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Letter of Support for Lumber Shed ProjectTHE CITY OF Dui Masterpiece on the Mississippi Mr. John Gronen President Gronen Development 900 Jackson St Ste. LL -2 Dubuque, IA 52001 Dear Mr. Gronen, Dubuque biltd All -America City 1,' 2007 • 2012 • 2013 June 18, 2018 City Manager's Office City Hall 50 West 13th Street Dubuque, Iowa 52001-4805 Office (563) 589-4110 Fax (563) 589-4149 TTY (563) 690-6678 ctymgr@cityofdubuque.org www.cityofdubuque.org Redeveloping historic properties in downtown areas can be an expensive venture. Building new at the outskirts of town can be a less expensive option, but the City of Dubuque believes there are many benefits to revitalizing the downtown area. The Lumber Shed, originally part of the Farley and Loetscher Manufacturing Company, was once the largest millwork company in the world. This project will spur economic development in our lowest -income census tract, encourage additional revitalization, utilize existing resources to prohibit the destruction of the environment, and create a historical destination where citizens and visitors can live, work, and play. The Lumber Shed is one of Dubuque's signature buildings in our Historic Millwork District which has a very strong visual presence in the community. The project will create over 50 new jobs for the City and be available to our most distressed census tract, the Washington neighborhood, also known as "True North". A significant gap exists for funding this project and New Market Tax Credits will make this significant project move forward. The current property owner sees the potential to redevelop the properties and to create a connection for citizens, workers, and visitors between the two areas. This will help spur additional revitalization in the district. The Historic Millwork District offers authenticity, character, and valuable lessons about the importance of sustainable urban design strategies. At the start of the 20th century, the District was the innovative and entrepreneurial center of the region and was the backbone of the regional economy. The revitalization of the Historic Millwork District will renew the area with a strategy that connects people, planet, and profit in a mixed-use neighborhood. The City of Dubuque is committed to revitalizing the downtown and this project is a catalyst project to continue the long-term process of transforming the area. The City has been a partner in discovering Service People Integrity Responsibility Innovation Teamwork Mr. John Gronen June 18, 2018 Page 2 financing mechanisms for these projects and is excited for the possibility of making downtown Dubuque a greater place to live, work, and play. Sincerely, Michael C. Van Milligen City Manager MCVM:jh Cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director Copyrighted June 18, 2018 City of Dubuque Consent Items # 42. ITEM TITLE: Letter of Support for Lumber Shed Project SUMMARY: City Manager recommending approval of a Letter of Support to Gronen Properties in support of their development of the Lumber Shed project in the Historic Millwork District. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Letter of Support for Lumber Shed Project Supporting Documentation i Dubuque Cit}�Manager's Office THE CtTY OF � Cit}�Hall 50 West 13th Street D�L E All'AmericaCity Dubuque,Iowa 52001-4805 1 I I / Office(563)589-4110 Fax(563)589-4149 MCtSfC'Y�71L'CL' QYI �'jTL M1SSlSS1��11 � TTY(563)690-6678 zoo�•zo12•20�3 ctti�mgr@cityofdubuque.org ��ww.cityofdubuque.org June 18, 2018 Mr. John Gronen President Gronen Development 900 Jackson St Ste. LL-2 Dubuque, IA 52001 Dear Mr. Gronen, Redeveloping historic properties in downtown areas can be an expensive venture. Building new at the outskirts of town can be a less expensive option, but the City of Dubuque believes there are many benefits to revitalizing the downtown area. The Lumber Shed, originally part of the Farley and Loetscher Manufacturing Company, was once the largest millwork company in the world. This project will spur economic development in our lowest-income census tract, encourage additional revitalization, utilize existing resources to prohibit the destruction of the environment, and create a historical destination where citizens and visitors can live, work, and play. The Lumber Shed is one of Dubuque's signature buildings in our Historic Miliwork District which has a very strong visual presence in the community. The project will create over 50 new jobs for the City and be available to our most distressed census tract, the Washington neighborhood, also known as "True North". A significant gap exists for funding this project and New Market Tax Credits will make this significant project move forward. The current property owner sees the potential to redevelop the properties and to create a connection for citizens, workers, and visitors between the two areas. This will help spur additional revitalization in the district. The Historic Millwork District offers authenticity, character, and valuable lessons about the importance of sustainable urban design strategies. At the start of the 20th century, the District was the innovative and entrepreneurial center of the region and was the backbone of the regional economy. The revitalization of the Historic Millwork District will renew the area with a strategy that connects people, planet, and profit in a mixed-use neighborhood. The City of Dubuque is committed to revitalizing the downtown and this project is a catalyst project to continue the long-term process of transforming the area. The City has been a partner in discovering Service People Integrit}� Responsibility Innovation Teamwork Mr. John Gronen June 18, 2018 Page 2 financing mechanisms for these projects and is excited for the possibility of making downtown Dubuque a greater place to live, work, and play. Sincerely, Michael C. Van Milligen City Manager MCVM:jh Cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director