Urban Revitalization District_2160 Elm StreetTHE CITY OF Dubuque
~LTB E All-IUt~icaCity
Masterpiece on the Mississippi "
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 2160 Elm Street Urban Revitalization
DATE: March 24, 2008
Michelle Mihalakis proposes to construct an 18-unit single room occupancy (SRO) at
2160 Elm and adjoining vacant properties. The property currently contains a single
family home and is located in the Washington Neighborhood Urban Revitalization
District. The current urban renewal district allows for property tax exemption only for
improvements, which include rehabilitation and additions to the existing structures. This
project would not currently be eligible for property tax exemption since an existing
structure would be removed and a new structure constructed.
Housing and Community Development Department Director David Harris recommends
the City Council direct staff to prepare an ordinance removing 2160 Elm Street and
adjoining vacant properties from the Washington Neighborhood Urban Revitalization
District. This would allow asite-specific urban revitalization district to be established for
the purpose of development of an affordable housing project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~
i2~' Z
Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department
THE CITY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
TO: Micha I~r(an Milligen, City Manager
~+~
FROM: David arris, Housing and Community Development Department
SUBJECT: 2160 Elm Street Urban Revitalization
DATE: March 21, 2008
Introduction
The purpose of this memorandum is to request the City Council to remove 2160 Elm Street
and adjoining vacant properties from the Washington Neighborhood Urban Revitalization
District and re-establish these properties as asite-speck UR district for the purpose of
development of an affordable housing project.
Discussion
Michelle Mihalakis proposes to construct an 18 unit single room occupancy (SRO) at 2160
Elm and adjoining vacant properties. The property currently contains a single family home
and is located in the Washington Neighborhood Urban Revitalization District. The current
UR district allows for property tax exemption only for improvements, which include
rehabilitation and additions to the existing structures. This project would not currently be
eligible for property tax exemption since an existing structure would be removed and a new
structure constructed.
In reviewing her request with Assistant Attorney Tim O'Brien, he found that the existing
Washington Neighborhood Urban Revitalization District would need to be amended to
remove the property from the District and re-establish a new urban revitalization district.
The existing District was expanded and amended on March 9, 2007. Once the Washington
Neighborhood UR district is amended, the same process would be undertaken to establish
site-specific urban revitalization district for the 2160 Elm Street project.
Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act) authorizes
cities to designate urban revitalization areas. The City must prepare a revitalization plan for
each designated area and hold at least one public hearing after proper notice. The law
mandates speck criteria and procedures that must be followed.
Recommendation
I recommend that the City Council direct staff to prepare an ordinance removing 2160 Elm
Street and adjoining vacant properties from the Washington Neighborhood Urban
Revitalization District. This would allow asite-specific urban revitalization district to then be
established for the properties.
Action Step
The action requested is for the Council to review the request and direct staff to prepare
an ordinance amending the Washington Neighborhood Urban Revitalization District.
Prepared by Aggie Tauke, Community Development Specialist
F:IUSERSWTAUKE\Urban ReviteWlanasseh House~2160 UR Council Memo.OB.doc
SaCvia Mouse, ~Gtd
2545 Jackson Street .o- Dubuque, IA 52001
563-690-1375 ~ 563-599-2980
March 10, 2008
Dubuque City Council
Federal Historic Building
6'~ and Locust Street
Dubuque, IA 52001
Dear Council Members,
Please consider my request to have 2160 Elm Street and the northern most portion of Burton
Boyes Place #3 to be removed from the Washington Neighborhood District and reinstated in a
separate site-specific district.
Salvia House, Ltd. has conditionally been approved to receive an $800,000 award to build an 18-
room SRO for low- to medium-income women to be located on this property. This project is not
economically feasible without aten-year tax abatement (see enclosed proforma).
The four adjoining lots are blighted with a dilapidated house that is not really fit for human
habitation presently on the property. The house would be torn down and replaced with a newly
constructed brick edifice that will architecturally fit the neighborhood, accompanied by lighting,
landscaping, and security cameras, thus greatly enhancing the block.
Should you have any questions or concerns, please contact me at 563-599-2980. Thank you for
your consideration.
Respectfull~_
_.,.. ~_
,_---
ci~i' elle Mih
CASH FLOW PROFORMA
Project Satvta House Income Escalator 2.00% Expense Escalator 3.00% Vacancy Rete ]0.00% Number of Units
Year j Year Year Year Year Yeer Yaer ' Year + Year Year i Yeer Yeer Yeer Yeer ; Yeer Year i Year + Yeer ; Yeer
1 II
i 2 3 4 5 1 0 ~ 7 ~ 8 9 ~ 10 ~ 11 12 ~ 13 ~ 14 ~ 15 18 i 17 ; 18 ~ 19 i
INCOME
Rental $61,560 61,662 61,785 61,908; 62,031 62,155; 62,279 62,403 62,527 62,6521 62,777 62,902, 63,027 63,153; 63,2'79
................_..................._.................
Laundry ......................
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,
' 0
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1 I I
f 1 I ~ ~ ~ ~ ~ ................._ ~ ~ R...._._............~
Other O 0 O 0 OE 01 0 0 0 OI 0' D 0 0
0
GROSS INCOME 61560s
+ 81882 81785 1 61908
0 62031 62155'
' 62279 62403 62527 62852{ 82777 82902 63027 63153]' 63279 t I 1
less Vacancies 6156 6186 6178 819 6203 8215 6227 6240 6252 62851 82771 6290 6302 63181 8327; I 1 ~ 3
EFFECTIVE INCOME 55404. 55496; 55607; 55718{ 55828 55940, 56052; 56163, 56275 56387 5650D1 56612, 58726 568381 56952! i
EXPENSES
Advertising
................................................._.._. 800
._..........w....... 818
........_......„...1 636
...._............... 655+
......w....w.... 674
..........._w.._
' 894'
................»..
. 714
......ww.._.... 735
................. 757
.......ww_...._ 778 8021
......w„..,...._.
...w._.....w..
' 8281
..........w._.... 8501
..................... 8751 9011
..................... 1
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Offlce E pane
....._................_._... ......................
1000
......................
1030
........_w........
1080+
.....................} ~
1091+
.....................
1123
.........._.........
1158
..............._....g
1190
w.w_.._........
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1225
........w..........
1261
..................._
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1298+ 13361
..._................}....._..........._;
1378
.....................
~ 1
1417
....................~ i
1459 1502
............__.....1................_...
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....................f
....................1
....................~ i
..........._........1
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Telephone
............... .................... 2400
...............
0 2472
............. 2546
.............. 2622
..._.........
~ 2700
...............1 2781'
..................~ 288
w............ t
1 2951
......».....~ 3D39
.......... ...~ 313D3 3223
. »»_..._... ..........
~ 33191
...........w 3416+
............. 3520 3825
.........._.. ......._..... .........._...
~ +
.............. ................~ ...................~
Management 700 7210 ?426 7648 7877' 81131 8358 88081 6884 8129 440Z 58841 3849 3928 4014
~
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PersonneU roll
,,._._..,.»,..,.»PeY i
,»0 3
0
0 i
0 1
0
0
0
0
0
0 0
0 ,
0 I
0 0
~ i 1
Legal Fees
..................w....................._............. 400
,.._....._........... 412
.....................
5 424
.................._. 4381
...,,................} 4441
......_..w........ 482'
._..............w 4753
_..w..............y 480
........._w...... 5D31
..................._r 518} 5331
......_............~.....................1 548
.....,...........,... 564'
..................... 570+ 587'
..........._..._...1.,...................
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.....................3 t
.....................
.....................
Accounting 3500{ 360 3713 38241 39381 4056 4177 4302 4431 4583' 41399 4838 4984 5133' S288
~
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Grounds Expense
....................................._................. 600
.......................~ 8181
...................... 838
..................... 654
.................
...~ 873'
.
.. 893'
~ 713; 734 756'
~ 778 801
.
~ 825 848 874 900
~
~
~ 3
Maintenance Supplies
1000
1030
1080fi .
10911 ....
...............
1123 .............,.......
1156 ..........µ......_
1190 ........._..........
1225+ .....................
12611 ...............
............_............
1298 1338 ...............,.....
1378 .....................
1000 .....................;.....................
10003 10003 .....................
3 ...................... ....................
~ ................
1
Maintenance Services .40001 41201 42431 4370 45011 48381 47751 4918 1 5065{ 52161 53721 55333 3438 30001 30201 ~~ 3 1
Utilities ,12000 123DD1 12730 131111 13504 139091 13326 137551 141971 13582 141211 11604 151021 156153 14143 3 1 1 1
Weter& Sewer
........................................................ 1440+
. ......... 14831
f......._............ 1527'
..........._........~ 15721
....................~ 18191
........_............ 1887
._..........._.... 1717
..........._........ 17881
_................... 1821
........_....w.... 18751 1831
.w.................
........
......_..
1 19881
..
.
{ 2047
~ 21081 21711
1 1 ~ 1
Pest Control
500 i
515
530
5451 1
581
i
577
.........._.........}
594
.....................}
6111
....__............1
829
............._.......( ,
..
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647 866
......W............ ....
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8853 ......_.............
7051 ....................
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7261 747
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Trash Removal
800'
818'
8361
. 854
6731
)
8931
713'
7341
756'
778f 801
825
8493 .
...................1.
874 900
~ ,
1 ..................... 1
,Repairs
10001
103D
1060
10911
1123
1156'
11903
1225'
1261
1298 1336
1 1376'
10001
10D0
10011
1
1
~ _
~
Decorating ... .............»2001 206 212 218
1 2243 2301 2361 243 2501 2571 264 1 271' 2793 287 2953 1 3
..
'
Insurance 8000 8240 8487 874 9003 8273' 9551 9837' 81321 84351 10748 1 100701 11402 10744 11096 '
1
Other i I i ~ ' .......................................... }..................... .................... ...
SUB TOTAL 46240 46537 479861 49414 1 508831 52408 52973, 52349 1 52244 ; 51859] 53707 52521 1 53170 ; 53170 52696 1 E 1
plus Real Estate Taxes 534 5501 5661 5821 599 818 634 853 1 672 1 6921 712 733 1 755 1 7771 800 3 ~ t
TOTAL 46774' 47087 48552 49998 ' 51482+ 53D24 538071 53D02 1 52916 3 525511 54419 53254 1 53925 + 53947 53496 ' 1 +
plus Operating Reserves
.............................................. 2500
....................... 250D
................... 2500
.................. 2500
............ 5003
............._...... 500' 500+ 1000 1000 1 1000 500
.................... 1000 + 400
....................~ 400+ 5D0
..............w.....1..................... 1
}....................
1..................... 1
~ »
plus Replacements 20001 . 10001 10D01 1000 1000' 10D01 500' 1000 1000 1000' 500 1000 400 4001 500 ,
1 1
TOTAL EXPENSE8 512741 50587 52052 53498 529821 545241 54607' 55002 54918! 54551 55419 55254 1 54725 1 547471 54496 1 1 3 1
NET OPERATING INCOME 41301 4909+ 35551 2222 2848 + 1416 1445 1 1181 1359 + 1836+ 1081 1358 2000 1 2091 2456 I
less Debt Service
Cornentional Debt
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TOTAL DEBT 8ERVICE 0 0 O I 0 1 O I 0 0 1 0 0 , 0; 0 0 A 0 O I ~ I
CASH FLOW 4130 4909 3555 , 2222 2846 1418 1445 1161 1359 1836 1061 1358 ! 2000 2091 2456
DEBT COVERAGE 1 1 ! i ~ { ~ ; 1 E ~ 1 1 1 = 1