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Garfield Pl Urban Revite PlanMEMORANDUM April 29, 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 On April 1, the City Council adopted a resolution setting a public hearing for May 6, 2002, on the Amended and Restated Garfield Place Urban Revitalization Area Plan. The amended plan will add an adjoining lot to the existing Garfield Place Urban Revitalization Area Plan. This will allow a property tax exemption for a proposed 19-room single-room occupancy (SRO) facility at 513 Garfield Avenue and extend the duration of the plan. Housing and Community Development Director David Harris is recommending adoption of the amended and restated Garfield Place Urban Revitalization Area Plan on June 7, 2002, if no valid petition for a second public hearing is filed after the required 30-day waiting period. 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 co ~ CITY OF DUBUQUE, IOWA MEMORANDUM April 22, 2002 TO: MiChael C. Van Milligen, City Manager FROM: David Harris, Housing and Community Development Department SUBJECT: Amended and Restated Garfield Place Urban Revitalization Area Plan Introduction This memorandum recommends that the City Council adopt the ordinance approving the Amended and Restated Garfield Place Urban Revitalization Area Plan. Background On April 1, the City Council adopted a resolution setting a public hearing for May 6, 2002 on the Amended and Restated Garfield Place Urban Revitalization Area Plan. The amended plan will add an adjoining lot to the existing Garfield Place Urban Revitalization Area Plan. This will allow a property tax exemption for a proposed 19 room single-room occupancy (SRO) facility at 513 Garfield Avenue and extend the duration of the plan. Discussion At the public headng, the Council will not be able to adopt the plan because the Iowa Code requires that property owners and tenants of a proposed district be given thirty days following the first hearing to petition for a second headng. 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 subroitted, the City Council may set at second public hearing and proceed to act upon the proposed plan following that hearing. If no such petition is presented, the Council may simply adopt the proposed plan following the thirty-day pedod. The attached ordinance directs the City Clerk to publish the Ordinance following the 30-day peded if no valid petition for a second hearing is filed. This should reduce the waiting time for the developer. Recommendation I recommend that the City Council approve the ordinance authorizing adoption of the amended and restated Garfield Place Urban Revitalization on or after June 7, 2002 if no valid petition for a second headng is filed. Action Requested The Action Step is for the City Council to adopt the attached ordinance. Prepared by: Aggie Kramer, Community Development Specialist F:~Users'~AKRAMER\Urban Revite\Garrleld Place\GarfPi~;eordmem.d~c ORDINANCE NO, 38-02 AN ORDINANCE ESTABLISHING THE AMENDED AND RESTATED GARFIELD PLACE URBAN REVITALIZATION AREA AS AN URBAN REVITALIZATION AREA PURSUANT TO CHAPTER 404 OF THE CODE OF IOWA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Amended and Restated Garfield Place Urban Revitalization Area as hereinafter described shall hereafter be designated an urban revitalization area pursuant to Chapter 404 of the Code of Iowa 1999, to wit: Lot 2 and Lot 3 of Davis Place II in the County of Dubuque, City of Dubuque, Iowa, according to the recorded plat thereof. Section 2. That the Amended and Restated Garfield Place Urban Revitalization Area as hereto attached is hereby adopted and approved and the properties within said described area shall be subject to the provisions of said Plan. Section 3. That said Amended and Restated Garfield Place Urban Revitalization Area shall hereafter be on file in the City Clerk's Office, City Hall, Dubuque, Iowa. Section 4. That the City Clerk is hereby authorized and directed to publish this Ordinance on or after June 7, 2002, provided that the City Clerk prior to that date has received no valid petition requesting a second public hearing, and in the event such petition has been received, then this Ordinance shall be null and void. Passed, approved and adopted this Attest: Jeanne F. Schneider, City Clerk 6th day of May 2002. Terrance M. Duggan, Mayor F:\Users~AKRAMER\Urban Revite\Gaffield Place\GarExtOrd..doc Planming Services Depar~nent City Hall 50 West 13th Street Dubuque, Iowa 520014864 (563) 5894210 office (563) 589-4221 fax planningCk4tyofdubuque.org April 25, 2002 The Honorable Mayor and City Council Members City of Dubuque City Hall - 50 W. 13th Street ._~'~ -c:~ Dubuque IA 52001 ~ ~ ::~ RE: Amended and Res~ted Ca.eld Place Urban Revi~lization District ~ :~:; Dear Mayor and Ci~ Council Members: ~ ~_. ~ The Long Range Planning Adviso~ Commission has reviewed the pmpos~ amendment ~the Gaffield Place H~an Rev~al~stion DiUril. ~is amendment would add an adjoinin~ lot to th~ dist~ct, and so provide pmpe~ tax abatement for construction of a proposed ~ O-room SRO (sinol~-mom occupant) faeil~ at 5~ 3 Ga~iold ~venue. By City Code, the Commission is to review new and amended urban revitalization plans for their consistency with the City's Comprehensive Plan. The Commission finds that the plan for this area supports several goals of the Comprehensive Plan: Housing: To assist local service agencies in providing shelter and semi-independent living for persons in need of supporting services. Economic Development. To establish and maintain housing and transportation, communication, and utility systems which support and foster quality development. Land Use and Urban Design: To encourage redevelopment opportunities within the City in an effort to revitalize unused or underused property while ensudng the preservation for viable and affordable housing stock. To encourage the concept of mixed use development to create diverse and self-sufficient neighborhoods. Human Services: To work with area providers to promote~ optimum services to meet food, clothing, shelter, transportation, and other basic ma~rial needs. The Commission supports the proposed amendment to the Garfield: Place Urban Revitalization District as consistent with the City's Comprehensive Plan, and unan!mously recommends City Council adoption of this amendment. Respectfully submitted, ary Lynn Neumeister, Chairperson -- Long Range Planning Advisory Commission cc: David Harris, Housing and Community Development Director S~vice People Integx*ity Responsibility Innovation Teamwork Planning Services Department 50 West t3th Street Dubuque, lowa 52001-4864 (,~) 5~.zzt plannLrtg~ci~ofdubuque,org Apd125,2002 The Honorable Mayor and City Council Members City of Dubuque City Hall - 50 W. 13t~ Street Dubuque IA 52001 RE: Amended and Restated Garfmld Place Urban Revitalization District Dear Mayor and City Council Members: The Long Range Planning Advisory Commission has reviewed the proposed amendment to the Carroll Place Urban Revitalization District. This amendment would add an adjoining lot to the district, and so provide property tax abatement for construction of a proposed 19-room SRO (single-mom occupancy) facility at 513 Garfield Avenue. By City Code, the Commission is to review new and amended urban revitalization plans for their consistency with the City's Comprehensive Plan. The Commission finds that the plan for this area supports several goals of the Comprehensive Plan: Housing:. To assist local sewice agencies in providing shelter and semi-independent living for persons in need of supporting services. Economic Development:. To establish and maintain housing and transportation, communication, and utility systems which support and foster quality development. Land Use and Ud~an Design: To encourage redevelopment opportunities within the City in an effort to revitalize unused or underused property while ensudng the preservation for viable and affordable housing stock. To encourage the concept of mixed use development to create diverse and serf-sufficient neighborhoods. Human Services: To work with area providers to promote optimum services to meet food, clothing, shelter, transportation, and other basic material needs. The Commission supports the proposed amendment to the Garfield Place Urban Revitalization District as consistent with the City's Comprehensive Plan, and unanimously recommends City Council adoption of this amendment. Respectfully submitted, umeister, Chairperson Long Range Planning Advisory Commission cc: David Harris, Housing and Community Development Director MEMORANDUM 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: David Harris, 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 areas-as 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 usual!y accompany property improvements. This additional private investment provides a Io~g-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 hearing 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 hearing 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 17th 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 Kremer, Community Development Specialist F :~.Isers~AKRAM ER',U rban Revite~G ar[Placeextmemo02.doc RESOLUTION NO. 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, the Garfield Place Urban Revitalization Area Plan expired with the completion of the development at 511 Garfield; and Whereas, due to the request by Davis Place LLC, owner, to extend the distdct 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 headng 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 an amendment to the Garfield Place Urban Revitalization Area Plan is necessary and appropriate for the rehabilitation, conservation or redevelopment of the hereinafter described area 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 as proposed meets the eligibility criteria of Chapter 404.1 of the Code of Iowa, 1999. 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 13~h Street, Dubuque, Iowa. Section 4. That the City is authorized and directed to submit the Amended and Restated Ga~eld 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 hearing 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 Ubrary Auditorium, 360 West 11th Street, Dubuque, Iowa 52001 and that at least seven days notice be given prior to the hearing; and Section 6. That the owners of record and tenants living with the proposed area are notified by the thirtieth day prior to the public hearing. Passed, approved and adopted this day of April 2002. Attest: Terrance M. Duggan, Mayor Jeanne F. Schneider, City Clerk F:\Users~AKRAMER\Urban Revite~G adieldPlaceExtRes.d oc 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 criteda outlined in Iowa Code. Specifically, the City Council has found this area to qualify 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, decent 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 rant. 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 Garfield, legally described as: Lot 2 and Lot 3 of Davis Place il 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. 1 of 6 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 reom 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 reom 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 · Only residential property, whether assessed as residential or commercial shall be eligible for property tax exemption. "Qualified 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 'improvements' 2 of 6 lmpro~err~nts 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 frlteen 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 Garfield 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 industrial bonds for revitalization in this There are no plans to issue revenue projec[s 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 3 of 6 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 property 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 4of6 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 all three criteria, the City shall forward the application to the assessor by March 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 percent 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 I 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 F~Users~KRAMERt, Urban Re~ite~GarFteld PlaceAmd.doc 5of6 RESOLUTION NO. 205-02 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 criteda 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 13~ 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 hearing 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 th~ ~i~eth day Pdor to the Public hearing. Attest: ~Jea~nne F. Scnneiaer, City Clerk Passed, approved and adopted this '1 st. day of April 2002. F:~,Users~ KRAM ER'tUrban RevAe',G adieldPlaceExtRes.doc 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 qualify 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, decent 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 will 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 Garfield, 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 511 Garfield, which is the property described above as March 25, 2002 is $19,070 in total, which is $13,920 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 lot at 513 Garfield is $4,320 for the land in total. Property ownership The current property owner within the area, as of Mamh 18, 2002 is: Davis Place LLC, 17132 Freund Road, Dubuque, IA. Existing zoning classification The existing zoning as Mamh 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-ZA (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 A 19 room single room occupancy (SRO) facility for Iow- and moderate-income men was constructed in November 2000 at 511 Garfield. 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. 513 Garfield currently contains a garage that will be removed. 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 · Only residential property, whether assessed as residential or commercial shall be eligible for property tax exemption. "Qualified 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 'improvements' "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 pement 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 Garfield 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 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 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= 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 I 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 property 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 may submit an amended proposal. 4 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 mede during the appropriate time period. If the project meets all three criteria, the City shall forward the application to the assessor by March 1~, 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 percent 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 reflle 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. EXHIBITA F:'~Jsers',AKRAMER\Urban Revite~Garfield PlaceAmd.doc Garfield Place Urban Revitalization Area Proposed Addition to Urban Re.,,e Area ~ Proposed Addition AMENDED AND RESTATED GARFIELD PLACE URBAN REVITALIZATION AREA LOCATION: 511/515 Garfield Ave LEGAL u~-o~,R,PTION.-,~L' "* ,.° o,""'~,,~ Lot 3 of Davis Place II PARCEL ID: Existing: 10.24.230.020 Proposed: 10.24.230.019 ZONING: OR- Office Residential