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Home My WebLink About2007-05-24 Info Packet I::: j -::. -~- !~~l!:~ -..;;:,.... _o."m-i- .... _ ~r ~ CiTY OF IOWA CiTY www.icgov.org CITY COUNCIL INFORMATION PACKET May 24, 2007 MISCELLANEOUS IP1 Tentative Council Meeting and Work Session Agenda IP2 Letter from Mayor Ron Rordam and Town Manager Marc Verniel to Mayor Wilburn: Thank you on behalf of the Town of Blacksburg and Virginia Tech campus IP3 Memorandum from the Director of Housing & Inspection Services, Fire Chief, Sr. Building Inspector, and Deputy Fire Chief: Revised Proposal for Life-Safety Requirements for Existing A-2 and B Occupancies with Alcoholic Beverage Division License (ABDL) IP4 Memorandum from Captain Widmer to the City Manager: FY 2007 Justice Assistance Grant IP5 Letter from the JCCOG Traffic Engineering Planner to Residents on Kimball Road between N. Governor Street and Whiting Avenue: Meeting to discuss traffic calming on Kimball Road IP6 Letter from the JCOG Traffic Engineering Planner: Re-survey evaluating traffic calming project in the alley between Seventh Avenue and Bradley Street IP7 Letter from JCCOG Traffic Engineering Planner to Residents of Morningside Drive between 7'h Avenue and Colle~e Street: Re-survey evaluating traffic calming project in Morningside Drive between 7 Avenue and College Street IPS Memorandum from the Chief of Police: Canine Police Dog Honors IP9 Police Department Use of Force Report - March 2007 IP10 Letter from Theresa Wilson: Iowa City Housing Authority [submitted by Council Member Correia] IP11 E-mail from Charlie Eastham to Carla Pope: Request for Comments on 2008 L1HTC Qualified Allocation Plan (QAP) IP12 Agenda Packet: Economic Development Committee: May 29,2007 PRELIMINARY/DRAFT MINUTES IP13 Planning and Zoning Commission: May 3, 2007 IP14 Airport Commission: May 15, 2007 IP15 Animal Care Task Force: April 12, 2007 May 24, 2007 Information Packet (continued) 2 'PiG Board of Adjustment: May g, 2007 IPH Airport Commission: May 10, 2007 I'; 1 ;::;,~=_4'~ :f~~W!:'"I.~ -..::::...~ _ao., -......... CiTY OF IOWA CiTY City Council Meeting Schedule and Work Session Agendas I U~~4t J May 23, 2007 www.icgov.org TENTATIVE FUTURE MEETINGS AND AGENDAS I . MONDAY, JUNE 4 Emma J. Harvat Hall 6:30p Council Work Session . TUESDAY, JUNE 5 7:00p Formal Council Meeting Emma J. Harvat Hall . MONDAY, JUNE 18 6:30p Council Work Session Emma J. Harvat Hall . TUESDAY, JUNE 19 7:00p Formal Council Meeting Emma J. Harvat Half . MONDAY,JULY9 6:30p Special Council Work Session Emma J. Harvat Hall . TUESDAY, JULY 10 7:00p Special Formal Council Meeting Emma J. Harvat Half . MONDAY, JULY 23 6:30p Special Council Work Session Emma J. Harvat Half . TUESDAY, JULY 24 7:00p Special Formal Council Meeting Emma J. Harvat Half . WEDNESDAY, JULY 25 7:30a Joint Meeting Johnson County Fair . MONDAY, AUGUST 20 6:30p Council Work Session Emma J. Harvat Half . TUESDAY, AUGUST 21 7:00p Formal Council Meeting Emma J. Harvat Hall V VV VV~cl<sBurOF VVVEST 119Rg VV V ~ Ron Rordam MaYl)[ rrordam"blacksburg.gov 300 SOllth Main Street P.O. Box 90003 Blacksburg, VA 24062-9003 e,b'\1 rI""",y ~~ Donna Boone-Caldwell, MMC ~)wn Clerk dcaldwell@blacksbu1g.gov 540/961-1147 phone 540/961-1877 fax Mayor Ross Wilburn Office of the Mayor 410 E. Washington Street Iowa City, IA 52240 Dear Mayor Wilburn, Thank you for the kind words that you recently sent after the April 16th tragedy on the Virginia Tech campus. Though our community is heartbroken, it gives us strength to know that we are in the thoughts and prayers of so many from around the world. Blacksburg and Virginia Tech are closely tied together and these events shook us to the core. We are so proud of how our citizens reacted, and these citizens include the students at Virginia Tech. We united as a community and joined together to offer support and assistance wherever it was needed. People around the world saw Blacksburg as a strong and caring community. That will not change. Please know that your words mean a great deal to us. It will help us in the days ahead as we deal with the aftermath of this horrific event and begin to move forward through the healing process. Again, thank you for your thoughtfulness. 2A2~ Ron Rordam Mayor 4?1~U;,- V' Marc Verniel Town Manager I! 1 ~~~''t ~:;''''iiiir~IIII'' ...a.a CITY OF IOWA CITY MEMORANDUM ~ Date: May 23, 2007 City Council To: Re: Doug Boothroy, Director of Housing and Inspection Services Andy Rocca, Fire Chief Tim Hennes, Sr. Building Inspector Roger Jensen, Deputy Fire Chief Revised Proposal for Life-Safety Requirements for Existing A-2 and B Occupancies with Alcoholic Beverage Division License (ABDL) From: We have attached to this memorandum a revised proposal concerning life-safety requirements for existing A-2 and B occupancies with an ABDL. This revised proposal reflects agreement between staff and many bar and restaurant owners on the life-safety requirements for existing businesses except the voice alarm reauirement. There are 13 existing businesses that would be impacted by the voice alarm requirement. Also, there is support for the proposed City incentive package which would be available to affected businesses for three years from the date of ordinance adoption. This proposal represents progress in finding a good balance between life-safety needs and the concerns expressed by various impacted businesses. Notwithstanding the issue of voice alarms, this proposal would require sprinkler systems to be retrofitted into existing businesses with hazard characteristics of high occupancies or being located above or below the ground floor. Businesses with lower hazard characteristics and which are single-occupancy, single- story, stand-alone would be required to retrofit with fire sprinkler systems upon change of ownership. All A-2 and B occupancies would be able to take advantage of the three-year incentive plan to upgrade their life-safety systems. Finally, while staff and bar and restaurant owners have been able to resolve most Life-Safety upgrade issues, we have not resolved the voice alarm requirement. Therefore, whether or not voice alarms should be required is an issue that will need to be resolved by Council. Staff intends to make a short informational presentation about voice alarm benefits at Council's June 5, 2007 meeting. If you have any questions, please feel free to contact us. Your time, consideration, and support of this matter are very much appreciated. Attachment hisadm/mem/proposaIS-22.doc Proposed Life-Safety Amendments for Existinl! A-2 Occupancies with State of Iowa Alcoholic Beverage Division License (ABDL) Requirements 1. A-2 Occupancies with an ABDL and an occupant load of 299 or more. (a) Automatic sprinkler system within 3 vears. (b) Voice alann system within 15 vears or change of ownership. Sprinklers and Voice Alarms 1. Joe's Place 2. Old Capitol Brew Works 3. One-Eyed Jakes 4. The Picador 5. The Que 6. The Union Voice Alarms 1. First Ave. Club 2. Brothers Bar & Grill 3. The Speak Easy 4. Sports Column 5. The Summit 6. Third Base Fieldhouse 7. Vito's 2. A-2 and B Occupancies with an ABDL located above or below the ground floor with an occupant load of 298 or less. Automatic sprinkler system within six vears. I. The Airliner 2. Atlas World Grill 3. Givanni's 4. Iowa City Yacht Club 5. The Sky Box 6. Dublin Underground 3. A-2 Occupancies with an ABDL with an occupant load of 298 or less and single business, single story, stand alone A-2 occupancies with an occupant load of 299 or more. Automatic sprinkler system with change of ownership. 7. One Twenty Six 8. Quinton's 9. Restaurant Verde 10. Panchero's 11. Quality Inn & Suites 1. 808 Restaurant/Nightclub 2. Bob's Your Uncle (W) 3. The Deadwood 4. ETC 5. Farras 6. India Cafe 7. Micky's 8. Pagliai's Pizza 9. Rick's Grill & Spirits 10. Sanctuary Restaurant 11. Studio 13 12. The Vine 13. VFW Post 14. Aoeshe 15. American Legion 16. Carlos O'Kelly's 17. E1 Ranchero 18. Elks Club 19. Fitzpatrick's 20. Godfather's Pizza 21. Grizzly's Pub & Grill 22. The Ground Round 23. Kandy Land 24. Los Portales 25. Pizza Hut 26. Eagles 27. LaCasa 28. The Mill 29. Moose Lodge 30. Wig & Pen Life Safety Improvement Incentives The following incentives are available up to 3 vears from date of ordinance adoption to all existing A-2/B occupancies required to upgrade Life-Safety systems: 1. City loan at 1 % interest amortized over ten years. 2. Fire service water line installed to the building and paid for by the City. 5/17120079:49 AM Hisadmin/A-2 amendments.doc ~l;fr~':':, 'l'\'~~~ ~ ..~.. ':ttq':-: , ,71,/, ~"'_ .,.'_ ~ ~ ~.. dlh,I?- ,c,\!,h\;~, ;.-:::.....~ -< --< t'>/O"A_ (/",,-;),,, 'r':'. '\ --. r ....1 Ii)''''\; ,>""','df'P\ j'l / f .,v '" "'. I\\ v:"';i' ;-\~.~>;'lll ,/!<"<>'''l_i>i /" "~-':Ij -:'i~;:'~~~:,,,,~';;';'>~J"'., ~p:i:it-1iftf .~~~~~ '-'~~;' ~ DEPARTMENT MEMO TO: Steve Atkins cA1~ ~ FROM: Captain T.D.Widmer REF: FY 2007 Justice Assistance Grant DATE: May 23, 2007 As you are aware, the Edward Byrne Memorial Justice Assistance Grant has notified Johnson County and Iowa City that we are jointly eligible for $69,599. Chief Hargadine has met with Sheriff Pulkrabek and it was agreed that Iowa City would manage the grant and receive 52% of the funds ($36,191.48 - if full funding granted). We plan on using our portion of the funds as follows; $20,555 - 18 Taser X26 video digital equipped less-lethal devises (one for each marked police unit). The amount also includes purchase of holsters for each officer and sufficient training cartridges to certify all officers. $8917 - Expanded server space for digital storage (l6x400GB, 6.4 TB raw). This will be used for increased storage of video data from in-car cameras and new configuration in booking/interview areas. $4000 - Two ruggidized laptop computers to be used in the field as means of documentation for the FTO training program (currently done on paper form & stored in binders). $1035 - 60-300mm varifocal macro lens and 10-22mm f/3.5-4.5 usm SLR lens. Both of these will be used to enhance photo equipment used by our evidence technicians. $1684 - The remaining funds will be used towards the purchase of a flat screen monitor to be installed in our conference room. This will allow for enhanced computer displays during staff planning, operation and training functions. Please make this information available to the City Counsel as their notification and opportunity for review must be made a minimum of 30 days prior to submission of the application. I will be submitting a brief description and justification for each requested expenditure. Please contact me if you have any questions. _).1 -.bJ;J ~~W!::'t ~'~~IIII~ .,.... . CITY OF IOWA CITY May 16, 2007 4 J 0 East Washington Street Iowa City. Iowa 52240-1826 (319) 356-5000 (J 19) 356-5009 FAX www.icsov.org Residents on Kimball Road between N. Governor Street and Whiting Avenue Re: Meeting to discuss traffic calming on Kimball Road Dear Resident: The City has received a petition from some of the residents on Kimball Road between N. Governor Street and Whiting Avenue to have this portion of Kimball Road considered for the City's Traffic Calming Program. The City completed a traffic evaluation and determined that this street qualifies for the program based on the 85'h percentile speed of traffic exceeding 5 mph over the posted speed limit of 25 mph and exceeding collector street volume of 10DO.vehicies per day. The next step in the traffic calming process is to have a neighborhood meeting to discuss the possible traffic calming measures. The purpose of the meeting is to develop a neighborhood consensus on a preferred traffic calming measure. Examples of traffic calming include the speed humps on 4'h Avenue near City High School and the traffic circles on College Street and Washington Street near Summit Street. If a consensus can be reached, we will then conduct a survey of residences that would be impacted. The intent of the City's traffic calming program is to install traffic calming features onlv if that is the desire of the neighborhood. Piease consider attending the meeting on: Tuesday, May 29, 2007 6:30 p.m. at Shimek Elementary 1400 Grissel Place I expect the meeting to last no more than one hour. If you cannot attend, please feel free to contact me with your comments or questions at 356-5254 or anissa-qerardailiowa-citV.orq. Sincerely, Anissa Gerard JCCOG Traffic Engineering Planner cc: e aVI son Karin Franklin Marcia Klingaman Rick Fosse Ron Knoche Bud Stockman John Sobaski JccogtpJltrslag-meetingltr.doc May 18, 2007 I ~ j I OJ"PEr I ~~~~Ilt ' ~ ,,1III'i1rt- ....: ~ CITY OF IOWA CITY 410 East Washington Street Iowa City. Iowa 52240-1826 1319) 356-5000 1319) 356-5009 FAX www.icgov.org Residents of property adjoining the alley between Seventh Avenue and Bradley Street Re: Re-survey evaluating traffic calming project in the alley between Seventh Avenue and Bradley Street Dear Resident: In the fall of 2005 the City worked with your neighborhood to develop a traffic calming project in response to neighborhood concerns about traffic speeds in the alley between Seventh Avenue and Bradley Street. The approved project installed two speed humps in the alley in spring 2006. As part of the City Council approved Traffic Calming Program, a follow up survey is required to be completed one year after the installation of traffic calming devices. The residential dwellings being surveyed are identical to those who received the original traffic calming survey. One survey postcard is allowed per dwelling unit. We would like to know if the neighborhood would like the speed humps to remain in place or have them removed. A follow up traffic study has been completed. Before the speed humps were installed, 85'h percentile speeds ranged between 19 mph and 20 mph at the two locations where measurements were taken. After the speed humps were installed, 85th percentile speeds were recorded as 18.3 mph and 18.8 mph. This demonstrates that the speed humps have been slightly effective at reducing speeds on this alley. Please fill out the enclosed postage paid survey postcard and return to the City of Iowa City no later than June 5th, 2007. If you have any comments or questions, please contact me at 356-5254 or anissa-qerard@iowa-citV.orq. cc: City Council City Manager Karin Franklin Jeff Davidson Rick Fosse Ron Knoche Marcia Klingaman Matt Johnson Jccogtpfltrsfih.bradleyre-survey. doc I ~ i -~:;. -.... i;---...... ~~IIW~~ ~~Y" .......... CiTY OF IOWA CiTY ~ May 18. 2007 410 East Washington Street Iowa City, Iowa 52240-1826 (3191356-5000 13191356-5009 FAX www.icgov.org Residents of Morningside Drive between 7'h Avenue and College Street Re: Re-survey evaluating traffic calming project in Morningside Drive between 7'h Avenue and College Street Dear Resident: In the spring of 2006 the City worked with your neighborhood to develop a traffic calming project in response to neighborhood concerns about traffic speeds Morningside Drive, The approved project installed four speed humps in summer 2006, As part of the City Council approved Traffic Calming Program, a follow up survey is required to be completed one year after the installation of traffic calming devices, The residential dwellings being surveyed are identical to those who received the original traffic calming survey, One survey postcard is allowed per dwelling unit. We would like to know if the neighborhood would like the speed humps to remain in place or have them removed, A follow up traffic study has been completed, Before the speed humps were installed. 85'h percentile speeds ranged between 25 mph and 41 mph at the two locations where measurements were taken, After the speed humps were installed, 85'h percentile speeds were recorded between 24 mph and 30 mph. This demonstrates that the speed humps have been moderately effective at reducing speeds on Morningside Drive. Please fill out the enclosed postage paid survey postcard and return to the City of Iowa City no later than June 5th, 2007. If you have any comments or questions. please contact me at 356- 5254 or anissa-gerard@iowa-cityorg, ~ Anissa Gerard JCCOG Traffic Engineering Planner cc: . City Manager Karin Franklin Jeff Davidson Rick Fosse Ron Knoche Marcia Klingaman Matt Johnson jccogtplllrs/momingside~resurvey5-18.doc filt;~. ..~;'~;t\'!~\" ~t!~-:m!ii~~ if:" o~A "_~/.,.~\. '11'>\',y;:,,"',~'/H, r;,.f ~'. #';---'~->J ~~. ,v:.t;iJii;. ,t:'<>1\\' '~' "'kLI;j~ I",;;:~:" , c.<!'~~~,!,;~"" " -P-'~E" . . a-Lie X, .-~' !l~'- ;'J~_~( '<~ WY~rJ~ ~ DEPARTMENT MEMO em DATE: May 21,2007 FROM: Mr. Steve Atkins () ~ Chief Sam Hargadine ~ TO: RE: Canine Police Dog Honors Naton, the police K-9 assigned to Officer Kevin Berg was recently awarded with the honor of "Detector Dog Case of the Year". This award was presented by the United States Police Canine Association which is the organization that certifies police dogs. Below are the details that were submitted to the association for their consideration: On 15 November Officer Kevin Berg and K-9 Naton met the I :55am eastbound Greyhound Bus at the depot in Iowa City. They have done this many times in the last few months with only one alert leading to a small user amount of marijuana. On this night, the driver got off the bus and opened the luggage bays, allowing Officer Berg and K-9 Naton to check the luggage before any passengers disembark. The first bay they approached K-9 Naton ran right into the bay and alerted to a bag on the far side. Officer Berg couldn't see which bag caught K-9 Naton's interest, so both went to the other side of the bus and checked the bags again. This time, Officer Berg could see that K-9 Naton had alerted to a large black suitcase. Officer Berg removed that bag and two other, placing them in the street, and instructed K-9 Naton to check them. Again, K-9 Naton alerted to the black suitcase. The bag was wheeled around to the sidewalk, and Officer Berg informed the driver of the situation. Officer Berg looked at the name on the bag, then went onto the bus and called for the passenger to come forward. After the 3 rd time, a passenger stepped up to Officer Berg. They stepped off the bus and Officer Berg obtained 1D from the passenger, however, the passenger's name was different than that on the bag and bus ticket. When asked, the passenger stated, "I didn't know I had to use my real name." Officer Berg asked for consent to search the bag, and the passenger initially consented then immediately refused consent. The passenger then asked if the dog had already sniffed the bag. Officer Berg told him yes, and then asked again for consent. Passenger stated, "No...not in front of all these people." Officer Berg suggested they go around the corner of the building out of sight, and the passenger agreed. On the short walk around the building, the passenger responded to Officer Berg's questions, admitting there was marijuana in the bag, and that it was "probably pounds..." The bag was checked and Officer Berg discovered multiple pounds of bundled marijuana. The passenger was arrested and handcuffed. The total weight of the marijuana was a little over 48 pounds. ~ ~' IOWA CITY POLICE DEPARTMENT ~V USE OF FORCE REPORT Mareh 2007 Ofe# Date Ine # Incident Foree Used 2007- 39 03-03 11185 Fight Officer used hands-on control techniques to restrain, arrest, & transport a combative person. 18 03-04 11291 Fight Officer used hands-on control techniques to restrain, arrest, & transport a combative person that attempted to flee. 98/23/ 03-12 12588 Armed Subject Officers displayed sidearms while 36/56 entering/searching residence for a person reportedly armed with a firearm. Suspect had reportedly threatened to shoot another. 05 03-14 12802 Theft Officer used hands-on control techniques & OC to restrain, arrest, & transport a resistive person that attempted to flee. 51 03-16 13101 Traffic Stop Officer displayed handgun while securing (handcuffing) passengers after a handgun was seen in the vehicle. 20/44/ 03-16 13105 Suspicious Officers used hands-on control techniques, 55 Person active counter-measures (strikes), & OC to restrain, arrest, & transport a resistive, combative person that attempted to flee. 31 03-16 13109 Injured Animal Officer used his sidearm to destroy a deer critically injured by a motor vehicle. 88/34 03-17 13164 Assist Other Officers used hands-on control techniques to Agency (arrest restrain, arrest, & transport a resistive, [self] warrant) destructive person. 81 03-18 13419 Fight Officer used hands-on control techniques to restrain, arrest, & transport a combative person that attempted to flee. 25 03-20 13838 Fight Officer forced entry to an apartment after hearing & seeing a male assaulting a female. 32/35 03-21 13852 Fight Officers physically escorted/carried a passively uncooperative prisoner to facilitate transport to jail. 11 03-22 14037 Fight Officer used hands-on control techniques to restrain, arrest, & transport a combative person that attempted to flee. 08 03-25 14555 Fight Officer used hands-on control techniques to restrain, arrest, & transport a combative person. 38 03-28 15230 Assault 60 03-30 15447 Intoxicated Officer used hands-on control techniques to Person arrest & transport a resistive person. 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IP~ ,y.' ._~ ...:1 1~ , (Copy provided by Council Member Correi~) Page 1 of3 0<;-2.'-/-07 :r;p/f Marian Karr From: Pope, Carla [IFA] [Carla.Pope@iowa.gov] Sent: Wednesday, May 16, 20071:00 PM To: Charlie Eastham Cc: Stephen Long; Andy Johnson; THF; .City Council; jerry-anthony@uiowa.edu Subject: RE: Request for Comments on 2008 L1HTC Qualified Allocation Plan (QAP) Thank you for your comments. We will be reviewing each comment that we receive. Carla Pope Director, Affordable Rental Production Iowa Finance Authority 2015 Grand Avenue Des Moines, IA 50312 Toll Free 800.432.7230 Phone 515.725.4900 Direct Line 515.725.4921 FAX 515.725.4901 carla.pope@iowa.gov www.iowafinanceauthority.gov ---nOriginal Message----- From: Charlie Eastham [mailto:eastham@mchsLcom] Sent: Wednesday, May 16, 2007 12:41 PM To: Pope, Carla [IFA] Cc: Steve Long; Andy Johnson; THF; council@iowa-city.org; jerry-anthony@uiowa.edu Subject: Re: Request for Comments on 2008 LIHTC Qualified Allocation Plan (QAP) Carla, Thank you for creating an opportunity to comment on the 2008 QAP early in the drafting of this year's plan. I was not able to attend the ICN sessions so I am submitting these comments directly to you. Briefly stated, in my view the 2007 QAP, specifically Section 6.3, is not well aligned with the actual affordable housing needs of low-income people in Iowa City and Johnson County nor does the QAP accommodate the stated preferences for types and distributions of affordable rental housing of local governmental bodies. In Iowa City there is a substantial need for rental housing for small related households. The City Steps 2006-2010 Consolidated Plan shows that the greatest need for rental housing is housing for small related households having incomes of 0-30% of the MFI. The plan shows an estimated need of 971 units for small related households and only a need of 145 units for large related households. Table 11.1 of City Steps 2006 shows that 75% of renting households with incomes <30% MFI and cost burdens >30% were small related (2-4 members), while only 11% of households in the same categories were large related. Finally, the Iowa City Housing Authority Housing Choice Voucher waiting list as of February 28, 2007, shows that 30 % of applicants qualify for a 2 bedroom home while only 13% of applicants will need a 3 bedroom home. Although there is a well documented need for smaller number of bedrooms rental housing in this area, the 2007 QAP only provides a scoring preference for 3-bedroom homes (Section 6.3.1.4). 5/16/2007 Page 2 of3 The City Steps Consolidated Plan states that "available funding is the most apparent obstacle" to meeting the need for affordable rental housing. It notes that "most of the services that are needed by low-income personas are available in Iowa City". The experience ofThe Housing Fellowship has been that many if not most home renting lower income households are capable of addressing their family needs without outside assistance after their housing situation is stabilized. The 2007 QAP contains provisions preferring projects that include supportive services for special needs populations. However, it does not include additional scoring criteria for developments that meet the general need for affordable rental housing of the majority of low-income families. The Iowa City Council has adopted policies that restrict the location of rental housing assisted with locally allocated CDBG and HOME funds to census tracts containing less than a threshold ratio of publicly funded rental housing. By adopting this policy and through other actions on the part of the Council there has emerged a clear preference for the development of additional affordable rental housing in Iowa City in single family, duplex, or limited townhouse configurations and occurring only at a limited rate in approved areas of the City. Meeting the housing needs of low-income families in this developmental environment will require close cooperation between state and local funders. The location related scoring criteria in Section 6.3.3 of the 2007 QAP do not seem to be applicable to the scattered development of single family, duplex, and townhouse rental homes in separate subdivisions that is the clear locational preference of governmental bodies in this area. It is also not obvious how a scattered site proposal could receive any points under Section 6.3.1.2. Through the experience we have gained in developing and managing some 130 units of affordable rental housing over the past 17 years in this area we have become familiar with both the rental housing preferences of lower income families and the preferences and opinions of local elected officials as to how to develop additional rental homes. We believe that we have built a productive working relationship with local government which has resulted in the use of financial and other resources in a manner that generally satisfies everyone's goals. Unfortunately there does not seem to be a similar working relationship between local government and the Iowa Finance Authority. The tax credit allocation plan in recent years has not taken into account the opinions and ideas of both local governments in Johnson County and local low-income families. Hopefully, that will start to change beginning this year. I will be happy to address your questions at any time. Charlie Eastham President, Board of Trustees The Housing Fellowship 322 E. 2nd Street Iowa City, IA 52240-6036 319358-9212 ----- Original Message ----- From: Pope. Carla [lFAl To: Pope. Carla [IFAl Cc: Mills.Bret [lFi\.l; Smith~JamesJJE81; Ihgmpson~.Mark [If!',! Sent: Thursday, May 03, 2007 2:28 PM Subject: [Norton AntiSpam! Request for Comments on 2008 L1HTC Qualified Allocation Plan (QAP) Dear L1HTC community and interested parties, In the past, IFA invited several individuals to participate in an advisory committee on the OAP. This year, in lieu of the advisory committee, we are asking all who are interested to submit comments in advance to the IFA staff drafting the 2008 OAP. Once drafted, the OAP is submitted to the IFA Board for initial approval at the June 6 Board meeting. Following the board meeting, the QAP goes through the rule making 5/16/2007 Page 3 of3 process, including an official public comment period. It was my experience during last year's public comment period that many good suggestions were made for revisions to the QAP, however, if substantive changes were made at that time, the L1HTC application date would have been delayed. Therefore, it makes more sense for IFA to collect as many public comments and ideas prior to the development of the QAP so that if substantive changes are warranted, we can do so. So here is your opportunity! To refresh your memory, the 2007 QAP is located on the IFA website at http://WW\IV~iO\NafiO;:locf3_<luthQ[itY'-gov/~QCument~!fjnaI2QQI~AP ,~toc ICN CONFERENCES: We are in the process of finalizing the times and locations for ICN conferences. Tentatively the dates are May 15 and/or 16. The format will include two 2-hour sessions, with an agenda for each session recommending possible topics for discussion. Please watch your email during the next week for the schedule of these meetings. WRITTEN COMMENTS: In addition, all are encouraged to email ideas, in the form of an email or Word document attachment, to my attention by 3:00 p.m. on Wednesday, May 16. I can't wait to hear your thoughts and ideas! I know that together we can create an allocation plan that truly benefits the low-income people of Iowa. Carla Pope Director, Affordable Rental Production Iowa Finance Authority 2015 Grand Avenue Des Moines, IA 50312 Toll Free 800.432.7230 Phone 515.725.4900 Direct Line 515.725.4921 FAX 515.725.4901 car1a.pope@iowa.gov www.iowafinanceauthority.gov 5/16/2007 AGENDA City of Iowa City City Council Economic Development Committee Tuesday, May 29,2007 10:30 a.m. Commerce Center - 325 East Washington Street Large Conference Room 1. Call to Order 2. Approval of Minutes from Apri16 and Apri112, 2007. 3. CDBO Economic Development Fund Applications a. Extend the Dream Lease b. Extend the Dream Property Acquisition c. La Reyna Working Capital d. Discerning Eye Working Capital 4. Dowhtown Market Niche Analysis - Consultant report 5. Staff time 6. Committee time 7. Adjournment { MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE April 6, 2007 LOBBY CONFERENCE ROOM Preliminary Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: None Staff Present: Wendy Ford, Karin Franklin Others Present: Mark Nolte (ICAD Group), Gigi Wood (Corridor Business Journal), Tom Brandt (PSO), Nancy Ouellhorst (Iowa City Area Chamber) CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 9:30 a.m. PreD SDorts Online ADDlication for CEBA and HOJC funds throuQh IDED Ford indicated that she was approached by Joe Raso of ICAD regarding the possible headquarters relocation by Prep Sports Online (PSO) to Iowa City. Tom Brandt, a representative of PSO, introduced the company founded by Nile Anderson to help fund high school athletic programs. Part of the company is a not-for-profit organization which provides money to participating schools via website marketplaces created at no cost to the schools by PSO. The company generates its revenue through advertising, content licensing, and multimedia sales. Participating schools benefit from a revenue sharing program. Elliott asked what percent of the revenues goes to the schools. Brandt was unable to give an exact percent as each school varies some although he estimated that about 11 % of the revenues would go back to schools. Bailey asked how the amount the schools receive is determined. Brandt responded that it is through the individual agreements, but each school is guaranteed $2,500. He added that next year the non-profit side of the company will have need-based funds that can be applied for. Bailey asked about the corporate structure of the company. Brandt responded that they are a LLC; previously the not-for-profit was PSO, now it will be Prep Sports Foundation retaining the same structure just with a new name. Bailey asked for clarification from Brandt on a third revenue source - multimedia sales. Each school would have their own online store where people can purchase uploaded images; schools receive 15% of the revenue from those sales. Bailey asked how proprietorship over the images of athletes is handled. Brandt responded that they own the rights to the images as designated in the contract; this is similar to how newspapers own the rights to images taken and printed. Franklin asked about the plan for collateralizing the requested $100,000. Brandt responded that they will obtain an irrevocable letter of credit. Bailey indicated that the projection for job creation and salaries is rather ambitious which was echoed by Champion. Because a loan would be contingent on those projections, they wanted to know if the projections were feasible. Brandt indicated that they spent a lot of time setting up their model and that they are often told that their program sounds too good to be true. The model is based on what PSO believes to be necessary to set up the minimum of 500 websites they are committed to. The headcount and salaries in the application would be based in Iowa City. Bailey asked who PSO's major competitors are. Brandt indicated that PSO does not have any major competitors in part due to the strength of their Foundation and the value that schools find in ,. Council Economic Development Committee Attendance Record 2007 Name Term 1/23 2/09 2/20 2/27 3/06 3/12 4/06 Expires Regenia Bailey 01/02/08 X X X X X X X Bob Elliott 01/02/08 X X X X X X X Connie Champion 01/02/08 X X X X X X X Key: X = Present 0 = Absent OlE ~ Absent/Excused Absent/Excused MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE April 12, 2007 LOBBY CONFERENCE ROOM Preliminary Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: None Staff Present: Wendy Ford Joe Raso Others Present: RECOMMENDATIONS TO CITY COUNCIL: Champion moved, Elliott seconded that the committee recommends to the council the support of an application on behalf of Prep Sports Online for funding from the Iowa Department of Economic Development's Community Economic Betterment Account funds and a local match. Motion carried. CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 10:04 AM. Prep Sports Online Application for CEBA and HQJC funds throuah IDED Raso gave an overview of the application. Prep Sports Online contacted Raso 6 - 8 weeks ago considering locating headquarters in Iowa City. Real estate in Iowa City is considered better than other regions company is considering and there is a strong desire to be located near the University of Iowa. The nature of the project is noted in the appiication. Elliott asked how long the tax credits from the state would be for. Raso explained the credits are determined by hard assets, not working capital; and are formula-based and would yield 1-7% of qualifying investment on a one time basis which must be applied to the firm's State corporate tax liability. The High Quality Job Creation Credit is not yet determined. Kirkwood may sell bonds to fund the creation of a job training program for Prep Sports Online provided that jobs are created; this program has been in place for 23 years or so. If the company were to leave before bonds are paid off, a skilled workforce would remain. 79 jobs are expected to be created with the locating of Prep Sports Online within three years. Bailey asked for clarification on whether the agreement is for 79 jobs after three years or some increasing scale up to 79 in year three. Raso indicated that the State requires that the jobs be created within three years, they do not monitor year to year for employment number targets. At the end of those three years, if those jobs are not created, the State may consider circumstances and may extend contract by 12 months or prorated paybacks. Bailey asked why this company is looking to locate in Iowa City given that the capitalization here is relatively small. Raso pointed out that Lear Corporation and Procter and Gamble have good access to capitalization and yet located in Iowa City. Bailey expressed the sense that Economic Development groups get criticized for awarding incentives to businesses that do not need them. Champion responded that such requests are a matter of competition. Bailey asked why this firm would want to locate in Iowa City with its higher cost of living and lower unemployment. Rasa commented that he asked the firm's representative this as well, why Iowa City and not Chicago or Los Angeles or some other media center. The rep responded that there is an image that Iowa and further Iowa City conveys on the business that is desired. Elliott Council Economic Development Committee Attendance Record 2007 Name Term 1/23 2/09 2/20 2/27 3/06 3/12 4/06 4/12 Expires Regenia Bailey 01/02/08 X X X X X X X X Bob Elliott 01/02/08 X X X X X X X X Connie Champion 01/02/08 X X X X X X X X Key: X ~ Present 0 = Absent OrE ~ AbsentfExcused AbsentfExcused INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION- PROPERTY ACQUISITION Business Proposed: Extend the Dream Foundation (EDF) requests funding to purchase a property they currently lease at 2218-20 F Street to house two micro-enterprises. Currently the property houses Mick's Workshop, an antique furniture refinishing and wood working shop that is run by a person with disabilities. Applicant also proposes to initiate a new business called RAMP UP that provides design and construction of minor renovations in homes and apartments for low-income disabled persons and for the elderly. Applicant currently pays $1,200/month to lease the proposed property. With a forgivable loan and a partial private loan, applicant estimates their mortgage could be reduced to $350/month. Budget & Private Financial Contribution $99,000 Iowa City CDBG forgivable loan (no repayment unless sold or in default) $50,000 Private lender loan (30 year loan - 7.5% interest rate) $6,000 Applicant contribution to upgrade the property Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CC-2 zone (community commercial). Applicant proposes to upgrade an existing property that needs rehabilitation. CITY STEPS notes a high priority for employment training and education skills and micro-enterprise assistance. The focus at EDF is on improving the lives of persons with disabilities through employment training and ownership opportunities. Quality of Jobs The project is an eligible activity under economic development as it provides financial support for the establishment, stabilization and expansion of one existing micro-enterprise and will create one additional micro-enterprise. (A micro-enterprise is a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise.) Mick's Workshop has one owner and RAMP UP will have a volunteer coordinator with independent contractors. None of the persons identified in the application are employees, each is considered 1099 subcontractors. Economic Impact The proposed CDBG funds will assist a non-profit agency stabilize and expand a property that will incubate micro-enterprises. All the businesses are operated by persons with disabilities. May 2007 Environmental/Community Involvement EDF provides opportunities for businesses and also works to enhance the incomes of persons with disabilities. In addition to operating six potential micro- enterprises at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates an e-commerce center that trains persons with disabilities to buy and sell products on the internet to expand into home based businesses. Extend the Dream has been working with several community partners through referrals for micro-enterprise or e-commerce training and hosting meeting spaces for organizations such as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services and STAR homeless outreach. Items to Address: 1. EDF is run entirely through volunteers. The organization has not had consistent financial management during its years in operation. EDF must have a financial system that provides control and accountability over funds and assets, identifies the source and application of federal funds, provides source documentation, has basic accounting records, and ensures an adequate separation of financial duties. EDF has worked to resolve some of these issues; however the organization must incorporate a financial management system operated on a long term basis that will meet federal minimal standards. 2. Zoning Issues: The home on the property is a non-conforming, single family property in a commercial zone. The home has a rental permit with an active tenant; last housing inspection was 4/11/2007. The application did not reference the property as a rental unit. The property can be changed to a commercial use; however it may involve substantial upgrades to bring it up to commercial standards. The work required to bring the property to code would be subject to Davis Bacon (prevailing) wages. If conversion of the property to a commercial use occurs and the tenant is displaced, then Uniform Relocation Assistance requirements would apply. If the applicant maintains the rental unit and operates the businesses in the workshop, then lead based paint regulations apply (the home was built in 1930). 3. EDF provides the financial management and accounting for Mick's Workshop. Uptown Bill's profit and loss statement, calendar year 2006, shows an annual net income of $33,231.40 in 2006. Does this contain the lease expense of $1,200 or tenant rent received? 4. Since this is an organization completely run by volunteers, please discuss a plan for succession if the director leaves the organization for any reason. May 2007 5. The applicant is a non-profit organization so technical assistance at the Small Business Development Center may be difficult to obtain. The organization may have to rely on donated financial management or through consultant fees. 6. COBG funds were used to purchase the building at 912 2nd Ave. (2203 F. Street) in 2005. A few items remain from the building permit issued in October of 2005 in regards to electric and riser height issues and must be reinspected. May 2007 Iowa City COSO Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual: Thomas Walz on behalf of the Extend the Dream Foundation Home Address: 915 E. Davenport St., Iowa City, Iowa 52245 Name of Applicant Business: Extend the Dream Foundation Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240 Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu DUNS Number (If awarded funds, applicant must obtain a DUNS number): 421465808 Type of Business Non-Profll: Incubator of Micro-Enterprises Owned and Operated by Persons with Disabilities. Date Business: Established 1974 (original coffee shop founded), current program (2001) Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank and Trust (e.g. Sackter House, Documentary, Escrow) and Hills Bank (Uptown Bills lee Cream and Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Halter Room, Vintage Shop/Micks Workshop, The Framery, Ramp, Inc, and the Workshop Account. NOTE: The City will not provide assistance in situations where it is determined that any representation, 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. Revised 11116106 1 Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: The project involves the purchase of a property (two buildings) at 2218-2220 F. St to house two micro-enterprises: Mick's Workshop and RAMP UP. The first of these specializes in furniture refinishing and antique restoration for the general public and the second specializes in the design and construction of minor renovations in homes and apartments for the low income disabled and elderty to help them improve the physical accessibility of their domiciles. In addition will provide some "chores" services may be offered to low income elderly persons and persons with disabilities.. The proposed purchase is attractively priced, the landlord has upgraded the building with new siding, a new heating plant and cooling plant. The building is located across the street from one of our other buildings (the Ecommerce Center at 2203 F St) and has a functional tie to the buildings to be purchased ( refinishing antiques for our vintage shop, frame making for the Framery and the shared use of equipment, office and storage space for the new RAMP UP micro enterprise). Another benefit is the enhanced value that can be expected from building through sweat equity upgrades (similar to what we did with the F street building across the street). 1.2. Provide a brief history of your company: The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee Shop on the U of I campus in 1974. Its current community based history began in 2001 with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of micro-enterprises owned and operated by persons with disabilities. In its early years Bill's Coffee Shop was operated by the International Bill Foundation until its 1999 merger with the Extend the Dream Foundation. 1.3. Describe the organizational structure of the business: EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of directors most of whom are notable local business, academic and community leaders.. EDF is administered by a retired experienced administrator volunteer and network of approximately fifty community volunteers. The financial management is handled by Executive Director with paid assistance through a service contract With Martene Perrin at Taxes Plus. The Board meets quarterty and the Executive Committee meets monthly. Other standing committees include: Community- University Relations, Futures and Planning and an Endowment Committee meet as needed. See Organization Chart. 1.4. Management Revised 11/16108 2 (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) - non-profit Name & Posltion/Title Complete Address % Owned Thomas Walz, Executive Director" 915 E. Davenport St, Iowa City Allan Young, Chairperson 3248 Hastings Ave, Iowa City Dale Hankins, Vice Chair Solon, Iowa Mercedes Bem-K1ug, Secretary 1803 CSt, Iowa City Charles Skaugstad, Jr, Chair, 602 S. Summit St, Iowa City Communty Relations Committee Dr. Phillip Jones, co-chair, 3201 Muscatine, Iowa City Endowment Committee David Maeglin, Treasurer, Chair of 20 N. Lowell St., Iowa City Finance Committee Jeff Larsen 2201 Dubuque Rd., Iowa City Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City Carol Fisher 1208 Guilford Crt, Iowa City Marilyn Austen Williamsburg, Iowa Barry Morrow Santa BaTbara, Calif. Josh Gersten 79 Primrose Crt, Iowa City Rev. Eugene Mathews 3113 Court 5t., Iowa City Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. Management Resume: Walz Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center, Mpls. 1959-61, Director Living Learning Center, U of Minn, 1964-68, Director of Community Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71), Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973- 78), Director of the U of I GerontOlogy Center (1977-81), Director of the Des Moines Graduate Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001. Dale Hankens, former Director of Training for Accenture (formerly Arthur Anderson) International Division, 20 years. Revised 11/16106 3 David Maeglin, President of Muscatine Storage (1994-2004), currently an international investor. Jeff Larsen, former owner of several Iowa City businesses, investor. Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years. 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another? No 1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No Revised 11115106 4 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to the nearest Activity hundreds) Land acquisition $ part of property New Construction/Expansion Repair $ Acquisition and/or Repair of Machinery $ and Equipment Inventory Purchase $ Working Capital Oncluding accounts $ payable) Acquisition of Existing Business $ All Other (provide description) - $ 99,000 property acquisition (two buildings) Total Loan Requested (All Sources): $ 149,000 2.2. Terms of Proposed Financing (Sources) Monthly Type{11 Proposed Financing Amount Payment Rate Term Financial $ Financial Institution @direct loan $ 50,000 Other: $ Iowa City CDBG Economic Dev. Fund $ 99,000 TOTAL: $149,000 (1lForgiveable loan requested".. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Financial assistance has been explored with Iowa State Bank and Trust and Hills Bank, both were supportive of the project and agreed to a loan of $50,000 (pending outcome of our other applications). A letter from Iowa State bank confirms their loan Revised 11/18106 8 willingness. We need to limit the direct bank loan to reduce costs of housing the two aforementioned micro-enterprises. A loan of $50.000 at prime would leave us with about $350 (monthly cash flow) mortgage payment over 30 years. Currently we are paying monthly lease payments of $1200 for this property. Revised 1111&/06 6 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. It is our intention to use our recent donations of $6,000 to immediately upgrade the property. This property (along with the building we recently purchased) had been neglected for many years to the point of impacting community appearances. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: Extend the Dream Foundation - underwrite cost of upgrades Iowa State Bank and Trust - provide a direct loan of $50,000 Economic DevelopmenVCDBG Council - provide a forgiveable loan of $99,000. 2.6. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. o Corporate Guaranty o UCC Financing Statement o Irrevocable Letter of Credit o Personal Guarantee o Surety Bonds X Mortgage on Real Estate o Escrow Account o Other: Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. We also own about 7,000 worth of equipment and materials that could be used as collateral. 2.7 . If the City did not provide financial assistance, could the project proceed? No, unless our Director wins the 2007 Purpose Prize for which he was a "finalist" in 2006. There are several prize winners to be selected whose organizations would each be given $100,000. It would be self-defeating even if conventional bank loans were available for the full amount since the mortgage payments would be no different than the lease payments. With our partial rent subsidy from the City for our downtown small Mall project completing its sixth and final year, we woulc:l not be able to handle the current lease levels for both sets of property from micro enterprise earnings supplemented by our savings for very long. Section 3: Jobs to Be Created/Retained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51% of the Jobs created or retained must be held by or made available to low- moderate Income persons. The business acknowledges that " It fails to create and/or retain the Jobs Identified below by the end of the project period and maintain them for a Revised 11/18108 7 period of ttme (usually 12 months from the date of the award); it may be required to reImburse City funds for the employment shortfall. 3.1 If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. Micks Workshop - 2 full handicapped employees, 2-4 independent contract workers. RAMP UP - estimate one half time coordinator, 2-4 independent contract workers. None of the above are employees, each are 1099 sub-contractors. 3.2 Complete the following chart identifying the number of jobs to be created andlor retained based on this specific project. Type of Job and Hourly Rate for Created andlor Retained Positions in First 12 Months of Project Award (please see attached Job Category Definitions) Hourly # of Jobs # of Jobs No. Hours Rate of Pa Fringe Created Retained TVDe of Job Per Week v Benefits" 1 1 Officials & Managers #1 60, #2 20 Open nla Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) 2 nla Operatives (semi-skilled) Laborers (unskilled) 6-8 $10-12hr nla Service Workers "If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? Difficult to estimate since one of the projects will be just starting out. Hourly rate will be approximately $15/hr on a project by project timetable. The RAMP UP coordinator will be a volunteer. 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: No Revised 11/16106 8 Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? Mick's Workshop is one of three furniture refinishing and repair shops listed in the yellow Pages, though we know of a few others like Knock on Wood that do essentially what Mick does. Mick's also does a variety of odd jobs for low-income persons with disabilities (e.g. we moved many elderly residents at the Ecumenical Towers during the construction of the new elevator and other type of chore services for persons who couldn't afford to hire at regular rates). The workers at Mick's also keep up our properties on F Street (mowing, snow removal, etc.) From our knowledge of local building contractors, the kind of "accessibility remodeling" at affordable prices that many low income handicapped and elderly are able to pay is hard to find. Most contractors are not interested in small scale projects of this type. The small home repair individuals take up some of the need, but there are without the expertise to assess and design what needs to be done. None of the local contractors have the knowledge of ADA standards held by Jordan Pettus, the owner (coordinator) of RAMP. 4.2. Please describe the energy and resource efficiency, waste reduction, waste exchange, and recycling programs at your Iowa City operation. We recycle all hazardous materials through the county facility at the landfill. One of our volunteers is a waste management specialist (engineer) and is planning to do a study of our facility at the end of April. Part of our intended building upgrade is to increase the energy efficiency of both of the buildings on the property we want to purchase. The Workshop building has just had a new energy efficient heating unit installed and siding added (as insulation as well as cosmetic improvement). Our upgrade will include replacement of windows and frames In the 2220 F St.storage facility. Both Mick's Workshop and RAMP UP will share the same furniture refinishing and small home repair equipment as well as an interchange of expertise. Mick has construction and masonry background and Jordan was construction and sheet metal worker until his accident. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. EDF and its micro-enterprises recruit, train and utilize a large number of volunteers annually (more than 100 different persons) per year, some of these will be involved in the Workshop and RAMP micro-enterprises. The new businesses along with the old sponsor the Ralston Creek Labor Day Fair and Flea Market entering Its sixth year with annual attendance of over 1000 persons). As noted many of the projects the two micro- Revised 11/1&106 9 enterprises will undertake will involve assisting persons who could not otherwise pay for such services. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). No 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. No 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. No Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [ x 1 Business plan (if start-up business) [ x 1 Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) [ xl Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [ xl 12 month cash flow statement (if the business does not expect to tum profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to tum profitable) [l Description of fringe benefits provided to employees, if applicable N/A [ x] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Jordan Pettus, Coordinator, RAMP - AA degree in architectural drafting, 20 years experience in the trades as a sheet metal worker and construction worker. Has a consulting firm thru which he proVides ADA consults for local developers on projects. Mick Vevera is the owner of Mick's Workshop (which operates financially as part Of the Vintage Shop. Mick has a high school degree, was in the masonry business with his father Bob Vevera for many years, was disabled in a fall, but has for the past six years worked as a subsidized volunteer for EDF until 2004 when wa helped him Revised 11/1&106 10 open his own shop. Revised 11/16/08 11 . ' [x] Please provide the social security numbers for all the persons listed under Management (Question #1.4) Mick Vevera - (] If an existing company, copy of the company's quarterly Iowa "Employers Contribution and Payroll Report" for the most recent quarter. N/A [] Construction loans only: Cost estimates for construction and a statement of the source of any additional funds [] Include a list of any machinery or equipment or other non-real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. None Upon review of a submitted application, the City reserves the right to request additional Information in order to assist the City with Its evaluation of an application. Release of Infonnation 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 representations, 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 developmentassistance from a state agency or political subdivision. If applicant is a proprietor or general partner, sign below. By: Date: If applicant is a Corporation, sign below: ~-~1~ #4D7 CO orate Nam and Seal Date By: Signature of Attested by: Signature of Corporate Secretary Revised 1111&106 12 10:00 AM Uptown Bill's 04l28,I07 Balance Sheet Cash Basis As of April 26, 2007 Apr 28, 07 ASSETS Current Assets ChecklnglSavlngs Bill's BookMart 2,847.24 Bill', Colfee Shop 5,912.53 BII'" Qocumentory 4,636.58 Computer Graphic' 355.94 Escrow 65,681.14 Extend The Dream Foundation 7,411.21 Framery 507.44 Mad Hatter Room -795.49 RAMP 39.75 Saclder House -182.50 Vinlage Shoppe 7,983.78 Workshop 547.11 Tolal Checking/Savings 94,954.63 TotalCunent~s 94,954.83 TOTAl ASSETS 94,964,93 LIABILITIES & EQUITY Liabilities Current liabilities Crodll Card, American Express 627.13 Total Credit Cards 627.13 Total Current Liabilities 627.13 Tolal Uabilllle, 627.13 Equity Opening 801 Equity 83,905.15 Retained Earnings 26.605.59 Net Income 3.816.96 TOlal Equity 94,327.70 TOTAL LIABILITIES & EQUITY 94,964.83 Page 1 -~ ~ 11:28 AM Uptown Bill's 04120107 Profit & Loss Cash Basis January through December 2006 Jan 06 Fob 06 M.06 Apr06 May 06 Jun 06 Jul06 Inc~t OR' 718,91 500,00 544,56 609.93 600,00 608.24 624,95 I 26,n5.05 16,nO.72 17,545.70 16,686.05 26,104.04 14,668.96 24,072.76 Totallncorne 27,493.96 17,270.72 18,090.26 17 ,295.96 26,704,04 15,2n.2O 24,697.71 Expense Account Expense -74,00 85.11 0.00 0.00 0,00 0,00 0,00 AD 43.74 0,00 148.70 189.25 0,00 15.00 17.75 Auto 0.00 319.48 220.11 0.00 0.00 0.00 0.00 C 616.95 657.14 638,00 520.13 765.93 506.41 696.99 car purchase 0.00 0.00 0.00 0.00 0.00 0,00 0,00 CC 350,00 500.00 350.00 600,00 600.00 600,00 600,00 FC 8.13 3.49 8.08 8,97 9,63 9,71 10,88 Garbage 25.00 37.71 232.00 0.00 0.00 0.00 0,00 IN 2,902,31 3,991.97 3,337.00 327.55 327.55 0.00 606,55 Insurance 0.00 0.00 327,55 0.00 0.00 0,00 0.00 Intere., -0.21 -0.14 0.00 -0.22 0.00 0.00 0,00 IR l,n8.31 1,569.32 1,467.73 1,958.96 3,280.37 2,639,39 2,705.00 L 0,00 0,00 0,00 320,00 320.00 320.00 320,00 M 1,525.82 563,89 2.382.57 5.215.19 6,575.30 5,703.63 6,789,23 mise 167,20 61.50 403.41 0.00 0.00 0.00 0,00 OS 0.00 0.00 0.00 72.50 31.13 166,33 64.99 Parking 15,00 0,00 0.00 0.00 0,00 0,00 0,00 PAY 1,000.00 1,115,00 2,424.69 2,541.53 3,676.87 3,357,03 2,576,00 Payroll Expenses 1,997.50 2,135,75 1,856.76 0.00 0,00 0.00 0,00 POST 119.90 316,35 348.65 :100.92 229.75 =.53 264,66 R 4,292.00 8,492.00 6,567,00 2,49200 6,217.00 4,945.00 2,392,00 S,H, 0,00 0.00 0.00 0,00 0.00 0,00 0.00 S.H.Mort 250.00 500,00 250.00 0.00 0.00 0.00 0,00 S.H.OPER 200.00 425.00 200.00 0.00 0.00 0.00 0.00 Tax 0.00 0.00 0,00 0,00 0.00 0,00 0.00 U 925.65 949.79 631,07 140.53 1,351.94 1,081.61 1,647,67 UI work study 0,00 0.00 0.00 0,00 0.00 0,00 0,00 UI work study 0.00 0.00 0,00 0,00 0.00 0,00 0,00 Total Expense 16,163.50 21,743.36 22.191.52 14,766,31 25,365.67 19,569.04 16,913,92 Net Incorne 11,330.46 -4,472.64 -4,101.28 2,509.67 1,316.37 -4,261.84 5,763.79 Page 1 ......; '~ 11:28 AM Uptown Bill's M'2OJ07 Profit & Loss Ca.h Ba.I. January through December 2006 Aug 06 Sep06 Oct 06 Nov 06 Dee 08 TOTAL Income CR 738.11 795.53 800.00 0.00 0.00 6,540.23 I 21,630.68 30,111.72 32,035.62 25,660.41 19,957.04 272,216.95 Tota' Income 22,568.99 30,907.25 32,835.62 25,660.41 19,957.04 278,759.18 Expense Account Expense 0.00 0.00 143.91 0.00 32.50 167.52 AD 197.27 167.53 415.19 267.42 190.00 1,649.85 Auto 0.00 0.00 981.44 0.00 0.00 1,521.03 C 793.31 700.54 1,535.01 1,149.30 1,055.12 10,034.83 car purchase 0.00 0.00 0.00 600.00 0.00 600.00 CC 700.00 775.00 800.00 450.00 468.65 8,793.85 FC 11.04 8.71 11.63 0.00 0.00 90.45 Garbage 0.00 0.00 59.75 59.75 59.75 473.96 IN 567.89 221.00 1,238.01 4,440.00 2,650.79 20,612.62 Insurance 0.00 0.00 655.13 327.57 59.48 1,369.71 Interest 0.00 0.00 0.00 0.00 0.00 ~.57 IR 2,181.96 1,917.24 1,941.45 0.00 0.00 21,439.73 L 320.00 320.00 0.00 0.00 0.00 1,920.00 M 5,022.53 7,682.26 2,068.77 577.68 79.23 44,206.30 mise 0.00 0.00 250.85 748.75 166.45 1,818.16 OS 15.98 133.87 0.00 0.00 0.00 486.80 Parking 0.00 0.00 0.00 0.00 15.00 30.00 PAY 3,309.50 3,418.75 2,532.50 1,198.98 2,288.77 29,439.62 Payroll Expense. 0.00 0.00 1,635.00 1,076.75 6,918.34 15,620.10 POST 263.46 237.81 273.94 124.29 0.00 2,841.48 R 8,292.00 6,667.00 3,881.50 4,867.00 2,467.00 63,571.50 S.H. 0.00 0.00 225.00 425.00 495.00 1,145.00 S.H.Mort 0.00 0.00 250.00 . 500.00 500.00 2,250.00 S.H.OPER 0.00 0.00 0.00 0.00 0.00 825.00 Tax 0.00 0.00 0.00 600.00 200.00 800.00 U 1,248.00 1,501.38 1,639.21 1,515.63 2,444.96 15,276.04 UI work study 0.00 0.00 143.75 0.00 0.00 143.75 UI Wort< study 0.00 0.00 381.25 0.00 0.00 381.25 Total Expense 22,940.94 23,751.09 21,063.29 18,928.12 20,091.02 245,527.78 Net Income -371.95 7,166.18 11,772.33 6,732.29 -133.99 33,231.40 Page 2 PROFIT AND LOSSES 2006-2007 EXTEND TIlE DREAM FOUNDATION MICK'S WORKSHOPNINT AGE SHOPPE Month Expenses Revenues 06 Aug $5,229.51 $5,307.85 Sept $4,086.81 $4,392.63 Oct $5,166.66 $5,017.63 Nov $5,08454 $6,219.40 Dec $3,501.93 $5,156.43 07 lan $8,267.81 $4,440.97 Feb $4,413.81 $3,425.46 Mar $3,860.45 $4,78555 Total $39,611.52 $38,745.55 Revenues minus expenses+ -$865.60 RAMP (new business start up scheduled for March I") Total of $140 expenses for administrative start up; no revenue. . BUSINESS PLAN 2007 RAMP UP Description: the following business plan addresses a start up micro-enterprise called RAMP UP. RAMP was accepted as a non-profit start up enterprise on January 1'\ 2007 under the Extend the Dream Foundation. It is officed at 2203 F St. in the EDF Ecommerce Building and works out the properties across the street 2218&2220 F S1. The mission of RAMP is provide design, consultation and construction services for improving the accessibility ofthe domiciles oflow-income handicapped and elderly or buildings frequently used by them. Staffing Plan: RAMP will be coordinated ("owned") by Jordan Pettus, a person with disability and a background in architectural drafting and design. He will be assisted by Mick Vevera (owner ofMick's Workshop) and other sub-contract employees (1099's) on a project by project basis. To the extent possible all persons associated with RAMP will be low-income, handicapped or elderly retired. Management Plan: RAMP will have its own checking account at Hills Bank and will be the sole determiner of the projects it accepts. The accounting and fiscal management of the enterprise will be handled by the parent EDF organization. The insurance liabilities of projects will be subsumed under the EDF comprehensive plan that covers all entities managed by EDF. RAMP will work with an advisory committee of representatives from EDF board, Elderly Services board, the Johnson County Coaltion on Disability and a like representative from a local consumer aging group. RAMP has successfully applied for a Federal contractors license and is currently applying for a state license (both are needed to do business with Federal agencies, such as the VA ofIowa City). Projected Work Flow: in its first year, RAMP anticipates responding to approximately one request a month with about 30% requiring some construction follow through (two referrals in late 2006 from the VA ofIowa City are pending). The other 70% will involve some household rearrangements, minor changes in lighting or design and estimates of more major modifications (e.g. addition ofa ramp). These projects will be invoiced at an average of $15-20 per hour with an understanding that pro bono services may often be expected. Design services will be carried out exclusively by RAMP's owner, Jordan Pettus. Minor construction services will be handled through a sub contract with Mick's Workshop, major construction services will be handled through small scale local contractors working under the general contract supervision of RAMP. Marketing: RAMP intends to grow slowly during its first year. The principal marketing will be through referrals from EDF and Elderly Services. A pampWet describing the program will be produced and distributed through a variety of local sources (e.g. senior . center, Independent Living, etc.) Later in the year a feature article will be arranged with the local press. Budget Summary: RAMP will operate out of its own checkbook. Start up capital of $150 (from EDF) was used to open the account. A grant application to the Mary 0 Cauldron fund requesting $7000 start up capital was submitted. In the interim, EDF will use its internal resources to support small projects. RAMP will have no rental obligations for either its office or work space, until it is fiscally able to contribute. The owner will work without pay as a volunteer until financial developments allow a profit share. Expenses and Revenues: it is estimated that after a ninety day start up, by April 1 st, RAMP can expect a cash/expense flow of $10,000 annually. Annual expense breakdown: * Rent and equipment...... ... ." ... ... ......... ......... ... ... ...... ... ...00 . Transportation............................................................ .00 Office supports (consumables, telephone)... ........................ ..00 Project supplies..................... ............ ... ............... ...... .$4,000 Project sub contracts... ... .. ............ ........ ..................... $6,000 Total $10,000 . Most of the actual cash flow and revenue will come via a major contract to build ramp(s) for veterans (one already approved at $5000). Annual Revenue breakdown: Service fees from projects........ .............................. Grants and loans - EDF ...... ... ..' ...... ...... ............ ...... Mary 0 Cauldron... ......... ............ ... .. ... ...... ...... ... ... .. $.6,000 $ 1,000 $ 3,000 $ 10,000 Total l BUISNESS PLAN 2006-2007 MICK'S WORKSHOP STAFFING PLAN 1. Ownership will remain as before, Mick Vevera is the owner. His staff includes one regular part-time worker (JW) and several on-call independent contract workers (LW, BB, JC, JV). 2. EDF Executive Director will provide oversight and will be responsible for inventory purchases and approval of chore service requests. PROJECTED WORK FLOW I. Eighty percent of activity will involve refinishing and repairing furniture, mainly antiques. 2. Ten percent of activity will involve chore services ("small home repairs)".. 3. Ten percent of activity will involve "buying", assessing, securing voluntary contributions of in-kind donations. 4. The above activities combined will require 100 hours of paid or voluntary work weekly. .. - MARKETING I. Regular ads will be placed in local newspapers associated with monthly summer yard sales and special events (the Ralston Creek Fair and Flea Market). 2. Signage will be redesigned and placed 0\1 lawns of2220 & 2203 F Street noting the workshop hours and activities. 3. A link to Mick's Workshop will be designed for the new Uptown Bills website (uptownbills.org) BUDGET SUMMARY I. Mick's Workshop is fiscally a part of The Vintage Shoppe (operate out of one checkbook). It is anticipated that the combined micro enterprises will maintain an average monthly revenue flow of$5000/month for 2006-2007. Total Income...,........ $60,000 2. Expenses for this calendar year include: a) consumable supplies.................................... $1800/mo or 21 ,600/yr b) inventory replacement ................................. $600/mo or $7,200/yr c) transport (gas, insurance, repair). . . . . . . . . , . . . . . . . . . . . $200/mo or $2400/yr d) stipends and sub contracts................................ $lO,OOO/yr r e) lease payments and utilities (based on current lease) $18,000/yr Total Expense............ $59,20 PROJECTED DEVELOPMENTS I. Prepare CBDO public facility grant \request $99,000) to buy the property (two buildings at 2218 and 2220 F St.1 2. Pursue bank loan with local bank to cbmplete financing ($50,000) of the purchase price of$149,000. An earnest money contract to buy the building will be signed shortly (Feb., 2007). 3. If the property is purchased, $6000 donation in the escrow account will be used to cover costs of the energy upgrade of both buildings on the property. Some cosmetic improvements (e.g. would be carried out as well). - Uptown Bill's Projects Annual Financial Summary 2005-06 . $2,99330 II $59,448.81 .$5,094.19 III EDF * . Coffee Shop 0$1,758.75 o Bookmart o Computer Graphics 0$23,248.84 . Mad Hatter Room 1I!ll$300,57019 tI Vintage Shoppe . ECommerce Services .$33,616.99 . There was a grant for $198,000 and a loan for $49,000, adding up to $247.000 Both transactions were made on Juiy 1,2005. > EDF Monthly Financial Summary 2005-06 ~EDF $250,000.00 r '--------- -- ---_.- - -- i i b;~4,t7 i $200,000.00 ---~-_._-_._------_.~-----_..._-------_.__..._-- -- -_._----_.~------------_..- ----- - -----~_.- $150,000.00 ---------~_.----- ----~_.._- -_.----_._----~.._-_. -------.---------..---.------- - --------~----._- $100,000.00 _._- --"-----.'-----.- ------- , $50,000.00 ----,_._._-_._.._--_._~_._._-_._-- ~-_...~. .--- -----------~--'-- . . V,283.43 $10,&21.91 $5,862.20 $8,591,&9 $13',135,21 $&,&35.93 $3,155139 $11,362.56 $5,831.52 i $0.00 mi1l fIR fl!'1"'I ~ III ~ == III * Jul Aug Sep Oct Nov Dee Jan Feb Mar Apr May Jun ----------- . There was a grant for $198,000 and a loan for $49,000, adding up tp $247,000 Both transactions were made on July1, 2005, . r - ____ _,____'__ ----- n__~__________ --- --- -- -- - ---------- -- . ------ --- -- - Vintage Shoppe Monthly Financial Summary MtC. k.S"t uJD~.j$ftOP 2005-06 - ____.,,______m___ ---- III Vintage Shoppe ______ - _,__ _n $7,000.00 .. -- --- --- --~- --,,---",,- - -~--~- __n $6,000.00 $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 . $0.00 Jul Aug Sep Oct Nov Dee Jan Feb Mar Apr May Jun --------_._---~------ - - - - M "_n_ .. ... _.- ...,"~.~.,.,.. . .'~' r- THE BILL SACKTER FOUNDATION Mission Statement: To provide employment opportunities and social support for persons with '; disability and public education on the economic and social needs ofthose with disabilities. .: ~ Organizational Chart . THE BILL SACKTER FOUNDATION , i 501 C-3 NON-PROFIT ORGANIZATION ., Policy Board 14 BSF-Board of Directors Executive Director T. Walz , r------, Uptown Bill's Small Mall I Wild Bill's L Uptown Bill's Mick's Funk Grove . I CQffee Shop I - 401 S. Gilbert Street E-Commerce Workshop Lawn & Garden , North HaIlI I . Center 2018 F Street .L~.E.ofIo~_J Uptown Bill's Coffee Shop 2203 F Street Bill's Book~ The The Madhatter Room Vmtage Shoppe EDF Board of Directors , Mr. Ed's SuperGraphics The Framery ~an Young Barry Morrow Dale Hankins Josh Ger.;ten light strok;,a square - University onowa building Mercedes Bern-Klug McKenzie Cook dark squares - building;l owned or leased David Maeglin Jeff Larsen darkro~-square -limited mgt. responsibilty Carel Fisher Marilyn Austen light .illp,1ari:S. ,. miao-businesses Charles Skaugstad Eugene Mathews li~ilCi.GW~n - onl The E-Conunerce Jeff portman ..,. .... ... program Y . ':< .'.,-f.::~~~'1~~.ti.?;~ - ~ Training PrograI!! Phillip Jones INITIAL REVIEW OF EXTEND THE DREAM FOUNDATION - LEASE Business Proposed: Extend the Dream Foundation (EDF) requests funds to partially fund the lease at 401 S. Gilbert Street (Uptown Bill's Small Mall). Uptown Bill's Small Mall houses four micro-enterprises operated by persons with disabilities: Uptown Bill's Ice Cream and Coffee Bar, Bills Bookmark, The Mad Hatter Room and Mr. Ed's Super Graphics. CDBG funds have assisted this location since 2001. $106,750 was provided for' the first three-year lease and $60,000 was provided for the subsequent three- year lease. The applicant anticipates a $10,000 deficit for the 2007-08 lease. Budget & Private Financial Contribution Applicant is requesting funds to meet the one year lease cost of $40,200: $20,200 EDF micro-enterprise earnings $10,000 Johnson County $10,000 City of Iowa City CDBG funds Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CB-5 zone (central business support). CITY STEPS notes a high priority for employment . training and education skills and micro-enterprise assistance. The focus at EDF is on improving the lives of persons with disabilities through employment training and ownership opportunities. Quality of Jobs The project is an eligible activity under economic development as it provides financial support for the establishment, stabilization and/or expansion of micro- enterprises. (A micro-enterprise is a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise.) There are no employees as each person is considered an owner or a 1099 subcontractor. Economic Impact The proposed CDBG funds will.assist a non-profit agency stabilize and retain a property that will incubate micro-enterprises for persons with disabilities. Environmental/Community Involvement EDF provides opportunities for businesses and works to enhance the incomes of persons with disabilities. In addition to operating six potential micro-enterprises at Uptown Bill's Small Mall and at 2203 F Street, EDF also operates an e- commerce center that trains persons with disabilities to buy and sell products on the internet to expand into home based businesses. May 2007 , Extend the Dream has been working with several community partners through referrals for micro-enterprise or e-commerce training and hosting meeting spaces for organizations such as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services and STAR homeless outreach. Items to Address: 1. EDF is run entirely through volunteers. The organization has not had consistent financial management during its years in operation. EDF must have a financial system that provides control and accountability over funds and assets, identifies the source and application of federal funds, provides source documentation, has basic accounting records, and ensures an adequate separation of financial duties. EDF has worked to resolve some of these issues; however the organization must incorporate a financial management system operated on a long term basis that will meet federal minimal standards. 2. The balance sheet does not contain any fixed assets under the Assets category. CDBG funds were used to acquire 912 2nd Ave. (2203 F. Street). The purchase price was $245,000 ($122,000 CDBG conditional occupancy loan, $75,000 HOME no interest loan, $48,000 private lender/owner equity). All fixed assets should be included in the balance sheet as well as their corresponding liability. Profit and loss statement for Uptown Bill's shows an annual net income of $33,231.40 in 2006. 3. Since this is an organization completely run by volunteers, please discuss a plan for succession if the director leaves the organization for any reason. 4. EDF provides the accounting and fiscal management for the businesses incubated at Uptown Bill's Small Mall. Individual profit/loss statements and cash flow statements were not provided. There is a profit/loss statement for Uptown Bill's for the 2006 calendar year. 5. The applicant is a non-profit organization so technical assistance at the Small Business Development Center may be difficult to obtain. The organization may have to rely on donated financial management or through consultant fees. May 2007 ,\ Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual: Thomas Walz on behalf of the Extend the Dream Foundation Home Address: 915 E. Davenport St., Iowa City, Iowa 52245 Name of Applicant Business: Extend the Dream Foundation Full Street Address of Business: 401 S. Gilbert St., Iowa City, Iowa 52240 Phone Number & Email Address: 530-8765 (or office 339-0401), thomas-walz@uiowa.edu DUNS Number (If awarded funds, applicant must obtain a DUNS number): 421465808 Type of Business Non-Profit: Incubator of Micro-Enterprises Owned and Operated by Persons with Disabilities. Date Business: Established 1974 (original coffee shop founded), current program (2001) Bank of Business Account and Address (if applicable): Accounts are divided between Iowa State Bank and Trust (e.g. Saclder House, Documentary, Escrow) and Hills Bank (Uptown Bill's Ice Cream and Coffee Bar, Bookmark, Mr. Ed's Super graphics, Mad Hatter Room, Vintage Shop/Mick's Workshop, The Framery, Ramp, Inc, and the Workshop Account. NOTE: The City will not provide assistance in situations where it is determined that any representation, 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. Revised 11/16/08 1 't Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: The project involves the retention of jobs for persons with disabilities associated with four micro-enterprises co-located in the small Mall at 401 Gilbert St. The "jobs" include four handicapped persons as (4) owners of small businesses and (11 ) persons who work with these owners (along with some able volunteers) in operating their shops and programs. The four micro-enterprises include: Uptown Bill's Ice Cream and Coffee Bar, Bills Bookmark, the Mad Hatter Room and Mr. Ed's Super Graphics. The request is for some partial continuation of the CDBG subsidy for rent and utilities at their 401 location to help these owners meet the rising costs of rent and utilities. In addition to protecting their own jobs, this downtown location is crucial to accessibility of both employment and social support by a large number of disabled and elderly persons who live in the downtown area and the Ralston Creek area where the small Mall is located. For the first three years (2001-2004) the Extend the Dream Foundation received full subsidy for the rent and utilities at 401 S. Gilbert; from 2004-2007 EDF received 50% of the rental costs, while bearing the other 50% rent and all of the utilities. EDF has attempted to pay as much of the operating costs as it can from the micro enterprise earning profits. In our projected 2007-2010 budget, we believe we will experience a shortfall of $10.000 per year in meeting our rental costs. It is this amount that we are requesting from the Economic Development funds to meet the deficit. In anticipation of the end of the previous CDBG subsidy, we sought grant support from Johnson County and community support from two student groups River Run and the 1- Envision entrepreneurial group. The County has committed $10,000 for 2006-7 and the student groups believe they will raise enough to cover the rising utility costs ($10,000/yr). These sources, along with the additional 10,000 requested from the Economic Development fund, would assure our ability to remain in our present location. 1.2. Provide a brief history of your company: The Extend the Dream Foundation (EDF) dates back to the founding of Wild Bill's Coffee Shop on the U of I campus in 1974. Its current community based history began in 2001 with the formation of Uptown Bill's Small Mall at 401 S. Gilbert St. and the opening of micro-enterprises owned and operated by persons with disabilities. In its early years Bill's Coffee Shop was operated by the International Bill Foundation until its 1999 merger with the Extend the Dream Foundation. 1.3. Describe the organizational structure of the business: EDF is a 501 C-3 non-profit corporation governed currently by a 13 member board of directors most of whom are notable local business, academic and community leaders.. EDF is administered by a retired experienced administrator volunteer and network of approximately fifty community volunteers. Revised 11116106 2 The financial management is handled by Executive Director with paid assistance through a service contract With Marlene Perrin at Taxes Plus. The Board meets quarterly and the Executive Committee meets monthly. Other standing committees include: Community- University Relations, Futures and Planning and an Endowment Committee meet as needed. See Organization Chart, 1.4. Management (Proprietor, partners. officers. directors, all holders of outstanding stock, 100% of ownership must be shown) - non-profit Name & PositionfTitle Complete Address % Owned Thomas Walz, Executive Director' 915 E. Davenport St, Iowa City Allan Young, Chairperson 3248 Hastings Ave, Iowa City Dale Hankins, Vice Chair Solon, Iowa Mercedes Bern-Klug, Secretary 1803 CSt, Iowa City . Charles Skaugstad, Jr, Chair, 602 S, Summit St, Iowa City Communty Relations Committee Dr, Phillip Jones, co-chair, 3201 Muscatine, Iowa City Endowment Committee David Maeglin, Treasurer, Chair of 20 N, Lowell St., Iowa City Finance Committee Jeff Larsen 2201 Dubuque Rd" Iowa City Rabbi Jeffery Portman 3030 Friendship Ave, Iowa City Carol Fisher 1208 Guilford Crt, Iowa City Marilyn Austen Williamsburg, Iowa Barry Morrow Santa Barbara, Calif, Josh Gersten 79 Primrose Crt, Iowa City Rev. Eugene Mathews 3113 Court St., Iowa City Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. EDF Management Resumes: Revised 11/16106 3 Dr. Walz has a lengthy administrative experience: Director, Community Rehabilitation Center, Mpls. 1959-61, Director Living Leaming Center, U of Minn, 1964-68, Director of Community Design Center of Minn, Mpls, 1971-73, Planning consultant to Mpls Model Cities (1969-71), Peace Corps Director, Honduras, CA (1962-64), Director of the School of Social Work (1973- 78), Director of the U of I Gerontology Center (1977-81), Director of the Des Moines Graduate Center (1991-1999), and founder Director of Extend the Dream Foundation since 2001. Dale Hankens, former Director of Training for Accenture (formerly Arthur Anderson) International Division, 20 years. David Maeglin, President of Muscatine Storage (1994-2004), currently an international investor. Jeff Larsen, former owner of several Iowa City businesses, investor. Phillip Jones, Vice President for Student Affairs, U of Iowa, 25 years. 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another? No 1.6. Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. . No Revised 11/16/06 4 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to the nearest Activity hundreds) Land acquisition New Construction/Expansion Repair Acquisition and/or Repair of Machinery $ and Equipment Inventory Purchase $ Working Capital (including accounts $ payable) Acquisition of Existing Business $ All Other - subsidy for rent 2007-8 $ $10,000 Total Loan Requested (All Sources): $ 10,000 2.2. Terms of Proposed Financing (Sources) Proposed" Amount Monthly Pay Type(1) Rate Term Financing Financial Financial Institution Other: Iowa City $10,000 CDBG Economic Dev. Fund . Total $10,000 . Other income sources to meet rent and utility obligations for 7/1/07 -6/31/08 will come from EDF micro-enterprise eamings ($20,000), Johnson County ($10,000), River Run ($7,000) and I-Envision ($3,000). Monthly rent is $3350/mo and utilities average about $650/mo. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Revised 11/16/06 6 Successful efforts have been made to explore other areas of subsidy, but a shortfall of approximately $10,000 for 2007-2008 remains. Given the COBG support to date and our ability to take over a large part of the past subsidy through earnings over the past three years, we felt the City might be willing to continue its support again at a reduced level. EDF would continue to explore the avenue of county and community funding to take over this operating cost in the future. Revised 11/16106 6 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. EDF from micro.enterprise earnings will contribute a minimum of $20,000 and an additional $10,000 from its community (student) donors. . 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: Extend the Dream Foundation - $20,000 Johnson County govemment. $10,000 River Run (beneficiary of race) . $7,000 I.Envision student organization (golf tournament). $3,000 2.6. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. o Corporate Gu!,!ranty o UCC Financing Statement o Irrevocable Letter of Credit o Personal Guarantee o Surety Bonds Mortgage on Real Estate o Escrow Account o Other: this has to do with a building lease payment ($3,350/month) Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. We would have about $10,000 of inventory among the small Mall micro.enterprises, but nothing of value greater than $5,000. 2.7 If the City did not provide financial assistance, could the project proceed? It would be difficult, we would need to borrow from our modest endowment funding that has been set aside to eventually hire a full time director to replace our current "volunteer" director. Walz, while in good health, is 74 years old. Section 3: Jobs to Be CreatedlRetained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51% of the jobs created or retained must be held by or made available to low- moderate income persons. The business acknowledges that if it fails to create an.dlor retain the Jobs identified below by the end of the project period and maintain them for a period of time (usually 12 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. Revised 11/16106 7 3.1 If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. Listed are only those low-income persons with disabilities: Uptown Bill's Ice Cream and Coffee Bar - (1) owner, (2 assistants), (4) volunteers. Bill's Bookmark (2 co-owners), (3) assistants. Mad Hatter Room (1) owner, (1) coordinator of music outreach Mr. Ed's Computer Graphics (1) owner 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 Months of Project Award (please see attached Job Category Definitions) Hourly # of Jobs # of Jobs No. Hours Rate of Pa Fringe Created Retained Type of Job Per Week y Benefits* 5 Owner/managers 100 I Profit share Professional Technicians Sales Office & Clerical 50 Stipend Craft Wokers (Skilled) Operatives (semi-skilled) 1 Laborers (unskilled) 20 houtslwl<. $501wk Service Workers *If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? N/A 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: No Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? RevIsed 11111101i 8 We are the only business in the downtown area that can cope with persons with mild to severe disability and in which adult members of this constituency can feel comfortable and accepted. In addition.we are the only alcohol and smoke free environment that provides an adult family atmosphere in the southeast section of downtown. The competitors for the student residents in the area are the bars. liquor stores and. upscale coffee shops. The majorit of our existing student costumers are book buyers. musicians and volunteers. 4.2. Please describe the energy and resource efficiency. waste reduction. waste exchange. and recycling programs at your Iowa City operation. We recycle all hazardous materials through the county facility at the landfill. One of our volunteers is a waste management specialist (engineer) and is planning to do a study of our facility at the end of April. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities. does your business contribute or have plans to contribute to the community through volunteer work. financial contributions. or . through other means? Please describe. EDF and its micro-enterprises recruit. train and utilize a large number of volunteers annually (more than 100 different persons) per year. most of whom are assigned to one another small business in the small Mall. The small Mall annually sponsors the Ralston Creek Labor Day Fair and Flea Market which is entering Its sixth year with annual attendance of over (1000) persons. The businesses of the small Mall provide an important supportive resource to low-income elderly and disabled persons in the community 365 days a year. The Mad Hatter Room provides downtown space for 8-11 AA meetings per week. in addition to offering many supportive services to persons in recovery, including temp employment. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including. but not limited to environmental regulations. payroll taxes, Occupational Safety and Health Administration laws. Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes. please explain the circumstances of the violation(s). No 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. No 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. Revised 11116108 9 No Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [ x] Business plan (if start-up business) [ x] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) [ x] Profit and 1055 statements (3 year historical if an existing business, 3 year projection for start-ups) [ x] 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to tum profitable) [] Description of fringe benefits provided to employees, if applicable N/A [ x] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Micro-enterprise owners in the small Mall: Tim C, 36, owner of Uptown Bills Ice Cream and Coffee Bar, some college, worked in restaurants as a cook or cooks helper prior to illness, on disability, has both MI and substance abuse background. Dave M, 57, college grad, local poet, has variable work history; mainly white collar, is a published poet and writer, has MI background. Allisa W, 18, high school grad (07), being reunited with mother in recovery, has some MI problems as well. Del A, 52, some college, veteran, PTSD and severe diabetes, has varied background, Has a disability pension. Ed G, 57, AA degree accounting, has cerebal palsy and is deaf, disability pension. Revised 11/16/06 10 [x) Please provide the social security numbers for all the persons listed under Management (Question #1.4) Dave M J, Del A tb. . Tim C...., Ed G l] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. N/A [] Construction loans only: Cost estimates for construction and a statement of the source of any additional funds [] Include a list of any machinery or equipment or other non-real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. None Upon review of a submitted application, the City reserves the right to request additional informatIon In order to assist the City with its evaluation of an application. 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 representations, 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 ass' je from a state agency or political subdivision. Date: <.f/s,,jo7 If applicant is a Corporation, 19n below: -t:k~~ ~ Date By: ~~ . . natu of President A tlested by: Signature of Corporate Secretary Revised 11/16106 11 INITIAL REVIEW OF LA REYNA, INC. WORKING CAPITAL Business Proposed: la Reyna is a family owned specialty grocery store and restaurant specializing in Latin American products and cuisine. The business was established in March 2004. The owners previously owned and managed a store and restaurant in Columbus Junction, Iowa. The owners request funds for working capital. The store and recent restaurant addition has increased sales significantly. From 2005 to 2006 there was a 30% increase. It is anticipated that the projected sales for 2007, based on the first four months of operation, will be 39% higher than 2006. Budget & Private Financial Contribution $100,000 Iowa City CDBG low interest loan (7-year loan, 3.2% interest) Applicant has invested $25,000 in business operations. The business purchased the building on contract. The contract agreement requires monthly installments for 10 years, 6.5% interest rate on the unpaid balance. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CC-2 zone (community commercial). CITY STEPS notes a high priority for the expansion and/or retention of business that meet the State's CEBA wage thresholds. Quality of Jobs The business is a minority owned business. The statements provided state the owners, Carlos and Carmen, receive a combined wage of $51,600. The Legaspi family, household size of 4, qualify as low-to-moderate income (LMI). The three positions proposed are at $7.25-$8/hour with no benefits. The wages for the owners, who qualify as low-moderate income, is above the CEBA wage threshold. The business provides goods and services to a segment of the population that buys latino products and cuisine. The owners are bilingual. There is only one other latino grocery store, EI Paso, in Iowa City. Economic Impact The proposed CDBG funds will provide a minority owned business access to low interest working capital. The business is experiencing a financial crunch with significant sales increases. Environmental/Community Involvement The business has supported local community organizations with donations and plans to join the Iowa City Chamber of Commerce. May 2007 Items to Address: 1. The financial information presented was not complete. Business needs to address financial reporting and management. Recommend if funded, an amount be directed to accounting services for financial management and reporting. 2. Business has significant credit card debt. Business was denied a business line of credit and it appears to be financing working capital with credit card debt. Permanent working capital is a long term use, the source of funds, such as a line of credit, must be long term as well. 3. The owners will accept a mortgage on the real estate. The owners have had a recent appraisal of the property and the appraised value was $640,000. Staff must confirm the amount of collateral available to place a lien on the property if approved for funding. May 2007 Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual Carmen Legaspi Home Address 26545 Hwy 92, Columbus Jet, Iowa, 52738 Name of Applicant Business La Reyna, Ine Full Street Address of Business 1937 Keokuk St. Iowa City, Iowa, 52240 Phone Number & Email Address 319-358-8182, raeastil@roekwelleollins.eom DUNS Number (If awarded funds, applicant must obtain a DUNS number): 187547695 Type of Business Restaurant, Groeery Store Date Business Established 3/2412004 Bank of Business Account and Address (if applicable): Hills Bank, 1401 South Gilbert St., Iowa City, Iowa, 52240 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. Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: Leasehold improvement, Increased working capital, and larger inventory. Recently opened a restaurant in conjunction with a grocery store. Need to upgrade facility to support increased customer traffic. 1.2. Provide a brief history of your company: The business started in March 2004. It is organized as a sub's' corporation, family-owned business. Two family members are employed. 1.3. Describe the organizational structure of the business: '5' corporation. Iowa company. Carmen and Carlos Legaspi are co-owners. Both, Carmen and Carlos work full-time in the business. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name & PositionfTitle Complete Address % Owned Carmen Legaspi, Vice-President 26545 Hwy. 92, Columbus Jct, lA, 52738 50 Carlos Legaspi, President 26545 Hwy. 92, Columbus Jct, lA, 52738 50 Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. Attached 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No, the project will enable the company to become profitable. We anticipate hiring four additional full-time employees: 1 cook, 2 waitstaff, one stock clerk. Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requested (Enter gross dollar amount rounded to Activity the nearest hundreds) Land acquisition $0 New Construction/Expansion Repair $0 Acquisition andlor Repair of Machinery $0 and Equipment Inventory Purchase $10,000 Working Capital (including accounts $90,000 payable) Acquisition of Existing Business $0 All Other (provide description) $0 Total Loan Requested (All Sources): $100,000 2.2. Terms of Proposed Financing (Sources) Monthly Proposed Financing Amount Payment Type!l) Rate Tenn Financial Institution: WestChester Bank $200,000 $2200 Fixed 7.0 11yrs Financial Institution : Mr. Dave Moss $364,000 $2700 Fixed 6.0 10yrs Other: $ Iowa City CDBG Economic Dev. Fund $100,000 1321 Fixed 3.2 7 TOTAL: $664,000 6221 (l)For example: forgivable loan, direct loan, or grant. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Attached 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 Months of Project Award (please see attached Job Category DeRnltions) # of Jobs # of Jobs No. Hours Hourly Fringe Created Retained TYDe of Job Per Week Rate of Pay Benefits" 2 Officials & Managers 140 25,000/yr Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) Operatives (semi-skilled) 1 Laborers (unskilled) 40 7.25 2 Service Workers 40 7.25 (waiter. cook) 40 8.00 'If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? $96800 = Total 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: No, current employees will lose their job if project is not funded. Section 4: Economic & EnYironmentallmpact 4.1. What other Johnson County companies could be considered to be your competitors? Other restaurants, especially Mexican restaurants. Mexican restaurants close by include: EI Ranchero, Los Portales, EI Dorado. 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. Company recycles all bottles and cans for the restaurant La Reyna, Inc. will be purchasing an energy efficient freezer. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. The business has a budget for civic groups of $500. The company plans on joining the Iowa City Area Chamber of Commerce. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). No 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. No 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. No Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [] Business plan (if start-up business) [ x] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) [] Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [] 12 month cash flow statement (if the business does not expect to tum profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [] Description of fringe benefits provided to employees, if applicable [] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) [] Please provide the social security numbers for all the persons listed under Management (Question #1.4) [] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. [] Construction loans only: Cost estimates for construction and a statement of the source of any additional funds [] Include a list of any machinery or equipment or other non-real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. 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 representations, 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 i . a criminal violation under Iowa law to engage in deception and knowingly make, or ca e to be e, directly or indirectly, a false statement in writing for the purpose of procuring conomic development assistance from a state agency or political subdivision. \ If applicant is a proprietor or general partner sign below. By: If applicant is a Corporation, ai n bel By: Attested by: Date: La Reyna Inc. Iowa City, IA Forecasted Financial Statements Submitted by Carlos and Carmen Legaspi FORCASTED FINANCIAL STATEMENTS 41312007 I FORECASTED STATEMENT OF INCOME I .." :..; ...3 Mth. .... .... ..,7 .... .... MlhlO ..,11 ..,,, T..... ~- .....7 J....oT J....7 ......7 .....7 Oct..7 _-07 ....., ....... ...... "".os ....... NetSales 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 619200 101),00% Cost of Goods Sold 25800 25800 25BOO 25800 25800 25800 25800 25800 25800 25800 25600 25800 309600 SO.OO% GROSS PROFIT 25800 25800 25BOO 25BOO 25800 25800 25800 25BOO 25800 25800 25BOO 25800 309600 SO.OO% Qperating Expenses 14904 14004 14904 14904 14904 23204 14904 14904 14904 14904 ,.904 23204 195452 31.57% OPERATING INCOME (LOSS) 10896 ,_ 10896 10896 10896 2596 10896 10896 ,_ 10696 ,_ 2596 114148 18.43% FI!IafICiaI Expense, Interest 3135 3376 3363 "" 3338 3325 3313 3300 3287 327. 3261 "48 39570 '-"" INCCWE (lOSS) BEFORE 7760 7520 7533 7545 7558 -700 7563 7596 7609 7622 7635 -052 74578 12.04% INCOJ.E TAXES F9deralandstaEincometaxes 2715 2632 2636 2541 2545 .255 2554 2559 2663 2668 2572 .226 26102 '.22'1< NET tlCOIE 5044 4888 4896 .904 4913 ~74 49" '937 4946 4954 .962 ~24 ....76 7.63% FORECASTED STATEMENT OF RETAINED EARNINGS ---,..,-. ---- .." ::"2 ..., M1h. ..,~ .:.~ .., 7 ..,. .... ..,10 ..,11 ..." T_ .\~~~7 ..7 Jun-07 Jul.ol Au~ Oct..7 __7 ....., J..... ...... "".os Balance,beginning 201567 206611 211499 216396 221300 226212 225738 230667 235605 240550 245504 250467 201567 Dividend payments 0 0 0 0 0 0 0 0 0 0 0 0 0 Addnetincome(bss) 5044 48" 4896 4904 4913 ~74 49" 4937 4946 4954 4962 ~24 46476 BALANCE ENDING 206611 211499 216396 221300 226212 225736 230687 235605 240550 245504 250467 250043 2.10043 c.m.s. _... Year 1~ page 1 FORCASTED FINANCIAl 8T A TEI.ENTS 41312007 IFORECASTED BALANCE SHEET I _0 -. ";::2 -MIll, -. .:::t;' .:':. -MIll 7 -. _9 _to .....11 -" Y_-end 01...... 'M'" J....oT JuI-07 Oct..7 .....7 000-07 Jan.08 F...... "".os 2008 ....... CURRENT ASSETS ""'" 2000 28630 35739 42948 42172 49381 48290 5""" 57677 64868 64119 71326 70237 70237 7.93% TradeReceivables,net 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% '- 35000 50000 50000 50000 50000 50000 50000 5??oo 50000 50000 50000 50000 50000 50000 5.65% Work-in-Process 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% Deposl1s 0 0.00% TOT AI.. CURRENT ASSETS 37000 78630 65739 92948 92172 99381 98290 100466 107677 11.... 114119 121328 120237 '''''7 13.58% LEASEHOLD IMPROVEMENTS, EQUIPMENT. LAND, BUtlDlNGS." cost Buildingsandlmprovernents 542000 542000 542000 542000 542000 542000 542000 542000 542000 542000 542000 542000 542000 542000 6112% lBrnj 135000 135000 135000 '35000 135000 135000 135000 '35000 135000 135000 136000 135000 135000 135000 15.25% Furniture, Fctwres & Equipl 118000 116000 118000 116000 116000 118000 118000 118000 118000 118000 118000 118000 118000 118000 13.33% Vehicles 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% Total before Oepre. 795000 795000 795000 795000 795000 795000 795000 795000 795000 795000 795000 795000 795000 795000 89.79% lessAccum.Depre. 0 248' 4978 748/ 9956 12444 14933 17422 19911 22400 24689 27378 29867 29687 '.37% TOTAL PLANT EQUIPT. & LAND 795000 792511 790022 787533 765044 762558 790067 m57. 775069 772600 770111 767622 765133 765133 86.42% OTHER ASSETS GoodwiI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% TOTAL ASSETS 632000 871041 875761 6804ll1 877217 881937 878357 .78046 882766 887486 684231 888951 . 885371 686371 100.00% c.m.s. _... Year1-page2 FORCASTED FINANCIAl STATEMENTS '/312007 I FORECASTED BAlANCE SHEET cool I O1~O -:=: ~ .-, ...... ~7' ;'::::7' __7 -Mth . .-9 .-10 -Mth11 .-" V.......d .07 Ju..oT Jul-01 001-07 Nov.o1 ....., Ja..... ...... ..... - ....... LIA8IUTIES Short-TermNoles 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% Plus Cur. Port. ollT Oebt 21263 34438 34592 34747 34902 35056 35215 35372 ,5631 35690 35850 36011 36173 36173 4.09% """'''''- 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% RealEstaeTaxes 17000 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% Income Taxes Payable 0 2716 534. 7985 ~1 5266 5031 2654 5313 7976 2688 5340 5111 5111 0.58% CURRENT LIABIlITIES 68263 37154 39940 42731 37543 40344 40245 38027 40644 43666 3851' 41351 41~ 41264 4.66% long Term L.iabiIities 563433 661114 658914 656101 66327' 650431l 647'" 644725 641849 638960 .36059 633144 630216 630216 71.18% LessCur.Port.oflTOebt 21263 34438 34592 34747 34902 '5056 35215 35372 35631 35690 35850 36011 36173 36113 '.09% lONG-TERM DEBT 542150 627276 524322 621355 618374 615300 612373 609352 606318 603270 600209 597133 594044 594044 67.10% rTOTAL LIABILITIES 630433 664430 684262 664086 655917 655124 652619 647379 647162 646936 636726 6364114 636321l 635328 71.76% STOCKHOlDER'S EQUITY Commoo ""'" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% RelainedEm'nings 201567 206611 211499 216396 221300 226212 725736 230667 235605 240550 245504 25""'7 250043 25004' 28.24% TOTAl EQUITY 201567 206611 211499 216396 221300 225212 225738 23<J687 235605 2<0550 245'" 250467 25004' 250043 28.24% TorA!.. UA8. AND SH EQUITY 632000 871041 875161 680461 871217 881937 878357 876046 682766 687486 684231 868951 685371 llll5371 100.00% c.m.s. ~... Year 1- page 3 FORCASTED FINANCIAL STATEMENTS 41312007 I FORECASTED STA TEIIEHT OF CHANGES IN FINANCIAl.. POSITION I ."!!',' ..,2 .." Mlh' ::.o~ ~~ Mlh7 ..,. ..,9 ...to ...11 Mlht2 V..... .07 ......7 Jun-07 JuI.Q7 . 7 Oct-07 Nov-07 000-07 J..... F_ ""... 2008 ...... ANANCIAl RESOURCES FROM OPERATIONS Net Income (loss) 5,044 ',668 4,896 4,004 4,913 (474) 4,929 4,937 ',946 4,954 4,962 (424) 48,476 3334.51% IlBmswhi:h did notrequi'e oullayofcash: - 2,489 2,489 2,489 2,489 2,489 2.489 2,489 2,489 2,489 2,489 2,489 2,489 29,867 2054.44% 0.00% {lncreaseJ decrease in Trade _(oet) 0.00% (Increase) decrease in Inventory (15,000) (15,000) -1031.81% (Increase) decrease In Wort-in-Process 0.00% (Increase) decrease in Prepaid Expenses 0.00% Increase (decrease) in kcs. Payable (50,0001 (50,0001 -3439.36% Incr8a&e (decrease) in N::a. Expenses (17,000) (17,000) -1169.38% Increase (deaease) in Income Taxes Payable 2,716 2,632 2,636 (5,344) 2,645 (255) (2,377) 2,659 2,663 (5,308) 2,672 (2281 5,111 351.60% CASH PROVIDED BY ED IN OPERATIONS 1751 10009 10022 2049 10047 1759 5041 10085 10098 2135 10123 1637 1454 100.00% FINANC&AL RESOORCES FROM INvEsTING Sale (Purchase) of BuMngs, IrTIJlI'D'I8fTllls, Land, Furniture, Veil. CASH USED CElVED FROM INVESTMENT . RNANC1Al RESOURCES FROM ~NG lncrease(cIeaease) inShor1-Term Noles 0.00% Increase (decrea&e) in Long-Term Debt 98,261 (2,BOO) (2,813) (2,825) 12,6361 12,850) (2,863) (2,876) (2,889) (2,902) (2,915) (2,928) 66,783 100.00% Incr8ase (decrease) fl Coot by Owner 0.00% -- 0.00% CASH PROVlDED D BY FINANCING 98261 2813 26 26 2850 2663 2876 12689 290 915 2928 66783 100.00% Cashlnlowl~ 26,630 7,200 7,209 (776) 7,209 (1,091) 2,178 7,200 7,200 ~.~ 7,200 (1,091) 68,237 97.15% Cash,Beginning 2,000 26,630 35,739 42,948 42,172 49,381 48,290 50,466 57,rm 64,886 64,119 71,328 2,000 2.85% CASH ENDING 28530 35739 42946 42172 49381 48290 50466 57677 64668 64119 71326 70237 70237 100.00% Carman lagaspi.xls Year 1. page 4 FffiCASTEO FINANCIAL STATEMENTS 413120OI IFDRECASTED SCHEDULE OF OPERATING EXPENSES I ..., .~ "'3 "'4 :::. ~~ ..,7 .... .... ..,,, Mlh11 1Mh" ......... Anr-47 Jun-07 Jul<l7 Oct.o7 ...-07 ....., J..... F..... "".os T_ ....... Advertising 200 200 200 200 200 200 200 200 200 200 200 200 2400 0.39% EleclricilyandNaturalGas 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15600 252% W"'"' 120 120 120 120 120 120 120 120 120 120 120 120 1440 0.23% Insurance (workmans comp, fire, liabiHty) 425 425 425 425 425 425 425 425 425 425 425 425 5100 0.82% Salaries 3,870 3,870 3,870 3,870 3,670 3,870 3,870 3,870 3,870 ',670 3,870 3,870 46440 7.Wl\ Payroll Taxes 310 '10 3" 310 ,10 310 '10 ,10 '10 310 '10 '" 3715 0.60% Unemployment 100 100 100 100 '00 100 100 100 100 100 100 100 1200 0.19% Repairs and Main\enance 200 200 200 200 200 200 200 200 200 200 200 200 2400 0.39% Telephone 13' 135 135 135 '35 135 135 135 135 135 135 135 1620 0_ Trash ISO lSO lSO lSO lSO lSO ISO lSO ISO ISO 150 ISO 1600 0.29% Alarm System 35 35 35 35 35 35 35 35 35 35 35 35 420 0.07% OffiCeSupllies 100 100 100 100 100 100 100 100 '00 100 100 100 1200 0.19% Real EstatBTalles ',300 ',300 16600 "." """"" 63 83 63 63 83 83 83 63 63 83 63 83 1000 0.16% Ilnoml",""""" 71 71 7t 71 71 71 71 71 71 71 71 71 950 0.14% ProIessionalFees 167 167 167 157 '67 167 167 167 167 167 167 167 2000 0.32% Wages-Officers _ 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 51600 '.33% Aut! and Gas Expenses 500 500 500 SOO SOO 500 500 500 500 500 500 500 8000 0.97% Bank Charges .. .. 58 .. .. .. .. .. 58 .. .. .. 700 0.11% Grounds Maintenance 83 63 63 63 83 63 83 ., 83 63 83 63 1000 0.16% Connd ""'" 208 208 20. 208 208 208 208 208 208 208 208 208 2600 0.40% - - 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2.489 2,489 2,489 29687 4.82% Arnortiza\i:In OT AL OPERATING EXPENSES 14004 14904 14904 14004 14904 23204 14904 14004 14904 14004 14904 23204 195452 0 Caman L.egaspi.xls Veari-page5 FORCASTED FINANCiAl STATEMENTS 4I3J2!YJ7 IFORECASTED SCHEDULE OF COST OF GOODS SOLD I Mlhl ::1r ...3 ..,4 .~~ ~ ..,7 ..,. ..,9 ..,to Mthll "'12 T_ ....."" Anr..Q7 ....-07 Jul-07 Oct-07 .....7 000-07 ....... F..... ....... ."""' Cost of Goods SoId-supermarketand restauranl 25,800 25,600 25,800 25.800 25,600 25,800 25,800 25,BOO 25,800 25,800 25,600 25,800 309,600 SO.OO% - OTAL COST OF GOODS SOLO 25800 25BOO 25800 25600 25BOO 25BOO 25800 25600 25800 25800 25900 25BOO 309600 SO.OO% c.m.s. _... Year1-page6 FORCASTEO FINANCIAl 8T A TEMENT8 413/2007 IDEPRECIATlON SCHEDULE I CUmIIIIlve -.. "" ...2 M1h' ..,4 4~5 ,,:; ..,7 ...., .... ..." ...11 ...." Ufe Cool Cool ....- ~-.o, M.-07 ......., JuI-07 '~7 Qct.o7 Nov..()7 Oec.oT ........ Feb-08 ....... ,- BuIkIngs IIId knpro\ements Beginning 30 542,000 542,000 1 1,506 1,506 1,506 ',506 1,506 1,506 1,506 1,506 1,506 1,506 1,506 1,506 18,067 -.... 30 542,000 1 -"'" 30 542,000 1 AdtiIionsJune 30 542,000 1 AdlitionsJuly 30 542.000 , AddMion$AulJISt 30 542,000 1 -- 30 542,000 1 -~ 30 542,000 1 -- 30 542,000 , Additions December 30 542,000 1 _Jao..., 30 542,000 1 AddiIionsFebruary 30 542,000 1 AdcIitionsu..ctl 30 542,000 1 Tole' 542000 1506 1506 1506 1506 1506 1506 1506 1506 1506 1506 1506 1506 18067 Fumlbn, FilctInI & EquIpt. Beginnilg 10 118,000 118,000 1 963 963 983 963 98' 963 963 963 963 963 963 963 11,800 -.... 10 118,000 1 -"'" 10 118,000 1 AdtWons June 10 118,000 1 AdciIionsJuly 10 118,000 1 AdditionsAugusl 10 118,000 1 -- 10 118,000 , AddiIons()Q)ber 10 118,000 1 - -- 10 118,000 1 Add'dions December 10 118,000 1 - AdditionsJanuary 10 118,000 1 - -- 10 118,000 1 - AddilionsM:an:h 10 118,000 1 "" 116000 963 963 963 963 98' 683 983 963 963 683 963 983 11800 denrAciation !dledule ami on next oaoe c.man 1..8gaspi.x1s Year 1.page7 FORCASTED FINANCIAL STATEMENTS 41312007 IDEPRECIATION SCHEDULE I Cumul8tlve ....... .." :::;: MIh' ..,. MIh' <~~ M1h7 ..., ..,. Mlh10 "'" ..." l.IIe Cool Coot AM.o7 .07 Jun.07 JuI.07 A......7 Oct.o7 ....07 000-07 ....... F..... ""... T_ Iv_ Beginning 20 1 AdditionsApiI 20 1 Additions"" 20 1 AdlitionsJune 20 1 _July 20 1 AdlitionsAugust 20 1 -- 20 1 AdditionsOcttlef 20 1 AdditionsNollember 20 1 Additions December 20 1 AddiIionsJanuary 20 1 Additions February 20 1 --- 20 1 T"'" Totaldepreciallonexpen:se 2,489 2.489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 2,489 1SJ,867 Plus beginning accurnula!eddepreciation 2,489 4,978 7,467 9,956 12,444 14,933 17,422 19,911 22,400 24,889 27,378 lesselinlnations ENDING ACCUMULATED DEPRECIATION 2489 4978 7487 9956 12444 14933 17422 19911 22400 "869 '11378 29667 29667 - Camaolegaspi.xls year 1- page 8 FORCASTED FINANCIAL STA.TEMENTS 41312007 ITRADE RECEIVABLES ANALYSIS I r '~.o~ ..,2 1IIh' ..,4 1IIh' .:.,~ 1IIh7 Mlh8 ..,. ..,to 1IIh11 1IttIt2 .......... .....T Jun.o1 Jul.o7 ""'7 0<1.07 _.07 Dec-07 Jan-08 F...... ...-.os T_ SaIos Supermarket Sales 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 412.SlO Restaurant Sales 17,200 17,200 17,200 17,200 17,200 17,200 17,200 17,200 17,200 17,200 17,200 17,200 206,400 - "rcen' roTAL SALES 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 619200 100.00% _~"""'(1.00%) 51,600 51,600 51,600 51,600 51,600 51,600 51,600 51,600 51,600 51,600 51,600 51,600 619,200 0.00% _ 30 Days (0.00%) 0.00% _... 60 Days (0.00%) 0.00% ........ 90 Days ~.OO%) Recelpts from PrevIoo6 Year , CASH RECBPTS FROM SALES 51BOO 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 51600 6192001 I ITRADE RECEIVABlES 0 0 0 0 0 0 0 0 0 0 0 0 I c.m.s. Legasp<.x1s Year 1 - page 9 FORCASTED ANANCIAL STATEMENTS '/3I2fIJ7 AMORIlZATION SCHEDULE I LOAN 11 I AMORTIZATION SCHEDULE I LOAN #2 I AMORTIZATION SCHEDULE IlOANt3 I It!m = r.rm 11 Tenn Z IntlnstRate ~ Interest Rate 7.00'1\ Interest Rate Mill!> Rea 8aBlce - Baa Balance 2!I!lQQQ BeoBalance = ~ 1 SloIlMon!!l 1 ~ < - <m - 2177 - m1 DATE # PAYMENT INT. PR1N. BALANCE DATE # PAYMENT INT. PRIN. BALANCE DATE # PAYME INT. PRlN. BAlANCE Apr.(J7 0 0 0 0 363433 Apr-07 0 0 0 0 200,000 Apr-07 0 0 0 0 0 Apr-07 , 2.679 1,969 709 362,724 Apr-07 1 2,177 1,167 1,010 196,990 Apr.(J7 1 0 0 0 10??oo May-07 2 2,678 1,965 713 362.011 May-07 2 2,177 1,161 1,016 197.974 May-07 2 1321 250 1071 98929 Jun-07 3 2,678 1,961 717 361,295 Jun-07 3 2,177 1,155 1,022 196,952 Jun-07 3 1321 247 1074 97855 Jul-07 . 2,678 1,957 721 360,574 Jul-07 . 2,177 1,149 1,028 195,924 Ju1-Q7 4 1321 245 1077 96776 Aug-07 5 2.678 1,963 724 359,650 Aug-07 5 2,177 1,143 1,034 194,890 Aug-07 5 1321 242 1079 95699 ~ 6 2,678 1,949 728 359,121 Sep-07 5 2,177 1,137 1,040 193,850 Sep-07 6 1321 239 1002 94616 Od-07 7 2,678 1,945 732 358,389 Oct-07 7 2,177 1,131 1,046 192,804 Oct-07 7 1321 237 1065 93632 N0v-07 8 2,678 1,941 736 357,653 Nov-07 6 2,177 1,125 1,052 191,752 ""..07 6 1321 234 1088 92444 0e0<l7 9 2.678 1,937 740 356,913 [)ec.()7 9 2,177 1,119 1,058 190,694 [)ec.()7 9 1321 231 1090 91354 Jan.08 10 2,678 1.933 744 356,169 Jan-08 10 2,177 1,112 1,064 189,629 Jao-Oll 10 1321 226 1093 90261 FsIHl8 11 2.676 1,929 748 355,420 Fsl>-08 11 2,177 1,106 1,071 188,558 Fs..,8 11 1321 226 1096 89165 ....,.{)8 12 2,678 1,925 752 354,668 Mar-DB 12 2,177 1,100 1,077 187,~2 "".{)8 " 1321 223 1098 88067 Apr.{)8 13 2,678 1,921 756 353,912 Apr-OB 13 2,177 1,094 1,083 186,398 "",.{)8 13 1321 220 1101 86968 May-06 14 2.678 1,917 760 353,151 May-08 14 2,177 1,087 1,069 '85,309 May.{)8 14 132' 217 1104 85862 Jun-08 15 2,678 1,913 765 352,386 Jun-Q8 15 2,177 1,081 1,096 184,213 Jun-Oll 15 1321 215 1107 84755 Ju<-Oll 16 2.676 1,909 759 351,618 Ju~ 16 2,177 1,075 1,102 183,111 Ju~ 16 1321 212 1109 83646 Au<><J8 17 2,678 1,905 773 350,845 Aug-(l6 17 2,177 1,066 1,109 182,002 Aug-OO t7 1321 200 1112 92534 SeI>08 18 2,678 1,900 777 350,068 Seo-08 16 2,177 1,062 1,115 180,887 Seo-08 16 1321 206 1115 81419 Od.{)8 19 2.678 1,696 761 349,286 Oct-OO 19 2,177 1,055 1,122 179,765 0c1-06 19 1321 204 1118 80301 Nov-08 20 2,678 1,892 766 348,501 Nov-08 20 2,177 1,049 1,128 178,637 "",-00 20 1321 201 1121 79160 1Je<Hl8 21 2,678 1,900 790 347,711 0ec-06 21 2,177 1,042 1,135 177,502 0ec-06 21 1321 196 1123 78057 Jan-09 22 2,678 1,883 794 346,917 JmHl9 22 2,177 1,035 1,141 176,361 Ja"", 22 1321 195 1126 7693' Fet>-09 23 2,678 1,679 796 346,119 Fe~09 23 2,177 1,029 1,148 f75,213 Fe"" 23 1321 192 1129 75802 Mar-09 24 2.678 1,875 803 345,316 Mar-09 24 2.177 1,022 1,155 174,058 ....,-09 24 1321 190 1132 74670 Apr-09 25 2,678 1,870 807 344,509 Apr-09 25 2,177 1,015 1,161 172,897 Ao<-09 25 1321 107 1135 73635 May-09 26 2,678 1,666 811 343,697 May-09 26 2,177 1,009 1,168 171,728 "ay-09 26 1321 164 1137 72396 Jun-09 l7 2,678 1,862 816 342,682 Ju"", 27 2,177 1,002 1,175 170,553 Jun-09 27 1321 '81 1140 71257 Jul-09 28 2,676 1,857 620 342,061 Jul-09 28 2,177 995 1,182 169,371 Jul-09 26 1321 178 1143 70114 Aug-O!l " 2,678 1,963 625 341,237 Aug-09 " 2,177 966 1,189 168,183 Aug-O!l " 1321 175 1146 68968 Sep.09 30 2,678 1,648 629 340,407 Se~9 30 2,177 981 1,196 166,987 S~ 30 1321 172 1149 67819 Oct-09 31 2,678 1,644 634 339,574 Oc1-09 31 2,177 974 1,203 165,764 Oct-09 31 1321 '70 1152 66667 "..,-09 32 2,678 1,839 636 338,736 "",-09 32 2,177 967 1,210 164,574 Nov-09 32 1321 167 1155 65513 Dec-09 33 2,678 1,635 843 337,893 aec-09 33 2,177 960 1,217 163,358 0ec-09 33 1321 164 1158 54355 Jan-10 34 2,678 1,630 647 337,046 Jan-10 34 2,177 953 1,224 162,134 Jan-10 34 1321 161 1160 63'95 _to 35 2,678 1,620 652 336,194 Feb-10 35 2,177 946 1,231 160,903 Feb-10 35 1321 158 1163 62031 Mar-10 36 2,678 1,821 656 335,337 Mar-10 36 2,177 939 1,238 159,664 Mar-10 36 1321 155 1166 60865 Apr.1O 37 2.678 1,816 681 334,476 Apr-10 37 2,177 931 1,245 158,419 Apr-10 37 1321 152 1169 59596 May-10 38 2.678 1,812 666 333,611 May-10 38 2,177 924 1,263 157,166 May-10 38 1321 149 1172 58524 Jun-10 39 2,678 1,807 670 332.740 Jun.10 39 ~,177 917 1,260 155,906 Jun.10 39 1321 146 1175 57349 JuJ..10 40 2678 1802 675 331865 JuJ..10 40 177 909 1287 '" 639 Jul--10 40 1321 143 1178 55171 Cannan Leg.'phls Year1-page10 FORCASTED FINANCIAL STATEMENTS '1312007 I KEY MEASURES I IlIhl ::..; .." I ..,. .~~ T ~~ ..,7 1lIh' ...9 ""0 """ ..,12 I Tolaf. _.07 Jun.o7 Jul-07 0ct-07 Nov.o7 Dtc-07 ......., F...... _.oS SUmmary Analysis MHsum: Reveoues . % by month 6.33% 6.33% 8.33% 8.33% 8.33% 6.33% 6.33% 8.33% 6.33% 8.33% 8.33% 8.33% 100.00% Gross Profit Margin Percent ) 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50."'" 50.00% 50.00% 50.00% 50.00% COst of GoOds Sold Percent 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50."'" 50.00% 50.00% 50.00% 50.00% - -..... 21.12% 21.12% 21.12% 21.12% 21.12% 5.03"- 21.12% 21.12% 21.12% 21.12% 21.12% 5.03% 18.43% Net Profit Margin / 9.78% 9.47% 9.49% 9.50% 9.52% .0.92% 9.55% 9.57% 9.58% 9.60% 9.62% .0.82% 7.63% InterestCosllSales 6.08% 6.54% 6.52% "'9% 6.47% 6.44% 6..42% 6.39% 6.37% 6.35% 6.32% 6.29'1\ 6.33% UqukHty Manum: Acid Ratio 0.77 0.69 1.01 1.12 1.22 1.20 1.33 1.41 1.49 1.66 1.72 1.70 1.70 cc-t_. 2.11 2.15 2.16 2.46 2.46 2.44 2.64 2.64 2.63 2.96 2.93 2.91 2.91 -CapItsl 41376 '5799 50217 54630 59037 58045 62442 661134 71220 75602 79978 78963 711953 EBIT~nteresl: '.48 '.23 3.24 3.25 '.26 0.78 3.29 3.30 3.31 3.33 3.34 0.60 2.68 ..... and 1lebI........, IlebI1DEouHy 3.22 3.14 3.07 2.96 2.90 2.89 2.81 2.75 2.69 2.60 2.55 2.54 2.54 EqullJb-Debt 0.31 0.32 0.33 0.34 0.34 0.35 0.36 0.36 0.37 0.38 0.39 0.39 0.39 Net WOl1h to Total Assets 0.24 0.24 0.25 0.25 0.26 0.26 0.26 0.27 0.27 0.26 0.28 0.28 0.28 CulT8llt Assets to Total Assets 0.09 0.10 0.11 0.11 0.11 0.11 0.11 0.12 0.13 0.13 0.14 0.14 0.14 FIxed Assets to Total Assets 0.91 0.90 0.69 0.89 0.69 0.69 0.89 0.88 0.67 0.87 0.68 0.86 0.68 0pemI0n11 Efflcieney (annUlIIzed): Asset Tumover 0.71 0.71 0.70 0.71 0.70 0.70 0.71 0.70 0.70 0.70 0.70 0.70 0.70 Inventory Turnover 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 No. Oays Supply in Inv. 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 58.14 Reoe/vabIeTumover No. of Days Sales In Avg. Rae. l.eng1h o1Qos<a11ng Cycle 58 58 58 58 58 58 58 58 58 58 58 58 58 Sa~CapItsl~ 14.97 13.52 12.33 11.33 10.49 10.67 9.92 9.26 8.69 8.19 7.74 7.84 7.64 Proftllblllty IlePUm (annulllzed): Retumon Equity 0.291 0.28 0.27 0.271 0.26 -0.03 026 0.25 O.25l o.MT- 0.24 ..().O2 0.19 Rewm on Total Assets om 0.07 om 0.07 0.07 -0.01 0,07 0.071 0.07 0.07 0.071 .Mll 0.05 SItes Effictency Menul1ll (annualized): Total Assets to Net Revenues 1.41 1.41 1.42 1.42 1.42 1.42 1.42 1.43 1.43 1.43 1.44 1.43 1.43 Axed Assets to Net Revenues 1.28 1.28 1.27 1.27 1.26 1.26 1.26 1.25 1.25 1.24 1.24 1.24 0.10 Sales to Total Assets 0.71 0.71 0.70 0.71 0.70 0.70 0.71 0.70 0.70 0.70 0.70 0.70 8.39 Revenues Per Day '779 1720 1779 1720 1720 1779 1720 1779 1720 1720 1911 1720 1720 Carman legaspi.xIs Year 1 . page 11 Carlos & Carmen Legaspi 26545 Hwy 92, Columbus Junction, lA, 52738 319.358.8182 carloslegaspilarey9@yahoo.com BUSINESS EXPERIENCE: La Reyna Restaurant & Grocery, LLC 2004 - Present 1937 Keokuk St, Iowa City, IA A specialty grocery store and restaurant specializing in Latin American products and cuisine. Established in March 2004 with the premise of bringing the 'La Reyna' business model to Iowa City. Family- owned. Managing Owners . Own and operate specialty grocer and cafe with sales projected to exceed $675K in 2007 . Anticipate a revenue increase of 50% over 2005's sales . Responsibility for managing day to day operations and 5 employees . In 2007, expanded business to include restaurant (seating for 49people) La Reyna Restaurant & Grocery 1991 - 2006 225 Main St., Columbus Junction, IA A specialty grocery store and restaurant specializing in Latin American products and cuisine. Established in May, 1991 with the goal of tapping an emerging Latino marl<et. Influx of the Latino population, in this town of 2,000 people, was due to the employment opportunities at the local meat-packing plant. Initially, store opened as a 2 shelf operation occupying 250 sq It on Main St. Grew to encompass 1800 sq It, having never obtained a business line of credit. FamilY-<lwned. Owners . Owned and operated specialty grocer and cafe with sales (in 2005) of $450K . Responsibility for managing day to day operations and 6 employees . Increased revenue significantly, year over year Gerardo's Grocery Store 1985 - 1991 2390 S. Pulaski, Chicago, IL Specialty grocery store in Chicago's 'Little Village,' a predominantly Mexican neighborhood. Owned by David Gerardo (Carmen's brother). It was thru working with her brother that Carmen determined that she would move to Iowa and open her own store; to accommodate the growing population that was leaving the south side of Chicago to re-Iocate there. Assistant Manager (Carmen Legaspi) . Head Cashier . Responsible for bank deposits . Responsible for vendor relationships and managing store's inventory . Store employed 4 people with sales of approximately $175K,yr Community Involvement: Advisory Committee Members, The Louisa County Development Group, Group aimed at increasing sales of local businesses in Louisa County v.O.C.E.S Members, Community Group for Latinos in Louisa County Relevant Skills: Bilingual- fluent in Spanish and English Education: Carlos Legaspi - Bachelor of Arts, Architecture, Universidad Autonoma de Puebla, Mexico Carlos & Carmen Legaspi La Reyna Supermercado y Restaurant 1937 Keokuk St Iowa City, IA 52240 319-358-8182 Actuals for Grocery Store 2005 Sales, from tax returns: $323,225 from March thru December 2005 2006 Sales, approximate: $480,000 2007 Projection for Restaurant and Grocery Store 2007 Sales, estimate based on revenues thru March 23rd, '07: $700,000 Dun & Bradstreet # for Iowa City Store: 187547695 Dun & Bradstreet # for Columbus Jet Store: 946245099 Prepared by racastil 3/29/2007 Page 1 La Reyna, Inc. Income Statement For tbe Period Ended December 31, 2005 12 Months Ended 12 Months Ended Dec. 31. 2005 Dec. 31. 2005 Revenue 301 - Supermarket Sales $ 313,477.14 $ 313,477.14 305 - Money Services Income 9.748.41 9.748.41 Total Revenue 323,225.55 323,225.55 Cost of Sales 401 - COGS 176.349.31 176.349.31 Total Cost of Sales 176.349.31 176.349.31 Gross Profit 146,876.24 146,876.24 Operating Expenses 501 - Advertising 3,546.00 3,546.00 505 - Bank Charges 1,956.03 1,956.03 510 . Commissions 1,366.85 1,366.85 515 - Contract Labor 5,371.68 5,371.68 525 - Depreciation Expense 18,068.00 18,068.00 535 - Legal and Accounting 2,885.00 2,885.00 540 - Insurance 654.50 654.50 545 - Interest Expense 15,097.38 15,097.38 548 - Meals 94.53 94.53 549 - Office Cleaning 658.93 658.93 550 - Office Supplies 883.87 883.87 555 - Licenses and Permits 630.09 630.09 560 - Rent 8,100.00 8,100.00 565 - Repairs 4,114.47 4,114.47 566 - Telephone 2,771.94 2,771.94 567 - Tax Sales 3,761.49 3,761.49 569 - Security Services 602.71 602.71 570 - Supplies 4,989.37 4,989.37 571 - Taxes Payroll 3,850.24 3,850.24 573 - Trash Removal 1,016.68 1,016.68 580 - Utilities 6,409.37 6,409.37 581 - Vehicle Expense 463.18 463.18 591 - Wages 47.074.19 47.074.19 Total Operating Expenses 134,366.50 134.366.50 Net Income (Loss) $ 1250974 $ 1250974 La Reyna, Inc. Balance Sbeet December 31, 2005 ASSETS Current Assets 105 - Hills Bank - Supennarket 106 - Hills Bank - Services 107 - Hills Bank - Intennex 108 - WCSB XXXX7832 110 - Cash on Hand 125 - Inventory $ Total Current Assets Fixed Assets 160 - Prop, Plant, Equipment 165 - Accumulated Depreciation Total Fixed Assets Total Assets 1,907.62 (3,299.20) 94.20 132.74 402.95 1\7.024.81 212,309.00 (18.068.00) $ $ 116,263.12 194.241.00 310 504 )2 Current Liabilities 205 . AlP to Distributors 228. FICA WIH 229 . State W IH 237 . Current Port of L T Debt 240 . Money Services Liability Total Current Liabilities Long Term Liabilities 247. WCSB Loan #4598571 248. WCSB Loan #4599071 Total Long Term Liabilities Equity 280 . CIS 281 . APIC 285 . Owner Withdrawals Current Income (Loss) Total Equity Total Liabilities & Equity La Reyna, Inc. Balance Sbeet December 31, 2005 LIABILITIES AND EQUITY $ 22,250.00 1,487.41 333.89 12,221.00 4.895.59 237,079.17 14.408.00 100.00 6,119.32 (900.00) 12.509.74 $ $ 41,187.89 251,487.17 17.829.06 31050412 La Reyna, Inc Income Statement For the Period Ended December 31, 2006 12 Months Ended 12 Months Ended Dec. 31. 2006 Pet Dec. 31. 2006 Pet Revenue 301 . Supennarket Sales $ 409,099.28 97.02 $ 409,099.28 97.02 305 . Money Services Income 12.560.57 2.98 12.560.57 2.98 Total Revenue 421,659.85 100.00 421,659.85 100.00 Cost of Sales 401. COGS 277.119.92 65.72 277.119.92 65.72 Total Cost of Sales 277.119.92 65.72 277.119.92 65.72 Gross Profit 144,539.93 34.28 144,539.93 34.28 Operating Expenses 501 . Advertising 3,638.16 0.86 3,638.16 0.86 505 . Bank Charges 4,146.56 0.98 4,146.56 0.98 510 - Commissions 4,102.60 0.97 4,102.60 0.97 515 . Contract Labor 1,062.50 0.25 1,062.50 0.25 517 . Contributions 95.00 0.02 95.00 0.02 525 - Depreciation Expense 31,344.00 7.43 31,344.00 7.43 530 Equipment Lease 629.96 0.15 629.96 0.\5 535 . Legal and Accounting 1,821.00 0.43 1,821.00 0.43 540 - Insurance 528.00 0.13 528.00 0.13 545 . Interest Expense 21,996.44 5.22 21,996.44 5.22 548 . Meals 122.14 0,03 122.14 0.03 549 . Office Cleaning 5,731.50 1.36 5,731.50 1.36 550 . Office Supplies 1,607.84 0.38 1,607.84 0.38 555 - Licenses and Permits 1,579.54 0.37 1,579.54 0.37 557 . Postage 95.9\ 0.02 95.91 0.02 560 . Rent 10,800.00 2.56 10,800.00 2.56 565 . Repairs 5,824.13 1.38 5,824.13 1.38 566 . Telephone 2,604.90 0.62 2,604.90 0.62 567 . Tax Sales 5,386.53 1.28 5,386.53 1.28 569 . Security Services 581.65 0.14 581.65 0.14 570 . Supplies 6,919.45 1.64 6,919.45 1.64 57\ . Taxes Payroll 3,167.74 0.75 3,167.74 0.75 573 . Trash Removal 1,463.03 0.35 1,463.03 0.35 578 . Unifonns 833.60 0.20 833.60 0.20 580 . Utilities 10,891.18 2.58 10,891.18 2.58 58\ . Vehicle Expense 2,854.46 0.68 2,854.46 0.68 591 . Wages 25.320.49 6.00 25.320.49 6.00 Total Operating Expenses 155.148.31 36.79 155.148.31 36.79 Net Income (Loss) $ (1060838) (252) $ (J 0 608 38) (252) La Reyna, Inc Balance Sheet Decemher 31, 2006 ASSETS Current Assets 105 - Hills Bank - Supennarket 106 - Hills Bank - Services 107 - Hills Bank - Intennex 110 - Cash on Hand 125 - Inventory $ Total Current Assets Fixed Assets 160 - Prop, Plant, Equipment 165 - Accumulated Depreciation Total Fixed Assets Total Assets (153.46) (2,302.13) 1.12 309.57 118.045.36 232,108.10 149.412.00) $ $ 115,900.46 182.696.10 298 596 :Ci6 Current Liabilities 205 . AlP to Distributors 228. FICA Will 229 . State Will 24 I . John Khainallah 242 . Maria Gerardo Total Current Liabilities Long Term Liabilities 247. WCSB Loan #4598571 Total Long Term Liabilities Equity 280 . CIS 281. APIC 284 . RIE Current Income (Loss) Total Equity Total Liabilities & Equity La Reyna, IDe Balance Sheet December 31, 2006 LIABILITIES AND EQUITY $ 9,283.00 985.04 11.20 5,000.00 2.500.00 227.1 15.60 100.00 52,600.36 11 ,609.74 (10,608.38) $ $ 17,779.24 227,115.60 53,701.72 298 596 56 Hills Bank and Trust Company Member FDIC BiDs Bank ond Trust Compony 131 Main Street BiDs IA 52235 (319) 338-1277 "LENDER" Carmen Legaspi NOTICE OF ACTION TAKEN AND STATEMENT OF REASONS (BUSINESS CREDIT) Description of Account, Transaction or Requested Credit: Business line of credit Application Date Today's Date 03/16/fTV 11/16/06 Description of Action Taken: Request Denied Thank you for applying to us for credit. We have given your request careful consideration, and regret that we are unable to extend credit to you at this time for the following reasons: Excessive obligations in relation to income. Unable to verify income. Insufficient financial information. NOTICE: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is: FDIC Consumer Response Center 2345 Grand Boulevard, Suite 100 Kansas City, MO 64108 Should you have any additional information which might assist us in evaluating your credimorthlness, please let us know. Thank you for applying. Notice: I!J Mailed o Dellvared Dated: March 16. 2006 LENDER: Hills Bank and Trust Company ~K~e ~~e; Q 0 Comm. Banking ~ CALIFORNIA AND MASSACHUSETTS RESIDENTS: See Important Information on the reverse. MASTCMCO i{l Harland FinancIal Solutions, Inc. (4/2:7/04) (800) 937-3799 INITIAL REVIEW OF DISCERNING EYE WORKING CAPITAL Business Proposed: Discerning Eye is a full service optical store founded in December 2005. The store provides high end eyewear and lenses in a retail establishment in downtown Iowa City. In addition to frames, the store also carries clothing accessories, purses and jewelry. The owner requests funds for working capital. The initial build out of the existing space used more capital than expected and significantly reduced the amount of working capital available to the business. Budget & Private Financial Contribution $35,000 Iowa City CDBG low interest loan (7-year loan, 1 % interest) Applicant has invested $40,000 in cash and approximately $10,000 in credit card debt for the business. ISB&T has a mortgage on the owner's personal residence as collateral for their loan. The owner has a significant commitment to the business. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CB-10 zone (central business). CITY STEPS notes a high priority for the expansion and/or retention of business that meet the State's CEBA wage thresholds. Quality of Jobs The job to be retained is a job for a low-to moderate income person. The optician position requires a high school diploma, but does not require any specialized degrees or certifications. The retained position is paid above the CEBA wage threshold and receives benefits. Economic Impact The proposed CDBG funds will assist a downtown business strengthen their cash flow during the year to obtain profitability in late 2008 or 2009. Sales are significantly skewed to the end of the year and the business will need to address month to month cash flow issues to remain in business. Environmental/Community Involvement The business utilizes regulated interior lighting and a programmable thermostat. The business has supported local community organization with donations of cash, gift certificates and eyewear. Items to Address: 1. Due to limited cash flow, would recommend not employing additional staff until cash flow improves or delaying until the end of the year when sales are significantly higher. 2. Limited collateral is available. Applicant requests a personal guarantee. May 2007 Iowa CItV CDBO Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual: Joni Schrup Home Address: 2119 Mallory St SW Cedar Rapids IA 52404 Name of Applicant Business: Discerning Eye Full Street Address of Business: 119 E. Washington Street Iowa City IA 52240 Phone Number & Email Address: 319.338.6800 jschrup@discerningeyeoptical.com DUNS Number (If awarded funds, applicant must obtain a DUNS number): Type of Business: Optical Retail Date Business Established: December 2005 Bank of Business Account and Address (if applicable): Iowa State Bank and Trust 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 Revised 11/15/06 Section 1: Description of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: Discerning Eye currently employs two full-time opticians and an independently contracted optometrist. Our optometrist currently offers eye exams one day per week. We would like to retain the full-time optician as well as expand our optometric services and coverage. An optician adjusts and dispenses glasses and contact lenses usually in conjunction with a licensed doctor of optometry. An optician in the State of Iowa does not need to be licensed or certified. A high school education is necessary for this position. These funds would help us retain the full-time optician and allow us to increase the number of days the optometrist would be in the office performing exams. This would allow Discerning Eye to provide better, more comprehensive service to our customers as well as increase our overall revenue. 1.2. Provide a brief history of your company: Discerning Eye is a distinctive full-service optical store founded in December 2005. Discerning Eye has the look of an upscale optical boutique often found in large metropolitan areas such as Chicago, with a unique frame selection that is not currently available elsewhere in the surrounding area. Discerning Eye employs two full-time opticians and an independently contracted optometrist. Located in Iowa City, lA, Discerning Eye offers high- end, high-tech luxury eyewear and cutting-edge lenses for both men and women. Discerning Eye provides the Iowa City population with unique, individual eyewear. Our goal is to provide for our customers'the experience of purchasing a deluxe product which will leave them feeling special, pampered and thoroughly convinced that they have made the best possible choice in their purchase. Discerning Eye achieved $380,000 in sales during the first year of operation. We were able to achieve these sales figures with an optometrist on staff only 45 days of the year. This allows Discerning Eye excellent sales growth potential. Sales in December of 2006 were especially strong and exceeded $100,000 because many customers utilized their flexible medical spending benefits. The proximity of the University of Iowa to Discerning Eye allows us to fully maximize our end-of-year sales. We have worked hard to cut costs and increase sales in order to maximize profits. The first quarter of 2007 resulted in a 49.7% sales increase over the previous year. The second quarter has shown similar sales figures so far. We have drastically reduced our controllable expenses. Discerning Eye has been able to reduce its advertising expenses and still show an increase in sales. Revised 11/15106 2 1.3. Describe the organizational structure of the business: Discerning Eye is a Corporation taxed under subchapter S. The primary shareholder is Joni Schrup. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name & Positionrritle Complete Address % Owned Joni Schrup - President 2119 Mallory St SW 100 Cedar Rapids IA 52404 Joni Schrup, President and Managing Owner Joni has been dedicated to the optical business since 1976 and ABO certified in 1992. She earned a B.S. degree from the University of Iowa in 1987. She has worked in both private optometric practice and corporate optical retail settings. For the past 13 years, prior to opening Discerning Eye, Joni was the frame buyer for a four-store retail optical company and on-site manager of two of the stores. Joni is responsible for hiring, training and overseeing all aspects of the business including frame buying, purchasing all inventory and developing and maintaining relationships with all vendors. 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No, there will be no transfer of operations or jobs. Revised 11/15106 3 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Loan Requeeted (Enter gross dollar amount rounded to Activity the nearest hundreds) Land acquisition $ New Construction/Expansion Repair $ Acquisition and/or Repair of Machinery $ and Equipment Inventory Purchase $ Working Capital (including accounts $ 35,000 payable) Acquisition of Existing Business $ All Other (provide description) $ Total Loan Requested (All Sources): $35,000 2.2. Terms of Proposed Financing (Sources) Monthly Type(11 Proposed Financing Amount Payment Rate Term Financial Institution: $ Financial Institution : $ Other: $ Iowa City CDBG Economic Dev. Fund $35,000 $430 Direct 1% TOTAL: $35,000 (I)For example: forgivable loan, direct loan, or grant. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. Our business is seasonal due to large amount of medical flex spending benefits that are used at the end of the year by many of our customers. Sales in December 2006 were 25 % of the gross sales for 2006 and provided a net profit of over $70,000. 2007 first quarter sales have increased 50% over the same period in 2006. As Revised 11/15/06 4 encouraging as these sales figures are, our current cash flow situation requires that we find financial assistance to in order to reach the 4th quarter of 2007. Discerning Eye has applied for additional financing through Iowa State Bank. We current have a SBA loan through ISB&T and discussed refinancing that loan as well as establishing a line of credit. However, both requests for funds were denied. 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. Joni Schrup has contributed $40,000 in cash and approximately $10,000 on personal credit cards to establish Discerning Eye. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: DE received help before we opened from Joni Thornton of the Iowa Business Center to fine tune our business plan. We have consulted with Paul Heath from Small Business Development Center for assistance with cash flow and other financing issues. Kurt Kastendick at Iowa State Bank and Trust provided assistance in obtaining the SBA . loan for the business. 2.6. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. o Corporate Guaranty o UCC Financing Statement o Irrevocable Letter of Credit o Personal Guarantee o Surety Bonds o Mortgage on Real Estate o Escrow Account o Other: Before execution of a CDBGagreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. 2.7 If the City did not provide financial assistance, could the project proceed? At this time, without the financial assistance, Discerning Eye would have to let the full. time optician go and reduce the hours of operation of the business. This would result in a reduction in quality of service for our customers. Any plans for an optometrist would have to be put on hold. We may even have to layoff my part-time clerical & sales staff. This would have a dramatic negative impact on future sales and the overall success of Discerning Eye. 5 Revised 11/15/08 Section 3: Jobs to Be Created/Retained Special Note: The Community Development Slack Grant (CDS G) program requires that at least 51% of the Jobs created or retained must be held by or made available to low. moderate Income persons. The business acknowledges that If It falls to create and/or retain the jobs identified below by the end of the project period and maintain them for a period of time (usually 12 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. 3.1 If an existing business. how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. There are two full-time employees and two part-time employees. 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created andlor Retained Positions In First 12 Months of Project Award (pleasB seB attachBd Job CatBgory DBfinitlons) # of Jobs # of Jobs No. Hours HourlyRate Fringe Created Retained Type of Job Per Week of Pay Benefits" Officials & Managers 1 Professional 16 $40 none Technicians 1 Sales 40 $17 See attached 2 Office & Clerical 10 $8-10 none Craft Wokers (Skilled) Operatives (semi-skilled) Laborers (unskilled) Service Workers "If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. Revised 11/15/06 6 3.3 What is the estimated annual payroll for the new employees resulting from this project? Expanding our optometric coverage would result in $33,280 in new annual payroll. 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: It is likely that our full-time optician will lose her job in order to improve our cash flow situation. This would result in a reduction in quality of service for our customer as well as Discerning Eye's hours of operation. Of the two part-time employees, one position would also likely be eliminated. If the project proceeds, we will not only retain our full-time and part-time employees, but we would have the opportunity to expand our optometric coverage. This would result in higher quality of service for our customers as well as increased revenue. Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? There are 3 other optical stores in downtown Iowa City: Alberhasky Eye, Advanced Eyecare and McDonald Optical. 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. All of our interior lighting is regulated by dimmer switch panels. Our furnace and AC are on a programmable thermostat. We also have plans to replace much our interior lighting with energy-efficient florescent lighting within the next couple of years. Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. Discerning Eye has supported several local organizations including ICare, Iowa City Food Bank, Johnson County I Club, Shelter House, University of Iowa Law Students, and the Englert Theater with donations of cash, gift certificates and eyewear. Discerning Eye is fully committed to giving back to the Iowa City community and would like to continue to do so for many years to come. Revised 11/15106 7 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). No 5.3 Has the company or any officer of your company ever been involved in bankruptcy or insolvency proceedings? If so, please provide the details. No 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. No Revised 11/16/06 6 Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [X] Business plan (if start-up business) [X] Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro- forma balance sheet) 1)(1 Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) [ X ] 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [ X ] Description of fringe benefits provided to employees, if applicable [ X ] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) [ X ] Please provide the social security numbers for all the persons listed under Management (Question #1.4) [ X ] If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. [] Construction loans only: Cost estimates for construction and a statement of the source of any additional funds [] Include a list of any machinery or equipment or other non-real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. Revised 11/15/06 9 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 fumished 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. If applicant is a proprietor or general partner, sign below. By: Date: If applicant is a Corporation, sign below: \y By: Attested by: Revised 11/16/06 10 t 1 :35 PM 04/28/07 Accrual Baal8 Discerning Eye Balance Sheet As of December 31, 2005 Capital Stock Opening Bal Equity Net Income Total Equity TOTAL LIABILITIES & EQUITY Dee 31, 05 1,000.00 (145.05) (13,511.27) (12,658.32) 231,547.89 Page 2 , 1:34PM Discerning Eye 04128107 Balance Sheet Accrual Basis AB of December 31, 2006 Doc 31, 06 ASSETS Curront Assots other Curront Asaots Inventory - Framos 45,220.66 Undoposlled Funds 16,916.75 Inventory - Accessories 2,291.45 Total Other Current Assets 64,428.88 Chocklng/Ssvlngs Chocking - -2674 23,437.32 Copltol Ono - Monoy Market 1,030.00 Cash 81.48 Totol Checking/Savings 24,548.80 Accounts Receivable *Accounts Receivable 13,852.28 Totol Accounts Receivable 13,852.28 Total Current Assets 102,829.96 Fixed Assots Leasehold Improvements 120,258.11 Furniture and Equipment Optical Equlpmont / Tools 27,791.05 Furniture and Equipment. other 14,777.86 Computer Equip / Software 3,302.39 Display IIoms 1,534.67 Totol Furniture and Equipment 47,405.97 Organization Coats 1,880.00 Accumulated Amortization (135.00) Accumulated Depreciation (24,271.00) Totsl Fixed Assets 145,138.08 TOTAL ASSETS 247,966.04 LIABILITIES & EQUITY Liabilities Long Term Liabilities SBA Loan 149,900.58 Stockholder Loan 23,695.16 Refracting Lane Loan 18,510.81 Oldham Loan 15,000.00 Investor Loan 4,501.10 Totol Long Term Llabll~les 211,607.65 Current Liabilities Credit Cards Advanta MostorCard '7762 9,753.45 Sam's Club Discover '8210 7,461.19 American Express l1li21004 7,311.00 Capitol One Visa '9326 6,910.00 Clti MC Platinum '3450 6,227.85 Bank of America 5,838.23 Cltl MC Prefarred '3578 5,695.22 American Express Blue 5,687.31 Clti MC Dlvldond '8045 4,155.64 WaMu '0198 2,021.56 Capltsl Ono Visa '3784 1,586.90 American Expreos Blue Cash 958.09 Dell Credit 438.46 Total Credit Cards 64,042.90 Accounts Payable Accounts Payable 39,458.71 Totol Accounts Payable 39,458.71 other Curront Liabilities 941 Payable 2,078.60 Iowa Withholding Payable 917.54 pago 1 , Discerning Eye Balance Sheet As of December 31, 2006 1:34PM 04128/07 Accrual Ba818 Gift Certlflceletl Collected Exam Fee. 'Sales Tax Payable Unemployment Payable Total other Current Liabilities Total Currant Llabllltl.. Total Llabllltle. Equity Capital Stock Ratalned earnlnga Net Income Total Equity TOTAL LIABILITIES & EQUITY Dee 31, 06 895.00 633.00 433.38 50.26 5,007.78 108,509.39 320,117.04 1,000.00 (13,511.27) (59,637.73) (72,149.00) 247,988.04 Page 2 1:35PM Discerning Eye 04128/07 Balance Sheet ACtN_1 Bas's As of March 31, 2007 Mar 31, 07 ASSETS Current A..ets Other Current Anets Inventory. Frames 54,284.07 Undeposlled Funds 3,171.54 Inventory - Accessorle. 2,588.12 Prepaid Exponaa (955.78) Total Other Current Assets 59,087.95 Accounts Receivable *Accounts ReceIvable 8,730.26 Total Accounts Receivable 8,730.26 Checking/Savings Checking. -2874 4,883.24 Cash 324.95 HSBC Direct 3.26 Total Checklng/Savln9s 5,191.45 Total Current Assets 73,009.66 Fixed Assets Leasehold Improvements 120,425.09 Furniture and Equipment Optical Equipment I Tools 27,791.05 Furniture and Equlpmant- Other 15,284.62 Computer Equip I Softwara 3,739.82 Display llems 1,732.06 Stereo / Music 68.41 Total Furniture and Equipment 48,615.96 Organization Costs 1,880.00 Accumulated Amortization (135.00) Accumulated Depreciation (24,271.00) Total Fixed Assets 146,515.05 TOTAL ASSETS 219,524.71 LIABILITIES & EQUITY Liabilities Long Term Liabilities SBA Loan 144,837.34 Stockholder Loan 22,195.16 Refracting Lane Loan 17 ,558.41 Oldham Loan 15,000.00 Investor Loan 3,093.21 Total Long Term Liabilities 202,684.12 Current Liabilities Credit Cards Advanta MasterCard *7782 12,100.81 Sam's Club Discover "'8210 11,123.74 Cltl MC Preferred '3578 6,460.78 Capital One Visa '9328 6,358.00 American Express Blue Cash 6,212.59 CIII MC Platinum '3450 6,091.87 American Express Blue 5,753.12 Bank of America 5,488.23 American Express '21004 4,569.00 CIlI MC Dividend *8045 2,524.76 WaMu *0198 1,955.38 Capital One Visa *3784 1,875.14 Den Credit 290.92 Total Credit Cards 70,604.14 Accounts Payeble Accounts Payable 35,200.05 Total Accounts Payable 35,200.05 other Current Liabilities Pagel 1 :35 PM 04128107 Accrual Ba81s Discerning Eye Balance Sheet As of March 31, 2007 841 Payable Gift Certlflclllee Iowa Withholding Payable Unemployment Payable "Sal.a Tax Payable Collected Exam Fees Sales Tax Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity Capital Stock Net Income Ratalned Eemlngs Total Equity TOTAL LIABILITIES & EQUITY Mar 31, 07 2,780,26 1,155,00 1,072.54 423.23 303.81 140.00 (8.22) 5,855.62 111,670.81 314,354.93 1,000.00 (22,681.22) (73,149.00) (94,830.22) 219,524.71 Page 2 The Discerning Eye Income Statement Vertical January 1, 2005 through December 31, 2005 Analysis Income Sales - Lenses $17,794 53.3% Sales - Frames $15,982 47.9% Sales. Accessories $898 2.7% Sales - Contacts $140 0.4% Sales - Discount -$1 ,433 4.3% Total Income $33,380 100.0% Cost of Goods Sold Cost of Lenses $6,673 20.0% Cost of Frames $5,537 16.6% Cost of Contacts $399 1.2% Cost of Accessories $77 0.2% Total COGS -$12,685 38.0% Gross Profit $20,694 62.0% Operating Expenses Wages $6,064 18.2% Rent $4,125 12.4% Office Supplies $1,337 4.0% Marketing $1,195 3.6% Graphic Design I Materials $982 2.9% Travel $583 1.7% Payroll Tax Expense $573 1.7% Shipping $285 0.9% Banking Fees $266 0.8% Telephone $235 0.7% CC Processing Fees $230 0.7% Utilities $216 0.6% Office Food & Beverage $208 0.6% Employee Bonus $185 0.6% Professional Services $145 0.4% Training $130 0.4% Insurance - Business $29 0.1% Computer I Software Support $25 0.1% Total Operating Expense -$16,812 50.4% Operating Income $3,882 11.6% Other Expenses Interest Expense $4,025 12.1% Net Income -$143 0.4% The Discerning Eye Income Statement Vertical January 1, 2006 through December 31, 2006 Analysis Income Sales. Lenses $198,363 52.0% Sales - Frames $180,758 47.4% Sales - Accessories $9,368 2.5% Sales - Contacts $7,698 2.0% Sales - Discount -$14,863 3.9% Total Income $381,323 100.0% Cost of Goods Sold Cost of Lenses $75,550 19.8% Cost of Frames $70,913 18.6% Cost of Contacts $5,181 1.4% Cost of Accessories $3,051 0.8% Total COGS $154,695 40.6% Gross Profit $226,627 59.4% Operating Expenses Wages $99,957 26.2% Rent $49,800 13.1% Marketing $19,905 5.2% Payroll Tax Expense $8,470 2.2% Insurance - Employee Health $8,005 2.1% Computer I Software Support $7,282 1.9% CC Processing Fees $5,604 1.5% Shipping $5,104 1.3% Office Supplies $4,500 1.2% Legal and Accounting $3,829 1.0% Travel $3,750 1.0% Retail Packaging Supplies $3,719 1.0% Insurance - Business $3,462 0.9% Utilities $2,580 0.7% Telephone $2,529 0.7% Professional Services $2,520 0.7% Parking $2,090 0.5% Office Food & Beverage $1,660 0.4% Cleaning and Maintenance $1,151 0.3% Graphic Design I Materials $590 0.2% Repairs and Maintenance $498 0.1% Doctor Fees $460 0.1% Banking Fees $416 0.1% Charity Donation $392 0.1% Insurance Processing $380 0.1% Total Operating Expense -$238,654 62.6% Operating Income -$12,026 -3.2% other Expenses Interest Expense $19,912 5.2% Net Income -$31,939 -8.4% . The Discerning Eye Projected Income Statement Vertical January 1, 2007 through December 31, 2007 Analysis Income Sales - Lenses $242,016 50.3% Sales - Frames $221,961 46.1% Sales - Accessories $12,315 2.6% Sales - Contacts $12,414 2.6% Sales - Discount -$7,134 1.5% Total Income $481,571 100.0% Cost of Goods Sold Cost of Lenses $94,531 19.6% Cost of Frames $87,521 18.2% Cost of Contacts $6,601 1.4% Cost of Accessories $5,886 1.2% Total COGS -$194,539 40.4% Gross Profit $287,032 59.6% Operating Expenses Wages $100,954 21.0% Rent $53,175 11.0% Marketing $11,224 2.3% Payroll Tax Expense $8,826 1.8% CC Processing Fees $8,463 1.8% Insurance - Employee Health $8,028 1.7% Computer I Software Support $5,839 1.2% Shipping $4,937 1.0% Retail Packaging Supplies $4,937 1.0% Utilities $4,545 0.9% Professional Services $4,474 0.9% Office Supplies $3,383 0.7% Insurance - Business $2,573 0.5% Telephone $2,573 0.5% Parking $2,090 0.4% Office Food & Beverage $1,954 0.4% Cleaning and Maintenance $1,151 0.2% Banking Fees $1,002 0.2% Cleaning and Maintenance $999 0.2% Legal and Accounting $865 0.2% Travel $638 0.1% Charity Donation $535 0.1% Repairs and Maintenance $498 0.1% Insurance Processing $420 0.1% Banking Fees $416 0.1% Total Operating Expense . $234,501 48.7% Operating Income $52,532 10.9% Other Expenses Interest Expense $22,912 6.0% Net Income $29,619 7.8% . , Discerning Eye Discerning Eye Discerning Eye Projected Cash Flow Statement Projected Cash Flow Statement Projected Cash Flow Statement April 2007 - March 2008 April 2008 - March 2009 April 2009 - March 2010 Beginning Cash $7,420 Beginning Cash $29,141 Beginnin9 Cash $51,479 Operations Activities Operations Activities Operations Activities Revenue $532,177 Revenue $614,258 Revenue $715,696 Expenses ($469,512) Expenses ($528,560) Expenses ($589,740) Cash Flow from Operations $62,665 Cash Flow from Operations $85,698 Cash Flow from Operations $125,956 Investing & Financing Activities Investing & Financing Activities investing & Financing Activities Investor Capital $35,000 Investor Capital $0 Investor Capital $0 New Inventory ($3,300) New Inventory $0 New Inventory $0 Credit Card Reduction ($4,800) Credit Card Reduction ($4,800) Credij Card Reduction ($4,800) Loan Payments ($67,844) Loan Payments ($58,560) Loan Payments ($58,560) Cash Flow from Financing ($40,944) Cash Flow from Financing ($63,360) Cash Flow from Financing ($63,360) Increase/(Decrease) in Cash $21,721 Increase/(Decrease) in Cash $22,338 Increase/(Decrease) in Cash $62,596 Ending Cash $29,141 Ending Cash $51,479 Ending Cash $114,075 . 12 Month Cash Forecast - Aori' 2007 - March 2008 BegInning Cash $7,420 , OperatIng Income Total %ofRevenue Lens'- $16,500 $10,275 518,494 $17,906 $13,513 $13,594 $18,516 $21,925 $61,333 $20,866 $15,178 $28,231 $256,331 48.17% ,_ Sales $15,250 $8,455 $18,321 $15,471 $12,620 $11,888 $16,356 $20,_ "'.544 $18,913 516,531 $24,691 $234,_ 44.14% A_ $2,031 $298 $518 $789 $631 $1,198 $1,031 $1,273 $2,300 $970 $496 $1,369 $12,883 VI,.,. Ccnlacts '708 $715 S856 $544 $1,051 $771 $1,031 '780 $1,144 $1,990 $2,019 $1,325 $12,913 2.43% Doctor Fees so SO SO $780 '780 $780 '780 $1,170 $1,170 $1,170 $1,170 $1,170 """"nts ($1.010) ($576) ($2,135) ($763) ($536) ($1,49-1) ($2,415) ($2,246) ($3,875) ($1,388) ($1,618) ($3,978) ($22.033) 4.14" Total Operatlna Inoome $33,478 $31,672 $38.650 $36,105 $32,046 $34,480 $35,300 $43,725 $117,615 $42,521 $33,n6 $52,809 S532.1n 100.llO'% --. Approx. Sates Increase From Last Year. COGS Cost of lenses Sold ($11,857) ($8,930) ($4.318) ($7,767) ($7.521) ($5,675) ($5,709) ($7,777) ($9.209) ($25.760) ($8,764) ($8.375) ($107,659) 20.23% Cost of Frana Sold ($10,370) ($6,100) ($3,362) ($7,329) ($6,189) ($5.048) ($4,755) ($6.543) (".338) ($22.211) ($7.565) (16.613) ($904.441) 17.75% COst of Contacts Sold ($575) ($353) ($358) ($428) ($272) ($526) ($388) ($516) (S380) (om) ($995) ($1,009) (".369) 1._ CostcfAccessor1eS ($1,423) ($1,299) ($2,302) ($1.418) ($6.441) 1.21% T.... COGS ($22,802) ($13,313) 1$9,471) 1$15,524) ($13,ft1) ($12,&48) ($10,1&0) ($14,131) (S2O,22I1 ($48,"" ($17,3241 ($11,414) ($214.916) 40._ Operating Expenses """",Fees ($5,200) ($5,200) ($5,200) ($5,200) (15,200) ($5,200) ($5,200) ($5.200) ($5.2001 W.... ($7,725) ($7.725) ($7.725) ($7,725) ($11,585) ($7,725) ($7,725) ($7,725) ($7.725) ($7,725) ($11,585) ($7,n5) ($100.420) 18.87% Rent & Prop. Tax ($4.SOD) ($4,500) ($4,500) ($4,SOD) ($4,SOD) ($4,SOD) ($4,500) ($<,8001 (....500) ($4,500) ($4,500) ($4,500) ($54,000) 10.15% A.......... ($350) ($350) ($350) ($350) ($350) ($350) ($350) ($980) (S950) ($350) ($350) ($350) ($5,<<10) 1.01% _E"""" ($275) ($275) (S275) ($2,800) ($275) ($275) ($275) ($4,450) 0.84" 0lIi0e_ ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($4.500) 0.85% EqlIoyee HeeIlh Insurance (S650) (S650) (S8501 . (5650) ($650) (S650) (S650) (S85O) (S650) (S650) ($850) ($650) ($7.800) 1.47% U8biIitylnsuJ'8l'lCll ($700) ($700) ($700) ($700) ($2.800) 0.53% UlI_ (S300) (S300) (S300) (S300) ($300) (S300) (S300) (S300) (S300) ($300) ($300) ($300) ($3.600) 0._ Telephone I Internet ($250) ($2BO) ($2BO) ($250) ($2BO) ($250) ($2BO) ($250) ($2BO) ($250) ($2BO) (S250) ($3.000) 0.56% OutsIde P,..J~.aI Serv\C8S ($925) ($925) 0.17% CI1Kit Card I BankIng Fees ($536) (S807) ($618) ($578) ($513) ($552) ($565) ($700) ($1,882) ($880) ($540) ($845) ($8.515) 1._ Payroll Taxes (S660) ($880) (S660) (S660) ($991) (S8BO) (S8BO) (S8BO) ($880) ($880) ($991) ($600) ($8.588) 1.81% -- (S300) (S300) (S300) (S300) (S300) ($350) ($350) ($350) ($350) ($300) (S300) ($300) ($3.800) 0.71% Total o.........;~ -F';~"" ($16,341) ($15.117) ($1U04) ($21,518) ($25,013) ($21,1'7) 1$21,825) ($21,931) CW,W) {$22,....) ($21.311) ($21,430) ($254,596) 47.84% P -nn"', ""871' '~872 $131" '" 007' ''''.... $7" ...,. ..... $71 741 ''''''-91'' ....... $11914 -... 11.78% Investing & Financing Activities New Frame tnventory ($550) ($580) ($580) ($580) ($550) ($5801 (13.300) 0._ Credit Card Reduction ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($400) ($4.800) Loon_ AmEx Green Agreement ($914) ($914) ($914) {$914) ($914) ($914) SO SO SO SO SO SO ($5.484) 1.03'0 Dell Leese ($470) ($470) ($470) ($470) ($470) ($470) ($470) ($470) ($470) SO SO SO ($4.230) 0._ ,,,,,,,,,,",Loon ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($800) ($500) (.$6.000) 1.13% SBA Loan ($2,800) ($2,800) ($2,800) ($2,800) ($2,800) ($2.800) ($2,800) ($2,800) ($2,800) ($2,800) ($2,800) ($2.800) ($33.600) 6.31% _Loon ($475) ($475) (5475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($5.700) 1.07% Bank of AmerICa (Jon) ($175) ($175) ($175) ($175) ($175) {$175) ($175) ($175) ($175) ($175) ($175) ($175) ($2.100) 0._ $tockhOId8r Loan (Joni) ($500) ($500) ($500) ($500) ($800) ($800) ($500) ($800) ($500) ($500) ($500) ($500) ($6,000) 1.13% Net Cash From Flnanclnn ActivitIes (56,784) (56,784) ($6,784) ($6,784) ($6,784) ($6,784) ($5,320) ($5,320) ($5,320) ($4.850) ($4,850) ($4,850) ($71.214) 13.38% Chanae In Cash Flow ($12,455\ ($4,112\ $6,384 ($7,791) ($13,732) ($6,039) ($2,495) $1,635 $66,425 ($33,769) ($13,714) $11,114 ($8,549) 3.33% Nftf c.pItaI _ Iow8 CIty Btock G,.nt $35,000 Loon_ ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($(,730) 0..... Final Cash Position $29.965 $25,423 $31,377 $23.156 $6,993 $2.524 ($401) $604 $66.799 $32,601 $18,457 $29.141 . 12 Month Cash Forecast - ADri' 2008 - March 2009 BegInning cash $29,141 , Operating Income Total "dRevenue Lens _ $22,938 $19,423 $25,081 $21,654 $18,430 $17,018 $23,610 $25,877 $51,438 $24,739 $18.623 032,_ $311,.487 50.13" ,""""- $20,294 $17,564 $23,595 518,435 $16,743 $14,583 $20,382 $24,138 "',809 $22,062 $19,502 $28,274 $284,360 45.78% A--" $2,184 S320 .... $828 - $1,287 $1,109 $1,368 $2,473 $1,043 S533 $1,471 $14,034 2.26% eonlaols $759 '7611 '920 $585 $1,130 $1,054 $1,109 $817 $1,230 $2,138 $2,170 $1.424 $14,106 2.27" Dad<>< Fees 51,560 $1,560 $1,560 $1,560 51,560 $1,560 $1,950 $1,950 $1,950 $1,960 $1,950 $1,950 $21,060 3._ rn.a..rts ($1,OaB) ($819) ($2,295) ($820) ($576) ($1,606) ($2,596) ($2,415) (S4,166) ($1,492) ($1,739) ($4,276) Total Operating Income $46,648 $39,016 $49,418 $42,241 $38,151 $33,897 $45,543 $51.735 $121,733 $50,441 $41,040 $61,500 1621,361 100.0lJ'% Approx. Sales Increase From Last Yeer: COGS Cost fA Lenses Sold ($13,116) ($9,634) ($8,158) ($10,534) ($9,095) ($7,741) ($7,148) ($9,916) ($10,868) ($25,804) (510,390) ($7,822) ($130,824) 21.05"," Cost of Frames Sold ($11,309) ($8,118) ($7,026) (S9,438) ($7,374) ($8,897) ($5,833) ($8.145) (S9,655) ($23,524) ($8,825) ($7,801) (S113.744) 18.31% Cost or Contads Sold ($712) ($380) ($384) ($460) ($2921 ($585) ($527) ($554) (S409) ($615) ($1,070) ($1,085) ($7.053) 1.14% -..- ($1,530) ($1.489) (12,475) ($1,524) ($7,017) 1.13% T.... COGS ($26,737) ($18.131) (S17,OI7) ($20'- ($18,781) (,.....2) 1$13,601) (S18,81I) -) ($.....2) (S2II,2IS1 C$18.231) ($258,638) 41.62% Operating Expe..... Dad<>< Fees ($5.200) ($5,200) ($5.200) ($5.200) ($5.200) ($5.200) ($5.200) ($5,200) (55.200) ($5.200) ($5,200) ($5,200) w_ ($7,725) ($7,725) ($7,725) ($7,725) ($7,725) ($7,725) ($11,585) ($7.725) ($7,725) ($7,725) ($11,585) ($7,725) (S100.420) 18.18% RenI.& Prop. Tax ($4,500) ($4,5001 ($4,500) ($4,SOO) ($4,500) ($4,500) ($4,500) ($4,500) ($4,500) ($4,500) ($4.5(0) ($4.500) ($54.000) 8..... ............ ($1,005) ($350) ($1,005) ($3501 (S3BO) (S3BO) ($350) ($980) ($980) (S3BO) (S3BO) (S3B01 ($6,710) 1._ Mlmlting Events ($275) ($275) ($275) 1$2,800) ($275) ($275) ($275) ($4,450) 0.72'& """"- ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($375) ($4,500) 0.72'lO Employee H88Ilh Inswance ($650) (S85O) (S6B01 (S6BO) (_I (_I (S6B01 (S6BO) (S6BO) ($850) ($850) ($6501 ($7,800) 1._ ~'''''"''''''' ($700) ($700) ($700) ($700) 1$2,8001 0.45% ""- (S300) (S300) ($300) (S300) (S3001 (S3001 (S300) (S300) (S300) ($300) ($300) (S308I ($3,800) 0...... Telephone IlntefTMll ($250) ($2BO) ($250) ($250) ($250) ($2B01 ($2B01 ($250) ($250) ($2BO) (""'I ($250) ($3,000) 0....... QuIskIe-- ($925) ($925) 0.15% Credit Card I Bankhg Fees ($746) ($624) (S791) ($676) ($610) ($542) ($729) ($828) ($1,948) ($807) (S857) (....1 ($9.942) 1._ Payroll Taxes (-I (-I (-I ($8801 ($660) (S88OI ($991) ($880) ($880) ($650) ($991) (-I ($8,586) 1.38% -- (S300) (S300) (S300) (S300) (S3001 (S3B01 ($350) ($350) ($350) (S300) (S300) ($3001 ($3,800) 0.61% Total 0 Ex...... ($22,412) ($20,931) ($22,031) ($21.188) ($20,'21) ($ZO,fICl3) ($2&,254) ($22,...) (S25.7GO) ($23,011) ($21,432) ($21,1491 (S272,933) 43._ , AC ~',101' -. $10219 $122 - '$3 ...' $6781 $11068 i72..11. IS22.m' ,...om $2' ... _710 14.~'" I_ng & Financing ActMtIos New Frame Inventory SO 0.00% Credit Card Reduction ($400) ($400) ($400) ($400) ($4001 ($400) ($400) ($400) ($400) ($400) ($4001 ($400) ($4.800) 0.77% ......- AmEx Green Agreement so SO so SO SO SO SO SO SO SO SO SO SO 0.00% 1leIl...... SO SO SO SO '0 SO SO SO $0 SO SO SO SO 0.00% ,.-...... (saoo) (saoo) (saoo) ($500) (saool ($500) (saool ($5001 ($500) (saoo) ($BOO) ($BOO) ($8000) 0.97% SBA Loan ($2,800) ($2,800) ($2.800) ($2,800) ($2,800) ($2,800) ($2.800) ($2,800) ($2,BOO) (I2,aClO) ($2,800) (52.800) ($33,800) 5.41% Equiprnentl.~ ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) (5475) ($475) ($475) ($475) ($5,700) 0._ Bank of America (Jori) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($2,1oo) 0.34% stock;hoIcIl!lrl..C*'l(Jori) (saoo) (saoo) (saoo) ($500) (saoo) ($BOOI (saoo) ($500) ($500) ($BOO) ($500) ($BOO) ($6.000) 0.97% Net CUh From FI..ncl-_ ($4,850) ($4.850) ($4,850) (S4,BSO) ($4,850) ($4,850) (54,850) ($4,850) ($4,850) ($4,850) ($4.850) ($4,850) ($58,200) 9.37% . 'n "soh '''n_ ......1. ,u900' 05~'9 ,u 728' ,u "1' '08348' 0931 ... 206 ...... 769 1$27 ..... .... 5271 $16 849 $31 590 5.""" New CapItal ~ Iowa CIty Btock GranI ......- ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($5,160) 0.83% Final Cash Position $22,361 $17,031 $22,040 $16,882 $12,071 $3,293 $3,794 $9,570 $76,909 $49,110 $39,153 $55,572 . 12 Month Cash Forecast - ADri, 2009 - March 2010 _Cut! $51,479 - Operating Income Total "dRevenue Lens _ $28,888 $19,674 $29,172 525,488 $20,411 $20,505 $27,493 $29,930 $69,441 $l8,707 $22,133 $37,218 $357,038 49..... ,""""...... $23,473 $15,621 $27,022 $21,475 518,181 517,334 $23,473 $27,532 $62,107 $25,301 $22,549 $31,919 $316,047 44.16% A<X8SS0ri8s $3,010 $1,007 $1,261 51,551 $1,392 $2,047 51,825 $2,104 $3,292 $1,755 $1,207 $2,218 $22,866 3.17% Contads $821 $831 $994 S833 $1,220 - $1,197 - $1,327 $2,30' $2,338 $1,537 514,963 2._ """""Fees $2,3<0 $2,3<0 $2,3<0 $2,340 $2,3<0 $2,3<0 $2,730 $2,730 $2,730 $2,730 $2,730 $2,730 $30,420 4.25% Disc:ounts ($1,167) (-) ($2,467) ($881) ($620) ($1,726) ($2,791) ($2,596) {$4,478) ($1,603) ($1.869) (54,596) Total 0.......n..1ncome $55,345 $38,807 $58,322 $50,607 $42,924 $41,395 $53,928 $60,585 $134,419 $59,194 $49,088 $71,082 $715,696 100.0CI% Approx. Saleslnc:reaseFrom LastYear: 17% """ Cost of Lenses Sold ($13,716) ($11,284) ($8,263) ($12,252) ($10,705) ($8,573) (SB,812) ($11,547) ($12,571) ($29,165) ($12,057) ($9,296) ($1048.040) 20._ Cost of Frwnes 50kI ($11,309) ($9,389) ($6,248) ($10,809) ($8,590) ($7,272) ($6,934) ($9,389) ($'1,013) ($24,843) ($10,120) ($9,019) ($1204,937) 17.46% Cost of Contacts SOld ($712) ($410) ($415) ($497) ($317) ($610) ($448) ($599) ($442) (....) ($1,153) ($1,169) ($7,0436) 1.04% Cost of .Il. lrles ($2,639) ($2,495) ($3,611) ($2,589) ($11,334) 1...... T.... COGS ($25,737) (S21,0I4) (S17,166) (S23,568) ($1',112) (S11,95O) (S11,....1 ($21,"') ($27,1$1) (....672) ($2$,$$0) ($22,07S) ($291,747) 040.76" Operating Expenses Doctor Fees ($5,200) (15,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($5,200) ($62,400) 8.72'lO - ($9,172) (S9,172) ($9,172) ($9,172) ($13,148) ($9,172) ($9,172) ($9,172) ($9,172) ($9,172) ($13,148) ($9,172) ($118,013) 16.049% Rent & Prop. Tax ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) ($4,725) {$4,725) ($4,725) ($56,700) 7.92" A_ ($1,035) ($361) ($1,035) ($361) ($361) ($361) ($361) ($979) ($979) ($361) ($361) ($361) ($8,911) 0.97% _E_ so so ($283) so so ($283) so ($283) ($2,864) ($283) ($283) ($283) {$4,584) 0.64% ~- ($390) ($390) ($390) ($390) ($390) ($390) ($390) (S39O) ($390) ($390) ($390) ($390) ($4,680) 0.65" Employee Health Inslnl1C8 ($7Q2) ($702) ($702) ($702) ($702) ($702) ($102) {S702) ($702) ($102) ($702) ($702) ($8,0424) 1.18% lJabilIty'''''''''''''' ($746) '0 so ($746) so so ($746) so so ($745) so so ($2,982) 0._ U8I8es ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($312) ($3,744) 0.52'lO TeIephon8'lnteml!lt ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($280) ($3,120) 0.44" OUtsIde P,.A..uIo.l8l ServIces so so so so so so so so so ($982) so so ($982) 0.13'" Cr8dII Card I EWlIdng Fees (S886) ($621) ($933) ($810) ($887) (S982) ($883) ($989) ($2,151) ($947) ($785) ($1,137) ($11,451) 1._ PayrolT_ ($784) ($784) ($784) ($784) ($1,124) ($784) ($784) ($784) ($784) ($784) ($1.124) ($7&4) ($10,090) 1.41'" -- ($311) ($311) ($311) ($311) ($311) ($362) ($362) ($382) ($362) ($311) ($311) ($311) ($3,933) 0...... Total 0-_- Ex-noes ('2A,I22) ($2Z,8S7) ($24.107) ($23.7711 ($21,218) (S23.213) ($23.171) (S2A,131) ($27,020) (S25.154) ($27....) ($23,131) ($297,994) 41.64% r . n~l1nn AC .. ... 1$5.114 ".... u". ,u"",, '$7'" "...... $1.1.111 ""'..Z '$20 as" '$'"'' $26..... $1H-t16 17.60% I_ng & Financing AolIYftIes New Frame Inventory SO 0.""" Cl"edlt:CardRecix:tlon (S400) (S400) ($400) (S400) (S400) (S400) (S400) (S400) (S400) (S400) (S400) ($400) ($4,800) 0.67% Loon_ AmEx Green A!JMm8fll: SO SO SO SO '0 SO SO SO SO SO SO SO SO 0.""" 00lI...... SO SO SO SO SO SO SO SO SO SO SO SO SO 0.""" ''''''''''''''''''" (SSOO) (SSOO) (SSOO) (SSOO) (SSOO) (SSOO) (SSOO) ($500) ($500) (SSOO) ($BOO) ($500) ($6,000) 0.84% SSA Loon ($2,800) ($2,800) ($2,800) ($2,800) ($2,BOO) (52,BOO) ($2,800) ($2,800) ($2,800) ($2,800) ($2,800) ($2,800) ($33,600) ...... EQlJpment Loan ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($475) ($5,700) 0._ Bank of AmerIca (..JoOl) ($175) ($175) ($175) ($175) ($175) ($175) ($175) ($175) {S175) ($175) ($175) ($175) ($2,100) 0._ StockhoId8r Loan (JonI) (SSOO) (SSOO) (SSOO) ($BOO) (SSOO) (SSOO) ($500) ($500) (SSOO) (SSOO) ($BOO) ($500) ($6,000) 0.84% Net Cash From Flnancloa ActIvities ($4,850) ($4,850) ($4,850) ($4,850) ($4,850) ($4,850) ($4,850) ($4,8!50) ($4,850) ($4,850) ($4,850) (54,850) ($58,200) 8.1'" . In "ul, Flow '236 "9964' c11799 IC1 572' ... 757' ,c5618' c. ..... c10 061 ''U012 ,.. 692' <20 ... $81756 9.41% ....CapItaI_IoWIlCltyIAoc:kGrant Loon_ ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($430) ($5,160) 0.72'lO Finai Cash Position $51,286 $40,891 $52,261 $50,258 $41,072 $35,024 $43,803 $53,434 $127,016 $101,105 $93.982 $114,075 Employee Benefits Health Insurance Parking Eye Exams 2 pair of eye glasses/ year at no charge or cost 13 days PTO (Paid Time Off)/year Question #1.4 Joni Schrup, President and Managing Owner Joni has been dedicated to the optical business since 1976 and was ABO certified in 1992. She earned a BS degree from the University of Iowa in 1987. She has worked in both private optometric practice and corporate optical retail. For the past 13 years, prior to opening Discerning Eye, Joni was the frame buyer for a four store retail optical company and on-site manager of two of the stores. Joni is responsible for hiring, training and overseeing all aspects of the business including frame buying, purchasing all inventory and developing and maintaining relationships with all vendors. Monthly Sales # Month Sales Rank $ Change % Change 12 December-05 $33,430 3 1 January-06 $17,963 17 2 February-06 $21,220 15 3 March-06 $26,123 10 4 April-06 $24,718 12 5 May-06 $19,883 16 6 June-06 $33,393 4 7 July-06 $28,054 8 8 August-06 $22,732 13 9 September-06 $21,677 14 10 October -06 $28,594 7 11 November-06 $33,133 5 12 December-06 $104,394 1 $70,964 212.28% 1 January-07 $32,172 6 $14,220 79.16% 2 February-07 $25,152 11 $4,151 19.56% 3 March-07 $40,673 2 $14,551 55.70% 4 April-07 $27,739 9 $3,021 12.22% Sales v. Last Year 2006 2007 $ Change % Change 1st Quarter Sales Lenses $33,292 $49,859 $16,567 49,76% Frames $32,044 $47,211 $15,167 47.33% Accessories $1,342 $2,266 $924 68.85% Contact Lenses $1,635 $4,267 $2,632 160.98% Discounts -$2,959 -$5,606 -$2,647 89.46% Total $65,354 $97,997 $32,643 49.95% 2nd Quarter Sales To Date Lenses $31,147 $45,240 $14,093 45.25% Frames $26,773 $40,806 $14,033 52.41% Accessories $2,251 $2,117 -$134 -5.95% Contact Lenses $1,035 $3,943 $2,908 280.97% Discounts -$2,874 -$3,939 -$1,065 37.06% Total $58,332 $88,167 $29,835 51.15% Year to Date $123,686 $186,164 $62,478 50.51% I Weekly Sales. Weeks 1 . 20 -- 2006 - 2007 I I $11,000 i I I I $10,000 , $9,000 I $8,000 $7,000 ,. , I $6,000 $5,000 I $4,000 lA6 $3,000 , I $2,000 $1,000 i 1 3 5 7 9 11 13 15 17 19 -_.-- ---------- lilt IOWA STATE BANK &TRUST COMPANY 319.356.5800 . www.isbt.com April 18, 2007 Joni Schrup Discerning Eye, Inc 119 E Washington St Iowa City, IA 52240 Dear Joni: Thank you for your interest in obtaining a $40,000 small business loan for working capital. Unfortunately, we are unable to approve your credit request for the following reasons: . Lack of sufficient collateral. . Insufficient equity. . Lack of secondary repayment source independent of the business. Our decision was based in whole or in part on information obtained in a report from the consumer reporting agency listed below. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer reporting agency. The reporting agency played no part in our decision and is unable to supply specific reasons why we have denied credit to you. You also have a right to a free copy of your report from the reporting agency, if you request it no later than 60 days after you receive this notice. In addition, if you find that any information contained in the report you receive is inaccurate or incomplete, you have the right to dispute the matter with the reporting agency. Name: Address: Phone: CSC Credit Services, Inc. P.O. Box 619054, Dallas, TX 75261-9054 1-800-392-7816 If vou have anv Questions regarding this notice please contact: Contact Name: Kurt Kastendick Lender's Name: Iowa State Bank & Trust Company Address: 102 S. Clinton St., Iowa City, IA 52240 Phone: 319-356-5800 P.O. Box 1700, Iowa City, IA 52244. 1-8QO.247-4418 Member FDIC. Equal Housing Lender NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part ofthe applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is: Federal Deposit Insurance Corporation 2345 Grand Avenue, Suite 1500 Kansas City, MO 64108 We appreciate your interest in working with Iowa State Bank & Trust Company and wish you well. Sw Kurt Kastendick Senior Vice President U~..L4.UI Preliminary IP13 MINUTES PLANNING AND ZONING COMMISSION MAY 3, 2007 - 7:30 P.M. EMMA J. HARVAT HALL - CITY HALL MEMBERS PRESENT: Dean Shannon, Elizabeth Koppes, Wally Plahutnik, Ann Freerks, Charlie Eastham, Bob Brooks, Terry Smith STAFF PRESENT: Bob Miklo, Karen Howard, Sarah Holecek OTHERS PRESENT: Steve Gordon, Ron Amelon, Sharon Sorensen, Mike McLaughlin RECOMMENDATIONS TO COUNCIL (become effective onlv after seoarate Council action): None CALL TO ORDER: Freerks called the meeting to order at 7:30 pm. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA No discussion. REZONING 1 DEVELOPMENT ITEMS REZ06-00025, discussion of an application submitted by MBHG Investment Co., LC for a rezoning of 15.42 acres of property from Medium Density Single Family Residential (RS-8) to High Density Single Family Residential (RS-12) for property located south and west of Whispering Meadows Drive. (45-day limitation period: 5/18/07) SUB06-00017/REZ06-00026, discussion of an application submitted by MBHG Investment Co., LC for a preliminary plat of Whispering Meadows Subdivision Part 4, a 124-lot, 34.86-acre residential subdivision and rezoning from Medium Density Single Family (RS-B) zone and High Density Single Family (RS-12) zone to Planned Development Overlay Zone (OPD-8 and OPD-12) for property located south and west of Whispering Meadows Drive. (45-day limitation period: 5/18/07) Eastham recused himself indicating that he was president of the Board of Trustees of the Housing Fellowship, a non-profit affordable housing deveiopment partnership which was the general partner in a limited partnership which owned property within the 200-foot boundary of the properties subject to the rezoning request. Eastham left the meeting room. Howard gave Staff Report. The applicant had requested a rezoning of a portion of the property to allow a mixture of housing types within the proposed development. The central portion would be single-family townhouses. The South District Plan called for a mix of small-lot single family and duplexes; townhouses were a type of single-family dwellings which were becoming increasingly popular within Iowa City. The recently adopted revised Zoning Code contained new standards for townhouses to assure that neighborhoods were attractive and livable; Staff felt that the standards would be sufficient to take care of the design concerns expressed in the South District Plan. The applicant proposed to maintain an RS-8 zone transition area of single family homes between the existing development to the north, zoned RS-5, along the north side of Whispering Meadows Drive and also along the south side of the development which butted up against the Sycamore Greenway. The transition zone would help to concentrate units in the center of the development so garages would face private open space instead of public open space along the Sycamore Greenway and provide a buffer between the different housing types to the north. Planning and Zoning Commission May 3, 2007 Page 2 The site contains a number of sensitive features. Woodlands are located on the western portion, a blue- line regulated stream corridor which contained a series of wetlands flows through the center of the area and a series of fingers of wetlands flows to the north and to the east. Because of those sensitive features, the site would be difficult to develop. The developer had requested the rezoning in order to cluster the development away from the sensitive features of the site. A number of traffic implications would occur as a result of rezoning the property to high-density single family. Sycamore Street was the nearest arterial street to the development; Lakeside Drive, a collector street, was nearing traffic capacity. Grant Wood School, located near Lakeside Drive, increased the likelihood of pedestrian - vehicle contiicts. The Sycamore Greenway wound around the development property on the west and south sides, Staff hoped to limit crossings of the Greenway. The proposed logical crossing would be equal distance from Lakeside Drive and a future arterial street which would go further south of the property. Approximately 850 trips/day would be triggered by the proposed development which would put Lakeside Drive over its traffic capacity. Therefore the City felt that there was a need for another collector street from the development to the west to Sycamore Street. Staff felt that the proposed rezoning from RS-8 to RS-12 in the central portion of the property would be compatibie with the Comprehensive Plan and with the surrounding neighborhoods, provided that the secondary access issue to the property was resolved by extending Whispering Meadows Drive to the western edge of the Sycamore Greenway to provide for an eventual extension to Sycamore Street. An unresolved issue was who would be responsible for paying for the cost of the proposed connection across the greenway to hook up with General Quarter's subdivision and the eventual street connection to Sycamore Street. The Developer was oniy willing to pay for the extension of the street to the edge of the property. REZ06-00026: Howard staid that the first rezoning was proposed to increase the density form RS-8 to RS-12. This second rezoning was for the Planned Development Overlay zone for the Sensitive Areas. Woodlands were located on the western portion of the property. Fingers of wetlands located along the stream corridor were fed by stormwater outlets from previous developments surrounding the property. The developer was required to preserve 50% of the woodlands located on the property. The applicant is requesting approval to allow more than 50% of the woodlands to be cleared in exchange for planting replacement trees. The developer intended to preserve 38% of the existing woodlands and plant 265 repiacement trees on the property along the stream corridor, in the middle of the wetlands mitigation, along the edges of the buffer and to plant one tree in the front yard of every home in the development. Staff felt that the measures proposed by the developer to preserve and replace trees met the requirements of the Sensitive Area Ordinance (SAO). The 30-foot stream corridor extended east to west across the center of the property. The SAO required a 50-foot buffer around the stream corridor anywhere there was a corresponding second or third sensitive feature. Due to wetlands and woodlands being located within the stream corridor, much of the corridor wouid have to have a buffer on either side. Preservation of the stream corridor on the east side of Verbena Drive would be difficult as the bed and bank were not well defined and the topography was very flat. The applicant proposed to grade-out much of the area and reconstruct a large portion of the stream corridor and wetland cells. Staff felt that if the compensatory mitigation for the wetlands was acceptabie, the impacts to the stream corridor would be acceptable provided that a buffer of equal to or greater than what would otherwise have been required for the existing stream corridor and wetlands was provided in the mitigation plan. In order to develop the property, the applicant would disturb wetlands which would require 2.26 acres of replacement wetlands according to SAO guidelines. The applicant had submitted a wetland mitigation plan to the City and to the Army Corps of Engineers. Because more than .5-acre of wetlands would be disturbed, the longer gO-day review period through the Corps of Engineers, the EPA Fish and Wildlife Service and the Iowa DNR was required. The applicant had not yet received approval of the proposed mitigation plan so Staff recommend that one of the conditions of the CZA stipulate that the Plan be approved before any development activity be allowed to occur on the site. Planning and Zoning Commission May 3, 2007 Page 3 Staff had reviewed the proposed wetland mitigation plan with Liz Maas, a wetland specialist, and found the mitigation pian to be a credible plan for replacement of the existing wetland and stream corridor. If successfully established, it could result in an improvement over the exiting low quality wetlands. Given that the proposed wetland mitigation area with a 50-foot buffer would be greater than the original wetlands, stream corridor and associated 100-foot buffer, Staff found this to meet the intent of the SAO. The mitigation site would be surrounded by a residential neighborhood. Because it is unlikely that construction of the homes in this development will be completed within the typical required 5-year wetland monitoring period, Staff recommended that the wetlands be monitored for as long as home construction is occurring on the lots that surround the wetlands. Also staff recommends a requirement for written reports to be submitted to the City after every site visit rather than just on an annual basis as proposed in the mitigation plan. Additionally a credible long term plan detailing maintenance and monitoring responsibilities including estimates of costs and how often and what types of maintenance will be necessary should be submitted as part of the subdivider's agreement at the time of final plat. The subdivision design consisted of 122 residential lots. The developer will need to extend Whispering Meadows Drive across City property in the southeast corner to connect with the next development to the south. The original design submitted called for a cul-de-sac, by extending the street to the west, the developer was able to gain two additional lots with the current plat which should help to mitigate the costs of building Whispering Meadows across the Greenway. The developer had requested a sidewalk waiver along Outlot A along the west side of Verbina Drive. Sidewalk waivers have proven to be problematic in the past. Residents in neighborhoods where sidewalks had been waived question why there are gaps in the sidewalk network and request that the City build those sidewalks at taxpayer expense. The City had recently adopted a "complete streets policy" that called for streets to be built for all users including pedestrians and bicyclists. Staff recommended that the streets be complete streets and the developer be required to build the complete sidewalk. Outlot C would be dedicated to the City as part of the open space requirement which would provide access to Sycamore Greenway to the south. Howard said Staff recommended that REZ06-00025, a request for a rezoning of 15.42 acres from Medium Density Single Family Residential (RS-8) to High Density Single Family Residential (RS-12) for property located south and west of Whispering Meadows Drive, be approved subject to a zoning agreement specifying that the developer will be responsible for constructing Whispering Meadows Drive to the west edge of the Sycamore Greenway to provide for adequate secondary access for the property proposed for rezoning. Staff recommends that REZ06-00026/SUB06-00017, a request for a rezoning from Medium Density Single Family Residential and High Density Single Family Residential (RS-8, RS-12), to Planned Development Overlay 8 and Planned Development Overlay 12 (OPD-8 and OPD-12), and the Sensitive Area Development Plan and preliminary plat for Whispering Meadows, Part 4, an approximate 34.86 acre, 122-lot residential subdivision located west of Whispering Meadows Subdivision Parts 2 and 3, be approved, subject to the resolution of deficiencies ad discrepancies noted in the Staff Report with regard to the sidewalk connection and to a Conditional Zoning Agreement specifying that . the wetland mitigation plan must be approved by the Army Corps of Engineers and all other applicable State and Federal agencies; . Copies of all site visit reports and annual monitoring reports submitted to the Army Corps of Engineers will also be sent to the City; . The wetland mitigation site will be monitored by a wetland specialist for as long as home construction is occurring on lots that surround the wetlands with written reports submitted to the City after every site visit (at least 3 reports per construction season) and any damage to the wetlands repaired . Prior to final plat, submittal of a maintenance plan prepared by a wetland specialist and approved by the City for the wetland areas and private open space within outlots A and B, detailing long term maintenance responsibilities and estimates of maintenance costs. Plahutnik said it appeared that the eastern portion of the stream that ran north-west appeared to have been disturbed and straightened at a previous time. Howard said the area had been farmed over the years. The area was fed by stormwater, wetlands had formed because the area was so flat. Planning and Zoning Commission May 3, 2007 Page 4 Freerks asked what would be the cost in terms of extending the road. Howard said the City Engineer had estimated the cost of constructing the road across the greenway with a 20% contingency at approximately $260,000. Brooks asked what was the precedent for requiring the developer to the east to make the connection through the entire distance of the greenway instead of the two developers sharing the cost. Howard said it was a judgment call as to whose development would cause the need for the street connection. Staff felt it was unlikely that persons residing in the General Quarters development would travel to the east as most destinations in the City were to the north and west. If the proposed development were not to develop, it would be unlikely that a connection across the greenway would be needed. Miklo said the property being discussed was being up-zoned, the property to the west was not. Koppes asked with respect to the proposed replacement trees that were to be planted in the yards, would there be any protections placed on the trees? Could the homeowner cut them down, what if a tree died? Miklo said in the SAO, a time period for which the developer had to maintain the trees was specified. Generally homeowners wanted to maintain the trees as a benefit to their property values. Plahutnik asked if the wetlands were not being maintained could occupancy permits be withheld until the wetlands were brought up to viable standards. Holecek said City legal staff was in the process of working with the developer to try to design a workable maintenance mechanism. The idea of a continuance of maintenance for those lots would make them difficult to sell. It was an unusual application, the City did not have another example of this type of maintenance obligation for a large development within the City. Steve Gordon, AM Management, project managers for MBHG Investors. Gordon thanked Staff for their assistance, it had been a long process over the past year. The site had been challenging; it had a lot of natural features to protect while at the same time protecting the investor's ability to sell the lots and build affordable housing. A good mix of housing had been proposed, the integrity of the existing neighborhoods had been protected and through clustering a nice neighborhood which enhanced the existing natural features had been proposed. Areas of disagreement: Requirement to install a sidewalk along the west side of Verbena Drive: All lots within the subdivision could access the entire subdivision and the City trail system without going out of their way and only crossing the street at an intersection. The exception would be lots 66-74, if they wanted to go north they would have to go south, cross the street, then go north. The developer felt that the large stretch of sidewalk along Verbena would be an undue cost burden to place on the residents. Maintenance of Wetlands during Construction: 5-years was normally required, they'd talked about 10- years or when construction on the lots surrounding the wetlands was completed. It was Gordon's understanding that they'd compromised on a 10-year requirement or when all the lots around the' wetlands were completed, whichever came first. It was possible that a homeowner or builder could purchase a lot(s) and hold them for a long period of time. The developer felt that there needed to be some type of cap on the responsibility time limit. The City had very strict ordinance(s) regarding building requirements for stormwater runoff; those restrictions coupled with a 10-year monitoring and maintenance of the wetlands would be adequate to establish the wetlands. Gordon requested that la,nguage regarding 1 O-year limitation or when all the lots were developed be placed in the CZA Open Space had not been discussed at the Staff level yet. 'Fees in lieu of' was noted in Staff's Report. Gordon stated that he felt the development had adequate open space. The developer had offered the City a large parcel which was continuous with currently owned City space and trail system but the City had declined the offer. The developer felt it was not right that the City had declined their offer but would require fees in lieu of. Street connection from the subdivision to connect with general quarters. The developer wondered if an additional access was really necessary as there would be three separate access points - Whispering Meadows Drive, Indigo Drive and Blazing Star Drive. At issue was also who was to pay for the Planning and Zoning Commission May 3, 2007 Page 5 construction of Whispering Meadows across City land. They'd accommodated the request to make Whispering Meadows Drive a collector street, it had originally been designed as a cul-de-sac. They had lost available land because of the street re-design and it had increased their construction costs. A portion of Whispering Meadows Drive would be for the greater public good, which was the definition of a coilector street. The developer felt it was within their rights to assert that the City pay for a portion of the street. The developer took issue with the City requesting them to pay for the costs of constructing Whispering Meadows Drive across the City Greenway land to which the City held title. The developer should not be required to pay for the costs of public improvements that extended beyond the platted boundaries of their subdivision; the extension of Whispering Meadows Drive across the Greenway was not necessary to serve the subdivision from an access standpoint alone. Under City Code, a developer was not required to extend streets outside the boundaries of the subdivision across public property. If the City chose to be a landowner, they should not be exempt from the requirements of the City Code. Requirement of Whispering Meadows Drive to be a collector street was inconsistent by definition with the claim that it would only serve their residents. A coilector street served a larger area and would benefit a much larger area than just the proposed development. It would be unfair to place the financial burden completely on the homeowners of their subdivision. Design and location of the crossing across the Greenway had been inconsistent over the years. The land was being up-zoned but due to clustering and the existing natural sensitive features on the land actual density would be much less than allowed by RS-5 zone. The cul-de-sac lots would have been much larger and more desirable; now every lot along Whispering Meadows Drive would be less valuable as they would be on a collector street as opposed to a quieter cul-de-sac. To burden the 122 homeowners with the estimated costs of public improvements of $270,000-$300,000 would amount to an increase in thousands of dollars per lot for public improvements to iand owned by the City which was unreasonable and unfair. Koppes asked Gordon regarding the Good Neighbor policy. Gordon said they'd had two different meeting nights in the Saddlebrook Club house. They'd sent letters to property owners within the 200-foot radius. The plan had been a little different at that time. Shannon asked Gordon what was his understanding of the home owner's association responsibility for maintenance of the wetlands. Gordon said they intended to put together a game plan of what would be required over time to maintain an area such as the proposed development. It was their intent that once everything was sold that a homeowner's association would be created and a small yearly fee would be put into a kitty that would go toward long-term maintenance of the wetlands. The developer's intent was to give the association a blue-print of how to monitor and maintain the wetlands. Smith summarized Gordon's 4 primary areas of discrepancy: requirement of fees in lieu of open space; crossing for the greenway; sidewalk; limitation period for wetland maintenance, either during time of construction or 10-years which ever occurred first. Gordon said that was accurate. Those were the 4 areas in which they disagreed with Staffs recommendations, the critical one being the crossing of the greenway which had the potential to make the project not even feasible to undertake. Howard said Parks and Recreation Department did not accept land that was not suitable for active park space. For the City to take on land which had numerous sensitive features on it was more of a burden than a benefit to the public as far as park space went. The Neighborhood Open Space ordinance intended for open space to be flat, usable, playground type space. It was up to Parks & Recreation whether they wanted to accept the land or not, if they did not then the ordinance specified that fees should be paid in lieu of. The City Council would decide this particular issue. Freerks asked if the fire department had commented on the proposed accesses to/from the development. Howard said generally the more street connections the better for emergency access and the efficiency of providing public services over time. Due to not knowing how much development would actually occur on this property because of the sensitive features, it had been difficult early on designing street connections. Planning and Zoning Commission May 3, 2007 Page 6 When General Quarters had been designed it had not been known if any development would occur on this piece of property or not. The City had tried to purchase a large portion of this property to add to the Sycamore Greenway because it had a lot of sensitive features on it but that negotiation with the property owner had not worked out. Ron Amelon, MMS Consultants was present to answer questions from the Commission. Public discussion was opened. Sharon Sorenson, 26 Amber Lane, said she had a listing of signatures regarding removal of the wooded area in the Sycamore Greenway. She had lived in her house for less than one year; one of the reasons they had purchased the house was because of the wooded area behind it. The individuals who'd signed the petition were concerned about the loss of the woodlands and the wildlife and the fact that all the houses would be constructed in an area where the land was already saturated with water and run-off from downspouts and people residing in the area. With the loss of trees, the land would soak-up less water and it would be at least 50-years before the bicycle path would have shade again. She had attended the previous two good-neighbor meetings. In the first meeting the developer had indicated that they would only cut down 50% of the trees, at the second meeting they had said that all the trees in the area would be removed. Sorensen said the intent of the petition was to request that consideration be given to preventing the trees from being cut-down. Miklo indicated in which areas trees would be removed; not all the trees adjacent to the greenway would be removed. Gordon said in the original plan with the cul-de-sac they had been able to preserve more trees in the northwest corner because it was a cul-de-sac and not a through street. Aiong the north edge of the property the developer had always planned to create a drainage way to take care of water; any trees that were not in the buildable area would be preserved to the best of the developer's ability. By pushing the street through, the tree situation was clearly different than the original proposal. Public discussion was closed. Motion: Koppes made a motion to defer REZ06-00025, an application for a rezoning of 15.42 acres of property from RS-8 to RS-12 and SUB06-00017/REZ06-00026, an application a preliminary plat of Whispering Meadows Subdivision Part 4, a 124-lot, 34.86-acre residential subdivision and rezoning from RS-B and RS-12 to OPD-B and OPD-12 for property located south and west of Whispering Meadows Drive. Shannon seconded the motion. Shannon said he was also concerned with the proposed removal of trees and would like additional information on the footprint(s) of the house and streets where trees were to be removed and additional information on the long term maintenance and protection of the wetlands. Smith said to paraphrase Sorenson's concern's, #1) runoff which the development was taking care of and #2) sheer loss of the forestry, trees and aesthetics of the area which had been the reason why she'd purchased her home. The area was not a dedicated parkway which would guarantee that the trees would continue to exist so unfortunately concern #2 was outside of her property owner's rights. The only way to preserve the area would be for private individuals to purchase the lots, the Commission could not hinder the developer's ability to develop their land. Smith said issues between the developer and Staff included 1) Sidewalk - he felt the sidewalk should be required. In his short tenure with the Commission he'd already seen sidewalk issues come before the Commission, he'd prefer to have a sidewalk system maintained on both sides of the street. 2) Requirement to monitor, maintain and report three times throughout the construction season. He agreed with the applicant that once the lots were sold it was out of the developer's hands and some sort of sunset or clouding clause should be included. A limitation set at 10-years or completion of the development seemed reasonable to him. 3) Open space fees in lieu of - if 13-acres out of 34-acres were to remain as open space, it seemed to be a valid argument that fees were unreasonable. 4) Crossing of the Greenway. They were trying to develop entry-level, small lot, affordable housing. The more burden put on the developer the more which would get passed on to the homeowner and the less likely they would end up with affordable housing. Just because the City owned property didn't mean that the City Planning and Zoning Commission May 3, 2007 Page 7 itself would pay for the expenses, the taxpayers/all the members of the community would pay if the City had to pay for the development. People incurring an expense should pay for that expense, an expense which would benefit only a few living in an isolated area should pay for that expense and it should not be passed on to and spread among the masses. The extension didn't seem to benefit the City as a whole, it appeared to benefit that general isolated area. Smith felt the cost should be born locally and isolated. His preference would be a 50/50 split. Each developer should extend the street 50% of the way. Miklo said the 50/50 split would not be possible, there would not be a rezoning to the west so the City would incur any portion not paid by this developer. Koppes said her main concern was the overall traffic flow in that area. Adding that many more properties to that general area without Sycamore Street being improved and without a guarantee when the other road would be instalied would make Lakeside Drive a very dangerous place. The sidewalk needed to be installed. She was also concerned with a homeowner's association being responsible for maintenance and monitoring of the wetlands. What if the association dissolved or neglected the area, there would be no enforcement mechanism. Her preference was to not have a limit in years (i.e. 10-years) but to have it stipulated as "when construction is finished". Plahutnik said the developer was offering wetlands as open space in lieu of payment. There were wetlands on the property and what the residents of the neighborhood would want would be soccer fields and baseball diamonds. The sidewalk should be installed, trying to resolve sidewalk issues after the fact was impossible. He had no wish to encumber what a developer could do with their property with respect to trees; wooded lots were worth more. The City did own the property under the Greenway but it was not for recreational or financial benefit. It was part of the stormwater management program which benefited the entire district. He saw the crossing need as generated by the proposed development. He didn't feel that it was very fair that the development pay for the entire expense but the majority of the need was generated from the development. Freerks said she agreed with the prior comments and Staffs opinion regarding the installation of the sidewalk. Wetlands, mitigation and maintenance plan - she'd like the stipulation to be "until completion of construction" as she felt it was important to assure that maintenance was done property so no issues would occur in the future. The connector street was a tough call, she felt that the General Quarters Subdivision had taken care of their responsibility to the north and similarly the Whispering Meadows connection would benefit the proposed development the most. She would agree that the development pay for the costs. Trees and wooded lots - wooded lots sold very well and she hoped that the developer would do the right thing. The motion to defer passed on a vote of 6-0 (Eastham recused). Eastham rejoined the Commission. OTHER Consider a request submitted by Mike McLaughlin to amend the zoning code to allow duplexes on lots narrower than 80 feet without access to an alley or rear lane. Miklo said a letter from Mike McLaughlin had been included in the Commissioner's information packet. With respect to this matter they could decide not to study it, study it and put in on the pending list or study it and put it at the top of the pending list. Staff felt that during the rewrite of the Zoning Code there had been a lot of discussion regarding iot width and configurations; a lot of compromise had been achieved during those discussions. At this time, Staff did not see the need to re-open those discussions. Mike McLaughlin, property owner of 315 S. Dodge Street, said the existing structure on this particular parcel of land was not well maintained. Lot size was 46 x 160 square feet, 50-feet deep with an existing driveway along the north side of the house, a shared driveway along the south with an easement for lots 315 & 317 North Dodge Street. McLaughlin said he was requesting latitude to 14-4B-5-ltem F -Access. Planning and Zoning Commission May 3, 2007 Page 8 Previously there had been an alley which had run north and south, a section was currently owned by a property on Burlington Street. When the former alley had been vacated, McLaughlin did not have the vision or knowledge that City Code would change therefore limiting the ability to develop properties within the block. The current zone would permit multi-family development which would require a wider drive to access parking in the rear. He was requesting consideration for a less dense option with a two-family use but the current code would not allow that option. He would like an amendment to the current code or exceptions to allow a less dense 2-family use for his particular lot. The existing structure was a single- family structure. Eastham asked why the applicant was interested in a duplex or 2-family use. McLaughlin said under the current code based on the restrictions on the lots, set-backs, driveway widths and buffers that he would be able to construct a more appealing 2-family use building rather than a of multi-family structure. For persons residing in the structure a 2-family use would be more desirable than multi-family. Eastham asked what population he would be marketing the 2-family use to. McLaughlin said probably to student rentals. Eastham asked if McLaughlin would consider marketing to non-student persons. McLaughlin said he'd considered developing it and selling it. If he was limited to a multi-family use, he'd probably build and sell it as condominiums. Eastham asked if McLaughlin had additional properties along Dodge Street or in the neighborhood that were already duplex configuration. McLaughlin said not in that particular block, he did have properties further south. Miklo said Staff and McLaughlin had looked at a couple of multi-family proposals but they didn't meet Code. Given how narrow the lot was he was not sure a multi-family unit could be constructed on the lot. Howard said even with concessions, it was questionable if a duplex could be built on the lot. The narrowness of the lot constricted the use, not necessarily the zoning regulations. McLaughlin said he'd had some discussion with a neighbor on Johnson Street who owned a property west and one lot to the south of his lot. An existing driveway serviced two properties but that neighbor was hesitant to accept a minimum of 6 more vehicles on their driveways. He'd also need to make arrangements with an additional property owner whose property had a tail of the alley on it. Eastham asked if McLaughlin built a condominium structure, who he would market those units to. McLaughlin said parents of college students or perhaps young professionals. Holecek said it was important to note that when making land use decisions it was not who would occupy the particular land use but whether the land use was appropriate given the inherent characteristics of the property around it. Who the structures would be marketed to was not a valid basis for making a land use decision. Miklo said the intent of the RNS-20 zone, Neighborhood Stabilization Residential zone was to stabilize and preserve the character of older neighborhoods which contained a mix of single family housing, duplex, single-family structures which had been converted to multi-family and properties which had been redeveloped to muiti-family housing. Freerks said she'd attended the Central District Quality of Life meeting. During roundtable discussions, the concern that neighborhood stabilization was not doing its job had been raised and discussed. Public discussion was closed. Koppes asked Miklo to review the Commission's To-Do list. Miklo said regarding the new subdivision regulations - a draft had been distributed to the HBA and other interested groups. A 30-day comment period end at the end of May. Revisions would go before the Commission and they would also have a series of public meetings which could go into the fali. The Central Planning District had one final focus meeting in May and then another public workshop in June. A considerable amount of staff time would then be required to write up the Central District Plan document and a series of public input meetings Planning and Zoning Commission May 3, 2007 Page 9 would occur over the following several months. CB-10 zone was a high interest item which needed to be addressed in the very near future. CB-2 zone should be addressed at some point as well. Brooks said the Commission needed more comprehensive information on the issue that McLaughlin was requesting. He'd prefer to place it on the study list but it would be non-priority and have to be worked in as Staff's time permitted. Plahutnik said per Miklo's reading of the intent of Neighborhood Stabilization Residential zone, keeping existing single family homes from being developed into multi-family homes was specifically cited as an intent of the Code and the Code was working very well in this instance. It raised a very high bar of standards and all the pieces of the Code had to be met. Freerks said she agreed with Plahutnik. The revised Code had not been in operation long enough to consider making changes such as those being requested but if the Board did decide to review the request it would need to be placed at the bottom of the work list. She did not support a review of the zoning code in this regard because it has not been in effect long enough. Eastham said he'd support the notion of looking at this further. Smith said he'd support putting something more general on the pending list such as maintaining a listing of concerns with the Code that could be referenced in the future when the Commission was reviewing I considering those particular Code items. Howard said she currently maintained such a listing. Freerks asked if there was a majority of the Commission that wanted to place Mr. McLaughlin's request for review of the zoning code provision with regard to the access issue on his property in the RNS-20 Zone. A majority of the Commission indicated that they did not want to study this issue further at this time. CONSIDERATION OF THE APRIL 19. 2007 MEETING MINUTES Smith made a motion to approve. Brooks seconded. Motion approved by a vote of 7-0. ADJOURNMENT Smith made a motion to adjourn the meeting. Brooks seconded. Motion approved by a vote of 7-0. The meeting adjourned at 9:31 p.m. Minutes submitted by Candy Barnhill. slpcd/minutesfp&z12007/05-03~07 .doc Iowa City Planning & Zoning Commission Attendance Record 2007 A. FORMAL MEETING Term Name Exoires 1/18 2/01 2/15 3/01 3/15 4/05 4/19 5/3 Brooks 05/10 X X X X X OlE X X Eastham 05/11 X X X X X X X X Freerks 05/08 X X X X X X X X Koppes 05/07 X X OlE X X X X X Plahutnik 05/10 X X OlE X X X X X Shannon 05/08 X X 0 X X X X X Smith 05/11 X X X X OlE X X X B. INFORMAL MEETING Term Name Exoires 1/29 2/26 4/16 4/30 B. Brooks 05/10 X X X X C. Eastham 05/11 X X OlE X A. Freerks 05/08 X X X X E. Koooes 05/07 X OlE X X W Plahutnik 05/10 X X X X D.Shannon 05/08 OlE X X X T. Smith 05/11 X X X X Key: X = Present 0 = Absent OlE = Absent/Excused MINUTES Iowa City Airport Commission May 15, 2007 Iowa City Airport Terminal- I :00 PM DRAFf Members Present: Howard Horan, Chair; Janelle Rettig, Greg Farris Members Absent: Randy Hartwig, John Staley Staff Present: Michael Tharp Others Present: Kim Painter, Bob Elliot, Steve Atkins, Ross Wilburn, Anthony Joslin-Lemere, Tom Schnell DETERMINE QUORUM: Chairperson Horan called the meeting to order at 1:00PM. Tour of Select Airport Facilities and Hangars Horan gave a brief introduction and thanked the guests for attending the tour. (Horan left) Guests were given a tour of airport facilities and a presentation was made by Tom Schnell in the Operator Performance Laboratory / University of Iowa Hangar. Adjourn: Meeting Adjourned at 2:00pm. a;J Airport Commission May 15, 2007 Page 2 0[2 Airport Commission ATTENDANCE RECORD YEAR 2007 {Meetine Date TERM 1/11 2/8 3/8 3/28 4/12 5/10 5/15 NAME EXP. Randy Hartwig 3/1/09 X X X X X X OlE Greg Farris 3/1/13 OlE X X OlE X X X John Staley 3/1/10 X X X X X X OlE Howard Horan 3/1/08 X X X X X X X Janelle Rettig 3/1/12 X X X X X X X KEY: X = Present o ~ Absent OlE ~ Absent/Excnsed NM = No meeting --- ~ Not a Member ~ DRAFT MINUTES City of Iowa City Animal Care Task Force April 12, 2007 - 6:00 P.M. Meeting Room E -- Iowa City Public Library Call to Order: Meeting called to order at 6:07 p.m. Members Present: Pat Farrant, Jane McCune, Teresa Kopel, Paula Kelly, Lisa Drahozal Pooley Members Absent: Staff Present: Misha Goodman Others Present: Roxanne Schomers, John McLaughlin, Trish Wasek Old Business: I. March 8, 2007 minutes approved as presented. 2. Continuation of Committee Discussion Misha Goodman relayed staff comments, changes and additions to the list of ordinances. She also provided staff suggestions for the permits/fees discussion. Lisa Drahozal Pooley will revise the ordinance list and send to members. Misha Goodman will meet with legal counsel concerning the ordinance, permit and fee possibilities. Pat Farrant discussed various spay/neuter model programs. Misha Goodman said that in the proposed renovation ideas for the Animal Center, space would be included for a spay/neuter clinic. There are three options for Center expansion: building up, building out or a new location. Teresa Koppel reviewed her most current version of the landlord survey. 3. Permit and fees discussion tabled until 5/17/2007 meeting. 4. Statistics/educational seminars discussion tabled until 5/17/2007 meeting. 5. County meeting follow up Misha Goodman reported that there have been no further meetings with the county since our last meeting. 6. Exotic animal state law follow up Misha Goodman said that one part of the law passed with minor amendment HF888. Guests John McLaughlin and Irish Wasek added that the amendment allows a person with a USDA license to be exempt from the law, but that the state department of agriculture will have a right to investigate complaints. 7. Continue Center hours extension discussion/budget results Center hours extension discussion has been tabled until the 5/17/2007 meeting. Due to a problem with the budget documents, Misha Goodman is waiting to find out for certain what the Center budget will be. New Business: I. The April 26 Animal Care Task Force meeting has been moved to May 17. June meetings will be on 6/14 and 6/28. Same time and location. Recommendations to City Council: When contracts with the Iowa City/Coralville Animal Care and Adoption Center are written or renewed, the Animal Care TaskForce strongly recommends to the Iowa City Council that these current policies continue to be included: I) There is no limit to or cap on the number of days that an animal will remain in the Animal Center. 2) All animals will be subject to the policies ofIowa City, including but not limited to Quarantine Procedure, Holding and Impound Procedure, Adoption Procedure, Euthanasia Procedure, and Emergency Medical Procedure. The Animal Care Task Force believes public opinion supports these policies. Task Force Member Comment: Lisa Drahozal Pooley announced the upcoming Ilam - 4 pm June 9th, 2007 Bully Workshop: Breed Specific Education. The workshop is organized by Andrea Kilkenny, a Center employee, and is geared towards owners, potential adopters, trainers, rescue/shelter personnel, and pet care business owners, as well as anyone interested in learning more about the American Pit Bull Terrier and related breeds. Cost for the registration is a donation of$25. For questions or to register, contact Andrea at 319-594- 4146 or pitbullgirI2@mchsi.com 2 Staff Comment: Misha Goodman said that Pat Farrant and Jan Ashman are stepping down from the Deer Task Force after many years of service, and so the task force is looking for others to fill these spaces. Also Misha Goodman mentioned that Ro Zelia Sorrenson-Grabin and Jan Ashman are currently writing a disaster plan. Citizen Comment: Roxanne Schomers added her agreement of the above policies recommendation to City Council. Agenda for May 17,2007 Old Business: 1. Approve Minutes of April 12, 2007 2. Continue Spay/Neuter Committee discussion 3. Coralville/County agreement discussions 4. Continue permit and fees discussion 5. Continue statistics/educational seminars discussion 6. Continue Center hours extension discussion Meeting was adjourned at 8:14 P.M. 3 G~f\ MINUTES IOWA CITY BOARD OF ADJUSTMENT MAY 9,2007 - 5:00 PM EMMA J HARVAT HALL -IOWA CITY/CITY HALL PRELIMINARY CALL TO ORDER: Carol Alexander called the meeting to order at 5:00 pm. MEMBERS PRESENT: Carol Alexander, Michael Wright, Ned Wood, Michelle Payne, Edgar Thornton MEMBERS ABSENT: None STAFF PRESENT: Sarah Walz, Sarah Holecek OTHERS PRESENT: Steven Ramirez, Tim Lynch, Randy Stevens RECOMMENDATION TO COUNCIL (become effective on Iv after separate Council action): None CONSIDERATION OF THE MARCH 28TH, 2007 AND APRIL 11TH, 2007 MINUTES Wright noted that the Board is called the Iowa City Board of Adjustment, not "Adjustments". Wright noted that the word "Hutchison" should be spelled Hutchinson. Wright said that on page four, second paragraph, the measurement "1700 It" should read 1700 sq. feet. Wright said on page 8 and 9, the name "Bus" should be spelled "Buss." Payne said on page 1, second to last paragraph, the phrase "an addition" should read "an additional property." She said on page 10, fourth paragraph, there is a run-on sentence that can be corrected with the phrase "the issue of." Wood said that on first page, last paragraph, the phrase "every want" should read "ever want." Wood said that in the same paragraph, the word "at" is missing from the fragment "there is a garage and carport the rear." MOTION: Payne moved to approve the March 28'h, 2007 minutes as amended. Thornton seconded the motion. The motion was approved 5:0 Wood said that his name is spelled incorrectly as "Woods" in the April 11'h, 2007 minutes. Wright noted that the Board is called the Board of Adjustment and not "Adjustments" Wright said that "Izaak Walton Road" is incorrectly referred to as "Izaak Walton League" on page 2 of the minutes. MOTION: Wright moved to approve the April 11th, 2007 minutes as amended. Wood seconded the motion. The motion was approved 5:0 EXC07-00004 Discussion of an application submitted by USCOC of Greater Iowa, Inc. for a special exception to allow location of a cell phone tower for property located in the Intensive Commercial (C1-1) zone at 612 Olympic Court, Walz said that the property is in CI-1 zone as shown on the map. Walz showed that while the property is a bit "set off' from general public view, it is visible from Keokuk Street. Walz said that the nearest residential zones are more than 400 feet away. Walz showed an aerial view of the property and the amount of open space between Keokuk Street and the property. Walz said that one of the specific criteria is that the proposed tower cannot be served by an existing tower or industrial property or by locating antennae on existing structures in the area. Walz said there are no appropriate structures in the area for Board of Adjustment May g, 2007 Page 2 the applicant to "co-locate" on. Walz said the proposed tower would be camouflaged in order to reduce visual impact. Walz said that a few months ago the board had considered another application in a CC-2 zone. That tower was to be disguised as a clock tower. Staff felt that in this location, the tower should be discrete but not necessarily disguised as something other than what it is. Staff felt that this current design does not call attention to itself-no strobe lighting, guy wires or trusses. Walz said that the overall structure wouldn't stand out or detract from the zone. Walz said that when the applicant first came in, they proposed a shorter tower, at a fifty-foot height. This height, Walz noted, would not accommodate co-location, which is something that is encouraged in the code. Staff felt that an increase to 60 feet would be appropriate to allow for future co-location. That way more antennae could be served by fewer towers. Walz said the proposed tower would be set back at least a distance equal to the height of the tower. Walz said that equipment would be stored away in a shed with a PVC fence around it, which will adequately screen the shed from public view. Walz said the tower would not utilize a back-up generator. Walz said that with the increased height, the tower could accommodate up to 2 additional users. Walz said that the applicant has agreed to remove the tower or any associated equipment should the tower be discontinued. Walz summarized the general standards and codes. She said that Staff's biggest concern with the proposed tower was the detraction it would have from neighboring uses but being that it is in the CI-1 zone, Staff did not feel that this design was inappropriate. Staff did not feel that this tower would generate additional traffic in the area, save for maintenance of the tower. Walz said that Staff believed this design met the general criteria. Payne asked about the sketch of the design as provided by applicant and whether it showed the fence screening. Walz pointed out the sketch, which was included in the packet. Public Hearino Open Tim Lynch, U.S. Celluiar of Greater Iowa, Inc., said that he would answer the questions of the Board and highlight a couple of things. Lynch said the fence would be bone colored. He said that they used PVC because it requires less maintenance and lasts longer. Lynch said that the area has some cell phone coverage already. However, he said that there is a depression in the geography of the area and the problem is a matter of reliability. Lynch said that while there is some signal strength, his company is trying to provide more reliable service. Lynch said that there is not a strong signal currently. Lynch asked for questions. Payne asked about the light fixture. Lynch said that his company is amenable to any light fixture the Board prefers. Lynch said he could go with the "shoe box" type, although they had proposed the other type, as illustrated in one of the sketches. Wright asked if the box style light would cause less light pollution. Lynch said he didn't know if it would have any bearing. Walz said that in either case, the lights have to meet the standards in the code, which deal with brightness and light trespass. Lynch said that the tower would look like what was being shown in the photo simulation. Lynch said that the "shroud" that covers the actual antennae would extend further down then as illustrated on the photo simulation. Thornton asked whether the "shroud" would have to be removed if other companies choose to use the tower. Lynch said no, not permanentiy. The shroud would be lifted of during installation and then repiaced. Payne asked if the tower shed was large enough for other users. Lynch said probably, but that there would most likely be other sheds built for storage, depending on the company. Lynch said the size of the fenced enclosure is 30 x 30 feel. Randy Stevens, 1929 Keokuk, noted his property on the overhead projection. He asked why this tower needed to go in that particular location. He said when he bought the property in 1983, the area was iand locked and the view with a fifty-foot tower is not very pleasing. Stevens asked why the tower has to be in an area that is already developed. Stevens said that there is undeveloped land along Southgate and why can't the tower go there? Stevens said that the tenants and customers of his building would be affected by such a tower. Board of Adjustment May 9, 2007 Page 3 Lynch said that the tower needs to be constructed in the proposed area. Lynch said that if the tower were moved towards Southgate, the tower would be closer to residential areas. Lynch said that because of the airport runways, they were limited as to where they could build the tower. They are also limited by the location of the ridgeline in the area. Lynch said that of the locations they looked at it, they felt this was one of the best locations. Lynch said that they have tried to design it with careful regard to the surrounding properties. He said he understood Mr. Stevens concerns about having to look at a tower, but that he felt the company had come up with the most appropriate design for this location. Lynch said that all of these factors went into the decision of choosing the current proposed location. Lynch said that he feels like U.S. Cellular has struck a good compromise in terms of location and design. Stevens said that the tower looks like it's being hidden, however, as an owner, he doesn't want to walk out of his office and see a sixty-foot tower. Stevens said that he's thinking there are other areas in that immediate area where there is no construction yet and why can't the tower go there? Stevens said that if there had been a tower back 1983, he'd have reconsidered his purchase. Stevens said there are 3 businesses that would be affected. Thornton asked Stevens to expand upon why he feels this tower would have an impact on his business. Stevens said that this tower wili not affect State Farm Insurance, which is his business, but it is an aesthetic issue. Public Hearina Closed MOTION: Payne moved that EXC07-00004, an application submitted by USCOC of Greater Iowa, Inc. for a special exception to allow location of a cell phone tower for property located in the Intensive Commercial (C1-1) zone at 612 Olympic Court, be approved. Wood seconded the motion. Wright said that the proposed tower would be erected in an area with limited signal reliability. Wright said that the tower would be filling a gap in that particular coverage area. Wright said that the tower would be constructed to be as inconspicuous as a cell phone tower can be. Wright said the proposed height of 60 feet does at least mitigate the effect of a bunch of different antennae sticking out all over the place. Wright said that if the tower were in an undeveloped area, it would stick out like a sore thumb. Wright said that the design is as unobtrusive as you're going to get. Wright said that it won't' be taller than necessary. Wright said the tower is set back well within the confines of the required height of such towers. Wright said that the fence around the property is adequate and the tower will not use a back-up generator. Wright said that the tower is being designed to accommodate additional users as well as it is camouflaged from public view. Wright noted that if the use of the tower were discontinued, it would be removed. Wright said that this exception would not be a danger to public welfare. It meets federai standards. Wright said that the tower could withstand 75-mile an hour winds as well as the presence of ice. Wright said that should the tower collapse, it would not cause damage to close-by structures. Wright said that it will not be injurious to existing surrounding property and will not diminish property values in the neighborhood. Wright reiterated that this design is as inconspicuous as it's going to get. Wright said the design and height are appropriate for where it sits. Wright said that establishment of this tower will not impede normal development in the zone nor will it impede future projects. Wright said the road is adequate for the traffic traveling to maintain the tower. Wright said that adequate measure for ingress and egress has been taken with regards to the construction of this tower. Wright said the lighting would meet all applicable standards of lighting codes. Wright said that the proposed structure would not detract from commercial uses of this location. Wright said that for all these reasons, he would be voting in favor. Wood said that he has no concerns except for those brought up by Randy Stevens. Wood said that it will not be injurious to use and enjoyment of surrounding property. He will be voting in favor. Thornton said that he understands the tower is not the greatest looking thing in the world, but the set back fits within the existing buildings. Thornton said it blends in and it meets the future communication needs of that particular part of the city. Thornton said that he would be voting in favor. Payne said that she'd like to clarify that part of the antennae, the lightning rod, will stick out of the shroud. Other than that, Payne said, she agrees with her colleagues. She will vote in favor. Board of Adjustment May 9, 2007 Page 4 Alexander said she too would vote in favor. The motion is approved 5:0 OTHER None BOARD OF ADJUSTMENT INFORMATION None ADJOURNMENT Meeting is adjourned at 5:45 pm s/pcd/mi ns/boa/2007 f5-9-07. doc Board of Adjustment Attendance Record 2007 Term Name Expires 1/10 3/28 4/11 4/28 5/9 Carol Alexander 01/01/08 X X OlE X X Michael Wright 01/01/09 X X X X X Ned Wood 01/01/10 X X X X X M. Shelangouski 01/01/11 X X X X X Edgar Thornton 01/01/12 X X X X X KEY: X = Present o = Absent OlE = AbsentlExcused NM = No meeting --- = Not a Member om] MINUTES Iowa City Airport Commission May 10, 2007 Iowa City Airport Terminal- 5:45 PM DRAFf Members Present: Howard Horan, Chair; Randy Hartwig; John Staley; Janelle Rettig, Greg Farris Staff Present: Sue Dulek, Michael Tharp Others Present: Mike Vedepo, Harry Wolf, David Hughes, Dave Larsen, Gary Lust, Sharon Lust, Tim Sayers, Scott Pottorof, Tom Schnell, Phillip Wolford. DETERMINE QUORUM: Chairperson Horan called the meeting to order at 5:46 P.M. RECOMMENDATIONS TO COUNCIL: Recommend approving JJR Davis Storm water Drainage Easement. APPROVAL OF MINUTES FROM THE APRIL 12, 2007 MEETING: Hartwig noted a correction on the attendance sheet of the minutes. Staley moved to accept the April 12, 2007 meeting minutes; seconded by Hartwig. Carried 5-0. PUBLIC DISCUSSION: Mike VeDepo addressed the Airport Commission about the creation of an aerobatics school in conjunction with Jet Air's flight instruction. He gave members a short description about what he was working with Jet Air to accomplish ITEMS FOR DISCUSSION/ACTION: A) Aviation Commerce Park - Harry Wolf addressed the commission. He mentioned they are continuing to work with the legal staff to complete the closing of Lot 5. Wolf commented on the current marketing strategy, that it was more geared to the single developer, but that if he continued to see interest in smaller lots, they may revisit that strategy. B) JJR Davis - Drainage Easement -Horan stated that he brought in a picture to better explain this easement. Dave Larsen pointed out the various areas in question and responded to Members' questions. Tharp then explained to Members what information is in their packets regarding this project. Discussion continued with Members voicing their concerns, and agreeing that the plans look good. Tharp stated that the next step would be to start 1 the legal paperwork on this, and then to submit it to the FAA for their approval. Rettig moved to submit for consideration to the FAA and the City Council selling a drainage easement to John and Allie Dane on the JJR Davis Fourth Addition, at the price of $14,110; seconded by Farris. Carried 5-0. C) Tom Schnell- University of Iowa - Operator Performance Labs - Tharp stated that he, Schnell, and Horan met over the past month to discuss the proposed extension of the building and office space, and that basically it would be a $300,000 project for Phase 1. Phase II would be approximately $96,000, per Tharp. Schnell then addressed the Members, giving them more specific information on the increased needs of the Performance Labs. The discussion then turned to how this project would be financed, and also how the phases would be addressed. Hartwig stated that he thinks they should come up with some real numbers on recouping costs for a project like this. Rettig asked for some clarification on the bid by McComas-Lacina Construction. Tharp stated that he has spoken with David Hughes, Earth Tech, regarding this project and possible engineering needs. The Members agreed that Phase I should be looked into, as far as cost and recouping of costs and Phase II should be put on hold until a later date. The Members would also like to know how long of a lease the University would agree to on this building. Discussion continued on the value of space like this, with Members voicing their concerns. Rettig stated that she would like to see some real numbers before she makes any decisions. D) Grass Runway - Tharp stated that this item is still on the agenda for discussion by Members. He gave them a quick update on where they are with this currently, which is to plan for this in the future. This led to a brief discussion on farmable land and wildlife issues faced by the Airport. (TAPE ENDS) Gary Lust spoke to the Commission about the area that he would like to see become a grass runway. Tharp explained how this would eliminate farmable land within the Airport. The discussion turned to how the farmable land income could be replaced with hangar rentals, as there would be room for a new hangar in this area, as well. Rettig stated that she would like to see this stay on the proj ect list for now. David Hughes explained some of the possibilities for this area, stating that the surveys being done may give the Commission more information on this type of project. E) Airport Disadvantaged Business Enterprise (DBE) FY07 Goal for U.S. DOT assisted contracts - Tharp explained the FAA's grant program that is available, noting they have made some changes in regards to the amount of money planned on being used. He noted that if airports are planning on using more then $250,000 in grant money, then a DBE program was a new requirement. He stated the Earth Tech had put together the program 2 numbers and David Hughes could better describe that process. Hughes stated that they have to show "good faith effort" in meeting these goals, which they have so far. Tharp noted the airport's goal would be to have 8% of the project funds contracted to DBE enterprises. I) Public Comment - No one spoke II) Consider a Resolution adopting the Disadvantaged Business Enterprise FY07 Goal- Rettig moved to recommend Resolution #A07-09, adopting the Disadvantaged Business Enterprise FY 07 Goal; seconded by Hartwig. Carried 5-0. F) F ANIDOT Projects - Earth Tech - David Hughes - I) Runway 7/25 - David Hughes spoke with the Members, stating that they have had quite a bit happen in the past month. He stated that the historic booklet and box culvert are pretty much tied together, as they are both funded by the same funding source. Historic booklet is complete and is out for review by the State Historic Preservation officer. Once comments are received back, Hughes stated that they will do a mock up before the final print. Hughes continued, updating Members on the various grants that are in the process of being closed out. II) South Aviation Development Study - Hughes stated that the last piece on this is the grass runway information. He hopes to have this study finalized soon. Hartwig noted that they will have a chance to discuss this study once it is received. III) South Taxilane Rehab - Hughes stated that the grading contract should be started shortly, depending on the weather. Tharp explained to Members how he was able to secure the extra funding needed to complete this rehab. a) Consider a resolution awarding contract for the Rehabilitation of South Taxilanes -- Hartwig moved to recommend Resolution #A07-10, awarding contract for the Rehabilitation of South Taxilanes to Vieth Construction of Cedar Falls for $140,794.15; seconded by Staley. Carried 5-0. IV) Hangar A Rehab - Hughes gave the Members a quick run down on bids received. a) Consider a Resolution awarding contract for the Installation of concrete Floors in Hangar Building A -- Rettig moved to recommend Resolution #A07-11, awarding contract for the Installation of concrete floors in Hangar Building A to Banes Construction for $36,999; seconded by Hartwig. Carried 5-0. V) Hangar A & B Doors a) Consider a Resolution awarding contract for the replacement of access doors on Hangar Buildings A and B -- Farris moved to recommend Resolution #A07-12, awarding 3 contract for the replacement of access doors on Hangar Buildings A and B to Liberty Doors for $16,700; seconded by Staley. Carried 5-0. VI) Terminal Apron Rehab - Hughes stated that they are working on this design currently, and that it will come after the hangar work is completed - most likely late summer. Hartwig noted some concerns on the timing of the various projects, and Hughes explained how they plan to keep disruptions at a mlmmum. VII) Obstruction Mitigation -- Hughes continued, stating that they have met with Mid American Energy, Mediacom, and others to discuss obstruction mitigation issues. He then explained how this will work under the FAA grant funding. Rettig asked for clarification on some of the cost issues. Hughes stated that they have also met with McEleney and have reviewed some of the obstructions that have been identified there. VIII) 405 Approach Surveys - Hughes stated that these surveys were sent to the FAA in January, and they finally heard back about two weeks ago on this. Hughes stated that some minor revisions were needed, and the surveys are now back with the FAA for approval. G) Airport Viewing Area - Tharp noted that they currently have one picnic table, and the other two are being weather coated. He stated that he and Farris have met a couple times to review a design layout, so they can get ready to ask for donations from people. Tharp stated that they would like to have a covered shelter in the northwest comer, which would give people a clear view of the Airport. He continued, explaining how they would have some displays and several benches, and perhaps playground equipment. Farris explained the radio kiosk capabilities and what type of displays they could make available. (TAPE ENDS) Discussion continued, with Horan talking about fencing for this area, stating that he feels the black fencing makes the area feel like a cage. The discussion next turned to the type of covered shelter the Members would like to see in the viewing area. Tharp noted that they will have $10,000 in their budget for this, starting in July with FY08's budget. Farris stated that they will look into different fencing options. H) Airport Commission Meeting Schedule - Horan stated that he would like to see the meeting schedule adjusted so that Rettig can still participate. He suggested the first or third Thursday of each month at 5:45 P.M. Rettig stated that she will have a conflict for the remainder of her term, due to DNR meetings. Members discussed their possible conflicts and a decision was made to change the next 2 meetings. The regular June meeting will be June 7th. For July, the third Thursday was selected, July 19th. Rettig 4 stated that she will not be able to make the August meeting, and members agreed to wait until the July meeting to schedule further. I) Airport "Operations": Strategic Plan-Implementation; Budget; and Airport Management - Horan stated that he has questions regarding the U of! lab project and what comes next, and he wonders ifthey need a subcommittee for this. Tharp stated that he would like to have a meeting with some general planning ideas being shared, a general work session type of meeting. He stated that this would help them to get all of their ideas out on the table. Horan stated that he would like to wait until the creek study is completed before they have this work session. J) FBO Staff Report - Wolford said he didn't have anything new to report, but did bring up the Fly Iowa Challenge. He explained the Iowa Aviation Promotion Group was doing a campaign to get the public (both flying and non-flying) to visit the state's airports, stating that there are some nice prizes being given for those who sign up and participate. Horan asked what it would take for several people to go to Manhattan (New York) for the day. Wolford stated that they would most likely leave around 7:00 A.M. and that they could land close to 9am. Horan noted that the premise ofthis question was to note that you can leave Iowa City and go anywhere in the country, and be home that night. K) Subcommittees' Reports - None. L) Commission Members' Reports - Rettig mentioned that they would like to put up a bulletin board at the Airport for posting of photos of "cool planes and/or cool people" who come to the Iowa City Airport. Hartwig mentioned an article in The Gazette where Tharp was interviewed. He also noted that he had received an email from the DOT on aviation issues. Horan noted that he talked with ICAD (Iowa City Area Development) about aerial photography, and was surprised that they weren't aware of this capacity at the Iowa City Airport. Rettig asked Tharp about the City Manager's visit, and ifhe wants any Members present. This will take place on Tuesday at 1 :00 P.M. Tharp will publish this as a public meeting. M) Staff Report - None. SET NEXT REGULAR MEETING FOR JUNE 7, 2007, AT 5:45 P.M. ADJOURN: Meeting adjourned at 8:04 P.M. 5 Airport Commission ATTENDANCE RECORD YEAR 2007 (Meetinp Date TERM 1/11 2/8 3/8 3/28 4/12 5/10 NAME EXP. Randy Hartwig 3/1/09 X X X X X X Greg Farris 3/1/07 OlE X X OlE X X John Staley 3/1/10 X X X X X X Howard Horan 3/1/08 X X X X X X Janelle Rettig 3/1/12 X X X X X X KEY: X = Present o = Absent OlE = Absent/Excnsed NM = No meeting --- = Not a Member 6