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Greater Downtown Urban Renewal District - Amendment_InitiateMasterpiece on the Mississippi Dubuque band AI -America City 11111r 2007 • 2012 • 2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution of Necessity for the Amendment for the Greater Downtown Urban Renewal District Plan DATE: May 15, 2014 Economic Development Director Maurice Jones recommends City Council approval of a Resolution of Necessity that finds that an amendment of the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District is both necessary and appropriate and sets a public hearing on the proposed amendment for June 16, 2014. The proposed amendment of this District would expand the District to include the area formerly designated as an urban renewal area under the Urban Renewal Plan for the Holy Ghost Urban Renewal District and to create both a new Holy Ghost Connection Subarea and an Almond Street Subarea. I concur with the recommendation and respectfully request Mayor and City Council approval. bd-t44 ,,,,, Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director THE CITY OF Dui Masterpiece on the Mississippi Dubuque katil All -America City 1111 2007 • 2012 •2013 Economic Development Department 50 West 13th Street Dubuque, Iowa 52001-4864 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org TO: Michael Van Miliigen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Resolution of Necessity for the Amendment of the Greater Downtown Urban Renewal District Pian DATE: May 14, 2014 INTRODUCTION This memorandum presents for City Council consideration a Resolution of Necessity that: 1) finds that an amendment of the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District is both necessary and appropriate; and 2) sets a public hearing on the proposed amendment for June 16, 2014. The proposed amendment of this District would expand the District to include the area formerly designated as an urban renewal area under the Urban Renewal Plan for the Holy Ghost Urban Renewal District and to create both a new Holy Ghost Connection Subarea and an Almond Street Subarea. (see Attached Map) BACKGROUND The Downtown Dubuque Urban Renewal District was originally established in 1967. It has been amended and restated on several occasions over the years to expand the boundaries to include the Old Main area, the Iowa Inn property, Dubuque Museum of Art, Historic Federal Building, Locust Street Parking Ramp, the Carnegie -Stout Public Library, the South Main area, the Warehouse District, the South Port area, the Cable Car area, the Bluff Street area, the South Bluff area, the Ice Harbor area, the Industrial Harbor, the Washington Neighborhood, Chaplain Schmitt Island, the East 7th Street area and the Kerper Boulevard area. On October 1, 2013, the Greater Downtown Urban Renewal District was expanded to include the North Kerper Boulevard Subarea, along with the merger of the adjacent Quebecor Economic Development District. The expansion allowed both public and private development efforts to benefit from the flexibility in the use of tax increment financing in the larger district. Before a municipality can exercise the authority conferred by Chapter 403 "Urban Renewal" of the Iowa Code, a Resolution of Necessity must be adopted finding that the area being considered for urban renewal district designation is either a slum, blighted or economic development area and that the rehabilitation, conservation, redevelopment, development, or a combination thereof, of the area is necessary in the interest of the public health, safety or welfare of the residents of the city. The Iowa Code defines a blighted area as, "an area of a municipality within which the local governing body of the municipality determines that the presence of a substantial number of slum, deteriorated, or deteriorating structures; defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; or the existence of conditions which endanger life or property by fire and other causes; or any combination of these factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, or welfare in its present condition and use." An economic development area is defined as, "an area of a municipality designated by the local governing body as appropriate for commercial and industrial enterprises, public improvements related to housing and residential development, or construction of housing and residential development for low and moderate income families, including single or multifamily housing." The Holy Ghost Connection Subarea and an Almond Street Subarea are proposed to be designated as a blighted area. The need to expand and amend the Greater Downtown Urban Renewal District has risen from the desire to utilize tax increment financing for the creation and development of additional housing units and residential opportunities in the District, and an increase in the level of homeownership in the District. The amendment will also allow the continued use of tax increment financing to promote economic development activities throughout the District for Fiscal Year 2014-2015. Pursuant to House File 2460, the amended plan will describe the specific use of tax increment funds, reflecting the utilization of tax rebates, the creation of public infrastructure, or other planned expenditures. DISCUSSION This proposed expansion and amendment of the Greater Downtown Urban Renewal District would result in the creation of a new Holy Ghost Connection Subarea and an Almond Street Subarea. The expanded District would allow tax increment financing to be utilized to support economic development in the Greater Downtown region. The attached Resolution directs staff to prepare an Amended and Restated Urban Renewal Plan, setting forth the urban renewal projects that are currently expected to be undertaken in the District, and to forward the Plan to the Long Range Planning Commission for its review and comment. This is required by Chapter 403 along with a consultation process that provides the County and School Board an opportunity to comment on the proposed Plan prior to the required public hearing by the City Council. Pg*R$P°PARA199g59n1'. 9ifo4V9NWP 149FJ�Cess AFPPW�vntown .doc Additionally, to the extent the amendment includes the use of tax increment revenues for a public building, an analysis must be provided demonstrating alternative development and funding options for such public buildings. A City Council public hearing on the Amended and Restated Urban Renewal Plan will be scheduled for June 16, 2014. The public notice will be published four to twenty days before the meeting to allow for the appropriate publication requirements. This will allow time for preparation of the Plan, review and comment period by the Long Range Planning Commission, preparation of the public building analysis and the consultation process with the taxing entities. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached Resolution of Necessity that begins the process of amending the Urban Renewal Plan for the Greater Downtown Urban Renewal District to expand the District to include the Holy Ghost Connection Subarea an Almond Street Subarea as subareas of the Greater Downtown Urban Renewal District. Attachment Pg*R$P°PARA199g59n1'. 9ifo4V9NWP 149FJ�Cess AFPPW�vntown .doc RESOLUTION NO. 153-14 A RESOLUTION OF NECESSITY FINDING THAT CERTAIN AREAS ADJACENT TO THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT MEET THE DEFINITION OF A BLIGHTED AREA UNDER THE URBAN RENEWAL LAW, AND THAT DEVELOPMENT OF SAID AREAS IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AND SETTING DATES OF HEARING AND CONSULTATION ON A PROPOSED AMENDEMENT TO THE AMENDED AND RESTATED URBAN RENEWAL PLAN FOR SAID DISTRICT. Whereas, the City Council of the City of Dubuque has heretofore approved the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District (the "District") in order to provide redevelopment opportunities which will further the purposes and objectives of the foregoing Urban Renewal Plan; and Whereas, the City Council has found that certain areas adjacent to the District meet the definition of a blighted area as found in Chapter 403 "Urban Renewal" of the Iowa Code; and Whereas, Chapter 403 of the Iowa Code requires that before urban renewal authority may be exercised, a City Council must adopt a resolution of necessity finding that the area in question is a slum, blighted or economic development area, and that so designating such area is necessary in the interest of the public health, safety or welfare of the residents of the municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Almond Street and Holy Ghost Sub -areas generally described in Exhibit A to this Resolution, which are proposed to be added to the Greater Downtown Urban Renewal District, are blighted areas as defined by Chapter 403 of the Iowa Code and are appropriate for an urban renewal project.. Section 2. That the development of the above-described expansion areas is necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning and local community objectives. Section 3. That the City Manager is authorized and directed to prepare an Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District to accomplish the foregoing purposes and objectives, to include in such Plan any appropriate project activities and details, to forward said Plan to the City's Long Range Planning Advisory Commission for review and comment, and to determine an appropriate date for and conduct the consultation process required by law with affected taxing entities concerning the proposed amendment. Section 4. That the City Council hold a public hearing on the adoption of the proposed Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District on June 16, 2014 at 6:30 p.m. in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa 52001. The notice of said hearing shall generally identify the areas covered by the Amended and Restated Plan, the areas proposed to be added to the District, and the general scope of the urban renewal activities planned for such areas, and said notice shall be published and available to the public not less than four days nor more than twenty days before the date of said meeting. A copy of the notice of public hearing shall be sent by ordinary mail to the affected taxing entities. Section 5. That the City Clerk is further directed to send by ordinary mail a copy of said Amended and Restated Urban Renewal Plan, the notice of public hearing, and, to the extent the amendment includes the use of tax increment revenues for a public building, an analysis of alternative development and funding options for such public buildings, to the Dubuque Community School District and the County Board of Supervisors, as the affected taxing entities. Passed, approved and adopted this 19th day of May, 2014. Attest: Kevin Firnstahl, City Ierk Roy D. Buol, Mayor Greater Downtown Urban Renewal District Attachment A: Subarea Map S1 h:\Economic Development\Urban Renewal Greaterpowntown.mxd map: AttachmentA.pdf created by nmb 2013-04-24, updated 2014-04-29 LEGEND Almond St Subarea Bluff Street Subarea Cable Car Subarea Chaplain SchmittSubarea Street Subarea Harrison StreetSubarea Holy Ghost -Subarea Qi2 Big Harbor Subarea A Harbor Subarea Harbor Subarea Industrial Kerper Subarea BoulevarthSubarea Kerper Subarea Main Subarea Quebecor Economic.Development ategb Th Bluff Subarea Main Subarea PortSubarea Zutaitea Subarea Expansion Upper Main Subarea Warehouse Subarea Washington Subarea Street Subarea