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Housing SRO HOME Funds S.PotterMEMORANDUM November 19, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Application from Scott Potter for HOME Program Funds Scott Potter has built two single reom occupancy (SRO) facilities on Garfield Avenue for Iow and moderate income men since 2000. He and his family manage these facilities, totaling 38 rooming units in two structures. Mr. Potter now intends to construct a third facility adjacent to the properties he owns on Garfield. He has purchased a derelict single family home that he intends to demolish; he then will construct a third SRO, with rooms for 12 Iow-moderate income men. At the November 17 City Council meeting, a requested rezoning for this purpose was approved. Mr. Potter further intends to request that this property be designated an Urban Revitalization District for purposes of City financial assistance through a 10-year property tax abatement on improvements, This status was conferred on both Davis Place properties previously constructed. This request has been justified by the Council for reason of the high cost of new construction and the low ($250/month) rents allowed under the terms of the previous financing secured by the Housing Department from the Iowa Department of Economic Development for the two Davis Place buildings Housing and Community Development Department Director David Harris is recommending City Council approval to support the Potter application to the Iowa Department of Economic Development for HOME Program funds for a 12 room SRO, adjacent to the existing Davis Place on Garfield Avenue. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director CITY OF DUBUQUE, IOWA MEMORANDUM 19 November 03 To: Mike Va~,~ ~lligen, City Manager From: David Harris, Housing and Community Development Department Re: Application from Scott Potter for HOME Program funds Introduction The purpose of this memorandum is to request the City Council's approval of the attached resolution, indicating support from the City for an application from Scott Potter to the Iowa Department of Economic Development for HOME Program funds. Discussion Scott Potter has built two single room occupancy (SRO) facilities, on Garfield Avenue, for Iow and moderate income men, since 2000. He and his family menage these facilities, totaling 38 rooming units in two structures. He has done an exemplary job in constructing and managing these facilities. He provides a variety of supportive services to the residents, including counseling and referrals to other social service agencies, and demonstrates a genuine level of concern for the welfare of his tenants. Mr Potter now intends to construct a third facility adjacent to the properties he oWns on Garfield; these consist of the two Davis Place SROs and a single family home, in which the project menager (his daughter) resides. He has purchased a derelict single family home, which he intends to demolish; he then will construct a third SRO, with rooms for 12 Iow-moderate income men. At the t7 November City Council meeting, a requested rezoning for this purpose was approved. Mr Potter intends to apply the Department of Economic Development for funds from the Home Investment Partnership (HOME) Program. Working with the Housing Department, we have met with IDED representatives, who have encouraged the application for this purpose. Mr Potter further intends to request that this property be designated an Urban Revitalization District, for purposes of City financial assistance through a 10-year property tax abatement on improvements. This status was conferred on both Davis Place properties previously constructed. This request has been justified by the Council for reason of the high costs of new construction and the Iow ($250/month) rents allowed under the terms of the previous financing secured by the Housing Department from IDED for the two Davis Place buildings, Recommendation It is recommended that the Council support the Potter application to IDED for HOME Program funds. The record that Scott Potter and his family have established during the past two years in management of the Davis Place facilities indicates that the proposed project should be similarly successful. Many very Iow income individuals have been significantly assisted through the interventions of the owner. Action Step The action requested of the City Council is to approve the attached resolution of support for HOME Program funding for a 12-room SRO, adjacent to the existing Davis Place on Garfield Avenue. RESOLUTION NO. 484-03 A RESOLUTION SUPPORTING AN APPLICATION FROM SCOTT POTTER TO THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FUNDS Whereas, Scott Potter has successfully developed and managed two single room occupancy (SRO) facilities on Garfield Avenue since 2000; and Whereas, Mr Potter has worked in collaboration with the Housing and Community Development Department in obtaining State and local funding for these facilities; and Whereas, a continuing need for single room occupancy housing remains, as evidenced by full occupancy and a waiting list at the Davis Place facilities developed by Mr Potter; and Whereas, Mr Potter intends to make application to the Iowa Department of Economic Development (IDED) for HOME Program funds to subsidize construction of another Garfield Avenue facility, for 12 rooming units for Iow and moderate income men NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City is supportive of the application from Scott Potter for HOME Program assistance from the Iowa Department of Economic Development. Passed, approved and adopted this 1st day of December, 2003. Tetrance M Duggan, Mayor Attest: Jeanne F Schneider, CMC City Clerk