Multi-Family Housing Production Round 6 Community Development Block Grant (CDBG) ApplicationTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: CDBG Multi -Family Rental Unit - New Production - Round 6
DATE: August 12, 2014
Dubuque
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AI -America City
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2007 • 2012 • 2013
The City of Dubuque received three applications for CDBG Multi -Family Rental Unit
New Production — Round 6 funding. All three projects had excellent proposals for
quality, affordable rental housing in the downtown area. However, the program
stipulates that CDBG Entitlement Cities may submit no more than two applications.
Therefore, the selection of the two proposals recommended for submittal to the State
centered around their readiness factor and having provided all materials on the
application checklist.
Economic Development Director Maurice Jones is recommending City Council
acceptance of two application for CDBG Multi -Family Rental Unit New Production —
Round 6 funding to create multi -family rental units in the Holy Ghost (old school and
convent) and St. Mary's (old school) buildings.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bt/1144 ,,,,.,
Mic ael 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
Masterpiece on the Mississippi
Dubuque
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All -America City
1111
111'
2007 • 2012 • 2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Miliigen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: CDBG Multi -Family Rental Unit — New Production — Round 6
DATE: August 11, 2014
INTRODUCTION
The purpose of this memorandum is to seek City Council concurrence and acceptance
of two applications for CDBG Multi -Family Rental Unit New Production — Round 6
funding to create multi -family rental units in the Holy Ghost (old school and convent)
and St. Mary's (old school) buildings.
BACKGROUND
The City Council has prioritized the redevelopment of the downtown area, as well as the
production of workforce rental housing. On June 2, 2014 the Iowa Economic
Development Authority (IEDA) announced Round 6 of the CDBG Multi -Family Rental
Unit — New Production funding program. This funding source provides funding to
projects that create housing units wherein 51 % of the units are occupied by tenants
making below 80% AMI. In Dubuque, that is approximately $38,850/annual, so
encompasses many young professionals.
After consultation with the Planning Department staff, the application materials were
emailed to a list of known developers, who may have shovel ready projects that would
qualify and be competitive at the State level.
DISCUSSION
The Economic Development Department received applications for three separate
projects:
• 75 W. 17th Street —submitted by Weaver Castle, LLC (16 units)
requesting $2,875,000 in CDBG funding.
• 1501 Jackson Street —submitted by St. Mary's Church Corporation (12 units),
requesting $1, 823,362 in CDBG funding.
• 2887-2901 Central Avenue —submitted by Frantz Community Investors (29 units)
requesting $2, 250,000 in CDBG funding.
Economic Development staff worked with staff from ECIA, who also review applications
for this program, to review and score the three applications based on program goals
and criteria, the project's likelihood of scoring competitively at the State level, as well as
the project's ability to further the City's housing and workforce development goals.
All three projects had excellent proposals for quality, affordable rental housing in the
downtown area. However, the program stipulates that CDBG Entitlement Cities may
submit no more than two applications. All proposals met program priority goals for
affordability, market need, and adaptive re -use. Therefore, the selection of the two
proposals we recommend submitting to the State essentially centered around their
readiness factor and having provided all materials on the Application Checklist.
Planning Department staff was consulted on the zoning status of 75 W. 17th Street, as
no documentation of proper zoning was submitted with the application. The project
development team has not yet requested to go in front of the Zoning Board of
Adjustment for the zoning variance they would need (since they'll have 16 units, instead
of 12 currently allowed) and would be short 5 parking spaces per code. The soonest
they could go in front of the board would be September 25, 2014. The property is also
in the Jackson Park Historic District, so will likely have other commission/board
meetings in front of them to address any exterior modifications.
As applications must be submitted to the State by September 2, 2014, this project would
not have all of the mandatory Application Checklist materials and therefore would be
rejected by the State. As such, we cannot submit the application for 75 W. 17th Street.
The development team for 1501 Jackson Street have already received approval for re-
zoning of the property from the Zoning Advisory Commission, which is scheduled for
City Council consent on August 18, 2014.
Therefore, given the high quality of all three applications, we would recommend the two
remaining projects, for the addition of forty-one (41) new workforce housing units in the
downtown area: St. Mary's (1501 Jackson Street) — contingent upon City Council's
consent of the Zoning Advisory Commission's recommendation to re -zone — and Holy
Ghost (2887-2901 Central Avenue).
RECOMMENDATION/ ACTION STEP
Based on the need for quality rental units in the downtown area, I recommend that the
City Council approve the attached resolutions to authorize an application for CDBG
Multi -Family Rental Unit — New Production — Round 6 on behalf of the Holy Ghost and
St. Mary's projects.
August 11, 2014
City of Dubuque
Economic Development
50 W. 13th St.
Dubuque, IA 52001
St. Mary Church Corporation
1229 Mt. Loretta Ave. • P.O. Box 479 • Dubuque, Iowa 52004-0479
Phone (563) 556-2580 • FAX (563) 556-5464
Iowa Economic Development Authority
200 E. Grand
Des Moines, IA 50309
Re: St. Mary's Jackson Street School
151 E. 9th St.
Dubuque, IA 52001
We very much appreciate the opportunity to submit this application for the Multi -family
(Rental) Unit Production - New Construction Program Round 6. St. Mary's Church,
Dubuque, Iowa Corporation, the current and long-time owner of the referenced property,
is committed to its success. The Friends of St. Mary's group, comprised of members of
the St. Mary's Corporation and various community members, has stepped forward to
support the coordination, fundraising and programming for the project.
The Gronen Restoration team has been hired as the Project Manager for the pre -
development, construction and design.
We would like to note these important and synergistic points relating to this project:
• St. Mary's is located in the heart of the Washington Neighborhood, the most
vulnerable neighborhood in the City of Dubuque.
• The Washington Neighborhood has been identified as a City Council priority.
• The School Building is part of the overall St. Mary's Campus revisioning process,
a prime example of Placemaking.
• This is a Public/private partnership hoping to create sustainable, livable space.
• It provides a new housing option for a diverse population.
• The project achieves the City of Dubuque Principles of Sustainability.
• It meets and surpasses Green Building standards in terms of energy efficiency.
• The project meets the Reasonable Mobility objective by incorporating Universal
Design into the Accessible unit, achieving greater mobility than normal ADA
requirements.
• It is a Mission -driven project
o Located in a blighted area of the urban core
o Located in a Low Income Census Tract
o Vacant building
o High walkability score
o Convenient access to public transportation
The Pre -development work is substantially complete. Construction documents and
environmental work are in progress. The project will be ready to go to bid as soon as the
environmental review is completed.
Again, thank you for this opportunity and should you have any questions or require
additional information, please do not hesitate to let us know. Thank you,
Respectfully,
Msgr. Thomas Toale Ph.D., Vice President
St. Mary's Church Dubuque, Iowa Corporation
City of Dubuque & The Iowa Economic Development Authority
July 29, 2014
Page 2
o Vacant building
o High walkability score
o Convenient access to public transportation
The pre -development work is substantially complete. Construction documents and environmental
work are in progress. The project will be ready to go to bid as soon as the environmental review
is completed.
Again, thank you for this opportunity and should you have any questions or require additional
information, please do not hesitate to let us know. Thank you,
Respectfully,
%RevE. 1-0-0414-
Rev.
. Msgr. Thomas Toale, Ph.D.
Vice President
St. Mary's Church Dubuque, Iowa Corporation
Multi -family (Rental) Unit Production —
New Construction Program
Round 6
Application
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 (Regional Super
COGs or Entilment Citites) for the Multi -family (Rental) Unit Production — New Construction Program — Round 6 for details
on how to submit this application. The Application Deadline is September 2, 2014.
CDBG Contract Recipient
Name of IEDA Disaster Recovery Recipient submitting this proposal: City of Dubuque
(please specify disaster recipient county or city only, not grant administrator, COG or developer)
Contact person name and contact inforrnation:
(contact can be city, county, grant administrator or COG)
Maurice Jones, Mjones@cityof Dubuque.org,563-589-4105
Qualifying Category: Replacing Units Lost Impact on Area Recovery X
Rental Applicant / Owner Information
St. Mary's Church, Dubuque, Iowa Corporation
Name of Developer / LLC
For -Profit D
Toale
*Non -Profit X
Thomas
Last Name (Individual Owner or CEO) First Name
42-0741001
Tax ID Number
563-556-2580
Contact Telephone #
T.Toale@arch.pvt.k12.ia.us
MI
Cell # Alternate Telephone #
E-mail Address
1229 Mt, Loretta Ave.
Current Mailing Address 1
Dubuque Dubuque IA 52003
City County State Zip Code
*If the applicant is a non-profit organization, submit documentation indicating non-profit status.
Please complete all of the following project information:
Total project cost $ 3,849,416
General Administration funds (Recipient's (Jse) $ 37,211
(Not to exceed two percent (2%) calculated by taking Project cost + .98 - Project Cost = Admin.)
Number of buildings in project 1 Total number of rental units in project 12 Total number of WI units in project 7
Section 11
Signature Page
Disclosures:
• This application serves as the initial point of entry to the Multi -family (Rental) Unit Production — New
Construction Program — Round 6. Additional information and documentation may be required to
determine eligibility.
• Authorized representatives of the Multi -family (Rental) Unit Production — New Construction Program —
Round 6 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 6. Use
of data obtained is limited to that necessary for the administration and management of this program by
Iowa Economic Development Authority pensonno|, those under contract with Iowa Economic
Development Authodty, 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 Multi -family (Rental) Unit Production — New Construction — Round 6
assistance, if youis 12 or more units, you must execute and consent to the recording of a 1U'
year forgivable (forgiven in full at the end of the 10'yaar compliance period), non -receding loan
documents and the agreernent for covenants and restrictions against the assisted property. If your
project is less than 12 units, you must execute and consent to the recording of a 5 -year forgivable
(forgiven in full at the end of the 5 -year compliance period), non -receding loan documents and the
agreement for covenarits and restrictions against the assisted property. If the Disaster -affected Rental
Property is sold, or title is transferred or conveyed before the 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 gulity 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 signingthimopp|icaUon.theundersk]nedacknow|odge(a)thatanyfimancka|aaaistonmareoaivedUhnoughthm
Multi -family (Rental) Unit Production — New Construction Prograrn — Round 6 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.
ntal Property) Signature Date
Joint ApplicanSignature
Date
We certify that we have reviewed this application (worked with the rental applicant on the final details of the proposal,
revising as necessary) and given our approval of this pject.
CDBG Disaster Recovery Recipient (Local Government -County or City only) Date
3
ulti-family (Rental) Unit Production —
New Construction Program
Round 6
Application
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 (Regional Super
COGs or Entilment Citites) for the Multi -family (Rental) Unit Production — New Construction Program — Round 6 for details
on how to submit this application. The Application Deadline is September 2, 2014.
CDBG ContractReclplen
Name of 1EDA Disaster Recovery Recipient submitting this proposal: _Dubuque__
(please specify disaster recipient county or city only, not grant administrator, COG or developer)
Contact person name and contact information:
(contact can be city, county, grant administrator or COG)
Jill Conners, City of Dubuque, 50 West 139, St, Dubuque, IA 52001
Qualifying Category: Replacing Units Lost
Rental Applicant Owner In on
Impact on Area Recovery
Frantz Community Investors / Ho Gh Dubuue Buitdin
Name of Developer / LLC
For -Profit X
*Non -Profit €
Frantz
Last Name (Individual Owner or CEO)
485-66-8044
Tax ID Number
319-390-0013
Contact Telephon
tomafrantz-ci.com._
E-mail Address
801 Beverly Rd SW ste aoo
Current Mailing Address 1
Cedar Rapids
City
Coil #
Michael
First Name
319-573-4460
Linn
County
D
MI
Alternate Tolephone #
State
A
52404
Zip Code
if the applicant is a non-profit organization, submit documentation indicating non-profit status.
Please complete all of the following project information:
Total project cost $5,957,246
General Administration funds (Recipient's Use)
(Not to exceed two percent (2%) calculated by taking Project cost + .98 — Project Cost .7 AdinirL)
Number of buildings in projectZ._ Total number of rental units in project_29_ Total number of LMI units in project_15_
Sec ion
Proposed Renta Property To Be Constructed
Please complete all a the following project/property information. For
for each indivi b lidin
2887 & 290 entr Ave
Street Address
Dubuoe
City
IA
52001
State Zip Code
Legal description(s) (if lengthy—attach): _lot 1 of lot 1 & lot 2 of lot 1 of Paragon Sq, City of Dubuque Iowa
Number of rental units for this building 29_
Number of rental units by bedroom size(s)
(Indicate the total number of units for this building by size, then indicate which of those units will be LM I as COBG Disaster Assisted Units - 51%)
Efficiency
3 CDBG [Disaster Assisted Units
1 -Bedroom 8 CDBG Disaster Assisted Units
2 -Bedroom 18 CDBG Disaster Assisted Units
3 -Bedroom CDBG Disaster Assisted Units
4 -Bedroom CDBG Disaster Assisted Units
Number units to be ADA Accessable1_____
Building Type: Describe
Historic Restoration
Building Codes applicable to this project Multi -Family_
Is the proposed Rental Property to be located in a 100 -year flood plain?
(if yes, do you have a LOMA/LOMR)
Ej Yes X No
Is the proposed Rental Property to be located in a locally proposed or designated buy-out area? 0 Yes X No
is this proposed Rental Property an upper story project in an existing downtown? 0 Yes X No
Is this proposed Rental Property a conversion of an existing building into new housing units? X Yes 0 No
Is this proposed Rental Property in -fill in on a previously improved lot? 0 Yes X No
(not new construction in previously undeveloped green space)
Is this project associated with a mixed-use project Including commercial venture(s)? 0 Yes X No
(any commercial costs must be separated from the housing project and not included in the budget or proforma)
a e
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)
Income Targeting
At/below 80%
(assisted units)
Market-Rate/Other
TOTAL
# of Units % of Total
52
14 48
100
29
**PROVIDE ADDITIONAL DOCUMENTATION AS SHOWN ON APP CATION CHECKLIST**
2
Section S&mn u Pa
Disclosures:
w This application serves as the initial point of entry to the Multi -family (Rental) Unit Production — New
Construction Program — Round 6. Additional information and documentation may be required to
determine eligibility.
�
Authorized representatives of the Multi -family (Rental) Unit Production — New Construction Program
Round 8aha(} have the right to inspect the proposed Rental projoct at any time, from the date of
application through completion and to the end of the period of affnrdabi|ity, upon giving due
notice to the ownor 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 6. Use
of data obtained is limited to that necessary for the administration and management of this program by
lowa Economic Development Authority personnel, those under contract with Iowa Economic
Development Authority, and other governmental agencies when authorized by the lowa Economic
Dovelopment Authority or its recipient.
• Assistance shafl be in the form of a forgivable loan
• As a condition of receiving Multi -family (Rental) Unit Production — New Construction — Round 6
assistance, if your project is 12 or more units, you must execute and consent to the recording of a 10-
yemr forgivable (forgiven in full at the end of the 10-ysar compliance period), non -receding loan
documents and the agreement for covenants and restrictions against the assisted property. If your
project is less than 12 un|ho, you must execute and consent to the recording of a 5 -year forgivable
(forgiven in full at the end of the 6 -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 maturity date of the forgivable, non-
roceding loan has been reached, then the entire amourit of assistance shall be due and payable
--```----`~`,
• Any person or entity, who obtains funds through false representation, is guilty of theftand may be
prosecuted and sentenced accordingly.
�
INVe certify that the statements contained in this application are true, accurate, and complete to the best
of my/our knowledge ar'id belief.
Signatures: Eventual owner of record of the Rental Proporty 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 Prograrn — Round 6 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.
Joint Applicant SignatureDate
We certify that we have reviewed this application (worked with the rental applicant on the final details of the proposal,
revising as necessary) and given our approval of this project.
CDB8Disaster Recovery Recipient (Local Governmen-Countyv,Qtym^y) Date
3
Prepared by: Maurice Jones, 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. 252-14
RESOLUTION OF SUPPORT TO THE IOWA ECONOMIC DEVELOPMENT
AUTHORITY, ON BEHALF OF ST. MARY'S CHURCH CORPORATION FOR
SUBMITTAL OF AN APPLICATION FOR A CDBG DISASTER MULTI -FAMILY
UNIT PRODUCTION ROUND 6 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 greater
downtown for mixed use with an emphasis on downtown housing; and
Whereas, the Holy Ghost project located at 1501 Jackson Street will provide
twelve (12) residential development units to the downtown area; seven (7) units will
provide affordable housing opportunities for low and moderate income (LMI)
citizens; 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:
Section 1. The City of Dubuque agrees to support the CDBG Disaster Multi -
Family Unit Production Round 6 Application on behalf of St. Mary's Church
Corporation for the property at 1501 Jackson Street.
Section 2. 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 18th day of Aust, 2014.
Roy D. Buol, Mayor
Atte • .' Kevin S. Firn ` City Clerk
Prepared by: Maurice Jones, 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. 253-14
RESOLUTION OF SUPPORT TO THE IOWA ECONOMIC DEVELOPMENT
AUTHORITY, ON BEHALF OF FRANTZ COMMUNITY INVESTORS FOR
SUBMITTAL OF AN APPLICATION FOR A CDBG DISASTER MULTI -FAMILY
UNIT PRODUCTION ROUND 6 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 greater
downtown for mixed use with an emphasis on downtown housing; and
Whereas, the Holy Ghost project located at 2887-2901 Central Avenue will
provide twenty nine (29) residential development units to the downtown area;
fifteen (15) units will provide affordable housing opportunities for low and
moderate income (LMI) citizens; 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:
Section 1. The City of Dubuque agrees to support the CDBG Disaster Multi -
Family Unit Production Round 6 Application on behalf of Frantz Community
Investors for the property at 2887-2901 Central Avenue.
Section 2. 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 18th day of Augu 2014.
Roy D. Bu•; ", Mayor
Attest:
Keviry/S. Firnstahl, Cit F10..-
rk