Letter of Support — Grayfield Tax Credit for 799 Main StreetCity of Dubuque
City Council Meeting
Consent Items # 08.
Copyrighted
September 6, 2022
ITEM TITLE: Letter of Support—Grayfield Tax Credit for 799 Main Street
SUMMARY: City Manager recommending City Council approve a letter of support for
a Grayfield Tax Credit application to the Iowa Economic Development
Authority for the property located at 799 Main Street.
SUGGESTED Suggested Disposition: Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
Description
799 Main Street - Grayfield Tax Credit Letter of
Support-MVM Memo
Staff Memo
Letter of Support
Type
City Manager Memo
Staff Memo
Supporting Documentation
THE C
DUjIBQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Letter of Support — Grayfield Tax Credit for 799 Main Street
DATE: August 30, 2022
Dubuque
WAWca 914
ii
2007-2012.2013
2017*2019
Economic Development Director Jill Connors is recommending City Council approve a
letter of support for a Grayfield Tax Credit application to the Iowa Economic
Development Authority for the property located at 799 Main Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque
THE CITY OF
All -America My
nni K xvni , nz: a:u�ir,
DUB E
2007-2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Letter of Support — Grayfield Tax Credit for 799 Main Street
DATE: August 24, 2022
INTRODUCTION
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
This memorandum presents for review and approval a letter from the City of Dubuque to
support a Grayfield Tax Credit application to the Iowa Economic Development Authority
for the property located at 799 Main Street.
BACKGROUND
Developers in Iowa can receive tax credits for redeveloping properties known as
brownfield and grayfield sites.
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and has infrastructure in place, but the property's current use is outdated or prevents a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
Our department has received notification from 799 Main, LLC of their intent to submit an
application to the Iowa Economic Development Authority for financial assistance to
redevelop 799 Main Street, which is an underutilized and abandoned building.
The redevelopment of this property will improve the appearance of the Main Street area,
located at the intersection of Locust Street and Main Street. The mixed -use development
will provide 40 additional housing units in the heart of the commercial district. The project
also plans to utilize the historic tax credit program, which will ensure an appropriate,
quality redevelopment of the property.
RECOMMENDATION/ ACTION STEP
I recommend City Council approval of the attached letter of support.
2
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 30, 2022
Matt Rasmussen
Program Manager/CDB Administrator
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, IA 50309
PH: 515.725.3126
Dubuque
All -America City
NAMONALC]VE LFi1CAJE
2007*2012*2013
2017*2019
Economic Development Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
RE: Financial Assistance for 799 Main, LLC Development at 799 Main Street, Dubuque
The City of Dubuque has received notification from 799 Main, LLC of their intent to submit an
application to the Iowa Economic Development Authority for financial assistance to redevelop
799 Main St., Dubuque, IA, which is an underutilized office building.
As part of their application, 799 Main, LLC has requested a letter from the City of Dubuque
indicating whether the subject property at 799 Main St. is located on a qualified Grayfield site
as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield
Redevelopment".
Iowa code defines a grayfield site as "an industrial or commercial property meeting 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:
• 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;
• Assessed value of improvements on the property has decreased by 25 percent or
more;
• The property is used as a parking lot;
• Improvements on the property no longer exist.
The City of Dubuque believes the property located at 799 Main St. is a qualified Grayfield site
for the following reasons:
1. The building was built in 1906 and as the Roshek Brothers department store, which
became Montgomery Ward department store in the early 1930s. When Montgomery Ward
moved out in 1969, the building became a mixed -use commercial building with retail on the
first floor and offices on the second through fourth floors.
2. The building has been less than 1/3 occupied for a number of years.
3. The property has not seen significant improvements since the renovations in the late
1960s-early 1970s, which would now be considered obsolete.
This project will provide additional needed housing and contribute to the continued
revitalization of Dubuque's downtown.
If there are questions that require further discussion, please contact me at 563-589-4213.
Sincerely, j
t
Jill M. Connors
Economic Development Director