IEDA Muilti-Family New Production Round 5Masterpiece on the Mississippi
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Iowa Economic Development Authority - Multi - Family New Production
Round 5
DATE: July 11, 2013
The City of Dubuque has received notice of receipt of the Multi - Family New Production
Community Development Block Grant Award for the Linseed Oil Paintworks Building at
901 Jackson Street.
I respectfully request Mayor and City Council approval to negotiate and execute an
amendment to the existing funding agreement with the Iowa Economic Development
Authority.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Phil Wagner, Acting Economic Development Director
SUBJECT: Multi - Family Rental Unit Production — Round 5 for 901 Jackson St
DATE: July 8, 2013
Dubuque
All- America City
11111
2012
PURPOSE
This memorandum seeks City Council acceptance of an award of Community Development
Block Grant funding from the Iowa Economic Development Authority to create multi - family rental
units at the former Linseed Oil Paintworks Company Building located at 901 Jackson Street.
BACKGROUND
In June 2012, the City Council approved an application on behalf of Tim McNamara and the
Wilmac Property Group to the Iowa Economic Development Authority (IEDA) for their Multi -
Family New Production Round 4 Program. The program, which awarded Community
Development Block Grant (CDBG) disaster funds as a result of the 2008 floods, was highly
competitive and the property at 901 Jackson Street, formerly the Linseed Oil Paintworks
Company Building, was not selected.
In November 2012, the State announced the creation of the Multi Family Rental Unit Production
Round -5 (NP5) program. On February 18, 2013, the City Council once again approved a
resolution supporting an application for CDBG disaster funds for the property located in the
Historic Millwork District. The application requested $2,420,863 as part of an estimated
$4,355,000 total project cost that would result in the creation of 16 apartment units, of which 9
required occupancy by an individual or family earning less than 80% of the average median
income. In Dubuque County, that figure for a single individual is $37,050 and $42,350 for a
family of two.
On June 19, 2013, Mayor Buol received a letter from the I EDA stating the project at 901
Jackson Street received an award of $2,203,913 in total project costs and $44,977 in general
administration costs, through the NP5 program.
DISCUSSION
The CDBG financial assistance will be provided in the form of a 10 -year forgivable loan, forgiven
in full at the end of the 10 -year compliance period. If the assisted rental project is sold or
transferred, or converted to an alternate (non - residential) use, during the 10 -year period
following completion and acceptance, the entire amount of the CDBG forgivable loan shall be
repaid. Davis -Bacon prevailing wage requirements will apply to the entire project.
The project is valuable for the Millwork District, Downtown Dubuque, and the entire city for two
reasons. First, the project fosters sustainability by allowing for the adaptive reuse of an older,
under - utilized building in the city's urban core. Second, it helps address the critical shortage of
workforce housing in the community. A 2009 Iowa Finance Authority study indicated a need for
557 new rental units in Dubuque, with an emphasis on downtown locations. The City has not
met the needs identified in the study. Meanwhile, businesses and industries continue to relocate
or expand in Dubuque, putting further strain on the rental housing market.
In addition to providing 16 new residential units, the Linseed Oil Paintworks Company Building
will also have a handicapped accessible social area and a garden on the roof. The Developer is
also considering a small solar system to supplement the electrical system.
The IEDA is requiring execution of the contract by July 31, 2013. Construction must initiate by
October 1, 2013, as the project was identified as "ready to proceed" in the application to the
State. A Development Agreement providing incentives including a ten -year tax increment
financing rebate, $160,000 in the downtown housing incentive program, and $35,000 in facade,
design and financial consultant grants was approved on March 18, 2013. The project will also
be utilizing State Historic Tax Credits. The Development Agreement required the completion of
the project by December 31, 2014.
RECOMMENDATION
I recommend that the City Council approve the attached resolution authorizing the acceptance
of a supplemental Community Development Block Grant award and subsequent amendment of
the CDBG Housing Disaster Recovery Fund Contract between the Iowa Economic Development
Authority and the City of Dubuque, on behalf of Wilmac Property Company for the Linseed Oil
Paintworks Company Building project at 901 Jackson Street. The contract will amend the
previous contract between the City and the IEDA that includes all disaster recovery housing
projects.
F: \USERS \Econ Dev \Linseed Oil Paintworks (Betty Building) \NP5 Application\20130708.docx
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,K)I,At2L 275
AUTHG
200 Cast Grand Avenue I Des Moines, Iowa 50309 USA I Phone: 515.725.3000
June 19, 2013
Roy D. Buol, Mayor
City of Dubuque
City Hall - 50 W. 13th Street
Dubuque, IA 52001
SUBJECT: Dubuque, 08 -DRH -212 - Multi-family New Production Round 5
Dear Mayor Buol:
I am pleased to inform you that the Iowa Economic Development Authority (IEDA) will amend the
Dubuque, 08- DRH -212 contract by adding a Supplemental Community Development Block Grant
(CDBG) award in an amount not to exceed $2,203,913 for the project total plus General
Administration amount not to exceed $44,977 for Multi- family New Production. Specifically, this
amendment will award:
Historic warehouse conversion creating 16 rental apartments in the City of Dubuque.
IEDA has received these funds from the United States Department of Housing and Urban
Development ( "HUD ") under the Supplemental Appropriations Act of 2008 (Pub. L. 110 -252) and
under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009
(Pub. L. 110 -329) under CDBG Program, in order to assist in the recovery from the 2008 floods.
Your amendment of contract 08- DRH -212 will have an effective date of the date of this letter,
pending successful contract negotiation and complete execution. The Amendment between
Dubuque and IEDA will be following shortly. Upon its receipt, please review the document
thoroughly, and sign and return it to IEDA. With the Amendment's return we will execute and return
a copy for your files.
Environmental
No HUD funds or non -HUD funds may be committed to the project until the applicant has
secured environmental approval from the State, as provided in HUD regulation 24 CFR Part 58.
In addition, pending environmental approval and pursuant to 24 CFR Part 58.22(a), no grant
recipient or participant in the development process, including contractors or sub - contractors,
may undertake an activity that may limit the choice of reasonable alternatives. Such choice
limiting actions include real property acquisition, leasing, rehabilitation, repair, demolition,
conversion, and new construction. However, you may incur costs for those certain activities that
are "exempt" from the environmental review requirements under 24 CFR Part 58.34. These costs
include administration, environmental review, engineering, and design. Costs for exempt activities
may be incurred as of the date of this letter but cannot be reimbursed by IEDA until execution of the
Contract.
AND the following provided:
® Location of the project
® Description: 2 twin homes, etc.
® Amount per project (relevant if multiple projects are awarded under one contract)
Governor Terry E. Branstad 1 Lt. Governor Kim Reynolds I Director Debi V Durham
Davis -Bacon
Residential Only:
The Davis -Bacon prevailing wage requirements will apply to all projects that contain eight (8) or
more units. Prior to seeking bids for your project, it will be necessary to request and obtain the
appropriate wage determination to ensure the prevailing wages are factored into the construction
bids. Please contact the IEDA early in the pre -bid process to ensure the project scope is clearly
defined and understood and the appropriate wage determination is issued. The administration and
compliance monitoring will follow the guidance provided in the HUD 1344.1 Rev. 2 handbook,
Federal Labor Standards Requirements in Housing and Urban Development Programs.
Residential with Commercial:
The Davis -Bacon prevailing wage requirements will apply to all projects that contain eight (8) or
more units. Prior to seeking bids for your project, it will be necessary to request and obtain the
appropriate wage determination(s) to ensure the prevailing wages are factored into the construction
bids. Since your project includes both residential and commercial construction, it may be necessary
to obtain two separate wage determinations dependent on the type of construction work to be
completed. Please contact the IEDA early in the pre -bid process to ensure the project scope is clearly
defined and understood and the appropriate wage determination is issued. The administration and
compliance monitoring will follow the guidance provided in the HUD 1344.1 Rev. 2 handbook,
Federal Labor Standards Requirements in Housing and Urban Development Programs.
Contact Dan Narber at dan.narber @iowa.gov with any Davis -Bacon questions.
IF ANY CONDITIONS CONTAINED IN THIS LETTER ARE NOT SATISFIED AT THE SOLE DISCRETION
OF IEDA, OR THE AMENDMENT IS NOT FULLY EXECUTED BY JULY 31, 2013, THIS AWARD OF FUNDS
SHALL BE RESCINDED, AND NO REIMBURSEMENT IS AVAILABLE FOR ANY COSTS INCURRED BY THE
CONTRACT RECIPIENT WITH RESPECT TO THIS AWARD.
In your application, you identified your project(s) as being "ready to proceed" (as stated in the
Attachment P Multi - Family New Production Guidelines). The IEDA will also give you until October 1,
2013 to start construction. If construction is not underway by this date, this award of funds shall be
rescinded, and no reimbursement will be available for any costs incurred by the Contract Recipient.
If you have any questions, please call your project manager Ann Schmid at 515- 725 -3078 or e -mail
ann. Schmid @iowa. gov.
Sincerely,
Deborah V. Durham
Director
Enclosure
Cc: Dave Heiar, City of Dubuque
Tim MCNamara, Wilmac Property Company
File
Please have an authorized representative sign this page and return it to the IEDA, if you intend
to accept this CDBG Supplemental award.
Dubuque, acting by and through its duly authorized officers, hereby accepts the award described in
this letter (Award), acknowledges that receipt of this Award is contingent upon the satisfaction of all
conditions of the Program, the receipt of funds by IEDA with respect to the Award, and the execution
of the Contract, and agrees to be bound by all program requirements of the CDBG program, IEDA
guidelines and the Contract with respect to this Award.
Dubuque
08 -DRH -212
Project M
By: _
Name: Roy D. Buol
Mayor
Title:
Prepared by: Phil Wagner, Acting ED Director, 50 West 13th Street, Dubuque IA 52001 563.589.4393
Return to: Kevin Firnstahl, City Clerk, 50 West 13th Street, Dubuque IA 52001 563.589.4120
RESOLUTION NO. 205 -13
RESOLUTION AUTHORIZING THE ACCEPTANCE OF COMMUNITY DEVELOPMENT
BLOCK GRANT HOUSING DISASTER RECOVERY FUNDS FROM THE IOWA ECONOMIC
DEVELOPMENT AUTHORITY ON BEHALF OF THE WILMAC PROPERTY COMPANY
Whereas, the City of Dubuque worked with Wilmac Property Company to prepare a
Community Development Block Grant (CDBG) Housing Disaster Recovery Fund Multi - Family
Unit Production Round 5 grant application to assist in the funding of residential rehabilitation for
the Linseed Oil Paintworks Company Building at 901 Jackson Street; and
Whereas, the Iowa Economic Development Authority (IEDA) intends to amend CDBG
Contract #08 -DRH -212 between the City of Dubuque and the Iowa Economic Development
Authority authorizing a supplemental award of $2,248,890 of CDBG Housing Disaster Recovery
Funds for the Linseed Oil Paintworks Company Building; and
Whereas, the IEDA has requested the acceptance of the award prior to the receipt of
the contract amendment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Supplemental Community Development Block Grant award of
$2,248,890 is approved.
Section 2. That the Mayor is hereby authorized and directed to execute an
amendment to CDBG Contract #08 -DRH -212 on behalf of the City of
Dubuque and the City Manager is hereby directed to submit said
amendment to the Iowa Economic Development Authority for its
approval, and to take such other action as may be necessary with
respect to the amended contract.
Passed, approved and adopted this 15th day of July, 2013.
Attest: Ro /1 Buol, Mayor
Kevin F'r stahl, City erk
F: \USERS \Eton Dev \Linseed Oil Paintworks (Betty Building) \NP5 Application \20130708 Resolution approving contract.docx
S_"CS 'kE EVE S t €t ) PI
200 East Grand Avenue Des Moines, Iowa 50309 USA, Phony. 51 725 3000
IZ t saecof }rf'i €f;=
August 15, 2013
The Honorable Roy D. Buol, Mayor
City of Dubuque
City Hall - 50 W. 13th Street
Dubuque, IA 52001
RECEIVED
13 AUG 2 I AM ID: 18
City Clerks Office
Dubuque, IA
SUBJECT: Contract Number 08 -DRH -212, Amendment # 5
Dear Mayor Buol:
The Iowa Economic Development Authority recently amended the CDBG Contract for Dubuque, in response to
your request. Enclosed is your copy of the executed amendment. Changes made by this amendment are now
in effect.
Please file your copy of this amendment with your original contract document so that you will have current
information on the status of your contract. If your amendment includes a budget change be sure that is
reflected on your next "Request for Payment /Activity Status Form." The forms along with the Management
Guide may be found at IEDA's website at
http:// iowaeconomicdevelopment .com /CommunityDevelopment /CDBG.
If you have any questions please feel free to contact your Project Manager, Ann Schmid, at (515) 725 -3078 or
e -mail at Ann.Schmid @iowa.gov.
Sincerely,
Tim Metz
Contract and Compliance Manager
Enclosure
cc: Janet Walker, City of Dubuque
Ann Schmid, IEDA
Governor Teny E. Branstad j Lt. Governor Kim Reynolds
Director Debi V. Durham
Iowa Economic Development Authority
Community Development Block Grant (CDBG) Program
Disaster Recovery
Contract Amendment
Recipient: Dubuque
Contract Number: 08 -DRH -212
Contract Amendment Number: 5
Amendment Effective Date: June 19, 2013
The Iowa Economic Development Authority (IEDA) hereby amends the above referenced Community
Development Block Grant (CDBG) Program contract by increasing the budget for a Multi - Family New
Production - Round 5 award. This increase is $2,203,913 plus $44,917 for general administration. Also, in
this amendment, the contract end date will be extended to December 31, 2014.
Linseed Oil Paintworks warehouse $2,203,913
City General Administration $ 44,907
The contract by and between the Iowa Economic Development Authority ( "Department or IEDA ") and Dubuque
( "Recipient ") is amended as of the date shown above as follows:
AMEND each Article in the Contract that refers to "Attachment A, Program Description and Budget" to
"Attachment A, Program Description and Budget, as amended."
AMEND AWARD AMOUNT from $ 10,237,200 to $12,486,090.
AMEND Contract End Date to: December 31, 2014.
Except as otherwise revised above, the terms, provisions, and conditions of the Contract remain unchanged and
are in full force and effect.
RECIPIENT: Dubuque
BY:
Mayor ubuque
IOWA ECONO I C7PMENT AUTHORITY
BY:
Timothy R'�Waddell, Division Administrator
IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET
ATTACHMENT A
Name of Recipient: DubUque
Contract Number: 08-DRH-212
Activity 4: 876 Unit Production
..:#F95FANQP
88 Total Units
55 LMI
DATE: June 19, 2013
LMI
$12,441,113
GENERAL ADMINISTRATION 181
TOTAL BUDGET:
$44,977
$12,486,090
GABCRRecipients\Disaster\08DRH\Dubuque - 212 \Dubuque 08-DRH-212AttachAAmend5.xlsx