$45 Million Affordable Multi-Residential Project Proposed for Former Bowling and Beyond Property
The Dubuque City Council will hold a special meeting today to set a public hearing for October 16 to consider a proposed development agreement with a developer to build a $45 million, 201-unit housing development at 1860 Hawthorne Street.
The City of Dubuque currently owns the former Bowling and Beyond property. Under the terms of the proposed agreement, the City would sell the 5.25 acres of property to Union at the Marina, LP, a subsidiary of The Annex Group, an Indiana-based multi-family housing developer that creates market-rate, workforce, affordable, and student housing communities. The proposed purchase price for the property is approximately $4 million but the development agreement calls for the City to award the developer a Land Acquisition Grant of $20,000 per unit created, the total of which would not exceed the property purchase price.
The developer will construct 201 rental units on the property and will seek funding assistance through the 4% Low-Income Housing Tax Credit program, a federal program administered by the Iowa Finance Authority (IFA) that provides a dollar-for-dollar reduction (or credit) to offset an owner’s federal tax liability for a 10-year period. According to IFA, “This tax credit often provides the last critical element to ensure the financial feasibility of the project. These affordable housing developments often attract young professionals, working families, seniors, or persons with disabilities who are unable to maintain a house but want to live independently.”
The proposed development agreement calls for the City to amend its Greater Downtown Urban Renewal District Plan so the developer can receive 15 years of tax-increment financing (TIF) not to exceed approximately $10.2 million. Additionally, the City would make approximately $1 million in improvements to sanitary sewer infrastructure in the project area.