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Lake Ridge Economic Development District AmendmentMasterpiece 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: Amended and Restated Urban Renewal Plan for Lake Ridge Economic Development District DATE: May 23, 2013 Economic Development Director Dave Heiar recommends City Council approval of the Amended and Restated Urban Renewal Plan for the Lake Ridge Economic Development District. The plan has been updated to reflect expenditures planned for FY2013- FY2014 that have not been included in previous plans, as required by the provisions of House File 2460, adopted by the Iowa legislature in 2012. I concur with the recommendation and respectfully request Mayor and City Council approval. kr,„ 7)4, 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 Masterpiece on the Mississippi DATE: May 28, 2013 TO: Michael C. Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Amended and Restated Urban Renewal Plan for Lake Ridge Economic Development District Dubuque kretil All-America City 11111 2012 Introduction The purpose of this memorandum is to forward for City Council review and approval of the Amended and Restated Urban Renewal Plan for the Lake Ridge Economic Development District. The proposed amendment will comply with the provisions of House File 2460, adopted by the Iowa legislature in 2012, requiring urban renewal plans be amended or modified to reflect any active urban renewal project. Background On April 15, 2013, the City Council approved a Resolution of Necessity finding that the established urban renewal district meets the definition of an economic development area under state law, and is appropriate for urban renewal activities. Staff has prepared an Amended and Restated Urban Renewal Plan for the district as per the directive of the City Council. A consultation process was conducted with the affected taxing entities as required by Chapter 403.5 of the Iowa Code. Prior to the meeting, the taxing entities were mailed copies of the Amended and Restated Urban Renewal Plan and the Notice of Public Hearing. The required consultation to discuss, question, or object to the findings in these documents was held on May 17, 2013. There were no representatives from the taxing entities in attendance. Discussion Legislative changes to the urban renewal law in 2012 require further detail on public purpose activities. The plan has been updated to reflect an expenditure planned for FY2013- FY2014 that has not been included in previous plans. That expenditure is a previously approved property tax rebate agreement with The Rose of Dubuque, L.P. Recommendation I recommend that the attached resolution adopting the Amended and Restated Urban Renewal Plan be approved to support reinvestment efforts in the District. Action Step The Action Step for the City Council is to review and approve the resolution to adopt the Amended and Restated Urban Renewal Plan for the Lake Ridge Economic Development District. attachments F: \USERS \Econ Dev \Urban Renewal \Lake Ridge\2013.1\2013.1 Memo for Public Hearing.docx Prepared By: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 Return To: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 RESOLUTION NO. 169 -13 A RESOLUTION APPROVING THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR THE LAKE RIDGE ECONOMIC DEVELOPMENT DISTRICT. Whereas, on April 15, 2013 the City Council of the City of Dubuque, Iowa authorized the preparation of an Amended and Restated Urban Renewal Plan (the "Plan ") for the Lake Ridge Economic Development District (the "District "); and Whereas, the City of Dubuque's primary objective in amending this Plan is to provide opportunities for further development and investment in the District; and Whereas, a consultation process has been undertaken with affected taxing entities in accordance with Chapter 403 of the Code of Iowa with no written objections or recommended changes to the Plan received; and Whereas, the City Council, in accordance with Chapter 403 of the Code of Iowa, has held a public hearing on the proposed amended and restated Plan after public notice thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Amended and Restated Urban Renewal Plan for the Lake Ridge Economic Development District, on file in the City Clerk's Office and made reference to herein, be approved. Section 2. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of the Resolution in the office of the Dubuque County Recorder. Passed, approved and adopted this 3rd day of June, 2013. Roy D. Buol Mayor Attest: Kevi S. Firnstahl City Clerk F: \USERS \Econ Dev \Urban Renewal \Lake Ridge\2013.1\2013.1 Adoption Resolution.docx Prepared by: Return to: Phil Wagner, City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 (563) 589 -4393 Kevin S. Firnstahl, City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 (563) 589 -4121 AMENDED AND RESTATED URBAN RENEWAL PLAN Lake Ridge Economic Development District City of Dubuque, Iowa This Amended and Restated Urban Renewal Plan provides for the development of the Lake Ridge Economic Development District, originally established by Resolution. This plan was authorized by Resolution 247 -11 of the City Council of the City of Dubuque, Iowa on August 1, 2011 and amended by Resolution No. 169 -13 on June 3, 2013. Version 2013.1 1 TABLE OF CONTENTS A. INTRODUCTION 3 B. JUSTIFICATION FOR THE DESIGNATION 3 C. OBJECTIVES OF THE PLAN 3 D. DISTRICT BOUNDARIES 3 E. PUBLIC PURPOSE ACTIVITIES 4 F. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS 4 G. LAND ACQUISITION 5 H. FINANCING ACTIVITIES 5 I. STATE AND LOCAL REQUIREMENTS 7 J. DURATION OF APPROVED URBAN RENEWAL PLAN 7 K. SEVERABILITY 8 L. AMENDMENT OF APPROVED URBAN RENEWAL PLAN 8 M. ATTACHMENTS 8 2 URBAN RENEWAL PLAN Lake Ridge Economic Development District City of Dubuque, Iowa A. INTRODUCTION This AMENDED AND RESTATED URBAN RENEWAL PLAN (the "Plan ") has been prepared to update the objectives and public purpose activities intended to stimulate, through public actions, financing and commitments, private investment within the Lake Ridge Economic Development District ( "the District. ") In orderto achieve this objective, the City of Dubuque shall undertake the urban renewal actions specified in this Plan, pursuant to the powers granted to it under Chapter 403 of the Iowa Code, Urban Renewal Law and Chapter 15A of the Iowa Code. B. JUSTIFICATION FOR THE DESIGNATION The City Council of the City of Dubuque, Iowa has determined that a need exists for affordable assisted senior housing within the community to enhance economic development activities. The Council has declared by Resolution of Necessity No. 123 -13 on April 15, 2013 that these factors have impaired the sound growth of the City of Dubuque and of the area comprising the District. C. OBJECTIVES OF THE PLAN The primary objectives of the Plan are the development and redevelopment of the District, through: 1. The construction of affordable assisted senior living facility in the District; 2. The creation of financial incentives necessary to encourage private investment in the District; 3. The expansion of the existing property tax base of the District; and 4. Provision of public infrastructure or amenity improvements supportive of full development of the District. D. DISTRICT BOUNDARIES The District is located within the City of Dubuque, County of Dubuque, State of Iowa. The District shall consist of the real property legally described as follows: 3 Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition in the City of Dubuque, Dubuque County, Iowa The boundaries of the District are delineated on the URBAN RENEWAL DISTRICT map (Attachment A). The City of Dubuque reserves the right to modify the boundaries of the District at some future date. Any amendments to the Plan will be completed in accordance with Chapter 403 of the Iowa Code Urban Renewal Law. E. PUBLIC PURPOSE ACTIVITIES To meet the OBJECTIVES of this Plan, the City of Dubuque is prepared to initiate and support development and redevelopment of the District through, among other things, the following PUBLIC PURPOSE ACTIVITIES: 1. Improvement, installation, construction and reconstruction of streets, utilities and other improvements and rights -of -ways; 2. Use of tax increment financing, loans, grants and other appropriate financial tools in support of eligible public and private development and redevelopment efforts; a.) This includes, but is not limited to i.) A previously approved property tax rebate agreement with The Rose of Dubuque, L.P. 3. Enforcement of applicable local, state and federal laws, codes and regulations. The foregoing public purpose activities may be undertaken throughout the District. All public purpose activities shall be conditioned upon and shall meet the restrictions and limitations placed upon the District by the Plan. F. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS The LAND USE and PLANNING AND DESIGN CRITERIA set forth herein shall apply to any and all District properties the preservation, conservation, development and /or the redevelopment of which is assisted by the City through any of the PUBLIC PURPOSE ACTIVITIES listed above. 1. Land Use The intent of this Plan is to promote the construction of affordable assisted senior housing. All uses shall be regulated by the zoning district established for the property. 4 LAND USE maps (Attachments B1 and B2) identify the existing and the proposed land uses within the District. 2. Planning and Design Criteria The planning criteria to be used to guide the physical development of the District are those standards and guidelines contained within the City of Dubuque's Zoning Ordinance and other applicable local, state and federal codes and ordinances. G. LAND ACQUISITION 1. Land Acquisition The City does not intend to acquire any property within the District. However, the City reserves the right to acquire, by negotiation or eminent domain, property rights required for the construction or reconstruction of streets and public utilities, or any other public facility or improvement. H. FINANCING ACTIVITIES To meet the OBJECTIVES of this Plan and to encourage the redevelopment of the District and private investment therein, the City of Dubuque is prepared to provide financial assistance to qualified developers through the making of loans or grants under Chapter 15A of the Iowa Code and through the use of tax increment financing under Chapter 403 of the Iowa Code. 1. Chapter 15A Loan or Grant The City of Dubuque has determined that the making of loans or grants of public funds to qualified developers is necessary to aid in the planning, undertaking and completion of urban renewal projects authorized under this Plan within the meaning of Section 384.24(3)(q) of the Iowa Code. Accordingly, in furtherance of the objectives of this Plan, the City of Dubuque may determine to issue bonds or loan agreements, in reliance upon the authority of Section 384.24A, Section 384.24(3)(q), Section 403.12 (general obligation bonds) or Section 403.9 (tax increment bonds), for the purpose of making loans or grants of public funds to qualified developers. Alternatively, the City may determine to use available funds for the making of such loans or grants. In determining qualifications of recipients and whether to make any such individual loans or grants, the City of Dubuque shall consider one or more of the factors set forth in Section 15A.1 of the Iowa Code on a case -by -case basis. 5 2. Tax Increment Financing The City of Dubuque is prepared to utilize tax increment financing as a means of financing eligible costs incurred to implement the Public Purpose Activities identified in Part E of this Plan. Bonds or loan agreements may be issued by the City under the authority of Section 403.9 of the Iowa Code (tax increment bonds) or Section 384.24A, Section 384.24(3)(q) and Section 403.12 (general obligation bonds). The City acknowledges that the use of tax increment revenues delays the ability of other local taxing bodies to realize immediately the direct tax benefits of new development in the District. The City believes, however, that the use of tax increment revenues to finance new development in the District is necessary in the public interest to achieve the OBJECTIVES of this Plan. Without the use of this special financing tool, new investment may not otherwise occur or may occur within another jurisdiction. If new development does not take place in Dubuque, property values could stagnate and the City, County and School District may receive less taxes during the duration of this Plan than they would have if this Plan were not implemented. Tax increment financing will provide a long -term payback in overall increased tax base for the City, County and School District. The initial public investment required to generate new private investment will ultimately increase the taxable value of the District well beyond its existing base value. Tax increment reimbursement may be sought for, among other things, the following costs to the extent they are incurred by the City: a. Planning and administration of the Plan; b. Construction of public infrastructure improvements, amenities and facilities described in Section E of this Plan or otherwise contemplated by the Plan within the District, including pre - development planning, environmental assessment and remediation, feasibility analysis and engineering costs; c. Acquisition, installation, maintenance and replacement of public improvements throughout the District; including but not limited to street lights, benches, landscaping, and appropriate signage; d. Loans or grants to qualified developers under Chapter 15A of the Iowa Code, including debt service payments on any bonds issued to finance such loans or grants, for purposes of assisting the development of affordable assisted senior housing projects in the District or activity, or other qualifying loan programs established in support of the Plan; and e. Providing the matching share for a variety of local, state and federal 6 grants and loans. 3. Proposed Amount of Indebtedness At this time, the extent of improvements and new development within the District is only generally known. As such, the amount and duration for use of the tax increment revenues for public improvements and /or private development can only be estimated; however, the actual use and amount of tax increment revenues to be used by the City for District activities will be determined at the time specific development is proposed. It is anticipated that the maximum amount of indebtedness which will qualify for tax increment revenue reimbursement during the duration of this Plan, including public improvements and private development assistance, will not exceed $1,000,000. The City of Dubuque's general obligation debt is $90,258,482 (a list of the outstanding obligations is found as Attachment C) and the applicable constitutional debt limit is $183,621,403 for the Fiscal Year ending June 30, 2014, which is the fiscal year immediately following the update of this Plan. I. STATE AND LOCAL REQUIREMENTS All provisions necessary to conform with state and local laws have been complied with by the City of Dubuque in the implementation of this Plan and its supporting documents. J. DURATION OF APPROVED URBAN RENEWAL PLAN This Plan shall continue in effect until terminated by action of the City Council, but in no event before the City of Dubuque has received full reimbursement from all incremental taxes for its advances and principal and interest payable on all Tax Increment Financing or general obligations issued to carry out the OBJECTIVES of the Plan. However, the use of tax increment financing revenues by the City for the public purpose activities carried out under this Plan shall be limited as deemed appropriate by the City Council and consistent with all applicable provisions of law, including Chapter 403 of the State Code of Iowa. The DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS established, or as amended from time to time by the City of Dubuque Zoning Ordinance, shall remain in effect in perpetuity. 7 K. SEVERABILITY In the event one or more provisions contained in this Plan shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any respect, such invalidity, illegality, lack of authorization or unenforceability shall not affect any other provision of this Plan and this Urban Renewal Plan shall be construed and implemented as if such provision had never been contained herein. L. AMENDMENT OF APPROVED URBAN RENEWAL PLAN This Plan may be amended from time to time to respond to development opportunities. Any such amendment shall conform to the requirements of Chapter 403 of the Iowa Code, Urban Renewal Law. Any change effecting any property or contractual right can be effectuated only in accordance with applicable state and local law. M. ATTACHMENTS The following attachments are a part of this Plan and are on file at the Dubuque City Clerk's Office A Urban Renewal District Map B -1 Existing Land Use Map B -2 Proposed Land Use Map C List of General Obligation Debt F:IUSERS\Econ Dev\Urban Renewal\Lake Ridge12013.112013.1 Lake Ridge UR Plan.docx 8 CITY OF DUBUQUE, IOWA ®FFICIAI NOTICE PUBLIC NOTICE 4 is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 3rd! day ederuncil al of Junem, 2013 at 6:30 p.m. in the Hisr F Build - ing , toCity i c Co Cha- bers (Second Floor), 350 West? 6th Street, Dubuque, Iowa, at which meeting the City Council will consider a proposed amendment to the Urban Renewal Plan for the Lake Ridge Economic Development District. The Lake Ridge Eco- nomic Development District includes the re- al property in the City of Dubuque legally de- scribed as follows: Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition. The Amended and Restated Urban Renew- al Plan for the Lake Ridge Economic Devel- opment District will al- low the continued use of tax increment fi- nancing to ; promote economic development activities in the estab- lished urban renewal area. The amended plan will describe the specific use of tax in- crement funds, reflect- ing the utilization of the crea- tion of public infra -' structure, or other planned expenditures. At the meeting, the City Council will re -' ceive oral and written comments from any resident or property' owner of said City to the above action. Writ -: ten' comments regard- ing the above public hearing may be sub- mitted to the City Clerk's Office on or be fore said time of public hearing. Copies of supporting documents for the pub- lic hearings are on file in the City Clerk's Of- fice, 50 W. 13th Street, I'! and ! may be viewed during normal working hours. Any visual or hearing impa ! prsons needing ired special e assis- tance or persons with `! special accessibility needs should contact the City Clerk's Office at (563) 589- 4120 or (563) 690 -6678 at least 48 hours prior to the meeting. Published by order of the City Council given on the 15th day of April, 2013. Kevin Firnstahl, CMC City Clerk 1t 5/24 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: May 24, 2013, and for which the charge is $25.47. 'F,„[2„ Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this day of ' � , 20 Notary Public in and for Dubuque County, Iowa. ARY K. dvt 4 F' uQrriti12.G, ir1 i3 Lt r An 1111►111►►►1►1►►111►1►11►►► ►11►1111►►11►►►1►1►►1111► ►11►►11►►111►►111►11►11► ►11► Doc ID: 007704070003 Type: GEN Kind RESOLUTION Recorded: 06/06/2013 at 04:00:52 PM Fee Amt: $17.00 Page 1 of 3 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11e2013_00009431 Prepared By: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 Return To: David Heiar ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001 (563) 589 -4393 RESOLUTION NO. 169 -13 A RESOLUTION APPROVING THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR THE LAKE RIDGE ECONOMIC DEVELOPMENT DISTRICT. Whereas, on April 15, 2013 the City Council of the City of Dubuque, Iowa authorized the preparation of an Amended and Restated Urban Renewal Plan (the "Plan ") for the Lake Ridge Economic Development District (the "District "); and Whereas, the City of Dubuque's primary objective in amending this Plan is to provide opportunities for further development and investment in the District; and Whereas, a consultation process has been undertaken with affected taxing entities in accordance with Chapter 403 of the Code of Iowa with no written objections or recommended changes to the Plan received; and Whereas, the City Council, in accordance with Chapter 403 of the Code of Iowa, has held a public hearing on the proposed amended and restated Plan after public notice thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Amended and Restated Urban Renewal Plan for the Lake Ridge Economic Development District, on file in the City Clerk's Office and made reference to herein, be approved. Section 2. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of the Resolution in the office of the Dubuque County Recorder. CJIei -C. 11°° Passed, approved and adopted this 3rd day of June, 2013. Attest: Kevi S. Firnstahl City Clerk F: \USERS \Eton Dev \Urban Renewal \Lake Ridge\2013.1\2013.1 Adoption Resolution.docx Roy D. Buol Mayor CERTIFICATE of the CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. do further state that the hereto attached Resolution No. 169 -13 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 4th day of June, 2013. Kevi S. Firnstahl, CMC, C Clerk