Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 2541 Central AvenueCity of Dubuque
City Council
CONSENT ITEMS # 6.
Copyrighted
September 8, 2026
ITEM TITLE: Letter of Support for Iowa Redevelopment Tax Credit
Application for Property at 2541 Central Avenue
SUMMARY: City Manager recommending City Council approval of the
submission 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 2541 Central Avenue in Dubuque as a
grayfield site.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo Letter of Support for Iowa Redevelopment Tax Credit Application for
Property at 2541 Central Avenue
2. Staff Memo
3. Letter of Support
Dubuque
THE CITY OF
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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 2541 Central Avenue
DATE: August 31, 2026
Economic Development Director Jill Connors is recommending City Council approval of
the submission 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 2541 Central Avenue in Dubuque as a grayfield site.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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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 2541 Central Avenue
DATE: August 24, 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 2541
Central Avenue in Dubuque as a grayfield site.
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
While the ground floor of 2541 Central Avenue has historically supported commercial use,
the second floor — approximately 50% of the building's occupiable area — had remained
vacant and underutilized since approximately 1991.
The redevelopment of the property by Hitzler Rental, LLC will return this long -vacant portion
of the property to productive use through the creation of five residential units while
preserving commercial space on the ground floor.
The City of Dubuque has previously demonstrated its support for this redevelopment
through the award of fagade improvement assistance and apartment creation incentives
for the property. These investments reflect the City's commitment to the successful
redevelopment of 2541 Central Avenue and continued revitalization of the Central Avenue
corridor.
The project will rehabilitate an existing building, create additional housing, support
commercial activity, increase utilization of existing infrastructure, and contribute to
neighborhood reinvestment.
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,
THE CITY OF
DUB E
Masterpiece on the Mississippi
August 24, 2026
Dubuque
Economic Development
Department
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1300 Main Street
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Dubuque, Iowa 52001-4763
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Office (563) 589-4393
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TTY (563) 690-6678
http://www.cityofdubuque.org
2007.2012-2013
2017*2019
Iowa Economic Development Authority (IEDA)
1963 Bell Avenue, Suite 200
Des Moines, IA 50315
Re: IEDA Redevelopment Tax Credit — Program Eligibility for 2541 Central Avenue,
Dubuque, IA 52001 (Grayfield Site)
The building located at 2541 Central Avenue, 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.
While the ground floor has historically supported commercial use, the second floor —
approximately 50% of the building's occupiable area — had remained vacant and
underutilized since approximately 1991.
The redevelopment of the property by Hitzler Rental, LLC will return this long -vacant
portion of the property to productive use through the creation of five residential units while
preserving commercial space on the ground floor.
The City of Dubuque has previously demonstrated its support for this redevelopment
through the award of fagade improvement assistance and apartment creation incentives
for the property. These investments reflect the City's commitment to the successful
redevelopment of 2541 Central Avenue and continued revitalization of the Central Avenue
corridor.
The project will rehabilitate an existing building, create additional housing, support
commercial activity, increase utilization of existing infrastructure, and contribute to
neighborhood reinvestment.
The City of Dubuque supports the redevelopment of 2541 Central Avenue and its
application to the Iowa Economic Development Authority's Redevelopment Tax Credit
Program.
Sincerely,
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Jill Connors, Economic Development Director
City of Dubuque, Iowa
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