Brewing & Malting Redevelopment Project Workforce Housing Tax Credits Support Copyrighted
April 16, 2018
City of Dubuque Action Items # 1.
ITEM TITLE: Brewing & Malting Redevelopment Project Workforce
Housing Tax Credits Application - Resolution of Support
SUMMARY: City Manager recommending approval of a Resolution of
Support for the Brewing & Malting Redevelopment Project
at 3000-3040 Jackson Street for an Application to the lowa
Economic Development Authority for Workforce Housing
Tax Credits.
RESOLUTION Of Support for an Application for Workforce
Housing Tax Credits for the Project at 3000-3040 Jackson
Street
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Brewing & Malting Redevelopment Project Resolution of City Manager Memo
Support-NNM Memo
Staff Memo Staff Memo
Resolution of Support Resolutions
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Support for the Brewing & Malting Redevelopment Project at
3000-3040 Jackson Street for an Application to the lowa Economic
Development Authority for Workforce Housing Tax Credits
DATE: April 3, 2018
Economic Development Director Maurice Jones recommends City Council approval of a
Resolution of Support for the Brewing & Malting Redevelopment Project at 3000-3040
Jackson Street for an Application to the lowa Economic Development Authority for
Workforce Housing Tax Credits.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF .� 5o West 13�^Street
AIFMersality Dubuque,lowa 52001-4864
D� L E � � ��� � � Office(563)589-4393
TTY(563)690-6678
http://www.cityofd u buq ue.org
2007•2012
Masterpiece on the Mississippi �,3.Zo„
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Resolution of Support for the Brewing & Malting Redevelopment
Project at 3000-3040 Jackson Street for an Application to the lowa
Economic Development Authority for Workforce Housing Tax Credits
DATE: April 3, 2018
INTRODUCTION
This memorandum requests a Resolution of Support for the Brewing & Malting
Redevelopment project for the purpose of strengthening the projecYs application to the
lowa Economic Development Authority for Workforce Housing Tax Credits.
BACKGROUND
Stephen Emerson, the developer, through his company, 3000 Jackson LC. is planning
the redevelopment of the Brewing & Malting building at 30000-3040 Jackson Street. In
preparation for the Development Agreement, 3000 Jackson LC. has applied for
Workforce Housing Tax Credits through the lowa Economic Development Authority.
This program provides tax benefits to developers to provide housing in lowa
communities, focusing especially on those projects using abandoned, empty or
dilapidated properties.
• Total program benefits limited to $1 million per project
• The tax incentives include a refund of sales, service or use taxes paid during
construction
• Developers may receive a state investment tax credit of up to 10°k of the
investment directly related to the construction or rehabilitation of the housing.
Developers qualifying under the Small Cities set aside of this program may
receive an investment tax credit of up to 20°k of the investment directly related to
the construction or rehabilitation of the housing. The state investment tax credit is
fully transferable.
• Federal, state or local grants, tax credits, forgivable loans or other assistance not
requiring repayment cannot be included for the purposes of calculating new
investment
• The tax credit is based on the new investment used for the first $150,000 of
value for each home or unit
• This tax credit is earned when the home or unit is certified for occupancy and can
be carried forward for up to five additional years or until depleted, whichever
occurs first
DISCUSSION
In order to fully fund the project, 3000 Jackson LC has applied to the lowa Economic
Development Authority for Workforce Housing Tax Credits. The developer's application
would be strengthened by a resolution of support from the City of Dubuque.
The City Council has prioritized the redevelopment of the Greater powntown Urban
Renewal Area, the creation of downtown housing, and the remediation of dilapidated
buildings. The redevelopment of the Brewing & Malting Buildings will meet these goals
by providing over 80 market rate rental residential units in the North End of the
downtown, stabilizing and improving the appearance of the currently vacant buildings.
Staff have been negotiating a Development Agreement with 3000 Jackson LC and
recommend showing the City's support for the project in the form of the attached
resolution.
RECOMMENDATION/ ACTION STEP
I respectfully request City Council approval of the attached resolution in order to
advance the ongoing work toward a Development Agreement for the redevelopment of
the Brewing & Malting Buildings.
Prepared by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 115-18
RESOLUTION OF SUPPORT FOR AN APPLICATION FOR WORKFORCE HOUSING
TAX CREDITS FOR THE PROJECT AT 3000-3040 JACKSON STREET
WHEREAS, the City Council of Dubuque, Iowa has prioritized the redevelopment of
the Greater Downtown Urban Renewal Area, creation of downtown housing, and the
remediation of dilapidated buildings; and
WHEREAS, the property at 3000-3040 Jackson Street (the Property) is located in
the Greater Downtown Urban Renewal Area and has received multiple notices and
municipal infractions for unsafe building conditions since 2008; and
WHEREAS, in 2016, 3000 Jackson LC (Developer) purchased the Property with the
intention of improving the Property to create a mixed-use development including downtown
housing; and
WHEREAS, the City Council finds that the redevelopment of the Property is in the
best interests of the city and its residents; and
WHEREAS, the submittal of a Workforce Housing Tax Credit application will provide
assistance to the Developer for much needed residential development; and
WHEREAS, the City Council desires to express support for the Developer's project
to secure Workforce Housing Tax Credits through the Iowa Economic Development
Authority; and
WHEREAS, City participation in the form of Tax Increment Financing will provide the
requisite local match to secure the Workforce Housing Tax Credits by providing a 10 -year,
100% reimbursement of new property taxes estimated at $1.82 million over the 10 -year
period;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City Manager is authorized and directed to negotiate the terms
and conditions of a Development Agreement with 3000 Jackson LC
for the redevelopment of the Property.
Section 2. The City Manager is directed to present such Development
Agreement to the City Council for consideration, no later than June
18, 2018.
Section 3. The City Council of the City of Dubuque does hereby express its
support for the adaptive reuse of the Property a proposed by the
Developer, and the City Manager is hereby authorized and directed to
do all things necessary to effectuate this Resolution as required by
Iowa law and to provide such reasonable assurances to the
Developer and the Iowa Economic Development Authority considered
necessary or appropriate by the City Manager under the
circumstances to meet the threshold support and local match
requirements of the Workforce Housing Tax Credit program.
Section 4. That the Mayor is hereby authorized and directed to execute this
Resolution on behalf of the City of Dubuque.
Passed, approved and adopted this 16th day of April 2018.
Attest:
Kevin' . F rnstahl,`CitiGlerk
d T. Resnick, ayor Pro -Tem