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New Market Tax Credits _Gronen_ButlerCity Manager's Office 50 West 13th Street Dubuque, Iowa 52001-4564 (563) 589-4110 phone (563) 589-4149 fax ctymgrQcityofdubuque.org December 20, 2007 John Gronen and Paul Butler Gronen Restoration 1086 Main Street Dubuque, IA 52001 Dear Mr. Gronen and Mr. Butler, THE CITY OF ~~1 DL c~~ `~- ~/ Redeveloping historic properties in downtown areas can be an expensive venture. Building new at the outskirts of town can be a less expensive option, but the City of Dubuque believes there are many benefits to revitalizing the downtown area. Two projects in downtown Dubuque; the Julien Hotel, and the 900 block of Main Street, are two projects which will spur economic development in our lowest-income census tract, encourage additional revitalization, utilize existing resources to prohibit the destruction of the environment, and create a historical destination where citizens and visitors can live, work, and play. The Julien Hotel is one of Dubuque's signature buildings which has a very strong visual presence in the community. The owners are focused to redevelop it into the premier lodging destination in the region, like it once was when it was constructed. The project will create over 50 new jobs for the City's most distressed census tract. A significant gap exists for funding this project and New Market Tax Credits will make this significant project move forward. The 900 block of Main Street rests between two core areas of the central business district. The current property owner sees the potential to redevelop the properties and to create a connection for citizens, workers, and visitors between the two areas. This project will help its low-income neighborhood realize the benefits of redeveloping their properties. This will help spur additional revitalization in the area. The City of Dubuque is committed to revitalizing the downtown area and these two projects are catalyst projects to continue the long-term process of transforming the area. The City has been a partner in discovering financing mechanisms for these projects and is excited for the possibility of making downtown Dubuque a greater place to live, work, and play. Sincerely, Michael C. Van Milligen City Manager Service People Integrity Responsibility Innovation Teamwork