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Urban Renewal Amendment_Greater Downtown DistrictTHE CITY OF Dui Masterpiece on the Mississippi Dubuque kital All- America City II 111! 2012 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution of Necessity for the Amendment of the Greater Downtown Urban Renewal District Plan DATE: April 9, 2013 Economic Development Director Dave Heiar recommends City Council approval of a Resolution of Necessity that finds that an amendment of the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District is both necessary and appropriate; and sets a public hearing on the proposed amendment for June 3, 2013. The proposed amendment of this District would expand the District to include the area bounded by Harrison, Salina, and Camp Streets, which will hereby be referred to as the Harrison Street Subarea, and comply with House File 2460, adopted by the Iowa legislature in 2012, that requires urban renewal plans be amended or modified to reflect any active urban renewal projects. I concur with the recommendation and respectfully request Mayor and City Council approval. hrilit44 krt.,709, Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager David J. Heiar, Economic Development Director THE CITY OF Dui Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Resolution of Necessity for the Amendment of the Greater Downtown Urban Renewal District Plan Dubuque All-America City I11.' 2012 DATE: April 8, 2013 INTRODUCTION This memorandum presents for City Council consideration a Resolution of Necessity that: 1) finds that an amendment of the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District is both necessary and appropriate; and 2) sets a public hearing on the proposed amendment for June 3, 2013. The proposed amendment of this District would (i) expand the District to include the area bounded by Harrison, Salina, and Camp Streets, which will hereby be referred to as the Harrison Street Subarea (see Attached Map), and (ii) comply with House File 2460, adopted by the Iowa legislature in 2012, that requires urban renewal plans be amended or modified to reflect any active urban renewal projects. BACKGROUND The Downtown Dubuque Urban Renewal District was originally established in 1967. It has been amended and restated on several occasions over the years to expand the boundaries to include the Old Main area, the Iowa Inn property, Dubuque Museum of Art, Historic Federal Building, Locust Street Parking Ramp, the Carnegie -Stout Public Library, the South Main area, the Warehouse District, the South Port area, the Cable Car area, the Bluff Street area, the South Bluff area, the Ice Harbor area, the Industrial Harbor, the Washington Neighborhood, Chaplain Schmitt Island, the East 7th Street area and the Kerper Boulevard area. On October 1, 2013, the Greater Downtown Urban Renewal District was expanded to include the North Kerper Boulevard Subarea, along with the merger of the adjacent Quebecor Economic Development District. The expansion allowed both public and private development efforts to benefit from the flexibility in the use of tax increment financing in the larger district. Before a municipality can exercise the authority conferred by Chapter 403 "Urban Renewal" of the Iowa Code, a Resolution of Necessity must be adopted finding that the area being considered for urban renewal district designation is either a slum, blighted or economic development area and that the rehabilitation, conservation, redevelopment, development, or a combination thereof, of the area is necessary in the interest of the public health, safety or welfare of the residents of the city. The Iowa Code defines a blighted area as, "an area of a municipality within which the local governing body of the municipality determines that the presence of a substantial number of slum, deteriorated, or deteriorating structures; defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; or the existence of conditions which endanger life or property by fire and other causes; or any combination of these factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, or welfare in its present condition and use." An economic development area is defined as, "an area of a municipality designated by the local governing body as appropriate for commercial and industrial enterprises, public improvements related to housing and residential development, or construction of housing and residential development for low and moderate income families, including single or multifamily housing." The Harrison Street Subarea is proposed to be designated as a blighted area. The need to expand and amend the Greater Downtown Urban Renewal District has risen from the desire to utilize tax increment financing to incentivize an expansion of a local business into vacant or underutilized facilities. The amendment will also allow the continued use of tax increment financing to promote economic development activities throughout the District for Fiscal Year 2013 -2014. Pursuant to House File 2460, the amended plan will describe the specific use of tax increment funds, reflecting the utilization of tax rebates, the creation of public infrastructure, or other planned expenditures. DISCUSSION This proposed expansion and amendment of the Greater Downtown Urban Renewal District would result in the creation of a new Harrison Street Subarea. The expanded District would allow tax increment financing to be utilized to support economic development in the Greater Downtown region. Additionally, existing bonded indebtedness in the District could be used to offer financial incentives necessary to encourage private investment, resulting in the creation or retention of quality employment opportunities in the Harrison Street Subarea, as they are offered throughout the Greater Downtown Urban Renewal District. The attached Resolution directs staff to prepare an Amended and Restated Urban Renewal Plan, setting forth the urban renewal projects that are currently expected to be undertaken in the District, and to forward the Plan to the Long Range Planning Commission for its review and comment. This is required by Chapter 403 along with a consultation process that provides the County and School Board an opportunity to comment on the proposed Plan prior to the required public hearing by the City Council. 2 Additionally, to the extent the amendment includes the use of tax increment revenues for a public building, an analysis must be provided demonstrating alternative development and funding options for such public buildings. A City Council public hearing on the Amended and Restated Urban Renewal Plan will be scheduled for June 3, 2013. The public notice will be published four to twenty days before the meeting to allow for the appropriate publication requirements. This will allow time for preparation of the Plan, review and comment period by the Long Range Planning Commission, preparation of the public building analysis and the consultation process with the taxing entities. RECOMENDATION I recommend the City Council adopt the attached Resolution of Necessity that begins the process of amending the Urban Renewal Plan for the Greater Downtown Urban Renewal District to expand the District to include the Harrison Street area as a subarea of the Greater Downtown Urban Renewal District. The amendment will provide additional tools to encourage reinvestment and redevelopment activities in the new area of the District, while continuing the use of tools for the revitalization of the entire Greater Downtown Urban Renewal District ACTION STEP The action step for the City Council is to adopt the Resolution of Necessity attached to this memorandum. F: \USERS \Econ Dev \Urban Renewal \Greater Downtown UR District \2013.1 Amendment \20130402 Memo for Resolution of Necessity.docx 3 RESOLUTION NO. 122 -13 A RESOLUTION OF NECESSITY FINDING THAT A CERTAIN AREA A DJACENT TO THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT MEETS THE DEFINITION OF AN BLIGHTED AREA UNDER THE URBAN RENEWAL LAW, AND THAT DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AND SETTING DATES OF HEARING AND CONSULTATION ON A PROPOSED AMENDEMENT TO THE URBAN RENEWAL PLAN FOR SAID DISTRICT. Whereas, the City Council of the City of Dubuque has heretofore approved the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District (the "District ") in order to provide redevelopment opportunities which will further the purposes and objectives of the foregoing Urban Renewal Plan; and Whereas, the City Council has found that certain areas adjacent to the District meet the definition of a blighted area as found in Chapter 403 "Urban Renewal" of the Iowa Code; and Whereas, Chapter 403 of the Iowa Code requires that before urban renewal authority may be exercised, a City Council must adopt a resolution of necessity finding that the area in question is a slum, blighted or economic development area, and that so designating such area is necessary in the interest of the public health, safety or welfare of the residents of the municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Harrison Street Sub -area generally described in Exhibit A to this Resolution, which is proposed to be added to the Greater Downtown Urban Renewal District, is a blighted area as defined by Chapter 403 of the Iowa Code and is appropriate for an urban renewal project. Section 2. That the development of the above - described expansion area is necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning and local community objectives. Section 3. That the City Manager is authorized and directed to prepare an Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District to accomplish the foregoing purposes and objectives, to include in such Plan any appropriate project activities and details, to forward said Plan to the City's Long Range Planning Advisory Commission for review and comment, and to determine an appropriate date for and conduct the consultation process required by law with affected taxing entities concerning the proposed amendment. Section 4. That the City Council hold a public hearing on the adoption of the proposed Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District on June 3, 2013 at 6:30 p.m. in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa 52001. The notice of said hearing shall generally identify the areas covered by the Amended and Restated Plan, the areas proposed to be added to the District, and the general scope of the urban renewal activities planned for such areas, and said notice shall be published and available to the public not less than four days nor more than twenty days before the date of said meeting. A copy of the notice of public hearing shall be sent by ordinary mail to the affected taxing entities. Section 5. That the City Clerk is further directed to send by ordinary mail a copy of said Amended and Restated Urban Renewal Plan, the notice of public hearing, and, to the extent the amendment includes the use of tax increment revenues for a public building, an analysis of alternative development and funding options for such public buildings, to the Dubuque Community School District and the County Board of Supervisors, as the affected taxing entities. PASSED, APPROVED and ADOPTED this 15th day of April, 2013. ATTEST: K n Firnstahl, City Clerk J 7 Roy . Buol, Mayor F: \USERS \Econ Dev \Urban Renewal \Greater Downtown UR District\2013.1 Amendment\20130407 Resolution of Necessity.DOCX EXHIBIT A HARRISON STREET SUBAREA — GREATER DOWNTOWN URBAN RENEWAL DISTRICT Parcel Description Lot 1 and Lot 2 of Harrison Street Place No. 2, Lot 1 and Lot 2 of Harrison Street Place No. 4, and Lot 1 of Harrison Street Place No. 5 all in the City of Dubuque, Dubuque County, Iowa and any adjoining public rights of way. I hereby certify that this land surveying document was prepared by me or under my dir ct personal supervision and that I am a duly licensed rofessi a Land Surveyor under the laws of the State of low Ronald J. T . rner, L.S. No. 09651 My renewal date is Dec. 31, 2014 Pages on sheets covered by this seal: This sheet only. Date F:\USERS \Econ Dev \Urban Renewal \Greater Downtown UR District \2013.1 Amendment \Harrison Street Subarea Legal Description - RoN Exhibit A.docx Greater Downtown Urban Renewal District Expansion w 1 I� h: \Economic Development' \Urban Renewal Greoterpowntown Horriso n.mxd mop: GDURDE.pdf created by nmb 201 3 -0A -08 1 6UB Masterpiece on the Mississippi Dubuque N9naRa4lb '1211P DAGIS