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Garfield Place Urban Revitalization Area - Ordinance <-- . ~ ~ 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. . 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 . . . . .. 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. t . . . . -. 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: F:\USERS'JBURKEIBURKE\IXJCS\garfieldUR.ordin. wpd . - . # .A~~#LLJ /1/~~ .q/~d20 /~~ . . . . -. 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) 1 of 6 . . . 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. . "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. . "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. . Property tax exemption shall be available only for 'improvements'. 20f6 . . . "Improvements" includes rehabilitation and additions to existing structures as well as new construction on vacant land or land with existing structures. . "Actual value added by improvements" means the actual value added as of the first year for which the exemption was received. . 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. . Improvements must result in that structure meeting applicable building code requirements of the City of Dubuque. . 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. . 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. 3of6 . . . 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. 40f6 . . . 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 A:\newarea.wpd Sof6 ~~ O' A' (j . I' 9 H~~~~~~~~~l Garfield Place Urban Revitalization Area .....<. ...., ..-.......,,~. \ ' ..... /"" , .'....'.-- .\./,<.:., ,>< '.,i "\ . -.. ,,', :' ,: -,. l i , \)~\ .~ <:~::"::~'>'(":"" '. /"..",~.' .k".w~ ,. -A:ti 1/ ," ../ ..'y // i/ " \ ',; ~t~ " . <:;V"" \\ .......---...--... -.... \ .....,;-:-:=' .-";-;..:;;.~..... .._~.... ,/ EXHIBIT A 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 gisproj\pl\kay\garfieldplace 8/8/00 "Cl cu .... "Cl .... 0 ~ cu ..c c -= In ~ -; .~ "Cl .... = ::c ~ 0 ~ = 6- ~ ~ == 0 u 0 -= <Il .... .... Q. oS cu ,.:; oS cu = ~ ..... ll:C/) .... C" = . Oil ~ = WW .:c ~ = CJ 0 :>a:(\l .... E!! ..c ~ U WC::o ~ = ::Exo - U Q = ~ a:W(\l ~ = I~~;' z ~-= .... "Cl C" 0 = ..... 0 ~ = ~I - ... .... ~-5" ..c ~~ ~ ~ ~ = 0 ;<.:: s = >-::l = .... Q , .::E a: ~ U ..... c::> ~ ',_ ::E ID U cu . Ow cu -= ~ .... 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