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HomeMy WebLinkAbout10-13-2008 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Monday, October 13, 2008 8:00 a.m. City Manager's Conference Room City Hall 1. Call to Order 2. Consider approval of the Minutes of the September 9, 2008 Economic Development Committee meeting 3. Discuss and consider a recommendation on options for licensing a public access easement to the Sheraton 4. Consider amended Sheraton Easement Agreement 5. Staff time 6. Committee time 7. Adjournment draft MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 9, 2008 CITY HALL, LOBBY CONFERENCE ROOM, 9:00 A.M. Members Present: Regenia Bailey, Connie Champion, Matt Hayek Staff Present: Wendy Ford, Jeff Davidson Others Present: Miles Shultz, ED Intern, Tim Geshay and Ron Kim (Davidson Hotel Representatives) RECOMMENDATIONS Champion moved to accept the staff's recommendations for the Sheraton Hotel requests as discussed, seconded by Hayek. Motion carried 3-0. CALL MEETING TO ORDER: Chairperson Regenia Bailey called the meeting to order at 9.08 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE AUGUST 5. 2008 ECONOMIC DEVELOPMENT COMMITTEE MEETING: Hayek moved to approve the minutes of the August 5, 2008 meeting as presented; seconded by Bailey. Champion abstained as she was not present at this meeting. Motion carried 2-0, with Champion abstaining from the vote. STAFF TIME: Ford introduced the Intern for the Economic Development Division, Miles Shultz. She added that he has been instrumental in helping move the plans for the Towncrest Urban Renewal Plan along. They have chosen the place to have their community meetings, and plan to invite residents and business owners in the Towncrest area to this meeting on October 1st. Ford added that Bob Miklo and/or Karen Howard will be working in partnership with Economic Development in presenting a program asking for input in this area and what the residents and businesses would like to see in their area as far as change. Davidson reminded the Committee that some time ago they had directed staff to take a slightly more aggressive position with the southeast industrial area, and they are doing just this. He added that nothing specific has occurred yet, but they are in negotiations at present. He hopes to have more specific details soon for the Committee. Ford added that ICAD has hosted three or four wind energy companies' visits and that those companies would be a good fit for the southeast industrial area. Ford noted that Members have a memo in their packet recapping what happened at the May meeting when the Sheraton Hotel request was first reviewed. At that time the Hotel requested 80 parking spaces at market rate. They also asked that the City vacate the public easement that goes through the interior of the hotel, and to provide some funding for the enhancements to the Dubuque Street walkway on the exterior easement there. Ford added that the parking spaces were approved at that time, and that the Committee stated it would entertain other options for things that would make mutually beneficial remodeling to the hotel possible. Ford stated that the Sheraton Hotel representatives have been working diligently on alternatives, especially since the Committee stated it wanted to maintain the public easement through the hotel. The new request asks for the ability to control the vestibule — the walk through portion of the interior of the hotel — Economic Development Committee Meeting September 9, 2008 for public safety reasons. This will alleviate the congregation of people in this area, especially late night and especially during the weekend and guests feeling unsafe in these large congregations of people. The Hotel believes these congregations of people should not encumber their customers. The Hotel is asking to be able to control this vestibule, and to lock this area between 10:00 P.M. and 6:00 A.M. In exchange for this request, the Hotel would like to have the share in the costs of enhancing the exterior easement and have it become the nighttime access from 10:00 or 11:00 P.M. to 6:00 A.M., instead of the interior passageway. The Hotel also is asking for a 50/50 cost sharing of the enhancements to the exterior walkway. Ron Kim, from the Sheraton, spoke to the Committee, stating that the issues are described in the memo. He added that they would like to create a safer environment in the vestibule area. Ford added that third element of the Hotel's request is that they would also like to shrink the existing interior easement to a width that is consistent with its narrowest point. This would enable the Hotel to make the desired changes to their lobby. Ford noted that staff looked at these requests from many angles, and because of the public safety aspects, they are recommending the vestibule area be locked from 11:00 P.M. to 6:00 A.M. This lock -off would be contingent upon the enhancements proposed to the exterior walkway. Members then discussed their feelings about having this area locked during the nighttime. Davidson then asked the Hotel representatives about their time frame for these projects. Ron Kim explained how their timeline will work, and how Davidson Hotels manages these types of projects. He added that the exterior project, which will be in conjunction with the City's design requirements, will take more time to conceptualize. He said they would prefer to move ahead with the interior work first, rather than wait for the joint project on the exterior to come together. Champion stated that she believes they have a good plan, but she questioned how the Hotel plans to discourage groups of people in this area when it is open during the daytime. Thom Geshay noted, among other things, they plan on moving the ATM from this area. Hayek asked about the request of reducing the public access easement from 25 feet to 12, adding that on the plans presented it doesn't appear that they are accomplishing that. The hotel representatives further explained how they came up with their current proposal, and what they hope to achieve with these projects. Discussion ensued, with staff further explaining the City's design aspirations for the exterior area. Hayek asked for further clarification of the plans being presented, noting that he was at first concerned by the size reduction in the interior walkway. Davidson explained that the City uses a minimum of 12 feet when it is designing downtown walkways. Sidewalks and walkways are typically 16 feet, but in places, can be reduced to 12 feet. Bailey asked if the others are comfortable with this, and Champion stated that she has no problem with it. The discussion turned to the need for glass walls in this walkway which will help alleviate a "tunnel" feel of this area. They plan to have a more open area in their lobby, and Geshay further explained what they envision. Hayek noted that he still has concerns about the 12 foot width. He said would rather see 14 to 16 feet, noting concerns about the sense of flow through this area, but that he would defer to staff's recommendation. Bailey asked for a comparable area in the downtown, and Davidson noted the block of Washington Street where the Englert is, and the various sidewalk cafes and trees, as having a 12-foot pedestrian walkway. Bailey asked if the Committee Members were okay with this request, and both Hayek and Champion stated they were. Next, the cost sharing of the exterior enhancements was discussed. Champion asked if they could use TIF for something like this. Davidson asked that the Committee let staff take a look at their options. The Committee also agreed to the 11:00 P.M. lockup time for the walkway. The Members felt the 11:00 was better than the 10:00, due to patrons being at various events downtown until around 10:00 or 10:30 P.M. Davidson asked that Members look at the current recommendation by staff and let him know if they want to add anything to this. Otherwise, this proposal will go to the full Council Economic Development Committee Meeting September 9, 2008 for their review. Champion moved to accept the staff's recommendations as discussed, seconded by Hayek. Motion carried 3-0. Ron Kim stated that they are very pleased to have some local involvement in this project. He added that access is very important here, and he noted that they have vandalism at their location time to time, but they especially have parking issues. He stated that he believes these changes will be very positive. Ford stated that she will plan to have this recommendation ready for Council's review at their September 22"d meeting. Davidson suggested the hotel reps have a brief presentation for this work session with City Council. Champion asked how they plan to get public input on this issue. Davidson stated that he will check with the City Attorney's office, but it may be that they need a hearing on the formal amendment of this easement agreement. Bailey noted that the downtown merchants will be the primary concern in getting the word out. COMMITTEE TIME: None. ADJOURNMENT: Hayek moved to adjourn the meeting at 9:45 A.M., seconded by Champion. Economic Development Committee Meeting September 9, 2008 Council Economic Development Committee ATTENDANCE RECORD 2008 TERM Lv w w gt Q Q oo co NAME EXP. G 8 M -4 NDo o �' `D Regenia 01/02/10 X X x X X X X X X Bailey Matt 01102110 X X X X X X X X X Hayek Connie 01/02/10 X X x x X X X O/E X Champion Key: X = Present O = Absent O/E = Absent/Excused CITY OF IOWA CITY MEMORANDUM Date: October 10, 2008 To: Council Economic Development Committee From: Wendy Ford Ike Re: Sheraton Easement A eement At your meeting on Sept. 9, you recommended by a vote of 3-0 the approval of the Sheraton's request to reduce the interior easement through the hotel which would allow them to expand the lobby area. In exchange for that, they would share in the costs of enhancing the exterior easement and would be allowed to lock off the interior easement during the night time hours of 11 pm to 6 am. The attached draft agreement was presented at the City Council meeting on Oct. 6, 2008 and needed minor revisions to be satisfactory to the City Attorney and the Davidson Hotel Attorney. At the meeting, Matt Hayek raised the question of whether the City might instead employ a license agreement for the interior public easement, as opposed to a partial vacation. At our meeting on Monday, Oct. 13, First Assistant City Attorney, Sarah Holecek will lead a discussion of licensing. We will discuss reworking an agreement to include licensing and determine whether it would be negotiable with the hotel. Hotel representatives will be present via conference call. Prep'd by: Sarah E. Holecek, First Asst. City Atty., 410 E. Washington St., Iowa City, IA 52240; 356-5030 AGREEMENT FOR WALKWAY IMPROVEMENTS AND FUTURE RELEASE OF PEDESTRIAN ACCESS EASEMENT This Agreement ("Agreement") is entered into between RBD Iowa City LLC, a Delaware limited liability company, (hereinafter "RBD" and/or "Owner") and the City of Iowa City, an Iowa municipal corporation ("City"). WHEREAS, RBD is the current owner of the Sheraton Hotel located at 210 Dubuque Street in downtown Iowa City, Iowa (the "Hotel"); and WHEREAS, in order to provide public pedestrian access between the Pedestrian Mall and Dubuque Street, there exists a certain Pedestrian Access Easement Agreement dated December 12, 1983, which is recorded at Book 726, Page 174, in the Recorder's Office of Johnson County, Iowa (the "Easement Agreement"), that grants the City (i) an interior pedestrian access easement through the interior of the Hotel that is approximately twenty-five feet (25') wide and is open twenty-four hours a day, seven days a week (24/7) (the "Interior Easement") and (ii) an exterior public pedestrian access easement along the western wall of the Hotel that is approximately twelve and one-half feet (125) wide and is open twenty-four hours a day, seven days a week (24/7) (the "Exterior Easement"); and WHEREAS, RBD desires to make certain improvements to the Hotel, including but not limited to the expansion and enhancement of the lobby and the improvement of security and climate control (collectively, the "Improvements"), and to that end, requests that the City agree to amend the Easement Agreement to reduce the width of the Interior Easement from its present width to approximately twelve feet (12') and allow the Hotel to close access through the Interior Easement between the hours of 11:00 p.m. and 6:00 a.m.; and WHEREAS, in exchange for the City's agreement to amend the Easement Agreement as set forth in this Agreement, Owner will make the Improvements to the Hotel, including but not limited to the area that is released from the Interior Easement, and participate with the City in the design of improvements to the Exterior Easement and fund along with the City a portion of the cost of making such improvements to the Exterior Easement; and WHEREAS, the parties to this Agreement desire to memorialize their agreement regarding their respective responsibilities and duties for the design and construction of the improvements to the Exterior Easement and the amendment of the Easement Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, CONDITIONS AND WARRANTIES CONTAINED HEREIN, IT IS AGREED AS FOLLOWS: 1. Partial Release of Interior Easement. Upon completion of the improvements to the Exterior Easement as set forth in Section 3 hereof, the City will permanently release a portion of the Interior Easement thereby reducing the width of the remaining easement area to approximately twelve feet (12') as depicted on Exhibit "A", attached hereto and incorporated herein (the "Amended Interior Easement"). In connection with the foregoing, the City will also release Owner's obligation to provide pedestrian access through the Amended Interior Easement between the hours of 11 p.m. and 6 a.m. seven days a week. The City will retain all other rights and interest in the Amended Interior Easement as per the terms of the Interior Easement as set forth in the Easement Agreement. 2. Authority to Temporarily Occupy Interior Easement Prior to Release: Upon the execution of this Agreement by the parties, Owner may temporarily utilize the area to be released from the Interior Easement for the purposes of commencing the Improvements; provided, however, that in the event improvements to the Exterior Easement are not completed in accordance with Section 3 herein, the City shall have the right to enforce all of its rights to the Interior Easement as provided in the Easement Agreement, including, but not limited to, the right to require Owner to remove any and all improvements within the Interior Easement that, in the City's sole determination, interfere with those rights, and the City may reoccupy the portion of the Interior Easement temporarily occupied by Owner. Should the City exercise its rights under the Easement Agreement by reason of Owner's failure to complete the improvements to the Exterior Easement in accordance with Section 3, the costs of removing any and all improvements within the Interior Easement shall be the sole responsibility of and borne by Owner. 3. Design, Construction and Cost Sharing of Improvements to and Public Art for Exterior Easement. The parties shall reasonably and in good faith cooperate, participate and agree to the design and budget for the improvements to the Exterior Easement, which improvements shall include lighting, architectural features to emphasize the walkway, way -finding signage and public art (the "Exterior Easement Improvements"), within ninety (90) days from the date Owner first submits proposed design plans and a budget for said improvements. The final Exterior Easement Improvements plan shall be approved by the City Council as well as any other City agency whose approval may be required prior to the issuance of a building permit and/or commencement of construction of 2 the Exterior Easement Improvements. The City Counsil shall approve the final plans and specifications for said Exterior Easement Improvements and advertise said plans for public bid as required by Iowa Code Chapter 26. The City Manager, or designee, shall approve all change orders, if necessary, which approval shall not be unreasonably withheld or delayed. The parties agree to each pay fifty percent (50%) of the costs of the final approved Exterior Easement Improvements plans and specificiations, including but not limited to design costs, up to a maximum contribution of One Hundred Fifty Thousand Dollars ($150,000) for each party. The parties further agree to cooperate together in good faith to complete the Exterior Easement Improvements as soon as is reasonably possible following the date of this Agreement but in no event later than eighteen (18) months following the date hereof (the "Outside Completion Date"), subject only to weather delays or other conditions or events not reasonably foreseen or within the control of the parties that may cause the date of completion to be extended beyond the Outside Completion Date. Owner shall have the right in its discretion to complete the Exterior Easement Improvements in accordance with the final approved plans, specificiations and budget and upon completion thereof, the City shall permanently release the portion of the Interior Easement as described in Section 1 of this Agreement. 4. Miscellaneous. A. The provisions of this Agreement shall inure to the benefit of and bind the successors and assigns of the respective parties hereto. B. Nothing contained in this Agreement shall be construed as creating or granting rights to any third party which is not a signatory to this Agreement. C. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous written or oral communications, understandings and agreements with respect to the subject matter hereof. It is expressly understood and agreed that this Agreement may not be altered, amended, modified or otherwise changed in any respect except in writing duly executed by authorized representatives of each of the parties. D. This Agreement shall be governed by the laws of the State of Iowa. Signatures on the following page. 3 Dated this _ day of October 2008. RBD IOWA CITY LLC. a Delaware limited liability company By: RBD IOWA CITY HOLDINGS LLC, a Delaware limited liability company, its Sole Member By: DIG Iowa City LLC, a Delaware limited liability company, its Manager 10 John A. Belden, President CITY OF IOWA CITY, IOWA Bv: Regenia D. Bailey, Mayor Attest: Marian K. Karr, City Clerk CITY ACKNOWLEDGEMENT STATE OF IOWA ) )ss: JOHNSON COUNTY ) On this day of October, 2008, before me, the undersigned, a Notary Public in and for the above -named county and state, personally appeared Regenia D. Bailey and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, for the City of Iowa City, Iowa, executing the within and foregoing instrument; that the seal attached thereto is the seal of said corporation by authority of its City Council; and that the said Mayor and City Clerk acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for the State of Iowa 0 RBD IOWA CITY LLC. ACKNOWLEDGEMENT STATE OF TENNESSEE ) )ss: COUNTY OF SHELBY ) On this day of October, 2008, before me, the undersigned, a Notary Public in and for the above -named county and state, personally appeared John A. Belden, to me personally known, who being by me duly sworn, did say that he is the President of RBD IOWA CITY LLC., executing the within and foregoing instrument by authority of RBD IOWA CITY LLC and that the said John A. Belden acknowledged the execution of said instrument to be the voluntary act and deed of said limited liability company, by it and by him voluntarily executed. Notary Public in and for the State of Tennessee 5