Hi Alyson,
I'm still a little confused about the process. Not sure why you need the issues in one queue if you are just going to convert them to projects.
A thought that might help you out. For one of our agencies, we have a process for change orders. The PM adds an issue onto their project and assigns the Change Order team. Because they are an assignee on the project, the team gets access to the project to see everything they need. Then they convert that issue to their own project and attach the template they need.
For reporting purposes, you can either do an issue report where the Team ID equals your team or you can do a project report where the Owner Team IDs equals the team.