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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 band AI -America City r 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 klitil 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