Support of Application for Housing Tax Credits for the Iowa Inn
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Office of tbe> M'lyor
cmd City COllllcil
City llilll
50 \Vrsl L,t11 Sired
Dubuque, fowa 52001-4SM
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11 September 00
Affordable Housing Tax Credit Program
Iowa Finance Authority
100 East Grand
Suite 250
Des Moines IA 50309
Re: Project #00-03
Iowa Inn Redevelopment
124 West Ninth Street
Dubuque
Renovation of the Iowa Inn is a high priorily downtown revitalization project for the City of
Dubuque. It has remained a high priority fbr the past five years, during which city staffhave
worked with three different developers to assemble a feasible development proposal. The city has
extended the downtown urban renewal district to illclude the Inn property within its boundaries,
in order to access tax increment loan funds for the project. In addition, a site-specific urban
revitalization district has been created for the project, to enable the developer to obtain deferment
of taxes on planned improvements. And as much as $700 000 has previously been committed by
the City Council, to subsidiz.e the considerable development costs of this project.
The proposal submitted by MetroPlains Development addresses the city's needs and priorities as
approved by the City Council. Renovation ofthis long-blighted building will complement current
public and private efforts now substantially improving the downtown. Provision of31 new
apmiment units will serve to bring more re&idents downtown, which is central to the city's
revitalization strategy fDr the area. Consid('rable new tax revenues will be generated by the
completed project, at termjnation of the delerment period. And a sensitive historic restoration of
this 100+ year-old building will preserve a Dubuque architectural landmark.
We hope that the Finance Authority will give this application every consideration and that your
assistance will enable us to successfully achieve this important project for the City of Dubuque.
Sincerely
1-o-~..~ "t~~J~~~__
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John Markham, Mayor Pro- T em . / . .' 'd/~
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CITY OF DUBUQUE, IOWA
MEMORANDUM
September 26, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Application for Housing Tax Credits for the Iowa Inn
Housing Services Manager David Harris is recommending execution of a letter of
support for an application for housing tax credits for the Iowa Inn Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
fY) J1 ~~A1fl
M{chael C. Van Milligen ..........
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
11 September 00
To: Mike V]M. ,illigen, City Manager
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From: David arris, Housing Services Department
Re: Application for Housing Tax Credits for the Iowa Inn
Introduction
The purpose of this memorandum is to request the Council's approval ofthe Mayor's execution
of the attached letter of comment to the Iowa Finance Authority, regarding the pending
application for housing tax credits for the Iowa Inn project.
Background
The Affordable Housing Tax Credit Program, administered by the Iowa Finance Authority (IF A),
provides an equity financing mechanism for housing projects serving low- and moderate-income
tenants. It implements Section 42 of the Internal Revenue Service Code, returning tax credits to
investors who build or renovate low income housing. In Iowa, the Finance Authority annually
distributes approximately $3 million in credits, on a competitive application basis.
In Dubuque, projects previously financed through this program include Heartland Housing
Initiative's Loras Boulevard and Main Street apartments, the Applewood complex on
Pennsylvania Avenue and the Bishop's Block/Riverview Apartments.
Discussion
The attached letter signifies the City Council's support for the application from MetroPlains
Development, to the Finance Authority, for tax credits to support the $3.4 million renovation cost
of the Iowa Inn. Total Section 42 and federal historic rehabilitation tax credits will equal $2.8 of
this project cost.
Action Step
The action request of the City Council is to authorize the Mayor's execution of the attached
letter, supporting the MetroPlains Development application to the Iowa Finance Authority.
att
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IOWA
FINANCE
AUTHORITY
Thomas J. Vilsack
Governor
Sally J. Pederson
Lt. Governor
Michael L. Tramontina
Executive Director
100 E. Grand Avenue
Suite 250
Des Moines, IA 50309
1-800-432-7230
Ph: (515) 242-4990
Fax (515) 242-4957
September 5, 2000
Honorable Terrance Duggan
50 W. 13th Street
Dubuque, IA 52001
Dear Honorable Terrance Duggan:
Section 42(m)(1 )(A)(ii) of the Internal Revenue Code of 1986, as amended, requires that the
Iowa Finance Authority notify the chief executive officer (or the equivalent) of the local
jurisdiction when .aJ:l Affordable Housing Tax Credit application has been submitted for a
project in that local jurisdiction and to provide reasonable opportunity for comment of the
project. This letter serves as notification to you that the following application has been filed
with the Iowa Finance Authority under the Affordable Housing Tax Credit Program.
Comments are not required by the local jurisdiction, this is merely a required notice to the
jurisdiction. Any comments must be submitted in writing to the address shown below.
Include the Project Number on any correspondence.
Project # 00-03
Iowa Inn Redevelopment
125 W. 9th Street
Dubuque
Comments concerning this project should be addressed to:
Affordable Housing Tax Credit Program
Iowa Finance Authority
100 E. Grand, Suite 250
Des Moines, IA 50309
Any comments concerning this project should be received by the Authority by 4:30 p.m.
October 5, 2000, to be considered prior to any action taken by the Authority on those
projects that ranked high enough in the review process to receive a reservation of Affordable
Housing Tax Credit.
If you have any questions, please feel free to contact our office.
Sincerely,
~~
Danelle Williams
Administrative Assistant
VI 'GnC,lqnO
88!JJO s,> 18() 1\110
S~ :8 Wd L - d3S 00
03A/3838
(OOMA YOR)