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Annexation Herrig, Butler DUB~E ~~~ MEMORANDUM June 20, 2006 TO: Michael Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager ~ RE: Voluntary Annexation Request -- John and Sally Jo Herrig INTRODUCTION This memo transmits a resolution approving the voluntary annexation application from John and Sally Jo Herrig for annexation of 112.10 acres of their property south of Derby Grange Road, in conjunction with rezoning their property to R-3 Moderate Density Multi-Family Residential, C-3 General Commercial, and AG Agricultural and approval of a pre-annexation agreement. In addition, 0.647 acres of adjacent County right-of-way to the centerline of Derby Grange Road would be annexed. The City Council tabled the public hearings on the voluntary annexation application and the rezoning at the June 19, 2006 meeting. City Attorney Barry Lindahl has requested that a separate resolution for the Herrig annexation request be provided for the City Council's consideration. A staff report, application materials, and the pre-agreement for the Herrig annexation request also are enclosed. BACKGROUND After approval by the City Council, the State of Iowa's City Development Board must approve the annexation for it to become final because the Herrig property lies within two miles of the City of Asbury and the City of Sageville. The Herrig property meets Iowa Code requirements for annexation when combined with the Motor City/Corey annexation request that was approved at the June 19, 2006 meeting. It avoids the creation of an island of unincorporated territory when combined with the Butler annexation. State law requires that the City annex to the centerline of any adjoining County secondary road, so 0.647 acres of adjacent public right-of-way for Derby Grange Road is included in the Herrig annexation request. Herrig Voluntary Annexation Request Page 2 of 4 The Zoning Advisory Commission recommended rezoning to R-2 Two-Family Residential zoning rather than the R-3 requested by the Herrigs. The Commission also recommended that the C-3 District have a rear yard setback of 20% lot depth. At the June 19, 2006 public hearing, John Herrig agreed verbally to the R-2 rezoning, but not to the 20% setback in C-3. DISCUSSION The Herrigs have requested City financial assistance to facilitate future development, and have signed the enclosed pre-annexation agreement. The agreement provides a waiver of rezoning fees and a five-year transition on City property taxes the same as for the Butler and Motor City annexations. City staff has recommended the enclosed agreement with the Herrigs based on current City policy and financial resources, subject to review and approval by the City Council with the following additional terms and conditions: ~ The City will construct a sanitary sewer to serve the Herrig property. The fee for sanitary sewer connection of lots to City's sewer system will be as follows: For the portion of the Property designated as the A-1 District on the enclosed Exhibit A, the fee for connection to the sewer system will be $5,000.00 provided that the A-1 District is developed and used exclusively for the Herrigs' personal residence. The fee will be paid to the City upon connection of their personal residence to the City's sewer system. If the A-1 District is developed for any purpose other than for their personal residence, the Herrigs must pay the connection fee of $500.00 per acre for any property developed for any purpose other than their personal residence. The $500.00 per acre fee must be paid within twelve (12) months after final plat approval for each phase for any property developed for any purpose other than their personal residence. b. The Herrigs must pay the $500.00 per acre connection fee for any property designated C-3 General Commercial District on the enclosed Exhibit A. The Herrigs agree to pay the connection fee to the City for each lot they sell at the time of the sale of each lot and based upon the acreage of the lot. There is a balloon payment of any remaining balance by no later than five (5) years from the date of this Agreement based on the total acreage of the C-3 General Commercial District. c. The Herrigs must pay the $500.00 per acre connection fee for any property designated R-3 Moderate Density Multi-Family Residential District on the enclosed Exhibit A. The Herrigs agree to pay the connection fee to the City for each lot they sell at the time of the sale of each lot and based upon the acreage of the lot. There is a balloon payment of any remaining balance by no later than five (5) years from Herrig Voluntary Annexation Request Page 3 of 4 the date of this Agreement based on the total acreage of the R-3 Moderate Density Multi-Family Residential District. ~ The City will provide an interest-free loan in an amount not to exceed $150,000 for the construction of a sanitary sewer to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. The Herrigs must pay for by an Iowa licensed professional engineer to prepare all plans, specifications, and construction documents for the sewer necessary for City review and approval and to comply with the requirements of state law for public improvement contracts so that the City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by the City, the Herrigs have the option to contract separately for the improvements in excess of the loan funds offered, or to pay the City's cost of the improvements in excess of the loan funds prior to bid award, or to reduce the scope of the project to match the loan funds offered by the City. b. Upon completion of the construction of the sewer, all dwellings constructed in the R-3 District must be connected to City's sewer. c. The City will establish a loan repayment schedule of payments to be paid by Herrigs at the time of the sale of each R-3 lot. Each such payment will be credited toward the Herrigs' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan must be paid to the City. d. As security for the loan by the City to the Herrigs, prior to the award of a contract for the construction of the sewer, the Herrigs must execute a promissory note and mortgage or other security encumbering the property. ~ The City will provide an interest-free loan to the Herrigs in an amount not to exceed $50,000 for the construction of a water main to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. The Herrigs must pay for by an Iowa licensed professional engineer to prepare all plans, specifications, and construction documents for the water main necessary for City review and approval and to comply with the requirements of state law for public improvement contracts so that the City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by the City, the Herrigs have the option to contract separately for the improvements in excess of the loan funds offered, or to pay the City's cost of the improvements in excess of the loan funds prior to bid award, or to reduce the scope Herrig Voluntary Annexation Request Page 4 of 4 of the project to match the loan funds offered by the City. b. Upon completion of the construction of the water main, all dwellings constructed in the R-3 District must be connected to the water main. c. The City will establish a loan repayment schedule of payments to be paid by Herrigs at the time of the sale of each R-3 lot. Each such payment will be credited toward the Herrigs' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan must be paid to the City. d. As security for the loan by the City to the Herrigs, prior to the award of a contract for the construction of the sewer, the Herrigs must execute a promissory note and mortgage or other security encumbering the property. e. The City will pay the difference between the material cost of a-inch and 12-inch water main for water main that the City Manager determines in the City Manager's sole discretion is required by the City for future development. ~ The loans provided under this agreement are for services to principally residential development. Any benefit to future commercial development is incidental only. RECOMMENDATION I recommend that City Council adopt the enclosed resolution approving the voluntary annexation request of John and Sally Jo Herrig, and approve the pre-annexation agreement signed by the Herrigs, and then direct staff to file the required documentation with the State of Iowa's City Development Board. Enclosures F:/USERSIWP/LCARSTEN/COUNCIUMolor CilLHenilLBuller Annexation/Herrig Annexation memo.doc Prepared by: Laura Carstens. Cilv Planner Address: Cilv Hall 50 W. 13th Sl Telephone: 589-4210 Return 10: Jeanne Schneider. Cilv Clerk Address: Cilv Hal~ 50 W. 13'" SI Telephone: 589-4121 RESOLUTION NO. -06 RESOLUTION APPROVING APPLICATION FOR VOLUNTARY ANNEXATION OF TERRITORY OWNED JOHN W. AND SALLY JO HERRIG Whereas, John W. and Sally Jo Herrig, as property owners have submitted a written application for voluntary annexation of approximately 112.10 acres of territory lying outside the corporate limits of the City of Dubuque, Iowa, as shown in Exhibit A and legally described as: Lot 1 of Lot 2 of the SW X of the SW X of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa; Lot 1 of Butler's Hill Second Addition, T89N, R2E of the 5th P.M. in Dubuque County, Iowa; Lot 3 of Butler's Hill Second Addition, T89N, R2E of the 5ttJ P.M. in Dubuque County, Iowa; Lot 2 of the N Y. of the SW X of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa; SW X of the SW X of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa; and Whereas, the annexation territory is not subject to an existing annexation moratorium; and Whereas, the annexation territory does not include any state or railroad property; and Resolution No. - 06 Page 2 Whereas, the annexation territory includes 0.647 acres of adjacent County road right-of-way to the centerline of Derby Grange Road; and Whereas, Chapter 368 of the Code of Iowa authorizes the extension of City limits in situations of this character by adoption of a resolution and notification as required by State regulations; and Whereas, this request has been found to be consistent with the Comprehensive Plan and the Proposed Land Use Map of the Comprehensive Plan; and Whereas, the future growth and development of the City of Dubuque, Iowa makes it desirable that said territory be made part of the City of Dubuque, Iowa. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the corporate limits of Dubuque, Iowa be and they are hereby extended to include the territory as legally described above and as shown in Exhibit A. Section 2. The territory hereby annexed shall become part of Precinct Six (6) of Ward Two (2) of the City of Dubuque, Iowa. Section 3. The City shall provide for the transition for the imposition of City taxes against property owner's property, as provided by Chapter 368 of the Code of Iowa. That property owner's property shall be entitled to the following partial exemption from taxation for City taxes for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). The five-year period shall begin when the Property is placed on City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. Section 4. That the City Clerk shall file this resolution, all exhibits and the petition for voluntary annexation with the State of Iowa in accordance with State Regulations. Resolution No. - 06 Page 3 Passed, approved and adopted this Attest: Jeanne F. Schneider, City Clerk day of 2006. Roy D. Suol, Mayor F:/USERS/LCARSTENlWP/COUNCILJMolor City Herrig Butler Annexation/Herrig annexation res.doc ~ ~ -\ ~:(,~ "~I~ -111 .,J., '\ i:;' il! : ","hEk.T~d '%", z "I" I F p~ \ '1'/<< -'" ;; / "'II II --t" r -1 ~ -j ~", ,I- IJi!IIIII~~ .~~ ~'l H~Y h!l.IlllJ r ~I \ ~:'::: .>..~ .~ ::::s 1\ ~~ . " ~~ c:: ~ o ~ ~=~, Co U-" ~ \)~R~ D.. \--\ c:: I ' o ~ <c ~. 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IJr I I I C __ o J t- <r::; --j J .... <<S ~ .- >< ~ .QQ) I .- C L ~ C I (I W<(,I ~~ J J +:- I' JgIJ It !Q I L .J I I~~\ -"-'- =~ """\ ,\ ~ r\ Ul l!! ~ Gl 0 c::<C ~- ~ 0 '" :--~ 15 ~~ Glo a..... 21ti a. a> ~ "- ~q l .-1_ ~ E ::l "" U '" ~ ~ ~ " - f! L . .J L II ~ll I ~ ~\~, .- -l'~ :::> 10 <fJ " ~' - \~~ _V" >- 8, w 0 j NI ;; 8 z :::> <fJ ~, w ~ J\-1 I t -.l, r; J;i tu, iil ' .l-1::tll~ l o ~\lJ '-II!; -' ' 0 o ~f (j "III{ ~ QQ1lYu I ( ~ f'''7 'ti, ~ '" ~ \-- 'II- ~l1. 1 '1, 'i '2. "'> Q ~ o '" % ~ 't "c, ~ '" '" Nrm~n\l SUNR aOOMH aOOM3 aOOM" 3:)n" ~3S < o ~ . ~ " " jj o ~ ~ E . II ~ ~ ~ ~ o 1 ~ . ~~ 0- ..';. 8~ ~o UD ~~ 6< ~~ 0118 ~~-~ .e~ e~ ~ '0< e"-E ~o. o.:l~ ~~i: ffi~ ~..k~ Oty eX Dubuque PlannIng Services Department 0ItIuque, IA S2001~ Phone: 563-589-4210 Fax: 563-589-4221 PLANNING APPUCATlON FORM D VarillncI! ~ Use I'ennIt Q<;p-<oI &~ 0iJrriled SSbBck WaivB" !ilRezorinl/ DPIanned 0i!lbICt DPrf:II.... f Plat DMnor AnIl Plat []TflXt I\j..elodhlelll I]SlmpIe SIll! Plan OMlnor SIll! Plan o Major SIte Plan D Major AnIl Plat 0SlmpIe SubdMsIon IlJAJ n bdlIu.. []Temporary Use I'ennIt ~=~=VlaIdly 00ther: DO _ Dr arintl-ln'" Ploperty owner(s): 'filiAl IJ/ AIJIJ tIP U I I V TO fl1'W1" Phone:'iI;~I;I;I;_U9f AckIress: T ~1lif) ~""IrD'1 ' "IItD aty: fJuhuqu" r State:..J:4.. Zip: 1;9 nn9 Fax NuriIer: I;I;~-I;RI'- H~4 ~k3nVAgent 10hn W UDhhig MoblIe/CeIlUar NLmber: SU 1;4~- H.41; Phor1e: S mR8 Addn!ss: Oty: Stale: ___ ZIp: Fax Number. MablIe/CeIIUar Nlmber: Sltelocallollfadd.ess: 13316 and 13500 lkJrbll ~"- !land 1Jflhu'lUD 10"''' I;",M fxlstIng:zcnlng: Aa ~:~- g, /-1tstooc DIsbt<:t: i.a1dllilrlc __ \..egBI De:.c.\ptIon (5lcIweI1 perce! ID# or lot runber/block flU!TIber/subdiv\:;ion):,See n:t:fDI'''Dd "goh. '~D"/H.;tIj ~id~1 Total prope.ty (lot) _ (5qUIIIe feet or acres): 112 A~Jrt!A MIL all "'I' A..h"A 1./11 Describe p1..,...sa1 and reason ,- ry (alI:ach a IEtb!r eX ecpIanalIon, If needed): ~Dq At+''''ttt.d [gUlf{ ~DD t',"iMt'';Hgmci.C4a and Lettvt.. CERTlFlCATION: I/we. the U1deIsIgned, cb hen!by certify that: 1. The h/u....iIIlbl SIAl..jlb,,(J herein Is true and CXIm!d: to the best eXTrrfloa kl_.'JI!dge and upon submittal beo.A.ol!$ pUJIc recorcJ; 2. Fees are not reI\n:IabIe and p&yITlI!I1t does not guIlI'llIllI!e appI'fMII; and 3. A11~ reqlJredWfltlenandglaphk: .~"'Wl.are dtt.ad.ed. 4. AU appt.i.c.a.t,i.on 6~e4 IV!Cl ZOIWLg. 6e~ pVI. annelC.li.U.o/l /f.e.quu..t and zOrUng Propelty~):aJte. hvte.-.uI WtUved by ;the Ci...trJ 06 VubuqueUale: ~Agent Date: FOR urrAU: USE ONLY -APPLICAnoN SlmMITTAl aEa" TCT Fee: ~ by: OSlte/sketI:h plan 0 Cofv""fJ/' IlIl Del !Iopnleill: Plan Olmpn:Nement pliIns ODeslgn revlE.W Pl'QJlIct description Date: Doc:ket: OPhotD OPlat OFloor plan . []Olher: '.-."",,- .1J :J '3 ::> D :> NISNfDS fM .P :JJ,r'JS - J~--'\ _.'- ~--. ') " " L.. ? ~ J , ~ '" <( II. -- Prepared by Barry A. Lindahl 300 Main street Su~e 330 Dubuque IA 52001 563 563-4113 Return to: Jeanne Schneider, City Cieri< Address: City Hall, 50 W. 13th SI. Telephone: 589-4120 AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND JOHN W. AND SALLY JO HERRIG This Agreement, dated the _ day of , 2006, is made and entered into by, between and among the City of Dubuque, Iowa (City) and John W. and Sally Jo Herrig (Developers). WHEREAS, Developers are the owners of the real property shown on Exhibit A, incorporated herein by reference, and legally described as follows: Lot 1 of Lot 2 of the SW 14 of the SW 14 of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008451003) Lot 1 of Butler's Hill Second Addition, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008376003); Lot 3 of Butler's Hill Second Addition, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008451004); Lot 2 of the N % of the SW 14 of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008328003); and SW 14 of the SW 14 of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008351001); and WHEREAS, Developers intend to request City to annex the Property; and 1 WHEREAS, as an incentive to Developers to voluntarily apply to City to annex the Property, City is willing to enter into this Agreement, but only upon the terms and conditions set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOllOWS: 1. This Agreement is subject to a final order of the City Development Board, after the exhaustion of any and all appeals from the action of the Board or the expiration of the time within which such appeals may be brought, approving the voluntary annexation of the Property. In the event the City Development Board order approves such annexation as to less than all of the Property, this Agreement shall be null and void with respect to any of the Property not included in the Board's order. 2. Upon the filing of Developers' application for voluntary annexation, City shall promptly consider the application and if the application is approved by the City Council, transmit the application to the City Development Board as provided by law. Developers agree not to withdraw the application or any part thereof after its filing with City. 3. City intends to construct a sanitary sewer which will be available to serve the Property. The fee for sanitary sewer connection of lots in the Property to City's sewer system shall be as follows: a. For the portion of the Property designated as the A-1 District on Exhibit A incorporated herein by reference, the fee for connection to the sewer system shall be $5,000.00 provided that such A-1 District shall be developed and used exclusively for Developers' personal residence. The fee shall be paid to City upon connection of Developers' personal residence to City's sewer system. If the A-1 District is developed for any purpose other than for Developers' personal residence, Developers shall pay the connection fee of $500.00 per acre for any property developed for any purpose other than the Developers' personal residence. The $500.00 per acre fee shall be paid within twelve (12) months after final plat approval for each phase for any property developed for any purpose other than the Developers' personal residence. b. Developers shall pay the $500.00 per acre connection fee for any property designated C-3 General Commercial District on Exhibit A incorporated herein by reference. Developers agree to pay the connection fee to City for each lot sold by Developers at the time of the sale of each lot and based upon the acreage of the lot. City shall have no obligation to issue a permit for connection of any lot to the sanitary system prior to the payment of the fee for such lot. Regardless of the number of lots sold by Developers, if any, however, Developers shall pay to City by no later than five (5) years from the date of this Agreement the entire balance of the connection fee based on the total acreage of the C-3 General Commercial District. c. Developers shall pay the $500.00 per acre connection fee for any property designated R-3 Moderate Density Multi-Family Residential District on Exhibit A 2 incorporated herein by reference. Developers agree to pay the connection fee to City for each lot sold by Developers at the time of the sale of each lot, based upon the acreage of the lot sold. City shall have no obligation to issue a permit for connection of any lot to the sanitary system prior to the payment of the fee for such lot. Regardless of the number of lots sold by Developers, if any, however, Developers shall pay to City by no later than five (5) years from the date of this Agreement the entire balance of the connection fee based on the total acreage of the R-3 Moderate Density Multi-Family Residential District. 4. City shall provide an interest-free loan to Developers in an amount not to exceed $150,000 for the construction of a sanitary sewer to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. Developers shall cause to be prepared at their expense by an Iowa licensed professional engineer and submit to City all plans, specifications, and construction documents for the sewer necessary for City review and approval and to comply with the requirements of state law for public improvement contracts so that City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by City, the Developers shall have the option to contract separately for the improvements in excess of the loan funds offered, or to pay City's cost of the improvements in excess of the loan funds offered to City prior to bid award, or to reduce the scope of the project to match the loan funds offered by City. b. Upon completion of the construction of the sewer, all dwellings constructed in the R-3 District shall be connected to City's sewer. c. City shall establish a loan repayment schedule of payments to be paid by Developers to City at the time of the sale of each R-3 lot. Each such payment shall be credited toward Developers' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan shall be paid by Developers to City. d. As security for the loan by City to Developers, Developers shall, prior to the award of a contract for the construction of the sewer, execute and deliver to City, in a form acceptable to City a promissory note and mortgage encumbering the Property or such other security as may be acceptable to the City Manager in the City Manager's sole discretion. 5. City shall provide an interest-free loan to Developers in an amount not to exceed $50,000 for the construction of a water main to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. Developers shall cause to be prepared at their expense by an Iowa licensed professional engineer and submit to City all plans, specifications, and construction documents necessary for the water main for City for City review and approval and to 3 comply with the requirements of state law for public improvement contracts so that City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by City, the Developers shall have the option to contract separately for the improvements in excess of the loan funds offered, or to pay City's cost of the improvements in excess of the loan funds offered to City prior to bid award, or to reduce the scope of the project to match the loan funds offered by City. b. Upon completion of the construction of the water main, all dwellings constructed in the R-3 District shall be connected to the water main. c. City shall establish loan repayment schedule of payments to be paid by Developers to City at the time of the sale of each R-3 lot identified in Phase I of this development. Each such payment shall be credited toward Developers' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan shall be paid by Developers to City. d. As security for the loan by City to Developers, Developers shall, prior to the award of a contract for the construction of the water main, execute and deliver to City, in a form acceptable to City a promissory note and mortgage encumbering the Property or such other security as may be acceptable to the City Manager in the City Manager's sole discretion. e. City shall pay to Developers the difference between the material cost of a-inch and 12-inch water main for water main that the City Manager determines in the City Manager's sole discretion is required by City for future development, provided that City shall have no obligation to pay Developers such difference in the material cost for water main which the City Manager determines in the City Manager's sole discretion is required by Developers to support the construction and the development of the Property. 6. The loans provided under paragraphs 5 and 6 are being made for services to principally residential development. Any benefit to future commercial development is incidental only. 7. City agrees if Developers' annexation application is approved by the City Council, the resolution approving the application shall provide for the transition for the imposition of city taxes against the Property. The Property shall be entitled to the following partial exemption from taxation for city taxes for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). 4 The five-year period shall begin when the Property is placed on City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. 8. City agrees to waive the $1,000 rezoning fee. 9. Failure by Developer to pay any connection fee when due shall constitute a material breach of this Agreement for which City may suspend further performance of its obligations under this Agreement until such breach is remedied. 10. This Agreement shall apply to and bind the heirs, successors, and assigns of the parties. 11. All understandings and agreements, if any, previously made between the parties hereto are merged in this Agreement, which alone fully and completely expresses their understanding with respect to the subject of this Agreement. This Agreement may not be modified except by an amendment executed by both of the parties. 12. Upon execution of this Agreement, City shall promptly record this Agreement with the Dubuque County Recorder. CITY OF DUBUQUE, IOWA Attest: Jeanne F. Schneider, CMC City Clerk By: Roy D. Buol Mayor STATE OF IOWA DUBUQUE COUNTY ) ) ) ss: On this day of , 2006, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ROY D. BUOL and JEANNE F. SCHNEIDER, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; that said instrument was signed and sealed on behalf of the corporation by authority of its City Council, as containeo in Resolution No. passed by the City Council on the _ day of ,2006, and that ROY D. BUOL and JEANNE F. SCHNEIDER acknowledged the execution of the foregoing instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it and by them voluntarily executed. Notary Public in and for said State 5 DEVELOPERS John D. Herrig Sally Jo Herrig STATE OF IOWA DUBUQUE COUNTY ) ) ) ss. On this day of , 2006, before me, the undersigned, a Notary Public in and for said State, personally appeared JOHN D. HERRIG and SALLY JO HERRIG, to me personally known, who being by me duly sworn, did say that they are the Property Owners; and that the said JOHN D. HERRIG and SALLY JO HERRIG, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for said State 6 ~ EXHIBIT A I I !1l1 0 IIIII ~ \ I II I . . i II i . ~ \ I . I "'0 I ~ .r \,.J.; I ;' I \ 0 \1 ,..-' ---j , r- Ii , , ~)'~~e'~ ! . 'r- I :~y- 1:-\ \ \ .~/~ :-,~~_. .~- /L::::::' --, - -- Ol--_.~ .~ 0 \ . - ~ 1 \\ , . If , . jf I . . i if \ i i . I -~ %'t 1 : II -...,- ~, - .- :r-- . 1-\ 1 I i I I I I I \~. ..J II hi ITTT-v. )--1- r'"rl J'~. I -- "-~ ~ .. l 0- 1 I i "', 1 I I j , / i . , I I I I ~ ANNEXATION STAFF REPORT Council Agenda: June 19, 2006 Property Location: South of Derby Grange Road Legal Description: John W. & Sally Jo Herrig Lot 1 of Lot 2 of the SW Yo of the SW Yo, Lot 1 of Butler's Hill 2nd Addition, Lot 3 of Butler's Hill 2nd Addition, Lot 2 of the N % of the SW Yo, and SW Yo of the SW Yo of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa, including 0.647 acres of adjacent public right- of-way for Derby Grange Road Property Owner: Proposed Land Use: Residential/Commercial Proposed Zoning: R-3/C-3/AG Existing Land Use: Agricultural Existing Zoning: County A-1 Agricultural Adjacent Land Use: North - Residential East - Agricultural South - Agricultural West - Residential Adjacent Zoning: North - County A-1 East - County A-1 South - County A-1 West - County A-1 Flood Plain: Yes Total Area: 112.10 acres Water: No Existing Street Access: Yes Storm Sewer: No Sanitary Sewer: No Purpose: To rezone to R-3 Moderate Density Multi-Family Residential, C-3 General Commercial, and AG Agricultural, in conjunction with annexation. Physical Characteristics: The subject property is located south of Derby Grange Road. The property is characterized as a rolling topography that drains primarily to the northwest. It has been used for agricultural purposes since its settlement. Conformance with ComprehenSive Plan: The Comprehensive Plan includes goals and objectives supporting annexation of land for residential development that is readily served by City infrastructure and utilities. This request is consistent with the Comprehensive Plan's Land Use Element: Goals 1.2, 1.5, 2.3, 6.1, 6.2, 6.3, 7.2, 8.5, 10.2 and 10.6. The 2002 Proposed Land Use Map of the Comprehensive Plan designated this area for residential development. Impact of Request on: Utilities: City utilities can be extended to serve the subject property. Traffic Patterns/Counts: The subject property will be served by an extension of Plaza Drive to Derby Grange Road. Plaza Drive is the public street that serves the northeastern portion of Asbury Plaza Shopping Center, currently within the City of ANNEXATION STAFF REPORT. Herrig Page 2 Dubuque corporate limits. Based on 2001 IDOT counts, Derby Grange Road carries approximately 650 average daily trips. Public Services: Existing public services are adequate to serve the property as irs developed for residential purposes. Environment: The rolling topography of this site will require adequate erosion control during any development of the property and adequate storm water control after development. Adjacent Properties: The impact to adjacent properties will mostly be through increased volume of traffic on Derby Grange Road and an increase in the ambient light level. CIP Investments: The City of Dubuque will be coordinating the extension of City water and sewer into these areas to service the future development of the property. Staff Analysis and Recommendation: The property requested for annexation lies within the urbanized areas of the City of Asbury and the City of Sageville. Iowa Code allows for these types of VOluntary annexation requests be approved first by the City Council, and then by the State of Iowa's City Development Board. The property meets Iowa Code requirements for 50 feet of adjacent boundary for annexation to the City of Dubuque when combined with the Motor City/Corey annexation request. It avoids the creation of an island of unincorporated territory when combined with the Butler annexation. State law requires that the City annex to the centerline of any adjoining County secondary road, so 0.647 acres of adjacent public right-of-way for Derby Grange Road is included in the Herrig annexation request. The property is included in the City's 1996-1997 Annexation Study as a preferred area for annexation due to its proximity to the City limits, infrastructure and utilities. The staff recommendation for an agreement regarding City assistance will provided under separate cover for the public hearing. On May 3, 2006, the Zoning Advisory Commission recommended approval of R-2 Two-Family Residential rezoning rather than the R-3 requested by the Herrigs. The Commission also recommended that the proposed C-3 General Commercial District utilize the rear yard setback of 20 percent of lot depth regardless of zoning of adjacent property. Staff recommends approval of the annexation request. Prepared by: Laura Carstens Reviewed: N/A Date: 06-06-06 5UB~E ~~~ MEMORANDUM June 20, 2006 TO: Michael Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager ~ RE: Voluntary Annexation Request -- Dean and Patricia Butler INTRODUCTION This memo transmits a new resolution approving the voluntary annexation application of Dean and Patricia Butler for annexation of 8 acres of their property south of Derby Grange Road, in conjunction with rezoning their property, and approval of a pre-annexation agreement. The staff report, application materials, and the pre-annexation agreement also are enclosed. DISCUSSION After approval by the City Council, the State of Iowa's City Development Board must approve the annexation for it to become final because the Butler property lies within two miles of the City of Asbury and the City of Sageville. The Butler property meets Iowa Code requirements for annexation when combined with the Herrig annexation request that is pending before the City Council and the Motor City/Corey annexation request that was approved at the June 19, 2006 meeting. The Zoning Advisory Commission recommended rezoning to R-2 Two-Family Residential zoning rather than the R-3 Moderate Density Multi-Family Residential originally requested by the Butlers. The Butlers agreed verbally to the R-2 rezoning recommendation through their agent, John Herrig. The City Council approved R-2 rezoning at the June 19, 2006 meeting. The Butlers have signed the enclosed pre-annexation agreement, which provides for a waiver of rezoning fees and a five-year transition on City property taxes the same as in the Herrig and Motor City agreements, subject to City Council review and approval. RECOMMENDATION I recommend that City Council adopt the enclosed resolution approving the voluntary annexation request of Dean and Patricia Butler, and approve the pre-annexation agreement signed by the Butlers, and then direct staff to file the required documents with the State of Iowa's City Development Board. Enclosures F:/USERSIWP/LCARSTEN/COUNCIUMolor CitLHerrllLBuller Annexation/Buller Annexation mom.doc Prepared by: Laura Carstens City Planner Address: City Hall 50 W. 13th St Telephone: 589-4210 Return to: Jeanne Schneider. City Clerk Address: City Hall- 50 W. 13m St Telephone: 589-4121 RESOLUTION NO. - 06 RESOLUTION APPROVING APPLICATION FOR VOLUNTARY ANNEXATION OF TERRITORY OWNED BY DEAN AND PATRICIA BUTLER Whereas, Dean and Patricia Butler, as property owners have submitted a written application for voluntary annexation of approximately 8 acres of territory lying outside the corporate limits of the City of Dubuque, Iowa, as shown in Exhibit A and legally described as: Lot 2 Butler's Hill 2nd Addition, Section 8, T89N, R2E of 5th P.M., in Dubuque County, Iowa; and Whereas, the annexation territory is not subject to an existing annexation moratorium; and Whereas, the annexation territory does not include any state, county or railroad property; and Whereas, Chapter 368 of the Code of Iowa authorizes the extension of City limits in situations of this character by adoption of a resolution and notification as required by State regulations; and Whereas, this request has been found to be consistent with the Comprehensive Plan and the Proposed Land Use Map of the Comprehensive Plan; and Whereas, the future growth and development of the City of Dubuque, Iowa makes it desirable that said territory be made part of the City of Dubuque, Iowa. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Resolution No. - 06 Page 2 Section 1. That the corporate limits of Dubuque, Iowa be and they are hereby extended to include the territory as legally described above and as shown in Exhibit A. Section 2. The territory hereby annexed shall become part of Precinct Six (6) of Ward Two (2) of the City of Dubuque, Iowa. Section 3. The City shall provide for the transition for the imposition of City taxes against property owner's property, as provided by Chapter 368 of the Code of Iowa. That property owner's property shall be entitled to the following partial exemption from taxation for City taxes for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). The five-year period shall begin when the Property is placed on City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. Section 4. That the City Clerk shall file this resolution, all exhibits and the petition for voluntary annexation with the State of Iowa in accordance with State Regulations. Passed, approved and adopted this day of 2006. Roy D. Suol, Mayor Attest: Jeanne F. Schneider, City Clerk F:/USERS/LCARSTENIWP/COUNCIUMolor City Herrig Butler Annexation/Butler annexation res.doc "~~ ~. ~f i::'~lli"/~ ,--1~E~TG~~~I' / '~.IY~,~ 'F'I~~ \~) 'Ii- ~. II r'li-j[1) II Y- ~ P'r. . hilllll,li.co 'iT~>- -L I)oJ~~ 0'" it!i!hil T ~ ~ '1 ~ .............::: ~~ '~ -r- .fl~ , ' ~ ~i CI) c \ 3: o ~I ~ 8.~ o s.. I a. I' C o -, \ Ul l!! e Gl 0 c::<( 3:i;j -; 0 '0 I-'- ~O GlO a..... eLri ll..~ - ~ \ ~, ~ r\ -- J I - , , ~ - --- <(; ... 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I -c i!i - ... - _"0 ~_tII- - lII.__ -..--..----- Prepared by Barry A. Lindahl 300 Main Street Su~e 330 Dubuque IA 52001 563 583-4113 Return to: Jeanne Schneider, City Clerk Address: City Hall, 50 W. 13th SI. Telephone: 589-4120 AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DEAN AND PATRICIA BUTLER This Agreement, dated the _ day of , 2006, is made and entered into by and between the City of Dubuque, Iowa (City) and Dean and Patricia Butler (Developers). WHEREAS, Developers are the owner of the real property (the Property) shown on Exhibit A, incorporated herein by reference, and legally described as follows: Lot 2 of Butler's Hill Second Addition, Section 17, T89N, R2E of the 5th P.M. in Dubuque County, Iowa. WHEREAS, the Developers intend to request that City annex the Property; and WHEREAS, as an incentive to Developers to voluntarily apply to City to annex the Property and City is willing to enter into this Agreement, but only upon the terms and conditions set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. This Agreement is subject to a final order of the City Development Board, after the exhaustion of any and all appeals from the action of the Board or the expiration of the time within which such appeals may be brought, approving the voluntary annexation of the Property. In the event the City Development Board order approves such annexation as to less than all of the parcels in the Property, this Agreement shall be null and void with respect to any of the parcels not included in the Board's order. 1 2. Upon the filing of the Developers' application for voluntary annexation, City shall promptly consider the application and, if the application is approved by the City Council, transmit the application to the City Development Board as provided by law. The Developer agrees not to withdraw the application or any part thereof after its filing with City. 3. City agrees to waive the $650 rezoning fee for the rezoning of the Property. 4. City agrees if Developers' annexation application is approved by the City Council, the resolution approving the application shall provide for the transition for the imposition of city taxes against the Property. The Property shall be entitled to the following partial exemption from taxation for city taxes for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). The five-year period shall begin when the Property is placed on City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. 5. This Agreement shall apply to and bind the heirs, successors, and assigns of the parties. 6. All understandings and agreements, if any, previously made between the parties hereto are merged in this Agreement, which alone fully and completely expresses their understanding with respect to the subject of this Agreement. This Agreement may not be modified except by an amendment in writing executed by both of the parties. 7. Upon execution of this Agreement, City shall promptly record this Agreement with the Dubuque County Recorder. CITY OF DUBUQUE, IOWA Attest: Jeanne F. Schneider, CMC City Clerk By: Roy D. Buol Mayor STATE OF IOWA DUBUQUE COUNTY ) ) ) ss: ? On this day of , 2006, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ROY D. BUOL and JEANNE F. SCHNEIDER, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; that said instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. passed by the City Council on the _ day of , 2006, and that ROY D. BUOL and JEANNE F. SCHNEIDER acknowledged the execution of the foregoing instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it and by them voluntarily executed. Notary Public in and for said State DEVELOPERS Dean Butler Patricia Butler STATE OF IOWA DUBUQUE COUNTY ) ) ) ss. On this day of , 2006, before me, the undersigned, a Notary Public in and for said State, personally appeared DEAN BUTLER and PATRICIA BUTLER, to me personally known, who being by me duly sworn, did say that they are the Property Owners; and that the said DEAN BUTLER and PATRICIA BUTLER, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for said State "l EXHIBIT A .., ~ ;; .. >: o - .~ ~.~... -t ::; ..... ... LOT 1 Illll!!:!; 36.33 ACFES it -.. I-I I 0 0 a: lil ~ . . - i 0 ...~ 0 r.:: ID -..... w &'11 ... .. .. u '" 0 u 0 - trl if .. ~ '" 0 0: . au> _I- a:~ !!l !li!u w ll:'~ "'; o "JO'1 '"?' ~ F- LOT 1 ~..! I ND1E: -'~~ Ill!NEIIAL - NID C~i!' _ T1/" urr 1 llILL ~~ . AE8JIRED ACII:8S ..... urr II IN IIITLSI' 8 HILL "'~~g~ lIECIlND _lttllIl. ! n".~ COUNTY. ZOIIA ... IP"nUr.'I"I.&CIUI'I; m A. IIU1'LER TRIlBT, D. IIU1'LER TRIlBT. C. 8IItU!R NID PAnm:v. A. IIITLSI .. SUWEY FIEaES11!D BY: .- !JEAN IIITI..SI -8 131518 _ __ Ill. ;., . ..... Idle IDIU. 52002 p .. !II.IlVEY lCzow(l~ I ,CIN: 2_ SEE SHEET 2 OF !E MOO-SS" s. ",,"~ ~t~ _Z 1 __ corUfy _ ..... 1_ __.... _ _ C';~ -'II ... ttW re1aUd ....., ...-k _ pertar.- _ IDI'" ....... ., d1Nct. ........1 ........teian end that. 1_. dUl, 1~ ~ ~ __ _ 1_.0' err tiJ_ ~.s: .~ (~!~S- My l1c... renMIIIJ dab 1a IlK A Lr 31. 2Da!I. ~ or --.a covered by 'thu...1: 1b1. "'t Only ANNEXATION STAFF REPORT Council Agenda: June 19, 2006 Property Location: South of Derby Grange Road Property Owner: Dean and Patricia Butler Legal Description: Lot 2 Butler's Hill 2nd Addition, Section 8, T89N, R2E of 5th P.M. Proposed Land Use: Residential Proposed Zoning: R-3 Existing Land Use: Residential Existing Zoning: County A-1/ R-1 Single-Family Adjacent Land Use: North - Residential East - Agricultural South - Agricultural West - Residential Adjacent Zoning: North - County A-1 East - County A-1 South - County A-1 West - County A-1 Flood Plain: No Total Area: 8 acres Water: No Existing Street Access: Yes Storm Sewer: No Sanitary Sewer: No Purpose: To rezone to R-3 Moderate Density Multi-Family Residential for existing home consistent with proposed Herrig residential development surrounding this property, in conjunction with annexation. Physical Characteristics: The subject property is located south of Derby Grange Road. The property is characterized as a rolling topography that drains primarily to the northwest. It has been used for agricultural purposes since its settlement. Conformance with Comprehensive Plan: The Comprehensive Plan includes goals and objectives supporting annexation of land for residential development that is readily served by City infrastructure and utilities. This request is consistent with the Comprehensive Plan's Land Use Element: Goals 1.2,1.5,2.3,6.1,6.2,6.3,7.2,8.5, 10.2 and 10.6. The 2002 Proposed Land Use Map of the Comprehensive Plan designated this area for residential development. Impact of Request on: Utilities: City utilities can be extended to serve the subject property. Traffic Patterns/Counts: The subject property would be served by access to the planned residential subdivision of the surrounding Herrig property. The Herrig ANNEXATION STAFF REPORT - Butlers Page 2 property will be served by an extension of Plaza Drive to Derby Grange Road. Plaza Drive is the public street that serves the northeastern portion of Asbury Plaza Shopping Center, currently within the City of Dubuque corporate limits. Based on 2001 IDOT counts, Derby Grange Road carries approximately 650 average daily trips. Public Services: Existing public services are adequate to serve the property as it's developed for residential purposes. Environment: The rolling topography of this site will require adequate erosion control during any development of the property and adequate storm water control after development. Adjacent Properties: The impact to adjacent properties will mostly be through increased volume of traffic on Derby Grange Road and an increase in the ambient light level. CIP Investments: The City of Dubuque will be coordinating the extension of City water and sewer into these areas to service the future development of the property. Staff Analysis and Recommendation: The property requested for annexation lies within the urbanized areas of the City of Asbury and the City of Sageville. Iowa Code allows for these types of voluntary annexation requests be approved first by the City Council, and then by the State of Iowa's City Development Board. The property meets Iowa Code requirements for 50 feet of adjacent boundary for annexation to the City of Dubuque when combined with the Herrig and Motor City/Corey annexation requests. The property is included in the City's 1996-1997 Annexation Study as a preferred area for annexation due to its proximity to the City limits, infrastructure and utilities. The staff recommendation for an agreement regarding City assistance will provided under separate cover for the public hearing. On May 3, 2006, the Zoning Advisory Commission recommended approval of rezoning to R-2 Two-Family Residential rather than the R-3 requested by the Butlers. Staff recommends approval of the annexation request. Prepared by: Laura Carstens Reviewed: N/A Date: 06-06-06 June 15, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Voluntary Annexation Requests of Motor City LLC I Wendell Corey, John and Sally Jo Herrig, and Dean and Patricia Butler Planning Services Manager Laura Carstens is recommending approval of a voluntary annexation requests for Motor City LLC !Wendell Corey, John and Sally Jo Herrig, and Dean and Patricia Butler. The key elements of the voluntary annexation request for 8 acres from Dean and Patricia Butler and approval of an Annexation Agreement include the City providing for the transition for the impact of City property taxes against the property for a period of five years: a. For the five year, 75%; b. For the second year, 60%; c. For the third year, 45%; d. For the fourth year, 30%; and e. For the fifth year, 15%. The voluntary annexation request for 112.10 acres from John and Sally Jo Herrig and approval of an Annexation Agreement includes annexation of 0.647 acres of adjacent county right-of-way to the centerline of Derby Grange Road. The key points in the Herrig Annexation Agreement include: . The City will construct a sanitary sewer to serve the Herrig property and the developer will pay a $500 per acre connection fee as the lots are sold, with a five- year balloon payment. The 37 acres being used for their private residence will have a $5,000 connection charge payable when their home is connected to City sanitary sewer. . The City will provide an interest-free loan of $50,000 for the construction of a sanitary sewer to serve Phase I of the development. The loan will be repaid as lots are sold, with a balloon payment at five years. . The City will provide an interest-free loan of $50,000 for the construction of a water main to serve Phase I of the R-3 District. The loan will be repaid as lots are sold, with a five-year balloon payment. The City agrees to impose City property taxes on the property on a graduated basis over five years. The voluntary annexation request for 75 acres from Motor City LLC and approval of an Annexation Agremeent includes the following key elements: . The City will construct a lift station and force main sanitary sewer to serve the property. The connection fee will be $500 per acre paid as lots are sold, with a five- year balloon payment. . Motor City will construct a graded road north to the property owned by John and Sally Jo Herrig by July 1, 2007. . The City will construct the force main in the graded road. . Motor City will construct a water main in the graded road north to the Herrig's property. . The City agrees to impose City property taxes on the property on a graduated basis over five years. These arrangements are consistent with the City's budgeting of funds for these purposes. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager 5U~~E ~~~ MEMORANDUM June 8, 2006 TO: Michael Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager RE: Voluntary Annexation Requests of Motor City LLC / Wendell Corey, John and Sally Jo Herrig, and Dean and Patricia Butler INTRODUCTION This memo transmits a request for annexation of 195.747 acres of territory on the northwest side of Dubuque, north of Asbury Plaza Shopping Center and south of Derby Grange Road, and including 0.647 acres of County right-of-way in Derby Grange Road. This item is set for public hearing at the City Council's June 19, 2006 meeting. The request includes: ~ An application from Motor City LLC (submitted by Wendell Corey) for annexation of 75 acres of property, in conjunction with rezoning the property to PUD Planned Unit Development with a PC Planned Commercial designation. ~ An application from John and Sally Jo Herrig for annexation of 112.10 acres of their property south of Derby Grange Road, in conjunction with rezoning their property to R-3 Moderate Density Multi-Family Residential, C-3 General Commercial, and AG Agricultural. In addition, 0.647 acres of adjacent County right-of-way to the centerline of Derby Grange Road would be annexed. ~ An application from Dean and Patricia Butler for annexation of 8 acres of their property south of Derby Grange Road, in conjunction with rezoning their property to R-3 Moderate Density Multi-Family Residential. A resolution approving the voluntary annexation request and supporting documentation required for filing with the State of Iowa is enclosed. Staff reports, application materials, and agreements for the Motor City/Corey, Herrig, and Butler requests are enclosed. BACKGROUND Voluntary Annexation Request of Motor City/Corey, Herrig and Butler Page 2 of 6 The property requested for annexation lies within the urbanized areas of the City of Asbury and the City of Sageville, as shown on the enclosed city view map. Iowa Code allows for these types of voluntary annexation requests be approved first by the Dubuque City Council, and then by the State of Iowa's City Development Board. The Motor City/Corey property meets Iowa Code requirement for 50 feet of adjacent boundary for annexation to the City of Dubuque. The Herrig property meets Iowa Code requirements for 50 feet of adjacent boundary for annexation to the City of Dubuque when combined with the Motor City/Corey annexation request. It avoids the creation of an island of unincorporated territory when combined with the Butler annexation. State law requires that the City annex to the centerline of any adjoining County secondary road, so 0.647 acres of adjacent public right-of-way for Derby Grange Road is included in the Herrig annexation request. Conformance with City Plans The annexation territory is included in the City's 1996-1997 Annexation Study as a preferred area for annexation due to its proximity to the City limits, infrastructure and utilities. The Comprehensive Plan includes goals and objectives supporting annexation of land for residential and commercial development that is readily served by City infrastructure and utilities. This request is consistent with the Comprehensive Plan's Land Use Element: Goals 1.2, 1.5, 2.3, 6.1, 6.2, 6.3, 7.2, 8.5, 10.2 and 10.6. The 2002 Proposed Land Use Map of the Comprehensive Plan designated this area for commercial and residential development. County Consultations For annexation of territory within an urbanized area, State law directs that the City of Dubuque provide written notice to and hold a consultation with the County Board and Trustees of the Township that contains all or a portion of the territory to be voluntarily annexed. Correspondence with the Dubuque County Board of Supervisors and Dubuque Township Trustees is enclosed. State law also requires consultation with the County to verify legal descriptions of the annexation territory. Correspondence with the County Auditor is enclosed. Proposed Rezoning The Zoning Advisory Commission recommended approval of the PC rezoning of the Motor City/Corey property. This rezoning is an extension of the PUD that exists on Mr. Corey's property to the south of the annexation area. This PUD is already in the city limits and is under development. The Zoning Advisory Commission recommended rezoning to R-2 Two-Family Residential zoning rather than the R-3 requested by the Herrigs. The Commission also recommended that the C-3 District utilize the rear yard setback of 20% lot depth. Voluntary Annexation Request of Motor City/Corey, Herrig and Butler Page 3 of6 The Zoning Advisory Commission recommended rezoning R-2 zoning rather than the R-3 requested by the Butlers. The City Council's public hearings on these three rezoning requests will be held concurrently with the public hearing on the annexation request at the City Council's June 19, 2006 meeting. DISCUSSION The Herrigs and Wendell Corey, Motor City LLC, have requested City financial assistance to facilitate future development, and pre-annexation agreements have been prepared for and signed by both the Herrigs and Mr. Corey. The Butlers did not request City financial assistance; however, they have signed a pre-annexation agreement providang a waiver of rezoning fees and a five-year transition on City property taxes the same as the Herrigs and Mr. Corey, as shown below. The City agrees to provide for the transition for the imposition of City taxes against the property for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). The five-year period begins when the property is placed on the City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. City staff has recommended the enclosed agreements with Motor City/Corey and with the Herrigs based on current City policy and financial resources, subject to review and approval by the City Council with the following additional terms and conditions. Motor City/Corey Agreement: ~ The City will construct a lift station and force main sanitary system to serve the property. The fee for connection of lots in the property to the force main will be $500.00 per acre. Motor City agrees to pay the connection fee as each lot is sold and based upon the acreage of the lot. There is a balloon payment of any remaining balance by no later than five (5) years from the date of this Agreement based on the total acreage of the property. ~ Motor City will construct a graded road north to the property owned by John and Voluntary Annexation Request of Motor City/Corey, Herrig and Butler Page 4 of 6 Sally Jo Herrig by July 1, 2007. The City will construct the force main in the graded road. Motor City will construct a water main in the graded road north to the Herrigs' property by August 30, 2007. The City will pay Motor City the difference between the material cost of 8-inch and 12-inch water main for water main that the City Manager determines is required by City for future development. Herrig Agreement: ~ The City will construct a sanitary sewer to serve the Herrig property. The fee for sanitary sewer connection of lots to City's sewer system will be as follows: For the portion of the Property designated as the A-1 District on the enclosed Exhibit A, the fee for connection to the sewer system will be $5,000.00 provided that the A-1 District is developed and used exclusively for the Herrigs' personal residence. The fee will be paid to the City upon connection of their personal residence to the City's sewer system. If the A-1 District is developed for any purpose other than for their personal residence, the Herrigs must pay the connection fee of $500.00 per acre for any property developed for any purpose other than their personal residence. The $500.00 per acre fee must be paid within twelve (12) months after final plat approval for each phase for any property developed for any purpose other than their personal residence. b. The Herrigs must pay the $500.00 per acre connection fee for any property designated C-3 General Commercial District on the enclosed Exhibit A. The Herrigs agree to pay the connection fee to the City for each lot they sell at the time of the sale of each lot and based upon the acreage of the lot. There is a balloon payment of any remaining balance by no later than five (5) years from the date of this Agreement based on the total acreage of the C-3 General Commercial District. c. The Herrigs must pay the $500.00 per acre connection fee for any property designated R-3 Moderate Density Multi-Family Residential District on the enclosed Exhibit A. The Herrigs agree to pay the connection fee to the City for each lot they sell at the time of the sale of each lot and based upon the acreage of the lot. There is a balloon payment of any remaining balance by no later than five (5) years from the date of this Agreement based on the total acreage of the R-3 Moderate Density Multi-Family Residential District. ~ The City will provide an interest-free loan in an amount not to exceed $150,000 for the construction of a sanitary sewer to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. The Herrigs must pay for by an Iowa licensed professional engineer to prepare all plans, specifications, and construction documents for the sewer necessary for City VOluntary Annexation Request of Motor City/Corey, Herrig and Butler Page 5 of6 review and approval and to comply with the requirements of state law for public improvement contracts so that the City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by the City, the Herrigs have the option to contract separately for the improvements in excess of the loan funds offered, or to pay the City's cost of the improvements in excess of the loan funds prior to bid award, or to reduce the scope of the project to match the loan funds offered by the City. b. Upon completion of the construction of the sewer, all dwellings constructed in the R-3 District must be connected to City's sewer. c. The City will establish a loan repayment schedule of payments to be paid by Herrigs at the time of the sale of each R-3 lot. Each such payment will be credited toward the Herrigs' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan must be paid to the City. d. As security for the loan by the City to the Herrigs, prior to the award of a contract for the construction of the sewer, the Herrigs must execute a promissory note and mortgage or other security encumbering the property. ~ The City will provide an interest-free loan to the Herrigs in an amount not to exceed $50,000 for the construction of a water main to serve Phase 1 of the R-3 District. To be eligible for this loan, the work must be bid and contracted by City and is subject to City bidding requirements. a. The Herrigs must pay for by an Iowa licensed professional engineer to prepare all plans, specifications, and construction documents for the water main necessary for City review and approval and to comply with the requirements of state law for public improvement contracts so that the City can bid the project and award the contract as a City project. If the cost of the selected bid exceeds the loan funds offered by the City, the Herrigs have the option to contract separately for the improvements in excess of the loan funds offered, or to pay the City's cost of the improvements in excess of the loan funds prior to bid award, or to reduce the scope of the project to match the loan funds offered by the City. b. Upon completion of the construction of the water main, all dwellings constructed in the R-3 District must be connected to the water main. c. The City will establish a loan repayment schedule of payments to be paid by Herrigs at the time of the sale of each R-3 lot. Each such payment will be credited toward the Herrigs' loan. Not later than five (5) years from the date of this Agreement, the entire balance of the loan must be paid to the City. d. As security for the loan by the City to the Herrigs, prior to the award of a contract Voluntary Annexation Request of Motor City/Corey, Herrig and Butler Page 6 of 6 for the construction of the sewer, the Herrigs must execute a promissory note and mortgage or other security encumbering the property. e. The City will pay the difference between the material cost of a-inch and 12-inch water main for water main that the City Manager determines in the City Manager's sole discretion is required by the City for future development. ~ The loans provided under this agreement are being made for services to principally residential development. Any benefit to future commercial development is incidental only. RECOMMENDATION I recommend that City Council adopt the enclosed resolution approving the voluntary annexation request of Motor City LLC I Wendell Corey, John and Sally Jo Herrig, and Dean and Patricia Butler, and approve the pre-annexation agreements previously signed by these parties, and then direct staff to file the required documentation with the State of Iowa's City Development Board. Enclosures cc Bob Green, Water Department Manager Gus Psihoyos, City Engineer F:IUSERSIWPILCARSTENICOUNCIUMotor City-Herrig_Butler Annexationl Motor City Herrig Butler Annexation PSD mem.doc Prepared by: Laura Carstens. City Planner Address: Citv Hall 50 W. 13th St Telephone: 589-4210 Return to: Jeanne Schneider. City Clerk Address: Citv Hall- 50 W. 13m St Telephone: 589-4121 RESOLUTION NO. - 06 RESOLUTION APPROVING APPLICATION FOR VOLUNTARY ANNEXATION OF TERRITORY OWNED BY MOTOR CITY LLC, JOHN W. AND SALLY JO HERRIG, AND DEAN AND PATRICIA BUTLER Whereas, Motor City LLC, as property owner has submitted a written application for voluntary annexation of approximately 80 acres of territory lying outside the corporate limits of the City of Dubuque, Iowa, as shown in Exhibit A and legally described as: W % of the NW Yo of the NE Yo of Section 17, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (Parcel 1); E % of the NW Yo of the NE Yo of Section 17, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (Parcel 2); and NE Yo of the NE Yo of Section 17, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (Parcel 3); and Whereas, John W. and Sally Jo Herrig, as property owners have submitted a written application for voluntary annexation of approximately 112.10 acres of territory lying outside the corporate limits of the City of Dubuque, Iowa, as shown in Exhibit A and legally described as: Lot 1 of Lot 2 of the SW Yo of the SW Yo of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008451003) Lot 1 of Butler's Hill Second Addition, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008376003); Lot 3 of Butler's Hill Second Addition, T89N, R2E of the 5th P.M. in Resolution No. - 06 Page 2 Dubuque County, Iowa (parcellD # 1008451004); Lot 2 of the N Y, of the SW Y. of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008328003); and SW y. of the SW Y. of Section 8, T89N, R2E of the 5th P.M. in Dubuque County, Iowa (parcellD # 1008351001); and Whereas, Dean and Patricia Butler, as property owners have submitted a written application for voluntary annexation of approximately 8 acres of territory lying outside the corporate limits of the City of Dubuque, Iowa, as shown in Exhibit A and legally described as: Lot 2 Butler's Hill 2nd Addition, Section 8, T89N, R2E of 5th P.M., in Dubuque County, Iowa; and Whereas, the annexation territory is not subject to an existing annexation moratorium; and and Whereas, the annexation territory does not include any state or railroad property; Whereas, the annexation territory includes 0.647 acres of adjacent County road right-of-way to the centerline of Derby Grange Road; and . Whereas, Chapter 368 of the Code of Iowa authorizes the extension of City limits in situations of this character by adoption of a resolution and notification as required by State regulations; and Whereas, this request has been found to be consistent with the Comprehensive Plan and the Proposed Land Use Map of the Comprehensive Plan; and Whereas, the future growth and development of the City of Dubuque, Iowa makes it desirable that said territory be made part of the City of Dubuque, Iowa. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the corporate limits of Dubuque, Iowa be and they are hereby extended to include the territory as legally described above and as shown in Exhibit A. Section 2. The territory hereby annexed shall become part of Precinct Six (6) of Ward Two (2) of the City of Dubuque, Iowa. Resolution No. - 06 Page 3 Section 3. The City shall provide for the transition for the imposition of City taxes against property owner's property, as provided by Chapter 368 of the Code of Iowa. That property owner's property shall be entitled to the following partial exemption from taxation for City taxes for a period of five years: a. For the first year, seventy-five percent (75%). b. For the second year, sixty percent (60%). c. For the third year, forty-five percent (45%). d. For the fourth year, thirty percent (30%). e. For the fifth year, fifteen percent (15%). The five-year period shall begin when the Property is placed on City tax rolls by Dubuque County. Lots sold after that date shall receive the partial exemption percentage only for the remaining years of the five-year period. Section 4. That the City Clerk shall file this resolution, all exhibits and the petition for voluntary annexation with the State of Iowa in accordance with State Regulations. Passed, approved and adopted this day of 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk F:lUSERS/LCARSTENIWP/COUNCIUMotor City Herrig Butler Annexation/Motor City Herrig Butler annexation res.doc