Iowa Inn Stout Pl Urban Revit DCITY OF DUBUQUE, IOWA
MEMORANDUM
February 21, 2001
TO:
FROM:
SUBJECT:
Michael Van Milligen, City ~,~ana~~.~
Pamela Myhre, Acting Co~ffm'ty and Economic D~elopment Director
FY 2001 Annual Action Plan - Amendment 3
INTRODUCTION
This memorandum presents for City Council consideration proposed changes in the City's
Community Development Block Grant (CDBG) FY 2001 Annual Action Plan. These changes
provide for the allocation of unanticipated CDBG revenue to the rehabilitation of the Iowa Inn.
BACKGROUND
Federal rules require that each year a city must prepare and file an Annual Action Plan prior to
receipt of its CDBG entitlement. The Annual Plan is adopted following a public participation
process which includes a published notice, a public comment period, and a public heating. A .
city must follow its adopted annual plan as it expends entitlement funds. The City's current plan
was adopted with the budget in March, 2000, and amended in August and December.
In December, the City of Dubuque received a payment of $263,239 fi:om Cooper Wagon Factory
Development in settlement of its CDBG Loan. Of this amount, $11,334 was expected this fiscal
year as regular loan payments and $251,905 represents unanticipated revenue. Federal rules
require that if the City's revenues or activities change, the City must amend its annual plan.
The proposed amendment to the CDBG FY 2001 Annual Action Plan is being requested to
facilitate $165,000 of CDBG funding for the rehabilitation of the Iowa Inn property at 125 West
9th Street. The property has been sold to MetroPlains Development who propose to create 31
low/moderate income residential apartment units.
DISCUSSION
The proposed amendment to the Annual Action Plan: I) increases revenue by adding $251,905
to Program Income; 2) establishes a new activity "Iowa Inn Rehabilitation" with funding of
$165,000; and 3) allocates the remaining $86,905 to Contingency. The amendment also provides
that the Iowa Inn Rehabilitation activity is intended to meet the national objective of the CDBG
program for low-moderate income housing.
A notice regarding the proposed amendment was published 30 days prior to the public hearing.
This notice advised the public of the general nature of the amendment, invited their comments
and notified them of a proposed public heating. This initiated a 30-day public comment period
on the proposed amendment as provided in the Citizen Participation Plan.
The Community Development Advisory Commission reviewed the proposed amendment at a
public hearing on Thursday, February 15, 2001. At the public heating, representatives of the
Dubuque Landlords Association and other citizens expressed opposition to the project.
Representatives of the Dubuque County Historical Society and the Premier Bank spoke in favor
of the amendment. Following the public heating, the Commission voted to approve the proposed
amendment and recommend City Council approval.
RECOMMENDATION
I recommend that the City Council approve the above-described Amendment 3 to the City's FY
2001 ( Program Year 2000) Annual Action Plan for the use of CDBG funds. These changes will
allow the City to expend funds for the rehabilitation of the Iowa Inn for low income housing.
ACTION STEP
The Action Step is for the City Council to adopt the attached resolution.
Prepared by Aggie Kramer, Community Development Specialist
RESOLUTION NO. 86-01
RESOLUTION APPROVING AMENDMENT 3 TO THE FISCAL YEAR
2001 ( PROGRAM YEAR 2000) ANNUAL ACTION PLAN FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
Whereas, the City of Dubuque has prepared and filed with the U.S. Department of
Housing and Urban Development an Annual Action Plan for Fiscal Year 2001 ( Program Year
2000); and
Whereas, the City has amended the Annual Plan on August 21, 2000 and December 4,
2000; and
Whereas, the City now desires to amend said Annual Plan to recognize receipt of
additional income and to allocate funds as per the attached Exhibit A; and
Whereas, said amendment is a substantial amendment as provided in the City's Citizen
Participation Plan and must therefore be approved by resolution of the City Council after a public
heating by the Community Development Advisory Commission; and
Whereas, the City advertised a public comment period beginning January 14, 2001; and
whereas, the Community Development Advisory Commission reviewed the proposed
amendment at a public hearing on February 15, 2001, and has voted to approve said amendment
and to recommend approval by the City Council.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE C1TY OF
DUBUQUE, IOWA:
Section 1. 2rt~at Amendment 3 to the Fiscal Year 2001 (Program Year 2000) Annual
Action Plan for the Community Development Block Grant Program hereto attached as Exhibit A
is hereby approved.
Section 2. That the City Manager is hereby authorized and directed to submit a copy of
this resolution to the U. S. Department of Housing and Urban Development.
Passed, approved and adopted this 5th day of March, 20Q1.
John H. Markham, Mayor Pro-Tem
/s/ Jeanne F. Schneider, City Clekr
Amendment No 3
Community Development Block Grant (CDBG)
FY 2001 Annual Action Plan Amendment
Program Year 2000 July 1, 2000 to June 30, 2001
City of Dubuque, Iowa B-00-MC-19-004
Exhibit A
Funding Sources
Projected Program Income
Original Amendment Change
Statement
$893,935 $1,t45,840 +251,905
Proposed Activities/Costs
Activity Name National
and Description Objective
Implementing Original Amendment Change
Agency Statement
Iowa Ina Rehabilitation
Contingency
Low/Moderate Housing 0 $165,000 + $165,000
Income Housing Services
Dept
$68,733 $155,638 + $86,905
This amendment will recognize receipt of additional program income of $$251,905 from the repayment of the
Cooper Wagon Factory Developm~ot. CDBG loan. Funds in the amount of $165,000 are proposed to be utilized for
the rehabilitation of the Iowa Inn property at 125 West 9th Street into 32 residential apartment units.
FT°: Mike Va~lligen,~ City Manager
rom: David Harris, Housing Services Departmem
CITY OF DUBUQUE, IOWA
MEMORANDUM
16 February 01
Re: Iowa Inn - Request for additional funds
Introduction
The purpose of this memorandum is to provide information regarding the recommendation of the
Community Development Commission for an amendment to the FY01 CDBG budget and
resulting loan of $t65 000 for the Iowa Inn project.
Background
By action taken at its 1 May 2000 meeting, the City Council approved MetroPlains Development
Corporation, from St Paul, Minnesota, as the preferred developer for the Iowa Inn project; and
passed resolutions approving a MetroPlains application to the Iowa Finance Authority for homing
tax credits and appro~ng City financial assistance including a $220 000 Downtown Rebab
Program loan, $180 000 HUD Special Purpose Program loan and tax benefits accruing from
designation of the site as an urban revitalization district.
Discussion
The WA tax credit application was subsequently approved and MetroPlains purchased the
property, fi:om the Iowa Housing Corporation. However, in January we discovered a financing
problem. Under an interpretation of the IRS Section 42 regulations (the Low Income Housing
Tax Credit program), it was determined that the City's Special Purpose Program loan could not
be included in the "qualified basis" for project funding. This had the effect of reducing the
allowable tax credits, by $165 000, producing a funding short-fall for the project in that amount.
We proposed that available CDBG funds be loaned to complete the necessary project financing.
This action was considered at public hearing by the Community Development Commission, at its
15 February meeting, passed and recommended for approval to the City Council.
The $165 000 in CDBG funds is proposed to be made available to MetroPlains as a 15-year, 3%
interest loan, with payments deferred for the first five years. In addition to assisting the Iowa Inn
project, this action will assist the City in spending down the Community Development Block
Grant funds balance, in satisfaction of HUD regulations regarding expenditure schedules. As
well, use of CDBG funds, although only in the amount of $165 000 for a $3.4 million project; will
trigger HUD regulations requiring payment of prevailing wages for all coustmction work,
guaranteeing union-seale rotes for all workers.
cc: Pam Myhre, Acting Director, CED Department
· ~/88x01 14:36 METROPLAINS DEVELOPMENT a 31958B424~ N0.966 P002×002
·
January 9, 2001
o/ I ETROPLAIN$
David Harris
City of'Dubuque Housing S~vic~s
1805 Central Avenue
Dubuque IA 52001-3610
Dear David:
I am writing in follow-up to oar phone conversation regarding the use of the HUD Special
Purpose Grant for the redevelopment of the Iowa Inn The financing for this redevelopment is
significantly funded fi.om proceeds of the housing and historic tax credit, HErD Special Purpose
Grants are not includable in basis for either credit b~cause they are classified as Federal Funds,
The impact on the project is that the use of the Special Purpose Grant is not as valuable a~ it
appears as thc removal of this source fi.om thc eligible basis calculation results in a $1657000
Emancing gap.
It is for this reason that the development is rexluesting mi additional $165,000 in CDBG funds to
solve this dilcmma.
Thank you for your consid~ratiom
Sincerely,
///Jean Richard
CiTY Of DUBUQUE, IOWA
MEMORANDUM
1 March O1
To: Mike,Van Milligen, City Manager
\\\
FrOm: Da~'~' '~rlarris, Housing Services Department
Re: Council meeting March 5 - Review of Iowa Inn proposal
Attached is the packet of information considered by the City Council at its April meeting. At this
meeting, approvals were granted for selection of MetroPlains Development as the preferred
developer of the Inn; for a package of City financial assistance previously approved for the this
project (to the Iowa Housing Corporation); and endorsement of the MetroPlains application to
the Iowa Finance Authority for housing tax credits.
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 27, 2000
TO: The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT.'
Development Proposal for Iowa Inn
Housing Services Manager David Harris is recommending that MetroPlains Development
replace the Iowa Housing Corporation as owner and developer of the iowa Inn project.
The Iowa Housing Corporation (IHC} is currently the owner of the Iowa Inn. The City of
Dubuque provided a CDBG loan in May of 1997 to IHC for purchase of the property and is
currently the first mortgage holder.
The IHC, in February, voted to cease operations and has made an accepted offer to cede
its assets to the State of Iowa. The Governor's Office is now examining IHC's corporate
holdings and is expected to make a decision regarding disposition within the next 30-60
days.
MetroPlains Development's plan for the Iowa Inn would differ from the Iowa Housing
Corporation in that both buildings would be saved and rehabilitated, where the IHC had
proposed tearing down the eastern building.
MetroPlains Development would still only be creating 32 rental units, but they would be
larger units than previous plans. However, they would not be creating the same number of
on-site parking spaces, so they would require permits to use 31 spaces in the City parking
lot across the street instead of 16 spaces in the previous plan:
I concur with the recommendation and respectfully request Mayor and City Council
approval.
IV~chael C. Van Milligen
MCVM/dd
Attachment
CC:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Da~/id~Harn.'.s, Housing Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
25 April O0
To: Mike Van Milligen, City Manager
From: David Harris, Housing Services Department
Re: Development proposal for Stout Place
Introduction
The purpose of this memorandum is reqUest the City Council to approve the request of
MetroPlains Development to replace the Iowa Housing Corporation as owner and developer of
the Iowa Inn/Stout Place project.
Background
The Iowa Housing Corporation (IHC) is currently the owner of the Iowa Inn. The City of
Dubuque provided a CDBG loan, in May 97, to IHC for purchase of the property and is currently
the first mortgage holder.
The Housing Corporation in February voted to cease operations and has made an accepted offer
to cede its assets to the State of Iowa. The Governor's Office is now examining IHC's corporate
holdings and is expected to make a decision regarding disposition within the next 30-60 days.
Discussion
Housing Department staffha~ held discussions with other developers interested in this project.
MetroPlains Development, a St Paul-based developer of housing tax credit properties, has worked
with staffto formulate a proposal MetroPlaius has provided a packet of information on the
structure of the company and a history of properties developed throughout the Midwest; this is
attached to this memorandum. In particular, Metro's redevelopment of the Hotel Burlington - as
its ~ Iowa project - ha~ established a reputation locally for the corporation for quality work
in the rehabilitation and restoration of historic structures. Their proposal is to do the same in
Dubuque for the Iowa Inn.
Development Proposal
While the Inn is again proposed to he developed in accordance with guidelines for the federal
affordable housing tax credit program, it differs significantly in tlmt Metro's concept is to
rehabilitate both buildings on the site. The previous proposal called for demolition of the 1916
former YMCA building and restoration ofthe 1894 ,gymnasium building. The 32 units to he
included would have necessitated conversion of all common areas into apartments; as well, the
trait sizes would have ranged fi.om 480 to 640 square feet.
Metro's proposal, utilizing both buildings - but adding no units - will result in restoration of the
first floor common entry and lobby areas. As well, the apartments will range in size fi:om 650 to
900 square feet, better reflecting trends in the current rental market.
The rationale for this approach, in addition to respect for historic preservation, has to do with the
availab'dity of financing. Preservation of both structures will qualify the project for elig~ility for
federal historic tax credits, providing nearly $500 000 in additional investor equity. This in turn
will decrease the housing tax credit allocation requested fi.om the Iowa Finance Authority and
increase the probability of favorable application decision.
Re-use of both buildings, however, will increase the parking needs for the project. Previously a
concept agreement had been reached with the Council for approval of 16 parking permits, for
building residents, to park in the City-owned surface lot on Iowa Street. The City was to have
been fully reimbursed for lost meter revenue for these spaces, carded as a project cost of the
development. The Metro proposal is for 31 permits, with the same cost reimbursement
agreement.
The deadline for submission of this year's application for tax credits, to the Finance Authority, is
15 July. As this schedule requires the developer to begin design and feas~ility analysis quickly,
MetroPlains is requesting an indication of the City of Dubuque's support of this partnership, at
this time. Specifically, Melro is requesting the following:
1. The City approve the attached resolution ("IFA Exhibit 39"), signifying the Council's
endorsement of MetroPlaln~ as the intended applicant, to the Iowa Finance Authority,
for housing tax credits for the Iowa Inn project, as proposed.
2. Reiteration of the City's financial support, as previously committed to the Iowa
Housing Corporation, as outlined in "IFA Exhibit 37: Local Contributing Effort
Verification"
(This support is actually less than previously committed; the "Tax Increment
Financing" amount, of $220 000, was previously approved for the Housing
Corporation in the amount of $300 000.)
3. The City "select MetroPlains as the preferred developer" ofthe project.
(AS the Iowa Housing Corporation is stillthe owner of the property, actual transfer of
the deed, and the City's mortgage, cannot occur until the State' s action to receive and
transfer the Corporation's assets is completed.)
Finally, MetroPlains is requesting the City, between this date and 1 July, to:
1. Work with the Governor's Office and the Finance Authority to facilitate transfer of
ownership of the property.
2. Negotiate a mutually acceptable agreement regarding transfer of the City's CDBG first
mortgage.
3. Negotiate a mutually acceptable agreement regarding the dedication of Iowa Street
surface lot parking spaces
Action Step
The actions requested of the City Council are to:
1. Select MetroPlains as the preferred developer for rehabilitation of the Iowa Inn/Stout
Place, according to the development concept as proposed;
2. Authorize the Mayor's execution oftYA Extu'bit 39, a resolution supporting the
application of MetroPlains to the Iowa Finance Authority for housing tax credits; and
3. Authorize the City Manager's execution of IFA Exhibit 37, re-committing financial
assistance to MetroPlains Development for the proposed project, as previously
approved for the Iowa Housing Corporation.
City Manager's Office
50 West 13th Street
Dubuque, Iowa 520014864
(319) 5894110
(319) 5894149 FAX
IFA Exhibit 37
LOCAL CONTRIBUTING EFFORT VERIFICATION
Low-Income Housing Tax Credit Program
Iowa Finance Authority
100 East Grand Suitq 250
Des Moines, tA 50309
RE:
Iowa Inn
125 W 9~ Street, Dubuque, Iowa
Metro Plab. s Development, LLC
Ladies and Gentlemen:
This letter will verify the local contributing effo~ required by the Qualified Allocation Plan and Iowa
Code Section 16.4. As you know, a local contributing effort can be provided by local government units or
by local or regional agencies public or private. The Authority's rules provide that any ofthe fullowin_,,
items will constitute a local contributing effort: v
Payment of governmental funds by a political subdivision or governmental entity, or by a
private'agency. Evidence of payment and the authority to provide the funds shall be
furnished upon request of the Authority.
Rcal property which ma:y be vacant or improved property, suitable, in thejudgmerit of the
Authority, to the proposed housing project. Liens and encumbrances, if any shall be
disclosed to satisfaction of the Authority.
Personal property which may include appliances, furnishing, property maintenance
tools, re-modeling material to be purchased subsequent to project approval, and any other
personal property., which in the judgment of the Authority, is of relevance to the proposed
housing project.
The Authority may consider any type of proposed local contributing effort, in addition to other
than the above. Proposals which, in the judgment ofthe Authority are truly innovative will
receive priority. Local contributing efforts may be combined by type of'source.
Service People Integrity ResponMbility Innovation Teamwork
Based on the forgoing, the local contributing effort for the above named Project by City of Dubuque is
as follows:
Item [ Amount/Value Anthority for
Contribution
Payment of governmental funds
Cash payment 10,000
Tax Increment Financing 220,000
Tax Abatement 248,000
Enterprise Zone designation
Other: Please describe
City Loan 180,000
Payment of funds from a private aeency
Payment of funds fi'om a public agency
Contribution ofland1
Contribution of personal property2
Other3
We understand that the Authority will rely on thes~ valuations to determine whether the Sponsor has met
the requirements of the QAP for a local contn'buting effort.
Gity~r Chief Financia~t-Officer
1 If land is contributed, the Authority requires a description of the property to be attached to this letter,
and a preliminary title opinion indicating that the land is held fr~ and clear of any encumbrances
2 If personal property is contributed, the Authority requires a complete inventory of the personality,
whether it is new or used, and the value of each item slated separately.
3 If the Sponsor is proposing some other type o£ local contributing effort, the contribution must be fully
described and a value placed on the contribution by the local governmental unit by the local governmental
unit.
IFA EXHIBIT 39
I?~SOLUTION 184-00
~AS, the City of Dubuque, Iowa, has been informed by Mr. hoPlains
I~velopmcnt, LLC that a low income housing tax ~ application (will or has been)
filed with th~ Iowa Fmanc~ Authority for thc dcveJopment of affordable rental housing to~
be Ioc, ated at 125 W 9~ Strceg Dubuque, Iowa with al~d d~ga'iption as follows:
City lot 168 and 16gA and the south *A ofclty lot 167, City of Dulmque, Iowa
WHERE/cS, this housing project will contain approximately 31 anits;
WHEREAS, th.-' units will be targ~t~l to cldgrty and general oczupancy;
the project will be a acquisition and rehabilitation;
WHF_REAS, the property will have the following amcnif~cs:
On site laundry, communiq~ room, ~levator and cuahotled entry, units will be full
sized one 'and two bedroom apartments, kitclw, m will have full size ranges and
refrigerators.
~AS, the developer has rcquest~l local ~-~igancc through tax incremenl
finandng, a tax abatement, lead aBatcmant loan, CDBO loan, city loan
NOW, T'r~Jtt~OILE, BE IT RESOLVED by the City of Dubuque G°verning
Body, that wc support and approve the development of the aforesaid housing in our
community, subjc~ to city ordinances and the building permit proces~ The resolution is
effective until 4/20/2001. In thc c-vent that any of the charab-teristics mentioned above
should change prior to the issuance of a building peraik, this resolution is null and void.
,ADOPTED BY ~ GOVERNING BODY AND APPROVED BY THE
MA. YOR, this 1 st day of ~ay ,200_
! Mayor
ATTEST:
~ity Clerk
SEAL
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 1, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amendment to Stout Place Urban Revitalization District Iowa Inn Project
Due to a change in property ownership and resultant delay in rehabilitation of the Iowa Inn,
Acting Community and Economic Development Director Pam Myhre is recommending an
Amendment to the Stout Place Urban Revitalization Plan to extend the duration of that plan for
three years.
In addition, under an interpretation of the Low Income Housing Tax Credit Program, itwas
determined that the City's Special Purpose Program Loan to MetroPlains Development could not
be included in the "qualified basis" for project funding. This had the effect of reducing the
allowable mx credits by $165,000, producing a funding shortfall for the project in that amount.
Because of the sale of the Cooper Wagon Works Building, the City of Dubuque Commtmity
Development Block Grant Program received an unexpected loan closeout payment of $263,239.
To allow the Iowa Inn Project to proceed, Acting Community and Economic Development
Director Pam Myhre is recommending a $165,000 Community Development Block Grant Loan
to MetroPlains as a low-interest 15-year loan. This proposed amendment was approved by the
Community Development Advisory Commission at a public hearing on February 15, 2001.
I concur with the recommendations and respectfully request Mayor and City Council approval
for the Amendment to the Stout Place Urban Revitalization Plan and to the City's Community
Development Block Ch-ant Fiscal Year 2001 Annual Action Plan.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Pamela Myhre, Acting Community & EconOmic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
February27,2001
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City M~nager ~. ~,_ /~ _
Pamela Myhre, Acting Com~fiity & Economic Dev~pment Directo~'"'-
Amendment to Stout Place Urban Revitalization District
Iowa Inn Project
INTRODUCTION
This memorandum submits for City Council review and approval an ordinance amending the City's
Stout Place (Iowa Inn) Urban Revitalization Plan. The amended plan will extend the duration of the
plan and updates information in the plan on property ownership and proposed rehabilitation of the
property.
BACKGROUND
On Monday February 5, 2001, the City Council received the attached memorandum recommending an
amendment to the City's Stout Place/Iowa Inn Urban Revitalization Plan. The council acted to set a
public hearing on March 5, 2001. Notice of the public hearings has been published as provided in the
Iowa Code.
As provided in the City Code of Ordinances, the proposed amendment was forwarded to the Long
Range Planning Commission for review at the February 21, 2001 meeting. The Long Range Planning
Commission did not meet due to failure to obtain a quorum. In December 1997, the Long Range
Planning Commission reviewed and recommended approval of the Stout Place Urban Revitalization
Area Plan and determined that the plan was consistent with the objectives in the Land Use and Urban
Design, Housing and Human Services, and Public Safety elements of the Comprehensive Plan.
DISCUSSION
Attached to this memorandum is an ordinance which amends the Stout Place Urban Revitalization
Plan. This amendment extends the duration of the plan for three years and updates information on the
current owner (Metro Plains Development) and proposed rehabilitation of the property.
RECOMMENDATION
I recommend that the existing Stout Place Urban Revitalization District Plan be amended to extend
the duration of the plan.
ACTION
The requested action is for the City Conncil to adopt the attached ordinance amending the Stout
Place/Iowa Inn Urban Revitalization District Plan.
F:\USERS\jocormor\wpdocs\Urban Revitalization\Urban Revite-Iowa Inn\memo.amendordinaace
Prepared by: Jerelvn O'Comlor. Neighborhood Development Specialist Address: 50 W. 13~ St., Citw Hall Telephone: 589-4393
ORDINANCE NO. 13-01
AN ORDINANCE AMENDING CITY OF DUBUQUE ORDINANCE #12-98
ESTABLISHING THE STOUT PLACE/IOWA INN URBAN REVITALIZATION AREA
TO EXTEND THE DURATION OF THE URBAN REVITALIZATION PLAN
Whereas, the City of Dubuque Ordinance #12-98 established the Stout Place Urban
Revitalization Area; and
Whereas, the Stout Place Urban Revitalization Area Plan's duration will expire on March
16, 2001; and
Whereas, due to a change in property ownership and resultant delay in rehabilitation of the
Stout Place (Iowa Inn) development, an amendment to the Stout Place Urban Revitalization Plan is
necessm-y to extend the duration of the plan; and
Whereas, a public hearing has been held on this amendment to the Stout Place Urban
Revitalization Plan, and ail other requirements of the Iowa Code Chapter 404 have been met.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The Amended Stout Place/Iowa Inn Urban Revitaiization Plan hereto attached is
hereby adopted and the properties within said described area shail be subject to the provisions of
said Plan.
Passed, approved, and adopted this 5th day of March, 2001.
John H. Markham, Mayor Pro-Tem
ATTEST:
Jeanne F. Schneider, City Clerk
F:\USERS\joconuor\wpdoes\Urbau Revitalization\Urban Revite-Iowa hm\stoul orcEumace.wpd
Prepared by: Jerelyn O'Connor, Neighborhood Development Specialist
MAR ! PM 12-' i 5
Address: 50 W. 13a St.. City Hail
KATHY FLYNH THURLOt¥
COUNTY RECORDER
DUBU~IUE CO., ~O~'A FEES
Telephone: 5894393
ORDINANCE NO. 13--01
AN ORDINANCE AMENDING CITY OF DUBUQUE ORDINANCE #12-98
ESTABLISHING THE STOUT PLACE/IOWA INN URBAN REVITALIZATION AREA
TO EXTEND THE DURATION OF THE URBAN REVITALIZATION PLAN
Whereas, the City of Dubuque Ordinance #12-98 established the Stout Place Urban
Revitalization Area; and
~Vhereas, the Stout Place Urban Revitalization Area Plan's duration will expire on March
16, 2001; and
Whereas, due to a change in property ownership and resultant delay in rehabilitation of the
Stout Place (Iowa Inn) development, an amendment to the Stout Place Urban Revitalization Plan is
necessary to extend the duration of the plan; and
Whereas, a public hearing has been held on this amendment to the Stout Place Urban
Revitalization Plan, and all other requirements of the Iowa Code Chapter 404 have been met.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section t. The Amended Stout Place/Iowa Inn Urban Revitalization Plan hereto attached is
hereby adopted and the properties within said described area shall be subject.to the provisions of
said Plan.
Passed, approved, and adopted this 5~h day of March, 2001.
John H. Markham, Mayor Pro-Tem
ATTEST:
Jeanne F. Schneider, City Clerk
STOUT PLACE / IOWA INN URBAN REVITALIZATION PLAN
November 1997
1.0 Introduction
Amended March 2001
The State of Iowa, under Iowa Code Chapter 404, allows cities to designate areas as urban
revitalization areas. Under this Act, improvements to qualified areas may receive a total or
partial exemption f~om property taxes for a specified number of years. The exemptions are
intended to stimulate private investment by reducing the tax increase related to property
improvements.
Once an area is deemed to meet the requirements of Chapter 404, a plan must be established
which identifies the are boundaries, property owners, existing conditions, proposed plans and
basic abatement provisions for the revitalization area.
This plan provides for the designation of the Stout Place/Iowa Inn Urban Revitalization Area (the
Area) to create an affordable housing project by the rehabilitation of the former Iowa Inn.
2.0 The Area
2.1 Location
The Area is located at the northwest comer of W. Ninth Street and Iowa Street as shown
on Exhibit #1. The legal description of the Area is as follows:
South ½ of City Lot 167, City Lot 168 and City Lot 168A all in Section 24,
Township 89 North, Range 2 East, 5th P.M., Dubuque County, Iowa.
2.2 Zoning
The Area is zoned OR (Office Residential).
2.3 Existing and Proposed Land Use
The Area contains the former YMCA which had been converted to single rooming units.
The building is now vacant. The proposed land use is a_er-2 31 unit apartment building to
dbyth ...... ~ ......................... ' .........
· ~,,,,=,u~, m,u a ~l.m~ ,~u, uu,. renovation and restoiat~on of the two existing structures;
the former YMCA building and the gymnasium building.
2.4 Assessed Valuations and Owners of Record
The existing assessed valuation of the real estate in the Area, by land and building values,
is included as Exhibit #2. This addendum also contains a list of the names and addresses
of the owners of record of real estate within the Area.
2.5 City Services
There are no current plans to expand existing city services in the Area as it is already fully
served by infrastructure and publicly provided services. However, the Area has been
included in the Downtown Dubuque Urban Renewal District.
3.0 Relocation
13 tenants were relocated and Iowa Housing Corporation, the property owner at the time the area
was originally designated as an urban revitalization area, paid all relocation costs. No further
relocation is required.
4.0 Qualification of Area
In October, 1997 a building condition survey was conducted by city staff. Land use
information concerning existing uses, building age and condition, and historic
significance was collected in order to document the conditions of dilapidation and
deteriorate as defmed by Iowa Code Section 404.1 (3).
4.1 Building Conditions
Major exterior structural components were considered in rating the condition of the Stout
Place/Iowa Inn. Consideration was given to the following elements prior to rating:
structural condition, paint quality, window condition, brick quality and condition of any
facade embellishments. These components w~re ranked as either good, fair or poor under
the following criteria:
Good: The building appears to be structurally sound and free of major defects.
Ongoing maintenance such as window repair, re-pointing and painting was
evident. However, maintenance may not be compatible to the historical or
architectural significance of the building.
Fair: The building has sufficient defects which identify conditions of wood or
mortar decay, window repair, roof repair and tuck-pointing needs exist.
Poor: The building has been the victim of deferred maintenance. Serious
structural and facade conditions exist.
The correction of those conditions identified under Fair or Poor may require
complete replacement and may constitute a hardship or lack of feasibility on the
part of the property owner, thus constituting an economic or social liability.
The survey of the Stout Place/Iowa Inn indicated a condition of Fair.
4.2 Economic Potential
The Stout Place/Iowa Inn is closely fled to surrounding developments because it lies
strategically adjacent to the central business district for Dubuque. The proximity of the
building to the
commercial district presents significant opportunities for the mutual preservation and
enhancement of their historic and economic aspects.
Given these conditions, the Area meets the statutory requirements for a dilapidated and
deteriorated area as defined in Iowa Code Section 404.1 (3).
5.0 Revitalization Program
5.1 Def'mition
The definition of residential property for the purposes of this Plan shall include all
qualified real estate assessed as residential or assessed as commercial property if the
commercial property consists of three or more separate living quarters with at least
seventy-five percent of the space used for residential purposes.
5.2 Tax Exemption
a. All qualifying real estate, assessed either as residential or commercial, in the Area
shall be eligible for tax abatement.
The abatement incentive is intended to bring back to useful purpose vacant or
underutilized buildings which exist in the Area. Tax abatement shall be available
only for the rehabilitation of existing structures or the addition to existing
structures in the revitalization area, not for the new construction of separate
buildings.
A ten-year 100% exemption on the actual value added by the improvements as
provided in Iowa Code Section 404.3(4) is established as part of this Plan.
do
The actual value of a building to which improvements are made must increase the
assessed value of the building by at least 10% for residential and commercial
properties or by at least 15% for multi-family properties before an abatement may
be applied. Each year that an application is made for tax abatement, the assessed
value must have increased in that year by at least 10% for residential and
commercial properties or by 15% for multi-family properties.
5.3 Duration of the Plan
The Area shall remain as a revitalization area until the Stout Place is fully rehabilitated or
for a period of three (3) years, commencing upon the adoption of an Ordinance approving
this amended Plan by the City Council, whichever first occurs.
5.4 Availability of Funding
Programs which may provide a source of funding for residential and commercial
improvements to the Area include: Community Development Block Grant loan funds, the
Downtown Rehabilitation loan program (TIF financed), HOME funds, Historic Tax
Credit and Low Income Housing Tax Credits, and a Department of Housing and Urban
Development Special Purpose Grant.
5.5 Late Applications
The filing of late applications for tax exemptions shall not be permitted under this plan.
6.0 Conclusion
The Stout Place/Iowa Inn Urban Revitalization Plan will support and enhance efforts to
obtain appropriate building improvements and commercial development opportunities in
the Area. After the ten-year abatement for residential development lapses on such
projects, the full assessed value of the rehabilitated property shall be included on the tax
rolls to the benefit of the entire community.
STOUT PLACE URBAN REVITALIZATION AREA
Exibit 1 - Location
Urban Revitalization Area
EXHIBIT 2
Building and Land Values for the Iowa Inn
Parcel #i Land Value $11,220.00
Parcel #2 Land Value $50,550.00
Building Value $124,980.00 $134,830.00
Total Building & Land Value $1 §6,75,?,.C,0 $196,600.00
Owners of Record
Metro Plains Development, LLC
Spruce Tree Center
1600 University Avenue, Suite 212
St. Paul, MN 55104-3825
F:\US ERS\jocormor~wlXlOcs\Urban Revitalization\Urban Revite-lowa lma\UR Plan-stout.wpd
CITY OF DUBUQUE, IOWA
MEMORANDUM
January 30, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amendment to Stout Place Urban Revitalization District Iowa Inn Project
Acting Community and Economic Development Director Pam Myhre is recommending that a
public hearing be set for March 5, 2001, on amending the City's Stout Place Urban
Revitalization District.
I concur with the recommendation and respectfully request Mayor and City Council apprOval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Pamela Myhre, Acting Community and Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
January 30,2001
To:
From:
Subject:
Michael C. Van Milligen, City Manager ~,
Pamela Myhre, Ac~mi~velopment
Director~-
Amendment to Stout Place Urban Revitalization District
Iowa Inn Project
Introduction
This memorandum submits for City Council review and approval a resolution setting a public hearing to
amend the City's Stout Place Urban Revitalization District. The amended plan will extend the duration of
the plan and update information in the plan on property ownership and proposed rehabilitation of the
property.
Background
The State of Iowa Urban Revitalization Act, Code of Iowa, Chapter 404, authorizes cities to designate an
area of the City as a revitalization area. Improvements to qualified real estate within these designated
areas may then become eligible for an exemption from property taxes for a specified number of years.
On November 17, 1997, the City Council adopted a Resolution of Necessity finding that the former Iowa
Inn Property is an area meeting the definition of blight and that redevelopment of said area is necessary in
the interest of the residents of the City of Dubuque, Iowa. At the direction of City Council, staffprepared
the Stout Place Urban Revitalization Area Plan. An ordinance establishing the Stout Place Urban
Revitalization Area was adopted March 16, 1998. After the former owner, Iowa Housing Corporation,
ceased operations, MetroPlains Development replaced the Iowa Housing Corporation as owner and
developer of the Iowa Inn Project.
Discussion
The plan's duration was for three years from the date of adoption of the ordinance, or until the property was
fully rehabilitated, whichever came first. Since the plan's duration expires on Mamh 16, 2001, it is
necessary to amend the plan. The City Council has previously approved MetroPlains development proposal
which included a local commitment of tax exemption.
The amended plan will be reviewed by the Long Range Plarming Commission at their meeting on February
21. Iowa Code Section 404 specifies that the City may subsequently amend the Urban Revitalization plan
after a hearing.
Recommendation
The recommended action is for the City Council to adopt the attached resolution regarding public
notification and set a public hearing for Monday, March 5, 2001, to amend the Stout Place Urban
Revitalization Plan.
OFFICIAL PUBLiOATION
ORDINANCEggN0 1 01
ORY OFNDUDUQ( QRD1-
NANCEO #1 E.,
PLAOE/IOWA IN
REVI ALIZATIOnn
TO, END THE,
OF T0 URBAN
ZATION PLAN
Whereas, the City 'of Du-
buque Ordinance $12-98.
eStablIshed the Stout Place
Urban. Revitalization Area: and
Whereas, the Stout Place.
Urban - Revitalization Area.
Plan's duration will expire on
March 16, 2001; and
Whereas, due to a'Lhange'XL,
property ownership and re-
sultant delay In rehabilitation
of the Stout' Place (lowe hill)
development, an a ehdment
to the Stout FLOG Urban-.
Revitaliization Plan is neces-
sary to extend; the duratibn of
the plan; and
Wherea , a Public hearing
has n held,on .thiat
amen Ment to the Stout Plage.
Urlfln Revitalization Plan, an,
.a&I other requirements of the
Nowa Code Chapter 404' have'
been met.
NOW, THEREFOR RE T
ORDAINED BY Tt€ cm(
CDUUBUQUEUNCIL ,IOWA:F THE CITY OF
Section.1,The Amended.
Stout. Place/lowa_ Inn Urban
Revitalization Plan hereto:
attached Is hereby adopted •',
and the properties within saidC
describedareashall be sub-
ject' to the provislone of'taig
Plan.
Passed, approved, and,.
adopted this 5th day Of:
March, 2001. cy o
Terrance M, Duggan, Mayor=
ATTEST:
Jeanne F, ' Schneider, City'.
CIbbls
Published Officially in the
Telegraph Herald Newspaper
the 0th day ofMarah, 2001
Jeahne R. **molder
Ctty, Clerk
STATE OF IOWA
DUBUQUE COUNTY
{ SS:
R
f
CERTIFICATION OF PUBLICATION
TAMMY M. FELDMANN a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a
newspaper of general circulation published in the City of Dubuque, County of
Dubuque and State of Iowa; hereby certify that t e att shed notice was published
in said newspaper on the following dates a rr 9
, 20 CV , and for which the charge is $ 1/, 95
-1;t4,vri .%/1
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this /3 day of )ri...e—.O 20 0/
Notary jliblic in and for Dubuque Count Iowa
AFr K. WESTERMEYER
V COMMISSION EXPIRES
FEBRUARY 1, 2002