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Urban Revitalization Program 2013 AcceptanceMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Calendar Year 2013 Urban Revitalization Program Applications DATE: February 12, 2014 Dubuque band AI- America City 1 2007 • 2012 • 2013 Housing and Community Development Department Director Alvin Nash recommends City Council approval of 13 applications for residential property tax exemption. Thirteen additional applications were received but were denied due to ineligibility or incomplete projects or applications. Those who submitted incomplete applications were encouraged to reapply. In the Washington Neighborhood Urban Revitalization District only, commercial improvements are eligible tax exemption for a period of three years for improvements that increase the assessed value by 15% and do not add additional rental units or convert structures from single family to two or more residential units. Two commercial applications were approved and one was denied due to ineligibility. The applications were filed in accordance with the Urban Revitalization Ordinance, and Alvin Nash recommends the applications be forwarded to the City Assessor for final review and determination of the amount of property tax abatement. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing and Community Development Department Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Alvin Nash, Housing and Community Development Department SUBJECT: Calendar Year 2013 Urban Revitalization Program Applications DATE: February 10, 2014 Dubuque battri All- America City 1 I 2007 • 2012 • 2013 INTRODUCTION This memorandum presents for City Council consideration the attached resolution related to calendar year 2013 applications for residential property tax abatement. The resolution approves applications filed in accordance with the Urban Revitalization ordinance and directs that the approved applications be forwarded to the City Assessor. BACKGROUND In 1980, the City Council established, under the guidelines set forth in Chapter 404 of the Code of Iowa, Dubuque's first two Urban Revitalization Areas - Jackson Park Urban Revitalization Area and West 11th Street Urban Revitalization Area. In 1981, the City designated the Washington Street Urban Revitalization Area and amended the district in 2007 and 2008. In 1995, the Upper Main Urban Revitalization Area was designated and in 2002 the Langworthy, Old Main and Cathedral Urban Revitalization areas were designated. Additionally, a number of other small areas have been designated over the years, but these designations have primarily expired. The Washington Neighborhood Urban Revitalization district was revised, the boundaries expanded in March 2007 and amended in 2008. In addition to the ten year residential abatement on improvements, this district also allows three -year abatement for commercial buildings. The purpose of the Urban Revitalization legislation is to attract development to specific areas, which might otherwise continue to deteriorate, thereby stabilizing and eventually increasing the tax base within those areas. The abatements are intended to stimulate private investment by reducing the tax increases that would normally result from making improvements to residential property. Process Applications for tax exemption are accepted until February 1 of each year. The Housing and Community Development Department reviews applications to ensure properties are located in a designated area. Staff from Building Services and the Housing and Community Development Department have completed an inspection of each property to determine if the improvements have been completed, are in general conformance with the area plan, and appropriate permits have been obtained, if necessary. If the City Council finds the applications to be in compliance with the appropriate urban revitalization plan, they are forwarded to the City Assessor who inspects the properties, determines the assessable value of the new improvements and transmits this information to the County Auditor. The City Assessor must receive applications by March 1 to approve the tax abatement. DISCUSSION The residential tax exemption is for a period of 10 years and represents 100% of the assessed valuation added by the qualifying improvements. Twenty six residential applications were received and thirteen were denied due to ineligibility or incomplete projects or applications. Those who submitted incomplete applications were encouraged to reapply. The following thirteen residential applications were reviewed and approved: Cathedral Urban Revitalization Area 330 Jones Street — Maria Woodside Jackson Park Urban Revitalization Area 1783 Heeb Street — High Performance Properties Upper Main Urban Revitalization Area 1392 Main Street — JK Investments Washington Neighborhood Urban Revitalization Area 394 E 16th Street — Terri Mae Lenhardt 1633 Elm Street — Theresa Caldwell 2135 Jackson — Karen Brokus 1777 Washington Street — Alberto Luna 1787 Washington Street — Danika Carstens 1496 White Street — High Performance Properties 1591 White Street — William and Julie Reichle West 11th Street Urban Revitalization Area 472 Loras — MK Properties 1185 Center Place — Bruce Bettcher 1222- 1240 Locust — TJ IV LLC In the Washington Neighborhood Urban Revitalization district only, commercial improvements are eligible tax exemption for a period of 3 years for improvements that increase the assessed value by fifteen percent and do not add additional rental units or convert structures from single family to two or more residential units. Two commercial 2 applications were approved and one was denied due to ineligibility. The following commercial applications were reviewed and approved: Washington Neighborhood Urban Revitalization Area 1689 Elm St — loannis Karavergos 1732/1734/1736 Central — CA Rich Properties LLC RECOMMENDATION I recommend that all eligible applications included in the attached resolution be approved and forwarded to the City Assessor for final review and determination of the amount of property tax abatement. ACTION STEP The Action Step is for the City Council to receive and file eligible tax abatement applications and this staff report and adopt the attached resolution. Prepared by Erica Haugen, Community Development Specialist 3 RESOLUTION NO. 37-14 RESOLUTION APPROVING PROPERTY TAX ABATEMENT APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Whereas, Chapter 404 of the Code of Iowa, the Urban Revitalization Act, permits cities to abate property taxes for improvements made to properties in designated revitalization areas; and Whereas, the Urban Revitalization Act requires property owners to submit a written application for abatement by February 1 of the assessment year for which the abatement is first claimed, and further requires the City Council to approve all applications that meet the requirements of the adopted Urban Revitalization Plan and forward the approved applications to the City Assessor for review by March 1 of each year; and Whereas, pursuant to the requirements of said Urban Revitalization Act, the following Urban Revitalization Areas were established: Washington Neighborhood, West 11th Street, Upper Main, Cathedral, and Jackson Park; and Whereas, the City of Dubuque, as of February 1, 2014, received tax abatement applications from the following property owners in the aforementioned urban revitalization districts; Cathedral Urban Revitalization Area 330 Jones Street — Maria Woodside Jackson Park Urban Revitalization Area 1783 Heeb Street — High Performance Properties Upper Main Urban Revitalization Area 1392 Main Street — JK Investments Washington Neighborhood 394 E 16th Street 1633 Elm Street 2135 Jackson 1777 Washington Street 1787 Washington Street 1496 White Street 1591 White Street Urban Revitalization Area — Terri Mae Lenhardt — Theresa Caldwell — Karen Brokus — Alberto Luna — Danika Carstens — High Performance Properties — William and Julie Reichle West 11th Street Urban Revitalization Area 472 Loras — MK Properties 1185 Center Place — Bruce Bettcher 1222- 1240 Locust — TJ IV LLC Whereas, the City of Dubuque, as of February 1, 2014, received tax abatement application from the following property owners for improvements completed to a commercial property, resulting in eligibility for a three year tax exemption in the aforementioned urban revitalization districts, therefore; Washington Neighborhood Urban Revitalization Area 1689 Elm St — loannis Karavergos (three year eligibility) 1732/1734/1736 Central — CA Rich Properties LLC (three year eligibility) Whereas, the Housing and Community Development Department and Building Services Department have reviewed the above - described applications and inspected the properties, and have determined that the applications and the improvements conform to all requirements of the City of Dubuque's Urban Revitalization Plans. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the above - described tax abatement applications meet the requirements of the City of Dubuque's Urban Revitalization Plans. Section 2. That the above - described tax abatement applications are hereby approved by the City Council, subject to the review and approval of the City Assessor. Section 3. That the City Clerk is hereby authorized and directed to forward the above - described tax abatement applications to the City Assessor. Passed, approved and adopted this 17th day of February 2014. Attest: F: \USERS \CDBG \Urban Revite\Annual Apps\2014 \UrbanRevitRes14.doc Roy D. Buol, Mayor Masterpiece on the Mississippi Mr. Rick Engelken City Assessor Dubuque Co. Courthouse 720 Central Avenue Dubuque, IA 52001 Dubuque kitrig All- AmerlcaClh II 1 1 IF 2007 • 2012 • 2013 City Clerk's Office City Hall 50 W. 1310 Street Dubuque, IA 52001 -4864 (563) 589 -4120 office (563) 589 -0890 fax ctyclerk@cityofdubuque.org www.cityofdubuque.org February 18, 2014 Re: City of Dubuque Resolution No. 37 -14 For your records, enclosed is a certified copy of City of Dubuque Resolution No. 37 -14 adopted by the City Council at the February 17, 2014_ regular session. RESOLUTION APPROVING PROPERTY TAX ABATEMENT APPLICATIONS SUBMITTED BY PROPERTY OWNERS IN RECOGNIZED URBAN REVITALIZATION AREAS AND AUTHORIZING THE TRANSMITTAL OF THE APPROVED APPLICATIONS TO THE CITY TAX ASSESSOR Please contact me if you have any questions. Thank you. vin S. Firnstah City Clerk Enclosure: Resolution No. 37 -14 cc: Erica Haugen, Assisted Housing Specialist File