Greater Downt Urban Dis TI Ord
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MEMORANDUM
May 10, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Tax Increment Ordinance for the Greater Downtown Urban Renewal
District
On April 19, 2004, the City Council approved an Urban Renewal Plan for the Greater
Downtown Urban Renewal District that merged the boundaries of the Downtown
Dubuque and Ice Harbor Urban Renewal Districts. Tax Increment ordinances have
already been in effect for both of the original districts.
Economic Development Director Bill Baum recommends City Council approval of the
tax increment ordinance for the Greater Downtown Urban Renewal District. Tax
increment financing is an important tool for economic development and will be used to
assist future public and private development efforts in the downtown and riverfront area.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
¡Y¿íJA ~ fltJI{
Miéhael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
April 23, 2004
TO:
FROM:
Michael Van Milligen, City Manager
William Baum, Economic Development Director ~
Tax Increment Ordinance for the Greater Downtown Urban Renewal
District
SUBJECT:
Introduction
This memorandum transmits for City Council review and adoption an ordinance
establishing a tax increment financing district for the newly established Greater
Downtown Urban Renewal District. The proposed ordinance and associated
certifications were prepared by the City's bond counsel and are attached to this memo.
Background
On April 19, 2004, the City Council approved an Urban Renewal Plan for the Greater
Downtown Urban Renewal District that merged the boundaries of the Downtown
Dubuque and Ice Harbor Urban Renewal Districts. Tax increment ordinances have
already been in effect for both of the original districts.
Discussion
Adoption of the proposed tax increment ordinance is needed to establish the use of tax
increment financing in the merged district. The ordinance authorizes the City to
establish a special fund for the collection of a portion of the property tax revenues
generated by new development occurring within the five subareas of the district. All
taxable property located with the tax increment district will continue to 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 future
development projects within the district, including both public and private development.
Adoption of the ordinance will continue the base valuations for the Original Project
Areas (all five subareas).
Recommendation
I recommend that the City Council approve the tax increment ordinance for the Greater
Downtown Urban Renewal District. Tax increment financing is an important tool for
economic development and will be used to assist future public and private development
efforts in the downtown and riverfront area.
Action Step
The action step is for the City Council to approve the tax increment ordinance attached
hereto.
attachment
F : \ USERS \Pm\l1 re \ WP DOCS \U R IDWNìWN -ICE HARBOR \tifo rd memo. doc
ORDINANCE NO. 35-04
AN ORDINANCE AMENDING ORDINANCE NOS. 30-82 AND 66c89, EACH
AS PREVIOUSLY AMENDED, PROVIDING THAT GENERAL PROPERTY
TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY
LOCATED WITHIN THE GREATER DOWNTOWN URBAN RENEWAL
DISTRICT OF 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
j WITH THE URBAN RENEWAL PLAN FOR THE GREATER DOWNTOWN
URBAN RENEWAL DISTRICT
WHEREAS, the City Council of the City of Dubuque, Iowa (the "City") has
heretQfore, in Ordinance No. 30-82, provided for the division of taxes within the original
Downtown Dubuque Urban Renewal Project, Iowa R-15, described in Resolution No.
123-67 adopted on May 18, 1967, pursuant to Section 403.19 of the Code ofIowa; and
WHEREAS, the original Downtown Dubuque Urban Renewal Project, Iowa R-15,
subsequently was amended by Resolution No. 79-71 approved on March 15, 1971, by
Resolution No. 73-74 approved on March 11, 1974, by Resolution No. 107-82 approved
on May 3, 1982, by Resolution No. 191-84 approved on June 25, 1984, by Resolution No.
371c93 approved on December 6,1993, by Resolution No. 145-94 approved on May 2,
1994, by Resolution No. 479-97 approved on November 17,1997, by Resolution No.
476-98 approved on October 19, 1998 and by Resolution No. 187-02 approved on April
1, 2002, which amendments, among other things, added areas referred to as the Old Main
Subarea, Town Clock Expansion Subarea and Upper Main Subarea to the area of the
Downtown Dubuque Urban Renewal District; and
WHEREAS, consistent with the foregoing amendments, Ordinance No. 30-82
subsequently was amended by Ordinance Nos. 23-94, 36-94, 67-97, and 26-02 to provide
for the division of taxes within the several subareas of the amended Downtown Dubuque
Urban Renewal District; and
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WHEREAS, the City Council of the City has heretofore, in Ordinance No. 66-89,
provided for the division of taxes within the original Ice Harbor Urban Renewal District,
described in Resolution No. 403-89 adopted on December 18, 1989, pursuant to Section
403.19 of the Code ofIowa; and
WHEREAS, the original Ice Harbor Urban Renewal District subsequently was
amended by Resolution No. 241-00 approved on June 5, 2000 and by Resolution 114-02
approved on March 4, 2002, which amendments, among other things, added an additional
area referred to as Subarea B to the area of the Ice Harbor Urban Renewal District; and
WHEREAS, consistent with the foregoing amendment, Ordinance No. 66-89
subsequently was amended by Ordinance No. 97-00 to provide for the division of taxes
within the two subareas of the amended Ice Harbor Urban Renewal District; and
WHEREAS, the original Downtown Dubuque Urban Renewal District and the
original Ice Harbor Urban Renewal District and their respective Subareas have been
combined into a single urban renewal area, under the terms of an Urban Renewal Plan for
the Greater Downtown Urban Renewal District, pursuant to Resolution No. 170-04
adopted on April 19, 2004; and
WHEREAS, indebtedness has been incurred by the City, and additional
indebtedness is anticipated to be incurred in the future, to finance urban renewal project
activities within the combined area known as the Greater Downtown Urban Renewal
District (the "Greater Downtown Urban Renewal District"), and the continuing needs of
redevelopment within the Greater Downtown Urban Renewal District are such as to
require the continued application of the incremental tax resources of the Greater
Downtown Urban Renewal District; and
WHEREAS, the following enactment is necessary to accomplish the objectives
described in the premises.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, THAT:
Ordinance No. 30-82, as amended by Ordinance Nos. 23-94, 36-94, 67-97, and 26-
02, and Ordinance No. 66-89, as amended by Ordinance No. 97-00, are hereby amended
to read as follows:
Section 1: For purposes of this Ordinance, the following terms shall have the
following meanings:
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(a) Original Town Clock Subarea shall mean that portion of the Amended Project
Area initially described in the Urban Renewal Plan for the Downtown Dubuque Urban
Renewal Project, Iowa R-lS, approved by Resolution No. 123-67 on May 18, 1967,
which Original Town Clock Subarea includes the lots and parcels located within the area
now legally described as follows:
Beginning at the intersection of the north right-of-way line of Ninth Street with the
east right-of-way line of Central Avenue; thence south along the east right-of-way
line of Central Avenue to its intersection with the south right-of-way line of Fourth
Street; thencewest along the south right-of-way line of Fourth Street to its
intersection with the west right-of-way line of Locust Street; thence north along
the west right-of-way line of Locust Street to its intersection with the north right-
of-way line of Ninth Street; thence east along the north right-of-way line of Ninth
Street to its intersection with the east right -of-way line of Central Avenue which is
j the point of beginning
(b) Old Main Subarea shall mean that portion of the Amended Project Area
initially described in the Amended and Restated Urban Renewal Plan for the Downtown
Dubuque Urban Renewal District approved by Resolution No. 14S-94 on May 2, 1994,
which Old Main Subarea includes the lots and parcels located within the area legally
described as follows:
Beginning át the intersection of the south right-of-way line of Fourth Street with
the east right-of-way line of Central Avenue; thence west along the south right-of-
way line of Fourth Street to the west right-of-way line of Locust Street; thence
south along the west right-of-way line of Locust Street to the north right-of-way
line of the Locust Street Connector; thence east along the north right"of-way line
of the Locust Street Connector to the west right-of-way line of Highways IS1/61;
thence north along the west right-of-line of Highways IS1/61 to the point of
beginning.
(c) Town Clock Expansion Subarea shall mean that portion of the Amended
Project Area initially described in the Amended and Restated Urban Renewal Plan for the
Downtown Dubuque Urban Renewal District approved by Resolution No. 479-97 on
November 17, 1997, which Town Clock Expansion Subarea includes the lots and parcels
located within the area legally described as follows:
South 1/2 of City Lot 167, City Lot 168 and City Lot 168A; Lots 1 & 2 of City
Lots 204, 20S, 206, 207 and 208, No 23' of City Lot 263, S. 28.S' of City Lot 263,
N. 1/2 of City Lot 262, S. 1/2 of City Lot 262, N. 1/2 of City Lot 261, all in
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Section 24, Township 89 North, Range 2 East, Sth P.M., Dubuque County, Iowa
and any adjoining public right-of-way.
(d) Upper Main Subarea shall mean that portion of the Amended Project Area
initially described in the Amended and Restated Urban Renewal Plan for the Downtown
Dubuque Urban Renewal District approved by Resolution No. 187-02 on April 1, 2002,
which Upper Main Subarea includes the lots and parcels located within the area legally
described as follows:
On the North by Fourteenth Street, on the West by Locust Street, on the South by
the Town Clock Expansion Subarea and on the East by Central Avenue, including
all public rights-of-way.
(e) Ice Harbor Subarea A shall mean that portion of the Amended Project Area
initially described in the Urban Renewal Plan for the Ice Harbor Urban Renewal District
approved by Resolution No. 403-89 on December 18, 1989, which Ice Harbor Subarea A
includes the lots and parcels located within the area legally described as follows:
that area generally bounded on the north by the public alley located between the
vacated Fourth Street 'and Third Street, on the west by the Chicago, Central and
Pacific Railroad right-of-way, on the south by East First Street and on the east by
the municipal limits of the City of Dubuque, Iowa and including any adjoining
public right-of-way.
(f) Ice Harbor Subarea B shall mean that portion of the Amended Project Area
initially described in the Amended and Restated Urban Renewal Plan for the Ice Harbor
Urban Renewal District approved by Resolution No. 241-00 on June S, 2000, which Ice
Harbor Subarea B includes the lots and parcels located within the area legally described
as follows:
that area generally bounded on the north and west by the Chicago, Central and
Pacific Railroad right-of-way, on the south by the northerly boundary of the Ice
Harbor Subarea A and on the east by the municipal limits of the City of Dubuque,
Iowa (excluding Lot 1 Adams Co.'s 2nd Addition) and including any adjoining
public right-of-way
(g) Amended Project Area shall mean the areas of the City of Dubuque, Iowa
included within the Original Town Clock Subarea, the Old Main Subarea, the Town
Clock Expansion Subarea, the Ice Harbor Subarea A and the Ice Harbor Subarea B, each
as described in this Section.
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(h) Urban Renewal Plan shall mean the Urban Renewal Plan for the Greater
Downtown Urban Renewal District, approved by Resolution No. 170-04 on April 19,
2004, as the same may be amended ITom time to time.
Section 2: The taxes levied on the taxable property in the Amended Project
Area, legally described in Section 1 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 ITom and after the effective date of this Ordinance shall be divided as
hereinafter in this Ordinance provided.
Section 3: As to the Original Town Clock Subarea, 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 taxing districts taxing property in the Original Town Clock Subarea upon the total
sum of the assessed value of the taxable property in the Original Town Clock Subarea as
shown on the assessment roll as of January 1, 1966, being the assessment roll last
equaÚzed prior to the date of the initial adoption of the Urban Renewal Plan for the
Downtown Dubuque Urban Renewal Project, Iowa R-1S, shall be allocated to and when
collected be paid into the fund for the respective taxing district as taxes by or for said
taxing district into which all other property taxes are paid. The taxes so determined shall
be referred herein as the "base period taxes" for such subarea.
As to the Old Main Subarea, base period taxes shall be computed in the same
manner using the total assessed value shown on the assessment roll as of January 1, 1993,
being the assessment roll as of January 1 ofthe calendar year preceding the effective date
of Ordinance No. 23-94.
As to the Town Clock Expansion Subarea, base period taxes shall be computed in
the same manner using the total assessed value shown on the assessment roll as of
January 1, 1996, being the assessment roll as ofJanuary 1 of the calendar year preceding
the effective date of Ordinance No. 67-97.
As to the Upper Main Subarea, base period taxes shall be computed in the same
manner using the total assessed value shown on the assessment roll as of January 1, 2001,
being the assessment roll as of January 1 of the calendar year preceding the effective date
of Ordinance No. 26-02.
As to the Ice Harbor Subarea A, base period taxes shall be computed in the same
manner using the total assessed value shown on the assessment roll as of January 1, 1988,
being the assessment roll as of January 1 of the calendar year preceding the effective date
of Ordinance No. 66-89.
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As to the Ice Harbor Subarea B, base period taxes shall be computed in the same
manner using the total assessed .value shown on the assessment roll as of January 1, 1999,
being the assessment roll as of January 1 of the calendar year preceding the effective date
of Ordinance No. 97-00.
Section 4: That portion of the taxes each year in excess of the base period taxes
for the Amended Project Area, determined for each subarea thereof as provided in
Section 3 of this Ordinance, shall be allocated to and when collected be paid into the
special tax increment fund previously established by the City of Dubuque to pay the
principal of and interest on loarts, monies advanced to, or indebtedness, whether funded,
refunded, assumed or otherwise, including bonds issued under authority of Section 403.9
or Section 403.12 of the Code of Iowa, incurred by the City of Dubuque, Iowa to finance
or refinance, in whole or in part, urban renewal projects'undertaken within the Amended
Project Area pursuant to the Urban Renewal Plan, except that taxes for the regular and
voter-approved physical plant and equipment levy of a school district imposed pursuant to
Section 298.2 ofthe Code ofIowa (but only to the extent required under Section
403.19(2» and taxes for the payment of bonds and interest of each taxing district shall be
collected against all taxable property within the Amended Project Area without any
limitati()n as hereinabove provided.
Section 5: Unless or until the total assessed valuation of the taxable property in
the subareas of the Amended Project Area exceeds the total assessed value of the taxable
property in said subareas shown by the assessment rolls referred to in Section 3 of this
Ordinance, all of the taxes levied and collected upon the taxable property in the Amended
Project Area shall be paid into the funds for the respective taxing districts as taxes by or
for the taxing districts in the same manner as all other property taxes.
Section 6: At such time as the loans, monies advanced, bonds and interest thereon
and indebtedness of the City of Dubuque referred to in Section 4 hereof have been paid,
all monies thereafter received from taxes upon the taxable property in the Amended
Project Area shall be paid into the funds for the respective taxing districts in the same
manner as taxes on all other property.
Section 7: 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 continue the division of taxes from property within the
Amended Project Area under the provisions of Section 403.19 of the Code of Iowa, as
authorized in Ordinance Nos. 30-82 and 66-89, as amended by Ordinance Nos. 23-94, 36-
94,67-97,26-02 and 97-00. In the event that any provision of this Ordinance shall be
detennined to be contrary to law it shall not affect other provisions or application of this
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Ordinance which shall at all times be construed.to fully invoke the provisions of Section
403.19 of the Code ofIowa with reference to the Amended Project Area and the territory
contained therein. '
Section 8: This Ordinance shall be in effect after its final passage, approval and
publication as provided by law.
PASSED AND APPROVED this 17th day of May, 2004.
Terrance M. Duggan, Mayor
Attest: Jeanne F. Schneider, City Clerk
Read first time: May 17, 2004
Read second time: May 17. 2004
Read third time: May 17, 2004
PASSED AND APPROVED, May 17, 2004.
Published: May 21, 2004
May 17, 2004
PUBLISHED:
May 21. 2004
PWESTEMEYER\406665\1 0422067
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