City of Asbury Request to Use TIF for Hawkeye Care Facility Copyright 2014
City of Dubuque Consent Items # 20.
ITEM TITLE: City of Asbury Request to Use Tax Increment Financing for
Hawkeye Care Facility
SUMMARY: City Manager recommending approval of the Joint
Agreement with the City of Asbury allowing the City of
Asbury to utilize tax increment financing for the relocation of
the Hawkeye Care Facility to Asbury from Dubuque.
RESOLUTION Approving a Joint Agreement with the City
of Asbury for the relocation of Hawkeye Care Facility from
the City of Dubuque to the City of Asbury, for the purpose
of undertaking an urban renewal project
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
City of Asbury Request to Use TI F for Hawkeye Care City Manager Memo
Facility-MVM Memo
City of Asbury Letter Supporting Documentation
Joint Agreementwitb City of Asbury Supporting Documentation
Resolution Resolutions
THE CITY OF Dubuque
DUB TENWinrkaCky
1111.
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City of Asbury Request to Use Tax Increment Financing for Hawkeye Care
Facility
DATE: September 13, 2016
A request has been received from Sara Burke, City Clerk of the City of Asbury, for City
of Dubuque approval of a Joint Agreement allowing the City of Asbury to utilize tax
incrementing financing for Hawkeye Care Facility, which is relocating its facility from the
City of Dubuque to the City of Asbury. Because of recent changes to the Iowa Code
relating to the use of tax increment financing when a business moves from one
community to another and the receiving community wants to utilize tax increment
financing, the original community must give consent.
I respectfully recommend Mayor and City Council approval of the Joint Agreement with
the City of Asbury, allowing the City of Asbury to utilize tax increment financing for the
relocation of the Hawkeye Care Facility to Asbury.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Sara Burke, City Clerk, City of Asbury
CityofAsbury
September 12, 2016
Mike Van Milligen
City of Dubuque
50 West 13"Street
Dubuque, IA 52001
RF: Hawkeye Care Facility
Dear Mr. Van Milligen:
The Hawkeye Care Facility will be relocating its facility from the City of Dubuque to the City of
Asbury. The City of Asbury would like to utilize incremental property tax revenues for
infrastructure to support the development. Because of recent changes to the Iowa Code relating
to the use of tax increment financing when a business moves from one community to another and
the receiving community wants to utilize tax increment financing, then the original community
must give consent.
Attached for the City of Dubuque's approval is the Joint Agreement with the City of Dubuque
consenting to the City of Asbury the ability to use increment financing for this development for
the September 19,2016 City of Dubuque Council meeting.
Please let me know if you have any questions.
Sincerely,
5a�k , C
City Clerk
5290 Grand Meadow Drive,Suite 1•Asbury,Iowa 52002-2589
cityofasbury.com•into@cityofasbury.com
563.556.7106
Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583-4113
Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583-4113
RESOLUTION NO. 337-16
APPROVING A JOINT AGREEMENT WITH THE CITY OF ASBURY FOR THE
RELOCATION OF HAWKEYE CARE FACILITY FROM THE CITY OF DUBUQUE TO
THE CITY OF ASBURY FOR THE PURPOSE OF UNDERTAKING AN URBAN
RENEWAL PROJECT
WHEREAS, the City of Dubuque has been presented with a Joint Agreement with
the City of Asbury to consent to the relocation of Hawkeye Care Facility (the Care
Center) from the City of Dubuque to the City of Asbury, for the purpose of undertaking
an urban renewal project; and
WHEREAS, the City Council has reviewed the proposed Joint Agreement and
has determined to consent to the relocation of the Care Center as so proposed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City of Dubuque City Council hereby approves the Joint
Agreement with the City of Asbury attached hereto.
Section 2. The Mayor is hereby authorized and directed to sign the Joint
Agreement on behalf of the City of Dubuque.
PASSED, APPROVED and ADOPTED this 19th day of September, 2016.
Kevin J. Lynch, ‘layor Pro -Tem
ATTEST:
Kevin Firnsta I, itlerk
F:\Users\tsteckle\Lindahl\Resolutions\ResolutioRorJointAgreem ent_HawkeyCareFacility_091316.docx
Masterpiece on the Mississippi
Ms. Sara Burke, City Clerk
City of Asbury
5290 Grand Meadow Drive, Suite 1
Asbury, IA 52002-2589
Dubuque
kittul
All -America City
1111
2007 • 2012 • 2013
City Clerk's Office
City Hall
50 W. 13th Street
Dubuque, IA 52001-4864
(563y589-4100 office
(563) 589-0890 fax
ctyclerk@cityofdubuque.org
www.cityofdubuque.org
September 20, 2016
Re: Joint Agreement for Relocation of Hawkeye Care Facility Urban Renewal
Dear Ms. Burke,
Enclosed are two originals executed by the City of Dubuque of the Joint Agreement
between the City of Asbury and the City of Dubuque for the relocation of Hawkeye Care
Facility for the purpose of undertaking an Urban Renewal Project.
Please date each document and secure the required signatures for the City of Asbury
and return an original to my attention.
I am also enclosing a certified copy of our Resolution No. 337-16 approving the
agreement for your records.
Please contact me if you have any questions.
Thank you.
Ke in S. Firnstahl,
City Clerk
Enclosure
cc: Michael C. Van Milligen, City Manager
Barry Lindahl, City Attorney
City0fAsbury
October 13, 2016
Kevin S. Fimstahl, CMC
City of Dubuque
50 West 13th Street
Dubuque, IA 52001
a_.IVED
16OCT I7 PM2:05
City Clerk`s Office
Dubuque, IA
RE: Joint Agreement for Relocation of Hawkeye Care Facility Urban Renewal
Dear Kevin:
I have enclosed an original of the above referenced agreement. If you have any questions, feel
free to contact me.
Thank you.
Sincerely,
Sara L.
City Clker
Enclosure
CMC
5290 Grand Meadow Drive, Suite 1 • Asbury, Iowa 52002-2589
cityofasbury.com • info@cityofasbury.com
563.556.7106
JOINT AGREEMENT
THIS AGREEME T is entered into between the City of Dubuque, Iowa and the City of
Asbury, Iowa as of the tiff day ofj✓. , 2016 (the "Commencement Date").
WHEREAS, the City of Asbury, Iowa has established the Asbury Urban Renewal Area
(the "Urban Renewal Area") pursuant to Chapter 403 of the Code of Iowa; and
WHEREAS, the City of Asbury has adopted an ordinance providing for the division of
taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the
Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code
of Iowa (the "Urban Renewal Tax Revenue Fund"), which fund and the portion of taxes referred
to in that subsection (the "Incremental Property Tax Revenues") may be irrevocably pledged by
the City for the payment of the principal of and interest on indebtedness incurred under the
authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part
projects in the Urban Renewal Area; and
WHEREAS, Hawkeye Care Center of Dubuque, LLC (the "Care Center") is a skilled
nursing and assisted living facility with operations currently located in the City of Dubuque,
Iowa; and
WHEREAS, the Care Center has determined to leave the site (the "Dubuque Site") of its
operations in the City of Dubuque, and the Care Center is seeking a new location for such
operations; and
WHEREAS, the Care Center has found a suitable location for its operations on certain
real property (the "Asbury Site") situated in the Urban Renewal Area; and
WHEREAS, Roosevelt Land Corporation (the "Developer") has proposed to undertake
certain infrastructure improvements (the "Infrastructure Project") at the Asbury Site to support
the development of facilities (the "Care Center Project") to be used in the operations of the Care
Center at the Asbury Site; and
WHEREAS, the Developer has requested that the City of Asbury provide tax increment
financing support to the Infrastructure Project, such support to come in the form of incremental
property tax payments (the "Payments") to the Developer from the Urban Renewal Tax Revenue
Fund under a negotiated development agreement; and
WHEREAS, the movement of the Care Center's operations from the Dubuque Site to the
Asbury Site meets the definition of a "relocation" under Section 403.19.9(b) of the Code of
Iowa; and
WHEREAS, in accordance with Section 403.19.9(a) of the Code of Iowa, Incremental
Property Tax Revenues in the Urban Renewal Tax Revenue Fund cannot be expended or
otherwise used by the City of Asbury in connection with the Care Center Project or the
Infrastructure Project unless the City of Dubuque and the City of Asbury enter into a written
agreement concerning the Care Center's relocation;
NOW, THEREFORE, it is agreed by the City of Dubuque and the City of Asbury as
follows:
Section 1. The City of Dubuque hereby consents to: (1) the relocation of the Care
Center from the Dubuque Site to the Asbury Site; and (2) the City of Asbury using incremental
property tax revenues to fund the Payments to the Developer in support of the Infrastructure
Proj ect.
Section 2. This Agreement is intended to meet the statutory requirements of
Section 403.19.9(a)(1) of the Code of Iowa and shall be immediately effective on the
Commencement Date following approval by the governing bodies, and execution by the
appropriate officials, of the City of Dubuque and the City of Asbury.
The City of Dubuque, Iowa and the City of Asbury, Iowa have caused this Agreement to
be signed in their names and on their behalf by their duly authorized officers, all as of the
Commencement Date.
Attest:
Attest:
-2-
4824-6348-5496\1 9/10/2016 6:59 AM
CITY OF DUBUQUE, IOWA
By
Mayor Pro -Tem`
Date: September 19, 2016
CITY • '" A`, BU IOWA
By
M
Date: %0'71-111