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Approval of Updates to Downtown Rehabilitation and Housing Creation Incentives Guideline DocumentsCity of Dubuque City Council ACTION ITEMS # 5. Copyrighted December 15, 2025 ITEM TITLE: Approval of Updates to Downtown Rehabilitation and Housing Creation Incentives Guideline Documents SUMMARY: City Manager recommending City Council approval of updated guideline documents of currently available financial incentives for building redevelopment and housing creation within the Greater Downtown Urban Renewal Area, with the addition of incentives for for -sale condominiums in multifamily buildings and that existing units must have been vacant for at least 3 years to qualify for City incentives. RESOLUTION Approving Updated Downtown Rehabilitation Grant Program Guidelines And Amended Downtown Housing Creation Grant Guidelines Version 2025.1 SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. Downtown Housing Creation Grant Program Guidelines 4. Downtown Rehabilitation Grant Program Guidelines 5. Resolution of Approval Page 999 of 1019 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: Approval of Updates to Downtown Rehabilitation and Housing Creation Incentives Guideline Documents DATE: December 10, 2025 Economic Development Director Jill Connors is recommending City Council approval of updated guideline documents of currently available financial incentives for building redevelopment and housing creation within the Greater Downtown Urban Renewal Area, with the addition of incentives for for -sale condominiums in multifamily buildings and that existing units must have been vacant for at least 3 years to qualify for City incentives. Dating to the early 2000s, the City has implemented several programs to support downtown revitalization and housing development in the Greater Downtown Area. The City Council has previously approved these programs and guidelines. Economic Development staff are now recommending two proposed additions to the Housing Creation Grant Program. First, formalizing the long -standing —but currently unwritten —practice that existing units must have been vacant for at least three years to qualify. Second, expanding the program to incentivize the creation of for -sale condominiums in multifamily buildings. The second proposed addition responds to the most recent housing study and current market trends. To help diversify housing options in our downtown, walkable neighborhoods, Jill recommends expanding the program to include incentives for for -sale condominiums in multifamily buildings. Specifically, this would apply the existing $10,000-per-unit grant to for -sale units located within the Greater Downtown Urban Renewal Area. The attached updated guidelines for the Downtown Housing Creation Grant Program include these modifications and require City Council approval for implementation. No new funding is required. Existing programs are funded at: • $750,000/year for downtown housing creation grants • $150,000/year for Central Avenue Corridor forgivable loans • $200,000/year for downtown rehabilitation grants Page 1000 of 1019 TIF and abatement incentives are self -funded through project -generated tax increment. I concur with the recommendation and respectfully request Mayor and City Council approval. v 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 Sandi Fowler, Interim Housing and Community Development Director Jenny Larson, Chief Financial Officer Wally Wernimont, City Planner 2 Page 1001 of 1019 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: Approval of Updates to Downtown Rehabilitation and Housing Creation Incentives Guideline Documents DATE: December 9, 2025 INTRODUCTION This memorandum presents for City Council review and approval updated guideline documents of currently available financial incentives for building redevelopment and housing creation within the Greater Downtown Urban Renewal Area, with the addition of incentives for for -sale condominiums in multifamily buildings and that existing units must have been vacant for at least 3 years to qualify for City incentives. I_TO]""0]:00] ki I llf� Dating to the early 2000s, the City has implemented several programs to support downtown revitalization and housing development in the Greater Downtown Area. These include the Downtown Rehabilitation Grant Program, Downtown Housing Creation Incentive Program, Central Avenue Corridor forgivable loan program, expansion of the Greater Downtown Urban Renewal Area, consolidation of the Downtown Urban Revitalization Area, and the use of TIF-based tools. The City Council has previously approved these programs and guidelines. DISCUSSION Economic Development staff are now recommending two proposed additions to the Housing Creation Grant Program. First, formalizing the long -standing —but currently unwritten —practice that existing units must have been vacant for at least three years to qualify. Second, expanding the program to incentivize the creation of for -sale condominiums in multifamily buildings. Page 1002 of 1019 The second proposed addition responds to the most recent housing study and current market trends. To help diversify housing options in our downtown, walkable neighborhoods, I recommend expanding the program to include incentives for for -sale condominiums in multifamily buildings. Specifically, this would apply the existing $10,000- per-unit grant to for -sale units located within the Greater Downtown Urban Renewal Area. The attached updated guidelines for the Downtown Housing Creation Grant Program include these modifications and require City Council approval for implementation. The attached guidelines for the Downtown Rehabilitation Grant Program remain unchanged from the previous approval by City Council, but are being shared as the programs are often layered to maximize redevelopment activity and return on City investment as well as to highlight City support for downtown redevelopment. I do want to make City Council aware of recent activity in the Iowa Legislature that is expected to carry into the 2026 legislative session. Throughout the 2025 session, state lawmakers debated several proposals to change Iowa's property -tax system — including adjustments to the "rollback" formula and limits on local property -tax growth — as well as proposals to revise the Tax Increment Financing (TIF) program. Although none of these major changes were enacted in 2025, legislative leaders and the Governor have indicated that property -tax and TIF reform will remain priority issues when the Legislature reconvenes. As a result, we anticipate that renewed debate in 2026 could lead to changes affecting how property -tax revenues and TIF tools support local development projects. BUDGETIMPACT No new funding is required. Existing programs are funded at: • $750,000/year for downtown housing creation grants • $150,000/year for Central Avenue Corridor forgivable loans • $200,000/year for downtown rehabilitation grants TIF and abatement incentives are self -funded through project -generated tax increment. RECOMMENDATION I respectfully request City Council approve the attached resolution approving the Downtown Rehabilitation and Housing Creation Incentives Guideline Documents, which now also include incentives for for -sale condominiums in the Greater Downtown Urban Renewal Area and that existing units must have been vacant for at least 3 years to qualify for City incentives. K Page 1003 of 1019 Cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Sandi Fowler, Interim Housing and Community Development Director Jenny Larson, Chief Financial Officer Wally Wernimont, City Planner 3 Page 1004 of 1019 THE CITY OF 191 Masterpiece on the Mississippi Dubuque All -America City NA110N . cmc: ua ; 1 I 2007-2012.2013 2017*2019 Downtown Housing Incentive Program Eligibility Guidelines Project Location & Type • Create new multifamily housing units (rental or for -sale condos) within the Greater Downtown Urban Renewal District. • Be a rehabilitation of an existing structure. • Have clearly defined start and completion timelines. Eligible Unit Types • Newly Created Units: Created in a portion of a structure never previously used as housing. • Rehabilitated Long -Vacant Units: A previously existing housing unit vacant for more than 3 years and undergoing full rehabilitation that corrects all code deficiencies and deterioration. Rehabilitation Standards • Bring the structure into full compliance with the 2021 IPMC and 2021 • Correct all unsafe, unsanitary, damaged, or deteriorated conditions, in structural, electrical, mechanical, and plumbing systems. • Repair or replace components that are defective or beyond service lifE only improvements do not qualify. • Meet all life -safety, egress, and habitability requirements. • Use durable, long-term residential materials. • Submit a comprehensive scope of work addressing all code correction to City approval. pg. 1 of 2 — version 2025.1 Page 1005 of 1019 Building Configuration • Units must generally be located above a first -floor commercial component. Design Review Requirements • Reimbursement covers labor and materials that significantly improve appearance following City of Dubuque Architectural Guidelines or Downtown Design Guidelines, as applicable. • Existing noncompliant signage must be brought into compliance as part of the project. • A detailed rendering/drawing with dimensions, materials, and architectural details must be submitted. • Deviation from the approved plan may disqualify the project. Additional City Requirements • City may require soundproofing, lighting, security, or other standards based on a neighborhood impact review. • Property owners must certify that all properties they own in Dubuque comply with all applicable City ordinances. Funding Limits • Up to $10,000 per residential unit. • Up to $750,000 per taxing parcel. • No developer fee may be paid until all City assistance is fully disbursed. • Funds are disbursed after project completion and issuance of all Certificates of Occupancy/Completion. Minimum Project Size • Projects must create at least 2 new housing units. Application Review • Applications are reviewed when complete. • Funds are awarded to projects that meet all criteria and are ready to commence within 12 months. pg. 2 of 2 — version 2025.1 Page 1006 of 1019 THE CITY 191 Masterpiece on the Mississippi Dubuque All -America City NA11ON& CT4-; U-A I I 1 I 2007-2012.2013 2017*2019 Downtown Rehabilitation Grant Program Guidelines The Downtown Rehabilitation Grant Program supports the goals of the Greater Downtown Urban Renewal Plan by encouraging rehabilitation of existing buildings, eliminating blight, improving appearance, and creating jobs and/or housing. The program is not intended for general or deferred maintenance. Eligible Applicants • Property owners within the Greater Downtown Urban Renewal Grant Amount • 1:1 matching grant up to $35,000 maximum per tax parcel; no moi grants within a larger project. Eligible Uses of Funds 1. Facade Improvements • Labor and materials to improve or restore front facades (two fa�a( buildings). • Work may include windows, paint, signage, awnings, or removing alterations. 2. Financial Consultant Costs • Fees for hiring professionals (financial consultant, attorney, accou consultant) to analyze project feasibility. pg. 1 of 2 — version 2025.1 Page 1007 of 1019 3. Planning & Design Costs • Pre -development services such as architectural and engineering fees, feasibility studies, and environmental assessments. General Requirements • Property must be within the District and be an existing structure. • Must be commercial or multi -residential for tax classification. • One grant per tax parcel; no more than two grants within a larger project. • Existing code deficiencies must be corrected; all work must comply with codes. • Owners must certify all their Dubuque properties comply with city ordinances. • Exterior changes require design review and approval. • Non -compliant signs must be brought into compliance as part of the project. • Clear scope of work including detailed plans with specifications, materials, finishes and dimensions is required. • No reimbursement for personal or family labor, or developer fees. • Deviation from the approved plan may result in disqualification. • Projects must be ready to start within 12 months. Facade Grant Requirements • Reimbursement covers labor and materials that significantly improve appearance following City of Dubuque Architectural Guidelines or Downtown Design Guidelines, as applicable. • All facades facing public rights -of -way must be improved consistently. • Landscaping or screening may qualify if it improves public -facing areas. • Mortar analysis may be required for repointing. • Funding is 1:1 match after project completion and certificate of occupancy. Financial Consultant Grant Requirements • Reimbursement only for professional consultant fees i.e., accountant, attorney, tax credit consultant. • Funding is 1:1 match after project completion and certificate of occupancy. Planning & Design Grant Requirements • Covers pre -construction professional services i.e., architect, engineer, feasibility study, environmental assessment. • Owner/developer fees are not eligible. • Funding is 1:1 match after project completion and certificate of occupancy. Page 1008 of 1019 Prepared by Jill M Connors Economic Development 1300 Main St., Dubuque IA 52001 (563) 589-4393 Return to Adrienne N. Breitfelder, City Clerk 50 W. 13"' St., Dubuque IA 52001 (563) 589-4121 RESOLUTION NO. 403-25 APPROVING UPDATED DOWNTOWN REHABILITATION GRANT PROGRAM GUIDELINES AND AMENDED DOWNTOWN HOUSING CREATION GRANT GUIDELINES VERSION 2025.1. WHEREAS, the City Council of the City of Dubuque has identified "Livable Neighborhoods and Housing: Great Place to Live" as one of its 2030 Goals; and WHEREAS, the City offers financial incentives in the form of grants for the redevelopment of buildings and the creation of housing in the Greater Downtown Urban Renewal Area; and WHEREAS, City staff propose to include for -sale condominiums as an eligible project type for a Downtown Housing Creation Grant; and Whereas, City staff propose to include a requirement that existing housing units be vacant for a minimum of three years to be eligible for a Downtown Housing Creation Grant; and WHEREAS, City staff have prepared Updated Downtown Rehabilitation Grant Program Guidelines and Amended Downtown Housing Creation Grant Guidelines attached hereto to reflect these proposed eligibility criteria; and WHEREAS, the City Council finds that it is in the best interests of the City of Dubuque to adopt these Grant Guidelines. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Updated Downtown Rehabilitation Grant Program Guidelines and Amended Downtown Housing Creation Grant Guidelines are hereby approved. Section 2. That the City Manager is authorized to negotiate agreements that carry out the recommendations in the Updated Downtown Rehabilitation Grant Program Guidelines and Amended Downtown Housing Creation Grant Guidelines. Section 3. That the City Clerk of the City of Dubuque, Iowa is hereby authorized and directed to file a certified copy of this Resolution in the office of the Dubuque County Auditor. PASSED, APPROVED and ADOPTED this 15t" day of December, 2025. ATTEST: 9W'2 71Z $a, Z- 14 Adrienne N. Breitfelde , City Clerk Br - C' gh, Mayor 2 Adrienne Breitfelder From: Adrienne Breitfelder Sent: Wednesday, December 17, 2025 11:47 AM To: keith.lucy@dubuquecountyiowa.gov Cc: Jill Connors Subject: City of Dubuque Certified Resolution on Grant Program Guidelines Attachments: Resolution No. 403-25.pdf, Downtown Rehabilitation and Housing Creation Incentives Guideline Documents.pdf Hello Keith, As instructed in the resolution, I am providing you with a certified copy of City of Dubuque Resolution No. 403-25 Approving Updated Downtown Rehabilitation Grant Program Guidelines and Amended Downtown Housing Creation Grant Guidelines Version 2025.1 have also attached a copy of the Downtown Rehabilitation Grant Program Guidelines and Amended Downtown Housing Creation Grant Guidelines. Thank you, Adrienne THE C DIUB TE Masterpiece on the Mississippi Adrienne Breitfelder, CMC City Clerk I City of Dubuque City Hall 150 W. 13th Street Dubuque, Iowa 52001 563-589-4121 Lf w oZnZozr] I