Proposed Modification to the Downtown Rehabilitation Program AwardsCity of Dubuque
City Council
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Copyrighted
November 4, 2024
ITEM TITLE: Proposed Modification to the Downtown Rehabilitation
Program Awards
SUMMARY: City Manager recommending City Council approval of a
proposed modification to the Downtown Rehabilitation
Program awards to blend the Facade, Planning & Design,
and Financial Consultant Grants to create one, $35,000
Rehabilitation Grant.
RESOLUTION Authorizing The City Manager To Amend The
City Of Dubuque Downtown Rehabilitation Grant Award
Program
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. Resolution of Approval
Page 2455 of 2498
THE CITY OF
Dubuque
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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: Proposed Modification to the Downtown Rehabilitation Program Awards
DATE: October 30, 2024
Assistant Economic Development Director Ian Hatch is recommending City Council
approval of a proposed modification to the Downtown Rehabilitation Program awards to
blend the Fagade, Planning & Design, and Financial Consultant Grants to create one,
$35,000 Rehabilitation Grant. Increased accessibility to these grant dollars will support
the City Council priority of revitalizing the Central Avenue Corridor as well as furthering
the goal of making Dubuque an equitable community of choice.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Ian Hatch, Assistant Economic Development Director
Page 2456 of 2498
Dubuque
THE CITY OF
All -Americo City
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2007-2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Ian C. Hatch, Assistant Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: Proposed Modification to the Downtown Rehabilitation Program Awards
DATE: October 22, 2024
INTRODUCTION
This memorandum presents for your review and approval a proposed modification to the
Downtown Rehabilitation Program awards, commonly referred to as the Fagade Grant
Program.
BACKGROUND
The Fagade Grant Program contains three separate grants, the Fagade Grant, the Planning
& Design Grant, and the Financial Consultant Grant. Since 2007, the City Council has
awarded at least one of these grants to 72 different projects, contributing to the dramatic
revitalization of previously blighted neighborhoods such as the Millwork District, and Lower
Main.
The Fagade Grant is a matching (1:1) grant not to exceed Ten Thousand Dollars ($10,000)
to reimburse developers for documented costs that improve the overall appearance of the
property, generally materials and labor.
The Planning & Design Grant is a matching (1:1) grant not to exceed Ten Thousand Dollars
($10,000) to reimburse developers for documented predevelopment costs, such as design,
architectural, and engineering fees associated with the rehabilitation of the property.
The Financial Consultant Grant is a matching (1:1) grant not to exceed Fifteen Thousand
Dollars ($15,000) to reimburse developers for documented costs related to hiring a financial
consultant to evaluate the Project's feasibility. Fees associated with tax credit applications
are considered reimbursable costs under this grant.
Page 2457 of 2498
Historically, only larger -scale developers and firms have been able to fully utilize the
Planning & Design Grant and the Financial Consultant Grant. Many of the costs associated
with these grants are incurred while pursuing state and federal historic tax credits.
Additionally, as these grants are paid once the project is complete, a developer must be
able to shoulder the burden of these costs until after project completion — a further deterrent
for many smaller, up-and-coming developers.
Of the 72 projects that have received grant funding from this program, only 36 projects
applied for the $15,000 Financial Consultant Grant, of which roughly 15 received the full
grant award amount. The work completed on those 15 projects was largely completed by
the same four developers either as the developer for the project or as the firm hired to
perform the work (additional developers have used the funds, but as one-off projects. There
are four developers actively tapping into these funds on a regular basis). While the
tremendous work of these four developers should not be overlooked, it would appear that
from an equity standpoint, only a select few are able to fully utilize the rehabilitation grant
dollars awarded by the City Council.
On October 17t", City staff met with various developers and business owners located along
the Central Avenue Corridor. A common message communicated from each and every
property owner was that the cost of fagade rehabilitation has far outgrown the $10,000
fagade grant. City staff additionally learned that free storefront designs are available
through a Main Street Iowa program, nullifying or at least limiting the usage of the Planning
and Design Grant for many that would seek to utilize these services.
ALTERNATIVES
An alternative means for administering these funds would be to blend the individual grants
and create one $35,000 Rehabilitation Grant. All previous eligibility requirements would
remain in place. However, if developers have no financial consultant costs but elevated
fagade material costs, they could apply those previously restricted financial consultant grant
dollars toward their fagade improvements. Similarly, if the project design costs do not reach
the maximum amount allowed under the current grant system, the remaining funding could
be applied toward eligible fagade costs.
DISCUSSION
Removing the monetary barriers between the Fagade, Design, and Financial Consultant
Grants, and creating one, $35,000 Rehabilitation Grant would make the funding more
adaptable and therefore more accessible to projects of differing sizes. Projects put forth by
smaller scale developers and business owners would not need to pursue state and federal
tax credits to fully utilize the available funding. This modification would have the largest
impact on the Central Avenue Corridor — a top priority for City Council. The properties
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Page 2458 of 2498
located along this iconic street are smaller in size with fewer residential spaces above the
first -floor commercial, offering more modest returns on investment for developers.
All work impacting the exterior of the building would still be required to be reviewed and
approved by the Planning Services Department. Thus, blending these grants would not
reduce the quality of fagade work being undertaken and could arguably increase the quality
of work as a larger grant might lead to increased buy in from developers.
BUDGET IMPACT
This modification would not impact the funding requests in the 5-year CIP.
RECOMMENDATION
I recommend modifying the Downtown Rehabilitation Program awards to blend the Fagade,
Planning & Design, and Financial Consultant Grants to create one, $35,000 Rehabilitation
Grant. Increased accessibility to these grant dollars will support the City Council priority of
revitalizing the Central Avenue Corridor as well as furthering the goal of making Dubuque
an equitable community of choice.
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Page 2459 of 2498
Ian C. Hatch Assistant Economic Development Director, 1300 Main Street Dubuque IA 52001 (563) 589-4105
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 361-24
AUTHORIZING THE CITY MANAGER TO AMEND THE CITY OF DUBUQUE DOWNTOWN
REHABILITATION GRANT AWARD PROGRAM
Whereas, the City Council of the City of Dubuque, Iowa has created a Downtown
Rehabilitation Grant Program (the Program) for purpose of stimulating reinvestment in the
Greater Downtown Urban Renewal Area; and
Whereas, the Program provides for incentives which have assisted in the rehabilitation of
seventy-two properties since its inception; and
Whereas, City Council has determined that amending the guidelines for the Program will
encourage additional redevelopment efforts within the Greater Downtown Urban Renewal
Area; and
Whereas, the City Council has determined that the City Manager should be granted the
authority to amend the Program to modify the guidelines.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The City Manager is authorized to amend the guidelines for the Downtown
Rehabilitation Grant Program as needed to accommodate projects in a flexible manner.
Passed, approved, and adopted this 4th day of November 2024.
or
Bra . Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk