Letter of Support for Kretschmer, LLC's Project at 220 E. 9th Street to IEDA's Grayfield Tax Credit Program Copyrighted
J une 7, 2021
City of Dubuque Consent Items # 18.
City Council Meeting
ITEM TITLE: Letter of Support for Kretschmer, LLC's Project at 220 E. 9th Street to
lowa Economic DevelopmentAuthority's Grayfield Tax Credit Program
SUM MARY: City Manager transmitting a letter of support provided to Kretschmer,
LLC fortheir application to the lowa Economic DevelopmentAuthority
for Grayfield Tax Credits to redevelop the property at 220 E. 9th Street,
which is a partially vacant and underutilized former manufacturing facility.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
Kretschmer Letter of Support-MVM Memo City Manager Memo
Staff Memo Staff Memo
Letter of Support Supporting Documentation
Dubuque
THE CITY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Letter of Support for Kretschmer, LLC's Project at 220 E. 9th Street to
lowa Economic Development Authority's Grayfield Tax Credit Program
DATE: May 21, 2021
Economic Development Director Jill Connors is transmitting a letter of support provided
to Kretschmer, LLC for their application to the lowa Economic Development Authority
for Grayfield Tax Credits to redevelop the property at 220 E. 9th Street, which is a
partially vacant and underutilized former manufacturing facility. The proposed
redevelopment of this structure would include an investment of approximately $11
million to create 48 residential units with onsite amenities.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Dubuque Economic Development
Department
THE CITY OF � 1300 Main Street
All•America Eity Dubuque,lowa 52001-4763
�� � "h�N",`��nz�'��:�:��� Office(563)589-4393
1 I ��� TTY(563)690-6678
http://www.cityofd u bu q ue.org
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Letter of Support for Kretschmer, LLC's Project at 220 E. 9th Street to
IEDA's Grayfield Tax Credit Program
DATE: May 17, 2021
INTRODUCTION
This memorandum accompanies a letter of support provided to Kretschmer, LLC for their
application to the lowa Economic Development Authority for Grayfield Tax Credits to
redevelop the property at 220 E. 9t" Street.
BACKGROUND
Developers in lowa can receive tax credits for redeveloping properties know as brownfield
and grayfield sites. Additional tax credits are available for projects that meet or exceed
sustainable design standards as defined by state law.
Grayfield sites are abandoned public buildings, industrial or commercial properties that
are vacant, blighted, obsolete or otherwise underutilized. A grayfield has been developed
and has infrastructure in place but the property's current use is outdated or prevents a
better or more efficient use of the property.
This tax credit program is offered as a way to promote the economic health of
communities by reducing environmental potential hazards, cleaning up eyesores,
creating new jobs and boosting tax revenue.
DISCUSSION
Kretschmer, LLC plans to redevelop 220 E. 9t" Street, Dubuque, IA, which is a partially
vacant and underutilized former manufacturing facility.
We believe the property located at 220 E. 9t" Street is a qualified Grayfield site as defined
by state code for the following reasons:
1. The facility was re-built in 1912 after a devastating fire and served as the
Kretschmer Manufacturing facility until 2007 when the company moved to a
different location in Dubuque.
2. Since 2007, the facility has been underutilized. Several businesses, most recently
Carpet Depot, have utilized the first floor to warehouse product while the second
and third floor have remained vacant and deteriorated due to years of neglected
roof maintenance.
The proposed redevelopment of this structure would include an investment of
approximately $11 million to create 48 residential units with onsite amenities. New
electrical service, water, and sewer will be brought into the facility to replace the original
infrastructure.
RECOMMENDATION/ ACTION STEP
Staff are providing the attached letter of support to Kretschmer, LLC for submission to the
lowa Economic Development Authority with its application for Grayfield Tax Credits, as is
required as part of a complete application.
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Dubuque Economic Development
Department
THE CITY OF �' 1300 Main Street
All-America City Dubuque,lowa 52001-4763
U� � ""�x�,`�`��``���"� Office(563)589-4393
1 I ' TTY(563)690-6678
�� http://www.cityofdubuque.org
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May 11, 2021
Matt Rasmussen
Program Manager/CDB Administrator
lowa Economic Development Authority
Via email: matt.rasmussen(c�iowaeda.com
Re: Grayfield Tax Credit Application for Kretschmer, LLC
The City of Dubuque has received notification from Kretschmer, LLC of its intent to submit
an application to the lowa Economic Development Authority for financial assistance to
redevelop 220 E. 9t" Street, Dubuque, IA, which is a partially vacant and underutilized
former manufacturing facility.
As part of its application, Kretschmer, LLC has requested a letter from the City of Dubuque
confirming the subject property at 220 E. 9t" Street is located on a qualified Grayfield site
as defined in lowa Administrative Code Chapter 261 — 65.11 (15).
lowa code defines a grayfield site as an abandoned public building or an industrial or
commercial property that meets all of the following requirements:
1. Infrastructure on the property is outdated or prevents an efficient use of the
property, including vacant, blighted, obsolete, or otherwise underutilized property.
2. Property improvements and infrastructure are at least 25 years old and one or
more of the following conditions exist:
a. Thirty percent or more of a building located on the property is available for
occupancy and has been vacated or unoccupied for at least 12 months;
b. Assessed value of improvements on the property has decreased by 25
percent or more;
c. The property is used as a parking lot;
d. Improvements on the property no longer exist
The City of Dubuque believes the property located at 220 E. 9th Street is a qualified
Grayfield site for the following reasons:
1. The facility was re-built in 1912 after a devastating fire and served as the
Kretschmer Manufacturing facility until 2007 when the company moved to a
different location in Dubuque.
2. Since 2007, the facility has been underutilized. Several businesses, most recently
Carpet Depot, have utilized the first floor to warehouse product while the second
and third floor have remained vacant and deteriorated due to years of neglected
roof maintenance.
The proposed redevelopment of this structure would include an investment of
approximately $11 million to create 48 residential units with onsite amenities. New
electrical service, water, and sewer will be brought into the facility to replace the original
infrastructure.
If there are questions that require further discussion, please feel free to contact me at
563-589-4213 or iilconno cityofdubuque.orq.
Sincerely, ( .
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Jill M. Connors, Economic Development Director
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