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Private Retaining Walls_Revolving Load FundTHE CITY OF DUBUQUE Masterpiece on the Mississippi Dubuque All-American City 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Historic Preservation Revolving Loan Fund -- Private Retaining Walls DATE: May 13, 2008 Planning Services Manager Laura Carstens is recommending approval of extending eligibility for the Historic Preservation Revolving Loan Fund to include the repair and reconstruction of private retaining walls that are an integral, structural part of a property. The Historic Preservation Revolving Loan Fund provides loans up to $25,000 for 10 years at 3% interest for exterior improvements to properties in the Jackson Park, Cathedral, West 11th Street, Langworthy, and Old Main Historic Districts and to individually designated historic properties. Loan applications are subject to design review and approval by the Historic Preservation Commission. The Historic Preservation Revolving Loan Fund is capitalized with $200,000 from the City's General Fund and $200,000 from Premier Bank Revolving Account in the form of a no-interest, 10-year loan. The loan agreement with Premier Bank allows changes to the Historic Preservation Revolving Loan Fund guidelines by mutual consent of Premier Bank and the City. Premier Bank has agreed to the change. Retaining walls that are an integral, structural part of a property are necessary to allow continued use of a property. The terrain of Dubuque has made these retaining walls a prominent feature of our historic areas. With the conditions experienced in Dubuque this past winter and spring, we expect to see requests for City assistance to repair and reconstruct these walls. Structural problems with these walls can create a safety concern for property owners on both sides of a wall. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment Micliael C. Van Milligen cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager THE CITY OF DUBUQUE Masterpiece on the Mississippi Dubuque All-American City 2007 TO: Michael C. Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager SUBJECT: Historic Preservation Revolving Loan Fund -- Private Retaining Walls DATE: May 14, 2008 Introduction The purpose of this memorandum is to request your support to extend eligibility for the Historic Preservation Revolving Loan Fund (HPRLF) to include the repair and reconstruction of private retaining walls that are an integral, structural part of a property. Background The HPRLF provides loans up to $25,000 for 10 years at 3% interest for exterior improvements to properties in the Jackson Park, Cathedral, West 11th Street, Langworthy, and Old Main Historic Districts and to individually-designated historic properties. Loan applications are subject to design review and approval by the Historic Preservation Commission (HPC). The program brochure is enclosed. The HPRLF is capitalized with $200,000 from the City's General Fund and $200,000 from Premier Bank Revolving Account in the form of a no-interest, 10-year loan. The loan agreement with Premier Bank allows changes to the HPRLF guidelines by mutual consent of Premier Bank and the City. Discussion Retaining walls that are an integral, structural part of a property are necessary to allow continued use of a property. The terrain of Dubuque has made these retaining walls a prominent feature of our historic areas. With the conditions experienced in Dubuque this past winter and spring, we expect to see requests for City assistance to repair and reconstruct these walls. Structural problems with these walls can create a safety concern for property owners on both sides of a wall. Previously, the HPC has determined that retaining walls that serve a landscape function are not eligible for HPRLF money. This policy would continue. Determination of whether a private retaining wall is an integral, structural part of a property or serves only a landscape function would be made by the HPC with input from the HPRLF Review Committee. Historic Preservation Revolving Loan Fund -- Private Retaining Walls Page 2 The HPRLF Review Committee is comprised of City staff from the Planning Services, Housing and Community Development, and Building Services Departments and Historic Preservation Commissioners. This committee reviews HPRLF applications for consistency with the program guidelines and applicable City Codes. The Building Services Department issues permits for retaining walls over two (2) feet in height. If this proposal to extend the HPRLF to retaining walls is approved, City Engineering staff will be invited to join the HPRLF Review Committee when an application includes a retaining wall to help determine if a private retaining wall is an integral, structural part of a property. The HPC and Premier Bank both have a role in establishing the HPRLF guidelines. Their recommendations are presented to the City Council for final review and approval. Jeffrey P. Mozena, President and CEO, Premier Bank, has indicated that the bank is in agreement with amending the purpose of the HPRLF to allow usage, as proposed, for repair and reconstruction of private retaining walls. Mr. Mozena has further indicated that Premier Bank is pleased to assist homeowners that are struggling with the high cost of repair and maintenance of stone walls in the historic preservation districts. The HPC will consider the proposal at their regular meeting on May 15, 2008. Requested Action The requested action is for you to support use of the HPRLF for the repair and reconstruction of private retaining walls that are an integral, structural part of a property. Enclosure cc Rich Russell, Building Services Manager David Harris, Housing and Community Development Director Gus Psihoyos, City Engineer Jerelyn O'Connor, Neighborhood Development Specialist Purpose Preservation loans are available on a competitive basis to property owners In historic districts , con- servation districts or who own a City designated Landmark ar indiv/dua/h/stock property for exte- rior rehabilitation projects that meet the Secretary of the Interior's Standards for Rehabilitation. This loan fund provides positive incentives to prop- erty owners in these districts to maintain and im- prove the community's architectural heritage. Dubuque THE CITY OF DUBUQUE Masterpiece on the Mississippi Planning Services Department City Hall 50 W.13Ih Street Dubuque IA 52001-4864 Phone: (563) 589-4210 Fax: (563)589-4221 Email: planning@cityofdubuque.org HISTORIC.. PRESERVATION REVOLVING LOAN FUND Applicant Eligibility The owner of any property at least 50 years old and located in Jackson Park, Cathedral, W. 11th Street, Old Main or Langworthy Historic Preservation Districts or designated as a City Landmark or individual his- toric property or a conservation district Loan Amount/Terms Up to $25,000 "'' ~ 3% interest rate 10 years Monthly principal and interest payments begin after project completion, but not longer than 6 months after loan closing. Limit one loan outstanding per building. Work must be initiated within three (3) months and completed with six (6) months from date of Historic Preservation Commission approval. The Commission may grant additional time, if needed. Security Preferably at least a 2nd mortgage position and prom- issory note, or an amount not to exceed 100% of loan- to-value. The property value will be based on the as- sessed value, or on the appraised value after im- provements if the assessed value is not a good indica- tor. Application Period Initial open enrollment for first 60 days of the fiscal year (July and August); applications accepted until all funds are committed. Assistance with the design review portion of the appli- cation is available during regular business hours by appointment at the Planning Services Department, 50 W. 13th Street, Dubuque (City Hall). Eligible Improvements Exterior work that results in property improvements that meet the Secretary of the Interior's Standards and Guide- linesfor Rehabilitation. Work must meet the Secretary of the Interior's Stan- dardsand Guidelines for Rehabilitation and any specific design standards established for the pertinent Historic Pres- ervation District. Project Ranking Projects will be ranked by the architectural or historical sig- nificance of the building, and the priority of the work. The architectural or historical significance will be based on the Historic Properties inventory of 1978-1979 and Architec- tural/Historic Survey/Evaluation of 2000-2005. Highest priority will 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. Second priority will be given to projects that use preservation alternatives, such as different ma- terials, techniques or methods for rehabilitation ' of historic buildings. Projects will receive a lower rating if the property owner is a previous borrower under this program. Review and Approval Applications will be accepted during regular business hours at the Housing and Community Development Department, 1805 Central Avenue, Dubuque, Iowa. All applications must include required information on in- come, specific work proposed, and at least two estimates received from full-time contractors licensed and insured by the State of Iowa. Homeowners may do the work themselves; written quotes on the costs of materi- als must be provided. Labor by homeowners is not covered. Incomplete applications will not be processed. A loan review committee of City Staff and Historic Preservation Commissioners will rank applications prior to income verification, and make recommen- dations relative to loan amount, and review com- pliance with City Housing, Building and Historic Preservation Codes, and with Section 106 of the Code of Federal Regulations. The Historic Preservation Commission will review the loan application, the proposed work, and the committee's recommendations. The Commission must approve a Certificate of Appropriateness for all proposed work prior to issuance of permits or processing of loans. All applicable City reviews and permits must be completed; e.g., building permits, rental license, housing inspection, before any work begins. Work begun prior to obtaining a required permit, review or approval will not be eligible for loan assistance. ~ ~ ~^ ^~ ~ ~ ^~ ~^ THE CITY OF DUBUQUE Masterpiece on the Mississippi Dubuque All-American City 2007 Planning Services Department City Hall 50 West 13th Street Dubuque, IA 52001-4864 (563) 589-4210 phone (563)589-4221 fax (563) 690-6678 TDD planning@cityofdubuque.org May 16, 2008 The Honorable Mayor and City Council City of Dubuque 50 W. 13th Street Dubuque IA 52001 RE: Historic Preservation Revolving Loan Fund -- Private Retaining Walls Dear Mayor and City Council Members: The purpose of this letter is to express the Historic Preservation Commission's support to extend eligibility for the Historic Preservation Revolving Loan Fund (HPRLF) to include the repair and reconstruction of private retaining walls that are an integral, structural part of a property. The HPRLF provides loans up to $25,000 for 10 years at 3% interest for exterior improvements to properties in the Jackson Park, Cathedral, West 11th Street, Langworthy, and Old Main Historic Districts and to individually-designated historic properties. Loan applications are subject to design review and approval by the Historic Preservation Commission. The HPRLF provides positive incentives to property owners to maintain and improve the community's architectural heritage. Previously, the HPC has determined that retaining walls that serve a landscape function are not eligible for HPRLF money. This policy would continue. To distinguish landscaping walls from retaining walls that are an integral, structural part of a property, the Historic Preservation Commission recommends the following test for loan eligibility: If a wall did not exist, and the property could not be graded to a 3:1 slope from the property line to the structure without impacting the structure, then the wall is eligible. By a vote of 6 to 0, the Historic Preservation Commission recommends that the City Council support use of the HPRLF for the repair and reconstruction of private retaining walls that are an integral, structural part of a property as defined above. Sincerely, Christine Happ Olson, Chairperson Historic Preservation Commission Service People Integrity Responsibility Innovation