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
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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.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 599 of 1594
Dubuque Economic Development
Department
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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
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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