Dubuque council approves downtown rehab grant, incentives for Schmidt Island hotel and several public contracts

The Dubuque City Council on March 3 approved a package of development agreements and public-contract awards, including a downtown façade and office rehabilitation project and tax-increment incentives tied to a new boutique hotel on Chaplain Schmidt Island.

Economic-development director Jill Connors told the council FEH Realty, a subsidiary of FEH Associates, plans a $2,500,000 rehabilitation of 902 Main Street to create larger office space and to repair structural and roof issues. Under the approved development agreement FEH must maintain 11 full-time-equivalent positions and create at least 10 additional FTEs by Oct. 1, 2028; the company will receive up to 10 years of tax-increment financing rebates estimated not to exceed $115,000, and the city will consider a downtown rehabilitation grant of up to $35,000 pending design approval. Connors recommended approval and the council adopted the resolution 7-0 (motion by Sprank, second by Wethal).

Why it matters: The agreement is intended to restore a highly visible downtown building and retain and grow local office employment in central Dubuque.

Schmidt Island hotel, lease amendment and related incentives

The council also approved a development agreement with the Dubuque Racing Association (DRA) for the construction of the Key Hotel, a seven‑story, 90‑room Tapestry Collection by Hilton property on Chaplain Schmidt Island, with construction described as already underway and substantial completion targeted for Sept. 30, 2026. City staff described the hotel as part of a multi‑year improvement program at the island and said the project represents about $49,000,000 in private investment. The DRA’s financing includes a…