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Kunkel & Associates, Inc. Urban Revitalization AreaCopyright 2014 City of Dubuque Consent Items # 16. ITEM TITLE: Kunkel & Associates, Inc. Urban Revitalization Area SUMMARY: City Manager recommending approval of a Resolution of Finding for the Kunkel & Associates property in the Dubuque Technology Park. RESOLUTION Urban Revitalization Resolution of Finding that the Rehabilitation, Conservation, Redevelopment, Economic Development, or a combination thereof of Lot 6 Block 2 of Dubuque Technology Park in the City of Dubuque, Iowa is necessary in the interest of public health, safety, or welfare of the residents of the City SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Kunkel & Associates Expansion -MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Resolution of Necessity Kunkel Resolutions THE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque band AI -America City r 2007 • 2012 • 2013 SUBJECT: Expansion of Kunkel & Associates, Inc. at the Dubuque Technology Park, Urban Revitalization Tax Abatement for the Company DATE: October 15, 2014 Kunkel & Associates, Inc. is proposing a 10,000 square foot expansion to its current building and plans to create 18 full time jobs within 3 years. On October 6, 2014, the City Council approved an application for State of Iowa Assistance on behalf of the company. The proposed expansion is subject to approval of State and local incentives. The City is not able to offer Tax Increment Financing (TIF) rebate of taxes for the proposed expansion because the life of the Urban Renewal TIF rebate authority in the Dubuque Technology Park will soon expire. However, the City may offer the company a partial 10 year tax exemption under a different section of the Iowa Code (Chapter 404) commonly called "Urban Revitalization." In order to provide this partial tax abatement program to the company, the first step in the process is the approval of a "Resolution of Finding" that the property meets the requirements for designation required by Chapter 404. Economic Development Director Maurice Jones recommends the City Council approve a Resolution of Finding for the Kunkel & Associates property. I concur with the recommendation and respectfully request Mayor and City Council approval. bd-144 , 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 katili 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 Milligen, City Manager FROM: Maurice Jones Economic Development Director SUBJECT: Expansion of Kunkel & Associates, Inc. at the Dubuque Technology Park, Urban Revitalization Tax Abatement for the company DATE: October 14, 2014 Introduction This memorandum presents for City Council action an Urban Revitalization Resolution of Finding for Kunkel and Associates. Background Kunkel & Associates, Inc. (commercial insurance brokerage and consulting firm), is located in the Dubuque Technology Park. In March 2006, Kunkel & Associates, Inc. relocated from Mineral Point Wisconsin to Dubuque. The company built a new facility in the Dubuque Technology Park and in three (3) years created and retained twenty- four (24) full-time jobs. Current employment is forty-six (46). The company is proposing a ten thousand square foot (10,000) expansion to its current building. The Company plans to create eighteen (18) full time jobs within three years. The proposed expansion is subject to approval of State and local incentives. On October 6, 2014, the City Council approved an application for State of Iowa Assistance on behalf of the company. Discussion The City's financial participation in the expansion in 2006 was a ten year Tax Increment Financing (TIF) rebate of property taxes. The City is no longer able to offer the same TIF rebate of taxes for the proposed expansion because the life of the Urban Renewal TIF rebate authority in the Dubuque Technology Park will soon expire. However, the City may offer the company a partial ten year tax exemption under a different section of the Iowa Code (Chapter 404) commonly called "Urban Revitalization." In order to provide this partial tax abatement program to the company, the first step in the process is the approval of a "Resolution of Finding" that the property meets the requirements for designation as required by Chapter 404. If this resolution is approved, Service People Integrity Responsibility Innovation Teamwork an Urban Revitalization Plan will be prepared for City Council review/approval after a public hearing has been held on the Plan. RECOMMENDATION/ACTION STEP I recommend that the City Council adopt the attached Resolution of Finding for the Kunkel and Associates property, the first step in process required under Chapter 404. Service People Integrity Responsibility Innovation Teamwork Prepared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 RESOLUTION NO. 327-14 URBAN REVITALIZATION RESOLUTION OF FINDING THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, ECONOMIC DEVELOPMENT, OR A COMBINATION THEREOF OF LOT 6. BLOCK 2 OF DUBUQUE TECHNOLOGY PARK IN THE CITY OF DUBUQUE, IOWA IS NECESSARY IN THE INTEREST OF PUBLIC HEALTH, SAFETY, OR WELFARE OF THE RESIDENTS OF THE CITY WHEREAS, as a preliminary step to exercising the authority to approve an area for "urban revitalization" conferred upon Iowa municipalities by Chapter 404 of the Code of Iowa, a municipality must adopt a resolution finding that the rehabilitation, conservation, redevelopment, economic development, or a combination thereof of the area is necessary in the interest of public health, safety, or welfare of the residents of the city, and WHEREAS, Lot 6 Block 2 of Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof (the Area) is the location of Kunkel & Associates, Inc. (the Company), and WHEREAS, the Area is located in an Urban Renewal Area and the Company is proposing an economic development expansion on the property; and Whereas, the City Council finds that the continued economic development the Area is necessary in the interest of the welfare of the residents of the City, and the property substantially meets the criteria for Urban Revitalization according to Section 404.1 of the Code of Iowa, 2014. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Lot 6 Block 2 of Dubuque Technology Park in the City of Dubuque, Iowa is appropriate as an economic development area as defined in Section 403.17 of the Code of Iowa, 2014, and is hereby designated the Kunkel & Associates Urban Revitalization Area. Section 2. The City Manager is hereby directed to prepare a proposed Urban Revitalization Plan for the Kunkel & Associates Urban Revitalization Area in conformance Chapter 404 of the Iowa Code, 2014 for review and approval by the City. Council. Passed and approved this 20th day of October% 2014. Attest: Kevin Firnstahl, City Roy D. B i I, Mayor