Letters of Support for an Iowa Redevelopment Tax Credit Application for Downtown Redevelopment Projects on a Grayfield SiteCity of Dubuque
City Council
ACTION ITEMS # 3.
Copyrighted
September 2, 2025
ITEM TITLE: Letters of Support for an Iowa Redevelopment Tax Credit
Application for Downtown Redevelopment Projects on a
Grayfield Site
SUMMARY: City Manager recommending City Council approve the
submission of the letters of support to accompany an Iowa
Redevelopment Tax Credit Application to the Iowa Economic
Development Authority being submitted for redevelopment of
three downtown properties in Dubuque.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. 5th and Main St Project - Tax Credit Letter
4. 801 Jackson St Project - Tax Credit Letter
5. 1236-1248 Iowa St Project - Tax Credit Letter
Page 606 of 629
Dubuque
THE C
D!Uj-!B
AII-America Ciq
11111.1
II
Masterpiece on the Mississippi
YP PP
zoo�•*o 13
2017202019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Letters of Support for an Iowa Redevelopment Tax Credit Application for
Downtown Redevelopment Projects on a Grayfield Site
DATE: August 26, 2025
Economic Development Director Jill Connors is recommending City Council approve the
submission of the letters of support to accompany an Iowa Redevelopment Tax Credit
Application to the Iowa Economic Development Authority being submitted for
redevelopment of three downtown properties in Dubuque.
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.
A Grayfield site is an abandoned public building or industrial or commercial property that
meets certain requirements and then is eligible for 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.
Applications for this program are accepted by the State of Iowa 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
property meets the state's definition of a grayfield site and that its redevelopment
benefits the community.
5t" & Main Street
This property has served as a surface parking lot for decades. The City of Dubuque
and Gronen Development, Inc. entered into a Development Agreement on March 17,
2025 for the creation of 8,000 square feet of first -floor commercial space and at least
eighty (80) rental residential units at an investment of approximately $24,000,000 on
this site. The property is located immediately west of the future John and Alice Butler
School of Osteopathic Medicine being developed by the University of Dubuque. .
Page 607 of 629
801 Jackson Street
After closing its mill working operations decades ago, this property evolved into a
hodgepodge of storage, bakery, and law office space that mostly sits abandoned. The
City of Dubuque and Farley & Loetscher, LLC entered into a Development Agreement
on September 5, 2023 for the creation of One Hundred Twenty -Six (126) rental
residential units at an investment of approximately $25,000,000 on this site.
1236-1248 Iowa Street
The Iowa Street Lofts project proposes to create 13 apartments in the mixed -use
building immediately adjacent to City Hall. The Developer also intends to restore the
commercial storefronts and exterior of the building. Economic Development staff have
been in conversation with the Developer for several months to discuss the plans for this
building and believe it will be eligible for several of our rehabilitation grant programs.
The Developer intends to invest approximately $2,500,000 in the project.
These projects align with the City's strategic goals of enhancing our urban core,
expanding workforce housing, promoting walkable neighborhoods, and supporting local
business growth.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
1�14� k�4 S;�, -
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
2
Page 608 of 629
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 an Iowa Redevelopment Tax Credit Application for
Downtown Redevelopment Projects on a Grayfield Site
DATE: August 26, 2025
INTRODUCTION
This memorandum presents for City Council review letters of support to accompany an
Iowa Redevelopment Tax Credit Application to the Iowa Economic Development Authority
being submitted for redevelopment of three downtown properties in Dubuque.
:J_TeJ:(rj:lomk,Ic'
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 609 of 629
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 property meets the state's
definition of a grayfield site and that its redevelopment benefits the community.
5t" & Main Street
This property has served as a surface parking lot for decades. The City of Dubuque and
Gronen Development, Inc. entered into a Development Agreement on March 17, 2025 for
the creation of 8,000 square feet of first -floor commercial space and at least eighty (80)
rental residential units at an investment of approximately $24,000,000 on this site. The
property is located immediately west of the future osteopathic college.
801 Jackson Street
After closing its millworking operations decades ago, this property evolved into a
hodgepodge of storage, bakery, and law office space that currently sits abandoned. The
City of Dubuque and Farley & Loetscher, LLC entered into a Development Agreement on
September 5, 2023 for the creation of One Hundred Twenty -Six (126) rental residential
units at an investment of approximately $25,000,000 on this site.
K
Page 610 of 629
1236-1248 Iowa Street
The Iowa Street Lofts project proposes to create 13 apartments in the mixed -use building
immediately adjacent to City Hall. The Developer also intends to restore the commercial
storefronts and exterior of the building. Economic Development staff have been in
conversation with the Developer for several months to discuss the plans for this building
and believe it will be eligible for several of our rehabilitation grant programs. The
Developer intends to invest approximately $2,500,000 in the project.
These projects align with the City's strategic goals of enhancing our urban core,
expanding workforce housing, promoting walkable neighborhoods, and supporting local
business growth.
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 grayfield site.
3
Page 611 of 629
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 15, 2025
Dubuque
Economic Development
Department
kvlftyl
1300 Main Street
All-ANIICO
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 of the 5th and Main Street
Project as Grayfield Site
The 5th & Main Street project in Dubuque, IA meets the criteria of a Grayfield Site as
defined in Iowa Code Section 15.291 and Administrative Code 261.65.2.
The proposed multi -family and retail development will bring significant economic, social,
and environmental benefits to our community while transforming an underutilized property
in the heart of our city.
Located at the prominent intersection of 5th Street and Main Street in downtown Dubuque,
the project will redevelop a surface parking lot site into a vibrant, mixed -use property that
will provide quality housing options and new commercial opportunities. By revitalizing this
location, the project aligns with the City's strategic goals of enhancing our urban core,
expanding workforce housing, promoting walkable neighborhoods, and supporting local
business growth.
The City of Dubuque recognizes the importance of public -private partnerships in
advancing redevelopment efforts and applauds the developer's commitment to
sustainable design, adaptive reuse, and community engagement. The Grayfield
Redevelopment Tax Credit will serve as a critical financing tool to make this project
financially feasible and ensure the timely completion of a development that will serve the
community for decades to come.
We respectfully request your favorable consideration of this application. The City of
Dubuque is committed to working collaboratively with the development team to ensure
the success of the 5th & Main Project and to maximize its positive impact on our residents,
downtown district, and regional economy.
Sincerely,
Page 612 of 629
Jill Connors, Economic Development Director
Page 613 of 629
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 21, 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 of 801 Jackson Street as
Grayfield Site
The Farley & Loetscher Manufacturing ("Wilmac") building in Dubuque, IA meets the
criteria of a Grayfield Site as defined in Iowa Code Section 15.291 and Administrative
Code 261.65.2.
Per code definition, "Grayfield site" means an abandoned public building or an industrial
or commercial property that meets the following requirements:
Requirement: The property has been developed and has infrastructure in place but the
property's current use is outdated or prevents a better or more efficient use of the
property. Such property includes vacant, blighted, obsolete, or otherwise underutilized
property.
The Wilmac building overwhelmingly meets every one of the above criteria. In its current
state, the building is best served as storage space which is an incredible shame to its
legacy and potential. While the building contains some office space buildouts, the
demand for this form office space in its obsolete and sparse condition is simply
nonexistent.
Requirement: The property's improvements and infrastructure are at least twenty-five
years old and one or more of the following conditions exists. (1) Thirty percent or more of
a building located on the property that is available for occupancy has been vacant or
unoccupied for a period of twelve months or more. (2) The assessed value of the
improvements on the property has decreased by twenty-five percent or more. (3) The
property is currently being used as a parking lot. (4) The improvements on the property
no longer exist.
The extent of property "improvements" from its millworking days is made up of makeshift
office spaces which comprise a very small percentage of the buildings' square footage.
Page 614 of 629
The buildings have been vacated for 12 months, and any (theoretical) immediate
occupancy would realistically be a tenant seeking warehouse storage space, which would
not be efficient or practical given the non -operating and out of date loading docks. The
office space buildouts are obsolete, meaning the current leasehold "improvements" would
first need to be demolished before the space is retrofitted with new construction in the
unlikely event such a space was desired.
The Wilmac building came to life as one of the largest millworking manufacturing plants
in the area. More recently, the building evolved into a hodgepodge of storage, bakery,
and law office space that currently sits abandoned in the center of bustling activity and
constant historic rehabilitation and modern transformation. The Wilmac building's iconic
ivy-covered brick walls serve as a hotspot for photographers to memorialize a wide range
of life events for their clients from high school prom pictures to wedding day snapshots.
The building deserves so much more than to exist as a backdrop for photoshoots.
The redevelopment of this property would significantly address Dubuque's need for
housing and continue the expansion of the symbolic Millwork District. 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.
The Wilmac building is an iconic structure within Dubuque's revitalized Millwork District.
If not renovated fully and properly, the building will continue to decline. The sizeable
scope of work, unknown potential contaminants, and gaps in financing have been far too
great for most developers to undertake. Given Conlon Construction's skills and
experience combined with the development abilities of Farley & Loetscher LLC's
management, the team has the expertise necessary to ensure a successful project
outcome and has our full support.
Sincerely, t
Jill Connors, Economic Development Director
K
Page 615 of 629
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 26, 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 of the Iowa Street Lofts (1236-
48 Iowa Street) Project as Grayfield Site
The Iowa Street Lofts project in Dubuque, IA meets the criteria of a Grayfield Site as
defined in Iowa Code Section 15.291 and Administrative Code 261.65.2, and the City of
Dubuque supports this project and application.
Per code definition, "Grayfield site" means an abandoned, idled, or underutilized industrial
or commercial facility where expansion or redevelopment is complicated by real or
perceived environmental contamination.
Per code definition, "Grayfield site" means an abandoned public building or an industrial
or commercial property that meets all of the following requirements:
a. The property has been developed and has infrastructure in place but the
property's current use is outdated or prevents a better or more efficient use of the
property. Such property includes vacant, blighted, obsolete, or otherwise
underutilized property.
b. The property's improvements and infrastructure are at least twenty-five years
old and one or more of the following conditions exists-
(1) Thirty percent or more of a building located on the property that is
available for occupancy has been vacant or unoccupied for a period of
twelve months or more.
(2) The assessed value of the improvements on the property has decreased
by twenty-five percent or more.
(3) The property is currently being used as a parking lot. (4) The
improvements on the property no longer exist.
The Iowa Street Lofts infrastructure is outdated and prevents a better, more efficient use
of the property. The building is blighted and underutilized with property improvements and
infrastructure at least 25 years old. Over 30% of building has been vacant for over 12
months.
Page 616 of 629
There are numerous areas of floor covering, adhesives and paint coatings with perceived
environmental contamination.
The redevelopment of this property would create an impact on Dubuque's need for
housing and restore a building in the heart of the city and centrally located within the
Farmer's Market area and adjacent to City Hall.
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 unemployment despite the Covid-19 pandemic, show a sustained need for
workforce housing in the City of Dubuque.
The Iowa Street Lofts is a significant building within downtown area of Dubuque. If not
renovated fully and properly, the building will continue to decline. This project will take
historical preservation skill and grant source funding to be successful, and the proposed
development group has the experience and expertise to complete the project. The Iowa
Street Lofts has the potential to create dynamic housing solutions to support workforce
growth and to invest in the historic fabric of our community.
Sincerely, ( .
l
Jill Connors, Economic Development Director
2
Page 617 of 629