Economic Development Capital Improvement Program BudgetCopyrighted
September 18, 2017
City of Dubuque Consent Items # 11.
ITEM TITLE: Economic Development Capital Improvement Program
Budget
SUMMARY: City Manager recommending that reallocated
redevelopment funds from Fiscal Year 2017 CI P be
included in a future Fiscal Year 2018 budget amendment.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Economic Development $180,000 Over Budget in CIP City Manager Memo
3602438 -MVM Memo
Staff Memo Staff Memo
Downtown Housing Creation Project Funding Supporting Documentation
THE CITY OF
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2007 • 2012 • 2013 • 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Economic Development $180,000 Over Budget in CIP 3602438
DATE: September 13, 2017
Economic Development Director Maurice Jones advises that the City has made
commitments of $180,000 for two separate redevelopment projects, 1501 Jackson
Street ($120,000) and 2062 White Street ($60,000), but the funds were inadvertently not
encumbered in the financial system and were reallocated, and is requesting these funds
be appropriated subject to a future budget amendment.
Budget Director Jennifer Larson has identified $180,000 of Greater Downtown Tax
Increment Financing funds that are available for this purpose.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
THE CITY OF o Dubuque
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TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: $180,000 Over Budget in CIP 3602438
DATE: August 25, 2017
Economic Development
Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
INTRODUCTION
This memorandum provides an explanation for a current over -budget situation and
requests $180,000 to cover grants for housing creation projects that are now complete.
BACKGROUND
The downtown housing creation grant program has helped add several hundred quality
rental housing units to the downtown area over the past decade, including the
Washington Neighborhood and Historic Millwork areas.
DISCUSSION
A project at 1501 Jackson Street began review in September 2015, with a Development
Agreement eventually signed May 2, 2016 for the redevelopment of the old school
building at St. Mary's campus into 12 apartments. The incentives committed were
$120,000 for the 12 housing units from CIP 3602438 and $35,000 for facade, planning
& design, and financial consultant costs from CIP 2411942.
A project at 2062 White Street was approved in a memo dated August 18, 2016,
wherein grants were committed in the amounts of $60,000 for the 6 housing units under
CIP 3602438 and $10,000 was committed for facade improvements from CIP 3602436.
Unfortunately, due to process error in our department the commitments for the housing
units were not encumbered in our finance system at the time of the written commitment.
The result is that we inadvertently over -committed $180,000 between May 2016 and
present.
When this over -commitment came to our attention, we reviewed our accounts and
commitments, to make sure there were no other instances of this oversight. We believe
we have all current written commitments accounted for in the finance system, barring
the $180,000 mentioned here.
In addition, we have reviewed our processes and made modifications in order to avoid
future mistakes of this nature. Each approval of financial commitments will be entered
into Finance Plus, with review by at least one other department staff for conformance to
the letter of approval, to make sure no commitments have been missed.
RECOMMENDATION/ ACTION STEP
I am requesting that after review of the City's current cash position, the Budget Director
and City Manager provide enough funding to cover our written commitments, in the
amount of $180,000.
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Downtown Housing Creation Project Funding
DATE: September 11, 2017
Dubuque
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2007 • 2012 • 2013 • 2017
INTRODUCTION
The purpose of this memo is to request approval of a funding source for completed
projects approved for downtown housing creation grants.
BACKGROUND
The City approved development agreements in 2016 for two housing projects, 1501
Jackson Street and 2062 White Street. The project at 1501 Jackson Street has 12
housing units with a housing creation incentive of $120,000 and the project at 2062
White Street has 6 housing units with a housing creation incentive of $60,000. The
Economic Development Department inadvertently did not encumber in the financial
system the total housing creation incentive of $180,000 for both projects, which resulted
in the Economic Development program funds being over -committed.
DISCUSSION
After review of Tax Increment Financing cash flows with Independent Public Advisors,
the City's financial advisor, it has been determined that there are sufficient funds in the
Greater Downtown TIF District to fund the $180,000 in housing creation incentives for
the two completed downtown housing projects. After paying the $180,000 in housing
creation incentives, the Greater Downtown TIF District will have an estimated available
balance of $251,475.
RECOMMENDATION
am recommending the approval of funding the $180,000 in housing creation incentives
from the cash balance available in the Greater Downtown TIF District.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director