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Letter of Support for Iowa Redevelopment Tax Credit for Property at 1739-1763 Central AvenueCity of Dubuque City Council CONSENT ITEMS # 7. Copyrighted September 8, 2026 ITEM TITLE: Letter of Support for Iowa Redevelopment Tax Credit Application for Property at 1739-1763 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 Dubuque Initiatives 1700, LLC for redevelopment of the C.A.R.E. Home (Central Avenue Housing Endeavor) at 1739-1763 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 1739-1763 Central Avenue 2. Staff Memo 3. Letter of Support Dubuque THE CITY OF uFA�a9a av DuBE 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 1739-1763 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 Dubuque Initiatives 1700, LLC for redevelopment of the C.A.R.E. Home (Central Avenue Housing Endeavor) at 1739-1763 Central Avenue in Dubuque as a grayfield site. 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 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 1739-1763 Central Avenue DATE: August 25, 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 Dubuque Initiatives 1700, LLC for redevelopment of the C.A.R.E. Home (Central Avenue Housing Endeavor) at 1739-1763 Central Avenue in Dubuque as a grayfield site. _y1T@]"`0]:00] ki I llf� 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 The property at 1739-1763 Central Avenue is currently over 30% vacant or blighted. C.A.R.E. Home will transform this deteriorating mixed -use building in the Central Avenue corridor into seven affordable two- and three -bedroom housing units for those families most in need in our community, including those that are homeless, at risk of homelessness, fleeing violence, or otherwise facing housing instability. This additional capacity is critical; recent assessments find the City is facing a significant shortage of units affordable for households earning at or below 30% Area Median Income. C.A.R.E. Home demonstrates a commitment to comprehensive care and community inclusion. C.A.R.E. Home will partner with Community Solutions of Eastern Iowa to provide critical supportive services for these households. The building is located in the heart of downtown Dubuque, near all crucial services for the newly housed including public transit, community health centers, schools, public services, and employment opportunities. We appreciate C.A.R.E. Home's dedication to redevelopment of a late-1800s building at risk of demolition by neglect, preserving the culture and aesthetics of the community. This project is in the center of the Central Avenue Corridor Initiative footprint and incorporates elements of the Central Avenue Corridor Streetscape Master Plan, both established by the City of Dubuque in collaboration with the community. This project also targets the "Livable Neighborhoods and Housing: Great Place to Live" City of Dubuque Goals for 2030. As such, C.A.R.E. Home has received $200,000 in incentives from the City of Dubuque. 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 25, 2026 Dubuque Economic Development Department kvlftyl 1300 Main Street All-ANIICO Dubuque, Iowa 52001-4763 ,11R�A, rnV:11-A au 1 I Office (563) 589-4393 I I� 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 1739-1763 Central Avenue, Dubuque, IA 52001 (Grayfield Site) On behalf of the City of Dubuque, please accept this letter expressing our full support for Dubuque Initiatives 1700, LLC's application to the Redevelopment Tax Credit Program for the C.A.R.E. Home (Central Avenue Housing Endeavor). The building located at 1739-1763 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. The property at 1739-1763 Central Avenue is currently over 30% vacant or blighted. C.A.R.E. Home will transform this deteriorating mixed -use building in the Central Avenue corridor into seven affordable two- and three -bedroom housing units for those families most in need in our community, including those that are homeless, at risk of homelessness, fleeing violence, or otherwise facing housing instability. This additional capacity is critical; recent assessments find the City is facing a significant shortage of units affordable for households earning at or below 30% AMI. C.A.R.E. Home will provide more than a roof, demonstrating a commitment to comprehensive care and community inclusion. C.A.R.E. Home will partner with Community Solutions of Eastern Iowa to provide critical supportive services for these households. The building is located in the heart of downtown Dubuque, near all crucial services for the newly housed including public transit, community health centers, schools, public services, and employment opportunities. We appreciate C.A.R.E. Home's dedication to redevelopment of a late-1800s building at risk of demolition by neglect, preserving the culture and aesthetics of the community. This project is in the center of the Central Avenue Corridor Initiative footprint and incorporates elements of the Central Avenue Corridor Streetscape Master Plan, both established by the City of Dubuque in collaboration with the community. This project also targets the "Livable Neighborhoods and Housing: Great Place to Live" City of Dubuque Goals for 2030. As such, C.A.R.E. Home has received $200,000 in incentives from the City of Dubuque. We encourage you to join us in supporting this project. Thank you for your consideration. Sincerely, Jill Connors, Economic Development Director City of Dubuque, Iowa 2