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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
DATE: December 13, 2007
Economic Development Director David Heiar is recommending adoption of an
ordinance amending the Tax Increment Financing District for the Greater Downtown
Urban Renewal District. With the approval of the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal District, adding the
Warehouse District and property along South Main Street, the proposed Tax Increment
Ordinance is needed to establish the use of Tax Increment Financing to existing and
expanded areas of the district.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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TO: Michael Van Milligen, City Manager
December 10, 2007
FROM: David J. Heiar, Economic Development Director ~ `~
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 was reviewed by the City's bond counsel and is
attached to this memo.
Background
On December 17, 2007, the City Council will act on approving an amended and
restated Urban Renewal Plan for the Greater Downtown Urban Renewal District which
added tow subareas to the Urban Renewal District (Warehouse and South Main
Subareas). 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 eight
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 eight 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, warehouse, and riverfront areas.
Action Step
The action step is for the City Council to approve the amended tax increment ordinance
attached hereto.
attachment
F:\USERSWdejong\Urban Renewal\Greater Downtown UR District\2007.2 Amendment\TIF Ordinance\20071210TIF ord memo.doc
ORDINANCE NO. 63-07
AN ORDINANCE AMENDING ORDINANCE NOS. 20-07, 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
1O1rt' A, BY AND FOR THE BENEFIT OF THE STATE OF iOiriiA, C{TY 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 amendea by Ordinance Nos. 23-94, 36-94, 67-97, and 28-02 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 Dubuque Urban Renewal District and the
original Ice Harbor Urban Renewal District and their respective Subareas have been
combined into a single urban renewal area, under the terms of an Urban Renewal Plan
for the Greater Downtown Urban Renewal District, pursuant to Resolution No. 170-04
adopted on April 19, 2004; and
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, the Urban Renewal Plan for the Greater Downtown Urban Renewal
District was further amended and restated as an Amended and Restated Urban
Renewal Plan, pursuant to Resolution No. approved on December 17, 2007, for
the purpose of expanding the Greater Downtown Urban Renewal District to include
additional areas described as the Warehouse Subarea and the South Main Subarea,
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
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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:
Ordinance No. 20-07 (Ordinance No. 35-04, amending Ordinance No. 30-82, as
amended by Ordinance Nos. 23-94, 36-94, 67-97, and 26-02, and Ordinance No. 66-89,
as amended by Ordinance No. 97-00) is hereby amended to read as follows:
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-
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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.
(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.
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(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:
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) Warehouse Subarea 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. on December 17, 2007,
which Warehouse Subarea includes the lots and parcels located within the area legally
described as follows:
Commencing as a point of reference at the intersection of the centerlines of 11th
Street and Central Avenue in the City of Dubuque, Dubuque County, Iowa, said
point being the point of beginning; thence northeasterly along the centerline of
11th Street to a point of intersection with the centerline of White Street; thence
northwesterly along the centerline of White Street to a point of intersection with
the centerline of 12th Street; thence northeasterly along the centerline of 12th
Street and extension thereof to a point of intersection with the centerline of US
Highways 151 and 61; thence southwesterly along the centerline of US Highways
151 and 61 to a point of intersection with the centerline of 4th Street extended;
thence southwesterly along the centerline of 4th Street and extension thereof to a
point of intersection with the centerline of Central Avenue; thence northwesterly
along the centerline of Central Avenue to a point of intersection with the
centerline of 9th Street; thence southwesterly along the centerline of 9th Street to
a point of intersection with the westerly line of City Lot 259 extended southerly;
thence northwesterly along the westerly line of City Lot 259, and Lots 1 and 2 of
the Subdivision of the South '/2 of City Lot 261 and City Lot 260 to the southwest
corner of the N '/ of City Lot 261; thence northeasterly along the southerly line of
the N '/2 of City Lot 261 and extension thereof to a point of intersection with the
centerline of Central Avenue; thence northwesterly along the centerline of
Central Avenue to a point of intersection of 11th Street also being point of
beginning; and including any adjoining public right-of-way.
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(i) South Main Subarea 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. on December 17, 2007,
which South Main Subarea includes the lots and parcels located within the area legally
described as follows:
Commencing as a point of reference at a point of intersection of the centerline of
Locust Street with the Locust Street Connector in the City of Dubuque, Dubuque
County, Iowa, said point being the point of beginning; thence northeasterly along
the centerline of the Locust Street Connector to a point of intersection with the
centerline of US Highways 52, 61, and 151; thence southeasterly along the
centerline of US Highways 52, 61, and 151 to a point of intersection with the
centerline of the eastern section of Jones Street extended southwesterly; thence
southwesterly along said extension of the centerline of the eastern section of
Jones Street to a point of intersection with the centerline of Main Street; thence
northwesterly along the centerline of Main Street to a point of intersection with
the centerline of Jones Street; thence northwesterly along the centerline of Jones
Street to a point of intersection with the easterly line of Lot 2D of vacated Shields
Street extended northerly; thence southeasterly along the easterly line of Lot 2D
of vacated Shields Street to the southeasterly corner of said Lot 2D; thence
southwesterly along the southerly lines of Lot A and Lot 2D of vacated Shields
Street and Lot 1 of 2 of City Lot 543 extended westerly to a point of intersection
with the centerline of Locust Street; thence northeasterly along the centerline of
Locust Street to a point of intersection with the centerline of the Second Street
Connector, also being the point of beginning; and including any adjoining public
right-of-way.
Q) Amended Project 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, the Ice
Harbor Subarea C, the Warehouse Subarea and the South Main Subarea, each as
described in this Section.
(k) Urban Renewal Plan shall mean the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal District, approved by
Resolution No. -07 on December 17, 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.
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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
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 in the
same manner using the total assessed value shown on the assessment roll as of
January 1, 2006, being the assessment roll as of January 1 of the calendar year
preceding the effective date of Ordinance No. 20-07.
As to the Warehouse 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,
2006, being the first day of the calendar year preceding the effective date of this
Ordinance.
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As to the South 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,
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.
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. 20-07, 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 the Warehouse Subarea and South Main Subarea. 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.
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Section 8: This Ordinance shall be in effect after its final passage, approval
and publication as provided by law.
PASSED AND APPROVED this 17th day of December, 2007.
Roy D. Buol
Mayor
ATTEST:
Jeanne F. Schneider
City Clerk
Read first time: 12/17/07
Read second time: 12/17/07
Read third time: 12/17/07
PASSED AND APPROVED: 12/17/07
PUBLISHED: 12/21/07
F:\USERSWdejong\Urban Renewal\Greater Downtown UR District\2007.2 Amendment\TIF
Ordinance\20071217 TIF Ordinance.doc
ATTEST:
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