Loading...
Letters of Designation to the Iowa Economic Development Authority for Local Grayfield Tax Credit ProjectsCity of Dubuque City Council Meeting ITEM TITLE: SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description MVM Memo Staff Memo Letters of Designation Copyrighted September 3, 2024 Consent Items # 011. Letters of Designation to the Iowa Economic Development Authority for Local Grayfield Tax Credit Projects City Manager transmitting letters provided to local developers to accompany their applications to the Iowa Economic Development Authority (I EDA). Suggested Disposition: Receive and File Type City Manager Memo Staff Memo Supporting Documentation Masterpiece on the Mississippi Dubuque AIFberka city 2007.2012.2013 2017*2019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Letters of Designation to the Iowa Economic Development Authority for Local Grayfield Tax Credit Projects DATE: August 28, 2024 Economic Development Director Jill Connors is transmitting letters provided to local developers to accompany their applications to the Iowa Economic Development Authority (IEDA). As part of their application, developers are required to provide a letter from the municipality confirming the project meets the definition of a grayfield. Economic Development staff have prepared such letters for the proposed projects at the following addresses: • 125 W. 9th Street • 408 W. 5th Street • 902 Main Street • 925-955 Jackson Street • 1065 Jackson Street • 1527 Central Avenue • 1701 Central Avenue /-- Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Masterpiece on the Mississippi Dubuque All-Aeenn %,IX rm:Ii'lI 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Letters of Designation to the Iowa Economic Development Authority for Local Grayfield Tax Credit Projects DATE: August 26, 2024 INTRODUCTION The purpose of this memorandum is to transmit to City Council letters provided to local developers to accompany their applications to the Iowa Economic Development Authority (IEDA). BACKGROUND The IEDA administers a program designed to financially assist projects that redevelop brownfield and grayfield sites. Iowa code defines a grayfield site as an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. DISCUSSION As part of their application, developers are required to provide a letter from the municipality confirming the project meets the definition of a grayfield. Economic Development staff have prepared such letters for the proposed projects at the following addresses: • 125 W. 9th Street • 408 W. 5th Street • 902 Main Street • 925-955 Jackson Street • 1065 Jackson Street • 1527 Central Avenue • 1701 Central Avenue RECOMMENDATION This memorandum is for communication purposes only. 2 Dubuque AO -Merin city Masterpiece on the Mississippi 22010073.20201172 August 20, 2024 Iowa Economic Development Authority Attn: Matt Rasmussen 200 East Grand Avenue Des Moines, IA 50309 Dear Iowa Economic Development Authority, Economic Development Department 50 West 13th Street Dubuque, Iowa 52001-4864 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Grayfield Certification for Henry Stout Apartments Site at 125 W 9th Street, Dubuque, Iowa I have reviewed the definition of a Grayfield site as specified in Section 15.291 of Iowa Administrative Code, "Brownfield and Grayfield Redevelopment" (updated as of December 22, 2023). The Henry Stout Apartments Building at 125 W 9th Street in Dubuque, IA (the "City"), meets the requirements of a Grayfield site. The Henry Stout Apartments is a 33-unit complex serving 40, 50, and 60% AMI seniors over 50. It sits in the heart of Dubuque's downtown business district within walking distance to Main Street, the Historic Millwork District, and all downtown amenities. It is surrounded by rich arts, culture, and business scenes and serves as a gateway along the critical 9th street corridor. The building itself is the historic Dubuque YMCA, originally built in 1894 and 1916. The space that once served the youth of the community to stay fit and connected to each other, now serves some of the most in need. Since its original renovation, the building has experienced a steady decline in quality and care. This ultimately led to a brick work project that led to the discovery of significant structural concerns on the 4th floor of the 1916 building. In April of 2023, Gronen purchased the building and took on the burden of restoring and rebuilding. Through a 3-phase approach, they have laid out a path forward which would ensure that the residents are given homes that they can afford and be proud of. Three structural assessments and countless manpower hours later, the building is currently dry and is stable, but still requires extensive rehabilitation. The first phase is stabilization of the building. This included significant masonry work, including rebuilding two exterior walls for an entire floor, as well as addressing other weatherization issues including replacing the roof and adding the code required roof drains. Work on the first phase is nearing completion, with the only remaining work to be completed related to the replacement of the roof. The second phase includes the exterior masonry and openings work. This includes retuckpointing, brick replacement where necessary, and replacing the failed wood windows throughout the project. The third phase is the interior renovation. This would include top to bottom finish updates for all the units as well as the common spaces. Special attention is being given to the population that this building serves, so our intent is to add lighting in the halls as well as updating 8 units to comply with accessibility requirements. All this work is organized and phased in order to give each of the residents a home they can live in as long as they can and one that they can be proud of. Many of the existing residents have called this place home for many years and have struggled with the state it currently sits. The opportunities for this project to create lasting change and fully fulfill its purpose can be accomplished, but without support, the developer can only address so much. I do certify that the City of Dubuque believes the Henry Stout Apartments Building meets the Grayfield requirements as stated in Section 15.291 of Iowa Administrative Code. Sincerely, Jill Connors, Economic Development Director Masterpiece on the Mississippi August 26, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque All-Aeenn %,IX rm:Ii'(lI , 11, 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for Plastic Center, Inc. and their project at 408 W. 5th St., Dubuque The City of Dubuque has received notification from Plastic Center, Inc. of their intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 408 W. 5th St., Dubuque, IA, which is an underutilized residential building. As part of their application, Plastic Center, Inc. has requested a letter from the City of Dubuque indicating whether the subject property at 408 W. 5th St. is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 408 W. 5th Street is a qualified Grayfield site for the following reasons: 1. The building was built in the 1890s as a residential building. 2. The building has been 90% unoccupied for several years. 3. The property has not seen significant improvements since selected renovations in the 1950s, which would now be considered obsolete. The City looks forward to productive use of this property, as it will provide 9 much -needed additional residential rental housing units in the heart of downtown which will help continue the revitalization of downtown Dubuque. If there are questions that require further discussion, please contact me at 563-589-4213. Sincerely, Jill M. Connors Economic Development Director 2 Masterpiece on the Mississippi July 16, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque All-Aeenn %,IX rm:Ii'lI , 11, 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for FEH Design Office Remodel — 902 Main Street, Dubuque, IA The City of Dubuque has received notification from FEH Design of its intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 902 Main Street, Dubuque, IA, which is vacant commercial building. As part of its application, FEH Design has requested a letter from the City of Dubuque indicating whether the subject property at 902 Main Street is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 902 Main Street is a qualified Grayfield site for the following reasons: 1. The property is a commercial building built in 1900. 2. The building has been largely vacant for the past 30 years despite changes in ownership and completely vacant since 2016. 3. The property has not seen significant improvements since at least the 1990s, which improvements would now be considered obsolete. The City looks forward to a productive use of this property, as it will restore the architectural integrity of the structure while generating new commercial space in an underutilized block of the business district. Overall, the project will significantly contribute to the continued revitalization of downtown Dubuque. If there are questions that require further discussion, please contact me at 563-589- 4105. Sincerely, /cA/vv Hatch Ian C. Hatch Assistant Economic Development Director City of Dubuque, Iowa 2 Masterpiece on the Mississippi July 16, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque All-Aeenn %,IX rm:Ii'lI , 11, 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for Millwork Distilling Co. — 925 & 955 Jackson Street, Dubuque, IA The City of Dubuque has received notification from Millwork Distilling Co. of its intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 925 & 955 Jackson Street, Dubuque, IA, which is vacant commercial building. As part of its application, Millwork Distilling Co. has requested a letter from the City of Dubuque indicating whether the subject property at 925 & 955 Jackson Street is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261— chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 925 & 955 Jackson Street is a qualified Grayfield site for the following reasons: 1. The wood frame metal sided structure was built in 1900 and the brick structure was built in 1909. 2. The building has been largely vacant since at least the 1990s. 3. The property has not seen significant improvements since at least the 1990s, which improvements would now be considered obsolete. The City looks forward to a productive use of this property, as it will preserve the history and architecture of the neighborhood while creating a commercial space that is community oriented and filling a need that is missing in our market. Overall, the project will significantly contribute to the continued revitalization of the Historic Millwork District in the City of Dubuque. If there are questions that require further discussion, please contact me at 563-589- 4105. Sincerely, I ct4 i }{ Gitch Ian C. Hatch Assistant Economic Development Director City of Dubuque, Iowa 2 Masterpiece on the Mississippi August 14, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque AII•America City II I I le r 2007*2012*2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for Millwork Flats, L.L.C. — 1065 Jackson Street, Dubuque, IA The City of Dubuque has received notification from Millwork Flats, L.L.C. of its intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 1065 Jackson Street, Dubuque, IA, which is largely vacant commercial building. As part of its application, Millwork Flats, L.L.C. has requested a letter from the City of Dubuque indicating whether the subject property at 1065 Jackson Street is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 1065 Jackson Street is a qualified Grayfield site for the following reasons: 1. The property served as an industrial lumber yard and storage building for over 100 years before being vacated in 2014. 2. The structure is largely vacant with over 85% of the space unoccupied and rendered unusable for nearly 10 years. 3. The building lacks essential infrastructure including electrical, plumbing, mechanical systems, and a proper building envelope, such as insulation and structural integrity. What infrastructure does exist within the building is more than 25 years old, and no substantial improvements have been made in that time. The City looks forward to a productive use of this property. The property occupies nearly an entire block and serves as a critical entry point to the Millwork District, a thriving area in need of continued revitalization. The current state of the building makes it highly likely to remain obsolete and blighted, negatively impacting the district's progress. Redeveloping this site is essential to maintain the quality and consistency of adaptive reuse demonstrated throughout the district. The existing structure's condition presents significant challenges for any developer to repurpose it in a way that matches the district's ongoing revitalization efforts. If there are questions that require further discussion, please contact me at 563-589- 4105. Sincerely, IGt4iHGitch Ian C. Hatch Assistant Economic Development Director City of Dubuque, Iowa 2 Masterpiece on the Mississippi August 26, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque All-Aeenn %,IX rm:Ii'(lI , 11, 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for Corridordbq, LLC and their project at 1527 Central Avenue, Dubuque The City of Dubuque has received notification from Corridordbq, LLC of their intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 1527 Central Avenue, Dubuque, IA, which is an underutilized mixed -use commercial/residential building. As part of their application, Corridordbq, LLC has requested a letter from the City of Dubuque indicating whether the subject property at 1527 Central Avenue is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 1527 Central Avenue is a qualified Grayfield site for the following reasons: 1. The building was built in the 1880s as a mixed -use commercial/retail/residential building. 2. The building has been more than 45% unoccupied for several years. 3. The property has not seen significant improvements since selected renovations in the late 1960s-early 1970s, which would now be considered obsolete. The City looks forward to productive use of this property, as it will provide 11 much -needed additional residential rental housing units in the heart of downtown which will help continue the revitalization of downtown Dubuque. If there are questions that require further discussion, please contact me at 563-589-4213. Sincerely, Jill M. Connors Economic Development Director 2 Masterpiece on the Mississippi August 26, 2024 Matt Rasmussen Program Manager/CDB Administrator Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 PH: 515.725.3126 Dubuque All-Aeenn %,IX rm:Ii'(lI , 11, 2007.2012.2013 2017*2019 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org RE: Financial Assistance for Dubuque Initiatives 1700 LLC and their project at 1701 Central Avenue, Dubuque The City of Dubuque has received notification from Dubuque Initiatives 1700 LLC, of their intent to submit an application to the Iowa Economic Development Authority for financial assistance to redevelop 1701 Central Avenue, Dubuque, IA, which is an underutilized mixed use commercial/residential building. As part of their application, Dubuque Initiatives 1700 LLC. has requested a letter from the City of Dubuque indicating whether the subject property at 1701 Central Avenue is located on a qualified Grayfield site as defined in Iowa Administrative Code section 261—chapter 65, "Brownfield and Grayfield Redevelopment". Iowa code defines a grayfield site as "an industrial or commercial property meeting all of the following requirements: 1. Infrastructure on the property is outdated or prevents an efficient use of the property, including vacant, blighted, obsolete, or otherwise underutilized property. 2. Property improvements and infrastructure are at least 25 years old and one or more of the following conditions exist: • Thirty percent or more of a building located on the property is available for occupancy and has been vacated or unoccupied for at least 12 months; • Assessed value of improvements on the property has decreased by 25 percent or more; • The property is used as a parking lot; • Improvements on the property no longer exist. The City of Dubuque believes the property located at 1701 Central Avenue is a qualified Grayfield site for the following reasons: 1. The building was built in 1895 as a mixed use commercial/residential building. 2. The building has been unoccupied for several years. 3. The property has not seen significant improvements since selected renovations in the 1970s, which would now be considered obsolete. The City looks forward to productive use of this property, as it will provide 4 much -needed additional residential rental housing units in the heart of downtown which will help continue the revitalization of downtown Dubuque. If there are questions that require further discussion, please contact me at 563-589-4213. Sincerely, Jill M. Connors Economic Development Director 2