Setting a Public Hearing on a Proposed Development Agreement with Millwork Flats, L.L.C.City of Dubuque
City Council Meeting
Copyrighted
June 3, 2024
Items to be set for Public Hearing #
01.
ITEM TITLE: Resolution Setting a Public Hearing on a Proposed Development
Agreement by and between the City of Dubuque, Iowa and Millwork
Flats, L.L.C. Providing for the Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
SUMMARY: City Manager recommending City Council approve the attached
resolution setting a public hearing for June 17, 2024, on a proposed
Development Agreement by and between the City of Dubuque, Iowa and
Millwork Flats, L.L.C. providing for the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
RESOLUTION Fixing the date for a public hearing of the City Council of
the City of Dubuque, Iowa on a Development Agreement by and
between the City of Dubuque, Iowa and Millwork Flats, L.L.C., including
the proposed issuance of urban renewal tax increment revenue
obligations relating thereto and providing for the publication of notice
thereof
Receive and File; Adopt Resolution(s), Set Public Hearing for June 17,
2024Suggested Disposition:
Staff Memo
Notice of Hearing
Resolution to Set Public Hearing
Development Agreement
Type
City Manager Memo
Staff Memo
Supporting Documentation
Resolutions
Supporting Documentation
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Setting a Public Hearing on a Proposed Development
Agreement by and between the City of Dubuque, Iowa and Millwork Flats,
L.L.C. Providing for the Issuance of Urban Renewal Tax Increment
Revenue Grant Obligations Pursuant to the Development Agreement
DATE: May 30, 2024
Economic Development Director Jill Connors is recommending City Council approve the
attached resolution setting a public hearing for June 17, 2024, on a proposed
Development Agreement by and between the City of Dubuque, Iowa and Millwork Flats,
L.L.C. providing for the issuance of Urban Renewal Tax Increment Revenue Grant
Obligations.
Millwork Flats, L.L.C. owns 1065 Jackson Street and intends to raze the existing structure
and redevelop the lot. The project will include the creation of 62 market -rate residential
rental units as well as first -floor commercial space. The project will be utilizing a
combination of public and private financing as well as applying to the Iowa Workforce
development Housing Tax Credit Program.
The key elements of the Development Agreement include the following:
• Developer will make a capital investment of approximately $17.5 million dollars to
redevelop the property.
• Developer must create 62 market -rate residential rental units.
• Developer will receive 15 years of years of tax increment financing incentives in
the form of semi-annual rebates. Tax increment financing incentives are estimated
to not exceed $3,106,447.
• City to award a Forgivable Loan in an amount of $500,000 at 0% interest. For
each new rental unit created, $10,000 will be forgiven up to the full balance of
$500,000. Unless forgiven, the remaining balance on the loan will be due in full on
May 1, 2027.
• City of Dubuque will amend the Greater Downtown Urban Renewal District Plan to
accommodate the issuance of tax increment financing incentives.
The Development Agreement requires Developer to accept applications from
prospective tenants with housing choice vouchers (issued under the U.S. HUD's
Section 8 voucher program or a similar program) that are otherwise qualified
prospective tenants.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque Economic Development
Department
THE CITY OF ' 50 West 131h Street
All•AmerieaNy Dubuque, Iowa 52001-4864
DUB &http://www.cityofdubuque.org
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1111.
Office (563) 589-4393
TTY (563) 690-6678
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2007*2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Setting a Public Hearing on a Proposed Development
Agreement by and between the City of Dubuque, Iowa and Millwork Flats,
L.L.C. Providing for the Issuance of Urban Renewal Tax Increment
Revenue Grant Obligations Pursuant to the Development Agreement
DATE: May 29, 2024
INTRODUCTION
This memorandum is a request for the City Council to approve the attached resolution
setting a public hearing for June 17, 2024 on a proposed Development Agreement by
and between the City of Dubuque, Iowa and Millwork Flats, L.L.C. providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
BACKGROUND
Millwork Flats, L.L.C. is owned by Hodge Company. Hodge has successfully completed
several projects in the Industrial Park and most recently entered into a Development
Agreement with the City for the purchase and redevelopment of 400 Ice Harbor Drive.
That location will serve as the new headquarters for the company.
DISCUSSION
Millwork Flats, L.L.C. owns 1065 Jackson Street and intends to raze the existing
structure and redevelop the lot. The project will include the creation of 62 market -rate
residential rental units as well as first -floor commercial space. The project will be
utilizing a combination of public and private financing as well as applying to the Iowa
Workforce development Housing Tax Credit Program.
The key elements of the Development Agreement include the following:
• Developer will make a capital investment of approximately $17.5 million dollars to
redevelop the property.
• Developer must create 62 market -rate residential rental units.
• Developer will receive 15 years of years of tax increment financing incentives in the
form of semi-annual rebates. Tax increment financing incentives are estimated to not
exceed $3,106,447.
• City to award a Forgivable Loan in an amount of $500,000 at 0% interest. For each
new rental unit created, $10,000 will be forgiven up to the full balance of $500,000.
Unless forgiven, the remaining balance on the loan will be due in full on May 1, 2027.
• City of Dubuque will amend the Greater Downtown Urban Renewal District Plan to
accommodate the issuance of tax increment financing incentives.
The Development Agreement requires Developer to accept applications from
prospective tenants with housing choice vouchers (issued under the U.S. HUD's
Section 8 voucher program or a similar program) that are otherwise qualified
prospective tenants.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution setting a June 17, 2024
public hearing on the Development Agreement including the issuance of Urban
Renewal Tax Increment Revenue Grant Obligations.
2
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 17th day of June, 2024, at 6:30 p.m., in the Historic Federal Building, 350
W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to
take action to approve a Development Agreement between the City of Dubuque, Iowa
and Millwork Flats, L.L.C., a copy of which is now on file at the Office of the City Clerk,
City Hall, 50 W 13th Street, Dubuque, Iowa, providing for the issuance of economic
development grants (Urban Renewal Tax Increment Revenue Grant Obligations)
described therein in order to carry out the purposes and objectives of the Urban Renewal
Plan for the Greater Downtown Urban Renewal Area Economic Development District,
consisting of the funding of economic development grants for Millwork Flats, L.L.C., under
the terms and conditions of the Urban Renewal Plan for the Greater Downtown Urban
Renewal Area Economic Development District. The aggregate amount of the Urban
Renewal Tax Increment Revenue Grant Obligations cannot be determined at the present
time, but is not expected to exceed $3,106,447.
At the meeting, the City Council will receive oral and written comments from any resident
or property owner of said City to the above action. The official agenda will be posted the
Friday before the meeting and will contain public input options. The City Council agenda
can be accessed at https://cityofdubuque.novusagenda.com/AgendaPublic/ or by
contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Written comments regarding the above public hearings may be submitted to the City
Clerk's Office via email at ctyclerk@cityofdubuque.org or by mail to City Clerk's Office,
City Hall, 50 W. 13t" St., Dubuque, IA 52001, before said time of public hearing. At said
time and place of public hearings the City Council will receive any written comments.
Copies of supporting documents for the public hearings are on file in the City Clerk's
Office and may be viewed Monday through Friday between 8:00 a.m. and 5:00 p.m.
Individuals with limited English proficiency, vision, hearing, or speech impairments
requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD
(563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing
individuals can use Relay Iowa by dialing 711 or (800) 735-2942.
Published by order of the City Council given on the 3rd day of June 2024.
Adrienne N. Breitfelder, City Clerk
Prepared by: Ian Hatch, Economic Development. 50 W. 1311 Stroct, Dubuque IA 52001, 563 589-4105
Return to: Ian Hatch, Economic Development. 50 W. 1310 Street, Dubuque IA 52001, 563 589-4105
RESOLUTION NO. 165-24
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA ON A DEVELOPMENT AGREEMENT BY AND BETWEEN THE
CITY OF DUBUQUE, IOWA AND MILLWORK FLATS, L.L.C., INCLUDING THE
PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE
OBLIGATIONS RELATING THERETO AND PROVIDING FOR THE PUBLICATION OF
NOTICE THEREOF
WHEREAS, City and Millwork Flats, L.L.C. have entered into a Development
Agreement, subject to the approval of the City Council, a copy of which is now on file at the
Office of the City Clerk, City Hall, 50 W. 13th Street, Dubuque, Iowa for the development of
property located at 1065 Jackson Street; and
WHEREAS, the City Council has tentatively determined that it would be in the best
interests of the City to approve the Development Agreement, with Millwork Flats, L.L.G.; and
WHEREAS, it is deemed necessary and advisable that City should authorize
Urban Renewal Tax Increment Revenue obligations, as provided by Iowa Code Chapter
403 pursuant to the Development Agreement; and
WHEREAS, before said obligations may be approved, Iowa Code Chapter 403
requires that the City Clerk publish a notice of the proposal and of the time and place of
the meeting at which the City Council proposes to take action thereon and at which
meeting the City Council shall receive oral and/or written objections from any resident or
property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Clerk is hereby authorized and directed to cause a notice to
be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's
intent to authorize Urban Renewal Tax Increment Revenue obligations, to be held on the
17th day of June, 2024, at 6:30 p.m. The official agenda will be posted on Friday, June 14,
2024 and will contain listening, viewing, and public input options. The City Council agenda
can be accessed at https://citVofdubuque.novusageiida.com/AgendaPublicl or by
contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Section 2. The City Council will meet at said time and place for the purpose of
taking action on the matter of authorizing Urban Renewal Tax Increment Revenue
obligations and the execution of the Development Agreement relating thereto with
Millwork Flats, L.L.C., the proceeds of which obligations will be used to carry out certain
of the special financing activities described in the Urban Renewal Plan for the Greater
Downtown Urban Renewal District, consisting of the funding of economic developments
grants to Millwork Flats, L.L.C. pursuant to the Development Agreement. It is expected
that the aggregate amount of the Tax Increment Revenue obligations to be issued will be
approximately $3,106,447.
Section 3. The Clerk is hereby directed to cause at least one publication to be
made of a notice of said meeting, in a newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation in said City, said
publication to be not less than four days nor more than twenty days before the date of
said meeting on the issuance of said obligations.
Section 4. That the notice of the proposed action to issue said obligations shall
be in substantially the form attached hereto.
Passed, approved and adopted this 3rd day of June, 2024.
Attest:
Adrienne N. Breitfelder, City Clerk
Bra . avan gi `Mayor
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