Loading...
Resolutions of Support for Workforce Housing Tax Credit Applications for Housing DevelopmentsCity of Dubuque City Council /_TQIIQ►III=1iy 6RIE A Copyrighted June 2, 2025 ITEM TITLE: Resolutions of Support for Workforce Housing Tax Credit Applications for Housing Developments SUMMARY: City Manager recommending approval of the attached resolutions supporting the applications from 440 W 3rd St, LLC and CC15, LLC for Iowa Workforce Housing Tax Credits for housing development in Dubuque. RESOLUTION Supporting The Submission Of An Iowa Economic Development Authority Application To The Workforce Housing Tax Credit Program By 440 W 3rd St, LLC RESOLUTION Supporting The Submission Of An Iowa Economic DevelopmentAuthority Application To The Workforce Housing Tax Credit Program By CC15, LLC SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. Community Input Form - 440 W 3rd 4. Community Input Form - Cedar Cross 5. Resolution - 440 W 3rd 6. Resolution - Cedar Cross Page 2372 of 2490 THE C Dubuque DUj!BQTE All•pnq'ic8 Ciq Masterpiece an the Mississippi �' pp 13 �fl°''*° z0i720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolutions of Support for Workforce Housing Tax Credit Applications for Housing Developments DATE: May 28, 2025 Economic Development Director Jill Connors is recommending approval of the attached resolutions supporting the aforementioned applications for Iowa Workforce Housing Tax Credits for housing development in Dubuque. A Community Input Form also accompanies each resolution and requires signature. When developers submit an application to the Iowa Economic Development Authority for Workforce Housing Tax Credits, they are required to attach both a Resolution of Support from the municipality — and new this year, a Community Input Form. This allows the municipality to provide insight into the impact each project will have on the City's housing goals. 440 W 3rd St, LLC (440 W 3rd Street) Developer is proposing to create six (6) new residential units in a vacant and underutilized building. The site of the first Mercy Hospital in Dubuque, 440 W 3rd Street has deteriorated and is in need of significant repair. This project will include considerable interior restoration and reconfiguration at an estimated cost of One Million Seven Hundred Thousand Dollars ($1,700,000.00). The project intends to use historic tax credits preserving a historic structure and piece of Dubuque's history. CC15, LLC (300-320 Cedar Cross Road) The City of Dubuque and CC15, LLC have entered into a Development Agreement for the creation of One Hundred Eighty (180) new residential units along Cedar Cross Road. At this time, Developer is applying for workforce housing tax credits for Phase I of the project, which represents 60 new residential rental units. The anticipated investment for this project is approximately Ten Million Five Hundred Thousand Dollars ($10,500,000.00). Page 2373 of 2490 I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director ION Page 2374 of 2490 Dubuque THE CITY OF All -Americo City fvtlx 1Wlf. (TZ: f 1 iK'li 11: UB E ' I I�' 2007-2012.2013 Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, 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: Resolutions of Support for Workforce Housing Tax Credit Applications for Housing Developments DATE: May 28, 2025 INTRODUCTION This memorandum presents for City Council approval individual resolutions of support for Workforce Housing Tax Credit Applications to the Iowa Economic Development Department being submitted by two developers for redevelopment of properties in Dubuque. BACKGROUND The Iowa Workforce Housing Tax Credit program provides tax benefits to developers to provide housing in Iowa communities, focusing especially on those projects using abandoned, empty, or dilapidated properties. Total program benefits are limited to one million dollars ($1,000,000) per project. From 2010 to 2020, according to the US Census Bureau, of the 99 counties in the State of Iowa only 30 grew in population, and only 8 of those grew by more than 5,000 people. Of those 8 counties that grew by more than 5,000 people, only Dubuque County (City of Dubuque) and Scott County (City of Davenport) were outside the Polk County (City of Des Moines)/Story County (City of Ames) and Johnson County (City of Iowa City)/ Linn County (City of Cedar Rapids) corridors. From 2020 to 2024, according to the US Census Bureau's Vintage 2024 population estimates, only 7 counties in the State of Iowa showed a population increase of more than 900 people, and only Dubuque County (+934, total population 100,200) was outside the Polk County/Story County and Johnson County/Linn County corridors. Scott County, which Page 2375 of 2490 was mentioned above as growing from 2010 to 2020, experienced a 19 person decline in this 4 year period. This means that according to the US Census Bureau, Dubuque County population grew by almost 6,000 people from 2010 to 2024, exceeding 100,000 population for the first time ever. Since July 1, 2022 Greater Dubuque Development Corporation reports there has been over $805 million in new construction in Dubuque County creating over 1,000 jobs. DISCUSSION When developers submit an application to the Iowa Economic Development Authority for Workforce Housing Tax Credits, they are required to attach both a Resolution of Support from the municipality — and new this year, a Community Input Form. This allows the municipality to provide insight into the impact each project will have on the City's housing goals. The following projects have approached City staff requesting support to apply. Most of these projects are located in Dubuque's downtown area, with one on the west end. 440 W 3rd St, LLC (440 W 3rd Street) Developer is proposing to create six (6) new residential units in a vacant and underutilized building. The site of the first Mercy Hospital in Dubuque, 440 W 3rd Street has deteriorated and is in need of significant repair. This project will include considerable interior restoration and reconfiguration at an estimated cost of One Million Seven Hundred Thousand Dollars ($1,700,000.00). The project intends to use historic tax credits preserving a historic structure and piece of Dubuque's history. CC15, LLC (300-320 Cedar Cross Road) The City of Dubuque and CC15, LLC have entered into a Development Agreement for the creation of One Hundred Eighty (180) new residential units along Cedar Cross Road. At this time, Developer is applying for workforce housing tax credits for Phase I of the project, which represents 60 new residential rental units. The anticipated investment for this project is approximately Ten Million Five Hundred Thousand Dollars ($10,500,000.00). Given the already demonstrated dearth of housing units in Dubuque — which as described above has had an increase in population since 2010 of nearly 6,000 residents — and with the pending need to house an additional several hundred students, faculty, and staff of the proposed college of osteopathic medicine scheduled to open in 2028, it is imperative that we support the construction of additional affordable housing options. The projects meet one or more of these City Council goals: creation of additional affordable housing; located in Dubuque's downtown; and the rehabilitation of an existing structure. 2 Page 2376 of 2490 The addition of the Iowa Workforce Housing Tax Credit to the capital stack improves the viability of these projects, increasing the developers' ability to adequately address the shortage of housing in the community. RECOMMENDATION I respectfully request City Council approval of the attached resolutions supporting the aforementioned applications for Iowa Workforce Housing Tax Credits for housing development in Dubuque. A Community Input Form also accompanies each resolution and requires signature. 3 Page 2377 of 2490 Prepared by: Ian Hatch, Assistant Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4105 Return to: Adrienne Breitfelder, City Clerk, 50 E. 13"' Street, Dubuque IA 52001, 563 589-4100 RESOLUTION NO.201-25 SUPPORTING THE SUBMISSION OF AN IOWA ECONOMIC DEVELOPMENT AUTHORITY APPLICATION TO THE WORKFORCE HOUSING TAX CREDIT PROGRAM BY 440 W 3rd St, LLC WHEREAS, 440 W 3rd St, LLC (Developer) owns the following described real property in the City of Dubuque, Iowa: Lot 2 of City Lot 607 in the City of Dubuque, Iowa, according to the recorded plat thereof. (the Property); and WHEREAS, Developer plans to rehabilitate the existing structure to construct six (6) new residential units on the Property (the Project) and invest approximately One Million Two Hundred Thousand Dollars ($1,200,000.00) in 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, the Project will support the City's efforts to create new housing opportunities for a growing workforce within the community; 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 April 21, 2025, 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, Developer's application to the Workforce Housing Tax Credit Program, will provide necessary tax credits and other benefits which will directly contribute to the success of the Project; and WHEREAS, the City Council finds that the application to the Workforce Housing Tax Credit Program by 440 W 3Id St, LLC is in the best interests of the City of Dubuque and should be supported 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 440 W 3rd St, LLC for necessary tax credits and other benefits directly contributing to the success of the Project at 440 W 3rd Street, Dubuque, Iowa 52001. Passed, approved and adopted this 2nd day of June, 2025. Brad M. Ca , Mayor Attest: Adrienne N. Breitfelder, City Clerk Communities supporting a Workforce Housing Tax Incentive Program application are to complete this form. This is to be filled out by the city where the project is being proposed and signed by a city official. Community Name: City of Dubuque Project Name: 440 W 3rd Street Developer Name: 440 W 3rd St, LLC Printed Name of City Official Completing the Form: Jill Connors, Economic Development Director Is the type of housing proposed in this project a priority for the community? 0 Yes ❑ No If • explain The City of Dubuque has long prioritized the rehabilitation and reuse of its existing historic architecture. T property at 441 W 3rd Street. originally the site of • •ital in Dubuque, would •• •. .• and underutilized • • n •• •-residential-•units• •- - • • • - ••--Council••. 2dd •• • •• •• • •-community,downtown • •• .•• Describe recent or planned business expansions that created a need for additional housing in the community and the number and types of jobs to be created because of these expansions. Since 2021 twelve local businesses have expanded their operations in Dubuque creating an additional 575 new full time jobs The University of Dubuque is opening the first new medical school in the state of Iowa in over 125 years This new osteopathic college is scheduled to open in downtown Dubuque in 2028 adding over 700 hundred faculty and staff over the next decade The t lniv rsity of DuhuquP invested $i60 million dollars to P)(.pqnd its flight srhnnl inrreasing enrollment from 250 fo over 400 stiAents DuhuquP County has sawn nver $800 million In !nd!istrial and rnmmerrial irniasfinent over the nas_ t 3 5Vaars How will the project impact the local economy? The City of Dubuque is in a housing shortage crisis According to the US Census Bureau the population of Dubuque County grew by almost 6,000 people from 2010 to 2024 nearing a population total of 100,000 for the first time ever. Through creating new residential housing this project will have a tremendous impact on the economy by reducing the strain on the current housing stock •,�I ;IT 114 nP.n i':!F =,! inw9eda_�am Describe how housing is a barrier to job growth in the neighborhood or community. Dubuque is currents experiencing a severe housing shortage. In 2022 Greater Dubuque Development Corporation hired a constultant to perform a housing study. The annual homeowner vacancy rate is 0 5% and the annual rental vacancy rate is 1.3% However, the projected employment growth by 2030 is estimated to be 7.6%. The study found that Dubuque will need 1,192 new workofrce housing units by 2030 in order to meet the demand created by business growth Approximately 42% of businesses interviewed said that housing should be a priority Describe how this project addresses the needs of the local housing market. This project creates new workforce housing units at a time when the City is in dire need of additional housing. Dubuque also has a large amount of historic or historic contributing structures making redevelopment that much more difficult This project is layering state and federal tax credits to create new housing whip. preserving the significant architecture that sets Dubuque apart from other Iowa communities Additinnally this prn,qect will create new housing contributing to a more livable and walkable nPighhnrhnnd Describe the impact of this project on the neighborhood and how it meets the needs of the community. This project is revitalizing a vacant and underutilized building in the Cathedral Historic District in the downtown By bringing the property back into use and creating additional housing for the neighborhood this project meets the neighborhood needs for the downtown as id n ified in the Imagine Dubuque Comprehensive Plan. /ao3_5 Date Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4213 Return to: Adrienne Breitfelder, City Clerk, 50 E. 13th Street, Dubuque IA 52001, 563 589-4100 RESOLUTION NO.202-25 SUPPORTING THE SUBMISSION OF AN IOWA ECONOMIC DEVELOPMENT AUTHORITY APPLICATION TO THE WORKFORCE HOUSING TAX CREDIT PROGRAM BY CC15, LLC. WHEREAS, CC15, LLC (Developer) owns the following described real property in the City of Dubuque, Iowa: Lot 2 of 2 of Mineral Lot 230, Lot 1 of Lot 3 of Mineral Lot 232, and Lot 2 of Merfeld Acres, all in the City of Dubuque, Iowa and as shown on Exhibit A (the Plat) which is currently being replatted to be known as Lots 1, 2, and 3 of Cedar Ridge Commercial Park at 300-320 Cedar Cross Road, Dubuque, Iowa 52003 (the Property); and WHEREAS, Developer proposes to construct sixty (60) multi -family residential units on the Property (the Project) and invest approximately Ten Million Five Hundred Thousand Dollars ($10,500,000.00) in the Project on Lot 1 of the Property; and WHEREAS, the Project will support the City's efforts to create new housing opportunities for a growing workforce within the community; and WHEREAS, Developer has committed a significant amount of private financing to the Project; and WHEREAS, the City and Developer executed a Development Agreement on May 19, 2025, (the Agreement); and WHEREAS, Developer's application to the Workforce Housing Tax Credit Program, will provide necessary tax credits and other benefits which will directly contribute to the success of the Project; and WHEREAS, the City Council finds that the application to the Workforce Housing Tax Credit Program by CC15, LLC is in the best interests of the City of Dubuque and should be supported. 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 CC15, LLC for necessary tax credits and other benefits directly contributing to the success of the Project. Passed, approved and adopted this 2"d day of June, 2025. Attest: Adrienne N. Breitfelder, City Clerk Communities supporting a Workforce Housing Tax Incentive Program application are to complete this form. This is to be filled out by the city where the project is being proposed and signed by a city official. Community Name: City of Dubuque Project Name: 300-320 Cedar Cross Road Developer Name: CC15, LLC Printed Name of City Official Completing the Form: Jill Connors, Economic Development Director Is the type of housing proposed in this project a priority for the community? 91 Yes ❑ No If so, explain why: • • - • ••• • • • •1 •- • • - • • 1 • -•. • �•,• Qn it • • Amenities being constructed to support the new resiclubhouse Qym, and Pickleball court. which is not currently found On other rental comPlexes On Dubuque, dential units include Describe recent or planned business expansions that created a need for additional housing in the community and the number and types of jobs to be created because of these expansions. Since 2021 twelve local businesses have expanded their operations in Dubuque creating an additional 575 new full time jobs The University of Dubuque is opening the first new medical school in the state of Iowa in over 125 years This new osteopathic college is scheduled to open in downtown Dubuque in 2028 adding over 700 hundred faculty and staff over the next dPr`adP The University of Dubuque invested $60 million dollars to expand its light srhnnl inrraacing anrnllmPnt frnm 250 to over 400 students DuhucItip CoCinty has seen nver 200 millinn in industrial and rnmmerrial invPStmPnt oyar the pa_ t 3 9 Vaar-, How will the project impact the local economy? The City of Dubuque is in a housinq shortaqe crisis. Accordinq to the US Census Bureau. the 000ulation of Dubuque County grew by almost 6,000 people from 2010 to 2024 nearing a population total of 100,000 for the first time ever. Through creating new residential housing this project will have a tremendous impact on the economy by reducing the strain on the current housing stock Additionally CC15 LLC is a local family owned business employing all local subcontractors The project will be along a highly visible corridor near shopping and the west end industrial nark `..� .J _ =,!T IIS nNII i,!F ;l" iowaAda cam Describe how housing is a barrier to job growth in the neighborhood or community. Dubuque is currenty experiencing a severe housing shortage. In 2022 Greater Dubuque Development Corporation hired a constultant to perform a housing study. The annual homeowner vacancy rate is 0.5% and the annual rental vacancy rate is 1.3%. However, the protected employmentgrowth by 2030 is estimated to be 7.6%. The study found that Dubuque will need 1 192 new workofrce housing units by 2030 in order to meet the demand created by business growth Approximately 42% of businesses interviewed said that housing should be apriority- Describe how this project addresses the needs of the local housing market. This project will create sixty (60) new workforce housing units at a time when the City is in dire need of additional housing, sot is project takes a large bite' out o t e ousing shortage. Describe the impact of this project on the neighborhood and how it meets the needs of the community. This project is located along a highly visible corridor and will act as a transitional piece that connects commercial uses to single family residential while standing independent of its neighbors through elevation differences_ This infill project will create additional housing for the west end. near the west end industrial Park and sho.pping centers. Date �U. ,.mot ;C�, �nC ;" • �.-�C )"' �J- �J; � `�� , � � �J; .�. � : ,