HomeMy WebLinkAbout11-19-2012 Council Economic Development CommitteeAGENDA
City Council Economic Development Committee
Monday, November 19, 2012
8:00 a.m.
Helling Conference Room
City Hall
1. Call to Order
2. Consider approval of minutes from October 2, 2012 Economic
Development Committee meeting
3. Consider recommendation to City Council on Tovmcrest. Senior
Housing project
4. Consider recommendation to City Council on renovations to former
Fieldhouse space
5. Staff time
6. Committee time
7. Other business
8. Adjournment
LDC October 2, 2012
MINUTES PRELIMINARY
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
OCTOBER 2, 2012
HELLING CONFERENCE ROOM, 8:00 A.M.
Members Present: Matt Hayek, Susan Mims, Michelle Payne
Staff Present: Adam Bentley, Tracy Hightshoe, Geoff Fruin, Jeff Davidson,
Wendy Ford, Tom Markus
Others Present: Charlie Cowell, Nancy Quellhorst, Pat Shaver, Tracy Hightshoe,
John Kenyon, Kevin Monson, Kent Jehle, Chuck Peters, Amanda
Styron, Vanessa Miller.
RECOMMENDATIONS TO COUNCIL:
Payne made the motion to recommend continued financial support to the City of
Literature. Hayek seconded the motion. The motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Mims at 8:00 A.M.
WELCOME AND INTRODUCTIONS:
Chairperson Mims welcomed everyone and asked that those present introduce
themselves.
CONSIDER APPROVAL OF MINUTES:
Payne stated that there is a typo in the June 5, 2012, minutes. The typo will be corrected
for the approved version.
Hayek moved to approve minutes from the June 5, 2012, and June 12, 2012,
meetings as amended.
Payne seconded the motion.
Motion carried 3-0.
UPDATE ON CREATIVE CORRIDOR EFFORTS — CHUCK PETERS:
Chuck Peters spoke to the Members regarding the Creative Corridor efforts. He stated
that he believes Iowa City is the `unknown jewel' in the region. He talked of the goals of
developing a regional brand and an economic development structure for the region.
Peters stated that he has been amazed at how difficult it has been to get all of the
necessary stakeholders to agree on things as simple as the fact that we are we a region,
that there are boundaries of that region, but what are they, and what should the name
that could further the goals of the region be. The Creative Corridor, which includes the
seven -county area surrounding Johnson and Linn Counties, came out in February, 2012,
along with a 230-plus page report on how to implement a marketing plan around the
brand. Peters continued, stating that a small group helped to put together an
EDC October 2, 2012
implementation plan, but that it has become apparent that they need more participants in
this effort. He shared a handout with Members, showing how they hope to accomplish
this.
Amanda Styron spoke to Members next, giving some background on the Creative
Corridor ideas. She noted that the idea behind the effort is to create a sense of
regionalism and an innovation imperative. Two specific audiences being tapped in this
endeavor are the leadership community and the creative community. By bringing these
two groups together, she believes they can help to move this effort forward.
Peters then asked the group if they had any comments or questions. He added that an
important part of this will be creating an atmosphere of entrepreneurship, inclusiveness,
and diversity, among others. A question was asked of Peters regarding the make-up of
this group, and he clarified who is involved thus far. Kirkwood Community College owns
the intellectual property and the rights to "Creative Corridor." Kirkwood is also acting as
the contracting agent. Sally Mason, University of Iowa President, is also fully on -board
with the concept, according to Peters.
Discussion continued, with those present stating that they believe this endeavor is a
good one, that the more people they can reach with their message, the better. Mims
asked what role the City can play in terms of time and financial backing. She asked if
there is a web site set up and Amanda responded that they have several in the works.
She noted that Cedar Rapids Economic Development is assisting with this, as is
ICCReative.us. The project web site is at creativecorridor.com. Peters added that the
web site corridor202O.com is the site being used to keep people up to date and to
provide access to the many related documents there, as well. Peters further clarified the
collaboration and the various other entities attempting to get these efforts off the ground.
Amanda continued, speaking about two opportunities — the Dream Big contest, which is
a statewide contest that makes awards to people working on the best new big ideas; and
also Think Iowa, which is an innovation and entrepreneurship conference being held in
Des Moines, October 9 — 11. She stated that this conference has been great in the past
and she encouraged people to participate.
UPDATE ON COLLEGE / GILBERT STREET RFP REVIEW PROCESS:
Davidson stated that the RFP for this project closed this past Friday at 5:00 PM. The
City has received ten proposals, according to Davidson. John Yapp is coordinating the
effort and will be setting up an internal review of the proposals this week to help narrow
the field the best options. The best options will then be presented to City Council at a
future work session in advance of their decision on which proposal to select. Davidson
added that they have had numerous requests from the public to see these proposals and
staff is preparing a synopsis of all proposals for the public to see.
REVIEW CONCEPT PLAN FOR SABIN SCHOOL PROPERTY:
Kent Jehle spoke first, giving Members some background on Midwest One Bank. He
stated that the Bank would like to stay in downtown Iowa City, and in working with the
University, they believe the purchase of the Sabin School property will allow them to do
just that. They are currently under contract with the University and have a three-year
purchase option. He detailed the Bank's plans and how they would like to renovate their
EDC October 2, 2012
corporate headquarters at the corner of Clinton and Washington Street, as well. Next
Kevin Monson spoke to the Members, noting that the corner property at Harrison and
Clinton Streets and the Sabin site have both been rezoned to accommodate the banking
use. He stated that the Bank's home mortgage center is temporarily located on the first
floor of the Sabin building, which has allowed the School of Music project to move
forward in the bank's former location at the drive through bank on Clinton St. Once this
project is complete, the goal is to move the home mortgage to the first floor of the new
building. A four-story building will then be needed for the Bank's other departments. He
then shared some of the issues that need to be addressed, such as parking for the
employees that will be moved to the new location. The possibility of a parking structure
was briefly discussed, by Kevin Monson who shared some initial diagrams on how this
might be accomplished. The discussion continued, with Monson stating that they would
like to have some assurance from the City about helping to approve their parking needs,
which may include a parking structure to park the bank employees and those of a
possible private partner. The idea of allowing the possible private partner business to
use the old St. Pat's parish hall on a temporary basis, was also broached. This would be
necessary to assist the business in a near term move before construction of the new
bank building commences and for the duration of the construction.
The discussion then turned to how these requests might be met and what type of
timeframe the Bank is looking at. Mims asked what type of process the City needs to go
through in order to allow an arrangement such as this, and if staff can facilitate this
administratively. Markus stated that it should probably go through the Economic
Development Committee after some initial staff review. Markus added that one of the
benefits of this proposal is that the private sector would be building in users for the end
product. Members briefly discussed the proposal, agreeing that this could really help to
jumpstart the development in this area.
John Kenyon, Executive Director of the City of Literature, spoke with Members next,
thanking the City for their financial support to date. He added that in addition to the
financial help, having City involvement on the Board has also been crucial. He shared
the annual report from the City of Literature, detailing some of the accomplishments thus
far — educational, programming and community building, and tourism. COL has also
collaborated with the University in the Hawkeye Reader Program, where football players
go to area schools to read to students and to help motivate students to study hard.
Another program, the Community Book Talk, showcases leaders in the area who share
books that they enjoy. He continued, sharing some of the upcoming events that COL will
be hosting. Payne asked about a clarification on the budget years, as she did not see
2013 in the listing. Ford replied to this, stating that 2013 has already been funded.
Members agreed that the City of Literature is a very important piece of the Iowa City
fabric.
Payne made the motion to recommend continued financial support to the City of
Literature.
Hayek seconded the motion.
The motion carried 3-0.
LDC October 2, 2012
STAFF TIME:
Davidson briefly spoke about some projects in the area — a 180-room hotel in the works
by Kinseth Hospitality; a possible senior housing project in Towncrest; and a possible
replacement of the Dodge Street Hy-Vee store in the former Robert's Dairy location.
Davidson also spoke about the Moss Development, stating that they have officially
changed the name to Moss Ridge Campus. Markus spoke next, stating that the energy
level has increased within the development community and that there are several things
coming together now. Mims voiced her appreciation for staffs' hard work in all of these
projects.
COMMITTEE TIME:
Hayek briefly spoke about how the rebounding economy is helping to spur development
locally, as is the hard work of staff.
OTHER BUSINESS:
None.
ADJOURNMENT:
Hayek moved to adjourn the meeting at 9:12 A.M.
Payne seconded the motion.
Motion carried 3-0.
EDC October 2, 2012
Council Economic Development Committee
ATTENDANCE RECORD
2012
TERM
s
N
w
w
p
�
M
NAME
EXP.
s
N
3
N
o
-I
W
W
O
O
N
N
Michelle
01/02/14
X
X
X
X
X
X
X
X
Payne
Matt
01/02/13
X
X
X
O/
X
X
X
X
Hayek
E
Susan
01/02/13
X
X
X
X
X
X
X
X
Mims
Key:
X = Present
O = Absent
O/E = Absent/Excused
r
r_,--..@; CITY OF IOWA CITY
.. '� � MEMORANDUM
Date: November 15, 2012
To: City Council Economic Development Committee
From: Tracy Hightshoe, Community Development Planner
Re: Request for Financial Assistance — 3 Diamond Development
The City received a request for financial assistance from 3 Diamond Development to acquire
1030-1070 William St. to demolish and construct a 41-unit senior development (aged 62 and
older). The developer will apply for Low Income Housing Tax Credits (LIHTC) from the Iowa
Finance Authority for this project. The developer's application for City funds is attached for your
review.
The National Development Council reviewed the budget and operating proforma for this project.
Their recommendation will be sent to the City on Friday, November 16 and will be emailed to
the committee on Friday. Due to the financing gap present, the developer is requesting City
assistance in the form of a $375,000 general obligation bond and $300,000 in Towncrest gap
financing funds. The developer will submit a CDBG/HOME application for $350,000 in January
as well.
This project meets the goals of the Towncrest Urban Renewal Area by addressing the
deterioration of existing commercial properties and encouraging revitalization of commercial and
residential activities in the Towncrest neighborhood. The new three-story residential property for
seniors will comply with the Towncrest Design Standards.
The $300,000 in Towncrest gap financing will come from the Towncrest Catalyst - Capital
Improvement Plan and the $375,000 will be financed through a General Obligation Bond in the
FY14 Capital Improvement Plan.
Staff recommends the proposed financing outlined in their request and request the Economic
Development Committee to forward a recommendation to the City Council for their November
27, 2012 meeting. The deadline to apply for LIHTC funds is December 10, 2012.
November 15, 2012
Tracey H ightshoe
City of Iowa City
410 E. Washington St.
Iowa City, IA 52240
Ms. Hightshoe —
The purpose of this correspondence is to respectfully request capital funds from the City of Iowa City for
the construction of Diamond Senior Apartments. The proposed project is a forty-one (41) unit new
construction development for seniors aged 62 and older. All forty-one units will be affordable to seniors
whose respective income is at or below 60%AMI, which means the development will be affordable to
seniors who have an annual income of $38,580 for a two -person household.
This request is in conjunction with our application to the Iowa Finance Authority ("IFA") for an allocation
of Low income Housing Tax Credits. Because of IFA's respective underwriting guidelines, our project
faces a financing gap. In order to construct a feasible development budget which addresses said gap,
3DD is seeking $300,000 from the Towncrest Incentive Funds along with $375,000 from proposed
General Obligation Bond proceeds issued by Iowa City. Terms of the bonds follow a twenty (20) year
term at an interest rate of 2.5%.
We have been working diligently with Iowa City and appreciate the assistance you have provided
throughoutthis planning process. Please feel free to call or email me with any questions regarding this
arrangement. I appreciate your time and look forward to working with your group.
Sincerely,
Ben Porush
Director of Operations-3 Diamond Development
2. Project Narrative
Diamond Senior Apartments of Iowa City
Location Map: Site is located at 1030-1070 William Street in Iowa City
Contact Information:
Developer: 3 Diamond Development
7444 Long Ave
Skokie, IL 60077
Ben Porush
947.677.7206
bporush@3diamonddevelopment.com
Consultant: Lighten Gale Group
39 S. LaSalle Street #808
Chicago, IL 60603
Maggy Tinucci
312.920.1500 X 107
mtinucciPhousinadeveloper.com
2. Project Narrative
Diamond Senior Apartments of Iowa City
Property Description:
Site: Existing medical/commercial offices (to be demolished)
1.36 acres; 59,242 square feet
Building Area: 45,033 square feet
Target Population: Independent Elderly, 62 and older
Building Description
Construction Type:
New construction
Number of units:
41
ADA Accessible units:
31
Common Area Amenities:
Fitness Room
Multi -purpose room
Lounge
Community garden
Library
Diamond Senior Apartments of Iowa City is a forty-one (41) unit new construction senior development
(aged 62 and older) to be located at the intersection of Towncrest Drive and William Street. The existing
building (1030 — 1070 William Street) will be demolished to make way for the new development. The
project will consist of twenty (20) one -bedroom units and twenty-one (21) two -bedroom units. Units
will be affordable to individuals between 40%AMI and 60% AMI, which means units will be affordable to
seniors with annual incomes between $13,200 and $38,580. Ten (10) units will be affordable to
households at or below 40% AMI and the remaining thirty-one (31) units will be affordable to
households at or below 60% AMI. Thirty-one (31) units will be ADA accessible. There will also be forty-
one (41) parking spaces in a surface lot.
Diamond Senior Apartments is being designed specifically for the aging population and the building
design allows for an abundance of social space. The building's design includes the main lobby, a multi-
purpose room with a TV, a community garden, a library, an exercise room with equipment appropriate
for the 55 and over population and the property management office. The building will also offer storage
lockers and a trash/recycling room. At least seventy-five percent (75%) of the building will be fully
accessible for those with physical disabilities and it will also institute a no -smoking policy.
Units will have wireless internet and will be cable ready. All bedrooms and living rooms will have wall-
to-wall carpet. Bathrooms and kitchens will have vinyl flooring. Appliances will include
refrigerator/freezer, dishwasher, microwave, electric range/oven, fan/hood/light, and a stainless steel
sink. All units will have an in -unit washer and dryer. Windows will have mini -blinds and kitchens will
include wood cabinets and plastic laminate counters. The building will include automatic fire sprinklers,
a fire alarm and smoke detectors. With regards to the interior paints, primers, adhesives, caulks and
water heaters, the building will incorporate a variety of environmentally friendly products and features.
Further, the building will also abide by strict green and energy efficiency standards, including a Home
Energy Rating Systems (HERs) rating of 68 or less.
The proposed site is well -suited for senior housing. Within one mile is a variety of amenities which are
essential to maintaining a senior's quality of life. These amenities include a Hy-Vee and United Natural
Foods grocery store, Elder Services Inc. Senior Center, four medical service locations and a Walgreens
Pharmacy.
2. Project Narrative
Diamond Senior Apartments of Iowa City
3 Diamond is working with the City of Iowa City for assistance with funds to acquire the site. They will
be applying for Low Income Housing Tax Credit from the Iowa Finance Authority (IFA) in December
2012. IFA LIHTC awards will be announced in March and construction is anticipated to begin in
November 2013.
General Information:
Affordability: Units are anticipated to be restricted as follows:
Type of Unit
Average Size
1BR
2BR
Total Units
40%AMI
652sf
5
5
10
60%AMI
873 sf
15
16
31
TOTAL:
20
21
41
Proposed Rents: IFA will order a complete market study as part of the LIHTC review process. 3DD
engaged a market analyst to survey area rents and is estimating the following rents. When the final IFA
market study is completed, rents may be modified, howeverthe current estimated rents at all income
levels are as follows:
Utility Allowance*
40%AMI**
60%AMI
1 BR
66
370
600
2 BR
88
370
680
*This utility allowance assumes tenants pay heating (g), air conditioning, cooking (e) and other
electricity. The owner pays water, sewer and hot water.
**Units reserved at 40%AMI may be utilized by the Iowa City Housing Authority. Under this scenario,
residents would pay 30% of their respective income.
Proposed Uses:
The project will be used exclusively as senior housing for seniors 62 and older.
Construction:
This building will be new construction.
Parking:
The development includes 41 surface spaces in a surface parking lot adjacent to the building. Please
note this meets the respective 1:1 ratio zoning requirement.
Neighborhood Description & Site Selection:
3 Diamond Development (3DD) has worked in conjunction with the City of Iowa City to identify the
proposed site. In 2010, Iowa City published a Master Plan for the Towncrest Area. Throughout the plan,
Iowa City makes it clear that its primary objective is to re-establish Towncrest as a neighborhood
epicenter through the reimaging of its physical character and reinvestment of its infrastructure. This will
help to create of point of focus and renewed interest for business development within Iowa City. The
overall vision centers on a vibrant and connected combination of residential and commercial.
2. Project Narrative
Diamond Senior Apartments of Iowa City
Through the planning process, Iowa City has specifically identified the proposed site for senior housing.
3DD is thrilled to be catalyst for the overall redevelopment of the area. The architecture and design of
the building will meet all the design guidelines which are highlighted in the Master Plan.
Accordingly, 3DD and Platinum Healthcare's extensive experience has taught them that senior living
developments thrive in areas which have instant access to the immediate community. Diamond Senior
Apartments is within extremely close proximity to amenities vital to the senior population. In particular,
grocery stores, pharmacies, senior centers and medical services are all located within one -mile of the
project's proposed site. Please refer to the chart below which highlights specific amenities and their
respective distance from the site:
Senior Oriented Amenities Within Close Proximity to Proposed Site
Amenity
Name
Address
Cit
Distance (Mi)
Grocery Store
Hy-Vee
812 South lst Avenue
Iowa City
0.2
Grocery Store
United Natural Foods
2340 Heinz Road
Iowa City
1
Senior Center
Home Instead Senior Care
1700 South 1st Ave#28
Iowa City
0.6
Senior Center
Elder Services Inc
1556 South lst Ave
Iowa City
0.5
Senior Center
City of Iowa City Senior Center
28 South Linn Street
Iowa City
1.9
Medical Services
Caring Hands and More
1556 South 1st Ave
Iowa City
0.5
Medical Services
Free Medical Clinic
2440 Towncrest Drive
Iowa City
0.1
Medical Services
Heartland Healthcare Associates, P.C.
1700 South 1st Ave
Iowa City
0.6
Medical Services
Ul Family Care Southeast
1130 South Scott Blvd
Iowa City
0.8
Pharmacy
Walgreens
2214 Muscatine Ave
Iowa City
0.3
Pharmacy
Towncrest Pharmacy
2306 Muscatine Ave
Iowa City
0.2
The development team feels it is vital to target neighborhoods which allow seniors to engage with the
community as a whole. Additionally, the proposed site is located adjacent to the Towncrest Urban
Renewal Area, and the development team has ensured that the project complements the plan's
respective goals. Please refer to the map below which highlights the site's location within Towncrest
Urban Renewal Area Plan:
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C t tom'
Proposed Site
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2. Project Narrative
Diamond Senior Apartments of Iowa City
Need for Proposed Activity:
In addition to the feedback 3DD has received from local officials regarding a distinct need for affordable
senior housing, 3DD has also utilized the Iowa City Metro Area Affordable Housing Market Analysis
(dated 2012). In the study, the City of Iowa City, in collaboration with Coralville, North Liberty, Tiffin and
University Heights, analyzed the forecasted state of affordable housing. The study concluded that the
total affordable housing demand was at approximately 5,450 units whereas the corresponding supply
was only 2,711 units, marking a distinct need. The team employed to perform the study recommended
to target "potential redevelopment areas in Iowa City that present opportunities for new affordable
housing and neighborhood revitalization" and to "dedicate specific sources of revenue to finance
affordable housing development over the long term."
3DD's proposed development accomplishes these objectives by demolishing an older building and
replacing it with a high quality, environmentally -friendly and aesthetically pleasing apartment building
which is affordable to the area's seniors. Towncrest had been pinpointed by the City as an area in need
of redevelopment and the proposed site has been identified specifically for senior housing. Therefore,
the project will also aid the City in carrying out its long term goals of revitalizing the immediate vicinity
surrounding the site and providing affordable rental housing for seniors.
The development team is also reviewing the data reported in the 2012 Iowa Housing Study, which is in
draft form and was commissioned by the Iowa Finance Authority. The study noted the drastic increase
among the state's senior population, which grew by over 45% during the last decade. At the same time,
the decade experienced a drop in household wealth along with an increased cost of living. With regards
to the current housing stock, 25% is now older than 70 years old, suggesting increased maintenance and
operating costs. Accordingly, these combined factors signify a clear need for additional affordable
housing units within the state, especially for the senior population. The proposed project aims to assist
Johnson County to meet this need. The building will be made affordable to a growing senior population
which has been proven to be in need of quality housing options. In addition to affordability, the building
will also provide direct access to a multitude of community services, allowing the residents to interact
with the area as a whole.
4. Description of Development Team
Diamond Senior Apartments of Iowa City
Development Team Experience
The owner has assembled an experienced development team. Each team member has vast LIHTC
experience, and brings unique knowledge to the project. The team members are as follows:
Developer: 3 Diamond Development
3DD and its parent company Platinum Health Care have extensive in the senior housing market,
including affordable senior housing, nursing homes and supportive living facilities throughout Illinois,
Iowa, Missouri, Wisconsin, Indiana and Ohio. Overall, Platinum Health Care owns and manages more
than 3,100 skilled beds in 27 nursing homes and one supportive living facility. 3DD is the owner of three
Low Income Housing Tax Credit senior affordable housing projects, as described below:
Wrightwood Senior Apartments (89 units), 2815 W. 79th Street, Chicago, Illinois: Wrightwood
Senior Apartments was awarded LIHTCs from IHDA in 2008, closing on financing and began
construction in August 2009. The project finished two months ahead of schedule and reached
100%occupancy by December 2010. The building is currently 100% occupied with no vacancy.
Diamond Senior Apartments at Wingate Drive (61 units), 1401 Wingate Road, Dubuque, Iowa:
This project was awarded LIHTCs from the Iowa Finance Authority in June 2010, and closed on
financing in December 2010. The building is 100%occupied with no vacancy.
Diamond Senior Apartments of Oswego (60 units), 3350 White Oak Drive, Oswego, Illinois: This
project was awarded LIHTCs in October 2010, and closed on financing and began construction in
June 2011. Construction completed two months ahead of schedule, and the building is
exceeding its lease -up projections.
General Contractor:
Portzen Construction
Mike Portzen, Principal
205 Stone Valley Drive, Dubuque, IA, 52003
563.557.7642
rnpoLtzen@pci-(Ybg.com
Mike Portzen Construction began in 1983 with several housing rehab projects that were conversions
from older obsolete buildings. Mike Portzen Construction was incorporated in May of 1989, changing
the name to Portzen Construction, Inc. The company has since developed into a multi -faceted
organization, including complete excavation services for underground utilities, water service, storm and
waste water piping, street repairs, and building foundations; concrete services for roads, streetscapes,
parking lots and street paving, building foundations and structural concrete; carpentry services for
residential, commercial and industrial structures including framing, finishing, cabinetry, siding and
roofing; plumbing services for residential, commercial, and industrial projects including process piping
for water treatment, waste water treatment plants and aquatic facilities for moderate size cities.
Portzen is currently working on a $5.5 million dollar high school addition and renovation at City High in
Iowa City.
Portzen Construction, Inc. calls upon construction experience from hundreds of projects in the tri-state
area. In addition to the construction disciplines noted above, Portzen Construction, Inc has accumulated
experience in land development and is currently developing property along Dubuque's US 20 Corridor.
4. Description of Development Team
Diamond Senior Apartments of Iowa City
Mike Portzen's extensive mathematical ability along with his enthusiastic, energetic drive for excellence
has contributed to his success as a respected businessman in the community. Mike takes great pride in
projects completed on schedule and within target budgets. Portzen was also the contractor for 3DD's
project in Dubuque.
Architect:
Behles & Behles
Ken Behles, Principal
818 Church Street, Evanston, IL 60201
847.864,0440
kenb@behlesbehles.com
BEHLES+BEHLES, a professional design partnership, provides design services in the fields of architecture,
planning and interior design. The firm was organized in 1984 by the two founding principals, Kenneth L.
Behles, AIA and Joseph J. Behles, AIA. B+B is a design -oriented firm, dedicated to serving a diverse
group of commercial, institutional and residential clients. B+B's professional staff of twelve has a wide
range of project experience and creative talent and their collaborative approach to design takes
advantage of individual skills while working toward collective goals. The design team includes B+B in-
house staff and outside engineering/technology consultants. Each member is selected for his ability to
contribute individual expertise within a common set of objectives. B+B has worked with the developer
on the interior design of Wrightwood Senior Apartments, and is the architect of record for 3DD's
Oswego and Dubuque projects.
Property Manager:
Paramark Corp.
Dan Cogdill
1212 West 3rd Street, Davenport, IA 52802
319.415.7610
dcoqdi11@varamark.us
Paramark Real Estate Services provides a wide range of Residential Property Management services,
customized to meet the unique needs of each of their. Their integrated team -based approach
facilitates effective and timely communication between all parties, from tenants to property managers,
vendors to facility technicians, accountants to our most important point of contact —clients. Paramark
provides the following comprehensive list of services in support of our Residential Property
Management portfolio:
• Experienced, educated and motivated Property Manager assigned to each unique asset
performing fundamental management services
• Occupancy & Leasing Management
• Facility Operation & Maintenance Services
• Tenant, Vendor and Subcontractor Relations
• Operating Budget Development & Management
• Rent Collection & Property Inspections
• Market & Rent Analysis
• Facilitate Third -Party Legal & Accounting Services
• Comprehensive Account Management based on specialized client needs
4. Description of Development Team
Diamond Senior Apartments of Iowa City
• Customized Financial and Accounting Services
• Detailed reporting developed specificallyfor each unique facility, including:
• Monthly Financial & Operating Reports
• Property Inspection Reports
• Leasing Activity & Occupancy Reports
The Paramark team has a wealth of experience and provides residential management services for
Conventional Apartment Complexes and Communities, Section 8, Section 42 & Section 236 Apartment
Facilities, Residential Associations (Townhomes and/or Condominiums) and Cooperative Housing.
Paramark also serves as property managerfor Diamond Senior Apartments of Wingate Drive.
Financial Consultant:
Lighten -Gale Group
M aggy Ti n u cci
39 S. LaSalle Street, #808, Chicago, IL 60601
312.920.1500 X 107
mtinucci@housingdevelouer.com
Lighten -Gale Group (LGG), a consulting firm in business since 1999, has extensive experience in
coordinating financing and project management services related to the development of affordable,
market rate and mixed income housing. LGG specializes in multi -family affordable housing but also
coordinates other creatively financed projects. LGG is coordinating all of the private and public financing
for this project. LGG has served as the financial consultant in all of 3DD's senior affordable housing
developments.
5. Evidence of Site Control
Diamond Senior Apartments of Iowa City
Please note that site control is still in the process of being negotiated with the current owner. However,
site control is a mandatory requirement for IPA's LIHTC application which must be submitted by
December 10, 2012.
6. Process Description
Diamond Senior Apartments of Iowa City
Zoning
Please note the project's respective zoning change is currently underway. 3DD has requested the
rezoning of the proposed site from Commercial Office (ODR-CO-1) to Medium -Density Multi -Family
Residential (ODR-RM-20). The following milestones have been achieved or are anticipated in the very
near future:
10/4/2012: Project was presented to Iowa City's Planning & Zoning Board
11/13/2012: First of required three readings of the zoning change proposal made by the Board
11/27/2012: Second of required three readings made
12/6/2012: Last reading made by Board;
Anticipated formal recognition and adoption of project's zoning change
Environmental Issues
A Phase I Environmental Report has not yet been ordered for the proposed site. However, the
development team does not anticipate any environmental issues to arise during the course of
acquisition, demolition and construction.
Utilities
All utilities and related infrastructure is currently on site. No extensions or additional infrastructure is
required in the scope of work.
Regulatory
The project will be applying for an allocation of Low Income Housing Tax Credits from the Iowa Finance
Authority ("IFA"). Accordingly, all of the forty-one (41) units will be affordable to seniors whose annual
income is at or below 60% AM I. There are also various regulatory requirements the project must abide
by, including the following:
• At least seventy-five percent (75%) of the building, or 31 units, will be fully accessible forthose
with physical disabilities
• Forty-one (41) parking spaces in a surface lot
• The building will institute a no -smoking policy
• The building will abide by strict green and energy efficiency standards, including a Home Energy
Rating Systems (HERs) rating of 68 or less
• Twenty-five percent (25%) of the total project units will be eligible to receive supportive services
tailored to the senior population
Architectural Timeline
The architect, Behles & Behles, has partnered with 3DD on Diamond Senior Apartments of Dubuque,
located in Dubuque, Iowa. Dubuque was also a development financed through Low Income Housing Tax
Credits. Preliminary design plans will be submitted as required with the IFA application on December
10, 2012, If awarded an allocation, final design plans are anticipated to be completed in July 2013.
Construction
The projected start date for construction is anticipated for November 2013 and scheduled to be
completed in August 2014,
10, Description of Target Market & Resident Profile
Diamond Senior Apartments of Iowa City
Target Market
3DD has utilized the Iowa City Metro Area Affordable Housing Market Analysis (dated 2012) to assist in
determining the anticipated target market area. In this respective study, the City of Iowa City, in
collaboration with Coralville, North Liberty, Tiffin and University Heights, analyzed the forecasted state
of affordable housing. The study concluded that the total affordable housing demand was at
approximately 5,4S0 units whereas the corresponding supply was only 2,711 units, marking a distinct
need. It is anticipated that residents will primarily derive from these areas.
Accordingly, the proposed site is well -suited for senior housing. Within one mile is a variety of amenities
which are essential to maintaining a senior's quality of life. These amenities include a Hy-Vee and
United Natural Foods grocery store, Elder Services Inc. Senior Center, four medical service locations and
a Walgreens Pharmacy.
Because this project is currently in the planning phase and has yet to have been awarded an allocation
of LIHTCs, there are currently no existing committed leases. However, based on the market analysis by
the development team, lease -up is estimated to take approximately six (6) months, with occupancy
beginning August 2014 and full occupancy achieved February 201S.
Resident Profile
Diamond Senior Apartments of Iowa City is intended to provide an affordable housing alternative to
seniors aged 62 and older. The project will consist of twenty (20) one -bedroom units and twenty-one
(21) two -bedroom units and will be affordable to individuals between 40%AMI and 60%AMI, which
means units will be affordable to seniors with annual incomes between $13,200 and $38,580. Ten (10)
units will be affordable to households at or below 40% AMI and the remaining thirty-one (31) units will
be affordable to households at or below 60%AMI.
The development will also provide thirty-one (31) ADA accessible units. Further, twenty-five percent
(25%) of the total project units will be eligible to receive supportive services tailored to the senior
population.
11. Preliminary Schedule
Project Development Timeline - Iowa City
ACQUISTION
Site Control
Site Acquisition
ARCHITECTURAL
Preliminary site plan and elevation
Preliminary design plans
Final design plans completed/Submitfor permits
ZONING & PLANNING
Zoning Meeting
Planning & Zoning Introduction
City Council (1st Reading)
City Council (2nd Reading)
City Council (3rd Reading & Adoption)
FINANCING
LIHTC
First Mortgage/Equity Bridge Loan
Johnson County Trust Fund
City of Iowa City Funding (Anticipated)
CONSTRUCTION
Construction cost finalized
Projected construction start date
Construction completion
LEASE -UP
Final tenant selection plan
Begin marketing activities/tenant screening
Occupancy begins
Full occupancy achieved
November 2012
November 2013
9/19/2012
12/10/2012
7/1/2013
10/4/2012
10/4/2012
11/13/2012
11/27/2012
12/6/2012
IFA Application Submission 12/10/2012
Project awarded LIHTC allocation March 2013
LIHTC Equity L01 May 2013
Closing November 2013
Bank 101 September 2012
Firm Commitment September 2013
Loan Closing November 2013
Trust Fund Application Due 9/20/2012
Distribution Committee Meeting 10/20/2012
Funding Agreement 11/9/2012
Draw down of funds November 2013
Submit funding request September 2012
City Council approval December 2012
Closing on Grant/Loan Funds November 2013
August 2013
November 2013
August 2014
November 2013
April 2014
August 2014
February 2015
r
r~P CITY OF IOWA CITY
M E M O RAN D U M
Date: November 15, 2012
To: Economic Development Committee
From: Wendy Ford, Economic Development Coordinator
Steve Long, Community Development Coordinator
Re: Request for Financial Assistance — Fieldhouse Investments, LLC
The City received a request from Fieldhouse Investments to redevelop their downtown property at 111 and 113 E.
College Street from a bar to Class A retail or office space.
The property has a total of 18,000 square feet which includes 6,000 square feet on three floors. The first two floors
will require extensive rehabilitation because the space was used for many years as a bar. The top floor will require
minor rehabilitation because of previous office tenants.
The rehabilitation will include demolition, new HVAC, new electrical and plumbing, upgrade of sprinkler and fire alarm
system and the installation of an elevator to service the entire building.
The total project cost is $2,550,730, including the cost of rehabilitation and initial acquisition. Fieldhouse Investments
is requesting assistance in the amount of $800,728 to cover the cost of rehabilitating the space. The National
Development Council (NDC) reviewed the proforma, project scope and the sources and uses and determined a
financing gap of $500,000.
It is proposed to finance the rehabilitation and conversion through a TIF project. The City Assessor has estimated
that with the proposed improvements, the building's taxable value will increase from $1,006,960 to $1,850,000 which
will generate approximately $33,300 in additional annual property taxes. Because of the protected levy, the tax
increment to finance this project will be $26,850 annually. NDC determined a gap of $500,000; however, because of
the length of the 18.6 year payback period it was decided that $400,000 would be more appropriate. This new
increment of $26,850 will be used to finance repayment of our $400,000 investment over a period of 14.9 years. The
existing property taxes, plus a portion of the increased property taxes, will continue to be paid to the City, County and
School District.
At the present time Fieldhouse Investments is legally able to establish a bar on the property. They have agreed not
to establish a bar on the property in exchange for the City's grant of $400,000 to rehabilitate and fit -out the space for
retail and office uses. If Fieldhouse Investments or its successor choose to locate a bar in one of the spaces, they
are required to repay the $400,000 on a pro rata basis over the 14.9 year repayment period. At the end of the 14.9
year period the property may be used for any use allowed under the Iowa City Zoning Code.
If the building is converted to a non -bar use, it will not be allowed to be converted back to bar use again by virtue of
the 500-ft spacing provision which was amended in to the Zoning Code. The conversion of this space from a bar to a
Class A office space and retail space is exactly what we are trying to promote downtown.
We will be available at the November 19 EDC meeting to answer any questions. You are being asked to provide a
recommendation on this matter to the full City Council. If recommended for approval, the City Council will consider
the formal development agreement at their meeting in December or January.
Cc: Brad Houser
Tom Markus
Jeff Davidson
327 2" Street
Suite 200
Coralville, IA 52241
l o: Cit} of Iowa City. 4 10 E. A\ ashington Street. Iowa City. to 52140
Attention: Jeff Davidson. Aycri(h I-ord, Steve Long
From: Fieldhouse Investment, C;O Brad Itouser, Ndembcr
Date: November I�, 301?
Dear Jeff, Wendy and Sicve:
Based upon prior discussion between the Cite representation and I icldhouse Investments, we have many clients
which have interest in leaMoLl otu I I I and 113 E. College Street property a; of flea and retail users. As %ou know,
this change twill be a major change to the buildiuc nod will i eduira eXtcalSk e remodeling to the interior of the
huildill". To make the building a class A retail or office space and unmet our clientS t0 the space the will need 10
add all elevator to the building to meet rVDA rcquirenleuts of most major employer and to brill,-, the Spaces to a
t anilla space for the fuua-e tenants nceds
The building ha; 6000 square feet in the lower level and 6000 square feet oil the main floor totulin« 11000 square
lest which tt ill need the majorit% of the remodeling. The 0000 square feet third floor Space will need a minor face
lilt with the c.wcption of needing the eleaator to meet the class A tenant rcquircmcntS.
AA'c are requesting an assiStarnce of Sfl00. i?S to be in a for -,iyable loan to the Landlord 'Otv[let to complete this
eztensk e remodeling cost and cover our Gap needs for the tenants tee are ill discussion tt ith and potential lc leasing
too.
In Stunnnar} the are asking for consideration iioul the Cit} 10 help fund the Clap in one of these secnarios. Iu turn
the City twill heuetit liv allowing the f ollowin<u:
® 100'sofnetvjob's
• 18.000 squac feet of slat s A retail or office space versus class C space
• Retail Office userverso; bar user and potential I OO'S of new business people downtown
Please let nic know your thoughts on this proposal and hkm tt c cuu wort: together to achieve the same goals of uctc
business dov%ntoten as well as new offi e space tctstu hal space dntt;ntoWe.
Sincclelt.
J
lreldhouse:lnveitnteut. LLC
6lenlher. BnnlfOrd I Iousu
City of Iowa City Application
TIF Tax Rebate or Tax Abatement\Exemption
Business Requesting Financial Assistance:
Business Name: Field House Investment, LLC
Name of Authorized Person to Obligate the Business: Bradford J. Houser
Business Address: 327 2nd Street, Suite 200, Coralville, IA 52241
Business Contact Person: Bradford J. Houser Title: Member
Telephone:319-887-6418 Fax:319-887-1263
E-mail Address: bradhouser(o)houserdeveiopment_com
Business Federal ID#: 26-0735481
Date of Application Submittal: 11-15-12
Release of Information and Certification (NOTE: Please read carefully before signing)
I hereby give permission to the City of Iowa City (the City) to research the company's history,
make credit checks, contact the company's financial institution, and perform other related
activities necessary for reasonable evaluation of this proposal. I understand that all information
submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa
Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all repre-
sentations; warranties or statements made or furnished to the City in connection with this
application are true and correct in all material respects. I understand that it is a criminal violation
under Iowa law to engage in deception and knowingly make, or cause to be made, directly or
indirectly, a false statement in writing for the purpose of procuring economic development
assistance from a state agency or political subdivision.
SIGNATURE OF COMPANY OFFICER AUTHORIZED TO OBLIGATE BUSINESS:
NOTE: The City will not provide assistance in situations where it is determined that any repre-
sentation, warranty or statement made in connection with this application is incorrect, false,
misleading or erroneous in any material respect. If assistance has already been provided by the
city prior to discovery of the incorrect, false or misleading representation, the city may initiate
legal action to recover city funds.
1. What is the location of the proposed project?
111 & 113 E. College Street, Iowa City, IA 52240
2. Please provide a brief timeline for the proposed project.
Remodeling will be started and completed during the 2013-14 calendar years
contingent upon tenants' needs and desires.
3. Describe in detail the proposed "project" (e.g., company relocation, plant expansion, remodel-
ing, new product line and/or new facility).
This project will entail a full/complete remodel of the former sports bar space
(formally known as "The Field House") into retail and/or office space based upon
tenants' needs and desires.
4. Specifically, what type of capital improvements will be completed? (e.g. new building,
remodeling, fa4ade improvement, accessibility)
This project will include the following items to be completed for the tenants at 113 E.
College Street (former known as "The Field House") in order to bring the space to a
vanilla space:
a. Demolition of needed changes to the main floor and lower level,
b. Addition of a new elevator to service the entire building,
c. New Mechanical or HVAC,
d. Electrical upgrade,
e. New plumbing for unit's needs,
f. Changes to the sprinkler and fire alarm system as needed,
g. New stairways to service all floors as needed,
5. Will the project increase the value of the property by at least 15%? Please include the amount
of the proposed investment.
Yes, this project will bring the building value up from $1,750,000 to $2,550,730; by
adding City contributions of $800,730 based upon the remodeling bid (see attached
estimate).
6. Type of assistance requested: (check one)
Tax Increment Financing _ X
Tax Exemption
Tax Abatement
If an existing Iowa City business, how many total individuals have been employed by the
company at the Iowa City facility during the past year?
N/A- this will depend
8. What is the number of jobs within the existing or proposed Iowa City facility and what is the
starting average hourly wage rate (not including fringe benefits):
For the new employees? Unknown at this time and will depend upon the new clients
For existing employees? Unknown at this time and will depend upon the new clients
For existing and new employees? Unknown at this time and will depend upon the new
clients
9. Does the business provide standard medical and dental insurance for full-time employees? If
so, what percentage of the standard medical and dental insurance package expense does the
company provide?
N/A
10. A gap analysis using the projections of your net operating expenses will be conducted. Under
separate cover, please submit 3 years of financial projections for the project including all
sources of funds, uses of funds, operating income and expenses.
See attached proforma
11. Beyond the present project, what future growth potential is there for the Iowa City operation?
This project will bring a new, modern, up-to-date building downtown that will allow
the developer and the City to market to large retailers, office/business spaces that
are not currently available in the downtown area. This will spark the desire for future
building remodels as well as future business's to grow and expand downtown; which
is very much needed right now. This will be a similar growth as compared to the
former Vito's building.
12. Please describe the energy and resource efficiency programs, waste reduction, waste
exchange, and/or recycling programs at your Iowa City operation.
N/A
13. Do you use recycled materials in the production of any products or through the provision of
any services at your facility? If so, please describe.
NO
14. Has the business been cited or convicted for violations of any federal or state laws or
regulations within the last five years (including environmental regulations, Occupational Safety
and Health laws, Fair Labor Standards, the National Labor Relations Act, and the Americans
with Disabilities Act)? If yes, please explain the circumstances of the violation(s).
NO
Houser Development,LLC MMMa
113 E. College Street Mortenson
Iowa City, IA
Budget Estimate Start Date Fall 2O12
August 23, 2012 Completion Date Spring 2013
System
Costper
Cost per
Total
UniFormat System Level
Area
System
GSF
Cost
SUBSTRUCTURE
Foundations
0
#DIV10!
$
2.08
$
25,000
Basement Construction
0
#DIV101
$
-
$
-
SHELL
Superstructure
0
#DIV/01
$
0.21
$
2,500
Exterior Enclosure
0
#DIV/01
$
2.83
$
34,000
Roofing
0
#DIV/01
$
0.42
$
5,000
INTERIORS
Interior Construction
12,000
$ 12.04
$
12.04
$
144,518
Stairs
100
$ 558.00
$
4.65
$
55,800
Interior Finishes
12,000
$ 2.86
$
2.86
S
34,276
SERVICES
Conveying
10
$ 6,000
$
5.00
$
60,000
Plumbing
12,000
$ 2.88
$
2.88
$
34,500
HVAC
12,000
$ 8.00
$
8.00
$
96.000
Fire Protection
12,000
$ 2.25
$
2.25
$
27,000
Electrical
12,000
$ 6.00
$
6.00
S
72,000
EQUIPMENT & FURNISHINGS
Equipment
12,000
$ -
$
-
$
-
Furnishings
12,000
$ -
$
-
$
-
SPECIAL CONSTRUCTION & DEMOLITION
Special Construction
12,000
$ -
$
-
$
-
Selective Building Demolition
2,500
$ 4.80
$
1.00
$
12,000
SITEWORK
Site Preparation
Site Improvements
Site Civil/ Mechanical Utilities
Site Electrical Utilities
GENERAL REQUIREMENTS
General Conditions/Site Services
12,000
$ 3.50
$
3.50
$
42,000
UniFonnat System Level - Total Cost $
53.72 $
644,594
Construction Escalation
3,00%
$
19,338
Subtotal
$
663,931
Estimating/Const. Contingency
5.00%
$
33,197
Subtotal
$
697,128
Performance & Payment Bond
0.00%,
$
-
Builders Risk Insurance
1.224%
$
8,533
Liability Insurances
1,011%
$
7,048
Subtotal
$
712,709
Contractor's Fee
7.00%
$
49,890
Subtotal
$
762,598
Developer Fee
5.00%
$
38,130
Total Construction Cost $ 66.73 $ 800,728
Gross Building Square Footage 12,000 $/ GSF 66.72735
Printed on: 8/292012
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