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440 West 3rd Street, LLC Workforce Housing Tax Credit Application Support Copyrighted June 1, 2026 City of Dubuque ACTION ITEMS # 6. City Council ITEM TITLE: 440 West 3rd Street, LLC Workforce Housing Tax Credit Application Support SUMMARY: City Manager recommending City Council approval of support for a Workforce Housing Tax Credit Application to the lowa Economic Development Department being submitted by 440 W 3rd St, LLC. RESOLUTION Supporting the Submission of an lowa Economic Development Authority Application to the Workforce Housing Tax Credit Program by 440 W 3rd St, LLC SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Resolution of Support for Workforce Housing Tax Credit Application for Downtown Housing Development for 440 W 3rd St, LLC 2. Staff Memo 3. Resolution of Approval Page 969 of 1000 Dubuque THE CITY OF � uhA�eMa cin DuB E ; . � , I � � I. Maste iece on the Mississi t 2oo�•zoiz•zois �P Pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution of Support for Workforce Housing Tax Credit Application for Downtown Housing Development for 440 W 3rd St, LLC DATE: May 27, 2026 Economic Development Director Jill Connors is recommending City Council approval a resolution of support for a Workforce Housing Tax Credit Application to the lowa Economic Development Department being submitted by 440 W 3�d St, LLC. 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. 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 Page 970 of 1000 Dubuque Economic Development Department THE CITY OF ' ' 1300 Main Street All•Ame�ica City Dubuque,lowa 52001-4763 U� � `��x..,�i�nx ii�:� Office(563)589-4393 , � ► TTY(563)690-6678 � http://www.cityofdubuque.org 2007*2012*2013 Masterpiece on the Mississippi 2oi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Resolution of Support for Workforce Housing Tax Credit Application for Downtown Housing Development for 440 W 3rd St, LLC DATE: May 26, 2026 INTRODUCTION This memorandum presents for City Council approval a resolution of support for a Workforce Housing Tax Credit Application to the lowa Economic Development Department being submitted by 440 W 3rd St, LLC. BACKGROUND The lowa Workforce Housing Tax Credit program provides tax benefits to developers to provide housing in lowa 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. DISCUSSION When developers submit an application to the lowa Economic Development Authority for Workforce Housing Tax Credits, they are required to attach a Resolution of Support from the municipality. This allows the municipality to provide insight into the impact each project will have on the City's housing goals. The following project has approached City staff requesting support to apply. 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 Page 971 of 1000 ($1,700,000.00). The project intends to use historic tax credits preserving a historic structure and piece of Dubuque's history. Given the dearth of affordable housing units in Dubuque, 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. This project meets the City Council goals of additional housing located in Dubuque's downtown, and the rehabilitation of an existing structure. Municipalities are limited to supporting four projects for this program in 2026. This is the fourth project requesting support. The other three were 5 units - Wilson House Apts, LLC (1243 Locust Street); 30 units - 1301 Central, LLC (1301 Central Avenue); and 14 units - Dubuque and Jackson County Habitat for Humanity (Wood Street). The addition of the lowa Workforce Housing Tax Credit to the capital stack improves the viability of this project, increasing the developers' ability to adequately address the shortage of housing in the community. RECOMMENDATION I respectfully request City Council approval of the attached Resolution supporting the aforementioned application for lowa Workforce Housing Tax Credits for housing development in Dubuque. 2 Page 972 of 1000 Prepared by: lan Hatch,Assistant Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4105 Return to:Adrienne Breitfelder, City Clerk, 50 E. 13�h Street, Dubuque IA 52001, 563 589-4100 RESOLUTION NO. -26 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, lowa: Lot 2 of City Lot 607 in the City of Dubuque, lowa, 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 powntown 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 lowa 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 lowa 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 February 16, 2026, 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 Page 973 of 1000 WHEREAS, the City Council finds that the application to the Workforce Housing Tax Credit Program by 440 W 3rd 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 lowa 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, lowa 52001. Passed, approved and adopted this 1 st day of June, 2026. Brad M. Cavanagh, Mayor Attest: Trish L. Gleason, Assistant City Clerk Page 974 of 1000