 403.12 (general obligation bonds) or Section 403.9 (tax increment bonds), for the purpose of making loans or grants of public funds to qualified businesses. Alternatively, the City may determine to use available funds for the making of such loans or grants. In determining qualifications of recipients and whether to make any such individual loans or grants, the City of Dubuque shall consider one or more of the factors set forth in Section 15A.1 of the Iowa Code on a case-by-case basis. 2. Tax Increment Financing The City of Dubuque is prepared to utilize tax increment financing as a means of financing eligible costs incurred to implement the Public Purpose Activities identified in Part D of this Plan. Bonds or loan agreements may be issued by the City under the authority of Section 403.9 of the Iowa Code (tax increment bonds) or Section 384.24A, Section 384.24(3)(q) and Section 403.12 (general obligation bonds). The City acknowledges that the use of tax increment revenues delays the ability of other local taking bodies to realize immediately the direct tax benefits of new development in the District. The City believes, however, that the use of tax increment revenues to finance new development or redevelopment in the District is necessary in the public interest to achieve the OBJECTIVES of this Plan. Without the use of this special financing tool, new investment may not otherwise occur or may occur with another jur sd ct on f new development does not take place in Dubuque, property values could stagnate and the City, County and School Distdct may receive less taxes during the duration of this Plan than they would have if this Plan were not implemeted. 5 Quebecor Economic Development District Public Purpose activity Area Existing And Proposed Land Use Map City of Dubuque Summary of Bonded Indebtedness - Fiscal Year 2002-2003 Dale Nel Amount Principal Principal Inlerelt Principal Year of · Delcrlpll~n of interest o! Outstanding Due 7.t-02 Due 7-1-02 Outstaudlng Final Issue Rata Islue July 1.2002 to 7-2.O3 to 7.2.03 July 1,2003 Paymellt 06-01-93. p5.01-04 Tax increment Bonds 616,0fi0 27,104 2002 'Sieged 04-15-97 4.4% ?Oft,000 618,000 *Cadagreph (HedzonlDenada,LLC) 12-01-99 8.8% 3fi0,0OO 333.101 29,318 28,fi82 303,78~ 2011 _other Loans - Revenue Backed 449.021 Water Lisa Te Silo B 07.01-97 lnlernal Loan 597,fi45 482,077 23,088 26.614 Landfill Agency to Sawer Fund 01-19-gB ' No ~taresl Loan . g88,750 438.750 438,7S0 2012 ATTACHMENT D CITY OF DUBUQUE, IOWA MEMORANDUM TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:Tax Increment Ordinance for the Quebecor Economic Develepment District October 25, 2002 Introduction This memorandum transmits for City Council review and adoption an ordinance establishing a tax increment financing district for the Quebecor Economic Development District. The proposed ordinance and associated certifications were prepared by the City's bond counsel and are attached to this memo. Background If the City Council approves an Urban Renewal Plan for the Quebecor Economic Development District at the November 4, 2002 public hearing, the attached ordinance will allow the use of tax increment financing as an economic development financing tool in the new district. Discussion Adoption of the tax increment ordinance is needed to allowthe use of tax increment financing in the new district. The ordinance authorizes the Cityto establish a special fund fdr the collection of a portion of the propertytax revenues generated by new development occurri!ng within the district. All taxable property located with the tax increment district will continue tb pay property taxes based upon the current tax levies and assessment valuations. Tax revenues collected in excess of the base amounts will be used to assist in financing development projects within the district, including the proposed Quebecor World Dubuque, Inc. project. Recommendation ' I recommend that the CityCouncil approve the tax increment financing ordinance for the Quebecor Economic Development District. Tax increment financing is an important tool for economic development and will be used to assist Quebecor's e~pansion and job creation activities. ~ Action Step The action step is for the City Council to approve the tax increment ordinance attached hereto. attachments F:\USERS\Pm~hre\WPDOCS\U R\QUEBECOR\tifordinan ce,mere.doc ORDINANCE NO. 88-02 AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE QUEBECOR ECONOMIC DEVELOPMENT DISTRICT, iN TIlE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT AND OTHER TAX1NG DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, iNCLUDiNG BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH SAID URBAN RENEWAL REDEVELOPMENT PROJECT~ WHEREAS, the City Council of the City of Dubuque, Iowa, after public notice and hearing as prescribed by law and pursuant to Resolution No. 594-o2 passed and approved on the 4th day of II'or.tuber ., 2002, adopted an Urban Renewal Plan (the "Urban Renewal Plan") for an urban renewal area known as the Quebecor Economic Development District (the "Urban Renewal Project Area"), which Urban Renewal Project Area includes the lots and parcels located within the area legally described as follows: 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 WHEREAS, expenditures and indebtedness are anticipated to be incurred by the City of Dubuque, Iowa in the future to finance urban renewal project activities carried out in furtherance of the objectives of the Urban Renewal Plan; and WHEREAS, the City Council of the City of Dubuque, Iowa desires to provide for the division of revenue from taxation in the Urban Renewal Project Area, as above described, in accordance with the provisions of Section 403.19 of the Code of Iowa, as amended. -1- NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the taxes levied on the taxable property in the Urban Renewal Project Area legally described in the preamble hereof, by and for the benefit of the State of Iowa, City of Dubuque, County of Dubuque, Dubuque Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided. Section 2. That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the tax'rog districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Project Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City of Dubuque certifies to the County Auditor the amount of loans, advances, indebtedness, or bonds payable from the division of property tax revenue described herein (which certification is directed to be made during the 2002 calendar year), shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid. Section 3. That portion of the taxes each year in excess of the base period taxes determined as provided in Section 2 of this Ordinance shall be allocated to and when collected be paid into a special tax increment fund of the City of Dubuque, Iowa hereby established, to pay the principal of and interest on loans, monies advanced to, indebtedness, whether funded, refunded, assumed or otherwise, including bonds or obligations issued under the authority of Section 403.9 or 403.12 of the Code of Iowa, as amended, incurred by the City of Dubuque, Iowa, to finance or refinance; in whole or in part, urban renewal projects undertaken within the Urban Renewal Project Area pursuant to the Urban Renewal Plan, except that taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the Urban Renewal Project Area without any limitation as hereinabove provided. Section 4. Unless or tmtil the total assessed valuation of the taxable property in the Urban Renewal Project Area exceeds the total assessed value of the taxable property in the Urban Renewal Project Area as shown by the assessment roll referred to in Section 2 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. -2- Section 5. At such time as the loans, advances, indebtedness, bonds and interest thereon of the City of Dubuque, Iowa referred to in Section 3 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property. Section 6. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the division of taxes from property within the Urban Renewal Project Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law, it shall not affect other provisions or application of this Ordinance which shall at all times be construed to fully invoke the provisions of Section 403.19 of the Code of Iowa with reference to the Urban Renewal Project Area and the territory contained therein. Section 7. This Ordinance shall be in effect after its final passage, approval and publication as provided by law. Terrance M. Duggan, Mayor ATTEST: Karen M. Chesterman Deputy City Clerk Read First Time: Sovenber 4 ., 2002 Vote for passage: ~1 Ayes (7-0) Read Second Time: ., 2002 Vote for passage: all Ayes (7-0) Read Third Time: November All Ayes (7-0) ., 2002 Vote for passage: PASSED AND APPROVED: November 4 2002 -3- hereby certify that the above and foregoing is a tree copy of Ordinance No. passed and approved by the City Council of said City at a meeting held _, 2002, signed by the Mayor on 2002, and published in the on 2002. City Clerk of the City of Dubuque, Iowa, (sE ) DCORNELLX339759\l\10422061 City Clerk, Dubuque, Iowa -4- ORDINANCE CERTiFICATE STATE OF IOWA ) )SS COUNTY OF DUBUQUE ) CIUR3.TXT 5/91 I certify that Ordinance Number , of which a tree cop,~ is attached, was duly adopted by the City Council of the-City of Dubuque, signed by the Mayor and published as required by law and is now in effect. I further certify that the consideration(s) and votes taken for the enactment of said Ordinance werei as follows: First consideration - Date: Vote: In favor , Opposed Absent or Abstain Second consideration - Date: Vote: In favor , Opposed Absent or Abstain Final Consideration - Date: Vote: In favor , Opposed Absent or Abstain 4. Publication Date: (Affidavit of Publication Attached) The Ordinance was not considered on any date after its first consideration as shown above when it did not receive an affirmative vote for passage. On the date of ,2002, the City Council adopted a motion for the suspension of the rule requiring separate consideration at three meetings and voted the final adoption of the Ordinance. The vote for suspension of the rules was by a three-fourths majority of the full City Council, voting in favor, opposed and absent, vacant or abstaining and was duly recorded. I further certify that each meeting for the consideration of the Ordinance was duly and publicly held, with a notice of the meeting and tentative agenda naming the consideration of the Ordinance timely posted and upon reasonable advance notice to the media as required by the Chapter 21 of the Code of Iowa and rules of the Council then governing. I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. of WITNESS my hand and the seal of said Municipality hereto affixed this __ ., 2002. day City Clerk, Dubuque, Iowa DCORNELL\339765~l \10422061 -2- CIUR1.TXT ~ : 12/94 CiTY CLERK'S CERTIFICATION TO COUNTY AUDITOR I hereby certify that attached hereto is a tree and correct copy of the Tax Increment Ordinance approved by the City Council of the City of Dubuque~ Iowa, designated as Ordinance Number ~ entitled: AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE QUEBECOR ECONOMIC DEVELOPMENT DISTRICT, IN TI-IE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT 0F PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH SAID URBAN RENEWAL REDEVELOPMENT PROJECT approved by the City Council on the day of on the day of the records of the undersigned. ,2002, and duly publiShed ,2002, the original of which ig on file in Dated this __ day of ,2002. (CITY SEAL) Clerk of the City of Dubuque, Iowa COUNTY AUDITOR'S CERTIFICATE Dubuque, Iowa, Ordinance Number day of above. I, , County Auditor of Dubuque County, Iowa, hereby certify that on the day of ,2002, there was filed in my office a true and correct copy of the Tax Increment Ordinance of the City of , approved by the City COuncil on the ,2002, all duly certified upon the form attached (COUNTY SEAL) DCORNELL~339773\l\1042206 l County Auditor of Dubuque County, Io~a COMPLETE ORDINANCE NO. AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITH]N THE QUEBECOR ECONOMIC DEMELOPMENT DISTRICT, IN THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYI~IENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED QR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTIONWITH, T SAID URBAN RENEWAL REDEVELOPMENT PROJECT. : WHEREAS~ the City Council of the City of Dubuque, Iowa, after public notice and hearing as prescribed by law and pursuant to Resolution No. passed and approved on the day of ,2002, adopted a~ Urban Renewal Plan (the "Urban Renewal Plan") for an urban renewal area known as the Quebecor Economic Development District (the "Urban Renewal Project Area"), which Urban Renewal Project Area includes the lots and parcels located within the area legally described as follows: 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 Frdnt Subdivision No. 5, all in the City of Dubuque, Dubuque County, Iowa and any adjoining public right-of-way WHEREAS, expenditures and indebtedness are anticipated to be incurred by the act~v~tms camed City of Dubuque, Iowa in the furore to finance urban renewal project ' i' ' ' out in furtherance of the objectives of the Urban Renewal Plan; and WHEREAS, the City Council of the City of Dubuque, Iowa desires to provide for the division of revenue from taxation in the Urban Renewal Project Area, las above described, in accordance with the provisions of Section 403~19 of the Code of Iowa, as amended. ~1- NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the taxes levied on the taxable property in the Urban Renewal Project Area legally described in the preamble hereof, by and for the benefit of the State of Iowa, City of Dubuque, County of Dubuque, Dubuque Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided. Section 2. That portion of the taxes which would be produced by ~he rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Project Area, as shown on the assessment roll as of January t of the calendar year preceding the £~rst calendar year in which the City of Dubuque certifies to the County AuditOr the amount of loans, advances, indebtedness, or bonds payable from the division of property tax revenue described herein (which certiftcation is directed to be made during the 2002 calendar year), shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid. Section 3. That portion of the taxes each year in excess of the bas~ period taxes determined as provided in Section 2 of this Ordinance shall be allocated tO and when collected be paid into a special tax increment fund of the City of Dubuque, Iowa hereby established, to pay the principal of and interest on loans, monies advanced to, indebtedness, whether funded, refunded, assumed or otherwise, including !bonds or obligations issued under the authority of Section 403.9 or 403.12 of the COde of Iowa, as amended, incurred by the City of Dubuque, Iowa, to finance or refinance, in whole or in part, urban renewal projects undertaken within the Urban Renewal Projeci Area pursuant to the Urban Renewal Plan, except that taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the Urban Renewal Project Area without any limitation as hereinabove provided. Section 4. Unless or until the total assessed valuation of the taxabt~ property in the Urban Renewal Project Area exceeds the total assessed value of the taXable property in the Urban Renewal Project Area as shown by the assessment roll referred to in Section 2 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respectiv~ taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. -2- Section 5. At such time as the loans, advances, indebtedness, bonds and interest thereon of the City of Dubuque, Iowa referred to in Section 3 hereof have been paid, all monies thereafter received fi:om taxes upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respective taxing dlstnctsim the same manner as taxes on ail other property. Section 6. All ordinances or parts of ordinances in conflict with th~ provisions of this Ordinance are hereby repealed. The provisions of this Ordinance arq intended and shall be construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the dlws~on of taxes from property wlthm the Urban Renewal Project Area as described above. In the event that any provision of this Ord'mance shall be determined to be contrary to law, it shall not affect other provisions or application of this Ordinance which shall at all times be construed to full~, invoke the provisions of Section 403.19 of the Code of Iowa with reference to the U~ ban Renewal Project Area and the territory contained therein. Section 7. This Ordinance shall be in effect after its final passage, approval and publication as provided by law. ATTEST: City Clerk Mayor Read First Time: ,2002 Vote for passage: Read Second Time: 2002 Vote for passage: Read Third Time: 2002 Vote for passage: PASSED AND APPROVED: ,2002 hereby certify that the above and foregoing is a tree copy of Ordinance No. passed and approved by the City Council of said City at a meeting held ~ 2002, signed by the Mayor on 2002, and published in the on 2002. , City Clerk of the City of Dubnque, Iowa, (SEA ) DCORNELLk339759\I\10422061 City Clerk, Dubuque, Iowa -4- COMPLETE MR. CIUR3.TXT 5/91 ORDINANCE CERTIFICATE STATE OF IOWA ) )SS COUNTY OF DUBUQUE ) I certify that Ordinance Number ~ of which a tree copy is attached, was duly adopted by the City Council of the City of Dubuque, signed by the Mayor and published as required by law and is now in effect. I further certify that th6 consideration(s) and votes taken for the enactment of said Ordinance wer~ as follows: First consideration - Date: Vote: In favor , Opposed Absent or Abstain Second consideration - Date: Vote: In favor , Opposed Absent or Abstain Final Consideration - Date: VOte: In favor , Opposed Absent or Abstain 4. Publication Date: (Affidavit of Publication Attached) The Ordinance was not considered on any date after its first consideration as shown above when it did not receive an affirmative vote for passage. On the date of ,2002, the City Council adopted a motion for the suspension of the role requiring separate consideration at three meetings and voted the final adoption of the Ordinance. The vote for suspension of the!roles was by a three-fourths majority of the full City Council, voting in favor, opposed and absent, vacant or abstaining and was duly recorded. I further certify that each meeting for the consideration of the Ordinance was duly and publicly held, with a notice of the meeting and tentative agenda naming the consideration of the Ordinance timely posted and upon reasonable advance notice to the media as required by the Chapter 21 of the Code of Iowa and roles of the Council then governing. I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated thereini that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. of WITNESS my hand and the seal of said Municipality hereto affixed this __ ,2002: day City Clerk, Dubuque, Iowa (SEAL) DCORNELL~339765~1\10422061 -2- COMPLETE AND RETURN TO CILTR1.TXT MR. NOTH 12/94 CITY CLERK'S CERTIFICATION TO COUNTY AUDITOR I hereby certify that attached hereto is a tree and correct copy of the Tax Increment Ordinance approved by the City Council of the City of Dubuque3 Iowa, designated as Ordinance Number , entitled: AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE QUEBECOR ECONOMIC DEVELOPMENT DISTRICT, IN THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT AND OTHER TAXING~' DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH SAID URBAN RENEWAL REDEVELOPMENT PROJECT approved by the City Council on the day of on the day of the records of the undersigned. ,2002, and duly published 2002, the original of which ia on file in Dated this day of ,2002. (CITY SEAL) Clerk of the City of Dubuque, Iowa COUNTY AUDITOR'S CERTIFICATE I, , County Auditor of Dubuque County, Iowa, hereby certify that on the day of ,2002, there was filed in my office a tree and correct copy of the Tax Increment Ordinance of the City of Dubuque, Iowa, Ordinance Number , approved by the City Council on the day of ,2002, all duly certified upon the form attached above. · (COUNTY SEAL) DCORNELLY339773\l \I 0422061 County Auditor of Dubuque County, Iowa AUDITOR'S COPY : CIUR1 TXT 12/94 CITY CLERK'S CERTIFICATION TO COUNTY AUDITOR I hereby certify that attached hereto is a true and correct copy of the Tax Increment Ordinance approved by the City Council of the City of Dubuque, Iowa, designated as Ordinance Number ~ entitled: AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE QUEBECOR ECONOMIC DEVELOPMENT DISTRICT, IN THE CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH SAID URBAN RENEWAL REDEVELOPMENT PROJECT approved by the City Council on the day of on the day of the records of the undersigned. ,2002, and duly published ,2002, the original of which is on file in Dated this day of ,2002. (CITY SEAL) Clerk of the City of Dubuque, Iowa COUNTY AUDITOR'S CERTIFICATE I, , County Auditor of Dubuque County, Iowa, hereby certify that on the day of ., 2002, there was filed in my office a true and correct copy of the Tax Increment Ordinance of the City of Dubuque, Iowa, Ordinance Number , approved by the City council on the day of ,2002, all duly certified upon the form attached above. (COUNTY SEAL) DCORNELLL339773\l\1042206l County Auditor of Dubuque County, Iowa CZ) (563) 5894210 office (563) 5894221 fax (563) 690-6678 TDD planning~cityofdubuque.org The Honorable Mayor and City Council Members City of Dubuque City Hall - 50 W. 13th Street Dubuque, IA 52001 RE:Proposed Urban Renewal Plan for the Quebecor Economic Development District October 28 2002 Dear Mayor and City Council Members: The City of Dubuque Long Range Planning Advisory Commission has reviewed the above-cited request. Discussion Staff spoke in favor of the request. Staff encouraged the Long Range Planning ,Advisory Commission to support the efforts of the City to provide development assistance to a local company expanding into space left vacant on Kerper Boulevard by McGraw-Hill's move to the new, west side industrial park. The use of the tax increment financing to support Quebecor s inveStment is only possible through Economic Development District designation and an approved Urban Renewal Plan. Staff reviewed the Commission's role is to determine if urban renewal plans are in conformance with the Comprehensive Plan. Staff indicated that the proposed plan will further the following goals taken from the City's Comprehensive Plan: Economic Development Goals: 1) To concentrate on retaining and expanding existing local businesses. 2) To strengthen the local tax base. Land Use and Urban Design Goals 1) To encourage redevelopment opportunities within the city in an effort to revitalize unused and underused property while ensuring the preservation of viable and affordable housing stock [no housing impacted]. There were no public comments. Service People Integrity Respon~ibi~ty Innovation Tozmlwork Proposed Urban Renewal Plan for QuebecorEconomic Development District October 28,2002 Page 2 The Long Range Planning Advisory Commission discussed the request, noting that the proposed Urban Renewal Plan for the Quebecor Economic Development District is in conformance with the general plan for the community. Recommendation By a vote of 6 to 0, the Long Range Planning Advisory Commission finds that the Quebecor Urban Renewal Plan is in conformance with the Comprehensive Plan. A simple majority vote is needed for the City Council to approve the reqdest. Respectfully submitted, David Wm. Rusk, Chairperson Long Range Planning Advisory Commission Attachments cc: Bill Baum, Economic Development Director 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.i Section 2. That the redevelopment of the Quebecor Economic D~velopment 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-Stdut 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 scoDe 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 th~ affected taxing entities. PASSED, APPROVED and ADOPTED this 16th day of September, 2002. / Ter'~n~~Magyoarn ATTF~ST: ~__~,,a,n~e F. Schneider City Clerk F:\USERS~Pmyhre\WPDOCS\UR\QUEBECOR\nec. res.doc CITY OF DUBUQUE, IOWA OFFICIAL NOTICE NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on November 4, 2002, at 6:30 p.m., in the Public Library Auditorium, 360 west 11th Street, to consider a Resolution of Necessity finding that the creation of a new Quebecor Economic Development District consisting of property leased by Quebecer World Dubuque, Inc., located on Kerper Boulevard is necessary and appropriat~ under Iowa's urban renewal statute. (Copy of supporting documents are on file in the City Clerk's Office and may be viewed during normal working hours.) ' Written comments regarding the above designation may be submitted to ~he City Clerk's Office on or before said time of public hearing. At said time and place of public hearing all interested citizens and parties will be given an opportunity to be heard for or against said designation. ~ Any visual or hearing impaired persons needing special asSistance or pe~'sons with special accessibility needs should contact the City Clerk's Office at (563)1589-4120 or TDD (563) 690-6678 at least 48 hours prior to the meeting. Jeanne F. Schneider, CMC City Clerk MEMORANDUM 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 a[s a special economic development tool. The proposed economic development area described in the attached Resblution of Necessity is currently zoned Heavy Industrial and will provide incentives for the expansion of Quebecor World Dubuque, Inc.'s printing and product On ope~rat~on,' ' which' will create 106 new jobs with an average pay of $14.63 per ho, ir, 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 Cit~ Council approval. tc ael C Van Mdhgen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM ,September 6, 2002 TO: Michael Van Milligen, City Manager FROM: William Baum, Economic Development Directo~ SUBJECT: Resolution of Necessity Urban Renewal Plan for Quebecor Economic DeveloPment District Introduction This memorandum presents for City Council consideration a Resolution bf 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 ~mprovements 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, blighte or economic development area and that the rehabilitation, conservation, redevelopme ~t, development, or a combination thereof, of the area is necessary in the interest of the p~ ~blic health, safety or welfare of the residents of the city. After such resolution; an urban ret ewal plan must be adopted by the municipality. The Iowa Code defines an economic development area as, "an area of ~ municipality designated by the local governing body as appropriate for commercial anld 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 Re solution of Necessity is currently zoned Heavy Industrial and will provide incentives 'or the expansion of Quebecor World Dubuque, Inc.'s printing and production operation in =~;pace formerly occupied by McGraw-Hill for warehousing and distribution. McGraw-Hill las moved into its new 320,000 square foot facility located in the Dubuque Industrial Cente~ 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 requiired by Chapter 403. along with a consultation process that involves all affected t~axing entities. Those taxing entities, the County, School Board and community college, ihave an opportunity to suggest modifications to the proposed division of revenue igenerated in the economic development district prior to the required public hearing oni 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 peridd 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 Nil be able to use the benefits of tax increment financing to assist in the redevelopmen~ 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 incremen~t 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:\USERS~Pm~h re\WPDOCS\UR\QU EBECOR\necres.mem.doc RESOLUTION NO. 571-02 RESOLUTION FINDING THAT THE DESIGNATION OF THE ARC URBAN REVITALIZATION PLAN IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY AND WELFARE OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA AND PROVIDING FOR A PUBLIC HEARING THEREON. Whereas, the City Council of the City of Dubuque finds that property in the ARC Urban Revitalization district is appropriate for construction of housing and residential development; and Whereas, the City's Long Range Planning Advisory Commission has reviewed the proposed plan and found the plan provides incentives for utilizing vacant paircels for affordable housing; and Whereas, Chapter 404 of the Code of Iowa provides for the establishment of an urban revitalization area for such properties following a public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the development of the areas described in the attached ARC Urban Revitalization Plan is found to be necessary in the interest of the public health, safety and welfare of the residents of the City, to wit: Section 2. That the ARC Urban Revitalization Plan as proposed meets the eligibility criteria of Chapter 404.1 of the Code of Iowa, 2001. Section 3. That the City Council has found good cause to waive the 30-day notification period. Section 4. That the City Clerk is directed to publish notice of a public hearing on the aforementioned Urban Revitalization Area Plans to be held on November 4, 2002 at 6:30 p.m. in the Carnegie Stout Library Auditorium, 360 West 11th Street, Dubuque, Iowa 52001; and Section 5. That the ARC Urban Revitalization Plan shall be a matter of record and shall be available for pubic inspection in the office of the City Clerk at City Hall, 50 West 13th Street, Dubuque, Iowa Passed, approved and adopted this 21 st day of Octobe~ 2002. ~ ,'~ T~e~rrance M. D u~3~gan ,,~Jr Attest: ~/~anne F. Schneider, City Clerk F:~Users~,AKRAMER~,Urban Revite~ARC UR~ARC UR Res.doc