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Urban Revitalization and Tax Exemption Plan 2017 G Gratitude in Looking Back, Excellence Reaching Tomorrow 119 Main Street, P.O. Box 29 Gilbert, Iowa 50105 Gilbert ---PAGE BREAK--- Urban Revitalization Plan P a g e I 2 Urban Revitalization and Tax Exemption Plan 2017 Table of Contents I. Purpose and description of Plan 3 II. Designation and description of lands included in Plan 5 A. Designation of Lands Included in Plan for Urban Revitalization 5 B. Individual Listing of Lands Included in Urban Revitalization Area 5 C. Names and Addresses of Owners 5 III. Description of Land Uses 5 A. Existing Uses 5 B. Proposed Uses 6 IV. Existing Valuation 6 V. City Services 6 VI. Requirements for participation 6 A. Effective Dates 6 B. Qualified Real Estate 6 C. Tax Exemption Schedule 7 D. Valuation Increase 8 E. Applications 8 VII. Financing. 9 VIII. Displaced Parties 9 IX. Applicability 9 A. Assessment Classifications 9 B. Agricultural Lands 9 Appendix 1 – Map of the City of Gilbert (the Urban Revitalization Area) Appendix 2 – Table of owners, addresses, and assessed values Appendix 3 – Selected portions of the Zoning Code of the City of Gilbert, Iowa ---PAGE BREAK--- Urban Revitalization Plan P a g e I 3 City of Gilbert, Iowa Urban Revitalization and Tax Exemption Plan 2017 I. PURPOSE, HISTORY, AND FINDINGS A. Purpose. Under chapter 404 of the Code of Iowa, the City Council has the au- thority to establish areas within the city that qualify for an Urban Revitalization Tax Ex- emption (commonly known as a “tax abatement”). The tax exemption is available for owners of certain “qualified real estate” when improvements to those areas contribute to the revitalization of an area within a city. Section 404.1(5) of the Code of Iowa permits a city to designate as a “revitalization area” an area of the city, which is “appropriate for public improvements related to housing and residential development, or construction of housing and residential development, including single or multifamily housing.” Sections 404.1(4) and 403.17(10) of the Code of Iowa permit a city to designate as a “revitaliza- tion area” an area of the city which is appropriate as an “economic development area” because it is “as appropriate for commercial and industrial enterprises, public improve- ments related to housing and residential development, or construction of housing and res- idential development for low and moderate income families, including single or multi- family housing.” B. History. The City Council of the City of Gilbert, Iowa, first exercised its au- thority on May 4, 1992, adopting Resolution 271, directing that an Urban Revitalization Plan be prepared, declaring the City of Gilbert an urban revitalization area, and providing for property tax exemption on qualified real estate. The City adopted an ordinance creat- ing a new Title VI, Chapter 8, of the Municipal Code to govern the procedures for appli- cation and review of proposed exemptions with an original “sunset” date of December 31, 2002. On June 17, 2002, the City Council again exercised its authority by approving Resolution Number 01-47 “Finding necessary the creation of an Urban Revitalization Tax Exemption (tax abatement) in certain areas of the city and exercising authority pursuant to Chapter 404 of the Code of Iowa.” The City adopted Ordinance 281 extending the “sunset” date to December 31, 2007. On September 24, 2007, the City Council exercised its authority again by approving Resolution Number 2007-09-01 “Finding necessary the creation of an Urban Revitalization Tax Exemption (property tax abatement) within the corporate limits of the city and exercising authority pursuant to Chapter 404 of the Code of Iowa and setting a hearing on the required Urban Revitalization Tax Exemption Plan.” The City adopted Ordinance 294 extending the “sunset” date to December 31, 2012. On September 24, 2012, the City Council approved Resolution Number 2012-09-02 “Finding necessary the creation of an Urban Revitalization Tax Exemption (tax abatement) in cer- tain areas of the city and exercising authority pursuant to Chapter 404 of the Code of Io- wa and setting a hearing on the required Urban Revitalization Tax Exemption Plan.” The City adopted Ordinance 314 extending the “sunset” date to December 31, 2017. ---PAGE BREAK--- Urban Revitalization Plan P a g e I 4 On September 11, 2017, the City Council approved Resolution Number 2017-09- 01 “Finding necessary the creation of an Urban Revitalization Tax Exemption (tax abatement) in certain areas of the city and exercising authority pursuant to Chapter 404 of the Code of Iowa and setting a hearing on the required Urban Revitalization Tax Exemp- tion Plan.” C. Findings. In its Resolution of necessity, the City Council made the following findings: The rehabilitation, conservation, redevelopment, and economic devel- opment of the area within the Proposed Revitalization Area is neces- sary, appropriate, and in the interest of the public heath, safety, and welfare of the residents of the City of Gilbert, Iowa; and The area within the Proposed Revitalization Area substantially meets the criteria set out in Iowa Code section 404.1(4) (relating to “[a]n area which is appropriate as an economic development area as defined in section 403.17”) and section 404.1(5) (relating to “[a]n area designated as appropriate for public improvements related to housing and residen- tial development, or construction of housing and residential develop- ment, including single or multifamily housing”); It is necessary, appropriate, and in the interest of the citizens of the City of Gilbert to re-establish by ordinance an Urban Revitalization Tax Exemption; The area lying within the Proposed Revitalization Area should be es- tablished as a “revitalization area,” as defined by section 404.1 of the Code of Iowa; The owners of “qualified real estate,” as defined in section 404.3 of the Code of Iowa, should be eligible for an exemption from property taxes upon the increase in value of real property and improvements within such revitalization area as established by the plan required by section 404.2(2). Based upon experience through the last twenty-five years, the City Council finds that an Urban Revitalization Plan and a Property Tax Exemption Ordinance granting property tax exemptions on qualified real estate has encouraged and will continue to en- courage improvements, additions, and new construction in Gilbert. The City Council recognizes that some of the land designated and included in this plan is or will be used and assessed as primarily agricultural land. The City Council ex- pressly approves the use of agricultural land for development in accordance with section 404.3(8) of the Code of Iowa because it is contiguous to existing commercial, indus- trial, and residential lands and because the development of such land is vital to the continued economic development of Gilbert. The City Council expressly finds that this plan is intended to and will utilize the minimum amount of agricultural land necessary to ---PAGE BREAK--- Urban Revitalization Plan P a g e I 5 accomplish the revitalization of the other classes of property within the urban revitaliza- tion area. The City Council will give special consideration to applications involving ag- ricultural lands all as provided in Part IX(B) of this plan. Based upon the findings in the resolutions of necessity and by direction of the City Council, it is the purpose of this document to set out a plan for the Revitalization Ar- ea as required by section 404.2(2) of the Code of Iowa. II. DESIGNATION AND DESCRIPTION OF LANDS INCLUDED IN PLAN A. DESIGNATION OF LANDS INCLUDED IN PLAN FOR URBAN REVITALIZATION The tracts of land eligible for participation in this program are all lands within the existing corporate limits of the City of Gilbert. A map of this area is attached to this plan as Appendix 1. The plan incorporates by refer- ence the official map and the official zoning map of the City of Gilbert on file in the of- fice of the City Clerk, as it may be amended from time to time. It is the intention of the City Council that newly annexed lands shall qualify for the urban revitalization tax exemption. B. INDIVIDUAL LISTING OF LANDS INCLUDED IN URBAN REVITALIZATION AREA The individual tracts included within the corporate limits of the City of Gilbert are more particularly described in Appendix 2. C. NAMES AND ADDRESSES OF OWNERS The names and addresses of the owners of the lands affected as of the date of the approval of this Plan are included in the listing of individual tracts attached in Appendix 2. III. DESCRIPTION OF LAND USES A. EXISTING USES The existing uses of the tracts affected are generally described by and found in the Gilbert Municipal Code at Title VI, Chapter 5, Articles 3 and 4 (the Zoning code). A copy of Articles 3 and 4 of the Zoning Code are attached as Appendix 3. The existing zoning districts are shown in the following table: Table 1 Zone Description R-1 Single Family District R-1a Single Family District R-2 Two Family District ---PAGE BREAK--- Urban Revitalization Plan P a g e I 6 Zone Description R-3 Multi-Family District R-4 Multi-Family District PDR Planned Residential Development District C-1 Commercial District C-2 Arterial Commercial District C-3 Mixed-use Commercial District M-1 Light Industrial District M-2 Heavy Industrial District PDI Planned Industrial Development District P/I Public/Institutional District A-1 Prime Agricultural District B. PROPOSED USES No change in the land use or zoning code is planned or proposed to be imple- mented as a part of this plan. Zoning and use of land may change as development pro- jects are proposed and approved. Land located at any location within the Revitalization Area of this plan may be rezoned as conditions require. IV. EXISTING VALUATION The valuation for 2017 as assessed by the Story County Assessor of the all the parcels in the designated urban revitalization area are shown in Appendix 2. V. CITY SERVICES No change in the city infrastructure of public lands, roads, water lines, sanitary sewers, storm sewers, or other public improvement is planned or proposed to be imple- mented as a part of this plan. The city’s policy of requiring developers to extend services to newly developed lands will continue. The City Council will continue to evaluate re- quests for city participation in developing infrastructure on a case-by-case basis at the discretion of the City Council. VI. REQUIREMENTS FOR PARTICIPATION A. EFFECTIVE DATES Applications for tax exemptions may be made at the office of the City Clerk dur- ing normal business hours through and including December 1, 2022. After December 1, 2022, no further applications shall be accepted. B. QUALIFIED REAL ESTATE The “qualified real estate” is all of the real property within the corporate limits of the City of Gilbert and is further described in Part II, above. ---PAGE BREAK--- Urban Revitalization Plan P a g e I 7 C. TAX EXEMPTION SCHEDULE Pursuant to section 404.3(5) of the Code of Iowa and in place of any exemption schedules provided for by state law, the City Council adopts tax exemption schedules for “qualified real estate” as follows: 1. Property with Residential Classification For property having a residential classification (other than multiresidential and mixed commercial-residential), the exemption schedule is as follows: Table 2 YEAR FOLLOWING COMPLETION OF IMPROVEMENT PERCENT OF TAX EXEMPTION PERCENT OF TAX PAYABLE 1 60% 40% 2 50% 50% 3 40% 60% 4 30% 70% 5 10% 90% 6 & thereafter 0% 100% Total 190% 2. Property with Classification Other than Residential For property having a classification other than residential, including multiresiden- tial and mixed residential-commercial uses, the exemption schedule, as determined by the City Council, in its discretion, may be as shown in Table 3 or Table 4: Table 3 YEAR FOLLOWING COMPLETION OF IMPROVEMENT PERCENT OF TAX EXEMPTION PERCENT OF TAX PAYABLE 1 100% 0% 2 80% 20% 3 60% 40% 4 30% 70% 5 15% 85% 6 & thereafter 0% 100% Total 285% ---PAGE BREAK--- Urban Revitalization Plan P a g e I 8 Table 4 YEAR FOLLOWING COMPLETION OF IMPROVEMENT PERCENT OF TAX EXEMPTION PERCENT OF TAX PAYABLE 1 100% 0% 2 100% 0% 3 100% 0% 4 & thereafter 0% 100% Total 300% As used in this plan, “multiresidential” refers to residential uses with multiple units, such as apartment buildings. The rates provided in the exemption schedule will be effective for all qualified re- al estate without regard to assessment classification following completion of the im- provements qualifying for the abatement and only after reassessment by the Story County Assessor as provided by law. D. VALUATION INCREASE To qualify for the tax exemption program as set out in this plan and the city’s ena- bling ordinance, an owner of the legal or equitable title in the real property must install improvements (as defined by chapter 404 of the Code of Iowa) increasing the value of the property by a certain percentage, which percentage is dependent on assessment classifica- tion as provided in Iowa Code section 404.3(8) The percentage increase in value is set out by classification below. 1. Nonresidential Real property having an assessment classification of nonresidential must have im- provements increasing the value of the property by at least 10 percent. 2. Residential Real property having an assessment classification of residential must have im- provements increasing the value of the property by at least 15 percent. E. APPLICATIONS Prior application for eligibility for property tax exemption under this plan and the City’s enabling ordinance (codified as Title VI, Chapter 8 of the Gilbert Municipal Code) shall be made by submitting a plan for revitalization including rehabilitation, addition and new construction, for approval by the City Council and the Story County Assessor, pur- suant to Chapters 404.4 and 404.5, of the Code of Iowa. ---PAGE BREAK--- Urban Revitalization Plan P a g e I 9 The City Council may or may not approve applications for the tax exemption in the Council’s reasonable discretion. For example, the Council may reasonably decline to approve an application if the city has in place development agreements touching on the issue or if the city has provided other financial assistance or public improvements that benefit the property. In addition, the City Council may decline to consider applications that are incomplete, for which no occupancy permit has been issued, false, submitted by persons who have previously provided false or misleading information related to the ex- emption, or fail to fulfill the goals of this plan. VII. FINANCING. No city expenditure of funds is planned or proposed to be implemented as a part of this plan. No issuance of revenue bonds is planned or proposed to be implemented as a part of this plan. The city does not anticipate that any federal, state, or private grant or loan program or other financing sources will be used as part of this revitalization plan. The City Council may enter into cost-sharing or other agreements for public improve- ments on a case-by-case basis at the discretion of the City Council. The city presently has no tax increment financing. VIII. DISPLACED PARTIES The City does not anticipate that any party will be displaced by the application of this plan or the granting of any exemption permitted by this Plan or under Title VI, Chap- ter 8 of the Municipal Code. All owners are required to disclose to the City whether any displacement will result from the improvement and the steps taken by the owner to assist in the relocation of displaced persons. The tax exemption provided in this Plan may be denied if the City finds that persons have been or will be displaced and that the owner has failed adequately to provide for relocation or has failed to make full disclosure to the City. IX. APPLICABILITY A. ASSESSMENT CLASSIFICATIONS The abatement program will be applicable to all of the qualified real estate de- scribed in this plan without regard to assessment classification. Because all assessment classifications will be eligible, no criteria for establishing the subset of eligible property will be established. B. AGRICULTURAL LANDS New construction on land assessed as agricultural shall utilize the minimum amount of agricultural land necessary to accomplish the revitalization of other classes of property. Property owners, prior to the beginning of new construction on land assessed as agricultural, shall present a preliminary plan for new subdivisions on agricultural land for review and approval by the City Council. Agricultural land in the city is all contiguous to lands used for residential purposes. The City Council shall consider the effect of each ---PAGE BREAK--- Urban Revitalization Plan P a g e I 10 construction permit upon the existing residential property for its value to rehabilitate or to revitalize that residential property, and the City Council shall study the effect of the re- sultant loss of agricultural land for agricultural purposes before approving a plan to build new construction on agricultural land. ---PAGE BREAK--- Appendix 1 Map of the Urban Revitalization Area (Map of the corporate boundaries of the City of Gilbert, Iowa from Story County GIS.)