Letters of Support for Application to IEDA for Redevelopment Tax CreditsCity of Dubuque
City Council
ACTION ITEMS # 6.
Copyrighted
August 18, 2025
ITEM TITLE: Letters of Support for Application to IEDA for Redevelopment
Tax Credits
SUMMARY: City Manager recommending City Council approve the
submission of the attached letters supporting the applications
for Iowa Redevelopment Tax Credits for Wilson House (1243
Locust Street) and IOCO Building (100 E. 1 st Street),
confirming the City's recognition that the properties are
eligible for the tax credit based on the state's definition of a
brownfield.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. Wilson House - 1243 Locust St - Tax Credit Letter
4. IOCO Building - 100 E 1 st St - Tax Credit Letter
Page 475 of 579
Dubuque
THE CITY OF
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Masterpiece on the Mississippi zoo�•*o
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Letters of Support for Iowa Redevelopment Tax Credit Applications for
Downtown Redevelopment Projects on Brownfields Sites
DATE: August 12, 2025
Economic Development Director Jill Connors is recommending City Council approve the
submission of the attached letters supporting the aforementioned applications for Iowa
Redevelopment Tax Credits, confirming the City's recognition that the properties are
eligible for the tax credit based on the state's definition of a brownfield.
This letter confirms the City's recognition that the properties meet the state's definition
of a brownfield and that their redevelopment benefits the community. The following
projects have requested a letter of support from the City to accompany their application:
Wilson House (1243 Locust Street)
IOCO Building (100 E. 1st Street)
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
Page 476 of 579
Dubuque Economic Development
Department
THE CITY OF 1300 (wain street
All-AM111094 Dubuque, Iowa 52001-4763
UB E vxxwi Office (563) 589-4393
1 I I TTY (563) 690-6678
I® http://www.cityofdubuque.org
2007-2012*2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Letters of Support for Iowa Redevelopment Tax Credit Applications for
Downtown Redevelopment Projects on Brownfields Sites
DATE: August 11, 2025
INTRODUCTION
This memorandum presents for City Council review the letters of support to accompany
Iowa Redevelopment Tax Credit Applications to the Iowa Economic Development Authority
being submitted for redevelopment of two properties in Dubuque.
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Developers in Iowa can receive tax credits for redeveloping properties known as brownfield
and grayfield sites. Additional tax credits are available for projects that meet or exceed
sustainable design standards as defined by state law. This tax credit program is offered as
a way to promote the economic health of communities by reducing environmental potential
hazards, cleaning up eyesores, creating new jobs and boosting tax revenue.
Brownfield Sites
Brownfield sites are abandoned, idled or underutilized industrial or commercial properties
where real or perceived environmental contamination prevents productive expansion or
redevelopment. Examples of brownfield sites include former gas stations, dry cleaners and
other commercial operations that may have utilized products or materials potentially
hazardous to the environment.
• Tax credits of up to 24% of qualifying costs of a brownfield project and up to 30% if
the project meets green building requirements.
Page 477 of 579
Grayfield Sites
A Grayfield site is an abandoned public building or industrial or commercial property that
meets these requirements:
1. The property's infrastructure is outdated or prevents efficient use — site is vacant,
blighted, obsolete, or otherwise underutilized.
2. Property improvements and infrastructure are at least 25 years old AND one or more
of the following conditions exists:
a. At least thirty percent of a building located on the property is available for
occupancy and has been unoccupied for at least a year.
b. The assessed value of property's improvements has decreased by at least 25
percent.
c. The property is used as a parking lot.
d. Improvements on the property no longer exist.
• Tax credits of up to 12% of qualifying costs of a grayfield project and 15% if the
project meets green building requirements.
The Program is capped at $15 million per fiscal year with a maximum award of $1.5 million
per project.
DISCUSSION
Applications for this program are accepted on an annual basis, due by September 1st. The
following projects have requested a letter of support from the City to accompany their
application. This letter confirms the City's recognition that the properties meet the state's
definition of a brownfield and that their redevelopment benefits the community.
Wilson House (1243 Locust Street)
Wilson House has been vacant since 2018 and had over 200 showings before being sold.
An asbestos survey was completed in 2024 with sampling and analysis showing evidence
of asbestos being present in piping insulation and floor tile/mastic. The piping insulation
and floor tile/mastic to be remediated for the property to be redeveloped. The City of
Dubuque and Wilson House Apts., LLC entered into a Development Agreement on May
20, 2024 for the creation of Five (5) new residential units with an investment of
approximately One Million Five Hundred Thousand Dollars ($1,500,000.00). The project
intends to use historic tax credits.
IOCO Building (100 E. 1st Street)
The IOCO Building is one of two remaining historic buildings located within the South Port
area. The proposed redevelopment of the building and property would be the first of its
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Page 478 of 579
kind in this area and set an example of the quality and impact a project can have for a
community. The project will create a recreation/gathering place for the entire Dubuque
area. It will also create a physical and visual connection to the Mississippi River, utilizing
Dubuque's best and largest natural asset. The property has already been the subject of
environmental testing and identified the presence of both asbestos and lead based paint.
RECOMMENDATION
I respectfully request City Council approve the submission of the attached letters supporting
the aforementioned applications for Iowa Redevelopment Tax Credits, confirming the City's
recognition that the properties are eligible for the tax credit based on the state's definition
of a brownfield.
3
Page 479 of 579
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 11, 2025
Dubuque
Economic Development
Department
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1300 Main Street
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Dubuque, Iowa 52001-4763
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Office (563) 589-4393
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TTY (563) 690-6678
http://www.cityofdubuque.org
2007.2012-2013
2017*2019
Iowa Economic Development & Finance Authority
1963 Bell Avenue, Suite 200
Des Moines, IA 50315
RE: IEDA Redevelopment Tax Credit — Program Eligibility, Wilson House (1243 Locust
Street) as Brownfield Site
Wilson House in Dubuque, IA meets the criteria of a Brownfield Site as defined in Iowa
Code Section 15.291 and Administrative Code 261.65.2.
Per code definition, "Brownfield site" means an abandoned, idled, or underutilized
industrial or commercial facility where expansion or redevelopment is complicated by real
or perceived environmental contamination. Wilson House has been vacant since 2018.
An Asbestos Survey was completed in 2024 with sampling and analysis showing
evidence of asbestos being present in piping insulation and floor tile/mastic. The piping
insulation and floor tile/mastic to be remediated for the property to be redeveloped.
Per code definition, a brownfield site includes property contiguous with the property on
which the individual or commercial facility is located. Wilson House contamination is
contained to its property boundaries.
Per code definition, a brownfield site does not include property which has been placed,
or is proposed for placement, on the national priorities list established pursuant to the
federal Comprehensive Environmental Response, Compensation, and Liability Act, 42
U.S.C. §9601 et Seq. Wilson House has not been placed, or is proposed for placement,
on this list.
The redevelopment of this property would create an impact on Dubuque's need for
housing and restore a building in the Jackson Park neighborhood. Housing permits within
the City of Dubuque have increased significantly between 2019-2021, yet new
construction only makes up 0.76% of the existing of the total housing in Dubuque. An
exceptional housing demand is marked by statistics regarding the days on market (DOM);
from 2019-2021 there was an average DOM of 30 days which is significantly less than
the state average at the same time. Cost overburdened renters and relatively low
Page 480 of 579
unemployment despite the Covid-19 pandemic, show a sustained need for workforce
housing in the City of Dubuque.
Wilson House is a significant building within the Jackson Park neighborhood. If not
renovated fully and properly, the building will continue to decline. In the year it was for
sale, Wilson House had over 200 showings. The interest was high, due to the location
and potential. Yet, the sizeable scope of work, unknown potential contaminants, and gaps
in financing to perform were too great for most developers. This project will take historical
preservation skill and grant source funding to be successful, and 563 Properties has the
experience and expertise to complete the project. Wilson House has the potential to
create dynamic housing solutions to support workforce growth and to invest in the historic
fabric of our community.
Sincerely,
Jill Connors, Economic Development Director
Page 481 of 579
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 11, 2025
Dubuque
Economic Development
Department
kvlftyl
1300 Main Street
All-AeeMINCO
Dubuque, Iowa 52001-4763
,11R�A, rnV:11-A au
1 I
Office (563) 589-4393
I I�
TTY (563) 690-6678
http://www.cityofdubuque.org
2007.2012-2013
2017*2019
Iowa Economic Development & Finance Authority
1963 Bell Avenue, Suite 200
Des Moines, IA 50315
RE: IEDA Redevelopment Tax Credit - Program Eligibility, 100 E. 1st Street (IOCO
Building) as Brownfield Site
IOCO Building in Dubuque, IA meets the criteria of a Brownfield Site as it is defined in
Iowa Code Section 15.291 and Administrative Code 261.65.2.
Per code definition, "Brownfield site" means an abandoned, idled, or underutilized
industrial or commercial facility where expansion or redevelopment is complicated by real
or perceived environmental contamination. The IOCO Building has been underutilized for
many years and has been vacant for 18 months.
An Asbestos Survey was completed in October of 2024 with sampling and analysis
showing evidence of asbestos being present in 10 of the 47 samples. Asbestos
Containing Material (ACM) included roofing tar, floor tile, adhesives, fittings and pipe
insulation. The ACM to be remediated for the property to be redeveloped.
A Lead -Based paint inspection was completed in October of 2024 with sampling and
analysis showing evidence of Lead -Based paint (LBP) on 40 of 147 samples. These
included elevator shaft walls, door components, window components, ceilings, doors,
walls and columns.
Per code definition, a brownfield site includes property contiguous with the property on
which the individual or commercial facility is located. The IOCO Building contamination is
contained to its property boundaries.
Per code definition, a brownfield site does not include property which has been placed,
or is proposed for placement, on the national priorities list established pursuant to the
federal Comprehensive Environmental Response, Compensation, and Liability Act, 42
U.S.C. §9601 et Seq. IOCO Building has not been placed, or is proposed for placement,
on this list.
Page 482 of 579
The redevelopment of this property would create a catalyst type impact for the South Port
area, which is poised to be the next, large-scale development in downtown Dubuque. The
catalyst impact would increase development interest of all types for the surrounding
properties and start a long-range goal of development matching what occurred on the
north side of the Ice Harbor.
The IOCO Building is one of two remaining historic buildings located within the South Port
area. The proposed redevelopment of the building and property would be the first of its
kind in this area and set an example of quality and impact a project can have for a
community. The project will create a recreation/gathering place for the entire Dubuque
area. It will also create a physical and visual connection to the Mississippi River, utilizing
Dubuque's best and largest natural asset.
Sincerely,
Jill Connors, Economic Development Director
Page 483 of 579