Garfield Pl Urban Revit AmendedPlmmh~g Services Department
City Hag
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 5894210 office
(563) 589-4221 fax
(563) 690~678 TDD
plarmLng@dtyofdubuque.org
January26,2004
The Honorable Mayor and City Council Members
City of Dubuque
City Hall - 50 W. 13th Street
Dubuque, IA 52001
RE: Amended and Restated Garfield Place Urban Revitalization Area Plan
Dear Mayor and City Council Members:
The City of Dubuque Long Range Planning Advisory Commission has reviewed the
above-cited request. The staff report and related materials are attached for your review.
Discussion
David Harris, Housing and Community Development Director, spoke in favor of the
request.
Planning Services Manager Laura Carstens noted the consistency of the proposal with
the Comprehensive Plan.
There were no public comments.
The Long Range Planning Advisory Commission discussed the request, noting that this
is an amendment of an urban revitalization plan they have supported in the past.
Recommendation
By a vote of 7 to 0, the Long Range Planning Advisory Commission finds the proposal is
consistent with the Comprehensive Plan, and recommends City Council adoption.
Respectfully submitted,
David Wm. Rusk, Chairperson
Long Range Planning Advisory Commission
Attachments
cc: David Hards, Housing and Community Development Director
Service People Integrity Responsibility Irmovaffon Teamwork
TO:
FROM:
SUBJECT:
MEMORANDUM
January 5, 2004
Long~,~nge Planning Advisory Commission
David'L~a~rris. Housing and Community Development Department
Review and Comment on Amended and Restated Garfield Place Urban
Revitalization Area Plan
Introduction
The Long Range Planning Advisory Commission is requested to review the attached
Amended and Restated Garfield Place Urban Revitalization Area Plan and to comment on
its conformance with the general plan for the community. The amended plan will add two
adjoining lots to allow property tax exemption for a proposed 12 room single-room
occupancy (SRO) facility at 521 Garfield Avenue and extends the duration of the plan.
Background
Section 36-7(7) of the Code of Ordinances of the City of Dubuque requires review of an
urban revitalization plan as to its conformity with the general plan for the development of
the municipality as a whole. The ordinance assigns this duty to the Long Range Planning
Commission
The Commission does not approve or deny the urban revitalization plan but reviews the
plan and submits written recommendations with respect to its conformance with the
general plan. The City Council received the Amended and Restated Garfield Place Urban
Revitalization Area Plan at its January 5th meeting and will set a public hearing for
February 16 2004.
Discussion
Urban Revitalization. Chapter 404 of the Iowa Code (Urban Revitalization Actl 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 abating tax increases that usually accompany property improvements. This
additional private investment provides a long-term increase or stabilization in the area's
tax base, 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 hearing 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
another 19 unit SRO.
The amendment adds 515 and 521 Garfield 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
prowded. Scott and Dawn Potter, owners of 521 Garfield, have applied to the 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 allow for new
construction, an improvement for which property tax exemption will be requested. The
original Garfield Place Urban Revitalization Area Plan also provided for new construction,
which has been completed and tax exemption received.
The Amended and Restated Garfield Place Urban Revitalization Area Plan supports
several goals of the Comprehensive Plan:
Housing
· To assist local service agencies in providing shelter and semi-independent living
for persons in need of supporting services.
Economic Development
· To establish and maintain housing and transportation, communication, and utility
systems which support and foster quality development.
Land Use and Urban design
· To encourage redevelopment opportunities within the City in an effort to revitalize
unused or underused property while ensunng the preservation for viable and affordable
housing stock.
· To encourage the concept of mixed use development to create diverse and self-
sufficient neighborhoods.
Human Sen/ices
· To work with area providers to promote optimum services to meet food, clothing,
shelter, transportation, and other basic material needs.
Recommendation
Staff encourages the Long Range Planning Advisory Commission to support the efforts of
the City to provide housing alternatives for the residents of Dubuque. Staff believes the
proposed plan provides for utilizing vacant parcels in the older, downtown neighborhoods
for new affordable housing projects.
Action Step
The action step for the Long Range. Planning Advisory Commission is to transmit its
recommendations as to the conformity of the proposed Amended and Restated Garfield
P{ace Urban Revitalization Area Plan to the City Council prior to the February 16 2004
public hearing.
Prepared by Aggie Tauke, Community Development Specialist
Attachments
Cc: Michael Van Milligen, City Manager
Laura Carstens, City Planner
F:',USerS~ATAUKE~Urban Revite~Garfield Place~GarfieldLRPCmem.04.doc
Garfield Place
Urban Revitalization Area
Proposed Addition
AMENDED AND RESTATED
GARFIELD PLACE
URBAN REVITALIZATION AREA
PROPOSED LOCATION:
515/521 Garfiel¢ Avenue
LEGAL DESCRIPTION:
Lot 1 of Davis Place II
am:l Lot 2 Scharle Subdivision
ZONING:
OR - Office Residential
EXISTING LOCATION:
511/5 13 Garfield Avenue
LEGAL DESCRIPTION:
Lot 2 & Lot 3 of Davis Place
ZONING:
OR- Office Residential
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 industr), 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 prevision 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 Schade Subdivision in the
County of Dubuque, City of Dubuque, Iowa, according to the recorded plat
thereof.
A map of the area boundaries is attached as Exhibit A.
Current assessed value
The current assessed valuation for the property as December 11, 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, IA
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 room facility.
513 and 515 Garfield were rezoned from R-2A on January 21, 2002. The zoning was
changed at 521 Garfield from R-2A on November 17. 2003.
Existing and proposed land uae
A 19 room single room occupancy (SRO) facility for Iow- and moderate-income men
was constructed in November 2000 at 511 Garfield and a second 19 room 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. '~
and rent constraints will remain in place for a 20-year term,
515 Garfield contains a single family home which will remain. 521 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 commercial and consisting of three
or more separate living quarters with at least seventy-five percent 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
dudng the time the area was so designated.
Property tax exemption shall be available only for 'improvements'
"Improvements" inctude 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 prior 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). Additiona! 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 conventional bank
loan.
The project at 521 Garfield has requested Iowa Department of Economic Development
HOME Program funds in the amount of $ 575,000. No additional funding will be
required.
Conclusion
The Amended and Restate(~ Garfield Place Urban Revitalization Area will assist the
redevelopn'~nt efforts -' '~-'~': '~'-'~~, ..... ,~.~,'~'~). '"~';"" ' ';~ P, ,~v,u~ ,,,, ,,,, e~ ,,u,,u,, ,~s ,o,
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 exempt'on per'o(~ 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.
Application procedure
1. The property owner must apply for an exemption by February 1~t 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. -
The application must contain, at a minimum, the following:
a. The nature of the improvements,
b. The cost of the improvements,
c. The actual 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 City prior to submitting 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 1s', 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 fifteen percent or ten percent in the
case of real property asseSSed as residential property. If the assessor
determines that the actual value of that real estate nas 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 assess,m~nt rolls. Th~ oss~ssor s,,o,, no,hz ,h~ apph,~n, ot 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 pedod 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 period 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 I filing
deadline.
EXHIBIT A
F:\Users~ATAUK~Urban Rev~te\Garfiel(J Place\Gadield PlaceAmd.04.doc
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Garfield Place
Urban Revitalization Area
Proposed Addition
AMENDED AND RESTATED
GARFIELD PLACE
URBAN REVITALIZATION AREA
PROPOSED LOCATION:
$15/521 Gadield Avenue
LEGAL DESCRIPTION:
Lot I of Davis Place II
and LOt 2 Scharle Subdivision
ZONING:
OR - Office Residential
EXISTING LOCATION:
511/513 Garfield Avenue
LEGAL DESCRIPTION:
Lot 2 & Lot 3 of Davis Place
ZONING:
,.,R- Offi~.e ,.es.~e .a