I-Jobs Affordable Housing Assistance Grant_Gronen/CaradcoTHE CITY OF ~,. Dubuque
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Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: I-Jobs Affordable Housing Assistance Grant for Gronen Restoration
DATE: October 14, 2009
Economic Development Director Dave Heiar recommends City Council approval of an
I-Jobs Affordable Housing Assistance Grant Application to the Iowa Finance Authority
on behalf of Gronen Restoration. This grant will be used for the redevelopment of the
former CARADCO building mixed-use project, which is expected to create 72 residential
housing units in the Millwork District. The City would be the sponsor of the application;
however, the City is not required to provide local match as part of this application.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CTTY OF
DUB E
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
Dubuque
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FROM: David J. Heiar, Economic Development Director
SUBJECT: I-Jobs Affordable Housing Assistance Grant for Gronen Restoration
DATE: October 13, 2009
INTRODUCTION
This memorandum presents for City Council approval an I-Jobs Affordable Housing
Assistance Grant Application to the Iowa Finance Authority (IFA) on behalf of Gronen
Restoration. The City Council is requested to adopt a resolution approving the
application.
BACKGROUND
Recently, the State of Iowa established the I-Jobs program which is a state stimulus
package to advance construction projects within the state. IFA has received funding to
provide grants for housing for certain elderly, disabled, and low-income persons and
public servants in professions meeting critical skill shortages in the state, to assist
communities in providing safe and affordable housing for the general welfare and
security of the citizens of the state.
After discussions with IFA, the developer of the CARADCO project was encouraged to
make application for assistance through this grant program.
The application requests a $3,000,000 grant for the complete rehabilitation of the
CARADCO Building-Main Plant, which will be a $24,000,000 project. The completed
building is only one part of a planned, three-phase $200,000,000 Millwork District
redevelopment initiative, as designated and prioritized by Dubuque's City Council. The
completed buildings will provide mixed-use space, adding hundreds of desperately-
needed urban residential units for Dubuque's current and incoming workforce (including
1,300 employees due to IBM's new operations center in Dubuque's downtown, located
just blocks from the District), as well as 1St floor commercial/retail space intended to
serve the wants and needs of the district's residents.
The new construction of 72 residential units within the rehabbed CARADCO Building
will house residents at 80% AMI or below in 60 of the 72 units. According to information
provided by IBM, approximately half of IBM's workforce will income-qualify. Dubuque's
urgent need for housing (current 700 unit deficit according to GDDC study) calls for all
community members to "do their part". Gronen Restoration will alleviate 10% of this
deficit through the successful completion - in a timely manner (by late 2010 for
residential portion and early 2011 for commercial space) - of the entire CARADCO
project.
DISCUSSION
Attached to this memorandum is a resolution that provides for the approval of the
application for an I-Jobs Affordable Housing Assistance Grant Application to the Iowa
Finance Authority (IFA) on behalf of Gronen Restoration. The resolution authorizes the
City to sponsor the application. Although the City is required to be the applicant, the City
is not required to provide local match as part of this application.
Gronen Restoration has estimated a capital investment of $24 million to complete the
mixed use project which is expected to create 72 residential housing units in the
Millwork District. This would be the first major project in the district since the Council
adopted the Master Plan for this area.
RECOMMENDATION
I recommend that the City Council approve the proposed application for Gronen
Restoration by adopting the attached resolution. This application will provide State of
Iowa financial benefits to a local housing developer making a substantial investment in
our downtown. There is no commitment within this application of any further City
assistance.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
Attachments
cc: Laura Carstens, Planning Services Manager
Cori Burbach, Sustainability Coordinator
F:\USERS\Econ Dev\CARADCO\IFA I_Jobs\20091013lFA Gronen Council Memo.docx
Prepared by: David Heiar, Economic Dev Director, 50 West 13th Street, Dubuque IA 52001 563 589-4393
Return to: Jeanne Schneider, City Clerk, 50 West 13th Street, Dubuque IA 52001 563 589-4121
RESOLUTION NO. 405-09
RESOLUTION APPROVING A I-JOBS AFFORDABLE HOUSING ASSISTANCE GRANT
APPLICATION TO THE IOWA FINANCE AUTHORITY, ON BEHALF OF GRONEN
RESTORATION
Whereas, the State of Iowa has established a Housing Assistance Grant Program to
assist in the development of housing in the State of Iowa; and
Whereas, the developer of the former CARADCO building has been encouraged to
make an application for the grant program; and
Whereas, the CARADCO redevelopment project will provide much needed
residential development to the downtown area; and
Whereas, the City Council finds that the proposed application is acceptable and
necessary to the growth and development of the city.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque agrees to sponsor the Affordable Housing
Assistance Grant Application to the Iowa Finance Authority on behalf
of Gronen Restoration.
Section 2. That the Mayor is hereby authorized and directed to execute this
Resolution and application on behalf of the City of Dubuque and
forward the executed copy to the Iowa Finance Authority.
Passed, approved and adopted this 19t" day of October, 2009.
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Roy D. Buol, Mayor
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eanne F. Schneider, City Clerk
F:\USERS\Econ Dev\CARADCO\IFA I_Jobs\20091019 IFAGronen App Reso.docx