Financial Assistance Pool Amendment to RFPTHE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amending the RFP for the Financial Assistance Pool Established to
Encourage Residential Housing in Dubuque
DATE: December 2, 2009
On November 16, 2009, the City Council approved issuing a Request for Proposal
(RFP) to encourage new residential housing units- in downtown Dubuque.
Based on feedback from several developers, two changes are being proposed to make
this incentive program available to additional properties. The two changes are:
• The minimum in the creation of more than ten new housing units be eliminated.
No more than 85% of the project units may have the 80% of median income or
below restriction.
Economic Development Director Dave Heiar recommends City Council approval of an
amendment to the RFP requirements to make additional properties eligible for the pool
of funds to encourage developers and property owners to create new residential units in
the Greater Downtown Urban Renewal District.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director ~ -..
SUBJECT: Amending the RFP for the Financial Assistance Pool established to
encourage residential housing in downtown
DATE: November 30, 2009
INTRODUCTION
This memo is to amend certain requirements for projects seeking assistance through
the pool of funds in the amount of $2.5 million to encourage new residential housing
units in downtown Dubuque.
BACKGROUND
On November , 2009, the City Council approved Resolution 444-09 to release a
Request For Proposal (RFP) to encourage new residential housing units in downtown
Dubuque. Since then, City Staff had a meeting and received input about the RFP and
its requirements. Several projects were not able to meet the requirements outlined in
the proposal.
DISCUSSION
Based on feedback from several developers, two changes are being proposed to make
this incentive program available to additional properties. The two changes are as
follows:
• The minimum in the creation of more than ten (10) new housing units be
eliminated.
• No more than 85% of the project units may have the 80% of median income or
below restriction.
All other elements of the RFP would remain the same. A red line version of the RFP is
attached.
Proposals will still be due at Noon on December 21, 2009. Staff will review the
proposals and discuss them with the City Manager. The City reserves the right to reject
any and all proposals and to negotiate changes with any applicant. The City Manager
will then provide a recommendation to the City Council.
RECOMMENDATION/ACTION STEP
I recommend that the City Council approve an amendment to the RFP requirements to
make additional properties eligible for the pool of funds to encourage developers and
property owners to create new residential units in the Greater Downtown Urban
Renewal District.
F:\USERS\Econ Dev\Downtown Housing\20091130 Amendment #1 memo Downtown Housing RFP.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 13'h Street, Dubuque IA 52001 563 589-4121
RESOLUTION NO. 452-09
APPROVING AN AMENDMENT TO THE REQUEST FOR PROPOSALS TO
ENCOURAGE MARKET-RATE DOWNTOWN RENTAL AND OWNER-OCCUPIED
RESIDENTIAL UNITS IN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT
Whereas, the City of I?ubuque has been successful in encouraging job creation and
retention in the community for several years; and
Whereas, many of the City of Dubuque's new residents have a strong desire to live
near work and entertainment; and
Whereas, a significant shortage of quality market-rate rental and owner-occupied
residential units exists and efforts are needed to encourage new development of such
units; and
Whereas, several downtown residential development projects need financial
assistance to secure funding for such project; and
Whereas, the Request for Proposals approved by Resolution 444-09 requires
certain changes to the minimum requirements of eligible projects.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City Council approves eliminating the requirement that ten (10)
new housing units be created by the project.
Section 2. The City Council approves that no more than 85% of the project units
may have the 80% of median income or below restriction.
Section 3. That the City Manager is hereby authorized and directed to distribute
the revised Request for Proposal to interested parties.
Passed, approved and adopted this 7t" day of December, 2
Roy D. Buol, Mayor
Attest:
eanne F. Schneider, City Clerk
F:\USERS\Econ Dev\Downtown Housing\20091130 Amendment #1 reso Downtown Housing RFP.docx
CITY OF DUBUQUE, IOWA
December 7, 2009
REQUEST FOR PROPOSALS
Assistance to Encourage Market-Rate Downtown Rental and Owner-Occupied
Residential Units - $2.5 million estimated to be available.
INTRODUCTION
The City of Dubuque, Iowa is soliciting proposals from developers and property owners to
expand the availability of market-rate downtown rental and owner-occupied residential
units.
HISTORY/BACKGROUND
Recent job creation projects within the City of Dubuque have caused a significant demand
for downtown living options from new residents preferring to live near work and
entertainment opportunities. Recent economic study of housing in the City of Dubuque has
shown unmet demand for this housing type.
The City of Dubuque has established a pool of funds to be made available to complete
financing packages for the immediate creation of market-rate downtown rental and owner-
occupied residential units within the Greater Downtown Urban Renewal District. (See
attached map for boundaries) Market-rate residential units include rental units which are
not income restricted or rental units that are restricted to 80% of median income and less
for no more than five years (units must not be restricted to 60% of median income or less,
or any other restriction under 80%) and owner occupied units. Eighty percent of median
income level as determined by the Department of Housing and Urban Development (HUD),
is currently at $35,000 for a single person, $40,000 for two and $45,000 for three.
PROJECT REQUIREMENTS
Projects eligible to receive assistance from this newly established pool of funds must meet
the following requirements:
The project must assist in the creation of new market-rate downtown rental and owner-
occupied residential units within the Greater Downtown Urban Renewal District.
• The project must be the rehabilitation of an existing structure.
• The project must assist in the creation of ^~^~° *"°^ «°^ ~'' ^` new residential units.
• The project must be under construction by March 1, 2010, with 25% of the project
completed by July 1, 2010.
• The units created must be completed and ready for occupancy by December 31,
2010.
• No more than $10,000 per residential unit in assistance will be considered.
• No more than $750,000 will be provided to a single project.
• No more than X85% of the project units may have the 80% of median income or
below restriction.
Public Assistance to Encourage Downtown Rental Housing
Page 2
Project units may not have a restriction of 60% of median income and below.
The City will disperse no funds for the benefit of the project prior to all financing
being committed and at least 25% of the construction being completed.
No developer fee will be permitted until all city assistance is paid or satisfied in full.
The assistance requested need not be directly used for housing unit creation. However,
the project must be a required component related to housing unit creation (i.e. parking).
STRUCTURE OF ASSISTANCE
The assistance available through the fund may take several different forms, including but
not limited to:
• Low-Interest Loans
• Forgivable Loans
• Grants
• Loan Guarantees
• Equity contribution
The proposal may also include a description of the need for any other assistance or
cooperation from the City, such as the use of tax increment financing.
SELECTION CRITERIA
City staff selected by the City Manager will be charged with evaluating the proposals with
the ultimate task to select projects which create new market-rate rental and owner-
occupied residential units in the Greater Downtown Urban Renewal District at the lowest
per unit cost to the fund. Per unit cost to the fund will be calculated based upon the
structure of the assistance required for the project. One of the City's goals is to leverage
the most private investment with the least public assistance. The City Manager will make a
recommendation to the City Council and the City Council will make the final awards. The
terms of the award and the City's obligation to provide financial assistance to a project will
be set forth in a development or loan agreement between the City and successful
applicant.
PROPOSAL REQUIREMENTS
Applicants must complete the attached application. A ten-year detailed financial proforma
is required to accompany the application. The proforma should include project revenues
and expenses by category and a listing of all planned sources of financing to complete the
project.
SUBMISSION REQUIREMENTS
A fully completed application with attachments and exhibits must be received in the office
of the City of Dubuque Economic Development Department, 50 W. 13t" Street, Dubuque,
Iowa 52001 by 12:00 p.m. CDT Monday, December 21, 2009.
Public Assistance to Encourage Downtown Rental Housing
Page 3
Proposals should be addressed to David Heiar, Economic Development Director, at the
above address. Questions can be directed to David HeiarorAaron DeJong bytelephone at
(563) 589-4393, by fax at (563) 589-1733, or by email at dheiar _cityofdubuque.orq or
adejong(a~cityofdubugue.org.
Each applicant assumes full responsibility for delivery and deposit of the completed
proposal package on or before the deadline. The City of Dubuque is not responsible for
any loss or delay with respect to delivery of the proposals. Some of the proposed funding
for this incentive program has been committed as local match for federal grant
applications. If any of these federal grants are approved, the pool of funds available
for this incentive program will be reduced accordingly. The City of Dubuque
reserves the right to reject any and all proposals and to negotiate changes with any
applicant. The City of Dubuque is not liable for any cost incurred by any applicant prior to
the execution of an agreement or contract. Nor shall the City of Dubuque be liable for any
costs incurred by the applicant that are not specified in any contract. The City of Dubuque
is an Equal Employment Opportunity Employer.
Applicants may be invited to an interview to discuss their project in greater detail.
F:\USERS\Econ Dev\Downtown Housing\20091116 Downtown Housing RFP_750,000.docx