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Letter of Support for an Extension Request to the Workforce Housing Tax Incentive Program by Millwork Flats, LLC Copyrighted June 15, 2026 City of Dubuque CONSENT ITEMS # 17. City Council ITEM TITLE: Letter of Support for an Extension Request to the Workforce Housing Tax Incentive Program by Millwork Flats, LLC SUMMARY: City Manager recommending approving a letter of support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program on behalf of Millwork Flats, LLC for a project at 1065 Jackson Street. RESOLUTION Approving a Letter of Support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program to Extend the Compliance Period for Contract No. 26-Whtip-026 on Behalf of Millwork Flats, L.L.C. for a Project at 1065 Jackson Street SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTAC H M ENTS: 1. MVM Memo Letter of Support IEDA Workforce Housing Tax Incentive Program Extending on behalf of Millwork Flats 2. Staff Memo 3. Millwork Flats WHTC Extension Support Letter 4. Resolution Page 598 of 1594 Dubuque THE CITY QF � All•li�eriea Ciry DLT B E ��, . � �� � � MaSt� Z�C� alZ t�Q Mt55ZSSZ Z zoa�•zoiz•zai3 �' pp zai�*zaig TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Approving a Letter of Support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program to Extend the Compliance Period for Contract No. 26-WHTIP-026 on behalf of Millwork Flats, LLC for a Project at 1065 Jackson Street DATE: June 11, 2026 Economic Development Director Jill Connors is recommending City Council approval of a resolution approving a letter of support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program on behalf of Millwork Flats, LLC for a project at 1065 Jackson Street. A Community Input Form also accompanies each resolution and requires signature. 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 599 of 1594 Dubuque Economic Development Department THE CITY OF � 130o Main street All-America City Dubuque,lowa 52001-4763 U� � ""�x�,`�`��``���`�'" Office(563)589-4393 � � TTY(563)690-6678 � http://www.cityofdubuque.org 2007*2012�2013 Masterpiece on the Mississippi zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Resolution Approving a Letter of Support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program to Extend the Compliance Period for Contract No. 26-WHTIP-026 on behalf of Millwork Flats, LLC for a Project at 1065 Jackson Street DATE: June 11, 2026 INTRODUCTION This memorandum presents for City Council approval a resolution approving a letter of support to the lowa Economic Development Authority Workforce Housing Tax Incentive Program on behalf of Millwork Flats, LLC for a project at 1065 Jackson Street. 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 The City of Dubuque and Millwork Flats, L.L.C. entered into a Development Agreement on June 17, 2024, for the creation of over 60 rental residential units with an investment of approximately Seventeen Million Five Hundred Thousand Dollars ($17,500,000.00) for the construction of the units. Current modeling is closer to Seventy-Six (76) units with an investment of approximately Twenty-Five Million Five Hundred Thousand Dollars ($25,500,000.00). Page 600 of 1594 In 2025, Millwork Flats, L.L.C. was awarded workforce housing tax credits up to $1 million dollars by the lowa Economic Development Authority. That award required Millwork Flats, L.L.C. to begin construction on the project by July 1, 2026. While the project fully intends to move forward, the layering and management of various incentives in the capital stack as well as the increased scope of the project have caused a delay in the commencement. Millwork Flats, L.L.C. is requesting an extension from the lowa Economic Development Authority to push back the required start date. Given the existing dearth of 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 housing options. This project meets the City Council goal of additional housing in Dubuque's downtown. The addition of the lowa 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 lowa Workforce Housing Tax Credits for housing development in Dubuque. A Community Input Form also accompanies each resolution and requires signature. 2 Page 601 of 1594 Dubuque THE CITY DF � All-Anerip 6i� l�•a nii•.r.x�.i.�.v�A i �� L ' I la� 20D7*2012•2D 13 1Vlas�erpiece or� t�e N�ississippi zoi�*zoi9 June 10, 2026 lowa Economic Development Authority Attn: Nick Sorensen, Tax Credit Program Manager 1963 Bell Ave, Des Moines, IA 50315 Re: Letter of Support— Workforce Housing Tax Incentive Program Contract No. 26-WHTIP-026 — Millwork Flats, 1065 Jackson Street, Dubuque Dear Mr. Sorensen: The City of Dubuque writes in support of Millwork Flats and of the developer's request to extend the construction commencement deadline, and the corresponding completion deadline, under the above-referenced Workforce Housing Tax Incentive award. Millwork Flats is a ground-up, mixed-use multifamily development at 1065 Jackson Street in the City's Historic Millwork District. The Millwork District Master Plan identifies this site as a priority for new-construction infill, and the project delivers the workforce housing and ground-floor commercial space the District's long-term vision calls for. The City considers it an important opportunity for the continued redevelopment of the District and for addressing the housing shortage in Dubuque and its urban core. Over the past year, the developer has concurrently advanced a multi-phase industrial development the City has supported on City-owned land with available incentives, now under active construction and progressing on schedule. As is the case for many developers working with public incentives, projects that depend on those incentives must be sequenced against one another, and that sequencing can introduce some delay. The City regards the developer's continued investment across multiple local projects as the mark of an active and responsible community development partner. The City supports multifamily redevelopment of this kind through established local programs. Fifteen-year tax increment financing is available to eligible projects, and Millwork Flats qualifies; that support remains available to the project. The City will process the corresponding Development Agreement timing through the City Council to Page 602 of 1594 align with the extended state schedule once the project timeline is confirmed, and City staff support doing so. We respectfully ask the Authority to grant the requested extension. The City of Dubuque values Millwork Flats and supports its completion in the Historic Millwork District. Sincerely, Mayor Cavanagh, City of Dubuque Page 603 of 1594 Prepared by: Ian Hatch, Assistant Economic Development Director, 1300 Main Street, Dubuque IA 52001, 563 589-4213 Return to:Adrienne Breitfelder, City Clerk, 50 E. 13"'Street, Dubuque IA 52001, 563 589-4100 RESOLUTION NO. 231-26 APPROVING A LETTER OF SUPPORT TO THE IOWA ECONOMIC DEVELOPMENT AUTHORITY WORKFORCE HOUSING TAX INCENTIVE PROGRAM TO EXTEND THE COMPLIANCE PERIOD FOR CONTRACT NO. 26-WHTIP-026 ON BEHALF OF MILLWORK FLATS, L.L.C. FOR A PROJECT AT 1065 JACKSON STREET WHEREAS, the City and Developer have executed a Development Agreement dated June 17, 2024, including the issuance of a $500,000 Forgivable Loan and Urban Tax Increment Revenue Obligations, to construct a multi-family residential property and invest approximately Twenty-Five Million Five Hundred Thousand Dollars (the Project); 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, Millwork Flats, L.L.C. has been awarded a Workforce Housing Tax Credit Incentive from the Iowa Economic Development Authority; and WHEREAS, Developer's request for an extension of the compliance period for 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 an extension of the compliance period for the Workforce Housing Tax Credit Program by Millwork Flats, L.L.C. 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 the attached letter to the Iowa Economic Development Authority Application to the Workforce Housing Tax Credit Program by Millwork Flats, L.L.C. for an extension of the Contract No. 26-WHTIP-026. Passed, approved and adopted this 15th day of June 2026. Cavanagh, Mayor Attest: -- :iQ2-Oo.00 Trish L. Gleason, Assistant City Clerk