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210 Jones Street - Urban Revitalization Area Ordinance Copyright 2014 City of Dubuque Action Items # 8. ITEM TITLE: 210 Jones Street- Urban Revitalization Area Ordinance SUMMARY: City Manager recommending approval of an Ordinance adopting an Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area to assist in the redevelopment of this property. ORDINANCE Amending City of Dubuque Code of Ordinances Title 3, Revenue and Taxation, Chapter 2 Revitalization Areas, by adopting a new Section 13: 210 Jones Street Urban Revitalization Area, and establishing requirements for qualifying property owners SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Motion B; Motion A ATTACHMENTS: Description Type 210 Jones Street-MVM Memo City Manager Memo Staff Memo Staff Memo Urban Revitalization Plan - 210 Jones Street Supporting Documentation Ordinance Ordinance Suggested Motion 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: Urban Revitalization Area for Redevelopment at 210 Jones Street DATE: November 1, 2016 Economic Development Director Maurice Jones recommends City Council approval of an Ordinance adopting an Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area to assist in the $2.6 million redevelopment of this property. Under the Urban Revitalization Plan, a 10 year partial tax abatement is available to assist the company with its expansion based on the actual value added by the improvements. 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 Development Agreement will provide that the developer will build a 12 space parking lot that will be owned and managed by the City. There is a loss of some on- street parking so this will be a net gain of 6 parking stalls for the area. I concur with the recommendation and respectfully request Mayor and City Council approval. 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 2 Dubuque Economic Development Department THE CITY OF 50 West 13th Street All-Am,ftlily 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: October 31, 2016 INTRODUCTION This memorandum presents for City Council an Ordinance adopting an Urban Revitalization Plan for the 210 Jones Street Urban Revitalization Area 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 Development Agreement between the City and Developer will also require the Developer to construct a twelve-stall parking lot, which the City will then own and maintain as metered or leased stalls. 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 293-16 on August 1 , 2016 approving the 210 Jones Street Urban Revitalization Area. Under the Urban Revitalization Plan, a 10 year partial tax abatement is available to assist the company with its expansion based 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%). As no further public comment or petition was received within 30 days of the public hearing, Iowa Code Section 404.2(6) allows for the passage of an ordinance for final adoption of the Urban Revitalization Plan. RECOMMENDATION/ ACTION STEP I recommend that the City Council approves the attached Ordinance adopting 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. Prepared by: Jill M. Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4213 Return to: Jill M. Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4213 ORDINANCE NO. 57-16 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 3, REVENUE AND TAXATION, CHAPTER 2 REVITALIZATION AREAS, BY ADOPTING A NEW SECTION 13: 210 JONES STREET URBAN REVITALIZATION AREA, AND ESTABLISHING REQUREMENTS FOR QUALIFYING PROPERTY OWNERS NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. City of Dubuque Code of Ordinances Title 3, Chapter 2 is hereby amended by adding the following: 3-2-13: 210 Jones Street A. The area hereinafter described is hereby designated as the 210 Jones Street urban revitalization area in accordance with the code of Iowa: 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. B. The 210 Jones Street Urban Revitalization Plan as attached hereto is hereby adopted and approved and the properties within said described area shall be subject to the provisions of said Plan. C. The 210 Jones Street Urban Revitalization Plan shall hereafter be on file in the City Clerk's Office, City Hall, Dubuque, Iowa. Section 2. This ordinance takes effect upon publication. Passed and approved this 7th day of November, 2016. Attest: .,...(46%PrilrArAWIF7 ars- it - rk Roy D. Buol, Mayor 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 LO naznTY LOTSalacm LOT5CzSOOTS 1 a i SUB2CM LOT 543,EOTA&WT3 SUB o VACATEDSHIEEOs ST. i OJOXES ST JONES Sr z r �� a j / q 1' d N y iy� � ' 'NORTH STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: November 11, 2016, and for which the charge is $19.84. Subscribed to before me otary Public in and for Dubuque County, Iowa, ,20 /. . this .7,0 day of Notary Public in and for Dubuque County, Iowa. OFFICIAL PUBLICATION ORDINANCE NO. 57-16 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 3, REVENUE AND 'TAX- ATION, CHAPTER 2 REVITALIZATION' AREAS, BY ADOPTING A NEW `SECTION 13: 210 JONES STREET URBAN REVITALIZA- TION AREA, AND ESTABLISHING RE-`` QUREMENTS FOR QUALIFYING PROPER- TY OWNERS NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, i IOWA: Section 1. City of Dubuque Code of Ordinances Title 3, Chapter 2 is hereby amended by adding the following: 3-2-13: 210 Jones Street A. The area here- inafter described is hereby designated as the 210 Jones Street urban revitalization. area In accordance with the code of Iowa: 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 COM- MISSIONERS' MAP OF THE SURVEY OF THE TOWN OF DUBUQUE, IOWA, AND THE RECORDED PLATS OF SAID RESPECTIVE SUB- DIVISIONS. B. .The 210 Jones Street Urban Revitaliza- tion Plan as attached hereto' is " hereby Y K. ES•TEHMEYER Commission Number 154885 My Comm. Exp. i E ;?. 1, 2Q17 adopted and approved and the properties within said described area shall be subject to the provisions of said Plan. C. The 210 Jones Street Urban Revitaliza- tion Plan shall ;here- after be on file in the City Clerk's Office, City Hall, Dubuque, Iowa. Section 2. This ordinance takes effect upon publication. Passed and approved this 7th day of November, 2016. /s/Roy D. Buol, Mayor'; Attest: /s/Kevin S. Firnstahl, City Clerk Published officially in the Telegraph Herald' newspaper on the llth day of November, 2016. /s/Kevin S. Firnstahl, City Clerk It 11/11 1111111111111111111111111111113 Doc ID. 008546840003 Type: GEN Kind: ORDINANCE Recorded: 11/10/2016 at 01:43:03 PM Fee Amt: $17.00 Page 1 of 3 Dubuque County Iowa John Murphy Recorder Fi1e2016_00015290 Prepared by: Jill M. Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4213 Return to: Jill M. Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4213 ORDINANCE NO. 57-16 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 3, REVENUE AND TAXATION, CHAPTER 2 REVITALIZATION AREAS, BY ADOPTING A NEW SECTION 13: 210 JONES STREET URBAN REVITALIZATION AREA, AND ESTABLISHING REQUREMENTS FOR QUALIFYING PROPERTY OWNERS NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. City of Dubuque Code of Ordinances Title 3, Chapter 2 is hereby amended by adding the following: 3-2-13: 210 Jones Street A. The area hereinafter described is hereby designated as the 210 Jones Street urban revitalization area in accordance with the code of Iowa: 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. B. The 210 Jones Street Urban Revitalization Plan as attached hereto is hereby adopted and approved and the properties within said described area shall be subject to the provisions of said Plan. C. The 210 Jones Street Urban Revitalization Plan shall hereafter be on file in the City Clerk's Office, City Hall, Dubuque, Iowa. Section 2. This ordinance takes effect upon publication. c;�y Ger\c 0° Passed and approved this 7th day of November, 2016. Attest: irnsta Roy D. Buol, Mayor STATE OF IOWA CERTIFICATE of the CITY CLERK ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Ordinance No. 57-16 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 8th day of November, 2016. Kevi Firnstahl, C , City Clerk