Garfield Place Urban Revitalization Area - InitiateMEMORANDUM
March 25,2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amended and Restated Garfield Place Urban Revitalization Area Plan
Housing and Community Development Director David Harris recommends approval of a
resolution to amend and restate the existing Garfield Place Urban Revitalization Area
Plan, and that a public hearing be set for May 6, 2002. The amended plan will add an
adjoining lot to allow property tax exemption for a proposed 19 room single-room
occupancy (SRO) facility at 513 Garfield Avenue and extends the duration of the plan.
I concur with the recommendation and respectfully request Mayor and City Council
approval. ,~/~/~//~~
Michael C. Van Milligen ~
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Director
CITY OF DUBUQUE, iOWA
MEMORANDUM
March 22, 2002
TO: Michael C. Van Milligen, City Manager
FROM: Da ards, Housing and Community Development Department
SUBJECT: Amended and Restated Garfield Place Urban Revitalization Area Plan
Introduction
This memorandum recommends that the City Council review and approve a resolution to
amend and restate the existing Garfield Place Urban Revitalization Area Plan. The
amended plan will add an adjoining lot to allow property tax exemption for a proposed 19
room single-room occupancy (SRO) facility at 513 Garfield Avenue and extends the
duration of the plan.
Background
Urban Revitalization. Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes
cities to designate ~ 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 viability 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 must prepare a revitalization
plan for each designated area and hold at least one public headng after proper notice.
The law mandates specific criteria and procedures that must be followed.
The City Council approved the Garfield Place Urban Revitalization Area Plan on October
20, 2000. The plan provided for urban revitalization tax exemption for the construction of a
19-unit single room occupancy (SRO) building at 511 Garfield Avenue.
Discussion
The amendment adds 513 Garfield to the Garfield Place Urban Revitalization Area and
extends the duration of the plan for 3 years. The proposed project includes construction of
another 19 room SRO facility on the vacant property 513 Garfield Avenue. The owner,
Davis Place LLC, has applied for Local Housing Assistance Program (LHAP) funds for a
$250,000 forgivable loan and for a conventional bank loan. They are requesting the urban
revitalization tax exemption to ensure the feasibility of the project.
There are currently 19 residents at 511 Garfield Avenue. The 513 Garfield property was
recently platted and is currently vacant. No residents will be displaced as part of this
project.
The amended and restated plan will add the adjoining vacant lot to the district and allows
new construction, an improvement for which property tax exemption will be requested. The
original Garfield Place Urban Revitalization Area Plan also provided for new construction,
which has been completed and tax exemption received.
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 headng for May 6, 2002 that will
provide a 30 day comment period on the amended plan. The Long Range Planning
Commission will review the plan at their April 17t~ meeting. The property owner and
tenants will be notified.
At the public hearing, the Council will be able to approve the plan and pass a first reading
of an ordinance designating the property as an urban revitalization area. A second
hearing must be held only if the City receives within the thirty days a valid petition from at
least ten percent of owners or tenants within the designated revitalization area. If such a
petition is submitted, the City Council may set a second public hearing and proceed to act
upon the proposed Plan following that hearing. If no such petition is presented, the City
Council may simply adopt the proposed plan following the thirty day period.
Recommendation
I recommend that the City Council approve the attached resolution directing the amended
and restated Garfield Place Urban Revitalization Plan be set a public hearing for May 6,
2002. At the public hearing an ordinance can be adopted which directs the City Clerk to
publish the ordinance following the 30 day period if no valid petition for a second hearing
is filed. This will expedite the process for the developer.
Action Requested
The Action Step is for the City Council to adopt the attached resolution.
Prepared by: Aggie Kramer, Community Development Specialist
F:\Users~AKRAMERtUrban Revite~G ar fPlaceextmern o02.doc
RESOLUTION NO. 182-02
A RESOLUTION SETTING A PUBLIC HEARING ON A PROPOSAL TO
AMEND CITY OF DUBUQUE ORDINANCE 82-2000 ESTABLISHING THE
GARFIELD PLACE URBAN REVITALIZATION AREA AS AN URBAN
REVITALIZATION AREA PURSUANT TO CHAPTER 404 OF THE CODE OF
IOWA.
Whereas, the City of Dubuque Ordinance No. 82-2000 established the Garfield
Place Urban Revitalization Area; and
Whereas, a 19 room single room occupancy (SRO) has been constructed at 511
Garfield in the Garfield Place Urban Revitalization Area; and
Whereas, due to the request by Davis Place LLC, owner, to extend the district
and construct another 19 room single room occupancy (SRO), an amendment to the
Garfield Place Urban Revitalization Area Plan is necessary; and
Whereas, the area proposed for the amended and restated designation under the
Urban Revitalization Act is an economic development area appropriate for housing and
residential development as defined by Section 403.17 of the Iowa Code; and
Whereas, Chapter 404 of the Code of Iowa provides that a public hearing shall
be held on any proposed amendment of an Urban Revitalization Area Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the rehabilitation,redevelopment and economic development of
the hereinafter described area is found to be necessary in the interest of the public
health, safety and welfare of the residents of the City, to wit:
Lot 2 and Lot 3 of Davis Place II in the City of Dubuque, Iowa, commonly known
as 511 and 513 Garfield Avenue.
Section 2. That the Amended and Restated Garfield Place Urban Revitalization
Area Plan as proposed meets the eligibility criteria of Chapter 404.1 of the Code of
Iowa, 2001.
Section 3. That the proposed Amended and Restated Garfield Place Urban
Revitalization Area Plan attached hereto, shall be a matter of record and shall be
available for pubic inspection in the office of the City Clerk at City Hall, 50 West 13th
Street, Dubuque, Iowa.
Section 4. That the City is authorized and directed to submit the Amended and
Restated Garfield Place Urban Revitalization Area Plan to the City's Long Range
Planning Advisory Commission for review and comment; and
Section 5. That the City Clerk is directed to publish notice of a public headng on
the Amended and Restated Garfield Place Urban Revitalization Area Plan to be held
on May 6, 2002 at 6:30 p.m. in the Carnegie Stout Library Auditorium, 360 West 11th
Street, Dubuque, Iowa 52001; and
Section 6. That the owners of record and tenants living with the proposed area
will be notified by the thirtieth day prior to the public headng.
Passed, approved and adopted this 1st day of Apd12002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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Garfield Place
Urban Revitalization Area Plan
September 2000
Amended and Restated April 2002
Introduction
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404, authorizes
cities to designate an area of the City as a revitalization area. Improvements to
qualified real estate within these designated areas may then become eligible for an
exemption from property taxes for a specified number of years. To implement the
provisions of the Act, the City must prepare a revitalization plan for each designated
area. This document is the plan addressing the requirements of the Act for an area to
be known as the "Garfield Place" Urban Revitalization Area, as amended.
Area eligibility criteria
The City Council has determined that this area is eligible for designation as a
revitalization area as it meets one of the criteria outlined in Iowa Code. Specifically,
the City Council has found this area to quality as an economic development area as
defined by Section 403.17 of the Iowa Code. This definition includes housing
development where there is an inadequate supply of affordable, decant and safe
housing and the provision of that housing will help to retain or attract industry or meet
the needs of the elderly or disabled or of a population which may not be adequately
served.
Designating this area as an Urban Revitalization Area will assist the provision of
housing to a population, which is not adequately served. The proposed Single Room
Occupancy facility wilt provide single men with decent housing at affordable rent. The
property tax exemption will make this project feasible.
Legal description
The property to be included in the Garfield Place Revitalization Area is located at 511
Garfield Avenue and 513 Ga, field, legally described as:
Lot 2 and Lot 3 of Davis Place II in the County of Dubuque, City of Dubuque,
Iowa, according to the recorded plat thereof.
A map of the area boundaries is attached as Exhibit A.
Current assessed value
The current assessed valuation of the area, which is the property described above as
March 18, 2002 is $20,110 in total for 511 Garfield, which is $13,960 for the land and
$5,150 for the building, with an additional exempt $333,440 for the building. The
current assessed valuation of the adjoining vacant at 513 Garfield is $6,510 for the
land, with no buildings.
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Property ownership
The current property owner within the area, as of March 18, 2002 is:
Davis Place LLC, 17132 Freund Road, Dubuque, IA.
Existing zoning classification
The existing zoning as March 18, 2002 is OR (Office Residential) for the entirety of the
property within the boundaries of the Urban Revitalization Area. The zoning was
changed at 511 Garfield from R-2A (Alternate Two-Family Residential district) on May
1, 2000, to allow for the construction of the existing 19 room facility. The adjoining
vacant lot at 513 Garfield was rezoned from R-2A to OR on January 21, 2002.
Existing and proposed land use
The existing land use was converted from a vacant building to a vacant lot on or about
June 3, 2000. A 19 room single room occupancy (SRO) facility for Iow- and moderate-
income men was constructed in November 2000. Rents will be limited to $242 per
month for Iow-income residents. Rents may be higher for moderate income residents.
The income and rent constraints will remain in place for a 20-year term.
The proposed land use is for another 19 room SRO facility for Iow and moderate
income men. Rents will be limited to $250 per month. Rents may be higher for
moderate income residents. The income and rent constraints will remain in place for a
20-year term for this new facility.
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.
Exemption details
o Only residential proper[y, whether assessed as residential or commercial
shall be eligible for property tax exemption.
~Qualifled 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 ten percent
in the case of real property assessed as residential property.
~Qualified real estate" also means land upon which no structure existed at
the start of 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.
· Property tax exemption shall be available only for 'imprcvements'
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"ImProvements" include rehabilitation and additions to existing structures
as well as new construction on vacant land or land with existing
structures.
"Actual value added by improvements" means the actual value added as
of the first year for which the exemption was received.
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.
Improvements must result in that structure meeting applicable building
code requirements of the City of Dubuque.
The actual value of the improvements must result in an increase in
assessed value by at least fifteen percent or ten percent in the case of
real property assessed as residential property before a tax exemption
may be applied. Each year that an application is made for tax exemption,
the assessed value must have increased in that year by at least fifteen
percent or ten percent in the case of real property assessed as residential
property,
The property tax exemption schedule, in accordance with 1999 Code of
Iowa, Chapter 404.3 Subsection 4, is as follows:
A ten-year, 100% exemption of the actual value added by the
improvements.
The designation of the amended and restated Gadield Place Urban
Revitalization Area will remain in effect only until the area is fully
redeveloped or for three years, whichever occurs first. Upon repeal or
expiration of the ordinance establishing the revitalization area, all existing
exemptions would continue until their previously established expiration
date.
Industrial revenue bonds
There are no plans to issue industrial revenue bonds for revitalization projects in this
area.
Relocation
No relocation will occur due to the redevelopment of the property. There are currently
19 residents of the SRO and no resident or business was forced to leave due to
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potential redevelopment of the property.
Anticipated grant or loan programs
The project at 511 Garfield was funded through the Housing Trust Fund $200,000
forgivable loan (Local Housing Assistance Program - Iowa Department of Economic
Development). Additional funding of $300,000 was provided through a conventional
bank loan.
It is anticipated that the project at 513 Garfield will be funded through the Local
Housing Assistance Program (LHAP) $250,000 forgivable loan through the Iowa
Department of Economic Development. Additional funding of $250,00 is expected
through a conventional bank loan.
Conclusion
The Amended and Restated Garfield Place Urban Revitalization Area will assist the
redevelopment efforts of a vacant, deteriorated property which will provide for two
buildings of 19 units each of Single Room Occupancy housing (males only) for the
citizens of Dubuque. After the ten-year property tax exemption period elapses, the full
assessed value of the property will revert to the tax rolls to the benefit of the entire
community.
This area, upon designation, will follow the procedures for application and granting of
the property tax exemption within the City of Dubuque.
Application procedure
1. The property owner must apply for an exemption by February 1~t of the
assessment year for which the exemption is first claimed, but not later than the
year in which all the improvements are first assessed for taxation. 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.
2. 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 living on the properly as of June 26, 2000.
3. The property owner has the option of submitting a proposal for an
improvement project to the City prior to submitting a formal application. If the
proposed project is in conformance with the revitalization plan, the City Council
shall, by resolution, give preliminary approval of the project. Such preliminary
approval shall not entitle the owner to exemption until the improvements have
been completed and found to be qualified. If the proposal is rejected, the owner
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may submit an amended proposal.
4. 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 ail three criteria, the City shall forward the application to the assessor by
Mamh 1't, with a statement as to which exemption applies. Applications for
exemptions for succeeding years on approved projects shall not be required.
5. 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 pement 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.
6. 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.
7. 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.
EXHIBIT A
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