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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.