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Millworking Warehouse District AgreementTHE 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: Millworking Warehouse District Agreement DATE: January 14, 2009 Assistant City Manager Cindy Steinhauser is recommending that the City enter into an Agreement with Dubuque Main Street for hiring of a Resource Development Director for the Millworking Warehouse District. In 2007, the Mayor and City Council adopted the Millworking Warehouse District Revitalization Strategy. Included in the strategy was adaptive reuse of nearly 1 million square fee of vacant warehouse space into a 24/7 mixed use district that includes retail, entertainment, office, commercial and housing uses. Since that time, City staff has been working in partnership with the Millworking Warehouse District steering committee, including the four major property owners in the District, to implement this vision. Included in our efforts has been the participation in the master planning process; the pursuance of the redevelopment of this district as a national model for sustainability and historic preservation; and developing alternative funding sources for redevelopment of the district including State Historic Tax Credits, New Market Tax Credits and Energy Credits and Rebates. Key to these efforts has been the research and coalition building efforts of Jill Connors, who is currently working as a temporary employee of Gronen Restoration/Gronen Properties (GR/GP). In August 2008, Jill was hired by GR/GP. Since that time, Jill's work has expanded to include development and coordination of a Historic Tax Credit coalition to promote the expansion of State Historic Tax Credit: coordination of warehouse district tours for private developers, and local state officials; conducting research and analysis on State and Federal historic tax credits for use in the warehouse district; providing information to City staff and warehouse district property owners on issues related to state and federal historic tax credits; conducting research on the use of New Market Tax Credits (NMTC), including the creating of community development entities; and conducting research and analysis on the use of energy credits. Agreement to create a partnership between the City, Main Street, Dubuque Initiatives and the four major property owners in the Millworking Warehouse District will fund this position as an employee of the Dubuque Main Street. Some of the proposed partners have not yet decided to participate but most have committed. While the City contribution of $25,000 per year would not begin until July 1, 2009 the arrangement would begin effective February 1, 2009. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager THE CITY OF DUBUQUE Masterpiece on the Mississippi Dubuque All-American City 2007 TO: Michael C. Van Milligen, City Manager FROM: Cindy Steinhauser, Assistant City Manager SUBJECT: Millworking Warehouse District Agreement DATE: January 12, 2009 Introduction The purpose of this memorandum is to request City Council approval of an Agreement with Dubuque Main Street for the hiring of a Resource Development Director for the Millworking Warehouse District. Discussion In 2007, the Mayor and City Council adopted the Millworking Warehouse District Revitalization Strategy. Included in the strategy was adaptive reuse of nearly 1 million square feet of vacant warehouse space into a 24/7 mixed-use district that includes retail, entertainment, office, commercial and housing uses. Since that time, city staff has been working in partnership with the Millworking Warehouse District steering committee, including the four major property owners in the District, to implement this vision. Included in our efforts has been the participation in the master planning process; the pursuance of the redevelopment of this district as a national model for sustainability and historic preservation; and developing alternative funding sources for redevelopment of the district including State Historic Tax Credits, New Market Tax Credits and Energy Credits and Rebates. Key to these efforts has been the research and coalition building efforts of Jill Connors, who is currently working as a temporary employee of Gronen Restoration/Gronen Properties (GR/GP). In August 2008, Jill was hired by GR/GP to provide administrative support and research for State Historic Tax Credits for GR/GP. Since that time, Jill's work has expanded to include development and coordination of a Historic Tax Credit coalition to promote the expansion of State Historic Tax Credit; coordination of warehouse district tours for private developers, and local and state officials; conducting research and analysis on State and Federal historic tax credits for use in the warehouse district; providing information to city staff and warehouse district property owners on issues related to state and federal historic tax credits; conducting research on the use of New Market Tax Credits (NMTC), including the creating of community development entities; and conducting research and analysis on the use of energy credits. The city of Dubuque, Dubuque Main Street and the Warehouse District Property owners have benefitted from this research and coalition building and anticipate that these credits will help to provide important gap financing for the redevelopment of the Millworking Warehouse District. The purpose of this memorandum is to request City Council approval for the city of Dubuque to share in the cost to continue this important work. Attached is a proposed Agreement that creates a voluntary partnership between the city of Dubuque, Dubuque Main Street and the four major warehouse property owners in order to achieve common goals related to the restoration and redevelopment of the Historic Millworking Warehouse District. Included in the Agreement are the responsibilities of Dubuque Main Street, the responsibilities of the Resource Development Director (who will become a part-time employee of Dubuque Main Street) and the Financial Contributions from each of the parties identified in the Agreement. City staff is continuing to visit with all parties and to date has obtained financial commitments and approval for this Agreement from Dubuque Main Street, Dubuque Initiatives and GR/GP. City staff is recommending approval for the city to become party to this Agreement. The initial term of this Agreement will be from February 1, 2009 to June 30, 2009 and then run from July 1 to June 30 each year there after. The city has $25,000 budgeted as a reoccurring expense beginning fiscal year 2009 for this activity. Request The requested action is for City Council to approve the attached Agreement. 2 AGREEMENT BY AND AMONG THE CITY OF DUBUQUE, IOWA DUBUQUE MAIN STREET, DUBUQUE INITIATIVES, GRONEN RESTORATION, FISCHER COMPANIES, WILMAC PROPERTIES AND SUSTAINABLE NEIGHBORHOOD BUILDERS, INC. This Agreement (the Agreement) dated for reference purposes the day of 2009, is entered into by and among the City of Dubuque, Iowa (City), Dubuque Main Street (DMS), Dubuque Initiatives (Initiatives), Gronen Restoration (Gronen), Fischer Companies (Fischer), Wilmac Properties (Wilmac) and Sustainable Neighborhood Builders, Inc. (SNB). Whereas, it is the intent of the parties to this Agreement is to create a voluntary partnership of the parties in order to achieve common goals related to the restoration and redevelopment of the Historic Millworking Warehouse District, specifically, to: 1) Coordinate and collaborate predevelopment work necessary for the redevelopment of the Historic Millworking Warehouse District; 2) Undertake grant and foundation research for implementation in the Historic Millworking Warehouse District; 3) Research and implement the use of state and federal historic tax credits for use in the Downtown and Historic Millworking Warehouse District; 4) Research and implement the creation of a local community development entity to pursue and distribute New Market Tax Credits for use in the city of Dubuque; and 5) Research and implement the use of energy credits and rebates for implementation of sustainable initiatives in the Historic Millworking Warehouse District. NOW, THEREFORE, IT IS AGREED BY AND AMONG THE PARTIES AS FOLLOWS: SECTION 1. TERM. This Agreement shall commence on the day of 2009, and shall continue until terminated by all of the parties. Any party may withdraw from this Agreement by giving thirty days written notice to all of the other parties. Upon receipt of a notice of withdrawal, the remaining parties shall determine whether to terminate the Agreement. SECTION 2. RESPONSIBILITIES OF DMS. DMS agrees to provide the following services: 1) Serve as administrator of funding for the costs associated with this Agreement. 2) Hire apart-time (20 hours per week) Resource Development Director whose sole responsibility will be to implement the Vision and Mission as detailed in this Agreement. 3) Prepare and annual budget for costs associated with the position of Resource Development Director SECTION 4. RESOURCE DEVELOPMENT DIRECTOR. The Resource Development Director shall: 1) Serve as coordinator, liaison and record keeper for weekly meetings with representatives and developers from across the State of Iowa. 2) Assist in coordination of warehouse/downtown district tours for private developers, and local and state officials. 3) Coordinate and participate in state and federal historic tax credit meetings and presentations. 4) Conduct comprehensive research and analysis, on state and federal historic tax credits for development of local and state strategy. 5) Provide the support staff role for local representatives meeting with officials on state and federal historic tax credits. 6) Provide the support staff role for warehouse district property owners on issues related to state and federal historic tax credits. 7) Conduct comprehensive research and analysis on the use of New Market Tax Credits (NMTC), including the creating of community development entities, for development of a local and federal strategy. 8) Conduct comprehensive research and analysis on the use of energy credits; 9) Provide the support staff role for local representatives meeting with public and private officials regarding NMTC. 10) Provide and coordinate the support staff role for discussions with NMTC purchasers and potential investors. 2 SECTION 5. FINANCIAL CONTRIBUTIONS. City, Initiatives, Gronen, Fischer, Wilmac and SNB agree to provide annual financial support for the Resource Development Director and associated costs as submitted annually by DMS as follows: City $25,000 Initiatives $ 5,000 Gronen $ 2,500 Fischer $ 2,500 Wilmac $ 2,500 SNB $ 2,500 SECTION 6. VOLUNTARY COMMITMENT. This Agreement is an entirely voluntary commitment among the parties hereto to cooperate and collaborate to achieve the vision and mission articulated herein. This Agreement in no way obligates or restricts the activities of any party hereto in any way except as set forth herein. No party hereto may obligate, or purport to obligate, any other party with respect to any matter. CITY OF DUBUQUE By: Signature Date Print Name DUBUQUE INITIATIVES By: Signature Date Print Name DUBUQUE MAIN STREET By: Signatuer Date Print Name GRONEN RESTORATION By: Signature Print Name FISCHER COMPANIES By: Signature Print Name WILMAC PROPERTIES By: Signature Print Name SUSTAINABLE NEIGHBORHOOD BUILDERS By: Signature Print Name Date Date Date Date 4 F:\USERS\tsteckle\Lindahl\Warehouse DistrictWgreement_010809.doc