Downtown Housing Incentive Program_Amending Program GuidelinesTHE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
kital
All- America City
II 111!
2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amending Program Guidelines for Downtown Housing Incentive Program
DATE: April 30, 2013
Economic Development Director Dave Heiar is recommending City Council approval of
an amendment to the program guidelines for the City of Dubuque's Downtown Housing
Incentive program to allow incentives for residential units of less than 650 sq. ft.
The City has a long established practice of offering various programs through tax
increment financing revenues that increase economic development, housing, and
historical rehabilitation opportunities in the Greater Downtown Urban Renewal area.
Since 1999, the City has awarded or committed 28 low- interest downtown rehabilitation
loans, most valued at $300,000 each. Since 2007, the City has awarded or committed
24 matching facade grants for a maximum of $10,000 each, 15 matching planning and
design grants for a maximum of $10,000 each, and 9 matching financial consultant
grants valued at a maximum amount of $15,000 each. Additionally, since 2010, 216
housing units were approved in the Downtown utilizing the $10,000 per unit Downtown
Housing Incentive Program.
When the program guidelines were last amended, the City placed a minimum size
restriction on each unit. All units had to be at least 650 sq. ft. It has been called to the
City's attention that the workforce housing market also has a need for these smaller
units. Based on this need, staff is recommending a modification to the City's guidelines
to allow incentives for these smaller units if the units meet the guidelines for Federal or
State Historic Tax credits and are a self- contained unit which include a private bathroom
and kitchen facility.
This will allow quality smaller units without providing incentives for efficiencies with
shared facilities.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kr,„709,,,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
David J. Heiar, Economic Development Director
2
Masterpiece on the Mississippi
DATE: April 29, 2013
TO: Michael C. Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Amending Program Guidelines for Downtown Housing Incentive
Program.
Dubuque
Leal
All-America City
11111
2012
Introduction
The purpose of this memorandum is to forward for City Council review and approval an
amendment to program guidelines for the City's Downtown Housing Incentive program.
Background
The City has a long established practice of offering various programs through tax
increment financing revenues that increase economic development, housing, and
historical rehabilitation opportunities in the Greater Downtown Urban Renewal area.
Since 1999 the City has awarded or committed 28 low- interest downtown rehabilitation
loans, most valued at $300,000 a piece. Since 2007 the City has awarded or
committed 24 matching facade grants for a maximum of $10,000 each, 15 matching
planning and design grants for a maximum of $10,000 each, and 9 matching financial
consultant grants valued at a maximum amount of $15,000 each. Additionally, since
2010, 216 housing units were approved in the Downtown utilizing the $10,000 per unit
Downtown Housing Incentive Program.
Discussion
When the program guidelines were last amended, the City placed a minimum size
restriction on each unit. All units had to be at least 650 sq. ft. It has been called to our
attention that the workforce housing market also has a need for these smaller units.
Based on this need, staff is recommending a modification to our guidelines to allow
incentives for these smaller units if the units meet the guidelines for Federal or State
Historic Tax credits and are a self- contained unit which include a private bathroom and
kitchen facility.
This will allow quality smaller units without providing incentives for efficiencies with
shared facilities.
Recommendation
I recommend that the attached resolution amending program guidelines for the
Downtown Housing Incentive Program be approved to improve support of the City's
Downtown redevelopment by allowing for smaller residential units that meet specific
criteria.
Action Step
The Action Step for the City Council is to review and approve the resolution to adopt the
Updated program guidelines.
attachments
F: \USERS \Econ Dev \Program Handouts\20130429 MEMO Amend Downtown Housing Incentive Guidelines.docx
Prepared by: David Heiar, Economic Dev Director 50 West le Street, Dubuque IA 52001 563 589 -4393
Return to: Kevin Firnstahl, City Clerk, 50 West 13'x' Street, Dubuque IA 52001 563 589 -4121
RESOLUTION NO. 147 -13
AMENDING THE GUIDELINES FOR THE DOWNTOWN HOUSING INCENTIVE
PROGRAM WITHIN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT
Whereas, the City of Dubuque has a long established practice of offering various
programs, through tax increment financing revenues, that increase economic development,
housing and historical rehabilitation opportunities in the Greater Downtown Urban Renewal
District; and
Whereas, since 2010, the City of Dubuque has utilized the $10,000 per unit
Downtown Housing Incentive Program to assist private developers in the creation of 216
housing units; and
Whereas, this incentive program is regulated by various guidelines and
Whereas, it is in the City's best interest to amend the guidelines to allow incentives
for units with less than 650 sq. ft.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the guidelines be amended to provide for the following: Units
smaller than 650 square feet will not be eligible for this incentive, unless the project meets
the guidelines for Federal or State Historic Tax Credits and is a self- contained unit with a
private bathroom and kitchen.
Section 2. All other guidelines for this program shall remain the same.
Passed, approved and adopted this 6th day of May, 2013.
Attest:
Kevi irnstahl, C ty Cler
F: \USERS \Econ Dev \Program Handouts \Downtown Housing Incentive Program\20130429 Resolution for Amend Downtown Housing
Incentive Programs.docx
oy D. Buol, Mayor
Economic Development
Departm ent
City Hall — Second Floor
50 West 13th Street
Dubuque, Iowa 52001 -4864
(563) 589 -4393 Office
(563) 589 -1733 Fax
(563) 589 -6678 TDD
Masterpiece on the Mississippi
October 30, 2012
DOWNTOWN HOUSING INCENTIVE PROGRAM
David J. Heiar
Economic Development Director
dheiarat citvofdubuque.ora
Phil Wagner
Asst. Economic Development Director
pwaanera citvofdubuaue. or
50 West 13th Street
Dubuque, IA 52001
563 -589 -4393
Proiects eligible to receive assistance from this established pool of funds must meet the
following requirements:
• The project must assist in the creation of new market -rate downtown rental and/or
owner- occupied residential units within the Greater Downtown Urban Renewal District.
• The project must be the rehabilitation of an existing structure.
• Within the Washington Neighborhood, rental units must be located above a commercial
component on the first floor of the building unless the project is rehabilitating or reusing a
former church or school building.
• Exterior alterations are subject to design review and approval. The Historic District
Guidelines shall apply to projects located in Historic Preservation District. The Downtown
Design Guidelines shall apply to all other project locations. Projects which conform to the
applicable guidelines may be reviewed and approved by the City Planner. Projects that
do not strictly conform to the applicable guidelines will be forwarded to the Historic
Preservation Commission (HPC) for consideration. New construction or substantial
rehabilitation projects may also be considered by the HPC. The process for review is at
the discretion of the City Planner. Guidelines can be viewed and downloaded at
httb:llwww.citvofdubuque.org /design guidelines.
• Any signs on the property that do not comply with City zoning regulations and design
guidelines must be included in the design review and improved to comply with applicable
City Codes. Submittal must include the design materials and colors that will be used on
the sign face, how the sign will be displayed, and any lighting proposed.
• Include detailed drawing of the proposed project. The plans should include dimensions
and architectural details and label materials. Plans prepared by a design professional
(e.g. architect or draftsperson) are strongly recommended. Applications without detailed
drawings will not be considered complete and will not be accepted by the City.
• Deviation from an approved project plan may disqualify the project from the program.
• Preference will be given to projects that also utilize Federal and/or State Historic Tax
Credits.
• No more than $10,000 in assistance will be considered per residential unit.
• In general, no more than $750,000 will be provided to a single project.
• No developer fee will be permitted until all city assistance is paid or satisfied in full.
• The City will disperse awarded funds for the benefit of the project once the
project is completed and a Certificate of Occupancy has been given for the housing
units.
• Each approved project will also be eligible to receive site - specific Tax Increment
Financing (TIF) for up to a 10 year period, depending on the project type and scope.
• A minimum of 2 new housing units must be created in the project.
• Units smaller than 650 square feet will not be eligible for this project, unless the project
meets the guidelines for Federal or State Historic Tax Credits and is a self- contained unit
with a private bathroom and kitchen facility.
• No residential units will be allowed to have a restriction of less than 80% of the median
income.
• No more than 65% of the units of any project can have a restriction of 80% of the
median income.
• A project that is funded by Low Income Tax Credits (LITC) is not eligible.
• The owner(s) of the property must certify that all other property in the City of Dubuque in
which the owner(s) has any interest, complies with all applicable City of Dubuque
ordinances and regulations, including, but not limited to, housing, building, zoning, fire,
health, and vacant and abandoned building regulations.
F: \USERS \Econ Dev \Program Handouts \Downtown Housing Incentive Program\20121029 Downtown Housing Incentive Final.docx