Wilmac Property Downtown Rehab Loan CommittmentTHE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Downtown Rehabilitation Loan, Design Grant, and Facade Grant for the
1000 Jackson Building to Wilmac Property Company
DATE: December 28, 2007
Futurus is currently located at the 1000 Jackson building in the Warehouse District.
Futurus is planning a name change to Sustainable Land Development International, a
doubling of their leased space and addition of 38 employees.
Economic Development Director David Heiar is recommending providing the owner of
the building, Wilmac Properties, a $300,000 Downtown Rehabilitation Loan, a $10,000
Design Grant and a $10,000 Facade Grant to support the renovation of 1000 Jackson
building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen ~ ~ ~~ ~~ )
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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December 28, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Downtown Rehabilitation Loan, Design Grant, an Facade Grant for
the 1000 Jackson Building to Wilmac Property Company
INTRODUCTION
This memorandum presents for City Council consideration a Resolution approving a
letter of commitment for a Downtown Rehabilitation Loan of $300,000, a $10,000
Design Grant, and a Facade Grant of $10,000 for Wilmac Property Company to support
their rehabilitation of the 1000 Jackson Building.
BACKGROUND
The 1000 Jackson Building is a key structure in the Warehouse District and one of the
giant industrial buildings in the district. The Assessor's office dates it to 1924. It is five
stories high and uses solid wood joists and 12x12 wood columns to support each floor.
The building currently has Futurus Communications/Sustainable Land Development
International (SLDI) as a tenant in the building and is looking to expand their operations
from 15 employees to 55 employees. They need additional space to have room for the
new employees.
The Downtown Rehabilitation Loan/Grant Program encourages private investment and
rehabilitation efforts in the City's Greater Downtown Urban Renewal District's Old Main,
Town Clock Plaza, Upper Main, South Main, and Warehouse sub areas. The program,
capitalized with funds available through the City's tax increment financing district,
provides for a maximum of $300,000 in attractive low-interest loan monies. The program
is unique in that grants of up to $10,000 are available to offset costs for Facade
improvements and design costs. The program also includes a forgivable loan element
whereby qualifying applicants may have up to the full amount of the loan forgiven as an
incentive for the creation of new employment and housing opportunities in the district.
DISCUSSION
The renovations that Wilmac Property Company is planning will include the buildout of
additional space for Futurus/SLDI. The new area will have a new HVAC system,
restored windows, bathroom, and finishings to match the existing space for the
company.
At this time, insufficient loan funds are available in the Downtown Rehabilitation Loan
Program to fund the loan. The owners have agreed to wait until the funds are available
in FY2016. As of July 1, 2015, the loan funds should be available to the project and the
company would like to proceed with the loan. Recapitalizations for this program have
been included into the City's Capital Improvements Program. Should the
recapitalization schedule be altered, the timing for the availability of loan funds may
change.
Additional information on the terms and conditions of the proposed Downtown
Rehabilitation Loan/Grant is attached in the commitment letter. If the loan is approved
by the City Council, this commitment letter would be executed by the Mayor and by the
owners.
RECOMMENDATION
Staff has reviewed the application and found it to be in keeping with the requirements of
the Downtown Rehabilitation Loan/Grant Program. The project is scheduled to begin in
early 2008.
recommend that the City Council adopt the attached Resolution approving a letter of
commitment for Wilmac Property Company at 1000 Jackson Street for the $300,000
Downtown Rehabilitation loan, $10,000 design grant, and $10,000 facade grant.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
F:\USERS\Adejong\Downtown Rehab Loan\1000 Jackson Wilmac Co\20071228 DRLP Memo.doc
RESOLUTION NO. 8-08
A RESOLUTION AUTHORIZING A LETTER OF COMMITMENT AND
ADDITIONAL ACTIONS CONCERNING A DOWNTOWN REHABILITATION
LOAN, DESIGN GRANT AND FACADE GRANT TO 1000 JACKSON STREET.
Whereas, the City of Dubuque, Iowa, has created a Downtown Rehabilitation
Loan/Grant Program for the purpose of stimulating reinvestment in the Greater
Downtown Urban Renewal District; and
Whereas, the City of Dubuque, Iowa is encouraging the use of this loan/grant
program to finance code compliance activities and to spur job creation activities; and
Whereas, the loan application from Wilmac Property Company meets the
requirements of this program; and
Whereas, a Commitment Letter, hereto attached and by this reference made a
part hereof, sets forth the terms and conditions of Wilmac Property Company
participation in the Downtown Rehabilitation Loan Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the application of Wilmac Property Company for participation
in the Downtown Rehabilitation Loan and Grant Program is hereby accepted and
approved.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the
City Council of the City of Dubuque, Iowa, the attached Commitment Letter and to
forward said letter to Wilmac Property Company for review and approval.
Scct~un 3. That the Cify Ma. gayer be and ha is hereby directeu to prepare,
upon execution and receipt of the attached Commitment Letter by the applicant and
when loan funds become available, the necessary loan documents in accordance with
the terms and conditions set forth in said Commitment Letter.
Section 4. That the City Manager is hereby authorized to execute, on behalf of
the City Council of the City of Dubuque, Iowa, all necessary loan documents and is
4
further authorized to disburse loan funds from the Downtown Rehabilitation Loan/Grant
Program, in accordance with the terms and conditions of the executed agreement.
Passed, approved and adopted this 7th day of January, 2008.
Roy D. Buol, Mayor
Attest
Jeanne F. Schneider, City Clerk
F:\USERS\Adejong\Downtown Rehab Loan\1000 Jackson Wilmac Co\20080107 DRLP Resolution Wilmac.doc
.January 2, 2008
City of Dubuque
Economic Development Department
13t" and Central
Dubuque, Iowa 52001
Dave and Aaron,
This letter is to apply for the City of Dubuque's low interest loan application, as well as
a design grant for architectural services related to this project. Applicant is Wilmac
Property Company, 801 ,Jackson Street, Dubuque, Iowa 52001. Phone 556-8881, fax
583-2804. FEIN:42-1201501
The address for which the money is needed is 1000 Jackson Street, Dubuque Iowa
52001 .
The purpose of this low interest loan application is to fund capital improvements to the
above address to create additional office space for Sustainable Land Development
International. This is the second phase of office development Wilmac is constructing for
this tenant, the first being done under the name of Futurus Communications. It moves
us further down the path of revitalizing the Dubuque Warehouse District by creating
appealing space in which to live, work and play. It promises to bring many additional
jobs to the district, and spur further development of our building and neighboring
buildings.
Currently, Futurus has 12 full time and 4 part time employees. This new phase
promises to create approximately fifteen new jobs in the first year, and approximately
30 more in the future.
Proof of ownership is reflected in the enclosed document from the Dubuque Assessor's
office.
Amount of loan requested is $300,000.00 and a $10,000 design grant. Security on the
loan can be provided by a second mortgage on the property, and personal guarantee of
Tim McNamara, president of Wilmac Property Company.
Here are preliminary construction budget numbers, prepared by Wilmac, who is acting
in the capacity of general contractor.
raised floors on pads 25896
*floor covering 19920
clean walls, columns, beams, ceiling29880
*restore windows 1 5600
restore door to nowhere 9600
*ducts, wire in floors 29880
hvac 39840
'bathroom 39840
demolition 2400
lighting 23904
perimeter walls 19920
`inner walls 39840
*paint, trim 1 1952
doors 7968
cabinets, counters 7968
electrical 59760
waste removal 3984
388152
A preliminary construction schedule is enclosed on separate sheet.
A resolution by Wilmac's board of directors can be made available subsequent to our
earliest opportunity to have a board meeting.
Thank you.
Tim McNamara
Wilmac Property Company
801 ,Jackson St.
Dubuque, IA 52001
563-556-8881
Futurus Phase 2 12-Feb 19-Feb 26-Feb 5-Mar 12-Mar 19-Mar 26-Mar 2-Apr
restore brick: clean columns: Rob x
restore ceilin ,seal x x x x x x x
construct floor rid, insulate x x x x
electricalni hti overhead x x
run hvac and wires in floors x x x
install oxboard floor x x
install maple floor, seal, cover x x
erect perimeter stud walls
install bathroom fixtures, new floor x
install brick wails
install all other walls,
run wire in walls
install hvac a uipment
Removelrestore windows
install reception desk,
install li hts, switches
install doors
9-Apr 16-A r 23-Apr 30-A r 7-May 14-May 21-May 28-May 4-Jun 11-Jun 18-Jun 25-Jun
x x
x x
x
x x x x
x x
x x x
x x x x
x x x
x x x
x x x
2-JuI
.January 2, 2008
City of Dubuque
Economic Development Department
1 3T" and Central
Dubuque, Iowa 52001
Dave and Aaron,
This letter is to apply for the City of Dubuque's fa4ade grant program, on behalf of
Wilmac Property Company, 801 .Jackson Street, Dubuque, Iowa 52001. Phone 556-
8881, fax 583-2804. FEIN: 42-1201 501
The address for which the money is needed is l OOO jackson Street, Dubuque, Iowa
52001.
The purpose of this fa4ade grant is to fund improvements to the above address to bury
utilities coming into the building, refurbish the windows adjoining the SLDI space, and
install new electrical metering equipment on the outside of the building in the north
side of the alley. This will facilitate the concealment of large overhead wires into what
will eventually be the entrance to the basement parking garage and an access route
into the main passenger elevator lobby. Part of this improvement will include updating
the adjacent windows in this area. Anticipated cost of this phase of the project will be
approximately $40,000.00, so any assistance available will help.
It moves us further down the path of revitalizing the Dubuque Warehouse District by
updating the electrical and communications infrastructure, including fiber optic, cable
and phone lines. It will prepare the building for 21ST century communications and
sustainable energy utilization on a scale to match the building's potential, creating
appealing space in which to live, work and play. It will help spur further development
of our building and neighboring buildings.
Proof of ownership is reflected in the enclosed document from the Dubuque Assessor's
office.
Amount of grant requested is $10,000.00, which will be matched by Wilmac several
times over.
Thank you.
Tim McNamara
Wilmac Property Company
801 Jackson St.
Dubuque, IA 52001
563-556-8881
Futurus Phase 2 12-Feb 19-Feb 26-Feb 5-Mar 12-Mar 19-Mar 26-Mar 2-Apr
restore brick: clean columns: Rob x
restore ceilin ,seat x x x x x x x
construct floor rid, insulate x x x x
electrical/li htin overhead x x
run hvac and wires in floors x x x
install oxboard floor x x
install maple floor, seal, cover x x
erect perimeter stud walls
install bathroom fixtures, new floor x
install brick walls
install aft other watts,
run wire in wafts
install hvac a ui ment
Remove/restore windows
install reception desk,
install fi hts, switches
install doors
9-Apr 16-Apr 23-Apr 30-Apr 7-Ma 14-Ma 21-May 28-Ma 4-Jun 11-Jun 18-Jun 25-Jun
x x
x x
x
x x x x
x x
x x x
x x x x
x x x
x x x
x x x
2-Ju1
x x x x
x