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Garfield Pl Urban Revite Area amendment i5~~~E ~~~ MEMORANDUM January 21, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amended and Restated Garfield Place Urban Revitalization Area Plan Housing and Community Development Department Director David Harris recommends City Council approval to amend and restate the existing Garfield Place Urban Revitalization Area Plan to add two adjoining lots to allow property tax exemption for a proposed 12-room single-room occupancy facility at 601 Garfield Avenue and extends the duration of the plan. The amendment adds 525/527Garfield and 601 Garfield to the Garfield Place Urban Revitalization Area and extends the duration of the plan for three years. The proposed project includes demolition of an existing vacant 11-unit SRO and construction of a fourth SRO with rooms for 12 low-moderate income men at 601 Garfield Avenue. 525/527 Garfield contains a mixed residential/commercial building which will remain and no tax exemption will be provided. Davis Place LLC, contract owner of 601 Garfield, has applied to the Iowa Department of Economic Development for HOME Program funds for a $600,000 forgivable loan. They are requesting the urban revitalization tax exemption to ensure the feasibility of the project. There are currently 19 residents at 511 Garfield Avenue, 19 residents at 513 Garfield and 12 residents at 521 Garfield. 601 Garfield has been vacant for two years. I concur with the recommendation and respectfully request Mayor and City Council approval. (1) I:~ti-- Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director ~~~E ~~~ MEMORANDUM January 17, 2006 TO: Michael C Van Milligen, City Manager FROM: David ~~iS' Housing and Community Development Department SUBJECT: Amended and Restated Garfield Place Urban Revitalization Area Plan Introduction This memorandum recommends that the City Council adopt the ordinance approving the Amended and Restated Garfield Place Urban Revitalization Area Plan. Background In December the City Council adopted a resolution setting a public hearing for February 6, 2006 on the Amended and RestatedGarfield Place Urban Revitalization Area Plan. The amended plan will add two adjoining lots to allow property tax exemption for a proposed 12-room single-room occupancy (SRO) facility at 601 Garfield Avenue and extends the duration of the plan. Discussion The amendment adds 525/527Garfield and 601 Garfield to the Garfield Place Urban Revitalization Area and extends the duration of the plan for 3 years. The proposed project includes demolition of an existing vacant 11 unit SRO and construction of a fourth SRO with rooms for 12 low-moderate income men at 601 Garfield Avenue. 525/527 Garfield contains a mixed residential/commercial building which will remain and no tax exemption will be provided. Davis Place LLC, contract owner of 601 Garfield, has applied to the Iowa Department of Economic Development for HOME Program funds for a $600,000 forgivable loan. They are requesting the urban revitalization tax exemption to ensure the feasibility of the project. There are currently19 residents at 511 Garfield Avenue, 19 residents at 513 Garfield and 12 residents at 521 Garfield. 601 Garfield has been vacant for two years. The amended and restated plan will add the adjoining lots to the district and allow for new construction, an improvement for which property tax exemption will be requested. The original Garfield Place Urban Revitalization Area Plan also provided for new construction, which has been completed and tax exemption received Chapter 404 provides for a public comment period prior to the adoption of an urban revitalization plan. Additionally, the City's Code of Ordinances requires comment by the Long Range Planning Commission on any urban revitalization plan. Based upon these requirements, the Council set a public hearing for February 6 2006 that provided a 30 day comment period on the amended plan. The property owner and tenants were notified. The Long Range Planning Commission reviewed and approved the plan at their December 21 st meeting. At the public hearing, the Council will be able to approve the plan and pass a first reading of an ordinance designating the property as an urban revitalization area. 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, the City Council may simply adopt the proposed plan following the thirty-day period. Recommendation I recommend that the City Council approve the ordinance authorizing adoption of the amended and restated Garfield Place Urban Revitalization Plan on or after March 9, 2006 if no valid petition for a second hearing is filed. Action Requested The Action Step is for the City Council to adopt the attached ordinance. Prepared by: Aggie Tauke, Community Development Specialist ORDINANCE NO. _-2006 AN ORDINANCE ESTABLISHING THE AMENDED AND RESTATED GARFIELD PLACE URBAN REVITALIZATION AREA AS AN URBAN REVITALIZATION AREA PURSUANT TO CHAPTER 404 OF THE CODE OF IOWA. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Amended and Restated Garfield Place Urban Revitalization Area as herein described shall hereafter be designated an urban revitalization area pursuant to Chapter 404 of the Code of Iowa 1999, to wit: Lot 1, Lot 2 and Lot 3 of Davis Place II, Lot 1 and Lot 2 Scharle Subdivision, and Lot 1 of Cook's Addition in the County of Dubuque, City of Dubuque, Iowa, according to the recorded plat thereof. Section 2. That the Amended and Restated Garfield Place Urban Revitalization Area 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 said Amended and Restated Garfield Place Urban Revitalization Area 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 March 9, 2006, provided that the City Clerk prior to that date has received no valid petition 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 _ day of February 2006. Attest: Roy D. Buol, Mayor Jeanne F. Schneider, City Clerk F:\Users\ATAUKE\Urban Revite\Garfield Place\Gar UR Ex! 2 Ord.doc G.rneld PI.ce Urb.n Revlt.llz.tlon Are. PI.n Amended .nd Rest.ted December 2005 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, as amended. 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 facilities 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, 51 a, 515, 521, 525/527 and 601 Garfield, legally described as: Lot 1, Lot 2 and Lot 3 of Davis Place II, Lot 1 and Lot 2 Scharle Subdivision, and Lot 1 of Cook's Addition 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. 1 Current assessed value The current assessed valuation for the property as 2005 is as follows: 511 Garfield - $31,700 in total, which is $25,700 for the land and $6000 for the building, with an additional exemption of $312,200 for the building. 513 Garfield - $20,200 for the land in total, with an additional exemption of $315,800 for the building. 515 Garfield - $93,900in total, which is $12,200 for the land and $81,700 for the building. 521 Garfield - $41,200 in total, which is $12,000 for the land and $29,200 for the building. 525/527 Garfield- $116,900 in total, which is $12,200 for the land and $104,700 for the building. 601 Garfield- $73,800 in total, which is $10,600 for the land and $63,200 for the building. Property ownership The current property owner within the area, as of December 11, 2003 is: 511, 513,515 and 521 Garfield is owned by Davis Place LLC, 511 Garfield Dubuque, IA. 525/527 Garfield is owned by Theodore N. and Betty L. Stackis, 527 Yo Garfield Avenue, Dubuque, IA 601 Garfield is owned by Loras G. Boge, with contract to Davis Place LLC, 511 Garfield Avenue, Dubuque, IA Existing zoning classification The existing zoning as December 5, 2005 is OR (Office Residential) for the entirety of the property within the boundaries of the proposed Urban Revitalization Area. The zoning was changed at 511 Garfield from R-2A (Alternate Two-Family Residential district) on May 1, 2000, to allow for the construction of the existing 19 room facility. 513 and 515 Garfield were rezoned from R-2A on January 21, 2002. The zoning was changed at 521 Garfield from R-2A on November 17,2003. The Zoning Board of Adjustment approved variances on October 27, 2005 for 601 Garfield to allow a 12 room Single Room Occupancy (SRO) with office with a deficit of 5 off-street parking spaces and 7 feet from the front property line Existing and proposed land use A 19 room single room occupancy (SRO) facility for low- and moderate-income men 2 was constructed in November 2000 at 511 Garfield, a second 19 room SRO constructed at 513 Garfield on June 2002, and a 12 room SRO constructed at 521 Garfield in 2004. Rents are limited by HUD income levels for low/moderate income residents. 515 Garfield contains a single family home which will remain. 525/527 Garfield is currently a mixed residential/commercial building which will remain. 601 Garfield is currently a vacant 11 room SRO facility will be demolished and a new 12 unit SRO constructed with limited rents as established for the other three SRO facilities. City services There 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, assessed as commercial and consisting of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes will be eligible for property tax exemption. This will assist the Single Room Occupancy (SRO) housing facilities that will provide single men with decent housing at affordable rent, a population which is not adequately served. The property tax exemption will make these projects feasible "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 increased the actual value by at least fifteen percent. "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' "Improvements" include new construction on vacant land. "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. 3 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. Each year that an application is made for tax exemption, the assessed value must have increased in that year by at least fifteen percent. 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 amended and restated Garfield Place 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 Relocation will not be necessary since the property at 601 Garfield has been vacant for the past two years. The property at 525/527 Garfield will not be affected. Anticipated grant or loan programs The project at 511 Garfield was funded through the Housing Trust Fund $200,000 forgivable loan (Local Housing Assistance Program - Iowa Department of Economic Development). Additional funding of $300,000 was provided through a conventional bank loan. The project at 513 Garfield was funded through the Housing Trust Fund $250,000 Forgivable Loan through the Iowa Department of Economic Development. Additional funding of $250,000 was received through a conventional bank loan. The project at 521 Garfield received Iowa Department of Economic Development HOME Program funds in the amount of $ 550,000. The project at 601 Garfield has requested Iowa Department of Economic Development HOME Program funds in the amount of $ 600,000. 4 Conclusion The Amended and Restated Garfield Place Urban Revitalization Area will assist the redevelopment efforts of deteriorated property which will provide for four buildings for Single Room Occupancy housing (males only) for the citizens of Dubuque. Two existing buildings contain 19 tenants each, one contains 12 tenants and the new SRO building will provide housing for 12 occupants. After the ten-year property tax exemption period elapses, the full assessed value of the properties 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 151 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 the date of the City's resolution adopting this plan. 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 151, with a statement as to which exemption applies. Applications for exemptions for succeeding years on approved projects shall not be required. 5. The local assessor shall review each application by making a physical review 5 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, except the total number of years in the exemption schedule will be allowed if a claim for exemption is filed within two years of the February 1 filing deadline. EXHIBIT A (Map) 6 N fA. D---- . Garfield Place Urban Revitalization Area Proposed Addition AMENDED AND RESTATED GARFIELD PLACE URBAN REVITALIZATION AREA PROPOSED LOCATION: 525/527 Garfield and 601 Garfield LEGAL DESCRIPTION: LOT 1 of Scharle Subdivision and LOT 1 of Cook's Addition ZONING: OR - Office Residential EXISTING LOCATION: 511,513, 515 and 521 Garfield LEGAL DESCRIPTION: LOT 1, 2 & 3 of Davis Place" and LOT 2 of Scharle Subdivision ZONING: OR - Office Residential F:IUsersIATAUKEIUrban Rev~elGarfield PlacelGarfield PlaceAmd.05.doc 7 THE CITY OF '\ ,,,I l , , < '- Planning Services Department City Hall 50 West 13th Street Dubuque, Iowa 52001-4864 (563) 589-4210 office (563) 589-4221 fax (563) 690-6678 TDD planning@cityofdubuque.org ~<k~ January 19, 2006 The Honorable Mayor and City Council City of Dubuque 50 W.13th Street Dubuque, IA 52001 RE: Expansion of the Garfield Place Urban Revitalization District Dear Mayor and City Council Members: On December 21, 2005 the Long Range Planning Advisory Commission reviewed the proposed expansion of the Garfield Place Urban Revitalization District. The Staff Report is enclosed. The Garfield Place Urban Revitalization Plan was approved by the City Council October 20, 2000. The plan provided for urban revitalization tax credits for the construction of a 19-unit single-room-occupancy building at 511 Garfield Avenue. The plan was amended in 2002 and 2004 to allow construction of additional single-room-occupancy units at 513,515 and 521 Garfield. The amended plan would add adjoining properties at 525, 527 and 601 Garfield into the Garfield Place Urban Revitalization Area and extend the duration of the plan for an additional three years. 525 and 527 Garfield contains a mixed residential/commercial building which will remain and no tax exemption will be provided. 601 Garfield has been vacant for two years. The building will be demolished and reconstructed utilizing tax credits. The Long Range Planning Advisory Commission feels the improvements made within the Garfield Place Urban Revitalization District have been a great enhancement to the neighborhood and community. The Commission believes the expansion of the Garfield Place Urban Revitalization District would be consistent with the goals of the Dubuque Comprehensive Plan and therefore recommends the expansion of the Garfield Place Urban Revitalization District. Sincerely, ~. G~~ \D\v~u3~~ l'&a~ Dr. Charles Winterwood, Chairperson Long Range Planning Advisory Commission . ; Enclusure cc: Michael Van Milligen, City Manager David Harris, Housing and Community Development Department Service People Integrity Responsibility Innovation Teamwork Thffi~E ~YN-~ MEMORANDUM December 5, 2005 FROM: Long Range Planning Advisory Commission David H~\, Housing and Community Development Department TO: SUBJECT: Review and Comment on Amended and Restated Garfield Place Urban Revitalization Area Plan Introduction The Long Range Planning Advisory Commission is requested to review the attached Amended and Restated Garfield Place Urban Revitalization Area Plan and to comment on its conformance with the general plan for the community. The amended plan will add two adjoining lots to allow property tax exemption for a proposed 12 room single-room occupancy (SRO) facility at 601 Garfield Avenue and extends the duration of the plan. Background Section 36-7(7) of the Code of Ordinances of the City of Dubuque requires review of an urban revitalization plan as to its conformity with the general plan for the development of the municipality as a whole. The ordinance assigns this duty to the Long Range Planning Commission. The Commission does not approve or deny the urban revitalization plan but reviews the plan,and submits written recommendations ,with respect to its conformance with the general plan. The City Council will receive the Amended and Restated Garfield Place Urban Revitalization Area Plan at its December 19th meeting and will set a public hearing for February 6, 2006. Discussion 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 abating 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 In order to implement the provisions of Chapter 404, the City must prepare a revitalization plan for each designated area and hold at least one public hearing after proper notice. The law mandates SpecifIC criteria and procedures that must be followed. The City Council approved the Garfield Place Urban Revitalization Area Plan on October 20, 2000. The plan provided for urban revitalization tax exemption for the construction of 19-unit single room occupancy (SRO) building at 511 Garfield Avenue. The plan was amended in 2002 to include the property at 513 Garfield to allow construction of another 19 unit SRO and amended in 2004 to include 515 and 521 Garfield to allow construction of a 12 unit SRO. The amendment adds 525/527Garfield and 601 Garfield to the Garfield Place Urban Revitalization Area and extends the duration of the plan for 3 years. The proposed project includes demolition of an existing vacant 11 Llnit SRO at 605 Garfield and construction of a fourth SRO with rooms for 12 low-moderate income men. 525/527 Garfield contains a mixed residentiaVcommercial building which will remain and no tax exemption will be provided. Davis Place LLC, owner of 601 Garfield, has applied to the Iowa Department of Economic Development for HOME Program funds for a $600,000 forgivable loan. They are requesting the urban revitalization tax exemption to ensure the feasibility of the project. /- There are currently 19 residents at 511 Garfield Avenue, 19 residents at 513 Garfield and 12 residents at 521 Garfield. The structure at 601 Garfield has been vacant for two years.. The amended and restated plan will add the adjoining lots to the district and allow for new construction, an improvement for which property tax exemption will be requested. The original Garfield Place Urban Revitalization Area Plan also provided for new construction, which has been completed and tax exemption received. The Amended and Restated Garfield Place Urban Revitalization Area Plan supports several goals of the Comprehensive Plan: Housing . To assist local service agencies in providing shelter and semi-independent living for persons in need of supporting services. Economic Development . To establish and maintain housing and transportation, communication, and utility systems which support and foster quality development. Land Use and Urban designM. To encourage redevelopment opportunities within the City in an effort to revitalize unused or underused property while ensuring the preservation for viable and affordable housing stock. . To encourage the concept of mixed use development to create diverse and self- sufficient neighborhoods. Human Services . To work with area providers to promote optimum services to meet food, clothing, shelter, transportation, and other basic material needs. Recommendation Staff encourages the Long Range Planning Advisory Commission to support the efforts of the City to provide housing alternatives for the residents of Dubuque. Staff believes the proposed plan provides for utilizing vacant parcels in the older, downtown neighborhoods for new affordable housing projects. Action Step The action step for the Long Range Planning Advisory Commission is to transmit its recommendations as to the conformity of the proposed Amended and Restated Garfield Place Urban Revitalization Area Plan to the City Council prior to the February 6, 2006 public hearing. Prepared by Aggie Tauke, Community Development Specialist Attachments Cc: Michael Van Milligen, City Manager Laura Carstens, City Planner F:\UMnMTAUKE\Urban~~.06.doc