Dubuque Industrial Center Economic Development District - Urban Renewal Copyright 2014
City of Dubuque Items to be set for Public Hearing # 3.
ITEM TITLE: Dubuque Industrial Center Economic Development District - Urban
Renewal plan Amendment
SUMMARY: City Manager recommending approval of a Resolution of Necessity that
begins the process of amending the Urban Renewal Plan for the Dubuque
Industrial Center Economic Development District and set a public hearing
on the proposed amendment for September 8, 2015.
RESOLUTION of Necessity finding that certain areas adjacent to the
established Dubuque Industrial Center Economic Development District
meet the definition of an Economic Development Area under the Urban
Renewal Law, that development of said area is necessary in the interest of
the residents of the City of Dubuque, Iowa, and setting dates of hearing
and consultation on a proposed amendment to the Amended And
Restated Urban Renewal Plan for said District
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public
Hearing for 9/8/15
ATTACHMENTS:
Description Type
❑ Urban Renewal Plan Amendment for Dubuque Industrial Center-MVM City Manager Memo
Memo
❑ Staff Memo Staff Memo
❑ Attachment A-UR Plan map Supporting Documentation
❑ Resolution of Necessity-DICW Resolutions
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: Resolution of Necessity for the Amendment of the Dubuque Industrial
Center Economic Development District Urban Renewal Plan
DATE: July 15, 2015
Economic Development Director Maurice Jones recommends the City Council approve
a Resolution of Necessity that begins the process of amending the Urban Renewal Plan
for the Dubuque Industrial Center Economic Development District and set a public
hearing on the proposed amendment for September 8, 2015. This amendment would
add 161 acres of land the City will be acquiring just north and northwest of the existing
industrial parks.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB3 E1 ' Office(563)589-4393
TTY(563)690-6678
http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Resolution of Necessity for the Amendment of the Dubuque Industrial
Center Economic Development District Urban Renewal Plan
DATE: July 10, 2015
INTRODUCTION
This memorandum presents for City Council consideration a Resolution of Necessity
that finds that: 1) an Amended and Restated Urban Renewal Plan for the Dubuque
Industrial Center Economic Development District is both necessary and appropriate;
and 2) sets a public hearing on the proposed amendment for September 8, 2015.
The proposed amendment would expand the District to include an area known as the
McFadden Farm and referred to as the new Subarea G.
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 in order to promote
economic development activities. The original area included the Dubuque Industrial
Center (known as Subarea A) and has been expanded several times over the past
several decades to include the Dubuque Industrial Center West, the County Farm, the
Bergfeld Farm, the North Siegert Farm, the Rail Site, the South Siegert Farm, and the
Graf Farm (known as Subareas B, C, D, E, and F, respectively).
In 1995, the Mayor and City Council adopted the first Comprehensive Plan for the City
of Dubuque since the previously adopted 1936 Comprehensive Plan. This was the
culmination of five years of work by the newly formed Long Range Planning
Commission chaired by Dave Rusk. The process began in 1990 with the Vision 2000
document, adopted in 1993, and culminated in the adoption of the 1995 Comprehensive
Plan. Thousands of citizens participated in this process. The 1995 Comprehensive
Plan was updated in 2002, 2008, and 2012.The need to expand and amend the
Dubuque Industrial Center Economic Development District has risen from the desire to
support expansion of business in the years to come, as many of the current parcels
have been developed.
DISCUSSION
This proposed expansion and amendment of the Dubuque Industrial Center Economic
Development District would result in the addition of approximately 161 acres of land that
currently lies just to the northwest of Subarea A. Pursuant to House File 2460, enacted
in 2012, the amended plan also will describe the specific use of tax increment funds,
reflecting the utilization of tax rebates, the creation of public infrastructure, or other
planned expenditures, planned in the District.
The Dubuque Comprehensive Plan includes the following:
"LAND USE & URBAN DESIGN GOALS
Goal Three: To provide sufficient opportunities for industrial development sites within
the community.
Objectives:
3.1 promote the retention and expansion of existing, and attraction of new, industrial
development opportunities in suitable locations...
3.3 encourage annexation of land suitable for industrial usage if necessary
ECONOMIC DEVELOPMENT GOALS
Goal One: To reduce unemployment, achieve economic stability, and increase the
standard of living for all citizens.
Objective
1 .2 promote diversification of the commercial/industrial base.
Goal Twelve: To promote the provision of an adequate supply of vacant, development-
ready land for commercial and industrial use.
Objectives
12.3 evaluate potential commercial and industrial development sites, based on the
city's future land use map
12.6 consider annexing growth areas, as necessary and as possible, to ensure
adequate supply of developable land and to control development on the city's fringe."
Acquisition of additional industrial park land is consistent with the Mayor and City
Council 5-year goals, which includes Planned and Managed Growth, and Sustainability.
One of the three pillars of Sustainability is Economic Prosperity. Included in the twelve
principles of Sustainability are Support for Community Design and the Regional
Economy.
Included by the City Council in the Management Agenda is industrial park expansion,
including acquisition and infrastructure. This acquisition will add approximately 161
acres to the industrial park.
The City of Dubuque has had tremendous success with economic development,
receiving multiple national recognitions for job creation. This is in no small part due to
the City's decision in the mid 1990's to acquire and develop over 900 acres of property
to provide a 20-year supply of industrial park land.
These 900 acres are now called Dubuque Technology Park, Dubuque Industrial Center
West, Dubuque Industrial Center North and Dubuque Industrial Center South. It should
not be forgotten that preceding the City's efforts was the development in the 1980's of
the Dubuque Industrial Center by Dubuque Initiatives. These industrial parks now are
home to 49 businesses employing over 4,400 people. These businesses have
constructed 4 million square feet of buildings and invested well over $200 million.
None of this would have been possible without the City's partnerships with Dubuque
Initiatives, the Greater Dubuque Development Corporation, Dubuque County (who
donated the County Farm to this effort and supports the use of Tax Increment Financing
to make these projects work), the Dubuque Community School District and Northeast
Iowa Community College, who have also supported the use of Tax Increment
Financing, federal and state funding, the many property owners who have cooperated in
selling their land, and, most importantly, the businesses who have chosen to make
Dubuque their home.
In December 2014, there were 61 ,700 people working in Dubuque County with a 3.9%
unemployment rate. This is 1 ,800 net new jobs over December 2013. Compare this to
the lows of the 1980's, over 24% unemployment, 38,600 people working in Dubuque
County. With just 3% of Iowa's population, from 2009-2013, Dubuque County achieved
8.1 % of the State's job growth.
The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in
2013, an increase of 30% that exceeded inflation by 17.5%.
Between 2000 and 2013, Dubuque's per capita income rose by 40%, exceeding the
national growth by 3.5%.
In 2000, Dubuque's Median Household Income (MHI) ($39,582) was 6% below the
national MHI ($41 ,994). In 2012, Dubuque's MHI ($50,885) was just 1 % below the
national MHI ($51 ,017).
Between 2008 and 2013, the average home price in Dubuque grew by 9.71 %, more
than Sioux City (8.83%), Waterloo (6.28%), Iowa City (5.32%), the Quad Cities (3.93%),
Cedar Rapids (1 .33%), Council Bluffs (1 .02%), Des MoinesM/est Des Moines (-0.50%),
Chicago (-18.56%), Daytona Beach (-24.08%) and the national average (-0.15%)
The City will be acquiring 161 acres of land, just north and northwest of the existing
industrial parks. Once developed, this will provide approximately 116 acres of buildable
land, depending on access and grading plans. The City is greatly appreciative of the
cooperation of the McFadden family in this acquisition process.
The purchase price is $3,470,740 ($17,000 per acre for 124.72 acres, and $37,000 per
acre for 36.50 acres). The estimated site development costs are $7.9 million. The total
costs per developable acre when fully developed is estimated at $120,000. This
compares favorably with the asking price of$120,000 per acre for current industrial park
property. The City expects to issue debt using Dubuque Industrial Center Urban
Renewal District Tax Increment Financing revenues to fund this purchase.
The attached Resolution directs staff to prepare an Amended and Restated Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District,
describing the area to be added and setting forth the urban renewal projects that are
currently expected to be undertaken in the District. Additionally, staff is required to hold
a consultation process, required by law, with the affected taxing entities concerning the
proposed amendment, and to the extent the amendment includes the use of tax
increment revenues for a public building, provide an analysis of alternative development
and funding options for such public buildings.
A City Council public hearing on the Amended and Restated Urban Renewal Plan will
be scheduled for September 8, 2015. The public notice will be published four to twenty
days before the meeting to allow for the appropriate publication requirements. This will
allow time for preparation of the Plan and the consultation process with the taxing
entities.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached Resolution of Necessity that begins
the process of amending the Urban Renewal Plan for the Dubuque Industrial Center
Economic Development District.
The amendment will provide the continued use of tools that will encourage reinvestment
and redevelopment activities throughout the District and will support the revitalization
within the area.
Attachment
r Es0 =:�
tt chmen
R.WNEE LN
I1My P —WOLFF PO
NIOWOOT .. F ( NO GE IT FMRASSYQ
Dubu ue I u frq I Cen ` Econ c beveb r n '
q �� r � ..
` PEN NSYLVANIAAVE "
t _ NN WESTMPRN OR I CO,A OF
/ / \, ��.+�1MIOOLF ---
_
1
uz
N WESTRROOM tl
r d� _ n r �
y COMMFRCF YARN FUTURE)IT
1
•.`�.+_ - � � CHAVENELLEPO � � �>� ��
r { �
_ OESt
O
Y.� OW
Subarea A
Subarea B
1L J J
Subarea C
.L
+
Subarea D
r s
Subarea E
a Sub
area F
C/ I /
`
i COTfINGHPM RO J ,.....
Subarea G
l _( Dubuque City Li
HtEronomicD p flUrn RenewalD9riRslDubuque lntlush al Cent h20151M Fatltlen Atltlt Subarea GlAPyy��h. to
rnsrzol5 . i.--may _ `+-.1/
RESOLUTION NO. 254-15
A RESOLUTION OF NECESSITY FINDING THAT CERTAIN AREAS ADJACENT TO
THE ESTABLISHED DUBUQUE INDUSTRIAL CENTER ECONOMIC
DEVELOPMENT DISTRICT MEET THE DEFINITION OF AN ECONOMIC
DEVELOPMENT AREA UNDER THE URBAN RENEWAL LAW, THAT
DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE
RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AND SETTING DATES OF
HEARING AND CONSULTATION ON A PROPOSED AMENDMENT TO THE
AMENDED AND RESTATED URBAN RENEWAL PLAN FOR SAID DISTRICT
Whereas, the City Council of the City of Dubuque has heretofore, by Resolution 197-
15, adopted June 1st, 2015, approved the Amended and Restated Urban Renewal Plan
for the Dubuque Industrial Center Economic Development District (the "District") in order
to provide redevelopment opportunities which will further economic development
purposes and objectives as described in the Urban Renewal Plan; and
Whereas, the City Council has found that the area adjacent to the District shown as
Subarea G in Exhibit A attached hereto meets the definition of an economic
development area as found in Chapter 403 of the Iowa Code and should be included
therein; and
Whereas, Subarea G is located within the corporate limits of the City of Dubuque;
and
Whereas, Iowa Code Chapter 403 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 Subarea G described in Exhibit A attached hereto is an economic
development area as defined by Iowa Code Chapter 403 and is appropriate for an
urban renewal project.
Section 2. That the City Manager is authorized and directed to prepare an
amendment to the Urban Renewal Plan for the Dubuque Industrial Center Economic
Development District, such amendment to include Subarea G within the District and
such other modifications to the property contained within the District as may be
appropriate, and setting forth the urban renewal projects that are currently expected to
be undertaken in the District.
Section 3. That the City Manager is further authorized to determine an appropriate
date for and conduct the consultation process required by law with affected taxing
entities concerning the proposed amendment.
Section 4. That the City Council hold a public hearing on the adoption of the
proposed Amended and Restated Urban Renewal Plan for the Dubuque Industrial
Center Economic Development District on September 8th, 2015 at 6:30p.m. in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa 52001. The notice of
said hearing shall generally identify the area to be covered by the Amended and
Restated Urban Renewal Plan and the scope of the urban renewal project activities
planned for such area, and said notice shall be published and available to the public not
less than four days nor more than twenty days before the date of said meeting. A copy
of the notice of public hearing shall be sent by ordinary mail to the affected taxing
entities.
Section 5. That the City Clerk is further directed to send by ordinary mail a copy of
said Amended and Restated Urban Renewal Plan, the notice of public hearing, and, to
the extent the amendment includes the use of tax increment revenues for a public
building, an analysis of alternative development and funding options for such public
buildings, to the Dubuque Community School District and the County Board of
Supervisors, as the affected taxing entities.
PASSED, APPROVED and ADOPTED this 20th day of July, 201
ATTEST:
Kevi S. Firnstahl, City`` Jerk
Roy D. Buol, Mayor