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Historic Pres Loan $200,000 5~ ~ck~ MEMORANDUM r:, , ; "\ November 30, 2004 TO: The Honorable Mayor and City Council Members lv FROM: Michael C. Van Milligen, City Manager SUBJECT: Historic Preservation Revolving Loan Fund - $200,000 General Obligation Capital Loan Note In 2001 the City Council created the Historic Preservation Revolving Loan Fund, approved the program guidelines recommended by the Historic Preservation Commission, and allocated $200,000 in Urban Development Action Grant (UDAG) funds. The City council challenged the Historic Preservation Commission to raise an additional $200,000 to equal the $400,000 allocation they had recommended to the City Council. The purpose of the Historic Preservation Revolving Loan Fund is to support historic preservation in the four primarily residential historic districts - Cathedral, Jackson Park, Langworthy and West 11th Street - as a complement to the Downtown Rehabilitation Loan Program available for the Old Main Historic District, which is primarily commercial. Planning Services Manager Laura Carstens recommends approval of an offer by Premier Bank to provide $200,000 to the City of Dubuque for 10 years, interest free, for the Historic Preservation Revolving Loan Fund. It is further recommended that a public hearing be set for December 20, 2004. This offer would be financed with a $200,000 General Obligation Capital Loan Note. When the 10 years are up and the repayment is due to Premier Bank, it would be paid back from the loan repayments (and 20% of the original $200,000 in UDAG money to cover any delinquencies). The $200,000 General Obligation Capital Loan Note is the security being required by the bank in case not enough remains after delinquencies to pay the $200,000 obligation. I concur with the recommendation and respectfully request Mayor and City Council approval. /ìl l/{ h J( ( Ld./ (ill lclf{ Michael C. Van Milligen -.... MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager 5~ ~ck~ MEMORANDUM December 1,2004 TO: FROM: Michael Van Milligen, City Manager Laura Carstens, Planning Services Manager RE: Historic Preservation Revolving Loan Fund -- $200,000 General Obligation Capital Loan Note Introduction This memorandum presents for City Council review and approval an offer by Premier Bank to provide $200,000 to the City of Dubuque for 10 years, interest free, for the Historic Preservation Revolving Loan Fund. This offer would be secured with a $200,000 General Obligation Capital Loan Note. The City Council is asked to set a public hearing for authorization of a Loan Agreement and issuance of the General Obligation Capital Loan Note for December 20, 2004. Background In its November 2000 report to the City Council on the Review and Update of the Historic Preservation Ordinance, the Historic Preservation Commission recommended creation of a Historic Preservation Revolving Loan Fund with total funding of $400,000. In 2001 the City Council created the Historic Preservation Revolving Loan Fund, approved the program guidelines recommended by the Commission, and allocated $200,000 in Urban Development Action Grant (UDAG) funds. The City Council then challenged the Commission to raise the additional $200,000. The purpose of the Historic Preservation Revolving Loan Fund is to support historic preservation in the four primarily residential historic districts -- Cathedral, Jackson Park, Langworthy and West 11th Street -- as a complement to the Downtown Rehabilitation Loan Program available for the Old Main Historic District, which is primarily commercial. The Historic Preservation Revolving Loan Fund provides low interest loans to property owners at any income level on a competitive basis for exterior rehabilitation projects that meet the Secretary of the Interior's Standards for Rehabilitation. Priority is given to projects that save, restore or reconstruct original building elements, using original materials that reflect the architectural character or significance of the property. Loans are for up to $25,000 at 3% for 10 years, with a limit of one loan per building or $25,000 maximum in multiple loans per building. Within the first year, the Historic Preservation Commission awarded all $200,000 in the Revolving Loan Fund for rehabilitation projects. City staff and the Commission continue to see interest in this popular loan program from property owners in the historic districts. A brochure describing the Historic Preservation Revolving Loan Fund is enclosed. Historic Preservation Revolving Loan Fund Page 2 Discussion Premier Bank has offered to provide $200,000 to the City for 10 years, interest free for the Historic Preservation Revolving Loan Fund. The $200,000 would be paid back at the end of the 10 years through loan repayments (and 20% of the original $200,000 UDAG money to cover any delinquencies) using no City resources. Premier Bank has requested that they be given recognition for this contribution, for their marketing. City staff in the City Manager's Office and the Planning Services, Economic Development, Housing and Community Development, Legal and Finance Departments evaluated this offer. The City would accept the money from Premier Bank, and fold it into our existing Historic Preservation Revolving Loan Fund (which would then be capitalized at $400,000). The funds would be loaned out, paid back and re-Ioaned. The City's Housing Rehabilitation Division will continue to process these loans in-house. In cases where the borrower's income exceeds HUD eligibility standards, staff time will be charged to the Rental Rehab Program repayment loan revenue account. When the 10 years are up and the repayment is due to Premier Bank, it would be paid back from the loan repayments (and 20% of the original $200,000 in UDAG money to cover any delinquencies). The $200,000 General Obligation Capital Loan Note is the security being required by the bank in case not enough remains after delinquencies to pay the $200,000 obligation. Premier Bank's Board of Directors has approved the Loan Agreement. The City's Bond Counsel, William Noth, has provided guidance on the proceedings for approval of the Loan Agreement and $200,000 General Obligation Capital Loan Note. His instructions are enclosed. Recommendation The Historic Preservation Commission has recommended that the City accept Premier Bank's offer. City staff concurs with the Commission's recommendation. I recommend that the City Council approve the offer by Premier Bank to provide $200,000 to the City of Dubuque for 10 years, interest free, for the Historic Preservation Revolving Loan Fund. I further recommend that this offer be secured with a $200,000 General Obligation Capital Loan Note under the terms of the Loan Agreement. The City Council is asked to set a public hearing for approval of the Loan Agreement and $200,000 General Obligation Capital Loan Note for December 20, 2004. Enclosures cc Jeffrey Mozena, PresidenVCEO, Premier Bank Scott Dalsing, Vice President Commercial Lender, Premier Bank David Stuart, Chairperson, Historic Preservation Commission Barry Lindahl, Corporation Counsel Dawn Lang, Budget Director Kenneth TeKippe, Finance Director David Harris, Housing and Community Development Department Director Joleen Patterson, Housing Rehabilitation Supervisor Planning Services Department City Hall 50 West 13th Street Dubuque, Iowa 52001-4864 (563) 589-4210 office (563) 589-4221 fax (563) 690-6678 TDD P lanning@cityofdubuque.org www"cityofdubuque"org D~ ~ck~ November 23, 2004 The Honorable Mayor and City Council City of Dubuque City Hall - 50 W. 13th Street Dubuque, IA 52001 RE: Historic Preservation Revolving Loan Fund Dear Mayor and City Council Members: This letter transmits the recommendation of the Historic Preservation Commission to the offer by Premier Bank to provide $200,000 to the City of Dubuque for 10 years, interest free, for the Historic Preservation Revolving Loan Fund. On March 6, 2001 the City Council adopted the creation of a $400,000 Historic Preservation Revolving Loan Fund (HP RLF) to provide low interest loans to property owners at any income level in the four residential historic districts, as recommended by the Historic Preservation Commission and the Preservation Task Force. The Historic Preservation Commission was challenged to find the additional $200,000 to complete the $400,000 funding level we originally recommended. The Commission is excited about the opportunity that Premier Bank's offer brings to the City's historic preservation efforts. The Historic Preservation Revolving Loan Fund has been very well-received by owners of property in the Cathedral, Jackson Park, Langworthy and West 11 th Street Historic Districts. This additional funding will enable the Commission to continue to promote appropriate rehabilitation and preservation of historic structures in these districts. The Historic Preservation Commission unanimously recommends acceptance of Premier Bank's offer to help finance the Historic Preservation Revolving Loan Fund. Sincerely, ~~& ~^*" /~ David Stuart, Chairperson Historic Preservation Commission Service People Inte¡;.-ity Responsibility InnovaHon Teamwo,k . g ~ .!I i Š <» II ...., J ~ ,g ~! ~ 1 j j. ¡ i i æ ¡ i ; i æ ! :~¡¡i: !~t!i;¡ ~ ~ I - ¡ e==.55i S ~ J J!I i j t ¡ I a I ¡ ! i j ~ € ¡; I! .!! ~ lit ~ ~¡ ~ ~ 18 r ~icant Eligibility! The owner of any property at least 50 years old and located in Jackson Park, Cathedral. W. 11th Street or Langworthy Historic Preservation Districts or des- ignated as a City Landmark I Loan AmounVTermsi tÐ Up to $25,000 ", $ 3%. in.terestrate . . 10 years Monthly prinCIpal and Interest payments begin after project completion, but not longer than 6 months after loan closing. Umit one loan outstanding per building. Work must be initi- ated within three (3) months and completed with six (61 months from date of Historic Preservation Com- mission approval. The Commission may grant addi- tional time, if needed secun1)1 Preferably at least a 2nd mortgage position and promissory note, or an amount not Ie exceed 100% of loan-"'-value. The property value will be based on the assessed value, or on the appraised value after ,mprovements if the assessed value is not a good indicator. Application Perlod Initial open enrollment for first 60 days of the fiscal year (July and August): applications accepted until all funds are committed Assistance with the des,gn rev,ew portion of the application is available during regular business hours by appointment at the Planning Services Department, 50 W 13th Street. Dubuque (City Halll and insured by the State of Iowa. Homeowners may do the work themselves: written quotes on the costs of materials must be prov,ded" Labor by homeowners is not covered. Incomplete applications w,lI not be processed êigit>!elmprovemen~ I Exterior work that results in property improvements that meet the Secretary of the Interior's Standards and Guidelines for Rehabilitation Work must meet the Secretary of the Interior's Standards and Guidelines for Rehabilitation and any specif,c design standards established for the pertinent HIStoric Preservation District A loan review committee of City Staff and Historic Preservat,on Commissioners will rank applications prior to income verification, and make recommendations relative to loan amount. and review compliance With City Housing, Building and Historic Preservation Codes, and with Section 106 of the Code of Federal Regulations rroject t<anI<Jng Projects will be ranked by the architectural or historical significance of the build,ng, and the priOrity of the work. The architectural or historical s,gnlficance will be based on the H,storic Propert,es inventory of 1978-1979 The H,storic Preservation Commission will rev,ew the loan appl,cation, the proposed work, and the committee's recommendations. The Commission must approve a Certificate of Appropriateness for all proposed work prior to ,ssuance of permits or processing of loans. Highest priority will be given to projects that result in saving, restoring, or reconstructing original building elements, using orig,nal materials that refiect the architectural character or significance of the property I Second priority will be given to projects that use preservation alternatives, such as different materials, techniques or m. ethods for rehab,litatlOn of historic bUlld,ngs All applicable City reviews and permits must be completed: e.g., building permits, rental license housing inspection, before any work begins Work begun prior to obtaining a required permit, review or approval will not be eligible for loan ass,stance Projects will receive a lower rating ,f the property owner is a previous borrower under thIS program l~~ewa"d AøPfO-'fJl Applications w,lI be accepted during regular business hours at the Housing and Community Development Department, 1805 Central Avenue, Dubuque, Iowa All applications must include required information on ,ncome, specific work proposed, and at least two est,mates rece,ved from full{,me contractors licensed ATTORNEYS AT LAW 100 COURT AVENUE' SUITE 600 DES MOINES. I(JIYA 50309-2231 PHONE 515-243-7611 FAA 515-243-2149 WWW.AHLERSLAW.COM WILLIAM J NOTH WNOTH@AHLERSLAW"COM Oirecl Dial: (515)24&<1332 October 20, 2004 Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001-4864 RE: $200,000 General Obligation Capital Loan Note (Historic Preservation Loan Fund) Dear Mr. TeKippe: We have now prepared and are enclosing herewith suggested replacement proceedings to be acted upon by the Council in fixing the date of a meeting on the proposition to enter into a loan agreement and issue the above mentioned Note and ordering publication of a notice of hearing consistent with the provisions of Code Section 384.24 and 384.26. These proceedings should be used in lieu of those provided to you with my letter of October 12, 2004. Notice of this meeting must be published at least once in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in the City. The date of publication is to be not less than ten clear davs before the date of said public meeting on the issuance of the Note. In computing time, the date of publication should be excluded. If the last day falls on Sunday, the whole of the following Monday should be excluded. At the time of hearing the Council shall receive oral or written objections from any resident or property owner to the proposed action to enter into a loan agreement and issue the Note. After all objections have been received and considered, the Council is required, at that meeting or at any adjournment thereof, to take additional action for the authorization of a loan agreement and the issuance of the Note or to abandon the proposal. WISHARD & BH.y-18B8; GlÆJINSEY & BH.Y -1893; EW.Y &5....1901; 5TPP. PERRY. _1ER&5.""""",-1914; BmtsrER. CARPENTER. """'s& C<xH;v -1961;""'0$. C<xH;v. O~lER. AuæE. HAYNE&51MTtt-1974; """'S. C<xH;v. DCRWElER. HA-. SIIIDi&ALlBEE. PC -1990 '" ( I .L (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa. Date of Meeting: ,2004. Time of Meeting: o'clock _.M. Place of Meeting: Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for said meeting is as follows: $200,000 General Obligation Capital Loan Note. Resolution fixing date for a meeting on the proposition to issue. Such additional matters as are set forth on the additional- page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. City Clerk, Dubuque, Iowa . Council Member Cl ine introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council Member Connors seconded the motion to adopt. The roll was called and the vote was, AYES: Buol, Cline, Connors, Duggan, Markham, Michalski, Nicholson NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 455-04 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa, should issue a General Obligation Capital Loan Note to the amount of $200,000, as authorized by Section 384.24A and 384.26(5) of the Code ofIowa, for the purpose of providing funds to pay costs of carrying out a general corporate project as hereinafter described; and WHEREAS, the Loan Agreement and Notes shall be payable from the Debt Service Fund; and WHEREAS, before a Loan Agreement may be authorized and General Obligation Capital Loan Notes issued to evidence the obligation of the City thereunder, it is necessary to comply with the provisions of the City Code ofIowa, as amended, and to publish a notice of the proposal and of the time and place of the meeting at which the Council proposes to take action for the authorization of the Loan Agreement and Note and to receive oral and/or written objections from any resident or property owner of the City to such action and the right to petition for an election. -2- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6: 30 o'clock -E..M., on the 20th day of December, 2004, for the purpose of taking action on the matter ofthe issuance of a $200,000 General Obligation Capital Loan Note, the proceeds of which will be used to provide funds to pay costs of funding the City's Historic Preservation Revolving Loan Fund and the making ofloans to property owners in designated historic preservation districts or who own a City designated landmark for exterior rehabilitation projects. Section 2. That the Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than ten clear days before the date of said public meeting on the issuance of said obligations. Section 3. The notice of the proposed action to issue said General Obligation Capital Loan Note shall be in substantially the following form: -3- NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the 20th day of December, 2004, at 6: 30 o'clock ~.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of a $200,000 General Obligation Capital Loan Note in order to provide funds to pay costs of funding the City's Historic Preservation Revolving Loan Fund and the making ofIoans to property owners in designated historic preservation districts or who own a City designated landmark for exterior rehabilitation projects. At the above meeting the Council shall receive oral or written objections from any resident or property owner of the City, to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the authorization of a Loan Agreement and the issuance of a Note to evidence the obligation of the City thereunder or will abandon the proposal. At any time before the date of said meeting, a petition, asking that the question of issuing such Note be submitted to the legal voters of said City, may be filed with the Clerk of said City in the manner provided by Section 362.4 of the City Code ofIowa, pursuant to the provisions of Section 384.26(5) of the City Code ofIowa. This Notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 384.24A and 384.26(5) of the City Code ofIowa, as amended. Dated this 7th day of December ,2004. /s/ Jeanne F. Schneider, City Clerk (End of Notice) -4- PASSED AND APPROVED this 6th day of December, 2004. Terrance M. Duggan, Mayor ATTEST: Jeanne F. Schneider City Clerk -5- ,2004 The City Council of Dubuque, Iowa, met in Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at the above date. There were present Mayor and the following named Council Members: session, in the o'clock _.M., on , in the chair, Absent: ******* -1- Council Member introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council Member seconded the motion to adopt. The roll was called and the vote was, AYES: NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa, should issue a General Obligation Capital Loan Note to the amount of $200,000, as authorized by Section 384.24A and 384.26(5) of the Code ofIowa, for the purpose of providing funds to pay costs of carrying out a general corporate project as hereinafter described; and WHEREAS, the Loan Agreement and Notes shall be payable from the Debt Service Fund; and WHEREAS, before a Loan Agreement may be authorized and General Obligation Capital Loan Notes issued to evidence the obligation of the City thereunder, it is necessary to comply with the provisions of the City Code of Iowa, as amended, and to publish a notice of the proposal and of the time and place of the meeting at which the Council proposes to take action for the authorization of the Loan Agreement and Note and to receive oral and/or written objections from any resident or property owner of the City to such action and the right to petition for an election. -2- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at o'clock _.M., on the - day of ,2004, for the purpose of taking action on the matter ofthe issuance of a $200,000 General Obligation Capital Loan Note, the proceeds of which will be used to provide funds to pay costs of funding the City's Historic Preservation Revolving Loan Fund and the making ofloans to property owners in designated historic preservation districts or who own a City designated landmark for exterior rehabilitation projects. Section 2. That the Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than ten clear days before the date of said public meeting on the issuance of said obligations. Section 3. The notice of the proposed action to issue said General Obligation Capital Loan Note shall be in substantially the following form: -3- NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the - day of , 2004, at - o'clock _.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of a $200,000 General Obligation Capital Loan Note in order to provide funds to pay costs of funding the City's Historic Preservation Revolving Loan Fund and the making ofloans to property owners in designated historic preservation districts or who own a City designated landmark for exterior rehabilitation projects. At the above meeting the Council shall receive oral or written objections from any resident or property owner ofthe City, to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the authorization of a Loan Agreement and the issuance of a Note to evidence the obligation of the City thereunder or will abandon the proposal. At any time before the date of said meeting, a petition, asking that the question of issuing such Note be submitted to the legal voters of said City, may be filed with the Clerk of said City in the manner provided by Section 362.4 of the City Code ofIowa, pursuant to the provisions of Section 384.26(5) of the City Code ofIowa. This Notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 384.24A and 384.26(5) of the City Code ofIowa, as amended. Dated this - day of ,2004. City Clerk of Dubuque, Iowa (End of Notice) -4- PASSED AND APPROVED this - day of ,2004. Mayor ATTEST: City Clerk -5- , . . CIG-3 9/91 CERTIFICATE STATE OF IOWA ) ) SS ) COUNTY OF DUBUQUE I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty- four hours prior to the commencement of the meeting as required by said law and with members ofthe public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this day of , 2004. City Clerk, Dubuque, Iowa SEAL DCORNELL\429798.1 IWPII0422069 -6-