Old Main Urban Revitalization Area Plan AmendmentMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Old Main Urban Revitalization Area Plan
DATE: November 3, 2011
Dubuque
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AA- America city
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2007
Housing and Community Development Department Director David Harris recommends
the City Council set a public hearing for November 21, 2011 on an amendment to the
Old Main Urban Revitalization Area Plan. This amendment will reduce the required
eligible percentage of residential area in the building from 100% to 75 %, in order to
qualify for a tax exemption.
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 reducing 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.
The current Urban Revitalization Plan requires that 100% of the total square footage
must be used for residential since an urban renewal plan also exists for the same area.
The proposed amendment will provide that in order to be eligible for the tax exemption,
the property and buildings must be assessed as residential, or assessed as commercial
with three or more separate living quarters and at least 75% of the space used for
residential purposes. Following discussions with staff and review of the current urban
renewal regulations, it has been determined that the proposed amendment is
appropriate and will encourage more property owners to provide residential units in the
Old Main Street area.
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 Harris, Housing and Comunity Development Department Director
2
Masterpiece on the Mississippi
MEMORANDUM
Dubuque
itiltell
All- Ametica City
2007
TO: Michael C. Van Milligen, City Manager
FROM: David Harris, Housing and Community Development Department
SUBJECT: Amendment to Old Main Urban Revitalization Area Plan
DATE: October 28, 2011
Introduction
This memorandum recommends that the City Council review and approve a resolution to
amend the Old Main Urban Revitalization Area Plan. The amendment will reduce the
required eligible percentage of residential area in the building from one hundred percent to
seventy five percent in order to qualify for a tax exemption.
Background
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 reducing 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.
Discussion
The City's Urban Revitalization Program offers a ten year property tax exemption for
eligible improvements to residential properties in designated revitalization districts. On
December 6, 2002 the Council approved an OId Main Urban Revitalization Area Plan that
is generally located along Main Street from First to Fourth Streets and encompassing the
Five Flags Civic Center, the same area as the OId Main Historic Preservation District. The
current UR Plan requires that one hundred percent of the total square footage must be
used for residential since an urban renewal plan also exists for the same area. Property
owners in the area that create or improve residential units are unable to utilize the tax
exemption since most properties contain commercial uses on the first floor. The proposed
amendment will provide that in order to be eligible for the tax exemption, the property and
buildings must be assessed as residential, or assessed as commercial with three or more
separate living quarters and at least seventy -five percent of the space used for residential
purposes. Following discussions with staff and review of the current urban renewal
regulations, it has been determined that the proposed amendment is appropriate and will
encourage more property owners to provide residential units in the Old Main Street area.
Chapter 404 requires that a public hearing be held prior to amending the existing urban
revitalization Plan. At the public hearing, the Council will be able to adopt the Plan
amendment.
Recommendation
I recommend that the City Council approve the attached resolution directing the Old Main
Urban Revitalization Plan amendment be set for a public hearing on November 21, 2011.
At the public hearing an ordinance can be adopted which amends Plan.
Action Requested
The Action Step is for the City Council to adopt the attached resolution.
Prepared by: Aggie Tauke, Community Development Specialist
F: \USERS ATAUKE \Urban Revite \Old Main UR \Old Main UR Amend Set hrg. Council.doc
RESOLUTION NO. 369-11
A RESOLUTION ACKNOWLEDGING A PROPOSED AMENDMENT TO THE PLAN
FOR THE OLD MAIN URBAN REVITALIZATION AREA AND PROVIDING FOR A
PUBLIC HEARING
Whereas, the City Council has found that an amendment to the Old Main Urban
Revitalization Area Plan as established by Ordinance No. 87 -2002 is necessary; and
Whereas, Chapter 404 of the Code of Iowa provides that a public hearing shall
be held on a proposed amendment to the Plan for the revitalization area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the proposed amendment to the Old Main Urban Revitalization
Plan November 2011 Amendment, a copy of which is attached hereto and made a part
hereof, shall be made a matter of record and shall be available for public inspection in
the Office of the City Clerk at City Hall, 50 West 13th Street, Dubuque, Iowa.
Section 2. That the City Clerk is directed to publish notice of a public hearing on
the proposed amendment to the Old Main Urban Revitalization Area Plan to be held on
November 21, 2011 at 6:30 p.m. in the City Council Chambers, 2nd Floor, Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa 5 001.
Attest:
Passed, approved and adopted this 7th day `f
Kevin Fi tahl, City Clerk
ber ,:11.
Roy
Buol, Mayor
F: \USERS\ATAUKE \Urban Revite \Old Main UR \Old Main Amended UR.Res Pub Hrg.doc
Old Main Urban Revitalization Plan
November 2011 Amendment
1.0 Introduction
This amendment to the Old Main Urban Revitalization Area Plan amends Section
5.2 to redefine the percentage of improvements eligible for the program. All other
Sections of the Old Main Urban Revitalization Plan March 2002 remain in effect.
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.
5.0 Revitalization Program
5.2 Eligibility
For qualified improvements to be eligible for tax exemption, a building permit and
or Historic Preservation Commission approval must be obtained in accordance
with the City of Dubuque's Code of Ordinances. All qualified real estate
assessed as residential property 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, is eligible to
receive a one hundred percent exemption from taxation on the actual value
added by the improvements. The exemption is for a period of ten years.
F: \USERS\ATAUKE \Urban Revile \Old Main UR \Old Main UR Plan Amendment.Nov 2011.doc