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Urban Renewal Dis - DowntownMEMORANDUM January 16, 2002 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Resolution of Necessity for an Amended and Restated Urban Renewal Plan for the Downtown Dubuque Urban Renewal District 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 and the Dubuque Museum of Art. Economic Development Director Bill Baum is recommending expansion of the district to assist the rehabilitation of the former Walsh Store property by Heartland Financial Services, and establishment of a public headng for April 1, 2002, to consider the amended and restated Urban Renewal Plan. The proposed amendment would extend the boundaries northward to 14th Street, with the same east-west boundaries as the existing district, being Central Avenue on the east, and Locust Street on the west. This expansion also includes the properties between the Walsh Building and the existing boundary along 9th Street, which will support the efforts of the Vision Downtown Plan to provide incentives for reinvestment and new housing opportunities in the downtown area. Private development in the district would have access to the Tax Increment Financing-supported Downtown Rehabilitation Loan Program that offers a deferred Iow-interest rate and incentives for new jobs and housing. concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment CC: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM Januaw 11, 2002 TO: FROM: SUBJECT: Michael Van Milligen, City Manager William Baum, Economic Development Director Resolution of Necessity for an Amended and Restated Urban Renewal Plan for the Downtown Dubuque Urban Renewal District Introduction This memorandum presents for City Council consideration a Resolution of Necessity that: 1) finds that the amendment of the Urban Renewal Plan for the Downtown Dubuque Urban Renewal District is both necessary and appropriate; and 2) sets a public hearing on the proposed amendment for April 1, 2002. The proposed expansion of this district would extend the boundaries of the district to include much of the Vision Downtown study area (see attached map). The proposed expansion will also provide redevelopment tools to assist the proposed rehabilitation of the former Walsh Store that has been proposed by Heartland Financial USA. 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 and the Dubuque Museum of Art. 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 or housing and residential development for Iow and moderate income families, including single or multifamily housing." The expansion area will be designated as an economic development area. See attached map. Discussion The expansion of the District is proposed, in part, to assist the rehabilitation of the former Walsh Store property by Heartland Financial USA. The proposed amendment would extend the boundaries northward to 14th Street to include that property. Inclusion in the District will allow the Walsh Store rehabilitation project to access the tools and incentives available to urban renewal district properties, including tax increment financing and the Downtown Rehabilitation Loan Program. The expansion area also supports the efforts of the Vision Downtown plan to provide incentives for reinvestment and new housing opportunities in the downtown area. Private development in the District would have access to the TIF-supported Downtown Rehabilitation Loan Program that offers a deferred Iow-interest rate and incentives for new jobs and housing. The attached Resolution directs staff to prepare an amended and restated Urban Renewal Plan and to forward the amendment to the Long Range Planning Commission for their review and comment. This is required by Chapter 403 along with a consultation process that involves all affected taxing entities. Those taxing entities, the County, School Board and community college, have an opportunity to comment on the proposed amendment prior to the requi, red public hearing on the urban renewal plan, but they cannot block adoption of the plan. City Council public hearing on the amended and restated Urban Renewal Plan will be scheduled for April 1, 2002. This will allow time for preparation of the plan, review and comment period by the Long Range Planning Commission and the consultation process with the taxing entities. Recommendation I recommend the City Council adopt the attached Resolution of Necessity that begins the process of amending the Urban Renewal Plan for the Downtown Dubuque Urban Renewal District to expand the boundaries ofthe District. The amendment will provide additional tools to encourage reinvestment and redevelopment activities throughout the District and will support, specifically, the proposed former Walsh Store rehabilitation and reuse project and, more generally, the overall Vision Downtown efforts. Action Step The action step for the City Council is to adopt the Resolution of Necessity attached to this memorandum. attachments Prepared by: Pamela Myhre Economic Development Planner F:\USERS\Pmyhre\WPDOCS\U R\DOWNTOWN\Necrnemo02.dwn.doc MAP 1 Expansion of Downtown Urban Renewal District RESOLUTION NO. 30-02 A RESOLUTION OF NECESSITY FINDING THAT THE EXPANSION OF THE DOWNTOWN DUBUQUE URBAN RENEWAL DISTRICT IS AN AREA MEETING THE DEFINITIONS OF BLIGHT AND ECONOMIC DEVELOPMENT AND THAT DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA. Whereas, the City Council of the City of Dubuque has determined that the further expansion of the Downtown Dubuque Urban Renewal District will provide redevelopment opportunities which will further the purposes and objectives of the Downtown Dubuque Urban Renewal Plan; and Whereas, the City Council has found that the proposed expansion area meets the definition of an economic development 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 following described area, which is proposed to be added to the Downtown Dubuque Urban Renewal District, is an economic development area as defined by Chapter 403 of the Iowa Code and is appropriate for an urban renewal project, to wit: Commencing as a point of reference at the intersection of the centerline of 9th Street with Locust Street, said point being the point of beginning: thence northwesterly along the centerline of Locust Street to the centerline of 14th Street; thence northeasterly along the centerline of 14th Street to the centerline of Central Avenue; thence southeasterly along the centerline of Central Avenue to the centerline of 10~ Street; thence southwesterly along the northerly boundary of the existing Downtown Dubuque Urban Renewal District to the point of beginning, containing 30 acres more or less, all located in Section 25, Township 89 North, Range 2 East, 5th P.M., Dubuque County, Iowa and including any adjoining public right-of-way (hereinafter, the "Expansion Area"). Section 2. That the development of the Expansion Area 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 Downtown Dubuque Urban Renewal District, to forward said Plan to the City's Long Range Planning Commission for review and comment and to begin the consultation process required by law with affected taxing entities. Section 4. That the City Clerk is directed to publish notice of a public heating on the adoption of an Amended and Restated Urban Renewal Plan for the Downtown Dubuque Urban Renewal District to be held on April 1, 2002 at 6:30 p.m. in the Carnegie-Stout Public Library Auditorium, 11th and Bluff Streets, Dubuque, Iowa 52001 and that said notice shall generally identify the area covered by the Amended and Restated Plan and the general scope of the Amended and Restated Plan and the activities planned for such areas. Section 5. That the City Clerk is further directed to send by ordinary mail a copy of said notice of public hearing to the Dubuque Community School District, the County Board of Supervisors and the Northeast Iowa Community College, as the affected taxing entities. PASSED, APPROVED and ADOPTED this 21st day of January, 2002. ATTEST Jeanne F. Schneider, City Clerk F:~USERS'~PmyhreWVPDOCS~UR~,DOWNTOWN~IEC RES02.DVVN.doc Ann E. Michalski, Mayor Pro-Tern RESOLUTION NO. -02 A RESOLUTION OF NECESSITY FINDING THAT THE EXPANSION OF THE DOWNTOWN DUBUQUE URBAN RENEWAL DISTRICT IS AN AREA MEETING THE DEFINITIONS OF BLIGHT AND ECONOMIC DEVELOPMENT AND THAT DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA. Whereas, the City Council of the City of Dubuque has determined that the further expansion of the Downtown Dubuque Urban Renewal District will provide redevelopment opportunities which will further the purposes and objectives of the Downtown Dubuque Urban Renewal Plan; and Whereas, the City Council has found that the proposed expansion area meets the definition of an economic development 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 following described area, which is proposed to be added to the Downtown Dubuque Urban Renewal District, is an economic development area as defined by Chapter 403 of the Iowa Code and is appropriate for an urban renewal project, to wit: Commencing as a point of reference at the intersection of the centerline of 9th Street with Locust Street, said point being the point of beginning: thence northwesterly along the centerline of Locust Street to the centerline of 14th Street; thence northeasterly along the centerline of 14th Street to the centerline of Central Avenue; thence southeasterly along the centerline of Central Avenue to the centerline of 10th Street; thence southwesterly along the northerly boundary of the existing Downtown Dubuque Urban Renewal District to the point of beginning, containing 30 acres more or less, all located in Section 25, Township 89 North, Range 2 East, 5th P.M., Dubuque County, Iowa and including any adjoining public right-of-way (hereinafter, the "Expansion Area"). Section 2. That the development of the Expansion Area 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 Downtown Dubuque Urban Renewal District, to forward said Plan to the City's Long Range Planning Commission for review and comment and to begin the consultation process required by law with affected taxing entities. Section 4. That the City Clerk is directed to publish notice of a public hearing on the adoption of an Amended and Restated Urban Renewal Plan for the Downtown Dubuque Urban Renewal District to be held on April 1, 2002 at 6:30 p.m. in the Carnegie-Stout Public Library Auditorium, 11th and Bluff Streets, Dubuque, Iowa 52001 and that said notice shall generally identify the area covered by the Amended and Restated Plan and the general scope of the Amended and Restated Plan and the activities planned for such areas. Section 5. That the City Clerk is further directed to send by ordinary mail a copy of said notice of public hearing to the Dubuque Community School District, the County Board of Supervisors and the Northeast Iowa Community College, as the affected taxing entities. PASSED, APPROVED and ADOPTED this 21st day of January, 2002. ATTEST: Terrance M. Duggan, Mayor Jeanne F. Schneider, City Clerk F:\USERS\Pmyh re\WPDOCS\UR~OWNTOWN'~NECRES02.DWN.doc