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HomeMy WebLinkAbout05-16-2007 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Wednesday, May 16, 2007 8:30 a.m. City Hall Lobby Conference Room 410 E. Washington St. 1. Call to Order 2. Approval of Minutes from April 6 and April 12, 2007. 3. CDBG Economic Development Fund Applications a. Extend the Dream Lease b. Extend the Dream Property Acquisition 4. Downtown Market Niche Analysis Status Report - Ford 5. Staff time 6. Committee time 7. Adjournment MINUTES Preliminary CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE April 6, 2007 LOBBY CONFERENCE ROOM Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: None Staff Present: Wendy Ford, Karin Franklin Others Present: Mark Nolte (ICAD Group), Gigi Wood (Corridor Business Journal), Tom Brandt (PSO), Nancy Quellhorst (Iowa City Area Chamber) CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 9:30 a.m. Prep Sports Online Application for CEBA and HQJC funds through IDED Ford indicated that she was approached by Joe Raso of ICAD regarding the possible headquarters relocation by Prep Sports Online (PSO) to Iowa City. Tom Brandt, a representative of PSO, introduced the company founded by Nile Anderson to help fund high school athletic programs. Part of the company is a not -for -profit organization which provides money to participating schools via website marketplaces created at no cost to the schools by PSO. The company generates its revenue through advertising, content licensing, and multimedia sales. Participating schools benefit from a revenue sharing program. Elliott asked what percent of the revenues goes to the schools. Brandt was unable to give an exact percent as each school varies some although he estimated that about 11 % of the revenues would go back to schools. Bailey asked how the amount the schools receive is determined. Brandt responded that it is through the individual agreements, but each school is guaranteed $2,500. He added that next year the non-profit side of the company will have need -based funds that can be applied for. Bailey asked about the corporate structure of the company. Brandt responded that they are a LLC; previously the not -for -profit was PSO, now it will be Prep Sports Foundation retaining the same structure just with a new name. Bailey asked for clarification from Brandt on a third revenue source — multimedia sales. Each school would have their own online store where people can purchase uploaded images; schools receive 15% of the revenue from those sales. Bailey asked how proprietorship over the images of athletes is handled. Brandt responded that they own the rights to the images as designated in the contract; this is similar to how newspapers own the rights to images taken and printed. Franklin asked about the plan for collateralizing the requested $100,000. Brandt responded that they will obtain an irrevocable letter of credit. Bailey indicated that the projection for job creation and salaries is rather ambitious which was echoed by Champion. Because a loan would be contingent on those projections, they wanted to know if the projections were feasible. Brandt indicated that they spent a lot of time setting up their model and that they are often told that their program sounds too good to be true. The model is based on what PSO believes to be necessary to set up the minimum of 500 websites they are committed to. The headcount and salaries in the application would be based in Iowa City. Bailey asked who PSO's major competitors are. Brandt indicated that PSO does not have any major competitors in part due to the strength of their Foundation and the value that schools find in that. Competitors are relatively unattractive to schools as they cannot claim to give back money to schools like PSO does. In addition, Mr. Anderson is dedicated to covering not only the star players, but also the whole team and other individual athletes. The committee determined it did not have enough information to make a recommendation either way to the Council and would meet again to further discuss the PSO application after application materials had been distributed and after staff had had a chance to review the business plan and financials. Buv Here! Camoaian Quellhorst indicated that after being approached by members of different sectors of the local economy, a taskforce was assembled to look at a way of promoting local purchasing. The campaign resulting from the taskforce's recommendation is a business -to -business purchasing initiative and is voluntary. Businesses are requested to shift 5% of what they spend outside the county back into Johnson County. There will be accountability through self -reporting, but the program does not include policing. Local is being defined as businesses that pay property taxes in Johnson County. A study was conducted by Dave Swenson, economist with Iowa State University, looking at total goods and services produced within the county and how that would be impacted by this campaign. The gains for the County would be $92 million in goods, $27 million in labor, and 859 new jobs from business impacts alone. The study included impacts of household and public sector spending for a gain of $125.6 million and 1,015 direct jobs as a result of this shift of 5%. This campaign is modeled on a similar one in Des Moines which has been very successful. Quellhorst anticipates that once it becomes clear what is not locally produced some entrepreneurial opportunities would arise Bailey asked what the Chamber of Commerce is asking for from the city. Quellhorst responded that they are asking for $1,500 to be able to say that there is public sponsorship of this campaign in addition to the interest from businesses. The current Chamber website will host a database to coordinate the need with the local supply. Elliott expressed satisfaction in the Chamber's attempt to get a lot of people involved with smaller amounts of money rather than a few people with a lot of money. Ford indicated that she has set up a meeting with Chairperson Bailey and the legal department to discuss implications and the legality of supporting this program. Bailey asked how this would affect the relationship within the Corridor since it would just be Johnson County. Quellhorst responded that she believes there is potential to expand it to the region, but Johnson County is a start. She indicated that the Chamber of Commerce in the northern part of the Corridor is aware of this initiative. Bailey is concerned that by focusing on Johnson County initially is a step backward since so much has been done with the Corridor so far. Champion expressed that she does not think that this would be a step backward. Elliott expressed that while he agrees that this would be good for the community, he is aware of the concern about stepping back from the Corridor concept. He wants to ensure that the Iowa City Chamber of Commerce makes it clear that this is the first step in the direction of a regional buy local program. Quellhorst offered to obtain data and other information from Des Moines as to how they were able to work their program to help allay concerns that Committee members have regarding the legalities. Adjournment Bailey moved the meeting be adjourned, Champion seconded. Motion carried. M M N O X X X N N M N X X v� 00 00 00 O !R O O O O c 0 � y U0 C y �4XC0 MINUTES Preliminary CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE April 12, 2007 LOBBY CONFERENCE ROOM Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: None Staff Present: Wendy Ford Others Present: Joe Raso RECOMMENDATIONS TO CITY COUNCIL: Champion moved, Elliott seconded that the committee recommends to the council the support of an application on behalf of Prep Sports Online for funding from the Iowa Department of Economic Development's Community Economic Betterment Account funds and a local match. Motion carried. CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 10:04 AM. Prep Sports Online ADDlication for CEBA and HQJC funds through IDED Raso gave an overview of the application. Prep Sports Online contacted Raso 6 — 8 weeks ago considering locating headquarters in Iowa City. Real estate in Iowa City is considered better than other regions company is considering and there is a strong desire to be located near the University of Iowa. The nature of the project is noted in the application. Elliott asked how long the tax credits from the state would be for. Raso explained the credits are determined by hard assets, not working capital; and are formula -based and would yield 1-7% of qualifying investment on a one time basis which must be applied to the firm's State corporate tax liability. The High Quality Job Creation Credit is not yet determined. Kirkwood may sell bonds to fund the creation of a job training program for Prep Sports Online provided that jobs are created; this program has been in place for 23 years or so. If the company were to leave before bonds are paid off, a skilled workforce would remain. 79 jobs are expected to be created with the locating of Prep Sports Online within three years. Bailey asked for clarification on whether the agreement is for 79 jobs after three years or some increasing scale up to 79 in year three. Raso indicated that the State requires that the jobs be created within three years, they do not monitor year to year for employment number targets. At the end of those three years, if those jobs are not created, the State may consider circumstances and may extend contract by 12 months or prorated paybacks. Bailey asked why this company is looking to locate in Iowa City given that the capitalization here is relatively small. Raso pointed out that Lear Corporation and Procter and Gamble have good access to capitalization and yet located in Iowa City. Bailey expressed the sense that Economic Development groups get criticized for awarding incentives to businesses that do not need them. Champion responded that such requests are a matter of competition. Bailey asked why this firm would want to locate in Iowa City with its higher cost of living and lower unemployment. Raso commented that he asked the firm's representative this as well, why Iowa City and not Chicago or Los Angeles or some other media center. The rep responded that there is an image that Iowa and further Iowa City conveys on the business that is desired. Elliott pointed out that the current location has a relatively lower educated workforce while this company is relatively high tech. Raso added that high tech firms provides a draw for other businesses and people including spouses of employees, etc. He further pointed out that if this venture were to fail, the public entities would be protected. Bailey commented that they [the public entities] are smart and thus would protect their interests. She indicated that Senator Grassley is very interested in the accountability of non -profits. There is concern though with Prep Sports Online's business structure; will the profits be "skirted" away to a non-profit? Elliott indicated that other than the potential risk, he is concerned over the money that schools would get. Bailey indicated that she wants to keep due diligence as the responsibility of the Committee and hence the rigorous questioning of this project since the City would be associating with this company. Elliott expressed concern that schools would only receive a small percentage while the firm would be bringing in large amounts of money. Bailey responded that this is not bad so long as the funding is transparent and appropriately structured. She wants to ensure reporting and public accountability; information which schools would then have access to. Elliott mentioned that he maintains his concerns, but is satisfied that they have been answered; the risk is virtually nothing while high quality jobs and a better trained workforce is created. Elliott indicated that he would like to see a letter of guarantee from a financial institution to support this application. Bailey said she wants to make sure that the Committee anticipates the questions that would be raised in public meetings. Champion moved to support the application to the State for CEBA funds with a local match of $100,000 no interest loan, secured with an irrevocable letter of credit from an FDIC insured financial institution. Raso asked if there is anything else that he could ask for from the company to make the Committee more comfortable. Champion indicated that she is comfortable. Elliott seconded. Bailey asked if there was any further discussion; there was none. Motioned carried. Adjournment Bailey moved the meeting be adjourned, Elliot seconded. Motion carried CD .E E O U c a) E CL O d d 0 ci O O 0 W O U N N X X M M N O N o X X X N M v� 00 00 00 O O O 0 0 8 � g U •y a� W .0 z x oa U INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION — LEASE Business Proposed: Extend the Dream Foundation (EDF) requests funds to partially fund the lease at 401 S. Gilbert Street (Uptown Bill's Small Mall). Uptown Bill's Small Mall houses four micro -enterprises operated by persons with disabilities: Uptown Bill's Ice Cream and Coffee Bar, Bills Bookmark, The Mad Hatter Room and Mr. Ed's Super Graphics. CDBG funds have assisted this location since 2001. $106,750 was provided for the first three-year lease and $60,000 was provided for the subsequent three- year lease. The applicant anticipates a $10,000 deficit for the 2007-08 lease. Budget & Private Financial Contribution Applicant is requesting funds to meet the one year lease cost of $40,200: $20,200 EDF micro -enterprise earnings $10,000 Johnson County $10,000 City of Iowa City CDBG funds Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CB-5 zone (central business support). CITY STEPS notes a high priority for employment training and education skills and micro -enterprise assistance. The focus at EDF is on improving the lives of persons with disabilities through employment training and ownership opportunities. Quality of Jobs The project is an eligible activity under economic development as it provides financial support for the establishment, stabilization and/or expansion of micro - enterprises. (A micro -enterprise is a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise.) There are no employees as each person is considered an owner or a 1099 subcontractor. Economic Impact The proposed CDBG funds will assist a non-profit agency stabilize and retain a property that will incubate micro -enterprises for persons with disabilities. Environmental/Community Involvement EDF provides opportunities for businesses and works to enhance the incomes of persons with disabilities. In addition to operating six potential micro -enterprises at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates an e- commerce center that trains persons with disabilities to buy and sell products on the internet to expand into home based businesses. May 2007 Extend the Dream has been working with several community partners through referrals for micro -enterprise or e-commerce training and hosting meeting spaces for organizations such as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services and STAR homeless outreach. Items to Address: 1. EDF is run entirely through volunteers. The organization has not had consistent financial management during its years in operation. EDF must have a financial system that provides control and accountability over funds and assets, identifies the source and application of federal funds, provides source documentation, has basic accounting records, and ensures an adequate separation of financial duties. EDF has worked to resolve some of these issues; however the organization must incorporate a financial management system operated on a long term basis that will meet federal minimal standards. 2. The balance sheet does not contain any fixed assets under the Assets category. CDBG funds were used to acquire 912 2"d Ave. (2203 F. Street). The purchase price was $245,000 ($122,000 CDBG conditional occupancy loan, $75,000 HOME no interest loan, $48,000 private lender/owner equity). All fixed assets should be included in the balance sheet as well as their corresponding liability. Profit and loss statement for Uptown Bill's shows an annual net income of $33,231.40 in 2006. 3. Since this is an organization completely run by volunteers, please discuss a plan for succession if the director leaves the organization for any reason. 4. EDF provides the accounting and fiscal management for the businesses incubated at Uptown Bill's Small Mall. Individual profit/loss statements and cash flow statements were not provided. There is a profit/loss statement for Uptown Bill's for the 2006 calendar year. 5. The applicant is a non-profit organization so technical assistance at the Small Business Development Center may be difficult to obtain. The organization may have to rely on donated financial management or through consultant fees. May 2007 Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual : Thomas Walz on behalf of the Extend the Dream Foundation Home Address: 915 E. Davenport St., Iowa City, Iowa 52245 Name of Applicant Business: Extend the Dream Foundation Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240 Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu DUNS Number (If awarded funds, applicant must obtain a DUNS number): 421465808 Type of Business Non -Profit: Incubator of Micro -Enterprises Owned and Operated by Persons with Disabilities. Date Business: Established 1974 (original coffee shop founded), current program (2001) Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank and Trust (e.g. Sackter House, Documentary, Escrow) and Hills Bank (Uptown Bill's Ice Cream and Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Hatter Room, Vintage Shop/Mick's Workshop, The Framery, Ramp, Inc, and the Workshop Account. NOTE: The City will not provide assistance 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 material respect. If assistance has already been provided by the City prior to discovery of the incorrect, false or misleading representation, the City may initiate legal action to recover City funds. Revised 11/15/06 1 r Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: The project involves the retention of jobs for persons with disabilities associated with four micro -enterprises co -located in the small Mall at 401 Gilbert St. The "jobs" include four handicapped persons as (4) owners of small businesses and ( 11 ) persons who work with these owners (along with some able volunteers) in operating their shops and programs. The four micro -enterprises include: Uptown Bill's Ice Cream and Coffee Bar, Bills Bookmark, the Mad Hatter Room and Mr. Ed's Super Graphics. The request is for some partial continuation of the CDBG subsidy for rent and utilities at their 401 location to help these owners meet the rising costs of rent and utilities. In addition to protecting their own jobs, this downtown location is crucial to accessibility of both employment and social support by a large number of disabled and elderly persons who live in the downtown area and the Ralston Creek area where the small Mall is located. For the first three years (2001-2004) the Extend the Dream Foundation received full subsidy for the rent and utilities at 401 S. Gilbert; from 2004-2007 EDF received 50% of the rental costs, while bearing the other 50% rent and all of the utilities . EDF has attempted to pay as much of the operating costs as it can from the micro enterprise earning profits. In our projected 2007-2010 budget, we believe we will experience a shortfall of $10.000 per year in meeting our rental costs. It is this amount that we are requesting from the Economic Development funds to meet the deficit. In anticipation of the end of the previous CDBG subsidy, we sought grant support from Johnson County and community support from two student groups River Run and the (- Envision entrepreneurial group. The County has committed $10,000 for 2006-7 and the student groups believe they will raise enough to cover the rising utility costs ($10,000/yr). These sources, along with the additional 10,000 requested from the Economic Development fund, would assure our ability to remain in our present location. 1.2. Provide a brief history of your company: The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee Shop on the U of I campus in 1974. Its current community based history began in 2001 with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of micro -enterprises owned and operated by persons with disabilities. In its early years Bill's Coffee Shop was operated by the International Bill Foundation until its 1999 merger with the Extend the Dream Foundation. 1.3. Describe the organizational structure of the business: EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of directors most of whom are notable local business, academic and community leaders.. EDF is administered by a retired experienced administrator volunteer and network of approximately fifty community volunteers. Revised 11/16/06 The financial management is handled by Executive Director with paid assistance through a service contract With Marlene Perrin at Taxes Plus. The Board meets quarterly and the Executive Committee meets monthly. Other standing committees include: Community - University Relations, Futures and Planning and an Endowment Committee meet as needed. See Organization Chart. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) — non-profit Name & Position/Title Complete Address % Owned Thomas Walz, Executive Director* 915 E. Davenport St, Iowa City Allan Young, Chairperson 3248 Hastings Ave, Iowa City Dale Hankins, Vice Chair Solon, Iowa Mercedes Bern-Klug, Secretary 1803 C St, Iowa City Charles Skaugstad, Jr, Chair, Communty Relations Committee 602 S. Summit St, Iowa City Dr. Phillip Jones, co-chair, Endowment Committee 3201 Muscatine, Iowa City David Maeglin, Treasurer, Chair of Finance Committee 20 N. Lowell St., Iowa City Jeff Larsen 2201 Dubuque Rd., Iowa City Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City Carol Fisher 1208 Guilford Crt, Iowa City Marilyn Austen Williamsburg, Iowa Barry Morrow Santa Barbara, Calif. Josh Gersten 79 Primrose Crt, Iowa City Rev. Eugene Mathews 3113 Court St., Iowa City Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. EDF Management Resumes: Revised 11/16/06 Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center, Mpls. 1959-61, Director Living Learning Center, U of Minn, 1964-68, Director of Community Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71), Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973- 78), Director of the U of I Gerontology Center (1977-81), Director of the Des Moines Graduate Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001. Dale Hankens, former Director of Training for Accenture (formerly Arthur Anderson) International Division, 20 years. David Maeglin, President of Muscatine Storage (1994-2004), currently an international investor. Jeff Larsen, former owner of several Iowa City businesses, investor. Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years. 1.5. 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? No 1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. w. Revised 11/15/06 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to the nearest Activity i hundreds) Land acquisition New Construction/Expansion Repair Acquisition and/or Repair of Machinery 1 $ and Equipment Inventory Purchase $ Working Capital (including accounts ! $ payable) Acquisition of Existing Business $ All Other— subsidy for rent 2007-8 $ $10,000 i Total Loan Requested (All Sources): $ 10,000 2.2. Terms of Proposed Financing (Sources) Proposed* Amount Monthly Pay Type(1) Rate Term Financing Financial Financial Institution Other: Iowa City $10,000 CDBG Economic Dev. Fund Total 1 $10,000 Other income sources to meet rent and utility obligations for 7/1/07-6/31/08 will come from EDF micro -enterprise earnings ($20,000), Johnson County ($10,000), River Run ($7,000) and I -Envision ($3,000). Monthly rent is $3350/mo and utilities average about $650/mo. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Revised 11/15/06 Successful efforts have been made to explore other areas of subsidy, but a shortfall of approximately $10,000 for 2007-2008 remains. Given the CDBG support to date and our ability to take over a large part of the past subsidy through earnings over the past three years, we felt the City might be willing to continue its support again at a reduced level. EDF would continue to explore the avenue of county and community funding to take over this operating cost in the future. Revised 11/16/06 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. EDF from micro -enterprise earnings will contribute a minimum of $20,000 and an additional $10,000 from its community (student) donors. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: Extend the Dream Foundation — $20,000 Johnson County government - $10,000 River Run (beneficiary of race) - $7,000 I -Envision student organization (golf tournament) - $3,000 2.6. What type of security will the assisted business provide the City? 1f no security or less than the dollar amount requested is offered, an explanation must be provided. Corporate Guaranty UCC Financing Statement LJ Irrevocable Letter of Credit Personal Guarantee Surety Bonds Mortgage on Real Estate Escrow Account C! Other: this has to do with a building lease payment ($3,350/month) Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. We would have about $10,000 of inventory among the small Mall micro -enterprises, but nothing of value greater than $5,000. 2.7 If the City did not provide financial assistance, could the project proceed? It would be difficult, we would need to borrow from our modest endowment funding that has been set aside to eventually hire a full time director to replace our current "volunteer" director. Walz, while in good health, is 74 years old. Section 3: Jobs to Be Created/Retained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51 % of the jobs created or retained must be held by or made available to low - moderate income persons. The business acknowledges that if it fails to create andlor retain the jobs identified below by the end of the project period and maintain them for a period of time (usually 12 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. Revised 11/16/06 3.1 If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. Listed are only those low-income persons with disabilities: Uptown Bill's Ice Cream and Coffee Bar— (1) owner, (2 assistants), (4) volunteers. Bill's Bookmark (2 co -owners), (3) assistants. Mad Hatter Room (1) owner, (1) coordinator of music outreach Mr. Ed's Computer Graphics (1) owner 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 Months of Project Award (please see attached Job Category Definitions) # of Jobs Created # of Jobs Retained Type of Job No. Hours Per Week Hourly Rate of Pa y Fringe Benefits* 5 Owner/managers 100 Profit share Professional Technicians Sales Office & Clerical 50 Stipend Craft Wokers (Skilled) Operatives (semi -skilled) 1 Laborers (unskilled) 20 houtslwk $50/wk Service Workers *If fringe benefits are provided, please attach a description} of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? N/A 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: No Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? Revised 11/15/06 We are the only business in the downtown area that can cope with persons with mild to severe disability and in which adult members of this constituency can feel comfortable and accepted. In addition,we are the only alcohol and smoke free environment that provides an adult family atmosphere in the southeast section of downtown. The competitors for the student residents in the area are the bars, liquor stores and upscale coffee shops. The majorit of our existing student costumers are book buyers, musicians and volunteers. 4.2. Please describe the energy and resource efficiency, waste reduction, waste exchange, and recycling programs at your Iowa City operation. We recycle all hazardous materials through the county facility at the landfill. One of our volunteers is a waste management specialist (engineer) and is planning to do a study of our facility at the end of April. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. EDF and its micro -enterprises recruit, train and utilize a large number of volunteers annually (more than 100 different persons) per year, most of whom are assigned to one another small business in the small Mail. The small Mall annually sponsors the Ralston Creek Labor Day Fair and Flea Market which is entering Its sixth year with annual attendance of over (1000) persons. The businesses of the small Mall provide an important supportive resource to low-income elderly and disabled persons in the community 365 days a year. The Mad Hatter Room provides downtown space for 8-11 AA meetings per week, in addition to offering many supportive services to persons in recovery, including temp employment. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). R•7 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. No 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. Revised 11/16/06 ire Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [ x l Business plan (if start-up business) [ x l Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro - forma balance sheet) [ xj Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [ xj 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [ l Description of fringe benefits provided to employees, if applicable N/A [ x ] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Micro -enterprise owners in the small Mall: Tim C, 36, owner of Uptown Bills Ice Cream and Coffee Bar, some college, worked in restaurants as a cook or cooks helper prior to illness, on disability, has both MI and substance abuse background. Dave M, 57, college grad, local poet, has variable work history, mainly white collar, is a published poet and writer, has MI background. Allisa W, 18, high school grad (07), being reunited with mother in recovery, has some MI problems as well. Del A, 52, some college, veteran, PTSD and severe diabetes, has varied background, Has a disability pension. Ed G, 57, AA degree accounting, has cerebal palsy and is deaf, disability pension Revised 11/16/06 10 [ X ] Please provide the social security numbers for all the persons listed under Management (Question #1.4) Dave M - , Del A — Tim C , Ed G If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. N/A Construction loans only: Cost estimates for construction and a statement of the source of any additional funds Include a list of any machinery or equipment or other non -real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. None Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. 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 assjstanpe from a state agency or political subdivision. If partner, sign below. If applicant is a Corporation,'g-ign below: d6i*ate Name and Seal Date Attested by: natu of President Date: ` /S,, `° P 7 Signature of Corporate Secretary Revised 11/15/06 11 INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION — PROPERTY ACQUISITION Business Proposed: Extend the Dream Foundation (EDF) requests funding to purchase a property they currently lease at 2218-20 F Street to house two micro -enterprises. Currently the property houses Mick's Workshop, an antique furniture refinishing and wood working shop that is run by a person with disabilities. Applicant also proposes to initiate a new business called RAMP UP that provides design and construction of minor renovations in homes and apartments for low-income disabled persons and for the elderly. Applicant currently pays $1,200/month to lease the proposed property. With a forgivable loan and a partial private loan, applicant estimates their mortgage could be reduced to $350/month. Budget & Private Financial Contribution $99,000 Iowa City CDBG forgivable loan (no repayment unless sold or in default) $50,000 Private lender loan (30 year loan — 7.5% interest rate) $6,000 Applicant contribution to upgrade the property Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CC-2 zone (community commercial). Applicant proposes to upgrade an existing property that needs rehabilitation. CITY STEPS notes a high priority for employment training and education skills and micro -enterprise assistance. The focus at EDF is on improving the lives of persons with disabilities through employment training and ownership opportunities. Quality of Jobs The project is an eligible activity under economic development as it provides financial support for the establishment, stabilization and expansion of one existing micro -enterprise and will create one additional micro -enterprise. (A micro -enterprise is a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise.) Mick's Workshop has one owner and RAMP UP will have a volunteer coordinator with independent contractors. None of the persons identified in the application are employees, each is considered 1099 subcontractors. Economic Impact The proposed CDBG funds will assist a non-profit agency stabilize and expand a property that will incubate micro -enterprises. All the businesses are operated by persons with disabilities. Environmental/Community Involvement EDF provides opportunities for businesses and also works to enhance the incomes of persons with disabilities. In addition to operating six potential micro - enterprises at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates an e-commerce center that trains persons with disabilities to buy and sell products on the internet to expand into home based businesses. Extend the Dream has been working with several community partners through referrals for micro -enterprise or e-commerce training and hosting meeting spaces for organizations such as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services and STAR homeless outreach. Items to Address: EDF is run entirely through volunteers. The organization has not had consistent financial management during its years in operation. EDF must have a financial system that provides control and accountability over funds and assets, identifies the source and application of federal funds, provides source documentation, has basic accounting records, and ensures an adequate separation of financial duties. EDF has worked to resolve some of these issues; however the organization must incorporate a financial management system operated on a long term basis that will meet federal minimal standards. 2. Zoning Issues: The home on the property is a non -conforming, single family property in a commercial zone. The home has a rental permit with an active tenant; last housing inspection was 4/11/2007. The application did not reference the property as a rental unit. The property can be changed to a commercial use; however it may involve substantial upgrades to bring it up to commercial standards. The work required to bring the property to code would be subject to Davis Bacon (prevailing) wages. If conversion of the property to a commercial use occurs and the tenant is displaced, then Uniform Relocation Assistance requirements would apply. If the applicant maintains the rental unit and operates the businesses in the workshop, then lead based paint regulations apply (the home was built in 1930). 3. EDF provides the financial management and accounting for Mick's Workshop. Uptown Bill's profit and loss statement, calendar year 2006, shows an annual net income of $33,231.40 in 2006. Does this contain the lease expense of $1,200 or tenant rent received? 4. Since this is an organization completely run by volunteers, please discuss a plan for succession if the director leaves the organization for any reason. 5. The applicant is a non-profit organization so technical assistance at the Small Business Development Center may be difficult to obtain. The organization may have to rely on donated financial management or through consultant fees. 6. CDBG funds were used to purchase the building at 912 2"d Ave. (2203 F. Street) in 2005. A few items remain from the building permit issued in October of 2005 in regards to electric and riser height issues and must be reinspected. May 2007 Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual : Thomas Walz on behalf of the Extend the Dream Foundation Home Address: 915 E. Davenport St., Iowa City, Iowa 52245 Name of Applicant Business: Extend the Dream Foundation Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240 Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu DUNS Number (if awarded funds, applicant must obtain a DUNS number): 421465808 Type of Business Non -Profit: Incubator of Micro -Enterprises Owned and Operated by Persons with Disabilities. Date Business: Established 1974 (original coffee shop founded), current program (2001) Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank and Trust (e.g. Sackter House, Documentary, Escrow) and Hills Bank (Uptown Bills Ice Cream and Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Hatter Room, Vintage Shop/Micks Workshop, The Framery, Ramp, Inc, and the Workshop Account. NOTE: The City will not provide assistance 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 material respect. If assistance has already been provided by the City prior 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. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: The project involves the purchase of a property (two buildings) at 2218-2220 F. St to house two micro -enterprises: Mick's Workshop and RAMP UP. The first of these specializes in furniture refinishing and antique restoration for the general public and the second specializes in the design and construction of minor renovations in homes and apartments for the low income disabled and elderly to help them improve the physical accessibility of their domiciles. In addition will provide some "chores" services may be offered to low income elderly persons and persons with disabilities.. The proposed purchase is attractively priced, the landlord has upgraded the building with new siding, a new heating plant and cooling plant. The building is located across the street from one of our other buildings (the Ecommerce Center at 2203 F St) and has a functional tie to the buildings to be purchased ( refinishing antiques for our vintage shop, frame making for the Framery and the shared use of equipment, office and storage space for the new RAMP UP micro enterprise). Another benefit is the enhanced value that can be expected from building through sweat equity upgrades (similar to what we did with the F street building across the street). 1.2. Provide a brief history of your company: The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee Shop on the U of I campus in 1974. Its current community based history began in 2001 with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of micro -enterprises owned and operated by persons with disabilities. In its early years Bill's Coffee Shop was operated by the International Bill Foundation until its 1999 merger with the Extend the Dream Foundation. 1.3. Describe the organizational structure of the business: EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of directors most of whom are notable local business, academic and community leaders.. EDF is administered by a retired experienced administrator volunteer and network of approximately fifty community volunteers. The financial management is handled by Executive Director with paid assistance through a service contract With Marlene Perrin at Taxes Plus. The Board meets quarterly and the Executive Committee meets monthly. Other standing committees include: Community - University Relations, Futures and Planning and an Endowment Committee meet as needed. See Organization Chart. 1.4. Management Revised 11/15/06 (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) — non-profit Name & Position/Title Complete Address Owned Thomas Walz, Executive Director* 915 E. Davenport St, Iowa City Allan Young, Chairperson 3248 Hastings Ave, Iowa City Dale Hankins, Vice Chair Solon, Iowa Mercedes Bern-Klug, Secretary 1803 C St, Iowa City Charles Skaugstad, Jr, Chair, Communty Relations Committee 602 S. Summit St, Iowa City Dr. Phillip Jones, co-chair, Endowment Committee 3201 Muscatine, Iowa City David Maeglin, Treasurer, Chair of Finance Committee 20 N. Lowell St., Iowa City Jeff Larsen 2201 Dubuque Rd., Iowa City Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City Carol Fisher 1208 Guilford Crt, Iowa City Marilyn Austen Williamsburg, Iowa Barry Morrow Santa Barbara, Calif. Josh Gersten 79 Primrose Crt, Iowa City Rev. Eugene Mathews 3113 Court St., Iowa City Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. Management Resume: Walz Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center, Mpls. 1959-61, Director Living Learning Center, U of Minn, 1964-68, Director of Community Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71), Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973- 78), Director of the U of I Gerontology Center (1977-81), Director of the Des Moines Graduate Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001. Dale Hankens, former Director of Training for Accenture (formerly Arthur Anderson) International Division, 20 years. Revised 11/15/06 David Maeglin, President of Muscatine Storage (1994-2004), currently an international investor. Jeff Larsen, former owner of several Iowa City businesses, investor. Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years. 1.5. 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? No 1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No Revised 11/16/06 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to the nearest Activity hundreds) Land acquisition $ part of property New Construction/Expansion Repair $ Acquisition and/or Repair of Machinery $ and Equipment Inventory Purchase $ Working Capital (including accounts $ payable) Acquisition of Existing Business $ All Other (provide description) - $ 99,000 property acquisition (two buildings) Total Loan Requested (All Sources): $149,000 2.2. Terms of Proposed Financing (Sources) Proposed Financing Amount Monthly Payment Type(') Rate Term Financial $ Financial Institution Odirect loan $ 50,000 Other : $ Iowa City CDBG Economic Dev. Fund $ 99,000 TOTAL: $149,000 (')Forgiveable loan requested'.. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Financial assistance has been explored with Iowa State Bank and Trust and Hills Bank, both were supportive of the project and agreed to a loan of $50,000 (pending outcome of our other applications). A letter from Iowa State bank confirms their loan Revised 11/15/06 willingness. We need to limit the direct bank loan to reduce costs of housing the two aforementioned micro -enterprises. A loan of $50.000 at prime would leave us with about $350 (monthly cash flow) mortgage payment over 30 years. Currently we are paying monthly lease payments of $1200 for this property. Revised 11/15/06 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. It is our intention to use our recent donations of $6,000 to immediately upgrade the property. This property (along with the building we recently purchased) had been neglected for many years to the point of impacting community appearances. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: Extend the Dream Foundation — underwrite cost of upgrades Iowa State Bank and Trust — provide a direct loan of $50,000 Economic Development/CDBG Council — provide a forgiveable loan of $99,000. 2.6. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. ❑ Corporate Guaranty ❑ UCC Financing Statement ❑ Irrevocable Letter of Credit ❑ Personal Guarantee ❑ Surety Bonds X Mortgage on Real Estate ❑ Escrow Account ❑ Other: Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. We also own about 7,000 worth of equipment and materials that could be used as collateral. 2.7 If the City did not provide financial assistance, could the project proceed? No, unless our Director wins the 2007 Purpose Prize for which he was a "finalist' in 2006. There are several prize winners to be selected whose organizations would each be given $100,000. It would be self-defeating even if conventional bank loans were available for the full amount since the mortgage payments would be no different than the lease payments. With our partial rent subsidy from the City for our downtown small Mall project completing its sixth and final year, we would not be able to handle the current lease levels for both sets of property from micro enterprise earnings supplemented by our savings for very long. Section 3: Jobs to Be Created/Retained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51 % of the jobs created or retained must be held by or made available to low. moderate income persons. The business acknowledges that if it fails to create and/or retain the jobs identified below by the end of the project period and maintain them for a Revised 11/16/06 period of time (usually 12 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. 3.1 If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. Micks Workshop — 2 full handicapped employees, 2-4 independent contract workers. RAMP UP — estimate one half time coordinator, 2-4 independent contract workers. None of the above are employees, each are 1099 sub -contractors. 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 Months of Project Award (please see attached Job Category Definitions) # of Jobs Created # of Jobs Retained Type of Job No. Hours Per Week Hourly Rate of Pa y Fringe Benefits* 1 1 Officials & Managers #1 60, #2 20 Open n/a Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) 2 n/a Operatives (semi -skilled) Laborers (unskilled) 6-8 $10-12hr n/a Service Workers *If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? Difficult to estimate since one of the projects will be just starting out. Hourly rate will be approximately $15/hr on a project by project timetable. The RAMP UP coordinator will be a volunteer. 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: No Revised 11/16/06 Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? Mick's Workshop is one of three furniture refinishing and repair shops listed in the yellow Pages, though we know of a few others like Knock on Wood that do essentially what Mick does. Mick's also does a variety of odd jobs for low-income persons with disabilities (e.g. we moved many elderly residents at the Ecumenical Towers during the construction of the new elevator and other type of chore services for persons who couldn't afford to hire at regular rates). The workers at Mick's also keep up our properties on F Street (mowing, snow removal, etc.) From our knowledge of local building contractors, the kind of "accessibility remodeling" at affordable prices that many low income handicapped and elderly are able to pay is hard to find. Most contractors are not interested in small scale projects of this type. The small home repair individuals take up some of the need, but there are without the expertise to assess and design what needs to be done. None of the local contractors have the knowledge of ADA standards held by Jordan Pettus, the owner (coordinator) of RAMP. 4.2. Please describe the energy and resource efficiency, waste reduction, waste exchange, and recycling programs at your Iowa City operation. We recycle all hazardous materials through the county facility at the landfill. One of our volunteers is a waste management specialist (engineer) and is planning to do a study of our facility at the end of April Part of our intended building upgrade is to increase the energy efficiency of both of the buildings on the property we want to purchase. The Workshop building has just had a new energy efficient heating unit installed and siding added (as insulation as well as cosmetic improvement). Our upgrade will include replacement of windows and frames In the 2220 F St.storage facility. Both Mick's Workshop and RAMP UP will share the same furniture refinishing and small home repair equipment as well as an interchange of expertise. Mick has construction and masonry background and Jordan was construction and sheet metal worker until his accident. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. EDF and its micro -enterprises recruit, train and utilize a large number of volunteers annually (more than 100 different persons) per year, some of these will be involved in the Workshop and RAMP micro -enterprises. The new businesses along with the old sponsor the Ralston Creek Labor Day Fair and Flea Market entering Its sixth year with annual attendance of over 1000 persons). As noted many of the projects the two micro - Revised 11/15/06 enterprises will undertake will involve assisting persons who could not otherwise pay for such services. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). No 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. IM 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. No Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [ x ] Business plan (if start-up business) [ x ] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro - forma balance sheet) [ x] Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [ x] 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [ ] Description of fringe benefits provided to employees, if applicable N/A [ x ] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Jordan Pettus, Coordinator, RAMP — AA degree in architectural drafting, 20 years experience in the trades as a sheet metal worker and construction worker. Has a consulting firm thru which he provides ADA consults for local developers on projects. Mick Vevera is the owner of Mick's Workshop (which operates financially as part Of the Vintage Shop. Mick has a high school degree, was in the masonry business with his father Bob Vevera for many years, was disabled in a fall, but has for the past six years worked as a subsidized volunteer for EDF until 2004 when we helped him Revised 11/16/06 10 open his own shop. Revised 11/16/06 11 Ix ] Please provide the social security numbers for all the persons listed under Management (Question #1.4) Mick Vevera — If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. N/A Construction loans only: Cost estimates for construction and a statement of the source of any additional funds L J Include a list of any machinery or equipment or other non -real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. None Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. 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. If applicant is a proprietor or general partner, sign below. M If applicant is a Corporation, sign below: 157 *Coorate Nam and Seal Date By: Attested by: Signature of Corporate Secretary Date: Revised 11/16/06 12 10:00 AM Uptown Bill's 04/2"7 Balance Sheet Cash Basis As of April 26, 2007 Apr 26, 07 ASSETS Current Assets Checking/Savings Bill's BookMart 2,847.24 Bill's Coffee Shop 5,912.53 Bill's Documentory 4,636.68 Computer Graphics 365.94 Escrow 65,681.14 Extend The Dream Foundation 7,411.21 Framery 507.44 Mad Hatter Room -795.49 RAMP 39.75 Sackter House -182.50 Vintage Shoppe 7,983.78 Workshop 547.11 Total Checking/Savings 94,954.83 Total Current Assets 94,954.83 TOTAL ASSETS 94,964.83 LIABILITIES & EQUITY Liabilities Current Liabilities Credit Cards American Express 627.13 Total Credit Cards 627.13 Total Current Liabilities 627.13 Total Liabilities 627.13 Equity Opening Bal Equity 63,90&15 Retained Earnings 26,605.59 Net Income 3,816.96 Total Equity 94,327.70 TOTAL LIABILITIES & EQUITY 94,954.83 Page 1 11:26 Ater Uptown Bill's 04*0107 Profit & Loss Cash Basis January through December 2006 Jan 06 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Incom", CR 718.91 500.00 544.56 609.93 600.00 608.24 624.95 1 26,775.05 16,770.72 17,545.70 16,686.05 26,104.04 14,668.96 24,072.76 Total Income 27,493.96 17,270.72 18,090.26 17,295.98 26,704.04 15,277.20 24,697.71 Expense Account Expense -74.00 85.11 0.00 0.00 0.00 0.00 0.00 AD 43.74 0.00 146.70 189.25 0.00 15.00 17.75 Auto 0.00 319.48 220.11 0.00 0.00 0.00 0.00 C 616.95 657.14 838.00 520.13 765.93 506.41 896.99 car purchase 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CC 350.00 500.00 350.00 600.00 600.00 600.00 600.00 FC 8.13 3.49 8.08 8.97 9.83 9.71 10.86 Garbage 25.00 37.71 232.00 0.00 0.00 0.00 0.00 IN 2,902.31 3,991.97 3,337.00 327.55 327.55 0.00 608.55 Insurance 0.00 0.00 327.55 0.00 0.00 0.00 0.00 interest -0.21 -0.14 0.00 -0.22 0.00 0.00 0.00 IR 1,778.31 1,569.32 1,467.73 1,958.96 3,280.37 2,639.39 2,705.00 L 0.00 0.00 0.00 320.00 320.00 320.00 320.00 M 1,525.82 583.89 2,382.57 5,215.19 6,575.30 5,703.83 6,789.23 misc 187.20 61.50 403.41 0.00 0.00 0.00 0.00 OS 0.00 0.00 0.00 72.50 31.13 168.33 64.99 Parking 15.00 0.00 0.00 0.00 0.00 0.00 0.00 PAY 1,000.00 1,115.00 2,424.69 2,541.53 3,676.87 3,357.03 2,576.00 Payroll Expenses 1,997.50 2,135.75 1,856.76 0.00 0.00 0.00 0.00 POST 119.90 316.35 348.85 399.92 229.75 222.53 264.68 R 4,292.00 8,492.00 6,567.00 2,492.00 8,217.00 4,945.00 2,392.00 S.H. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 S.H. Mort 250.00 500.00 250.00 0.00 0.00 0.00 0.00 S.H.OPER 200.00 425.00 200.00 0.00 0.00 0.00 0.00 Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 U 925.85 949.79 831.07 140.53 1,351.94 1,061.81 1,647.87 UI work study 0.00 0.00 0.00 0.00 0.00 0.00 0.00 UI work study 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Expense 16,163.50 21,743.36 22,191.52 14,786.31 25,385.67 19,569.04 18,913.92 Net Income 11,330.46 .4,472.64 -4,101.26 2,509.67 1,318.37 ■4,291.84 5,783.79 Page 1 11:26 AM Uptown Bill's 04n0107 Profit & Loss Cash Basis January through December 2006 Aug 06 Sep 06 Oct 06 Nov 06 Dec 06 TOTAL Income CR 738.11 795.53 800.00 0.00 0.00 6,540.23 1 21,830.88 30,111.72 32,035.62 25,660.41 19,957.04 272,218.95 Totallncome 22,568.99 30,907.25 32,835.62 25,660.41 19,957.04 278,759.18 Expense Account Expense 0.00 0.00 143.91 0.00 32.50 187.52 AD 197.27 167.53 415.19 267.42 190.00 1,649.85 Auto 0.00 0.00 981.44 0.00 0.00 1,521.03 C 793.31 700.54 1,535.01 1,149.30 1,055.12 10,034.83 car purchase 0.00 0.00 0.00 600.00 0.00 600.00 CC 700.00 775.00 800.00 450.00 468.65 6,793.65 FC 11.04 8.71 11.63 0.00 0.00 90.45 Garbage 0.00 0.00 59.75 59.75 59.75 473.96 IN 567.89 221.00 1,238.01 4,440.00 2,650.79 20,612.62 Insurance 0.00 0.00 655.13 327.57 59.46 1,369.71 interest 0.00 0.00 0.00 0.00 0.00 -0.57 IR 2,181.96 1,917.24 1,941.45 0.00 0.00 21,439.73 L 320.00 320.00 0.00 0.00 0.00 1,920.00 M 5,022.53 7,682.26 2,068.77 577.68 79.23 44,206.30 misc 0.00 0.00 250.85 748.75 166.45 1,818.16 OS 15.98 133.87 0.00 0.00 0.00 486.80 Parking 0.00 0.00 0.00 0.00 15.00 30.00 PAY 3,309.50 3,418.75 2,532.50 1,198.98 2,288.77 29,439.62 Payroll Expenses 0.00 0.00 1,635.00 1,076.75 6,918.34 15,620.10 POST 283.46 237.81 273.94 124.29 0.00 2,841.48 R 8,292.00 6,667.00 3,881.50 4,867.00 2,467.00 63,571.50 S.H. 0.00 0.00 225.00 425.00 495.00 1,145.00 S.H. Mort 0.00 0.00 250.00 500.00 500.00 2,250.00 S.H.OPER 0.00 0.00 0.00 0.00 0.00 825.00 Tax 0.00 0.00 0.00 600.00 200.00 800.00 U 1,246.00 1,501.38 1,639.21 1,515.63 2,444.96 15,276.04 UI work study 0.00 0.00 143.75 0.00 0.00 143.75 UI work study 0.00 0.00 381.25 0.00 0.00 381.25 Total Expense 22,940.94 23,751.09 21,063.29 18,928.12 20,091.02 245,527.78 Net Income -371.96 7,156.16 11,772.33 6,732.29 433.98 33,231.40 Page 2 1 PROFIT AND LOSSES 2006-2007 EXTEND THE DREAM FOUNDATION MICK'S WORKSHOPNINTAGE SHOPPE Month Expenses Revenues 06 Aug $5, 229.51 $5,307,85 Sept $4,086.81 $4,392.63 Oct $5,166.66 $5,017.63 Nov $5,084.54 $6,219.40 Dec $3,501.93 $5,156.43 07 Jan $8,267.81 $4,440.97 Feb $4,413.81 $3,425.46 Mar $3,860.45 $4,785.55 Total $39,611.52 $38,745.55 Revenues minus expenses+-$865.60 RAMP (new business start up scheduled for March II) Total of $140 expenses for administrative start up; no revenue. BUSINESS PLAN 2007 RAMP UP Description: the following business plan addresses a start up micro -enterprise called RAMP UP. RAMP was accepted as a non-profit start up enterprise on January 1s`, 2007 under the Extend the Dream Foundation. It is officed at 2203 F St. in the EDF Ecommerce Building and works out the properties across the street 2218&2220 F St. The mission of RAMP is provide design, consultation and construction services for improving the accessibility of the domiciles of low-income handicapped and elderly or buildings frequently used by them. Staffing Plan: RAIVIl' will be coordinated ("owned") by Jordan Pettus, a person with disability and a background in architectural drafting and design. He will be assisted by Mick Vevera (owner ofMick's Workshop) and other sub -contract employees (1099's) on a project by project basis. To the extent possible all persons associated with RAMP will be low-income, handicapped or elderly retired. Management Plan: RAMP will have its own checking account at Hills Bank and will be the sole determiner of the projects it accepts. The accounting and fiscal management of the enterprise will be handled by the parent EDF organization. The insurance liabilities of projects will be subsumed under the EDF comprehensive plan that covers all entities managed by EDF. RAMP will work with an advisory committee of representatives from EDF board, Elderly Services board, the Johnson County Coaltion on Disability and a like representative from a local consumer aging group. RAMP has successfully applied for a Federal contractors license and is currently applying for a state license (both are needed to do business with Federal agencies, such as the VA of Iowa City). Projected Work Flow: in its first year, RAMP anticipates responding to approximately one request a month with about 30% requiring some construction follow through (two referrals in late 2006 from the VA of Iowa City are pending). The other 70% will involve some household rearrangements, minor changes in lighting or design and estimates of more major modifications (e.g. addition of a ramp). These projects will be invoiced at an average of $15-20 per hour with an understanding that pro bono services may often be expected. Design services will be carried out exclusively by RAMP's owner, Jordan Pettus. Minor construction services will be handled through a sub contract with Mick's Workshop, major construction services will be handled through small scale local contractors working under the general contract supervision of RAMP. Marketing: RAMP intends to grow slowly during its first year. The principal marketing will be through referrals from EDF and Elderly Services. A pamphlet describing the program will be produced and distributed through a variety of local sources (e.g. senior center, Independent Living, etc.) Later in the year a feature article will be arranged with the local press. Budget Summary: RAMP will operate out of its own checkbook. Start up capital of $150 (from EDF) was used to open the account. A grant application to the Mary O Cauldron fund requesting $7000 start up capital was submitted. In the interim, EDF will use its internal resources to support small projects. RAMP will have no rental obligations for either its office or work space, until it is fiscally able to contribute. The owner will work without pay as a volunteer until financial developments allow a profit share. Expenses and Revenues: it is estimated that after a ninety day start up, by April l't, RAW can expect a cash/expense flow of $10,000 annually. Annual expense breakdown: * Rent and equipment......................................................00 Transportation............................................................. 00 Office supports (consumables, telephone) .............................00 Project supplies..........................................................$4,000 Project sub contracts ................................................... $6,000 Total $10, 000 • Most of the actual cash flow and revenue will come via a major contract to build ramp(s) for veterans (one already approved at $5000). Annual Revenue breakdown: Service fees from projects .......................................... $.6,000 Grants and loans - EDF.......................................... $ 1,000 Mary O Cauldron ................................................... $ 3,000 Total $ 10,000 BUISNESS PLAN 2006-2007 MICK'S WORKSHOP STAFFING PLAN 1. Ownership will remain as before, Mick Vevera is the owner. His staff includes one regular part-time worker (JW) and several on -call independent contract workers (LW, BB, JC, JV). 2. EDF Executive Director will provide oversight and will be responsible for inventory purchases and approval of chore service requests. PROJECTED WORK FLOW 1. Eighty percent of activity will involve refinishing and repairing furniture, mainly antiques. 2. Ten percent of activity will involve chore services ("small home repairs)".. 3. Ten percent of activity will involve "buying", assessing, securing voluntary contributions of in -kind donations. 4. The above activities combined will require 100 hours of paid or voluntary work weekly. _ MARKETING 1. Regular ads will be placed in local newspapers associated with monthly summer yard sales and special events (the Ralston Creek Fair and Flea Market). 2. Signage will be redesigned and placed on lawns of 2220 & 2203 F Street noting the workshop hours and activities. 3. A link to Mick's Workshop will be designed for the new Uptown Bills website (uptownbills.org) BUDGET SUMMARY 1. Mick's Workshop is fiscally a part of The Vintage Shoppe (operate out of one checkbook). It is anticipated that the combined micro enterprises will maintain an average monthly revenue flow of $5000/month for 2006-2007. Total Income............ $60,000 2. Expenses for this calendar year include: a) consumable supplies .................................... $1800/mo or 21,600/yr b) inventory replacement ............................. I ... $600/mo or $7,200/yr c) transport (gas, insurance, repair) ..................... $200/mo or $2400/yr d) stipends and sub contracts ................................ $10,000/yr e) lease payments and utilities (based on current lease) $18,000/yr Total Expense............ $59,20 V-11'-� PROJECTED DEVELOPMENTS 1. Prepare CBDG public facility grant ( request $99,000) to buy the property (two buildings at 2218 and 2220 F St.) 2. Pursue bank loan with local bank to complete financing ($50,000) of the purchase price of $149,000. An earnest money contract to buy the building will be signed shortly (Feb., 2007). 3. If the property is purchased, $6000 donation in the escrow account will be used to cover costs of the energy upgrade of both buildings on the property. Some cosmetic improvements (e.g. would be carried out as well). q m E E 3 cn 0 O O N v 0 L. CL co Lo ■ � U E .0 t0 0 Q. p U) tv'. s V) � N � � N ca �... � cu 0 EI E Q 0 0 c3 O Q `V C W U m U 2 :5 Gi Eg ®❑ ❑ ■ M ■ fJ m 7 ui 0 O M N M � M N 6R i o LO I IL N N(D � m c (u o M 0 W W CN 1 Cl) U o. � .� V. w rz C> a JOR 0 LL Q 0 0 0 0 0 o a 0 0 0 0 o C; Y 0 0 0 o a L o m U-) o U') A 0 0© o 0 0 0 0 0 0 0 0 0 0 o co co co co co 0 0 0© o 0 0 Ct7 Ld ct M N r- 69 64), 69> 644 bg 649� A cco cl L Q L cca G I.L. C cu "3 O Z U O N U) 0 o o b 0 3 04 o �o U � 'b O � O b o CCi os .-4 cl O U W 0 0 0 r � ° � O As .0 ° 6 0 w a. .$-4 w 0 00 o N o� an o � gz IL4 a S4,4 "¢AAUUa• r CITY OF tOWA CITY `Il MEMORANDUM Date: May 9, 2007 To: Economic Development Committee From: Wendy Ford Re: Downtown Market Niche Analysis Marketek is assembling background information on Iowa City in preparation for their first site visit, May 29-31. They have a full schedule including driving tours, walking tours, a lunch meeting meeting with the Economic Development Committee, Chamber and Downtown representatives leading the project (tentatively set for May 29 at noon); 6 focus group sessions; a community meeting and a wrap up with our local committee again on Thursday. Following this memo are the drafts of two surveys • for downtown shoppers/consumers and • for our'downtown businesses. Staff is currently investigating the most effective and efficient ways of distributing the surveys to consumers. Among the choices are water bill distribution (a 4-week process), direct mail to residents, and web -based survey requiring PR push to get people to respond. Iowa City Area Shopper Survey Your opinion counts! The City of Iowa City and the Iowa City Chamber of Commerce are working to improve shopping and services in downtown Iowa City. Please take a few minutes to complete this survey. If you are in a hurry, answer Deadline: June 15. 2007. �,'ovts u^s possi � It . Section 1: Shopping Habits 1. Where do you do most of your non -grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? ❑ Downtown Iowa City ❑ Des Moines ❑ Coral Ridge Mall ❑ Mail Order ❑ Sycamore Mall ❑ Internet ❑ Cedar Rapids ❑ Other:- (Tease specify) 2. What are the primary reasons for shopping where you do? PLEAS "t' ELECT YOUR TOP THREE (3) REASONS. ❑ Convenience Ll Quality ❑ Familiarity © Selection ❑ Loyalty o Service ❑ Price , ❑ Other (please specify) Section 2: Shopping Needs in Iowa City 3. What types of SPECIALTY/MERCHA4DJi,4E do you think are needed and would be supported in Iowa City if they existedlo(Chick ALL that apply) ❑ Arts & Craft Supplies Luggage ❑ Beauty Supplies ❑ -Pet, Supplies ❑ Books o Sporting Goods ❑ Cameras & Supplies ❑ Fabric/Sewing Supplies ❑ Crafts/Handmade Items ❑ Electronics ❑ Computers &;Accessories ❑ Music & CDs ❑ Galleries ❑ Consignment ❑ Auto Supplies ❑ Toys & Hobbies ❑ Gifts &Cards ❑ Other (please specify) 4. What.kinds of HOUSEHOLD�FII RNISHINGS are needed and would be supported in Iowa city,,if they existed?: (check all ttrat,apply) a Antiques=' ❑ Garden Supplies ❑ Furniture ❑ Lighting ❑ Appliances ❑ Other (Please specify) ❑ Linen & Towels 5. What kinds' of APPAREL stores are needed and would be supported in Iowa City if they existed? (check 4111hat apply) ❑ Women's Casual ❑ Children & Infants ❑ Women's Business ❑ Teen/Young Adult ❑ Women's Specialty ❑ Shoes ❑ Men's Casual ❑ Jewelry ❑ Men's Business o Other (please specify ❑ Men's Specialty 6. What kinds of CONVENIENCE MERCHANDISE are needed and would be supported in Iowa City if they existed? (check all that apply) ❑ Bakery ❑ Hardware ❑ Groceries ❑ Building Supplies ❑ Pharmacy ❑ Other (please specify) 7. Some of this merchandise may be available locally. Please explain why you may not be buying these products locally. Section: 3 Service Needs in Iowa City 8. What kinds of LEISURE/ENTERTAINMENT services are needed and would be supported in Iowa City if they existed? (check all that apply) ❑ Restaurants ❑ Concerts/Live Music ❑ Exercise Studio/Gym ❑ Outdoor Recreation (please ❑ Bowling specify) ❑ Movie Theater ❑ Indoor Recreation (please ❑ Live Theater specify) ❑ Galleries ❑ Other (List`as many as you wish) 9. What kinds of GENERAL SERVICES are needed and would be supported in Iowa City if they existed (check all that apply) ❑ Appliance Repair ❑ Gasoline/Auto Repair ❑ Car Wash/Detailing o Video/DVD Rental ❑ Computer Repair 0 ll-Hour Photo Dev. ❑ Computer Training CI . Othe((Liist as many as you wish) ❑ Day Care 10. What kinds of PERSONAL SERVICES existed? (check all that apply) ❑ Dry Cleaner/Laundry ❑ Hair/Beauty 11. What BUSINESS/PRC in Iowa City if they ex ❑ Bank/Financial ❑ Insurance ❑ Copy Center 12.In your ophil and wouldk ❑ Bakery ❑ Chine; ❑ Family ❑ Grille ❑ Pizza/I ❑ Coffee services c all that ❑ Pack & Mail ❑ Legal/Accounting ❑ Other (List as many as you wish) TAURANTS AND EATING PLACES are needed in Iowa City fisted? (check all that apply) Q� ' Fast Food ❑ Cafeteria Ll Seafood ❑ Dinner Theater ❑ Healthy/Natural ❑ Fine Dining ❑ Deli ❑ Tea Room o Mexican ❑ Other (List as many ❑ Steakhouse as you wish) 13. What HEALTH SERVICES do you think are needed and would be supported in Iowa City if they existed? ❑ Chiropractic ❑ Vision Care ❑ Dental o General Health Care ❑ Homeopathic/Naturopathic ❑ Other (please specify) ❑ Hospice 14. Some of these services may be available locally. Please explain why you may not choose local service providers, if you are aware of their services. Section 4. Shopping/Personal Business Preferences Questions 15-20 deal with what influences your current preferences as they relate to shopping and doing personal business in downtown Iowa City. 15. Currently, what are the major ADVANTAGES of shopping or doing personal business (e.g. banking) in downtown Iowa City? (Please check the top 3). ❑ Convenient location ❑ Less traffic & crowds ❑ Fair prices ❑ Within walking distance ❑ Friendly service ❑ Selection of goods/services ❑ Easy to find parking ❑ Know the store employees ❑ Support local businesses o Other (please specify) 16. Currently, what are the major DISADVANTAGES of shopping or doiing personal business (e.g. banking) in downtown Iowa City? (Please check the top 3). ❑ Poor appearance ❑ Traffic ❑ Poor selection of goods/services ❑ Unfriendly/11 poor: service ❑ High Prices ❑ Inconvenient location ❑ Lack of Parking ❑ Other (please speciify), ❑ Limited hours 17. What can downtown merchants do to improve their stores? ❑ Improve appearance ❑ Expand store hours ❑ Promotions/advertise ❑ Improve selection ❑ Improve safe access ❑ Be friendlier ❑ Lower prices/sales ❑ Other (please specify) 18. Indicate, by checking the appropriate number, how Imptir#snt,pach of the following is to you in making purchases. IVo Veit' Neutral Very Irn `ortant Important Convenience 1 2 4 5 6 7 Safety/Security1 2 3 4 5 6 7 Low Price 1 2 3 4 5 6 7 Speed of Delive "=-'!1; 2'''`3 4 5 6 7 Variety1" 2 3 4 5 6 7 CustomerSeririce 1 2 3 4 1 5 1 6 1 7 19. What are the best times for you to shop during the week (MONDAY-FRIDAY)? ❑ $:0-5:00 PM ❑ After 5:00 PM 20. What arelhe best times for -you to shop on the weekend? ❑ Saturday morning: ❑ Sunday afternoon ❑ Saturday afternoon ❑ Other (please specify) 21. Would you consider living in downtown Iowa City if high quality new or renovated units were available? ❑ Yes ❑ No ❑ Not Sure 22. If you checked YES to question 21, would you be interested in: ❑ Renting or ❑ Owning Section 5. Your Thoughts about Downtown Iowa City Questions 23-25 pertain to specific thoughts you have in relation to downtown Iowa City 23. As Iowa City continues to grow and change, if you could keep one thing the same about the downtown area, what would it be? 24. If you could change one thing about the downtown area, what would it be? 25. What identity or image would you like to see downtown unique shopping and business district? for itself as a 65 or over City of Iowa City Area Business Survey 1 The City of Iowa City and the Iowa City Chamber of Commerce are working to improve shopping in the downtown Iowa City area. Please take a few minutes to complete this survey. All information will be kept confidential. Statistics will be used to help these organizations to better serve the Iowa City business community. Deadline: June 15, 2007. 1. What is the nature of your business? ❑ Retail ❑ Services ❑ Professional ❑ Restaurant ❑ Public Administration ❑ Construction ❑ Transportation/Utilities ❑ Financial/Insurance/Real Estate ❑ Other (Please specify) 2. How long have you been operating this business in Iowa City? ❑ < 1 year ❑ 1-4 years ❑ 5-9 years 3. Name up to 3 advantages or strengths you associate with 1) 2) 3) 4. How many employees does your compal ny;ha—VO Please Part-time Ful 5. What are your hours and days of operation? Day: ❑ Mon — Fri ❑ Tue - Sat Hours: ❑ 8 am,— 5 pm ❑ 10 am —; 6 pm 6. If you answered OTHE Days of Week: 7. Do you own or lease your space Hours: ❑ Mon - Sun ❑ Other: ❑ 24-hour ❑ Other usiness operation hours: Lease 8. If you lease, what is the rate you are paying? Please share the $/square foot, OR share your monthly rent and the estimated size (in square feet) of the space you rent. 9. How would you characterize your current business' activity level (i.e. last 24 months of operation)? ❑ Declining business activity (fewer clients, fewer sales, less income) ❑ Holding your own (same level of business, fairly steady) ❑ Business is moderately growing, increasing ❑ Business is rapidly expanding © m) MwKetew City of Iowa City Area Business Survey 2 10. Which description below best characterizes your plans to expand or reduce your operations in the next one-two years? ❑ Plan to expand operations ❑ Plan to reduce operations ❑ Plan to sell business ❑ Plan to relocate ❑ No plans to change ❑ Uncertain 11. Please check any type of investment or improvement you have made in your business in the last two years and provide the estimated value of investment/improvement: ❑ Physical improvements (store design/layout, interior/exterior remodeling) $ ❑ New/expanded products, services, inventory $ ❑ New/expanded marketing/promotional activities $ ❑ New/additional employees $ ❑ Systems improvements $ ❑ Other: $ ❑ None 12. Please provide the estimated $ value for each investment/improvement checked in question 9. 13. Please check any type of investment or improve'mdntyou plan on asking in the next one -to -two years 14. What is the primary ❑ Iowa City ❑ ❑ Internet 0 15. If you cater to s, ich the maioritY of your sales are derived? (Choose just one) County,❑ University -related ❑ Travelers/Tourists urists, please provide more detail on this market: (For example, "We ure a large share of business travelers.'] 16. In addition to a strong economy, what are the critical factors for the success and expansion of your business? (Check all that apply) ❑ Qualified Labor ❑ Financing ❑ Tourism ❑ Public access ❑ Current inventory ❑ Foot traffic ❑ Up-to-date equipment/inventory ❑ Other (Please specify): © (�r�,� marwetew City of Iowa City Area Business Survey 3 17. What are some of the major issues or obstacles facing your business today? (Please check the top five priority issues) ❑ Customer traffic (not enough/shrinking) ❑ Property improvements (fagade, etc.) ❑ Cost of rent/property ❑ Availability of telecom services ❑ Cash flow/working capital ❑ General operating costs ❑ Cost of rent/property ❑ City/County/State codes or regulations ❑Skill level/preparation of employees ❑ Other (Please specify): ❑ Current economic conditions ❑ Public safety/crime ❑ Parking ❑ Payroll costs ❑ Competition ❑ Insurance costs ❑ Availability of employees ❑ Computer/technology issues ❑ Outdated machinerv/techryol-( 18. Please expand on any of your answers to the question above. 19. To keep your business healthy and cc are important to your company's growth? ❑ Business expansion/relocation informati ❑ Market identification ❑ Business planning and cash flow ❑ Assistance with loan preparation ❑ Property and fagade imprdvemkts'� OTHER (please specify);,` 20. Are you interested in Iowa Citv or,toenc 21. 22. As downto% the shopp © (r , PwKeteK types of information or assistance mployee hiring/skills training laretjrtg/Advertising programs Is the Internet for E-commerce usiness management training omputer/technology assistance iness marketing effort to attract customers to to shop locally? :s to grow and change, if you could keep one thing the same about what would it be? City of Iowa City Area Business Survey 23. If you could change one thing about downtown Iowa City, what would it be? 4 24. What identity or image would you like to see downtown Iowa City develop for itself as a unique shopping district attractive to residents and visitors alike? 25. How would you rate your overall confidence in the economic ❑ High ❑ Moderate ❑ Low 26. Are there products or services that your business currentl, would purchase in town if they were available? ❑ Yes ❑ No 27. If you answered Yes, please name them and explain your,rt 28. In your opinion, what could Iowa City currently shopping in other areas? 29. What could local area? 30. All to contact you to ❑ Yes 31. Is your business Ic 32. Please prouldous do toattract more and other shoppers who live out of the I be kept confidential. However, if you would like a small business advisor s technical assistance or other issues, please check YES below. U No in.downtown Iowa City? ❑ Yes ❑ No efollowing information. Please share any other comments below or attach a separate page. Thank you for completing the survey. © 6 marwetew