IEDA Expansion of Enterprise Zone 1
(5/5/2014) Kevin Firnstahl - Dubuque EZ Amend.docPage 1
REPORT TO THE BOARD
April 2014
DIVISION:
Community Development
SUBJECT:
Enterprise Zone Program
Applicant:
City of Dubuque
Proposed Amendment:
Dubuque EZ-1
The City of Dubuque is requesting that the boundaries of Dubuque EZ-1, located in downtown Dubuque, be
amended to include an additional 1.28 acres. The proposed expansion of the Enterprise Zone would be
used to facilitate housing development.
Eligibility Criteria:
Dubuque EZ-1
Dubuque has adequately demonstrated that the 1.28 acre addition continues to meet at least two of the
eligibility criteria for cities:
The area has per capital income of $12,648 or less based on the 2000 Census.
A)
The area has a family poverty rate of 12% or higher based on the 2000 Census.
B)
Amount of Land to be Designated as Enterprise Zones:
Amount of land in Dubuque County:394,664.4 acres
previously
Amount of land in approved Enterprise Zones:2,150.0 acres
Amount of land in Enterprise Zones including the proposed change:2,151.28 acres
Percentage of land that would be certified as Enterprise Zones:.55%
City Council Resolution:
The amendment requests were accompanied by a resolution from the Dubuque
City Council requesting the expansion of Dubuque EZ-1.
Staff Recommendation:
The IEDA staff recommends that the Board approve Dubuque’s request to expand
Dubuque EZ-1 to include the area described in the documentation submitted by the City.
Respectfully Submitted By:
Jeremy Babcock, EZ Program Manager
THE CITY OF
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Dubuque
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2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Request for Enterprise Zone Expansion of the City's Existing Enterprise
Zone - 1
DATE: March 27, 2014
The City has been approached by a developer interested in rehabilitating property at 75
W. 17th Street. The developer would create 16 multi -family units in the building that was
previously known as the Dubuque Female Seminary building, and later the Lady of
Lourdes Convalescent Home. The Developer has requested the project be included in
an Enterprise Zone in order to qualify for a 10% investment tax credit on the acquisition
of the property and the rehabilitation work, as well as a sales tax rebate. Staff is
recommending the property be included in Enterprise Zone — 1, which is contiguous to
75 W. 17th Street.
Economic Development Director Maurice Jones recommends City Council approval of a
request to the Iowa Economic Development Authority for an expansion of the existing
Enterprise Zone -1.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
THE CITY OF
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Masterpiece on the Mississippi
TO:
FROM:
SUBJECT:
DATE:
Michael Van Milligen, City Manager
Maurice Jones, Economic Development Director
Dubuque
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All -America City
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2007 • 2012 • 2013
Request for Enterprise Zone Expansion of the City's Existing Enterprise
Zone — 1
March 27, 2014
INTRODUCTION
This memorandum presents for City Council review and approval a resolution approving
a request to the Iowa Economic Development Authority (IEDA) for an expansion of the
existing Enterprise Zone -1 within the City of Dubuque.
BACKGROUND
The City currently has two enterprise zones. Enterprise Zone — 1, with approximately
1,774 acres, covers the downtown, Loras College, and riverfront areas. Enterprise
Zone — 2, with approximately 382 acres, is generally located along Central Avenue and
other parallel streets such as Jackson, Washington, and Elm, from 17th Street to just
south of the intersection with State Highway 32 / Northwest Arterial. The Enterprise
Zone designation allows for state incentives for new development projects, including
investment tax credits and refunds of sales, service, and use taxes.
The City has been approached by a developer interested in rehabilitating property at 75
W. 17th Street. The developer would create 16 multi -family units in the building that was
previously known as the Dubuque Female Seminary building, and later the Lady of
Lourdes Convalescent Home. City staff plans to recommend approximately $195,000
in incentives through the City's Downtown Housing Incentive Program and the
Downtown Rehabilitation grants at a later date. Also the project will be eligible for a 10 -
year tax exemption on the improved values through the urban revitalization program.
However even with all these benefits, there is still a substantial gap on the estimated $3
million project. Currently, the project does not reside within either Enterprise Zone.
DISCUSSION
The Developer has requested the project be included in an Enterprise Zone in order to
qualify for a 10 percent investment tax credit on the acquisition of the property and the
rehabilitation work, as well as a sales tax rebate. Staff is recommending the property be
included in Enterprise Zone — 1, which is contiguous to 75 W. 17th Street.
In order to effectuate the change, approval must be granted by the Iowa Economic
Development Authority. Representatives of the authority have requested a letter
explaining that the project is currently vacant and therefore does not change the
demographic data of Enterprise Zone — 1. Additionally, they have asked for an updated
boundary description of Enterprise Zone — 1, as well as maps that show the revised
boundaries and the location of the proposed project.
If approval is granted, the developer will submit an application to the Enterprise Zone
Commission for consideration and action on the 75 W. 17th project. Following that step,
City Council action would be required for approval of an Enterprise Zone contract.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution authorizing the request
for an expansion Enterprise Zone - 1. The benefits of zone designation provide
additional financial tools for the City and developers in order to create high quality
housing developments in the City.
ACTION STEP
The Action Step for the City Council is to adopt the attached resolution.
attachments
F:\USERS\Econ Dev\Enterprise Zone Commission\Lady of Lourdes Expansion \20140327 Expansion memo to Council.doc
RESOLUTION NO. 98-14
A RESOLUTION AUTHORIZING A REQUEST TO THE IOWA ECONOMIC DEVELOPMENT
AUTHORITY FOR AN EXPANSION OF ENTERPRISE ZONE -1 IN THE CITY OF DUBUQUE.
Whereas, the State of Iowa Economic Development Authority (IEDA) has the Enterprise Zone
program to provide benefits and incentives for redevelopment and reinvestment in areas of a
community that meet certain eligibility criteria; and
Whereas, the City of Dubuque, Iowa has identified an area which meets the eligibility
requirements; and
Whereas, the City Council of Dubuque, Iowa has determined that said expansion of
Enterprise Zone - 1 will provide financial assistance to assist in rehabilitating properties in the
expansion area; and
Whereas, the City of Dubuque, Iowa is eligible to submit an application for the Enterprise
Zone program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of a request for an Enterprise Zone expansion of the City's existing
Enterprise Zone - 1 is approved.
Section 2. That the Mayor is hereby authorized and directed to execute, on behalf of the City
Council of the City of Dubuque, Iowa, the appropriate application materials.
Section 3. That the City Manager is directed to submit the application to the Iowa Economic
Development Authority together with such documents as may be required.
Section 4. That, once the Enterprise Zone is recertified, a copy of this resolution and all
supporting documents be forwarded to the City Assessor.
Passed, approved and adopted this 7th day of April, 2014.
Attest:
fis
Kevin Firnstahl, City erk
Roy D. Buol, Mayor
F:\USERS\Econ Dev\Enterprise Zone Commission\Lady of Lourdes Expansion\EZ1 Expansion Resolution.doc
THE CITY OF
DUB
Masterpiece on the Mississippi
Jeremy Babcock
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
RE: Expansion of Enterprise Zone -1 in the City of Dubuque
Dear Jeremy,
Dubuque
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2007 • 2012 • 2013
April 8, 2014
I am writing to request the expansion of Enterprise Zone -1 in the City of Dubuque to
incorporate property at 75 W. 17th Street. The property, previously known as the Dubuque
Female Seminary building and later the Lady of Lourdes Convalescent Home, has sat
empty for numerous years. A local developer has contacted the City and expressed an
interest in redeveloping the property to create 16 multi -family units. This approximately
$3 million project will be a valuable improvement to an area currently devoid of
investment. The City has tentatively agreed to provide at least $195,000 in direct financial
incentives, as well as a 10 -year tax exemption for any increase to the taxable value on
the property. However even with these incentives, a significant financial gap exists as a
barrier to the redevelopment.
The City of Dubuque respectfully requests the property be included in Enterprise Zone -1
so the potential developer may be eligible for state benefits offered through the Enterprise
Zone. As shown in the attached map, the property is currently just outside of the
boundaries of the Zone. Additionally, since the building is vacant, inclusion into the Zone
will have no impact on the demographic data.
Attached to this letter you will find an executed City Council resolution, two maps showing
the project and the amended zone, and a boundary description of the revised Enterprise
Zone -1. We appreciate your assistance on this matter. Please do not hesitate to let us
know should you have any questions or concerns.
Sincerely,
Phil Wagner
Assistant Economic Development Director
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City of Dubuque, Iowa
Revised Enterprise Zone — 1 Boundary (April 2014)
LEGAL DESCRIPTION:
Commencing as a point of reference at the intersection of the centerline of Terminal Street with
U.S. Highway 20 (Dodge Street), said point being the point of beginning;
Street;
Thence westerly along the centerline of Dodge Street to the centerline of South Main Street;
Thence southerly along the centerline of South Main Street to the centerline of Railroad Avenue;
Thence southwesterly along the centerline of Railroad Avenue to the centerline of South Locust
Thence northerly along the centerline of South Locust Street to the centerline of Dodge Street;
Thence southwesterly along the centerline of Dodge Street 1500 feet;
Thence northwesterly on a line perpendicular to Dodge Street a distance of 300 feet;
Thence northeasterly on a line parallel to Dodge Street 1100 feet, more or less, to the east toe of
the bluff (said point being approximately 300 feet westerly of the centerline of Bluff Street);
Thence northwesterly along the toe of the bluff (said line being approximately 100 feet westerly of
the centerline of St. Marys Street) to the centerline of West Third Street;
Thence continuing northwesterly along the toe of the bluff between Bluff Street and Raymond
Place and Prospect Street to the intersection of University and West 9th Street;
Thence northeasterly continuing along the toe of the bluff to a point approximately 120 feet in
perpendicular distance from the centerline of Bluff Street;
Thence northwesterly continuing along said toe of bluff westerly of Bluff Street to the centerline of
Loras Boulevard;
Street
Thence southwesterly along the centerline of Loras Boulevard to the centerline of Wood Street;
Thence northwesterly along the centerline of Wood Street to the centerline of Rosedale Street;
Thence northeasterly along the centerline of Rosedale Street to the centerline of West Locust
Thence easterly along the centerline of West Locust Street to the centerline of Kirkwood Street;
Thence southwesterly along the centerline of Kirkwood Street to the centerline of Cox Street;
Thence southeasterly along the centerline of Cox Street to the centerline of Clark Street;
Thence northeasterly along the centerline of Clark Street to the centerline of West 17th Street;
Thence northeasterly along the centerline of West 17th Street to the intersection of West 17th
Street and the southerly extension of the west line of Lot 4 of City Lot 674;
Thence northerly along said west line and its southerly extension a distance of
approximately 152.60 feet;
Thence northwesterly along the southerly line of Lot 1-2-3 of City Lot 674 a distance of 7
feet;
Thence northerly along said southerly line a distance of 6 feet;
Thence northwesterly along said southerly line a distance of 33.07 feet;
Thence northwesterly along the southerly line of Lot 1-1-1-3 of City Lot 674 a distance of
25.63 feet;
Thence southwesterly along said southerly line a distance of 63.30 feet;
Thence northerly along the west line of said lot a distance of 40.29 feet;
Thence northwesterly along the northerly line of said lot a distance of 92.85 feet;
Thence northerly along the west line of Lot 1-2-3 of City Lot 674 a distance of 62.00 feet;
Thence northeasterly along the northerly line of said lot a distance of 40.37 feet;
Thence northerly along the west line of Lot 4 of City Lot 674 a distance of 50.20 feet;
Thence easterly along the north line of Lot 4 of City Lot 674 a distance of 32 feet;
Thence easterly along the north line of Lot 1 of 7 of City Lot 675 a distance of 52 feet;
Thence southerly along the easterly line of said lot a distance of 125.47 feet;
Thence easterly along the easterly line of said lot and its easterly extension a distance of
125.00 feet to the centerline of Heeb Street;
Thence southerly along the centerline of Heeb Street a distance of approximately 225.16
feet to the centerline of West 17th Street;
Thence northeasterly along the centerline of West 17th Street to the centerline of the most westerly
railroad tracks in Pine Street;
Thence northeasterly along the centerline of said railroad tracks running parallel to Garfield Avenue to the
centerline of Lincoln Avenue;
Thence easterly along the centerline of Lincoln Avenue to the centerline of Volunteer Drive;
Thence southerly along the centerline of Volunteer Drive to the centerline of Hawthorne Street;
Thence northwesterly along the centerline of Hawthorne Street to the centerline of Kerper Boulevard;
Thence southwesterly along the centerline of Kerper Boulevard to a point 340 feet in perpendicular
distance southwesterly of the centerline of Hawthorne Street;
Thence southeasterly along a line 340 feet in perpendicular distance southwesterly of Hawthorne Street
to the centerline of Harbor Street;
Thence southwesterly along the centerline of Harbor Street and extension thereof to the centerline of the
floodwall/levee;
Thence generally in a southern direction along the centerline of the floodwall/levee on the westerly side of
the Peosta Channel, Mississippi River and Dove Harbor to a point of intersection with the centerline of U.S.
Highway 20 (Dodge Street);
Thence westerly along the centerline of U.S. Highway 20 (Dodge Street) to the point of beginning,
containing 1775.5 acres, more or less.