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2019 Washington Neighborhood Market Analysis Update Copyrighted September 16, 2019 City of Dubuque Consent Items # 6. ITEM TITLE: 2019 Washington Neighborhood MarketAnalysis Update SUMMARY: City Manager transmitting the 2019 Washington Neighborhood MarketAnalysis Update. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type 2019 Washington Neighborhood MarketAnalysis City Manager Memo Update-MVM Memo Staff Memo Staff Memo Washington Neighborhood MarketAnalysis Final Supporting Documentation 08/27/2019 Dubuque THE CITY OF � uI�AaMca cih DuB E � � I � � I Maste iece on the Mississi i Zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: 2019 Washington Neighborhood Market Analysis Update DATE: September 9, 2019 Planning Services Manager Laura Carstens is transmitting the 2019 Washington Neighborhood Market Analysis Update. � Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Laura Carstens, Planning Services Manager Dubuque THE CITY OF � All America Cip DuB E ;i�ji , Maste iece on the Mississi i z°°'.Z°lz=z°13 rP PP zoi�*zoi9 TO: Michael Van Milligen, City Manager FROM: Laura Carstens, Planning Services Manager ` z��% SUBJECT: 2019 Washington Neighborhood Market Analysis Update DATE: September 6, 2019 The purpose of this memo is to transmit the final report of the 2019 Washington Neighborhood Market Analysis Update for the City Council to receive and file. The City Council held an informational work session on Monday, August 26, 2019 for discussion and feedback regarding the 2019 Washington Neighborhood Market Analysis Update. A presentation on the final report was provided by consultant Scott Goldstein of Teska Associates. There were no changes requested at the work session. The enclosed report has had some typographic errors corrected. I recommend that this final report be submitted for the City Council to receive and file for the record. Thank you. Enclosure Washington Neighborhood Ma rket Ana lysis, 2019 '.I � I 1 �..._� `�A 4�f Tu � `I ,..1' � 1 �Iv II� P , '�� I � � il � �r ��.�i �II il � I . �I �� .�...iJ .� .�� I �'I I � I II 11[�I I � e � l � _ � � ..n \,�\�. �i✓. . � 1 �� I �� l �., � " z_ L� i �� I�� i, , ` � �. -�_ ��,1 � � ti�t�1 ,� � �� t � � - .�I �fi 1 � �+\' � �d �q ��" � 1 c i - '; � � I � , _ - , ., �-,-_��_,. i� I � � -•, � � ` ` � ,.` ��;�� : rl � -- , . � 1 .:: � � - � �,...�_` �-- 1 —. I � . �, I j I�-_, � � � �F�II�f i �f�-� � _ '� �! � �� — � ; � , � i - '�1°*°� '� �� v�a �-� - _ - - - - � � - ' 0—.� � � � � � � n � —f f p� � I •� �� _ � � � �, s i��I � � ,E., ,I _ � � `S'�. i .r�' �I � . I�f ��I � � � `��F l —�� ..�. I "y - " -- _ — i �_ ,�i __ � � _ _ . ; Prepared for the City of Dubuque Final, August 27, 2019 �eSka Contents Acknowledgements..................................................................................................................................................................1 1. Introd uction.......................................................................................................................................................................2 2. Summary of Findings.....................................................................................................................................................3 3. Highlights of Recent Investments and Plans.........................................................................................................5 4. Trade Areas.........................................................................................................................................................................9 5. Demographics................................................................................................................................................................11 6. Retail..................................................................................................................................................................................21 _Case Study:Chris Richards,CA Rich Properties..................................................................................................26 _Case Study:Gronen Properties.................................................................................................................................27 _Central Avenue Positioning and "Brand Promise".............................................................................................28 7. Housing............................................................................................................................................................................30 8. Central Avenue Corridor.............................................................................................................................................37 Acknowledgements Michael Van Milligen,City Manager Laura Carstens, Planning Services Manager Jill Connors, Economic Development Director Alexis Steger, Housing&Community Development Director Teska Associates: Scott Goldstein, FAICP LEED AP Mike Hoffman,AICP,PLA Special Thanks to: Rick Dickinson,Greater Dubuque Development Corporation and Ed Raber,True North Mary Gronen and Cheryl Schromen,Gronen Properties Dan LoBianco, Dubuque Main Street Chris Richards,CA Rich Properties Washington Neighborhood Market Analysis, 2019 Page 1 1 . Introduction /�� '' / "r �" � � � / ,��;�,� �'�� : i i tf_ /' �. � �"-- �� al.. _�! i � � l�"� i i, � � � „ - - i, .�� , (�IL � .'- ��7 �1 �v� P > � �fiC� � �� I I �� i �� 1 � I r ��N �} • p. ,'�AA�+._�..;;_� _ m.J �� __ � ' � ��".'� el i ■ - j, .. � -1 � a.� � � �: � �� ;�� P� — � -�: _ � _ — --- —� — — The Washington Neighborhood has been a majorfocus for reinvestment by the City of Dubuque and its partners since the mid 2000's. Signs of decline- housing maintenance,commercial vacancies, lower income levels and lower housing values- led to a concerted effort to attract public and private reinvestment to the area. Since this time a number of strategies have been deployed-from housing acquisition and rehabilitation to restoring homeownership to assistance to local businesses and property owners through facade improvements and technical assistance,to investments in schools, parks and infrastructure. Teska Associates was first retained by the City of Dubuque in 2008 to undertake a Community Assessment&Revitalization Strategies report under the°Washington Neighborhood: Revitalize" Initiative.The 2009 Plan recommended a number of actions that were implemented in the areas of economic development;families,youth &education;and housing. In 2013,Teska Associates updated a market study for the Washington Neighborhood and the surrounding Trade Area.The market study founded positive indicators in the areas of stabilization of population,improvements in education levels of adults,an increase of retail demand,and increased number ofjobs.The study also pointed to ongoing challenges including low homeownership rates, lower incomed than citywide levels,and housing costs (particularly on the rental side)that were not affordable to resident households. Since this time,the City and its partners have continued to invest in the area including major investments in infrastructure,the Bee Branch Watershed Flood Mitigation Project, housing rehab and homeownership.The Imagine Dubuque Comprehensive Plan reinforced these efforts, laying out an agenda for more equitable and sustainable growth. This report aims to review market trends and develop findings regarding current market indicators for housing and commercial redevelopment and reinvestment. Washington Neighborhood Market Analysis, 2019 Page 2 2. Summary of Findings Highlights of Recent Investments and Plans • C.H.A.N.G.E. is an ambitious $19 million plan to improve 739 homes,building on the City's commitment since the mid-2000s to invest in the Washington Neighborhood and surrounding neighborhoods. • Key partners include CHANGE,True North,Community Housing Initiatives,Community Foundation of Greater Dubuque, Dubuque Main Street, Steeple Square, Dream Center, Fountain of Youth and Multicultural Family Center. • Bee Branch Watershed Flood Mitigation Project has resulted in the daylighting of the Bee Branch Creek that not only reduces flood risk and improves resiliency, but has created new, pedestrian-oriented open spaces,gathering areas and paths,as well as the removal of blighted properties and the renovation of homes in the watershed. Demographics and Employment • There have been positive improvements in several key indicators including population and housing units.Yet, median income has declined between 3%and 6%since 2007. • Education levels have improved:adults over age 25 without a high school degree or equivalent has declined from 28%to 17% in the Washington Neighborhood,while adults with college degrees have increased from 9%to 13%. • Unemployment is higher in the Washington Neighborhood,ranging from 4.1%to 6.24% based on the Census Tract compared with 23%citywide. Unemployment in surrounding Census Tracts in the Washington Trade Area range from 2.7%to 103%. • There are 101 businesseswith 1,643jobs in the Washington Neighborhood and 562 businesses with 9,819jobs in the Trade Area.There are proportionately more retail trade and less servicejobs in the Washington Neighborhood than citywide. Retail • Retail demand and sales have increased in the Washington Neighborhood but declined in the Washington Trade Area since 2013.There is currently$15 million in retail demand and $46 million in supply serving the Washington Neighborhood and $85 million in demand and $137 million in supply serving the IargerTrade Area. • A backdrop of a reduced need for traditional retail space due to national trends requires a new approach to commercial space and business districts. • Unique,local stores that are driven by local businesses or relocated businesses that can cater to the growth in workers downtown,the slated improvements to Central Avenue and offer a more neighborhood shopping experience rather than competing with big box stores or Internet shopping. • Artist workshops/galleries/work spaces-affordable space that can offer both a retail presence and space to work and perhaps live above. • Ethnic stores and restaurants that not only cater to local residents but offer destination shopping for what you cannot get easily in the rest of Dubuque/Galena areas and will attract shoppers. Washington Neighborhood Market Analysis, 2019 Page 3 • Health care and fitness-one of the fastest growing sectors nationally are increasingly being attracted to commercial spaces in business districts. • Food and general merchandise at an affordable level are needed to provide healthy foods so that people do not need to drive or take a bus to find choice and value. Housing • City-led investments and workwith partners has resulted in stabilization of the housing market.Absent these investments, homeownership would have likely declined and vacancy ratesincreased. • Planned investments in housing rehabilitation,down payment assistance and homeowner repair are essential tools to maintain the housing stock and increase the demand for housing. • Additional tools may be needed for housing counseling,credit repair and outreach.With a large number of renter families,efforts to build a ladder for renters to become homeowners can build greater demand and provide more stability and opportunity forfamilies. • Recent efforts to step up housing code enforcement is essential to ensure that all housing is safe and meets code. • The City should consider other tools to encourage responsible landlords to offer quality housing options.This may include matching grants for renovations and/or energy efficiency. • The City and its partners can workwith property owners and financial institutions to consider lease-to-purchase programs and/or cooperative ownership models. Central Avenue Corridor Plan Market Findings • Two-way traffic would improve the business environment along the Corridor. • Slow,steady and safe traffic would enhance visibility to local stores, restaurants and attractions. • Increased number of pedestrians would support local businesses. • Improvements to the Central Avenue Corridor and Washington Neighborhood would align with national trends of successful business districts that offer a quality experience, not simply commodity goods that they can be purchased on-line or at big box stores. • Celebrating art and culture are important elements to reposition Central Avenue and the Washington Neighborhood and may increase investment and visitors to the area. Washington Neighborhood Market Analysis, 2019 Page 4 3. Highlights of Recent Investments and Plans Since the early 2000s,the City of Dubuque has led ■■ � several housing and community development ■■ initiatives focused in the Washington Neighborhood CH A N G E and other surrounding areas in the Trade Area. Comprehensive Housing Activities for Neighborhood Growth&Enrichment(C.H.A.N.G.E.) is a campaign of neighborhood revitalization and an extension of sustainability to specifically address marginal properties,affordable housing and homeownership. From 2010-2015: $2.8 million was invested to improve 203 properties in the Washington Neighborhood and Bee Branch Watershed.These programs have included: Washington Neighborhood: o Homebuyer Program:provides down payment assistance loans from $10,000-$25,000 depending on income o Homeowner Rehabilitation Program: provides loans for home improvements and repair o Housing Choice Voucher Home Ownership Program:allows participants to utilize their Housing Choice Voucher towards purchase of a home. Additional Programs: o Homeowner Rehabilitation Loan Program -up to$25,000 o Home Repair Loan- up to$5,000 o OATH (Officer at home) Incentive Program-an incentive for police officers and firefighters to buy homes in the Downtown Urban Renewal District o First-Time Homebuyer- provides$S,OOO loan tofirst-time homebuyers.Households under 30%of Area Median Income (AMI) can receive up to$25,000 o Accessibility Rehabilitation Program- provides forgivable loans for accessibility From 2016 to 2012 C.H.A.N.G.E. is planned to provide the following outcomes: o Marginal Property Acquisition: $4.2 million, 100 housing units o Lead &Healthy Homes: $3.2 million, 129 housing units o Bee Branch Healthy Homes Resiliency Program: $8.4 million,320 units o Housing Rehabilitation: $3.74 million, 190 units o Total Impact: $19 million to improve 739 homes Washington Neighborhood Market Analysis, 2019 Page 5 True North True North was founded in 2017 by the Greater Dubuque Development ''� Corporation as part of a five-year campaign entitled Greater Dubuque ` � `., 2022.True North focuses exclusively on the North End of Dubuque, o u s u a u e�s I including the Washington Neighborhood and has three priorities: 1) -u�,n n r .`TI„I removal of blight and the creation of affordable housing;2) � identification and pursuit of redevelopment, reuse and repurposing of commercial and/or industrial assets;and 3) infrastructure improvements capable of creating the physical,financial and cultural environment necessary to enable new businesses to develop,and existing businesses to reinvest in the north side corridors. Community Housing Initiatives, Inc. (CHI) CHI is an experienced housing developer and a NeighborWorks chartered member.CHI brings more than two decades of experience working with community partners throughout lowa to deliver innovative real estate and community development solutions. In Dubuque, it is leading a neighborhood C O M M U N I T Y revitalization program byfacilitating the Washington Neighborhood H O U S I N G Homebuyer Loan Program and Homeowner Rehabilitation Loan Program. I N I T I AT I V E S Community Foundation of Greater Dubuque The Community Foundation has a long history of supporting local programs in the Washington Neighborhood. For example,the Foundation recently sponsored the Convivium Urban Farmstead which provided workshops for school-age children on cooking techniques and nutritional value of foods. The Foundation also led the Partners for Places Equity Pilot Initiative that engaged the community and City staff in understanding issues of equity and provided education and training for non-profits and City departments to implement proven practices for developing positive,authentic relationships Dubuque Main Street Dubuque Main Street provides a variety of programs to advance concepts of the National Main Street Center. Programs including promoting design that � � a � a � E advances local development,collaborating with other organizations to �N STREET advance key Main Street principles, promoting local events and supporting economic development. Washington Neighborhood Market Analysis, 2019 Page 6 Steeple Square Steeple Square is the former home of St.Mary's Parish. Renovations began in �I�� 2016 with the former church a unique event space hosting a wide-range of � � events.The former school is now the Francis Apartments, permanent supportiveandmarket-ratehousing.Theformerrectoryisnowthesiteof • ' Marita Theisen Childcare Center which will serve 72 children,filling a critical need for day care in the community. Dream Center � The Dubuque Dream Center is a communityoutreach center committed o RFA M to mobilizing youth and families to build on Dr. King's Dream of g transforming communities by empowering and uniHying those who live there.The program includes an Academic Center, SparkActivities such as C E N T E R boys and girls basketball,dance,choirand boxing,and meal mentoring. Fountain of Youth •�• Fountain of Youth works with underpriviledged youth and adults to help � them re-write their narrative,changing from the crisis-to-crisis mentality into one of future-mindedness.The organization equips participants with the necessary tools to attain and maintain gainful employment with Fuuietain uf I'uuth opportunities for skills training advancement or to complete their GED and pursue higher education. Multicultural Family Center The Multicultural Family Center has been located at the Ruby Sutton Building at 1157 Central Avenue since 2016 where a range of programs and � services are provided including educational and empowerment programs, � social events and celebrations,dance/movement programs and social events and celebrations and meeting space for a wide range of social support and advocacy groups. Washington Neighborhood MarketAnalysis,2019 Page 7 Bee Branch Watershed Flood Mitigation Project After a major tornado and ensuing flood in 1999,the City of Dubuque began major planning and alternatives analysis to reduce the volume of stormwater,slow the rate of stormwater through the upper watershed,increase the safe conveyance of stormwater through the flood-prone area,and provide floodwater protection to the City's water treatment plant on Hawthorne Street. In 2013,the project was awarded $98.5 million form the lowa Flood Mitigation Board in the from of state sales tax �,� ' increment financing over the next 20 , , '� -(ii�; 9. + � years. In January 2016,the U.S. �� ,�,, �� °�4��= �, �� * � � �e .""`a"�'�� B��(f�' � — Department of Housing and Urban ��:;�a�+�'�,� �«:��YA ;-�.< -�.se..� � -.-� ar' Development (HUD) award the City $31 S �� , ��- ' � � �t}�r�� yr,..;.��.�-��_ �� million in disaster resiliency funds for the �� _�- 1 � _- ' _ Bee Branch Healthy Homes Resiliency � '�� `� ' �-__-- - ,�„�.�.--r�"''..-.._ Program. In total,the City received $160 --_ — � million to help fund the$219 million project. In addition to the flood protection � � benefits,the Bee Branch Healthy Homes ' '` �� ._�� :� :� Resiliency Program addressed low . ,a, � ,,;�.� <.0 �., . . , _ property values and deteriorated homes � � j�-� "�, a ' ��'� �� ; that were a result of flooding and risk of �� s� �-,,,; 6-` t � ,.. � � �,„"�� flooding. �� " _ _ The project has not only resulted in open "� � � � �� "� � �� "�" `� space amenities,reduced flooding,but a stabilization of property values of nearby properties,as well as making all housing and commercial buildings in the watershed more resilient and reduced risk of flooding. The project also had the consequence of removing deteriorating homes and stabilizing the residential market as will be discussed in the demographics section of this report. Washington Neighborhood Market Analysis, 2019 Page 8 4. Trade Areas Three trade areas were defined to inform various elements of the Market Analysis: - Washington Neighborhood -the area formed by the Washington Neighborhood geographic boundaries - Washington Trade Area -the area that includes Downtown,Washington Neighborhood, Millwork District and parts of the North End - City of Dubuque-city boundaries a) Washington Neighborhood The Washington Neighborhood is located between 11`" Streeton the south and 22nd Streeton the north, Heeb Street on the west and just east of Elm Street on the east. b) WashingtonTradeArea The Washington Trade Area represents the market area surrounding the Washington neighborhood. It encompasses several commercial corridors that are served by a variety of retail and business services. As shown in the figure below,current population estimates show a mixed pattern of growth in population depending on CensusTractwithin the trade area. c) CityofDubuque The Market Analysis also compares trends taking place in the Washington Neighborhood and the Washington Trade Area to the City of Dubuque. Washington Neighborhood Market Analysis, 2019 Page 9 ��r� \` �1�• ♦��♦ \ ��1`��• •�� • � �� \�\•\•\•�► �1 � �� ♦.��1�� lh�i�i�i�i■i■i�i■i■i■i�i�i�i�� , 1� �� j�� 1��1� � �1� 1� 1� ♦ �.♦. ♦.� 1� �1 �,♦♦ ♦♦�1 1� � •�:� ♦ s �� ♦•• �♦ • � .� �.♦ .� �♦ - •. • ••- ♦ �..��. � �♦ : � �♦♦♦ : �� - i,_, _, � � v� ..\1�� 1� �1 1 RLAtCryU Si / • • . � ^IIS73� � . '• •• •�� . � � � 1 Pu�' I 1 � 1 �� 1 �� • 1 : . . •� 1 �q � �. . � � � . . - : � 1 r�;. � � : \♦\♦\♦\♦�� _ +`,_ 0 0.25 0.5 Miles I I I Washington Neighborhood&Trade Area Map Washington Neighborhood Market Analysis�City of Dubuque,IA March 2019 Washington Neighborhood Market Analysis,2019 Page 10 5. Demographics Population in the Washington Neighborhood and Washington Trade Area has begun to rebound,after declining from in the 1990s and early 2000s.The total population has increased by 348 residents in the Washington Neighborhood since its low-point in 2007,while the population in the Trade Area has increased by 377 residents since 2010. These trends mirror citywide trends in which the City of Dubuque has seen a recent growth of 2,974 residents,or 5%,since 2010. As can be seen in Figure 2, the increase in population is associated with an increase in housing units since 2010, most of which have either been either homeownership units in the Washington Neighborhood and higher-end rental units in the Trade Area such as in the Millwork District. FIGURE 1:POPULATION TRENDS . . . . - • � � � - - �• •�� .�- � - 1990 1,949 12,603 57,546 2000 1,865 11,969 58,022 2007 1,654 11,198 57,340 2010 1,774 9,788 57,637 2013 1,820 9,983 58,444 2018 2,122 10,165 60,611 1990-2000 -4% -5% 1% 1990-2007 -15% -11% 0% 1990-2010 -9% -22% 0% 1990-2018 9% -19% 5% 2000-2007 -11% -6% -1% 2000-2010 -5% -18% -1% 2000-2018 14% -15% 4% 2007-2010 7% -13% 1% 2007-2018 28% -9% 6% 2010-2018 20% 4% 5% 2013-2018 17% 2% 4% Source: US Census 2010,Nielsen Site Reports,2013,Esri Business Analyst,2018 Washington Neighborhood Market Analysis, 2019 Page 11 FIGURES 2,3 AND4:WASHINGTON NEIGHBORHOOD,WASHINGTON TRADEAREA AND CITY OF DUBUQUE POPULATION TRENDS Washington Neighborhood z,zoo z,000 i,soo i,soo 1,400 1,200 1,000 -k .-. N CJ C [n (O N oJ W -k .-. N CJ C [n (O -k oJ W -k N -k C [n (O N -k O W W W W W W W W W O O O O O O O N O O O -k -k W W W W W W W W W W O O O O O O O O O O O O �`J O O O O oJ W -� -� -� -� -� -� -� -� -� O N N N N N N O N N O N N N N N N -� N N N O O N N Washington'IYade Area 13,000 12,000 1 1,000 10,000 9,000 8,000 7,000 6,000 -k .-. N M C [n (O N oJ W -k .-. N M C [n (O -k oJ W -k N -k C [n (O N -k O W W W W W W W W W O O O O O O O N O O O -k -k W W W W W W W W W W O O O O O O O O O O O O �`J O O O O oJ W -� -� -� -� -� -� -� -� -� O N N N N N N O N N O N N N N N N -� N N N O O N N �Washington'IYade Area City of Dubuque sz,000 so,000 58,000 56,000 54,000 52,000 50,000 -k .-. N CJ C [n (O N oJ W -k .-. N CJ C [n (O -k oJ W -k N -k C [n (O N -k O W W W W W W W W W O O O O O O O N O O O -k -k W W W W W W W W W W O O O O O O O O O O O O �`J O O O O oJ W -� -� -� -� -� -� -� -� -� O N N N N N N O N N O N N N N N N -� N N N O O N N Source: *US Census 1990,2000,2010;Nielsen Site Reports,2013,**Esri Business Analyst,2013 and 2018 Washington Neighborhood Market Analysis, 2019 Page 12 In order to look at some of the contributing factors that related to the decline of population in the Washington Trade Area,City staff identified the demolition of units associated with the Bee Branch project. Based on this analysis,there was an approximate decline of 126 residents in the period of 2005-2009 due to the Bee Branch out of a total loss of 2,191 residents during this period of time. In fact,the decline in housing units during 2000 and 2010 can be explained by the loss of units due to the Bee Branch which resulted in 62 demolitions, larger than the decline of 13 units across the Trade Area.The change in population may have therefore been due to smaller household size orvacant units.This appears to have stabilized since 2010 as housing units have rebounded. FIGURE 5:HOUSING UNITCHANGE 2000-2018 . . . . � . . - - .. ... ..- � - 2000 Housing Units 1,004 4,569 24,070 2010 Housing Units 971 4,548 25,176 2018 Housing Units 1,086 4,781 26,667 Source: US Census 2010,Nielsen Site Reports,2013,Esri Business Analyst,2018 Figure 3 shows the breakdown of racial composition in the Washington Neighborhood,Trade Area and City of Dubuque.Hispanics of any race are 6.9% in the Washington Neighborhood,3.6%in the Trade Area and 2.4% in the City of Dubuque. FIGURE 6:RACIAL COMPOSITION(PERCENTAGE) 100% - 90% - 9.2 80% 18.3 70% 60% 50% 40% 30% 20% 10% 0% Washington Neighborhood Washington Trade Area City of Dubuque ■WhiteAlone B1ackAlone ■Other Washington Neighborhood Market Analysis, 2019 Page 13 Household Income Household income in the Washington Neighborhood and Trade Area has stagnated since 2007.While the City has experienced 23%growth in median household income, income has declined in the Washington Neighborhood and Trade Area by-3%and -6% respectively.This change could have been due to a variety of reasons including reduced number of hours,stagnation in wages per hour,greater number of single-income households, households with higher incomes moving out to other areas,etc. More research would be needed to determine the causes for this decline. FIGURES 7:CHANGE IN HOUSEHOLD INCOME • • • • • � � � - ' �• •�� . �' ` ' � � � ' � 1990 13,798 19,896 28,277 28,277 2000 23,652 29,774 36,785 39,621 2007 27,640 34,291 40,341 46,754 2013 29,844 32,353 44,559 49,296 2018 26,853 32,263 49,661 49,661 Change 1990-2018 95% 62% 76% 76% Change 2007-2018 -3% -6% 23% 6% Change 2013-2018 -10% -1% 11% 1% Median Household Income • I 1990 1995 2000 2005 2010 2015 2020 tWashingtonNeighborhood— —Washington'IYadeArea tCity of Dubuque Dubuque MSA Source:Nielsen/Claritas for 2007 and 2013 Washington Neighborhood and Washington Trade Area and Esri Business Analyst for 2018 data Washington Neighborhood Market Analysis, 2019 Page 14 Education One of the most importantfindings in earlier market studies was the need for higher education, particularly for adults,to create a career path for residents and higher wages.There have been significant gains in education at all geographic levels.The percent of adults age 25 or more with less than a high school degree has dramatically declined at all levels. In fact,the Washington Neighborhood and Washington Trade Area have narrowed he gap with the City of Dubuque. In addition,the percent of residents with college degrees or higher has gained steadily at all geographies over the past eleven years.While there still is a substantial gap,there has been a steady increase in the level of adults with college degrees within the Washington Neighborhood and Trade Area that should lead to higher wages over time. FIGURE8:EDUCATION LEVELS • . • . . � � � - . - �• •�� . �' ` ' � � � - Less than high school degree 2007 28% 25% 12% 16% 2013 16% 16% 9% 9% 2018 17% 15% 9% 8% College degree or higher 2007 9% 11% 27% 23% 2013 11% 12% 29% 26% 2018 13% 14% 32% 30% Source:Nielsen/Claritas for 2007 and 2013 Washington Neighborhood and Washington Trade Area and Esri Business Analyst for 2018 data Washington Neighborhood Market Analysis, 2019 Page 15 Unemployment Unemployment is higherwithin both the Washington Neighborhood and Trade Area.As shown in the table below,the three Census Tract Blocks within the Washington Neighborhood show unemployment rates of between 3.58%and 6.24%,while rates in the Trade Area range between 2.72%and 10.26%in 2018.These rates may represent a decline from past higher levels during the Recession,although they are still substantially higher than the citywide unemployment rate which was 3.4%at the start of 2018 and has declined to 2%as of May 2019 according to the Bureau of Labor Statistics. Note that current rates at the Tract level may have changed since 2018 but the information is not available at the Tract level on a monthly basis. FIGURE 9:UNEMPLOYMENT RATES - � • '� • - . .- - C • 190610001.001 6.24% 190610001.003 3.58% 190610005.004 4.10% 190610001.002 4.08% 190610003.001 2.72% 190610003.002 7.56% 190610004.001 5.07% 190610004.002 8.04% 190610004.003 2.68% 190610005.001 6.32% 190610005.002 4.39% 190610005.003 10.26% Note:Highlighted Data Indicates Washington Neighborhood Census Tract Blocks Source:Esri,2018,Bureau of Labor Statistics. Washington Neighborhood Market Analysis, 2019 Page 16 FIGURE 10:UNEMPLOYMENT RATE BY CENSUS TRACT,2018 - - � I \ ; i , � _.. --- �` .. -` � _- - _ -� -�i �.-�� >> _ I „ '� � -� -� �� i '� , '�. I f ' -� - - ' - - � �� L { , � _ � � � r ,�„4�. �. , < < ! �r� i �-� r -'� � �� -�:�.�,.-� � — � � i � � �� ,� . - �, i I f_ � � �� _., , ' _..._. ', _ . ''`1,.�.,� ,�„ _ -� \� - r � � t � -- - `_ , % �� — �. _ , .,� _<� , - � , �, ; , . , -. ; > � � � ��.,9, ' � a>, . , o ,,, , ,;, , a ��,; Number of Businesses and Jobs Both the Washington Neighborhood and Trade Area arejob centers of Dubuque.There are 101 businesses with 1,643jobs in the Washington Neighborhood and 562 businesses with 9,819jobs in the Trade Area.As shown in Figure 11,Census Tracts in the Washington Neighborhood and Downtown show a concentration ofjobs. As shown in Figures 12 and 13,there are proportionately more retail trade and less servicejobs in the Washington Neighborhood than citywide. Washington Neighborhood Market Analysis, 2019 Page 17 FIGURE 11:NUMBEROF EMPLOYEES BYCENSUSTRACT / \ � � �� - � � _ � �� A -�- - u � � � � 1 , � � ,� � � _, r� ��,�. � �� _ , � �- <� �� _ � � / � �� 1o,a�EmP�ovaes�s,��Ya�o� � �� rII \ � . �s�o�o ez„ I\ I �/ � 3i495�0 5ifi0.9 \ 1iBbL�0 3i494 492 �o �Bfi5 3 �0 491 Source:Esri Business Analyst 2018 Washington Neighborhood Market Analysis, 2019 Page 18 FIGURES 12 AND 13:10B5 BY SECTOR - - � Services 33% 34% 39% Retail Trade 26% 23% 23% Government 10% 13% 6% Finance, Insurance, Real Estate 8% 9% 10% Transportation/Trade 7% 7% 7% Construction 5% 5% 5% Manufacturing 5% 5% 4% Communication/Misc. 5% 5% 6% Agriculture 2% 1% 1% Agriculture L Communication/Misc. � Manufacturing � Construction � 'IYansportationPPrade � Finance,Insurance,RealEstate � Government Retail Trade Services 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% ■Dubuque ■Washington'IYade Area ■Washington Neighborhood Source:lnfogroup,Inc.2018 Washington Neighborhood Market Analysis, 2019 Page 19 FIGURE 14:TOTAL BUSINESSES AND JOBS Agriculture&Mining 2 • 2.0% 4 ' •02% • 5 • 0.9% • 17 ' •02% Construction 5 5.0% 48 2.9% 26 4.6% 285 2.9% Manufac[uring 5 5.0% 146 8.9% 26 4.6% 1,528 15.6% 4 4.0% 38 2.3% Transportation 17 3.0% 368 3.7% Communication 1 1.0% 5 0.3% 8 1.4% 77 0.8% Utility 1 1.0% 17 1.0% 2 0.4% 65 0.7% WholesaleTrade 3 3.0% 36 2.2% 21 3.7% 268 2.7% RetailTradeSummary 26 25J% 406 24J% 128 22.8% 1,840 18]% Home Improvement 1 1.0% 100 6.1% 6 1.1% 459 4.7% GeneralMerchandiseStores 0 0.0% 1 0.1% 1 0.2% 8 0.1% Food Stores 2 2.0% 63 3.8% 10 1.8% 143 1.5% Auto Dealers,Gas Stations,Auto 5 5.0% 24 1.5% Aftermarket 15 2.7% 90 0.9% Apparel&AccessoryStores 1 1.0% 3 0.2% 4 0.7% 20 02% Furniture&Home Furnishings 0 0.0% 3 02% 6 1.1% 34 03% Eating&Drinking Places 12 11.9% 150 9.1% 56 10.0% 734 7.5% Miscellaneous Retail 5 5.0% 62 3.8% 28 5.0% 352 3.6% Finance, Insurance,Real Estate 8 7.9% 180 11.0% Summary 50 8.9% 854 8]% Banks,Savings&Lending 3 3.0% 65 4.0% Institutions 10 1.8% 299 3.0% Securities Brokers 1 1.0% 2 0.1% 9 1.6% 34 03% InsuranceCarriers&Agents 1 1.0% 49 3.0% 10 1.8% 220 22% Real Estate,Holding,Other 3 3.0% 63 3.8% InvestmentOffices 20 3.6% 301 3.1% ServicesSummary 33 32J% 640 39.0% 190 33.8% 3,429 34.9% Hotels&Lodging 1 1.0% 7 0.4% 6 1.1% 110 1.1% Automotive Services 2 2.0% 12 OJ% 11 2.0% 74 0.8% MotionPic[ures&Amusements 3 3.0% 94 SJ% 16 2.8% 476 4.8% Health Services 3 3.0% 63 3.8% 12 2.1% 328 33% Legal Services 2 2.0% 20 1.2% 13 2.3% 101 1.0% Education Institutions&Libraries 1 1.0% 37 2B% 12 2.1% 423 43% OtherServices 21 20.8% 409 24.9% 120 21.4% 1,917 19.5% Government 10 9.9% 124 7.5% 70 12.5% 1,084 11.0% Unclassified Establishments 3 3.0% 0 0.0% 20 3.6% 2 0.0% i ii i�� ii i�� ii�� ii i�� Source:lnfogroup,Inc.2018 Washington Neighborhood Market Analysis, 2019 Page 20 6. Retail Over the past ten years,there has been a significant change in retail.With the increase in Internet sales,the amount of retail space required on a per capita basis has declined.Those business districts that are successful in today's economy are diversifying -adding non-retail uses including business services, health and fitness,offices and often housing. Retail demand and sales have increased in the Washington Neighborhood but declined in the Washington Trade Area since 2013. Traditional gap analysis identifies those categories that show a°retail gap"and are not meeting demand.General Merchandise would fit this definition and may still be successful with the right stores that are affordable and able to compete due to convenience. However,with larger stores in the Trade Area or larger format stores located just outside the Trade � " f � � • A__� - ` --- Area,there is no guaranteed success for any particular '�' ` ' category. - +�� Rather, recommendations for a successful attraction and � retention strategy should focus on: o � �r— ---- I —. - Unique,local stores that are driven by local � �-- businesses or relocated businesses that can cater to the growth in workers downtown,the slated improvements to � Central Avenue and offer a more neighborhood shopping �' T experience rather than competing with big box stores or �=' Internet shopping � �:�� : I _�i � 4 � - Artistworkshops/galleries/workspaces- affordablespace � � � I�� `; that can offer both a retail presence and space to work and � f� ��^ ' �� perhaps live above I I � �� f�� ,-��,� � �e� - Ethnic stores and restaurants that not only cater to local - � residents but offer destination shopping for whatyou F ��" '" � cannot get easily in the rest of Dubuque/Galena areas and willattractshoppers .�' �,' � � �' � �� _ - Health care and fitness-one of the � � ' r�4 / fastest growing sectors to meet the , 1 ,� �, . �� needs of the population =�` :� �al�� - Convenience items (food and ,�r � � � � � : general merchandise)at an � t ' �� affordable level so that people do �_� ' , . �;� �� not need to drive or take a bus to --9 F• _ V� '- find value FIGURE 2:A LOCALCAFE(TOP)AND WOODWORKING SHOP (MIDDLE)FROM CENTRALSTREET PLUS EXAMPLE OF A SMALL FORMAT(20,000 SF)TARGET FROM MINNEAPOLIS Washington Neighborhood Market Analysis, 2019 Page 21 FIGURE 15:RETAIL DEMAND AND SUPPLY IN THE WASHINGTON NEIGHBORHOOD • : � • • � � • i . �� i Total Retail Trade and Food& $14,988,765 $45,567,386 -$30,578,621 Drink Motor Vehicle&Parts Dealers $2,958,577 $1,810,576 $1,148,001 Furniture&Home Furnishings $377,943 $0 $377,943 Stores Electronics&Appliance Stores $461,840 $0 $461,840 Building Materials,Garden $709,444 $3,742,586 -$3,033,142 Equip. Food&Beverage Stores $2,727,180 $20,186,496 -$17,459,316 Health&Personal Care Stores $1,500,312 $6,148,369 -$4,648,057 Gasoline Stations $1,500,312 $6,148,369 -$4,648,057 Clothing&Clothing Accessories Sq7g�Z50 $268,958 $210,292 Stores Sporting Goods,Hobby, Book& $337,391 $867,581 -$530,190 Music General Merchandise Stores $2,385,430 $0 $2,385,430 Miscellaneous Store Retailers $625,773 $215,146 $410,627 Food Services&Drinking Places $1,330,835 $4,850,500 -$3,519,665 Full-ServiceRestaurants $1,21Q513 $4,097,455 -$2,886,942 SpecialFoodServices $26,185 $0 $26,185 Drinking Places $94,137 $61Q267 -$516,130 i Esri Retail Marketplace,2018,Infogroup Washington Neighborhood Market Analysis, 2019 Page 22 TABLE 16:RETAIL DEMAND AND SUPPLY IN THE WASHINGTON TRADEAREA • � � i : i � � Total Retail Trade and Food&Drink $85,434,549 $137,189,523 -$51,754,974 Motor Vehicle&Parts Dealers $16,894,361 $6,912,347 $9,982,014 Furniture&Home Furnishings Stores $2,169,852 $2,883,816 -$713,964 Electronics&Appliance Stores $2,619,863 $1,672,436 $947,427 Building Materials,Garden Equip. $4,367,792 $17,101,711 -$12,733,919 Food&Beverage Stores $15,373,290 $43,651,534 -$28,278,244 Health&Personal Care Stores $4,679,895 $12,787,711 -$8,107,816 Gasoline Stations $8,409,642 $19,835,411 -$11,425,769 Clothing&Clothing Accessories Stores $2,696,452 $2,401,032 $295,420 Sporting Goods,Hobby, Book&Music $1,931,340 $2,702,926 -$771,586 General Merchandise Stores $13,570,510 $1,104,146 $12,466,364 Miscellaneous Store Retailers $3,602,382 $2,907,336 $695,046 Food Services&Drinking Places $7,548,183 $23,229,116 -$15,680,933 Full-ServiceRestaurants $152,876 $713,912 -$561,036 SpecialFoodServices $544,100 $3,11$300 -$2,574,200 Drinking Places $6,851,207 $19,396,904 -$12,545,697 Esri Retail Marketplace,2018,Infogroup As shown in Figure 17,commercial properties for sale in the Washington Neighborhood and Trade Area are listed between $22 and $83 per square foot depending on location,visibility,traffic and condition of the building.Based on interviews conducted for the market study,developers are showing interest in well-located buildings due to the potential gain.The key challenges are renovation costs,securing commercial tenants and low leases.Based on interviews, mixed-use buildings with residential above retail are more desirable due to the positive returns of rental properties. Washington Neighborhood Market Analysis, 2019 Page 23 FIGURE 17:PROPERTIES FOR SALE IN WASHINGTON NEIGHBORHOOD AND TRADE AREA . . • . . . . � . 2230-2234 Centra I # �^�� $128,568 $33.00 3,896 . ;/ �'� Avenue " " a _-,. — _ y � - — -- • � 3270 Central Ave. $225,000 $46.88 4,800 � �� - �--� ,'-- � �� _ __ -� � r`�� 2024 Central $149,000 $22.46 6,634 ,� � � 9 : r Q � I _ _ .� , �_' ■ ■�1 i 709 Rhomberg $47,900 $83.45 574 E " >� — r � -,� ,,, ., 795 Groveland $142,000 $63.39 2,240 � � � � a .i ' ; " IA , Q �,� ,. . pi r.: .�- _" - Source:LoopNet,Century 21,March 22,2019 Washington Neighborhood Market Analysis,2019 Page 24 Listings for rental properties are limited for the Washington Neighborhood and Trade Area.Those listed show modest rents of between $32 for a triple net lease (exduding taxes, common maintenance and insurance) and $1 per sq ft for a gross lease(induding taxes) per month, or between approximately $4 and $12 per year.These rent levels make the area attradive for local businesses,however they are not high enough to cover thefull cost of renovating space for a developer.City programs to support facade and other renovation costs will likely continue to be needed for the short term until there is a critical mass of businesses that can support higher rents. FIGURE 1 S:COMMERCIAL PROPERTIES FOR LEASE � � � � ' � . � - ' , ""�� I — 1501 Central $750 $3.83 2,350 � � �`�"` �� Q� , . F i 1365Jackson $1,300 $4.46 3,500 / k' ' �� A�'�j �- � � 'd � ��. � �. + 11651owa $575 $11.98 576 = �r� �^_ � � _ � . sI -�-�- � IIIII _ Cl __ -�--_ . Source:Century 21,March 22,2019 Washington Neighborhood Market Analysis,2019 Page 25 Case Study: Chris Richards, CA Rich Properties Why invest in the Central Avenue Corridor?°Untapped potential, beautiful architecture,good people, lots of creativity and buzz.°Chris started investing in the corridor six years ago by buying V32-1734 Central Avenue.The building was already maintained with eight apartment units over two storefronts. Investing in the project showed the potential in Dubuque,where he found the City and local organizations like Main Street easier to workwith than in neighboring Wisconsin. He moved onto renovating 1798 Central Avenue, ` �-` . _; � �'• this time taking on four apartments and four •-_� E- -� _ storefronts, located across from the Fire Station •�.- � �. `�� — � atthegentral Avenue bend at 18`" Street. �s ui� �rs� l �, ; � JAmon the tenants are Devour Cafe,a new coffeeshop that moved from Galena and Tre Sam � a business which offers a variety of bilingual = business seroices like tax help. � , � � ` , :.\ �-<. er;� �' /: i��;��' Three years ago, he purchased 1804-1812 � -� "�;.' , ,� Central Avenue,across the intersection.This was y �- '. �- :� his first historic renovation utilizing Historic Tax �`rf�. �� '�,"t . '�. . '`f� Credits.All apartments are filled and two FIGURES 19 AND20:DEVOURCAFE(TOP)AND 1804-12 storefronts are leased, including a new lease for CENTRALAVENUE(BELOW) Stone Art Studio,a photographerwho is moving from Galena.He will have both retail space to �} � _ -�` 1 showcase his work as well as workspace. --- `� 1._ `t _ .'�.� � ^ = � �_. ^ ^ - 1 Chris is now working on a 30-unit building at 378 - �� ■ j ' � _rr�j�� W. 17`" Street Qust west of the corridor), his r � � �� I - ■_. _ ��-t largest project to date.According to Chris, he � � " � � _ � ' �'� r � � �• I I I has learned that it is°important to overcome � common beliefs. People don't understand the - � potential when you tell them you are investing � . 1 �r�j. here.You've got to see it for yourself.° He is very � �-- supportive of planned improvements for Central Avenue,with a two-way traffic and streetscape improvements including outdoor seating.He notes that the buildings he has renovated have received supportfrom the City,such as the°triple grant°-fa4ade, planning and financial grantfor renovation. He also points out that the steady rent of residential units allows the building to be financially viable for ground-floor commercial space. Washington Neighborhood Market Analysis, 2019 Page 26 Case Study: Gronen Properties Gronen renovated the historic Dubuque , � Casket Company as a multipurpose activity �. ! '�,�� centerincluding the Washington Court ' Apartments,QescentCommunity Health ,,y ��; ' y� I„I Center and project Concern offices.Gronen s' , la'� ,' Restoration,Community Housing Initiatives '� and the City of Dubuque collaborated in the � � d� renovation of this 65,000 sq ft building that `� — -�""'�-=' ' became a cornerstone of the Washington FIGURE 21:WASHINGTON COURTAPARTMENTS ATTHE Neighborhood Revitalization Strategy. ForsmeeCasKerComvaNv Schmid Innovation Center/CARADCO Lofts is a signature element of the Millwork District.The building was fully restored and is owned and managed by Gronen Properties. It fills an entire block that was built between 1880 and 1906.The building's firstfloor is comprised of commercial, retail and office space.The lower level houses the MillworkCollective-a multi-tenant organization supporting non- profit organizations and communtiy initiatives.The second and third levels are home to 72 one-and two-bedroom workforce housing and market-rate housing lofts.The residential lofts are 98% leased, and all but one commercial space on the ground floor is leased.Current tenants include: V / FUBNITURE WAREHOUS� AT H l E I S U R E W E A R �� • FiiNEss , � �o� ��F �� ;N � �� t � � �� I� � ` ��f �� _ - � - , �o� A;� Q,CC � �_ _ � �'qTEs �UN� � �� `- 5�-- • • • • Washington Neighborhood Market Analysis, 2019 Page 27 Central Avenue Positioning and `Brand Promise" The recognition of the improvements to Central Avenue,the Washington Neighborhood and the North End may not be keeping up with improvements to these areas.Recent perception surveys conducted by True North indicate ongoing challenges with the local views of downtown and the North End. Success stories like the Bee Branch, Millwork District,downtown employers are bringing in out-of-town entrepreneurs that see the potential. Efforts to improve the image will take a concerted effort of many partners. Logos and design need to offer a°brand promise;delivering on an experience that is unique,offering something different than the rest of Dubuque. Local stores, restaurants, renovated housing,and � ,,� beautiful, historic architecture all fit into what many people are looking for in going out to eat,shop orwork. � '� _ � 1 ,/� eW��@ r.�.ii �� /�; .W � r -�I � '�m __ � �- R,i ��'" , . .s.e`1 .� _ e''' �. _� � fs r. r F y,-„ �s W� � ��.� � .�= - , ��: �`� , - � a A G�=� ____ - �0 � "� I �. .� a � , � � �, � —�_ _ �,. � - 1 � °� �. =� ._. � _ 'S� � i - - . - � � ,�' � ' �- � � a' FIGURES 22 AND 2$:7 0�n hrvu�.�ry�nh�nv�rvu��r��hrvu o��o�iANCH(RIGHT) As the Urban Land Institute's 2019°Emerging Trends in DevelopmenY' points to for retail: The shift from simply merchandizing goods to providing space for services and °experiences"is no fad: it reflects the distribution of consumption spending across the economy...The trend for in retail leasing to accommodate urgent-care medical facilities, health and fitness providers, restaurants,financial services,and entertainmentvenues matches the way consumers are spending their dollars in ways that traditional malls and power centers did not.' ' Emerging Trends in Real Estate:United States and Canada 2019,Urban Land Institute and PWC,2019,page 16 Washington Neighborhood Market Analysis, 2019 Page 28 There are therefore several challenges for Central Avenue and other commercial corridors in the Washington Neighborhood and Trade Area: 1) Reposition the corridors to offer a variety of retail,restaurants and business services. 2) Deliver on the°brand promise°attracting younger households and a wide variety of potential customers looking for a genuine,authentic experience rather than shopping online or visiting a big box store on the City's edges. 3) Encourage local residents and small businesses to invest in the area- unlocking creativity and entrepreneurialism among those that may be disconnected from the mainstream economy. 4) Pursue branding efforts-both physically and electronically-to overcome perceptions that may be outdated.Through hosting events such as°Build a Better Block°to music,arts and culture,efforts to bring both local residents out and residents from the larger region in,can build demand and interest in coming back. Washington Neighborhood Market Analysis, 2019 Page 29 7. Housing The total number of housing units in both the Washington Neighborhood and Washington Trade Area has rebounded since 2010.The homeownership rate declined between 2000 and 2010 but has stabilized since 2010 at both the Neighborhood and Trade Area levels.The vacancy rate has also stabilized in the Washington Neighborhood, but increased in the Trade Area.Note that much of the new housing in the Trade Area (for example in the Millwork District)was conversion of industrial spaces and therefore would not have been counted as vacant housing prior to renovation. It is likely that absent City investment in homeownership,the homeownership rate would have declined and the vacancy rate would have increased atfar higher levels than has been shown at both the Neighborhood and Trade Area levels. FIGURE 24:HOUSING UNITS,HOMEOWNERSHIP AND HOUSING VACANCY 2000-2018 . . . . � . . - - .. ... ..- � - 2000 Housing Units 1,004 4,569 24,070 Owner Occupied Housing Units 27.0% 50.3% 64.1% Renter Occupied Housing Units 59.1% 41.8% 30.5% Vacant Housing Units 13.9% 7.9% 5.3% 2010 Housing Units 971 4,548 25,176 Owner Occupied Housing Units 23.6% 46.4% 61.9% Renter Occupied Housing Units 62.0% 44.5% 32.0% Vacant Housing Units 14.4% 9.1% 6.1% 2018 Housing Units 1,086 4,781 26,667 Owner Occupied Housing Units 24.1% 45.0% 61.4% Renter Occupied Housing Units 61.2% 44.5% 31.5% Vacant Housing Units 14.5% 10.5% 7.1% Source:Esri 2018,US Census,American Community Survey Washington Neighborhood Market Analysis, 2019 Page 30 The Washington Neighborhood and Trade Area are located in the 52001 Zip Code.According to current listings and recent sales,the median home value is $133,100 in 52001 compared with $156,100 in the City of Dubuque.Average days on market is 67 days,compared with 83 days citywide, although homes with negative equity(sales prices lower than existing mortgages) is higher and delinquency is higher in 52001. Rent prices in 52001 at$900 per unit are very close to the citywide median of$938. FIGURE 25:MEDIAN HOME VALUES AND RENT BY ZIP CODE 11 � � � - Median Home Value $133,100 $156,100 Average Days on Market 67 83 Homes with Negative Equity 8% 6.80% Delinquent on Mortgage 0.80% 0.50% Median List Price PSF $114 $137 Source:Zillow.com March 22,2019 As shown in Figure 26, housing costs as a percentage of income,approximately 10%of homeowners in the Washington Neighborhood.Approximately 11%of Washington Neighborhood homeowners with mortgages, 15%of Trade Area Homeowners and 13%of homeowners citywide pay over 35%of their income toward housing. FIGURE 26:HOUSING COST AS PERCENT OF INCOME FOR HOMEOWNERS WITH MORTGAGE . , . , . - . . . - � . . - - .. . . . . . - � - Less than 10.0% 0 3.3 3. 10.0 to 14.9% 6.3 15.2 13. 15.Oto19.9% 17.5 9.3 13. 20.0 to 24.9% 11.7 14.4 11 25.0 to 29.9% 3.4 4.7 5.2 30.0 to 34.9% 1 2.5 3. 35.0 to 39.9% 6.3 4.1 2.5 40.0 to 49.9% 2.4 1.7 2. 50.0%or more 1.5 6.6 3.9 Not computed 0 0.2 0.1 Source:Esri Business Analyst,2018 and American Community Survey Washington Neighborhood Market Analysis, 2019 Page 31 A closer look at the Washington Neighborhood and Trade Area and City of Dubuque derived from American Community Survey data by Esri shows somewhat lower home values, but a similar pattern. Median home values in the Washington Neighborhood are estimated at approximately$74,000 compared with $85,000 in the Trade Area and $140,000 citywide as shown in Figures 27 and 28.The data also shows that while the median is considerably lower,there are a substantial number of properties over$100,000 in both the Neighborhood and Trade Area. FIGURE 27:MEDIAN HOME VALUE TABLE . . . . • ' ' � � � - - �• •�� . �- � - <$50,000 16% 6% 7% $50,000-$99,999 70% 62% 20% $100,000-$149,999 11% 23% 29% $150,000-$199,999 1% 5% 20% $200,000-$249,999 0% 1% 9% $250,000-$299,999 0% 1% 5% $300,000+ 2% 2% 10% Median $74,321 $85,400 $140,633 Average Value $79,087 $107,795 $170,716 Source:Esri 2018,US Census,American Community Survey FIGURE 28:MEDIAN HOME VALUE CHART $300,000+ r $250,000-$299,999 � $200,000-$249,999 � $150,000-$199,999 � $100,000-$149,999 $50,000-$99,999 <$50,000 �- 0% 10% 20% 30% 40% 50% 60% 70% 80% ■Dubuque ■Washington Trade Area ■Washington Neighborhood Source:Esri 2018,US Census,American Community Survey Washington Neighborhood Market Analysis, 2019 Page 32 A closer examination of Census Tract data over time,shows a significant increase in three of the four Census Tracts that make up the Washington Trade Area.Changes range form a low of 5%decrease in Census Tract 3 to increases of 12% in Census Tract 1 and 14%in Census Tract 4. FIGURE 29:MEDIAN HOME VALUE BY CENSUS TRACT:2012-2017 � � � 1 $62,300 $69,900 12% 3 $94,200 $89,500 -5% 4 $95,100 $108,700 14% 5 $75,700 $79,800 5% Source:Social Explorer 2018,American Community Survey 2010 and 2017 Figures 30 and 31 show median home values by Census Tract in 2010 versus 2017.The images show an increase in median home values in the Washington Trade Area as well as adjacent Census Tracts. Washington Neighborhood Market Analysis, 2019 Page 33 FIGURE 30:MEDIAN HOME VALUE 201 O BY CENSUS TRACT mee�.�v.we acszmo�sv�rE4mnerm^ eg v Trac[4 ' m Trac[3 gm `�a'� i„e��v Taa 5 TRR1 o�n�q�e Ea�i as o�e�q�o G Hh � ..�,oc�.�.,..o. , us� � a�..o�.msoo�L� im� y �ial[�n� ��i�m.nnim��n FIGURE 31:MEDIAN HOME VAWE 2017 BY CENSUS TRACT mea�.�v.we acszm�(sv�re�'sim� ae uir �` Trac[4 �� Tract3 z� ,,.e.i, � .. T2a5 �s� - Trac[1 "t. o�n�q�e ea7i .r ees � .�� o�e�v�o i us � ,:�.��..��..��,� � ) s o�o�_a=.o�a� ii � . � ,000�.�_-s_n� � � i-sno�oe�i<o>o�o �oa,icwm�.,m� . � Washington Neighborhood Market Analysis,2019 Page 34 Rent levels in the Washington Neighborhood and Trade Area are very close to citywide rent levels.As can be seen in Figure 18,the largest clusters of rent in the Washington Neighborhood at between $350 and $550,although there is also a cluster between $700 and $750. FIGURE 32:RENT LEVEL TABLE . . . . • ' ' � � � - - �• •�� . �- � - Median Rent 499 519 600 Average Rent 521 565 690 Source:Esri 2018,US Census,American Community Survey FIGURE 33:RENT LEVEL CHART $1,500 and Up � $1,250to$1,499 r� $1,000 to$1,249 $900to $999 $800to $899 $750to $799 � $700to $749 $650to $699 $600to $649 $550to $599 $500to $549 $450to $499 $400to $449 $350to $399 $300to $349 r $250to $299 � $200to $249 � $150to $199 � $100to $149 C Lessthan$100 � 0 2 4 6 8 10 12 14 16 18 20 ■Dubuque ■Washington'IYade Area ■Washington Neighborhood Source:Esri 2018,US Census,American Community Survey Washington Neighborhood Market Analysis, 2019 Page 35 Housing Findings: 1) City-led investments and workwith partners has resulted in stabilization of the housing market.Absent these investments, homeownership would have likely declined and vacancy increased. 2) The City's investments in housing rehabilitation,down payment assistance and homeowner repair are essential tools to maintain the housing stockand increase the demand for housing. 3) The City's Rental Rehabilitation Loan Program is an important tool to provide stability in the housing market and maintain quality units at an affordable level. 4) Additional tools may be needed for housing counseling,credit repair and outreach.With a large number of renter families,efforts to build a ladderfor renters to become homeowners can build greater demand and provide more stability forfamilies. 5) Recent efforts to step up housing code enforcement is essential to ensure that all housing is 6) The City and its partners can workwith property owners and financial institutions to consider lease-to-purchase programs and/or cooperative ownership models. Washington Neighborhood Market Analysis, 2019 Page 36 8. Central Avenue Corridor With the construction of the Southwest Arterial and relocation of US 52 to that route,a re-envisioning is taking place for the character of Central Avenue that can reinforce the street as anchor to a thriving business district.Washington Neighborhood Central Avenue Corridor Plan is focused on improving the character of Central Avenue particularly between 11`"and 22nd Street. Prior to 1921,the segment was home to two separate streets,Couler Avenue to the north of 18`"and Clay to the south.When these streets became a state highway,the character of the street shifted from being pedestrian oriented°main°street to focused on moving traffic as fast as possible. The plan has had a tremendous amount of public input through activities that reached far beyond typical transportation planning meetings. Build a Better Blockwas an immersive planning experience that engaged the community in a variety of activities including outdoor pop ups,chalkdrawings and family events. , �/ � �I � �� '� �. j / � ��' j� I , `'•fE?� � � + ,� ,, ��.. ., ,;� � �` � � .� -r � ' - .� - =- _ � �� " ` � .i I�� F I-_ `I� � - . , � I � $ i� 1 _ �� 'I I'" 't ''j ` - — e I: '� ' If ' � s . � }. - 9.. �� , F � .� '' ��, �r.- �' �p: .�.� A �� pl ,. \ � � �y. � t ' � ' � '�_. .-- ' -..a�� , � ��:t�-�_ `- ._'r �.�. �'' � i� .� � _� .� . � . _._ .� ��',� -� � - _ !� � '. '"_ . _ "_ " '�`--� _ _ ' . .. - - ` `�� -:�-� . �' . '_ _ �.1 . _ - . .. .. � -: �. . -.. � � _ -r`i _ .�' _ __—'". . __'" ' ' . _ -. _ __ " ��.. � _ . . . -. . . "_ .. c- � -.- .. �'. ...s- . � - ` - � _ ti. ' '. _ _� ' '.�.. � ' .r ..' � -.. 4 .� � 4P-f ... .. . ��. Y -�M. .� . �� . .. .� � .. . ^��f ¢� . � � , . . -�"'RflaT� . . �.. � �� Y" � � .. .i�.n. .. . �.i� . ...�...v�' . . . � ��.-'..�"� . . . � . �.. FIGURE 34:BUILD A BETTER BLOCK DEMONSTRATION OF NEW OPEN SPACE Washington Neighborhood Market Analysis, 2019 Page 37 The proposed plan �Ilsfa the following elemenGc - Design �hes[reetforNvo-waytraffic - Designthes[reeGroperoembramthevisionofWashingronNeighborhood - Pnontizepedes[nanssuchasanhel8�"StreetCommonsuapedes[nanhub - Integrateartsandculmreinthedesign - Redummaintenancethroughsus[ainablematenals - PreservetheCorridofsarchitecture - Cr�tea "greener'eepenenmwiths[reettreesplantersandplantedbuffers - Encouragepedes[nanac[ivityrosupports[orebontsandcommercialuses - Pnontizea(etythroughlighting, �merasandlandropedesign NorthTransi[ion TheCorridorCore _ - _ - - o== — — a.,o,� — — emame � � � � . rvo�..rvo.i — � — FIGUPE 35:QLIGNMENTNND PPOVOSED ON-STPEET PNPKING NLONG CENTPNLQVENUE From a marl�t penpective,the importantelementsro support commercial and mixeduse developmentindude: - Two-wayhafficroimprove�serohavelthecorridorandnothaverotravelonone-way �irs. - Slow,s[�dyanda(eha(ficroenhanmvisibilityrolo�ls[ores, res[aurantsandattractions - Inc�sednumberofpedes[nansrosupportlo�lbusineses. - Improvementsrothe@ntralAvenueCorridorandWashingronNeighborhoodrotal� advanbge of national trendsasmcwssful busines dis[nc4 vie fora quality eepenenm, not simply oHer commodity goodsthat�n purchased oMine orat big box s[ores. - @IebratingartandculmrewillbeimportantelementsrorepositionCenhalAvenueandthe Washingron Neighborhood ro inc�se imes[ment and visirorsro the ar�. Washingron Neighborhood Marl�t Analysis 2019 Page 38