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HomeMy WebLinkAbout12-18-2012 Council Economic Development CommitteeAGENDA City Council Economic Development Committee Tuesday, December 18, 2012 8:00 a.m. Helling Conference Room City Hall 1. Call to Order 2. Consider approval of minutes from November 19, 2012 Economic Development Committee meeting 3. Consider recommendation for funding Mission Creek Festival 4. Discussion of use of CDBG Economic Development funds for exterior renovation projects in designated areas 5. Staff time 6. Committee time 7. Other business 8. Adjournment MINUTES PRELIMINARY CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 19, 2012 HELLING CONFERENCE ROOM, 8:00 A.M. Members Present: Matt Hayek, Susan Mims, Michelle Payne Staff Present: Tracy Hightshoe, Geoff Fruin, Jeff Davidson, Wendy Ford, Tom Markus, Kevin O'Malley, Sue Dulek, Steve Long Others Present: Charlie Cowell, Brad Houser, Lee Hermiston RECOMMENDATIONS TO COUNCIL: Hayek made the motion to forward staff's recommendation for financial assistance for rehabilitation to 111 E. College Street to the full Council for their review. Payne seconded the motion. The motion carried 3-0. Hayek made the motion to forward staff's recommendation for financial assistance on a Towncrest Senior Housing project to the full City Council for their review. Payne seconded the motion. The motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Mims at 8:02 A.M. WELCOME AND INTRODUCTIONS: Chairperson Mims welcomed everyone and asked that those present introduce themselves. CONSIDER APPROVAL OF MINUTES: Chairperson Mims asked if there were any comments, changes, etc., to the minutes. Hayek moved to approve minutes from the October 2, 2012, meeting as submitted. Payne seconded the motion. Motion carried 3-0. Steve Long gave an overview of the developer's request for financial assistance for building rehabilitations at 111 E. College Street, site of the former Fieldhouse Bar. Total project costs, including the cost of initial acquisition is about $2.5 million, including the rehab estimate of $800,000. The National Development Council (NDC) reviewed the project and confirms a gap of about $500,000, The time required for TIF revenue generated only from the project to cover a $500,000 subsidy would be more than 18 LDC November 19, 2012 years, however. To reduce the payback time to just under 15 years, staff is recommending a smaller amount: $400,000. Brad Houser, the building owner, gave Members a brief recent history of the building, noting that it has been a bar since 1971. The space is large at 18,000 square feet, 12,000 of which is the bar area, and 6,000 of which is upper floor office space. He noted that the project would include fully gutting the first two floors and installing all new HVAC, electrical, plumbing, and sprinkler systems, and an elevator. Discussion ensued. Payne stated that she agrees that 18 years would be a long time to recoup $500,000. It was explained that, while the end project will be valuable, the increment or increase in taxes to be gained by the project is relatively small due to the building's existing high valuation. Davidson noted that the Fieldhouse was one of the locations downtown that was known as a problem bar, and if they could help to change the use of this space, it would be a benefit for the City and help achieve another of Council's goals. Markus asked O'Malley about the gap analysis and whether he was comfortable with it. O'Malley stated that he reviewed it and concurred with NDC's analysis. He added that he thought the timeline to recoup the funds was conservative and could possibly occur more quickly. Payne asked what type of prospects they have for leasing the space. Houser stated that he has several letters of intent on his desk. Hayek asked about the acquisition side of the project costs. Long explained, stating that in order to get the true project costs, acquisition cost and associated debt must be considered. He further clarified for Members how they arrived at these figures, noting the conservative approach. Staff responded to Members' questions, noting the difference in this project from the Vito's building project. Mims stated that she would like to see a shorter payback period, but that she supports this kind of project. The discussion continued around desired development and redevelopment in the downtown area. The desire for office and retail space continues. Hayek stated that he would be supportive of this recommendation if presented to the Council at an upcoming meeting. Hayek made the motion to forward staff's recommendation for financial assistance for rehabilitation to 111 E. College Street to the full City Council for their review. Payne seconded the motion. The motion carried 3-0. CONSIDER RECOMMENDATION TO CITY COUNCIL ON TOWNCREST SENIOR HOUSING PROJECT: Davidson spoke to the Members about this project, noting that at their last Council meeting they did pass the first consideration on this zoning request. Hightshoe spoke to Members next about the project and proposed financing. The proposed project would be affordable rental housing for the elderly, 62 years of age and older. The three story building will house 41 units with 10 handicap -accessible. The developer is applying for Low Income Housing Tax Credits (LIHTC) from the Iowa Finance Authority (FA) for this project. She explained the timing challenges involved because of a December 10, 2012 EDC Novembu 19, 2012 LIHTC application deadline. The National Development Council (NDC) has been working with staff and the developer to review their operating proforma and budget. She noted that the NDC determined a $1.3 million gap exists. Staff is recommending City financial support including a $375,000 20-year GO bond (to be repaid by developer) and $300,000 from the Towncrest catalyst incentive funds (forgivable loan). With this recommendation, the developer can then apply for $350,000 in CDB/HOME funds through the regular allocation process that begins in January. Hightshoe added that this will still not close that gap completely. Staff believes this project is feasible and Hightshoe reiterated the details. Hayek asked what would happen if this funding were not made available to the developer. Hightshoe responded that the project would most likely not go forward. The project will not proceed if they aren't awarded the tax credits through IFA. Members asked questions of staff regarding this project. One area in question was the use of TIF funds. Hightshoe stated that due to the unique nature of how property taxes are determined for LIHTC projects, the project will not generate a significant increment so staff did not pursue this funding stream. The discussion continued, with Davidson noting how this project will really help to revitalize the Towncrest area. Hightshoe then spoke briefly about the streetscape for this area and how plans to implement it stand. Hayek asked for further clarification on the use of GO bonds for such a project, to which staff responded, giving examples of past projects where this was done. Hayek made the motion to forward staff's recommendation for financial assistance on a Towncrest Senior Housing project to the full City Council for their review. Payne seconded the motion. The motion carried 3-0. 6'i�1��lilPfl� Davidson addressed the Members first, stating that at the November 26 meeting with Council they will be sharing the proposals for the College -Gilbert property. Markus asked Davidson to further clarify the proposal on the Chauncey Gardens site. He and Davidson noted how the proposals panned out and why they decided as they did. Long then spoke about the Burlington Street Dam modification project, stating that a grant was received last week from the Iowa Great Places program that will help pay for the hiring of a whitewater design and engineering firm. Long continued, further explaining the various funding streams they plan to use on this project. Markus asked Long to speak to the funding gap and how they plan to address this. Long stated that the City is working with the University to split the cost between the City and the University as it affects both entities in a positive manner. Hayek asked what plans there are for kayaks and that type of thing in this area. Long stated that several private entities have contacted him with an interest in providing such services. The University, according to Long, is also interested in moving forward with Phase 2 to their Recreation Center. This would include the area of the dam and the riverbank. Davidson then spoke about 221, 225 N. Linn and the proposed project there. The developer has now come back with a revised project that Davidson believes has addressed the concerns of the neighborhood. Next he spoke about the north Dodge Hy- EDC November 19, 2012 Vee project. This will be a significant project, according to Davidson. This would then free up the existing Hy-Vee building for a multitude of uses. The Hampton Hotel is on schedule to open later this week, according to Davidson. Also in the works is a reassessment of the multi -use parking facility in Riverfront Crossings. Davidson then spoke about the commercial zoning committee that was put together with the private sector. He noted they will be having their third meeting tomorrow and hope to have recommendations for the Planning and Zoning Commission soon. Ford spoke next about the Economic Development opportunity fund, noting that a new business to town — Running Wild — is moving into a space on Washington Street. They have asked the City for assistance in making this move, and staff recommended funds be made available to them in the amount of $1,539. Ford also noted that staff has been busy with administrative duties, such as the filing of the urban renewal area report which Council recently approved. There will also be a TIF debt certification approval coming to the Council. Ford also noted that staff has been able to put together some marketing studies to better assist developers in seeing where the demands are. O'Malley spoke to Members about the City's bond rating and information he learned when selling the TIF revenue bonds for the Park @ 201 project. Markus noted that Moody's (the company that evaluates cities for their bond ratings) cites that projects in districts having less than 100 acres are more severely financially challenged, and that influences the bond ratings, in particular in California. COMMITTEE TIME: Mims thanked staff for their hard work on all of these various projects, noting that she and others are very appreciative of all the work put into getting these projects vetted, etc, Hayek stated that he has also heard good feedback from the private sector on the various initiatives coming out of City Hall. He also noted the energy of the Downtown District and how things are happening downtown. OTHER BUSINESS: None. ADJOURNMENT: Payne moved to adjourn the meeting at 8:48 A.M. Hayek seconded the motion. Motion carried 3-0. EDC November 19, 2012 Council Economic Development Committee ATTENDANCE RECORD 2012 TERM " N c,w W � w M 1 NAME EXP. 3 ro 3 N Cnn 1 -I W W O O N N O Michelle 01/02/14 X X X X X X X X X Payne Matt 01/02/13 X X X O/ X X X X X Hayek E Susan 01/02/13 X X X X X X X X X Mims 7 Key: X = Present O = Absent O/E = Absent/Excused LDC November 19, 2012 r CITY OF IOWA CITY MEM0RANDUM Date: December 13, 2012 To: Economic Development Committee From: Wendy Ford U Re: Agenda Item #3: Request for Funding from Mission Creek Iowa City's Mission Creek Festival is requesting $5,000 in funding assistance from the City's Economic Development Opportunity funds. The five day 2013 Festival, April 2-7, will be the 71h annual Mission Creek Festival and will continue a tradition of featuring fine music, literary and culinary culture. It is an event that provides a venue for Iowa artists to be exposed to national attention and for nationally recognized artists to gain an Iowa audience. The resulting coverage increases Iowa's presence in the national scene and Iowa City as the cultural hotbed of the upper Midwest. Every year more tickets are sold, more events are staged and more of the community is involved. In 2012, the event was staged in 23 Iowa City venues and drew 10,400 people (a 13% increase over the year prior). It featured 228 musicians, 104 of whom were Iowa -based; 70 writers, 48 of whom were Iowa -based, and 12 Iowa chefs. There is also broad support from businesses and our non-profit community, local radio stations, media and several facets of the University of Iowa. Notably, local restaurants are very strong contributors, an indicator that Mission Creek is good for their bottom lines. With such broad community support, a growing program and increasing notoriety the festival's influence reaches far beyond the Creative Corridor. Staff is recommending support of this request. Please feel free to contact me with questions. Andre Perry, Mission Creek festival director, will also be in attendance at your meeting. MISSISIN CREEK FESTIVAL Wendy Ford Economic Development City of Iowa City October 19, 2012 Wendy I am writing to submit a funding request to the City of Iowa City's Department of Economic Development in the amount of $5,000 for Mission Creek Festival 2013 (April 2 — 7, 2013). We deeply appreciate the history of support, financial and advisory, from the City of Iowa City. Our festival continues to grow in positive ways from year to year. In 2011 and 2012 we reached attendance numbers close to 10.000. In 2012, the Friday and Saturday programs marked full -capacity shows at each of our downtown performance spaces including Blue Moose Tap House, The Englert Theatre, Gabe's, The Mill, and Iowa City Yacht Club. Beyond the traditional venues we programmed a multitude of events in 18 other downtown businesses stretching from the core of downtown to the historic Northside District. With a focus on music, literature, and food culture, Mission Creek Festival continues to provide the greatest opportunities for Iowa -based artists to perform their work as well as for Iowa -based patrons to see nationally and internationally -regarded artists. Our literary arm is the longest -running literary festival in Iowa City. Our music programming consistently brings notable acts to Iowa City for the first time, thus increasing our stature amongst prominent artist booking agents. Mission Creek Festival continues to garner positive and strong regional coverage as well as national coverage from publications in the music and literary worlds, thus increasing the spotlight on Iowa City as a cultural center. As we grow we continue to rely on support from key sponsoring organizations in addition to ticket revenue. Given our focus on promoting diverse events in downtown businesses and our increasing attendance numbers we consider ourselves a factor in Iowa City's continued cultural and economic growth. We hope you will consider our request for funding support for the 2013 festival. I have included several informational documents about the festival, including the 2013 budget outline. Please contact me for further information or if you have other questions. Thank You, Andre Perry Mission Creek Festival, Director Organizational Information Organization: The James Gang dba Mission Creek Festival Event: Mission Creek Festival / htlglJtnissi rt(reT k.axn Dates: April 2 - 7, 2013 / Anticipated Attendance: 10,000+ Contact: Andre Perry / 210 North Gilbert Street, Iowa City, Iowa 52245 319 594-9135 / andre@missionfreak.com About Founded in 2005, Mission Creek Festival is an annual week-long festival that takes place every spring in Downtown Iowa City. The festival is dedicated to inspiring and building the Iowa City area's artistic communities through the exposure of local, regional, national, and international artists. The programming focuses on literary readings, music performances, public lectures, local food culture, and educational outreach. The festival serves audiences of all ages and cultural backgrounds. The festival also utilizes the existing cultural geography of our town — bookstores, clothing stores, cafes, and performance spaces — turning the downtown area into an easily -navigated nexus of music, art, and transformative experiences. The primary objective of the Mission Creek Festival is to enhance the quality of life in the community through diverse arts programming that caters to young and creative individuals, traditional patrons of the arts, and general members of the community. It is our belief that students, professionals, new transplants, young families, and lifelong residents can work together to infuse a community with vitality. In our continuing dedication to new and progressive art forms, as well as broadening the scope of the festival to include initiatives like local food culture and educational outreach, we present festival artists and attendees with programming experiences uncommon in the Southeastern Iowa cultural landscape. Consequently, our festival increasingly draws comparisons to nationally recognized events like South by Southwest in Austin, Texas and Litquake Festival in San Francisco, California. This festival has literally grown from "the ground up," with the support of local and regional businesses that continues to sustain us. Many of our sponsors have noted how our event not only deepens the cultural fabric of the Cedar Rapids/Iowa City "Corridor," but also drives residents and revenue toward locally -owned shops and restaurants. We work closely with our local business partners and sponsors to assess needs, measure outcomes, and arrange in -kind and promotional donations that highlight the area's resources and services. 2012 Festival — Quick Facts Attendance: 10,400 (9,200 in 2011) Number of featured musicians: 228 / Number of featured writers: 70 Number of Iowa -based musicians: 104 / Number of Iowa -based writers: 48 Number of Iowa -based chefs: 12 Venues in 2012 (23 venues): The Englert Theatre, First United Methodist Church, Blue Moose, The Mill, Gabe's, Prairie Lights, RSVP, Foxhead, Banditos, Georges, MC Ginsberg, Revival, Yacht Club, Deadwood, Joe's Place, Takanami, Motley Cow, Iowa City Public Library, University of Iowa Main Library, Public Space One, Dublin Underground, Times Club, White Rabbit Sponsors in 2012 (36 sponsors / 20K in sponsorship funds): West Music, MC Ginsberg, Moen Group, New Pioneer Co -Op, Iowa City Sheraton, Iowa City/Coralville Convention and Visitors Bureau, Catherine's, The Mansion, New Belgium Brewing, Jim Beam, Iowa City Area Development, Little Village, Iowa City Youth Writing Project, Musician's Pro Shop, Working Group Theatre, Joe's Place, KCCK, Revival, Litquake, Record Collector, 126, Motley Cow, Devotay, Augusta, Leaf Kitchen, Yotopia, Takanami, Her Soup Kitchen, Chef's Table, Banditos, Deluxe Bakery, RSVP, and University of Iowa: Hancher Auditorium, SCOPE, KRUI, Obermann Center for Advanced Studies. Selected Past Festival Performers/Writers/Lecturers (2006 — 2012): David Cross, Bon Iver, Beach House, the Magnetic Fields, Guided By Voices, Thurston Moore & Kim Gordon of Sonic Youth, John Waters, Patty Griffin, Greg Brown, Pieta Brown, Bowerbirds, GZA/Genius, Public Enemy, Spoon, the Walkmen, the Mountain Goats, Dan Deacon, Fruit Bats, Zola Jesus, No Age, the Antlers, Camera Obscura, Tilly and the Wall, Sharon Van Etten, Colson Whitehead, Charles D'Ambrosio, Edmund White, Eula Biss, Tim Hecker, Rhys Chatham, The Meat Puppets, William Elliott Whitmore, D.A. Powell, Booker T., Kiki Petrosino, and hundreds more... More Facts: -In 2012, we initiated our Artist -in -Residency series in which we commissioned two musical acts — Erase Errata from San Francisco and Dirty Beaches from Montreal — to record new albums at Iowa City's Flat Black Recording Studio with local engineer Luke Tweedy. Our goal was to strengthen the visiting artists' connection with and experience of Iowa City. -In 2012, we significantly broadened our community outreach initiatives including a spoken word workshop led by actress/poet Amber Tamblyn (House, 127 Hours) and Beau Sia (Def Jam Poetry champion) for middle school and high school students from across the state of Iowa. -Mission Creek staffers regularly attend important industry conferences and events — South by Southwest (Austin), Association of Writers and Writing Programs Annual Conference (Boston in 2013), Association of Performing Arts Presenters Annual Conference (New York), Litquake (San Francisco), Arts Midwest (Grand Rapids in 2012), Conversations and Connections (Washington, D.C.) — as representatives of Iowa City's cultural milieu, thus expanding, on a national level, knowledge and recognition of the events that occur in our town. Future Goals: -Expanding community outreach programs -Expanding artist residency programs -Establishing cash reserves to ensure long-term sustainability -Increasing staff salaries to ensure that talented, experienced, and dedicated individuals will oversee festival planning and execution II. Mission Creek Festival Budget Overview FY2013 Revenue Festival pass sales: 20,000 Individual tickets sales: 70,000 Sponsorships — cash: 35,000 Sponsorships — in -kind: 5,000 Total revenue: 130,000 Expenses Staffing*: 12,000 Music Programming: 84,000 Literary Programing: 7,500 Outreach Programming: 7,500 Marketing: 10,000 Administration, Production: 5,000 Total costs: 126,000 Net!(Balance): 4,000 III. Core Staff Bios Andre Perry, Festival Director Andre Perry lives in Iowa City where he serves as Executive Director of The Englert Theatre, a 100-year- old performing arts space in the heart of downtown. He is also the co-founder and director of the Mission Creek Festival, a weeklong exploration of music, literature, and food culture that inhabits established venues as well as non-traditional performance spaces in Iowa City. Perry received his MFA from the Nonfiction Writing Program at the University of Iowa (2008) and his BA in English from Princeton University (2000). He continues to write and publish in the field. Joseph Tiefenthaler, Executive Producer— Director of Literary Programming Joseph M. Tiefenthaler is a native Iowan and received his BA in English from the University of Iowa (2005). He is the Fall Residency Coordinator at the University of Iowa's International Writing Program, in which he annually serves as the cultural ambassador from Iowa City for roughly 30 writers from around the world. He also co -leads literary outreach trips with American writers in foreign lands, most recently helming a trip of three U.S. writers to the nation of Brazil in May 2012. Joe is the Assistant Fiction Editor for acclaimed literary journal, Wag's Revue. Christopher Wiersema, Executive Producer— Production & Programming Leaving a position at Chicago's Newcity magazine, where he covered arts and culture, Chris relocated to Iowa City in 2001 and found a fertile arts community that offered encouragement, collaboration, and enthusiasm. Noticing a deficit in avant-garde music programming, Chris began a music promotion company, Outsound Productions, with little more than his email, a clutch of extension cords, the promise of a home -cooked meal, and tacit permission to use a closed downtown business as a venue. Since then his productions have occupied traditional and non-traditional venues alike. The scope of his musical focus now includes myriad genres and he has hosted artists, composers, and musicians from around the world. Chris previously served as manager of local music venue, the Picador, and currently serves as a programmer at the Mill. He has studied at Columbia College and the School of the Art Institute of Chicago.