Smart Growth DevelopmentMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Smart Growth Development
DATE: April 13, 2011
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micha / 7.-----
. Van Milligen
Dubuque
hd1
All-America City
I
2007
Smart Growth Development is a statewide initiative to improve the Historic Tax Credit
programs. This year the main objectives for Smart Growth Development are:
• Amending state legislation to 1) eliminate the $100,000 per residential unit cost
cap and 2) allow for up to 60- months' of qualified expenses to be eligible for the
tax credit, as opposed to the current 24 -month limitation.
• Creating an administrative rule with the Department of Cultural Affairs to allow for
a waiver of the 36 -month completion requirement for eligible projects.
• Working with Department of Cultural Affairs to develop ways to expedite the
review process and eliminate any surprises during the Part 3 review.
• Obtaining an extension of the 26% Federal Historic Tax Credit for disaster
recovery projects.
These changes will be beneficial for multiple projects across the state, but in Dubuque it
will particularly benefit the planned improvements in the Millwork District. This work
demands the daily attention of an advocate in the Iowa Assembly and a director to
manage members' input and weekly conference calls and research. Continuing the
successful work during this legislative session depends upon having the funds to pay a
staff director and advocate.
Economic Development Director Dave Heiar recommends City Council approval of the
request from Smart Growth Development Executive Director Jill Connors to commit
$2,000 for the efforts of Smart Growth Development as they work toward improving the
Historic Tax programs that fund many rehabilitation projects in the City of Dubuque.
Funds are available from Police Iowa District Court Fine Revenue.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Smart Growth Development
DATE: April 8, 2011
Dubuque
AN- Amedca City
2007
PURPOSE
The purpose of this memorandum is to request funding for the statewide initiative of Smart
Growth Development.
BACKGROUND
In 2009, several statewide developers combined resources and efforts to increase the cap on
the State Historic Tax Credit program from $20 million to $50 million. Many local people were
involved in this legislative effort, including developers who rely on Historic Tax Credits, Jill
Connors and Assistant City Manager Teri Goodmann. The IBM project provided much of the
needed momentum to convince legislators and the Governor that State Historic Tax Credits not
only enhance sustainable redevelopment of historic structures, but can also create jobs.
These efforts over the past couple of years have brought over $10 million in funding to the
Roshek Building rehabilitation and have kept several major Historic Millwork District projects
from having their credits recaptured in 2010, thus keeping the Millwork District project moving
forward instead of stalling indefinitely.
DISCUSSION
Much work still lies ahead for the continued effort to improve the Historic Tax Credit programs.
The main objectives for 2011 are as follows:
• Amending state legislation to 1) eliminate the $100,000 per residential unit cost cap
and 2) allow for up to 60- months' of qualified expenses to be eligible for the tax credit, as
opposed to the current 24 -month limitation.
• Creating an administrative rule with the Department of Cultural Affairs to allow for a
waiver of the 36 -month completion requirement for eligible projects.
• Working with Department of Cultural Affairs to develop ways to expedite the review
process and eliminate any surprises during the Part 3 review.
• Obtaining an extension of the 26% Federal Historic Tax Credit for disaster recovery
projects.
These changes will be beneficial for multiple projects across the state, but in Dubuque it will
particularly benefit the planned improvements in the Millwork District. This work demands the
daily attention of an advocate in the Iowa Assembly and a director to manage members' input
and weekly conference calls and research. Continuing the successful work during this
legislative session depends upon having the funds to pay a staff director and advocate.
Smart Growth Development is an Iowa non - profit organization with an annual budget between
$50 -$60 thousand dollars. The organization has a three member governing board which
includes:
John Gronen, Dubuque
Jim Walsh, Waterloo
Jason Stone, Des Moines
The organization has a director (Jill Connors) and a legislative advocate (David Adelman) and
has already obtained over $30,000 in funding commitments from the following groups,
organization and individuals:
JSA Development
Greater Cedar Valley Alliance
Jeffrey Morton Associates
Gronen Restoration
Mike Darnall
Oskaloosa Development
Weinberg Investments
Dubuque Initiatives
Wilmac Properties Co.
World Food Prize Foundation
Orchestrate Hospitality
Hubbell Realty Co.
Invision Architecture
City of Des Moines
Sustainable Neighborhood Builders
Fischer Companies
Drake Law Firm, PC
New Market Investors
Ryan Companies
American Trust & Savings
Waterloo, IA
Waterloo, IA
Dubuque, IA
Dubuque, IA
Burlington, IA
Oskaloosa, IA
Sioux City, IA
Dubuque, IA
Dubuque, IA
Des Moines, IA
Des Moines, IA
West Des Moines, IA
Des Moines, IA
Des Moines, IA
Dubuque, IA
Dubuque, IA
Dubuque, IA
Vienna, VA
Cedar Rapids, IA
Dubuque, IA
In order to reach Smart Growth Development's target budget of $60,000 this year, the non - profit
is requesting the supporting municipalities with populations over 50,000 contribute $2,000 (see
attached letter).
RECOMMENDATION
That the City commit $2,000 for the efforts of Smart Growth Development as they work toward
improving the Historic Tax programs that fund many rehabilitation projects in the City of
Dubuque. According to Budget Director Jenny Larson the funding can be taken from Police
Iowa District Court Fine Revenue.
F:\USERS\Econ Dev \Smart Growth Development\20110408 Smart Growth Development Council memo.doc
Mike,
With and on behalf of Board Members of Smart Growth Development, I am writing to submit
a request to the City of Dubuque for financial support of this statewide coalition's work. Your
contribution to Smart Growth Development today will make the difference between essential,
focused improvements to Iowa's State Historic Tax Credit program and leaving the program's
future and structure to chance.
What has SGD accomplished in the past two years with financial contributions
from its stakeholders?
Expanded Iowa's State Historic Tax Credit program in 2009 to $50 million.
Improved its administrative rules in 2009 to make the funding stream more predictable.
Eliminated unintended prejudice against large projects (prior 10% threshold) in 2010.
These Improvements brought over $10 million In funding to the Roshek Building rehabilitation
and have kept several major HMD projects from having their credits recaptured in 2010, thus
keeping the Millwork District project moving forward instead of stalling Indefinitely.
Much work still remains! Our main objectives for 2011 include:
Amending state legislation to 1) eliminate the $100,000 per residential unit cost cap
and 2) allow for up to 60- months' of qualified expenses to be eligible for the tax credit,
as opposed to the current 24 -month limitation.
Creating an administrative rule with the Dept. of Cultural Affairs to allow for a waiver
of the 36 -month completion requirement for eligible projects.
Working with Dept. of Cultural Affairs to develop ways to expedite the review
process and eliminate any surprises during the Part 3 review.
Obtaining an extension of the 26% Federal Historic Tax Credit for disaster
recovery projects.
These changes will be beneficial for multiple projects across the state, but in Dubuque it will
paiticu/arly benefit the planned improvements in the Millwork District
This work demands the daily attention of an advocate in the Iowa Assembly and a director to
manage members' input and weekly conference calls and research. Continuing our work this
session depends upon having the funds to pay staff director and advocate.
In order to reach Smart Growth Development's target budget of $60,000 this year, we are
suggesting that supporting municipalities with populations over 50,000 contribute $2,000.
Thank you for your consideration of this request for support as we look forward
to continuing to provide valuable service for the City of Dubuque.
Jill Connors, Executive Director
cv,ka
SMARTGROWTH
DEVELOPMENT
-John Gronen, President (Gronen Restoration, Dubuque)
Jim Walsh, Vice President (JSA Development Waterloo)
-Jason Stone, Treasurer (Davis Brown Law, Des Moines)
11 March 2011
Contact - Jill Connors, Executive Director • jill.connors@ smartgrowthdevelopment.ora . 563.580.1784