HomeMy WebLinkAbout2002-05-07 Transcription#2a Page 1
ITEM NO. 2a SPECIAL PRESENTATION - IOWA CITY KICKERS
Lehman: Item two is a special presentation that I think we're really going to get
a kick out of: Iowa City Kickers.
Brent DeNeice: Good evening. Mr. Mayor, City Council Members on behalf of the
Iowa City Kickers soccer recreational league, I would like to present
the Iowa City Council with a check tonight for $10,000. These funds
demonstrate our continued partnership with Iowa City and the
development of quality recreational complex devoted to soccer. Since
1994 Iowa City Kickers has donated over $360,000 towards the
benefit of youth soccer. We would like to thank you for your
continued support of our recreational soccer league. I'm Brent
DeNeice I'm the current president of the Kickers Organization. This is
Doug Ginsberg and he's a current board member of our organization.
Doug would like to say a few words.
Doug Ginsberg: I just wanted to add that I've been with Kickers for a long time and
we've enjoyed the relationship that we've had with the City and we've
got a lot of fun and new exciting things planned for the park over the
years. And I look forward to the continued relationship and the
continued support with and from the City. Thank you.
Champion: Thmxk you.
Vanderhoef: Thank you.
Ginsberg: And I guess tonight I'd like to hand this check over to you.
Champion: Well, come on up. Good job.
DeNeice: Thanks.
Kanner: Twenty year with these kids will they know when ....
DeNeice: We'd like to think that we can improve them.
Lehman: That's absolutely amazing. $360,000 that this group has contributed to
the soccer complex.
O'Donnell: Tremendous.
Pfab: If we had more groups like that we wouldn't have the financial
problems we got, Steve.
Lehman: Thank you very, very much.
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ITEM NO. 3dMAYOR'S PROCLAMATIONS
BICYCLE MONTH - MAY 2002
Lehman: Reads proclamation.
Karr: Here to accept is Greg Kovaciny, current web master with Bicyclist of
Iowa City.
Greg Kovaciny: Thank you very much Mayor Lehman, City Councilors, City Manager
Atkins, Assistant City Manager Helling and others. I'm Greg
Kovaciny charter member, past president and current web master of
Bicyclist of Iowa City founded in 1976. I'm also member of the JC
Cog Regional Trails and Bicycling Committee. On behalf of
Bicyclists of Iowa City I'm pleased to accept this proclamation
declaring May as Bicycle month in Iowa City and the week of May 13
through 17 as Bike to Work and Bicycle Week in Iowa City. The
month of May is a great time to ride more miles if you've continued
riding throughout the years I have or to dust offyour bike from winter
storage and start back up. In 1976 Iowa City was granted the
designation of bicycle friendly community by the League of American
Bicyclists. Iowa City has done much to enhance bicycling. That
continues to include bicycling in the plarming process. The job is
nowhere near over, but continues albeit slower at times than many
would like. Lasting things take time. Iowa City has many multi-user
trails that are used to walk, jog, skate or bicycle and is working toward
a comprehensive trails network. It's good to keep in mind that
bicycles have a legitimate right to the roadway whether or not there is
an at-grade shoulder or a separated multi-user path nearby. As your
visions are now being made to the JCCOG long-range multi-mall
transportation plan including the section called pedestrian and bicycle
plan. It's good to see that planners continue to keep bicycling
transportation in mind in their on street planning. Bicycling on the
street is a safe and efficient activity when the bicyclist operates his or
her vehicle bicycle as a vehicle. This is called effective cycling. It
works. Motorists and bicyclists can, do, and should share the road.
Additional facility enhancements to new roads or existing roadways as
they are being repaired or rebuilt can, if thoughtfully done, help make
on-street bicycling even better. It's good to see that this has not been
forgotten. Enjoy May. Enjoy the summer. Ride your bike. See you
all on the road. And see you at our web site: http://iccn.inav.net/~eic.
Champion: I'll remember that!
Kovaciny: I've got a few cards if you want them.
Lehman: If anybody can remember that web site needs a proclamation for it.
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ITEM NO. 3a INTERNATIONAL MIGRATORY BIRD DAY - MAY 11
Lehman: We have another proclamation. Reads proclamation.
Karr: Here to accept the proclamation is Jim Walters.
Walters: I'm pleased to accept this proclamation on behalf of everybody who is
involved with bird conservation efforts and the efforts around
International Migratory Bird Day. That's this coming Saturday.
There's a whole weekend of events going on. I just want to...and
they'll be in the papers - the schedule and the time - so I'll just touch
base quickly on them. Early Saturday morning at 7:00 on in Hickory
Hill Park there will be Songbird Project and Friends of Hickory Hill
are having a kind of an early morning coffee break for bird watchers.
You can come out and stop at the north shelter and have a cup of
coffee and a bagel and donut or something - juice too. And see why
Hickory Hill Park is regarded throughout the Midwest as a kind of a
premier birding location. It's over 189 species have been sited in and
over this Park which makes it a destination for birders around the
Midwest to come and visit. Later that morning, the Iowa City Bird
Club and the Raptor Project are hosting a whole series of projects at
McBride Nature Center and the schedule of this will be in the paper
and would like you to come out for that. On Sunday, May 12, the
Songbird Project in conjunction with the Johnson County
Conservation Board holds our twelfth annual Mother's Day Bluebird
Walk at Kent Park and that's from 1:00 - 4:00 in the afternoon. You
can come out, see the Bluebird Trail, see bluebirds in the nest, a whole
range of educational programs will take place at the conservation
education center. One of the things that I want to share with all of you
is our International Migratory Bird Day poster which celebrates the
various...some of the various species that we celebrate on
International Migratory Bird Day. I want to give each of you a copy
of this poster and a schedule of events for the weekend and hope that
you can come out and join us. Thank you very much.
Lehman: Thank you.
Champion: Thank you. I appreciate that. Very pretty.
Kanner: Jim, do you do early morning bird walk?
Walters: Yeah
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ITEM NO. 4 OUTSTANDING STUDENTS.
4a. LINCOLN ELEMENTARY: MAYA BHATTACHARJEE,
KELLY SKALLERUD, ALEX WEISE
Lehman: Item four is recognizing outstanding students. Tonight we have
students from Lincoln Elementary. So if those folks would come
forward please. You guys can stand back here with me. That way I
can't get behind you. This probably, I think, is the favorite time of
the Council meeting for the entire Council. I know it's my favorite
time. So what I'm going to do I'm going to ask each of you to give
your name and then tell us why you've been nominated for a
citizenship award. We'll start with you.
Kelly Skallerud: My name is Kelly Skallerud.
Lehman: Wrong paper. We're going to get the right one though.
Champion: There we go.
Skallerud: Thank you for this award. I believe that I did a great job helping out
in our school and receiving this award will make me a better student
for all the things I did. For example, I am in Safety Patrol. I help
kids to and from school safer. I write to the kindergartners and help
them with the special activities. I help kids younger than me and
kids my age with projects. I volunteered for opportunities such as
tech mentor and room server and media aid. Thank you for
choosing me out of all the other people. Thank you.
Maya Bhattacharjee: Hi. I'm Maya Bhattacharjee. First, I would like to thank you for
this award. I would also like to thank the intermediate teachers
from Lincoln Elementary for giving me this opportunity. I really
enjoyed being a tech mentor, a student council representative, a
school lunch server and a safety patrol member. I also really
enjoyed teaching the younger students at Lincoln how to make
accordion books, sewing quilt squares for our school quilt and other
activities that are involved in our all school project. But, I would
have to say that one of my favorite experiences was reading to the
kindergarteners. I really liked interacting with them. We had a lot
of fun. Thank you again for this award. This has been a great year
at Lincoln.
Alex Weise: My name is Alex Weise and I would like to say thanks for this
award. I feel really privileged to receive it. I enjoy helping my
fellow students at Lincoln Elementary by being a Safety Patrol
captain, a student council representative, a tech mentor, media aid,
and a lunchroom server. I'm especially enjoy my all school buddy
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activities when I help the younger students do a project like sewing
our school quilt. Reading to the kindergarteners is probably my
favorite activity. Thank you again for this award.
Lehman: For those of you that don't know these students are selected by their
peers and it probably isn't a tougher group of folks to impress than
your own peers. So, I think that it is a significant honor that you
folks have been selected. You should be very, very proud of
yourselves. I want to read one of the proclamations and I have one
for each of you. For outstanding qualities of leadership within
Lincoln Elementary as well as the community and for a sense of
responsibility and helpfulness to others, we recognize these students
as outstanding student citizens. Your community is proud of you.
Presented by the Iowa City City Council. May 2002. Alex, Kelly,
and Maya. Let's give these folks a big hand.
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ITEM NO. 5 CONSIDER ADOPTION OF THE CONSENT CALENDAR AS
PRESENTED OR AMENDED.
Lehman: Item number five is consider adoption of the consent calendar as
presented or amended.
Vanderhoefi Moved.
Champion: Second.
Lehman: Moved by Vanderhoef. Seconded by Champion. Discussion?
Kanner: I just wanted to make note of a couple of hearings that are going to be
happening. Item 5d(1) we're setting a public hearing at our next
meeting May 21st on using Section 8 for Homeownership Program and
I personally look forward to that and if people want to give input on
that they should come in a couple of weeks. And I think that's the
main item that I wanted to mention.
Lehman: Okay. Other discussion? Roll call. Motion carries.
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ITEM NO. 6 PUBLIC DISCUSSION
Lehman: Item number six is public discussion. This is the time reserved on the
agenda for members of the public to address the Council on items that
do not otherwise appear on the agenda. If you wish to address the
Council, please sign in, give your name, address and limit your
comments to five minutes or less.
Mike Porter: Hi. My name is Mike Porter. I own The Summit and One-Eyed Jakes
downtown Iowa City. Before I begin, I would like to thank you for
taking my time...or for taking your time and I'd like to voice a little
opinion ifI can. Right now as a bar owner, I feel like I'm being a little
bit attacked and I'd kind of like to come here expressing thoughts on
how we do business to you folks. To show that a few of us are out
there being...trying to do the responsible and right thing. I've made a
list of some of our policies and procedures and I'd like to explain a
couple of them to you. These policies and procedures are there not
because the City told us they had to be there, not because the City
made a law, and not because the State made a law. These policies are
here because I think they're the right things to do. First of all, when I
opened The Summit we decided that we will never, ever advertise a
drink special in the paper. We've not done that. We stopped
advertising alcohol specials in the paper at Jakes about two years ago.
We do not serve pitchers of beer at The Summit. It is our policy that
our staffdoes not light shots on fire. That is a policy in our employee
handbook and that was in there years before the Etc. incident. We
have a 50 page employee policy and training manual that management
uses and trains...we use to train new staff with. This next one is kind
of a big issue with us. 3akes was the first bar in Iowa City to have all
its servers and bartenders TIPS certified. The Summit had all of its
bartenders and servers TIPS trained before we opened. TIPS stands
for Training and Intervention Procedures for the Servers of alcohol.
TIPS is the nation's leading alcohol sales and service training
program. TIPS effectively teaches bartenders and servers how to sell
and serve alcoholic beverages responsibly. It is a six hour course that
is instructed by the police department. Over 300 major insurance
carriers provide premium discounts for TIPS certified businesses.
These insurance carriers through their own research and statistics have
determined that TIPS certified establishments are operated in a safer
manner than the industry average and thus posing a lower insurance
risk. My insurance company does not offer a discount for that. We
pay several thousand dollars a year to have all of our bartenders and
servers certified out of my own pocket just because we think it's the
right thing to do. The industry says it's safer to have it done. We do
it. Our kitchen stays open at The Summit every Tuesday through
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Saturday until 1:00 a.m. We may add Sunday and Monday through
the summer months. Jakes has a person at the door seven nights a
week - that being at the front door. And The Summit does on every
night except Sunday, however, once again we might add Sunday to
that list as well. The Iowa City Police Department routinely speaks
and helps train our staff at employee meetings. We do not admit
anyone under 19 years old at night in either business. It is not illegal
to allow 18-year-old adults in, we choose not to because it could
involve high school students or freshman that need time to mature and
make responsible decisions. The Summit is the only restaurant and bar
in Iowa City with a sprinkler system that activates strobe and siren
alarms and shuts down power in the event of a fire. There are also
manual pull stations at all exits. We do not allow bar crawls at The
Summit and only before 11:00 p.m. at Jakes. We don't allow early bar
crawls at The Summit because it interferes with our dinner. We don't
allow late bar crawls at either place because people have a tendency to
become intoxicated lat in the evening and it's a situation that we'd like
to avoid.
Kanner: Mike, what's a bar crawl?
Porter: A bar crawl - it's something that's actually started in the last year.
They...sporadically they happen, but it's become really popular in the
last year. A group of whoever, they'll get together, they'll call and
establishment, schedule a time when they can come in ~ say for a half
hour or an hour - they usually end up going to 8 or 9 or 10
establishments in a night having a drink, going on to the next place.
Obviously by the time, if you're on their schedule at midnight, they
come in; they have a tendency to be intoxicated. Therefore, we
stopped booking them late and at The Summit, we stopped booking
them all together. This is something that they prearrange. They
usually have t-shirts made. They come in, they want alcohol specials
or whatever and we just decided that since we've been dealing with a
lot of them that have become intoxicated, we just stopped doing it.
Lehman: You need to wind this up, Mike.
Porter: Okay, yeah I have two more points.
Lehman: Okay.
Porter: Second to last thing, we never mn shot specials at either establishment.
We flat out do not put shots on special. People become more
intoxicated when they drink shots, so we don't put them on special.
The last thing on my list is that both establishments offer financial
awards for our employees that have responsible serving practices.
This includes rewards for successfully passing undercover police
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stings and compliance for alcohol and tobacco laws. Once again, I just
wanted to let you guys know some of the bars out there we are trying
to be responsible. We're trying to do the right thing. And we're trying
to do this without being told by anybody or with no State laws make us
do any of these things. Thanks.
Lehman: Thank you and I think that we could all say that we appreciate it. Yes,
Irvin, but we need to move along.
Pfab: You mentioned the fact that you don't advertise bar specials in the
paper.
Porter: Right.
Pfab: You advertise in other ways?
Porter: We advertise events, but we don't advertise alcohol specials.
Pfab: Anywhere?
Porter: No. Not on the radio or anything. No.
Pfab: On the window or anything like that?
Porter: No, we don't even have it on the window.
Pfab: Okay. That's fine. I think that's good to know.
Porter: Yeah, we advertise. We advertise events such as comedy night if we
have special events like a beach party or something like that, but we
don't put in drink specials advertise that.
Pfab: I appreciate that.
Lehman: Thank you.
Robert Grimm: Good evening Council Members. I heard one word here.
Lehman: Give us your name first.
Grimm: Five minutes won't allow me time to do that. But I will. I'm a
lifetime resident of this county.
Lehman: You have to give your name before you start for the record.
Grimm: I will. My name is Robert Lea Grimm.
Lehman: Okay, Rob, thank you.
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Grimm: (Can't hear).
Pfab: You'll need to speak into the mic.
Grimm: You can hear me.
Dilkes: No, sir we can't.
Pfab: We can't record it.
Grimm: Oh, you can't. Five minutes won't take very long. The alcohol is not
where it's at in this town misters and misses. I don't care what they do
in Paris. It's just not in the world really alcohol really (Can't hear)
either. But, that's a personal privilege. But, some things are federally
regulated. I will reserve all my comments until you close down the
tattoo parlors. You can come up with your illegal ways. Illegal use of
food coloring. Federal regulated. Get them to pass ordinance (Can't
hear). Post a policeman at the front door your establishment is closed
due to federal regulations. Tattoos are illegal. Set a trend for this
world. Until then, I see some other snafus pulled your community, my
community my ancestors' community the way it was developed. Screw
them all and run with the federal building you know foot (Can't hear)
on it without provisions for the architects. A Camegie building. Our
library. Grant a gift from the Carnegies. Monkey around with the front
door. You think that's proper without consent. When I got great ideas
for you people, but you see you're all short sited you cannot see. And
you get involved with the alcohol (Can't hear) and you're little parking
problems. It's not a problem - take the one-armed bandit away. If
you're relying on your sources for your income, you're in trouble. Like
I said, I heard one key issue last night from Mr. Mike O'Donnell. We
are not well healed or not flush is the word he used. Your money
should be spent 50% for progress and 50% for our nation on the move
like ants. Crazy ants. Or maybe bees in a swarm. It's come to that.
You know - probably some of you don't - but when a nation's on a
move you got to have parks and facilities for people. Got to have more
openness. Got to look blind sidedness. My five minutes are up.
Regard to your public electric utility. I will make a mention about that.
It could be federally granted as a project with the University as an
engineering college addition. The best bet would be to locate it on a
federal property on the reservoir. That's my own brain child. You
people play around with your parking meters.
Lehman: Thank you.
Grimm: And really you're too small in here. You're too close together. You're
City Hall is not like the old one you know you could go downstairs and
use the urinal. You can't do it here. What's wrong with this city?
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Thanks. And you're doing a good job really.
Lori Benz: Good evening. My name is Lori Benz. I live at 2012 Dunlap Court
here in Iowa City and I'm your appointee to the Senior Center
Commission. And I want to give you a brief update this evening about
some of the activities and concerns that have been discussed at the most
recent commission meeting. One of the serious considerations that the
Commission has had to address is the budget reduction that the Center
faces for this upcoming fiscal year beginning July 1st. The...as you all
know...the Johnson County Board of Supervisors has decided to reduce
funding by $45,000 for this upcoming fiscal year which translates into
about a 6% cut from their previous contribution. And the Commission
was asked to review areas that...where these cuts might occur at their
last meeting. They approved the following cuts beginning the first of
July: they will be postponing a capital improvements project which will
cost about $18,000. This is to place a special fire safety device on the
elevator in the building. And that hopefully will occur in the future, but
it will not occur in the next fiscal year. They've also decided to reduce
a temporary staff position with the Senior Center's television. Their
public TV production which is really unfortunate because it does
provide a lot of people - both older and other relatives, friends of older
people - a chance to view programs and information that is offered by
the Senior's Center. They also will be reducing the work study students
by 75%. And they will be reducing the maintenance hours by and hour
and a half daily. So there will be cuts in that area. And finally, the
largest cut at this point will be with the mailing of the Senior Center's
newspaper - The Post. They will, beginning in July, they will mail only
to currently registered individuals at the Center. And that will save
approximately $7,000. Again that's, I think, a very unfortunate
situation because it does allow people to receive that by mail in their
home to be better aware of what's being offered by the Center. The
Commission also considered some revenue generating options. It's
difficult to really look at some of these because the philosophy of the
Center in the past has been to be a non-membership driven entity. It's
really had a lot of benefits by doing that so that people feel welcome
from all over the community. But, the reality is that if the Center is not
a revenue...it doesn't have a lot of revenue producing sources, so one of
the areas that they're considering is annual membership fees of $10 a
year for Iowa City residents, $15 for non-Iowa City Johnson County
residents and $25 a year for individuals outside of the County. These
are all options at this point. They are still being discussed along with
the possibility of assessing rental fees to the agencies that are currently
housed there. Again that hopefully that won't occur, but the budget
reality is that there will be shortfall. I also want to tell you about a
landscaping project that will be implemented as soon as the steps are
completed in the front of the building. The west facing side of the
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building. Betty Kelly is coordinating the plans for installing perennials
and low-maintenance shrubs along that side. Mary Lou Gay designed
the plans for it and master gardeners will actually be installing the
plantings probably in June. I also want to let you know that the Center
held a volunteer recognition last month. This is...I want to mention it
not because you aren't aware. You all, hopefully, had a chance to read
about it, but volunteering is such an important component at the Center.
They honored 522 volunteers who gave 24,188 hours. And I had the
privilege of introducing two people that I call "near centenarians."
They were both in their late 90's and actively volunteering. I also want
to let you know that tomorrow Glenn Jablonski will be honored at a
reception. He is being recognized as the 2002 Senior Volunteer of
Distinction. Many of you know him. He's a lifelong resident of Iowa
City. And he has been volunteering at the Center since 1982 leading
the Voices of Experience. So, a lot of wonderful things are happening
down there and the Commission is really looking carefully at how to
maintain the programs and the facility with the funds it has available. I
would be glad to answer any questions.
Pfab: I have a couple of questions. Does the Senior Center have a web site?
Benz: It is developing one, yes.
Pfab: Would that be a place where you could post The Post?
Benz: It would yes. It will be located at that web site.
Pfab: Okay.
Benz: And that will help some individuals who have intemet access.
Pfab: And I would imagine that by asking those who could come to that it
wouldn't be necessary to mail them or even produce them.
Benz: Absolutely. If you have intemet access you will be able to read The
Post there. That doesn't include everyone, but it will reach those
individuals who have that technology.
Pfab: But, the people that have it...if you could ask them to volunteer so that
you wouldn't have to publish or mail them to those people.
Benz: It will be continued to be also delivered - hand delivered. It's the
mailing costs that they will cut back on as well as some of the printing
costs. That's what will be cut significantly. But, if any of you are now
receiving The Post unless you're a registered member, you will likely
have to pick it up here. So, I just wanted to let you know that.
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Lehman: We can do that.
Benz: Good.
Kanner: Steve, you had given us a memo with your recommendations and said
they would go into force. I assume the combining of the two part-time
people into one permanent time you've listed an option without
healthcare. I'd assume that they would have to...they would be in the
union and receive healthcare
Atkins: Yes.
Kanner: That's not an option to not get healthcare.
Atkins: That's correct.
Kanner: So, I assume that you've picked up on that.
Benz: Yes, the savings is going to be in the hours the reduced number of
hours.
Kanner: You have here two options. One with healthcare and one without
healthcare.
Benz: Yes.
Kanner: Without healthcare is not an option.
Champion: Well, it is if you have other insurance.
Benz: I'm sorry?
Karmer: You listed here in your recommendation the one permanent combining
of 50% and a 69% person who are temp who are part-time and I assume
don't receive healthcare into one full-time permanent person and you
list the amount of money that you would save. One is with health
insurance option and one without health insurance option. And I would
assume that it's not an option. That one permanent full-time person
would have to receive...
Atkins: The employee...it's the choice on the part of the employee...
Champion: Yeah.
Atkins: If the employee chooses to exercise the right to the provided health
insurance. Often a spouse may have it. So that the employee is
provided full insurance coverage just like any other full-time City
employee.
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Kanner: I see. I was assuming that they were coming from our management
option, but they're coming from an employee.
Benz: Right. It would be the employee that makes that choice. If they want to
waive that.
Kanner: All right. My apologies.
Benz: No problem.
Kanner: The other thing is that I hope you don't implement the fee schedule for
members. I know it would be difficult for a lot of people. If you do
though I would recommend halving that to $5. I go there quite
frequently to the Senior Center and I know there are a lot of people who
even that $10 would be somewhat of a burden. I think $5 would be
more reasonable.
Benz: There's no question that we don't want to do this. There's also the
financial reality of trying to maintain a facility and its programs at a
standard that can...that we want it to stay at a certain standard and be
accessible to as many people as possible. And somewhere those kinds
of decisions about where that money is going to come from has to be
made. The idea of memberships is not something that I particularly
like. I wrote and editorial in the Press Citizen talking about how that
was debated about many years ago when the Center first started because
it also tends to discourage friendships from occurring as you said if
people don't want to have something about becoming members. They
may resist that notion. But, there is a financial reality that we have to
face so we'll do the best we can.
Kanner: As you might know, yesterday we talked about charging rent for elderly
services.
Benz: I know that, yes, I know that the Staff and Commission are looking at
possible fees for agencies housed in the Center as a source of revenue as
well as other options so would be very glad to hear any other ideas that
you have.
Lehman: Good luck to you.
Benz: Thank you very much.
Lehman: You've got a good group.
Benz: Thanks.
Vanderhoef: What time is the reception tomorrow?
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Benz: The reception tomorrow is at 2:30 in the assembly room and I hope you
can join us.
Lehman: Thank you.
Alaina Welsh: Good evening. My name is Alaina Welsh and I work with Bums and
Burns. Many of you may know we're just down the street at 319 East
Washington. I'm here tonight to respectfully request that some time be
set aside on the Council agenda in two weeks...time on the agenda for
discussion and action regarding the designation of an Enterprise Zone
for Emerson Point. Emerson Point is the first all affordable assisted
living project in the State of Iowa. It has recently been selected by the
Iowa Development of Elder Affairs as a model project for the State and
will be showcased nationally by the Robert Wood Johnson Foundation.
Since this time last year when we first asked the Council to consider
looking into the possible benefits of an Enterprise Zone, Emerson Point
has been fully funded by the State of Iowa. Now that Emerson Point
has been funded, we can provide you with more specific information
about how the Enterprise Zone would directly benefit the low-income,
frail, elderly tenants of Emerson Point. It is estimated that Enterprise
Zone would provide $350,000 to Emerson Point. Emerson Point would
also be able to create 12 new permanent employment positions. In
addition to the employment that would be created by using local
subcontractors and contractors to build the project. Enterprise Zone
benefits can be used in a variety of ways. We propose to use it in two
ways. First, to cover any construction costs overrun that may occur in
building the project. We say this only because we are realistic in that
we cannot make any more promises until we first can promise you a
building. Second, and we anticipate a majority of the funds being
available for this use, we'd like to use the remainder of the $350,000 to
provide rental assistance directly to the tenants of Emerson Point. This
is a critical, critical issue for Emerson Point as an assisted living
project. Enterprise Zone funds would allow us to provide 1,200 months
of full rental subsidy for the lowest income elderly person at Emerson
Point. 1,200 month of rental assistance. There's currently a 12 month
waiting list for the section 8 voucher for the Public Housing Authority.
A frail elderly person when it's determined is eligible or needs the
assistance of an assisted living program cannot wait 12 months for a
Section 8 voucher to get into that program. That can often hardly
...they can't wait six months or even a month sometimes. They need
assistance available immediately. Even when there is not a waiting list
for a Section 8 voucher. Turn around time for a Section 8 application is
typically six to eight weeks. This time could easily be bridged with a
rental assistance that we would be able to provide with the Enterprise
Zone funding. For every low-income, frail, elderly person that is
housed at Emerson Point instead of a nursing home saves the State over
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$1,100 a month. That's over $50,000 a month Emerson Point will save
the State of Iowa. Enterprise Zone benefits $350,000 is provided by the
State through a state tax credit and a sales tax refund. It is not provided
by the City of Iowa City. However, we need the assistance of the City
to designate the zone so that we can apply to the State for the $350,000
it's eligible for. The subsidy that the State is willing to provide - those
$350,000 would easily be recovered by the State in the first six to
seven months the building operates due to the cost savings Emerson
Point can provide to the State by avoiding early nursing home
placement. And the key is for low-income, flail, elderly. When they go
into a nursing home, the State picks up the full tab there. Without the
benefits of the Enterprise Zone, many more flail, elderly that are low-
income will be forced into early nursing home placement. Even when a
Section 8 voucher does become available they will be unable to return
to the community due to their stay in the nursing home. They will have
lost much of their independence and their ability to return to something
such as an assisted living program. We have many wonderful entities
that have made substantial commitments to Emerson Point's success.
And several of those organizations would like the opportunity to discuss
with you the importance of this project and what Enterprise Zone
benefits mean. And in two weeks they would like to come here and
discuss that with you and two of those entities is Memy Hospital and
The Heritage Area's Agency on Aging. So the short version is please,
please, please put us on your agenda in two weeks. Please take the time
to revisit this issue in light of this already funded, extremely needed
project for not only this community, but for the State. This is an
opportunity for us to discuss the project, to get everyone more involved
with what we're trying to provide here, and an opportunity for the City
of Iowa City to participate in what I believe is truly and exceptional
project that is the first of its kind. Thank you.
Kanner: Irvin, you've been looking into Enterprise Zones when you were a big
advocate. We talked about it in the past. This seems to be a new bent
on it.
Pfab: Oh, I think that the benefit to the City is just unbelievable.
Lehman: Is there interest in putting this on a work...
Vanderhoefi Let's talk about it sometime.
O'Donnell: Yeah, sure.
Lehman: Well, I don't know that we can talk about it Council time. It was
brought up now.
Kanner: We could put it on the agenda.
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Pfab: Would a motion be to put it on
Dilkes: You can decide right now to put it on the agenda, I mean that's not...
Lehman: Is there interest in making that an agenda item?
Pfab: I would move that...
Dilkes: You don't have to have a motion. If there are three of you that want to
put it on the agenda in a couple of weeks, that's fine.
Grimm: May I interrupt please. To coin a phrase, Emerson Point has already
been used for a landmark in the United States. Okoboji, Iowa. I object
to them putting and Enterprise in the name of somebody else's
endeavors. Thanks.
Lehman: Okay. Steve, I think that we have enough. It should be on the agenda
in two weeks from last night.
Atkins: I'll take care of it.
Lehman: Okay. Any other...
Pfab: Will that be also...that will be on the work session, will that also be on
the formal Council?
Vanderhoef: No.
Champion: No.
Lehman: I don't know...
Pfab: I think there is an extreme time pressure here to make this thing work.
Is that correct?
Lehman: It wouldn't be any point, I mean it wouldn't be any problem putting
them on both. Depending on what happens Monday night.
Vanderhoef: Until we listen to it, I don't want to put anything on...
Pfab: Well, let's reserve a space on it. We can always walk away.
Lehman: What are the time constraints?
Welsh: February 27th there was an administrative rule change affecting eligible
applicants
(end of tape 02-42. Beginning of tape #02-45)
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it's not complete you were still eligible to apply for and receive
Enterprise Zone benefits. February 27th that rule changed. You cannot
begin construction until you receive approval for your Enterprise Zone
benefits otherwise you are no longer eligible for that. So there is mom
of a time constraint now that exists because Emerson Point has been
funded by the State. The State wants to see this move ahead and move
ahead quickly as a demonstration so that other places in the State can
try to model this example. Also, the other two entities Mercy Hospital
and The Heritage Agency have set aside time on their schedules to be
here at your Tuesday Council session. But, I of course, would be here
both Monday and Tuesday if that's how you feel it would best be
served.
Vanderhoef: Mean they don't have anything to present to us on Monday night?
Welsh: I don't know what they have the availability to be here Monday night.
I'm certainly willing to check. But, I know they have scheduled
Tuesday on their agendas.
Vanderhoefi Personally, I will not consider anything for Tuesday night until after we
have had a complete discussion on...
Welsh: Can we do both?
Vanderhoef: ...on Monday night and it may be too soon to assume anything for
Tuesday night. I would guess, and my feeling would be that we would
have a discussion on Monday night and the nearest/soonest time would
be the following meeting. The Tuesday night if we chose on Monday
night to put anything on.
Pfab: I would speak against that. Also is it possible if you could have your
two entities deliver material that would be of importance to making a
decision Tuesday Council as soon as possible so that we would have a
chance to look at it prior to our Monday meeting?
Welsh: We certainly can ask them to supply letters or other information for
your Council packet in advance of your meeting.
Dilkes: Staff is going to need direction from Council in order to formulate the
formal items so my suggestion would be that you would have your
discussion Monday night. If you want to move very quickly you can
always schedule a special meeting.
Champion: We do need to have this discussion on Monday night.
Welsh: Okay.
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O'Donnell: Then let's do it. Monday night.
Lehman: Well, it will go into work session Monday night. That is a positive
reactive I certainly would be willing to call a special meeting based on
that.
Welsh: Okay. Thank you very much.
Pfab: Okay. Does that solve the problem? Are these people available on
Tuesday?
Champion: No, Monday.
Welsh: We'll make our best effort to get Mercy Hospital and The Heritage
Agency here on Monday and I appreciate the special consideration.
Lehman: It's fine to have in the audience, but Monday night's meeting is not a
public meeting from a participation standpoint.
Welsh: That's right.
Lehman: So, they may be here to observe. My sense if that we're not going to
have four or five people speaking to this issue. We'll have a staff report
from City Staff and if you want to represent Emerson Point and be there
to answer questions I think that's fine.
Welsh: Okay. So, there will be an opportunity for dialog on Monday then?
Lehman: I think we certainly could have a Staff member and yourself. But as far
as other public participation that is not going to happen. It's not a
public meeting.
Welsh: Okay.
Lehman: Or not a public participation meeting.
Pfab: One other thing, is it possible that we could put a slot in the meeting for
next Tuesday and then...
Lehman: We just said that if we have an affirmative action on Monday we can
call a special meeting. Which will take care of that.
Kanner: Or I don't think that two weeks down...when is our next meeting?
Karr: June 1 lth.
Pfab: Well, see according to what this person just said that people have made
places on their calendar for our next public meeting.
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Lehman: They can speak during public discussion.
Pfab: Okay. All right.
Welsh: Okay. Thank you.
Lehman: Thanks very much. Any other public discussion?
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ITEM NO. 7 PLANNING AND ZONING MATTERS.
7e. CONSIDER AN ORDINANCE REZONING 18.2 ACRES
FROM LOW DENSITY SINGLE-FAMILY, (RS-5) TO
SENSITIVE AREAS OVERLAY LOW DENSITY SINGLE-
FAMILY (OSA-5) AND A PRELIMINARY SENSITIVE AREAS
DEVELOPMENT PLAN FOR HICKORY HEIGHTS, A 20-LOT
RESIDENTIAL SUBDIVISION LOCATED WEST OF SCOTT
BOULEVARD NEAR ITS INTERSECTION WITH DODGE
STREET. (REZ01-00028/SUB01-00031) (PASS AND ADOPT)
Lehman: Item e: Consider an ordinance rezoning 18.2 acres from Low Density
Single-Family, (RS-5) to Sensitive Areas Overlay Low Density
Single-Family (OSA-5) and a preliminary sensitive areas development
plan for Hickory Heights, a 20-lot residential subdivision located west
of Scott Boulevard near its intersection with Dodge Street. This is
pass and adopt.
O'Donnell: Move adoption.
Vanderhoef: Second.
Lehman: Moved by O'Donnell. Seconded by Vanderhoef. Discussion?
Pfab: Are there parts of this development that have not been submitted to the
City?
Lehman: We are only voting on the part that has been submitted.
Pfab: Yes, but every time we vote on a preliminary the next thing is out we
try to make some changes.
Lehman: We aren't to the preliminary.
Champion: We're not to the preliminary.
Lehman: The item before that. Is there any discussion on item e? Roll call.
Motion carries.
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ITEM NO. 7f Consider a resolution approving the preliminary plat of Hickory
Heights.
Lehman: Item f: consider a resolution approving the preliminary plat of
Hickory Heights.
Champion: Move the resolution.
O'Donnell: Second.
Lehman: Moved by Champion. Seconded by O'Donnell. Discussion?
Pfab: I guess that I would ask the City Attorney what papers are still needed
or the planning and zoning people to finish this up? Are there
documents that have not been submitted and approved at this point?
Dilkes: For this item?
Pfab: Yes.
Dilkes: No.
Pfab: So, everything is in order.
Dilkes: Yep.
Kanner: I think for the preliminary plat and the final plat we need to have some
sort of wording about one. Some sort of signage needed about areas
not to be disturbed. We've been told this will be a complaint
driven...if there is any problems it will have to be complaint driven
and I have a feeling in a few years people will lose track with what's
on deeds and will be digging in areas they shouldn't be. I think we
need to put signs in there and I'm going to be voting "no" on this. I
think we can do a better job in our preliminary plat.
Lehman: Just a point of information, can we legally require that signs be
posted?
Dilkes: I do not believe we have an ordinance requirement that requires signs.
Lehman: I didn't think so. Okay. Any other discussion? Roll call. Motion
carries 5-2, Kanner and Pfab voting in the negative.
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ITEM NO. 8 PUBLIC HEARING ON THE PROPOSED LOWER
MUSCATINE ROAD & HIGHWAY 6 URBAN RENEWAL
PLAN.
Leh Item 8 is a public hearing on the proposed Lower Muscatine Road and
Highway 6 urban renewal plan. Public hearing is open.
Dan Smith: Good evening. My name is Dan Smith. I'm here to represent the Iowa
Chamber of Commerce and if I may, I was going to read a brief
prepared statement. Can it apply to all three of the...
Lehman: Sure.
Smith: ...proposed areas. I appreciate that. At its April 25th meeting the
Chamber of Commerce Board of Directors voted to endorse the Iowa
City's Economic Development Committees' recommendations to
establish three new urban renewal area tax increment financing areas.
Those being the Heinz Road urban renewal area, Lower Muscatine
Road and Highway 6, and the Industrial Park road urban renewal area.
We believe the Committee's recommendations will provide the
necessary strategic and financial framework to promote the attraction of
business and industry to the Iowa City area, as well as support the
expansion of existing businesses in our area. The designation of urban
renewal areas and the prudent use of TIF financing have proven to be
one of the most successful methods of promoting economic vitality.
Having such a long term strategy in place with a focus towards a future
economic health of our community will allow us to capitalize on
opportunities as they arrive and maintain a vital competitive edge in the
competing...new competitive global business environment. I would
like to point out also that all three of these proposals have been voting
unanimously out of the Committee. All three of these proposals are
compliant with the Comprehensive Plan. They meet all planning and
zoning requirements and they meet all proposed land use requirements.
Again, the Chamber of Commeme strongly recommends the City of
Iowa City adopt these three proposed urban renewal districts to recruit
new businesses to our area, helping our existing businesses to grow and
prosper while securing a strategic framework for future stability of our
community. We thank the Council for their consideration on this matter
and the Chamber of Commerce would be more than happy to provide
any assistance as you move along this process. Thank you very much.
Kanner: Dan don't numerous...I've seen numerous articles in referencing studies
about how TIFs and other types of economic support in those fashions
and tax abatements are very low on the list on why companies relocate
or expand. Most likely they would tend to do it without that. Isn't that
the case that you've found?
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Smith: Well, I'd probably refer to the Iowa City development group. They are
the experts on this. However, whether it is low or high on the list
depends from business to business. I would suspect if you look at an
existing business, I would suspect that this would be pretty high on their
list. Obviously Iowa City area offers a variety of competitive
advantages such as an educated workforce. However, when you're
going through your check list as a business and you're trying to
determine what area fits your criteria over the other, having something
like this in place provides the flexibility that may be the turning point in
that negotiation.
Champion: Good answer.
O'Donnell: Very good.
Lehman: Thank you, Dan.
Smith: Thank you.
Lehman: Public hearing is closed.
Karr: Motion to accept correspondence.
O'Donnell: So moved.
Pfab: Second.
Lehman: Moved by O'Donnell, seconded by Pfab to accept correspondence. All
in favor? [All ayes]. Opposed? Motion carries.
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ITEM NO. 9 PUBLIC HEARING ON THE PROPOSED INDUSTRIAL PARK
URBAN RENWAL PLAN.
Lehman: Item 9 is a public hearing on the proposed industrial park urban renewal
plan. Public hearing is open. Almost got me didn't you.
Grimm: Was there any public speaking on that?
Kanner: Come on up if you...
Lehman: You want to speak to it
Grimm: Okay. It won't take more than five minutes either.
Kanner: This is item number nine.
Grimm: My name is Robert Grimm. Lifetime resident. Is it worth it? Look at
your maps back there. Our ancestors maybe somebody must be from
this town. Airport located out there where it wouldn't make no
problem. It's a hazard now. Look at your waste disposal by the Hy-
Vee. Engineers planned that to last about 30 or 40 years. I know it was
built before '47. When I was a kid the town was pretty good to get
around like I said at City Hall you got free water and a urinal. I see
plans where West Lawn up there on the hill was farm ground. Fences
up...it's a fact, it's a fact around the hospital area all farm ground. Look
at your map now. What do you got? You're closed in. Is it worth it?
Landslide wholesale of your property. Some of the richest ground in the
whole world. Out there by Heinz. Farm ground. Okay let's say it this
way. Maybe you can grow eom in Russia some years with the weather
being able to be predicted by long-range (Can't hear). Maybe the next
year China will be able to produce a massive corn crop. Iowa, heck our
ground is all houses. People do we need it?
Lehman: This particular proposal is regarding property that is not farmland.
It's...
Grimm: It was farm ground when I was a kid.
Lehman: But, it is industrial now.
Grimm: Well, I understand but my five minutes to interrupt. But, what I'm
saying is that you're approaching things from a money realistic deal for
the ancestor to...your children, my children are not going to be able to
do it.
Lehman: Thank you. Public hearing is closed. Item number 10.
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Karr: Motion to accept correspondence.
O'Donnell: So moved.
Pfab: Second.
Lehman: It's been motioned by O'Donnell, seconded by Pfab to accept
correspondence. All in favor? [All ayes]. Opposed? Motion carries.
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ITEM NO. 10 PUBLIC HEARING ON THE PROPOSED HEINZ ROAD
URBAN RENEWAL PLAN.
Lehman: Item number 10 is a public hearing on the proposed Heinz Road urban
renewal plan. Public hearing is open. Public hearing is closed. Do we
have...is there a motion to accept correspondence.
Karr: Please.
Vanderhoef: Moved.
Champion: Second.
Lehman: Moved by Vanderhoef, seconded by Champion. All in favor? [All
ayes]. Opposed? Motion carries.
O'Donnell: One out of three isn't bad.
Kanner: Marian are these the same two letters that we're accepting as
correspondence?
Kan': We'll accept all of them together depending on the...if they refer to all
three or we'll separate them. That's why we have separate motions, yes.
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ITEM NO. llb AMENDING THE FY2002 OPERATING BUDGET
CONSIDER A RESOLUTION APPROVING
Lehman: Do we have a motion?
O'Donnell: So moved.
Lehman: Moved by O'Dormell.
Champion: Second
Lehman: Seconded by Champion. Discussion? This is strictly a housekeeping
sort of thing.
Atkins: It's housekeeping, but a very important one.
Lehman: No, no I realize it has to be done, but it's making adjusting entries to
correct the budget. Is that correct?
Atkins: It makes our budget in complete compliance.
Champion:: These are actual expenses?
Atkins: Yes.
Lehman: Other discussion? Roll call. Motion carries.
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ITEM NO. 12 PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND
ESTIMATE OF COST FOR CONSTRUCTION OF THE
NORTHSIDE MARKETPLACE STREETSCAPE PROJECT,
PHASE I, ESTABLISHING AMOUNT OF BID SECURITY TO
ACCOMPANY EACH BID, DIRECTING CITY CLERK TO
PUBLISH ADVERTISEMENT FOR BIDS, AND FIXING TIME
AND PLACE FOR RECEIPT OF BIDS.
a. Public Hearing
Lehman: Item number 12: plans, specifications, form of contact, and estimate
of cost for construction of the Northside Marketplace streetscape
project, Phase I, establishing amount of bid security to accompany
each bid, directing City clerk to publish advertisement for bids, and
fixing time and place for receipt of bids. Estimated cost is
$439,250.00. Public hearing is open.
Mike Carberry: Good evening everyone. Good evening Mr. Mayor, Council
Members. My name is Mike Carberry. I live at 715 North Linn Street
in Iowa City on the north side. I'm here tonight representing the
Northside Neighborhood Association. I would like to read some
prepared comments ifI may. As a member of the Northside
Neighborhood Associate, I've been asked to speak to you in request of
the full support of the proposed Northside Marketplace streetscape
project. The Northside Marketplace is a gateway into our
neighborhood and downtown Iowa City. An area where many
Northside neighbors, visitors, and Iowa City residents go for a unique
shopping and dinning experience along with places of worship nearby.
This project has required many, many hours of public input, discussion
and recommendations, as well as consultant fees have been occurred.
To postpone implementation of this plan would put in danger...would
put it in danger of becoming cancelled permanently and discourage
future public input in community planning. We understand your job is
increasingly difficult in these tight fiscal times; however, we would
like to see this project receive full funding and work begun as soon as
possible. In light of expenditures in downtown and various road
improvement in the outlying areas of town, we would appreciate this
investment in the heart of historic Iowa City. Thank you for your
consideration. The Northside Neighborhood Association.
O'Donnell: Thanks, Mike.
Champion: Thanks, Mike.
Lehman: Thank you, Mike.
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Doug Alberhasky: Hi. Doug Alberhasky with John's Grocery. I'd like to speak to the
Council tonight in hope of your reaffirming your commitment to the
Northside beautification project. The work that has been downtown is
to be commended, but it must be continued. With Hamburg Inn,
Pagliai's, Riverside Theater and John's along with a host of other
businesses. These are some of the businesses that really make Iowa
City truly unique. And they keep people talking about the real
character of our town. When my grandparents opened John's 54 years
ago there were 28 family owned comer groceries in Iowa City. We're
the last one left. If Iowa City lost The Hamburg or John's or any one
of these other businesses our town and a piece of our history would
truly be lost. And at that point we would turn into any other town
U.S.A. otherwise known as Coralville. Sorry. A huge investment has
been made in our downtown, but it still doesn't, I think, hold the
charms it makes it a destination point for people visiting Iowa City.
And it doesn't have the right mix of businesses that make it useful to
our own natives. Our neighborhood does. And we on the Northside
take great pride in this. And I think that our neighborhood will be
strengthened with the construction that has been proposed. It will not
only clean up the entire area, but it will address problems such as
lighting and traffic and it will tie in with the investments made in the
downtown making the whole neighborhood feel like a part of the
downtown and not just a little piece dangling off the edge. The
streetscape improvements should not be put off for a year because for
certain there will be another budget problem next year and it will delay
the project once again. Please help preserve the history of our
neighborhood. And keep our district as beautiful as the rest of the
downtown. Thank you.
Champion: Thank you.
Grimm: A lot of people don't know what some of those old buildings stand for.
Pagliai's. I'm sure it was an (Can't hear) at one time. (Can't hear)
were upstairs. The one right to the east of that was the stables. Grass
Balding Works. Anyone ever hear of that word before? Anyone?
Grass Balding Works? Right next to what would be the Hamburg Irm?
You heard the word Grass? It was a balding company that made old
soap (Can't hear). You could probably get some (Can't hear) Emie.
Go to (Can't hear). Get some plaques on these buildings and designate
what they were. Hamburg Inn was probably an old butcher shop at
one time. Owned by Bolemy's. Good guys. That's about it. I would
get some money for some plaques and find out what some of these old
buildings were for. They're doing it in Dubuque, Galena, everyone
else. What you guys do is.
Kanner: Where the buildings in this area part of our survey that we did? The
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Historic Survey?
Champion: Them were part of it.
Atkins: I thought so.
Champion: They are.
Atkins: Yes, they were.
Lehman: They are? Okay.
Atkins: So you'll have that information when that issue comes to you.
Tony Christner: Council, Mayor my name is Tony Christner. I live at 740 Kirkwood.
Lifelong Iowa City resident. I have a business on the Northside for
about 28 years now called The Headliners. And I'm going to try not to
repeat because you've already heard a lot of the reasons why I think
we need to go ahead with this project. But, I guess I just want to
address some of the objectives I've heard. Excuse me. Regarding the
project - that it's cosmetic or luxury item, not a safety and health
concern. To me it is - I live over there. I walk across those streets and
anybody that's tried to walk across Market and Linn knows you take
your life in your own hands a lot of times. So, we do need it - it is a
safety issue. The lighting - sidewalk lighting - excuse me, is
important. We have a lot of walking traffic over there obviously.
From a standpoint of waiting, I think, you know it's been in the works
three or four years and to me at this point we're at the point where it
could start in July according to the City letter that I got and I'd sure
hate to start over and waste your time and taxpayer time to do it again.
From a dollar standpoint I can't imagine that three years from now it's
going to cost less to do the same project. And according to the letter
the City is planning on doing some storm sewer construction in
conjunction with this so I would assume that now would be the time to
do it anyway. And I just...you know I just would like to also note that
besides the historical value we've got our two one-ways the (Can't
hear) one-ways that run through the Northside that connect with
downtown and we've got Mercy Hospital which adds a lot to that - we
kind of pull that neighborhood into it with us. So, I just urge you to go
ahead and do it now and get it done. Thank you.
Kanner: Excuse me. What business do you own?
Christner: Headliners. It's on North Linn Street across from Hamburg.
Lehman: Thank you. Public hearing is closed. Do we have a motion?
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Pfab: I so moved.
Karr: Can I have a motion to accept correspondence.
O'Donnell: So moved.
Champion: Second.
Lehman: Moved by O'Donnell, seconded by Champion to accept
correspondence. All in favor? [All ayes]. Opposed? Now a motion to
consider a resolution.
b. Consider a resolution approving
Pfab: I would move we do it.
Lehman: Moved by Pfab.
Kanner: Second.
Lehman: Seconded by Kanner. Discussion?
Kanner: I spend quite a bit of time in the neighborhood there and the Northside
marketplace. And I'm amazed at how walkable it is even with the
one-way streets and I think these improvements will only make it
better. Maybe I'm a little faster I don't think it's that dangerous going
across Market Street and I feel there is somewhat ora connection - it
could be better. I would like to see a two-way someday. But, I think
these improvements which are going to put out comers farther out into
the street are going to make it even more of a livable, walkable
community - vibrant community. I think it's going to be good for
everybody and that's why I'm going to be voting for this.
Pfab: I think it's one of the nicer neighborhoods, a working neighborhoods
in the entire City.
Champion: Yeah. That's true.
Grimm: Your first fire station was in that neighborhood.
Lehman: Other discussion?
Grimm: It was a horse drawn fire station.
O'Donnell: Well, I don't think there is anybody here that doesn't think this is a
very worthy project. But, as we've heard earlier the Senior City is
hurting for funding. There is many, many things to do with not much
money and this is a great project and...but I think it can wait. So I'll
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be voting no. And I do think Coralville is fairly proud of everything
they've done as we are in Iowa City.
Lehman: I happen to feel - I think it's a wonderful project and I truly would
love to see it happen. And it's going to happen. And I will support it
when the contract comes back. But, I do believe that the timing is
such that from a financial standpoint we would have been better
advised to have done it in a year or two. Obviously that isn't going to
happen. We're going to do it right away when the contract comes
back I'll be a good soldier and play with the rest of the team.
Champion: Good.
Pfab: In the meantime you'll vote for it.
Kanner: Well, I think this is the kind of economic development that suits our
City and brings in more dollars to build on that.
Lehman: Well, I don't think it comes close to some other kinds, but this is a
beautiful project and it's a great neighborhood.
Vanderhoef: It is and we will get this project done, but for financial reasons at this
point in time I can't support it.
Grimm: For financial masons I think you should.
Lehman: Public heating is over.
Grimm: Okay, but just for one thing see if you can get some plaques on some
of these buildings.
Lehman: I think that's a great idea. Roll call. Motion carries 4-3. Kanner.
Pardon me. Vanderhoef, Lehman and O'Donnell voting in the
negative. And I have been requested to take a break until we will
resume at about 25 after.
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ITEM NO. 14 CONSIDER AN ORDINANCE AMENDING TITLE 10,
ENTITLED "USE OF PUBLIC WAYS AND PROPERTY," BY
ADDING CHAPTER 10, ENTITLED "CHUTES AND VAULTS
WITHIN THE PUBLIC RIGHT-OF-WAY" TO ESTABLISH A
SYSTEM TO REGULATE THE USE OF CHUTES AND
VAULTS IN THE PUBLIC RIGHT-OF-WAY. (SECOND
CONSIDERATION)
Lehman: Item 14 deals with an item with which Vanderhoef, Champion and
myself have a conflict so we will be excuse ourselves.
Karr: And the temporary Mayor Pro Tem elected last time was Council
Member Pfab.
O'Donnell: And that's fine let's just continue.
Karr: And we are that's why I'm making the announcement so Council
Member Pfab has...
O'Donnell: It was very painful last time that's why...
Kart: I'm sorry.
Pfab: I guess I better hook this thing up. Okay. Item number 14 Consider
an ordinance amending Title 10 entitles "Use of Public Ways and
Property," by adding Chapter 10, entitled "Chutes and Vaults Within
the Public Right-Of-Way" to establish a system to regulate the use of
chutes and vaults in the public right-of-way. Second consideration.
O'Donnell: Move second consideration.
Kanner: Second. I had a question. Eleanor, are you going to respond to the
remarks from last night?
Dilkes: Yeah. I made one...
Pfab: Moved and second. Okay. Discussion.
Dilkes: I made one change in light of the discussion that we had last time and
that is to the temporary use section. And what I ended up doing is just
including the general statement that the person using the chute or vault
must acknowledge that we can't convey a permanent use of the right-
of-way for private purposes. I looked at the agreements that we
typically use and we have a number of statements in our standard
agreements that relate to that provision and I started including them
all. And then I decided that I would take them all out and give us
some flexibility in negotiating them -just working from that basic
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premise. I think we - the statement - the specific statement I took out
said that there would be - there had to be a provision in each
agreement saying that the agreement could be terminated without
cause on 30 days notice. I looked at Mr. Moen's agreement. It, for
instance, provides for a 90 day notice period. It...that's an example
where, depending on the use being made, a longer notice period might
be appropriate or a shorter one might be appropriate. So, I just
decided we needed that flexibility particularly since we're going to be
dealing with people who been in these places for a long time.
Wilburn: Sounds reasonable.
Pfab: Any other diseussion? I guess ready for roll calk 4 to 0. [Motion
carries]
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ITEM NO. 16 CONSIDER A RESOLUTION ADOPTING IOWA CITY'S FY03
ANNUAL ACTION PLAN, THAT IS PART OF IOWA CITY'S
2001-2006 CONSOLIDATED PLAN (CITY STEPS) AS
AMENDED, AND AUTHORIZING THE CITY MANAGER TO
SUBMIT SAID PLAN AND ALL NECESSARY
CERTIFICATIONS TO THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT, AND
DESIGNATING THE CITY MANAGER AS THE
AUTHORIZED CHIEF EXECUTIVE OFFICER FOR THE
CONSOLIDATED PLAN.
Wilbum: This next item I will be abstaining due to a conflict of interest. I am
employed by an applicant.
Lehman: Okay. Item 16 Consider aresolution adopting IowaCity's FY03
Annual Action Plan, that is part of Iowa City's 2001 - 2006
Consolidated Plan (City Steps) as amended, and authorizing the City
Manager to submit said plan and all necessary certifications to the U.S.
Department of Housing and Urban Development, and designating the
City Manager as the authorized Chief Executive Officer for the
Consolidated Plan. Do we have a motion?
Vanderhoefi Move to adopt.
O'Donnell: Second.
Lehman: Moved by Vanderhoef, seconded by O'Donnell. Discussion?
Vanderhoef: I would like to pull for a separate consideration the housing project of
Garden Prairie.
Dilkes: I think we'll just do it by amendment.
Vanderhoefi Okay. I'll go with amendment.
Dilkes: I'm assuming that's what you're looking at doing. Making an
amendment to plan. I think we can do it by amendment.
Vanderhoef: Yes. Alrighty. Thank you. Two amendments that I would like to be
considered. The first one is that the terms of the loan for this project
will be for 3% interest rather than 1% as was listed in the proposal.
The second one that I would propose is that the length of the loan is 30
years. The proposal says the affordability for this housing would be
for 20 years. I want the affordability to be for 30 years. The same as
the length of the loan.
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Kanner: Second.
Lehman: Alright. We have an amendment to change the interest rate on the loan
from 1 to 3 pement and the affordability requirement to be extended to
30 years from the 20 years as it presently appears. Seconded by
Steven. Discussion of the amendment?
Pfab: I would ask Councilman Vanderhoefwhy...what are the reasons for
doing this?
Vanderhoef: As far as the interest is concerned, these are public dollars being
loaned to private enterprise. These public dollars come back to our
funding for more housing projects and I think it is only fair to bring
back more dollars even though it's a very long time before they come
back in. But, in the end we will be able to fund more projects.
Pfab: You'll be able to fund more projects, but at the same time you're going
to make...cause the rents to be higher for the units that are there.
Vanderhoefi Well, as I understand it, the Federal guidelines say that we must meet
fair market value of rents in our area.
Pfab: Okay.
Vanderhoef: And the proposal as I saw it was already at maximum of fair market
value so the rent cannot go up even though we have added the interest.
Pfab: I would like to have somebody speak to that.
Vanderhoef: I think Mr. Nasby can speak for us.
Steve Nasby: The Home Program, which is the Federal program we're funding this
project with, essential caps the rents at HUD's fair market rems which
I believe are, I think, $828 on a three bedroom and $979 on a four
bedroom which included utilities. So, they would be capped at that
amount regardless of the loan terms. It would, you know, that service
would affect cash flow, but the rents could not exceed the FMRs.
O'Donnell: Are we comparing apples and apples here or is there like a new
project? Are we talking same square footage?
Nasby: With?
O'Donnell: When you cap the rent?
Nasby: Well, they didn't submit building plans. They're for 3- or 4-bedroom
units to be in duplex style. I don't believe there were square footage in
the application and there weren't building plans, but the rents are
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capped. So...
O'Donnell: Okay.
Lehman: But...well, I guess I need to understand this better.
Nasby: But, that would go to construction cost too versus an operational cost
which debt services.
Lehman: But, the present...the cap for rents as it is proposed is $828 and $979
and that rental cap doesn't change.
Nasby: HUD adjusts it annually, but it will be in place.
Lehman: But, for purposes of our discussion this evening. If we're talking
about an interest rate of 3 instead of 1 percent, the rental caps remain
the same.
Nasby: Correct.
Lehman: We do not know what the rent is or is proposed on these projects. Is
that correct?
Nasby: They had the rent terms in the application which I believe were fight at
the fair market rent levels is what they were anticipating charging.
Lehman: Okay.
Nasby: So, but the home regs would require them to keep that at the 20 years
or 30 years as Dee had proposed.
Champion: Dee, the question...is this going to be a general policy decision. I
mean is this for this specific project or are you thinking of all home
fund money that go for for-profit groups?
Vanderhoef: Thanks for asking because at Council...
Champion: Because I think that was to be clarified.
Vanderhoefi Okay. What I would like to put on a work session for Council is to
consider a policy that would be a percent that would float to what
market rent.., not rent.., percent of interest that would float depending
on what market interest is at the time that the loan is given. And we
could discuss this (Can't hear) if Council would like to set a policy in
particular for our housing projects for-profit organizations.
O'Donnell: So, you're talking we would be several points below prime rate.
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Pfab: Okay, but at this point you are wanting to change the rules now in the
middle.
Vanderhoef: No.
O'Dormell: I think the...
Vanderhoef: It says right in the book that these are negotiable with the applicant. In
our City Steps book it says, "terms are negotiable."
Pfab: Well, the CBDG Group, did they not take into consideration the study
of these. Did not the staffstudy these and offer their approval on it?
Vanderhoef: I have no idea.
Lehman: Steve, let Steve address that.
Nasby: The Commission did look at the application and study it. Because
there are no other funding sources committed to the project at this
point in time it's hard to come up with a projected cash flow for these
units since we don't know what other forms the other debt is going to
take. Is it going to be tax credit, private debt, state DD funds so the
Commission did the best they could with reading through the
application as it was presented. Now they did make a recommendation
to you and, Dee is right, we always reserve the right to negotiate with
rates and terms which would typically do at the contract phase.
Lehman: Was the interest rate discussed?
Nasby: I don't believe so.
Pfab: It looks to me the possibility of changing the rules kind of halfway
through the game.
Vanderhoefi It isn't changing the rules.
Pfab: Well, it wasn't brought out in the other hearings and now...
Champion: We have the final say.
Pfab: Did you...does anybody else have anything to say on it?
Lehman: Well, we have the applicant here.
Champion: Yeah.
Lehman: I'd like to know what 2% is going to do to the project.
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Bob Bums: My name is Bob Bums. 319 East Washington Street. I am here
tonight representing the applicant/owner. The 3% interest rate would
increase the rents by $40 per month per tenant for the life of the loan.
Vanderhoef: And still not go over the cap?
Burns: Well, it becomes then it becomes and issue of feasibility. If we aren't
able to assembly financing from other sources that would keep the
rents at the fair market rent or less then we would abandon the project.
Vanderhoef: There's always that possibility. As I...
Bums: That's not our decision. That's the investment partners' decision.
Vanderhoefi As I understand it adding two percent onto the loan that you're talking
about is about $300 a month.
Lehman: Actually 2% on $300,000 is $6,000 a year. If you had the full amount
it would obviously that decreases as the note is paid off. But, the
initial.., how many units are we talking about, Bob?
Bums: It depends on the price of the land. Ten units to 20 units. Ten
dwelling units to 20 dwelling units.
Pfab: Is your goal to build a certain number of units or to invest the money
as far as it will go?
Bums: Well we're going to stretch it as far as it will go. Since we had
requested $500,000. We've only been funded with $300,000. So,
we're going to have to scale back the project size in the first place.
Pfab: So, okay. At this point, is it my understanding, that the most difficult
part of this project is to have the funds available when the ground or
lots is available to build?
Bums: The most difficult part of this project is to have land available to
submit an application to the State. And that's what this...the money
from the City will help us to...we'll be able to acquire sites and have
them ready for the application.
Pfab: So, this money is actually going into...
Bums: Land acquisition.
Pfab: ...being able to buy land when it becomes available on the market, is
that right?
Bums: That's correct.
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Pfab: Okay. As of now?
Bums: As of as soon after July 1 st as the...
Pfab: Funds are available.
Bums: July 1st the funds would be available. Then we would start acquiring
sites. And then the tax credit application is due in November to the
Iowa Finance Authority. And the funds would be awarded in March.
But, we can't go ahead with an application for tax credits without a
site. That's what the City funds would be used for.
Pfab: Okay. So the chronology of the thing first of all you have to have the
ftmds to buy the land.
Bums: Yes.
Pfab: And then after that then you can put together an application? Or you
can apply to the State for tax credits? Is that right?
Bums: Yes.
Pfab: So, without...if you...without the funds to buy the land, the project
may not ever materialize?
Bums: Without the City's funds the project would not go ahead.
Pfab: Okay.
Bums: These loans are...typically home loans are financed by State and local
agencies across the State at 1%. And when you think about it, it's not
really too unrealistic to do it that way. Because a 3% loan is actually
higher than a bank loan.
Lehman: How do you figure that?
Bums: Because the City's cost of funds is 0%.
Lehman: Well, no, no. But, a bank loan is a lot more than 3%.
Bums: I'm talking to you. You're in terms of the City's retum. You're cost
of funds is 0%. You're marking it up 3%. A bank's cost of funds are
4-5% on deposits and then they have a spread and then that's what
their interest rate is that the rest of us pay.
Kanner: Steve, what's the
[end of side 1, tape #02-45]
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Vanderhoef: You're stating that like this City money. This is Federal government
tax dollars that are being returned to the City and we are the keepers of
that money and try to put it out to make it stretch as far as it will go.
So, it's not that the City is making money off of you for the interest.
We're looking at making any kind of addition to the money that we get
from the Federal government which is all of our tax monies.
Bums: But, as far as the Federal government's concerned they would...it
could be zero interest because they're giving it to you at zero interest.
You could grant the money.
Vanderhoef: Absolutely.
Bums: And there would be no loan and no obligation to pay it.
Vanderhoef: I understand that. And we're trying to make it better for our City.
Bums: We had suggested the 1% interest rate which would make the project
feasible and the 3% just increases the costs in return...for repaying the
loan.
Vanderhoef: Well, it would appear that you are already at the cap for the project for
the rents, so it's not going to increase the rents because they can't go
above the Federal guidelines on that. So, it has to be a piece of
whether it's part of the development fee, part of the land cost,
wherever it comes out of this is what we are asking.
Bums: With all due respect, if the project becomes infeasible because the
rents increase, the project will be abandoned.
Vanderhoef: You keep saying the rents increase and I'm saying that you already are
at the top of the rent cap. So, the rents aren't going to increase above
the cap. They can't.
Bums: We have to...Let me just put it another way. We have to arrange the
financing so that we can keep the rents at the cap.
Vanderhoefi That's right.
Bums: If you require us to have a 3% interest rate it's going to raise the rents
$40 a month which would raise it from $695 to $735 for a three
bedroom.
Lehman: Which is still well under the cap. Is that correct? '
Bums: Well, if you add in the utility allowance, no it wouldn't be.
Lehman:: Oh, okay.
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Bums: That' s the difference.
Pfab: How do these compare with other rents now out in the market?
Bums: That's a good question because unfortunately the application uses a
figure from say an average rent in Iowa City and an average rent for a
3-bedroom apartment includes any three bedroom apartment in town.
So, after we heard that question we went back to Casey Cook, a local
appraiser, and asked him to give us comparable rems in Iowa City for
duplexes, townhouses which is what these will be. And he gave
information today for new construction duplexes the rents are ranging
from $1200 to $1400 a month.
Pfab: So, you're saying comparable units that would not be built by you
would at least for $1200 to $1400 a month. Is that you saying?
Bums: That's what the market is right now. Other market rate rental units,
and these are real figures that they have in their database, $1200 to
$1400 a month. So our rent would be at $695 with a 1% loan.
Pfab: Is this...do you have any facts to back that up?
Bums: I have a fax from Casey Cook.
Vanderhoef: The $695 is not including utilities though. Is that correct?
Bums: That's my understanding. Yes.
Vanderhoef: Okay. So, by the time you add it in because the Federal guidelines say
that the cap includes the utilities, the $695 is not the full price of what
will be charged to the person who moves in there. Because you'll
have to add the utilities on top of that. Can you give me another figure
please. If you were to take the number of bedrooms and divide it into
your cost can you tell me what is would cost you to build per
bedroom?
Bums: Let me address construction costs as she's looking that up. The
number I'm going to give you is the worst case scenario which is per
dwelling trait is $185,000 a unit. That's based on land costs at $50,000
a dwelling unit. $50,0000 a dwelling unit or a $100,000 a duplex lot.
We hope to be able to buy lots at $20,000 a dwelling unit which would
lower the project costs...dwelling unit costs from $185,000 to
$155,000 and. So the costs that we're going to give you here in just a
second reflects the high cost of land, but there are other issues that
impact our costs that I want you to be aware of because this is how we
have structured this project. First of all wages. We pay higher wages
than the typical construction contract is paid in Iowa City. Not only do
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we pay these wages, they are higher wages with benefits. And we
require every subcontractor to submit weekly payroll schedules for
their employees.
O'Donnell: Are you required to do that?
Burns: Yes.
O'Donnell: Okay.
Bums: And then additionally, we do interviews in the field to be sure that the
workman...the worker is receiving those wages. So, that's part of the
Davis-Bacon role and if you look at the Davis-Bacon role that requires
higher wages than are normally paid in Iowa City. Plus
we... additional costs we... that increase the cost we use high energy
efficient furnaces and air conditioning and extra insulation higher than
what's normally required.
O'Donnell: Is that also required, Bob?
Bums: No.
O'Donnell: It's not?
Bums: No. But, it's an increase in the cost. That's for sure.
O'Donnell: I understand.
Pfab: So, why do you do that then?
Bums: To make them higher energy efficient.
Pfab: In other words the people that live there would expect to pay lower
utility bills?
Bums: Yes.
Pfab: Okay.
Bums: And then additional costs we have to do a site assessment and
make...take remedial action for any archeological, historical, or
environmental issue that we find on a site. And they happen.
Vanderhoef: Irvin, the tenant is not paying the utility bill. It's all wrapped into the
rent. So, when you say does it save on their utility bill, their utility bill
is set in their rent. So, it has nothing to do with what they pay out of
pocket.
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Burns: In all due respect...
Vanderhoef: Whether it goes up or down.
Pfab: I don't think that this is part of this unit...
Bums: That's not the way it works. The rent that we are using is for rent.
The utility allowance is an average figure that is deducted from the fair
market rent to come up with the rent that the tenant pays.
Champion: That's what Dee said.
Bums: But, the tenant has to pay their own utilities. The utilities are in the
tenants name so that if the tenant uses more gas and electricity and
water and sewer they have to pay a higher rate.
Pfab: So, what utilities does the tenant pay?
Bums: They pay gas and electricity, water, sewer.
Vanderhoefi If they go over.
Pfab: So, in other words it's just the same as if they either owned a home or
they were a renter out in the commercial market?
Burns: That's correct.
Pfab: Okay. So, okay. Now what I'm trying to figure out here is you had to
make a guess as to what this project is going to cost, basically, an
educated guess or projection.
Burns: I'd say rather than guess...
Pfab: So, you have ....
Bums: Historical data.
Pfab: So, you have...you shoot at something and you hope you get better
than that. Alright. Suppose your costs are higher, what...how will
you work with the fact that your land costs, your construction costs or
whatever come in lower. What will you do with the extra money?
Bums: If it comes in higher?
Pfab: No.
Bums: If it comes in lower?
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Pfab: Yeah, if it comes in lower. Does that go in your pocket?
Bums: No.
Pfab: Where does it go?
Burns: It reduces the loan amount.
Pfab: Reduces the loan amount?
Bums: Yes. And it reduces the rents.
Pfab: Okay. Does it have anything to do with how many units you can
build?
Bums: Well, it depends on how much we save. If we save enough to build
another unit, we'd build another unit. But, if it's less than another
unit, we would reduce the loan amount that we have and then usually
we would reduce the loan that has the highest interest rate and that
would reduce the rents.
Karmer: Was that in your application that you would reduce the rents in the
way you described?
Bums: In terms of how we just described it?
Kanner: You just described to Irvin's question?
Bums: ! don't know if whether they specifically asked for that, but that's the
way we would do it.
Kanner: I mean I think that would have been a thing in your favor that you
would have written down that you'll reduce rents accordingly. I had a
question, Irvin if you were done.
Pfab: Go ahead.
Kanner: I had a question to Steve. You could stay there. I had a question for
Steve. My understanding from what I'm hearing is that the rent with
the 1% will be at the maximum muount basically.
Nasby: That's the way it was stated in the application.
Karmer: That's the way it's stated in the application. If we pass this
amendment to go to 3% and Robert and his company comes back to us
and says we can't do the project, could you come back to us and say
do you want to negotiate?
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Nasby: As I indicated to Council earlier we typically do the negotiations on
the terms of the loan and the length and the rate at the time of contract.
And we have gone back and looked at that. That's something we
could certainly do is amend the contract once we've got all the final
numbers if that was feasible or necessary.
Pfab: When you negotiate, whose position do you take?
Nasby: The City's.
Pfab: Okay. So, in other words, you're trying...if the facts come in better
than his worst case scenario which he has to operate under, you bring
that savings back to the City or you get more units. Is that a simple
way to say it?
Nasby: Until all the costs are known we don't know how many units they're
going to build because we don't know what other funding they're
going to get. Then we'll try to work out the best deal we could for the
City.
Pfab: And the City...and one of the best deals for the City is to get more
units if you have the money to do it.
Nasby: Sure, if his costs come in lower and he can build more units...
Pfab: And he would agree to do that?
Burns: Yes.
Pfab: Okay.
Kanner: Irvin, I think that you're getting into some things slightly different.
I'm talking about the initial, wait Steve I've still got another question.
I'm talking about the initial 3%. If we pass the amendment that's what
we would like to get and if Mr. Bums says no we can't do it, I'd
assume we'd hear back from Steve and say do you want to change
that. He'd come back to City Council.
Nasby: We're kind of talking about two different things. One is construction
costs and number of units.
Karmer: Yeah.
Nasby: The other one is the debt service on the loan which is an operational
cost. The two are roughly related, but I think we're going down two
different tracks here.
Kauner: Right, I'm talking about the 3% on the operational...the loan that
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we're giving out. So, if we direct you to go for 3%, you'll go for 3%
and if Mr. Bums comes back and says no I can't do it, I assume we
would hear from you and say do you want to change your mind
Council and go with a lower rate.
Nasby: They can ask us to readjust the terms of loan or loan agreement at any
point in time which then I'd come ask you.
Kanner: Yeah, so we can do that. The other question I had is do you have any
sense of across the United States what cities are charging for-profits
organizations such as Mr. Bums and these type of things.
Nasby: Cities are all over the board. It depends on the city. Waterloo spends
a lot of their money - CBDG Home Money tearing down dilapidated
units. We...
Kanner: No, but for a similar project.
Nasby: No, I'm just saying so that money is in the form of a grant because
they're not really gaining anything out of that funding. So, they give
them X number of dollars to demo some units and then maybe build
something in its place. So the dollars they give them is for demolition
are grant because it didn't do anything for the project in particular.
Vanderhoef: And that might be blighted, so it's a benefit to the City to get that land
cleared.
Nasby: Sure, there may be many different instances.
Kanner: But, my question is for a similar type of project, and I'm sure that
there are scores of these across the country, do you have a sense of
what the rate might be for home loans.
Nasby: They're all over the board. The highest amount typically would be
whatever the Federal applicable rate is due to some of the regulations
and combining with tax credits in some instances they have to charge
the applicable Federal rate which is probably in the neighborhood of 6
or 7 pement. So, you probably have those on the high end and would
have communities just giving out right grants on the low end. Without
surveying everyone I couldn't answer the question.
Bums: I can answer it. The Federal applicable rate is only used in a specific
type of project that where the owner and the developer elect not to take
the home loan out of eligible basis for purposes of the tax credit. Now
I know that's a lot of technical jargon, but it's used very rarely. For
this type of project that I'm proposing to you tonight to vote on, the
typical loan across this State and all the other states is 1%. This is a
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business that we have been doing for 15 years and we know what these
rates are going for. We have comparisons. One percent is the typical
loan. And one of the reasons is is that it can't be a grant because
this...that's not permitted for a tax credit project. It has to be a loan,
but we try to keep the loan as Iow as possible - the loan interest rate so
that we can keep the rents affordable. When we go to the Iowa
Finance Authority to submit the application to them and for State
Home Phones - State Home Funds - it's a joint application. We
will...there we'll have to lower the rents even farther for their
application.
Karmer: Over the life of this project, what's your estimated rate of return - your
profit for you and your investors? The average?
Bums: The...let me answer that question. The affordability period that we
have in the Performa was for 20 years. We're willing to extend the
affordability period to 30 years. But whether it's 30 years or 20 years
it has to stay in compliance during that time period. It has to be at
these rents and at these affordable rents. But, the tax credit is
accelerated and is only received by the investment parmer in the first
10 years. So the tax credit only comes in the first 10 years. The
affordability period goes to either 20 or 30. Now if you look at the
way...now that interest rate, the return the way the City calculates it
with their analysis, the return in the first 10 years is about 16%. It is
16% plus. And then at the end in year 11, it drops down to about 2%.
Now the way every other financial analyst would look at this project in
the first 10 years including the investment partner, the actual return in
those first 10 years is actually 10.41% and I'm not going to try to get
into the explanation of why the City's figure is 16% and the investor is
actually looking at it as a 10.41%. Anyway, whatever figure you want
to choose, it's only in those first 10 years. And that's the incentive.
Kanner: But, what is your., .the average return over the life of the project.
Bums: For the investor...this is a pretty average return. I just gave you...
Kanner: So, you're saying that it's 10%?
Burns: Ten percent for the first 10 years and then it drops off to less than 2%
for the next 20.
Karmer: Right. Give me what that averages out to over the whole 30 years.
Your rate of return.
Bums: I don't know. I can't give that to you off the top of my head.
O'Donnell: It depends on whether you start at 16% or 10%.
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Bums: That's right.
Kanner: Well, with his figuring. I'm asking what his figuring.
Pfab: Okay.
Bums: But, it's the incentive...the return to the investor is the incentive for
them to write a check at the end of construction cash for $775,000
which goes for construction of the project. We don't see that as any
different than, let's say for instance when you as an individual buy a
single family home and you get a bank loan and you pay interest to the
bank every year you deduct that interest from your personal income
tax and it reduces the amount of income tax that you pay. That's an
incentive for people to buy a single family home. Well, that's why we
look at the same incentive for the tax credit. It's there as an incentive
to build affordable rental houses for families which is the highest
priority of need in Iowa City for low income families.
Pfab: How many other people in Iowa City are doing this?
Bums: Nobody. You had one out of town developer submit an application in
this year and it was rejected.
Pfab: So...
Bums: That's...so in terms of utilization of the tax credit, Iowa City's
been...hasn't had its share.
Pfab: Why aren't more people doing what you're doing? Because if you're
making that much money.
Bums: They've certainly had the opportunity to do it. It's complicated.
Pfab: Okay. If you're making that much money, why aren't more people
doing it?
Bums: It's complicated and it's risky.
Pfab: So, you...I don't know.
Kanner: People are doing it all over the country and they're making money.
And I think the question is we're spending public money - it doesn't
matter if it's coming from the Feds - it's public money we control and
we're here to help the public good. Now, the public good that we get
in return is subsidized housing.
Pfab: Affordable housing.
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Kanner: We also get perhaps development in that we have people working.
That's another side effect. The question is how much do we subsidize
a profit in this case. And I think if we raise it from 1 to 3 percent,
rents do not change and they'd have to take it out of their profit a little
bit. And I think that's acceptable in my mind.
Pfab: Okay. What if they come back and said well we've got other places to
go?
Kanner: If they come back and say that it's not going to work at 3% then I
think that we look at it at that point and see if we want to change our
mind. I think that right now 3% seems a reasonable proposition.
Pfab: How many low-income housing, that we're so desperate for, how
many were built last year in Iowa City? How many units?
Kanner: Maybe Steve could answer that. I don't have that figure.
Pfab: And if he says it won't work, then what do you got? Of course we're
not in that much.
Champion: You're shouting in my ear, Irvin. Please lower your voice.
Pfab: Okay.
Lehman: Do you have any more questions for Mr. Bums?
Champion: I have a question.
Lehman: Go ahead.
Champion: I know that investors do this - invest in this - for tax credits. Is there
any actual private money going into this?
Bums: The partners contribute $775,000 in cash and then there's a private
loan of $185,000. And I'm talking about the figures based on our
application which was for the larger amount.
O'Donnell: Ten percent is a really good return, Bob. It's really good. You're not
going to get that on a CD anywhere.
Lehman: It depends on the rate.
O'Donnell: Well that's tree, Emie, but you they may even get that in the stock
market.
Bums: Let me explain the risks. If the project has to be limited to rental to
qualify tenants and it's not.
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O'Donnell: But you've heard over and over here again there's a...
Burns: There's a recapture. There's a recapture and although there's probably
maybe only - there's been as many as 120 national corporations
investing in these types of credits across the country. Now it's
reduced to maybe 40. Some of the top investors are the Fannie May,
Freddie Mac and national banks. Fortunately, we have interests at the
local level in Iowa City both the corporate and financial level to invest
in this project. So, that's another opportunity to keep this local. And I
want to reiterate that you're not voting on whether the rents are....I
think you're misunderstanding what I'm trying to say is that the rents
will have to go up by $40 a month per dwelling unit and if that makes
the project infeasible, then it will be abandoned. And it won't be
my...I can't deliver a project to an investor that is infeasible.
Lehman: Okay. A little more and then we're going to discuss it among
ourselves.
Alaina Welsh: Sure.
Lehman: Go ahead.
Welsh: I'm still Alaina Welsh. Still from Bums & Bums. I just had a couple
of quick comments as I was sitting there. One is I have the answer
regarding the cost per bedroom. The total cost per bedroom - in the
worst case scenario that's if land costs $50,000 a trait - which there are
lots available for that much in Iowa City.
Champion: I can guarantee you they there.
Lehman: But, not for duplexes. We're talking duplexes. Go ahead.
Welsh: That number - that cost per bedroom in worst case scenario is $58,000
- approximately $58,000. The other thing that I wanted to mention
quickly is that with your proposal the 3% interest rate that is reflected
as an operating cost. The only source of revenue for covering
operating costs are rents. If we reevaluate this and we are in fact at the
FMR rent level and cannot increase rents any more we will have to
reevaluate other operating expenses. And I'm wondering - I'm sitting
here thinking - how do we still work to try to provide affordable
family housing in Iowa City. Something that people have been trying
to do for a decade here. We haven't had any new affordable family
housing in almost a decade. Does that mean we skimp on
maintenance, do we put less in the reserve account, do I pay our site
manager less, do we pay her a lower hourly rate to do the same job?
Where else do I cut that operating budget to pay the City back more?
We laid all of our costs out there. We laid out there from, like Bob
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said, 15 years experience of what it takes to operate these projects and
a very, very educated guess on how much its going to cost to develop a
project like this in Iowa City. We see all the costs. Maybe you have a
suggestion on somewhere in our operating budget that you think we're
too fat. That we're a little too flush. I think we're operating on a
shoestring budget as it is, and I'm concerned that upon reevaluation
that we may not be able to do this at 3% and I'm worried that another
year will go by without the opportunity for family housing once again
in Iowa City. I don't know if you have any suggestions. I heard you
mention development - are you suggestion that I pay the debt service
on the project. That doesn't seem a reasonable explanation.
Vanderhoefi The management and the profit piece of it is one piece that is always
looked at when it's in a private.
Bums: No in this project because the tax credits are earned as part of the
development process. They're not an operating...they don't affect
operating costs at all. They just won't invest in the project. That's
what I'm trying to say - it won't go ahead. The only place that the
revenue can come from is on the operation side and if it's not there
because the rents - we're not going to cut operating costs to pay a
higher debt service. We just won't do the project because we don't
want to strain the operating budget. We have to...we're not going to
have a zero management fee. It would be disastrous. You don't want
a project that's not operating properly.
O'Donnell: At what point in time, Bob, can you sell these properties? Or can you?
Bums: At the end of the compliance period.
O'Donnell: At the end of 30 years.
Bums: At the end of the compliance period, yes.
Welsh: In some cases it's 50 years. There are some properties at 50, some at
20.
O'Donnell: At what point in time could you sell this project?
Bums: At the end of the compliance period which is 20 years or 30 years.
O'Donnell: That's what I'm asking you - 20 years?
Bums: Twenty years is what we have in the application. I just said to you
that we'd be willing to extend the affordability period to 30 years, but
we ask you to keep the interest rate at 1%.
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Welsh: Another point regarding selling Garden Prairie is that we proposed
doing tenant ownership for this project. So they'd actually be sold at a
reduced cost to the tenants in the building. And we would set up, at
our expense, a tenant ownership program to help them become home
owners and get out of Section 8 and the subsidy program all together.
So, we wouldn't actually be - in a lot of times the way that's
structured it's a substantial reduced sale price.
Pfab: I have a question for you, Alaina. How many people want to buy a
duplex in a complex?
Welsh: In Iowa City?
Bums: These are going to be scattered sites.
Pfab: They're not in one unit - they're not...Okay.
Welsh: No. We're hoping to get scattered sites to integrate it throughout the
City. And part of that also lends itself to the increased costs. As we
try to integrate them into communities we need to design them in a
way that fits the neighborhood we're planning to put them in. We can
- we'd be skimping on - you know exterior amenities and things like
that.
Pfab: So, if you put this project together and I drive around town, will I be
able to tell which are your projects?
Welsh: Nope.
Pfab: So, you're working to integrate these people into the community?
Bums: That's correct.
Lehman: Alright. Any other discussion on the part of Council.
Grimm: Yes, I think Mr. Bums should be given gratitude for his efforts and his
knowledge and skills to be able to (Can't hear). My name's Robert.
I'm sure Mr. Bums knows as an architect funding for a project of this
magnitude is usually done all before hand. I'm scared - this is new to
me right now - I'm scared that you're going to be caught maybe with
some money on the table that people won't be able to be even in the
houses. I guess, Bob, that your projects takes three years to complete?
Four at the most? (Can't hear)
Bums: A year and a half.
Grimm: A year and a half. Utilities, streets and everything? A year and a half.
Well, that sounds pretty good. What guarantee will you have if the
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economy went bad and then they have a loan on this for you -
taxpayers' money and they can't be.
Welsh: If the economy goes bad there's a higher chance there will be more
people needing that affordable family housing.
Grimm: Yes, but do you got a contractor with a lean on you and everything
else. That's why I say this financing for the magnitude business that
you're playing around has to be done all beforehand.
Dilkes: Ernie, we can't have people talking like this. We can't pick it up on
the...
Lehman: Alright.
Grimm: I understand that, but thanks.
Lehman: Okay. Let me just say that the City's portion of the financing on this
project amounts to 16.67% of the project. That's - $300,000 is 16 2/3
pement of one million eight. In the total scheme of things this is a
small part of the total project. Obviously, there is a bank loan for
$185,000, there is a tax credit for $775,000. So the amount that we're
talking about here is basically 16 2/3 percent of the project is this loan.
So, it's not as if we're talking about, you know, a total financing
package. Now, I guess the question for us is - this money does get
paid back to our Housing Authority. I suspect that's the right
terminology and then will be reinvested in more affordable housing or
public housing as it's repaid. The question really is, is the 3% worth
more to be reinvested in the community or is the 3% too much ora
burden for this particular project. That's the question we really have
to answer. So, other discussion?
Pfab: And the expert - the opinions that we're picking up here is that if you
go to the 3% you could throw the project overboard.
Vanderhoef: And we won't know until the whole project comes in, so...
Pfab: You think somebody is going to put all that effort into it to get find out
it don't work?
Karmer: I think there will be effort put into it, Irvin, yes. Okay.
Lehman: But, I also think I heard someone say that it can come back to us too.
O'Donnell: Yeah.
Lehman: Other comments?
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Lehman: The amendment is that the interest rate be changed from 1 to 3 percent
and that the term of the affordability be extended from 20 to 30 years.
Pfab: Can we break...can we divide the question?
Lehman: It was made as a single amendment. Do we wish to separate the two?
O'Donnell: I don't think we have to.
Vanderhoef: I think we can try it the way it is at this point.
Lehman: Alright. Is there any other discussion on the amendment? All in favor
of the amendment signify by saying aye.
Pfab: Restate the amendment.
Lehman: The only amendment we've had.
Pfab: But...
Lehman: Going to 30 years and 3%.
Pfab: Okay. Alright.
Lehman: It's all we've been talking about the last half hour.
Pfab: It's just - we've talked about a lot of stuff in the last...
Lehman: No, that's all we've talked about are those two items.
Champion: Can I ask one more question?
Lehman: Sure. What's the percent interest?
Champion: No. Do our non-profits pay any interest at all?
Pfab: There are other non-profit people sitting here.
Champion: I'm asking Steve.
Lehman: Well, Steve...
Kanner: Can Steve answer this?
Nasby: We do have loans with non-profits for affordable housing projects
greater Iowa City. We have them, I believe, 1% and the Housing
Authority is carrying a note with HACAP on the sale the Broadway
units which was done several years ago. I believe that note is at 6 or
7%.
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O'Donnell: Six or seven.
Atkins: So, we do have loans with non-profits as well.
Champion: And they pay interest.
Lehman: All in favor of the amendment say "aye." Opposed?
Pfab: Opposed.
Lehman: Motion carries 5-1. Pfab voting the negative. Alright. Other
discussion on the resolution?
Kanner: Yeah. I'd like to offer an amendment.
Lehman: Okay.
Kanner: That the amount of money given to Elderly Services for the...I lost the
place hem what's the...
Vanderhoefi Elder Services.
O'Donnell: Small Repair Program.
Kanner: Small Repair Program be increased from $5,000 to $40,000 their
current funding. And that be money be deducted from the economic
development portion.
Lehman: We have...
Pfab: I'll second that.
Lehman: ...an amendment or a motion and a second for an amendment that
would change the allocation for the Small Repair from $5,000 to
$40,000. Those funds coming from the economic development funds
that have been reserved by the Council. Discussion?
Champion: Well, I certainly do feel that the Elder Services Home Repair Program ·
needs more money than they were allocated. I think that is a very
valuable service to the community, but that's not where I would take
the money from.
Kanner: Yeah. I think we have heard that this is a program that's desperately
needed. Connie, I know that you'd like to take that from another
project there that I think is also desperately needed. The planning
study for emergency housing. And in this time of dire economic
straits to a certain extent, I think we could hold off on the economic
development money that we've set aside which is an increase over last
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year's. Put that money into immediate benefit.
Champion: Well the planning study to me, I'm not saying that it's not needed, but
I think that we have agencies that need immediate help and we don't
need to be doing more agencies that we can't finance and that's the
problem that I have with the planning study. I, however, so I would
like to trans...I mean that's what my amendment is going to be and I
can't remember what - do you have that - what is that small repair...I
mean that planning study what is the cost on that?
Vanderhoef: $27,000...let's see administration...
Kanner: $27,000 or $37,000?
Vanderhoef: No. $23,400.
Lehman: $23,400.
Champion: And, so I'm just saying we might as well discuss how the way to
finance it. Then they were granted some money - Home Repair
Services - was granted some money and then I would suggest we add
those all together and then take the money out of economic
development to bring them up to $40,000. Because I think it's
immediate need for people who need immediate help. And I like the
idea that it's a very...the average per project is really small because
they are benefiting a tremendous amount of people out there and I
think that's a great service that we have. A lot of benefit and not a lot
of cost. So, I'm not going to support your amendment, but I
appreciate... I do agree that Elder Services needs to be financed.
Lehman: Other discussion?
Pfab: If you're not supporting Steve's motion?
Champion: No.
Pfab: So what are you saying the money is coming from?
Champion: Well, I think we need to deal with Steve's motion first.
Lehman: Well, I think that if this amendment is defeated there will be another
amendment proposed to take the money from the...
Vanderhoef: feasibility study for emergency...
Pfab: I guess at this point I would ask a very blunt question, how much
money is setting in the economic development fund right now after
this allocation?
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Kanner: From CBDG?
Pfab: Yes and other City funds sitting in economic development.
Commission or Council wherever that money is, how much is sitting
there now?
Vanderhoefi The money from economic development that was awarded from the
General Fund is all allocated.
Pfab: It's spent?
Vanderhoef: It is allocated.
Pfab: Is it spent?
Vanderhoef: It's not spent, but it's going into the project this summer.
P fab: What project?
Vanderhoef: The development for the extension of Mormon Trek.
Pfab: Okay. That's way more important than houses for homeless people.
Vanderhoef: That's a different fund.
Pfab: Oh, it's a different fund? So, now you're going to take money out of
the CBDG to do that so that the homeless people don't have it?
Vanderhoef: No, no, no, no.
Pfab: That's exactly what you're doing and you can call it anything you
want.
Vanderhoefi You have the two funds mixed up.
Pfab: No, I don't.
Vanderhoef: All right.
Lehman: Okay. Is there other discussion?
Pfab: I think we're going to have to look in the mirror when we go home at
night and decide what's important and what isn't.
O'Donnell: I think that when we fully understand that Irvin will be able to do that.
Lehman: Okay. Is there other discussion on the amendment that would take
$35,000 out of the economic development fund and apply it to the
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Small Repair. All those in favor say aye. Opposed. Let's do a show
of hands. In favor, raise your right hand. Opposed. The motion is
defeated 2-4. Kanner and Pfab voting in the affirmative. Is there other
discussion?
Champion: I would like to make an amendment to fund the Elder Services Home
Repair Project by eliminating the planning study. I can't remember, I
don't have the energy...
Vanderhoef: Emergency Housing Project.
Champion: Thank you. Thank you, Dee. Even though I asked Dee to write it
down for me I still can't remember it. And also to take whatever we
need to equal $40,000 out of the economic development fund.
Lehman: Which would be $11,600 1 believe.
Champion: Right.
Lehman: Is there a second to that amendment?
O'Donnell: I'll second that.
Lehman: We have a motion and a second. Discussion?
Pfab: Is there anyone here in the audience that can speak to this...what that
study is really going to be...what you're asking for?
O'Donnell: You know we need to set a precedent here. We need to, Irvin we need
to speak to the Mayor and the Mayor should call people up rather than
us individuals calling people up.
Pfab: I guess I can ask the Mayor, could you do that?
Lehman: Go ahead.
Christy Canganelli: Thank you. My name is Christy Canganelli and I'm the Executive
Director for the Emergency Housing Project. The application in
question was submitted because there are no other funding sources for
such a project. There is no administrative assistance other than
myself. I am the only administrative agent of the organization and we
specially submitted this because we are told consistently that we are a
burden to the Northside neighborhood and the Northside neighborhood
has suffered. I think the clients that we are trying to serve and
rehabilitate, assist with their recovery, it's unconscionable that we're
located in a neighborhood where there are constant keg parties and we
do need to be located somewhere else. We do not want to add extra
burdens on other.., operating on other organizations in the community.
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We don not want to create expenses that are not tenable by this
community. These are concerns that you have voiced and this project
application was in direct response to those considerations. We want to
go forward with an application with a project that is well sited.
Location is a real issue here. Where it is not in communities like
Cedar Rapids or Davenport. There's no infill areas, there's no
neighborhood we can improve by siting a homeless shelter here. It's
specific and different situation here in Iowa City. So, it would be
siting. It would be what the facility would look like. The capacity is a
serious issue given the interaction between our organization and other
organizations that provide services in this community. The fact that
this is not seen as a need here and now, I think, you're in a different
position and a more comfortable position than we are. If you were on
the front porch or working in the shelter on a nightly basis and had to
turn women and children away nightly throughout the year - during
the winter, maybe your perception of what was an immediate need
would be differently defined. These are people who are working in
some of the factories - General Mills, Oral B doing temp work.
They're sleeping behind dumpsters. They're mentally ill people who
are sleeping under the bridges who we cannot shelter. The crowding
conditions of the shelter do not make it a place that is very inviting for
people who are suffering from serious mental illnesses. These are all
needs that we need to focus on and get community wide input in. And
I guess my perception and definition of what is emergent and
immediate and who is here and now and in need of services is
completely different than what many of you are saying and I don't
understand that. And I don't understand if this is in direct response to
things that we've heard or concerns from the Council and from this
community here's an opportunity to respond to that and have a
community based dialog and input on what would be tenable
programs. And you're shutting it down and saying "no" this is not a
need. You can't have both. And if it's all right to subsidize one
program through economic development, then why isn't it all right and
perfectly supportable to subsidize another application through
economic development?
Vanderhoefi I've wrestled with this particular thing because I've been thinking
about it quite a bit and what I'm looking at in the big picture is the
number of dollars that we are spending and the number of housing
units that we can impact and I finally came to the decision just this
morning that I believe that it is more important to keep our housing
stock up which are the houses that hopefully your tenants will move
into when they leave emergency housing. My dollars...it's real hard
to balance this and I don't have numbers to substantiate it, but I truly
think that because of the size of the projects that keep these houses
where we can keep people in them and keep them off of the street to
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#16 Page 62
keep them into the minor repairs so that they keep a safe house and the
house doesn't deteriorate in its usability
[end of tape 02-45, beginning of tape 02-46]
In another year when the economic climate is a little bit better because
what I suspect your study is going to say is that yes you're going to
need to go forward with a different unit. All of that what will be
affordable in this community may not house even as many as you are
housing presently, but it would be a different kind of facility than what
you're working in now in a differem location. But, this community
really right now is being very stretched for donations for capital
projects and I just...I had to make that decision today and that's where
I came down.
Canganelli: I guess looking and welfare issues I'm coming from the same position
in that we shelter over 700 people in a year that are impacted by poor
safety and health welfare standards within the facility that we're
working out of which is public facility which has worked on very
limited public support - local public support. We've been very
efficient in almost to a fault. And that an average investment of about
$300 per unit I'm not sure that kind of investment is the kind that you
were speaking to that is literally keeping that house well preserved and
keeping that household in that house. That that's the difference
between keeping that house preserved and not preserved. So, I'm not
sure that that's a fair representation of what the application is. And
there has been no discussion really given to the fact that there is very
little private solicitation for that and we work very hard to maintain
heavy investment from the private sector here - individual donations
for our program.
Vanderhoefi And the City did come up with a little more assistance for your
operation this year.
Canganelli: Which leveraged over $400,000 public money which came into this
community which will not come into this community without that
assistance and it's going to other service providers employing other
people in this community which is used in a very serious need in a way
that is not ordinarily needed in other years. So, that may not have been
well documented or brought to the attention of the Council that that
money does leverage over $400,000 for this community. Thank you.
Lehman: Other discussion on Council?
Kanner: Connie, I think most of us have been at a United Way heating on the
Council representatives and the one thing we hear over and over again
is that they need to...all the organizations that come to United Way
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and come to the City which includes Emergency Housing need to
work harder at professionalizing their staff and planning for the future
and I heard it especially being said for Emergency Housing that that
was a deficit. And I think they've worked very hard in the last couple
of years to do the things that were requested of them. And I think that
this is a continuation of trying to get ahead of the ballgame. They're
never going to get ahead of the ballgame. Them are thousands of
people that are turned away every year. We just want to make it
better. And I think this is one thing they've been asked to do and
they're coming to the City, they're coming to the community and
saying let's do the study to get ahead. I think it's critical that we allow
them to get ahead. This will allow them to do that and the dividends
that are going to pay off are going to be tremendous in the long nm.
Lehman: Other discussion?
Pfab: It's almost unconscionable to watch the money being spent in the
downtown area for commercial projects and it isn't enough money to
do a study for homeless people because we don't have the money. The
economic development committee Commission took a bite off the top
of the CDBG money and it's going to go to build a bypass down below
here or someplace like that. I don't know where this money is going,
but I tell you if this is turned down, I am going to ask for an audit of
every sum of money that goes into economic development. Penny by
penny.
Lehman: Irvin, the money...
Pfab: I mean it. This is unconscionable. I mean if...sure, it's nice, it's nice
to go home to a nice home and to hell with everybody else. If you
want to vote that way, do it. But, I won't.
Lehman: Is there any other discussion on the amendment? All in favor of the
amendment signify by raising their right hand.
Pfab: Restate the amendment.
Lehman: The amendment states that the money presently recommended for the
feasibility study for Emergency Housing of $23,400 be transferred to
the Small Repair Program and an amount from economic development
sufficient to bring it up $40,000 to be also transferred.
Kanner: That would be $11,600.
Vanderhoef: $11,600.
Lehman: I think $11,000.
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Vanderhoefi That's right. I double checked it.
Lehman: Okay. All in favor of that amendment raise their right hand.
Opposed? The amendment carries, 4-2. Karmer and Pfab voting the
negative. Other discussion on the resolution? Roll Call. Motion
carries 6-1. Pfab voting the negative.
Karr: Motion to accept correspondence?
Vanderhoef: So moved.
Lehman: Moved by Vanderhoef.
O'Donnell: Second.
Lehman: Seconded by O'Donnell to accept correspondence. All in favor? [all
ayes]. Opposed? Motion carries. Get Ross. There he his. Welcome
back.
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ITEM NO. 19 CONSIDER A RESOLUTION AWARDING CONTRACT AND
AUTHORIZING THE MAYOR TO SIGN AND THE CITY
CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION
OF THE FIRST AVENUE CORRIDOR IMPROVEMENT
PROJECT - ROCHESTER AVENUE TO D STREET.
Lehman: Item 19: Consider a resolution awarding contract and authorizing the
Mayor to sign and the City Clerk to attest a contract for construction of
the First Avenue Corridor Improvement Project - Rochester Avenue to
D Street. There were...the engineer's estimate was $588,000. We
received two bids. Low bid being $479,270. Public works is
recommending awarding the project to L.L. Pelling of North Liberty
for $479,270.08.
O'Dormell: I would move that, Emie.
Vanderhoefi Second.
Lehman: Moved by O'Donnell, seconded by Vanderhoef. Discussion?
Champion: We're saving a lot of money tonight.
O'Donnell: A bunch of money.
Kanner: I have a question...
Vanderhoef: It's off of capital improvement.
Kanner: I have a question for Steve. We hear that the short falls in the State
legislature are even greater.
Atkins: Yes.
Kanner: And State budget. How much of that do they project for road tax.
Does it have any ideas? Is it possible that we're going to get even less
road taxes for a project like this?
Atkins: It's always possible. If you remember the first hit that we took was
about 7% I believe and change. We incorporated that into the budget
that you approved. The Governor's recommendation that's kicking
around now would reduce State funding from the road use tax which is
the substantial portion of it and they were plarming on taking no
further monies from local govermnents - counties and cities. Did that
change answers? Yes. Please keep in mind we've had a long standing
policy that we attempt to maintain a reasonably healthy balance in our
road use tax so that we can cover project commitments. We might not
be able to make future commitments, but I feel very confident that we
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would be able to cover this.
Kanner: What percentage of this project is covered by road use tax?
Atkins: This one - bridge maintenance or the 1 ~t and Rochester?
Kanner: This is the 1 st.
Atkins: If I recall, the estimate is about 75/25 road use/general obligation.
Now, that will...I've got to have some flexibility in deciding that.
But, if it's the smaller, smaller by our standards you know these are
smaller projects we try to use our current cash and that is the road use
tax and then supplement it with general obligation only if we have to.
Kanner: So, currently it is 75% road use taxes.
Atkins: Approximately.
Kanner: And your rough estimate is that that won't change at least for this
project.
Atkins: I don't believe it will, Steven, no. I think we'll be okay. Now some
future projects, that may change. We don't bring anything to you
unless we know it's funded.
Lehman: Other discussion? Roll call. [Motion carries]
Champion: Can I just do a quick follow up on Kanner's question because you
called roll call although I was going to support it. If...did you say that
if we don't get the road use dollars that we're suppose to get, you
postpone projects or you dig into the reserve?
Atkins: We maintain a reserve that allows us to fulfill our commitments.
Champion: Right.
Atkins: What we hope is that the State will not reduce it to the point that we
would, in fact, wipe out that reserve. We try to maintain that balance
point. If I see...if I were to see the State planning to take a big hit on
our road use tax, I'll be back to see you and explain to you that certain
proposed road use tax funded projects are going to have to be adjusted.
But, I haven't seen that yet.
Champion: Okay.
Vanderhoef: But, you're talking about road use tax reserves not general fund.
Atkins: Yes. Not general fund. Road use tax not general fund. That's correct.
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Lehman: Okay.
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ITEM NO. 24 CITY COUNCIL INFORMATION.
Lehman: City Council information?
Karmer: I have a few things. We received notice that our insurance rating has
improved from a 4 to a 3.
Atkins: Fire insurance.
Kanner: Fire insurance rating and that's good news for Iowa City businesses.
Some of them, most likely, will receive slight breaks on their
insurance costs.
Pfab: Or less going up this year.
Kanner: Or less going up, but again congratulations again to our fire
department. I think it's one of the best in the State if not the Country.
Went jogging at Weatherby Park. It's a great trail that's there.
Probably most of us have been there and I talked to Terry about
putting mileage or kilometer measurements there and he said that there
are plans to that at some of the parks and I hope that does happen.
Atkins: I wasn't aware of that. I'll ask him about that.
Kanner: Yeah and if you could keep us appraised.
Atkins: Sure.
Kanner: I think it's a lot of people would come them to jog. Maybe high
school teams. I think it's a great place to do some jogging there and
walking.
Vanderhoe£: Good bragging rights to when you say how many times you went
around and how far that was.
Kanner: Definitely.
O'Donnell: I stopped bragging a long time ago.
Vanderhoef: Oh, I didn't.
Champion: I would just go to the first marker and then go back to the next one.
Like I would go to number one then number 30.
O'Donnell: And then get the car.
Champion: And then get the car.
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Atkins: Having trouble with this one?
Kanner: I went to the Latino/Latina conference last Saturday or two Saturdays
ago on April 27th and thanks to Iowa City, (Can't hear) apartments,
received some notes in our package for helping to sponsor that.
Thanks to John Paul Chaisson for putting it together. There was
Human Rights, police, City Managers, I think that's about it for the
City sponsorship.
Atkins: Human Rights, police, City Manager. I seem to think there was
someone else, Steve, but it's gone now. I know those for sure.
Kanner: If you're out there, thank you. Alright. I still hope that City Council
can meet with John Paul, Heather Shank to talk about checking with
the status of the Latino community in Iowa City and Iowa and what we
can do as a City to encourage perhaps some of the goals of the Vilsack
20/10 report and other issues that are associated with the Latino
population in Iowa City which is growing in Iowa as we all know is
growing at a tremendous rate. So that's something that we had on our
agenda before and I know there was some difficulty in scheduling that,
but hopefully we can still schedule that and have that conversation.
Atkins: We'll try again.
Kanner: And we talked to just to let this television viewing public know from
Channel 4 that the last night the City Council voted to look into the
issue of consent in terms of police accessibility to a resident and
whether or not 12 years old is too young. So we're going to be
looking at that in a few weeks hopefully. And finally, I'm also having
office hours again this month Saturday May 11 from 10:00 to 12:00
noon here in the Civic Center in the Lobby Conference Room. So,
come on down and let's talk. Thank you.
Wilburn: At our last Council meeting we gave out the recommendation to the
students from Horace Mann and there was one instructor Stacey Medd,
their English as a second language instructor she did the translation.
Just congratulations to her because she was recognized as one of two
Teachers of the Year for Iowa City and then I just found out for the
East-Central Uniserve Unit - about 30 school districts as Teacher of
the Year. So, a lot of talent there.
Vanderhoef: That's it?
Wilburn: Yep. That's it.
Vanderhoefi Did we decide for sure that we were going to talk about policy for
HOME projects?
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Lehman: What do you mean as far as putting it on a work session.
Vanderhoef: Yes. That was...
Champion: I think we should do that before the next...
Lehman: It needs to get put on a pending list because it's something that needs
to be addressed prior to when these things are submitted next fall.
Atkins: Given the level of debate tonight, I think you'll need to settle on
something.
Vanderhoefi I do too.
Atkins: Okay. I'll put it on the pending list then.
Vanderhoef: As soon as there is an open place on the agenda, let's do that please.
Atkins: Okay.
Vanderhoef: And that's all I have. Thank you.
Lehman: Okay. Mike?
O'Donnell: I want to briefly touch on what we did last night with Etc. The
Council had some options. We could have a public hearing which we
have no idea how long it would have taken. We could have
recommended administrative sanctions which would have been
enfomed at the local level. They could have been appealed almost
immediately and the bar would have stayed open. And I mean
appealed to the State. The majority of the Council made the decision,
and I fully agreed, that the best thing to do was send a letter to the
State recommending administrative sanctions. It would be more
expeditious. The Council was not dodging any responsibility and I
kind of resent that implication. I think it is the totally responsible
thing to do and I would like to wish these young injured people a quick
and complete recover. That's all I have.
Lehman: Connie?
Champion: Well, I just want to remind people that the Jaycees are still trying to
find a few more dollars for fireworks, so I would encourage people to
send even small amounts if enough people send them and businesses.
And I just wanted to announce that my last minor child has graduated
from college on Sunday. Well, he's not a minor child. My last...my
last undergraduate.
Lehman: Your youngest child.
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Champion: Tuition payment. Yes. They're all major children.
Lehman: They're all majors. Okay. Irvin?
Pfab: I don't have anything.
Lehman: Congratulations on your pancake breakfast.
Wilbum: Thank you very much. There were 1,173 people were served.
Champion: Wow.
O'Dormell: One more thing, Ernie.
Lehman: Yes.
O'Donnell: KCJJ had a food drive and a telethon and collected, I believe, 8,000
pounds of food as well as $4,000. I mean that's an incredible thing.
They're a great community neighbor and they do this year in and year
out. So, thank you.
Wilbum: You put a lot of work into it.
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