Smart Growth Development_Committment of FundsMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Smart Growth Development
DATE: November 27, 2013
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
Economic Development Director Maurice Jones and Assistant City Manager Teri
Goodmann recommend the City commit $2,000 for the efforts of the Smart Growth
Development group as they work toward improving the State Historic Tax Credit
programs and other programs that help fund many Dubuque rehabilitation projects.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
JA)1+
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Teri Goodmann, Assistant City Manager
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
Dubuque
bitetti
All- America City
1 I
2007 • 2012 • 2013
November 27, 2013
FROM: Maurice Jones, Economic Development Director
Teri Goodmann, Assistant City Manager
SUBJECT: Smart Growth Development
PURPOSE
The purpose of this memo is to request funding for the statewide initiative of Smart
Growth Development.
BACKGROUND
In 2009, several statewide developers combined resources and efforts to increase the
cap on the State Historic Tax Credit program from $20 million to $50 million. Many local
people were involved in this legislative effort, including local developers who rely on the
historic tax credits, city staff and Main Street interests. The IBM project provided much
of the needed momentum to convince legislators and the Governor that State Historic
Tax Credits not only enhance sustainable development of historic structures, but also
create jobs.
These efforts over the past number of years have brought over $10 million to the
historic Roshek Building and millions to other historic Dubuque structures, including the
Hotel Julien, Caradco and the Linseed Oil Paint Building. The State Historic Tax Credit
Program is an essential component of the successful redevelopment effort in the
Historic Millwork District.
The City of Dubuque contributed $2,000 in support in 2012.
DISCUSSION
Much work lies ahead for the continued effort to improve the State Historic Tax Credit
Program. The main objectives for 2013 -2014 include:
1) State Level Policy
2) Raise the cap of the State Historic Tax Credit back to $50 million
3) Defend Tax Increment Financing
4) Increase usage of the State Historic Tax Credit Program small project fund
5) Funding of the Workforce Housing Tax Credit fund
6) Increase the Brownfield/ Grayfield Tax Credit Program
These changes will be beneficial for multiple projects across the State, but in Dubuque,
it will particularly benefit the planned improvements in the Historic Millwork District. This
work demands the daily attention of an advocate in the Iowa Assembly. Continuing the
successful work during the next legislative session depends upon having the funds to
pay an advocate.
Attached is a summary a summary of some of the accomplishments achieved by Smart
Growth Development of the past four years.
Smart Growth Development is an Iowa non - profit organization with a three member
governing board which includes John Gronen, Dubuque; Jim Walsh, Waterloo; and
Jason Stone, Des Moines.
RECOMMENDATION
That the City commit $2,000 for the efforts of the Smart Growth Development group as
they work toward improving the State Historic Tax Credit programs and other programs
that help fund many Dubuque rehabilitation projects.
CC: Phil Wagner, Assistant Economic Development Director
2
SMARTG ROTH
DEVELOPMENT
American Trust & Savings
BH Equities, LLC
BRE Inc.
Chatham Bay Group
City of Des Moines
City of Dubuque
Commerce Bank
Davenport One
Davis, Brown, Koehn,
Shors and Roberts
Downtown Partners
(Sioux City)
Drake & Freund, P.C.
Dubuque Main Street
Fischer Companies
Greater Des Moines
Partnership
Gronen Restoration
Historic Equity, INC
Hotel Fort Des Moines
Hubbell Realty Co.
Indigo Dawn
Jeffrey Morton Associates
JSA Development
Liberty Building
Development Group
Mako One Corporation
Miller Development Group
Nelson Construction
New Market Investors
Preservation Iowa
reNew Design Studio
Restoration St. Louis
Ryan Companies
Siouxland Chamber
Steele Capital
Management, Inc.
Sustainable Neighborhood
Builders
Weinberg Investments, Inc.
World Food Prize
Foundation
Ambitious Goals...
Proven Results...
2009
• Raised cap of Iowa's Historic Tax Credit Program from $20M to $50M.
• Led the charge for the creation and passage of the Federal Heartland Disaster Bill.
• Improved SHTC program rules dealing with "Lottery" method.
2010
• Defended the SHTC program against changes to refund ability and transferability .
• Led the push for the creation of a state level workforce housing grant program.
• Worked in collaboration with City and County organizations to block harmful modifications to the TIF program.
2011
• Initiated and led the charge for the passage of SF -521, which enacts administrative changes to the SHTC.
o Additional 24 months to line up financing and complete construction /redevelopment.
o Eliminates $100,000 cap in rehabilitation cost per residential unit .
o Changes QRE period to when the first qualified cost is incurred and ending with the end of the taxable
year in which the property is placed in service.
• Defended the SHTC program from further budget cuts.
• Collaborated with groups for the creation of the Brownfield /Grayfield Tax Credit.
2012
• Spearheaded the effort to pass legislation allowing for the Disproportionate Allocation of SHTC's.
• Defended against damaging changes to Iowa's Tax Increment Financing program.
2013
• Coordinated the successful lobbying effort on SF436.
o Increases the QRE Cap for small projects from $500,000 to $750,000.
o Projects that incur 50% of QRE's within standard 60month timeline are granted a 12month extension.
o Changes the definition of "substantial rehabilitation" on a commercial property to; at least fifty
thousand dollars or fifty percent of the assessed value.
• Led negotiations on a much needed increase to the SHTC cap. Unsuccessful
o $55 million a year for FY14,15,16 ($10 million increase)
o $45 million a year for each fiscal year there after.
Questions? Contact:
John Gronen
Smart Growth Development
P.O. Box 3134
Dubuque, Iowa 52004
Phone: 563 213 -0013
Email: maryg @gronenproperties.com
J