Kunkel & Associates, Inc. - Urban Revitalization Area Plan Copyright 2014
City of Dubuque Items to be set for Public Hearing # 1.
ITEM TITLE: Kunkel & Associates, Inc. - Urban Revitalization Area Plan
SUMMARY: City Manager recommending that a public hearing be set for December 15,
2014, regarding the proposed Urban Revitalization Plan for the Kunkel &
Associates, Inc. Urban Revitalization Area.
RESOLUTION Fixing the date for a public hearing on the matter of the
adoption of a proposed Urban Revitalization Plan for the Kunkel &
Associates Urban Revitalization Area
SUGGESTED DISPOSITION: Suggested Disposition Receive and File; Adopt Resolution(s), Set Public
Hearing for 12/15/14
ATTACHMENTS:
Description Type
❑ Expansion of Kunkel&Associates Inc-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Resolution and Notice Resolutions
❑ Urban Revitalization Plan Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Expansion of Kunkel & Associates, Inc., at the Dubuque Technology Park
DATE: October 28, 2014
Economic Development Director Maurice Jones is recommending City Council adopt
the proposed Urban Revitalization Plan for the Kunkel &Associates, Inc. Urban
Revitalization Area by a resolution to set the public hearing for December 15, 2014.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCity Dubuque,Iowa 52001-4864
DUB346&E1 ' Office(563)589-4393
TTY(563)690-6678
http://www.cityofdubuque.org
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones Economic Development Director
SUBJECT: Expansion of Kunkel & Associates, Inc. at the Dubuque Technology Park
DATE: November 3, 2014
Introduction
This memorandum presents for City Council a Resolution approving an Urban
Revitalization Area Plan for Kunkel & Associates, Inc., who will be constructing a 101000
square foot office building. The attached resolution sets a public hearing on the
disposition of this property for Kunkel & Associates, Inc.
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.
Discussion
Kunkel & Associates, Inc. has proposed a ten thousand square foot (10,000) expansion
to its current building which will be primarly use for office space. The Company plans to
create 18 full-time jobs within three years and retain the jobs for at least two years.
A 10 year partial tax abatement will be offered to assist the company with their
expansion base on the actual value added by the improvements. The abatement is for
a period of 10 years. Normally, the City would offer a 10 year Tax Increment Financing
property tax rebate for a project like this but the TIF rebate component of this part of the
Urban Renewal District expires in 2019, so that is not an option. This is the first time the
City has used the state property tax abatement statue in a project like this.
Service People Integrity Responsibility Innovation Teamwork
The amount of the partial exemption is equal to a percent of the actual value added by
the improvements, determined as follows:
A. For the first year, eighty percent (80%).
B. For the second year, seventy percent (70%).
C. For the third year, sixty percent (60%).
D. For the fourth year, fifty percent (50%).
E. For the fifth year, forty percent (40%).
F. For the sixth year, forty percent (40%).
G. For the seventh year, thirty percent (30%).
H. For the eighth year, thirty percent (30%).
I. For the ninth year, twenty percent (20%).
J. For the tenth year, twenty percent (20%).
RECOMMENDATION/ACTION STEP
I recommend that the City Council set for public hearing the disposition of the Dubuque
Technology Park property to Kunkel & Associates, Inc. for the purpose of constructing a
10,000 sq. ft. office building. This action supports the Council's objectives to assist
business expansion and to create eighteen (18) new jobs.
Service People Integrity Responsibility Innovation Teamwork
RESOLUTION NO. 342-14
FIXING THE DATE FOR A PUBLIC HEARING ON THE MATTER OF THE ADOPTION
OF A PROPOSED URBAN REVITALIZATION PLAN FOR THE KUNKEL &
ASSOCIATES URBAN REVITALIZATION AREA
WHEREAS, the City Council has determined that certain areas within the City of
Dubuque can be revitalized and the potential for development enhanced by the
adoption of an Urban Revitalization Plan (the "Plan") as authorized by Chapter 404,
Code of Iowa; and
WHEREAS, the City Council considers that the Plan encompasses an area which is
suitable for an economic development area as defined in Section 404.1, Code of Iowa,
as amended; and
WHEREAS, the adoption of the Plan for such urban revitalization will result in the
improvement of public health, safety and welfare of the residents of Dubuque; and
WHEREAS, before such Plan can be adopted, it is necessary that a public hearing
be held thereon and that due notice be given in accordance with the requirements of
Chapter 404, Code of Iowa.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY. OF
DUBUQUE IOWA:
Section 1. It is determined that it is in the best interests of the citizens of the City of
Dubuque to hold a public hearing on the matter of the adoption of the Urban
Revitalization Plan for the City of Dubuque described herein, on the day of December
15, 2014 at 6:30 p.m., in the City Council Chambers, Historic Federal Building, 350
West 6th Street, Dubuque, Iowa. The Clerk is hereby directed to publish notice of such
hearing at least once, not less than thirty days prior to the date of public hearing in the
manner provided in Section 362.3 of the Code of Iowa.
Section 2. The Clerk also shall, not less than thirty days prior to the public hearing,
cause notice of said hearing to be given by ordinary mail at the last known addresses of
the owners of record located within the designated area. The Clerk shall also send
notice by ordinary mail, addressed to the occupants of all City addresses located within
the proposed area, if such addresses be available. Copies of the Plan shall be made
available to the public through the office of the Clerk.
Section 3. The notice of the proposed hearing shall be in substantially the following
form:
NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE ADOPTION OF A PROPOSED
URBAN REVITALIZATION PLAN FOR THE KUNKEL & ASSOCIATES URBAN
REVITALIZATION AREA
Public notice is hereby given that the Council of the City of Dubuque, Iowa, will
hold a public hearing on December 15, 2014, at 6:30 p.m., in the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the City Council
proposes to take action on the adoption of an urban revitalization plan designated as
the Urban Revitalization Plan for the Kunkel & Associates Urban Revitalization Area
(the "Plan") under the authority of Chapter 404, Code of Iowa, as amended.
The property which comprises the revitalization area within which the Plan shall
be applicable is legally described as Lot 6, Block 2 Dubuque Technology Park in
the City of Dubuque, Iowa, according to the recorded plat thereof.
Chapter 404, Code of Iowa, as amended, and the Plan authorize the City to
make property tax exemptions for property on which improvements have been made.
Any persons interested may appear at said meeting of the City Council and
present evidence for or against the adoption of the Plan. The proposed Plan is on file in
the office of the City Clerk and available for public inspection or copying during regular
office hours.
This notice is given by order of the City Council of the City of Dubuque, Iowa.
Dated this day of , 2014.
Kevin Firnstahl, City Clerk of Dubuque, Iowa
(End of Notice)
Passed, approved and adopted this 3rd day of November, 2014.
10.11. -at jta
Karla A. Braig, Mayor Pro ,m
Attest:
Kunkel & Associates
Urban Revitalization Area Plan
November 3, 2014
Introduction:
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404 (the "Act"),
authorizes cities to designate one or more areas of the City as a revitalization area, with
the goal of increasing or stabilizing the local tax base by encouraging new construction
which might otherwise not occur. Improvements to qualified real estate with these
designated areas may then become eligible for an exemption from property taxes for a
specified numbers of years. To implement the provisions of the Act, the City must
prepare a revitalization plan for each designated area.
This document is the plan addressing the requirements of the Act for an area to be
known as the "Kunkel & Associates Urban Revitalization Area".
Area eligibility criteria:
The area described below meets the criteria for designation, specifically Section
404.1 (4) of the Code of Iowa, and constitutes "an area which is appropriate as an
economic development area" as defined in Section 403.17 of the Code of Iowa.
Objectives:
This Plan was prepared in conformance with Sections 404.1 and 404.2 of the Act for the
purpose of providing incentives and outlining procedures to enhance the potential for
commercial development in the Kunkel & Associates Urban Revitalization Area. The
primary objectives of this Plan are as follows:
• Encouraging new construction of commercial properties through the
abatement of taxes on the value of the improvements constructed.
• Improving economic conditions in the City by creating new commercial
development opportunities and taking steps to increase the tax base.
• Assisting businesses in the area in their expansion activities and creating new
jobs which will support the Council's objective to assist business expansion
and to create new jobs.
Legal description:
The property to be included in the Kunkel & Associates Urban Revitalization Area is
located in the Dubuque Technology Park, and is legally described as:
Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according
to the recorded plat thereof.
A map of the area boundaries is attached as Exhibit A.
Current assessed value:
The current assessed valuation of the Area, which is the property described above, as
of August 13, 2014, is $1 ,739,960, which is $1 ,343,860 for the improvements and
$396,100 for the land.
Property ownership:
The current property owner within the Area, as of August 13, 2014 is KBA Properties,
LLC, 401 Data Court Dubuque, IA 52003.
Existing and Proposed Land Use and Zoning Classification:
The existing and future land use for the property located within the Area is Office (OF).
City Services:
The City is not proposing to extend any City services to the Area that are not already
provided.
Relocation:
No relocation will occur due to the redevelopment of the Area. There are currently no
residents located in the Area and no resident or business will be forced to leave due to
potential redevelopment of the Area.
Eligible Improvements:
Eligible improvements are limited to new construction of commercial structures on
vacant land within the Area. All new construction, in order to be considered eligible,
must be completed in conformance with all applicable regulations of the City of
Dubuque. No abatement will be allowed unless a building permit has been issued by
the City with respect to the project for which the abatement is requested.
Actual value added by improvements means the actual value added as of the first year
for which the exemption was received according to tax assessment valuation
determined by the Dubuque County Assessor.
Exemptions:
Applicants for commercial tax abatements will select the following option:
Option 1 : All commercial and/or industrial real estate is eligible to receive a partial
exemption from taxation on the actual value added by the improvements. The
exemption is for a period of ten (10) years. The amount of the partial exemption is
equal to a percent of the actual value added by the improvements, determined as
follows:
A. For the first year, eighty percent (80%).
B. For the second year, seventy percent (70%).
C. For the third year, sixty percent (60%).
D. For the fourth year, fifty percent (50%).
E. For the fifth year, forty percent (40%).
F. For the sixth year, forty percent (40%).
G. For the seventh year, thirty percent (30%).
H. For the eighth year, thirty percent (30%).
I. For the ninth year, twenty percent (20%).
J. For the tenth year, twenty percent (20%).
Application Procedures:
An application must be filed for each new exemption claimed. The property owner must
apply to the City for an exemption by February 1 sc of the assessment year for which the
exemption is first claimed. The application must contain, but not be limited to, the
following information: a description of the proposed new construction project, its cost,
and the estimated or actual date of completion of the new construction. All applications
must be on the form of application provided by the City.
Approval of Applications:
Owners may submit a proposal for a new commercial construction project to the City
Council to receive prior approval for eligibility for a tax exemption on the project. The
City Council must give its prior approval if the project is in conformance with this Plan
for revitalization. However, if the proposal is not approved, the owner(s) may submit an
amended proposal for the City Council to approve or reject. Such prior approval will not
entitle the owner(s) to exemption from taxation until the new construction has been
completed and found to be qualified for the exemption.
For prior approval and non-prior approval applications, the City Council must approve
an application submitted for approval if:
The project, as determined by the City Council, is in conformance with this Plan;
The project is located within the Urban Revitalization Area;
The improvements were made during the time the Urban Revitalization Area was
so designated;
The project has obtained a building permit from the City; and
Any other legal requirement.
All approved applications must be forwarded by the City to the Dubuque City Assessor
by March 1 for review, and a final determination of eligibility by the Assessor, pursuant
to Section 404.5 of the Code of Iowa. The City Assessor must make a physical review
of all properties with approved applications. The City Assessor must determine the
increase in actual value for tax purposes due to the new construction and notify the
applicant of the determination, which may be appealed to the local board of review
pursuant to Section 441 .37 of the Code of Iowa. After the initial tax exemption is
granted, the City Assessor must continue to grant the tax exemption for the time period
specified on the approved application. The tax exemptions for the succeeding years will
be granted without the owner(s) having to file an application for succeeding years.
Other Sources of Revitalization Funds:
The City anticipates making application to the Iowa Economic Development Authority
for state financial assistance to assist Kunkel and Associates, Inc. in an expansion.
Revenue Bonds:
The City has no plans at the present time to issue revenue bonds for revitalization
projects within the Area.
Conclusion
The incentives provided within the Area are intended to assist Kunkel & Associates with
an expansion of the company's current facility beginning in 2015.
The company plans to create eighteen (18) full time jobs within three years. This will
support the City Council's objective to assist business expansion and to create new
jobs.
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