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HomeMy WebLinkAbout2015-03-23 CorrespondencerCITY -- CITY OF 1IOWA3e(1) �% wa -0 1 -T.4 MEMORANDUM Date: March 17, 2015 To: Tom Markus, City Manager From: Chris O'Brien, Director of Transportation Services Re: Transit Funding Application Introduction: At the May 5, 2015 City Council meeting, consideration will be given to a resolution authorizing the filing of an application with Iowa DOT for FY2016 state transit assistance and FTA funding. History/background: This is an annual application filed with Iowa DOT listing capital and operating expenses that we wish to see funded by IDOT and FTA. The projects contained in the application have been programmed by Iowa City Transit for Federal Transit Administration (FTA) Section 5307, 5310 and/or 5339 funds in FY2016. The projects will be included in the FY2016 Iowa DOT Consolidated Transit Funding Application that MPOJC is completing and in the FY2016-2019 MPOJC Transportation Improvement Program (TIP). Iowa City Transit may not seek funding for all of the projects; however, each project needs to be listed in order to be eligible for funding. Discussion of Solution: Following is a summary of the funds being applied for: State Transit Assistance Program: approximately $501,799 — These are formula funds awarded to the MPO and then distributed between Iowa City Transit, Coralville Transit and the University of Iowa — Cambus. Federal operating assistance for transit: $1,482,500 — These are funds awarded from FTA to provide operational assistance to the transit agency. From federal funds for transit in non -urbanized areas and/or for transit serving primarily elderly persons and person with disabilities: $118,550 — These funds are awarded to Iowa City and committed to para -transit services that are contracted through a 28E Agreement with Johnson County SEATS State-wide federal capital assistance for transit: $17,845,950 — These funds include all of the capital projects that Iowa City Transit wishes to see funded. This sum includes replacement and relocation of the transit facility and the replacement of several buses. A local match of 15% - 20% is commonly required for the award of these funds. Financial Impact: The most substantial financial impact will result from the local match required of the capital projects, especially considering the magnitude of the transit facility replacement and relocation project. This project is estimated at $20 million with an estimated local match of $4 million. The Transportation Services Department has a reserve account, currently just over $3 million, to pay for the local match on the remaining capital projects. 3f(1) Marian Karr From: Garry Klein <garryklein@gmail.com> Sent: Monday, March 09, 2015 5:06 PM To: Council Cc: Karen Howard Subject: River Crossing Park Dear Mayor Hayek and Council Members Botchway, Dickens, Dobyns, Mims, Payne, and Throgmorton, Though I am unable to attend tonight's meeting, I did want to comment on the Control Building at the old North Treatment plant. Engineers may or may not agree that the building is salvageable for the purpose of creating a community center in that location, but it does not mean that the materials themselves may not be, at worst, repurposed and converted into amenities for the public's use--e.g., paths, barbecue pits, and out buildings made from repurposed WPA-era bricks. Landscaping amenities, gazebos, a performance stage, even statuary may be made from reusing the iron pipe, reusing copper wiring. At the very least, acknowledging the history that created a waste treatment plant that has been converted to a community treasure would be a step in a better direction of remembering our past and building our future. Reclaiming the riverfront would be a great step in creating a more liveable community and certainly would be in line with a vibrant South of Burlington/River Crossing area. we are fortunate to live in a creative and invested community. I hope that you will work to find a solution to create the most benefit to this area. Done right, this brown field can become a important community asset for years to come. Best regards, Garry Klein 628 2nd Ave. Iowa City, IA 52245 319-354-2600 Marian Karr From: Timothy Tack <tackfu700@hotmail.com> Sent: Thursday, March 12, 2015 12:54 PM To: Council Subject: Thumbs down to PATV As long as an incompetent administrator like Josh Goding is running the show? The station is a waste of tax payer funds. Vote no. Do not renew the contract with city. Sincerely, Timothy Tack Date: March 18, 2015 To: City Council Iowa Cin, Historic Preservation Commission City I lall, 490 F \Vashingron Strcct, lowa City. L\. 52240 From: Ginalie Swaim, Chair, Historic Preservation Commission Re: Unitarian Universalist Church at 10 South Gilbert We, the eleven members of the Iowa City Historic Preservation Commission, are deeply concerned about the fate of the Unitarian Universalist Church at 10 South Gilbert. We're aware of the majority decision of the Unitarian Universalist Society to find a different location. And we understand that demolition—either by the church or a developer—is under consideration. This commission believes, however, that the building is a significant historic structure and an extremely valuable asset to the Iowa City community. We further believe that the City can play an important role in saving this building. Powerful tools that the City could use in this situation are transfer of development rights and parking incentives. The lot on which the church stands measures two-tenths of an acre, or 8,800 square feet, which is quite small for development. Thus, even if the church building were demolished, there would still be very little space for a new building and meeting parking requirements. This would limit a developer's options. Combining the property and part or all of the adjacent City parking lot, however, could result in a more substantial development that would also mean preserving and reusing the building. In essence, saving the building means saving the bargaining chip of transfer rights. This Commission strongly urges the City to convey to the Unitarian Universalist Society and to developers that preserving the building could hold potential economic benefits in the form of zoning incentives for both seller and buyer. We think it should be made clear that if the building is razed, the City will not offer any zoning or financial bonuses to potential or actual developers. Another scenario to consider is for the City to purchase the property and building. As was demonstrated in recent public hearings, this community is passionate and vocal about saving and reusing historic buildings. We anticipate a similar level of public outcry if the church faces demolition. We're raising this matter now in the hope that there will be an open dialogue that will lead to such a solution. It is critical to find a win-win solution. Therefore, this Commission calls upon the City to work with the Unitarian Universalist Society and members of the community to explore ways to save this historic building and to find new uses for it—all in the best interests of Iowa City. Thank you. Respectfully submitted, Thomas Agran, Kent Ackerson, Esther Baker, Gosia Clore, Kate Corcoran, Frank Durham, Andrew Litton, Pamela Michaud, Ben Sandell, Ginalie Swaim, and Frank Wagner. cc: Tom Markus cc: Vicki Siefers, President, Unitarian Universalist Society 03-23-15 3f(3) r 03-23-15 CITY OF IOWA CITY 3f(4) 6d, Rqk' MEMORANDUM Date: March 17, 2015 To: Tom Markus, City Manager From: Jason Havel, City Engineer -rk''4 Re: Competitive Quotation Results 2015 Downtown Sidewalk Repair Competitive quotations for the 2015 Downtown Sidewalk Repair Project were opened on March 6, 2015 and the following quotes were received: JDM Concrete, LLC Kalona, IA $ 21,518.75 Feldman Concrete Dyersville, IA $ 35,225.00 Engineer's Estimate $ 31,500.00 Public Works and Engineering recommended and the City Manager awarded the contract to JDM Concrete, LLC of Kalona, Iowa. The project will be funded with General Obligation bond proceeds. 2015 Clearing and Grubbing Competitive quotations for the 2015 Clearing and Grubbing Project were opened on March 6, 2015 and the following quotes were received: Neuzil & Sons Oxford, IA $ 32,719.40 CAJ Enterprises West Branch, IA $ 35,067.23 Bockenstedt Excavating Iowa City, IA $ 35,325.31 Engineer's Estimate $ 26,500.00 Public Works and Engineering recommended and the City Manager awarded the contract to Neuzil & Sons of Oxford, Iowa. The project includes clearing and grubbing work at various sites where infrastructure projects will be constructed in 2015. Funding will be from the respective project budgets. r �`.®i CITY OF IOWA CITY 12 MEMORANDUM To: Tom Markus, City Manager From: Jeff Davidson, Economic Development Administrator Wendy Ford, Economic Development Coordinator Date: March 18, 2015 Re: Leepfrog Technologies proposed expansion Leepfrog Technologies Inc. has been a software developer for government and higher education since 1994. Their original office was located on ACT Circle in Iowa City. In 2013 they announced plans to expand from approximately 27 employees to 70. City of Iowa City staff worked with them extensively to find suitable office space in Iowa City. We presented at least 8 options meeting their location requirements. Because of timing constraints, Leepfrog opted to locate in a recently vacated building in the University of Iowa Research Park on Oakdale Boulevard in Coralville. The Coralville location was characterized to us by Leepfrog as a temporary location for two years. They expressed a desire to ultimately relocate back to Iowa City. We indicated we were available to assist with their future location decisions, and expressed a desire to have them back in Iowa City. Later in 2013 Leepfrog contacted ICAD to begin the search for property for a new building. We worked with ICAD to submit several suitable sites in Iowa City. Initial interest focused on properties in the vicinity of North Dodge Street and 1-80. Negotiations progressed as far as discussing a specific concept building plan for a preferred site, but this ultimately did not go forward, and the property option was allowed to expire. Leepfrog subsequently decided to enter into an arrangement with a third party site selection/construction advisory consultant. From this point forward communication between Leepfrog, ICAD, and the City of Iowa City was limited. In 2012 State TIF law reform was implemented which limits the ability of an Iowa municipality to recruit a business using TIF incentives from another Iowa municipality without a letter of approval from the city of origin. There have also been discussions of a local communications protocol between Iowa City, Coralville and North Liberty governing economic development activities, but this has not been ratified. We have recently been informed by ICAD that Leepfrog has negotiated a lease agreement for one floor of a new building to be constructed on the University of Iowa Research Park in Coralville. A letter has also been received from the City of Coralville indicating that Leepfrog has submitted a request for financial assistance from the State of Iowa and the City of Coralville. Details of the requested financial assistance have not been provided. The City of Coralville has asked us to provide a letter indicating we have no objection to the expansion of Leepfrog in Coralville. They have also asked us to let them know if we have any questions or need further information. You sent an email to the City of Coralville requesting further information. This email is attached for your reference. Also attached are other pertinent documents pertaining to this, issue, and correspondence related to a similar issue and the ConnectFive Company TIV10SK3 We are looking for direction from the City Council regarding the requested letter from the City of Coralville indicating we have no objection to Leepfrog's expansion in Coralville. Please be prepared at your March 23 City Council meeting to provide direction to staff. March 17, 2015 Mr. Tom Markus City Manager City of Iowa City 410 E. Washington St. Iowa City, IA 52240 RE: Leepfrog Technologies, Inc. Dear Tom: I am writing to you in reference to Leepfrog Technologies, Inc. Leepfrog Technologies currently operates a facility in Iowa City on ACT Circle and a facility in Coralville on Oakdale Blvd. Leepfrog, with the assistance of ICAD, conducted a process of looking for additional space for their expansion and have entered into a letter of intent with a developer to build a new facility on Oakdale Blvd in Coralville. I have attached an outline from Mark Nolte, ICAD President, outlining the process the company has went through. The company has indicated to us that they intend to keep the facility in Iowa City as an expanded data center for the company. Leepfrog has submitted a request for assistance from the State of Iowa and the City of Coralville. The State of Iowa has asked for a letter from the City of Iowa City indicating you have no objection to the Leepfrog expansion in Coralville. Please let me know if you have any questions or need further information. Sincerely, *Kelly J. �yworth City Administrator Enclosure CC: Mark Nolte City Administration PO Box 5127 1512 7th Street Coralville, Iowa 52241.0127 319-246-1700 Fax: 319-246-1694 Timeline of LeepFrog Technologies Space Planning Leepfrog Technologies, a software company serving higher education, has been headquartered at 2105 ACT Circle in Iowa City since its founding in the early 90's. As the company expanded they sought additional office space in the area to accommodate their growth. In 2013 they moved some of their staff into an available office property at 2300 Oakdale Blvd with the mindset that this would be a temporary location until they could find a more longterm solution. ICAD communicated this move to the City of Iowa City and there was no financial incentive at the city or state level offered or provided. In October of 2013 the company contacted ICAD Group about finding space for a new building. ICAD sent project information to the developers, construction companies, real estate professionals and banks who are investors in ICAD to gauge interest and identify properties. City of Iowa City staff was included in this request and submitted several Iowa City sites. Initial interest focused on the Larson Farms property near ACT, this land was under contract at the time to Liberty Development and meetings were had to discuss site layout and City of Iowa City staff were engaged. Leepfrog decided at this time to enter into an agreement with Proximity, a Des Moines based construction advisory consultant to take the lead on site selection and negotiations with builders. Communication from this point forward with ICAD was very limited. By fall of 2014 Liberty Growth had offered lease terms for a build to lease property to the company via Proximity but were informed other sites were being considered. Liberty Growth, having not secured a tenant, let their option expire on this land. ICAD continued to share ideas on sites and buildings directly with the company leaders. Through Proximity's guidance, a lease agreement has been negotiated with Build to Suit to occupy a floor of a new building to be constructed on the UI Research Park. Per the company, an employee survey was conducted which showed strong support for this location as the most accessible option for their staff. Leepfrog will maintain ownership of its Iowa City facility on ACT Circle as its main data center, but will move most of the remaining staff from this building to the new office space to put their team under one roof. At this time, the company would like to apply for state assistance to add additional jobs and has made an application to the Iowa Economic Development Authority. Build to Suit has worked independently with the City of Coralville on a TIF application for the property. Before the company can apply for state assistance, it would need the City of Iowa City to provide a letter to IEDA Director Durham indicating does not oppose the company leasing space in Coralville. ICAD believes every effort was made to help the company identify all existing buildings and sites in Iowa City. Ultimately however, the company's decision at this point is to pursue this new building in Coralville. Jeff Davidson From: Tom Markus Sent: Tuesday, March 17, 2015 9:21 AM To: Mark Nolte (mnolte@icadgroup.com) Cc: Jeff Davidson; Wendy Ford; Eleanor M. Dilkes; Sue Dulek; Sara Greenwood Hektoen; Doug Boothroy Subject: Leapfrog It seems to me that barring a formal process to review an incentive from another community which results in the move of a company from one municipality to another we need to establish a procedure on the fly so to speak. The state law speaks of an agreement between the two municipalities. It would seem that a request from the company and the city of Coralville explaining the request and the history would be the appropriate starting point. Iowa City staff would review the request and make a recommendation to council. If the Iowa City Council is inclined to approve they would then direct staff to prepare the appropriate agreement between the two cities and the corresponding legislation approving the agreement. Jeff Davidson From: Tom Markus Sent: Wednesday, March 18, 2015 10:58 AM To: Kelly Hayworth (khayworth@ci.coralville.ia.us) Cc: Jeff Davidson; Wendy Ford; Eleanor M. Dilkes; Sue Dulek; Sara Greenwood Hektoen; Geoff Fruin; Marian Karr; Mark Nolte (mnolte@icadgroup.com) Subject: Leepfrog Technologies, Inc. Kelly: In response to your email/letter, I do have some additional requests for information. As you know, Iowa City previously sent a letter to Debbi V. Durham on behalf of ConnectFive when they sought financial assistance through the EDA's High Quality Jobs Program. In your letter re: Leepfrog, you note that Leepfrog has requested funding assistance from both the State of Iowa and the City of Coralville. Funding assistance from Coralville may also require an agreement under Section 403.19 of the state code. The Timeline provided by ICAD enclosed with your letter has a significant gap of time which leaves out critical information that we need to know in order to make an informed decision. In order to determine if those state code provisions apply I would ask you to provide the following: 1. Applications by Leepfrog for assistance from the state and the city. 2. Correspondence from Debbi V. Durham requesting a letter from Iowa City indicating that we have no objection to the Leepfrog relocation in Coralville. 3. Copy of the TIF agreement between Coralville and Build to Suit. 4. Lease agreement between Build to Suit and Leepfrog. 5. How many employees will remain at the Iowa City location? Until we know this information we cannot properly analyze the extent to which state law applies to this request and whether the City of Iowa City would object to your requests. While we are happy for Leepfrog's success, we need to make sure our city is doing everything we can do to retain our businesses. We are still interested in having Leepfrog remain in Iowa City. The information that led to Leepfrog's decision may help us shape our future policies to be able retain our businesses. I can't help but think the regular communication that was to be established through the Communications Protocol agreement would have gone a long way to improving the relationship between our communities and provided a more transparent playing field for economic development, especially for businesses already existing in our communities. Tom CITY OF IOWA CITY3dI9� Wl MEMORANDUM Date: February 19, 2015 To: Tom Markus, City Manager From: Alec Bramel, City Manager Intern Re: Establishing a Communication Protocol for Economic Development Activity in the Iowa City Area The attached agreement establishes a procedure to facilitate positive interaction between the communities in the Iowa City area in promoting economic development. It is important that municipalities work collaboratively and transparently in economic development activities and do not pursue projects that hurt overall growth in the region. The agreement includes a communication plan for cities to follow in the event that a business expresses interest in relocating from one community to another. Communities in the agreement or their third party representatives will not actively pursue the relocation of a business from one city to another without the approval of the city in which the business currently operates. The Iowa City Area Development Group Board of Directors Iowa City voted unanimously to support the communication protocol, noting that, "For our area to be successful, we believe the various communities all need to be working together to compete for the best jobs and investment." While Iowa City seeks to build regional strength as well as its own, it is understood that businesses and entrepreneurial ventures seek locations based on a variety of factors. The agreement does not preclude business expansion or migration, but sets forth a process to enhance communication and promote equity between our communities in these situations. Staff recommends approving the resolution authorizing and directing the Mayor to sign the attached agreement. 'Seto) 0 "� Iowa City Area Q Development Group Extraordinary Opportunities in unexpected places. To: The Honorable Mayors Hayek, Lundell and Nielsen and the City Councils of Iowa City, Coralville and North Liberty Re: Support for Establishing an Inter -Jurisdictional Communication Protocol for Economic Development Dear Mayors and City Councilors, On behalf of the board of directors of the Iowa City Area Development Group, we express our support for the adoption of the Communication Protocol for Economic Development among our respective communities. We understand that a draft of the document has been developed by our respective city administrators which outlines a process by which a clear standard for engagement and communication will be agreed to regarding economic development projects. For our area to be successful, we believe the various communities all need to be working together to compete for the best jobs and investment. Competition among our communities can become a detriment to this goal and create situations where our communities are pitted against each other. This agreement does not limit a community from assisting a company during a location search, but spells out a transparent process which helps the host community leadership better understand and react when a company may wish to move. Signing this agreement will enhance the trust and cooperation between our communities and pave the way for more collaborative approaches to problem solving and planning. Working together is the best way to benefit the residents of all communities and our area as a whole. We urge you to support this vital step towards a strong local economy and approve the signing of this agreement. It is our hope that your leadership will encourage the other communities and counties in Iowa's Creative Corridor to follow in your footsteps and sign on to this agreement as well. If we can provide any additional information or clarification of our position publicly, please let us know how we might best serve your needs. Sincerely, Tom Goedken, Board Chair Mark Nolte, President 316 E Court Street, Iowa City, IA 52240 319.354.3939 3 C4- (9) Prepared by: Alec Bramel City Manager Intern, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5010 RESOLUTION NO. 15-43 A RESOLUTION ESTABLISHING A COMMUNICATION PROTOCOL FOR ECONOMIC DEVELOPMENT ACTIVITY IN THE THREE JURISDICTIONS OF IOWA CITY, CORALVILLE, AND NORTH LIBERTY WHEREAS, Iowa City is committed to encouraging economic development within its own jurisdiction and throughout the region; and, WHEREAS, Iowa City seeks to highlight the region's strengths and focus on maintaining an attractive environment for business growth and expansion; and, WHEREAS, it is in the best interest of Iowa City and neighboring jurisdictions to collaborate in order to mitigate actions that may hurt economic development in a neighboring municipality; and, WHEREAS, actively recruiting businesses from a neighboring jurisdiction hurts economic growth in the region as a whole; and, WHEREAS, inevitably, for various reasons, businesses may seek to migrate from one jurisdiction to another; and, WHEREAS, in the event a business does wish to relocate from one participating jurisdiction to another, engaging in transparent communications promotes long term regional growth; and, WHEREAS, the Board of Directors of the Iowa City Area Development Group have unanimously endorsed the Corridor communication protocol. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA THAT: 1. The attached Agreement Establishing a Communication Protocol for Economic Development Activity in the Three Jurisdictions of Iowa City, Coralville, and North Liberty is approved; 2. The Mayor is authorized and directed to sign the attached agreement; 3. The agreement shall be forwarded to the Cities of Coralville and North Liberty for approval. Passed and approved this 23rd day of February -,20 15 ATTEST: CITY C EERK i - oma' I►. r ved by 2 a D ^ City Attorney's Office �"�� Resolution No. 15-43 Page 2 It was moved by Mims and seconded by Dickens the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Champion Dickens Dobyns Hayek Mims Payne Throgmorton 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. 1 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. 2 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. 5. 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. CITY OF IOWA CITY Dated this 23rd day of February 20 15 . By: A0!5� MAYOR ATTEST: CITftLERK CITY OF CORALVILLE Dated this day of , 20 By: MAYOR ATTEST: CITY CLERK CITY OF NORTH LIBERTY Dated this day of . 20 By: MAYOR ATTEST: CITY CLERK 4 December 16, 2013 Debbi V. Durham, Director Iowa Economic Development Authority 200 East Grand Des Moines, IA 50309 Re: Relocation of ConnectFive Dear Director Durham: IN I -•a.at� CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 3S6 -S000 (319) 3S6 -S009 FAX www.lcgov.org The City of Iowa City has been notified by ConnectFive of its intentions to relocate from leased space at 1210 Highway 6 West, Suite 400 in Iowa City to leased space located in Coralville, Iowa. Company representatives indicate they desire to lease 5000-7000 square feet of office space on a single continuous floor plate. Company representatives indicated they evaluated several buildings within Iowa City, but were unable to find a location that fits within their desired office parameters. The company has indicated it may make an application to the Iowa Economic Development Authority High Quality Jobs program for financial assistance, and has requested the City of Iowa City to provide a letter that it will not object to such application. I hereby state that we do not object to such an application. While disappointed that the company was unable to find a suitable location within Iowa City, we hope to be part of this growing company's future plans. The City of Coralville has indicated they will provide a letter stating they will not oppose ConnectFive relocating back to Iowa City in the future. Sincerely, Thomas M. Markus City Manager cc: Kelly Hayworth, City Manager, City of Coralville CORALVILLE December 12, 2013 Mr. Tom Markus City Manager City of Iowa City 410 E. Washington St. Iowa City, Iowa 52240 RE: Connect Five Dear Tom: I am following up on our conversation about Connect Five. Connect Five has expressed a desire to lease space in the University of Iowa Research Park and has sought State of Iowa Assistance for their relocation. The City of Coralville will not be providing any assistance for the move to the new location. The City of Coralville does not have an issue with Connect Five moving back to Iowa City in the future if they should decide to do so. Sincerely, wo City Administrator cc Mark Nolte Jim Fausett City Administration 1512 r Street Coralville, Iowa 52241.1708 Ph: 319.248.1700 Fax: 319.248.1894 Connect Usar Experience Strategy Design Usability Metrics To: Tom Markus, City Manager and City Council of Iowa City From: Sean McKay, President, Connect Five Mr. Markus and Members of the City Council, For the past several months we have been engaged in a diligent search for office space to move our quickly expanding software business. We have worked with City of Iowa City staff, ICAD Group, The Iowa City Downtown District and other real estate professionals to tour and evalu- ate a variety of space options. Unfortunately we were not able to identify an available office space that meet our needs of between 5,000-7,000 square feet with an open floor plan at a rental rate that our young company could cash flow within the City of Iowa City. We have subse- quently been able to identify a space that met all of our needs on the University of Iowa Research Park and have negotiated preliminary lease terms. To accommodate this move and help assist our company grow the Iowa Economic Development Authority is considering providing financial assistance to our company at their board meeting on December 20th. Pursuant to Iowa Code, we are unable to qualify for this assistance without submitting to the state a written notice that you are not in objection to this move. We would like to provide assurance that at no point were any offers of financial assistance by the City of Coralville made to encourage this move. This relocation decision is not based on any determining factor other than the availability of suitable office space for our company needs. We certainly appreciate all of the assistance provided by city staff. We felt supported and encouraged throughout the process. I hope that you can understand the situation we are in and the need to do what is best for our company. To this end, we respectfully request written notifi- cation indicating you are not in objection to our move submitted in a letter to Debi Durham, Director of the Iowa Economic Development Authority. t�NK- I l 6 •�- -.& CITY OF IOWA CITY MEMORANDUM Date: December 12, 2013 To: Tom Markus, City Manager From: Jeff Davidson, Planning and Community Development Director Re: ConnectFive Relocation Letter, December 17, 2013 Council Meeting Introduction ConnectFive, a usability, strategy and design firm based in Iowa City at 1210 Hwy 6 W., Suite 400 in Iowa City has been growing and is seeking bigger office space. History/Background Economic Development staff from the City of Iowa City has been working with ConnectFive to find office space in Iowa City. Staff has been working with the firm for the past 6 months to find a space of 5,000-7,000 square feet that could be built out to suit their needs. However, none of the multiple locations viewed have been suitable. Discussion of Solutions ConnectFive has determined there is a space in Coralville that will meet their specifications. The City of Coralville is not providing financial incentives for the relocation. However, the owner of the building into which the firm will be moving is providing incentives for the move. While ConnectFive may be relocating to Coralville, they are a growing company and may in the future relocate back to Iowa City. Iowa City has asked the City of Coralville to approve any future relocation back to Iowa City. ConnectFive will be seeking financial assistance from the Iowa Economic Development Authority (IEDA) High Quality Jobs Program to expand their operations. If a firm relocates into another city while seeking assistance, IEDA requires a letter from the city in which the firm is currently based stating they approve of the relocation. Financial Impact While there is no direct financial cost to the city to write the approval letter, there is potential lost income to the building owner because the firm is moving out of Iowa City. In addition, ConnectFive employees would have been spending money in Iowa City if they would have relocated to another Iowa City location. Recommendation Staff recommends the City Council pass a resolution authorizing the City Manager to submit a letter to the Iowa Economic Development Authority approving the relocation of ConnectFive to Coralville. The City of Coralville has indicated they will provide a letter stating they will not oppose ConnectFive coming back to Iowa City in the future. Construction of office space in Iowa City that is suitable for these types of startup businesses should be encouraged. Cc: Steve Long, Community Development Coordinator Wendy Ford, Economic Development Coordinator Prepared by: Jeff Davidson, Planning and Community Development Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230 RESOLUTION NO. 13-353 RESOLUTION FOR SUBMITTAL OF A LETTER TO THE IOWA ECONOMIC DEVELOPMENT AUTHORITY APPROVING THE RELOCATION OF CONNECTFIVE TO CORALVILLE, IOWA WHEREAS, ConnectFive is a usability, strategy and design firm based in Iowa City at 1210 Hwy 6 W, Suite 400 Iowa City, Iowa; and WHEREAS, ConnectFive has applied for financial assistance from the High Quality Jobs Program at the Iowa Economic Development Authority (IEDA); and WHEREAS, as explained in the letter attached hereto, ConnectFive has decided to move its operations to the University of Iowa Research Park in Coralville, Iowa; and WHEREAS, in order to qualify for assistance from the IEDA ConnectFive must provide a letter from the City of Iowa City, as the city in which ConnectFive is currently located, stating that Iowa City does not object to the move from Iowa City to Coralville; and WHEREAS, the City of Iowa City wishes to help ConnectFive find suitable office space and assist them in qualifying for financial assistance from the IEDA; and WHEREAS, ConnectFive may in the future consider moving back to Iowa City and the City of Coralville has agreed to provide a letter to the City of Iowa City stating that Coralville will not object to a move by ConnectFive back to Iowa City in the future. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The City of Iowa City does not object to the relocation of ConnectFive to Coralville as described in the attached letter. 2. Upon receipt of a letter from the City of Coralville stating that Coralville will approve any future ConnectFive relocation back to Iowa City, the City Manager of Iowa City is hereby authorized to sign a letter approving the relocation of ConnectFive operations to the University of Iowa Research Park in Coralville, Iowa. Passed and approved this 17th day of December, 2013. MAYOR ATTEST:CIL f J 3C. ►I CITY -CLERK City Attorney's Office /z- /b ,/g !Q -, Marian Karr From: Tom Markus Sent: Monday, March 23, 2015 2:56 PM To: Marian Karr; 'Matthew J. Hayek (mhayek@hhbmlaw.com)' Cc: Jeff Davidson; Eleanor M. Dilkes Subject: RE: Leapfrog Technologies Please share this email with the council for tonight's meeting. From: Tom Markus Sent: Monday, March 23, 2015 11:43 AM To: Marian Karr; Matthew J. Hayek (mhayek@hhbmlaw.com) Cc: Jeff Davidson; Eleanor M. Dilkes Subject: RE: Leapfrog Technologies No this matter will likely be continued to the next meeting pending response to the questions posed to Coralville. The answers to which are needed to formulate a recommendation to council. From: Marian Karr Sent: Monday, March 23, 2015 11:38 AM To: Tom Markus Cc: Jeff Davidson Subject: Leapfrog Technologies Will we have a letter prepared for the Mayor's signature tonight on this? Or are we waiting until after discussion to draft? .tics .ryc. Nau, .tee City Clerk I City of Iowa City P. 319-356-5041 F. 319-356-5497 Population 67,862 Proud Home of the Iowa Hawkeyes!