Downtown Housing Incentive Program_Bonson Block, 44 Main LLC356
Bonson Block, LLC
$80,000
Main Street
8
Grant
44 Main Street
44 Main, LLC
24
$240,000
Grant
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Additional Recommendation for Second Round of Downtown Housing
Incentive Awards and recommendations to close applications.
DATE: October 8, 2010
In November 2009, the City Council approved the creation of an incentive pool to
encourage new market -rate housing within the Greater Downtown Urban Renewal
District. In the first round of applications, the City received fifteen applications for
assistance. Of those, 5 projects were approved. A second request for proposals was
approved in the Spring of 2010 and nine applications were received.
To date, in both rounds of funding $427,000 in grants and $224,000 in loans have been
approved through the program encouraging 70 new housing units in the downtown
area. $1,849,000 remains in the incentive program.
Economic Development Director David Heiar is recommending the following projects be
approved to receive certain incentives to create new housing units within the Greater
Downtown Urban Renewal District:
Address
Developer
Housing
Dubuque
hitel
All- Ametcaclty
2007
Assistance
Approval of these two applications would keep $1,529,000 available in the Downtown
Housing Incentive Fund.
Dave Heiar further recommends authorization to negotiate contracts for award of the
above projects and allow the City Manager to execute agreements with the property
owners to commit to the market rate housing unit creations. It is also recommended
that the City Council approve a resolution closing out the second round of the incentive
program and authorize staff to prepare an RFP for a third round of applications to the
Downtown Housing Incentive program for the remaining $1,529,000 initially set aside for
this program.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Mic aeI C. Van Milligen
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director ()1f
SUBJECT: Additional Recommendation for Second Round of Downtown Housing
Incentive Awards and recommendation to close applications
DATE: October 1, 2010
Dubuque
katirl
All- Amedca
111 r
2007
INTRODUCTION
This memo is to provide additional recommendations from the second round of funding
to encourage new residential housing units in downtown Dubuque and to recommend
closeout of the second round of applications for the program.
BACKGROUND
On November 19, 2009, the City Council approved an assistance pool of funds to
encourage creation of new market -rate housing within the Greater Downtown Urban
Renewal District. The City received 15 applications for assistance. Of those, 5 projects
were approved for assistance. A second request for proposals was approved in the
Spring of 2010 and applications were due May 24, 2010. Nine applications were
received requesting over $3.2 million in incentives for the second round.
A selection committee has reviewed the applications. The committee included:
• Dave Heiar, Economic Development Director
• Rick Dickinson, Greater Dubuque Development
• Barry Lindahl, City Attorney
• Guy Hemenway, Assistant Planner
• Steve Brown, Engineering Project Manager
• Aaron DeJong, Asst. Economic Development Director
Proposals were evaluated on several criteria. The criteria included:
• Timeliness /Readiness
• Cost/Benefit
• Impact
• Additional benefits of proposed project (i.e. exterior rehab, historic preservation,
LEED, Commercial Development)
• Magnitude of other City financial assistance being requested
356
Bonson Block, LLC
8
$80,000
Main Street
Grant
44 Main Street
44 Main, LLC
24
$240,000
Grant
To date in both rounds of funding, $427,000 in grants and $224,000 in loans have been
approved through the program encouraging 70 new housing units in the downtown
area.
$1,849,000 remains in the incentive program.
DISCUSSION
The committee is recommending the following projects be approved to receive certain
incentives to create new housing units within the Greater Downtown Urban Renewal
District:
Address
Developer
Housing
Units
Assistance
Approval of these two applications would keep $1,529,000 available in the Downtown
Housing Incentive Fund.
The remaining applications for the second round are not being recommended for City
incentives, due to developers not receiving appropriate financial funding for their project
and /or not being able to meet the time requirements specified in the RFP.
In the meantime, several additional developers have inquired whether there would be a
third round of applications to receive incentives out of this program. Based on the
continued need for quality downtown rental housing units, I am recommending that the
City Council authorize staff to prepare an RFP for a 3 round of downtown housing
incentives, similar to the previous RFP's, but with extended completion deadlines.
RECOMMENDATION
The recommendation is to approve the attached resolution authorizing staff to negotiate
a contract for award to the above projects and allow the City Manager to execute
agreements with the property owners to commit to the market rate housing unit
creations. The resolution also closes out the second round of the incentive program,
and authorizes staff to prepare an RFP for a third round of applications to the Downtown
Housing Incentive program for the remaining $1,529,000 initially set aside for this
program.
F: \USERS \Econ Dev \Downtown Housing \RFP 2nd Round Memos\20101001 Housing RFP #2 recommend Closeout and rd 3
Memo.doc
Prepared by: David Heiar, Economic Dev Director, 50 West 13 Street, Dubuque IA 52001 563 589 -4393
Return to: Jeanne Schneider, City Clerk, 50 West 13 Street, Dubuque IA 52001 563 589 -4121
RESOLUTION NO. 415 -10
APPROVING AN AWARD TO BONSON BLOCK, LLC AND 44 MAIN, LLC FROM THE
DOWNTOWN HOUSING INCENTIVE POOL TO CREATE NEW MARKET -RATE
HOUSING UNITS WITHIN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT
AND RECOMMEND CLOSEOUT OF THE SECOND ROUND OF APPLICATIONS FOR
THE INCENTIVE PROGRAM AND AUTHORIZING THE CITY MANAGER TO SOLICIT
PROPOSALS FOR A THIRD ROUND OF APPLICATIONS
Whereas, the City of Dubuque has been successful in encouraging job creation and
retention in the community for several years; and
Whereas, many of the City of Dubuque's new residents have a strong desire to live
near work and entertainment; and
Whereas, a significant shortage of quality market -rate rental and owner - occupied
residential units exists and efforts are needed to encourage new development of such
units; and
Whereas, several downtown residential development projects need financial
assistance to secure funding for such project; and
Whereas, the City received several applications for assistance from a Request for
Proposals due May 24, 2010; and
Whereas, such proposals have been reviewed by a recommendation committee.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City Council approves the following projects to receive financial
356 Main Street
Bonson Block, LLC
8
$80,000
Grant
44 Main Street
44 Main, LLC
24
$240,000
Grant
assistance for the creation of market -rate housing units within the Greater Downtown
Urban Renewal District:
Address
Jeanne F. Schneider, City Clerk
Developer
Housing
Units
Section 2. That the City Manager is hereby authorized and directed to execute an
Incentive Agreement with Bonson Block, LLC and 44 Main, LLC and recommend closeout
of the 2 nd round of the Incentive Program and authorize staff to prepare an RFP for a 3rd
round of applications.
Passed, approved and adopted this 18 day of October, 201
Assistance
Roy D. Buol, Mayor
F: \USERS \Econ Dev \Downtown Housing \RFP Resolutions\20101007 Resolution Housing Award Rnd 3 #2 recommend closeout.doc