Adams Co. Economic Devel Gr AppMEMORANDUM
March 12, 2002
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Preapplication for Grant From Economic Development Administration
In light of the development in the Port of Dubuque area, the City and the Adams
Company have been discussing relocation of the company. Economic Development
Director Bill Baum is recommending approval of a Preapplication for a $2 million grant
from the Economic Development Administration for the acquisition and relocation of the
Adams Company, a manufacturing company currently located at 100 East Fourth Street
in the Port of Dubuque.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
CC:
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William J. Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 12, 2002
TO: Michael Van Milligen, City Manager
FROM: William J. Baum, Economic Development Director
SUBJECT: Preapplication for Grant From Economic Development Administration
INTRODUCTION
The attached resolution provides for the approval of a Preapplication for a $2 million
grant from the Economic Development Administration (EDA) for the acquisition and
relocation of the Adams Company, a manufacturing company currently located at 100
East Fourth Street in the Port of Dubuque.
DISCUSSION
The City Council on Mamh 4, 2001 adopted a Master Plan for the Port of Dubuque. The
Master Plan for the aroa provides for the redevelopment of the aroa into a new "urban
neighborhood, with committed national tourist attractions anchoring other commercial,
office, and housing developments. One of the challenges facing the City is the
acquisition and assembling of land to accomplish the redevelopment. Particularly, the
acquisition and relocation of the Adams Company from the Port of Dubuque will require
resources currently not budgeted.
In seeking Federal funding to assist the City, we have met with Bob Cecil, the Iowa
Economic Development Representative for EDA. Mr. Cecil's review of the America's
River Project, including the employment projections, private investment committed to
redevelopment, and a description of our need for assistance, concluded with a
recommendation that the City submit a Pro-application to EDA for $2 million.
We are proposing to apply in partnership with the Adams Company and the Greater
Dubuque Development Corporation. If successful, the Adams Company will be
relocated to the existing GDDC "Spec building" at the Dubuque Industrial Center West.
The total estimated cost of the acquisition, land exchange, and relocation is $3.5 million.
The EDA grant of $2 million would provide 57% of the estimated amount needed to
relocate the company.
RECOMMENDATION
I recommend the City Council review, discuss, and approve the Preapplication for $2
Million to be submitted to the Economic Development Administration.
ACTION STEP
The requested action is for the City Council to adopt the attached resolution approving
the Preapplication, and authorizing the Mayor to sign the Preapplication.
RESOLUTION NO. 157-02
A RESOLUTION AUTHORIZING THE FILING OF A PREAPPLICATION
TO THE ECONOMIC DEVELOPMENT ADMINISTRATION
Whereas, the City Council of Dubuque has approved a Master Plan for the Port
of Dubuque; and
Whereas, the City Council of Dubuque, Iowa is committed to the acquisition and
assembly of properties in the Port of Dubuque to implement the Master Plan; and
Whereas, the Economic Development Administration (EDA) has funding
available to assist the City of Dubuque in the redevelopment of the Port of Dubuque;
and
Whereas, a Preapplication has been prepared for EDA funding;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of the Preapplication for $2 million of EDA assistance is
hereby approved.
Section 2. That the Mayor is hereby authorized to execute, and the City Manager is
hereby directed to submit said Preapplication to the Economic Development Administration
together with other attachments as may be required.
Passed, approved, and adopted this 18th day of March, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
F:\USERS\WBaurn\Resolut[on approving EDA pre app.doc
ECONOMIC DEVELOPMENT ADMINISTRATION
The preapplieation is used by the Economic
Development Admiulstmtion (EDA) to evaluate
proposals for Federal assistance under EDA
programs. If a proposal meets statutory,
regulatory, and competitive selection criteria,
the proponent may be havited to submit an
application. Please visit our Web site at
www. doc. gov/eda. The site contains infor-
mation on EDA programs and requirements,
including funding priorities published in the
current Federal Regismr Notice of Funding
Availability.
Please answer all questions completely and
accurately. Be concise, attaching a narrative
statement that responds to all questions in the
order listed. (The preapplicafion narrative need
not exceed four pages.) An original (including
all forms with original signatures) and two
copies should be submitted to the Economic
Development Representative (EDR) or regional
office contact for your area. as shown in the
Federal Rec, ister Notice.
Proponents are encouraged to contact their
EDA repmsantative prior to completing the
preapplicafion. EDA staff will provide advice
and assistance m identifying and resolving
critical issues.
An application is a serious undemking which
involves significant staff time and perhaps
coordination with other local, state and Federal
agencies. For construction projects this may
involve engineering and regal services which
may only be eligible for reimbursement with
grant funds if authorized by the Regional Office
prior to submission of the final application.
William Baum, Economic Developmer
~DAConmcO Director
50 West 13th St. City Hall
(Address)
Dubuque, Iowa 52001-4864
563-589-4393
(Tel~honO
Economic Development Administratibn ~
APPLICATION FOR
FEDERAL ASSISTANCE
1. TYPE OF SUBMISSION: [] Construction
A plication Preepplicafion
~-J~ Construction
[] Non-Construction [] Non-Construction
5. APPLICANT INFORMATION
Figure 1:SF~424
OMB Approval No. 0348-0043
2. DATE SUBMrrTED
2/1-8/02
State Application Identifier
Federal Ident tier
I. DATE RECEIVED BY STATE
~/h
4. DATE RECEIVED BY FEDERAL AGENCY
City of Dubuaue. Iowa
50 W. 13th Street
Dubuque, Iowa 52001-4864
6. EMPLOYER IDENTIFICATION NUMBER (EIN):
Organizational Unit:
this application (give area code)
William J. Baum
563-589-4393
7. TYPE OF APPLICAN'r: enter sppropdate letter in box,
8. TYPE OF APPLICATION:
[] New [] Continuation [] Revision
If Revision. enter eppropdate letter(s) in box(es) [] []
A. Increase Award B. Decrease Awa~'d C, Increase Duration
D. D~crease Duration Other(specify):
A_ State
B. County
C. Municipal
D. Township
E. Interstate
F. thtermunicipal
G. Special District
H, Independent Schoo Dist. ~
I. State Controlled Institution et Hig}3er Learning
J. Pdvate University
K. indian Tribe
L thffrvidual
M. Profit Organization
N. Other (Specify)
10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER:
'n'n.E: Grants for Public Works & ED
12. AREAS AFFECTED BY PROJECT (CNes, Counties, States, etc.):
Dubuque, Iowa
9. NAME OF FEDERAL AGENCY:
Economic Development AdministratJ
11, DESCRI~VE T~LE OF APPUCANT'S PROJECT:
Redevelopment of the Port of
Dubuque - America's River.
Acquisition of property for
reuse and development.
13. PROPOSED PROJECT 114. CONGRESSIONAL DISTRICTS OF: Iowa
Start Date ] Ending Datet a. Applicant b. Project
10/1/0:~ 10/1/0 2ha 2nd
15. ESTIMATED FUNDING:
a. Federal
b. Applicant
c. State
d. Local
$
$
2r000e000
1,500e000
00
e. Other
f. Program Income $ m
· TOTAL $ ~o
O0
16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE
ORDER 12372 PROCESS?
a. YES. THIS PREAPPLICATION/APPLICATION WAS MADE
AVAILABLE TO THE STATE EXECUTIVE ORDER 12372
PROCESS FOR REVIEW ON:
DATE 2/18/02
b. No. [] PROGRAM IS NOT COVERED BY E. O. 12372
[] OR PROGRAM HAS NOT BEEN SELECTED BY STATE
FOR REVIEW
3,500,000
18. TO THE BEST OF MY KNOWLEDGE AND BEUEF, ALL DATA IN THIS APPLICATION/PREAPPUCATION ARE TRUE AND CORRECT, THE
DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WiTH THE
A'FFACHED ASSURANCES IF THE ASSISTANCE IS AWARDED,
~. Type Name of Authorized Representative I b. Title c. Telephone Number
Terrance M. Duggan I Mayor 563-589-4110
17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
[] Yes If "Yes, ' a~ach an explanation. [] NO
Signature of Authodzed Represent~ive
e. Date Signec
2/18/02
Economic Development Adminis~raHon
Standard Form 424 [Rev. 7-g7)
Prescribed by OMB Circular A-102
· Briefly describe the expected impacts from the project on the community and how unemployed, underemployed, dis-
located or Iow income workers will benefit from the project.
· Include estimates for job creation/retention and private sector investment expected to result from this project.
· Identify other competitive selection criteria addressed by the project.
Idanfify employers who will benefit from the project:
Company Products Private Sector Committed or
and Services Jobs Saved New Jobs Investment $ Interest Only
Adams Company Gears & Shafts 60 0 0 0
0 committ~
Platinum Holdi]~gs Hotel/Wate] Park 168 22,000,0)0
A~uarium & Museum 0 62 36,000,0~°mmitt~_
River Discover' ~en~er .
0 43 27,000,0110
City of Dubuqu~ Education/Conference Cfr committ{
conditi~
Durrant Group Architectural Services 5~500f001
t
lal
Total 273
· If the proponent and/or employers identified above have been the subject of any tmresolved issues or negative de~er-
mlnations, arising from civil rights compliance reviews, complaints, lawsuits or other allegations of discrimination on
the basis of race, color, national origin, sex, disability or age within the past two years, briefly describe the issue(s)
and status thereof. N / A
· Does the applicant and any identified "Other Pm'ties" understand and agree To the EDA civil rights requirements for
signed assurances, employment data, and any other information which may be needed to determine compliance?
Yes Cl No [] Applicant
Yes Q No [] "Other Parties"
51 Not Applicable rn No "Other Parties" Identified
Economic Development.4dminiatration
Construction Project Budget Estimate Non-Construction Project Budget Estimate
Administrative Expenses $ Personnel $
Land, Structures, ROW, Easements $ Fringe Benefits $
2t000r001
Relecafi°n & Incidea~al C°sts t° Acquisiti°n $500t000 Travel $
.AJE Fees & Inspection $ Equipment $
Site Work $ Supplies $
Constmctien and Demolition $1 ~ 000 t 00( Contractual $
Equipment $ Other $
Contingencies $ Total Direct Charges $
Indirect Charges $
TotalProject Cost $3 t 500 ~.OOC TotalProject Cost $
· Provide information on the sources and timing of all funding commitments.
Economic Development Administration
Exhibit A
AREA ELIGIBILITY FOR SECTION 201 AND 209 GRANTS
~ye aaneaaments ey~ E¢onomm Developm6n~3,~im~4fi.~tton~Reform,.~'4~PWEDA~ ~
1. Id~ ~e project ~ea Dubuque County ~ Iowa ~d check ~1 ~at apply a below:
Unemployment: The area has an unemployment rote that is, for the most recent 24-month period for winch data are
available, at least one percent greater than the national average unemployment rote. For example, if the national aver-
age unemployment rate is 6 percent, an area is eligible under tiffs provision ifil has an unemployment rote of 7 percent.
Per capita income: The area has a per capita income that is, for the mosl recent period available, 80 percent or less
of the national average per capita income.
Special need: The area bas expefianced or is about m experience, as determined by EDA, a special need arising
froin' actual or threatened severe unamployment or economic adjnsmaent problems resulting from severe short-term
er long-term changes in economic conditions, for example:
substantial out-migration or population loss;
underemployment, that is, employment of workers ar tess than full time or at less skilled tasks than their
rralning or abilities permit;
military base closure or realignment, defense contractor reductions-in-force, or Deparrmem of Energy
defense related funding reductions;
natural or other major disasters or emergencies;
extraordinary depletion of nataral resources;
closure or restructuring of industrial firms, essential to area economies; or
destructive impacts of foreign trade; and
other
2. Source of data provided for area eligibility determination:
The most recent Federal data for the area in winch the project is located is attached;
Data available through the State government for the area in winch the project is located is attached; or
Other data to substantiate eligibility based on special need is attached.
3. The project area is other than one defined by political jurisdiction: provide a description of the project area and
documentation to show: (a) that the proposed project area is of sufficienl size appropriate for the project, end Co) that
project boundaries for area eligibility are consistent with the anticipated project benefits for that area.
Project area. description and documentation attached.
Not applicable
4. Substantial Direct Benefit: If thc project is located in a non-distressed area of an EDA-designated Economic
Development District, provide documentation to show that the project will be of substantial direct benefit to an area
that meets at least one of the criteria set forth in Item 1 above. (A project provides substantial direct benefit if it provides
si~nificant employment opporttmifies for unemployed, underemployed or low income residents).
[3 Documentation attached.
[3 Not applicable
Economic Development Administration
· Briefly describe plans for property management.
· Will the facilities funded by EDA be owned, operated and/or maintained by an entity other than the proponent?
If yes, identify. No
· Will the real property to be improved, or the facilities fimded, by EDA be mortgaged or used as collateral for any financ-
ing and/~risanyrea~pr~penyt~beusedf~rt~xispr~ject~urrent~ym~rtgaged~rbeingusedf~rc~llatera~? Ifyes, explain.
Ilo
· If the facilities fimded by EDA will inchide acquisition, conslraction, or improvemeat of a building or acquisition or improve-
ment of significant items of tangible personal property, can the proponent provide a security interest to EDA? [f no, explain.
· Give a brief physical description of the project site noting topography, vegetation, water bodies, and location and condi-
tion of any manmade structures or buildings.
If yes to any question below, briefly explain.
1. Will the project be located in or adjacent to a floodplain or weflend area?
[] Yes ~ No
[] Not Applicable
2. Wlil the project be located in or adjacent to an area with known hazardous or toxic contamination?
t21 Yes RI No I3 Not Applicable
3. W'fll there be any toxic or hazardous waste, or asbestos associated with this project or employers benefitting f~om
this projecff
[] Yes ~ No [2 Not Applicable
4. Will the project impact any archeologicaI sites, buildings, or structures older than 50 years, or any p[operties
listed on, or eligible for the National Register of Historic Places?
[] Yes ~ No [3 Not Applicable
5. Will this project result in any other adverse environmental impacts which would affect endangered or threatened
spectes, scenic rivers, or other sensitive ecologacal habitats?
[] Yes ~1 No [] Not Applicabte
6. Has an environmental impact statement or other similar analysis been completed for this proposed project or for other
activities in the area of this proposed project?
[] Yes ~l No [] Not Applicable
Economic Development Adminislraffon
Exhibit B
EDA Grant Rate Determination
~1 Pre, application Extn'bit Q Application Exhibit
~ .ill ~e exhibit, refer t~ th~ th:~blic Worlcs and Economtc Development Act o~ 19~5, as amendt/d, including fl~: ~:~el/e~vi~
s'~; by, tlle Ec~nomi~ ~ex/e~opment g~ni~tration Ref0ma Act0f 1998, (PWrEDA). EDA grants ~ay n6~ e~eed ~p
~eLPre~ppl~ca~pn, ~or ApplicglsOm :..A~:.o~{es¢.~., Cat ~¢ tq. 79u~ project ~ ~romd~ ad&~0~fil ~:~orm~a ~fien ~.~a~st~dk,3a:;
t. For Public Works and Economic Adjustment projects under Sections 201 and 209, see criteria for maximum
grant rares provided at 13 CFR 301.4 and shown on the back of this form. Enter the provision and maximum grant rate
that apply to this project below:
~ The project meets ctiteria at l3 CFR 301.4(b~ ( ] for a maximum grant mte of 50 (%)
Additional information to justify grant rote is attached (if requested by EDA).
Additional information to justify supplemental grant into criteria at 13 CFR 301.4(e) is attached.
2. For projects located in designated Economic Development Districts, additional Federal grant assistance not m
exceed 10 percent of eligible project costs is requested as provide under 13 CFR 301.4 Id):
Yes. Attach letter from the Economic Development District Director documenting that:
· The project is located in a designated Economic Development Dislrict;
· The applicant is actively participating in the economic development activities &the District;
· The project is consistent with the sWategy of the Dislrict;
· The non-Federal share isnot tess than 20 pemant;
· The project is not a Section 207 Univemity Center, and it is not a planning project under 13 CFR 306
· The District organization is not itself the sole project applicant; and
· The co-applicant with the District is actively participating in economic development activities of the Distriel
and the project is otherwise aligible for such incentive.
[] No. Additional funding is not requested under this provision.
3. For Planning and Technical Assistance projects under Sections 203 and 207, attach a narrative to justify Federal
funding that ~xceeds 50 percent of eligible project costs as specified below. The EDR or EDA Regional Office can pro-
vide additional guidance for completing this section. (See 13 CFR 301.4.)
Attach narrative for Economic Development District and other Section 203 Planning grants documenting that feder-
al share requirements at 13 CFR 306.3Co) have been met to justify increases up to and including a maximum Federal
share of 75 pement (maximum gmat rate).
Attach narrative for Section 207 Urdversity Center grants documenting that Federal share requirements at 13 CFR
307.7(c~ have been met to justify increases up to and including a maximum Federal share of 75 pement [maxunum
grant rote).
[] Attach narrative for Section 207 Local Technical Assistance documenting that Federal share requirements at 13 CFR
307.3(cl have been met to justify mereases up to and including a maximum Federal share of i00 percent [maximum
grant rate).
Economic Development Administration
REDEVELOPMENT OF PORT OF DUBUQUE
PROJECT IMPACT
Background and Overall Goals
1. A map of the City of Dubuque's "Port of Dubuque" is attached. This area is also known as the "Ice
Harbor", "4th Street Peninsula" and "South Ice Harbor" areas.
2. Itistorical context: The City of Dubuque, Iowa (2000 pop. 57,686), is the county seat of Dubuque
County, located in NE Iowa, on the Mississippi River. The City was chartered 1841. The oldest City in
the state, it was named for Julian Dubuque, who had settled nearby c.1788. Dubuque developed first as a
mining town, then as a lanabering and milling center. The City developed into a trade, industrial, cultural,
and rail center and a river port for an agricultural mad dairying area. Industries through the years have
made food (Dubuque Packing Company), beer (Star Brewery), metal products (A.Y. McDonald),
chemicals, and machinery (John Deere). High tech industries such as Cigna, Cottingham & Butler,
McKesson HBOC, Eagle Point Software, McGraw-Hill, Quebecor, and Cartegraph are experiencing
growth in the community.
The City is the home of the University of Dubuque, Clarke College, and Loras College.
Redevelopment Area: PORT OF DUBUQUE: 4TM STREET PENINSULA AND SOUTH ICE HARBOR
The City's riverfront area, called the 4th Street Peninsula and South Ice Harbor Area (Port of Dubuque),
has a long history as a home for manufacturing and industrial use dating back to the 1800's. The pattern
of industrial use, while declining, continues to the present day on portions of the Port of Dubuque. The
site also contains existing tourist attractions, including the Riverfront Museum, Diamond Jo Casino,
historic Shot Tower and associated surface parking. As a result of a major commitment of local funds and
a series of grants from the State of Iowa, America's River, the redevelopment of the Port of Dubuque is
underway, at an estimated total cost of $180 million. The City has received commitmeuts and is moving
ahead with an education and conference center. Private sector commitments have been secured for the
construction of new hotel and indoor waterpark, the Mississippi River Discovery Center, (museum,
aquarium and wetlands), and the Nationai Rivers Hall of Fame. Additionally, the City has secured
funding and is proceeding with the construction of infrastructure to support the redevelopment, and is in
the process of contracting for the "River Walk", along the Mississippi River. A copy of the America's
River brochure is attached identifying these icons.
3. Ultimate target or goal: The City's ultimate goal is to redevelop the entire Port of Dubuque according
to the Master Plan approved by the City council on March 4, 2001, with the committed national tourist
attractions anchoring other entertainment developments. A copy of the Master Plan is attached.
The redevelopment of the Port of Dubuque will create 273 new jobs. These new jobs will include
employment by the hotel and water park developer, (168) Platinum Holdings, jobs created by the same
company to operate the Education and Conference Center (62), and jobs created by the Dubuque
Historical Society, the owner operator of the proposed Mississippi Discovery Center. These jobs will be
made available to the unemployed, underemployed, dislocated or low-income workers.
4. EDA Project Assistance. The City has been successful to date in acquiring and assembling properties
for redevelopment. The City has purchased property to be used for the Education/Conference Center, the
Hotel/Water Park, and the Riverwalk. The City has also purchased the old Star Brewery along the
River, and one adjacent parcel. Discussions are ongoing with two logging companies in the area. The
City has spent over $9 million on property acquisition to date.
The major challenge of the City in the redevelopment of the Port of Dubuque is the acquisition and
relocation of an existing company, the Adams Company. The Adams Company, located at 100 East
Fourth Street employs 60 people in the manufacturing of custom gears and shafts for a wide range of
industries. Acquisition and relocation of the Company is necessary for the redevelopment of the area, yet
the cost of the existing facility and the moving of the Company's precision production machinery is a
very expensive project.
However, the Greater Dubuque Development Corporation, the City's non-profit development corporation,
has constructed a new industrial building in the City that would, with some modifications fit the
Company's needs. Therefore, the City is requesting EDA assistance for the acquisition and exchange of
properties, renovation of the structure to be provided to the company, and relocation of the company to
the new facility. The total estimated cost is $3.5 million. EDA assistmace of $2 million is requested.