HomeMy WebLinkAbout03-27-2008 Council Economic Development CommitteeAGENDA
City of Iowa City
City Council Economic Development Committee
Thursday, March 27, 2008
8:00 a.m.
Lobby Conference Room
Iowa City City HaU
1. Call to Order
2. Consider approval of the minutes of the February 19, 2008 Economic
Development Committee Meeting
3. Consider a recommendation to the City Council on a request for an
amendment to the Hieronymus Square Development Agreement
4. Consider a recommendation to the City Council on a request from Barkalow
and Associates to fund a redevelopment plan for Towncrest
5. Staff time
6. Committee time
7. Adjournment
draft
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 19, 2008
CITY HALL, LOBBY CONFERENCE ROOM, 8:30 A.M.
Members Present: Regenia Bailey, Connie Champion, Matt Hayek
Staff Present: Wendy Ford, Jeff Davidson
Others Present: Nancy Quellhorst
CALL MEETING TO ORDER:
Chairperson Regenia Bailey called the meeting to order at 8:30 A.M.
APPROVAL OF MINUTES OF JANUARY 15.2008:
Hayek moved to approve the minutes of the January 15, 2008 meeting as presented; seconded
by Champion. Motion carried 3-0.
2007 ANNUAL ECONOMIC DEVELOPMENT REPORT:
Ford noted that this report informs the community of activities and accomplishments to date, in
reference to the two-year plan established a year ago. She reiterated their objectives to foster
the retention and expansion of primary businesses; support the development and vibrancy of
downtown; assist in the development of entrepreneurial businesses in Iowa City; and to aid our
partners in workforce development in the community. She then asked Members if they have any
questions for her or Davidson regarding this report. Davidson asked Ford to speak more about
Objective #1, under the completed items, where it states, "Final production stages of a joint
project with ICAD to market the area as a place to do business." Ford explained to Members that
this is a joint project with ICAD listing demographic information, quality of life information, cost of
living information, education, etc. Hayek inquired about how the "how to do business booklet" is
coming along. Ford stated the Economic Development Intern, Miles, is working on this. She
briefly explained what all will be covered in the booklet.
Bailey asked whether communication with businesses in Iowa City being done through the web,
and asked how this is being done on a regular basis. Ford noted staff desires to improve
regularity. Jody DeMeulenaere, the Public Information Specialist, will work on getting more word
out to the community about business going on in Iowa City. Examples could include information
on resources through the City, or information that might be helpful in terms of new developments.
Bailey asked whether, for example, when a new business opens, a press release done to get the
word out to the community. Ford stated that is not currently the practice, but is certainly
something they could do. This led to a discussion about the attitude that Iowa City is "not
business friendly" and Bailey stated that she believes they need to communicate more of the
"successes" and this could be helpful. Bailey reiterated that she would like to see them
communicate the successes more. The discussion turned to possible news stories that could be
done on businesses in the area that have done well.
Davidson stated that he and Ford will need some input from the Economic Development
Committee regarding infrastructure initiatives as Iowa City needs to be ready for future
developments. Currently there are no large parcels available with infrastructure in place, and
Davidson stated that they need to look at expansions at the edges of town and get appropriate
property ready for development with roads, sewers, etc. This, he believes, will help in the
annexations that are needed for future development. He believes they need to be more
aggressive in this area. Champion and other Members agreed. Bailey and Champion agreed
that this topic should be brought up at the City Council meeting. Davidson stated that this would
be a good idea, to help get the concept out there. This led to a brief discussion concerning the
Economic Development Committee Meeting
February 19, 2008
budget, and what projects could be moved around so that this infrastructure could begin in these
areas.
Ford noted that there is some possible action on the Aviation Commerce Park. She noted that
they are still awaiting an offer, and are having a lot of communication from a potential business.
She hopes to have something final to report later this week. This proposed business is interested
in the three largest lots in Aviation Commerce Park. Bailey asked if they could put the Airport and
the Aviation Commerce Park on an agenda at an upcoming meeting as she would like to further
review what is happening there. Davidson briefly explained what the Merschman Seed
agreement will entail for the Airport.
Champion asked about the Hieronymus Square project and whether they have to come back to
the City on the TIF or not if they redesign the project. Ford stated that she was asked about this
last week, and the agreement states that they are to start this project by May of 2008, and that
they would be in default if the start date passed. If they were still interested and desired it, they
could propose a new project that would request TIF financing, but all would have to be negotiated
again. Davidson then noted that Hieronymus is stating that they doubt they will build the building
that the original agreement was predicated on. It was noted that Hieronymus will most likely have
to come back to the City to request a new agreement.
STAFF TIME:
A. Downtown study follow-up meetings, schedule — Ford noted that several Members have been
involved in one-on-one meetings with business owners in assessing opinions of the
Downtown Market Niche Analysis recommendations. She noted that Nancy Quellhorst has
talked with many business people outside of the downtown area, and she asked Quellhorst to
summarize what she has heard. Quellhorst noted that most of her conversations have
centered on a willingness to financially support this effort. Ford stated that her conversations
have covered everything from those willing to take an active part to those who believe things
will take care of themselves. She noted that they have meetings scheduled for the rest of this
week with businesses, and they hope to have these one-on-one meetings completed by the
end of February. Once these meetings are concluded, Ford hopes to have everyone come
together and find a consensus on how to move forward with this. Members then asked
miscellaneous questions of Davidson and Ford on what other cities provide for their
downtown businesses, and what is done privately. Davidson stated they will need to have
further discussions regarding these issues. Bailey asked if they could get further information
on "improvement districts" and the tax rates applicable to something like that. She stated that
she would like to see some scenarios based on downtown businesses and what this could
generate. Ford noted that they still have the square footages, so they could plug this
information in and do some different scenarios of revenue generation. A brief discussion
then ensued regarding a SSMID (self supporting municipal improvement district), and
Members gave their thoughts on this possibility.
B. Bailey stated that she would like to focus on the things that people are talking about, and then
have a discussion about what additional things a staff person would do in managing and
promoting the downtown. Ford noted that this is something tangible for people, but first, she
believes they need to show the value of having someone in a position like this, someone who
will bring more business to the downtown. Davidson noted that a misperception is that a
downtown business manager will be closing bars and telling people who they can lease their
buildings to. He believes they need a strategy to dispel some of these rumors. Members
then briefly discussed various communities that have SSMIDs and how this is working for
them.
C. Business Friendly Cities article in Chamber newsletter — Ford noted that she gave Members
a copy of this article.
Economic Development Committee Meeting
February 19, 2008
COMMITTEE TIME:.
ADJOURNMENT: Champion moved to adjourn the meeting at 8:45 A.M.
Council Economic Development Committee
ATTENDANCE RECORD 2008
NAME
TERMEXP.
Cn
co
00
Regenia
01102/10
X
X
Bailey
Matt
01102/10
X
X
Hayek
Connie
01/02/10
X
X
Champion
Key:X = PresentO = AbsentO/E = Absent/Excused
r �.,--..�I� CITY OF IOWA CITY
f-`'°�"'A� MEMORANDUM[
Date: March 21, 2008
To: Economic Development Committee
From: Wendy Ford
Re: Request for an amendment to the Hieronymus Square Development Agreement
This week, we received a letter from Kristin Frey, the attorney representing Hieronymus Square
Associates, L.L.C., requesting a one year extension of the deadlines imposed by the
Hieronymus Square Development Agreement.
Background of the Development Agreement
Hieronymus Square Associates' vision for a large and architecturally significant building which
would serve as a catalyst for the further development of the central business district was agreed
to be mutually beneficial: The City would begin to see the realization of the southerly growth of
downtown, protecting the historic and less intensive nature of existing downtown buildings; all
local taxing entities would receive significantly more property tax revenues than what would be
generated by a typical development project; the city would have another signature building on
its skyline; and there would be additional commercial and office space in the tight downtown
market.
On October 4, 2006 the City Council and Hieronymus Square Associates agreed that the
developer would build a specific building with financial assistance in the form of tax increment
financing (TIF) rebates which would begin approximately 21/ years after completion of the
building and extend to June, 2024.
Before the agreement was struck, the developer had to illustrate that financial assistance was
necessary to do the project. They worked with City staff to illustrate the financial projections for
the project which highlighted the gap in their ability to finance the project. Staff concurred upon
due diligence, that the project would not be possible without financial assistance.
In exchange for the City's financial assistance, the developer agreed to:
• Make a minimum $40 million investment in a 12-story mixed use building,
• Build in 6 floors of retail, commercial and office space, including first floor retail,
• Make best efforts to establish a viable hotel as part of the project, and if not, apartments
in their place,
• Make all related streetscape improvements,
• Obtain an Energy Efficiency Certification such as LEED or Utility Company certificate
• Begin construction by May 1, 2008,
• Complete construction by December 1, 2010, and
• Pay 100% of all property taxes due every year.
Hieronymus Square Associates, L.L.C. is now requesting a one year extension of the deadlines
related to commencement and completion of construction. Although various aspects of the
project are being re-evaluated, the developer has indicated a continued commitment to the
overall vision for the project.
The Options
1. Let the start date lapse, which would necessitate that the developer start the entire
development agreement process over, or
2. Amend the agreement to extend the start and completion dates (and associated first rebate
date) by one year.
March 21, 2008
Page 2
Staff Recommendation
Because the property is owned by the developer who maintains a vision for the project that is
essentially the same as it was on October 4, 2006, staff recommends amending the
Development Agreement as requested.
A significant amount of time and money have already been invested by the developers and by
City staff in getting the project to this point. We believe we continue to share the same overall
vision for the project. We would rather ensure the project we want is not truncated by a date
which may have no bearing on the ultimate success of the project.
We also note that if the land for the proposed project was owned by the City rather than the
developer, staff might be less inclined to recommend extending the date. If there were
competition to develop the land from multiple developers, we might have leverage to complete
the project according to the original schedule. However, with the current set of circumstances,
there is only the risk that a far less substantial project without financial assistance might become
be the path of least resistance for the developer. That scenario, as we illustrated 18 months
ago, could mean the difference of more than $9 million in property tax revenues over the coming
20 years, even after assisting the larger project with TI F.
Please be prepared to formulate a recommendation to the City Council regarding this matter at
your March 27 meeting.
cc: Jeff Davidson
KENNEDY, CRUISE, FREY & GELNER, L.L.P.
ATTORNEYS AT LAW
920 S. DUBUQUE STREET - P.O. BOX 2000
MICHAEL W. KENNEDY
IOWA CITY, IOWA 52244
KIRSTEN H. FREY
TELEPHONE (319) 351-8181
KANDIE K. GELNER•
FAX (319) 351-0605
LILLIAN LYONS DAVIS"
M.K. PILCHER HAYEK`
ELIZABETH V. CROCO*
March 17, 2008
Ms. Wendy Ford
Economic Development Coordinator
City of Iowa City
410 East Washington Street
Iowa City, lA 92240. 1826
Re: Hieronymus Square Project
Dear Ms. Ford:
'ALSO CERTIFIED
PUBLIC ACCOUNTANT
"ALSO CERTIFIED MEDIATOR
"'SE HABLA ESPAF40L
OF COUNSEL:
JOHN D. CRUISE
As you know, I represent Hieronymus Square Associates, L.L.C. and I am contacting
you regarding the Agreement for Private Redevelopment between my client and the City of
Iowa City for the redevelopment of the Hieronymus Square property located at the intersection
of Clinton and Burlington Streets in Iowa City, Iowa. The Agreement for Private Redevelop-
ment is dated October 4, 2006 and was recorded June 27, 2007 in Book 4178, Page 610 of the
Records of Johnson County, Iowa. I am writing to request an extension of the deadlines im-
posed by that Agreement.
As you know, Paragraph 3.1 of the Agreement requires that construction of the mini-
mum improvements be commenced on or before May 1, 2008 and that all construction be
completed by December 1, 2010. While my client has made a significant investment in the
property in terms ,of both time and money, construction is not ready to begin at this time.
When the project was let for bid last fall, the bids came back substantially over budget. As a
result, despite the City's investment in the property as well, the proje;,t simply Nvas not fiscally
viable. Therefore, my client is in the process of reevaluating the design of the building, as
well as looking for ways to decrease the cost of construction.
My client sincerely appreciates the cooperation of the City of Iowa City to date and re-
spectfully requests that the Agreement for Private Redevelopment be amended by extending the
deadlines for the commencement of construction and all of the associated dates by one year. In
other words, we respectfully request that the Agreement for Private Redevelopment be
amended to indicate that construction of minimum improvements must begin by May 1, 2009
and be complete by December 1, 2011. We would also ask that the other associated deadlines
be extended by one year as well. Of course, my client recognizes that there is an expiration
date on the right to seek reimbursement of the property taxes paid and that this date will not
change.
Wendy Ford, City of Iowa City
Page 2
March 17, 2008
If you need any additional information to process this request or if I can be of any fur-
ther assistance, please do not hesitate to give me a call. Otherwise, my client sincerely appre-
ciates any assistance that the City of Iowa City can provide.
Very truly yours,
Kirsten H. Frey
KHF/gb
Enclosure
cc: Kevin Digmann
KF321L69a9100
r
��:.�I� CITY OF IOWA CITY
it
t%q=-.9 rd� MEMORANDUM
Date: March 21, 2008
To: Economic Development Committee
From: Wendy Ford
Re: Consider a recommendation to the City Council on a request from Barkalow and
Associates to fund a redevelopment plan for Towncrest
We have received the attached letter from Tracy Barkalow, requesting the City to fund a
redevelopment plan for Towncrest.
Background
The Economic Development Committee concurred at your meeting of September 13, 2007 that
there was interest in the redevelopment of the Towncrest Area and that you would consider an
Urban Renewal Plan for the area.
Concurrently, Ernie Stopplemoor, a property owner in the area, partnered with realtors at
Barkalow and Associates to explore the feasibility of a large redevelopment. Barkalow and
Associates have contacted Southgate Development Company and McClure Engineering for
assistance in preparing a cost estimate for a redevelopment plan.
Recommendation
Mr. Barkalow is requesting that the City pay $54,000 toward consulting fees to prepare a site
plan for the redevelopment of the area. Given the diverse ownership and property conditions in
the area, it is staff's opinion that there is merit in the City participating in preparation of a
redevelopment plan for Towncrest. However if the public is to pay consulting fees, we believe
that there should be an open and competitive process to identify the best consultant' for the
project. We recommend that a Request for Proposals (RFP) be circulated seeking proposals
from consultants. We also recommend beginning a process to gain public input about the future
of Towncrest within the next six months.
The Public Process
The City's Urban Planning Division uses an established process in gathering input for District
Plans in the City. We feel this process would work well as we consider the future of Towncrest.
1. Hold a public meeting or a series of public meetings in the neighborhood
2. Present some background about the history of the area and current conditions, such as
land uses and traffic counts.
3. Ask questions to get at the issues, such as:
• What do you like about the area?
• Why did you locate your business in the area?
• Are there any problems in the area?
• What could make this a better place to do business?
• What would you like to see for the future of the area?
• Are there any issues with traffic, city services etc.?
These questions usually result in a good discussion. The most important issues seem to rise to
the top because they are identified by multiple attendees and the attendees indicate a
consensus. This meeting would be conducted by City staff.
Preparations of the Redevelopment Plan
After public input sessions, and a determination of the exact boundaries of the proposed
redevelopment area, staff will prepare a Request For Proposal (RFP) for preparation of the
redevelopment plan. The RFP will require proposers to show -
March 21, 2008
Page 2
• how they will incorporate the needs of the neighborhood,
• how their proposal ties in with the City's Comprehensive Plan, and
• what their vision of a redeveloped Towncrest would look like.
Let's discuss how you wish to proceed at your March 27 meeting. I want to specifically address
the relative cost sharing you envision between the City and Barkalow and Associates.
cc: Jeff Davidson
Bob Miklo
59 2ND STREET
CORALVILLE 1A 52241
BUS: (319)-354-8644
TOLL FREE: (800)-728-6819
FAX: (319)-354-865
WEBSITE: www.barkalowhomes.com
March 18, 2008
Wendy Ford
City or Iowa City Economic Development Committee
410 E Washington Street
Iowa City IA 52240
Wendy,
I would like to thank you and Bob for your time vested in this great project up to
this point. I am writing today to explain the position our group is taking in regards to the
Townerest Re -Development Project in the City of Iowa City.
At this point our group has a high level of interest in the redevelopment of the
entire area outlined in our attached areial. As you can see this is a rather large parcel
made up of several different property owners of which my client Ernie Stoppelmoor ,is
the largest individual owner on in the project area. Furthermore Ernie has just made a
purchase of another property within this block and has interest in purchasing several
more properties as well.
With that said our group is interested in finding out more about the projects
feasibility and to do that we would need to pay the attached fees. Do to the several
reasons listed below we are requesting that the City of Iowa City fund the initial costs of
this project. (Examples: large parcel, several different property owners, and of
course the potential use of a TIF district, and more to discuss).
Our Group feels that our intentions are warranted to ask the City of Iowa City to
cost share this portion of the project do to the declining conditions of the properties we
are discussing for redevelopment, and the potential use of TIF funds. We feel that it is in
the City of Iowa City's best interest as well as all the property owners in this area to get a
plan to rehab this declining area and we are willing to do the overall plan to help in the
process. Our main point in regards to asking the City to fund this part of the project is the
fact that we do not own the entire site, and we feel this step would greatly be in the best
interest of the City to have a plan for the area do to the potential use of TIF funds.
1 of 2
121
EQUAL HOUSING
OPPORTUNITY
RE ALTO R"
59 2ND STREET
CORALVILLE IA 52241
BUS: (319)-354-8644
TOLL FREE: (800)-728-6819
FAX: (319)-354-865
WEBSITE: www.barkalowhomes.com
Keep in mind our group is heavily vested in this project with more than eight
million dollars of real estate owned in the area and the potential to purchase a lot more of
the block. We have also been in contact with several of the businesses in the area to
discuss what their intentions are and as you can see a lot of them have moved out of the
area and a lot of them have plans to leave. However with our discussions of a potential
re -development of the Towncrest Medical Services Areas several have expressed interest
in staying in this location if we move forward in a timely manner. However, we need to
get a site plan to them of what we can provide to them as well as what the area could look
like moving forward so they stay in the area. That is why we need the site work done
now. That is the big picture for this project keeping what we already have and bringing
,more new businesses and housing to the area.
Moving forward our group brings years of development expertise to the table with
Southgate Development, The Watts Development Group, & Barkalow & Associates
Realtors. We have all been involved in large and small development project in the Iowa
City and surrounding markets, and we have all had great successes. That said my client
and I have decided to bring in both Southgate Development and The Watts Development
Group based on their vast knowledge and their abilities to handle this large of a project.
We also have been advised they are working on a similar project currently for the City of
Coralville.
That said we understand the point that both you and Bob made in our meeting on
Monday about bidding the project out. We have no problem with bidding out the
engineer costs with other firms. However, the City of Coralville project is underway with
Southgate Development & The Watts Development Group and McClure Engineering,
and that is why we have a good team in place that has a really good grasp on what we are
trying to accomplish. Therefore we respectfully request the City of Iowa City to fund the
two attached estimates for a total of $54,000 to get this project moving forward.
Please feel free to call me with any questions that you may have.
X
i racy tiamaiow
Broker/Owner 2 of 2
12Y
EQUAL MOUSM
OPPORTUNITY
R E A
L T O R�
a.
I
March 4- 2008
Ernie Stoppelmoor
Towncrest Investment LP
2401 Towncrest Dr.
Iowa Clty, IA 52245
Re: 'Towncrest Area Redevelopment
Dear Ernie:
At our meeting of February 1, 2008 you requested a proposal to facilitate a long
term redevelopment plan for the "fownci-est area in east Iowa City. Our proposal
is summarized as follows.
Team
Southgate Development Services will coordinate the project and team with The
Watts Development Group, Barkalow and Associates Realtors and McClure
Engineering Company in the first phase of the project.
I will lead the coordination efforts, and our team will include Terri Morrow, Bill
Zimmerman, Jim Walker and Glenn Siders. "]'his group brings many years of
experience In all aspects of real estate development, regulatory matters,
construction, marketing and finance. This will allow us to help you create a
master plan that includes input from all of these areas of expertise.
The Watts Development Group and Barkalow and Associates Realtors will
provide marketing expertise to the planning process. McClure Engineering
Company will provide technical and site plan design support as well as creating,
concept plans and marketing materials. See their separate development services
agreement attached.
SouthGate Development
Services, LLC
SouthGate Property
Management, LLC
SouthGate
Construction. LLC
www.s-gate.com
Services to be performed
I propose that phase 1 of the project result in a site plan of the redeveloped area
and a financial projection of the feasibility redevelopment project. This will be
completed in the following steps:
Step 1. Define the area to be encompassed in the project and gather
information relative to those parcels.
Step 2. Create a vision for the redevelopment plan through a group
planning, session with all parties. Input to be discussed would include
desired density, targeted property types and potential phasing.
Step 3. Creation of initial master plan concepts and inventory of potential
redevelopment issues (infrastructure, zoning etc.).
Step 4. Reach agreement on a preferred master plan for the area.
Step 5. Create a financial feasibility model for the preferred master plan
taking into consideration acquisition, infi-astructure, demolition, and
construction costs.
Step 6. Summarize and reach consensus on the master plan and financial
feasibility study.
Step 7. Create materials for use in marketing to prospective users,
presentation to the City of Iowa City and adjacent land owners regarding
the project to obtain initial reaction to the concept.
The end product will be a site plan for the area and a preliminary financial model.
At this point you could decide to extend the scope to include elevation drawings
and artist renderings of the area.
Timing
1 estimate the timing as follows:
Step 1. Completed within. 2 weeks of execution of the agreement.
Step 2. As soon as possible after Step 1.
Step 3. Target of 3 weeks after meeting in Step 2.
Step 4. As soon as possible after Step 3 is completed.
Step 5. Within two weeks of completion of Step 4.
Step 6. As soon as possible after Step 5 is completed.
Step 7. Within two weeks of completion of Step 6.
Cost
The combined cost of the services of Southgate Development Services and The
Watts Group for the entire scope as outlined above is $25,000 plus out of pocket
costs (printing costs etc.). This does not include the cost of the services of
McCure f;ngineering, or any other outside professionals utilized as a part of the
engagement. McClure's cost proposal is reflected in their Development Services
agreement, a copy of which is included with this letter.
Summary
1 believe this approach to creating a redevelopment plan provides you with the
expertise of professionals from many different areas of expertise, including
significant local marketing expertise.
If you have questions regarding this proposal Teel free to contact me.
Sincerely,
Dennis L. Craven
President,
Southgate Development Services L.L.C.
Xc: Gary Watts
Tracy Barkalow
Adam Bohr
Project No. IAC 328008
Project Name: Towncrest Redevelopment
Project Manager: Adam J. Bohr
DEVELOPMENT SERVICES
Agreement for Engineering Services
This Agreement, made on the 28th day of February 2008, by and between McClure Engineering Company, of North Liberty, Iowa (herein referred to
as "Engineer") and Southgate Development and Watts Development Group. (hereinafter referred to as "Owner") to provide engineering services
for the Project which consists of Master Planning, and Engineering Services as per the terms and conditions on the reverse side of this document
and the following:
1. The Owner shall provide information, which shall set forth the Owner's objectives, schedule, constraints, budget with reasonable contingencies
and other applicable criteria.
2. Soil boring data shall be provided by ❑ The Owner, ❑ The Engineer, ® Not Applicable.
3. The Encineer shall provide the services marked "included" as follows.
ITEM
PHASE 1. DEVELOPMENT MASTER PLAN SERVICES
INCLUDED
NOT
INCLUDED
A. Meetings l Consultation '
1. Initial Meeting with Owner to review project objectives.
®
❑
2. Kickoff meeting with project team to develop ideas and visions j
3. presentation of initial concepts and alternatives
4. meeting with City Staff to receive their ideas and objectives
5. Presentations of conceptual master plan to project team
6. Presentations of final master plan to project team
7. Presentation of final master plan to City staff and officials
Development Master Plan
®
❑
1. Prepare a Base Map of the subject properties.
2. Prepare a Master Plan Including
• Building layout
• Street access and traffic circulation layout
• Parking layouts
• Landscape and other amenity layout
• Differing uses interaction (commercial office, retail, and differing residential densities).
• Infrastructure Considerations,
• Grading and Water Detention Considerations.
• Other accessory or ancillary uses supportive of the principal permitted uses.
• Final Calculations for:
- Land Use
- Street Linear Footage
"
- Building Sizes
- Open Space Requirements
3. Final Deliverable of a marketing quality colored master plan of entire site
®
❑
Preliminary Infrastructure l Opinion of Probable Cost I Phasing
1 Prepare a Preliminary Infrastructure Plan and a Phasing Plan for the Development,
2. Prepare a detailed Opinion of Probable Cost for the Development.
M c C L U R E
EN Gf NEE RI HG COI.f PA NY
NOT
ITEM
INCLUDED
INCLUDED
PHASE 2. DEVELOPMENT DESIGN SERVICES
E. Boundary Survey and Plat
1. Conduct a boundary survey of the subject property in accordance with IA Code Chapter 354
❑
2. Prepare a Plat of Survey of the subject property
❑
Easements shown on Plat
❑
F. Base Mapping
1. Establish U.S.G.S, or Local Datum elevation benchmark and prepare existing topographic survey
®
❑
including the following;
a. Existing ground contours at 2 ft intervals
®
❑
b. Existing streets, Drives, Sidewalks, other Pavement
®
❑
c. Existing utilities visible, from One -Gail locates, or from maps of record
❑
d. Existing trees larger than 6 inches in diameter
®
❑
e. Existing tree lines (boundaries)
i
®
❑
f. Existing rail roads
❑
g. Existing structures
®
❑
h. Other features as visible
®
❑
G. Rezon!ng
1. Prepare required submittals and applications for rezoning of subject property.
❑
2. Attend Development Review Meeting with the City or County.
❑
3. Attend Planning and Zoning meeting of City or County for zoning approval.
❑
4. Attend City Council or County Supervisors meeting for zoning approval.
❑
H. Planned Unit Development
1. Prepare a written Planned Unit Development Document meeting the requirements of the City or
❑
County having jurisdiction.
2. Prepare a visual exhibit of the P.U.D. including street layouts, utility layouts, parcels layouts, and
El
other items as required by City or County.
3. Attend Development Review Meeting with the City or County.
❑
4. Attend Planning and Zoning meeting of City or County for P.U.D. acceptance
El
5. Attend City Council or County Supervisors meeting for P.U.D, acceptance
❑
NOTES, Owner shall deposit with City or County any and all fees for P U.D_ review. Engineer is responsible to owner for compliance with P.U. D.
requirements of jurisdiction and shall be compensated for such. Engineer is not responsible for the ultimate approval of the P U D by City or County
,PreliminaryPlat ____----^---- -----
1. Prepare a Preliminary Plat In accordance with Zoning and Subdivision regulations of the City or
❑
County having jurisdiction.
❑
2. Review Preliminary Plat with Owner prior to submittal
3. Submit required copies to the City or County for review and acceptance
❑
4. Attend Development Review meeting with the City or -County
❑
5. Attend Planning and Zoning meeting of City or County for Preliminary Plat acceptance
❑
6. Attend City Council or County Supervisors meeting for Preliminary Plat acceptance
❑
N TE : Owner shall deposit with City or County any and all fees for P U. D review. Engineer is responsible to Owner for compliance with
Preliminary Plat. requirements of jurisdiction and shall be compensated for such. Engineer is not responsible for the ultimate approval of the
Preliminary Plat by City or County.
❑
J. Fine! Plat
1. Prepare a Final Plat in accordance with Zoning and Subdivision regulations of the City of County
having jurisdiction.
❑
2. Review Final Plat with Owner prior to submittal
❑
3. Submit required copies to the City or County for review and acceptance
4. Attend Development Review meeting with the City or County
❑
5. Attend Planning and Zoning meeting of City or County for Final Plat acceptance
❑
6. Attend City Council or County Supervisors meeting for Preliminary Plat acceptance
❑
7, Recording of the Final Plat with the County Recorders Office
❑
B. Set Lot Corner monuments for Final Plat
❑
NOTES; Owner shall deposit with City or County any and all fees for P.U.D. review. Engineer Is responsible to Owner for compliance with
PreliminaryPlat Requirements of jurisdiction and shall be compensated for such Engineer is not responsible for the ultimate approval of the
Preliminary Plat by City or County.
Owner shall provide the following deeds and certificates,
a Protective Covenants
b Deeds for all streets and other public Right of Way or Parks
c Tax Certificate
d Title Opinion
e Performance Bond
f Maintenance Bond
g Other documents and may be required by City or County
NEC LU RE
ENGINEERING COMPANY
-2-
NOT
ITEM
INCLUDED
INCLUDED
K. Construction Documents (Plans and Specifications)
1. Prepare Construction Documents in accordance with applicable jurisdictional standards, Engineer
❑
shall utilize applicable standard specifications for Public Improvements of jurisdiction.
2. Construction Documents shall include:
a. On -Site Improvements
i. Grading
❑
ii. Erosion Control
❑
iii. Sanitary Sewer
❑
iv. Water Main
❑
v. Storm Sewer
❑
vi. Street Paving
❑
vii. Other
❑
LRI
b. Off -Site Improvements
i. Grading
❑
ii. Erosion Control
❑
�1
iii. Sanitary Sewer
❑
iv. Water Main
❑
v. Storm Sewer
❑
vi. Paving
❑
El
vii. Other
❑
NOTES Modifications or revisions that are considered above and beyond the reasonable aspects of subdivision preparations and approval, or
changes requested by Owner after design in complete, shall be compensated by the Owner to the Engineer by moans of Time and Materials as
identified in the current Rate Schedule
------------- ---
L_ Permits
1. Iowa Department of Transportation Entrance Permits
❑
2. Iowa Department of Transportation Utility Accommodation Permits
❑
3. Iowa Department of Transportation Work in Right -of -Way Permits
❑
4. Iowa Department of Natural Resources Water Supply Construction Permits
❑
5. Iowa Department of Natural Resources Sanitary Sewer Construction Permits
❑
6. NPDES Permits
❑
El
7. Other
— ❑
— _ _ - - -- - ----------- -- --
M. Color Presentation Exhibits
1. Prepare color presentation exhibits of the project for use at public meeting and marketing
❑
a. 24" x 36"
®
❑
b. 1Vx17"
❑
c. 8.5" x 11'
❑
d. Electronic Copy on CD
❑
- 3 -
Mc:CLURE
ENGINEERING COMPANY
f
NOT
ITEM INCLUDED INCLUDED
PHASE 3. DEVELOPMENT CONSRUCTION ADMINISTRATION SERVICES
N. Construction Staking Infrastructure
1. Provide and set construction stakes one time only. Construction stakes that must be reset as a result
❑
of the Contractor's negligence shall be billed to the Contractor by means of time and materials as
identified In the current Hourly Rate Schedule
i
NOTES: i
a Owner shall notify the Engineer a minimum of 48-hours (two working days) in advance of when construction stakes are required
b The Engineer shall provide one time rough grade stakes and final grade stakes to identify the proposed grading features
c Underground utilities shall be staked at 25-foot intervals for the first 100-feet in or out of manholes and other structures, and at
100-foot intervals at other locations.
d All construction staking for pavement to be referenced to the top of the curb as identified in Construction Documents, unless
otherwise agreed upon.
e The Engineer is not responsible for the Contractor's errors or omissions during construction of infrastructure improvements, as a
result of ignoring or misinterpreting construction stakes provided The Contractor is bound by the project Construction
Documents and is ultimately responsible for the accurate representation of these improvoments and substantial compliance with
Construction Documents
O. Construction Contract Administration
1. Consult with the Owner and act as the Owner's representative. Owner's instructions to the Contractor
[]
will be issued through the Engineer who will represent the Owner to the extent provided.
2. Conduct Progress Meetings with the Contractor and Owner.
❑
3. Perform periodic construction field reviews (approximately one per week) or at intervals appropriate to
❑
the various stages of construction to observe the progress of executed work of the Contractor.
NQTE�,' The Engineer shall not be required to make continuous on -site reviews to check the quality or quantity of such work. The Engineer shall
not be responsible for the means, methods, techniques, sequences. or procedures of construction selected by the Contractor, or the safety
precautions and programs incidental to the work of the Contractor The Engineer shall not be responsible for the failure of the Contractor to perform
the work in accordance with the Contract Documents.
4. Review Shop Drawings, the results of tests, Inspections, and other data provided by the Contractor.
❑
5. Issue instructions of the Owner to the Contractor.
❑
6. Review applications for payment and change orders, and determine the amount owing to the
❑
Contractor.
7. Conduct a final field review.
❑
MQ.TteS, The Engineer shall not bo responsible for acts or omissions of any Contractor or Contractor's employees or agents.
P.� Resident On -Site Representative ✓��
1 If requested by the Owner, the Engineer shall designate and provide a full-time Resident On -Site
❑
Representative to conduct more extensive on -site observations than those provided for under C-3.
NOTE5 The duties and responsibilities and limitations on the authority of the Resident On -Site Representative shall be as set forth in a separate
Exhibit 'C'.
Q. Additional Services
1, Additional Plats of Survey
❑
2. Additional Legal Descriptions
3. Additional Easements
El
4. Variance & Rezoning Assistance
❑
5 Presentation Exhibits (Color)
I El
6. Landscape Plans
I ❑
7, Funding Applications
i ❑
B. Other
El
G
y
//-
McCLURE
ENGINEERING COMIFANY
-4-
4. Payment to the Engineer for Master Planning Services will be held until December 1, 2007 or until acceptance of the plan has been received by
the City of Coralville. If acceptance of the master plan has not been received by the City of Coralville by December 1, 2007 this agreement will
need to be addressed again and a minimum of of the payment due will be paid to the Engineer at this time:
Fixed Fee
Phase 'I — Development Concept Services
® A. Master Plan Services
$
29,000
Phase 2 — Development Design Services
❑ E 8oundar�r Survey, and Plat... _... ____.. ._ .. _... ......_
$
® F: Base Mapping _._. _ _... _. _ .
$
3,500
❑ G. Rezoning.___... ...__.. _ ...
$
TBD"
❑ H. Planned Unit Development
$
TBD
❑ !. Preliminary -Plat _
$
TBD
❑ J Final Plat
$
TBD
.... _._ .
❑ K. Construction Documents (Plans and Speafications)
$
TBD
❑ L:._Permits.. _.. _
$
TBD
......
❑ M. Color Presentation Exhibits _.... _ .__ _ ......._
$
Phase 3 — Development Construction Administration Services
. _... ..
❑ N. Construction Staking Infrastructure
$
TBD
❑ O. Construction Contract Administration
_ $
TBD
._ _ . _
❑ P. Resident On -Site Representative
Additional Services
❑ Q Additional Services_ __. _ .._ _..__ _ ..._..... _...... _..._......
$
" TBD = To be determined at a later date if these services are necessary
5. Past due amounts owed shall accrue interest at 1.5% per month from the 30"' day. If the OWNER falls to make monthly payments due the
ENGINEER, the ENGINEER may, after giving (7) days written notice to the OWNER, suspend services under this agreement. (SUBJECT TO
ITEM 4 ABOVE FOR THIS AGREEMENT)
6 THIS AGREEMENT IS SUBJECT TO ALL THE TERMS AND CONDITIONS LISTED ON THE REVERSE SIDE OF THIS PAGE.(EXCEPT
OTHERWISE AGREED IN ITEM 4 ABOVE FOR THIS AGREEMENT)
7 This Agreement represents the entire and integrated agreement between the OWNER and the ENGINEER and supersedes all prior negotiations,
representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both the OWNER
and the ENGINEER.
- Included Not Included -
Exhibit'A' Preliminary Opinion of Probable Project Costs ❑ M
Exhibit 'B' Owner's Responsibilities ❑
Exhibit 'C' Duties, Responsibilities and Limitations of Authority of the Resident Project Representative ❑ Q
OWNER:
Engineer: McClure Engineering Company
By' -------- - -- Signed: — --
Title: Title: Project Manager
M c C L U R E
ENGf"EERiNG COMPANY
5 - "`�
TERiViS AND CONDITIONS
The Engineer shall at all times have access to the site to complete his Work.
As an Additional Service in connection with changes in the scope of the Engineer's work by the Owner, the Engineer shall prepare Drawings,
Specifications and other documentation and data, evaluate Contractor's proposal and provide any other services made necessary by such Change
Orders and Construction Change Directives. The Engineer will be entitled to additional compensation to coordinate such changes.
The Engineer shall be entitled to rely upon the accuracy and completeness of data provided by the Owner and shall not assume liability for such data.
The Owner shall furnish all legal, accounting and insurance counseling services as may be necessary at any time for the Project.
It is recognized that neither the Engineer nor the Owner has control over the cost of labor, materials or equipment, over the Contractor's methods of
determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Engineer cannot and does not warrant or
represent that bids or negotiated prices will not vary from any estimate of Construction Cost or evaluation prepared or agreed to by the Engineer.
The documents prepared by the Engineer for this Project are for use solely with respect to this Project. The Engineer's Drawings, Specifications or
other documents shall not be used by the Owner on other projects or for additions to this Project, except by agreement in writing and with appropriate
compensation to the Engineer.
Claims, disputes or other matters, involving a value less than $200,000.00, in question between the parties to this Agreement arising out of or relating to
this Agreement or breach thereof shall be subject to mediation unless each of the parties mutually agrees otherwise. No mediation arising out of or
relating to this Agreement shall include, by consolidation, joinder or in any other manner, an additional person or entity not a party to this Agreement,
except by written consent containing a specific reference to this Agreement signed by the Owner, Engineer, and any other person or entity sought to
be joined. In no event shall the demand for mediation be made after the date when the institution of legal or equitable proceedings based upon such
claim would be barred by the applicable statute of limitations. The award rendered in the mediation shall be non -binding.
This Agreement may be terminated by either party upon not less than seven days written notice should the other party fail substantially to perform in
accordance with the terms of the Agreement through no fault of the party initiating the termination This Agreement may be terminated by the Owner
upon not less than seven days' written notice to the Engineer in the event that the Project is permanently abandoned.
Failure of the Owner to make payments to the Engineer in accordance with the Agreement shall be considered substantial non-performance and
cause for termination. If the Owner fails to make payment when due the Engineer for services, the Engineer may, upon seven days' written notice to
the Owner, suspend performance of services under this Agreement. Unless payment in full is received by the Engineer within 7 days of the date of the
notice, the suspension shall take effect without further notice. in the event of a suspension of services, the Engineer shall have no liability to the
Owner for delay or damage caused the Owner because of such suspension of services.
In the event of termination not the fault of the Engineer, the Engineer shall be compensated for services performed prior to termination and all
Termination Expenses. Termination Expenses are in addition to compensation for Basic and Additional Services, and include expenses which are
directly attributable to termination.
Unless otherwise provided, the Agreement shall be governed by the law of the principal place of business of the Engineer.
The Owner and the Engineer waive all rights against each other and against the contractors, consultants, agents and employees of the other for
damages, but only to the extent covered by property insurance during construction, except such rights as they may have to the proceeds of such
insurance as set forth in the edition of EDJC Documents, General of the Contract for Construction, current as of the date of this Agreement. The
Owner and Engineer each shall require similar waivers from their contractors, consultants and agents.
The Owner and Engineer, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this
Agreement and to the partners, successors, assigns and legal representatives of such other party with respect to all covenants of this Agreement.
Neither Owner nor Engineer shall assign this Agreement without the written consent of the other.
This Agreement represents the entire and integrated agreement between the Owner and Engineer and supersedes all prior negotiations,
representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and
Engineer. Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either
the Owner or Engineer.
The Engineer is not in the business of making environmental site assessments for purposes of determining the presence of any toxic, hazardous or
other environmental damaging substances. The purpose of this provision is to be certain that Owner is aware of the potential liability if toxic, hazardous
or environmental damaging substances are found on or under the property. Engineer makes no representations regarding an environmental site
assessment, relies upon Owner to have fully investigated the need and/or scope of such assessment and assumes no responsibility for the
determination to make an environmental site assessment on the subject property.
Amounts unpaid 30 days after invoice date shall bear interest from the date payment is due at a rate of 1.5% per month
M c C L U R E
ENGINEERING COMPANY
M E G resuEts. c o m