Paragon Square Urban Revitalization Area Plan_LRPA Commission LetterPlanning Services Department
City Hall
50 West 13th Street
Dubuque, IA 52001 -4864
(563) 589 -4210 phone
(563) 589-4221 fax
(563) 690 -6678 TDD
planning@cityofdubuque.org
The Honorable Mayor and City Council
City of Dubuque
50 W.13 Street
Dubuque, IA 52001
RE: Paragon Square Urban Revitalization Area Plan
Dear Mayor and City Council Members:
Introduction
On April 20, 2011, the Long Range Planning Advisory Commission reviewed the proposed
Paragon Square Urban Revitalization Area Plan. The proposal, staff reports, and related
materials are enclosed.
Discussion
At the Commission meeting, Aggie Tauke, Community Development Specialist, reviewed
the plan and noted that it will provide incentives for the rehabilitation of the former Holy
Ghost Convent and the former Holy Ghost Assisi School. She explained both buildings are
currently vacant and will be rehabilitated into market -rate residential units.
The Commission reviewed the historical significance of the buildings and the use of historic
preservation tax credits and property tax abatement. The Commission noted establishment
of the urban revitalization area and rehabilitation of the Holy Ghost buildings are great
examples of the investment that will benefit the Central Avenue corridor.
Recommendation
By a vote of 7 to 0, the Long Range Planning Advisory Commission recommends approval
of the proposed Paragon Square Urban Revitalization Area Plan as it is consistent with the
2008 Dubuque Comprehensive Plan.
Respectfully submitted,
Jim Prochaska, Chairperson
Long Range Planning Advisory Commission
Enclosures
Masterpiece on the Mississippi
cc: Michael Van Milligen, City Manager
David Harris, Housing & Community Development Director
Service People Integrity Responsibility Innovation Teamwork
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April 22, 2011
THE CITY OF
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TO: Long Range Planning Advisory Commission
FROM: David Johnson, Assistant Planner )ro °°-
SUBJECT: Paragon Square Urban Revitalization Area Plan
DATE: April 12, 2011
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Introduction
The purpose of this memorandum is to forward the enclosed Paragon Square Urban
Revitalization Area Plan for review and comment by the Long Range Planning Advisory
Commission. The plan will create an urban revitalization area at the former Holy Ghost
Assisi School & Convent at 2887 and 2901 Central Avenue to allow property tax
exemption for market rate residential housing. The Plan is enclosed.
Discussion
The plan provides for the rehabilitation of two former Holy Ghost parish buildings into multi-
family residential housing by Paragon Square, LLC and Paragon Square II LLC. 2887
Central contains the former Holy Ghost convent building, a three story masonry building
which is currently vacant. The building will be rehabilitated into nine market rate residential
units with 11 off - street parking spaces. 2901 Central contains the former Holy Ghost Assisi
School building, a four -story masonry building, which is currently vacant. The building will
be converted to eighteen market rate residential units with 23 off - street parking spaces.
Urban revitalization tax exemptions are used to stimulate private investment by abating tax
increases that usually accompany property improvements. The 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
economic development and affordable housing.
One of the roles of the Long Range Planning Advisory Commission is to review urban
revitalization plans and urban revitalization plan amendments for consistency with the
comprehensive plan for the city. Planning Services Staff has reviewed the Paragon Square
Urban Revitalization Area Plan and finds the objectives are consistent with the 2008
Dubuque Comprehensive Plan, with greatest relevance to the Land Use and Urban
Design, Economic Development, and Housing Elements.
Paragon Square Urban Revitalization Area Plan
Page 2
Recommendation
Staff recommends the Long Range Planning Advisory Commission recommend approval
of the Paragon Square Urban Revitalization Area Plan, as the proposed plan is consistent
with the 2008 Dubuque Comprehensive Plan.
Enclosures
Masterpiece on the Mississippi
TO: Long Range Planning Advisory Commission
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FROM: David ITarris, Housing and Community Development Department
Dubuque
All AmedcaCity
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2007
SUBJECT: Review and Comment on Paragon Square Urban Revitalization Area Plan
DATE: April 11, 2011
Introduction
The Long Range Planning Advisory Commission is requested to review the attached
Paragon Square Urban Revitalization Area Plan and to comment on its conformance with
the general plan for the community. The plan will create an urban revitalization area at the
former Holy Ghost Assisi School and convent and 2887 and 2901 Central Avenue to allow
property tax exemption for market rate residential housing.
Background
Section 15 -2 -3 of the Code of Ordinances of the City of Dubuque requires review of an
urban revitalization plan as to its consistency with the comprehensive plan for the City. 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 Paragon Square Urban Revitalization Area
Plan at its April 18th meeting and set a public hearing for June 6th following a 30 day
public review period.
Discussion
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 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 plan provides for the rehabilitation of two former Holy Ghost parish buildings into multi-
family residential housing by Paragon Square, LLC and Paragon Square 11 LLC. 2887
Central contains the former Holy Ghost convent building, a three story masonry building
which is currently vacant. The building will be rehabilitated into nine market rate residential
units with 11 off - street parking spaces. 2901 Central contains the former Holy Ghost Assisi
School building, a four -story masonry building, which is currently vacant. The building will
be converted to eighteen market rate residential units with 23 off - street parking spaces.
The owners have applied to have both buildings listed on the National Register of Historic
Places and will apply for state and federal Historic Tax Credits. The buildings will be
renovated under the Secretary of Interior's standards for the renovation of historic
properties.
The former Holy Ghost Assisi School building at 2901 Central was rezoned in January to
OR Office Residential. The Zoning Board of Adjustment approved a special exception on
February 24, 2011 to allow the building to be converted to 18 residential units. The ZBA
also approved a variance on December 16, 2010 to allow the former convent building at
2887 Central to be converted to ten residential units.
The Paragon Square Urban Revitalization Area Plan supports several goals of the
Comprehensive Plan:
Housing
• Promote recycling existing vacant or under - utilized structures, such as convents,
schools, and industrial buildings, into housing with an affordable component, where
appropriate.
• Encourage a range of affordable, accessible, and decent rental housing options
throughout the community.
Economic Development
• Encourage property improvements and revitalization throughout the city.
• Promote the Residential Living element of the Downtown Master Plan.
Land Use and Urban Design
• Promote inclusive and economically integrated neighborhoods that allow a diverse
mix of residents and housing types.
• Promote providing a range of housing options throughout the community.
• Support protection of historic neighborhoods from inappropriate development,
inconsistent with existing historic development.
• Encourage preservation of historic and aesthetic character and function of
established neighborhoods.
• Promote protection and preservation of the city's historic buildings, urban pattern,
and natural environment.
• Encourage redevelopment or adaptive reuse of vacant or underutilized buildings and
sites.
• Encourage reinvestment in our existing neighborhoods (i.e., smart growth).
Recommendation
Staff encourages the Long Range Planning Advisory Commission to support the efforts
to revitalize, preserve and reuse these vacant historic buildings for market rate housing.
The Paragon Square Urban Revitalization Area contains historic structures that are
worthy of preservation. The plan seeks to preserve and renovate the area's existing
buildings into functional residential housing units.
Action Step
The action step for the Long Range Planning Advisory Commission is to transmit its
recommendations as to the conformity of the proposed Paragon Square Urban
Revitalization Area Plan to the City Council prior to the June 6, 2011 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\Paragon Square UR\Paragon Square UR LRPC mem.2011.doc
Paragon Square Urban Revitalization Plan
April 2011
1.0 Introduction
The following plan describes certain provisions of the Iowa Urban Revitalization
Act and proposes the establishment of the Paragon Square Urban Revitalization
area.
The State of Iowa, under Iowa Code Chapter 404, allows cities to designate
areas as urban revitalization districts. Under this Act, improvements to qualified
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 the reduction of tax increases related to property improvements.
Once an area is deemed to meet the requirements established in Chapter 404, a
plan must be established which identifies the district boundaries, property
owners, existing conditions, proposed plans and the basic abatement provisions
for the revitalization area.
Iowa Code Chapter 404.1 lists five reasons for which a city or county may
establish urban revitalization plans. These include: the existence of numerous
buildings that are dilapidated or deteriorated; the need for preservation and
restoration of buildings due to their historic significance; the area is appropriated
as an economic development region as defined in Iowa Code 403.17; the need
for public improvements related to housing; and the encouragement of housing
and residential development. The Paragon Square Urban Revitalization Plan will
be based upon the need for the encouragement of housing and residential
development and the need for preservation and restoration of buildings due to
their age, history, and architecture or significance.
2.0 The Area
2.1 Location
The area included in the Paragon Square Urban Revitalization district is
located at 2887 and 2901 Central Avenue in the City of Dubuque, Iowa,
legally described as:
Lot 1 of 1 and Lot 2 of 1 of Paragon Square, all in the City of Dubuque,
Dubuque County, Iowa.
A map of the area boundaries is attached as Exhibit A.
Paragon Square Urban Revitalization Plan
April2011
Page 2
2.2 Zoning
The existing zoning is OR (Office Residential District). 2887 Central Avenue
was rezoned in 1994 and 2901 Central was rezoned on January 18, 2011 by
Ordinance No. 4 -11.
The Zoning Board of Adjustment approved a variance on December 16,
2010 to allow the former convent building at 2887 Central to be converted to
ten residential units with a deficit of 5 off - street parking spaces (Docket 62-
10) and on an 8,490 square foot lot where 12,000 square feet of lot areas
was required (Docket 63 -10).
The Zoning Board of Adjustment approved a special exception on February
24, 2011 to allow the former Holy Ghost Assisi School building at 2901
Central to be converted to 18 residential units on an 18,256 square foot lot
where 21,600 square feet of lot area is required (Docket 10 -11) and with a
deficit of 4 off - street parking spaces(Docket 11 -11)
2.3 Existing and Proposed Land Use
The Paragon Square Urban Revitalization District is comprised of 2 existing
structures on two lots. Total acreage is .614 acres (26,746 square feet).
2887 Central contains the former Holy Ghost convent building, a three story
masonry building which is currently vacant. The building will be rehabilitated
into nine market rate residential units with 11 off - street parking spaces.
2901 Central contains the former Holy Ghost Assisi School building, a four -
story masonry building, which is currently vacant. The building will be
converted from a school to eighteen market rate residential units with 23 off -
street parking spaces.
The owners have applied to have both buildings listed on the National
Register of Historic Places and will apply for state and federal Historic Tax
Credits. The buildings will be renovated under the Secretary of Interior's
standards for the renovation of historic properties.
2.4 Assessed Valuations and Owners of Records
The owners and existing assessed valuation of the property, including land
and building values, as of January 1, 2011 is as follows:
2887 Central Avenue (Lot 2 -1 Paragon Square) is owned by Paragon Square
II, LLC and assessed for $81,440 total, which is comprised of $21,080 for the
land and $60,360 for the building.
2901 Central Avenue (Lot 1 -1 Paragon Square) is owned by Paragon Square
LLC and is assessed for $172,410 total, which is comprised of $42,160 for
the land and $130,250 for the building.
2.5 City Services
This area is currently served by city services.
3.0 Relocation
4.0 Qualification of Area
Paragon Square Urban Revitalization Plan
April 2011
Page 3
No relocation should occur due to the rehabilitation of the parcels identified
for this district since the buildings are currently vacant.
The Paragon Square Urban Revitalization District Area is an area comprised
of 2 parcels and two existing historic buildings. The buildings were formerly
used for a school and convent on the Holy Ghost Catholic Parish campus at
29 and Central Avenue. The area is adjoined on the west and south by the
Holy Ghost parking lot, on the north by the Holy Ghost rectory, church and
existing school and on the east by Central Avenue.
Historically, buildings associated with a church campus are difficult to
adaptively reuse. These buildings typically sit vacant for long periods of time,
due to the size and limitations for these large structures. The revitalization
and reuse of these currently vacant buildings will prevent deterioration of the
structures and the negative impact on the neighborhood that often results
from blighted properties. In addition, the rehabilitation of the buildings will
place the formerly tax - exempt buildings on the tax rolls.
4.1 Historic Significance
The Paragon Square Urban Revitalization Area contains historic structures
that are worthy of preservation. In an effort to stem the deterioration of these
buildings, it's appropriate that this area be designated as an urban
revitalization area. The plan seeks to preserve and renovate the area's
existing buildings into functional residential housing units.
The Holy Ghost Assisi School building (2901 Central) was initially constructed
in 1896 as a combination school- church - convent building. The former Sisters
Convent of Holy Ghost (2887 Central) was then built in 1903. When the Holy
Ghost Catholic Church was completed in 1917, the original combination
building was remodeled for use only as a school. The three story brick school
building exhibits Romanesque Revival style features with some Gothic
Revival elements.
The convent building has some details reflective of the Romanesque and
Gothic revival designs while including other general details of the late
Victorian period. The convent reflects the brick architecture and details of the
Paragon Square Urban Revitalization Plan
April 2011
Page 4
adjoining school, church and rectory buildings and contributes to the
architectural significance of the overall historic district. The architectural styles
and the use of red brick visually link the Holy Ghost buildings.
4.2 Building Conditions
The City Assessor's office has classified the condition of the buildings as very
poor. The structures are in need of repair and rehabilitation to preserve their
historic features and character.
5.0 Revitalization Program
5.1 Tax Exemption
a) Residential property assessed as residential or assessed as commercial
property, if the commercial property consists 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. The
property tax exemption will be in accordance with the Code of Iowa,
Chapter 404.3(4), providing for a ten -year, 100% exemption of the actual
value added by the improvements.
The revitalization exemption shall be applicable only to property converted
to market rate residential units in compliance with the Secretary of
Interior's standards for renovation of historic properties.
b) "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, or at least ten
percent in the case of real property assessed as residential, or which
have, in the case of land upon which is located more than one building
and not assesses as residential property, increased the actual value of the
buildings to which the improvements have been made by at least fifteen
percent.
c) Property tax exemption shall be available only for `improvements', which
include rehabilitation and additions to the existing structures. "Actual
value added by improvements" means the actual value added as of the
first year for which the exemption was received.
d) 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.
e) Improvements must result in that structure meeting applicable building,
Paragon Square Urban Revitalization Plan
April 2011
Page 5
plumbing, mechanical, electrical, and other code requirements of the City
of Dubuque.
f) The actual value of the improvements must result in an increase in
assessed value as stated above in (b). Each year that an application is
made for tax exemption, the assessed value must have increased in that
year by the required percentage.
g) The area shall become a Revitalization District commencing upon the
adoption of the ordinance approving this Revitalization District by the City
Council. The designation of the Paragon Square Urban Revitalization Plan
Area will remain in effect until the desired level of revitalization has been
attained, or for three years, whichever occurs first. Upon repeal of the
ordinance establishing this revitalization area or expiration of the period of
effective designation specified above, all existing exemptions' would
continue until their previously established expiration date.
5.2 Availability of funding
The renovation of the property will be funded with equity investment from
investors, a construction loan from a financial institution, Iowa State Historic
Tax Credits, Federal Historic Tax Credits, Enterprise Zone Tax Credits and
Economic Development Credits.
6.0 Application Procedure
This area, upon designation, will follow the procedures for application and
granting of the property tax exemption within the City of Dubuque.
a) 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 included in the project are first
assessed for taxation, or the following two assessment years, in which
case the exemption is allowed for the total number of years in the
exemption schedule. 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.
b) 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 occupying the property as of the date of the City's
resolution adopting this plan.
Paragon Square Urban Revitalization Plan
April 2011
Page 6
c) 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 with a statement as to which exemption applies.
Applications for exemptions for succeeding years on approved projects
shall not be required.
d) 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 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.
e) 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.
f) 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 1 filing deadline.
7.0 Conclusion
The proposed urban revitalization district will assist the rehabilitation efforts of
vacant or deteriorating properties by providing needed housing units and
supporting reuse of existing structures for the citizens of Dubuque. After the
ten -year abatement period lapses on these projects, the full assessed value
of the rehabilitation property will go on the tax rolls to the benefit of the entire
community.
EXHIBIT A (Map)
F: \Users\ATAUKE \Urban Revite \Wash Neigh UR \Wash Neigh UR Plan Final.doc
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Paragon Square Urban Revitalization District
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