University Lofts Urban Revitalization Plan_Initiate Copyright 2014
City of Dubuque Items to be set for Public Hearing # 4.
ITEM TITLE: University Lofts Urban Revitalization Plan
SUMMARY: City Manager recommending approval of a resolution
directing the University Lofts Urban Revitalization Plan
(Nativity School) be set for public hearing on March 7,
2016.
RESOLUTION Finding that the designation of the University
Lofts Urban Revitalization Plan is necessary to encourage
needed housing and residential development providing
safe, affordable housing for the residents of the City of
Dubuque
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for 3/7/16
ATTACHMENTS:
Description Type
University Lofts Urban Revitalization Plan-MVM Memo City Manager Memo
Staff memo Staff Memo
Resolution Resolutions
University Lofts Urban Revtlization 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: Request for Public Hearing for Designation of University Lofts 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 University Lofts 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 Designation of University Lofts Urban
Revitalization Area District
Introduction
This memorandum presents for City Council a petition for Urban Revitalization Area
Designation from MV Residential Development. The memorandum recommends the
City Council review and approve the attached resolution to set a public hearing for the
University Lofts Urban Revitalization Plan 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 development plan provides for the construction of a 56 units of senior multi-family
housing. The planned development site is located at the corner of Alta Vista and
University. MV Residential Development is proposing mix of one and two bedroom
units with a full spectrum of amenities including on-site management, senior services,
and 100% accessible green design. The project will utilize multiple sources of funding
including Low Income Housing Tax Credits, permanent debt, IFA senior revolving loan
fund, deferred developer fee, IFA senior revolving loan, workforce housing tax credits,
Neighborworrks America funds, and own contribution. The urban revitalization tax
exemption will show local support for the project, which will strengthen MV Residential
Development's Tax Credit application to the Iowa Finance Authority.
The proposed Urban Revitalization plan for University Lofts will provide for an
exemption under 404.3(4) and permit 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. MV
Residential Development 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, the land is valued at $257,830.
Buildings are valued at $3,480,000. The property has a total assessed value of
$3,737,830. This property is currently tax exempt. The proposed development will be
owned by a for-profit entity and will pay taxes. Dubuque City Assessor Rick Engelken
estimates the tax abatement will be for $632,331 over a period of 10 years. After the
abatement period expires, it is estimated taxes will be approximately $71 ,198 annually.
Recommendation
I recommend that the City Council approve the attached resolution directing the
University Lofts 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\Petitions for Districts\University Lofts 2016\Memo to Council.doc
2
RESOLUTION NO. 21-16
RESOLUTION FINDING THAT THE DESIGNATION OF THE UNIVERSITY LOFTS
URBAN REVITALIZATION PLAN IS NECESSARY TO ENCOURAGE NEEDED
HOUSING AND RESIDENTIAL DEVELOPMENT PROVIDING SAFE, AFFORDABLE
HOUSING FOR THE RESIDENTS OF THE CITY OF DUBUQUE
Whereas, the City Council of the City of Dubuque finds that the properties at Parcel
ID#1025101003, part of a 5.48 acre tract currently conveyed to Church of the Nativity,
beginning at the intersection of the north right-of-way line of University Avenue with the
westerly right-of-way of Alta Vista Street (Property) which MV Residential Development
has proposed to develop the Property and create 56 units of senior multi -family
housing; 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
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 as
defined by Section 404.1(5) 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. That the rehabilitation of the Property legally described as:
Being part of a 5.48 acre tract currently conveyed to Church of the Nativity
(current Parcel ID#1025101003), Dubuque County, Iowa, and more
particularly described as follows:
Beginning at the intersection of the north right-of-way line of. University
Avenue with the westerly right-of-way of Alta Vista Street;
Thence from said point of beginning, with said north right-of-way line,
South 79°00'00" West, for a distance of 224.71 feet,
Thence leaving said right-of-way line, on the following three (3) courses
and distances:
1. North 9°00'00 West, for a distance of 99.95 feet;
2. North 34°00'00" West, for a distance of 190.96 feet;
3. North 58°00'00" East, for a distance of 177.42 feet to the
aforementioned westerly right-of-way of Alta Vista Street;
Thence with said right-of-way line, South 32°00'00" East, for a distance of
362.45 feet to the point of beginning, containing approximately 1.36 +/-
acres and being subject to any easements, restrictions, covenants,
ordinances, or agreements of record. This legal description is not based
on field verified boundary or boundary retracement survey;
is deemed necessary in the interest the residents of the City.
Section 2. That the City Council supports MV Residential Development's Petition
that the Property be designated a Urban Revitalization Area and supports the
developer's efforts to receive a tax credit award from the Iowa Finance Authority for this
Development.
Section 3. That the City Council approve the resolution supporting he project and
authorize staff to work with the City Assessor to complete the form 5S for submission by
Developer prior to December 7, 2015 deadline for consideration.
Section 4. That the proposed Development is consistent with the City of Dubuque's
affordable housing strategies and its goal to implement its comprehensive plan.
Section 5. That the City is authorized and directed to submit the University Lofts
Urban Revitalization Area Plan to the City's Long Range Planning Advisory Commission
for review and comment; and
Section 6. That the City Clerk is directed to publish notice of a public hearing on the
University Lofts 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; and
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 January,
Attest:
Firnsta I Ci y Clerk
is W. Jones, rayor Pro -Tem
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 UNIVERSITY LOFTS
Public notice is hereby given that the Council of the City of Dubuque, Iowa, will hold a
public hearing on March 7, 2016, at 6:30 p.m., in the Historic Federal Building, 350
th
West 6 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 University Lofts (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:
Being part of a 5.48 acre tract currently conveyed to Church of the Nativity
(current Parcel ID#1025101003), Dubuque County, Iowa, and more
particularly described as follows:
Beginning at the intersection of the north right-of-way line of University
Avenue with the westerly right-of-way of Alta Vista Street;
Thence from said point of beginning, with said north right-of-way line, South
79º00’00” West, for a distance of 224.71 feet,
Thence leaving said right-of-way line, on the following three (3) courses and
distances:
1. North 9°00'00 West, for a distance of 99.95 feet;
2. North 34°00'00" West, for a distance of 190.96 feet;
3. North 58°00'00" East, for a distance of 177.42 feet to the aforementioned
westerly right-of-way of Alta Vista Street;
Thence with said right-of-way line, South 32º00’00” East, for a distance of
362.45 feet to the point of beginning, containing approximately 1.36 +/- acres
and being subject to any easements, restrictions, covenants, ordinances, or
agreements of record. This legal description is not based on field verified
boundary or boundary retracement survey;
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
th
Clerk’s Office on or before said time of public hearing at 50 W. 13 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 S. Firnstahl, City Clerk of Dubuque, Iowa
1t 2/19
University Lofts Urban Revitalization Plan
For Public Review until March 7, 2017
Contents
Introduction......................................................................................................................................... 1
TheArea ...............................................................................................................................................2
Availabilityof Funding......................................................................................................................4
RevenueBonds ..................................................................................................................................4
Relocation............................................................................................................................................4
Qualificationof Areas.......................................................................................................................4
RevitalizationProgram .....................................................................................................................5
ApplicationProcedure......................................................................................................................7
Conclusion...........................................................................................................................................s
[Type here]
UNIVERSITY LOFTS 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 University Lofts 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;
5. The encouragement of housing and residential development.
The University Lofts Urban Revitalization Plan will be based upon the need for
public improvements related to housing and residential development, or
construction of housing and residential development, including single or
multifamily housing defined by Section 404.1 (5).
1
[Type here]
The Area
Location
The area included in the University Lofts Urban Revitalization district is
located at the corner of Alta Vista Street and University Avenue, Dubuque, IA
legally described as:
Being part of a 5.48 acre tract currently conveyed to Church of
the Nativity (current Parcel ID#1025101003), Dubuque County,
Iowa, and more particularly described as follows:
Beginning at the intersection of the north right-of-way line of
University Avenue with the westerly right-of-way of Alta Vista
Street;
Thence from said point of beginning, with said north right-of-
way line, South 79000'00" West, for a distance of 224.71 feet,
Thence leaving said right-of-way line, on the following three (3)
courses and distances:
North 9000'00 West, for a distance of 99.95 feet;
North 34000'00" West, for a distance of 190.96 feet;
North 58000'00" East, for a distance of 177.42 feet to the
aforementioned westerly right-of-way of Alta Vista Street;
Thence with said right-of-way line, South 32000'00" East, for a
distance of 362.45 feet to the point of beginning, containing
approximately 1 .36 +/- acres and being subject to any
easements, restrictions, covenants, ordinances, or agreements
of record.
A map of the area boundaries is attached as Exhibit A.
2
[Type here]
Zoning
The existing zoning is OR (Office Residential District). Exhibit B shows the
existing zoning districts. The property was rezoned from R-2 (Two-Family
Residential District) to OR (Office Residential District) on November 16, 2015
(Ordinance No. 71-15) to allow for the development of a senior housing
residence encompassing up to 60 dwellings with the required off-street
parking and green space.
Existing and Proposed Land Use
The property is currently an open space/playground site and has been since
the development of the Nativity Church site. The subject parcel is
approximately 1 .3 acres in size.
The proposed development will provide 56 units of senior housing and
include a mix of one and two bedroom units. Amenities will include on-site
management, senior services, a community room, fitness center, theater
room, business center, and picnic shelter.
Exhibit C identifies the existing primary land use for the proposed district.
Assessed Valuations and Owners of Records
The land is valued at $257,830 and buildings are valued at $3,480,000. The
property has a total gross assessed value of$3,737,830. The property is
currently owned by Church of the Nativity, 1225 Alta Vista St, Dubuque IA
52001 .
The proposed revitalization area proposed for development is related to
some of the property assessed. The proposed development is part of parcel
# 1025101003 owned by Church of the Nativity. This is a 1 .3 acre part of the
overall parcel that will be purchased and developed by MV Residential
Development. The remaining parcel will be retained by the Church of the
Nativity.
3
[Type here]
City Services
This area is served by city services and there are no proposals for improving
or expanding services at this time. The area enjoys the same level of City
services as most other areas of the City.
Availability of Funding
The development of the property will be funded with Iowa Low Income
Housing Tax Credits, permanent debt, deferred developer fee, Iowa Finance
Authority Senior Revolving Loan, Workforce Housing Tax Credits,
Neighborworks America Funds, and owner contribution.
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 parcel is 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
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 University Lofts Urban Revitalization District Area is an open
space/playground on a relatively level corner lot on the northwest corner of
University Avenue and Alta Vista Street. The area is approximately 1 .3
acres in size. The area was formerly the location of Nativity Church's school
4
[Type here]
playground, which was removed when the school closed a decade ago.
Since the closure, the campus has been underutilized.
The subject property is located in a mixed use area located at the
intersection of two existing public streets. Though not currently developed,
the University Lofts Urban Revitalization District Area is in a completely
developed portion of the city and is appropriate for new housing
development, compatible with the existing development pattern of the
surrounding property. The surrounding property is a mixture of single family
residential, multi-family residential, commercial, office and religious assembly
uses.
The development of new senior housing will provide the church with needed
financial resources to maintain the former school buildings, also on the
property, that have fallen into a disrepair due to their closure and ongoing
maintenance expenses. There is limited senior housing in the area and an
inadequate supply of affordable, decent and safe housing that meets the
needs of the elderly or disabled. Designating this area as an Urban
Revitalization Area will assist the provision of housing to an underserved
population of seniors needing affordable rents. The property tax exemption
will assist to make this project feasible.
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
5
[Type here]
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'.
"Improvements" include new construction on vacant land. "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.
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
6
[Type here]
Council. The designation of the University Lofts 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,
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
[Type here]
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
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 senior housing for vulnerable populations by providing needed
housing units for seniors in Dubuque. The construction of the building occurs
on the formerly tax-exempt site. After the ten-year abatement period lapses
on this project, 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\University Lofts 2016\University Lofts UR Plan.docx
8
Exhibit A: Location of Urban Revitalization District �J
W "° DUB E SII
Aksbtr*«on wens«
Ins
Im
TD Vicinty Map
>� P
m Location: Narthwmt mmer of University
Avaruaar Atte Msfa
ae
ugwea is
e Legend
us GO comeraumveiistyaatevum
a o��sT
1F�pesTWmiasY
�5
70 0
Exhibit B: Current Zoning
CURRENT ZONING MAP
905
81 —
�.n�
Sl
uque
gra
em Nxaee AfnemTiere on ll¢MirsissWP s -,. -
[Type here]
Exhibit C. Current Land Use
CURR T EP
a
S. ..,
�70 ,. I Legend
.l Current Land Use
Single-Family
Muthple-Family
Commerdal
InS�nal
nus IMI�I� '� p F