Dubuque Brewing and Malting Building Update - 3000 JacksonCity of Dubuque
City Council Meeting
ITEM TITLE
SUMMARY:
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo - Update
Email from Steve Emerson
Copyrighted
January 16, 2024
Action Items # 03.
Dubuque Brewing and Malting Building Update - 3000 Jackson
City Manager is submitting a status update on the Dubuque Brewing and
Malting project at 3000 Jackson Street.
Receive and File; PresentationSuggested Disposition:
Type
City Manager Memo
Staff Memo
Supporting Documentation
THE C
DUj!BQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 3000 Jackson Dubuque Brewing and Malting Project Update
DATE: January 11, 2024
Dubuque
WAWca 914
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2007-2012.2013
2017*2019
Housing & Community Development Director Alexis Steger is submitting a status update
on the Dubuque Brewing and Malting project at 3000 Jackson Street.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing & Community Development Director
Jill Connors; Economic Development Director
Wally Wernimont, Planning Services Director
Michael Belmont, Asst. Housing & Comm Development Director
Dubuque
THE CITY OF
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DUB E
2007-2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
Housing & Community
Development Department
350 W 61h Street, Suite 312
Dubuque, Iowa 52001-4763
Office (563) 589-4230
http://www.cityofdubuque.org
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: 3000 Jackson H & W Building Update
DATE: January 11, 2024
INTRODUCTION
This memorandum provides a status update on the H & W project at 3000 Jackson Street.
BACKGROUND
January 3, 2024 staff presented a memo to update the City Council providing the following
information:
Owner Steve Emerson will no longer be pursuing the option to brace the unstable portions
of the building and will instead pursue demolition.
DISCUSSION
After receiving the application for demolition from Zinser Construction on Friday January
5, 2024, Code Official Mike Belmont asked the contractor for more information about the
plans for demolition. The owner, Steve Emerson, copied the email sent to the contractor,
which included these questions:
• Are there any plans for salvage?
o Brick
o Iron columns
o Stone
• What is the sequencing/phasing anticipated?
o Anticipated Schedule
• More specifically, how quickly would the towers come down?
• What is the plan for basement and foundation?
o Utility disconnection and capping. Need to follow city standards — contact
engineering and water for details.
• How, specifically, do you plan to take the towers down?
o Assuming no explosives, but (we) need to know if that is planned.
o What is the construction zone, and plans for securing?
• Do you have an anticipated tonnage of material for solid waste agency?
• What is the plan for asbestos abatement — do we have a report?
o If not abated — what is the plan for contaminated material?
On January 9, 2024, the city received this email from the owner, Steve Emerson:
"I am working on the salvage and recycling concepts.
Asbestos is slated to begin after the 10 dnr notice. However demolition
will need to be strategized with financing. If the City is willing to participate
or can start immediately however when i watched the recording of then
council meeting I heard Mikes comment regarding my request for
participation "the council could kick it back to the city manager and 1'll
reject it". In that scenario I will have to go through the backing process
which will require a new appraisal with the as proposed value once
demolition is complete. Loan approval and funding so as to not hang
Zinser out there with no funds to pay their bills.
1 have invested millions into the property already. $350k just this last year
alone. With engineering, abatement, stabilization for demolition,
demolition and salvage there is easily another million going in.
I will outline both timelines for you in consideration of my request.
SLE"
As of the date of this memo, efforts to contact the owner by phone to discuss this
correspondence have not been fruitful.
2
City staff have prepared a letter to serve to Steve Emerson that outlines the enforcement
timeline. The letter explains that Municipal Infractions (MI) will be issued each day that no
reasonable action is being taken to complete the demolition. The first MI penalty has a
maximum penalty of $750 and each subsequent MI has a maximum penalty of $1,000.
The city will seek maximum penalties with each issued MI. This letter will be sent January
12, 2024, and municipal infractions will begin on January 17t", 2024, without reasonable
action from the owner/contractor daily.
RECOMMENDATION
This memo is for information only.
CC: Jill Connors; Economic Development Director
Wally Wernimont, City Planner
Michael Belmont, Asst. Housing & Comm Development Director
3
Adrienne Breitfelder
Subject: FW: Information for Tuesdays Meeting
From: Steve Emerson <sle@aspectinc.net>
Sent: Sunday, January 14, 2024 6:53 AM
To: Michael Belmont <Mbelmont@cityofdubuque.org>
Cc: Mike Van Milligen <ctvmgr@cityofdubug ue.org>; Brad Cavanagh <Bcavanagh@cityofdubugue.org>
Subject: Information for Tuesdays Meeting
Caution! This message was sent from outside your organization. Never give your login
information and password over email! Allow sender I Block sender
Subject: Request for Assistance in Demolishing the 3000 Jackson Building
Dear Michael,
wanted to express my gratitude for your call and the invitation to the City Council Meeting on Tuesday. I am
looking forward to attending and providing an update on the situation regarding the 3000 Jackson Building, as well
as requesting the necessary funds. To save time during the meeting, I believe it would be helpful to distribute the
following information to the council members beforehand.
History:
As you may know, I purchased the 3000 Jackson property with the intention of preserving its historic structure,
which I believe is one of the most iconic in the Midwest. Unfortunately, the center section had already collapsed
prior to my purchase. Additionally, the asbestos was not removed, which resulted in the removal of contaminated
debris at an additional cost to myself.
To incentivize the development of the property, the City had agreed to reimburse half of the cleanup costs.
However, due to delays in the project's timeline, the City decided to collect on my letter of credit and withdrew
their $500,000 contribution. While I understand their reasoning, this setback hindered our efforts to stabilize,
mitigate, or redevelop the property.
Over the years, my development team and I sought assistance from various local developers, contractors, and
state funding sources. Unfortunately, none of them were able to offer the level of assistance required to properly
redevelop the property to our standards. As a result, I have personally invested nearly $3,000,000 into this project
without any external assistance.
To Date:
Since the evaluation by the City's engineers, we have taken several steps to address the building's condition. We
demolished the walls that were at risk of falling, implemented internal structural support and designed the cable
ties and rigid frame stabilization system. We also had three contractors evaluate the details and provide cost
estimates for bracing the building and conducting additional surgical demolition, which is estimated to cost
around $350,000.
We have also been diligently analyzing the Qualified Allocation Plan (QAP) for the upcoming round of 9% Low -
Income Housing Tax Credit (LIHTC) funding. Unfortunately, based on our analysis, it seems unlikely that a project
in Dubuque will win a 9% LIHTC grant. However, there is a real possibility of securing a 4% grant if we all work
together.
Present:
Given the circumstances, we have made the difficult decision to pursue the demolition of the 3000 Jackson
Building. We have already hired an asbestos abatement contractor to remove the hazardous waste, and we have
followed the required legal procedures by giving the necessary notice to the DNR and waiting the mandatory 10-
day period. Once this waiting period is over, the asbestos will be removed.
Zinser is currently in the process of securing a demolition permit, and they are also coordinating with the utilities
to ensure disconnection before starting the demolition. Additionally, I have been in contact with Kyle Fitzgerald
from Fitzgerald Deconstruction and Reuse regarding salvage opportunities for the brick, cast iron, and limestone.
Both Kyle and Zinser are strategizing on the best approach to demolish the building.
Ask:
In light of these developments, I am reaching out to request $500,000 from the City to assist in expediting the
demolition process. Unfortunately, due to the City's withdrawal of their initial $500,000 contribution, I do not have
the necessary funds available to cover the costs of the demolition. I have already contacted the bank for the
property and initiated the loan approval process, which will take 6-8 months from now until funding.
Furthermore, I am deeply committed to supporting local businesses and providing opportunities for them to be
involved in this demolition project. By allocating the requested funds, not only will we be able to accelerate the
safety of the neighborhood, but we will also create economic opportunities for the local community.
want to assure you that we are doing everything within our power to prepare for the demolition and are strictly
adhering to all legal requirements. However, the final step of demolishing the building is still approximately four
weeks away, assuming the City provides assistance in funding this portion of the project.
I have exhausted all possible leads for external assistance and have not received any help from the community
thus far. I have always maintained that this is a complex project that requires more than just my personal financial
commitment. As the previous owner was unwilling to save the structure, I bailed the City out of millions of dollars
in demolition costs. Therefore, I see this request as an investment in our community, as it will accelerate the
safety of the neighborhood and provide an opportunity to develop the 3040 building, which is in much better shape
structurally than the 3000 building.
In conclusion, I would like to pose a question to you and the City of Dubuque: How can we work together to save
the northern portion of this historic structure and provide meaningful affordable housing opportunities for our
community? I believe that byjoining forces, we can overcome the challenges we currently face and create a
positive impact for the city and its residents.
Thankyou for your time and consideration. I look forward to discussing this matter further at the City Council
Meeting on Tuesday.
Best regards,
Steve
Stephen L. Emerson
Aspect architecture:design
221 2nd avenue SE, Suite 400
Cedar Rapids, IA 52401
ph. (319) 364.7444
fax (319) 364.7562
Cell (319) 310.6600