Engine House #1 MT, LLC Lease_Recinding Resolution 39-11Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Rescind Public Hearing for lease with Engine House #1 MT, LLC
DATE: February 15, 2011
Dubuque
bitill
All - America City
2007
Economic Development Director Dave Heiar recommends the City Council rescind the
Public Hearing to enact a lease between the City of Dubuque and Engine House #1 MT,
LLC. (a subsidiary of Dubuque Initiatives) for the former housing department offices.
Dubuque Initiatives has been working with a Historic Tax Credit Attorney to help
structure the project to ensure the State and Federal Historic Tax Credits are realized
for the project. After review of the lease, the attorney feels that additional changes
should be made before it is taken to the City Council for approval. Once these changes
have been made, staff will again ask the Council to set a new date for this public
hearing.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mich el
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
C. Van Milli
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director`
SUBJECT: Rescind Public Hearing for lease with Engine House #1 MT, LLC
DATE: February 14, 2011
Dubuque
heal
AIHlmedcaCIty
1
2007
INTRODUCTION
This memorandum asks to rescind the Public Hearing to enact a lease between the City of
Dubuque and Engine House #1 MT, LLC. (a subsidiary of Dubuque Initiatives) for the former
housing department offices.
BACKGROUND
The Housing Department moved into their new offices at the Federal Building in 2008 and since
that time their former offices on 18 Street have remained vacant. The Housing Department
released an RFP for ideas on re- utilization of the facility. The Crescent Community Health
Center and the Head Start program have identified an interest in leasing portions of the building.
The building will need to be renovated to accommodate these tenants. The goal is to historically
rehabilitate the building using historic tax credits as one of the revenue sources. To facilitate
additional funding from the State and Federal Historic Tax Credit (HTC) programs, the building
must be controlled by an entity eligible to receive HTCs.
The project is pursuing HTCs because there is a desire to rehabilitate the building back to its
historic condition much like it appeared when it was a fire station. This historic renovation will
add some cost to the project which can be offset by receiving HTCs. It is anticipated that this
rehabilitation project will also serve as a potential stimulus to enhance the renovation of other
buildings in this area.
A public hearing had been set for the February 22, 2011 council meeting to approve the lease
with Engine House #1 MT, LLC.
DISCUSSION
Dubuque Initiatives has been working with a Historic Tax Credit Attorney to help structure the
project so to ensure the State and Federal HTCs are realized for the project. He has reviewed
this lease and feels that additional changes should be made before it is taken to the City Council
for approval. Once these changes have been made, staff will again ask the Council to set a
new date for this public hearing.
RECOMMENDATION /ACTION STEP
I recommend approval of the attached resolution rescinding Resolution 39 -11 to hold a Public
Hearing on Disposal of Interest in Real Property to Engine House #1 MT, LLC.
F: \USERS \Econ Dev \18th Street Fire Station\20110214 Memo Rescind Notice of Lease.doc
Whereas, the Dubuque City Council approved Resolution 39 -11 which called for
a public hearing on a lease with Engine House #1 MT, LLC; and
Whereas, additional changes are needed to the lease which will require a
separate public hearing; and
Whereas, the previous resolution must be rescinded to cancel the public hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That this resolution is approved to rescind Resolution 39 -11 to
cancel the public hearing on a lease with Engine House #1 MT, LLC.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the
City Council of the City of Dubuque, Iowa, this resolution.
Passed, approved and adopted this 22 day of February, 2011.
Att
RESOLUTION NO. 63 -11
A RESOLUTION RESCINDING RESOLUTION 39 -11 TO HOLD A PUBLIC
HEARING REGARDING A LEASE WITH ENGINE HOUSE #1 MT, LLC.
eanne F. Schneider, City Clerk
F: \USERS \Econ Dev \18th Street Fire Station\20110222 Rescind Hearing Engine house Reso.doc
Roy D. Buol, Mayor