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Wilmac Property Group_Mulit-Family Rental Unit Production ApplicationMasterpiece on the Mississippi Dubuque bierd All-America City 1 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Multi - Family Rental Unit Production - Round 4 for 901 Jackson Street DATE: May 29, 2012 Economic Development Director Dave Heiar recommends City Council approval of an application for a Community Development Block Grant (CDBG) Multi - Family Rental Unit Production — Round 4 funding to create multi - family rental units in the Betty Building located at 901 Jackson Street in the Historic Millwork District. The CDBG Multi - Family Rental Unit Production — Round 4 application on behalf of Tim McNamara and the Wilmac Property Group requests a grant of $1,957,977 to fund the gaps associated with historic rehabilitation of this building. The total project cost is estimated at $3,706,000 and would create 10 new rental housing units in the Historic Millwork District. This project is essential to the City of Dubuque for two reasons. First, it will help address the critical shortage of workforce housing in our community and second, it will continue to help implement the redevelopment of the Historic Millwork District. As of the first part of May, the Caradco developers had a list of over 120 persons who want to rent in this building. This reinforces the 2009 Iowa Finance Authority housing study, which indicated a need for 557 new rental units in our community with emphasis on downtown location. The City has not come close to meeting the rental housing need identified by the 2009 study. In the meantime, local businesses and industries continue to expand. Within the last month, John Deere announced the creation of over 150 new jobs. Unfortunately, the tight rental housing market makes job growth challenging. The demand for quality rental housing continues to outpace the available rental units. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director 2 Masterpiece on the Mississippi Dubuque knetril All-America City 1 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Multi - Family Rental Unit Production — Round 4 for 901 Jackson Street DATE: May 24, 2012 PURPOSE This memorandum is to seek City Council approval of an application for CDBG Multi - Family Rental Unit Production — Round 4 funding to create multi - family rental units in the Betty Building located at 901 Jackson Street. BACKGROUND On February 16, 2009, the City Council adopted the Historic Millwork District Master Plan. This plan proposes a major transformation of the Historic Millwork District, a 17 -block neighborhood with over one million square feet of vacant warehousing space. The City Council has agreed that revitalizing this area into a mixed -use neighborhood with downtown housing, office, and retail uses, will encourage additional growth in the community. Rehabilitation of the Millwork District is a high priority of the City Council. DISCUSSION The City is working to partner with the Millwork District property owners to transform their historic structures into quality workforce housing and commercial spaces. As stated in the Master Plan, the first phase includes the redevelopment of three major buildings within the district. The first major building rehabilitation in this District is the Caradco project, which is scheduled to be completed before the end of 2012. The 72 residential units in this building are actually scheduled to be finished in August. This $28 million project was funded with several types of financing including State and Federal Historic Tax Credits, New Market Tax Credits, a CDBG disaster assistance grant, an IFA loan, City of Dubuque Downtown Housing Incentives, TIF and conventional financing. The attached application on behalf of Tim McNamara and the Wilmac Property Group will be another step in achieving the goals of the Historic Millwork District Master Plan. The CDBG Multi - Family Rental Unit Production — Round 4 application requests a grant of $1,957,977 to fund the gaps associated with historic rehabilitation of this building. The total project cost is estimated at $3,706,000 and would create 10 new rental housing units in the Millwork District. This project is essential to the City of Dubuque for two reasons. First, it will help address the critical shortage of workforce housing in our community and second, it will continue to help implement the redevelopment of the Historic Millwork District. As of the first part of May, the Caradco developers had a list of over 120 persons who want to rent in this building. This reinforces the 2009 IFA housing study, which indicated a need for 557 new rental units in our community with emphasis on downtown location. The City has not come close to meeting the rental housing need identified by the 2009 study. In the meantime, local businesses and industries continue to expand. Within the last month, John Deere announced the creation of over 150 new jobs. Unfortunately, the tight rental housing market makes job growth challenging. The demand for quality rental housing continues to out pace the available rental units. RECOMMENDATION Based on the critical need for quality units in the Historic Millwork District, I recommend that the City Council approve the attached Resolution to authorize an application for $1,957,977 million of CDBG Multi - Family Rental Unit Production — Round 4 on behalf of the Betty Building project. F \USERS \Econ Dev \Betty Building \NP4 Application\20120525_CDBG Funding Betty Building Project Council Memo doc Prepared by: David Heiar, Economic Dev Director, 50 West 13th Street, Dubuque IA 52001 563 589 -4393 Return to: Kevin S. Firnstahl, City Clerk, 50 West 13th Street, Dubuque IA 52001 563 589 -4121 RESOLUTION NO. 151-12 RESOLUTION OF SUPPORT TO THE IOWA ECONOMIC DEVELOPMENT AUTHORITY, ON BEHALF OF TIM MCNAMARA / WILMAC PROPERTY GROUP FOR SUBMITTAL OF AN APPLICATION FOR A CDBG DISASTER MULTI - FAMILY UNIT PRODUCTION ROUND 4 APPLICATION. Whereas, Dubuque County was impacted by the floods of 2008 and the area has a critical need for additional workforce housing; and Whereas, in 2009 the Real Property Research Group along with other studies concluded that there is a need for additional downtown housing; and Whereas, the City Council has prioritized the redevelopment of the Historic Millwork District for mixed use with an emphasis on downtown housing; and Whereas, the Betty Building project located at 901 Jackson Street will provide much needed residential development to the downtown area; and Whereas, the City Council finds that the proposed application is acceptable and necessary to the growth and development of the city. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Attest: Section 1. Section 2. The City of Dubuque agrees to support the CDBG Disaster Multi - Family Unit Production Round 4 Application on behalf of Tim McNamara / Wilmac Property Group for the property at 901 Jackson Street. That the Mayor is hereby authorized and directed to execute this Resolution on behalf of the City of Dubuque and forward the executed copy to the Iowa Economic Development Authority. Passed, approved and adopted this 4th day of June, 2012. Kevi S. Firnstahl, ity Clerk Roy D. Buol, Mayor F: \USERS \Econ Dev \Betty Building \NP4 Application\20120525_ Resolution of Support Betty Building Round 4.doc Multi- family (Rental) Unit Production — New Construction Program Round 4 Application WA INSTRUCTIONS: Complete all information requested on this application to the best of your ability. Please use ink, and print legibly. Contact your assigned Disaster Recovery Area or Direct Recipient administrative contact for the Multi- family (Rental) Unit Production — New Construction Program — Round 4 for details on how to submit this application. The Application Deadline is May 15, 2012. Name of IEDA Disaster Recovery Recipient submitting this proposal: City of Dubuque Contact person name and contact information: Dave Heiar (563- 589 - 4105), Mike Van Milligen or the Mayor Qualifying Category: Replacing Units Lost Impact on Area Recovery X Rental Applicant / Owner Information Tim McNamara/ Wilmac Property Company /801 Jackson St., Dubuque, IA 52001/563- 556 -8881 Company Name/ Address/Telephone Number For - Profit XX McNamara *Non- Profit Last Name (Individual Owner or CEO) 421201501 Tax ID Number 563- 556 -8881 Contact Telephone # timmc@mwci.net Tim J First Name MI Cell # Alternate Telephone # E -mail Address 801 Jackson St. Current Mailing Address 1 Dubuque Dubuque IA 52001_ City County State Zip Code *If the applicant is a non - profit organization, submit documentation indicating non - profit status. 1 Section I Proposed Rental Property To Be Constructed Please complete all of the following project/property information and for each scattered -site property combined within this proposal. 901 Jackson St Dubuque IA 52001 Street Address City State Zip Code Legal description(s) (if lengthy— attach): Number of buildings 2 Number of rental units _10 Number of rental units by bedroom size(s) Efficiency CDBG Disaster Assisted Units 1- Bedroom _2_ CDBG Disaster Assisted Units 2_ 2- Bedroom _8_ CDBG Disaster Assisted Units _8_ 3- Bedroom CDBG Disaster Assisted Units 4- Bedroom CDBG Disaster Assisted Units Building Type(s): Describe: Brick & steel; warehouse – 3 and 4 stories Building Codes applicable to this project Dubuque Historic Building Code Is the proposed Rental Property to be located in a 100 -year flood plain? ❑ Yes X No Is the proposed Rental Property to be located in a locally proposed or designated buy -out area? ❑ Yes X No Number of Multi- family Rental Housing Units lost, in the jurisdiction where this project will be located, due to a Disaster Event between May 25, 2008 and August 13, 2008 (Provide documentation) (Does not apply to applicants applying under the Impact Area Recovery Category) Estimated total project costs $ 3,706,000 Amount toward common areas and grounds $ 0 General Administration funds (Recipient's Use) $ 39,959 (Not to exceed two percent (2 %) of total award calculated by considering the total of all project - related costs as ninety -eight percent of the total award) Income Targeting # of Units % of Total At/below 40% At/below 50% At/below 60% At/below 80% 10 100_ Market - Rate /Other TOTAL * *PROVIDE ADDITIONAL DOCUMENTATION AS SHOWN ON APPLICATION CHECKLIST ** Section 1I Signature Page 2 Disclosures: • This application serves as the initial point of entry to the Multi- family (Rental) Unit Production — New Construction Program — Round 4. Additional information and documentation may be required to determine eligibility. • Authorized representatives of the Multi- family (Rental) Unit Production — New Construction Program — Round 4 shall have the right to inspect the proposed Rental project at any time, from the date of application through completion and to the end of the period of affordability, upon giving due notice to the owner and occupant(s). • The information requested in this application is legally required to determine if you qualify for participation in the Multi- family (Rental) Unit Production — New Construction Program — Round 4. Use of data obtained is limited to that necessary for the administration and management of this program by Iowa Economic Development Authority personnel, those under contract with Iowa Economic Development Authority, and other governmental agencies when authorized by the Iowa Economic Development Authority or its recipient. • Assistance shall be in the form of a forgivable loan. • As a condition of receiving Mufti-family (Rental) Unit Production — New Construction — Round 4 assistance, you must execute and consent to the recording of 10 -year forgivable (forgiven in full at the end of the 10 -year compliance period), non - receding loan documents and the agreement for covenants and restrictions against the assisted property. If the Disaster - affected Rental Property is sold, or title is transferred or conveyed before the 10 -year maturity date of the forgivable, non - receding loan has been reached, then the entire amount of assistance shall be due and payable. Certifications: • Any person or entity, who obtains funds through false representation, is guilty of theft and may be prosecuted and sentenced accordingly. • I/We certify that the statements contained in this application are true, accurate, and complete to the best of my /our knowledge and belief. Signatures: Eventual owner of record of the Rental Property must sign this application. By signing this application, the undersigned acknowledge(s) that any financial assistance received through the Multi- family (Rental) Unit Production — New Construction Program — Round 4 shall be in the form of a forgivable, non - receding loan, which loan may be secured by the recorded forgivable loan documents. The forgivable, non - receding loan shall be due and payable in full upon the sale or transfer of the assisted property. Borrower (Owner of Rental Property) Signature Joint Applicant Signature Date Date We certify that we have reviewed this application (worked with the rental applicant on the final details of the proposal, revising as necessary) arjgiven our approval of this project. CDBG Disaster Recovery Recipient (Local Government) Date 3 RENT CALCULATION WORKSHEET This worksheet must be completed and submitted with the Multi- Family (Rental) Unit production — New Construction — Round 4 Applications. Using the HOME program rents, record in the table below the 65% Rent for the county or metropolitan statistical area (MSA) for each of the unit sizes (efficiency, 1- bedroom, 2- bedroom, 3- bedroom, 4- bedroom) proposed. MAXIMUM RENTS Efficiency ` 1- bedroom 2- bedroom 3- bedroom 4- bedroom 1 Gross Rents 735 65% Rent 715 768 923 1059 1161 1 - Utility Allowance Record in the table below the Gross Rent (rent + utility allowance for tenant -paid utilities) to be charged for the proposed project for each of the unit sizes. Gross rents cannot exceed the rents recorded as Maximum Rents above. If the proposed project has different rents for the same size of unit, use both boxes for the unit size. Record the utility allowance for each unit size (utility allowances are available from the local housing authority). Subtract the utility allowance from the gross rent to determine the Net Rent. PROJECT RENTS Efficiency 1- bedroom 2- bedroom 3- bedroom 4- bedroom Gross Rents 735 884 - Utility Allowance 101 135 = Net Rents 634 749 Answer the following questions. 1. What source was used to determine the utility allowance for tenant -paid utilities? (Please attach source documentation). 2. ECIA, max rents for units using CDBG funds, is calculated by using 2011 HOME Program 65% rent limits 3. What is the effective date of the HOME rents recorded in the tables above? Are rents for the county or metropolitan statistical area? February 9, 2012 4. Do all units have gross rents (net rents + utility allowance) at or below the 65% rent limit? Yes City of Dubuque 2012 Income Limits 1- person 2- person 3- person Household Size 4- person 5- person 6- person 7- person 8- person Dubuque County 50% AMI $22,650 $25,850 $29,100 $32,300 $34,900 $37,500 $40,100 $42,650 Dubuque County 80% AMI $36,200 $41,400 $46,550 551,700 $55,850 $60,000 $64,150 $68,250 65% HOME Rent Limit Efficiency $715 $768 $923 $1,059 51,161 $1,262 $1,364 1 BR 2 BR 3 BR 4 BR 5BR 6BR Multi - family (Rental) Unit Production (New Const.) — Round 4 Budget Summary # of Units (CDBG Assisted) 10 CDBG Requested Amount 1,957,977 General Administration CDBG Requested Amount Total 39,959 1,997,936 Other Funds Summar Source of Funds (list all) Use of Funds (Be Specific) Amounts Grant OR Loan (If loan, provide interest rate & term) Contact Person Name Telephone Number Commitment Status State Historic Tax credit 694,600 Tax Credit Jack Porter 515 -242- 6152 ST C10 -31- 043 See Attached Reserved for 2012 Federal Historic Tax Credit 583,464 Tax Credit John Gronen 563 -213- 0013 See Attached note Conventional Loan 330,000 Loan Premier Bank, Tom Johnson 563 -588- 1000 See attached letter Housing Incentive 100,000 Forgivabl e Loan City of Dubuque 563 -589- 4105 Being applied for [B]1,708,064 [C]3,706,000 Other Funds Total — TOTAL PROJECT BUDGET =[C] (CDBG Total [A] + Other Funds Total [B] _ [C] 1 Total Project Delivery Costs $3,706,000 STATE HISTORICAL IOW f A Division of the Iowa Department of Cultural Affairs November 24, 2009 Jeffrey Morton Jeffrey Morton Architect, PC 206 Bluff ST Dubuque, IA 52001- RE: STC10 -31 -043 - Linseed Oil Paint Works Company (Dubuque) Dear Jeffi ey: Based on the information provided in Part 2 of your application, tax credits for the rehabilitation project have been provisionally reserved in the amount of: Reserved Taxable Reserved Year: Calendar Year: Credit: Fund: 2012 2012 $900,000 Rollover Total: $900,000 Upon completion of the project and receipt of a tax credit certificate, the applicant may claim the tax credits on a tax return for the respective taxable calendar year(s) noted above or any later year. If the project description in Part 2 of the application was approved with condition(s), please use the attachment which set forth those conditions, if any, that was enclosed in the previous letter dated, October 22, 2009. Pursuant to 223 Iowa Admin. Code 48.10, the project must cornmence before the end of the current state fiscal year. Therefore, please notify us in writing before June 30, 2010, of the commencement date of actual construction. If the estimated qualified rehabilitation costs for the project exceed $500,000, you must also submit a statement confirming expenditure of at least 10 percent of the estimated qualified rehabilitation costs prior to the end of the state fiscal year (June 30, 2010) in which the State Historic Preservation Office approved Part 2 of the application. The statement must be certified by a certified public accountant. This letter is a preliminary determination only, since a formal "Certification of Rehabilitation" can be issued only to the applicant after the rehabilitation work is completed and the applicant has satisfied all applicable laws, rules, requirements and standards. To request certification upon the completion of the project, a Request for Certification of Completed Work (Part 3 of the application), along with interior and exterior photographs of the completed work documenting the fulfillment of any conditions set forth in the Part 2 approval, must be returned to this office within 6 months of the date the building is placed in service. At the same time, the Iowa Department of Revenue's Historic Preservation Tax Credits Survey must be sent to the Iowa Department of Revenue. Any submission of a Part 3 of the application with qualified rehabilitation costs of more than $500,000 shall include a certified statement by a certified public accountant verifying that the expenses statement includes only qualified rehabilitation costs incurred in the time period established in 223 Iowa Admin. Code 48.4(5). An onsite inspection of the completed work by an authorized representative of the State Historic Preservation Office may be undertaken prior to the issuance of the final Certification of Rehabilitation. Tax credits will only be issued in accordance with Iowa law. An applicant's failure to comply with any applicable state and federal laws, rules, requirements or standards may result in the recapture of the tax credit reservation. 600 EAST LOCUST STREET, DES MOINES, IA 50319 -0290 P: (515) 281 -5111 If you have questions or issues concerning technical requirements, particularly issues concerning the Secretary of the Interior Standards for Rehabilitation of Historic Properties, please contact Jack Porter at 515 -242 -6152 or jack.porter@iowa.gov. If you have any other questions concerning the State Tax Credit Program, you may contact Elizabeth Foster Hill at 515- 281 -4137 or beth.foster @iowa.gov. Sincerely, ,-c2f2..h- Cyndi Pederson Director Iowa Department of Cultural Affairs Federal Historic Tax Credit: This is an unlimited tax credit source of 20 %. Our normal process is the once the project is funded, we complete the design development and put together the Part 2 Application and send it to the National Park Service. PO bOX 1862 DUbUQUf IOWfl - 52004 -1862 - PUOUt 563.557.7010 • rflX 563.690 1610 gronenproperties.com gronenrestoration.com r Premier Me B A I`! ',( May 14, 2012 Mr. Tim McNamara 195 Bradley Dubuque, IA 52003 RE: Betty Building Historic Rehabilitation Project Dear Mr. McNamara: Premier Bank is pleased to work with you on your historic renovation of the property known as the Betty Building at the corner of 91h and Jackson Streets in Dubuque, Iowa. The renovation of this property is of great importance to the city and the neighborhood in which it is located. Premier Bank greatly appreciates being your financial partner on past projects as well as on this exciting new project. Premier Bank has reviewed the budget and proforma financial statement for this project and we find that the anticipated cost and revenue structures are in conformance with an acceptable construction project. Subject to confirmation of all stated sources of financing for this project, it is anticipated that construction and permanent financing would be available to the borrower. The anticipated financing needs would include interim construction financing up to an amount of $3,706,000 followed by permanent financing of approximately $328,000 upon receipt of all financing sources. The final commitment for financing would be subject to standard due diligence, acceptable terms of receipt for all sources of financing, and all other standard underwriting guidelines applied to a construction project. Upon successful completion of all bank terms, due diligence and underwriting guidelines, Premier Bank would be ready to provide the necessary financing to complete this important project. We appreciate the opportunity to present you with this preliminary financing letter of intent and look forward to working with you on this project. Best Regards, �l '' /am L ��/a. i Tom A. Johnson Vice President Commercial Lending Asbury Plaza Downtown West S de 1 SOURCES and USES of FUNDS Project: Recipient: Betty Building Tim McNamara/Wilmac Property Compnay SOURCES $ Amount Type Loan/Grant Rate Term (yrs.) Amort. (yrs.) Debt Service Security CONVENTIONAL DEBT Provider:Premier Bank $330,000 Loan 6.00% 15 $33,978 IOWA FINANCE AUTHORITY (IFA) IA ECONOMIC DEVELOP. AUTHORITY (IEDA) 1,997,936 FEDERAL HOME LOAN BANK of DSM Affordable Housing Program (AHP) INVESTMENT EQUITY Low Income Housing Tax Credit (LIHTC) Enterprise Zone Historic Tax Credits -State Historic Tax Credits - Federal Other Tax Credits 694,600 i 583,464 6 ' OWNER/DEVELOPER CONTRIBUTION Cash Land Value Other Value CITY CONTRIBUTION City 100,000 OTHER CONTRIBUTION Other (Specify) TOTAL* 3,706,000 1 USES of FUNDS $ Amount SOURCES of FUNDS -- MANDATORY Land Acquisition 45,000 105,000 Conventional Conventional Building Acquisition Demolition 4,000 5,000 2,737,000 Tax Credits Housing Incentive CDBG & Tax Credits Title, Abstract Recording Property Taxes during Construction Construction Insurance 25,000 30,000 Housing Incentive Housing Incentive Tenant Relocation Contingency 249,000 149,000 29,000 58,000 6,000 Tax Credits Tax Credits Tax Credits Tax Credits Tax Credits Architect & Engineering Technical Services Lead Hazard Reduction or Abatement Financing Costs Fees and Charges Legal & Acounting 32,000 Tax Credits Owner /Developer Fee 180,000 Conventional & Tax Credits Operating Reserves 40,000 Housing Incentive Other (Specify) Rent -up Reserve 12,000 Tax Credits TOTAL* 3,706,000 J *Total Sources of Funds MUST equal Total Uses of Funds Linseed OII'Paintworks Company (Betty Building) OPERATING EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 INCOME: Gross Rental Income - Apartments 74,288 87,073 89,685 92,376 95,147 98,002 100,942 103,970 107,089 110,302 113,611 117,019 120,530 124,146 127,870 Gross Rental Income - Commercial 26,250 35,000 36,050 37,132 38,245 39,393 40,575 41,792 43,046 44,337 45,667 47,037 48,448 49,902 51,399 Less Apartment Vacancy 5% (3.714) (4,354) (4,484) (4:619) (4,757) 14,900) (5,0471 (5.198) (5,354) (5515) (5 681) (5,851) (6,026) (6.207) (6.393) 96,824 117,720 121,251 124,889 128,635 132,494 136,469 140,563 144,780 149,124 153597 158,205 162,951 167,840 172,875 OPERATING EXPENSES: Advertising 600 618 637 656 675 696 716 738 760 783 806 831 855 881 908 Property Management 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 15,657 16,127 16,611 17,109 17,622 18,151 On -Site Payroll 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Administrative Expenses 500 515 530 546 563 580 597 615 633 652 672 692 713 734 756 Supportive Services 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Accounting & Legal 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 Grounds Maintenance 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2.688 2,768 2,852 2,937 3,025 Electric & Gas 3,500 3,605 3,713 3,825 3,939 4.057 4,179 4,305 4,434 4,567 4,704 4,845 4.990 5,140 5,294 Water & Sewer 2,800 2,884 2,971 3,060 3,151 3,246 3,343 3,444 3,547 3,653 3,763 3,876 3,992 4,112 4,235 Elevator Maintenance/Contract 6,000 6,180 6.365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063 8,305 8,555 8,811 9,076 Waste Removal 1,800 1,854 1,910 1,967 2,026 2,087 2,149 2,214 2,280 2,349 2,419 2,492 2,566 2,643 2,723 Snow Removal 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 Pest Control 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 1,957 2,016 2,076 2,139 2,203 2,269 Maintenance PayrolVJanitorial 8,000 8,240 8,487 8,742 9,004 9,274 9,552 9,839 10,134 10,438 10,751 11,074 11,406 11,748 12,101 Repairs & Maintenance 8,000 8,240 8,487 8,742 9,004 9,274 9,552 9,839 10,134 10,438 10,751 11,074 11.406 11,748 12,101 Decorating 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Insurance 11,250 11,588 11,935 12,293 12,662 13,042 13,433 13,836 14,251 14,679 15,119 15,573 16,040 16,521 17,017 Real Estate Taxes 2,800 2,884 2,971 3,060 3,151 3,246 3,343 3,444 3.547 3,653 3,763 3,876 3,992 4,112 4,235 Replacement/Reserve 7,262 8,829 9,094 9,367 9,648 9,937 10,235 10,542 10,859 11,184 11,520 11,865 12,221 12.588 12,966 Total Operating Expenses 75,012 78,611 80,970 83,399 85,901 88,478 91,132 93,866 96,682 99,583 102.570 105,647 108,817 112,081 115,444 Net Operating Income 21,812 39,108 40,281 41,490 42,734 44,016 45.337 46,697 48,098 49,541 51.027 52,558 54,135 55,759 57,432 Federal Historic Tax Credits 583,464 State Historic Tax Credits 694,600 Housing Incentive 100,000 Total Credits & Incentives 1,378,064 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CDBG 1,997,936 Total Sources 3,397,812 39108 40281 41490 42734 44016 45337 46697 48098 49541 51027 52558 54135 55759 57,432 Debt Service: Conventional: ($330,000 @ 6%, 15 years) Principal Paid 14,178 15,028 15,930 16,886 17,899 18,973 20,111 21,318 22,597 23,953 25,390 26,914 28,528 30,240 32,055 Interest Paid 19,800 18,949 18.048 17,092 16,079 15.005 13,866 12,660 11,381 10,025 8,588 7,064 5,449 3,738 1,923 Total 33,978 33,977 33,978 33,978 33, 978 33, 978 33.977 33,978 33,978 33,978 33,978 33,978 33,977 33,978 33,978 Operating Cash Flow 3,363,834 5,131 6,303 7,512 8,756 10,038 11,360 12.719 14,120 15,563 17,049 18,580 20,158 21,781 23,454 Debt Service Ratio 100.00 1.15 1.19 1.22 1.26 1.30 1.33 1.37 1.42 1.46 1.50 1.55 1.59 1.64 1.69 5/14/2012 To whom it may concern: This is to document our ownership and control of the property at 151 E. Ninth Street, Dubuque, IA, also known as 901 Jackson Street. Legal description is CITY LOT LOT 379 & S 15' OF CITY LOT 380 Thank you, Tim McNamara, President Wilmac Property Company 801 Jackson St. Dubuque, IA 52001 563.556.8881 Development Team Building Owner Tim McNamara - Wilmac Property Company Contact Number: 563 - 556 -8881 email: timmc @mwci.net Developer /Project Manager John and Mary Gronen — President, Vice President - Gronen Restoration Office: 563.557.7010 email: maryg @gronenproperties.com Mobile: 563.213.0013 —John Mobile: 563.451.8664 — Mary Architect Jeff Morton — Principal, Jeffrey Morton Associates — Design /Engineering Architect Office: 563.585.4300 email: jell @jeffreymortonassociates.com Jim Jacobsen — History Pays — Historic Preservation Consultant Office: 515.274.3625 email: hp @raccoon.com Des Moines, IA David Arbogast — Architectural Conservator — Masonry Preservation Consultant Office: 563.355.1553 email: arbogast7 @gmail.com Davenport, IA Legal and Accounting Flint Drake — Drake & Freund — Local Legal Counsel Office: 563.582.2000 email: fdrake @drakefreund.com Mike Welbes — Honkamp, Krueger & Co. — Local Accountant Office: 563.556.0123 email: hdeininger @honkamp.com Construction Management Jim Urell — President, Covenant Construction Group, Inc. — Construction Manager Mobile: 563.564.1762 email: jimu777 @aol.com Shawn Hilborn — Portzen Construction — Project Superintendent Mobile: 563.543.8094 email: shilborn @pci dbq.com Kyle Fitzgerald — Sustainable Deconstruction — Deconstruction Manager Mobile: 563.542.6867 email: kylefitz2003@aol.com Support Team Jolene Kingeter — Gronen Restoration — Business Manager Office: 563.557.7010 email: jolenek @gronenproperties.com Nancy Kann — Gronen Restoration — Project Management /Tenant Development Mobile 563.580.7257 email: nancyk @gronenproperties.com Laurie Stelpflug — Gronen Restoration — Residential Property Management /Leasing Office: 563.557.7010 email: lauries @gronenproperties.com Barb Sergio — Gronen Restoration — Controller Office: 563.557.7010 email: barbs @gronenproperties.com