Letter of Support for Merge Urban Development's Brownfields Tax Credit Application to Iowa Economic Development Authority Copyrighted
August 1, 2022
City of Dubuque Consent Items # 07.
City Council Meeting
ITEM TITLE: Letterof Supportfor Merge Urban Development's Brownfields Tax
CreditApplication to lowa Economic DevelopmentAuthority
SUM MARY: City Manager recommending City Council approve a letter of support for
Merge Urban Development's Brownfields Tax CreditApplication to lowa
Economic Development Authority (I E DA).
SUGGESTED Suggested Disposition: Receive and File;Approve
DISPOSITION:
ATTACHMENTS:
Description Type
The Stacks- Brownfield Tax Credit Application Letter of City Manager Memo
Support-MVM Memo
Staff Memo Staff Memo
Letter of Support Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Letter of Support for Merge Urban Development's Brownfields Tax Credit
Application to lowa Economic Development Authority
DATE: July 27, 2022
Economic Development Director Jill Connors is recommending City Council approve a
letter of support for Merge Urban Development's Brownfields Tax Credit Application to
lowa Economic Development Authority (IEDA).
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Develoment Director
Dubuque Economic Development
Department
THE CITY OF ' ' 1300 Main Street
All-America City Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Letter of Support for Merge Urban Development's Brownfields Tax Credit
Application to lowa Economic Development Authority
DATE: July 27, 2022
INTRODUCTION
This memorandum provides information on a letter of support to be provided to a multi-
residential developer to accompany its application to the IEDA requesting brownfields tax
credits.
BACKGROUND
Studies show that Dubuque has a significant housing shortage. To this end, City staff
continuously work with developers who propose plans to develop a variety of housing
options in the community.
DISCUSSION
On November 18, 2019, the City of Dubuque entered into a Development Agreement with
Merge Urban Development for the creation of a mixed-use building ("The Stacks") on the
Port of Dubuque. The building is designed as first floor commercial/retail and upper story
residential. The proposed plan includes approximately 180 apartments.
The development agreement as amended includes the following as a condition to closing:
4.7 Developer shall have received an lowa Economic Development Authority
(IEDA) Workforce Housing Tax Credit Award in form and amounts reasonably
satisfactory to Developer. Developer shall apply for IEDA Workforce Housing Tax
Credits in 2021. If the 2021 application is not awarded, Developer may elect to
reapply in 2022.
4.8 Developer shall have received an lowa Redevelopment Tax Credit Award
for Brownfield or Grayfield Sites in form and amounts reasonably satisfactory to
Developer. Developer shall apply for Brownfield or Grayfield Tax Credits in 2021.
If the 2021 application is not awarded, Developer may elect to reapply in 2022.
Merge Urban Development's 2021 request for brownfields tax credits was unsuccessful,
and Merge now has requested a letter of support from the City for its 2022 application.
This support strengthens the application.
Attached is the letter being proposed to support Merge Urban Development's project.
RECOMMENDATION/ ACTION STEP
I recommend City Council approval of the attached letter of support.
2
Dubuque Economic Development
Department
THE CITY OF ' ' 1300 Main Street
All-America City Dubuque,lowa 52001-4763
U� � n'�N",`�""""�� Office(563)589-4393
� �
TTY(563)690-6678
� http://www.cityofdubuque.org
2007*2012�2013
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July 19, 2022
Mr. Matt Rasmussen
lowa Economic Development Authority
1963 Bell Ave
Des Moines, IA 50315
Re: Application for Brownfield/Grayfield Tax Credit Program — The Stacks/Dubuque
Dear Mr. Rasmussen:
The City of Dubuque has received notification from Merge Urban Development of their
intent to submit an application to the State of lowa's Brownfield/Grayfield Tax Credit
Program for assistance in removing various items deleterious to the environmental and
economic viability of property in Dubuque's North Port, as identified on the attached site
plan.
As part of their application, they have requested a letter from the City of Dubuque
indicating the subject properties are brownfield properties as defined by the program.
The City of Dubuque believes the property meet the program's definition of a brownfield
property for the following reasons:
• The property currently consists of vacant underutilized industrial parcels within
the Port of Dubuque where expansion or redevelopment is complicated due to
known historic soil and groundwater contamination.
• The property was historically used in association with industrial purposes from at
least 1909. Historically, the vicinity was the center of heavy industry immediately
adjacent to the Mississippi River, which included a foundry and machine shop,
bulk petroleum storage yards, lumber yards, sand and gravel yards, and a cold
storage facility.
• A Phase II Environmental Site Assessment completed by Braun Intertec
Corporation, which identified the presence of various polycyclic aromatic
hydrocarbon (PAH) compounds in soil across the Site, as well as arsenic and
lead in groundwater at concentrations that exceeded lowa Department of Natural
Resources Statewide Standards.
• A recently conducted Site Investigation Report has confirmed the presence of
various PAH compounds that will require appropriate soil disposal and elevated
vapor concentrations requiring an under-slab vapor mitigation system on portions
of the building.
It is the intention of the current owner to transform the property into a mixed-use facility
with rental residential units and commercial/retail space. Dubuque's distressed housing
market is in need of the residential product they are delivering.
Please call me at (563) 564-5686 if you have any questions or need additional
information.
Sincerely,
Jill M. Connors, Economic Development Director
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