HomeMy WebLinkAbout2006-10-03 Transcription
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ITEM 2 PROCLAMATIONS.
a) Fire Prevention Week: October 8-14, 2006
Wilburn: (reads proclamation)
Karr: Here to accept the proclamation is Iowa City Firefighter, Eric Nurnberg.
(applause)
Numberg: Thank you, Mr. Mayor and Council. I would just like to reiterate what the
Mayor said, and that is that year after year, unattended cooking is the
leading cause of structure fires in the home, both nationally and here in
Iowa City, and therefore, the theme ofthis year's Fire Prevention Week is
"Watch What You Heat" and prevent fires in the home, and I'd just like to
tell you that during Fire Prevention Week coming up the 8th through the
14t\ the Iowa City Fire Department will be working very hard to educate
the citizens ofIowa City - that if we (unable to understand) what we eat
and never leave cooking unattended, we will realize a dramatic reduction
in home fire structures. Again, thank you very much for this
proclamation.
Wilburn: Thank you.
Vanderhoef: Eric? I'd just like to tell you a quick story of what I did as a new bride. I
cooked the cookbook! (laughter)
O'Donnell: I'm glad that went there! (laughter)
Vanderhoef: I laid it on a gas stove and the pilot light hit it, and Betty Crocker got
totally singed while I was standing right beside it baking cookies.
Nurnberg: That's funny, but it's also very appropriate (laughter).
Vanderhoef: I know!
Numberg: ... the cause of many structure fires in the home are flammable materials
that are too close to the burners of the stove, like cookbooks or paper
towels or even pot holders and so thank you for sharing that. (laughter
and several talking)
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 3, 2006.
#3
ITEM 3
Wilburn:
Ukah:
Kittrell:
Magzoub:
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OUTSTANDING STUDENT CITIZENSHIP AWARDS -
ROOSEVELT ELEMENTARY
This is a...I guess it's fall, at the beginning of the year, when we start
announcing the Outstanding Citizenship Awards. This will be a first for
us. I'd like to have Jackie Stubbers from our Youth Advisory
Commission come up and assist me in presenting the awards to the
students from Roosevelt Elementary, and if those students could come
forward, please. Well, thanks for coming down and congratulations on
your awards. What I'd like to have you do is I'll give you the microphone
here. Please state your name and I think each of you have a statement.
Let us know what you've been up to. So, we'll start with you.
Hi, my name is Chike Ukah and I am a 5th grader at Roosevelt
Elementary, and I think I'm a good citizen because I'm responsible, hard
working, and I always try to do my best. I try to be a good role model by
being the best I can be at all times and not only at school. I volunteer in
the community by preparing and serving food for the homeless. I'm also a
(unable to understand) at Roosevelt Elementary School. (applause)
My name is Morgan Kittrell. I am a 6th grader at Roosevelt School. I
have participated in many volunteer groups. One is MOE, Money
Offering Effort. The group raises money by making crafts and selling
food at church and other places. We use the money to donate to causes,
such as Kids With No Shoes. Every year at church, I choose to donate a
gift for a child. This gift is given to the Salvation Army for distribution. I
have volunteered at the Library to put packets together for newborn
babies. I have also shelved books and worked on other projects, such as
cutting out pieces of paper for special days. I have also attended a work
camp in South Dakota for the last two years. At school, I participate in
Safety Patrol and have been on the Peer Assistance Team. I am also a
Texpert. Volunteering is very important to me. Thank you. (applause)
Hello. My name is Majed Magzoub and I'm a 6th grader at Roosevelt
School. How I exhibit citizenship in my school is by helping other kids
out with projects they might be having difficulty in. I lend my supplies to
classmates who might not have any. I also get to know new students and
show them around the school. I try and be helpful to substitute teachers in
any way I can. Last year, I willingly helped out a younger student on my
bus that was having trouble with being safe. I also have participated in the
Peer Assistance Team. Outside of my school, I help kids out with their
soccer. I help carry groceries for my neighbors. I help my mom out by
distributing food to the neighbors. I also help around the neighborhood
when neighbors are moving by carrying their furniture, and at home, I
clean my room and help my mom clean the house. (applause)
This represents only a reasonably accurate transcription ofthe Iowa City City
Council meeting of October 3, 2006.
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Stubbers:
Wilburn:
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I'm just Jackie Stubbers from the Youth Advisory Commission. So...
First time... we didn't get the choreography down here yet! (laughter)
Well, again, I just want to say congratulations to all of you. The
community is very proud of you and everything that you've done. We
really appreciate it when young people like yourselves give back to the
community. It's a role model for us adults, so thank you. I'll read one
award and they all say the same thing, except they have your own names
on them. So, Citizenship Award for his outstanding qualities ofleadership
within Roosevelt Elementary, as well as the community, and for his sense
of responsibility and helpfulness to others, we recognize...is it Chike?
Ukah? Thank you. And as an outstanding student citizen, your
community is proud of you. Presented by the Iowa City City Council.
Congratulations, and thank you. (applause) Morgan, congratulations.
Majed, congratulations, and thank you. (applause)
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Council meeting of October 3, 2006.
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ITEM 4 CONSIDER ADOPTION OF THE CONSENT CALENDAR AS
PRESENTED OR AMENDED.
Bailey: Move adoption.
Wilburn: Moved by Bailey.
Champion: Second.
Wilburn: Seconded by Champion. Any discussion?
Bailey: I just want to point out that in the Consent Calendar we're setting a Public
Hearing on the Grand A venue roundabout project, and many people were
interested in that project, and that Public Hearing will be October lih.
Wilburn: We are also having.. . setting a Public Hearing on October 17th on a Tax
Increment Finance, Property Tax Rebate request by National Genecular
Institute project in Northgate Corporate Park. Roll call. Item carries 7-0.
Before we get to Community Comment, I would entertain a motion to
modify tonight's agenda by considering Items 6c and 6d, moving those to
after Item 7. For the benefit ofthe public, these three items are all related
to the Hieronymus project and just as a matter of, I suppose, ease and
clarification for the public should anyone wish to comment, we will start
with the request for the tax increment finance proposal and the other two
items will flow accordingly. So we will.. . again, I'll entertain a motion for
that.
O'Donnell: So moved.
Elliott: So moved.
Wilburn: Been moved by O'Donnell, seconded by Elliott. Ali those in favor say
"aye." Opposed same sign. Item carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 3, 2006.
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ITEM 5
Wilburn:
Woodson:
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COMMUNITY COMMENT (ITEMS NOT ON AGENDA).
This is the time to address the Council and the public on items that are not
on tonight's agenda. Please state your name, and please limit your
comments to five minutes or less.
My name is Daryl Woodson of Sanctuary, 405 S. Gilbert Street. First of
all, I'm pleased to be here talking about something other than alcohol
tonight. It's Iowa City's possibly second favorite topic, which is parking.
This weekend, the formal announcement was made that St. Patrick's
Church will be moving. The front page ofthis decidedly low-tech
presentation I have for you is a copy of the Near Southside
Redevelopment Plan from 1995. You will note that there is a proposed
parking ramp location right where the St. Pat's parking lot is. With the
development that we have now on South Gilbert Street, which is nearing
its finish, combination residential and retail development, the proposed
Hieronymus building, the obvious redevelopment of the St. Patrick's
Church and parsonage site, and some development proposed by the
Clarks, or will be proposed by the Clarks, for the old Anderson Bender
buildings, we're going to have potentially another thousand residents in
that neighborhood in the future, and as you may also well remember,
couple weeks ago, the Parking and Transit Director reported that we still
have a waiting list in Iowa City for parking permits, even after the
development ofthe Southside Transportation Center. Now, the St.
Patrick's Church parking lot will be coming on the market. It's very rare
in Iowa City, especially in the downtown core, that a one-half block
becomes available, especially from one property owner, and that half
block is potentially, or basically required, from what I understand, for
development of a parking facility. That happens to be situated roughly in
the middle ofthe new developments, both on south Gilbert Street and on
Clinton Street. From what I understand, the cost of the property from
appraisals is going to be coming in somewhere near what it was when the
City was in discussions with the Diocese on that property in the mid to late
90's, and I would like the City to seriously look at acquiring this property.
Weare going to need the parking. It's a good spot for it. In the short
term, it's already a parking lot. I think there's 70-some spaces there. So
the City could have an income stream immediately, albeit small, from
using as a permit parking facility. The City is also getting parking impact
fees from the Clarks on their south Gilbert Street development, from the
proposed Hieronymus building, from the other Clark developments still to
be proposed on Clinton Street, and obviously from the redevelopment of
the St. Patrick's Church spot. So we have a short-term use of a parking
lot, possibly Parks and Rec could make some use ofthe Parish Hall. In
the long-term, one ofthe photographs in this low-tech presentation, the
last one, number 3, is taken from Harrison Street where it intersects, dead
ends, into Linn Street at the bottom of that facility. There's a disused
This represents only a reasonably accurate transcription ofthe Iowa City City
Council meeting of October 3, 2006.
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pocket park in the old right-of-way Harrison Street. You can kind of note
offto the side, right...Of left side of the bad picture, a two-story apartment
building, and if you note off to the right side, the St. Patrick's Parish Hall,
the difference between the dark brick at the top and the light concrete at
the bottom is about the grade level of the upper portion of the St. Patrick's
parking lot, which is roughly the grade level of the alley and Dubuque
Street. So you've got quite a bit of grade difference there and the potential
for a future parking garage, which would be predominantly underground
from (unable to understand) Court Street. I think it's a great location for a
facility. I think we are going to need it. A number of people in the
neighborhood have already concurred and one of the major developers,
Jeff Clark, also says that he thinks this would be an excellent spot for a
facility. I don't think that we're going to have an opportunity to acquire a
piece of property like this... this, simply, in a long, long time. It takes a
large chunk of land to build a parking facility on, and this one is
essentially falling into our laps, courtesy of the organic urban renewal we
had last April. I would like the City to have the staff at least explore this,
see what the potential is. I think it's good planning, and I think it's
something that's going to make it possible for all these other
developments to succeed, and they're going to go ahead whether or not we
have the parking. We're going to have to have some place to put those
cars. Thanks a lot.
Wilburn: Thank you.
Karr: Motion to accept correspondence.
Bailey: So moved.
Vanderhoef: Second.
Wilburn: Moved by Bailey, seconded by Vanderhoefto accept correspondence. All
those in favor say "aye." Opposed same sign. Carries 7-0. I feel like you
two should have a theme song or something coming up together
(laughter). (unable to hear)
Siders: Honorable Mayor, Council Members, I'd like to read you this letter, and
then it will be followed up by a few brief comments. Weare present this
evening to introduce to you a volunteer group that would like to have a
public voice in addressing the extremely important issue of affordable
housing. Our informal group seeks to strengthen the conversation with the
thoughts and expertise of not only the home building industry, but also the
views of concerned interests and community voices. We are aware of the
dialog the Council has already had and we will continue to listen to those
discussions in the months ahead. Weare convinced that as our group
continues to gather information and formalize our thoughts, we can
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 3, 2006.
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Kubby:
Page 7
provide the Council with a broader and deeper understanding of some of
the fundamental issues affecting housing creation in our community. It is
our intention to conclude our business in a report to the Council, spring of
2007. Providing affordable housing has become increasingly difficult, not
just in Iowa City, but in surrounding communities and across the nation.
Assuring an ample supply of housing that is affordable to residents across
the economic spectrum presents both opportunities, as well as challenges
to home builders, social service groups, and policy makers. Creating and
sustaining an adequate supply of affordable housing is not an issue that
can be easily legislated. We truly believe it is a community issue. It
requires community input, and while there is no one solution, it is our
shared belief that one important and very necessary preliminary step is for
the builders and providers of housing, along with interested community
participants to come together and discuss the issues and identify the
challenges. Our gathering of concerned parties will be taking a realistic
approach to assessing the current market for housing in Iowa City and
where possible, looking for realistic solutions. The goal of our group is to
work towards identifying areas of agreement and commonality. There is
no doubt that at times we will be faced with issues that we cannot come to
a consensus. What we can agree to, however, is presenting varying
perspectives ofthose issues for the Council's consideration. Ultimately,
we believe our dialog will prove beneficial to not only the policy makers,
but to the community as a whole as we discuss the varied and diverse
challenges impacting the Iowa City housing market. We thank you for
your consideration ofthis important matter.
And this letter is signed by a variety of groups. Gleun Siders and the Land
Development Council; Mary Ann Dennis from The Housing Fellowship;
Andy Johnson from the Housing Trust Fund of Johnson County; Swen
Larson from the Greater Iowa City Area Home Builders Association;
Cheryl Carroll-Nelson from the Iowa City Area Association of Realtors;
Nancy Quellhorst from the Iowa City Chamber of Commerce; Mark
Patton from the Iowa Valley Habitat for Humanity; myself, Karen Kubby,
from FAIR!; Al Axeen from Hawkeye Area community Action Program-
many people know it as HACAP; and Steve Gordon from AM
Management. So it's a very, kind of exciting and scary process to come
together so that people who don't usually agree on things, and really
wanting to struggle with some of these issues for the good of the
community. So, we hope to be able to become articulate about our areas
of agreement and disagreement, bring those to you in the spring, and hope
that it will help the community move forward on affordable housing
issues. It seems like a moment in Iowa City, where you have the
ecumenical community, local goverrunents, citizen political groups, and
people involved in creating housing in Iowa City, aU talking about this,
and so we hope to make that movement go further, last longer, and reaUy
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result in some fundamental increases in the numbers of affordable units in
our community, both rental and various levels of home ownership.
Champion: Karen, thank you very much.
Elliott: Karen, I had not heard an inkling of this. I've talked with some of the
people whose names you just read, and I have not heard an inkling, and
the few years that I've been on the Council, I have not been more
surprised nor more pleased about anything. You are to be commended! I
really look forward to you folks doing some good work! Thank you!
Wilburn: Thank you. Entertain a motion to accept correspondence.
Vanderhoef: So moved.
Correia: So moved.
Wilburn: Moved by Vanderhoef, seconded by Correia. All those in favor say "aye."
Opposed same sign. Carries 7-0.
Johnson: Andy Johnson, Executive Director ofthe Housing Trust Fund of Johnson
County and I'm continuing the housing conversation. I've been before
you a couple times in the joint city's... talking about the idea of a housing
summit (unable to hear) and I wanted to let you know that that summit has
now been set for November, Tuesday, November 14th, from 8:30 to 10:30
at the South Slope Cooperative. This is something that is consistent, I
think, with a number of the recommendations from the Scattered Site
Housing Task Force (unable to hear) regional discussion involving the
private sector in these discussions, and so while the group that was just
here that I'm a part of will be taking more of an in-depth look. This is the
start oflooking at some of the possibilities of regional collaboration. The
activity started (unable to hear), and we're excited to have brought, will be
bringing in an exciting speaker. Carl Guardino is President and CEO of
the Silicon Valley Leadership Group, which is a public policy trade
organization that worked on behalf of one of the largest employers in
Silicon Valley, addressed the issues of housing and (unable to hear), other
issues, quality oflife in that area. So, he brings experience and expertise
in bringing folks with a wide variety of ideas and opinions together to
address this issue that affects the community. So, I'm just here because
1.. .that is going to be in your packet for next week, but (unable to hear),
making sure that you were aware of that. Feel free to hand that on to
anyone that might be interested. We are asking for RSVP's. It's free and
open to the public, but we will be providing information regarding what is
currently available and a menu of what other communities have tried, as
sort of a spring point for discussion, and so that information will be made
available (unable to hear).
This represents only a reasonably accurate transcription of the Iowa City City
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Vanderhoef: When you say invite anyone, out of our region? There is some interest in
the Iowa League of Cities in looking at housing in a bigger fashion, and
having a speaker available. May I offer the invitation to some ofthose?
Johnson: The event is open to the public. There's going to be a keynote by Mr.
Guardino, a panel offolks from our area, and then some consideration of
(unable to hear). So there will be (unable to hear).
Vanderhoef: Thank you.
Correia: That was 8:30 to 10:30 A.M.?
Johnson: Yes.
Wilburn: Entertain a motion to accept correspondence.
Champion: So moved.
Wilburn: Moved by Champion.
Correia: Second.
Wilburn: Seconded by Correia. All those in favor say "aye." Opposed same sign.
Carries 7-0. Just a reminder to Council about open meetings, notice, etc.,
if more than three are planning on attending that...so maybe at a work
session, just give a heads up on who is going to be going, so that we don't
have any problems there.
Dilkes: Unless you want to go and not participate at all.
Wilburn: Right. Ifmore than, if you see more than three others and you're there,
then keep your mouth closed. (laughter)
Champion: I don't think any of us can do that! (laughter)
Vanderhoef: No!
Wilburn: Well, maybe more than three shouldn't go then. (laughter) Would anyone
else care to address the Council on an item that's not on tonight's agenda?
This represents only a reasonably accurate transcription ofthe Iowa City City
Council meeting of October 3, 2006.
#7
ITEM 7
Wilburn:
Ford:
Wilburn:
Ford:
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APPROVING AND AUTHORIZING EXECUTION OF AN
AGREEMENT FOR PRIVATE REDEVELOPMENT BY AND
BETWEEN THE CITY OF IOWA CITY AND HIERONYMUS
SQUARE ASSOCIATES.
a) PUBLIC HEARING
Before I open the public hearing, again, this is on the TIF property tax
rebates. We've asked, Council's asked for City staffto walk us through
the basics of the request.
Thank you, Mayor Wilburn.
Thank you.
I'm Wendy Ford and I'm the Economic Development Coordinator for the
City, and I would like to introduce this project briefly to you. The
Economic Development Committee began working with Hieronymus
Square Associates several months ago, and the Economic Development
Committee at its September II th meeting voted unanimously to
recommend the agreement that you will have before you be accepted. The
agreement is for the developers to construct a 12-story, $40 million
building, which will be multi-use, including the first three floors with
commercial space; the first floor probably retail space. On floors 4
through 6, there will be best efforts to put in a 40-unit hotel, or in the event
that that does not succeed, that space can be used for apartments, and
remain at the commercially-taxable rate. Then on floors 7 through 12 we
will have upscale condominiums, which would be taxable at the
residential rate. The developers have also agreed to achieve Lead
certification or qualify for MidAmerican Energy's "Energy Efficiency
Program," which.. .last.. .at our last discussion, it looked as though they
were going to easily be able to achieve the Lead certification, which
actually is the larger feather in the City's cap and would be a nice feature
for a building downtown. The developer also agrees to streetscape
improvements around the building, and that includes putting in the trees,
doing the lights, the furniture, the sidewalk finishes, and all the amenities
that you might expect to find in a downtown pedestrian area around this
building. They have also agreed to build in a landscaped courtyard, which
will also include a drop-off area for pedestrians, so that dropping off
people to this building will not occur necessarily, at least, right along the
curb, but can occur within a courtyard area, built into the interior exterior,
if that's a possible scenario ofthe building, in a courtyard. The building
shall be complete by December of201O. Ifit is not, however, the
Committee built in the flexibility that would allow the developers to have
rebates for 12 years, instead of 13 years of rebates. Now, let me talk a
little bit about what the City agrees to in this agreement, as well. When
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 3, 2006.
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the project is complete, Iowa City would certify that all agreements, or
that all elements of the agreement are met, and that is a rigorous process,
that includes making sure that all the taxes have been paid on the property,
that every element ofthe agreement set forth in that list that we had on this
slide has been met, and that everything is in good order. When, and only
ifthat happens, rebates from a portion of the property taxes paid on the
increment, or the improvements. I use those words fairly interchangeably,
would happen for a maximum of 13 years. Now, when we first started
talking about this project, we wanted to look at it in terms of the maximum
value to the community, and one of the stipulations that we set forth in
that agreement was that the building have a $40 million construction cost
to it. That actually is the number that we base what the maximum possible
rebate, tax increment financing rebate, would be, and in this case, a $40
million taxable building would be able to receive a $1.25 million rebate.
Okay, now, let's talk about actual construction cost, as opposed to taxable
value. You can still build a $40 million building, but in the case of the
Hieronymus Square project, where much of the project is going to be
residential, or maybe up to half the project will be actually residential
space, the taxable value on that building is probably going to be something
more in the neighborhood of$25 million. $25.4, if we take the exact
square footages that Hieronymus has been working with. In that case, if
they finish the building as they have stated they would, the rebate would
not be $1.25 million. It would be $802,000 per year, and over the course
of 13 years, if they have indeed finished the building by December of
2010, could add up to $10.4 million. Okay, so keep that $25 million
assessable, or taxable value in your mind because we went and did, went
another step further to look at the long-term property tax impact on the
community and on the taxing entities in the area, and have some
interesting information to share with you. We're going to be looking at a
scenario showing three different, or we're going to be looking at a slide
that shows tax collection, property tax collection on three different
scenarios. Let me outlines those for you here. Okay, the bottom one here
with the pink square is the property tax that is collected on the empty lot
that has been sitting on that comer of Burlington Street and Clinton Street
for so many years. At its current value now, just over $900,000, the
property tax bill on that lot alone is $34,000 a year, and all the taxing
entities have been receiving the revenue from that lot as it stands. The
next line you see on this chart, the blue line here, is a hypothetical line,
and you'll notice that it is described as being a typical, successful three
floors of apartment over one floor of commercial. You've all seen them in
and around, especially around the areas of downtown. Those projects are
very successful. They typically are $6 million or so buildings that have a
taxable value because of that residential component to them. Usually
some are in the neighborhood of $4 million. Well, a building like that,
actually, brings in about $150,000 a year in property tax to the taxing
entities. That's the kind of project that normally, that has never been
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 3, 2006.
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TIF'd, as you might use the word, in the Iowa City area - one that because
of its moderate price tag is done fairly frequently in the area. Now, you
get a larger project, such as the Hieronymus Square project who's come to
the City to say, 'We would like to build something on a grand scale, but
can you help us with it because we don't think we could do that
otherwise.' If you sit down and put pen to paper, you'll notice that with a
taxable value of $25 million, the impact of assisting a project like this
(unable to hear) the impact of assisting with a project like this is
significant, also from the beginning, and what I'm talking about is the
(unable to understand) that zooms up. We start out with the Hieronymus
Square project, down along that same level as the Hieronymus empty lot
is. Hieronymus Square project line here...begins at the Hieronymus
Square lot, collecting as it always has, around $34,000 a year.
Construction goes forward, construction is complete, and right at this
point, uh, after certifications have been met, the developer has met all of
the agreements stipulated for them, and we pay rebates. Net property
taxes to all taxing entities in the area is still higher at that point, three years
into the proj ect, than one of those typical, successful three-floor apartment
and condos over one floor commercial that we have. So we go on, here to
here, 13 years when this is paid. Each year, the developer pays all their
taxes, which interestingly, start out at about a million dollars each year on
that same project there. (unable to understand) rebated that amount, help
pay for the (unable to hear) project, and staying in local tax coffers is this
number here, which on a large project (unable to hear) still continues to
grow. After our obligation of helping to finance this project with TIF, we
get to keep what would have been, or what formerly was, in a rebate bank,
and that's this amount here. So, all of a sudden, 15 years after the
beginning of this project, you're talking about upwards of one and a
half.. .or upwards of $1.1 million per year, that's every single year in
property taxes, on a project (unable to hear) Hieronymus Square. This is
the primary return on investment for doing a project on this scale, and I
wanted to make sure that the public understood that no property. . . that all
property taxes are paid, that only a portion of property taxes are rebated
back to the developer, and to be a little bit more clear and to maybe
reiterate, or to maybe spell out what, how TIF's work for some folks, let
me just say this. The tax increment financing works such that a piece of
property is assessed at a base value, and in this case, this would be that lot,
the Hieronymus lot, at the corner of Burlington and Clinton Street, before
the project begins. Then the project begins, and the increment or the
difference between the value in that lot at its base and that proj ect when
it's finished, is the amount from which tax increment finance dollars are
taken, the property tax dollars, paid on that increment are put into separate
fund. From that fund, only a portion of dollars are taken out to rebate to
the developer. The difference between all of the property taxes the
developer paid and those which are rebated to them is approximately
$6.80 on every $1,000 of valuation, and without trying to go into the
This represents only a reasonably accurate transcription ofthe Iowa City City
Council meeting of October 3, 2006.
#7
Wilburn:
Ford:
Wilburn:
Ford:
Wilburn:
Bailey:
Ford:
Bailey:
Wilburn:
Kinum:
Page 13
minutia of this, it essentially protects any debt that the City or other taxing
entities, in this case the School District and County have for debt
retainment. So, debt service is always paid attention to first. Only after
debt service is, or I should say, are TIP rebates factored from the amount
of property taxes paid on the increment, or the improvements, to that lot.
And those are the end of my slides and my introduction of the project. Do
you have any questions of me?
So the developer takes the risk of, they've got to build the building with
their finances, their cash. After it's completed and certified and they've
met all those requirements, after. . . they pay their property tax. They get
rebated, and we still, according to the brown line, have property taxes
coming into the entities above a project that could be built on the spot
right now.
Exactly.
Okay, all right.
And I guess the emphasis should be put on no risk. Weare not loaning
money up front and repaying ourselves, the City, with those increments.
We are waiting until the developer has met their requirements. We're
waiting until those property taxes come in, based on the values of those
increments, and only then would we be rebating to the developer.
Okay. Thanks for walking us through...
I have one just clarification. For 7 through 12, will be 78 units,
condominium units. Is that what is...
72.
It's over 70, right? Okay. Thanks.
Thanks for walking us through the mechanics. This is now a public
hearing on the tax increment finance request. (pounds gavel) Public
hearing is open. Reminder to the public, please state your name. Please
limit your comments to five minutes or less.
My name is Ronald Kinum, also known as Libris Fidelis, my writing
name. I came to protest the development that's proposed, called the
Hieronymus Square Development, which is a classic example of
investment speculation to the exclusion of respecting the culture and
atmosphere of our community, and this is not the only one, and I would
like to make an asterisk - I'm not opposed to the parking structure that
was mentioned earlier, provided it's handled in a proper way. (unable to
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understand) most developments, there is no overt indication publicly
whether their corporation is either an Iowa company, or even a company
that's based in our own country. Most developments are absentee owners,
which is what killed St. Louis. They speculate on future population
growth, and not on actual near-term future needs. Iowa City's government
has not been operating as an open Democracy, more like (TAPE ENDS)
approval for development. City, county, and state governments all across
our country have acquired the mentality that they are a for-profit (can't
hear) business whose main purpose is to encourage development,
primarily to bring in more tax revenue. That mentality does not serve the
people. I have seen what happens when mega-developers take over
communities, counties, and even whole states. With this egocentrically
greedy design for inhuman urban sprawl and disharmonious multi-story
developers, what I have seen most of my life in southern California is a
witnessing of the rampant development from which the population split
farther and farther away. Iowa City now has a dwindling, beautiful, park-
like atmosphere over most of the downtown and residential areas, an
historic downtown that invites community social interaction that draws
students from afar and residents into a year-round holiday atmosphere, but
the hideous University modem architecture that sprawls all around us and
above us, and the sterile, inhuman architecture ofthe Vitro Hotel seems to
be in competition with the Sheraton Hotel and our own new public library,
or disharmonious in-your-face architecture. If developers want to
participate in our seemingly far too modest natural population growth,
then developments or redevelopments also should be modest and in
harmony with our community, to include associating with our culture,
protecting our history, and emphasizing our community atmosphere. Let
those developers bring a better plan than this to our City Council that
won't become an eye sore which will be a 12-story monument to cause
our fleeing populations from abused community actions who will
definitely seek to flee with such changes. Thank you.
Wilburn: Thank you for your comment.
Hieronymus: Good afternoon, good evening, I am John Hieronymus, part of the
Hieronymus family and part ofthe Hieronymus Square Associates. With
me is Mike Hodge and Kevin Digmann. Our architects on this project, as
you know, are Cal Lewis and Newman Munson. I just have a few brief
comments. I think that the explanation that you were given by staff
clarifies what we see in the economics of this situation, but Ijust wanted
to clarify just briefly where we got to this. That is that the Hieronymus
family has been members of the community for somewhere over 50 years,
and as my mother started acquiring these properties about 30 to 35 years
ago, in the hope of being able to build a project that the city would be
proud of. We hope that we've brought that project to you. We have
engaged local developers to help us with this project. We simply can't do
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it on our own, and we have asked the City to help us with the tax
increment financing, because again, we have been unable and
unsuccessful in the past to (unable to hear). So, having said that, I would
like to thank you for your attention, and I'd like to turn it over to Kevin
(unable to hear).
Hodge: Mike Hodge, partner (unable to hear) Hieronymus Square project. Staff
did a good job of reviewing and explaining our project so I won't go back
through it. I did want to say that we are local people and we live here in
this community. The... .we raise our families here and we invest our
money here and reinvest our money here, and partnered with Hieronymus
and partnered with the City, we can make this project a reality. (unable to
hear)
Digmann: I know Wendy went through a lot ofthis and I applaud her for her effort.
I, you know, when we went through this process, my big role here was to
talk about the tax implications, and I don't think I could do any better than
Wendy did, but I'll give you a little bit more, fill in a little bit more on the
building, but here's the location, as we see as a current parking lot. I
think, you know, with the tornado damage, that building in the background
there is set to come down here within a couple weeks, and the project that
we're proposing is the Hieronymus Square project, you know, the total
square footage about 280,000 square feet. We went through all of (unable
to hear). Actually, you know, we have a lot more aggressive schedule
than what Wendy said. I mean, our goal, we want to take the next year,
get our plans done, and if all things go well we hope to break ground, you
know, a year from this time next year, get the project started and then just
(unable to hear) construction period, which means that hopefully by fall of
2009 that the building will be (unable to hear). Overall, we just think this
is going to be a great project for us as developers, all local; for the City, I
applaud you all and hope for your support. I think it'll be something that,
you know, I know some of you won't be on the Council by the time this
building is done, and I think it will be a great success for...a good feeling
for you guys to be able to look back and say, 'I was on the Council when
this happened,' and I think it will be a great thing for downtown Iowa City
and I think that's it's something that as a community we'll all be proud of
some day. Again, we really appreciate and hope for your support and that
Wendy went through a lot of this stuff, and if anyone has any specific
questions for anyone of us, we'd be happy to (unable to hear).
O'Donnell: Thank you.
Wilburn: Thank you.
Quellhorst: Good evening. I'm Nancy Quellhorst, President of the Iowa City Area
Chamber of Commerce. The Plaza Towers project served as a catalyst for
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Wilburn:
Perez:
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downtown development. We now enjoy and appreciate Tate's Grocery
Store, New York Deli, Formosa Restaurant...all of those things. Our
retailers and service providers are afforded the revenue, not only from the
residents who live in that building, but from the patrons who frequent
those establishments. Similarly, we believe that Hieronymus Square will
attract a mature market, individuals with discretionary income that'll be
very, very good for business. The Iowa City Area Chamber of Commerce
respectfully requests TIP for the Hieronymus Square project.
Thank you.
Hi, my name is Kevin Perez. I live at 161 Columbia Drive. I'm here to
talk about, I suppose there were some difficult questions besides just high-
income money. I want to know what the hurry is with the project. I know
that it didn't go to Planning and Zoning until July 22nd. That's not very
long ago. I know Wendy began working with the City in August 7th, or
something to that effect, and she referred to it as several months of
working together. That's two months ago so that's my math, but really
what I want to talk about is it's a lot of money to be going back to the
people, or especially three different people. So I have questions that I
didn't see answered in any of the minutes, and some of the questions I'd
like answered are how many jobs will this $60 million TIP create? Do we
need more high-income housing in the city? Do we need more low-
income housing in the city? I couldn't find anything...I found out through
asking questions, like who are the Hieronymus partners. We know that
now. If they're asking for the money, and they're asking for money back
from the City, what is their (unable to hear). So, if they're asking for, it's
like going to a bank, the City giving back the money, we should know
what we're dealing with. Also, who will be doing the work? Do
companies who will be doing the work, do they have fair pay, social
security, provide Medicare, workman's comp, benefits? What is the
ethnic diversity of the companies? You know, Hodge Construction is a
major partner and how many employees do they have? Are they, are the
employees.. . are they employees or are they all independent contractors?
Do they pay fair wages? I mean, a lot of these questions were never
asked. Again, will the bid process take into account ethnically diverse
companies? What is Hodge Construction's record on low-income housing
in Iowa City? Moen Towers was TIF'd at $78 million. Why is this one
$16 million? There was no mention of anything in the Planning and
Zoning until the Economic Development meeting of August 22nd, which is
not that long ago, to schedule this and make these really quick decisions. I
didn't see anything in the request, except for three, three floors of hotel,
and that if it doesn't work out - it doesn't work out. It's not enforceable,
the way I read it, so. . . I mean, they have to make it green for the
MidArnerican Energy Company requirements, and have three floors
commercial. That's not very much for that much money, you know, and
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Wilburn:
Kubby:
Dilkes:
Kubby:
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now that it's been rezoned, I think there's a lot ofthings that could happen
to that property. When I was talking to Wendy today, she was saying she
saw the numbers and why it couldn't, looked at the numbers and it just
wouldn't work financially. Well, I mean, that should be (unable to
understand). I mean, has everybody looked at those numbers to see if it's
right, I mean, it seems like a lot of square footage, a lot of apartments, and
you know how much houses cost in town. It's not free. So, they're
building high income....a high-income building, which we probably have
a plethora of, outside ofIowa City and in Iowa City. We probably could
use some more low-income housing. So, it's not always about the money
that's coming in. It's about what do we need for the city. My last one is,
according to the Press-Citizen, Elliott, Champion. O'Donnell, and Bailey
have made up their minds, but I want to know how you can make up your
minds without any public discussion. This is the first meeting, open
public meeting, about this. It's very, very fast, and it's very, a huge
decision. You know, we changed the zoning today. (unable to
understand) long-term plans. They brought it July 21 st and they said
they'd worked on it for a year. Brooks' comment was, 'Why didn't we
see this before now?' and rush it through without asking any questions or
have any, you know, thoughtful questions, besides how much money is it
going to bring in. I think you should probably wait and ask some more
questions. Thanks.
Thanks for your comments.
Excuse me, I'm Karen Kubby, and I had a couple of questions and (unable
to hear), and I'm not, I'm not asking this question rhetorically. I don't
really see where things are in the documents because it seems like it'd be
really important, because it's minimum improvement that has to be made,
and that's the accountability tool, and I think whenever we're talking
about public assistance, whether it's for individuals getting food stamps or
whether it's for development, that the accountability is really important,
and especially if (unable to hear) public money. So, in the minimum
improvements, I'm not seeing the mention of the hotel segwaying into
apartments as a requirement of the minimum, or the energy efficiency
standards in the minimum requirements, and so maybe they don't have to
be in there. So that's my question, but if they should be (unable to hear)
as the accountability tool, then...or I guess the question is, where is the
accountability tool for those two items? I see clearly the streetscape
improvements and the 40-unit hotel, but I don't see the what-if if those
efforts don't pan out, or the energy...
There is a revised Exhibit D. Do you have the revised Exhibit D? Okay.
(unable to hear)
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#7
Dilkes:
Kubby:
Bailey:
Kubby:
Bailey:
Kubby:
Franklin:
Dilkes:
Kubby:
Dilkes:
Kubby:
Page 18
The Lead efficiency, the energy efficiency is...we tightened up the
language on the, the best efforts for the hotel and the requirement that it
would be apartments if it wasn't a hotel. It had to be built out for a hotel.
It would be apartments if it wasn't a hotel and those would be taxed
apartments, not condominiums, taxed at the commercial rate.
Was there a negotiation about the energy efficiency standards not being
part of the minimum...
Well, it's also listed in Section 3.1, let's see, it's 3.2, Energy Efficiency
develop.. .
. . .if it' s an agreement, but I don't see. ..
Well, that section is called "Minimum Qualifications" so...
(unable to hear)
We need the re-certification, or the MidAmerican certification is included
in the body of the agreement. When you look at compliance with this, we
will not just go to Exhibit D. Minimum improvements relate to those
things that are going to be constructed, as opposed to any kind of
operation or other kind of compliance, like the re-certification, which is
not a tangible construction. We will have to get documentation from them
that they got that certification. So it's in the agreement - as we look at
compliance, we will look at the entire agreement and it is in the
section... that that will be necessary, in order for this all to go forward.
Well, and if you also look at Article 8, which talks about when the
obligation of the City to make the grant kicks in. There's a, I think there's
a number of references there to compliance with the agreement, the terms
of the agreement.
It just doesn't make sense to me, because the numbers (unable to hear)
incorporated, and I guess if you could tell me (unable to hear).
I'm comfortable with it.
Urn, I think that the presentation that Wendy made is one of the best that
we've seen coming from the City that explains TlF's, and I think it's a
really important feat to see the beginning of the brown line (laughter),
push the button to go back up there, but to show that those other taxing
bodies will get more during the TIF agreement period, and I think that
that's a point that doesn't get illustrated very well, or articulated very well,
and I think it's an important role for the City to do political education
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Champion:
Kubby:
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about this stuff. So I appreciate Wendy's efforts and implementation of
that.
We asked her to do that tonight, Karen. She did it last night for us and we
thought it was in the public's...
We all need that out here. ..to do that. Um, I'm...I want to applaud the
Committee because I've not seen in the past 16 years or so, us negotiating
and dancing well with developers around these issues, to push them to do
something above and beyond what their original vision was, to say we
need something back for the community, and I think the hotel piece is
pretty savvy because it's just kind of a double-duty income stream, and so
I hope that that works out. I have to say, I still feel disappointed about the
housing piece, that's there going to be housing, a lot of housing units,
whether it's condos and taxed at commercial, or apartments taxed at
residential, that there isn't any housing piece in here, not even universal
design for some of the units, so that people who, as they age, can stay in
their home and have those accommodations when they do have .
disabilities, or figuring out some creative relationship with the Housing
Fellowship or the Land Trust, to figure out one or two units out of 70-
some that could be, have a lower-income family living in downtown Iowa
City and having that advantage, as well, and so I guess I want to just keep
pushing on those issues. This is a time when we're talking about
affordable housing. It's a perfect opportunity to incorporate it and have
some housing within a gorgeous building, and I guess lastly I want to
encourage the City to look at TIT's accumulatively, and to ask Council
Members to ask those questions, with the TIF's, what is the total amount
the next three years with other TIF's that have been approved that (unable
to hear), and when we look at the Comprehensive Plan on our "to do" list,
what do we need money for? Even those this might be a good project, can
we afford to do this? What about in five years and seven years? What's
the accumulated money that we're forgoing? And we don't always have
that information. I know as a member of FAIR!, we were asking them
questions and the City didn't have it and the County didn't have it and
North Liberty didn't have it.. . nobody had the accumulated amount and so
Collin Gordon from FAIR! put that information together, and so I hope
that's something that will be part ofthis base line question - it doesn't
mean that you don't go forward, but you go forward with open eyes so
that you know we're going to do this project because we're getting enough
community (can't hear) out of it, but we're not going to be able to do this
other public project for three more years because of this decision, and I
think it helps the City look at it more comprehensively, more long-term,
and balancing these large projects. I think particularly on this lot it needs
to happen. It would be a waste in some ways to do something small, but
to balance that with other community (unable to hear), making sure that
we know what we're forgoing by saying yes to this. What might be
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Dilkes:
Kubby:
Wilburn:
Elliott:
Ford:
Wilburn:
Ford:
Dilkes:
Ford:
Page 20
(unable to hear). So, I'm glad there's some accountability. I have to state
that this might be a place where Dee and I agree, that I would prefer the
TIF to be only on the commercial piece of it and not the residential piece.
That was something that you said, right, Dee? So I'm going to (unable to
hear). So I'd like that to be (unable to hear), but I'm not sure what
happens if these standards are partially met, but not fully met. Is it a
percentage? How does that work? Like, ifthe hotel goes through, and the
streetscape amenities happen, but Lead certification doesn't happen, or the
MidAmerican Energy standards don't happen. What percent doesn't,
rebate doesn't happen?
I don't think it's a percent. It's.. . they have to comply with all the terms of
the agreement, and remember, remember, they pay the taxes. We got the
money. That's a big (laughter and several talking) we have to give it
back! So...
Okay, thank you for (unable to hear).
Thanks for your comment.
I just wanted to say, Karen and I have disagreed in the past on many
things, but I, I have never questioned her thoughtfulness and initially, I
had asked the Council for some (unable to understand). That was an ill-
thought of where Karen put in a guest opinion, asking for a guidelines for
this process and I like that, so Karen, I appreciate that guest opinion and I
would like to see some guidelines, which you have called for.
One clarification regarding universal design. Actually, the building will
be fully compliant with universal design standards, because by State and
Federal law, universal design is required in all commercial buildings and
in all buildings with elevators. So, it's going to be there. Locally, our
policy goes a step further and it also applies to any project with public
subsidies, i.e., something like this. So the, we would be covered with
universal design in the residential areas, as well. So, universal design is
covered.
Thanks for the supplemental information.
... universal design in the application.
I don't know. I mean, I haven't looked at those. So, those are building
code requirements? Yeah.
Yep, and secondly, with regards to the question on our cumulative
obligation to TIP rebates at this point, the Council will be getting in their
next packet a summary sheet that will detail all of the projects, where we
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Wilburn:
Cook:
Page 21
stand with them, and that will give that information, as well as a plethora
of other information, as well. And then finally with regards to LEED
certification, you either get LEED certification or you don't. LEED
certification is the lowest achievable certification in leadership in energy
assistance design that you can get. After that, you can be re-certified, you
can get silver, gold, and platinum or some other grander levels, as well,
but LEED certification, the minimum level, is the one that Hieronymus
Square project is aiming for at this point.
Thanks for that information. Public hearing is still open so if someone
would like to address the Council. . .
Hi. My name is Casey Cook. I think regardless of what side you're on on
this issue, I think people share a concern that we handle our resources with
stewardship and our public policy wisely. I'm going to argue that that's
the case with this TIF, and I want to introduce myself a little bit, so I can
provide a little context. Urn, 1.. .my education is in economics, and I have
a Masters Degree in Urban and Regional Planning, and I've for the last 25
years, I've been appraising commercial real estate. Most of that has been
here in Iowa City, and I just, I checked a few numbers. My office has
appraised 347,000 commercial projects over the last 10 years;
approximately 70% of those are in Johnson County and about half of those
(unable to hear) feasibility. I have appraised the Hieronymus parcel twice,
and I appraised the parcel at 64-IA twice and did some financial
feasibility analysis and...merely on Parcel 64-IA and to a lesser extent an
earlier project on the Hieronymus parcel. So I'm fairly familiar with both
sites and their feasibility, and I have to say that I love the outcome on
Parcel 64-IA where TIF was used, I think, very effectively, and I'm sure
the Council's aware that some of the advantages that they had, that this
project does not. The Moen Group paid $6 a square foot for that land, and
the developers of Hieronymus paid ten times that amount for the land.
There's the impact on financial feasibility. Now, the second issue was I
believe that the Moen Group got bonds up front for the TIF project and
they were able to leverage those bonds with financial institutions to
provide financing for that project. That's not the case in this project.
My.. .my opinion is that without the, with the plan that the developers
have negotiated with the City, that there's no way that it would work
without TIF financing, and frankly, I'm not sure that it will work with TIF
financing. In either case, the City takes no risk and has nothing to lose.
The property has been sitting there, virtually dead in the water since
before I arrived in Iowa City in 1985. We now have an idea that could
make a go of it and it accomplishes two key goals. I failed to mention that
I was on the Planning and Zoning Commission for almost six years, and
one ofthe goals that we had, and continue to have, is to provide good
quality housing in the downtown area, and not necessarily student
housing. Residential, a strong residential component in the downtown in
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critical to its vitality. A second goal that this achieves, it extends the
benefits of the urban renewal, across Burlington Street. Unlike other
residential units in the CB-lO, this project will also pay $6,200 per space
in parking impact, depending on what the parking needs are. And the
City's also getting a LEED building, and I was, when I heard that, I
attended a seminar where the architect who developed the LEED policies
talked about it and a fellow from Central College where they built a LEED
building, and my first reaction was the only reason the developers agreed
to this is they couldn't possibly have done their homework to know how
onerous LEED standards are, but I'm sure they know more about that than
I do. The other concern that I have is that the City, and this is a positive I
guess, is the City gets two to three floors of commercial space, and I
realize that there's no roll-back associated with commercial space and that
seems like a pretty significant advantage, but frankly, I think it's a bad
tradeoff. Number one, I expect high-end condos to generate twice the
value of the commercial space. So I think that the tax benefits you'll
receive from the high-end condos will be approximately the equivalent of
the commercial space, with the exception that I think they will absorb
somewhat faster. The second is, I think that that commercial space could
potentially dilute the value of the existing retail around the downtown. I
was very relieved in thinking that we're getting on the verge of bringing
that back into balance when the University converted 65-plus percent of
the Old Capitol Mall from retail to offices. Given the risk and the size of
this proj ect, the potential for extended absorption time, no prudent bank
would loan on this project without TIP, thus without TIP, there is no
project. On a personal note, I bought a building at 1580 Mall Drive with
some friends of mine about eight years ago and put $80,000 into it. At
that time, Sycamore Mall was seeing its vacancy increase and in fact was
languishing. Eight years later, I eat lunch at the sushi restaurant over
there. I see movies there with my wife instead of going out to the Coral
Ridge Mall. It saves me 20 minutes of driving. I meet clients at Panera
and I bought this tie (laughter) at that mall. The value has probably tripled
to quadrupled. The City used TIP to transform this project, which
enriches the lives of everyone, and I want to thank you for that. I hope
you'll approve this project, as well. I think this is an insightful and wise
use of TIP to create this project to enrich our community at no risk to the
taxpayers. Thank you.
Wilburn:
Thank you.
Dilkes:
I just want to clarify since there's been discussion about the Lead
certification. You need to look at the section 3.2 as to what the
developer's agreeing to. Agrees to seek an energy efficiency certification,
such as Lead or utility company certification.
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m p~n
Thompson: I'm David Thompson and I'd like to talk about (unable to hear) tax payer
here in Iowa City (unable to hear) just want you to be aware of concerns
on my part (unable to hear) every large project that comes along seems to
require TIF, and everyone sees this as a large proj ect, it's a great thing.
Personally, I don't (unable to hear), but it seems that this project is
designed with TIF in mind, instead of designing (unable to hear). It seems
that TIF is something that's expected (unable to hear) 13 years is a long
time (unable to hear) why 13 years? Ifthe project isn't economically
viable without the TIF (unable to hear) other commercial buildings and
ventures in Iowa City (unable to hear). (unable to hear) property taxes
(unable to hear) Thank you.
Wilburn: Thank you. I'm sorry, is there anyone else who wishes, who has not had
an opportunity to speak that would like to speak to the public hearing? Go
ahead, Karen. Thank you.
Kubby: So, 3.2 says developer agrees to seek certification, whether it's utility
company or Lead or some other kind, but it doesn't mean they have to get
it, it means they seek it, right? That's not as strong as I was thinking, and
so when we're talking about this, I guess I would prefer the language be a
little stronger than "seeks" in order for it to be part ofthe community
advantage that we get in exchange for the TIF.
Wilburn: Okay. (pounds gavel) Public hearing is closed.
b) CONSIDER A RESOLUTION
Bailey: Move the resolution.
Wilburn: Moved by Bailey.
O'Donnell: Second.
Wilburn: Seconded by O'Donnell.
Karr: Motion to accept correspondence.
Champion: So moved.
O'Donnell: Second.
Wilburn: Moved by Champion, seconded by O'Donnell to accept correspondence.
All those in favor say "aye." Opposed same sign. Carries 7-0.
Discussion?
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~ ~M
Champion: Well, I love this project. I think it's important to the future of Iowa City,
and 13 years is a really short time in a city's history and in 50 years, we
will have made the right choice, I'm sure, so I'm fully going to support it,
but I did think we did have.. . maybe one of you could respond to that. I
thought you were going to seek an energy approval, either from LEED or
from MidAmerica. I thought you were definitely going to do one of those,
and that language kind of bothers me ifit's...
Dilkes: No, that's what it says, that they agree to seek an energy efficiency
certification, such as Lead and utility companies, but it doesn't guarantee
that they'll get it. I wasn't involved in negotiating the agreement, so if
somebody wants to address that.
(female): (unable to hear)
Franklin: There wasn't that much discussion of that word. I think the understanding
was "obtain."
Champion: Yes, yes, yes. And so I do want that changed, if that's okay.
Franklin: Okay, I would suggest that you make a motion to change that word from
"seek" to "obtain" and the developers are agreeing to that.
Champion: I make the motion to change the word to "obtain."
Vanderhoef: Second.
Champion: Whatever!
Wilburn: Moved by Champion, seconded by Vanderhoefto amend by inserting
"obtain".. .
Champion: Is that okay?
Wilburn: . . . on certification.
Bailey: So, then it would read: developer agrees to obtain an energy efficiency
certification, such as Lead or utility, and you don't have an.. . either or is
still fine.
Champion: Either or is still fine.
Bailey: Okay, I think that was more to our...
Champion: That's what we intended.
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Wilburn: All those in favor of the amendments signify by saying "aye." Those
opposed same sign. Carries 7-0. Further discussion on the resolution as
amended?
O'Donnell: I also support this project. I think it's been a long time coming for that
area. When I first got on the Council, which seems about the turn of the
century (laughter), we were talking about developing that parcel of
ground. We have an opportunity now with the Hieronymus family that's
been in town for 50 years, so they're a local family. A local builder, local
employees, they spend money in the community and live in the
community. This is a good match and I'm going to be very happy to
support it.
Wilburn: Other comments?
Vanderhoef: I would just like to acknowledge that yes, I did ask for the possibility of
not TIFing the high-end condominium section of the building. I had not
seen the figures at that point of the feasibility of doing the building. In
best case scenario, that's still what I would choose to have. The other
thing that led me to look for an opportunity in all the TIF's that Iowa City
has done up to this point, there aren't very many actually, the City has not
reclaimed any of the TIF projects to do infrastructure for our City. In this
case, the building is happening in a older section of town where there are
upgrades needed in infrastructure, water/sewer, probably electrical work in
that area also, and we are in the process also of creating a change in
downtown in the Burlington Street corridor, which is a busy street, and we
are trying to jump that street to extend our downtown to the south, which I
highly approve of. I'm, I have thought this was a positive thing to do for a
number of years and I too have been here a long time, Mike, so I had the
opportunity to talk with Freida a number of times when she was still trying
to get her projects going on this lot. Having said all of this, and the
strongest language I could say to the developer, I am interested number
one in the mature living areas ofthis building. Certainly something to
increase the livability downtown. What, what I see that's most exciting to
me is the hotel. Frankly, I was disappointed with the Moen project that it
did not have enough hotel rooms to support the amount of convention
space that was being built in the Moen project, combined with the
Sheraton project. I think this city could well use the input of more folks
coming in for slightly larger conferences that what we can presently
accommodate, and these people bring in outside dollars to our community
and frequently they come as couples and this is another way to support our
growing arts, crafts, and specialty shops of downtown. We need those
kinds ofthings to happen. So, in looking at this project, my wildest wish
would be to get another 100 regular-rate hotel rooms in the project. The
developers know this. They are interested in a hotel. Certainly the market
will decide whether this is going to happen or not, but I will support the
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Bailey:
Wilburn:
Elliott:
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project because I think there's too many positive things that are going to
come out of the project that wouldn't happen south of Burlington without
it. So, thank you.
As was indicated, the Economic Development Committee voted on this
unanimously, but we did so after a fair amount of negotiations with the
developers, and I think everybody should be aware of that, that it was a
give and take. We were very much interested in adding the additional
commercial, which was how we developed the idea ofthe hotel, which
was something we saw as bringing additional dollars through a hotel/motel
tax. I would also have to disagree with the regular rate, because we have
to keep in mind that rates drive hotel/motel tax, not just room nights. So,
we don't want to drive our rates down in Iowa City because that would
affect that revenue stream. Speaking for myself personally, and not for the
Committee necessarily, I'm interested in this project for a couple of
different reasons. First and foremost, I think it's infield development in a
great way. We get 70-plus residential units, and if we would imagine
building high-end residential units, not up but out, imagine how much
space that would take. We bring these residence to our infrastructure,
rather than building infrastructure out to provide these residential units,
and we bring additional people to our downtown. Many people have
expressed concerns about the mix of businesses downtown and, although I
don't have near that concern, I think the opportunity to bring additional
people downtown to go to Tate's and go to our restaurants, as well as our
shops, as well as our bars, I think is a great thing. I was also very
interested in it because it taps into the vision that Dee talked about, about
jumping Burlington Street, which I think is an important vision for all of
us to continue to build on, because our downtown is a great place. So, I
will be enthusiastically supporting this project. The only risk that I see is
the emotional risk. It's an exciting project and we really want to see it
happen. So, there is that chance that it might not. So that's a little bit of a
risk, but the financial risk to the City with the rebate is structured well.
So, thank you for bringing this project to us, and I look forward to seeing
what happens there.
Anyone else?
I also will be supporting. Early on, as a child ofthe depression, obviously
I'm very conservative when it comes to fiscal matters, and early on, I was
dragging my feet because ofthe length of the TIF, the size of the TIF. I
took a lot of time to talk to a number of people and look at the financial
figures from various sources, and it came to me, it wasn't an epiphany, but
it slowly dawned on me that this is virtually a win-win situation
financially. I was concerned about the commercial aspects ofthe floors,
whether it be hotel or not, but I believe that the condos are high-end
enough, and Casey, I appreciate your comments on that. I appreciate
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Wilburn:
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everything except your tie. I think you got took on that. (laughter) I think
with that, I have come to the realization that to me this is win-win for the
City for any number of reasons, planning and financial reasons, and I'm
enthusiastic in supporting this.
Well, I'll admit that I've been on the fence on this issue, and I've
appreciated all the correspondence that Council, that the Council has
reviewed (unable to hear). I spent a lot oftime considering what the
ramifications would be for (unable to hear), and I do, through all of that
consideration, I will support this project through TIP for a variety of
reasons that were already mentioned. One, that there is no risk and
(unable to hear). I thought that the staff (unable to hear) weighing out
what the potential (unable to hear) tax revenue almost immediately, and
then the ultimate (unable to hear) and do what the market has done, and I
think that we have heard from a lot of people in different settings on what,
what a vision is for downtown and what will the Council be supportive of
for downtown that includes diversity of (unable to hear) (TAPE ENDS)
(unable to hear) I do wish that, the one thing that I do wish that (unable to
hear) was affordable housing in this development. (unable to hear) Mike
and Kevin, and so while there's no mandatory in here, what we had talked
about was voluntary, and so I hope that (unable to hear) In addition, I
think that (unable to hear)
The only other pieces that I will add is the commitment that the Council
has made to growing the tax base to help us generate revenue to pay for
some of the services that we all enjoy. The use of the tax increment
financing tool has been stated before. I believe the City of Iowa City has
tried to be deliberative about how and when we use it. In some cases, it's
been used to examine things like the types of, the income levels that we
have been getting from some of the jobs that are brought to the
community, and that careful look at it has resulted, I believe,as oflast
year for every dollar TIF it was almost $5 in retum on investment, and I
guess that gets to another point, another way to look at it is how do we
grow that tax base and can we get a return on our investment, and what's
shown by the graphic, the visual that was provided by staff, is the fact that
not only is there an initial increase retum in the investment, but a dramatic
larger increase when the rebates will end, and I think that's real key for
this particular project. So, I want to thank, thank the developers for
coming forward with requesting this. Again, a project could happen there,
but what they're saying is, with the assistance, with the tax increment
finance, due to rebate, we will take a greater risk, a greater personal risk,
so that there'll be a project that will generate many more dollars for the
community. So, that's why I will be supporting it. Roll call. Item carries
7-0. We still have the final rezoning and the matter of the alley related to
this project, but we're going to take a la-minute break. We'll come back
at quarter til. (TAPE OFF)
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~ p.~
ITEM 9 CONSIDER AN ORDINANCE AMENDING TITLE 5, ENTITLED
"BUSINESS AND LICENSE REGULATIONS," CHAPTER 2,
ENTITLED "VEHICLES FOR HIRE" BY REPEALING SAID
CHAPTER IN ITS ENTIRETY AND REPLACING IT WITH A
NEW CHAPTER 2, ENTITLED "TAXICABS." (FIRST
CONSIDERATION)
Bailey: Move first consideration.
Correia: Second.
Wilburn: Moved by Bailey, seconded by Correia. Discussion? Roll call.
O'Donnell: There was enough last night.
Wilburn: Item carries 7-0.
Karr: Can I have a motion to accept correspondence?
Vanderhoef: So moved.
Wilburn: Moved by Vanderhoef.
Bailey: Second.
Wilburn: Seconded by Bailey to accept correspondence. All those in favor say
"aye." Opposed same sign. Item carries 7-0.
(female): (unable to hear)
Wilburn: Not yet, it's first consideration.
Karr: . . . but then it does have a clause in it to be effective March I of 07.
Wilburn: Eleanor's running to make sure we don't do anything wrong. (laughter)
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ITEM 12 COUNCIL APPOINTMENTS.
Wilburn: I have a conflict of interest, has to do with Council appointments related to
human service aide to agencies, so I will not be participating in this item.
Bailey: Last night we agreed that Connie and myself, and then Abbie Volland, our
Student Liaison alternate will be serving with the Aide to Agency
appointments, to attend the hearings and make the recommendations to
Council, and we need to vote on this, correct?
Karr: A motion, uh-huh.
Vanderhoef: I move the motion to appoint these people for this coming year.
Elliott: Second.
Karr: Moved by Vanderhoef, seconded by Elliott?
Bailey: Is this a roll call vote?
Karr: Nope.
Bailey: Okay, all those in favor say "aye." Opposed same sign. Carries 6-0, with
Wilburn abstaining due to a conflict of interest.
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ITEM 14 CITY COUNCIL INFORMATION.
Wilburn: Amy?
Correia: I have two things. One is that I participated last week on a judging panel
for the University of Iowa Homecoming Court, and it was very interesting,
and I was thinking it was going to be (unable to hear) this was much more
extensive. The Homecoming Court was judged on leadership, (can't
hear), and academics. (unable to hear) and interviewed 7 finalists (unable
to hear) armounced on Friday after the parade. (unable to hear) with the
quality of the students at the University and (unable to hear) after they
leave here at Iowa. (unable to hear) After the time commitment, I
grumbled over that and it was (unable to hear), and the second, I just had a
question about the Coronet Apartments. We had some (unable to hear)
wondering what the status was (unable to hear).
Atkins: It's kind of unfolding, but apparently the owner of the property is
notifying folks they're not going to renew their leases. It does not affect
those that have vouchers. We contacted them again today. I want to get a
copy of the letter that was sent to folks. Once I have that I'll share that
with you, and then let me write something in a little more detail to give
you.. . apparently, they may be plarming to rehab it, but they could (unable
to hear).
Correia: (unable to hear) affordable housing that many people (unable to hear)
Atkins: Once I get more I'll get that to you. Okay.
Champion: I want us to think about reversing some of our rigidity on motor scooters.
I was approached by one of the business people downtown today and I
think he's actually right that why shouldn't they be able to park by the
bike rack. They don't park in the, where people are walking, and I think at
the price of gas, we're going to have, if it goes up or even stays where it's
at, we're going to have more and more scooters. They're kind of
becoming popular. I think we should encourage people to use scooters
instead of cars, and there's still several parked around the bike racks and I
walked around and they're not really interfering with anybody, and yet
we're ticketing them. I think we should reconsider that and let them park
by the bike racks, to encourage the students to drive those things instead of
cars.
Bailey: They don't take up bike space, they're beside it, right?
Champion: Yeah. I really think it's, I hate to say that I was wrong, because I was kind
of against them not parking there, but I don't, when I think about it and
look at it and hear a different perspective, I think it's going to become
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even more and more of a problem if these motor scooters become more
popular, and they should not be allowed to drive on the sidewalks, but
although today (laughter). ... people drive by on bikes on the sidewalk,
so...
Atkins: You do know that because of the bike rack they do have to get up on the
sidewalk.
Champion: Well, they can push it up.
Atkins: Okay. (laughter)
Bailey: Well, so, what do other. . .
Wilburn: I'm sorry, did you want to put this on a work session, is that what you're
requesting?
Elliott: I'm in favor of it.
O'Donnell: Not a bad idea.
Wilburn: Okay.
Bailey: Could we do some investigation about what others do, before we. . . what
other cities do?
Champion: Right. Well, Paris has them parking all over. (laughter)
Bailey: I was told by somebody last night that we're not a big city like Paris.
(laughter)
Wilburn: Did you have anything else tonight, Connie?
Champion: What?
Wilburn: Did you have anything else tonight?
Champion: No, that was it.
Wilburn: Okay. Mike?
O'Donnell: I want to thank Wendy Ford. I think she did a great job. Her presentation
made our jobs a lot easier. I welcome her to the staff. She did a fine job
tonight.
Atkins: I'll see that's passed along then!
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Wilburn: Dee?
Vanderhoef: A couple of things; number one, in response to the discussion last night
about the seminars at National League of Cities conference, I looked at my
schedule and if! go in a day early, I can attend one of those two sessions.
The second one I have a conflict with my own meeting, and I checked
with Steve to be sure there wasn't a staff person going out to do that, and
I'm happy to do that for Council. So, I'll do one half-day out there. The
second one, I want to give a big congratulations to Coralville and their
new hotel and their ability to put on a conference. We had nearly 1,200
registrants at the Iowa League of Cities meeting this past week. It was a
record-size conference. We had in the neighborhood of 525 elected
officials and then the others were staff people and vendors who support
our conference through their booths and the trade show. So, I recognize
this was Coralville's first shake-down, first conference ever. I have to
commend them. I did not hear any glitches or any complaints about
rooms, service, anything about the conference, which I thought was a real
attribute and worth mentioning, and certainly to the hotel manager, Jeff,
who was on the ball all the time, and if they had glitches, they hid them
well behind and had Plan B in place. So my hat's off to Coralville.
Bailey: I'd like to congratulate Dee as the new President of the Iowa League of
Cities. It's great to have you there, and thanks for your hard work. I
know that it will take a lot of time, but it's good to have that visibility of
the City and your work there. I've gotten a lot of questions about
downtown cleanup, especially cigarette butts, and so can you just outline
what we're doing to address those problems - gutter and sidewalk and tree
branches.
Atkins: I'm not sure where to begin. What we do, now it... this is going to sound
like an excuse and for that I apologize, but you know, one of the things we
have to do we have to virtually change the culture of people. You know,
you see people walk down the streets and it's flipped in the air and it's
like, 'Well, and somebody will clean up after me.' Most of them find their
way around businesses, and Dale has had some communications with the
DTA and he can explain that to you. We do, what I would call, a coarse
sweeping about three or four days a week. It's seasonal. One of the
biggest times ofthe year you get complaints is in that March and April and
snow banks melt and cigarette butts are left behind. We do a power
washing twice a year, and that will help, but quite frankly, it's, it's not one
of the more pleasant tasks. I mean, for example, we find, our employees
don rubber gloves and pick them out, pick the cigarette butts out of the
planters where people will put them. It's just an uncomfortable
circumstance, and I think we do the best we can with the resources we
have available to us. But it's not pleasant.
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Champion: It's a terrible problem downtown and I don't know...the ashtrays. I
thought that would really help solve the problem.
Atkins: The ashtrays are full, we empty those.
Champion: I know it, and they do help because it's that many less you have to pick up
offthe ground. But there is a, it's kind of the culture in downtown Iowa
City. It's not cleanliness, I mean, it's not the City's fault. People just tend
to throw things on the ground, and it's not true of other cities, and maybe
it's because we have so many temporary people here?
Atkins: Well, that Sunday morning 2:00 A.M. crew that we put on after a football
weekend, you can imagine what they do. I mean (laughter) smokers just
showup...
Champion: Oh, can I say just one more thing? Were you done?
Bailey: I wasn't done, but as far as I'm concerned, you can say one more thing.
Champion: Well, when I was in Chicago last weekend, I noticed that it's impossible to
cross their main streets without going to a comer, and it's because the
median, like we were talking about on Burlington, is very high, and not
only is it high, it's got gorgeous plants in the middle, and you could not
possibly climb over it, and I was thinking when we were having a
discussion about Burlington, how to keep people from.. .you cannot cross
a street in the middle. You have to go to the comer. I tried. (laughter)
No!
Atkins: We did respond to the Downtown Association recently in asking the
businesses if you could sweep up in front. Excuse me.
Helling: Well, yeah, we asked really two things. Number one ifthey would
encourage their membership and the adjacent businesses that aren't
members too, to just sweep the sidewalk in front of the store. The other
thing that we suggested that was perhaps they could put cigarette
receptacles by their entrance, so.. . and that would really serve two
purposes for those places that allow smoking, it would tend to have people
put them out some place rather than put them out the front door, which has
been seen done, and the other thing, of course, is if you don't allow
smoking, it gives the person coming in to your establishment a place to put
their cigarette out before they come in. So those are two things that we
could think ofthat might help. The ultimate thing is writing littering
tickets for people who put the cigarette butt out, and as Steve said, that's
kind of changing the culture. That's something that's been done for years
and years.
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O'Donnell: We need to add gum to that also. I've...I just.. .how do we get that off?
Atkins: You don't. It's just virtually permanently stained, Mike. I mean, we can
get the raised portion, but the stain in the sidewalk simply won't come out.
It'll just have to wear out.
Bailey: I have one more question. We had correspondence about 157 S.
Westminster.
Atkins: Yes, as I understand, that house is in foreclosure and I'm trying to find out
a little more information about that. I'll get you something on that.
Bailey: Thanks, and then finally, I had dinner tonight at one of our economic
development businesses, Oasis Falafel, your favorite place, Bob. I know
how you like the falafels, and it was nice to see it's crowded and the
owner says that things are going well and so it's nice to see large
investment, like we did with the TIF rebate, but it's also nice to see what
we do with economic development with our small businesses and how that
changes neighborhoods, and it's really exciting to see that succeed.
Elliott: You bet! I have two quick items, but preliminary to that, I grew up at a
time, obviously, when we were not environmentally astute. When I was in
basic training in Ft. Leonard Wood, when we smoked, and I smoked
Lucky's then, the thing I most wanted to do when I got home was smoke a
cigarette, and because Ft. Leonard Wood you had this field trip.
Everything when you got done smoking, and I couldn't wait until I could
let it go. So that's it! Last night, Rick Fosse, our Director of Public
Works, provided an excellent presentation on environmental projects and
processes that our city is doing. I was impressed with the ingenuity and
the originality that went into what they're doing, how they're doing it.
They're actually making money on it, and I hope that we find a way to tell
the public about our story. Lastly, it wasn't pretty, but the Cardinal's won
the Division and today they won the first round of the playoffs, 5 to 1.
We'll have some respect here after.. . (several talking and laughing).
O'Donnell: That's respectful!
Wilburn: Just a reminder to Council, we do have a Joint City/School/County
meeting tomorrow. I guess there's two items on the agenda. I called to
find out what the substance ofthat was going to be and (unable to hear)
School Board and Coralville requested these items to be on. So, there will
be a meeting...
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#14
Atkins:
Bailey:
Atkins:
Wilburn:
Elliott:
Wilburn:
Page 35
And one of the items is the Joint Communication Center and I've not
prepared anything formal to present. I'm there to answer their questions.
We learned about it today and...
.. . subcommittee and I won't probably be able to attend, depending upon
my other meeting tomorrow.
And all I can update is where we are (unable to hear). We'll see!
And, the other item, just a reminder to Council that tomorrow, or
Wednesday, the Realtors will begin another home ownership conference.
We were recognized by the Council for Mayors, and with the
collaboration of realtors and the City, so be giving a welcome and good
luck and go get 'em, the class on Wednesday night.
And three cheers also, sorry to interrupt, three cheers for what Karen
Kubby and Glenn Siders brought to us tonight. I'm pleased that those
groups are getting together. Very pleased. I'm sorry.
It's all right.
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