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South Pointe Housing Urban Renewal Area_Initiate Copyright 2014 City of Dubuque Items to be set for Public Hearing # 4. ITEM TITLE: South Pointe Housing Urban Renewal Area SUMMARY: City Manager recommending approval of a Resolution of Necessity that finds that the Urban Renewal Plan for the South Pointe Housing Urban Renewal Area is both necessary and appropriate and sets a public hearing on the proposed plan for December 5, 2016. RESOLUTION of Necessity finding that certain property in and near the South Pointe Subdivision is an Economic Development Area and that the development of said Area is necessary in the interest of the residents of the City of Dubuque, Iowa, and setting a date for hearing on a proposed Urban Renewal Plan for said District SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for 12/5/16 ATTACHMENTS: Description Type South Point Housing Urban Renewal Area-MVM Memo City Manager Memo Staff Memo Staff Memo Attachment Supporting Documentation Financial Summary Supporting Documentation Resolution of Necessity Resolutions Notice of Public Hearing Supporting Documentation THE CITY OF Dubuque DUB E i" Masterpiece on the Mississippi 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution of Necessity to Create the South Pointe Housing Urban Renewal Area DATE: November 2, 2016 Economic Development Director Maurice Jones recommends City Council approval of a Resolution of Necessity that finds that the Urban Renewal Plan for the South Pointe Housing Urban Renewal Area is both necessary and appropriate and sets a public hearing on the proposed plan for December 5, 2016. 1 concur with the recommendation and respectfully request Mayor and City Council approval. 6&-zn' Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, 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: Resolution of Necessity to Create the South Pointe Housing Urban Renewal Area DATE: November 2, 2016 INTRODUCTION This memorandum presents for City Council consideration a Resolution of Necessity that: 1) finds that an Urban Renewal Plan for the South Pointe Housing Urban Renewal Area is both necessary and appropriate; and 2) sets a public hearing on the proposed plan for December 5, 2016. BACKGROUND The South Pointe Housing Urban Renewal Area (the "Area") will be an urban renewal area which allows the City of Dubuque to capture tax increment revenue from improvements made in the Urban Renewal Area in order to promote housing and residential development activities. The Area will be created primarily for the development of a residential district and improvements along Creekwood Drive and Rockdale Road. In addition to funding the development of infrastructure, tax increment financing will be used to benefit Low and Moderate Income (LMI) individuals in our community at large. The proposed Urban Renewal Plan for the Area describes the specific use of tax increment funds, reflecting the utilization of tax rebates, the construction of public infrastructure, and other planned expenditures. DISCUSSION The primary goal of the Plan is to stimulate, through public involvement and commitment, private investment in new housing and residential development as defined by the Iowa Code Section 403.17(12). This proposed Area would result in improved roads and utilities in the Area, as well as funding to assist with LMI family housing anywhere within the City at large. In particular, the Area would provide for road and utility improvements in the Area. With the 10 year life of the Urban Renewal Area it is projected to generate approximately $12 million in increment with $4.5 million going to affordable housing throughout the community and $2.5 million going to improvements in the Area. See attached financial summary. The attached Resolution directs staff to prepare an Urban Renewal Plan for the South Pointe Housing Urban Renewal Area, setting forth the area to be included and the urban renewal projects that are currently expected to be undertaken in the Area, and for LMI households in the community at large. Additionally, staff is required to hold a consultation process, required by law, with the affected taxing entities concerning the proposed Plan. A City Council public hearing on the Urban Renewal Plan will be scheduled for December 5, 2016. The public notice will be published four to twenty days before the meeting to allow for the appropriate publication requirements. This will allow time for preparation of the Plan and the consultation process with the taxing entities. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached Resolution of Necessity that begins the process of creating the Urban Renewal Plan for the South Pointe Housing Urban Renewal Area. The proposed Plan will provide for the continued use of tools that encourage investment and development activities in the Area and support revitalization within the Area and the community at large. Attachment p KE� ""A AN DR ATTACHMENT A PYh rc NORTH CASCADE RD � ¢ t 3 0 q `A<ENTINE o SO UT ` "POINTE: - R S R� - r=. HOUSI`N'G URBAN ,RENE ALAIREA E � pia 9 �9 1 „ , \� t w BIANCA p0. •. � KATHY DR 9p9 DR jy�p 0 HA0.M010.15 CT � Yi . J '1 ))I A ,•- + r TOWER Crq 00 S 4 �r41, �toIjSAVANNrr II'FRAI 1 �, .... a . It ti i J{r vl riF o Tk _ y M p ,10 a I f! o 'ti AQ4pKET 91 SouthDubuque City Limits N KREII=R PARK DR s OP p � � I0 �r � • U S ON City of Dubuque Housing TIF Summary-South Pointe- 101 Single Family/92 Town Homes TIF Revenue Public South Pointe South Pointe 40% to ImprovementsCumulative FY Low Income Public Imp. Developer TIF 2018 $ - $ - $ - 2019 $ 73,785 $ 119,876 $ 47,950 $ 71,925 2020 $ 174,597 $ 283,662 $ 113,465 $ 242,123 2021 $ 321,329 $ 522,055 $ 208,822 $ 555,356 2022 $ 418,647 $ 680,164 $ 272,066 $ 963,454 2023 $ 438,317 $ 712,121 $ 284,848 $ 1,390,727 2024 $ 458,911 $ 164,742 $ 136,599 $ 1,999,708 2025 $ 480,473 $ - $ - $ 2,780,320 2026 $ 503,048 $ - $ - $ 3,597,609 2027 $ 526,684 $ - $ - $ 4,453,298 2028 $ 551,430 $ - $ - $ 5,349,191 2029 $ 577,339 $ - $ - $ 6,287,178 TIF Revenue $ 4,524,562 $ 2,482,620 $ 1,063,750 TIF Funds Committed $ 1,528,075 $ 2,482,620 Uncommitted LMI Funds $ 2,996,487 Subdivision Improvements Sanitary thru McNamer- Easement and Pipe $ 175,000 Water thru McNamer- Easement and Pipe $ 155,000 Tower Drive -Acquisition/Improvements $ 375,000 Fiber Conduit&Vaults $ 358,750 Total Subdivision Improvement $ 1,063,750 Public Improvements ParkfWalking Trail $ 50,000 Fiber Conduits and Vaults- Rockdale $ 127,500 Stormwater- Rockdale Improvements $ 190,330 Sanitary- Rockdale Improvements $ 145,474 Water Connection Fee $ (8,372) 9 Water Service Lines $ 13,500 Rockdale Rd - South Pointe to Maquoketa Dr $ 1,118,599 Rockdale Street Assessments $ (218,160) Total Public Improvements $ 1,418,870 Total Improvements $ 2,482,620 RESOLUTION NO. 382-16 RESOLUTION OF NECESSITY FINDING THAT CERTAIN PROPERTY IN AND NEAR THE SOUTH POINTE SUBDIVISION IS AN ECONOMIC DEVELOPMENT AREA AND THAT THE DEVELOPMENT OF SAID AREA IS NECESSARY IN THE INTEREST OF THE RESIDENTS OF THE CITY OF DUBUQUE, IOWA, AND SETTING A DATE FOR HEARING ON A PROPOSED URBAN RENEWAL PLAN FOR SAID DISTRICT WHEREAS, the City Council of the City of Dubuque has determined that the creation of the South Pointe Housing Urban Renewal Area will stimulate, through public involvement and commitment, private investment in new housing and residential development as defined by Iowa Code 403.17(12), as described in the Urban Renewal Plan; and WHEREAS, the City Council has determined that the area described in Attachment A to this Resolution meets the definition of an economic development area as defined in Chapter 403 "Urban Renewal" of the Iowa Code; and WHEREAS, a significant need for housing units exists in the community and local resources are needed to advance the development; and WHEREAS, Iowa Code Chapter 403 requires that before urban renewal authority may be exercised, a City Council must adopt a resolution of necessity finding that the area in question is a slum, blighted or economic development area, and that so designating such area is necessary in the interest of the public health, safety or welfare of the residents of the municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the proposed South Pointe Housing Urban Renewal Area, generally described in Attachment A to this Resolution, is an economic development area as defined by Chapter 403 of the Iowa Code, appropriate for public improvements related to housing and residential development, and is appropriate for an urban renewal project. Section 2. That the development of the South Pointe Housing Urban Renewal Area is necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning and local community objectives. Section 3. That the development of this area will provide new opportunities for quality housing and job creation in the community. Section 4. That the City Manager is authorized and directed to prepare an Urban Renewal Plan for the South Pointe Housing Urban Renewal Area, to forward said Plan to the City's Long Range Planning Commission for review and comment and to begin the consultation process required by law with affected taxing entities. Section 5. That the City Clerk is directed to publish notice of a public hearing on the adoption of an Urban Renewal Plan for the South Pointe Housing Urban Renewal Area to be held on the 5th day of December, 2016, at 6:00 p.m. in the Historic Federal Building in Dubuque, Iowa, 350 W. 6th Street, Dubuque, Iowa and that said notice shall generally identify the area covered by the Plan and the general scope of the Urban Renewal Plan activities planned for such area. Section 6. That the City Clerk is further directed to send by ordinary mail a copy of said Plan and notice of public hearing to the Dubuque Community School District and the County Board of Supervisors, as the affected taxing entities. PASSED, APPROVED and ADOPTED this 7th day of Nove +er, 2016. ATTEST: A ' Kevin S. ` irnstahl, City Clerk 0 Id Roy D. Buoi, Mayor CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is herebgiven that the City Council of the City of Dubuque, Iowa, will hold a public hearing on 5tt day of December, 2016, at 6:00 p.m., in the Historic Federal Building, City Council Chambers (Second Floor), 350 West 6th Street, Dubuque, Iowa, at which meeting the City Council will consider a proposed Urban Renewal Plan ("Plan") for the South Pointe Housing Urban Renewal Area ("Area"). The Plan for the South Pointe Housing Urban Renewal Area is proposed to help local officials promote housing and residential development in the City of Dubuque ("City"). The primary goal of the Plan is to stimulate, through public involvement and commitment, private investment in new housing and residential development as defined by the Iowa Code Section 403.17(12). The proposed Plan, if approved, would include public improvements related to housing and residential development within public rights- of-way and project activities that may be undertaken in order to achieve the objectives of the Plan. The South Pointe Housing Urban Renewal Area generally includes an area known as the South Pointe Subdivision and some adjoining public right-of-way generally along Creekwood Drive to the west, and Rockdale Road to the south, all located in the City of Dubuque, Iowa. The Area is legally described as follows: LOT 1 OF TOWER INVESTMENTS SUBDIVISION NO. 1 , CITY OF DUBUQUE; AND LOT 1 OF LOT 1 OF LOT 2 OF TOWER INVESTMENTS SUBDIVISION NO. 1 , CITY OF DUBUQUE; AND LOT 2 OF TABLE MOUND MOBILE HOME PARK, CITY OF DUBUQUE; AND LOT 2 OF LOT 1 OF LOT 1 OF LOT 1 OF LOT 1 OF LOT 1 OF LOT 2 OF LOT 2 OF MINERAL LOT 483, CITY OF DUBUQUE; AND LOT 1 OF MARY LOU PLACE, CITY OF DUBUQUE; AND LOT 1 OF MCNAMER ACRES NO. 1 ; AND LOT 1 OF MCNAMER ACRES NO. 3; AND LOT 2 OF MCNAMER ACRES NO. 3; AND ALL THAT PART OF THE MANSON ROAD RIGHT OF WAY LYING NORTH AND EAST OF ITS SOUTHERLY TERMINUS AND LYING SOUTH AND WEST OF THE NORTHWESTERLY EXTENSION OF THE EASTERLY LINE OF LOT 2 OF MCNAMER ACRES NO. 2; AND ALL THAT PART OF THE CREEKWOOD DRIVE RIGHT OF WAY LYING NORTH AND WEST OF THE WESTERLY RIGHT OF WAY LINE OF MANSON ROAD AND LYING SOUTH AND EAST OF THE SOUTHERLY RIGHT OF WAY LINE OF NORTH CASCADE ROAD; AND ALL THAT PART OF THE ROCKDALE ROAD RIGHT OF WAY LYING SOUTH OF THE WESTERLY EXTENSION OF THE NORTH LINE OF LOT 1 OF MARY LOU PLACE AND LYING NORTH OF THE SOUTHERN TERMINUS OF THE ROCKDALE ROAD RIGHT OF WAY; AND ALL THAT PART OF THE KEY WEST DRIVE RIGHT OF WAY AND THE US HIGHWAY 61 RIGHT OF WAY LYING SOUTH OF THE EASTERLY AND WESTERLY EXTENSION OF THE SOUTH LINE OF LOT 2-1-1-1-3 OF ANNIE WALLER SUBDIVISION #2 AND LYING NORTH OF THE EASTERLY AND WESTERLY EXTENSION OF THAT PART OF LOT 1 OF MINERAL LOT 479 LYING WEST OF US HIGHWAY 61 . Under the Plan, it is expected that a portion of the available tax increment revenues generated within the Area, equal in amount to at least 38.1 % of the expected project costs, are to be used for purposes of providing assistance to low and moderate income housing in the community at large. At the above meeting, the City Council will receive oral and written comments from any resident or property owner of said City to the above action. Written comments regarding the proposed Plan may be submitted to the City Clerk's Office on or before said time of public hearing. Copies of supporting documents for the public hearing are on file in the City Clerk's Office, 50 W. 131h Street, and may be viewed during normal working 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) 589-4120 or TTY (563) 690-6678 at least 48 hours prior to the meeting. Published by order of the City Council given on the 7th day of November, 2016. Kevin S. Firnstahl, CMC City Clerk