Storm Water Fees for Spec Building_Spiegel Family Realty, DICWMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Storm Water Fees for Spec Building
DATE: August 31, 2011
Dubuque
itittil
All- AmedcaCity
1
2007
Economic Development Director Dave Heiar is recommending that Spiegel Family
Realty Company Iowa, LLC not be required to pay the storm water fee on the spec
building in Dubuque Industrial Center West until the property is leased or sold, but no
later than December 1, 2013. Funds from industrial land sales are available to cover
the costs of the fees ($4,920 per year).
To entice local communities and developers to invest in constructing spec buildings
Iowa Code Section 427B, allows local governments to provide for property tax
exemption for spec buildings until the buildings are leased and /or sold. The City
Council adopted an ordinance (Dubuque Code Section 15 -60) to take advantage of this
tax incentive for speculative buildings.
In 2008, GDDC and City Staff identified certain parameters they believed would be
desirable for outside companies looking to locate in Dubuque. GDDC had seen an
increase in requests for existing industrial buildings and it was anticipated that having
"building ready space" would increase the City's chances to attract new business.
The City Council entered into a development agreement with Spiegel Family Realty
Iowa, LLC on September 15, 2008 to sell property on contract, in return for the
construction of a new manufacturing /warehouse /office facility. Spiegel Family Realty of
Iowa, LLC constructed a 200,000 sq. ft. spec building in the Dubuque Industrial Center
West.
In the past couple of years, GDDC has successfully used this building to entice
prospective businesses to visit our community. Unfortunately, the recession of the past
couple of years has made most businesses reluctant to relocate and /or expand.
The spec building is connected to but not currently served by water and sewer.
Therefore, there is no monthly City utility billing for this address. Staff recently
discovered that the City was not charging this property for monthly storm water fees.
According to the City ordinance all properties must pay a storm water fee, even if the
property is not currently be served by other City utilities.
Section 13- 4 -2(B) of the City Code states that the storm water fee will be charged to "all
Tots" that discharge storm water.
The monthly storm water fee for this property is $410 ($4,920 annual fee).
Based on the willingness of this developer to take the risk of constructing a spec
building for the benefit of our industrial recruitment efforts, it is my recommendation that
the City use land sales from the DICW to cover the monthly storm water fee until the
building is leased or sold, but not later than December 1, 2013 which is the termination
date of the land contract agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
M chael C. Van Milligen
MCVM:jh
Attachment
cc: Rick Dickinson, Executive Director and Chief Operating Officer,
Greater Dubuque Development Corp.
Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Dave Heiar, Economic Development Director
Aaron DeJong, Assistant Economic Development Director
2
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Storm Water Fees for Spec Building
DATE: August 30, 2011
Dubuque
1 111
2007
INTRODUCTION
This memorandum is to discuss and make recommendations related to storm water
fees for the industrial spec building located in the Dubuque Industrial Center West and
owned by Spiegel Family Realty Company Iowa, LLC.
BACKGROUND
To entice local communities and developers to invest in constructing spec buildings
Iowa Code Section 427B, allows local governments to provide for property tax
exemption for spec buildings until the buildings are leased and /or sold. The City
Council adopted an ordinance (Dubuque Code Section 15 -60) to take advantage of this
tax incentive for speculative buildings.
In 2008, GDDC and City Staff identified certain parameters they believed would be
desirable for outside companies looking to locate in Dubuque. GDDC had seen an
increase in requests for existing industrial buildings and it was anticipated that having
"building ready space" would increase the City's chances to attract new business.
The City Council entered into a development agreement with Spiegel Family Realty
Iowa, LLC on September 15, 2008 to sell property on contract, in return for the
construction of a new manufacturing /warehouse /office facility. Spiegel Family Realty of
Iowa, LLC constructed a 200,000 sq. ft. spec building in the Dubuque Industrial Center
West.
In the past couple of years, GDDC has successfully used this building to entice
prospective businesses to visit our community. Unfortunately, the recession of the past
couple of years has made most businesses reluctant to relocate and /or expand.
DISCUSSION
The spec building is connected to but not currently served by water and sewer.
Therefore, there is no monthly City utility billing for this address. Staff recently
discovered that the City was not charging this property for monthly storm water fees.
According to the City ordinance all properties must pay a storm water fee, even if the
property is not currently be served by other City utilities.
Section 13- 4 -2(B) of the City Code states that the storm water fee will be charged to "all
lots" that discharge storm water.
The monthly storm water fee for this property is $410 ($4,920 annual fee).
Based on the willingness of this developer to take the risk of constructing a spec
building for the benefit of our industrial recruitment efforts, it is my recommendation that
the City use land sales from the DICW to cover the monthly storm water fee until the
building is leased or sold, but not later than December 1, 2013 which is the termination
date of the land contract agreement.
RECOMMENDATION /ACTION STEP
I am recommending City Council approve payment of the storm water fee with Spiegel
Family Realty Company Iowa, LLC for the spec building property until the property is
leased or sold but not later than December 1, 2013.
F: \USERS \Econ Dev \Spiegel Family Realty Company\20110830_ Spiegel Spec Building Storm Water Fee Memo.docx
2