Historic Pres Incentives budgetPlanning Services Department
50 West 13th Street
Dubuque, Iowa 520014864
Phone (319) 589-4210
Fax (319) 589-4221
February 21, 2001
The Honorable Mayor and City Council
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
RE: Support for Histodc Preservation Incentives with budget impacts
Dear Mayor and City Council Members:
Last spring, the Historic Preservation Commission formed a Preservation Task Force in
partnership with other preservation organizations to develop historic preservation
incentives for the community. With input from the general public, we have recommended
four incentives to the City Council that we believe will enhance the economic benefits of
historic preservation. Like its investment in the riverfront for economic reasons, we believe
that the City of Dubuque needs to invest in historic preservation for economic reasons.
The City is investing millions of dollars in our riverfront, creating opportunities for economic
growth and revitalization, toudst attractions, recreational facilities and attractive gateways.
The dverfront is a key to Dubuque's economic prosperity and quality of life. The
Mississippi River is Dubuque's No. 1 tourist attraction.
The historic, architectural and cultural resources of Dubuque's historic landmarks, sites,
districts, downtown and neighborhoods also are a key to Dubuque's economic prosperity
and quality of life. These resources, like the Mississippi River, help form Dubuque's unique
identity. They are Dubuque's No. 2 tourist attraction.
Many property owners in histodc districts are Iow or moderate income households for
whom home and property improvements can be expensive. The cost to make these
improvements to historic properties can be more expensive in the short term than using
conventional, historically inappropriate measures. The City needs to make investments
in its historic districts that bridge the gap that owners of these histodc properties face due
to their income, the cost of historic preservation, or both.
We have proposed four histodc preservation incentives to help the City uphold its
commitment to its historic sites and districts. By providing incentives for people to own,
renovate and maintain historic structures, the City can retain and upgrade our existing
housing stock, help revitalize neighborhoods, and improve the quality of life in Dubuque.
Service People Integrity Responsibility Innovation Teamwork
Page 2 of 2
We have enclosed a chart that provides an overview of the four incentives, the level of
funding that we requested, the level of funding that City Manager Michael Van Milligen has
recommended, and what action we would like the City Council to take.
We are pleased that Mr. Van Milligen has recommended funding for three of the four
incentives, and we ask that you concur with his recommendations.
The unfunded incentive, however, a full-time Historic Preservation Planner, we believe
is cdtical to the successful implementation of the other three incentives, as well as the
"package" of preservation initiatives and ordinance amendments that we have
recommended. We have enclosed a summary of our four incentives that describes what
this full-time planner would do, and why this position is so important to histodc preservation
efforts in Dubuque.
Currently, the City has a budget of $30,000 allocated from CDBG funds for historic
preservation. The City budgets approximately $15,000 annually for wages, benefits,
training, supplies and equipment for this staff support. The City budgets for 1/4 of the
time of an Assistant Planner in the Planning Services Department to provide support for
the Historic Preservation Commission. In addition, the City has allocated $15,000 in
CDBG funds annually for consultant services for the phased historic/architectural
survey of the community.
The budget request for the full-time Historic Preservation Planner is for $60,000, which
includes approximately $50,000 for salary and benefits for an Associate Planner; and
about $10,000 for supplies, training, equipment and new office furniture. The higher-
paying Associate Planner position was requested so that, if approved, the Section 106
reviews for federally-funded or federally-permitted projects could be shifted from the
Community and Economic Development Department to the Planning Services Department.
We would greatly appreciate your support, which is so very important to the enhancement
of historic preservation and economic development in our community.
Sincerely,
Terry Mozena, Chairperson
Historic Preservation Commission
Enclosures
Vi 'enbnqno
(~ .~/~ [.) ~en/wp/Council/ccbudget .It ,.doc
SUMMARY DISCUSSION OF BUDGET RECOMMENDATIONS
FOR HISTORIC PRESERVATION INCENTIVES
Review by the City Council on February 26, 2001 I
The Historic Preservation Commission and Preservation Task Force recommend that the City
Council establish historic preservation incentives for rehabilitation of historic properties to bridge
the gap that owners of historic properties face due to their income, the cost of historic
preservation, or both.
Among the City's historic preservation incentives, some programs are more successful and
utilized more that others. We recommend that the City Council alter the existing incentives and
adopt new programs to make histodc preservation a stronger economic development tool for
downtown and neighborhood revitalization and investment.
The four historic preservation incentives are shown in bold text, followed by an explanation of
and a rationale for the recommendation.
Recommendation #1: Change the Historic Preservation Homeowner Grant Program for
Iow to moderate income households, by increasing the grant amount from $2,000 to
$5,000, and removing the required match.
The Historic Preservation Homeowner Grant Program now is available to Iow and moderate
income owner-occupants of a single family, duplex or three-unit property at least 50 years old
located in any of the five historic districts. Preservation grants for exterior rehabilitation projects
(in the form of a forgivable loan) would continue to be available on a competitive basis to
income-qualifying property owners who could earn up to 80% of median family income (MFI).
For example, 80% MFI for a family of four is $ 36,250.
Proposed program changes include replacing the current terms of a $2,000 grant with a $2,000
private match, to a $5,000 grant with no private match. At this income level, a $2,000 private
match is often difficult to provide. Eliminating the private match would increase the availability
of this program to a greater number of income-qualifying households. Grants of up to $5,000
could be fully forgiven after 5 years, with a limit of one grant per building.
Eligible improvements presently are exterior doors, walls, windows, roofs, stairs, porches,
railings, retaining walls, and painting. These would be changed to repair and restoration of
porches, wood windows, wood doors, wood siding, character -defining features, and chimneys,
as well as historic colors paint projects. All work would have to continue to meet the Secretary
of the Interior's Standards for Rehabilitation. In addition to HPC approval, a grant review
committee would rank the requests.
Recommended City Fundin.q: $30,000 in Community Development Block Grant (CDBG) funds
Funding could continue to be from the CDBG program, which has federally-mandated
Iow/moderate income requirements. The annual budget of $20,000 could be increased to
$30,000 by using the existing carryover. The Community Development Advisory Commission
supports the allocation of $30,000 in CDBG funds for the revised homeowner grant program.
Page 2 of 4
Recommendation #2: Create a $400,000 Historic Preservation Revolving Loan Fund to
provide low interest loans to property owners at any income level in the four residential
historic districts.
Establishment of a iow interest Historic Preservation Revolving Loan Fund for the four primarily
residential historic districts: Cathedral, Jackson Park, Langworthy and West 11th Street, would
complement the similar loan fund available for the Old Main Historic District, which is primarily
commemial. The loans would be available on a competitive basis to all property owners at any
income level for exterior rehabilitation projects.
All work would have to meet the Secretary of the Interior's Standards for Rehabilitation. A loan
review committee would rank the applications, in addition to review and approval by the HPC.
Priority would be given to projects that result in saving, restoring or reconstructing original
building elements, using original materials that reflect the architectural character or significance
of the property.
Loans would be for up to $25,000 at 3% for 10 years, with a limit of one loan per building.
Monthly principal and interest payments would begin after project completion. At least a second
mortgage position and a promissory note would be required.
Recommended City Fundin.q:
$200,000 in Urban Development Action Grant (UDAG) funds
Since the loans would be available to property owners at any income level, then CDBG funds
cannot be used. CDBG funds are restricted to persons or households with incomes at or below
80% MFI. UDAG funds are not income restricted.
Potential Additional Fundin,q:
The Inner-City Ventures Fund (ICVF) and the National Preservation Loan Fund (NPLF) are
available from the National Trust for Historic Preservation. The ICVF finances the rehabilitation
of historic buildings that serve the economic and community development needs of Iow-,
moderate-, or mixed-income neighborhoods. The NPLF provides loans to tax-axempt nonprofit
organizations and local governments to establish local revolving loan funds for the stabilization
and/or rehabilitation of historic properties in conformance with the Secretary of the Interior's
Standards. Loan terms and conditions for revolving funds are terms up to 7 years at an interest
rate of 1% below prime for up to $200,000. The NPLF also can provide loans to tax-exempt
nonprofit organizations and local governments to acquire and/or rehabilitate historic buildings,
sites, structures and districts. The loan terms and conditions vary with the type of loan.
The Banc of America Historic Tax Credit Fund, managed by the National Trust for Historic
Preservation, is a $25,000,000 equity pool that will invest in historic property rehabilitations that
have economic development benefits for urban communities and central business districts.
Most historic preservation projects are small. This fund is geared to invest in small-equity
development projects, which is what.
Local financial institutions also would be a source for this revolving loan fund, similar to their
involvement in the revolving loan fund for the Old Main Historic District.
Page 3 of 4
Recommendation #3: Create a $100,000 Historic District Public Improvement Program to
provide incentives for public place and streetscape improvements in each historic
district on an annual rotating basis, with improvements based on a comprehensive urban
design plan for each of the districts.
The City presently provides a number of support grants to neighborhoods in CDBG target areas,
which are areas where a majodty of the households are at or below 80% MFI. There is some
overlap between the CDBG areas and the five historic districts. A new Historic District Public
Improvement Program would provide the means by which the City could fund public
improvements and provide incentives to do streetscape elements such as landscaping, historic
lighting, planters and signs.
The Commission and Task Force members requested allocation of $100,000 to retain a
qualified consultant to develop a comprehensive urban design plan for public places and
streetscapes for the five historic districts. This plan would serve as the basis for the expenditure
of the program funds in the historic districts, in the subsequent years, The HPC and Task Force
also requested that the City allocate $100,000 annually, with funding to be rotated among the
five historic districts each year. The HPC would review and approve all projects.
Recommended City FundinR: $100,000 annually for 5 years from the General Fund
Potential Additional Funding:
Property owners could be assessed for a percentage of the costs using the formulas applied to
City street or sidewalk assessment projects. Property owners and neighborhood associations
could conduct fundraising events to help pay for their share. Additional state or federal grants
also could be explored as possible funding sources.
Property owners and neighborhood associations could conduct fundraising events to help pay
for their share. Additional state or federal grants also could be explored as possible funding
sources. CDBG funds could be used to fund improvements or assist with assessment costs to
Iow and moderate income households in the four historic districts that are within the CDBG
target areas.
Recommendation ~4: Fund a full- time Historic Preservation Planner in the Planning
Services Department.
Currently, the City has a budget of $30,000 allocated from CDBG funds for historic preservation.
The City budgets approximately $15,000 annually for wages, benefits, training, supplies and
equipment for this staff support. The City budgets for 1/4 of the time of an Assistant Planner in
the Planning Services Department to provide support for the Historic Preservation Commission.
Additional staff support is provided by the Department Manager, Planning Technician and
Secretary. Planning Intems assist with specific preservation studies, in addition, the City has
allocated $15,000 in CDBG funds annually for consultant services for the phased
historic/architectural survey of the community.
The FYO2 budget request for the full-time Histodc Preservation Planner is for $60,000, which
includes approximately $50,000 for salary and benefits for an Associate Planner; and about
$10,000 for supplies, training, equipment and new office furniture. The higher-paying Associate
Planner position was requested so that, if approved, the Section 106 reviews could be shifted
from the Community and Economic Development (CED) Department to the Planning Services
Department.
Page 4 of 4
The CED Department continues to provide staff support for historic preservation with the
Associate Planner who conducts the Section 106 reviews of federally-funded or federally-
permitted projects. An Assistant Planner cannot be assigned to the Section 106 reviews, due to
limitations of job responsibilities.
The Commission and Task Force members believe that implementation of our
recommendations will necessitate a full-time planner to administer the programs, provide
assistance and coordinate the necessary services. The Building Services Department does not
have the staff capacity to take on the additional work to conduct design reviews, inspect sites
and ensure compliance with historic preservation regulations. The Housing Services
Department does not have the capacity to administer preservation loans, preservation grants or
a public streetscape program. The Planning Services Department does not have the capacity to
expand historic preservation services beyond the current staff support to the Commission.
We believe that a full-time Historic Preservation Planner will support the City's economic
development and neighborhood revitalization efforts by implementing our package of initiatives,
incentives and ordinance amendments. In addition to the currant duties, a full-time planner
would organize events and functions, research funding opportunities, administer preservation
loans and preservation/neighborhood support grants, conduct design reviews and educational
seminars, inspect sites to provide information about and ensure compliance with historic
preservation regulations, and provide expertise for City departments and property owners.
This planner would encourage economic growth by helping to promote the City's historic areas,
and facilitating investment in these areas. This planner also would foster partnerships by
helping people maximize the use of preservation resources, finances, tax credits and other
incentives, as well as providing technical assistance to access these resources. Additionally,
this planner would apply for and administer grants that would leverage federal and state dollars
into the community on behalf of individual property owners, community organizations, and the
City itself. This person could conduct the historic/architectural surveys that the City now hires a
consultant to do.
These types of services could be augmented by an Historic Preservation Forum. This forum
could fund and/or provide preservation services through partnerships beyond the City. The
Historic Preservation Planner would develop, facilitate and maintain the Forum's partnerships
and services.
Recommended City Funding: --0--
Potential Additional Funding:
The Iowa Community Cultural Grant Program is available from the Iowa Department of Cultural
Affairs (DCA) to cities for historic preservation projects that will enhance Iowa's cultural climate
and that provide employment for Iowans while serving the general public. The grant will fund up
to $25,000 for part-time or full-time employment, such as hidng new staff positions within the
City organization, or expanding existing jobs within the applicant organization. Several recent
grant recipients are using the grant for full-time or part-time positions. The local match is at
least 50% of the project costs. Up to 25% of the local match must be in cash.
A new full-time historic preservation planner position would be competitive, especially in the first
year. The DCA awards initial grants, and then also continuation grants. The program is very
competitive, so the City would be most competitive for two or three years. The grant does not
fund staff positions for longer than this.
Icarstenh,~p/Council/ccbudgetrec. doc