Holy Ghost Urban Renewal District Tax Increment OrdinanceMasterpiece on the Mississippi
Dubuque
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Al- America City
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2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Tax Increment Ordinance for the Holy Ghost Urban Renewal District
DATE: July 23, 2011
Economic Development Director Dave Heiar recommends City Council approval of the
creation of the tax increment financing district for the Holy Ghost Urban Renewal
District. Adoption of the proposed tax increment ordinance is needed to establish the
use of tax increment financing to the district.
On July 18, 2011 the City Council approved an Urban Renewal Plan for the Dubuque
Holy Ghost Urban Renewal District which includes the former Holy Ghost Convent and
School. The tax increment ordinance allows for TIF collection on these properties.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
Dubuque
AI- AnedcaClry
11111!
2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director II)
SUBJECT: Tax Increment Ordinance for the Holy Ghost Urban enewal District
DATE: July 19, 2011
Introduction
This memorandum transmits for City Council review and adoption an ordinance creating the tax
increment financing district for the Holy Ghost Urban Renewal District. The proposed ordinance
was reviewed by the City's bond counsel and is attached to this memo.
Background
On July 18, 2011 the City Council approved an Urban Renewal Plan for the Dubuque Holy Ghost
Urban Renewal District which includes the former Holy Ghost Convent and School. The tax
increment ordinance allows for TIF collection on these properties.
Discussion
Adoption of the proposed tax increment ordinance is needed to establish the use of tax
increment financing to the 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 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 create the base valuations for the Original Project Areas.
Recommendation
I recommend that the City Council approve the tax increment ordinance for the Holy Ghost
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 area.
Action Step
The action step is for the City Council to approve the tax increment ordinance attached hereto.
attachment
F: \USERS\Econ Dev \Urban Renewal \Holy Ghost UR District \TIF Ordinance \20110719 Holy Ghost TIF ord memo.docx
Prepared by Dave Heiar, Economic Development Director, 50 W. 13 Street, Dubuque, IA 52001, 563 -589 -4393
Retum to Kevin S. Fimstahl, Acting City Clerk, 50 W. 13"' Street, Dubuque, IA 52001, 563 -589 -4120
ORDINANCE NO. 39 -11
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Doc ID 007119360005 Type GEN
Kind ORDINANCE
Recorded: 08/05/2011 at 04:21:10 PM
Fee Amt: $27.00 Page 1 of 5
Dubuque County Iowa
Kathy Flynn Thurlow Recorder
File2011- 00011012
AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES
LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY
LOCATED WITHIN THE HOLY GHOST 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 WITH THE HOLY GHOST URBAN RENEWAL DISTRICT
REDEVELOPMENT PROJECT
WHEREAS, the City Council of the City of Dubuque, Iowa, after public
notice and hearing as prescribed by law and pursuant to Resolution No. 234 -11
adopted on July 18, 2011, adopted an Urban Renewal Plan for an urban renewal
area known as the Holy Ghost Urban Renewal District (the "Project Area "), which
Project Area includes the lots and parcels described in said Urban Renewal Plan;
and
WHEREAS, expenditures and indebtedness are anticipated to be incurred
in the future to finance urban renewal project activities carried out in furtherance
of the foregoing Urban Renewal Plan; and
WHEREAS, the City Council desires to provide for the division of revenue
from taxation in the Project Area in accordance with the provisions of Section
403.19 of the Code of Iowa, as amended; and
WHEREAS, the following enactment is necessary to accomplish the
objectives described in the premises.
OFFICIAL
PUBLICATION
ORDINANCE NO. 39-11
AN ORDINANCE
PROVIDING THAT
GENERAL PROPERTY
TAXES LEVIED AND
COLLECTED EACH
YEAR ON . ALL
PROPERTY LOCATED
WITHIN THE HOLY
GHOST 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 DUBU-
QUE, DUBUQUE COM-
MUNITY SCHOOL
DISTRICT, AND
OTHER TAXING DIS-
TRICTS, BE PAID TO A
SPECIAL FUND FOR
PAYMENT OF PRIN-
CIPAL AND INTEREST
ON LOANS, MONIES
ADVANCED TO AND
INDEBTEDNESS, IN-
CLUDING BONDS
ISSUED OR TO BE
ISSUED, INCURRED
BY SAID CITY IN
CONNECTION WITH
THE HOLY GHOST
URBAN RENEWAL
DISTRICT REDEVEL-
OPMENT PROJECT
WHEREAS, the City
Council of the City of
Dubuque, Iowa, after
public notice and
hearing as prescribed
by law and pursuant to
Resolution No. 234-11
adopted on July 18,
2011, adopted an Urban
Renewal Plan for an
urban renewal area
known as the Holy
Ghost Urban Renewal
District (the "Project
Area "), which Project
Area includes the lots
and parcels described
in said Urban Renewal
Plan; and
WHEREAS, expendi-
tures and indebtedness
are anticipated to be
incurred in the future
to finance urban
renewal project activ-
ities carried out in
furtherance of the
foregoing Urban
Renewal Plan; and
WHEREAS, the City
Council' desires to
provide for the division
of revenue from
taxation in the Project
Area in accordance
with the provisions of
Section 403.19 of the
Code of Iowa, as
amended; and
WHEREAS, the
following enactment is
necessary to accom-
plish the objectives
described in the
premises.
NOW, THEREFORE, BE
IT ORDAINED BY THE
CITY COUNCIL OF THE
CITY OF DUBUQUE,
IOWA, THAT:
Section 1: For
purposes of this
Ordinance, the follow-
ing terms shall have
the following mean-
ings:
(a) Project Area
shall mean that portion
of the City of Dubuque,
Iowa described in the
Urban Renewal Plan for
the Holy Ghost Urban
Renewal District
approved by Resolu-
tion No. 234 -11 on July
18, 2011, which Project
Area includes the lots
and parcels located
within the area now
legally described as
follows:
Lot 1 of 1 and Lot 2 of
1 of Paragon Square in
the City of Dubuque,
Dubuque County, Iowa;
and also including
public right -of -way of
Central Avenue abut-
ting thereto.
(b) Urban Renewal
Plan shall mean the
Urban Renewal Plan for
the Project. Area ap-
proved in Resolution
No. 234 -11 on July 18,
2011.
Section 2: The taxes
levied on the taxable
property in the 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 from
and after the effective
date of this Ordinance
shall be divided as
hereinafter in this
Ordinance provided.
1 • Section 3: That por-
tion 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
propertyrin the Project
Area upon the total
sum of the assessed
value of the taxable
property in the Project
Area, as shown on the
assessment roll as of
January, 1 of the
calendar year preced-
ing the first calendar
year in which the City
of Dubuque certifies to
the County Auditor the
amount of loans,
advances, indebted=
ness, or bonds payable
from the division of
property tax revenue
described herein
(which certification is
directed to be made
during the 2011
calendar year), 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 Project Area.
Section 4: That
portion of the taxes
each year in excess of
the base period taxes
for the Project Area,
determined as pro-
vided in Section 3 of
this Ordinance, shall be
allocated to and when
collected be paid into a
special tax increment
fund hereby estab-
lished by the City of
Dubuque to pay the
principal of and
interest on loans,
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 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, but only
to the extent author-
ized in 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 Project Area with-
out any limitation as
hereinabove provided.
Section 5: Unless or
until the total assessed
valuation of the
taxable property in the
Project Area exceeds
the total assessed
value of the taxable
property in said area
as shown by the
assessment roll refer-
red to in Section 3 of
this Ordinance, all of
the taxes levied and
collected upon the
taxable property in the
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 indebt-
edness 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
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 ordi-
nances or parts of
ordinances in conflict
with the provisions of
this Ordinance are
hereby repealed. The
provisions of this
Ordinance are intend-
ed and shall be
construed so as-to fully
implement the pro-
visions of Section
403.19 of the Code of
Iowa, as amended,
with respect to the
division of taxes from
property within the
Project Area as
described above. In the
event that any
provision of this
Ordinance shall be
determined to be
contrary to law, it shall
not affect- other pro-
visions or application
of this Ordinance
which shall at all times
be construed to fully
invoke the provisions
of Section 403.19 of the
Code -of Iowa with
reference to ' the
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 1st day of August,
2011.
/s /Roy D. Buol, Mayor
Attest: /s /Kevin 5.
Firnstahl,
Acting City Clerk
Published officially in
the Telegraph Herald
Newspaper the 1st day
of August, 2011.
Read second time:
August, 1, 2011
Read third time:
August, 1, 2011
Passed and approved:
August, 1, 2011
Published: August, 5,
2011,
It 8/5
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: August 05, 2011, and for which the charge is $70.38.
V
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this 49 day of � , 20 // -
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERME
Cornmleslon Number 154
Prepared by Dave Heiar, Economic Development Director, 50 W. 13 Street, Dubuque, IA 52001, 563 -589 -4393
Return to Kevin S. Firnstahl, Acting City Clerk, 50 W. 13'" Street, Dubuque, IA 52001, 563 -589 -4120
ORDINANCE NO. 39 -11
AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES
LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY
LOCATED WITHIN THE HOLY GHOST 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 WITH THE HOLY GHOST URBAN RENEWAL DISTRICT
REDEVELOPMENT PROJECT
WHEREAS, the City Council of the City of Dubuque, Iowa, after public
notice and hearing as prescribed by law and pursuant to Resolution No. 234 -11
adopted on July 18, 2011, adopted an Urban Renewal Plan for an urban renewal
area known as the Holy Ghost Urban Renewal District (the "Project Area "), which
Project Area includes the lots and parcels described in said Urban Renewal Plan;
and
WHEREAS, expenditures and indebtedness are anticipated to be incurred
in the future to finance urban renewal project activities carried out in furtherance
of the foregoing Urban Renewal Plan; and
WHEREAS, the City Council desires to provide for the division of revenue
from taxation in the Project Area in accordance with the provisions of Section
403.19 of the Code of Iowa, as amended; 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:
Section 1: For purposes of this Ordinance, the following terms shall have
the following meanings:
(a) Project Area shall mean that portion of the City of Dubuque,
Iowa described in the Urban Renewal Plan for the Holy Ghost Urban
Renewal District approved by Resolution No. 234 -11 on July 18, 2011,
which Project Area includes the lots and parcels located within the area
now legally described as follows:
Lot 1 of 1 and Lot 2 of 1 of Paragon Square in the City of
Dubuque, Dubuque County, Iowa; and also including public
right -of -way of Central Avenue abutting thereto.
(b) Urban Renewal Plan shall mean the Urban Renewal Plan
for the Project Area approved in Resolution No. 234 -11 on
July 18, 2011.
Section 2: The taxes levied on the taxable property in the 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 from and after the effective date of this Ordinance shall
be divided as hereinafter in this Ordinance provided.
Section 3: 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 Project Area upon the total sum of the assessed value ,of the
taxable property in the Project Area, as shown on the assessment roll as of
January 1 of the calendar year preceding the first calendar year in which the City
of Dubuque certifies to the County Auditor the amount of loans, advances,
indebtedness, or bonds payable from the division of property tax revenue
described herein (which certification is directed to be made during the 2011
calendar year), 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 Project Area.
Section 4: That portion of the taxes each year in excess of the base period
taxes for the Project Area, determined as provided in Section 3 of this Ordinance,
2
shall be allocated to and when collected be paid into a special tax increment fund
hereby established by the City of Dubuque to pay the principal of and interest on
loans, 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 fhe 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 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, but only to the extent authorized in
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 Project
Area without any limitation as hereinabove provided.
Section 5: Unless or until the total assessed valuation of the taxable
property in the Project Area exceeds the total assessed value of the taxable
property in said area as shown by the assessment roll referred to in Section 3 of
this Ordinance, all of the taxes levied and collected upon the taxable property in
the 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 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 fully implement the
provisions of Section 403.19 of the Code of Iowa, as amended, with respect to
the division of taxes from property within the Project Area as described above. In
the event that any provision of this Ordinance shall be determined to be contrary
to law, it shall not affect other provisions or application of this Ordinance which
shall at all times be construed to fully invoke the provisions of Section 403.19 of
the Code of Iowa with reference to the 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.
2011.
PASSED AND APPROVED this 1st day of August
-3
ATTEST:
91
Ac ing Cit Clerk
Read first time:
Read second time:
Read third time:
d
Mayor
August 1, 2011
August 1, 2011
August 1, 2011
PASSED AND APPROVED: August 1, 2011
PUBLISHED: August 1, 2011
F: \USERS \Econ Dev \Urban Renewal\Holy Ghost UR District \TIF Ordinance12011.1 Holy Ghost TIF Ordinance.docx