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Home My WebLink About02-10-2014 Council Economic Development CommitteeAGENDA City Council Economic Development Committee Monday, February 10, 2014 8:00 a.m. City Manager's Conference Room City Hall 1. Call to Order 2. Consider approval of minutes from September 3, 2013 Economic Development Committee meeting 3. Consider request for financial assistance from Film Scene 4. Consider Economic Development grant to assist Meta Communications in their expansion and relocation 5. Consider request for CDBG ED loan to Butter, a new breakfast and lunch restaurant 6. Update on the Status of Agreement to Establish Communication Protocol for Economic Development Activity in the three jurisdictions of Iowa City, Coralville and North Liberty 7. Committee time 8. Staff time a. Report on Tourism Improvement Districts b. EntreFest 2014 conference & sponsorship c. Real Estate Broker for Industrial Park d. CDBG Economic Development loans - repayment update e. ESRI market data information sheets 9. Other business 10. Adjournment EDC September 3, 2013 - p. 1 PRELIMINARY MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 3, 2013 HELLING CONFERENCE ROOM, CITY HALL, 8:00 A.M. Members Present: Susan. Mims, Michelle Payne, Matt Hayek Staff Present: Wendy Ford, Tracy Hightshoe, Jeff Davidson, Tom Markus, Geoff Fruin, Steve Long, Eleanor Dikes Others Present: Ashley Zitner, Mike Tylka, Vanessa Fixmer-Ortiz, Ray Heitner, and Kevin Randle (U of i students); Nancy Ouellhorst, Chamber; Pat Shafer, Corridor Business Journal; Irvin Pfab (retired) RECOMMENDATIONS TO COUNCIL: There were none. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Mims at 8:05 A.M. WELCOME AND INTRODUCTIONS: Chairperson Mims welcomed everyone and asked that those present introduce themselves for the minutes. CONSIDER APPROVAL OF MINUTES: The first action was to review the minutes of the July 30, 2013, Economic Development Committee meeting. There was no discussion. Payne moved to approve minutes from the July 30, 2013, meeting as submitted. Hayek seconded the motion. Motion carried 3-0. Davidson spoke to Members regarding the interest in the Court/Linn property, noting that interest has picked up again. He gave Members a brief history of this property, noting that about a year ago they put out an RFP for this parcel. Because of the Gilbert/College St. project, developers were not interested in the Court/Linn property at that time. Davidson continued to brief Members on a possible public/private venture, noting that the plan for this area does reflect a parking facility in the vicinity. He added that there is a lot of flexibility, however, in what they decide to ultimately pursue here. One cuestion that staff would like Member's input on is whether the project should include student housing. He noted that some of the interested developers only do student housing. EDC September 3, 2013 - p. 2 PRELIMINARY Mims asked what distinctions there would be between student housing and regular housing, and in knowing that, how can Council help the direction of development at this location. Davidson responded, speaking to some of the student -oriented developers and how they handle their projects. He noted that unit types, number of bedrooms, and building amenities typically determine if a unit is geared towards students or not. Dilkes noted that while they cannot declare 'no students,' they can certainly put conditions in the development agreement about rental versus sale of units. Hayek questioned supporting a student housing project with public dollars. Payne asked if having the Court Street Transportation Center nearby would be a detriment to selling units. She noted that perhaps this area is preferable for student housing because of that. Mims noted that she would agree with Hayek that public funds should not be part of a student housing project. Davidson. spoke to the TIF issue, noting that this parcel has been in non -tax paying status since the 1920s. Markus asked Davidson to address the range of uses that have been of interest to developers for this parcel. Davidson stated that aside from student housing, workforce housing and hospitality are the preferred uses. Two developers have said they would build a hotel on the site. Retail and office space have also been suggested. Residential does appear to be the predominant use— either student or non -student, according to Davidson. Hayek noted that at one time workforce housing was the big suggestion for this area. Davidson noted that workforce housing and townhomes have both been suggested again. Payne questioned the use of TIF at all in this instance. Mims clarified that what staff wants to know is what directives to follow in this case, such as student or non - student housing. The more precise they can be with these details, the more likely they will receive proposals suited to their needs. Members continued to discuss this parcel, questioning the timeframe for a parking deck. Markus reminded them of the other projects in the area and when they might start to see an increased parking demand. Hayek responded to the initial question of whether student or non -student housing should be supported, stating that he would not be in favor of subsidies or incentives for student housing. He spoke about some of the other projects in this area and how they might influence the demands once completed. Payne recalled the plan for the Riverfront Crossings area, stating that she did not envision student housing in this area but rather, closer to the river. Davidson agreed, noting that the site closer to the river is slated for student housing. Mims spoke to the timing of a Project, stating that she would see student housing as the last thing on the list if they are wanting to spark development in this area. She believes that office and maybe even a hotel would have a catalyst effect on the area of Riverfront Crossings. Payne stated that she agrees with Mims' assessment. Hayek asked what staff thinks about this site. Markus stated that a mixed -use building would be ideal. Mims noted the difficulty in defining workforce housing and affordable housing. Mims asked what others think about a hotel on this site, versus the standard mixed -use building. Markus noted that there appears to be an increase in hotel interest, not just here but in neighboring communities as well. He added that these developers are interested, but not without incentives. Hayek stated again that he would not be EDC September 3, 2013 - p. 3 PRELIMINARY interested in incepting student housing and would rather stay closer to the established plan for the Riverfront Crossings area. Members continued to grapple with the wording and preferences for proposals on this site. Mims reiterated that she believes timing is key for this project, and that she is not interested in entertaining a project that is predominantly student -oriented. DISCUSS EMPLOYMENT BASED FINANCIAL ASSISTANCE: Ford noted at a prior meeting that Members had asked staff to continue exploring this idea, and said that they have come up with some new ideas. She explained that staff is exploring ways to assist businesses that do not add to the property tax base but still add great value to the community and may one day request financial assistance -She explained it is often in the business' best interest to lease as opposed to buy property, especially when they are still relatively young, and in a fast growing state. The refined idea Ford presented to Members is a deferred interest loan that would be tied to a three -to -five-year growth plan, which may or may not include the purchase of real estate during the term. After each year the business would be monitored against what they had agreed to, such as the creation of "X" number of jobs. After the term of the loan, a percentage of it would be due and payable. The percentage could be negotiated in each instance. Ford asked for feedback on the idea before going further. Davidson added that they have actual business interested in this type of proposal, and that the examples provided in the memo are not just hypothetical. Mims stated that she likes the creativity of the proposal, especially finding a way for such businesses to expand and to stay in Iowa City. Payne agreed, but stated in the examples given, that amounts due and payable at the end of the term were unclear. Ford stated that staff did have trouble illustrating this, and she then further clarified that the performance metrics companies agreed to would be used as a measuring stick for how much of the loan they would be required to pay. If they met all agreed -upon metrics, then more of the loan could be forgiven; if they did not meet performance metrics, then less of the loan would be forgiven. Markus noted that staff is still working on the details as they try to find the best way to handle such a proposal. Dilkes added that the difficult part will be how they are going to secure these obligations. STAFF TIME: Davidson noted that the Harrison Street/MidwestOne project is still in negotiations. Council should see These soon. The Chauncey negotiations have run into a couple of snags, but once the developer has a couple of issues resolved they will resume. Davidson also noted there are has been some interest in the industrial park but nothing that can be disclosed yet. As for Towncrest, he noted that Williams Street is currently being reconstructed with new infrastructure and streetscape design. The Building Change facade program continues to be of interest to property owners. He also noted the City's participation in a master planning study of the 100 block of East Washington Street with key property owners in the block. COMMITTEE TIME: EDC September 3, 2013 - p. 4 PRELIMINARY None. OTHER BUSINESS: None. ADJOURNMENT: Hayek moved to adjourn the meeting at 9:10 A.M. Payne seconded the motion. Motion carried 3-0. EDC September 3, 2013 - p. 5 PRELIMINARY Council Economic Development Committee ATTENDANCE RECORD 2012 - 2013 TERM o 0 0 0 0 NAME EXP. N) -N °' w CO N -4 j O W Michelle 01/02/14 X X X X X Payne Matt 01/02/14 X O X X X Hayek /E Susan 01/02/14 X X X X X Mims Key: X = Present O = Absent O/E = Absent/Excused �.�`.®r+� CITY OF IOWA CITY .; mh' MEMORANDUM To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: January 27, 2014 Re: Agenda item #3; Request for Financial Assistance from Film Scene Introduction Film Scene, the new art -house movie theater in downtown Iowa City, is requesting three years of financial assistance from the City. They seek $35,000, $25,000 and $15,000 in FY15, FY16 and FY17, respectively. History/Background The last time a movie theater operated downtown, it was about 10 years ago in the Old Capitol Mall. Since then, two City commissioned downtown market studies (2007 and 2011) noted that a movie theater was top ranked among businesses that residents felt should be in downtown Iowa City but weren't. In 2011, Andy Brodie and Andrew Sherburne first approached the City with their plans to open an art -house cinema and were looking for input on location ideas, possible partnerships and funding opportunities they might investigate. Almost two and a half years later, in November 2013, and after extensive fundraising and awareness building, Scene 1 opened at 118 E. College Street, in a fully renovated 113 year old building that was last home to large "problem" bar. The award winning building is now known as the Packing & Provisions Building, and Film Scene's neighboring tenants are Velvet Coat and the Steven Vail art gallery on the first floor and Modus Engineering in the formerly vacant second floor. Film Scene founders still have a long term goal of opening two larger theaters in the future building at the corner of Gilbert and College Streets, but Scene 1 is the starting point. A nonprofit 501(c)(3), Film Scene operates with a professional staff guided by a committed Board of Directors. Solution When the corporate -owned theaters closed, they created an entertainment void for students and local residents at a time when the major entertainment option, drinking, was becoming more and more probiematic due to the lack of a 21-only law and a proliferation of large drinking venues. Film Scene fills part of that entertainment void and supporting it is aligned with at least two of Council's Strategic Planning priorities — Engaging in strategic economic development activities and ensuring a strong urban core. Film Scene has enjoyed the success of building a lot of support from the public ... a good sign that the public sees the good in the work they do. They raised over $200,000 through an online deadline fundraiser and in person through Founder's Circle friend raising (a $1,000 membership). January 30, 2014 Page 2 They project earnings from earned income (ticket sales and consessions) vs. contributed income (donations) in a ratio similar to other entertainment venues, and thus, are cautious in projecting too much earned income and are planning to continue to raise funds to ensure ongoing success. The financial assistance they seek from the City will only partially fill the gap remaining in the contributed income portion of their budget. Profit and loss projections over the next 3 years show a net loss of near $179,000, an amount greater than the $75,000 total request of the City. The difference of $104,500 will be financed with debt through year 3 when Film Scene projects it will run its first year in the black. As an aside, recall that the developer of the building also received City assistance of $250,000. Those funds were specifically approved to bring the building up to modern standards for roofing, HVAC and elevator. The total project costs to the developer were more than $2 million. The developer is also providing a below market rate lease to Film Scene and is thus, helping to shoulder some of the costs of ensuring an art -house cinema is located downtown. Recommendation Staff recommends approval of this funding request and forwarding it to City Council for their approval. Film Scene has demonstrated an ability to raise funds on their own and will continue to do so. They have requested a declining amount of funding over three years to help bring them to an eventual self-sustaining financial position. They have not requested their full financial gap showing their willingness to continue fund-raising and to take on debt to cover operational expenses. They have good operational capacity, a sound Board of Directors, and collaboration with the Bijou. There is demonstrated need for an art -house cinema in the community and supporting it fits with at least two of Council's strategic planning goals. Fiscal Impact Funds may be used from the Economic Development Opportunity line (10510610-448020) for the first year, and budgeted with intent to fund from Community Development (10510610- 448070) in the 2nd and 3rd years. Please feel free to call or email me with questions or comments. 118 E Cdxga54eK Sly 101 IdAeCiy, lb✓ E2240 To the Economic Development Committee Thank you for considering our request that the City of Iowa City provide $35,000 FY15, $25,000 FY16, and $15,000 FY17 funding to support FilmScene. FilmScene marks the return of a full-time cinema to downtown Iowa City for the first time in more than six years. In two separate market surveys conducted by the City of Iowa City and the University of Iowa (Marketek, 2007; Divaris, 2011), movie theater was named the most -wanted arts/entertainment addition to downtown. Downtown serves as the cultural hub of our community with art galleries and dedicated spaces for music, literature, theater and the performing arts, but a dedicated space for film has been missing. Myself and Andrew Sherburne co- founded FilmScene in 2011 with the goal of filling that gap by building a full-time, year-round cinema and film center. While developing long-term plans for a new two -screen cinema and media arts lab with local development firm Moen Group, we have been able to build an intimate 70-seat cinema in the historic and newly renovated Packing & Provisions Building located on the Ped Mall at 118 E. College St. Operating 365 days per year, our Scene 1 cinema features the best in contemporary and classic American independent cinema, foreign films, and documentaries. In our first five weeks of full-time operation, we have already sold more than 2,300 tickets and anticipate first -year total attendance of approximately 20,000. Using a conservative estimate of $20 per patron, the positive economic impact to Iowa City will be in excess of $400,000 annually. In the past year, we have raised more than $200,000 from the community in support of our effort. That includes our Founders Circle, consisting of donors at $1,000 and up, which now has more than 100 members, as well as an online, all -or -nothing crowdfunding campaign from which we raised $91,000 in 33 days with 731 backers. As most of these funds were committed to build -out and start-up costs, we are seeking partnership and support from the City of Iowa City toward our annual operational expenses. As with other local arts institutions like the Englert Theatre and Riverside Theatre, income earned through ticket sales and concessions only covers part of our operating expenses. The rest comes from contributed income such as grants, underwriting, donations, and support from local, state and federal governments and agencies. FilmScene is a 501(c)(3) non-profit with a professional staff and a committed Board of Directors. Included, please find our full Staff and Board list with bins, marketing overview and financial projections. We have developed an operating budget under the review of local accountant Bill Thomasson, who also works with the Englert Theatre. Thomasson will provide ongoing accounting services for FilmScene to help us ensure that we meet and exceed our financial goals. We appreciate your review of the enclosed materials and financial support of FilmScene. Thank you for your consideration and support of the arts in our community Sincerely, Andy Brodie FilmScene Director and co-founder FilmScene Staff Andy Brodie (Director & Co-founder) is a writer, filmmaker, and film programmer/promoter. He studied film at the University of Iowa, where he served as the programming director of the Bijou Theater. In 2005, Brodie was selected for the Telluride Film Festival's annual Student Symposium and has worked on staff at the festival every year since. Brodie's own films have screened at festivals across the country and abroad. He is also a member of the Historic Theaters committee of Preservation Iowa. Andrew Sherburne (Marketing Director & Co-founder) is a documentary filmmaker and partner in Northland Films, currently producing his third feature-length documentary in Guatemala. He is also a children's book author. Sherburne is the publisher emeritus of Little Village, Iowa City's independent alternative monthly newspaper. He has extensive professional experience as a director of marketing and has served as the director of promotion and marketing for the Hardacre Film Festival for the last four years. Emily Salmonson (Director of Operations) earned her degree in Studio Arts from the University of Iowa in 2005 and has been living in Iowa City for the better part of 10 years. She has lived briefly in Louisiana, Arizona, Japan and most recently Madison, W I, but has always considered Iowa City her home. She is a former house manager for the Englert Theatre where she realized how much she enjoys theatre management and hospitality. She is an avid traveler and is always up for a game of Scrabble. FilmScene Board of Directors Karen Chappell (Board Chair) grew up in Los Angeles, California and earned an undergraduate degree from the University of Southern California. She received a U.S. State Department Fellowship for graduate studies at the East-West Center in Hawaii earning a Master's Degree in Foreign Affairs/Overseas Operations and doing her Master's research in Tokyo, Japan at Keio University. Karen first moved to Iowa in the late 1980's, serving as the Associate Director of the Center for International and Comparative Studies at the University of Iowa. As an arts administrator, Karen served as Program Specialist with the State Foundation on Culture and the Arts in Hawaii, Executive Director of Young Audiences in St. Louis, producer of arts and educational festivals in both St. Louis and Atlanta, and while in New York City as Development Director for the Paul Taylor Dance Company. Returning to Iowa City with her husband Wally in 2008, she is currently the Executive Director of the Iowa City Foreign Relations Council. Evan Evans (Vice Chair) first moved to Johnson County in 1968 to attend the University as a Geology major, where he has lived permanently since 1975, when he and his wife Kressa started a business, Whitedog Garage, which has evolved into Whitedog Auto in Iowa City. He has a long time interest in film and photography, and is eager to see a venue for independent and foreign films in downtown Iowa City. Laura Bergus (Board Secretary) is an Iowa City native and an attorney with Hayek, Brown, Moreland & Smith, L.L.P. She has a professional background in video and multimedia production. Bergus is a frequent participant in Iowa City's vibrant downtown cultural and business community. Doug Ongie (Board Treasurer) is a community development planner at the City of Iowa City. As a planner he has managed multi -million dollar grants for disaster recovery following the 2008 flood and has also worked closely with local non-profit organizations and entrepreneurs. He has been a long-time fan of film and believes a full-time, independent cinema would be an asset to downtown Iowa City. Christine Ameling (Board Member) is a Jill of all trades. She grew up in Cedar Rapids and after spending 20+ years in Indiana chose to return to Iowa, settling in Iowa City. A life -long -learner with degrees in education and related fields (BA Education, UNI, Cedar Falls; MS, Media Science/Education, Purdue Calumet; master's work in instructional dasign, UNI; MLS, Iowa) she has worked in education, trucking, and construction. She is currently working for Baker Financial as David Barker's assistant. She has served on the boards of a shelter for victims of domestic violence, a university art museum's friends of art program, Visiting Nurse Association (Johnson County and in Indiana), and a philanthropic sorority. She enjoys being able to give back to her community and help make it the best possible oasis for a good life. Emma Barnum (Board Member) works as the administrator at the Unitarian Universalist Society of Iowa City. She has a B.A. in cinema and a J.D. in law from the University of Iowa, and is passionate about seeing Iowa City become a place where independent and classic cinema is accessible and celebrated. William Downing (Board Member) is an architect and associate principal with Rohrbach Associates PC in Iowa City. After graduation from Iowa State University in 1993, Downing worked in Waterloo, Iowa, before returning to Iowa City in 1996. Having grown up in Iowa City and now living and working in the downtown area, Downing is interested in maintaining a vibrant and diverse cultural and business environment. His experience includes participation on several community organization boards and public commissions. Mike Finlayson (Board Member) is 2nd Vice President -Retail Managing Officer at MidWestOne Bank in downtown Iowa City. He is a native Iowan and has been in the Iowa City area for over 25 years. As a banker, he focuses on small business lending, retail banking, and relationship management. He continues to be engaged with the business community and non-profit organizations such as United Way, Iowa City Area Chamber of Commerce, and Pathways. Being in the downtown market, he recognizes the need for diversity in business, arts, and entertainment to maintain a vibrant community. Finlayson is alumni of the Community Leadership Program and is long standing member of the Chamber of Commerce Ambassador committee. He is married, has one child, and resides in Iowa City. David Gould (Board Member) is Director of Imagination for the Downtown Project, a Zappos.com CEO Tony Hsieh -led organization dedicated to transforming Downtown Las Vegas into the most community -focused large city in the world. He is also the University of Iowa's first Obermann Center Public Policy Scholar and a member of its adjunct faculty. Previously, Gould served as the Associate Director of Professional Student Development, and Lecturer, in the College of Liberal Arts & Sciences at the University of Iowa. Gould is also a working filmmaker whose credits include "Freestyle: The Victories of Dan Gable," "The Checker King," and "Two Sides of the Moon." These films premiered on HBO Signature and HBO2 respectively. Gould is currently producing the feature film "Diane's Room," based on the life of legendary wrestler Dan Gable. Tommy Haines (Board Member) is a partner with Northland Films Inc. He has directed and produced two feature- length documentaries, Pond Hockey and Forgotten Miracle. He has served as programming director for the Hardacre Film Festival and as the documentary chair for the Landlocked Film Festival. He has a communications degree from the University of Minnesota and a film degree from the University of Iowa. Jesse Krettzer (Board Member, Bijou Film Board Executive Director) is a filmmaker from southern Vermont whose interests include rural storytelling, primitive cultures and acts of compassion. A graduate of Emerson College, magna cum laude, and current MFA candidate and instructor at the University of Iowa, his films have screened at festivals domestically and internationally. Jesse is the recipient of a Boston/NE Regional Emmy award, two Telly awards and a Massachusetts Cultural Council Artist Fellowship Grant. Jesse McLean (Board Member) is a media artist whose research is motivated by a deep curiosity about human behavior and relationships, especially as presented and observed through mediated images. She has presented her work at museums, galleries, and film festivals worldwide, including the International Film Festival Rotterdam, Rome Film Festival, Venice Film Festival, Transmediale, 25 FPS Festival, European Media Arts Festival, Contemporary Art Museum, St. Louis, Interstate Projects and PPOW Gallery. She is an Assistant Professor in the department of Cinema and Comparative Literature at The University of Iowa. Kembrew McLeod (Board Member) is a Professor of Communication Studies at the University of Iowa. McLeod's book, Freedom of Expression®, received the American Library Association's Oboler book award, and his co - produced documentary Copyright Criminals aired in 2010 on PBS's Emmy Award -winning series Independent Lens. His latest book, Pranksters, will be published on April Fools' Day 2014. Ravi Patel (Board Member) is a serial entrepreneur, philanthropist and political activist. Patel's businesses include Hawkeye Hotels, Backrow Studios: Film Production, Ellison Sunglasses, TelePharm: TelePharmacy solution, Built by Iowa: Business Incubator. Patel is involved with countless philanthropic endeavors including the Clinton Global Initiative. As an executive producer with Backrow, Studios, Patel was instrumental in bringing Hollywood talent to Iowa City for their latest film "The Formula." Andre Perry (Board Member) has been dedicated to the cultural growth of Iowa City since he moved to town in 2005. Through all of his endeavors — cc -founder of Mission Creek Festival, talent buyer at the Mill, and now executive director at the Englert Theatre — he has focused his energy and talents on attracting patrons from awide range of demographics to the heart of downtown Iowa City. Andy Stoll (Board Member) is a social entrepreneur and media producer. Stoll is co-founder and creative director of Seed Here Studio, a social -good company dedicated to building a stronger community of entrepreneurs and creatives in the IC/CR region. Stoll's production credits include associate producer for "16 to Life," from writer/director Becky Smith; and production coordinator on the David Mickey Evans helmed baseball movie "The Final Season." Stoll previously co-founded The James Gang, a community -building, social entrepreneurial -incubator. Stoll holds a BA in film production and a BBA in Business Management from the University of Iowa, as well as a Masters Degree in Media Cultures from The City University of Hong Kong. Stoll served as the executive director of the Bijou Theater from 2001-2003. Joshua Yates (Board Member, Bijou Film Board Programming Director) is a human being originally from Fayetteville, NC. His film/video work and photography have been shared internationally in film festivals, photo publications and fine arts exhibitions. He is a graduate student in the Film and Video Production program at the University of Iowa, and currently serves as the Programming Director for the Bijou Film Board. Most importantly, Yates really likes Patsy Cline and White Russians. Marketing Overview Executive Summary FilmScene is a 501c3 non-profit cinema arts group. Its primary activity is the operation of the Scene 1 cinema, a 68-seat theater located on the Pedestrian Mall in Downtown Iowa City. FilmScene is an art house cinema, presenting the best in American independent, documentary and foreign films. In addition to unique programming not found at other area theaters, FilmScene seeks to create community around film, in large part by providing a comfortable cafe space for conversations before and after films. Food and drink offerings include draft beer, wine, desserts, pizza and typical movie theater fare. It is this marriage of compelling programming and a rich movie - going experience that separates FilmScene from other movie theaters. Target Markets FilmScene targets three primary markets. 1) Young adults (25-35) who seek alternative entertainment options and unique "experiences" in downtown Iowa City. 2) Mature professionals (typically 50+) who want access to engaging films, arts opportunities and socializing with the added benefits of enriching the community. 3) College students (18-22) seeking alternative late -night entertainment, fun social experiences and learning opportunities. Competition Marcus Theaters operates 22 screens in the Iowa City/Coralville Metro area. They primarily show large mainstream Hollywood productions, "blockbusters" with large marketing budgets. They focus on big: big movies, big screens, big popcorn and sodas and big name actors and directors. Their prices are high for both tickets and concessions and their presentation quality is good but not excellent. Market Analysis The Iowa City metropolitan area has 152,000 residents serviced by 23 full-time screens. Industry estimates that each screen can be supported by 5,000 people, meaning the metro area has the population to support as many as 7 additional screens. In addition, there are currently zero screens devoted full-time to films that would be classified as independent or art house fare. There is a clear market opportunity for a centrally -located art house cinema. Branding I Top of Mind As a new organization, FilmScene seeks to establish a unique brand as an entertainment hotspot, cultural necessity and catalyst for a creative community. Goal: FilmScene's reputation as a unique venue and experience showing the best in art house programming. Activities: Ongoing advertising on Iowa Public Radio and KRUI. In -venue video and print pieces. Key partnerships showcasing unique programming in partnership with established community leaders. Theatrical New Release Films FilmScene's daily business is the presentation of new release films. It is FilmScene's bread and butter. It is imperative that regular programming is well -publicized and well -attended. Goal: Average 18 attendees per show, and over 17,000 for the year. Activities: Weekly promotion of new release films. Online through regular website updates, weekly emails, and regular social media postings. Inclusion in online and print calendars. In print through regular weekly advertising in Daily Iowan, Press -Citizen, and Little Village. Public promotion through posters downtown and on -campus. Unique Programming Events FilmScene will regularly host unique events, single night screenings, filmmaker visits, community partnerships and more. Many of these will be opportunities for sellouts in addition to fulfilling our mission of engaging community through film. Goal: Average over 30 attendees for special events. Establish FilmScene as the premier host for special film evvents in the corridor area. Activities: Promotion of special events through regular channels (online, print and radio), as well as through targeted emails, targeted poster campaigns, and additional advertising spend. In addition, we seek to identify community partners who are able to help promote these unique events to their interested constituencies. Diverse programming events designed to bring new audiences into FilmScene for the first time. Membership FilmScene's members are frequent patrons, brand ambassadors and support FilmScene's mission through membership fees. Our members are crucial to the ongoing health of our organization, and as such it is critical that we build and maintain a healthy member base. Goal: 500 members by the end of 2014 (Currently at 170) Activities: Promotion of membership benefits at point of sale and in theater promotions. Gathering data on non-member purchases online and at point of sale through email tracking. Periodic membership drives targeting existing patrons who are not members. Focus on a high rate of renewal. Start -Up. Investment and Fundraising Beginning Cash Initial Investment Cinema AV Equipment Cafe Buildout Cafe Concessions Fumiture/decor Register Office computer Agile Implementation Fee Inch GoGo reward fulfillment Subtotal investment Contributed Income Fundraising Events/Founders Kickstarter Campaign Subtotal income Operations Budget Ending Cash Financial Projections Budget Actual End of Start-up $ 49,938 20,000 15,000 5,000 3,200 2,000 4,500 4,000 $ 103,638 73,865 85,136 $ 159,001 $ 55,363 $ 50,406 20,000 6,552 4,000 3,299 2,168 $ 86.425 81,165 85,136 $ 166,301 At the end of the start-up phase, before initial operations begin second week of November, 2013, Film Scene has a budgeted positive cash position of $55,363. Current projection is $72,000 with initial investment less than anticipated ($10K) and overdrive in fundraising ($7K). 0 Three year operating budget - Income Total First Year 2 Year 3 INCOME 12 mos. 13-24 mos 25.36 mos. Contributed Income Annual Giving $ 4,000 $ 4,800 $ 5,760 Foundation Gifts 21500 3,000 3,450 Special Events 10,000 12,000 14,400 U. of Iowa General/Dept 5,000 5,000 5,000 Government (City, County, State, Federal 5,000 7,500 7,500 Subtotal $ 26,500 $ 32,300 $ 36,110 Operational Income Membership $ 13,500 $ 15,525 $ 17,854 Box Office 115,596 138,715 166,458 Concessions 75,582 90,720 108,864 Additional cafe sales (non -moviegoer) 18,250 21,900 26,280 Corporate Sponsors/Underwriting 18,000 21,000 24,000 Rentals 50,000 95,000 Other Revenue 1,200 1,380 1,518 Sales Tax- Contra Admissions 6,936 8,323 9,987 Subtotal $ 235,192 $ 330,917 $ 429,986 Total Income $ 261,692 $ 363,217 $ 465,096 The first year's operating income has conservative admission sales at 18 seats per show, 20 shows per week. Reasonable year two and three growth has been incorporated. Concession sales are assumed at the national average. Late in the first year of operations, an assumption is built into the model for the University of Iowa to rent non-scheduled time, materially improving year two and three income. Three year operating draft operating budget - Expenses and Profit[Loss UPENSE Rent Utilities Payroll Benefits Film Rental Film Shipping Marketing Concessions Supplies Cleaning & Office Supplies Postage & Shipping Telecom m unications Banking & Credit Card Fees Interest Expense - operating line at 5.5% Insurance (Non -Employee) Ticketing/POS/Donor Mgmt. Software Fundraising Bunting Fees Repairs, Maintenance, Supplies Contingency- all other Total Expense ProfIVLoss Total First Year 2 Year 3 12 mos. 13-24 mos. 25-36 mos. $ 47,820 $ 53,100 $ 53,100 10,000 11,000 12,100 159,841 175,825 193,408 15,345 16,879 18,567 57,798 63,578 69,936 5,000 5,499 6,049 12,000 13,200 14,520 28,150 33,786 40,543 700 770 847 400 440 484 2,500 2,750 3,025 8,377 9,215 10,136 1,261 6,927 6,831 10,000 11,000 12,100 10,000 10,500 11,025 1,000 1,050 1,103 1,500 1,575 1,654 5,000 5,250 5,250 3,501 3,676 3,676 $ 380,191 $ 426,020 $ 464,353 $ (118,499)1 $ 62,802 $ 1,744 Year 1 expenses are driven primarily by personnel spending (46% of total). The majority of this spending is variable and can be adjusted based on the performance of admissions. Profit/Loss does not reflect any positive impact a City Ask may contribute. With a $75,000 contribution over a three year period, the financial gap to financial sustainability is substantially reduced. Cash Flow Projection (Year 1 left chart, Years 1-3 right chart) $20,WD S S,Y !V[:l* L6C .a.v a:iC 9.19^ Yimy k,,.. F'x^ .Jli ?. '4'i :.•nG.. CG:i $�2D,DD0) . ,w31 $(ao,000l seAo3l $(wpaD) 73 $(63,13 IwAro as �< .>.�Wmh,tl� iAAI� i NMI noon) Aug sm .M 2M Projections reflect positive cash from the start-up phase and use by operations in the first five months of the business. Future cash flow deficit will be financed through debt provided by MidwestOne Bank and serviced as Film Scene becomes financially sustainable in Year three. r r ®r CITY OF IOWA CITY .02711 '�''%a � -54 MEMORANDUM Date: February 5, 2014 To: Economic Development Committee From: Steve Long, Community Development Coordinator Re: Agenda item # 4, Assistance for relocation and expansion of MetaCommunications Introduction NletaCemmun!cations develops workflow and collaborative productivity solutions through web - based and onsite services that he'p marketing, creative design, packaging and prepress workgroups around the world be more productive. They have over 1,000 business customers including: ACT, Allstate, Crate & Barrel, Carson Pirie Scott, Container Store, Eddie Bauer, Fox Sports, National Geographic, Prairie Meadows, TJX, Talbots, United Nations, U.S. Army and thousands more. MetaCommunications was founded in 1991 and is headquartered in Iowa City with offices in Chicago and St. Petersburg, Russia. They employ 33 people at their Iowa City office and are located at 1210 S. Gilbert Street. Due to the need to hire at least 20 additional positions they are quickly outgrowing their current space. Discussion of Solutions MetaCommunications has a desire to remain In the Iowa City area and they searched for office space throughout the metro area. After looking closely at two locations in Coralville, one of which offered incentives for interior build out, they narrowed the search to Coralville and Iowa City. After discussions with Iowa City staff about potential incentives, they decided that it would be advantageous for the company to be in downtown, Iowa City at the Park@201 building. It is a very competitive industry and having office space downtown overlooking the pedestrian mall and near the University of Iowa would give the company an edge for retaining and attracting employees. They negotiated with the owner of Park@201 to acquire three floors of office space if the City and the owner provide assistance with the cost of finishing the interior space and if the City would assist with providing 33 parking permits for the current employees. It was proposed that the City provide $58,000 towards the $300,000 cost of finishing the interior space and that the City would provide 33 parking permits over a ten year period. If MetaCommunications hires 20 F T E positions over the next three years then the 33 spaces would be provided for five years at 100% of the value ($31,680 a year) and the benefit would decline 20% annually until year ten when it would end. If they do not hire 20 FTE positions over three years then the benefit would begin to decline 20% annually beginning at year four. In addition, MetaCommunications requires a connection to underground fiber services due to the need for high volumes of data transmission. Staff has been working to Provide fiber connections in the downtown, however no such private infrastructure is currently in place. In order to meet the immediate demands of the business, the City is working with South Siope to provide a temporary fiber connection through the City's service at the Iowa City Public Library. The temporary connection will have no detrimental impact on the City's connection and poses no additional security risks. The parameters of this agreement will be worked out between the City and South Slope through a license agreement. It is expected that a permanent connection to a private iber line will be made In the fall of 2014. The extension of private fiber into the downtown will net only benefit this particular' business but will potentially help existing businesses grow and will enhance the City's ability to attract new businesses. February 5, 2014 Page 2 Financial Impact Funds may be used from the Economic Development Opportunity line (10510610-448020) for the first year and for subsequent years. The temporary arrangement with South Slope will not have any financial impact on the City. Recommendation Staff recommends approval of the funding request and forwarding it to City Council for their approval. The addition of at least 53 well paid full-time positions in the heart of downtown Iowa City on three floors of the newest building on the pedestrian mall will make a positive impact on the entire area. With the sale of the three floors of office space, every available unit at the Park@201 building has now been sold. i-2111CITY OF IOWA CITY '40 '�� MEMORANDUM To: City Council Economic Development Committee From: Tracy Hightshoe, Associate Planner Date: February 5, 2014 Re: Agenda Item #5 Consider request for CDBG Economic Development loan to Butter Please see the following Initial Review of a request for an Economic Development loan for Butter, a new restaurant opening in Iowa City. We will review this request with Committee Members at the February 10 meeting. The applicant will also attend the meeting. INITIAL REVIEW OF BITTER WORKING CAPITAL Business Proposed: Taki Mullins, President of Roadies720 LLC, d/b/a Butter is requesting funds to open a new breakfast/lunch restaurant at 341 S. Linn St. The restaurant will feature traditional and gourmet menu options. The space is newly built -out. The building was built in 2009. It is in a downtown retail location at the corner of Linn and Court, near the University of Iowa, post office, and court house. The owner requests $25,000 for working capital expenses. Budget & Private Financial Contribution Owner has purchased $18,400 in equipment and has $15,000 in cash to inject into the business. The applicant has a Financing Commitment from MidWestOne for $50,000 that requires documentation of $40,000 in start-up costs secured by $15,000 cash and $25,000 through a CDBG loan. MiclWestOne will place a UCC lien on the equipment, fixtures and leasehold improvements (discounted value of $62,000) as well as a mortgage on owner's rental property. The letter of intent to lease space includes a $25,000 allowance from the landlord to upgrade electrical, add a second bathroom and add the kitchen hood. The lease gradually increases over three years. The term of the lease is five years and also provides 90 days free to allow time to remodel the space. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure and is located in a CB-5 zone (central business support). The business will be in Riverfront Crossing and will locate in a space that has not been occupied. Providing direct financial assistance to a for -profit business is a CITY STEPS priority. Quality of Jobs The business will create new employment for approximately 18 persons, primarily all low -moderate income persons. Of the positions created, there will be three full time positions (manager and full time cooks). No fringe benefits are paid at this time. Economic Impact The proposed CDBG funds will provide a small business with access to low interest working capital in Riverfront Crossings, Environmental/Community Involvement Business plans to use biodegradable products and environmentally friendly small -wares. Staff Recommendation: The owner will contribute approximately $33,000 (cash and prior equipment purchased) to this business. He has about 10 years of experience in the service industry, of which the last seven have been as a manager. There was a concern about limited cash flow when the owner completed the cashh flow analysis with the Small Business Development Center (SBDC). Upon confirming with the lender, there was a miscommunication about the amount of equipment already purchased by the owner. Due to purchased equipment, there will be approximately $10,000 more cash on hand to alleviate the initial cash flow concerns. February 2014 The lender and SBDC felt the sales projections were reasonable and the applicant has a good payment history. Staff recommends a $25,000 loan with a maximum term of seven years at 0% interest for working capital only. The loan will be partially secured by a mortgage on the owner's rental property and a personal guarantee. Staff recommends as a condition of the award the business is evaluated by the SBDC. Based on, the evaluation, the owner will receive technical assistance through the SBDC for any identified concern. February 2014 Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Panayiotis Mullins Home Address: 709 N. Pine St., Mt. Prospect, IL 60056 Name of Applicant Business: Butter Full Street Address of Business: 341 S. Linn St., Iowa City, IA 52240 Phone Number & Email Address: (847)561-5036, takiim(ftmail.com DUNS Number (If awarded funds, applicant must obtain a DUNS number): ype of Business: Breakfast/ Lunch Restaurant Date Business Established: N/A Start Up Business Commercial Lender's Name, Address and Contact Person's Phone and Email Address: dam McLaughlin MidWestOne Bank 65 Highway 965 NE, Suite A North Liberty, IA 52317 Ph: (319) 356-5988 mclau hlin midwestone.com Current residency status (please check one): U.S. Citizen or Permanent Resident Alien 0 Other 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 716/2012 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: I plan to open/ create a start-up breakfast/ lunch restaurant that will promote a healthy life- style with your traditional and gourmet breakfast/ lunch choices. With the financial assistance from the city, I will be able to provide a warm, welcoming atmosphere that fits in with Iowa City's vision while continuing to develop the downtown area. 1.2. Provide a brief history of your company: There is no current history of Butter at this time. My expectation is to have long-term success with the business. 1.3. Describe the organizational structure of the business: Taki Mullins, President of Roadies720, LLC has countless hours of experience in the breakfast/ lunch restaurant industry. He has extensive kitchen training in a small, family -owned breakfast restaurant. He has worked training staff such as servers, hosts, bus boys and management teams. Taki is knowledgeable in a variety of POS computer systems, knows how to handle and control large amounts of cash and food inventory, direct staff meetings and establish monthly budgets. Butter will be looking to hire a general manager, kitchen staff, servers, bus boys, dishwashers, host/ hostesses, and a juice girl with Taki Mullins overseeing all operations. Taki will be sure to train management to understand that customer service is our number one goal. He will personally spend time working with the kitchen manager to ensure all plate presentation and food quality is held to the Butter standard. Servers will be trained by the management team to make sure service and teamwork are our utmost priority. 1.4. Management (Proprietor, partners, must be shown) officers, directors, all holders of outstanding stock, 100% of ownership Name & Position/Title Complete Address Owned Taki Mullins 709 N. Pine St. t. Prospect, IL 60056 100% Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. Revised 7/6/2012 Panayiotis J. Mullins 709 N. Pine St. Mount Prospect, IL 60056 takijmAgmail.com Objective To impact the Iowa City community by proving a memorable breakfast/ lunch experience that offers quality food and a lasting impression. Education Northern Illinois University, DeKalb, IL General Education Triton College, Chicago, IL Associates Applied Science 2-Year NJCAA College Athlete Prospect High School, Mount Prospect, IL Relevant Experience Egg Harbor Cafe, Arlington Heights, IL Manager Jan. 2003 to Jan. 2004 Aug. 1999 to May 2001 Aug. 1995 to June 1999 June 2007 to Present -Set up monthly budget, compile weekly expenses, and code and enter incoming bills -Prepare and provide goals for projected daily sales -Monitor daily inventory and keep a low food cost percentage -Control daily operations of staff while ensuring a positive experience of each customer -Attend monthly Chamber of Commerce meetings and after hour events Champps Americana, Schaumburg, IL Server, Bartender March 2005 to April 2007 -Successfully calculate inventory of high -end bar, service bar, and keg room -Accurately pour and make quality specialty drinks for bar patrons and servers -Reached goal of obtaining 100% secret shopper server report monthly Bakers Square, Mount Prospect, IL Server March 2004 to Sept. 2004 -Follow steps of service while providing excellent customer service -Properly learned how to store, handle, cut and bake world-famous pies. -Handled cash, credit card payments, and set up catering orders. Work Experience Napelton Lincoln Mercury, Park Ridge, IL April 2000 to Oct. 2002 Apprentice Technician -Inspected new and used vehicles and replaced brakes on several vehicles daily -Involved in replacing recalled tires for several hundred cars in Firestone recall -Certified in brakes, tires, suspension and diagnostics Personal Accomplishments -Proud member and brother of the most powerful fraternity in the world, Ancient Free and Accepted Masons since 2005. -Created and developed a unique basketball organization compiling record breaking seasons and multiple championships since 2003. Revised 7/6/2012 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. My goal is to create new jobs/ opportunities in the community. Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Activity Loan Requested (Enter gross dollar amount rounded to the nearest hundreds) Land acquisition 0 New Construction/Expansion Repair $50,OOD Acquisition and/or Repair of Machinery and Equipment $12,000 Inventory Purchase $6,000 Working Capital (including accounts payable) 5,000 Acquisition of Existing Business so II Other (Supplies, Small wares) $2,000 Total Loan Requested (All Uses): $75,000 2.2. Terms of Proposed Financing (Sources) Proposed Financing Amount Monthly Payment Type() Rate Term Financial Institution: MidWestOne Bank $50,000 $986.53 Direct 6.85% 5 yr Other Iowa City CDBG Economic Dev. Fund $26,000 298 Direct O% yr TOTAL SOURCES: $75,000 1'IFor example: forgivable loan, direct loan, or grant. NOTE: Total Loan Requested - Uses (2.1) and Total Sources (2.2) should be equal. Revised 7/6/2012 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. My personal financial institution advised me that assistance is needed in order to lower our initial operating costs and for continued sustainability. With MidwestOne approving $50,000, they recommended the CDBG funds to complement their financial assistance. With the combined support and backing from both institutions together with the exposure from the City, I will be able to complete this project and it will be beneficial for all involved. 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. (This .amount should not be included in questions 2.1 and 2.2) I will provide Cash On Hand for operating costs in the amount of $15,000. 1 have also purchased the following assets for the business: • Victory Double -Decker Gas Convection Oven $5500 • Three -Bay Commercial Stainless Steel Steam Table $2000 • Randell Stainless Steel Server/Bus Station with Ice Bin and Water Line $700 • Under -counter 2-drawer Server Refrigerator $1200 • 1 Oft Refrigerated 6-drawer equipment base $3000 • Blendtec Blender $400 • Single door Victory Reach -In Freezer $1400 • Double door Victory Reach -In Refrigerator $2100 • 2- Stainless Steel NSF Shelving Racks on Casters $250 • 2 Shelf Stainless Steel Prep Table with Backsplash $500 • Little Giant Ladder $175 • Beverage Dispenser$25 • Industrial Steel Dolly $115 • Framed Artwork $400 • NSF Steel Commercial 8in and 10in Saut6 Pans $150 • Handicap Accessible Table and Conference Table $200 • Condiment/ Display Table on Casters $300 Total Owner Contribution: $33,416 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: MidWestOne Bank: Financial backing for buildout construction costs Build to Suite, Inc.: Pat Barten, General Contractor Skogman Realty: Mark Lynch, Realtor Bradley & Riley PC: Jeremy B.P. Hagan, Attorney 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. Corporate Guaranty UCC Financing Statement Irrevocable Letter of Credit Personal Guarantee Surety Bonds Mortgage on Real Estate Escrow Account Other: Personal Guarantee Other: Real Estate Revised 7/6/2012 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. Please refer to Adam McLaughlin at MidWestOne Bank, 2.7 If the City did not provide financial assistance, could the project proceed? Per my financial commitment letter with MidwestOne Bank, without this financial assistance they will not provide the needed financing. 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 if it fails 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. 1.1 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. NIA, This is a start-up business. 1.2 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) # of Jobs Created # of Jobs Retained Type of Job No. Hours Per Week Hourly Rate of Pay Fringe Benefits' 1 0 Officials & Managers 40 12 0 2 Full Time Cooks 40 10.00 0 2 Part Time Cooks 20 8.25 0 2 Full Time Dish/ Bus 40 7.25 0 2 Part Time Dish/ Bus 20 7.25 0 3 Hosts 20 7.25 0 6 Servers 25 4.35 0 *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 716/2012 1.3 What is the estimated annual payroll for the new employees resulting from this project? Approximately $110,000 annual payroll for this project. 1 A 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: N/A Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? Hamburg Inn, Bluebird Cafe, Wedge downtown, Fair Grounds, Trumpet Blossom Cafe. 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. I believe in the most efficient waste management possible. Butter will prove itself in the community with our biodegradable products and environmentally friendly small -wares. Section 5: Community Involvement, Compliance with Law 1.1 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. Butter will be active in the Chamber of Commerce supporting local businesses. Butter will also donate to the local churches and support the growth of the development of the Iowa City Area. 1.2 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. 1.3 Has the company or any officer of your company been involved in bankruptcy or insolvency proceedings during the past 7 years from the date of this application? If so, provide the details. M 1.4 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. M Revised 7/5/2012 Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. [ ] Business plan (if start-up business) [ ] 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 turn 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) Revised 7/6/2012 Please provide the asocial security numbers for all the persons listed under Management (4uee0011#1A) { ] If an exlsling company, copy of the company's quarterly Iowa "Employer's ContributIon and Payroll Reporr, for the most recent quarter. E ] Construction loans only: Cost estimates for construction and a statemen of the source of any additional funds E I Include a [let of any machinery or equipment or other non -real estate saw$ to be Purchased with the financial assistance and the cost of each item as quoted by the Oder. Include the sellers name and address. Upon review of a submitted application, the City reserves tape right to sequoW eddidonal information In orderto assfst the City with its evelue#on of an appfkat(On. Release of information and Certification NOMO 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, conted the eampany's financial institution, and perform other related activiries necessary for reasonable evaluation of this proposal,) understand that ail information submitted to the City relating to this application is $ utxx to the Open Records t aw (t99d Iowa Code, Chapter 22} and that wnfidentiality may not be guaranteed. I hereby certify that all repreaeniatlorts, warranties or statemerds made or furnished to the City in connection with lhia application are Prue and carted in aH maEenal respects. 1 understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cauee to be made, directly or indirectly, a false statement in writing for the purpose of procunng economic development ass(stance from a state agency or po4tical Subdivision. If apple rrt re a propria r or general partner, sign Mow. By: - If appltcant is a Corporation, sign below: Corporate Name and Sea( Date By: Signature of Presider Attested by: Signature of Corporate Secretap Revised 7412012 Date: fz" + ~ / 7 Business Plan Butter I. Mission Statement Our goal at Butter is to provide outstanding customer service and to have the highest quality, best tasting food in a comforting setting. II. Executive Summary Butter will separate itself by bringing a family friendly restaurant that caters to kids, families, college students and senior citizens. We will stay active in the community by supporting local charities. Our restaurant will benefit local businesses because we will bring thousands of customers to our business monthly. We will stay competitive with other breakfast lunch chains by offering traditional down home classics, new healthy selections, fresh squeezed orange juice, homemade taters and a kid -friendly menu. Taki Mullins is the president and CEO of Butter. He is experienced with years of training and is knowledgeable in all aspects of the restaurant business. His greatest strength is customer service. Taki will go above and beyond to make sure that every customer is treated with the dignity, passion, love and respect they deserve. He will lead by example and create a work environment that is happy, friendly and efficient. III. The Business Strengths and Weaknesses Butter's biggest strengths will be the memorable customer service that each customer will come to experience. We will provide the highest quality ingredients from well-known food purveyors. We will have selections to cater to a wide -range customer base from skillets and omelettes to a variety of soups and sandwiches. We will be the only breakfast restaurant to have daily specials, homemade taters and fresh squeezed juice from a commercial juice maker. We will be very kid friendly by having a special menu for kids and contests and birthday activities. Our biggest weakness is being new to the community which will not be our greatest weakness for very long. We will menu blitz, advertise and become active in the local Chamber of Commerce and do whatever it takes to make people understand the impact Butter will have. Taki poses all the strengths the successful business people Business Plan Butter have. His experience, desire, work ethic and love are second to none. Butter will work and we are confident it will be the best! Legal Structure Butter will be owned and operated by Roadies720, LLC. Taki Mullins will oversee all business operations. Business Description Butter will serve its creative menu in a commercial leased space in Downtown Iowa City. This location is well traveled by thousands of college students, visitors, families and University of Iowa administrative staff. We will be open for business from 6:30am to 3:30pm. We will provide an atmosphere where you can take out, sit down and visit, or eat quickly and go. Most of our food will be prepared fresh on site which will separate us from our competition. Our complete menu will be available for carry -out and on foot delivery within close proximity. We will also feature a catering menu to accommodate larger groups which will be available upon request. Our goal is to go above and beyond all expectations. We will create a fun and exciting work environment and never remain idle. I will continuously challenge the staff to learn more, motivate them to strive for excellence and to make those challenges rewarding. I will strive for Butter to be the best breakfast restaurant with the entire staff from the management team down to the bus boys being excited about their job, wanting to go to work everyday and to know they can always move up in the company and be rewarded. I want us growing and always looking for new locations with hiring and growing from within. I want us to have the best food, be active in the community, work with local charities, sponsor local activities and overall be the best at what we do. The best customer service and the best food with a down home feel all in one place. Downtown Iowa City, Iowa is thriving for a concept that Butter will provide. We will set the standard for excellent service and quality food. Employee development and Management skills will top the best Iowa has to offer and will surpass any standard in the area. The arrival of Butter in Downtown Iowa City, Iowa will bring thousands of customers to our restaurant monthly and the community whom has supported us from the start. Product Description Butter will provide your traditional breakfast favorites with the freshest ingredients and new creative food trends. We will have homemade soups, crisp salads and healthy Business Plan Butter selections to cater to everyone. Butter will have quality coffee and fresh squeezed orange juice to be purchased by the glass or gallon. All of our food will be purchased by a notable food purveyor with Taki Mullins and kitchen staff preparing creative breakfast and lunch favorites. We will make your traditional favorites better and have many new ideas to put different flavors and ingredients together. Our fresh ingredients and creative menu will separate us from the competition. Butter will offer daily food specials. The staff will meet in the morning and put their ideas together to come up with new delicious creations. We will change our menu with the season to meet customer requests and have the newest seasonal items added. We will also ensure the entire staff samples each item on the menu to improve their knowledge of the products and are confident when answering customer questions. We will offer dine in, take-out and catering. We will accommodate to all ages, focusing on families and students and have a very family oriented business. Location Our location is prime. Butter will be located in the well -traveled Downtown Iowa City at 341 South Linn St. We are within walking distance of the University of Iowa, US Post Office and Court House. It is visited by thousands of college students, working men and women, families and administrative staff. It is located across the way from the well-known and awarded Hotel Vetro, Sheraton Hotel, and ever famous Iowa City Ped Mall. We are within a 2.1 mile radius of Iowa City elementary schools, junior highs, and high schools. Management and Personnel Taki Mullins, President of Roadies720, LLC has countless hours of experience in the breakfast/ lunch restaurant industry. He has extensive kitchen training in a small, family -owned breakfast restaurant. He has worked training staff such as servers, hosts, bus boys and management teams. Taki is knowledgeable in a variety of POS computer systems, knows how to handle and control large amounts of cash and food inventory, direct staff meetings and establish monthly budgets. Butter will be looking to hire a general manager, kitchen staff, servers, bus boys, dishwashers, host/ hostesses, and a juice girl with Taki Mullins overseeing all operations. Taki will be sure to train management to understand that customer service is our number one goal. He will personally spend time working with the kitchen manager to ensure all plate presentation and food quality is held to the Butter standard. Business Plan Butter Servers will be trained by the management team to make sure service and teamwork are our utmost priority. Insurance Insurance for the building will be negotiated in the lease and follow all government requirements. Competition Taki Mullins has thoroughly thought out the competition in the surrounding area where Butter will be created. Our biggest competitors will include Trumpet Blossom Cafe, Fairgrounds, Bluebird Cafe and Hamburg Inn. Butter will not feel the effects of these businesses due to the fact that we are bringing an entirely new breakfast/ lunch concept to the area. These chains do not offer the same management style, menu and service excellence that Butter will achieve on a daily basis. Our customers will feel a new modern/ welcoming atmosphere upon walking into Butter versus our competitors. They will experience a clean and open layout with a country inspired theme including natural lighting with store -front windows, 22-ft ceilings and newly built facilities. Our competitors hours vary significantly from the theme we will provide. Butter will be open from 6:30am to 3:30pm specializing in breakfast and lunch while all of the listed competitors are open for dinner. This again separates us by focusing our attention in mastering our gourmet breakfast/ lunch experience. We will open as early as 6:30am to accommodate customers looking to get in before work or after a late night shift. By not providing the option of alcohol, we will strive to provide a family -oriented atmosphere, an edge that our competition lacks. Our average price per person will be $10 which is highly competitive with our local competitors. Business Risks We would be unrealistic to assume that Butter will not face any business risks or possible setbacks. One major risk we could face is the downturn of the economy which would result in customers wanting to stay home to save money. As the President of the business, I feel that we will have full support from the local community and businesses to ensure that this will not be a major factor. Strategy Our main marketing strategy begins with delivering anything but your typical restaurant menu choices. We will combine the finest and freshest ingredients with the Business Plan Butter most creative minds to come up with an exclusive variety of choices for our customer base. All food will be prepared in a timely manner with pricing in place to accommodate to our guests' needs. All guests will have the choice of dining in with a memorable experience or taking out and enjoying at home with friends and family. We are happy to cater to large parties or groups for a convenient Butter experience. We plan to advertise to the community via popular social media: Facebook, Twitter, Instagram and Linkedln. Together with our own website and social media, Butter will update its customers with local events, daily food specials, birthday promotions, and many more. Butter will primarily cater to students, professionals, families, senior citizens, and University staff. We project our customers to mainly travel by foot, car, or bus. Our operating hours will target daytime students/ staff/ employees in the area. Due to our downtown location, we predict a high volume of foot traffic which will offset the limited amount of street parking. Our target market strongly corresponds with the demographics within 1 mile of our location: • Total Daytime Population: 38,800 • Total Employees: 27,000 • Total Population Median Age: 23 Finally, Butter will be born and grow into the new breakfast and lunch concept that Downtown Iowa City, Iowa is striving for. Taki Mullins is ready to put together a team that is encouraged and goal -oriented to met any challenges and become the most succeddful restaurant in Downtown Iowa City and surrounding areas. It will be a dream come true! IV. Financial Data Through our POS system, PixelPoint, we will be able to track our daily sales, our hourly labor, taxes, food inventory, and breakfast versus lunch breakdown. This electronic information will monitor our daily financial operations to help us run a more efficient business. We will gladly accept all major credit cards and cash payments to convenience our customers. Management will do a daily sales breakdown tracking and recording numbers to accurately document continued growth and areas of improvement. Sources & Uses of Funds Statement Sources of Funds: (where you will get the money to fund your project) Equity (money or assets owners/Investors will provide) Cash Injection $15,000 Landlord $25,000 Owned Equip $10,000 Total Equity Contributlon $5D,000 40% Debt (borrowed money) New Loans $75,000 Total Debt Contribution $75,000 60% .. Total Snurm of Funds $125,ODO. Uses of Funds: (what you'l) use the above funds for) - Fixed Assets; Renovations $75,000 Equipment & Machinery $23,000 Fumiture & Fodures $17,000 Organizational Expense $2,DD0 Total Long Tenn Assets $117,ODD Inventory $5,000 Prepaid Expenses $50D Working Capital (Cash) $2,500 Total Uses of Funds $125,000 Thla kmplW vare weeletl bYV�e BBDC BD ebtlxlleenaetl nNllee bylne oraenhetlon psmd above. (e)BBDCSD. AvWMI9&IBBOCTaxe.4ft7J2D1ii 12;111 I'M RmbWlAYw Rmu Ptejwom 4 NWffmd of PmWUmg Rmwmee 1 t andy tu PglIh mwlw.w.�l.aa�. nn,rar...e.u.aa� rm.e... wunmom...em,..leom IMM14 tistiaM --- � rnr �rnrrerelgr m IOWa O rF eaelneee DevelOpmart Center art s preps FINANCiAI. STATEMENT: DepredaNOn 8 Amadlzati0n Sol lute financial projections from,information 0ommunicafad by the Client Date Prepared 1117t2014 We are not licensed by thil slats of lowato praclica Public Accounting 7-Year Property 10-year pmpedy Total Annual Deprecladon and Amotizaeon Expense (Year 1) $17,000 $29,000 7 ( a& 10 SA. [=r �r lhbb yse aaobC by tle eeoG BD aHbtlrmawkrunN'ciem miav fsletl show J,)S CSM Aval11hb1taer CTwWonm 111712014 12AS PM LOAN INFORMATION SOURCE OF LOAN: MidwestOne NEW OR EXISTING LOAN: new SBA 7(a) GUARANTY? (YeslNo) no BEGINNING MONTH: 1 MONTHS INTEREST ONLY: 0 AMOUNT OF FINANCING NEEDEC $50,000 SBA LOAN GUARANTY FEE: $0 TOTAL FINANCING $50,000 ANNUAL INTEREST RATE: 0.05% TERM (IN YEARS): ED MONTHLY PAYMENT: $886m LOAN 2 SOURCE OF LOAN: City of Iowa City NEW OR EXISTING LOAN: new SBA 7(s) GUARANTY? (YeslNo) n0 BEGINNING MONTH: - 1 . MONTHS INTEREST ONLY: 0 AMOUNT OF FINANCING NEEDED: - $25,000 SBA LOAN GUARANTY FEE: .. - $0 TOTAL FINANCING: $25,000 ANNUAL INTEREST RATE: TERM (IN YEARS): MONTHLY PAYMENT: 0.00% 7.0 $297.62 7nle+empl.bwe.creel.d by im SBDC So and Is Ycen.ee fora.. by the orgmM.eWn WO e. (o)SOD08D. Av.IWkatSBDCT.d..WM 1/17/2014 12:18 PM Loan, a w9qr 1 S.m0 ma $701 m9.� 3 040.20 � van a �� 4 S47Aa 7273 f713 s0,'M 6 S47.171 an 9717 SIA454 9 S46AS4 3286 s741 i4R733 ] SQUIS 4201 SM S9Rm7 BSM SMS44Rre ® sm $7041 s4Re44 yo i43A44 M49 SM S4$ea 1l S42Aa $244 $742 ;4�9'ii 12 4e is i41,817 Ig S9SA12 u S41ka7 9w 977M 16 i3R812 1227 47m $31SM to Main am $704 Sara 17 faun 1214 SIM SM.749 18 SK748 s66,749 19 seR]49 8210 S777 m10 s777 21 Sa.101 MIM �,491 22 8206 SM SM i1s29fa s]m S834,405 ows B 58R616 Elm S7BG 332,02D 3/ zsraze, $17B88 631417 28 $31.217 um 27 49R409 $174 4813 28 maw s189 file 29 s2R778 $104 $02 SU79a m 627,088 $190 sw m7,120 31 $27,120 $165 Ses2 *aim 32 s2R2D8 $150 San SUSA81 93 UM,181 S146 4841 s24,6m 94 mom 5141 m46 ma,774 38 S2R774 0138 sa61 Muss 928 1131 R22 37 WOM a1 I= Se 621,202 $121 sea s2143a as s2o,e42 Stye fma 40 s19A71 it'll 14175 slope Al siolm 5106 sm S17,716 42 117,716 S101 Safi s18.830 48 eie,e a ma Sao $18,94D 44 31R9W m1 sae 316,044 sat s14.143 48 $14,143 $01 "an is.= 47 51=0 FM sail $12,ffi 4e sme 211AII 49 511,411 toSIMI SiDA89 an SIR409 $m 027 Walk! bi wetz sw 1932 iRal 52 ®1 Sw 07M a WAS $44 M3 s043 G4 m,761 $39 s39 S94e s6Am SUN Go $41" as $ so 068 13,649 sham ms am m;8°°9m $11 s1,� sag n� 2a "76 sea Go Allet wa s m ra m so $0 m m a m m $0 m 84 10 m 70 so as so so m m a So 40 so m B7 m m so m so SO so $o w so so ?a so Sol so 71 so w 72 so, soso m Loan i 38ra4t Pdndpd 0 1 r25oo0 s SM $24.702 a $2417m m! 1210 MAUS 3 s24Aa mI SM 924,107 4 f21,107 40 $298 s9,e+a b s23.610 - 40 ma s23,512 82SA12 an sea s2R214 ] 423,214 id 3298. b29,917 8$Z2,917 Sq MB m2.61G 0 372,819 so s2110 - $22M 1n s22,321 so 9298 11 02.024 so S:H 2e 12 s 19 14 s2y,� as sa $20.88sls If Ssoms $a ma $=Am 1S VGA Sa SUM Cause 17 $20" so sm sIGA is SISAC so SM slafis 19 s19" so s238 S19,30 an 41930 sa WON $19.0" 21 419.G48 sa ma $19.70 22 i147m sa saes MAW 23 vsss2 so 9M s1B.1be 24 Ilium a y7 25 a7 S2B6 2317sm 28 $1im0 so $29111 SUM 27 577,202 mI SHE sispm a sIA964 sal ma Siam 29 s1Rea7 SOI sw $18" 90 S149e9 s SM S9Ra71 V SISM SR ON $16,774 32 815.774 SR SUNG s1R478 IS sisA7e so ma $1R170 34 318,09 am $14.511 a 514,981 s S29e $14,088 a 514.603 0 am zl� $13jft so SM Sim s/aAm to sm s1aim 40 313.M so $298 s13.0a 41 MAN m s269 SUM 42 S121708 0 i208 s12.500 44 s12,202 s8 7298 i 1.we 46 51y,0a Sa ma Sli m 49 SlimT so ma 611.310 47 011,810 So 321118 s11,012 0 sa 10 u $10,714 $o .417 a Sy9A17 so sae $10,119 at $101119 40 6289 fie SIM so $ea SWAN a 69424 so am m,U28 64 ss.ae so sm $3,928 m Same So SM sRen Of sRa1 m SM e7 3R333 So sm saAN fie $%ON so am 37,730 fie s],Ia so SM 27 no so 143 01 .w3 r ■ 62 i0,846 so am "MO in SBA48 So Sea SR2m 84 a.250 so ma sum as so � a $6M r299 S5= 67 015,367 Sa $208 01.01"! as Kona m B0 782 in SON $44.454 so � s4,187 n w mea 73Aa 7z OAN ,144m�pYr�...ueno44rr�mmru®.ea 1ew41r n9ns19m+c seao6m..w asaoc1m9.4om 111=014 13:18 PM �.. .. _� . 44 h, Net Profd before Taxes Projec2ed Year 1 Projected Year 2 $21,079 $55,252 • Depreciation $9,729 $9 729 • Amortization +Interest $133 $133 $3,156 $2,542 - Increase in Permanent Working Capital $0 $0 - New Capital Expenditures (Net at New Loensilrgedee) $0 $0 COW Cash Flaw Available for DIS $34,096 $67,656 fTotei Debt Service $15,410 $15,410 = Debt Coverage Ratio 2.21 4.39 :rnraawr ewaaaadadpy_gia'e6ncEo vdlsFwneeamraw Wtl�argotthalfm kbtletowi 04 SMOG au:-awmw at taw-Aa 1117/2M4 12.18PM BREAK-EVEN ANALYSIS -YEAR 1 The Unlvereity of loam $mallBusine lyeevalepmerdt'Csntar has prepared these GROSS SALES $297.15W fltmrciai proJeetlormTrom inMnmftn cpmmmrksted by the Ctlent. . We ate not licensed by the stars of Im" to prattles Public Accounting COST OF GOODS $74,620 and can'Ifterefons ghrelno opinion or assurance on the statements.: - GROSS MARGIN 23 p CMS FIXED EXPENSES VARIABLE EXPENSES Owner's Salary $22,500 Owner Payroll Terms $3,443 Varintrk Employee Wages $71 750 J - Vadable Payroll Tams $7,426 Waiters Comp SO $1A35 Maintenance $1.675 AdlPromotion $1,800 And & Legal 57,350 Rent $19,800 Telephone ne $1,800 ftles Insurance $4"0 $4.200 Equipment Lee as $,400 Miscellaneous 1 $1,0 Peat Control $�r45p Payroll Service $1,125 Prepaid Expense $p Credit Card Fees $6,740 Supplies $14,350 Comps $5,740 Depreciation $9.729 Amortization $133 Principal Pmt interest $12,254 Break Evhn Paint in Cash Flow (Year 2)r $2WA80 $3,156 Ird-uns of Credit $p . TOTALS I VOLLIME FIT RATIO BREAK-EVEN POINT % OF PROJECTED SALES AFTER BREAK-EVEN SALES SALES %GROSS VaUME PRAT BASED ON EXPENSES .0 143,aM($31,891) 86.7% $191,260 ($14,234) BASED ON CASH FLOW ® 82.38% 75.0% 125.01A $215, 5358,750 ($5,406)333 $47,563 160.0% $430,500 $74,048 200.0% 5574,000 27 018 lNafenpimv,ea aeai.agn. ssoC at �tlbrllaabatlfaruwgria orObrm4mtlemU above, io)seotm. Avexxx M9ebCTbdaam 1M712014 12:4813M Client Name: FINANCIAL STATEMENT: Oak Prepared Buffer Pro Forma Balance Shasta 1/17=4 The Uni"Mily Of Imeet small Buemeas Oere r:amw by prepared time 6nanab,f Fro CftMI from lnb,rma8on aommanfoab,d by the CMML We are not acenasd bythe stab, of Iowa to FaeBoe PUbllC Ao=nrrmg and oan.theralbre giro no opinfomor assormree on the abfiemmda. Tswt h 4 Aor-14 MaY614 Jun- 7 5 a Cash Mwmwy Propel" Crment Assets $2,500 $6,000 $500 $8,000 02" $5,000 $600 $5,215 CROW $5,000 $600 $2,432 ($5,852) $5,000 5500 ($352) (33.546) KOW wall $1,068 ($860) $6.000 $500 $4.631 $2.M $5.000 $500 $7,754 $0.037 $5,000 $WO $11,537 $10,190 $6.000 $500 $15,690 $10.813 $4000 $500 $10,113 $14.027 $6,000 woo $19.527 $10,834 $5,000 $gp0 $21,034 $15.017 $a,000 SSW $21,417 Net Fbmd Assets Net linlangibles $115,000 $2,000 $114,189 $i 089 S1t9,379 .$1 978 5112,588 $1,987 5711,767 $1 998 $110,048 $4 044 $110,138 $1 938 $1W,325 i 922 $108.514 $1 911 $107,704 $1900 $106,893 $1 859 $loom $1.878 $105971 Si IST TOTAL ASSETS 8125000 8121394 $1177811 $114182 $115.867 jM 17522 ${t9823. St22,7g4 $125115 $125716 $128309 $129794 $128665 Taxes Payable CPLTO-Lwm 1 CPLTd4.0an2 Cunem LiablllaeB SO $8,083 $3.571 $12,264 (5062) $8,732 43,571 $11,052 ($1,30M $8,732 $3,571 $14,051 ($1,952) SEA32 $3,571 $10.451 ($1Iwo $8,882 SUM $11.125 00"1 $8.933 $%671 ' $11,894 $0 38,984 $3,571 $12,85e Sege $9,035 $3.571 813,603 Moss $9,03! $3,571 $14,744 $0 $9039 $3.571 $12,710 $907 $91191 $3,tiL7 $13,670 57,53a $9.244 $3,671 $14,353 $0 $0,298 $8,571 $12,888 Long -Term Loan 1 Long -Term Loan $41,317 $21A29 S40,a67 $2i1S1 $39.812 $20,633 $39,053 $20,538 $56,269 $20 88 sm $19 $38,749 - 19 3 $35,972 $10346 $ffi,191 $19 $34.405 $18.760 $33,515 $18462 $32A20 $18,155 M021 $t7867 Total Llatgll0es . $78 0. S73 S49 $71 096 470,039 $09 063 $69,355 01513,947 $88,8M $88,983 $85.60 $65737 $e5326 'm2 740 Common Slock Retained Eam s $50.000 $0 $50,000 1, $801000 9 SM000 .. $501000 $60,000- 1e $50,000 $875 $50.000 $3854 $50,00D $7.133 $MOOD 551 R50,000 $12,572 $50,000 144" $50.oa0 $15509 TOW Owmera eglay 050.000 $48 045 $46,092 $44.143 $46,015 $46107' $50,075 S53 $57133 45B 1 562,572 $64 $85 TOT LIA $ NET WORTH $125,000 $121,304 " $117.788 3114,182 $115,807 $117,522 $119,823 MS22,784 $128.115 $125,718 Mlle 09 $129,794 $128,555 ..CHECK $0 $D $0 $0 SO $0 $0 $0 SO SO SO $0 ThahataeteaseaemEleamaw0e0sd rlem.wrmwsyanwsmwseahwaDm.. a$aBOCa0. AwreNetl9a0eraehaae U17)2054 12:18 PM CSent Nams, FINBusmen STATEMENT. Butter Pro Forms Balance Sheep Thounlvendty flnendal pmjea9one terra Isom lotomloUan communicated IenarrtC by 00 hasp Client tbeaa Uete md Date Prepared pa 1H712014 We are not Mosmand by the I to of toara to press= PubSe Acamn6ng and tan sursotoso give no opinion or assurance as the etatemetlffi. . . Year 1 Mar- May -is un-16 Jul-1 A -15, -16 15 130o-13 Jan-16 Feb-1 Cash $18,548 $21,918 $23,602 $27.710 $31,448 $32,882 $37,877 $43,a30 $451033. $50,249 $54.355 $54,350 Inventory $5,000 $5,000 $5AM $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $S,OM' $6,000 Pr®paws $500 $5M $500 $500 $5M $500 $5W swo $500 $500 $6M $500 Current Assets $24.048 $27,4118 $29,102 $33,210 $38,948 $38,162 $43877 $0,330 $50.533 $55,749 $59,655, $59,sw Netpboad Assets $104,461 $103,850 $102,8M $102,029 $101,218 $100,407 $99,698 $96,788 $97,975 $97.164 $98,364i $95,50 Natlnten lbles $1856 $1,844 $1833 $1,822 41,811 $1.800 $1789 $1778 81767 $1756 $1744 $1.733 TOTAL ME-rS $130.364 $132.912 $133776 $137081 $13GN7 $140,389 $144762 $149 $160275 $164,688 $157,954 $157128 Taxes Payable $714 $1,814 $0 $1,087 $2,082 $0 $1,367. $2,910 $0 $1,370 $2,485 CPLTD-Coen 1 $9,349 PAN $9,466 $9,510 $GABS $9,819 $9;674 $9,729 $9,T85 $9,841 $9,897 MGM CPLT0.1nan2 $3,571 $3,571 $3,571 W71 $3,571 $3,571 $3,571 $3,571 03,571 $3,571 $3,571 $3,571 Current LlablABes $13,635 $14,569 $13,028 $14,109 $15,219 $13,191 $14,B13 $16.220 $13,355 $14,783 31S,933 313,525 Lang -Term Loan 4 $31.217 $30,409 $29,596 $28.779 $27.958 $27,129 $26,298q $25,461 i24,820 $28,774 $22,928 $22,066 Lang -Term Loan 2 $17.580 i 7 62 18 984 1 867 18 309 16 071 315.774 $15 76 $15179 $14 881 $14 583 $14,285 Total Uabi9des $62.412 $02280 $59 588 $59,614 59,544 $68 392 $58,684 57158 63155 $53 438 $53,440 $49,878 Common Stock $50,000 $60.000 $50,000 $50A00 $6%noo $60,M0 $50,000 $SCAM $M 000 $60,000 $50,000 $60,000 Retained Eamtruls 017,952 120.852 SMIRR $27,447 434 977 $38 07a. $42 736 $47.120 $51.231 $64 14 $57248 Toth Owees 67862 $70652 $74186 MA47 880434 $89977 31118.078. §92,736 $87120 $101231 1104,514 $107,248 TOT CIA$ NE7 WORTH $130,364 $132,912 $133,775 $137,061 $139.977 $140.359 $144,782'. $149,894 $160,275 $154,666 $157,954 4167,128 CHECK 5 so $0 $0 $o $a $0' so $o $0 $0 70 *Ns a.ngn.wr�y,n,eamcao.mi.r ayruse oynbo reba.00aa a48e0cIls„m,dey,wtSBWT Lc 11471=14 1218 PM Client Nemx SFAIW The UnivareOy of loser Small Business Dawalmle rtCerdw Sae one"dgame �t�.,.�� FINANCIALSTATEMENT: Pro Forme Income Statement 5nendat ls0)ecdmm from4nfeU OOe Cmnnmtitcatad'by CM Cued. Date Poured 11171=14 Via ma not ]Monad Cyft state of MOM to FUNIUM PUOOCACCOMMI rg sass stl4Bt$`D� and amSmwtora giva nozoplraon or aesumnw an the statemen s, Yourt MK-14 -14 44 JUIF14 Jul-14 Au 14 Sa 14 OcF14 Nov-14 DW4 Jowls POWs TOTALS REVENUE $0 W $o $80,000 $31,000: 588,000 $34,D00 SM,000 $33" SM.OW $30,000 $28,Oo S2e7.000 100.0% COST OF GOODS SOLD so $0 $0 S7 Boo S8 C60 $6,5M 840 190 ,w0 57 M9 $7 2M 4 020 26.0% GROSS PROFIT $0 $0 s0 20 122 $24420 $25180 $25g00 $24 $24420 $22.200 320720 $21 eW 74.0% EXPENSES: Ownm's Salary So $0 $0 SUM 92,SM $2,600 $2,600 $2,5011) 52,500 $2,500 $2.500 22,500 $22,500 7.8% Owner Payroll Teros ISM14 So $0 $0 $383 . $383 $383 Salle S38$ $383 $383 $388 $383 $3,448 1.2% Variable Employee Wages 26.00% $0 $o SO $7,500 $7,750 $6,25D $8,600 $6,750 M,260 $52w VADO $7,000 $71,750 25.0% Venable Payroll Taxes tO.85% $0 $0 so 5776 $SM $854 $080 $We $354 5854 5776 $M $7.425 20% W'odtem Camp 2JM $0 $0 $0 S1SO $155 $165 $170 $176 $tell $185 $160, $140 $1,48b 0.5% Matniemnce M $D s0 4175 $175 $175 S17S $175 $i75 $17S $175 $175 91.57E 05% AdiPmmotbn so so $0 =Do $tog s20O S= S2M SWO $200 S2DO SMO $1,3M 0.0% Acd S Legal $0 SO $0 $1S0 $150 $ISO $150 $150 $150 $ISO 1150 $150 $Irllw 0.5% Roth $0 So $0 $2.200 $2,200 $Z200 $2.20D $2,200 VROO 52,700 $2.200 SUM $1$MO 6.8% Telept- $0 So s0 $200 $200 $200 $2DO $200 $200 S2M $200 62M $lAw 0.0% MGM $800 $So0 $ego tw0 $MO $MO $w0 4OD0 $800 $Sao saw Saw $9,ew 3.3% Insurance Sago taw saw $350 $450 SSW $SW 1850 SSW $350 $850 $350. 54,200 1.9% Equipment Larem $200 $200 sm $200 $200 $2W $200 $200 $200 S8M 32110 $200 $2,400 0.6% Wasters" $150 $1SO $160 5150 - $150, Sim $150 S1SO $150 SIM $150 $150 91,9110 CA% Pod coned $0 $0 So $M $50 $W $50 $W $50 $60 350 $W 4450 02% Payroll SaMAM SO $0 $0 WE $125 $126 $125 $125 $125 $125 612E $126 $1,126 OA% Prepaid Expense $0 $0 $0 $0 $0 $0 $0 $0 $o $0 SO M 80 0.0% Crm3t Card Fen 2.0% $0 $0 s0 $BW $520 $880 M80 S7M $060 $MO $BM SSW $5,740 ZO% Supplies 5.0% $o so .SO $1,500 $i,sto $1,650 $1,700 .$1,750 $Lebo $1,680 $1,500 St.4OD $14,350 5.0% Cmnps 2.0% M M SO $800 SSW SSW $860 $700 "M Saw SBW $SW $5,740 2.0'% Ira -Loan1 $2M $281 5277 $273 $280 $265 $201 5257 5263 $248 $244 $240 33,156 1.1% Int-LOOK 2 $0 $0 $o s0 So so M SO $0 $0 So $0 M mo% Depreciation sell Sell $oil Senn Sell $811 $511 m11 Sett sell $811 $Sit $9,729 SA% Arrodha0on $11 111 $11 $11 . $11 Sill $11 .$11 oil $11 $11 Sit S118 0.0% TOTAL EXPENSES W7 '82M $60 $10,704 .$20,071 $20808 5,175 '421 $20798 $20702 $1 075 $19929 s191w1 8B.7% NET PROFIT BEFORE TAX MGM ($2,603) .($ZSM SZ496 '..S2,80• S9;812 MOMS.s4,358 $&e7e9 MGM52,52E i1,791 S21,P/e 7.3% INCOME TAX 25.0% :111834 .. .($e51) -' (SOS0) - $024 -'.: $717. $We Smm $1,O90 $908 ou 55311 we $51270 1.8% i PROFIT CENTERS so. S0.' '.._ -'$O ' $WOM: . i581;MD C '89a oDo..: .S34,w0. - MO sa MO $s9,oM $aooM $ OM 5257 100% TOTA€:.-. - $0 -. ;: SO - .. $0: '53 000 Vfgot;_,'.. SS9,Oo . ": 'S34 000 MO $88 Oo 9 Oo $80 00 $28 00 w 700% COGS '.. .. - ., . 5�.. .21.0% SO .. so $0 :' .; Sl Bo '._$EOM.. $8 80 ..:.M D ,,.$9100 $8 0 $B 00 $7 0 S7 8M 10046 TOTAL. 'rk '.. SO .: - $0 -. ': of $0 v ::$$'7,600 :.$BOMI-:. ', B,'SS0 -...M' D .M1M 580 $S.EW Sl D $T s74,820 10M ' rwrepwwwu4tiys.er�e0 rwuemneeenma Mpa e�emxon puewwe. to7 aeocen nvanmdtaeooreatrra IM712014 52:18 PM RMANCUL STATEMENT: Date Prepared Pro puma ln0ame amend flnM�l praSacflmer 8vm lMarmt tn7/2014 : lie are net ftBMed by are eiele a nW OBiI tbarehme Siva ne apintmt REVENUE $31,000 $33,000 sm.000 W5,000 smmw 498.o00 $38,000 ' $4d00O S39,000 138.000 : SaS.000 839,000 5420,Dm '100.0% COST OF G000S SOLD WpW $2Z 94o 28,550 E24 420 2H aso ffi see 49,100 $0,840 ss aso ss seo s15- $10140 $e eeo se 1m ae SW 25a%GROSSPR EE7a'9ETd8E8: ' _._ Qwnets SMW MOOD $2,500 42,500 $2,500 $2,W0 $2,600 $2,600 04500 $2,500 $2,500 0e rPeyrallTama 15.30% $983 $888 Sias i883 SWe $383 $W3 383 52,sm $2,Sm Wo,om 7.0% Ve�e PMODymaympT Wa9em 26.00% $7,750 $8,23D S9,Om $8.758 W,� $g000 SSW aW9 i3W assa $4,6W 1.1% 1/erletam PaymO Tman 10.35% W02 $854 $932 69,W0 510000 $8,7W $9.Wo $8,7W W,250 $107,8m. 25.0% Wadwrs amp 2.00% $156 Sias $180 $909 $175 $580 $932 Sees igW5 $1,009 $903 $908 $854 $11,075 2.8% Met nae $175 $175 $'175 1175 $170 $180 Ma $200 $1s5 $100 $175 $itS $2,100 0.5% AdrPlm oMn $2m $200 =00 $2m $176 $175 $178 � 75 $200 $200 8Y78 $176 $2,Ym 0.5% '"�&� a1W $1W s15D =0 $180 6200 a2m 820o a200 5200 82m S2,4m oe% Rent $2,200 $2,2m $2,2a0 iYW $2,2m a15o $2,Z80 $iSD S1S0 W 8150 $i50 $iW $1W $1,8m DA% Tmkphona 5200 82DD $200 $z,WB $2,240 322m $2,200 $2,200 $2.200 a2,2m $28.400 01% usa $824 3824 $8P4 m m $200 $200 I= $200 $200 $200 $200 $200 Sa,4m 0.8% Inemance $Wi $381 $824 $824 "m $824 "24 sm $824 Sam $824 ".ass 2.$% EgallaneM Lamm $2a8 $208 $W1 $200 Saet Sw1 $391 $381 pet $361 $381 $W1 $361 84,3W 1.0% MManllenedue $155 SS55 $155 $zW sans $IBS $� sm S20a $156 $1,664 OA% P�Cc" W o 350 i50 ;156 s15S Ms ;7% i155 *165 1}165 $tria $1W $155 free $t,W4 aA% i PayaoG Sarvbe $125 4125 0125 SW $125 SW W WO Iwo i30 SW SW 8W Sean 0.1% PMPeld expe m $0 $0 $125 $125 $125 $125 $125 $125 $126 Sim $1,600 oA% Credit Card Few 2.0% $1520 $eal 80 s72a $0 $700 So $WO $0 5720 $o 87W s0 #WO $0 W $0 40 W o.0% Suppoes SA% 51,Sm $1,SW $1.W0 $1,7W $1,700 $1,em S7,sm $2,m0 $750 $780 Poo Sew $0.5110 2.0% Camps 2.0% S020 $BW $720 Sian $WO $720 $790 $1,O5D Si,900 $1,760 $1,BW 021,400 5.0% ad -Lanni ease 8=2 s227 $223 $219 =4 fB00 j205 s780 $780 9700 SWO 88,W0 2D1A Irk-Lamr2 $0 so 4210 $201 floe $192 $187 $2,642 oe% Oepedeemr $011 $011 $0 $811 $0 $811 $0 $4 $o $0 $0 $a $0 $0 So 0.0% AmarIzadan $11 311 911 e.. 5811 ... $811 �.. $all _.. >8I ._.. $Bil $811 $811 $511 $9,729 2.3% NET PROFrr SEPORE TAX INCOMETAX 26.0% PRnpm r`FNTFina $2,868 S3.8m '$4,712 $4.347 $3,W2 $4.726 $BABB W,21a 85,846 $8,481 $4,270 $3944 565125:t $714 $900 $1.178 51,087 sm $1,181 $l,3Y17 $1,553 34.481 $1.370 31,005 Soil I Stasis Selw TOTAL $31 m0 $390m 438 Om 555000 $34000 $360m $380m swwo $S9D m $36,000 $35,W0 $88m0. 1. $48,wo 100% 00OS i81000 Om S860m 335 m0 L34,000 136,000 8om Moto $96000 S3 om $25,000 m0 4280m im% amee TOTAL 26.0% aeoW SB $83W $6loa 5 64B 0 ;BBW i1 m 10140 eW im OW 56,880 $9W0 8s 100 a8840 09360 s.BW $1O4m $10740 9 W s9.im 590 W D St112W $111280 t00% im% 1r�+enpa�°.e".x'are'®°emPBP�,dsxa,ra'^'uoeygswe+tuem o,oeamma (4maem. A.mw.memaroormn 117=14 12:18PM Cl m FINANCIAL STATEMENT: Pro Fmrea COM Flow, Bandsman .lnarrm pro)eet•es 8dm inform fm c=nlrsfed �tde WaPare • .. .. . Date Prepared IM712014 Were flat floemed by the Me to Mtaw'ne praaRW Pmlic n0 � , - .. •. . . . and can therefore pb,e no,opinlon or meum wa an am ata4mshhs. BOMET MONTH ye-wl er 4 r• " dial- 4 - 4 oK 14 75 TOM Cash Soh• CONSCOM from CMdB m m m $0 i0 $84000 $31,000 $33,000 $34,000 $m,OW Mom .i39,Mlp $m,000 i24000 Sm.000 TOTAL CASH RECSIVW $0 so so MOOD 581000 m Mow $0 $34000 so $$5OW m m3,000 i93,0$D so m - so $D GASH PAR) OUT 00 O40 .82aT Coal of Goods gold Oam es Salary $0 so $0 $7,800 $8.080 sesm $6,540 m,100 $3,500 m,580 $7,000 $7,200 $74,620 _ or Parsat T� s0 $0 iD $a so52,500 $x,3� i2�5oo $2,500 $2,500 $2,600 i2,500 $2,mp i2,m0 $22,500 V ployme Wag" m $0 $0 $D rasa $ses $303 $its $see $� $383 seas suit 33A43 Yatlebfe Payroll Texea m $7,60p i7,T5o SSAW $e,6oc m,750 I $4450 $4250 S7,500 $7,000 $71,750 Wmkere Comp $0 $0 $0 $0 ens $e02 $864 sells was I 4854 $854 $778 $726 $7,428 montbnance m $150 $155 $1m $170 $175 $105 $1e5 $15o $140 $1,05 AdhPromcilon $o $0 $0 $o $175 $175 $175 $175 ( $175 $175 $175 $175 $175 $1,676 Au3&tape! m $0 m $0 $200 $200 i20o $200 I $200 $2W $mD $200 $2oD $1,BDd Rant m m 9150 $15o $160 MO $160 $160 $150 $iso $1fd1 81,3m Telephone $0 so $2,200 $2,200 $2,200 $2,2D0 $2.200 i2,20d V= $2,200 $2,Zmf $10,800 LIEN" $80D m $800 m ow ixtm $200 i201) $no two $wo sm $200 $E05 $1,BDO fnaurence $350 $350 sm $Bap swo $600 0 I mop $No "Do $800 $SOD m,8DO EgWPmerd Lease s200 $200 im00 $350 am i950 950 $50 $350Sa5 $860 $950 0 $350 S4,2D0 M $1S0 $150 $ISO s2no $150 Von $2W $2D0 I $200 swo $200 "Do $200 $2,400 Postm f $0 $15D $150 $ISO S150 $160 $150 3150 $180 $1,80D Prepaid Service,$5D so m $0 m S50 $50 $m $80 $50 $so ss0 mb SOD Prepaid Expense so $125 $128 $126 $125 $125 $125 $125 $125 $125 $1,125 Crete Card Fem $a $D so m m $0 mp0 m $am m so m I. $o $0 $D m $o 0i $D 8ipgles $0 so m sm Ann $1.560 me0 $am $7$0 $ map moo $ m,7so Cohnpa $0 81&50 $lam $1,750 stem $1.650 61,5W SlAbb $14,m0 Ian - Loan 1 sm $0 $281 $0 $277 $000 4sm $No saw "an $660 $eea mW $586 $6.740 Ian-LM2 so sx73 pm ise5 $261 $257 $253 $240 $244 $m m,15e �'p'�'s0e $0 $0 $0 m $a m so Amad(ze1Wn m m $0 $0 som 30 m m m so $D so $0 eb $a Buhiowl $1,785 171" s1777 m S26602 $0m WvWll i84W7 $0 gm193 to 1 Memo to M564 $0 NUN so so $D i use $253e7 $211e059 Pfimm Prat -La 1 $704 $7D5 $70$ $713 $71T $721 $725 sm $734 $738 $742 Ih1Ne Prot -Loan2 gape was $see $zee ism smu ;28aIncu izae i225 W46 $6.883 Trams so $o m m Sz98 fatre azse $3,571 TCrr L mraL CASH PAID $x 784 $2 764 $2.784 $27AM $25,324 sm $2B 577 $0 $ D Bez m $1.586 $5 7D CHANGEINCASH ($2,784) i 754) 02,7" $2,307 $2,076 $3,123 16 $3,784 i3 Ba7 $4,159 $42a sow 693 17 327s 58M nnl Belenas 2 Boo MOBS M. $3,414 $2,907 (i417j $1350 417 .. . .'. _.. .. .. .. .. .... Iix.2•'"+4 m 0u7 $1018D $1 13 574027 i18 a34 _. mwnr� omwenw�pc�wate..a�.�arwoa�a wares, �e�asa ww,maamr,,,,,m 1n71211114 12:16Pa ClentNeme: FINANCIAL STATEMENT. Butter Pro Forma Cash Flow Ice university of Imwa mmea thm flttmtltl Dr$eo8ona from bafolmshon commubnlgtb Olbr�d. Dab Prepared 111712W4 Wemanot guea®ed bythsatah.of Iowa to MUM= PublicAccoun5rg and emthem$Me give rao OoWon or amsumtxo on the st bo Mrra. allOG ONTH ear CASH INFLOW-18 M5 Am, -IS m- JwIS AugAS Ows 5 I" TOTAL Cash Sedes Collodion ham CreM $31,000 SO $83AW 538,000 $35,oD0 VkOOO $36,000 $38,OW $40,000 S39ADO $88,OW SWA60 $33,000 $42s000 SO so W s0 SD $0 $0 $o 00 $0 $0 TOTAL CASH RECEIVED $31,000 $99000 $99,000 $35000 $34,00D S36 W $28000 $40000 539000 ReB,WO MOOD MOOO $42B.000 CASH PAID OUT OsetofSoode Sold $e,DW aim $0,380 $9,100 38,840 j $9,280 $9,88D $10,401) $10,140 $0,880 $9.100 ax" $111,28D Omwls Salary $248m0 $7,800 SZ500 $2,500 82.500 $2,500 $2,500 $2,SOD $200 S2,500 $1,8OO $'1,Wo $30W,0 Ovmar Payroll Taxes $3113 $383 $383 was $383 $3S3 $383 U83 SaS $383 $353 083 54,590 Variable Employee Wage, $7.750 $0,250 $9,000 $8,750 $B,WO $0,000 $9,500 310,000 $9,750 SBADD $0.750 $8,250 $107,000 Variable Payroll Tom $1102 $854 W212 $008 $880 $932 saws $1,035 $1.000 $983 $906 $854 $11,DT5 WOdmm Camp $155 $185 $180 $175 $170 $180 $120 $200 $195 $190 $173 $165 $2,140 MalMrnanoe 8175 E775 8175 5178 9175 $175 $175 $175 $1T5 $175 $175 $175 $$Ise Adli§Omo9M $200 $200 $20O $2DO $200 $200 S200 5200 $20o $2mo $2(0 $200 $2,400 Acct$LMW $150 $150 $150 8150 S180 WO $150 $ISO $iS0 $150 $150 $ISO $tA00 Rod $2,2W 82,20o $2,200 $2,200 $2,200 $2,200 $2,200 $=a $2,200 32,200 $2.200 S2,200 $0,400 Ttlephone $200 $200 $200 $200 $200' $2W $200 $200 $200 $200 $2W 32M "D U00$es $B24 $824 $824 UV 024 $524 $824 $824 Saw $524 $324 $824 axe inaurenm $381 6381 S381 $381 Will 081 $361 $391 $381 S361 $361 $381 S4.328 Equlpmard Lamm $206 S20a $205 $208 $200 $200 $2W 8208 S2W $2W $209 sma $$472 Mlacelarwous - $155 $155 SIBS $155 $155 $155 $155 $155 $155 $155 4156 3155 $1,854 Past Dental Sao $50 $50 $50 Sao $Se, $50 $50 $64) 'US $50 $50 $SW Payroll Service $125 $125 $126 $125 $125 $125 $125 $125 1125 $125 $125 1125 $1,WO Prepaid Expense $0 $0 $0 10 $m $0 $D W $0 so $0 SD $0 CmM Card Fees SICK) SBBO $720 am $080 $720 $760 $SW $70D $780 $Ise Sago salm SUPPOSS $I,SSo $.65D $1,W0 $1.750 $t,7W SLOW SING SZOOD $1,960 $1,80a $1,750 S1,9W $21,40D Comps "M $BW $720 $701) $800 $720 SM SaOo $780 VSD STW aeo $8,580 Int-LORI1 $= $232 $227 $229 $219 $214 $210 $205 $201 Sias $192 $187 $4542 Il-Loan 2 $D $0 m SO $O '. $0 $o g0 $g $0 $0 so W DepredKal So W $0 W $0 $0 SO $0 $0 SO $0 SO $0 ArrofflZathn W 40 $0 $0 $0 W W $0 $0 $0 $0 SO W Subt.kd $27320 $4578""' $30 $28831 '198 x. $30463 $31,7il* $32,1160 SSM33 831807 W.BOa W534 smm Pdmx Pmt-Low 1 . $751 $7s5' . - $759 - . $734 $768 $772 $777 :. MI S786 $700 S795 $799 89,298 Pdmc. Pmt-L.oar 2 $288 :. $=* $298 sass $293:; age - $298. • $sae $298 ass 32S8 $298 SSA71 Income Texas $0 -' so 22M SD So :. S3 - .80 ': $0 S4,381 W W $3.376 $13,Bla TOTAL CASH PAID ftwo M631 p"18 $30892 .990 i :... i84787. '= 7B"u:- $34047 $37787 M785 aQM 433,005 Sams$7 tIOVlUE IN CASH - $2,831 $8,8= $IAN $4,108 $55 $1,203 $5,,215 $4,108 ($B) 83eA33 59 118541 $105 0 . , iS144B $ R8 ' nailwprax„ww,elW eyae9eJ9aorMbbwedteewayama♦xh�ntl6d�oua 14 eeom80. Aver4hh asancrmaxw® 1117/2014 12:18 PM Client ame: FINANCIAL STATEMENT; Date Prepared Sianmary Balance sheet 1117/2014 n rally_ § gees opm nter tree pro . flnanciai pmjecdod r from Informaflon communicate! by But.Client We are not licked by the state of kmmio practice Public Account ng and can therefore ghee no opinion or as$srence on the stabemads. . 4Futrdin : t Nav-14'=lWr6 -A5 ov- e 6 Cash Inventory ($5,652) $2.254 $10,613 $16,917 $23,802 $32,662 W,033 564,360 Prepakla $6,000 $5,000 $6,000 $5,000 $5,opo $5,000 $5A00 $8,000 Current Assets $600 ($352) $500 $7,754 $500 $18,113 $WO $21,417 .s.°`lY,`_` $28,1Q2 WO t)98,962 $ 500 $50, $590 $69,860 Net Fixed Assets $112,588. $110.135 $107,704 $105,271 $102,839 $100.407 $97,976 $ Nat: Intangibles TOTAL ASSETS $1 967 111114182 $1 03 $1,900 $1887 1,fi33 $1,800 $1,767 a 733 $119,823 $125716 E28,656 $133775 $140369 $150275 1111"26 Taxes Payable ($1.952) $0 $0 $0 $0 so .$o so CPLTW_oan 1 $1032 98,984 $9,139 $9,296 $9,41iM 49.619 $9,785 $9,063 CPLTD-Loan 2 $3,571 $3,571 $3,571 $3,671 $3,5r1 $3,&71 $3,571 $3,671 Current Llabllides $10.451 $12,556 $12,710 $1208 $13,028 $13,191 $13,356 $13,525 Long -Term Loan 1 $39,053 $36,749 $34,405 $32,021 $29,* $77.129 $24,820 $22,088 Long -Term Loan 2 $20.538 $19.643 $18,750 $17 887 18 18 071 $15.179 $14 2116 Total L1ablumes $70039 W.947 $65865 M746 $59 $66,392 $58155 878 COmmon Stock Retained Earnings $5D,000 $50.000 $50,000 $50,000 $60.000 $50.6110 $64000 $90.000 Total Owner's Eaultv $44 143 $875 $9 861 16 809 $24,108 $33 277 $47120 $57 248 $50,875 $69 851 WrI109 474.128 $83,977 $97 120 $1078 TOT LEA & NET WORTH $114,182 $119,823 $126,716 $128,665 $133,775 $140,369 $150.275 $157,126 CHECK $0 $0 $0 $0 SO $o $0 Thla brryYeb wscaebtl byMeeeC en mtlmllrmleed Tor wa byeie a9�rntlm Ovmdffiwa. (e1SWCM lbellehlat S6aCTodanp� 1M712014 12:1a PM Client Nam' Fate PreAL STATEMENT: Date Prepared Butler Summary Income Statema t 1117=14 aMari owe ma Business Snandul � enter ParJ6cB.ed tram Information on edmmw8ece Puy the CI1 unt We are not ikemsd by ttm d Iowa 3o practice Public Accounting arsl UM }he191101 give no opirdon or eashrlarm on the statemanhr. e$e. . fhmrter Erdin : 14 14 Now14 Feb-16 Year -I 15 Au -15 -Nov15 .FdW Year2 REVEMIE $1 $94,000 $102,000 401.000 :$287,W0 5700,000 $105,000 4117,000 $106,000 $M.1000 COST OF GOODS SOLD $0 $24440 M520 WAII90 $7 820` $26000 $27 300 s90 027 0 $111 GRDSS PROFIT so $89,6a0 $75480 167340 W2,M F4,000 77700 $�5� s78 $91$720 EXPENSES: _ Ownses Eatery so $7.500 $7,500 $7,600 $22,500 07,500 $7,500 $7,600 $T,500 $30,000 Ow Payroll Taxes $0 $1,148 S1,148 $1,149 $30443 $1,148 $1.148 51,148 $1,148 $4,500 Vadeble Employee Wages $0 $=,500 $YS,S00 M750 $71,750 $25,000 $2B,250 $2S250 4110400 $167,11W Venable Payroll Texas $0 32,432 $2,839 SZ355 $7008 $2,588 32,717 $3,027 $2,743 $11.076 workers Corte $0 $470 $510 $455 $tAW $500 1111525 $585 $630 $$140 Maintenance$0 $= $525 $526 - $1,B7S $525 $525 $525 Me $R100 AdWromollon $D 111800 $800 $1.000 $600 $800 - $600 $800 S%400 Acct 3 Legal $0 1450 S460 $450 $4.350 "so $450 $450 $450 $1,000 Rerd 80 s5,800 ftem IlSlew $19,$99 $e,600 se,om 53,800 "Goo $26,400 Telephone $0 $8W $600 two $1,8M $800 $11W $am $2,400 t num krsureace $2.400 UAW smoo $2.400 "AM $2,472 $2,472 SZ472 $2,472 $"a $1,050 $1.050 31,oeo $1,050 $4,m $1,082 $1,08'2 $1,092 11,082 $4,326 Equipment Lease swo $500 =Go $800 $2 $818 sale $018 5816 $2,472 Miscellaneous $450 $45D "so $450 $1,BW $464 0484 $4" $464 $1,664 Post Coned s0 $150 $160 $150 $450 315D $150 ItIS0 $160 "M Paymu Service $0 337E $375 $375 $1,128 $376 ` $375 075 3375 $1,600 Pmpeid Expense $0 $0 so $o so $0 $0 $0 30 $0 Credit Clad Fees $0 $1.880 $2,040 $1,820 M740 52,000 $2,100 s2,340 SZ120 $8,560 St41p0en so $4.700 $5.100 $4.850 M360 $5,000 $5.00 $5,650 $6,300 $21AW Comps $o $1,880 $2,040 $1,620 $1%740 $2,000 $2,1oo $2,240 $2,120 $B.ew Ind - Loan? $844 $M $771 $733 M156 $885 $me $516 $576 $2,542 id - Loan 2 so s9 so s0 so $o s0 so $0 $0 Depredation $2.432 $2,432 $2.432 SZ432 S%729 $2,432 $2,432 82.432 $2,432 $9,729 Amortization $33 as $33 $33 $139 sw $33 $33 $33 2133 TOTALEXPENSES 7870 689 $821,613 $59398 Si91 01 No 846 9W,058 984939 $M81 AN NET PROFIT BEFORE TAX ($7,810) $8.977 $11,967 $7,944 70 $13,054 $17,624 $13,5W $55,252 INCOMETAX ($1.95M $2,2A4 $2,992 $1,988 a$2i.07S:$2.792 $3.254 $4.881 33,378 $13,813 Sates s0 394,000 $102,000 W.0001 $MANI 1000 $117 000 s10s.000 $420 000 TOTAL SO $ D00 $102 000 $91,0001 $2$7 $100 000 0106,000 Si17 000 S108 000 $= am COGS salsa 3o 324 440 $26.wo veew sm 000 327 380 420 SM7.Wo $111 230 TOTAL $0 $24,440 ,520 $23,680 $7 S20 $26 000 427 $90 420 S27 Wo 11 Tyra let,pwewa,aea4 bypaeaC 6o.,amYc.nrMmrvy,ya,a wgrinem, rsyMabvn. (q BWCW Aw®emsa®Craeaeem 1N7W4 1218 PM ClioName: FINANCIAL STATEMENT: Date Prepared Summary Cash Flow Statem d 1/17/2014 The UnWwWtyofIowaSma Busingsu Walopment rdsrt=preparedttese financial projections from Information communicated by the Client. We are not licansed by the state of Iowa to practice Public Accounting and can therefore give no opinion or assurance on the statements, uarter En n OAS FLOW a 5 Year 1 May-1T-AucF15 5 ear 2 Cash Sales trm Collection n Credit $0 $0 $94,000 $0 $102,000 $91;000 : $287,000 $100,000 $1D6,O00 $117,000 $108,000 $428,000 $0 $0 $0 � SO $0 $0 TOTAL CASH RECEIVED so $94 000 $1D2.D00 soII000 $287 000 $100 000 $105 000 $117,000 $1 000 $428,000 CASH PAID OUT Cost of Goads Sold $0 $24,440 $28,520 $2.1MM $74,620 $26,OW $27,300 $30,420 $27,580 $111,280 Owner's Salary $0 $7,500 $7,500 $7,6W $22,500 $7,500 $7.500 $7,500 $7,500 $30,000 Ulmer Payroll Taxes so $1,148 $1,148 $1!,148 $3,443 $1,148 $1,148 $1,148 $1,148 54A0 Variable Employee W $0 $23,600 $25,500 $2760 $71,780 9261DOO $28,250 $29,250 $261500 $107,000 Variable Payroll Tom30 ' $2,432 $2,639 J$,�c,355 $7An $2,588 $2,717 $3,027 $2,743 $11,075 Wodcescomp $0 $470 .$510 P455 $1,435 $500 $525 $685 $630 $2,140 Maintenance $0 $526 4526 n$525 $1,575 $SU $528 $526 $625 $2,100 Ad/Promotion $0 SOD $600 $600 $1,500 $800 $800 $800 $000 $$4W Acct&Legal SD $450 $450 0450 $1138D $450 $450 $480 $450 SIAN Rat $D $8,800 $8,800 $8,600 519,600 $8.600 $8,800 $6,600 $6,600 $26AOD Telephone $0 $000 $800 sew $1,8W $800 $600 $800 $800 $2,400 Uti08es $2,400 $2,400 $2,400 $2,400 $9,600 $2,472 $2,472 $2,472 12.472 Sg.66e Insurance $1.060 $1,050 $1,O50 $1050 $4,200 $1,082 $1,082 $1,082 $1,082 $4,326 Equipment Lease $800 $BOD $1100 "00 S21t00 $618 $618 $818 $818 $%472 Miscellaneous $450 $450 $450 0450 $i,8W $484 $484 $484 $404 $1.864 Post Contra] $0 $150 $150 L$L1�50 $460 $160 $150 $150 $160 $600 Payroll Service $0 $376 '$375 �375" $1,125 $375 $375 $376 $375 $1.600 Prepaid Expense So $D 1 $D $0.$0 so $0 $0 $0 Credit Card Fees SO $1,880 $2,040 $1.820 $5,740 $2,000 $2,100 $2.340 $2,120 $8,680 Suppler so $4.700 $6.100 $4,650 $14,350 $6,000 $5,250 $5,850 $5,300 MA00 Comps $0 $5,880 $2,040 $11.82g $5,740 $2,ODo $2,100 $2,340 $2,120 $6,560 Im-txm 1 $344 $808 $771 IS733 $3,166 $SW $858 $816 $578 $2,842 Im-Loan 2 $O $O . $0 $0 . $0 $0 $0 $0 $0 Depredation $0 1110. $0 $0 $0 - $A $0 $0 $0 $0 Amortization $0 $0 $0 $0 s0. $0 $0 $0 $0 So Subtotal M344 558- $87 567 . $8b.690 S250099: - : $88 385 $89 0 $07 011 $90,031 $362JW Pdno.Pmt icen1.. $2,115-: - .$Z152 $2.189: • 227 " $8,893: .. S22&5 $2,304 $2,344 52,384 $9,298 Print,Pmt-Loin,2 " $893 ' $8W: . $893' $693` _ ..$3,574, ' . 0893 $893 $893 $BB,q $g,sry Income Texas .. $p - $292= $1 988 2M -:: $2792 $3 84 $4,381 $3,376 $13,813 ... TOTALCASH-PAR) $8352 . $68894 $93,841'"'. $85,SM 5273383� ". $92315 $95940 5104,628 $911AM $389.W :•..CHANGE IN CASH- (58,352) - $111A . $8,359 " $0,304 $13;417: $7,685 $9,060 $12.372 sg,316 $38,433 • 'B nnin Balance. : _: $2"500 $6 62 - S2 254 _ " b 813 ,600 _ 575,917 $23 602 $32 862 $45 033 5.9171 ThefanPhrbwuaereebtl:bythe 8®C BDWW In ya,m"dfm,ea bye leisdebm (yseboac Avaftbet9WCTaaamn 11712014 12:18 PM -elfat Name: FINANCIAL STATEMENT: Date Prepared Butter Comparison Ratios 1/17/2014 SIC/NAICS Code: 0 Industry Average Year Year Not Sales: $287,000 $428,000 Total Assets: $128,555 $157,126 Assets: Cash & Equivalents 0.0% 12.4% 34.6% Accounts Receivable 0.0% 0.0% 0.0% Inventory 0.0% 3.9% 3.2% Other Current 0.0% 0.0% 0.0% Total CurrantAsssts 0.0% 16.3% 37.8% Not Fixed Assets 0.0% 81.9% 00.8% Intangibles 0.0% 1.5% 1.1% Other Non -Current 0.0% 0.4% 0.3% Total 100.0% 100.0% 100.0% Liabilities: Notes Payable -Short Tenn 0.D% 0.0% 0.0% CPLTD 0.0% 10.0% 8.8% Accounts Payable 0.0% 0.0% 0.0% Income Taxes Payable 0.0% 0.0% 0.0% Other Current Liabilities 0.0% 0.0% 0.0% . Total Current 1.1abll8ies 0.0% 10.0% 8.6% Long Term Debt 0.0% 38.8% 23.1 %. Deffered Taxes 0.0% 0.0% .. .0.0%. Other.Non-Cuaent.1laWliles..... 0_D% 0.0% 0.0% Net Worth 60A 51.20A Total Liablllties & Net Worth 16D.0% 100.0% 1.00.0%- - .. ._.. . Income Data: Net Sales 100.0% 100.0% 100.0% Gross Profit 0.0% 74.0% 74.0°% Operating Fagrenses 0.0% 65.6% 60.5% Operating Profit 0.0% 8.4% 5.3,p% All Other Eagranses 0.0% 1.1 % Profit Before Texas 0.0% 7.3%- Year 1 year Ratios: Current Ratio 0.0 1.7 4.4 Quick Ratio 0.0 1.2 4.D Sales/Recelvables 0.0 0 0.0 0 U 0 COGSBriventDry D.D 0 14.9 24 22.3 16 COGS/Payables D.0 0 0.0 0 - 5.0 0 Sole&WDrldng Capital 0.0 33.6 92 EBITArlterest 0.0 7.7 22,7 Net Pmflt+Depr., Dep., Amort/ CPLTD 0.0 2.4 - 4.8 FlxedjWorth 0.0 1.8 0.9 Debt/VVorth 0.0 1.0 0,5 % Profit Before Tares / Tangible Net Worth 0.0% 33.0% 52.4% % Proflt Before Taxes l Total Assets 0.0% 16.4% 38.2% Sales/NstFixedAssets D.0 2.7 4.6 Sales/TotalAssets 0.0 22 2.7, % Depr., Dap., Amort/Sales 0.0% 3.4% 2.3%a %Compensation/Sales 0.0% 7.8% 7.0% TNB tempterswas cnealed by aresBDC BD area Is ffa safes= by Baalreautgn Ileletlahave. (°)sBDcsD.AvexeblaaissocTmie.ddb7/2g14 12:18 PIA Am®i Dh Mbudon ma u.eaeya EgIft M"bugon Revenue DJebibu8on-.. . . � ,aYn Yn% _ wee aon ws ova +� YOY{ !Jn uIPYM m< HWWYW wuYr.wua,r � nMYY� /� 80% wrYrC( bpg CM1MwTw M1rM en � bn uM.tieva �mY sY®.reu w+w r. fYt ma mf wawoser,wm a]n >Nn 4yym SYt 7dM YOfi YpI 1Wf Yr, Yrs °� Yr1 Yr] q{ MM9Me MnbM Yrf YW] . Cunwd Ron as Quick Ran° - CaRamlwWn 8.6 2L YA OOAm• .-a-pq,gayAw 4.0 &° 2•9 I° �ewv mweYAw Y 1 ° ®nmr -s-y�ehy�vs QO YWY YW2 JV Q0 YWi YW2 ° ° YWY Yawl Caya In"r y Dan Papua Beim rMddag Cap(tW Ratl° 26 YB I i 14a ssa aoo ; MO ° o a YWt Yrr2 ° a YWY YW2 Yo.a 6.0 Le .+ Yeeri YQ2 ll�lgY�.�le4wamnr�dbirMVOl�tlwv M�wL wfiYwrgrr ,nfpt� Yhaiw IL ERIYl IWAPoet Rego NotprG t+Dopy Dop�An ortlCPL717RaSo KhW ttNarSl Rotle 0.0 4p 1.8 Ras ap LB 1.4 I" 40 12 as 1A B�aIOlf 2.0 CA � lP• a0 1.0 0.4 ap as �- 0..4 Y�1 Ymr2 0.0 Y�1 Y�2 Ywi YBR2 Debt)Worth PASS 12 1.0 as as CA 02 as YW I Y 2 Sales to NMKbod ANOW Roo a0 4s 40 as &p 2b 24 !S LO 40as fl� Yts1 Yar2 Return on Na? waft 80.p% aao% 4ao% 300%' ~ MM +btlueyM lam. a0 YMI YW2 as za LO i.a to as a0 Y.1 Yeet2 I 0~3 CampeneMlon ae a %o(t9mea . a0% ' Lp% Im am am erpwtlw Us. . �M.01M� aA1F zm LM ' YM1Ywar2 - ww.rw++rr>menwnsrrers..�.o�sw�m�esww�rrnw®ermm . 0 RMUM on Aeaeb 4MM JIM Mm 26.0% 2MM6 ISM lap% am ao% Y4Y1 Yv2 DeprwIaaon A Amo1%aa8un as a %of Seim 40% as% am zM C 22% 7A% 1Ati Rm 0.0% Ys1 Yur2 � 49i"M Prolected Sales and Cash Flew Pprfnrmnne Sales vs Break Even! Point (Years 1 and 2) 4451000 $40,000 $a6,000 f:a,0o0 WOOD f�,000 f15,m0 f10,Om fsm0 f0 MU-14 Apr-14 Mmy-W AmM4 Jd-14 AMW14 8ep-14 OcF14 NWn14 O1m14 Jaw15 F443 MmF15 Apa]6 Mey.16 &,Is JW46 Imq45 8ep48 Oi48 Nw15 Oeu15 JM-18 FaR]B --+—Manlhty8Blee—v—BnNC EIren POMtin Ceeh Flan i Change in Cash va Cash on Hand (Years 1 and 2) fegoho $40,000 MAN $z0,w0 $101OW - lga 14 ApM4 MW14 JMF14.�*!W Yft44 SWU OCA4. WM4 OvtrU ,MM6 fpb4b Mea15 Ap,15 May -is Am Ifi JC-16 Aeg]5 gmp16 OC-16 Nw-15 OeM6 Jawla Fah18 - - - vMm6dy Change M Cemh *Comb m Hmd-End d Mmlh - 11i1wpm�waar�aLlMaIDpmapd4bm�4Ma�bMve ms4drow. efemoe�.PoiYEkasepGioewbem 1M71 4 12Y19PM- Letter of Intent to Lease Commercial Space At 341 S. Linn St. We are pleased to present to you this letter which sets forth the terms on which Roadies720, LLC is willing to negotiate a lease for the portion of space in premises commonly known as 341 S. Linn St. Iowa City, IA 52240. This letter is not intended to be a binding contract, a lease, or an offer to lease, but is intended only to provide the basis for negotiations for a lease document between Court St. Apartments LLC (Landlord) and Roadies720, LLC (tenant). Property Size: Approximately 1267 square feet. Use: Restaurant Landlord: Court Street Apartments, LLC Lease Commencement Date: On or before January 1st, 2014. Proposed Rent: A�raduated rent of $12.00/sq. ft. the I't year and $13.00/sq. ft. the 2" year and $14.00/sq. ft. the 3`d and following years. Term: Initial term of five (5) years. Options to Renew: If the lease option is renewed the three (3) five (5) year options will be based on the Consumer Price Index. Options shall be executed by Tenant providing written notice to Landlord at least ninety (90) days prior to the expiration of the initial term. Property Taxes: Tenant will pay prorated share of taxes and insurance for the space. CAM: Tenant will pay prorated share of CAM charges. Utilities: Tenant will pay for all the utilities. Representation: Mark Lynch of Skogman Commercial. Signage: Tenant will provide signage. Landlord will allow for the restaurant's signage on the premises. Tenant Improvements: Landlord will give a $25,000 allowance for tenant improvements to upgrade electrical, add second bathroom, and add kitchen hood. The tenant will receive the first 90 days free to allow for the space to be remodeled. Parking: 2 Parking spaces will be designated for Roadies720, LLC in parking ramp. To be determined. Landlord will allow: Tenant to do improvements with landlord permission. See addendum for proposed improvements. Security Deposit: One month's rent. Roadies720, LLC All terms are accepted as proposed. Court Street Apartments, LLC This offer is subject to mutual approval of the final lease. Date Date An Agreement Establishing a Communication Protocol for Economic Development Activity in the Three Jurisdictions of Iowa City, Coralville, and North Liberty Purpose The cities of Iowa City, Coralville, and North Liberty (hereinafter "communities" or "participating communities") join in the prospect of encouraging economic development within their own jurisdictions and throughout the region. Working together, these communities seek to highlight the region's strengths and focus on maintaining an attractive environment for business growth and expansion. The communities seek to expand business opportunities within their own boundaries, but do not wish to do so at the expense of those participating in this Communication Plan Agreement. Inevitably, for various reasons, businesses may seek to migrate from one jurisdiction to another. In such cases, this agreement outlines a process that seeks to enhance communication and promote equity between the communities. With the exception of a business on its own initiating with another community a discussion about relocating, the communities agree that actively pursuing businesses to migrate from one participating community to another shall be prohibited and practices of performing such actions restricted. The purpose of this agreement is to: 1. Establish and facilitate interaction between communities to promote economic development in the region; 2. Express commitment from communities that they will not actively pursue the relocation of a business that has not independently indicated an interest in moving from one participating community to another and further not propose or offer incentives to a business in support of its relocation until the actions set forth in the Economic Development Communication Plan have been fully satisfied; 3. Establish a process that balances the interests of the business' home community and other participating communities; and 4. Establish a point of contact within each jurisdiction for communication about economic development matters. Definitions For the purposes of this agreement, "relocation" means the closure or substantial reduction of an enterprise's existing operations in one participating community and the initiation of substantially the same operation in another participating community. This agreement does not prohibit an enterprise from expanding its operations in another participating community provided that existing operations of a similar nature are not closed or substantially reduced. For the purposes of this agreement, "expansion" and "consolidation" shall be defined in a manner consistent with state law. DRAFT Economic Development Principles In the interest of promoting economic well-being and growth of our cities, we, the undersigned, agree to the following principles: Business Attraction and Retention. The regional economy will grow stronger and be more attractive for business growth if communities work together on economic development, rather than against one another. The communities in this agreement seek to grow the regional economy knowing that regional growth will translate into jurisdictional growth. The communities in this agreement are committed to attracting new businesses, retaining or expanding existing businesses, and promoting their cities as good places for business. While business migration will occur, the communities are dedicated to refraining from actively encouraging business migration from one city to another. Active Pursuit. The communities agree that when a business has not taken the initiative to express an interest in moving from one city to another, the communities will not actively pursue that business to encourage it to relocate. "Actively pursue" means to initiate contact with the business directly, with the intent of luring the business through cold calls, visits, mail solicitations, marketing, or through a third party. This does not preclude the communities from marketing themselves as a good place to do business, generally promoting the benefits of starting, expanding, or locating a business in their city, or responding to questions and requests for information posed by a business. If a community provides incentives for a speculative building or infrastructure, the community agrees to discourage developers, realtors and others involved with the project from recruiting businesses from the other participating communities. Moreover, in these cases, each participating community shall develop an agreement which each community would use with developers, realtors, and others involved with the project in their respective communities that specifically disallows this type of recruitment. The communities agree that businesses located in an incubator (designated space for business incubation) or other similar facilities supported in whole or in part by the Iowa City Area Development Group or the University of Iowa are not subject to the rules of this agreement when it relates to the relocation of a business from one of the above described facilities in one participating community to another participating community. Economic Development Communication Plan In the event a business residing in a different community ("the home community") contacts another community ("the contacted community") to discuss possible relocation or in the event a business desires to consolidate its operations (already established in two or more of the participating communities) to the contacted community, whether that contact be directly or through a representative, the following communication plan will be implemented: 1. The contacted community or its third party representative will advise the business that it wants to assist the business so that it is successful. 2. The contacted community or its third party representative will ask the business whether it has advised the home community that it is considering relocation, and if not, whether it objects to the contacted community advising the home community of the inquiry. 3. If the home community has not been advised and the business does not object, the contacted community or its third party representative will promptly notify the point of contact from the home community in writing of the inquiry. 4. If the home community has not been advised and the business does object, the contacted community or its third party representative will inform the company of the general terms of this agreement and applicable state law, and that no further discussions regarding relocation will take place until the home community is notified. S. The communities or their third party representatives will not propose or offer incentives to the business in support of its relocation until the home community has approved in writing that incentives can be used. 6. In the event that participating communities learn of a business considering relocation or consolidating operations from a participating community to a non -participating community, it will be the responsibility of those participating communities to inform each other of such. Priority of this Agreement The provisions of this agreement cannot be superseded by agreements for confidentiality or other contracts between a local government or nonprofit economic development organizations and a business. Local business will be made aware of this agreement immediately upon contacting a local government about relocating within the participating communities. Addition of Participants The communities strongly encourage other communities within the region to join this agreement. Upon request, the communities will consider the addition of other participating communities. Point of Contact For the purposes of this agreement, the points of contacts for the participating communities are as follows: 1. Iowa City: City Manager. 2. Coralville: City Administrator. 3. North Liberty: City Administrator. Term The agreement shall be effective when the agreement is signed by all communities and shall remain in effect until terminated in accordance with subparagraph 1 of the General Provisions below. Non -Substitution This agreement shall not constitute a "written agreement concerning the general use of economic incentives to attract commercial or industrial development" for purposes of Iowa Code Section 403.19(9)(a)(1). General Provisions 1. Termination: Any community can end its participation in this agreement by providing at least 180 days notice to the other communities. Such termination shall be effective as of the date stated on such a notice. In the event only one participating community remains, the agreement shall no longer be in effect. 2. Amendment or Modification: This agreement may be amended or modified by the participating communities, provided that any such modification or amendment shall only be effective upon written agreement of all participating communities. 3. Capacity to Execute: The undersigned hereby certifies that all actions necessary to execute this agreement were taken, and the person executing this agreement is authorized to do so and has the power to bind the jurisdiction to the terms and conditions herein. 4. No Third -party Beneficiaries. This agreement is not intended to benefit any person or entity not a party to this agreement and shall not be construed to do so. 5. No Agency Relationship. Nothing herein creates an agency relationship between the participants and nothing herein authorizes one participant to act as an agent of another participant or participants. Iowa City execution block Coralville execution block North Liberty execution block