Dubuque Senior Apartments Project_Request for Letters of SupportMasterpiece on the Mississippi
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Laura Carstens, Planning Services Manager
Michael C. Van Milligen
Dubuque
keill
AN- America city
1111 !
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Request for Letter of Support for Dubuque Senior Apartments Project
DATE: April 12, 2010
Planning Services Manager Laura Carstens recommends City Council approval of a
letter of support for the 3 Diamond Development proposed affordable housing project,
Dubuque Senior Apartments.
The project will be a three -story, new construction elevator building. It will consist of 61
affordable one -and two- bedroom units, and one floor of underground parking. The
building will be approximately 74,000 square feet and is anticipated to use a geothermal
heating /cooling system. All residential units will be fully Handicapped Accessible.
The project is located on 3.112 acres of vacant land just west of the intersection of
Sylvan and Century Drives. On March 10, 2010 the Zoning Board of Adjustment of the
City of Dubuque successfully approved a conditional use permit to allow the
construction of this building in an R -4 Multi- Family Residential zoning district.
The City of Dubuque received on October, 2009 Dubuque Rental Market Overview
prepared by Real Property Research Group for the Iowa Finance Authority. The
conclusion includes the following sentence, "Given that most of the recent senior supply
has focused on the market rate side of senior housing the most likely opportunity for
additional senior oriented rental units lies in the affordable (income restricted) market.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Laura Carstens, Planning Services Manager
SUBJECT: Request for Letter of Support for Dubuque Senior Apartments Project
DATE: April 9, 2010
Dubuque
bitti
AI- AmedcaCi4
11111
2007
Introduction
This memorandum transmits a request from 3 Diamond Development for a letter of support for
their proposed affordable housing project, Dubuque Senior Apartments. Enclosed are a letter of
support, the Iowa Finance Authority notice of the Low - Income Housing Tax Credit (LIHTC)
application for Dubuque Senior Apartments, and related information.
Discussion
This project is described as 61 low- income, 1 and 2 bedroom units for persons 55 and older.
The IFA notice describes one multi -story building of new construction and 78 parking spaces.
The site is located west of the intersection of Sylvan and Bies Drives. The City has until April 20,
2010 to comment on the project.
In October, 2009, we received the Dubuque Rental Market Overview prepared by Real Property
Research Group (RPRG) for the Iowa Finance Authority. I summarized the report's overall
conclusions regarding senior housing in the attached one -page overview. The report's executive
summary is attached as well.
On March 10, 2010, the Zoning Board of Adjustment approved a conditional use permit to allow
construction of a three -story, 64 -unit senior apartment building, in an R -4 Multi - Family
Residential zoning district at this same location. The applicant was 3 Diamond Development,
LLC / L Wingate Properties LLC. 3 Diamond Development proposed a senior affordable
apartment building designated as Dubuque Senior Apartments. Property owners within 200 feet
were notified of the conditional use application.
The Zoning Board of Adjustment case file for this application is attached. The staff report
provides commentary on the proposal. Specifically, Planning staff does not anticipate a
significant impact to adjacent properties other than a small increase in the number of vehicle
trips on the surrounding street system, since the surrounding property is primarily developed for
multi - family residential, except to the south where commercial service type businesses are
served by Century Circle.
Recommendation
I recommend that the City Council approve the enclosed letter of support for this project.
Attachments
f: \users \Icarsten \wp\senior housing \ifa dbq sr apts support memo mvm.doc
Office of the Mayor
City Hall
50 West 13th Street
Dubuque, Iowa 52001 -4864
www.cityofdubuque.org
Joseph O'Hern
Executive Director
Iowa Finance Authority
2015 Grand Ave
Des Moines IA 50312
SUBJECT: Letter of Support for Dubuque Senior Apartments
Dear Mr. O'Hern:
The Dubuque City Council supports the proposed Dubuque Senior Apartments project,
which is a new construction, 61 -unit building, which will be affordable to seniors 55 and
older. This project will provide much needed affordable housing for seniors who are
ready to sell their homes and downsize to a smaller home. The proposed site borders
Kennedy Mall, which is an ideal location for senior housing. The developer, 3 Diamond
Development, is dedicated to bringing high quality housing to the city of Dubuque. The
project will have much community space and amenities for the residents to enjoy.
The Dubuque City Council supports the project's request to the Iowa Finance Authority
for an allocation of Low Income Housing Tax Credits to make the project possible.
Furthermore, the City Council wishes to state its preference for the Dubuque Senior
Apartments project among the other projects the IFA may be considering.
Thank you for your consideration.
Sincerely,
Roy D. Buol
Mayor
cc: Dubuque City Council Members
Michael C. Van Milligen, City Manager
Service People Integrity Responsibility Innovation Teamwork
April 16, 2010
03/25 /2010 Jeanne Schneider EXHIBIT TI _ .. .. E ._ _...._....... . __. .___.. _._._*
( ) ane r - XIB
IT 3T - NOTIFICATION OF CHIEF EXECUTIVE OFFICER OF LOCAL JURISDI� t�
From: <Karen.Winchester @iowa.gov>
To: <rdbuol @cityofdubuque.org>
Date: 03/25/2010 12:58 PM
Subject: EXHIBIT 3T - NOTIFICATION OF CHIEF EXECUTIVE OFFICER OF LOCAL
JURISDICTION
Dear Roy Buol:
Section 42(m)(1)(A)(ii) of the Internal Revenue Code of 1986, as amended, requires that the Iowa Finance
Authority (IFA) notify the Chief Executive Officer (or the equivalent) of the local jurisdiction when a
Low - Income Housing Tax Credit application has been submitted for a project in that local jurisdiction and
to provide reasonable opportunity for comment on the project. This letter serves as notification to you that
the following application has been filed with IFA under the Low - Income Housing Tax Credit Program.
Comments from the local jurisdiction are accepted but are not required. This is merely a required notice
to the jurisdiction.
Project Name: Dubuque Senior Apartments
Address: TBD; site located west of intersection of Sylvan and Bies Drives
City: Dubuque
County: DUBUQUE
Total Number of Units: 61
Number of Low - Income Units: 61
Number of Market Rate Units: 0
Number of Employee Units: 0
Number of Buildings: 1
Elevator: Yes
Total Number of Parking Spaces: 78
Total Number of Garages: 0
Commercial Space in the Building: No
Unit Type: Standard Apartment
Occupancy Type: Older Persons 55
Special Needs Type: N/A
Construction Type: New Construction
Bedroom Size(s): 1, 2
If you have any comments on this project, please reply to this email or mail your comments along with a
copy of this email to the following address within 10 business days from the date of this letter. Comments
will be considered prior to any action taken by IFA on projects that rank high enough in the review process
to receive a reservation of Low - Income Housing Tax Credit.
Dave Vaske
Iowa Finance Authority
2015 Grand Avenue
Des Moines, IA 50309
If you have any questions, please feel free to contact me at (515)725 -4941.
Sincerely,
3 Diamond Development
April 9, 2010
Michael Van Miiligen
Dubuque City Manager
50 West 13th Street
Dubuque, IA 52001 -4845
7444 N. Long Avenue, Skokie,11. 60077 1 Office: 847 -677 -72061 Fax: 847- 510 -0469
RE: April 19 Presentation to Dubuque City Council for proposed affordable housing
project to be named Dubuque Senior Apartments
Dear Mr. Van Milligen:
Thank you for including our project on the agenda of the April 19 Dubuque City Council meeting. As you
know, we have submitted an application to the Iowa Finance Authority (IFA) for an allocation of Low
Income Housing Tax Credits to finance an affordable housing development for seniors 55 and older to be
located near the Kennedy Mall in Dubuque. The project will be a three-story, new construction elevator
building. It will consist of 61 affordable one- and two- bedroom units, and one floor of underground
parking. The building will be approximately 74,000 square feet and is anticipated to use a geothermal
heating /cooling system. All residential units will be fully Handicapped Accessible.
We feel the site is ideal for seniors as it is accessible to many amenities. There are several retail stores,
grocery stores, pharmacies, banks, and dining opportunities within a mile of the site. The Kennedy Mail is
less than a half mile from the site, and includes retail stores, bars and restaurants, and a movie theater.
The Green Line and Red Line on the Keyline Transit System both stop at the intersection of Sylvan and
Pennsylvania, which is less than 0.3 miles from the site.
The project is located on 3.112 acres of vacant land just west of the intersection of Sylvan and Century
Drives. On March 10, 2010 the Zoning Board of Adjustment of the City of Dubuque successfully approved
a conditional use permit to allow the construction of this building in an R-4 Multi - Family Residential zoning
district.
As part of their process, the IFA sent the City of Dubuque a notification that the application was
submitted, and asked for any comment from the City. On the April 19 meeting, we respectfully request
that the City Council vote to comment back to the IFA their support of the project. Comments must be
received by April 20. We further request that the City Council vote to sign a support letter for the project,
which will also be sent to the IFA and used to demonstrate that the project has the City Council's support
to move forward.
We look forward to presenting to the City Council. We believe that this project will benefit the seniors of
Dubuque, and we look forward to working with your office to make this project a reality.
Sincerely, -
Neal Stein
Principal, 3 Diamond Development
♦ ♦ +
Planning Services Department
City Hall
50 West 13th Street
Dubuque, IA 52001 -4864
(563) 589 -4210 phone
(563) 589 -4221 fax
(563) 690 -6678 TDD
planning@cityofdubuque.org
ZONING BOARD OF ADJUSTMENT
NOTICE OF DECISION
DOCKET: 6 -10
APPLICANT: 3 Diamond Development, LLC / L Wingate Properties LLC
LOCATION: West of the intersection of Sylvan and Century Drives
DATE OF PUBLIC HEARING /DECISION: March 10, 2010
The Zoning Board of Adjustment of the City of Dubuque, Iowa hereby renders and gives notice of its
decision on the above - captioned application in conformance with Article 8 of the Unified
Development Code.
APPLICATION: The applicant seeks a conditional use permit to allow construction of a three -story,
64 -unit senior apartment building, in an R -4 Multi - Family Residential zoning district.
PUBLIC HEARING: After notice, as required by law, a Public Hearing was held on March 10, 2010.
Minutes of the meeting and copies of materials submitted in evidence are on file in the Office of
Planning Services, City Hall, Dubuque, Iowa.
FINDINGS: Based on the specific information presented at the Public Meeting and contained in the
application, and in accordance with the applicable standards in the Unified Development Code, the
Board has determined that the application will meet the standards governing the granting of a
conditional use permit as set forth in Section 8 -5.4 of the Unified Development Code.
DECISION: By a vote of 3 to 0, with one abstention, as indicated in the minutes, the Board
approved the conditional use permit.
VALIDITY: This Conditional Use Permit granted by the Board shall be valid for a period of 2 years
from the date on which the Board grants the Permit, unless within such two -year period a building
permit is obtained and the erection or alteration of a structure is started, or an occupancy permit is
obtained, if required, and the use is commenced. The Board may grant a maximum of one
extension not exceeding six (6) months, upon written application, without notice of hearing.
By _`, 3 •/Z• /o
Kyle . Kritz, Assoc = e Planner Date
f: \users\kmunson \wp\ boards- commissions\zba\notices\zba notices 2010\d06- 10.nod.doc
Masterpiece on the Mississippi
Service People Integrity Responsibility Innovation Teamwork
Dubuque
1
2007
THE CITY OF
DUB
Masterpiece on the Mississippi
allaariance
OConditional Use Permit
❑Appeal
❑Special Exception
❑Limited Setback Waiver
❑Rezoning
Dubuque
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PLANNING APPLICATION FORM
El Planned District
❑Preliminary Plat
❑Minor Final Plat
❑Text Amendment
❑Simple Site Plan
El Minor Site Plan
❑Major Site Plan
❑Major Final Plat
❑Simple Subdivision
DAnnexation
❑Temporary Use Permit
City of Dubuque
Planning Services Department
Dubuque, IA 52001-4864
Phone: 563 -589 -4210
Fax: 563 -589 -4221
❑Certificate of Economic Non - Viability
❑Certificate of Appropriateness
❑Historic Designation
:Neighborhood Association
❑Other:
Please type or print leaibiv In ink
Property owner(s):L iv; giePart; ey 6 G Phone 63 55-6
Address:Eloo;) Court +y � City *! Del1S State: ^r- ,Zip: c). 4.5
Fax Number: ati) -S-5 b ° .' 'i Cellular Number: E -mail Address i7 i
Applicant/Agent:, - ; m0` Ld l k� ` t ' rn n� Phon `d 7) G 7 7 -
Address: . 7 1 1 4 1 4 1 L. a ►A� .Ave- city:a-ex'. a State: ^� r
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Fax Number:?`17 -al 'J 4/ 00 CelluTar Number: _ E-mall Address: 115+ IN ( m c(IAA ✓G/4nr+wit
Site location /address: we-`* O4 -vke. i n4 tt s.. c. f4orr rp-t aY f ie..
Existing zoning: ii4 r
CERTIFICATION: I /we, the undersigned, do hereby certify that:
1. It is the property owner's responsibility to locate property lines and to check your abstract for easements and restrictive
covenants.
2. The information submitted herein is true and correct to the best of my /our knowledge and upon submittal becomes public
record;
3. Fees are not refundable and payment does not guarantee approval; and
Proposed zoning: i Historic District:
Legal Description (Sidwell parcel ID# or lot number /block number/subdivision): 1 oa'2g..0 70 0 .5 -
Total property (lot) area (square feet or acres): A? e roX rvN6. -i. (y " T 7 eee- A c A eS U. 55VIth e o4
Describe proposal and reason necessary (attach a letter of explanation, if needed):. e -1-' G In P
Property Owner(s):
Applicant/Agent:
4. All additional r-. Ired written and gra i materials are attached.
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FOR OFFICE USE ONLY - APPLICATION UBM AL CHECKLIST
Feet', ✓O• 192 Received by: ,// Date: 2 /y 7 o Docket: 'r/1 "/
I Site /sketch pian`i Conceptual Development n [Photo Plat
El Improvement plans Design review project description !. Floor plan
Date: (2-1S7 " /0
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Landmark:
Other:
3 Diamond Development
7444 N. Long Avenue, Skokie, IL 60077 I Office: 847 - 677 -7206 I Fax: 847 - 510 -0469
PROPOSAL FOR A CONDITIONAL USE PERMIT:
3 Diamond Development is proposing the construction of a 3 story 64 unit Senior
Affordable Apartment building on the southernmost portion of the property known
as Parcel ID #1028207005. The current zoning for the property is R4 which is
sufficient for the proposed height of the building, but does not allow for the amount
of units for the building. We are requesting a Conditional Use Permit to allow us to
increase the permitted amount of units on the property to 64.
+ + +
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UNIT COUNT: 61 UNITS
PARKING: 78 SPACES TOTAL
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CONDITIONAL USE STAFF REPORT Docket: 06 -10
Applicant: 3 Diamond Development, LLC /L Wingate Properties, LLC
Address: West of the intersection of Sylvan and Century Drives
Proposal: To allow construction of a three -story 64 -unit senior apartment building in
an R -4 Multi - Family Residential zoning district.
Existing Land Use: Vacant Existing Zoning: R -4
Conforming Status: Use — Yes Structure — N/A
Site Characteristics: The subject property is located on a parcel bounded by Sylvan
Drive to the East, Wingate Drive to the north, and Penn Place Apartments to the west.
The subject parcel has been previously graded as part of the development of the
Wingate Subdivision and generally slopes to the southwest.
If granted, would use impact adjacent properties? No. The proposed 64 unit senior
housing development will not adversely impact adjacent properties as the area is
predominantly developed for multi - family residential. To the south is an existing
commercial service area served by Century Circle. Planning staff anticipates an
increase in vehicle trips from development of the project, but staff notes that the
existing R -4 zoning allows development of multi - family housing with no additional public
review.
Recommended conditions to alleviate negative impacts: None.
Is reasonable return or use limited without conditional use? No. The property can
still be developed under the existing R -4 Multi - Family Residential district.
If granted, would use benefit the community generally? Yes. The provision of
senior housing facilitates the continued growth and development of the city of Dubuque,
provides a mix of housing styles for Dubuque seniors, and increases the supply of
single - family residences in the area as seniors move from their existing single - family
homes.
Staff Analysis: The requested Conditional Use Permit is to allow construction of a 64-
unit three -story senior housing development. The site is approximately 4.25 acres in
area and 40 off - street parking spaces will be provided as part of the project.
The proposed development will be served by a future extension of Wingate Drive.
When completed, Wingate Drive will connect between Pennsylvania Avenue and
Sylvan Drive. Attached to this staff report is a site plan that shows the layout of the
Conditional Use Staff Report — West of the intersection of Sylvan and Century Drives
Page 2
proposed senior apartment complex and its attendant parking and grounds as well as
two elevations of the proposed building that shows the preliminary exterior design of the
structure.
The Unified Development Code allows senior housing as a conditional use in the R -4
District and allows the Zoning Board of Adjustment to determine the number of units in
a building. The UDC requires off - street parking based on a half -space per dwelling unit
for senior housing. The proposed development includes 40 off - street parking spaces in
front of the proposed building.
The Institute of Traffic Engineers (ITE) Trip Generation Manual provides information on
vehicle trips for specific land uses. The ITE uses information from actual developments
to determine trip generation rates. Unfortunately, only one study was available for
senior housing, and one available for congregate housing. Given the limited number of
studies, staff is estimating 2.0 vehicle trips per dwelling unit for senior housing. The
provision of 64 units yields an estimate of 128 average daily trips from the proposed
development. Planning staff believes this is a fair estimate given the age of the
residents and past experience with existing senior housing developments.
Planning staff does not anticipate a significant impact to adjacent properties other than
a small increase in the number of vehicle trips on the surrounding street system. The
surrounding property is primarily developed for multi - family residential, except to the
south where commercial service type businesses are served by Century Circle.
Planning staff recommends that the Zoning Board of Adjustment review Section 8 -5.4
of the UDC that establishes the criteria for granting Conditional Use Permits.
Prepared by:
Reviewed: sV /A Date: ,/ f / /C)
Dubuque
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TI—IS CITY OF
DUB E
Masterpiece on the Mississippi
Vicinity Map
Applicant: 3 Diamond Development
Location: West of the intersection of
Sylvan & Century Drives
Base Data provided by Dubuque County GIS
N
Legend
Proposed 3 Diamond LLC Development - 3.113 Acres
1
October, 2009 Dubuque Rental Market Overview prepared
by Real Property Research Group (RPRG) for the Iowa Finance Authority
The report's overall conclusions and recommendations regarding senior housing are
summarized below. The report's executive summary is attached.
Demographic Trends
The 2009 Claritas population by age indicates that the Dubuque market area is slightly
older than Dubuque County with median ages of 38 and 37, respectively. Given the
number of smaller colleges and Universities located in Dubuque, the Dubuque market
area has a slightly higher percentage of its population between the ages of 18 to 24
years (11.4 percent versus 10.6 percent). Additionally, the Dubuque market area
contains a higher percentage of its population in each of the three age cohorts age 65
and older.
Among senior householders age 62 and older, the 2009 estimated median income in
the market area is $33,317, which is 77.6 percent of the overall median. Within the
Dubuque market area, over one - quarter (26.4 percent) of all senior households (62 +)
earn Tess than $25,000.
Competitive Rental Market
Combined, the eleven senior LIHTC communities offer 436 total units of which 26 or 6.0
percent were reported vacant. It is important to note that 19 of the 26 total vacancies
are at one service- enriched community, Oak at Park Place. By excluding this property,
the overall senior vacancy rate drops to 1.8 percent. Overall, more than half of the
senior communities' surveyed (six properties) were at 100 percent occupancy at the
time of survey. Additionally, six properties reported waiting lists of varying length.
Conclusions
Among senior households 62 and older, a net demand exists for 150 rental units in the
Dubuque market area. Subtracting out 95 percent of senior units currently in the
pipeline, an excess demand for 110 units exists. Based on the number of senior units
constructed over the past five years, the need for additional senior housing is not as
paramount as in the general rental market. Given that most of the recent senior supply
has focused on the market rate side of senior housing the most likely opportunity for
additional senior oriented rental units lies in the affordable (income restricted) market.
Given the sizeable senior household base, senior rental communities are common
within the City of Dubuque; however, a number of these communities have been
constructed within the past five years and it appears senior housing may have been
developed at the expense of family oriented units. Despite the additions to supply,
senior occupancy rates have remained strong; however, the overall senior rental
appears to be in balance.
I. Executive Summary
Real Property Research Group, Inc. has been retained by the Iowa Finance
Authority (IFA) to conduct a rental market overview for the city of Dubuque in Dubuque
County, Iowa. Michael Riley, Analyst, conducted fieldwork and data collection on
October 19 and 20 , 2009 which included a physical inspection of the City of Dubuque
and its surrounding areas. The Executive Summary follows and is based on IFA's
market study guidelines.
Study Description
Over the past year and half, several major employers announced plans for new
or expanded facilities in the city of Dubuque. The largest and most significant of these
announcements was IBM which opened its new technology services delivery center on
August 25, 2009. In total, IBM is expected to add up to 1,300 new jobs through 2010
with an estimated 600 new workers to be hired by the end of this year. Combined with
Hormel Foods, which will finish construction on a new processing plant in January of
2010, the city will experience a total employment increase of approximately 1,500 over
an eighteen month time period. The purpose of this study is to determine the adequacy
of the existing housing supply in meeting the needs of the area's increasing household
base.
Area Overview
Located in eastern Iowa along the western banks of the Mississippi River, the city
of Dubuque is positioned adjacent to both the Illinois and Wisconsin state lines. As the
seat of Dubuque County, the city of Dubuque is the major population center of the tri-
state area which includes a number of smaller cities and municipalities.
The city of Dubuque is roughly made up of five districts which include downtown,
College Grandview, West End, South End, and Eagle Point (North End).
• Downtown District - Development within this area includes a mixture of
commercial, industrial, and residential land uses which form a number of
unique neighborhoods and districts. Most buildings in this area are
significantly older than in other portions of the city though recent
revitalization has lead to a number of renovated and restored structures.
Despite the higher overall density of development, housing in downtown
Dubuque includes a number of historic single - family detached homes,
many of which are in disrepair. Over the past few years renovated loft-
style apartments above store fronts and warehouses have become more
common as city officials promote a live / work campaign to rejuvenate the
downtown core and its surrounding neighborhoods.
• College Grandview - With larger lot sizes and fewer streets, the housing
stock is a mixture of single - family homes, duplexes, and smaller multi-
family structures. This district is home to four colleges / seminary
schools: Emmaus Bible College, Clark College, Loras College, and the
University of Dubuque and contains some larger -scale multi - family
developments managed by the colleges as student housing.
• West End - As the newest growth area of the city, the West End is
distinctly different from other city neighborhoods as the nature of
development becomes unmistakably suburban. Single- family attached
and detached homes account for a significant proportion of the housing
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stock with larger multi - family apartment communities also scattered
throughout the area.
• South End — This District is largely residential consisting primarily of
single - family detached neighborhoods and scattered Tight- commercial
development. South End is also home to several parks and recreational
areas including Louis Murphy Park, E. B. Lyons Nature Center, and
Mines of Spain Recreation Area.
• Eagle Point (North End) - This portion of Dubuque contains many of the
city's manufacturing facilities in addition to residential neighborhoods
which travel northwest and northeast along Central Avenue and Lincoln
Drive, respectively. As a result, the area maintains the more urban feel of
downtown with housing that is generally older and in poorer condition
compared to other portions of the city.
A major economic development project in the preliminary stages of development
is the Historic Millwork District, which will act as the foundation for the City of Dubuque's
ongoing revitalization of downtown. Dominated by empty warehouses and industrial
buildings from the turn of the century, the redevelopment of the Historic Mill Work District
is anticipated to include a total of 634 housing units, 359,000 square feet of office /retail
space, 1,400 parking spaces, two urban plazas, and a Iandform park scheduled in three
phases.
Overall, the planned Historic Millwork District redevelopment has the potential to
create a significant economic impact as it will provide residents and businesses with
opportunities for growth and improved efficiency. Its development will also help to meet
the demand for new rental housing downtown with its convenience to many major
employers. With the opening of IBM's technology services delivery center located just a
short distance west, the location and design of this mixed -use community appears ideal
to meet the needs of the growing and changing economy.
Demographic Trends
• The 2009 Claritas population by age indicates that the Dubuque market area is
slightly older than Dubuque County with median ages of 38 and 37, respectively.
Given the number of smaller colleges and Universities located in Dubuque, the
Dubuque market area has a slightly higher percentage of its population between the
ages of 18 to 24 years (11.4 percent versus 10.6 percent). Additionally, the
Dubuque market area contains a higher percentage of its population in each of the
three age cohorts age 65 and older.
• Both the Dubuque market area and Dubuque County have a large percentage of
family households. Marriage rates are 51.4 percent in the Dubuque market area and
57.3 percent in Dubuque County. Children are present in 30.1 percent of the
Dubuque market area's households and 33.2 percent of the Dubuque County's
households.
• The Dubuque market area's renter percentage is higher the Dubuque County's,
overall. The estimated 2009 renter percentages are 31.4 percent in the Dubuque
market area and 25.4 percent in Dubuque County.
• Among householders age 62 and older, the renter percentages in both areas are
lower than among all households. The senior renter percentage is 24.2 percent in
the Dubuque market area and 19.3 percent in Dubuque County.
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• Approximately seventy -five percent of all renter households in the Dubuque market
area and Dubuque County contain one or two persons. An additional 11.3 percent
and 11.5 percent of renter households contain three persons in the Dubuque market
area and Dubuque County, respectively.
• Based on Claritas projections, the 2009 median income for all households living in
the Dubuque market area was $42,933, $4,061 or 8.6 percent lower than the
Dubuque County median of $46,993. The Dubuque market area has a higher
percentage of its householders in each income classification below $45,000.
• Among senior householders age 62 and older, the 2009 estimated median income in
the market area is $33,317, which is 77.6 percent of the overall median. Within the
Dubuque market area, over one - quarter (26.4 percent) of all senior households (62 +)
earn less than $25,000.
Economic Trends
• Dubuque County's at -place employment grew in eight of nine years from 1990 to
1999 adding a total of 7,030 jobs for an increase of 16.1 percent. Following this
period of growth, the county suffered a brief contraction in which at -place
employment declined by over 1,300 between 1999 and 2002. Beginning in 2003, the
Dubuque County economy expanded at through 2007 before losing over 220 jobs in
2008; however, this decline was relatively modest compared to many areas of the
country.
• Through the first quarter of 2009, Dubuque County's preliminary average at -place
employment shows a loss of 2,372 total jobs. While this figure is the most recent
measurement available from the U.S. Bureau of Labor Statistics, it includes natural
employment fluctuations in seasonal industries such as construction, natural
resources - mining, and leisure - hospitality. An analysis of the 2009 first quarter
average employment by sector reveals approximately 900 jobs lost during this period
are in these industries.
• Over the past eighteen years, Dubuque County's unemployment rate has tracked
just above the State of Iowa and consistently lower than the nation. Despite rising
gradually over the past eight years, Dubuque County's annual average
unemployment rate never surpassed 4.5 percent which it totaled in 2004. Due to the
national recession, Dubuque County's unemployment surged to 6.3 percent through
the second quarter of 2009; however, this is still over three full percentage points
below national unemployment rates and just 0.5 percentage points above the State
of Iowa.
Competitive Rental Market
• Compared to the 2000 Census, a higher proportion of rentals in 2009 are contained
within duplexes, structures with three to four units, and structures with 20+ units.
Overall, the rental stock in the Dubuque market area has increased in density
between 2000 and 2009.
• As of the 2000 Census, the median year built among owner occupied housing units
was 1956 in the Dubuque market area and 1962 in Dubuque County. Among renter
occupied households, the median year built was 1951 in the Dubuque market area
and 1952 in Dubuque County. From 1990 to 2000, only 6.9 percent of the Dubuque
market area's rental stock was constructed compared to 8.1 percent in Dubuque
County.
• The fifteen surveyed rental communities combine to offer 800 rental units. Only 14
units were reported vacant at the time of our survey resulting in an overall vacancy
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rate of 1.8 percent. Among the seven LIHTC communities, two of 226 units (0.9
percent) were reported available. Additionally, nine of the fifteen properties currently
maintain waiting lists.
• Given that the Dubuque rental stock contains a large proportion of Tower- density
scattered site rentals, many of which are independently owned, RPRG attempted to
contact companies or individuals who managed the largest number of units in order
to get an accurate picture of the current rental market. In total, the six management
companies surveyed manage 976 total rental units. All six companies reported
vacancy rates of Tess than five percent while three of the six companies reported 100
percent occupancy.
• The street rents at existing communities have been adjusted to account for rental
incentives and the inclusion of utilities to compute net rent. The average net
effective rent among the surveyed communities is $464 for a one bedroom unit, $614
for a two bedroom unit, and $662 for a three bedroom unit.
• The estimated market rents are $721 for a one bedroom unit, $881 for a two
bedroom unit, and $987 for a three bedroom unit. Adjustments for unit size were
based on proposed square footages of 700 for a one bedroom unit, 950 for a two
bedroom unit, and 1,300 for a three bedroom unit. Given the age of the existing
rental stock and tight rental market, a newly constructed rental community with
average features and amenities could expect to achieve rents at or near these
amounts.
• Combined, the eleven senior LIHTC communities offer 436 total units of which 26 or 6.0
percent were reported vacant. It is important to note that 19 of the 26 total vacancies are
at one service- enriched community, Oak at Park Place. By excluding this property, the
overall senior vacancy rate drops to 1.8 percent. Overall, more than half of the senior
communities' surveyed (six properties) were at 100 percent occupancy at the time of
survey. Additionally, six properties reported waiting lists of varying length.
Conclusions
• The overall economy of Dubuque County is relatively diversified with a historically
stable job base and generally low unemployment. Substantial layoffs in late 2008
and early 2009 are somewhat of a concern, though employment figures from the first
quarter of 2009 are likely exaggerated due to the seasonal nature of some
industries. As a portion of laid off workers have been called back to work, it is
possible at least a percentage of these job losses may be temporary.
• The impact of IBM and to a smaller extent Hormel cannot be understated as the
1,500 new jobs projected over the next year and a half will provide a boon to the
Dubuque County economy while bringing a significant number of new households to
the region. The location of IBM within downtown Dubuque is also significant as it
has the potential to spur additional growth in the surrounding downtown
neighborhoods.
• It is important to note that recent layoffs and decrease in at -place employment has
not negatively impacted the rental market in the Dubuque market area as vacancy
rates remain very low.
• Based on the general salary estimates for jobs at IBM, it is likely that few if any of the
households relocating to Dubuque will qualify for LIHTC units. As a result, most of
these households will add to the moderate income renter household base which
already exceeds tax credit eligible renters (50% to 60% of the AMI). Based on this
analysis, affordable market rate housing is the best option to meet the needs of
these incoming households.
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• Taking into account household growth, demolitions, and existing vacancies, a net
demand exists for 556 rental units in the Dubuque market area. Subtracting out 95
percent of the units currently in the pipeline, an excess demand of 306 units exists.
Given the influx of new households expected over the next fourteen months and
current vacancy rates, these estimates are likely conservative.
• Among senior households 62 and older, a net demand exists for 150 rental units in
the Dubuque market area. Subtracting out 95 percent of senior units currently in the
pipeline, an excess demand for 110 units exists. Based on the number of senior
units constructed over the past five years, the need for additional senior housing is
not as paramount as in the general rental market. Given that most of the recent
senior supply has focused on the market rate side of senior housing the most likely
opportunity for additional senior oriented rental units lies in the affordable (income
restricted) market.
• Given the sizeable senior household base, senior rental communities are common
within the City of Dubuque; however, a number of these communities have been
constructed within the past five years and it appears senior housing may have been
developed at the expense of family oriented units. Despite the additions to supply,
senior occupancy rates have remained strong; however, the overall senior rental
appears to be in balance.
• The existing rental stock consists primarily of scattered site units which include
smaller -scale multi - family buildings, single - family detached homes, and duplexes.
Of the larger multi - family apartment communities that exist within the city, most are in
located in the western suburbs.
• On average, much of Dubuque's rental housing is old (built in the 50's, 60's and
70's), though many units have been renovated since their original construction. As is
the case in many renovations, some units lack modern features and amenities which
either could not be retrofitted or simply cost too much to include. Typically the
newest rental units available are single - family detached homes or duplexes as only a
few larger multi - family apartment communities have been constructed within the past
ten years.
• The distribution of rental housing throughout the city of Dubuque is relatively even
with a slightly higher percentage of rental units located in the more densely
developed portion of the city. Despite this fact, many of the rental units in and
around downtown contain government subsidies or are in poor condition. Quality
market rate housing, which is also affordable, is limited in the city, particularly
downtown. With the number of major employers located nearby, it is likely pent-up -
demand exists for rental units in this area.
• The market for general occupancy or family oriented rental housing is noticeably
tight in the Dubuque market area. Few vacancies exist among surveyed rental
communities with both market rate and affordable (income restricted) housing
performing equally well. On average, 1.8 percent of units were reported available
with many communities maintaining 100 percent occupancy and waiting lists.
• Average rents in Dubuque are generally modest and commensurate to the overall
unit size, features, and amenities offered. None of the family oriented communities
surveyed reported rents exceeding $1,000 per month. A newly constructed rental
community with reasonable features and amenities could expect to achieve rents at
or near $721 for a one bedroom unit, $881 for a two bedroom unit, and $987 for a
three bedroom unit assuming unit sizes of 700, 950, and 1,300 square feet,
respectively.
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Overall Conclusion and Recommendation
Based on current market conditions and projected employment growth in
Dubuque, we believe significant demand exists for additional housing in the local area.
Given the relatively low HUD Median Income and the estimated salary range of IBM
jobs, market rate rental housing appears to have the most demand. Income restricted
rental units, such as those with Low Income Housing Tax Credits, would not alleviate
future demand from IBM related household growth. While some of these workers will
prefer homeownership, affordable single family detached homes are readily available in
the market area with several new communities under construction.
Based on conservative household estimates, insufficient rental housing exists to
support new households. The lack of significant vacancies coupled with the lack of
modern multi - family rental communities indicates pent up demand for high quality market
rate rental units. Based on our demand estimates, the Dubuque market area is in need
to 300 to 400 additional rental units over the next two to three years. The ideal units
would:
• Be located near or accessible to downtown given current redevelopment
efforts and IBM's location.
• Modern amenities and finishes including dishwashers, disposals, and
washer /dryer connections. Community amenities should include a community
room, business center, fitness center, and playground.
• Have rents of roughly $721 for a one bedroom unit, $881 for a two bedroom
unit, and $987 for a three bedroom unit. It is important to note estimated rents
were based on the existing rental stock which is generally older and without
top of the line features or amenities. Depending upon the product to be
constructed and the location within the community it may be possible to
achieve rents as much as ten percent higher than these estimates.
• Have minimum unit sizes of 700 square feet for a one bedroom unit, 950
square feet for a two bedroom unit, and 1,300 square feet for a three
bedroom unit.
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