Dubuque Industrial Center Amendment_Siegert FarmTHE CITY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
October 26, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Removal of the North Siegert Farm and Rail Site from the Dubuque
Industrial Center Economic Development District
Economic Development Director Dave Heiar recommends that a public hearing be set
for January 7, 2008, on the removal of the North Siegert Farm and the Rail Site from the
Dubuque Industrial Center Economic Development District.
The Iowa Code places a limit of 20 years on the collection of TIF revenues from
economic development urban renewal areas created after January 1995. These two
areas that are proposed to be removed from the Dubuque Industrial Center Economic
Development District have not been developed as originally expected. This property
was originally acquired with Tax Increment Revenue. Iowa law allows the City Council
to amend an urban renewal plan and area at any time, and removing these properties
will not prevent the City from determining at a later date that all or portions of them
should again be part of an urban renewal area with their own 20-year time frame
allowed by Chapter 403 of the Iowa Code.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
L ; ~~
it
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THF., CITY OF
L~U~B E MEMORANDUM
Masferpic~c~e nn the Mississippi
November 9, 2007
TO: Michael Van Milligen, City Manager
~~
FROM: David J. Heiar, Economic Development Director F.,__ !~~
~,.
SUBJECT: Removal of the North Siegert Farm and Rail Site from the Dubuque
Industrial Center Economic Development District
Introduction
The purpose of this memorandum is to forward for City Council consideration a
resolution to set a public hearing on the removal of the North Siegert Farm and the Rail
Site from Subarea B of the Dubuque Industrial Center Urban Renewal District.
Background
The Dubuque Industrial Center Economic Development District was created on May 2,
1988. The District is an urban renewal area which allows the City of Dubuque to
capture tax increment revenue from improvements made in the District. The original
area included the Dubuque Industrial Center (known as Subarea A) and was expanded
in November 1997 to include the Dubuque Industrial Center West, the County Farm, the
Bergfeld Farm, and the North Siegert Farm (known as Subarea B).
Discussion
The North Siegert Farm area (as identified on the attached map) has not been improved
and was purchased using tax increment revenue from the district. The area has not
been developed with any increment from the district.
The Iowa Code places a limit of 20 years on the utilization of TIF revenues from
"economic development" urban renewal areas created after January 1995. As
mentioned, the North Siegert Farm was placed in the District when it was amended in
1997. Since TIF revenue has not been collected or utilized from this portion of the
District, I propose that the City remove the North Siegert Farm from the Urban Renewal
District. At some future date, the City Council could determine to put all or a portion of
the North Siegert Farm property back into the District, or into a new urban renewal area,
and give this new subarea its own 20-year period of tax increment collections to assist
in job creation and new development.
The green area on the attached map shows where the North Siegert Farm is located in
relation to the rest of the Urban Renewal District. The Urban Renewal area will now
only include Subarea A and B as shown on the attached map.
The Rail Site property is located on the southerly portion of Subarea B in the Urban
Renewal District. This site has not seen any development since being included in the
District but it has received grading improvements paid for by tax increment revenues
from other properties with in the Urban Renewal Area. This site is unique in that it is the
City's only rail site. Therefore, this property is generally only shown to developers that
have a specific need for rail service. Because of this specialized nature, this site is not
seen as property that will be developed in the near future. Removing the Rail Site
property from the Urban Renewal District will alleviate development pressure, more
closely reflect the City's current planning for this area of the City, and allow the City to
focus its planning and financial resources on the remaining portions of Subarea B.
Again, the removal of the Rail Site from Subarea B will not prevent the City Council from
later determining that all or a portion of it should be included in a new urban renewal
area or district.
The Long Range Planning Advisory Commission needs to review the proposal to
remove the two areas to determine if the action is in accordance with the
Comprehensive Plan. With City Council authorization, this proposal will go before them
at their December meeting.
Recommendation
I recommend approval of the attached Resolution setting a public hearing on the
removal of the North Siegert Farm and Rail Site from the Dubuque Industrial Center
Economic Development District.
Action Step
The Action Step for the City Council is to adopt the attached Resolution.
attachments
F:\USERS1Adejong\Urban Renewal\Dubuque Industrial Center UR District\2007.1 DIC Siegert Out\Memo Setting Public
Hearing.doc
Prepared Bv~ David Heiar ED Director City of Dubuque 50 W. 13t'' St. Dubuque, IA 52001 (563) 589-4393
Return To: David Heiar ED Director City of Dubuque 50 W. 13 St. Dubuque, IA 52001 (563) 589-4393
RESOLUTION NO. 556-07
SETTING A PUBLIC HEARING ON AN AMENDMENT TO THE AMENDED AND
RESTATED URBAN RENEWAL PLAN FOR THE DUBUQUE INDUSTRIAL CENTER
ECONOMIC DEVELOPMENT DISTRICT REMOVING CERTAIN REAL PROPERTY
FROM SAID DISTRICT
Whereas, the Dubuque Industrial Center Economic Development District ("District")
was created by the Dubuque City Council on May 2, 1988 and most recently amended and
restated on November 17, 1997; and
Whereas, the District was created in accordance with Chapter 403 of the Code of
Iowa; and
Whereas, City staff has proposed that the following described property be
considered for removal from the District:
Lot 1-1 NW 1/4-NE 1/4; Lot 1 E 1/4 NE 1/4-NW 1/4; W 3/4 NE
1/4-NW 1/4; Lot 2-1 SE 1/4-NW 1/4; Lot 1-1 SE 1/4-NW 1/4; and
the SW 1/4-NE'/4 all in Section 30, Township 89 North, Range 2
East, 5th Principal Meridian in the City of Dubuque, Dubuque
County, Iowa (hereinafter referred to as "North Siegert Farm).
And
Lot 4 of Dubuque Industrial Center West 5th Addition, and Lot B
of Dubuque Industrial Center West 5th Addition in the City of
Dubuque, Iowa (hereinafter referred to as "Rail Site"); and
Whereas, the North Siegert Farm property was included in Subarea B of the
District in 1997, but has not been developed subsequent to its inclusion in the District,
and the City purchased the property through the use of tax increment financing
generated by other properties in the District; and
Whereas, the City has collected no tax increment revenue from the North Siegert
Farm property; and
Whereas, the Rail Site property also was included in Subarea B of the District in
1997, following which certain grading improvements were undertaken through the use
of tax increment financing generated by other properties in the District; and
Whereas, the City has collected no tax increment revenue from the Rail Site
property and has no immediate plans to sell the site, and City staff expects to focus
future development on other areas of the District; and
Whereas, it is in the best interests of the City and the District to remove the
North Siegert Farm and Rail Site from the District; and
Whereas, Chapter 403 of the Code of Iowa authorizes cities to modify or amend
an urban renewal plan at any time, and further provides that the notification and
consultation procedures ordinarily required under Section 403.5 apply only when the
amendment provides for refunding bonds or refinancing resulting in an increase in debt
service or provides for the issuance of bonds or other indebtedness to be funded
primarily by tax increment revenues.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Manager is authorized and directed to prepare an
amendment to the Amended and Restated Urban Renewal Plan for the Dubuque
Industrial Center Economic Development District, the purpose of which would be to
remove the above-described property from the urban renewal area of the District, to
forward said amendment 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 2. That the City Clerk is directed to publish notice of a public hearing on
the adoption of an amendment to the Amended and Restated Urban Renewal Plan for
the Dubuque Industrial Center Economic Development District to be held on January
7tn 2008 at 6:30 p.m. in the Historic Federal Building, 350 West 6tn Street, Dubuque,
Iowa 52001 and that said notice shall generally identify the areas covered by the
Amended and Restated Plan, the areas proposed to be removed therefrom, and the
general scope of the urban renewal activities planned for the remaining urban renewal
areas, and that said notice shall be published and available to the public on December
21, 2007.
Passed, approved and adopted this 19th day of November, 2007.
Attest
Kevin S. Firnstahl, Assistant City Clerk
Patricia A. Cline, Mayor Pro Tem
F:\USERS\Adejong\Urban Renewal\Dubuque Industrial Center UR District\2007.1 DIC Siegert Out\Reso Setting Public Hearing.doc