Lake Ridge Development District_TIF OrdinanceMasterpiece on the Mississippi
Dubuque
bitti
All-America City
III I
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Tax Increment Ordinance for the Lake Ridge Economic Development
District
DATE: August 11, 2011
Economic Development Director Dave Heiar is recommending approval of an ordinance
creating the tax increment financing district for the Lake Ridge Economic Development
District to facilitate the Rose Development of the $9.3 million 70 -unit affordable assisted
living facility on Lake Ridge Drive. This is consistent with the Urban Renewal Plan
approved by the City Council on August 1, 2011.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
•
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Dave Heiar, Economic Development Director
Masterpiece on the Mississippi
Dubuque
AI- anedca aly
11111!
2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Tax Increment Ordinance for the Lake Ridge Economic Development
District
DATE: August 2, 2011
Introduction
This memorandum transmits for City Council review and adoption an ordinance creating the tax
increment financing district for the Lake Ridge Economic Development District. The proposed
ordinance was reviewed by the City's bond counsel and is attached to this memo.
Background
On August 1, 2011 the City Council approved an Urban Renewal Plan for the Lake Ridge
Economic Development District which includes property along Lake Ridge Drive near Cedar
Cross Road. The tax increment ordinance allows for TIF collection on these properties.
Rose Development, controlled by Greg McClenahan, is proposing to build a $9.3 million 70 -unit
'affordable assisted living facility' on Lake Ridge Drive. This would be the sixth Rose
development built in Iowa since 2005. The others are located in Ames, Des Moines, East Des
Moines, Waterloo and Council Bluffs. The Police Department checked and these facilities do
not create any policing problems.
The Rose developments have all been assisted by the Iowa Finance Authority through the Low -
Income Housing Tax Credit Program. Award of tax credits reduces the need for conventional
mortgage financing and lowers development costs, allowing lower rents. McClenahan has
additionally used a variety of other assisted financing at his developments, including urban
revitalization tax abatement, enterprise zone credits and HOME Program grants.
Residents in these projects must all qualify by income, at 60% or less of area median income.
Many qualify for Section 8 housing vouchers and Medicaid services. Rents are capped at no
more than 30% of tenant income. The services the resident receives are provided by a
contracted licensed health care provider, such as the VNA. The costs for those services are paid
by Medicaid HCBS waiver programs. With this package of subsidies, the low- income resident
can afford the full spectrum of housing and supported services that would otherwise approach
$3000 per month.
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 Lake Ridge
Economic Development 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 \Lake Ridge \TIF Ordinance\20110802 Lake Ridge TIF ord memo.docx
Doc ID 007136530005 Type GEN
Kind ORDINANCE
Recorded: 08/25/2011 at 02:53:23 PM
Fee Amt: $27.00 Page 1 of 5
Dubuque County Iowa
Kathy Flynn Thurlow Recorder (
Fi1e2011- 00011916
Prepared by: David Heiar, Economic Development, 50 W. 13th Street, Dubuque, IA 52001 (563) 589 -4393
Return to: Kevin Firnstahl, City Clerk, City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001, 563.589.4120.
OFFICIAL PUBLICATION
ORDINANCE NO. 42 -11
AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED
AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE
LAKE RIDGE ECONOMIC DEVELOPMENT 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 LAKE RIDGE
ECONOMIC DEVELOPMENT 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. 247 -11
adopted on August 1, 2011, adopted an Urban Renewal Plan for an urban
renewal area known as the Lake Ridge Economic Development 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.
C; Cle��0a"1`�
th
Prepared by: David Heiar, Economic Development, 50 W. 13 Street, Dubuque, IA 52001 (563) 589-4393
th
Return to: Kevin Firnstahl, City Clerk, City of Dubuque, 50 W. 13 Street, Dubuque, IA 52001, 563.589.4120.
OFFICIAL PUBLICATION
ORDINANCE NO. 42-11
AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED
AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE
LAKE RIDGE ECONOMIC DEVELOPMENT 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 LAKE RIDGE
ECONOMIC DEVELOPMENT 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. 247-11
adopted on August 1, 2011, adopted an Urban Renewal Plan for an urban
renewal area known as the Lake Ridge Economic Development 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) Proiect Area shall mean that portion of the City of Dubuque,
Iowa described in the Urban Renewal Plan for the Lake Ridge Economic
Development District approved by Resolution No. 247 -11 on August 1,
2011, which Project Area includes the lots and parcels located within the
area now legally described as follows:
Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition in the City of
Dubuque, Dubuque County, Iowa.
(b) Urban Renewal Plan shall mean the Urban Renewal Plan
for the Project Area approved in Resolution No. 247 -11 on
August 1, 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,
shall be allocated to and when collected be paid into a special tax increment fund
2
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 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 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.
3
PASSED AND APPROVED this 15th day of August
August 15, 2011
PASSED AND APPROVED: August 15, 2011
PUBLISHED: August 19, 2011
ATTEST:A ing City C erk
Read first time:
Read second time: August 15, 2011
Read third time: August 15, 2011
4
F: \USERS \Econ Dev \Urban Renewal \Lake Ridge \TIF Ordinance\2011.1 Lake Ridge TIF Ordinance.docx
OFFICIAL
PUBLICATION
ORDINANCE NO. 42 -11
AN ORDINANCE
PROVIDING n ; i;,T
GENERAL PRO -;
TAXES LEVIED
COLLECTED EACH I
YEAR ON ALL
PROPERTY LOCATED
WITHIN THE LAKE
RIDGE ECONOMIC
DEVELOPMENT DIS-
TRICT OF THE CITY
OF DUBUQUE,
COUNTY OF DUBU-
QUE, STATE OF IOWA,
BY AND FOR
BENEFIT Of
STAVE OF IOWA, 1
OF DUBI'l,Q,,E
COUNTY OF , DUBt I
QUE, DUBUQUE COM-
MUNITY SCHOOL
DISTRICT, AND
OTHER TAXING
DISTRICTS, BE PAID
TO A SPECIAL FUND
FOR PAYMENT Of
PRINCIPAL AHD
INTEREST ON LOANS,
MONIES ADV � D
TO AND I. ■ ! ,_
EDNESS, INCL d DING
BONDS ISSUED OR TO
BE ISSUED, INCURRED
BY SAID CITY IN
CONNECTION WITH
THE LAKE RIDGE
ECONOMIC DEVELOP-
MENT 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. 247 -11
adopted on August 1,
2011, adopted an Urban
Renewal Plan for an
urban renewal area
known as the Lake
Ridge Economic
Development 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
t finance urban
renewal project activi-
ties carried out in
furtherance of the
fore 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
, • ,NyHER r ;' ; the,:
%tiovri ng•,ena t7ent is
WecesSary to accom-
plish the objectives' •
described r in the
'I 'is
NDW1.i�`hIEREFORE, BE
, BY THE
'C WCIL' THE
CITY' OF 'DUBUQUE,
IOWA, THAT:
Section 1: For pur-
poses of this Ordi-
nance, the following
terms • shall have the l i
following meanings:
(a) Project ,
shall mean tha portion
of the City of Dubuque;
Iowa described in the
Urban Renewal Plan for
the . Lake ''' 'Ridge
Ecopomic Deyelopn'lent
District approved by
Resolution No. 247 -11
on Augaist 1, 2011,
which Project Area
includes the lots and
parcels located within
the • area now legally
described as follows:
Lot 2 of Lot 2 of Cedar
Lake Plaza 3rd Addition
in the City of Dubuque,
Dubuque County; Iowa.
(b) Urban Renewa4
Plan. shall mean the
Urban Renewal Planfor-
the" ' Project Area
approved in Resolution
No. 247 -11 on August 1,
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 por-
tion of the taxes which
would be produced by
I 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 • pre -
ceding : the first
1 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 Tor the taxing oistncts
herein (which certifi- in the same manner as
cation is directed to be all other property
made during the 2011 taxes.
calendar year), shall be • Section 6: At such
allocated to and when time as the loans,
collected be paid into monies advanced,
the fund for the bonds and interest
respective taxing thereon and indebted-
district as taxes by or '.ness of the City of
for said taxing district Dubuque referred to in
into which all other Section 4 hereof have
property taxes are been paid, all monies
paid. The taxes so thereafter received
determined shall be from taxes upon the
referred herein as the taxable property' In the
"base period taxes" for Project Area shall be
such Project Area. paid into the funds for
Section 4: That por- the respective taxing
lion of the taxes each districts in the same
year in excess of the manner as taxes on all
base period taxes for other property.
the Project Area, deter- Section T. All ordi-
Mined as provided in nances or parts of
Section 3 of this Ordi- ordinances irP conflict
;nance, shall be allb- with the provisions of
cated to and when this Ordinance are
co llected be paid intq�a hereby repealed. _The
4pecial tax increment provisions of this
fund hereby estab- Ordinance are intend -
Ilshed by the City of ed and shall be
Dubuque to pay the construed so as to fully
principal of and inte- implement the provi-
rest on loans, monies sions of Section 403.19
advanced to, or indebt- of the Code of Iowa, as
edness, whether fund- amended, with respect
ed, refunded, assumed to the division of taxes
or otherwise, including from property within
bonds issued under the'' Project , Area as
authority of Section described above. In the
403.9 or Section 403.12 event that any provi-
of the Code of Iowa, sion of this Ordinance
incurred by the City of shad be determined to•
Dubuque, Iowa to he contrary .' ho Jav
finance or refinance, in shall not' affect ,other
whole or in part, urban , provisions.! or applica
renewal projects under- I" tidn of tlijs! Ordinance '
! taken within the ,Pro-1, which shall at alitimes
tect Area pursuant to be co rued to fully
the Urban Renewal ' to 4pra Ylsbns
Plan, except that taxes Of Se ' 4031 of:the
for the regular and Code qfi Iowa,`: with
' voter - approved physi- refeee`nce, to fhe Pro -
cal plant and equip- jectAre'andtheterri-
ment levy of a school torY contained therein.
district imposed pur- i, Section 8: This Ordi-
suant to Section 298.2, . nance,shall be in, ,effect
but only to the extent after' its final passage,
author=ized in Section a royal and publica-
, X3:19(2), and taxes for ! tion as provided by
thee p yment of bonds l
andtN i terest of each Passed and approved
taxing district shall be this , 15th day of
collected against all August, .2011.
taxable property within /s/Roy D. Buol, Mayor
the Project Area with Attest /s /Kevin S.
out any limitation as Firnstahl,
hereinabove provided. Acting City Clerk
Section 5: Unless or Published officially in
until the total assessed the Telegraph - Herald
valuation of the I Newspaper August 19,
taxable, property in the 201L
Project Area exceeds / /K S. Firnstahl,
the total''' assessed , • Aoting,CityClerk
value of the taxable • Read first= time:
property in said area August 15, 2011
as shown by the Read second time:
assessment roll refer - August 15, 2011
red to in Section 3 of Read third time:
this Ordinance, all of August•15,2011
the taxes levied and passed and approved:
collected upon the • August 15, 2011
taxable property in the Published: August 19,
' Project Area shall be! 2011
fa
paid into the funds r[ 7 9 • _ the respective taxing',.',-' .,
districts as taxes by or
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 19, 2011, and for which the charge is $70.17.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this , day of �� f , 20 // .
7 12a-4-3-Se- e_
Pjte
Notary Public in and for Dubuque County, Iowa.
MARY K, WESTERMEYE a
Commission Number 154a^5
VikOonint..,11:—FEA