Legislative Ltrs TIF Fin HF686City Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
April 28, 2003
VIA E-mail and
1st Class Mail
mike_connolly@legis.state.ia.us
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
Re:Tax Increment Financing (TIF) Legislation
HF686
Dear Senator Connolly:
Recently the House passed HF 686 regarding changes to Tax Increment Financing.
Included within this legislation was the change to a 5% cap based upon assessed value
instead of taxable value. It is critical that any legislation passed by the Senate have
similar language. TIF generated from a project based upon assessable value is a truer
reflection of the economic impact of the project, and provides more flexibility to each
community.
Also included within HF 686 is the elimination of property tax abatement for retail
projects in any TIF district. While we would support the elimination of such abatement
in an economic development TIF district, this is often a critical component for a slum
and blight TIF district. In Dubuque, like in many other Iowa communities, a slum and
blight TIF district is located in our downtown area. As you know, the face of downtowns
have shifted and we find ourselves challenged with retaining a vibrant and active city
center. This shift has resulted in downtowns serving as niche, retail centers in order to
stay competitive with other parts of our community. Once again TIF is an important
financing tool that can make a difference in a project in downtown. TIF allows the City to
keep its debt service Iow by providing payments to compames, who in turn borrow the
funds for the project instead of the municipality.
I know you realize the impact Tax Increment Financing (TIF) has had on Dubuque.
Since Dubuque began to use TIF as one piece of a financial package for business
Senator Mike Connolly
April 28, 2003
Page 2
retention, expansion and recruitment, economic development in our community has
grown. To date over 1,310 jobs have been retained in our community and an estimated
762 new jobs will be created. In addition, total community assessed valuation has
increased over 70% in the last twelve years, to $1.659 billion, much of this valuation is
the direct results of projects that were assisted with TIF. I can assure you that without
financial tools, such as TIF, these jobs and value to our community would never have
been realized.
I hope that this information, along with our previous correspondence, conveys to you
how effective TIF has been in generating economic development and jobs for Dubuque.
Please join others in voting yes for legislation supporting TIF, including TIF for retail
projects in areas designated as slum and blight.
Thank you for your continued support!
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:cs
cc: Mayor Terry Duggan
Dubuque City Council
Tom Bredeweg, Executive Director, Iowa League of Cities
Susan Judkins, Director of Governmental Affairs, Iowa League of Cities
Steward Sandstrom, President & CEO, Dubuque Area Chamber of Commerce
Rick Dickinson, Executive Director, Greater Dubuq ae Development Corporation
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Bill Baum, Economic Development Director
Pauline Joyce, Administrative Services Manager
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
The Honorable Julie Hosch
Iowa State Senator
22852 Butterfield Road
Cascade IA 52033
The Honorable Roger Stewart
Iowa State Senator
3936 317 Avenue
Preston, IA 52069
City Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 589-4110 office
(563) 589-4149 fax
ctyragr @cityofdubuque.org
April 28, 2003
VIA E-mail and
1st Class Mail
pam_jochum@legis.state.ia.us
The Honomble Pam Jochum
Iowa State Representative
2368 Jackson
Dubuque, lA 52001
Re: HF 686
Dear Representative Jochum:
I just wanted to take a moment to thank you for your recent vote in favor of HF 686
related to Tax Increment Financing (TIF). Since Dubuque began to use TIF as one
piece of a financial package for business retention, expansion and recruitment,
economic development in our community has grown. To date over 1,310 jobs have
been retained in our community and an estimated 762 new jobs will be created. In
addition, total community assessed valuation has increased over 70% in the last twelve
years, to $1.659 billion, much of this valuation is the direct results of projects that were
assisted with TIF. I can assure you that without financial tools, such as TIF, these jobs
and value to our community would never have been realized.
However, included within HF 686 is the elimination of property tax abatement for retail
projects in any TIF district. While we would support the elimination of such abatement
in an economic development TIF district, this is often a critical component for a slum
and blight TIF district. In Dubuque, like in many other Iowa communities, a slum and
blight TIF district is located in our downtown area. As you know, the face of downtowns
have shifted and we find ourselves challenged with retaining a vibrant and active city
center. This shift has resulted in downtowns serving as niche, retail centers in order to
stay competitive with other parts of our community. Once again, TIF and in particular,
the use of property tax abatement, is an important financing tool that can make a
difference in a project in downtown. Property tax abatement allows the City to keep its
debt service Iow by providing payments to companies, who in turn borrow the funds for
the project instead of the municipality. This is also effective for projects that have little
building improvements but will create high paying jobs.
Representative Pam Jochum
April 28, 2003
Page 2
I hope that this information, along with our previous correspondence, conveys to you
how effective TIF has been in generating economic development and jobs for Dubuque.
Please encourage others in voting yes for legislation supporting TIF, including TIF for
retail projects in areas designated as slum and blight.
Thank you for your continued support!
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:cs
cc: Mayor Terry Duggan
Dubuque City Council
Tom Bredeweg, Executive Director, Iowa League of Cities
Susan Judkins, Director of Governmental Affairs, Iowa League of Cities
Steward Sandstrom, President & CEO, Dubuque Area Chamber of Commerce
Rick Dickinson, Executive Director, Greater Dubuque Development Corporation
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Bill Baum, Economic Development Director
Pauline Joyce, Administrative Services Manager
The Honorable Pam Jochum
Iowa State Representative
2368 Jackson
Dubuque, lA 52001
The Honorable Gene Manternach
Iowa State Representative
9608 Maple Road
Cascade, IA 52033
The Honorable Pat Murphy
Iowa State Representative
155 N. Grandview Avenue
Dubuque, IA 52001
The Honorable Steven Lukan
Iowa State Representative
7365 Columbus Street
New Vienna IA 52065