Tax Increment Ordinance Greater Downtown Urban RenewalTHE CITY OF
DUB E
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MEMORANDUM
April 11, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Tax Increment Ordinance for the Greater Downtown Urban Renewal
District
On February 2007, the City Council approved an Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal District which added four
properties to the Urban Renewal District, including the Locust Street Ramp, Carnegie-
Stout Public Library, former U.S. Federal Building, and the former Adams Company
property.
Economic Development Director Dave Heiar is recommending amendment of the Tax
Increment Ordinance to establish the use of tax increment financing to existing and
expanding areas of the district.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Z ~ ~ ~_
Michael C. Van IVlilligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF
DuB E MEMORANDUM
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April 10, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Directory ~.;
SUBJECT: Tax Increment Ordinance for the Greater Downtown Urban Renewal
District
Introduction
This memorandum transmits for City Council review and adoption an ordinance
amending the tax increment financing district for the Greater Downtown Urban Renewal
District. The proposed ordinance and associated certifications were prepared by the
City's bond counsel and are attached to this memo.
Background
On February 20, 2007, the City Council approved an amended and restated Urban
Renewal Plan for the Greater Downtown Urban Renewal District which added four
properties to the Urban Renewal District (Locust Street Ramp, Carnegie-Stout Library,
Former U.S. Federal Building, and the Former Adams Company Property). The tax
increment ordinance also needs to be updated to allow for TIF collection on these
properties.
Discussion
Adoption of the proposed tax increment ordinance is needed to establish the use of tax
increment financing to existing and expanded areas of the district. The ordinance
authorizes the City to establish a special fund for the collection of a portion of the
property tax revenues generated by new development occurring within the five
subareas of the district. All taxable property located with the tax increment district will
continue to pay property taxes based upon the current tax levies and assessment
valuations. Tax revenues collected in excess of the base amounts will be used to assist
in financing future development projects within the district, including both public and
private development.
Adoption of the ordinance will continue the base valuations for the Original Project
Areas (all five subareas). The new areas will be assigned a base valuation date.
Recommendation
I recommend that the City Council approve the tax increment ordinance for the Greater
Downtown Urban Renewal District. Tax increment financing is an important tool for
economic development and will be used to assist future public and private development
efforts in the downtown and riverFront area.
Action Step
The action step is for the City Council to approve the amended tax increment ordinance
attached hereto.
attachment
F:\USERSWdejonglUrban Renewal\2007.1 Amendment\TIF Ordinance120070406 TIF ord memo.doc
ORDINANCE NO. 20-07
AN ORDINANCE AMENDING ORDINANCE NOS. 35-04, 30-82 AND 66-89, AS
PREVIOUSLY AMENDED, PROVIDING THAT GENERAL PROPERTY TAXES
LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED
WITHIN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT OF THE
CITY OF DUBUQUE, COUNTY OF DUBUQUE, STATE OF IOWA, BY AND
FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF DUBUQUE, COUNTY
OF DUBUQUE, DUBUQUE COMMUNITY SCHOOL DISTRICT, .AND OTHER
TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF
PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND
INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED,
INCURRED BY SAID CITY IN CONNECTION WITH THE URBAN RENEWAL
PLAN FOR THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT
WHEREAS, the City Council of the City of Dubuque, Iowa (the "City") has
heretofore, in Ordinance No. 30-82, provided for the division of taxes within the original
Downtown Dubuque Urban Renewal Project, Iowa R-15, described in Resolution No.
123-67 adopted on May 18, 1967, pursuant to Section 403.19 of the Code of Iowa; and
WHEREAS, the original Downtown Dubuque Urban Renewal Project, Iowa R-15,
subsequently was amended by Resolution No. 79-71 approved on March 15, 1971, by
Resolution No. 73-74 approved on March 11, 1974, by Resolution No. 107-82 approved
on May 3, 1982, by Resolution No. 191-84 approved on June 25, 1984, by Resolution
No. 371-93 approved on December 6, 1993, by Resolution No. 145-94 approved on
May 2, 1994, by Resolution No. 479-97 approved on November 17, 1997, by Resolution
No. 476-98 approved on October.19, 1998 and by Resolution No. 187-02 approved on
April 1, 2002, which amendments, among other things, added areas referred to as the
Old Main Subarea, Town Clock Expansion Subarea and Upper Main Subarea to the
area of the Downtown Dubuque Urban Renewal District; and
WHEREAS, consistent with the foregoing amendments, Ordinance No. 30-82
subsequently was amended by Ordinance Nos. 23-94, 36-94, 67-97, and 26-02 to
provide for the division of taxes within the several subareas of the amended Downtown
Dubuque Urban Renewal District; and
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WHEREAS, the City Council of the City has heretofore, in Ordinance No. 66-89,
provided for the division of taxes within the original Ice Harbor Urban Renewal District,
described in Resolution No. 403-89 adopted on December 18, 1989, pursuant to
Section 403.19 of the Code of Iowa; and
WHEREAS, the original Ice Harbor Urban Renewal District subsequently was
amended by Resolution No. 241-00 approved on June 5, 2000 and by Resolution 114-
02 approved on March 4, 2002, which amendments, among other things, added an
additional area referred to as Subarea B to the area of the Ice Harbor Urban Renewal
District; and
WHEREAS, consistent with the foregoing amendment, Ordinance No. 66-89
subsequently was amended by Ordinance No. 97-00 to provide for the division of taxes
within the two subareas of the amended Ice Harbor Urban Renewal District; and
WHEREAS, the original Downtown
original Ice Harbor Urban Renewal District
combined into a single urban renewal area,
for the Greater Downtown Urban Renewal
adopted on April 19, 2004; and
Dubuque Urban Renewal District and the
and their respective Subareas have been
under the terms of an Urban Renewal Plan
District, pursuant to Resolution No. 170-04
WHEREAS, consistent with foregoing amendment, Ordinance Nos. 30-82 and
66-89 were amended by Ordinance No. 35-04 to provide for the division of taxes within
the various sub-areas of the Greater Downtown Urban Renewal District; and
WHEREAS, the Urban Renewal Plan for the Greater Downtown Urban Renewal
District was amended and restated as an Amended and Restated Urban Renewal Plan,
pursuant to Resolution No. 108-07 approved on February 20th, 2007, to provide for the
further expansion of the Greater Downtown Urban Renewal District; and
WHEREAS, indebtedness has been incurred by the City, and additional
indebtedness is anticipated to be incurred in the future, to finance urban renewal project
activities within the combined area known as the Greater Downtown Urban Renewal
District (the "Greater Downtown Urban Renewal District"), and the continuing needs of
redevelopment within the Greater Downtown Urban Renewal District are such as to
require the continued application of the incremental tax resources of the Greater
Downtown Urban Renewal District; and
WHEREAS, the following enactment is necessary to accomplish the objectives
described in the premises.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA, THAT:
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Ordinance No. 35-04 (Ordinance No.
94, 36-94, 67-97, and 26-02, and Ordinance
97-00) is hereby amended to read as follows:
30-82, as amended by Ordinance Nos. 23-
No. 66-89, as amended by Ordinance No.
Section 1: For purposes of this Ordinance, the following terms shall have the
following meanings:
(a) Original Town Clock Subarea shall mean that portion of the Amended
Project Area initially described in the Urban Renewal Plan for the Downtown Dubuque
Urban Renewal Project, Iowa R-15, approved by Resolution No. 123-67 on May 18,
1967, as amended by the Amended and Restated Urban Renewal Plan for the Greater
Downtown Urban Renewal District approved by Resolution No. 108-07 on February
20th, 2007, which Original Town Clock Subarea includes the lots and parcels located
within the area now legally described as follows:
Beginning at the intersection of the north right-of-way line of Ninth Street with the
east right-of-way line of Central Avenue; thence south along the east right-of-way
line of Central Avenue to its intersection with the south right-of-way line of Fourth
Street; thence west along the south right-of-way line of Fourth Street to its
intersection with the west right-of-way line of Locust Street; thence north along
the west right-of-way line of Locust Street to its intersection with the north right-
of-way line of Ninth Street, but also including the adjacent City Lots 623 and 624
(Dubuque Museum of Art), the Locust Street Parking Ramp between 8th and 9th
Streets and the former U.S. Federal Building located on City Lots 101, 102, 139,
140, and the N 54.5' of City Lots 103 & 138, and the vacated alley between said
lots; thence east along the north right-of-way line of Ninth Street to its
intersection with the east right-of-way line of Central Avenue, but also including
the adjacent Iowa Inn property and the public parking lot known as Parking Lot
Number 1 located between 9th and 10th Streets east of Iowa Street, to the point
of beginning
(b) Old Main Subarea shall mean that portion of the Amended Project Area
initially described in the Amended and Restated Urban Renewal Plan for the Downtown
Dubuque Urban Renewal District approved by Resolution No. 145-94 on May 2, 1994,
which Old Main Subarea includes the lots and parcels located within the area legally
described as follows:
Beginning at the intersection of the south right-of-way line of Fourth Street with
the east right-of-way line of Central Avenue; thence west along the south right-of-
way line of Fourth Street to the west right-of--way line of Locust Street; thence
south along the west right-of-way line of Locust Street to the north right-of-way
line of the Locust Street Connector; thence east along the north right-of--way line
of the Locust Street Connector to the west right-of-way line of Highways 151/61;
thence north along the west right-of--line of Highways 151/61 to the point of
beginning.
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(c) Town Clock Expansion Subarea shall mean that portion of the Amended
Project Area initially described in the Amended and Restated Urban Renewal Plan for
the Downtown Dubuque Urban Renewal District approved by Resolution No. 479-97 on
November 17, 1997, which Town Clock Expansion Subarea includes the lots and
parcels located within the area legally described as follows:
South 1/2 of City Lot 167, City Lot 168 and City Lot 168A; Lots 1 & 2 of City Lots
204, 205, 206, 207 and 208, N. 23' of City Lot 263, S. 28.5' of City Lot 263, N. 1/2
of City Lot 262, S. 1/2 of City Lot 262, N. 1/2 of City Lot 261, all in Section 24,
Township 89 North, Range 2 East, 5th P.M., Dubuque County, Iowa and any
adjoining public right-of--way.
(d) Upper Main Subarea shall mean that portion of the Amended Project Area
initially described in the Amended and Restated Urban Renewal Plan for the Downtown
Dubuque Urban Renewal District approved by Resolution No. 187-02 on April 1, 2002,
as amended by the Amended and Restated Urban Renewal Plan for the Greater
Downtown Urban Renewal District approved by Resolution No. 108-07 on February
20th, 2007, which Upper Main Subarea includes the lots and parcels located within the
area legally described as follows:
On the North by Fourteenth Street, on the West by Locust Street but also
including adjacent City Lots 660, 659, 658A and 658 except the south 1' of City
Lot 658 (Carnegie-Stout Public Library), on the South by the Town Clock
Expansion Subarea and on the East by Central Avenue, including all public
rights-of-way.
(e) Ice Harbor Subarea A shall mean that portion of the Amended Project
Area initially described in the Urban Renewal Plan for the Ice Harbor Urban Renewal
District approved by Resolution No. 403-89 on December 18, 1989, which Ice Harbor
Subarea A includes the lots and parcels located within the area legally described as
follows:
that area generally bounded on the north by the public alley located between the
vacated Fourth Street and Third Street, on the west by the Chicago, Central and
Pacific Railroad right-of-way, on the south by East First Street and on the east by
the municipal limits of the City of Dubuque, Iowa and including any adjoining
public right-of-way.
(f) Ice Harbor Subarea B shall mean that portion of the Amended Project
Area initially described in the Amended and Restated Urban Renewal Plan for the Ice
Harbor Urban Renewal District approved by Resolution No. 241-00 on June 5, 2000,
which Ice Harbor Subarea B includes the lots and parcels located within the area legally
described as follows:
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that area generally bounded on the north and west by the Chicago, Central and
Pacific Railroad right-of-way, on the south by the northerly boundary of the Ice
Harbor Subarea A and on the east by the municipal limits of the City of Dubuque,
Iowa (excluding Lot 1 Adams Co.'s 2nd Addition) and including any adjoining
public right-of-way
(g) Ice Harbor Subarea C shall mean a portion of the Amended Project Area
added by the Amended and Restated Urban Renewal Plan for the Greater Downtown
Urban Renewal District approved by Resolution No. 108-07 on February 20th, 2007,
consisting of Lot 1 Adams Co.'s 2nd Addition and any adjoining public right-of-way.
(h) Amended Proiect Area shall mean the areas of the City of Dubuque, Iowa
included within the Original Town Clock Subarea, the Old Main Subarea, the Town
Clock Expansion Subarea, the Ice Harbor Subarea A, the Ice Harbor Subarea B, and
the Ice Harbor Subarea C, each as described in this Section.
(i) Urban Renewal Plan shall mean the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal District, approved by
Resolution No. 108-07 on February 20th, 2007, as the same may be amended from
time to time.
Section 2: The taxes levied on the taxable property in the Amended Project
Area, legally described in Section 1 hereof, by and for the benefit of the State of Iowa,
City of Dubuque, County of Dubuque, Dubuque Community School District, and all
other taxing districts from and after the effective date of this Ordinance shall be divided
as hereinafter in this Ordinance provided.
Section 3: As to the Original Town Clock Subarea, that portion of the taxes
which would be produced by the rate at which the tax is levied each year by or for each
of the taxing districts taxing property in the Original Town Clock Subarea upon the total
sum of the assessed value of the taxable property in the Original Town Clock Subarea
as shown on the assessment roll as of January 1, 1966, being the assessment roll last
equalized prior to the date of the initial adoption of the Urban Renewal Plan for the
Downtown Dubuque Urban Renewal Project, Iowa R-15, shall be allocated to and when
collected be paid into the fund for the respective taxing district as taxes by or for said
taxing district into which all other property taxes are paid. The taxes so determined
shall be referred herein as the "base period taxes" for such subarea.
As to the Old Main Subarea, base period taxes shall be computed in the same
manner using the total assessed value shown on the assessment roll as of January 1,
1993, being the assessment roll as of January 1 of the calendar year preceding the
effective date of Ordinance No. 23-94.
As to the Town Clock Expansion Subarea, base period taxes shall be computed
in the same manner using the total assessed value shown on the assessment roll as of
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January 1, 1996, being the assessment roll as of January 1 of the calendar year
preceding the effective date of Ordinance No. 67-97.
As to the Upper Main Subarea, base period taxes shall be computed in the same
manner using the total assessed value shown on the assessment roll as of January 1,
2001, being the assessment roll as of January 1 of the calendar year preceding the
effective date of Ordinance No. 26-02.
As to the Ice Harbor Subarea A, base period taxes shall be computed in the
same manner using .the total assessed value shown on the assessment roll as of
January 1, 1988, being the assessment roll as of January 1 of the calendar year
preceding the effective date of Ordinance No. 66-89.
As to the Ice Harbor Subarea B, base period taxes shall be computed in the
same manner using the total assessed value shown on the assessment roll as of
January 1, 1999, being the assessment roll as of January 1 of the calendar year
preceding the effective date of Ordinance No. 97-00.
As to the Ice Harbor Subarea C, base period taxes shall be computed on the
same manner using the total assessed value shown on the assessment roll as of
January 1, 2006, being the first day of the calendar year preceding the effective date of
this Ordinance.
Section 4: That portion of the taxes each year in excess of the base period
taxes for the Amended Project Area, determined for each subarea thereof as provided
in Section 3 of this Ordinance, shall be allocated to and when collected be paid into the
special tax increment fund previously established by the City of Dubuque to pay the
principal of and interest on loans, monies advanced to, or indebtedness, whether
funded, refunded, assumed or otherwise, including bonds issued under authority of
Section 403.9 or Section 403.12 of the Code of Iowa, incurred by the City of Dubuque,
Iowa to finance or refinance, in whole or in part, urban renewal projects undertaken
within the Amended Project Area pursuant to the Urban Renewal Plan, except that
taxes for the regular and voter-approved physical plant and equipment levy of a school
district imposed pursuant to Section 298.2 of the Code of Iowa (but only to the extent
required under Section 403.19(2)) and taxes for the payment of bonds and interest of
each taxing district shall be collected against all taxable property within the Amended
Project Area without any limitation as hereinabove provided.
Section 5: Unless or until the total assessed valuation of the taxable property
in the subareas of the Amended Project Area exceeds the total assessed value of the
taxable property in said subareas shown by the assessment rolls referred to in Section
3 of this Ordinance, all of the taxes levied and collected upon the taxable property in the
Amended Project Area shall be paid into the funds for the respective taxing districts as
taxes by or for the taxing districts in the same manner as all other property taxes.
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Section 6: At such time as the loans, monies advanced, bonds and interest
thereon and indebtedness of the City of Dubuque referred to in Section 4 hereof have
been paid, all monies thereafter received from taxes upon the taxable property in the
Amended Project Area shall be paid into the funds for the respective taxing districts in
the same manner as taxes on all other property.
Section 7: All ordinances or parts of ordinances in conflict with the provisions
of this Ordinance are hereby repealed. The provisions of this Ordinance are intended
and shall be construed so as to continue the division of taxes from property within the
Amended Project Area under the provisions of Section 403.19 of the Code of Iowa, as
authorized in Ordinance Nos. 35-04, 30-82 and 66-89, as amended by Ordinance Nos.
23-94, 36-94, 67-97, 26-02 and 97-00, and to fully implement the division of taxes in Ice
Harbor Subarea C. In the event that any .provision of this Ordinance shall be
determined to be contrary to law it shall not affect other provisions or application of this
Ordinance which shall at all times be construed to fully invoke the provisions of Section
403.19 of the Code of Iowa with reference to the Amended Project Area and the territory
contained therein.
Section 8: This Ordinance shall be in effect after its final passage, approval
and publication as provided by law.
PASSED AND APPROVED this 16th day of April,2007.
Roy D. Buol, Mayor
ATTEST: Jeanne Schneider
City Clerk
Read first time:
April 16, 2007
Read second time:
April 16, 2007
Read third time: April 15, 2007
PASSED AND APPROVED:
April 16, 2007
PUBLISHED: April 20, 2007
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