Expansion of HPC Revolving Load FundTHE CITY OF
DuB E MEMORANDUM
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January 31, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager -~
SUBJECT: Expansion of Historic Preservation Revolving Loan Fund
Planning Services Manager Laura Carstens recommends City Council approval of the
expansion of the Historic Preservation Revolving Loan Fund to the Old Main Historic
District and to individually designated historic properties that lie outside the City's
historic districts.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Laura Carstens, Planning Services Manager
TTiE CITY OP
DuB E MEMORANDUM
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January 30, 2007
TO: Michael C. Van Milligen, City Manager
FROM: Laura Carstens, Planning Services Manager `~~'°~.-~
SUBJECT: Expansion of Historic Preservation Revolving Loan Fund
INTRODUCTION
This memorandum transmits a request by Premier Bank to expand the Historic Preservation
Revolving Loan Fund (HPRLF) to the Old Main Historic District and to individually designated
historic properties. Information on the HPRLF and a map of the historic districts are enclosed.
DISCUSSION
Created in 2001 with $200,000 from the General Fund, the HPRLF provides loans up to $25,000
for 10 years at 3% interest for exterior improvements to properties in the Jackson Park,
Cathedral, West 11th Street, and Langworthy Historic Districts. Loan applications are subject to
design review and approval by the Historic Preservation Commission (HPC).
In 2005, the City Council approved a General Obligation Capital Loan Note fora $200,000 loan
from Premier Bank for 10 years, interest free, for the HPRLF. The HPRLF has $200,000 in the
Premier Bank Revolving Account (Fund No. 1001247 54210) and $47,503 in the original City
Revolving Account (Fund No. 2651247 62764).
The original HPRLF is limited to the 4 primarily residential historic districts: Cathedral, Jackson
Park, Langworthy, and West 11th Street. The Old Main Historic District was not included because
the Downtown Rehabilitation Loan Program is available to properties in Old Main.
With the present demand for Downtown Rehab Loans exceeding the available funds, the
expansion of the HPRLF will provide much-needed funding to help close financial gaps for
properties in the Old Main Historic District.
Expansion of the HPRLF to include properties that receive individual historic designation
provides an additional financial incentive for owners of historic properties that lie outside the
City's historic districts to seek this special designation.
RECOMMENDATION
Expansion of the HPRLF to the Old Main Historic District and to individually designated historic
properties requires modification of the HPRLF guidelines. The loan agreement with Premier Bank
allows changes to the HPRLF guidelines by mutual consent of Premier Bank and the City. The
HPC supports the request.
I recommend that the City Council approve the expansion of the HPRLF to the Old Main Historic
District and to individually designated historic properties.
Enclosures
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Purpose
Preservation loans are available on a
competitive basis to property owners in the four
primarily residerltlal historic districts or who
own a City designated Landmark or /ndMdua/
hlstodc propeKy for exterior rehabilitation
projects that meet the Secretary of the Inte-
rior's StandaMs for Rehabilitation.
This ban fund provides posllws Nrcegtirss to
Properlyowners b/ tftsse d~ticts to maNrtaln
and ipyrrawe the Boar's acts
herRage.
THE CITY OF
DUB E
^
Aleming Serdoee Department
CkY 11eN
sow.l3Hrsaeet
Dubuque ~ 52001-4864
Phone: (563) 5894210
Fik Vii) 5894221
' Earalk' orb
Applicant Eligibility
The owner of any property at least 50 years old
and located in Jackson Park, Cathedral, W. 11th
Street or Langworthy Historic Preservation Dis-
tricts or designated as a City Landmark or individ-
ualhistoric property.
Loan Amoun erms
Up to $25,000
3% interest rate
'~. ~ 10 years
Monthly principal and interest pay-
ments begin after project comple-
tion, but not longer than 6 months after loan clos-
ing. Limit one loan outstanding per building.
Work must be initiated within three (3) months
and completed with six (6) months from date of
Historic Preservation Commission approval. The
Commission may grant additional time, if needed.
Security
Preferably at least a 2nd mortgage position and
promissory note, or an amount not to exceed
100% of loan-to-value. The property value will be
based on the assessed value, or on the ap-
praised value after improvements if the assessed
value is not a good indicator.
Application Period
Initial open enrollment for first 60 days of the
fiscal year (July and August); applications ac-
cepted until all funds are committed.
Assistance with the design review portion of the
application is available during regular business
hours by appointment at the Planning Services
Department, 50 W. 13th Street, Dubuque (City
Hall).
Eligible Improvements
F~cterior work that results in property improvements that
meet the Secretary of the Interior's Standards and
Guidelines for Rehabilitation.
Work must meet the Secretary of the Interior's
Standards and Guidelines for Rehabilitation and any
specific design standards established for the pertinent
Historic Preservation District.
Project Ranking
Projects will be ranked by the architectural or historical
significance of the building, and the priority of the work.
The architectural or historical significance will be based
on the Historic Properties inventory of 1978-1979 and
Architectural/Historic Survey/Evaluation of 2000-
2005.
Highest priority will be given to projects that result in
saving, restoring, or reconstructing original building
elements, using original materials that re-
flect the architectural character or signifi-
cance of the property.
Second priority will be given to projects that
use preservation alternatives, such as different mate-
rials, techniques or methods for rehabilitation of his-
toric buildings.
Projects will receive a lower rating if the property owner
is a previous borrower under this program.
Review and Approval
Applications will be accepted during regular business
hours at the Housing and Community Development
Department, 1805 Central Avenue, Dubuque, Iowa.
All applications must include required information
on income, specific work proposed, and at least
two estimates received from full-time contrao-
tors licensed and insured by the State of Iowa.
Homeowners may do the work themselves; writ-
ten quotes on the costs of materials must be pro-
vided. Labor by homeowners is not covered.
Incomplete applications will not be processed.
A loan review committee of City Staff and Historic
Preservation Commissioners will rank applications
prior to income verification, and make
recommendations relative to loan amount, and
review compliance with City Housing, Building
and Historic Preservation Codes, and with
Section 106 of the Code of Federal Regulations.
The Historic Preservation Commission will review
the loan application, the proposed work, and the
committee's recommendations. The Commission
must approve a Certificate of Appropriateness for
all proposed work prior to issuance of permits or
processing of loans.
All applicable City reviews and permits must be
completed; e.g., building permits, rental license,
housing inspection, before any work begins.
Work begun prior to obtaining a required permit,
review or ap-
proval will not
be eligible for
loan assistance.
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