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2 2 09 City Council Proceedings Official_Special CITY OF DUBUQUE, IOWA CITY COUNCIL PROCEEDINGS OFFICIAL The Dubuque City Council met in special session at 5:00 p.m. on February 2, 2009 in the Historic Federal Building. Present: Mayor Buol, Council Members Braig, Connors, Jones, Lynch, Resnick, Voetberg, City Manager Van Milligen, City Attorney Lindahl Mayor Buol read the call and stated that this was a special meeting of the City Council called for the purpose of discussing the Historic Millwork District Master Plan. Assistant Economic Development Director Aaron DeJong introduced Andrew Dresdner of Cuningham Group, Chris Brewer of Economic Research Associates, and mentioned architect Jeff Morton, who was not present. DeJong stated that the Millwork District Master Plan process began in May 2008 with the hiring of Cuningham Group. Public input sessions were held in June and October 2008. This work session is the third in a series of input sessions. Dresdner reviewed the vision for the project and the process for the work session. Chris Brewer gave a slide presentation, which highlighted the following: ? Market Approach ? Financial Analysis ? Market Findings ? Warehouse District Case Studies ? Sustainable District Models ? Challenges: Surrounding infrastructure, parking, internal infrastructure, retrofitting old buildings, industrial past/present ? Strengths: Existing buildings, access to Downtown and the Port of Dubuque, active arts community, sense of place, untapped downtown residential market, healthy public-private partnerships ? Context: local and state, regional ? Connections: neighborhoods, downtown, Port of Dubuque ? Phase 1 Detail th private/public investment: Foundry Square, 10 Street, creative o interpretations of history, industrial aesthetics, Plaza Street, modern upgrades, Jackson Street ? Phase 1b Realignments and Improvements, Landform Park o ? Phase 2: South th private/public investment: Wilmac, Kirby, Farley-Loetscher, 7 Street (Kirby- o Farley Square), Iowa Street parking ramps ? Phase 3: North – Overall ? Financial Analysis Approach evaluate financial implications of Phase I o model is built around basic assumptions o ? Key Financial Assumptions One ownership entity o Focus on Phase I Program o Project renovation budget of $45 million ($120/sq. ft.) o Total infrastructure investment of $7 million o ? Financial Implications Federal/State Historic Tax Credits o Assumes 3-year absorption for rental units and commercial space o Rent and cost growth of 3% o Success is tied to related public improvements (parking critical) o ? Fiscal Considerations Base-year assessed value of $5.77/sq. ft. o Renovated inventory of 401,800 sq. ft. o Renovated value starting at $40/sq. ft. o Current property tax rates, held constant o Analysis Implications – TIF o City has committed $4.8 million through 2013 o ? Risk Factors Availability of State Historic Tax Credits o Timing of renovation in relation to timing of IBM expansion o Apartment rental rates drive absorption o Office elements may need to be delayed o Retail success related to larger credit-worthy anchor tenants o Council discussion included linking parking to facilities, timing with IBM expansion, securing developer financing, sustainability, economic viability, practicality, and multi- age appeal for living facilities. There being no further business, upon motion the City Council adjourned at 6:11 p.m. /s/Jeanne F. Schneider, CMC City Clerk