Marquette Hall, LLC Resolution of Support Copyrighted
April 3, 2017
City of Dubuque Consent Items # 19.
ITEM TITLE: Marquette Hall Resolution of Support
SUMMARY: City Manager recommending approval of a Resolution
supporting the Workforce Housing Tax Incentive program
application to the Iowa Economic Development Authority by
Cohen-Esrey for the Marquette Hall affordable, senior
housing project at 2222 Queen Street.
RESOLUTION in Support of a Workforce Housing Tax
Incentive Program application to be submitted to the Iowa
Economic Development Authority (I EDA) by Cohen Esrey
for Marquette Hall Project
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Marquette Hall - MVM Memo City Manager Memo
Staff Memo Staff Memo
Cohen-Esrey Letter Supporting Documentation
Resolution Resolutions
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City Support for Cohen-Esrey's Application to Iowa Economic
Development Authority for Workforce Housing Tax Credits to Finance the
Redevelopment of Marquette Hall
DATE: April 3, 2017
Housing & Community Development Department Director Alvin Nash recommends City
Council approval of a resolution supporting the Workforce Housing Tax Incentive
program application to the Iowa Economic Development Authority by Cohen-Esrey for
the Marquette Hall affordable, senior housing project at 2222 Queen Street, the former
Sacred Heart Elementary School, as requested in the April 3, 2017 letter from the
developer, Cohen-Esrey Development Group.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
vA&A-k—
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing & Community Development Director
THE CITY OF Dubuque
kwftwl
All-America City
DUB t 1 r
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
DATE: April 3, 2017
RE: City support for Cohen-Esrey's application to Iowa Economic
Development Authority for Workforce Housing Tax Credits to
finance the redevelopment of Marquette Hall
Introduction
This memorandum requests City Council support the Workforce Housing Tax Incentive
Program application to be submitted to the Iowa Economic Development Authority
(IEDA) by Cohen-Esrey for the redevelopment of Marquette Hall into affordable, senior
housing.
Background
In October 2016, Cohen-Esrey petitioned the City of Dubuque to designate an Urban
Revitalization Area to support the redevelopment of the former Sacred Heart
Elementary School, 2222 Queen Street, into 28 historic and affordable senior
apartments. The housing will be called Marquette Hall. The project proposed using
several funding sources for financing, included Low Income Housing Tax Credits
(LIHTC). The designation of the Urban Revitalization Area would show local support for
the project and increase the likelihood the project would receive an award in the
competitive state tax credit competition.
The City Council approved Resolution No. 383-16 in November, 2016 finding the
designation of the Marquette Hall Urban Revitalization Plan is necessary in the interest
of public health, safety, and welfare of the residents of the City of Dubuque and the
adaptive re-use of the building was consistent with the City of Dubuque's affordable
housing strategies and goals to implement the City's comprehensive plan.
The Iowa Finance Authority Announced on March 30, 2017 that Marquette Hall
received a Tax Credit Award of$381,237 for the senior housing project.
Discussion
The Developers propose to redevelop the former Sacred Heart Elementary School,
located at 2222 Queen Street, into 28 historic senior apartments, 25 of which are
affordable. Cohen-Esrey is presently requesting a resolution showing continued
support for the Marquette Hall project as the developer seeks additional financing
through the Workforce Housing Tax Incentive Program to secure Workforce Housing
Tax C red its.
Cohen-Esrey Affordable Partners development will preserve and restore the historic
Marquette Hall, built in 1915. The restored structure will provide affordable housing for
seniors in the North End Neighborhood of Dubuque.
The City of Dubuque Consolidated Plan identifies a need for housing for elderly
populations, homeless, and persons with disabilities. These populations often have
limited income and housing choices and will likely benefit from the additional affordable
housing options. The Consolidated Plan is a five-year plan for the use of Community
Development Block Grant funds in the community. The plan examines housing needs for
low and moderate income populations, earning up to 80% of area median income. The
City Consolidated Plan, updated for Fiscal Years 2016-2020, identified housing cost
burden as the primary housing problem faced by low and moderate income renters in
Dubuque. The ACS five year estimates for Selected Housing Characteristics provides
information on the number of households experiencing cost burden. Economists call a
household "cost burden" when housing costs exceed 30% of the household income. 2014
ACS estimates show 52% of renter households are cost burdened, compared with 21%
owner occupied with a mortgage (Figure 1).
With over half of the renters in Dubuque experiencing cost burden, the addition of
affordable, senior rental units will provide opportunity for seniors to live accessible in
housing they can afford.
Recommendation
I recommend that the City Council approve the attached resolution supporting the
Workforce Housing Tax Incentive program application to the Iowa Economic
Development Authority by Cohen-Esrey for Marquette Hall affordable, senior housing
project.
Prepared by: Erica Haugen, Community Development Specialist
2
Prepared by Kevin Firnstahl. City Clerk Address: City Hall- 50 W. 13th St Telephone: 589-4121
Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: 589-4121
RESOLUTION NO. 126-17
RESOLUTION IN SUPPORT OF A WORKFORCE HOUSING TAX INCENTIVE
PROGRAM APPLICATION TO BE SUBMITTED TO THE IOWA ECONOMIC
DEVELOPMENT AUTHORITY (IEDA) BY COHEN ESREY FOR MARQUETTE HALL
PROJECT
WHEREAS, the City of Dubuque has strongly supported the redevelopment of the
historic building at 2222 Queen Street by Cohen -Esrey Development Group (Marquette
Hall LLC) through numerous funding sources including $179,000 in Urban Revitalization
Tax Exemption (URTE) and $65,000 in cash toward the project; and
WHEREAS Cohen -Esrey Development Group (Marquette Hall LLC) has received a
Low -Income Housing Tax Credit (LIHTC) Award of $381,237 from the Iowa Finance
Authority on March 30, 2017; and
WHEREAS these funds will be used to develop 28 apartments, 25 of which are
affordable units for seniors age 55+.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
That the City of Dubuque supports Cohen -Esrey Development Group's (Marquette Hall
LLC) application to the Iowa Economic Development Authority (IEDA), specifically to the
Workforce Housing Tax Incentive Program, to secure Workforce Housing Tax Credits.
Passed, approved and adopted this 3rd day of April, 2017.
,/Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
COHEN
ESREY
INNOVATION•EXCELLENCE•VISION
April 3, 2017
Mr. Michael Van Milligen
City Manager
City of Dubuque
50 West 13th Street
Dubuque, IA 52001
Dear Mike,
just wanted to let you know that Cohen-Esrey Development Group will be seeking support from the
Iowa Economic Development Authority (IEDA) for Workforce Housing Tax Credits for Marquette Hall on
2222 Queen Street. IEDA asks that the city in which the request is being asked simply provide a
resolution stating it supports Cohen-Esrey Development Group's application.This is not a request to the
City of Dubuque for additional financial support for Marquette Hall.
In December 2016,the Iowa Finance Authority(IFA) informed the developers who submitted
applications (which were submitted on November 17, 2016)for Housing Tax Credits (LIHTC)that due to
a change in the tax credit environment,that we needed to reduce the pricing of the tax credits by .10
cents and encouraged developers to find other sources of funding to fill that gap.
To that end, Cohen-Esrey went ahead and on March 8, 2017 submitted an application for Workforce Tax
Credits to Iowa Economic Development Authority. It's a fairly simple application for the developer to
submit that can be done in a day.The application asked to list the support of the city for the project,
which we did (from the IFA/Marquette Hall submission). But last Friday, March 31, IEDA came back and
said that they would like specific language from the city regarding supporting the IEDA Workforce Tax
Credit application submitted by Cohen-Esrey Development Group.The dollar amount that can be
received for a project from IEDA is based on a formula and that formula stated that Marquette Hall
could get$142,000 in Workforce Tax Credits.
Thank you for the great support the City of Dubuque has given to make the Marquette Hall development
a reality and we look forward to continue to work together as we finalize this project.
Kind regards,
Brian
Brian Sweeney
Development Director
Cohen-Esrey Development Group
612.817.3266
www.cohenesrey.com