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MINUTES
CITY OF DUBUQUE LONG RANGE PLANNING ADVISORY COMMISSION
REGULAR SESSION
5:30 p.m.
Wednesday, April 20, 2016
City Council Chamber, Historic Federal Building
Commissioners Present: Chairperson Chad Darter; Commissioners Jim Prochaska,
Alan Vincent, Mark Dolson, John Pregler and Charles Wintenvood.
Commissioners Excused: None.
Commissioners Unexcused: Joshua Clements.
Staff Members Present: Laura Carstens and David Johnson.
CALL TO ORDER: The meeting was called to order by Chairperson Darter at 5:30 p.m.
CERTIFICATION OF COMPLIANCE. Staff presented an Affidavit of Compliance
verifying that the meeting was being held in compliance with the Iowa Open Meetings
Law.
MINUTES: Motion by Prochaska, seconded by Vincent, to approve the minutes of
February 17, 2016 as submitted. Motion carried by the following vote: Aye —Vincent,
Prochaska, Winterwood, Pregler, Darter and Dolson; Nay — None.
TIF Presentation: Rick Dickinson, President and CEO of Greater Dubuque
Development Corporation, presented information on TIF Districts. Mr. Dickinson
thanked the Commission for their service and offered his services to the Commission
for review of future Urban Renewal Districts.
Mr. Dickinson reviewed the role of the Greater Dubuque Development Corporation. He
reviewed the history of TIF, noting the amount of investment TIF has had in the city of
Dubuque as well as the amount of private investment that TIF leverages. He reviewed
how TIF promotes investment in the city of Dubuque as well the different types of TIF
districts. He explained that without perpetual TIF, there would be no industrial parks or
the technology park in the city of Dubuque. He noted the importance TIF has on the
creation ofjobs. He reviewed recent work force data and the importance ofwork force
retention and development. He noted Dubuque currently has 60,100 people working in
Dubuque County. He noted the increase of 1,100 net new jobs over the past year, and
that Dubuque leads job growth per capita in the state.
Minutes — Long Range Planning Advisory Commission Page 2
April 20, 2016
Mr. Dickinson explained how Dubuque uses TIF. He stated Dubuque is careful to use
TIF on projects that would otherwise not be done. He reviewed the recruitment process
explaining how site locators work in recruiting outside businesses, noting businesses
will use site locators to send out informal anonymous inquiries to communities to solicit
incentives or leverage negotiations. He noted companies look at many demographic
and financial factors for communities, but also proximity to transportation and
availability of land. He reviewed how competitive economic development is in recruiting
outside business, noting a number of examples where Dubuque lost out on
opportunities because it judiciously uses TIF.
Mr. Dickinson reviewed how residential TIF is used in wholesale fashion by other
communities, and why the City of Dubuque does not do it in the same way, but is
selective in its use. He noted TIF is the only meaningful tool communities have to
entice business. He reviewed the role of the Greater Dubuque Development
Corporation. He noted GDDC addresses business recruitment and retention, work
force solutions, recruits nationally, recruits retail, supports sustainable innovations and
also works with Start-Up Dubuque.
The Commission questioned whether TIF is offered for existing buildings. Mr.
Dickinson explained only new increments on new value are eligible for TIF. Mr.
Dickinson explained how TIF is used, noting the difference between annual TIF rebates
and up front TIF loans. He noted after 10 years, the tax increment goes back on the tax
rolls. He stated the only exception is perpetual TIF districts.
The Commission questioned how GDDC knows whether a project would have been
completed without the benefit of TIF. Mr. Dickinson noted other communities are
always offering incentives and it is anecdotal evidence only.
The Commission questioned how TIF relates to school tax. Mr. Dickinson reviewed
how incentives work and valuation is retained by the city, noting State Code decides
how that money is used.
Mr. Dickinson and the Commission discussed the cost of development in the city of
Dubuque. Mr. Dickinson reviewed why predevelopment costs are so high in the city.
He explained why developers are incented to develop in rural areas. He stated most
people in neighboring communities commute to work in Dubuque. He explained
housing is cheaper outside of the city because of a lack of development standards, their
use of TIF, and topography. Mr. Dickinson reviewed taxes and fee comparisons with
neighboring communities.
The Commission questioned how the city of Dubuque analyzes the long-term risks
associated with TIF. The Commission asked how TIF affects revenue from the general
fund and how it impacts maintenance and infrastructure funding. The Commission
asked about the actual cost of deferred revenue and deferred maintenance as a result
of TIF.
Minutes — Long Range Planning Advisory Commission Page 3
April 20, 2016
Mr. Dickinson noted TIF does not impact fees for enterprise funds for water and sewer,
which support infrastructure. He explained the City cannot lose what it never had. Mr.
Dickinson acknowledged some communities do abuse TIF, but Dubuque uses it
judiciously and fairly. Mr. Dickinson reviewed how TIF is used for residential,
commercial, and industrial development in Dubuque, noting Dubuque does not provide
TIF for retail projects.
The Commission again questioned how the City and GDDC know TIF was a deciding
factor in business's decisions to locate in Dubuque. The Commission stated there is a
back-end cost to TIF, and Dubuque needs to be prepared and look at those issues. Mr.
Dickinson noted anecdotal evidence is what shows projects will or will not come to
Dubuque as a result of TIF. He explained Dubuque loses more projects than it gets.
He noted some communities will give anything to entice a business where Dubuque
doesn't. He noted there are a number of people that dislike TIF, some of whom
operate in academic circles; however, he felt they do not have a complete
understanding of how competitive economic development is throughout the state.
The Commission thanked Mr. Dickinson for coming and explaining the benefits of TIF
and how it's used. Mr. Dickinson thanked the Commission for their time and again
offered GDDC's assistance to the Commission for review of urban renewal district
projects.
City Council Goal Setting: Planning Services Staff facilitated the City Council goal
setting exercise with the Commission.
City of Dubuque Comprehensive Plan RFP: Staff Member Carstens reviewed the status
of the City of Dubuque Comprehensive Plan update and RFP. She noted Chairperson
Chad Darter and GDDC CEO Rick Dickenson are serving on the consultant selection
committee. Planning Services Staff reviewed the Commission's anticipated role in the
project.
ADJOURNMENT: Motion by Vincent, seconded by Dolson, to adjourn. Motion carried
by the following vote: Aye — Vincent, Prochaska, Winterwood, Pregler, Darter and
Dolson; Nay — None.
The meeting was adjourned at 8:12 p.m.
Respectfully submitted,
Laura Carstens, Planning Services Manager Adopted