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Proposed Downtown Rehabilitation GrantAward Copyrighted August 7, 2023 City of Dubuque Consent Items # 06. City Council Meeting ITEM TITLE: Proposed Downtown Rehabilitation GrantAward SUM MARY: City Manager recommending City Council resolution approving a grant agreement between the City of Dubuque, lowa and Nia Neighborhoods Opportunity Zone Fund, LLC. RESOLUTION Approving a GrantAgreement by and Between the City of Dubuque, lowa, and Nia Neighborhoods Opportunity Zone Fund, LLC for the Redevelopment of 1398 White Street SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions Grant Agreement Supporting Documentation Dubuque THE CITY QF � All-Meriea Ciry DLT B E ; . � . � �� � � MaSt� Z�C� aYd t�Q Mt55ZSSZ Z zoa�•zoiz•�ai3 YP pp za��*zai� TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proposed Downtown Rehabilitation Grant Award DATE: August 2, 2023 Economic Development Director Jill Connors is recommending City Council resolution approving a grant agreement between the City of Dubuque, lowa and Nia Neighborhoods Opportunity Zone Fund, LLC. Nia Neighborhoods Opportunity Zone Fund, LLC has submitted an application for grant funds to support the rehabilitation of 1398 White Street. The mixed-use property will have two updated, affordable apartments upstairs and a commercial space on the first floor. The current and planned use for the commercial space is an African American barber, catering to the African American community and communities of color which brings a steady stream of customers to this neighborhood. This barbershop began operating in the unimproved space several months ago. Since opening, the barber has added two additional barbers, and attracted two hair stylists who specialize in African American clients. The clientele is diverse, and travels from across the region, from surrounding rural communities and from the five local colleges and universities. The Good Neighbor Inquiry on this owner produced no issues. The funding would include a fa�ade grant at $10,000 maximum, the planning & design grant at $10,000 maximum, and the financial consultant grant at $15,000 maximum. The project will also receive $10,000 per housing unit created for 2 units, for a maximum of$20,000. I concur with the recommendation and respectfully request Mayor and City Council approval. � Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director 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 Masterpiece on the Mississippi zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Proposed Downtown Rehabilitation Grant Award DATE: August 1, 2023 INTRODUCTION This memo presents for City Council consideration a resolution approving a grant agreement between the City of Dubuque, lowa and Nia Neighborhoods Opportunity Zone Fund, LLC. BACKGROUND The Downtown Rehabilitation Loan Program provides for several grant opportunities for the rehabilitation of historic buildings and the creation of quality rental residential units in the downtown area. Since 2007, the City Council has awarded at least one of these grants to 49 different projects. In 2009, the City Council approved the creation of a funding pool to encourage new residential housing units in downtown Dubuque, which complements the rehabilitation grants. The program to date has assisted in the creation of over 340 quality apartments in our downtown. Together, these grants, along with Tax Increment Financing funds, have incentivized the rehabilitation of the Historic Millwork District, multiple buildings in nearly every block along Main Street and many other downtown properties. Some examples are: Caradco, Novelty Iron Works, Linseed, and Dupaco/Voices Buildings in the Millwork District; the Roshek Building; mixed-use buildings in nearly every block of Main Street; multiple buildings along the Central Avenue Corridor; and many others from 1 St Street to 32"d Street. This program has had a positive impact in the appearance and livability of our downtown, which leads to a more attractive business and residential environment. As such, the Economic Development Department finds the program to be a great tool for attracting and retaining a quality workforce for our businesses. DISCUSSION For the property listed, I have perFormed a "Good Neighbor Inquiry" (with Building Services, Engineering, Finance, Health, Housing, Legal, Planning, Police, Public Works, and Utility Billing) for any concerns based on these or other properties owned by the applicants. 1398 White Street Application received December 29, 2022 for a fa�ade grant, a planning & design grant, and a financial consultant grant. Nia Neighborhoods Opportunity Zone Fund, LLC has submitted an application for grant funds to support the rehabilitation of 1398 White Street. The mixed-use property will have two updated, affordable apartments upstairs and a commercial space on the first floor. The current and planned use for the commercial space is an African American barber, catering to the African American community and communities of color which brings a steady stream of customers to this neighborhood. This barbershop began operating in the unimproved space several months ago. Since opening, the barber has added two additional barbers, and attracted two hair stylists who specialize in African American clients. The clientele is diverse, and travels from across the region, from surrounding rural communities and from the five local colleges and universities. The Good Neighbor Inquiry on this owner produced no issues. I recommend funding the fa�ade grant at $10,000 maximum, the planning & design grant at $10,000 maximum, and the financial consultant grant at $15,000 maximum, all from CIP 3602436. The project will also receive $10,000 per housing unit created for 2 units, for a maximum of$20,000. The agreement includes a requirement to comply with the City of Dubuque Housing Rehabilitation Standards and to accept, or cause to be accepted, applications from prospective tenants with housing choice vouchers or similar programs that are otherwise qualified prospective tenants. BUDGET IMPACT CIP USE CURRENT RECOMMENDED REMAINING BALANCE PROJECT FUNDING BALANCE 2 6052000002 FA�ADE, ETC. $614,758 $35,000 $579,758 6052000004 HOUSING $661,730 $20,000 $641,730 This takes into consideration all encumbrances and previous balances from all the consolidated CIP budgets. The project is also located in the downtown urban revitalization area and will be eligible to apply for tax abatement on the increased value of the property. RECOMMENDATION/ ACTION STEP I recommend that the City Council approve the attached resolution approving a grant agreement by and between Nia Neighborhoods Opportunity Zone Fund, LLC and the City of Dubuque for the rehabilitation of 1398 White Street. Cc: Yindra Dixon, Nia Neighborhoods Opportunity Zone Fund, LLC 3 Prepared by:Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 239-23 APPROVING A GRANT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND NIA NEIGHBORHOODS OPPORTUNITY ZONE FUND, LLC FOR THE REDEVELOPMENT OF 1398 WHITE STREET Whereas, Nia Neighborhoods Opportunity Zone Fund, LLC is the owner of the building at 1398 White Street in the City of Dubuque, Iowa (the "Development Property") legally described as: The North 24.9 feet of Lot 482 in the City of Dubuque, Iowa, according to the United States Commissioner's Map thereof; and Whereas, Nia Neighborhoods Opportunity Zone Fund, LLC has applied to the City of Dubuque Economic Development Department (the "City") for a Façade Grant, a Planning & Design Grant, and a Financial Consultant Grant (the "Grants") for the rehabilitation of the Development Property (the "Project"); and Whereas, the Project is eligible for the Grants; and Whereas, City and Nia Neighborhoods Opportunity Zone Fund, LLC have tentatively entered into a Grant Agreement for the Development Property (the "Grant Agreement"), a copy of which is attached hereto; and Whereas, it is the determination of the City Council that approval of the Grant Agreement for redevelopment of the Development Property by Nia Neighborhoods Opportunity Zone Fund, LLC, according to the terms and conditions set out in the Grant Agreement, is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1 . That the Grant Agreement between the City of Dubuque and Nia Neighborhoods Opportunity Zone Fund, LLC is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Grant Agreement on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Manager is authorized to take such actions as are necessary to comply with the terms of the Grant Agreement as herein approved. Passed, approved, and adopted this 7th day of August, 2023. Brad M. Cavan, , Mayor Attest: Trish L. Gleason, Assistance City Clerk 2 GRANT AGREEMENT FOR THE DOWNTOWN REHABILITATION GRANT PROGRAM BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND NIA NEIGHBORHOODS OPPORTUNITY ZONE FUND, LLC THIS GRANT AGREEMENT (the "Agreement"), dated for reference purposes the - day of August, 2023, by and between the City of Dubuque, Iowa a municipality established pursuant to the Code of Iowa ("City") and acting under the authorization of Chapter 403 of the Code of Iowa (the "Urban Renewal Act") and Nia Neighborhoods Opportunity Zone Fund, LLC ("Grant Recipient"). WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has undertaken a program for the development and redevelopment of an area in the city known as the Greater Downtown Urban Renewal District(the"District"), an urban renewal area established pursuant to the Urban Renewal Act, and in connection therewith has established the Downtown Rehabilitation Grant Program (the "Program"); and WHEREAS, Grant Recipient intends to complete the renovation and rehabilitation of a building located on property within the District locally known as 1398 White Street, Dubuque, Iowa (the "Development Property"), legally described as: The North 24.9 feet of Lot 482 in the City of Dubuque, Iowa, according to the United States Commissioner's Map thereof. which will include various improvements to the building, as more specifically detailed in Grant Recipient's application to the Program (the "Project"); and WHEREAS, Grant Recipient has applied for a Housing Incentive Grant, a Facade Grant, a Planning & Design Grant, a Financial Consultant Grant, and a Community Catalyst Grant for the Project from City under the Program in amounts collectively up to One Hundred Fifty-Five Thousand Dollars ($155,000) (the "Grant"), the terms of which are set forth in this Agreement; and WHEREAS, the City Council believes that the development of the Development Property pursuant to this Agreement and the fulfillment generally of this Agreement, are in the vital and best interests of City and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. NOW THEREFORE, IN CONSIDERATION OF THE PROMISES AND OBLIGATIONS OF THE PARTIES HERETO, EACH OF THEM DOES HEREBY COVENANT AND AGREE WITH THE OTHER AS FOLLOWS: SECTION 1. MINIMUM IMPROVEMENTS. 07252023ba1 1.1. Required Minimum Improvements. Grant Recipient shall improve the Development Property as follows: Creation of two rental housing units and fa�ade improvements including rehabilitation of doors and windows (the "Minimum Improvements"). The Minimum Improvements shall be completed in substantial conformity with the scope and scale described in Grant Recipient's Application Design Letter attached hereto as Exhibit A and Grant Recipient's Application to the Program, attached hereto as Exhibit B. 1.2. Timing of Minimum Improvements. Grant Recipient shall begin construction of the Minimum Improvements by September 1, 2023 and complete construction of the Minimum Improvements by August 1, 2025. City shall determine in its sole discretion, following an inspection by City's Building Services Department and/or Planning Department, when the Minimum Improvements have been completed. In order to be considered completed, the Minimum Improvements must be constructed in accordance with the terms of this Agreement, in compliance with the regulations of the Program, and in substantial conformity with Grant Recipient's Application Design Letter and Grant Recipient's Application to the Program. 1.3 Certificate of Completion. Promptly following the request of Grant Recipient and upon determination by the City Manager that the Minimum Improvements have been completed as required by this Agreement, the City Manager shall furnish Grant Recipient with a Certificate of Completion in recordable form which shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in this Agreement. 1.4. Construction of Minimum Improvements. Grant Recipient shall complete all work with respect to construction of the Minimum Improvements in conformance with all requirements of the Program, this Agreement, and all federal, state, and local laws, ordinances, and regulations in effect at the time that building permits are issued. 1.5. Insurance. (1) Grant Recipient shall provide and maintain or cause to be maintained at all times during the process of constructing the Minimum Improvements and at its sole cost and expense builder's risk insurance, naming City as loss payee, written on a Completed Value Form in an amount equal to one hundred percent (100%) of the building (including Minimum Improvements) replacement value when construction is completed. Coverage shall include the "special perils" form and Grant Recipient shall furnish City with proof of insurance in the form of a certificate of insurance. (2) Upon completion of construction of the Minimum Improvements and up to the Termination Date, Developer shall maintain, or cause to be maintained, at its 2 cost and expense property insurance against loss and/or damage to the building (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the building (including the Minimum Improvements), naming City as loss payee. Developer shall furnish to City proof of insurance in the form of a certificate of insurance. (3) The term "replacement value" shall mean the actual replacement cost of the building with Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. (4) Grant Recipient shall notify City immediately in the case of damage exceeding Fifty Thousand Dollars ($50,000.00) in amount to, or destruction of, the Development Property or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (the "Net Proceeds"), shall be paid directly to Grant Recipient as its interests may appear, and Grant Recipient shall forthwith repair, reconstruct and restore the Development Property to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, Grant Recipient shall apply the Net Proceeds of any insurance relating to such damage received by Grant Recipient to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property, as its interests may appear. Grant recipient shall complete the repair, reconstruction and restoration of the Development Property up to the amount of the Net Proceeds of insurance received by the Grant Recipient. 1.6. Closinq. The closing shall take place on the Closing Date which shall be the day of , 2023, or such other date as the parties shall agree in writing but in no event shall the Closing Date be later than the 1 st day of September, 2023. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditions of closing shall have been satisfied or waived. 1.7. Conditions to Closing. The closing of the transaction contemplated by this Agreement and all the obligations of Grantee under this Agreement are subject to fulfillment, on or before the Closing Date, of the following conditions: (1) Grant Recipient shall have the right to terminate this Agreement at any time prior to the consummation of the closing on the Closing Date if Grantee determines in its sole discretion that conditions necessary for the successful completion of the Project contemplated herein have not been satisfied in Grant Recipient's sole 3 discretion. Upon the giving of notice of termination by Grant Recipient to City, this Agreement shall be deemed null and void. (2) Grant Recipient and City shall be in material compliance with all the terms and provisions of this Agreement. (3) Grant Recipient shall have furnished City with evidence, in a form satisfactory to City (such as a letter of commitment from a bank or other lending institution), that Grant Recipient has firm financial commitments in an amount sufficient, together with equity commitments, to complete the Minimum Improvements (as defined herein) in conformance with the Design Letter (as defined herein), or City shall have received such other evidence of Grant Recipient's financial ability as City in its reasonable judgment requires. 1.8. City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Developer. SECTION 2. FURTHER COVENANTS OF GRANT RECIPIENT. 2.1. Operation of Development Propertv; Housinq Vouchers. For and in consideration of the Grant offered under this Agreement, during any operation of the Development Property as a rental residential property, Grant Recipient shall accept, or cause to be accepted, applications from prospective tenants with housing vouchers issued under the U.S. HUD's Section 8 voucher program or a similar program who are otherwise qualified prospective tenants. Grant Recipient shall not deny any tenant a lease based on a public assistance source of income. A public assistance source of income means income and support derived from any tax supported federal, state or local funds, including, but not limited to, social security, supplemental security income, temporary assistance for needy families, family investment program, general relief, food stamps, and unemployment compensation, housing choice voucher subsidies and similar rent subsidy programs. This Section 4.2 shall survive the termination of this Agreement. If Grant Recipient, or Grant Recipient's successors or assigns violates the requirements of this Section 2.1 as determined by the City Manager in the City Manager's sole discretion after the termination of this Agreement, Grant Recipient or Grant Recipient's successors or assigns shall not be eligible for any City financial assistance programs. 2.2. Reportinq Requirements. Grant Recipient shall prepare, review and sign the reports specified below in the form and content specified. 1. By Project Mid-Point: A report describing work completed, including photographs documenting work that has been completed; 4 2. Within 60 Days after the Project completion date: a report documenting completion of the Project, including photographs of the completed Project. 2.3. Real Property Taxes. Grant Recipient shall pay or cause to be paid, when due, all real property taxes and assessments payable with respect to all and any parts of the Development Property. 2.4. No Other Exemptions. Until the Termination Date, Grant Recipient agrees not to apply for any state or local property tax exemptions, except for an application for urban revitalization tax abatement under lowa Code Chapter 404 and 427, which are available with respect to the Development Property or the Minimum Improvements located thereon that may now be, or hereafter become, available under state law or city ordinance during the term of this Agreement. 2.5. Non-Discrimination. In carrying out the Project, Grant Recipient shall not discriminate against any employee or applicant for employment or tenant upon the basis age, color, familial status, gender identity, marital status, mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation. SECTION 3. CITY PARTICIPATION. 3.1. Fa�ade Grant. City agrees to provide a matching (1:1) grant not to exceed Ten Thousand Dollars ($10,000) to reimburse Grant Recipient for documented costs that improve the overall appearance of the Development Property, provided the Project as completed meets the criteria on the terms and conditions set forth in the attached Design Letter. 3.2. Planning and Design Grant. City agrees to provide a matching (1:1) grant not to exceed Ten Thousand Dollars ($10,000) to reimburse Developer for documented predevelopment costs, architectural and engineering fees and other authorized soft costs associated with the rehabilitation of the Property on the terms and conditions set forth in the attached Design Letter. 3.3 Financial Consultant Grant. City agrees to provide a matching (1:1) grant not to exceed Fifteen Thousand Dollars ($15,000.00) to reimburse Grant Recipient for documented costs related to hiring a financial consultant to evaluate the Project's feasibility on the terms and conditions set forth in the Program. 3.4. Downtown Housing Incentive Grant. City agrees to provide Grant Recipient a grant in an amount equal to Ten Thousand Dollars ($10,000) for each rental unit in the Development Property for which a Certificate of Completion from the City of Dubuque is issued, but not to exceed Twenty Thousand Dollars ($20,000). 3.5. Communitv Catalvst Buildinq Remediation Grant. City agrees to provide a grant not to exceed One Hundred Thousand Dollars ($100,000) to reimburse Grant Recipient for documented costs related to the deconstruction and rehabilitation of the property 5 including updating of the mechanicals to meet code and capacity, removing asbestos in flooring and walls, remediating water damage, roof and masonry repairs, replacing appliances, furniture, fixtures in residential areas, installing a secure building access system, and outside lighting. 3.6. Pavment of the Grant. The Grant shall be payable as follows: (1) Any and all portions of the Grant shall be funded solely and only from available Program funds; (2) Prior to the release of any grant funds, (i) Grant Recipient shall have submitted documentation of its eligible expenses under the corresponding grant program, and (ii) City shall have issued a Certificate of Completion; and (3) The Grant funds shall be disbursed directly to Grant Recipient. SECTION 4. EVENTS OF DEFAULT; REMEDIES. 4.1. Events of Default Defined. Failure by Grant Recipient to substantially observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement shall be an "Event of Default." 4.2. Remedies on Default bv Grant Recipient. Whenever any Event of Default occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to Grant Recipient of the Event of Default, but only if the Event of Default has not been cured within thirty (30) days following such notice, or if the Event of Default cannot be cured within thirty (30) days and Grant Recipient does not provide assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may suspend its performance under this Agreement, including suspension of the payment of any installment of the Grant to Grant Recipient, until it receives assurances from Grant Recipient deemed adequate by City, that Grant Recipient will cure its default and continue its performance under this Agreement; (2) City may terminate this Agreement; or (3) City may take any action, including legal, equitable, or administrative action, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 4.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair 6 any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 4.4. No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. SECTION 5. MISCELLANEOUS. 5.1. Conflict of Interest. Grant Recipient represents and warrants that, to its best knowledge and belief after due inquiry, no officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure, or who is in a position to participate in a decision-making process or gain insider information with regard to the Project, has had or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work or services to be performed in connection with the Project, or in any activity, or benefit therefrom, which is part of the Project at any time during or after such person's tenure. 5.2. Grants, Notices, and Demands. A grant payment, notice, demand, or other communication under this Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (1) In the case of Grant Recipient, is addressed and delivered personally to Nia Neighborhoods Opportunity Zone Fund, LLC, 251 Hidden Oaks Court, Dubuque, IA 52003; Attn: Yindra T. Dixon; and (2) In the case of City, is addressed and delivered personally to the City of Dubuque at City Hall, 50 W. 13th Street, Dubuque, IA 52001; Attn: City Manager and City Attorney. or to such other designated individual or officer or to such other address as any party shall have furnished to the other in writing in accordance herewith. 5.3. Titles of Sections. Any titles of the several parts and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. 5.4. Definitions. All capitalized terms used herein shall have the meaning defined herein, unless a different meaning clearly appears from the context. 5.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 7 5.6. Governinq Law. This Agreement shall be governed and construed in accordance with the laws of the State of lowa. 5.7. Amendment. This Agreement may not be amended except by a subsequent writing signed by the parties hereto. 5.8. Successors and Assiqns. This Agreement is intended to and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 5.9. Termination Date. This Agreement shall terminate and be of no further force or effect December 31, 2030, unless the Agreement is terminated earlier by the other terms of this Agreement. 5.10. No Third-Party Beneficiaries. No rights or privileges of either party hereto shall inure to the benefit of any landowner, tenant, contractor, subcontractor, material supplier, or any other person or entity, and no such landowner, tenant, contractor, subcontractor, material supplier, or any other person or entity shall be deemed to be a third-party beneficiary of any of the provisions contained in this Agreement. 5.11. Indemnification. Grant Recipient hereby agrees to defend, indemnify, and hold harmless City, its officer and employees, against any and all claims of any kind made by Grant Recipient or any third party relating to or arising out of this Agreement, including costs, expenses, or attorneys' fees. 5.12. No Assiqnment; Non-Transferability. Following the execution of this Agreement and until the Termination Date: (1) Grant Recipient represents and agrees that it will not transfer, convey or make any assignment of any of its rights or interests in the Development Property, Minimum Improvements, or this Agreement to any other party unless: (i) the transferee partnership, corporation, or individual assumes in writing all of the obligations of Grant Recipient under this Agreement, and (ii) City consents thereto in writing in advance thereof; and (2) Grant Recipient represents and agrees that it will not assign its rights or interests in this Agreement, including the Grant, to any other party unless City consents thereto in writing in advance thereof. CITY OF DUBUQUE, IOWA NIA NEIGHBORHOODS OPPORTUNITY ZONE FUND, LLC 8 By: , By: Brad M. C�aran_ , Mayor ! Yi r T. Dixon, Organizer ATTEST: Adrienne N. Breiffekier, City Clerk--- Trish Le Gleason, Assistant City Clerk 9 EXHIBIT A DESIGN LETTER Dubuque Planning Services Department THE CITY OF � City Hall - 50 West 13t" Street AI�-1V�e"e°Ei� Dubuque, IA 52001-4845 �T TR � � � (563) 589_4210 phone �J IJ � I I I (563) 589 4221 fax zan>>zaiztzoi3 (563)690-6678 TDD Masterpiece on the Mississippi Z017*2019 planninqCc�cityofdubuque.orq MEMORANDUM TO: Jill Connors, Economic Development Director FROM: Travis Schrobilgen, Assistant Planner` ,�_ �`>>^ SUBJECT: Fa�ade Grant: 1398 White Street Applicant Yindra Dixon, Nia Neighborhoods Opportunity Zone Fund LLC DATE: July 12, 2023 Introduction This memorandum forwards the requested design review for work funded with a Fa�ade Grant for the property located at 1398 White Street. Backqround The City of Dubuque Architectural Guidelines, the Secretary of the Interior Standards for Rehabilitation and applicable Technical Preservation Services Preservation Briefs published by the National Park Service (NPS) apply to this project. The collection can be found at the NPS website. Discussion The scope of work depicted and described in the drawings, application, and subsequent answers to questions during review meet the Architectural Guidelines and the project is recommended for approval as submitted and conditioned. Conditions reqardinq the work include: • Structural and protective repair of masonry with in-kind brick/stone replacement as necessary, • Masonry work follow the recommendations in NPS Preservation Brief#2. • Preservation Brief#6 Dangers of Abrasive Cleaninq. • Fa�ade: The retention and refurbishing of the original fa�ade is ideal. Please work with Planning Services Staff regarding finalized details and materials. • Entrance door systems: Replace existing entrance doors with new doors as shown on rendering, with color complementary to the window color. • Windows: Shall be the same size, shape, style and material as original. Work with Planning Services staff for final design. (Windows shall be wood or aluminum clad wood windows.) • Signage for the structure: Any new signage or changes to existing signage will need approval by Planning Services when the applicant is ready. Review is for both compliance with the City's code and design guidelines. Applications can be made to the Inspection & Construction Services Division. Please note that all work completed must have relevant permitting and permission, working with the Inspection and Construction Services Division (formerly Building Department) and Engineering Department as necessary. • Seek permitting through the Engineering Department as necessary for any construction activity that may encroach upon the public right of way. Requirements The project, if done in accordance with the described scope of work and drawings will meet the applicable guidelines and standards and is recommended for approval in terms of design review. Any deviation from the approved scope of work must be reviewed and approved by the Economic Development and Planning Services Departments prior to initiation. It is the property owner's responsibility to read and understand the terms of approval as well as ensure compliance with the project requirements. It is the property owner's responsibility to obtain the necessary building permits prior to starting work. It is the property owner's responsibility to ensure all contractors understand and properly execute all expectation of the project. Failure to comply with the approved scope of work will result in forfeiture of all funding. ENCLOSURES: Applicant's compiled materials CC: Mike Belmont, Building Official Mike Seivers, Inspector Jeff Zasada, Inspector Wally Wernimont, Planning Services Manager 2 Dubuque Economic Development Department THE CITY �F � 13001vlain Street Dubuque,IA 52001-4864 111•Al1E�ICa CEIy Office: (563)589-4393 �� � ��� � TTY: (563)690-6678 � http://www.cityofdubuque.org � Mas�erpiece on the �ississippi zai�*zaig City of Dubuque, lowa Application for powntown Incentive Programs Name of Applicant (Developer/Company): Address of Proposed Project: Contact Name: Address: _ City/State: Zip: Phone: Email: Date of Birth: Total Project Cost: $��o,000 Estimated Start Date: — Estimated Completion Date: With whom has the Applicant discussed details of this project at the City of Dubuque? Check each of the Incentives for which you are applying: A.) Downtown Housing Incentive ( ) B.) Downtown Rehabilitation Grant ( ) ( ) Fa�ade Grant ( ) Financial Consultant Grant ( ) Planning and Design Grant C.) Tax Increment Rebate or Tax Abatement ( ) Please Include Proof of Building Ownership as Attachment A You may use the following site as a resource for providing this information: https://beacon.schneidercorp.com/ If Applicant is not building owner, you must provide proof of building owner's permission to proceed with project as part of Attachment A: If the owner is a for-profit or non-profit organization, you must provide a resolution adopted by the Board of Directors which authorizes both the project and the application attached with the Minutes of the Meeting when it was adopted. Please Include as Attachment B Does Applicant own or have ownership interest in other Properties in Dubuque? ( )Yes ( )No If yes, please list addresses: 1 Dubuque Economic Development Department THE CITY �F � 13001vlain Street Dubuque,IA 52001-4864 111•Al1E�ICa CEIy Office: (563)589-4393 �� � ��� � TTY: (563)690-6678 � http://www.cityofdubuque.org � Mas�erpiece on the �ississippi zoi�*zox9 Do the above properties comply with all applicable City of Dubuque ordinances and regulations, including but not limited to: Housing, Building, Zoning, Fire, Health and Vacant &Abandoned Building regulations? ( )Yes ( )No *Grant Recipient must complete all work in conformance with all requirements of the Program, this Agreement, and all federal, State, and local laws, ordinances, and regulations. Please list all sources of funding and financing for this project besides the requested grants, and whether the sources are already secured (i.e. Historic Tax Credits, Grants, IEDA Incentives). Current Physical Condition of the Building -Written: P/ease Include up to 3 Current Photos as Attachment C Proposed Modification of Building/Intended Improvements -Written: P/ease Include Rendering/Drawing as Attachment D Community Benefit/Impact of Project (how will the project further the revitalization of downtown): If additional space is needed, p/ease include as Attachment E 2 Dubuque Economic Development Department THE CITY �F � 13001vlain Street Dubuque,IA 52001-4864 111•Al1E�ICa CEIy Office: (563)589-4393 �� � ��� � TTY: (563)690-6678 � http://www.cityofdubuque.org � Mas�erpiece on the �ississippi zo�i�*zoxg A.) Downtown Housing Incentive Program* *Grant Funds will be disbursed upon receipt of certificate of occupancy for all units in the project. **The Rental Property Owner/Property Manager will be required to accept Housing Choice Vouchers (HCV) provided by the U.S. Department of Housing and Urban Development (HUD) from qualified prospective tenants for the duration of the forqivable loan aqreement. How many units are being created? 2 Housing units created must be greater than 650 Square Feet. A minimum of 2 units are required for eligibility, and a maximum of 75 units are eligible. (housing units that have been vacant for over three years are considered new units) Amount of Assistance Requested (No more than $10,000 per unit is eligible) � $20,000 Does the project have bank financing? ( )Yes ( )No If yes, what financial institution? P/ease Include Letter of Commitment from Financial Institution as Attachment F A 10-year pro forma must be attached if requesting housing grant. P/ease include as Attachment G Does the pro forma show a developer's fee? ( )Yes ( )No If yes, over what period of time will this fee be paid? Will residential units have any income restrictions? ( )Yes ( )No If yes, how many residential units will have income restrictions? (This could be 0% to 65% of the rental units can have a restriction of 80% area median income.) Is a Floor plan for all units attached? Please attach as Attachment H ( )Yes ( )No 3 Dubuque Economic Development Department THE CITY �F � 13001vlain Street Dubuque,IA 52001-4864 111•Al1E�ICa CEIy Office: (563)589-4393 �� � ��� � TTY: (563)690-6678 � http://www.cityofdubuque.org � zoo�•2oi2•zo�� Mas�erpiece on the �ississippi za��*�a�� B.) Downtown Rehabilitation Grant** **Grant Funds will be disbursed upon completion of work, documentation of costs, and an inspection of completed project. Disbursements are at a rate of$.50 for each $1.00 of costs incurred, up to maximum amount of grant committed. Written requests for payment must be submitted to the Economic Development Department. **Paid invoices and/or cancelled checks will be required to confirm expenditures. Professional drawings and scope of work showing dimensions, architectural details, and labels must be attached to the application. Please include as Attachment 1 Planning and Design Grant Estimated costs for planning and design � How much assistance is the project requesting? � Fa�ade Grant Estimated costs for fa�ade improvements � How much assistance is the project requesting? � Will the project include repointing or tuck pointing? If yes, a mortar analysis sample may be required. The sample would be a reimbursable expenditure. ( )Yes ( )No Do existing signs on the project property comply with City Zoning regulations and design guidelines? ( )Yes ( )No ( )N/A If the above answer is no, or the Applicant is proposing new signs, please describe the design materials and colors that will be used on the sign face, how the sign will be displayed, and any lighting proposed. With whom has the Applicant discussed details of this project in the City of Dubuque Planning Department? This is mandatorv. 4 Dubuque Economic Development Department THE CITY �F � 13001vlain Street Dubuque,IA 52001-4864 111•Al1E�ICa CEIy Office: (563)589-4393 �� � ��� � TTY: (563)690-6678 � http://www.cityofdubuque.org � Mas�erpiece on the �ississippi zai�*zaig Has Applicant reviewed the City's Design Review Guidelines at http://cityofdubuque.org/1295/Design-Guideline ? ( )Yes ( )No Financial Consultant Grant Estimated costs for financial consultant services � How much assistance is the project requesting? � Bids: Please attach bid(s) for ALL proposed work as Attachment J Certificate of Insurance: Please attach a certificate of insurance for the individual/company bidding the work as Attachment K C.) Tax Increment Rebate or Tax Abatement Please contact the Economic Development Department to discuss tax incentives at (563) 589-4393. 1 certify that 1 am applying for the above incentives before having begun the eligible work, and project work is scheduled to start in fewer than 6 months of the date of this application. Signature\ � Date: To be considered for approval, a fully completed application with attachments and exhibits must be submitted via one of the following. • Website: https://www.cityofdubuque.orq/113/Facade-Grant • email: econdev(c�cityofdubuque.orq • drop off: Economic Development Department, 1300 Main Street, Dubuque, lowa 52001 • US Post: Economic Development Department, 1300 Main Street, Dubuque, lowa 52001 5 I� � Attachment Index • Attachment A- Beacon proof of ownership • Attachment B - Board of Directors Minutes and resolution (NOT INCLUDED) • Attachment C- Current photos (up to 3) • Attachment D - Rendering/Drawing • Attachment E -Additional space for impact • Attachment F - Letter of Commitment from DB&T • Attachment G - 10-year ProForma • Attachment H - Floor Plan for each unit • Attachment I - Professional Drawings & Scope of Work (NOT INCLUDED) • Attachment J - Bids for Proposed work I2�Z2�22'3'�2 PM Seacnn-Dubuq=se Caunty,IA-I�aroei Report: Iff244290pF :�sg£��CC31� � Du�uque Caun�y, IA 5ummary ParrellD 10244290q1 , � - Alternatelb 4-1-25-1 - � Pro�er'tY+4ddress 1398WHITE5T ❑L18UQUElA52d01 �- SeclTwplitng MIA ` Srief Tax descriptian N 24.9'N115 CiTY LOT 482 — �- • `:� {r•Jot�:�:et�o I;::�_^:+�:�.fc:••;r!.�_��i�,e�,r;'i i f)eed Baoklpage 2022-iO4&0{8/191202��c •— �^`-�_ - __ � GantractBooklPage � Grass Acres O.pp � � �� � NetA�res o.00 — �-- Class C-COMMERCIAL;M-Residential(MRR3+) ` '���` 9 ;�.i.,'::I'•-ii=i.=:`•.:.'�..p:r�:r�:i;=5��:il���.f�•:a:Lr,�n=.us.��j fui�nnii:�. �w ❑istricf �UBA-DUBUQUE CITYIpBQ COMM SCH � Schoolaistrict pUBIlQLlECDMM.SCHDOLdI5�f .� ,� � ^ �--- -- C�WW►7ECS Deer!Holder ^Iia�fJe i`I-�L��rhoods�.�.7r:uisi; ?n��e Fund LLC ;1�_. 1�-r•Dab:SCT Ouhuqus IA 52002 Con[raet Na3d er MailingAddress Nia Pfeigh6orhoods Opportunity2one Fund LI,.0 25]Hidden Oaks CT Du6uque IA 520071 Land l.at Area 0.06 Aaes;2.44a SF Commercia�Buildings Building 1; pFfice-Generaf wlApart Uppers,Salid Britik-8",2 5tory,Built-19(]O,1q16 SF$smt-lOh2 S�, HVAC-Hot Water,Rc�of-qsph.5 hi nglel WoQd pk,Cond i t ion-Be low hlarm2l Adjustments: AIC-deduct,1416 SF RIC-no uppe r,1416 SF Additiort I: Warehause[Storage=,C'$ik ar Tile-8",1 Story,k3uilt-295p,552 SF 8smt-0 SF HVAC-.Rvof-M etai/Frame{r 50'Wi dey Acijustments: Heaf-none.552 SF Liner-[ompo SSFSAJ,552 SF P�umfcin8' 3-3-Fixture6athroom2-Sink-Kit�hen Bui3ding Extras: #1-Ooor.O.H.-bpor-Power,8 Ft Wide,8 FY High,1950,Q[yl 5ales SaleCpnditian- Multi Date Seller Suyer Recording NIfTC Type Parcel Amount 811h12022 OUBUQUEgANIC&TRt15T NIAfYE[GF{BORHOQpS�PPORTlJfVi7YZ�NE 22-204$p Normal Deed g�as.00a.00 CqMPANY FUhla.LLC 91I512066 CO(r Unuseahle5afe- �eed $122.500.pp 1A471 other 2/24/2006 �001 lJnuseahle5ale- �eed $p_pp 218i Other Includes sales on or aSter 111120Q3 Valuation 202a 2a2i 2a2o Cldssiftcati4n Commerciall Cammerciall Cammertiall Residerttial{Mr R3+J Rcsidentia!{Mr R3+} Residentia![MrR3+] + AsseSsedLandVafue $8,96a $8,96� $8,9fi0 + AssessedBuildingValue 552.737 $52,737 352.737 + Assessed f]weiEing Value $32.323 $32.3Z3 $32,323 = GrossAssessedValue $q�Qz� $44,a26 $94,020 - ExempY Value �� $❑ � = NetAssessedValuc $44,OZ0 $94,02a $94,02Q https:Nhexcaa.s�hneidcrcarp.camlApplication.aspx?A�sID=93&LayerID=929&Pa�c'IypclLj�pa�eIg=j938z{�=.]29{r3g1gp5X�KeyVa�ue=t02q429DQI# �13 I2f2Zl22,3�52 PM $eacon-Dubuque County,IA-Parcel Report: 102442g(1p1 Taxation zoai ZaZa �r�oz2-zo7s Pay 2021-2022 = TaxahleValue $75,240 $76,579 x Lery Rate(per$1p00 af value) 3fl.55266 31.70847 = Gross Taxes Oue $2,298.78 $2,428.20 - Credits f$538.83] ($62D.87) = Net Taxes pue $1,5d4.Op $2,806.00 �QUflty�C�3SU I'p 1'�OkQS SA Fund 2017Q120 Green Alley Paid in Fuil At City Tax Histary Year Due Date Mwunt Aaid �ate Paid Receipt 2021 March2Q23 $830 Yes 8/141Z022 101349 September2022 $830 Yes 8/19/2022 2020 MarchZ022 $903 Yes 912a12�21 SQ4229 Septem6er 2Q21 $9fl3 Yes 412fl12p21 2019 Marr�s2022 $S29 Yes 9/17/2020 70821d Septemher2020 $929 Yes 911712p20 Photos - . . r �- -�.v - _ - � �� � �'�.. -- a � � � r _ � y � z, �€ � rr �� - � .��:, �. � - �e ' , � �• ..•, 4l" ^^� � k � � � y � � � � _ . . . . a .. . ."+wr+i r-• .r�yj SR.: .��....... ..... . . . r^'^n++�wy�w..i�.1..+w.�i....,..l"i'walA � �.. Si�ow DeedlCflntract Shoe•a€]eedlCen;k s�t $kBxCIiSS https;llbcaoon.schneidcrc:orp.comlApplication.aspx?AppII7r93&LayerID=9298tF'�ageTypelIJ--__q&Pagei1�543&Q�I29U3$1945&KeyVxluc=l�2<kt29(]Ull} 213 12l22+22'3.52 PM $ea�on-D�huque County,It1-Parcel Repnrt: 1d244290p1 �,�-rs c 23 gLK (552] za s,.�s e er��c [taie� 59 SiC=[Ch�yr 14'6M'.:arr,3VYS�Gf:.C�•^,-. 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I ` 1 Y _ _ _ _' _, - _._- � � ��'L Y �1�� � y � J r�:--��i '✓` _ 1`�--^ ___�-, ��� _ . �„� ��� R� - -� � z �!,� � � � i � ::�:. _ _ � � � -T � � � � � � � -`-- � -=o-�- - - � :�-=---�----" r_ __Y �- � �- � _ �f � _ � , , � � � �� �1 ,� t= $ � ��... � � I\ - � � - �..� � �� �� �r.+ �r� - I�i { � �i �r �' � �ir�i� �� �.�� .�d _ �rr -� } ��� - rr� �J�� �_. . �� +� �� f� �� _ �� �:� � � �. � ` ;� - � �� .�.�.�.� . �_ .�..�.�.- � � ___� - �- —� � � �,� � ,� ,, � ' __----___--_ ------- , _ —� ----__ ��� ,;� -_. �_ -_ � ,, _ � �-- � _____ - ,, _ _ . _ --� .. _ � � � _ , _ a, _ _ - _ -__ i y, . _ - " � � � ,; ---�� --- ��---r----------- -- -- � � 1 . � ��� � �;'�- :�,�. �� � �-- -� �� � ' � � � � � �c r �■ o���� � - - I � _ �J _� _. . �. _ 'f _ � � - � --------�_ -- f --- � N�y 4 �� � -.. --- i--- -- � � _� �' �� � � �"� -- �� _ -. � 'i h � � �` - R� � ::, ,: ;,;�- __ - _ - Y� � � ` � - �. � � � � Project Description The City of Dubuque in partnership with Nia Neighborhoods will rehabilitate an underutilized, blighted property at 1398 White St. in Dubuque, lowa. The property is located in Dubuque's Washington Neighborhood and just blocks from the Central Ave. Corridor— both focus areas of reinvestment by the City and public/private partners. On a highly visible corner of a main artery street that connects downtown neighborhoods, the property is within walking distance from critical community services and amenities including City Hall, Steeple Square (offering childcare, job training, and supportive housing), several financial institutions, and the thriving Historic Millwork District. As one of few existing buildings in the area with a commercial lower level, the City has prioritized the rehabilitation of the structure in order to catalyze continued development and investment in a re-emerging, disadvantaged neighborhood. The completed project will advance key City development goals, invest in an African-American-owned business that will operate on the first floor, and create attainable housing units in the upper stories. As part of an intentional and equitable community development strategy, the property was recently purchased by the developer—an African American woman-led business: Nia Neighborhoods Opportunity Zone Fund. While the area has been designated as an Opportunity Zone for many years, the City has experienced little interest from investors or developers using the structure as a tool for investment. Nia Neighborhoods, committed to building community through equitable access to wealth-building opportunities, will offer an opportunity to demonstrate a successful model of development within an Opportunity Zone. Because these particular investments require a horizon of ten years, the investor must keep all proceeds from transaction within the fund for a minimum of 10 years to realize tax shelter benefits. This reduces risk to the City, ensuring that projects will engage developers with long-term commitment to the community. The project will: • Serve as a model of economic development using layered financing tools including state grants, Historic Tax Credits, public/private investment, City grants and Opportunity Zone designation • Reduce slum and blight and increase property values • Create jobs in Dubuque's African American community • Invest in an African American-owned small business • Create attainable housing Local Drivers The City of Dubuque has prioritized and invested hundreds of millions of dollars into its urban center neighborhoods over the past two decades. The property, located in the Washington Neighborhood, is centrally located between two key areas of investment: the Millwork District, an urban live-work community with high quality neighborhood amenities, and the Central Ave. Corridor- a newly prioritized area of investment. Additionally, the property is blocks from Steeple Square - a nonprofit that worked with public and private partners to invest $16M into a vacant former church campus to create a thriving hub of services, and a destination event center. 1398 White St. would serve as a connector between key neighborhoods and drive people from outside the surrounding community to take advantage of these amenities. Key local drivers: • The City has designated the area as an Opportunity Zone to encourage investment • The project aligns with housing and economic development priorities including creation of housing, updating housing stock and attracting new businesses • The City has few areas that serve as a "third place" for residents — a key factor in urban renewal and development to encourage a live-work community • The project would be home to the first and currently, only, commercial space that would house a barbershop catered to the African American community and communities of color • The completed project opens the door for entrepreneurs of color who experience significant barriers and limited entrepreneurial ecosystem resources • The City strives to be a community of choice. When local amenities are absent, residents seek them out in neighboring metropolitan areas (Madison, Davenport, Galena, Cedar Rapids) driving dollars out of the community • The City is committed to improving equity— particularly through supporting African American entrepreneurs and Black-owned businesses, of which there are few This project is an opportunity for the City to develop critically-needed program support to drive investment for micro development and developers of color. Community Catalyst grant funding would provide an opportunity to evaluate the needs of interested developers and further indicate what specific supports are needed for developers of color. Two developers of color are working on historic activation projects downtown. Growing participation from both the residents of color in communities needing investment and from developers of color outside of the community, would accelerate revitalization of divested areas. While community members can apply for funding through a Main Street grant, it is impractical to attempt to meet high-impact economic development goals by completing only one building per year. This particular project will catalyze development and serve as a model in supporting microinvestors and developers of color. Location Selection 1398 White Street is in the historic Washington Neighborhood which has been a major focus for reinvestment efforts by the City for the past decade. Its historic architecture, central location, and wide range of housing stock provide key assets to build upon. Challenges of housing and building conditions, a concentration of distressed properties and a need for education, services and training have required a coordinated effort between public and private partners to uplift the area —with more than $16 million being invested since 2016. The Washington Neighborhood is a historic district making it eligible to qualify for State Historic Tax Credits, a critical tool for developers. The building is highly visible on the corner of 14�h and White Streets. A few blocks away, the Central Ave. Corridor has been prioritized by the City where the newly established Office of Shared Prosperity and Community Support is under rehabilitation in a historic structure. White Street is a northbound one-way street that serves as the artery into North end neighborhoods. The fa�ade is dilapidated, as is the adjoining duplex— also a property being developed by Nia Neighborhoods. The building has old mechanicals, was experiencing plumbing leaks, and is covered in asbestos flooring. Renovation will improve safety and reduce slum and blight. The project will improve quality of life for residents, and increased traffic to the block will provide the surrounding residents with a greater sense of security. The financial investment in the property will also be a sign to surrounding property owners that investment in their properties will be worthwhile. Upon taking ownership, Nia Neighborhoods Opportunity Zone fund offered space to a local barber who had been providing services in his apartment. Since opening, the barber has added two additional barbers, and attracted two hair stylists who specialize in African American clients. The clientele is diverse, and travels from across the region, from surrounding rural communities and from the five local colleges and universities. The completed project commercial space and upper-level apartments will keep rents low in a neighborhood whose residents rely on affordable rent. 1398 White Street will be a beacon of progress and drive continued development and investment in Dubuque's lowest income census tracts. Key demographics are as follows: 25°/o identify as racial minority 70°/o are renters 14% are unemployed 31°/o of household monthly costs are higher than 30% of income There have been few projects developed in the past few years along this corridor and certainly no consistent development. To reactivate this location will serve as a milestone of development in the community and provides an easily visible resource for residents and visitors. Catalyst Grant Impact Community Catalyst grant funding is critical to ensure successful project completion by a micro- investor African American-owned business. If left unimproved, the expense to renovate to a level that meets current code will be a significant challenge. Built in 1900, the property has failing mechanical systems, outdated plumbing and electrical systems and asbestos on the floors and in the walls. A leaking skylight requires roof repairs. Due to settling and water damage the foundation will need to be stabilized. This particular funding from the State of lowa will protect the building from being condemned and contribute to improving quality of life in a divested neighborhood. Grant funding will specifically support construction costs, representing 70% of the project costs. The City offers some grants that support the planning, design and management of the project, and is committed to contributing 12% of project costs in matching grant funds. The owner is committed to providing 18% of project costs including required match. The opportunity to apply for this particular grant, service providers have offered discounted pricing for the project. Local partners understand the high stakes of this critical project and are willing to invest time into ensuring success. This grant program provides a vital pathway to fill funding gaps. An especially difficult challenge for microdevelopers is the appraised value of a property. It is unlikely to obtain a construction loan that covers the true costs of renovations, and the City does not yet have a revolving loan fund or other resources to achieve success. In order to support and encourage neighborhood micro-development, the City is working to create mechanisms that promote authenticity and local ownership, and invest people and planning resources into building thriving, inclusive live- work communities. The Community Catalyst grant would be that driving force for this project. Project Budget and Contributions The total project budget is $145,000. As required by the Community Catalyst Grant, the City plans to contribute $17,500 in grant funds to the project to cover costs related to architectural design services, fa�ade improvements, historic tax credit consulting fees and financial consulting services for cost and project accounting for the grant. The Economic Development Department offers matching grant funds to owners through the Fa�ade Grant, Planning and Design Grant and Financial Consulting Grant. The property owner plans to contribute $27,500 including the funds required to receive the match for the grants and construction project management fees. The total cost of construction and improvements is $120,000. We will be requesting the maximum amount of the Community Catalyst grant of$100,000. Project City of r��NC� �y Cost Dubuque Owner Building Renovations $110,000 $0 $10,000 FaCade Grant $10,000 $5000 $5000 Planning and Design $10,000 $5000 $5000 Grant Financial Consulting $15,000 $7,500 $7,500 TOTAL $145,000 $17,500 $27,500 Not sure the following is necessary? Or it should be woven into other narrative. I would eliminate the We hope you strongly consider paragraph though. We had identified some additional benefits to the project: • Barbershop is a "sticky" place where people return frequently and have brand loyalty • Has organically become a third place— hosting community events, networking for entrepreneurs and students • Provides information and support for other local businesses, activities and programs - NICC, restaurants, Millwork District, multi-cultural family center • Is a regional asset that supports local communities missing the amenity like Dyersville and rural communities within 30 minutes • Market potential grows each year with new student population from colleges • Catalytic concept is already "Proven" - economic impact, job creation, third space, community connection We hope you will strongly consider inviting the City of Dubuque to apply for the Community Catalyst grant for the instrumental and impactful 1398 White Street project. The community and intangible benefits to this community are large while th /� . � � . ., _. �; . _ _ W, �+r�� LJ •J i3 LJ �l._�a.:. �fi �►1 �I�\ � i� 1 �.�)�I Mar�ch 24, 2023 Alex Dixon, Yindra Cotn�an-Dixon, and NIA Neighborhood 4ppartunity Zone Fund 251 Hidden 4aks Ct. Dubuque, IA 52003 RE: Letter of Support for Financii�g To Whom it May Concern, T�us letter is intended to confirm that AIex Dixon, Yindra Cotman-Dixan, and N�A Neighborhood Opportunity Zo�e Fund have conditional support from Dubuque Bank & Trust for the renavation of property located at 1398 White Street iai Dubuque, IA 52001. Final approval for financin� is subject to full underwriting approval, ap�raisal, title search, and any other pre-cIosing due diligence Dubuque Banlc & Trust deems necessary. If you have any questioils, please don't hesitate to contact me d�rectly at th� infarmation below. Best regards, �[-c/�� � Nicholas Patnim Commercial Team Lead, SVP Dubuque Bank & Tr�,ist (563} 589-2Q74 npatnun@dub�qu�bank.c�m t348CentralAven��e,PO.aox778 I Dubuque,Iowa52D04-Q773I ?563.5B9,2ppf}I :i63.539.218�i�d�U.�97.20QQ I 1398 WHITE 5TREE7I�YEAk pR6FOHMA 24tt l423 ].Ot4 20t5 20tfi 2017 2029 2429 2030 2931 203� L'ummcrical Ren[ 5 2.257 i 5.75G ti 12.W5 L?,3G5 5 12.731 1).713 ti ]].SOE 5 13.9]] 7 1•�.319 14.758 5 15,'41 L�nil2Henc Residential } 2,1�.�J E,34ti� 5 ti,363 L,aB9 $ G,684 LEB�i 5 ;,�91 7,3Q3 ti 7,523 7.?4B $ 7,991 L�ni[3Hun[ Resioential $ 2,1P7 3,3fx? $ 9,fXx7 5,27u 5 4,Sa8 5 9.835 $ 74,130 5 10,�33 5 1�i,7�fi t1,+k9 , 11,a01 L�ni[s Hen[Resioential 5 S 3,WL y 12,f%� 5 L?,360 S 12,731 S 13,713 y 13,59E S 13,9]] $ 14,329 1u,75B 5 15,�41 Property k¢ame S SA50 � 21,350 S ��� S A0,479 $ 41,593 $ 4Z,44A S M.� S A�4 S �.�fi $ AS,NI S �.� 6�.ilning Crst 7 105.� Re�ovati9n Ca�t S S eA,2&z 5 5 $ � 5 � S 5 5 5 � 5 ro'uu. Mortgage Payment 5 7,564 S 5,906 5 5,90fi S 5,406 $ 5,90fi 5 5,906 S 4,90fi S 5,906 5 5,90fi S 5,906 $ 5,90fi Property�axes S S ],660 5 1,660 5 1,660 $ 1,frfi0 $ 3,320 5 3,324 5 3,370 S 3,320 S 3,320 $ 3,329 Irts�ranrn S ],958 S ],959 S 1,958 S 1,859 $ 1,358 S 1,858 S 1,958 S ],958 S 1,858 5 1,85B } 1,958 lJtili[ics S 3,fi� S S-0,a00 S B,f.� S B4ODO S 8,Mr7 S 3.000 S B,� S 9,q10 S B,� 5 3,UD;] } B,GiHf Main[enanrn Enpertses S 5.8� S ].app 5 5,259 5 5150 S 5359 5 5.25Q S 5,259 5 5150 7 5,250 5 5.250 S S,i59 AmFwny Fipnees S i18,I27 $ t13,506 � 22,fi74 5 27.67C $ 27.674 $ IA,3% $ 2A�3A � 24',.13M1 $ 17,iW $ b1,33A � 21,334 Inmrre�Lms j [I17.T77� 5 (9i,15fi) S 16,61fi $ 17,BA5 $ 19A19 $ 18,6Y0 � ]9,649 $ 21,216 $ l2,592 S 24,000 S 73AS0 $�37,704.84� Praje�ted ReM ZOt2 29i3 ZOTA 1075 2026 2017 Z079 2079 7A90 3031 2032 11nii1•Lammerclal j 754 $ 7,000 $ S,GG6 5 1030 $ 1,Ofi1 $ 1,1h13 $ 1,12fi 5 ].159 j 1,194 $ 1,230 $ 1,2L7 llnit2 S 515 $ 515 $ 515 $ 561 $ 557 $ 57e $ 591 $ 609 $ 627 $ 676 � Efi5 llniti $ 525 $ 750 $ 754 S 773 $ 79E $ %20 $ 844 $ 9fi9 $ 396 5 922 � 459 11n1t4 $ $ ],OOG S 1,A70 � 1,030 $ 1,Ofi1 $ 1,043 S 1,126 S ],159 $ 1,194 $ 1,230 � l,dfi7 Garage 23'2"x 23,8„ AS-BUILT DRAWINGS 1398 White Street Dubuque, lowa 52001 Room Bedroom Room Room 11'8"x 17'4" 11'6"x 17'4" 10'1"x 17'4" 13'1"x 17'4" Closet , ; �>- � ° I -, Bath 53 sqft • f�00r1'1 Kitchen �, � 424 sqft �+� �I 23'2"x 14'10" � Laundry � 35 sqft � W/D 00 00 � Down � Bath � � 7'6"x 6'9" Room Kitchen �__�� Room �s Sqft 13�0��X„�,�� 94 sqft � � � 3'1"x5'10' 7,9„X 3,2,� Up � Room � Room 19'6"x ���2°� — �' 13�0°x 13°�° Bedroom c� � X 1 0'2"x 11'1" _ � M FIRST FLOOR SECOND FLOOR � � _ �. .� 1 , . . . _ , . � � . ��., �_ �, . � , � . . - I �� � � w _ei= s�6� — � y�� 1 41 r-> i A 0 - �� v � .,., s'i`.k Cs. - . �� i � - . - - - _� T _ - � � L� � i� � �'� � �� � � _� . �.� _f,, f-, � . I ' � I � + � I �� � I .� I +r � � y , r, � � � �� � Heritage Works PROPOSAL October 31, 2022 Nia Neighborhoods Opportunity Zone Fund LLC c/o Yindra Dixon 251 Hidden Oaks Court Dubuque, IA 52003 Proposed Project: Historic Tax Credit Application for Multiple Properties Heritage Works, Inc. is pleased to submit a proposal to Nia Neighborhoods Opportunity Fund LLC (the "Owner") for assistance in preparing applications for the State of lowa Historic Tax Credit and the Federal Historic Tax Credit for four properties (1240, 1390, 1398 and 1458 White Street) in Dubuque (the "Proposed Project"). Heritage Works' services for the Proposed Project will include, but not be limited to: Federal Historic Tax Credit - Part One • Development and preparation of all necessary components of State and Federal Historic Tax Credit Part 1 application, including but not limited to all necessary schedules and attachments • Photographic documentation of existing conditions • Research and documentation of historical and architectural characteristics including but not limited to date of construction, style of architecture, defining architectural features, significant individuals/events, etc. • Coordination with lowa State Historic Preservation Office (SHPO), National Park Service (NPS), and any other entities necessary for completion of applications • Additional information as necessary for completion of application Lump Sum Part 1 Preparation for All (4) Properties 10 000 *We are pleased to submit the cost for all Part One applications as one lump sum. This will allow for efficiencies in application preparation, but more importantly it will provide a foundation that will allow us to define critical paths and phase the Parts 2 & 3 as you are ready to begin work at each property. If we were to take each Part 1 as a standalone project, we would charge $5,000 each. We are providing this work at a 50% discount from our normal charge. 489 W. 4T" Street I Dubuque, lA 52001 � 563.564.4080 www.heritageworksdbq.com lowa and Federal Historic Tax Credit — Part Two • Development and preparation of all necessary components of State and Federal Historic Tax Credit Part 2 application, including but not limited to all necessary schedules and attachments • Coordination with design team to advise appropriate treatment of historically significant features, assist with historically appropriate design for new construction, develop project narrative, etc. • Coordination with accounting team to develop schedule of expected Qualified Rehabilitation Expenses • Coordination with State Historic Preservation Office, National Park Service, and any other entities as necessary for completion of application • Additional information as necessary for completion of application Lump Sum Part 2 Preparation for All (4) Properties 12 000 *We are pleased to submit the cost for all Part One applications as one lump sum. This will allow for efficiencies in application preparation, but more importantly it will provide a foundation that will allow us to define critical paths and phase the Parts 2 & 3 as you are ready to begin work at each property. If we were to take each Part 1 as a standalone project, we would charge $6,000 each. We are providing this work at a 50% discount from our normal charge. lowa Part 2B Reqistration • Development and preparation of all necessary components of State Part 2B Large Project Registration application including but not limited to all necessary schedules and attachments • Coordination with accounting team to submit schedule of actual Qualified Rehabilitation Expenses • Coordination with State Historic Preservation Office, lowa Economic Development Authority (IEDA) and any other entities necessary for completion of application • Additional information as necessary for completion of application lowa and Federal Historic Tax Credit — Part Three • Development and preparation of all necessary components of State and Federal Historic Tax Credit Part 3 application, including but not limited to all necessary schedules and attachments • Photographic documentation of new construction • Coordination with accounting team to submit schedule of actual Qualified Rehabilitation Expenses • Coordination with State Historic Preservation Office, National Park Service, and any other entities necessary for completion of application • Additional information as necessary for completion of application .�. Heritage Works 489 W. 4th Street � Dubuque, IA 52001 � 563.564.4080 � www.heritageworksdbq.com Lump Sum Part 2B and Part 3 Preparation for All (4) Properties 8 000 *We are pleased to submit the cost for all Part One applications as one lump sum. This will allow for efficiencies in application preparation, but more importantly it will provide a foundation that will allow us to define critical paths and phase the Parts 2 & 3 as you are ready to begin work at each property. If we were to take each Part 1 as a standalone project, we would charge $4,000 each. We are providing this work at a 50% discount from our normal charge. PROPOSAL TOTAL COST FOR ALL ABOVE $30,000 *Assuming all properties and all phases are completed as proposed. As mentioned above, this work is being provided at a 50% discount. Duane Hagerty, CEO of Heritage Works, will oversee the completion all work outlined in this proposal. Fees are lump-sum and will be billed with 50% due to begin each phase and 50% due when each phase is submitted. Concurrent phases will require concurrent deposits. In addition to the fees outlined above, Owner shall reimburse Heritage Works for reasonable and necessary out-of-pocket expenses incurred in the completion of the Proposed Project including, but not limited to, printing and copying fees, archival use fees, delivery fees, supplies as necessary to complete the project and travel expenses. The Owner will agree to have one of its Heritage Works Historic Activation signs displayed at each property in a location agreed upon by the Owner and Heritage Works. Heritage Works, Inc. is pleased to have the opportunity to work with Owner on the Proposed Project. If this proposal is acceptable to Owner, please sign below where indicated. Best regards, HERITAGE WORKS, INC. ���- � � By: Duane P. Hagerty, President and CEO .�. Heritage Works 489 W. 4th Street � Dubuque, IA 52001 � 563.564.4080 � www.heritageworksdbq.com ST�CKLEY MORTON AACHITEGTLTRE November 28, 2022 Yindra Dixon Re: Proposal for Historic Tax Credit Application for 1240, 1390, 1398,and 1458 White Street. Dear Yindra, Thank you for the opportunity to submit this proposal for design services for your four properties on White Street in Dubuque, IA. This proposal is for preparation of the Part 1 (plans only), Part 2,and Part 3 Historic Tax Credit Applications for the above referenced project.Services provided by Stickley Morton Architecture("SMA") as outlined below for NIA Neighborhood ("Client"). A. PROJECT Description: 1240 White Street The building is a two-story brick single family home with rectangular 22'x50'footprint.The building fronts White Street on the west and has a single story covered porch on the west fa�ade.Total gross living area is approximately 1,740 sf. 1390 White Street The building is a two-story brick single family home with rectangular 22'x60'footprint.The building fronts White Street on the west.Total gross living area is approximately 2,496 sf. 1398 White Street The building is two-story brick with rectangular 24'x59'footprint and garage addition with 24'x23'footprint connected on the east.The building fronts a public way to the west(White Street)and north (14t"Street).The building is physically attached to 1390 White Street.Total gross first level commercial area is approximately 1,968 sf including garage.Total gross second level residential area is approximately 1,968 sf. 1458 White Street The building is a story and a half brick single family home with rectangular 24'x52' footprint.The building also includes an open front porch on the west fa�ade, 13'x10'sunroom on the south fa�ade, 15'x16'addition on the east facade and (5)stall garage along the entire width of the lot adjacent the east alley.The building fronts White Street on the west.Total gross living area is approximately 1,552 sf. Stickley Morton Architecture 1 Budget: The total combined construction budget for all properties to be determined by the client.The Client,Architect,and general contractor will work together to ensure project scope and budget are aligned. Schedule: Existing condition plans for Part 1 January 2022 Complete plans for catalyst grant application (1398 White) January 2022 Part 2 application submission End of February Part 2 response from SHPO(4-6 Months) August 2023 (estimated) Start construction August 2023 (estimated) Owner turn over January 2023 (estimated) Part 3 photos&application submission January 2023 Project schedule is tentative. Upon project kick-off Client,Architect, General contractor,and Historic Consultant will work together to confirm and revise dates as necessary. B. SCOPE OF SERVICES 1-BASE SERVICES As-Built Conditions 3D Revit Model SMA will develop an as-built 3D Revit model that accurately represents the current condition of the(4) buildings identified above in the descriptions.Services will include: 1. Field measure of lower level,first level,second level,and attic levels. 2. Field measure of building facades undergoing rehabilitation work. 3. As-built floor plans of: a. Lower Level b. First Level c. Second Level d. Attic Levels(properties with accessible attics) 4. As-built Building Elevations of: a. 1240 White Street West facade. b. 1398 White Street North facade. c. 1398 White Street West facade. 5. Photo key plans. 6. Documentation of any unique architectural features important to the Historic Tax Credit application. Part 1 Historic Tax Credit Application Completed by Heritage Works.SMA will provide as-built floor plans to Heritage Works. Part 1.5 Historic Tax Credit Application (virtual meeting) Completed by Heritage Works.SMA will attend meeting. Part 2 Historic Tax Credit Application Using the As-built Conditions 3D Revit Model,SMA will develop the rehabilitation scope of work and other documentation required for the Part 2 Application for all (4) buildings identified above in the descriptions including: 1. Photo documentation of interior and exterior existing conditions. 2. Preliminary 2018 IRC code review if required to confirm number and location of required exits,and accessibility requirements. Stickley Morton Architecture 2 3. Rehabilitation Plans of: a. Lower Level b. First Level c. Second Level d. Attic Levels(properties with accessible attics) 4. Rehabilitation Building Elevations of: a. 1240 White Street West fa�ade showing proposed porch rehabilitation. b. 1398 White Street North fa�ade showing proposed design including restaurant concept. c. 1398 White Street East fa�ade showing proposed design including restaurant concept. d. 1398 White Street West fa4ade showing proposed storefront design. 5. Printing,sorting,written descriptions, and labeling of physical photographs. 6. Formatting and written descriptions of digital photographs. 7. Development and finalization of proposed scope of work for all properties with owner. 8. Completion of proposed scope of work and rehabilitation treatment written descriptions for application. 9. Window types and proposed details for windows being replaced. 10. Additional information and drawing sheets as necessary to document new design work. 11. Up to two(2)formal progress meetings with client to discuss findings and recommended treatments. 12. Final assembly and submission of the State and Federal Part 2 Applications. Part 2B Historic Tax Credit Application Completed by Heritage Works. Part 3 Historic Tax Credit Application SMA will prepare and submit completed information required for the Part 3 Application for all (4) buildings identified above in the descriptions including: 1. Photo documentation of interior and exterior completed work. 2. Photo key plans. 3. Photo printing,formatting,and labeling(digital and physical copies). The part 3 Application also requires accounting and legal work to receive the tax credits. It is recommended the client investigate the specifics and consult with qualified legal and accounting firms. 2-ADDITIONAL SERVICES Additional services are those elected by the client and are not included in the services outlined above. They may include but are not limited to: 1. Construction Administration services(can be performed hourly on an as-needed basis). 2. Structural Engineering for new or repair work. 3. Landscape and Civil Engineering. 4. Revisions to the scope of work outside of those outlined in phases above. 5. Major revisions to the project program. 6. Multiple floor plan design options exceeding two(2)design iterations. C. SERVICES&INFORMATION PROVIDED BY CLIENT The Client shall be responsible for the following: 1. Provide timely feedback following meetings and owner decisions. 2. Provide access to the existing building for selective demolition and visual inspections of the existing conditions. 3. Notify the Architect of any changes to the project program or scope of work. 4. Notify the Architect of any required changes to the project schedule. Stickley Morton Architecture 3 COMPENSATION Compensation to Stickley Morton Architecture will be billed monthly based on hours worked the previous month at our standard hourly rates as shown in the table below plus any reimbursable expenses incurred. The fee represents a guaranteed maximum price based on the scope and schedule outlined in this proposal. Only hours worked to complete the project will be billed and any remaining fee left over at the end of the project will remain with the Client. Consultants'fees will be compensated on amounts invoiced to Stickley Morton Architecture without additional mark-up. Client will notify SMA of any disputes or questions regarding an invoice within 15 days of Client's receipt of the invoice in question. Amounts unpaid 60 days after the issue date of SMA invoice will be assessed a service charge of 1.5%per month. Hourly Rates(SMA) Position Hourly Rate Partner in Charge $120.00 Project Architect $110.00 Design Support(discounted from$65 per hour) $50.00 Administrative $50.00 Design Fee Schedule 1240 White Street—Base Services(Part 1, 2, &3 HTC application) $12,000.00 1390 White Street—Base Services(Part 1, 2, &3 HTC application) $12,000.00 1398 White Street—Base Services(Part 1, 2, &3 HTC application) $12,000.00 1458 White Street—Base Services(Part 1, 2, &3 HTC application) $8,000.00 Total Design Fee(not to exceed) $44,000.00 Reimbursable Expenses are in addition to compensation for design services and include expenses incurred by Stickley Morton Architecture in the interest of the project, including but not limited to: 1. Printing, reproduction,shipping,and handling. 2. Sales tax and other transactional fees required for the project. 3. Application fees. D. AGREEMENT&ACCEPTANCE This Agreement is comprised of and incorporates the following documents: a)This Proposal for Architectural Services and Agreement b)Amendments and modifications signed by both parties if applicable By Stickley Morton Architecture By Client Mike Sticklev (Printed Name) (Printed Name) ��� 11.28.2022 (Signature) (Date) (Signature) (Date) Architect/Owner (Title) (Title) Stickley Morton Architecture 4