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Home My WebLink About2012-06-19 ResolutionA/1 -(_q �C L�� Prepared by: Marian K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5043 RESOLUTION NO. 12 -290 RESOLUTION TO ISSUE DANCING PERMIT BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing Permit as provided by law is hereby granted to the following named person and at the following described locations upon his/her filing an application, having endorsed thereon the certificates of the proper city officials as to having complied with all regulations and ordinances, having a valid beer, liquor, or wine license /permit, to wit: Fraternal Order of Eagles #695 — 225 Highway 1 West The Summit Restaurant & Bar — 10 S. Clinton Street Passed and approved this 19th day of June , 20 12 6�. MAYOR Approved by ATTEST: CIT LERK City Attorney's Office It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton 3c(11) wmwwm . Prepared by: Marian K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5043 RESOLUTION NO. 12 -291 RESOLUTION TO ISSUE CIGARETTE PERMITS WHEREAS, the following firms and persons have made application and paid the mulct tax required by law for the sale of cigarettes, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, THAT: the applications be granted and the City Clerk is hereby directed to issue a permit to the following named persons and firms to sell cigarettes: SEE ATTACHMENT Passed and approved this 19 th day of June , 20 12 MAYOR ATTEST: 1('. ezt/ CIT LERK Approved by City Attorney's Office It was moved by Aims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: _x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton e\31 S�,D CIGARETTE PERMITS PRINTED : 11— MAY -12 PAGE: 1 DOING BUSINESS AS LICENSE # STICKER # APPLICANTS NAME PURPOSE BIG KMART 85 00140 00121 C K —MART CORPORATION SECTOR INC Q g� S GENERAL STORE #2761 \), D4BUQu� Sr SSEYS 07 00073 00122 C MARKETING COMPANY S /PHARMACY #8539 C—QkX'flN $T 06 00074 00128 C CA ' S GENERAL STORE #2781 c�,Lww �i�EE << ��- 07 00074 00123 C SEY'S MARKETING COMPANY C /PHARMACY #8547 MWSCrMAt -AVE, 06 00075 ,C ARETTE OUTLET ##18 05 00007 00124 C CIGARETTE OUTLET INC D SHORT STOP CORPORATION 86 00022 01210 C \C CAR THE 08 00070 00125 C �UZST INC �C ENIENCE STORE THE 08 00068 00126 C ELLY STUCKER 01260 C C ENTERPRISES CREEKSIDE MARKET 03 00005 00127 C SECTOR INC FORMERLY: T & M MINI MART S /PHARMACY #8539 C—QkX'flN $T 06 00074 00128 C IOWA CVS PHARMACY LLC C /PHARMACY #8547 MWSCrMAt -AVE, 06 00075 00129 C OWA CVS PHARMACY LLC D SHORT STOP CORPORATION 86 00022 01210 C IIEEL J GLASGOW D MER WOOD 85 00092 01260 C C ENTERPRISES /DI MART #1 87 00013 01211 C MART PROPERTIES INC DE MART #2 87 00018 01212 C LI T PROPERTIES INC DE MART #3 98 00014 01213 C LIMART PROPERTIES INC I MART #5 99 00006 01214 C LIMART PROPERTIES INC iD THE 00 00017 01215 C OUTHERN DISCOUNT DEN CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 2 DOING BUSINESS AS LICENSE # STICKER # APPLICANTS NAME PURPOSE D LIN UNDERGROUND THE 93 00001 01216 V UBLIN UNDERGROUND INC EKAM CHICAGO DOG 12 00063 00063 C EKAM LLC HOOKAH PARLOR / TOBACCO STORE E PASO THE MEXICAN STORE 05 00001 01217 C P 0 TIENDA Y TAQUERIA INC �F EWAY STORES #034 03 00007 01218 C Y STORES INC STORES #950 95 00006 01219 C STORES INC FAS BREAK 11 00058 01258 C F OIL COMPANY F E STARS FOOD MART 10 00057 01220 C IVE STARS FOOD MART �2Y'S #1 08 00074 01221 C !lB BAUER INC G Y'S #4 08 00075 01222 C ��L AUER INC itA LA HOOKAH C HA IG DRUG STORE #10 98 00001 01223 C TIG DRUG COMPANY INC EE DRUGSTORE 85 00013 01224 C Y -VEE INC VVEE EE FOOD STORE #1 85 00009 01225 C INC XVEE FOOD STORE #2 85 00010 01226 C Y -VEE INC VEE FOOD STORE #3 85 00011 01227 C HY VEE INC e-VEE GAS ( #1) 03 00004 01228 C y-VEE INC i PIT STOP 08 00064 01229 C C PIT STOP LLC CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 3 DOING BUSINESS AS LICENSE # STICKER # APPLICANTS NAME PURPOSE IC LYS 07 00070 01230 C B GAL INC J 'S PLACE 08 00072 01231 C J 'S OF IOWA CITY INC C OH GROCERY, INC. 85 00054 01232 C 'S GROCERY INC 9 KO EXION THE 08 00069 01233 C OKERS UNLIMITED & GO #422 85 00025 01234 C KUM & GO LC MKT & GO #51 01 01087 01235 C l UM & GO LC M& GO #52 01 01088 01236 C um""'&GO LC SKT & GO #53 01 01089 01237 C ( UM & GO LC L M MIGHTY SHOP, INC. 85 00045 01238 C &//M MIGHTY SHOP INC ,I,,�iQUOR DOWNTOWN 07 00072 01239 C VVVJASON CAYLOR L ZO R HOUSE LTD 03 00008 01240 C IQUOR HOUSE LTD RTH DODGE EXPRESS O1 01090 01241 C D EXPRESS INC NO H DODGE SINCLAIR 10 00056 01242 C RT H H DODGE INC 0 THE GO CONVENIENCE STORES 00 00002 01243 C THE GO CONVENIENCE STORES INC "' P OPpy 06 00070 01245 C AKSHI H MEARS ZZILLC EXPRESS 07 00075 01246 C CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 4 DOING BUSINESS AS LICENSE $# STICKER # APPLICANTS NAME PURPOSE R S' NORTHSIDE SERVICE 05 00005 01247 C USS'NORTHSIDE SEVICE KW 09 00060 01248 C LLC BLVD HAWKEYE CONVENIENCE STORE X 00 00007 01249 C WTT KEYE OIL CO INC ,SHSIDE LIQUOR & TOBACCO 12 00064 00064 C l OUTHSIDE SPIRITS LLC S�]�'iJRBAN BP AMOCO 97 00007 012 5 0 C ✓SUBURBAN INVESTORS LC It SU BAN BP AMOCO KEOKUK STREET 98 00012 01251 C URBAN INVESTORS, L.C. T IN ZONE 11 00057 01252 C HE IN ZONE CORPORATION T ACCO BOWL 91 00009 01253 C ISSISSIPPI VALLEY TOBACCO CCO OUTLET PLUS #537 97 00008 01254 C jrI'K TRIP INC V'g MOUS GLASS WORKS 11 00059 01259 C VERIC M & NICK VANCE WA EEENS #5077 85 00029 01255 C LGRREEN COMPANY �W�MART SUPERCENTER #1721 92 00012 01256 C t AL -MART STORES INC �Z IES TOBACCO OUTLET 11 00060 01257 C OMBIES TOBACCO OUTLET LLC TOTAL CIGARETTE PERMITS: 61 CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 1 DOING BUSINESS AS LICENSE STICKER # APPLICANTS NAME PURPOSE BIG KMAR 85 0140 00121 C K -MART CO ORATION C Y'S GENE STORE #2761 7 00073 00122 C SEY'S MARKE NG COMPANY WCA '. S GENERAL TORE #2781 t�rzww C�EIZ fie• 07 00074 00123 C EY'S MARKETING COMPANY ,CARETTE OUTLET ##1 05 00007 00124 C CIGARETTE OUTLET INC THE 08 00070 00125 C SCAR UZSTER INC CONVENIENCE STORE THE 08 00068 00126 C KELLY STUCKER CREEKSIDE MARKET 03 00005 00127 C SECTOR INC FORMERLY: T & M MINI MART S /PHARMACY #8539 C;L(NT0AJ Sr, 06 00074 00128 C IOWA CVS PHARMACY LLC C /PHARMACY #8547 MuSCr�rIME 0F, 06 00075 00129 C OWA CVS PHARMACY LLC D SHORT STOP CORPORAT N 86 00022 01210 C IIEEL J GLASGOW D MER WOOD 00092 01260 C C ENTERPRISES D LI MART #1 87 0 13 01211 C ELIMART PROPERTI INC f2zin, ART #2 87 00018 01212 C T PR OPE IES INC #3 98 00014 01213 C T P PERTIES INC LE/LImAR MAR #5 99 00006 01 4 C PROPERTIES INC �ID T E 00 00017 01215 C OUTHERN DISCOUNT DEN CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 2 DOING BU INESS AS LICENSE # STICKER # APPLICANT NAME PURPOSE D LIN UNDERGRO D THE 9 00001 01216 V ' UBLIN UNDERGRO INC EKAM CHICAGO DOG 12 00063 00063 C EKAM LLC HOOKAH PARLOR / TOBAC O STORE E PASO THE MEXICAN STO 05 00001 01217 C P 0 TIENDA Y TAQUERIA INC �F EWAY STORES #034 03 00007 01218 C INC VSTORES STORES #950 95 00006 01219 C STORES INC FAS BREAK 11 00058 01258 C F OIL COMPANY F E STARS FOOD MART 10 00057 01220 C IVE STARS FOOD MART .AGY'S #1 08 00074 01221 C B BAUER INC za��YAIUER S #4 08 00075 01222 C INC ILA H tA LA HOOKAH 0 A IG DRUG STORE #10 98 00001 01223 C RTIG DRUG COMPANY INC EE DRUGSTORE 8 00013 01224 C Y -VEE INC Hy�TEE FOOD STORE 1 85 0 09 01225 C I Y -VEE INC VEE FOOD ST E #2 85 0001 01226 C Y -VEE INC EE FOOD TORE #3 85 00011 01227 C HY VEE INC e-VEE G S ( #1) 03 00004 1228 C y-VEE C qImo• IT STOP 08 00064 012 9 C C PIT STOP LLC CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 3 DOING BUSINESS AS LICENSE # ICKER # APPLICANTS NAME PURPOSE IC GLYS 07 000 0 01230 C B GAL INC J 'S PLACE 08 00072 01231 C AMCO OF IOWA CITY INC JOH ' GROCERY, INC. 85 00054 01232 C J 'S GROCERY INC KONNEXION THE 08 00069 01233 C SMOKERS UNLIMITED ul' & GO #422 85 00025 01234 C KUM & GO LC �KL & GO #51 01 01087 01235 C l UM & GO LC & GO #52 01 01088 01236 C UM & GO LC e& GO #53 01 01089 01237 C UM & GO LC VM MIGHTY SHOP, INC. 85 00045 01238 C M MIGHTY SHOP INC ,I�3QUOR DOWNTOWN 0 00072 01239 C VVVVVVJASON CAYLOR L UOR HOUSE LTD 03 0 08 01240 C IQUOR HOUSE LTD RTH DODGE EXPRES O1 01090 01241 C D EXPRESS INC 0��RTH DODGE SIN IR 10 00056 01242 C DODGE IN O THE GO C ENIENCE STORES 00 00002 1243 C THE GO NVENIENCE STORES INC POP P 06 00070 01 5 C AKSHI MEARS RJ XPRESS 07 00075 01246 C Z LLC CIGARETTE PERMITS PRINTED : 11- MAY -12 PAGE: 4 DOIN BUSINESS AS LICENS # STICKER # APPL TS NAME PURPOS RUSS' NORTH DE SERVICE 5 00005 01247 C RUSS'NORTHSI SEVICE SA 09 00060 01248 C WAR LLC S TT BLVD HAWKEYE NVENIENCE STORE 00 00007 01249 C WK EYE OIL CO INC ,SQUfHSIDE LIQUOR & TOBA CO 12 00064 00064 C I OUTHSIDE SPIRITS LLC SJ3Ert7RBAN BP AMOCO 97 00007 012 5 0 C ✓SUBURBAN INVESTORS LC 9 SU BAN BP AMOCO KEOKUK STREE 98 00012 01251 C URBAN INVESTORS, L.C. /HEN ZONE 11 00057 01252 C N ZONE CORPORATION T ACCO BOWL 91 00009 01253 C ISSISSIPPI VALLEY TOBACCO TO CCO OUTLET PLUS #537 97 00008 01254 C ILK TRIP INC V OMOUS GLASS WORKS 11 00059 01259 C (/ERIC M & NICK VANCE WA EEENS #5077 85 00029 01255 C LGRREEN COMPANY W BtT SUPERCENT R #1721 92 0012 01256 C AL -MART STORES NC ZOMBIES TOBACC OUTLET 11 000 0 01257 C ZOMBIES TOBAC O OUTLET LLC AL CIGARETTE PERMITS: 61 3d Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246 RESOLUTION NO. 12 -292 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A SUBORDINATION AGREEMENT BETWEEN THE CITY OF IOWA CITY AND MIDWESTONE BANK, IOWA CITY, IOWA FOR PROPERTY LOCATED AT 1813 G STREET, IOWA CITY, IOWA. WHEREAS, the City of Iowa City is the owner and holder of a Mortgage, executed by the owner of the property on June 2, 2010, recorded on June 10, 2010, in Book 4601, Page 757 through Page 762, in the Johnson County Recorder's Office covering the following described real estate: Lot 3 in Block 43 in East Iowa City, Johnson County, Iowa, according to the recorded plat thereof. WHEREAS, MidWestOne Bank is refinancing a mortgage to the owner of the property located at 1813 G Street and is securing the loan with a mortgage covering the real estate described above; and WHEREAS, the purpose of the refinancing is solely to obtain a lower interest rate, and MidWestOne Bank will be providing no additional funds to the owner; and WHEREAS, MidWestOne Bank has'requested that the City execute the attached subordination agreement thereby making the City's lien subordinate to the lien of said mortgage with MidWestOne Bank; and WHEREAS, the subordination will not change the City's current position, that is, it will remain as second position and inferior to the owner's primary lender. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the subordination agreement between the City of Iowa City and MidWestOne Bank, Iowa City, Iowa. Passed and approved this 19th day of June , 20_I_. �,"A MAYOR Approved by Resolution No. 12 -292 Page 2 ATTEST: c % `-, - ° ,�z-Ap CITY ERK City Attorney's Office It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x_ Dickens x Dobyns Hayek x Mims x Payne - Throgmorton SUBORDINATION AGREEMENT THIS AGREEMENT is made by and between the City of Iowa City, herein the City, and MidWestOne Bank, Iowa City, Iowa, herein the Financial Institution. WHEREAS, the City, is the owner and holder of certain Mortgage which at this time is in the amount of $10.635.87, and was executed by Nancy J. Bell and Michael G. Bell (herein the Owner), dated June 2. 2010, recorded June 10. 2010, in Book 4601, Page 757 through Page 762, Johnson County Recorder's Office, covering the following described real property: Lot 3 in Block 43 in East Iowa City, Johnson County, Iowa, according to the recorded plat thereof WHEREAS, the Financial Institution has loaned the sum of $40,000 on a promissory note to be executed by the Financial Institution, securing a mortgage covering the real property described above; and WHEREAS, to induce the Financial Institution to make such loan, it is necessary that the Mortgage held by the City be subordinated to the lien of the mortgage made by the Financial Institution. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties hereto, the parties agree as follows: 1. Subordination. The City hereby covenants and agrees with the Financial Institution that the above noted Mortgage held by the City is and shall continue to be subject and subordinate to the lien of the mortgage about to be made by the Financial Institution. 2. Consideration. The City acknowledges receipt from the Financial Institution of One Hundred and Fifty Dollars ($150.00) and other good and valuable consideration for its act of subordination herein. 3. Senior Mortgage. The mortgage in favor of the Financial Institution is hereby acknowledged as a lien superior to the Mortgage of the City. LENDER'S ACKNOWLEDGEMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) On this 8th day of June , 2012 , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Peggy Doerge, to me personally known, who being by me duly sworn, did say that he /she is the Vice President of MidWestOne Bank, that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that said Peggy Doerge acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by him /her voluntarily executed. &X�j EAA( DANIEL POSSEHL Notary Public in and for the State of Iowa My Commission expires: I-I,'N S /P o y Commission Number 766236 _ /owl, i! My Commission Expires My Commission expires: I-I,'N 4. Binding Effect. This agreement shall be binding upon and inure to the benefit of the respective heirs, legal representatives, successors, and assigns of the parties hereto. Dated this, i day of June, 2012. CITY OF IOWA CITY By / i� Mayor Attest: City C erk CITY'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) FINANCIAL INSTITUTION 01� � N�F1 On this — / g day of Ju4rz , 20 ia–, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared )-4 QyQk and Marian K. Karr, to me personally known, and, who, being by me duly sworn, did say that t that are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (Ordinance) (Resolution) No. /.� – passed (the Resolution adopted) by the City Council, under Roll Call No. ---- -- of the City Council on the day of V,,Nr , 20 � .9- , and that -;3' and Marian K. Karr acknowledged the execution of the instrument to be their voluntafy act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. A'a'o-0- G'4' PR'A °A os Notary Public in and for the State of Iowa C m • sion N bef 766 Co 'm• sio '. X e 8oNDttAE F i Commission Numbe;D • pow My3o 7 t M� ' 6-19 3d(2) Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246 RESOLUTION NO. 12 -293 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A SUBORDINATION AGREEMENT BETWEEN THE CITY OF IOWA CITY AND MIDWESTONE BANK, IOWA CITY, IOWA FOR PROPERTY LOCATED AT 1083 WALKER CIRCLE, IOWA CITY, IOWA. WHEREAS, the City of Iowa City is the owner and holder of a Forgivable Mortgage, executed by the owner of the property on February 18, 2010, recorded on March 1, 2010, in Book 4560, Page 663 through Page 668, in the Johnson County Recorder's Office covering the following described real estate: Unit 1083, Peninsula Neighborhood, Lot 36 Condominiums, according to the Declaration of Submission of Property to Horizontal Property Regime pursuant to Chapter 499B of the Code of Iowa, recorded December 18, 2009 in Book 4540, Page 99, Records of the Recorder of Johnson County, Iowa, together with said unit's undivided interest in the common elements. Said Peninsula Neighborhood, Lot 36 Condominiums are located on Lot 36, Peninsula Neighborhood, Second Addition, Iowa City, Iowa, according to the plat thereof recorded in Book 46, Page 186, Plat records of Johnson County, Iowa. WHEREAS, MidWestOne Bank is refinancing a mortgage to the owner of the property located at 1083 Walker Circle and is securing the loan with a mortgage covering the real estate described above; and WHEREAS, the purpose of the refinancing is solely to obtain a lower interest rate, and MidWestOne Bank will be providing no additional funds to the owner; and WHEREAS, MidWestOne Bank has requested that the City execute the attached subordination agreement thereby making the City's lien subordinate to the lien of said mortgage with MidWestOne Bank; and WHEREAS, the subordination will not change the City's current position, that is, it will remain as second position and inferior to the owner's primary lender. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the subordination agreement between the City of Iowa City and MidWestOne Bank, Iowa City, Iowa. Resolution No. 12 -293 Page 2 Passed and approved this 19th day of June , 20_x_ MAYOR may, �J Approved by ATTEST: CITY WERK City Attorney's Office It was moved by Mims and seconded by Cbamgi on the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton SUBORDINATION AGREEMENT THIS AGREEMENT is made by and between the City of Iowa City, herein the City, and MidWestOne Bank, Iowa City, Iowa, herein the Financial Institution. WHEREAS, the City is the owner and holder of certain Forgivable Mortgage which at this time is in the amount of $32,400, and was executed by Nicholas C. Summy (herein the Owner), dated February 18, 2010, recorded March 1, 2010, in Book 4560, Page 663 through Page 668, Johnson County Recorder's Office, covering the following described real property: Unit 1083, Peninsula Neighborhood, Lot 36 Condominiums, according to the Declaration of Submission of Property to Horizontal Property Regime pursuant to Chapter 499B of the Code of Iowa, recorded December 18, 2009 in Book 4540, Page 99, Records of the Recorder of Johnson County, Iowa, together with said unit's undivided interest in the common elements. Said Peninsula Neighborhood, Lot 36 Condominiums are located on Lot 36, Peninsula Neighborhood, Second Addition, Iowa City, Iowa, according to the plat thereof recorded in Book 46, Page 186, Plat records of Johnson County, Iowa. WHEREAS, the Financial Institution has loaned the sum of $122,000 on a promissory note to be executed by the Financial Institution, securing a mortgage covering the real property described above; and WHEREAS, to induce the Financial Institution to make such loan, it is necessary that the Forgivable Mortgage held by the City be subordinated to the lien of the mortgage made by the Financial Institution. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties hereto, the parties agree as follows: Subordination. The City hereby covenants and agrees with the Financial Institution that the above noted Forgivable Mortgage held by the City is and shall continue to be subject and subordinate to the lien of the mortgage about to be made by the Financial Institution. 2. Consideration. The City acknowledges receipt from the Financial Institution of One Hundred and Fifty Dollars ($150.00) and other good and valuable consideration for its act of subordination herein. 3. Senior Mortgage. The mortgage in favor of the Financial Institution is hereby acknowledged as a lien superior to the Forgivable Mortgage of the City. 4. Binding Effect. This agreement shall be binding upon and inure to the benefit of the respective heirs, legal representatives, successors, and assigns of the parties hereto. 1 Dated this 1q day of uN , 20 CITY OF IOWA CITY By Mayor Attest: Citytterk CITY'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) FINANCIAL INSTITUTION a W 1600,11— r�m On this /� A day of Qtic--- - , 20 /a--, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Mec ta, J. '9- 1 and Marian K. Karr, to me personally known, and, who, being by me duly sworn, did say Mat they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (Ordinance) (Resolution) No. la- a93 passed (the Resolution adopted) Whe City Council, under Roll Call No. --- of the City Council on the /2 -"'A day of d L,m1 , 20 I.;k , and that iM a t+ 1 a us �Z— - -4 a W z 1� and Marian K. Karr acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. SONDRAE FORT Commission Number 159791 �rx'�rtaa ow a y �ommi�i sExpkes Notary Public in and for the State of Iowa LENDER'S ACKNOWLEDGEMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) I On this L4k day of 12012- , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared iT` 1 rrr�_ , to me t personally known, who being by me duly sworn, did say that he /she is the VC e- t ;idil n+ of rn i J Wt c,fQine. `E n , that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that said R,?2t I rg-, e- acknowledged the execution of said instrument to be the vo ntary act and deed of said corporation, by it and by him /her voluntarily executed. s r• OAC C CHROEDER Notary Pubic in and for the State of Iowa My Commission expires: - ��`Zo%S s S OTT S APR o q Commission Number 189383 _ /owP My Commission Expires -2615 My Commission expires: - ��`Zo%S FILED Matt Schultz 28E W Secretary of State W 1 V ,.• Agreement M505276 74, aA11''oc State of Iowa o 6/25/2012 11:00:45 AM PLEASE READ INSTRUCTIONS ON BACK BEFORE COMPLETING THIS FORM Item 1. The full legal name, organization type and county of each participant to this agreement are: Full Legal Name Organization Type *County Party 1 City of Iowa City City Johnson Party 2 City of University Heights City Johnson Party 3 Party 4 Party 5 *Enter"Other"if not in Iowa Item 2. The type of Public Service included in this agreement is: 410 Public Transit (Enter only one Service Code and Description) Code Number Service Description Item 3. The purpose of this agreement is: (please be specific) Agreement between the City of Iowa City and University Heights for the provision of Transit Service within the corporate limits of University Heights (Res 12-294) Item 4. The duration of this agreement is: (check one) EAgreement Expires 6/30/2013 Dndefinite Duration [mm/dd/yyyy] Item 5. Does this agreement amend or renew an existing agreement? (check one) ❑ NO m YES Filing #of the agreement: M505275 (Use the filing number of the most recent version filed for this agreement) The filing number of the agreement may be found by searching the 28E database at: www.sos.state.ia.us/28E. Item 6. Attach two copies of the agreement to this form if not filing online. Item 7. The primary contact for further information regarding this agreement is: (optional) LAST Name Tuttle FIRST Name Kellie Title Administrative Secretary Department Administrative Secretary Email kellie-tuttle(a�iowa-city.org Phone 319-356-5043 Prepared by: Brad Neumann, PCD, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5252 RESOLUTION NO. 12 -294 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST THE FY2013 AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS FOR THE PROVISION OF TRANSIT SERVICE WITHIN THE CORPORATE LIMITS OF UNIVERSITY HEIGHTS WHEREAS, Chapter 28E, Code of Iowa, provides, in substance, that any power which may be exercised by a public agency of this state may be exercised jointly with another public agency having such power; and WHEREAS, it is in the mutual interest of the City of Iowa City and the City of University Heights to encourage the use of public transit by residents of University Heights; and WHEREAS, the parties have negotiated a contract for transit service in FY2013 at a rate of $34,277, a copy of which is attached and incorporated herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The attached FY2013 28E Agreement for transit services between the City of Iowa City, Iowa and the City of University Heights, Iowa is hereby approved, and the Mayor is hereby authorized to execute and the City Clerk to attest in duplicate same on behalf of the City of Iowa City. 2. The City Clerk is directed to file a copy of said agreement with the Secretary of the State of Iowa, as required by Iowa Code Chapter 28E. Passed and approved this 19th day of June 120 12 Ap roved by ATTEST: �LJ _~ ��lg�of CITY LERK City Attorney's Office Resolution No. 12 -294 Page 2 It was moved by Mims, and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: X X Ppdadm /res/28E -IC -U Heights.doc NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton Prepared by: Brad Neumann, PCD, 410 E. Washington, Iowa City, IA 52240 319 - 356 -5252 FY2013 28E AGREEMENT FOR TRANSIT SERVICES BETWEEN THE CITY OF IOWA CITY, IOWA AND THE CITY OF UNIVERSITY HEIGHTS, IOWA This agreement is made and entered into this 12 day of J mar , 2012, by and between the City of Iowa City, Iowa and the City of University Heights, Iowa, both municipal corporations. WHEREAS, Chapter 28E of the Code of Iowa provides, in substance, that any power which may be exercised by a public agency of the state may be exercised jointly with another public agency having such power, and WHEREAS, it is in the mutual interest of the parties to encourage the use of public transit by residents of Iowa City and University Heights. NOW, THEREFORE, it is hereby agreed by and between the City of Iowa City and the City of University Heights, as follows: L Scope of Services The City of Iowa City shall provide public transit service to the City of University Heights. Iowa City shall determine the scheduling of buses, the routes, and the location of bus stops within University Heights. It is agreed that residents of University Heights will obtain the same level of transit service as residents of Iowa City who are served by the same routes. Residents of University Heights will also be eligible for the same fare structure as Iowa City residents. //, Duration The term of this agreement shall commence July 1, 2012, and continue through and including June 30, 2013. / //. Termination This agreement may be terminated upon thirty calendar days written notice by either party. /V, Compensation The City of University Heights agrees to pay $34,277 for the provision of public transit service as herein described during FY2013. Payment shall be made in twelve monthly payments of $2,856.42 each, to be received by the City of Iowa City on or before the 15th of each month. V. Chapter 28E, Code of Iowa In accordance with Chapter 28E of the Code of Iowa, this agreement shall be filed with the Secretary of the State of Iowa and the County Recorder of Johnson County, Iowa. CITY OF IOWA CITY By: & Matthew J. Hayek, Ma or Attest: City C erk, Marian K. Karr Approved by: City Attorney's Office STATE OF IOWA ) ) ss: JOHNSON COUNTY ) CITY OF UNIVERSITY HEIGHTS rom, Mayor Attest: 0" Y aL-L-t 6& P,(- R.,..., City Clerk, Christine Anderson On this 19 — day of J u" r , 20 ia- , before me, So v8fzAP- Y o2T a Notary Public in and for the State of Iowa, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in Resolution No. /a- a92 passed by the City Council, on the i9 '-3 day of 7J—omF_ , 20 is , and that Matthew J. Hayek and Marian K. Karr acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. o LI SONDRAE FORT r commission Number 159791 My Commission Expires Waoi Notary Public in and for the State of Iowa STATE OF IOWA ) ss: JOHNSON COUNTY ) On this day of me 20 before me, A E ��g,` N rA ✓ a , a Notary Public in and for the State of Iowa, personally appeared Louise From and Christine Anderson, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of University Heights, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (Resolution) No. Q. --1 _ passed by the City Council, on the 1 day of Zj'�L,.,,,� , 20 1 � , and that Louise From and Christine Anderson, acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. ^� RD .) N10. 161385 Notary Public in and for the State of Iowa .' ;; Cif ✓a;ISSION EXPIRES iccogtp/a 8E- Idgl'�4 .doc —.L-L(, �.- CITY OF IOWA CITY 3d�3) ,1 N. M40 -�kM� -� D UM ME MO RAN Date: June 11, 2012 To: Tom Markus, City Manager From: Chris O'Brien, Director of Transportation Services Re: FY2013 28E Agreement with University Heights to provide transit service Introduction: Included for consideration for the June 19, 2012 City Council Meeting you will find the Item & Comment, Resolution and supporting documentation for the 28 E Agreement between the City of Iowa City and the City of University Heights for FY2013 fixed transit services. Historylbackground: University Heights has contracted with the City of Iowa City for transit services since the 1970's. The contract amount is based on a formula taking into account the Consumer Price Index as an escalator of the previous year's contract. This contract is then submitted to the City of University Heights for approval. The University Heights City Council approved this agreement at their June 12, 2012 council meeting. Discussion of Solution: Per this agreement, University Heights agrees to pay an amount of $34,277.00 for contracted fixed route transit services. This was an increase of 2.2% which was based on the National Consumer Price Index. Recommendation: It is my recommendation that City Council approve this resolution for the 28E Agreement between University Heights and the City of Iowa City for fixed route transit services. 3 4 M M Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246 RESOLUTION NO. 12 -295 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A SUBORDINATION AGREEMENT BETWEEN THE CITY OF IOWA CITY AND MIDWESTONE BANK, IOWA CITY, IOWA FOR PROPERTY LOCATED AT 305 TAFT SPEEDWAY, IOWA CITY, IOWA. WHEREAS, the City of Iowa City is the owner and holder of a Retention Agreement and Deed Restrictions, executed by the owners of the property on August 3, 2010, recorded on August 13, 2010, in Book 4635, Page 432 through Page 433, in the Johnson County Recorder's Office covering the following described real estate: Lot five (5) of survey in Government Lot Seven (7), section four (4), township seventy -nine (79) north, range six (6) west of the 5th P.M. according to the plat thereof recorded in Plat Book 3, page 225, Recorder's records of Johnson County, Iowa, subject to covenants, conditions, restrictions and easements of record. WHEREAS, the Retention Agreements and Deed Restrictions reflects the provisions of the state Jumpstart program, through which the owners received flood rehabilitation assistance; and WHEREAS, MidWestOne Bank has refinanced a mortgage to the owners of the property located at 305 Taft Speedway and is securing the loan with a mortgage covering the real estate described above; and WHEREAS, the purpose of the refinancing is solely to obtain a lower interest rate, and MidWestOne Bank will be providing no additional funds to the owner; and WHEREAS, MidWestOne Bank has requested that the City execute the attached subordination agreement thereby making the City's lien subordinate to the lien of said mortgage with MidWestOne Bank; and WHEREAS, the subordination will not change the City's current position, that is it will remain is second position and inferior to the owner's primary lender. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the subordination agreement between the City of Iowa City and MidWestOne Bank, Iowa City, Iowa. Resolution No. 12 -295 Page 2 Passed and approved this 19th day of June , 20_1_L_ .� 4f 6. Approved by - ATTEST: CITY RK City Attorney's Office It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion x Dickens x Dobyns x Hayek x Mims X Payne x Throgmorton SUBORDINATION AGREEMENT THIS AGREEMENT is made by and between the City of Iowa City, herein the City, and MidWestOne Bank, Iowa City, Iowa, herein the Financial Institution. WHEREAS, the City is the owner and holder of certain Retention Agreement and Deed Restrictions which at this time is in the amount of $19,999.20, and was executed by Gary W. Davisson and Susan M. Davisson (herein the Owners), dated August 3, 2010, recorded August 13, 2010, in Book 4635, Page 432 through Page 433, Johnson County Recorder's Office, covering the following described real property: Lot five (5) of survey in Government Lot Seven (7), section four (4), township seventy -nine (79) north, range six (6) west of the 5th P.M. according to the plat thereof recorded in Plat Book 3, page 225, Recorder's records of Johnson County, Iowa, subject to covenants, conditions, restrictions and easements of record. WHEREAS, the Financial Institution has loaned the sum of $146,000 on a promissory note to be executed by the Financial Institution, securing a mortgage covering the real property described above; and WHEREAS, to induce the Financial Institution to make such loan, it is necessary that the Retention Agreement and Deed Restrictions held by the City be subordinated to the lien of the mortgage made by the Financial Institution. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties hereto, the parties agree as follows: Subordination. The City hereby covenants and agrees with the Financial Institution that the above noted Retention Agreement and Deed Restrictions held by the City is and shall continue to be subject and subordinate to the lien of the mortgage about to be made by the Financial Institution. 2. Consideration. The City acknowledges receipt from the Financial Institution of One Hundred and Fifty Dollars ($150.00) and other good and valuable consideration for its act of subordination herein. 3. Senior Mortgage. The mortgage in favor of the Financial Institution is hereby acknowledged as a lien superior to the Retention Agreement and Deed Restrictions of the City. 4. Binding Effect. This agreement shall be binding upon and inure to the benefit of the respective heirs, legal representatives, successors, and assigns of the parties hereto. Dated this .1.9_x' day of June, 2012. CITY OF IOWA CITY By_ Mayor Attest: `/ CITY'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) FINANCIAL INSTITUTION ,fhegandler, Vice President On this / 9 day of uN F , 20 /a , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jtc-41,0-w , 44.-Me-1L and Marian K. Karr, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (Ordinance) (Resolution) No. passed (the Resolution adopted) by the City Council, under Roll Call No. of the City Council on the 9'�' day of N , 20 i9- , and that Msi i+hew J, arc or K and Marian K. Karr acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. WOP SONDRAE FORT Commission Nmber 159791 My Commission Explms a ' ao n Notary Public in and for the State of Iowa LENDER'S ACKNOWLEDGEMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) On this 11th day of June , 2012 , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Jayne Sandler, to me personally known, who being by me duly sworn, did say that he /she is the Vice President of MidWestOne Bank, that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that said Jayne Sandler acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by him /her voluntarily executed. 6d 2&A NDANIEL POSSEHL Nota Public in and for the State of Iowa commission Number 766236 ry AL My commission Expires My Commission expires: Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5246 RESOLUTION NO. 12 -296 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A SUBORDINATION AGREEMENT BETWEEN THE CITY OF IOWA CITY AND HILLS BANK AND TRUST, CORALVILLE, IOWA FOR PROPERTY LOCATED AT 1863 RICHMOND LANE, IOWA CITY, IOWA. WHEREAS, the City of Iowa City is the owner and holder of a Forgivable Mortgage, executed by the owners of the property on May 13, 2011, recorded on May 19, 2011, in Book 4752, Page 887 through Page 892, in the Johnson County Recorder's Office covering the following described real estate: Lot 80, Village Green — Part XXIII, Iowa City, Iowa according to the plat thereof recorded in Book 50, Page 176, Plat Records of Johnson County. WHEREAS, Hills Bank and Trust is refinancing a mortgage to the owners of the property located at 1863 Richmond Lane and is securing the loan with a mortgage covering the real estate described above; and WHEREAS, the purpose of the refinancing is solely to obtain a lower interest rate, and Hills Bank and Trust will be providing no additional funds to the owner; and WHEREAS, Hills Bank and Trust has requested that the City execute the attached subordination agreement thereby making the City's lien subordinate to the lien of said mortgage with Hills Bank and Trust; and WHEREAS, the subordination will not change the City's current position, that is, it will remain as second position and inferior to the owner's primary lender. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the subordination agreement between the City of Iowa City and Hills Bank and Trust, Coralville, Iowa. Passed and approved this 19th day of June Aav-�� MAYOR ATTEST: CITY ERK 20 12 A _N2proved by City Attorney's Office /d, 3d(5) Resolution No. Page 2 12 -296 It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek X Mims x Payne x Throgmorton SUBORDINATION AGREEMENT THIS AGREEMENT is made by and between the City of Iowa City, herein the City, and Hills Bank and Trust, Coralville, Iowa, herein the Financial Institution. WHEREAS, the City is the owner and holder of certain Forgivable Mortgage which at this time is in the amount of $35,000, and was executed by Devin J. Cavanaugh and Sarah E. Cavanaugh (herein the Owner), dated May 13, 2011, recorded May 19, 2011, in Book 4752, Page 887 through Page 892, Johnson County Recorder's Office, covering the following described real property: Lot 80, Village Green — Part XXIII, Iowa City, Iowa according to the plat thereof recorded in Book 50, Page 176, Plat Records of Johnson County. WHEREAS, the Financial Institution has loaned the sum of $130,000 on a promissory note to be executed by the Financial Institution, securing a mortgage covering the real property described above; and WHEREAS, to induce the Financial Institution to make such loan, it is necessary that the Forgivable Mortgage held by the City be subordinated to the lien of the mortgage made by the Financial Institution. NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties hereto, the parties agree as follows: Subordination. The City hereby covenants and agrees with the Financial Institution that the above noted Forgivable Mortgage held by the City is and shall continue to be subject and subordinate to the lien of the mortgage about to be made by the Financial Institution. 2. Consideration. The City acknowledges receipt from the Financial Institution of One Hundred and Fifty Dollars ($150.00) and other good and valuable consideration for its act of subordination herein. 3. Senior Mortgage. The mortgage in favor of the Financial Institution is hereby acknowledged as a lien superior to the Forgivable Mortgage of the City. 4. Binding Effect. This agreement shall be binding upon and inure to the benefit of the respective heirs, legal representatives, successors, and assigns of the parties hereto. Dated this ►9 ;h day of ,QE , 20 /,�- . CITY OF IOWA CITY By Mayor Attest: City C CITY'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) FINANCIAL INSTITUTION On this N day of uNE , 20 /o" ' before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Mg.lfk,ew "J- Paw o-K and Marian K. Kan-, to me personally known, and, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (Ordinance) (Resolution) No. /a —age passed (the Resolution adopted) by the City Council, under Roll Call No. of the City Council on the 0 "� day of , 20 ic,4- , and that Lo and Marian K. Karr acknowledged the execution of the instrument to be their voluntafy act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. *0W SONDRAE FORT zCommission Number 159791 My Commission Expires • 3 q/ a0 5 Notary Public in and for the State of Iowa LENDER'S ACKNOWLEDGEMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) On this /Mo- day of , 20 % , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared to me personally known, who being by me duly sworn, did say that he /she is the y1ce %i'2'�c.c�e.n' of d % cCIQ W(d Sri' &64Ci,� , that said instrument was signed on behalf of said corporation by authority of its Board of Directors; and that said acknowledged the execution of said instrument to him /her voluntarily executed. KEITH JONES CommhWon dumber 102914; w MyCom P c tree t be the voluntary a nd deed of said corporation, by it and by Notary Public in a d f State of Iowa My Commission expires: /arc g 7_ O t—S AAb Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12-297 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST AN AMENDMENT TO THE AGREEMENT WITH JOSEPH J. HENDERSON & SON, INC. WHEREAS, the City has entered into an agreement with Joseph J. Henderson & Son, Inc. for the Wastewater Treatment Facilities Consolidation Project; and WHEREAS, parties wish to amend a provision regarding liability insurance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT the Mayor is authorized to sign and the City Clerk to attest to the Amendment to Agreement, a copy of which is attached. Passed and approved this 19th day of .Tine , 2012. ATTEST: 71! CIT CCLERK Approved by City Attorney's Office Resolution No. Page 2 It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion -x— Dickens x Dobyns x Hayek Mims Payne x Throgmorton AMENDMENT TO AGREEMENT This amendment to Agreement between the City of Iowa City, a municipal corporation ( "Owner "), and Joseph J. Henderson & Son, Inc., an Illinois corporation ( "Contractor "), is being entered into in Iowa City, Iowa. WHEREAS, Owner and Contractor entered into a contract entitled Agreement on April 24, 2012 for the Wastewater Treatment Facilities Consolidation Project; WHEREAS, the parties wish to amend the provision regarding the Contractor's liability insurance requirement; and WHEREAS, Paragraph 3.04 of the General Conditions provides for the parties to amend the Agreement IT IS THEREFORE AGREED that: • Paragraph SC -5.04 of the Supplemental Conditions, entitled "Contractor's Liability Insurance," is deleted in its entirety, and Exhibit A, which is attached and incorporated herein, is substituted in lieu thereof. • All other terms and provisions of said Agreement, not inconsistent with this amendment, remain in full force and effect. CONTRACTOR Joseph J. en de n & So , 4 /( q jZ By: David Henderson, President Date / b By: m a N&rnul , Assistant Secretary Date CONTRACTR ACKNOWLEDGMENT STATE OF ILLINOIS) ) ss: LAKE COUNTY ) This instrument was acknowledged before me on (� /f la t,Q_ (`(, , 2012 by David Henderson and Linda Zoetmulder as Pres' ent and A istan ary er etively of Joseph J. Henderson & Son, Inc.. Notary Public in and for the State of Illinois "OFFICIAL SEAL" BRENDA S. SPARKS NOTARY PUBLIC, STATE OF ILLINOIS My Commission expires: Z (Z� (3 My Comrr.:ssron Expires Dec. 23, 2013 CITY OF IOWA CITY By: Matthew J. Hayek, Mayor Attest: 7VX Mari K. Karr, City Clerk STATE OF IOWA ) ) ss: JOHNSON COUNTY ) u,ut_ 17 Jo!a Date � Tu n1 l rf ., o,, Date CITY ACKNOWLEDGMENT On this I day of hN >^ , 2012, before me, the undersigned, a notary public in and for the State of Iowa, personally appeared Matthew J. Hayek 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, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntaril executed. L*ow SONDRAE FORT Commission Number 159791My Commission Expires �� a Notary Public in and for the State of Iowa Approved by: City Attorney's Office CITY OF IOWA CITY EXHIBIT A SUPPLEMENTARY CONDITIONS These Supplementary Conditions amend or supplement the City of Iowa City General Conditions of the Construction Contract and other provisions of the Contract Documents as indicated below. All provisions which are not so amended or supplemented remain in full force and effect. Terms used in these Supplementary Conditions will have meanings assigned to them in the General Conditions. Additional terms used in these Supplementary Conditions have the meanings indicated below, which are applicable to both the singular and plural thereof. SC -5.04 CONTRACTOR's LIABILITY INSURANCE The limits of liability for the insurance required by section 5.04 of the General Conditions shall provide coverage for not less than the following amounts or greater where required by Laws and Regulations: 1. Workers' Compensation, and related coverages under paragraphs 5.04.A.1 and A.2 of the General Conditions: a. State: Statutory b. Applicable Federal (e.g., Longshoreman's): Statutory c. Employer's Liability: $1,000,000 2. CONTRACTOR's General Liability under paragraphs 5.04.A.3 through A.6 of the General Conditions which shall include completed operations and product liability coverages: a. General Aggregate $2,000,000 b. Products -- Completed Operations Aggregate $2,000,000 c. Personal and Advertising Injury $1,000,000 d. Each Occurrence (Bodily Injury and Property Damage) $1,000,000 e. Property Damage liability insurance will provide Explosion, Collapse and Underground coverages where applicable. f. Property Damage liability insurance for work performed by subcontractors of CONTRACTOR g. Excess or Umbrella Liability: General Aggregate Each Occurrence $9,000,000 $9,000,000 3. Automobile Liability under paragraph 5.04.A.6 of the General Conditions: a. Bodily injury: Per Person Per Accident 1 $1,000,000 $1,000,000 b. Property Damage: Each Accident $1,000,000 In addition, CONTRACTOR shall be required to comply with the following provisions with respect to insurance coverage: The entire amount of CONTRACTOR's liability insurance policy coverage limits, identified in the policy and in the Certificate of Insurance, must, under the policy, be available to pay damages for which the insured CONTRACTOR becomes liable, or for which the insured assumes liability under the indemnity agreement herein contained, and such coverage amount shall not be subject to reduction or set off by virtue of investigation or defense costs incurred by CONTRACTOR's insurer. The entire amount of CONTRACTOR's liability insurance policy coverage limits shall be payable by CONTRACTOR's insurer, with no deductible to be paid by, or self - insured retention to be attributed to, CONTRACTOR unless this requirement is waived by OWNER. CONTRACTOR' Certificate of Insurance must set forth the nature and amount of any such deductible or self - insured retention. If CONTRACTOR's liability insurance coverage is subject to any special exclusions or limitations not common to the type of coverage being provided, such exclusions or limitations shall be noted on the Certificate of Insurance. CONTRACTOR shall'include OWNER (City of Iowa City, Iowa, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their boards' members, employees and volunteers) as additional insured on all policies except workers compensation and professional liability. Such additional insured endorsement(s) shall be make CONTRACTOR's liability insurance primary to OWNER's and furthermore, shall not be contributing with any other insurance or similar protection available to OWNER, whether such available protection be primary, contributing or excess. Owner shall be an additional insured as respects all required aforementioned coverages including products and completed operations liability for a period of two years after the completion of the project. CONTRACTOR'S General Liability, Excess Liability, Auto Liability and Workers' Compensation insurance shall be endorsed with the Governmental Immunities Endorsement (see attached copy) and Waiver of Subrogation in favor of the OWNER. CONTRACTOR'S Workers' Compensation insurance shall also be endorsed with the Alternate Employer endorsement naming the OWNER as the Alternate Employer. Certificates of insurance shall state that OWNER is an additional insured on a primary and non - contributory basis and further that the Governmental Immunities Endorsement, Waiver of Subrogation Endorsement and Alternate Employer Endorsement apply and copies of all such endorsements shall be attached. The CONTRACTOR shall require thatany of its agents and subcontractors who perform work and /or services pursuant to the provisions of this Agreement to purchase and maintain the same types of insurance as are required of the CONTRACTOR. The OWNER requires that the CONTRACTOR'S Insurance carrier be A rated or better by A.M.Best. CONTRACTOR shall provide OWNER with "occurrence form" liability insurance coverage. OWNER reserves the right to waive any of the insurance requirements herein provided. OWNER also reserves the right to reject CONTRACTOR's insurance if not in compliance with the requirements herein provided, and on that basis to either award the contract to the next low bidder, or declare a default and seek specific performance or termination, as the case may be. In the event that any of the policies of insurance or insurance coverage identified on CONTRACTOR's Certificate of Insurance are cancelled or modified, or in the event that CONTRACTOR incurs liability losses, either due to activities under this Contract, or due to other activities not under this Contract but covered by the same insurance, and such losses exhaust the aggregate limits of CONTRACTOR' liability insurance, then OWNER may, in its discretion, either suspend CONTRACTOR's operations or activities under this Contract, or terminate this Contract, and withhold payment for Work performed on the Contract. 2 In the event that any of the policies or insurance coverage identified on CONTRACTOR's Certificate of Insurance are cancelled or modified, then OWNER may, in its discretion either suspend CONTRACTOR's operations or activities under this Contract or terminate this Contract and withhold payment for Work performed on the Contract 3 AMEND This amendment to Agreement ( "Owner "), and Joseph J. Henderson & entered into in Iowa City, Iowa. WHEREAS, Owner and Contr 24, 2012 for the Wastewater Treatme WHEREAS, the parties wish t insurance requirement; and WHEREAS, Paragraph 3.04 0 the Agreement IT IS THEREFORE AGREED AGREEMENT )etween the`�,ity of Iowa City, a municipal corporation Son, Inc., an linois corporation ( "Contractor "), is being actor entered Facilities C amend the 1 the General that: a contract entitled Agreement on April lidation Project; ion regarding the Contractor's liability provides for the parties to amend • Paragraph SC -5.04 of t e Supplemental ponditions, entitled "Contractor's Liability Insurance," is Jeleted in its ent rety, and Exhibit A, which is attached and incorporated herein, is substituted ' 1 lieu thereof. • All other terms and pri amendment, remain in CONTRACTOR Joseph J. Henderson & Son, Inc. By: David Henderson, President By: Linda Zoetmulder, Assistant STATE OF ILLINOIS) ) ss: LAKE COUNTY ) This instrument was acknow Henderson and Linda Zoetgt Henderson & Son, Inc.. ons of sai Agreement, not inconsistent with this force an effect. Date Date CTR ACKNO I before me on as President and Assistant S , 2012 by David respectively of Joseph J. Notary Public in and for the `State of Illinois My Commission expires: -�4ea') CITY OF IOWA CITY By: Matthew J Attest: Mayor Date Marian K. K City Clerk Date CITY AMNOWLEDGMENT STATE OF IOWA ) ) ss: JOHNSON COUNTY ) On this day f , 2012, before me, the undersigned, a not/ththe ic in and fo the State of owa, personally appeared Matthew J. Hayek and Marian K. Ka person known, who b n.g by me duly sworn, did say that they are the Mayor and Cit resp tively, of said m icipal corporation executing the within and foregoing insth the seal affixed there is the seal of said municipal corporat ion; that said ins s signed and sealed on beh f of said municipal corporation by authority of its City Cothat the said Mayor and City lerk as such officers acknowledged that the execution of rument to be the voluntary ac and deed of said corporation, by it and by them Vol xecuted. NotVv Public in and for the State of Iowa Approved by: (; 1(k ,a City Attorney's Office CITY OF IOW SUPPLEMENTARY CONDITI These Supplementary Conditions amend or sfp plement the City of to the Construction Contract and other provisions of the ntract Documents as i which are not so amended or supplemented remain i full force and effect. Terms used in these Supplementary Conditio s will have meanings a-,: Conditions. Additional terms used in these Supplem ntary Conditions have tl which are applicable to both the singular and plural t reof. SC -5.04 CONTRACTOR's LIABILITY INSURANCE The limits of liability for the insurance re( provide coverage for not less than the follom Regulations: 1. Workers' Compensation, and relate General Conditions: a. State: b. Applicable Federal (e.g., C. Employer's Liability: 2. CONTRACTOR'S General Liability Conditions which shall include completec a. General Aggregate b. Products -- Completed O eras EXHIBIT A City General Conditions of -ated below. All provisions tned to them in the General meanings indicated below, ired by section 5.04 of the General Conditions shall ig amounts or greater where required by Laws and coverages Vfider paragraphs 5.04.A.1 and A.2 of the c. Personal and Advertis� g Injury d. Each Occurrence ( dily Injury a e. Property Damag liability insi Underground cov rages where a f. Property Dama a liability insu, Statutory t oreman's): Statutory $1,000,000 !r paragraphs 5.04.A.3 through A.6 of the General rations and product liability coverages: $2,000,000 Aggregate $2,000,000 $1,000,000 i Property Damage) $1,000,000 ra ce will provide Explosion, Collapse and )p cable. n for work performed by subcontractors of g. ExcesJAg brella Liability: Genegate $9,000,000 E ach nce $9,000,000 3. Automobile Liability under paragraph 5.04.A.6 o he General Conditions: a. Bodily injury: Per Person $1,000,000 Per Accident \ $1,000,000 1 b. Property Damage: Each Accident $1,000,000 In addition, CONTRACTOR shall be requir d to comply wit he following provisions with respect to insurance coverage: The entire amount of CONTRACTOR's iability insurance policy co erage limits, identified in the policy and in the Certificate of Insurance, must, under he policy, be available to p y damages for which the insured CONTRACTOR becomes liable, or for which t e insured assumes liability under the indemnity agreement herein contained, and such coverage amoun shall not be subject to r duction or set off by virtue of investigation or defense costs incurred by CO RACTOR's insurer. The entire amount of CONTRACTOR's iability insurance policy co erage limits shall be payable by CONTRACTOR's insurer, with no deductible t be paid by, or self -insu ed retention to be attributed to, CONTRACTOR unless this requirement is waiv d by OWNER. CONT CTOR's Certificate of Insurance must set forth the nature and amount of any suc deductible or self -ins ed retention. If CONTRACTOR's liability insurance cov rage is subject to a y special exclusions or limitations not common to the type of coverage being provide , such exclusion or limitations shall be noted on the Certificate of Insurance. CONTRACTOR shall include OWNER (City f Iowa City, owa, including all its elected and appointed officials, all its employees and volunteers, all its bo ds, com ssions and /or authorities and their boards' members, employees and volunteers) as additional in ured on II policies except workers compensation and professional liability. Such additional insured endo eme (s) shall be make CONTRACTOR's liability insurance primary to OWNER's and furthermore, shall of b contributing with any other insurance or similar protection available to OWNER, whether such available r ection be primary, contributing or excess. Owner shall be an additional insured as respects all required orementioned coverages including products and completed operations liability for a period of two years er the completion of the project. CONTRACTOR'S General Liability, Excess is 'lity, insurance shall be endorsed with the Governmental I mun, 'es of Subrogation in favor of the OWNER. CONTRAC OR'S c endorsed with the Alternate Employer endorse ent nam Certificates of insurance shall state that OWNER ' an additi i basis and further that the Governmental Immuniti s Endorse Alternate Employer Endorsement apply and cop es of all such Auto Liability and Workers' Compensation Endorsement (see attached copy) and Waiver rkers' Compensation insurance shall also be a the OWNER as the Alternate Employer. ial insured on a primary and non - contributory ant, Waiver of Subrogation Endorsement and indorsements shall be attached. The CONTRACTOR shall require that Ony of its agents a d subcontractors who perform work and /or services pursuant to the provisions of this Agr ement to purchase nd maintain the same types of insurance as are required of the CONTRACTOR. The OWNER requires that the CO RACTOR'S Insurance arrier be A rated or better by A.M.Best. CONTRACTOR shall provide OW ER with "occurrence form liability insurance coverage. OWNER reserves the right to wa' a any of the insurance requirem nts herein provided. OWNER also reserves the right to reject CONTRACT R's insurance if not in complia ce with the requirements herein provided, and on that basis to either aw rd the contract to the next low bid r, or declare a default and seek specific performance or termination, a the case may be. In the event that any of the p icies of insurance or insurance coverage i entified on CONTRACTOR's Certificate of Insurance are cancel d or modified, or in the event that CONTRA TOR incurs liability losses, either due to activities under this Contract, or due to other activities not under this qontract but covered by the same insurance, and such losses exhaust the aggregate limits of CONTRACTOR's liability insurance, then OWNER may, in its discretion, either suspend CONTRACTOR's operations or activities under this Contract, or terminate this Contract, and withhold payment for Work performed on the Contract. 2 In the event that any of the policies or insurance coverage identified on CONTRACTOR'S Certificate of Insurance are cancelled or modified, then OWNER may, in its discretion either suspend CONTRACTOR's operations or activities under this Cont rac inate this Contract and withhold payment for Work performed on the Contract. CONTRACTC services pursuant to tf insurance as are requi 3 tractors who perform work or naintain the same types of � r Date: June 12, 2012 CITY OF IOWA CITY MEMORANDUM To: Tom Markus, City Manager From: Rick Fosse, Public Works Director Re: S. Dubuque Street - Storm Sewer and Water Main Improvement Project Introduction: The proposed project addresses flooding in the street as well as in and around properties along S. Dubuque Street and Wright Street between Prentiss Street and the Iowa Interstate Railroad. History /Background: Currently there are two small intakes on the north side of the railroad which are intended to collect stormwater drainage. This drainage is then piped under the railroad with small and non - standard pipes which outlet at grade into the S. Dubuque Street gutter line. The performance of this storm sewer has been marginal for many years, however the problem was intensified a few years ago when the Iowa Interstate Railroad raised the grade of the crossing on S. Dubuque Street. The higher grade does not allow the storm water to continue to flow south when the capacity of the intakes is exceeded. As a result, the excess water flows east causing related damage including undermining of sidewalks and parking, severe washout behind businesses, and ponding on the street. Discussion of Solutions: The existing storm sewer system lacks the capacity and reliability to serve the changed drainage conditions. Larger storm sewer pipes and intakes as well as additional intakes are necessary to improve the situation. While working in this location, and due to age and condition, it is recommended to replace the water main and asphalt overlay as part of this project. Financial Impact: The estimated construction cost for this project is $283,000 The project will be funded with Stormwater and Water revenue proceeds, and Road Use Tax (Pavement Rehabilitation). Recommendation: Staff recommends proceeding with the following schedule for this project: June 19 — Set Public Hearing July 10 — Hold Public Hearing (approve plans and specifications) June 31 —Award Project 3e(l)� CITY OF IOWA CITY 06 3e(2) 06-19-12 rrrr �� MEMORANDUM Date: June 12, 2012 To: Tom Markus, City Manager From: Michael Moran, Director of Parks and Recreation Re: Consider a resolution for the renovation of fields 1,2,3,4, at the Napoleon Park Girls Softball complex Introduction: This is a project for the renovation of fields 1, 2, 3 and 4 at Napoleon Park to promote better drainage, increase their playability, limit the damage to wet fields and increase the safety of the players. History /Background: When the existing fields were constructed funds were not available to complete all the grading and improvements envisioned for the complex. Over time many of the improvements have been added as part of the operating budget or through a cooperative effort with Iowa City Girls Softball. The improvements to date include additional backstops, dugout covers, pitching warm up areas, batting cages, lights on 6 fields and scoreboards. This grading /renovation project will be the last major improvement to the first four fields. It will raise them to an excellent level of playability throughout the year but especially during the always difficult spring season when we experience the dramatic weather that places staff in the position of getting fields ready before, after and sometimes during rain. Discussion of Solution: The fields require renovation to achieve appropriate slopes so water can move across the fields and drain away or be captured in a drain tile system and moved off of the field. There are areas on fields 3 and 4 that slope directly toward the infields where players stand anywhere from 6 to 14 inches above the infield. Correcting this situation will move the water away from the infield and across the outfield to either be captured in the drain the or moved off the field through surface movement. On fields 1 and 2 water is held on the outfield in low areas. Grading will fill these areas and establish the appropriate slope for water movement. Installation of drain tile will significantly assist with water movement as noted above. The project will be started at the conclusion of the Iowa City Girls Softball League and concluded by October 1, 2012 to minimize disruption to users and allowing new turf to be established before the start of a new season. June 12, 2012 Page 2 Recommendation: This project is recommended to correct the slope and drainage issues by correctly grading the fields to promote positive drainage off of the fields. The installation of drain tile is recommended as the important complementary process that increases the efficiency of the grades and slopes. Fiscal Impact: Funds ($180,000) were designated in the FY 10 budget for this project. Due to the effects of the 2008 flood and the amount of damage to City Park this project was postponed until work to correct all the damage was completed. The funds have been carried over to support the project in this fiscal year. AA42 Prepared by: Brian Boelk, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240, (319)356 -5437 RESOLUTION NO. 12 -298 RESOLUTION SETTING A PUBLIC HEARING ON JULY 10, 2012 ON PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE S. DUBUQUE STREET STORM SEWER AND WATER MAIN IMPROVEMENTS PROJECT, DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR PUBLIC INSPECTION. WHEREAS, funds for this project are available in the Stormwater Utility account #7700. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That a public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above - mentioned project is to be held on the 10th day of July, 2012, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing for the above -named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 3. That the copy of the plans, specifications, form of contract, and estimate of cost for the construction of the above -named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this 19th day of June , 20 12 ATTEST: CITY CrERK Pweng/res/sd ubuq uestss- setph. doc 6112 6-4 'a MAYOR Approved by 04cll� City Attorney's Office e6) Resolution No. 12 -298 Page 2 It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: x x X x x x x NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton 1g Prepared by: Terry Robinson, 410 E. Washington St., Iowa City, IA 52240, (319)356 -5106 RESOLUTION NO. 12 -299 RESOLUTION SETTING A PUBLIC HEARING ON JUNE 19, 2012 ON PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE RENOVATION OF FIELDS 1, 2, 3 & 4 AT THE NAPOLEON PARK GIRLS SOFTBALL COMPLEX PROJECT, DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR PUBLIC INSPECTION. WHEREAS, funds for this project are available in the Capital Improvements account #4163. BE IT RESOLVED by the City Council of the City of Iowa City, Iowa: 1. That a public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above - mentioned project is to be held on the 19th day of June 2012, as 7:00p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing for the above -named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 3. That the copy of plans, specifications, form of contract, and estimate of cost for the construction of the above -named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for inspection. Passed and approved this 19th day of June , 201. MAYOR ATTEST:_!//(asLr�� k) - f K� CITY UtERK Approved by City Attorney's Office Resolution No. 12-299 Page 2 It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: x --x- — x x _x — x _x NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton M� 06`19-TY' 6b Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12 -300 RESOLUTION AUTHORIZING CONVEYANCE OF A SINGLE FAMILY HOME LOCATED AT 702 GIBLIN DRIVE. WHEREAS, the UniverCity Neighborhood Partnership Program is -a joint effort between the University of Iowa and the City to encourage home ownership and reinvestment in designated neighborhoods surrounding the University of Iowa; and WHEREAS, the City has received a $1.25 million I -Jobs grant to assist in the acquisition and rehabilitation of twenty -six single family homes to provide affordable housing in designated neighborhoods surrounding the University of Iowa; and WHEREAS, Resolution 09 -384 authorized the City to acquire and rehabilitate properties consistent with the grant agreement for I -Jobs funds for the UniverCity Neighborhood Partnership Program; and WHEREAS, the City purchased and rehabilitated a single family home located at 702 Giblin Drive, Iowa City; and WHEREAS, the City has received an offer to purchase 702 Giblin Drive for the principal sum of $129,500 (the amount the City paid to acquire the home), plus the "carrying costs" of approximately $15,500, which are all costs incurred by the City to acquire the home, maintain it and sell it, including abstracting and recording fees, interest on the loan to purchase the home, mowing and snow removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and rehabilitate the home; and WHEREAS, this sale would provide affordable housing in a designated area surrounding the University of Iowa; and WHEREAS, on June 5, 2012, the City Council adopted a Resolution proposing to convey its interest in 702 Giblin Drive, authorizing public notice of the proposed conveyance, and setting the date and time for the public hearing; and WHEREAS, following the public hearing on the proposed conveyance, the City Council finds that the conveyance is in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that: 1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to execute a warranty deed conveying the City's interest in 702 Giblin Drive, legally described as part of Lot 9, Giblin's Subdivision, Iowa City, Iowa. Resolution No. 12 -300 Page 2 2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any actions necessary to consummate the conveyance required by law. It was moved by Champion and seconded by Dickens the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton Passed and approved this 19th day of June , 2012. MAYOR ATTEST: --�� CITY LERK Approved by City Attorney's Office "ug - Wre_?-- Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12 -301 RESOLUTION AUTHORIZING CONVEYANCE OF A SINGLE FAMILY HOME LOCATED AT 648 SOUTH LUCAS STREET. WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the University of Iowa and the City to encourage home ownership and reinvestment in designated neighborhoods surrounding the University of Iowa; and WHEREAS, the City has received a $1.25 million I -Jobs grant to assist in the acquisition and rehabilitation of twenty -six single family homes to provide affordable housing in designated neighborhoods surrounding the University of Iowa; and WHEREAS, Resolution 09 -384 authorized the City to acquire and rehabilitate properties consistent with the grant agreement for I -Jobs funds for the UniverCity Neighborhood Partnership Program; and WHEREAS, the City purchased and rehabilitated a single family home located at 648 South Lucas Street, Iowa City; and WHEREAS, the City has received an offer to purchase 648 South Lucas Street for the principal sum of $194,000 (the amount the City paid to acquire the home), plus the "carrying costs" of approximately $6,300, which are all costs incurred by the City to acquire the home, maintain it and sell it, including abstracting and recording fees, interest on the loan to purchase the home, mowing and snow removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and rehabilitate the home; and WHEREAS, this sale would provide affordable housing in a designated area surrounding the University of Iowa; and WHEREAS, on June 5, 2012, the City Council adopted a Resolution proposing to convey its interest in 648 South Lucas Street, authorizing public notice of the proposed conveyance, and setting the date and time for the public hearing; and WHEREAS, following the public hearing on the proposed conveyance, the City Council finds that the conveyance is in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that: 1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to execute a warranty deed conveying the City's interest in 648 South Lucas Street, legally described as Lot 7, Block 1, Strohm's Addition, Iowa City, Iowa. Resolution No. 12 -301 Page 2 2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any actions necessary to consummate the conveyance required by law. It was moved by Mims and seconded by Dickens the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton Passed and approved this 19th day of ,rune '2012. ATTEST: CITY CLERK Approved by City Attorney's Office 06-19 12 8 Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12 -302 RESOLUTION AUTHORIZING CONVEYANCE OF A SINGLE FAMILY HOME LOCATED AT 437 SOUTH GOVERNOR STREET. WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the University of Iowa and the City to encourage home ownership and reinvestment in designated neighborhoods surrounding the University of Iowa; and WHEREAS, the City has received a $1.25 million I -Jobs grant to assist in the acquisition and rehabilitation of twenty -six single family homes to provide affordable housing in designated neighborhoods surrounding the University of Iowa; and WHEREAS, Resolution 09 -384 authorized the City to acquire and rehabilitate properties consistent with the grant agreement for I -Jobs funds for the UniverCity Neighborhood Partnership Program; and WHEREAS, the City purchased and rehabilitated a single family home located at 437 South Governor Street, Iowa City; and WHEREAS, the City has received an offer to purchase 437 South Governor Street for the principal sum of $160,000 (the amount the City paid to acquire the home), plus the "carrying costs" of approximately $19,000, which are all costs incurred by the City to acquire the home, maintain it and sell it, including abstracting and recording fees, interest on the loan to purchase the home, mowing and snow removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and rehabilitate the home; and WHEREAS, this sale would provide affordable housing in a designated area surrounding the University of Iowa; and WHEREAS, on June 5, 2012, the City Council adopted a Resolution proposing to convey its interest in 437 South Governor Street, authorizing public notice of the proposed conveyance, and setting the date and time for the public hearing; and WHEREAS, following the public hearing on the proposed conveyance, the City Council finds that the conveyance is in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that: 1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to execute a warranty deed conveying the City's interest in 437 South Governor Street, legally described as part of Lot 14, Block 1, Berryhill's Second Addition, Iowa City, Iowa. Resolution No. 12 -302 Page 2 2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any actions necessary to consummate the conveyance required by law. It was moved by Champion and seconded by Payne_ the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion X Dickens x Dobyns x Hayek x Mims Payne x Throgmorton Passed and approved this 19th day of .Tune 12012. LA� MAYOR ATTEST: z CITY tLERK Approved by `C� - - I al City Attorney's Office a. Prepared by: Tracy Hightshoe, Associate Planner, 410 E. Washington St., Iowa City, IA 52240 319.356.5230 RESOLUTION NO. 12 -303 RESOLUTION ADOPTING IOWA CITY'S FYI ANNUAL ACTION PLAN AMENDMENT #5, WHICH IS A SUB -PART OF IOWA CITY'S 2011 -2015 CONSOLIDATED PLAN (CITY STEPS), AUTHORIZING THE CITY MANAGER TO SUBMIT SAID PLAN AND ALL NECESSARY CERTIFICATIONS TO THE U.S. DEPARTMENT OF HOUISNG AND URBAN DEVELOPMENT. WHEREAS, the U.S. Department of Housing and Urban Development requires the City of Iowa City, Iowa, to prepare and submit an Annual Action Plan as part of the City's Consolidated Plan (CITY STEPS) to plan for the use of federal funds to assist lower income residents with housing, jobs and services; and WHEREAS, the Iowa City Housing and Community Development Commission (HCDC) made a recommendation to amend the FY11 Annual Action Plan at its meeting on April 19, 2012 to allocate CDBG funds for recreational improvements at Fairmeadows Park; and WHEREAS, according to CITY STEPS, this is considered a substantial change to the FY11 Annual Action Plan and requires City Council approval; and WHEREAS, the City has disseminated information and received input at the April 19, 2012 HCDC meeting and the June 19, 2012 public hearing on the proposed Amendment #5; and WHEREAS, adoption of the Amended FY11 Annual Action Plan is required by the U.S. Department of Housing and Urban Development; and WHEREAS, the City Council finds that the public interest will be served by the adoption of the Amended FY11 Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The City of Iowa City's Amended FY11 Annual Action Plan, copies of which are on file in the Planning and Community Development Department, is hereby approved and adopted. 2. The City Manager of Iowa City is hereby authorized and directed to submit the applicable documentation for the City of Iowa City's Amended FY11 Annual Action Plan to the U.S. Department of Housing and Urban Development, and is further authorized and directed to provide all the necessary certifications required by the U.S. Department of Housing and Urban Development in connection with said Plan. Passed and approved this 19th day of June 2012. MAYOR ATTEST: Qitr� CITY'eLERK Approved by City Attorney's Office Resolution No. 12 -303 Page 2 It was moved by Dobyns and seconded by Mims the Resolution be adopted, and upon roll call there were: AYES: x x —X — K x x x NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton M�D 10� Prepared by: Josh Slattery, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5149 RESOLUTION NO. 12 -304 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CON- TRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE HIGHWAY 1 TRAIL PROJECT - ORCHARD STREET TO SUNSET STREET, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of cost for the above -named project was published as required by law, and the hearing thereon held; and WHEREAS, funds for this project are available in the Highway 1 Sidewalk/Trail - Riverside Drive to Sunset account # 4222. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: The plans, specifications, form of contract and estimate of cost for the above -named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above - named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and not more than 45 days before the date for filing the bids, for the receipt of bids for the construction of the above -named project in a newspaper published at least once weekly and having a general circulation in the city. 4. Sealed bids for the above -named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the City Hall, before 2:30 p.m. on the 24th day of July, 2012. At that time, the bids will be opened by the City Engineer or his designee, and thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7:00 p.m. on the 31St day of July, 2012, or at a special meeting called for that purpose. Passed and approved this 19th day of June ATTEST: 2k : :4 7(-'- CITYtLERK pweng\ res \Hwy1TrailProject- appp&s.doc 6/12 AXA zA MAYOR 20 12 App ved by I Attorney's Office Resolution No. 12 -304 Page 2 It was moved by Mims and seconded by Do ins the Resolution be adopted, and upon roll call there were: AYES: x x x x x x x NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton N4 9 116 Prepared by: Dave Panos, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5145 RESOLUTION NO. 12 -305 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE U.S. HIGHWAY 6 AND SYCAMORE STREET INTERSECTION IMPROVEMENT PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of cost for the above -named project was published as required by law, and the hearing thereon held. WHEREAS, funds for this project are available in the Sycamore Street - Highway 6 to City Limits account # 3811. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: The plans, specifications, form of contract, and estimate of cost for the above -named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above - named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and not more than 45 days before the date for filing the bids, for the receipt of bids for the construction of the above -named project in a newspaper published at least once weekly and having a general circulation in the city. 4. Sealed bids for the above -named project are to be received by the City of Iowa City, Iowa, at the office of the City Clerk at the City Hall, before 2:30 pm on the 19th day of July, 2012. At that time, the bids will be opened by the City Engineer or his designee, and thereupon refered to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7:00 p.m. on the 31St day of July, 2012, or at a later date and /or time as determined by the Director of Public Works or designee. Passed and approved this 19th day of June _'2012. Mayor Approved by: ATTEST: City-Clerk City Attorney's Office Resolution No. 12 -305 Page 2 It was moved by Dobyns and seconded by D; ekPnG the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton — aa1 9rr- 12 Prepared by: Melissa Clow, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356 -5413 RESOLUTION NO. 12 -306 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CON- TRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE PUBLIC WORKS WARM STORAGE BUILDING PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of cost for the above -named project was published as required by law, and the hearing thereon held; and WHEREAS, funds for this project are available in the General Obligation Bonds account #38389. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: 1. The plans, specifications, form of contract and estimate of cost for the above -named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above - named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and not more than 45 days before the date for filing the bids, for the receipt of bids for the construction of the above -named project in a newspaper published at least once weekly and having a general circulation in the city. 4. Sealed bids for the above -named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 19th day of July, 2012. At that time, the bids will be opened by the City Engineer or his designee, and thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7:00 p.m. on the 31St day of July, 2012, or at a special meeting called for that purpose. Passed and approved this 19th day of June , 20_11_ ATTEST: r/ ITY ERK pwengVes\pwwarmstorage- appp&s.doc 6/12 !n;�� MAYOR Approved by City Attorney's Office Resolution No. 12-306 Page 2 It was moved by Dickens and seconded by Payne the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek I_ Mims x Payne x Throgmorton I - - j 1310 Prepared by:Jason Havel,Public Works,410 E.Washington St.,Iowa City,IA 52240 (319)356-5410 RESOLUTION NO. 12-307 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CON- TRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE 2012 MUSCATINE AVENUE WATER MAIN IMPROVEMENTS PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of cost for the above-named project was published as required by law, and the hearing thereon held; and WHEREAS, funds for this project are available in the Muscatine (2700-3400)account#3202. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: 1. The plans, specifications, form of contract and estimate of cost for the above-named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above- named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice, not less than 4 and not more than 45 days before the date for filing the bids, for the receipt of bids for the construction of the above-named project in a newspaper published at least once weekly and having a general circulation in the city. 4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the City Hall, before 2:30 p.m. on the 6th day of July, 2012. At that time, the bids will be opened by the City Engineer or his designee, and thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7:00 p.m. on the 10t day of July, 2012, or at a special meeting called for that purpose. Passed and approved this 19th day of June , 20 12 MAYOR Approved by • ATTEST: 9C - 4 ) �z CITY RK City Attorney's Office pweng\res\2012muscavewmimprov-appp&s.doc 6/12 Resolution No. 12-307 Page 2 It was moved by Payne and seconded by Mims the Resolution be adopted,and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton NOTICE TO BIDDERS J STREET & SYCAMORE VIEW WATER MAIN SOUTHEAST JUNIOR HIGH SANITARY SERVICE PROJECT Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 2:30 P.M. on the 19`h day of June, 2012 Sealed proposals will be opened immediately thereafter by the City Engineer or designee. Bids submitted by fax machine shall not be deemed a "sealed bid" for purposes of this Project. Proposals received after this deadline will be returned to the bidder unopened. Proposals will be acted upon by the City Council at a meeting to be held in the Emma J. Harvat Hall at 7:00 P.M. on the 19th day of June, 2012, or at special meeting called for that purpose. The Project will involve the following: Construction of water main and service lines, and sanitary sewer main and manholes. All work is to be done in strict compliance with the plans and specifications prepared by VJ Engineering, of Iowa City, Iowa, which have heretofore been approved by the City Council, and are on file for public examination in the Office of the City Clerk. Each proposal shall be completed on a form furnished by the City and must be accompanied in a sealed envelope, separate from the one containing the proposal, by a bid bond executed by a corporation authorized to contract as a surety in the State of Iowa, in the sum of 10% of the bid. The bid security shall be made payable to the TREASURER OF THE CITY OF IOWA CITY, IOWA, and shall be forfeited to the City of Iowa City in the event the successful bidder fails to enter into a contract within ten (10) calendar days of the City Council's award of the contract and post bond satisfactory to the City ensuring the faithful performance of the contract and mainte- nance of said Project, if required, pursuant to the provisions of this notice and the other contract documents. Bid bonds of the lowest two or more bidders may be retained for a period of not to exceed fifteen (15) calendar days following award of the contract, or until rejection is made. Other bid bonds will be returned after the canvass and tabulation of bids is completed and reported to the City Council. The successful bidder will be required to furnish a bond in an amount equal to one hundred percent (100 %) of the contract price, said bond to be issued by a responsible surety approved by the AF -1 City, and shall guarantee the prompt payment of all materials and labor, and also protect and save harmless the City from all claims and damages of any kind caused directly or indirectly by the operation of the contract, and shall also guarantee the maintenance of the improvement for a period of five (5) years from and after its completion and formal acceptance by the City Council. The following limitations shall apply to this Project: Early Start Date: June 25, 2012 Completion Date: August 10, 2012 Liquidated Damages: $500.00 per day The plans, specifications and proposed contract documents may be examined at the office of the City Clerk. Copies of said plans and specifications and form of proposal blanks may be secured at the Office of the City Engineer of the City of Iowa City, 410 E, Washington Street, Iowa City, Iowa, by bona fide bidders. A $20 refundable fee is required for each set of plans and specifications provided to bidders or other interested persons. The fee shall be in the form of a check, made payable to Treasurer of the City of Iowa City. The refund will be issued 2 weeks after bid opening if re- usable plans and specifications are returned to the City of Iowa City. Prospective bidders are advised that the City of Iowa City desires to employ minority contractors and subcontractors on City projects. A listing of minority contractors can be obtained from the Iowa Department of Inspections and Appeals at (515) 281 -5796 and the Iowa Department of Transportation Contracts Office at (515) 239- 1422. Bidders shall list on the Form of Proposal the names of persons, firms, companies or other parties with whom the bidder intends to subcon- tract. This list shall include the type of work and approximate subcontract amount(s). The Contractor awarded the contract shall submit a list on the Form of Agreement of the proposed subcontractors, together with quantities, unit prices and extended dollar amounts. By virtue of statutory authority, preference must be given to products and provisions grown and coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully re- quired under Iowa Statutes. The Iowa reciprocal resident bidder preference law applies to this Project. The City reserves the right to reject any or all proposals, and also reserves the right to waive technicalities and irregularities. Published upon order of the City Council of Iowa City, Iowa. MARIAN K. KARR, CITY CLERK AF -2 Prepared by: Brian Boelk, Senior Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5437 RESOLUTION NO. RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE J STREET & SYCAMORE VIEW WATER MAIN — SOUTHEAST JUNIOR HIGH SANITARY SEWER PROJECT. WHEREAS, of has submitted the lowest responsible bid of $ for construction of the above -named project; and WHEREAS, funds for this project are available in the 1St Avenue /IAIS Railroad Crossings Improvements account # 3871. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The contract for the construction of the above -named project is hereby awarded to , subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above -named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 3. The City Engineer is authorized to execute change orders as they may become necessary in the construction of the above -named project. Passed and approved this day of '20 ATTEST: CITY CLERK It was moved by adopted, and upon roll call there were: AYES: pweng \res \awrdcon- JStreet &Sycamore -2012. MAYOR and seconded by Approved by City Attorney's Office the Resolution be NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton U 14 I■■...... Prepared by:Brian Boelk,Senior Civil Engineer,410 E.Washington St.,Iowa City,IA 52240(319)356-5437 RESOLUTION NO. RESOLUTION AWARDING CONTRACT AND AUTHORIZING TH MAYOR TO SIGN THE CITY CLERK TO ATTEST A CONT CT FOR CONSTRU TION OF THE J STREET & SYCAMORE VIEW W ER MAIN — SOUTHEAS UNIOR HIGH SANITARY SEWER PROJECT. WHEREAS, of has/submitted the lowest responsible bid of$ for construction of the above-named prpject; and WHEREAS, funds for this roject are available in the 1st AveFfue/IAIS Railroad Crossings Improvements account#387 NOW, THEREFORE, BE IT R. OLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: ' 1. The contract for the constr,ction of the above;riamed project is hereby awarded to , subject to the condition that awardee secure adequate performance and pay ,ent bond, insurance certificates, and contract compliance program statements. i 2. The Mayor is hereby authorized sigrl>"and the City Clerk to attest the contract for construction of the above-named p jept, subject to the condition that awardee secure adequate performance and payment Yid, insurance certificates, and contract compliance program statements. ;' 3. The City Engineer is authorized t /execut change orders as they may become necessary in the construction of the above- amed pro ct. Passed and approved this day of \\ , 20 . r \ / \ MAYOR \ / \ Approved by ATTEST: CITY CLERK City Attorney's Office It was moved by and seconded by \ the Resolution be adopted, and upon oll call there were: \ /AYES: NAYS: ABSLNT: Champion Dickens obyns ayek M s Pa Thro morton pwenglreslawrdcon-JStreet&Sycamore-2012. NO Prepared by: Brian Boelk, Senior Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5437 RESOLUTION NO. 12 -308 RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE J STREET & SYCAMORE VIEW WATER MAIN — SOUTHEAST JUNIOR HIGH SANITARY SEWER PROJECT. WHEREAS, Carter & Associates of Coralville, Iowa has submitted the lowest responsible bid of $258,061 for construction of the above -named project; and WHEREAS, funds for this project are available in the 1St Avenue /IAIS Railroad Crossings Improvements account # 3871. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The contract for the construction of the above -named project is hereby awarded to Carter & Associates, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above -named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 3. The City Engineer is authorized to execute change orders as they may become necessary in the construction of the above -named project. Passed and approved this 19th day of June , 20 12 $- ATTEST: 211, CITY ERK ved by 1q��2, City Attorney's Office It was moved by Mims and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: X X X X X X X pweng \res\awrdcon- JStreet &Sycamore -2012. NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton NOTICE TO BIDDERS 4� ROBERT A. LEE RECREATION CENTER IMPROVEMENTS — EAST ENTRY REMODELING PROJECT Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 2:30 P.M. on the 10 day of June, 2012. Sealed proposals will be opened immediately thereafter by the City Engineer or designee. Bids submitted by fax machine shall not be deemed a "sealed bid" for purposes of this Project. Proposals received after this deadline will be returned to the bidder unopened. Proposals will be acted upon by the City Council at a meeting to be held in the Emma J. Harvat Hall at 7:00 P.M. on the 19th day of June, 2012, or at a special meeting called for that purpose. The Project will involve the following: There will be a pre -bid meeting on Thursday, May 31, 2012 at 10:30 a.m. in Meeting Room B in the Robert A. Lee Recreation Center, located at 220 S. Gilbert Street, Iowa City. This project modifies and updates the east entry of the Robert A. Lee Recreation Center. This includes replacing the ramp, railing, and relocating the stairs, as well as extending the dock area. The existing structural slab is updated with the addition of concrete pavers, a light pole, and benches. Existing canopy lighting will be replaced and repopulated. The patio is extended by the addition of a lower patio to include light poles and concrete planters. ADA parking is relocated and improved. The existing driving path adjacent to the entry will become one directional to facilitate safety. Additional parking stripes and a curb will implement this update. The contractor will be responsible for all associated mechanical, structural and electrical work. All work is to be done in strict compliance with the plans and specifications prepared by Shive - Hattery, Inc. of Iowa City, Iowa, which have heretofore been approved by the City Council, and are on file for public exami- nation in the Office of the City Clerk. Each proposal shall be completed on a form furnished by the City and must be accompanied in a sealed envelope, separate from the one containing the proposal, by a bid bond executed by a corporation authorized to contract as a surety in the State of Iowa, in the sum of 10% of the bid. The bid security shall be made payable to the TREASURER OF THE CITY OF IOWA CITY, IOWA, and shall be forfeited to the City of Iowa City in the event the successful bidder fails to enter into a contract within ten (10) calendar days of the City Council's award of the contract and post bond satisfactory to the City ensuring the faithful performance of the contract and maintenance of said Project, if required, pursuant to the provisions of this notice and the other contract documents. Bid bonds of the lowest two or more bidders may be retained for a period of not to exceed fifteen (15) calendar days following award of the contract, or until rejection is made. Other bid bonds will be returned after the canvass and tabulation of bids is completed and reported to the City Council. The successful bidder will be required to furnish a bond in an amount equal to one hundred percent (100 %) of the contract price, said bond to be issued by a responsible surety approved by the City, and shall guarantee the prompt payment of all materials and labor, and also protect and save harmless the City from all claims and damages of any kind caused directly or indirectly by the operation of the contract, and shall also guarantee the maintenance of the improvement for a period of one (1) year(s) from and after its com- pletion and formal acceptance by the City Council. The following limitations shall apply to this Project: Specified Start Date: August 13, 2012; completion date: November 16, 2012 Liquidated Damages: $200 per day The plans, specifications and proposed contract documents may be examined at the office of the City Clerk. Copies of said plans and specifications and form of proposal blanks may be secured at the Office of Iowa City Reprographics, 114 S. Dubuque St., Iowa City, IA 52240, (319)338 -7872, by bona fide bidders. A $20.00 refundable fee is required for each set of plans and specifications provided to bidders or other interested persons. A $25.00 nonrefundable shipping and handling charge for plans sent through postal mail. The fee shall be in the form of a check, made payable to Iowa City Reprographics. Prospective bidders are advised that the City of Iowa City desires to employ minority contractors and subcontractors on City projects. A listing of minority contractors can be obtained from the Iowa Department of Economic Development at (515) 242 -4721 and the Iowa Department of Transportation Contracts Office at (515) 239 -1422. Bidders shall list on the Form of Proposal the names of persons, firms, companies or other parties with whom the bidder intends to subcontract. This list shall include the type of work and approximate subcontract amount(s). The Contractor awarded the contract shall submit a list on the Form of Agreement of the proposed subcontractors, together with quantities, unit prices and extended dollar amounts. By virtue of statutory authority, preference must be given to products and provisions grown and coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required under Iowa Statutes. The Iowa reciprocal resident bidder preference law applies to this Project. The City reserves the right to reject any or all proposals, and also reserves the right to waive technicalities and irregularities. Published upon order of the City Council of Iowa City, Iowa. MARIAN K. KARR. CITY CLERK Pwerw //noticstobidders/rectri=rove- eastside.doc Prepared by: Kumi Morris, Engineering Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5044 RESOLUTION NO. RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE ROBERT A. LEE RECREATION CENTER IMPROVEMENTS — EAST ENTRY REMODELING PROJECT. WHEREAS, of has submitted the lowest responsible bid of $ for construction of the above -named project; and WHEREAS, funds for this project are available in the Recreation Center Improvement account #4316. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The contract for the construction of the above -named project is hereby awarded to , subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above -named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 3. The Director of Parks and Recreation Department is authorized to execute change orders as they may become necessary in the construction of the above -named project. Passed and approved this day of 20 ATTEST: CITY CLERK It was moved by and upon roll call there were: AYES: Pweng /res /awardcon rectr improve - eastentry.doc 6/12 MAYOR and seconded by Approved by City Attorney's Office the Resolution be adopted, NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton 15 V . 06-19-12 15 Prepared by:Kumi Moms,Engineering Division,410 E.Washington St.,Iowa City,IA 52240(319)356-5044 RESOLUTION NO. RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE ROBERT A. LEE RECREATION CENTER IMPROVEMENTS — EAST ENTRY REMODELING PROJECT. WHEREAS, of has submitted the lowest reslonsible bid of $ for construc n of the above-named project;and WHEREAS,funds for this prof:ct are available in the Recreation Center Improvement count#4316. NOW, THEREFORE, BE IT RE`0 LVED BY THE CITY COUNCIL OF THE CITY/OF IOWA CITY, IOWA, THAT: 1. The contract for the con truction of the above-named project is hereby awarded to , subject to the condition that awardee secure adequate performance and payment •• d, insurance certificates, aAd contract compliance program statements. 2. The Mayor is hereby authorized to '•n and the City CI c to attest the contract for construction of the above-named project, subject to e condition thay wardee secure adequate performance and payment bond, insurance certificates,a d contract compliance program statements. 3. The Director of Parks and Recreation D.•artm7f t is authorized to execute change orders as they may become necessary in the constructio of e above-named project. Passed and approved this day of ,20 MAYO" \ Approved by ATTEST: CITY CLERK \ City Attorneys Office It was moved by and seconded by the Resolution be adopted, and upon roll call there were: \ AYES: NAYS: ABSENT: \ Champion \ Dickens \ Dobyns \ Hayek `_Mims \Payne Throgmorton Pweng/res/award .n rectr improve-eastentry.doc 6/12 .9 Prepared by: Kum! Morris, Engineering Division, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5044 RESOLUTION NO. 12 -309 RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE ROBERT A. LEE RECREATION CENTER IMPROVEMENTS — EAST ENTRY REMODELING PROJECT. WHEREAS, North Construction LLC of Muscatine, Iowa, has submitted the lowest responsible bid of $137,892.00 for construction of the above -named project; and WHEREAS, funds for this project are available in the Recreation Center Improvement account #4316. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The contract for the construction of the above -named project is hereby awarded to North Construction LLC, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above -named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. The Director of Parks and Recreation Department is authorized to execute change orders for their Department Projects as they may become necessary in the construction of the above -named project. Passed and approved this 19th day of June , 20 12 MAYOR l Approved by ATTEST: CI LERK City Attorney's Office It was moved by Champion and seconded by Dobyns the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X_ Champion _X Dickens X Dobyns X Hayek _$_ Mims X Payne _ y Throgmorton Pweng /res /awardcon rectr improve- eastside.doc 6/12 i*49UTHORITY sin 1G,17 Phone. (319) 356.54 FAX. (319) 356.5459 TDD. (319) 356.5404 410 E. flasbington Stmt • Iowa Goo • Iowa • 52240.1826 DATE: Thursday, June 13, 2012 TO: Tom Markus, City Manager FROM: Steven J. Rackis, Housing Administrator SUBJECT: Updates and amendments to the Iowa City Housing Authority's Housing Choice Voucher (HCV) Administrative Plan and Admissions and Continued Occupancy (ACOP) Plan The Iowa City Housing Authority is proposing changes to the following Sections of our Housing Choice Voucher (HCV) Administrative Plan and Admissions and Continued Occupancy (ACOP) Plan: HCV: Section 4.8 Section 8 Tenant Selection Criteria Section 5.1 Waiting List Admissions and Special Admissions Section 5.2 Preferences ACOP: 8.4 Public Housing Tenant Selection Criteria 10.1 Preferences The Housing and Community Development Commission reviewed and approved these changes at their May 17, 2012, meeting. 1. Proposed changes to HCV Section 4.8 /ACOP Section 8.4 Family/Tenant Selection Criteria: Under federal regulations found at 24 CFR 982.552 and 24 CFR 960.204, the Housing Authority must deny certain applicants and it has the discretion to deny others based on certain actions or inactions by family members. The Housing Authority proposes the following changes to our selection criteria that falls into the may deny category (complete selection and termination criteria are attached): Add: • Burglary in the 2nd degree or higher as defined in Chapter 713 of the Iowa Code or a law of any city, county, or state that substantially corresponds to this section (3 -year period of ineligibility). Modify: • Change the period of ineligibility from 3 -years to 1 -year for the following offenses: ➢ Disorderly house as defined in Section 8 -5 -5 of the City Code or a law of any city, county, or state that substantially corresponds to this section; SRackis Page 1 6/11/2012 ➢ Disorderly conduct as defined in Section 8 -5 -1 of the City Code or section 723.4 of the Iowa Code or a law of any city, county, or state that substantially corresponds to this section. Disorderly conduct that does not constitute violent criminal behavior. No change in intent, new language: If the family currently owes rent or other amounts to the a) ICHA; b) to any other Housing Authority; c) to other Federally assisted housing under the 1937 Act (as amended); d) Federally assisted housing as defined in 24 CFR 5.100; e) any other affordable housing program (1 -year period of ineligibility). 2. Proposed changes to HCV Section 5.1 Waiting List Admissions and Special Admissions: The Housing Authority may admit an applicant for participation in the program either as a special admission or as a waiting list admission. If HUD awards funding that is targeted for families with specific characteristics such as families living in specific units (e.g. HUD project based opt out), the Iowa City Housing Authority will use the special admission for those families. Remove: • Family Unification Program (FUP) as a Special Admission In 1998, the Iowa City Housing Authority received funding to operate a Family Unification Program in partnership with the Iowa Department of Human Services. This funding was "rolled into' the regular HCV program in 1999 and HUD stopped tracking these vouchers. While we continued this program through this 2012, we now recommend removing FUP as a Special Admission. 3. Proposed changes to HCV Section 5.2 /ACOP 10.1 Preferences current Displaced: Individuals or families displaced by government action or whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws. Displaced: Individuals or families displaced by government action or whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws. This preference is only for disaster victims in the State of Iowa. SRackis Page 2 6/11/2012 Prepared by: Steven J. Rackis, ICHA Administrator 410 E. Washington St., Iowa City, IA 52240; 319-887 - An4r, Nl4% 06-19-12- 16 j RESOLUTION NO. 12 -310 RESOLUTION ADOPTING THE IOWA CITY HOUSING AUTHORITY PUBLIC HOUSING ADMISSIONS AND CONTINUED OCCUPANCY POLICY (ACOP). WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority and the Department of Housing and Urban Development requires the adoption of a Public Housing Admissions and Continued Occupancy Policy (ACOP); WHEREAS, the proposed changes to tenant selection criteria and waiting list preferences constitute a significant amendment to the ACOP; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The ACOP, with updates and amendments, be adopted as the policy of the Iowa City Housing Authority; and, 2. The City Clerk is hereby authorized and directed to certify appropriate copies of this resolution together with any necessary certifications as may be required by the Department of Housing and Urban Development. Passed and approved this 19th day of June , 2012 Mayor J) Approved by ATTEST: 4 5`C � -4 City OeTk City Attorney's Office It was moved by aims and seconded by Payne the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton n�49 4499A(bven .I. Rackis, JC'HA Administrator 410 E. Washington St., Iowa City, IA 52240; 319-887 - &NUe 2 RESOLUTION NO. 12 -311 RESOLUTION ADOPTING THE IOWA CITY HOUSING AUTHORITY HOUSING CHOICE VOUCHER (HCV) ADMINISTRATIVE PLAN. WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority and the Department of Housing and Urban Development requires the adoption of a Housing Choice Voucher (HCV) Administrative Plan; WHEREAS, the proposed changes to tenant selection criteria, waiting list special admissions, and waiting list preferences constitute a significant amendment to the HCV Administrative Plan; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The HCV Administrative Plan, with updates and amendments, be adopted as the policy of the Iowa City Housing Authority; and, 2. The City Clerk is hereby authorized and directed to certify appropriate copies of this resolution together with any necessary certifications as may be required by the Department of Housing and Urban Development. Passed and approved this 19th day of June , 20 12 ATTEST: i City C er ,A 3N (1 n Mayor Approved b City Attorney's Office It was moved by Dickens and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: g Champion g Dickens x Dobyns g Hayek g Mims x Payne _ x Throgmorton M� 78 Prepared by: Sarah E. Holecek, Vt Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12-112 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST THE FIRST AMENDMENT TO AN AGREEMENT FOR THE IMPROVEMENT OF LAND FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA AND MARC MOEN FOR 118 EAST COLLEGE STREET WHEREAS, in furtherance of the objectives of the Urban Renewal Act, and consistent with the objectives of the Urban Renewal Plan for the Central Business District, the City entered into an Agreement for the Improvement of Land for Private Redevelopment (the "Agreement ") with Marc Moen (the Redeveloper); and WHEREAS, pursuant to said Agreement, the Redeveloper agreed to construct and operate certain Minimum Uses and Improvements, (as defined in Exhibit "B" within the Agreement), on real property located at 118 East College Street, consisting of retail and class "A" office space; and WHEREAS, consistent with the City Council's stated goal of converting downtown bar spaces to retail and office uses, the Agreement stated that the redeveloped property shall not be used for an "eating and drinking establishment ", "restaurant" or. "residential use ", whether accessory, permitted or principal, as defined by the Iowa City zoning code; and WHEREAS, the Redeveloper has proposed to include a. non - profit organization, "FilmScene ", dedicated to enhancing the cultural vitality of the Iowa City area through film with the goal of operating a full -time cinema as a use for a portion of the redeveloped property; and WHEREAS, FilmScene's business model includes offering catered food, beer and wine as components of its operation, the inclusion of which could violate the terms of the Agreement if considered an accessory "eating and drinking establishment" under the Iowa City zoning code; and WHEREAS, to facilitate the inclusion of a cinema in the downtown and thereby enhance the availability of cultural experiences, staff recommends approval of an amendment to the Agreement that will allow FilmScene to locate on the subject property while preserving its ability to serve catered food, wine and beer under its business model; and WHEREAS, City Council finds it is in the public interest to amend the Agreement to expand and diversify cultural uses in the downtown. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The Mayor is authorized to sign and the City Clerk to attest the First Amendment to an Agreement for the Improvement of Land for Private Redevelopment between the City of Iowa City and Marc Moen for 118 East College Street attached hereto and incorporated herein. Resolution No. 12 -312 Page 2 2. The City Clerk is hereby directed to record said amendment along with a certified copy of the resolution upon passage of this resolution at the Redeveloper's expense. Passed and approved this 19 j-h day of June -,20 12 . l99 MAYOR may, j Ap �d ATTEST: / / a-Ae, CITY ERK City Attor y' . Offce It was moved by Mims adopted, and upon roll call there were: AYES: NAYS: and seconded by ABSENT: Dickens the Resolution be X Dobyns _ X Champion X Dickens X Hayek X Mims X Payne X Throgmorton Saratdecodev /118 College (former vito's) /118ECollege First amendment to TIF Res.doc Prep'd by: Sarah E. Holecek, First Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 FIRST AMENDMENT TO AN AGREEMENT FOR THE IMPROVEMENT OF LAND FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA AND MARC MOEN FOR 118 EAST COLLEGE STREET This First Amendment to the Agreement for the Improvement of Land for Private Redevelopment by and between the City of Iowa City, Iowa and Marc Moen for 118 East College Street is hereby made and executed by the City of Iowa City (hereinafter "City"), 410 East Washington Street, Iowa City, Iowa 52240 and Marc Moen, (Redeveloper"), having an office at 221 East College Street, Iowa City, Iowa. WHEREAS, in furtherance of the objectives of the Urban Renewal Act, and consistent with the objectives of the Urban Renewal Plan for the Central Business District, the City entered into an Agreement for the Improvement of Land for Private Redevelopment (the "Agreement') with Marc Moen (the Redeveloper); and WHEREAS, pursuant to said Agreement, the Redeveloper agreed to construct and operate certain Minimum Uses and Improvements, (as defined in Exhibit "B" within the Agreement), on real property located at 118 East College Street, consisting of retail and class "A" office space; and WHEREAS, consistent with the City Council's stated goal of converting downtown bar spaces to retail and office uses, the Agreement stated that the redeveloped property shall not be used for an "eating and drinking establishment ",' °restaurant" or "residential use ", whether accessory, permitted or principal, as defined by the Iowa City zoning code; and WHEREAS, the Redeveloper has proposed to include a non - profit organization, "FilmScene ", dedicated to enhancing the cultural vitality of the Iowa City area through film with the goal of operating a full -time cinema as a use for a portion of the redeveloped property; and WHEREAS, FilmScene's business model includes offering catered food, beer and wine as components of its operation, the inclusion of which could violate the terms of the Agreement if considered an accessory "eating and drinking establishment" under the Iowa City zoning code; and WHEREAS, to facilitate the inclusion of a cinema in the downtown and thereby enhance the availability of cultural experiences, the City Council has approved an amendment to the Agreement that will allow FilmScene to locate on the subject property while preserving its ability to serve catered food, wine and beer under its business model; and WHEREAS, the parties to the original Agreement wish to memorialize the terms under which FilmScene may operate within the minimum improvements under the amended agreement. NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THEIR MUTUAL PROMISES AND CONVENANTS, THE PARTIES HEREBY AGREE AS FOLLOWS: 1. Exhibit "B °, "Minimum Improvements" of the original Agreement for the Improvement of Land for Private Redevelopment by and between the City of Iowa City and Marc Moen for Redevelopment of 118 East College Street, Iowa City, (a memorandum of which is recorded at Book 4844, Pages 871- 873) is hereby amended as follows: Exhibit "B ", Minimum Improvements and Uses, is hereby amended to read as follows: "Minimum Improvements" shall mean the construction of a structure to include property acquisition costs and costs for construction and installation of class A office space and /or retail space on the upper floor, installation of an elevator for accessibility, new HVAC equipment and ducting, new roof, new exterior fagade, and specified commercial /retail space, which property shall not be used for an "eating and drinking establishment ", "restaurant" or °residential use ", whether accessory, permitted or principal, as defined by the Iowa City zoning code, with all related site improvements. Minimum Improvements shall not include increases in assessed or actual value due to market factors. However, notwithstanding any provision herein to the contrary, a portion of the 1St floor of the property (not to exceed 40% of the gross square footage of the 1 st floor) may be used for a movie theater /cinema by the non - profit organization °FilmScene ". A kitchen shall not be permitted but the theater may serve food, beer and wine during its hours of operation subject to applicable licensing requirements. 2. The parties hereto acknowledge and agree that only Exhibit "B °, which outlines the Minimum Improvements and Uses to be constructed and operated at 118 East College Street have been modified by this First Amendment to the Agreement for the Improvement of Land for Private Redevelopment by and between the City of Iowa City and Marc Moen for 118 East College Street, Iowa City, Iowa, and all other terms and conditions outlined in the Agreement, as amended, shall continue in full force and effect. DATED this /? _ day of JuNk-- , 2012. MARC MOEN, STATE OF IOWA ) )ss: JOHNSON COUNTY ) CITY OF IOWA CITY, IOWA By: Matthew J. ATTEST: By: ZUi4�n2 i5 �ziL ian K. Karr, City Clerk On this 12 _ day of �SckNG , 2012, before me, the undersigned, a Notary Public in and for said County and State, personally appeared Matthew J. Hayek 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, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation by authority of City Council of said municipal corporation; and that the said Matthew J. Hayek and Marian K. Karr acknowledged the execution of said instrument to be the voluntary act and deed and said municipal corporation, by it and by them voluntarily executed. 4"A SONDRAE FORT i t Commission Number 159791 My Commission Expires 0 S /,?/ .7 01.5_ STATE OF IOWA ) ) ss: JOHNSON COUNTY ) Notary Public in and for the State of Iowa On this / L�— day of -Tcr h c 2012, before me, a notary public in and for the State of Iowa, personally appeared Marc Moen, to me personally known, who being by me duly sworn did say that he is the Redeveloper named above and the execution of the foregoing is the voluntary act and deed of said Redeveloper, by it and by him voluntarily executed. fPQ1AC m� JOYCE ORTE 9 COMMISSION NO. 160170 P blic in and for the State of Iowa *t. i rl coy +.�,ti�tssro IREs F VA Prep'd by: Sarah E. 111016cek, First Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 FIRST AMENDMENT Ti? AN AGREEMENT FOR THE IMPROVEMENT OF LAND FOR PRIVATE REDEVELO ENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA AND MA MOEN FOR 118 EAST COLLEGE STREET This First Amendmer4 to the Agreement for the/ Improvement of Land for Private Redevelopment by and betty n the City of Iowa City, owa and Marc Moen for 118 East College Street is hereby mad and executed by the ity of Iowa City (hereinafter "City "), 410 East Washington Street, wa City, Iowa 522 and Marc Moen, (Redeveloper "), having an office at 105 East Col ge Street, Iowa C' y, Iowa. WHEREAS, in furtherance of the o jectives of the rban Renewal Act, and consistent with the objectives of the Urban Rene al Plan for he Central Business District, the City entered into an Agreement for the I provemen of Land for Private Redevelopment (the "Agreement ") with Marc Moen (the Re eveloper ; and WHEREAS, pursuant to said Agree nt, a Redeveloper agreed to construct and operate certain Minimum Uses and Im ov ments, (as defined in Exhibit "B" within the Agreement), on real property located at 1 East College Street, consisting of retail and class "A" office space; and WHEREAS, consistent with the City Co nc 's stated goal of converting downtown bar spaces to retail and office uses, the Agr _me stated that the redeveloped property shall not be used for an "eating and drinkin estab hment ", "restaurant" or "residential use ", whether accessory, permitted or princi I, as de i ed by the Iowa City zoning code; and WHEREAS, the Redeveloper has proposed t include a non - profit organization, "FilmScene ", dedicated to enhancin the cultural vit ty of the Iowa City area through film with the goal of operating a full -ti a cinema as a u for a portion of the redeveloped property; and / WHEREAS, FilmScene's busine model includes offering atered food, beer and wine as components of its operation, a inclusion of which coLN violate the terms of the Agreement if considered an acc ssory "eating and drinking es blishment" under the Iowa City zoning code; and t WHEREAS, to facilitate the inclusion of a cinema in the downtown and thereby enhance the availability of cultural experiences, the City Council has approved an amendment to the Agreement that will allow FilmScene to locate on the subject property while preserving its ability to serve catered food, wine and beer under its business model; and WHEREAS, the parties to the original Agreement wish to memorialize the terms under which FilmScene may operate within the minimum improvements under the amended agreement. NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THEIR MUTUAL PROMISES AND CONVENANTS, THE PARTIES HEREBY AGREE AS FOLLOWS: Exhibit "B ", "Minimum Improvements" of the original greement for the Improvement of Land for Priv a Redevelopment by an between the City of Iowa City and Marc Moen fo Redevelopment of 11 East College Street, Iowa City, (a memorandum of which is recorded at ook 4844, Pages 871- 873) is hereby amended as foll ws: Exhibit "B ", Minimum I follows: "Minimum Improvements" shal include property acquisition cos of class A office space and /or re elevator for accessibility, new F exterior facade, and specified c not be used for an "eating "residential use ", whether acces Iowa City zoning code, with Improvements shall not include market factors. However, contrary, a portion of the 1 st o� gross square footage of the st fl by the non - profit organizaf n "F but the theater may sere food, subject to applicable tic sing re 2. The parties hereto cknowledg outlines the Mini m Improve operated at 118 ast College Amendment to t e Agreement Redevelopment y and between East College reet, Iowa City, outlined in the greement, as am nts and Uses, is/hereby amended to read as mean the construction of a structure to and co for construction and installation it spac on the upper floor, installation of an AC a ipment and ducting, new roof, new mm cial /retail space, which property shall J rinking establishment ", "restaurant" or permitted or principal, as defined by the related site improvements. Minimum creases in assessed or actual value due to vithstanding any provision herein to the of the property (not to exceed 40% of the )r) may be used for a movie theater /cinema ,nScene ". A kitchen shall not be permitted )eer and wine during its hours of operation jirements. and agree that only Exhibit "B ", which ents and Uses to be constructed and >treet have been modified by this First r the Improvement of Land for Private City of Iowa City and Marc Moen for 118 wa, and all other terms and conditions i ed, shall continue in full force and effect. DATED this day of MARC MOEN, REDEVELOPER Marc Moen, Redeveloper STATE OF IOWA ) )ss: JOHNSON COUNTY ) On this day of , Public in and for said County and State, per Marian K. Karr, to me personally known, who are the Mayor and City Clerk, respe/unicip within and foregoing instrument; that corporation; that said instrument wa corporation by authority of City Cou Matthew J. Hayek and Marian K. Ka be the voluntary act and deed and sai executed. STATE OF IOWA ) ss: JOHNSON COUNTY ) 2012. CITY OF IOWA CITY, IOWA By: Matthew J ATTEST: M k, Mayor an K. Karr, City Clerk i1 , before me, the undersigned, a Notary ally appeared Matthew J. Hayek and )eing by me duly sworn, did say that they said municipal corporation executing the fixed thereto is the seal of said municipal nd sealed on behalf of said municipal municipal corporation; and that the said dged the execution of said instrument to I corporation, by it and by them voluntarily NotarAPublic in and for the State of Iowa On this day of 2012, before me, a notary public in and for the of Iowa, personally appeared`Marc Moen, to me personally known, who being by/�ne duly sworn did say that he is thy, Redeveloper named above and the execution of a foregoing is the voluntary act and deed of said Redeveloper, by it and by him voluntarily executed. Notary Public in and for the State of Iowa Celt / text: 3 t9.430.3010 Sarah Holecek First Assistant City Attorney 410 E. Washington Street Iowa City, Iowa 52240 MARC B. MOEN 221 F. Coi.i.EGE STREET IOWA CITY, IOWA 52240 Kieft c,,,,"4.nioeiigi-oup.co,iii June 5, 12 RE: 118 E. College Street —Agreement for The Improvement of Land and for Private Redevelopment I am requesting an amendment to the above referenced Redevelopment Agreement. facsi'mile: 319.359.6778 Fi1mScene is seeking temporary space as it works toward building a permanent cinema space in downtown Iowa City. FilmScene is a nonprofit organization dedicated to enhancing the cultural vitality of the Iowa City area through the presentation and discussion of film as an art form. With programming that entertains, inspires, and educates, Fi1mScene works to build and connect the community through film. FilmScene's primary goal is the operation of a full-time cinema in downtown Iowa City that will showcase the best in American independent and international filmmaking in a vibrant and inviting setting. The City of Iowa City and University of Iowa recently commissioned a study which found Movie Theater to be the top choice among all. consumers for merchandise desired downtown. (Downtown Iowa City, Iowa Strategic Assessment, December 2011, by DIVARIS Real Estate, p. 90)_ There are a number of successful independent cinemas in other cities. While Film Scene is not interested in operating a restaurant, it is important to its viability that it be able to offer food (which would be catered in), wine and beer. These components have proven to be important to the success of Cinemas in. other cities and are included in FilmScene's business model. While the focus of FilmScene will not be food or alcohol, these are necessary components. Specifically I request that Exhibit ``I3" (Minimum Uses and Improvements) to the above referenced Redevelopment Agreement be amended to add the following: "However, notwithstanding any provision herein to the contrary, a portion of the I' floor of the property (not to exceed 40% of the gross square footage of the I st floor) may be used for a movie theater. A kitchen shall not be permitted but the theater may serve food, beer and wine, during its hours of operation subject to applicable licensing requirements." The attached plan of the first level plan shows, in red, the general area where the theater component would be located. It is behind the elevator in an area that has no glass frontage. I would like to get this on the Council Agenda as soon as possible so I can explore this location in earnest with FilmScene as a temporary home for it's Cinema, Please let me know what you need from to proceed with this request. Thank you very much for your assistance. CITY OF IOWA CITY 19 Date: June 8, 2012 To: Tom Markus, City Manager From: Tracy Hightshoe, Community Development Planner Re: CDBG Economic Development Funding Recommendation (Blitz Boxing and Fitness, LLC Introduction: The City Council annually allocates Community Development Block Grant (CDBG) Funds from the U.S. Department of Housing and Urban Development for eligible economic development activities including financial assistance to micro - enterprises or small businesses. Chad and Mandi Wiltz and Ibrahim Funmilayo, owners of (Blitz Boxing and Fitness, request CDBG financial assistance for working capital to open a new fitness club at Sycamore Mall. The attached resolution allocates these funds to (Blitz Boxing and Fitness. History /Background: The first TITLE Boxing Club opened in 2008 in Kansas City. The applicants paid $35,000 to the franchise to protect franchise ownership in Iowa City, Coralville, and North Liberty. The fitness club uses traditional boxing and kickboxing techniques to achieve fitness and health benefits. The business qualifies under the Community Development Block Grant program as the business will create three full time equivalent jobs where 51 % of the positions will be held by or made available to low -to- moderate income residents. These positions include a full time general manager and three to five sales associates. In addition to employees, the business will contract with area personal trainers for classes. Discussion of Solution: Applicant secured a $150,000 SBA loan through Cedar Rapids Bank and Trust. The owners have invested $35,000 to purchase the franchise and estimate start-up costs of $185,000, not including the franchise fee previously paid. CDBG assistance is requested to provide sufficient working capital during the start-up months. The business will be located in the Sycamore Mall. Recommendation: The Council Economic Development Committee recommended funding this request with the following terms: $35,000 loan, 1% interest to be repaid within 7 years. The loan will be partially secured by a mortgage on the owner's home, lien on the owner's personal vehicles and a lien on all business assets. These terms reduce the City's risk and are in line with what the City has provided to similar applicants in this program. Due to the quality of the business plan and a history of paying loan obligations, the committee recommended funding this business even though the loan will not be fully secured. Funding Source: Approved under the FY12 budget — CDBG Economic Development Fund. M-� Prepared by Tracy Hightshoe, Associate Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5230 RESOLUTION NO. 12 -313 RESOLUTION APPROVING FUNDING FOR (BLITZ BOXING AND FITNESS, LLC FROM IOWA CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT - ECONOMIC DEVELOPMENT FUND AND AUTHORIZING THE CITY MANAGER TO ACT AS CHIEF ADMINISTRATIVE OFFICER AND SUBMIT ALL NECESSARY DOCUMENTATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, the City of Iowa City has a Community Development Block Grant (CDBG) funded Economic Development Fund; and WHEREAS, the CDBG Economic Development Fund was approved within Iowa City's 2011- 2015 Consolidated Plan (CITY STEPS), as amended, as well as the FY12 Annual Action Plan, a subpart of CITY STEPS, to plan for the use of federal funds to assist lower income residents with housing, jobs and services; and WHEREAS, the City has disseminated information and the Iowa City City Council Economic Development Committee held a public meeting to discuss said project; and WHEREAS, the Iowa City City Council Economic Development Committee has recommended that the project submitted by IBlitz Boxing and Fitness LLC be allocated $35,000; and WHEREAS, the Iowa City City Council Economic Development Committee has recommended that these funds be in the form of a partially secured, seven -year (7 year) amortized loan with an interest rate of 1 %; and WHEREAS, the City Council finds that the public interest will be served by an allocation of CDBG funding for said project as the business will create three full time equivalent positions, of which 51 % will be held by or available to low -to- moderate income persons. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The City Manager is hereby authorized and directed to provide all the necessary certifications or documents required by the U.S. Department of Housing and Urban Development. 2. The City Manager is authorized to execute, terminate or amend an agreement(s) with (Blitz Boxing and Fitness, LLC for activities in connection with this allocation of public fundscup Passed and approved this 19th day of June MAYOR ATTEST:tt� CITY ERK 2012. Approved by 99k'�� r- - + _t X City Attorney's Office /7 Resolution No. 12 -31 Page 2 It was moved by Mims and seconded by Dickens the Resolution be adopted, and upon roll call there were: AYES: x —x — x x X x X NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton 0 Prepared by: Eleanor M. Dilkes, City Attorney,410 E.Washington St., Iowa City, IA 52240, 356-5030 RESOLUTION NO. 12-314 RESOLUTION APPROVING AN AGREEMENT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA, AND MDK DEVELOPMENT, L.L.C. WHEREAS, MDK Devlopment L.L.C. ("Developer") submitted a "Proposal for the Redevelopment of 1020 William Street and 2611 Muscatine Avenue," which proposal consists of a medical office building, (hereinafter, "the Project"); and WHEREAS, this property is located within the Towncrest Urban Renewal Area, and subject to the Towncrest Urban Renewal Plan ("Plan"), approved by City Council on December 7, 2010 (Resolution# 10-509); and WHEREAS, the Economic Development Committee considered said application and voted to recommend approval to the City Council; and WHEREAS, City Staff has reviewed the application and proposed Developer's Agreement and recommends approval to the City Council; and WHEREAS, in exchange for the grant funds, the property owner has agreed to requirements stipulating the future use of the property and a minimum assessment amount of$2,225,000; and WHEREAS, it is the determination of this City Council that acceptance of the proposal of the Developer and approval of the Agreement for Private Redevelopment is in the public interest of the residents of the City and is consistent with the purposes and objectives of the Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. That the attached Agreement for Private Redevelopment by and between the City of Iowa City, Iowa and MDK Development, L.L.C., as well as the Minimum Assessment Agreements incorporated by reference therein, is in the public interest of the residents of Iowa City. 2. That said Agreement is consistent with and authorized by the Urban Renewal Plan and all applicable State and federal laws, including but not limited to Iowa Code Chapters 15A and 403; and 3. That the Mayor is authorized and directed to execute the Agreement and the City Clerk is authorized and directed to attest his signature and to affix the seal of the City Clerk; 4. That the Mayor and City Clerk be and they are hereby authorized and directed to take all such actions and do all such things as they shall determine to be necessary or appropriate to ensure the City's performance as provided therein. Resolution No. 12-314 Page 2 5. That the City Clerk is hereby authorized to record the Memorandum of Agreement in the Office of the Recorder, Johnson County, Iowa, at Developer's expense. 6. That the City Manager is hereby authorized to administer the terms of the Agreement for Private Redevelopment. Passed and approved this 19th day of June , 2012. MAYOR �J roved by 0)21 ATTEST: 9C CI LERK City Attorney's Office 1 7-912_ Resolution No. 12-314 Page 3 It was moved by Champion and seconded by Throgmorton the Resolution be adopted,and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns Hayek x Mims _X_ Payne x Throgmorton AGREEMENT FOR PRIVATE REDEVELOPMENT By and Between THE CITY OF IOWA CITY, IOWA, and MDK DEVELOPMENT L.L.C. 1 Exhibit A Map of Urban Renewal Area Exhibit B Legal Description of Urban Renewal Area Exhibit C Redeveloper's Proposal Exhibit D Minimum Improvements and Uses Exhibit E Legal Description of Redevelopment Property Exhibit F Minimum Assessment Agreement - 1020 William St. & 2611 Muscatine Ave. Exhibit G Memorandum of Agreement Exhibit H Opinion of Counsel Exhibit I Assignment and Assumption Agreement 2 INTRODUCTION THIS AGREEMENT FOR PRIVATE REDEVELOPMENT is by and between the City of Iowa City, Iowa, a municipality ("City"), established pursuant to the Code of Iowa of the State of Iowa and acting under the authorization of Iowa Code Chapter 15A and 403 (2011), as amended, ("Urban Renewal Act") and MDK Development L.L.C. (hereinafter referred to as "Redeveloper"), a limited liability company organized under the laws of the State of Iowa and having an office for the transaction of business at 711 S. Gilbert St., Iowa City, Iowa. This agreement outlines the terms and conditions, and the relative rights and responsibilities of the City and the Redeveloper for the redevelopment of the property in downtown Iowa City known as 1020 William St. &2611 Muscatine Ave., an urban renewal parcel. WITNESSETH: WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has undertaken a program for the clearance and reconstruction or rehabilitation of certain areas in the City and has undertaken an economic development area in the City; and WHEREAS, on December 7, 2010 the Iowa City City Council adopted Resolution No. 10-509 approving the Towncrest Urban Renewal Plan, (said plan is hereinafter referred to as the "Urban Renewal Plan" or"Plan"); AND WHEREAS, the Plan was adopted for the urban renewal area ("Project Area") shown on Exhibit "A" and legally described on Exhibit "B"; and WHEREAS, a copy of the Urban Renewal Plan as constituted on the date of this Agreement has been recorded among the land records in the office of the Recorder of Johnson County, Iowa; and WHEREAS, such Urban Renewal Plan permits the City to respond to development opportunities as and when they may appear; and WHEREAS, the Redeveloper submitted a private redevelopment proposal titled "Proposal for Redevelopment of 1020 William St. and 2611 Muscatine Ave.", which proposal consists of a mix of commercial and medical office space, as shown on the Redeveloper's proposal, attached as Exhibit "C" (hereinafter, "the Project") and the description of Minimum Improvements and Uses, attached as Exhibit "D", on property legally described on Exhibit E hereto (hereinafter"the Property" or the "Redevelopment Property"; and WHEREAS, the City has determined the Project is consistent with and authorized by the Urban Renewal Plan and all applicable State and federal laws, including but not limited to Iowa Code Chapters 15A and 403; and WHEREAS, the Redeveloper is willing to develop or cause the Property to be developed for and in accordance with the uses specified in the Urban Renewal Plan and in accordance with 3 this Agreement by constructing the Project facility and incorporating the uses outlined in this Agreement and the Redeveloper's proposal. NOW, THEREFORE, in consideration of the promises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: PART I Section 1. Construction and Uses. The Redeveloper's construction on 1020 William St. & 2611 Muscatine Ave. will consist of a commercial structure generally consistent with the redevelopment proposal shown on Exhibit "C" as submitted by the Redeveloper on June 4, 2012, and as described more fully on Exhibit D (Minimum Improvements and Uses). The Redeveloper hereby commits to a Project that includes a minimum total of $5,069,344 in acquisition, demolition, site preparation, and construction costs, inclusive of architectural and environmental fees, as shown on Redeveloper's proposal attached as Exhibit"C". Section 2. Representations and Warranties of Redeveloper. The Redeveloper makes the following representations and warranties: (a) The Redeveloper is a limited liability company, duly organized under the laws of the State of Iowa, has power to enter into this Agreement and to perform its obligations hereunder, and is not in violation of any provisions of its articles of organization, operating agreement, any other agreement or the laws of the State of Iowa. (b) The Redeveloper has the full power and authority to execute this Agreement and this Agreement shall constitute the legal, valid and binding obligation of the Redeveloper in accordance with its terms, and the consent of no other party is required for the execution and delivery of this Agreement by the Redeveloper or the consummation of the transaction contemplated hereby. (c) The making and performance of this Agreement by the Redeveloper and the execution and delivery of the documents to be delivered by the Redeveloper pursuant hereto, have been duly authorized by all necessary action of the Redeveloper, and this Agreement and such documents will be valid and binding obligations of the Redeveloper enforceable in accordance with their terms. (d) The Redeveloper will cause the Minimum Improvements to be constructed, operated and maintained in accordance with the terms of this Agreement, the Urban Renewal Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations), except for minor variances necessary to construct the Minimum Improvements contained in any Construction Plans approved by the City. (e) The Redeveloper will use its best efforts to obtain, or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, 4 all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The Redeveloper's Architect will work with the City's staff Design Review Committee on the final designs of the project. The Design Review Committee will ultimately approve or disapprove the exterior design of the building. This agreement is contingent on the Redeveloper's Architect and the City's staff Design Review Committee reaching agreement on the exterior design of the building. If the final exterior design substantially deviates from the concept plan shown in Exhibit C, it shall be subject to approval by Council. (f) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a breach of, the terms, conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, nor do they constitute a default under any of the foregoing. (g) The Redeveloper will spend enough in construction of the Minimum Improvements, when combined with the value of the Property and related site improvements, to equal or exceed the Assessor's Minimum Actual Value set forth in Section 6 of this Agreement. The Redeveloper estimates that the Assessor's Minimum Actual Value set forth in Section 6 of this Agreement is a reasonable estimate of the actual value for ad valorem tax purposes. (h) The Redeveloper has not received any notice from any local, state or federal official that the activities of the Redeveloper with respect to the Property may or will be in violation of any environmental law or regulation (other than those notices, if any, of which the City has been notified). The Redeveloper is not aware of any State or federal claim filed or planned to be filed by any party relating to any violation of any local, State or federal environmental law, regulation or review procedure, and the Redeveloper is not aware of any violation of any local, State or federal law, regulation or review procedure which would give any person a valid claim under any State or federal environmental statute. (i) The Redeveloper shall proceed with due diligence to obtain construction financing commitments, which commitments shall be sufficient to enable the Redeveloper to successfully complete the Minimum Improvements as contemplated in this Agreement. Redeveloper will obtain all financing commitments necessary for the construction of the Minimum Improvements prior to the issuance of a building or foundation permit but in no event later than 5 (five) months from the date of this Agreement, and provide a copy of such commitments to the City by such date. This agreement is contingent upon Redeveloper obtaining financing upon terms and conditions satisfactory to Redeveloper and City. In the event such financing is not obtained by Redeveloper within 5 (five)months from the date of this Agreement, Redeveloper or the City shall have the right to terminate this agreement. (j) The Redeveloper will cooperate fully with the City and the owner of the property contiguous to the subject Property in resolution of any traffic, parking, trash removal, public safety or any other problems which may arise in connection with the construction and operation of the Minimum Improvements. 5 Section 3. Time for Commencement and Completion of Minimum Improvements. The construction of the Project and Minimum Improvements referred to in Section 1 hereof shall commence not later than five months from the date of this Agreement, and shall be substantially completed on or before December 31, 2013. Section 4. Time for Certain Actions. (a) Progress Reports and Time for Submission of Construction Plans. Redeveloper will keep the City informed regarding the status of the project by responding to inquiries from representatives of the City and furnishing progress reports as reasonably requested, but not less than quarterly during construction. Redeveloper agrees to provide to the City design development drawings showing preliminary floor plans, elevations and related information no later than 90 calendar days after the date of this Agreement. No formal response will be required from the City to these design development drawings. The City, however, will alert Redeveloper of any known code violations or other design issues that would impact the acceptance of the Construction Plans. The time within which the Redeveloper shall submit its initial "Construction Plans" (as defined in Section 301 hereof) to the City in any event, pursuant to Article III hereof, shall be not later than 120 calendar days from the date of this Agreement. Within 30 calendar days of submittal, the City shall review and approve or reject and make recommendations for corrections to said Construction Plans. The City's review of said Construction Plans shall be based on the Urban Renewal Plan, all applicable codes and any additional requirements imposed on the Redeveloper under this Agreement. (b) Time for Submission of Corrected Construction Plans. Except as provided in Paragraph (c) of this Section, the time within which the Redeveloper shall submit any new or corrected Construction Plans as provided for in Section 301 shall be not later than thirty (30) calendar days after the date the Redeveloper receives written notice from the City of the City's rejection and recommendations for corrections to the Construction Plans referred to in the latest such notice. (c) Maximum Time for Approved Construction Plans. In any event, the time within which the Redeveloper shall submit Construction Plans which conform to the requirements of Section 301 hereof and are approved by the City shall be not later than thirty (30) calendar days after the date the Redeveloper receives written notice from the City of the City's first rejection and recommendations for corrections to the original Construction Plans submitted to it by the Redeveloper. (d) Time for City Action on Change in Construction Plans. The time within which the City may reject any change in the Construction Plans, as provided in Section 301 hereof, shall be thirty (30) calendar days after the date of the City's receipt of notice of such change. (e) Time for Submission of Evidence of Financing Ability. Prior to the issuance of a building or foundation permit, but in no event later than five months from the date of this Agreement, the Redeveloper shall submit to the City evidence satisfactory to the City that the 6 Redeveloper has the financial ability and commitments for construction and mortgage financing necessary for construction of the Minimum Improvements, as provided in Section 301 hereof. Section 5. Minimum Assessment Agreement. The Redeveloper acknowledges and agrees that the grant to the Redeveloper provided for in Section 101 of this Agreement contemplates that the property tax revenues generated from the Project legally described in Exhibit E, attached hereto, will be sufficient to repay the 20 year loan from the General Fund cash balance (herein after "General Fund loan") referred to in Section 101 of this Agreement. In order to induce the City to make such grant, Redeveloper agrees to enter into a Minimum Assessment Agreement in a form in substantial compliance with Exhibit F attached hereto, in order to establish a Minimum Actual Value for the land and Minimum Improvements for this Project. The Redeveloper acknowledges and agrees that it, or the owners of condominium units sold, will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property and further agrees that, prior to the final maturity date of all bonds, notes, loans or other obligations issued or undertaken by the City to finance its costs of the Project: (a) neither it nor the owners of condominium units sold will seek administrative or judicial review of the applicability of any tax statute determined by any official to be applicable to the Property or the Redeveloper, or the owners of condominium units sold, or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (b) neither it nor the owners of condominium units sold will seek administrative or judicial review of the constitutionality of any tax statute determined by any official to be applicable to the Property or the Redeveloper or the owners of condominium units sold, or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (c) it will not cause a reduction in the taxable valuation upon which real property taxes are paid with respect to the Project, which consists of a commercial structure generally consistent with the redevelopment proposal shown on Exhibit "C" as submitted by the Redeveloper (and as more specifically outlined in Exhibit D Minimum Improvements and Uses), below the amount of$2,225,000 after taking into consideration any factors such as "roll-backs" which would reduce the taxable value of the property as of January 1, 2014. ("Minimum Actual Value")through: (i) willful destruction of the Property or any part thereof; (ii) a request to the City Assessor of Iowa City, Iowa to reduce the Minimum Actual Value of the Property below the amount noted above; 7 (iii) an appeal to the Board of Review of the City of Iowa City or to the Board of Review of Johnson County to reduce the Minimum Actual Value of the Property below the amount noted above; (iv) a petition to the Board of Review of the State of Iowa or to the Director of Revenue and Finance of the State of Iowa to reduce the Minimum Actual Value of the Property below the amount noted above; (v) an action in any District Court of the State of Iowa seeking a reduction in the Minimum Actual Value of the Property below the amount noted above; (vi) an application to the Director of Revenue and Finance of the State of Iowa requesting an abatement of real property taxes pursuant to any present or future statute or ordinance; (vii) any other proceedings, whether administrative, legal or equitable, with any administrative body within the City of Iowa City, Johnson County, or the State of Iowa or within any court of the State of Iowa or the federal government. The Redeveloper or owners of condominium units sold shall not, prior to the final maturity date of the bonds, notes, loans or other obligations issued or undertaken by the City to finance its costs of Contribution to the Project, as outlined in Section 101 hereof, cause or voluntarily permit the Property to become other than taxable property (except as permitted herein); to be taxable at an amount less than the Minimum Actual Value noted above; to be owned by a utility or any other entity of a type where the assessed value of taxable property of such entity is not treated as located within the Project Area in its entirety; to be owned by any entity having tax exempt status; or apply for a deferral of property tax on the Property pursuant to any present or future statute or ordinance. Nothing contained herein is intended to, and shall not be construed to, in any way limit Redeveloper's right to sell condominium units in the Project at any time subject to the terms of this Agreement and the applicable Minimum Assessment Agreement. The Redeveloper agrees that it and its successors in interest, including owners of condominium units sold, is bound by the applicable Minimum Assessment Agreements attached as Exhibit F fixing the Minimum Actual Value of the Property as approved by the Assessor and the City as set forth herein. The Redeveloper shall provide to the City a title opinion showing all lienholders, and all such lienholders shall consent to the Minimum Assessment Agreements. The Redeveloper recognizes that the grant to the Redeveloper pursuant to the Agreement is conditional upon sufficient property taxes being generated by this Property to repay the costs of the bonds, notes, loans or other obligations issued or undertaken by the City to make such grant. The City will need property taxes from the Property in the amounts and at the times set forth in Schedule Y to the applicable Minimum Assessment Agreement. If for any reason the property taxes are less than the amount set forth on Schedule Y for any fiscal year, the assessor shall increase the assessed value of the Project for the next fiscal year in an amount to cover such property tax deficiency. If, for any reason, the assessor does not so increase the assessed value, Redeveloper or its successors in interest, including owners of the condominium units sold, shall 8 make a payment to the City in the amount of the difference between the property tax revenue and the cost of the bonds, notes, loans or other obligations (hereinafter"shortfall"). The Redeveloper contemplates that the Project will consist of three condominium units. The Redeveloper agrees that at the time of the execution of the declaration required by Chapter 499B Horizontal Property (Condominiums) of the Code of Iowa 2011, an attachment to the declaration will be executed by the Redeveloper, the City and the City Assessor allocating a portion of the Minimum Actual Value to each unit. The Minimum Actual Values herein established shall be of no further force and effect and the Minimum Assessment Agreements shall terminate on April 1, 2035 when the final installment on the General Fund loan is made, or when the loan is paid in full, whichever is earlier. The Minimum Assessment Agreements shall be certified by the Assessor for the City as provided in Iowa Code Section 403.6(19) and shall be filed for record in the office of the Johnson County Recorder, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Property (or part thereof), whether voluntary or involuntary, and such Minimum Assessment Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of any First Mortgage. If, for any reason, the Minimum Assessment Agreement is held to be invalid or unenforceable for any reason whether in whole or in part and the property tax revenue generated by the Project is insufficient to pay the loan payments as they become due, the Redeveloper or its successors in interest, including owners of the condomium units sold, agrees to make a contractual payment to the City in the amount of the difference between the amount of the property tax revenue and the amount of the loan payment. Section 6. Notices and Demands A notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (a) In the case of the Redeveloper, is addressed or delivered personally to the Redeveloper at 711 S. Gilbert St., Iowa City, Iowa 52240, Attn: Kevin Digmann and (b) In the case of the City, is addressed to or delivered personally to the City Manager at City Hall, 410 E. Washington St, Iowa City, Iowa, 52240, or at such other address with respect to either party as that party may from time to time designate in writing and forward to the other as provided in this Section. Section 7. Counterparts. The Agreement may be executed in multiple counterparts, each of which shall constitute one and the same instrument. 9 PART II ARTICLE I. CITY CONTRIBUTIONS TO PROJECT Section 101. Contributions by City. The City agrees to the following contributions in connection with the Project: (a) The City agrees to make a loan from its General Fund balance with a 20 year repayment schedule and an annual interest rate of 3.25% to fund a construction grant to the Redeveloper and to finance the Project as outlined below provided, however, that the City may, in its sole discretion, fund such grant in whole or in part through any other means available to the City. In no event shall the City make such loan until Redeveloper has satisfied the financial commitments stated in Article III, Section 303. (b) The City will make a construction grant for the use by the Redeveloper. Based on a final total project cost of$5,069,344 the grant shall be $625,000. In the event the total project cost is less than said amount by 10% or more the final grant payments shall be reduced on a pro-rata basis. For example, if the total project cost is 11% less than $5,069,344, the grant shall be reduced by 1%. The grant funds shall be released to the Redeveloper on a pro rata basis with the proceeds of the construction loan for progress payments to the contractor based on Applications for Payment submitted to the Architect by the Contractor at such time as Certificates of Payment are issued by the Architect and in the amounts so certified. In the event that the total project cost is less than the estimated final total project cost by 10% or more City will adjust the final progress payments accordingly and/or Redeveloper will repay to City any overpaid amounts. (c ) The City shall make a forgivable loan of $300,000 to Redeveloper upon the Redeveloper's acquisition of 1020 William St. and 2611 Muscatine Ave. through the City's Gap Financing for Towncrest Catalyst Projects. Redeveloper will give the City a mortgage on said properties to secure its obligation to construct the Project, which mortgage will be released upon issuance of a Certificate of Occupancy and sale of the entire Redevelopment Property and will be partially released upon the sale or lease of each condominium. Said mortgage shall be subordinate to the mortgage of the lender providing financing necessary to enable the Redeveloper to construct the minimum improvements required under this Agreement. In the event construction is not substantially complete within the time provided in Section 3 of Part I of this Agreement Redeveloper will refund said $300,000 to City. (d) The City shall pay the Redeveloper a matching grant of $25,000 for predevelopment expenses such as architectural, engineering, legal and environmental assessment. Based on cost documentation and invoices, the City will pay 50% of each eligible invoice to the Redeveloper until the City has paid the Redeveloper $25,000. City will pay each invoice within thirty (30) days of its 10 submittal. Redeveloper will have no obligation to repay such expenses in the event the construction of the Minimum Improvements is not commenced. ARTICLE II. RIGHTS OF ACCESS TO PROPERTY Section 201. Right of Entry for Utility Service. The City reserves for itself, and any public utility company, as may be appropriate,the unqualified right to enter upon the Property at all reasonable times for the purpose of reconstructing, maintaining, repairing, or servicing the following public utilities located within the Property boundary lines: a. storm sewer; b. water; and c. electricity. The City shall, within 30 days after the date this agreement is signed, provide Redeveloper with the location and description of all such utilities. If the location of any utility prevents, or makes impracticable, the placement of the contemplated building on the lot, the Redeveloper may terminate this agreement. Section 202. Redeveloper Not To Construct Over Utility Easements. The Redeveloper shall not construct any building or other structure or improvement on, over, or within the boundary lines of any easement for public utilities unless such construction is provided for in such easement or has been approved by the City. If approval for such construction is requested by the Redeveloper, the City shall use its best efforts to assure that such approval shall not be withheld unreasonably. If relocation of such utilities is reasonable, Redeveloper shall pay all costs of such relocation. Section 203. Access to Property. The Redeveloper shall permit the representatives of the City access to the Property at all reasonable times which it deems necessary for the purposes of this Agreement including, but not limited to, inspection of all work being performed in connection with the construction of the Minimum Improvements. No compensation shall be payable nor shall any charge be made in any form by any party for the access provided for in this Section. ARTICLE III. CONSTRUCTION PLANS; CONSTRUCTION OF IMPROVEMENTS; CERTIFICATE OF COMPLETION Section 301. Plans for Construction of Improvements. Plans and specifications with respect to the redevelopment of the Property and the construction of certain improvements thereon, to consist of a commercial structure generally consistent with the redevelopment proposal shown on Exhibit "C" as submitted by the Redeveloper on June 4, 2012, and the "Minimum Improvements" shown on Exhibit D and as outlined in Section 1, Part I above, (hereinafter "Minimum Improvements"), shall be in conformity with the Urban Renewal Plan and this Agreement, and all applicable Federal, State and local laws and regulations. As 11 promptly as possible after the date of this Agreement, and, in any event, no later than the time specified therefore in Paragraph (a), Section 4 of Part I hereof, the Redeveloper shall submit to the City, for approval by the City Departments of Planning, Public Works and Housing and Inspection Services, or their designee(s), plans, drawings, specifications, and related documents, and the proposed construction schedule in sufficient completeness and detail to show that such "Minimum Improvements" and construction thereof will be in accordance with the provisions of the Urban Renewal Plan, this Agreement, and all applicable codes. Said plans, drawings, specifications, related documents, and progress schedule, together with any and all changes therein approved in writing by the City in accordance with Section 302 hereof, are, except as otherwise clearly indicated by the context, are collectively defined as "Construction Plans" with respect to the "Minimum Improvements" to be constructed. The City shall, if the Construction Plans conform to the provisions of the Urban Renewal Plan, this Agreement, and all applicable codes, approve in writing such Construction Plans and no further filing by the Redeveloper or approval by the City thereof shall be required except with respect to any material change. The City will then, upon appropriate showing of compliance with the requirements of the previous sentence, issue the appropriate building permit(s). Failure by the City to identify a code deficiency during plan review does not, however, relieve the Redeveloper from any obligation to comply with all applicable code provisions. Such Construction Plans shall, in any event, be deemed approved unless rejection thereof in writing by the City, in whole or in part, setting forth in detail the reasons therefore, shall be made within the time specified in Part 1, Section 4hereto. If the City so rejects the Construction Plans in whole or in part as not being in conformity with the Urban Renewal Plan, this Agreement, or all applicable codes, the Redeveloper shall submit new or corrected Construction Plans which are in conformity with the Urban Renewal Plan, this Agreement, and all applicable codes within the time specified in Paragraph (b), Section 4hereof, after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection, and resubmission of corrected Construction Plans herein above provided with respect to the Construction Plans shall continue to apply until the Construction Plans have been approved by the City: Provided, that in any event the Redeveloper shall submit Construction Plans which are in conformity with the requirements of the Urban Renewal Plan for the Project,this Agreement and all applicable codes, as determined by the City, no later than the time specified therefore in Paragraph c, Section 4 of Part I hereof. All work with respect to the "Minimum Improvements" to be constructed or provided by the Redeveloper on the Property shall be in conformity with the Construction Plans as approved by the City. The term "Minimum Improvements", as used in this Agreement, shall be deemed to have reference to the "Minimum Improvements" as provided and specified in the Construction Plans as so approved and incorporated herein by Exhibit D. Approval of the Construction Plans by the City shall not relieve any obligation to comply with the terms and provisions of this Agreement, or the provision of applicable federal, State and local laws, ordinances and regulations, nor shall approval of the Construction Plans by the City be deemed to constitute a waiver of any Event of Default. Approval of Construction Plans hereunder is solely for purposes of this Agreement, and shall not constitute approval for any other City purpose nor subject the City to any liability for the Minimum Improvements as constructed." 12 Section 302. Changes in Construction Plans. If the Redeveloper desires to make any substantial change in the Construction Plans after their approval by the City, the Redeveloper shall submit the proposed change to the City for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of Section 301 hereof with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City unless rejection thereof, in whole or in part, by written notice thereof by the City to the Redeveloper, setting forth in detail the reasons therefore, shall be made within the period specified therefore in Paragraph d, Section 4 of Part I hereof. Section 303. Evidence of Equity Capital and Mortgage Financing. As promptly as possible and, in any event, no later than the time specified therefore in Paragraph i, Section 2 of Part I hereof, the Redeveloper shall submit to the City evidence satisfactory to the City that the Redeveloper has the financial ability to construct the"Minimum Improvements". Section 304. Commencement and Completion of Construction of "Minimum Improvements". The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof, and each Deed or other conveyance shall contain covenants on the part of the Redeveloper for itself and such successors and assigns, that after the first installment of the construction grant provided for in Section 101(b) of this Agreement has been made by the City, the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the "Minimum Improvements" thereon, and that such construction shall in any event begin within the period specified in Section 3 of Part I hereof and be completed within the period specified in such Section 3. It is intended and agreed, and each Deed or other conveyance of the Property or any portion thereof shall so expressly provide, that the construction of the Minimum Improvements shall be covenants running with the land and they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Agreement itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the community and the City and enforceable by the City against the Redeveloper and its successors and assigns to or of the Property or any part thereof or any interest therein. Section 305. Notice of Delays. Until construction of the "Minimum Improvements" has been completed, the Redeveloper shall give prompt notice in writing to the City of any adverse development which would materially affect or delay the completion of such construction. Upon such notification and subject to agreement by the City the completion date will be extended accordingly. Section 306. Certificate of Completion. (a) Promptly after completion of the "Minimum Improvements" in accordance with those provisions of this Agreement relating solely to the obligations of the Redeveloper to construct the "Minimum Improvements" (including the dates for beginning and completion thereof), the City will furnish the Redeveloper with an 13 appropriate instrument so certifying. Such certification by the City shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and in the Deed with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the "Minimum Improvements" and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the "Minimum Improvements", or any part thereof. (b) The certification provided for in this Section 306 shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the City shall refuse or fail to provide any certification in accordance with the provisions of this Section, the City shall, within thirty (30) calendar days after written request by the Redeveloper, provide the Redeveloper with a written statement indicating in adequate detail in what respects the Redeveloper has failed to complete the "Minimum Improvements" in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for the Redeveloper to take or perform in order to obtain such certification. ARTICLE IV. RESTRICTIONS UPON USE OF PROPERTY Section 401. Restrictions on Use. The Redeveloper agrees for itself, its successors and assigns, that each deed or other conveyance shall contain covenants on the part of the Redeveloper for itself, such successors and assigns, that the Redeveloper and such successors and assigns, shall: (a) Use its best efforts to devote the Property only to, and in accordance with, the uses specified in the Urban Renewal Plan and the uses specified in Section 1, Part I of the Agreement, including Exhibits "C" and"D"; and (b) Not discriminate upon the basis of age, race, creed, color, disability, gender identity, marital status, sex, sexual orientation, religion, national origin, familial status, or the presence or absence of dependents or public assistance source of income in the sale, lease, or rental or in the use or occupancy of the Property or any "Minimum Improvements" erected or to be erected thereon, or any part thereof. Section 402. Covenants; Binding Upon Successors in Interest; Period of Duration. It is intended and agreed, and each deed or other conveyance shall so expressly provide, that the agreements and covenants provided in Section 401 hereof shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Agreement, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, its successors and assigns, and any successor in interest to the Property, or any part thereof, against the Redeveloper, its successors and assigns, and any 14 party in possession or occupancy of the Property or any part thereof. It is further intended and agreed that the agreements and covenants provided in subdivision (a) and (b) of Section 401 hereof shall remain in effect until April 1, 2035. Provided, that such agreements and covenants shall be binding on the Redeveloper itself, each successor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an interest in, or possession or occupancy of the Property or any part thereof. The terms "uses specified in the Urban Renewal Plan" and "land use" referring to the provisions of the Urban Renewal Plan, or similar language, in this Agreement shall include the land and all building, housing, and other requirements or restrictions of the Urban Renewal Plan pertaining to such land. Section 403. City Rights To Enforce. In amplification, and not in restriction, of the provisions of the preceding Section, it is intended and agreed that the City and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Section 401 hereof, both for and in its own right and also for the purposes of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall (and each Deed shall so state) run in favor of the City, until April 1, 2035, during which time such agreements and covenants shall be in force and effect, without regard to whether the City has at any time been, remains, or is an owner of any land or interest therein to or in favor of which such agreements and covenants relate. The City shall have the right in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled, and shall be entitled to recover, in addition to its court costs, a reasonable attorney's fee to be fixed by the court, and such recovery shall include court costs and attorney's fees on appeal, if any. ARTICLE V. PROHIBITIONS AGAINST ASSIGNMENT,TRANSFER Section 501. Representation as to Redevelopment. The Redeveloper represents and agrees that its undertakings pursuant to this Agreement are and will be used for the purpose of redevelopment of the Property and not for speculation in land holding. The Redeveloper further recognizes: (a) the importance of the redevelopment of the Property to the general welfare of the community; (b) the substantial financing and other public aids that have been made available by law and by the City for the purpose of making such redevelopment possible; and (c) the fact that any act or transaction involving or resulting in a significant change in the ownership or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, is for practical purposes a transfer or disposition of the Property then owned by the Redeveloper, and that the qualifications and identity of the Redeveloper are of particular concern to the community and the City. The Redeveloper recognizes that it is because of such 15 qualifications and identity that the City is entering into this Agreement with the Redeveloper. Section 502. Prohibition Against Transfer of Property and Assignment of Agreement. For the foregoing reasons the Redeveloper represents and agrees for itself, and its successors and assigns,that: (a) the Redeveloper has not made or created, and that it will not, before completion of the Minimum Improvements and receipt of a Certificate of Completion pursuant to Section 306, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property, or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the City. (b) Notwithstanding the restrictions set forth in subparagraph (a) of this Section 502, the Redeveloper may: 1. make such transfer or assignment only by way of security only for the purpose of obtaining financing necessary to enable the Redeveloper or and successor in interest to the Property, or any part thereof, to perform its obligations with respect to constructing the "Minimum Improvements"under this Agreement; 2. sell or lease commercial condominium units in the Project at any time subject to the terms of the Minimum Assessment Agreement. (c) The City shall be entitled to require, except for such transfers, assignments, leases, conveyances or sales provided for in subsection (b) of Section 502, as conditions to any such approval that: 1. Any proposed transferee shall have the qualifications and financial responsibility, as determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper (or, in the event the transfer is of or relates to part of the Property, such obligations that relate to such part). 2. Any proposed transferee shall expressly assume, by instrument in writing satisfactory to the City and in form recordable among the land records, for itself, its successors and assigns, and expressly for the benefit of the City, all of the obligations of the Redeveloper under this Agreement and agree to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of or relates to part of the Property, such obligations, conditions, and restrictions that relate to such part), Provided that in the event any transferee or successor in interest to the Property, or any part thereof, does not, for whatever reason, expressly assume or agree to such obligations, conditions and restrictions, 16 such lack of assumption or agreement shall not relieve or except such transferee or successor of such obligations, conditions, or restrictions; nor shall it deprive or limit the City of any rights, remedies or controls with respect to the Property or the construction of the "Minimum Improvements" unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the City. It being the intent that, to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement, no transfer of or change of ownership in the Property, any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights, remedies or controls provided in or resulting from this Agreement that the City would have had, had there been no such transfer or change. 3. There shall be submitted to the City for review all instruments and other legal documents involved in effecting transfer; and if approved by the City, its approval shall be indicated to the Redeveloper in writing. 4. The consideration payable for the transfer by the transferee or on its behalf shall not exceed an amount representing the actual cost(including carrying charges) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the "Minimum Improvements", if any, theretofore made thereon by it; it being the intent of this provision to preclude assignment of this Agreement or transfer of the Property (or any parts thereof) for profit prior to the completion of the "Minimum Improvements". 5. The Redeveloper and its transferee or successor shall comply with such other conditions as the City may find desirable in order to achieve and safeguard the purposes of the Urban Renewal Act and the Urban Renewal Plan. Provided, That in the absence of a specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement or otherwise, of its obligations with respect to the construction of the "Minimum Improvements", or from any of its other obligations under this Agreement. Section 503. Information as to Parties in Control. In order to assist in the effectuation of the purposes of this Article V and the statutory objectives generally, the Redeveloper agrees that during the period between execution of this Agreement and completion of the "Minimum Improvements" as certified by the City, the Redeveloper will promptly notify the City of any and all changes whatsoever with respect to the identity of the parties in control of the Redeveloper or, the degree thereof, of which it or any of its officers or members have been notified or otherwise have knowledge or information. 17 Section 504. Status of Redeveloper; Transfer of Substantially All Assets. As security for the obligations of the Redeveloper under this Agreement, the Redeveloper represents and agrees that prior to April 1, 2035, the Redeveloper will maintain its existence as a limited liability company and will not wind up or otherwise dispose of all or substantially all of its assets or assign its interest in this Agreement to any other party; provided that the Redeveloper may sell or otherwise transfer to a partnership, corporation or limited liability company organized under the laws of one of the United States, or an individual, all or substantially all of its assets as an entirety or assign its interest in this Agreement to any other party and thereafter wind up and be discharged from liability hereunder if (i) the transferee partnership, corporation, limited liability company or individual assumes in writing all of the obligations of the Redeveloper under this Agreement and the Minimum Assessment Agreement; and (ii)the City receives such new security from the successor Redeveloper to assure completion and operation of the "Minimum Improvements" during the term of this Agreement as the City deems necessary or desirable and receives such evidence as the City shall reasonably require, including an opinion of counsel, that the existing performance and payment bonds and security provided pursuant to this Agreement will remain in effect and will be enforceable against the existing Redeveloper and issuer of such bonds upon a default by the successor Redeveloper with respect to completion or operation of the "Minimum Improvements". In addition, notwithstanding anything herein to the contrary, in the event the Redeveloper has received a Certificate of Completion of the Minimum Improvements pursuant to Section 306 hereof and has sold its entire interest in the Redevelopment Property to other persons or entities, it may wind up and cease to exist if the transferee(s) have assumed, in writing, the obligations of the Redeveloper under the Minimum Assessment Agreement, including the obligation to make a contractual payment covering the shortfall in the event that the property tax revenue generated is insufficient to make any loan payment by execution of that certain Assumption Agreement, a copy of which is attached hereto as Exhibit"I. ARTICLE VI. MORTGAGE FINANCING; RIGHTS OF MORTGAGEES Section 601. Limitation Upon Encumbrance of Property. Prior to the completion of the "Minimum Improvements", as certified by the City, neither the Redeveloper nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any mortgage, encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the Property, except for the purposes of obtaining funds only to the extent necessary for making the "Minimum Improvements", including but not limited to engineering, development, legal and related Project costs (including costs of interior improvements, furnishings and fixtures. The Redeveloper (or successor in interest) shall notify the City in advance of any financing, secured by mortgage or other similar lien instrument, it proposes to enter into with respect to the Property, or any part thereof, and in any event it shall promptly notify the City of any encumbrance or lien that has been created on or attached to the Property, whether by voluntary act of the Redeveloper or otherwise. Nothing herein is intended to, and should not be construed to, in any way limit Redeveloper from selling condominium units in the Project at any time or limit purchasers from placing mortgages on the condominium units subject to the terms of this Agreement and the Minimum Assessment Agreement. 18 Section 602. Mortgage Holder Not Obligated To Construct. Notwithstanding any of the provisions of this Agreement, the holder of any mortgage authorized by this Agreement (including any such holder who obtains title to the Property or any part thereof as a result of foreclosure proceedings, or action in lieu thereof, but not including (a) any other party who thereafter obtains title to the Property or such part from or through such holder or (b) any other purchaser at foreclosure sale other than the holder of the mortgage itself) shall not be obligated by the provisions of this Agreement to construct or complete the "Minimum Improvements" or to guarantee such construction or completion; nor shall any covenant or any other provision in the Deed be construed to so obligate such holder Provided, That nothing in this Section or any other Section or provision of this Agreement shall be deemed or construed to permit or authorize any such holder to devote the Property or any part thereof to any uses, or to construct any "Minimum Improvements" thereon, other than those uses or improvements provided or permitted in the Urban Renewal Plan and in this Agreement. Section 603. Copy of Notice of Default to Mortgagee. Whenever the City shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each known holder of any mortgage authorized by this Agreement at the last address of such holder shown in the records of the City. Section 604. Mortgagee's Option To Cure Defaults. After any breach or default referred to in Section 603 hereof, each such holder shall (insofar as the rights of the City are concerned) have the right, at its option, to cure or remedy such breach or default(or such breach or default to the extent that it relates to the part of the Property covered by its mortgage) and to add the cost thereof to the mortgage debt and the lien of its mortgage Provided, That if the breach or default is with respect to construction of the "Minimum Improvements", nothing contained in this Section or any other Section of this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the "Minimum Improvements" (beyond the extent necessary to conserve or protect "Minimum Improvements" or construction already made) without first having expressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete, in the manner provided in this Agreement, the "Minimum Improvements" on the Property or the part thereof to which the lien or title of such holder relates. Any such holder who shall properly complete the "Minimum Improvements"relating to the Property or applicable part thereof shall be entitled, upon written request made to the City, to a certification or certifications by the City to such effect in the manner provided in Section 306 of this Agreement. Section 605. City's Option To Pay Mortgage Debt or Purchase Property. Subsequent to default or breach of this Agreement by the Redeveloper or successor in interest, in any case where the holder of any mortgage on the Property or part thereof: (a) has, but does not exercise, the option to construct or complete the "Minimum Improvements" to the Property or part thereof covered by its mortgage or to which it has obtained title, and such failure continues for a period of sixty (60) days after the holder has been notified or informed of the default or breach; or 19 (b) exercises the option to construct or complete the "Minimum Improvements" but does not complete such "Minimum Improvements" within the period agreed upon by the City and such holder (which period shall in any event be at least as long as the period prescribed for such completion in this Agreement), and such default shall not have been cured within sixty (60) days after written demand by the City so to do, the City shall: (a) have the option to pay to the holder the amount of the mortgage debt and securing an assignment of the mortgage and the debt secured thereby; or (b) in the event ownership of the Property (or part thereof) has vested in such holder by way of foreclosure or action in lieu thereof, the City shall be entitled, at its option, to receive conveyance of title to the Property or part thereof(as the case may be)upon payment to such holder of an amount equal to the sum total of: (i) the mortgage debt at the time of foreclosure or action in lieu thereof(less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); (ii) all expenses with respect to the foreclosure; (iii) the net expense, if any (exclusive of general overhead), incurred by such holder in and as a direct result of the subsequent management of the Property; (iv) the costs of any"Minimum Improvements" made by such holder; and (v) an amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage debt and such debt had continued in existence. Every mortgage instrument made prior to completion of the "Minimum Improvements" with respect to the Property or any part thereof shall so provide. Section 606. City's Option To Cure Mortgage Default. In the event the Redeveloper, or any successor in interest defaults or breaches its obligations under, and to the holder of, any mortgage or other instrument creating an encumbrance or lien upon the Property or part thereof prior to the completion of the "Minimum Improvements", the City may, at its option, cure such default or breach, in which case the City shall be entitled, to reimbursement from the Redeveloper or successor in interest of all costs and expenses incurred by the City including reasonable attorney's fees in curing such default or breach and to a lien upon the Property (or the part thereof to which the mortgage, encumbrance, or lien relates) for such reimbursement, in addition to and without limitation upon any other rights or remedies to which it shall be entitled by this Agreement, operation of law, or otherwise: Provided, That any such lien shall be subject always to the lien of(and any lien contemplated by, because of advances yet to be made,) any then-existing mortgages on the Property authorized by this Agreement. Section 607. Mortgage and Holder. For the purposes of this Agreement: The term "mortgage" shall include a deed of trust or other instrument creating an encumbrance or lien 20 upon the Property, or any part thereof, as security for a loan. The term "holder" in reference to a mortgage shall include a deed of trust. Section 608. Subordination and Modification for the Benefit of Mortgagees. (a) In order to facilitate obtaining financing for the construction of the "Minimum Improvements" by the Redeveloper, the City agrees to subordinate its rights under this Agreement and under its mortgage referenced in Section 1.01(c) to the holder of the First Mortgage for the purposes described in Section 601(a) of this Agreement, but only provided that the First Mortgage or a subordination agreement provides that if the holder of the First Mortgage shall foreclose on the Redevelopment Property, the improvements thereon, or any portion thereof, or accept a deed to the Redevelopment Property in lieu of foreclosure, it shall consent to the Assessor's Minimum Actual Value set forth in the Minimum Assessment Agreement and all the provisions of the Minimum Assessment Agreement. (b) In order to facilitate obtaining financing for the construction of the "Minimum Improvements", the City agrees that it shall agree to any reasonable modification of this Article VI or waiver of its rights hereunder to accommodate the interests of the holder of the First Mortgage, provided, however, that the City determines, in its reasonable judgment, that any such modification(s) will adequately protect the legitimate interests and security of the City with respect to the Project and the Urban Renewal Plan. The City also agrees to consider such modification(s) of this Article VI with respect to other holders, and to agree to such modifications if the City deems such modification(s)necessary and reasonable. ARTICLE VII. REMEDIES Section 701. In General. Except as otherwise provided in this Agreement, in the event of any default or breach of this Agreement, or any of its terms or conditions, by either party herein, or any successor to such party, such party (or successor) shall, upon written notice from the other, proceed immediately to commence to cure or remedy such default or breach and shall complete such cure or remedy within ninety (90) days after receipt of such notice. In case such action is not taken or diligently pursued, or the default or breach cannot be cured or remedied within a reasonable time, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default or breach of its obligations and any other rights and remedies provided by law. Section 702. Other Rights and Remedies of City; No Waiver by Delay. The City shall have the right to institute such actions or proceedings as may be necessary to enforce the Redeveloper's covenants and obligations under this Agreement and to seek damages caused by a breach or default by the Redeveloper. The City may also institute such actions or proceedings it may deem desirable for effectuating the purposes of this Article VII, provided that any delay by the City in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Article VII shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that the City should not be constrained (so as to avoid the risk of being deprived of or limited in the exercise of the remedy provided in this Section because of concepts of waiver, laches, or otherwise) to exercise such 21 remedy at a time when it may still hope otherwise to resolve the problems created by the default involved); nor shall any waiver in fact made by the City with respect to any specific default by the Redeveloper under this Section be considered or treated as a waiver of the City's rights with respect to any other defaults by the Redeveloper under this Section or with respect to the particular default except to the extent specifically waived in writing. Section 703. Enforced Delay in Performance for Causes Beyond Control of Party. Performance by any party under this Agreement may be subject to unavoidable delays outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the "Minimum Improvements", litigation commenced by third parties, or acts of any federal, State or local governmental unit (other than the City) which directly result in such delays. Such delays shall constitute sufficient legal excuse for delayed performance under the terms of this Agreement. Section 704. Rights and Remedies Cumulative. The rights and remedies of the parties to this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. No waiver made by either such party with respect to the performance, or manner or time thereof, or any obligation of the other party or any condition to its obligations under this Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. ARTICLE VIII. MISCELLANEOUS Section 801. Conflict of Interest. Redeveloper agrees that, to its best knowledge and belief, no member, officer or employee of the City, or its designees or agents, nor any consultant or member of the governing body of the City, and no other public official of the City who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure, or who is in a position to participate in a decision-making process or gain insider information with regard to the Project, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the Project, or in any activity, or benefit therefrom, which is part of this Project at any time during or after such persons' tenure. Section 802. Non-Discrimination. In carrying out the Project, the Redeveloper shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin, gender identity, marital status, sexual orientation, religion, age, disability, familial status, presence or absence of dependents or public assistance source of income. The Redeveloper shall ensure that applicants for employment are granted employment, and the employees are treated during employment, without regard to their age, race, creed, color, disability, gender identity, marital status, sex, sexual orientation, religion or national origin. 22 Section 803. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 804. Memorandum of Agreement. The parties agree to execute and record a Memorandum of Agreement, in substantially the form attached as Exhibit K,to serve as notice to the public of the existence and provisions of this Agreement, and the rights and interests held by the City by virtue hereof. The Redeveloper shall pay all costs of recording. Section 805. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Iowa. Section 806. Administration of Agreement by City. The City Manager or designee shall administer the rights and obligations of the City hereunder. Section 807. Entire Agreement. This Agreement and the exhibits hereto reflect the entire agreement between the parties regarding the subject matter hereof, and supersedes and replaces all prior agreements, negotiations or discussions, whether oral or written. This Agreement may not be amended except by a subsequent writing signed by all parties hereto. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk, and the Redeveloper has caused this Agreement to be duly executed in its name and behalf by its authorized representative, on or as of the day first above written. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayor ATTEST: L City Attorney's Office By: 7e- )ea_f,t Maria K. Karr, City Clerk MDK DEVELOPMENT L.L.C. By: Mike Hodge, mber i ATTEST: 23 By: STATE OF IOWA ) COUNTY OF JOHNSON ) On this <1.7-611"- day of 'atm F- , 2047; before me a Notary Public in and for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. *lc SONDRAE FORT Srs.. Aa• T'erD Commission Number 159791 E x p i r e s Commission Notary Public in and for the State of Iowa STATE OF IOWA ) )SS COUNTY OF JOHNSON ) This instrument was acknowledged before me on this l`l day of.iv n-e- , 2012, by Mike Hodge as member of MDK Develo. - i L.L.0 KIRSI`EN'N. • rotary Public in and for the State of Iowa Ervo.: 24 EXHIBIT A MAP OF URBAN RENEWAL AREA I Illilla--E2- 1:* --- in mirlif/ 0111" illMigiii• p gall I/ f sM r .,.. .. _ H ---RS %// . 6______F ST. 'Pr .4,0-1/0,P'd P ,/, / A CO1 r r r 1,*(,,,//, iIV r r r e' wy/ A f/ A Pro/r ' /4/ A 0/4 r .4 Z A A ,dam -- — _ fir%jo.% TowncrestI- 2T HST. , ,V%V Towncrest Dr.l■ul illilli I ST. 1 V : j II EMI' IR* _ ,.. .a., . . _ . . — a ST. BRADFORD DR. /////, Towncrest urban renewal project area VI W 25 EXHIBIT B LEGAL DESCRIPTION OF TOWNCREST URBAN RENEWAL AREA Lots 1-4, Block 5; Block 6; Lots 1-4, Block 7; the N 100' of Lot 1 & the E 22' of the N 100' of Lot 2, Block 14; and the S 75' of Lot 8 & the E 10' of the S 75' of Lot 7, Block 15, and to the centerline of all adjacent rights-of-way, East Iowa City Subdivision, Iowa City, Iowa, according to the plat thereof; and Lots 5-19, Block 1; Lots 8-10, Block 2; and Lots 7-9, Block 3, and to the center line of all adjacent rights-of-way, Towncrest Addition, Iowa City, Iowa as shown on the plat thereof recorded at Book 4, Page 323 of the Johnson County Recorder; and Commencing at the northwest corner of Lot 12, Block 1, Towncrest Addition, then north 200', then east 107.5', then south 200', then west 107.5', and to the centerline of the adjacent rights- of-way; and Blocks 1 & 2, and Lots 1 & 2, Block 3, and to the centerline of all adjacent rights-or-way, Towncrest Addition Part Two Revised, Iowa City, Iowa, as shown on the plat thereof recorded at Book 6, Page 6 of the Johnson County Recorder; and Commencing at the NE corner of Lot 1, Block 1, Towncrest Addition Part Two Revised, thence E 160', thence S 148', thence W 160', thence N 148', and to the centerline of the adjacent Muscatine Avenue right-of-way; and The real estate north of and adjacent to Muscatine Avenue between First Avenue and Waters First Addition, excluding the Memory Gardens Cemetery. This area contains approximately 49.3 acres. 26 EXHIBIT C REDEVELOPER'`S PROPOSAL MDK DEVELOPMENT, L.L.C. 711 South Gilbert St. Iowa City, IA 52240 June 4, 2012 City of Iowa City c/o Jeff Davidson, Director of Planning and Community Development 410 E Washington St. Iowa City, IA 52240 RE:Towncrest Redevelopment Project Dear Jeff, MDK Development, L.L.C.,whose main principals are Mike Hodge,Dave Hodge,and Kevin Digmann,are requesting the City's financial assistance for a new 14,850 square foot medical/office building with 80 parking spaces in the Towncrest area. We currently have under contract 102 Williams St.(ACT Building) and 2611 Muscatine Ave. (Sinclair gas station). Our plan is to demolish the existing buildings and site. The contractor for the project will be Hodge Construction and Architect will be Neumann Monson. The building will be completed as a commercial condominium and the spaces may be sold to end users. The total project cost is estimated at approximately$5,000,000. Since this project is a redevelopment of two properties into a green field,we are seeking City assistance of$950,000 for pre-development expenses and to reduce the acquisition and demolition cost to a comparable commercial lot in the Iowa City area. The current assessed value of existing sites combined is$876,950. Enclosed you will find: 1. Building Elevation 2. Site Plan 3. Summary of Land cost and Comparable other sites 4. Cost estimate for the Project 5. Preliminary Construction Schedule 6. Commitment Letter from Hills Bank This project would be a great start to the City's overall plan for redevelopment of the Towncrest area. If approved,we would begin construction this fall with occupancy fall 2013. If you have any questions please call me at 631-0548 or email kdigmann@yhoo.com. Siner; y; �� K ` ann '— Manager, MDK, Development, L.L.0 Proposal for the Redevelopment of 1020 Williams St. & 2611 Muscatine Ave. Request for financial assistance totaling $950,000 through Tax Increment Financing and Towncrest Development incentives. 1) Signed letter of interest submitted by the Developer. Attached. 2) Project Summary Developer plans to acquire 1020 Williams St. and 2611 Muscatine Ave., demolish the existing on site structures and build an approximate 14,850 sf building. The proposed new building will be one story with approximately 58 ground level parking spaces. There will be approximately 22 on street parking spaces. The exterior façade, brick veneer, will meet the Towncrest Design Plan requirements. 3) Site plan with front elevation. Attached 4) Description of the Development Team Project Owner, Developer and General Contractor: Hodge Construction, Mike Hodge, 711 S. Gilbert St., Iowa City, Iowa. 319.354.2233, mehodge @ia.net. Architect: Neumann Monson, 221 E College St., Suite 303, Iowa City, IA 52240 5) Evidence of site control. Evidence provided to City previously, now in possession of Developer. 6) Potential issues related to zoning, environmental hazards, utilities or other infrastructure issues Zoning: Setback of less than 10 feet is requested. Exact amount of setback to be determined with final site plan. Mixed use zoning required for a setback less than 10 feet. Current zoning is CC-2. Environmental hazards: Project involves removing underground petroleum storage tanks. 7) Development budget. Attached 8) Summary of capital funding sources. Included is lender commitment. Funding Funding Source&Type of Funds: Amount Bank: _Hills Bank $3,680,000 Applicant Contribution of Equity(private) $440,000 Other Private Resources $0 (please list) City of Iowa City $950,000 TOTAL—Must equal"use of funds" I $5,070,000 Based on conversations with local lenders an Urban Renewal Revenue Note is not feasible as the developer is not able to guarantee the financial gap that exists with this project. Up to $25,000 of the $950,000 in pre-development expenses requested for environmental assessment and architectural expenses incurred before construction commences. 9) Operating proforma. NA. Three commercial condominiums will be sold upon completion of construction. 10) The end users of the building will be for medical or office use. The also may be a small retail users. 11) Preliminary schedule for the development. Attached. -r''''.'-'t......:.,:.'..4,'...,. ..1. 1ywz f i 3 ,<�� a 1 h i w 17 O ., 1 r i qtr `s1,a exec � � y°4a.' ;,: t a a it b Ef Y ) 0 ` z 1� o . � z cn �. a se z iii'' Q i 4 : ,. . D c dot a. Z 1 }i :3 � .a _ rte« ii i RIR -i 4i , E j i O w WI CC U-1 _ w ::r 0 A O ¢ w v 2 3 , ? C3 3 x W r - " 15'-4" 110'-0" 51-1 / // ., 1:_11. . e r--- -.- A , prot.ierly line En LC) - — \ . ---, ■ \ \ • I ,-- ■ 1 i ----: C --T ; - 3,244 gsf b 6 i M in I I I I i B , ' 1 G. \ 1 .g. i 1 5,000 gsf zi) r-• 4 /, 1"-i -I I 9 I li 7,140 n5f I gi) 22 ----, i i _ _ 1__.. ___ ,.... , ____, 1 ( , , , I ( ..... 1 „_2)<•) ) \ ._____./ TT ' 1 ) A k . 6,605 gsf cp I — 9 9 9 1 _ , \ I __-- .. • .__ ,-------- ( 1 I 1 \ ■ 0 ---■ 1.----_y r (. _ ) I i 1 _ ) 1 ! 17'- /1" / 65 /-6" 421 /-7" 501-6" 1 I 1 r 8 , , .' . i 8 - ..., . -- \ / . / ' ... — 1 1 ; PARKING SUMMARY: I I 80 provided 1 1 . 55 req'd for spaces A & B combined I : I 25 available for space C N SITE PLAN 10 1. = 40'-0" HODGE TOWNCREST NEUMANN MONSON, PC n_o_l 9 . , Towncrest Medical Plaza Land Pricing and Comparisions SUBJECT SITE Location Parcel size Price Price/sq ft 2611 Mucatine-Sinclar Station 17,500 $ 537,500 $ 30.71 1020 Williams (ACT Building) 28,263 $ 750,000 $ 26.54 Total site cost 45,763 $ 1,287,500 $ 28.13 Demolition and site preperation $ 275,100 Cost to ready site to shovel ready 45,763 $ 1,562,600 34.15 City assistance $ (950,000) Net Land Price 45,763 $ 612,600 13.39 COMPARABLE SITES Location Parcel size Asking Price Price/sq ft Lot 49 Old Town Village 50,965 $ 650,000 $ 12.75 2507 N Dodge St 51,401 $ 295,555 $ 5.75 2509 N Dodge St 87,120 $ 500,940 $ 5.75 Average price per sq ft for other sites 189,486 1,446,495 $ 7.63 • Hodge Construction-Towncrest Development Estimate of Probable Cost Demolition and Site Preperation Q U $/U Subtotal Total Environmental Assessment $ 25,000 Demolition ACT Building 148,800 cf $ 0.48 $ 71,000 Relocate electrical service $ 10,000 Reconstruct Exterior Wall 1,010 sf $ 20.00 $ 20,200 Gas Station 36,000 cf $ 0.48 $ 17,300 Canopy Demolition 6,185 cf $ 0.24 $ 1,500 Underground Storage Tank Removal and Hauling $ 2,000 Paving 3,590 sy $ 8.85 $ 31,800 Hauling and Dump Fees 1,500 cy $ 16.05 $ 24,100 Contaminated soil removal and replacement $ 50,000 Retaining Wall 1,200 sf $ 18.50 $ 22,200 Total Demolition and Site Preperation $ 275,100 Costruction cost of New Building Q U $/U Subtotal Total Sitework Walks 5,600 sf $ 3.50 $ 19,600 Paving 28,000 sf $ 3.73 $ 104,400 Curb 1,400 If $ 22.50 $ 31,500 Lighting $ 20,000 Landscaping Allowance $ 20,000 Site Amenities Allowance $ 15,000 Utilities $ 25,000 $ 235,500 Building Cost Construction Cost-Shell&White envelope 14,850 sf $ 115.00 $ 1,707,750 $ 1,707,750 Contingency @ 10.0% $ 222,000 Total Construction Cost $2,165,250 Expenses Survey&Soil Borings $ 10,000 A/E Fees $ 216,525 Printing $ 20,000 Misc. $ 5,000 $ 251,525 Total Costruction cost of New Building $2,691,875 Land Cost $ 1,287,500 Developer Fee-5% $ 198,969 Construction Cost-Tenant Improvements 14,850 sf $ 60.00 $ 891,000 Final Total Project Cost $ 5,069,344 Cost Per Square Foot $ 341.37 TOWNCREST CONSTRUCTION SCHEDULE MONTH DESCRIPTION OF WORK June- 2012 City to approve TIF Assistance for the project July Architectural Plans begin August Bid Project and get final cost for end users to approve August Sign Final contracts with end users Sept Close on Properties, Begin demolition of Properties Oct Begin Sitework and Underground Utilities Nov Foundation &Electrical Groundwork Dec Building Structure, Exterior Skin, M/E Rough-In Jan-2013 Building Structure, Exterior Skin, M/E Rough-In Feb Building Structure, Exterior Skin, M/E Rough-In March Interior Construction, M/E Rough-in April Interior Construction, M/E Rough-in May Interior Finishes June Interior Finishes July Interior Finishes August Punch list& Misc Finish Items September Occupancy Hills Bank 131 Main Street Hills, Iowa 52235 and Trust Company 319-679-2291 April 25,2012 City of Iowa City 410 E Washington St Iowa City IA 52240 RE: Hodge Construction Company 711 S Gilbert St Iowa City IA 52240 After reviewing financial information and the proposed plans for construction in the Towncrest area of Iowa City, Hills Bank is pleased to provide a commitment of financing to Hodge Construction Company and or related entities for construction purposes. Loans to the company would not exceed 80%of the appraised value of the facilities upon completion. A construction loan will be secured by a first mortgage on the property and will also require personal guarantees. At the present time,the loan would bear an interest rate of 4.5%per annum for one year from closing. The commitment of this rate will be good for 45 days from the date of this letter. Upon completion of the project, it is anticipated that any part of the facility that is retained by the company will then be amortized over a period not to exceed 25 years. The interest rate for permanent financing will be determined at the time of extension. If you have any questions or if there is any way that I can be of additional assistance to you, please feel free to contact me. Sincerely, Tim N.Smith Senior Vice President TNS/cem Hills • Iowa City • Coralville • North Liberty• Kalona •Cedar Rapids• Lisbon • Mount Vernon• Marion •Wellman hillsbank.com 1-800-445-5725 EXHIBIT D MINIMUM IMPROVEMENTS AND USES On June 4, 2012,the Redeveloper submitted a Redevelopment proposal shown on Exhibit C for a private redevelopment project. The redevelopment proposal provided for a commercial structure with commercial and medical office space. The "Minimum Improvements" may now be more specifically defined as follows: 1. The project will consist of the acquisition and demolition of existing structures at 1020 William St. and 2611 Muscatine Ave. to construct a one story building approximately 14,850 SF in size for commercial and medical offices that complies with the Towncrest Design Plan. No less than two-thirds of the square footage shall be built for and occupied by medical offices with the remainder being available for any use allowed by the applicable zoning. 2 The Redeveloper shall provide, at a minimum, at least 50 parking spaces on site and shall dedicate right of way to the City at no cost on William St. for the creation of an additional 22 on street spaces perpendicular to the building at the City's cost. 28 EXHIBIT E LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY 2611 Muscatine Avenue, Iowa City: The North 140 feet of Lot 8, and the West 25 feet of the North 140 feet of Lot 9, all in Block 3, Towncrest Addition to Iowa City, Johnson County, Iowa, according to the recorded plat thereof. 1020 William Street,Iowa City: Commencing at an iron pin marking the Northwest corner of Block 3, Towncrest Addition, Iowa City, Iowa, according to the plat thereof recorded in Plat Book 4, Page 323, Johnson County Recorder's Office; thence on an assumed bearing of South 140.0 feet along the West line of said Block Three (3) to a P-K Nail marking the point of beginning; thence continuing south 144.40 feet along said West line of Block Three (3) to an iron pin; thence South 90°00'00" East 50.43 feet to an iron pin; thence South 6.00 feet to a P-K nail; thence South 90°00'00" East 95.45 feet to a P-K nail on the West line of the existing building; thence North 6.67 feet along said West building line to the centerline of an East-West common wall; thence South 90°00'00" East 44.63 feet along said common wall centerline and its easterly extension to a P-K nail on the East line of the said West 1/2 of Lot 7; thence North 0°07'20" West 146.92 feet along the East line of said West 1/2 of Lot 7 and its northerly extension to a P-K nail; thence South 89°03'00" West 190.22 feet to the Point of Beginning; subject to easements of record and to an easement for maintenance repair and operation of the sanitary sewer line now in place. 29 EXHIBIT F MINIMUM ASSESSMENT AGREEMENT 1020 William St. & 2611 Muscatine Ave. THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of , 2012, by and among the CITY OF IOWA CITY, IOWA, ("City"), MDK Development L.L.C., an Iowa limited liability corporation, ("Redeveloper"), and the CITY ASSESSOR of the City of Iowa City, Iowa("Assessor"). WITNESSETH: WHEREAS, it is contemplated that the Redeveloper will undertake the development of an area("Project") within the City and within the "Towncrest Urban Renewal Area"; and WHEREAS, the City is making a significant grant of funds to the Redeveloper which will allow the Redeveloper to construct the Project; and WHEREAS, the City will be reimbursed for such grant from the property tax revenues generated from the Project; and WHEREAS, pursuant to Iowa Code section 403.6 (2011), as amended, the City and the Redeveloper desire to establish a minimum actual value for the land locally known as 1020 William St. & 2611 Muscatine Ave. , and legally described in Exhibit E to the Agreement for Private Redevelopment; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the"Minimum Improvements"to be erected as a part of the development; NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 1. As of January 1, 2014, a full assessment shall be made fixing the minimum actual taxable value for assessment purposes for the land and "Minimum Improvements" to be constructed thereon by the Redeveloper at not less than$2,225,000 after taking into consideration any factors such as "roll backs" which would reduce the taxable value of the property ("Minimum Actual Value"). The parties hereto acknowledge and agree that construction of the "Minimum Improvements"will be substantially completed on or before December 31, 2013. 2. The Redeveloper recognizes that the grant to the Redeveloper pursuant to the Agreement is conditional upon sufficient property taxes being generated by this Project to repay the General Fund loan to make such grant. The City will need property taxes from the Project in the amounts and at the times set forth in Schedule Y to this Minimum Assessment Agreement. If for any reason the property taxes are less than the amount set forth on Schedule Y for any fiscal 30 year, the assessor shall increase the assessed value of the Project for the next fiscal year in an amount to cover such property tax deficiency. If for any reason, the assessor does not so increase the assessed value, Redeveloper shall make a payment to the City in the amount of the difference between the property tax revenue and the cost of the loan payment. 3. The Redeveloper contemplates that the Project will consist of three condominium units. The Redeveloper agrees that at the time of the execution of the declaration required by Chapter 499B Horizontal Property (Condominiums) of the Code of Iowa 2011, an attachment to the declaration will be executed by the Redeveloper, the City and the City Assessor allocating a portion of the Minimum Actual Value to each unit. 4. The Minimum Actual Value (as adjusted pursuant to paragraph 2 hereof) herein established shall be of no further force and effect and this Minimum Assessment Agreement shall terminate on April 1, 2035 when the final installment on the General Fund loan is made, or when the loan is paid in full, whichever is earlier. Nothing herein shall be deemed to waive the Redeveloper's rights under Iowa Code section 403.6(19) (2011), as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value (as adjusted pursuant to paragraph 2 hereof) established herein. In no event, however, except as set forth in the first paragraph of this Section 4 shall the Redeveloper seek to reduce the actual value assigned below the Minimum Actual Value (as adjusted pursuant to paragraph 2 hereof) established herein during the term of this Agreement. 5. This Minimum Assessment Agreement shall be promptly recorded by the Redeveloper with the Recorder of Johnson County, Iowa. The Redeveloper shall pay all costs of recording. 6. Redeveloper has provided a title opinion to the City listing all lienholders of record as of the date of this Assessment Agreement and all such lienholders have signed consents to this Assessment Agreement, which consents are attached hereto and made a part hereof. 7. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended to, or shall be construed as, modifying the terms of the Agreement for Private Redevelopment between the City and Redeveloper. 8. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayor 31 ATTEST: By: Marian K. Karr, City Clerk MDK DEVELOPMENT L.L.C. By: Mike Hodge ATTEST: By: STATE OF IOWA ) ) COUNTY OF JOHNSON ) On this day of , 20_, before me a Notary Public in and for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public in and for the State of Iowa STATE OF IOWA ) )SS COUNTY OF JOHNSON ) This instrument was acknowledged before me on this day of , 20_, by Mike Hodge as member of MDK Development L.L.C. Notary Public in and for the State of Iowa CERTIFICATION OF ASSESSOR 32 The undersigned, having reviewed the plans and specifications for the "Minimum Improvements" to be constructed and the market value assigned to the land upon which the "Minimum Improvements" are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of "Minimum Improvements" to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the redevelopment shall not be less than $2,225,000 after taking into consideration any factors such as "roll-backs" which would reduce the taxable value of the property. Of this amount, four hundred thousand Dollars ($400,000) is determined to be the value of the land and one million eight hundred twenty-five thousand Dollars ($1,825,000) the value of the building thereon until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Assessor for Iowa City, Iowa Date STATE OF IOWA ) COUNTY OF JOHNSON ) Subscribed and sworn to before me by , Assessor for Iowa City, Iowa. Notary Public in and for Johnson County, Iowa Date 33 Schedule Y 1020 William St.&2611 Muscatine Ave. Full assessment begins on January 1,2014($2,225,000 valuation) TIF millage rate per thousand: 31.85765 TIF Rate 31.85765/ Payment Dates Increment thousand Fiscal Year Total 10/1/2012 4/1/2013 10/1/2013 4/1/2014 10/1/2014 4/1/2015 10/1/2015 $1,339,120 $21,331 4/1/2016 $1,339,120 $21,331 $42,661 10/1/2016 $1,339,120 $21,331 4/1/2017 $1,339,120 $21,331 $42,661 10/1/2017 $1,339,120 $21,331 4/1/2018 $1,339,120 $21,331 $42,661 10/1/2018 $1,339,120 $21,331 4/1/2019 $1,339,120 $21,331 $42,661 10/1/2019 $1,339,120 $21,331 4/1/2020 $1,339,120 $21,331 $42,661 10/1/2020 $1,339,120 $21,331 4/1/2021 $1,339,120 $21,331 $42,661 10/1/2021 $1,339,120 $21,331 4/1/2022 $1,339,120 $21,331 $42,661 10/1/2022 $1,339,120 $21,331 4/1/2023 $1,339,120 $21,331 $42,661 10/1/2023 $1,339,120 $21,331 4/1/2024 $1,339,120 $21,331 $42,661 10/1/2024 $1,339,120 $21,331 4/1/2025 $1,339,120 $21,331 $42,661 10/1/2025 $1,339,120 $21,331 4/1/2026 $1,339,120 $21,331 $42,661 10/1/2026 $1,339,120 $21,331 4/1/2027 $1,339,120 $21,331 $42,661 10/1/2027 $1,339,120 $21,331 4/1/2028 $1,339,120 $21,331 $42,661 34 10/1/2028 $1,339,120 $21,331 4/1/2029 $1,339,120 $21,331 $42,661 10/1/2029 $1,339,120 $21,331 4/1/2030 $1,339,120 $21,331 $42,661 10/1/2030 $1,339,120 $21,331 4/1/2031 $1,339,120 $21,331 $42,661 10/1/2031 $1,339,120 $21,331 4/1/2032 $1,339,120 $21,331 $42,661 10/1/2032 $1,339,120 $21,331 4/1/2033 $1,339,120 $21,331 $42,661 10/1/2033 $1,339,120 $21,331 4/1/2034 $1,339,120 $21,331 $42,661 10/1/2034 $1,339,120 $21,331 4/1/2035 $1,339,120 $21,331 $42,661 TOTAL: $853,224 35 EXHIBIT G MEMORANDUM OF AGREEMENT FOR PRIVATE REDEV:LOPMENT WHEREAS, th City of Iowa City, Iowa (the "City") and DK Development L.L.C. (the "Redeveloper"), di on or about the day of , 2012, make, execute and deliver an Agreement fo Private Redevelopment (the "Agreeme '), wherein and whereby the Redeveloper agreed, in a ordance with the terms of the Agree- ent and the Towncrest Urban Renewal Plan(the "Plan"), o develop certain real property loc. -d within the City and within the Towncrest Urban Renewal ea and as more particularly desc bed as: NEED and WHEREAS, the term of th Agreement s .11 commence on the 20th day of June, 2012 and terminate on April 1, 2035 or w'en the loan i- paid off, whichever is earlier; and WHEREAS, the City, and t' e Rede'eloper desire to record a Memorandum of the Agreement referring to the Redevelop °ent P operty and their respective interests therein. NOW, THEREFORE, IT IS AG ED AS FOLLOWS: 1. That the recording of tliis emorandum of Agreement for Private Redevelopment shall serve as notice to the p}tblic th t the Agreement contains provisions restricting Redevelopment and use of the :Redevelop ent Property and the improvements located and operated on such Redevelopment Property, . • further subjects the Redevelopment Property to a Minimum Assessment Agreement entered int• under the authority of Iowa Code Chapter 403, in which the City and the Redeveloper (and any s ccessors or assigns) agree that, as of January 1, 2014, a full assessment shall be made fixing t - minimum actual value of the Redevelopment Property and all improvements located thereof r calculation of real property taxes at not less than $2,225,000 after taking into consideration . 'y factors such as "roll-backs" which would reduce the taxable value of the property. 2. That' all of the provisions of the Ag eement and any subsequent amendments thereto, if any, even though not set forth herein, a - by the filing of this Memorandum of Agreement for P'r'ivate Redevelopment made a part her I f by reference, and that anyone making any claim against any of said Property in any manner w atsoever shall be fully advised as to all of the terms and conditions of the Agreement, and any . endments thereto, as if the same were fully set forth herein. 3. That a copy of the Agreement and any subs,quent amendments thereto if any, shall be maintained on file for public inspection during ordin. y business hours in the office of the City Clerk, City Hall, Iowa City, Iowa. 36 IN WITNESS WHEREOF, the City and the Redeveloper have executed this Memorandum of Agreement for Private Redevelopment as of the day of June, 2012. (SEAL) CITY OF IOWA CITY, OWA By: Matthew J. Hayek, :yor ATTEST: By: Mar': K. Karr, City Clerk \ MD. DEVELOPMENT L.L.C. ike Hodge STATE OF IOWA ) ) COUNTY OF JOHNSON ) On this day of i , 20_, before me a Notary Public in and for said County, personally appeared 'atthew J. Hayek and Marian K. Karr, to me personally known, who being ,duly sworn, di. say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Mu'icipal Corporation, created and existing under the laws of the State of Iow and that the seal of 1 ed to the foregoing instrument is the seal of said Municipal Corporatiol , and that said instrume t was signed and sealed on behalf of said Municipal Corporation by authority and resolution o 'ts City Council and said Mayor and City Clerk acknowledged said instrument to be the free act .nd deed of said Municipal Corporation by it voluntarily executed. Notary Public i and for the State of Iowa STATE OF IOWA ) )SS COUNTY OF JOHNSON ) This instrument was acknowledged before me on this day o , 20 , by Mike Hodge member of MDK Development L.L.C. Notary Public in and for th State of Iowa 37 EXHIBIT G MEMORANDUM OF AGREEMENT FOR PRIVATE REDEVELOPMENT WHEREAS, the City of Iowa City,Iowa (the "City") and MDK Development L.L.C. (the "Redeveloper"), did on or about the 4 aay of 7t,z iA E , 2012, make, execute and deliver an Agreement for Private Redevelopment (the "Agreement"), wherein and whereby the Redeveloper agreed, in accordance with the terms of the Agreement and the Towncrest Urban Renewal Plan(the "Plan"), to develop certain real property located within the City and within the Towncrest Urban Renewal Area and as more particularly described as: NEED and WHEREAS, the term of this Agreement shall commence on the 20th day of June, 2012 and terminate on April 1, 2035 or when the loan is paid off,whichever is earlier; and WHEREAS, the City, and the Redeveloper desire to record a Memorandum of the Agreement referring to the Redevelopment Property and their respective interests therein. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. That the recording of this Memorandum of Agreement for Private Redevelopment shall serve as notice to the public that the Agreement contains provisions restricting Redevelopment and use of the Redevelopment Property and the improvements located and operated on such Redevelopment Property, and further subjects the Redevelopment Property to a Minimum Assessment Agreement entered into under the authority of Iowa Code Chapter 403, in which the City and the Redeveloper (and any successors or assigns) agree that, as of January 1, 2014, a full assessment shall be made fixing the minimum actual value of the Redevelopment Property and all improvements located thereof for calculation of real property taxes at not less than $2,225,000 after taking into consideration any factors such as "roll-backs" which would reduce the taxable value of the property. 2. That all of the provisions of the Agreement and any subsequent amendments thereto, if any, even though not set forth herein, are by the filing of this Memorandum of Agreement for Private Redevelopment made a part hereof by reference, and that anyone making any claim against any of said Property in any manner whatsoever shall be fully advised as to all of the terms and conditions of the Agreement, and any amendments thereto, as if the same were fully set forth herein. 3. That a copy of the Agreement and any subsequent amendments thereto if any, shall be maintained on file for public inspection during ordinary business hours in the office of the City Clerk, City Hall, Iowa City, Iowa. 36 y k IN WITNESS WHEREOF, the City and the Redevel per have executed this Memorandum of Agreement for Private Redevelopment as of the 37 day of June, 2012. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, a or ATTEST: By: 242-. � A'. *-' —/1 Marian K. Karr, City Clerk MDK DEVELOPM NT L.L.C. -�'��'U '1 ,t By: Mike Hodge i STATE OF IOWA ) ) COUNTY OF JOHNSON ) On this a'7• J' day of Jun/F , 20 49, before me a Notary Public in and for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. o,,r'U6t SONDRAE FORT z Commission Number 159791 .Srrndn� My 3 1-7Agw 1 5�$ Notary Public in and for the State of Iowa STATE OF IOWA ) )SS COUNTY OF JOHNSON ) This instrument was acknowledged before me on ti's Zlo day of Qu(\-L,, , 2012., by Mike Hodge member of MDK Developme '111119■41k1 41 i _4 las _....._ sa,idx3 uoss w u);tvi Notary Public in and for the State If Iowa t08t�a4wfN ucss;unu03?, A3213'H N31SdI)1 ? 37 EXHIBIT H OPINION OF COUNSEL City of Iowa City Iowa City, Iowa RE: Agreement for Private Redevelopment by and between the City of Iowa City, Iowa and MDK Development L.L.C. City Representatives: We have acted as counsel for MDK Development L.L.C., an Iowa limited liability company (the "Company"), in connection with the execution and delivery of a certain Agreement for Private Redevelopment (the "Redevelopment Agreement") between the Company and the City of Iowa City, Iowa(the "City") dated as of , 2012. We have examined the original certified copy, or copies otherwise identified to our satisfaction as being true copies, of the following: (a) The organization and operating agreement of the Company; (b) Resolutions of the Company at which action was taken with respect to the transactions covered by this opinion; (c) The Redevelopment Agreement; and such other documents and records as we have deemed relevant and necessary as a basis for the opinions set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: 1. The Company was duly organized and validly exists as a limited liability company under the laws of the State of Iowa and is qualified to do business in the State of Iowa. The Company has full power and authority to execute, deliver and perform in full the Redevelopment Agreement; and the Redevelopment Agreement was duly and validly authorized, executed and delivered by the Company and, assuming due authorization, execution and delivery by the City, is in full force and effect and is a valid and legally binding instrument of the Company enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. 2. The execution, delivery and performance by the Company of the Redevelopment Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or in default under, the articles of organization and operating agreement of the Company or 38 any indenture, mortgage, deed of trust, indebtedness, agreement,judgment, decree, order, statute, rule, regulation or restriction to which the Company is a party or by which it or its property is bound or subject. 3. There are no actions, suits or proceedings pending or threatened against or affecting the Company in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective) , financial position or results of operations of the Company or which in any manner raises any questions affecting the validity of the Agreement or the Company's ability to perform its obligations thereunder. Very truly yours, 39 EXHIBIT I ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment") is dated and effective as of ("Contract Date")by and between MDK Development, L.L.C. ("Seller") and ("Buyer"). RECITALS: A. Seller owns Unit , Condominiums, as described in Exhibit"A" attached hereto and incorporated herein by this reference and all improvements thereon("Real Property"). B. The Real Property is part of a redevelopment project completed by Seller and is governed by the terms of that certain Agreement for Private Redevelopment, dated the day of June, 2012 between the City of Iowa City and Seller, (hereinafter the "TIF Agreement"). C. Pursuant to the terms of the TIF Agreement, as consideration for the financing provided by the City of Iowa City to the redevelopment project, the Real Property is subject to a certain Minimum Assessment Agreement and, in the event that the real property tax revenue is insufficient to reimburse the City of Iowa City for its investment in the Real Property, Seller is obligated to reimburse the City of Iowa City for the amount of the difference between the property tax revenue and the cost of the bonds, notes, loans or other obligations (hereinafter "shortfall") issued by the City in connection with said financing. D. Buyer is now purchasing the Real Property and is assuming the responsibilities of Seller under the TIF Agreement with respect to the Real Property. NOW,THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 1. Seller hereby sells, transfers, assigns, and conveys to Buyer all of Seller's right,title, and interest as the owner of Unit , Condominiums in the TIF Agreement. 2. Seller hereby delegates to Buyer, and Buyer hereby accepts and assumes and agrees to perform, all of Seller's duties and obligations accruing on and after the Contract Date under the terms of said TIF Agreement, including but not limited to the obligation to reimburse the City of Iowa City for any shortfall. 3. Seller hereby covenants and agrees to defend, indemnify, and hold Buyer harmless from and against any and all liability, damage, cost, and expense, including, without limitation, reasonable attorneys' fees and court costs, and any claim therefor, whether known or unknown, disclosed or undisclosed, latent or patent, in respect of any of Seller's breaches of its duties or obligations with respect to the TIF Agreement prior to the Contract Date. 40 4. Buyer hereby covenants and agrees to defend, indemnify, and hold Seller harmless from and against any and all liability, damage, cost, and expense, including, without limitation, reasonable attorneys' fees and court costs, and any claim therefor, whether known or unknown, disclosed or undisclosed, latent or patent, in respect of any of Buyer's breaches of its duties and obligations with respect to the TIF Agreement on or subsequent to the Contract Date. 5. This Assignment shall be binding on and inure to the benefit of the parties hereto and of their respective successors and permitted assigns, as well as to the benefit of the City of Iowa City, Iowa. 6. This Assignment may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, Buyer and Seller respectively caused their duly authorized representatives to sign this Agreement as of the day and year first above written. Effective as of the day of 201_. "Seller" MDK DEVELOPMENT, L.L.C. BY: "Buyer" BY: 41 WEST ELEVATION r.le NORTH ELEVATION r.16s ELEVATIONS N O r. ica HODGETOWNCREST NEUMANN MONSON,PC 4- 12 SOUTH ELEVATION V - leO I �T �i I - -1 0 1 PARKING SUMMARY: 80 provided 55 req'd for spaces A & B combined 25 available for space C SITE PLAN O V = aaa HODGETOWNCREST NEUMANN MONSON,PC -o., I ®, CITY OF IOWA CITY 20 ..� MEMORANDUM Date: June 14, 2012 To: Tom Markus, City Manager From: Tracy Hightshoe, Community Development Planne�_7* Re: Request for Financial Assistance for the Redevelopment of Towncrest Properties Introduction: The City received a request for financial assistance from MDK Development, LLC for a redevelopment project located at 1020 William St. and 2611 Muscatine Ave. The proposal is for a one -story medical office building with 14,850 square feet. The developer is requesting $950,000 in financial assistance for the project. The Developer's Agreement is attached for your review and approval. History /Background: The site is within the Towncrest Urban Renewal area and is currently the location of the Sinclair Gas Station and a building owned by ACT used primarily for storage. The proposed building will provide retail /medical office space for three building occupants with 6,605, 5,000 and 3,244 square feet respectively. The estimated project cost is $5,070,000 and includes the cost of land and business acquisition, site remediation of underground storage tanks, demolition of existing buildings and the construction of a new medical office facility. Discussion of Solutions: The proposed project will increase the assessed valuation of the property from its current $885,800 to $2,225,000, the Minimum Required Assessment under the Redevelopment Agreement. The proposed redevelopment meets the City's Economic Development objectives: increases the taxable valuation of the property, retains /creates jobs which have wages and benefits higher than the County median, redevelops a blighted property and is a desirable project within the Towncrest Urban Renewal Area. The Developer requests $950,000 in financial assistance to enable the project to proceed. Financial Impact: $325,000 of the $950,000 requested will come from the Towncrest Capital Improvement Plan Catalyst. The remainder, $625,000, will be in the form of Tax Increment Financing (TIF) provided to the developer as the project proceeds and final payment upon completion and sale or lease of the three condominiums. The City will finance the TIF portion through a 20 -year loan from the General Fund at 3.25% interest. Recommendation: The City Council Economic Development Committee reviewed this request at their June 12, 2012 meeting. The committee recommended approval of this proposal on a 3 -0 vote. The redevelopment agreement, developer's proposal, staff memo and financial analysis completed by the National Development Council are attached for your review. Staff recommends approval of the redevelopment agreement at your June 19, 2012 City Council meeting. r t.~• A CITY OF IOWA CITY MEMORANDUM Date: June 8, 2012 To: City Council Economic Development Committee From: Wendy Ford, Economic Development Coordinator kf_7K Tracy Hightshoe, Community Development Planner Re: Request for financial assistance for redevelopment of Towncrest properties: 1020 William Street and 2611 Muscatine Avenue We have received a request for financial assistance from Kevin Digmann, manager of MDK Development, LLC, for a redevelopment project located at 1020 William Street and 2611 Muscatine Avenue in the Towncrest Urban Renewal Area in Iowa City. This is the current location of Sinclair Gas Station and a building directly to the south, owned and used mostly for storage by ACT. The proposal is for a one -story medical office building with 14,850 square feet. The proposed building, shown in the following materials will provide retail /medical office space for three building occupants with 6,605, 5,000 and 3,244 square feet, respectively. The estimated project cost is $5,070,000 and includes the cost of land and business acquisition, site remediation of underground storage tanks and the demolition of existing buildings on the site and construction. The project would increase the assessed valuation of the property from its current $885,880 to an estimated $2,127,240. The current property taxes paid annually on the property are $36,102. The total anticipated property tax with the completed project is $86,693 annually, and is estimated to increase approximately 2% every other year thereafter. The owner will be providing the required parking spaces for the medical office users and will accommodate that requirement with a total of 58 parking spaces on site, next to, or behind the building. In addition, the owner will be dedicating right of way on William Street in order to create an additional 22 on street spaces perpendicular to the building (see site plan attached). The developer is formally requesting $950,000 in financial assistance for the project. In 2011, the City Council created a set of financial programs to assist projects in the Towncrest Urban Renewal Area (URA) (resolution #11 -264). Because this is among the first significant private projects in the Towncrest URA, several financing tools are available: Towncrest URA Gap Financing for Catalyst projects $300,000 Towncrest URA Predevelopment Design and Environmental Assistance (a matching grant, not to exceed) 25,000 Tax Increment Financing Total 625,000 $950,000 The annual TIF increment generated by the project will be enough to repay the City's bonded indebtedness within 20 years. The developer has agreed to a minlmum assessment agreement, which will guarantee the property taxes required to retire the City's indebtedness. The following analysis examines this proposal against the City Council's economic development process and policies which were adopted on December 6, 2011. June 8, 2012 Page 2 Financial analysis The City of Iowa City economic development process and policies are intended to establish standard procedures and a framework for granting financial incentives. This is intended to ensure that the City's financial resources are used as efficiently and effectively as possible. The focus of the financial incentives policy is achieving community objectives. Following is a summary of the consistency of the proposed Medical Office Building redevelopment project at Muscatine Avenue and William Street with the stated community objectives of the economic development process and policies: 1. Increase taxable valuation of property, especially commercial and industrial. This Towncrest project will be a one -story medical office building on two parcels of land at Muscatine Avenue and William Street. The total estimated assessed value of the property will increase from $885,880 to an estimated $2,127,240. 2. Increase the number of jobs which have wages and fringe benefits exceeding the county median. This project ensures that the high quality jobs of optometrists and dentists are retained in the Towncrest area. The investment in the medical office building will make the area more attractive for further investment by others, including those already located in Towncrest. One goal of the Towncrest Urban Renewal Plan is to stem the tide of the medical offices choosing to leave and relocate on the fringes of Iowa City or in neighboring communities. 3. Redevelopment of blighted property. The two parcels that comprise the project site are a gas station and a former office building turned storage facility. The Williams Street property meets the State Code definition of blightedness which states "faulty lot layout in relation to size, adequacy, accessibility, or usefulness," because the property line separating it from the next building goes through a shared wall and will require substantial remediation to correct. The Muscatine Avenue property may fit the definition because of "insanitary or unsafe conditions; deterioration or other site improvements" depending on the status of the underground gasoline storage tanks there (State Code 403.17). 4. Desirable projects which might not otherwise occur without financial incentives. The Towncrest Urban Renewal Plan cites medical office buildings as desirable projects for the area. Because of the high cost of land and gas station business acquisition, coupled with site remediation of underground storage tanks and the demolition of existing buildings on the site, this project would not occur without incentives. Standard operating procedure for requests for economic development financial assistance The request for financial assistance for The Towncrest Medical Office Building has been through the standard operating procedure Council established for economic development financial assistance. In terms of Intake and evaluation, we have been involved for months negotiating project elements with the developer. We have worked with the developer to maximize the use of the space considering parking needs and user requirements. We have completed an in -depth financial gap analysis of the project using the services of the National Development Council, which is summarized in a following attachment. The due diligence phase of our evaluation is aided by the fact that the applicant is a well - known Iowa City developer with whom the City has worked on other projects for more than five years. For this particular project, we encouraged the developer to consider a project in June 8, 2012 Page 3 Towncrest because we felt they had the expertise, energy and enthusiasm to carry off a Towncrest Urban Renewal catalyst project. The development agreement, when presented to the City Council, will include performance measures that require the developer to complete the building in accordance with the concept plan proposed. The developer will agree to a minimum assessment agreement and provide additional securities as stipulated in the development agreement. Gap analysis and additional evaluation criteria The developer has been required to produce a gap analysis of why the $950,000 in requested financial assistance is necessary. The City Council's stated goal is for the City's financial assistance to be the last dollars in, and that "but for" the City's assistance the project would not happen. The gap analysis is summarized in the attached report from the National Development Council. The City Council established several goal's, objectives, and strategies for TIF projects. The developer's equity is required to be at least equal or exceed the amount of TIF funds made available for the project, and this has been achieved on a roughly 20% TIF funds request to 80% developer equity basis. The requested City funding can be assembled with $300,000 from the Towncrest Gap Financing for Catalyst Assistance program and $25,000 from the Predevelopment Design and Environmental Assistance program established in 2011, with the remaining $625,000 from the sale of bonds to be repaid to the City by Tax Increment Financing. It is a goal but not a requirement for TIF funding to not exceed more than 50% of the TIF increment created. This project will require most of the TIF increment created by the project over 15 — 18 years to fund the TIF portion plus related finance charges to the City, depending on how the taxable assessment exceeds the minimum assessment in the development agreement. The eligibility goals, objectives, and strategies of the City's economic development process and policies call out office uses, retail uses, and housing which support stated economic development goals as eligible TIF projects. Of these, this project's proposed medical offices make it eligible. Summary The request for financial assistance for the Towncrest Medical Office Building redevelopment project has been submitted for your review according to the City's approved economic development process and policies. Staff recommends approval of the request. If approved at your June 12 Economic Development Committee meeting, it will be forwarded to the City Council, along with a Development Agreement for consideration at the June 19 City Council meeting. Staff and the applicant will be available at your June 12 EDC meeting to answer any questions. Attachments: 1. Developer's Request for Financial Assistance, 2. Financial Gap Analysis cc: Tom Markus Geoff Fruin Kevin O'Malley Jeff Davidson Kevin Digmann MDK DEVELOPMENT, L.L.C. 711 South Gilbert St. Iowa City, IA 52240 June 4, 2012 City of Iowa City c/o Jeff Davidson, Director of Planning and Community Development 410 E Washington St. Iowa City, IA 52240 RE: Towncrest Redevelopment Project Dearleff, MDK Development, L.L.C., whose main principals are Mike Hodge, Dave Hodge, and Kevin Digmann, are requesting the City's financial assistance for a new 14,850 square foot medical /office building with 80 parking spaces in the Towncrest area. We currently have under contract 102 Williams St. (ACT Building) and 2611 Muscatine Ave. (Sinclair gas station). Our plan is to demolish the existing buildings and site. The contractor for the project will be Hodge Construction and Architect will be Neumann Monson. The building will be completed as a commercial condominium and the spaces may be sold to end users. The total project cost is estimated at approximately $5,000,000. Since this project is a redevelopment of two properties into a green field, we are seeking City assistance of $950,000 for pre - development expenses and to reduce the acquisition and demolition cost to a comparable commercial lot in the Iowa City area. The current assessed value of existing sites combined is $876,950. Enclosed you will find: 1. Building Elevation 2. Site Plan 3. Summary of Land cost and Comparable other sites 4. Cost estimate for the Project 5. Preliminary Construction Schedule 6. Commitment Letter from Hills Bank This project would be a great start to the City's overall plan for redevelopment of the Towncrest area. If approved, we would begin construction this fall with occupancy fall 2013. If you have any questions please call me at 631 -0548 or email kdiemann @yhoo.com. Sin r , K anri Manager, MDK, Development, L.L.0 Proposal for the Redevelopment of 1020 Williams St. & 2611 Muscatine Ave. Request for financial assistance totaling $950,000 through Tax Increment Financing and Towncrest Development incentives. 1) Signed letter of interest submitted by the Developer. Attached. 2) Project Summary Developer plans to acquire 1020 Williams St. and 2611 Muscatine Ave., demolish the existing on site structures and build an approximate 14,850 sf building. The proposed new building will be one story with approximately 58 ground level parking spaces. There will be approximately 22 on street parking spaces. The exterior fagade, brick veneer, will meet the Towncrest Design Plan requirements. 3) Site plan with front elevation. Attached 4) Description of the Development Team Project Owner, Developer and General Contractor: Hodge Construction, Mike Hodge, 711 S. Gilbert St., Iowa City, Iowa. 319.354.2233, mehodge @ia.net. Architect: Neumann Monson, 221 E College St., Suite 303, Iowa City, IA 52240 5) Evidence of site control. Evidence provided to City previously, now in possession of Developer. 6) Potential issues related to zoning, environmental hazards, utilities or other infrastructure issues Zoning: Setback of less than 10 feet is requested. Exact amount of setback to be determined with final site plan. Mixed use zoning required for a setback less than 10 feet. Current zoning is CC -2. Environmental hazards: Project involves removing underground petroleum storage tanks. 9) 7) Development budget. Attached Summary of capital funding sources. Included is lender commitment. TOTAL - Must equal "use of funds" . 1 $5,070,000 Based on conversations with local lenders an Urban Renewal Revenue Note is not feasible as the developer is not able to guarantee the financial gap that exists with this project. Up to $25,000 of the $950,000 in pre - development expenses requested for environmental assessment and architectural expenses incurred before construction commences. Operating proforma. NA. Three commercial condominiums will be sold upon completion of construction. 10) The end users of the building will be for medical or office use. The also may be a small retail users. 11) Preliminary schedule for the development. Attached. Funding Funding Source & Type of Funds: A Amount Bank: _Hills Bank $ $3,680,000 Applicant Contribution of Equity (private) $ $440,000 Other Private Resources $ $0 (please list) City of Iowa City $ $950,000 - - - - - - -------- --- - ------- - --------- -._. ....._..... Based on conversations with local lenders an Urban Renewal Revenue Note is not feasible as the developer is not able to guarantee the financial gap that exists with this project. Up to $25,000 of the $950,000 in pre - development expenses requested for environmental assessment and architectural expenses incurred before construction commences. Operating proforma. NA. Three commercial condominiums will be sold upon completion of construction. 10) The end users of the building will be for medical or office use. The also may be a small retail users. 11) Preliminary schedule for the development. Attached. z O a W J W U) w z O Lij Q w O CO z O Q w J W 2 F- ir O ZED r z O U) z O z z Q w z U) w cr U Z Z O O F-- w > C3 C O w = T--T" T11• �I. SITE PLAN 1" = 40'-0" HODGE TOWNCREST A -Q -17 1-711 PARKING SUMMARY: 80 provided 55 req'd for spaces A & B combined 25 available for space C N T NEUMANN MONSON, PC SUBJECT SITE Location 2611 Mucatine - Sinclar Station 1020 Williams (ACT Building) Towncrest Medical Plaza Land Pricing and Comparisions Parcel size Price Price /sq ft 17,500 $ 537,500 $ 30.71 28,263 $ 750,000 $ 26.54 Total site cost 45,763 $ 1,287,500 $ 28.13 Demolition and site preperation $ 275,100 Cost to ready site to shovel ready 45,763 $ 1,562,600 34.15 City assistance $ (950,000) Net Land Price 45,763 $ 612,600 13.39 COMPARABLE SITES Location Parcel size Asking Price Price /sq ft Lot 49 Old Town Village 50,965 $ 650,000 $ 12.75 2507 N Dodge St 51,401 $ 295,555 $ 5.75 2509 N Dodge St 87,120 $ 500,940 $ 5.75 Average price per sq ft for other sites 189,486 1,446,495 $ 7.63 Hodge Construction - Towncrest Development Estimate of Probable Cost Demolition and Site Preparation Environmental Assessment Demolition ACT Building Relocate electrical service Reconstruct Exterior Wall Gas Station Canopy Demolition Underground Storage Tank Removal and Hauling Paving Hauling and Dump Fees Contaminated soil removal and replacement Retaining Wall Total Demolition and Site Preparation Costruction cost of New Building Sitework Walks Paving Curb Lighting Landscaping Allowance Site Amenities Allowance Utilities Building Cost Construction Cost - Shell & White envelope Contingency @ 10.0% Total Construction Cost Expenses Survey & Soil Borings A/E Fees Printing Misc. Total Costruction cost of New Building Land Cost Developer Fee - 5% Construction Cost - Tenant Improvements Final Total Project Cost Cost Per Square Foot Q U $/U Subtotal Total $ 25,000 148,800 cf $ 0.48 $ 71,000 $ 10,000 1,010 sf $ 20.00 $ 20,200 36,000 cf $ 0.48 $ 17,300 6,185 cf $ 0.24 $ 1,500 $ 2,000 3,590 sy $ 8.85 $ 31,800 1,500 cy $ 16.05 $ 24,100 $ 50,000 1,200 sf $ 18.50 $ 22,200 $ 275,100 Q U $/U Subtotal Total 5,600 sf $ 3.50 $ 19,600 28,000 sf $ 3.73 $ 104,400 1,400 If $ 22.50 $ 31,500 $ 20,000 $ 20,000 $ 15,000 $ 25,000 $ 235,500 14,850 sf $ 115.00 $ 1,707,750 $ 1,707,750 $ 222,000 $ 2,165,250 $ 10,000 $ 216,525 $ 20,000 $ 5,000 $ 251,525 $ 2,691,875 $ 1,287,500 $ 198,969 14,850 sf $ 60.00 $ 891,000 $ 5,069,344 $ 341.37 TOWNCREST CONSTRUCTION SCHEDULE MONTH DESCRIPTION OF WORK June - 2012 City to approve TIF Assistance for the project July Architectural Plans begin August Bid Project and get final cost for end users to approve August Sign Final contracts with end users Sept Close on Properties, Begin demolition of Properties Oct Begin Sitework and Underground Utilities Nov Foundation & Electrical Groundwork Dec Building Structure, Exterior Skin, M/E Rough -In Jan - 2013 Building Structure, Exterior Skin, M/E Rough -In Feb Building Structure, Exterior Skin, M/E Rough -In March Interior Construction, M/E Rough -in April Interior Construction, M/E Rough -in May Interior Finishes June Interior Finishes July Interior Finishes August Punchlist & Misc Finish Items September Occupancy Hills Bank and Trust Company April 25, 2012 City of Iowa City 410 E Washington St Iowa City IA 52240 RE: Hodge Construction Company 711 S Gilbert St Iowa City IA 52240 131 Main Street Hills, Iowa 52235 319- 679 -2291 After reviewing financial information and the proposed plans for construction in the Towncrest area of Iowa City, Hills Bank is pleased to provide a commitment of financing to Hodge Construction Company and or related entities for construction purposes. Loans to the company would not exceed 80% of the appraised value of the facilities upon completion. A construction loan will be secured by a first mortgage on the property and will also require personal guarantees. At the present time, the loan would bear an interest rate of 4.5% per annum for one year from closing. The commitment of this rate will be good for 45 days from the date of this letter. Upon completion of the project, it is anticipated that any part of the facility that is retained by the company will then be amortized over a period not to exceed 25 years. The interest rate for permanent financing will be determined at the time of extension. If you have any questions or if there is any way that I can be of additional assistance to you, please feel free to contact me. Sincerely, Tim N. Smith Senior Vice President TNS /cem Hills - Iowa City - Coralville - North Liberty - Kalona - Cedar Rapids - Lisbon - Mount Vernon - Marion - Wellman hillsbank.com 1- 800 - 445 -5725 MEMORANDUM oil Date: June 6, 2012 To: Jeff Davidson, Director, Planning & Community Development, City of Iowa City From: Tom Jackson, Director, National Development Council Raquel Favela, Director, National Development Council CC: Steve Long, Community Development Coordinator, City of Iowa City Tracy Hightshoe, Community Development Planner, City of Iowa City RE: Review of Request for Financial Assistance for Towncrest Medical Office Building Development at Muscatine Avenue and Williams Street At your request, NDC has reviewed the request for $950,000 in gap financing assistance submitted by MDK Development LLC /Hodge for the multi -unit, medical office condominium building (the "project ") proposed for the corner of Muscatine Avenue and Williams Street in the Towncrest redevelopment area. NDC's review concluded with an analysis of the updated materials submitted by MDK /Hodge and transmitted by City staff on June 4, 2012. NDC also reviewed several preliminary proposals for the project site and met with Kevin Digman of MDK /Hodge and City staff on multiple occasions to discuss the project's specifics, including project costs, financing sources and condo sale scenarios. Follow -up conversations by phone and email were conducted to secure additional information for our review. As proposed, the project will purchase, demolish and remediate the parcels of land located at the corner of Muscatine and Williams that are currently occupied by a Sinclair gas station and a building owned by ACT. A 14,850 medical office building will be constructed on the site at a total project cost of $5,069,344. The developer expects to sell the building to interested medical practices as three (3) condo units. While executed sales contracts for the condos and an as- complete appraisal are not yet available, information submitted by the developer includes evidence of a preliminary financing commitment from Hills Bank for up to 80% of the as- complete appraised value of the project with an interest rate during construction of 4.25%. MDK /Hodge has estimated the total bank financing at $3,680,000 and has offered to invest owner equity in the amount of $440,000. To complete the financing sources in an amount equal to the proposed total project cost, the developer has requested $950,000 in gap financing assistance from the City. Given the developer's estimate of total construction financing and the bank's underwriting criterion of an 809'o maximum loan to value ratio, an as- complete fair market value of $4.6 million has been calculated for the project. Assuming that the total sales price of the three (3) condominiums would match this value — and given the proposed owner equity and City assistance amounts proposed by the developer, sources and uses and associated developer returns are estimated as follows: Total Project Cost $5,069,344 Sources Bank $3,680,000 Developer Equity 440,000 City Assistance 950,000 Total Sources $5,070,000 NATIONAL DEVELOPMENT COUNCIL OP ?r: mr ,.,.tcnvr:r .; U.n vrtf 5m;: yRr Towncrest Medical Office Building — MDK /Hodge June 6, 2012 Page 2 Sale Price $4,600,000 Less 6% commission 276,000 = Net Sales Price $4,324,000 Less Bank payoff 3,680.000 = Sales Proceeds $644,000 Less Costs in excess of Sales Price 469.344 = Net Proceeds (taxes excluded) $174,656 If estimated construction interest, based on the bank's preliminary rate and the developer's proposed schedule, of approximately $95,000 is added to the expenses, the developer's requested developer fee of $198,969 is added to the proceeds, and the $656 difference between the developer's sources and uses is added back into the mix, the net proceeds total (rounded to the closest thousand) comes to $279,000. This would provide the developer with a profit on the $4.6 million sale price of approximately 6.1% or on total project costs of approximately 5.4%. Either method provides a measure of the developer's return that is reasonable. Conclusion: the project as presented demonstrates a need for gap financing in the requested amount of $950,000. if final project costs, bank terms, executed sales contracts or appraised values differ substantially from the numbers outlined above, NDC will update this review as requested by the City. NATIONAL DEVELOPMENT COUNCIL (I Prepared by: Eleanor M. Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240, RESOLUTION NO. RESOLUTION APPROVING AN AGREEMENT F PRIVATE REDEVELOPM T BY AND BETWEEN THE CIT/tteo" A CITY, IOWA, AND MDK DEVEL PMENT, L.L.C. WHEREAS, MDK Develop ent L.L.C. ( "Developer ") a "Proposal for the Redevelopment of 1020 Willia Street and 2611 Muscatine which proposal consists of a medical office building, (her 'nafter, "the Project "); and WHEREAS, this property is located ithin the Towncrest UFban Renewal Area, and subject to the Towncrest Urban Renewal Plan ( "Pla "), approved by Ci Council on December 7, 2010 (Resolution # 10 -509); and WHEREAS, the Economic DevelopmeNt Comm recommend approval to the City Council; knd , WHEREAS, City Staff has reviewed the a recommends approval to the City Council; a considered said application and voted to n and proposed Developer's Agreement and WHEREAS, in exchange for the grant unds, he property owner has agreed to requirements stipulating the future use of the prope and a mi imum assessment amount of $2,225,000; and WHEREAS, it is the determinatio of this City Co ncil that acceptance of the proposal of the Developer and approval of the reement for Privat Redevelopment is in the public interest of the residents of the City and is onsistent with the purp ses and objectives of the Plan. NOW, THEREF/incorporated RESOLVED BY THE CIT \the IL OF THE CITY OF IOWA CITY, IOWA, TH 1. That the eement for Private Redevel and between the City of Iowa City, IowK Development, L.L.C., a the Minimum Assessment Agreeme by reference therein, is lic interest of the resid ents of Iowa Citv 2. That Oid Agreement is consistent with and authorized by the Nrban Renewal Plan and all app ' able State and federal laws, including but not limited to owa Code Chapters 15A a 403; and 3. hat the Mayor is authorized and directed to execute the Agreeme in duplicate and the City Clerk is authorized and directed to attest his signature and to affi the seal of the City Clerk; 4. That the Mayor and City Clerk be and they are hereby authorized and dire ted to take all such actions and do all such things as they shall determine to be necessary o appropriate to ensure the City's performance as provided therein. Resolution No. Page 2 5. That the City Cler is hereby authorized to record the Memc Office of the Recor r, Johnson County, Iowa, at Developer's 6. That the City Manager i hereby authorized to administer the Private Redevelopment. Passed and approved this ATTEST: CITY CLERK of of Agreement in the of the Agreement for 2012. ApM;b . City Attorney's Office INTRODUCTION THIS AGREEMENT FOR PRIVATE REDEVELOPMENT is y and between the City of Iowa City, Iowa, a municipality ( "City "), established pursuant to th Code of Iowa of the State of Iowa and act' under the authorization of Iowa Code Chap r 15A and 403 (2011), as amended, ( "Urban enewal Act ") and MDK Development L.L (hereinafter referred to as "Redeveloper "), a li ited liability company organized under t laws of the State of Iowa and having an office for e transaction of business at 711 S. bert St., Iowa City, Iowa. This agreement outlines the s and conditions, and the relat' e rights and responsibilities of the City and the Redeveloper the redevelopment of the pr perty in downtown Iowa City known as 1020 Williams St. & 2611 uscatine Ave., an urban r ewal parcel. WITNESSETH: WHEREAS, in furtherance o the obj undertaken a program for the clearance Vd rec City and has undertaken an economic dev opr. ,es of the Urban Renewal Act, the City has ruction or rehabilitation of certain areas in the area in the City; and WHEREAS, on December 7, 2010 Iowa City City Council adopted Resolution No. 10 -509 approving the Towncrest Urban R ew Plan, (said plan is hereinafter referred to as the "Urban Renewal Plan" or "Plan"); AND WHEREAS, the Plan was ado ted for the urb renewal area ( "Project Area ") shown on Exhibit "A" and legally described on xhibit "B "; and WHEREAS, a copy of Oe Urban Renewal PI as constituted on the date of this Agreement has been recor7eymay ong the land records in th office of the Recorder of Johnson County, Iowa; and WHEREAS, such Renewal Plan permits the C to respond to development opportunities as and when appear; and WHEREAS, th Redeveloper submitted a private rede elopment proposal titled "Proposal for Redevel pment of 1020 Williams St. and 2611 Muscat e Ave. ", which proposal consists of a mix o commercial and medical office space, as sho on the Redeveloper's proposal, attached s Exhibit "C" (hereinafter, "the Project ") and the d scription of Minimum Improvements an Uses, attached as Exhibit "D ", on property legally d scribed on Exhibit E hereto (hereina r "the Property" or the "Redevelopment Property "; and Ren 7eers EAS, the City has determined the Project is consistent with an authorized by the Urban l Plan an d all applicable State and federal laws, including but no limited to Iowa Code Cha 15A and 403; and HEREAS, the Redeveloper is willing to develop or cause the Property to > \developed for an in accordance with the uses specified in the Urban Renewal Plan and in accor ance with K this Agreement by constructing the Project facility and incorporating the uses oydined in this Agreement and the Redeveloper's proposal. / NOW, THEREFORE, in consideration of the promises and the mutu obligations of the parties hereto, each of them does hereby covenant and agree with the other follows: PART Section 1. C The Redeveloper construction on 1020 Williams consist of a commercial st ture generally consistent with th Exhibit "C" as submitted by e Redeveloper on June 4, Exhibit D (Minimum Improve nts and Uses). The Re eN that includes a minimum total o 5,069,344 in acqu' itiol construction costs, inclusive of archit tural and envirglimen Sll & 2611 Muscatine Ave. will edevelopment proposal shown on 12, and as described more fully on -loper hereby commits to a Project [, demolition, site preparation, and E1 fees. Section 2. Representations andWarranties of Redeveloper. The Redeveloper makes the following representations and warrantie (a) The Redeveloper is a limite\'Iity mpany, duly organized under the law s of the State of Iowa, has power to enter i reement and to perform its obligations hereunder, and is not in violation of an of its articles of organization, operating agreement, any other agreement or the 1 s of Iowa. (b) The Redeveloper has Oe full power and a hority to execute this Agreement and this Agreement shall constitute th legal, valid and bin -I1 obligation of the Redeveloper in accordance with its terms, and th consent of no other part is required for the execution and delivery of this Agreement by the Redeveloper or the co summation of the transaction contemplated hereby. (c) The making d performance of this Agreement b the Redeveloper and the execution and delivery of e documents to be delivered by the Red veloper pursuant hereto, have been duly authorize by all necessary action of the Redeveloper, d this Agreement and such documents will b valid and binding obligations of the Redev oper enforceable in accordance with their t s. (d) The edeveloper will cause the Minimum Improvements to be constructed, operated and mai ained in accordance with the terms of this Agreement, the \mited Renewal Plan and all to 1, state and federal laws and regulations (including, but to, environmental, zoning, energy conservation, building code and public helaws and regulations), cept for minor variances necessary to construct the Minimum ovements contained in ny Construction Plans approved by the City. (ey The Redeveloper will use its best efforts to obtain, or cause to be obtai d, in a timely anner, all required permits, licenses and approvals, and will meet, in a timely anner, all req irements of all applicable local, state, and federal laws and regulations which m st be 4 obtained or met before the Minimum Improvements may be lawfully constructed. The Redeveloper's Architect will work with the City's staff Design RevieVeerior e on the final designs of the project. The Design Review Committee will ultimately isapprove the exterior design of the building. This agreement is contingent on the Re Architect and the City's staff Design Review Committee reaching agreement on tdesign of the building. If the final exter ior design substantially deviates from the lan shown in Exhibit C, it shall be subject to approval by Council. (f) The execution and delivery of this Agreement, the consummation of the transactions c templated hereby, and the fulfillment of or c pliance with the terms and conditions of this Agreement are not prevented by, limited b , in conflict with, or result in a breach of, the t rms, conditions or provisions of any c tractual restriction, evidence of indebtedness, agre ent or instrument of whatever nature o which the Redeveloper is now a party or by which it i bound, nor do they constitute a def It under any of the foregoing. (g) The Rede Loper will spend eno h in construction of the Minimum Improvements, when combi d with the value oft Property and related site improvements, to equal or exceed the Assessor's inimum ActXtua lue set forth in Section 6 of this Agreement. The Redeveloper estimates that t Assessor'mum Actual Value set forth in Section 6 of this Agreement is a reasonable estim e of the value for ad valorem tax purposes. (h) The Redeveloper has not official that the activities of the Redevf violation of any environmental law or r ved any notice from any local, state or federal with respect to the Property may or will be in (other than those notices, if any, of which the City has been notified). The Redeve per is no \violation ny State or federal claim filed or planned to be filed by any party elating to of any local, State or federal environmental law, regulation or r iew proced Redeveloper is not aware of any violation of any local, State or fed al law, regulaw procedure which would give any person a valid claim under any S to or federal enstatute. (i) The Redevel er shall proceed with due dil ence to obtain construction financing commitments/Em w ich commitments shall be sufficient t enable the Redeveloper to successfully te t e Minimum Improvements as contemp ted in this Agreement. Redeveloper ta' all financing commitments necessary for e construction of the Minimum Im is prior to the issuance of a building or foundation rmit but in no event later than onm the date of this Agreement, and provide a copy of s h commitments to the City by s. This agreement is contingent upon Redeveloper obtaini financing upon terms and c satisfactory to Redeveloper and City. In the event such ancing is not obtained by per within one year from the date of this Agreement, Rede loper or the City shall ha ht to terminate this agreement. 0 The Redeveloper will cooperate fully with the City and the owner of the p operty contig us to the subject Property in resolution of any traffic, parking, trash removal, blic safet or any other problems which may arise in connection with the construction and opera 'on of e Minimum Improvements. 6 � Section 3. Time for Commencement and Completion of Minimum Im ro ements. The construction of the Project and Minimum Improvements referred o in Section 1 hereof shall commence not later than five months from the date of this Agree ent, and shall be completed on or before December 31, 2013. Section 4. Time for Certain Actions. ( Progress Reports and Time for Submission of Constyfiction Plans. Redeveloper will keep he City informed regarding the status of the project by responding to inquiries from represent at ves of the City and furnishing progress reports as re sonably, requested, but not less than quarte during construction. Redeveloper agrees o provide to the City design development wings showing preliminary floor plans, el ations and related information no later than 60 cale ar days after the date of this Agreement No formal response will be required from the City to the design development drawings. T City, however, will alert Redeveloper of any known code v lations or other design issues at would. impact the acceptance of the Construction Plans. The 'me within which the Rede loper shall submit its initial "Construction Plans" (as defined in Secti 301 hereof) to the Ci in any event, pursuant to Article III hereof, shall be not later than 90 ca ndar days from t date of this Agreement. Within 30 calendar days of submittal, the City sh review and prove or reject and make recommendations for corrections to said Construction ans. The ity's review of said Construction Plans shall be based on the Urban Renewal Plan, a appli able codes and any additional requirements imposed on the Redeveloper under this Agreem t (b) Time for Submission f C ected Construction Plans. Except as provided in Paragraph (c) of this Sectio/theedeveloper e with\receies Redeveloper shall submit any new or corrected Construction Planded fo 301 shall be not later than thirty (30) calendar days after the date itten notice from the City of the City's rejection and recommendatirrectionstruction Plans referred to in the la test such notice. (c) Maxim Time for Approved Construction Nans. In any event, the time within which the Redevelope s t c hall submit Construction Plans whionform to the requirements of Section 301 hereof 4 dare approved by the City shall be not late than thirty (3 0) calendar days after the date the developer receives written notice from the Cit of the City's first rejection and recommenda ons for corrections to the original Construction P s submitted to it by the Redeveloper. (d) Time for City Action on Change in Construction Plans. The ti e within which the City may ject any change in the Construction Plans, as provided in Section 3 hereof, shall be thirty (3 calendar days after the date of the City's receipt of notice of such chan . (e) Time for Submission of Evidence of Financing Ability. Prior to the i uance of a b ' ding or foundation permit, but in no event later than five months from the da of this greement, the Redeveloper shall submit to the City evidence satisfactory to the City at the edeveloper has the financial ability and commitments for construction and mortgage fin cing necessary for construction of the Minimum Improvements, as provided in Section 301 hereo . 6 Section 5. Minimum Assessment Agreement. The Redeveloper acknowledges and agrees that the grant to the Redeveloper pr ided for in Section 101 of this Agreement contemplates that the property tax revenues gener d from the Project legally described in Exhibit E, attached hereto, will be sufficient to repay t 20 year loan from the General Fund cash balance (herein after "General Fund loan ") refe d to in Section 141 of this Agreement. In order to induce the City to make such grant, Re veloper agrees to enter into a Minimum Assessment Agreement in a form in substantial comp ance with Exhibit F attached hereto, n order to establish a Minimum Actual Value for t land and Minimum Improvements fokthis Project. The Redeye per acknowledges and agrees that it, or the ers of condominium units sold, will pay when ue all taxes and assessments, general or, special, and all other charges whatsoever levied upon r assessed or placed against the Prop rty and further agrees that, prior to the final maturity date all bonds, notes, loans or other ligations issued or undertaken by the City to finance its costs o he Project: (a) neither it nor the ers of condomin' m units sold will seek administrative or judicial review of the applicability any tax statut determined by any official to be applicable to the Property or the Redeveloper, or the ow rs of condominium units sold, or raise the inapplicability of any such tax statute a a defe se in any proceedings, including delinquent tax proceedings; (b) neither it nor the owners c dominium units sold will seek administrative or judicial review of the constitutionalit of an tax statute determined by any official to be applicable to the Property or the Red eloper or t owners of condominium units sold, or raise the unconstitutionality of any suc tax statute a a defense in any proceedings, including delinquent tax proceedings; (c) it /rede a reduction in the taxab valuation upon which real property taxes are paid wi the Project, which consists a commercial structure generally consistent with tpment proposal shown on E ibit "C" as submitted by the Redeveloper (and cifically outlined in Exhibit D Mi ' um Improvements and Uses), below the amount 00 after taking into consideration factors such as "roll- backs" which would redule value of the property as of January 2014. ( "Minimum Actual Value ") through: willful destruction of the Property or any part thereo (ii) a request to the City Assessor of Iowa City, Iowa to red e the Minimum Value of the Property below the amount noted above; \ (iii) an appeal to the Board of Review of the City of Iowa City or t the Board of Review of Johnson County to reduce the Minimum Actual Value of thT perty below the amount noted above; 7 (iv) a petition to the Board of Review of the State of Iowa or to the Director of Revenue and Finance of the State of Iowa to reduce the Minimum Actual Value of the Property below the amount noted above; (v) an action in any District Court of the State of Iowa se ing a reduction in the Minimum Actual Value of the Property below t/andF oted ove; (vi) an application to the Director of Rev nce of the State of Iowa request g an abatement of real property taxes purspresent or future statute or ordinance, (vii) y other proc eedings, whether admgal or equitable, with any administrative bo within the City of Iowa City, Jty, or the State of Iowa or within any court of e State of Iowa or the federal . The Redeveloper or o eXanat condominium its sold shall not, prior to the final maturity date of the bonds, notes, r other obli ions issued or undertaken by the City to finance its costs of Contribution Project, outlined in Section 101 hereof, cause or voluntarily permit the Property to me oth than taxable property (except as permitted herein); to be taxable at an amouthan e Minimum Actual Value noted above; to be owned by a utility or any other ent a where the assessed value of taxable property of such entity is not treated as locatein Project Area in its entirety; to be owned by any entity having t ax exempt status; or r a eferral of property tax on the Property pursuant to any present or future statute or oce. No ing contained herein is intended to, and shall not be construed to, in any way edevelop is right to sell condominium units in the Project at any time subject to ths of this greement and the applicable Minimum Assessment Agreement. The Redeveloper agree that it and its success s in interest, including owners of condominium units soldVenholders is b nd by the applicable Minim Assessment Agreements attached as Exhibit F fixing the Mum Actual Value of the Propert s approved by the Assessor and the City as set forth heree Redeveloper shall provide to the City a title opinion showing all lienholders, and all such shall consent to the Minimum ssessment Agreements. The Redevelo er recognizes that the grant to the Redeveloper ursuant to the Agreement is conditional upon ufficient property taxes being generated by this Pr erty to repay the costs of the bonds, not s, loans or other obligations issued or undertaken by e City to make such grant. The City will need property taxes from the Property in the amount and at the times set forth /aax e Y to the applicable Minimum Assessment Agreement. I or any reason the propre less than the amount set forth on Schedule Y for any fiscal ear, the assessor shall e assessed value of the Project for the next fiscal year in an amou t to cover such propciency. If, for any reason, the assessor does not so in crease the a essed value, Redeall make a payment to the City in the amount of the difference etween the prop enue and the cost of the bonds, notes, loans or other obligations. The Redeveloper contemplates that the Project will consist of three condominiu units. Redeveloper agrees that at the time of the execution of the declaration required by C pter 8 499B Horizontal Property (Condominiums) of the Code of Iowa 2011, an attachment /(o the declaration will be executed by the Redeveloper, the City and the City Assessor all Gating a portion of the Minimum Actual Value to each unit. The Minimum Actual Values herein established shall be of no further rce and effect and the Minimum Assessment Agreements shall terminate on April 1, 20 when the final installment on the General Fund loan is made, or when the loan is paid ' fu11, whichever is earlier. The imum Assessment Agreements shall be certified by t Assessor for the City as provided in Iow Code Section 403.6(19) and shall be filed for ecord in the office of the Johnson County \ecorder, and such filing shall constitute notice to any subsequent encumbrancer or f the Property (or part thereof), w ther voluntary or involuntary, and such Minimuent Agreement shall be bindin and enforceable in its entirety against any such purchaser or encumbrancer, cluding the holder of any First Mortgage. If, for any reason, the Xlinimurn Asses mmen Agreement is held to be invalid or unenforceable for any reason whet r in whole or in and the property tax revenue generated by the Project is insufficient to pay he loan pay nts as they become due, the Redeveloper agrees to make a contractual payment the City in the amount of the difference between the amount of the property tax revenue and th amo t of the loan payment. Section 6. Notices and De/ered A notice, demand or other ctio under this Agreement by either party to the other shall be sufficiently given or dif it i dispatched by registered or certified mail, postage prepaid, return receipt reques livered rsonally, and (a) In the case /f the Redeveloper, is addressed or delivered personally to the Redeveloper at 711 S. G' ert St., Iowa City, Iowa 51-'N.0, Attn: Mike Hodge and (b) In the ase of the City, is addressed to or klivered personally to the City Manager at City HA 11, 410 E. Washington St, Iowa City, I a, 52240, or at such other address with res ect to either party as that party may from ime to time designate in writing and fo and to the other as provided in this Section. Section 7. Counterparts. The Agre ent may be executed in multiple counterparts, each of wh'ch shall constitute o/nnection instrument. PART II ARTICLE I. CITY CONTRIBUTIONS TO PROJECT 1. Contributions by City. The City agrees to the following contrib ions in c he Project: 9 (a) The City agrees to make a loan from its General Fund balance with a 20 year repayment schedule and an annual interest rate of 3.25% to fu d a construction grant to the Redeveloper and to finance the Project as outline below provided, however, that the City may, in its sole discretion, fund such rant in whole or in part through any other means available to the City. In n event shall the City make such loan until Redeveloper has satisfied the finan 'al commitments stated in Article IIl, Section 303. (b) The Cit will make a construction grant for the use b e the Redeveloper. Based on a final tot roject cost of $5, 069,344 the grants 11 be $625,000. In the event the total pro t cost is less than said amount b 10% or more the final grant payments shall reduced on a pro -rata basis. e grant funds shall be released to the Redeveloper a pro rata basis with th proceeds of the construction loan for progress payment to the contractor b ed on Applications for Payment submitted to the Archit t by the Contra for at such time as Certificates of Payment are issued by the chitect and i the amounts so certified. In the event that the total project cost is le than the stimated final total project cost by 10% or more City will adjust th final progress payments accordingly and /or Redeveloper will repay to City an ov Maid amounts. (c) The City shall make a forgi Redeveloper's acquisition of 1 the City's Gap Financing for' of $300,000 to Redeveloper upon the ns St. and 2611 Muscatine Ave. through 'atalyst Projects. Redeveloper will give the City a mortgage on sai properties to ecure its obligation to construct the Project, which mortgage ill be released pon issuance of a Certificate of Occupancy and sale or le e of all three condo iniums. In the event construction is not complete within t e time provided in Section 3 of Part I of this Agreement Redeveloper will refu said $300,000 to City. (d) The City shall Inpenses y the Redeveloper a match Ng grant of $25,000 for predevelopment such as architectural, engi Bering and environmental assessment. Bas d on cost documentation and invoices, the City will pay 50% of each eligible i oice to the Redeveloper until the City h paid the Redeveloper $25,000. ART CLE II. RIGHTS OF ACCESS TO PROPERTY Section 201. ight of Entry for Utility Service. The City reserves for itse , and any public utility comp y, as may be appropriate, the unqualified right to enter upon the roperty at all reasonable tim for the purpose of reconstructing, maintaining, repairing, or servic g the following public tilities located within the Property boundary lines: a. stopm sewer; b. /eater; and 10 c. electricity. The City shall, within 60 days after the date this agreement is sigq4d, provide Redeveloper with the location and description of all such utilities. If the locatio of any utility prevents, or makes impracticable, the placement of the contemplated buildi on the lot, the Redeveloper maAterminate this agreement. Section 20 Redeveloper Not To Construct Over Utility Ease ents. The Redeveloper shall not construct y building or other structure or improveme on, over, or within the boundary lines of any Bement for public utilities unless such co struction is provided for in such easement or has bee approved by the City. If approval fo such construction is requested by the Redeveloper, the Ci shall use its best efforts to assur that such approval shall not be withheld unreasonably. If re cation of such utilities is re onable, Redeveloper shall pay all costs of such relocation. Section 203. Access to P a ert . The ev Red oper shall permit the representatives of the City access to the Property at ll r asonable time which it deems necessary for the purposes of this Agreement including, but not imited to inspection of all work being performed in connection with the construction of thek4inim in Improvements. No compensation shall be payable nor shall any charge be made in an by any party for the access provided for in this Section. ARTICLE III. CONSTRTIONVLANS; CONSTRUCTION OF IMPROVEMENTS;/CERTIFICATE OF COMPLETION Section 301. Plans for Cgfistruction of lm pro ments. Plans and specifications with respect to the redevelopment of the Property and the onstruction of certain improvements thereon, to consist of a co ercial structure generally onsistent with the redevelopment proposal shown on Exhibit C" as submitted by the Rede eloper on June 4, 2012, and the "Minimum Improvements" shown on Exhibit D and as oud ed in Section 1, Part I above, (hereinafter "Minimum provements "), shall be in conformity with the Urban Renewal Plan and this Agreement, d all applicable Federal, State and loc laws and regulations. As promptly as possible fter the date of this Agreement, and, in any a ent, no later than the time specified therefore ' Paragraph (a), Section 4 of Part I hereof, the R eveloper shall submit to the City, for app r val by the City Departments of Planning, Public orks and Housing and Inspection Servi es, or their designee(s), plans, drawings, specifications, a d related documents, and the propo d construction schedule in sufficient completeness and deta *1 to show that such "Minimum I provements" and construction thereof will be in accordance wit the provisions of the Urban enewal Plan, this Agreement, and all applicable codes. Said lans, drawings, specifcat' ns, related documents, and progress schedule, together with any a d all changes therein pproved in writing by the City in accordance with Section 302 hereof, re, except as other se clearly indicated by the context, are collectively defined as "Construction Plans" with resp ct to the "Minimum Improvements" to be constructed. The City shall, if the C nstruction PI s conform to the provisions of the Urban Renewal Plan, this Agreement, and all plicable des, approve in writing such Construction Plans and no further filing by the Redeve per or approval by the City thereof shall be required except with respect to any material chang The City will then, upon appropriate showing of compliance with the requirements of the previous sentence, issue the appropriate building permit(s). Failure by the City to identify a code deficiency during plan review does not, however, relieve the Redeveloper from any obligation to comply with all applicable code pr visions. Such Construction Plans shall, in any event, be deemed approved unless rejection ther f in writing by the City, in whol or in part, setting forth in detail the reasons therefore, shall b made within the time specified in 1, Section 4hereto. If the City so rejects the Construc on Plans in whole or in part as not b 'ng in conformity with the Urban Renewal Plan, t is Agreement, or all applicable codes, the developer shall submit new or corrected Constru ion Plans which are in conformity with the Ur b Renewal Plan, this Agreement, and all ap icable codes within the time specified in Paragraph ), Section 4hereof, after written notific tion to the Redeveloper of the rejection. The provisions of this Se tion relating to approval, ejection, and resubmission of corrected Construction Plans herein ove provided with res ct to the Construction Plans shall continue to apply until the Constructio lans have been ap oved by the City: Provided, that in any event the Redeveloper shall submit onstruction PI s which are in conformity with the requirements of the Urban Renewal Plan for e Project, is Agreement and all applicable codes, as determined by the City, no later than the ti specif d therefore in Paragraph c, Section 4 of Part I hereof. All work with respect to the " ini um Improvements" to be constructed or provided by the Redeveloper on the Property shall e in conformity with the Construction Plans as approved by the City. The term "Minimum I pr uements ", as used in this Agreement, shall be deemed to have reference to the "Minimum mpro ments" as provided and specified in the Construction Plans as so approved and incorp ated herei by Exhibit D. Approval of the Construction Plan y the City shall t relieve any obligation to comply with the terms and provisions of this Ag ement, or the provisi of applicable federal, State and local laws, ordinances and regulations nor shall approval of the Construction Plans by the City be deemed to constitute a waiver any Event of Default. Ap roval of Construction Plans hereunder is solely for purposes o this Agreement, and shall not onstitute approval for any other City purpose nor subject e City to any liability for the imum Improvements as constructed." Section 302. Chan2 in Construction Plans. If the Redeveloper esires to make any substantial change in the onstruction Plans after their approval by the Ci , the Redeveloper shall submit the propos modified by the prop change to the City for its approval. If the Con ction Plans, as ed change, conform to the requirements of Section 1 hereof with respect to such prev' usly approved Construction Plans, the City shall approu the proposed change and notify e Redeveloper in writing of its approval. Such change in the onstruction Plans shall, in an event, be deemed approved by the City unless rejection thereof, in hole or in part, by written otice thereof by the City to the Redeveloper, setting forth in detail th reasons therefore, sha be made within the period specified therefore in Paragraph d, Section 4 o Part I hereof. $ ction 303. Evidence of Equity Capital and Mortgage Financing. As promptly N possibX and, in any event, no later than the time specified therefore in Paragraph i, Section 2 o 12 Part I hereof, the Redeveloper shall submit to the City evidence satisfactory to the City that the Redeveloper has the financial ability to construct the "Minimum Improvements ". Section 304. Commencement and Completion of Construction of `Minimum Improvements ". The Redeveloper agrees for itself, its successors and assiVerconveyance and every successor in interest to the Property, or any part thereof, and each Deed or o shall contain cov ants on the part of the Redeveloper for itself and such suc ssors and assigns, that the Red eve l er, and such successors and assigns, shall promptly egin and diligently prosecute to comp etion the redevelopment of the Property through e construction of the "Minimum Improve nts" thereon, and that such construction shall ' any event begin within the period specified in tion 3 of Part I hereof and be completed w' hin the period specified in such Section 3. It is inten d and agreed, and each Deed or other nveyance of the Property or any portion thereof shall expressly provide, that the nstruction of the Minimum Improvements shall be covenant running with the la/ity shall, in any event, and without regard to technical classification o designation, legal e, and except only as otherwise specifically provided in this Agree ent itself, be, tt extent permitted by law and equity, binding for the benefit of the co munity and t enforceable by the City against the Redev eloper and its successors and signs to or erty or any part thereof or any interest therein. Section 305. Notice of Delays. Until c truction of the "Minimum Improvements" has been completed, the Redeveloper shall give pro t notice in writing to the City of any adverse development which would materially affect o dela the completion of such construction. Upon such notification and subject to agreement y the ty the completion date will be extended accordingly. Section 306. (a) Promptly after comyletion of the "Minimum I provements" in accordance with those provisions f this Agreement relating s lely to the obligations of the Redeveloper to onstruct the "Minimum Improve ents" (including the dates for beginning and ompletion thereof), the City will .sh the Redeveloper with an appropriate ' strument so certifying. Such certificat' n by the City shall be a conclusive etermination of satisfaction and terminati of the agreements and covenant in this Agreement and in the Deed with respect the obligations of the Redev oper, and its successors and assigns, to cons ct the "Minimum Impr ements" and the dates for the beginning and compl ion thereof. Such ce ' ication and such determination shall not constitute evide e of compliance w' h or satisfaction of any obligation of the Redeveloper to y holder of a ortgage, or any insurer of a mortgage, securing money loaned o finance the "Minimum Improvements ", or any part thereof. The certification provided for in this Section 306 shall be in such fo as will enable it to be recorded in the proper office for the recordation of deeds a d other instruments pertaining to the Property. If the City shall refuse or fail to kovide any certification in accordance with the provisions of this Section, the City Xhall, within thirty (30) calendar days after written request by the Redeveloper, pro ide 13 the Redeveloper with a written statement indicating in adequate detail in what respects the Redeveloper has failed to complete the "Minimum Improvements" in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for the Redeveloper to take or perform in order to obtain such certifcatio . ARTICLE IV. RESTRICTIONS UPON USE OF PRO Section 401. Res fictions on Use. The Redeveloper agrees for 'tself, its successors and assigns, that each deed o other conveyance shall contain cove on the part of the Redeveloper for itself, such uccessors and assigns, that the Rede eloper and such successors and assigns, shall: (a) Use its best efforts devote the Property o to and in accordance with, the uses specified in the an Renewal Plan an the uses specified in Section 1, Part I of the Agreement, incl ing Exhibits "C" nd "D "; and (b) Not discriminate upon the asis of e, race, creed, color, disability, gender identity, marital status, sex, s X ientation, religion, national origin, familial status, or the presence or abdependents or public assistance source of income in the sale, lease, or rin the use or occupancy of the Property or any "Minimum Improvemened or to be erected thereon, or any part thereof. Section 402. Covenants; Bindin U on Succes ors in Interest• Period of Duration. It is intended and agreed, and each deed other conveyan e shall so expressly provide, that the agreements and covenants provided ' Section 401 hereo shall be covenants running with the land and that they shall, in any event, and without re and to technical classification or designation, legal or otherwise, nd except only as other se specifically provided in this Agreement, be binding, to the llest extent permitted by law d equity, for the benefit and in favor of, and enforceable by, e City, its successors and assigns, nd any successor in interest to the Property, or any part t reof, against the Redeveloper, its su \Rene rs and assigns, and any party in possession or occ pancy of the Property or any part ther is further intended and agreed that the agreem is and covenants provided in subdivisiand (b) of Section 401 hereof shall remain in ffect until April 1, 2035. Provided, that sreements and covenants shall be binding on e Redeveloper itself, each successor in intee Property, and every part thereof, and e ch party in possession or occupancy, respecto for such period as such successor o party shall have title to, or an interest in, or pon r occupancy of the Property or an part thereof. The terms "uses specified in the Uene 1 Plan" and "land use" referrin to the provisions of the Ur ban Renewal Plan, ilar nguage, in this Agreement all include the land and all building, housing, and otiremen or restrictions of the Ur n Renewal Plan pertaining to such land. /Section 403. City Rights To Enforce. In amplification, and not in restric 'on, of the sions of the preceding Section, it is intended and agreed that the City and its succ ssors and 7s shall be deemed beneficiaries of the agreements and covenants provided in Se tion 401 re st f, both for and in its own right and also for the purposes of protecting the inte of the 14 community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements /ent venants shall ( d each Deed shall so state) run in favor of the City, until April 1, 20uring which 'me such agreements and covenants shall be in force and effect, without regwhether th ity has at any time been, remains, or is an owner of any land or interest thereir in favor f which such agreements and covenants relate. The City shall have the right in tnt of a breach of any such agreement or covenant to exercise all the rights and remedieto m ntam any actions or suits at law or in equity or other proper proceedings to enforce ri g of such breach of agreement or co nant, to which it or any other beneficiaries of suc ent or covenant may be entitled, and sh 11 be entitled to recove r, in addition to its court a reasonable attorney's fee to be fixed by t court, and such recovery shall include court and attorney's fees on appeal, if any. ARTICLE V. PROWBITIONS AGAINST ASSIGNMENT, TRANSFER Section 501. Re resenta 'on as to Redevelo me . The Redeveloper represents and agrees that its undertakings pursu to this Agreement 9de and will be used for the purpose of redevelopment of the Property and n for speculation i land holding. The Redeveloper further recognizes: (a) the importance of the redeve pme of the Property to the general welfare of the community; (b) the substantial financing and ther ublic aids that have been made available by law and by the City for the rpose o aking such redevelopment possible; and (c) the fact that any act or tr nsaction involve g or resulting in a significant change in the ownership or wit respect to the ide tity of the parties in control of the Redeveloper or the degree thereof, is fl- practical purposes a transfer or disposition of th Property then owned b the Redeveloper, and that the qualifications an identity of the Redeveloper re of particular concern to the community an the City. The Redeveloper reco izes that it is because of such qualifications and identity that the City is entering ' to this Agreement with the Section 502. P ohibition Against Transfer of Property and As ' nment of Agreement. For the foregoing re a ns the Redeveloper represents and agrees for itself, nd its successors and assigns, that: (a) t e Redeveloper has not made or created, and that it will not, bef e completion of the Minimum Improvements and receipt of a Certificate of Com et ion pursuant to Section 306, make or create, or suffer to be made or created, any tat or partial sale, assignment, conveyance, or lease, or any trust or power, or tra sfer in any other mode or form of or with respect to this Agreement or the Prop y, or any part thereof or any interest therein, or any contract or agreement to do y of the same, without the prior written approval of the City. ILI (b) Notwithstanding the restrictions set forth in subparagraph (a) of this Section 502, the Redeveloper may: 1. make such transfer or assignment only by way of security only fo3r4he purpose of obtaining financing necessary to enable the Redeveloper or d successor in interest to the Property, or any part thereof, to perform its bligations with respect to constructing the "Minimum Improvemen/ojj this Agreement; 2. se or lease commercial condominium units in the., any time subject to the rms of the Minimum Assessment Aareeme (c) The City shal be entitled to req/dedn pt f such transfers, assignments, leases, conveyan s or sales provi s section (b) of Section 502, as conditions to any s h approval tha 1. Any proposed ansferee e the qualifications and financial responsibility, as t ermineity, necessary and adequate to fulfill the obligations and aken reement by the Redeveloper (or, in the event the transfe is tes to part of the Property, such obligations that relate to uc 2. Any proposed transferee 'hl expressly assume, by instrument in writing satisfactory to the City nd in rm recordable among the land records, for itself, its successors d assigns, and expressly for the benefit of the City, all of the obligatio of the Rede eloper under this Agreement and agree to be subject t all the condi ions and restrictions to which the Redeveloper is bject (or, in the ev t the transfer is of or relates to part of the Propert , such obligations, con ions, and restrictions that relate to such part), rovided that in the even any transferee or successor in interest to e Property, or any part thereo does not, for whatever reason, expressly assume or agree to such obligatio s, conditions and restrictions, such 1 k of assumption or agreement shal not relieve or except such trans ree or successor of such obligations, con itions, or restrictions; nor sha it deprive or limit the City of any rights, r edies or controls with r pect to the Property or the constructio of the "Minimum mprovements" unless and only to the extent o erwise specifically provided in this Agreement or agreed to in writing by t e City. It being the intent that, to the fullest extent permitted by law and eq 'ty and excepting only in the manner and to the extent specifically provided therwise in this Agreement, no transfer of or change of ownership in the Pro erty, any part thereof, or any interest therein, however consummated or o urring, and whether voluntary or involuntary, shall operate, legally or pr tically, to deprive or limit the City of or with respect to any rights, re edies or controls provided in or resulting from this Agreement that the Cit would have had, had there been no such transfer or change. 16 3. There shall be submitted to the City for review all instruments and other legal documents involved in effecting transfer; and if approved by the City, its approval shall be indicated to the Redeveloper in writing. 4. The consideration payable for the transfer by the tra feree or on its behalf shall not exceed an amount representing the actual ost (including carrying %anyto the Redeveloper of the Property r allocable to the part or interest therein transferred) and the ` inimum Improvements ", heretofore made thereon by it; it bei g the intent of this provision ude assignment of this Agreement r transfer of the Property (or s thereof) for profit prior to t completion of the "Minimum 5. The Redev per and its transfere or successor shall comply with such other condit o y1mproments', ty may find desirable in order to achieve and safeguard the pthe U an Renewal Act and the Urban Renewal Plan. Provided, That in the absence written agreement by the City to the contrary, no such transfer or approval by the hall be deemed to relieve the Redeveloper, or any other party bound in any way by e t or otherwise, of its obligations with respect to the construction of the "Minimum nts' , or from any of its other obligations under this A greement. Section 503. Informatior. of the purposes of this Article V that during the period between e: Improvements" as certified by the all changes whatsoever with resp the degree thereof, of which it r have knowledge or informati n. Section 504. as to /Parties in Control. In order to assist in the effectuation and e statutory objectiv generally, the Redeveloper agrees ce tion of this Agreement d completion of the "Minimum ity, the Redeveloper will pr mptly notify the City of any and ct to the identity of the parties i control of the Redeveloper or, any of its officers or members h ve been notified or otherwise I� Assets.? As security f r the obligations of the Redeveloper under this Agreem t, the Redeveloper represents and agr s that prior to April 1, 2035, the Redeveloper will in nt- its existence as a limited liability mpany and will not wind up or otherwise dispose of all or s stantially all of /the ts or sign its interest in this Agreement to any other party; pro ided that the oper ay sell or otherwise transfer to a partnership, corporation or li *ted liability o ganized under the laws of one of the United States, or an indivi ual, all or i y all of its assets as an entirety or assign its interest in this Agreement to ny other thereafter wind up and be discharged from liability hereunder if (i) the t nsferee hip, corporation, limited liability company or individual assumes in writing al of the ns of the Redeveloper under this Agreement and the Minimum Assessment Agree en he City receives such new security from the successor Redeveloper to assure compl ion ration of the "Minimum Improvements" during the term of this Agreement as the ty deems necessary or desirable and receives such evidence as the City shall reasonab y require, including an opinion of counsel, that the existing performance and payment b/Reveloper d security provided pursuant to this Agreement will remain in effect and will be enforagainst the existing Redeveloper and issuer of such bonds upon a default by the successor with respect to completion or operation of the "Minimum Improvements ". ARTICLE VI. MORTGAGE FINANCING; RIGHTS OF MORTGAGEES Section 601. Limitation Upon Encumbrance of Property. Prio to the completion of the "Minimum Improve is ", as certified by the City, neither the Rede Loper nor any successor in interest to the Property or y part thereof shall engage in any Tina cing or any other transaction creating any mortgage, encu rance or lien upon the Property, ether by express agreement or operation of law, or suffer any ncumbrance or lien to be de on or attach to the Property, except for the purposes of obta' ing funds only to the extent necessary for making the "Minimum Improvements ", includin but not limited to ngineering, development, legal and related Project costs (including costs o interior improv ments, furnishings and fixtures. The Redeveloper (or successor in interest) sha notify the ity in advance of any financing, secured by mortgage or other similar lien instrum t, it oposes to enter into with respect to the Property, or any part thereof, and in any e n it shall promptly notify the City of any encumbrance or lien that has been created on or ached to the Property, whether by voluntary act of the Redeveloper or otherwise. Nothing rein is intended to, and should not be construed to, in any way limit Redeveloper from sellin condo 'nium units in the Project at any time or limit purchasers from placing mortgages o the condom' ium units subject to the terms of this Agreement and the Minimum Assessment greement. Section 602. Mortgage Holder/Not Obligated To Con ruct. Notwithstanding any of the provisions of this Agreement, the older of any mortgage uthorized by this Agreement (including any such holder who o ains title to the Property or y part thereof as a result of foreclosure proceedings, or actio in lieu thereof, but not includi (a) any other party who thereafter obtains title to the Pr erty or such part from or through s h holder or (b) any other purchaser at foreclosure sale o er than the holder of the mortgage itsel )shall not be obligated by the provisions of this Ag ement to construct or complete the "Mini um Improvements" or to guarantee such construc on or completion; nor shall any covenant or y other provision in the Deed be construed to so obligate such holder Provided, That nothing in this Section or any other Section or provisi n of this Agreement shall be deemed or construed to ermit or authorize any such holder to vote the Property or any part thereof to any uses, or o construct any "Minimum Improv ments" thereon, other than those uses or improvements provided or permitted in the U an Renewal Plan and in this Agreement. \ Sectio 03. Copy of Notice of Default to Mortgagee. Whenever the City s all deliver any no/ement demand to the Redeveloper with respect to any breach or defa t by the Redeve its obligations or covenants under this Agreement, the City shall at the s e time forwary of such notice or demand to each known holder of any mortgage autho ' ed by this Ag at the last address of such holder shown in the records of the City. Section 604. Mortgagee's Option To Cure Defaults. After any breach or default Section 603 hereof, each such holder shall (insofar as the rights of the City are coi 18 have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Property covered by its mortgage) and to add the cost thereof to the mortgage debt and the lien of its mortgage Provided, That if the breach or default is with respect to construction of the "Minimum Improvements ", nothing co tained in this Section or any other Section of this Agreement shall be deemed to permit authorize such holder, either before or after foreclosure or action in lieu thereof, to undert e or continue the construction or completion of the "Minimum Improvements" (beyond th extent necessary to conserve or protect "Minimum Improvements" or construction alrea made) without first having expressl assumed the obligation to the City, by written agre ent satisfactory to the City, to complet in the manner provided in this Agreement, the " imum Improvements" on the Property or th art thereof to which the lien or title of such ho er relates. Any such holder who shall properly c plete the "Minimum Improvements" relati g to the in or applicable part thereof shall be titled, upon written request made to the City, to a certification or certifications by the City t uch effect in the manner provide n Section 306 of this Agreement. Section 605. City's Opt-tQn To Pay Mortgage DeV or Purchase Property. Subsequent to default or breach of this AgreemeX by the Redevelop))4 or successor in interest, in any case where the holder of any mortgage on t Property or paA thereof: (a) has, but does not exercise, e opt' n to construct or complete the "Minimum Improvements" to the Prope o part thereof covered by its mortgage or to which it has obtained title, and ch failure continues for a period of sixty (60) days after the holder has been n tiff or informed of the default or breach; or (b) exercises the option to uch ruct or co lete does not complete such " inimum Impro m by the City and such hol er (which period s the period prescribed r such completion in shall not have been red within sixty (60) da so to do, the City shall: the "Minimum Improvements" but -nts" within the period agreed upon 11 in any event be at least as long as his Agreement), and such default as fter written demand by the City (a) have the opt' n to pay to the holder the amount of the mortNge debt and securing an assig nt of the mortgage and the debt secured thereby_; (b) in the ent ownership of the Property (or part thereof) has veste in such holder Vybe) of foreclosure or action in lieu thereof, the City shall be ntitled, at its to receive conveyance of title to the Property or part thereo (as the case upon payment to such holder of an amount equal to the sum to 1 of- (i) the mortgage debt at the time of foreclosure or action in lieu thereo less all appropriate credits, including those resulting from collection and appl ation of rentals and other income received during foreclosure proceedings); (ii) all expenses with respect to the foreclosure; 19 (iii) the net expense, if any (exclusive of general overhead), incurred by such holder in and as a direct result of the subsequent management of the Property; (iv) the costs of any "Minimum Improvements" made by such holder; and (v) an amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts becomye part of the mortgage debt and such debt had continued in existence. / Every mortgage instrument made prior to completion of the "Minimu provements" with respect to the Property or any part thereof shall so provide. Section 606. Cit O tion To Cure Mortgayze /en In th event the Redeveloper, or any successor in interest efaults or breaches its oblind , and to the holder of, any mortgage or other instrume creating an encumbrance u n the Property or part thereof prior to the completion of th "Minimum Improvementity may, at its option, cure such default or breach, in which ase the City shall bd, to reimbursement from the Redeveloper or successor in int est of all costs and s incurred by the City including reasonable attorney's fees in curing uch default or breao a lien upon the Property (or the part thereof to which the mortgage, ncumbrance, or tes) for such reimbursement, in addition to and without limitation upon y other righ or remedies to which it shall be entitled by this Agreement, operation of law, or o erwise: P ovided, That any such lien shall be subject always to the lien of (and any lien contem ated , because of advances yet to be made,) any then - existing mortgages on the Property autho 'z by this Agreement. Section 607. Mortgage and Holder. Fo the purposes of this Agreement: The term "mortgage" shall include a deed of trust or other 1 strument creating an encumbrance or lien upon the Property, or any part thereof, as s curity for oan. The term "holder" in reference to a mortgage shall include a deed of trust. Section 608. Subordination anAModification for the',13enefit (a) In order to facilitate taining financing for the nstruction of the "Minimum Improvements" by the Redeve per, the City agrees to sub dinate its rights under this Agreement to the holder of th First Mortgage for the purposes d cribed in Section 601(a) of this Agreement, but only provided that the First Mortgage or a subor ' ation agreement provides that if the holder of the F' st Mortgage shall foreclose on the Red velopment Property, the improvements thereon, or ny portion thereof, or accept a deed to the Re velopment Property in lieu of foreclosure, it s all consent to the Assessor's Minimum Actual alue set forth in the Minimum Assessme Agreement and all the provisions of the Mi ' um Assessment Agreement. (b) In o er to facilitate obtaining financing for the construction of the "Minimum Improvements ", the City agrees that it shall agree to any reasonable modification of this Article VI or waive of its rights hereunder to accommodate the interests of the holder of the First Mortgage, rovided, however, that the City determines, in its reasonable judgment, that any such modifica 'on(s) will adequately protect the legitimate interests and security of the City with respect o the Project and the Urban Renewal Plan. The City also agrees to consider such modification(s) of this Article VI with respect to other holders, and to agree to such modifications if the City deems such modification(s) necessary and reasonable. ARTICLE VII. REMEDIES Section 7 . In General. Except as otherwise provided in this greement, in the event of any default or bre ch of this Agreement, or any of its terms or cond' ions, by either party herein, or any successor t such party, such party (or successor) shall, pon written notice from the other, proceed imme iately to commence to cure or remedy s ch default or breach and shall complete such cure or emedy within ninety (90) days after r eipt of such notice. In case such action is not taken or d igently pursued, or the default or each cannot be cured or remedied within a reasonable tim the aggrieved party may in tute such proceedings as may be necessary or desirable in it opinion to cure and remedy s h default or breach, including, but not limited to, proceedings to c pel specific performanc y the party in default or breach of its obligations. Section 702. Other RiAs and Remedies jKf Cit • No Waiver by Delay. The City shall have the right to institute such a tions or pro edings as may be necessary to enforce the Redeveloper's covenants and obligati ns under is Agreement and to seek damages caused by a breach or default by the Redeveloper. he Ci may also institute such actions or proceedings it may deem desirable for effectuating the ses of this Article VII, provided that any delay by the City in instituting or prosecuting an y ch actions or proceedings or otherwise asserting its rights under this Article VII shall not op t as a waiver of such rights or to deprive it of or limit such rights in any way (it being the inte of this provision that the City should not be constrained (so as to avoid the risk of eing de rived of or limited in the exercise of the remedy provided in this Section because of concepts o waiver, laches, or otherwise) to exercise such remedy at a time when it may still ope otherwise o resolve the problems created by the default involved); nor shall any waiver i fact made by the City with respect to any specific default by the Redeveloper under this Sec on be considered or t Bated as a waiver of the City's rights with respect to any other default by the Redeveloper un er this Section or with respect to the particular default except to t extent specifically waived ' writing. Section 703. E orced Dela in Performance for Causes Beyond Control of Party. Performance by any pa y under this Agreement may be sub j \ref oidable delays outside the control of the party claiming its occurrence, which are the t of strikes, other labor troubles, unusually s ere or prolonged bad weather, acts of r other casualty to the "Minimum Improv ents ", litigat ion commenced by third partof any federal, State or local government unit (other than the City) which directly rh delays. Such delays shall constitute ufficient legal excuse for delayed perforer the terms of this Agreement. Sect' n 704. Rights and Remedies Cumulative. The rights and remedi of the parties to this Agre ent, whether provided by law or by this Agreement, shall be cu lative, and the exercise y either party of any one or more of such remedies shall not preclude th exercise by it, at the e or different times, of any other such remedies for the same default or breach or of any o its remedies for any other default or breach by the other party. No waiver ma e by either suc party with respect to the performance, or manner or time thereof, or any obliga 'on of the 21 other party or any condition to its obligations under this Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. / ARTICLE VIII. MISCELLANEOUS Section 801. Conflict of Interest. Redeveloper agrees that, t its best knowledge and belief, no member, offic or employee of the City, or its designees o agents, nor any consultant or member of the govern'ng body of the City, and no other pu is official of the City who exercises or has exercised functions or responsibilities with spect to the Project during his or her tenure, or who is in a p sition to participate in a decisi - making process or gain insider information with regard to the P ect, shall have any intere , direct or indirect, in any contract or subcontract, or the proceeds ther of, for work to be perf rmed in connection with the Project, or in any activity, or benefit therefro , which is part of is Project at any time during or after such persons' tenure. Section 802. Non - Discrimination. In cai discriminate against any employee or appl ant sex, national origin, gender identity, marital st familial status, presence or absence of depen r Redeveloper shall ensure that applicants f r employees are treated during employme , wi disability, gender identity, marital status, ex, sex dig out the Project, the Redeveloper shall not employment because of race, creed, color, sexual orientation, religion, age, disability, or public assistance source of income. The iloyment are granted employment, and the ,ut regard to their age, race, creed, color, orientation, religion or national origin. Section 803. Titles of Artield and Sections. Anv titles of the several parts, Articles, and Sections of this Agreement are i serted for conve 'ence of reference only and shall be disregarded in construing or interpr ting any of its provisi ns. Section 804. Memor um of A reement. The pa ies agree to execute and record a Memorandum of Agreement, i substantially the form attache as Exhibit K, to serve as notice to the public of the existence provisions of this Agreement, d the rights and interests held by the City by virtue hereof. T e Redeveloper shall pay all costs of ecording. Section 805. G erning Law. This Agreement shall be \overned and construed in accordance with the la s of the State of Iowa. Section 806. Administration of Agreement by City. The City \c r designee shall administer the rig s and obligations of the City hereunder. Section 07. Entire Agreement. This Agreement and the exhibreflect the entire agreement be een the parties regarding the subject matter hereof, anes and replaces all prior agr ements, negotiations or discussions, whether oral or writtAgreement may not be am ded except by a subsequent writing signed by all parties he Pia IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk, and the Redeveloper has caused this Agreement to be duly executed in its name and behalf by its authorized representative, on or as of the day first above written. 7 (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayo ATTEST: By: /DKEVELOPMENT Karr, City Clerk L.L.C. By: ike H ge, Member ATTEST: By STATE OF IOWA ) COUNTY OF JOHNSON ) On this day of 120 , before m a Notary Public in and for said County, personally appeared Matthew J. Hayek and Mari K. Karr, to me personally known, o being duly sworn, did say that they are the Mayor nd City Clerk, respectively of the ity of Iowa City, Iowa, a Municipal Corporation, created an xisting under the laws of the S to of Iowa, and that the seal affixed to the foregoing instrument 's the seal of said Municipal orporation, and that said instrument was signed and sealed on be alf of said Municipal C oration by authority and resolution of its City Council and said Mayo and City Clerk ackn wledged said instrument to be the free act and deed of said Municipal Co oration by it vol tarily executed. 23 STATE OF IOWA CC Th Ho Notary Public in and for the State of Iowa )SS EXHIBIT A MAP OF URBAN RENEWAL AREA EXHIBIT B LEGAL DESCRIPTION OF TOWNCREST URBAN RENEWAL AREA Lots 1 -4, Block 5; Block 6; Lots 1 -4, Block 7; the N 100' of Lot 1 & the E 22' of the N 100' of Lot 2, Block 14; and the S 75' of Lot 8 & the E 10' of the S 75' of Lot 7, Block 0, and to the centerline of all adjacent rights -of -way, East Iowa City Subdivision, Iowa City, wa, according to the plat thereof; and Lots 5 -19, Block 1; Lots -10, Block 2; and Lots 7 -9, Block 3, and to the center line of all adjacent rights -of -way, To crest Addition, Iowa City, Iowa as n on the plat thereof recorded at Book 4, Page 323 the Johnson County Recorder; and sh Commencing at the northwest corn of Lot 12, Block 1, Towndrest Addition, then north 200', then east 107.5', then south 200', the west 107.5', and to th centerline of the adjacent rights - of -way; and Blocks 1 & 2, and Lots 1 & 2, Block 3, an to the enterline of all adjacent rights -or -way, Towncrest Addition Part Two Revised, Iowa Cit Io a, as shown on the plat thereof recorded at Book 6, Page 6 of the Johnson County Recorder; a Commencing at the NE corner of Lot 1, Block/4, To crest Addition Part Two Revised, thence E 160', thence S 148', thence W 160', th ce N 14 ' and to the centerline of the adjacent Muscatine Avenue right -of -way; and The real estate north of and adjacent Muscatine Avenue etween First Avenue and Waters First Addition, excluding the Memor Gardens Cemetery. This area contains approximately ,9.3 acres. 26 EXHIBIT C MDK DEVELOPMENT, L.L.C. 711 South Gilbert St. Iowa City, IA 52240 June 4, 2012 City of Iowa City c/o Jeff Davidson, irector of Planning and Community Development 410 E Washington St. j Iowa City, IA 52240 RE: Towncrest Redevelopment Dear Jeff, MDK Development, L.L.C., whose main prince als ar 191M ike Hodge, Dave Hodge, and Kevin Digmann, are requesting the City's financial assistance for a n w 4,850 square foot medical /office building with 80 parking spaces in the Towncrest area. We cur have under contract 102 Williams St. (ACT Building) and 2611 Muscatine Ave. (Sinclair gas station) Our Ian is to demolish the existing buildings and site. The contractor for the project will be Hodge onstruct nand Architect will be Neumann Monson. The building will be completed as a commerci condominiu and the spaces may be sold to end users. The total project cost is estimated at approx" ately $5,000,00 . Since this project is a redevelopment of two properties into a green field, we a e seeking City assistan a of $950,000 for pre - development expenses and to reduce the acquisiti n and demolition cost to comparable commercial lot in the Iowa City area. The current assessed va a of existing sites combined i4876,950. Enclosed you will find: 1. Building /onstruction 2. Site Pla 3. Summast and Comparable other sites 4. Cost este Project S. Prelimin Schedule 6. Commit from Hills Bank This project woul e a great start to the City's overall plan for redevelopment of the owncrest area. If approved, we w u begin construction this fall with occupancy fall 2013. If you have a y questions please call me t 631 -0548 or email kdigmann @yhoo.com. Sin K Man ger, MDK, Development, L.L.0 Proposal for the Redevelopment of 1020 Williams St. & 2611 Muscatine Ave. Request folT nancial assistance totaling $950,000 through Ta Increment Financing and Towncrest D elopment incentives. 1) Signed lette f interest submitted by the Devel er. Attached. 2) Project Summary Developer plans to Vand Williams and 2611 Muscatine Ave., demolish the existing on site d build n approximate 14,850 sf building. The proposed new bui lde sto with approximately 58 ground level parking spaces. Thero ' ately 22 on street parking spaces. The exterior fagade, bric eet the Towncrest Design Plan requirements. 3) Site plan with front elevation. 4) Description of the Develol Project Owner, Developer Hodge Construction, Mik 319.354.2233, mehodg� Architect: Neuman nt Team nd General Contra tor: Hodge, 711 S. Gilbert t., Iowa City, Iowa. ia.net. n, 221 E College St., Suite\�03, Iowa City, IA 52240 5) Evidence of /siteco trol. Evidence provided to City previously, w in possession of Developer. 6) Potential issed to zoning, environmental hazards, utilities or ther infrastructur Zo ni Setback of less than 10 feet is requested. Exact amount of set ack to F nbe o etermined with final site plan. Mixed use zoning required for a setba less 10 feet. Current zoning is CC -2. vi ro nmental hazards: Project involves removing underground petroleum storage tanks. 7) Development budget. Attached 8) Summary of capital funding sources. Included is lender commitment. Based on conversations with to Vna an Urban Renewal Revenue Note is not feasible as the developer io guarantee t he financial gap that exists with this project. Up to $25,000 of the $950,000)6 pre -dev opment expenses requested for environmental assessment an architectural penses incurred before construction commences. 9) Operating proforma. NA. T ree commercial condomin\offfifice be sold upon completion of constructio . 10) The end users of t e building will be for medical or e. The also may be a small retail users. 11) Preliminary sAedule for the development. Attached. Funding Funding Source & Type of Funds: Amount Bank: _Hills Bank $3,680,00 Applicant Contribution of Equity (private) $440,0 O er Private Resources $0 (plea list) City of Io City $950,000 TOTAL — Lust equal "use of fund $5,070,000 Based on conversations with to Vna an Urban Renewal Revenue Note is not feasible as the developer io guarantee t he financial gap that exists with this project. Up to $25,000 of the $950,000)6 pre -dev opment expenses requested for environmental assessment an architectural penses incurred before construction commences. 9) Operating proforma. NA. T ree commercial condomin\offfifice be sold upon completion of constructio . 10) The end users of t e building will be for medical or e. The also may be a small retail users. 11) Preliminary sAedule for the development. Attached. 1101-01, pr9perty line I. C co 3,244 gsf LO C? 5,000 gS �22 C\j Ti 1T-1 li A 6,605 651-611 cV 51-11, 1 181 1 Q\ 51-11, 7,140 n•5f 9 N- 9 . WTAIM R PARKING SUMMARY: 80 provided 55 req'd for spaces A & B 25 available for space C ed N SITE PLAN 1" = 40'-0" HODGE TOWNCREST NEUMANN MONSON, PC A-a-19 Q\ I 6 q 7,140 n•5f 9 N- 9 . WTAIM R PARKING SUMMARY: 80 provided 55 req'd for spaces A & B 25 available for space C ed N SITE PLAN 1" = 40'-0" HODGE TOWNCREST NEUMANN MONSON, PC A-a-19 Towncrest Medical Plaza Land Pricing and Comparisions SUBJECT SITE Location Parcel size Price /0$ rice /sq ft 2611 Mucatine - Sinclar Station 17,500 $ 537, 30.71 1020 Williams�CT Building) 28,263 $ 750, 26.54 Total site cost Demolition and site preperation Cost to ready site to shovel ready City assistance Net Land Price COMPARABLE SITES 45,763 $ ,287,500 $ 28.13 $ 275,100 45,763 $ 1,562,600 34.15 $ (950,000) 4 ,76 $ 612,600 13.39 Location Parcel size Aski Price Price /sq ft Lot 49 Old Town Village 50,965 $ 650, 00 $ 12.75 2507 N Dodge St 51,401 $ 295,555 $ 5.75 2509 N Dodge St 87,120 $ 500,940 5.75 Average price per sq ft for they sites 189,486 1,446,495 $ 7.63 Hodge Construction - Towncrest Development Estimate of Probable Cost Demolition and Site Preperation Q U $/U Subtotal Total Environmental Assessment sf 3.50 $ 19,600 $ 25,000 Demolition sf $ .73 $ 104,400 ACT Building 148,800 cf $ 0.48 $ 71,000 Relocate electrical service $ 20,000 $ 10,000 Reconstruct Exterior Wall 1,010 sf $ 20.00 $ 20,20 Gas Station 36,000 cf $ 0.48 $ 17,3 0 Canopy Demolition 6,185 cf $ 0.24 $ 00 Underground Storag Tank Removal and Hauling $ ,000 Paving 3,590 sy $ 8.85 $ 31,800 Hauling and Dump fees 1,500 cy $ 16.05 $ 24,100 Contaminated soil removal and r acement 50,000 Retaining Wall 1,200 sf $ 18.5 $ 22,200 Total Demolition and Site Preperation / $ 275,100 Costruction cost of New Building Sitework Walks Paving Curb Lighting Landscaping Allowance Site Amenities Allowance Utilities Building Cost Construction Cost - Shell & White envelope Contingency @ 10.0% / Total Construction Cost Expenses Survey & Soil Borings A/E Fees Printing Misc. Total Costruction co of New Building Land Cost Developer F e - 5% Constru ion Cost - Tenant Improvements Fin Total Project Cost ost Per Square Foot Q $/u Subtotal Total 5,6 sf 3.50 $ 19,600 28, 0 sf $ .73 $ 104,400 ,400 If $ 22. $ 31,500 $ 20,000 20,000 $ 15,000 $ 000 $ 235,500 14,850 sf $ 115.00 $ 1,707,750 $ 707,750 $ 2,000 $ 2,16 250 $ 10,000 $ 216,525 $ 20,000 $ 5,000 $ 251,525 $ 2,691,875 $ 1,287,500 $ 198,969 14,850 sf $ 60.00 $ 891,000 $ 5,069,344 $ 341.37 TOWNCREST CONSTRUCTION SCHEDULE MONTH DESCRIPTION OF WORK June - 2012 City to approve TIF Assistance for the project July Architectural Plans begin August Bid Pro'ect and get final cost for end users to approve August Sign Fi al contracts with end users Sept Close o Properties, Begin demolition of Properties Oct Begin Site k and Underground Utilities Nov Foundation & E rical Groundwork Dec Building Structure, Ex rior Skin, M/E Rough -in Jan - 2013 Building Structure, Exteri Skin, M/E Rough -In Feb Building Structure, Exterior 'n, M/E Rough -In March Interior Construction, M/E Rou -in April Interior Construction, M/E Rough -i May Interior Finishes June Interior Finishes July Interior Finishes August Punchlist & Misc Finish Items September Occupancy z i' 'C 011 April 25, 2012 City f Iowa City 410E Wash ington St Iowa City 52240 RE: Hodge Co truction Company 711 S Gilbert Iowa City IA 52 0 131 Main 5tr et Hills, low 2235 319 -67 -2291 After reviewing financial info ation and the p oposed plans for construction in the Towncrest area of Iowa City, Hills Bank is pleased t rovide a c mmitment of financing to Hodge Construction Company and or related entities for construc 'on pur oses. Loans to the company would not exceed 80% of the appraised value of the facilities upon letion. A construction loan will be secured by a first mortgage on the property and will also uire personal guarantees. At the present time, the loan would bear an interest rate of 4.5% p r ann for one year from closing. The commitment of this rate will be good for 45 days from the d e of this ter. Upon completion of the project it is anticipated tha any part of the facility that is retained by the company will then be amorti d over a period not to teed 25 years. The interest rate for permanent financing will be determine at the time of extension. if you have any question or if there is any way that I ca\beo it ional assistance to you, please feel free to contact me. Sincerely, Tim N. Smit Senior Vic President TNS/ Hills • Iowa City • Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion hillshank.cnm 1 -800- 445 -5795 z 0 w -j LLJ CD LIJ E r- 9 LU -r D 0 C/) z 0 w -r F- ix 0 m U) z 0 w -i w CL z 0 U) z 0 z D w z LU o 0 &D C) 0 7 EXHIBIT D MINIMUM IMPROVEMENTS AND USES On June 4, 2012, the Redeveloper submitted a Redevelop ent proposal shown on Exhibit C for a private redevelopment project. The redevelopment pr9posal provided for a commercial structure with commercial and medical office s/andemolition inimum Improvements" may now be more specifically defined as follows: 1. he project will consist of the acquisitioon of existing structures at 1020 iams St. and 2611 M uscatine Ave. tew 14,850 SF one story building or c mercial and medical offices that the Towncrest Design Plan. The building ll consist of three condominiu 000 and 3,244 SF. 2 The Redeveloper sh provide, at a mi imum, 58 parking spaces on site and shall dedicate right of way to the C!W at no cost on Williams St. for the creation of an additional 22 on street spaces perpendi lar to t e building. 28 EXHIBIT E EXHIBIT F MINIMUM ASSESSMENT AGREEMENT 1020 Williams St. & 2611 Muscatine Ave. THIS MINIMUM ASSESSMENT AGREEMENT, dated as oft day of 2012, by and among the CITY OF IOWA TY, IOWA, ( "City "), MDK Development L.L.C., an Iowa limited liability corporation, ( "Re veloper'% and the CITY ASSESSOR of the City of Iowa City, Iowa ( "Assessor "). WITNESSETH: WHEREAS, it is contemplated that the RedpveloperAill undertake the development of an area (" Project") within the City and within the "TowncreX Urban Renewal Area "; and WHERE A ,the City is making a significant t of funds to the Redeveloper which will allow the Re de oper to construct the Project; an WHEREAS, the ' will be reimbursed r such grant from the property tax revenues generated from the Project; d WHEREAS, pursuant to owa Code Vlction 403.6 (2011), as amended, the City and the Redeveloper desire to establish a*inimuo actual value for the land locally known as 1020 Williams St. & 2611 Muscatine Av legally described in Exhibit E to the Agreement for Private Redevelopment; and WHEREAS, the City and specifications for the "Minimum Im NOW, THEREFORE ' Ale parties consideration of the promises, venants and follows: )r have reviewed the preliminary plans and to be erected as a part of the development; this Minimum Assessment Agreement, in �knents made by each other, do hereby agree as 1. As of January 1, 2014/a full assessment shall be ma fixing the minimum actual taxable value for assessment p oses for the land and "Minimu Improvements" to be constructed thereon by the Redevel per at not less than $2,225,000 after to ing into consideration any factors such as "roll backs" hich would reduce the taxable value of e property ( "Minimum Actual Value "). The part's hereto acknowledge and agree that co truction of the "Minimum Improvements" w' 1 be substantially completed on or before Decemb r 31, 2013. 2. he Redeveloper recognizes that the grant to the Rede eloper pursuant to the Agreement i conditional upon sufficient property taxes being generated b this Project to repay the Genera Fund loan to make such grant. The City will need property taxe from the Project in the amoun and at the times set forth in Schedule Y to this Minimum Assessm nt Agreement. If for any re son the property taxes are less than the amount set forth on Schedule Y for any fiscal year, the assessor shall increase the assessed value of the Project for the next 1 cal year in an 30 amount to cover such property tax deficiency. If for any reason, the assessor does not so increase the assessed value, Redeveloper shall make a payment to the City in the amount of the difference between the property tax revenue and the cost of the loan payment. 3. The Redeveloper contemplates that the Project will consist of three condominium units. The Redeveloper agrees that at the time of the execution of the dec aration required by Chapter 49SO Horizontal Property (Condominiums) of the Code of lowaA 11, an attachment to the declarati n will be executed by the Redeveloper, the City and the y Assessor allocating a portion of the inimum Actual Value to each unit. 4. The inimum Actual Value (as adjusted pursu t to paragraph 2 hereof) herein established shall be no further force and effect and this/A41nimum Assessment Agreement shall terminate on Apri 1, 2035 when the final installment n the General Fund loan is made, or when the loan is paid in f , whichever is earlier. Nothing herein shall N deemed to w aive t Redeveloper's rights under Iowa Code section 403.6(19) (2011), as nded, to contest at portion of any actual value assignment made by the Assessor in excess of e =nimum tual Value (as adjusted pursuant to paragraph 2 hereof) established herein. In no er, except as set forth in the first paragraph of this Section 4 shall the Redeveloper se the actual value assigned below the Minimum Actual Value (as adjusted pursuant to 2 hereof) established herein during the term of this Agreement. 5. This Minimum Assess ent A reement shall be promptly recorded by the Redeveloper with the Recorder of Jo on Coun "lo The Redeveloper shall pay all costs of recording. 6. Redeveloper has rovided a title opim n to the City listing all lienholders of record as of the date of this Ass ssment Agreement and a such lienholders have signed consents to this Assessment Agreemen , which consents are attached ereto and made a part hereof. 7. Neither the Aeambles nor provisions of this Min um Assessment Agreement are intended to, or shall b construed as, modifying the terms o the Agreement for Private Redevelopment betwee the City and Redeveloper. 8. This Pnimum Assessment Agreement shall inure to the efit of and be binding upon the successor and assigns of the parties. go CITY OF IOWA CITY, IOWA Matthew J. Hayek, Mayor ATTEST: 31 STATE OF IOWA COUNTY OF JOHNSON On this day of and for said County, personally a personally known, who being duly respectively of the City of Iowa City the laws of the State of Iowa, and t said Municipal Corporation, and Municipal Corporation by autho ity Clerk acknowledged said inst men by it voluntarily executed. RE Marian K. Karr, City Clerk MDK DEVELOPMENT Y.L.C. By: Mike Hodge ATTEST: By: 20_, before me a Notary Public in ppe ed �1,1�1 he w J. Hayek and Marian K. Karr, to me s d y that they are the Mayor and City Clerk, , owa, a Muni 'pal Corporation, created and existing under at the seal affix to the foregoing instrument is the seal of at said instrument as signed and sealed on behalf of said and resolution of it City Council and said Mayor and City t to be the free act an deed of said Municipal Corporation Notary Public in and r the State of Iowa STATE O/JHNSON ) )SS COUNTY This instracknowledged before me on this day of 20_, by Mike Hodge as MDK Development L.L.C. Notary Public in and for the State of kwa CERTIFICATION OF ASSESSOR 32 The undersigned, having reviewed the plans and specifications for the "Minimum Improvements" to be constructed and the market value assigned to the land upon which the "Minimum Improvements" are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of "Minimum Improvements" to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such land, building and equipment upon completion of the redevelopm t shall not be less than $2,225,000 after taking into consideration any factors such as "roll- backs' hich would reduce the taxable value f the property. Of this amount, four hundred thousand D lars ($400,000) is determined to b the value of the land and one million eight hundred twenty - i e thousand Dollars ($1,825,0 ) the value of the building thereon until termination of this Mini um Assessment Apreemen ursuant to the terms hereof. Assessor for I9Kva City, Iowa STATE OF IOWA ) COUNTY OF JOHNSON ) Subscribed and sworn to before n I by Iowa City, Iowa. Assessor for Notary Public inl a d for Johnson County, Iowa Date 33 Schedule Y 1020 William St. & 2611 Muscatine Ave. Full assessment begins on January 1, 2014 ($2,225,000 valuation) TIF millage rate per thousand: 31.85765 34 TIF Rate 31.85765/ Payment Dates Increment thousand F' cal Year Total 10/1/2012 4/1/2013 10/1/2013 4/1/2014 10/1/2014 4/1/2015 10/1/2015 $1,339,120 $2 ,331 4/1/2016 $1,339,120 21,331 $42,661 10/1/2016 $1,339,120 $21,331 4/1/2017 $1,339,120 $21,331 $42,661 10/1/2017 $1,339,120 $21,331 4/1/2018 $1,339,120 21,331 $42,661 10/1/2018 $1,339,120 $ 331 4/1/2019 $1,339,12 $21, 31 $42,661 10/1/2019 $1,339, 0 $21,3 4/l/2020 $1,33 ,120 $21,331 $42,661 10/1/2020 :$",�, 9,120 $21,331 4/1/2021 33 9,120 $21,331 $42,661 10/1/2021 1,339,120 $21,331 4/1/2022 $1,339,120 $21,331 $42,661 10/1/2022 $1,339,120 $21,331 4/1/2023 $1,339,120 $21,331 $42,661 10/1/2023 $1,339,120 $21,331 4/1/2024 $1,339,120 $21,331 $42,661 10/1/20 4 $1,339,120 $21,331 4/1/2 25 $1,339,120 $21,331 $ 2,661 10/ /2025 $1,339,120 $21,331 1/2026 $1,339,120 $21,331 $42, 1 10/1/2026 $1,339,120 $21,331 4/1/2027 $1,339,120 $21,331 $42,661 10/1/2027 $1,339,120 $21,331 4/1/2028 $1,339,120 $21,331 $42,661 34 10/1/2028 $1,339,120 $21,331 4/1/2029 $1,339,120 $21,331 10/1/2029 $1,339,120 $21,331 4/1/2030 $1,339,120 $21,331 10/1/2030 $1,339,120 $21,331 4/1/2031 $1,339,120 $21,331 10/1/2031 $1,339,120 $21,331 4/1/2032 $1,339,120 $21,331 10/1/2032 $1,339,120 $21,331 4/1/2 33 $1,339,120 $21,331 10/1/20 $1,339,120 $21,331 4/1/2034 $1,339,120 $21,331 10/1/2034 $1,339,120 $21,331 4/1/2035 $1,339,120 $21,331 TOTAL: IT G MEMORANDI $42,661 $42,661 $42,661 $ $42,661 $42,661 $42,661 $853,224 WHEREAS, the City of I a City, Iowhe "City ") and MDK Development L.L.C. (the "Redeveloper "), did on or a out the a t e day o , 2012, make, execute and deliver an Agreement for Priv e Redevelopment (th "Agreement "), wherein and whereby the Redeveloper agreed, in acco ance with the terms of e Agreement and the Towncrest Urban Renewal Plan (the "Plan "), develop certain real prope located within the City and within the Towncrest Urban Renew Area and as more particularly d cribed as: NEED and WHE AS, the term of this Agreement shall commence on e 20th day of June, 2012 and terminat on April 1, 2035 or when the loan is paid off, whichever earlier; and EREAS, the City, and the Redeveloper desire to record a Memorandum of the Agree ent referring to the Redevelopment Property and their respective int rests therein. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 35 1. That the recording of this Memorandum of Agreement for Private Redevelopment shall serve as notice to the public that the Agreement contains provisions restricting Redevelopment and use of the Redevelopment Property and the improvements located and operated on such Redevelopment Property, and further subjects the Redevelopment Property to a Minimum Assessment Agreement entered into under the authority of Iowa Code Chapter 403, in which the City and the Redeveloper (and any successors or assigns) agree that, as of January 1, 2014, a full assessment sha 1 be made fixing the minimum actual value of the Redevelopment Property and all improve__ is located thereof for calculation of real property taxes at not less than $2,225,000 after taking into consideration any factors such as "roll- backs" which would reduce the taxable value of the rooertv. 2. That all of the p visions of the Agreement and any subs uent amendments thereto, if any, even though not et forth herein, are by the filing of is Memorandum of Agreement for Private Redevelopm t made a part hereof by reference, nd that anyone making any claim against any of said Propert in any manner whatsoever sha be fully advised as to all of the terms and conditions of the Agr ement, and any amendment thereto, as if the same were fully set forth herein. 3. That a copy of the Agreer shall be maintained on file for public insf the City Clerk, City Hall, Iowa City, Iowa. IN WITNESS WHEREOF, the Memorandum of Agreement for Private Re (SEAL) STATE OF IOWA 1 161 MI J I I 1 i `ZU S I GN 02 06 M and any subs quent amendments thereto if any, n during ordinary business hours in the office of ;CITY OFl By: Matthew J ATTEST: the Redeveloper have executed this as of the day of June, 2012. WA CITY, IOWA Mayor Marian K. Karr, CiN Clerk MDK DEVELOPMENT L\L,.C. By: Mike Hodge we On this day of , 20 , before me a Notary Public in and for said County, personally appeared Matthew J. Hayek and Marian K. Karr, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on be 1f of said Municipal Corporati %sid y authority and resolution of its City Council and said yor and City Clerk acknowledged instrument to be the free act and deed of said Muni 'pal Corporation by it voluntarily exe Notary Public in and foy°the State of Iowa STATE OF IOWA ) )SS COUNTY OF JOHNSON ) This instrument was acknowledged beforee on thi day of , 20_, by Mike Hodge member of MDK Development L.L. Public in and for the State of Iowa 37 EXHIBIT H OPINION OF COUNSEL City of Iowa City Iowa City, Iowa RE: Agreement for Private Redevelopment by and between the City of Iowa City, Iowa and MDK Development L.L.C. City Representatives: We have acted as co u el for MDK Development L.C., an Iowa limited liability company (the "Company "), in onnection with the ex ution and delivery of a certain Agreement for Private Redevelopmen (the "Redevelopme Agreement ") between the Company and the City of Iowa City, Iowa (the "Ci ") dated as of , 2012. We have examined the original certi ed copy or copies otherwise identified to our satisfaction as being true copies, of the follo 'ng: (a) The organization and opgNting agreement of the Company; (b) Resolutions of the C pany which action was taken with respect to the transactions covere by this op ion; (c) The Redevelop ent Agreement; and such other documents and rec ds as we have deemed levant and necessary as a basis for the opinions set forth herein. Based on the pertine law, the foregoing examination d such other inquiries as we have deemed appropriate, w are of the opinion that: 1. The Com any was duly organized and validly e3qsts as a limited liability company under the law of the State of Iowa and is qualified to do bu 'ness in the State of Iowa. The Company has 11 power and authority to execute, deliver d perform in full the Redevelopment Agr ement; and the Redevelopment Agreement was dul and validly authorized, executed and deliv red by the Company and, assuming due authorization, xecution and delivery by the City, is ' full force and effect and is a valid and legally binds g instrument of the Company enfo ceable in accordance with its terms, except as the same may be limited by bankruptcy, ' solvency, reorganization or other laws relating to or affecti creditors' rights generally. 2 The execution, delivery and performance by the Company of the Vedevelopment Agree ent and the carrying out of the terms thereof, will not result in violation o any provision of, or in default under, the articles of organization and operating agreement of the Company or 38 any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which the Company is a party or by which it or its property is bound or subject. 3. There are no actions, suits or proceedings pending or threatened against or affecting the Company in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective) , financial position pr results of operations of the Company or which in any manner raises any questions affe ing the validity of the Agreement or the Company's ability to perform its obligations thereu der. ! CITY OF IOWA CITY 21 MEMORANDUM Date: June 14, 2012 To: Tom Markus, City Manager From: Marcia Bollinger, Neighborhood Services Coordinator Re: FY2013 Program for Improving Neighborhood (PIN) Grant Recommendations Introduction: The Neighborhood Council of Iowa City (NCIC) has recently reviewed the FY2013 grant applications presented by various neighborhood associations for funding through the Program for Improving Neighborhoods (PIN) Grant program. This is the seventeenth year the City has made funding available to neighborhood associations to make improvements in their neighborhoods. This year, $15,000 was appropriated for funding the Program for Improving Neighborhoods. History/Background: The Neighborhood Council developed the program guidelines, the ranking criteria, and process for evaluating the applications when the program began in 1995. They revisited these program details in 2002 and clarified the use of PIN funds on private property, for school district playgrounds and for programs that are extensions of existing City services such a spring brush cleanup and couch disposal. They reviewed the ranking criteria again in 2008 and made some minor changes. Discussion of Solution: This year, ten grant applications from eight neighborhood associations totaling $15,077.41 were reviewed. The Neighborhood Council reviewed the applications, clarified details and negotiated funding levels. The following is a list of all grant requests, the amount initially requested and the amount being recommended for funding. Attached are the applications that have been recommended for funding. The neighborhood association's representatives will provide a brief presentation of the recommended 2013 Program for Improving Neighborhoods (PIN) Grants at your June 19 meeting. Recommendation: A resolution approving this recommendation and authorizing expenditure of these funds will be considered at the June 19, 2012 City Council meeting. The Neighborhood Council recommends that the City Council approve this recommendation for the FY13 Program for Improving Neighborhood grants. MELROSE Plantings at Brookland Park 650.41 650.41 Amount Requested Amount Recommended GRANT WOOD Workshops $750.00 $672.59 PTO Dinners 900.00 900.00 Fairmeadows Garden 1851.00 1851.00 Roller Skates 900.00 900.00 Roller Skating Staff 3370.00 3370.00 Curb Numbering 956.00 956.00 MELROSE Plantings at Brookland Park 650.41 650.41 NORTHSIDE NMS Grant Opening PARTIES IN THE PARK College Green, Melrose, Miller Orchard Kiwanis and Goosetown LITTLE FREE LIBRARIES Miller Orchard (1), Northside (2), Grant Wood (2) Longfellow (2), Goosetown (1), Melrose (1) 600.00 600.00 1500.00 1500.00 3600.00 3600.00 TOTAL $15077.41 $15,000.00 � r � � �� ;61 CITY OF IOWA CITY PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: Workshops /events at Grant Wood Gym Grant Wood Neighborhood Association Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Location is: Public property X_ Cindy Roberts - 2034 Grantwood – 337 -6034 Private property School District property —X Amount of Funds Requested: Time Period of Proposed Project: $ 750.00 From: July 2012 To: June 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months: See attached activities list Summer 2011 – Spring 2012 Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals This project is to utilize the Grant Wood gymnasium, which is joint facility owned by the City and the school district. Our mission is to improve the overall quality of life in the Grant Wood neighborhood as well as bring residents together who share common interests. Our events are open to residents from any neighborhood. We have held events with educational opportunities, workshops, and other activities. Our goal is to make our neighborhood appealing to all, those who live within our neighborhood and those who come to events held in our neighborhood. We look for needs within our neighborhood and try to address those with speakerstworkshops on those topics. Our goal is to have at least 5 workshops /events for the year -2 in the fall,2 in the spring,1 in the summer. Add additional pages if necessary C. General List and Description of Activities with estimated time line:(please indicate if this project will or could be phased over a number of years) The following is a tentative list of speakers /workshops we will be doing if this PIN grant is approved: HyVee Cooking Class Piano lessons offered as part of Grant Wood summer 2012 program - provided to elementary age students Gardening workshop Safety Day D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.GWNA ❑ x x 2. HyVee Waterfront Store x x x ii o 0 Page 2 PROGRAM FOR IMPROVING NEIGHBORHOODS e the process used to solicit neighborhood input into this funding request and summarize ack has been requested via our newsletter and neighborhood email contact group. We also feedback from those individuals who attend our events to determine future ideas. FFexplain. Add additional pages if necessary. his project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please Yes, the events are free and open to all. We plan different a variety of event with the intent to offer items that can be of interest to a variety of age levels. We post flyers in the area, include details in our newsletter and have information included in the Grant Wood Elem newsletter. Our neighborhood is in Census Tract 18 which has an average of ^-56% low to moderate income families. The number of children who receive free and reduced lunch at Grant Wood School was —58% in 2011/12. Add additional pages if necessary. G. Could the project occur without PIN funding? No, we feel that these workshops would not occur because we want to give each speaker an Honorarium for the use of their time and expertise as well as provide door prizes /materials to encourage participation. Add additional pages if necessary. H. Could the project operate with less funding? The number of workshops /events could be decreased with less funding. EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $ $ May be supplied by presenter J. Project Materials(marketing $175.00 includes yard flyers) signs for publicity K. Professional Services L. Contracted Improvements M. Other Costs(List) workbooks, $250.00 door prizes, plants, helmets Honorarium for 4 speakers @ $50 $250.00 each TOTALS $675.00 $ $ • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program forlmproving Neighborhoods Grant Program does not guarantee any level of funding Grant Wood Neighborhood Association Summer 2011— Spring 2012 Activites Neighborhood Events • Fair Meadows Party in the Park -Sept 2011 • Fair Meadows community Garden expanded summer 2011 • Grant Wood Holiday Markets -Nov & Dec 2011 • Grant Wood Market - Off - season market January — April 2011 • Friday Night Roller Skating events at Grant Wood gym. • Family Supper program in cooperation with the Grant Wood Parent /Teacher Organization Newsletters & additional communication • 2011: June, Sept, Oct, Nov • 2012: January, March • Continued to maintain the GWNA website at http: / /grantwood.wordpress.com/ • Continued to regularly communicate with ~200 Grant Wood residents who have signed up to receive Grant Wood News updates. • "Meet Your Neighbor" articles incorporated into newsletters Neighborhood Association Meetings Held: • January 2011 Workshops Let's Get Organized Workshop- Oct 2011 Pocket Gadget Workshop -Oct 2011 HyVee Cooking Class —Nov 2011 City Compost bin sale — April 2012 Compost workshop — April 2012 Piano lessons at Grant Wood Share with Melissa Brobston /summer 2011 Pet Care Fair —April 28, 2012 Grant Wood Safety Day — May 23, 2012 In progress... Neighborhood Art Project with Jill Harper, City High Art teacher I r A ~ kLtt CITY OF IOWA CITY PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: Grant Wood Elementary PTO Family Dinners Grant Wood Neighborhood Association Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Cindy Roberts, 2034 Grantwood — 337 -6034 Location is: Public property Private property School District property —x — Amount of Funds Requested: Time Period of Proposed Project: $ 900.00 From: Sept.2012 To: May, 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. See attached item "A" for details. B. Describe the project; why is it needed and what are its goals This is our third season requesting funding so we can continue our collaborative effort with the Grant Wood Elementary PTO. These funds assist the PTO in providing a simple supper and childcare during monthly PTO mtgs. This funds have helped increase parent participation at PTO meetings. We believe this is another way for us to reach out to neighborhood residents, especially those who may have limited resources. We view funding that helps provide simple suppers and childcare for PTO meeting benefiting our neighborhood school as well as our neighborhood. See attached letter of support from Michelle Eckland, Grant Wood PTO Treasurer C. General List and Description of Activities with estimated time line:(please indicate if this project will or could be phased over a number of years) Monthly PTO meetings are held on the third Monday of each month. The number of meetings is 8 -10 during the school year. Meals include a simple entree, fresh fruit or vegetable and a light dessert . This food is purchased by the PTO and brought to the school. Generally, two child care provider are needed and are hired by the PTO board members. The number of parents attending the meetings varies. An average of 15 -20 parents attend, several with small children. The Grant Wood Neighborhood Association helps promote the Family Dinners through their newsletter. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.PT0 Board x ❑ ❑ x 2.GWNA x ❑ ❑ x 13. ❑ ❑ ❑ ❑ ii Page 2 PROGRAM FOR JMPROVING NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: The Grant Wood Neighborhood Association requested input via our January 2012 newsletter and the neighborhood email contact list. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Yes. Grant Wood school has a -60% minority population and -65% live in poverty. Some of the famlies have limited resources to provide day care or a simple healthy meal to their families so they can be involved in a volunteer organization. G. Could the project occur without PIN funding? PTO meetings would continue but the ability to provide a simple meal to participants would not be possible. H. Could the project operate with less funding? Fewer meals could be offered, but the goal of the project is to provide a simple meal at each meeting which amounts to 8 -9 meetings during the school year. EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $600.00 -food $ J. Project Materials K. Professional Services 300.00 - childcare L. Contracted Improvements M. Other Costs(List) TOTALS $900.00 $ $ Grant Wood Elementary PTO The Grant Wood Neighborhood Association provides our Grant Wood PTO with the support it needs to bring parents and volunteers to the PTO meetings. The meals and childcare make it possible for parents to commit to these meetings to support our students and school. If we were not able to have this provided, there may be those parents who could not make it to meetings due to meal times or no childcare. The PTO appreciates all the Grant Wood Neighborhood Association brings to help our school be accessible to its students, staff and parents. We would like to continue providing meals and childcare at our meetings to keep our parents involved. Thank you, Grant Wood PTO 1p z , ti e Ec b1�rl W CA/ ra rf coc g-vr &r^ r PROGRAM FOR IMPROVING NEIGHBORHOODS -�-� PIN Grant Program Application CITY OF IOWA CITY CADocuments and Settings \mklingaman\Local Settings \Temporary Internet Files\ Content. Outlook\ B6LFDSRU\ 2013GWcommunitygardenPlNgrant- 1.docx Project: Name of Neighborhood Association: dows Community Garden Grant Wood Neighborhood Association GWNA dress /Phone Numbers of Contact Per- Location of Proposed Project: FAa Fair Meadow Park ble Location is: Public property X ifornia Ave Private property ❑ School District ❑ , IA 52240 -2308 property 5113 Amount of Funds Requested: Time Period of Proposed Project: $_1851.00 From: June 2012 To: March 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. GWN publishes a newsletter every month, holds regular workshops including, pet fairs, gardening, knitting, holds farmers markets, and also hosts roller skating every Friday evening. Add additional pages if necessary, B. Describe the project; why is it needed and what are its goals. Two years ago with the help of Eco Iowa City and the City of Iowa City, GWNA started a community garden in Fair Meadows Park to familiarize individuals in the neighborhood with fruits and vegetables and how they can be easily and inexpensively grown. This year the garden will expand it services to the neighborhood by joining with the Farm to School program, Master Gardeners, and 4 -H to allow the neighborhood garden to also serve as a school garden for Grant Wood Elementary. This grant would allow us to further expand the garden to grow a greater variety of fruits and vegetables. It would also create trellises to improve the vertical space for growing cucurbits, completion of the center of the garden with a sunflower house, tools, requiring fencing and seed. This will allow individuals to easily see the plants and vegetables and their growth patterns further familiarizing individuals with health food options.. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). Fencing, landscaping, signage planting, compost, mulching - March /April Workshops & harvesting - throughout the summer and fall. CADocuments and Settings \mklingaman\Local Settings \Temporary Internet Files\ Content. Outlook\ B6LFDSRU\ 2013GWcommunitygardenPlNgrant- 1.docx D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.City of Iowa City Parks Department ❑ ❑ ❑ x 2. Farm to Table x ❑ ❑ x 3.Grant Wood Neighborhood Association x ❑ ❑ x 4. FasTrack x ❑ ❑ ❑ 5.Master Gardeners x ❑ ❑ x 6.4 -H x x x x CADocuments and Settings \mklingaman\Local Settings \Temporary Internet Files\ Content. Outlook\ B6LFD8RU\ 2013GWcommunitygardenPlNgrant- 1.docx Page 2 •'1 1 1 1 "1 1 1:I 1II� E. Describe the process used to solicit neighborhood input into this funding request and summarize results: The garden is discussed in neighborhood meetings and is mentioned monthly in the newsletter. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. The intent of this program is to familiarize individuals, especially children, within the Grant Wood neighborhood with healthy food options and the availability of anyone to grow their own food. Children in the neighborhood are actively encouraged to help in the planting and maintenance of the garden. The produce from the garden is donated to children who participate in the MYEP /FasTrac program. G. Could the project occur without PIN funding? The garden expansion would be limited Add additional pages if necessary. H. Could the project operate with less funding? No. Most of the funding will be used to purchase fencing to surround the garden. The seeds and starts will be donated and, if possible, the paths with be constructed from recycled material. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $1951 $500 MG & 4 -H Com. Partner Grant J. Project Materials $ $ $ K. Professional Services $400 $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ TOTALS 1 $2351.00 $500 $ • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program for Improving Neighborhoods Grant Program does not guarantee any level of funding CADocuments and Settings \mklingaman\Loeal Settings \Temporary Internet Files\ Content. Outlook\ B6LFD8RU\ 2013GWcommunitygardenPlNgrant- 1.docx Item Cost 4uanty Toal Cost Garden Shed 500 1 500 Shovel 12 3 36 Garden Trowel 5 5 25 100 ft Garden Hose 40 1 40 Garden Culivator 5 2 10 Circle Hoe 20 1 20 Wheelbarrow /Carden Cart 60 1 60 Garden Rake 20 1 200 Compost Bins 60 1 60 Garden Hoe 20 1 20 Fencing 40 1 40 Cattle Panels /Trellis Panels 50 4 200 Stakes 30 30 Lables 10 10 Compost 5 5 Compost Delivery 200 200 Mulch Delivery 200 200 Sunflower Seeds 5 5 1661 r PROGRAM FOR J t "�° *� IMPROVING NEIGHBORHOODS -�-� PIN Grant Program Application CITY OF IOWA CITY Name of Project: Name of Neighborhood Association: Grant Wood Roller Skates Grant Wood Neighborhood Association Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Grant Wood School Gymnasium Alicia Trimble - 2232 California Street Location is: Public property Private property ❑ School District property Amount of Funds Requested: Time Period of Proposed Project: $ 900.00 From: July /August, 2012 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. see attached Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. The Grant Wood Roller Skating Parties have become a very popular event every Friday night since the Grant Wood Neighborhood Association secured funding for roller skates and staffing. Typical roller skating events attract over 100 people. It has become apparent that some sizes of skates are used more frequently than others - 4, 5 and 6 and many young people must wait their turn to use the skates. This grant request would purchase 5 pairs of each size skate ($50 each for size 4 and $65 each for sizes 5 and 6) All skates previously purchased have been ordered through Scheels as they have provided most reasonable prices, great customer service and free delivery. The Parks and Recreation staff will continue to staff the roller skating events, oversee maintenance of the skates and make repairs as necessary. The Grant Wood Neighborhood Associaiton will continue to promote the events in their newsletter, email list and website. Add additional pages if necessary. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). August 2012 - order skates from Scheels All Sports Add additional pages if necessary. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.1owa City Park and Recreation Department ® ❑ ❑ ED 2.Grant Wood Neighborhood Associaiton ® ❑ ❑ 3. ❑ ❑ ❑ ❑ 14. ❑ ❑ ❑ ❑ UAPIN grant \FY2013 \grant wood roller skates.docx E. Describe the process used to solicit neighborhood input into this funding request and summarize results: The Grant Wood Neighborhood Association requested input on potential PIN grant projects both in their January, 2012 newsletter as well as email requests. Add additional pages if necessary. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Yes. These events will be free and open to all. Our neighborhood is in Census Tract 18 which has an average of 56.4 % low to moderate income families. The percentage of children attending Grant Wood Elementary that were receiving free and reduced lunches was 64.84% in the 2009 -10 school year. Add additional pages if necessary. G. Could the project occur without PIN funding? There are currently no other grant opportunities available for this type of purchase. Park and Recreation budgets do not provide for this type of equipment. Add additional pages if necessary. H. Could the project operate with less funding? Less skates could be purchased. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $900.00 $ $ J. Project Materials $ $ $ K. Professional Services $ $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ $ $ $ TOTALS $900 $ $ ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program for Improving Neighborhoods Grant Program does not guarantee any level of funding UAPIN grant \FY2013 \grant wood roller skates.docx bow CITY OF IOWA CITY PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: Staff for Roller Skating at Grant Wood Gym Grant Wood Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Grant Wood Gym Location is: Public property x Alicia Trimble — 2232 California Street Private property ❑ School District property x Amount of Funds Requested: Time Period of Proposed Project: $ 3370.00 From: August 2012 To: June 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. See attached information Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. The Grant Wood Neighborhood, through grants received both by the Program for Improving Neighborhoods, United Way and assistance through the IC Recreation Department, have purchased 78 pairs of roller skates that fit both adults and children that are stored in a closet adjacent to the Grant Wood gym. The gym facility, a coordinated effort between the Iowa City Community School district, Neighborhood Centers of Johnson County and the City of Iowa City was constructed to not only expand operations of Grant Wood school but to operate as a "community center"— offering activities and use of the gym for a variety of activities in the evening and on weekends. The Grant Wood Neighborhood Association utilized PIN grant funding last year to provide staffing for Friday night skate parties and purchase additional roller skates which have proven to be VERY popular for school children and adult alike. Typical Friday night skating events will see over 100 people participate. These funds will provide funding for 2 -3 staff people to be available each Friday evening (2 Y2-31/2 hours each) for 9 months (during the school year). The Iowa City Recreation Division will contribute to the project by hiring appropriate staff and administering supervision. The Grant Wood neighborhood association works with the Grant Wood School administration to promote these activities to the school children as well as include the information in the neighborhood newsletters and press releases to the various media resources. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). Roller skating parties would begin in August 2012, held every Friday through June, 2013 to coincide with the school year. Each roller skating party would last for 2 1/2 hours. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.1owa City Park & Recreation Dept. x x ❑ x 2.Grant Wood Neighborhood Association x ❑ ❑ x 3. GW school staff — custodial and administrative X ❑ x x Describe the process used to solicit neighborhood input into this funding request and summarize results: The Grant Wood Neighborhood Association requested input on Program for Improving Neighborhoods both through their January, 2012 newsletter and email soliciation. Add additional pages if necessary, F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Yes, low income people would be able to participate because this activity would be free and open to everyone. Children /adults with handicaps can roller skate and if they have workers they can skate along with them and help them. It is an activity that elderly can take part in by either coming to skate or by bringing their grandchildren /neighbor /friends children to or just come to watch. Our neighborhood is in Census Tract 18 which has an average of 56.4% low to moderate income families. The number of children who receive free and reduced lunch at Grant Wood School was 64.4% in 2009/10 school year. Add additional pages if necessary. G. Could the project occur without PIN funding? NO, this activity could not happen without Pin Grant funding. The Park & Recreation Dept does not have any money in their budget for regular staffing at the Grant Wood Gym. Add additional pages if necessary. H. Could the project operate with less funding? Yes, but would lessen the number of skating parties that could be supervised by staff. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies Skates $ $ $ J. Project Materials $ $ $ K. Professional Services $3370.00 $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ Misc $ $ $ TOTALS $3370.00 $ $ %ice CITY OF IOWA CITY PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: FasTrac Curb Numbering Project Grant Wood Neighborhood Associations Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Grant Wood, Wetherby and Pepperwood Cindy Roberts - 2034 Grantwood - 337 -6034 neighborhoods Location is: Public property Private property ❑ School District property ❑ Amount of Funds Requested: Time Period of Proposed Project: $_L96.70 From:iuly 1, 2012 To:June 30, 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. See attached activities list Summer 2011 - Spring 2012 B. Describe the project; why is it needed and what are its goals. This project will provide the opportunity for residents of the Grant Wood, Wetherby and Pepperwood neighborhoods to have the curb in front of their homes and adjacent to their mail boxes painted with their house numbers - free of charge. This service will be provided by students involved in the FasTrac program through the Mayors Youth Empowerment Program. (See attached letter from Henri Harper). The curb numbering also makes it easier to locate properties along a street as all house numbers are in a consistent location. A "logo" is also being developed that will included as part of the numbering that will lend further identity to the neighborhood — tying the project as well as the neighborhood together. Paint used for this project will be formulated specifically for use on concrete and is expected to remain readable for 10 years or more. There is an estimated 1800 properties in the Grant Wood, Wetherby and Pepperwood neighborhoods. The social interaction that will occur between the FasTrac students and the residents of the neighborhood is the more "valuable" component of this project. It is important to Henri Harper to see youth interact positively with their neighbors which might then develop into continued positive interaction. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). Purchase supplies Train students Project Implementatoin - start July 2012, continue through June, 2013 as time and resources allow D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed UAPIN grant\ FY2013\ fastraccurbpaintingprojectupdated .doc 1.Henri Harper - supervision of student 2.Ken Funk - equipment purchasing and training 3.Grant Wood, Wetherby and Pepperwood neighborhoods - promotion of project to residents 4. Page 2 ® ❑ ❑ Describe the process used to solicit neighborhood input into this funding request and summarize ® ❑ ❑ Feedback was requested via our newsletter and neighborhood email contact group. We also ask ® ❑ ❑ Add additional pages if necessary. ❑ ❑ ❑ ❑ PROGRAM FOR ZWROVING NEIGHBORHOODS • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET UAPIN grant\ FY2013\ fastraccurbpaintingprojectupdated .doc E. Describe the process used to solicit neighborhood input into this funding request and summarize results: Feedback was requested via our newsletter and neighborhood email contact group. We also ask for feedback from those individuals who attend our events to determine future ideas. Add additional pages if necessary. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Yes, the FasTrac students who are typically low income will benefit from the training, experience and relationships that are developed with their neighbors as part of this project. It is proposed that the equipment purchased with.PIN Grants (stencils, brooms, etc.) can be made available to other neighborhoods in the future if they wish to implement a similar program. Add additional pages if necessary. G. Could the project occur without PIN funding? No, there are currently no funds available that we are aware of that would fund this project. It is hoped that once the project gets off and running that we may be able to secure donations for paint supplies to allow for the program to continue from year to year. Add additional pages if necessary. H. Could the project operate with less funding? The number of students who could be participating in this project would need to be cut back if quantities of equipment were reduced. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $996.70 (see $ $ attached) J. Project Materials $ $ $ K. Professional Services $ $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ TOTALS $996.70 $ $ • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET UAPIN grant\ FY2013\ fastraccurbpaintingprojectupdated .doc To;Henry Harper From:Kenny Funk Re;Pin Grant/Curb painting project summer 2012 Date February 28, 2012 Listed is a material and supply list for the use of painting house numbers in the Pepperwood, Grant Wood areas. The material list was obtained from Grainger. /grainger /ch- hanson- stencil -set. This material is an estimate and quantities and re- supplying may have to be added to the total amount for money for the Pin -Grant from the City of Iowa City. 3- Stencil Kits #6A232 $166.00 = $498.00 12- Black spray paint $7.42 = $ 89.02 12 -White spay paint $7.42 = $89.02 6- Lobby Brooms #lCG03 $7.77 = $46.622 6 -Whisk brooms #3H386 $8.19= $49.14 6 -Dust pans #2uey3 $7.81 - $46.86 Supply amount $818.66. RE -stock amount(paint) $178.04 Total Amount for Pin Grant $996.70 Thank You Kenny Funk 337 -4011 April 2012 Re: Curb Painting Project with FasTrac students Dear Neighborhood Council of Iowa City: I am writing to explain the role that the FasTrac students and I will have in the Curb Painting Project seeking to funded through the Program for Improving Neighborhoods by the Grant Wood Neighborhood Association. There are currently over 50students participating in the FasTrac program that are in the 7th through 12th grade age group. This is the age group that we find to be challenging in finding activities that will provide them with some valuable experience as well as help them become better students, workers and neighbors. We want to utilize this curb painting project for the FasTrac students to provide a service to the neighborhood residents and an opportunity to learn a new skill — but more importantly to use this process as an opportunity for them to get to know their neighbors by the interactions that will occur as part of this program. I feel strongly that many of the issues and misconceptions we all have about each other are due to our lack of understanding about who our neighbors are because we don't take the time to get to know them. Ken Funk of the Pepperwood Neighborhood Association has offered his assistance in providing training to our students for this project. The training will include not only how to apply the house numbers to the curb but provide guidance in presenting the project to the resident to encourage their participation. The Grant Wood Neighborhood Association will also be including notification of this project in their newsletter to encourage participation and make neighbors aware that this is a worthwhile project. Thank you. Henri Harper FasTrack Mayor Youth Empowerment Program � r CITY OF IOWA CITY Name of Project: Plantinqs at Brookland Park PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name /Address /Phone Numbers of Contact Per- sons: Jean Walker, 335 Lucon Drive, Iowa City, IA 52246 319/337 -5201 Amount of Funds Requested: LA ' Name of Neighborhood Association: Melrose Neiahborhood Association Location of Proposed Project: Brookland Park, Iowa City Location is: Public property Private property ❑ School District property ❑ Time Period of Proposed Project: From:09/15/12 To:10 /15/12 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. The Association has been very active over the past 12 months, primarily through work done by the Neighborhood Representative (Jean Walker) and the Neighborhood's Executive Committee. In particular, the Association has been continuing its work to preserve the Neighborhood. Attempts were made, by the Neighborhood Rep., to have Irving Weber's house (in our neighborhood) designated a Landmark Building in its own right, on the National Register of Historic Places. Attempts were made to have a sidewalk installed by the new property owner at 402 Myrtle Avenue when he demolished a house and installed a multi - family dwelling there. The Neighborhood Rep. has participated in multiple meetings with UI and City representatives concerning the improvement of football game days and has represented the neighborhood concerning football game day vending on Melrose Avenue at various meetings. The Neighborhood hosted a Party in the Park, September 29, 2011. There was a meeting of the Neighborhood with UI and UIHC officials in August, 2011 re: construction of the new Children's Hospital. A second such meeting occurred in December, 2011 concerning the construction of a parking lot in our Neighborhood. This meeting elicited much correspondence from the Neighborhood (Rep.) to the UI, the State Board of Regents, and the press. Subsequently the Neighborhood Rep. and another neighbor have participated in four UI planning meetings (to date) for the parking lot, which has generated much discussion and two meetings of the Neighborhood Executive Committee. The Neighborhood Rep. attended the Neighborhood Council's December 15, 2011 meeting with Kelly Bender (the Campus - Community Harm Reduction Initiatives Coordinator for UI), and crime prevention police officer Jorey Bailey, to discuss the problem of alcohol abuse /behaviors /crime etc. in the City's C:\ Users\ mbollinger \AppData \Local\Microsoft \Windows \Temporary Intemet Files\ Content. Outlook \DNWWNHKS\MelrosePinAppinl2 03- 22.doc neighborhoods. The Neighborhood Rep. attended a city -wide meeting concerning the next Comprehensive Plan for the City. The Neighborhood Rep. has, this year, attended multiple meetings (to date) to support proposed City measures to stabilise neighborhoods adjacent to the UI. Recently the Neighborhood Rep. has approached the Historic Preservation Commission for assistance in the preservation of the Neighborhood. Currently, a member of the Executive Committee is updating the Neighborhood's database. Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. Groups of daffodil, crocus, and snowdrop bulbs, and Ajuga plants, will be placed at the entrance stone for Brookland Park, in the Melrose Neighborhood. The plantings will beautify the entrance to Brookland Park, which was renovated in 2007, for the enjoyment of neighbors and the general public, whether using the park, walking through it or driving or bike - riding past it. The plantings will highlight the entrance stone (inscribed 'Brookland Park') and make the entrance more welcoming. This project has been approved by Mike Moran, director of the City's Parks and Recreation Department. Steve Ford, landscape architect and Principal at Confluence, generously donated his time and expertise in assisting with the design of the bulbs' and plants' layout. (Steve developed the Masterplan Concept for Brookland Park's major renovation in 2007.) Add additional pages if necessary. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). This project would be completed in the Fall of 2012, probably between the middle of September and the middle of October, weather permitting. It is a one -time project and would not be phased over a number of years. The project involves removing the weeds and other growth in the planting area, digging the soil to loosen it and make the holes for the bulbs, adding bone meal, placing the bulbs, burying them with soil, watering them in, and adding mulch. The Ajuga area will be prepared and the plants planted and watered in. Neighbors will supply tools and labor. The bulb area will be planted with groups of five daffodils, interspersed with groups of crocuses and with snowdrops. Ajuga plants will be in an area to the right of the bulb area. See attached photos for layout design. Add additional pages if necessary. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.Neighborhood members ® ❑ 2.City Parks & Recreation Department will supply mulch ❑ ❑ ❑ ❑ 3. ❑ ❑ ❑ ❑ 4. ❑ ❑ ❑ ❑ 5. ❑ ❑ ❑ ❑ C:\ Users\ mbollinger WppData \Local\Microsoft \Windows \Temporary Internet Files\ Content. Outlook\ DNWWNHK8 \MelrosePinAppin12_03- 22.doc Page 2 PROGRAM FOR IMPROVING NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: This project was proposed to the 11- member Melrose Neighborhood Association's Executive Committee and was endorsed by that Committee. Add additional pages if necessary. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. This project benefits everyone who uses or passes by the park. Add additional pages if necessary. G. Could the project occur without PIN funding? Highly unlikely. The Neighborhood has raised thousands of dollars in the past and is pretty much tapped out. Add additional pages if necessary. H. Could the project operate with less funding? No. The Iowa City Parks and Recreation Department will supply the required mulch. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $264.18 $ $ J. Project Materials $ $ $ K. Professional Services $ $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ TOTALS $264.18 $ $ • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program for Improving Neighborhoods Grant Program does not guarantee any level of funding C:\ Users\mbollinger\AppData\LocalWlicrosoft \Windows \Temporary Internet Files\ Content. Outlook\ DNWWNHK8 \MelrosePinAppinl2_o3- 22.doc Brookland Park PIN Grant Application Budget March 22, 2012 Daffodils, 17 groups of five bulbs @ $1.49 per bulb = 85 bulbs $126.65 Crocuses, 26 groups of five bulbs @ $0.40 per bulb =130 bulbs 52.00 Snowdrops, 100 @ $0.50 per bulb 50.00 Total: $228.65 Less 20% for buying more than 100 bulbs -45.73 Total for discounted bulbs: $182.92 Ajuga, 30 plants @ $10.00 per six -pack = 5 six -packs 50.00 Bonemeal, 2 boxes @ $6.99 per box 13.98 Total for Ajuga and bone meal: $63.98 Total for discounted bulbs. Ajuga and bone meal: $246.90 Tax @ 7 %: 17.28 GRAND TOTAL: $264.18 Prices obtained from Iowa City Landscaping 03/22/12 and said to be valid through Fall 2012. Iowa City Landscaping has large, quality bulbs. Daffodils will be of two colors, yellow and white with yellow - see photos below. Crocuses will be of a variety of colors - see photos below. Snowdrops will be the single (not double) variety. Note: Mulch will be supplied by the Iowa City Parks and Recreation Department. AMENDMENT TO THE MELROSE NEIGHBORHOOD PIN GRANT APPLICATION Since the original Melrose Neighborhood PIN grant application was submitted for consideration, the City has developed plans to improve the planting area by removing the spirea shrubs that tend to obscure the Brookland Park sign (see photo in original application), and replace them with boxwood shrubs that will not take up as much room. This means that there will be a gap between the boxwoods and the bulb plantings. Therefore we would like to amend our application to allow for an extra row of 6 groups of 5 daffodils, an extra row of 7 groups of 5 crocuses and 35 additional snowdrop bulbs scattered amongst the additional daffodil and crocus bulb groups. In addition, in order to discourage weed growth and thus decrease the maintenance of the planted bed, we would like to add a mass planting of a low maintenance perennial in the area to be planted with bulbs. Iowa City Landscaping was consulted about this matter and their recommendation was for 20 plants of Palace Purple Coralbells. Addition of the Coralbells will provide interest in the planting in front of the Brookland Park sign throughout the summer and into the fall, and they will be enjoyed by everyone passing by. In addition, the actual planting of the bulbs and plants will create a time for neighbors to work together and get to know each other better, thus building community. The original budget (see below) has been amended to reflect the changes described above. Brookland Park PIN Grant Application Budget April 23, 2012 Daffodils, 23 groups of five bulbs @ $1.49 per bulb =115 bulbs $171.35 Crocuses, 33 groups of five bulbs @ $0.40 per bulb =165 bulbs 66.00 Snowdrops, 135 @ $0.50 per bulb 67.50 To al: $304.85 Less 20% for buying more than 100 bulbs -60.97 Total for discounted bulbs: $243.88 Ajuga, 30 plants @ $10.00 per six -pack = 5 six -packs 50.00 Palace Purple Coralbells, 20 plants @ $15 each 300.00 Bonemeal, 2 boxes @ $6.99 per box 13.98 Total for Ajuga. Coralbells and bone meal: $363.98 Total for discounted bulbs. Ajuga. Coralbells and bone meal: $607.86 Tax @ 7 %: 42.55 GRAND TOTAL: $650.41 Prices obtained from Iowa City Landscaping 03/22/12 (04/23/12 for the Coralbells) and said to be valid through Fall 2012. Iowa City Landscaping has large, quality bulbs. Daffodils will be of two colors, yellow and white with yellow - see photos below. Crocuses will be of a variety of colors - see photos below. Snowdrops will be the single (not double) variety. Note: Mulch will be supplied by the Iowa City Parks and Recreation Department. Stones represent groups of 5 daffodil bulbs. Red flags represent groups of 5 crocus bulbs. White sticks represent some of the snowdrops — there will be 100 bulbs scattered evenly throughout the bulb area. The blue blanket represents an area of Ajuga plants. Daffodil Crocuses CITY OF IOWA CITY PROCR" FOR I FROV11VG NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association:. North Market Square Park renovation celebration Northside Neighborhood Association Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: North Market Square Park 1. Sarah Clark, 338 -1841 (h), 335 -4146 (w) Location is: Public property Private ❑ 509 Brown Street, IC 52245 property 2. Shari aeGraw, 319 -936 -0021 (c) School District property 519 Brown Street, IC 52245 Amount of Funds Requested: Time Period of Proposed Project: $ 600.00 From:9 /9/12 To :9/9/12 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. Our print newsletter was resurrected after a hiatus of several years (the first issue was sent in February 2012, with another issue planned for this summer); we created a neighborhood survey which was sent along with the Feb. newsletter; we had representatives in attendance at the 2/9/12 Neigborhood Council meeting; our Assoc's next membership meeting will be held in May 2012; numerous emails have been sent over the past 9 months to the NNA list alerting residents to issues affecting the neighborhood as well as more general information such as City Council/School Board election information, City notices, etc.; and we spent hours attending P&Z Commission, Board of Adjustment and City Council meetings advocating on behalf of neighborhood stabilization. Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. Celebrate the long- awaited completion of North Market Square Park; opportunity for the neighborhood to celebrate the renovation of its most important park; a number of Northside residents participated in the planning and design phases, as well as planting the perennial borders, and we want to recognize their efforts. The money we are requesting will hire musicians (New Broom) to perform during the opening. Add additional pages if necessary. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). The event will be held on a weekend afternoon early this fall; the celebration will be thfee (3) hours in length (from 2 :00 -5 :00 p.m.). In addition to live music throughout the entire event (except for a break of approximately 15 minutes), we'll have a short , program, programmed activities for children, and food and non - alcoholic beverages will be served. Macintosh HD:Users: sarahclark: Desktop: NNA PIN grant application 2012 (finat).doc Page 2 PROM" FOR LMPROVJNG NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: We solicited input via our print newsletter and NNA email list Add additional pages if necessary. F. Does this project benefit low-income, elderly, youth or other disadvantaged youth? If yes, please explain. This event is open to everyone in Iowa City Add additional pages if necessary. G. Could the project occur without PIN funding? Yes - see answer in section H. Add additional pages if necessary. H. Could the project operate with less funding? The scale of the event could be reduced if necessary. The NNA will contribute funds and we will approach Northside businesses about donating goods/services. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $ $ $ J. Project Materials $ $ $ K. Professional Services $600 $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ TOTALS $600 $ $ * ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program for improving Neighborhoods Grant Program does not guarantee any level of funding Macintosh HD:Users:.sarahcIark:Desktcp:NNA PIN grant application 2042 (final).doe Add additional pages if necessary. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1 KlainhhnrhnM residents for planning the event set -tap and Z ❑ El Z I clean-up 2,NNA treasury (to purchase food/beverages) ❑ ❑ 3.Northside food establishments will be approached about the ❑ ❑ ❑ ❑ possibility of donating some food items at no cost or low cost 4. ❑ ❑ ❑ ❑ 5. ❑ El ❑ ❑ Macintosh HD:Users:sarahc1ark:Desktop:NNA PIN grant application 2012 (final)-doc Northside Neighborhood Association FY13 PIN grant application (page 4) The NNA was awarded $500 in FY11 PIN funds for a re- opening celebration - the money was not spent because the plan for the park was not final. The FYI funds will be spent to rent tables, folding chairs, and Port -o- potties, as well as to purchase paper goods, and food. Performer: New Broom Contact Person: Marc Janssen The Prairie Fiddle' 922 Bowery Street Iowa City, IA 52240 319.541.2127 Customer: Northside Neighborhood Association Contact Person: Sarah Clark, 319.594.1683 Performance Location: North Market Square Park, Iowa City' Performance Date: Sunday, September 9, 2012 Start Time: 2.00pm End Time: 5 :0Opm Performance Fee: $600 Deposit: NIA Date Issued: Received: Checks Payable To: The Prairie Fiddle 922 Bowery Street Iowa City, IA 52240 Performer Obligations Performance of music park re- opening and dedication. Setup .and break down of personal equipment. PA setup to occur prior to start of wedding ceremony. - Punctual arrival and setup for start time. Customer Obligations - Provide an adequate electric power source. - Prompt payment upon completion of service. Cancellation Agreement - Customer niay not cancel this service contract after 8.9.12. - Performer may not cancel this service contract after 8.9.12. If necessary the Performer will provide substitute recommendations and refund in full the Customer's deposit.: Signed and Agreed:. Customer: 5rwax Date:. Performer: Date: 1 r j CITY OF IOWA CITY PROGRAM FOR IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: Party in the Park Expansion College Green, Melrose, Miller Orchard, Ty'n Cae and Goosetown. Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: College Green, Brookland Park, Benton Hill, Kiwanis Neighborhood Council of Iowa City and Reno Street Park Marcia Bollinger 410 E Washington St. Location is: Public property Iowa City, Iowa 52240 Private property F] School District El 319 - 356 -5237 property Amount of Funds Requested: Time Period of Proposed Project: $ 1500.00 From:7 /1 /12 To:6/30/12 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. All of the above neighborhood associations have had some level of activity over the last year. They have the interest and ability to assist in developing, promoting (yard signs, neighborhood newsletter, email list serves or websites) and implementing a Party in the Park that will occur in their neighborhood park. It will be up to the discretion of the neighborhood to determine the type of event they wish to plan which might include events with musical entertainment, movies on the big screen projector system, "Porch Party ", etc. Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. This project will fund five - Party in the Park events that will be held during Fiscal Year 2013 (July 1, 2012 - June 30, 2013). These parks were not included as part of the regularly scheduled Party in the Park program sponsored by the Park and Recreation Department. This year, funding for the Party in the Park program would only allow for 12 events throughout Iowa City. In order to provide the opportunity for more of these events to occur, the Miller Orchard, College Green, Ty'n Cae, Goosetown and Melrose Neighborhood Associations have agreed to apply for PIN grant funding for these events to occur. Each event is estimated to cost $300 C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). The neighborhood assocaitions will be responsible for securing entertainment and hosting these events as well as promotion of the parties through their standard methods of newsletters, yard signs and electronic media. Although each neighborhood can develop their Party in the Park as they wish, most will expand upon the event by including snacks, activities, pot lucks, etc. UAPIN grant\ FY2013 \partyintheparkgrantappfinal.doex D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1 Miller Orchard College Green Ty'n Cae Goosetown and ® ❑ ❑ PROGRAM FOR ZMPROYING NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: Melrose Neighborhood Associations neighborhood associations for review and approval. Add additional pages if necessary. 2. ❑ ❑ ❑ ❑ 3. ❑ ❑ ❑ ❑ 4. ❑ ❑ ❑ ❑ 5. ❑ ❑ ❑ ❑ PROGRAM FOR ZMPROYING NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: Neighborhood Representatives presented this concept to those interested participants in their neighborhood associations for review and approval. Add additional pages if necessary. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Miller Orchard, College Green, and Melrose Neighborhood Associations are located in the low to moderate income neighborhoods. These events are in public parks and open to the general public as well and many times the participants are young families and retired residents; many of which fit into this income category.; Add additional pages if necessary. G. Could the project occur without PIN funding? There are currently no funding alternatives available to expand the Party in the Park program. Add additional pages if necessary. H. Could the project operate with less funding? The neighborhoods could reduce the scale of their event or some neighborhoods could choose not to participate. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $500.00 $ $ J. Project Materials $ $ $ K. Professional Services $1000.00 $ $ L. Contracted Improvements $ $ $ M. Other Costs(List) $ $ $ TOTALS $1500.00 $ $ UAPIN grant\ FY2013 \partyintheparkgrantappfinal.docx � r ®max, � Z�� L CITY OF IOWA CITY .. IMPROVING NEIGHBORHOODS PIN Grant Program Application Name of Project: Name of Neighborhood Association: Little Free Libraires in the Neighborhoods Miller Orchard, Northside, Grant Wood, Longfellow, Goosetown, Melrose Name /Address /Phone Numbers of Contact Per- Location of Proposed Project: sons: Miller Orchard, Northside, Grant Wood, Longfellow, Neighborhood Council of Iowa City Goosetown, Melrose and other organized Marcia Bollinger neighborhoods as interest occurs. Neighborhood Services Coordinator Location is: Public property 410 E Washington Street Private property Iowa City, Iowa 52240 School District property ❑ Amount of Funds Requested: Time Period of Proposed Project: $_L600.00 From:July 2012 To:June 2013 A. Briefly describe the activities (meetings, newsletters, events, participation in the Neighborhood Council, etc.) of the neighborhood association over the past 12 months. The Neighborhood Council is a group of Neighborhood Representatives that convene as needed to discuss topics of common interest. In the past 12 months the Neighborhood Council met with Kelly Bender who is the University of Iowa's Campus - Community Harm Reduction Initiatives Coordinator to share thoughts about impact to neighborhoods close to campus as it relates to underaged dring and house parties. The Neighborhood Council also reviewd the 2012 PIN grant applications, recommended funding levels and presented recommendations to the City Council. Add additional pages if necessary. B. Describe the project; why is it needed and what are its goals. See attached Add additional pages if necessary. C. General List and Description of Activities with estimated time line: (please indicate if this project will or could be phased over a number of years). Each participating neighborhood association will have the responsibility to determine where the Little Free Libraries will be located, who will "steward" each LFL (involving general oversight to ensure proper maintenance of the structure, diverse supply of reading materials and access) and who will construct the actual "library". All of the neighborhoods listed have had one or more residents committ to either allowing the Little Free Library to be located on their property (between the sidewalk and home) and/ or sponsoring a LFL that will be located on public property. Approval has also been received for any of LFL that will be located on public property (i.e. city parks). It has been requested that LFL NOT be installed between the sidewalk and curb as this can present an increased hazard to drivers if they should jump the curb.) All LFL projects will be constructed, installed, registered with the Little Free Library website (www.littlefreelibrary.org) no later than June 30, 2013. UAPIN grant\ FY2013\ LFLgrantpinapplicationfillinform .doc UAPIN grant\ FY2013\ LFLgrantpinapplicationfillinform .doc Add additional pages if necessary. D. List the names of potential resources (neighborhood and other) that will be utilized in this project: Type Status Volunteer Cash Anticipated Committed 1.Neighborhood hosts of Little Free Libraries ® ❑ ❑ 2.Neighborhood sponsors who attend to the LFL ® ❑ ❑ 3.Recruitment of carpenters to create LFL ® ❑ ❑ ED 4.Installation of LFL ® ® ❑ 5.1owa City UNESCO City of Literature ® ❑ ❑ UAPIN grant\ FY2013\ LFLgrantpinapplicationfillinform .doc Page 2 PROGRAM FOR IAFROWNG NEIGHBORHOODS E. Describe the process used to solicit neighborhood input into this funding request and summarize results: All neighborhood assocations involved have solicited their neighbors for ideas that could be funded with the Program for Improving Neighborhood funds - either through a meeting, newsletter or email distribtuion. Add additional pages if necessary. F. Does this project benefit low- income, elderly, youth or other disadvantaged youth? If yes, please explain. Miller Orchard, Northside, Goosetown and Grant Wood neighborhoods are all located in Low /Moderate Income areas. Longfellow is not. It is expected that a many of the users of the LFL will be young people and retired residents. Add additional pages if necessary. G. Could the project occur without PIN funding? No other funding has been established or is known to be availble for this type of project. Add additional pages if necessary. H. Could the project operate with less funding? Yes - a reduction in the grant amount requested would impact the number of LFL's that are installed in these neighborhoods. Add additional pages if necessary EXPENSE CATEGORY PIN FUNDS OTHER FUNDS LIST SOURCE OF OTHER FUNDS I. Equipment/Supplies $3600.00 $ $See attachment for more budget info. J. Project Materials $ $ $ K. Professional Services $ $ $ L. Contracted Improvements $ $ $* M. Other Costs(List) $ $ $ TOTALS $3600.00 $ $ • ADD ADDITIONAL PAGES TO PROVIDE DETAILS OF BUDGET Please note Submission of an application for funding through the Program forlmproving Neighborhoods Grant Program does not guarantee any level of funding UAPIN grant\ FY2013\ LFLgrantpinapplicationfillinform .doc PIN Grant Application — Section B Little Free Library Mission • To promote literacy and the love of reading by building free book exchanges worldwide. • To build a sense of community as we share skills, creativity and wisdom across generations. • To build more than 2,510 libraries around the world - -more than Andrew Carnegie! History of Little Free Library (From NBC News) Three years ago Todd Bol came up with an idea to remember his mother, a teacher who had loved books and encouraged people to read. At his home in Hudson, Wisc., he built a box, made it waterproof and filled it with books. It looked like a miniature one -room schoolhouse, with a sign underneath that said "Free Book Exchange." Bo/ put it on a post outside of his house and invited neighbors to take a book, and return a book. That's when something happened Bol says he never could have imagined. "People of all ages, men, women, kids came up and just loved the library," he said. "They got excited and they started coming up to me saying, '1'11 build one, do you need books ? "' The idea has mushroomed. Bol now encourages people to visit his website (www.littlefreelibrary.ora) for suggestions on how to build their own library. Today there are Little Free Libraries in at least 40 states and 20 countries including Ghana, Australia and Afghanistan. And people from more than a dozen other countries have expressed interest, Bol said. You can find the little libraries not just in front of homes, but also outside of health centers, coffee shops, bike paths, bus stops and storefronts. People are encouraged to send in a picture of their library so it can be posted on the website. In return they get a "Little Free Library. Take a Book, Return a Book" sign to post on what they've built, as well as a Little Free Library Charter number. Each library is unique. And each one has become more than just a place for getting books and leaving books. Bol said the little libraries have fostered a greater sense of community. "There's a primal need," he said, 'for people to be a part of their community. We have people tell us all the time in seven days of having a Little Free Library I've met more people than I have met in 20 years in my neighborhood." Terri Connolly Crank, who also lives in Madison, said people in the neighborhood who never stopped and talked before are stopping now because of the library that rests on the corner of her property. The library is not just encouraging readers, it's giving neighbors opportunities to get to know each other. Part of the allure of the Little Free Libraries, Bol said, is that you don't need a library card. There are no fees, no fines and no operating hours. The Little Free Libraries are open for business 2417. So any time of day, people can get a book or share a book, hopefully a page turner. Free Little Libraries in Iowa City Iowa City, the United States' first UNESCO City of Literature, was approached by Little Free Libraries (LFL) in the summer of 2011 to partner with them on a project that would encourage the growth of LFL throughout Iowa City. Since that time, UNESCO has entered into a letter of agreement with the founders of LFL that creates that formal partnership between LFL's and the Iowa City UNESCO City of Literature. As part of the agreement, LFL has committed to assisting in funding the standard $25 per library registration fee and develop a plaque that includes the UNESCO City of Literature logo for each library. All LFL's will receive a "charter number" and will be registered on the national LFL website. To assist in reaching out to the Iowa City community and encouraging development and installation of LFL's throughout the city, the Office of Neighborhood Services staff will assist the Iowa City UNESCO staff to provide resources such as: • Step by Step Guide — How to participate in the Free Little Library Program in Iowa City • Recruitment of local carpenters /organizations interested in creating or assisting with the creation of LFL's • Assistance in process to Charter and Register a LFL with freelittlelibrary.org and the UNESCO City of Literature • Development of a local website providing assistance for the LFL program operating in Iowa City • List of Free Book resources for your LFL in Iowa City As part of this assistance, the Office of Neighborhood Services solicited neighborhood associations in Iowa City to consider participating in sponsoring a LFL — with funding for such to be requested as part of the Program for Improving Neighborhoods. The response was overwhelming with 6 neighborhoods immediately securing locations and stewards for one or more LFL in their boundaries. This grant request includes funding for a minimum of 9 LFL's although it is expected, assuming many are constructed of recycling materials by volunteer carpenters, that many more can be produced and installed throughout Iowa City. The highest cost of LFL's who involved those purchased through the LFL website at over $300, registration costs are $25 and installation of the LFL could average $50 —100 as the support posts need to be buried below frost footing (42 ") in Iowa and secured with cement. Although neighborhood associations have identified a variety of resources for materials and carpentry — minimum hard costs would still likely include registration ($25), miscellaneous hardware such as hinges, latches, Plexiglas, post and braces, etc. ($50 -$75). Installation costs would add to that cost. This grant would provide that assistance to neighborhood groups who might otherwise not be able to fund such a project. The Office of Neighborhood Services will also explore opportunities for creating a contact list of retired carpenters, school "shop" classes, Senior Center members that might be willing to construct LFL. The concept of hosting a "Build your own FLF" workshops is being discussed in cooperation with UNESCO. Enabling neighborhood participation in the program through the Program for Improving Neighborhoods fund will provide a valuable hub for neighborhood literacy for years to come. Several neighborhoods, including Miller Orchard (1), Northside (2), Grant Wood (2), Longfellow (2), Goosetown (1) and Melrose (1) have already secured locations for the LFL's as well as stewards who will oversee the upkeep, inventory and general well -being of the libraries. Interest has been expressed by other neighborhood associations in hosting LFL's and participating neighborhoods expect to see additional interest in their areas as LFL's start appearing. The following are photos of LFL's from the LFL website. Prepared by: Marcia Bollinger, Neigh. Services Coord., 410 E. Washington St., Iowa City, IA (319) 356 -5237 RESOLUTION NO. 12-115, RESOLUTION APPROVING DISTRIBUTION OF THE "PROGRAM FOR IMPROVING NEIGHBORHOODS" ( "PIN ") GRANT FUNDS. WHEREAS, the City Council allocated $15,000 for Fiscal Year 2013 for the purpose of funding grants to neighborhood associations so that they could make improvements in their neighborhood; and WHEREAS, the Neighborhood Council, a body representing leaders of the neighborhood associations, has been responsible for: - developing the criteria and format for the grant application, - establishing a method of evaluating the applications, - reviewing and evaluating the applications, - submitting this request to the City Council for their review, and WHEREAS, the Neighborhood Council will be reviewing the progress of the grant activities throughout the year to ensure appropriate expenditure, and WHEREAS, the Neighborhood Services Coordinator will be responsible for ensuring the adequate completion of the projects and authorizing distribution of funds, and WHEREAS, funds for these "Program for Improving Neighborhoods" ( "PIN ") grants are available in the General Fund, account #453100. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The City Council has reviewed the applications and recommendation of the Neighborhood Council for the distribution of funds as outlined in Exhibit A attached hereto and finds the funding of projects shown to be appropriate, so that the commencement of these projects can begin July 1, 2012. 2. The Neighborhood Services Coordinator is authorized to administer the funds by confirming completion of the improvements and approving disbursement of funds. Pass and approved this 19th day of June '2012. MAYOR 7Att by ATTEST: CITftLERK (City eyf ' ' O i f 6-8 1Z ,9,( Resolution No. Page 2 12 -315 It was moved by Mims and seconded by Payne the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims _x Payne x Throgmorton Exhibit A Program for Improving Neighborhoods (PIN) Grant Fiscal Year 2013 Recommendations Amount Recommended GRANT WOOD Workshops $672.59 PTO Dinners 900.00 Fairmeadows Garden 1851.00 Roller Skates 900.00 Roller Skating Staff 3370.00 Curb Numbering 956.00 MELROSE Plantings at Brookland Park 650.41 NORTHSIDE NMS Grant Opening 600.00 PARTIES IN THE PARK College Green, Melrose, Miller Orchard Kiwanis and Goosetown 1500.00 LITTLE FREE LIBRARIES Miller Orchard (1), Northside (2), Grant Wood (2) Longfellow (2), Goosetown (1), Melrose (1) 3600.00 TOTAL $15,000.00 U June 19, 2012 The City Council of the City of Iowa City, State of Iowa, met in regular session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7: 00 o'clock P M., on the above date. There were present Mayor Hayek , in the chair, and the following named Council Members: Champion, Dickens, Dobyns, Hayek, Mims, Payne, Throgmorton Absent: None - 1 - 22 Council Member Mims introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $2,800,000 TAXABLE GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, STATE OF IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF ", and moved that the same be adopted. Council Member Dickens seconded the motion to adopt. The roll was called and the vote was, AYES: Payne, Throgmorton, Champion, Dickens, Dobyns, Hayek, Mims NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: Resolution No. 12 -316 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $2,800,000 TAXABLE GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, STATE OF IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Iowa City, State of Iowa, is in need of funds to carry out a project as hereinafter described; and, it is deemed necessary that the City should issue Taxable General Obligation Urban Renewal Bonds, Series 2012, to the amount of not to exceed $2,800,000, as authorized by Sections 384.24(3)(q) and 403.12, of the Code of Iowa, for the purpose of providing funds to pay costs thereof; and WHEREAS, before bonds may be issued, it is necessary to comply with the procedural requirements of Chapter 3 84 of the City Code of Iowa, and to publish a notice of the proposal to issue such bonds and the right to petition for an election and to receive oral and /or written objections from any resident or property owner of the City to such action; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA: -2- Section 1. That this Council meet in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7: 00 o'clock P M., on the 10th day of July, 2012, for the purpose of taking action on the matter of the issuance of not to exceed $2,800,000 Taxable General Obligation Urban Renewal Bonds, Series 2012, the proceeds of which bonds will be used to provide funds to pay costs of aiding in the planning, undertaking and carrying out of an urban renewal project, including one or more grants to Central Park, L.L.C. totaling $2,500,000. Section 2. That the Clerk is hereby directed to cause at least one publication to be made of a notice of meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in the City. The publication to be not less than ten nor more than twenty clear days before the date of public meeting on the issuance of the bonds. Section 3. The notice of the proposed action to issue bonds shall be in substantially the following form: -3- Publish 6/25 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $2,800,000 TAXABLE GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2012, OF THE CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 10th day of July, 2012, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $2,800,000 Taxable General Obligation Urban Renewal Bonds, Series 2012, of the City, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of an urban renewal project, including one or more grants to Central Park, L.L.C. totaling $2,500,000. At any time before the date of the meeting, a petition, asking that the question of issuing such bonds be submitted to the legal voters of the City, may be filed with the Clerk of the City, in the manner provided by Section 362.4 of the City Code of Iowa. Also, at the above meeting the Council shall receive oral or written objections from any resident or property owner of the City, to the above action. After all objections or petitions asking that the proposition be submitted to an election have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of bonds or will take such other action as it may deem appropriate. This Notice is given by order of the Council of the City of Iowa City, State of Iowa, as provided by Sections 3 84.24(3)(q) and 403.12 of the Code of Iowa. Section 3 84.25 of the City Code of Iowa is applicable to this notice and to the above public hearing. Dated this 25th day of June, 2012. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $2,800,000 TAXAZ GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 12, ()F THE CITY, AND THE HEARING ON THE ISSUANCE THE OF PUB C NOTICE is hereby given that the City Council of the of Iowa City, State of Iowa, 1 hold a public hearing on the 10th day of July, 201 �Aiy at o'clock .M., the Emma J. Harvat Hall, City Hall, 410 E. W shington, Iowa City, Iowa, at which meeti the Council proposes to take additional a ion for the issuance of not to exceed $2,800,00 axable General Obligation Urban R ewal Bonds, Series 2012, of the City, in order t rovide funds to pay costs of ai ' g in the planning, undertaking and carrying out o urban renewal project, i luding one or more grants to Central Park, L.L.C. totaling $2,5 000. At any time before the date of th eeting, a pe tion, asking that the question of issuing such bonds be submitted to the leg voters o e City, may be filed with the Clerk of the City, in the manner provided by ectio 362.4 of the City Code of Iowa. Also, at the above meeting the Council s a eceive oral or written objections from any resident or property owner of the C' , to th above action. After all objections or petitions asking that the proposition be s mitted to \election have been received and considered, the Council will at this eting or at any nment thereof, take additional action for the issuance of bo ds or will take sur action as it may deem appropriate. This Notice is given by or der of the Council of the City of I \pt� , State of Iowa, as provided by Sections 4.24(3)(q) and 403.12 of the Coda. Section 384.25 of the City Code of I a is applicable to this notice and to e public heari ng. Dated this 19th 44y of June, 2012. \ City Clerk, City of Iowa City, State of (End of Notice) PASSED AND APPROVED this 19th day of June, 2012. ATTEST: A4, . City Clerk AA Mayor -5- CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty -four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 21st day of June , 2012. City Nerk, City of Iowa City, State of Iowa (SEAL) W� June 19, 2012 The City Council of the City of Iowa City, State of Iowa, met in regular session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00 o'clock P .M., on the above date. There were present Mayor Hayek , in the chair, and the following named Council Members: Throgmorton Absent: -1- Q6 -19 -12 23 Council Member Dickens introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $3,100,000 TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, STATE OF IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF," and moved that the same be adopted. Council Member Payne seconded the motion to adopt. The roll was called and the vote was, AYES: Throgmorton, Champion, Dickens, Dobyns, Hayek, Mims, Payne NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: Resolution No. 12 -317 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $3,100,000 TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, STATE OF IOWA AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Iowa City, State of Iowa, is in need of funds to carry out the purpose hereinafter described; and, it is deemed necessary and advisable that the City should issue Taxable Urban Renewal Revenue Bonds, Series 2012, to the amount of not to exceed $3,100,000, as authorized by Section 403.9, of the City Code of Iowa, for the purpose of providing funds to pay costs thereof, and WHEREAS, before the bonds may be issued, it is necessary to comply with the provisions of the Code, and to publish a notice of the proposal to issue such bonds and of the time and place of the meeting at which it is proposed to take action for the issuance of the bonds and to receive oral and/or written objections from any resident or property owner of the City to such action; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA: -2- Section 1. That this governing body meet in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00 o'clock p M., on the 10th day of July, 2012, for the purpose of taking action on the matter of the issuance of not to exceed $3,100,000 Taxable Urban Renewal Revenue Bonds, Series 2012, of the City, the proceeds of which bonds will be used to provide funds to pay costs of aiding in the planning, undertaking and carrying out of an urban renewal project, including one or more grants to Central Park, L.L.C. totaling $2,500,000. Section 2. That the Clerk is hereby directed to cause at least one publication to be made of a notice of such meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in the City, such publication to be not less than four clear days nor more than twenty days before the date of the public meeting on the issuance of the bonds. Section 3. The notice of the proposed action to issue the bonds shall be in substantially the following form: -3- Publish 6/25 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $3,100,000 TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Iowa City, State of Iowa, will hold a public hearing on the 10th day of July, 2012, at 7:00 o'clock P.M., in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at which meeting the City Council proposes to take additional action for the issuance of not to exceed $3,100,000 Taxable Urban Renewal Revenue Bonds, Series 2012, of the City. The bonds will not constitute general obligations or be payable in any manner by taxation, but will be payable from and secured by the net revenues of the City- University Project I Urban Renewal Plan, as amended. The bonds are proposed to be issued for the purpose of paying costs of aiding in the planning, undertaking and carrying out of an urban renewal project, including one or more grants to Central Park, L.L.C. totaling $2,500,000. At the above meeting oral or written objections from any resident or property owner of the City to the above action shall be received. After all objections have been received and considered, the Council will at the meeting or at any adjournment thereof, take additional action for the issuance of the bonds or will abandon the proposal to issue the bonds. This notice is given by order of the governing body as provided by Section 403.9 of the City Code of Iowa. Dated this 25th day of June, 2012. Marian K. Karr City Clerk, City of Iowa City, State of Iowa (End of Notice) NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $3,100,000 TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012, OF THE CITY OF IOWA CITY, AND THE HEARING ON THE ISSUANCE THEREOF LIC NOTICE is hereby given that the City Council of the CiZforthe City, State of Iowa, wi o lic hearing on the 10th day of July, 2012, a o'clock M., in the Emma all, City Hall, 410 E. WashinCity, Iowa, at which meeting the City Council pro oses to take additional acti issuance of not to exceed $3,100,000 Taxable 2012, of the City. The bonds will not constitute ge �JLU manner by taxation, but will be payable from and se University Project I Urban Renewal Plan, as amended. issued for the purpose of paying costs of aiding in the 1 out of an urban renewal project, including one or more totaling $2,500,000. Renewal At the above meeting oral or written of owner of the City to the above action shall be received and considered, the Council will at tl take additional action for the issuance of theJ the bonds. obligations ;d by the r$ 7 7u3onds, Series be payable in any revenues of the City- )n 0 are proposed to be , undertaking and carrying to Central Park, L.L.C. pfs from a y resident or property ved. After dkl objections have been eting or at afty adjournment thereof, or will aband n the proposal to issue This notice is given by order o the governing body as of the City Code of Iowa. Dated this 19th day of Xne, 2012. by Section 403.9 City Clerk, City of Iowa City, (End of Notice) to of Iowa PASSED AND APPROVED this 19th day of June, 2012. ATTEST: City Oturfk lla�� n Mayor -5- CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty -four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 21St day of June , 2012. City &rk, City of Iowa City, State of Iowa (SEAL) 00875332 -1 \10714 -113 2 CITY OF IOWA CITY 24 owl MEMORANDUM Date: June 14, 2012 To: City Council From: Thomas M. Markus, City Manager Re: Resolution authorizing an agreement between the City of Iowa City, Kobrin Development Company Inc, formally known as Southgate Development Company Inc, and Crossing Development LC. Wherein the City will subordinate its mortgage to a first lien in order for Crossing Development LC to secure a new development loan. Introduction: Coralville, Iowa City and the developer jointly constructed Camp Cardinal Road. The costs associated with this development were divided between the two cities pursuant to a 28E agreement. The City issued bonds for the roadway improvement. The portion of the bonds attributed to the developer's share of the roadway improvement was subject to reimbursement to the City pursuant to a promissory note agreement dated April 25, 2005. The original note balance was $1,260,909.91 and carried an interest rate of 5.6608% (bond interest rate). The developer, the Crossing Development LC, doing business as Kobrin Development Company Inc. has requested the City to take a subordinated position on our promissory note agreement. The developer wishes to secure additional financing and wants to use the equity in the land encumbered by the City of Iowa City's promissory note agreement. History/Background: The City was approached by the developer and was requested to subordinate the City's promissory note agreement (mortgage) to a first lien. This will allow the developer to service additional financing with which the developer will exercise their option to purchase the remaining land from Clear Creek and to build the needed infrastructure to allow for further private development. The current principle balance due to the City is $977,725.35 with an interest rate of 5.6608 %. When City staff first met to hear their proposal, staff told the developer that the City would need to come to an arrangement that accelerated the payoff of the promissory note and that the remaining value left in the mortgaged property was sufficient to cover the new development loan and the City's subordinated mortgage. In a letter dated May 21, 2012, the developer proposed to 1. Make a $250,000 payment upon their closing of the new development loan. 2. Begin making regular amortized monthly payments of principle and interest, which would result in a final payment being made on 2 -26- 17, which is the end date of the current loan. 3. The developer agreed to make additional payments if they either platted or sold property before the loan end date. In turn, the City would take a subordinate position. June 14, 2012 Page 2 Discussion of Solutions: Once we were confident that the current value of the land supported the two mortgages, we felt that we could reach an agreement. We have made the following modifications to which the developer has agreed to: 1. Increase the payment upon closing from $250,000 to $377,725.35, plus payment of interest due currently estimated at $55,345.86 on June 29, 2012. 2. Upon sale of the final plat of any of the subject property of 5 acres or more, the developer would make additional payments of $4,300 per acre. 3. Evidence provided to the City that shows the proceeds of the new loan will be used to acquire and improve the subject property. 4. These changes and other provisions not altered by negotiations will be summarized in a new note approved by the City Attorney. Financial Impact: The expected impact is that the current promissory note held by the City will be paid off sooner under the revised agreement. The City is confident that the land value is adequate to provide coverage for the new loan and the City's subordinated loan. The primary motivation for considering this arrangement is to have this development improved (shovel ready) for additional development and added to the tax base. It seems to me that this could be viewed as an economic development effort on the part of the City. The final impact should be positive. The added risk under this arrangement may result if there was a substantial decline in value on the property which could put our note at greater risk than what exists under the current scenario. Recommendation: I recommend approval of the proposed agreement between the City of Iowa City and Kobrin Development Inc. and the Crossing Development LC wherein the City will subordinate its current mortgage to a first lien in order for Crossing Development LC to secure a new development loan. d� Prepared by and return to: Eleanor M. Dilkes, Attorney, 410 E.Washington street, Iowa City, IA 52240 (319) 356 -5030 AGREEMENT BETWEEN THE CITY OF IOWA CITY AN KOBRIN DEVELOPMENT COMPANY INC. FORMERLY K OWN AS SOUTHGATE DEV LOPMENT COMPANY, INC. REGARDING THE FINANCING OF THE CAMP CARDINAL RO D CONSTRUCTION COSTS. THIS AGREEMENT ism a by and between the City of Iowa City, Iowa, a municipal corporation, hereinafter referred t as "City ", and Kobrin De lopment Company Inc., formerly known as Southgate Development ompany, Inc., hereinaft referred to as "Developer ". WHEREAS, Coralville, low City and Develop r jointly constructed Camp Cardinal Boulevard from an area south of Cl r Creek in Coralv' a southerly to Melrose Avenue in Iowa City and divided the costs of that con truction in accor ance with a 28E Agreement approved by the City Council by resolution No. 04- 19 (hereinaft "28E Agreement "); and WHEREAS. Clear Creek, L.L. , as the ner of record of a portion of the development property was also a party to said 28E reeme ; and WHEREAS, pursuant to section IV( (3)(b) of said 28E Agreement Iowa City agreed to sell bonds to cover the Developer's s arqf of the costs of construction within Iowa City and Developer agreed to reimburse Iowa CitAfOr all actual costs of Developer's share, as follows: Annua/promissory n the anniv s ry of the bond sale, Developer will pay interest on its share rate of 4° or he interest on the bonds, whichever is greater. The principll be paid ack n a per acre basis within 30 days following adoption by the Counc' of a r solution approving a final plat. The development properhat po ion of th 462 acres of "Clear Creek" land, as identified in the partiesora um of Und rstanding that lies within Iowa City after annexation as conlate in section C f this Agreement, excluding the property owned by Beverlrto The Develo er's promise to pay interest and principal will be set fortpromissory note iven to Iowa City and secured by a mortgage on said dement property. Th mortgage will be partially released as payments of prin are made. The rincipal will be due in full without regard to develot 10 years after final cceptance of the project. The City's mortgage will be r to all other liens. WHERE , pursuant to said 28E Agreeme Developer and Clear Creek, L.L.C. gave a promissory not to the City secured by a first mortga a on the development property within Iowa City, which c sists of approximately 200.59 acres, th said mortgage being recorded in Book 3877, page 19 of the Records of the Johnson County ecorder; and, WHEREAS, the original principal balance on saiq Note was $1,260,909.91 with interest to be paid annually at the rate of 5.6608 %; the current rincipal balance is $977,725.35 with annual interest due as of June 29, 2012 in the amount of $665,346.86; and WHEREAS, in light of the improving economy and the completion of the new Borlaug elementary school the Developer desires increase its investment in The Crossing and to that end has secured a commitme or additional financing to exercise its option to purchase the remaining land from Clear Cr ek and build infrastructure in the City of Iowa City; and, WHEREAS, Devel( Crossing Development LC, October 5, 2007, in Book 4 and WHEREAS, the Devl mortgage to a first lien to s payment of $377,725.35 pl amortized monthly payments February 28, 2017; and, to m of any development land to a - has assigned its interest in the dev lopment property to The reinafter referred to as "Crossing LC" by an Assignment recorded ), pages 711 -715, of the records of the pohnson county Recorder, oper and Crossing LC have ask cure the new development loan, s interest due at the time of nd interest at the rate of 5.660 1 e additional payments of pri ip rd party prior to that date; d WHEREAS, there is su icient equity in the development mortgage and the qty's mortgage; and, IVthat the City subordinate its proposing to make a principal bordination; to make regular with the final payment due on on a per acre basis upon sale ent property to cover the new WHEREAS, the parties de ire to enter int an agreement regarding the terms on which the City will finance the remainin debt owed )6y the Developer in order to enable the new development loan and accelerate thq develop nt of "The Crossing" area of Iowa City. NOW, THEREFORE, IT IS AGREED The Mayor of the City of Iowa will sign and the City Clerk will attest a subordination of the City's mortgage record in ook 3877, Page 419, Records of Johnson County in a form approved by the Ci Atto ney to the mortgage of the new lender to the Crossing LC upon the occ rence o he following: A. A principal p ment in the \fa nt $377,725.35. B. Interest due as of the date bordination paid in full. C. Execubfi of an amendeto by Developer and Crossing LC, in a form approved by the City Attornethe remaining principal balance of $600,000 with intere t at the rate of % amortized over 5 years with the entire balance a in full no later tha ary 28, 2017 and additional payments to be made u n the sale of, or upoal lat approval of a subdivision of more than 5 acre on a per acre basis o00. 0 per acre, and the City will then release its m rtgage as to those acnly. he City will, upon request, release its VDEvidence age as to parcels smallan fi acres without additional payment, so s all obligations under thended ote are current. provided to thtisfactio of the City Manager that the new pment loan enabled b City's s bordination of its mortgage will be exclusively to develop pry within th city limits of the City of Iowa. All terms of said 28E Agreement not inconsistent here h shall remain in full force and effect. 2 Dated this day of KOBRIN DEVELOPMENT COMPANY INC. By: Joseph T. Braverman, Preside THE CROSSING DEVELOPM By: Joseph T. Braverman, Manager 2012 CITY OFAOWA CITY By: /Matthew J. Hayek, Mayor ST: By: Marian K. Karr, City Clerk City Attorneys WOO Prepared by: Eleanor M. Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240, 356 -5030 RESOLUTION NO. 12-3 is CONSIDER A RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST AN AGREEMENT BETWEEN THE CITY OF IOWA CITY AND KOBRIN DEVELOPMENT COMPANY INC., FORMERLY KNOWN AS SOUTHGATE DEVELOPMENT COMPANY, INC., REGARDING THE FINANCING OF THE CAMP CARDINAL ROAD CONSTRUCTION COSTS. WHEREAS, Coralville, Iowa City and Developer jointly constructed Camp Cardinal Boulevard from an area south of Clear Creek in Coralville southerly to Melrose Avenue in Iowa City and divided the costs of that construction in accordance with a 28E Agreement approved by the City Council by resolution No. 04 -319 (hereinafter "28E Agreement "); and WHEREAS. Clear Creek, L.L.C., as the owner of record of a portion of the development property was also a party to said 28E Agreement; and WHEREAS, pursuant to section IV(G)(3)(b) of said 28E Agreement Iowa City agreed to sell bonds to cover the Developer's share of the costs of construction within Iowa City and Developer agreed to reimburse Iowa City for all actual costs of Developer's share, as follows: Annually, on the anniversary of the bond sale, Developer will pay interest on its share at the rate of 4% or the interest on the bonds, whichever is greater. The principal will be paid back on a per acre basis within 30 days following adoption by the City Council of a resolution approving a final plat. The development property is that portion of the 462 acres of "Clear Creek" land, as identified in the parties' Memorandum of Understanding, that lies within Iowa City after annexation as contemplated in section C of this Agreement, excluding the property owned by Beverly Horton. The Developer's promise to pay interest and principal will be set forth in a promissory note given to Iowa City and secured by a mortgage on said development property. The mortgage will be partially released as payments of principal are made. The principal will be due in full without regard to development 10 years after final acceptance of the project. The City's mortgage will be senior to all other liens. WHEREAS, pursuant to said 28E Agreement Developer and Clear Creek, L.L.C. gave a promissory note to the City secured by a first mortgage on the development property within Iowa City, which consists of approximately 200.59 acres, with said mortgage being recorded in Book 3877, page 419 of the Records of the Johnson County Recorder; and, WHEREAS, the original principal balance on said Note was $1,260,909.91 with interest to be paid annually at the rate of 5.6608 %; the current principal balance is $977,725.35 with annual interest due as of June 29, 2012 in the amount of $55,346.86; and Resolution No. 12 -318 Page 2 WHEREAS, in light of the improving economy and the completion of the new Borlaug elementary school the Developer desires to increase its investment in The Crossing and to that end has secured a commitment for additional financing to exercise its option to purchase the remaining land from Clear Creek and build infrastructure in the City of Iowa City; and, WHEREAS, Developer has assigned its interest in the development property to The Crossing Development LC, hereinafter referred to as "Crossing LC" by an Assignment recorded October 5, 2007, in Book 4229, pages 711 -715, of the records of the Johnson county Recorder, and WHEREAS, the Developer and Crossing LC have asked that the City subordinate its mortgage to a first lien to secure the new development loan, proposing to make a principal payment of $377,725.35 plus interest due at the time of subordination; to make regular amortized monthly payments and interest at the rate of 5.6608% with the final payment due on February 28, 2017; and, to make additional payments of principal on a per acre basis upon sale of any development land to a third party prior to that date; and WHEREAS, there is sufficient equity in the development property to cover the new development mortgage and the City's mortgage; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The Agreement attached hereto is in the public interest, and is approved as to form and content. 2. The Mayor is authorized to sign and the City Clerk is authorized to attest the attached Agreement. Passed and approved this 19th day of June , 2012. A�� ^ MAYOR v pRroved by ATTEST: CITY tLERK City Attorney's Office Resolution No. 12 -318 Page 3 It was moved by Dobyns and seconded by Payne the Resolution be adopted, and upon roll call there were: AYES: x x _X_ x x x x NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton Prepared by and return to: Eleanor M. Dilkes, City Attorney, 410 E.Washington Street, Iowa City, IA 52240 (319) 356 -5030 AGREEMENT BETWEEN THE CITY OF IOWA CITY AND KOBRIN DEVELOPMENT COMPANY INC. FORMERLY KNOWN AS SOUTHGATE DEVELOPMENT COMPANY, INC. REGARDING THE FINANCING OF THE CAMP CARDINAL ROAD CONSTRUCTION COSTS. THIS AGREEMENT is made by and between the City of Iowa City, Iowa, a municipal corporation, hereinafter referred to as "City ", and Kobrin Development Company Inc., formerly known as Southgate Development Company, Inc., hereinafter referred to as "Developer ". WHEREAS, Coralville, Iowa City and Developer jointly constructed Camp Cardinal Boulevard from an area south of Clear Creek in Coralville southerly to Melrose Avenue in Iowa City and divided the costs of that construction in accordance with a 28E Agreement approved by the City Council by resolution No. 04 -319 (hereinafter "28E Agreement "); and WHEREAS. Clear Creek, L.L.C., as the owner of record of a portion of the development property was also a party to said 28E Agreement, and WHEREAS, pursuant to section IV(G)(3)(b) of said 28E Agreement Iowa City agreed to sell bonds to cover the Developer's share of the costs of construction within Iowa City and Developer agreed to reimburse Iowa City for all actual costs of Developer's share, as follows: Annually, on the anniversary of the bond sale, Developer will pay interest on its share at the rate of 4% or the interest on the bonds, whichever is greater. The principal will be paid back on a per acre basis within 30- days following adoption by the City Council of a resolution approving a final plat. The development property is that portion of the 462 acres of "Clear Creek" land, as identified in the parties' Memorandum of Understanding that lies within Iowa City after annexation as contemplated in section C of this Agreement, excluding the property owned by Beverly Horton. The Developer's promise to pay interest and principal will be set forth in a promissory note given to Iowa City and secured by a mortgage on said development property. The mortgage will be partially released as payments of principal are made. The principal will be due in full without regard to development 10 years after final acceptance of the project. The City's mortgage will be senior to all other liens. WHEREAS, pursuant to said 28E Agreement Developer and Clear Creek, L.L.C. gave a promissory note to the City secured by a first mortgage on the development property within Iowa City, which consists of approximately 200.59 acres, with said mortgage being recorded in Book 3877, page 419 of the Records of the Johnson County Recorder; and, WHEREAS, the original principal balance on said Note was $1,260,909.91 with interest to be paid annually at the rate of 5.6608 %; the current principal balance is $977,725.35 with annual interest due as of June 29, 2012 in the amount of $55,346.86; and WHEREAS, in light of the improving economy and the completion of the new Borlaug elementary school the Developer desires to increase its investment in The Crossing and to that end has secured a commitment for additional financing to exercise its option to purchase the remaining land from Clear Creek and build infrastructure in the City of Iowa City; and, WHEREAS, Developer has assigned its interest in the development property to The Crossing Development LC, hereinafter referred to as "Crossing LC" by an Assignment recorded October 5, 2007, in Book 4229, pages 711 -715, of the records of the Johnson county Recorder, and WHEREAS, the Developer and Crossing LC have asked that the City subordinate its mortgage to a first lien to secure the new development loan, proposing to make a principal payment of $377,725.35 plus interest due at the time of subordination; to make regular amortized monthly payments and interest at the rate of 5.6608% with the final payment due on February 28, 2017; and, to make additional payments of principal on a per acre basis upon sale of any development land to a third party prior to that date; and WHEREAS, there is sufficient equity in the development property to cover the new development mortgage and the City's mortgage; and, WHEREAS, the parties desire to enter into an agreement regarding the terms on which the City will finance the remaining debt owed by the Developer in order to enable the new development loan and accelerate the development of "The Crossing" area of Iowa City. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: The Mayor of the City of Iowa City will sign and the City Clerk will attest a subordination of the City's mortgage recorded in Book 3877, Page 419, Records of Johnson County in a form approved by the City Attorney to the mortgage of the new lender to the Crossing LC upon the occurrence of the following: A. A principal payment in the amount $377,725.35. B. Interest due as of the date of subordination paid in full. C. Execution of an amended Note by Developer and Crossing LC, in a form approved by the City Attorney, for the remaining principal balance of $600,000 with interest at the rate of 5.6608% amortized over 5 years with the entire balance due in full no later than February 28, 2017 and additional payments to be made upon the sale of, or upon final plat approval of a subdivision of more than 5 acres on a per acre basis of $4,300.00 per acre, and the City will then release its mortgage as to those acres only. The City will, upon request, release its mortgage as to parcels smaller than five acres without additional payment, so long as all obligations under the amended Note are current. D. Evidence provided to the satisfaction of the City Manager that the new development loan enabled by the City's subordination of its mortgage will be used exclusively to develop property within the city limits of the City of Iowa. II. All terms of said 28E Agreement not inconsistent herewith shall remain in full force and effect. 2 Dated this 19 day of �� u.1� , 2012. KOBRIN DEVELOPMENT CITY OF IOWA CITY COMPANY INC. By: It Jo a raverman, President By: Matthew J. Ha Mayor ATTEST: / By: rian K. Karr, City Clerk THE CROSSING DEVELOPMENT LC Bohr!a!v�erm�an, J Manager 25 IOWA CITY PUBLIC LIBRARY 123 S. Linn St. • Iowa City, IA 52240 m cTN Suzan Craig •PNO a 319- 35 &5200•rex 319 - 35&5494• www.icpl.rrg DATE: June 11, 2012 TO: Tom Markus, City Manager FROM: Susan Craig, Library Director RE: Iowa City Public Library Friends Foundation budgeted positions/ June 19, 2012 City Council agenda Since it was established in 1982, the Library Foundation (now known as Iowa City Public Library Friends Foundation), a 501(c)3 non - profit corporation, has contributed millions of dollars in support of the Iowa City Public Library. The Library Development Director works with the Friends Foundation Board of Directors to raise funds, and will soon unveil a campaign to raise matching funds for the building renovation and increase overall private support for Library programs and services. The Friends Foundation has endorsed a new strategic plan that calls for adding a second full -time staff person to the Development Office. As is the case for the Development Director, all personnel costs for the new staff person will be paid from private funds, initially from Foundation reserves, and in the future by new income. The Library has a long history of fundraising through staff working with volunteers. When the non - profit was established, a part-time executive director /fund raiser was hired and, as the Foundation became more successful, that position was gradually increased to full -time. A part-time assistant was later hired. That position eventually became full -time, and was reduced to half -time in 2000 during an economic downturn. The Foundation Board of Directors believes the time is right to increase staffing once again, and is confident that a higher level of fundraising can be maintained in order to support both the new staff and the programs and services of the Iowa City Public Library. The Foundation Board of Directors and I have very seriously considered the Board's request for an additional full -time person. Non - profit organizations often rely on temporary help, or hire outside consultants, both of which have been done in the past. However, fundraising is a highly competitive field, and the expertise and donor relationships that another full -time person can develop will be a wise investment. An average of $140,535 annually has been presented to the Library by the Foundation over the past three years, excluding salary and benefits grants. The additional person will assist with all aspects of development work. The Iowa City Public Library Development Director's job is classified in the Administrative and Confidential Pay Plan at class 10, with a FY13 salary of $73,777. The .5 time office assistant has an annual salary of $22,266. The proposed position is in the AFSCME pay plan, grade 9, with a beginning salary of $40,560. Recommendation: I and the Board of Directors of the Iowa City Public Library Friends Foundation recommend City Council approve the addition of a full -time staff person to the Library Development Office. Library users will benefit from enhanced programs and services at no cost to the taxpayer. Funding for said position will be paid annually to the Iowa City Public Library/City of Iowa City by the Iowa City Public Library Friends Foundation. Vj Prepared by: Adam Bentley, Administrative Assistant to the City Manager, 410 E. Washington St., Iowa City, IA 52240 (319) 356- 5014 RESOLUTION NO. 12 -319 AMENDING THE BUDGETED POSITIONS AT THE IOWA CITY PUBLIC LIBRARY WHEREAS, Resolution No. 11 -67 adopted by the City Council on March 21, 2011 authorized permanent positions in the Iowa City Public Library for FYI 2; and WHEREAS, increased needs for private contributions to support library services and programs requires additional staff; WHEREAS, the Iowa City Public Library Friends Foundation has pledged to fund all salary and benefit costs for this staff person; WHEREAS, said changes will benefit Library users. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA THAT: Effective June 20, 2012 the budgeted positions in the Iowa City Public Library be amended by: 1. The addition of 1.0 Senior Library Assistant, AFSCME grade 9. Passed and approved this 19th day of Approved by }� ATTEST: CITY C-Lr=RK 20-12_ MAYOR City Attorney's Office It was moved by Payne and seconded by nobyns the Resolution be adopted, and upon roll call there were: AYES: ' NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton is Prepared by: Susan Dulek, Asst. City Atty., 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030 RESOLUTION NO. 12 -320 RESOLUTION ESTABLISHING AN AD HOC DIVERSITYCOMMITTEE TO STUDY CITY OPERATIONS AS THEY RELATE TO MINORITY POPULATIONS WHEREAS, the population of Iowa City is becoming increasingly racially diverse; and WHEREAS, on May 15, 2012, City Council passed a resolution of intent to establish an ad hoc committee to study City operations as they relate to minority populations with a view toward promoting just and harmonious interaction between local government and minority segments of the community (Resolution No. 12 -260). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The Ad Hoc Diversity Committee is established. 2. The Diversity Committee shall consist of seven (7) members to be appointed by the City Council. Members of other City boards and commissions may serve on the Diversity Committee. Members must be residents of Iowa City. 3. Applications for membership on the Diversity Committee shall be announced, advertised, and available in the same manner as those for all City boards and commissions. 4. City Council shall select the Chair, who when present will preside over all meetings, and the Vice - Chair, who will serve as chair in absence of the Chair. 5. The City Manager, City Attorney, and City Clerk, or their designees, shall staff the Diversity Committee. 6. The Diversity Committee shall determine the frequency and conduct of its meetings. The meetings will be open to the public in accordance with Chapter 21 of the Iowa Code. 7. The Diversity Committee shall have an organizational meeting no later than September 10, 2012. 8. The charges of the Diversity Committee are as follows: A. To study the operation of the City's transit system, including but not limited to the downtown interchange, as it relates to minority populations with a view toward promoting just and harmonious interaction between City government and minority segments of the community. B. To study the operations of City law enforcement, including but not limited to the Police Citizen Review Board (PCRB), as it relates to minority populations with a view toward promoting just and harmonious interaction between City government and minority segments of the community. Resolution No. 12 -320 Page 2 9. The Diversity Committee shall submit a written report to the City Council by March 10, 2013, that responds to each of the charges listed above and that contains recommendations, if any, with respect to each of the charges. 10. Absent further action by the City Council, the Diversity Committee will dissolve on March 10, 2013. Passed and approved this 19th day of .Tune , 2012. MIJIM," i ►IZ_ : . t1c)-1 6 -13 City Attorney's Office Resolution No. Page 3 12 -320 It was moved by Dobyns and seconded by Payne the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Champion x Dickens x Dobyns x Hayek x Mims x Payne x Throgmorton