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Expansion [consolidation] of the Urban Revitalization District / Development of Plan Copyrighted June 17, 2019 City of Dubuque Action Items # 4. ITEM TITLE: Expansion of the Urban Revitalization District SUMMARY: City Manager recommending approval to develop a plan for expansion of the Urban Revitalization District program that would be submitted for City Council consideration at a future City Council meeting. RESOLUTION Approving development of a plan for a new Urban Revitalization District SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type Expansion of Urban Revitalization District-MVM Memo City Manager Memo Expansion of Urban revitalization District Staff Memo Resolution Resolutions Current Urban Revitalization District Map Supporting Documentation CHANGE Brochure Supporting Documentation THE CTTY OF Dubuque �" ui���eNe�ary DUB E 'il��i;' Masterpiece on the Mississippi Z°°' Z°'Z 2013 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Expansion of Urban Revitalization District DATE: June 10, 2019 lowa Code Chapter 404.01 lists five reasons for which a city may establish urban revitalization plans. They are: 1) the existence of numerous buildings that are dilapidated or deteriorated; 2) the need for preservation and restoration of buildings due to their historic significance; 3) the area is appropriated as an economic development region as defined in lowa Code 403.17; 4) the need for public improvements related to housing; and 5) the encouragement of house and residential development, or construction of housing and residential development, including single or multi-family housing. The City's Urban Revitalization Program offers a property tax exemption for interior and exterior improvements that increase the tax assessment, and in turn the property taxes, for residential property and commercial property. Residential properties may receive a ten-year exemption from the property tax increase due to the improvements and commercial properties may receive a three-year exemption. Maintenance is not included in this program. Presently, Upper Main, Jackson Park, Washington Neighborhood, West 11th, Langworthy, Cathedral, Old Main and a few others are part of the urban revitalization area. Housing and Community Development Director Alexis Steger recommends City Council approval to develop a plan for expansion of the Urban Revitalization District program that would be submitted for City Council consideration at a future City Council meeting. In furtherance of the CHANGE program, the expansion would help leverage the city investments by creating another way to encourage private investment, and also help partners like Community Housing Initiatives (CHI), True North, and Affordable Housing Network, Inc. (AHNI) to sell properties they have recently renovated for low income homeownership. Applications received from the current Urban Revitalization Districts demonstrate that the most common improvements to properties are visible from the exterior of the property, such as a new roof, new windows, and new siding/exterior paint. Allowing homeowners to invest in their properties without the burden of paying additional taxes on those improvements, is an extra incentive to revitalize neighborhoods. Private investment will be needed to truly transform neighborhoods under the CHANGE initiative, and evaluating the expansion of the current Urban Revitalization Districts is the first step to encouraging private investment. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�.1�t��'�+�1 �Gv►, /����t�ts�. Mic ael C. Van Milligen '� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alexis M. Steger, Housing and Community Development Director 2 THE CTTY OF Dubuque �" ui���eNe�ary DUB E 'il��i;' Masterpiece on the Mississippi Z°°' Z°'Z 2013 2017 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Expansion of Urban Revitalization District DATE: June 6, 2019 Introduction The purpose of this memorandum is to propose an expansion of the Urban Revitalization District to include new areas while also combining the existing districts into one. With Council approval, staff will work on the development of a new Urban Revitalization Plan. Background lowa Code Chapter 404.01 lists five reasons for which a city may establish urban revitalization plans. They are: 1) the existence of numerous buildings that are dilapidated or deteriorated; 2) the need for preservation and restoration of buildings due to their historic significance; 3) the area is appropriated as an economic development region as defined in lowa Code 403.17); 4) the need for public improvements related to housing; and 5) the encouragement of house and residential development, or construction of housing and residential development, including single or multi-family housing. The City's Urban Revitalization Program offers a property tax exemption for interior and exterior improvements that increase the tax assessment, and in turn the property taxes, for residential property and commercial property. Residential properties may receive a ten-year exemption from the property tax increase due to the improvements and commercial properties may receive a three-year exemption. Maintenance is not included in this program. Presently, Upper Main, Jackson Park, Washington Neighborhood, West 11�n Langworthy, Cathedral, Old Main and a few others are part of the urban revitalization area. Discussion In furtherance of the CHANGE program (attached brochure), this expansion would help leverage the city investments by creating another way to enhance private investment, and also help partners like Community Housing Initiatives (CHI), True North, and Affordable Housing Network, Inc. (AHNI) to sell properties they have recently renovated. Neighborhoods will benefit from partner rehabilitation of dilapidated housing; however, a greater impact can be realized if property owners can improve their properties in the same neighborhoods without additional tax burden placed on the homeowner based on an increased assessed value of their property. Applications received from the current Urban Revitalization Districts demonstrate that the most common improvements to properties are visible from the exterior of the property, such as a new roof, new windows, and new siding/exterior paint. Allowing homeowners to invest in their properties without the burden of paying additional taxes on those improvements, is an extra incentive to revitalize neighborhoods. Private investment will be needed to truly transform neighborhoods under the CHANGE initiative, and evaluating the expansion of the current Urban Revitalization Districts is the first step to encouraging private investment. Recommendation I respectfully request City Council approval to develop a plan for an expanded Urban Revitalization District. 2 Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St., Suite 312, Telephone: 563-690-6072 Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: (563) 589-4100 RESOLUTION NO. 240-19 APPROVING A DEVELOPMENT OF A PLAN FOR A NEW URBAN REVITALIZATION DISTRICT Whereas, the City Council approves the development of a plan for a new Urban Revitalization District that would expand the existing districts. The Urban Revitalization Program offers a property tax exemption for interior and exterior improvements that increase the tax assessment, and in turn the property taxes, for residential property and commercial property. Residential properties may receive a ten-year exemption from the property tax increase due to the improvements and commercial properties may receive a three-year exemption to encourage improvements long term property maintenance in these neighborhoods. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Direct City staff to develop a plan for a new urban revitalization district for City Council review and consideration. Passed, approved and adopted this 17th day of June 2019. Attest: Kevi S. Firnstahl, City Clerk Roy D. 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'�/.cc� � �1` � ,. , . r � �� � ��. �_ - � .� ., Urban Revitalization Districts _ ��-' ,��` �1 ��y�, � � i 1;-,.3[ 4 ' Cathedral " q . �`�(�°'`�� � ��� � � � ' � � f -p I��l� 'j}��� :\ '� __Ji /,l . � lackson �l � ) r � I lones St � � � r � Kunkel&Asmciates, ���� ��-� � � � J � � � Lange Estates ' ��' J�� +' f j � � Langworthy . .r '�. �p��� j' } � Manasseh House � ,_ / � . � Old Main 7 . � ��� --- Paragon Square � � � _ �_ I i � � Salvia House � . UpperMain ' � I s' -- �� M Washington Neighborhood � 9 West 11th , _ Dubuque City limits r I f I � . n�ecr�nue u°� ,� DUB��' ����I� .M1AinG•p�irrr un thr.Mid.i.vipyi � - �I � , ■■ = ■■ _ CHANGE - _ � , _ ,; . . . _ � . _ _ . . �� �=, _ � , . - � i � � � i � , i c_____ � _ .� - - _ - - � - -- �' _'- - �� 'k � � ------^ - f � � - . s � - �, 1 � 1 - � 1 _ i�- `{ - �T� � �° Ia��- _ �� � _ �� ' ,_ �,� � � � � � ����� - - �� - �- ��,� ry �� 4— , ��.—A� �: I � I' � � � II �� ��I�' ��� II. 'I i� II . ' I �I�I� ��4.. _ _ , �. i!• + — lil6 IIII�� II I���l� �I`1�X ■ y,�u+ \� . p � ! �� ` � t 'k ".��I y .'.�'�i. T,� 'a. . .� . � 8 � . � �� i�_M, . . . , a�a�.>� .� � � The CHANGE Initiative is a campaign of neighborhood revitalization Marginal PropertyAcquisition: and an extension of sustainability to specifically address marginal $5.04 million, 120 housing units properties, affordable housing, and homeownership. (13unitscompletedtodate) Lead & Healthy Homes: MISSI ON: Building community enrichment through a collective/collaborative impact of �3.2 fI11II1011, 129 housing units programs, partnerships, and services designed to provide neighborhood economic and social resiliency. (83 units completed to date) Bee Branch Healthy Homes TARGET OUTCOMES: Increased flood protection; increased home ownership; ReslllenCy Program: deconcentration of low-income housing; reduction in number of households in poverty; �$.4 fIIIII1011, 277 units reduction in number of blighted properties; stabilization and increase of property values; increase in quality, affordable housing stock; reduction in lead hazards; greater landlord (6 units completed to date) and tenant responsibility; and an increase in first-time homeowners. Housing Rehabilitation & Home Ownership: PARTNERS: $3.93 million, 200 units • Communit Foundatlon of Greater Dubuque • Greater Dubuque Development Corporatlon (65 unlfS C0111p�2f2d f0 d2f2� • Communit Housing Initiatives, Inc. • Habltat for Humanit, Inc. • Dubuque Initlatives • lowa DepartmentofTransportatlon `�Q� �'`�Q`�`� �Ota�: • Dubuque Main Street • Northeast lowa CommunitCollege (NICC) • Dubuque's True North Corporation • Opportunity Dubuque �20.6 fT11II1011 to leverage tens of millions • East centrai intergo�ernmentai nsso� • Pr;,,ate de„eiopers&generai �ontra�tors of dollars in private investments to improve • FourMoundsHEARTProgram • VIsltingNursesAssoclatlon ��,rj ������� ���t� THECITYOF Housing & Community Development Department � DUB E 563.589.4239 � www.cityofdubuque.org/DBQChange E�UAL HOUSING Masterpiece on the Mississippi OPPORTUNITY CHANGE Initiative Goals PROPERTY MAINTENANCE Beyo nd H o usi ng U n its A new International Property Maintenance Code (IPMC)went into effect in 2016 and, through increased enforcement and higher standards for safety and maintenance, is improving the quality of SUPPORT rental housing stock in Dubuque. The new property maintenance training and code applies to all property types and is primarily used by the City's R education programs Housing and Community Development Department for routinely for residents scheduled rental licensing inspections and housing complaint inspections. The City's Building Services Department also utilizes the code for vacant and abandoned property inspections. The code provides a standard for property maintenance and establishes minimum requirements for light, ventilation, and occupancy limitations; plumbing facilities and fixture requirements; mechanical and electrical requirements; and fire safety requirements in existing structures and properties. For more information on the IPMC, visit job opportunities www.cityofdubuque.org/ipmc. In 2018, the Housing and Community Development Department will CREATE RESILIENCY PLAN for implement a newthree-tiered inspection policy based on categories individualsand family mem6ers of operation or management of rental properties. The new policy will � �0 0 to sustain themselves and their enable inspectors to focus on problem and nuisance properties in a �� housing strucmres more timely and efficient manner. A fifth Rental Housing Inspector position will be added to City staff. BEE BRANCH HEALTHY HOMES RESILIENCY PROGRAM This program supports the significant progress made on the$219 million Bee Branch Watershed Flood Mitigation Project: • Includes $8.4 million* in the form of forgivable loans including owner- occupied homes, single-unit rentals, and small, multi-family residential units. • Funds will be awarded to properties where low-to moderate-income residents reside and used to make repairs and implement on-site stormwater management principles to decrease enuironmental health and safety issues from flooding. • Many of these properties will abut the new peruious paver alleys (green alleys.) • Collaborates with individuals and families to facilitate developing a resiliency plan that will assist them in recovering from the effects of flood-related problems and prevent future *In 2016, Dubuque was issues. awarded$31.5 million in . Can assist residents with developing a Personal Resiliency Plan. HUD disaster resiliency funds . May help identify training opportunities and community resources for improving future for the eee eranch Healthy personal development, employment, and developing family goals, as well as connecting Homes Resiliency Program them with agencies and not-for-profits that provide assistance. and stormwater infrastructure improvements. • Will assist each individual or family with a strategy to prevent, prepare for, and cope with natural disasters. / For more information on the Bee Branch Healthy Homes Resiliency Program: 56? que.org I www.cityc �buque . � _--_ ,�,, _ :�--�.� , HOUSING REHABILITATION & - �` -=� HOM E OWN ERSH I P PROGRAMS ! �_�` ��; � �� � '�'=�� ,�. ,- : `� ; ?'�`�� 2010-2015: $2.8 million invested to improve 203 properties in the � � �'� : &ti ��,,, � Washington Neighborhood and Bee Branch Project Corridor ,.,��-��; x ���~ c��, �: �:-.: ti � ;.�'_. ��„� � �s f,,' ��� �Y . � ....�.�..--� ,.�.� 2016-2022: An additional $3.93 million invested to improve 200 properties • Accessibility Rehabilitation Program • Homeowner Rehabilitation Loan Programs • Home Repair Loan • Housing Choice Voucher Home Ownership Program • HOME (Home Ownership Made Easy)Workshop • OATH (Officer at Home) Incentive Program • Homebuyer Programs The lead poisoning rate in Dubuque is more than double the national average. Dubuque's Lead Hazard Control & � Healthy Homes Program utilizes federal funds to provide � i � ' �R ,,: � � financial assistance in the form of forgivable loans to low-and � • � • � � ' � � � moderate-income homeowners and rental property owners to -,�. � :+ .... r ��_=`� reduce lead-based paint hazards and other health and safety ' � � ' ' ' � ' issues in homes with young children. � � `�;�� � C D B G Community Development MARGINAL PROPERTY ACQUISITION Block Grant One hundred twenry properties will be acquired over the next These funds are used for eligible activities in six years and renovated and sold, mainly for single-family home the areas of housing, economic development, ownership. This will decrease neighborhood density and remove neighborhood and public services, public facilities, blighted conditions. At the same time, the Ciry will be seeking and planning/administration. partners to develop affordable, quality rental units throughout the communiry. , ,� ,- DOWNTOWN HOUSING INCENTIVE PROGRAM �� � The City of Dubuque Economic Development Department offers incentives for projects that assist in the � � ,, creation of new, market-rate downtown rental and/or owner-occupied residential units within the Greater F� ` � � ' Downtown Urban Renewal District. This program,which is limited to rehabilitations of existing structures ��!�, � ` � that create at least two new housing units, can provide up to$10,000 in assistance per residential unit. ; � �• � ! Preference is given to projects that also utilize federal and/or state historic tax credits. For additional -fl�� — — — � .: ,� '... information, call 563.589.4393 or visit www.cityofdubuque.org/econdev. PARTNERS FOR PLACES The City of Dubuque has entered into a collaborative relationship with lowa State University Extension and Outreach In the summer of 2017, the City of Dubuque and (ISUEO) to assist the City in the economic revitalization Community Foundation of Greater Dubuque received a of the Central Avenue Corridor(CAC) through community Partners for Places Equity Grant from The Funders Network engagement, educational outreach, and CAC community- for Smart Growth and Livable Communities and the Urban informed storefront and Sustainability Directors Network. The purpose of the streetscape design. This multi- grant is to build the skills, knowledge, and capacity of City , phase, multi-year project began departments and non-profit organizations located in the r1r� ���r � in early 2016. Participants Washington Neighborhood so they can better engage with � y/� u , include CAC stakeholders traditionally unengaged and underrepresented populations �� � ' (business owners, employees, in our community. Next steps for the group will include „��', � patrons, residents, landlords, development and completion of projects and events that will �� "-r , ,' A . social service agencies, build connections in the neighborhood, additional trainings �' �. community leaders), the City of for staff regarding outreach and facilitation strategies, and ,��� - Dubuque, and its partners. development of City department plans to improve equitable delivery of services. HOUSING TAX INCREMENT FINANCING (TIF) Dubuque's four new Housing TIF Districts are required to dedicate 38.1% of revenues to affordable housing From 2016-2022, these Housing TIF districts are projected to generate$3.9 million supporting the CHANGE program and other initiatives. DUBUQUE'S NEW COMPREHENSIVE PLAN � Just as the Imagine Dubuque Comprehensive Plan was built on community participation, partnerships and collaboration will be I M AG I N E the keyto implementingthe plan recommendations Measuring successful plan implementation must focus on outcomes to make • D u B u C Dubuque a more viable, livable, and equitable community. • • � • VIABLE•LIVABLE•EQUITABLE - ' - ' • ' • ' - ' ' - - ' • - . � - � - � � � � . � . 2037: A CAII TOACTION � � , , , , - , �. .. - , , , - DUBUQUE'S TRUE NORTH Greater Dubuque Development Corporation focuses on six pillars of its mission: business retention and expansion, workforce solutions, national marketing, sustainable innovations, StartUp Dubuque, and Dubuque's True North. Announced in July 2017 as part of the /� Greater Dubuque 2022 Campaign Goals, Finding Dubuque's True North was added by Greater Dubuque to bring transformative change, in partnership with the Dubuque's True North Corporation, to Dubuque's vibrant, historic neighborhoods on the city's D U B U Q U E 'S � North End. It will be a collaborative partnership of public and private entities that will continue to bring new energy to the area. The program goals include removal 'y of slum and blight, fostering of single-family home ownership, redevelopment of �� ,�r Central Avenue, and brownfields redevelopment for new businesses. For more � information on this initiative, visit www.greaterdubuque.org or call 563.5579049. Rev. 1/31/18