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Home My WebLink About2002-08-01 Resolution Prepared by: Steve Nasby, Eco. Dev. Coordinato;, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTIONNO. 02-258 RESOLUTION APPROVING FUNDING FOR THE ENGLERT CiViC THEATRE, INC. FROM IOWA CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT - ECONOMIC DEVELOPMENT FUND AND AUTHORIZING THE CITY MANAGER TO SUBMIT ALL NECESSARY DOCUMENTATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, the City of Iowa City has a Community Development Block Grant (CDBG) funded Economic Development Fund; and WHEREAS the CDBG Economic Development Fund was approved within Iowa City's Annual Action Plan for FY03 as part of the City's 2001-2006 Consolidated Plan (CITY STEPS), as amended, to plan for the use of federal funds to assist lower income residents with housing, jobs and services; and WHEREAS, the City has disseminated information and the Iowa City City Council Economic Development Committee held a public meeting to discuss said project; and WHEREAS, the Iowa City City Council Economic Development Committee has recommended that this project be allocated $75,000; and WHEREAS, the City Council finds that the public interest will be served by an allocation of CDBG funding for the proposed project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. An allocation of $75,000 in CDBG funds is hereby approved contingent upon the Englert Theatre Inc. obtaining a Vision Iowa - Community Attraction and Tourism grant prior to November 1, 2002. 2. The City Manager of Iowa City is hereby authorized and directed to provide all the necessary certifications or documents required by the U.S. Department of Housing and Urban Development. Passed and approved this 1 dayof August ,20 Approved by CITY'G~_ERK ' (~ Attorney's Office Ppd cd bg~es~engler t.doc page. 2 resolution 02-258 It was moved by Ch~amo'ion and seconded by Vanderhoef the Resolution be adopted, and upon mil call there were: AYES: NAYS: ABSENT: ABSTA I N: X Champion X Kanner : X . Lehman X O'Donnell X Pfab X Vanderhoef Wilbum X THE IMPORTANCE OF ARTS AND CULTURE TO ECONOMIC VITALITY Remarks by John Hudson Emergency City Council Meeting August 1, 2002 I am here as a member of the Steering Committee of the Johnson County Cultural Alliance, representing more than 50 non-profit arts and cultural organizations in Iowa City, Coralville, and Johnson County. I wish to restate my support for the Englert Civic Theatre, and request the Iowa City Council to look favorably on this latest request for funding in support of the Englert Community Attraction and Tourism grant. Cultural tourism is a growing and significant trend in the United States. Communities with strong arts and cultural programs increasingly attract cultural tourists from their region, and indeed from across the country. We need only mention a few local examples, such as the Iowa Summer Writing Festival at the University of Iowa, the Riverside Shakespeare Festival, Iowa City JazzFest, and Iowa City Arts Festival. The Englert Civic Theatre will become another venue to make our community attractive to cultural tourists. The Johnson County Cultural Alliance has begun a preliminary economic impact study of culture in Johnson County, with 50% of our member organizations reporting to date. We expect our final results to show that arts and culture in Johnson County employs more than 1,100 people, with total annual budgets estimated at more than $32 million. This is consistent with a recent nationwide study conducted by Americans for the Arts, which showed that in Bloomington, Indiana, a university city similar in size to Iowa City, arts organization spending totaled $35 million annually with more than $1 million generated annually in local government revenue. Arts and culture mean business. Richard Florida, Professor of Regional Economic Development at Carnegie Mellon University, says in his new book, The R/se o£the Creative Class: "creativity is the driving force of economic growth ..." (p. ix) His research has found a new trend developing. People no longer relocate to companies for jobs; instead companies relocate or form where the creative people are. Creative people are attracted to communities that foster the 3~s of Talent, Technology, and Tolerance. The Englert Civic Theatre, along with the organizations that make up the Johnson County Cultural Alliance, is a very important component of the creative talent of our community. It is no accident that Forbes Magazine ranked Iowa City #2 among small cities nationwide in the growth of jobs, inc(~me, and high technology. It is the connection between cultural activities and economic growth that we must recognize and reinforce, if we wish to maintain and improve the vitality of our communities. Thank you. City of Iowa City MEMORANDUM DATE: July 30, 2002 TO: City Council Economic Development Committee FROM: Steven Nasby, Community Development Coordinator RE: Economic Development Committee Meeting On August 1 we are scheduling a Council Economic Development Committee meeting to discuss an application for CDBG Economic Development monies. Enclosed please find a copy of an application packet from the Englert Civic Theatre, Inc. (ECT). Since ECT is a new, start-up business, a copy of their business plan has been included in the application materials in addition to financial documents. ECT is requesting a $75,000 grant as match for a Vision Iowa\Community Attraction and Tourism application. To access these funds, the State of Iowa requires local financial participation. Unfortunately, the Vision Iowa rules do not allow the prior acquisition costs to be counted toward this phase of the project. Through the CDBG Economic Development funds and the Vision Iowa\Community Attraction and Tourism funds capital improvements will be completed to the Englert property that will further enable them to complete the project. Following the completion of the renovations and grand opening, the ECT has proposed the creation of five (5) full-time equivalent (FTEs) positions. A prerequisite for use of CDBG Economic Development Funds is the creation of jobs for low to moderate-income individuals. The jobs outlined within the application range from a theatre manager to event staff. The CDBG regulations allow for up to $35,000 to be expended for each job created. This application is requesting $15,000 for each FTEjob created. Additional information relating to the creation of these jobs is in section three (3) of the application. Funds from Vision Iowa\Community Attraction and Tourism and the City will be used to complete vertical infrastructure improvements. A listing of the "stage two" components am listed in section 1.1 and section 2.6 of the application. Staffrecommends approval of funds for the ECT project based on the City's adopted Financial Assistance Guidelines and CITY STEPS. In addition, staff recommends that the City's funding be contingent upon ECT receiving a viable Vision Iowa\Community Attraction and Tourism award. The Financial Assistance Guidelines encourage businesses that leverage other funding, do not require additional public capital improvements, are start-ups and are involved within the community. In addition, the CITY STEPS plan encourages the creation of jobs for low-moderate income persons through micro-enterprises. ECT has requested expedited action on this application as there is an August 14 deadline for the State funding. Should the Council Economic Development Committee recommend approval of the CDBG Economic Development Fund request, a Special City Council meeting will also be required. Cc: City Council City Manager Karin Franklin, Director of Planning and Community Development Englert Civic Theatre, Inc. ,!~ ,,',,&, se M Et'tlING ;G R EA?::I$ HAPPEN! N6 ! Mayor Lehman and City Council 410 East Washington Street Iowa City, Iowa, 52240 July 30, 2002 Dear Mayor Lehman and City Council Members, In April 2002, the Englert Civic Theatre requested $1.635 million from the Vision Iowa/Community Attraction and Tourism (CAT) fund for Phase II of the historic restoration project. Vision Iowa requires City and County participation in all projects that they support. Although they recognize the significant dollars that the City of Iowa City has already contributed towards the purchase price of the building, they consider that to be part of Phase I of the project. Dollars spent on or dedicated towards Phase I cannot be used as a match for the CAT grant. The Vision Iowa Board is requesting that the City of Iowa City contribute dollars towards Phase II of the project. In response to this, the Englert Civic Theatre respectfully requests funds of $75,000 from the CDBG Economic Development Fund. This request is time sensitive. In order to be passed on to negotiations for the CAT grant, ECT needs to have letters of commitment from both Johnson County and the City of Iowa City before August 14th, 2002. The Englert Civic Theatre group appreciates the City Council's attention to this matter and is grateful to the City of Iowa City for their participation in this community project. Sincerely, Executive Director Englert Civic Theatre. EnE~,lert Civic Theatre, Inc. 4f 221 E. WashingfEon Street ~ Iowa City, Iowa 52240 (319) 688 2653 ~,. www.englert.org APPLICATION FOR BUSINESS FINANICIAL ASSISTANCE CITY OF IOWA CITY Economic Development Division 2002 Application for Business Financial Assistance Projects INSTRUCTIONS · An "Application for Business Financial Assistance Projects" should be completed when requesting financial assistance to directly assist a pdvate business. An "Application for Economic Development Support Projects~ should be completed for projects and programs that support economic development activities such as micro- business enterprise training programs, area business development programs, or specific area far~ade renovation programs. · Pdor to completing an application, an applicant is strongly encouraged to contact the City's Economic Development Coordinator to discuss the project for which they are requesting funding. (See contact information at bottom of this page). If this application is reproduced, it must remain in the odginal format and order in its entirety, or the application may be returned for correction. An electronic copy of the application is available in Microsoft Word or on the City's Web site (www.icgov.org). · Fill out the application completely. If any questions are left unanswered or required attachments are not submitted, an explanation for the omission must be included. · Only typed applications will be accepted and reviewed. · Application Deadlines: The City Council Economic Development Committee meets the third Thursday of the month. Completed applications for Business Financial Assistance projects should be submitted to the Economic Development Coordinator two weeks pdor to the meeting at which the applicant wishes to have the Committee review the application. However, under special circumstances the Economic Development Committee will call special meetings to review Business Financial Assistance Applications. · Submit completed applications, with attachments to: Steven Nasby Community and Economic Development Coordinator City of Iowa City 410 E. Washington Street Iowa City, IA 52240 (319) 356 5236 .... Phone: - ,_, Fax: (319) 356-5009 :; -~ ~-~' City of Iowa City Application for Business Financial Assistance Business Requesting Financial Assistance: Business Name: Englert Civic Theatre Inc. Name of Authorized Person to Obligate the Business: Michael Partridge Business Address: 221 East Washington St. Iowa City, Iowa 52240 Business Contact Person: Justine Zimmer T'~le: Executive Director Telephone: 688-2653 E-mail Address: Marquee123~aol~c0m Business Federal I D~: 42-1508154 Date of Application Submittal: J.uly 30, 2002 Release of Information and Certification NOTE: Please read carefully before signing I hereby give permission to the City of Iowa City (the City) to research the company's history, make credit checks, contact the company's financial institution, and perform other related activities necessary for reasonable evaluation of this proposal. I understand that all information submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all representations, warranties or statements made or furnished to the City in connection with this application are true and correct in all material respects. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from a state agency or political subdivision. SIGNATURE OF COMPANY OFFI/C)ER AUTHORIZED TO OBLIGATE BUSINESS: // NOTE: The City will not provide assistar~ce in situations where it is determined that any representation, warranty or statement made in connection with this application is incorrect, false, misleading or erroneous in any matedal respect. If assistance has already been provided by the city pdor to discovery of the incorrect, false or misleading representation, the city may initiate legal action to recover city funds. Section 1: Description of Business and Proposed Project 1.1. Descdbe in detail the proposed "project" (for example, company relocation, plant expansion, remodeling, new product line, size of building expansion, number of new jobs, amount of investment in machinery and equipment etc.): This project involves the purchase, renovation and re-opening of the last remaining historic theatre in downtown Iowa City, re-dedicating it a multipurpose cultural center with space for performing arts, visual arts, and multiple community functions, including office space for non- profit cultural organizations and reception and meeting rooms. The restored Englert Theatre will provide a permanent home for the Iowa City Community Theatre, and an elegant venue for concerts, dance recitals, instrumental recitals, choral performances, public lectures, literary readings and other events. Other spaces available within the building will be used to help foster and support a variety of public arts groups within the community. Arts Iowa City, the local visual-arts nonprofit group, has agreed to partner with the Englert Civic Theatre group (ECT). Arts Iowa City will use the second floor apartment as their main exhibition space, and the ECT will also use this area for intermissions and receptions, helping to provide Arts Iowa City greater exposure than it currently enjoys. Classroom and meeting-room space wilt also be available on the second floor. The third floor will become a "cultural incubator," where a variety of local, non-profit arts groups will be offered Iow-cost office space. This common location will enable these groups to pool resources, save on expenses, share ideas and facilitate collaborations. Preliminary discussions with Iowa City Jazz Festival, Iowa Arts Festival, Arts Iowa City, the Iowa City Community Theatre, Iowa City Fdends of Historic Preservation and other area non-profits have been positive. This idea fits extremely well into the "imagine Iowa 2010" initiative. The Englert Civic Theatre currently employs two part time workers, an executive director and a volunteer coordinator/data manager. ECT has also hired fundraising council and a construction manager. When the proposed "project" is complete, the facility will house will five full-time employees, numerous part-time positions and a variety of non proft organizations each with its own director and set of employees. PROJECT BUDGET STAGE ONE Building acquisition $ 877,00000 Wall demolition $ 11,860.00-: - Roof $ 24,e4o,0o STAGE TWO Code compliance $ 502,000.00 Accessibility and Restrooms $ 369,000.00 1st & 2nd floor North $ 418,000.00 ": Auditorium, balcony, stage $ 894,000.00 ;~ ;;.< .-'7. 3rd floor sleeping rooms $ 381,000.00 Exterior work, Basement $ 44,500.00 ~> Professional fees $ 300,725.00 Utilities $ 74,500.00 TOTAL Vertical Infrastructure $ 3,997,225.00 OTHER COSTS Opening Costs/Administrative $ 311,285.00 PROJECT 'FOTAL $ 4,308,510.00 1.2. Provide a description and history of business: Engver Theatre Corporation sold the Englert Theatre to a local bar owner and property developer in December 1999. To prevent it from being converted into a bar or torn down for a new apartment complex, a citizen's group immediately mobilized to acquire and renovate the Englert for a community cultural center. Under the non-prof'~ umbrella of the Iowa City Jazz Festival, The Englert Coalition quickly raised $53,400 to buy a purchase option on the building. The City of Iowa City stepped in temporarily and purchased the building for $700,000 to give the coalition time to the raise funds to buy the building. The agreement between the City and the theater stated that the Coalition had 9 months, to raise $500,000. If they succeeded, the City would contribute $200,000 towards the purchase price and be responsible for the lost interest, property taxes and management costs covering that 9 month period to the amount of $58,448. If the project failed, the building would be sold back to a developer previously identified. The coalition succeeded in raising the funds in cash and pledges and after an initial down payment of $100,000 is now purchasing the building from the City of Iowa City on contract over a 4 year pedod, with no interest. The City of Iowa City calculates the lost interest on a four year, no interest contract at $65,000.The total City of Iowa City commitment to the Englert Civic Theatre to date is $323,448. In Apdl 2000, Compass Facilities Management Inc. performed a feasibility study on the Englert that provided a Facility Assessment, a Business Plan and a Community Fundraising Master Plan. In July 2000 the Englert Coalition was formally incorporated under the identity of the Englert Civic Theatre, Inc. In February 2001, The University of Iowa Entrepreneurial Center updated the Compass Report figures and developed a five- year business plan for the Englert Civic Theatre Inc. The historic Englert is expected to serve as a focal point and coordinating site for many of Johnson County's performing arts, visual arts, history, and humanities organizations. Most of these groups have no permanent home, and the Englert would be able to consolidate these diverse community attractions into a whole that is greater than the sum of its parts. We expect that the existence of a venue like the Englert will stimulate the creation of other performance- based groups formerly handicapped by the lack of reasonably priced theater space (our sliding scale fee favoring nonprofits is the enabler). The Englert Theatre's moderate size of 800 seats means that our organization is ideally suited to collaborate with performing arts groups from our region. Our size also makes the Englert attractive for traveling commercial programs that would be financially impossible to book into Hancher Auditorium. The Englert Civic Theatre has developed programming plans for booking the theatre when renovations are complete. We anticipate offering a wide variety of performing arts, including both local and touring events. Again, the availability of an elegant and reasonably priced theatre like the Englert will stimulate and expand these offerings. Based on our preliminary resea~c~b and contacts, programming is likely to include (but will not be limited to) the following~ · Theatre, including dramatic productions of various sizes, musicals, dinner theatre,~ch~-Idrer~ theater, touring companies, and puppet theatre. · Music, including classical, chamber and symphony; 777: popular and contemporary; rock; blues; traditional, acoustic, choral and voice, musical revue, wind band and orchestra, and opera. · Dance, including recitals, modem, ballet, jazz, tap, ethnic, · Spoken word programs such as lectures, meetings, slide and travel presentations, readings, poetry readings and live radio. Fundraising events such as auctions, fashion shows and award ceremonies are also likely. Programming at the Englert will be primarily presented by various for-profit and non-profit arts and community organizations that will contract to use the Englert as a venue. We also hope to supplement this programming with a series of Englert-sponsored and produced events, designed to complement other programming and provide a source of revenue for the Theatre. NOTE: Please see attached business plan and five year projected budget. 1.3. Describe the organizational structure of the business, including any parent companies, subsidiaries, sister companies, etc. PROJECT ORGANIZATIONAL CHART - ENGLERT CIVIC THEATRE INC, Board of Directors Oversees alt the operations of the Englert Civic Theatre Executive Committee Consists of principle officers and makes decisions on issues with short time frames or emergencies Project Designers John Shaw - Architect Rick Loula - Theatre Des n ~-~ Fundraising Council Ganesh Ganpet r McComas Lacina Executive Director Justine Zimmer Oversees day to day operations and communications Coordinates activities of 6 standing committees Reports to the Board of Directors Volunteer Coordinator/Data Manager Brian Tibbets Coordinates volunteer projects and events Maintains data base and book keeping Volunteer Committees Fundraising, Grant writing, Communications, Programming, Facilities, Events 1.4. Ust the names of the business owners and the percent of ownership held by each. The Engiert Civic Theatre is a 501(c)3 organization overseen by a Board of Directors. Directors serve for a term of three years and are limited to serving two consecutive terms of office. Two directors represent the Iowa City Community Theatre and are elected by the board of the lowa City Community Theatre. One Director represents the Iowa City Friends of Historical Preservation and is elected by the board of the towa City Friends of Historical Preservation. The directors representing the ICCT and FOHP can serve up to six consecutive one year terms if they are re-elected by their board. Mike Partridge President TE 2003 Robert Hamel TE2007 1220 Village Road #9 Iowa City Community Theatre Iowa City, IA 52240 15 Warwick Circle 337-6948 mikep@partridgesystems.com Iowa City, IA 52240 339-1350, rahamel@prodigy.net Jerry Full Vice President TE2005 4642 Oak Crest Road SE JoLavera Jones TE 2004 Iowa City, IA 52240 3201 Muscatine Ave. Apt.1 351-5156, JfullC, aol.com Iowa City, IA 52240 351-1333, jo-jones@uiowa.edu Myrene Hoover Secretary TE2008 Iowa City Community Theatre Barb Kamer Events Chair TE 2005 435 Bayard St. Iowa City, IA 52246 950 23 Ave. PI. Apt. 338-0006, hd-hoover@mchsi.com Corelvitle, IA 52241 337-3903, bskamer@mchsi.com. LaDonna Wicklund Treasurer TE 2003 Fundraising Co-chair Dave Parsons TE 2003 1826 Brown Deer Cove 103 S. 7th Ave Coralville, IA 52241 Iowa City, IA 52245 351-1445, LDW ck und~ao corn 338-4913, dave~frohwein.com Sandra Eskin TE 2005 Thomas Rosenberger TE 2005 1047 Woodlawn Ave. 503 Stuart Ct. Iowa City, IA 52245 Iowa City, IA 52245 337-3019, SandrEskin@aoLcom 337-7414, Rosenber@avalon.net Jeremy Faden TE 2007 Mollie Schlue Communications Chair TE Historical Preservation 232 Mott St. 840 S. Summit Iowa City, tA 52245 Iowa City, IA 52240 6885151 339-6891, jbf@supras.physics.uiowa.edu mollie.schlue@thomsonlearningcom Susan Futrell Programming Chair TE 2003 Dick Summerwill TE 2004 311 Fairchild Fundraising Co-chair Iowa City, IA 52245 10(36 Highwood St. ~ ~ ~_ 337-7770, susan-futrellC, uiowa.edu Iowa City, IA 52246 .~- 338-9616, dsummerwill~isbt Don T. Ross TE 2005 Treasured2 Pendale Terrace NE. Iowa City, IA 52240 .. 337-5436, ross~,,inav.net 1.5. List the business' five-digit and six-digit North American Industn/Classification System (NAICS) codes or the primary and secondary Standard Industrial Codes (SIC codes)). 71111: 711110n Theater Companies and Dinner Theaters, 71112:711120 Dance Companies, 71113:711130 Musical Groups and Artists, 71119:711190 Other Performing Arts Companies, 71131: 711310 Promoters of Performing Arts, Sports and Similar Events with Facil~ies, 71151: 711510 Independent Artist, Writers and Performers, 7212:71212 Historical Sites. 1.6. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another Iowa City or Johnson County company?. If yes, please indicate the facility(s) and/or company(s) affected. No, this is a new business ~ 1.7. What date will the project begin? January 2001 __~ -~. ~ Be completed? November 2004 ~:: :: -~_ 1.8. Has any part of the project been started? If yes, please describe, o% January 2001 - January 2005 Purchasing building under contract from the City of Iowa City. January - February 2001 Removed dividing wall and stage covering. August - September 2001 Replaced entire roof. Section 2: Financial Contributions to the Proposed Project 2.1. What type and amount of financial assistance are you requesting from the City (for example, grant, forgivable loan, loan, property tax exemption, tax increment financing rebate, etc.)? The Englert Civic Theatre is requesting a grant of $75,000. 2.1a. If Community Development Block Grant Funds are being requested, please describe how the proposed project addresses the priorities, strategies, and goals cited in CITY STEPS 2001-2006. Economic Development needs are important in the CITY STEPS plan (p.99). Renovations will create immediate economic activity as employment for construction workers and economic vitality will be added to downtown Iowa City when the Englert Civic Theatre becomes operational. Examples of such economic activity include (1) employment of workers renovating the theater (2) employment operating the theater and producing shows, (3) employment for the art gallery and sale of local artists' products (4) local shopping by people who are drawn to downtown for performances at the theater, and (5) increased activity at local restaurants by theater patrons. The Englert Civic Theatre will increase the viability of downtown as a destination. Micro-Business is a High Priority Need Level (p.99). The Non-profit organizations which will occupy the Iowa City Cultural Incubator (ICCl) on the third floor are in effect cultural micro-businesses - January 2002 I artists and cultural workers as entrepreneurs. Existing organizations which have expressed interest in becoming occupants are Arts Iowa City (27 years), Iowa City Community Theater (42 years), the Iowa City Jazz Festival (10 years), the Iowa Arts Festival (20 years), the Iowa City Downtown Association, and the Friends of Historic Preservation. Techn ca Assistance s another Hi.qh Prk)~'y Need Level identified in CITY STEPS plan (p.99). One of the key services to be offered by ICCl is technical assistance to the cultural organizations the will occupy the third floor of the Englert. This technical assistance is intended to help generate a professional business environment to strengthen the economic viability of cultural activity through entrepreneurship. The aim is to move the non-profit cultural organizations in the direction of self- sufficiency. Other Economic Development Needs is listed in CITY STEPS as Hi{Ih Priority Need Level (p.99). This involves downtown vitality and streetscapes issues, both of which are established, long range goals of Iowa City. This will be realized in this multifaceted, cultural, joint venture construction project when the Englert Civic Theatre building is completed. Historic Preservation Needs is listed in the CITY STEPS plan as a priority need, even though ranked as a iow-level need (p.99). The Englert Civic Theatre is a significant historic building. It has received recognition from the National Register of Historic Places, League of Historic American Theaters, The National Trust for Historic Preservation, Save Amedce's Treasures, the Iowa State Historical Society and the Iowa City Historic Preservation Commission. 2.2. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. (Specific supporting documentation evidenced by cash flow statements, income statements, etc,, is requested.) If the City did not provide financial assistance, could the project proceed? In April 2002, the Englert Civic Theatre requested $1.635 million from the Vision Iowa/Community Attraction and Tourism (CAT) fund. Vision Iowa requires City and County participation in all projects that they support. Although they recognize the significant dollars that the City of IoWa City has already contributed towards the purchase price of the building, they consider that to be part of phase I of the project. Dollars spent on or dedicated towards Phase I cannot be used as a match for the CAT. The Vision Iowa Board is requesting that the City of Iowa City contribute dollars towards phase II of the project. Without City and County support of Phase II, the Englert Civic Theatre cannot enter into negotiations of the CAT grant award. 2.3. In what form is the business contribution to the project? Please explain clearly (for example, sale of stock, equity investments, subordinated debt, etc.). ~_~ The Englert Civic Theatre offers in support of the project Federal Grants National Parks Service- Save America's Treasures $ National Trust for Historic Preservation - Cynthia Woods Mitchell Fund 3,300~? State Grants State Historical Society - Historic Site Preservation Grant 100,000.00 Department of Cultural Affairs - Community Cultural Grant 10~000.00 City of Iowa City Resolution 01-392 (towards the purchase of the building) 323,000.00 Other Donations 1,260,750.00 Pledges 230,000.00 January 2002 2 IIn Kind Donations 211,040.00 TOTAL 2,503,090.00 2.4. Identify all agencies or institutions involved in the project (financial and otherwise) and what their involvement is: Arts Iowa City will provide an art exhibition space on the second floor. The Iowa City Cultural Incubator projected to house the Iowa Arts Festival, The Iowa City Jazz Festival, The Downtown Association, the Friends of Historic Preservation, the Iowa City Community Theatre as well as other non-profit organizations. Please see attached list of the institutions that have contributed monetarily to the project. 2.5. What type and amount of security will the assisted business provide the City? If no security is offered, an explanation must be provided. Note: as a general rule, for those businesses not publicly traded, personal guarantees are required in addition to other pledged business assets. Mortgage $ What seniority or position? Lien on $ What seniority or position? Personal guarantee $ Other $ None (if none, please explain) This applicant is requesting a grant. 2.6. Summary of Project Costs and Proposed Financing Sources (see below).,-, 2.7. Terms of Proposed Financing (see below). :~i ENGLERT CiViC THEATRE ~-:;~," .':7 FUNDING SOURCES STAGE ONE: Roof and Wall COST: COMPLETED, ALL BILLS PAID $136,500 SOURCES OF FUNDING: · State Historical Society- Historic Site Preservation Grant $53,865 · Private Donations 82,635 Building Acquisition: Purchasing the building. COST: IN PROGRESS, WILL BE COMPLETED IN 2005 $877,000 SOURCES OF FUNDING: · City of Iowa City 323,000 · Private Donations and Pledges 554,000 STAGE TINO: VERTICAL INFRASTRUCTURE: Code Compliance; Accessibility and Theatre Restrooms; FirSt and Second Floor North; Auditorium/Balcony; Orchestra Pit and Stage,* 3~ Floor Sleeping Rooms (Arts Incubator, Exterior Work; Basement South and Miscellaneous; Professional Fees: Architectural, Engineodng, Theatre Design, Legal. COST: $2,983,725 Januaf7 2002 3 SOURCES OF FUNDING: · Vision Iowa/CAT grant 1,635,000 · Federal - Save America's Treasures grant 365,000 · State Historical Society- Historic Site Preservation grant 46,135 · Johnson County ??? · City of Iowa City Economic Development grant 75,000 · Private Fundraising 862,590* * this amount will vary depending on Johnson County's contribution and the CAT grant amount awarded by the Vision Iowa Board. STAGE THREE: Opening and Administrative costs 311,285 SOURCES OF FUNDING: · Private Fundraising TOTAL PROJECT COST: $4,308,510 2.8. Generally a decision by the City on this application can be expected within 30 days of receipt of the application. If there is an urgent need for a more immediate decision on this application, please indicate the desired timeframe and the reason for the urgency. There is an urgent need for a more immediate deoision on this application. We go before the Vision Iowa Board on August 14th 2002. In order to proceed to the next stage of negotiations, we need to have City and County funding commitment in place, Section 3: Quality of Jobs to Be Created 3.1. How many employees are currently employed by the company worldwide (total employment including all locations, subsidiaries, divisions, affiliates, etc.)? The Englert Civic Theatre currently has two part-time employees. 3.2. If an existing Iowa City business, how many total individuals have been employ~lhe company at the Iowa City facility dudng the past year?. Two part-tine employees. <:;.~.~_ .'7:. 3.3. If awarded funds, how many new full-time employees will you add to the payroll at the Iowa City facility within 12 and 24 months of the award date? The business acknowledges if it fails to create the jobs pledged below by the end of the project period and maintain them for a period of time (usually 36 months from the date of the award), it may be required to reimburse City funds for the employment sho,;;~,;I, if the loan~grant was based on job creation. Contingent on the City of Iowa City, Johnson County, the CAT grant award and private funding, the Englert Civic Theatre project will employ 5 full time equivalent employees following the grand opening. Note: Jobs created or retained using Community Development Block Grant Funds must be "held by" or "available to" Iow- or moderate-income individuals. 3.4. What is the estimated annual payroll for the new employees resulting from this project?. Approximately $121,000 per annum. January 2002 4 3.5. What is the starting average hourly wage rate (not including fdnge benefits) projected to be: For the new employees? $11.63 per hour For existing employees? $9.00 per hour For existing and new employees? $10.32 per hour 3.6. In the following table, list positions and hourly rates for each job classification to be created and retained. List of Positions and Hourly Rate for Created and Retained Positions (use additional sheets if needed) No. Hours Hourly Create Retain Posit]on T~e Per Week Rate of Pay X General Manager 40 $18.27 X Administrative Assistant/Box 40 $15.38 Office Manager X Maintenance 40 $8.65 X Event Labor 40+ $10,60 X Non Event Labor 40+' 7.08 I Note: Every applicant should provide aYerage hourly wages for all new and existing jobs which meet or ex~ the average ceunty wage rate by industry. Nint~ percent of the projt~t positions should have e wage greater than the federal poYerty wage rote for lows G~ (30% of median income for a four pemon household in Iowa C~). Under sp~al dmumstances, consideration w~ll t~ given to those companies who rennet meet this requirement. the Economic Development Goordinator at the City for currant fi~ur~s.) 3.7. Will any of the current employees lose their jobs if the project does not proceed? If yes many?. Explain why: ~ Yes, both part-brae employees would lose their jobs. It ~s crucial, m order for the project t~p~eeeed~that the Englert Civic Theatre receive funding from the Vision Iowa Board/CAT grant. With ouLthat fun~g ::~. the project will fail. In order to enter into the negotiations with the Vision Iowa Board, we ~recei~' .~ ~.-1 funding from the City of Iowa City for phase II of the project. ;i 3.8. Please describe the types of won'(er safety programs that would be available for ~" employees. ~> All full-time and par~-time employees will be trained in theatre fire procedures and basic stage and rigging operations. January 2002 S 3.9. Does the business provide standard medical and dental insurance for full-time employees? If so, what percentage of the standard medical and dental insurance package expense does the company provide? Contingent upon the CAT grant, the Englert Civic Theatre will cover 50% of a standard medical insurance package. Section 4: Economic Impact 4.1. Please document how much of your operating expenditures (raw materials, supportive services, machinery, equipment, and labor) will be spent within Johnson County. Virtually all of our 4.3 million dollars of operating expenditures will be spent with in Johnson County. 4.2. What Johnson County companies do you expect to sell to that currently buy from non-eastern Iowa companies? What percentage of your sales will fall into this category?. Not applicable 4.3. What other Johnson County companies could be considered to be your competitors? Hancher Auditorium, Riverside Theatre, Iowa Memodal Union 4.4. How will this project benefit the City/County? The Iowa City Area Development Group (ICAD) recently retooled its strategic plan. Each of the four objectives on which it will focus in the coming years will depend, in large part, on the quality of life the community affords. The objectives are: · Existing Business Retention and Expansion · New Business Recruitment · Regional Economic Growth · Communications With a focus on these objectives, ICAD has set some measurable goals: · Assist in 20 existing business expansions '::- × - .-7. · Locate 15 new companies to the area · Assist in creating more than 2,000 new jobs · Support capital investments of $120 million Economic Development marketing efforts targeted to these goals herald the Iowa City area and surroundings as a jewel in Iowa's crown. ICAD concedes, however, that unless we can be more attractive to employers by keeping Iowans here and attracting new folks to our state, we wilt sugfer great economic costs. Projects such as the Englert Theater, which light up the downtown streetscape, spur new spending and create a festive venue for entertainment and performances for the entire population, are just the kinds of projects that help ICAD sell the area to new businesses. Attracting visitors from $0 or more miles away · The Englert Theatre management will be proactive in seeking partnerships with production companies who will share in the costs of advertising shows in publications within the targeted audience market. January 2002 6 · Great attention to calendar planning and communication via electronic means - web site and email newsletter will ensure the greatest potential audience coverage for nominal costs. · Partnerships with hotels and restaurants for innovative packaging promotions will stretch marketing dollars and enable targeted advertising in the Quad City Times Des Moines Register and Waterloo Courier. · The Englert will partner closely with the Iowa City/Coralville CVB to promote its features as a venue for special events. · The Englert Theatre will be diligent in providing regular calendar information and concert publicity to all state and regional newspapers while maximizing publicity opportunities in newspapers and publications within a circle encompassing Chicago, Minneapolis, Omaha, Kansas City and St. Louis. · The Englert will partner with allied associations and businesses that will be able to cross market. Listings and advertisements in the Iowa City/Coralville Visitors Guide, the Iowa Travel Guide, the Eastern Iowa Visitors Guide are just three opportunities for calendar of event listings at no charge. Between the three above publications, circulation will reach upwards of 1/2 million people. 4.5. How will this project grow the property tax base of Iowa City? Broadening the community's cultural offerings assists in attracting new residents and new businesses to our area by improving the quatity of life and range of family activities available to residents and potential employees. This benefits the entire region and the state by building on Iowa's cultural attractiveness and adds to the continued vitality of downtown Iowa City and local businesses. Cultural enhancement is part of the strategy to mitigate Iowa's population drain of young people and recent college graduates. New businesses, new residents and the retention of individuals native to Iowa, adds tO the property tax base of Iowa City. 4.6. Beyond the present project, what future growth potential is there for the Iowa City operation? The arts are part of what makes Iowa City unique. The vitality the arts bring to the community has recently been nationally noticed. In the past three years, several publications have ranked Iowa City high in desirable places to live. Mostly recently The Wall Street Journal devoted an entire page to retirees relocating from New York and Boston (March 19, 2001) who touted the community's cultural benefits as chief criteria for considering Iowa City. The Englert Theater - which is only a block away from the Senior Center and the Public Library, and two blocks from the Ul campus ~- will attract new acts to town, provide a venue for local talent who've not benefited from a stage of their own and enhance the cultural offerings of the community. Local Arts organizations and companies: · There has been significant interest expressed by a variety of local performing arts organizations in potential use of the Englert as a venue. These include: The University of Iowa Division of Performing Arts, The Downtown Association, Iowa Arts festival, Iowa City Jazz Festival, Preucil School of Music, Graffitti Theater, Dreamwell Theatre, Iowa City Community Strings, and others. · Over 50 organizations have already been identified as potential theatre presenters. Promotion and Touring companies: · Local, regional and national promoters of performing arts events have already begun to contact the Englert concerning use of the theatre. A number of local music promoters, including Trailer Records, Ginger Records, Oh, Sure! Productions, have expressed interest in booking shows once the theatre is open. In addition, we are now receiving a steady flow of inquiries from regional and national promoters who are interested n theatres of th s s ze Through membersh p in the League of Hi,eric Amencan Theatres (LHAT) we have access to a nahonw~de network of theatre promot~ and est coordinators. In addition, there are several regional associations, such as the Iowa Ol~-'-Hous~:.. Network, the Midwest Arts conference and showcase, and the Iowa Arts Councit, with ~n~'we ~ve '-~ been in contact and which will provide an opportunity to link our programming schedule~ ~ith oth~ venues in Iowa and the Midwest. January 2002 7 Other: The Englert Theatre has already received inquiries and proposals to book the theatre, even in its half- renovated state, including the following: - Numerous weddings and receptions C) ,:2 · Fundraising events for several local non-profit organizations · A proposal from University of Iowa Theatre department for a special opening show ....... -T-'[ · A proposal for a weekly radio broadcast, Live from the Englert ¢~ -- My ry Di · A proposal for a Murder ste nner Series · A regional string/jazz ensemble , · A dance recital ':~Z ::.,-. _ Collaboration: ~ r-,~ The following bullets highlight the events and/or entities that either did not exist or will be immeasurably enhanced by the Engtert's revival: · Iowa City Community Theatre: ICCT will make the Englert Theatre its home base. ICCT, a Iongtime local company, is committed to a schedule of 4 productions each year, with six performances per show. Dates for these performances ara already projected through 2003. Performances currently are staged in a steel pole building at the 4-H fairgrounds. · Arts Iowa City: The Englert Group has signed a consortium agreement with Arts Iowa City to plan, develop, and operate a multi-functional art gallery on the second floor, in the area that had initially been the Englert family apartment. The gallery will have display walls and pedestals that can be quickly and easily moved. Thus the gallery can simultaneously be used as a small performance area, seminar room, or reception hall. Arts Iowa City has a 27-year history of working collaboratively with both businesses and other non-profit organizations. They have been the fiscal agent for several start-up non-profit groups that have spun off to serve our region. Among those are the Iowa Arts Festival and Jazz Fest. Their current home is in the basement of a downtown hotel. · Cultural Incubator: The Englert Group is currently working with the John Pappajohn Entrepreneurial Center's Business Consulting Class at the University of Iowa Business School to create a strategic plan and business plan for the non-theater portion of the third floor. The Englert Center will be a shared business office complex for cultural organizations - nothing like this currently exists. The organizations who have expressed interest in collaborating to form this arts incubator are: Arts Iowa City, Iowa City Community Theater, Iowa Arts Festival, Iowa City Jazz Festival, The Downtown Association, The Friends of Historic Preservation and the University of Iowa Center for Effective Non-Profit Management. In addition to in-residence organizations, we anticipate offering modular support services to non-resident small non-profit cultural groups as well as independent performing or visual artists, writers, and historians. · Local Business: We are also in discussions with local business proprietors concerning Englert's two storefronts facing Washington Street, and the Englert apartment kitchen on the second floor. It is our intent to collaborate with existing businesses to operate these areas with the profits benefiting the organizations participating in the Englert Center. · Englert Night Out: One of our major fundraisers is "Englert Night Out," a non-alcoholic community celebration for New Year's Eve. This is a leveraged funding event for the community, and by the community. Scores of individuals, more than 20 performance groups, three dozen artists, five service organizations, 38 businesses, and the City of Iowa City collaborated on December 31, 2001 to make our first one a success. · Englert Annual Road Race: The first Englert Road Race in the summer of 2000 drew 250 runners and crowds of enthusiastic supporters. The good will and publicity generated encouraged the Englert event planners to organize the Englert road race as an annual event. Plans are unden~vay for guest January 2002 8 runners, a celebrity race starter, and pre-race dinner to encourage maximum participation in the third annual road race. Estimated participation: 1,000. · Compact Disc: A group of local musicians have collaborated to create and release a CD for the benefit of the Englert. This CD by MUSE (Musicians United to Save the Englert) has original songs by Greg brown, Big Wooden Radio and other local groups. Plans are underway to make this a yearly collaboration between local musicians, Trailer Records and The Englert Civic Theatre. Tourism Value: Iowa City has made a consistent and concerted effort to strengthen and promote the arts. Our community has not yet reached critical mass, but we are rapidly approaching it. With the completion of the Englert Civic Theatre complex that critical mass will be reached. We anticipate attracting a large number of tourists from metropolitan communities that are within 300 miles. This includes Minneapolis, Milwaukee, Chicago, St. Louis, Kansas City and Omaha. More and more people are beginning to taka short trips away from home. That, coupled with the new trend of visiting the small arts towns of America, places us in an exceptional position. We are just far enough for the tourist to feel they have had an adventure. Based upon data collected by the Advocacy Committee of the National Arts Educators Association: If our community continues for the next three years the concerted effort of the past, the arts in iowa City should bring in millions in tourist dollars, and some of those dollars wilt be left on the highways and byways from there to here. Section 5: Environmental Impact 5.1. Please descdbe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. The Englert Civic Theatre will have a system in place to manage all recyclable materials generated by general operations. 5.2. Do you use recycled materials in the production of any products or through the provision of any services at your facility?. If so, please describe. Not Applicable 5.3. Will you be treating, transporting, storing, and disposing above ground, on or about your business premises, in tanks or othenNise, for any length of time or for any purpose: petroleum products, agricultural or other chemicals, waste oil or other liquid waste, or any other inflammable corrosive reactive or explosive liquid or gas? If yes please spe~E'~/ Not Applicable. ~:~ :~ ~'= -T~ 5.4. Will the Iowa City operation develop renewable energy resources or products tl~nse~,_~ e ' energy?. If so, please describe .... ~ -:; Not Applicable. ~ Section 6: Community Involvement; Compliance with Law; Repayment Agreement 6.1. Please describe your business' history of contributing to the community through volunteer work, financial contributions, or other means. If a new start-up business, please describe commitment to becoming involved in the community. January 2002 9 ECT has grown into a volunteer group of 150 people that meet on a regular basis. They comprise a Board of Directors and five committees: Fundraising, Communications, Facilities, Programming, and Events. This is a true grassroots effort. Its strength lies within the input and support of a diverse population. ECT has organized fundraising events from as small as individual benefit concerts and parties to an annual community wide summer Road Race and New Years Eve Celebration. Positive response from the community has been overwhelming. In addition to ECT fundraising, outside organizations have held their own fundraisers for the Englert. Businesses and professionals have contributed funds as well as in-kind donations. Artists and performers have given their time as well as their talent. A list of participants, supporters, monetary and in-kind contributors is attached to the report. The growth and public support of the Englert has been well documented in the Iowa City Press Citizen and the Cedar Rapids Gazette. Both newspapers have contributed advertising and printing to the ECT. Local radio stations KCCK, WSUI, KUNI, KXIC, KKRQ, KCJJ and KRNA have conducted interviews, talk shows and public service announcements, promoting our fundraising events. The University of Iowa, The Iowa City Community Theatre, Arts Iowa City, the Iowa City Cultural Incubator, the Downtown Association, the Chamber of Commerce, Friends of Historic Preservation, The Iowa City Jazz Festival, the Iowa Arts Festival and the Johnson County Cultural Alliance are all entities that will benefit from and use the Englert Civic Theatre. These entities have dedicated their time and dollars to this project. It is the intention of the ECT to continue this tradition of community, cultural and economic activity. Local businesses will benefit from a year-round influx of patrons and tourists. Cultural entities will have a central location to network and perform. Citizens will enjoy year round opportunities that enrich their lives. 6.2. Has the business been cited or convicted for violations of any federal or state laws or regulations within the last five years (including environmental regulations, Occupational Safety and Health laws, Fair Labor Standards, the National Labor Relations Act, and the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). No. 6.3. Financial assistance from the City of Iowa City requires a repayment clause in the loan agreement with the City. The repayment clause requires a prorated repayment of the finandal assistance if the company does not meet its job attainment obligation and other obligations of this agreement. Is the company willing to enter into a loan agreement that contains a repayment clause? The Englert Civic Theatre is applying for grant funding. ECT recognizes the requirements and obligations associated with receiving funding from the City of Iowa City. If ECT fails to meat these requirements it will repay the City of Iowa City for the amount of the grant. Section 7: Required Attachments Check off each attachment submitted. If not submitted, explain why. Janua ~/2002 [ X ] Business plan (if new business) [ x ] Profit and loss statements (3 year historical and 2 year projections) Past three years attached. Please see 5 Year Projected budget [ X ] Balance sheets (3 year historical and 2 year projections) Past three years attached. Please see 5 Year Projected Budget [ X ] Letters of commitment of project funds (from banks, applicant, etc.) [ X ] Description of fdnge benefits provided to employees [ ] Copies of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the past year and a copy of the most recent monthly payroll register VVill be provide on July 31, 2002 [ X ] Map indicating the location of the project within the community [ X ] Cost estimates for construction, machinery/equipment, permanent working capital, and purchases. [ X ] Certificate of Good Standing from the Iowa Secretary of State or an authorization to conduct business in Iowa. [ X ] Certificate of Incumbency listing the current board of directors and current ~rs if a corporation or a listing of the general partners if a partnership January 2002 1t [ ] Corporate resolution authorizing the application for City funds Will be provided July 31, 2002 [ ] Corporate signatory authorization naming an officer to execute the City application and City loan documents, if approved Will be provided July 31,2002 [ ] Other Explanation/other comments: ~-.. Upon review of a submiffed application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. Janumy 2002 12 Operational Maintenance Plan OPERATING PRO FORMA BUDGET: LINE ITEM COMMENTARY These figures are based on' a fully operational theater with a full clientele. Please see 5 year projected budget for the numbers building up to this capacity Revenue · Theater Renta Rate Assumptions: Performances For Profit: $900/day vs. 10% gross ticket sales Not for Profit: $600/day Rehearsal/Setup For Profit: $450/day Not for Profit: $300/day The derivation of the total income stated can be found in the R__e_nt and ~Event Labor Calculator (see attachment) · Meetin.q/Re(~eption Rental: ::'~ Rate Assumptions: ~-:~ Second Levee Meeting Space For Profit: $125 for each 4 hours ~-~, ~ ~.~,. .%- For Profit (food served): $150 for each 4 hours Not for Profit: $75 for each 4 hours Not for Profit (food served): $100 for each 4 hours The derivation of the total income stated can also be found in the Rent and Event Labor Calculator in the Exhibits Section of this report. The estimates of building rental should be characterized as moderately aggressive, but need to be in order to help balance the annual budget. · Self-presented Events and ,Fgndraisers: It is the assumption of this report that some form of self-presented events will be necessary to support the operation of the building. In the early stages of operation those may be relatively risk-free benefits with donated talent and expenses underwritten by sponsors. The figure on this line assumes a gala benefit opening event or events in the inaugural year. · Membersh p Dues: Assumes formulation of a "Friends of the Englert" group with a membership of 300 in the first year paying $40 per membership. Effort should be made to limit "perks" such as mugs and T-shirts; such items drive up the cost of the program and reduce tax-deductibility for the donor. Newsletters and advance ticket purchases are highly desirable and do not affect tax-deductibility. A membership program outline is included in the Exhibits section of this report, · BOX Office C0mmision: Fees collected for handling tickets for clients using the theatre. Budgeted amount assumes helping 20 events at $100 per event, a small amount for charge card reimbursement, and collection of a per order handling fee to be retained by the box office. · Food/Beverage/Bar Net Profits; Net revenue assumes that there are $10,000 in annual concessions sales x 35% = $3,500 net profit $20,000 in annual liquor sales x 55% = $11,000 net profit Additional net profit from meeting food and beverage sales of $1,500 The decision to make alcoholic beverages available will need to be addressed in the future. The financial estimates in this report are intended to provide useful information for that decision. Liability stemming from the actions of intoxicated patrons during and after events, along with increased insurance costs to cover liquor liability, are issues to consider, but many managers believe it is easier to control alcohol by serving it. In that situation, there are fewer patrons who over-consume prior to ardving at the venue, knowing it is not available during the event. · Reimbursed Labor: Re-billable event labor with a net return of 10% to the theatre is projected for selected theatre events, primarily those not involving the community theatre. Again, the source of the numbers can be found in the Rent and Event Labor Calculator in the Exhibits Section of this report. · Reimbursed Event Expenses: Income from charges to clients for services and equipment provided in-house or through outside agencies. It would cover internal items like sound and lighting systems, follow spots, and piano, and such external items such as emergency medical technicians, police, and professional stagehands. · Me.rchandise Commissions: Commissions paid to the theatre in exchange for the right to sell merchandise in the building. It is anticipated that this event would be small and applied only to commercial concerts. Ticket Maintenance Surchsqqe: An amount added to each paid ticket that is retained by the theatre. The idea is to collect maintenance money from the patrons who use the building and therefore receive the benefits from its upkeep. For the purpos~.~of this estimate it has been applied to all tickets sold for the year and that ~he-thir,~iof the For Profit and Not for Profit days will use paid tickets. Non-ticketed a~ities~_~d meetings on the second level would not be assessed the surcharge. -~ ~ ;:: -~-~ Namin.q Ri.qhts Revue: The full report by Joyce Julius & Associates is in the Exhibits Section of the report. It is assumed for this report that a naming sponsor is secured and $17,500 of the revenue is applied to each year's annual operating budget, per the breakout discussed in the Finance Section of this report. · Grants: Most granting agencies are not interested in supporting operating budgets, so this area may be most productive in supporting programming initiatives. The potential for revenue from this area is also affected by the personnel and time available to pursue sometimes arduous granting requirements. · Spons~rshi~ps/Ad Sales/Pour, Rights; Event sponsorships are developed per event, depending on the objectives of the program and the interested sponsor. Income from signage placed in the lobby recognizes the sensitivity to restoring the building to its most attractive state, so opportunities in this area may be limited. The right to sell non-alcoholic beverages can be put out to bid. In addition to cash, the selected vendor may also offer advertising trade-outs and promotional consideration that can assist in the marketing of the building. While this may not be a large amount of money, it should not be left off the income side of the theatre. OPERATING EXPENSES · Permanent Staff: Full-time staff salaries and benefits. In line with the principles outlined above, it is recommended that there be a full-time staff of two plus a half- time custodial/maintenanos position to manage the building. Those position~;Rnd projected salaries are Manager $38,000 Administrative Assistant/Box Office Manager $32,000 Custodial/Maintenance $18,000 · Part Time Labor (Event and Non-event): This includes the part-tim~labor~ supplement the full-time staff and recognizes that the facility is a seven day-a-week operation. Part-time labor falls into two categories: event and non-event. Some of the event labor is offset by labor reimbursement line in the revenue section. Calculation of the event labor is explained in the Rent and Event Labor Calculator included at the end of this report. The balance of non-event labor provides assistance for the permanent employees, recognizing that event loads would likely require additional staff to provide consistent, quality patron services: Event Part-time Labor is projected at $22,055 Non-event Part-time Labor: Ticket Office Cashiers/Office Help 2 workers x 4 hours x 40 weeks x $7.50/hr $2,400 Custodial Assistance 1 workers x 4 hours x 30 events x $7.50/hr 900 House Manager I worker x 4 hours x 40 weeks x $9.00/hr 1,440 Stage Supervisor I worker x 8 hours x 30 days x $20.00/hr 4,800 Stage Workers (Setup and Maintenance) 2 workers x 8 hours x 15 days x $15.00/hr 3.600 Non-Event Labor Wages Sub-total $13,1402 Overhead Costs (10%) 1,57...7. Part-time Labor Total $14,717 · Postage: Expenses from United States Postal mail, Federal Express, UPS, and postage meter expense · Office Supplies: Defined as disposable items, such as staples, paper clips, paper, etc. · Printing: Lease expense on copy machine; outsource printing for business cards and large printing projects · Dues/Subscriptions: Trade journals, professional association memberships · Legal/Accountin.q: Contingency for annual audit or other services · Telephone: Regular and cellular telephone and long distance service. Assumes three phone lines, one fax line, one Internet connection, and modest long distance usage. · Travel/ Training/ Entertainment: Projected expenses for continuing education, conferences, and other professional travel · Liability/Property Insurance: Property and liability insurance as estimated by the Compass agent. · Event Expenses: Expenses from equipment provided for building clients. It covers such external items such as emergency medical technicians, police, and professional stagehands, or specialized equipment required for events. This expense line is offset by reimbursement from building users needing the equipment or services and assumes a 20% service charge to the building for handling the acquisition of the needed services. · Ticket Office Fees: Anticipated software-licensing fees. PC packages for stand- alone box offices are available as well, many with annual maintenance and upgrade fees. · Credit Card .Fees: Fees paid to charge card companies for tickets purchased with a charge card. Some of these can be passed on to clients who use the box office to sell tickets, and that revenue is included in the Ticket Office Commissions line of the revenue projection. Bank Char.qes: Normal fees paid for banking services. Marketing and Advertising: Expenses related to marketing the building as a rental venue; does not include the cost of advertising individual events that the theatre might promote. Those costs would be a direct cost to the budget of such an event. · Membership Expense/ Newsletter: Cost of maintaining membership support program and sending quarterly newsletter. Buildin.q. repairs and Maintenance: Projected expense for sprinklers, pest control, security systems, fire alarms, lock service per norms for similar facilities. ,, Eauioment Rental: Use of specialized equipment on rare occasions. Maintenace Contracts: All contracts for preventative maintenance, including elevators, HVAC, escalators, and other major systems. · ODeratin(3 SuPPlies: Filters and other consumables for ongoing building operation: tissues, paper products, light bulbs, cleaning supplies, and stage hardware and materials. - Trash .Removal: Cost of trash removal or recycling. In some markets, this cost can be lessened by utilizing a "pick up when called" service rather than regular pickups. · Utilities: Water, electricity and gas from MidAmerican; water and sewer are city facilities. If the building is still on commercial rates when the property transfer takes place, effort should be made to change the rate to one more favorable to the new operation. Compass' figures were provided by Central States Theatres~:~s a ,~vie theater, the Englert operated 365 days a year, so it is possible that utility.coSts ~uld be less with a reduction in usage days. Nonetheless, this item has b~ud~ted-~ conservatively. , ~ -~= · Professional Services: Contingency for outsourcing professional service demands to supplement staff or preclude the necessity of hiring additional staff. · Property Taxes: Although it is hoped that the theatre will function as a tax exempt organization, the current tax liability has been included in the first year budget in case tax exempt status has not yet taken affect. · Reserve Fund: Annual set aside funds for major facility repair. The nominal amount shown in the budget will be insufficient to cover major repairs, Truly major repair items will probably require special fundreising and/or grant writing as the need occurs. This is all the more reason to create and maintain a 5-10 year capital plan to better anticipate large expenditures. Theatre 10:40 AM =n~j~et t 07/20/02 Profit & Loss Accrual Basis April 1 through July 29, 2002 Apr I - Jul 29, 02 Income Iowa City Cultural Incubator 8~737.74 Donation Seats 2,00000 Donation - Other 1 $,866 50 Total Donation 20,886.80 Event Road Race 2002 3,888 87 Winter Party Event 13,855 00 Total Event 17,743.87 Interest Inc 318.63 Merchandise Sales Kristin Gray Prints 315,00 CD sales 1,325.00 Merchandise Sales - Other 1,462 00 Total Merchandise Sales 3, t 0200 Uncategorized Income 100.00 National Trust Grant 5,019 14 Save America's Treasures 71.39 Total Grants 5,090 53 Fundraising Expenses Fundraising Council 4,000.00 FundraisJng Expenses - Other 1,715.06 Total Fundraising Expenses 5,715.05 Building Improvements 18,09339 Payroll Expenses 14A 52.30 Architect Fees 15,543 52 Memberships 11500 Bank Charge 33 90 Legal-Prat Fees 406 00 Office 1,655 91 Postage and Delivery 165.00 Printing and Reproduction 53495 Repairs 13374 Utilities 1,201.96 Total Expense 65,14594 Net Income -14,277.20 Page 1 ~0:4~ AM Englert Theatre .7/29/o= Profit & Loss Accrual Basis April 2001 through March 2002 Apr '01 - Mar 02 Dividend Income z~1 32 Iowa City Cullural Incubator 1,600 90 Grant Funds 67,165.00 Div Income 7935 Donation Marquee Lighter 461.90 Seats 21,903 O0 Donation - Other 129,367,27 Total Donation 151,732.17 Event Winter Party Event 3,36200 Road Race 2001 5,50550 New Years Dance 1,10000 CD Ticket sales 2,39000 New Years 6,274.00 Gift Received 1,500 00 Event ~ Other 3,620 50 Total Event 23,752.00 Interest Inc 8,481.19 Merchandise Sales CD sales 4,604.50 ~ ~,_~ Merchandise Sales - Other 39700 Total Merchandise Sales 5,001 50 Uncategorized Income 56,2~ 9.49 Total Income 314,372 02 Grants National Trust Grant 1 ~774.20 Save America's Treasures 459.72 Total Grants 2,233.92 Property Taxes on Building 20,301.64 Fundraising Expenses Other 155.58 Road Race 200'1 1,38501 CD Production 3,292.63 Englert Night Out 1,288 76 Jazz Event 218.22 Total Fundraising Expenses 6,338.40 Building Improvements 126,95546 Payroll Expenses 28,28082 Demolition 371 57 Publicity 906 49 Archdect Fees 40,473.94 Memberships 630 O0 Ads 47.50 Bank Charge 557 45 Dues and Subscriptions 2890 Insurance 10,414.50 Interest Exp 23,710 O0 LegaI-Prof Fees 3,400 O0 Licenses and Permits 2000 Misc -24.62 Office 4,639 76 Postage and Delivery 571 59 Printing and Reproduction 3,073 79 Utilities 19,966 59 Total Expense 292r897 70 Net Income 21,474.32 Page 1 10:41 AM Englert Theatre o7/2 /o2 Profit & Loss Accrual Basis April 2000 through March 2001 Apr '00 - Mar 01 Income Div Income 962 Donation Marquee Lighter 220.00 Seats 6,129.50 Donation - Other 805,16499 Total Donation 811,514.49 Event New Years 3,17000 Gift Received 777.50 Event - Other 39,828 73 Total Event 43,77623 Interest Inc 4,91450 Merchandise Sales 2,81039 Uncategorized Income -8387 Total Income 862,941 36 Expense Gain/Loss on Sale of Securities 1,374 76 Payroll Expenses 2,60760 Demolition 825.15 Publicity 5400 Architect Fees 000 Memberships 21500 Ads 81380 Bank Charge 766.87 Dues and Subscriptions 35 00 Entertainment 4,24050 Insurance 4,70080 LegaI-Prof Fees 5600 Licenses and Permits 50000 Meals & Entertn 916.94 fl/sc 65309 Office 300 98 Postage and Delivery 1,93! 00 Printing and Reproduction 4,224 63 Rent on Equip 97045 Repairs 52970 Utilities 2,036 92 Total Expense 27,75321 Net Income 835,188.15 Page I Theatre 10:43 AM =n~e~ L 07=9/02 Balance Sheet Accrual Basis AS of March 3'1, 2001 Mar 31, 01 ASSETS Current Assets Checking/Savings ISB - HiFi Account 158,296.28 ISB Non-profit Checking 32,159 01 Dain Rauscher Account 85,38996 Englert Theatre 51 24 Total Checking/Savings 276,895 49 Accounts Receivable Pledges 331.396 85 Total Accounts Receivable 331,396 85 Other Current Assets Pledge Discount -64,62885 Total Other Current Assets -64,628 85 Total Current Assets 542,664.49 Fixed Assets Land 338,720 O0 Building 305,600 O0 Total Fixed Assets 644,52000 TOTAL ASSETS 1,187,184.49 LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities Payroll Liabilities 139.20 Property Taxes 11.894 36 Total Other Current Liabilities 12,033.56 Total Current Liabilities 12,033.56 Long Term Liabilities Note Payable-City of Iowa City 338,72000 Total Long Term Liabilities 338,72000 Total Liabilities 350,75356 Equity Retained Earnings 1,242 78 Net Income 835,188 15 Total Equity 836 430 93 TOTAL LIABILITIES & EQUITY 1,187,184.49 Page t 10:46 AM Englert Theatre 0?/29/02 Balance Sheet Accrual Basis AS of July 29, 2002 Jul 29, 02 ASSETS Current Assets Checking/Savings lSD - HJFi Account 150,369 31 lSD Non-profit Checking 7,76865 Dain Rauscher Account 135,022.32 Englert Theatre 51.24 Total Checking/Savings ~93,~1 Accounts Receivable Pledges 234,691 11 Total Accounts Receivable 234,691 11 Other Current Assets Pledge Discount -64,628 65 Total Other Current Assets -64,628 85 Total Current Assets 463,27378 Fixed Assets Land 338,72000 Building 305,800.00 Total Fixed Assets 644,52000 TOTAL ASSETS 1,107,793.78 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 157.46 Total Accounts Payable 15746 Other Current Liabilities Payroll Liabilities 1,578 27 Total Other Current Liabilities 1,578 27 Total Current Liabilities 1,735 73 Long Term Liabililies Note Payable-City of Iowa City 262,430 00 Total Long Term Liabilities 262,43000 Total Liabilities 264,15573 Equity Retained Earnings 857,90525 Net Income -14,27720 Total Equity 843,628 05 TOTAL LIABILITIES & EQUITY 1,107,793 Page t Englert 0 year Operating Budget 2002 2003 2004 2005 2006 2007 Revenues: Theater Rental $0 $0 $40,000 $00,000 $82,600 $85,904 Third Floor Rental $15,000 $15,000 $15,00C Meeting reception 3,000 5,000 8,200 8,528 Seg-presented events/fund misers 23,752 30,000 40,000 50,000 60,000 63,000 membership dues 6,000 10,000 12,000 12,000 Box Office Commision 2,000 2,080 Food/Beverage/Bar Net Profits 6,000 12,000 16,000 10,640 Reimbursed Labor 10,000 23,079 24,002 Reimbursed Event Expenses 7,500 7,800 Merchandise 5,002 5,000 5,000 5,000 5,000 5,000 Merchandise Commission (25%) 250 260 Ticket Maintenance Surcharge ($75) 6,000 13,000 14,352 Donations/Naming Rights Revenue 153,407 300,000 300,000 50,000 10,000 6,000 Grants 67,165 2,082,299 50,000 30,000 5,000 5,000 InterestlDividen Income 7,210 Uncategorized Income 43,189 Sponsorships, Ad Sales & Pour Rights 3,000 5,000 7,500 7,500 In-Kind Donations 45,535 30,000 40,000 30,000 Total Income 355,268 2,447,299 493,000 288,000 267,929 275,066 Operating expenses: permanent staff 28,280 39,260 70,118 88,000 91,666 95,486 event part time labor 5,000 22,055 23,819 25,694 non-event part lime labor 6,000 14,128 14,717 15,306 Labor total 28,280 39,260 81,118 124,183 130,202 136,486 postage 564 800 1,500 2,000 3,000 3,120 office supplies 4,567 1,200 1,300 1,400 1,500 1,550 pdnting 3,073 4,000 4,500 4,800 5,000 5,200 dues/subscnptions 659 700 790 750 750 800 Legal/Accounting 3,400 2,000 2,000 2,000 2,040 2,122 Travel/Trianing/Entartainment 200 220 230 250 260 Liability/property insurance 10,415 12,000 12,960 13,996 t 5,085 16,292 Property Taxes 20,302 Event Expenses 6,338 4,000 4,500 4,800 5,000 5,200 Ticket Office Fees 1,0O0 1,200 1,500 1,560 Credit Card Fees 100 1,000 1,200 1,500 1,560 Sank Charges 367 400 600 700 900 1,000 Marketing/Advertising 956 500 40,000 30,000 10,000 7,800 Membership Expense 600 800 1,000 1,040 Grant Expenditures 2,234 Building Repairs & Maintenance 372 500 3,000 4,000 5,000 5,200 Equipment Rental 200 600 1,000 1,500 1,560 Maintenance Contracts 5,000 8,000 10,000 10,400 Operating supplies 500 2,000 3,000 3,500 3,640 Trash removal 800 900 1,000 1,040 Interest Expense 23,710 18,370 12,660 6,540 Licences and Permits 27,500 27,500 Professional Services 40,474 103,153 103,153 1,000 2,000 2,000 Vertical Infrastructure Costs 126,976 1,289,000 1,319,500 41,42-5 Utilities 19,456 25,000 30,000 38,300 39,832 Reserve fund 5,000 5,200 expenses 292,143 1,529,383 1,656,211 250,799 tota~ ~--254,545 Net Revenue in Excess (Deficit) of Expenses 63,125 917,916 (1,163,211) 37,201 Beginning Cash Balance 275,896 262,731 1,175,720 1,872 [2~,3J 6, ~ 44,65~ Collection of Pledges 76,703 76,703 76,703 Payment of Building Mortgage (76,290) (81,630) (¢7,340/ (93,460) :" Ending Cash Balance $262,731.24 $1,175,72024 $1,87224 $22,31524 $441,6~8:~-~': ~.5,207 ~,~ United States Department of the Interior NATIONAL PARK SERVICE 1849 C Street, N.W. Washington, D.C. 20240 H36(2255) Ms. Justine Zinuner ~OV I ~001 (~'~.~ ¢:. ~'.. The Englert Civic Iheatre 221 E. Washington Street Iowa City, Iowa 52240-3927 Dear Ms. Zimmer: As part of the Federal Save America's Treasnres initiative to preserve significant historic properties or collections~ I am pleased to offer your organization a matching grant award of $365,000 to preserve the Englert Civic Theatre. Your project was chosen by the Congress and identified in the fiscal year 2002 Appropriations Act Congratulatious! In order to receive these funds your office must complete and submit a Project Information workplan summarizing what will be accomplished with this grant and matching share, as well as a budget outlining the proposed expenditure of these funds and required nonfederal matching share. Thc required nonfederal matching share of $365,000 must come from nonfederal sources, and must be expended during the grant period for work on this project. Activities to be supported must be those which are directly relatcd to and necessary for the repair and prcservation of thc historic property or collection identified in the Appropr:mtion Act. Allowable costs inclndc staffsalaries, travel, consultants, construction materials, and equipment, among others. In addition, you will need to complete the required standard government for~ns: SF-424 Application for Federal Assistance. Bndget Form, SF-1194 Signature Card, and Assurances and Certifications forms. These forms and a checklist are enclosed m this funding packet. Also included in this packet are a SF-270 Request for Advance or Reimbursement, SF-272 Federal Cash Transaction Report, and progress report format sheets. These can be signed by the duly designated chief executive officer identified m your Project Information Form. If you need assistance m filling out these forms o~/have questions on what is an allowable cost or eligible matching share contribntion, please contact Virginia Frceman at (202) 343-6005 I am pleased that yonr organization has bcen selected to receive funding from the Save America's Treasures grant program After you rctnm the enclosed furms, we will send a Grant Agreemcnt to you Sincerely, Joseph T. Wallis Acting Chief. Heritage Preservation Services cc: SHPO Enclosures 0g'21/01 THU I].:09 FAX 312 939 5651 N,T.H.P CHICAGO MIDWEST OFFIGE NATIONAL TRUST ~ HIS~IC P~VA~ON May 23, 2001 ~oject M~ager ~e Engle~ Civic ~, Inc. 211 ~t W~hin~on Iowa Ci~, IA 52240 Dear Mr. Shaw: It is a plemure to info~ you ~at Englcfl Civic ~e~er, ~c.'s a~li~don for a Cyn~ia W~ Mitchell Fund ~nt has be~ approve. We have allocated $3,300 to match loc~ ~ds to help suppo~ th~ development of~ ~or restoration pl~ for ~e E~ ~ea~r. This g~t w~ made possible ~ ~ by a ~lt fi~m George P. ~tchell to ~blish ~e W~ds Mitchell F~d for Historic ~tefio~ to assi~ in thc p~afion, restoration, ~d intew~tafion of historic intefiom ~ Nafio~l T~st is ve~ sup~ive ofyo~ word,while pre~mion activiW. It w~ sel~ted from among a I~ge n~ber of qualified applic~ts coming for a vc~ limited ~ount of ~n~. We hope that ~is le~er of suppo~ ~d financial co~i~nt ~ll ass~ your organimfion in raising ~y addifion~ ~ds n~ed for ~is hi~o6c pwse~ation ~tlvi~. At,prance of~s want is i~i~tion of yom' wifi~es~ to conduct your project ~ con fox,ce with the follow~g special conditions: Requir~ ~teh. Th~ ~l must ~ match~ wi~ o~er ~nd~g on a one-to one Evidence of the match must be ~bmiUed ~ the final repo~ ~utr~ ~ Para~ph 10. 2. Natiunal T~st Concurrence ~th Consultant Selection, We cono~ with your selsun of Margaret Rochelle for ibis project. If you ~sh to ch~ge ~onsul~ts, new approval must be sou~t &om ~e Na~onal T~st 3. Com~ti~ve Pr~urement Pr~s. You a~ee ~at all pr~ement of goods ~d se~ces shall ~ conducted in a manner that provides m~m~ open ~d ~ee competition. ~en a procurement exceeds $10,000, you mu~ seek m l e~ thee (3) comp~tivc bids or quotes. (~is applies m ~ pr~urement ~ter ~ $10,000 ~at is p~ of~s ~t-~sisted proj~t, whe&~ financed ~u~ PSF &rids or t~ou~ ~e ma~h~g f~ds ~at m~e up the rvst of~e project's approved budget.) Although it is not ~ways n~cssa~ to select ~e lowest bi~ ~ e~l~on for ~e selection must be do~ument~ using the at~ched ~o~petitive Bid Rein Fo~ which should be reta~ed in your files and made awilable to the National T~ upon ~quest, You ~ould ~o maintain pmc~uws to ensu~ ~at proc~ment of goods ~d se~ices, inelud~g consul~( semi,es, do not present a ~nflict of ~tere~. Prole~'ng the Irreplaceable The Historical Ditdsion of the Department of CultttralAffairs STATE HISTORICAL SOCIETY OF IOWA l~ere past meets future November 17, 2000 Iowa City Community ltteater John F. Shaw PO Box 827 Exhibition Hall, Jotmston County Fairgrounds. 4265 Oak Crest Hill Road Southeast American Gothic House Iowa City, IA 52244- EIdon RE: Historic Site Preservation Grant # HS01-016 Blood Run N/II. Rehabilitation of the Englert Theatre L,'~rchwond Dear Mr. Shaw: ~cntentual Btfilding The State Historical Society of Iowa is pleased to mmounce that your Historic Site Preservation :owa City Grant Program (HSPG) project ;vas approved for funding up to a maximum of $100,000.00. There were 30 applications requesting $2,432,651 million. We were able to fund 20 projects fully, ~tatthew Edcl Blacksmith Shop and 1 project with partial funding with the $1,695,000 million available. Congratulations to you darshalltown on your success! d)bie Gardner Cabin Final Ifistoric Site Preservation Grant Program Funding recommendations were made on ~rne "ark November 16, 2000 by the State Historical Society Board of Trustees. A listing of the grant recipients is enclosed. ~,,va Historical Building ~es Motues Our IlSPG grant assistant, Lavon Grimes, will be preparing a grant contract for your project, She will be in touch with you within the next month, to discuss the contract requirements. All contracts must be signed by the end of January 2001. Do not begin work on your project until Iomauk Go¥crnor's Home yon have a fully slgued contract. nion Sunday School lermont Museum lermont In celebration of your award, a special presentation will be made to you and your legislators on January 31, 2001 at the State Capitol of Iowa. Please set aside this date now. We will be sending um Grove Governor's lfome you more infum~ation on the celebration later in December. If you have any questions, please contact Lavon Grmnes by phone at (515) 242-6194 or by email at Lavon. Grin~esOadca.state.ia.us. We Iook forward to working with you on your project. Sincerely, ,ttllcil Bluffs Patricia Ohlerking. i ' '' co :-~. PLO/lag IOWA HISTORICAL BUILDING otto East Locust · l)cs Moiucs, h)wa 50)J 19 0290 I'hmlc: (515) 281 6412 · Fay ~, I ~,~ ~i · (~:it)~ t~r ~q I q~ ~o~ ~,~" ... · THOMAS J. VILSACK, GOVERNOR SALLY J. PEDERSON, LT. GOVERNOR [~.~, , i _ .. ~ ', O'~PARTMENT OF CULTURAL AFFA RS ~'"~ ~ b ANITA WALKER, DIRECTOR May 9, 2001 ' STATE HISTORICAL SOCIETY OF IOWA IOWA ARTS COUNCIL Justinc Zimmer, Executive Director Englert Civic Theatre, Inc. 221 E Washington Street Iowa City, IA 52240 Dear Ms. Zimmer: I am pleased to inform you that the Englert Civic Theatre, Inc. has been awarded a grant of $10,000 by the Iowa Community Cultural Grant (ICCG) program of the Iowa Department of Cultural Affairs. In this application cycle we received $465,000 in funding requests. We were able to award $162,490 to 35 projects. Iowa Community Cultural Grant funding is appropriated from the state general fund. Budget shortfalls this year put this application cycle in jeopardy. Thanks to calls, letters and e-mails from many organizations like yours, this grant program was saved from cuts. It is important that our lawmakers know of the work the Iowa Community Cultural Grant does in communities ~cross Iowa. You can help deliver that message and secure the future of this program. Please write your local legislators, Senator Joe Bolkcom and Rep. Vicki Lensing, and tell them that you received an Iowa Community Cu. ltural Grant for your project. Invite them to visit your project and learn more about the work your organization is doing. You will have an opportunity to thank your legislator personally at Cultural Advocacy Day at the State Capitol February 22, 2002. Mark your calendar and plan to attend. You w/Il be receiving detailed information about Cultural Advocacy Day as it gets closer. Before you begin your project: · Sign and return both copies of the enclosed contract · Send us a copy of your letter notifying your legislators of your ICCG grant Please take the time to read through the enclosed contract outlining the terms and conditions of your grant. Make sure you sign both copies and return them to Jill A. Hermann at the address listed. Once we have received the signed contracts and copy of your letter to your legislators we will send you the necessary reporting and reimbursement forms. Congratulations on your grant award. If you have any questions call Jill at (5 l 5) 281-8352. Anita Walker, Director Department of Cultural Affairs P.S. Have you registered to attend the statewide Imagine Iowa Cultural Caucus on June 8? Hurry and sign up. It's City of Iowa City MEMORANDUM TO: City Council FROM: City Manager DATE: November 30, 2001 RE: EngleH Theatre Building The City of Iowa City purchased the Engled Theater.~ing from Pohl Family Prope~es on February 8, 2000 for approximately $753, 400. The ~i~ paid $700,000 and the remainder was paid by the Iowa City Jazz Festival, repre~al~tljng the Englert Coalition, from funds previously raised by the Coalition. The pumhase agreement providl~ that if the City has not entered into a purchase agreement with a not-for-prerit entity (intended to be Jazz Festival or the Englert Coalition) within.96'-' months to sell the building, Pohl Family Properties will purchase the building back for the odgJnal purchase pdce. The 9-month period ends November 8, 2000. The City, in turn, agreed to sell the building to Iowa City Jazz Festival (representing the Englert Coalition) for $500,000 if purchased within the 9-month pedod specified. This was to represent a $200,000 contribution by the City to this initiative. We have projected the costs to the City associated with ownership of the Englert Building for the 9-month pedod as follows: Lost Interest Income over 9 Months on $700,000 $34,125 Property taxes (pro-rated for the 9-month pedod) $16,888 Management of rental units, building maintenance, utility costs, etc. $13,564 Revenue from rental units (February 8 - July 31) ($ 7,450) Additional miscellaneous costs (recording fees, insurance, etc.) $ 1,321 Total projected expenses (February 8 - November 8) $58,448 ThR recent r o~ fro th~ PO 'ti.~ i fnr he Ci*' .-. ~... h,~ .'~ i . e rece_-n[~_&9.~ =_, ~,L.LE~rom ~..~ Englert .. al~ ,~n ,s ,~ t, ,y t .....l,,,. bu~,d,ng to the Co~ a four-year, n~interest contract with $100,000 down and payments of $100,000 (.~'~o_n.. November 8of each of//the succeeding four years. The Finance Director estimates the · ' ely $65,000 in inlerest revenue over that four-year contract period on the outstanding balance. Including the proposal for a contract sale, the total cost to the City could be as follows: Losl interest plus actual costs (February 8 - November 8, 2000) $ 58,448 Lost interest on no-interest, four-year contract sale $ 65,000 Initial City commitment to wdte down the cost to the Coalition by ~2Q0,000 $200,000 Total $323,448 IOWA STATE BANK ~]~& TRUST COMPANY P.O. Box 1700, Iowa City, IA 52244 319-356-5800 * I 800-247-4418 * www.isbt.com February 6, 2002 Vision Iowa Board Iowa Department of Economic Development 200 East Grand Avenue Des Moines, IA 50309 To whom it may concern: This letter is to verify the Iowa State Bank & Trust Co. loan commitment to the Englert Civic Theatre Inc. This loan commitment is to bridge cash flow requirements until pledges are received. The loan would be in an amount up to $300,000.00, based upon 90% of firm pledges. The majority of the loan will be based upon the term of the pledges. Collateral will be an assignment of all pledges. Please let me know if you need any additional information. I can be reached at (319) 356-5832. ~, nc}ere/ly, Senior Vice*I'resident KLJ:jyb cc: Justine Zimmer Project Coordinator Do'~nto',vn Office: 102 S Clinton St ~ Clinton St. Drive-up: ~25 S. Clinton St. * Keokuk St. Office: Keokuk St. & Hwy 6 Bypass Rochester Ave. Office: 2233 Rochester Ave * Coralville Office: I I0 First Ave./Coralville Member FDIC 1~ Equal Housing Lender FIRSTAR ~ Without Bound~es December 21,200l Vision Iowa Board Iowa Department of Economic Development 200 East Grand Avenue Des Moines, IA 50309 To Whom It May Concern: It is with pleasure and pride that I write in support of funding for the Englert Civic Theatre Inc. We have seen our community, both private and public, embrace this project and we see it as a strong contribution to the performing arts for our community and state. It will be a major destination point. Projects that benefit so many, across all socio-economic lines, have our fullest commitment. Our bank has contributed $10,000 in cash to date, and our employees are committed with dollars and time. I strongly endorse this project, personally and corporately, and feel that it matches up so well with the stated objectives of Vision Iowa. Sincerely, Robert M. Sierk President HILLS BANK AND TRUST COMPANY 131 MAIN STREET HILLS, IOWA 52235 D~Ar[GHT O. SEEGMILLER PH: 319o679o2291 PRESDENT December 24, 2001 Vision Iowa Board -:-' :' Iowa Department of Economic Development 200 East Grand Avenue Des Moines, IA 50309 Re: Englert Theatre Dear Friends: We understand that the Englert Theatre will be coming to you with a grant proposal and this letter is intended to show our support for the Englert Theatre project. The Englert Theatre has received strong grassroots support in the community and we believe that it will provide a focal point for arts related activities in Eastern Iowa, We also believe that it will provide an important destination point for downtown Iowa City as well as to provide an alternative to alcohol based activities for students and adults. We ap_.pree~ate your consideration of this very important community project. If you have any q_~.ec~o~s, pleait~feel free to contact me at 1-800-445-4566. Dwight O. Seegmiller President DOS/bn SERVING THOUSANDS OF CUSTOMERS ONE AT A TIME. THE GAZETTE COMPANY P.O. BOX 51 I, CEDAR RAPIDIS, IOWA 52406-0511 ~..oUck Peters Chief Operating O~llcer (319) 368-8878 FAX: (319) 3.98-8395 cpeters@fyiowa.com January 2, 2002 Vision Iowa Board '~; C c._ Iowa Department of Economic Development ~ Y ~-- -TI 200 East Grand Avenue ~' coo :-~ Des Moines, IA 50309 : ,-~ ~ i'T'I Re: Englert Theater - Iowa City ~-3 ~ Dear Vision Iowa Board: I am very impressed with the Englert Theater Project. Our Gazette Foundation Board has met with their board twice, and are in the process of considering a grant from The Gazette Foundation, with a decision to be made in the first quarter of this year. We have taken a tour of the building, and have reviewed the plans for renovation. We are impressed with this project not only because it rehabilitates this historic building, but because it will provide quality, non-alcoholic, entertainment opportunities in downtown Iowa City. Those activities will draw people to downtown Iowa City, which is good for all of Eastern Iowa. The grass roots support for this project is remarkable, making it a true community project. I urge you to give careful consideration to their request. Sincerely, Chuck Peters Chief Operating Officer Iowa City ess t;ltlzen Ill 1725 N. Dodge St. · P.O. Box 2480 · Iowa City, IA 52244 · 319/337-318 Dec. 31,2001 Michael Gartner .-., · .:~ ..... Vision Iowa Board ~z: C:, ~ Iowa Department of Econonic Development :: ~: ~ -,-, 200 E. Grand Ave ..... Des Moines, IA 50309 ~-z -- Dear Mr. Gartner, Please accept this letter of support for the Englert Civic Theater group oflowa City and its effort to revitalize a local treasure, the Englert Theater. The efforts of this group promise to enrich the lives oflowans by creating an attractive venue for a wide variety of cultural and educational events in downtown Iowa City. The Iowa City Press-Citizen and the Gannett Co., Inc. are fully behind this project. Earlier this year, the Gannett Foundation gave $10,000 to the Englert restoration effort. In addition, the Press-Citizen has committed $90,000 over five years in in-kind promotion and printing services. As publisher of the Press-Citizen, I feel that this group will succeed in its efforts to restore the Englert to its former glory. This is an important grassroots effort that deserves my support. Please feel free to contact me with questions or comments. All. the best fo[ gre__at New Year, President and Publisher M~ch 6, 2002 }} ~ ~-' Vision Iowa Bo~d ~ Iowa Dep~ent -: - of Economic Development '~ 200 E~t G~d Avenue -~,~- Des Moines, Iowa 50309 >' ~* To ~om It May Concern: Plebe allow me to in~oduce mysel[ My nme is David Pierce, president of~e Iowa Ci~ Co~ ~ea~e ~CCT). I m ~ting in suppo~ of~e Engle~ ~ea~e's application for a CAT gr~t. ICCT h~ been a pm of~e Iowa Ci~ ms scene since 1956. We c~ently c~l a building at ~e Jonson Co~ty F~rgro~ds o~ home. ICCT has been involved in the effo~ to p~ch~e ~d renovate ~e Engle~ since ~e effo~ beg~ in 1999. We were paa of the loose ~oup of individ~s ~d org~izations ~at evenmlly coalesced into ~e Engle~ group. O~ interest in the Engle~ project is somewhat selfish. ~ opemtion~ Engle~ ~ea~e MIl ~low ~ to move o~ perfo~ces from o~ c~ent space, which is ou~ide the Iowa City city limits, to domtom Iowa Ci~. We ~ticipate ~at ~is move ~11 enable us to grow o~ audience ~d vol~teer b~es ~d help ~ remain a vibmt p~ of~e Iowa Ci~ ms comm~i~. ~is move will ~so m~e o~ lives considerably e~ier - because we rent space ~om ~e Jonson Co~ Fair Bo~d, we have to completely move out ofo~ thea~e eve~ May ~d ~en completely move back in eve~ Aught. Being at ~e Engle~ will me~ we c~ say goodbye to ~is ~duo~ process. As a reset, we have donated $50,000 to ~e Engle~ cause. But ~ opemtion~ Engle~ ~11 benefit more ~ ICCT; it MIl ~so benefit Iowa City ~ a whole. Iowa Ci~ cu~ently lacks a low-cost, public peffo~ce space. In a comm~i~ ~at is o~en a leader in the ~s for ~e state oflow~ ~is lack ora low-cost alternative prohibi~ m~y comm~ity ~ts ~d pe~o~ance org~izations from finding a wider audience. ~e Engle~ ~11 fill this void. ~ you for allo~ng me ~e oppo~unity to cogent on behalfoflCCT. If you would like to contact me ~her, you may do so ~ough ~e ~eatre at 319-338-0443. Sincerely, David Pierce S 0 M ETlll N GO RE~T: i:s HAppi:~iINGi Vision Iowa Board Iowa Department of Economic Development 200 East Grand Avenue Des Moines, IA 50309 Dear Vision Iowa Board, The Englert Civic Theatre Incorporated will provide a standard medical insurance plan for all fulltime Englert employees working on the Englert Civic Theatre project. The Englert Civic Theatre Inc. will pay for at least 50% of the cost of the medical insurance. Sincerely, Mike Partridge President Englert Civic Theatre Inc. E~/[{lert Civic Theatre, Inc. :X 221 E. Washington Street ~ Iowa City, Iowa 52240 (3'L9) 688~2653 ~: www.engle, rt.or[~, Iowa City downtown University of Iowa U1 Hospitals and Clinics Mercy Hospital "?' ~_~ll~. ~'''~":~ii VA Hospital , ~ - , ,, D' -~ t "" TOTAL PROJECT BUDGET STAGE ONE; Roof and Wall: Remove abandoned mechanical items (~ roof, existing roofing system, existing mechanical sheds and skylights; install new insulation and membrane roofing system and skylights; remove 1984 wall dividing theatre. COST:COMPLETED, ALL BILLS PAID $136,500 Bu/Yding Acquisition: Purchasing the building. COST: IN PROGRESS, WILL BE COMPLETED IN 2005 $877,000 STAGE TWO Code Compliance: Install dedicated water service, sprinklers, mechanical dampers, smoke vents, stage rigging steel, fire curtain, new electrical service, fire alarm detection system and miscellaneous fire doors and fire rated construction, all as required for code compliance, occupancy permit; survey building, remove friable asbestos; dressing rooms: dean, paint where applicable, seal concrete floor, refurbish existing sinks; demolish existing toilets and install new toilets; construct second egress through orchestra pit, provide new door; construct stairs out of orchestra pit. COST: $502,000 Accessibility and Theatre Restrooms: Install new elevator serving three floors; renovate existing stair tower; install two chair lifts; demolish/reconfigure existing men's restroom 1 floor, women s restrooms 1 and 2 floors, as required; install new theatre restrooms, 1st and 2r~ floors; professional fees. COST: $369,000 First and Second Floor North (vestibule, lobby and foyer, 2n~ floor lounge, 2"~ floor apartment - Arts Iowa City Gallery, corridor and stairs): demolish existing finishes and concession counter; refinish/restore vestibule, lobby and foyer to match historic finishes; construct doors, archways, balusters, ticket booth, filigree, paneling and millwork as per original 1926 drawings; repair and refinish floors, walls and ceilings; install telecommunications conduit, cabling and terminations; purchase box office/office equipment. COST: $418,000 Auditorium/Balcony, Orchestra Pit and Stage: Auditorium, balcony, orchestra pit, stage, theatre lighting, sound and stage furnishings; repair and refinish floors, walls and ceilings, auditorium seating and projection booth; install new theatre lighting and sound system, stage furnishings, rigging and act curtain; provide brass railings at orchestra pit. COST: $894,000 3~ Floor Sleeping Rooms (Arts Incubator); Mechanical upgrade, remove select walls and finishes; install new toilet; build new wails as required; finish floors, walls and ceilings; upgrade electrical and lighting; tighten windows; install telecommunications conduit, cabling and terminations; mechanical upgrade; reptace rooftop mechanical units. COST: $381,000 Exterior Work, Basement South and Miscellaneous: North facade, marquee, dressing rooms; remove non-historic finishes at north facade, dean, repair historic materials as required, construct store front east (new elevator lobby) to echo existing store front to west; replace stone finials; repair and repaint marquee, re-establish running lights; provide concession stand equipment and utilities, janitorial / maintenance equipment. COST: $44,500 Professional Fees: Architecfure/, Engineering, Theatre Design, Lega/~ $3.__75,225 TOTAl. STAGE II,VERTICAL INFRASTRUCTURE COST: STAGE T~REE: NOT INCLUDED IN THE CAT GRANT REQUEST Opening and Administrative costs ~ . TOTAL P, ROJECT COST: i "! ~:~:~ No. W00244069 ~~'~ ~ Date: 07/11/2000 ~0~AD~0002~27~ THE ENGLERT CIVIC THEATRE, INC. CERTIFICATE OF INCORPORATION THE ENGLERT CIVIC THEATRE, INC. has filed articles of incorporation in this office and is hereby authorized to transact business asa corporation under the provisions of Iowa Code chapter 504A. The document was filed on July 10, 2000, at 02:34 PM, to be effective as of July 10, 2000, at 02:34 PM. The amount of $20.00 was received in full payment of the filing fee. :R J CU~LVER SEc~ATE CHESTE , [ S;] i . ARTICLES OF INCORPORATION OF THE ENGLERT CIVIC THEATRE, INC. The undersigned incorporators, desiring to form a corporation pursuant to tho provisions of the Iowa Non-Profit Corporation Act (Chapter 504A of the Code of Iowa, 1999), adopt the following Articles of Incorporation: ARTICLE I NAME TI~ naw.~ of this Corporation is TI~ Englcrt Civi~ Theatre, Inc., h~ina/~ r~erred to as ARTICLE li PURPOSES The purposes for which the Corporation is formed are as follows: · ., Section 1. The Corporation is organized exclusively for charitable, scientific, educational proposes within the meaning and as permitted by Sections 170(¢)(2) and 501(cX3) of the Internal Revenue Code of 1954 (or the corresponding provisions of any future United States Internal Revenue Law). Section 2. Subject to the charitable, scientific, literary and educational purposes set forth in Section 1 oft/tis Article II, the Corporation has the following objectives: (a) To own, maintain and/or operate one or more performance spaces as a venue for bringing performing arts to a broad cross section of the community and eastern Iowa. (b) To produce and/or promote community cultural events and performances. (c) To preserve one or more historic community landmarks as community performance spaces. (d) To coordinate, promote and provide a range of public events and programming in (e) To highlight the range and talents of performers, artists and ensembles who live in the Iowa City/Coralville area and to provide oppon'unities for public performance of their work. (0 To provide public education and opportunities for exposure to the performing arts. (g) To provide opportunities for amateur and professional actors, musicians and other artists to publicly perform their works. (h) To encourage children to grow in their appreciation of the performing arts. (i) To possess and exercise all of the rights, powers and privileges now or berea/~ confened upon non-profit corporations by Section 504A of the Code of Iowa (1999) ns amended fi.om (j) To do all and eve~hing suitable and proper for the accomplishment of any of the purposes, or the ~ttai~n~t of any of the objects, or the fx~therance of any of the powers of the (k) To en~ge in any lawful act or activity for which nonprofit corporations may be organized and conducted under Chapter 504A of the Code of Iowa. ARTICLE IH POWERS Section 1. This Corporation shall have and exercise such powers as are required by and are comistent with the foregoing pusposes, including the power to acquire and receive funds and property of every kind and nature whatsoever, whether by purchase, conveyance, lease, giR, gnmt, bequest, legacy, devise or otherwise and whether in trust or otherwise, and to own, hold, expend, make gifts, grants and contributions of~ and to convey, transfer and dispose of any funds and property and thc income therefrom in fufdaemnce of the p~ of this Corporation hereinahove set forth, or any of them, and to lease, mo~ge, encumber, a~A use the same, and such other powers that are consistent with the foregoing purposes and that are afforded to this Corporation by the Iowa Nonprofit Corporation Act. Section 2. All powers of this Corporation shall be exercised only so that the activilies of this Corporation shall be exclusively within the contemplation of Section 170(c)(2) and 501(cX3) of the Internal Revenue Code of 1954, and of the Iowa Nonprofit Corporation Act; provided further, however, that the reference herein to the Iowa Nonprofit Corporation Act shall not permit, and shall not be taken as permitting, this Corporation to have or exercise any power which is not within the contemplation of Section 170(c)(2) and 501(c)(3) of the Internal Revenue Code of 1954; and provided finally tha~ this Corporation shall not cany on any activity not permitted to he carried on by a corporation that is exempt fi.om federal income taxes under Section 509(a) of the Internal Revenue Code of 1954 as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1954 or by a corporation that is described in, and contributions to which are deductible for federal income t~x purposes under Section 170(eX2) of the Internal Revenue Code of 1954. Section 3. All references in these Articles of Incorporation to a particular section of the Internal Revenue Code of 1954 shall mean and include, as now enacted or as hereaf[er amended, such section and any provision of federal law as is or may hereaRer he applicable, cognate to such section; and the references in these Articles of Incorporation to the Iowa Nonprofit Corporation Act shall mean and include, as now enacted or as hereafgr amended and such provisions of Iowa law ns may be applicable thereto. Section 4. Notwithstanding any other provisions of these Articles, the Coq~oratioa~ shall carry on any activities not permitted to be carried on (a) by a corporation exe~npt fi.omf ~ tax under Section 501(eX3) of the Internal Revenue Code of 1986 (or the corresponding pfoveaons any future United States Internal Revenue law), or (b) by a corporation, eontribulions to deductible under Section 170(c)(2) of the Internal Revenue Code of 1986 (or the correspondin~l~rovisi6ii of any future United States Internal Revenue law). Section 5. All actions of the Corporation shall be in compliance with all applicable Equal Employment Opportunity and Affmmfive Action hws as they are presently or may be hereinafter adopted. The Corporation shall e~ge in no activity which discriminates against or harasses any person beeaase of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual prefereace or status with regard to public assistance. ARTICLE IV SEAL ARTICLE V PERIOD OF EXISTENCE of duration o on . ARTICLE VI RESIDENT AGENT AND PRINCIPAL OFFICE Section 1. Resident Agent. The name and address of the Corporation's Resident Agent for service of process is Daryl Wondson, 302 Kimball Road, Iowa City, Iowa 52245. Section 2. Principal Office. The post office address of the principal office of the Corporation is 221 E. Washington Street, Iowa City, Iowa, 52240. Section 3. Change in Agent or Office. The registered agent and/or office may be changed fixxn time to time by resolution of the Board of Directors and the filing of a Statement of Change with the Secrctaty ofth-e State of Iowa in accordance with the Nonprofit Corporation Act. ARTICLE VII MEMBERS Whether ~e CoqxwaXion has members, all ma~rs requiring the vote of members, qualifi¢~6ons of membership, and other matters relating to membership shall be as prescribed in thc By-Laws of the ARTICLE VIII BOARD OF DIRECTORS Section 1. Board of Directors. The management and direction of the business and affa~ of this Corporation shall be vested in a Board of Directors. The Board of Directors shall be compo~ of not less than 9 nor more than 15 directors. The number (subject only to the foregoing limitation), classifications, qualifications, term of office, method of election, powers, authority, and duties of the Directors of this Corporation, the time and place of their meetings and such other provisions with respect to them as are not inconsistent with the express provision of these Articles of Incorporation shall be as specified in the By-Laws of the Corporation. 3 Section 2. Initial Directors. The initial Board of Directors of the Corporation is conkvosed of 13 members. Names, post office addresses and classifications of the initial Board of Directors are: Nam0 Address Classification Datyl Wcodson 302 Kimball Road, Iowa City IA 52245 Larry Eckholt 215 S. Dodge Street, Iowa City lA 52240 John Shaw 505 E. Washington Street, Iowa City lA 52240 J~rom~ Full 4642 Oak Crest Hill Road SE, Iowa City lA 52240 S~_,~ Futr~ll 311 Fairchild, Iowa City lA 52240 Michael Patridge 1220 Village Road #0, Iowa City lA 52240 Jatnes Knapp 528 Rundell, Iowa City lA 52240 Robe~ Hamel 15 Warwick Circle, Iowa City IA 52240 David Pierce 203 6~ Street #10, Coralville IA 52241 Justin~ Zimmer 115½ S. Dubuque St., #4, Iowa City IA 52240 Richard Summerwill Iowa State Bank Bldg., Iowa City lA 52240 ! aDonna Wicklund 124 N. Mt. Vernon Drive, Iowa City lA 52245 J~y Faden 840 S. Summit St., Iowa City lA 52240 Section 3. The t~rm of office of each initial Director shall be until such director's successor shall have been elected or otherwise shall qualify as provided in the Corpotation's By-Laws. ARTICLE IX INCORPORATORS Tho name and post office ~clAtesses of the incorporators of the Corporation ~ C~ ~-~-- Da~yl Wondson 302 Kimball Road, Iowa City IA 52245 Justine Zimmer 115½ S. Dubuque St., #4, Iowa City lA 52240 David Pierce 203 6~ Street #10, Coralville lA 52241 LaDonna Widdund 124 N. Mt. Vernon Drive, Iowa City lA 52245 ':~ ~,~ ARTICLE X PROVISIONS FOR REGULATION AND CONDUCT OF THE AFFAIRS OF THE CORPORATION Provisions for the regulation and coMuct of the affairs of tho Corporation, that define, limit and/or regulate the purposes and pov~rs of the Corporation, its Directors and its Members as may be o~grwise provided in these Articles, are as follows: Section 1. Restriction on Political Activity. Notwithstanding any other provision of these Articles or any provision of Iowa law, the Corporation, except to the extent permitted by Section 501(h) of the Internal Revenue Code or any future United States Revenue Law, shall not in any manner or to any extent carry on propaganda or otherwise att~npt to influence legislation, nor shall the Corporation in any manner or to any extent participate in, or intervene in (including the publishing or distributing of statengnts) any political campaign on behalf of any candidate for public office; nor shall the Corporation carry on any other activities not permitted to be carried on by a corporation exempt from federal income ~ax under Section 501(eX3) of the Internal Revenue Code of 1954 or by a corporation to which contributions are deductible under Section 170(c)(2) of the Internal Revenue Code of 1954. Section 2. Restriction Upon Net Earnings. Th~ Corporation shah have no capital stock, either authorized or issued. No part of the net earnings of the Corporation shall inure to the benefit of any director, officer, m~nber or other private individual (except that reasonable compensation may be paid for services na~ierod to or for the Corporation affecting one or more of its purposes) and no director, officer, meraber or other private individual shall be entitled to share in the distribution of any of the corporate assets on dissolution of the Corporation or otherwise (except that moneys loaned or advanced to the Corporation by a member, director or officer in furtherance of one or more of its proposes nmy be repaid without interest). Additionally: 1) The corporation shall distribute its income for each taxable yenr at such tlme and in such manner as not to become subject to the tax on undistributed income imposed by Section 4942 of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal tax laws. 2) The corporation shall not engage in any act of self4ealing as defined in Section 4941(d) of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal 3) The corporation shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent fetieral tax laws. 4) The corporation shall not make any investments in such manner as to subject it to tax under Section 4944 of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal tax laws. 5) The corporation shall not make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal Section 3. Restrictions Upon Acceptance of Gifts. No gifts or other eontribu ~fi~j~ns to Corpomaon shall be accepted by the Corporation if the use or expenditure of such conmbuuon ~s subject to any condition which Is inconsistent w~th the purposes of the Corpqra~on ~_~t~l herein, or is limited in such manner as to require the disposition of the income of its p '.ri~zipal any person or organization other than a charitable orga~i?~tinn or for other than charitable;p~ within the meaning of the Internal Revenue Code of 1954. Section 4. Interest of Directors in Contracts. Any contract or other transaction between the~a Coq~oration and one or more of its members or directors, or between the Corporation and any finn of which one or more of its members or directors is an employee, or in which they are interested, or between the Corporation and any corporation or association of which one or more of its members or directors are shareholders, members or directors, shall be valid for all purposes, notwithstanding the presence of any such member or director at the meaing of the Board of Directors oftbe Corporation which acts upon or in reference to such contract or transaction, and notwithstanding his, her or their participation in such action, if the fact of such interest shall be disclosed or known to the Board of Directors and the Board of Directors shall, neve~eless, authorize, approve and ratify such contract or transaction by a vote of a 5 majority of th~ Directors present, provided, however, that any such con~mct or transaction shall be at arm's length and not violative of the proscriptions of these A~icles ag~iast fiae Corporation's use or application of its funds for private benefit. Section 5. Execution of Doeuments. Deeds, mortgages, con~t, conveyances, and other ~ts creating conveying, granting or releasing any interest in real es~ and all other insmmaents or c.z~ra~ having or requiring the acknowledgment of this Corporation shall be sufficiently executed if signed by the President or Vice President and the Secretary or Treasurer. Section 6. Donations By The Corporation. To cany out the purposes set forfla above the Corporation may, in the discretion of the Board of Directors, make donations or gifts from surplus ~venue, if any, of the Corporation to charitable, scientific, literary and/or educational orgo~i~fions tha~ qu,~y as exempt fi-om federal income tax under Sections 170(c)(2) and 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provisions of any future United States Internal Revenue law). Section 7. Dissolution Clause. Upon the dissolution of' the Co~poration, the Board of Directors shall, after paying or making provisions for the payment of ~11 of the liabilities of the Corporation, dispose of all of the assets of the Corporation exclusively for the p~ of the Corporation in such manner, or to such organization or organiTa~ions organized and operated exclusively for charitable, educational, ~eligions or scientific purposes, as shall at the time q~mliFy as an exempt organization/s under Section $01(c)(3) of thc Internal Revenue Code of 1986 (or the provisions of any future United States Internal Revenue law), as the Board of Trustees shall determine. Any such assets no~ so disposed of shall be disposed of by thc Court of Common Pleas (or other coart having appropriate jurisdiction) in thc county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization/s as such court shall determine which are organized a~l operated exclusively for charik~olc, ¢~ucational, litera~y, religions or scien6fic purposes as shall qm~ify as an exempt org~wi~,~ion under Section 501(c)(3) of the Intemal Revenue Code of 1986 (or the corresponding provisions of any future United States Internal Revenue hw). ARTICLE X~ BY-LAWS power to a ter, an ena or rep By-taws of thc Corpor on is er by in fi~ members and directors of the Corporation. The By-Laws of the Coq~oration may ~y'~ provision for the regulation and management of the affairs of the Corporation which is not inc~si~'tent? with h~ laws of the State of Iowa or with these Articles of Incorporation. ~-. - ARTICLE XII NON-LIABILITY Except as otherwise provided in the Inwa Nonprofit Corporation Act, a director, offiwr~ employee or me~nber of the Corporation is not hable for the Corporation's debts nor obhgatinns a~l a director, officer, me~nber or other volunteer is not personally liable in ~ capacity, for a claim based upon an act or omission of the person performed in the discharge of the person's duties, except for a breach offl~ duty of loyalty to thc Corporation, for acts or omissions not in ~ood faith or which involve intentional misconduct or knowing violation of the law, or for a transaction fi.om which the person derives an improper personal benefit. 6 ARTICLE XIII INDEMNIFICATION OF MEMBERS, DIRECTORS, OFFICERS AND EMPLOYEES The Corporation shall indenmify any persons made a party to any action, suit or p~ by mason of the fact that he, she or his or her decedent is or was a member, director, officer or employee of the Corporation, again~ the reasonable expenses, including attorneys' fees actually and necessarily incurred by him or her in connection with the defmse of such action, suit or proceed~ or in connection with any appeal therein, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such member, officer, director or employee is liable for negligence or misconduct in the pert'om of his or her duties. The Corporation shall also reimburse to any such member, director, officer or employee the reasonable costs of settlement of, or judgment rendered in, any such action, suit or proceeding, if it shall be found by a majority of a committee composed of the directors not involved in the ma-er of controversy (whether or not a quorum), in their judgment reasonably exercised, that such member, director, officer or employee was not guilty of negligence or misconduct in the performance of his or her duties and such finding is not inconsistent with any final adjudication made in such action, suit or proceeding. No member, director, officer of employee shall be deemed guilty of negligence or misconduct in the performance of his or her duties when, acting in good faith, such member, director, officer or employee relied upon the books and records of the Corporation or statement or advice marie by or prepared by any officer or employee of the Corporation, or any accountant, attorney or other person, finn or corporation employed by the Corporation to render advice or services, unless such member, director, officer or employee had actual knowledge of the falsity or the incorrecmess thereof, nor sha/l a member or director be deemed guilty of negligence or misconduct by virtue of the fact that be or she failed or neglected to attend a meaing or meetings of the Board of Directors of the Corporation. This section shall be construed in a manner consistent with the proscriptions of these Articles against the Corporation's use or application of its funds for private benefit. ARTICLE XIV AMENDMENTS/DISSOLUTIONS These Articles shall be amended or the Corporation dissolved only by a 2J3 majority vote of the Directors of the Corporal/on at either a regular or special meeting of the Board of Directors subject to IN W1TNESS WHEREOF, the undersigned incorporators cio hereby execute iNCORPORATORS : lusfio~immer { / Date__ ~ Wickhnd 7 Prepared by Justine Zimmer Engleft Civic Thest~e, Inc Executive Director, 221 East Washington St., Iowa City, IA 52240 Resolution authorizing the Englert Civic Theatre Inc. application for CDBG Economic Development funds WHEREAS, In Apdl 2002, the Englert Civic Theatre requested $1.635 million from the Vision Iowa/Community Attraction and Toudsm (CAT) fund for Phase II of the historic restoration project. WHEREAS, The Vision Iowa Board requires City and County participation in all pro'.~'ts that they support. WHEREAS, The Vision Iowa Board recognize the significant dollars that the City of Iowa City has already contributed towards the purchase pdca of the building, they consider that to be pert of Phase I of the project. WHEREAS, Dollars spent on or dedicated towards Phase I cannot be used as a match for the CAT grant. WHEREAS, The Vision Iowa Board is requesting that the City of Iowa City contribute dollars towards Phase II of the project. WHEREAS, In order to be pessed on to negotiations for the CAT grant, ECT needs to have letters of commitment from both Johnson County and the City of Iowa City before August 14th, 2002. NOW, THEREFORE, BE IT RESOLVED BY THE ENGLERT CIVIC THEATEI'~ INC., BOARD OF DIRECTORS, THAT in response to this, the Englert~;~ivic ;::; Theatre respectfully submits an application to the City of Iowa City for ~ o¢~ $75,000 from the CDBG Economic Development program · ~.~ Passed and approved this 30th day of July, 2002 .... ~ - . ~-~ President, Englert Civic Theatre Inc. (~ It was moved by ~ :~[I and seconded by~L.~,~ the resolution be adoPted, ~nd upton roll call there were: AYES: NAYS: ABSENT: Partridge Full Hoover X Wicklund , X .,, Eskin Faden Futrell g Ross ~ X Hamel Jones ~ Kamer X Parsons ,~ Rosenberger X Schlue X ... Summerwill Directors ~h~l!, rm, crthelcss, authorize, approve and ratify such contract or transactton b~,~ ~ote ~ majority of'thc Dircc~rs present, provided, howc~r, that any such ~ or mm.sac~.sfiall ~ arms lemgth and not v~olativ~ of thc proscnp~ons of fhes~ Articles a~unst t/~ Corpo~s usc-or application of its funds for privat~ benefit. ~' SeaimS. ~-,~ionofDoommm. I~d%ma~a~,~Uact, c~v~aacm, andattm' Section 6. Don,,6ons By The Corporation. To carry ca~t th~ purpo~s sc~t forth abow th~ Corporation may, in ~he discretion o~ ~he Board or Di~:ct~ mak~ dona~iom or ~Rs from stu~lus q,~li~ as exempt fi~a~i federal ~ tax under Sections 170(cX2)and 501(¢X3) of' the Intm'nal l~-~nu~ Code o£ 1~54 (or the cor~ provisions o~ any fiiture Unit~ Smt~ Inl~n~tl R~venue law). Section 7. Dissolution Clnuse. Upon the dissolution o£ the Corporation, the Boa~ of Directors shnil, after paying or making provisions ~or th~ payment of' all of the liabilities of the Corporation, dispose of' all o£ thc asse~s or the Corpora~ exclusively fi~r the purposes of fl~ Corporation/n s~ch manner, or to such organi~tion or organi~tlons organized and opera~d ~xclusiveiy or?ni~ti~/s und~ Section 501(cX3) of the Int~nal Rc'v~ue Code of 1986 (or the corn~pond~g provisions of any fiiture United S~s Internal R~-venu¢ law), as the Board of Trtu~tee~__ shall determine. Any such assets not so cli~ of shaJl be disposed o£ by lt~ Court of Comm~ Pk~ts (or other cot~ ~ exclusively for such purposes or t~ such or?ni~tion/s as such court ~ dO, tm/ne which shah qualify as an ~ orga~i~ti~s undo' Secl:icm 501(c)(3) of the Intm't~ Revenue Cod~ of' 1986 (or I~ ~ provisions of any tittle Uni0~ Sta~s ~ P.~v,~_,e law). ARTICLE X[ BY-!.~WS th~ n~mbers and di~x:l~rs o~' fl~ Co~ Th~ By=Laws of tl~ ~ may coatain any Except as otho'wise provided in the Iowa Nenpro~t Corporation A~ -~ director, officer, empJoy~ or rnnnber orthe Coqx)ra~c~/s not liable ~r tt~ Corporation's cle~s nor obli~ons and a climcl~r, ofccp, member or other voltm~er is r~t perscr~ly liable in that capacity. ~or a claim based ~ of tl~ duty of'loyalty to fl~ Corpomti~, fi~r acts c~ omissions not in goo:l fitith or which involv~ City of Iowa City MEMORANDUM TO: Iowa City Council Members FROM: Tracy Hightshoe, Associate Planner"~'X~' DATE: July 31,2002 RE: CDBG Economic Development Activities At the request of Council member Kanner, I have provided information regarding CDBG Economic Development eligible activities and job creation criteria. Should you have any additional questions, please contact Steve Nasby at 356-5248. cc: Karin Franklin Steve Nasby 24 CFR Ch. V (5-1-01 Edition) Ofc. of Asst. Secy., Corem; Planning, Develop., HUD ~570.208 total number of persons assisted who be occupied by low and moderate ln- ~e activlty's clientele will primarily are low or moderate income, come households. ~ low and moderate income persnns. (ii) An activity that serves to remove (3) Housing activities. An eligible ac- (ii) When CDBG fonds are used to ~aterlal or architectural barriers to tivity carried out for the purpose of sist rehabilitation eligible under ~e mobility or accessibility of elderly providing or improving permanent resi- § 570.202(b)(9) or (10) in direct support of ~rsons or of adults meeting the Bu- dentlal structures which, upon comple- the recipisnt'e Rental Rehabilitation ~au of the Census' Current population tion, will be occupied by low- and mod- program authorized under 24 CFR part sports definition of "severely dis- crate-Income households. This would 511, such funds shall be considered to ~led" will be presumed to qualify include, but not necessarily be limited benefit low and moderate income per- nder this criterion if it is restricted, to, the acquisition or rehabilitation of sons where not less than 51 percent of , the extent practicable, to the re- property by the recipient, a sub- the units assisted, or to be assisted, by oval of such barriers by assisting: recipient, a developer, an individual the recipient's Rental Rehabilitation (Al The reconstruction of a public fa- homebuyer, or an individual home- program overall are for low and ]nod- iity or improvement, or portion owner; conversion of nonresidential erate income persons. ~ereof, that does not qualifY under strUctures; and new housing construc- (iii) When CDBG funds are used for tragraph(al(1) of thissection; tion. If the structure contains two housing services eligible under (B) The rehabilitation of a privately dwelling units, at least one must be so §570.201(k), such funds shall be consid- .pried nonresidential building or lm- occupied, and if the structure contains ered to benefit low- and moderate-in- ovement that does not qualify under more than two dwelling units, at least come persons if the housing units for ~ragraph (al(l) or (4) of this section; 51perce~t of the units must be so occu- which the services are provided are pied. Where two or more rental build- HOME-assisted and the requirements (C) The rehabilitation of the common jugs being assisted are or will be lo- at 24 CFR 92.252 or 92.254 are met. cas of a residential structure that Coted on the same or contiguous prop- (4) Y0b c~eotion or retention activities. ,ntains more than one dwelling unit erties, and the buildings will be under An activity designed to create or re- id that does not qualify under para- common ownership and management, tain permanent jobs where at least 51 · aph (al(3) of this section. ~he grouped buildings may be consid- percent of the Jobs, computed on a full (iii) A microenterprise assistance ac- ~red for this purpose as a single struc- time equivalent basis, involve the em- pity carried out in accordance with ~hre. Where housing activities being ployment of low-and moderate-income ~e provisions of §570.201(o) with re- qtssisted meet the requirements of para- persons. To qualify under this para- Ject to those owners of microenter- graph §570.208 (d)(5)(ii) or (d)(6)(li) of graph, the activity must meet the fol- ~'ises and persons developing micro- ~hts section, all such housing may also lowing criteria: ~terprises assisted under the activity be considered for this purpose as a sin- (il For an activity that creates jobs, ~ring each program year who are low- gle structure. For rental housing, occu- the recipient must document that at ~d moderate-income persons. For pur- pancy by low and moderate income least 51 percent of the jobs will be held ,ses of this paragraph, persons deter- households must be at affordable rents by. or will be available to, low- and ined to be low and moderate income ~%0 qualify under this criterion. The re- moderate-income persons. ay be presumed to continue to qual- ,5ipient shall adopt and make public its (ii) For an activity that retains jobs, y as such for up to a three-year pc- '~tandards for determining "affordable the recipient must document that the od. ~nts" for this purpose. The following jobs would actually be lost without the (iv) An activity designed to provide ~all also qualify under this criterion: CDBG assistance and that either or ,b training and placement and/or (il When less than 51 percent of the both of the following conditions apply her employment support services, in- a structure will be occupied by with respect to at least 51 percent of uding, but not limited to, peer sup- and moderate income households, the jobs at the time the CDBG assist- ~rt programs, counseling, child care, assistance may be provided in once is provided: ansportation, and other similar serv- limited circumstances: (Al The job is known to be held by a es, in which ~he percentage of low- The assistance is for an eligible low- or moderate-income person; or nd moderate-income persons assisted to reduce the development (B) The job can reasonably be ex- less than 51 percent may qualify the new construction of a mul- pected to turn over within the fol- nder this paragraph in the following non-elderly rental housing lowing two years and that steps will be mired circumstance: ect; taken to ensure that it will be filled (A) In such cases where such training Net less than 20 percent of the by, or made available to, a low- or r prevision of supportive services as- ~sts business(es), the only use of CDBG be occupied by low and mod- moderate-income person upon turn- ~sistance for the project is to provide households at affordable over. (iii) Jobs that are not held or filled he job training and]or supportive serw of the total cost by a low- or moderate-income per,on ~es; and project to be borne by may be considered to be available to (B) The proportion of the total cost f the project borne by CDBG funds is is no greater than the pro- low- and moderate-income persons for o greater than the proportion of the the project that will these purposes only if: 55 i94-076 §570.208 24 CFR Ch. V (5-I-01 Edition) (A) Special skills that can only be ac- has a poverty rate of at least 20 per- quired with substantial training or cent; or work experience or education beyond (3) Upon the written request of the high school are not a prerequisite to recipient, HUD determines that the fill such jobs, or the business agrees to census tract exhibits other objectively hire unqualified persons and provide determinable signs of general distress training; and such as high incidence of crime, nar- (B) The recipient and the assisted cotics use, homelessness, abandoned business take actions to ensure that housing, and deteriorated infrastruc- low- and moderate-income persons re- ture or substantial population decline. ogive first consideration for filling (vi) As a general rule, each assisted such Jobs. business shall be considered to be a (iv) For purposes of determining separate activity for purposes of deter- whether a job is held by or made avail- mining whether the activity qualifies able to a low- or moderate-income per- under this paragraph, except: son, the person may be presumed to be a Iow-or moderate-income person if: (A) In certain cases such as where (A) He/she resides wlthln a census CDBG funds are used to acquire, de- tract (or block numbering area) that velop or improve a real property (e.g., either:- a business incubator or an industrial (l) Meets the requirements of para- park) the requirement may be met by measuring jobs in the aggregate for all graph (a)(4)(v) of this section; or the businesses which locate on the (2) Has at least 70 percent of Its resi- property, provided' such businesses are dents who are low- and moderate-in- not otherwise assisted by CDBG funds. (B) The assisted business is located (B) Where CDBG funds are used to within a census tract (or block hum- pay for the staff and overhead costs of an entity making loans to businesses bering area) that meets the require- ments of paragraph (a)(4)(v) of this sec- exclusively from non-CDBG funds, this tion and the job under consideration is requirement may be met by aggre- to be located within that census tract, gating the jobs created by all of the businesses receiving loans during each (v) A census tract (or block num- bering area) qualifies for the presump- program year. tions permitted under paragraphs (C) Where CDBG funds are used by a (a)(4)(iv)(A)(1) and (B) of this section if recipient or subrecipient to provide it is either part of a Federally-des- technical assistance to businesses, this ignated Empowerment Zone or Enter- requirement may be met by aggre- prise Community or meets the icl- gating the jobs created or retained by lowing criteria: all of the businesses receiving tsch- (A) It has a poverty rate of at least 20 nical assistance during each program percent as determined by the most re- year. cently available decennial census infor- (D) Where CDBG funds are used for marion; activities meeting the criteria listed at (B) It does not include any portion of §570.209(b)(2)(v), this requirement may a central business district, as this term be met by aggregating the jobs created is used in the most recent Census of or retained by all businesses for which Retail Trade, unless the tract has a CDBG assistance is obligated for such poverty rate of at least 30 percent as activities during the program year, ex- determined by the most recently avail- cept as provided at paragraph (d)(?) of able decennial census information; and this section. (C) It evidences pervasive poverty (E) Where CDBG funds are used by a and general distress by meeting at Community Development Financial In- least one of the following standards: stitution to carry out activities for the (1) All block groups in the census purpose of creating or retaining jobs, tract have poverty rates of at least 20 this requirement may be met by aggre- percent; gating the jobs created or retained by (2) The specific activity being under- all businesses for which CDBG assist- taken is located in a block group that ance is obligated for such activities 56 ",24 CFR Ch. V (5--1-01 Edition) :~/~c,.°f Asst. Secy., Comm. Planning, Develop., HUD § 570.208 has a poverty rate of at least 20 per. cent; or tdi/ring the program year, except as pro- elimination of slums or blight in an ($) Upon the written request of the .~ded at !yaragraph (d)(?J of this sec- area if: recipient, HUD determines that the -tion, (i) ~lqle area, delineated by the reeipi- census tract exhibit~ other objectively ." (F) Where CDBG funds are used for ent, meets a definition of a slum, blighted, deteriorated or deteriorating ~'~(~blie facilities or improvements determinable signs of general distress i~5ich will result in the creation or re- area under State or local law; such as high incidence of crime, nar: cotics use, homelessness, abandoned tention of Jobs by more than one busi- (il) Throughout the area there is a nes~, this requirement may be met by substantial number of deteriorated or housing, and deteriorated lnfrastruc. ~aggregatlng the Jobs created or re- deteriorating buildings or the public ture or substantial population decline. ~klned by all such businesses as a re- improvements are in a general state of (vi) As a general rule, each assisted ~lt of the public facility or improve- deterioration; business shall be considered to be a thent. (iii) Documentation is maintained by separate activity for purposes of deter- (l) Where the public facility or ira~ the recipient on the boundaries of the mining whether the activity qualifies ~rovement is undertaken principally area and the condition which qualified under this paragraph, except: for the benefit of one or more par- the area at the time of Its designation; (A) In certain cases such as where ~cular businesses, but where other and CDBG fUnds are used to acquire, de- bUSinesses might also benefit from the (tv) The assisted activity addresses velop or improve a real property (e.g., i :assisted activity, the requirement may one or more of the conditions which a business incubator or an industrial ~ 'bs met by aggregating only the jobs contributed to the deterioration of the park) the requirement may be met by ~[~ated-or retained by those businesses area. Rehabilitation of residential measuring jobs in the aggregate for all for which the facility/improvement is buildings carried out in an area meet- the businesses which locate on the ~rincipally undertaken, provided that lng the above requirements will be con- Property, provided such businesses are the cost (in CDBG funds) for the facfi- sidered to address the area's deteriora~ ~ot otherwise assisted by CDBG funds, l,ty/improvement is less than $10,000 per tion only where each such building re- (B) Where CDBG funds are used to l)ermmsent full-time equivalent ~ob to habllitated is considered substandard pay for the staff and overhead costs of be created or retained by thdse busi- under local definition before rehabili- tation, and all deficiencies making a · n entity making loans to businesses nesses. ~xclusively from non-CDB~ funds, this (2) In any case where the cost per job building substandard have been elimi- nated if less critical work on the build- ~'equlremen~ may be met by aggre- to be created or retained (as deter- lng is undertaken. At a minimum, the ~atlng the jobs created by all of the mined under paragraph (a)i4)(vi)(F)(1) local definition for this purpose must l)uslneeses receiving loans during each of this section) is $10,~00 or more, the be such that buildings that it would ~rogram year. requirement must be met by aggre- render substandard would also fail to (C) Where CDBG funds are used by a gating the Jobs created or retained as a meet the housing quality standard~ for 'ecipient or subrecipient to provide result of the public facility or improve- the Section 8 Housing Assistance Pay- echntcal assistance to businesses, this merit by all businesses in the service men~s Program-Existing Housing (24 equirement may be met by aggre- area of the facility/improvement. This CFR882,109). sting the jobs created or retained by aggregation must include businesses (2) Activities to address slums or blight Il of the businesses receiving tech- which, as a result of the public facility/ on a spot basis. Acquisition, clearance, /cai assistance during each program improvement, locate or expand in the relocation, historic preservation and ear. service area of the facility/improve- building rehabilitation activities which (DJ Where CDBG funds are used for merit between the date the recipient eliminate specific conditions of blight :tivitles meeting the criteria listed at identifies the activity in it~ action or physical decay on a spot basis not ~0.299(b)(2)(v), this requirement may plan under part 91 of this title and the located in a slum or blighted area will ~ met by aggregating the jobs created date one year after the physical cum- meet this objective. Under this cfi- retained by all businesses for which pletion of the facility/improvement. In teflon, rehabilitation is limited to the DBG assistance~ is obligated for such addition, the assisted activity must extent necessary to eliminate specific 'tivities during the program year, ex comply with the public benefit stand- conditions detrimental to public health ,pt as provided at paragraph (dj(7) of ards at §5~0.209(b). and safety. :is section. (b) Activities which aid in the preven- (3) Activities to address slums or blight !E) Where CDBG funds are used by a tion or elimination of slums or blight. Ac- in an urban renewal area. An activity ~mmunity Development Financial In- tivitics meeting one or more of the icl- will be considered to address preven- itution to carry out activities for the lowing criteria, in the absence of sub- tion or elimination of slums or blight ~rpose of creating or retaining jobs, stantial evidence to the contrary, will in an urban renewal area if the activity is requirement may be met by aggre- be considered to aid in the prevention is: ,ting the jobs created or retained by or elimination of slums or blight: (t) Located within an urban renewal I businesses for which CDBG assist- (1) Activities to address slums or t~light project area or Nelghborhcod Develop- ce is obligated for such activities on an area basis. An activity will be merit Program (NDP) action area; i.e., censic~ered to address prevention or an area in which funded activities were 57 ELIGIBLE INTERIM ASSISTANCE ACTIVITIES Q Under second situation, grantee's CEO must determine that: · Situation Is an emergency · Situation requires immediate action · Activities are limited to the extent necessary to alleviate emergency conditions INTERIM ASSISTANCE NATIONAL OBJECTIVES ~ Low/Mod Area Benefit r~ Slum/Blight Area Basis Q Urgent Need · Activity must alleviate existing threatening conditions · Activity must address a recent conditio~q · Recipient must be unable to finance activity CHAPTER 6: ECONOMIC DEVELOPMENT O This chapter corem: Eligible econo mic development activities How to apply public benefit standards Documenting national objectives ELIGIBLE ECONOMIC DEVELOPMENT ACTIVITIES o Special ED activities §570.203 Q Mlcroenterprise activities §570.20t(o) Q Commercial rehab §570.202 ~/~ ~ CBDO §570.204 SPECIAL ED ACTIVITIES §57O.2O3 Q Acquire, construct, rehab, reconstruct or install commercial/industrial buildings or equipment (by recipient or subrecipient only) o Assistance to for-profits (loans, grants, etc.) ~ Economic development services in connection with CDBG E.D. activities MICROENTERPRISE Microenterprlse -- 5 or fewer employees including the owner Assistance to persons owning or developing mlcroenterprises eligible MICROENTERPRISE ASSISTANCE §570.201(o) o May provide assistance as loans, grants and other forms of financial support o Other support activities eligible: * TA, advice, ai~d business services to owners and persons developing mlcroenterpdses · Genelal support to owner and persons developing mic roenterprises · Training and TA to build recipient and subreclpient capacity COMMERCIAL REHAB §570.202 ~ Rehab of publicly or privately owned commercial or industrial structures r~ If owned by private, for-profit: · Rehabilitation limited to exterior of building and correction of code violations · Other improvements must be carried out under the special economic development category §570.203 CBDO §570.204 ~ CBDOs may carry out 3 kinds of projects: · Community economic development · Neighborhood revitalization * Energy conservation ~ If job training done through a CBDO, doesn't count against public services cap PROJECT EXAMPLES r~ Mlcrobuslness loan pool o Incubators [~ TA and job training [~ Large scale commercial activities Q Community-based lending · Revolving loan funds EVALUATING PROJECTS r~ Evaluation & selection of E.D. projects has two parts: O Voluntary under*riting guidelines ~) Mandato~/public benefit standards UNDERWRITING GUIDELINES o Project costs reasonable o All sources of financing are committed o CDBG not substituted for non-federal ~ Project is financially feasible ~ Return on investment reasonable ~ CDBG funds distributed pro-rata PUBLIC BENEFIT STANDARDS o Mandatory for: · Special economic development projects (§$70.203) · Some CBDO projects (§570~204) and · Public improvement projects classified under Lov, flVlod Job Creation/Retention where more than $10,000fjob in CDBG funding (3 Microenterprlse activities (§570.201(o}) not covered CALCULATING PUBLIC BENEFIT (3 Two options for determining benefit: · Jobs created or rel~ined · Goods or services provided to LMI persons ~ Projects must meet individual test [3 Entire program must meet aggregate test INDIVIDUAL STANDARDS o May not exceed $50,000 per FTE permanent job created or retained ..~/ OR ~ May not exceed $1,000 in expenditure per LMI person to which goods or services are provided ._~ o~ Page 1 of 1 Marian Karr From: Amyicadv@aol.com Sent: Wednesday, July 31, 2002 4:06 PM To: cou ncil@iowa-city.org Subject: Re: CDBG Economic Development Fund To: All iowa City Council Members Re: Englert application for CDBG Economic Development Funds From: Amy Correia 11 South 7th Avenue Iowa City, Iowa 52245 I do not support the use of CDBG Economic Development Funds for the Englert Theatre. I realize that it is an allowable use of these funds. However, I am not convinced that using the funds in this fashion will meaninfully enhance the well- being or create additional opportunities for Iow-to-moderate income households in Iowa City to increase their economic security. I do support the Englert Theatre. I think it is important that the community supports and nurtures our cultural identity. If the council determines it is important to financially support the Englert Theatre funds should be used. Thank you for this opportunity to express my opinion. 8/1/02 ,~ ~ Pagelofl Marian Kart From: Kevinmboyd@aol.com Sent: Wednesday, July 31, 2002 3:56 PM To: cou ncil@iowa-city.org Subject: The Englert City Council members, I would encourage you to support the Englert Theater with some kind of financial contribution. The Vision Iowa Board needs to have both city and county governments behind projects in someway financially. We are one of the most financially comfortable cities in the state, albeit in a state in a budget crunch. The Vision Iowa Board sees counties and cities that have budgets in dire circumstances find ways to support projects. They will not support a project that does not have the backing of the locally elected boards and councils. I support all the projects in Johnson County up for Vision Iowa funds. All of them provide a greater quality of life for the residents of the entire community. I understand that this issue will be on your agenda tomorrow. Please find a way to make the Englert, and all of the Vision Iowa projects, a success. Thanks, Kevin Boyd 400-2051 8/1/02