HomeMy WebLinkAbout2006-09-14 Info Packet
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CITY OF IOWA CITY
www.icgov.org
CITY COUNCIL INFORMATION PACKET
September 14, 2006
SEPTEMBER 18 WORK SESSION ITEMS
IP1 City Council Meetings and Work Session Agendas
IP2 Memorandum from the Administrative Assistant to the City Manager: Mobile Vending
Permits
IP3 Memorandum from the City Clerk: Possible amendments to Vehicle for Hire Regulations
MISCELLANEOUS
IP4 Memorandum from the City Attorney: Attendance at IMLA Conference
IPS Memorandum from the Parks and Recreation Director: Brookland Park Project
IP6 E-mail from Catherine Moore: Coronet Apartments
IP7 Agenda Packet: Economic Development Committee - September 11, 2006
IPS Approved Minutes: Economic Development Committee: September 5, 2006
E-mail from Alan Kemp, Iowa League of Cities: University and College City Forum,
September 27 [Distributed at 9/18 Work Session]
PRELIMINARY/DRAFT MINUTES
IP9 Housing and Community Development Commission: August 15, 2006
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CITY OF IOWA CITY
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CITY COUNCIL INFORMATION PACKET
September 14, 2006
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SEPTEMBER 18 WORK SESSION ITEM
Manager: Mobile Vending
IP2
City Council Meetings and Work Session Agendas
Memorandum ~ the Administrative Assistant to the
Permits \,
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Memorandum from th~ity Clerk: Possible amendme s to Vehicle for Hire Regulations
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IP1
IP3
IP4 Memorandum from the City Atl~~~: Attendanc at IMLA Conference
IPS Memorandum from the Parks and Re reation irector: Brookland Park Project
IP6 E-mail from Catherine Moore: Coronet A
IP7 Agenda Packet: Economic Developm t C mittee - September 11, 2006
IPS Approved Minutes: Economic Dev
Ipg Housing and Community evelopment Commission:
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CiTY OF IOWA CiTY
City Council Meeting Schedule and
Work Session Agendas
DELl
September 14, 2006
www.icgov.org
. MONDAY, SEPTEMBER 18
6:30p Council Work Session
. Planning and Zoning Items
. Sand lake Recreation Area
. Mobile Vending Permits
. Vehicle For Hire/Taxi Cabs
. Shelter House Overflow
. Agenda Items
. Council Time
. Schedule of Pending Discussion Items
. Future Meeting Schedule
Emma J. Harvat Hall
. TUESDAY,SEPTEMBER19
7:00p Formal Council Meeting
Emma J. Harvat Hall
TENTATIVE FUTURE MEETINGS AND AGENDAS
. MONDAY, OCTOBER 2 Emma J. Harvat Hall
6:30p Council Work Session - Budget Priorities
I
. TUESDAY, OCTOBER 3
7:00p Formal Council Meeting
Emma J. Harvat Hall
. WEDNESDAY, OCTOBER 4
4:30p Tentative Joint Meeting (School District)
Ie School District
. MONDAY, OCTOBER 16
6:30p Council Work Session
Emma J. Harvat Hall
. TUESDAY,OCTOBER17
7:00p Formal Council Meeting
Emma J. Harvat Hall
. MONDAY, OCTOBER 30
6:30p Special Council Work Session
Emma J. Harvat Hall
. MONDAY, NOVEMBER 6
6:30p Special Council Work Session
Emma J. Harvat Hall
. TUESDAY, NOVEMBER 7
Election Day - No Meeting
Emma J. Harvat Hall
. MONDAY, NOVEMBER 13
5:00p Legislative Meeting
6:30p Special Council Work Session
Emma J. Harvat Hall
. TUESDAY, NOVEMBER 14
7:00p Special Formal Council Meeting
Emma J. Harvat Hall
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CITY OF IOWA CIT~
MEMORANDUM
Date:
September 13, 2006
From:
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City Council \ II\~
Administrative Assistant to the City Manager \Y'
Mobile Vending Permits
To:
Re:
As a result of Council Work Session discussion on July 17 and 31, the following information is
being provided regarding mobile vending operations.
The City Plaza currently contains six licensed mobile vendors. Each cart is provided two
vending locations; generally used alternately for daytime and evening vending. The 100 and
200 blocks of Iowa Avenue contain two mobile vendors who are also assigned two vending
locations each. In the past three years, this year being no exception, it has been difficult
attracting and keeping mobile vendors on Iowa Avenue.
The current mobile vending annual fee is $750. The City charges an additional $15 per month
for electricity. Vendors are responsible for maintaining liability insurance throughout the year
and must pass inspection by the Johnson County Health Department. Required vending hours
are set from May 1 - October 1. Vending after October 1 is at the vendor's discretion.
Historically, there have been five mobile vendors on City Plaza. With construction now
complete by the Library six vendors were permitted this year on City Plaza. Six seems to be an
appropriate number. Staff does not recommend increasing the number of mobile vendors on
City Plaza beyond six.
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CITY OF IOWA CIT~
MEMORANDUM
DATE:
TO:
FROM:
RE:
September 13, 2006
Mayor and City Council ~ll
Marian K. Karr, City Clerk fl'2
Possible amendments to Vehicle for Hire Regulations
As a result of Council work session discussion of September 5, the attached draft
ordinance has been prepared.
The draft contains the following provisions:
1) Establishes a minimum of 3 vehicle for company status; requires 2 to be in
operation at all times
2) Establishes a minimum of3 drivers per company
3) Requires a dome (bubble) light on the roof of each vehicle
4) Requires installation of a taximeter for charges
5) Requires two inspections a year for each vehicle
6) Requires "no smoking" by drivers or passengers
7) Spells out exterior and interior standard for vehicles
8) Requires driver badge include company name and nontransferable
9) Deletes color scheme
10) Renames to "taxicabs"
In addition a provision is included (and blanks provided) for hours or days of operation if
Council wishes to talk about that matter further.
Research was done of various communities and much of the information is based on the
present Cedar Rapids Code. A copy ofthat ordinance is included for reference purposes.
Please note that the Cedar Rapids ordinance contains:
24/7 operation requirement
Establishes rates by ordinance (as does Des Ml)ines)
a reciprocity agreement with Marion and Hiawatha
requires an activity log
defines waiting time
The matter has been scheduled for discussion at the September 18 work session. Once
Council has given staff direction a final ordinance will be drafted, copies provided to all
current licensed companies and consideration scheduled.
Attachment: Cedar Rapids Chapter 52
S:vfhdraftord.doc
Prepared by: Marian Karr, 410 E, Washington Street, Iowa City, IA 52240; 319-356-5041
ORDINANCE NO.
ORDINANCE AMENDING TITLE 5, ENTITLED "BUSINESS AND LICENSE REGULATIONS,"
CHAPTER 2, ENTITLED "VEHICLES FOR HIRE" REPEALING IT IN ITS ENTIRETY AND
REPLACING WITH A NEW CHAPTER 2, ENTITLED "TAXICABS."
WHEREAS, City Code section 5-2 establishes regulations for Vehicies for Hire; and
WHEREAS, City Council wishes to update and enhance appearance and operation of such vehicles;
and
WHEREAS, it is in the best interest of the City to adopt new regulations for "taxicabs".
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCil OF THE CITY OF CITY, IOWA:
SECTION I. AMENDMENTS.
1. Title 5, entitled "Business and License Regulations," Chapter 2, entitled "Vehicles for Hire," is
hereby amended by deleting it in its entirety and adding a new Chapter 2, entitled "Taxicabs" as follows:
5-2-1: DEFINITIONS:
As used in this chapter, the following definitions shall apply:
AIRPORT SHUTTLE: A vehicie furnished with a driver that carries passengers for hire exciusively on a
route that either starts at or ends at the eastern Iowa airport.
APPLICANT: An individual or company wishing to operate as a taxicab within the corporate city limits.
CHARTER TRANSPORTATION: A vehicle furnished with a driver that carries passengers for hire either
on a fixed route in the city or pursuant to a written contract with reservations at ieast twenty four (24)
hours in advance of the service. The vehicle shall operate without a meter installed and charge for
services on an houriy basis or longer periods of time.
DECAL: A license issued by the city clerk which must be attached to each taxicab for identification.
DRIVER: A person authorized by the city to drive a taxicab and has a valid driving badge.
DRIVING BADGE: A card or badge issued by the city clerk to each driver authorized to operate a taxicab.
HORSEDRAWN VEHICLE: Any vehicle operated or pulled by a horse, furnished with a driver and
carrying passengers for hire within the city, and operates without a taxi meter.
PEDICAB: A vehicle propelled exclusively by human power through a belt, chain or gears, having two (2)
or more wheels, furnished with a driver and carrying passengers for hire. It shall be equipped with
properly functioning front and rear lights for nighttime operation, right and left rearview mirrors and right
and left turn signals, and operates without a taxi meter.
RATE CARD: A card to be displayed in each vehicie for hire containing the maximum fare rates then in
force.
STREET: Any street, alley, court, lane, bridge or public place within the city.
TAXICAB: All vehicles furnished with a driver that carry passengers for hire within the city, including, but
not limited to, taxicabs, pedicabs, horsedrawn vehicles, and airport shuttles. "Charter transportation" as
defined in this section and a vehicle owned or operated by any governmental entity that provides public
transportation are not taxicabs.
TAXIMETER: An instrument or device attached to measure mechanically, electrically, or electronically
the distance driven and the waiting time upon which the fare is based and converts them to monetary
charges.
Ordinance No.
Page 2
5-2-2: APPLICATION:
A. Each applicant of a taxicab shall file an application with the city clerk on forms provided by the city,
shall be verified and shall furnish the following information:
1. The name and address of each person with an ownership interest in the company wishing to
operate a taxicab.
2. The experience of the applicant in the transportation of passengers.
3. The record of convictions of misdemeanors and/or felonies, including moving and nonmoving traffic
violations, and certified state of Iowa criminal history and certified state of Iowa driver's record for
each person identified in subsection A1 of this section.
4. Provide a minimum of 3 qualified licensed taxicab drivers.
5. Provide a minimum of 3 qualified licensed taxicab vehicles of which a minimum of two vehicles
shall be in operation at all times. All taxicab vehicles must comply with vehicle requirements in this
ordinance.
6. Provide taxicab service to the public _ hours a day, _ days a week, and have a business
phone that is answered _ hours a day, _ days a week.
7. Provide liability certificate of issuance in accordance with this ordinance.
8. The City Clerk will issue decals atter a 24-hour waiting period.
9. Meet all applicable zoning ordinance regulations and other city regulations.
10. Such further pertinent information as the City may require.
B. Decal:
1. Application Forms: Each applicant shall also file an application for decal with the city clerk on fonms
provided by the city, per each vehicle.
2. Attachment Of Decal: No taxicab shall be operated on any street within the city unless a decal has
been issued by the city clerk. The decal shall be attached to the lower corner of the front windshield
on the passenger side. Pedicabs or horsedrawn vehicles shall display the decal on the left rear of the
veh icle.
3. Issuance Or Denial Of Decal; Nontransferability:
a. The city clerk shall issue a decal to each applicant when the police chief determines that there is
no information which wouid indicate that the issuance would be detrimental to the safety, health or
welfare of residents of the city. The decal shall be nontransferable as between vehicles and
applicants.
b. The refusal to issue a decal may be based on an adverse driving record, conviction of other
crimes or when the applicant's prior experience demonstrates a disregard for the safety of others
and/or a lack of responsibility.
5-2-3: LIABILITY INSURANCE REQUIREMENTS:
A. Requirements:
1. As a condition to granting a decai to operate a taxicab in the city, the applicant shall file with the
city clerk evidence of liability insurance coverage via a certificate of insurance which shall be
executed by a company authorized to do insurance business in this state and be acceptable to the
city. Each certificate shall list all vehicles licensed to the company. It is the responsibility of the
company to file with the city clerk one certificate per company listing all vehicles.
Ordinance No.
Page 3
2. Each certificate shall also provide ten (10) calendar days' prior written notice of any nonrenewal,
suspension, cancellation, termination or bankruptcy of the vehicle for hire.
3. The minimum limits of such policy shall be determined by city council resolution.
4. The cancellation or other termination of any insurance policy or certificate shall automatically
revoke and terminate the licenses issued for the taxicab business and the vehicles covered by such
insurance policy, unless another policy, complying with this chapter, shall be provided and in effect at
the time of such cancellation or termination. The City Clerk shall immediately issue written notification
of the revocation of all licenses for the taxicab business and the vehicles covered by such insurance
which is canceled or terminated. All decals must be returned to the City and the applicant initiate
procedures established in this ordinance at the company's expense.
B. Failure To Obtain Insurance: Failure of any applicant to maintain such coverage In full force and
effect throughout the life of the decal shall constitute immediate revocation of the decal with no further
notice required.
5-2-4: VEHICLE INSPECTION REQUIRED:
A. Each applicant for issuance or renewal of a taxicab decal shall submit with the application a current
certificate of inspection issued by the chief of police or the chiefs designee. The chief of police or the
chiefs designee will establish standards of mechanical fitness for such vehicles and will examine and
certify vehicles for mechanical fitness. Each vehicle governed by this article shall be subject to a semi-
annual inspection as set by Council resolution. All inspections shall consist of the following:
(1) All taxicabs shall be inspected for proper markings, display of information, and the following:
a. Exterior. Headlights, taillights, brake lights, directional signal lights, license plat lights, windshield,
vent glasses, windshield wipers, all other vehicle glass, glass window raisers, doors and door locks, trunk
lid, trunk hood, and Interior door handles, exhaust system, splash shields, hubcaps, bumpers, fenders,
lighted dome light, body and tires shall be inspected to ascertain that each is functioning properly. Each
taxicab shall be maintained in a reasonably clean condition. There shall be no tears or rust holes in the
vehicle body and no loose pieces such as fenders, bumpers or trim hanging from the vehicle body. There
shall be no unrepaired body damage which would create a safety problem or interfere with the operation
of the vehicle.
b. Interior. The rear view mirror, steering wheel, foot brakes, parking brakes, seat belts, passenger
interior light and air conditioning and heating systems shall be inspected to ascertain that each is
functioning properly. The upholstery, floor mats, head lining, door panels and the trunk compartment shall
be inspected to determine whether they are clean, free of tears, and that the trunk has sufficient space for
passengers' luggage. The taximeter shall be inspected to determine that it is properly calibrated.
(2) Nothing herein shall prohibit the random inspection of taxicab by the Police Department where
possible violations of this article or other violations of law regarding the condition of vehicles for hire are
evidence by visual inspection.
(3) Passengers and drivers are not allowed to smoke in taxicab vehicles. Decals or signs must be
conspicuously displayed on the inside of vehicles that read "NO SMOKING ALLOWED IN THIS
VEHICLE."
B. The chief of police or the chiefs designee may require reinspection of a vehicle on belief that a
vehicie is not mechanically fit. In the event any vehicle is determined by the police chief or the chiefs
designee not to be mechanically fit, the decal shall be confiscated by police and returned to the city clerk.
After reinspection and determination that the vehicle meets the standards of mechanical fitness a new
decal will be issued and charged as established by council resolution.
Ordinance No.
Page 4
5-2-5: STATE CHAUFFEUR'S LICENSE REQUIRED:
No person shall operate a motorized taxicab on the streets of the city, no person who owns or controls a
motorized taxicab shall permit it to be so driven, and no motorized taxicab licensed by the city shall be so
driven for hire unless the driver of such motorized vehicle shall have first obtained and shall have then in
force a chauffeur's license issued under the provisions of the code of Iowa, as amended.
5-2-6: DRIVING BADGE REQUIREMENTS:
A. Badge Required: No person shall operate a taxicab on the streets of the city, no person who owns or
controls a taxicab shall permit it to be so driven, and no taxicab licensed by the city shall be so driven at
any time for hire unless the driver of such vehicle shall have first obtained and shall have then in force a
driving badge issued by the city clerk.
B. Application For Badge: Each person desiring to drive a vehicle for hire shall file an application for a
driving badge with the city clerk. Such application shall be verified under oath and shall furnish the
following information:
1. The name and address of the person, and name of taxicab company.
2. The experience of the person in the transportation of passengers.
3. The person's record of convictions of misdemeanors and/or felonies, including moving and
nonmoving traffic violations, and certified state of Iowa criminal history and certified state of Iowa
driver's record.
4. Motorized taxicab drivers shall possess a currently valid Iowa chauffeur's license.
5. Such further pertinent information as the city may require.
C. Issuance Or Denial Of Driving Badge:
1. The city clerk shall issue a driving badge to each person when the police chief determines that
there is no information which would indicate that the issuance of such badge would be detrimental to
the safety, health or welfare of residents of the city.
2. The refusal to issue a driving badge may be based on an adverse driving record and/or conviction
of other crimes or, in the case of a horsedrawn vehicle operator, failure to demonstrate ability to
control the animal and vehicle in traffic.
3. Issuance or Denial of Badge; Nontransferability:
a. The city clerk shall issue a badge to each person when the police chief determines that there
is no information which would indicate that the issuance would be detrimental to the safety, health
or welfare of residents of the city. The badge shall be nontransferable as between persons and
applicants and companies.
b. The refusal to issue a badge may be based on an adverse driving record, conviction of other
crimes or when the applicant's prior experience demonstrates a disregard for the safety of others
and/or a lack of responsibility.
D. Badge To Be Displayed: Each person, while operating a taxicab in the city, shall prominently wear on
the driver's person the driving badge showing the full name of the driver, the driver's photograph, and the
taxicab company. The badge shall be provided by the city clerk.
5-2-7: RATES:
A. Display Of Rate Card:
1. Each taxicab shall have prominently displayed a fare rate card visible to all passenger seats, and
each driver shall provide a copy of the fare rate card to a passenger, when requested. A copy of the
Ordinance No.
Page 5
fare rate card shall be filed with the city clerk, and programmed to the taximeter requirements of this
ordinance.
5-2-8: VEHICLE REQUIREMENTS:
A. Lettering Required: Each taxicab shall have the name of the owner or the operating company thereof
on each side of the vehicle in letters at least two inches (2") in height. Pedicabs and horsedrawn vehicles
may use lettering smaller than two inches (2"). Removable lettering shall not be allowed.
B. Every taxicab operating shall have installed and be equipped with a taximeter of standard size and
design, approved by the Chief of Police or their designee. All fares charged by the owner, operator or
driver of any taxicab shall be determined by the taximeter from the fare recorded on the face thereof
when transporting passengers.
(1) Inspection. No vehicle license shall be issued to any taxicab owner or operator until the meter
installed in any such taxicab shall have been inspected by the Police Department and found to be
accurate.
(2) Operation. Only meters operated from the transmission shall be used on taxicabs.
(3) Inaccuracy. No person shall use, or permit to be used, upon any taxicab owned or operated by
him, a meter which shall be in such condition as to be over 5 percent inaccurate for every unit of
measurement used to determine fare.
(4) Illumination of Dial. No meter shall be used between sunset and sunrise unless the face of the
meter is illuminated by a suitable light, or if the meter has digital numbers they must be lighted at all
times.
(5) Sealed Case. No person shall use, or permit to be used, or drive for hire, a taxicab equipped with
a meter, the case of which is unsealed, and which does not have its cover or gear intact.
(6) False Signal. No driver or operator of a taxicab equipped with a taximeter and while carrying
passengers, or under employment, shall display the signal affixed to such taximeter in such position as to
denote that such vehicle is not employed, or in such a position as to denote that the driver is employed at
a rate of fare different from that to which the driver is enlilled under the provisions of this chapter.
C. Lighted Dome: The cab shall also have a lighted dome light on the exterior roof of the vehicle noting
that the vehicle is a taxicab.
5-2-9: VEHICLE STAND:
A. Application For Use Of Stand: The owner or operator of a taxicab licensed pursuant to this chapter
may apply for the exclusive use of a designated parking space for the taxicab. The location of a parking
stand shall be determined and approved by the city manager, or designee, as provided in title 9 of this
code.
B. Fee: The city council shall determine by resolution the fee for a parking stand.
C. Authorization: The city clerk shall authorize a parking stand after the iocation has been determined by
the city manager, or designee, and after the applicant has paid the required fee to the city clerk.
5-2-10: TERMS OF DECALS AND BADGES; RENEWALS:
A. Driving badges shall be valid for a period of one year from date of issuance or the remaining period of
chauffeur's license if under one year.
B. Decals shall be valid for 6 months and shall commence March 1, or on the date the operations are
started, and September 1. All decals shall terminate the last day in February.
C. Renewals shall follow the same procedure as set for initial issuance.
Ordinance No.
Page 6
5-2-11: HORSEDRAWN VEHICLES:
A. Routes: A horsedrawn vehicle applicant must adhere to the routes specified in the application for a
license. A new or temporary route must be filed with the city clerk before an applicant may use such
route.
B. Removal Of Animal Waste:
1. All horses pulling horsedrawn vehicles shall be equipped with adequate devices to prevent manure
and other excrement from falling on the streets of the city.
2. Any excrement which falls on the city streets shall be removed immediately at the applicant's
expense.
3. All animal waste for disposal shall be transported to sites or facilities legally empowered to accept it
for treatment or disposal.
C. Animal Treatment And Health:
1. Treatment Of Animals:
a. Applicants shall assure adequate rest periods, feeding schedules, health and reiated animal
performance and well being for each animal under the applicant's ownership, care or control. This
responsibility shall include carriage load limits, hours of operation and daily hours of animal usage.
b. The feeding of an animal drawing a vehicle for hire from a feedbag or bucket along any street or
alley is permitted so long as the animal is not permitted to graze.
c. No animal shall be left unattended while in service.
2. Health Certificate:
a. For each animal that will be pulling a horsedrawn vehicle, the applicant shall provide to the city
clerk a certificate of soundness, issued by a veterinarian licensed by the state, finding each animal
to be free from infectious disease, in good health and fit for hack and carriage service under this
chapter.
b. After initial inspection, each animal shall be reinspected at intervals of no more than six (6)
months, and a certificate of soundness shall be issued by a veterinarian and filed with the city clerk
in order for each animal to remain in service.
D. Equipment Requirements:
1. Every horsedrawn vehicle shall conform to such requirements as may be imposed by state law with
respect to equipment.
2. Each vehicle shall be equipped with rubber tires.
5-2-12: REVOCATION OF LICENSES AND PERMITS:
License and permits issued under this chapter may be revoked as provided in section 5-1-5 of this title.
SECTION II. REPEALER. All ordinances and parts of ordinances in conflict with the provision of this
Ordinance are hereby repealed.
SECTION III. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any
section, provision or part thereof not adjudged invalid or unconstitutional.
Ordinance No.
Page 7
SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect March 1,2007.
Passed and approved this _ day of
,2006.
MAYOR
ATTEST:
CITY CLERK
Approved by
City Attorney's Office
Clerklordltaxicabs.doc
52.01 ADOPTION AND SCOPE.
Page 1 of 1
CHAPTER_52 TAXIGf,BS AND L1MO!,JSINES
52.01 ADOPTION AND SCOPE.
This chapter shall be known as the Metropolitan Area Taxicab and Limousine Code and shall
apply to the operation of taxicab and limousine services originating within the city limits of the
cities of Cedar Rapids, Marion and Hiawatha. (31-01)
http://www.ordlink.com/codes/cedarrapids/_DATAlTITLE52/52_0 I_ADOPTION_AND _'" 9/13/2006
52.02 DEFINITIONS.
Page ! of !
CHAPTERJi2.:rAXICABS AND LIMOUSINES
52.02 DEFINITIONS.
Courier Service: Courier service is defined as transportation for hire of anything other than
human cargo. To run without the taximeter, a courier service must be registered with the Iowa
Department of Transportation and have proper IDOT numbers on the side of the vehicle
signifying that it is registered to be a courier.
Exceptions: For purposes of this chapter, those motor vehicles owned and operated by hotels,
motels and other boarding places for the purpose of transporting patrons between the hotel,
motel, or boarding place and another point (must be a free courtesy shuttle service), auto repair
shops for the purpose of transporting patrons between the auto repair shop and another point
(must be a free courtesy shuttle service), ambulances and other emergency vehicles, and public
transit vehicles are excluded from the provisions of this chapter.
Limousine: A motor vehicle with a passenger rated capacity of more than 3, exclusive of the
driver, and not regulated by the Office of Motor and Carrier Services of the Iowa Department of
Transportation. The vehicle and driver are engaged in transportation of passengers for hire in a
limousine service. The vehicle shall be operated on a fixed route or have reservations 24 hours in
advance for their service, operate without a meter installed in the vehicle and charge for services
on an hourly basis or longer periods of time.
Limousine Business: A firm that provides limousine services originating within the corporate
limits of the metropolitan area.
Passenger: Any tangible item being transported including human cargo. All fares charged by the
owner, operator, or driver of any taxicab shall be determined by the taximeter from the fare
recorded on the face thereof when transporting passengers.
Metropolitan Area: The metropolitan area is the area within the corporate limits of the cities of
Cedar Rapids, Marion, and Hiawatha.
Taxicab: A motor vehicle regularly engaged in the business of carrying passengers for hire and
not operated on a fixed route or schedule and operating with a meter.
Taxicab Business: A firm that provides taxicab services originating within the corporate limits of
the Metropolitan Area. Activities to be conducted include, but are not limited to: receiving calls
and dispatching of taxicabs, transferring driver's and/or vehicles, parking and storage of vehicles,
storage of lost or misplaced baggage, maintenance and storage of business records, the
conducting of employee meetings and related personnel matters. (31-01)
http://www.ord!ink.com/codes/cedarrapids/_DATAlTITLE52/52_02_DEFINITIONS_.htm!9/13/2006
52.03 TAXICAB AND LIMOUSINE BUSINESS LICENSE.
Page 1 of2
CHAPTER 52 TAXtCABS AND LIMOUSINES
52.03 TAXICAB AND LIMOUSINE BUSINESS LICENSE.
(a) Required. Every person owning, operating or controlling a taxicab or limousine within the
metropolitan area shall be associated with a taxicab or limousine business, and each taxicab and
limousine business shall obtain a business license.
(b) Any person seeking a taxicab or limousine business license shall make an application to the
City Clerk of the city where the business has its primary business office. The City Clerk shall
cause an investigation of the application and of the background of the applicant to be made
through the Iowa Department of Criminal Investigations. The City Clerk shall also cause an
investigation to be made to determine that all requirements of this chapter have been satisfied
and that the applicant has fully complied with all applicable ordinances and regulations relating to
buildings and zoning. The applicant will pay for all costs associated with any background
investigations.
(c) Qualifications for Taxicab Business License. Each company filing applications with the
office of the City Clerk of their respective city for a Taxicab Business License shall meet the
following minimum requirements:
1. Provide an office which must be accessible 24 hours a day, 7 days a week and upon request
of the Chief of Police or their authorized representative;
2. Provide taxicab service to the public 24 hours a day, 7 days a week and have a business
telephone that is answered 24 hours a day, seven days a week so that any individual may
request the services of the taxicab company. The business shall have a listed telephone number;
3. Provide a minimum of 3 qualified licensed taxicab drivers;
4. Provide a minimum of 2 qualified licensed taxicab vehicles of which a minimum of one vehicle
shall be in operation at all times. All taxicab vehicles covered under the business license must
have the same paint color and design (existing vehicles will be grandfathered - all new vehicles
must comply). The selected taxicab business paint color and design must be noticeably different
than other existing taxicab businesses;
5. Meet all appiicable zoning ordinance regulations and other applicabie city regulations;
6. Activity Log. Each business must keep a daily activity log listing the date, time, trip origination
address and trip destination address. The activity logs must be available for inspection by and
upon the request of the Chief of Police or the Five Seasons Transportation & Parking Director or
their designees. The logs must be maintained by the taxicab business for a period of one year.
(d) Qualifications for Limousine Business License. Each company filing applications with the
office of the City Clerk of their respective city for a Limousine Business License shall meet the
following minimum requirements:
1. Provide a minimum of one qualified licensed driver;
2. Provide a minimum of one qualified licensed vehicle;
3. Meet all applicable zoning ordinance regulations and other applicable city regulations;
4. Activity Log. Each business must keep a daily activity log listing the date, time, trip origination
address and trip destination address. The activity logs must be available for inspection by and
upon the request of the Chief of Police or the Five Seasons Transportation & Parking Director or
their designees. The logs must be maintained by the limousine business for a period of one year.
(e) The business license application shall contain the following:
1. The full name of the taxicab or limousine business, the street address of the premises for
which the application is being made, all telephone numbers where the taxicab or limousine
business will be conducted, and the paint color and design of the vehicles (taxicabs only);
2. The full name, address, telephone number, date of birth and social security number of the
applicant, whether the applicant has been convicted of a felony as well as any aliases by which
the applicant has been or is currently known;
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52.03 TAXICAB AND LIMOUSINE BUSINESS LICENSE.
Page 2 of2
3. The type of business entity such as sole proprietorship, partnership or corporation and, in the
case of a corporation, the names and residence addresses of all officers and directors of the
corporation and of each stockholder holding 10 percent or more of the stock of said corporation;
in the case, of a partnership, the names and residence addresses of all partners including limited
partners of the partnership;
4. The name of the owner of the building where such taxicab or limousine business will be
located;
5. Copies of any lease or rental agreement governing the applicant's right in said buiiding;
6. A sworn statement that the contents of the application are true and that the applicant is of good
moral character;
7. The signature of the applicant or applicants or, If the application is in the name of a
corporation, the signature of each officer of the corporation; if the application is in the name of a
partnership, the signature of each partner, including limited partners, of the partnership.
(I) If the City Clerk finds that the applicant has fully complied with all requirements of this chapter
and with all other applicable ordinances and codes, the City Clerk shall authorize the issuance of
a license to conduct a taxicab or limousine business at the location designated in the application.
Such license shall commence on July 1 st, or the date the operations are started, if later, and shall
terminate on the following June 30th.
(g) Fees. The annual business license fee shall be $30.00. Said fees shall be prorated quarterly
and paid to the City Clerk of the city where the taxicab or limousine service has their primary
office.
(h) Each taxicab and limousine business shall have a separate license for each place of
business, which shall be valid only for the business conducted at that location.
(i) Each taxicab or limousine business shall display its license conspicuously where all persons
entering such premises may readily observe such license.
U) No taxicab or limousine business license shall be sold or transferred. The purchaser or
purchasers of any business or of the majority of the stock of any corporation operating a business
shall obtain a new taxicab or limousine business license before operating such business at the
location for which the license has been issued or at any other location.
(k) Reciprocity. All cities in the metropolitan area shall recognize licenses issued by other cities
in the metropolitan area. It is the duty of the City Clerk to notify the other City Clerks in the
metropolitan area whenever a taxicab or limousine license is issued or revoked. A license
revoked in one city will not be reissued in another city until the revocation period has expired.
(31-01)
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52.04 VEHICLE LICENSE.
Page 1 of2
CHAPTER 52JAXICABS.AND L1MQUSINES
52.04 VEHICLE LICENSE.
(a) Required. No person shall operate any taxicab or limousine where service originates on the
streets of the metropolitan area without a license therefore for each taxicab or limousine to be
issued by the respective City Clerk. Taxicabs and limousines shall also have such licenses or
certificates as may be required by the Iowa Department of Transportation.
(b) It shall be the duty of the respective City Clerk to furnish for each qualified taxicab and
limousine which meet minimum requirements as set forth in this chapter a license, giving the
make and complete vehicle identification number (VIN) of the vehicle, vehicle license plate
number, and other information deemed necessary by the City Clerk. The owner of the vehicle
shall cause the vehicle license to be placed in such vehicle and produced upon request, during
the continuance of the license. Upon the expiration of the license, the owner shall cause the
vehicle license to be removed from the vehicle. Immediately after the expiration of the license, all
markings shall be removed from the exterior of the vehicle.
(c) License Fees. The license fee for each taxicab and limousine shall be $30 per vehicle per
fiscal year and paid to the respective city in the office of the City Clerk. The eastern Iowa Airport
may also require parking, curb or other user fees in addition to the license fees paid to the city.
The license for each taxicab and limousine shall commence on July 1 st, or on the date the
operations are started, if later, and shall terminate on the following June 30th.
(d) Insurance. No license for a taxicab or limousine shall be issued, renewed or extended
without the owner thereof first filing in the office of the City Clerk an insurance policy or certificate
acceptable to the City Attorney issued by a company authorized to do business in the State of
Iowa.
1. The minimum limits of liability of the insurance shall be as follows unless other regulations or
provisions of law require higher limits.
A. To cover the insured's legal liability for personal injury or death resulting therefrom, for each
vehicle, for any recovery by one person as a result of anyone accident or other cause,
$250,000.00; and for all persons receiving personal injury as a result of anyone accident or other
cause, $250,000.00, and shall also comply with all state and federal requirements, if greater, and
to cover the insured's legal liability for damage to or destruction of any property other than that of,
or in charge of the insured as a result of anyone accident or other cause, $250,000.00; or
B. The option of submitting an insurance certificate with a combined single limit coverage of a
minimum of $250,000.00 will be accepted.
2. Before a policy may be suspended or canceled, the respective City Clerk's office must receive
a minimum of 10 days prior written notice of such proposed suspension or cancellation.
3. The insurance policy shall be issued for a period to cover the life of the license applied for and
shall commence either on the date of issuance of the license, or, July 1 st, and in each case be
valid until the following June 30th. Failure to keep such insurance policy in full force and effect
shall be cause for revocation of the license.
4. The cancellation or other termination of any insurance policy or certificate shall automatically
revoke and terminate the licenses issued for the taxicab or limousine business and the vehicles
covered by such insurance policy, unless another policy, complying with this chapter, shall be
provided and in effect at the time of such cancellation or termination. The City Clerk shall
immediately issue written notification of the revocation of all licenses for the taxicab or limousine
business and the vehicles covered by such insurance which is canceled or terminated.
5. No driver or owner of a taxicab or limousine shall drive or permit to be driven a vehicle without
an insurance policy or certificate acceptable to the City Attorney being filed as herein provided.
6. The name of the insured on the certificate must contain the insured's street address.
(e) Condition of Vehicles -Inspection. Every taxicab or limousine shall be inspected before
being put in service, and shall thereafter be inspected semi-annually for such period of time as
the same continues to be operated as a taxicab or limousine, such inspections to be conducted
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52.04 VEHICLE LICENSE.
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by the Chief of Police or their authorized representative. Vehicle inspections may also be
required more frequently on an as-needed basis as determined by the Chief of Police or their
authorized representative. No vehicle shall obtain a license, or be operated as a limousine or
taxicab without passing such inspections. Each vehicle passing such inspection shall obtain a
sticker to be placed in a conspicuous place on each vehicle by the Police Department.
Each taxicab and limousine shall meet all of the following requirements:
1. The vehicle in all respects shall conform to the requirements of Chapter 321 of the Code of
Iowa;
2. The vehicle shall be in a safe and sanitary condition;
3. Each vehicle shall be equipped with a working air conditioner and heater of adequate capacity
for such vehicle;
4. All taxicabs shall be marked on the outside, on both sides, with the name of the company,
phone number, unit number and base rates. The markings shall be painted or affixed by decal in
letters or figures at least 211, inches in height, except the rate letters or figures which must be at
least 1 11, inches in height. (existing vehicles will be grandfathered - all new vehicles must
comply);
5. No person shall operate a vehicle marked as a taxicab unless iicensed pursuant to this
chapter;
6. All vehicles and equipment shall be clean on the exterior and interior at any time the vehicle is
in service;
7. All vehicle exteriors shall be maintained in good condition with parts intact and properly
painted;
8. All vehicles shall be in excellent mechanical operating condition free from all known defects.
No vehicle shall be used in passenger-carrying service with a known mechanical problem which
could cause inconvenience or a safety hazard to the passenger;
9. Unsafe tires shall not be used on any vehicle;
10. No taxicab shall be operated without a sign permanently affixed to the rooftop of the vehicle
that designates the vehicle as a taxicab.
(f) Transferring Drivers and/or Vehicles. The transferring of drivers and/or vehicles in a
residential district is restricted to a maximum of one vehicle per residential building address.
(g) Reciprocity. All cities in the metropolitan area shall recognize licenses issued by other cities
in the metropolitan area. It is the duty of the City Clerk to notify the other City Clerks in the
metropolitan area whenever a taxicab or limousine license is issued or revoked. A license
revoked in one city in the metropolitan area will not be reissued in another city until the revocation
period has expired. (31-01)
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52.05 TAXIMETERS.
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CHAPTER 52 TMICABS AND LlMOL.JSINES
52.05 TAXIMETERS.
(a) Required. Every taxicab operating on the streets of the metropolitan area shall have installed
and be equipped with a taximeter of standard size and design. approved by the Chief of Police or
their designee. All fares charged by the owner. operator or driver of any taxicab shall be
determined by the taximeter from the fare recorded on the face thereof when transporting
passengers.
(b) Inspection. No vehicle license shall be issued to any taxicab owner or operator until the
meter installed in any such taxicab shall have been inspected by the Police Department and
found to be accurate.
(c) Operation. Only meters operated from the transmission shall be used on taxicabs.
(d) Inaccuracy. No person shall use, or permit to be used, upon any taxicab owned or operated
by him, a meter which shall be in such condition as to be over 5 percent inaccurate for every unit
of measurement used to determine fare.
(e) Illumination of Dial. No meter shall be used between sunset and sunrise unless the face of
the meter is illuminated by a suitable light, or if the meter has digital numbers they must be
lighted at all times.
(I) Sealed Case. No person shall use, or permit to be used, or drive for hire, a taxicab equipped
with a meter, the case of which is unsealed, and which does not have its cover and gear intact.
(g) False Signal. No driver or operator of a taxicab equipped with a taximeter and while carrying
passengers, or under employment, shall display the signal affixed to such taximeter in such
position as to denote that such vehicle is not employed, or in such a position as to denote that the
driver is employed at a rate of fare different from that to which the driver is enTitled under the
provisions of this chapter. (31-01)
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52.06 CITY TAXI/LIMOUSINE DRIVER'S LICENSE.
Page lof2
CtlAPTER 52 TAXICASS AND LIMOUSINES
52.06 CITY TAXI/LIMOUSINE DRIVER'S LICENSE.
(a) Required. No person shall drive a taxicab or limousine for the purpose of carrying
passengers for hire without first obtaining a city taxi/limousine driver's license.
(b) Qualifications. An applicant for a city taxi/limousine driver's license must:
1. Be of the age of 18 years or older;
2. Possess such current license as may be required by the state and federal authorities to
operate the particuiar vehicle type;
3. Have complied with all requirements with the State of Iowa for obtaining a Class "D"
chauffeur's license;
4. Be able to speak, read and write the English language;
5. Be clean in dress and person and not be addicted to intoxicating liquor, drugs, or other
chemicai substances. No person shall drive a taxicab or limousine unless the person shall at all
times be attired in the uniform consisting of trousers and collared shirt or other uniform so
designated by the driver's company and approved by the Chief of Police or their authorized
representative. Walking shorts shall be allowed provided that they are no shorter than 2 inches
above the knee;
6. Fill out a form provided by the city, a sworn statement, giving the applicant's full name,
residence, places of residence for 5 previous years, birth date, age, height, weight, color of eyes
and hair, place of birth, driver's license number, social security number, places of previous
employment in the last 5 years, whether the applicant has within the last 5 years been convicted
of a felony or misdemeanor, and if so, whether the applicant has been convicted of an offense
involving sex abuse within the 5 years immediately preceding the date of application, whether
applicant has been convicted of more than one violation of Iowa Code Chapter 321J.2 (OWl)
within 3 years of the date of application or convicted of any moving violation which resulted in a
suspension of an operator's or chauffeur's license pursuant to Chapters 321, 321A, or 321 B of
the Code of Iowa;
7. The applicant shall not have been convicted within the past 5 years of a felony, or of a crime
involving sexual abuse, or more than one violation of Iowa Code Chapter 321J.2 (OWl) within the
3 years preceding the date of application, or convicted of any moving traffic violation which
resulted in an automatic suspension of an operator's or chauffeur's license pursuant to Chapters
321, 321A or 321 B of the Code of Iowa.
(c) Revocation or Suspension. Upon finding by the Chief of Police or their designee that any of
the requirements set forth in this chapter have been violated subsequent to the filing of the
application, the city taxi/limousine driver's license may be suspended or revoked after notice and
hearing. The license may also be suspended or revoked if the applicant provides false
information on the license application. A license revoked in one city in the metropolitan area will
not be reissued in another city until the revocation period has expired.
(d) Term and Fee. Each city taxi/limo driver's license will be for a term of 2 years and the
biannual fee shall be $6.50 for each license.
(e) Photograph. Each applicant for a city taxi/limousine license shall file with the applicant's
application 3 recent photographs, not more than 4 years old, of the applicant of a size designated
by the City Clerk. Said photographs shall be in color, taken against a solid colored background,
and shall show the applicant's full face and shoulders. One of the photographs shall be attached
to the license when issued, one shall be filed with the Police Department and one shall be filed
with the City Clerk. The photograph shall be so attached to the license that it cannot be removed
and another photograph substituted without detection. Where the application for license is
denied, the City Clerk shall return 2 of the photographs to the applicant. The Police Department
will retain one photo.
(I) Background Investigation. A background investigation of the applicant will be initiated
through the Iowa Department of Criminal Investigations. The applicant will pay for all costs
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52.06 CITY T AXIILIMOUSINE DRIVER'S LICENSE.
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associated with any background investigations.
(g) Display of Taxi/Limousine Driver's License. There shaii be properly displayed within the
vehicle the city taxi/limousine driver's iicense of the person driving such vehicle. The city taxi/limo
driver's iicense shall be affixed to such place in the vehicle designated by the Chief of Police or
their designee and produced upon request. The license shall be covered with transparent
material and must be kept clear and clean. (31-01)
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52.07 INFORMATION.
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<:;HJi,PTER 5;2 TAXICABS AND LIMOUSINES
52.07 INFORMATION.
The owner, driver, or operator of any licensed taxicab or limousine shall, upon request, give any
person the number of said vehicle, the name of the owner, driver, or operator thereof, and the
address of their place of business. (31-01)
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52.08 NO SMOKING ALLOWED.
Page 1 of 1
CI:UI,PTER 52JAXICABS AND LIMOUSINES
52.08 NO SMOKING ALLOWED.
Passengers and drivers are not allowed to smoke in taxicab or limousine vehicles. Decals or
signs must be conspicuously displayed on the inside of vehicles that read "NO SMOKING
ALLOWED IN THIS VEHICLE." (31-01)
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52.09 RATES.
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CHAPlER 52 TAXICABS AND L1MOUSINi;S
52.09 RATES.
(a) Every person owning, operating or controlling a taxicab and the driver of a taxicab within the
metropolitan area shall charge for transportation of a person or persons, from one point within the
metropolitan area to another, the fares that are set by resolution by the City Councils within the
metropolitan area upon the recommendation of the Metropolitan Area Taxicab Committee. The
Metropolitan Area Taxicab Committee shall consist of one representative of each licensed
taxicab company and a representative appointed by each city within the metropolitan area.
"Waiting time" shall be deemed to mean the time consumed while standing at the direction of the
passenger, or while waiting the arrival of the passenger at the point of call, but no charge shall be
made for the time consumed or lost because of the operator's premature response to a call.
Every person owning, operating or controlling a limousine and under contract with the Cedar
Rapids Airport Commission shall not charge more than $15.00 one way per person, and $30.00
2-way per person for transportation between points in the metropolitan area and The Eastern
Iowa Airport.
(b) After the original passenger or passengers have engaged the services of a taxicab, no
additional passenger shall be accepted by the operator of a taxicab without the express verbal
permission of the original passenger or passengers.
(c) The base rates prescribed shall be painted or affixed by decal in letters and figures at least 1
1/2 inches in height in a prominent place on either the outside metal surface of a door or similar
surface on both sides of each taxicab. Each limousine vehicle shall have their rates printed and
located in the vehicle and available upon request.
(d) No person shall charge, or attempt to charge, a passenger a higher or lower fare than that
specified by the city resolution.
(e) Any person who shall have hired a taxicab/limousine for the purpose of transporting
passengers and who shall refuse to pay the specified fare shall be guilty of a misdemeanor. (86-
05)
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52.10 ILLEGAL USE.
Page I of I
CHAPTI;R 52 TAXiCABS AND LIMOUSINES
52.10 ILLEGAL USE.
The owner. driver or operator of a taxicab or limousine shall not permit any person to occupy or
use such vehicle for the purpose of prostitution. lewdness or assignation with knowledge or
reasonable cause to know that the same is. or is to be used for such purpose. or direct. take or
transport. or offer or agree to direct. take or transport any person to any place. or to any other
person, with knowledge or reasonable cause to know that the purpose of such directing, taking,
or transportation is prostitution, lewdness or assignation. (31-01)
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52.11 SOLICIT A nON
Page 1 of 1
CHAPTER 52 T,AJ(ICABS AND LIMOUSINES
52.11 SOLICITATION
(a) Solicitation of Passenger by Drivers. No owner, operator, or driver of a taxicab or
limousine, while conducting business and accepting passengers for hire on a public street or any
other public place, shall solicit passengers for hire for a taxicab or limousine except when sitting
in the driver's compartment or while standing immediately adjacent to the curbside thereof
except, in connection with limousine counters leased at The Eastern Iowa Airport, and shall
remain in the driver's compartment or immediately adjacent to driver's vehicie at all times.
Nothing herein contained shall prohibit a driver from alighting for the purpose of assisting
passengers into or out of the vehicle or from complying with the directions of the person engaging
the taxicab or limousine regarding the loading or unloading of any baggage, goods, wares or
merchandise.
(b) Prohibited Soliciting.
1. No owner, operator, or driver shall solicit patronage in a ioud or annoying tone of voice or by
sign or in any manner annoying any person, nor by obstructing the movement of any person or
following any person for the purpose of soliciting patronage.
2. It shall be unlawful for any operator of a taxicab or limousine to solicit a passenger or
passengers for hire when said passenger or passengers have engaged another taxicab or
limousine and are awaiting the arrival of such vehicle.
(c) Solicitation of Other Common Carrier Passengers. No owner, operator, or driver shall
solicit passengers within the terminal of any other common carrier nor at any immediate points
along any established routes of any common carrier. This section is not intended to preclude a
response to any call for taxicabs or limousines made by telephone or signal from a pedestrian or
from soliciting patronage of a debarking passenger of any common carrier.
(d) Manner of Progress in Line.
1. When a taxicab conducting business by transporting or soiiciting passengers for hire at public
buildings leaves the line upon the taxicab stand, those behind it shall immediately move up and a
taxicab seeking a place on the taxicab stand shall approach the same only from the rear of the
stand and shall stop as near as practicable to the last cab in the line.
2. All limousines conducting business by transporting or soliciting passengers for hire at public
buildings shall stop and stand in the area designated for limousines if there is a marked area.
(31-01)
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52.12 REVOCATION FOR VIOLATIONS AND INJUNCTIVE REMEDY.
Page 1 of 1
CHAPT!:R 52 TAXICABS ANI;) LIMOUSINES
52.12 REVOCATION FOR VIOLATIONS AND INJUNCTIVE REMEDY.
Any violation of this code or of the laws of Iowa may be sufficient grounds for a hearing to
consider revoking any license issued to any owner. driver or operator of any taxicab or limousine.
In addition to the criminal penalties set out in the chapter codified in this chapter, the cities within
the metropolitan area may also pursue injunctive or other relief to prohibit or regulate a taxicab or
iimousine not complying with the provisions of this chapter. (31-01)
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52.13 DUTY TO CARRY ORDERLY PASSENGERS.
Page 1 of 1
CHAPTER 52 TM1CABS ANP LIMOUSINES
52.13 DUTY TO CARRY ORDERLY PASSENGERS.
No taxicab driver shall refuse or neglect to convey any orderly person or persons, upon request,
unless previously engaged or unable or forbidden by the provisions of this chapter to do so. The
driver shall, however, not be obligated to convey any person who is incapable of entering the
taxicab unassisted due to intoxication or convey any person with objectionable personal hygiene.
(31-01)
(Note: Ch. 52 adopted by Ordinance No. 31-01, passed June 6,2001 and published June 11,
2001)
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I ~ I
f~~~'t
"".o:::.....~IIIII~
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CITY OF IOWA CITymJ
MEMORANDUM
From:
September 11, 2006
City Council ^ . . ;;
Eleanor M. Dilkes, City Attorney ~v
Attendance at IMLA Conference
Date:
To:
Re:
I will be out of the office the week of September 18 attending the IMLA (International Municipal
Lawyers Association) annual conference. First Assistant City Attorney Sarah Holecek will
handle the council meetings.
cc: City Manager
Assistant City Manager
City Clerk
Sarah Holecek
eleanor/mem/lMLA06.doc
r:'1
city of iowa city
PARKS AND RECREATION DEPARTMENT
220 S. Gilbert Street
TO:
City Manager
FROM:
Terry Trueblood, Parks and Recreation Director
DATE:
September 13, 2006
RE:
Brookland Park Project
The Brookland Park re-development project is underway, and the projected completion date for
the contract is late November. Some items are being handled outside the contract in order to
save money. and may not be completed until next spring. depending on weather and delivery
dates. These items include the new playground equipment and the new picnic shelter. We are
purchasing these separate from the contract, with neighborhood input, and staff will perform the
installation.
To refresh your memory, this project includes new sidewalks and trails, changes/improvements
to the creek, improved park lighting, new park signage, a substantial amount of landscaping,
improved drainage, new playground and shelter, and miscellaneous other improvements.
As you know, this park is used as a "shortcut" for a substantial number of university students
living in the apartments west of the park. Because of the construction activities, the park is being
closed for the time being as a safety measure. This just means the students will have a little
further to walk. The contractor will open a portion of the park as soon as possible.
We anticipate some type ofre-dedication ceremony next spring/early summer.
The neighborhood association will be heavily involved in planning and carrying out this
ceremony.
r;J
Marian Karr
From: callsfyre@aol.com
Sent: Friday, September 08, 2006 3:34 PM
To: Aabadguy52240@yahoo.com; faithucc@avalon.net; stephanie@shelterhouseiowa.org;
jsmetak@hotmail.com; melissa@shelterhouseiowa.org; pat-meyer@ncjc.org; kubby@pobox.com
Cc: lisaokparainfinity@yahoo.com; alogsdon@iowacan.org; fseiberl@blue.weeg.uiowa.edu;
furortes@mchsLcom; .City Council; nancy.ostrognai@gmail.com; opinion@press-citizen.com
Subject: Fwd: Coronet Apartments-thank you for caring
Charlotte Walker,
thank you for reading my letter to the City Council re: the forced moved of the residents of Coronet
Apartments.
I do not believe that this was in the Press Citizen. Poor people just do not make the news. In some ways
Southgate Property Management has done more to take a bite out of crime by making these changes. As
property owners they have a right to do as they will, but the
City Council has another mandate: caring for the needs of all its citizens. I have heretofore heard
nothing from the Iowa City Council re: my letter, just as I heard nothing from them with my previous
letter.
Thank you for caring and lending your voice.
I, too am very interested in housing for lower income people. I am a disabled, artist, writer, and
community activist for peace and justice who also happens to live not that far away from the area. I love
the diversity, the park, and the children playing, as well as the people walking their dogs.
I just do not want to see a few bad eggs making it bad for everyone. Also, I would like to formally
challenge the rulings that allow leases to evict tenants for the poor behavior of those whom they may
have no control over either. I speak of criminal acts or alleged ones perpetrated by "guests" that can
cause the tenant, especially ifthe tenant recieves housing assistance to be forced out. I agree that one
should have control ove r visitors, but sometimes situations become complex as they do for us all and
leeches attach themselves from those least able to protect themselves.
Please contact me if you wish. I will keep you apprised as I learn more information. I expect that
HACAP Townhouses to be next in line. I fear for where people will be able to live. I respect the
owners' rightsd and this is not an attack on them. I see this as a community situation, a national one, and
one that can be solved.
For now and forever let us make peace,
CA TSDREAMS
-----Original Message-----
From: WalkerCL04@aol.com
9/8/2006
Page 2 of2
To: CallsFyre@aol.com
Sent: Sat, 2 Sep 2006 4:13 PM
Subject: Coronet Apartments
Catherine Moore: I read your letter that you sentto the City Council about Coronet Apartments. It is
posted on the city website with the agenda for the next city council meeting. I hope you get a reply from
them.
That is very bad news about the sale and the forced moves. I had not read anything about it in the Press
Citizen. Maybe I missed seeing it. I'm glad that you took time to contact the council members.
It won't be long before all of the Broadway area housing gets converted to higher cost housing. Where
will our lower income people live? Not in Iowa City, so it seems.
I am very interested in housing for lower income people. The city is making it nearly impossible for any
new lower cost housing to be developed and the older projects are getting gentrified, as you mentioned. I
will be very interested to hear how things are going for the tenants and about what the new owners are
planning to do with that property.
Thanks for taking that action and I hope others will not let this important housing matter stay a
secret. Do you live in the Broadway area or are you just an interested citizen?
Charlotte Walker
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9/8/2006
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AGENDA
City of Iowa City
City Council Economic Development Committee
Monday, September 11, 2006
9:00 a.m.
City Hall
Lobby Conference Room
410 East Washington Street
1. Call to Order
2. Approval of Sept. 5,2006 Economic Development Committee Meeting Minutes
3. Discussion of application for TlF rebate for a development project - Hieronymus
Square Associates
4. Committee time
5. Adjournment
NEXT REGULAR MEETING DATE: Sept. 19, 2006
Members Present:
Regenia Bailey, Connie Champion, Bob Elliot
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MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
SEPTEMBER 5, 2006
LOBBY CONFERENCE ROOM
Members Absent:
NONE
Staff Present:
Karin Franklin, Tracy Hightshoe, Wendy Ford
Others Present:
Kevin Digmann, Mike Hodge
CALL MEETING TO ORDER
Chairperson Bailey called the meeting to order at 9:00 AM.
APPROVAL OF MINUTES - AUG 22. 2006
MOTION: Elliot moved to approve the August 22, 2006 minutes as submitted.
Champion seconded the motion. The motion passed 3:0.
ACTIVITY REPORT. AUGUST 22 - 29.2006
Ford said she attended ICAD fund raising and Marriot opening festivities in Coralville. In
house she revised and submitted an amended FY07 Economic Development budget and
began gathering information for the Community Profile.
Ford said she worked on Hieronymus Square TIF agreements which included 3 meetings
and responded to several business inquiries.
REPORT ON CDBG ECONOMIC DEVELOPMENT FUND
Hightshoe said since 2002 CDBG has funded I I projects, 5 of which are no longer in
business. She said that 3 of the projects funded were non-profit, and one was historic
preservation related.
Hightshoe stated that she's been meeting with some lenders to determine how to be more
successful in projects that are funded. She proposed working with lenders to try to get
referrals for what lenders consider their gray area. She explained that the gray area
consists of those projects the banks are willing to fund but not fully fund.
Hightshoe presented reasons compiled by the National Development Council as to why
the focus ofCDBG funds should be small and medium sized businesses. She said that
small and medium sized businesses create 80% of all new, permanent, private sector jobs
and employ 50% of the nation's workforce. She noted small/medium businesses create
new jobs at 1/10 the cost of new jobs created by Fortune 500 companies, are productive
and profitable, and locally oriented. In addition, she noted that small businesses can
actually be quite large with up to 100-200 employees. However, she said they have thin
capital and collateral and the profits are not enough to pay bills and support new growth.
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Hightshoe said she met with the committee oflocallenders to determine ifthere would
be enough interest from the local community. She noted the information the applicants
provide to lenders is far more extensive than what the city requested.
She noted committee had concerns in regard to reporting requirements. She said if a
private business can get funds from a bank there is no need to come to the city and meet
all federal requirements, but for those businesses that can not get enough for banks are
willing to work with the city and all the requirements.
She said they noted the need to be more flexible with wage requirements especially in the
case of start-up businesses. Another concern was in regard to existing businesses. She
said that businesses are in competition with other businesses and the proforma and
balance sheet which are part of the application are then becoming public and visible for
everyone.
Hightshoe said there is currently $255,000 CDBG funds to spend.
Answering a question by Elliot, Hightshoe said that banks provide technical assistance to
businesses. Bailey said that requiring a Fast Track course would be helpful to new
businesses also.
Bailey said she is interested in pursuing the partnership with the local banks.
Elliot said that he has a problem with the statement that in order to receive CDBG
assistance 51 % of the jobs created must be held or made available to low-to-moderate
income persons based on family size. He noted that an employer can only discriminate
the employment selection in legal areas and they will want to find the best qualifying
people they can. Elliot said the committee needs to look at total compensation rather than
wage. Hightshoe said business start-up do not have a lot of experience with benefits and
therefore the city is asking for higher wages, however, for existing businesses the city
looks at total compensation.
Franklin said the committee should differentiate between the type of funds used and
requirements for each type of fund. She stated that there might be two different wage
levels and flexibility to look at benefit packages for TIF agreements versus CDBG funds.
Champion said that most start-up businesses will not provide benefits. She said the
committee should look at the whole package, but with the type of businesses applying for
CDBG funds that criterion is not applicable all the time.
Bailey said it will be a good idea to support a few people to go through the Fast Track
program. She noted that it is a good program. Franklin said that they should first try to
project how many business they could support in I year. She noted that it might not be
possible to support the Fast track course for a business unless funded. She noted the Fast
Track program might not actually be the best program. She said the staff should find out
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what business courses are available in the community and then have the committee
decide on which one to pursue.
DISCUSSION OF APPLICATION FOR TIF REBATE FOR A DEVELOPMENT
PROJECT - HIERONYMUS SQUARE ASSOCIATES
Ford said that there has been a minor change to the TIF agreement that was included in
the informational package. She said in the description, Exhibit B they discuss about the
inclusion of a hotel lobby. Ford said that the reference to the hotel and LEED certification
has been left out of the document to date.
Ford said the agreement is the outline for a TIF rebate that would be over the course of
12/13 years depending on the completion date of the project. She stated the estimated
rebate amount is based on an assessed value of property of 40 million dollars which is the
amount of minimum improvements agreed to. She said the total grant will not exceed
16.374 million dollars. Ford said that the LEED certification is not yet integrated in the
agreement but still open for discussion. Ford noted the actual components ofthe project
reference a minimum 12 story building, and a minimum investment of 40 million dollars.
She noted that there will be residential high end condominiums with no more than 3
bedrooms per unit and no more than 30% of the units having 3 bedrooms. She added the
agreement notes landscaped court yard by the building where the vehicle drop off
/passenger drop area is, streetscape improvements including street lights, trees, street
furniture and sidewalk finishes. She noted the developers wanted to evoke that the project
will not go forward without the TIF agreement.
Bailey asked how TIF rebates work for predominantly residential projects. Ford said the
project is assessed and the owners pay at either commercial or residential rates which
subject 0 rollbacks. All parts of the project will be assessed and have to pay property
taxes which will go to the TIF fund through which the City writes the checks for the
project.
Elliot said that based on the previous discussions the committee will be happy to see as
much commercial uses as possible.
Champion asked why there is a limit of not more than 3 bedrooms per unit. Franklin said
there are up to 3 bedrooms to guide this project to not become student housing. She noted
that the 3 bedrooms limit is in the zoning agreement determined by the Planning and
Zoning Commission.
IOff){
Bailey said that TIF should be a ladder to get things that would not be otherwise be
happen without the support. She added the project is not dramatically different from other
projects in the area, except that it is taller.
Kevin Digmann. Hieronymus Square Associates, said they would be excited to have a
hotel there, but the last thing they would like to do is to have occupancy rates downtown
not ready for another hotel. He said they will do the best effort to have a hotel but they
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will need to do it with diligence. Bailey said the best effort possible is expected, and they
will not like to require a hotel that will not be successful.
Franklin said she believed the agreement stated that the building could be designed as
that the floor of efficiency condominiums could be the hotel floor. She added that if the
hotel is not successful there could be some transferability from hotel to condos. She
added there will be some space on the main floor which will be the hotel lobby which
also could be translated to something else. She noted that by the construction of the
building you could have a hotel function in there. She said the language existing in the
agreement stated the developer agrees to use best efforts to establish a viable hotel in the
project. Best efforts require 'that the space be built out to facilitate use of the space as a
functioning hotel pursuing to exhibit B. She noted they need not go for the demand
because there will always be demand for residential downtown, but need to pursue best
effort to have a hotel.
Digmann said they would need to determine if the numbers match on the paper and if the
facility is built for hotel and does not go through as a hotel they will get good numbers
from efficiencies.
Elliot said he would like to see occupancy rates in downtown and determine the impact of
the new hotel in Coralville. Bailey said occupancy rates are important, but at the same
time you build the hotel and build demand. Elliot said with occupancy rates you can see
trends. Digmann said no one can predict what will happen with the demand because
market changes.
Champion said she has problems with using TlF for condominiums. She said that
efficiency condominiums are student housing. She said she is not willing to do a TlF for
all condos, and if the hotel does not work she would like those efficiencies to be
apartments and not condos.
Elliot said that previously the committee had a two-prong test for qualifying TlF projects:
quality employment and expanding the tax base. He said a third one would be
environmental design. Elliot said that it would be nice to foster cutting edge
environmental design. A fourth thing is promoting the City plan for an area. He said he
does not know how much the project will expand the tax base if it will be mainly condos,
he does not know how much employment will result, and therefore the environmental
design might be an empathize for other buildings, but this is the only asset. Elliot said he
would like to see more commercial uses in the building. He said he would like the project
to work but can not see how to justify using public funds to support it.
Franklin said that for this project the City does not invest money upfront. She said it will
add to the tax base in time. She added that a $40 million investment does not necessarily
result in a $40 million building.
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Elliot said at this point he can not justify using public money. Bailey said she is very
supportive of the project but would like to see money used for something that would not
otherwise go through without TIF funds.
Digmann said that assistance is needed to do something different. He said that the
numbers do not work without support. He said that they cannot market the building until
they know what they can have in there. He said they want to partner with the city and
they do not want to have too many limitations in the agreement.
Franklin asked if instead of specifying a hotel in the agreement it would be better to ask
for 3 floors of commercial.
Bailey said she is very interested in LEED certification and she would be interested in
further negotiations. Elliot asked if the amount ofTIF is variable at the committee's
discretion. He said that the committee would be interested in a significant TIF ifthe
building had multiple commercial floors, and in a smaller TIF for just 2 floors of
commercial space.
Bailey said she would like to see the money used for something that would not otherwise
happen. Champion said that in the long run the building will be a good asset for Iowa
City. Champion said she does not want to make demands that cannot be fulfilled, but is
concerned about the amount of condominiums that will be in the building. She added that
if the condos are targeting the student population she is bothered by the roll back. She
added that tax payers' money will be used, but there will be taxpayers' money that would
not exist if the building is not built.
Hodge said they are looking in applying energy efficiency and green practices as much as
applicable. However, he noted that LEED requirements ask that the building be smoke
free, but due to the residential character of most of the building that might not be
applicable. Hodge said their architect is LEED certified and they will try to incorporate
good practices as much as possible in a mix use building.
The committee would like further information and negotiations.
COMMITTEE TIME
Elliot said he would like to discuss about putting a cap on TIFs. Champion said there are
just a few TIF projects in Iowa City.
ADJOURNMENT
The meeting adjourned at II A.M.
NEXT MEETING DATE: Sept.12, 2006 at 10:30AM.
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AGREEMENT FOR PRIVATE REDEVELOPMENT
By and Between
THE CITY OF IOWA CITY, IOWA
AND
HIERONYMUS SQUARE ASSOCIATES
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AGREEMENT FOR
PRIVATE REDEVELOPMENT
THIS AGREEMENT FOR PRIVATE REDEVELOPMENT (hereinafter called
"Agreement"), is made on or as of the day of ,2006, by
and among the CITY OF IOWA CITY, IOWA, a municipality (hereinafter called "City"),
established pursuant to the Code ofIowa of the State ofIowa and acting under the
authorization of Chapter 403 of the Code ofIowa, 2005, as amended (hereinafter called
"Urban Renewal Act") and Hieronymus Square Associates, having an office for the
transaction of business at 711 S. Gilbert Street, Iowa City, Iowa (the "Developer").
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City
has undertaken a program for the revitalization of an economic development area in the
City and, in this connection, is engaged in carrying out urban renewal project activities in
an area known as the City-University Project I Urban Renewal Plan Area, which area is
described in the Urban Renewal Plan approved for such area by Resolution No. 01-366
dated November 13, 2001; and
WHEREAS, a copy of the foregoing Urban Renewal Plan has been recorded
among the land records in the office of the Recorder of Johnson County, Iowa; and
WHEREAS, the Developer owns or has the right to occupy certain real property
located in the foregoing Urban Renewal Area as more particularly described in Exhibit A
attached hereto and made a part hereof (which property as so described is hereinafter
referred to as the "Development Property"); and
WHEREAS, the Developer will cause certain improvements to be constructed on
the Development Property and will cause the same to be operated in accordance with this
Agreement; and
WHEREAS, the City believes that the development and continued operation of the
Development Property pursuant to this Agreement and the fulfillment generally of this
Agreement, are in the vital and best interests of the City and in accord with the public
purposes and provisions ofthe applicable State and local laws and requirements under
which the foregoing project has been undertaken and is being assisted.
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NOW, THEREFORE, in consideration ofthe premises and the mutual obligations
of the parties hereto, each of them does hereby covenant and agree with the other as
follows:
ARTICLE I. DEFINITIONS
Section 1.1. Definitions. In addition to other definitions set forth in this
Agreement, all capitalized terms used and not otherwise defined herein shall have the
following meanings unless a different meaning clearly appears from the context:
Agreement means this Agreement and all appendices hereto, as the same may be
from time to time modified, amended or supplemented.
Certificate of Completion means a certification in the form of the certificate
attached hereto as Exhibit C and hereby made a part of this Agreement, provided to the
Developer pursuant to Section 3.2 of this Agreement.
City means the City ofIowa City, Iowa, or any successor to its functions.
Code means the Code of Iowa, 2005, as amended.
Construction Plans means the plans, specifications, drawings and related documents
reflecting the construction work to be performed by the Developer on the Development
Property upon which the Minimum Improvements will be located; the Construction Plans
shall be as detailed as the plans, specifications, drawings and related documents which are
submitted to the building inspector of the City as required by applicable City codes.
County means the County of Johnson, Iowa.
Developer means Hieronymus Square Associates, a corporation.
Development Property means that portion of the City-University Project I Urban
Renewal Plan Area of the City described in Exhibit A attached hereto and incorporated
herein.
Economic Development Grants mean the Tax Increment payments to be made by
the City to the Developer under Article VIII of this Agreement.
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Event of Default means any of the events described in Section 10.1 of this
Agreement.
First Mortgage means any Mortgage granted to secure any loan made pursuant to
either a mortgage commitment obtained by the Developer from a commercial lender or
other financial institution to fund any portion of the construction costs and initial
operating capital requirements of the Minimum Improvements, or all such Mortgages as
appropriate.
Hieronymus Square - City-University Proiect I TIF Account means a separate
account within the City-University Project I Urban Renewal Tax Increment Revenue
Fund of the City, in which there shall be deposited all Tax Increments received by the
City with respect to the Minimum Improvements.
Minimum Improvements shall mean the construction of a $40 million 12-story
mixed use approximate 200,000 square foot building with all related site and streetscape
improvements as outlined in Exhibit B hereto. Minimum Improvements shall not include
increases in assessed or actual value due to market factors. The $40 million capital
investment in Minimum Improvements shall be verified via the construction contract.
Mortgage means any mortgage or security agreement in which the Developer has
granted a mortgage or other security interest in the Development Property, or any portion
or parcel thereof, or any improvements constructed thereon.
Net Proceeds means any proceeds paid by an insurer to the Developer under a policy
or policies of insurance required to be provided and maintained by the Developer, as the
case may be, pursuant to Article V of this Agreement and remaining after deducting all
expenses (including fees and disbursements of counsel) incurred in the collection of such
proceeds.
Ordinance means Ordinance No. 01-3991 of the City, under which the taxes levied
on the taxable property in the Project Area shall be divided and a portion paid into the
Iowa City Urban Renewal Tax Increment Revenue Fund.
Proiect shall mean the construction and operation of the Minimum Improvements on
the Development Property, as described in this Agreement.
State means the State ofIowa.
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City-University Proiect I Urban Renewal Tax Increment Fund means the special
fund of the City created under the authority of Section 403.19(2) of the Code and the
Ordinance, which fund was created in order to pay the principal of and interest on loans,
monies advanced to or indebtedness, whether funded, refunded, assumed or otherwise,
including bonds or other obligations issued under the authority of Section 403.9 or 403.12
of the Code, incurred by the City to finance or refinance in whole or in part projects
undertaken pursuant to the Urban Renewal Plan for the Project Area.
Tax Increments means the property tax revenues with respect to the Minimum
Improvements that are divided and made available to the City for deposit in the City-
University Project I Urban Renewal Tax Increment Revenue Fund under the provisions of
Section 403.19 of the Code and the Ordinance.
Termination Date means the date of termination of this Agreement, as established in
Section 12.8 of this Agreement.
Unavoidable Delavs means delays resulting from acts or occurrences outside the
reasonable control of the party claiming the delay including but not limited to storms,
floods, fires, explosions or other casualty losses, unusual weather conditions, strikes,
boycotts, lockouts or other labor disputes, delays in transportation or delivery of material
or equipment, litigation commenced by third parties, or the acts of any federal, State or
local governmental unit (other than the City).
Urban Renewal Plan means the Urban Renewal Plan, as amended, approved in
respect of the City-University Project I Urban Renewal Area, described in the preambles
hereof.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
Section 2.1. Representations and Warranties of the City. The City makes the
following representations and warranties:
(a) The City is a municipal corporation and political subdivision organized under
the provisions ofthe Constitution and the laws of the State and has the power to enter into
this Agreement and carry out its obligations hereunder.
(b) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
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conditions of this Agreement are not prevented by, limited by, in conflict with, or result in
a breach of, the terms, conditions or provisions of any contractual restriction, evidence of
indebtedness, agreement or instrument of whatever nature to which the City is now a
party or by which it is bound, nor do they constitute a default under any of the foregoing.
Section 2.2. Representations and Warranties of Developer. The Developer makes
the following representations and warranties:
(a) The Developer has all requisite power and authority to own and operate its
properties, to carry on its business as now conducted and as presently proposed to be
conducted, and to enter into and perform their obligations under the Agreement.
(b) This Agreement has been duly and validly authorized, executed and delivered
by the Developer and, assuming due authorization, execution and delivery by the City, is
in full force and effect and is a valid and legally binding instrument ofthe Developer
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors'
rights generally.
(c) The execution and delivery of this Agreement, the consununation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, or result in
a violation or breach of, the terms, conditions or provisions of any contractual restriction
on the Developer, evidence of indebtedness, agreement or instrument of whatever nature
to which the Developer is now a party or by which it or its property is bound, nor do they
constitute a default under any of the foregoing.
(d) There are no actions, suits or proceedings pending or threatened against or
affecting the Developer in any court or before any arbitrator or before or by any
governmental body in which there is a reasonable possibility of an adverse decision which
could materially adversely affect the business (present or prospective), financial position
or results of operations of the Developer or which in any manner raises any questions
affecting the validity of the Agreement or the Developer's ability to perform its
obligations under this Agreement.
(e) The Developer will cause the Minimum Improvements to be constructed in
accordance with the terms ofthis Agreement, the Urban Renewal Plan and all local, State
and federal laws and regulations.
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(f) The Developer will use its best efforts to obtain, or cause to be obtained, in a
timely manner, all required permits, licenses and approvals, and will meet, in a timely
manner, all requirements of all applicable local, State, and federal laws and regulations
which must be obtained or met in connection with the Project.
(g) The Developer has not received any notice from any local, State or federal
official that the activities of the Developer with respect to the Development Property may
or will be in violation of any environmental law or regulation. The Developer is not
currently aware of any State or federal claim filed or planned to be filed by any party
relating to any violation of any local, State or federal environmental law, regulation or
review procedure applicable to the Development Property, and the Developer is not
currently aware of any violation of any local, State or federal environmental law,
regulation or review procedure which would give any person a valid claim under any
State or federal environmental statute with respect thereto.
(h) The Developer will cooperate fully with the City in resolution of any traffic,
parking, trash removal or public safety problems that may arise in connection with the
construction and operation of the Minimum Improvements.
(i) The Developer would not undertake its obligations under this Agreement
without the payment by the City of the Economic Development Grants being made to the
Developer pursuant to this Agreement.
ARTICLE III. DEVELOPMENT REQUIREMENTS
Section 3.1. Minimum Improvements.
The Developer agrees to complete Minimum Improvements generally consisting of
the construction of a $40 million 12-story mixed use approximate 200,000 square foot
building and all related site and streetscape elements on the Development Property, all as
more fully described on Exhibit B hereto. Construction of the Minimum Improvements
shall commence no later than May I, 2008 and shall be completed by December I, 20 I 0
and the $40 million capital investment in Minimum Improvements shall be verified via
the construction contract. Developer agrees to use best efforts to establish a viable hotel
in the project. Best efforts require that the space be built out to enable a functioning hotel
with an option for apartments ifhotel option does not succeed, pursuant to Exhibit Band
that construction plans show such.
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The Developer shall submit all exterior changes or new construction requiring a
building permit for review and approval by the City Staff Design Review Committee.
Pursuant to this Development Agreement, the Developer shall submit a site plan for
approval by the City Manager, or hislher designee, which includes all site and streetscape
improvements.
The Staff Design Review Committee will review the project under a Level II review
under Chapter 3, Article C. Design Review of the Zoning Code, City ofIowa City within
seven (7) working days of receipt of the design plans by the Director of Planning &
Community Development. Additional criteria specific to this Project include, but are not
limited to:
. Appropriate building articulation at the street level
. Multiple entries along Burlington and Clinton streets
. Seamless integration of the private spaces at the street level with the public
sidewalk
. Streetscape improvements including textured concrete, plantings, and street
furniture, as approved by the City.
During the term of this Agreement as established in Section 12.8, any proposed new
construction on the Development Property shall be subject to approval by the Design
Review Committee before the issuance of any building permit.
Section 3.2. Energy Efficiencv.
Developer agrees to seek an Energy Efficiency certification such as LEED or Utility
Company certification.
Section 3.3. Certificate of Completion.
Upon written request of the Developer after issuance of an occupancy permit for the
Minimum Improvements, the City will furnish the Developer with a Certificate of
Completion for the Project in recordable form, in substantially the form set forth in
Exhibit C attached hereto. Such Certificate of Completion shall be a conclusive
determination of satisfactory termination of the covenants and conditions of this
Agreement with respect to the obligations of the Developer to construct such portion of
the Minimum Improvements.
A Certificate of Completion may be recorded in the proper office for the recordation
of deeds and other instruments pertaining to the Development Property at the Developer's
sole expense. If the City shall refuse or fail to provide a Certificate of Completion in
accordance with the provisions of this Section 3.2, the City shall within twenty (20) days
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after written request to the Developer, provide the Developer with a written statement
indicating with adequate detail, in what respects the Developer has failed to complete the
Minimum Improvements in accordance with the provisions of this Agreement, or is
otherwise in default under the terms of this Agreement, and what measures or acts will be
necessary in the opinion of the City, to obtain such Certificate of Completion.
Once the Certificate of Completion is issued by the City, design review on the
Minimum Improvements will cease; however, any proposed new construction on the
Development Property shall continue to be subject to approval by the Design Review
Committee before the issuance of any building permit during the term of this Agreement
as established under Section 12.8. New construction shall not include changes in signage
or minor changes in the existing structure which do not result in significant changes to the
fal;ade of the building.
ARTICLE IV. RESERVED
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ARTICLE V. INSURANCE
Section 5.1. Insurance Requirements.
(a) Upon completion of construction of the Minimum Improvements and at all
times prior to the Termination Date, the Developer shall maintain, or cause to be
maintained, at its sole cost and expense (and from time to time at the request of the City
shall furnish proof of the payment of premiums on) insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements
under a policy or policies covering such risks as are ordinarily insured through property
policies by similar businesses, including (without limitation the generality of the
foregoing) fire, extended coverage, vandalism and malicious mischief, explosion, water
damage, demolition cost, debris removal, and collapse in an amount not less than the full
insurable replacement value ofthe Minimum Improvements, but any such policy may
have a deductible amount of not more than $100,000. No policy of insurance shall be so
written that the proceeds thereof will produce less than the minimum coverage required
by the preceding sentence, by reason of co-insurance provisions or otherwise, without the
prior consent thereto in writing by the City. The term "full insurable replacement value"
shall mean the actual replacement cost of the Minimum Improvements (excluding
foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be determined and redetermined from time to
time at the request of the City, but not more frequently than once every three years, by an
insurance consultant or insurer selected and paid for by the Developer and approved by
the City.
(ii) Comprehensive general public liability insurance, including personal
injury liability for injuries to persons and/or property, including any injuries resulting
from the operation of automobiles or other motorized vehicles on or about the
Development Property, in the minimum amount for each occurrence and for each year of
$1,000,000 with a maximum deductible of $500,000.
(iii) Such other insurance, including worker's compensation insurance
respecting all employees of the Developer, in such amount as is customarily carried by
like organizations engaged in like activities of comparable size and liability exposure;
provided that the Developer may be self-insured with respect to all or any part of its
liability for worker's compensation.
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(b) All insurance required by this Article V to be provided prior to the
Termination Date shall be taken out and maintained in responsible insurance companies
which are authorized under the laws of the State to assume the risks covered thereby. The
Developer will deposit annually with the City copies of policies evidencing all such
insurance, or a certificate or certificates or binders of the respective insurers stating that
such insurance is in force and effect. Unless otherwise provided in this Article V, each
policy shall contain a provision that the insurer shall not cancel or modify it without
giving written notice to the Developer and the City at least thirty (30) days before the
cancellation or modification becomes effective. Not less than fifteen (15) days prior to
the expiration of any policy, the Developer shall furnish the City evidence satisfactory to
the City that the policy has been renewed or replaced by another policy conforming to the
provisions of this Article V, or that there is no necessity therefore under the terms hereof.
In lieu of separate policies, the Developer may maintain a single policy, or blanket or
umbrella policies, or a combination thereof, which provide the total coverage required
herein, in which event the Developer shall deposit with the City a certificate or
certificates of the respective insurers as to the amount of coverage in force upon the
Minimum Improvements.
(c) The Developer agrees to notify the City immediately in the case of damage
exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any
portion thereof resulting from fire or other casualty. Net Proceeds of any such insurance
shall be paid directly to the Developer, and the Developer will forthwith repair,
reconstruct and restore the Minimum Improvements to substantially the same or an
improved condition or value as they existed prior to the event causing such damage and,
to the extent necessary to accomplish such repair, reconstruction and restoration, the
Developer will apply the Net Proceeds of any insurance relating to such damage received
by the Developer to the payment or reimbursement of the costs thereof.
(d) The Developer shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether or not the Net Proceeds of insurance received by the
Developer for such purposes are sufficient.
ARTICLE VI. COVENANTS OF THE DEVELOPER
Section 6.1. Maintenance of Properties. The Developer will maintain, preserve
and keep its properties (whether owned in fee or a leasehold interest), including but not
limited to the Minimum Improvements, in good repair and working order, ordinary wear
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and tear accepted, and from time to time will make all necessary repairs, replacements,
renewals and additions.
Section 6.2. Maintenance of Records. The Developer will keep at all times proper
books of record and account in which full, true and correct entries will be made of all
dealings and transactions of or in relation to the business and affairs of the Developer in
accordance with generally accepted accounting principles, consistently applied
throughout the period involved, and the Developer will provide reasonable protection
against loss or damage to such books of record and account.
Section 6.3. Compliance with Laws. The Developer will comply with all laws,
rules and regulations relating to the Minimum Improvements, other than laws, rules and
regulations the failure to comply with which or the sanctions and penalties resulting
therefrom, would not have a material adverse effect on the business, property, operations,
or condition, financial or otherwise, ofthe Developer.
Section 6.4. Non-Discrimination. In operating the Minimum Improvements, the
Developer shall not discriminate against any applicant, employee or tenant because of
race, creed, color, religion, sex, national origin, sexual orientation, age, disability, marital
status or gender identity. The Developer shall ensure that applicants, employees and
tenants are considered and are treated without regard to their race, creed, color, religion,
sex, national origin, sexual orientation, age, disability, marital status or gender identity.
Section 6.5. Available Information. The Developer shall upon request provide the
City with a letter of an independent public accountant selected by the Developer to the
effect that a Certified Public Accountant has reviewed the financial statements of the
Developer which have been prepared in conformity with the federal income tax fair
market basis, that the examination of such financial statements by such accountant has
been undertaken in accordance with generally accepted auditing standards, and that the
Developer is financially capable of fulfilling its obligations under this Agreement.
Section 6.6. Continued Operation. Commencing upon the signing of the
Agreement, and with the understanding that the Development Property may be subject to
horizontal property regime, the Developer agrees that it will operate a mixed use building
occupied by commercial and residential users at the Development Property and will
continue operation of this building until at least the Termination Date set forth in Section
12.8 hereof.
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Section 6.7. Annual Certification. To assist the City in monitoring the performance
of the Developer hereunder, a duly authorized officer of the Developer shall annually
provide to the City: (a) a written statement from the County Auditor showing the amount
of Tax Increments (as defined in Section l.l of this Agreement) in respect of the
Minimum Improvements (excluding increases in assessed or actual value due to market
factors) for the following fiscal year; (b) proof that all ad valorem taxes on the
Development Property have been paid for the prior fiscal year; and (c) certification that
such officer has re-examined the terms and provisions of this Agreement and that at the
date of such certificate, and during the preceding twelve (12) months, the Developer is
not, or was not, in default in the fulfillment of any of the terms and conditions of this
Agreement and that no Event of Default (or event which, with the lapse of time or the
giving of notice, or both, would become an Event of Default) is occurring or has occurred
as ofthe date of such certificate or during such period, or if the signer is aware of any
such default, event or Event of Default, said officer shall disclose in such statement the
nature thereof, its period of existence and what action, if any, has been taken or is
proposed to be taken with respect thereto. Such statement, proof and certificate shall be
provided not later than November I of each year, commencing no later than November I,
20 II, and ending on November I, 2022 both dates inclusive. Upon the first December I
certification, the City will use the January I assessment on the Development Property to
calculate an annual increment from the followin schedule:
for NovemberlDecember Certifications in Ci uses Janu Assessment from
2010 2007
2011 2008
Prior to the November I in the year of the first certification, the Developer shall
submit the lease plan for the Development Property, with the gross leasable floor space
calculation to the City.
ARTICLE VII. ASSIGNMENT AND TRANSFER
Section 7.1. Status of the Developer; Transfer of Substantially All Assets. With the
exception of parcels subject to a residential horizontal property regime, as security for the
obligations of the Developer under this Agreement, the Developer represents and agrees
that, prior to the issuance of the Certificate of Completion and prior to the Termination
Date, the Developer will not dispose of all or substantially all of its assets or assign its
interest in this Agreement to any other party unless (i) the transferee partnership,
corporation, limited liability company or individual assumes in writing all of the
obligations of the Developer under this Agreement and (ii) the City, as represented by the
City Manager, consents thereto in writing in advance thereof. Notwithstanding the
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foregoing, however, or any other provisions of this Agreement, the Developer may pledge
any and/or all of its assets as security for any financing of the Minimum Improvements,
and the City agrees that Developer may assign its interest under this Agreement for such
purpose.
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ARTICLE VIII. ECONOMIC DEVELOPMENT GRANTS
Section 8.1. Economic Development Grants. (a) For and in consideration ofthe
obligations being assumed by the Developer hereunder, and in furtherance ofthe goals
and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal
Act, the City agrees, subject to the Developer having received a Certificate of Completion
and being and remaining in compliance with the terms of this Agreement and to the terms
of this Article VIII, to assume an obligation to make up to thirteen (13) consecutive
annual payments to the Developer commencing no later than June 1,2013 and ending on
June 1,2024, pursuant to Section 403.9 of the Urban Renewal Act, equal in amounts to
one hundred percent (100%) per fiscal year of the Tax Increments collected by the City
with respect to the Minimum Improvements on the Development Property under the terms
of the Ordinance (without regard to any averaging that may otherwise be utilized under
Section 403.19(6) and excluding any interest that may accrue thereon prior to payment to
the Developer) during the preceding twelve-month period in respect of the Development
Property and the Minimum Improvements, but subject to adjustment and conditions
precedent as provided in this Article (such payments being referred to collectively as the
"Economic Development Grants").
(b) The obligation of the City to make an Economic Development Grant to the
Developer in any year as specified above shall be subject to and conditioned upon the
timely filing by the Developer of all previous annual statements, proofs and certifications
required under Section 6.7 hereof and the City Manager's approval thereof. Beginning
with the first November 1 certification, if the Developer's annual statement, proof and
certification is timely filed and contains the information required under Section 6.7 and
the City Manager approves of the same, the City shall certifY to the County prior to
December 1 of that year its request for the available Tax Increments resulting from the
assessments imposed by the County as of January 1 of that year, to be collected by the
City as taxes and paid during the following fiscal year, shall thereafter be disbursed to the
Developer on June I of the following fiscal year. (For example, if the Developer and the
City each so certifY on November and December of2010, respectively, the first Economic
Development Grant would be paid to the Developer on June 1,2012).
(c) In the event that the annual statement, proof or certificate required to be
delivered by the Developer under Section 6.7 is not delivered to the City by November 1
of any year, the Developer recognizes and agrees that the City may have insufficient time
to review and approve the same and certifY its request for- Tax Increments to the County
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and that, as a result, no Economic Development Grant may be made to the Developer in
respect thereof.
(d) The total, aggregate amount of all Economic Development Grants under this
Agreement shall not exceed $16,374,800, which reflects a net present value of$9,162,253
at the end of the term of this agreement calculated on a discount rate of6.25%. Each
Economic Development Grant shall be equal to the sum of one hundred percent (100%)
of all Tax Increments collected per fiscal year in respect of the assessments imposed on
the Minimum Improvements as of January 1, after the first certification, and on January I
of each of the following years, until 2024 or when the total, aggregate of all such
Economic Development Grants equals no more than the sum of$16,374,800. If a final
grant based upon one hundred percent of Tax Increments would result in total, aggregate
Economic Development Grants in an amount exceeding $16,374,800, the final Economic
Development Grant shall be reduced accordingly. Such Economic Development Grants
shall at all times be subject to termination in accordance with the terms of this Article
VIII. Thereafter the taxes levied on the Minimum Improvements shall be divided and
applied in accordance with the Urban Renewal Act and the Ordinance.
(e) In the event that any certificate filed by the Developer under Section 6.7 or
other information available to the City discloses the existence or prior occurrence of an
Event of Default that was not cured or cannot reasonably be cured under the provisions of
Section 10.2 (or an event that, with the passage of time or giving of notice, or both, would
become an Event of Default that cannot reasonably be cured under the provisions of
Section 10.2), the City shall have no obligation thereafter to make any further payments to
the Developer in respect of the Economic Development Grants and may proceed to take
one or more of the actions described in Section 10.2 hereof.
Section 8.2. Source of Grant Funds Limited. (a) The Economic Development
Grants shall be payable from and secured solely and only by amounts deposited and held
in the Hieronymus Square - City-University Proiect I TIF Account of the City. The City
hereby covenants and agrees to maintain the Ordinance in force during the term hereof
and to apply the incremental taxes collected in respect of the Minimum Improvements
and allocated to the Hieronymus Square - City-University Proiect I TIF Account to pay
the Economic Development Grants, as and to the extent set forth in Section 8.1 hereof.
The Economic Development Grants shall not be payable in any manner by other tax
increment revenues or by general taxation or from any other City funds.
(b) Notwithstanding the provisions of Section 8.1 hereof, the City shall have no
obligation to make an Economic Development Grant to the Developer if at any time
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during the term hereof the City receives an opinion of its legal counsel to the effect that
the use of Tax Increments resulting from the Minimum Improvements to fund an
Economic Development Grant to the Developer, as contemplated under said Section 8.1,
is not authorized or otherwise an appropriate project activity permitted to be undertaken
by the City under the Urban Renewal Act or other applicable provisions of the Code, as
then constituted, or under a controlling decision of an Iowa court having jurisdiction over
the subject matter hereof. Upon receipt of such an opinion, the City shall promptly
forward a copy of the same to the Developer. If the circumstances or legal constraints
giving rise to the opinion continue for a period during which two (2) Economic
Development Grants would otherwise have been paid to the Developer under the terms of
Section 8.1, the City may terminate this Agreement, without penalty or other liability to
the Developer, by written notice to the Developer.
(c) The City makes no representation with respect to the amounts that may finally
be paid to the Developer as the Economic Development Grants, and under no
circumstances shall the City in any manner be liable to the Developer so long as the City
timely applies the Tax Increments actually collected and held in the Hieronymus Square.=
City-University Proiect I TIF Account (regardless of the amounts thereof) to the payment
ofthe Economic Development Grants to the Developer, as and to the extent described in
this Article.
Section 8.3. Use of Other Tax Increments. Subject to this Article VIII, the City
shall be free to use any and all Tax Increments collected in respect of increases in
valuation on the Development Property unrelated to construction of the Minimum
Improvements (i.e. increases in assessed or actual value due to market factors), or on any
other properties within the Project Area, or any available Tax Increments resulting from
the suspension or termination of the Economic Development Grants under Section 8.1
hereof, for any purpose for which the Tax Increments may lawfully be used pursuant to
the provisions of the Urban Renewal Act, and the City shall have no obligations to the
Developer with respect to the use thereof.
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ARTICLE IX. INDEMNIFICATION
Section 9.1. Release and Indemnification Covenants.
(a) The Developer releases the City and the governing body members, officers,
agents, servants and employees thereof (hereinafter, for purposes of this Article IX, the
"indemnified parties") from, covenants and agrees that the indemnified parties shall not
be liable for, and agrees to indemnity, defend and hold harmless the indemnified parties
against, any loss or damage to property or any injury to or death of any person occurring
at or about or resulting from any defect in the Minimum Improvements.
(b) Except for any willful misrepresentation or any willful or wanton misconduct
or any unlawful act of the indemnified parties, the Developer agrees to protect and defend
the indemnified parties, now or forever, and further agrees to hold the indemnified parties
harmless, from any claim, demand, suit, action or other proceedings whatsoever by any
person or entity whatsoever arising or purportedly arising from (i) any violation of any
agreement or condition of this Agreement (except with respect to any suit, action, demand
or other proceeding brought by the Developer against the City to enforce its rights under
this Agreement), (H) the acquisition and condition ofthe Development Property and the
construction, installation, ownership, and operation of the Minimum Improvements or
(Hi) any hazardous substance or environmental contamination located in or on the
Development Property.
(c) The indemnified parties shall not be liable for any damage or injury to the
persons or property of the Developer or its officers, agents, servants or employees or any
other person who may be about the Minimum Improvements due to any act of negligence
of any person, other than any act of negligence on the part of any such indemnified party
or its officers, agents, servants or employees.
(d) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements
and obligations ofthe City, and not of any governing body member, officer, agent,
servant or employee of the City in the individual capacity thereof.
(e) The provisions of this Article IX shall survive the termination of this
Agreement.
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ARTICLE X. DEFAULT AND REMEDIES
Section 10.1. Events of Default Defined. The following shall be "Events of
Default" under this Agreement and the term "Event of Default" shall mean, whenever it is
used in this Agreement, anyone or more of the following events:
(a) Failure by the Developer to cause the construction of the Minimum
Improvements to be commenced and completed pursuant to the terms, conditions and
limitations of Article III of this Agreement; or
(b) Transfer of any interest in this Agreement or the assets of the Developer in
violation of the provisions of Article VII of this Agreement; or
(c) Failure by the Developer to substantially observe or perform any covenant,
condition, obligation or agreement on its part to be observed or performed under this
Agreement; or
(d) The holder of any Mortgage on the Development Property, or any
improvements thereon, or any portion thereof, commences foreclosure proceedings as a
result of any default under the applicable Mortgage documents; or
(e) If the Developer shall:
(A) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United
States Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or
(B) make an assignment for the benefit of its creditors; or
(C) admit in writing its inability to pay its debts generally as they become
due; or
(D) be adjudicated a bankrupt or insolvent; or if a petition or answer
proposing the adjudication of the Developer as a bankrupt or its reorganization under any
present or future federal bankruptcy act or any similar federal or state law shall be filed in
any court and such petition or answer shall not be discharged or denied within ninety (90)
days after the filing thereof; or a receiver, trustee or liquidator of the Developer or the
Minimum Improvements, or part thereof, shall be appointed in any proceedings brought
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against the Developer, and shall not be discharged within ninety (90) days after such
appointment, or if the Developer shall consent to or acquiesce in such appointment; or
(f) Any representation or warranty made by the Developer in this Agreement, or
made by the Developer in any written statement or certificate furnished by the Developer
pursuant to this Agreement, shall prove to have been incorrect, incomplete or misleading
in any material respect on or as of the date of the issuance or making thereof.
Section 10.2. Remedies on Default. Whenever any Event of Default referred to in
Section 10.1 of this Agreement occurs and is continuing, the City, as specified below,
may take anyone or more of the following actions after (except in the case of an Event of
Default under subsections (e) or (f) of said Section 10.1 in which case action may be
taken immediately) the giving of thirty (30) days' written notice by the City to the
Developer and the holder of the First Mortgage (but only to the extent the City has been
informed in writing of the existence of a First Mortgage and been provided with the
address of the holder thereof) of the Event of Default, but only if the Event of Default has
not been cured within said thirty (30) days, or if the Event of Default cannot reasonably
be cured within thirty (30) days and the Developer does not provide assurances
reasonably satisfactory to the City that the Event of Default will be cured as soon as
reasonably possible:
(a) The City may suspend its performance under this Agreement until it
receives assurances from the Developer, deemed adequate by the City, that the Developer
will cure its default and continue its performance under this Agreement;
(b) The City may terminate this Agreement;
(c) The City may withhold the Certificate of Completion;
(d) The City may take any action, including legal, equitable or
administrative action, which may appear necessary or desirable to enforce performance
and observance of any obligation, agreement, or covenant of the Developer, as the case
may be, under this Agreement; or
(e) The City shall be entitled to recover from the Developer, and the
Developer shall re-pay to the City, an amount equal to the most recent Economic
Development Grant previously made to the Developer under Article VIII hereof, and the
City may take any action, including any legal action it deems necessary, to recover such
amount from the Developer.
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Section 10.3. No Remedv Exclusive. No remedy herein conferred upon or reserved
to the City is intended to be exclusive of any other available remedy or remedies, but each
and every remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver thereof, but any such
right and power may be exercised from time to time and as often as may be deemed
expedient.
Section lOA. No Implied Waiver. In the event any term or covenant contained in
this Agreement should be breached by any party and thereafter waived by any other party,
such waiver shall be limited to the particular breach so waived and shall not be deemed to
waive any other concurrent, previous or subsequent breach hereunder.
Section 10.5. Agreement to Pav Attornevs' Fees and Expenses. Whenever any
Event of Default occurs and the party who is not in default shall employ attorneys or incur
other expenses for the collection of payments due or to become due or for the
enforcement or performance or observance of any obligation or agreement on the part of
the party in default herein contained, the party in default agrees that it shall, on demand
therefore, pay to the party not in default the reasonable fees of such attorneys and such
other expenses as may be reasonably and appropriately incurred by the party not in default
in connection therewith.
ARTICLE XI. OPTION TO TERMINATE AGREEMENT
Section 11.1. Option to Terminate. This Agreement may be terminated by the
Developer if(i) the Developer is in compliance with all material terms of this Agreement
and no Event of Default has occurred which has not been cured in accordance with the
provisions of Section 10.2 hereof; and (ii) the City fails to comply with any material term
of this Agreement, and, after written notice by the Developer of such failure, the City has
failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if
such noncompliance cannot reasonably be cured by the City within ninety (90) days of
receipt of such notice, the City has not provided assurances reasonably satisfactory to the
Developer that such noncompliance will be cured as soon as reasonably possible.
Section 11.2. Effect of Termination. If this Agreement is terminated pursuant to
this Article XI, this Agreement shall be from such date forward null and void and of no
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further effect; provided, however, that the City's rights to indemnification under Article
IX hereof shall in all events survive and provided further that the termination of this
Agreement shall not affect the rights of any party to institute any action, claim or demand
for damages suffered as a result of breach or default ofthe terms of this Agreement by
another party, or to recover amounts which had accrued and become due and payable as
of the date of such termination. In any such action, the prevailing party shall be entitled
to recover its reasonable attorneys fees and related expenses incurred in connection
therewith (but only, in the case of the City, to the extent permitted by applicable law).
Upon termination of this Agreement pursuant to this Article XI, the Developer shall be
free to proceed with the construction and operation of the Minimum Improvements at its
own expense and without regard to the provisions of this Agreement.
ARTICLE XII. MISCELLANEOUS
Section 12.1. Conflict of Interest. The Developer represents and warrants that, to
its best knowledge and belief after due inquiry, no officer or employee of the City, or its
designees or agents, nor any consultant or member of the governing body of the City, and
no other public official of the City who exercises or has exercised any functions or
responsibilities with respect to the Project during his or her tenure, or who is in a position
to participate in a decision-making process or gain insider information with regard to the
Project, has had or shall have any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for work or services to be performed in connection
with the Project, or in any activity, or benefit therefrom, which is part of the Project at any
time during or after such person's tenure.
Section 12.2. Notices and Demands. A notice, demand or other communication
under this Agreement by any party to the other shall be sufficiently given or delivered if it
is dispatched by registered or certified mail, postage prepaid, return receipt requested, or
delivered personally, and
(a) In the case of the Developer, is addressed or delivered personally to
the Developer at 711 S. Gilbert Street, Iowa City, Iowa 52240.
(b) In the case of the City, is addressed to or delivered personally to the
City at City Hall, 410 E. Washington Street, Iowa City, Iowa, 52240, Attn: City
Manager; or to such other designated individual or to such other address as any
party shall have furnished to the other in writing in accordance herewith.
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Section 12.3. Titles of Articles and Sections. Any titles of the several parts,
Articles, and Sections of this Agreement are inserted for convenience of reference only
and shall be disregarded in construing or interpreting any of its provisions.
Section 12.4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 12.5. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State ofIowa.
Section 12.6. Entire Agreement. This Agreement and the exhibits hereto reflect the
entire agreement between the parties regarding the subject matter hereof, and supersedes
and replaces all prior agreements, negotiations or discussions, whether oral or written.
This Agreement may not be amended except by a subsequent writing signed by all parties
hereto.
Section 12.7. Successors and Assigns. This Agreement is intended to and shall
inure to the benefit of and be binding upon the parties hereto and their respective
successors and assigns. However, all economic development grants shall be payable only
to the Developer.
Section 12.8. Termination Date. This Agreement shall terminate and be of no
further force or effect on and after June 1,2024.
Section 12.9 Recording:. This Agreement shall be recorded at the Johnson County
Recorder's Office, Iowa City, within 30 days of execution at the expense of the
Developer.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed
in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested
by its City Clerk, the Developer has caused this Agreement to be duly executed in its
name and behalf by John Hieronymus and Michael Hodge, principals of Hieronymus
Square Associates.
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(SEAL)
CITY OF IOWA CITY, IOWA
By:
Mayor
ATTEST:
By:
City Clerk
Hieronymus Square Associates
By:
Developer\Owner
Developer\Owner
ATTEST:
By:
(title)
STATE OF IOWA )
) SS
COUNTY OF )
On this day of , 2006, before me a Notary Public in and
for said County, personally appeared Ross Wilburn and Marian Karr to me personally
known, who being duly sworn, did say that they are the Mayor and City Clerk,
respectively of the City ofIowa City, Iowa, a Municipal Corporation, created and existing
under the laws of the State ofIowa, and that the seal affixed to the foregoing instrument
is the seal of said Municipal Corporation, and that said instrument was signed and sealed
on behalf of said Municipal Corporation by authority and resolution of its City Council
and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by it voluntarily executed.
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Notary Public in and for Johnson County, Iowa
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COUNTY OF
)
) SS
)
STATE OF
On this day of , 2006, before me the undersigned, a
Notary Public in and for said County, in said State, personally appeared John Hieronymus
and Michael Hodge, principals of Hieronymus Square Associates, to me personally
known, who, being by me duly sworn, did say that the execution of said instrument to be
the voluntary act and deed, by each of them voluntarily executed.
Notary Public in and for
County,
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EXHIBIT A
DEVELOPMENT PROPERTY
The Development Property is described as consisting of all that certain parcel or parcels of
land located in the City ofIowa City, County of Johnson, State ofIowa, more particularly
described as follows:
Need Legal
With the street address of
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EXHIBIT B
MINIMUM IMPROVEMENTS
The Minimum Improvements shall consist of the construction a 12-story mixed-use
building and related site and streetscape improvements within the Development Property as
defined in Exhibit A. Said Minimum Improvements, as generally referenced by the site plan
dated DATE, and attached hereto, are subject to applicable permits and approvals. These
improvements shall include, but not be limited to, retail, office, and high-end residential
condominium uses at a minimum investment of $40 million. The building will include a
minimum of three floors of commercial retail and office development with best efforts to
include a 40-unit hotel on floors four through six, and residential units with no more than 3
bedrooms per unit and no more than 30% of the units with 3 bedrooms. The site will include
a landscaped courtyard framed by the building, which can be used as a drop-off and loading
area as well as a landscaped amenity for the development, and streetscape improvements
including trees, lights, street furniture, and sidewalk finishes, all as approved by the City.
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EXHIBIT C
CERTIFICATE OF COMPLETION
WHEREAS, the City ofIowa City, Iowa (the "City") and Hieronymus Square
Associates, having an office for the transaction of business at 711 S. Gilbert Street, Iowa
City, Iowa (the "Developer"), did on or about the day of , 2009,
make, execute and deliver, each to the other, an Agreement for Private Redevelopment
(the "Agreement"), wherein and whereby the Developer agreed, in accordance with the
terms of the Agreement, to develop and maintain certain real property located within the
City and as more particularly described as follows:
Need Legal
With the street address of
WHEREAS, the Agreement incorporated and contained certain covenants and
restrictions with respect to the development ofthe Development Property, and obligated
the Developer to construct certain Minimum Improvements (as defined therein) in
accordance with the Agreement; and
WHEREAS, the Developer has to the present date performed said covenants and
conditions insofar as they relate to the construction of said Minimum Improvements in a
manner deemed by the City to be in conformance with the approved building plans to
permit the execution and recording of this certification.
NOW, THEREFORE, pursuant to Section 3.2 of the Agreement, this is to certify
that all covenants and conditions of the Agreement with respect to the obligations ofthe
Developer, and its successors and assigns, to construct the Minimum Improvements on
the Development Property have been completed and performed by the Developer and are
hereby released absolutely and forever terminated insofar as they apply to the land
described herein. The County Recorder of Johnson County is hereby authorized to accept
for recording and to record the filing of this instrument, to be a conclusive determination
of the satisfactory termination of the covenants and conditions of said Agreement with
respect to the construction of the Minimum Improvements on the Development Property.
All other provisions of the Agreement shall otherwise remain in full force and effect
until termination as provided therein.
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(SEAL)
A TrEST:
By:
City Clerk
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
CITY OF IOWA CITY, IOWA
By:
Mayor
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On this day of , 2006, before me a Notary Public in and for
said County, personally appeared Ross Wilburn and Marian Karr, to me personally
known, who being duly sworn, did say that they are the Mayor and City Clerk,
respectively of the City ofIowa City, Iowa, a Municipal Corporation, created and existing
under the laws ofthe State ofIowa, and that the seal affixed to the foregoing instrument
is the seal of said Municipal Corporation, and that said instrument was signed and sealed
on behalf of said Municipal Corporation by authority and resolution of its City Council
and said Mayor and City Clerk acknowledged said instrument to be the free act and deed
of said Municipal Corporation by it voluntarily executed.
Notary Public in and for Johnson County, Iowa
C - 5
~
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
SEPTEMBER 5, 2006
LOBBY CONFERENCE ROOM
APPROVED
Members Present:
Regenia Bailey, Connie Champion, Bob Elliot
Members Absent:
NONE
Staff Present:
Karin Franklin, Tracy Hightshoe, Wendy Ford
Others Present:
Kevin Digmann, Mike Hodge
CALL MEETING TO ORDER
Chairperson Bailey called the meeting to order at 9:00 AM.
APPROVAL OF MINUTES - AUG 22. 2006
MOTION: Elliot moved to approve the August 22, 2006 miuutes as submitted.
Champion seconded the motion. The motion passed 3:0.
ACTIVITY REPORT. AUGUST 22 - 29. 2006
Ford said she attended ICAD fund raising and Marriot opening festivities in Coralville. In
house she revised and submitted an amended FYO? Economic Development budget and
began gathering information for the Community Profile.
Ford said she worked on Hieronymus Square TIF agreements which included 3 meetings
and responded to several business inquiries.
REPORT ON CDBG ECONOMIC DEVELOPMENT FUND
Hightshoe said since 2002 CDBG has funded 11 projects, 5 of which are no longer in
business. She said that 3 of the projects funded were non-profit, and one was historic
preservation related.
Hightshoe stated that she's been meeting with some lenders to determine how to be more
successful in projects that are funded. She proposed working with lenders to try to get
referrals for what lenders consider their gray area. She explained that the gray area
consists ofthose projects the banks are willing to fund but not fully fund.
r
Hightshoe presented reasons compiled by the National Development Council as to why
the focus of CDBG funds should be small and medium sized businesses. She said that
small and medium sized businesses create 80% of all new, permanent, private sector jobs
and employ 50% of the nation's workforce. She noted small/medium businesses create
new jobs at III 0 the cost of new jobs created by Fortune 500 companies, are productive
and profitable, and locally oriented. In addition, she noted that small businesses can
actually be quite large with up to 100-200 employees. However, she said they have thin
capital and collateral and the profits are not enough to pay bills and support new growth.
Hightshoe said she met with the committee of local lenders to determine if there would
be enough interest from the local community. She noted the information the applicants
provide to lenders is far more extensive than what the city requested.
She noted committee had concerns in regard to reporting requirements. She said if a
private business can get funds from a bank there is no need to come to the city and meet
all federal requirements, but for those businesses that can not get enough for banks are
willing to work with the city and all the requirements.
She said they noted the need to be more flexible with wage requirements especially in the
case of start-up businesses. Another concern was in regard to existing businesses. She
said that businesses are in competition with other businesses and the proforma and
balance sheet which are part of the application are then becoming public and visible for
everyone.
Hightshoe said there is currently $255,000 CDBG funds to spend.
Answering a question by Elliot, Hightshoe said that banks provide technical assistance to
businesses. Bailey said that requiring a Fast Track course would be helpful to new
businesses also.
Bailey said she is interested in pursuing the partnership with the local banks.
Elliot said that he has a problem with the statement that in order to receive CDBG
assistance 51 % of the jobs created must be held or made available to low-to-moderate
income persons based on family size. He noted that an employer can only discriminate
the employment selection in legal areas and they will want to find the best qualifying
people they can. Elliot said the committee needs to look at total compensation rather than
wage. Hightshoe said business start-up do not have a lot of experience with benefits and
therefore the city is asking for higher wages, however, for existing businesses the city
looks at total compensation.
Franklin said the committee should differentiate between the type offunds used and
requirements for each type of fund. She stated that there might be two different wage
levels and flexibility to look at benefit packages for TIF agreements versus CDBG funds.
Champion said that most start-up businesses will not provide benefits. She said the
committee should look at the whole package, but with the type of businesses applying for
CDBG funds that criterion is not applicable all the time.
Bailey said it will be a good idea to support a few people to go through the Fast Track
program. She noted that it is a good program. Franklin said that they should first try to
project how many business they could support in I year. She noted that it might not be
possible to support the Fast track course for a business unless funded. She noted the Fast
Track program might not actually be the best program. She said the staff should find out
2
what business courses are available in the community and then have the committee
decide on which one to pursue.
DISCUSSION OF APPLICA TroN FOR TIF REBATE FOR A DEVELOPMENT
PROJECT - HIERONYMUS SOUARE ASSOCIATES
Ford said that there has been a minor change to the TIF agreement that was included in
the informational package. She said in the description, Exhibit B they discuss about the
inclusion of a hotel lobby. Ford said that the reference to the hotel and LEED certification
has been left out of the document to date.
Ford said the agreement is the outline for a TIF rebate that would be over the course of
12/13 years depending on the completion date of the project. She stated the estimated
rebate amount is based on an assessed value of property of 40 million dollars which is the
amount of minimum improvements agreed to. She said the total grant will not exceed
16.374 million dollars. Ford said that the LEED certification is not yet integrated in the
agreement but still open for discussion. Ford noted the actual components of the project
reference a minimum 12 story building, and a minimum investment of 40 million dollars.
She noted that there will be residential high end condominiums with no more than 3
bedrooms per unit and no more than 30% of the units having 3 bedrooms. She added the
agreement notes landscaped court yard by the building where the vehicle drop off
/passenger drop area is, streetscape improvements including street lights, trees, street
furniture and sidewalk finishes. She noted the developers wanted to evoke that the project
will not go forward without the TIF agreement.
Bailey asked how TIF rebates work for predominantly residential projects. Ford said the
project is assessed and the owners pay at either commercial or residential rates which
subject 0 rollbacks. All parts of the project will be assessed and have to pay property
taxes which will go to the TIF fund through which the City writes the checks for the
project.
Elliot said that based on the previous discussions the committee will be happy to see as
much commercial uses as possible.
Champion asked why there is a limit of not more than 3 bedrooms per unit. Franklin said
there are up to 3 bedrooms to guide this project to not become student housing. She noted
that the 3 bedrooms limit is in the zoning agreement determined by the Planning and
Zoning Commission.
Bailey said that TIF should be a ladder to get things that would not be otherwise be
happen without the support. She added the project is not dramatically different from other
projects in the area, except that it is taller.
Kevin Digmann. Hieronymus Square Associates, said they would be excited to have a
hotel there, but the last thing they would like to do is to have occupancy rates downtown
not ready for another hotel. He said they will do the best effort to have a hotel but they
3
will need to do it with diligence. Bailey said the best effort possible is expected, and they
will not like to require a hotel that will not be successful.
Franklin said she believed the agreement stated that the building could be designed as
that the floor of efficiency condominiums could be the hotel floor. She added that if the
hotel is not successful there could be some transferability from hotel to condos. She
added there will be some space on the main floor which will be the hotel lobby which
also could be translated to something else. She noted that by the construction of the
building you could have a hotel function in there. She said the language existing in the
agreement stated the developer agrees to use best efforts to establish a viable hotel in the
project. Best efforts require that the space be built out to facilitate use of the space as a
functioning hotel pursuing to exhibit B. She noted they need not go for the demand
because there will always be demand for residential downtown, but need to pursue best
effort to have a hotel.
Digmann said they would need to determine if the numbers match on the paper and if the
facility is built for hotel and does not go through as a hotel they will get good numbers
from efficiencies.
Elliot said he would like to see occupancy rates in downtown and determine the impact of
the new hotel in Coralville. Bailey said occupancy rates are important, but at the same
time you build the hotel and build demand. Elliot said with occupancy rates you can see
trends. Digmann said no one can predict what will happen with the demand because
market changes.
Champion said she has problems with using TIF for condominiums. She said that
efficiency condominiums are student housing. She said she is not willing to do a TIF for
all condos, and if the hotel does not work she would like those efficiencies to be
apartments and not condos.
Elliot said that previously the committee had a two-prong test for qualifYing TIF projects:
quality employment and expanding the tax base. He said a third one would be
environmental design. Elliot said that it would be nice to foster cutting edge
environmental design. A fourth thing is promoting the City plan for an area. He said he
does not know how much the project will expand the tax base if it will be mainly condos,
he does not know how much employment will result, and therefore the environmental
design might be an empathize for other buildings, but this is the only asset. Elliot said he
would like to see more commercial uses in the building. He said he would like the project
to work but can not see how to justifY using public funds to support it.
Franklin said that for this project the City does not invest money upfront. She said it will
add to the tax base in time. She added that a $40 million investment does not necessarily
result in a $40 million building.
4
Elliot said at this point he can not justify using public money. Bailey said she is very
supportive of the project but would like to see money used for something that would not
otherwise go through without TIF funds.
Digmann said that assistance is needed to do something different. He said that the
numbers do not work without support. He said that they cannot market the building until
they know what they can have in there. He said they want to partner with the city and
they do not want to have too many limitations in the agreement.
Franklin asked if instead of specifying a hotel in the agreement it would be better to ask
for 3 floors of commercial.
Bailey said she is very interested in LEED certification and she would be interested in
further negotiations. Elliot asked if the amount ofTIF is variable at the committee's
discretion. He said that the committee would be interested in a significant TIF if the
building had multiple commercial floors, and in a smaller TIF for just 2 floors of
commercial space.
Bailey said she would like to see the money used for something that would not otherwise
happen. Champion said that in the long run the building will be a good asset for Iowa
City. Champion said she does not want to make demands that cannot be fulfilled, but is
concerned about the amount of condominiums that will be in the building. She added that
if the condos are targeting the student population she is bothered by the roll back. She
added that tax payers' money will be used, but there will be taxpayers' money that would
not exist if the building is not built.
Hodge said they are looking in applying energy efficiency and green practices as much as
applicable. However, he noted that LEED requirements ask that the building be smoke
free, but due to the residential character of most of the building that might not be
applicable. Hodge said their architect is LEED certified and they will try to incorporate
good practices as much as possible in a mix use building.
The committee would like further information and negotiations.
COMMITTEE TIME
Elliot said he would like to discuss about putting a cap on TIFs. Champion said there are
just a few TIF projects in Iowa City.
ADJOURNMENT
The meeting adjourned at I I A.M.
NEXT MEETING DATE: Sept. 12, 2006 at !0:30AM.
5
Council Economic Development Committee
Attendance Record
2006
I Term
I Name Expires 1/18 2/16 3/10 3/15 3/30 4/4 6/27 7/18 8/22 9/5
I Rel!enia Bailev 01/02/08 X X X X X X X X X X
Bob Elliott 01/02/08 X X X X X X X X X X
Connie Champion 01/02/08 OlE X X X X X X X X X
Key:
I X = Present
I 0 = Absent
,
OlE = Absent/Excused
,
I
i
I
6
!
-.T. p .
Marian Karr
From:
Sent:
To:
Subject:
alankemp@iowaleague.org
Monday, September 18, 20062:30 PM
alankemp@iowaleague.org
University and College City Forum
A meeting of the University and College City Forum is scheduled for Wednesday, September
27, 2006 at the Marriott Hotel and Convention Center, 300 East 9th Street in Coralville.
The meeting will be held from 9:00 to 11:00 a.m. in the Borlaug Room. The Forum was
established in 2003 to provide a way for cities that are home to educational institutions
to meet and discuss the unique issues and benefits that they share.
While the forum is scheduled in conjunction with the first day of the League's Annual
Conference and Exhibit, you do not need to register to attend this meeting. Topics on the
agenda include a presentation by Steve Atkins, the City Manager of Iowa City, on his
observations and experiences with managing a city with a large academic institution. We
will also hear from Dick Crayne, the City Administrator in Waverly describe the unique
relationships that his city has with Wartburg College. In addition, there will be time for
the typical open-ended discussion that this group finds so valuable.
Even if no one from your city is registered to attend the Iowa League of Cities Annual
Conference and Exhibit, please consider having someone from your city join us for this
meeting of the University and College City Forum.
I hope to see you there.
Alan W. Kemp
Director of Membership Services
Iowa League of Cities
317 Sixth Avenue, Suite 800
Des Moines, IA 50309
(515) 244-7282
(515) 2440740 FAX
www.iowaleague.org
1
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
TUESDAY, AUGUST 15, 2006, 6:30 P.M.
FAMILY RESOURCE CENTER, GRANT WOOD SCHOOL
PRELIMINARY
UW
Members Present:
Jerry Anthony, Marcy DeFrance, Holly Hart, Matthew Hayek, Brian Richman,
Michael Shaw
Members Absent:
William Greazel, Thomas Niblock
Staff Present:
Tracy Hightshoe, Steve Long
Call to Order
Anthony called the meeting to order at 6:35 p.m.
Minutes
MOTION: Hayek moved to accept the minutes as written. Shaw seconded, and the motion carried on a
vote of 6-0.
Public Discussion
Long thanked the commission members for attending the Community Development Celebration event.
New Business
Discussion of COSG and HOME Investment Policies and Council Earmarks
Long distributed the original policy resolutions for the commission members' reference. He said the
commission typically looks at the policies annually, and also talks to the agencies to see how well the
policies are working. Currently there are four earmarked amounts. 1) To cover administrative costs; this
amount is designated by HUD, 2) Aid to Agencies; this started in 1994 and combined with city funds
provides an allocation to approximately 14-16 human service agencies annually 3) economic
development funds, and 4) housing rehabilitation. These were all explained in the memo to the
commission members sent with the meeting packet.
Richman asked what the commission should be discussing in regards to the earmarks. Long said some
council members are questioning whether having the commission allocate $14K for public services is a
good use of the commission's time. The city has approximately 14 agencies the council funds through a
review and recommendation process. One issue with the council's process is that it is difficult for new.
projects to get funding. On the other hand, though new projects are more likely to be funded through the
HCDC process, it takes a lot of time for the commission to allocate a small amount of money.
Long said he sees three options for the $14K. 1) The commission requests more funding for this
category, 2) the council takes over allocating the $14K along with the other $105K, or 3) leave things as
they are. He said the discussion is intended to find out the commission's view. The amount of money that
will be ieft over from those allocations in the future is unknown at this point, but it will probably be
approximately the same next year.
Hayek asked whether the amounts of money the council allocates are static. Long said usually a cost of
living increase is given every year, and the amount also depends on how long the agency has been on
the list. They are currently shifting into a performance-based system.
Richman asked how the council allocates the money. Long said there is no formal application, it is not
competitive or political. The council members who take care of the process review the agencies and
make a recommendation to the council on the amounts.
Hayek asked whether this system was set up to ensure stability for certain agencies, to consistently
receive an annual income. Long said the original purpose is unknown, as no documentation is available.
Hightshoe said that the funding is fairly stable, since the $105K taken off the top remains the same even
though totai CDBG funding has been decreasing.
Long said there Is a perception that there is double-dipping, because some agencies have several
different programs that could also receive funding through the commission's application process. He
noted that the HCDC process Is much more public. Shaw asked if the list of agencies receiving money
Heusing and Cemmunity Develepment Cemmissien Minutes
August 15,2006
Page 2
frem the ceuncil allecatien is fermally neted semewhere and available fer review. Hightshee said yes,
there is a list. Leng said the cemmissien ceuld recemmend that the ceuncil make its process mere public.
Richman said the HCDC system is transparent and accountable. Long said at least one council member
would like more openness, and perhaps even an open hearing. Richman asked if it would be beneficial
fer the agencies te have twe applicatien precesses te deal with. Hayek said he dees net have a preblem
with having the ceuncil recapture the $14K. It dees net make sense te have the HCDC take ever such a
small amount. It weuld make mere sense te give up the allocatien .of that part .of the meney completely, .or
te get mere meney. $14K is net a geed use .of the cemmissien's time.
Shaw noted that if the funding trend centinues, seen the public services meney that the cemmissien
allecates weuld be gone. Hayek said it is good te have guidance and .oversight .of allocating the meney.
Antheny agreed that the ameunt .of meney is net werth the ameunt of time it takes te allecate it.
Hayek said if the ceuncil centinues te allecate the funds, .opening mere meney te new agencies and
projects weuld be geed. Richman said whether the ameunt .of meney will increase is unknewn, and he is
unsure abeut whether sending all the money and allocatien inte an unknown system is a geed idea. Shaw
said it weuld be easier te make an infermed decisien abeut this if the reasen fer the current system was
knewn. Richman agreed it is difficult te evaluate an unknewn process and unknewn list .of agencies. It
dees not make sense te put additienal funds inte an unknewn system.
Shaw said the reasens fer the current arrangement might be very geed, but since they are unknewn, it is
impessible te make that judgment. Richman said the eptiens currently are te give the $14K back te
ceuncil, ask the ceuncil to give the cemmissien mere meney fer the public service categery, or te centinue
with the status que. He added that he would prefer net to give up the meney, but cannot decide between
the twe ether eptiens.
Antheny asked if a decisien ceuld be deferred fer new. Leng said he weuld be talking te the ceuncil seen
regarding this topic. He said he has the impressien that twe ceuncil members believe it weuld be mere
efficient fer the ceuncil te handle all public service meney. Richman said with the current level .of funding,
that is cerrect, but things might change in five years as well.
Hightshee said the ameunt ceuld be determined by percentages instead .of a set ameunt. Hayek said that
weuld defeat the purpese .of the fund, if it were intended te previde a steady inceme stream te the
agencies. He asked if all agencies en the list are assured .of funding. Leng said ne, the allecatiens are
beceming mere perfermance based. Alse, the list has been pruned in the past.
Richman said he would like to knew mere abeut the council precess before deciding. Hayek asked staff te
let ceuncil knew that HCDC shares their cencerns abeut the current system efficiency, and are interested
te hear their theughts en the purpese and precess. Shaw said he weuld rather net have the funds ge inte
an unknewn precess. Leng cenfirmed that the cemmissien members prefer a transparent and cempetitive
process. Hayek neted that the ether ceuncil members might net even want additienal respensibility .of the
fund allecation.
Hightshee said the agencies en the list weuld be nerveus abeut a cempetitive precess. Leng neted that
agencies en the bettem .of the list weuld be happy abeut it. Richman said he dees net have a big preblem
with the status que. Hewever, a change might be beneficial te the agencies that receive the meney. Hart
agreed she weuid like te knew mere abeut the precess and intent behind it befere making a
recemmendation.
Richman summarized that the cemmissien weuld like te knew what agencies are currently en the list, hew
new agencies get put en the list, and hew decisiens abeut distributing meney are made. Hayek clarified
that he weuld like te knew whether the percentages .of funding for each agency change, and whether the
precess is at all cempetitive. Alse, what cenventienal wisdom drives the decisien-making.
Antheny asked alse fer clarificatien en what happens if the ceuncil takes ever allecatien .of the remaining
funds. Shaw asked whether the cemmissien ceuld ask the ceuncil te wait en making a decisien until mere
infermatien is available. Leng said the cemmissien can request that. Hayek suggested asking the ceuncil
te make their precess mere open. Richman reiterated that the cemmissien needs mere infermatien en the
current precess befere making a recommendation te ceuncil.
Economic Development
Long summarized the meme by saying though ecenomic develepment funds are calculated at nine
percent of the total annual allocatien, the money is actually oniy taken from CDBG allocation because
HOME funds cannot be used fer this purpose. There is currently approximately $244K in the lean fund,
Housing and Community Development Commission Minutes
August 15,2006
Page 3
and the CDBG allocation is shrinking. The commission could keep the current level of funding at nine
percent, but clarify that the percentage should be calculated from the CDBG allocation only. That would
reduce the amount of money going into the fund annually.
Anthony asked how long money can stay in the loan fund. Long said there is no time limit. Hightshoe said
the fund has not been marketed to potential applicants very much. She said the plan is to change the
focus and work with other lending institutions more and do gap funding, in order to find better-qualified
applicants. Richman said since not all the economic development money has been spent and this pot of
funding exists, it makes sense to decrease the annual allocation.
MOTION: Richman moved to recommend clarification of the City Council Resolution 01-367 to state that
nine percent allocation of funding for economic development be calculated using only the CDBG funds.
Hart seconded.
Hayek asked where housing contingency funds come from. Long said combined HOME and CDBG
money. He added that an asterisk with a note would be added to indicate the clarification. Hightshoe
asked if this would be intended for the upcoming allocation year, or the next. Long said 2007.
Hayek asked for clarification that approximately $140K is set aside for economic development every year.
Long said yes. Hightshoe said some was diverted one year to the Family Resource Center. Hayek asked
why there is money still in the loan fund. Long said that the regulations governing the funds can be a
deterrent, but marketing the program will help increase awareness and interest in it. Hightshoe said the
hope is to do more business expansions and gap funding, ultimately to decrease the risk the City takes
when awarding funding to a business and provide permanent, stable jobs to low-to-moderate income
persons.
Anthony asked what the application process is to receive funds. Hightshoe said applications go to the
Economic Development Commission. Long said it is not very competitive because there are relatively few
applications. He added that since the nine percent is currently based on both CDBG and HOME funds, it
turns out that approximately 15 percent of CDBG funds go into economic development.
Richman said it seems as though the program is not being utilized well, so it would make sense to put
money where it can be allocated. Anthony said he is also concerned that there is no limit on how long
money can remain in the fund. Richman said guesses can be made on the original intent of the policy, but
the question is what the best decision would be for the current situation.
Long said the original intent was to set up a pool of money that prospective businesses could tap into. It
would be a revolving loan fund, so applications could be taken at any time. Shaw asked how applicants
would be affected by this clarification. Long said ultimately less money would go into the fund, so less
money would be available over time. Hightshoe said the applications that have been funded in the past
have typically been about $25K to $30K.
Richman said that based on the current information, decreasing the amount going into the loan fund
would have no significant effect. At this time, though, there is enough money to fund the current demand.
He added if there is a need for more funds at a later date, further adjustments could be made then. Hayek
asked whether word about the fund has been communicated. Long said yes, ICAD knows. Hightshoe said
a campaign has not gone out to lenders, however. Hayek said he is concerned whether the demand will
remain the same if advertising increases.
Hightshoe said it would reduce the amount flowing into the fund. Shaw suggested making changes if
demand has not changed after two years of increased marketing. Hayek said it would make sense to
market it more, and then if there is no increase in activity, reduce the amount going in. Richman said that
the availability of economic development funds is only part of a decision to start a small business. He said
marketing the program might not increase the number of applicants.
VOTE: Richman's motion carried on a vote of 5-1, Hayek dissenting.
COSG and HOME Program Investment Policies
Long said that the current policy designates a zero percent loan for non-profit organizations (NPO)
providing rental services. This is good for programs with an income from rent, which can be used to pay
back the loans. However, HACAP cannot pay back loans since they house homeless families who
generally do not have incomes. Staff is recommending the policy to be tweaked to allow for Conditional
Housing and Community Development Commission Minutes
August 15,2006
Page 4
Occupancy loans (COl). As long as the organization is providing the services specified in the loan
agreement, the funding would be considered a grant.
Anthony asked for confirmation that the NPO would have to pay back the loans if they stop operations or
move. long said yes. He noted that tweaking the policy in this way could decrease the amount of money
being recycled back through the system through loan repayment revenue.
Hayek asked who would get eOLs. Long said public facilities. He added that some agencies with income
streams could pay back their loans with interest, but the system does not have the flexibilities to address
that side either. The intent is to try to sustain programs and also support the NPOs.
Hayek asked if any other groups besides HACAP would qualify for this. Hightshoe said possibly DVIP.
Richman asked whether HUD defines the term "transitional housing." Long said yes, the maximum stay in
this type of housing is 24 months, during which time residents meet with counselors to work on stabilizing
their situation and generating income. DeFrance asked what happens if an agency cannot pay back a
loan. Long said foreclosure is an option, though it is likely the loan would be forgiven.
DeFrance asked why one organization would receive special terms. Long said it would be good to be able
to evaluate each organization's ability to repay the loan individually. Right now the policy does not have
that flexibility. Hayek asked whether Emergency Housing would also fall in this category. long said yes,
that type of housing usually receives declining balance loans or eOLs.
Shaw asked whether the commission could recommend reevaluation of the policy, to allow discretion on
what type of loan to apply. Anthony asked whether this flexibility existed in policies before. Long said yes.
Richman said it sounds likes the commission should reevaluate the policies as a whole, rather than
piecemeal. He said the other effect of this sort of policy revision is that the commission would have to
decide what kind of loan each project would get at the time of allocation decisions, which would take time.
Long said applicants can always ask for an amendment from council after the loan is given, though that is
not widely known. Shaw agreed that it would make more sense to look at the policies overall. There are
overarching issues that come along with discretionary power. Anthony agreed with having the
commission revisit the issue later in a larger context.
Hightshoe asked whether the commission members wouid like staff to do a preliminary evaluation and
make a suggestion to the commission, or if the commission would like to discuss it. Hayek said he wouid
prefer to have staff provide a starting point. Shaw said he would also like to know what the impact would
be on staff if a revised policy were adopted.
Discussion of Design Standards for Federally Assisted Housing Projects
Hightshoe noted this was discussed briefly at a previous meeting. There are currently no set standards
for staff to use when evaluating housing proposals. The agreements state that the city must approve the
design before the developer can obtain a building permit, but yet provides no base standards to evaluate
the designs submitted. The code currently has basic design standards for multi-family housing, but not
for single family/duplex homes. These guidelines are intended to ensure that the house fits into the
neighborhood. She suggested having staff work with the Planning and Zoning Commission to create a
proposal for HCDe to evaluate.
Shaw ieft at this point.
long said the intent is not for staff to police designs, but there have been some complaints about funded
housing that does not blend into the neighborhood. Having standards would give staff some leverage
when raising concerns with the developers.
Hart asked whether the problems have been with the house design or the neighbors. Hightshoe said
both. long said some houses have obviously not fit in. Hayek said having staff present a proposal for
review is fine. He stated though standards might increase the price, housing should blend with the
neighborhood where it is placed. Hightshoe said if a subsidized housing in a neighborhood does not "fit"
in, it can create resistance in other neighborhoods as well. The purpose of basic design standards would
hopefully be to reduce neighborhood resistance to affordable housing as well as not stigmatize the house
as "assisted."
Housing and Community Development Commission Minutes
August 15,2006
Page 5
Shaw returned at this point.
Anthony recommended having staff explore the idea and come back to the commission with a proposal.
He confirmed these would be part of the contract with the developer receiving the funds. Hightshoe said
yes. She added staff would like to have this in place for the fiscal year 2008 projects. .
Old Business
Amendment to HCDC Bylaws, Specifically Article 4 Section B, Article 6, and Application Form
Anthony noted this is the mandatory second discussion on whether to change the bylaws. Hightshoe
reviewed the discussion of the option to remove reference to HUD, leave preferences as currently stated,
but remove reference to the Local Homeless Coordinating Board representative.
Hayek asked about potential conflicts of interest with commission members who have received rental
assistance. Richman suggested recusing those people from the relevant parts of the allocation
discussion. Anthony noted that rental assistance discussion also has impact on the overall decisions, so
recusing from parts of the meetings would not be effective. Hayek noted it would be very unlikely to have
someone invoived in the commission with that particular conflict of interest.
Hart asked if there was a reason to remove the category questions. Hightshoe said they are not required
as well some may feei they are too personal or should be considered private.
MOTION: Hayek moved to amend the bylaws to remove the reference to HUD, remove the Local
Homeless Coordinating Board representative, leave all other preferences as stated, and remove the
demographics questionnaire section of the application, except for low income. DeFrance seconded, and
the motion carried on a vote of 6-0.
Monitorina Reoorts
Johnson County Permanent Supportive Housing LP - Affordable Rental (FY06)
Hightshoe reported they did receive a tax credit and plan to begin building soon. There are some access
issues because of the highway, but financing is arranged.
Housing Fellowship - Affordable Homeownership (FY03 and FY06)
Hightshoe reported the money has been spent for FY03, purchasing two duplexes. They also purchased
and renovated a house on Stanford Avenue.
Housing Fellowship - Affordable Rental (FY05 and FY06)
Hightshoe reported that they are currently looking for lots for FY06.
Adiournment
MOTION: Hayek moved to adjourn. Shaw seconded and the motion carried on a vote of 6-0. The meeting
was adjourned at8:15.
s/pcd/minutes/HCDC/2006/0B-1S.06 HCDC.doc
Housing & Community Development Commission
Attendance Record
2006
I
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Term
Name Expires 01119 02/16 03/09 03/23 03/29 04/20 07/20 08/15
Brian Richman 09/01/07 X X X X X X X X
Holly Jane Hart 09/01/07 -- -- -- -- -- -- -- -- -- -- -- -- X X
Jerrv Anthony 09/01/08 X X X X X X X X
Kelly Mellecker 09/01/08 OlE X X X X X X -- --
Lori Bears 09/01/07 X OlE X -- -- -- -- -- -- -- -- -- --
Marcy De France 09/01/09 -- -- -- -- -- -- -- -- -- -- -- -- X X
Matthew Hayek 09/01107 OlE X X X OlE X X X
I Michael Shaw 09/01/06 X X X X X X X X
Thomas Nihlock 09/01108 X X X OlE OlE X OlE OlE
William Greazel 09/01106 OlE X X X X X X OlE
Yolanda SDears 09/01/06 -- -- X -- -- -- -- -- -- -- -- -- -- -- --
I Key:
I X = Present
! 0 = Absent
i OlE = Absent/Excused
I NM = No Meeting
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i -- -- = Not a Member
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