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Legislative Corr SB 1208_Great Places_TIFI ' THE CITY OF DuB Cable Television Division 6~ City Hall Annex -1300 Main Street Dubuque, Iowa 52001-4732 U (563) 589-4181 office (563) 5891299 fax (563) 589-4193 TDD catv~cityofdubuque.org February 19, 2007 Dear Subcommittee of the Senate Commerce Committee: Thank you for the opportunity to relay a few of the concerns the City of Dubuque has with Senate Study Bill {SSB)1208 regarding statewide cable television franchising. The City of Dubuque does not support any bill or provision which attempts to limit a local franchising authority's ability to meet the needs of its community. In the case of cable television franchises, this has long been the domain of local municipalities. The legitimate needs and interests of residents of one community often differs from those in another community Local municipalities are best able to determine the needs and interests of their community. Removing that authority is not in the best interest of the citizens of Dubuque or any other Iowa community. There are three areas of SSB 1208 to which I would like to direct comments today and compare against the 15-year cable franchise agreement that went into effect in Dubuque on June 5, 2005: 1 } Gross Revenues. SSB 1208 contains a far narrower definition of gross revenues than our cable franchise agreement. Under the Dubuque franchise agreement: Gross Revenues include, by way of illustration and not limitation, fees for any cable service; installation, disconnection, reconnection, and change-in-service fees; leased channel fees; late fees and administrative fees; fees, payments, Launch fees, marketing support, or other payments or consideration received from programmers for carriage of programming on the System; revenues from rentals or sales of Converters or other equipment; studio rental, producfion equipment, and personnel fees; advertising revenues (including any commissions received by a third party); barter; revenues from program guides; and revenues from home shopping and bank-at-home channels. Under SSB 1208, the City would receive less revenue than it has already negotiated. 2) PEG Support. In addition to a 5% franchise fee, Dubuque's cable franchise agreement calls for an additional 1.75% of gross revenue for support for public, educational, and governmental (PEG) facilities and equipment. In less than two years, this support has provided a tremendous shot in the arm for our thriving access community. PEG is the Service People Integrity Responsibility Innovation Teamwork true local voice in Dubuque television and its support is vital to our residents. 3) I-Net Support. One of the provisions of the new Dubuque cable franchise agreement that we are most excited about is our institutional network, or I- Net. For the first time in the city's history, a fiber-0ptic network now connects more than 75 public, educational, and non-profit sites allowing rapid transmission of video, voice, and data. Connected are City buildings, public schools, parochial schools, universities, the medical community, and many of our cultural institutions. The possibilities are endless now that we have these connections. Construction of our I-Net was completed at the end of December. We lit the first segments of this community resource just last Friday, February 16. It will provide tremendous savings to our public schools, network redundancy for our medical community, critical police and fire communications, just to name a few uses. SSB 1208 does not appear to have any provisions for I-Net support, putting in jeopardy something we worked very hard to create. While SSB 1208 is problematic for people in Iowa on the above issues, there is much more in this proposed legislation that is cause for concern. Clearly, this is not a bill for the people. I urge you to weigh carefully the detrimental consequences of this legislation and craft instead, if a new bill must be crafted at all, one that does not roll back al! the gains local municipalities have struggled so hard to obtain on behalf of the people we serve. I thank you for your consideration. Sincerely, Craig Nowac Cable TV Co rdinator City of Dubuque cc: Michael C. Van Milligen, City Manager Teri Goodmann, Assistant City Manager Bany Lindahl, City Attorney Randy Gehl, Public Information Officer City Manager's Office City Hall 50 West 13'h Street Dubuque, IA 52001-4864 (563) 589-4110 phone (563) 589-4149 fax (563) 690-6678 TDD ctymgr@cityofdubuque.org «CompleteOFFICIALName Address» Dear «Tile» «Last»: THE CITY OF ,,.. ~1 L~~~s ~ ~~ February 23, 2007 The City of Dubuque is very concerned about recently introduced legislation that threatens the ability of local municipalities to negotiate a cable television franchise agreement that best meets the needs of their communities. The purpose of this letter is to expand upon the letter we e-mailed you recently and reiterate a few of the City of Dubuque's concerns with Senate Study Bill (SSB) 1208, also known as the Qwest / ITA proposal for statewide cable television franchising. This bill eliminates a municipality's ability to negotiate for provisions important to its citizenry in favor of a "one size fits all" philosophy that is contradictory to the purpose of franchising. A franchise provision vital to one community, such as an institutional network - or I-Net -may be of little concern to another that places a much higher value on its public, educational, and governmental (PEG) access community. Since the current form of SSB 1208 threatens to render existing franchises null and void, and since our community is not even two years into a 15-year cable franchise agreement, this is a very timely concern for us. Our major concerns are as follows: • SSB 1208 eliminates a municipality's ability to negotiate a franchise in the best interests of its constituents. Competitive video providers are not even required to first negotiate with the city in which they want to operate. The bill also requires that a franchise be issued within 15 days after application. Why would a provider bother to negotiate when they can simply "wait it out" and automatically receive a franchise? • SSB 1208 creates an uneven playing field and allows existing franchisees to renegotiate their agreements if they believe their existing franchise is unfair. If no agreement is reached, a state franchise is automatically issued. The City of Dubuque invested significant time and resources to negotiate our current agreement with Mediacom with the understanding that it would be in effect for 15 years. • SSB 1208 contains no build-out provisions. Low and moderate income neighborhoods and small businesses will not be served. Our current franchise requires services be provided to every residence within the city limits, with reasonable provisions for new annexations. SSB 1208 does not address any kind of support for I-Nets. In Dubuque, the construction of a community-wide I-Net connecting more than 75 government, educational, healthcare, and non-profit sites was a major focus of our franchise negotiations. Construction of our I-Net was completed late last year and we began lighting the fiber in this network less than a week ago. Dubuque's I-Net promises significant savings, network redundancy, emergency communications, and traffic signalization for our public and parochial schools, our medical community, City and County buildings, and many of our cultural institutions. Our -Net community is jumping at the chance to fully realize the potential of this new resource. SSB 1208 threatens the future of this venture by failing to support it. SSB 1208 drastically narrows the definition of gross revenues which are the source of the franchise fees we collect from video providers. Last year, the City of Dubuque received more than $570,000 in cable television franchise fees as compensation for commercial use of the public rights-of-way and administration of the franchise. Reduction of this revenue source could require the City to curtail services, raise taxes, or both. The City of Dubuque welcomes competition and competitive prices in our telecommunications market. The cable-related needs of each Iowa community are not the same. No "one size fits all" solution will work for everyone. I urge you to oppose SSB 1208 in its current form and any legislation that prevents a community from acquiring a cable television franchise that best meets the needs of its citizens. The City of Dubuque and other communities are working with the Iowa League of Cities (ILC) to offer suggestions on how this bill could be modified to best service the citizens of Iowa. I have attached the ILC's evaluation of SSB 1208. I hope you will review it and oppose SSB 1208 in its current form. Thank you for your consideration. MCVM:rg Attachment Sincerely, /~~ Michael C. Van Milligen City Manager City of Dubuque Service People Integrity Responsibility Innovation Teamwork LEAGUE OF CITIES EVAL,UAT E CABLE TELEVISION FRANCHISING tm IOWA roviders opera g QWEST / ITA FROPOSAL FOR STATEWI of cities to franchise cable teleovi os 1 and is offering its attempt to legislatively reduce the authority west 1 ITA pr P e of Cities remains in opposition to any roblems associated with the various elements of the Q The Iowa Leagu a is herein expressing its view of the p within cities. The Leagu west /ITA ro osai Lea ue osition aired to position on each of those elements. t Competitive provider should be req Problems resented b Comp rovider does not have to attemp s comp west /ITA ro osal etitive p apply to city for franchise. If franchise n etitive obtain franchise and can immediately negotiated with city wtin 120 day , pro osal elements Competitive provider may negotiation with city 1 fot franchise from Procedure for or from Secretary of State, but not obtain certificate of franchise authoritya a not provider could then app y Ci would be issuance of new from city otiate with city. Certificate of State. Certificate of authority Iowa Utilities Board (IUB)• h' terms required to first neg to be issued Secy franchise to franchise) address local needs and will be less allowed to have input to NB we er ~IUB competitive of franchise authority ~ lication. of franchise issued by IUB, within 15 days after app burdensome than incumbent's existing would be required to issue franchise within 60 provider franchise' da s All incumbent providers should be notified (by city or IUB) that a new franchise The Secretary of State's office does not have y roved for a competitive provider staff with the necessary regulatory experience osed by has been app of that franchise. A and expertise to deal with the issues p and should receive a copy etitive new franchise approved for a comp the issuance of cable franchise to a anon of o into effect for 60 days competitive provider, and the integ provider would not g such new service with the cable services after such noticerov'der~s franchise hould rovided b the incumbente the i~~tunbent An thcumbent p Tres. However, if an This process will encourag franchise remain in effect until it exp incumbent provider believes that a franc etitive provider to seek to have its existing rovision a ci or by the IUB to a comp Incumbent Incumbent provider's franchise remains in declared null and void. As such, this p hts of issued by ty neutrah or > effect until terminates, unless incumbent contractual rig rovider is not competitively provider s remedy re uests city to renegotiate; if incumbent and interferes with existing titively if franchise issued q cities. This process is baclcward• It should believes that it has been compe etitive city can't renegotiate the franchise w/in 60 not result in conforming an ~ncmnbent disadvantaged by the terms of such franchise, it to comp days, the incumbent can then file a s after receiving notice of provider is not m which terms modification request, identify S rovider's franchise to a new franchise issuance of a competitive franchise within competitively approved for a competitive provider. Rather, it should have 30 day revision of neutral. are materially different from a certifetang f P which to appeal to the Ii.JB, seeking franchise authority issued to a comp franchise should result in the franchise issued to the new etitive provider's how existing competitive provider being conformed to the the terms of the comp provider, and indicating has 120 franchise. rovider would have incumbent's existing franchise. The inc~bent p terms have to be modified. The city burden of showing that the terms of days to grant the requested modification. If city doesn't consent to modifications Upon expiration of an incumbent provider's competitive provider's franchise havet incumbent provider ,the obtain franchise competitively neutral, or that they requested by of State, but is not ed the incuunbent provider. The existing from city or from Secretary In all disadvantag to the franchise becomesn all ly to 5ecy of franchise, incumbent ma etitive provider would be a party rovider ca PP required to first negotiate with city comp the incumbent p rovider seeking a franchise should proceedings before the UIB. State for a certificatc of franchise authority. cases, a p first be required to negotiate with the city. Franchise terms Secy of State would issue a "certaf sufficient detalrin Qwest s proposalll In tn providers the IUB should be requrredtoo and provisions franchise franchise authority", rather than provisions and reement with terms a m ou all cases, there should be a franchise document h f b de eemen w th deta led termsoand provisions r a , g requirements as is the case with city approved ot that defines the rights and obligations o n itt g consistent with statutory requirements. An franchises. Certificate of franchise authority e the city and the franchisee. Without a wr the city and the fran ument d i b l s or f i on would presumably be issued subject to all , oc eneral statuto ve to attempt to apply very g ry h ty A c franchise. model th the si ten c t i t requirements of the statute. a visions to define their rights and obligations en s roved franchise would have to be cons app i pro with respect to payment of a franchise fee, f ons with model franchise, but certain provis otiable (e.g. franchise period, ld be ne deployment of provider's system, provision o support of PEG channels rvice to residents s g wou deployment period, PEG support, I-NET , e and institutional networks support). tion of D Incumbent's franchise would be in effect until I-NETS ,etc. Q sumabl rP hi o r t of limit d duration. rThe model franchhseuld be ura franchise it expires, but is subject to right of otiation; if city refuses requested rene y, re se. a franc on ec fic dura P they are seeking to obtain "perpetual t' a Bement should sugget 10 years as the ~' ld t g modification, franchise could be rendered nu{I s franchises", similar to those which Qwes decessor received from the State for franchise of have dis reton toto negotiat a i and void and incumbent provider could after obtain certificate of franchise r th pre telephone service in 1897. A perpetual ts shorter or longer duration, depending on mg on the u e e authority from Secy of State for indeterminate rovider can obtain etitive C i d franchise cedes virtual ownership of public property to a private entity without if any required by the period oof ime P the investment made by it recou t hi p omp . per o certificate of franchise authority from Secy of consideration. In this age of free competition, no entity should be given a perpetual franchise. p o see franc to deploy its system. State for indeterminate period. The duration of a franchise should be limited to the reasonable period of time necessary for the provider to recoup the investment required to deploy its system, after making a reasonable Authorization of Upon expiration of incumbent provider's rofit. Qwest / ITA proposal does not authorize a ge Based on federal authorization of cable ss ~ i s franchise fee a franchise, incumbent is reg Cities will continue to face chalenges to , fiable c studies of ver revenues and city expressed as a oss ercent of franchise fee equal to the p g n i l %l o specified f revenue assessednimmY de taloy derrrequired to Corp p termination and money `proving up" their a pending time s revenues of gross fee of up to 5 franchise Cities should have blanket authority justified percentage o "gross revenues" . pay a franchise fee -percent not specified. in court challenges. . to impose a franchise fee of up to a 5% without having to in each case justify the fee in terms of costs actually incurred by the city; except that a new competitive provider should not be charged a franchise fee exceeding that paid by an incumbent rovider. "Gross ro osal def~eS ical The Qwest 1 ITA P o ly than ~ Definition of revenue' more Harr chise "gross revenues" ~cumbent cable television fran for purposes of calculating the I franchise fee a city may, at its ro osal, ear, Under Q.Nest 1 ITA P P once per y Audit of franchise d not more than erfornl a expense an ents rovider's calculation of fee paYm request the state auditor to p reasonabhise fee°f a p the fran ~° oss revenue" should be at least I Definition of gr is defined ~ existing as broad as that terns bent uicum franchise agreements with If narrower definition franc hises providers. statute applies to new rovider revenue iTS etitive providers, new p issued to comp chise fee than the Cage over would pay less fran fair advan • cumbent and willhave un be ufre cities to P chiSee ha unfair to req where the fran chise instances, p~t'cularly a ent of fran shortchanged the city sii P la amount. fees b more than a minim services, 11 roviders of cable or vi eO oved or state issued dude a chise legislation should m than has Cable fran « ross reveHowever, the broader definition o we t !ITA. been proposed b u grevenues" in a franchise definition of ~ etitive provider sho eedra nttlie issued to a comp franchise agr same as in the existinrovider. with the incumbent p city should be abnot mor L~han in A franchising to ensure bent. chising cites (no`N franchisee's business records, the incum ear to the extent necessary This would restrict all fS alone) to use of the once per Y aired franchise fee, over 300 withMediacom payment of the Teq chisee's records of cablop nr ate review of the fran of revenue State Auditor to review ine if app including to sign portions video fralichisees to dete aid .There is no methodology ices. If audit shows from bundled serv o the franchisee franchise fees have been p ent of more than 5 l°, audit assuuance the State Auditor has the resources ° underpaYlT1 a cued to reimburse city experts provide this service. Private audit firms are should be q ed to handle this function. erase of engaging tter equipp ay audit costs in all s costs, including exp cites not ose that franchismSi e A P der city aPPr sere whether ~ abed to comp should be req cified a spe h Mandatory v ro (west I ITA P p • comp ufre a new be allowed to req chise (certificate of te to fr n in franchise, stems wit re uirement, the build-out °f ee Absent such a q herry Pick u " deployment or build-out a der a Sect' of Sta provider use issued by franchise authors an)datory build-out c period of t n • rovider will etitive p ex ect to new comp hbOfhoods where it can P other iequirement comply with a m Proposal does not includewould hich g those nei ice and leave arket its serv Bven ils fr1e ice ent. reglsuem uirements w build-out req chj$ee under statutory able to fran i .billy m without serv . etitive neighborhoods the comp hbO1hoods, r service f c ise appl be otherw chise. issued frail t e selected net ght be tempted to of g e~~ provider mi a certau' percenta e sta ~ rt penetration °f en e{use to invest in s . homes, and th to reach all home sary facilities neces elude a that I chise legislation should in Cable frai' , chise be "default build-eS ~~e~°ate i sued ~ as~~ °lo new franchise a to at chise required to provide servone year after fran of city residents within residents (b) to at least 70°ci°ise issuan0e' and issuance; within two yew's after frail within three Years (c} to 100°1° of city residents cities However, otiate a sc~5et build- after franchise issuance should oa in a city aPPT°ved fran out p l . Under Qwest I ITA proposal, if an ci for I a franchising tY t Support for - 1, public, d o incumbent pays a fee ort any subsequent holder of ort fee PEG supp a the PEG supp t educational an governmen~l P Y issued franchise mus the same rate. etitive camp i PEG) channels ( at ty, s of request by c Wlin 180 day ate sufficient capac~h' on i and H provider must des g rovision of a its network to allow the P els that the of PEG charm b d 2. institutional er rovide comparable mm~ umbent provider has activated and p o such If i networks {I--NETS) n nc ceder a franchise agreement. nnels are active, a city over 50,000 hannels, and a h c a population may request 3PEG c under 50,000 population may request 2 city PEG channels. Qwest /ITA proposal ort of I-NETS•s 2 , monetary or in-kind supp l , Under some existing franchises, the rovider is required to provide both incumbent p els and in-kind support {dedicated charm els, as associated bandwidth) for PEG charm o erate ui and P well as monetary supp°~ t0 eq pro osal such channels. The Qwest / iTA p P would only require the competitive provider to provide monetary support if the incumbent was monetary supp°rt~ and would allow providing uest PEG channels the franchising city tO Leq rovided by the comparable in number to those p incumbent Provider. 1. Cable franchise legislation snou-u ui~•»-- "default" PEG support requirements which should be included ul state issued franchises e competitive provider to provide 3 PEG channels or the Largest number of PEG channels provided by any cable operator providing service in the franchised area as of the statutory effective date and the greater of: 3°l0 of gross revenues or the greatest value, on a ants and per subscriber basis, of all monetary gr in-kind services or facilitie a or in the franchise rovided by any cable op P the calendar year Preceding the area in mmg statutory effective date; PEG program available to all subscribers, etc.)• 2 Many franchising cities have developed I institutional networks (I-NETs), using broadband capacity available through the ~cumbent cable provider. These I-NETS critical city support the provision of many functions -police and fire communications; remote monitoring and control of traffian~s n~o1 systems, sewer and water treatment ex anding. etc.), and such uses are continual) ~c~nbent It would be unfair to requort f i NETs. providers to provide supp d 2, Cable franchise legislation should include "default" 1-NET support requirements which should be included in state issued franchises (e,g, competitive provider to provide I-NET facilities and services to city equivalent in utility to those provided by mcumbent I franchisee). 3. Cities should not b°e~ from ad o°np taiiung etitive PEG and I ~T supp provider whit t re eives from rts ~0~be t l.IE,T suppo ci is already provider. If a franchising ~' ort from its receiving sufficient PEG suPu es additional I- ~cumbent provider, but req otiate NET support it should be allowed to neg with the competitive provider to obtain the additional I-NET support in lieu of PEG support. ~_. 3 The Qwest 1 ITA prop°sal does not affor franchising cities sufficient flexorth~ m both obtaining PEG and t Np'T supp etitive the incumbent provider and a new comp provider. 4 A roposal, competitive chises would Under Qwest 11T P issued fran iicable state ent of providers under stat; with all app Managem ces and regulations ht of- be required t0 comp y f a ublic public ng d municipal ordu'an anon o P way (PROW) regs~d fgvaY {n the delivery of the cable or right ° ice. video serv roposal does not address overnmcnt buildings by Qwest ! 1T A p or new Connections to connection Abe t providers government either Lifi a providers. buildings compe of ~ Enforcem statutory and fr'ar1e111Se requirements applicablev deo cable and oviders service p -~ ri~ oral reg~dnQt broad ~e Qwest ! ITe en authority of-`uay m~'aglicit enough. enough °r exp shauld provide that ice providers are Cable franehj$e leg~station all cable and video°st ty of the franchising city e auth hts-of-way, man g subject;at the uSe of city rig a ement pursuant to any right-of-way to the franchise the da ur~t to such ordinance in effect on ended. was approved Hier afte ad pted or am ordinances as r°vide that islation should P would be Cable franchise leg ice prov~dee one s u ice chises, d video serv all cable an rovide, without charg 'ice an current cable tele feed t P ovide required t° P for basic cable serv broadband Under many rovider has ~ ectivity to outlet, activated cess at no less than ublic the incumbent P broadband cone • intemet ac s, including basic and all fire stations, P ies, and cablanety of g° ~rnn-ental building bons, speed, to any stations, Public librar schools, police sta olive for city or othefrranchise a ublic ections schools, p , s used fire stations, P eta These cone of city other building oses within the public hbrarieS, of a var~etY ld be enrol Pure ce ~e provision [t woo governor enhan are now relied bent providers to area• $ervices and wire only in°um airing new unfair to rea ect~ons. Rea ovide such ch corm to also P prove et ti e providers ceded back-uP in comp ~rould provide n storm) wh'ch connectivity ergenay event the event of an ele s stem. .- __t,1ar1 the cab not address osaldoes francbise Qw~t t IT A prop tutory a°cable and video enforcement °f sta ents appbcable to regnirem I service pro~`ders• islation sh°uld provi ha~at Cable franchise leg or the IIJ$ would 1 A franchising city h day of the right: 1 er ose a civil Pena ty f °r ~ $10 AO p (a) To imP~ in„ount not to ex~,,here the default in ed by provideC, ed the default upon notice• subscriber sere finding °f a applicant cur ~chise uP° aaafter notice (b) To revoke th ghat is not cure willfulviolati~,ty for ahe ~ ~ shouldhave and an op~ ismg C1ty or thetion against the p, fran 2• to bring a evil ac event authority court of cO~or for an order franchisee f~damages, an jurisdiction rectify the appropriate directing the PrO oato provide oth noncompliance relief The Honorable Pat Murphy Speaker of the House Iowa State Representative 155 N. Grandview Avenue Dubuque, IA 52001 The Honorable Tom Hancock Iowa State Senator 310 E Main Street Epworth, IA, 52045 The Honorable Pam Jochum Iowa State Representative 2368 Jackson Dubuque, IA 52001 The Honorable Steven Lukan Iowa State Representative 7365 Columbus Street New Vienna IA 52065 The Honorable Mike Connolly Iowa State Senator 2600 Renaissance Dr #3 Dubuque, IA 52001 The Honorable Roger Stewart Iowa State Senator 3936 317 Avenue Preston, IA 52069 The Honorable Thomas Schueller Iowa State Representative 503 W. Platt Street Maquoketa, IA 52060 The Honorable Ray Zirkelbach Iowa State Representative 637 W. First Street Monticello, IA 52310 February 22, 2007 «CompleteOFFICIALName Address» Dear «Title» «Last», In November 2006 the City of Dubuque was designated an Iowa Great Place by the Iowa Department of Cultural Affairs. Included in our application was a request for $900,000 in funding to go toward our Envision 2010 projects. This $900,000 in funding will leverage over $11 million in additional funding for the Envision 2010 projects which includes funding for expansion of our 26-mile hike/bike trail system, including bi-lingual signage for a portion of the city trail system. As you know, this trail system weaves throughout the City of Dubuque, including such areas as Heron Pond Wetlands and the Port of Dubuque (home of the $188 million America's River Phase I and soon underway the nearly $200 million America's River Phase II). The trail system also traverses through the Mines of Spain and runs north to connect to Heritage Trail in Dubuque County. I am writing to request your support of additional FY 2008 Federal Funding for the trail development as part of the City of Dubuque's Iowa Great Places designation. Thank you for your continued efforts on behalf of cities in Iowa. Please feel free to contact me at 563-589-4110 if you have any questions or would like additional information about this or the other exciting projects happening in Dubuque. Thank you for your continued support for Iowa's transportation system. Sincerely, Michael C. Van Milligen City Manager MCVM:cs cc: Mayor Roy D. Buol City Council Members Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Senator Tom Harkin United States Senate 731 Hart Building Washington, DC 20510 Congressman Bruce Braley 1408 Longworth House Office Building Washington, DC 20515 Senator Charles Grassley United States Senate 135 Hart Office Building Washington, DC 20510-1501 City Manager's Office City Hall 50 West 13~^ Street Dubuque, IA 52001-4864 (563) 5891I110 phone (563)589-4149 fax (563) 690-6678 TDD ctymgr~)cityofdubuque.org THE CITY OF L~~B f _ ~ February 28, 2007 «CompleteOFFICIALName_Address» Re: TIF and Instructional Support Levy Dear «Title» «Last»: wanted to write you with my input concerning legislation affecting Tax Increment Financing and the Instructional Support Levy. Please consider three issues related to the removal of the Instructional Support Levy from Tax Increment Financing revenues. The City has great difficulty creating incentives for redevelopment of slum and blight areas. Two cases in point are downtown Dubuque and the former Dubuque Pack site. TIF is an important incentive to clear up slum and blight. The TIF districts in Dubuque will receive $113,539 less in revenues if the Instructional Support Levy is removed. Of that amount, $52,923 will come from slum and blight districts. Economic development districts account for $60,616. Please consider exempting slum and blight districts from this legislation. The City also has obligations related to the existing revenue stream of TIF districts. Please consider existing revenue streams already obligated through the issuance of debt or through development agreements with businesses. While the City does not support this legislation, if it does pass these changes will minimize the negative impact on the Ciry's economic development and redevelopment efforts. Sincerely, /7~ Michael C. Van Milligen City Manager City of Dubuque «Title» «First» « First»cLast» February 28, 2007 Page 2 MCVM:jh cc: Mayor Roy Buol Dubuque City Council Molly Grover, President & CEO, Dubuque Area Chamber of Commerce Rick Dickinson, Executive Director & COO, Greater Dubuque Development Corp. Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager David Heiar, Economic Development Director Susan Judkins, Director of Government Affairs, Iowa League of Cities Brendan Houlihan, Interim Director of Government Affairs, Dubuque Area Chamber of Commerce Service People Integrity Responsibility Innovation Teamwork The Honorable Pat Murphy The Honorable Mike Connolly Speaker of the House Iowa State Senator Iowa State Representative 2600 Renaissance Dr #3 155 N. Grandview Avenue Dubuque, IA 52001 Dubuque, IA 52001 The Honorable Tom Hancock The Honorable Roger Stewart Iowa State Senator Iowa State Senator 310 E Main Street 3936 317 Avenue Epworth, IA, 52045 Preston, IA 52069 The Honorable Pam Jochum The Honorable Thomas Schueller Iowa State Representative Iowa State Representative 2368 Jackson 503 W. Platt Street Dubuque, IA 52001 Maquoketa, IA 52060 The Honorable Steven Lukan The Honorable Ray Zirkelbach Iowa State Representative Iowa State Representative 7365 Columbus Street 637 W. First Street New Vienna IA 52065 Monticello, IA 52310