Dubuque council approves rezonings, development agreements and sewer loans in unanimous votes

Dubuque City Council on June 16 approved a package of land‑use, financing and operational measures, voting unanimously on rezoning requests, a downtown housing development agreement, easements and multiple State Revolving Fund (SRF) interim loan notes to fund sanitary‑sewer projects.

The votes covered two rezoning requests (1395 Washington Street and a portion of the end of June Drive), the Plastics Center redevelopment agreement for 408 W. Fifth Street, an amended and restated lease for Vitera USA Grain LLC, an easement for a private storm sewer at the Switch development, awards and grants tied to downtown housing, multiple SRF interim loans to plan and design Old Mill/ Catfish Creek sewer improvements, and a change that reduces the fiscal‑year 2026 water rate increase from 9% to 8%.

Why it matters: the council’s approvals move several construction and design phases forward for the city’s sanitary‑sewer capital program (Old Mill lift station phases and Catfish Creek interceptor work), authorize incentives and grants to support downtown housing production, and clear the way for near‑term project bidding and right‑of‑way work. The SRF planning/design interim notes approved are interim steps on multi‑year projects the city identified during recent budget discussions.

What the council did – highlights and formal outcomes - Rezoned 1395 Washington Street from C‑4 (Downtown Commercial) to C‑1 (Neighborhood Commercial) to allow first‑floor residential use. Motion for final passage moved by Councilmember Jess Ochoa Roussell, seconded by Councilmember Wethal; roll call 6–0 (Kavanaugh, Wethal, Roussell, Resnick, Farber, Sprank). (Evidence: associate planner Sheena Moon presented the rezoning report and the Zoning Advisory Commission recommended approval 5–0.)

- Rezoned a portion of property at the end of June Drive from AG (Agricultural) to R‑1 (Single Family) to allow a single‑family home on a subdivided portion of the parcel. Motion for passage moved by Councilmember Roussell, seconded by Wethal; roll call 6–0. (Zoning Advisory Commission recommended approval 5–0; one letter of support was reported.)

- Adopted an amendment to the Unified Development Code to create a separate definition and permitting approach for “restaurant, carryout (not including drive‑in)” so smaller walkable carryout businesses can operate in more commercial districts. The text change was proposed by staff; the Zoning Advisory Commission recommended approval 5–0. Motion to adopt as amended (to match state timing on other matters) passed 6–0.

- Approved a development agreement with Plastic Center Inc. for rehabilitation and conversion at 408 W. Fifth Street that includes: a capital investment of approximately $3.2 million to create nine rental units and façade restoration; a downtown rehabilitation grant of up to $35,000; a downtown housing creation grant of up to $90,000 ($10,000 per unit); and a 15‑year TIF rebate estimated not to exceed $325,000. Motion passed 6–0. (Agreement requires the developer to accept Housing Choice Voucher applicants who are otherwise qualified.)

- Authorized a grant of storm‑sewer utility easement to Switch Development at JFK LLC for a private storm sewer that will discharge through NW Arterial right‑of‑way to a drainage ditch. Motion passed 6–0.

- Approved an amended and restated lease with Vitera USA Grain LLC for property on Commercial (East Seventh) Street; the company will reduce leased acreage by about 1.13 acres starting 2027, lowering lease payments; council approved 6–0.

- Adopted a number of interim SRF planning/design loan notes (public hearing and proceedings) to fund planning and design work for Old Mill lift station phases and Catfish Creek sanitary interceptor projects: (1) up to $500,000 SRF planning/design note (0% interim, 3‑year hold option) — motion passed 6–0; (2) up to $15,000,000 SRF loan for Old Mill Road lift station & force main, variable rate ~2.84% + servicing fee (20‑year term) — motion passed 6–0; (3) up to $3,600,000 SRF planning/design note for Old Mill Phase 3 (Middle Fork) — motion passed 6–0; (4) up to $3,400,000 SRF planning/design note for Old Mill Phase 4 (South Fork) — motion passed 6–0. Staff said the SRF loans carry favorable rates and are intended to be rolled into construction loans when projects are ready.

- Received an update on PFAS litigation: the city is a participant in MDL settlements; a portion of a national settlement with 3M is expected to net the city approximately $3.4 million (paid over years; amounts may change slightly as set‑asides and interest are allocated). The council received and filed the update 6–0.

- Reduced the FY26 proposed water‑rate increase from 9% to 8% because of anticipated PFAS settlement receipts and FY25 operating savings. The ordinance amendment (and revised minimum monthly charge to $9.61) was adopted 6–0.

- Ratified the Teamsters Local 120 mixed collective‑bargaining agreement (effective 07/01/2025) and approved several municipal governance changes (increase civil‑service commission membership from 3 to 5 to comply with a recent state law change and an ordinance adjusting mayor and council pay, effective 01/01/2026). All motions passed 6–0.

- Contract award: council awarded the 2025 Fire Headquarters HVAC replacement public‑improvement contract to Gizi Sheet Metal Co., Inc., in the amount of $451,500 (about 30% below engineer’s estimate). Motion passed 6–0.

- Park, boards and appointments: the council approved the Southpointe subdivision park plan and a long list of appointments to boards and commissions (Historic Preservation Commission, Arts & Cultural Affairs Advisory Commission, Board of Library Trustees, Civic Center Advisory Commission, Park & Recreation Advisory Commission, Resilient Community Advisory Commission, Transit Advisory Board carryover for later appointment, Zoning Advisory Commission). Numerous individual appointments were approved by roll call (see meeting minutes). Motions passed 6–0 unless otherwise noted.

Votes at a glance (selected formal roll calls): all listed measures above passed by roll calls reported as 6–0 (Councilmembers Wethal, Kavanaugh, Roussell, Resnick, Farber, Sprank voting aye on each recorded motion). Where a motion was tied during boards & commissions appointments the item was carried to the next meeting per council practice.

What councilors said: staff and council emphasized that the SRF loans and intermediate planning steps are part of a multi‑year, $131 million wastewater capital program (credit: City Manager Mike Van Milligen) that prioritizes Old Mill/ Catfish Creek sanitary projects. Economic development staff described downtown housing incentives and the rationale for façade and housing grants. Planning staff said the UDC amendment for carryout responds to recent local requests and aims to distinguish lower‑impact carryout operations from drive‑through businesses.

Next steps: projects funded by the approved motions move into design, bidding, easement acquisition and construction planning. Staff will return with contract awards, additional design work, and (when required) follow‑up ordinances and resolutions to implement the approved grants and loans.