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210 Jones Street - Urban Revitalization Plan Copyright 2014 City of Dubuque Items to be set for Public Hearing # 1. ITEM TITLE: 210 Jones Street- Urban Revitalization Plan SUMMARY: City Manager recommending set a public hearing for August 1 , 2016, on the adoption of an Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area RESOLUTION Fixing the Date for a Public Hearing on the Matter of the Adoption of a Proposed Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for 8/1/16 ATTACHMENTS: Description Type 210 Jones Street- Urban Revitalization Plan-MVM City Manager Memo Memo Staff Memo Staff Memo Urban Revitalization Plan - 210 Jones Street Supporting Documentation Resolution Set Hearing 210 Jones Street Urban Revite 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: Urban Revitalization Area for Redevelopment at 210 Jones Street DATE: June 10, 2016 Economic Development Director Maurice Jones recommends the City Council set a public hearing for August 1, 2016, on the adoption of an Urban Revitalization Plan for the 210 Jones Urban Revitalization Area to assist in the $2.6 million redevelopment of this property. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael 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 AII-AwftlitY Dubuque,Iowa 52001-4864 DUB3 &kE1 I 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: Urban Revitalization Area for Redevelopment at 210 Jones Street DATE: June 9, 2016 INTRODUCTION This memorandum presents for City Council a Resolution approving an Urban Revitalization Area Plan for 210 Jones Street to assist in the $2.6 million redevelopment of this property. BACKGROUND The warehouse at 210 Jones Street is located at the gateway to the City of Dubuque when arriving from the south or east. Since the late 1800s, the building has served multiple commercial purposes, including a soap manufacturer (from 1909-1950) and more recently (1980-2010) as the location of Dubuque Insulation & Siding Company (DISCO). In recent years, the building has been vacant, with most windows and some doors boarded up. Chris Miller has been in conversations with City staff regarding the redevelopment of the property at 210 Jones Street. Mr. Miller has identified two commercial tenants to occupy the renovated building, and he has asked the City to participate in this project in order to make the project financially feasible. The City, in return, will require certain exterior improvements that will beautify this building which is highly visible from the major intersection of Highways 20, 61, and 151. The Economic Development Department has already worked with our consultants and the EPA to provide Phase I and Phase II Environmental Assessments under our current Brownfields Assessment Grant. These assessments will identify whether any contaminants are located at the property and if so, will suggest remediation/mitigation strategies. DISCUSSION City Council approved Resolution 231-16 on June 6, 2016 finding that 210 Jones Street is appropriate as an economic development area and directed staff to prepare a proposed Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area. A 10 year partial tax abatement will be offered to assist the company with their expansion base on the actual value added by the improvements. The abatement is for a period of 10 years. The amount of the partial exemption is equal to a percent of the actual value added by the improvements, determined as follows: A. For the first year, eighty percent (80%). B. For the second year, seventy percent (70%). C. For the third year, sixty percent (60%). D. For the fourth year, fifty percent (50%). E. For the fifth year, forty percent (40%). F. For the sixth year, forty percent (40%). G. For the seventh year, thirty percent (30%). H. For the eighth year, thirty percent (30%). I. For the ninth year, twenty percent (20%). J. For the tenth year, twenty percent (20%). RECOMMENDATION/ ACTION STEP I recommend that the City Council set for public hearing the 210 Jones Street Urban Revitalization Plan. This action supports the Council's goal of supporting economic development while simultaneously reducing our debt level commitments. 210 JONES STREET URBAN REVITALIZATION AREA PLAN JUNE 2016 Introduction: The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404 (the "Act"), authorizes cities to designate one or more areas of the City as a revitalization area, with the goal of increasing or stabilizing the local tax base by encouraging new construction which might otherwise not occur. Improvements to qualified real estate with these designated areas may then become eligible for an exemption from property taxes for a specified numbers 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 "210 Jones Street Urban Revitalization Area." Area eligibility criteria: The 210 Jones Street Urban Revitalization Area below meets the criteria for designation, specifically Section 404.1 (4) of the Code of Iowa, and constitutes "an area which is appropriate as an economic development area" as defined in Section 403.17 of the Code of Iowa. Objectives: This Plan was prepared in conformance with Sections 404.1 and 404.2 of the Act for the purpose of providing incentives and outlining procedures to enhance the potential for commercial development in the 210 Jones Street Urban Revitalization Area. The primary objectives of this Plan are as follows: • Encouraging new construction of commercial properties through the abatement of taxes on the value of the improvements constructed. • Improving economic conditions in the City by creating new commercial development opportunities and taking steps to increase the tax base. • Assisting businesses in the area in their expansion activities. Legal description: The property to be included in the 210 Jones Street Urban Revitalization Area is located in the Greater Downtown Urban Renewal District, and is legally described as: LOT 1 OF CITY LOT 541 , LOT 2 OF CITY LOT 541 , CITY LOT 542, LOT 1 OF LOT 2 OF CITY LOT 543, LOT 2 OF LOT 2 OF CITY LOT 543, LOT "A" OF "VACATED SHIELDS STREET", AND, LOT 2 OF LOT "D" OF "VACATED SHIELDS STREET", IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE UNITED STATES COMMISSIONERS' MAP OF THE SURVEY OF THE TOWN OF DUBUQUE, IOWA, AND THE RECORDED PLATS OF SAID RESPECTIVE SUBDIVISIONS. A map of the 210 Jones Street Urban Revitalization Area boundaries is attached as Exhibit A. Current assessed value: The current assessed valuation of the 210 Jones Street Urban Revitalization Area as of January 1 , 2016, is $254,005.00: $74,099.00 for the building and $179,906.00 for the land. Property ownership: The current property owner in the 210 Jones Street Urban Revitalization Area, as of January 1 , 2016 is 210 Jones, LLC, 1205 Heather Glen, IA 52003. Existing and Proposed Land Use and Zoning Classification: The existing and future land use for the property located within the 210 Jones Street Urban Revitalization Area is Commercial (C). City Services: The City is not proposing to extend any City services to the 210 Jones Street Urban Revitalization Area that are not already provided. Relocation: No relocation will occur due to the redevelopment of the 210 Jones Street Urban Revitalization Area. There are currently no residents located in the 210 Jones Street Urban Revitalization Area and no resident or business will be forced to leave due to potential redevelopment of the 210 Jones Street Urban Revitalization Area. Eligible Improvements: Eligible improvements are limited to rehabilitation of existing commercial structures within the 210 Jones Street Urban Revitalization Area. All new construction, in order to be considered eligible, must be completed in conformance with all applicable regulations of the City of Dubuque. No abatement will be allowed unless a building permit has been issued by the City with respect to the project for which the abatement is requested. Actual value added by improvements means the actual value added as of the first year for which the exemption was received according to tax assessment valuation determined by the Dubuque County Assessor. Exemptions: All commercial and/or industrial real estate is eligible to receive a partial exemption from taxation on the actual value added by the improvements. The exemption is for a period of ten (10) years. The amount of the partial exemption is equal to a percent of the actual value added by the improvements, determined as follows: A. For the first year, eighty percent (80%). B. For the second year, seventy percent (70%). C. For the third year, sixty percent (60%). D. For the fourth year, fifty percent (50%). E. For the fifth year, forty percent (40%). F. For the sixth year, forty percent (40%). G. For the seventh year, thirty percent (30%). H. For the eighth year, thirty percent (30%). I. For the ninth year, twenty percent (20%). J. For the tenth year, twenty percent (20%). Application Procedures: An application must be filed for each new exemption claimed. A property owner must apply to the City for an exemption by February 1 sc of the assessment year for which the exemption is first claimed. The application must contain, but is not limited to, the following information: a description of the proposed new construction project, its cost, and the estimated or actual date of completion of the new construction. All applications must be on the form of application provided by the City. Approval of Applications: A property owner may submit a proposal for a new commercial construction project to the City Council to receive prior approval for eligibility for a tax exemption on the project. The City Council must give its prior approval if the project is in conformance with this Plan for revitalization. However, if the proposal is not approved, the owner may submit an amended proposal for the City Council to approve or reject. Such prior approval will not entitle the owner to exemption from taxation until the new construction has been completed and found to be qualified for the exemption. For prior approval and non-prior approval applications, the City Council must approve an application submitted for approval if: The project, as determined by the City Council, is in conformance with this Plan; The project is located within the 210 Jones Street Urban Revitalization Area; The improvements were made during the time the 210 Jones Street Urban Revitalization Area was so designated; The project has obtained a building permit from the City; and Any other legal requirement. All approved applications must be forwarded by the City to the Dubuque City Assessor by March 1 for review, and a final determination of eligibility by the Assessor, pursuant to Section 404.5 of the Code of Iowa. The City Assessor must make a physical review of all properties with approved applications. The City Assessor must determine the increase in actual value for tax purposes due to the new construction and notify the applicant of the determination, which may be appealed to the local board of review pursuant to Section 441 .37 of the Code of Iowa. After the initial tax exemption is granted, the City Assessor must continue to grant the tax exemption for the time period specified on the approved application. The tax exemptions for the succeeding years will be granted without the owner(s) having to file an application for succeeding years. Revenue Bonds: The City has no plans at the present time to issue revenue bonds for revitalization projects within the 210 Jones Street Urban Revitalization Area. Conclusion: The incentives provided within the 210 Jones Street Urban Revitalization Area are intended to assist 210 Jones, LLC with a rehabilitation of the property beginning in 2016. Exhibit A M 18,2CITY LOT541&C U3T5C2&LDTS1&25U87CM LOT 543,LOTH&IDT 25UB D VACATEDSHIELDS ST. 2 (ONES ST �y 20N65T z Z t I � '�JORTH RESOLUTION NO. 247-16 FIXING THE DATE FOR A PUBLIC HEARING ON THE MATTER OF THE ADOPTION OF A PROPOSED URBAN REVITALIZATION PLAN FOR THE 210 JONES STREET URBAN REVITALIZATION AREA WHEREAS, the City Council has determined that certain areas within the City of Dubuque can be revitalized and the potential for development enhanced by the adoption of an Urban Revitalization Plan as authorized by Chapter 404, Code of Iowa; and WHEREAS, the City Council approved Resolution 231-16 on June 6, 2016 finding that 210 Jones Street is appropriate as an economic development area and directed staff to prepare a proposed Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area. WHEREAS, the adoption of the Urban Revitalization Area Plan for 210 Jones Street, attached hereto, for such urban revitalization will result in the improvement of public health, safety and welfare of the residents of Dubuque; and WHEREAS, before the Urban Revitalization Area Plan for 210 Jones Street can be adopted, it is necessary that a public hearing be held thereon and that due notice be given in accordance with the requirements of Chapter 404, Code of Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. It is determined that it is in the best interests of the citizens of the City of Dubuque that the City Council hold a public hearing on the matter of the adoption of the Urban Revitalization Area Plan for 210 Jones Street on the 1st day of August, 2016 at 6:30 p.m., in the City Council Chambers, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. The Clerk is hereby directed to publish notice of such hearing at least once, not less than thirty days prior to the date of the public hearing in the manner provided in Section 362.3 of the Code of Iowa. Section 2. The Clerk also shall, not less than thirty days prior to the public hearing, cause notice of said hearing to be given by ordinary mail at the last known addresses of the owners of record located in the 210 Jones Street Urban Revitalization Area. The Clerk shall also send notice by ordinary mail, addressed to the occupants of all City addresses located within the 210 Jones Street Urban Revitalization Area proposed area, if such addresses be available. Copies of the Urban Revitalization Area Plan for 210 Jones Street shall be made available to the public through the office of the Clerk. form: Section 3. The notice of the proposed hearing shall be in substantially the following 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 THE 210 JONES STREET URBAN REVITALIZATION AREA Public notice is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 1st day of August, 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 Area Plan for 210 Jones Street (the Plan) under the authority of Chapter 404, Code of Iowa, as amended. The property which comprises the revitalization area, known as the 210 Jones Street Urban Revitalization Area, and within which the Plan shall be applicable is legally described as LOT 1 OF CITY LOT 541, LOT 2 OF CITY LOT 541, CITY LOT 542, LOT 1 OF LOT 2 OF CITY LOT 543, LOT 2 OF LOT 2 OF CITY LOT 543, LOT "A" OF "VACATED SHIELDS STREET", AND, LOT 2 OF LOT "D" OF "VACATED SHIELDS STREET", IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE UNITED STATES COMMISSIONERS' MAP OF THE SURVEY OF THE TOWN OF DUBUQUE, IOWA, AND THE RECORDED PLATS OF SAID RESPECTIVE SUBDIVISIONS. Chapter 404, Code of Iowa, as amended, and the Plan authorize the City to make property tax exemptions for property in the 210 Jones Street Urban Revitalization Area 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. This notice is given by order of the City Council of the City of Dubuque, Iowa. Dated this day of , 2016. Kevin S. Firnstahl, City Clerk of Dubuque, Iowa (End of Notice) Passed, approved and adopted this 20th day of June, 2016. Attest: Kevin I=irnstahl, City rk Roy D. Buol, Mayor 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 THE 210 JONES STREET URBAN REVITALIZATION AREA Public notice is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 1st day of August, 2016, at 6:30 p.m., in the Historic Federal th Building, second-floor Council Chambers, 350 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 Area Plan for 210 Jones Street (the Plan) under the authority of Chapter 404, Code of Iowa, as amended. The property which comprises the revitalization area, known as the 210 Jones Street Urban Revitalization Area, and within which the Plan shall be applicable is legally described as LOT 1 OF CITY LOT 541, LOT 2 OF CITY LOT 541, CITY LOT 542, LOT 1 OF LOT 2 OF CITY LOT 543, LOT 2 OF LOT 2 OF CITY LOT 543, LOT “A” OF “VACATED SHIELDS STREET”, AND, LOT 2 OF LOT “D” OF “VACATED SHIELDS STREET”, IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE UNITED STATES COMMISSIONERS’ MAP OF THE SURVEY OF THE TOWN OF DUBUQUE, IOWA, AND THE RECORDED PLATS OF SAID RESPECTIVE SUBDIVISIONS. Chapter 404, Code of Iowa, as amended, and the Plan authorize the City to make property tax exemptions for property in the 210 Jones Street Urban Revitalization Area 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. Written comments regarding the above th public hearing may be submitted to the City Clerk’s Office, 50 W. 13 St., Dubuque, IA 52001 on or before said time of public hearing. The proposed Plan is on file in the office of the City Clerk and available for public inspection or copying during regular office hours. 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 TTY (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 24th day of June, 2016. Kevin S. Firnstahl, City Clerk of Dubuque, Iowa 1t 6/24