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Resolution of Support for Workforce Housing Tax Credit Application by 799 Main, LLC Copyrighted May 20, 2024 City of Dubuque Consent Items # 05. City Council Meeting ITEM TITLE: Resolution of Supportfor Workforce Housing Tax CreditApplication by 799 Main, LLC SUM MARY: City Manager recommending City Council adopt a resolution of support for a Workforce Housing Tax CreditApplication to the lowa Economic Development Department, being submitted by 799 Main, LLC for redevelopment of property at 799 Main Street. RESOLUTION Supporting the submission of an lowa Economic Development Authority(I EDA)application to the Workforce Housing Tax Credit Program by 799 Main, LLC SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions 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: Resolution of Support for Workforce Housing Tax Credit Application to lowa Economic Development Authority for a Project at 799 Main Street DATE: May 16, 2024 Economic Development Director Jill Connors is recommending City Council adopt a resolution of support for a Workforce Housing Tax Credit Application to the lowa Economic Development Department, being submitted by 799 Main, LLC for redevelopment of property at 799 Main Street. 799 Main, LLC, proposes to construct Thirty-Six (36) multifamily residential units and invest Twelve Million Dollars $12,000,000 in the construction of the units. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:as 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: Resolution of Support for Workforce Housing Tax Credit Application by 799 Main, LLC DATE: May 14, 2024 INTRODUCTION This memorandum presents for City Council approval a resolution of support for a Workforce Housing Tax Credit Application to the lowa Economic Development Department, being submitted by 799 Main, LLC for redevelopment of property at 799 Main Street. BACKGROUND The lowa Workforce Housing Tax Credit program provides tax benefits to developers to provide housing in lowa communities, focusing especially on those projects using abandoned, empty, or dilapidated properties. Total program benefits are limited to $1 million per project. DISCUSSION The City of Dubuque and 799 Main, LLC entered into a Development Agreement dated July 17, 2023, including the issuance of Economic Development Grants and Urban Tax Increment Revenue Obligations, as amended (the Agreement) by Resolution No. 233-23. 799 Main, LLC proposes to construct Thirty-Six (36) multi-family residential units and invest Twelve Million Dollars $12,000,000 in the construction of the units. The addition of the lowa Workforce Housing Tax Credit to the capital stack improves the viability of the project, increasing the developer's ability to adequately address the shortage of housing in the community. RECOMMENDATION I respectfully request City Council approval of the attached resolution supporting 799 Main, LLC's application for lowa Workforce Housing Tax Credits for its redevelopment project at 799 Main Street in Dubuque. 2 Prepared by: Ian Hatch, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4105 Return to: Ian Hatch, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4105 RESOLUTION NO. 129-24 SUPPORTING THE SUBMISSION OF AN IIOWA ECONOMIC DEVELOPMENT AUTHORITY (IEDA) APPLICATION TO THE WORKFORCE HOUSING TAX CREDIT PROGRAM BY 799 MAIN, LLC WHEREAS, 799 Main, LLC proposes to construct thirty-six (36) multi -family residential units and invest Twelve Million Dollars $12,000,000 in the construction of the units (the Project); and WHEREAS, the Project will support the City's efforts to create new housing opportunities for a growing workforce within the community; and WHEREAS, 799 Main, LLC has committed a significant amount of private financing to the Project; and WHEREAS, the Project is located in the Greater Downtown Urban Renewal Area which has been so designated by City Council Resolution 123-67, on May 18, 1967 as a slum and blighted area (the Project Area) defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the Urban Renewal Plan for the Project Area adopted on May 18, 1967 and last amended on December 18, 2023, City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan, as amended, including the issuance of Economic Development Grants and Urban Tax Increment Revenue Obligations ; and WHEREAS, the City and 799 Main, LLC entered into a Development Agreement dated July 17, 2023, including the issuance of Economic Development Grants and Urban Tax Increment Revenue Obligations, as amended (the Agreement) by Resolution No. 233-23, and WHEREAS, 799 Main, LLC's application to the Workforce Housing Tax Credit Program, a copy of which is attached hereto and by this reference made a part hereof, will provide necessary tax credits and other benefits which will directly contribute to the success of the Project; and WHEREAS, the City supports said application to the Workforce Housing Tax Credit Program by 799 Main, LLC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council of the City of Dubuque hereby supports the submission of an Iowa Economic Development Authority Application to the Workforce Housing Tax Credit Program by 799 Main, LLC for necessary tax credits and other benefits directly contributing to the success of the Project at 799 Main Street, Dubuque, Iowa 52001. Passed, approved and adopted this 20th day of May, 2024. Ric . Jones, Mayor Pro Tern Attest: Adrienne N. Breitfelder, City Clerk