Garfield Pl Urban Plan AmendedMEMORANDUM
December 23, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amended and Restated Garfield Place Urban Revitalization Area Plan
Housing and Community Development Department Director David Harris recommends
that the City Council approve an amendment and restatement to the existing Garfield
Place Urban Revitalization Area Plan. The amended plan will add two adjoining lots to
allow property tax exemption for a proposed 12-mom single-mom occupancy (SRO)
facility at 513 Garfield Avenue and extends the duration of the plan.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Depar[ment Director
Ti-~; (~ITY OF ~
MEMORANDUM
December 15, 2003
TO: Michael~.C,\Van Milligen, City Manager
FROM: David~is, Housing and Community Development Departn~nt
SUBJECT: Amended and Restated Garfield Place Urban Revitalization Area Plan
introduction
This memorandum recommends that the City Council review and approve a resolution to
amend and restate the existing Garfield Place Urban Revitalization Area Plan. The
amended plan will add two adjoining lots to allow property tax exemption for a proposed
12-room single-room occupancy (SRO) facility at 513 Garfield Avenue and extends the
duration of the plan.
Background
Urban Revitalization. Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes
cities to designate areas as urban revitalization areas. Improvements to qualified real
estate within these designated areas may receive a total or partial exemption from property
taxes for a specified number of years. The exemptions are intended to stimulate private
investment by reducing tax increases that usually accompany property improvements.
This additional private investment provides a !ong-term increase or stabilization in the
area's tax basel enhances the viability of revitalization areas and/or supports important city
objectives such as historic preservation, economic development and affordable housing
development
In order to implement the provisions of Chapter 404, the City must prepare a revitalization
plan for each designated area and hold at least one public headng after proper notice.
The law mandates specific criteria and procedures that must be followed.
The City Council approved the Garfield Place Urban Revitalization Area Plan on October
20, 2000. The plan provided for urban revitalization tax exemption for the construction of a
19-unit single room occupancy (SRO) building at 511 Garfield Avenue, The plan was
amended on June 7, 2002 to include the property at 513 Garfield to allow construction of
ar)other 19-unit SRO.
Discussion
The amendment adds 515 and 521Garfield to the Garfield Place Urban Revitalization Area
and extends the duration of the plan for 3 years. The proposed project includes Demolition
of a derelict single family home and construction of a third SRO with rooms for 12 Iow-
moderate income men at 521 Garfield Avenue. 515 Garfield contains a single family home
which will remain as the home for the project manager and no tax exemption will be
provided. The owner, Davis Place LLC, has applied for an Iowa Department of Economic
Development for HOME Program funds for a $575,000 forgivable loan. They are
requesting the urban revitalization tax exemption to ensure the feasibility of the project.
There are currently 19 residents at 511 Garfield Avenue and 19 residents at 513 Garfield.
One resident residing at 521 Garfield will be vacating the premises and is not requesting
relocation assistance.
The amended and restated plan will add the adjoining lots to the district and 'allows new
construction, an improvement for which property tax exemption will be requested. The
original Garfield Place Urban Revitalization Area Plan also providedfor new construction,
which has been completed and tax exemption received.
Chapter 404 provides for a public comment period prior to the adoption of an urban
revitalization plan~ Additionally, the City's Code of ordinances requires comment by the
Long Range Planning Commission on any urban revitalization pian. Based upon these
requirements, the Council is requested to set a public hearing for February 16 2004 that
will provide a 30 day comment period on the amended plan. The Long Range Planning
Commission will review the plan at their January 21st meeting. The property owner and
tenants will be notified.
Atthe public hearing, the Council will be able to approve the plan and pass a first reading
of an ordinance designating the property as an urban revitalization area. A second hearing
must be held only if the City receives within the thirty days a valid petition from at least ten
percent of owners or tenants within the designated revitalization area. If such a petition is
submiffed, the City Councii may set a second public hearing and proceed to a~ upon the
proposed Plan following that hearing. If no such petition is presented, the Ci~ Council may
simply adopt the proposed plan following the thirty-day period.
Recommendation
I recommend that the City Council approve the attached resolution directing the amended
and restated Garfield Place Urban Revitalization Plan to be set a public hearing .February
16 2004. At the public hearing an ordinance can be adopted which directs the City Clerk
to publish the ordinance following the 30 day period if no valid petition for a second
hearing is filed. This will expedite the process for the developer.
Action Requested
The Action Step is for the Ci~' Council to adopt the attached resolution.
Prepared by: Agg'e Tauke, Community Development Specialist
F:\Users",ATAUKE\Urban Rede\Garfield Place\GarfPlace.extmemo.03.doc
RESOLUTION NO. 16-04
A RESOLUTION SETTING A PUBLIC HEARING ON A PROPOSAL TO
AMEND CITY OF DUBUQUE ORDINANCE 38-2002 ESTABLISHING THE
AMENDED AND RESTATED GARFIELD PLACE URBAN REVITALIZATION
AREA AS AN URBAN REVITALIZATION AREA PURSUANT TO CHAPTER
404 OF THE CODE OF IOWA.
Whereas, the City of Dubuque Ordinance No. 82-2000 established the Garfield
Place Urban Revitalization Area; and
Whereas. the City of Dubuque Ordinance No. 38-3002 established the Amended
and Restated Garfield Place Urban Revitalization Area; and
Whereas, two 19 room single room occupancy (SRO) have been constructed at
511 and 513 Garfield in the Garfield Place Urban Revitalization Area; and
Whereas, due to the request by Davis Place LLC, owner, to extend the district
and construct another 12 room single room occupancy (SRO), an amendment to the
Garfield Place Urban Revitalization Area Plan is necessary; and
Whereas, the area proposed for the amended and restated designation under the
Urban Revitalization Act is an economic development area appropriate for housing and
residential development as defined by Section 403.17 of the Iowa Code; and
Whereas, Chapter 404 of the Code of Iowa provides that a public hearing shall
be held on any proposed amendment of an Urban Revitalization Area Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the rehabilitation, redevelopment and economic development of
the hereinafter described area is found to be necessary in the interest of the public
health, safety and welfare of the residents of the City, to wit:
Lot 1, Lot 2 and Lot 3 of Davis Place II and Lot 2 Schade Subdivision in the
County of Dubuque, City of Dubuque, Iowa, according to the recorded plat
thereof, commonly known as 511,513, 515 and 521 Garfield.
Section 2. That the Amended and Restated Garfield Place Urban Revitalization
Area Plan as proposed meets the eligibility criteria of Chapter 404.1 of the Code of
Iowa, 2001.
Section 3. That the proposed Amended and Restated Garfield Place Urban
Revitalization Area Plan attached hereto, 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.
Section 4. That the City is authorized and directed to submit the Amended and
Restated Garfield Place Urban Revitalization Area Plan to the City's Long Range
Planning Advisory Commission for review and comment; and
Section 5. That the City Clerk is directed to publish notice of a public headng on
the Amended and Restated Garfield Place Urban Revitalization Area Plan to be held
on February 16, 2004 at 6:30 p.m. in the Carnegie Stout Library Auditorium, 360 West
11th Street, Dubuque, Iowa 52001; and
Section 6. That the owners of record and tenants living within the proposed area
will be notified by the thirtieth day prior to the public hearing.
Terrance M. Duggan, Mayor
Attest: Jeanne F. Schneider, City Clerk
Passed, approved and adopted this 5th day of January, 2004.
F:~Users~ATAUKE~Urban Revite\Gar~eld Place\GadieldPlaceExtRes.04.doc
Garfield Place
Urban Revitalization Area Plan
Amended and Restated January 2004
Introduction
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404, authorizes
cities to designate an area of the City as a revitalization area~ Improvements to
qualified real estate within these designated areas may then become eligible for an
exemption from property taxes for a specified number of years. To implement the
provisions of the Act, the City must prepare a revitalization plan for each designated
area. This document is the plan addressing the requirements of the Act for an area to
be known as the "Garfield Place" Urban Revitalization Area, as amended.
Area eligibility criteria
The City Council has determined that this area is eligible for designation as a
revitalization area as it meets one of the criteria outlined in Iowa Code. Specifically,
the City Council has found this area to qualify as an economic development area as
defined by Section 403:17 of the iowa Code. This definition includes housing
development where there is an inadequate supply of affordable, decent and safe
housing and the provision of that housing will help to retain or attract industry or meet
the needs of the elderly or disabled or of a population which may not be adequately
served.
Designating this area as an Urban Revitalization Area will assist the provision of
housing to a population which is not adequately served. The proposed Single Room
Occupancy facilities will provide single men with decent housing at affordable rent.
The property tax exemption will make this project feasible.
Legal description
The property to be included in the Garfield Place Revitalization Area is located at 511,
513, 515 and 521 Garfield, legally described as:
Lot 1, Lot 2 and Lot 3 of Davis Place II and Lot 2 Scharle Subdivision in the
County of Dubuque, City of Dubuque, Iowa, according to the recorded plat
A map of the area boundaries is attached as Exhibit A.
Current assessed value
The current assessed valuation for the property as December 1 I, 2003 is as follows:
511 Garfield - $19,070 in total, which is $14,620 for the land and $5410 for the
building, with an additional exemption of $350,110 for the building.
513 Garfield - $8,760 for the land in total, with an additional exemption of
$355,520 for the building.
515 Garfield - $88,260 in total, which is $10,520 for the land and $77,740 for
the building.
521 Garfield - $38,080 in total, which is $8,530 for the land and $29,550 for the
building.
Property ownership
The current properly owner within the area, as of December 11, 2003 is:
511, 513 and 515 Garfield is owned by Davis Place LLC, 17132 Freund Road,
Dubuque, IA.
521 Garfield is owned by Scott A. Potter and Dawn L. Potter, 521 Garfield,
Dubuque, lA
Existing zoning classification
The existing zoning as December 11, 2003 is OR (Office Residential) for the entirety of
the property within the boundaries of the Urban Revitalization Area.
The zoning was changed at 511 Garfield from R-2A (Alternate Two-Family Residential
district) on May 1, 2000, to allow for the construction of the existing 19 mom facility.
513 and 515 Garfield were rezoned from R-2A on January 21, 2002. The zoning was
changed at 52! Garfield from R-2A on November 17, 2003.
Existing and proposed land use
A 19 room single room occupancy (SRO) facility for Iow- and moderate-income men
was constP.~ed in November 2000 at 5! 1 Garfield and a second !9 .m_om SRO
constructed at 513 Garfield on June 2002. Rents are limited to $250 per month for Iow-
income residents. Rents may be higher for moderate income residents. The income
and rent constraints will remain in place for a 20-year term.
515 Garfield contains a single family home which will remain. 52i Garfield currently
contains a single family home which will be removed and a 12 SRO facility will be
constructed with limited rents as established for the other two SRO facilities.
City services
There are no current plans to expand or improve City services to this area. Currently
the area enjoys the same level of City services as most other areas of the City.
Exemption details
Only residential property, assessed as commemial and consisting of three
or more separate living quarters with at least seventy-five pement of the
space used for residential purposes will be eligible for property tax
exemption. This will assist the Single Room Occupancy (SRO) housing
facilities that will provide single men with decent housing at affordable
rent, a population which is not adequately served. The property tax
exemption will make these projects feasible
"Qualified real estate" means real property other than land, which is
located in a designated revitalization area and to which improvements
have been added, during the time the area was so designated, which
have increased the actual value by at least fifteen percent.
"Qualified real estate" also means land upon which no structure existed at
the start of new construction, which is located in a designated
revitalization area and upon which new construction has been added
during the time the area was so designated.
Property tax exemption shall be available only for 'improvements'
"improvements" include new construction on vacant land.
"Actual value added by improvements" means the actual value added as
of the first year for which the exemption was received.
Any improvements that were assessed before the area was officially
designated will not be eligible for exemption. Improvements begun prior to
one year pdor to the area becoming designated will not be eligible for
exemption.
Improvements must result in that structure meeting applicable building
code requirements of the City of Dubuque.
The actual value of the improvements must result in an increase in
assessed value by at least fifteen percent. Each year that an application
is made for tax exemption, the assessed value must have increased in
that year by at least fifteen percent.
The property tax exemption schedule, in accordance with 1999 Code of
iowa, Chapter 404.3 Subsection 4, is as follows:
A ten-year, 100% exemption of the actual value added by the
improvements.
The designation of the amended and restated Garfield Place Urban
Revitalization Area will remain in effect only until the area is fully
redeveloped or for three years, whichever occurs first. Upon repeal or
expiration of the ordinance establishing the revitalization area, all existing
exemptions would continue until their previously established expiration
date.
Industrial revenue bonds
There are no plans to issue industrial revenue bonds for revitalization projects in this
area.
Relocation
Relocation will occur dUe to the redevelopment of the property and will affect one
person. The 38 residents in the existing SRO's will remain. The one resident at 521
Garfield will be vacating the premises and is not requesting relocation assistance.
Anticipated grant or loan programs
The project at 511 Garfield was funded through the Housing Trust Fund $200,000
forgivable loan (Local Housing Assistance Program - Iowa Department of Economic
Development). Additional funding of $300,000 was provided through a conventional
bank loan.
The project at 513 Garfield was funded through a Local Housing Assistance Program
(LHAP) $250,000 forgivable loan through the Iowa Department of Economic
Development. Additional funding of $250,00 was received through a conventiona! bank
loan.
The project at 521 Garfield has requested Iowa Department of Economic Development
HOME Progran~ funds in the amount of $ 575,000. No additional funding will be
required.
Conclusion
The Amended and Restated Garfield Place Urban Revitalization Area will assist the
redevelopment efforts of deteriorated property which will provide for three buildings for
Single Room Occupancy housing (males only) for the citizens of Dubuque. Two
existing buildings contain 19 tenants each and the new SRO building will provide
housing for 12 occupants. After the ten-year property tax exemption period elapses, the
full assessed value of the properties will revert to the tax rolls to the benefit of the entire
community.
This area, upon designation, will follow the procedures for application and granting of
the property tax exemption within the City of Dubuque.
4
Application procedure
1. The property owner must apply for an exemption by February 1~ of the
assessment year for which the exemption is first claimed, but not later than the
year in which all the improvements are first assessed for taxation. Upon the
request of the owner, the governing body of the City may provide by resolution
that the owner may file an application no later than February 1 of the tenth
assessment year.
2. The application must contain, at a minimum, the following:
a. The nature of the improvements,
b. The cost of the improvements,
c. The ac{uai or estimated date of completion, and
d. The tenants living on the property as of the date of the City's
resolution adopting this plan.
3. The property owner has the option of submitting a proposal for an
improvement project to the ~';*,,,..,.~ ~.,,,..,-,~,-, ...*,, submi.ffing a formal application. If the
proposed project is in conformance with the revitalization plan, the City Council
shall, by resolution, give preliminary approval of the project. Such preliminary
approval shall not entitle the owner to exemption until the improvements have
been completed and found to be qualified. If the proposal is rejected, the owner
may submit an amended proposal.
4. The City reviews all applications to determine whether the improvement
project conforms to the revitalization plan, is within a designated area, and if the
improvements were made during the appropriate time period: If the project
meets all three criteria, the City shall forward the application to the assessor by
March 1't, with a statement as to which exemption applies. Applications for
exemptions for succeeding years on approved projects shall not be required.
5. The local assessor shall review each application by making a physical review
of the property, to determine if the improvements made increased the actual
value of the qualified real estate by at least fKteen percent or ten percent in the
case of real property assessed as residentia! property. If the assessor
determines that the actual value of that real estate has increased by at least the
requisite percent, the assessor shall certify the property valuation, determined
pursuant to the tax exemption schedule, to the County Auditor at the time of
transmitting the assessment rolls. The assessor shall notify the applicant of the
determination, and the assessor's decision may be appealed to the local board
of review at the time specified in Iowa Code. The property owner may also refile
an application in a subsequent year after additional improvements have been
made.
6. After the tax exemption is granted, the assessor shall continue to grant the
tax exemption, with periodic physical review by the assessor, for the ten-year
time period specified in the tax exemption schedule.
7. An application for exemption received by February 1 in any year after the
year in which the improvement was completed and first assessed for taxation, is
a late application. Late application may be made in any year up to the tenth
year following completion of the improvement. The exemption pedod will be the
remainder Of the ten year period, which began upon completion of the
improvement, except the total number of years in the exemption schedule will be
allowed if a claim for exemption is filed within two years of the February 1 filing
deadline.
EXHIBIT A
F:\Users~ATAUKE~Urban Re~te~Gadield Place~Ga~eld PlaceAmd,04.doc
Garfield Place
Urban Revitalization Area
Pro posed Ad ditio n
AMENDED AND RESTATED
GARFIELD PLACE
URBAN REVITALIZATION AREA
PROPOSED LOCATION:
515/521 Garfield Avenue
LEGAL DESCRIPTION:
Lot I of Davis Place II
and Lo[ 2 Scharle Subdivision
ZONING:
OR- Office Residential
EXISTING LOCATION:
511/513 Garfield Avenue
LEGAL DESCRIPTION:
Lot 2 & Lot 3 of Davis Place II
ZONING:
OR- Office Residential