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Downtown Rehabilitation Grant Program Modifications to Guidelines/Application Copyright 2014 City of Dubuque Consent Items # 16. ITEM TITLE: Downtown Rehabilitation Grant Program Modifications SUMMARY: City Manager recommending approval of modifications to the City's Downtown Rehabilitation Incentive Program guidelines and application. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Downtown Rehabilitation Incentive: Program City Manager Memo Modifications-MVM Memo Staff Memo Staff Memo Grant Application Supporting Documentation Grant Guidelines Supporting Documentation THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Downtown Rehabilitation Incentive Program Modifications DATE: April 12, 2016 Economic Development Director Maurice Jones recommends City Council approval of the following modifications to the City's Downtown Rehabilitation Incentive Program guidelines and application: 1. Letters of commitment will include an acceptance date, commencement date, and completion date for the project, after which time the commitment will lapse. 2. Maximum funding for fagade/design/financial consulting will remain at $35,000 in the Greater Downtown and revert from $50,000 to $35,000 in the Washington Neighborhood area. 3. Applications will be accepted on an ongoing basis; however, they will be reviewed monthly by committee. Applications not selected for funding may reapply in subsequent months. 4. The review committee shall consist of at least one representative from the Economic Development Department, the Planning Department, and the Building Services Department. 5. Projects will be reviewed for project feasibility and readiness, as well as impact on the building and neighborhood. To help measure these factors, applications will require that the current condition of the building, a description and rendering of the finished project, and bids for the proposed work be attached. I concur with the recommendation and respectfully request Mayor and City Council approval. 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 2 Dubuque Economic Development Department THE CITY OF 50 West 13th Street AII-AwftlitY Dubuque,Iowa 52001-4864 DUB3 &kE1 I Office(563)589-4393 TTY(563)690-6678 ® http://www.cityofdubuque.org Masterpiece on the Mississippi 200.2012.2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Downtown Rehabilitation Incentive Program Modifications DATE: April 4, 2016 INTRODUCTION This memorandum presents modifications to the City's Downtown Rehabilitation Incentive Program guidelines and application and seeks concurrence from the City Manager and City Council. BACKGROUND The Economic Development Department currently has several incentive programs to promote the rehabilitation of existing buildings in our greater downtown area for the development of rental residential and commercial space. These programs have been highly successful, as evidenced by the 30+ properties that have made use of the loan and grants. Because if its success, our department has reviewed the program guidelines and application to make sure they continue to reflect the intent and best practice of the funding. DISCUSSION The Downtown Rehabilitation Loan Program (DRLP) is a revolving loan fund (providing up to a $300,000 loan) that dates back to the late 1990's. It became particularly popular in 2008, when developers began accessing the program in order to fulfill the existing need for downtown rental housing, compounded by the arrival of IBM. There were so many requests that the funds could not all be disbursed immediately. As such, the letters of commitment to the developers began to promise funds at an approximate future date, some as far forward as 2026. Such a delay in financing made the loan less impactful, and the program was temporarily suspended in November 2012. With no additional funds available for the next 10+ years, we believe it makes sense to remove the information about the program from both the guidelines and application, as they produce expectations that cannot be met, as well as confusion. The Fagade Grant (up to $10,000), Planning & Design Grant (up to $10,000), and Financial Consultant Grant (up to $15,000) are typically combined on projects, although they can be used separately on a case-by-case basis. These three grants have been used on large and small projects in the greater downtown area. Since 2007, these grants (and accompanying Washington Neighborhood program which provides higher funding levels per project), have injected over $525,000 into our downtown for improved fagades. This is a popular program, but our funding is limited. It is critical that our program be transparent, equitable, and transformational. This will allow us to be excellent stewards of our tax payers' dollars, while providing needed funding for small projects that have a big impact on our community. The following changes to our process will provide us better control over our budget and ensure we're providing funds to quality, shovel-ready projects: 1 . Letters of commitment will include an acceptance date, commencement date, and completion date for the project, after which time the commitment will lapse. Ensures projects are shovel-ready when they apply, allowing for better program budgeting and efficient use of staff time to review applications. 2. Maximum funding for fagade/design/financial consulting will remain $35,000 in the Greater Downtown and revert from $50,000 to $35,000 in the Washington Neighborhood area. Simplifies the program and allows for more projects to be funded in the downtown area. 3. Applications will be accepted on an ongoing basis; however, they will be reviewed monthly by committee. Applications not selected for funding may reapply in subsequent months. Allows for better project comparison thus awarding funds to more impactful projects vs. first-come first-served. 4. The review committee shall consist of at least one representative from the Economic Development Department, the Planning Department, and the Building Services Department. Ensures both economic and design/code elements of the project are considered. 5. Projects will be reviewed for project feasibility and readiness, as well as impact on the building and neighborhood. To help measure these factors, applications will require that the current condition of the building, a description and rendering of the finished project, and bids for the proposed work be attached. Ensures better objectivity when reviewing projects each month. Also means applicants are serious and projects are nearing the shovel-ready requirement. RECOMMENDATION/ ACTION STEP Due to the suspension of the DRLP, with no additional funds available in the foreseeable future, I recommend deleting that information from the guidelines and application. I also recommend approving the above modifications to the application, review, and award process for the three downtown rehabilitation grants, as they will improve the program — making it transparent, equitable, and transformational. Dubuque THE CITY OF kNIANd All-America City DUB3 &kE 1 r Masterpiece on the Mississippi 2007.2012.2013 City of Dubuque, Iowa Fagade Grant Program, Financial Consultant Grant Program, and Planning and Design Grant Program, APPLICATION Applications for funding through the City of Dubuque's Fagade Grant Program, Financial Consultant Grant Program, and Planning & Design Grant Program will be accepted by the Economic Development Department, 50 West 13th Street, Dubuque, Iowa(563) 589-4393. Applications will be received on a rolling basis and reviewed monthly by a Review Committee consisting of staff from the Economic Development, Building Services, and Planning Departments with selected projects being submitted to the City Manager for final review and approval. APPLICANT INFORMATION Address of Project: Building Owner: Applicant: Mailing Address: Telephone: Email: Which assistance program(s) is this project seeking? ❑ Fagade Grant Program ❑ Financial Consultant Grant Program ❑ Planning and Design Grant Program Has applicant discussed details of this project with the City of Dubuque Planning Department and been made aware of the City's design review guidelines at http://cityofdubugue.org/l295/Design-Guidelines ? Yes [:1 No ❑ If yes, with whom? _ Construction schedule of project (commencement & completion): Page 1 of 6 A. Current Physical Condition of Building: (If additional space is needed, please attach description as Attachment A. B. Proposed Modification of Building — written: (If additional space is needed, please attach description as Attachment B. C. Proposed Modification of Building — visual: Please attach a detailed drawing/rendering showing dimensions, architectural details, and labels, of the proposed finished project. Please attach as Attachment C. D. Impact Statement: How will the project further the revitalization of downtown? (If additional space is needed, please attach as Attachment D.) Number of current housing units on property: Number of new housing units created from project: Number of jobs currently in building: Number of jobs created after project completed: Square footage of storefront space rehabbed: Rent rate being offered in rehabbed storefront: /SF for yrs. Page 2 of 6 E. Building Ownership: Please include proof of building ownership as Attachment E. You may use the following site as a resource: https://beaconbeta.schneidercorp.com/ F. Building Ownership — organization: If the owner is a for-profit or non-profit organization, is a Resolution adopted by the Board of Directors which authorizes both the project and the application attached with the Minutes of the Meeting when it was adopted? Yes ❑ No ❑ N/A❑ Please attach as Attachment F. G. Applicant's Ownership Interests - other properties: Does applicant own or have ownership interest in other properties in Dubuque? Yes ❑ No ❑ (If yes, please list addresses. If additional space is needed please attach as Attachment G. Do the above properties comply with all applicable City of Dubuque ordinances and regulations, including but not limited to, housing, building, zoning, fire, health and vacant and abandoned building regulations? Yes ❑ No ❑ H. Property Signage: Do existing signs on the property comply with City Zoning regulations and design guidelines? Yes ❑ No ❑ N/A❑ If the above answer is no, or the applicant is proposing new signs, please describe the design materials and colors that will be used on the sign face, how the sign will be displayed, and any lighting proposed. If additional space is needed place attach as Attachment H. Page 3 of 6 I. Leveraged Sources: Will this project be utilizing Federal or State Historic Tax Credits? Yes ❑ No ❑ If yes, with whom? Please list other sources of funding and financing for this project, and whether the sources are already secured. If additional space is needed place attach as Attachment I. J. Bids: Please attach bid(s) for the proposed work as Attachment J. K. Certificate of Insurance: Please attach a certificate of insurance for the individual/company bidding the work, Attachment K. Page 4 of 6 Facade Grant* What are the estimated costs for fagade improvements? How much assistance is the project requesting? What is the construction schedule for fagade improvements? Will the project include repointing or tuck pointing? Yes ❑ No ❑ If yes, a mortar analysis sample may be required. The sample would be a reimbursable expenditure. Financial Consultant Grant* What are the estimated costs for financial consultant services? How much assistance is the project requesting? Planning and Design Grant* What are the estimated costs for planning and design? How much assistance is the project requesting? *Grant Funds will be disbursed upon completion of work, documentation of costs and an inspection of completed project at a rate of $.50 for each $1.00 of costs incurred, up to maximum amount of grant committed. Written requests for payment must be submitted to the Economic Development Department. **Paid invoices and/or cancelled checks will be required to confirm expenditures. Page 5 of 6 List of Exhibits Exhibit A Current Physical Condition (if additional room needed) Exhibit B Proposed Modification of Building (if additional room needed) Exhibit C Detailed Drawing/Rendering Exhibit D Impact Statement (if additional room needed) Exhibit E Proof of Building Ownership Exhibit F Resolution (if applicable) Exhibit G List of Applicant's Other Properties (if applicable) Exhibit H Sign Compliance (if applicable) Exhibit I Leveraged Sources of Funds Exhibit J Bids Exhibit K Certificate of Insurance Page 6 of 6 City of Dubuque, Iowa Fagade Grant Program, Financial Consultant Grant Program, and Planning & Design Grant Program PROGRAM GUIDELINES (2016) The Fagade Grant, Financial Consultant Grant, and Planning & Design Grant Programs are designed to further the goals and objectives of the Greater Downtown Urban Renewal Plan by creating the financial incentives needed to eliminate conditions of blight, encourage revitalization efforts and to retain or create employment opportunities and/or new housing units within the district. This program will address building code deficiencies as part of each approved project. Eligible Applicants: Owners of property within the Greater Downtown Urban Renewal District (map attached). Eligible Activities and Assistance: Fagade Grant Program — A maximum of a ten thousand dollar ($10,000) 1 :1 matching grant is available to provide assistance on labor or material costs for front or rear fagade renovations to restore a building's historic appearance or eliminate inappropriate additions or alterations to improve overall appearance. Financial Consultant Grant Program — A maximum of a fifteen thousand dollar ($15,000) 1 :1 matching grant is available to provide assistance on hiring a financial consultant used to analyze the feasibility of a project. Planning & Design Grant Program — A maximum of a ten thousand dollar ($10,000) 1 :1 matching grant is available to provide assistance on pre-development costs associated with a project. FOR MORE INFORMATION, please contact: City of Dubuque Economic Development Department 50 West 13th Street, Dubuque, Iowa 52001 (563) 589-4393 General Conditions: • Property must be located in Greater Downtown Urban Renewal District (see attached map) and with timely commencement & completion dates identified. • Projects must be the rehabilitation of an existing structure. • Property cannot be a single family home. • All existing code deficiencies within a scope of a project must be corrected and new improvements must comply with all applicable codes and ordinances. • Owner of property must certify that all property in the City of Dubuque, for which the owner has any interest, complies with all applicable City of Dubuque ordinances and regulations, including, but not limited to, housing, building, zoning, fire, health, and vacant and abandoned building regulations. • Exterior alterations are subject to design review and approval. The Historic District Guidelines shall apply to projects located in Historic Preservation Districts. The Downtown Design Guidelines shall apply to all other project locations. Projects which conform to the applicable guidelines may be reviewed and approved by the City Planner. Projects that do not strictly conform to the applicable guidelines will be forwarded to the Historic Preservation Commission (HPC) for consideration. Substantial rehabilitation projects may also be considered by the HPC. The process for review is at the discretion of the City Planner. Guidelines can be viewed and downloaded at http://cityofdubugue.org/1295/Design-Guidelines. • Any signs on the property that do not comply with City zoning regulations and design guidelines must be included in the design review and improved to comply with applicable City Codes. Submittal must include the design materials and colors that will be used on the sign face, how the sign will be displayed, and any lighting proposed. • A detailed rendering/drawing of the proposed project must be included. The plans should include dimensions and architectural details and label materials. Plans prepared by a design professional (e.g. architect or draftsperson) are strongly recommended. Applications without detailed drawings will not be considered complete. • Applicant will not be reimbursed for personal labor costs or labor costs of family members, nor can these costs be counted in the total project costs. • Projects may not receive the maximum amount of each form of assistance more than once. • Deviation from an approved project plan shall disqualify the project from the program. • City funded projects may be required to meet sound proofing, lighting, security, or other standards — as determined by the City of Dubuque following an internal neighborhood impact study — particularly when units are located in mixed-use neighborhoods. • Applications will be reviewed monthly by the Review Committee, consisting of at least one representative from the City's Economic Development, Planning, and Building Services Departments. The Review Committee will score each application and will fund projects that meet the program criteria and are ready to commence within three months. FACADE GRANT INFORMATION This program provides grants in the Greater Downtown Urban Renewal District for front or rear fagade renovation to restore the fagade to its historic appearance or improve the overall appearance. Amount of Grant: 1 :1 matching grant not to exceed ten thousand dollars ($10,000) shall be awarded by the City to qualifying projects based on total eligible project costs. (Example: $8,500 in eligible project costs would receive a $4,250 grant matched by $4,250 in private contribution; $20,000 or greater eligible project costs would receive the maximum $10,000 grant.) Grant Specific Conditions: • Reimbursement is for labor and material costs associated with fagade improvements, including but not limited to, rehabilitating or improving windows, paint, signage, or awnings to enhance overall appearance. • Landscaping or screening with fencing or retaining walls may be a reimbursable expense if a determination is made that property is improved adjacent to public right-of-way. • In order to receive reimbursement for repointing, a mortar analysis sample may be requested for each fagade that will be repointed. The applicant must adhere to the results of that analysis in their rehabilitation work as part of their approved project plan. The City may request verification that the new mortar matches the results of the mortar analysis. • Language from the National Park Service Technical Preservation Services Briefs may be attached as a condition for a building permit if the applicant chooses to perform repointing on the project. • Reimbursable expenditures must be documented. • Grants will be disbursed upon completion of work at a rate of $.50 for each $1 .00 of qualified costs. Approval Process: 1 . Design review by the City Planning Department and/or the Historical Preservation Commission is required for exterior work on the project. 2. Grant applications will be reviewed by City staff Review Committee and approved by the City Manager. 3. Funding will be disbursed upon staff review of documented expenditures and inspection of a completed project. FINANCIAL CONSULTANT GRANT INFORMATION This program provides grants in the Greater Downtown Urban Renewal District for hiring a financial consultant to analyze the feasibility of projects. Amount of Grant: 1 :1 matching grant not to exceed fifteen thousand dollars ($15,000) shall be awarded to qualifying projects based on total eligible project costs. (Example: $8,500 in eligible project costs would receive a $4,250 grant matched by $4,250 in private contribution; $30,000 or greater eligible costs would receive the maximum $15,000 grant.) Grant Specific Conditions: • Reimbursement is for fees associated with hiring a professional financial consultant. • Reimbursable expenditures must be documented. • This grant shall not exceed ten percent (10%) of total project costs. • The rehabilitation project must be completed for the Financial Consultant Grant to be funded. • Grants will be disbursed upon completion of work at a rate of $.50 for each $1 .00 of qualified costs. Approval Process: 1 . Design review by the City Planning Department and/or the Historical Preservation Commission is required for exterior work on the project. 2. Grant applications will be reviewed by City staff Review Committee and approved by the City Manager. 3. Funding will be disbursed upon staff review of documented expenditures and inspection of a completed project. PLANNING & DESIGN GRANT INFORMATION This program provides grants in the Greater Downtown Urban Renewal District for hiring architects, engineers or other professional services used prior to construction. Amount of Grant: 1 :1 matching grant not to exceed ten thousand dollars ($10,000) be awarded by the City to qualifying projects to offset the actual pre-development costs. (Example: $8,500 in eligible project costs would receive $4,250 grant matched by $4,250 in private contribution; $20,000 or greater eligible project costs would receive the maximum $10,000 grant.) Grant Specific Conditions: • Reimbursement is for architectural and engineering fees, feasibility studies, environmental assessments or other related soft costs. • Reimbursable expenditures must be documented. • Owner/ developer fees are not permitted as reimbursable expenditures. • The grant shall not exceed ten percent (10%) of total project costs. • Grants will be disbursed upon completion of the project at a rate of $0.50 for each $1 .00 of qualified costs. Approval Process: 1 . Design review by the City Planning Department and/or the Historical Preservation Commission is required for exterior work on the project. 2. Grant applications will be reviewed by City staff Review Committee and approved by the City Manager. 3. Funding will be disbursed upon staff review of documented expenditures and inspection of a completed project. 2015.1 Greater Downtown Urban Renewal District Attachment A: Subarea Map 1 1 i11�1111■■;IIG�i� - I11111111111111�■I■ 1111■■.111111 � 1111■ 1111111 11111 11■Ih�, �� __ _�� 11111 � 111■��� -�r� RIM 1 h:\E<onomi<Developmem\Urban Renewal\ Grernerpowmo—pdf op:A��ochmemA. eo�ed by 201329, -04-29, Il■■ / upd.,.o�ed 2014 04 29 Almond St Subarea North Kerper Subarea Bluff Street Subarea Old Main Subarea -J Cable Car Subarea Quebecor Economic Development Chaplain Schmitt Subarea i South Bluff Subarea U East 7th Street Subarea South Main Subarea Harrison Street Subarea South Port Subarea Holy Ghost Subarea Town Clock Subarea Ice Harbor Subarea A Town Clock Expansion Subarea Ice Harbor Subarea B i Upper Main Subarea Ice Harbor Subarea C i Warehouse Subarea Industrial 16th Subarea i Washington Street Subarea Kerper Boulevard Subarea