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Home My WebLink About12-21-2010 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Tuesday, December 21, 2010 8:00 a.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of the November 8, 2010 Economic Development Committee meeting minutes 3. Confirmation of the City Manager's letter regarding the PC location decision 4. Discuss administrative approval of Economic Development Opportunity Fund requests 5. CDBG Economic Development fund report 6. Staff time 7. Committee time 8. Adjournment draft MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 8, 2010 LOBBY CONFERENCE ROOM, 8:00 A.M. Members Present: Regenia Bailey, Matt Hayek, Susan Mims Staff Present: Wendy Ford, Tracy Hightshoe Others Present: Gianluca Baroncini RECOMMENDATIONS TO COUNCIL: Hayek moved to recommend the request for a CDBG Economic Development loan for Baroncini as discussed. Mims seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 8:02 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE SEPTEMBER 22, 2010, ECONOMIC DEVELOPMENT COMMITTEE MEETING: Hayek moved to accept the September 22, 2010, meeting minutes as submitted. Bailey seconded the motion. Motion carried 3-0. CONSIDER A REQUEST FOR CDBG ECONOMIC DEVELOPMENT LOAN FOR BARONCINI: Tracy Hightshoe addressed the Members regarding this request for CDBG Economic Development funds. She noted that Gianluca Baroncini is planning to open an Italian restaurant, Baroncini, which will be a `fine dining' establishment. Hightshoe noted that the applicant has experience as an Italian chef, having graduated from the Italian National Culinary Institute in Italy. She stated that the staff recommendation is to extend a CDBG loan for $35,000 for this project, and she briefly explained staff's reasoning for this. This would be a 7 year loan at 1 % interest, contingent upon the applicant securing the private loans that he will need. The applicant spoke briefly, stating that he believes that there is an opportunity for this type of restaurant in Iowa City. He added that dinner entrees will be around $25, and lunches around $12. He shared some of the demographic information that he had researched, noting that this area is prime for another high quality sit-down restaurant. Members then reviewed the request, noting that they believe this is a good request with a strong business plan. Hayek did, however, ask that Hightshoe check on the sprinkler issue that they discussed. Economic Development Committee Meeting November 8, 2010 Hayek moved to recommend the request for a CDBG Economic Development loan for Baroncini as discussed. Mims seconded the motion. Motion carried 3-0. STAFF TIME: Ford spoke to Members about the Economic Development budget line item for $200,000. She noted that this line is funded with $200,000 every other year. She then reminded them of how this was split in the FY2010 budget such that $50,000 went to both the City of Literature for three years and the Englert for one-year at a time, renewable for three. In the FY12 budget, Ford noted that they will be at the third year of those two $50,000 allotments. FY13 will be the next budget cycle then with $200,000 funded again, and at which point, the Council will likely be asked to consider continued funding of the City of Literature and the Englert Theater. Regarding CDBG funding, Hightshoe briefly noted a current balance approximately $150,000 after the above loan is granted. They hope to use some of the remainder in the Towncrest area. Bailey then asked about a possible update on previously funded projects. Ford noted that staff will provide that report at the next Economic Development Committee meeting.. COMMITTEE TIME: Hayek briefly talked about the business incubator project, asking if these funds could go for that. Members agreed that they need more information on this. ADJOURNMENT: Hayek moved to adjourn the meeting at 8:40 A.M. Mims seconded the motion. Motion carried 3-0. Economic Development Committee Meeting November 8, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM w w c`n M w (0 -� NAME EXP. No N oN N Cn Cn1 3 W N N co Regenia 01/02/11 X X X X X X X X X Bailey Matt 01/02/11 X X X X X X X X X Hayek Susan 01/02/11 X X X X x x x O/E X Mims Key: X = Present O = Absent O/E = Absent/Excused December 14, 2010 Marc Moen The Moen Group 105 E. College Street Iowa City, IA 52240 Re: Iowa City Press -Citizen location decision Dear Marc: I r I ;Np IR all CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org. This letter will serve to confirm the City of Iowa City's commitment to providing parking associated with the location of the Iowa City Press -Citizen in the Brewery Square Building. Our agreement will be as follows: The City agrees to make available 10 monthly permits in the Market Street lot and 20 monthly permits in Tower Place. These permits will be made available at the market rate. 2. As an economic development incentive, the City agrees to provide a parking subsidy of $7,200 per year for the two-year period beginning when the Press -Citizen begins operation at Brewery Square. 3. The above proposal is conditioned on the Press -Citizen maintaining a minimum of 40 jobs which are based at the Brewery Square location at an annual minimum salary of $35,000 per year, which will be maintained for the two-year period of the economic development incentive. These employment and wage figures have been provided to us by the Press -Citizen. This commitment will be confirmed by the City Council on January 10. We are delighted to be able to work with the Moen Group and the Iowa City Press -Citizen to finalize this arrangement. We are excited to have the Press -Citizen moving to downtown Iowa City. Feel free to contact me if I can be of further assistance. cerely, To arkus City Manager cc: City Council Eleanor Dilkes Jeff Davidson Wendy Ford mgr/Itrs/moen 12-14-10. doc CITY OF I O WA CITY MEMORANDUM Date: December 17, 2010 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Item #4: Discuss administrative approval of Economic Development Opportunity fund requests This agenda item is for staff to determine your desire to discuss giving some level of authority for the City Manager to approve disbursements from the Economic Development Opportunity funds. Doing so would give us the ability to respond in a timely manner to appropriate Economic Development opportunities. If you are willing to entertain the notion of granting this authority, staff will prepare a recommendation for your next Economic Development Committee meeting. r �•�,®4 CITY OF IOWA CITY -Tl MEMORANDUM Date: December 17, 2010 To: City Council Economic Development Committee From: Tracy Hightshoe, Community Development Planner Re: CDBG Economic Development Fund The CDBG Economic Development Fund was created to stimulate private sector investment that results in the creation of permanent, private sector jobs with living wages for low -to - moderate income persons in Iowa City. The Economic Development Fund provides assistance through low interest loans with interest rates ranging from 0 to 4% and repayment terms set at 5 or 7 years. The loans approved are typically for permanent working capital and often in conjunction with a private lender who provides a majority of the funds needed for the business to open or expand. All CDBG economic development activities must meet the national objective of benefiting low to moderate income persons. The program rule requires that 51 % of the jobs created or retained must be held or made available to low -to -moderate income persons based on family size or the business must qualify as a micro -enterprise. A micro -enterprise is a commercial enterprise that has five or fewer employees, one or more whom owns the enterprise. At least 51 % of the employees and owners of a micro -enterprise business must be low to moderate income. The Council has funded a set -aside for economic development activities since July 1, 2002. To date, the Council has allocated $934,134 to CDBG economic development eligible activities. As of today, there is a fund balance of $147,329 available for eligible businesses. Since 2002, the City has received 40 applications and has approved funding for 17 businesses and three non-profit entities with CDBG Economic Development Funds. Of the 17 approved businesses, two went out of business and one business ended the agreement by convenience before receiving any funds. Five of the businesses qualified as a micro -enterprise under HUD's definition. Currently, there are 11 businesses under a repayment schedule based on the CDBG agreement. Loan repayments from January 1 through December 31, 2009, totaled $27,997. Current loan repayments, including interest, from January 1 through October 30, 2010 total $21,288. The eleven businesses with balances include: Discerning Eye, La Reyna Inc., Nile Valley Restaurant, Gluten Evolution Inc., The Wedge Pizzeria, Home Ec. Workshop, Alfie's Beauty Supply, Textures Salon, Corridor Drywall LLC, the Paper Nest and Baroncini. Since 2002, the City's CDBG Economic Development Fund has created and/or retained 352 jobs, provided employment training to 20 persons and assisted 5 micro -enterprises. If you have any questions about the economic development fund please contact me at 356.5244. v m co m aS m c c V� d � C N N N N U/ S• N N VI CL f` F ca m m m m c=: N C « In a 0 N O LO .- N �Waa O v o V)v00 « C N LO � W r- N M M (O tD I m dLL M 'SF_ U w _A 0) v v c v v a v v rn rn rn rn rn. 0 R rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn rn V M Cl) M_ Cl)_ M M O 00 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N p> C - .- I- r M M M M M M M cl M V M M M M Cl M M M M M M M M M M M M M M M M cM w m V d' `7 V d �t O (n r N f� h N 00 CO O CO W 00 CO M ch Kl M W ap CO M M M W M o0 CO M Cl) M N N f� M Cl) M M c- 1- t` V M O M M a7 N N N N N N N M M M pp N� O O O N CD N N D1 O O W W '7 m m o) 0) p) co 00 00 00 00 h Il r LO N LO LO LO N� N V a V V' M M M M M M N N N N .� w w w to w w w w w w w w w w w w w w w w w w w w w w w to w w w w w w w w w w w w w @ C OQ R E ° O 0 0 In a 0 O O O Opp O O 0 0 O O O O O O Y 0 w N n N w n W. 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NnLq -0 omm ooY O m occ«Qvu�m mpo°c caLo c N _ oa J N m y N aQ LL -0� Nm CC •O ML wN xLLM m UN xa 2N,mc:cc'D°'>pWo . (j c o od m o 9 E 'E a�to0)Ux7QLLWp W"�maQyOaailJ aU RSVP Economic Forecast Trends Luncheon Page 1 of 2 BusinessJourrial Economic Forecast Trends Luncheon When: Wednesday January 12, 2011 from 11:30 AM to 1:15 PM CST Register Today Add to my calendar Where: Cedar Rapids Marriott 1200 Collins Road NE Cedar Rapids, IA 52402 n 0 low Fw �i r-- Driving Directions Dear Jeff, We would like to invite you to attend the Corridor Business Journal's Economic Forecast Luncheon on Wednesday, January 12, 2011 at the Cedar Rapids Marriott. The Economic Forecast Luncheon offers insight on where the economy is headed in 2011 from keynote speaker, Larry Zimpleman, CEO of Principal Financial Group. Corridor business leaders will also engage in an in-depth panel discussion moderated by Jack Evans, President of The Hall- Perrine Foundation. Panelists include: Barry Boyer - CEO/President, Van Meter Industrial Inc. Mike Gerdin - President, Heartland Express Sally Mason - President, The University of Iowa Andy Ockenfels - President, City Carton Recycling Kyle Skogman - President, Skogman Companies Event includes a networking lunch. Registration Fee: $40 per person Table of Ten: $400 per table Click Here to Register Presenting Sponsor Bankers -1 Wt If you have any further questions about the event or if you have difficulty registering online, please contact Shelby Baker at shelbv(cDcorridorbiznews.com or 319-887-2251 x302. We look forward to seeing you at the event. Sincerely, John Lohman http://campaign.r20.constantcontact.com/render?llr=kbvxradab&v=001 KvOA9nYSxsgRNDwap... 12/17/2010