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Paragon Square - Petition for Urban Revitalization District Designation_Holy Ghost SchoolRESOLUTION NO. 402-15 RESOLUTION FINDING THAT THE DESIGNATION OF THE PARAGON SQUARE URBAN REVITALIZATION PLAN IS NECESSARY FOR REHABILITATION AND CONSERVATION OF THE HERINAFTER DESCRIBED PROPERTY AND URBAN REVITALIZATION AREA IS NECESSARY IN THE INTERESTS OF THE PUBLIC HEALTH, SAFETY, AND WELFARE OF THE RESIDENTS OF THE CITY Whereas, the City Council of the City of Dubuque finds that the properties at 2887 - 2901 Central Avenue (Property) are currently vacant and underutilized, and Frantz Community Investors has proposed to rehabilitate the Property and create 29 senior affordable apartments and restore both buildings on the proposed parcels to their original historic significance; and Whereas, the City supports Economic Development, Historic Preservation, and promotes Affordable Housing to benefit the citizens of Dubuque; and Whereas, the Property is located in an area eligible for the Urban Revitalization Tax Exemption program; and Whereas, in the area proposed for designation under the Urban Revitalization Act there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use as defined by Section 404.1(3) of the Iowa Code; and Whereas, through the Urban Revitalization Program, the Property is eligible to receive a one hundred percent exemption from taxation on the actual value added by the improvements for a period of ten years so long as it is assessed as residential property 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the rehabilitation of the hereinafter described Property legally described as 2887 Central Avenue — Lot 2 — I Paragon Square, Dubuque Iowa 2901 Central Avenue — Lot 1 — I Paragon Square, Dubuque Iowa, according to the recorded plat thereof is deemed necessary in the interest the residents of the City. Section 2. That the City Council supports Frantz Community Investors' Petition that 2887 - 2901 Central Avenue be designated a Urban Revitalization Area and supports the developer's efforts to receive a tax credit award from the Iowa Finance Authority for this Development. Section 3. That the City Council approve the resolution supporting he project and authorize staff to work with the City Assessor to complete the form 5S for submission by Developer prior to December 7, 2015 deadline for consideration. Section 4. That the proposed Development is consistent with the City of Dubuque's affordable housing strategies and its goal to implement its comprehensive plan. Passed, approved and adopted this 16th day of November, 2015., Attest: Ke in F. Firnstahl, City Clerk /It Roy D. Bity, Mayor Copyright 2014 City of Dubuque Action Items # 8. ITEM TITLE: Paragon Square - Urban Revitalization District Designation Petition SUMMARY: City Manager recommending approval of a petition for Urban Revitalization Area Designation from Frantz Community Investors for the Paragon Square Urban Revitalization District. RESOLUTION Finding that the designation of the Paragon Square Urban Revitalization Plan is necessary for rehabilitation and conservation of the hereinafter described property and Urban Revitalization Area is necessary in the interests of the public health, safety, and welfare of the residents of the City SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Paragon Square Urban Revitalization District Designation-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Petition for Designation Supporting Documentation ❑ Exhibit 5S Supporting Documentation ❑ Resolution Resolutions THE CITY OF Dubuque U E I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Petition for Designation of Paragon Square Urban Revitalization Area District Frantz Community Investors DATE: November 12, 2015 Housing & Community Development Department Director Alvin Nash recommends approval of a petition for Urban Revitalization Area Designation from Frantz Community Investors. Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes cities to designate areas as urban revitalization areas. Improvements to qualified real estate within these designated areas may receive a total or partial exemption from property taxes for a specified number of years. The exemptions are intended to stimulate private investment by reducing tax increases that usually accompany property improvements. This additional private investment provides a long-term increase or stabilization in the area's tax base, enhances the visibility of revitalization areas and/or supports important city objectives such as historic preservation, economic development and affordable housing development. The development plan proposes to create 29 affordable senior apartments that include 3 efficiency units, 8 one-bedroom units and 18 two-bedroom units. The project will restore both buildings on the proposed parcels to their original historic significance. The planned development site is located at 2887-2901 Central Avenue. The project will utilize multiple sources of funding including Low Income Housing Tax Credits, Federal Historic Tax Credits, State Historic Tax Credits, Workforce Housing Tax Credits, Developer Equity, Permanent First Mortgage, and Abatement Mortgage. The urban revitalization tax exemption will show local support for the project, which will strengthen Frantz Community Investors Tax Credit application to the Iowa Finance Authority. The area is established under 404.1(3) and is defined as an area in which there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use. The basis for an exemption under 404.3(4) and permit a one hundred percent exemption from taxation on the actual value added by improvements for qualified real estate assessed as residential property or assessed as commercial property, for a period of ten years. Frantz Community Investors has agreed to this exemption schedule. This assistance is very important to the success of the project. The application for state tax credits is competitive. A developer receives points for city financial assistance, with maximum points provided for assistance equaling 7% of project costs. I concur with the recommendation and respectfully request Mayor and City Council approval. �114" Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing & Community Development Department Director 2 THE CITY OF Dubuque AII-Ame1 rica City DUBgkE r Masterpiece on the Mississippi 2007.2012.2013 TO: Michael Van Milligen, City Manager FROM: Alvin Nash, Housing & Community Development Director DATE: November 12, 2015 RE: Petition for Designation of Paragon Square Urban Revitalization Area District Frantz Community Investors Introduction This memorandum presents for City Council a petition for Urban Revitalization Area Designation from Frantz Community Investors. The memorandum recommends the City Council review and approve the attached resolution to establish Paragon Square as a property that meets the requirements for designation as required by Chapter 404 of the Iowa Code. Background Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes cities to designate areas as urban revitalization areas. Improvements to qualified real estate within these designated areas may receive a total or partial exemption from property taxes for a specified number of years. The exemptions are intended to stimulate private investment by reducing tax increases that usually accompany property improvements. This additional private investment provides a long-term increase or stabilization in the area's tax base, enhances the visibility of revitalization areas and/or supports important city objectives such as historic preservation, economic development and affordable housing development. In order to implement the provisions of Chapter 404, the City determine the area is eligible for exemption, prepare a revitalization plan for each designated area, and hold at least one public hearing after proper notice. The law mandates specific criteria and procedures must be followed. Discussion The development plan proposes to create 29 affordable senior apartments that include 3 efficiency units, 8 one-bedroom units and 18 two-bedroom units. The project will restore both buildings on the proposed parcels to their original historic significance. The planned development site is located at 2887-2901 Central Avenue. The project will utilize multiple sources of funding including Low Income Housing Tax Credits, Federal Historic Tax Credits, State Historic Tax Credits, Workforce Housing Tax Credits, Developer Equity, Permanent First Mortgage, and Abatement Mortgage. The urban revitalization tax exemption will show local support for the project, which will strengthen Frantz Community Investors Tax Credit application to the Iowa Finance Authority. The area is established under 404.1 (3) and is defined as an area in which there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use. The basis for an exemption under 404.3(4) and permit a one hundred percent exemption from taxation on the actual value added by improvements for qualified real estate assessed as residential property or assessed as commercial property, for a period of ten years. Frantz Community Investors has agreed to this exemption schedule. This assistance is very important to the success of the project. The application for state tax credits is competitive. A developer receives points for city financial assistance, with maximum points provided for assistance equaling 7% of project costs. Budgetary Impact The property value, based upon 2015 Beacon data, is $27,560 for land and $14,440 for dwelling for a total taxable value of$42,000 for the property at 2887 Central Avenue. The property value is $55,100 for land and $47,000 for dwelling for a total taxable value of$102,110 for 2901 Central Avenue. Dubuque City Assessor Rick Engelken the ten year abatement will provide $196,450 to support the project. Recommendation I recommend that the City Council approve the attached resolution confirming the need for the Paragon Square Urban Revitalization Plan and directing staff to work with the City Assessor to complete Exhibit 5S. Action Requested The Action Step is for the City Council to adopt the attached resolution and authorize staff to work the City Assessor to complete Exhibit 5S prior to show local support for the development. Prepared by: Erica Haugen, Community Development Specialist F:\USERS\CDBG\Urban Revite\Applewood 4\Memo to Council.doc 2 URBAN REVITALIZATION PROGRAM City of Dubuque, Iowa PETITION FOR DESIGNATION Minimum Requirements Individuals wishing the designation of a property or properties as an URBAN REVITALIZATION AREA must petition the City. The following information must be included with all petitions. Additional documentation and explanatory narratives may be requested. 1)Eligibility of the Proposed Designation: Per Section 3 of the criteria of Attachment A of the Urban Revitalization Program we believe that the Holy Ghost site qualifies for the program due to its historical significance. • An area in which there is a predominance of buildings or improvements which by reason of age,history, architecture or significance should be preserved or restored to productive use. 2)Legal Description: 2887 Central Avenue—Lot 2—I Paragon Square 2901 Central Avenue—Lot 1 —I Paragon Square See attached maps. 3)Valuation of Propert(ies): 2887 Central Avenue—Land— $27,560,Building— $14,440,Total— $42,000 2901 Central Avenue—Land— $55,100,Building— $47,000,Total— $102,110 4)Property Ownership: Holy Ghost Dubuque Building, L.L.C. 2801 Beverly Rd. SW suite 300 Cedar Rapid,IA 52404 (a wholly owned subsidiary of Frantz Community Investors) 5)Zoning Classification: M-Multi Residential. No zoning changes will be requested. Proposed use is allowable with current zoning. 6) Applicability of Proposed Designation: The petition is applicable to the entire two parcels for use as Senior Housing. The petition is limited to rehabilitation of existing structures. 7)Relocation The buildings are vacant. No relocation is required. 8)Proposed Improvements: Request must include a narrative describing the proposed project and the improvements to be made to the property(ies). The project proposes to create 29 Senior Housing apartments that include 3 efficiency units, 8 one- bedroom units and 18 two-bedroom units. The project will restore both of the buildings on the proposed parcels to their original historic significance. 9) Anticipated Impact of Improvements: All Section 42 Senior Housing projects are valued with a mandated 9.47% capitalization rate. Based on year 1 net operating income, the expected valued of the project will be approximately $802,000. Expected valuation without abatement would be approximately $604,000. Total project cost is anticipated to be $6,206,656. 10)Funding Sources: Senior Housing Tax Credits $2,758,429 Federal Historic Tax Credits $1,072,665 State Historic Tax Credits $1,270,262 Workforce Housing Tax Credits $ 310,332 Developer Equity $ 155,264 Permanent First Mortgage $ 494,610 Abatement Mortgage $ 145,003 Total $6,206,566 11)Economic Justification: Without tax abatement and other City of Dubuque financial support the project will fall short of the necessary scoring criteria as established by the Iowa Finance Authority for the Senior Housing Tax Credit Program. With out the Senior Housing award the project is unfeasible as that represents the largest single funding source. 12) Summary Statement: Holy Ghost Convent and School, currently located at 2901 (formerly 2905) Central Avenue & 2887 Central Avenue are currently qualified for the National Register of Historic Places. Both the Part 1 and Part 2 of the National Park Service requirements have been approved and will meet all standards by NPS and Section 404.1 of the Iowa Code referring to deteriorating neighborhoods and designated as such by the City of Dubuque. The original school (built in 1896) exterior masonry consists of a limestone foundation and red brick walls with limestone accents. Both the stone and brick walls are in good condition with only minimal areas of loose or missing mortar which is easily repaired meeting NPS standards. There are areas of concern regarding the roof which is in need of repair. The asphalt roof will be removed and a new roof, with decking repaired and replaced, along with other improvements. The school building exhibits a mix of Revival style architecture popular in the 1890s and early 201h century, united by the red brick construction and stone detailing. Holy Ghost convent(originally built in 1903) exterior masonry consists of a similar brick and limestone accents to the Holy Ghost School, only changed by the time period of construction. The grounds around the convent and the school are generally blacktopped for parking and will meet parking requirements of 1 parking place per senior housing unit by the City of Dubuque. The current properties, with City support, will impact a distressed area of the City of Dubuque near to the downtown as well as neighboring urban neighborhoods. The integrity of the surrounding neighborhood will be positively impacted by this project. We believe this project offers an outstanding Senior Housing solution for the existing aging population in this neighborhood. FCI is proud to be a part of the continuing effort to revitalize the City of Dubuque, the Paragon Square neighborhoods and the community as a whole.. Petitions should be submitted to: Erica Haugen Housing&Community Development Department 350 West 6th Street, Suite 312 Dubuque IA 52001 ehaugen@ cityofdubuque.org For additional information on the City of Dubuque's URBAN REVITALIZATION PROGRAM,please call(563) 589-4212. Holy Ghost Senior 9% - Frantz Community Investors Pro Forma Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Revenue One Bedroom 60% 42,670 43,523 44,394 45,282 46,187 47,111 48,053 49,014 49,995 50,995 52,014 53,055 54,116 55,198 56,302 One Bedroom 40% 9,489 9,678 9,872 10,069 10,271 10,476 10,686 10,899 11,117 11,340 11,567 11,798 12,034 12,275 12,520 Oncome Bedroom 30% 3,565 3,637 3,709 3,784 3,859 3,937 4,015 4,096 4,177 4,261 4,346 4,433 4,522 4,612 4,704 One Bedroom Market 14,223 14,508 14,798 15,094 15,396 15,704 16,018 16,338 16,665 16,998 17,338 17,685 18,039 18,399 18,767 Two Bedroom 60% 102,477 104,526 106,617 108,749 110,924 113,143 115,406 117,714 120,068 122,469 124,919 127,417 129,965 132,565 135,216 Two Bedroom 40% 16,217 16,541 16,872 17,209 17,554 17,905 18,263 18,628 19,001 19,381 19,768 20,164 20,567 20,978 21,398 Two Bedroom 30% 4,811 4,908 5,006 5,106 5,208 5,312 5,418 5,527 5,637 5,750 5,865 5,982 6,102 6,224 6,349 Two Bedroom Market 17,079 17,421 17,769 18,125 18,487 18,857 19,234 19,619 20,011 20,412 20,820 21,236 21,661 22,094 22,536 Potential Gross Income 210,532 214,742 219,037 223,418 227,886 232,444 237,093 241,835 246,672 251,605 256,637 261,770 267,005 272,345 277,792 Vacancy (14,737) (15,032) (15,333) (15,639) (15,952) (16,271) (16,597) (16,928) (17,267) (17,612) (17,965) (18,324) (18,690) (19,064) (19,445) Effective Gross Income 195,795 199,710 203,705 207,779 211,934 216,173 220,496 224,906 229,405 233,993 238,672 243,446 248,315 253,281 258,347 Operating Expenses Grounds 8,700 8,961 9,230 9,507 9,792 10,086 10,388 10,700 11,021 11,352 11,692 12,043 12,404 12,776 13,160 Maintenance 35,815 36,889 37,996 39,136 40,310 41,519 42,765 44,048 45,369 46,730 48,132 49,576 51,064 52,596 54,173 Utilities 15,341 15,801 16,275 16,764 17,266 17,784 18,318 18,867 19,434 20,017 20,617 21,236 21,873 22,529 23,205 Administrative 38,675 39,698 40,749 41,829 42,938 44,078 45,249 46,452 47,688 48,958 50,263 51,604 52,982 54,397 55,852 Insurance 10,150 10,455 10,768 11,091 11,424 11,767 12,120 12,483 12,858 13,243 13,641 14,050 14,471 14,906 15,353 Replacement Reserves 8,700 8,961 9,230 9,507 9,792 10,086 10,388 10,700 11,021 11,352 11,692 12,043 12,404 12,776 13,160 Real Estate Taxes 2,457 2,457 2,457 2,457 2,457 2,457 2,457 2,457 2,457 2,457 23,663 23,929 24,197 24,469 24,744 Total Expenses 119,837 123,222 126,705 130,290 133,979 137,777 141,685 145,707 149,847 154,109 179,701 184,480 189,395 194,449 199,646 Net Operating Income 75,957 76,489 77,000 77,489 77,955 78,396 78,812 79,199 79,557 79,884 58,971 58,966 58,920 58,833 58,701 Debt Service 54,903 54,903 54,903 54,903 54,903 54,903 54,903 54,903 54,903 54,903 35,585 35,585 35,585 35,585 35,585 Before Tax Cash Flow 21,054 21,585 22,097 22,586 23,052 23,493 23,908 24,296 24,654 24,981 23,386 23,380 23,335 23,247 23,116 DSCR 1.38 1.39 1.40 1.41 1.42 1.43 1.44 1.44 1.45 1.45 1.66 1.66 1.66 1.65 1.65 Holy Ghost Senior Affordable Housing - Frantz Community Investors Pro Forma (without abatement) Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Revenue One Bedroom 60% 42,670 43,523 44,394 45,282 46,187 47,111 48,053 49,014 49,995 50,995 52,014 53,055 54,116 55,198 56,302 One Bedroom 40% 9,489 9,678 9,872 10,069 10,271 10,476 10,686 10,899 11,117 11,340 11,567 11,798 12,034 12,275 12,520 Oncome Bedroom 30% 3,565 3,637 3,709 3,784 3,859 3,937 4,015 4,096 4,177 4,261 4,346 4,433 4,522 4,612 4,704 One Bedroom Market 14,223 14,508 14,798 15,094 15,396 15,704 16,018 16,338 16,665 16,998 17,338 17,685 18,039 18,399 18,767 Two Bedroom 60% 102,477 104,526 106,617 108,749 110,924 113,143 115,406 117,714 120,068 122,469 124,919 127,417 129,965 132,565 135,216 Two Bedroom 40% 16,217 16,541 16,872 17,209 17,554 17,905 18,263 18,628 19,001 19,381 19,768 20,164 20,567 20,978 21,398 Two Bedroom 30% 4,811 4,908 5,006 5,106 5,208 5,312 5,418 5,527 5,637 5,750 5,865 5,982 6,102 6,224 6,349 Two Bedroom Market 17,079 17,421 17,769 18,125 18,487 18,857 19,234 19,619 20,011 20,412 20,820 21,236 21,661 22,094 22,536 Potential Gross Income 210,532 214,742 219,037 223,418 227,886 232,444 237,093 241,835 246,672 251,605 256,637 261,770 267,005 272,345 277,792 Vacancy (14,737) (15,032) (15,333) (15,639) (15,952) (16,271) (16,597) (16,928) (17,267) (17,612) (17,965) (18,324) (18,690) (19,064) (19,445) Effective Gross Income 195,795 199,710 203,705 207,779 211,934 216,173 220,496 224,906 229,405 233,993 238,672 243,446 248,315 253,281 258,347 Expenses Grounds 8,700 8,961 9,230 9,507 9,792 10,086 10,388 10,700 11,021 11,352 11,692 12,043 12,404 12,776 13,160 Maintenance 35,815 36,889 37,996 39,136 40,310 41,519 42,765 44,048 45,369 46,730 48,132 49,576 51,064 52,596 54,173 Utilities 15,341 15,801 16,275 16,764 17,266 17,784 18,318 18,867 19,434 20,017 20,617 21,236 21,873 22,529 23,205 Administrative 38,675 39,698 40,749 41,829 42,938 44,078 45,249 46,452 47,688 48,958 50,263 51,604 52,982 54,397 55,852 Insurance 10,150 10,455 10,768 11,091 11,424 11,767 12,120 12,483 12,858 13,243 13,641 14,050 14,471 14,906 15,353 Replacement Reserves 8,700 8,961 9,230 9,507 9,792 10,086 10,388 10,700 11,021 11,352 11,692 12,043 12,404 12,776 13,160 Real Estate Taxes 21,186 21,420 21,657 21,897 22,140 22,386 22,635 22,888 23,143 23,402 23,663 23,929 24,197 24,469 24,744 Total Expenses 138,567 142,185 145,905 149,730 153,663 157,706 161,864 166,138 170,534 175,053 179,701 184,480 189,395 194,449 199,646 Net Operating Income 57,228 57,525 57,799 58,048 58,272 58,467 58,633 58,768 58,871 58,939 58,971 58,966 58,920 58,833 58,701 Debt Service 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 44,093 Before Tax Cash Flow 13,135 13,433 13,707 13,956 14,179 14,374 14,540 14,676 14,778 14,847 14,879 14,873 14,828 14,740 14,608 DSCR 1.30 1.30 1.31 1.32 1.32 1.33 1.33 1.33 1.34 1.34 1.34 1.34 1.34 1.33 1.33 1(�n �� f � • w s nn� a el T w - 101315501] F2 0-00022066, III . . `9� 1013156004 1013155014 1013155098 Notice-These mapsare compiled forassessment and tax information purposes from official county records.All map information shown is forfhe forgoing purpose and does not represent survey of land. RESOLUTION NO. 402-15 RESOLUTION FINDING THAT THE DESIGNATION OF THE PARAGON SQUARE URBAN REVITALIZATION PLAN IS NECESSARY FOR REHABILITATION AND CONSERVATION OF THE HERINAFTER DESCRIBED PROPERTY AND URBAN REVITALIZATION AREA IS NECESSARY IN THE INTERESTS OF THE PUBLIC HEALTH, SAFETY, AND WELFARE OF THE RESIDENTS OF THE CITY Whereas, the City Council of the City of Dubuque finds that the properties at 2887 - 2901 Central Avenue (Property) are currently vacant and underutilized, and Frantz Community Investors has proposed to rehabilitate the Property and create 29 senior affordable apartments and restore both buildings on the proposed parcels to their original historic significance; and Whereas, the City supports Economic Development, Historic Preservation, and promotes Affordable Housing to benefit the citizens of Dubuque; and Whereas, the Property is located in an area eligible for the Urban Revitalization Tax Exemption program; and Whereas, in the area proposed for designation under the Urban Revitalization Act there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use as defined by Section 404.1(3) of the Iowa Code; and Whereas, through the Urban Revitalization Program, the Property is eligible to receive a one hundred percent exemption from taxation on the actual value added by the improvements for a period of ten years so long as it is assessed as residential property 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the rehabilitation of the hereinafter described Property legally described as 2887 Central Avenue — Lot 2 — I Paragon Square, Dubuque Iowa 2901 Central Avenue — Lot 1 — I Paragon Square, Dubuque Iowa, according to the recorded plat thereof is deemed necessary in the interest the residents of the City. Section 2. That the City Council supports Frantz Community Investors' Petition that 2887 - 2901 Central Avenue be designated a Urban Revitalization Area and supports the developer's efforts to receive a tax credit award from the Iowa Finance Authority for this Development. Section 3. That the City Council approve the resolution supporting he project and authorize staff to work with the City Assessor to complete the form 5S for submission by Developer prior to December 7, 2015 deadline for consideration. Section 4. That the proposed Development is consistent with the City of Dubuque's affordable housing strategies and its goal to implement its comprehensive plan. Passed, approved and adopted this 16th day of Novemb 2 15 Attest: OPt*AV'''. Ke in,F. Firnstahl, ty Clerk Roy D. Bl Mayor EXHIBIT 5S IOWA FINANCE AUTHORITY LOCAL GOVERNMENT CONTRIBUTION Form(s) shall be completed by the qualified Government Entity or Political Subdivision along with any additional supporting documents as required in QAP Section 6.2.3. Project Name Paragon Square (Holy Ghost) Project Address 2887-2901 Central Avenue, Dubuque, IA 52001 Ownership Entity Name Holy Ghost Dubuque Building, L.L.C.; subsidiary of Franz Community Investors Iowa Finance Authority (IFA) encourages developers to coordinate with Iowa communities regarding community revitalization plans, where applicable. A Local Government Contribution creates a presumption that the project is not in conflict with the local government's community revitalization plan, if any. This form will verify the Local Government Contribution effort referenced in the Qualified Allocation Plan (QAP). A Local Government Contribution can be provided by a qualified Government Entity or Political Subdivision. QAP Section 6.2.3 states the following items will constitute a Local Government Contribution: Form of Contribution Additional Supporting Documents Cash Contribution Commitment letter Gift of Land or Building Third party MAI certified appraisal Tax Abatement (not tax exemption) Scoring exhibit only Tax Increment Financing Project specific resolution of the city council Urban Revitalization Tax Exemption (URTE) Project specific resolution of the city council Enterprise Zone Credits Scoring exhibit only Enterprise Zone Sales Tax Rebates Scoring exhibit only Waiver of Fees Scoring exhibit only City HOME Scoring exhibit only Below Market Interest Rate Loan Calculation showing value of imputed savings using a market rate of seven percent (7%) with a maximum 20 year loan term and a maximum 30 year amortization QAP Section 6.2.3 states the agency making the Local Government Contribution shall indicate the value of its contribution. The value of the Local Government Contribution is the value of the contribution made by the qualified Government Entity or Political Subdivision minus the value of any consideration or accommodation received by the qualified Government Entity or Political Subdivision in return for the contribution. The Governmental Entity or Political Subdivision completing this form understands that IFA will rely on these valuations to determine whether the Applicant has met the requirements of the QAP to receive points for Local Government Contribution. IFA reserves the right to limit the amount of fees waived by any Government Entity or Political Subdivision to one percent (1%) of the Total Project Costs. For scoring purposes under this category, a Government Entity or Political Subdivision contribution to a Project provided through a certified Local Housing Trust Fund (LHTF) will be considered a qualified Local Government Contribution only if the Applicant provides documentation from the LHTF showing the Government Entity or Political Subdivision has made contributions to the LHTF during the current fiscal year totaling at least the amount of the proposed Local Government Contribution to the Project. 2016 Round EXHIBIT 5S IOWA FINANCE :,JT IIOKIT'! Qualified Governmental Entity or Political Subdivision Contribution(s) (21 points maximum) ❑ CASH CONTRIBUTION — Commitment letter attached Amount Source of Cash Name of Entity Making Contribution ❑ GIFT OF LAND — Third party MAI certified appraisal attached Appraised Amount/Value Name of Entity Making Contribution Location/Address of property: Is land held free and clear of encumbrances? ❑ YES ❑ NO If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied. ❑ GIFT OF BUILDING — Third party MAI certified appraisal attached Appraised Amount/Value Name of Entity Making Contribution Address of building(s): Is land held free and clear of encumbrances? ❑ YES ❑ NO If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied. ❑ TAX ABATEMENT (not exemption) — No attachment required Amount/Value Term of Abatement Describe How Amount Was Determined Name of Entity Making Contribution $196,450 10 Years Calculated using income approach and verified by City of Dubuque Assessor, attached City of Dubuque ❑ TAX INCREMENT FINANCING — Project specific resolution from the City Council attached Amount/Value Name of Entity Making Contribution URBAN REVITALIZATION TAX EXEMPTION — Project specific resolution from the City Council attached Amount/Value Term of Exemption Describe How Amount Was Determined Name of Entity Making Contribution $196,450 10 Years Calculated using income approach and verified by City of Dubuque Assessor, attached City of Dubuque 2016 Round EXHIBIT 5S IOWA FINANCE Qualified Governmental Entity or Political Subdivision Contribution(s) (21 points maximum) ❑ CASH CONTRIBUTION — Commitment letter attached Amount Source of Cash Name of Entity Making Contribution ❑ GIFT OF LAND — Third party MAI certified appraisal attached Appraised Amount/Value Name of Entity Making Contribution Location/Address of property: Is land held free and clear of encumbrances? ❑ YES ❑ NO If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied. ❑ GIFT OF BUILDING — Third party MAI certified appraisal attached Appraised Amount/Value Name of Entity Making Contribution Address of building(s): Is land held free and clear of encumbrances? ❑ YES ❑ NO If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied. ❑ TAX ABATEMENT (not exemption) — No attachment required Amount/Value Term of Abatement Describe How Amount Was Determined Name of Entity Making Contribution $196,450 10 Years Calculated using income approach and verified by City of Dubuque Assessor, attached City of Dubuque ❑ TAX INCREMENT FINANCING — Project specific resolution from the City Council attached Amount/Value Name of Entity Making Contribution ® URBAN REVITALIZATION TAX EXEMPTION — Project specific resolution from the City Council attached Amount/Value Term of Exemption Describe How Amount Was Determined Name of Entity Making Contribution $196,450 10 Years Calculated using income approach and verified by City of Dubuque Assessor, attached City of Dubuque 2016 Round EXHIBIT 5S ❑ ENTERPRISE ZONE CREDIT (equity value) — No attachment required IOWA FINANCE Amount/Value Name of Entity Making Contribution ❑ ENTERPRISE ZONE SALES TAX REBATE — No attachment required. Amount/Value Name of Entity Making Contribution ❑ WAIVER OF FEES — Limited to one percent (1 %) of Total Pr Amount/Value Type of Fees Describe How Amount Was Determined Name of Entity Making Contribution Name of Entity Making Contribution 7% ❑ CITY HOME LOAN — No attachment required Amount/Value Name of Entity Making Contribution ❑ BELOW-MARKET INTEREST RATE LOAN - Calculation showing value of imputed savings using a market rate of seven percent (7%) with a maximum 20 year loan term and a maximum 30 year amortization attached Amount/Value Market Interest Rate Below- Market Interest Rate Describe How Calculated Savings Was Determined Name of Entity Making Contribution 7% City of Dubuque Agency Name (Typed) Roy D. Buol Name of Agency Representative (Typed) Mayor Title of Agency Representative (Typed) 41, Signatur9 i Agency Representative 2016 Round 11/25/2015 Date YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NOI 75,957 76,489 77,000 77,489 77,955 78,396 78,812 79,199 79,557 79,884 58,971 58,966 58,920 58,833 58,701 TAX REDUCTION 1,825 1,825 1,825 1,825 1,825 1,825 1,825 1,825 1,825 1,825 NEW NOI 74,132 74,664 75,175 75,664 76,130 76,571 76,987 77,374 77,732 78,059 CAP RATE 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 0.0947 ASSESSED VALUE $ 782,811 $ 788,424 $ 793,820 $ 798,986 $ 803,908 $ 808,568 $ 812,952 $ 817,044 $ 820,824 $ 824,277 $ 622,718 $ 622,658 $ 622,176 $ 621,252 $ 619,862 BASE VALUE $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ 144,100 $ - $ - $ - $ - $ - INCREMENT VALUE $ 638,711 $ 644,324 $ 649,720 $ 654,886 $ 659,808 $ 664,468 $ 668,852 $ 672,944 $ 676,724 $ 680,177 $ 622,718 $ 622,658 $ 622,176 $ 621,252 $ 619,862 ROLLBACK RATE 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 TAXABLE VALUE $574,840 $579,891 $584,748 $589,398 $593,827 $598,021 $601,967 $605,649 $609,052 $612,159 $560,446 $560,392 $559,959 $559,127 $557,876 TAX RATE 0.03301933 0.03301933 0.03301933 0.03301933 0.03301933 0.03301933 0.0330193 0.0330193 0.0330193 0.0330193 TAX ABATEMENT $18,980.82 $19,147.62 $19,307.99 $19,461.52 $19,607.76 $19,746.27 $19,876.55 $19,998.13 $20,110.49 $20,213.09