Downtown Housing Program Extension Request_Bonson's Block VenturesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Downtown Housing Program Extension for Bonson's Block Ventures, LLC
DATE: May 31, 2011
Economic Development Director Dave Heiar recommends City Council approval of an
extension to Bonson's Block Ventures, LLC, allowing the developer an additional six
months, until December 31, 2011, for project completion.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Downtown Housing Program Extension for Bonson's Block Ventures, LLC
DATE: May 31, 2011
INTRODUCTION
This memorandum presents for City Council approval to provide an extension for the
Downtown Housing Program grant for Bonson's Block Ventures, LLC. The City Council
is requested to adopt a resolution approving the extension.
BACKGROUND
On October 18, 2010, the City Council approved a Downtown Housing Incentive grant
of $80,000 to Bonson's Block Ventures, LLC. for the redevelopment of eight (8) market -
rate rental units in the Bonson Block building located at 356 Main Street (locally known
as the Guy Gard Building). The stipulations in the grant award stated that the project
must be under construction with at least 25% of the project completed by December 31,
2010 and the units created must be ready for occupancy by July 1, 2011.
DISCUSSION
Bonson's Block Ventures, LLC has been working on historic state and federal tax
credits, enterprise zone credits, sales tax rebates and TIF to assist them in the
development of this property and has estimated a capital investment of $1,767,500.
The delay in redevelopment of the market -rate units is primarily related to additional
environmental research which had to be completed prior to moving forward on the
project (i.e. asbestos abatement). Bonson's Block Ventures, LLC has requested an
extension which would provide for a project completion date of December 31, 2011 (see
attached email request).
The developer anticipates closing on the property in early June 2011. This is the same
developer who acquired and developed 21 market -rate residential units on the upper
floors of the Crust (formerly Bricktown).
RECOMMENDATION
I recommend that the City Council approve the extension to Bonson's Block Ventures,
LLC by adopting the attached resolution. This extension will provide the developer the
six more months to make a substantial investment in our downtown and create the eight
residential units as previously committed.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
Attachments
F: \USERS \Econ Dev \356 Main Street- Bonson Block \Downtown Housing Incentive\20110531_Bonson Block Housing Incentive
Extension Council Memo.doc
Prepared by: Aaron DeJong, Asst. ED Director, 50 West 13 Street, Dubuque IA 52001 563 589 -4393
Return to: Kevin S. Firnstahl, Acting City Clerk, 50 West 13 Street, Dubuque IA 52001 563 589 -4121
RESOLUTION NO. 177-11
RESOLUTION APPROVING AN EXTENSION FOR THE DOWNTOWN HOUSING
PROGRAM GRANT AWARD TO BONSON'S BLOCK VENTURES, LLC.Whereas, on May 23, 2010, the City received a Downtown Housing Incentive
Program application from Bonson's Block Ventures, LLC; and
Whereas, the City Council on October 18, 2010 approved and awarded a
Downtown Housing Incentive Program grant for $80,000 to Bonson's Block Ventures, LLC
for the redevelopment of 8 market -rate rental units; and
Whereas, on May 27, 2011 Bonson's Block Ventures, LLC's requested an extension
of the Downtown Housing Incentive grant award; and
Whereas, the City Council finds that the proposed extension is acceptable and
necessary to the growth and development of the downtown.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1.
Attest:
Kevi S. Firnsta 0 , Acting City Cler
Passed, approved and adopted this 6 day of June, 2011
An extension until December 31, 2011 for completion of market -rate
residential units for the Downtown Housing Incentive grant in the
amount of $80,000 to Bonson's Block Ventures, LLC is hereby
approved.
I
/ oy D. Buol, Mayor
F: \USERS \Econ Dev \356 Main Street- Bonson Block \Downtown Housing Incentive\20110531 Bonsons Block LLC Resolution Grant
David Heiar - Bonson
From:
To:
Date:
Subject:
Attachments:
Hi Dave,
<mdfbdog @aol.com>
<dheiar@cityofdubuque.org>
5/27/2011 3:30 PM
Bonson
Bonson Block Timeline_001 jpg
Thanks is advance for considering an extension of the City grants for new apartment development downtown
relating to the refurbishment of what is known as the Bonson Building (Bonson).
As you know, we developed the Cooper Building over the last year and with the support of the community and
other grants we have been privileged to turn a downtown landmark into a productive and historically significant
downtown Dubuque asset.
We intend to do the same with the Bonson building.
Page 1 of 1
My request is to extend the availability of the $10,000 per unit (8 new units) to help make the development of
Bonson possible. I am sure you are aware this grant in conjunction with historic state and fed tax credits,
enterprise zone credits, sales tax rebates and TIF's enable a private sector investor to "make the numbers work"
to develop Bonson. Your support is greatly appreciated.
Our delays relating to the development of Bonson were primarily related to discoveries in our due diligence which
included asbestos and the fact that a printing company had once been located nearby. This required additional
environmental research and as a result of the delays made it difficult to reach agreement with the current owner.
In addition, I wanted to be certain that the other grants previously mentioned were realized without a glitch.
Again, without this support from the City and State it would be virtually impossible to make the numbers work.
We are proud of what we have collectively accomplished at Cooper. We have turned a potentially beautiful
building into a downtown industry standard thanks to the cooperative support of the City of Dubuque, the State of
Iowa, Conlon Construction, the leadership of the downtown development of Dubuque and Dubuque Bank and
Trust. We are asking for the same support in the extension of the City of Dubuque new apartment grant. On our
end, we have committed about $2.5 million in equity and debt to the development of Cooper and look to
contribute another $1.7 million in equity and debt into Bonson.
Thanks again for your consideration of our grant extension request. Please see the attached expected timeline
for the refurbishment of Bonson.
Best Regards,
Mike
file: / /C: \Documents and Settings \dheiar \Local Settings \Temp \XPgrpwise \4DDFC39EDBQ... 5/27/2011
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