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Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 360 E. 16th StreetCity of Dubuque City Council CONSENT ITEMS # 13. Copyrighted August 17, 2026 ITEM TITLE: Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 360 E. 16th Street SUMMARY: City Manager recommending City Council approval of a letter of support to accompany the Iowa Redevelopment Tax Credit Application to the Iowa Economic Development Authority being submitted by the developer for redevelopment of 360 E. 16th Street in Dubuque. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: 1. MVM Memo Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 360 E 16th Street 2. Staff Memo 3. Letter of Support Dubuque THE CITY OF uFA�a9a av DuB E 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 360 E. 16th Street DATE: August 13, 2026 Economic Development Director Jill Connors is recommending City Council approval a letter of support to accompany the Iowa Redevelopment Tax Credit Application to the Iowa Economic Development Authority being submitted by the developer for redevelopment of 360 E. 16t" Street in Dubuque. This letter of support confirms the City's recognition that the property is eligible for the tax credit based on the state's definition of a grayfield site. Since 2022, the structure at 360 E. 16t" Street has stood vacant, its interior significantly demolished by a previous owner and its remaining infrastructure either outdated or no longer present. All existing improvements exceed 25 years in age, and the building has been entirely unoccupied for more than a year. To address these conditions, developers Andrew McCready and Josh Jansen propose rehabilitating the building to include four rental units and two off-street parking spaces, with an estimated project cost of $450,000. I concur with the recommendation and respectfully request Mayor and City Council approval. Y Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director 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: Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 360 E. 16th Street DATE: August 12, 2026 INTRODUCTION This memorandum presents for City Council review and approval a letter of support to accompany the Iowa Redevelopment Tax Credit Application to the Iowa Economic Development Authority being submitted by the developer for redevelopment of 360 E. 161h Street in Dubuque. BACKGROUND 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 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 1 st. The following project has requested a letter of support from the City to accompany its 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. Since 2022, the structure at 360 E. 16t" Street has stood vacant, its interior significantly demolished by a previous owner and its remaining infrastructure either outdated or no longer present. All existing improvements exceed 25 years in age, and the building has been entirely unoccupied for more than a year. To address these conditions, developers Andrew McCready and Josh Jansen propose rehabilitating the building to include four rental units and two off-street parking spaces, with an estimated project cost of $450,000. RECOMMENDATION I respectfully request City Council approve the submission of the attached letter supporting the aforementioned application for Iowa Redevelopment Tax Credits, confirming the City's recognition that the property is eligible for the tax credit based on the state's definition of a grayfield site. F, Dubuque THE CITY OF AII•Ame�in City \,VAN lT1. P1Y:VI. �,. DUB E ' I I ' 2007*2012*2013 Masterpiece on the Mississippi 2017*2019 August 12, 2026 Iowa Economic Development Authority (IEDA) 1963 Bell Avenue, Suite 200 Des Moines, IA 50315 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org Re: IEDA Redevelopment Tax Credit — Program Eligibility for 360 E. 16th Street, Dubuque, IA 52001 (Grayfield Site) The building located at 360 E. 16th Street, Dubuque, IA meets the criteria of a Grayfield Site as defined in Iowa Code Section 15.291 and Administrative Code 261— 65.2(15), and the City of Dubuque supports this project and application. Per code definition, "Grayfield site" means an abandoned public building or an industrial or commercial property that meets all of the following requirements: The property has been developed and has infrastructure in place, but the property's current use is outdated or prevents better or more efficient use of the property. Such property includes vacant, blighted, obsolete, or otherwise underutilized property. 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; or (4) The improvements on the property no longer exist. Since 2022, the structure at 360 E. 16th Street has stood vacant, its interior partially removed by a previous owner. What remains is aging or missing infrastructure, with all improvements dating back more than 25 years. After more than a year of complete vacancy and the loss of certain structural components, the building is primed for reinvestment and renewal Redevelopment of this property would address Dubuque's need for housing and restore a building in the Washington Neighborhood Conservation District. Housing permits within the City of Dubuque increased significantly between 2022 and 2025; however, new construction accounts for only a small portion of the total housing in Dubuque. Renovating and restoring existing building stock into new dwelling units is a sustainable practice and a great way to provide workforce housing in the City of Dubuque. This property sits at a highly visible intersection within the neighborhood, creating consistent exposure to both vehicular and pedestrian traffic. After years of vacancy and decline, the building's condition highlights the importance of thoughtful reinvestment. The project will require skilled renovation and adaptable, creative problem -solving — capabilities the owner/developer team has demonstrated in prior work. With this experience, the development team is well -positioned to transform the long -idle structure into a meaningful housing asset. Restoring the building and adding new dwelling units will strengthen workforce housing options and contribute to the continued vitality of the Washington Neighborhood and the broader Dubuque community. Sincerely, ciaw� Jill Connors, Economic Development Director City of Dubuque, Iowa K