Applewood Apartments - Application for Tax CreditsTHE CITY OF
DAB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Applewood Apartments Application for Tax Credits
DATE: March 11, 2009
Dubuque
All-America City
2007
Housing and Community Development Department Director David Harris recommends
City Council endorsement of an application from Horizon Development to the Iowa
Finance Authority for low-income housing tax credits for Applewood Apartments Phase
III on Pennsylvania Avenue.
concur with the recommendation and respectfully request Mayor and City Council
approval.
!r r •,l ! Ii / ~, tIr r.
Michael C. Van Milligen ~.-/ ~'J-~ }
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
1
THE CITY OF Dubuque
DUB E a~
1 1
Masterpiece on the Mississippi
2007
TO: Michael Van ~~gen, City Manager
FROM: David ~~ris, Housing and Community Development Department
SUBJECT: Applewood Apartments application for Tax Credits
DATE: 11 March 09
Introduction
The purpose of this application is to request the City's Council's endorsement of an
application from Horizon Development to the Iowa Finance Authority (IFA) for low-
income housing tax credits, for Applewood Apartments Phase III on Pennsylvania
Avenue.
Discussion
Horizon proposes to build a third apartment complex, athree-story building with 43
units, for seniors. This will be funded through IFA's tax credit program, as were the first
two Applewood buildings. IFA makes awards through a competitive application
process, allowing a developer to raise project equity through sale of the tax credits to
investors. In turn, IFA requires the apartments to remain affordable to households
earning less than 60% of area median income, at specified rents, for 15 or more years.
Municipalities are given the opportunity to comment on development proposals. If a city
endorses a project, additional points are scored on the application. Cities are not
required to comment.
As we are unaware of other developer proposals in the current funding cycle, it is not
necessary to indicate preference for Horizon's application relative to other projects.
The developer is not requesting any other form of assistance for Applewood III.
1
Horizon Development Group, Inc. is proposing a third phase to our Applewood Senior Apartment development
___ __
located on Pennsylvania Avenue and we need a letter from the City of Dubuque for our financing application
with Iowa Finance Authority. The specifics and a sample of this letter is explained in the attached document.
For background information below is a quick summary of our proposed development:
Applewood III will consist of a 3-story, 43-unit senior apartment community with a heated underground parking
garage, club room, beauty salon, exercise room, and a business center. The 1.7 acre site is located adjacent to
the already successful Applewood I & II apartments on Pennsylvania Avenue in the City of Dubuque.
Applewood III will consist of one and two bedroom units ranging in size from approximately 675 square feet to
1,070 square feet. The apartment rents will range from $410 per month to $710 per month, respectively. Unit
amenities will include carpeting, kitchen appliances, window blinds, patio and/or balcony, urgency pull cords, an
assortment of tub/shower units or shower only units, and washer/dryer hookup in each unit.
I am hoping that this letter can be done at the staff level since there are no other competing developments in
the City of Dubuque that I am aware of. Please let me know what staff person t should be talking with to
facilitate this letter. If possible I would like to receive a copy of this letter by the end of this week (sorry for the
short notice). Please let me know if you have any questions or if I can help in any way. Thank you for your
consideration.
Daniel D. Fitzgerald
Business Development -Principal
HORIZON Design Build Manage
1031 North Edge Trail, Verona, WI 53593
E-mail: d.fitz~erald@horizondbm.com ~ Website: www.horizondbm.com
Office: (608) 845-9925 ~ Cell: (608) 219-5282 ~ Fax: (608) 848-4501
THE CITY OF i~-
Office of the Mayor and City Council
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
www.cityofdubuque.org
~~
11 March 09
Dave Vaske
Tax Credit Manager
Iowa Finance Authority
2015 Grand Avenue
Des Moines IA 50312
Dear IFA Staff and Board;
The City of Dubuque wishes to offer its
(city name here)
support for The Applewood III Senior Housing Apartments Protect located at
(project name here)
Pennsylvania Avenue in Dubuque
(project street address) (city)
Our city has a preference for this low income housing tax credit project over other tax
credit projects proposed in our city because of the following reasons:
Not Applicable
Sincerely,
,~''~
Roy BUOI, Mayor
City of Dubuque
Service People Inteo ity Responsibility Innovation Teamwork