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Dubuque Malting & Brewing Urban Renewal 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 Dubuque Brewing & Malting Urban Renewal District DATE: May 23, 2013 Economic Development Director Dave Heiar recommends City Council approval of the Amended and Restated Urban Renewal Plan for the Dubuque Brewing and Malting Urban Renewal 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 Dubuque Brewing & Malting Urban Renewal District Dubuque Leal 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 Dubuque Brewing & Malting Urban Renewal 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 a blighted 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 Dubuque Stamping & Manufacturing, Inc. 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 Dubuque Brewing & Malting Urban Renewal Plan. attachments F: \USERS \Econ Dev \Urban Renewal \Brewing and Malting UR District\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. 170-13 A RESOLUTION APPROVING THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR THE DUBUQUE BREWING & MALTING URBAN RENEWAL 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 Dubuque Brewing & Malting Urban Renewal District (the "District "); and Whereas, the City of Dubuque's primary objective in amending this Plan is to provide opportunities for further redevelopment and reinvestment 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 Dubuque Brewing & Malting Urban Renewal 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. Attest: • tOdy, 414 Kevi S. Firnstahl City Clerk F: \USERS \Econ Dev \Urban Renewal \Brewing and Malting UR District\2013.1\2013.1 Adoption Resolution.docx Roy D. Buol Mayor 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 Dubuque Brewing & Malting Urban Renewal District City of Dubuque, Iowa This Amended and Restated Urban Renewal Plan provides for the development of the Dubuque Brewing & Malting Urban Renewal District, originally established by Resolution 301 -08 of the City Council of the City of Dubuque, Iowa on September 2, 2008 and amended by Resolution No. 170 -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 4 E. PUBLIC PURPOSE ACTIVITIES 4 F. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS 5 G. LAND ACQUISITION 5 H. FINANCING ACTIVITIES 6 I. STATE AND LOCAL REQUIREMENTS 8 J. DURATION OF APPROVED URBAN RENEWAL PLAN 8 K. SEVERABILITY 8 L. AMENDMENT OF APPROVED URBAN RENEWAL PLAN 8 M. ATTACHMENTS 9 2 URBAN RENEWAL PLAN Dubuque Brewing & Malting Urban Renewal 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 Dubuque Brewing and Malting Urban Renewal District (the "District. ") In order to 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 the following blighting conditions, as defined by Chapter 403 of the Iowa Code, Urban Renewal Law exist within the District: • Undeveloped and underdeveloped land; • A preponderance of deteriorated, dilapidated and obsolete public and private improvements; • A faulty lot layout in relation to the size, adequacy and usefulness of the lots; • Fragmented property ownership patterns; • A lack of public utilities; and • An inadequate street layout. The Council has declared by Resolution of Necessity No. 124 -13 on April 15, 2013 that these factors have substantially impaired and arrested 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 conservation, restoration, renovation or rehabilitation of the historic and architectural character of the District through the renovation and rehabilitation of historic buildings, the use of appropriate construction techniques, the coordinated administration of appropriate code enforcement efforts and the maximization of all available financial and technical resources; 3 2. The development of additional and improved parking opportunities in the District supportive of the businesses and attractions located within its boundaries and which accommodate the needs of its residents, employees and visitors; 3. The creation of financial incentives necessary to encourage private investment and reinvestment in the District; 4. The creation and retention of quality employment opportunities in the District; 5. The expansion of the existing property tax base of the District; and 6. Provision of public infrastructure 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: Lot 1 -1 -4, Lot 2 -1 -4, Lot 2 -4, Balance of Lot 4, Lot 5, Lot 2 -6, Lot 2 -7 and Lot 1 -1 -3 -8 all of Mineral Lot 322 in the City of Dubuque, Dubuque County, Iowa; and Lots A, B, C, D, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 all in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1 -1, Lot 2 -1, Lot 2, Lot 3 and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa; and also including public right -of -way abutting thereto. 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; 4 2. Use of tax increment financing, loans, grants and other appropriate financial tools in support of eligible public and private development and redevelopment efforts; and a.) This includes, but is not limited to i.) A previously approved property tax rebate agreement with Dubuque Stamping & Manufacturing, Inc. 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 preservation, conservation, development and redevelopment of this neighborhood into residential, office, commercial and industrial uses. All uses shall be regulated by the zoning district established for the property. 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 Unified Development Code 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 5 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 development of the District and private investment therein, the City of Dubuque is prepared to provide financial assistance to qualified industries and businesses 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 industries and businesses 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 entities. 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. 2. Tax Increment Financing The City of Dubuque is prepared to utilize tax increment financing, authorized under Iowa Code Section 403.19 and current City ordinance, 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. 6 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 any of the eligible costs incurred by the City in connection with any of the Public Purpose Activities described in Section 3 of this Plan, including but not limited to the following: 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 businesses under Chapter 15A of the Iowa Code, including debt service payments on any bonds issued to finance such loans or grants, for purposes of expanding the business 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 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 $20,000,000. 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 7 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. 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 8 C List of Current General Obligation Debt F: \USERS \Econ Dev \Urban Renewal \Brewing and Malting UR District\2013.1\2013.1 Brewing & Malting UR Plan.docx 9 CITY OF DUBUQIJE0 OFFICIAI- NOTICE PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 3rd day of June, 2013 at 6:30 p.m. in the Historic Federal Build- ing, City Council Cham- 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 Dubuque Malting and Brewing Urban Renewal Dis- trict: The Dubuque Brewing and Malting Urban Re- newal District includes the real property in the City of Dubuque, legal- ly described as follows: Lot 1 -1 -4, Lot 2 -1 -4, Lot 2 -4, Balance of Lot 4, Lot 5, Lot 2 -6, Lot 2 -7, and Lot 1 -1 -3 -8 all of Mineral Lot 322 in the City of Dubuque, Dubu- que County, Iowa; and Lots A, B, C. D, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 all in Liebe's Subdivision No. 2 in the City of Dubu- que, Dubuque County, I and Lot 1-1. lot ow a; 2 -1, Lot 2 Lot 3 and Lot 4 all in Liebe's Subdivi- sion No. 3 in the City of Dubuque, Dubuque County, Iowa; and also including public right - of -way abutting there- to. The Amended and Restated Urban Renew- al '! Plan for the Dubuque Brewing and ! Malting Urban Renewal District will allow the contin- ued use of tax incre- ment financing to pro- mote economic devel- opment activities in the established urban renewal area. The amended plait will de- scribe the specific use of tax increment funds, reflecting the utiliza- tion of tax rebates, the creation of public infra- structure, or other planned expenditures. At the meeting, the City Council will re -'r ceive oral and written from any resident or 'property owner of said City to above action. Writ -` ten: comments regard - ing the above public 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, and may be viewed during normal working hours. Any visual or hearing impaired persons needing special assis- tance or persons with special accessibility needs should contact the City Clerk's Office at;(563) 589 -4120 or TTY (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 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 $31.13. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, , 20 / . this day of ‘zei Notary Public in and for Dubuque County, Iowa. n 'APIs(K.` ESf� Number Cn(;,;IESSiofS 1111111111111$111111M11 11 Doc ID: 007704080003 Type: GEN Kind: RESOLUTION Recorded: 06/06/2013 at 04:01:35 PM Fee Amt: $17.00 Page 1 of 3 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2013- 00009432 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. 170 =13 A RESOLUTION APPROVING THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR THE DUBUQUE BREWING & MALTING URBAN RENEWAL 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 Dubuque Brewing & Malting Urban Renewal District (the "District "); and Whereas, the City of Dubuque's primary objective in amending this Plan is to provide opportunities for further redevelopment and reinvestment 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 Dubuque Brewing & Malting Urban Renewal 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. c_k_c o n 00 Passed, approved and adopted this 3rd day of June, 2013. Attest: Kevi ' S. Firnstahl City Clerk F:\USERS \Econ De■\Urban Renewal \Brewing and Malting UR District\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. I do further state that the hereto attached Resolution No. 170 -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. Kevin •. Firnstahl, C C, C. lerk