Development Proposal for Stout Place
-
.
.
.
IFA EXIDBIT 39
RESOLUI10N 184-00
WHEREAS, the City of Dubuque, Iowa, has been informed by MetroPlains
Development, LLC that a low income hou&ing tax credit application (will or has been)
filed with the Iowa F'Ulance Authority for the development of affordable rental hou&ing to
be located at 125 W 9. Street, Dubuque, Iowa with a legal description as follows:
City lot 168 lII1d 168A and the south 'h of city lot 167, City of Dubuque, Iowa
WHEREAS, this housing project will contain approximate1y 31 units;
WHEREAS, the units will be targeted to elderly and general occupancy;
WHEREAS, the project will be a acquisition and rehabilitation;
WHEREAS, the property will have the following amenities:
On site laundry, conununity room, elevator and controlled entry, units will be full
sized one and two bedroom apartments, kitchens will have full size ranges and
refiigerators.
WHEREAS, the developer has requested 10cal assistance through tax increment
financing, a tax abatement, lead abatement loan, CDBG loan, city loan
NOW, TIIEREFORE, BE IT RESOLVED by the City of Dubuque Governing
Body, that we support and approve the development of the aforesaid housing in our
community, subject to city ordinances and the building permit process. The resolution is
effective until 4/20/2001. In the event that any of the characteristics mentioned above
should change prior to the issuance of a building permit, this resolution is null and void.
ADO.Pl'l:D BY THE GOVERNING BODY AND APPROVED BY THE
MAYOR,this~dayof May ,200_
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
--
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 27, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT:
Development Proposal for Iowa Inn
.
Housing Services Manager David Harris is recommending that MetroPlains Development
replace the Iowa Housing Corporation as owner and developer of the Iowa Inn project.
The Iowa Housing Corporation (IHC) is currently the owner of the Iowa Inn. The City of
Dubuque provided a CDBG loan in May of 1997 to IHC for purchase of the property and is
currently the first mortgage holder.
The IHC, in February, voted to cease operations and has made an accepted offer to cede
its assets to the State of Iowa. The Governor's Office is now examining IHC's corporate
holdings and is expected to make a decision regarding disposition within the next 30-60
days.
MetroPlains Development's plan for the Iowa Inn would differ from the Iowa Housing
Corporation in that both buildings would be saved and rehabilitated, where the IHC had
proposed tearing down the eastern building.
MetroPlains Development would still only be creating 32 rental units, but they would be
larger units than previous plans. However, they would not be creating the same number of
on-site parking spaces, so they would require permits to use 31 spaces in the City parking
lot across the street instead of 16 spaces in the previous plan.
I concur with the recommendation and respectfully request Mayor and City Council
approval. # Z
IlLiell k~(J!ll
Michael C. Van Milligen
MCVM/dd
Attachment
VI
8JUC)
''J
/10
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
9C :~ lid LZ (ldl1 00
.
03N::J.J38
I
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
25 April 00
To: Mike v~gen, City Manager
From: David Harris, Housing Services Department
Re: Development proposal for Stout Place
Introduction
The purpose of this memorandum is request the City Council to approve the request of
MetroPlains Development to replace the Iowa Housing Corporation as owner and developer of
the Iowa Inn/Stout Place project.
.
Background
The Iowa Housing Corporation (IHC) is currently the owner of the Iowa Inn. The City of
Dubuque provided a CDBG loan, in May 97, to IRC for purchase ofthe property and is currently
the first mortgage holder.
The Housing Corporation in February voted to cease operations and has made an accepted offer
to cede its assets to the State ofIowa. The Governor's Office is now examining IHC's corporate
holdings and is expected to make a decision regarding disposition within the next 30-60 days.
Discussion
Housing Department staffhas held discussions with other developers interested in this project.
MetroPlains Development, a St Paul-based developer of housing tax credit properties, has worked
with staff to formulate a proposal. MetroPlains has provided a packet of information on the
structure ofthe company and a history of properties developed throughout the Midwest; this is
attached to this memorandum. In particular, Metro's redevelopment ofthe Hotel Burlington - as
its' initial Iowa project - has established a reputation locally for the corporation for quality work
in the rehabilitation and restoration of historic structures. Their proposal is to do the same in
Dubuque for the Iowa Inn.
.
Development Proposal
While the Inn is again proposed to be developed in accordance with guidelines for the federal
affordable housing tax credit program, it differs significantly in that Metro's concept is to
rehabilitate both buildings on the site. The previous proposal called for demolition ofthe 1916
former YMCA building and restoration of the 1894 gymnasium building. The 32 units to be
---
.
.
.
included would have necessitated conversion of all common areas into apartments; as well, the
unit sizes would have ranged from 480 to 640 square feet.
Metro's proposal, utilizing both buildings - but adding no units - will result in restoration ofthe
first floor common entry and lobby areas. As well, the apartments will range in size from 650 to
900 square feet, better reflecting trends in the current rental market.
The rationale for this approach, in addition to respect for historic preservation, has to do with the
availability of financing. Preservation of both structures will qualify the project for eligibility for
federal historic tax credits, providing nearly $500 000 in additional investor equity. This in turn
will decrease the housing tax credit allocation requested from the Iowa Finance Authority and
increase the probability of favorable application decision. ·
Re-use of both buildings, however, will increase the parking needs for the project. Previously a
concept agreement had been reached with the Council for approval of 16 parking permits, for
building residents, to park in the City-owned surface lot on Iowa Street. The City was to have
been fully reimbursed for lost meter revenue for these spaces, carried as a project cost of the
development. The Metro proposal is for 31 permits, with the same cost reimbursement
agreement.
The deadline for submission ofthis year's application for tax credits, to the Finance Authority, is
15 July. As this schedule requires the developer to begin design and feasibility analysis quickly,
MetroPlans is requesting an indication of the City of Dubuque's support of this partnership, at this
time. Specifically, Metro is requesting the following:
1. The City approve the attached resolution ("IF A Exhibit 39"), signifYing the Council's
endorsement of Metro Plains as the intended applicant, to the Iowa Finance Authority,
for housing tax credits for the Iowa Inn project, as proposed.
2. Reiteration ofthe City's financial support, as previously committed to the Iowa
Housing Corporation, as outlined in "IFA Exhibit 37: Local Contributing Effort
Verification"
(This support is actually less than previously committed; the "Tax Increment
Financing" amount, of$220 000, was previously approved for the Housing
Corporation in the amount of$300 000.)
3. The City "select MetroPIains as the preferred developer" of the project.
(As the Iowa Housing Corporation is still the owner of the property, actual transfer of
the deed, and the City's mortgage, cannot occur until the State's action to receive and
transfer the Corporation's assets is completed.)
-----
.
.
.
Finally, MetroPlains is requesting the City, between this date and 1 July, to:
1. Work with the Governor's Office and the Finance Authority to facilitate transfer of
ownership of the property.
2. Negotiate a mutually acceptable agreement regarding transfer of the City's CDBG first
mortgage.
3. Negotiate a mutually acceptable agreement regarding the dedication ofIowa Street
surface lot parking spaces
Action Step
The actions requested ofthe City Council are to:
1. Select MetroPlains as the preferred developer for rehabilitation of the Iowa Inn/Stout
Place, according to the development concept as proposed;
2. Authorize the Mayor's execution ofIFA Exhibit 39, a resolution supporting the
application of Metro Plains to the Iowa Finance Authority for housing tax credits; and
3. Authorize the City Manager's execution ofIFA Exhibit 37, re-committing financial
assistance to MetroPlains Development for the proposed project, as previously
approved for the Iowa Housing Corporation.