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Urban Revite 2005 Apps Tax exemptions D~~~E ~ck~ MEMORANDUM February 14, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Calendar Year 2005 Urban Revitalization Program Application Housing and Community Development Department Director David Harris recommends City Council approval of nine applications for residential property tax exemption filed in accordance with the Urban Revitalization ordinance, and recommends the applications be forwarded to the City Assessor for final review and determination of the amount of property tax exemption. I concur with the recommendation and respectfully request Mayor and City Council approval. (Jut ~;1A1L 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 Dm~ ~~~ MEMORANDUM February 13, 2006 FROM: Michael \\r Milligen, City Manager David Harris, Housing and Community Development Department TO: SUBJECT: Calendar year 2005 Urban Revitalization Program Applications INTRODUCTION This memorandum presents for City Council consideration the following resolution related to the calendar year 2005 applications for residential property tax exemption. The resolution approves the timely residential property tax exemption applications filed in accordance with the Urban Revitalization ordinance and directs that the approved applications be forwarded to the City Assessor. ~ BACKGROUND In 1980, the City Council established, under the guidelines set forth in Chapter 404 of the Code of Iowa, Dubuque's first two Urban Revitalization Areas - Jackson Park Urban Revitalization Area and West 11th Street Urban Revitalization Area. In 1981, the City designated the Washington Street Urban Revitalization Area and in 1995, designated the Upper Main Urban Revitalization Area. The Garfield Place Urban Revitalization Area was designated as an Urban Revitalization Area in 2000, amended in June 2002 and in February 2004. In December 2002 the Langworthy, Old Main and Cathedral Urban Revitalization areas were designated. Additionally, a number of other small areas have been designated over the years, but these designations have expired. The purpose of the Urban Revitalization legislation is to attract development to specific areas, which might otherwise continue to deteriorate, thereby stabilizing and eventually increasing the tax base within those areas. The exemptions are intended to stimulate private investment by reducing the tax increases that would normally result from making improvements to residential property. Process Applications for tax exemption are accepted until February 1 of each year. The Housing and Community Development Department reviews applications to ensure properties are located in a designated area. Staff from Building Services and Housing and Community Development have completed an inspection of the property to determine if the improvements have been completed, are in general conformance with the area plan, and appropriate permits have been obtained, if necessary. Applications are presented to the City Council for consideration. If the City Council finds them to be in compliance with the appropriate urban revitalization plan, they are forwarded to the City Assessor who inspects the properties, determines the assessable value of the new improvements and transmits this information to the County Auditor. The City Assessor must receive applications by March 1 to receive the tax abatement. The tax exemption is for a period of 10 years and represents 100% of the assessed valuation added by the qualifying improvements. DISCUSSION A total of 17 timely applications were received for calendar year 2005. Four applications were denied since they were not in an urban revitalization district. Four applications were withdrawn by the owners. The following 9 applications were reviewed and approved: West 11th Street Urban Revitalization Area 1300 Walnut- Robert Johnson Mid America Holdings 550 Arlington- Robert Johnson Mid America Holdings 570 Arlington- Robert Johnson Mid America Holdings 555 West 11th Street- Robert Johnson and Bethany Golombeski 540 Wilbur- Matt & Birgit Morey 649 Arlington-Toni Anderson 1335-1337 Bluff Street - Joe Ungs -~ Upper Main Urban Revitalization Area 1157-1159 Iowa Street- Ken Un 1154, 1070, 1071, 1085, 1088 Main Street, 248 West 11th Street- Gronen Adaptive Reuse LLLP RECOMMENDATION I recommend that all eligible applications included in the attached resolution be approved and forwarded to the City Assessor for final review and determination of the amount of property tax exemption. Two properties, 555 West 11th Street and 540 Wilbur, are required to obtain the necessary permits prior to submittal to the Assessor. ACTION STEP The Action Step is for the City Council to receive and file eligible tax exemption applications and this staff report and adopt the attached resolution. Prepared by Aggie Tauke, Community Development Specialist F:\Users\ATAUKE\Urban Revlte\Annual Apps\Council URApplication 2005 memo.doc RESOLUTION NO. 48-06 RESOLUTION APPROVING RESIDENTIAL PROPERTY TAX EXEMPTION APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to exempt property taxes for improvements made to properties in designated revitalization areas; and Whereas, the Urban Revitalization Act requires property owners to submit a written application for exemption by February 1 of the assessment year for which the exemption is first claimed, and further requires the City Council to approve all applications that meet the requirements of the adopted Urban Revitalization Plan and forward the approved applications to the City Assessor for review by March 1 of each year; and Whereas, pursuant to the requirements of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Washington Street, Jackson Park, West 11 th Street, Upper Main Street, Garfield Place, Langworthy, Cathedral and Old Main; and Whereas, the City of Dubuque, as of February 1, 2006, received tax exemption applications from the following property owners in the aforementioned urban revitalization district. West 11th Street Urban Revitalization Area 1300 Walnut- Robert Johnson Mid America Holdings 550 Arlington- Robert Johnson Mid America Holdings 570 Arlington- Robert Johnson Mid America Holdings 555 West 11th Street- Robert Johnson and Bethany Golombeski 540 Wilbur- Matt & Birgit Morey 649 Arlington-Toni Anderson 1335-1337 Bluff Street - Joe Ungs Upper Main Urban Revitalization Area 1157-1159 Iowa Street- Ken Un 1154,1070,1071,1085,1088 Main Street, 248 West 11th Street- Gronen Adaptive Reuse LLLP Whereas, the Housing and Community Development Department and Building Services have reviewed the above-described applications and inspected the properties, and have determined that the applications and the improvements conform to all requirements of the City of Dubuque's Urban Revitalization Plan. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the above-described tax exemption applications meet the requirements of the City of Dubuque's Urban Revitalization Plan. Section 2. That the above-described tax exemption applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. Section 3. That the City Clerk is hereby authorized and directed to forward the above- described tax exemption applications to the City Assessor. 20th Passed, approved and adopted this 20th day of February 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk F:IUsers'ATAUKEIUrban Revite'Annual AppslUrbanRevitRes.doc