HomeMy WebLinkAbout04-01-2014 Council Economic Development CommitteeAGENDA
City Council Economic Development Committee
Tuesday, April 1, 2014
8:00 a.m.
City Manager's Conference Room
City Hall
1. Call to Order
2. Consider approval of minutes from February 10, 2014 Economic
Development Committee meeting
3. Consider a request for assistance for Mission Creek Festival
4. Consider update to Iowa City Economic Development Policies
S. Consider request for assistance for I -JAG
6. Review Economic Development fund balances
7. Committee time
8. Other business
9. Adjournment
EDC February 10, 2014 1
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MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 10, 2014
CITY MANAGER'S 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, Steve
Long, Eleanor Dilkes
Others Present: Taki Mullins (Butter); Adam McLaughlin (Midwest One Bank); Bob
Long (MetaCommunications); Dan Cilek (Meta Communications);
Aly Brown (Press -Citizen); Andy Brodie (Film Scene); Bill
Thomasson (Film Scene); Laura Bergus (Film Scene); Mark Nolte
(ICAD); Nancy Quellhorst (Chamber)
RECOMMENDATIONS TO COUNCIL:
Payne moved to recommend the request for financial assistance from Film Scene
per staff recommendation. Hayek seconded the motion.
Motion carried 3-0.
Hayek moved to recommend the request for an Economic Development grant to
assist Meta Communications in their expansion and relocation per staff
recommendation. Payne seconded the motion.
Motion carried 3-0.
Payne moved to recommend the request for a CDBG Economic Development Loan
to Butter, a new breakfast and lunch restaurant, per staff recommendation. Hayek
seconded the motion.
Motion carried 3-0.
CALL MEETING TO ORDER:
The meeting was called to order by Chairperson Mims at 8:01 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 September 3, 2013, Economic
Development Committee meeting. There was no discussion.
Payne moved to approve minutes from the September 3, 2013, meeting as
submitted.
Hayek seconded the motion.
EDC February 10, 2014 2
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Motion carried 3-0.
CONSIDER REQUEST FOR FINANCIAL ASSISTANCE FROM FILM SCENE
Ford gave the background on this request. As noted in the packet information, two
separate studies have indicated a strong desire for movie theaters in the downtown
district. Two years ago, Andy Brodie and Andrew Sherburne approached the Planning
Department with plans to start an art house cinema that would fell this void. Staff worked
with Brodie and Sherburne to find the right space for this vision. After two years, the two
began to work with Marc Moen on the possibility of creating some space in the old Vito's
location for an initial venue. By this time, they had formed their board of directors,
incorporated as a non-profit and begun to raise funds.
Ford noted that Film Scene has been doing well, exceeding some early expectations,
but they still require financial assistance. As with many non-profit arts organizations,
they count on two sources of income — contributed funds (donations) and earned
revenues (ticket sales and concessions). Film Scene's projections are conservative in
terms of fundraising and tickets sales, and there will be a deficit for the first three years
of operation. Ford noted that Film Scene has requested three years of funding to get
them through until they can operate without a deficit. They have requested a declining
amount of $35,000 in FYI 5; $25,000 in FY 16 and $15,000 in FYI 7. This total of
$75,000 would reduce Film Scene's projected deficit of $179,000 at the end of the three-
year period, and also require a combination of additional fundraising and for them to
obtain an operating line -of -credit from their bank.
Ford noted that movie -going is an activity that helps to fill an entertainment void
downtown. She recalled for Members the rehab improvements made to the building,
and the assistance the developer received, specifically for replacing the roof, the HVAC
system, and adding an elevator in view of the future potential for the building as a non -
alcohol entertainment, retail and office venue in the ped mall. She noted the developer,
in turn, is helping Film Scene by providing a below -market rent rate for them. Ford also
referenced two the Council's strategic planning priority goals of having a vibrant urban
core and engaging in strategic economic development activities, and said that
supporting this request is aligned with City Council's Strategic Planning Priorities.
Andy Brody then addressed the Members. He said that they have been pleased with the
success of Film Scene so far. Film Scene has been open full-time for almost three
months now, and they have been averaging more than 40 people per show, and as of
this morning, have sold 5,770 tickets since opening full-time. He added that they now
anticipate 25,000 admissions in their first year of being open full-time, about 7,000 more
than their original projections.
Brody noted that they have a predominantly non -student membership program where
members pay an annual fee and receive $5.00 admission to all regular programming.
Normally tickets are $8.50 each, with a $7.50 price for a matinee, $6.50 for seniors 60+,
and $6.50 for University of Iowa students. They also hope to extend this discount to
Kirkwood College students in the future. Brody noted that about 700 to 800 of the
admissions were U of I students. The IndieGoGo (a web -based crowd sourcing)
Campaign netted around 225 members and a fundraising total of $91,000. So far more
than 900 individuals have made contributions to Film Scene through either the social
EDC February 10, 2014 3
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media campaign or through the Founder's Circle campaign and Film Scene has over
350 annual paying members currently.
Brody then responded to Members' questions about the jobs at Film Scene. There are
currently two full-time and one part-time employee, in addition to six part-time box office
staff and four part-time projectionists. Box office and concession staff starts at $7.50 an
hour plus tips, and shift managers make $8.00 while projectionists make $10.00 hour.
The head projectionist's pay is at $12.50 per hour, with the salary for the executive
director is $35,000; $30,000 for the operations director; and $15,000 for the part-time
marketing director. Payne asked if the possible minimum wage increase will have much
effect on Film Scene, and Brody stated that they have not looked at those numbers yet.
Hayek noted that the Board of Directors for Film Scene is packed with talent, adding that
this really gives him confidence for their success. He asked about fundraising for the
near future and how Film Scene plans to deal with this going forward. Brody responded,
noting they plan to increase membership in their $1,000 Founder's Circle level. Mims
then asked what impacts are expected if the College/Gilbert Street project moves
forward with Marc Moen. Brody noted that they did do a Letter of Intent to be included in
the project when it was first being discussed, and added that they hope to have the
College/Gilbert project as an expansion of Film Scene, not a replacement. As far as he
knows, the developer intends to keep the theater at the College/Gilbert Street location.
Brody also spoke to how he hopes to host a film festival one day, and that in concert
with the Englert and the eventual Chauncey project, they would be well on their way to
being able to host a substantial film festival.
Payne asked for an explanation of the difference between Scene 1 and Film Scene.
Brody said Scene 1 basically refers to the space at 118 E. College, and Scene 2 would
most likely be the next space. It is more of a marketing tool than anything else. With no
further discussion, Chairperson Mims asked for a motion.
Payne moved to recommend the request for financial assistance from Film Scene
per staff recommendation.
Hayek seconded the motion.
Motion carried 3-0.
Steve Long spoke to the Members regarding this grant request, noting that Meta
Communications is a software development company based in Iowa City. They have
thousands of customers all over the world, and have been housed in Iowa City since
1991. They also have offices in Chicago and St. Petersburg, Russia. Long stated that
Meta has outgrown their current space on South Gilbert Street and has been looking for
something in the downtown area. Due to several factors, namely the cost of staying
downtown, Meta began to look elsewhere. Long stated that they began to work with
Meta to help them stay in Iowa City as this is where they truly wanted to stay as they
expand their operations. One of the issues was the cost of parking for their employees.
Long stated that they came up with a way to assist by providing parking permits over a
three-year period and a declining number of permits over subsequent years, if their
goals to add 20 more employees were met. Another need is high-speed internet,
something currently missing in this area. Long noted that the City is working with South
Slope to provide the fiber optic line needed for this high-speed capability.
EDC February 10, 2014 4
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Long continued, explaining the costs for the Meta Communications' expansion. They
are currently looking at purchasing three floors. The actual purchase will be made by a
separate entity who will then lease back to Meta Communications. Looking ahead, Meta
plans to have 53 employees by the end of three years. Hayek asked about the total cost
to the City for this request, and Long explained. Over a 10-year period, there would be a
$222,720 value for the parking permits, plus the requested $58,600 of the total $300,000
build out costs. Long stated that staff is recommending approval of the funding request.
Payne stated that she thinks it sounds like an exciting project and she iooks forward to
having this downtown. Markus added that it shows the company's commitment to
downtown, as well. Bob Long from Meta added that they want to stay in Iowa City, that
having the University has been helpful for them as a feeder program and keeps the
talent coming. Hayek added that this is exactly the kind of creative class office
environment they are wanting downtown and that he supports it fully. Payne asked for
further clarification on the parking contract and how that wili work. Staff explained.
Hayek moved to recommend the request for an Economic Development grant to
assist Meta Communications in their expansion and relocation per staff
recommendation.
Payne seconded the motion.
Motion carried 3-0.
CONSIDER REQUEST FOR CDBG ED LOAN TO BUTTER, A NEW BREAKFAST
AND LUNCH RESTAURANT:
Tracy Hightshoe introduced the next item and applicant, Taki Mullins and his lender, who
were both present. She gave a brief description of the proposed restaurant, noting they
hope to open by June. It will be a breakfast and lunch restaurant. Startup costs are
estimated at $125,000. Midwest One has offered a financing commitment for $50,000
with the condition that the applicant could secure a $25,000 CDBG economic
development loan and put up $15,000 in cash. The landlord is willing to put in a $25,000
building allowance for some of upgrades. Hightshoe noted that the owner has consulted
with the Small Business Development Center process and has worked out the initial staff
concerns. The restaurant will create about 18 positions — three full-time staff at $10 -
$12 per hour and two full-time cooks. The rest of the jobs will be part-time. Staff is
recommending a $25,000 loan over seven years at 0% interest. Mims asked the owner
what brought him to Iowa City. He responded that he has always wanted to open a
gourmet -type breakfast and lunch restaurant. Markus asked what security there would
be for this loan, and Hightshoe noted that it is secured by a bank UCC lien.
Hayek asked if Hightshoe could give some history on how they have handled such
requests in the past for restaurants. Hightshoe noted that $20,000 to $35,000 has been
loaned in the past, typically capping out at $35,000. When interest rates were higher
they would charge more for such loans, but now with rates so low, they have been doing
0 to 1 %. Hightshoe explained how businesses such as this go through the Small
Business Development Center's evaluation before they can be considered for such
requests. Mims agreed that this will be a great addition to the Riverfront Crossings area.
Hayek added that this is one of the riskier types of loans we do, but that is inherent in
economic development. Markus asked that Hightshoe to give some background on how
many defaults they have had on such loans. She said none since 2006, and that one
EDC Febmary 10, 2014 5
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party is still paying them back, even though they defaulted. Markus added that they
have had very good luck with restaurants using this grant program.
Payne moved to recommend the request for a CDBG Economic Development Loan
to Butter, a new breakfast and lunch restaurant, per staff recommendation.
Hayek seconded the motion.
Motion carried 3-0.
Markus gave an update on his efforts to get an agreement between Iowa City, Coralville,
and North Liberty on how we communicate and cooperate regarding economic
development activities. He noted this is going to take a bit longer to do than he had
originally hoped. Hayek asked what other cities in the state have such agreements.
Markus noted the Quad Cities do and much of the language used in the initial draft is
from that, in particular, the part about businesses moving from one jurisdiction to
another. Another issue we have emulated is `Recruitment by Proxy," when a city gives a
developer an incentive, and the developer goes out and does the recruitment and
disbursement of the incentive. Markus noted that Mason City, Cedar Rapids and
Hiawatha have such agreements. As for the name of this agreement, Markus stated that
they softened this a bit as it was originally called an "Anti -Piracy Agreement." Mims
stated that she hopes they continue to move forward with this, and she noted the
Connect Five agreement. She also thanked staff for the work they have done with
companies to find accommodations in Iowa City to keep them here. Hayek stated that he
agrees this is a good document, and one that is fair to all jurisdictions, but he agrees that
they face challenges in getting the other jurisdictions to buy into it. Markus used JECC
as an example, noting that this was one of those issues that faced an uphill battle, and
yet now it is being touted as an exceptional model. Markus stated that Mark Nolte has
been included in the conversation, which helps to give some perspective to the bigger
picture.
COMMITTEE TIME:
Mims stated that she would like to have a discussion on the I -JAG program. There has
been a request for support of this program, and Mims stated that the question then
becomes — do we, as a City, support this work, and if so, where do the funds come from
She believes they need to have a discussion regarding where these funds will ultimately
come from.
STAFF TIME:
Report on Tourism Improvement Districts — Ford stated in November, the CVB
invited city managers to a statewide DMO Association meeting to listen to a keynote
speaker who spoke about tourism improvement districts, or TIDs. Ford further
explained noting that it is a district formed by petition by those within the district to
assess additional funds for marketing tourism in their communities. She said that the
speaker was an attorney who has been part of an advisory group helping other
states enact laws that would allow such activity in their states. Ford said currently
EDC February 10, 2014 6
PRELIMINARY
five or six other states have been using such districts for increasing their tourism
promotion.
• EntreFest 2014 Conference & Sponsorship — Ford talked about EntreFest, a
conference that is going to be hosted in downtown Iowa City, May 14, 15, and 16,
with a hoped for attendance of 500 people who are entrepreneurs, intra-preneurs or
economic development people for three days of learning, meeting and mingling. She
noted that the City Manager's office approved a $2,500 sponsorship for this event.
The Creative Corridor with Amanda Styron and her group are the event organizers.
• Real Estate Broker for Industrial Park — Ford noted that they are currently in
negotiations with a real estate broker who will be listing the industrial park on 420th
Street. Staff feels confident this broker will be able to bring some new businesses to
the industrial park. Hayek brought up how they need to be very conscious of buffers
in this area as things develop in the industrial park, the new school is built, and more
residential areas are developed as well. Davidson explained how the Southeast
District Plan covers this with a required greenway that will serve as this type of
buffer. The area will be a public green space that can allow for the transition from
industrial to residential. He added that if Council were interested they could go over
this plan at a work session.
• CDBG Economic Development loans — repayment update — Hightshoe noted that
currently they have 16 businesses in various stages of repayment. Over the past
year $55,000 has been repaid, and these funds are reinvested in the CDBG account.
Discerning Eye just paid off their loan, and Alphie's Beauty Supply will probably pay
off their loan next month.
• ESRI Market Data Information Sheets — Hightshoe noted that back in October of
2012, ESRI offered municipalities the ability to run 33 reports before deciding if they
wanted to order the service. She added that the service is quite expensive so staff
did not recommend it. However, staff did run 33 reports and they coordinated with
the National Development Council about what businesses, especially site selection
or developers, they would want to see in an area before they invest. Ten areas were
done throughout Iowa City, according to Hightshoe. She further explained what the
reports show — such as in a given area, what are the consumers like, how do they
spend their money. She noted how accurate the reports appear to be. Hightshoe
continued, explaining each page of the report and highlighting sections of particular
interest to the Members. She noted that the information will be on the City website
and the Economic Development web page for the public to !ook at.
• Davidson then noted the Court/Linn site — staff is preparing the RFP and hones to
get this out in March. Since the last discussion on this project, staff has updated the
parking demand figures for downtown in Riverfront Crossings, and now believe that
with the partnership with Midwest One Bank and the LLC that will be doing the
housing project on the Harrison Street site, that there is currently not a need for
another public parking facility. Demand numbers are down slightly, according to
Davidson, and permit waiting lists are shorter. Regarding the Midwest One Bank
project, Davidson shared that the rehab of the historic building and the construction
of the new building are both proceeding. Once the new office tower is completed,
the joint venture part of the Harrison Street project will begin.
• Davidson stated that the University hopes to have an RFP out in March on bringing
the Art Museum downtown. They are interested in the downtown and Riverfront
Crossings areas.
• Davidson shared that the two new buildings in Towncrest are occupied and open
now. There is one small retail space still available. The Williams Street streetscape
EDC February 10, 2014 7
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project should wrap up in the spring, according to Davidson. The Hospice is
proceeding with their fagade improvement program, as well. Davidson stated that
these improvements have had the desired effect — other businesses are now
interested in the Towncrest area and are looking into relocating there.
• Regarding the Chauncey project at Gilbert and College, Davidson noted that Marc
Moen has continued discussions with them on that project as he completes his Park
at 201 project.
• The project that was discussed for the Mumm's site on Riverside Drive was pulled by
the developer, according to Davidson. Staff has been in touch with the developer
who states that they are just making some slight changes and plan to come back
with plans shortly. This is for a mixed -use building with retail on the ground level and
40 residential units above it.
• The Packing and Provisions Buildings, formerly known as Vito's won an award from
the Thousand Friends of Iowa under'best practices for historic rehab buildings.'
• Davidson then noted the project at 700 S. Dubuque coordinated by the 404
Development Group is waiting for a State grant program to reopen, hopefully around
April 1. The State has indicated that they stand a good chance of accessing these
funds.
• Davidson added that the 404 Development Group is also working with New Pioneer
Co -Op on property east of the Rec Center. There will be more information on this
soon.
Hayek noted that when they were in Washington, D.C. last week they spoke about the
possibility of grant funding for their Transit building, due to the nature of that site and the
need for relocation of it. Davidson noted that they have been in touch with some of the
national franchise businesses, but that due to timing issues with relocation, have not
accelerated the redevelopment process. Mims added that what they heard in D.C. last
week didn't sound good as far as what kind of funding might be available for such a
project. Markus stated that they have also started conversations with other transit
facilities in the area to see if they are interested in working together.
Steve Long added that the NCAA swim meet has chosen Iowa City as its host city next
March. There is a committee consisting of staff, the UI Athletic Department, the CVB,
and the Downtown District to make sure they feel welcome. There will be several
thousand visitors from around the country.
OTHER BUSINESS:
None.
ADJOURNMENT:
Payne moved to adjourn the meeting at 9:20 A.M.
Hayek seconded the motion.
Motion carried 3-0.
EDC February 10, 2014 8
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Council Economic Development Committee
ATTENDANCE RECORD
2013 - 2014
TERM
o
M
0
0
0
NAME
EXP.
o
w
o
W
W
W
A
Michelle
01/02/14
X
' X
X
X
Payne
Matt
01/02/14
X
X
X
X
Hayek
Susan
01/02/U
X
X
X
X
Mims
Key:
X = Present
O = Absent
O/E = Absent/Excused
r
0._� ®�i CITY OF IOWA CITY
1, c1R �Tl MEMORANDUM
Date: March 24, 2014
To: Economic Development Committee
From: Wendy Ford, Economic Development Coordinator (,C
Re: Agenda Item #3: Consider a request for Funding from MissicA Creek
Iowa City's Mission Creek Festival is requesting $5,000 in funding assistance from the
City's Economic Development Assistance funds. The 2014 Festival, April 1-6, will be the
8th annual Mission Creek Festival and will continue a tradition of featuring fine music,
literary and culinary culture in more than 20 venues downtown Iowa City. New this year,
the festival will add programming to include film, theater, a series of events of youth and
a mini -tech + innovation conference. It is designed to appeal to audiences of all ages
and cultural backgrounds.
The event provides a venue for Iowa artists to be exposed to national attention and for
nationally recognized artists to gain an Iowa audience. The resulting coverage
increases Iowa's presence in the national scene and Iowa City as the cultural center of
the upper Midwest.
In 2013, the festival again hosted nearly 10,000 people, featured 280 musicians, 84
writers and 6 chefs. Of those, 135 musicians, 51 writers and all of the chefs were Iowa -
based.
There is broad support from businesses and our non-profit community, local radio
stations, media and several facets of the University of Iowa. Notably, local restaurants
are very strong contributors, an indicator that Mission Creek is good for their bottom
lines. With such broad community support, a growing program and increasing notoriety
the festival's influence reaches far beyond the Creative Corridor.
Staff is recommending support of this request. Mission Creek Festival helps to
strengthen our core urban area and offers increasingly diverse programming while
building upon the Creative Corridor brand.
Please feel free to contact me with questions. Andre Perry, Mission Creek festival
director, will also be in attendance at your meeting.
MISSION
ICREE�
FESTRL
Wendy Ford
Economic Development
City of Iowa City
March 5, 2014
Wendy
I am writing to submit a funding request to the City of Iowa City's Economic Development Committee in
the amount of $5,000 for Mission Creek Festival 2014 (April 1 — 6, 2014). We deeply appreciate the
history of support, financial and advisory, from the City of Iowa City. Our festival continues to grow in
positive ways from year to year. This document includes some of the basic information about the
organization including past year data, 2014 budget, and staff bios.
With a focus on music, literature, and food culture, Mission Creek Festival provides the greatest
opportunities for Iowa -based artists to perform their work as well as for Iowa -based patrons to see
nationally and internationally -regarded artists. Our literary arm is the longest -running literary festival in
Iowa City. Our music programming consistently brings notable acts to Iowa City for the first time, thus
increasing our stature amongst prominent artist booking agents. Mission Creek Festival continues to
garner positive and strong regional coverage as well as national coverage from publications in the music
and literary worlds, thus increasing the spotlight on Iowa City as a cultural center.
In 2014, we have expanded our programming offerings by adding more events for K— 8 youth, a film
series presented in conjunction with FilmScene, and a two-day tech + innovation conference within the
overall festival. We are also excited to announce that we are developing a long-term partnership with the
Englert Theatre in which that organization will become the official home of the festival, providing important
administrative support to help ensure the sustainability of the Mission Creek initiative for many years to
come.
Thank You,
Andre Perry
Mission Creek Festival, Director
Organizational Information
Organization: The James Gang dba Mission Creek Festival
Event: Mission Creek Festival / httc://missionfreak.com
Dates: April 1 - 6, 2014 / Attendance:—10,000/year
Contact: Andre Perry / 210 North Gilbert Street, Iowa City, Iowa 52245
319 594-9135 / andre@englet.org
About
Founded in 2005, Mission Creek Festival is an annual week-long festival that takes place every spring in
Downtown Iowa City. The festival is dedicated to inspiring and building the Iowa City area's artistic
communities through the exposure of local, regional, national, and international artists. The programming
focuses on literary readings, music performances, public lectures, local food culture, and educationai
outreach. In 2014, programming will expand to include film, theater, a series of events for youth, and a
mini -tech + innovation conference. The festival serves audiences of all ages and cultural backgrounds.
The festival also utilizes the existing cultural geography of our town — bookstores, clothing stores, cafes,
and performance spaces — turning the downtown area into an easily -navigated nexus of music, art, and
transformative experiences.
The primary objective of the Mission Creek Festival is to enhance the quality of life in the community
through diverse arts programming that caters to young and creative individuals, traditional patrons of the
arts, and general members of the community. It is our belief that students, professionals, new transplants,
young families, and lifelong residents can work together to infuse a community with vitality. In our
continuing dedication to new and progressive art forms, as well as broadening the scope of the festival to
include initiatives like local food culture and educational outreach, we present festival artists and
attendees with programming experiences uncommon in the Southeastern Iowa cultural landscape.
Consequently, our festival increasingly draws comparisons to nationally recognized events like South By
Southwest in Austin, Texas and Litquake Festival in San Francisco, California.
This festival has literally grown from "the ground up," with the support of local and regional businesses
that continues to sustain us. Many of our sponsors have noted how our event not only deepens the
cultural fabric of the Cedar Rapids/Iowa City "Corridor," but also drives residents and revenue toward
locally -owned shops and restaurants. We work closely with our local business partners and sponsors to
assess needs, measure outcomes, and arrange in -kind and promotional donations that highlight the
area's resources and services.
2013 Festival — Quick Facts
Attendance: 9,800 (3-year average: 9,800)
Number of featured musicians: 280 / Number of featured writers: 84
Number of Iowa -based musicians: 135 / Number of Iowa -based writers: 51
Number of Iowa -based chefs: 6
Venues in 2013 (22 venues): The Englert Theatre, Blue Moose, The Mill, Gabes, Clinton Street Social
Club, Prairie Lights, RSVP, Foxhead, MC Ginsberg, Revival, Yacht Club, Deadwood, Joe's Place,
Beadology, Takanami, Motley Cow, Iowa City Public Library, Old Capitol Senate Chamber, Public Space
One, Dublin Underground, Times Club, White Rabbit
Sponsors/Supporters in 2013 (30 sponsors / 46.5K in sponsorship funds): University of Iowa
Community Credit Union (Title Sponsor), City of Iowa City, West Music, MC Ginsberg, New Pioneer Co -
Op, Iowa City Sheraton, Iowa City/Coralville Convention and Visitors Bureau, Catherine's, New Belgium
Brewing, Jim Beam Global, Little Village, Musician's Pro Shop, Joe's Place, Revival, Record Collector,
Motley Cow, Devotay, Augusta, Yotopia, Takanaml, Deluxe Bakery, RSVP, Iowa Public Radio, Iowa City
Downtown District, Tuesday Agency, Aspen Dental, and University of Iowa: Hancher Auditorium, SCOPE,
KRUI, Center for Human Rights.
Selected Past Festival Performers/Writers/Lecturers (2006 — 20131: Grizzly Bear, David Cross, Tig
Notaro, Bon Iver, Beach House, the Magnetic Fields, Guided By Voices, Thurston Moore & Kim Gordon
of Sonic Youth, John Waters, Patty Griffin, Greg Brown, Pieta Brown, Bowerbirds, GZA/Genius, Public
Enemy, Divine Fits, Theo & The Get Dow Stay Down, the Mountain Goats, Dan Deacon, Fruit Bats, Zola
Jesus, No Age, the Antlers, Camera Obscure, Tilly and the Wail, Sharon Van Etten, Coison Whitehead,
Aleksander Hemon, Charles D'Ambrosio, Edmund White, Eula Biss, Tim Hecker, Rhys Chatham, The
Meat Puppets, William Elliott Whitmore, D.A. Powell, Booker T., Kiki Petrosino, and hundreds more...
More Facts:
-In 2043: We continued to grow our Artist -in -Residency series, this year focusing on two visiting writers —
Roxane Gay and Cornelius Eady—who spent several days in Iowa City during the festival connecting
with the community through workshops, readings, and lectures.
-Mission Creek staffers regularly attend important industry conferences and events — South by Southwest
(Austin), Association of Writers and Writing Programs Annual Conference (Boston in 2013, Seattle in
2014), Association of Performing Arts Presenters Annual Conference (New York), Litquake (San
Francisco), Arts Midwest (Austin in 2013), Conversations and Connections (Washington, D.C.) — as
representatives of Iowa City's cultural milieu, thus expanding, on a national level, knowledge and
recognition of the events that occur in our town.
Future Goals:
-Expansion of overall programming: Youth programming, film, tech conference
-Establishing cash reserves to ensure long-term sustainability
-Increasing staff salaries to ensure that talented, experienced, and dedicated individuals will oversee
festival planning and execution
H. Mission Creek Festival Budget Overview FY2014
Revenue
2014(projected)
2013(actual)
Festival pass sales:
16,500
16,500
Individual tickets sales:
70,000
71,250
Sponsorships — cash:
41,000
46,550
Sponsorships — in -kind:
5,000
5,600
Total revenue:
132,500
139,900
Expenses
Staffing*:
19,000
11,500
Programming & Outreach:
101,000
118,100
Marketing:
6,000
5,600
Administration, Production:
4,000
3,500
Total costs:
130,000
138,700
Net/(Balance):
2,500
1,200
III. Staff Bios
Andre Perry, Festival Director
Andre Perry lives in Iowa City where he serves as the Executive Director of the Englert Theatre, a 101-
year-old performing arts space in the heart of downtown. He is also the co-founder and director of the
Mission Creek Festival, a weeklong exaloration of music, literature, and food culture that inhabits
established venues as well as non-traditional performance spaces in Iowa City. Perry received his MFA
from the Nonfiction Writing Program at the University of Iowa (2008) and his BA in English from Princeton
University (2000). He continues to write and publish in the field.
Joseph Tiefenthaler, Associate Director of Literary Programming
Joseph M. Tiefenthaler is a native Iowan and received his BA in English from the University of Iowa
(2005). He is the Fall Residency Coordinator at the University of Iowa's International Writing Program, in
which he annually serves as the cultural ambassador from Iowa City for roughly 30 writers from around
the world. He also co -leads literary outreach trips with American writers in foreign lands, most recently
helming a trip of three U.S. writers to the nation of Brazil in May 2012. Joe is the Assistant Fiction Editor
for acclaimed literary journal, Wag's Revue.
Christopher Wiersema, Associate Director of Programming
Leaving a position at Chicago's Newcity magazine, where he covered arts and culture, Chris relocated to
Iowa City in 2001 and found a fertile arts community that offered encouragement, collaboration, and
enthusiasm. Noticing a deficit in avant-garde music programming, Chris began a music promotion
company, Outsound Productions, with little more than his email, a clutch of extension cords, the promise
of a home -cooked meal, and tacit permission to use a closed downtown business as a venue. Since then
his productions have occupied traditional and non-traditional venues alike. The scope of his musical focus
now includes myriad genres and he has hosted artists, composers, and musicians from around the world.
Chris previously served as manager of local music venue, the Picador, and currently serves as a
programmer at the Mill. He has studied at Columbia College and the School of the Art Institute of
Chicago.
CITY OF IOWA CITY
MEMORANDUM
Date: March 27, 2014
To: City Council Economic Development Committee
From: Jeff Davidson, Economic Development Administrator
Re: Agenda item #4: Consider approving update of TIF and ED policies.
We continue to refine our policies related to financial incentives offered by the City of Iowa City
for development projects. It is best for all parties involved if there can be a clearly defined
expectation on when financial incentives will be considered. Chief among these financial
incentives is Tax Increment Financing (TIF).
With the City Council's recent reconsideration of the City's Strategic Plan, we thought it
appropriate to examine our adopted economic development policies in light of the Strategic
Plan. The City's economic development policies should be consistent with and help implement
the goals of the Strategic Plan. We are attempting to represent to the development community
that TIF assistance is a partnership, not an entitlement. If developers are going to receive TIF
assistance, they should be prepared to address community objectives that are called out in the
City Council's adopted Strategic Plan.
Attached is a revised version of our ED policies with the proposed modifications called out in
red. Let's plan on discussing these at your February 10 EDC meeting, and determine on which
modifications there is consensus to proceed.
It should be noted that in some respects these policies may put us in a competitive
disadvantage with our neighboring communities. We are aware of ongoing projects approved
for public financial assistance in neighboring communities which would not be approved in Iowa
City under these policies, both existing and as proposed. The City Council needs to be
comfortable with this distinction. We need to endeavor to find the appropriate balance between
business friendly and fiscally responsible.
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Economic Development Policies
April, 2014
It shall be the policy of the City of Iowa City to use the City
Council Strategic Plan as the basis for its economic �� ®®�hit6i CITY
activities. Inherent in the plan is to attract
new development including residential, commercial and industrial uses to grow the tax base.
Further, the purpose of the plan is to retain the City's existing businesses and to encourage
business expansion. The City's Strategic Plan also supports organizations which help to
incubate, foster and grow new business operations by providing non-traditional collaborative
environments.
The expected result of these activities are: increased economic activity, more jobs, lower
unemployment, higher wages, greater property values, more tax revenues, more ownership and
entrepreneurial opportunities and revitalization of underutilized or blighted areas.
The City will consider the use of financial incentive programs including City, State and Federal
economic development funds, tax increment financing, public private partnerships and other
tools in order to achieve the expected results.
It will be the policy of the City of Iowa City to endeavor to attract, recruit, retain, foster and
develop business that is new to our region or metropolitan statistical area (MSA) through the
use of incentives. The City will not actively recruit business from other jurisdictions within our
MSA unless a business is seeking to expand or considering relocation outside the state. Should
businesses from jurisdictions within our MSA wish to locate in Iowa City we will notify our
neighboring jurisdiction of the interest. It will be the general practice of the City of Iowa City to
not provide economic incentives to business wishing to relocate from another jurisdiction within
our MSA unless a business is seeking to expand or considering a relocation outside the state.
Projects requesting City financial assistance will be subject to a financial analysis which
determines if City financial assistance is appropriate. The analysis will examine all financing
sources for a project and the project costs, with a focus on the developer's return, based largely
on developer equity and the maximization of project debt. This process allows consideration of
public financing that fills a gap and precludes undue enrichment to the developer. Special
consideration may be given to projects where the City is competing outside our MSA for
interstate commerce business.
The use of TIF rebates shall be considered highly preferable to the alternative, "cash upfront"
TIF. For upfront financing, additional security is required.
Additionally, various evaluative tools including financial pro formas, written evaluation reports,
established benefit metrics, and other performance tools may be used to evaluate the use of
economic incentives from the early stages of project development through the issuance of an
incentive and post incentive to make sure the objectives are met.
Developers who receive incentives will be expected to enter into development agreements
which delineate the terms, conditions, understandings, expected results and the performance
measures required for receiving incentives.
When incentive programs are used, they will be used to maximize the benefits to the City of
Iowa City. The dollar amount and time duration of the incentive shall be smallest amount
necessary to achieve the maximum amount of city benefit as determined by the City Council.
In return for pu, : financial assistance, developers will be expected to meet all or some of the
following minimL..n standards:
• Achieve high quality architectural and site design
Offer energy efficiency and sustainability features beyond what is required through
adopted building codes
• If a residential project, the contribution to an affordable housing fund or the provision of a
certain percent of affordable housing units within the project
• Creation and retention of high quality jobs
+ Developer equity (not including debt) to be equal to or greater than the public financing
requested
• The redevelopment of underutilized and/or blighted properties
• Projects achieving public purposes as detailed in comprehensive planning and/or Urban
Renewal Area planning documents.
Despite the need for the program to be flexible and nimble in order to respond to the ever
changing economic conditions of the marketplace, it will be the policy of the City to ensure that
the process of using incentives is an open and transparent public process which instills
confidence in the public's understanding of how economic development incentives are utilized.
See also companion documents:
• Understanding Iowa City's Due Diligence Process for Gap Financing with TIF
• Application for Gap Financing
+ Key Elements in Financial Analysis
Understanding Iowa City's
due diligence process for
gap financing with TIF
What to expect, time -wise
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Cd i Y OF IOWA CITY
To be eligible for Tax Increment Financing (TIF) a developer
must show a public benefit to the project and a financial gap to fill. The
City may provide gap financing to projects in designated areas meeting public policy goals.
Projects must be structured so that private debt is maximized and developer equity yields a fair
return while not providing undue enrichment to the developer. City policy for financial
participation in development projects is to be "the last dollars in," if merited, and should not
exceed developer equity.
After all other financing is secured, a developer may submit an application and the City will
conduct its due diligence. This will involve a thorough analysis of all the project costs including
design, land acquisition, construction loan and permanent financing and projected revenues and
expenses in the operation of the building over 20 years. Through this analysis, we are able to
confirm a stabilized net operating income, the fair market value of the project and most
importantly, whether projected returns to the developer are reasonable.
Once a project appears to show a reasonable financial gap which could be funded with City
assistance, City staff must 1) amend the appropriate urban renewal plan to include the project (if
necessary) and 2) negotiate a development agreement that among other things, stipulates the
type of funding-- rebate or cash up front, a minimum assessment of the property to ensure that
the City is repaid in property taxes (if financing is cash up front and not rebated), and the details
of the minimum improvements, etc.
Here is an estimated timeline for the required steps. It could move a bit faster, but this is a
realistic scenario if everything falls into place.
If the developer:
• Has a well-defined concept plan for design and financing of the project, and
• has provided all the financial information in the application for gap financing,
• the City can provide an initial analysis within two weeks.
If/when the financial analysis meets the City's Economic Development standards, in that there is
a public benefit to the project and:
• there is a financial gap, and
• the City participation would be last dollars in, and
• the developers would net a reasonable return (as determined by research conducted by our
consultant at the National Development Council (NDC)),
• then we can begin negotiating a development agreement. The development agreement can
be drafted within 10 working days, once the developer and the City have agreed to the basic
terms.
When we have a draft development agreement to which all can agree:
• We may simultaneously send the draft agreement and a staff recommendation to the
Economic Development Committee (a subcommittee of the City Council). This requires at
Understanding gap analysis, p.1
least a week's time for scheduling the ED committee meeting and for staff to write a
supporting document to send out with the meeting packet, and
We will start the process of amending the Urban Renewal Plan to include the specifics about
your project. This requires 2 City Council meetings, which can usually be accomplished in
about 6 weeks, given the required time for meeting notices and packet assembly. The first of
the two meetings is for a "Resolution of Necessity" and the second, approximately a month
later, is to adopt the amendment to the plan.
If a Development Agreement has been signed by all parties, prior to that 2nd City Council
meeting adopting the plan, then
A resolution to approve the Developers Agreement can also be on the same agenda —
providing the Urban Renewal Plan amendment was approved earlier.
Cash up front TIF vs TIF Rebates = who bears the greatest risk?
Cash up front TIFs are politically and financially more difficult. For cash up front, we require,
among other performance measures, that the developer agree to a minimum assessment on the
project property (and sometimes additional properties they hold within a district) for a certain
period of years, to enable the City to pay itself back with the TIF increment generated from the
project and sometimes additional developer -owned property in the area. The duration and dollar
amount determined for the minimum assessment includes the City (public's) cost of financing
the project until it is recaptured by the TIF revenues the project generates. This option is more
expensive and requires the City bear more risk than the other option — TIF rebates — which is
why it is more difficult, politically.
TIF rebates are still political, but they put most of the risk on the developer. They are simpler
because they only require that the taxes paid on a successful development be rebated back to
the developer — with no financing costs and no risk to the public — with the exception of the
diversion of tax dollars to the TIF fund.
If the financial gap in a project could be covered by a TIF rebate as opposed to cash up front, it
is highly preferable. Tax rebates would begin about 18 months after taxes were paid in due to
the lag time in property tax assessment year and revenue collections. It is important to note that
while property taxes are paid in at the Consolidated Property Tax Levy of $38.64 per $1000
valuation, the TIF levy, and rebates are calculated with $30.36 per $1000 (for FY 14 on Jan. '12
valuations), and they change somewhat every year.
What to expect in the Financial Analysis process
First, a few definitions...
Gap defined
A financial gap is determined by the difference between all financing sources for a project and
the project costs, with a focus on the developer's return, which is based in large part on
developer equity and the maximization (attraction) of project debt. This allows consideration of
public financing that fills a gap yet does not provide for undue enrichment to the developer.
Market standards apply. Among other things, our gap analysis requires a firm project
development budget and operating pro forma supported by an independent market study. In the
end, a recommendation to Council will hinge on the reasonability of the developer's return,
public benefit and availability of public financing.
Understanding gap analysis, p.2
The gap is not simply the difference between how much a desirable project costs and the
financial resources to which a developer has access.
Equity defined
In the context of real estate development, equity is the difference between the current market
value of the property and the amount the owner still owes on the remaining debt for it. It is the
amount that the owner would receive after selling a property and paying off all debt on it.
Capitalization Rate defined
A "cap rate' determines value of a project. It is the number of cents of project income (net
operating income, NOI, or annual cash flow) required by an investor for every dollar of purchase
price paid, if a developer demanded a 7% cap rate, they would be willing to pay $1 for every 7¢
of NOI. If they demanded a 10% cap rate, they would be willing to pay $1 for every 100 of NOI.
Higher cap rates mean there is higher risk indicated by the investor's requirement for more of
the annual cash flow. It measures a return on all invested capital - debt and equity.
Market Cap Rate defined
Market Cap Rates are used to determine value by comparable transactions in the same market.
The same equation is used as for cap rates, but considers an entire market's actual
transactions, as compared to the investor's individual demands (see also #3 below) Market cap
rates in downtown Iowa City are in the 7% range; in an area that struggles economically, the
market cap rate would be expected to be slightly higher.
For in-depth information on the specifics of Iowa City's gap analysis, please see the
document:
If you have any questions, please feel free to contact me at any time:
Wendy Ford
Economic Development Coordinator
wendy-ford@iowa-city.org
319-356-5248
Understanding gap analysis, p.3
Application for gap financing
In Iowa City, projects considered for financial assistance with
public funding are evaluated for financial viability to ensure
�a an acceptable return on developer equity investment,
❖ maximizing the project's debt capacity, and
❖ that there is a benefit to the public.
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CITY OF IOWA CITY
A gap is determined by the difference between all the financing sources for a project and the
project costs or uses, with a sharp focus on the developer's return on investment and the project
debt. This allows us to size the City financing so that a gap is filled and yet does not provide for
undue enrichment. Our gap analysis requires a firm project development budget and operating
pro forma supported by an independent market study. We must obtain this before we can
negotiate an amount of City financing to present for Council consideration. In the final analysis,
our recommendation to Council will hinae on the reasonability of the developer's return and
availability of public financing.
Your application for GAP financing is complete when all of the following items have been
submitted to city staff or to our financial analysis consultants with the National
Development Council (NDC).
1. Description of project and development schedule
2. Detailed project development budget — include estimated tax credit basis and the basis for
construction estimate i.e. construction bids or architect estimate on cost per square foot
etc. (Must also be provided in an Excel file.)
3. Market analysis addressing the feasibility (viability) of the proposed uses of the
development (absorption, vacancy, expenses, capture rates, etc.)
4. 20 Year proforma (Must also be provided in an Excel file.)
5. Sources & uses of funds and flow of funds through lease -up (Must also be provided in an
Excel file.)
a. Include rate sheet or letter with terms from financial institution/s
b. Include a contact at each financial institution
B. Statement of Qualifications & References for development team (include experience with
public financing sources)
7. Status of applicable regulatory approvals i.e. Zoning, FAA, State, etc.
8. Construction contract (or at minimum, construction cost estimate from architect or
contractor)
9. Appraisal of finished project
10. Environmental - Phase I (Phase II if applicable)
11. Financial Statement of owner/developer (last three years)
12. Project location, description of area, photos & maps
13. Community impact and support — public policy goals met i.e. job creation, provision of
workforce housing, implementation of adopted plans, etc.
14. Signed due diligence cover page (see following page)
If you have any questions, please feel free to contact me:
Wendy Ford
Economic Development Coordinator
wendy-ford@iowa-city.org j 319-356-5248
Application for gap financing, p.1
DUE DILIGENCE PACKAGE COVER PAGE - must be included with submission
Project Name:
1 certify that all information submitted for the Financial Gap analysis for is accurate and 1
understand City may contact bank representatives during the due diligence process.
Developer's Signature:
Please print name:
Date:
Application for gap financing, p.2
Key elements to the
financial analysis
1) A Project Cost Summary - shows what it costs to get the
building out of the ground (Project Cost Summary
Worksheet)
Acquisition Cost
+ Renovation/Construction Cost
+ Fees
= Project Cost
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CITY OF IOWA CITY
2) An Operating Pro forma - shows income stream from project, in particular, the stabilized
NOI; critical in determining its value (Developer Spread Sheet)
Gross Rent
+ Tenant Contributions
= Gross Income
Vacancy Contingency
= Effective Gross Rent (EGR)
Operating Expenses
Net Operating income (NOI)
Debt Service #1
Debt Service #2
Cash Flow
3) Determination of Fair Market Value (FMV) of the Completed Project
FMV = Net Operating Income (NOI)
Capitalization Rate
Solving for Fair Market Value -- a property with an annual NOI of $20,000 where the desired
cap rate is 10.5% puts the value at $190,500. The higher the cap rate, the lower the value.
Fair Market Value = NOI $20,000 = $190,500
Cap Rate .105
Conversely, you can solve for a cap rate, by flipping the equation.
Cap. Rate = NOI
FMV or Sale Price (sale price of comps if solving for market cap rate)
Cap expresses "for X flow of income (NOI), at Y price, I expect this rate of return."
4) Determination of maximum loan size by each of two methods, to ensure maximum loan
capacity is taken on by developers; also referred to as debt that can be attracted to the
project.
Key Elements to the financial analysis, p.1
a) Banks require a certain Debt Coverage Ratio (DCR). A common DCR is 1.2 to 1.35
which means for every $1 in debt, you must have $1.20 to $1.35 of net operating
income.
Loan Size By DCR = NOI
Debt Service (D/S)
To solve for a loan size based on DCR, use 2 step process:
1. D/S = NOI
DCR
2. Loan = D/S
"c" (terms of the loan: duration and interest rate)
b) Banks also require a certain Loan to Value (LTV) ratio, which measures a 2"0 way out
of the deal. Common local Loan to Value ratios are .75 - .8, which requires that for every
75 or 80 cents of loan, there must be at least $1 in fair market value.
Loan Size By LTV = Loan Size
Fair Market Value (FMV)
To solve for a loan size based on LTV, use 2 step process:
1. FMV = NOI
Cap Rate required
2. Loan = FMV x LTV
5) Measuring reasonable returns to the developer is a critical part of the financial analysis
process. Here are 2 common ways to measure returns.
Cash on Cash Return
Cash Flow = Money out of a deal = CIF out
Equity Invested Money in the deal EQ (in)
While cash on cash returns in the mid- to high -teens are desirable for privately owned
investments, this level of return is high. A 10% return would be considered more
acceptable for City participation in financing a project. Reducing costs and/or increasing
equity are the primary ways to effect change in this number. Cash on cash measures a
developer's cash flow as a percent of their equity investment.
Internal Rate of Return (IRR)
The all-important IRR measure combines all benefits, of owning real estate, after taxes,
and converts them to a single rate of return. IRR is the discount rate at which the
present value (PV) of a stream of income equals the equity investment. Specifically it
measures the owner's return on equity invested and provides City staff one of the
standards for evaluating whether a developer's return is fair when City financing is
included among funding sources.
Key Elements to the financial analysis, p.2
Again, an IRR in the teens is great for privately owned investments but is too high to
justify City participation unless there are extenuating circumstances. A more modest 7%
- 8% IRR might be considered.
Perhaps a good way to illustrate IRR is to show and iilustration of 2 ten-year equity
investments of $1,000 - each with different annual cash flows, yet each resulting_ in a
10% IRR:
I
Year
Present
Value of
$1.00 @
10%
return
Returns on
Scenario A
PV of
Scenario A
returns
Returns on
Scenario B
PV of
Scenario B
returns
1
$0.9091
$10
$9.09
$500
$454.55
2
$0.8264
20
$16.53
500
$413.20
3
$0,7513
30
$22.54
300
$225.39
4
$0.6830
100
$68.30
300
$204.90
5
$0.6209
200
$124.18
200
$124.18
6
$0.5645
300
$169.35
200
$112.90
7
$0.5132
400
$205.28
250
$128.30
8
$0.4665
600
$279.90
247
$115.23
9
$0.4241
600
$254.46
200
$84.82
10
$0.3855
2,250
$867.38
400
$154.20
$2,017.0
$$2,017.67
Note that that the present value of Scenario A and Scenario B returns are nearly equal
due to the time value of money, even though the returns to the investor are so vastly
different in the initial years.
Key Elements to the financial analysis, p.3
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� MEMORANUUNi
To: Economic Development Committee
From: Wendy Ford, Economic Development CoordinatorZ#ee1_/�
Date: March 26, 2014
Re: Agenda item #5: Consider a request for funding request fro I -JAG
Introduction
JAG (Jobs for America's Graduates) is a national non-profit organization with a successful model for
increasing high school graduation rates, reducing dropout rates, and helping students make a success
transition from high school to continued education and careers.
Background
Iowa's chapter — I -JAG — has requested $10,000 in funding to expand the Iowa City program. The cost of
the average program statewide is $70,000 or $1,666 per student per year. Now in its tat" year, I -JAG is a
dropout prevention and workforce development program that operates sites (classrooms) in high schools.
There are two sites at City High and a fundraising effort underway to get a site started at West High.
(Other Iowa cities with I -JAG programs include Sioux City, Council Bluffs, Perry, Creston, Mason City,
Des Moines, Waterloo, Cedar Rapids, Burlington, Dubuque, Ottumwa, Davenport and Keokuk.)
I -JAG leverages state and local funding to increase the level of private sector investment. Currently,
investors in the Iowa City sites include Principal Financial, Archer Daniels Midland, Wal-Mart Foundation,
United Way, Johnson County Decal Board, Rockwell Collins, MidAmerican Energy Holdings Co.,
Community Foundation of Johnson County, Casey's Charities, Cargill, Hills Bank and Trust, Hy-Vee,
Kenneth K Kinsey Family Foundation, UI Credit Union, MidWestOne Foundation, Toyota of Iowa City,
River Products, Company, Theisen's and Wells Fargo.
The source of funding for I -JAG statewide comes from local schools (27%), grants (16%), State
appropriations (29%) and the private sector (28%). Most of the funds (72%) go to salary and benefits for
the specialist, while student activities, administrative overhead and professional development account for
the rest.
Solution
I-JAG's fundraisers approached staff about funding several months ago. Staff recommended applying for
funding through the United Way Joint Funding application because it seemed a good fit for a public
service organization. Applying through this method benefits the applicant because with one application,
the applicant's request can be considered by Iowa City, Coralville, Johnson County and United Way. No
application was received through United Way Joint Funding.
In more recent discussions with fund raisers, they stressed they feel the application was more suited to
Economic Development funding than Aid to Agencies.
Staff agrees the mission of I -JAG is good, it serves a diverse population and it helps build a work -ready
workforce. If the program was geared to the specific training for a specific employer or job, then we would
agree this is a fit for Economic Development. However, the outcomes of the organization are more
general in nature and thus, classified more appropriately as a public service, making it more suited for an
application to Aid to Agencies funding through the United Way Joint Funding portal and part of the annual
budgeting process.
Please let us know how you would like us to proceed.
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CITY OF IOWA CITY
MEMORANDUM[
Date: March 24, 2014
To: Economic Development Committee `
From: Wendy Ford, Economic Development Coordinator Lrc_
Re: Agenda Item #6: Economic Development Assistance fund b lance
Following is a report on the balances in three budget lines closely associated with
economic development -related spending.
The Aid to Agencies and Community Development lines are set each year at budget
time with the budgeted spending planned in advance.
The Economic Development Assistance line is funded with $100,000 each year and
may be used for appropriate Economic Development projects that present themselves
during the year. The Economic Development Committee typically reviews and makes
recommendations to the Council on projects they wish to fund with this line, however,
the City Manager does have spending authority in this line, up to $50,000. In all cases,
the use of these funds must align directly with the City Council's adopted Economic
Development policies and strategies. Any spending authorized by the City Manager
must be reported at the next Economic Development Committee meeting.
In this report we are showing the status of the current year's spending and the known
projected spending for the next three years.
We will provide a similar report at future meetings.
Economic Development Funds
updated March 28, 2014
2014 YTD
2015
Projected
2016
Projected
2017
Projected
Funding Source
Budget
Actual
448010 Aid -to -agencies
34,167.29
i Riverside Theatre
Community Corrections
25,000.00
9,167.29
20 Community Deveiopment AesIstance
360,304.00 177,289.02
ICAD
Englert Civic Theatre—
50,000.00
la City/Coralville CVB (hotel/motel taxes)
67,289.02
Iowa City UNESCO
60,000.00
-
Film Scene
35,000.00
25,000.00
15,000.00
448070 Economic Development Assistance
100,000.00 72,642.26
FY 13 Carryover for Building Change projects
$(92,643.00)
Busy Coworking
1,551.34
Chait Development (Building Change program)
8,028.00
Kirkwood Community College
10,000.00
Little Donkeys (Building Change, Pancheros)
_
19,857.00
EntreFest sponsorship (via UNI)
2,500.00
ENCUMBERED
Yacht club (Building Change)
12,930.00
ENCUMBERED
Grossix Building (Building Change)
37,729.00
ENCUMBERED
Busy Coworking, remaining funding to request 4,089.82
_
4,089.92
ENCUMBERED
MetaCommunications buildout
58,000.00
ENCUMBERED
MetaCommunications parking agreement
10,600.00
31,680.00
31,680.00
31,680.00
REMAINING FY14 FUNDS:
27,357.74
REQUEST
Mission Creek
5,000.00