Marquette Hall Urban Revitalization Area Designation Copyright 2014
City of Dubuque Action Items # 4.
ITEM TITLE: Marquette Hall - Urban Revitalization Area Designation
SUMMARY: City Manager recommending approval of a resolution to
establish Marquette Hall as a property that meets the
requirements for designation as an Urban Revitalization
Area.
RESOLUTION Finding that the designation of the
Marquette Hall Urban Revitalization Plan is necessary in the
interest of public health, safety, and welfare of the residents
of the City of Dubuque, Iowa
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Marquette Hall Urban Rexdalizaiton Area-MVM Memo City Manager Memo
Staff Memo Staff Memo
Figure 2, Map Supporting Documentation
Petition for District Supporting Documentation
5S Exhibit Supporting Documentation
Resouton Resolutions
Meeting Notice Supporting Documentation
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Petition for Designation of Marquette Hall Urban Revitalization Area
District from Cohen-Esrey Affordable Partners
DATE: October 31, 2016
Housing and Community Development Director Alvin Nash recommends City support of
the Marquette Hall project. This project is consistent with what was approved in 2015,
but did not receive State Historic Tax Credits.
Consistent with last years' application approved by the City Council, the Developers
propose to redevelop the former Sacred Heart Elementary School, located at 2222
Queen Street, into 28 historic and affordable senior apartments.
Cohen-Esrey Affordable Partners development will preserve and restore the historic
Marquette Hall, built in 1915. The restored structure will provide affordable housing for
seniors in the North End Neighborhood of Dubuque. The project utilizes a number of
funding sources for redevelopment including private funding, State and Federal Historic
Tax Credits, Low Income Housing Tax Credits, and requests support from the City of
Dubuque through the Urban Revitalization Tax Exemption.
This assistance is very important to the success of the project. The application for state
tax credits is competitive. A developer receives points for city financial assistance, with
maximum points provided for assistance equaling 4% of project costs.
Cohen-Esrey held an information session at the North End Neighborhood Association
Meeting to inform residents and obtain public input on the proposed redevelopment of
the building.
The property value, based upon 2015 Beacon data, is $39,560 for land and $892,380
for dwelling for a total taxable value of $931,940. It is estimated after improvements the
assessed value for taxation will be $624,414 and the yearly taxes will be $17,983. The
abatement of $17,983 will be in effect for 10 years for an estimated total of$179,830.
After the abatement period expires the property will be taxed based on the assessed
value for taxation as determined by the assessor.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen'
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing & Community Development Department Director
2
THE CITY OF
Dubuque
All-America City
DUB 1 r
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
DATE: October 31, 2016
RE: Petition for Designation of Marquette Hall Urban Revitalization Area
District from Cohen-Esrey Affordable Partners
Introduction
This memorandum presents for City Council a petition for Urban Revitalization Area
Designation from Cohen-Esrey Affordable Partners (Developers). The memorandum
recommends the City Council review and approve the attached resolution to establish
Marquette Hall as a property that meets the requirements for designation as required by
Chapter 404 of the Iowa Code.
Background
Urban Revitalization Chapter 404 of the Iowa Code (Urban Revitalization Act)
authorizes cities to designate areas as urban revitalization areas. Improvements to
qualified real estate within these designated areas may receive a total or partial
exemption from property taxes for a specified number of years. The exemptions are
intended to stimulate private investment by reducing tax increases that usually
accompany property improvements. This additional private investment provides a
long-term increase or stabilization in the area's tax base, enhances the visibility of
revitalization areas and/or supports important city objectives such as historic
preservation, economic development and affordable housing development.
In order to implement the provisions of Chapter 404, the City determine the area is
eligible for exemption, prepare a revitalization plan for each designated area, and hold
at least one public hearing after proper notice. The law mandates specific criteria and
procedures must be followed.
Discussion
The Developers propose to redevelop the former Sacred Heart Elementary School,
located at 2222 Queen Street, into 28 historic and affordable senior apartments.
Cohen-Esrey Affordable Partners development will preserve and restore the historic
Marquette Hall, built in 1915. The restored structure will provide affordable housing for
seniors in the North End Neighborhood of Dubuque. The project utilizes a number of
funding sources for redevelopment including private funding, State and Federal
Historic Tax Credits, Low Income Housing Tax Credits, and requests support from the
City of Dubuque through the Urban Revitalization Tax Exemption.
The area is established under 404.1(3) and is defined as an area in which there is a
predominance of buildings or improvements which by reason of age, history,
architecture or significance should be preserved or restored to productive use. The
basis for an exemption under 404.3(4) permits a one hundred percent exemption from
taxation on the actual value added by improvements for qualified real estate assessed
as residential property or assessed as commercial property, for a period of ten years.
Cohen-Esrey Affordable Partners has agreed to this exemption schedule.
This assistance is very important to the success of the project. The application for
state tax credits is competitive. A developer receives points for city financial
assistance, with maximum points provided for assistance equaling 4% of project costs.
Cohen-Esrey held an information session at the North End Neighborhood Association
Meeting to inform residents and obtain public input on the proposed redevelopment of
the building. Attendees at the meeting asked about the amenities offered, amount of
rent charged, tenant screening, and need for the project.
The City of Dubuque Consolidated Plan identifies a need for housing for elderly
populations, homeless, and persons with disabilities. These populations often have
limited income and housing choices and will likely benefit from the additional affordable
housing options. The Consolidated Plan is a five-year plan for the use of Community
Development Block Grant funds in the community. The plan examines housing needs for
low and moderate income populations, earning up to 80% of area median income. The
City Consolidated Plan, updated for Fiscal Years 2016-2020, identified housing cost
burden as the primary housing problem faced by low and moderate income renters in
Dubuque. The ACS five year estimates for Selected Housing Characteristics provides
information on the number of households experiencing cost burden. Economists call a
household "cost burden" when housing costs exceed 30% of the household income. 2014
ACS estimates show 52% of renter households are cost burdened, compared with 21%
owner occupied with a mortgage (Figure 1).
+ions r g Cost 6urdnx
Dubuque, V,
Rae Yeer ACS Estimates
as, a-
s' 3z2 a=_
With over half of the renters in Dubuque experiencing cost burden the addition of
affordable, senior rental units will provide opportunity for seniors to live in housing they
can afford.
The renovation of Marquette Hall will allow for adaptive reuse of a historic structure,
currently vacant The location of the project (See Figure 2, attached map) in the North
End of Dubuque is an area rich in history. Due to the historic nature of the housing stock,
few of the historic buildings downtown are ADA accessible. Marquette Hall will be fully
accessible to persons with a disability and will assist to affirmatively HaTerfair housing by
offering more housing choices for seniors. The project location is outside of the area of
concentrated poverty, but still within a neighborhood where many low and moderate
income residents, including seniors reside. This will allow residents to take advantage of
quality, affordable and accessible senior housing options and is consistent with the City's
goals to de concentrate poverty as identified in the Analysis of Impediments. The
Analysis of Impediments examines the barriers to fair housing and identifies strategies to
eliminate these barriers.
Budgetarylmpact
The property value, based upon 2015 Beacon data, is$39 560 for land and $892380
for dwelling for a total taxable value of$931 940. Itis estimated atter improvements
the assessed value fortaxation will be $624,414 and the yearly taxes will be $1],983.
The abatement of$1],983 will be in effect for 10 years for an estimated total of
$1]9,830. Afferthe abatement period expires the property will be taxed based on the
assessed value for taxation as determined by the assessor.
Recommendation
I recommend that the City Council approve the attached resolution supporting the
designation of the Marquette Hall Urban Revitalization District and authorizing staff to
workwith the City Assessor to complete Exhibitform 5S.
Action Requested
The Action Step is forthe Qty Council to adopt the attached resolution and authorize
staff to work the City Assessor to complete Exhibit 5S prior to show local support for the
development.
Prepared by: Erica Haugen, Community Development Specialist
cc. Maurice Jones
Laura Carstens
F:\USERS\CDBG\Urban Revite\Petitions for Districts\Marquette Hall 2016.2017\2017\Memo_to_Council for
petition designation.docx
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COHEN-ESREY
AFFORDABLE PAWFNERS,LLC
Petition tothe City of Dubuque for Designation of
2222 Queen Street to becomean URBAN REVITALIZATION
AREA
Petition submitted by.
Cohen-Esrey Affordable Partners
October 14, 2016
Overview
Cohen-Esrey Affordable Partners(developers)has proposed to redevelop the former Sacred Heart Elementary School,2222 Queen
Street, into 28 historic and affordable apartments.The housing will be called Marquette Hall. This processwill include getting the
property designated on the National Registry of Historic Places(a Part I has been completed).
Several funding sources will beutilized to finance the project including private funding,Stateand Federal HistoricTax Credits,Low
Income Housing Tax Credits(9%),as well a support from the City of Dubuque through itswillingness to utilize the state tool called
the Urban Revitalization Tax Exemption(URTE)for a ten year period, and other city funding sources. The developers have
worked closelywith the Sacred Heart Parish aswell as the North End community to ensure a quality housing product for the
residences of the North End Neighborhood.
1. Eligibility of the Proposed Designation: The Marquette Hall development, at 2222 Queen Street, qualifies for an
Urban Revitalization Area for the following reasons(language is quoted from Section 404.1 of the Iowa Code) Itis
in
• "3.An area in which there is a predominance of buildings or improvements which by reason of age, history,
architecture or significance should be preserved or restored to productive use. "
• "5.An area designated as appropriate for public improvements related to housing and residential development,or
construction of housing andresidential development, including single or multifamily housing"
2. Legal Description:The old elementary school property is in the City of Dubuque Lot#'s 31, 32, 33, 34 Sanford
Sub.
3. Valuation of Property:Currently the property is owned by Holy Spirit Parish. As a non-profit organization, it is tax
exempt. The assessed valuefor 2016 is $39,560 for the land and $892,380 for the building,for a total of
$931,940. Dubuque CityAssessor,Rick Engelken,has done an analysis of the property after reviewing the
development plans as well as the future pro-forma of the Section 42 property. His analysis(see attached)states that
the property will beassessed at$624,414.00 and that yearly taxes will be $17,983.00.
4. Property Ownership:Holy Spirit Parish,2115 Windsor Avenue,Dubuque,IA.52001 is thecurrent owner of the
property. Holy Spirit Parish has entered into a Purchase and Sales Agreement with Cohen-Esrey Affordable Partners
for the saleof the property pending the approval of the state tax credits.
6. Zoning Class if icat ion: I n 2015, the property was rezoned OR/Office and Residential(frcmR-2A) inorder tofacilitate the
building of the newsenior apartments.Final rezoning action took place on December 21, 2015aitheDubuque City
Council.
G. Applicabi I ity of Proposed Designation: This petition to designate 2222 Queen Street as an Urban Revitalization Area
applies to the entire building,which is 33,390 square feet and the adjacent parking lot.They include City of Dubuque Lot
#s31,32,33,34 Sanford Sub. (An October 22,2013 plotted zoning map with aerial is attached). The building is currently
vacant and wiII undergo an adaptive reuse rehabilitation into apartments.
7. Relocation: There are currently no residents or offices that occupy 2222 Queen Street and no relocation will be
required.
8. Proposed Improvements:Preliminary site plans,which include the layout of the individual senior
apartments, are attached.
9. Anticipated Impact Improvements:In addition to preserving and restoring an historic gem,Marquette
Hall(the original name),which was built in 1915,Wll help revitalizethe North End Neighborhood as seniors move
from theirsingle-family homes to Marquette Hall andthe newowners ofthe single-family homes purchase and
rehab those existing homes.
10. Funding Sources: Funding sourcesfortheredevelopmentwillincludeprivatefunding, StateandFederal
Historic Tax Credits,Low Income Housing Tax Credits(9%),as well as support from the City of Dubuque
throughits willingnesstoutilize the Urban Revitalization Tax Exemption (URTE)for a ten-year period.
11. Economic Justification:The historic rehab of old buildings into quality affordable senior housingisavery challenging
and a very expensive endeavor.The City of Dubuque support of this petition is absolutely critical in receiving state
taxcredits from thelowa Finance Authority.The"Local Government Contribution"section providesmuch needed points
for the developer's application to receive thetax credit awards,which is the majority ofthe funding for this project.I n fact,
withoutthis'LocalGovernment Contribution',the project will most likely not receive the needed points to receive the
tax credits. I n addition,given the very small margins for a project like this,the ten-year tax exemption is critical i n helpi ng
make the project work financially.
Summary Statement: As mentioned above, we believe restoring this great historic building for affordable
senior housing be a catalyst to help revitalize the North End Neighborhood.
RESOLUTION NO. 383-16
RESOLUTION FINDING THAT THE DESIGNATION OF THE MARQUETTE HALL
URBAN REVITALIZATION PLAN IS NECESSARY IN THE INTEREST OF PUBLIC
HEALTH, SAFETY, AND WELFARE OF THE RESIDENTS OF THE CITY OF
DUBUQUE, IOWA
Whereas, the City Council of the City of Dubuque finds that the property at 2222
Queen Street, (Property) is currently vacant and underutilized, and Cohen -Esrey
Affordable Partners (Marquette Hall, LLC), (Cohen -Esrey) has proposed to develop the
Property by rehabilitating the former Sacred Heart Elementary School into 28 historic
and affordable senior apartments; and
Whereas, the City supports the development and construction of housing and
residential properties which provide quality, affordable housing; and
Whereas, the Property is located in an area eligible for the Urban Revitalization Tax
Exemption program; and
Whereas, in the area proposed for designation under the Urban Revitalization Act is
an area in which there is a predominance of buildings or improvements which by reason
of age, history, architecture or significance should be preserved or restored to projective
use Section 404.1(3) of the Iowa Code; and
Whereas, through the Urban Revitalization Program, the Property is eligible to receive
a one hundred percent exemption from taxation on the actual value added by the
improvements for a period of ten years so long as it is assessed as residential property
or assessed as multi -family or commercial property, if the commercial property consists
of three or more separate living quarters with at least seventy-five percent of the space
used for residential purposes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The rehabilitation housing development at the Property legally described
as:
Lot #'s 31,32,33,34 Sanford Sub., according to the recorded plat thereof,
is deemed necessary and in the interest of the residents of the City;
Section 2. That the City Council supports the Cohen-Esrey's Petition asking the
Property be designated an Urban Revitalization Area and supports Cohen-Esrey's efforts
to receive a tax credit award from the Iowa Finance Authority for this Development.
Section 3. The City Council approves supporting the project and authorizes staff to
work with the City Assessor to complete the form 5S for the Developer's submission to
the Iowa Finance Authority prior to the November 17, 2016 deadline for consideration.
The estimated value of the ten year abatement is $179,830.
Section 4. The proposed Development is consistent with the City of Dubuque's
affordable housing strategies and goal to implement the City's comprehensive plan.
Passed, approved and adopted this7th day of November 2016.
Attest:
Kevi r' Firnstahl,
erk
oy D. Buol, Mayor
EXHIBIT 5S
IOWA FINANCE
AUTHORITY
LOCAL GOVERNMENT CONTRIBUTION
Form(s) shall be completed by the qualified Government Entity or Political Subdivision along with any
additional supporting documents as required in QAP Section 6.2.4.1.
Project Name Marquette Hall Residences
Project Address 2222 Queen Street, Dubuque IA 52001
Ownership Entity Name Holy Spirit Parish, Purchase offer by Cohen -Esrey Affordable
Partners(Marquette Hall, LLC)
Iowa Finance Authority (IFA) encourages developers to coordinate with Iowa communities regarding
community revitalization plans, where applicable. A Local Government Contribution creates a
presumption that the project is not in conflict with the local government's community revitalization plan, if
any.
This form will verify the Local Government Contribution effort referenced in the Qualified Allocation Plan
(QAP). A Local Government Contribution can be provided by a qualified Government Entity or Political
Subdivision. QAP Section 6.2.4.1 states the following items will constitute a Local Government
Contribution:
Form of Contribution
Additional Supporting Documents
Cash Contribution
Commitment letter
Gift of Land or Building
Third party MAI certified appraisal
Tax Abatement (not tax exemption)
Scoring exhibit only
Tax Increment Financing
Project specific city council resolution
Urban Revitalization Tax Exemption (URTE)
Project specific city council resolution
Enterprise Zone Credits
Scoring exhibit only
Enterprise Zone Sales Tax Rebate
Scoring exhibit only
Waiver of Fees
Scoring exhibit only
City HOME
Scoring exhibit only
Below Market Interest Rate Loan
Calculation showing value of imputed savings using
a market rate of six percent (6%) with a maximum
20 year Loan term and a maximum 30 year
amortization
QAP Section 6.2.4.1 states the agency making the Local Government Contribution shall indicate the
value of its contribution. The value of the Local Government Contribution is the value of the contribution
made by the qualified Government Entity or Political Subdivision minus the value of any consideration or
accommodation received by the qualified Government Entity or Political Subdivision in return for the
contribution.
The Governmental Entity or Political Subdivision completing this form understands that IFA will rely on
these valuations to determine whether the Applicant has met the requirements of the QAP to receive
points for Local Government Contribution.
IFA reserves the right to limit the amount of fees waived by any Government Entity or Political Subdivision
to one percent (1 %) of the Total Project Costs.
For scoring purposes under this category, a Government Entity or Political Subdivision contribution to a
Project provided through a certified Local Housing Trust Fund (LHTF) will be considered a qualified Local
Government Contribution only if the Applicant provides documentation from the LHTF showing the
Government Entity or Political Subdivision has made contributions to the LHTF during the current fiscal
year totaling at least the amount of the proposed Local Government Contribution to the Project.
2017 Round
EXHIBIT 5S
IOWA FINANCE
AU 7HOii'T'!
Qualified Governmental Entity or Political Subdivision Contribution(s) (8 points maximum)
® CASH CONTRIBUTION — Commitment letter attached
Amount
Source of Cash
Name of Entity Making
Contribution
$65,000
facade Grant & Urban Housing Incentive
City of Dubuque
❑ GIFT OF LAND —Third party MAI certified appraisal attached
Appraised
AmountNalue
Name of Entity Making Contribution
Location/Address of property:
Is land held free and clear of encumbrances? ❑ YES ❑ NO
If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied.
❑ GIFT OF BUILDING — Third party MAI certified appraisal attached
Appraised
AmountNalue
Name of Entity Making Contribution
Address of building(s):
Is land held free and clear of encumbrances? ❑ YES ❑ NO
If NO, disclose all known liens and encumbrances and explain how and when these will be satisfied.
❑ TAX ABATEMENT (not exemption) — No attachment required
AmountNalue
Term of
Abatement
Describe How Amount Was
Determined
Name of Entity Making
Contribution
179,830
10 years
Income calculation
verified by City of
Dubuque Assessor
City of Dubuque
❑ TAX INCREMENT FINANCING — Project specific city council resolution attached
AmountNalue
Name of Entity Making
Contribution
URBAN REVITALIZATION TAX EXEMPTION — Project specific cit
AmountNalue
Term of Exemption
Describe How Amount
Was Determined
Name of Entity Making
Contribution
179,830
10 years
Income calculation
verified by City of
Dubuque Assessor
City of Dubuque
❑ ENTERPRISE ZONE CREDIT (equity value) — No attachment required
2017 Round
EXHIBIT 5S
IOWA FINANCE
MJT11OR]J'/
Amount/Value
Name of Entity Making
Contribution
❑ ENTERPRISE ZONE SALES TAX REBATE — No attachment required.
AmountNalue
Name of Entity Making
Contribution
❑ WAIVER OF FEES — Limited to one percent (1 %) of Total Project Costs. No attachment required
Amount/Value
Type of Fees
Describe How Amount
Was Determined
Name of Entity Making
Contribution
Name of Entity Making
Contribution
6%
❑ CITY HOME LOAN — No attachment required
Amount/Value
Name of Entity Making Contribution
❑ BELOW-MARKET INTEREST RATE LOAN - Calculation showing value of imputed savings using a
market rate of six percent (6%) with a maximum 20 year loan term and a maximum 30 year amortization
attached. IFA shall use the imputed savings value or the principal amount of the loan whichever is the
lesser. IFA will allow the interest to be calculated only on a simple basis (not compounded) when
calculating.
AmountNalue
Market
Interest
Rate
Below-
Market
Interest
Rate
Describe How Calculated
Savings Was Determined
Name of Entity Making
Contribution
6%
City of Dubuque
Agency Name (Typed)
Roy D. Buol
Name of Agency Representative (Typed)
Mayor
Title of Age
Signature gency Representative
2017 Round
November 7, 2016
Date
MARQUETTE HALL
COHEN-ESREY Proposed Development
AFFORDABLE PARTNERS,LLC Quality Historic Senior Housing
North End Neighborhood Association Meeting
Wednesday November 2nd, 6:30 pm
Community Center, Comiskey Park
255 East 24th Street, Dubuque, 52001
Come and learn about an exciting new senior housing development at the old Sacred Heart
School in the heart of Dubuque's North End Neighborhood.
Cohen-Esrey Affordable Partners, an experienced developer of multi-family housing
throughout the Midwest, will present the plans for the renovation of this historic gem into 28
senior rental housing units.
For additional information about the meeting, please contact:
Chuck Harris, E.D.
North End Neighborhood Association
ChuckH 144(agmail.com
(563) 265-5761