Marquette Hall Urban Revitalization Plan_Initiate Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Marquette Hall Urban Revitalization Plan
SUMMARY: City Manager recommending approval of a resolution
directing the Marquette Hall Urban Revitalization Plan
(Former Sacred Elementary Heart School) be set for public
hearing on March 7, 2016.
RESOLUTION Finding that the designation of the
Marquette Hall Urban Revitalization Plan is necessary in the
interest of public health, safety, and welfare of the residents
of the City of Dubuque, Iowa
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for 3/7/16
ATTACHMENTS:
Description Type
Marquette Hall Urban Revitalization Plan-MVM Memo City Manager Memo
Staff Memo Staff Memo
Marquette Hall Urban Revitalization Plan Supporting Documentation
Resolution 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: Request for Public Hearing for Marquette Hall Urban Revitalization Area
District
DATE: January 12, 2016
Housing and Community Development Department Director Alvin Nash requests the
City Council approve a resolution directing the Marquette Hall Urban Revitalization Plan
be set for public hearing on March 7, 2016.
1 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
Alvin Nash, Housing & Community Development Department Director
THE CITY OF Dubuque
AII-Ame1 rica City
DUBgkE r
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
DATE: January 12, 2016
RE: Request for Public Hearing for Marquette Hall Urban Revitalization Area
District
Introduction
This memorandum presents for City Council a petition for Urban Revitalization Area
Designation from Cohen-Esrey Affordable Partners (Developers). The memorandum
recommends the City Council review and approve the attached resolution to establish
Marquette Hall as a property that meets the requirements for designation as required by
Chapter 404 of the Iowa Code.
Background
Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act)
authorizes cities to designate areas as urban revitalization areas. Improvements to
qualified real estate within these designated areas may receive a total or partial
exemption from property taxes for a specified number of years. The exemptions are
intended to stimulate private investment by reducing tax increases that usually
accompany property improvements. This additional private investment provides a
long-term increase or stabilization in the area's tax base, enhances the visibility of
revitalization areas and/or supports important city objectives such as historic
preservation, economic development and affordable housing development.
In order to implement the provisions of Chapter 404, the City determine the area is
eligible for exemption, prepare a revitalization plan for each designated area, and hold
at least one public hearing after proper notice. The law mandates specific criteria and
procedures must be followed.
Discussion
The Developers propose to redevelop the former Sacred Heart Elementary School,
located at 2222 Queen Street, into 28 historic and affordable senior apartments.
Cohen-Esrey Affordable Partners development will preserve and restore the historic
Marquette Hall, built in 1915. The restored structure will provide affordable housing for
seniors in the North End Neighborhood of Dubuque. The project utilizes a number of
funding sources for redevelopment including private funding, State and Federal
Historic Tax Credits, Low Income Housing Tax Credits, and requests support from the
City of Dubuque through the Urban Revitalization Tax Exemption and by selling a city
owned alley for $1 .00, a discount off market rate. Contingent upon an award of Low
Income Housing Tax Credits, the City of Dubuque will contribute $65,000 in Downtown
Rehabilitation Grants and Urban Housing Incentive funds, consistent with incentives
provided to other downtown projects.
The area is established under 404.1 (3) and is defined as an area in which there is a
predominance of buildings or improvements which by reason of age, history,
architecture or significance should be preserved or restored to productive use. The
basis for an exemption under 404.3(4) permits a one hundred percent exemption from
taxation on the actual value added by improvements for qualified real estate assessed
as residential property or assessed as commercial property, for a period of ten years.
Cohen-Esrey Affordable Partners has agreed to this exemption schedule.
This assistance is very important to the success of the project. The application for
state tax credits is competitive. A developer receives points for city financial
assistance, with maximum points provided for assistance equaling 7% of project costs.
Chapter 404 provides for a public comment period prior to the adoption of an urban
revitalization plan. Additionally, the City's Code of Ordinances requires comment by the
Long Range Planning Commission on any urban revitalization plan. Based upon these
requirements, the Council is requested to set a public hearing for March 7, 2011 that will
provide a 30 day comment period on the proposed plan. The property owners will be
notified. The Long Range Planning Commission will review the plan at their January 20,
2016 meeting.
Budgetary Impact
The property value, based upon 2015 Beacon data, is $39,560 for land and $892,380
for dwelling for a total taxable value of$931 ,940. Dubuque City Assessor Rick
Engelken estimates after improvements the assessed value for taxation will be
$624,414 and the yearly taxes will be $17,983. The abatement of$17,983 will be in
effect for 10 years for a total of$179,830. After the abatement period expires the
property will be taxed based on the assessed value for taxation as determined by the
assessor. The ten year abatement is consistent with other affordable senior housing
projects being submitted from Dubuque.
Recommendation
I recommend that the City Council approve the attached resolution directing the
Marquette Hall Urban Revitalization Plan be set for a public hearing on March 7, 2016.
Action Requested
The Action Step is for the City Council to adopt the attached resolution.
Prepared by: Erica Haugen, Community Development Specialist
F:\USERS\CDBG\Urban Revite\Petiti on s for Districts\Marquette Hall 2016\Memo to Council set Public hearing- Marquette Hal I.doc
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RESOLUTION NO. 19-16
RESOLUTION FINDING THAT THE DESIGNATION OF THE MARQUETTE HALL
URBAN REVITALIZATION PLAN IS NECESSARY IN THE INTEREST OF PUBLIC
HEALTH, SAFETY, AND WELFARE OF THE RESIDENTS OF THE CITY OF
DUBUQUE, IOWA.
Whereas, the City Council of the City of Dubuque finds that the property at 2222
Queen Street, (Property) is currently vacant and underutilized, and Cohen -Esrey
Affordable Partners (Cohen -Esrey) has proposed to develop the Property by
rehabilitating the former Sacred Heart Elementary School into 28 historic and affordable
senior apartments; and
Whereas, the City supports the development and construction of housing and
residential properties which provide quality, affordable housing; and
Whereas, the Property is located in an area eligible for the Urban Revitalization
Tax Exemption program; and
Whereas, in the area proposed for designation under the Urban Revitalization
Act is an area in which there is a predominance of buildings or improvements which by
reason of age, history, architecture or significance should be preserved or restored to
projective use Section 404.1(3) of the Iowa Code; and
Whereas, through the Urban Revitalization Program, the Property is eligible to
receive a one hundred percent exemption from taxation on the actual value added by
the improvements for a period of ten years so long as it is assessed as residential
property or assessed as commercial property, if the commercial property consists of
three or more separate living quarters with at least seventy-five percent of the space
used for residential purposes;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The new construction housing development at the Property legally
described as:
Lot #'s 31,32,33,34 Sanford Sub., according to the recorded plat thereof,
is deemed necessary and in the interest of the residents of the City.
Section 2. That the City Council supports the Cohen-Esrey's Petition asking the
Property be designated an Urban Revitalization Area and supports Cohen-Esrey's
efforts to receive a tax credit award from the Iowa Finance Authority for this
Development.
Section 3. The City Council approves supporting the project and authorizes staff to
work with the City Assessor to complete the form 5S for the Developer's submission to
the Iowa Finance Authority prior to the December 7, 2015 deadline for consideration.
Section 4. The proposed Development is consistent with the City of Dubuque's
affordable housing strategies and goal to implement the City's comprehensive plan.
Section 5. That the City is authorized and directed to submit the Marquette Hall
Urban Revitalization Area Plan to the City's Long Range Planning Advisory Commission
for review and comment.
Section 6. That the City Clerk is directed to publish notice of a public hearing on the
Marquette Hall Urban Revitalization Area Plan to be held on March 7, 2016 at 6:30 p.m.
in the City Council Chambers, 350 West 6th Street, Dubuque, Iowa 52001.
Section 7. That the owners of record will be notified by the thirtieth day prior to the
public hearing.
Passed, approved and adopted this 19th day of uary, 2016.
Ric W. Jone', Mayor Pro -Tem
Attest:
Kev.n S. Firnstahl, 'ity Clerk
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
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 MARQUETTE HALL
Public notice is hereby given that the Council of the City of Dubuque, Iowa, will hold a
public hearing on 7th day of March, 2016, 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 Marquette Hall (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 #'s 31, 32, 33, 34 Sanford Sub., according to
the recorded plat thereof. (2222 Queen Street)
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.
Written comments regarding the above public hearings may be submitted to the City
Clerk's Office on or before said time of public hearing at 50 W. 13th Street, or
ctyclerk@cityofdubuque.org. At said time and place of public hearings all interested
citizens and parties will be given an opportunity to be heard for or against said proposal.
Any visual or hearing impaired persons needing special assistance or persons with
special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or
TDD (563) 690-6678 at least 48 hours prior to the meeting.
This notice is given by order of the City Council of the City of Dubuque, Iowa.
Dated this 19th day of February, 2016.
Kevin Firnstahl, City Clerk of Dubuque, Iowa
1t 2/19
Marquette Hall Urban Revitalization Plan
For Public Review until March 7, 2016
Contents
Introduction......................................................................................................................................... 1
TheArea ...............................................................................................................................................2
Availabilityof Funding......................................................................................................................3
RevenueBonds ..................................................................................................................................3
Relocation............................................................................................................................................3
Qualificationof Areas.......................................................................................................................4
HistoricSignificance.........................................................................................................................4
BuildingConditions...........................................................................................................................4
RevitalizationProgram .....................................................................................................................5
ApplicationProcedure......................................................................................................................6
Conclusion...........................................................................................................................................s
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MARQUETTE HALL URBAN REVITALIZATION PLAN
For Public Review Until March 7, 2016
Introduction
The following plan describes certain provisions of the Iowa Urban Revitalization
Act and proposes the Marquette Hall Revitalization area.
The State of Iowa, under Iowa Code Chapter 404, allows cities to designate
areas as urban revitalization districts. Under this Act, improvements to qualified
areas may receive a total or partial exemption from property taxes for a specified
number of years. The exemptions are intended to stimulate private investment
through the reduction of tax increases related to property improvements.
Once an area is deemed to meet the requirements established in Chapter 404, a
plan must be established which identifies the district boundaries, property
owners, existing conditions, proposed plans and the basic abatement provisions
for the revitalization area.
Iowa Code Chapter 404.1 lists five reasons for which a city or county may
establish urban revitalization plans. These include:
1 . The existence of numerous buildings that are dilapidated or deteriorated;
2. The need for preservation and restoration of buildings due to their historic
significance;
3. The area is appropriated as an economic development region as defined
in Iowa Code 403.17;
4. The need for public improvements related to housing; and
5. The encouragement of housing and residential development.
The Marquette Hall Urban Revitalization Plan will be based upon the
predominance of buildings or improvements which by reason of age, history,
architecture or significance should be preserved or restored to productive use as
defined by Section 404.1(3).
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The Area
Location
The area included in the Marquette Hall Urban Revitalization district is
located at 2222 Queen Street, Dubuque, IA legally described as:
Lots 31 ,32,33,34 Sandford Sub.
A map of the area boundaries is attached as Exhibit A.
Zoning
The existing zoning is OR (Office Residential District). Exhibit B shows the
existing zoning districts. The property was rezoned from R-2A (Alternate
Two-Family Residential District) on December 21 , 2015 (Ordinance No. 76-
15.
Existing and Proposed Land Use
The property was part of the original Sanford's Subdivision platted circa
1900. The Four-story Sacred Heart School was built in 1920 and remained
active until recently. It is currently vacant. The property is on a 27,460
square foot corner lot with frontage along Regent and Queen Streets. The
property accommodates a four-story vacant school building with
approximately 14,000 square feet of area on each floor and an 18-space
surface parking lot with access from both Queen and Regent Street.
The proposed development plan will preserve and restore a historic building
and provide 28 affordable senior housing apartments in the North End
Neighborhood.
Exhibit C identifies the existing primary land use for the proposed district.
Assessed Valuations and Owners of Records
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The assessed value for 2015 is $39,560 for the land and $892,380 for the
building, for a total of$931 ,940. Holy Spirit Parish, 2115 Windsor Avenue,
Dubuque, IA is the current owner of the property. Holy Spirit Parish has
entered into a purchase agreement with Cohen-Esrey Affordable Partners for
the sale of the property pending the approval of state tax credits to finance
the project.
City Services
There are no current plans to expand or improve City services to this area.
Currently the area enjoys the same level of City services as most other areas
of the City.
Availability of Funding
Funding sources for the redevelopment will include private funding, State and
Federal Historic Tax Credits, and Low Income Housing Tax Credits. The City of
Dubuque will sell a City-owned alley for one dollar, a discount off the market rate
value of$11 ,000 to support the project. Contingent upon an award of Low
Income Housing Tax Credits in 2016, the City will contribute $35,000 in
Downtown Rehabilitation Grants (fagade, design, and financial consultant) and
$30,000 Urban Housing Incentive. The establishment of the Marquette Hall
Urban Revitalization Plan will assist to make this project financially feasible.
Revenue Bonds
There are no plans to issue revenue bonds for revitalization projects in this
area.
Relocation
No relocation is expected due to rehabilitation of the parcels identified for this
district since the buildings are currently vacant.
Should relocation occur as a result of rehabilitation in the proposed district,
the person(s) causing a qualified tenant to be displaced shall pay all of the
relocation costs of the tenant as a condition for receiving a tax-exemption
under Iowa Code Section 404.3. "Qualified tenant' shall mean the legal
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occupant of a residential dwelling unit which is located within this designated
revitalization area and who has occupied the same dwelling unit continuously
since one year prior to the city's adoption of this plan pursuant to Iowa Code
Section 404.2.
Qualification of Areas
The Marquette Hall Urban Revitalization District Area is an area comprised
of a four-story vacant building on a relatively level corner lot. The property
was built in 1920. The building was formerly used as the Sacred Heart
School. The property is located in a mixed use area that is characterized by
single and two-family homes, an 18-unit housing complex, a church and
associated parking lot, and a small restaurant with upper story residential.
Historically, buildings associated with a church campus are difficult to
adaptively reuse. These buildings typically sit vacant for long periods of time,
due to the size and limitations for these large structures. The revitalization
and reuse of these currently vacant buildings will prevent deterioration of the
structures and the negative impact on the neighborhood that often results
from blighted properties.
Historic Significance
The Marquette Hall Urban Revitalization Area contains historic structures that
are worthy of preservation. In an effort to prevent the deterioration this
building, it's appropriate that this area be designated as an urban
revitalization area. The plan seeks to preserve and renovate the existing
buildings into functional residential housing units.
Building Conditions
The City Assessor's office has classified the condition of the buildings as
normal. The adaptive re-use of such buildings can be a challenge. To
prevent blight that can be associated with vacant and underutilized structures,
the development of this project is desirable.
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Revitalization Program
Tax Exemption
a) Residential property, assessed as residential or assessed as commercial
property, if the commercial property consists of three or more separate
living quarters with at least seventy-five percent of the space used for
residential purposes, is eligible to receive a one hundred percent
exemption from taxation on the actual value added by the improvements.
The exemption is for a period of ten years. The property tax exemption
will be in accordance with the Code of Iowa, Chapter 404.3(4), providing
for a ten-year, 100% exemption of the actual value added by the
improvements.
b) "Qualified real estate" means real property, other than land, which is
located in a designated revitalization area and to which improvements
have been added, during the time the area was so designated, which have
increased the actual value by at least fifteen percent., or at least ten
percent in the case of real property assessed as residential, or which
have, in the case of land upon which is located more than one building
and not assessed as residential property, increased the actual value of the
buildings to which the improvements have been made by at least fifteen
percent. "Qualified real estate" also means land upon which no structure
existed at the start of the new construction, which is located in a
designated revitalization area and upon which new construction has been
added during the time the area was so designated.
c) Property tax exemption shall be available only for 'improvements', which
include rehabilitation and additions to the existing structures. "Actual
value added by improvements" means the actual value added as of the
first year for which the exemption was received. To qualify for exemption,
improvements to qualified real estate must increase the value of the
property by ten percent for real property assessed as residential property
or fifteen percent for land upon which is located more than one building
and not assessed as residential property, increase the actual value of the
buildings to which the improvements have been made by at least fifteen
percent.
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d) Any improvements that were assessed before the area was officially
designated will not be eligible for exemption. Improvements begun prior to
one year prior to the area becoming designated will not be eligible for
exemption.
e) Improvements must result in that structure meeting applicable building,
plumbing, mechanical, electrical, and other code requirements of the City
of Dubuque.
f) The actual value of the improvements must result in an increase in
assessed value as stated above in (b). Each year an application is made
for tax exemption, the assessed value must have increased in that year by
the required percentage.
g) The area shall become a Revitalization District commencing upon the
adoption of the ordinance approving this Revitalization District by the City
Council. The designation of the Marquette Hall Urban Revitalization Plan
Area will remain in effect until the desired level of revitalization has been
attained, or for five (5) years, whichever occurs first. Upon repeal of the
ordinance establishing this revitalization area, all existing exemptions
would continue until their previously established expiration date.
Application Procedure
This area, upon designation, will follow the procedures for application and
granting of the property tax exemption within the City of Dubuque.
a) The property owner must apply for an exemption by February 1 sc of the
assessment year for which the exemption is first claimed, but not later
than the year in which all the improvements included in the project are first
assessed for taxation, or the following two assessment years, in which
case the exemption is allowed for the total number of years in the
exemption schedule. Upon the request of the owner, the governing body
of the City may provide by resolution that the owner may file an application
no later than February 1 of the tenth assessment year.
b) The application must contain, at a minimum, the following:
a. The nature of the improvements,
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b. The cost of the improvements,
c. The actual or estimated date of completion, and
d. The tenants occupying the property as of the date of the City's
resolution adopting this plan.
c) The City reviews all applications to determine whether the improvement
project conforms to the revitalization plan, is within a designated area, and
if the improvements were made during the appropriate time period. If the
project meets all three criteria, the City shall forward the application to the
assessor by March 1 st, with a statement as to which exemption applies.
Applications for exemptions for succeeding years on approved projects
shall not be required.
d) The local assessor shall review each application by making a physical
review of the property, to determine if the improvements made increased
the actual value of the qualified real estate by at least fifteen percent or
ten percent in the case of real property assessed as residential property.
If the assessor determines that the actual value of that real estate has
increased by at least the requisite percent, the assessor shall certify the
property valuation, determined pursuant to the tax exemption schedule, to
the County Auditor at the time of transmitting the assessment rolls. The
assessor shall notify the applicant of the determination, and the assessor's
decision may be appealed to the local board of review at the time
specified in Iowa Code. The property owner may also refile an application
in a subsequent year after additional improvements have been made.
e) After the tax exemption is granted, the assessor shall continue to grant the
tax exemption, with periodic physical review by the assessor, for the ten-
year time period specified in the tax exemption schedule.
f) An application for exemption received by February 1 in any year after the
year in which the improvement was completed and first assessed for
taxation, is a late application. Late application may be made in any year
up to the tenth year following completion of the improvement. The
exemption period will be the remainder of the ten year period, which
began upon completion of the improvement, except the total number of
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years in the exemption schedule will be allowed if a claim for exemption is
filed within two years of the February 1 filing deadline.
Conclusion
The proposed urban revitalization district will assist the development of
affordable housing for vulnerable populations by providing needed housing
units for seniors in Dubuque. The project will assist the rehabilitation efforts
of vacant or deteriorating properties by providing needed housing units and
supporting reuse of existing structures for the citizens of Dubuque. In
addition, the rehabilitation of the buildings will place the formerly tax-exempt
buildings on the tax rolls. After the ten-year abatement period lapses on
these projects, the full assessed value of the rehabilitation property will go on
the tax rolls to the benefit of the entire community.
F:\USERS\CDBG\Urban Revite\Marquette Hall 2016\Marquette Hall UR Plan.docx
8
Exhibit A: Location of Urban Revitalization District
Plat of Survey (ROW Vacation) of:
Lot 34—A of Sanford Subdivision,
In the City of Dubuque, Iowa
Comprised of: being a ROW vacation of the 20' Alle,
between Regent St. & Queen St. and between Lots
11-19, inclusive, & Lots 31-34, inclusive, all in
Sanforc Subdivision, in the City of Dubuque, Iowa PA PARED NY:NIS A As xA-fE .00 Ess:,a,x LocusT s
DURUWE,IOWA PNONE 365 556-{SRR
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6
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Exhibit C. Current Land Use
Legend
Current Land Use
Land Use Code
Single-Family
Multiple Family
Institutional
fCommeraal
Public open Space
park
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