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Support for Dubuque Initiatives Rehabilitation Project at 1739-1763 Central AvenueCity of Dubuque City Council Meeting Consent Items # 8. Copyrighted July 6, 2021 ITEM TITLE: Supportfor Dubuque Initiatives Rehabilitation Projectat 1739-1763 Central Avenue SUMMARY: City Manager recommending support for the Dubuque Initiatives grant application to the Iowa Finance Authority for the use of National Housing Trust Fund grant dollars to complete a rehabilitation project at 1739-1763 Central Avenue by Chris Richard. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: FIN ik[91:ILy,121zk ] Description Type Support for 1739-1763 Central Avenue Project-MVM City Manager Memo Memo Staff Memo Staff Memo Letter of Support Supporting Documentation THE C Dubuque DUUB-.-*.-TE *Awiu Ciq 1I. ' I�� iece on the Mississippi Masterpiece PP zoo�•zoi 2-2013 zoi7*2019oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Support for Dubuque Initiatives Rehabilitation Project at 1739-1763 Central Avenue DATE: June 29, 2021 Economic Development Director Jill Connors is transmitting information on a Dubuque Initiatives grant application to the Iowa Finance Authority for the use of National Housing Trust Fund grant dollars to complete a rehabilitation project at 1739-1763 Central Avenue by Chris Richard. The project will bring 7 (4 - 2 bedroom and 3 — 3 bedroom) new quality, affordable units into the market aimed at rehousing people and families most in need. Jill Connors recommends City Council support of the grant application. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director THE CITY OF E Masterpiece on the Mississippi Dubuque AII•Amerin City NniK���i rnz: u;v�ur 2007-2012.2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Support for Dubuque Initiatives Rehabilitation Project at 1739-1763 Central Avenue DATE: June 28, 2021 INTRODUCTION This memorandum provides information on a Dubuque Initiatives grant application to the Iowa Finance Authority for the use of National Housing Trust Fund grant dollars to complete a rehabilitation project at 1739-1763 Central Avenue. BACKGROUND Dubuque Initiatives (DI) is a local economic development non-profit focusing on downtown development projects. Dubuque Initiatives, Inc. is a sustainable, non-profit organization, working as a community partner and catalyst, to undertake challenging projects involving job creation and/or community revitalization that supports a viable, livable and equitable community. Dubuque Initiatives takes on projects that otherwise would not be feasible. DISCUSSION In an effort to revitalize areas of the Central Avenue Corridor, the DI board is partnering with Chris Richard by financing certain of the developer's Central Avenue projects. One of these projects is the redevelopment of 1739-1763 Central Avenue. The main objective of this project is to bring 7 (4-2 bedroom, 3 — 3 bedroom) new quality, affordable units into the market — aimed at rehousing people and families most in need. This project will also keep the historic integrity of the exterior by replacing the upper floor windows to match the original openings and style of the time period it was built. The high ceilings at the 1739 location will give the finished product a very distinctive look. The 1700 block of Central is planned to undergo a dramatic revitalization over the next couple years. This project will be the kickstart of the block and will silence the stigma of gentrification that sometimes comes with a large-scale rehab of a block. The developer has been working closely with Community Solutions of Eastern Iowa (CSEI) and the Eastern Iowa Regional Housing Authority (EIRHA) and the City of Dubuque Housing & Community Development Department to determine need for the project. CSEI manages the Emergency Shelter Grant Program and the Special Needs Assistance Program in Dubuque, Dubuque County and Delaware County. Their waiting list data is as follows: Referral Access List (Dubuque County only): 40 households waiting for assistance (not considered homeless but are eligible for some type of assistance); Homeless prevention list (Dubuque & Delaware Counties): 29 households waiting for assistance (about to be homeless); Homeless Coordinated Entry list (Dubuque & Delaware Counties): 19 households waiting for assistance (considered homeless). In total CSEI has 88 households that are at the target income level for the National Housing Trust Fund program of 30% or below the County Median Income. Additionally, EIRHA manages the Section 8 Housing Voucher program for Dubuque County. They have 223 applicants on the waiting list from the City of Dubuque for Section 8 housing. They have an additional 69 people on the waiting list from Dubuque County outside the Dubuque City limits. Participants for the Section 8 Voucher program must be at or below 50% of the County Median Income. This project meets two of the City Council's 2020-2022 Top Priorities — 1) Affordable Housing Creation and 2) implementation of the Equitable Poverty Prevention Plan. The application requests letters of support for the project from multiple local organizations. City staff have provided the attached letter. RECOMMENDATION/ ACTION STEP I respectfully request Mayor and City Council support of this grant application. We look forward to reporting back in the near future on the results of this application. 2 THE CITY OF D UB TE Masterpiece on the .Mississippi To Whom it may concern, Dubuque M-AmMo ft max sni : ii.e a 2007.2012.2013 2017*2019 June 28, 2021 City Manager's Office City Hall 50 West 13th Street Dubuque, IA 52001-4845 Office (563) 589-4110 Fax (563) 589-4149 TTY (563) 690-6678 ctymgr@cityofdubuque. org www.cityofdubuque.org The City of Dubuque supports the Dubuque Initiatives project at 1739-1763 Central Avenue in Dubuque. City Council's 2020-2022 Top Priorities include City actions in support of Affordable Housing Creation and the implementation of the recently adopted Equitable Poverty Prevention Plan. The 1739-1763 Central Avenue project meets these objectives. The project is located along the Central Avenue Corridor, which is in the Washington Neighborhood, where many of our low-income residents live. Having additional affordable housing stock in this area of town meets a housing need in an area where ownership per capita of a personal vehicle is lower than the rest of the community. The property is less than two blocks from three bus stops. The City Council has also identified the Central Avenue Corridor as a priority area for redevelopment and economic support. The buildings along the corridor have experienced decades of disinvestment and are ripe for redevelopment. In 2018-2019, the City had prepared a Streetscape Master Plan for the area. The improvement of the exterior of these buildings promotes the aesthetics identified as important in that plan. The City of Dubuque has several grant programs that are designed to assist this sort of project for the planning, design, and mixed -use rehabilitation of the buildings. The project would be eligible for up to $130,000 for these purposes. In the anticipation of a quality rehabilitation of these buildings by Dubuque Initiatives and developer Chris Richard, City staff will recommend the award of these grants. The project is also located in an Urban Revitalization Area, making it eligible for tax increment abatement for 10 years. The City is pleased to lend its support to this important project. Sincerely, t� +'t Mic ael C. Van Milligen City Manager MCVM:jc Service People Integrity Responsibility Innovation Teamwork