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Home My WebLink About2015-06-08 AgendaSubject to change as finalized by the City Clerk. For a final official copy, contact the City Clerk's Office 356-5040. Iowa City,,, lot �o City Council Agenda Special Formal CITY OF IOWA CITY June 8, 2015 - 7:00 p.m. City Hall — Harvat Hall 410 E. Washington Street rAA) www.icaov.ora ITEM 1. CALL TO ORDER. ITEM 1 a Roll Call ITEM 2. DEVELOPMENT AGREEMENT [CHAUNCEY] - APPROVING AN AGREEMENT FOR PRIVATE REDEVELOPMENT, INCLUDING THE TRANSFER OF LAND, BY AND BETWEEN THE CITY OF IOWA CITY, IOWA, AND THE CHAUNCEY, L.L.C. 15-193 Comment: This Resolution approves a developer's agreement for the redevelopment of the northeast corner of the College and Gilbert Street intersection in downtown Iowa City, located within the City -University Urban Renewal Area. The agreement contemplates that the Developer will invest $49,000,000 to construct a 15 -story mixed use building, which will include, but not be limited to, Class A office space, a hotel, a bowling alley, two movie theatres, residential condominiums, and upgrades to the Chauncey Swan Park, together with related site improvements, all designed and constructed to at least LEED Silver standards. Once the construction is complete, the building will have a $30,128,234 minimum property tax assessment. In exchange for construction of this project, the agreement contemplates that the City will convey land to the Developer for the appraised value of $1,870,000, as well as any easement rights necessary to accommodate the project at the appraised value. The agreement also contemplates that the City will make a $14,187,250 economic development construction grant, paid through the use of tax increment financing and reinvestment of the proceeds from the sale of the property and easement rights. The City also intends to acquire five one -bedroom condominium units from the Developer for $1,000,000 once the project is complete, which the City will own and maintain for affordable housing. The Economic Development Committee considered this application and voted to recommend approval to the City Council at its meeting on July 10, 2014. City Staff has reviewed the application and proposed Developer's Agreement and recommends approval to the City Council. a. PUBLIC HEARING [Staff presentations regarding Development Agreement; Acquisition of housing and use; TIF and Financial Analysis; and Financing of Debt] Action: eL �.0 b. CON IDER ARESO UTION Action: Mmmffl - = - I M 14^0 CITY OF IOWA CIT June 7, 2015 410 East Washington Stn Iowa City. Iowa 52240- (319) 356-5000 (319) 356-5009 FAX www.icgov.org LATE HANDOUTS Information submitted between distribution of packet on Thursday and close of businE Friday. Special meeting of 6/8: ITEM 2 DEVELOPMENT AGREEMENT [CHAUNCEY] — ITEM 3 URBAN RENEWAL TAX INCREMENT REVENUE BONDS [CHAUNCEY] — See staff memo and additional correspondence Memo - Financing Structure for Chauncey Building (added 6/7/15) ITEM 4 NORTH EAST CORNER OF COLLEGE STREET AND GILBERT STREET [CHAUNCEY] — Showing Second Consideration ITEM 5 VACATION OF BLOCK 43 ALLEY [CHAUNCEY] — Showing Second Consideration INFORMATION PACKET of 6/4: Memorandum from City Clerk: KXIC Schedule Information submitted between distribution of packet on Thursday nd close of business on Friday. Special meeting of 6/8: ITEM 2 DEVELOPMENT AGR EMENT [C A CEY] — ITEM 3 URBAN RENEWAL T INCRE REVENUE BONDS [CHAUNCEY] — See staff memo and ad litiona c spondence ITEM 4 NORTH EAST CORNER OLLEGE STREET AND GILBERT STREET [CHAUNCEY] - Showing S Gond Consideration ITEM 5 VACATION OF BLO Consideration INFORMATION PACK Memorandum from Cit) bf 6/4: erk: KXIC Sche showing Second I k i �t6a - ' . ggv,)L / CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356-5000 (319) 356-5009 FAX LATE HANDOUTS www.lc.org Information submitted between distribution of packet on Thursday nd close of business on Friday. Special meeting of 6/8: ITEM 2 DEVELOPMENT AGR EMENT [C A CEY] — ITEM 3 URBAN RENEWAL T INCRE REVENUE BONDS [CHAUNCEY] — See staff memo and ad litiona c spondence ITEM 4 NORTH EAST CORNER OLLEGE STREET AND GILBERT STREET [CHAUNCEY] - Showing S Gond Consideration ITEM 5 VACATION OF BLO Consideration INFORMATION PACK Memorandum from Cit) bf 6/4: erk: KXIC Sche showing Second June 8, 2015 City of Iowa City Page 2 ITEM 3. URBAN RENEWAL TAX INCREMENT REVENUE BONDS [CHAUNCEY] — INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $14,200,000 URBAN RENEWAL TAX INCREMENT REVENUE BONDS, SERIES 2015B. Comment: Public comment will be received regarding the issuance of up to $14,200,000 Tax Increment Financing (TIF) Revenue Bonds for an economic development grant for the Chauncey. PUBLIC HEARING Action: b. CONSIDER A Action: 'dee'l� j� ITEM 4. NORTH EAST CORNER OF COLLEGE STREET AN16 GILBERT STREET [CHAUNCEY] — REZONING APPROXIMATELY 0.62 ACRES OF PROPERTY LOCATED AT THE NORTHEAST CORNER OF COLLEGE STREET AND GILBERT STREET, FROM PUBLIC (P-1) AND CENTRAL BUSINESS SUPPORT (CB -5) TO CENTRAL BUSINESS DISTRICT (CB -10). (REZ15-00006) (PASS AND ADOPT) Comment: At its April 16 meeting, by a vote of 3-3 (Freerks, Martin and Theobald voting in the affirmative; Swygard absent), the Planning and Zoning Commission failed to recommend approval of the proposed rezoning. Approval with staff - recommended conditions would allow the development of a mixed-use building up to 15 stories in height, building height step -backs at the third and fifth floors, a minimum of two floors of Class A Office space and all required residential parking being provided on-site. Correspondence include din Council packet. Correspondence included in Council packet. Action: -3106� 1 /3A 1 u ITEM 5. VACATION OF BLOCK 43 ALLEY [CHAUNCEY] — VACATING PORTIONS OF PUBLIC ALLEY RIGHT-OF-WAY LOCATED IN BLOCK 43, CITY OF IOWA CITY (VAC15-00001) (PASS AND ADOPT) Comment: As part of the redevelopment of the Northeast corner of College St / Gilbert St, it will be necessary to vacate the western 160 feet of the alley right of way in Block 43. The area occupied by alley right of way would remain in City ownership unless and until it is conveyed as a part of conveyance of the property at the Northeast corner of College Street / Gilbert St. At its May 21 meeting, by a vote of 6- 0 (Eastham absent), the Planning and Zoning Commission recommended approval. Action: M.4;% ITEM 6. ADJOURN. `°s Oaf°