Garfield Place Urban Revitalization Area - Ordinance
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CITY OF DUBUQUE, IOWA
MEMORANDUM
October 12, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Garfield Place Urban Revitalization District
Community and Economic Development Director Jim Burke is recommending
approval of the Garfield Place Urban Revitalization District and the associated plan.
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I concur with the recommendation and respectfully request Mayor and City Council
approval.
m~U ~;Jl
Michael C. Van Milligen ----
MCVM/ksf
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Jim Burke, Community and Economic Development Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
October 11, 2000
TO:
Milligen, City Manager
FROM:
mes D. Burke, Community & Economic Development Director
RE:
Garfield Place Urban Revitalization Area
INTRODUCTION
This memorandum presents for adoption by the City Council a revised ordinance approving the
proposed Garfield Place Urban Revitalization Area.
DISCUSSION
On September 18, the City Council held a public hearing on a proposed urban revitalization plan
for the Garfield Place Urban Revitalization Area. The plan provides the authority for partial
exemption of property taxes to support the development of a new single room occupancy (SRO)
facility on property at 511 Garfield Avenue.
Despite the fact that there was no opposition to the proposal, the Council was not able to adopt
the plan at the September hearing because the Iowa Code requires that property owners and
tenants of a proposed district be given thirty days following the first hearing to petition for a
second hearing. A second hearing must be held only if the City receives within the thirty days a
valid petition from at least ten percent of owners or tenants within the designated revitalization
area. If such a petition is submitted, the City Council may set a second public hearing and
proceed to act upon the proposed Plan following that hearing. If no such petition is presented,
City Council may simply adopt the proposed plan following the thirty day period.
Since the 3D-day period following the September public hearing does not end until after the City
Council meeting of October 16, my previous memorandum said that the Council could approve
the Ordinance adopting the Plan at the next meeting on November 6. However, at the request of
David Harris that we expedite the process, I have conferred with Corporation Counsel Barry
Lindahl about a revision to the proposed Ordinance. The revised Ordinance which may be
adopted by the Council on October 16, directs the City Clerk to publish the Ordinance following
the 3D-day period if no valid petition for a second hearing is filed. This should save the
developer two to three weeks of waiting time.
RECOMMENDATION
I recommend that the City Council approve the revised Ordinance authorizing adoption of the
Garfield Place Urban Revitalization Plan.
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ORDINANCE NO. 82-00
AN ORDINANCE ESTABLISHING THE GARFIELD PLACE URBAN
REVIT ALIZA TION AREA AS AN URBAN REVIT ALIZA TION AREA
PURSUANT TO CHAPTER 404 OF THE CODE OF IOWA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Garfield Place Urban Revitalization Area as hereinafter described
shall hereafter be designated an urban revitalization area pursuant to Chapter 404 of the Code of
Iowa 1999, to wit:
Lot 1 of Lot 1 of Lot 3 ofthe subdivision of Mineral Lot 113A, in the
City of Dubuque, Dubuque County, Iowa according to the recorded plat thereof.
Section 2. That the Garfield Place Urban Revitalization Area Plan as hereto attached is
hereby adopted and approved and the properties within said described area shall be subject to the
provisions of said Plan.
Section 3. That the Garfield Place Urban Revitalization Area Plan shall hereafter be on
file in the City Clerk's Office, City Hall, Dubuque, Iowa.
Section 4. That the City Clerk is hereby authorized and directed to publish this
Ordinance on or after October 19,2000, provided that no valid petition has been received by the
City Clerk prior to that date requesting a second public hearing, and in the event such petition has
been received, then this Ordinance shall be null and void.
Passed, approved and adopted this 16th day of October
,2000.
Attest:
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Garfield Place
Urban Revitalization Area Plan
September, 2000
Introduction
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404, authorizes
cities to designate an area of the City as a revitalization area. Improvements to
qualified real estate within these designated areas may then become eligible for an
exemption from property taxes for a specified number of years. To implement the
provisions of the Act, the City must prepare a revitalization plan for each designated
area. This document is the plan addressing the requirements of the Act for an area to
be known as the "Garfield Place" Urban Revitalization Area.
Area eligibility criteria
The City Council has determined that this area is eligible for designation as a
revitalization area as it meets one of the criteria outlined in Iowa Code. Specifically,
the City Council has found this area to qualify as an economic development area as
defined by Section 403.17 of the Iowa Code. This definition includes housing
development where there is an inadequate supply of affordable, decent and safe
housing and the provision of that housing will help to retain or attract industry or meet
the needs of the elderly or disabled or of a population which may not be adequately
served.
Designating this area as an Urban Revitalization Area will assist the provision of
housing to a population which is not adequately served. The proposed Single Room
Occupancy facility will provide single men with decent housing at affordable rent. The
property tax exemption will make this project feasible.
Legal description
The property to be included in the Garfield Place Revitalization Area is located at 511
Garfield Avenue, legally described as:
Lot 1 of Lot 1 of Lot 3 of the subdivision of Mineral Lot 113A, in the County of
Dubuque, City of Dubuque, Iowa, according to the recorded plat thereof.
A map of the area boundaries is attached as Exhibit A.
Current assessed value
The current assessed valuation of the area, which is the property described above as of
April 1, 2000, at $24,630 which is $11,950 for the building (which has been demolished)
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and $12,680 which is the value of the land.
Property ownership
The current property owner within the area, as of June 20,2000 is:
Ray Davis, 515 Garfield, Dubuque, IA.
Upon commitment of financing, the property will be sold to Scott and Dawn
Potter, 17131 Freund Road, Dubuque, IA.
Existing zoning classification
The existing zoning as of June 20, 2000 is OR (Office Residential) for the entirety of the
property within the boundaries of the Urban Revitalization Area. The zoning was
changed from R-2A (Alternate two-family residential district) on May 1, 2000, to allow
for the construction of the 18 room facility.
Existing and proposed land use
The existing land use was converted from a vacant building to a vacant lot on or about
June 3, 2000.
The proposed land use is for an 18 room single room occupancy (SRO) facility for low-
and moderate-income men. Rents will be limited to $242 per month for low-income
residents. Rents may be higher for moderate income residents. The income and rent
constraints will remain in place for a 20-year term.
City services
The are no current plans to expand or improve City services to this area. Currently the
area enjoys the same level of City services as most other areas of the City.
Exemption details
· Only residential property, whether assessed as residential or commercial
shall be eligible for property tax exemption.
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"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 increase the actual value by at least fifteen percent or ten percent in
the case of real property assessed as residential property.
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"Qualified real estate" also means land upon which no structure existed at
the start of new construction, which is located in a designated
revitalization area and upon which new construction has been added
during the time the area was so designated.
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Property tax exemption shall be available only for 'improvements'.
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"Improvements" includes rehabilitation and additions to existing structures
as well as new construction on vacant land or land with existing
structures.
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"Actual value added by improvements" means the actual value added as
of the first year for which the exemption was received.
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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.
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Improvements must result in that structure meeting applicable building
code requirements of the City of Dubuque.
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The actual value of the improvements must result in an increase in
assessed value by at least fifteen percent or ten percent in the case of
real property assessed as residential property; before a tax exemption
may be applied. Each year that an application is made for tax exemption,
the assessed value must have increased in that year by at least fifteen
percent or ten percent in the case of real property assessed as residential
property.
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The property tax exemption schedule, in accordance with 1999 Code of
Iowa, Chapter 404.3 Subsection 4, is as follows:
a ten-year, 100% exemption of the actual value added by the
improvements.
· The designation of the Garfield Place area as an Urban Revitalization
Area will remain in effect only until the area is fully redeveloped or for
three years, whichever occurs first. Upon repeal or expiration of the
ordinance establishing the revitalization area, all existing exemptions
would continue until their previously established expiration date.
Industrial revenue bonds
There are no plans to issue industrial revenue bonds for revitalization projects in this
area.
Relocation
No relocation will occur due to the redevelopment of the property. There are currently
no residents or businesses located on the property and no resident or business was
forced to leave due to potential redevelopment of the property.
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Anticipated grant or loan programs
It is anticipated that the project will be funded through the Housing Trust Fund $200,000
forgivable loan (Local Housing Assistance Program - Iowa Department of Economic
Development). Addition funding of $300,000 is expected through a conventional bank
loan.
Conclusion
The Garfield Place Urban Revitalization Area will assist the redevelopment efforts of a
vacant, deteriorated property which will provide 18 units of Single Room Occupancy
housing (males only) for the citizens of Dubuque. After the ten-year property tax
exemption period elapses, the full assessed value of the property will revert to the tax
rolls to the benefit of the entire community.
This area, upon designation, will follow the procedures for application and granting of
the property tax exemption within the City of Dubuque.
Application procedure
1. The property owner must apply for an exemption by February 1 sl of the
assessment year for which the exemption is first claimed, but not later than the
year in which all the improvements are first assessed for taxation. 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.
2. 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 living on the property as of June 26, 2000.
3. The property owner has the option of submitting a proposal for an
improvement project to the City prior to submitting a formal application. If the
proposed project is in conformance with the revitalization plan, the City Council
shall, by resolution, give preliminary approval of the project. Such preliminary
approval shall not entitle the owner to exemption until the improvements have
been completed and found to be qualified. If the proposal is rejected, the owner
may submit an amended proposal.
4. 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 SI, with a statement as to which exemption applies. Applications for
exemptions for succeeding years on approved projects shall not be required.
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5. 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.
6. 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.
7. 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.
EXHIBIT A
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GARFIELD PLACE
URBAN REVITILIZATION AREA
LOCATION: 511 Garfield Avenue
LEGAL DESCRIPTION: Lot 1 of
Lot 1 of Lot 3 of the Subdivision
of Mineral Lot 113A, in the City of
Dubuque, Iowa
PARCEL ID#: 10.24.230.020
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