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HomeMy WebLinkAbout2007-11-21 Info Packet I;;; ! ~~~~tt ~~...mum~ ...... ... ~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET November 21,2007 NOVEMBER 26 SPECIAL WORK SESSION ITEMS IP1 Council Meetings and Work Session Agenda IP2 Agenda: Legislative Meeting IP3 Memorandum from the City Attorney: Meeting with Area Legislators - Open Meetings/Open Records Interim Study Committee IP4 Memorandum from the Economic Development Coordinator: Downtown Market Niche Analysis IP5 Memorandum from the Director of Planning and Community Development and the Director of Parking and Transit: Downtown parking demand study MISCELLANEOUS IP6 Letter from Diana McGinnis to L. Lynn Rex League of Nebraska Municipalities: Model Municipal Ordinance (for a Parallel Accounting of Municipal Finances in Constitutional Dollars) IP7 Press Release: Update on Leaf Vacuum Service - Extension IP8 Agenda Packet: Task Force on Violence Against Women: November 26,2007 DRAFT MINUTES Ipg Animal Care Task Force: August 23, 2007 IP10 Animal Care Task Force: October 13, 2007 IP11 Public Art Advisory Committee: November 1, 2007 IP12 Economic Development Committee: November 13, 2007 IP13 Historic Preservation Commission: October 24,2007 IP14 Airport Commission: November 8,2007 IP15 Historic Preservation Commission: November 1, 2007 IP16 Telecommunications Commission: October 22,2007 I;; 1 !~~~'t ,,~..ggl~ ....... -A&... CITY OF IOWA CITY City Council Meeting Schedule and Work Session Agendas 1'~~t I November 21. 2007 www.icgov.org . MONDAY, NOVEMBER 26 Emma J. Harvat Hall 5:30p Legislative Meeting · Separate Agenda Posted Special Council Work Session . Planning and Zoning Items "c and d " · Council Appointments · Agenda Items No dinner provided · Downtown Market Niche Analysis · Downtown Parking . Wetherby House [reference Consent Calendar item 4g(3)J · Cool Cities Initiative Update · Metropolitan Coalition Update · Council Time · Schedule of Pending Discussion Items . TUESDAY, NOVEMBER 27 7:00p Special Formal Council Meeting Emma J. Harvat Hall TENTATIVE FUTURE MEETINGS AND AGENDAS I . MONDAY, DECEMBER 10 6:30p Special Council Work Session Emma J. Harvat Hall . TUESDAY, DECEMBER 11 7:00p Special Formal Council Meeting Emma J. Harvat Hall . WEDNESDAY,DECEMBER19 4:30p Joint Meeting Coralville . MONDAY, DECEMBER 24 Christmas Holiday - Offices closed . TUESDAY, DECEMBER 25 Christmas Day- Offices closed . TUESDAY, JANUARY 1 New Year's Day - Offices closed . WEDNESDAY, JANUARY 2 12:00p City Council Organization Meeting Emma J. Harvat Hall . MONDAY, JANUARY 7 6:30p Special Budget Work Session (Overview) Emma J. Harvat Hall . TUESDAY, JANUARY 8 6:30p Special Budget Work Session Emma J. Harvat Hall 1m City Council of Iowa City Meeting with Area Legislators November 26, 2007, 5:30-6:30PM Harvat Hall, City Hall, 410 E. Washington St. 1. Welcome and Introductions 2. Iowa State Housing Trust Fund appropriation 3. Utility Programs that promote energy efficiency appliances and other "green" initiatives 4. Property tax credits / condos 5. Increase the funding for microenterprise development 6. Expand Iowa Earned Income Tax credit 7. Change in Iowa Code 562A.12 (wrongful retention of landlord deposits) 8. Maintain local control over cable franchising 9. Tax Restructuring (rollback, etc.) 10. Enable local government to regulate smoking in public places 11. Support Passenger Rail Transportation Initiatives A. Development of local commuter rail B. Extension of Amtrak service into/through Iowa 12. Iowa City City Council and Iowa League of Cities Shared Priorities A. Alternative Revenues 1) Increasing the hotel/motel tax up to 9% 2) Implementing a sales tax rebate for specifically defined economic development B. Infrastructure Funding 1) TIME-21 Committee a) Pick up truck registration fees b) Statewide sales tax and/or gas tax increase 2) State funding for water/wastewater infrastructure C. Economic Development Initiatives 1) Preserve or expand initiatives such as Vision Iowa, Great Places and Community Attractions 2) Prevent changes that would impair use of Tax Increment Financing (TIF) as an economic development tool D. Limit costs imposed on local government for police/fire pensions. 1) State support of MFPRSI System 13. Other Legislative Issues l ~ ! -.,...= -~ !~ai!:8t ~~~gg.~ --... .. CITY OF IOWA CITY~ MEMORANDUM From: November 20, 2007 ~ City Council Eleanor Dilkes, City Attorney Meeting With Area Legislators - Open Meetings/Open Records Interim Study Committee Date: To: Re: Recently, I have received information regarding the status of the deliberations of the Interim Study Committee on Open Meetings/Open Records and want to pass that information on to you in light of your upcoming meeting with area legislators on Monday, November 26. Vicki Lensing co-chairs the committee with Michael Connolly of the House. At the request of the committee, UI law professor Arthur Bonfield has drafted proposed provisions to include in a committee bill, should the committee decide to present such a bill. The draft is lengthy and deals with a number of issues, including an administrative enforcement scheme and changes to the open records law regarding personal privacy, draft material, and personnel records. The League of Cities and other government lobbying groups are examining this bill and will be presenting to the committee, which is tentatively scheduled to meet again on December 12. While the League wholeheartedly supports openness in government it believes that openness must be balanced with the interest in effective and efficient government operation. I have attached a copy of the League's earlier memo of September 6, 2007 to the committee. I can provide you with a complete copy of Professor Bonfield's draft at your request. At this point, however, I want to make you aware of two provisions which, if they became law, would have an impact on your conversations with each other outside of a public meeting. Attached you will find the proposed provisions regarding email meetings and walking quorums. In my opinion, the provision on walking quorums would severely limit the ability of council members to communicate in groups of less than a quorum, including one-on-one communications. Please review the attached provisions and give me a call if you have any questions. cc: Dale Helling, Interim City Manager Marian Karr, City Clerk eleanor/mem/disclosure11-19-07.doc 15. WALKING QUORUMS 2 3 4 Amend Section 21.2(2) by adding the following new sentence at the end of the first sentence: 5 6 7 A "meeting" includes the calculated use of a series of communications, each between less 8 than a majority of the members of a governmental body or their personal intermediaries, that is 9 intended to reach and does in fact reach a majority of the members of the body and is intended to 10 discuss and develop a collective final agreement of a majority outside of a meeting with respect 11 to specific action to be taken by the majority at a meeting. 12 13 OR 14 15 A "meeting" includes a series of pre-arranged gatherings each of which involves less than 16 a majority of a governmental body's members but that collectively involves a majority of its 17 members where the series of gatherings includes deliberation or action upon the same matter 18 within the scope of the body's policymaking duties, with the specific intention of developing in 19 those series of gatherings a collective final agreement of a majority outside of a meeting 20 concerning action to be taken by a majority at a meeting. 24 14. EMAIL MEETINGS 2 3 Amend Section 21.2(2) by adding the following new sentence at the end of that subsection: 4 5 Email communications by one or more members of a governmental body or by its chief 6 executive officer sent to a majority of its members, or a series of such communications each sent 7 only to a minority of its members but that in aggregate is sent to a majority of its members and 8 that would otherwise constitute a meeting, concerning a particular matter within the scope of the 9 body's policymaking duties, shall not be deemed to constitute a "meeting" if the emails, to the 10 extent such emails are not exempted from disclosure by some provision of 922.7 or another 11 statute, are either posted on the website of the body, or on its public bulletin board, or copies are 12 made available for public inspection at the next regular meeting of the body. 23 ~ ~" IUoHr I I IOWA LEAGUE Qf CITIES September 6, 2007 TO: Joint Interim Study Committee FROM: Terry Timmins, Associate General Counsel SUBJECT: Open Meeting/Open Records Issues On_behalf of theJowa League of Cities, I would like to express our appreciation.for the opportunity to address the Committee today. At its meeting on August 30th, the League's Executive Board adopted its legislative priorities for the upcoming Session, and while none of those priorities speak to open meetings or open records, I think it would be safe to say that the League Board and its member cities wholeheartedly support openness in government, but openness that is appropriately balanced by the interests of effectiveness in government. We share the observations of others who have testified today about where the problems are with enforcement of the open meetings and open records laws. Governmental entities and the press really don't have any serious ongoing issues over open meetings or open records, with perhaps the exception of the walking quorum issue. Most of the issues between government and the media have been worked out in court cases (City of Dubuque v Dubuque Racing Ass 'n. Ltd. 1988; City of Sioux City v Greater Sioux-€ity-Press Club, 1988), or they have-been worked-out in legislative amendments allowing closed sessions or exempting certain records from public examination (ISU foundation donor information), or they have been worked out in tacit agreements between governmental entities and the press (keeping rape victims names confidential). Many of the current problems with openness in government occur between government and its citizens, and are probably the result of lack of knowledge about open meetings and open records requirements. The League constantly attempts to educate its members on those requirements. Staff of the League's Membership Services Department frequently receive open meetings and open records questions from city officials and they tend to give fairly conservative guidance in response to those questions - guidance which is usually followed. The League has produced open meetings and open records brochures that it provides to city officials at various meetings and workshops. In late November and early December this year, after the city elections are concluded, the League will sponsor a series of six Municipal Leadership Academy workshops around the state for newly elected and appointed city officials. As I did two years ago, I will be making a presentation on city legal issues at those workshops - including coverage of open meetings and open records requirements. Despite those efforts, it would appear that our message on openness in government doesn't always reach all of our communities and all of our city officials. High profile cases will probably continue to arise from time to time, involving local disputes where an open meetings issue or an open records issue becomes the flashpoint, but we don't see an increase in the incidence or severity of such violations as others have described. Clearly, there is probably a need for more education of local officials as to open meetings and open records requirements. 317 SIXTH AVENUE 0 SUITE 800 0 DES MOINES, IOWA 50309-4113 (5151244-72620 FAX (515) 244-07400 WE6 SITE: www.iowoleogue.org SefvIIlg fowo's cil;[':, since J 898 President Dee Vanderhoef Council Mernber, Iowa City Illlllledrote Posl P(f~sjclt.'nt John Vi Mordis Mayor, Evonsdale President-eJect Jim L Fausett 1~J\ayor, Coralville Executive Difeclol Thomas G. Brec.lew~J September 6, 2007 Page 2 The League recognizes that the Committee is committed to addressing the open meetings and open records laws and updating them to bring them into the 21 st century, and we applaud that effort. We would only request that in doing so, the interests of openness in government be balanced by the interests of effectiveness in government. In preparation for this presentation, I solicited the views of a number of city attorneys around the State about the open meetings law and the open records law. Many of the concerns expressed by those city attorneys involved the impacts of open meetings and open records requirements on the effectiveness of city government, and many of their concerns coincide with those expressed by Professor Bonfield. So what I want to do is outline for the Committee the views of those city attorneys, starting with the open meetings law. A. Open Meetine:s I. One of the views expressed by several city attorneys, and supported by the League, is that a closed session should be allowed both to interview and to review the credentials of job applicants, and for evaluation of employees whose performance or discharge is being considered, without having to show needless and irreparable injury to that person and without having to have a request from that person for a closed session. The concern is that requiring the evaluation of job applicants or employees to occur in open session discourages council members from being candid in their inquiry and in their comparison or assessment of those individuals, either for fear of embarrassing those persons, for fear of confrontation, or in some instances for fear of precipitating a lawsuit by those individuals. Without such candid inquiry, comparison and assessment, the public will likely be poorly served in the decision who to employ or who to terminate. 2. City councils are often in the position of having to approve contracts negotiated by their staff, and they often want to be in a position to give direction to staff as to the city's negotiating position, or as to the negotiating position of the other party to the contract. City staff typically want to obtain the council's perspective on critical contract terms, such as the price range or range of compensation, before they finalize those contracts and bring them back to the council for approval. Those strategy discussions really can't occur in public, because that would give advantage to the other side in those negotiations. Consequently, the view has been expressed that a governmental body should be allowed to have a closed session with its staff to discuss and give direction regarding the negotiation of contracts, and that would include economic development contracts, lahor contracts, franchise agreements, contracts or offers involving the purchase or sale of real estate, and regarding the negotiation, renegotiation and renewal of leases and operating agreements. B. Open Records On the open records side, the League supports the view that a draft of any contract that is being negotiated, and any staff reports about the contract and its negotiation, should be confidential until negotiations are completed and the contract is presented to the governmental entity for approval. 2 September 6, 2007 Page 3 4. When a governmental entity is acquiring property, say for a public improvement project, Chapter 6B of the Code requires the governmental entity to get an appraisal of the value of the property that it is acquiring. Section 22.7 of the open records statute protects appraisals and appraisal information until the project has been publicly announced. Chapter 6B of the Code has been carefully crafted over several recent legislative sessions to require the disclosure ofthe appraisal or appraisal information to the seller at the time the governmental entity makes an offer to purchase particular property. The League supports the view that Section 22.7 should be amended to coincide with Chapter 68 - Section 22.7 should be amended to provide that appraisals or appraisal information should be confidential until the governmental entity makes an offer to purchase the property. Governmental bodies often get property appraisals in project planning stages and they sometimes decide not to pursue a project because of potential property acquisition costs. Disclosure of that information to third parties or to the public, prior to the making of a purchase offer, only makes the property purchasing process more difficult. What property owner would be pleased to learn that his or her property has been appraised even before the governmental body has decided to purchase it, or before the governmental entity has approached the property owner about purchasing it? 5. The League supports the view that bid tabulations and proposal evaluation reports, which are created by stafffor consideration by the governmental body, should be confidential until staff makes its recommendation to the governmental body as to the lowest responsible, responsive bid or as to the best proposal. 6. The open meetings law currently allows closed session discussion to review or discuss records which are required or authorized by state or federal law to be kept confidential. For purposes of symmetry and consistency, the League supports the view that documents which are developed and provided to the governmental body to aid in a closed session discussion of a matter should also be exempt from public records disclosure. 7. The open records law currently makes confidential Iowa department of economic development information on an industrial prospect with which the department is currently negotiating. The League supports the view that this confidentiality exemption should be extended to other governmental entities that have such information in their possession relating to negotiations with commercial or industrial prospects. 8. The League would support the view that the provision which makes confidential "personal information in confidential personnel records of public bodies" needs to be clarified. 9. The League supports the view that governmental bodies should not have to publish minutes ofa work session if all the body did was discuss issues with staff and deliberate as a body, but took no action. A meeting notice should be published, and the meeting should be held in open session, but there should be no requirement that minutes of such a meeting be published. 10. Finally, the League supports the view that disclosure of a confidential record, or the content of a closed session discussion, to a person outside of the governmental entity should be prohibited, and a governmental body should be allowed to sanction a person who discloses confidential information to a third party to the detriment of the governmental entity or to the detriment of the privacy interests of any person. 3 September 6, 2007 Page 4 Conclusion The Iowa League of Cities is strongly committed to assisting the Committee in its efforts to update the open meetings and the open records laws. The Committee can consider the League a resource in that effort. We are anxious to acquaint you with how cities operate under current open meetings and open records requirements, and with the challenges that cities face in honoring those requirements and in operating effectively and efficiently. 4 l ~ 1 ~~~~'t ,,~~ga.~ --... .. CITY OF IOWA CITyrnJ MEMORANDUM Date: To: From: Re: November 19, 2007 City Council . Wendy Ford, Economic Development Coordinator D!JI-- Downtown Market Niche Analysis l/ Following is the final report by Marketek, Inc. of the Downtown Market Niche Analysis, a project Marketek, Inc. has been working on since February, 2007. This study was conducted to provide a roadmap for us in terms of future decision-making regarding downtown. Key findings We can capitalize on our strengths and enhance the economic vitality downtown by: . Attracting unique casual apparel, home furnishings, art, specialty and convenience businesses, . Influencing where retailers locate by encouraging similar businesses to form clusters and share customers, . Forming a partnership between the City, The Iowa City Area Chamber of Commerce, the Downtown Association and private stakeholders with a goal to better manage the downtown, and . Enhancing the "creative culture" offerings of downtown to attract young/creative professionals. Why the study? Since the 1960s and 70s urban renewal process, the City has had a vested interest in the health of the downtown. Throughout the 1980s until the mid-90s, downtown business prospered and the health of the area existed in a relative steady state. In 1998, Coral Ridge Mall opened, which was a turning point in downtown's retail mix. Notable changes included the closing of the two anchor stores in the Old Capitol Mall, which was followed by the moving or closing of many smaller stores, until only a handful were left. In the early 2000s, a new wave of downtown development and public investment began the transformation of downtown from a retail center to an arts, entertainment and residential center. This included the rebuilding of the Whiteway building, the building of Vogel house and the city's first high rise, Plaza Towers. Each of these developments has had a significant impact on the aesthetics of the downtown, residential offerings within it, and the availability of new retail space. The city's second high rise, Hieronymus Square will be the first significant multi-use building south of Burlington Street and will add significant retail, commercial and additional residential units to the expanding downtown area. Over the recent few years, the City of Iowa City has invested upwards of $36 million in its downtown, including the new library, installation of public art, streetscape renovations on Iowa Avenue, Pedestrian Mall renovations and the financing assistance through TIF of two of the largest new projects downtown. I will take you through the highlights of the study at your work session on November 26. cc: Dale Helling, Interim City Manager Jeff Davidson, Director of Planning and Community Development Downtown Iowa City Market Niche Analysis Iowa City, Iowa November 2007 100 Waverly Way, NE Atlanta, Georgia 30307 404.522.2243 ~ lIlar...ete... 9220 SW Barbur Boulevard Portland, Oregon 97219 503.636.1659 www.marketekinc.com TABLE OF CONTENTS Executive Sum m ary ................................................................................................................ 1 Introduction & Methodology.................................................................................................. 5 Chapter 1 Retail Target Markets..................................................................................................... 7 Loca I Residen t Sh oppers ................................................................................................... 8 Visitor Ma rket ..................................................................................................................... 19 stud ent Market................................................................................................................. .20 Area Employees............................................................................................................... .21 Appendix 1-A: Tapestry Market Segment Descriptions ............................................24 2 Opinion Research......................................................................................................... 35 S u rv eys .............................................................................................................................. ..36 Foc us Gro u ps .................................................................................................................... .38 Town H a II M eetin g Sum ma ry ......................................................................................... 040 Appendix 2-A: Consumer Survey Results....................................................................A3 Appendix 2-B: Business Owner Survey Results ............................................................64 3 Retail Market Analysis.................................................................................................. 77 Retail S u pp Iy ...................................................................................................................... 78 Co m petitive Com mercia I Assessmen t ........................................................................ .81 Retail Dema nd ................................................................................................................. .85 Potential Downtown Retail Development ...................................................................98 4 Housing Market Analysis........................................................................................... 100 Profile of Residential Target Market............................................................................. 1 01 Resid entia I Su p ply........................................................................................................... 1 06 Resid entia I Demand....................................................................................................... 11 7 Potential Downtown Residential Development .......................................................120 5 Office Market Analysis............................................................................................... 124 Office S u pp Iy ................................................................................................................... 125 Office Dema n d ............................................................................................................... 126 Down town Office Market.............................................................................................. 128 Potential Downtown Office Development ................................................................129 6 Lodging Market Analysis........................................................................................... 131 In d ustry Overview ........................................................................................................... 132 Loca I Supply .................................................................................................................... 134 Potential Downtown Hotel Development ..................................................................138 ell'lar....ete.... DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS TABLE OF CONTENTS 7 Creative Cluster Analysis........................................................................................... 140 Characteristics of the Creative Class .........................................................................141 Creative Class Priorities and Interests..........................................................................142 Tren ds .............................................................................................................................. ..142 Case stud ies .................................................................................................................... 144 Critica I Success Fa ctors ................................................................................................. 152 Iowa City's Competitive Position .................................................................................152 Suggested Actions.......................................................................................................... 155 Appendix 7 -A: References ...........................................................................................157 8 From Market Analysis to Market Results ................................................................. 160 Downtown Retail strategy ............................................................................................161 Organizing for Downtown Business Development ...................................................170 M arketin g Pia n ................................................................................................................ 1 75 Appendix 8-A: Complete List of Expanding Retailers .............................................184 Appendix 8-B: Property Assessment Worksheet .......................................................188 ell'lar...ete.... DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS ii EXECUTIVE SUMMARY The Downtown Iowa City Market Niche Analysis project is a multi-faceted market study and redevelopment strategy led by Marketek, Inc. during the May - October 2007 time frame. The project includes an opportunity analysis of multiple real estate products including retail, residential, office and lodging; a retail target market analysis; community outreach/opinion research; and the creation of a business development/marketing strategy. This executive summary outlines major findings from each of these areas of research and analysis. It highlights the recommended retail strategy and business mix and outlines next steps for organizing for downtown development. Finally, it provides key concepts for encouraging downtown business development and for marketing downtown Iowa City. Downtown Iowa City Market Analysis Summary of Findings Local Resident Demographic Characteristics . The 2007 population of the Iowa City local trade area (7-minute drive time) is estimated at 80,182, growing to 84,179 by 2012; The 2007 greater trade area population is 144,255, increasing to 154,457 by 2012 . Median Age: 27.6 (local area) and 30.3 (greater area) . Median Household Income: $43,726 (local area) and $50,371 (greater area) . 70.2% (local) and 66.5% (greater)employed in white collar jobs Other Target Markets . Day time employee population: 1-mile radius from downtown, 33,000; 2-mile radius, 53,769 . Visitors: >500,000/year . Students: 30,000 Top Strengths/Opportunities . Significant public and private investment . Active, 24-hour downtown district . All target markets are growing . Critical mass of arts, culture, restaurants, entertainment . Unique business anchors and clusters . Business niches to be filled Top Issues/Challenges . Coralville's aggressive commercial development . Limited property available downtown for retail . Retail rents are relatively high . Oversupply of bars ell'lar....ete.... EXECUTIVE SUMMARY I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS . Downtown branding and destination are needed . Downtown lacks a strong management team/organization . Perceived parking limitations Opinion Research Findings . Focus groups, town hall meeting, interviews, consumer survey and business survey completed . Top shopping/other needs: casual apparel, household goods/ accessories, furniture, health food restaurant, seafood, movie theater . Downtown is treasured as cosmopolitan and 'exciting' . Most downtown businesses are 'stable,' not expanding rapidly Retail Market Opportunities . Local market area retail leakage of $3.4 million and greater market area retail leakage of $81 million in 2007 . Potential growth in greater retail market of $93.8 million or 381,190 sq ft of new space by 2012 and $101.7 million or 413,097 sq ft additional space by 2017 . Growing visitor demand will result in 227,105 sq ft of additional retail and restaurant potential . Downtown Iowa City can potentially capture 282,644 sq ft of this new demand over the next decade Housing Market Opportunities . Limited supply of non-student housing, both rental and for-sale . Rents increasing at a rate of 2% to 3% annually . Low rental vacancy rate - 2% . Median and average home sales prices increasing at an average annual rate of 5% with median values highest in Iowa City . Rentals dominate downtown housing with an estimated 1,852 units . Potential demand for 22,043 new units in the market area by 2017 . Downtown Iowa City can potentially capture 16.5% of demand and add 1,383 for-sale and 2,257 rental units by 2017 . Target markets for downtown housing are entry- and higher-level professionals, empty-nesters and students . Downtown housing should include units affordable to the area workforce and recent graduates beginning careers . Opening downtown price points from $150,000 to $230,000 for condominium units e lI'Iar...ete... EXECUTIVE SUMMARY I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 2 Office Market Opportunities . steady, growing annual demand for office space in the Technology Corridor . Jobs are anticipated to increase by more than 3,500 annually in the Technology Corridor, 2007-2014 . There is only a six month supply of available Corridor office space . Downtown has the potential to capture 17.5% of Corridor demand, or approximately 353,199 square feet from 2007-2014 . Downtown has the long term potential for development of speculative office space . Economic development representatives say that marketing efforts to attract new businesses are hampered by the lack of large spaces for lease (5,000 square feet or more) in downtown Iowa City . There is a 'waiting' market for small, for-sale office space Lodging Market Opportunities . Lodging revenue in Iowa City/Coralville market shows steady increase since 1997 . Overall occupancy rate for the Iowa City/Coralville market is estimated to be 66%, but there have been reports of significant room vacancies in downtown Iowa City during 'off times' . In the absence of a comprehensive hotel feasibility study for the area, the potential demand for additional hotel rooms located in downtown is unclear at this point in time Creative Cluster/Young Professionals . Nearly 1/5th of the local market area is comprised of young professionals age 25-34, well above the state average (12.3%) . Among the factors that attract the creative class are jobs, livability (e.g., presence of lively downtown core, cost of living, transportation options, etc.) and cultural capital (e.g., vibrant arts & music scene, cultural diversity, etc.) . Iowa City possesses many of the qualities desired by young professionals and the ability to 'seed' a creative economy . Future success is dependent on clear goal definition, a well orchestrated promotion plan, leadership for/commitment to the plan e lI'Iar...ete... EXECUTIVE SUMMARY I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 3 Summary of Recommendations Retail Strategy & Business Mix . Focus on unique casual apparel, home furnishings, accessories, local artisans and crafters, specialty goods, convenience goods, restaurant variety and entertainment . Build on existing retail clusters (home furnishings & accessories, apparel/boutiques and family /community- serving clusters) to take advantage of shared customers and markets . Mix non-chain, locally-owned shops with regional and/or national retailers by targeting chains expanding in Iowa Organizing for Downtown Development . Establish a Downtown Business Development Partnership and hire a qualified manager with real estate, sales and marketing, small business development and/or community and economic development experience as its leader . Partnership members should include the Chamber of Commerce, the City of Iowa City, the Downtown Association of Iowa City, the Iowa City Area Development Group, the University of Iowa and bankers, developers and key business/property owners in downtown . Partnership should focus on property development, business retention and expansion, business attraction and marketing and communications Business Development & Marketing Plan Property Development . Identify commercial properties ready for new business occupants and keep an up-to-date inventory of all vacant or underutilized downtown properties . Develop and publicize tools/incentives for redeveloping downtown properties Business Retention and Expansion . Provide education, technical assistance and recognition for existing downtown businesses and assist with relocation to encourage development of retail clusters Business Attraction . Establish 3-6 target business priorities for downtown - among top opportunities are apparel, jewelry, home goods, toys, groceries, health food and a day spa . Develop recruitment campaigns (referral networks, niche marketing campaigns, etc.) and marketing material (maps, info sheets, brochures, etc.) to attract targets . Promote locations in existing retail clusters and target businesses that will strengthen these clusters by complementing current retailers . Advertise successful retention and recruitment strategies to the media, professional associations, developers and local businesses and property owners Marketing and Communications . Develop a consistent brand or theme and design concept that evokes downtown's vibrant, youthful atmosphere . Encourage downtown partners to use this design concept in their marketing . Expand website presence and make all downtown market, property and development news and information available online ell'lar...ete.... EXECUTIVE SUMMARY I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 4 INTRODUCTION & METHODOLOGY This report shares Marketek's findings of the Downtown Iowa City Market Niche Analysis conducted during the May - October 2007 time frame. The goals of the multifaceted market opportunity analysis are to: . Create an accurate and realistic picture of the downtown's retail, residential, office, lodging and entertainment potential within the Iowa City marketplace, including the location and characterization of the existing supply of businesses, consumer preferences, needs and buying patterns and opportunities and challenges for growth and development; . Understand the gaps in the retail, residential, office and lodging markets and the potential for increased development by product type; . Clearly understand the needs and preferences of downtown Iowa City's key target markets, including community residents, university students, employees, business owners and visitors; . Provide the district with key business retention and recruitment strategies and a game plan for strengthening and diversifying the local retail/service industry; and . Provide user-friendly data for promoting target business opportunities to existing and prospective business and developer prospects. Methodology As downtown Iowa City's redevelopment efforts will be phased over time, the market analysis considers a ten-year time period from 2007-2017, which is a realistic projection period for retail development. The research (both primary and secondary) includes: . Statistical estimates of potential supportable retail, residential and office space in the downtown; . Community-wide surveys of resident shopping preferences and of the Iowa City business community; . Seven focus groups and a town hall meeting; . Interviews with local developers, retailers, planners, government officials and other business and community leaders; . Case studies of cities with flourishing creative clusters; and . Two site visits and in-store visits to all downtown businesses. This report is organized into eight principal sections or chapters: 1 Retail Target Markets 2 Opinion Research 3 Retail Market Analysis 4 Housing Market Analysis 5 Office Market Analysis 6 Lodging Market Analysis 7 Creative Cluster Analysis 8 Implementation Strategies ell'lar...ete.... INTRODUCTION & METHODOLOGY I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 6 CHAPTER 1 RETAIL TARGET MARKETS Downtown Iowa City's primary target consumer markets for retail, services and entertainment include local residents, area employees, students and visitors. This section characterizes the size and features of each market, with an in-depth look at the local resident market, which provides the downtown with the greatest opportunity for a dependable source of year-round sales and with potential buyers of newly developed housing. LOCAL RESIDENT SHOPPERS The socioeconomic characteristics of Iowa City's retail trade area are provided in this section. The retail market area is comprised of a "local" and a "greater" area. Local retail market area residents (defined as those living within a seven minute drive from the intersection of Washington and Dubuque streets) will look to the downtown for specialty shopping, entertainment and convenience-related goods and services. The greater retail market area is much larger and is the area from which a majority of "destination" shoppers emanate. Its boundaries extend just beyond Johnson County and are based on drive-time estimates, interviews with Iowa City business owners and the location of existing retail competition. The map on the following page illustrates the boundaries of the greater and local retail market areas. The delineation of market areas is not meant to suggest that prospective local customers of downtown businesses will be drawn solely from these geographic areas. Because of downtown Iowa City's central location, competitive assets and visitor and economic development, prospective retail customers will also be drawn from outside of the market areas. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 8 Iowa City, Iowa Retail Market Areas ""G \~'"4-:' \,. , .}/'"" .~ ~ I. 'J. /~-' ..... ~ <')-.."f.... >~ ~. ~ .....at., ~-l. I~~.'l ,,!- C t ,p&f:...', .'. ~ '<- / ",- ('1a~5"t1~,/ " ~ (<:'" .!r- 00 .\ ,-..... '. ~ . · '--:'% ~....~.,i,. .' .& ,..~ .-... ',.l.i;::. ..,..... , ' ...- 1 ':<n. ......Jlt...."'....n. . '"- .' ~.'!I:jJllio....."....~') "..~." , ...~-;.----.../' I '~"c- <- 1 t. '. . fc.:W.' Lr-:'./ i,l ~~~ -0 ,~...-" '\... . ';. Y""""o \. ( I, (, I,}..... _, ',..:. ..!J....J ~l; '. ".),-;..-.:" .~ t Co li nt.!.' H'N\!. ... ::; "\ . 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Population and Household Growth · From 1990 to 2007, the population growth rate in both the local and the greater retail market areas outpaced that of the state (Exhibit IC-1). The average annual population growth rate for the greater trade area was highest at 1.70%, followed by the local area at 0.83% and the state at 0.54%. Household growth rates followed a similar pattern, but were higher: 2.39% for the greater trade area, 1.65% for the local trade area and 0.83% for the state. · The 2007 population of the Iowa City local retail market area is estimated at 80,182; the greater retail market area is estimated at 144,244. The local area includes 34,485 households with an average household size of 2.12. Households in the greater retail area tend to be larger, averaging 2.31 persons for a total of 58,763 households. Both market areas have average household sizes below that of the state of Iowa (2.41); household size in all areas are expected to decrease slightly by 2012. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 9 · The population growth rate in the greater retail trade area is expected to decrease from 1.70% to 1.42% over the next five years, adding an average of 2,043 persons per year to reach 154,457 by 2012. In the local trade area, the population growth rate is projected to accelerate to 1.00%, with the total population reaching 84,178 in 2012. Forecasts indicate that the growth rate in the state of Iowa will remain stable over the 2007-2012 period. Local Retail Market Area Population 70,217 80,182 586 0.83% 84,179 799 Households 26,948 34,485 443 1.65% 36,697 442 Avg. Household Size 2.29 2.12 -0.010 2.10 -0.004 Greater Retail Market Area Population 111,839 144,244 1,906 1.70% 154,457 2,043 Households 41,775 58,763 999 2.39% 63,681 984 Avg. Household Size 2.45 2.31 -0.008 2.29 -0.004 state of Iowa Population 2,776,755 3,030,140 14,905 0.54% 3,110,913 16,155 Households 1,064,325 1,213,728 8,788 0.83% 1,253,509 7,956 Avg. Household Size 2.52 2.41 -0.006 2.40 -0.002 Average Annual Population Growth Rates, 1990-2012 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Avg.Ann.Change 1990-2007 A vg. Ann. Change 2007-2012 Geographic Area 1990 2007 Number (Estimate) Percent Percent 2012 Number (Forecast) 1.00% 1.28% 1.42% 1.67% 0.53% 0.66% II Local .1990-2007 Avg. Ann. Change Greater Iowa 1!I2007-2011 Avg. Ann. Change Source: ESRI BIS; Morketek, Inc. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 10 B. Age Distribution · The population within the Iowa City local retail market area is somewhat younger than the greater retail trade area, with the population of both considerably younger than that of the state of Iowa (Exhibit IC-2). The 2007 median age within the local retail market area is estimated at 27.6 years, compared to a median age of 30.3 years in the greater retail trade area and 37.9 years in the state. · In 2007, the estimated proportion of the population under the age of 15 in the local retail trade area is 13.3%, in the greater retail trade area, 17.0% and in the state, 19.2%. · An estimated 30.5% of the local retail market area population is age 15 to 24 in 2007, higher than the greater retail market area at 23.1 % and the state at 15.0%, reflecting the impact of University of Iowa students. · The prime consumer age category, ages 25 to 64, comprises similar proportions of the population in all areas, ranging from 40.8% for the state to 42.7% for the greater retail trade area. · In 2007, the share of residents age 65 years and older in the local and greater retail market areas are 7.2% and 8.3%, respectively, both considerably below the state proportion of 14.3%. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 11 Age Category Local Retail Greater Retail state of Iowa Market Area Market Area Under 5 4.9% 6.0% 6.6% 5-14 8.4% 11.0% 12.6% 15-19 10.6% 9.0% 7.1% 20-24 19.9% 14.1% 7.9% 25-34 19.1% 16.5% 12.3% 35-44 10.8% 12.9% 13.2% 45-54 11.3% 13.3% 15.3% 55-64 7.7% 9.0% 10.8% 65-74 3.4% 4.2% 6.7% 75-84 2.5% 2.7% 5.0% 85 and Older 1.3% 1.4% 2.6% Total 80,182 144,244 3,030,140 Median Age 27.6 30.3 37.9 Age Distribution of the Population, 2007 25.0% 20.0% 5.0% 15.0% 10.0% 0.0% Under55-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-8485and Older -Local Retail Market Area -Greater Retail Market Area ~State of Iowa Source: ESRI BIS; Marketek, Inc. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 12 c. Household Income Distribution · Exhibit IC-3 shows that households in the Iowa City local market area are less affluent than households statewide, likely because of their younger ages and the large portion of students. Those in the greater market area, however, have slightly higher average incomes than the state. Estimated 2007 median household income is $43,726 in the local retail trade area, $50,371 in the greater retail trade area and $49,331 statewide. Income Local Retail Greater Retail state of Iowa Market Area Market Area Less than $15,000 16.5% 12.5% 10.8% $15,000 to $24,999 13.5% 11.3% 10.9% $25,000 to $34,999 10.7% 10.4% 11.9% $35,000 to $49,999 15.3% 15.4% 17.0% $50,000 to $74,999 15.9% 18.3% 22.4% $75,000 to $99,999 10.4% 12.5% 12.6% $100,000 to $149,999 11.2% 12.2% 9.8% $150,000 to $199,999 3.2% 3.7% 2.3% $200,000 and more 3.3% 3.7% 2.2% Total 34.485 58,7 63 1 ,213,728 Median Household Income $43,726 $50,371 $49,331 Household Income Distribution, 2007 25.0% 15.0% 20.0% 10.0% 5.0% 0.0% Less than $15,000 to $25,000 to $35,000 to $50,000 to $75,000 to $100,000 to $150,000 to $200,000 $15,000 $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 and more _Local Retail Market Area _Greater Retail Market Area ~state of Iowa Source: ESRI BIS; Marketek, Inc. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 13 D. Racial Composition · Racial composition (shown in Exhibit IC-4) in the Iowa City market areas is more diverse than the state of Iowa. · An estimated 83.8% of local retail market area residents are white, compared to 87.5% of greater retail market area residents and 92.4% of residents statewide. The local Iowa City retail market area has a high proportion of Asian/Pacific Islander residents (8.2% versus 1.9% in the state). The percentage of Hispanic residents in the market areas are similar to that of the state, ranging from 3.7% in the local area and the state to 4.3% in the greater retail market area. Race Local Retail Greater Retail state of Iowa Market Area Market Area White Alone 83.8% 87.5% 92.4% Black Alone 4.3% 2.9% 2.4% American Indian Alone 0.3% 0.3% 0.3% Asian/Pacific Islander 8.2% 5.7% 1.9% Some Other Race Alone 1.5% 2.0% 1.7% Two or More Races 1.9% 1.6% 1.2% Hispanic Origin (any race) 3.7% 4.3% 3.7% Total 80,182 144,244 3,030,140 Racial Composition, 2007 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% White Alone Black Alone American Asian/Pacific Some Other Two or More Hispanic Indian Alone Islander Race Alone Races Origin (any race) . Local Retail Market Area iii Greater Retail Market Area . State of Iowa Source: ESRI BIS; Marketek, Inc. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 14 E. Community Tapestry Segments Recognizing that people who share the same demographic characteristics may have widely divergent interests and shopping preferences, Community Tapestry data (developed by ESRI Business Information Solutions) categorizes neighborhoods throughout the nation into 65 consumer groups or market segments. Neighborhoods are geographically defined by census blocks, which are analyzed and sorted by a variety of demographic and socioeconomic characteristics as well as other determinants of consumer behavior. Market area households have been grouped into Tapestry market segments. The market segments within the Iowa City market areas are identified and summarized in Exhibits IC-5 and IC-6 on the following pages. While the characteristics of each market segment vary, households within the retail market areas tend to be single or shared households or young couples with or without children. There is a mix of homeownership and rental housing, with many households living in multi-unit structures. Although these segments may be highly educated, incomes are moderate as many people are just beginning their careers or finishing college. Members of these segments tend to spend on themselves and enjoy outdoor activities and travel. Top market segments include "Enterprising Professionals," "Dorms to Diplomas," "Aspiring Young Families" and "College Towns." Appendix 1-A provides detailed descriptions of each market segment in the Iowa City market areas. (Note that the residential household figure refers to the residential market area described in the Housing Market Analysis in Chapter 4 beginning on page 100.) Local Retail Market Area Greater Retail Market Area Market Segment Percent Market Segment Percent of H Hs of HHs 1 Enterprising Professionals 17.2% Aspiring Young Families 15.1% 2 Dorms to Diplomas 13.5% Enterprising Professionals 11.9% 3 College Towns 12.8% Dorms to Diplomas 7.9% 4 Metropolitans 10.9% College Towns 7.5% 5 Young and Restless 10.6% Metropolitans 6.4% 6 Aspiring Young Families 10.1% Young and Restless 6.3% 7 In Style 7.9% Exurbanites 6.0% 8 Crossroads 3.9% Crossroads 5.6% 9 Exurbanites 3.7% In Style 5.0% 10 Urban Chic 3.3% Green Acres 4.2% Total Households 32,381 44,601 Source: ESRI 81S; Marketek, Inc. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 15 EXHIBIT IC-6 SUMMARY OF TOP TAPESTRY SEGMENTS Market Segment Socioeconomic Residential Preferences Aspiring Young Families . Young families, . Approximately one- . Buy big-ticket home . Local Retail HH: 10.1 % married couples or half hove purchased furnishing items and . Greater Retail HH: 15.1 % single parents. single family detached electronics. . Residential HH: 13.8% . Ethnically diverse. and attached . Purchase baby and . Average income. townhouses, valued children's products and . Work mostly in service, slightly below the toys. soles, administration notional overage. . Like dancing, going to the and government jobs. . If renting, rents are movies, working out at the typically slightly below gym, kickboxing and overage. attending pro basketball games. . Dine out at family restaurants. College Towns . Young, college . Live on campus or in . Computer-savvy and use . Local Retail HH: 12.8% students or recent low-income rental the internet to make . Greater Retail HH: 7.5% college grads. apartments. purchases, do research . Residential HH: 6.9% . High levels of . A quarter of homes are and visit chat rooms. education but low owner-occupied. . Drive older cars that they incomes. may repair themselves. . Predominately white. . Participate in outdoor . About half work part sports and enjoy time, usually in service backpacking and hiking. jobs on and off- . Attend rock concerts, campus. football games and bars. Crossroads . Married couples with . Homeowners living in . Own riding lawnmowers, . Local Retail HH: 3.9% children or single single family detached deep fryers and pet birds. . Greater Retail HH: 5.6% parents. homes or mobile . Toke over-the-counter . Below overage homes. diet pills and anti-anxiety wages. . Home values below drugs. . Hove manufacturing, notional overage. . Go to movies, gamble in construction or retail Mississippi and watch jobs. daytime TV. Dorms to Diplomas . Over 80 percent are . Live in campus . Hove student loons. . Local Retail HH: 13.5% attending college. dormitories or rent off- . Shop at Banana Republic, . Greater Retail HH: 7.9% . Most residents are campus apartments in The Limited or the Gap. . Residential HH: 7.3% white; others are block multi-story buildings. . Work out or jog regularly or Asian. . Share housing. and enjoy backpacking or . Work part-time in low hiking vocations. paying service jobs, . Attend concerts, pool often on campus. halls and dance clubs. Enterprising Professionals . Young, highly . Live in newer . Purchases reflect their . Local Retail HH: 17.2% educated working neighborhoods in youth, mobility and . Greater Retail HH: 11.9% professionals. town homes or growing status. . Residential HH: 10.9% . Single or recently apartments. . Rely heavily on Internet for married. . Mobile but prefer to shopping, work and own rather than rent communication. . Travel, practice yoga, jog and go to the gym. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 16 EXHIBIT IC-6 (continued) Market Segment Socioeconomic Residential Preferences Exurbanites . Married, empty . Single family homes . Work on their gardens . Local Retail HH: 3.7% nester couples. valued well above the and decorate their . Greater Retail HH: 6.0% . Affluent. notional overage. homes. . Residential HH: 5.7% . Professional jobs and . Commute time is . Enjoy working on their work in home offices. below other affluent homes themselves. . Highly educated. market segments. . Order from Lands End . Predominately white. and LL Bean and listen to public radio. . Drink domestic wine, attend theater/dance performances and toke photographs. . Go kayaking, booting and hiking. Green Acres . Second largest . Prefer to own new, . Stay fit by using home . Greater Retail HH: 4.2% Tapestry market single family detached exercise equipment, . Residential HH: 4.4% segment. homes in developing mountain biking and . Predominately white suburban fringe areas. taking vitamins. married couples with . One-third own more . Enjoy hiking, camping, and without children. than three vehicles. hunting and gardening . About one-sixth are and make purchases self-employed. related to these activities. . Others employed in . Hold 0 home equity line skilled labor and of credit and 0 money farming occupations. market account. In Style . Affluent professionals. . Favor townhouses . More suburban than . Local Retail HH: 7.9% . Small household size- over single family urban but prefer on urban . Greater Retail HH: 5.0% few children. detached. lifestyle. . Residential HH: 4.6% . Dual income . Live in prestigious . Technologically savvy. households. neighborhoods. . Home repairs and yard work are contracted out. . Health conscious - eat healthy and work out. Metropolitans . Singles and childless . Live in older . Busy, urban lifestyle. . Local Retail HH: 10.9% couples. neighborhoods. . Enjoy yoga, listen to jazz, . Greater Retail HH: 6.4% . Slightly older with . Mix of single family rent foreign videos, . Residential HH: 6.3% incomes above the and multi-unit attend rock concerts and notional overage. structures. visit museums. . Almost equally . Travel frequently for divided by renters and business and pleasure. owners. Urban Chic . Professionals with . Ownership . Travel extensively and visit . Local Retail HH: 3.3% sophisticated, predominates. museums, dance exclusive lifestyles. . Homes valued well performances and . High median income above notional concerts. and net worth. overage. . Use PCs to access the . Well-educated and . Concentrated on the Internet, which they use to employed in scientific California coast and arrange travel, follow and technical the East coast. investments and make services, educational purchases. and health-care . Avid readers and listeners sectors. of classical music. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 17 EXHIBIT IC-6 (continued) Market Segment Socioeconomic Residential Preferences Young and Restless . Young and on the go. . Due to their youth, high . Purchases center on . Local Retail HH: 10.6% . Single person and turnover. themselves: sports . Greater Retail HH: 6.3% shared households. . Approximately three- clothing/gear, designer . Residential HH: 5.8% . Moderate incomes. quarters are renters. clothing and . Work in service and . Rents and home values computers/software. professional are in line with the . Enjoy movies, concerts, management notional overage. fast food and bar/grilles. occupations. . Use storage facilities. . Shop at Banana Republic and Express. F. Employment The employment and occupation of Iowa City's market area residents offer additional insight and dimension to their demographic characteristics. Exhibit IC-7 depicts the employment distribution by economic sector of residents age 16 and older for the Iowa City market areas and the state of Iowa. A higher proportion of the residents of Iowa City's retail market areas are employed in service jobs and a lower proportion in the manufacturing, construction and agriculture/mining sectors when compared to the state. The average time to work for residents of the Iowa City greater retail market area is similar to that of the state (18.2 minutes and 18.5 minutes, respectively), while residents of the local retail market area have an average commute time of 16.2 minutes. EXHIBIT IC-7 EMPLOYED POPULATION 16+ BY INDUSTRY Iowa City Retail Market Areas and State of Iowa 2007 Economic Sector Local Retail Greater Retail State of Iowa Market Area Market Area Agriculture/Mining 0.3% 1.6% 3.7% Construction 3.9% 5.9% 7.6% Manufacturing 4.7% 7.5% 13.9% Wholesale Trade 1.6% 2.2% 4.0% Retail Trade 11.7% 11.3% 12.3% T ransportation/U tilities 2.2% 2.9% 4.9% Information 3.5% 3.1% 2.0% Finance/Insurance/Real Estate 4.5% 4.6% 6.9% Services 65.5% 58.6% 41.4% Public Administration 2.0% 2.1% 3.2% Total Number 47.476 83,162 1,575,837 Average Travel Time to Work (min) 16.2 18.2 18.5 Source: ESRI BIS e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 18 Exhibit IC-8 shows the occupations of residents of the Iowa City market areas compared to the state. White collar occupations are more highly represented among Iowa City local and greater market area residents than state residents (70.2% and 66.5% compared to 56.5%), no doubt reflecting the University of Iowa's influence. Service jobs are slightly more highly represented in the local retail market area (17.3%) versus the greater retail market area (15.8%) and state (15.6%). Blue collar jobs are represented at lower levels: they make up 12.5% of local retail market area jobs, 17.7% of greater retail market area jobs and 27.9% of statewide jobs. EXHIBIT IC-B EMPLOYED POPULATION 16+ BY OCCUPATION Iowa City Retail Market Areas and state of Iowa 2007 Economic Sector Local Retail Greater Retail State of Iowa Market Area Market Area White Collar 70.2% 66.5% 56.5% Ma nag ement /Busi ness/Fi n' I 9.5% 11.3% 13.3% Professional 35.5% 31.0% 18.5% Sales 11.2% 10.7% 11.2% Administrative Support 14.0% 13.5% 13.5% Services 17.3% 15.8% 15.6% Blue Collar 12.5% 17.7% 27.9% Farmi ng/Forestry /Fishi ng 0.1% 0.4% 1.1% Construction/Extracti on 3.2% 4.8% 6.5% Insta IIjMai ntai n/Re pair 2.4% 3.5% 4.8% Production 3.1% 4.4% 8.2% Transportation/Mat'l Moving 3.7% 4.6% 7.3% Total Number 47.476 83,162 1,575,837 Source: ESRI BIS According to the Iowa City Area Development Group, major Iowa City area industries include advanced manufacturing of electronics, food and personal hygiene products, life sciences such as biotechnology and bioprocessing, and information solutions, including software, financial, insurance and educational services. Expanding employers include American College Testing, Inc., CIVCO Medical Instruments, Integrated DNA Technologies, Inc. and Owens-Illinois Plastic Products, among others. VISITOR MARKET The visitor market also has a significant influence on downtown Iowa City's business base and is multifaceted. With major events and attractions ranging from sports and arts to University activities and health care facilities, visitors are continually flowing through downtown Iowa City. Visitor counts for selected area attractions appear in Exhibit IC-9. Johnson County ranked fourth of Iowa's 99 counties for tourism expenditures with over $244 million in domestic travel in 2005, based upon the Travel Economic Impact report completed by Travel Industry Association. These travel expenditures are associated with ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 19 almost $43 million in wages and salaries and nearly 3,200 jobs. Further analysis of the impact of visitor spending on retail, dining and entertainment sectors is provided in the Retail Market Analysis chapter (Chapter Three). EXHIBIT IC-9 SELECTED VISITOR ATTRACTIONS, EVENTS & ATTENDANCE Johnson County 2007 Facility/ Attraction Visitor/User Count Iowa Arts Festival 20,000/yr Iowa City Jazz Festival 30,000/yr Marriott conference bookings 2,570 room nights Interstate 80, Exit 242 55,000 overage doily traffic University student orientation 12,000jsummer University athletic events 1.1 million/yr University hospital/clinic patients from outside Johnson County 537,036/yr Source: Marketek, Inc. STUDENT MARKET The University of Iowa student enrollment has grown slowly but steadily in recent years and today stands at nearly 30,000. The majority of students are counted as part of the resident market since the Census registers a person at the address where they spend most of their time. Within the Iowa City local market area, the 20-24 year old age category (highly representative of college students) comprises one-fifth of the total population. Exhibit IC-l 0 estimates the student population not captured in the resident market based on the difference between the local resident population enrolled in a public college or university and the 2007 University of Iowa and Kirkwood Community College enrollment. This analysis indicates an additional 3,653 students who are potential downtown patrons. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 20 2007 Greater Market Area Population 144,244 Percent of Greater Market Area Population in Public College (from 2000 Census) 20.40% Estimated 2007 Population in Greater Market Area Enrolled in Public College 29.426 Enrollment at Univ of Iowa and Kirkwood Community College 33,079 College Students Not Included in Residential Population 3,653 Source: ESRI BIS; University of Iowa; Kirkwood Community College; Marketek, Inc. The student market has an enormous impact on downtown retailers, restaurant and entertainment and on the business mix. Once thought of as simply beer-drinking and broke, college students today are regarded as increasingly attractive markets. Compared to previous generations, college students are spending more than ever before and demand a wide range of products and services. All student spending combined (housing, food, and discretionary goods) represents over $300 billion nationwide. AREA EMPLOYEES Employees working in or near downtown Iowa City are an important captive market for retail and service businesses, as they come to Iowa City on a daily basis throughout the year and are in close proximity to retail, restaurant and service establishments. Market research conducted by the Building Owners and Managers Association of America demonstrates that office workers (as one segment of the workforce) spend between 10 and 15 percent of their expendable income in and near their places of work. A survey conducted by the International Council of Shopping Centers found that downtown workers spent an average of $130 per week during lunch and after work. This survey further revealed that: · The majority of workers (76%) prefer to walk to lunch, up to three blocks. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 21 · The most frequent items purchased by workers include cards, stationery, gifts, drugstore items, books and magazines. · With lesser frequency, workers buy office supplies, jewelry, apparel, accessories, housewares, cosmetics, arts and crafts and items found in galleries. · Many workers (28%) will stop for "after work" activities (drinks, dinner and shopping) when such opportunities are available. Forty-eight percent (48%) of these workers are inclined to come back to the downtown district to eat and shop on weekends. Within a one-mile radius of downtown Iowa City, there are over 1,000 businesses with almost 33,000 employees (Exhibit IC-11). At a two-mile radius, the number of businesses almost doubles (1,983) and the number of employees reaches 53,769. In terms of the types of industry in and immediately surrounding downtown, Services, specifically Education Institutions & Libraries, predominate. In the one-mile area, Education Institutions & Libraries account for 49% of all employees, followed by Health Services which account for 14% of employees. These industries continue to dominate at the two-mile area, making up 33% and 27% of employees, respectively. Retail Trade employees follow Health Services in both areas, making up 11 % of the work force within one mile and 12% within two miles. The ratio of daytime/nighttime population (i.e., workers versus residents) decreases moving away from the downtown, decreasing from 1 .39 within a one-mile area to 1.15 within a two-mile area, demonstrating the commercial nature of downtown. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 22 EXHIBIT IC-ll BUSINESSES AND EMPLOYMENT WITHIN A l-MILE AND 2-MILE RADIUS 2007 1-Mile Area 2-Mile Area Industry Businesses Employees Businesses Employees Agriculture & Mining 1.0% 0.2% 1.7% 0.3% Construction 3.4% 0.8% 5.8% 1.7% Manufacturing 1.0% 0.5% 1.6% 2.6% Transportation 1.8% 0.9% 2.4% 1.3% Communication 0.5% 0.4% 0.5% 0.3% Electric/Gas/W ater /Sa nitary Serv. 0.1% 0.0% 0.2% 0.0% Wholesale Trade 0.9% 0.3% 2.0% 0.9% Retail Trade 24.0% 10.9% 21.4% 11.7% Home Improvement 1.1% 0.3% 1.2% 0.4% General Merchandise 0.2% 0.0% 0.3% 0.5% Food stores 2.1% 1.0% 2.0% 2.0% Auto Dealers, Aftermarts & Gas Stations 1.1% 0.4% 1.5% 0.7% Apparel & Accessories 1.8% 0.2% 1.3% 0.2% Furniture & Home Furnishings 1.7% 0.3% 1.9% 0.3% Eating & Drinking Establishments 8.8% 6.6% 6.8% 5.7% Miscellaneous Retail 7.2% 2.1% 6.4% 1.9% Finance/Insurance/Real Estate 10.5% 2.0% 10.4% 2.1% Banks and Savings/Lending 1.0% 0.6% 1.3% 0.6% Securities Brokers 1.0% 0.1% 1.1% 0.1% Insurance Carriers and Agents 2.1% 0.3% 1.9% 0.4% Real Estate/Holding/Other Investments 6.4% 1.0% 6.1% 1.0% Services 49.2% 76.5% 48.2% 74.1% Hotels & Lodging 0.7% 0.5% 0.8% 0.5% Auto Repair, Services, Parking 2.3% 0.3% 2.7% 0.4% Motion Picture & Amusements 2.9% 1.0% 3.4% 1.4% Health 7.6% 13.8% 9.5% 26.9% Legal 5.3% 0.9% 3.5% 0.6% Education Institutions & Libraries 2.9% 49.4% 2.9% 33.0% Other Services 27.5% 10.6% 25.4% 11.3% Government 6.9% 3.9% 4.8% 2.8% Other 0.7% 3.6% 1.0% 2.2% Total 1,069 32,945 1,983 53,7 69 Daytime/Nighttime Population Ratio 1.39 1.15 Note: Distance is from the intersection of Washington st. and Dubuque st. Source: ESRI BIS ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 23 Appendix l-A: Tapestry Market Segment Descriptions Aspiring Young Families Demographic: Most Aspiring Young Families residents are young, startup families, a mix of married-couple families with and without children and single parents with children. The average family size is 3.13, near the U.S. average. Approximately two-thirds of the households are families, 27% are single-person households, and 9% are shared. Annual population growth is 1.7%, higher than the U.S. growth. The median age is 30.4 years; nearly one-fifth of residents are in their 20s. This market is ethnically diverse. Although most residents are white, other race groups are also represented. Seventeen percent of residents are black, and 16% are of Hispanic origin. Socioeconomic: The median household income is $47,200, and income is derived mainly from wages. The median net worth for this market is $94,300. Approximately 60% of employed residents have professional, management, sales, or office/administrative support positions. Overall, 85% of residents aged 25 years and older have graduated from high school, 35% have attended college, and 22% hold a bachelor's or graduate degree. Residential: Aspiring Young Families neighborhoods are located in the large, growing metropolitan areas primarily in the South and West, with the highest state concentrations in California, Florida, and Texas. Although almost three-fourths of the households are in the South and West, one-fifth of the housing is located in the Midwest. Half of the households are occupied by renters, half by homeowners. Residents live in moderately priced apartments, single family houses, and startup town homes. The average gross rent is approximately $674 per month, just slightly higher than the U.S. average. The median home value is $142,900. Most of the housing units were built after 1969. Preferences: Aspiring Young Families residents spend much of their discretionary income on their children and their homes. They buy baby and children's products and toys and furniture for the home. Electronic purchases include cameras and video game systems. Residents spend time online visiting chat rooms, searching for employment, playing games, researching real estate, and making travel arrangements. They carry multiple life insurance policies. Vacations are likely to include visits to theme parks. Leisure time includes dining out, dancing, going to the movies, and attending professional football games. Other activities include fishing, weight lifting, playing basketball, and watching dramas or horror flicks on video or DVD. Residents listen to urban stations and professional basketball games on the radio. When watching TV, they favor sports, news, and entertainment programs and courtroom TV shows. When eating out, Aspiring Young Families residents prefer family restaurants such as Tony Roma's and IHOP and fast-food establishments such as Checkers and Jack-in-the-Box. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 24 College Towns Demographic: With a median age of 24.5 years, College Towns is the fourth youngest of all the Tapestry segments. Most residents are aged between 18 and 34 years and live in single-person or shared households. One-fourth of households are occupied by married- couple families. The racial profile of this market is similar to the U.S. profile. Three-fourths of the residents are white. Socioeconomic: Education is the key focus of College Towns residents. Approximately 41 % of residents are enrolled in college or graduate school, often at the local college or university. Other residents are on the teaching and research staffs, because many continued to work at the college they attended. Naturally, College Towns residents are educated; 40% of residents aged 25 years and older have a bachelor's or graduate degree. Because many students only work part-time, the median household income of $28,900 ranks near the low end. Fifty-two percent of the employed residents in this market are part-time workers. This segment ranks second to the Dorms to Diplomas segment for the highest proportion of part-time employment. Most of the employed residents work in the service industry, holding on- and off-campus jobs in educational services, health care, and food preparation. The median net worth for this market is $30,700. Residential: One in eight College Towns residents lives in a dorm on campus. Students in off-campus housing live in low-income apartment rentals. Approximately 31% of households are occupied by owners, typically town residents, who live with their families in single family dwellings. The median home value is $132,900. One-third of the housing is single family structures. Preferences: College Towns residents prefer ready-made or easy-to-prepare meals and buy ready-made pasta sauces, frozen pasta meals, pizza crusts, and peanut butter and jelly, usually at the most convenient grocery store. With their busy lifestyles, they frequently eat out or order in from fast-food restaurants, particularly McDonald's, Taco Bell, and pizza outlets during the week; however, many cook at home over the weekend. They purchase books online and in stores. They hold student loans and bank in person or by phone. These computer-savvy students own laptop computers or expensive desktop personal computers and the peripherals to match. Connection to the Internet is important to this segment; they go online to research school assignments, search for employment, and visit chat rooms. Keeping in touch is also important; they purchase cellular phones and accessories as well as prepaid calling cards. New to living on their own, many College Towns residents purchase bedding, bath, and cooking products. They own few appliances but, at a minimum, have a microwave oven, a toaster, and an upright vacuum cleaner. Their lifestyle is very casual. They rank high for participating in nearly every outdoor sport and athletic activity. College Towns residents attend rock concerts and college football games, play pool, and go to movies and bars. They also participate in public activities including fund- raising and volunteer work. They listen to contemporary hit radio, rock, and alternative music. They watch MTV and Comedy Central on cable television. They shop at discount stores but prefer to buy branded apparel from Old Navy and Gap. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 25 Crossroads Demographic: Crossroads neighborhoods are primarily home to married-couple families with and without children and single-parent families. These residents are young, with a median age of 31.9 years. Householders tend to be younger than the U.S. average; half of them are younger than 45 years. The population in this segment is growing more than 1.6% annually, a faster rate than the U.S. population. Eighteen percent of residents are Hispanic. Although 73% of residents are white, other racial groups are represented in this market. Socioeconomic: The median household income for this market is $39,500, somewhat below the U.S. median; the median net worth is $46,000, less than half the U.S. value. Educational attainment levels are lower than U.S. levels; only 36% of residents aged 25 years and older hold a bachelor's or graduate degree or have attended college. Most of the employed residents work in the manufacturing, construction, retail trade, and service industry sectors. Labor force participation is comparable to the U.S. level, but unemployment is slightly higher. Residential: Crossroads communities are growing neighborhoods that are frequently found in small towns throughout the South, Midwest, and West. These small towns provide affordable housing for young families, providing them an opportunity to own their homes. Homeownership is 77%; the median home value is $60,300, much lower than the U.S. median. More than half of Crossroads households are mobile homes; 36% are single family dwellings. Most of the housing was built after 1969. Preferences: Mindful of their expenses, Crossroads households budget for what they buy and choose selectively where to spend their money. They shop at discount department stores such as Wal-Mart and Kmart. Many shop for groceries at Wal-Mart Supercenters. Their priorities are their families and their cars. Children are the focus of their lives, and they buy children's products in addition to groceries. They prefer domestic cars or trucks, commonly buy used vehicles, and handle the maintenance themselves. Investing and saving for retirement are a low priority; many households do not own mutual funds, stocks, or retirement savings accounts. Home improvement projects also rank low. Crossroads residents enjoy watching television, especially cartoon channels for the kids and fishing or NASCAR racing for the adults. They would probably own a satellite dish instead of subscribing to cable. They also like to listen to the radio, preferring country and contemporary hit music to other formats. They read the newspaper less frequently than average U.S. households; however, they read magazines, especially automotive, boating, motorcycle, and fishing publications. They like to fish and go to the movies. Most households have pets such as cats and dogs. Birds are especially popular. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 26 Dorms to Diplomas Demographic: Dorms to Diplomas residents are college students who represent the youngest of all the Community Tapestry segments, with a median age of 21.8 years. Approximately 81 % of residents are enrolled in a college or university. The rest of the population are not students and reside off campus. Approximately 42% of the households share housing with one or more roommates; 38% are single-person dwellings. Ethnic diversity is relatively low for this segment. Approximately 73% of the residents are white and 11% are Asian. Socioeconomic: To support themselves while they attend school, nearly three-fourths of the employed residents work part-time in low-paying service jobs. The median household income for this segment is $17,600; the median net worth is $13,100. Approximately 52% of the residents aged 25 and older hold a bachelor's or graduate degree. The educational institutions at the center of these communities employ many residents, especially in the educational services, accommodation/food services, and retail trade industry sectors. Residential: Approximately 43% of the residents in the Dorms to Diplomas communities live on campus in dormitories; the remainder rent apartments in multiunit buildings off campus. Ninety percent of the households rent. Most of these communities are either urban locations or part of a major campus that is the core of an urban cluster. For the few owner-occupied dwellings, the median home value is $135,100. Preferences: Spending patterns of Dorms to Diplomas residents reflect their carefree lifestyle and their focus on their education. When they do not eat at the dining hall or in one of the nearby fast-food restaurants, they use convenient prepared and frozen foods. Most individuals own or share a refrigerator and microwave. Personal computers are considered a necessity. Internet access is available to all and used frequently to research school assignments, find employment opportunities, make travel plans, and keep in touch with family. Most students also own cellular phones. Aside from the exercise they get from participating in college sports and walking or jogging around campus, they take advantage of gyms on campus. Among their extensive list of activities are attending rock concerts, dancing, going to movies, visiting theme parks, and playing pool. Typical of dorm life, they enjoy spending time with friends each evening watching a sports game or movie or playing board and card games. Although they shop at discount stores regularly, they prefer branded apparel items from Old Navy, the Gap, and Banana Republic. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 27 Enterprising Professionals Demographic: This market is home to young, educated, working professionals. Single or married Enterprising Professionals residents are singularly young, with a median age of 32.4 years. Forty-three percent of households consist of singles who live alone or with roommates. Similarly, 43% of households consist of married-couple families. The number of households in this market is approximately 2% of U.S. households but is one of the fastest-growing markets with household growth of 2.6% annually. The diversity of the population is similar to that of the United States. The majority of residents are white; however, 11 % are Asian (more than two and one-half times the U.S. level). Socioeconomic: Household income exceeds expectations, with a median of $66,000. The median net worth of $150,900 is growing. Ninety percent of Enterprising Professionals households derive income from wages and salaries; 39% have some form of investment income. This is an educated group: 46% of the population aged 25 years and older hold a bachelor's or graduate degree and 30% have attended college. Nine percent are enrolled in college or graduate school. Ranked second of all the Community Tapestry markets for labor force participation at 75%, these working professionals are employed in various jobs, especially management, finance, computer, sales, and office/administrative support occupations. Residential: Enterprising Professionals residents change cities or homes frequently as they seek growth opportunities and go where the jobs are located, especially in major cities such as Chicago, Atlanta, and Seattle. The majority of households in this market are located in the South (46%), West (29%), and Midwest (20%). Residents prefer renting to owning (just slightly) in newer neighborhoods with townhomes or apartments. The median value is $237,900 for owner-occupied homes, and the average gross rent is approximately $894 per month, both higher than U.S. values. Preferences: Their lifestyle reflects youth, mobility, and growing consumer clout. Many carry renter's insurance because they are still renting. Enterprising Professionals residents are connected but still nomadic. They rely on cell phones and PCs to stay in touch and the Internet for everything from finding the next job or home to tracking their investments and buying consumer goods. Favorite sites are barnesandnoble.com and amazon.com. Their thoughtful nature is reflected in their frequent purchases of flowers online and at the florist. They own laptop personal computers, MP3 players, video game systems (preferring Xbox), digital camcorders, and flat-screen or plasma TVs. This is the top market for subscriptions to digital cable service. Enterprising Professionals residents love to take foreign and domestic trips as often as they can. Leisure activities include participating in yoga, playing Frisbee and football, jogging, going to the movies, watching videos or DVDs, and attending horse races and professional basketball games. Residents enjoy reading computer magazines; listening to classical music as well as public, all-talk, and sports radio; and watching bicycle racing and tennis on TV. When eating out, they prefer restaurants such as Cheesecake Factory and Outback Steakhouse. They shop for groceries at Harris Teeter. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 28 Exurbanites Demographic: Exurbanites residents live beyond the urban fringe, preferring open space with affluence. Empty nesters (married couples with no children living at home) comprise 40% of these households, yet married couples with children occupy 32%. Half of the householders are between 45 and 64 years old. Their median age of 43.6 years places these residents directly between paying college expenses and caring for elderly parents. Their lifestage is as important to understanding this market as their lifestyle. There is little ethnic diversity; most residents are white. Socioeconomic: At 66%, labor force participation for the Exurbanites market is above average. Residents are educated: more than 40% of the population aged 25 years and older hold a bachelor's or graduate degree, and more than 30% have attended college. They are also well employed. Approximately half of employed persons hold professional or management positions. The median net worth is $259,000, more than twice that of the national median. The median household income is $83,200. More than 20% of households draw retirement income, and 57% of households receive additional income from investments. Residential: Although Exurbanites households are growing by almost 1.8% annually, these are not the newest neighborhoods. Recent construction comprises only 22% of the housing stock. However, 70% of the housing units were built after 1969. Most homes are single family structures. The median home value is approximately $255,900, more than one and one-half times that of the national median. Exurban living is not supported by public transportation. Nearly 80% of households own at least two vehicles. The average travel time to work for this market is comparable to the U.S. average. Preferences: Because of their Iifestage, Exurbanites residents focus on financial security. They consult with financial planners; have IRA accounts; own shares in money market funds, mutual funds, and tax-exempt funds; own common stock; and track their investments online. Between long term care insurance and substantial life insurance policies, they are well insured. Many have home equity lines of credit. Exurbanites residents work on their homes, lawns, and gardens. To enhance their properties, they purchase garden and lawn care products, shrubs, and plants. Many home improvement tasks, such as interior or exterior painting, are accomplished by a household member, although contractors are hired for some work. They own all kinds of tools, such as saws, sanders, and wallpaper strippers, to help them complete their projects. Leisure activities include boating, hiking, kayo king, playing Frisbee, photography, and bird-watching. Exurbanites residents travel, typically within the United states, and enjoy hiking, playing golf, and visiting national parks on vacation. They listen to public radio and donate to PBS. Participation in civic activities includes addressing public meetings and doing volunteer work. Many are members of fraternal orders and charitable organizations. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 29 Green Acres Demographic: Married couples, with and without children, comprise 71 % of the households in Green Acres. Many families are blue-collar baby boomers, many with children aged 6-17 years. With more than 9.3 million people, Green Acres represents the third largest population of all the Community Tapestry markets, currently more than 3% of the U.S. population, and growing by 1.6% annually. The median age is 39.9 years. This segment is not ethnically diverse; 94% of the residents are white. Socioeconomic: Green Acres residents are educated and hardworking; more than half who are aged 25 years and older hold a degree or attended college. Labor force participation is approximately 69%, with higher employment concentrations in the manufacturing, construction, health care, and retail trade industry sectors. Seventeen percent of households derive income from self-employment ventures. Occupation distributions are similar to the United States. The median household income is $62,300, and the median net worth is $151,500. Residential: Green Acres neighborhoods are located throughout the country but mainly in the Midwest and South. The highest state concentrations are found in Michigan, Ohio, and Pennsylvania. A little bit country, Green Acres residents live in pastoral settings of developing suburban fringe areas. Homeownership is at 88%. Eighty-seven percent of the household inventory is dominated by single family dwellings. These newer homes carry a median value of $179,700. Typical of rural residents, Green Acres households own multiple vehicles: 78% own two or more vehicles. Preferences: Country living describes the lifestyle of Green Acres residents. Pet dogs or cats are considered part of the family. These do-it-yourselfers maintain and remodel their homes; projects include painting, installing carpet or insulation, or adding a deck or patio. They own all the necessary power tools, including routers, welders, sanders, and various saws, to finish their projects. Residents maintain their lawns, flower gardens, and vegetable gardens, again with the right tools. They own riding lawn mowers, garden tillers, tractors, and even separate home freezers for the harvest. Fitting in with the do-it- yourself mode, it is not surprising that Green Acres is the top market for owning a sewing machine. A favorite pastime is using their ice cream maker to produce homemade ice cream. They prefer motorcycles and full-size pickup trucks. For exercise, Green Acres residents ride their mountain bikes and participate in water sports such as waterskiing, canoeing, and kayaking. Other activities include bird- watching, power boating, target shooting, hunting, and attending auto racing events. They prefer to listen to college football, NASCAR auto racing, and news-talk programs on the radio and read fishing, hunting, and motorcycle magazines. Accommodating the country lifestyle, many households watch TV by satellite dish instead of cable. Events they enjoy watching on TV include alpine skiing, ski jumping, motorcycle racing, equestrian events, and bicycle racing. A favorite station is the Speed Channel. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 30 In Style Demographic: In Style residents live in the suburbs but prefer the city lifestyle. Professional couples predominate. Household distributions by type are similar to those of the United states. Married-couple families represent 54% of households. Households without children (married couples without children, single-person, shared, and other family types), comprise more than two-thirds of all households. This count is increasing. The population is slightly older, with a median age of 39.3 years. There is little racial diversity in this market. Socioeconomic: In Style residents are prosperous, with a median household income of $67,800 and a median net worth of $186,600 (more than one and one-half times that of the national median). Wages and salaries provide income for 84% of the households; 47% also receive some form of investment income. In Style residents are more educated compared to the U.s. level: nearly 40% of the population aged 25 years and older hold a bachelor's or graduate degree, and 31% have attended college. At 70%, labor force participation is above average, and the unemployment figure of 4% is low. Forty-five percent of employed residents have professional or management positions, with above average concentrations in the finance, insurance, technical services, and education industry sectors. Residential: In Style residents live in affluent neighborhoods of metropolitan areas, scattered all over the country. More suburban than urban, they nevertheless embrace an urbane lifestyle; many prefer townhomes (14% of households) to traditional single family dwellings (56% of households). The median home value is $231,800. Homeownership is just slightly above average at 72%. More than three-fourths of the housing units were built in the last 30 years. Preferences: Computer savvy, In Style residents use the Internet daily. Online activities include obtaining information about real estate, new or used cars, medical, general news, or sports; tracking investments; trading stocks; making travel arrangements; and buying computer hardware or software, clothes, toys, and concert or sporting events tickets. They use a financial planner and invest in stocks, bonds, money market funds, money market bank accounts, and securities. Looking toward the future, residents have long term care and universal life insurance and contribute to IRA and 401 (k) retirement accounts. To maintain their homes, they hire professional household cleaning services and contractors. To keep fit, residents exercise, follow a healthy diet method for weight control, buy food specifically labeled as low fat, and take vitamins. They enjoy going to the beach, snorkeling, playing golf, and casino gambling. They favor domestic travel and keep golf in mind when choosing a vacation destination. In Style residents read boating, business, and finance magazines and listen to news-talk, classical, and alternative radio formats. TV viewing includes bicycle racing, ski jumping, and golf, so it is not surprising that the Golf Channel is a favorite cable station. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 31 Metropolitans Demographic: Metropolitans residents favor city living in older neighborhoods. Approximately half of the households are composed of singles who live alone or with others. However, married-couple families comprise 40% of households. Compared to the United states, there is a higher proportion of residents aged 20-34 in this market. The median age is 37.1 years. Diversity is low; a white population dominates. Socioeconomic: At 71%, labor force participation is well above average; the unemployment rate of 5% is below average. Metropolitans residents are educated: 75% of the population aged 25 years and older have attended college or completed a degree program; 28% hold a bachelor's degree, and 21% have a graduate degree. Half of employed persons hold professional or management positions. The median household income is $57,600. Nearly half of the households earn income from interest, dividends, and rental properties. The median net worth is $134,500. Residential: Metropolitans neighborhoods are distributed throughout the country in an eclectic mix of single family homes and multiunit structures. Three-fifths of the housing units were built prior to 1960. These neighborhoods are slow to change; annual household growth is less than 0.8%. The homeownership rate is 63%; the median home value is $194,100. Preferences: Owners of older homes have maintenance and remodeling costs; Metropolitans residents are no different. They are more likely to hire a contractor for home repair or remodeling work than to do the work themselves. They would also probably use a lawn maintenance service or professional household cleaning service. Owning or leasing a station wagon is common. Residents plan for the future, owning shares in various investment funds, contributing to IRA savings accounts, and holding large life insurance policies. Metropolitans residents pursue an active, urbane lifestyle. They travel frequently, personally and for business. They listen to classical music and jazz as well as public and newstalk programs on the radio. Leisure activities include going to museums and zoos, watching foreign films on video or DVD, and reading epicurean magazines. Refinishing furniture and playing a musical instrument are favorite hobbies. Exercise includes yoga, roller-blading, and hiking/backpacking. Metropolitans residents are members of civic clubs and participate in numerous CIVIC activities such as volunteering for environmental causes, addressing public meetings, and working for a political party or candidate. They also belong to business clubs and contribute to PBS. Preferring to own and use a laptop computer, commonly an Apple, they use the Internet daily, especially to order books, airline tickets, CDs, and clothes. They also order many items over the phone or through the mail. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 32 Urban Chic Demographic: Urban Chic residents are professionals who live a sophisticated, exclusive lifestyle. More than half of these households are married-couple families, similar to proportions in the United states. Fewer than half of them have children. Unlike the United states, there is a smaller proportion of single-parent families and a higher proportion of single-person and shared households. The population is slightly older, with a median age of 41.4 years, and the diversity is slightly below average compared to the United states. Socioeconomic: A median household income higher than $84,800 and a median net worth of approximately $262,700 enable the Urban Chic segment to live a stylish lifestyle. The population is well educated: more than half of the residents aged 25 years and older hold a bachelor's or graduate degree. They pursue a variety of occupations, especially management, professional, and sales positions, in industry sectors such as scientific and technical services, educational services, and health care. One-fifth of these households earn income from self-employment ventures, and 55% receive additional income from investments. Residential: Urban Chic neighborhoods parallel the United states for housing type and ownership. The setting is urban, and homes range from pre-World War II to post-2000, high-rise to single family. Sixty-three percent of houses are single family dwellings; 27% are apartments in multiunit structures. Homeownership is at 70%. Median home value is $633,000, more than three and one-half times that of the U.s. median. Major concentrations of Urban Chic households are found on the coasts of northern and southern California and along the East Coast. Preferences: Urban Chic residents focus on lifestyle more than ambience. They travel extensively, visit museums, attend dance performances, shop at upscale establishments, and do volunteer work. They are more inclined to buy dress clothes than casual wear, but they purchase apparel for various pursuits such as running, hiking, golf, and skiing. In addition to buying foods specifically labeled as natural or organic, they take a multitude of vitamins and dietary supplements. They prefer imported vehicles, but domestic wine, and truly appreciate a good cup of coffee. The busy, computer-savvy Urban Chic residents are connected. They not only use PCs extensively, but they also read the manuals. They access the Internet to arrange travel; check their investment portfolios; trade stocks; and purchase books, clothes, flowers, and tickets for concerts and sporting events. They own stock worth $75,000 or more; use stock rating services; and own shares in tax-exempt funds, mutual funds, and money market funds. Urban Chic residents are one of the Community Tapestry top markets for listening to classical music, all-talk, and public radio. They are avid readers of newspapers and books. When reading magazines, they favor airline, epicurean, travel, and fashion publications. TV viewing is not as prevalent in this market, but they have their favorite shows such as NOVA, Gilmore Girls, and Alias. Favorite cable stations are Bravo and the Independent Film Channel. e lI'Iar...ete... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 33 Young and Restless Demographic: Change is the constant for Young and Restless households. This young, on-the-go population has a median age of 28.9 years. Slightly more than one-half of them are younger than 35. Fifty-nine percent of these households are either single person or shared. Neighborhoods are diverse. Sixty percent of the residents are white; however, there is an above-average representation of other cultures including 19% who are black, 8% who are Asian, and 18% who are Hispanic. Socioeconomic: The median household income is $40,900, and the median net worth is $87,000. Although the median household income is below the U.S. median, because only 23% of these households include children, discretionary income is higher than for segments with similar income levels. Young and Restless is an educated market; one-third of residents aged 25 years and older hold a bachelor's or graduate degree and another one-third have attended college. Thirteen percent are enrolled in college or graduate school. Career is a common element shared by these ethnically diverse residents. Both men and women participate in the labor force at much higher rates than the U.S. rates. The 75% labor force participation rate is the highest among all the Community Tapestry segments; the female labor force participation of 73% is also the highest. Most employed residents work in professional, sales, service, and office/administrative support positions. Residential: Young and Restless neighborhoods are found in metropolitan areas, almost entirely in the South (56%), West (23%), and Midwest (19%). The state with the highest concentration is Texas. Householders are primarily renters who live in multiunit buildings. Because 85% of the households rent, this segment is ranked fifth for the highest percentage of renters among all the Community Tapestry segments. Most of the housing units were built in the 1970s and 1980s. This market is mobile; 85% of the householders have moved in the last five years. Career pursuit affects their decision of where to live. Preferences: These young, single professionals are pursuing their careers and living a busy lifestyle. They are technologically savvy and take advantage of the convenience provided by many products and services. Young and Restless residents rely on the Internet to communicate with friends and families, shop, bank, and look for new employment opportunities. They enjoy the convenience of cell phones, voice mail, and other phone services. They read magazines to stay current on the latest lifestyle and entertainment trends and are just as likely to read a music magazine as a business publication. They do not read the newspaper as much as the general population. Television viewing is average. Radio is a good way to reach them; favorite formats are contemporary hit and urban. Seeing movies at theaters and on videos is a major source of entertainment. They also enjoy going to bars or nightclubs. Their busy schedule also includes working out at the gym and playing various sports. Domestic vehicles have a slight edge in this market. These residents are one of the more politically liberal segments. Some are still paying off school loans. Many have not yet begun saving for retirement or contributing to investments. ell'lar...ete.... RETAIL TARGET MARKETS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 34 CHAPTER 2 OPINION RESEARCH SURVEYS In June and July 2007, two surveys were conducted to reach target audiences key to strengthening the retail base of the downtown business district: 1. a consumer survey aimed at area residents, university students and employees; and 2. a business owners/operators survey. Area residents, employees and businesses were urged via newspaper feature stories and chamber of commerce publicity to help shape the future of downtown Iowa City by completing an on-line survey. Facebook advertisements targeted University of Iowa students. In addition, hard-copy surveys were made available to those without computer access. The primary objective of this research is to gain an understanding of the perceptions, needs and motivations of local shoppers and businesses. Surveys were augmented with seven downtown business, property owner and other stakeholder focus groups, over 30 in-store visits/interviews with business owners, and an interactive town hall meeting held during the May 28-31 site visit. Over 100 persons participated in all. Telephone interviews were also conducted with approximately ten business owners. Detailed results of the surveys are provided in Appendices 2-A and 2-8. Survey, interview and focus group findings are summarized below. A. Consumer Survey · There were 1,196 respondents to the consumer survey. · Seventy percent (70.1 %) of respondents reported doing most of their non-grocery shopping at the Coral Ridge Mall, while 20.9% do most of their non-grocery shopping in downtown Iowa City. · The most common reasons cited for shopping choice were convenience and the availability of a wide selection of goods. Price was the third most important factor influencing shopping preference. · When people chose to shop in Iowa City, their primary reasons were to support local businesses and the convenient location. The major disadvantages of shopping in Iowa City were lack of parking and poor selection of goods/services. Respondents also felt stores downtown have high prices. · The kinds of merchandise most frequently cited as being needed in Iowa City were women and men's casual apparel, shoes, home goods such as linens, towels and kitchen items, furniture and electronics. · The kinds of leisure/ entertainments services that topped the list were a movie theater, concerts/live music and a bowling alley. · Tailoring/alterations and a pack & mail center were the top requested personal/business services. · The type of restaurants most frequently demanded were a healthy/natural food, baked goods and seafood. Other popular choices were dinner theater, family restaurants and tea rooms. e lI'Iar...ete... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 36 · When asked if they would consider living in high quality housing if it were available in downtown Iowa City, respondents were evenly split. Forty-two percent (42.1 %) answered "no" and 41.5% answered "yes." Of those who answered yes, the majority preferred to own 2- or 3-bedroom homes. · The qualities of Iowa City dearest to its residents are its unique shops, restaurants and entertainment offerings and the lively, friendly atmosphere of the pedestrian mall. B. Business Owner Survey · The survey generated responses from 32 Iowa City business owners, 68.8% of whom have been in business for more than ten years. · No uniform business hours can be identified from the survey. Thirty-six percent (35.5%) of the businesses operate from Monday to Friday, while another 35.5% are open Monday-Saturday. · More than half (51.6%) of the businesses identified Johnson County as their primary market area. Twenty-nine percent (29.1 %) selected Iowa City as their primary market area. · Improvements to businesses during the last two year were made by all but two respondents. Of these, 19 (63.3%) involved financial investment. The amount of investment varied widely, ranging from $2,000 to $30 million. The median investment was $30,000. · Over a third (38.7%) of the businesses reported moderate growth in their business and 9.7% saw rapid expansion. Twenty-two percent (22.6%) experienced a decline in sales. The remaining businesses had stable business levels over the past two years. · Twenty-nine percent (29.0%) of businesses expressed the intention to expand their business during the next year and half (54.8%) plan to operate on the same level. One business intends to reduce operations. · The factors cited by more than 30% of the respondents as most effecting the success and expansion of their businesses were foot traffic, public access and qualified labor. The three greatest obstacles to success were parking, the cost of rent/property and insufficient customer traffic. · The kind of assistance most desired by business to improve their success was in marketing and advertising. Almost two-thirds of those responding indicated interest in participating in a joint marketing program. · When asked what qualities downtown Iowa City should maintain in the face of change, the consensus was to maintain the friendly, exciting atmosphere of the pedestrian mall. Also of notable interest were the mix of unique shops, restaurants and entertainment, the Friday night concert series and other events and the physical appearance of downtown and its historic buildings. ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 37 · Businesses identified the following improvements for downtown: the convenience and cost of parking for employees and shoppers and the mix of shops, restaurants and bars. · The future image seen as most desirable was of an exciting downtown where university students mix with local residents to enjoy a unique variety of specialty shops, cafes, fine dining and arts and entertainment offerings. The following table identifies goods and services for which 30% or more of consumer survey respondents expressed an interest. EXHIBIT OR-l SUMMARY OF TOP RANKED SHOPPING NEEDS AND INTERESTS Computers & Accessories Electronics Linens & Towels Furniture Appliances Women's Casual Apparel Women's Business Apparel Men's Casual Apparel Shoes Bakery Hardware Groceries Concerts/Live Music Movie Theater Dinner Theater Bowling Video/ DVD Rental Car Wash/Detailing Tailor/Alterations Dry Cleaner/Laundry Computer Repair Pack & Mail Copy Center Seafood Restaurant Family Restaurant Healthy/Natural Restaurant FOCUS GROUPS The seven focus groups were organized into the following categories: Business Owners, Property Owners, Economic Development, University, Creative Economy Cluster, Tourism/Entertainment, and Real Estate/Development. The Commercial Competitive Assessment incorporates many participant comments. However, other significant comments are highlighted below. The groups were asked to identify key opportunities or strengths that downtown Iowa City should build upon toward future success, issues and challenges it must address and a series of questions regarding future vision and interests for downtown. Downtown opportunities and current strengths · Community leaders want to strengthen downtown's business mix · Iowa City and downtown's economy is tied to the University and hospitals and is somewhat insulated from economic fluctuations of the state or nation · High density, non-student housing · Boomers are returning or retiring here · Arts and culture are core strengths · University draws creatives, youth, vitality ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 38 · Cross-marketing and joint promotions needed · Outdoor seating/cafes a very positive move Challenges/Issues for downtown · The rapid expansion of Coralville directly impacts Iowa City · Downtown boundaries are pushing out north and south · The plethora of bars downtown is a concern for all · Perception of parking problem is a repeated concern · Downtown has been unable to attract office professionals · City Hall not viewed as 'business-friendly' or responsive; EX: simple but important issues like snow removal need to be addressed · High rents challenge newcomers and entrepreneurs to find suitable location · Loitering/panhandling on the rise without a clear policy on how to address · Fa<;ade improvements and ongoing beautification are needed, flowers, etc. Downtown business mix observations · Highly eclectic mix serving diverse markets - students, faculty, community · Healthy supply and mix of restaurants · Targeted tenant/business location · Voids-movie theater, middle market Keys to downtown success · More retail on ground floor · strong leadership and commitment · Long term vision · Unified voice about the vision · Continuous, focused marketing Downtown's unique market position · Arts and entertainment destination for the region-significant quantity of quality cultural venues · More unique development and unique businesses will strongly position downtown · More upscale one of a kind boutiques than elsewhere · Specialty goods-- things you can't find in other places · Locally-owned and operated, not 'anywhere USA' Geographic market area · Businesses routinely pull from Cedar Rapids and Quad cities Market needs · More food and entertainment · Music store · Consider national retailers as anchors · Athletic/recreation apparel and accessories · Accommodate both middle and high income targets ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 39 TOWN HALL MEETING SUMMARY The May 29 community meeting attracted over 50 people and generated a lively discussion about Iowa City and downtown. The prime topics and responses are summarized below. What are the Characteristics and Attributes of Iowa City? Participants characterize Iowa City as a vibrant, well-educated, diverse, open-minded and tolerant community. They identify their walkable downtown with locally-owned businesses, art and cultural opportunities, downtown neighborhoods and the University of Iowa and Iowa River. other attributes identified include: · Historic yet growing · Cosmopolitan · Different than Coralville · Knowledgeable consumers · Cares for senior citizens · Older buildings that ooze character What Makes Iowa City Unique? Responses show that Iowa City's relationship with the University of Iowa campus and its "big city" feel are major factors that make it unique. Iowa City is characterized as a place where the community is caring and involved, with excellent medical facilities and special needs services. The downtown, the surrounding neighborhoods and the diverse groups of people living there make Iowa City unique. Other responses include: · Utopia · Easy place to live · Ties to the literary community · Opportunity · A place where anyone can live What Do Outsiders Say About Iowa City? Positive perceptions of Iowa City are that it is Iowa's best kept secret, with a safe, friendly atmosphere where there is always something going on. Negative perceptions included that it is too liberal, lacks direction and that the University of Iowa receives too much funding from the state with few results. Other responses include: · Great place - not what I thought Iowa was like · They're jealous · Liberal, diverse, integrated economically, great architecture, expensive ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 40 What are Perceptions of Downtown Iowa City? Perceptions about downtown Iowa City run along two lines. The first emphasizes the excitement and energy created by downtown's pedestrian mall, independent shops, farmer's market, library, Englert Theater and the variety of artistic and cultural activities. Perceptions of Iowa City at night are less favorable, focusing on the numerous bars crowded with students, panhandlers, litter and safety issues. Other comments are that the downtown living and shopping is expensive and that stores lack merchandise to meet basic needs. Other responses include: · Could be safer · Hang out for many types of people · Friendly, thoughtful, progressive community - open and accepting What are Downtown's Best Opportunities? Respondents most frequently identify medium-priced condos and apartments (i.e., higher-quality than student housing but not luxury) and more specialty retail as opportunities for the downtown. A grocery store and increased pedestrian, biker and mass-transit facilities are also opportunities mentioned by several respondents. Other specific responses include: · Art house movie theater · Indoor play area · 24-hour restaurant or coffee shop · store front renovations · More hotels · Entertainment for adults · Kids and women's clothing, hardware store · University of Iowa China or Middle East Institute What's Going Well in Downtown Iowa City? Downtown dining, shops, arts, entertainment and special events and festivals are popular examples of what is going well in downtown Iowa City. The pedestrian mall and the vibrant, diverse street life it attracts are also identified as pluses for the downtown. Other responses include recent private investment, new developments such as the Vetro and the Vogel House, improvements at Old Capitol Mall and a growing economic vibrancy. Other responses include: · Growth of interest in the past 15 years · University proximity; Parents of students and campus visitors · Park and shop · Interstate 80 · Downtown offices and courthouse · Affluent population ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 41 Share Your Big Ideas for Downtown Iowa City Popular big ideas for downtown Iowa City include more residential options for non- students, more unique art stores and specialty retail stores, a grocery store and an increase in architectural diversity. Several responses deal with improvements in transportation - increased pedestrian safety, free parking and Iowa City as a regional hub for light rail. A small business incubator, literary museum and rooftop gardens were other ideas. other responses include: · More green or LEED energy efficient building; More sustainable energy and growth · Preservation of historic character mixed with redevelopment of some non-historic properties · Hotel Jefferson renovated for loft apartments · Make Washington Street two way · Redevelop US Bank corner parking lot · Expansion of downtown to Court Street South ell'lar...ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 42 responses) ,196 owe City Consumer Survey Results (1 Appendix 2-A SHOPPING HABITS ETC.)? FURNISHINGS, SPORTING GOODS, HOME (E.G.. APPAREL, other nterne WHERE DO YOU DO MOST OF YOUR NON-GROCERY SHOPPING CHECK UP TO TWO RESPONSES. (1,189 respondents) non-grocery of their Most (70.1 %) of respondents do most shopping at Coral Ridge Mall. 1 Mai I Order Moines Des shopping are (22.9%) and other popular destinations for non-grocery the Internet (30.9%), Sycamore Mall Downtown Iowa City (20.9%). 2. Cedar Rapi ds Sycamore Ma Coral Ridge Ma Six percent (6.1 %) of respondents reported doing most of their non-grocery shopping in Des Moines and 5.0% identified Wal-Mart, Target and Kmart as other frequent destinations. 3. 000 800 400 600 Number of Responses 200 o Downtown Iowa City (1.190 respondents) The most common influences on shopping choice are Convenience (65.9%) and Selection (65.1%) WHAT ARE THE PRIMARY REASONS FOR SHOPPING WHERE YOU DO? PLEASE SELECT YOUR TOP THREE REASONS . this A large portion also cited Price, with 40.7% ranking as a primary reason . Many survey respondents commented on the lack of free parking available in downtown and cited a diminished selection of retail goods there . I I I I I I I I I I I other Service Selection Quality Price Loyalty Familiarity/Habit Convenience 2. 0 100 200 300 400 500 600 700 800 900 Number of Responses e; fIIa,......ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 43 N IOWA CITY WHAT TYPES OF SPECIALTY MERCHANDISE DO YOU THINK ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (940 respondents) SHOPPING NEEDS 3. both these goods and Music & CDs, expressing a need for acking by 31.3% of respondents, followed by Sporting Goods with 35.2% of respondents (33 number of responses Computers & Accessories were identified as picked by about 27% of respondents the highest had Electronics . . other Toys & Hobbies Quality Consignment Music & CD's Electronics Fabric/Sewing Supplies Sporting Goods Pet Supplies Luggage Gifts & Cards Auto Supplies Galleries Computers & Accessories Crafts/Handmade Items Cameros & Supplies Books Beauty Supplies Art & Craft Supplies @fIIa,......ete.... ty merchandise category and was picked by only 5.2% of respondents I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I : I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I specia popular was the least supplies Auto . 0 20 40 60 80 100 120 40 60 80 200 220 240 260 280 300 320 340 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 44 4. WHAT KINDS OF HOUSEHOLD FURNISHINGS ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (854 respondents) . Over half of respondents (56.9%) identified Furniture as lacking in selection. Linens & Towels elicited the second largest number of responses at 49.4% of respondents. . Appliances, Garden Supplies, Lighting and Antiques were noted as lacking by between 32.4% and 21.1 % of respondents. . Respondents noted the need for affordably priced kitchen and home goods and furniture in the Iowa City area I I I I I I I 00 200 300 400 500 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 45 o Ot her Lighting Garden Supplies Linens & Towels Appliances Furniture Antiques @fIIa,......ete.... OWA WHAT KINDS OF APPAREL STORES ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE CITY AREA? CHECK ALL THAT APPLY. (914 respondents) 5. respondents were also popular apparel needs, listed by 48.0%, 46.2% and 32.9% of % of .1 need and were reported by 58 Business s Women's and Men's Casual Clothing and Women respondents, respectively. common appare were most Shoes . . listed as needs by a quarter of respondents Specialty apparel were s and Women Teen/Young Adult . . Respondents also emphasized other Jewelry Shoes Teen/Young Adult Children & Infants clothing the need for affordably-priced apparel as opposed to more expensive boutiques 's menswear and piUS size women the need for big and ta noted respondents Severa . I I I I I I I I I I I I I I I I I I I I Men's SpecialTY Business Casua nes Women's S pecia Bus , s 's 's Men Men Women Cas ua , s Women 50 5 450 400 350 300 250 200 50 00 50 o 46 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE Number of Responses OPINION RESEARCH @fIIa,......ete.... WHAT KINDS OF CONVENIENCE MERCHANDISE ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (827 respondents) 6. Bakery needed type of with 63.9% of Baked goods were the most convenience merchandise, respondents listing them . 00 150 200 250 300 350 400 450 500 550 Number of Respondents Groceries Groceries followed and were needed by over half of respondents (55.1 %). Pharmacy A Hardware store garnered support from 32.0% Hardware of respondents and a pharmacy from 17.4%. Several people mentioned the need for a Building Supplies specialty food store such as Trader Joe's. other 0 50 . . . WHY WHY OR N DOWNTOWN IOWA CITY, WOULD YOU? LISTED IN QUESTIONS 3 THROUGH 6 IF YOU WERE ABLE TO BUY THE ITEMS NOT? (820 respondents) 7. if they were available In through 6 3 items listed in Questions they would buy said question, 57.4% this Of respondents answering downtown Iowa City. . work and a desire within walking distance of home or it is Reasons cited for shopping downtown include convenience because for an alternative to shopping at the mall or big boxes . 47 rking, lack of selection and high prices as ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE the lack of free pa OPINION RESEARCH favor of shopping downtown cited Those who were unsure or not in deterrents. @fIIa,......ete.... . BE GREATER SELECTION IS NEEDED AND WOULD N IOWA CITY WHAT KINDS OF LEISURE/ENTERTAINMENT SERVICES ARE LACKING SUCH THAT SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (835 respondents) SERVICE NEEDS 8. the Iowa City area service in Half of respondents (50.7%) reported a Movie Theater as the most needed leisure/entertainment Respondents frequently specified an interest in an independent movie theater in the downtown. . respectively respondents identified by 39.9% and 37.7% of third ng were second and Concerts/Live Music and Bow . and outdoor ndoor play areas museum or s more restaurants a children popular entertainment service needed was other needs listed by respondents included children's activities such as activities such as a mini golf course or an ice skating rink The fourth most . . I I I I I I I I I I I I I I I I I I , other ndoor Recreation Outdoor Recreation Concerts/Live Music Galleries Live Theater Movie Theater Bowling Exercise studio/Gym Restaurant 450 400 350 0 50 100 50 200 250 300 N umber of Responses 48 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... WHATE KINDS OF GENERAL SERVICES ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (581 responses) 9. it dentified by 34.1 % and 30.3% of respondents listing % of services .1 with 35 needed the Iowa City area third most second and listed service need in the Wash/Detailing were was the most frequently and Ca respectively Video/DVD Renta respondents, Computer Repair . . service needs I I I I I I I I I I I I I I I I I I I I I I and Computer Training were other popular other -Hour Photo Dev. Video/DVD Rental Gasoline/Auto Repair Computer Training Day Care ng Repair Appliance Repa Wash/Detai Computer Day Care, Appliance Repair Car . 49 ANALYSIS 225 DOWNTOWN IOWA CITY MARKET NICHE 200 0 25 50 75 00 25 50 175 N umber of Responses OPINION RESEARCH @fIIa,......ete.... GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE I I I LACKING SUCH THAT (519 respondents) by needs as 10. WHAT KINDS OF PERSONAL SERVICES ARE IOWA CITY AREA? CHECK ALL THAT APPLY seen were Tailoring/Alterations services 68.2% of respondents other Tailoring/ Alterations Hair/Beauty Dry Cleaner/Laundry the second most almost half of listed by service need were from Dry Cleaning/Laundry services popular, garnering support respondents (45.9%). additiona Shoe Repair was an several respondents . . . 400 300 00 200 Number of Responses o LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE (236 respondents) WHAT BUSINESS/PROFESSIONAL SERVICES DO YOU THINK ARE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. 11 A Pack & Mail store and a Copy Center were the two most popular responses, selected by 44.1 % and 34.8% of respondents, respectively . 3% 2- selected by were each Remaining categories of respondents. . I I I I I I I I I I I I I , other Legal/Accounting Pack & Mail Copy Center nsurance Bank/Financial Advice 20 20 40 60 80 100 Number of Responses o 50 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... IN YOUR OPINION, WHAT TYPES OF RESTAURANTS AND EATING PLACES ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? CHECK ALL THAT APPLY. (884 respondents) 12. respondents and was selected by 42.7% of needed restaurant A Bakery was the most . -42% of respondents picked by 4 choices, popular restaurant third most the second and food and Seafood were Healthy /Natura . food Fine Dining and Grilles talian Vietnamese restaurants Mexican restaurants Greek, Thai or Steakhouses such as other needs listed by respondents Included authentic ethnic food other than pizza and breakfast food. Delis Tea Rooms were Family Dining choices frequent Additiona . . more affordable dining options I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~ I I I I I I I I I I I I I , , , other Tea Room Fine Dining Dinner Theater Cafeteria steakhouse Mexican Del Healthy/Natura Seafood Fast Food Coffee House Pizza/ltalla Grill Fami Chines noted a desire for Respondents . Baker 51 ANALYSIS 00 DOWNTOWN IOWA CITY MARKET NICHE 350 300 Number of Responses OPINION RESEARCH 250 200 50 00 50 o @fIIa,......ete.... WHAT HEALTH SERVICES DO YOU THINK ARE LACKING SUCH THAT GREATER SELECTION IS NEEDED AND WOULD BE SUPPORTED IN THE IOWA CITY AREA? (350 respondents) 13. Forty percent (40.3%) of respondents thought Homeopathic/Naturopathic health services are lacking in the Iowa City area . of picked by 40.0% second was Care General Health respondents. . be thought to respectively Dental and Chiropractic services were lacking by 27.7% and 21.75 of respondents . General Health Core Vision Core Hospice Homeopat hie/Not uropat hie Dental Chiropractic 50 25 00 Number of Responses 75 50 25 o N DOWNTOWN IOWA CITY, WOULD YOU? WHY OR use the services listed in Questions 8 through 3 in 13 N QUESTIONS 8 THROUGH THE SERVICES IF YOU HAD THE OPTION OF USING WHY NOT? (644 respondents) 14. they would that Of the 644 respondents to Question 14, 70.3% answered downtown Iowa City if they were available . the support to convenience, a desire work, to home or Common reasons for using downtown services included proximity downtown and an enjoyment of the downtown ambiance . 52 the DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS finding parking, parking costs the downtown cited difficulty OPINION RESEARCH n who were unsure about or against using services of students and the numerous bars as deterrents. Respondents high number @ fIIa,.....ete... . SHOPPING AND PERSONAL BUSINESS PREFERENCES 15. CURRENTLY, WHAT ARE THE MAJOR ADVANTAGES OF SHOPPING OR DOING PERSONAL BUSINESS (E.G., BANKING) IN DOWNTOWN IOWA CITY? PLEASE CHECK THE TOP THREE. (889 respondents) . Supporting local businesses is the greatest advantage of shopping and doing personal business in downtown Iowa City, according to 74.5% of respondents. . About half of respondents noted that downtown stores have convenient locations and are within walking distance . Friendly service is a draw to downtown for 27.9% of respondents. . Other responses included the downtown atmosphere and public transit access. I I I I I I ~ I =::J I 53 ANALYSIS 675 DOWNTOWN IOWA CITY MARKET NICHE 0 75 150 225 300 375 450 525 600 Number of Responses OPINION RESEARCH other Know the store Employees Selection of Goods/Services Wit hin Walking Distance Less Traffic & Crowds Support Local Businesses Easy to Find Parking Friendly Service Fair Prices Convenient Location @fIIa,......ete.... N DOWNTOWN BANKING) 16. CURRENTLY, WHAT ARE THE MAJOR DISADVANTAGES OF SHOPPING OR DOING PERSONAL BUSINESS (E.G. IOWA CITY? PLEASE CHECK THE TOP THREE. (919 respondents) cited by 65.4% of n downtown and was shopping or to doing business one disadvantage the number is A lack of parking respondents to doing A poor selection of goods/services and high prices are the second and third most frequently listed disadvantages business in downtown, followed closely by limited business hours, all listed by just under half of survey respondents. . . dirty students to cOllege catering the many bars nCluded respondents other disadvantages to going downtown listed by sidewalks, poor selection of goods and parking costs. . I I 1 I I I I 00 200 300 400 500 600 700 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 54 o other nconvenient Location Unfriendly/Poor Service Traffic Limited Hours Lack of Parking High Prices Poor Selection of Goods/Services Poor Appearance @fIIa,......ete.... stores expanding sales or having respondents) by lowering prices stores (847 their 17. WHAT CAN DOWNTOWN MERCHANTS DO TO IMPROVE THEIR STORES? could improve merchants that of respondents said mproving selection half and About hours . followed by respondents, mproved advertising and promotion was the fourth most frequent suggestion, selected by 28.3% of improving appearance and customer service, each selected by 17% of respondents. . the n stores number of the ng ncreasi and the evenings n other responses included validating parking, staying open later downtown while decreasing the number of bars . I I I I I I I I I I I I I I 55 ANALYSIS 50 DOWNTOWN IOWA CITY MARKET NICHE 400 350 300 OPINION RESEARCH 250 Number of Responses 200 50 00 50 o other Be Friendlier mprove Selection Expand Store Hours Lower Prices/Hove Soles Improve Public Safety Advertise and Promote Improve Customer Service mprove Appearance @fIIa,......ete.... APPROPRIATE NUMBER. THE N MAKING PURCHASES BY CHECKING INDICATE HOW IMPORTANT EACH OF THE FOLLOWING IS TO YOU (919 respondents) 18. purchasing in respondents mportant Very listed as were most frequently Customer Service (40.9%) and Convenience (38.6%) decisions . with 32.1 % of respondents purchasing decisions, respondents affecting mportant factor most third Variety appears to be the listing it as Very Important. . mportant Low Prices between Neutral and Very respondents ranked Speed of Delivery and Most . 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 5.0% 0.0% 5.0% 0.0% In - l: CI> "C l: o a. In CI> a=:: '0 - l: CI> U .... CI> D... Very mportont Neutro --- Not Very mportont -a- Low Price ~Customer Service _ Safety/Security ~ Variety ~Convenience - - Speed of Delivery 56 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... (922 respondents) WHAT IS THE BEST TIME FOR YOU TO SHOP DURING THE WEEK (MONDAY-FRIDAY)? 19. the best time to shop was after 5:00 p.m said 75.9%) The majority of respondents . fOllowed Sunday afternoon and Saturday morning respectively (918 respondents) The most popular weekend shopping time was Saturday afternoon (47.2%) and were picked as the best time to shop by 24.3% and 22.8% of respondents WEEKEND? 20. WHAT IS THE BEST TIME FOR YOU TO SHOP ON THE . (928 AVAILABLE? HIGH QUALITY NEW OR RENOVATED UNITS WERE F OWA CITY N DOWNTOWN LIVING CONSIDER WOULD YOU respondents) 21 (42.1 %) answered no and 41.5% answered Forty-two percent regarding living downtown lit sp evenly were almost Respondents yes. . they would consider living downtown 6.4%) were not sure of whether Sixteen . respondents) (420 NTERESTED IN RENTING OR OWNING? WOULD YOU BE F YOU CHECKED YES TO QUESTION 21, 22. house, while 35.2% would be interested in renting LIVED IN DOWNTOWN IOWA YOU F N LIVE LI KE TO their HOUSING WOULD YOU would be interested in owning OF WHAT TYPE 64.8%) of respondents 23. IF YOU CHECKED YES TO QUESTION 21, CITY? Sixty-five percent . Single familY detached home 8.6% other 7.7% A condominium or townhouse was the most popular type of downtown housing, picked by 27.6% of respondents. . nium or ownhou5e 27.6% hou5 Lof High rise apartment buildings (19.0%), single family detached homes (18.6%) and loft housing (16.5%) followed. . ory ding One TO TWO 5t apartment bui 0.7% 5e apar building 9.0% ri High 57 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... 24. IF YOU CHECKED YES TO QUESTION 21, WHAT SIZE HOUSING WOULD YOU LIKE TO LIVE IN? (423 respondents) . Two bedroom/2 bath units were the most popular, chosen by 32.4% of respondents. . Three bedroom/2 bath units and 2 bedroom/1 bath units followed and were picked by 29.3% and 19.2% of respondents, respectively. . studio/efficiency units, 3 bedroom/3 bath units and 4 bedroom units were the least popular, all selected by less than 5% of respondents. 40 60 80 00 20 40 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 58 20 o 4 bedroom or larger 3 bedroom/3 both 3 bedroom/2 both 2 bedroom/2 both 2 bedroom/l both 1 bedroom/l both studio/efficiency @ fIIa,.....ete... CONSIDERING YOU WERE F IMPORTANT TO YOU 25. IF YOU CHECKED YES TO QUESTION 21, WHAT FEATURES AND AMENITIES WOULD BE DOWNTOWN HOUSING? PLEASE CHECK THE TOP FIVE. (434 Respondents) affordability (67.3%) and windows/natura 69.8%), 79.7%), a washer and dryer were a parking garage The most popular amenities light (65.9%). . system security a space (48.2%) storage a allowed (51.2%), %), pets (34.8%). other popular choices Included: A patio/balcony (55. (47.5%), hardwood floors (39.2%) and architectural details . center (2.5%) and a playground (5.5%) ===:J I ===:J I I I 1 I I I I I 1 I :::::J I I I I nCluded an on-site business votes the least Views High ceilings Hardwood floors Arch Patio/balcony Live/work floorplan On-site business center On-site fitness center Pool & tennis Storage space Security system Parking garage Other Affordability Playground Be In a newly constructed building Be in a historic, renovated Yard/garden ndows/naturallight Fireplace Washer/Dryer ectural details Pets allowed received Amenities and features that W . 00 50 200 250 300 350 Num ber of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 59 50 o @fIIa,......ete.... YOUR THOUGHTS ABOUT DOWNTOWN IOWA CITY 26. ABOUT HOW OFTEN DO YOU COME TO DOWNTOWN IOWA CITY? (922 respondents) Never come Forty-nine percent (49.0%) of respondents downtown almost every day. . Less than once a month A quarter come downtown once a week and 12.0% come two to three times a month . Once a month Once a week every day times a month Almost to 3 2 come never respondents of One percent downtown. . 50 200 250 300 350 400 450 Number of Responses 00 50 o specifically (745 respondents) Many F YOU COME TO DOWNTOWN IOWA CITY REGULARLY, WHAT ATTRACTS YOU TO THE DOWNTOWN? Unique restaurants, shops and bars were some of the top downtown attractions listed by respondents mentioned Prairie Lights bookstore, the Java House, the New Pioneer Coop and the public library 27. . attractions were also popular special events Summer festivals, the Friday night concert series, the farmers market and other Children's activities were listed frequently, as was the University of Iowa . flavor offered the diverse loca that they enjoy the lively atmosphere of the pedmall and noted Numerous respondents mentioned by the walkable downtown . frequented downtown because drew many people, while others offices Personal services such as the post office and doctors they work or attend church services there . 60 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... THE DOWNTOWN? IMPROVED TO ATTRACT YOU TO IF YOU DON'T COME TO DOWNTOWN IOWA CITY REGULARLY, WHAT COULD BE (361 respondents) 28. Improving the selection of stores was one of the top improvements for downtown. Shoppers are looking for stores selling affordable apparel and home goods rather than expensive boutiques. A wider variety of restaurants was also a popular needed improvement. . and Parking was also a top improvement. Respondents frequently mentioned that parking tends to be expensive, inconvenient hard to find. Also, parking time limits are often too short to allow visitors to complete their shopping or appointments . facades, fixing building included Suggestions many respondents mproving downtown's physical appearance could attract providing additional park space and cleaning sidewalks. . that panhandlers often They also noted as deterrents to downtown visits rs led ba the numerous student-fi People frequently listed make them feel unsafe. . THE SAME WHAT WOULD IT YOU COULD KEEP ONE THING F REDEVELOP AND CHANGE, 29. AS DOWNTOWN IOWA CITY CONTINUES TO BE? (727 respondents) The public continues The pedestrian mall topped the list of responses regarding what to keep in downtown as redevelopment library, New Pioneer Coop and the wide variety of downtown restaurants were also popular responses . described while others thing to keep In downtown Many respondents picked the summer festivals and concert series as the one the area's charming atmosphere and old buildings . respondents was also mentioned by severa The eclectic variety of locally-owned businesses . (754 respondents) F YOU COULD CHANGE ONE THING ABOUT DOWNTOWN IOWA CITY WHAT WOULD IT BE? 30. offering moderately priced casua stores two changes listed most frequently nCluding chain stores, the ike additional clothing were rs would and fewer ba In terms of shopping, respondents attire, and longer business hours ncreased parking options . . led restaurants aimed rs and ba smoke-fi restaurants and stores drunk students increased fewer panhandlers, was frequently, as with Additional downtown housing and office space were mentioned at the adult population rather than students. desired a cleaner and safer downtown respondents Severa . . 61 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... 31. WHAT IDENTITY OR IMAGE WOULD YOU LIKE TO SEE DOWNTOWN IOWA CITY DEVELOP FOR ITSELF AS A UNIQUE SHOPPING/BUSINESS DISTRICT? (623 respondents) . Respondents described downtown as a unique area that is cultured and creative with locally-owned shops, restaurants and entertainment destinations. . Downtown's community-oriented, family-friendly atmosphere was highlighted, along with its fun, casual nature where there is "something for everyone." . Along with its atmosphere, respondents also noted downtown's usefulness. In the words of one person, Iowa City should be a "functional downtown," that is funky and "eclectic but affordable." . Overall, respondents felt that downtown should be seen as "alive and thriving." GENERAL INFORMATION 32. PLEASE CHECK YOUR AGE. (920 respondents) . Half of respondents were between the ages of 25 and 44 and 28.3% were between 45 and 64. Fifteen percent (14.9%) were 19 to 24 65 or Over 14-18 5.3% .1% 9-24 4.9% 50.5% 62 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... GENERAL COMMENTS Many long-time Iowa City residents expressed their love for the downtown, describing it as "the best downtown in Iowa and saying "I love Iowa City and hope it continues to take such pride in being a welcoming, fun, artistic community." They also commented on improvements that would enhance its current assets: "I love the unique locally-owned businesses and restaurants but I see no harm in offering some chain retailers." "Demark the downtown area with banners and flags, street markings and planters." "Let's have more alternatives to drinking... theaters, concert venues, comedy clubs, bowling alleys and miniature golf." "I want it all- lots of stuff at reasonable prices without driving miles to get it." Citizens had positive feedback and a genuine desire to contribute to the downtown: "This is a community with a heart, let's keep it that way, always. @fIIa,......ete.... OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 63 - en cu en c: o C. en cu ... 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V> >- --' <( z <( w :I: U Z l- e w :.::: a::: ~ <( 0 ~ +- >- C I- ~ U 0 <( -0 s: - 0 0 Q) z -0 s: '(1; 0 +- I- :J Z 0 s: -0 0 Q) C +- - 0 0 :I: ..Q u a::: ~ <( w 0 V> w '" a::: +- C Z Q) 0 -0 z C ii: 0 0 0.. '" ~ 0 ~ +- :c C 0 >. +- D 0 ~ ..Q N M ....... ('0. >- I- U <( ~ Q z ~ o I- Z ~ o c z C LLI ::( U o ..... C ~ o +- C ~ o -0 C -0 Q) +- o o ..Q ~ o ~ <X:! (") ~ en en LLI Z in ::::l ICICI CIl: ::::l o >- ~ '" Q) '" '" Q) C '(1; :J ..0 ::[ OJ u OJ ::[ l. fQ E $ +- '" o ~ M . N THE IOWA CITY AREA. (28 respondents) · Pedestrian ma · Visitor traffic WITH DOING BUSINESS . Libraries . Vibrant surroundings . Foot traffic . Liberal environment . Educated customers & employees NAME UP TO THREE ADVANTAGES OR STRENGTHS YOU ASSOCIATE . Stable economy . Central location . Community . University of Iowa . Restaurants and local businesses 4. 5. HOW MANY EMPLOYEES DOES YOUR BUSINESS HAVE INCLUDING YOURSELF? PLEASE SHARE THE NUMBER. (31 respondents) . Most businesses have between 0 and 5 full time (64.3%) and 0 and 5 part time employees 71.4%. . Between 10 and 50 employees is the next most popular category. Twenty-nine (28.6%) of businesses have between 10 and 50 fu time employees and 17.9% have between 10 and 50 part time employees 50+ 0-5 0.0% 0.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% o Full Time. Part Time Percent of Businesses 0-50 o 5- III CI> CI> >- ..2 c.. E LLI '0 Ci> ..c E ::;) z 65 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... respondents ) (31 WHAT ARE YOUR BUSINESS HOURS? 6. a week Friday and another 35.5% are open seven days through (35.5%) of businesses are open Monday Thirty-six percent . to 6:00 p.m. and 0:00 a.m from four to 5:00 p.m through Saturday from 8:00 a.m were open businesses (22.6%) are open Monday eight Business hours varied considerably half had other business hours Twenty-three percent . . respondents) (16 US YOUR BUSINESS OPERATION HOURS. F YOU ANSWERED OTHER ABOVE, PLEASE TELL 7. 2:00 a.m from mid-morning unti two are open :00 and from 8:00 unti two are open vary daily; hours that One business has . (31 respondents) DO YOU OWN OR LEASE YOUR SPACE? 8. AN D TH E space, while 32.3% own YOU ARE PAYING? PLEASE SHARE THE S/SQUARE FOOT OR SHARE YOUR MONTHLY RENT OF THE SPACE YOU RENT? (17 respondents) their IF YOU LEASE, WHAT IS THE RATE ESTIMATED SIZE (IN SQUARE FEET) 67.7%) lease businesses Most . 9. with an average of $19.50 per square foot and a median of Rental rates ranged from $10 per square foot to $75 per square foot, $14.80 per square foot . YOUR OF FOLLOWING ASPECTS WITH THE YOU SATISFIED ARE OWA CITY, HOW o. IF YOUR BUSINESS IS LOCATED IN DOWNTOWN SP ACE? (29 respondents) safety /protection fire service and electric of Respondents tended to be satisfied with their internet connectivity, stability Satisfaction rates were 65.5%, 78.4% and 75.9%, respectively, for these factors . were dissatisfied with parking Fifty-five (55.1 %) Business owners were frequently dissatisfied with parking availability and cost availability and 53.5% were dissatisfied with cost . 66 lightly ANALYSIS s or DOWNTOWN IOWA CITY MARKET NICHE were neutra (37.9%) third a while over OPINION RESEARCH of respondents, half Accessibility was considered satisfactory by about dissatisfied regarding this aspect of their space. @fIIa,......ete.... . (31 Business is moderately growing, ncreasing OPERATION)? OF MONTHS Business is rapidly expanding 9.7% 12 LAST (I.E. Declining business activity (fewer clients, fewer sales, less ncome), 22.6% LEVEL ACTIVITY BUSINESS grow CURRENT seen business YOUR have CHARACTERIZE Over a third (38.7%) of businesses moderately over the past year. YOU HOW WOULD respondents) 11 . n Is leve Twenty-nine percent (29.0%) have had stable business the past twelve months and 22.6% have seen declines . Holding our own (same level of business, fairly steady) , 29.0% ONE TO TWO NEXT THE N OPERATIONIS EXPAND OR REDUCE YOUR DESCRIBES YOUR PLANS TO BEST 2. WHAT DESCRIPTION BELOW YEARS? (31 respondents) . Half of businesses (54.8%) have no plans to change within the next two years. . Slightly less than a third (29.0%) plan to expand operations. . Seven percent (6.5%) plan to relocate and another 6.5% are uncertain of their plans. OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 67 Plan to expand operations, 29.0% Plan to reduce operations, 3.2% Plan 10 relocate, 6.5% @fIIa,......ete.... No plans 10 change, 54.8% (31 LAST TWO YEARS. THE N N YOUR BUSINESS MADE IMPROVEMENT YOU HAVE OR NVESTMENT OF 3. PLEASE CHECK ANY TYPE respondents) the past two years marketing and promotiona nesses have expanded or added new products, services or Inventory In their (51.6%) have expanded and half (58.1 %) have made physical improvements 64.5%) of busi Sixty-five percent percent Fifty-eight activities. . made m provements/in vestmen ts were other popula systems Improvements Adding new or additional employees and making by Iowa City businesses in the last two years . . None Systems improvements New/additional employees New/expanded marketing/promotional activities New/expanded products, services, inventory Physical improvements (store design/layout, nterior/exterior remodeling) 0 3 6 9 12 15 18 21 (19 11 CHECKED IN QUESTION Number of Responses NVESTM ENTS/IM PROVEME NTS FOR THE VALUE ESTIMATED DOLLAR 4. PLEASE PROVIDE THE TOTAL respondents) to the $10,000 in (42.1 %) were below Most to $30 million The value of recent investments/improvements ranged from $2,000 $49,999 range, although 21.0% were between $200,000 and $599,999. . 68 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH the median was $30,000 68 million and The average value was $ @ fIIa,.....ete... . (30 TWO YEARS. ONE TO NEXT THE N YOU PLAN ON MAKING IMPROVEMENT OR NVESTMENT OF TYPE 5. PLEASE CHECK ANY respondents) nventory and adding new or services adding products are planning on expanding or Forty percent (40.0%) of businesses employees within the next two years . store to ncluding changes (30.0%), mprovements make physica Thirty percent are planning to expand marketing (33.3%) or layout or interior or exterior remodeling, in the next two years None Systems improvements New /additional employees New /expanded marketing/promotional activ ities serv ices, invenTory Physical improvements (store design/layout interior/exterior remodeling) New/expanded products . 0 2 4 6 8 0 2 4 Number of Responses THE MAJORITY OF YOUR SALES ARE DERIVED? PLEASE CHOOSE JUST ONE. (31 FROM WHICH AREA WHAT IS THE PRIMARY MARKET respondents) 6. University- business is their primary market area of said most market area and 6.5% list Johnson County as their primary their question selected Iowa City as this (51.6%) of businesses responding to (29.0%) Twenty-nine percent related. Half . . · No business owner selected travelers/tourists as a primary market. 7. IF YOU CHECKED TRAVELERS/TOURISTS, PLEASE PROVIDE MORE DETAIL ON THIS MARKET. (0 respondents) 69 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH @fIIa,......ete.... YOUR BUSINESS? IN ADDITION TO A STRONG ECONOMY, WHAT ARE THE CRITICAL FACTORS FOR THE SUCCESS AND EXPANSION OF CHECK ALL THAT APPLY. (30 respondents) 8. success critica (53.3%) as Labor (53.3%) and Qualified Public Access Traffic (56.7%), Foot identified Over half of respondents factors for their businesses . top choices nClude Marketing and Reputation nventory were other Up-to-date Equipment/Technology and Current Other factors listed by respondents . other Foot Traffic Public Access Financing Up-to-Date Equipment /T echnology Current Inventory Tourism Qualified Lobar . 0 2 4 6 8 10 2 4 6 8 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 70 @fIIa,......ete.... FIVE PRIORITY CHECK THE TOP PLEASE FACING YOUR BUSINESS TODAY? MAJOR ISSUES OR OBSTACLES WHAT ARE SOME OF THE ISSUES. (31 respondents) 9. respectively) General Operating Costs 71.0% and 64.5% Competition (38.7%), respondents Traffic (45.2%), the most dentified by More than a third of business owners selected Insufficient Customer (35.5%) and City/County/state Codes (35.5%) as obstacles two issues the of Rent/Property were Parking and Cost . . skilled finding few identified problems and issues to be Computer/Technology problems found Telecom or owner No business employees . I I I I mix the downtown reta attitudes toward downtown and Other Outdated Machinery A vailability of Employees Insurance Costs Competition Payroll Costs Parking Public Safety/Crime Current Economic Conditions taxes Other responses included property . Cost of Rent /Prope ProperTy Improvements (fa<;:ade, et Customer Traffic (not enough/shrinkin @fIIa,......ete.... Employees Regulations ng Cos Cosh Flow/Working Capito General Ope rot Skill Level/Preparation of City/County/State Codes or 5 20 5 o 5 o 71 DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS Number of Respondents OPINION RESEARCH OR CODES CITY/COUNTY/STATE IF YOU CHECKED (16 respondents) 20. PLEASE EXPAND ON ANY OF YOUR ANSWERS TO THE QUESTION ABOVE. REGULATIONS," PLEASE EXPLAIN WHAT CODE(S) ARE AN ISSUE OR OBSTACLE. time when customers a 5 p.m at Several respondents noted that parking spaces in front of their businesses become taxi stands are still looking for parking spaces and people are unlikely to be using cabs. . the day and an taxes as a difficulty a lack of police presence at the pedmall dUring the downtown Two respondents listed high downtown property in rs other concerns included too many ba overly large city administration . . mpede can of building and zoning codes In terms of local codes, one respondent explained that the varying interpretations business and another said that sign design restrictions are too stringent . ARE ASSISTANCE NFORMATION OR TO KEEP YOUR BUSINESS HEALTHY AND COMPETITIVE, WHICH OF THE FOLLOWING TYPES OF IMPORTANT TO YOUR COMPANY'S GROWTH? PLEASE CHECK ALL THAT APPLY. (29 respondents) 21 I I =:J :J I I I othe ance echnologyassis Computer/ Marketing and advertising programs were the number one type of assistance selected by business owners (picked by 69.0% of respondents) as crucial to keeping their businesses healthy and competitive . Property and fa9ade Improvements raining E-commerce ance with loan preparation Using the management nternet fo Business Assis A third of respondents (34.5%) identified property and fa<;ade improvements and a quarter (24.1 %) said that information/assistance regarding using the internet for e-commerce is important. . ow fl planning and cash Business Marketing/Advertising programs raining Market identification Is Employee hiring/ski other popular responses included expansion/relocation information, employee hiring/skills training and business planning and cash flow assistance . expansion/relocation Information Business 0 5 0 5 20 25 Number of Responses OPINION RESEARCH I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 72 @fIIa,......ete.... EFFORT TO ATTRACT CUSTOMERS TO DOWNTOWN ARE YOU INTERESTED IN PARTICIPATING IN A COOPERATIVE BUSINESS MARKETING IOWA CITY OR TO ENCOURAGE RESIDENTS TO SHOP LOCALLY? (26 respondents) 22. BE SEPARATE while 34.6% were not LL AND NUMBERS PROVIDED W rking approach NAME ALL n a cooperative ma AND PHONE NUMBER. were Interested US YOUR NAME 65.4%) of respondents IF YOU ANSWERED YES, PLEASE TELL FROM OTHER SURVEY RESPONSES Sixty-five percent . 23. marketing effort n response to participating In a cooperative business Sixteen survey participants provided names and numbers . ABOUT THE SAME THE ONE THING COULD KEEP YOU F IOWA CITY AS DOWNTOWN IOWA CITY CONTINUES TO GROW AND CHANGE SHOPPING/BUSINESS DISTRICT WHAT WOULD IT BE? (24 respondents) DOWNTOWN OF FUTURE THE 24. Out -of-town visitors/traffic concert . Pedestrian ma . . series General ambiance of downtown Friday night . . & entertainment Physical appearance & historic buildings Friendly, fami Mix of unique shops, restaurants . . Iy atmosphere respondents ) F YOU COULD CHANGE ONE THING ABOUT DOWNTOWN IOWA CITY, WHAT WOULD IT BE? (26 25. of needs to responsiveness mprove city government's . & employees for & convenience mprove parking cost . downtown businesses shoppers Limit the number of ba Develop additional downtown hotels . retail mix & improve downtown restaurants rs . . 73 ANALYSIS the pedma DOWNTOWN IOWA CITY MARKET NICHE n mprove plantings OPINION RESEARCH . n downtown the pedma stop panhandling In Ban smoking @fIIa,......ete.... . AS A UNIQUE SHOPPING DISTRICT IOWA CITY DEVELOP FOR ITSELF WHAT IDENTITY OR IMAGE WOULD YOU LIKE TO SEE DOWNTOWN ATTRACTIVE TO RESIDENTS AND VISITORS ALIKE? (22 respondents) 26. district & entertainment Arts . shops, small cafes, fine dining, antiques Ity specia Variety - & coffeehouses . Unique and upscale Desti . nation culinary district residents . Clean & charming Exciting place to visit, . (27 alike OWA CITY AS A WHOLE? students OR VITALITY OF & A place for FUTURE N THE ECONOMIC . DENCE CONF shop and live OVERALL . 27. HOW WOULD YOU RATE YOUR respondents) economic s future of Iowa City 4.8% had a low level of confidence regarding Iowa City the economic in and (51.9%) were moderately confident (33.3%) were highly confident A third of respondents outlook. of respondents Half . . N WOULD PURCHASE OF TOWN THAT YOU 28. ARE THERE PRODUCTS OR SERVICES THAT YOUR BUSINESS CURRENTLY PURCHASES OUT TOWN IF THEY WERE AVAILABLE? (26 respondents) town of they are currently purchasing out that do not have products or services Seventy-three percent (73.1 %) of respondents that could be purchased in town if available. . available if town would be Interested in purchasing products or services in (26.9% of respondents) Seven businesses . (5 respondents) Groceries F YOU ANSWERED YES, PLEASE NAME THEM AND EXPLAIN YOUR RESPONSE. . products green En viron menta Ily-frien d Iy Local commercialliabi 29. . . 74 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE Sporting goods OPINION RESEARCH . Iity Insurance agent supplies @fIIa,......ete.... Medica . CURRENTLY SHOPPING IN RESIDENTS WHO ARE LOCAL BUSINESSES DO TO ATTRACT MORE LOCAL IN YOUR OPINION, WHAT COULD OTHER AREAS? (19 respondents) 30. and uniform for high quality goods and persona retail mix while throughout the downtown store hours that are longer, rketing - promote downtown as a destination more convenient service ma Joint miting bars stores and improve overa Offer 2 or 3 large, destination . . . . want from downtown Better determine what consumers and combat the Image of difficulty parking downtown mprove parking options with . products green passes mprove selection of environmentally-friendly Partner free bus Reward customers . . (16 AREA? THE OF OUT LIVE WHO to Improve downtown AND OTHER SHOPPERS VISITORS owa and other organizations MORE BUSINESSES DO TO ATTRACT the University of LOCAL WHAT COULD respondents) with . 31 the unique offerings of downtown ng and television promoti n newspapers Continue and enhance artistic and cu rketing - ads ma Joint . Itural events . Promote new and existing cUlinary choices mprove prices and variety Focus on visitors to the University and convention-goers . . . 75 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH support from city government @ fIIa,.....ete... mprove . 32. PLEASE PROVIDE US WITH THE FOLLOWING INFORMATION. NAMES, NUMBERS AND EMAIL ADDRESSES WILL BE SEPARATE FROM OTHER SURVEY RESPONSES, WHICH WILL BE USED ONLY IN THE AGGREGATE. (19 respondents) Businesses participating in the survey who shared their identity with us included: . DOMBY . Fired Up Iowa City Inc. . Plaza Centre One . Moengroup . Sondra B. Kaska Law Office . Turning Point Counseling and Psychotherapy . US Bank . Eastwind Healing Center . Roominations . Joe's Place, Donnelly's Pub and BlackStone Bar & Grill . Iowa Book LLC . Discerning Eye . Velvet Coat . Herteen and Stocker Jewelers . Northwestern Mutual Financial Network . X-Wires Communications . Technigraphics GENERAL COMMENTS Businesses in Iowa City represent a variety of interests and opinions; they have a vested interest in their community and a desire to see improvements succeed. "Visitors from large cities and from around the world immediately recognize downtown Iowa City as a unique and wonderful place. Those of us who live here need to recognize this and promote it." While business owners expressed a desire to improve the downtown retail mix in order to take the focus off the high number of bars, they also embraced the student population. "Encourage student involvement, opinions and development. The city should partner with the University to encourage use of local businesses." Finally, business owners recognized the need to reconnect many residents to downtown Iowa City by "encouraging a clean atmosphere downtown," and creating "special offers to targeted audiences to entice them to try downtown again" to see that it is 76 ANALYSIS DOWNTOWN IOWA CITY MARKET NICHE OPINION RESEARCH and services vital with lots of diverse products @fIIa,......ete.... CHAPTER 3 RETAIL MARKET ANAL YSIS RETAIL SUPPLY The retail supply section examines the type and characteristics of the existing retail base in the Iowa City market area and evaluates downtown Iowa City as a retail shopping district. A. Existing Retail Development In the Iowa City and Coralville area, Highways 1 and 6 are home to the majority of retail centers other than the shops and restaurants of downtown Iowa City. Exhibit R-1 on the following pages catalogs major shopping centers in the Iowa City/Coralville area. Together they provide 2.6 million square feet of retail, restaurant and service space. The Coral Ridge Mall at the intersection of 1-80 and Coral Ridge Avenue (just off Hwy 6) is the largest center in the area, providing about 1,200,000 square feet of retail space and spurring the growth of additional surrounding retail and restaurant space. Since the mall's opening in 1998, several "big box" retailers including Wal-Mart and Lowe's opened at the 1-80/Coral Ridge Ave intersection and additional retail development is underway on the intersection's northeast corner. Emanating from the Coral Ridge area, retail growth continues north on Hwy 965 to North Liberty with the development of several shopping plazas including Grand Rail, Oakdale Plaza and Jordan Village. While these tend to be smaller commercial strips with predominately convenience-oriented retail and service rather than destination centers, they evidence the push northward toward North Liberty from 1-80. Small shopping plazas and free-standing retail stores and restaurants extend southeast from the Coral Ridge Mall area along Hwy 6 to Hwy 1. Typical offerings include full- service and fast food restaurants, gift shops, hair/nail salons and cellular phone providers, along with neighborhood-serving office space including insurance, banking and realty services. In Coralville's recently developed City Center, civic spaces are combined with office space and specialty retail, including the New Pioneer Co-op grocery, women's and children's apparel, a pet boutique and bead and yarn shops. Centers along the Hwy 6 to Hwy 1 corridor tend to be fully occupied with only a few vacancies overall, as noted during Marketek's May 2007 field survey. Moving east along Hwy 6 from its intersection with Hwy 1, the pattern of strip centers and free-standing retail continues. While many centers near the Coral Ridge Mall were developed within the last ten years, this stretch of Hwy 6 features older plazas, most built in the 1970s and 1980s. Eastdale Plaza, Pepperwood Place and the redeveloped Sycamore Mall provide a combined 375,138 square feet of retail space with minimal vacancies. Sycamore Mall features 33 stores including a Talbots and a 12 screen cinema. Pepperwood Place is home to a variety of discount retailers and second hand shops, but will have a large vacancy when Hancock Fabrics closes. Lease rates for most centers in this area are in the $6 - $12 NNN per square foot range. Along Hwy 1 between Hwy 218 and Hwy 6, the largest retail center is the Wal-Mart located by the Iowa City municipal airport. Adjacent to Wal-Mart is a Staples, a vacant restaurant space and a vacant former Cub Foods. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 78 Center Distance from Downtown* GLA (sq ft) Boyrum's Plaza 1720 Waterfront Drive Iowa City 1.5 miles 130,336 Clear Creek Plaza 208 1 st Avenue Coralville 2.5 miles 8,176 Clock Tower Plaza 1800 Fifth street Coralville 4.1 miles 30,000 Coral Ridge Mall 1451 Coral Ridge Avenue Coralville 5.2 miles 1,065,513 Coralville City Center 2nd street & 12th Avenue Coralville 3.2 miles 44,408 Eastdale Plaza Muscatine & 1st Avenue Iowa City 1.9 miles 57,450 Gateway One Center 1101 Riverside Drive Iowa City 1 .7 miles 119,336 Heartland Plaza 1-80 and Hwy 965 Coralville 6.0 miles 292,591 Lantern Park Plaza 2024 8th street Coralville 4.3 miles 101,202 Liberty Square 119 2nd Street Coralville 2.5 miles 19,925 Menards 1375 Hwy 1 Iowa City 3.0 miles 141,900 Description/Stores Older retail center that includes Hy-Vee, Office Depot, Advance Auto Parts, Blockbuster and H&R Block. Small neighborhood commercial strip with tenants including two salons/barbershops, two restaurants and an H&R Block office. No vacancy. Opened in 1998. Tenants include apparel and shoe stores, gift shops, a salon and a dance academy. Regional mall opened in 1998. Anchors include Dillards, Sears, JCPenney, Scheels, Target, BestBuy and Younkers. Recently developed "downtown." Tenants include New Pioneer Co-op, gift shops, a salon and small office spaces. Tenants include a workforce center, a jeweler, a dentist and a hair salon. No vacancy. Formerly Wardway Plaza. Tenants include Fin & Feather outdoor store, Dollar General, Auto Zone and two restaurants/bars. No vacancy. Regional center with Wal Mart, Kohl's, Dress Barn and Famous Footwear. Opened in 1969. Anchors include Hobby Lobby and Hy-Vee Grocery. Small commercial strip. Tenants include Tan World, Core Fitness, House of Aromas, a computer shop and two banks. No vacancy. Home improvement store. Planning to relocate. University of Iowa may take over space. *Road miles from the intersection of Washington and Dubuque Streets. Source: ESRI BIS; Shopping Center Directory; City of Iowa City & Johnson County Tax Assessor; Marketek, Inc. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 79 Center Distance from Downtown* GLA (sq ft) Pepperwood Place 1971 Broadway street Iowa City 2.0 miles 100,000 Sycamore Moll 1622-1660 Sycamore Street Iowa City 2.4 miles 232,686 Wal-Mart Center 1001 Hwy 1 Iowa City 2.4 miles 206,107 2nd Street & 25th Avenue Coralville 4.7 miles 25,000 89 2nd Street Coralville 2.4 miles 30,000 1025-909 S Riverside Drive Iowa City 1 .4 miles 36,608 ITotal Square Footage in Retail Centers ITotal Downtown Retail Square Footage 2,641 ,238 435,490 ITotal Retail Square Footage 3,076.728 *Road miles from the intersection of Washington and Dubuque Streets. Description/Stores Well-kept, older center with second-hand and discount stores including Goodwill, Slumberland Furniture and Tuesday Morning. Hancock Fabrics going out of business. Moll built in 1969 recently redeveloped using TIF funds. Anchors include Von Maur, Talbots, Fashion Bug, Sycamore 12 Theaters and several restaurants. Wal-Mart and Staples. Vacant former restaurant and Cub Foods total 67.735 square feet of vacant space (32.9%). Potential Wal-Mart relocation would increase vacancy. Commercial strip near Coral Ridge Moll. Tenants include Outback Steakhouse, UPS Store, Cold Stone Creamery, US Cellular and 0 solon. No vacancy. Small strip center with tenants including Subway, Papa Johns, nail solon, portrait studio, gourmet coke shop and futon store. No vacancy. Small strip center/freestanding retailers. Tenants include JoAnn Fabrics, two restaurants, auto supplies and tobacco store. No vacancy. Source: ESRI BIS; Shopping Center Directory; City of Iowa City & Johnson County Tax Assessor; Marketek, Inc. B. Downtown Business Mix Exhibit R-2 classifies ground floor land uses in downtown Iowa City by business type and retail category as of September 2007. Including retail space at Old Capitol Town Center, downtown space totals 609,502 square feet. Retail/restaurants make up the majority of this space (435,490 square feet), with the remaining 174,012 square feet composed of office space, municipal, civic or religious uses or vacant space. The vacancy rate in downtown is low at 3.8%. Among retail and restaurant space, restaurants and bars/nightlife make up the largest percentage of businesses (45.0%), followed by shoppers goods (28.1 %). Within the e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 80 shoppers goods category, the most frequent stores are those selling miscellaneous specialty items (17.5%), followed by apparel (7.2%). Personal services account for 17.0% of ground floor businesses in downtown. EXHIBIT R-2 SUMMARY OF GROUND FLOOR BUSINESSES Downtown Iowa City 2007 Business Type/ Number of Square Percent of Retail Category Businesses Footage Total Space Apparel 14 31,342 5.1% Home Goods 4 14,588 2.4% Miscellaneous Specialty Retail 35 76,344 12.5% Shoppers Goods 53 122,274 20.1% Grocery 2 8,765 1.4% Health & Personal Care 4 17,320 2.8% Convenience Goods 6 26,085 4.3% Restaurants 55 150,156 24.6% Bars/Nightlife 13 45,826 7.5% Entertainment 3 17,001 2.8% Personal Services 28 74,148 12.2% Office/Bank 14 92,330 15.1% Municipal 2 40,483 6.6% Civic/Church 2 17,734 2.9% Other 18 150,547 24.7% Vacant 7 23,465 3.8% ITotal Retail/Restaurant Space ITotal Downtown Ground Floor Space 158 183 435,490 609,502 71.5% 100.0% Note: Includes downtown ground floor space, retail space at Old Capitol Town Center and New Pioneer Co-op. Vacant space at Old Capitol Town Center not included. Residential space not included. Sources: City of Iowa City Tax Assessor; Marketek, Inc. COMPETITIVE COMMERCIAL ASSESSMENT: DOWNTOWN IOWA CITY'S COMPETITIVE POSITION Successful downtown districts of any size have a healthy business climate and a proactive marketing program. Key competitive amenities and characteristics from an attractive built environment to extensive marketing are critical to draw customers and business prospects to a neighborhood or community shopping center. These are particularly critical for older commercial districts seeking to (or having to) compete with new shopping malls, lifestyle centers and big box retailers. An overview of downtown Iowa City's competitive posture is presented in the table below. The assets, challenges and opportunities begin to address two important perspectives: ell'lar...ete.... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 81 1. What customers want from a shopping experience; and 2. Business climate and marketing factors that affect business decision-makers seeking a profitable location. EXHIBIT R-3 DOWNTOWN IOWA CITY'S COMPETITIVE POSITION Assets Iowa City offers a downtown that is active virtually 24 hours a day. Target markets are all growing-local population, visitor, employment and student. Johnson County one of 5 out of 99 Iowa counties w/ growth. strong, diverse and growing visitor market. Several regional draws exist in central Iowa City including attractions such as the Old Capitol, Kinnick Stadium (70,585 capacity) and nationally- recognized hospitals and clinics. Arts and cultural venues are significant, such as the Iowa City Jazz Festival (25,000 people) and the Summer of the Arts Festivals (30,000 people) and event centers like Hancher Auditorium, Englert Civic Theater. Two downtown hotels, the Sheraton and Hotel Vetro provide a base for overnight visitors. Strong local organizations to help with downtown promotions: Iowa City Area Chamber, Summer of the Arts, Downtown Association of Iowa City. The adjacent location of the University of Iowa and very close proximity of Mercy Hospital are significant regional employment traffic generators for downtown. Iowa City promotes itself as Health Center USA. Coupled with the constant flow of students, clients and families the potential economic impact is sizable. Downtown Iowa City's physical layout and historic character are a plus for creating a friendly, walkable, pedestrian-oriented business district: active pedestrian mall; relatively compact 9-block core district; short, level blocks; tree-lined streets; close to, but away from busy arterial roads. Being surrounded by quality, historic residential neighborhoods (Longfellow, Melrose, Northside) adds to downtown's character and market potential. An established urban renewal agency actively spearheading and stimulating downtown improvements. City initiatives and investments downtown have totaled $40 million since 1997. Downtown is already established as the local arts and entertainment district with a critical mass of restaurants/bars, several galleries/jewelers, theaters and a calendar of events that draws from beyond the Cedar Rapids-Iowa City corridor. Iowa City music scene is extensive. The Iowa River Cultural District and Old Capitol Cultural District are actively promoted. Numerous unique downtown businesses, boutiques and restaurants are regional draws, including Prairie Lights Bookstore, AKAR, Domby and Iowa Artisans Gallery, to name just a few. Downtown Iowa City's anchors include multiple civic uses (city hall, library, post office), which all generate regular foot traffic and signal the importance of downtown to the community. Iowa City was ranked #5 in the nation as one of the Best Small Places for Small Business and Careers by Forbes Magazine, 2006. Several business clusters exist downtown but could be more highly promoted: 5+ jewelers in Washington Street area, several boutiques, over a dozen arts and gallery businesses. Downtown has a quality Farmer's Market; however, it is out of the core area and does not encourage cross-shopping with downtown merchants. ell'lar...ete.... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 82 EXHIBIT R-3 (continued) Challenges Entrances to downtown not well marked for visitors; no gateways, or landmarks to indicate when you have 'arrived' in downtown Iowa City. Significant new retail development in Coralville has impacted the downtown mix and drained some retail sales. Coral Ridge Mall alone is 1 million sq. ft. Coralville's aggressive growth continues with Iowa River Landing Project, a 1 DO-acre mixed-used project adjacent to the Marriott Hotel and convention center. A critical mass of clustered retail and boutique businesses are needed to sustain foot traffic. Old Capital Mall is 62% university-owned; a hybrid office-retail center; no longer functions as prime retail center. However, the offices there employ 700 and generate positive foot traffic downtown. Up-to-date inventory of available commercial building/sites for sale/lease is needed. Existing retail spaces are quite small; their size may be a challenge for some types of retail. Downtown's markets are highly diverse from employees and families by day to students by niaht-makina it hard to meet the needs of all. Retail rents downtown are relatively high as reported by business owners: $20-$25/SF N N N. New retailers coming in go to the very edge of downtown for affordability. The heart of the shopping district (College and Dubuque Streets) lacks auto visibility, forcing customers to get out of their cars and trust they will be interested. Oversaturated supply of bars; reportedly, 50 liquor licenses are held within a mile radius from the heart of downtown. Much less retail downtown today than 10-15 years ago. Limited commercial land available in the downtown core is pushing the boundaries of the core north to Market Street and south to Burlington Street and beyond. Available retail space in the core is quite limited making it tough to attract retailers. Growth of middle market chain restaurants in Coralville reportedly has drained and shifted downtown's resta ura nt traffic. Local residents are more likely to eat at middle market chains/restaura nts. Local/downtown leadership may be contributing to the concerns expressed about bars, parking, etc. by dwelling on these too much. Downtown lacks a strong management team/organization; no gameplan in place to address business/economic development issues; no 'coherent, collateral package' exists. Vote to establish a SMID failed twice and will need a new marketing campaign/makeover before the concept is reintroduced. A 'unified' voice is needed, including the City's. According to some the City is noted as risk-averse. Relations between downtown business community and city government appear to be strained over issues such as snow removal, street/sidewalk clean-up, new ordinance making loading zones taxi stands after 5 PM. Several local investors noted the 'rigidity' of the City regarding development projects/standards Downtown positioning, marketing and branding are needed to overcome negative comments, attitudes. City web site is functional but not enticing or necessarily speedy and easy to navigate for business prospects. The economic development page is uninviting and community resource information is in a file that downloads slowly. The web site overall does not reflect the Iowa City 'experience' and is in need of revamping. Several prime Downtown storefronts would benefit from cleaning-up, image enhancement, merchandising assistance. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 83 EXHIBIT R-3 (continued) Challenges (continued) Downtown business hours were cited as a concern by many. Most businesses are closed by 5 or 6 at the latest. Many perceive downtown parking as an issue. A definite concern exists about students taking customer parking spaces. Opportunities (selected) Physical Improvements University is working on wayfinding program that the City will dovetail with in adding directional signage. City is implementing streetscape project on Burlington (2009 completion). University's Riverfront Master Plan will also contribute significantly to downtown area activity with intensive riverfront programming and events. Development/Redevelopment University owns the upper stories of the 8-story Jefferson Big. Potential redevelopment opportunities have been considered from upscale housing to upscale inn. Northside Marketplace neighborhood just north of downtown offers an eclectic neighborhood district with key restaurant anchors. Hieronymus Square, a 13 story, mixed use development project breaks ground in fall 2007, one of several development projects planned for the Burlington Street corridor. Other catalytic projects on Burlington Street including university recreation and wellness center (216,000 sq ft) at corner of Burlington and Madison; become a regional draw w/ 1,000 permanent seats and ability to host national events. Corner of Linn & Court Streets (NW Corner) just purchased by out-of-state developer for $1.6 mil for a 21,000 SF mixed-used project. Business Development/Mix of Uses Entertainment: Movie theater is a top need in the downtown. Large concert/performance venue needed. Numerous niches to be filled: home furnishings/accessories, audio/electronics, specialty clothing. Increased emphasis on locally-owned and grown businesses as part of downtown's unique small town appeal. "Mainstream market" not well covered. Upper end and student markets are well covered. Timing is good for downtown to explore one or more anchor chain stores, with high density, upper market housing and commercial space on the rise. More retail variety, especially convenience, is needed-examples frequently noted were: grocery store, small department store, hardware store. Marketing and Outreach More cross-marketing with events is needed. Many business owners note that events are key to their success. Isolated instances of joint restaurants and performance marketing. Focus groups noted that aggressive marketing is needed. Downtown is 'underpromoted.' Downtown is MORE THAN a place for college kids. Mature market is untapped as is young professionals. Target 25-34 year olds. Downtown Iowa City needs a master event calendar. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 84 EXHIBIT R-3 (continued) Opportunities (selected) (continued) Capitalize on Iowa City target markets such as seniors, students and the daytime marketplace (2500+ employees) with special discount or other campaigns to attract more shoppers. Downtown needs a parking map. Downtown can work to overcome the parking concerns by promoting FREE parking during key events like the Jazz Festival. Cluster marketing needed: ex, a map of boutiques. Lucky Magazine (8/07) features 9 downtown Iowa City businesses and includes such a map. Need a map of specialty businessees-apparel, gift and others. Downtown Iowa City needs branding and promotion campaign emphasizing its identity as the eclectic and vibrant center of activity for the region. RETAIL DEMAND This section provides estimates of existing retail leakage and potential future market demand for retail uses in the Iowa City market area. Retail demand generated by local and greater market area residents, visitors and students is considered here. A. Existing Retail Balance Retail MarketPlace data prepared by ESRI Business Information Solutions weighs estimated retail sales against estimated demand to help gauge how well a defined market area is currently meeting its retail potential. Retail 'supply' is based on estimates of actual retail sales using the Census of Retail Trade and a variety of other business and government databases. Retail 'demand' represents the expected amount spent by market area residents for various retail goods and services, based upon consumer expenditure patterns derived from the U.S. Consumer Expenditure Survey. When estimated retail demand exceeds supply, a leakage presumably occurs, causing consumers to look outside of the market area for retail goods and services. A surplus, conversely, suggests that supply exceeds demand and that certain business categories are importing sales from shoppers who live outside the market area. It is important to note that the data only reflects potential spending from resident shoppers and does not include spending from visitors and employees working but not living in the market area. In reality, the consumer marketplace is quite fluid. Even if goods are locally available, priced appropriately and of good quality, local shoppers will always do a certain amount of shopping away from home, including catalogue and Internet purchases. However, the leakage/surplus factor provides a reasonable indication of the availability of goods in the local market. Exhibit R-4 shows a leakage of sales in one business category in the local retail market area and four business categories in the greater retail market area. In the local retail market area, there is a leakage of $3,418,142 in general merchandise stores, which translates into 15,825 square feet of retail space, assuming average sales of $216 per square foot, the standard provided by the Urban Land Institute. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 85 Apparent surpluses in the other retail categories at the local level are likely due to the numerous retail offerings of downtown Iowa City and Coralville in comparison to the surrounding areas. Residents of Johnson County living outside the local retail market area may travel there to shop and dine, leading to the large surpluses in Food Service & Drinking Places (-$56.0 million), Clothing & Accessories (-$49.5 million) and Sporting Goods, Hobby, Book & Music Store (-$46 million) business categories. The gap between estimated sales and demand is more pronounced in the greater retail market area. Exhibit R-4 shows that as much as $81.0 million in potential sales is leaking outside of the greater retail market area. The largest leakages occur in the Food & Beverage Store ($65.7 million) and Furniture & Home Furnishings Stores ($10.1 million) business categories. This level of sales leakage would potentially support an estimated 243,822 square foot of retail space. In terms of businesses that are well supplied in the greater retail market area, Sporting Goods, Hobby, Book & Music Stores and Health & Personal Care Stores lead with an estimated $79.4 million combined surplus. Note, however, that these figures only reflect the difference in actual and potential sales generated by residents of the Iowa City market areas. Because of the heavy influence of visitors to the Iowa City area, it is possible that additional retail sales may be supported in selected segments of these retail categories. Marketek estimates that downtown Iowa City could capture as much as 30% of sales leakage occurring in the local retail market area and 20% occurring in the greater retail market area. These captures result in an immediate potential demand of 19,807 square feet of supportable retail space downtown. Note that sales leakage from Food & Beverages Stores in the greater retail market area is not included in this immediate potential demand figure as demand for these goods is derived primarily from nearby residents (Le., residents of the Local Retail Market Area only). e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 86 Supply Demand Difference NAICS [Retail Sales) [Potential) [Leakage/Surplus) Local Retail Market Area 442: Furniture & Home Furnishings Stores $23,235,842 $22,088,999 -$1,146,843 443: Electronics & Appliance Stores $28,393,282 $21,732,171 -$6,661,111 444: Building Materials, Garden Equip. & Supply Stores $46,900,488 $24,362,575 -$22,537,913 445: Food & Beverage Stores $154,673,556 $136,146,614 -$18,526,942 446: Health & Personal Care Stores $63,963,199 $22,136,743 -$41,826,456 448: Clothing & Clothing Accessories Stores $93,643,623 $44,092,039 -$49,55 1 ,584 451: Sporting Goods, Hobby, Book & Music Stores $61,107,352 $15,090,073 -$46,017,279 452: General Merchandise Stores $141,552,731 $144,970,873 $3,418,142 453: Miscellaneous Store Retailers [florist, office supplies, gift stores, etc.) $28,945,922 $9,964,222 -$18,98l,700 722: Food Services & Drinking Places $182,265,280 $126,213,114 -$56,052,166 Total Leakage $3,418,142 Estimated Supportable Square Footage 15,825 Greater Retail Market Area 442: Furniture & Home Furnishings Stores $32,243,071 $42,319,088 $10,076,017 443: Electronics & Appliance Stores $35,790,754 $39,928,644 $4,137,890 444: Building Materials, Garden Equip. & Supply Stores $66,706,041 $50,757,461 -$15,948,580 445: Food & Beverage Stores $186,089,976 $251,815,151 $65,725,175 446: Health & Personal Care Stores $81,168,234 $42,241,498 -$38,926,736 448: Clothing & Clothing Accessories Stores $102,246,012 $78,351,092 -$23,894,920 451: Sporting Goods, Hobby, Book & Music Stores $66,069,758 $25,608,670 -$40,461,088 452: General Merchandise Stores $274,693,139 $267,045,818 -$7,647,321 453: Miscellaneous Store Retailers [florist, office supplies, gift stores, etc.) $38,844,584 $19,131,959 -$19,712,625 722: Food Services & Drinking Places $226,984,721 $228,002,557 $1,017,836 Total Leakage $80,956,918 Estimated Supportable Square Footage 243,822 Source: ESRI BIS; Marketek e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 87 B. Local and Greater Resident Market Demand The methodology for estimating statistical market support for retail space in the Iowa City resident market areas is displayed in Exhibits R-5 through R-10. This methodology applies expenditure potential1 by type of merchandise to market area population figures in order to obtain potential sales volume for trade area residents. Potential sales are divided among five merchandise and service categories: shopper's goods, convenience goods, food & beverages, personal services and other retail expenditures. Note that gas and auto-related sales and service are not included as these are not retail sales typically desired in the downtown business district. Exhibit R-5 defines the types of goods and services within several of these categories. For instance, "apparel" includes women's apparel, men's apparel, children's apparel, footwear, watches and jewelry. EXHIBIT R-5 SUMMARY OF MERCHANDISE AND SERVICE CATEGORIES Merchandise/Service Category Types of Goods/Services Apparel Women's Apparel, Men's Apparel, Children's, Footwear, Watches & Jewelry Home Furnishings Furniture, Floor Coverings, Major and Small Appliances, Household Textiles, Floor Coverings, PC Software and Hardware, Housewares, Dinnerware, Telephones Home Improvement Maintenance and Remodeling Materials, Lawn & Garden, Hardware Misc. Specialty Retail Pet Care, Books & Periodicals, Sporting Equipment, Toys & Hobbies, Video Cassettes & Games, TV /VCR/Cameras, Audio Equipment, Luggage, Eyeglasses Groceries Food at Home, Nonalcoholic Beverages at Home, Alcoholic Beverages, Smoking Products Restaurants Food Away From Home, Alcoholic Beverages Entertainment Admission to Movie/Theater/Opera/Ballet, Recreational Lessons, Participation in Clubs Personal Services Shoe Repair, Video Rental, Laundry & Dry Cleaning, Alterations, Clothing Rental & Storage, Watch & Jewelry Repair, Photo Processing & Supplies, Child Care Source: ESRI BIS 1 Consumer spending is estimated from the Bureau of Labor Statistics' Consumer Expenditure (CEX) Surveys. The CEX surveys hove been used for over 0 century to provide data to study consumer spending and its effect on gross domestic product. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 88 Exhibit R-6 depicts potential retail sales for the Iowa City local retail market area for the 2007-2017 time frame. Estimates of sales per square foot of store space derived from the Urban Land Institute's Dollars and Cents of Shopping Centers are used to convert adjusted potential sales to supportable space estimates. In Exhibit R-6, for example, in the case of apparel, potential sales of $73,368,562 in the local market area at sales per square foot of $209 will support 351,046 square feet devoted to this type of merchandise. Note that throughout the demand analysis, demand generated by the greater retail market area encompasses that generated by the local retail market area. Exhibit R-6 shows that in 2007, there is the potential for approximately 2,441,567 square feet of retail space based on potential expenditures of residents who reside full-time in the Iowa City local retail market area. That is, local retail market area residents have the potential to generate sales demand that will support 2,441,567 square feet of retail space. However, these potential expenditures by residents may occur outside of the trade area if desirable goods and services are not available locally. Exhibit R-6 also conveys the same analysis for 2012 and 2017. By 2012, potential local trade area sales of $642.6 million will support 2,598,179 square feet of retail space, growing to $683.8 million by 2017 with 2,764,836 square feet in retail space potential. Spending Target 2007 2012 2017 Merchandise or per Sales* Retail Potential Retail Potential Retail Potential Service Category Hhold ($/SF) Soles Space (SF) Soles Space (SF) Soles Space (SF) Apparel $2,128 $209 $73,368,562 351 ,046 $78,074,702 373,563 $83,082,713 397,525 Home Furnishings $1,371 $199 $47,283,418 237,605 $50,316,358 252,846 $53,543,842 269,065 Home Improvement $820 $140 $28,277,217 201,980 $30,091,026 214,936 $32,021,180 228,723 Misc. Specialty Retail $1,946 $216 $67,116,201 310,723 $71,421,292 330,654 $76,002,527 351 ,864 Shoppers Goods $216,045,398 1,101,354 $229,903,378 1,171,999 $244,650,261 1,247,176 Grocery $5,509 $390 $189,982,693 487,135 $202,168,911 518,382 $215,136,799 551 ,633 Health & Personal Care $1,357 $365 $46,790,627 128,193 $49,791,957 136,41 6 $52,985,804 145,167 Convenience Goods $236,773,320 615,329 $251,960,868 654,798 $268,122,603 696,799 Restaurants $3,438 $263 $118,573,914 450,851 $126,179,699 479,771 $134,273,348 510,545 Entertainment $383 $90 $13,194,651 146,607 $14,041,006 156,011 $14,941,650 166,018 Personal Services $558 $151 $19,241,308 127,426 $20,475,519 135,599 $21,788,898 144,297 Total $603,828,591 2,441,567 $642,560,470 2,598,179 $683,77 6,7 60 2,7 64,836 IFive Year Net Gain $38,731,879 1 156,6111 $41,216,290 I 166,6571 * Target soles are bosed on the Urban Land Institute, "Dollars and Cents of Shopping Centers." Sources: ESRI BIS; Urban Land Institute; Marketek, Inc. @ 2007 by Marketek, Inc. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 89 Exhibit R-7 displays potential retail sales for the greater market area through 2017. In 2007, there is the potential for approximately 4,554,673 square feet of retail space based on potential expenditures of residents who reside full-time in the greater retail market area. That is, greater trade area residents have the potential to generate sales demand that will support 4,554,673 square feet of retail space. As in the case of the local market area, these potential expenditures may occur outside of the trade area if desirable goods and services are not available. By 2012, potential greater trade area sales of $1.2 billion will support 4,935,863 square feet of retail space, growing to $1.3 billion by 2017 with 5,348,956 square feet in retail space potential. The net gain in both potential sales and square feet from 2007-2017 for the local and greater trade areas appears in five-year increments in the last rows of Exhibit R-6 and R-7. By 2012, growth in the residential population of the greater retail trade area could support an increase of 381,190 square feet in retail space demand, with 156,611 square feet of space supported by the local market area. By 2017, an additional 413,093 square feet could be supported by population increases in the greater market area, with 166,657 square feet supported by local market area residents. Spending *Target 2007 2012 2017 Merchandise or per Soles Retail Potential Retail Potential Retail Potential Service Category Hhold ($/SF) Soles Space (SF) Soles Space (SF) Soles Space (SF) Apparel $2,271 $209 $133,423,742 638,391 $144,590,258 691,819 $156,691,323 749,719 Home Furnishings $1,511 $199 $88,77 6,202 446,112 $96,206,071 483,448 $104,257,761 523,908 Home Improvement $1,025 $140 $60,249,939 430,357 $65,292,384 466,374 $70,756,842 505,406 Misc. Specialty Retail $2,118 $216 $124,453,178 576,172 $134,868,929 624,393 $146,156,395 676,650 Shoppers Goods $406,903,062 2,091,032 $440,957,641 2,266,034 $477,862,321 2,455,684 Grocery $5,998 $390 $352,454,892 903,730 $381,952,588 979,366 $413,919,010 1,061,331 Health & Personal Care $1,503 $365 $88,300,81 0 241,920 $95,690,891 262,167 $103,699,465 284,108 Convenience Goods $440,755,701 1,145,651 $477,643,480 1,241,532 $517,618,475 1,345,439 Restaurants $3,651 $263 $214,536,368 815,728 $232,491,371 883,998 $251,949,066 957,981 Entertainment $414 $90 $24,312,016 270,134 $26,346,740 292,742 $28,551,755 317,242 Personal Services $596 $151 $35,051,640 232,130 $37,985,186 251,558 $41,164,247 272,611 Total $1,121,558,786 4,554,673 $1,215,424,418 4,935,863 $1,317,145,863 5,348,956 1 Five Year Net Gain $93,865,632 1 381,1901 $101,721,445 1 413,0931 * Target soles are bosed on the Urban Land Institute, "Dollars and Cents of Shopping Centers." Sources: ESRI BIS; Urban Land Institute; Marketek, Inc. @ 2007 by Marketek, Inc. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 90 The share of potential supportable space that downtown Iowa City can ultimately support will depend on the success of implementing a comprehensive development program that includes a wide variety of retail, entertainment, housing and office uses. In other words, a passive or segmented approach to redevelopment would likely result in downtown achieving less than its estimated potential. Based on the assumption that a comprehensive program is underway, Marketek estimates that over the next ten years downtown can capture between 24% and 27% of the increase in potential local retail market area retail expenditures, translating into 82,878 square feet of retail space (see Exhibit R-8). Marketek also estimates that downtown Iowa City has the potential to capture between 18% and 20% of the increase in greater retail market area expenditures over the next ten years, representing a total of 149,284 square feet of retail space. Capture rates are primarily based on Marketek's experience in similar shopping districts throughout the nation, downtown's current retail/restaurant and entertainment potential relative to the Retail Market Area and downtown's competitive advantages as development continues. The following summarizes the distribution of demand for new space among shoppers goods, convenience goods, restaurant, entertainment and personal service retail categories. · Shoppers goods account for the largest share of space demanded. Over the next ten years, downtown could capture 82,536 square feet of retail space supported by greater retail market area resident expenditures, with 37,591 square feet (or 46% of that) supported by local retail market area residents. Types of stores that would fall in this category include clothing stores, home furnishings, electronics, pet supplies, hardware and garden supplies. · Marketek estimates that downtown Iowa City could potentially capture 22,100 square feet of convenience goods space supported by local retail market area resident expenditures over the next ten years. This level of potential demand could accommodate a market with prepared foods, small-scale grocery store and/or a drug store/pharmacy. The primary target market for convenience goods in downtown will be nearby residents since consumers are typically willing to travel only a few miles from home for most convenience goods and services. For this reason, additional demand for convenience goods from the greater retail market area is not included. · Downtown should be able to capture 19% of the increase in restaurant sales and 28% of the increase in entertainment sales in the greater retail market area by 2017, resulting in additional demand of approximately 27,085 square feet of restaurant space and 13,002 square feet of entertainment space. Estimated demand is based upon the assumption that by the year 2017, downtown Iowa City will have established itself as an expanded mixed-use commercial center with a wide variety of specialty shopping, entertainment, new housing and office uses. Primary target markets for restaurants and entertainment are local and greater retail market area residents, visitors, students and people who work at nearby businesses. · Over the next ten years, the downtown could capture 27% of personal service space supported by local retail market area resident expenditures, resulting in 4,561 square feet of supportable personal service space. Similar to convenience goods, the primary market for personal services will be those living close to or working downtown. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 91 Merchandise/Service New Supportable Retail Space in Downtown Total New Supportable 2012 2017 Downtown Retail Space Category Supported By Supported by Supported By Supported by Supported Supported Local Area Greater Area Local Area Greater Area By Local By Greater Capture Sq Ft Capture Sq Ft Capture Sq Ft Capture Sq Ft Area Area Shoppers Goods Apparel 29% 6,465 26% 13,980 31% 7,430 29% 16,528 13,895 30,508 Home Furnishings 20% 3,047 18% 6,588 22% 3,501 19% 7,789 6,548 14,377 Home Improvement 22% 2,846 17% 6,154 24% 3,271 19% 7,275 6,116 1 3,430 Misc. Specialty Retail 26% 5,133 23% 11,099 28% 5,899 25% 13,122 11,031 24,221 Subtotal 25% 17,490 22% 37,822 27% 20,101 24% 44,714 37,591 82,536 Convenience Goods Grocery 24% 7,594 10% 7,594 26% 8,702 11% 8,702 16,296 16,296 Health & Personal Care 33% 2,705 13% 2,705 35% 3,100 14% 3,100 5,804 5,804 Subtotal 26% 10,298 11% 10,298 28% 11 ,802 11% 11,802 22,100 22,100 Restaurants 22% 6,362 18% 12,289 25% 7,694 20% 14,797 14,056 27,085 Entertainment 22% 2,069 25% 5,652 25% 2,502 30% 7,350 4,571 13,002 Personal Services 26% 2,125 11% 2,125 28% 2,435 12% 2,435 4,561 4,561 Total 24% 38,345 18% 68,186 27% 44,534 20% 81,098 82,878 149,284 Note: Due to the fact that demand for Convenience Goods and Personal Service businesses is derived primarily from nearby residents, captures are bosed on exclusively Local Retail Market Area demand. Source: ESRI; Urban Land Institute; Marketek, Inc. @ 2007 by Marketek, Inc. Estimates of potential retail space in downtown should be considered conservative based on the fact that expenditures of two key markets - employees of nearby businesses who do not live in either the local or greater retail market area and visitors - fall outside of this model. As discussed in the Retail Target Markets chapter, more than 32,000 potential customers of downtown businesses work within a mile of the pedestrian mall. The visitor market is addressed in the next section. Residents of new housing developed in and close to downtown will further boost potential demand for retail space as a major selling point of new housing will be the ability to walk to shopping and entertainment. In an effort to put the demand estimates into context, Exhibit R-9 shows the average size of several types of businesses that may be appropriate for downtown. In addition to the median size of all businesses within a particular business category, the median size of national, local chain and independent retailers is also shown. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 92 EXHIBIT R-9 TYPICAL SIZE OF SELECTED BUSINESSES Merchandise or Service Median National Local Indepen- Category Chain dent Specialty Retail Appliances 5,956 6,292 5,911 - Art Gallery 1,802 - 1,802 1,907 Arts/Crafts Supplies 8,928 20,957 - 3,070 Beauty Supplies 1,807 1,634 2,450 1,829 Bike Shop 3,440 - - 2,596 Bookstore 10,093 23,000 9,990 2,740 Cameras 2,000 2,000 - - Children's Wear 3,913 4,879 3,054 2,105 Family Shoe Store 4,000 4,113 5,100 2,460 Family Wear 8,000 8,500 3,474 5,132 Gift/Cards 4,200 4,900 3,780 1,653 Hardware 13,200 13,900 - - Home Accessories 7,595 10,215 5,365 2,462 Jewelry 1,500 1,610 1,968 1,200 Luggage 2,500 2,499 - - Men's Clothing Store 3,500 4,319 3,065 2,750 Pet Supplies 7,995 17,600 3,201 3,200 Record/Tapes 4,464 6,178 - 2,017 Sporting Goods 8,465 22,000 4,980 2,995 Toys 7,855 12,000 - 3,344 Women's Ready to Wear 4,400 4,503 3,960 2,145 Convenience Drugstore/Pharmacy 10,920 10,860 16,668 4,977 Supermarket 50,420 49,071 51,495 23,300 Bakery 1,990 4,000 - 1,700 Gourmet Grocery 18,000 - - - Wine/Liquor 3,440 - 6,237 2,920 Personal Services DaySpa 2,875 - 2,563 3,060 Women's Hair Salon 1,400 1,450 1,250 1,361 Nail Salon 1,200 - 1,200 1,200 Picture Framing 1,600 1,703 - 1,588 Health Club 10,249 9,548 5,508 10,249 Mail/Pac kagi ng/Copyi ng 1,278 1,240 - 1,236 Tailor/Alteration 950 - 900 1,035 Video Rental 6,000 6,333 4,240 4,733 Shoe Repair 855 - - 795 Drycleaners 1,800 - 1,800 1,649 Film Processing 1,252 1,600 1,304 1,150 Day Care 4,000 - - 3,901 Laundry 2,114 - 2,150 1,955 Restaurants Restaurant with Liquor 5,204 6,669 5,600 3,362 Restaurant without Liquor 3,581 6,500 3,025 2,625 Bar/Cocktail Lounge 3,821 - - 3,821 Ice Cream Parlor 1,137 1,1 44 1,137 1,116 Coffee/Tea 1,578 1,650 1,624 1,400 Entertainment Cinema 35,022 37,161 35,022 21,250 Source: Urban Land Institute, "Dollars and Cents of Shopping Centers" e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 93 Market area expenditure data can also be utilized to reveal what prices residents will pay and/or the level of their discretionary income they are willing to devote to various goods or services. The Spending Potential Index (SPI) is a measure of market activity that denotes actual dollars spent on certain goods and services. An SPI equal to 100 indicates that consumers are buying or spending at a rate equal to the national average; a SPI greater or less than 100 indicates that consumers are buying/spending above or below the national average, respectively. Exhibit R-10 shows that households in Iowa City's trade areas spend at a rate below the national average in most categories. Spending is highest and above national averages for school books and supplies, videos and DVD purchases and rentals, computer hardware and software and theater, movie, ballet or opera tickets. The message for retailers focusing on the downtown Iowa City market is to emphasize quality services and merchandise that are reasonably priced. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 94 EXHIBIT R-1 0 SPENDING POTENTIAL INDEX OF SELECTED GOODS AND SERVICES Iowa City Retail Market Areas 2007 Merchandise/ Spending Merchandise/ Spending Service Category Potential Index Service Category Potential Index Local Greater Local Greater Area Area Area Area Apparel 83 88 Financial Services Men's 84 91 Investments 76 86 Women's 81 86 Auto Loans 88 98 Children's 84 92 Health Footwear 75 79 Nonprescription Drugs 87 96 Watches & Jewelry 91 97 Prescription Drugs 73 87 Other Apparel 106 109 Eyeglasses and Contact Lenses 80 91 Computer Home Computer/Hardware for Home 99 103 Home Improvement Software/Accessories for Home 101 104 Maint./Remodeling Serv 67 82 Entertainment & Recreation 85 94 Maint./Remodeling Supp 66 85 Entertainment Fees & Admissions 87 94 Household Furnishings Membership Fees 84 93 Household Textiles 86 94 Sports Participation 84 93 Furniture 86 95 Theater/Movies/Ballet /Opera 99 101 Floor Coverings 72 85 Sporting Events 92 99 Major Appliances 78 91 Recreational Lessons 78 88 Housewares 83 91 Television & Sound Equipment 91 98 Small Appliances 85 94 Cable Television 86 94 Luggage 90 96 Color Television 93 98 Telephone & Accessories 71 80 VCR/Video Camera/DVD Player 90 98 Child Care 94 99 Video Cassettes and DVDs 105 107 Lawn & Garden 69 86 Video Game Hardware/Software 103 106 Moving/Storage 101 105 Satellite Dishes 84 94 Housekeeping Supplies 84 94 Video/DVD Rental 108 109 Insurance Audio Equipment 97 101 Homeowners/Renters 71 87 Rental & Repair of TV/Sound 103 104 Vehicle 87 95 Pets & Supplies 80 93 Life 73 87 Toys & Games 89 98 Health 76 89 Recreational Vehicles & Fees 71 89 Personal Care Products 92 98 Sports/Exercise Equip & Supplies 78 87 School Books & Supplies 153 137 Photo Equipment & Supplies 89 97 Smoking Products 94 101 Books/M agozin es/Subscrip ti ons 84 93 Transportation Food & Beverages 89 96 Vehicle Purchases 86 97 Groceries 87 95 Gas & Oil 88 98 Bakery & Cereal Products 86 94 Vehicle Maintenance & Repair 89 97 Meats, Poultry, Fish & Eggs 85 94 Travel Dairy Products 86 95 Air Fare 88 94 Fruits & Vegetables 87 94 Hotels/Motels 79 90 Other Foods at Home 88 97 Rental Cars 85 93 Meals at Restaurants 92 98 Food/Drink 85 94 Alcoholic Beverages 100 102 Nonalcoholic Bevs. at Home 88 96 Source: ESRI BIS e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 95 C. Visitor Market Demand According to research conducted by the Travel Industry Association of America (TIA) for the state of Iowa, shopping consistently tops the list of activities for the state's visitors, noted by 23% of visitors surveyed in 2005, followed by dining (21.3%), entertainment (15.2%), touring (10%), and sports events (8.4%). The average household expenditure per leisure trip in 2005 among Iowa visitors surveyed was $243. Average party size was 2.04 and average length of an overnight trip was 2.31 days. Domestic travelers directly spent nearly $5.4 billion in Iowa during 2005, up 7.0 percent from 2004. TIA expenditure estimates are based upon travel defined as activities associated with all overnight trips away from home in paid accommodations and day trips to places 50 miles or more, one way, from the traveler's origin. Within Johnson County, visitor spending has grown steadily from $193 million in 2000 to over $244 million in 2005. During this time period visitor spending increased 5.3% on an average annual basis. Exhibit R-11 presents a straight line projection of visitor spending using the 5.3% growth rate. With that assumption, county-wide spending should reach $271.2 million in 2007, growing to $351.7 by 2012 and $456 million by 2017. $500.00 $450.00 . $400.00 . ,. ,. - $350.00 ,. III l: . ,g $300.00 . ' "E ,. ' l: $250.00 -=- C) $200.00 l: 'C l: $150.00 ~ a. (I) $100.00 $50.00 $0.00 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 ~Actual - . - Projected Source: Travel Industry Association for Iowa Tourism Division; Marketek, Inc. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 96 The Travel Industry Association's research for the Iowa Tourism Division, national visitor spending patterns and Marketek's understanding of the local visitor market were used to establish the distribution of visitor spending among two key spending categories: Food/Restaurants and Retail. Exhibit R-12 depicts the distribution of projected visitor spending by commodity purchased for 2007, 2012 and 2017. Spending is then converted to space demand using industry standards provided by the Urban Land Institute. The net gain in square footage space demand from growth in visitor spending is calculated for the 2007-2012 and 2012-2017 time frames and appears in the last row. By 2012, an additional 98,888 square feet of demand for the selected categories will be generated countywide; by 2017 an additional 128,217 square feet of demand is projected. Target 2007 2012 2017 Retail Category Sales Space Space Space [$/SF) Spending (SF) Spending (SF) Spending (SF) Food, Beverages & Restaurants $327 $51,536,906 157,605 $66,822,366 204,350 $86,641,378 264,958 Retail $216 $37,974,562 175,808 $49,237,533 227,952 $63,841,016 295,560 Total $89,511,468 333,413 $116,059,898 432,301 $150,482,394 560,519 Five Year Net Gain $26,548,430 $34,422,496 Note: Food, Beverages & Restaurants make up 19% of visitor spending and Retail makes up 14%. The remaining 67% of spending is in Hotels & Lodging (50%) and Arts & Entertainment (17%). Source: Iowa Tourism Division, Marketek, Inc. Downtown Iowa City is well positioned to capture a large share of this spending as many visitor attractions are in or near the downtown. Downtown also offers a critical mass of unique shopping and dining experiences that are highly attractive to the visitor market. For these reasons, downtown should be able to capture 50% of anticipated new visitor spending on food, beverages & restaurants and on retail goods, resulting in the potential for 53,677 square feet of new restaurant space and 59,876 square feet of new retail space by 2017. Combined, total new downtown space supported by visitor spending has the potential to reach 113,553 square feet by 2017. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 97 D. Student Market Demand As described in the Student Market section of the first chapter (Retail Target Markets), Marketek estimates that 3,653 college students not included in the local or greater residential market are potential patrons of shops and restaurants in Iowa City and Coralville. A Harris research poll conducted in 2002 found that the average college student has about $287 to spend on discretionary items per month, or about $3,444 per year. Based on this figure, the non-resident student market has the potential to spend an estimated $12,580,932 annually on apparel, entertainment, food at restaurants and other miscellaneous retail goods. The degree to which downtown Iowa City captures this demand, and additional demand created as university enrollment increases, depends on its ability to offer retailers and restaurants attractive and affordable to students. The Harris poll noted that students nationwide spend more than $11 billion a year on snacks and beverages, $4 billion on personal care products and $3 billion on CDs. The final chapter of this report suggests retailers that fit the student market and provides recommendations for increasing their presence in downtown. POTENTIAL DOWNTOWN RETAIL DEVELOPMENT Exhibit R-13 provides a snapshot of total potential supportable retail demand in downtown Iowa City over the next 10 years. Growth from the resident market and the visitor market combined results in potential demand for 282,644 square feet of retail, restaurant and entertainment development. Note that both restaurant and grocery demand for visitors is included in the category of Food/Beverage/Restaurants as defined by the Travel Industry Association. Downtown Iowa City's success in capturing this opportunity will be strongly influenced by a number of factors including the commitment to quality, new development in the urban core (including office and residential), property redevelopment, aggressive marketing, and strong management of the downtown business district. These elements are explained more fully in the final chapter of this report. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 98 EXHIBIT R-13 SUMMARY OF POTENTIAL SUPPORTABLE SPACE Downtown Iowa City 2007-2017 Existing Resident Visitor Total Retail Category Demand (SF) 1 Demand (SF)2 Demand (SF)3 Demand (SF) 2007 2007-2017 2007-2017 2007-2017 Shoppers Goods 19,033 82,536 53,677 155,246 Convenience Goods 0 22,100 NA 22,100 Restaurants 774 27,085 NA 27,859 Entertainment 0 13,002 NA 13,002 Personal Care 0 4,561 NA 4,561 Food, Bev. & Rest. NA NA 59,876 59,876 ITotal (SF) 19,807 149,284 113,553 282,644 1. From Retail Demand Section A: Existing Retail Balance. 2. From Retail Demand Section B: Local and Greater Resident Market Demand. 3. From Retail Demand Section C: Visitor Demand. Source: Marketek, Inc. e lI'Iar...ete... RETAIL MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 99 CHAPTER 4 HOUSING MARKET ANAL YSIS PROFILE OF RESIDENTIAL MARKET This section provides a demographic profile of households making up downtown Iowa City's residential market area, or the geographic area from which the majority of potential residents of new downtown housing will emanate. The residential market area is based on the location of existing competitive supply and geographic or man-made boundaries and is defined as a 20-mile radius from the intersection of Washington and Dubuque streets (see map below). The delineation of this market area is not meant to suggest that prospective residents of downtown housing will be drawn solely from this geographic area. Because of Iowa City's national prominence, competitive assets and ongoing and proposed development activity, prospective residents will also be drawn from outside of the local market area. Iowa City, Iowa Residential Market Area ~) I .... ", "f',:?: .,~.. I( , . . . - -- ,.lo",~". " :J~ ijwlrirrr- -~~llr/rins-" '~A....f;...;;; "1~,1 T~. ji~, i ':1 " .~'-=:-:-:./ "n~61 P."nh1" . ..} ._<.....!. . '0:.. ""~J]1'i"""" - ',t~ I ~ . . .JI-'~":"'-f1Fj1' . ~, ,( .... -.., ....:.~ ,"1'\ ~ I ':":...i~ I" \:O.f:l_..' ',~~'''',$: .";-~ Ced~f; ~.. s.~t ,,~ i 'x, _ . I i EO< '9:------- ..r-::.!'i.,.,,~;l a "\ ~~'-->--3;Z- -:.~-------.-~ . -----'.....- , C(Xlnt)'.. E<l~ H~ .jri' ~", lir..Y.i..... 1\<001.-.- StqJr.' P.,rt. [ "'- _ - -'. r;~_ _ ../ -......",. ../ ~. I h;/ r .EI~, j I ~ " C;O_1I1ty 1-1'...1' f.: i \" ('., til 1 " ~ " r"-\. I I",,:, ", '.11. ~-.~ 11 ~, ".r-fJs.:t-. , t;r;5~ ~C~.!!I-"....J:1w.l! Flu .,~ -;h^": ",: ~~oi~n C€tjar ) '.~B>.--;.. - - "T' . f", ._ COIJII/L Hw'l _ 8, . '1 a.:J.{I!'~ .'.... . -J~~ " 'f T..~ "..~:.o~"'Et1 -i ,,~~ 0 /' J ..."l ~'J' '-. J~ on . ..--' ~.~~ ! . ~." Iowa " . "'ti-"', Q~ ',: ....'3S~~ . I 1 ,0.>.... ""' 1Io ,1 a ',-" / -"".:-..... . . (. ~W> ~ It.... '.,'.j:':'j",. ,,,,... CO ,"- ~ C~t;I 'J ~)' I "r~ ~.>r';ffi,,' 'X}.../ ~ 1 "f .. ~ ~.l ~ .... .CCl.l!l.tl~5_ J -~i w~~n stl~~.bl"~~ '\\~- U'" 1~::4 ".:. lit' .....> "" , I .' .-,". 'Tr' I"'~ .....~.,.., ...... '. S(l.l!ll~~ 1trr.',.F~2'~ ..;.;,.... ,. I '.~ ~\ '. , '.... ..' ",~'J~ /C.f \:~I; .'....., '. '. ",' .~. ,'- /.CQ~Dt"!'..HW\'{6;! J., "~ weMli)pr.rlY ''f;' . - ----;.."Zl~ . . J' (>IJ11 t'j.t1 WI' F~7 [ ,.$- ~ " .. I 1115L1I~J [i,.~ )0)~, ._ .,.....:.~~aJOJ..-r-.....Ri't(J;,ij ti . NklwJ$---i rI Lt>fT~ Trllo, ' .............:~.~!-I:l(;:Ilil ~ ,:/ :oX. ("- -"y.J . ID' _ eoulrt~ H.-rJ~:2&...~ -.. l-'~. --,-.... 'S{~~ Jr.,' c()nL'5Vi!I~, ~lbt1.S1 , ,...., t . 7~/ :j-../ /;'/ -=- ....,...1:\ ' - -"~'J ~ _ 'l)"" ~ ,.., ~ J: ;:., i r.> 1":-; :r. I /;1~) "'T . " ~. ,.....C0IDl11'Jh\i,v.G2 .1 I.. ---:':"_--..~.._ ':l" 1,...'3~11r1l;iJ:J11 ...) West:.CtJe" tel' ." - T. CS; ':'Ii e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 101 A. Population and Household Growth As Exhibit H-1 shows, the residential market area contains an estimated 63,982 households and 158,204 residents as of 2007. The household growth rate in the residential market area since 1990 outpaced that of the state with an annual average of 2.34% compared to 0.83% statewide. Population in the residential market area grew by an annual average of 1.63% since 1990, compared to 0.54% statewide. Although household and population growth rates are expected to slow in both geographies for the 2007-2012 period, projected growth rates for the residential market area remain well above those of the state. Forecasts indicate that an average of 1,064 new households will enter the residential market area annually for the next five years, bringing the number of households to 69,304 by 2012. Market area population is projected to reach 169,243 in 2012 and the average household size should remain steady at 2.3. EXHIBIT H-1 POPULATION & HOUSEHOLD GROWTH Iowa City Residential Market Area and State of Iowa 1990-2012 Avg. Ann. Change A vg. Ann. Change 1990-2007 2007-2012 Geographic Area 1990 2007 Number Percent 2012 Number Percent (Estimate) (Forecast) Residential Market Area Population 1 23,829 158,204 2,022 1.63% 169,243 2,208 1.40% Households 45,792 63,982 1,070 2.34% 69,304 1,064 1.66% Avg. Household Size 2.47 2.33 -0.008 2.31 -0.004 state of Iowa Population 2,776,755 3,030,140 14,905 0.54% 3,110,913 16,155 0.53% Households 1 ,064,325 1,213,728 8,788 0.83% 1,253,509 7,956 0.66% Avg. Household Size 2.52 2.41 -0.006 2.40 -0.002 Average Annual Household Growth Rates, 1990-2012 2.5% 1.5% 2.0% 1.0% 0.5% 0.0% Residential Iowa .1990-2007 Avg. Ann. Change 1iI2007-2011 Avg. Ann. Change Source: ESRI BIS; Marketek, Inc. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 102 B. Age, Income and Employment Trends Exhibit H-2 provides a snapshot of age, income and employment trends for the residential market area and the state of Iowa. As shown, the residential market area tends to be younger than the state, no doubt due to the presence of University students. Median age in the market area is 30.3 years compared to state's median age of 37.9 years. In terms of household income, the residential market area has a greater proportion of households with incomes below $15,000 than the state (12.3% versus 10.8%), but also has a larger percentage of households with incomes in excess of $100,000 (19.0% versus 14.3%). The increased presence of low income households in the market area is likely influenced by the high concentration of University students it contains. Median household income in the market area is slightly above that of the state at $50,428. Employment in the residential market area is heavily concentrated in the service industry and in white collar jobs, with many residents employed in educational and healthcare services. Service industry jobs make up 57.4% of market area employment, compared to 41.4% statewide, and white collar occupations make up 65.8%, compared to 56.5% in Iowa. Demographic Residential state of Demographic Charactersitic Residential state of Charactersitic Market Area Iowa Market Area Iowa Age Household Income Under 15 17.0% 19.2% Under $15,000 12.3% 10.8% 15 to 24 23.2% 15.0% $15,000 to $34,999 21.8% 22.9% 25 to 34 16.1% 12.3% $35,000 to $49,999 15.5% 17.0% 35 to 44 12.8% 13.2% $50,000 to $74,999 18.9% 22.4% 45 to 64 22.5% 26.0% $75,000 to $99,999 12.5% 12.6% Above 64 8.4% 14.3% $100,000 and Above 19.0% 14.3% Total Number 158,204 3,030,140 Total Number 63,982 1,213,728 Median Age 30.3 37.9 Median Income $50,428 $49,331 Employment by Industry Employment by Occupation Services 57.4% 41.4% White Collar 65.8% 56.5% Retail Trade 11.4% 12.3% Blue Collar 18.7% 27.9% Manuf./Const. 14.0% 21.5% Services 15.6% 15.6% Information/FIRE 7.7% 8.9% Total Number 91,127 1,575,837 Other 9.5% 15.8% Total Number 91, 1 27 1,575,837 Source: ESRI BIS e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 103 To understand how household income relates to householder age, Exhibit H-3 provides income distributions by age. For householders under age 25, which includes most University of Iowa students, household incomes are concentrated below $15,000 (37.6% of households) and from $15,000 to $24,999 (23.5% of households). The $50,000 to $74,999 income bracket is the most populated for remaining age groups. Twenty-one percent (21.3%) of householders age 25 to 34 have household incomes between $50,000 and $74,999 and another 20.9% have incomes from $35,000 to $49,999. For householders age 35 to 44, just under a quarter (24.1 %) have household incomes between $50,000 and $74,999; seventeen percent (16.5%) have incomes from $75,000 to $99,999. As the Creative Cluster Analysis (Chapter 7) discusses, these age groups will be important markets for newly developed downtown housing as Iowa City strives to attract members of the creative class. The highest income age group is householders between 45 and 64 - 21.1% have household incomes between $50,000 and $74,999; 18.1 % have household incomes between $75,000 and $99,999 and 19.4% have household incomes between $100,000 and $149,999. Household incomes are most evenly distributed for householders age 65 and over - each of the five lowest brackets contain about 15% of households. EXHIBIT H-3 AGE BY INCOME PROFILE Residential Market Area 2007 Householder Age Household Income Under 25 25-34 35-44 45-64 65 and Over Under $15,000 37.6% 12.8% 5.8% 4.4% 14.2% $15,000 to $24,999 23.5% 12.3% 6.7% 6.0% 15.7% $25,000 to $34,999 14.6% 12.9% 8.7% 6.6% 14.8% $35,000 to $49,999 14.6% 20.9% 15.8% 12.4% 15.0% $50,000 to $74,999 5.3% 21.3% 24.1% 21.1% 16.3% $75,000 to $99,999 1.9% 10.5% 16.5% 18.1% 7.6% $100,000 to $149,999 1.3% 7.6% 13.8% 19.4% 9.1% $150,000 to $199,999 1.0% 0.8% 3.9% 5.8% 4.4% $200,000 and Above 0.3% 0.8% 4.7% 6.2% 2.9% Total Households 8,808 13,830 11,450 21,303 8,586 Source: ESRI BIS e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 104 Household Income by Householder Age 40.0% 35.0% '" 30.0% "C 0 ..r:: 25.0% ~ '" ::) 0 :I: 20.0% '0 - l: 15.0% ~ u Iii f1. 10.0% 5.0% 0.0% Under $15,000 Source: ESRI BIS $15,000 to $25,000 to $35,000 to $50,000 to $75,000 to $100,000 $150,000 $24,999 $34,999 $49,999 $74,999 $99,999 to to $149,999 $199,999 ~Under 25 _25-34 -'-35-44 _45-64 ~65 and Over $200,000 and Above C. Community Tapestry Segments As described in the Retail Target Markets chapter, ESRI Business Information Solutions categorizes neighborhoods throughout the nation into 65 market segments sorted by a variety of demographic and socioeconomic characteristics and other determinants of consumer behavior. The top ten market segments in the Iowa City residential market area appear in Exhibit H- 4. As shown, the two largest market segments are Aspiring Young Families and Enterprising Professionals with 13.8% and 10.9% of households, respectively. While the residential preferences of the former segment favor single family detached homes or townhouses, the latter enjoy living in newer, higher density housing and prefer to own rather than rent. Other top market segments whose members tend to live in high density, mixed-use environments are College Towns, Metropolitans, Young and Restless and In Style. For detailed descriptions of Tapestry market segments, refer to Appendix 1-A. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 105 EXHIBIT H-4 TAPESTRY MARKET SEGMENTS Residential Market Area 2007 Market Segment 1 Aspiring Young Families 2 Enterprising Professionals 3 Crossroads 4 Dorms to Diplomas 5 College Towns 6 Metropolitans 7 Young and Restless 8 Exurbanites 9 In Style 10 Green Acres Total Households Source: ESRI BIS; Marketek, Inc. RESIDENTIAL SUPPLY Percent of HHs 13.8% 10.9% 7.6% 7.3% 6.9% 6.3% 5.8% 5.7% 4.6% 4.4% 46,899 This section provides an overview of the existing Iowa City area housing market and the residential product currently available in or planned/ proposed for downtown. The summary of local housing characteristics, together with assessments of the local for-sale and rental market, is intended to shed light on where the community's housing market is currently positioned in order to adequately plan for future downtown residential development. A. Existing Housing Profile Exhibit H-5 summarizes the characteristics of the existing housing supply in the City of Iowa City, the residential market area, the Iowa City MSA and the state of Iowa. As shown, Iowa City has a greater proportion of renters than owners, while in the state of Iowa nearly three-quarters of households are homeowners. The high percentage of rental housing in Iowa City is due to the prevalence of households composed of University students, who typically rent their apartments or homes, and of young professionals/recent graduates that rent. Median rents in the city, the residential market area and the MSA are higher than in the state. Similarly, median home values are significantly higher in the city, the market area and the MSA than statewide. Regardless of geography, detached single-family units compose the largest share of housing, followed by structures with ten or more units. Mobile homes make up 4.4% of housing units in Iowa City, 7.9% of those in the market area, 6.8% of those in the MSA and 4.9% of units statewide. In all geographies except the city the share of mobile homes is higher than the share of single family attached units. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 106 Housing Characteristic City of Residential Iowa City state of Iowa City Market Area MSA Iowa Occupied Units (2007) 27,570 63,983 59,863 1,213,728 Owner-Occupied 48% 62% 61% 74% Renter-Occupied 52% 38% 39% 26% Owner-Occupied Unit Value (2007) Median $170,076 $161,265 $16l,797 $113,209 Average $194,229 $193,241 $194,627 $139,871 Contract Rent (2000) Median $507 $514 $487 $383 Average $549 $597 $516 $397 Units in structure for Occupied Units(2000) Single Family Detached 42.3% 54.3% 54.1% 75.3% Single Family Attached 5.6% 5.6% 5.8% 2.2% 2-4 Units 10.7% 8.5% 8.7% 6.7% 5-9 Units 11.0% 7.6% 7.8% 3.5% 10+ Units 26.0% 16.1% 16.8% 7.4% Mobile Home 4.4% 7.9% 6.8% 4.9% Other 0.0% 0.0% 0.0% 0.0% Median Year Occupied Units Built (2000) 1973 1974 1973 1959 Source: ESRI BIS Exhibit H-6 reveals that the number of building permits issued for residential units statewide increased on average less than 1 % annually between 1994 and 2006. While permits for single family units increased at an average annual rate of 2.5%, multifamily permits declined an average of 123 units annually. In Iowa City, the number of permits issued declined regardless of unit type, going from 569 in 1994 to 293 in 2006. As the graph in H-6 shows, the number of single family units permitted peaked at 209 in 1999 and the number of multifamily permits peaked at 546 in 2003. Trends are similar in the MSA, with both single and multifamily permit numbers peaking in 2003. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 107 e lI'Iar...ete... EXHIBIT H-6 RESIDENTIAL BUILDING PERMITS ISSUED City of Iowa City, Iowa City MSA and State of Iowa 1994-2006 Unit Type Avg.AnnualChange 1994-2006 Number Percent 1994 2006 City of Iowa City Single Family Units Multifamily Units Total Units Permitted 206 363 569 137 156 293 -6 -2.8% -17 -4.8% -23 -4.0% 7 1.0% -14 -2.6% -8 -0.6% 196 2.5% -123 -2.7% 74 0.6% Iowa City MSA Single Family Units Multifamily Units Total Units Permitted 644 538 1,182 722 368 1,090 State of Iowa Single Family Units Multifamily Units Total Units Permitted 7,893 4,577 12,470 10,250 3,107 13,357 Units Permitted in Iowa City 800 700 600 500 400 300 200 100 0 1994 1996 1998 2000 2002 2004 2006 _Single Family Units ~Multifamily Units -'-Total Units Source: Iowa City Building Department; U.S. Census Bureau HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 108 B. Trends in Residential Sales National Trends The most recent housing cycle, which began an upward trend in the early 2000s, has endured longer than most cycles. The cycle has been sustained by record-low interest rates (rates declined to 45-year lows) and the prevalence of "creative" mortgage financing. "Exotic" mortgage loans, such as adjustable rate mortgages with low initial interest rates, interest-only mortgages and mortgages with reduced down payments or extended terms of 40 or 50 years, have helped drive homeownership rates in the US from around 64% two decades ago to a peak of almost 70% in recent years. Also called "affordability loans," these new mortgage products have gone mostly to first- time homebuyers and borrowers with tarnished credit or spotty employment histories. Lower rates allow homebuyers to obtain larger loans without higher monthly payments. In the case of adjustable rate mortgages, however, some homebuyers have faced difficulties keeping up with monthly mortgage payments as they adjust beyond their initial rates. In some cases troubled loans have gone into foreclosure, while in others homeowners have opted to refinance in favor of fixed-rate mortgages. The recent Mortgage Bankers Association National Delinquency Survey reveals that while 0.50% of prime loans were in foreclosure in the 4th quarter of 2006, 4.53% of subprime loans were in foreclosure. As the lower end of the mortgage market weakens, for-sale residential development proceeds with an increased sense of caution. During 2004 and 2005 condominium sales soared nationwide, due not only to low interest rates but also to rising single family home costs and increasing investor interest. In response to these market conditions, an increasing number of multifamily builders have shifted their focus from the rental to the for-sale sector. Despite strong sales nationwide, condominium developers were not immune to elevating residential construction costs in 2005 and 2006. To combat rising costs, developers scaled back proposed projects or opted to build higher-end product targeted at affluent young singles and couples and empty nesters. There is less sensitivity to prices as well as price-per-square-foot in these markets than in the entry- level market. Local Trends As always real estate markets remain intensely local. In Iowa City, adverse effects on the condominium market such as rising interest rates and increasing construction costs are being mitigated somewhat as demand is bolstered by a healthy job market and a limited supply of condominium product. Also, the adverse effects of subprime lending have been limited in the Iowa City market where banks rather than mortgage bankers have historically been the primary source of home loans. As condominiums become more popular in the Iowa City area, the investor market will expand. Investors may buy or sell a property to capture appreciation increases (sometimes before construction is complete) or they may hold the property to rent it out for a long term return on their investment. The most obvious reason to limit investor activity is that in markets with high investor activity, such purchases obscure underlying demand and can lead to overbuilding. Also, in a correction in housing e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 109 prices, heavy investing in a market will make the correction more severe because investors will walk away faster than homeowners. If they walk away in droves, it will drive down prices even faster. Further, builders do not want a lot of turnover; they want stable communities with residents who want to make a long term commitment. As shown in Exhibit H-7, home prices in the Iowa City area have increased significantly from 2001 to the first quarter 2007. In Iowa City, the average annual change in prices, median and average, was 5%. By 2007, median and average prices of homes in Iowa City were $174,000 and $199,249, respectively. Within the area, the largest average annual increases in median and average prices of homes between 2001 and 2007 were in Coralville at 14% ($236,450) and 13% ($262,216), respectively. North Liberty also saw significant average annual increases in median and average home prices during this period, 9% ($173,400) and 7% ($179,346), respectively. Johnson County registered an average annual increase of 7% in median and average prices during the years 2001-2007. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 110 Year 2001 2002 2003 2004 2005 2006 2007 (1 st Qtr) Avg. Ann. Chg. $250,000 $200,000 $150,000 $100,000 $50,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Soles Price Iowa City Coralville North Liberty Johnson County Median Average Median Average Median Average Median Average $134,000 $153,974 $129,950 $149,796 $114,900 $125,757 $128,500 $148,167 $140,000 $155,249 $136,450 $1 62,584 $131,888 $144,276 $136,705 $154,800 $147,500 $171,857 $145,000 $171,864 $141,650 $148,034 $145,000 $166,370 $157,608 $184,738 $159,900 $194,394 $156,247 $165,405 $157,000 $180,790 $162,900 $187,660 $166,250 $205,535 $159,900 $169,219 $1 62,000 $185,573 $165,000 $190,468 $180,000 $215,773 $152,900 $164,523 $1 62,700 $189,604 $174,000 $199,249 $236,450 $262,216 $173,400 $179,346 $180,000 $209,1 57 5.0% 4.9% 13.7% 12.5% 8.5% 7.1% 6.7% 6.9% Median Sales Price $0 2001 2002 2003 2004 2005 2006 2007 (Q1) ~Iowa City _Coralville _Johnson -'-N. Liberty Average Sales Price $0 2001 2007 (Q1) 2002 2003 _Coralville 2004 2005 2006 ~Iowa City -'-N. Liberty _Johnson Source: Iowa City Area Association of Realtors e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 111 Exhibit H-8 displays sales of single family units in Iowa City and in the area defined as "Iowa City, Coralville, North Liberty" for 2006. The purpose of this exhibit is to provide a picture of where housing sales are positioned in regard to price in the Iowa City area. Residential sales in the Iowa City area in 2006 were concentrated in the less than $150,000 categories. The largest proportion of sales, almost one-third, was in the $100,000 to $150,000 range. More than a quarter of sales were in the $150,000 to $199,999 range. Sales fall off to 14% of total sales in the $200,000 to $249,999 range and to only 8% in the $250,000 to $299,999 range. Sales over $300,000 comprise only 10% of total sales. EXHIBIT H-8 SINGLE FAMILY HOME SALES Cities of Iowa City, Coralville and North Liberty 2006 Iowa City Iowa City, Coralville, Sales Price North Liberty Number Percent Number Percent Under $100,000 93 9% 236 12% $100,000 - $149,999 328 32% 619 31% $150,000 - $199,999 263 26% 502 25% $200,000 - $249,999 145 14% 260 13% $250,000 - $299,999 85 8% 165 8% $300,000 - $349,999 42 4% 88 4% $350,000 - $399,999 29 3% 51 3% $400,000 - $499,999 26 3% 44 2% $500,000 - $749,999 11 1% 23 1% $750,000 - $999,999 2 0% 3 0% $1,000,000 and above 0 0% 1 0% Total 1,024 100% 1,992 100% Source: Data prepared by Kevin Hanick, Broker/Realtor, Lepic-Kroeger, Inc. Competitive Attached For-Sale Housing Market This section provides a summary of new condominium development (Le., non-student attached for-sale units) in the Iowa City area. As of September 2007, there were approximately 90 condominium units for-sale in the Iowa City, Coralville and North Liberty areas. With a few exceptions, condominium units in these areas have historically been characterized as "apartment style" or "suburban style" units - Le., two-bedroom/two-bath units with prices that generally top out at around $125,000. In 2006, more than one-half of condominium sales in Coralville and North Liberty were less than $120,000. Sales of this type of housing product have been strong during the past two years In the Iowa City area. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 112 "Suburban style" condominium projects currently underway include: Elk Run Condominiums Location: Number of Units: Number of Floors: Status: Date Sales Began: Number of Units Sold: Preconstruction Absorption: Prices/Sizes: Amenities: Three Bull 4- Plex Development Location: Number of Units: Number of Floors: Status: Date Sales Began: Number of Units Sold: Prices/Sizes: Amenities: Foster Road off North Dubuque Street 5-8 minute drive from downtown 2 buildings, 12 units each 3 stories 1 building completed Late 2006 7 units 1.17 units per month 2-bedroom: $204,200-$215,500/1,286 SF 3-bedroom: $245,000-$252,500/1,524 SF Located in wooded greenspace area across from a golf course Brown Deer Subdivision Coralville 1 building, 4 units 2 stories Christmas 2007 occupancy 2007 o units 1-level units: $399,000/2,300 SF 2-level units: $440,000/2,900 SF Ten year old, 100-acre golf course community with 18 existing units; Resales listed at $489,000 and $449,000 In contrast to the prevailing suburban style attached for-sale product, several recent projects in the Iowa City/Coralville area are harbingers of an emerging higher density housing market. They include: Plaza Towers One of the most prominent recent additions to downtown Iowa City is the Moen Group's Plaza Towers, a 14-story, mixed-use high-rise on the pedmall that opened in 2005. The residential component of the building initially consisted of 28 condominium units on five stories and 27 apartments on three stories. Initial condominium pricing was about $210/SF plus $13,000 for parking. Prices rose quickly after the first few units sold and continued to increase as the building sold out. In five cases, buyers purchased two units and combined them. Additionally, 6 of the 27 original rental units were sold as condominiums, bringing the total number of for- sale units in the building to 29. Units are currently valued at about $350/SF ($450/SF for penthouses) plus $18,000 for parking. A 1,000 square foot resale was listed for $425,000 but was recently reduced to $375,000. Additional uses in Plaza Towers include a boutique hotel, office and meeting space, a restaurant, a gym, a healing center and retail space (currently vacant) . e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 113 Riverbend Location: Number of Units: Number of Floors: status: Date Sales Began: Number of Units Sold: Absorption: Prices/Sizes: Amenities: Iowa River Landing Site in Coralville Master Developer, DESCO Group 1 building, 42 units 4 floors Occupancy underway Late 2006 16 units 2.6 units per month 6 1-bedroom units, 466 SF - 922 SF 36 2-bedroom units, 888 SF - 2,055 SF Price Range: $88,000 - $524,000 Located in the Iowa River Landing Master Plan Community which will include retail, office, hotel, convention and a mid-size arena Additional higher density condominium projects planned and proposed for the Iowa City/Coralville area include: Iowa River Landing Location: Status: Hieronymus Square Location: Description: Status: Coralville In addition to Riverbend, two residential towers planned Downtown Iowa City Mixed-use development including a residential tower with a maximum of 200 condominium units priced at up to $400 per square foot; Hotel component with possibility of conversion to condominiums; $40-$50 million project Preliminary site preparation; 2010 completion Three Bulls High Rise/The View Location: Description: Status: Downtown Iowa City Mixed-Use Not announced C. Local Rental Housing Market The downtown Iowa City rental market is characterized by a mix of units marketed toward students attending the University of Iowa and apartments targeted at professionals working in or near downtown. According to Cook Appraisal, there are an estimated 1,852 rental units in the downtown.2 With its ideal location for students and downtown employees, rental properties in downtown command rents above those of other nearby submarkets (non- 2 Cook Appraisal defines downtown Iowa City as the Pentacrest Zone, which is bordered on the North by the Iowa River, the South by Highway 6, the West by Sunset Street and the East by Governor and Summit Streets. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 114 downtown Iowa City, Coralville and North Liberty). Average rent for the downtown in 2005 was $747, which Cook estimates has increased by 3% to 4% over the past two years. This estimate puts average downtown rents at $769 to $777. Rents in other markets have been more stable, increasing by about 2% in that time period. According to Cook Appraisal estimates, they now range from $537 in Coralville to $698 in non-downtown Iowa City. The vacancy rate in downtown is estimated at about 2%, relatively unchanged since 2003, and is below the vacancy rates of non-downtown Iowa City (4.5%), Coralville (6.4%) and North Liberty (3.8%). The low vacancy rate indicates the tight apartment market in downtown, likely due to the student and young professional markets seeking housing near school or work. Competitive Rental Product Apartments marketed toward undergraduate students are typically three- to four- bedroom units in mid-rise buildings with fewer than 100 units and ground-floor retail. In non-downtown Iowa City, The Lodge, an apartment complex on Highway 1, offers student housing on a per room basis. A bedroom in a one-bedroom unit starts at $770, in a two-bedroom/two-bath unit at $600 and in a four-bedroom/two-bath unit at $474 per month. Rents cover all utilities, including electricity, water, cable and internet services. Community amenities include a spa/sauna, fitness center, basketball court, game room and tanning room and unit amenities include equipped kitchens, furnished living and bedrooms and walk-in closets. Although student-oriented apartments tend to dominate the downtown Iowa City rental market, there are several higher-end rentals in downtown that enjoy considerable success. Owned and managed by the Moen Group, these buildings include Plaza Towers, Whiteway 2000, Vogel House, Woodlawn Apartments and the Blackstone Building, offering an estimated total of 116 units. Rents for these units run from $660 for efficiencies/one-bedrooms to $2,925 for penthouse suites at Plaza Towers. Unit sizes range from 364 to 1,675 square feet, with prices per square foot from $1.44 to $1.90. Details about each building are listed below. Plaza Towers Location: Number of Units: Unit Rents/Sizes: 201 South Linn Street 21 units-aIl1-bedroom units $990 for 550 SF $1 ,960 for 1,1 00 SF $2,925 for 1,675 SF $1.75/SF - $1.80/SF Balconies, rooftop garden, secure underground parking, staffed lobby Rent/Square Foot: Amenities: e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 115 Whiteway 2000 Location: Number of Units: Unit Rents/Sizes: Rent/Square Foot: Amenities: Vogel House Location: Number of Units: Unit Rents/Sizes: Rent/Square Foot: Amenities: Woodlawn Apartments Location: Number of Units: Unit Rents: Amenities: Blackstone Building Location: Number of Units: Unit Rents: Amenities: 210 South Clinton Street 46 units - efficiencies and 1-bedroom units $690 for 364 SF $800 for 470 SF $1,020 for 635 SF $1.61 /SF - $1.90/SF Concrete floors, track lighting, high speed DSL, security system, laundry facility Linn Street and Iowa Ave 28 units - loft style 1-bedroom units $1,020 for 600 SF $1 ,300-$1 ,350 for 900 SF $1.44/SF - $1.70/SF High speed DSL, security system, parking, laundry facility, fully furnished 20 Evans Street 17 efficiency units, 1- and 2-bedroom units $490 for efficiencies $660 to $715 for 1-bedroom units $830 to $850 for 2-bedroom units Heat and water included in rent, laundry facility, on-site parking, hardwood floors 118 112 South Dubuque Street 11 1-bedrom units $680 to $850 Hardwood floors, ceiling fans, parking at additional charge According to the Moen Group, there are no vacancies in any of their buildings, and leasing typically begins in December for occupancy the following fall. Residents of these units typically include graduate students, professionals and couples. With most of these apartments being one-bedroom units, there is little opportunity for shared living in these apartments, making them less attractive to undergraduates than the three- and four-bedroom units developed by Clark. Planned and proposed downtown apartment development includes one building on Linn and Market which has recently begun leasing and three developments underway on Gilbert and Burlington. The latter consists of one building with larger, multi-floor units and two buildings of three- and four-bedroom apartments positioned toward the student market. Approximately a hundred rental units are planned for the recently-sold St. Patrick's Church site. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 116 RESIDENTIAL DEMAND A statistical demand analysis was performed for the residential market area to estimate the potential market depth for for-sale and rental housing (Exhibits H-9 and H-1 0). Even though the analysis uses finite numbers, the end result (Le., potential market support) should be interpreted as an approximation of market depth that is balanced with the characteristics of the competitive supply. The two main sources of annual potential demand for housing are new household growth and turnover. New household growth is traditionally used to project market growth and is based on population and household growth projections for the residential market area. The owner and renter analyses use the average annual increase in households beginning with the estimated household base in 2007 and the projected 2007-2017 annual increase in new households. In both the owner and the renter demand analysis, the more quantitatively significant source of potential demand, turnover, has as a base the estimated number of owner or renter occupied units existing within the residential market area. Projected owner and renter occupied households are qualified or segmented by owner or renter turnover rates (derived from the 2000 Census), as well as income and household size. For both renters and owners, it is assumed that a majority of prospective homebuyers will live in one- to three-person households. In terms of income, the bulk of potential homebuyers will likely have annual incomes of $45,000 and higher, while prospective renters will have annual incomes between $25,000 and $60,000. Households that will potentially be owners or renters are qualified by income, household size and Tapestry data. Recognizing that estimated potential demand will depend on the housing preferences of new and existing market area households, Tapestry data is used to narrow demand estimates to include households that would be most attracted to new housing developed in the downtown (e.g., young professionals, empty nesters, couples with few or no children, etc.). In other words, the appeal of residential development in and immediately surrounding downtown will vary depending on a household's characteristics or preference/lifestyle choice. For instance, a large family may prefer a house with a big yard as opposed to a loft-style condominium in a mixed- use setting. Over the next ten years, 906 residential market area households will be potential buyers of newly developed higher density market rate housing annually. An estimated 1,298 households in the residential market area are potential new renters at market rate projects in settings annually. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 117 e lI'Iar...ete... EXHIBIT H-9 POTENTIAL ANNUAL DEMAND ANALYSIS FOR FOR-SALE UNITS Residential Market Area 2007-2017 New Household Demand Turnover Annual New Households (1) 1, 109 Total Households (1) 63,982 Owner Propensity 62% Owner Propensity 62% Number 688 Number 39,669 Target Market Adjustment (2) 40% Turnover Rate (5) 10% Number 272 Number 3,832 Income Qualified (3) 56% Target Market Adjustment (6) 40% Number 151 Number 1,514 Household Size Qualified (4) 80% Income Qualified (7) 56% Sub-T otal 120 Number 840 Household Size Qualified (8) 80% Sub-T otal 668 Adjustment Factor 15% Total Potential Annual Market Demand 906 1. ESRI BIS 2. Based on Tapestry data, estimated proportion of new households to whom the proposed type of housing would appeal. 3. Estimated proportion of new households with annual incomes of $45,000 and greater. 4. Estimated proportion of new households with 1, 2 and 3 persons. 5. U.S. Bureau of the Census estimate of the number of owner households that turnover within a 12 month period. 6. Based on Tapestry data, estimated proportion of existing market area households to whom the proposed type of housing would appeal. 7. Estimated proportion of existing households with annual incomes of $45,000 and greater. 8. Estimated proportion of existing households with 1, 2 and 3 persons. 9. Adjustment for households that fall outside this model. Sources: Marketek, Inc.; Census 2000; ESRI BIS HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 118 e lI'Iar...ete... EXHIBIT H-10 POTENTIAL ANNUAL DEMAND ANALYSIS FOR RENTAL UNITS Residential Market Area 2007-2017 New Household Demand Turnover Annual New Households (1) 1, 109 Total Households (1) 63,982 Renter Propensity 38% Renter Propensity 38% Number 421 Number 24,313 Target Market Adjustment(2) 40% Turnover Rate (5) 42% Number 166 Number 10,260 Income Qualified (3) 34% Target Market Adjustment(6) 40% Number 56 Number 4,053 Household Size Qualified (4) 80% Income Qualified (7) 34% Subtotal 45 Number 1,364 Household Size Qualified (8) 80% Sub-T otal 1,085 Adjustment Factor 15% Total Potential Annual Market Demand 1,298 1. ESRI BIS 2. Based on Tapestry data, estimated proportion of new households to whom the proposed type of housing would appeal. 3. Estimated proportion of new households with annual incomes between $25,000 and $60,000. 4. Estimated proportion of new households with 1, 2 and 3 persons. 5. U.S. Bureau of the Census estimate of the number of owner households that turnover within a 12 month period. 6. Based on Tapestry data, estimated proportion of existing market area households to whom the proposed type of housing would appeal. 7. Estimated proportion of existing households with annual incomes between $25,000 and $60,000. 8. Estimated proportion of existing households with 1, 2 and 3 persons. 9. Adjustment for households that fall outside this model. Sources: Marketek, Inc.; Census 2000; ESRI BIS HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 119 POTENTIAL DOWNTOWN RESIDENTIAL DEVELOPMENT Based on an evaluation of the competitive housing market, Iowa City's national prominence and our experience in facilitating residential development in comparable areas, Marketek estimates that during the first ten years of development, downtown has the potential to absorb approximately 2,257 units of market rate for-sale and rental housing (Exhibit H-11). Within the estimated demand for 2,257 residential units, 39% (or 874 units) is for-sale product and 62% (or 1,383 units) is rental product. Marketek estimates that downtown Iowa City has the potential to capture 9.7% of residential market area demand for higher density, for-sale product and 10.7% of residential market area demand for higher density, rental product over the next ten years, the vast majority of which will be new construction with some adaptive reuse. The projection for the potential demand for housing assumes that there will exist marketable for-sale and rental product and that a marketing program for new housing will be underway. EXHIBIT H-11 POTENTIAL SUPPORTABLE FOR-SALE AND RENTAL PRODUCT Downtown Iowa City Capture 2007-2017 Year For-Sole Units Renter Units Total Supportable Space Potential Downtown Potential Downtown For-Sole & Percent Percent Demond Capture Demond Capture Rental For-Sole Rental Units (1) Rote Units Units (2) Rote Units Units Units Units Year 1 906 9.0% 82 1,298 10.0% 130 211 38.6% 61.4% Year 2 906 9.0% 82 1,298 10.0% 130 211 38.6% 61.4% Year 3 906 9.0% 82 1,298 10.0% 130 211 38.6% 61.4% Year 4 906 9.5% 86 1,298 10.5% 136 222 38.7% 61.3% Year 5 906 9.5% 86 1,298 10.5% 136 222 38.7% 61.3% Year 6 906 9.5% 86 1,298 10.5% 136 222 38.7% 61.3% Year 7 906 10.0% 91 1,298 11.0% 143 233 38.8% 61.2% Year 8 906 10.0% 91 1,298 11.0% 143 233 38.8% 61.2% Year 9 906 10.5% 95 1,298 11.5% 149 244 38.9% 61.1% Year 10 906 10.5% 95 1,298 11.5% 149 244 38.9% 61.1% Total 9,058 9.7% 874 12,984 10.7% 1,383 2,257 38.7% 61.3% 1. As shown in Exhibit H-9. 2. As shown in Exhibit H-1 O. Source: Marketek, Inc. @ 2007 by Marketek, Inc. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 120 Based on recent home sales in the Iowa City area and the residential market area's age by income profile (Exhibit H-3), opening price points of downtown housing should range from $150,000 to $230,000. Smaller, more affordable units will appeal to first time homebuyers and retirees looking to downsize, while larger, more expensive units will appeal to move-up or move-over buyers. Although there is clearly demand for units priced above $350,000, it is our opinion that in this market when unit prices rise above this level demand will begin to thin out. Current monthly rents and occupancy rates in downtown suggest a strong rental market that could support market rate rents in the range of $800 to $1,200 for one-bedroom units. These rents assume that the apartment building would offer a unique architectural style and have amenities offered at competitive projects, including ample parking and laundry facilities. Balconies, dishwashers/disposals, cable-readiness and high-speed internet access should also be standard unit features. Many successful rental projects throughout the country incorporate features that were once reserved for owner- occupied homes to reduce the distinction between owners and renters. Private street level entrances, assigned street addresses to individual units, garages and storage with direct access to the unit are some examples. While much of the housing developed in the downtown over the next ten years will target upwardly mobile households, affordably priced workforce housing should also be incorporated into the housing program. Providing a variety of housing options that meet the needs of varying income groups helps to create vibrant, authentic and sustainable communities. Higher density housing and government-sponsored programs work together to create successful mixed-income communities in which lower and higher priced homes blend seamlessly. Target Markets This section characterizes target markets for new/rehabbed for-sale and rental housing in downtown Iowa City in terms of incomes, suggested price points and amenities desired. Please refer to Exhibit H-12 for a summary of these target markets. Entry-level Professionals This market segment consists of recent college graduates age 25 to 35 employed in professional careers. Most households consist of a single person or couple, with few having children. Household income ranges from $30,000 to $75,000. Higher income households ($45,000 to $75,000) are potential buyers of housing priced from $150,000 to $250,000, while lower income households ($30,000 to $45,000) are potential renters of units priced from $750 up. Consumer survey results indicate that most members of this age bracket interested in living in downtown Iowa City would prefer to own condominiums or lofts with two to three bedrooms and two baths. Parking garages, windows/natural light and affordability were the top ranked housing features by this group. Higher-level Professionals Households within this market segment are composed of 1 or 2 persons, some with children, age 30 to 50 employed in professional occupations. Having advanced in their careers, householders are earning more ($45,000+) and spending more on housing ($230,000 for owners and $1,100-$1,400 for renters). Survey results indicate that members of this market favor condominiums or high-rise apartments with two to three bedrooms and two baths. They look for affordability, parking garages, windows/natural light and balconies/patios when choosing housing. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 121 Creative Professionals Young adults employed in creative occupations (Le., artists, designers, architects, media workers) and knowledge workers (Le., doctors, lawyers, scientists) form a subset of the entry-/higher-Ievel professional markets. Drawn to lively, vital urban environments offering a variety of entertainment options, members of this market are potential buyers/renters of both traditional housing and larger adaptable live/work space in downtown Iowa City. Chapter 7 (Creative Cluster Analysis) further characterizes this market and provides next steps for building its presence in downtown Iowa City. Empty Nesters/Retirees Looking to downsize from the single family homes where they raised their children, empty nester and retiree households typically consist of 1 to 2 persons and have incomes of $40,000 or more. Incomes are often augmented by equity, allowing households to purchase homes for $200,000 and up or rent for $950 to $1,200 a month. Survey results indicate that persons age 65 and up interested in living in downtown Iowa City largely favor owning two-bedroom, two-bath condominiums or townhouses. Like other age groups, the desired parking and windows/natural light but also listed storage space, security and views as important housing features. While affordability was still cited as important, it did not top the list of desired housing features as it did for younger age groups. Students University of Iowa students currently occupy the majority of rental housing in downtown Iowa City and will remain an important market as development continues. Young (age 18-25) with incomes typically below $25,000, these households will rent units priced between $700 and $1,200, depending on household size (Le., presence/number of roommates). Survey respondents age 19-24 showed the greatest interest in living in downtown Iowa City when compared to other age groups. The vast majority (approximately 80%) preferred to rent and 2-bedroom, 2- bath high-rise apartments or condominiums were the most desired housing types. Affordability, parking, security systems and washer and dryers were selected by respondents as key features when looking for housing. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 122 EXHIBIT H-12 PRIMARY TARGET MARKETS FOR NEWLY DEVELOPED HOUSING Downtown Iowa City For-Sale Product Rental Product Live/Work Units Occupation Entry-Level Professionals Entry-Level Professionals Creatives/Professionals Age 25 to 35 25 to 35 25+ Household Size 1 to 2 persons, few with children 1 to 2 persons, few with children 1 to 2 persons, few children Income $45,000-$75,000 $30,000-$45,000 $40,000+ Approximate Price Point $150,000-$250,000 $750+ Alone/$l ,200+ Roommate $160,000+ Buy /$900+ Rent Motivations/Preferences Access to work/downtown/ Access to work/downtown/ Seek urban lifestyle public transit/pedestrian trails public transit/pedestrian trails Seek large adaptable spaces Tired of rentals/first time buyer Seek vibrant, mixed-use setting Access to suppliers, customers Investment and resale important Highly Mobile Creative community Seek vibrant, mixed-use setting Relatively mobile Intown lifestyle w/o intown price Relatively mobile Creatives Advertising, marketing, Occupation Higher-Level Professionals Higher- Level Professionals film & music, software Age 30 to 50 30 to 50 developers, inventors, Household Size 1 to 2 persons, some with children 1 to 2 persons, few with children photographers, designers, Income $65,000+ $45,000+ culinary, clothing design, Approximate Price Point $230,000+ $1,100-$1,400 furniture designers, hat makers, Motivations/Preferences Access to work/downtown/ Access to work/downtown/ jewelry design, welders public transit/pedestrian trails public transit/pedestrian trails Move-up or move-over buyer Seek vibrant, mixed-use setting Seek vibrant, mixed-use setting Relatively mobile Value authenticity/community Professionals Investment and resale important More traditional fields of Relatively mobile accounting/finance, education, law, various types of consulting Occupation Empty Nesters/Retirees Empty Nesters/Retirees Age 55+ 55+ Household Size 1 to 2 persons 1 to 2 persons Income $50,000 and/or available equity $40,000 and/or available equity Approximate Price Point $200,000+ $950-$1,200 Motivations/Preferences Possibly close to children Possibly close to children Access to work/downtown/ Access to work/downtown/ public transit/pedestrian trails public transit/pedestrian trails Proximity to cultural activities Proximity to cultural activities Less maintenance, more security Less maintenance, more security Move-over, move-down buyer Seeking intown lifestyle Highly settled Relatively settled Value over investment Occupation Students Age 18 to 25 Household Size Single with/without roommate Income Below $25,000 Approximate Price Point $700 Alone/$l ,200 Roommate/s Motivations/Preferences Close to school, friends Seek vibrant, mixed-use setting Highly mobile Security conscience Source: Marketek, Inc. e lI'Iar...ete... HOUSING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 123 CHAPTER 5 OFFICE MARKET ANAL YSIS Office space potential for downtown Iowa City is analyzed within the context of the greater office market area generally defined as the Cedar Rapids-Iowa City Technology Corridor ("the Corridor"), a geographic area encompassing the 1-380 corridor linking and including Iowa City and Cedar Rapids. Iowa City is the southern anchor of the Corridor and from an office market-dynamics standpoint is self-contained. According to all persons interviewed regarding the Corridor office market, there is little if any movement of office space users back-and-forth between Iowa City and Cedar Rapids.3 Major users of real estate in the Corridor typically own their real estate or lease facilities in their entirety. The major single private user is Aegon, whose six-division presence in Cedar Rapids encompasses nearly 700,000 square feet. In Iowa City, American College Testing (ACT) owns its corporate headquarters office and warehouse/distribution facilities, totaling nearly 200,000 square feet. Information services provider, NCS Pearson, another major Iowa City-area user, fully leases two office buildings plus a call center facility, all three built to the company's specification, in Corridor Technology Center in adjacent Coralville. Overall, the market in Iowa City and immediate vicinity for speculative (Le., built without a leasing precommitment) office space is very limited. "There is more demand for the service/retail kind of commercial space," according to one interviewee. "Commercial space is commercial space - office and retail space are considered largely interchangeable," added another person interviewed. In the leasing market, space designated as "office" or "commercial" commands the same rental rates, which typically range from $12 to $30 per square foot. OFFICE SUPPLY Reliable, consistent current and historical statistical data on office occupancy, vacancy and absorption in the Corridor is unavailable largely due to the small market size. Exhibit 0-1 presents a list of available area office space gleaned from the websites of Iowa Commercial Source and Iowa City Area Development Group. While not a complete inventory of available space in the area, the list is highly representative of publicized available office product. It should be noted that the inventory does not take into account interchangeable, multi-use office/retail facilities but rather focuses on exclusive office space. Including flexible office/retail space in the inventory would increase the tally of current supply, though not significantly. As shown, there is at least 151,147 square feet of available office space in the Corridor as of July 2007. Almost half of available space is located in Coralville (75,380 square feet); a third is in Iowa City (52,655 square feet); and 12.1% in Cedar Rapids (18,372 square feet). 3 Interviewees included local bonkers, real estate appraisers and commercial real estate brokers and developers. e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 125 Building 3800 River Ridge Drive 3425 First Avenue 420 Colton Circle NE 139 40th street 4080 First Avenue 3525 Center Point Rood NE Wells Fargo Building, 327 Second Street Coral Ridge Park Office, 2461 Tenth Street 910 23rd Avenue Corridor State Bonk Building, 2530 Corridor Way 625 First Avenue 806 Fifth Street Ploof Office Suites, 806 5th Street 2651 Crosspark Rood Town Square Building, 520 Tenth Avenue 1195 Boyson Rood 673 Westbury Drive 3030 Northgate Drive 2415 Heinz Rood Grandview Terrace Exec. Suites, 332 S. Linn Street 1700 S. First Avenue 1901 Broadway 220 Lafayette Street Executive Suites 1700 S. First Avenue 2101 ACT Circle 2650 Mormon Trek Boulevard Total Available Space City Cedar Rapids Cedar Rapids Cedar Rapids Cedar Rapids Cedar Rapids Cedar Rapids Coralville Coralville Coralville Coralville Coralville Coralville Coralville Coralville Coralville Hiawatha Iowa City Iowa City Iowa City Iowa City Iowa City Iowa City Iowa City Iowa City Iowa City Iowa City Available Space (sq. ft.) 6,109 3,295 2,868 2,736 2,221 1,1 43 14,600 8,312 6,000 5,000 1,986 1,633 1, 101 20,748 16,000 5,340 8,000 7,000 5,000 2,498 1,897 1,700 1,360 1,200 13,000 11,000 Annual Lease Rote ($$/sq. ft.) $10.25 $11.95 $12.95-$14.75 $8.95 $8.95 $7.00 $14.00 $12.50-$1 4.50 $6.50 $28.00 $10.00 $10-$16 $11.52 - 16.20 $12.75 $13.65 $11.00 $13.56 $11.50 $6.50-$7.00 NA $8.50 $11.00 $15.84-21.36 $5.00 $10.50 $13.50 151,747 square feet NA = Not Available Source: Iowa City Commercial Source; Iowa City Area Development Group OFFICE DEMAND To estimate potential future demand for new office space in the Corridor, projected employment increases are converted to square footage of office space needed. Corridor employment projections are based on 2004 employment estimates for the Iowa City and Cedar Rapids MSAs and 2004-2014 employment estimates for the seven-county Iowa Workforce Development Region 10 area. Because employment fluctuates in response to changing economic conditions over time, estimates of potential demand for office space are general indicators of future demand rather than precise projections. Exhibit 0-2 displays anticipated employment increases for the Iowa City and Cedar Rapids MSAs through 2014. As shown, total employment for the two MSAs (Le, the Corridor) is expected to increase by an average of 3,538 employees per year for a total increase of 24,766 by 2014. e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 126 Average Annual Employment Growth Total Employment Growth Iowa Cedar Technology Technology Employment Category City MSA Rapids MSA Corridor Corridor Construction 38 104 142 994 Manufacturing 29 79 108 756 TCU 134 235 369 2,583 Wholesale Trade 17 37 54 378 Retail Trade 145 235 380 2,660 Finance, Insurance and Real Estate 140 177 317 2,219 Services 667 842 1,509 10,563 Government, Education, Healthcare 291 368 659 4,613 Total 1,461 2,077 3,538 24,766 Source: U.S. Bureau of Labor Statistics; Iowa Workforce Development Agency Exhibit 0-3 provides an analysis of the demand potential for office space derived from projected employment growth in the Corridor for the 2007-2014 period. Average annual change in employment for each employment category is multiplied first by the proportion of employees in each category that are normally expected to utilize office space. The resulting figure (office space user per specific category) is then multiplied by the industry standard average square footage of office space utilized per employee, 245, to yield the potential annual square footage of office demand for that employment category. Potential demand for office space in the Corridor is estimated at 288,328 square feet per year, for a total of 2.0 million square feet through 2014. While it is difficult to project with specificity the amount of square footage that a new office development in downtown Iowa City could expect to lease within a given time period, comparing the supply of available space with potential future demand makes it possible to estimate how long the current supply is likely to last. This knowledge, in turn, provides a basis for assessing the need for new office space in downtown Iowa City. e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 127 EXHIBIT 0-3 POTENTIAL ANNUAL DEMAND FOR OFFICE SPACE FROM EMPLOYMENT GROWTH Cedar Rapids-Iowa City Techology Corridor 2007-2014 Retail Trade 2007-2014 Average Office Sq. Ft. Average Annual Space per Annual Employ User Employee Demand Change Ratio (2) (Sq. Ft.) (1) (2) (2) 142 10% 245 3,479 108 10% 245 2,646 369 20% 245 18,081 54 10% 245 1,323 380 5% 245 4,655 317 90% 245 69,899 1,509 40% 245 147,882 659 25% 245 40,364 3,538 245 288,328 Employment Category Construction Manufacturing TCU Wholesale Trade FIRE Services Government, Education and Healthcare TOTAL (1) 2007-2014 annual net change in employment. (2) Based on standards developed by the Urban Land Institute. Sources: Marketek, Inc.; Iowa Workforce Development; Bureau of Labor Statistics; Urban Land Institute @ 2007 by Marketek, Inc. DOWNTOWN OFFICE MARKET Within Iowa City's downtown/central business district, an area generally bounded by Iowa, Burlington, Clinton and Gilbert streets, office space ranges from first-floor use for multi-story apartment structures to upper-story space in buildings with ground floor retail. Several interviewees observed that retail or office uses are mandated for the first floor of commercial with residential the norm for upper story floors. As one interviewee noted, "Developers use office to get their buildings tall enough to create views [and presumably generate premium rents] for upper-floor residential units." "If you are developing a project with any kind of strong commercial component, you have to put condominiums or apartments above it, because that is what is going to pay e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 128 the freight." As far as the development of new office product, "No one builds spec[ulative] office space," said a person interviewed, "There is no need for the space, because there are no users." There is, according to one interviewee, currently somewhat of a "temporary surge" of activity in leasing downtown Iowa City office space, the result of demand from the campaign staffs of candidates in upcoming presidential primaries/caucuses. Over time, the University of Iowa has reportedly been the single most prolific user of office space in Iowa City. According to several interviewees, the University buys instead of leases and as commented by one, "has been pretty effective in sopping up any excess supply of [office] space. If you are doing a building with office space downtown, it would definitely be smart to have some [space available] for the University to lease." In 2006, for example, the University acquired a major portion of Old Capitol Town Center mall, a 288,000-square-foot retail center for $33 million. Approximately 200,000 square feet of former mall space is now utilized as office space for university-related operations. Existing downtown Iowa City office product includes that found in Plaza Towers, a development of Moen Group. Located on the pedestrian plaza adjacent to the Iowa City Public Library at 123 Linn st., this 14-story /233,41 O-square-foot mixed-use multifamily /Iodging/office/retail project was completed in late 2005/early 2006. According to the Moen Group, approximately 8,000 square feet of Plaza Towers office space is owned and occupied by an architectural firm. Another 5,000 square feet of office space is owned/occupied by a "holistic healing center." Moen's other downtown office buildings include the 15,000-square-foot Savings and Loan building at Clinton and College Streets, leased by several law firms, brokerage firms, a dentist, a corporate headquarters for a restaurant concern, an investment banker, and a psychiatrist. Moen also owns Brewery Square at Linn and Market Streets. This building is comprised of 15,000 square feet of office leased to a law firm, a group of psychologists, a mechanical engineering firm and a cosmetology school. The developer describes this project as "always occupied, with not much tenant turnover." Currently, there is one new building with office space planned for downtown Iowa City, Hieronymus Square. To be located on a site at the southeast corner of Clinton and Burlington Streets, the building, reportedly is planned to incorporate 66 hotel units, 80 condo and/or rental units, 12,000 square feet of retail, and 35,000 square feet of office space. POTENTIAL DOWNTOWN OFFICE DEVELOPMENT A review of selected office product during the May site visit combined with anecdotal data developed through interviews, suggests that the development of multi-tenant leaseable office space in downtown Iowa City should be approached with caution. By all accounts, tenant demand for small multi-tenant office space in this particular area is limited. Some of it sits vacant; some is converted to retail use; and the single major user (the University of Iowa) of office space downtown apparently prefers to buy space when needed. e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 129 That said, this "case for caution" is not so strong as to preclude the successful development of any kind of office space in downtown Iowa City. Based on the share of office market area employees (Le, in the Technology Corridor) working within downtown Iowa City, the downtown has the potential to capture 17.5% of the demand for office space throughout the Corridor. This capture rate translates to approximately 50,457 square feet of new office space demand per year, for a total of 353,199 square feet from 2004 through 2014. The share of potential office space that downtown Iowa City will ultimately support depends largely on the extent to which the nascent market for downtown speculative office space develops. As more office users lease space downtown, the speculative market may pick up, better enabling Iowa City to meet potential demand estimates. A passive approach to downtown office development, however, would likely result in the achievement of only a fraction of its estimated potential. Along with leaseable office space, there is likely a market for small, for-sale space in downtown Iowa City, according to interviewees. In addition to being a part of mixed- use projects, this type of for-sale product might also be successfully introduced to this market in the form of rows of two- or three-story "live/work" condominium units, incorporating ground-floor office (or "office-retail") space with second-and-third floor residential lofts. In the words of one interviewee, "this concept would be a big seller in a small-business-oriented marketplace like Iowa City." Some local business leaders have suggested that because large blocks or amounts of quality office space are not available, there are no 'large deals.' This is a 'chicken-egg' situation. Having large vacant blocks available is a strategy used in a larger market or major business center with a high velocity of leasing, with companies moving in and out on a regular basis. The Iowa City/Corridor market is generally not a market that has a large volume of leasing, though this does not preclude a large new business or expansion announcement at any given time. Based on a projection by the Iowa City Area Development Group, an increase of 1,500 new private sector non-retail jobs is expected in the next two years. Marketing efforts by economic development agencies are ongoing to attract new businesses to Iowa City. However, efforts to locate new office space uses in downtown are hampered by the lack of large office spaces (5,000 square feet or more) for lease in downtown Iowa City. e lI'Iar...ete... OFFICE MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 130 -,. CHAPTER 6 LODGING MARKET ANAL YSIS This analysis begins with an overview of lodging trends within the industry as a whole and key industry drivers and success factors. Available secondary information on area supply is summarized and followed by a competitive assessment for potential additional lodging space in downtown Iowa City. Finally, key conclusions and next steps are provided. While the lodging industry includes bed and breakfasts and RV parks as well as hotels and motels, this analysis focuses on the latter as they are the type of lodging most suitable for downtown. INDUSTRY OVERVIEW The hotel/motel sector of the lodging industry serves the needs of several different markets, including business travelers, leisure travelers and large groups. Exhibit L-1 outlines characteristics of each of these market segments: EXHIBIT L-1 LODGING MARKET SEGMENTS Business Represent a large portion of lodging demand Travelers Peak demand is Monday - Thursday nights Represent commercial, industrial, government sectors Purpose in area: conducting business, training, vendor/supplier sales Leisure Travelers Vacationers, visiting attractions, attending events, visiting friends/relatives, traveling to other destinations Seasonal in nature; peak on weekends Interested in recreational amenities at or near lodging properties Group Meeting Includes both business and leisure travelers Travelers Bus tours, athletic events Business group meetings, trade shows, training events Other Travelers Construction workers, utility crews, pass through travelers To meet the diverse needs of travelers, the lodging industry offers a variety of hotel/motel products as summarized in Exhibit L-2 on the following page. e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 132 EXHIBIT L-2 TYPES OF HOTELS/MOTELS Boutique Hotel An intimate, usually luxurious or quirky hotel environment that differentiates itself from large chain hotels. May be furnished in a themed and/or distinctive manor with between fewer rooms than national chains (usually less tho n 100). Often feature 24-hour guest services, on-site dining facilities and bars and lounges. Condo Hotel Building with units that are used as both condominiums and hotel rooms. Owners purchase condo units that are rented as hotel rooms when the owner is not living in them. Often have a restaurant and guest services that owners can use when living in their units. Extended stay Offer guestrooms or suites with kitchens that have sinks, refrigerators, microwaves and a stovetop. Usually have onsite self-serve laundry facilities and discounts for extended stays of at least 5 to 7 days. Popular with business travelers and families or other travelers who desire more space. Full Service Usually high-rise establishments that offer a full range of on-site food and beverage service, a cocktail lounge, entertainment and conference facilities, shops and recreation activities. They also provide a wide range of guest services on a 24-hour basis. Limited Service Have no on-site restaurant or beverage services and provide only limited guest services. Designed to be clean, comfortable and functional but without guest services typical of full service hotels. Luxury Hotel Feature well-integrated, high quality decor, full range of first-class amenities and customized guest services. High staff-to-guest ratio. May have several upscale restaurants, beachfront location and beautifully landscaped grounds. Resort Hotel Located in popular vacation spots such as beaches, lakes or on golf courses. Offer fine dining, exceptional services and amenities such as landscaped grounds, luxury indoor and outdoor pools, spas and transit to nearby attractions. Source: AAA Recent activity in hotel/motel lodging reveals the following trends: · Increased chain affiliation and consolidation: To take advantage of economies of scale, independent hotels/motels are being sold and converted to national chains and large chains are consolidating. · Increased third-party reservation: Online booking services such as Travelocity, Priceline and Hotels.com are becoming increasingly popular methods for booking reservations; One in five reservations are now through such third parties. · Popularity of alternative-style hotels: Where full-service hotels once dominated the lodging industry, limited service hotel/motels, extended stay hotels and boutique hotels are gaining in popularity. · Emphasis on refinancing, consolidation and renovation over new construction: As the number of available rooms outpaced demand, financing for new construction slowed, requiring stronger project characteristics such as excellent locations, national e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 133 branding and solid management plans. Construction is expected to pick up in 2007 to 2008. Two common measures used to gauge activity in lodging industry are the average daily occupancy rate and the average daily room rate. The first, occupancy, is defined as the average number of rooms sold divided by the number of available rooms. Average daily room rate is the average total room revenue for a given day divided by the number of rooms sold on that day. As of 2005, lodging profit margins were down nationwide to 18.4% compared to 20.1 % in 2000 according to industry analysts. Occupancy rates were up to 63% versus 59% in 2002, indicating that the industry is rebounding. Further indication of this rebound is the fact that the average daily room rate is up to $90, on the rise after a deep drop after September l11h, 2001. Critical success factors to the hotel and motel industry and facility operations include: · Consumer confidence and overall economic conditions. Business travel fluctuates directly with economic conditions and leisure travelers tend to postpone travel until the economy improves. · Visible, accessible and convenient location. Commercial locations should be accessible from major highways and/or convenient to business districts, colleges or convention centers. Resort locations should be near attractions and provide greater amenities and services. · Continuous renovation of furniture, fixtures and equipment and maintenance of building and property. · Friendly and convenient booking experience for guests. · Competitive prices. · Excellent guest services and clean rooms. · Continuous advertisement. · Understanding of competitors' prices, features and services and amenities offered. LOCAL SUPPLY Hotels and other lodging businesses are among the most complex of real estate investments. Understanding the underlying dynamics of supply and demand is critical to making an informed decision and thus affects the success of an investor, lender, operator, or hotel company. A detailed market analysis estimating lodging demand and supply by sub-sector, number of rooms, pricing, market penetration, target markets, required amenities and related factors is beyond the scope of this research endeavor. However, if at any given time a particular lodging project is proposed, its potential viability should be tested through an in-depth analysis. Exploring the opportunity for lodging in downtown Iowa City must necessarily take into account lodging product currently available in the Iowa City/Coralville area. This section summarizes hotels, motels and convention space available in the area and summarizes the local market as described by interviews with local hotel developers and managers and representatives of the Iowa City-Coralville Convention and Visitors Bureau. e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 134 To estimate the growth in the Iowa City/Coralville lodging industry, Exhibit L-3 charts lodging revenues by fiscal year since 1984. Note that revenues have been converted to 2007 dollars using the Consumer Price Index so increases or decreases are actual changes in lodging revenue. As shown, lodging revenue for the combined Iowa City/Coralville market has increased substantially over the last twenty years. From FY 1987 to FY 1997 lodging revenue increased by 13.7%; from FY 1997 to FY 2007 revenue increased by 50.2%. The majority of recent growth has been in Coralville - over the last ten years it saw an increase of 65.6% versus 21.5% in Iowa City. As of FY 2007,71.8% of revenue for the combined market was generated in Coralville and 28.2% in Iowa City. This revenue breakdown is roughly equivalent to the supply available in each city. As of October 2007, Coralville is home to 75.6% of hotel/motel rooms in the Iowa City/Coralville market while Iowa City is home to 24.4%. EXHIBIT L-3 LODGING REVENUE Iowa City and Coralville FY 1984 to FY 2007 $40,000 ...... '" .2 $35,000 (5 "C r-.. $30,000 0 0 ('oj r:: $25,000 '" "C r:: c $20,000 '" :l 0 :E $15,000 r:: :=. ~ :l $10,000 r:: ~ > ~ c.:: $5,000 $0 1984 1988 1992 1996 2000 2004 2008 Fiscal Year ~Iowa City Revenue -Coralville Revenue -'-Total Revenue Source: Iowa City-Coralville Convention and Visitors Bureau Exhibits L-4 and L-5 summarize the inventory of hotels, motels and meeting/convention space available in Iowa City, Coralville and North Liberty. As of October 2007, there were 25 hotel/motels with 2,400 rooms in the combined market area. Coralville provided the bulk of the rooms (1,739 rooms in 18 properties), Iowa City provided just under a quarter (589 rooms in 6 properties) and North Liberty had one property with 72 rooms. e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 135 EXHIBIT L-4 SUMMARY OF LODGING WITH CONVENTION/MEETING SPACE Iowa City and Coralville 2007 Total Room Meeting Space Dist. from Rate1 # of Total Amenities Facility & Location Rooms Capa- Down- Rooms Sq. Ft. cit/ town3 P R B FC I S L Downtown Iowa City hotelVetro Studio Suites & Conf. Center 56 $159 8 9,114 600 0.2mi. X X X X X 201 South Linn Street Iowa House Hotel 96 $74-$84 22 43,919 1,630 0.6 mi. X X X X X Madison & Jefferson Streets Sheraton Iowa City Hotel 234 $139 4 9,070 600 0.3mi. X X X X X X 210 South Dubuque Street Iowa City Quality Inn & Suites Highlander Conf. Ctr 95 $90 6 12,627 750 3.3mi. X X X X X X X 2525 North Dodge Street Travelodge 80 $59 2 1,380 75 2.7 mi. X X X 2216 North Dodge Street Coralville Americlnn & Suites 77 $79 609 50 6.1 mi. X X X X X 2597 Holiday Road Baymont Inn & Suites 103 $80 5 3,852 100 3.0mi. X X X X X X 200 6th Street Best Western Cantebury Inn 101 $79 850 70 3.1 mi. X X X X X X 704 1 st A venue Country Inn & Suites 76 $89-$99 1,600 100 6.2 mi. X X X X X X 2571 Heartland Place Heartland Inn 169 $85 3 1,385 80 2.4 mi. X X X X X 87 2nd Street Holiday Inn Express 80 $100 2 650 60 4.8mi. X X X X X X 970 25th Avenue Holiday Inn & Conference Center 97 $84-$99 10 7,060 400 3.5 mi. X X X X X 1220 1 st Avenue Marriott Coralville Hotel & Conf. Center 286 $149 14 58,347 4,800 4.0mi. X X X X X X X 300 East 9th Street P: Pool B: Continental Breakfast I: High-speed Internet Access R: Full-Service Restaurant FC: Fitness Center/Gym S: Suites Available L: Laundry Facility/Service 1. Weekday rate for standard double room with one occupant. 2. Maximum capacity of largest meeting room. 3. Road miles as measured from the intersection of Washington and Dubuque Streets. Source: Iowa City-Coralville Convention and Visitors Bureau; 2007 Corridor Business Journal Book of Lists e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 136 EXHIBIT L-5 SUMMARY OF LODGING WITHOUT CONVENTION/MEETING SPACE Iowa City and Coralville 2007 Total Room Dist. from Rooms Ratel Down- Amenities Facility & Location town2 P R B FC I S L Iowa City Alexis Park Inn & Suites 28 $60-$200 1.6mi. X X X X X 1165 South Riverside Drive Coralville Big Ten Inn 40 $30-$35 3.1 mi. X 707 1 st Avenue Comfort Inn 56 $70 3.8mi. X X X 209 West 9th Street Comfort Suites 81 $94 4.5 mi. X X X X X 2431 James Street Days Inn 51 $59 2.5 mi. X X X X 205 2nd Street Fairfield Inn by Marriott 63 $80 3.7 mi. X X X 214 9th Street Hampton Inn 115 $79-$109 3.5 mi. X X X X 1200 1 st Avenue Iowa City Super 8 Motel 86 $60 3.0mi. X X 611 1 st Avenue Iowa Lodge 81 $31 1.3mi. X Highway 6 West Motel 6 103 $36 3.8mi. X X 810 1st Avenue Suburban Extended Stay (Nov 2007) 74 $64-$94 4.0mi. X X X X 265 Holiday Road North Liberty Sleep Inn 72 $85 11.4 mi. X X X X X X 1-380 & Penn Avenue P: Pool R: Full-Service Restaurant B: Continental Breakfast FC: Fitness Center/Gym I: High-speed Internet Access S: Suites Available L: Laundry 1. Weekday rate for standard double room with one occupant. 2. Road miles as measured from the intersection of Washington and Dubuque Streets. Source: Iowa City-Coralville Convention and Visitors Bureau; 2007 Corridor Business Journal Book of Lists Properties that command the highest room rates are the hotelVetro and Sheraton ($159/night and $139/night, respectively), both located in downtown Iowa City, and the Marriott in Coralville ($149 /night). Nightly rates in other properties to range from $30 at the Big Ten Inn to $109 at the Hampton Inn, with most clustered in the $80 to $100 range. e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 137 In terms of meeting/convention space, the Marriott Hotel and Conference Center in Coralville provides the greatest amount of space with 14 rooms totaling 58,347 square feet. The largest meeting space can accommodate up to 4,800 conference-goers, a capacity unmatched by other properties in the area. In downtown Iowa City, the University of Iowa's Iowa House Hotel offers the largest conference space with 22 rooms and 43,919 square feet. The largest room has a maximum capacity of 1,630. While the Sheraton and hotelVetro include meeting facilities, they offer less space (about 9,000 square feet each) and lower capacities (600 person maximum). According to interviews with local hotel/motel developers and managers and Convention and Visitors Bureau (CVB) staff, occupancy rates in the Iowa City/Coralville market have increased an average of 4% to 5% per year over the last six years, reaching 66% by the end of 2006. Supply has expanded by 6.2% from 2006 to 2007 and two new properties - the Sleep Inn in North Liberty and Suburban Extended Stay in Coralville - have opened or will open this year. Major market drivers include healthcare visitors (estimated to comprise up to 35% of hotel visitors), University-related visitors and sporting event attendees, and festival-goers in town for annual events such as the Iowa Arts Festival and the Iowa City Jazz Fest. While the hotelVetro reports nightly room rates up to $400 during Hawkeye football season, room rates and occupancies in downtown hotels drop during off times. The CVB reports that, in terms of large conventions, the opening of Coralville's Marriott Hotel and Conference Center has boosted the market's conference and meeting business tremendously, drawing primarily state and regional conferences with a few national education or healthcare conferences. Iowa City's biggest competitor for conventions is Des Moines, which is popular because many companies are headquartered there. POTENTIAL DOWNTOWN LODGING DEVELOPMENT The potential demand for additional hotel rooms located in downtown Iowa City is unclear at this point in time. While expanding supply combined with increasing room rates, lodging revenue and occupancy rates is a positive indicator for the Iowa City /Coralville market area, downtown hotels still report significant room vacancies during non-peak times. Further, interviews did not reveal any gaps in the Iowa City/Coralville lodging market currently. According to the CVB, visitors to the Iowa City/Coralville area want to stay in downtown for the dining and entertainment options it offers and additional downtown rooms, perhaps at a limited service property, have the potential to draw visitors who would otherwise stay in Coralville or non-downtown Iowa City. Although downtown currently lacks the exhibit and breakout space needed to accommodate large conferences, the depth of this market in the Iowa City/Coralville area needs a detailed analysis. As the market's ability to attract regional or national conferences grows, the demand for large convention space in downtown is a distinct possibility, especially considering its attractiveness in terms of local restaurants, shops and entertainment. A representative of the Suburban Extended Stay Hotel opening in Coralville in November 2007 stated that while assessing the market for extended stay hotel rooms, they were not e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 138 aware of any credible feasibility studies for additional hotel rooms in the Iowa City /Coralville market. Clearly, prior to any future hotel/convention space development in downtown Iowa City, an in-depth market analysis estimating lodging demand and supply by sub-sector and recommending number of rooms, pricing, target markets, amenities and related factors should be conducted. e lI'Iar...ete... LODGING MARKET ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 139 (. ~t. .~-_........ " ~~' . , ijI. , >, iJ _J .. p CHAPTER 7 ;~~~~~~~ CLUSTER The release of "The Rise of the Creative Class" by Richard Florida in 2002 prompted many cities and states to consider how they could retain and encourage the creative class and young professionals. One of the first cities to capture this demographic was Austin, Texas. Austin still remains a poster child in its efforts. Portland, Oregon is also frequently cited regarding its successes in making the city friendly for the creative class and young professionals. Memphis is a recent example of a city that undertook a coordinated effort to enhance its profile among young and creative professionals. Each city brings its strengths and weaknesses to the desire to improve conditions for the creative class. Research indicates that recognizing the issue, capitalizing on the city's existing assets, and having a well designed media effort to inform interested persons of opportunities in the city are keys to reaching this demographic. Characteristics of the creative class, city trends for attraction and retention, keys to success and three case study examples are explored in the following discussion. CHARACTERISTICS OF THE CREATIVE CLASS The 'creative class' and young professionals as a group are considered college graduates between 24 and 35, sometime extending to 40 years of age. Men and women are equally represented and marital status is not considered a factor in their choices. Although some in the demographic have children, they are seldom mentioned in the research. There are roughly two professional classes: · Knowledge workers include financial planners, doctors, lawyers, scientists, and researchers, and · The creative core, including architects, educators, computer programmers, artists, designers, and media workers. Collectively, they account for approximately 12% of all U.S. jobs. The 2006 research report, "Attracting the Young, College Educated to Cities - CEO's for Cities National Meeting," noted the following about the behavior patterns of recent college graduates: · At least one of three will move to a new city they like and then look for work rather than find a job in the city first. This behavior is more typical of women than men and of people under age 25. · "College-educated young people like to live in places similar to their current living situation. ... and stay within the geographic region where they grew up." · Large metropolitan areas will attract those from an urban setting, and a small city will attract those from small cities. Young people who have recently graduated from colleges and universities located in "college towns" will be inclined to select a town with similar characteristics. An analysis of Portland, Oregon's 'Young and Restless' talent group (2004) noted the value of the 24-35 year old population as a major contributor to the economic growth of their community. Statistically they are the hardest working segment of the population. "These young adults not only start careers, but find mates, start families, and put down roots. Once rooted in place, the likelihood of their moving to another state or metropolitan area will decline precipitously." e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 141 CREATIVE CLASS PRIORITIES AND INTERESTS How well a city will be able to capture the creative audience can be understood by considering three critical elements important to attracting young professionals: jobs, livability and cultural capital. Jobs are the most significant factor in how well the city is staged to capture the target demographic. This includes the availability of jobs, the cross section of opportunities that exist in the community and the potential for professional growth. Livability of the city and a strong sense of place are critical characteristics. Significant features the demographic considers are: · Vitality of the downtown core city - walkability, availability of housing and entertainment options; · Alternative transportation modes, such as bike infrastructure, bus and light rail and the pedestrian friendliness of the city; · Availability of outdoor recreational opportunities in the region; · The cost of living in the area; · Quality of schools and universities; and · Diverse and tolerant population. Cultural Capital - Arts and culture features are integral to a community's success in attracting the 24 to 35 age group. This includes: · Availability of quality art and music venues; · Arts and music festivals; · Cultural diversity; and · Thriving food scene with farmers markets and diverse and quality restaurant choices. The Portland "The Young and The Restless" report identifies two other important factors: · Opportunities to participate: "This group wants to participate; the city needs to be open to their participation. This encourages them to stay in the city. Newcomers often feel their ideas are discounted." · Government that works and makes sense. Experiences of cities seeking to cultivate the young, creative class indicate that the primary information sources for this market to learn about potential places to relocate are: 1. Word of mouth from friends and family who live in the region is the most widely mentioned resource; 2. Weekend visits; 3. House/apartment searches; and 4. Local websites. TRENDS Cities everywhere recognize the importance of attracting and retaining the young 24 to 35 year old age group and working to build the creative sector that is often fueled by e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 142 young people. states, such as Wisconsin (Grow Wisconsin Creatively) and Montana, are also seeking to brand themselves as creative centers. The wave of interest and activity in part stimulated by Richard Florida's book and national acclaim has resulted in a plethora of activity: · Cities have seminars, conferences and strategies to improve the amenities and lifestyle opportunities this age group seeks. In many cases the amenities exist but the city needs to "get the word out" about them. · The focus tends to be more on "young professionals" than the "creative class" although the two groups overlap. · There are real estate websites, blogs and city ratings that focus on the best cities for both the creative class and young professionals. · Online maps are available with hot spots that show the best locations for young creatives with children. Custom maps can be created focused on criteria that range from crime statistics to housing prices and the presence of golf courses or marinas. Cities in the U.s. and Canada from Salisbury, North Carolina to Vancouver, BC have held summits and organized task forces to determine the role of young creative people. Each city seeks to develop an appropriate strategy that highlights the region's strengths. The results of these efforts, many of them quite recent, have not been documented. Fresno, California held a summit on the topic in 2004. Its focus was to "build on their assets to attract and retain great people," viewed as a successful approach for many cities. In Harrisburg, Pennsylvania city improvement efforts come from The Young Harrisburg Professionals (YHP), with a mission to improve physical and social qualities of Harrisburg. YHP has exploded with members, a multitude of committees and numerous noteworthy projects - planting trees for a beautification program, planning downtown social and networking events, creating a downtown business development plan and starting a program to encourage more owner-occupied housing in the city. The drive to attract the creative class is not limited to urban areas. The April 2007 edition of Amber Waves has a feature article titled, "The Creative Class: a Key to Rural Growth." The research found that the creative class was present in rural areas, particularly in high- amenity areas, and that its presence was associated with measures of creativity, such as patent awards and technology adoption, and with growth in jobs from 1990 to 2004. Many rural analysts have declared that the era of smokestack chasing is over; the creative class analysis suggests that chasing talent is a viable alternative for sparking local growth. But not all are convinced the creative class is the key to success for every city. A November 2006 article from the Manhattan Institute indicates some of the shine may be wearing off of the attraction to the young creatives. "Nor does it appear that these centers of hipness have done all that well in attracting and retaining young people, particularly since the collapse of the dot com bubble in 2000. Instead, people in their 20s and 30s, according to the census' American Community Survey, appear to be heading to the places that have been creating jobs, such as Orlando, Houston, Dallas and, to a surprising extent, Southern California, including e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 143 Orange, Riverside and San Bernardino counties. This is the dirty little secret about 'talent:' it revolves mostly around the economy." CASE STUDIES A. Austin, Texas Austin was one of the first cities to successfully combine and promote the inherent qualities that make the city noteworthy for the creative class and young professionals. It continues to be at the forefront of this awareness, to the extent that Austin has become a household term in the movement. Florida calls cities that are successful in their bid for the creative class "Austins." The City of Austin has played a significant role in attracting young professionals together with the chamber, arts groups and the professional group Young Execs of Austin. The projects they have undertaken are consistent with the types of amenities desired by young professionals. In addition they continue to improve their city. The development of the downtown has been significant. The new retail district is almost one hundred percent leased and the downtown also hosts numerous restaurants and entertainment venues. New condos and residential development address the desire of many people to "live central." Commuting continues to be an issue, but a new light rail linking north Austin to the eastside will go on line in 2008. Assets Austin boasts a larger percentage of its workers in creative jobs than Boston, New York, Portland and San Diego. More than sixteen percent of Austin's workers are part of Richard Florida's Super Creative Class, which includes architects, scientific researchers, computer programmers, musicians and writers. Austin is keenly aware that creativity equals economic growth, since pay for this category of workers is forty percent more than that of other occupations. In Austin, which is the self-proclaimed "Cities of Ideas," creative jobs are anticipated to grow to over a third of the work force. One of the keys to success in Austin has been the continued development of the technology industry: · Tracor (Texas Research Associates Corp.) was established in 1955. · IBM and Texas Instruments arrived in the mid-1960s. · Motorola built a plant for the manufacture of transistors and semiconductors in 1974. · Microelectronics and Computer Technology Corp., AMD, Dell and Vignette followed in the 80's and 90's. In addition to the tech industry, Austin is home to other Fortune 500 companies such as Whole Foods. A few prominent financial and publishing companies have also relocated from Phoenix and California. Austin is popular for the choices it provides residents in their personal and professional lives and notes the following key elements: e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 144 · An atmosphere of openness and tolerance; · A lively city life with lakes and green spaces; and · The University of Texas with a student body of over 50,000. Participating Groups The City of Austin and established groups within the city have taken an active role in making Austin the type of city that is attractive to the "creative class." Organizations abound to help young creatives find their place in the community: · The City of Austin, with participation by the Cultural Arts Division, the Greater Austin Chamber, and the City of Austin's Economic and Redevelopment Services Office. · Members of Young Execs of Austin, comprised of young professionals under 40 with a mission to help members increase their personal and professional network while giving back to the community, personally contribute time to organizations like Big Brothers/Big Sisters, Austin Heart House and Austin Children's Shelter. · Young Active Professionals organization with over 1,500 members. · Young Nonprofit Professionals Network, a networking and professional support for future nonprofit and community leadership. strategies Austin attributes its success with young creative professionals to a multifaceted approach to encourage the arts and entertainment, quality job growth and center city development. Current strategies are summarized below. · The Cultural Arts Division (CAD) of the Economic Growth and Redevelopment Services Office has the lead role in promoting the cultural opportunities in Austin on a local and national level. Arts and culture is viewed as an important growth industry and is central to the City's economic development strategy. The Cultural Arts Division is also responsible for the Art In Public Places Program, community based arts development, and programs to assist the development of music, film and creative industries in Austin, as well as initiatives designed to support and encourage the community's unique cultural identity and vitality. · The Greater Austin Chamber has developed www.AustinHumanCapital.com to recruit technology talent to Austin. The current talent initiative is focused on recruiting at the executive level. · The city is conducting a five-year plan to determine the cultural and creative assets that characterize Austin and how to continue to promote them. Successes The Economic Growth and Redevelopment Services Office undertook a variety of substantial projects to promote sustainable growth and enhance livability in Austin. Projects include: e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 145 · A new city hall; · 2nd street Retail District - an emerging, urban neighborhood with 225,000 square feet of retail, restaurants, entertainment venues, and living spaces; · Pfluger Bridge extension, a bike and pedestrian bridge providing better connection to downtown and areas north; · Downtown Great streets Program; and · A new light rail line opening in 2008. The development community has responded to opportunities to meet the housing demand of "young creatives" with the addition of several hundred housing units in recent years. As one news article reports: "Austin's educated, creative class of workers is looking for ownership opportunities beyond the suburban master-plan community options." The citizens of Austin continue to demonstrate their support for city improvements. In November 2006 voters approved over $560 million in bonds. Projects include: · street and sidewalk reconstruction and repair · A watershed protection plan and open space preservation · Park facility improvements, acquisition, renovations and development · Community and cultural facilities · Affordable housing programs and public safety facility projects · A new central library Austin is dedicated to music and film, evidenced by the moniker the "Live Music Capital of the World." Beverly Kerr at the Greater Austin Chamber said this is an authentic characterization of Austin, noting that: · Downtown offers numerous music venues; · The City Council has bands play Friday afternoons at City Hall; and · The City Council names a "Musician of the Week." Austin also reports one of the highest levels of volunteerism in the country, over 38 percent of citizens of Austin volunteered between 2004-2006. Young professionals are a cornerstone of volunteer projects. B. Portland, Oregon Portland is also known as a popular relocation destination for the creative class. Many attribute this to Portland's reputation as being at the forefront of progressive urban design. The qualities that embody Portland are generally those the creative class and young professionals are looking for in a city. By American standards Portland is a compact city; it has a large downtown with a variety of retail and cultural venues. However, the areas that tend to attract the young creative set are in the revitalized traditional neighborhoods. The food scene in Portland is also very developed. The temperate climate is ideal for the numerous farmers markets. Also unique to Portland and of interest to young professionals is the variety of transportation options it provides. The city has a well-used bus service, an extensive, expanding light rail system, street car lines and an aerial tram. In addition, Portland is one of the top three cities in the nation for biking. Bike trips account for over five percent of trips taken in the city. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 146 Assets The City of Portland has many of the assets desired by young professionals: · The design of the city fosters human activity. · Portland feels safe - demonstrated by its popularity with young, single, well- educated women. · The City of Portland has a well established downtown core. · Portland Metro is home to several companies known for their need for creative talent, such as Nike, Adidas, Intel and Columbia Sportswear. · Portland has an abundance of transportation alternatives. · Outdoor recreation opportunities abound, from the sea to the mountains to the rivers. · The citizens and the city government are environmentally conscious. Portland is at the forefront of the so-called new urbanism. The city's number of college grads aged 25 to 34 swelled by 50% from 1990 to 2000. Despite layoffs by Intel and others, its economy has averaged 5.5% growth for four years, thanks largely to the growing population and services like design. Once-seedy areas like the Pearl District boast dozens of art galleries and some of Portland's fanciest restaurants. Old warehouses now house companies like Ziba Design, whose clients include Apple Computer and a national ad agency Wieden + Kennedy. Ziba founder Sohrab Vossoughi says a stimulating city center is key to his ability to hire 20 designers a year. "The values of this generation are in line with the DNA of this city," he says. One recruit is Vermont native Meral Middleton, 26. She likes that she can snowboard at Mt. Hood and hang out at chic restaurants. Her boyfriend, an Adidas designer, is one of 10,000 locals who bike to work. "Design is as much a lifestyle as it is a job," she says. "The time away from the desk may be when you find that epiphany." Aside from strong quality of life attributes, Portland has documented its assets in creative services industry sectors as follows: · 1,500 firms and a total of 14,000 employees; · Revenues of $2 billion and a payroll of $976.8 billion; · Average creative services wage $66,663/yr. compared to regional average wage of $40,639; · Art directors, producers and directors, fashion designers, and multimedia artists and animators lead the high-wage, arts-related occupations in the state. Employment in these high-wage creative occupations is expected to add around 855 jobs by 2014; · Greater percent of freelancers or self-employed professionals than other industry clusters; and · More than half of the state's graphic design firms are concentrated in the Portland metro area. Participating Groups · In 2004 the Portland Development Commission (PDq, the City's economic development agency, conducted a study on the "The Young and the Restless: How Portland Competes for Talent," to document trends and identify preliminary strategies. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 147 · The Young Professionals of Portland is an informal group that meets monthly for drinks at popular "hot spots." · Numerous groups in the city focus around interests such as bicycles, sustainable living and neighborhoods. strategies Portland emphasizes growing the creative services industry and in some ways assumes the young professionals will follow. "The Young and The Restless" study commissioned by the PDC in 2004 and Anne Mangen, creative cluster coordinator at PDC, provides some very concrete strategies for attracting young professionals. 1. Focus on a sector, do not try to do it all. 2. Be sure groups and industry representatives know the city is paying attention: · Have a clear contact point for groups and industry reps. · Connect with professional associations. · Collaborate with conferences. · Recognize that each sub group or sector has different needs and some segments connect well to each other. 3. Promote the unique characteristics of the city: · Keep the image of the city up-to-date. · Put city values on display. · Promote young adult life style. · Provide quick reference pamphlets to regional attractions with photos of people enjoying unique places. · Use communications that resonate and reflect the style and ideals of the 25 to 35 age group. 4. stay connected with young residents: · Use internships to connect with young adults. · Survey young adults regularly. · Celebrate their contributions. · Communicate development plans with this segment of the population. 5. Develop ways to target high schoolers, college graduates and others who have left the region: · Maintain a system to inform them of current developments in the city. · Disseminate information through the networks that are used by the expatriate young. 6. Don't lose sight of issues that affect all sectors of the population such as job creation, congestion, schools and infrastructure. Successes Much of Portland's attraction to younger people and its perceived success as a creative center stem from a long history of environmentalism, central city focus, public involvement and alternative lifestyles. Examples of how these values are conveyed follow: e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 148 · The younger age demographic is a prime mover in the greening of Portland. An article in The Christian Science Monitor in April 2006 called Portland the "new capital of the ecohouse movement." The article also states the young population of Portland believes they can live their environmental values in this city, evidenced by the high levels of recycling, and transit and bicycle use. However many old timers in Portland raised their children with a view toward ecology and sustainability. Portland set the stage over twenty years ago as the first city to successfully apply federal traffic funding to mass transit. As a result, residents on Portland's east side have access to light rail service in place of a freeway that would have disrupted established neighborhoods. · Portland has a strong bike lobby. The non-profit Bicycle Transportation Alliance, has over 4,000 members and strong support from city government and business interests. The city invests in infrastructure for bikes and is in the process of developing a master plan that will make it one of the top cities for biking in the U.S. · The Coalition for a Livable Future (CLF) is an organization that garners support from over 90 businesses and organizations and hundreds of individuals. Their motto is "By connecting issues, people and organizations, CLF empowers communities to take action together to shape the big decisions affecting the Portland region's future." · The City of Portland relies heavily on civic participation; this is particularly evident in the neighborhood coalitions. With almost 100 associations throughout the city, residents new and old, young and old are encouraged to participate in the decisions that affect their neighborhoods and the city as a whole. · Like Austin, Portland has a very high rate of citizen involvement - about 36% of citizens participate in some form of volunteer community activity, ranking it sixth in the nation. C. Memphis, Tennessee Memphis also joined the drive to entice and retain young professionals. A 2005 report of the Memphis Talent Project, "Technology, Talent, and Tolerance: Attracting the Best and Brightest to Memphis," presents a comprehensive blueprint for the city to update its image and capitalize on its strengths. Memphis is a model of how a coordinated effort by different organizations can create a vibrant city image. A quick look on-line of Memphis attractions indicates that the City of Memphis has implemented numerous recommendations made by the study and is seeing positive results. They have also worked to ensure the message they project to newcomers is consistent with the experience the community offers. Assets Memphis has many assets that it promotes in its campaign to attract and retain the younger generation and creative professionals, including: · A downtown Renaissance; · A visible and engaged creative community; · Cultural diversity and authenticity; and · The potential for multifaceted labor markets. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 149 Memphis also works at tuning in to employer needs. A recent article in the Memphis Business Journal notes that: "Growing that pool of educated young workers, mostly between the ages of 24-35, is key to Memphis' future as a host to a growing flock of biotechnology and technology companies. The feedback that we got from the companies was that losing talent wasn't about salary, it was about getting a connection to the city." -Michael Paulk Participating Groups Spearheading the effort to encourage young creatives to relocate and stay in Memphis is an organization called MPACT Memphis. This non-profit group with over 1,200 members is dedicated to attracting young professionals to Memphis and ensuring they stay. MPACT's core value statement is that the city should encourage active engagement, connectivity, creativity, diversity, inclusivity and opportunity for professionals under 40. MPACT's mission is accomplished by: · Utilizing intern networks; · Sponsoring luncheons; · Encouraging political engagement; and · Offering training and opportunities to participate in the financial, political and community service aspects of the city. "In a city whose people have a track record of not always seeing and promoting the good things found in Memphis, having a mix of native Memphians and transplants gives MPACT a good perspective on how to better promote the city." -Michael Paulk, Memphis Business journal Other groups that are actively involved in the effort to engage and encourage young professions include: · City of Memphis; · Memphis Tomorrow; · The Memphis Regional Chamber; · The Memphis Tourism Foundation with a focus on three areas: (1) Improving the city's self- image; (2) Workforce development; and (3) Research and advocacy; and · Young Active Professionals - has a social emphasis, but works to create strong bonds within this demographic. strategies Memphis' efforts to attract young professionals focus on the new economy and image enhancement. "The Technology, Talent, and Tolerance" report analyzed the "old" versus the "new" Memphis economy as a prelude to strategy development. The "new" emphasis is on partnerships and attracting a talent base versus the "old" model where economic development is about business recruitment. MPACT and the Tourism Foundation have set an ambitious agenda with a special priority on improving the city's self-image as integral to attracting talent elaborated on below. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 150 In 2003, MPACT and Memphis Tomorrow together with Richard Florida hosted a gathering called the "Memphis Manifesto" focused on building a community of creative ideas. This innovative summit brought together 100 individuals from across the county (including several from Iowa City) known for innovative, creative thinking. The outcome was a Manifesto or call to action to take home to their communities a series of ten guiding principles. They range from: Cultivate/Reward Creativity and Embrace Diversity to Nurture the Creatives and Remove Barriers to Creativity. In addition, other principles and strategies guiding Memphis' work include the following: · Memphis organized its image development work in 2005 and is keenly aware that making changes requires a commitment from the whole community, the chamber, the city, higher education and public private partnerships. · Creation of a cohesive vision of the city involving local government, civic and business organizations is highly valued. · Downtown development and growth in neighborhoods that have the potential for vibrant community gathering places are emphasized. · Efforts to improve perceptions of the city (from the inside out) and create pictures of "peak experiences" are ongoing in four categories: * Arts and culture * Active outdoor recreation * Culinary excellence and diversity * Intellectual life · Memphis is actively updating its image and brand seeking to be smart and compelling and attractive to "young knowledge workers." In the new image, special attention is being given to images of young, ethnically, diverse people engaging in "peak experiences." This theme applies to both print and web images. Successes Though still in the early stages of promoting itself as a vibrant active community for young professionals, Memphis has implemented many of the suggestions presented in the "Technology, Talent, and Tolerance" report. Local leaders noted that many people had the perception Memphis was a place with "nothing going on." After they experience the city their perceptions begin change. The old perceptions came from websites focused on historical perceptions of the city, the slow South, Elvis and river boats. There were very few photos of average people engaged in contemporary lifestyles or of a vibrant city. New marketing information on Memphis begins "Memphis shakes you. Memphis wakes you. Memphis moves you." · The image make over effort involves several organizations, including MPACT. In the summer of 2007, MPACT Memphis launched a website where bloggers were recruited to write about events that would be of interest to young professionals. One MPACT leader noted, "We've decided that rather than try to tell our citizens what we think they should feel about Memphis, we want them to tell each other and hopefully create a buzz about the cool, funky aspect of our nature." See Smartcitymemphis.blogspot.com. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 151 · Another image development initiative is the Memphis Tourism Foundation program that encourages citizens of Memphis to submit short videos completing a sentence that begins, "This is my Memphis because ..." · MPACT Memphis, the chamber and the Memphis Biotechnology Foundation organized a recruitment fair to provide students graduating from Owen Graduate School of Management at Vanderbilt University the opportunity to talk with local companies. One organizer commented that "just getting them here to see what the city has to offer is a step in the right direction." · Local television personality Christopher Reyes from "Live from Memphis" and "My Memphis TV," conducted peer to peer interviews of dozens of young professionals about what they like most about the city. The DVD will be used with Memphis recruiters. CRITICAL SUCCESS FACTORS The following factors summarize the most important findings related to the efforts and successes of numerous cities, including those highlighted in the case studies, seeking to attract young professionals and the creative class: · City government needs to takes an active role in encouraging young professionals to remain and relocate; · Additional interests such as the Chamber of Commerce, or appropriate non-profits complement the city's efforts; · The city needs an established job pool to draw on and active, visible support of creative sector industries; · The city must have a unique and authentic quality, a true sense of place; · The city must have a vibrant downtown core and be committed to investing in and improving amenities in the downtown; · The city and its citizens actively support cultural and arts institutions and events; · The people who live in the city love the city and provide positive feedback about the city and its direction; and · The city has a comprehensive and consistent message about what the city is/its identity and is committed to marketing the message on a regional and national level. IOWA CITY'S COMPETITIVE POSITION Cities successful in attracting and retaining young professionals and creative sector jobs offer a variety of desirable amenities and characteristics to draw this target market. Anecdotal information gathered from the Creative Services Focus Group (May 2007) and during follow-up interviews revealed that Iowa City has many assets appealing to young professionals and others in the creative sector. Several quotations from local leaders summarize this perspective: "We are a town of very big ideas." "The University draws artists and creative writers from around the world." "University gives us youth, vitality and intellectual capital." e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 152 "Once people get to know us, they want to stay. It's easy to feel at home here." In addition, Iowa City already has a significant population base of post-college young professionals, with 19.1 % of the local market comprised of 25-34 year olds. This compares with 12.3% in this age range for the state of Iowa overall. (See Retail Target Markets.) The key attractors for young professionals/creative types as identified from the case study and literature research are listed in Exhibit C-1 with a general assessment of how Iowa City stacks up. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 153 Key for Ratina S = Strength W= Weakness N = Neutral Exhibit c-1 Iowa City's Ability To Capture the Creative Class Strengths and Weaknesses Critical Success Factors .. Jobs Employment growth Diverse base of creative sector opportunities Potential for professional growth Livability Vitality of downtown core Center city housing options Quality schools and universities Availability of outdoor recreation opportunities Cost of living Diverse and tolerant population Value on sustainable, green living. EX: alternative transportation modes What Iowa City Offers S Iowa City/Johnson County have above average employment and population growth. Corridor employment projections estimate 3,538 new jobs/ year through 2014. In Johnson County, an estimated 8,000 persons work for 365 enterprises in key creative services sector jobs tied to Information, Science, R&D, Educational Services and Arts and Entertainment. (County Business Patterns, 2005). This is a higher proportion (14.6% of all jobs) than for the U.S. as a whole (12%). For its size, Iowa City is perceived to offer greater than average opportunity, especially tied to university and medical community. Fifth in U.S. among Best Small Places for Business and Careers. As a small city, a wide range of choices will be limited compared to a metro area. S S S The overall health of downtown is strong and reflects the community's value of the central city. Choices are limited; a definite market void. W S University of Iowa and I.C. schools overall are recognized as first rate. Quality parks; sailing and biking clubs, among others; river activities-all somewhat ordinary. Hawkeye sports offers spectator recreation opportunities. Various indices rate Iowa City living as very affordable. Population is ethnically diverse by small town Midwest standards. Several University-related social justice groups exist. Viewed by many as the most liberal place in Iowa. University attracts and promotes some green endeavors; no critical mass in this category. N S S N e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 154 Cultural Capital Availability of quality art and music venues Art and music festivals Cultural diversity Thriving food scene Opportunities to Participate Variety of groups Social capital Other Positive Community Outlook & Salesmanship Government that works SUGGESTED ACTIONS s From the Center for New Music and multiple live music venues to UI's International Writing Program and Hancher Auditorium performances, Iowa City has an abundance of offerings. The Cultural Corridor Alliance also projects the area's strength with arts and culture. Arts Festival, Jazz Festival and Summer of the Arts programs are a few of the many year-round events related to arts and music. Local market area is relatively diverse with over 16% of population, nonwhite, compared to 7.6% statewide. UI hosted a Cultural Diversity Festival (07). Farmer's markets, quality bar/restaurant choices, CSAs abound, Edible Iowa River Valley promotes local connections. s s s s Several unique groups exist: BASE' Play with a Purpose' young people's group; Creative Economy Group, Jamestown Housing Group Universities have a somewhat transient population by nature. Deep and lasting relations may be harder to create. N s Very strong sense of pride and positivism; strong Chamber and visitor organization. N The City is actively pursuing plans to strengthen the downtown core, yet many business owners feel the City could be more supportive. Iowa City offers a very positive enticing environment for young people and creative sector professionals. If there are any concerns identified through this brief assessment of the city's potential to attract and grow these markets it is that more effort needs to be made to publicize the unique vibrant liberal community that Iowa City is. It also needs to clarify what the priority goal is: to grow creative industry sectors (from film and arts to computer software and design) or to promote the community to young professionals, knowing they will bring some level of creative enterprise with them. The vision will help drive the strategy. Preliminary suggestions for next steps are provided below: e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 155 1. Host a Creative Enterprise Cluster Event with the goal being to identify and communicate industry issues and opportunities and recommend local government/other actions to support the creative enterprise cluster and link clusters to resources. 2. Develop a marketing plan specifically to promote all the unique aspects of Iowa City living, particularly those of interest to young adults. In creating a marketing plan, Iowa City should consider the following questions: (1) What are the key messages? (2) Can the effort build upon existing community marketing initiatives? (3) How can people outside Iowa learn about Iowa City opportunities and what a special, creative environment it offers? (4) How can the work and contributions of young professionals be better promoted (entrepreneurship activities, civic involvement, etc.)? (5) How can these values be better conveyed in all marketing efforts and particularly on the web? 3. Work more closely with the University of Iowa to help discern the interests of both undergraduate and graduate students as far as career development and to learn how the local business community can better support and retain the enormous university talent base nurtured during college years in Iowa City. e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 156 Appendix 7-A: Creative Cluster Analysis References Telephone interviews: Leticia at the Memphis Regional Chamber Beverly Kerr, Research, Austin Chamber of Commerce Kristie Perry, Membership and Michelle Poyourow, Volunteers, Bicycle Transportation Alliance (BTA), Portland, Oregon Web sites used for report: Capturing Young creatives in Your City Attracting the Young, College Educated to Cities - CEO's for Cities National Meeting May 11, 2006 How can Wisconsin reap the benefits of its Creative Economy? C:\Documents and Settings\HP _Administrator\Local Settings\Temporary Internet Files\ Content. I E5\ GPE7W 5M R\growwisconsincreatively .cfm .htm Attracting and Retaining Young Professionals - Results from Focus Groups Final Report - by Fountainworks Harrisburg Young Professionals http://www .hyp .org/news/ 1998_9 .asp http://www.hyp.org/committees/index.asp Map with hot spots that show the best locations for young creatives with children http://www.geocommons.com/workspace/show /1463 "The Creative Class: a Key to Rural Growth". April 2007, Amber Waves http://www.ers.usda.gov/AmberWaves/ApriI07/Features/Creative.htm Joel Kotkin, 2006. The Creative Class Canard http://www.joelkotkin.com/Urba n_A ffa irs/ CO A H %20The%20Crea tive%20Class%20Ca na rd .htm Fresno, California summit, 2004 http://www .greatva lIey .org/ creativefresno/ docs/summit_doc .PDF Portland "The Young and the Restless Report" PDC http://www.pdc.us/pdf /bus_serv /pubs/young_and_restless.pdf Smart City Memphis - Big Dividends for Big Cities - investing in alternative travel modes helps Portland e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 157 http://smartcitymemphis.blogspot.com/2007 /07 /this-week-on-smart-city-big- dividends.html Young Professionals of Portland http://www.youngprofessionalsofportland.com/yp/index.asp Young Professional Drive Eco-house movement in Portland Christian Science Monitor, April 25, 2006 http://www.csmonitor.com/2005/0426/p03s01-ussc.html Bicycle Transportation Alliance, Portland http://www.bta4bikes.org/ Coalition for a Sustainable Future http://www.c1future.org/ Portland Neighborhood Associations http://www.portlandonline.com/oni/search/ Citizen Involvement Principles in Portland http://www.portlandonline.com/oni/index.cfm ? a=ceeef &c=cjbci Portland volunteer rates http://www.oregonlive.com/portla nd/ oregon ia n/index.ssf? /base/portland_news/ 118444 8311168070.xml&coll=7 Leadership Portland, Portland Alliance http://www.portlandalliance.com/ Memphis Technology, Talent, and Tolerance: Attracting the Best and Brightest to Memphis" A report by the Memphis Talent Magnet Project, 2005 Memphis Manifesto, Building a City of Ideas About MPACT Memphis http://www.mpactmemphis.org/about.html "Young Professionals Helping City recruit and retain talent", Memphis Business Journal September 6, 02 http://www.bizjournals.com/memphis/stories/2002/09/09/focus6.html Young Active Professionals, Memphis http://www.yapclub.com/memphis/ Smart City Memphis http://smartcitymemphis.blogspot.com/2007/07/week-in-memphis-branding-city-from .html http://smartcitymemphis.blogspot.com/2007 /07 /Iearning-about-cities-through.html Influx of Designers into Portland http://www.businessweek.com/magazine/content/06_34/b3998442.htm e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 158 Austin The Austin City Council today took the necessary budgetary steps to move forward this year on $85.5 million in voter-approved projects. http://www.ci.austin.tx.us/news/2007/bond_allocation.htm Florida on "How Austin attracts the creative class" http://www.matr.net/article-3963.html Austin: The Cultural Arts Division (CAD) of the Economic Growth and Redevelopment Services http://www.ci.austin.tx.us/redevelopment/cad.htm Austin Chamber Corporate Partners http://www.austin-chamber.org/DoBusiness/AboutOpportunityAustin/Partners.html Significant list on Austin Advantage http://www.austin-chamber.org/DoBusiness/TheAustinAdvantage/index.htm I Austin Chamber http://www.austin-chamber.org/DoBusiness/index.html Austin's Economic Growth and Redevelopment Service Office, the Small Business Development Program is http://www.ci.austin.tx.us/sbdp/programobj.htm Austin Young Execs http://www.youngexecs.net/ Young Active Professional http://www.yapclub.com/austin/ Young Nonprofit Professionals Network http://www.ynpn.org/ Austin/ Volunteer rates of cities http://www .nationa Iservice .gov /pdf /VIA_ C ITI ES/VIA_cities_fullreport .pdf Economic Growth and Redevelopment Services Office http://www.ci.austin.tx.us/redevelopment / e lI'Iar...ete... CREATIVE CLUSTER ANALYSIS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 159 ;; ~ -' ~-'~~~ ~--.. - ~":;~,;,.~~~~. CHAPTER 8 FROM MARKET ANALYSIS TO MARKET RESULTS RETAIL STRATEGY Based on the findings of the target market analysis, the retail market analysis, extensive public outreach, the market assessment and Marketek's experience in working with over a hundred downtown business districts, recommendations for downtown Iowa City's retail development strategy are provided related to: · Guiding principles · Influencing the business mix · Business targets Successful implementation of downtown Iowa City's business development program requires strong coordination, consistent communication and commitment to a vision for a more cohesive downtown. The strategy outlined below assumes that a collaborative team will work together spearheading the business development process, including the City of Iowa City, Downtown Association, Chamber of Commerce, and key downtown leaders. The Organizing for Implementation section details the recommended approach. A. Guiding Principles At the heart of downtown Iowa City's long term success is its ability to offer residents, visitors and businesses a unique and welcoming environment unlike any they can find elsewhere. Downtown Iowa City historically has a reputation as a vibrant, successful district. With increased competition, a changing business mix, and a growing marketplace, downtown leaders recognize the need to focus retail development and proactively strengthen the retail base downtown. The following guiding principles should be considered throughout the redevelopment process. These principles can be adapted to reflect the vision, values and philosophy of the Iowa City Business Development leadership team. These or similar guidelines should be adopted and promoted as a framework for downtown Iowa City's success. 1. Strive to be Different. The marketing process begins with a clear statement of downtown Iowa City's identity and competitive position in the marketplace. Downtown Iowa City must view itself as a 'product' and market itself to compete with other nearby shopping centers and business districts. Developing a common message and identity will provide guidance for downtown's marketing, urban design elements, signage, advertising, marketing materials, website, etc. Downtown Iowa City's unique ambiance, historic character, depth of entertainment venues and active pedestrian mall already set it apart from all other places. In general, downtown Iowa City should promote itself as the true heart of the community-a unique, exciting and vibrant destination for shoppers and businesses. With the significant retail expansion occurring throughout the market area, it is very important that downtown promote its market advantages and position to business prospects and customers alike. Downtown Iowa City cannot be 'all things to all people' as many would like. It has evolved from being the principal shopping center for the Iowa City/Coralville area and has and will continue to become a truly one-of- a-kind regional destination. This uniqueness is reflected in the draft market position statement below: e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 161 Downtown Iowa City is Iowa's premier arts and entertainment district with creative, locally-owned shops, distinctive restaurants, and hometown service. 2. Looks Count. Although downtown Iowa City has a fa<;ade improvement program and the community has general design guidelines, it is important to be reminded that physical and economic development go hand-in-hand. Continuing to improve and maintain downtown's appearance is critically important to make a favorable first impression on both business/developer prospects and shoppers. Many shoppers responding to the customer survey noted the need for continued fa<;ade improvements and ongoing clean up. 3. Cluster and Focus. Downtown Iowa City's success in capturing new and expanding retail development and its long term viability as a shopping and entertainment district will be strongly influenced by a number of factors, including the ability to locate retail and related businesses in the downtown core and to limit sprawl on the city edges. While retail demand is growing with the population base and visitor market, it is not so abundant that expansion can continue to occur equally throughout the market area. It will need to be guided. A related success factor for downtown development is the creation of a critical mass of complementary businesses that benefit from each other's sales, customers and markets. The primary vehicle for developing unified groups of stores and businesses is clustering - creating mutual advantages in terms of pedestrian flow and shared markets between businesses. Successful clustering is dependent on having the appropriate mix of businesses that generate market synergies and an uninterrupted grouping of retail businesses that draw customers to and through the entire business district. Clustering businesses which share customers or that have complementary goods will strengthen downtown's market position. Professional service/office uses should be located on secondary streets out of the retail core and in upper stories. Beauty and Personal Care Services can be scattered throughout the district. Restaurants can be located as entertainment anchors throughout the district with sensitivity to avoiding conflicts with neighboring businesses that may be seeking to serve a different market segment. At present, restaurants and bars completely dominate the downtown business mix with 55 and 13 establishments, respectively. Existing downtown clusters include: · Restaurants and Bars, College Street Pedestrian Mall · Jewelry and Arts, Washington Street other merchandise categories such as Apparel (14 stores) are scattered throughout the downtown with small sub-clusters such as Austin Burke and Ewers on Clinton and Catherine's and Dulcinea on Dubuque. Downtown Iowa City has several blocks that are underutilized with disconnected business uses. One example is the Dubuque Street pedestrian mall between College and Washington Streets where there is a hodge podge of uses. This block in particular was noted by shoppers as being 'uncomfortable.' The block feels darker and less open than others possibly due to mature landscaping, large planters and limited active uses. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 162 Another block that is disjointed in terms of business clustering and flow is Dubuque street between Washington and Iowa streets. Prairie Lights Bookstore is a significant anchor for the block and all of downtown, yet the advantage is lost due to the very limited number of browsable stores in the immediate vicinity. Restaurants and bars dominate. The Linn street blocks between the library and Washington street also have strong potential for business clustering with small, 'right size' retail spaces on both sides of the street. Several quality businesses exist there but are generally destinations unto themselves. These include the Art Mission shop, Fired Up pottery making, a liquor store and music store, among others. Examples of clusters are suggested below and supported by the specific business targets identified in Part B of this section. Home Furnishings and Accessories Downtown has a few quality retailers in the home furnishings category including Meta, Prairie Table, Futon Shop and Gilda Imports. Unfortunately, they are not in close proximity to each other. Many niches are unfilled in the home furnishings category (from additional furniture and home accessories to interior design) and should be sought to continue to build downtown as a community destination in this merchandise group. A perfect opportunity to build on Meta as an anchor is to fill the adjacent vacancy with a complementary business. It should be noted that the Northside/Market Street District has a small home furnishings cluster as well with three such businesses in close proximity: Artifacts, Decorum and Roominations. Apparel! Accessories/Boutiques With short, walkable blocks downtown, three adjoining blocks with existing strong apparel tenants should be the focal point for filling out the apparel niches downtown. These are the Clinton Street, Washington Street and Dubuque Street blocks that connect on the north side of Washington. Family/Community-Serving Cluster With the new public library as a community magnet, some of the nearby retail space on Linn Street could be refocused to family uses. The pottery shop is such an existing use. Other examples include specialty toy/gift shop, pet supplies/store, and a top quality children's consignment clothing store. Northside District Although not a 'business cluster,' it is recommended that the small two-block Northside area promote itself as a unique neighborhood district. For marketing economies, it should be marketed jointly with downtown Iowa City. Words such as cozy, relaxed, comfortable, alternative and quiet all help describe this sub-district. One sample marketing theme follows: Discover the Northside Neighborhood of casual specialty shops and quality local eateries. 4. Walkable Core Area. Downtown Iowa City must continue to work at creating a safe, pleasant and convenient atmosphere for pedestrians. This begins with good signage to the downtown core, easy and accessible parking and clear designation e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 163 of the core shopping area. Pedestrian activity should be encouraged and enhanced throughout the core area. This guideline is directly linked to marketing and clustering and speaks to the need to call out in all possible ways what the retail focus is in downtown Iowa City through good design, signage, landscaping/flowers and clean-up endeavors. Shoppers and businesses expressed concern with the following related issues: parking needs/costs, timely snow removal, extensive loitering in some blocks, sidewalk cleanliness and the need to continually freshen downtown's appearance. It is recommended that the City of Iowa City with appropriate partners respond to these issues. 5. Know What You Have to Offer. A necessary strategy for recruiting business prospects and developers is to be able to provide an inventory of available real estate, or better yet, be in the position to bring key properties to the table. The City of Iowa maintains a map of existing ground floor uses, but no organization is responsible for maintaining a downtown property inventory. Now it is time to take the next step of identifying specific business types and owners for vacant (and soon to be vacant) properties. Identifying and packaging infill sites will be equally important to downtown. Examples of potential infill properties are the U.S. Bank parking lot at Washington and Linn Streets and the Wells Fargo/I.C. Reproduction site on the pedestrian mall. This activity will be further discussed in the Marketing Plan section. 6. Aggressively Promote Yourself. Just as Coral Ridge Mall, Old Capitol Town Center Mall and other established shopping centers are actively marketing themselves to attract new business, downtown Iowa City needs aggressive marketing to quality retailers, service businesses and office tenants promoting downtown as a prime choice for business location. Working with local and regional media and community and business organizations, highlight the positive developments occurring throughout downtown Iowa City. Regular press releases to the media promoting the positive activities and initiatives will contribute to downtown Iowa City's image development in the marketplace. Maintaining strong communication with area residents and businesses will also be important to convincing your local marketplace that downtown Iowa City is a positive and unique place to do business. 7. Housing Link. A critical strategy in support of retail vitality in downtown Iowa City is to encourage the addition of housing units. Residential development can serve as an important catalyst for retail expansion. The residential market analysis identifies significant market opportunity for downtown Iowa City and specific target markets. The City of Iowa City together with the downtown business development team should encourage and promote downtown housing in every possible project. Housing is an important component of the development mix and will contribute to demand for additional shops, services, convenience goods, restaurants and home- oriented products. B. Influencing the Business Mix Diversifying and strengthening the mix of on-street businesses in downtown Iowa City is a challenge with a very low vacancy rate, relatively high rents and no new retail space coming on line in the core downtown area. A combination of strategies is needed including reducing the concentration of bars, managing/capitalizing on real estate e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 164 opportunities and targeting 'best bets' for new business. Downtown's ability to capture business opportunities is integrally linked to the available supply of competitive, leasable space. This section and the marketing plan that follows begin address these issues. 1. Bar and Alcohol Concerns. Marketek contacted several college communities regarding how they addressed concerns with student drinking and an abundance of bar establishments in the downtown. Among these were: Bloomington, IL, Athens, GA, Newark, NJ, LaCrosse, WI, Chico, CA, Bellingham, W A and Corvallis, OR. Aspects of the campus and community environment that influence student drinking were noted as an over concentration of alcohol outlets in neighborhoods adjacent to the campus, aggressive marketing of alcohol to the student population, and lax or spotty enforcement of laws governing sale and consumption of alcohol and driving under the influence. In addition, advertising messages originating off campus may feed a perception that high-risk drinking is a normal part of college life. Communities also noted that frequently there may be too few social and recreational opportunities that do not depend on alcohol availability for their appeal. Among the strategies utilized by these communities to curtail alcohol abuse and indirectly work to create a healthy business mix are: 1. Aggressively enforce public drinking laws; 2. Limit the number of liquor licenses; 3. Campus-Community Alcohol Coalition; 4. Work hard to multiply the number of recreation venues; 5. Regulate the number of liquor licenses; zoning ordinance amended "no net gain for bars" limits licenses; restaurants, food sales are excluded from the law; 6. Urban renewal for redevelopment of nuisance properties; and 7. Downtown district marketing to focus identity on arts & culture. More than one community created a coalition of community stakeholders to implement various proposals. The common thinking was that one solution does not address the problem. Downtown Bloomington Association Director Peggy Flynn summarized the complexity of the issues: "It's not just working with the bar owners, the police, business owners or residents. We need a holistic solution that includes everyone working together." At various times in recent years, the City of Iowa City has researched and assessed options for influencing the number of bars and the sale of alcohol downtown. Considerations have ranged from increased enforcement of bar capacity to zoning regulation of bars. One strategy being pursued is limiting access to bars for those under age 21, a proposal on the November 2007 ballot. This proposal may impact liquor sales and long term, decrease the number of bars downtown, but this is not the intended purpose. Regardless of the initiative outcome, one thing is clear. Commitment to a comprehensive strategy of multiple tactics is critical to freeing up bar space to make way for additional retail. 2. Business Mix. Each of Iowa City/Coralville's shopping centers will capture business and consumer expenditures from a variety of target markets, though grocery-anchored centers will draw more heavily from area residents. Downtown Iowa City will need to work hard and smart to encourage quality businesses to locate there over other established or newly built shopping centers. As earlier noted, e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 165 downtown Iowa City has a large number of unique, quality independently-owned businesses with a few chain stores mixed in, mainly at the Old Capitol Town Center Mall. Business development efforts should emphasize unique locally-owned businesses but also carefully target selected chain stores that offer some cache and/or the ability to draw a broad middle to middle-upper income market. student Spending Based on surveys of student spending patterns and reports by American Demographics, student consumers most frequently buy the following types of merchandise and services: · Shoppers goods: books, CDs, computers, cameras, phones, cards/gifts, apparel, athletics goods/shoes, other sporting goods including bicycles. · Convenience goods: groceries, drugstore items including cosmetics, snacks and video rentals. · Food and beverages: deli/sandwiches, bagels, ice-cream/yogurt, health foods, juice, coffee, pizza, fast foods, ethnic foods, bar/pub food and drink. · Personal services: laundry, bicycle repair, hair styling/cuts, exercise/gym services. For perspective and to help create a vision for what the downtown business mix could include, Marketek researched the downtown businesses of several college towns focusing on apparel and specialty goods. The communities included: Madison, WI, Champaign, IL, Austin, TX, Bloomington, IN and Boulder, CO. A snapshot of businesses is presented in Exhibit MR-1. Of note is the fact that the overwhelming majority of businesses are non-chain, locally-owned boutiques and specialty shops. However, chains are definitely in the mix. For example, Boulder has a few chains targeting teen and college populations: Urban Outfitters, American Apparel, Buffalo Exchange and Billabong. Austin's downtown chains include Urban Outfitters, REI, Chico's, Diesel, and Anthropologie. Also of note is the concentration of apparel stores in these downtowns: Austin-70, Boulder-67, and Madison-37. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 166 Downtown Retail Categories Austin, Bloomington, Boulder, Champaign, Madison, TX IN CO IL WI Apparel 70 10 67 9 37 Books 10 2 14 2 9 Gifts2 37 4 15 2 9 Entertainment3 61 12 28 1 21 Electronics 10 3 4 5 9 Specialtl 57 6 36 18 21 ITotal 245 37 164 37 106 Downtown Anthropologie American Apparel Birkenstock Chains Chico's Billabong EB Games Diesel Buffalo Exchange Ragstock REI Chico's Reebok Sunglass Hut Urban Outfitters Urban Outfitters Urban Outfitters 1. Apparel includes clothing, shoes, accessory and jewelry stores. 2. Gifts includes cards/gift shops and toy and sporting good stores. 3. Entertainment includes museums, theaters, art galleries, etc. 4. Specialty goods include home goods, funishings and other miscellaneous retailers. Souce: Marketek, Inc. Visitor Spending Leisure and business visitors are noted for spending discretionary income during travel. The most desired types of goods by the visitor market include: · Restaurant, bar and eating choices representing a variety of cuisine and prices · Unique, one of a kind, locally created arts and crafts and gallery items · Apparel and accessories · Gifts · Convenience goods-grocery and drugstore · Recreational/sporting goods and services · Home accessories As noted earlier, restaurants and bars dominate downtown Iowa City's existing business base with gaps and niches to be filled in apparel/accessories, home furnishings/decor, grocery, services and other selected categories. The following list of business and merchandise opportunities (Exhibit MR-2) are suggested for downtown based upon the retail market analysis, shopper and business owner research, visitor market insights, lifestyle analysis and the types of businesses that are succeeding in other college towns. The large supply and quality choices offered by existing downtown Iowa City restaurants appear to be more than adequate. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 167 However, several specific food niches were identified as desirable by local consumers and are included on the list. Some merchandise categories are already represented by downtown businesses, but are presented here as it is believed that additional options can be supported. EXHIBIT MR-2 TARGET BUSINESS/MERCHANDISE OPPORTUNITIES Downtown Iowa City Merchandise Apparel (all kinds) Jewelry Shoes Bed/bath/linen Sporting goods and outdoor gear Home accessories/decor Books/music/CDs Drapery/rugs Cards/paper/gifts Consignment furniture Florist/garden accessories Gallery/gifts (more) Unique children's toys and gifts Bicycle sales and repair Children's boutique Audio/electronics Antiq ues/reproductions Camera Lam psi shades/lighting Container-type store Com puters/ accessories Frames/art Furniture Restaurants/Food Health food/juice bar Grocery Bakery (full service) Wine shop & tasting room Chocolate shop Entertainment Movie theater Personal carel Dayspa DVD rental Services Photography Yoga/pilates Health club/recreation Vision care Interior design Computer repair/service Dry cleaning T ailoring/ alterations C. Business Targets Expanding Retailers Using the proprietary Retail Tenant Directory database of over 5,400 retail companies (national and regional chains), Marketek conducted a search of retailers expanding in Iowa. The search criteria included: (1) Planned 2007 expansion in Iowa; (2) Desirable gross leasable space of 500 to 10,000 square feet; (3) Selected retail categories suitable for downtown, approximately 55; and (4) Downtown/lifestyle center location preferred. The search excluded restaurants and food service. The results identified 235 retailers expanding in Iowa. The complete list appears in Appendix 8-A. Marketek conducted an initial screening of the list to identify those appearing to be the best fit for Iowa City's demographics, market gaps and business clusters. Exhibit MR-3 lists selected top targets. As a supplemental task, Marketek can assist in providing company location preferences and contact information. The list can be used as the beginning of a target 'suspect' list as well as to help identify existing independent retailers locally, in the region or beyond who would fill a similar niche and may consider a downtown Iowa City location. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 168 e lI'Iar...ete... EXHIBIT MR-3 SELECTED TOP CHAIN PROSPECTS Name American Eagle Apple, Inc Bagel Boys Bakers Footwear Group Brown's Shoe Fit Cache CD Tradepost Chicos Coldwater Creek Famous Footwear Foot Locker Fossil Gap Hollywood Entertainment Hot Topic J. Crew KaBloom Flowers LA Weight Loss Landmark Luggage LUSH Handmade Cosmetics MAC Cosmetics Origins Papyrus Franchise Radio Shack Rent-a-Center S&K Famous Brands The Children's Place Under Armour Retail Category Apparel Computer/electronics Eatery Shoes Shoes Apparel Specialty/music retail Apparel Apparel Shoes Shoes W atches/ accessories Apparel DVD rental Apparel/accessories ('pop') Apparel Florist Personal service Specialty retail Cosmetics/skin care Cosmetics/skin care Bath & body products Paper goods/specialty Electronics Home furnishings Menswear Apparel Athletic wear Urban Outfitters Apparel/home accessories Z Gallerie Homefurnishings Zumiez Skateboard/snowboard gear Source: Plain Vanilla Shell; Marketek, Inc. MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 169 ORGANIZING FOR DOWNTOWN BUSINESS DEVELOPMENT A. Background Successful implementation of the downtown market study is dependent upon a commitment to downtown as a priority economic development area, an organized, proactive local business development team and management by a qualified staff position that is at least one-half time. Existing organizations can and should be part of a steering committee to guide and lead the business development process, but do not appear to have the ability to manage this function at the present time. None has the staffing or organizational capacity. Nor are organizational purpose and activities directly aligned with downtown business development. The current situation for key groups is delineated below. The Iowa City Area Chamber of Commerce works to foster a better business environment and must necessarily serve the entire Iowa City business community. The Chamber is a convener for its membership and a link to resources, working to build regional partnerships and encourage entrepreneurship. City of Iowa City Economic Development staff focuses citywide on commercial, industrial and workforce development as well as urban renewal activities. While the city strongly advocates for downtown development, the public sector is not the appropriate place for business recruitment/outreach. The city can be helpful through its financial assistance programs, in getting projects off the ground and in creating effective public policies and efficient regulatory systems to allow speedy and appropriate development downtown. The Economic Development staff is constrained in brokering deals. They have limited time to devote to commercial business development. The Downtown Association of Iowa City (DTA) is a nonprofit association focusing its resources to promote downtown. The organization provides leadership and undertakes marketing initiatives and special events to promote downtown Iowa City. At present, DTA is in an organizational/membership rebuilding mode and lacks a sustainable funding base. The Iowa City Area Development Group (leAD Group), a 501 c6 serves the business development needs of primary sector companies in the greater Iowa City area. As Iowa City's lead economic development organization, ICAD Group works to connect industry with federal, state and local resources for business retention, expansion and attraction efforts. Downtown development is integrally linked to projecting a positive quality of life and the ICAD Group's business development skills and experience can be very helpful for downtown's economic success. B. Recommendation and Budget Form a public-private partnership of key downtown stakeholders and leaders with an exclusive focus on improving the downtown Iowa City business mix. A void forming a new nonprofit, but rather try to organize under or affiliate with an existing well respected nonprofit which will serve as the fiscal and administrative agent. Ideally, the group will have a complementary mission. However, it is important that the Partnership remain autonomous. The Community Foundation of Johnson County may be an appropriate e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 170 entity as one of its functions is to help establish and manage targeted giving funds for various community interests. Partnership investors might include the above organizations, as well as bankers, downtown developers, the University of Iowa and key business/property owners. Investors should be asked for $5,000/year for two years to provide stability to business development efforts. Target a minimum of 20 individuals or organizations for a minimum budget of $100,000. All investors with a $5,000 investment or greater should have a seat at the decision-making table. During the two year start-up time frame, a sustainable funding program will need to be organized. These efforts may well be linked to a downtown self-supporting municipal improvement district (SSMID). Below is a draft budget outline for the full time function, which is recommended in order to recruit a top quality, experienced candidate for the job. One budget assumption is that office space will be donated by a partner or investor. EXHIBIT MR-4 BUSINESS DEVELOPMENT BUDGET SAMPLE Downtown Iowa City Personnel Full time manager Benefits $60,000 $1 8,000 Office Rent-in-kind Telephone Equipment $0 $600 $1,000 Other Printing Workshops/Travel Website PR/Advertising Miscellaneous $1 ,400 $2,500 $3,000 $7,000 $1,500 TOTAL $95,000 C. Job Description and Partnership Steering Committee Tasks What follows is a draft job description for the proposed Downtown Business Development Manager, Partnership/Steering Committee member responsibilities and an overview of key focus areas for the Partnership. Detailed strategies and action steps appear in the Marketing Plan section of this report chapter. The Partnership will provide a centralized point of contact for downtown market information, space inventory and retail prospecting and coordinate with the City and other entities to address policy and priority projects affecting downtown Iowa City. The three key elements of the downtown economic/business development process are e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 171 exhibited below: Property Development, New Business Development and Business Expansion. Together with these functions, the Partnership will need to focus on developing a funding strategy for long term program support. Following the job description and committee responsibilities is a synopsis of goals and activities for each of these three activities. Downtown Iowa City Business Development Manager - Draft Position Description Desirable experience in one or more of the followinq: · Real estate, sales and marketing, small business development/finance, community and economic development. · Minimum of three years experience in working/consulting with independent businesses. Desirable characteristics: · Manager must understand issues confronting downtown business people, property owners, public agencies and community organizations. · Manager must be entrepreneurial, energetic, imaginative, well organized, and driven in an independent situation. Skills required: · Ability to work with start-up, existing and retiring business owners. · Ability to work with very diverse personalities and levels of business sophistication. · Ability to market, sell and negotiate downtown opportunities. · Ability to diagnose business problems and recommend practical solutions. · Ability to manage multiple projects at any given time. · Ability to work with volunteers. · Ability to identify and package assistance programs and financial incentives. · Ability to be a team player and support the work of all Partnership organizations. · Ability to use Microsoft Word, Microsoft Excel and Microsoft Power Point. · Excellent public speaking and writing skills. General Duties: · Responsible for the development, conduct, execution and documentation of business development activities including business retention, expansion and recruitment and property development. · Develop and follow through downtown business development campaigns targeting specific business opportunities for downtown. · Maintain and enhance the relationship with the entire downtown Iowa City commercial community. Specific Duties: · Become familiar with all persons and groups directly and indirectly involved in the downtown commercial district. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 172 · Build strong and productive working relationships with downtown business and property owners. · Draft a work plan to establish monthly and long term goals coordinating with the Partnership and any working committees. · Conduct an ongoing public awareness/education program about the opportunities in downtown Iowa City and the commercial community. · Network, attend functions and make presentations to groups relevant to the downtown Iowa City business community, including the Chamber, City Council, Rotary and the University. · Work with individual downtown tenants and/or property owners on positioning their properties to redevelop or sell. This may include assisting with physical improvement projects through personal consultation or by obtaining and supervising professional design assistance and providing guidance on financing the improvements. · Maintain a current inventory of ready and available downtown space, condition, lease rate and terms, special features, listing agent and telephone number and other pertinent factors. · Utilizing the downtown market study, target and identify business prospects through a wide variety of direct marketing tactics: direct mail, visitations, contact with referral sources and open communication with local businesses and local leaders. · Develop and update a professional recruitment packet, website and other materials to promote downtown business opportunities and properties. · Identify and coordinate structural or regulatory changes to remove barriers to business attraction (e.g., modifying zoning ordinances and parking guidelines). · Develop and maintain systems to track and report the progress of the business development program. · Organize regular Partnership meetings and maintain strong communication with partners. Key Benchmarks/Indicators of Success: · Number of qualified prospects contacted. · Number of businesses recruited or assisted/retained downtown. · Properties readied for redevelopment as a result of Partnership efforts. · Amount of dollars reinvested in downtown as a result of Partnership efforts. · Jobs generated in downtown as a result of Partnership efforts. Business Development Partnership Steering Committee Responsibilities General responsibilities of the committee involve collecting necessary information, gaining complete knowledge of the downtown market study, helping generate leads, contacting and assisting prospects and communicating key issues and needs for technical assistance. Partners should commit to: · Actively develop and promote the vision for downtown Iowa City's economic vitality; · Identify and stay focused on the downtown priorities related to Business Development over the next 6 to 18 months; · Establish and monitor roles and responsibilities for staff person and the organization as a whole; · Put a link to downtown Iowa City URL on their websites; e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 173 · Network and promote downtown business opportunities to fill target business niches; · Help create and monitor a work plan for priority activities; and · Identify and pursue sustainable funding strategies. The Partnership will also need to develop operating guidelines for meetings, management structure, and overall expectations regarding individual participation. It is recommended that an executive committee be organized to work directly with staff and keep the group on task. Partnership Focus Areas The Partnership may develop sub-groups or committees for each of the focus areas below. Property Development The purpose of a Property Development Program is to stimulate interest and action toward property improvements and to enhance the appearance and condition of downtown properties to attract quality tenants. Business Retention and Expansion Helping existing businesses to remain or become healthy and to apply the results of the market analysis will contribute to a positive business environment and enhance business recruitment efforts. Business Attraction The purpose of Downtown Iowa City's targeted business attraction plan is: 1) to create "top of the mind" awareness; 2) to inform the target audience about opportunities in downtown Iowa City; and 3) to generate leads. Marketinq and Communications A comprehensive and well coordinated marketing program to promote downtown opportunities, development projects and results achieved will support the success of all other business/property development endeavors. D. Conclusion and Next Steps Completion of the downtown market study is the culmination of a nearly two year discussion among downtown Iowa City civic and business leaders. Momentum and energy are strong for the targeted downtown development process key to successful implementation. The crucial next step is organizing to proactively respond to identified market opportunities. Experiences of dozens of successful downtowns demonstrate that economic revitalization and 'restructuring' is a long term process that must be well focused, with strong leadership and excellent management. The issues and opportunities facing downtown Iowa City are far too complex to be volunteer managed or added to the workload of an existing organization. For this reason, a separate group or partnership should be formed with a staff function exclusively focused on business and property development. It is crucial that the Partnership build support from the greater downtown Iowa City community and show measurable progress toward established goals in order to develop e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 174 the confidence of funders and the community and to capture sustainable funding. A sample timeline for organizing for implementation follows: November 2007 Downtown market study presented. Implementation recommendations presented accepted by City and key downtown stakeholders. and December 2007 Economic Development Commission members contact prospective investors to form partnership. January 2008 Downtown business development partnership organized, operating guidelines developed, staff position publicized. February 2008 strategic priorities identified; commitment. March 2008 staff hired, work plan developed, committees formed. BUSINESS DEVELOPMENT AND MARKETING PLAN To successfully promote and capitalize on the market opportunities identified in the Market Analysis, an aggressive and well-coordinated marketing program should be carried out that includes three key initiatives exhibited below: Property Development, Business Retention/Expansion and Business Attraction. Recommended 'next steps' are detailed in this report section. In addition, a Marketing and Communications action plan details important marketing tactics for overall success. The underlying purpose is to convince existing and prospective business owners, property owners and investors that downtown Iowa City is the best business/investment opportunity and to demonstrate tangible results. Property Development -------- Business Retention & Expansion Business Attraction e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 175 A. Property Development Goal - The purpose of a Property Development Program is to stimulate interest and action toward property improvements and to enhance the appearance and condition of downtown properties to attract quality tenants. Audience - Business prospects (renters), property owners, real estate agents, lenders and the general public. Implementation Activities Identify Target Commercial Properties Ready for Business Occupants 1. Make an inventory of all vacant, underutilized or uncared for downtown properties. 2. Identify established bar tenant properties that may be making a change in the near future. 3. Organize a property owner contact team to meet one-on-one with property owners to discuss the overall revitalization process and the desire to increase commercial activity. The contact team should also assess the property owner's interest in and ability to make property improvements and to lease or sell the property. 4. Building on the information gained through property owner interviews, use the Property Assessment Worksheet (see Appendix 8-B) to clearly evaluate the condition, property owner interests and near term potential for key downtown buildings. Assess the ability of the owner to sell and/or lease the space. 5. Based on the property inventory, rank the sites/buildings according to their potential for development or locational importance, categorizing them as short term or long term potential initiatives. 6. Explore using a community-initiated development process (local investor groups, nonprofit development corporations or other means) to creatively move key properties out of dormancy and into functional space. 7. For properties/buildings that are available and in good condition for showing, work with the property owner and/or a local realtor to market these to business prospects. Marketek identified seven vacancies in September 2007, though at least one was preparing for a new tenant. Put together a one page marketing fact sheet or profile with key features, price information, a photograph, contact person and target businesses for the location. A property profile would include the following information: a. total and useable square footage b. lease/sale terms c. amount of store frontage and parking d. photographs, aerials, building footprints and/or floor plans e. target business types for the site/property e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 176 Develop Incentives and Assistance Programs to Reduce the Economic Risk to the Property Owner & Encourage Downtown Redevelopment 1. Identify all existing property and business development incentives offered through city programs and/or other resources. 2. Contact by telephone and/or arrange field trips to other comparable communities with a track record of downtown revitalization to identify other successful incentives. Contact Iowa Downtown Resource Center (Thom Guzman) for best examples. 3. Identify workable incentives for downtown Iowa City, funding and other forms of assistance that can encourage property redevelopment and business development. 4. Package a Property Redevelopment Toolkit, combining existing urban renewal benefits and any other incentives identified through the steps above. 5. Develop a downloadable file with information on what the incentives are and how to apply them to various property development projects, with examples, if available. 6. Organize a property improvement recognition program. Any property owner caught in the act of reinvesting and making positive property improvements should be recognized for his efforts and contribution to downtown improvement. B. Business Retention and Expansion Goal - The purpose of downtown Iowa City's business retention initiative is: 1) to encourage existing businesses to capitalize on market opportunities; and 2) to support and enhance established businesses contributing to downtown vitality. Audience - Existing businesses in the core downtown and Northside neighborhood areas; Iowa City business and economic development organizations and service providers. Implementation Activities Assist Existing Businesses through Education, Technical Assistance and Recognition 1. Promote the findings of the Retail Market Analysis through business networking, distributing the executive summary, presentations and other outlets. 2. Working with the University of Iowa's Pappajohn Entrepreneurial Center, identify tactics and approaches for assisting existing businesses to expand and diversify their merchandise mix based upon the opportunities identified. This is a key to capturing opportunities identified in the analysis. 3. Respond to issues identified in the Business Owner Survey. Conduct a series of workshops and/or provide one-on-one technical assistance to address the top needs identified in the Business Owner Survey, including: target customer marketing, joint promotions and property enhancements. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 177 4. Institute a Downtown Business Recognition Program for downtown business' exceptional service, business improvement, community services, new initiatives or other positive endeavors. Build upon and work in conjunction with the Chamber of Commerce's efforts to help local businesses celebrate milestones and successes. Provide Relocation Assistance and Start-up Encouragement 1. With consideration for the business clustering concepts shared in the retail strategy and business expansion plans, work with any existing businesses seeking to relocate within the downtown. Publicize this assistance. 2. Investigate incentives and technical assistance to encourage 'home grown' businesses and entrepreneurs to locate in downtown. 3. Explore the potential for a retail incubator space to provide retail entrepreneurs a jump-start in a small, below-market cost space. C. Business Attraction Goal - The purpose of downtown Iowa City's targeted business attraction plan is: 1) to create "top of the mind" awareness; 2) to inform the target audience about opportunities in downtown Iowa City; and 3) to generate leads. Audience - Business prospects, businesses being targeted, leads generated through other marketing activities, local and regional realtors/brokers, media and business associations. Implementation Activities Develop Target Business Recruitment Campaign(s) 1. Establish 3-6 target business priorities for attraction and/or expansion. 2. Formulate a written marketing and prospecting game plan for priority business targets. Sample steps include: · 'Suspect' and prospect list · Direct mail campaign to businesses and developers · Advertising campaign 3. Develop a call program to leads generated from ad/direct mail campaigns. 4. Prepare sales program to court prospects. 5. Cultivate referral networks: brokers, commercial/residential developers, other economic development agencies, leasing offices, etc. Attend events of and/or join key retail/related business professional associations such as the International Council of Shopping Centers (ICSC), Commercial Association of Realtors, trade association groups, etc. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 178 6. Develop niche marketing campaigns for target businesses to create awareness of the opportunities and engage them in considering downtown Iowa City as a location for their business. See sample that follows. EXHIBIT MR-5 TARGET MARKETS / NICHE BUSINESSES Downtown Iowa City Target Markets Rationale Campaigns Specialty Retail · Existing demand from all · Build awareness · Small apparel markets · Marketing and outreach to shops · Future demand from locally-owned shops in 15D-mile · Home population growth and radius Iowa City (opportunity to accessories/ art downtown residential expand) · Home furnishing development · Marketing to businesses with · Children's toys/gifts · Future demand generated current locations in model cities · Wineshop/winebar from increased promotions of · Use Retail Tenant downtown opportunities and Directory/brokers to identify entertainment businesses seeking new locations · Contact area manufacturers of specialty goods for retail outlet · Website, marketing packet · Consistent messaging- electronic newsletter · Feature articles Developers / Brokers · Best opportunity for near-term · Engage them to invest in · Local new investment properties/o pportu n ities · Regional · Have the resources and · Development opportunity · National expertise to create meetings-residential, retail, office commercial, residential, and · Keep them advised of changes mixed-use downtown and assistance for downtown · Have established networks improvements · Newsletter · FAM Tour (if needed) · Continue to promote programs, opportunities, business locations, new developments and events Create Marketing Collateral Marketing collateral must do two things: (1) show the vision of what downtown Iowa City is striving to be; and (2) provide compelling information that shows a market exists for the targeted businesses. 1. Use a folder or document file to package collateral materials (listed below). Quality map, 8 x 11. The inside should depict the vision and future of the downtown, highlight major anchors (City Hall, library, etc), residential areas, and unique businesses. The reverse, outside panels should be a continuous image, aerial photograph highlighting specific sites and buildings (this allows the map to be used in bound proposals or packets). e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 179 "Info-sales" collateral sheets should be created and stored digitally enabling quick updates and the ability to print them on the brand templates and include in marketing packet. Much of the content will be found in the Retail Market Analysis. Info sales sheets should contain: · Market demographics and customer profile · Market trade area map · Daytime population · Visitor market · Property profiles (site and building information including site map, aerials, building photographs, etc) · Program assistance (fa<;ade improvement program, financing, incentives) · Resource guide (Entrepreneurial Center, Chamber of Commerce and other organizations providing technical assistance) · Development flow chart (outlining steps required and/or recommended to develop downtown properties or open a business) and list of permits needed with links to forms and applications already online (unless this process is very transparent) · Press releases 2. Prepare one or more simple marketing collateral pieces (e.g. sales brochure, direct mail post card campaign, etc). Actively Manage the Business Development Process 1. Create/obtain a database system (Contact Management System-CMS) to maintain records of targets - developers, businesses, property owners and key contacts. The key in marketing downtown Iowa City is in exposing the opportunities to a wide audience, which means consistent and frequent messaging to a large database of contacts. Using a CMS system simplifies the marketing process by automating the messaging. For example, letters and/or electronic messages can be sent to any or all leads in the database, directly from the CMS system, and record the activity. The system will save staff time in implementing the different niche campaigns. 2. To effectively market and promote downtown Iowa City to different target niches, the Contact Management System should contain contact information on the following: · Local, regional and select national media · Key business journals and professional associations · Local and regional developers and realtors (retail, commercial, and residential) · Local/metro target retailers · Local businesses (including those not currently located downtown) · Downtown property owners 3. Subscribe to or use the limited free version of Retail Tenant Directory. Keep the database current by continually updating information and purchasing annual database updates. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 180 4. Details for implementing each initiative should be recapped in a matrix, which has been designed as a tool to assist staff in organizing, budgeting, scheduling, and reporting on all the details involved in successfully implementing the action items. A sample table appears below. EXHIBIT MR-6 SAMPLE IMPLEMENTATION AND REPORTING GUIDE Lead Target Target Action Budget Person start Completion status Date Date Property Development $ Inventory vacancies Contact property owners Property profiles Match property to business target Redevelopment site plans Business Attraction $ Develop collateral Conduct direct mail Prospect sales plans Press and media outreach Actively Promote the Results 1. As an adjunct tool to the reporting guide, prepare on a semi-annual basis, a simple one page benchmarks and outcomes snapshot. The following categories may be included: · Sales and Marketing: * Direct mail pieces sent * Number of calls made and response * Number of hot, warm, cool leads · Public Relations: * Press releases sent * Articles published · Business Attraction: * Number of businesses recruited * Number of jobs created * Dollar amount of private investment * Dollar amount of public investment 2. Establish a schedule for internal reporting to members of the Partnership and external reporting to the community. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 181 D. Marketing and Communication Goal - Business development marketing and communication initiatives should be carefully linked to those of the Downtown Association, the Chamber of Commerce and the City of Iowa City to avoid any duplication and ensure complementary presentation of the downtown message, identify and vision. Implementation Activities Create a Consistent Brand Identity for Downtown It is not clear if downtown is routinely identified as the Old Capitol Cultural District. Nor is it clear if the tag line Where the Unique is the Usual (which appears on the DTA website) is used in other places. If there is a unified logo and color scheme, they are not evident. This recommendation may best be implemented by the Downtown Association with its focus on promotions. The task should not sidetrack or impede the business development activities of the Partnership. It should be kept as simple and short a process as possible. Ideas about next steps are shared below. 1. Create or agree upon an existing "brand" or identity that reflects the image and vision desired of the downtown, Le., arts and entertainment, live/work/play, Old Capitol Cultural District, etc. Use any established color scheme of the city and DTA within the design if possible. Seek to obtain any necessary graphic services on a pro bono basis. 2. Once the design concept is completed, establish a brand style guideline to control the proper use of colors, fonts, look, etc. of the downtown brand. The brand should be made available to those partners wanting to leverage their marketing which would continue and expand the branding of the downtown. Anyone wishing to market downtown Iowa City using the brand should follow the guidelines. 3. Once the design concept and style guideline is approved, create blank brand templates and electronic templates for use in marketing campaigns. For example, marketing packet, newsletters, press releases, post cards, and brochures (two sizes). Expand Website Presence 1. Create a unique URL for marketing purposes, Le., www.DowntownlowaCity.com. Users should be able to get directly to the information from this URL and also from within the city's, the DTA's and chamber's websites in as few clicks as possible. 2. Put all downtown market and development information at this location. Post an electronic version of a "Market Opportunities" brochure. Review quality downtown websites for ideas. Information that should be in this area of the site would include: · Market Potential - market area demographics (as provided in market study), downtown activities and visitor draws, streetscape and other improvement plans · Map of Downtown e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 182 · Property Profiles - name and description of sites, location maps showing access to site, site/parcel maps, property description, overview of availability, key features and advantages of the sites · Assistance - financing, incentives, and other assistance programs available · Stories and testimonials - successful businesses, downtown developments, project plans · Contact - name, phone, fax, and email of the primary contact person 3. Revise and update content at least quarterly. 4. Create links with these pages to other resource sites and offer reciprocal links. 5. Move the "Sites Available for Development" to the City's homepage. Currently users access this area via the following path: Home Page> Business> Buildings and Sites> Locality>Buildings>Sites. A direct link on the home page to "Development Opportunities" is much more effective and user-friendly. Create a Press Kit and a Schedule of Media Releases 1. Include press release template, FAQs about downtown and Iowa City, area demographics, photographs, website URL announcement, and media contacts. Have hard copies available for face-to-face meetings and PDF format for electronic transfer. 2. Develop story ideas for monthly media releases on downtown Iowa City's business development (and other) progress and success. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 183 Appendix 8-A: Complete List of Expanding Retailers EXPANDING RETAILERS FROM RETAIL TENANT DIRECTORY Abbey Carpet Company, Inc. Aldo Group Inc. ALLTEL Corporation American Eagle Outfitters, Inc. Anne Fontaine Apple, Inc. Ashley Furniture Industries Inc. Auntie Anne's, Inc. BAB, Inc. Bakers Footwear Group, Inc. Barja Inc. Bath & Body Works beauty brands, Inc. Benetton Services Corp. Borders Group, Inc. Brodkey Bros. Inc. Brown's Shoe Fit Co., Inc. Build-A-Bear Workshop Caboodle Licensing Corp. Card$mart Retail Corporation CD Tradepost Charming Shoppes, Inc. Christopher & Banks Corp. Claire's Stores Coach Inc. Color Me Mine Enterprises, Inc. Consolidated Vision Group, Inc. Creative Kidstuff Inc. Daylight Corporation Del Sol Dick Blick Holdings Inc. Dooney & Bourke Draper's & Damon's Inc. Eddie Bauer Holdings, Inc. Emerging Vision, Inc. Abercrombie & Fitch Co. After Hours Formalwear Allegra Network, LLC Amailcenter Franchise Corporation American Greetings Corporation AnnTaylor Stores Corporation Archiver's, Inc. Association of Logos Bookstores, Inc. B.E. Mid's Inc. Bagel Boys, Incorporated Bang & Olufsen America, Inc. Barnes & Noble, Inc. BCBG Max Azria Group, Inc. Bed Bath & Beyond Inc. Big Dog Holdings Inc. Brighton Collectibles Inc. Brookstone, Inc. Brueggers Enterprises, Inc. Business Partner Franchise Corp. Cache, Inc. Carver Enterprise Group Charlotte Russe Holding, Inc. Chico's FAS, Inc. Cingular Wireless Club Libby Lu, LLC Coldwater Creek Inc. ColorTyme, Inc. Crabtree & Evelyn, Ltd. Cuts Fitness For Men Deb Shops, Inc. Deseret Book Co. Do It Best Corp. Dots, Inc. Dunkin' Brands, Inc. Edible Arrangements LLC Ermenegildo Zegna Corp. e lI'Iar...ete... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 184 EXPANDING RETAILERS FROM RETAIL TENANT DIRECTORY (continued) Ethan Allen Interiors Inc. Famous Footwear Fleet Feet, Inc. Foot Locker, Inc. Franchise Concepts, Inc. Freshens Quality Brands Genesco Inc. GNC Corporation Great Harvest Franchising, Inc. Gymboree Corporation Hallmark Gold Crown stores Heel QuikL Inc.jFoot Solutions, Inc. Hermes Of Paris Inc. Hollywood Entertainment Corp. Hub Distributing Inc. ICED (Inti Center for Entrepreneurial Dev) Jimmy Choo Jones Apparel Group, Inc. KaBloom Flowers, LLC Kellwood Retail Group KinderCare Learning Centers, Inc. Krispy Kreme Doughnut Corp. L.A. Weight Loss Centers LaMar's Donuts Le Creuset Factory Outlet Lemstone, LLC Lenox Retail Liz Claiborne Inc. LUSH Fresh Handmade Cosmetics MAC Cosmetics Maynard's Food Centers, Inc. Mikasa, Inc. Minuteman Press International Mothers Work, Inc. Mrs. Fields Famous Brands, LLC Nebraska Book Co. New Balance Athletic Shoe, Inc. Nexcen Brands Nike, Inc. (Retail Division) FamilyMeds Group, Inc. FedEx Kinko's Office and Print Services, Inc. FOCUS Brands, Inc. Fossil Frederick's of Hollywood Stores, Inc. Gap Inc. Gilworth Furniture Goddard Systems, Inc. GWK Enterprises H.F.I. Corporation Hat World, Inc. Helzberg's Diamond Shops, Inc. Hibbett Sporting Goods, Inc. Hot Topic, Inc. Hugo Boss Fashions Inc. J. Crew Group, Inc. Jockey International, Inc. Jos. A Bank Clothiers Kahala-Cold Stone Corp. Kessler's Sports Shops, Inc. Kirkland's, Inc. Kuhlman Company Lady of America Franchise Corp. Landmark Luggage & Gifts, Inc. Leap Wireless International, Inc. Lenox Group, Inc. Liberty Fitness Holdings, LLC Loro Piana Luxottica Retail North America Mail Boxes Etc. U.S.A., Inc. Merle Norman Cosmetics Mikimoto America Morton's Restaurant Group, Inc. Movado Group, Inc. Naturalizer Retail Nestle Toll House Cafe by Chip New Horizon Kids Quest Inc. Nickels & Dimes, Inc. OfficeMax (Retail Headquarters) ell'lar...ete.... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 185 EXPANDING RETAILERS FROM RETAIL TENANT DIRECTORY (continued) Original Penguin OshKosh B'Gosh, Inc. PA Acquisition Corp. Panera Bread Company Payless ShoeSource, Inc. Perfect Line, Inc. Powerhouse Gyms International Qwest Communications International, Inc. RadioShack Corp. Red Wing Shoe Co. Restoration Hardware Rhino Video Games Rogers Ltd., Inc. S & K Famous Brands, Inc. Savvi Formalwear Schwenker & Mougin, Inc. Sears Holdings Corporation Sephora USA Inc. Sony Electronics E-Solutions Company LLC Staples, Inc. Steven Madden Ltd. T-Mobile USA, Inc. The Buckle, Inc. The Children's Place Retail Stores, Inc. The Home Depot, Inc. The Limited Stores The Men's Wearhouse The Sharper Image Corp. The Swatch Group Ltd. The Thomas Kinkade Company Things Remembered, Inc. Tiffany & Co. totes Isotoner Corporation U.S. Cellular Corporation Ultra Diamonds Urban Outfitters, Inc. Verizon Wireless Origins Overland Sheepskin Co. Pacific Sunwear of California, Inc. Papyrus Franchise Corporation Penzeys Spices PostNet Putt Putt Golf Courses of America R & K Birkestrand Inc. Rainbow Apparel Companies Rent-A-Center, Inc. Retail Brand Alliance, Inc. Ritz Camera Centers, Inc. Roots Canada Ltd. Sally Beauty Holdings, Inc. Schoeneman Brothers Co. Schweser's Stores, Inc. Select Comfort Corp. Sir Speedy, Inc. Sprint Nextel Corporation Sterling Jewelers, Inc. Street Corner The Body Shop The Cheesecake Factory Incorporated The Dress Barn, Inc. The J. Jill Group, Inc. The Little Gym International, Inc. The Running Room The Stride Rite Corporation The Talbots, Inc. The Wet Seal, Inc. Thom Brown of Boston Inc. Tom James Co. Tween Brands, Inc. U LT A Salon, Cosmetics & Fragrance, Inc. Under Armour, Inc. Vanity Shops of Grand Forks Versace USA ell'lar...ete.... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 186 EXPANDING RETAILERS FROM RETAIL TENANT DIRECTORY (continued) Wicks' N sticks Wilsons The Leather Experts Z Gallerie Zumiez Inc. Zale Corp. Victoria's Secret Stores Westcroft Beadworks, Inc. Williams-Sonoma, Inc. Winmark Corporation Yves DeLorme ell'lar...ete.... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 187 Appendix 8- B: Property Assessment Worksheet Downtown Properties: Ready for Company? So your downtown has a beautiful new streetscape. You've got strong market opportunity, the great location, directional signage and the marketing package. Now, where are you going to locate all those great business prospects? The worksheet below is designed to help you think through what properties are really ready for business tenants and which need some minor or major work. IOWA CITY VACANT PROPERTY ASSESSMENT Location of Property Size of Space Other Features Rate the following features of the property on a scale of 1 to 5, with 5 being Excellent and 1 being Poor. Physical Condition Physical Appearance Location Accessibility (pedestrian) Availability of Parking Visibility Relationship with & influence by neighbor businesses Owner attitude and involvement TOTAL SCORE (40 possible points) Draw Your Conclusions: . Which vacant properties are most marketable? . Are there inappropriate uses? . Are there properties needing extensive remodeling or that should be subdivided for tenants? . Are there properties that should be condemned? . What are your top properties for leasing? . What is the plan for working with the property owner to get properties ready to show? Source: Marketek, Inc. ell'lar...ete.... MARKET ANALYSIS TO MARKET RESULTS I DOWNTOWN IOWA CITY MARKET NICHE ANALYSIS 188 1 ~ 1 ~,..= -~ !~"W~'t ~ ~lIIn'- -"\~ CITY OF IOWA CITyrn:! MEMORANDUM Date: November 16, 2007 To: City Council From: Jeff Davidson, Director of Planning and Communi!:i Development rll Joe Fowler, Director of Parking and Transit ~ ~ Re: Downtown parking demand study The City's most recent downtown parking demand study was completed in 1997. This demand study provided the basis for the construction of Tower Place multi-use parking facility, as well as the parking portion of the Court Street Transportation Center. Tower Place is currently operating at capacity, and the Court Street Transportation Center has all monthly permits sold and hourly parking increasing. Several factors have led us to believe that we need to update the parking demand figures in the 1997 study, particularly: . The amending of the comprehensive plan to call for the expansion of the CB-10 downtown zone south of Burlington Street into the Near Southside area between Burlington Street and Court Street . The subsequent conversion of CB-5 zoned property to CB-10 zoning in the area south of Burlington Street. This includes the Hieronymus Square project (approved), the Big Ten Rentals project (under consideration), and the 301 South Dubuque Street project (withdrawn temporarily) . The addition of a significant number of CB-5 redevelopment projects along Gilbert Street between Burlington Street and Prentiss Street, and at the intersection of Court Street/Clinton Street, which has increased the commercial and residential intensity of these areas significantly. The JCCOG Transportation Planning Division and Iowa City Parking Division have recently completed a study. to update parking demand figures in the Near Southside redevelopment area. The results of the parking demand study update are summarized in the attached figure. The study shows that there is a need for an additional 1,028 parking spaces generated by recently completed or upcoming projects. An additional issue is the collection of Near Southside parking impact fees in conjunction with the above-mentioned proj1ects. You will recall that the Near Southside parking impact fee ordinance states that 25% of the residential parking generated by development projects in the CB-5 area of the Near Southside neighborhood will be provided on site, with the remaining 75% accommodated through a parking impact fee. These fees are collected by the City and used to provide City constructed parking facilities. The Near Southside parking impact fee is generally accepted by developers because it is much less expensive to provide funds to the parking impact fee fund than it is to provide on-site parking in the CB-5 Zone. However, this obligates the City to use these funds for parking facilities in the Near Southside within five years or they are returned to the developer. The Court November 16, 2007 Page 2 Street Transportation Center used parking facility impact fees for a portion of the local funds for that project. The CB-10 zone does not have a parking requirement; the City provides downtown parking. However, the City's policy for the recent upzoning of property from CB-5 to CB-10 for large- scale projects such as Hieronymus Square has conditioned approval on a similar arrangement for parking as is required by the CB-5 Zone. This has led to a projection of a substantial amount of parking impact fees being paid in the near future. The existing balance in the Near Southside parking impact fee fund is approximately $275,000. We estimate within two to four years that this fund could be between $1-$1.5 million. As stated previously, these funds must be used within five years or they are returned to the developer. Policy Question There is a significant policy question before the City Council. If you are to continue with the expansion of the Central Business District south of Burlington Street, we must begin planning immediately for the next multi-use parking facility. We emphasize the term "multi-use parking facility." No longer are stand-alone single use parking facilities an acceptable model for downtown Iowa City. The multi-use model which was used on Tower Place and the Court Street Transportation Center has been successful in integrating parking facilities which are functional, aesthetically pleasing urban buildings into the downtown, while also providing the critically needed parking required for the downtown to grow. We believe any banker or developer will tell you that the provision of parking is a prerequisite for any successful downtown building project. We would like to have an .indication from the City Council if you would like us to commence planning for our next multi-use parking facility. There is at minimum a three-year timeline for planning, property acquisition, design, and construction. If we commence our process immediately, we will not have a facility online until 2010 at the earliest. If you are not prepared to commence such a planning process, then we recommend you suspend the consideration of rezonings from CB-5 to CB-10 in the area south of Burlington Street, and not pursue the expansion of downtown at this time. Even with this action, we would anticipate a downtown parking crisis if the ongoing trend in building in the CB-5 zone continues. The recently released Downtown Market Study contains several initiatives for the retail, housing, office, lodging, and entertainment sectors. The report cites parking as an ongoing issue. If the City is to be aggressive about the marketing and growth of downtown, then we must address the provision of parking for these uses. If you wish to proceed, this is a superb opportunity to incorporate other priorities for the City into the proposed multi-use facility. There are three initiatives in particular which we would like to highlight for your consideration. Workforce Housing The soon-to-be-released Downtown Market Study calls out workforce housing as a specific type of downtown residential development which is needed and will require the City's involvement. It is simply too expensive for private developers to provide downtown housing that can be marketed in the $150,000-$275,000 price range. There is much unmet demand for this type of condominium housing according to the downtown market study. Workforce housing is houising for persons who fill jobs such as downtown retail managers; municipal, county, school district, and Federal employees; police officers and firefighters; and young professionals employed by the University. We believe a project can be put together where the City would partner with a private developer for the air rights above the parking facility, thereby taking the property element out of the developer's equation. The City would also be able November 16, 2007 Page 3 to partner with the developers in providing parking for the facility. Downpayment assistance and tax abatement are other common incentive programs for downtown workforce housing projects. We believe this could be a successful project that could create between 50 and 150 units of workforce housing. Attached is an example of a similar structure in LaCrosse, Wisconsin. Artist Live-Work Units We've been in contact with the Artspace organization, the miSSion of which is to create affordable space for artists and art organizations in downtown areas. Artspace began as an organization that went into downtowns and converted old warehouse buildings into live-work units for artists. They have subsequently expanded into new buildings in downtown areas. Our proposed project would be an opportunity to establish live-work units in the downtown area specifically for artists. The Artspace organization tells us that in addition to helping artists grow professionally and achieve financial stability, their projects have other spinoff benefits such as increasing pedestrian traffic, improving the lively character of streetscapes, and fostering spinoff commercial development and cultural activity. Commercial Condominiums The Downtown Market Analysis has also identified small commercial condominium spaces as being an unmet demand in downtown Iowa City. There are persons who would like to own their own commercial spaces downtown, but cannot afford the prices of downtown buildings. The City had a very successful commercial condominium project in the Tower Place facility. We were able to sell all of our commercial condominiums in a relatively short timeframe and for a profit. We have also become aware that there is a healthy resale market for these commercial condominiums. We were unable to build more commercial condominiums in the Court Street Transportation Center project because the Federal funds we used required all of the property remain in City ownership. With our proposed project, we could enable commercial condominiums to be constructed on the first and possibly second floor of the facility, creating property tax paying businesses that provide an active, lively street presence. Conclusion Please be prepared to give us direction at your November 26 work session in terms of how you would like us to proceed. If you wish to have us proceed, our immediate need is to hire a consulting firm familiar with the types of mixed-use projects that we have proposed, to assist us with the financial analysis and concept design for the project. Our preliminary discussions with such a consultant have received a favorable review of the prospects for our proposed facility. The estimated consultant fee is approximately $35,000. We would also like to discuss property acquisition with you and would propose to do that in closed session if you wish to proceed. We look forward to the discussion at your November 26 meeting. cc: Dale Helling Eleanor Dilkes John Yapp Chris O'Brien Bob Miklo ppddir/memlDowntownParking11-13-07.dOC November 16, 2007 Page 4 South 9f Burlington ~treet parking demand analysis/Recent and upcommg construction Addressl SF office I Comm/office Dwelling Resident Total On-site Net parking Statusl commercial parking unitsl demand parking parking demand Owner demand bedrooms demand provided increase 313-353 S Gilbert 23,000 SF 23' 51 units 2202 243 97 146 (under cons) commercial City Center 220 bdrms Partners (Clark) 425 S. Gilbert 9,000 SF 9 24 units 108 117 37 80 (recently commercial completed) 108 bdrms College Town Partners (Clark) 500 S Gilbert 0 0 21 units 84 84 63 21 (recently completed) 84 bdrms University View Partners (Clark) 335 S Clinton 9,000 SF 9 18 units 72 81 18 63 (under cons) commercial University View 72 bdrms Partners (Clark) 336 S Clinton 11,000 SF 11 24 units 93 104 28 76 (under cons) City Center 93 bdrms Partners (Clark) 301 S Dubuque 17,000 SF 17 38 units 75 92 0 92 (in design)3 commercial Three Bulls. Inc. 75 bdrms 314 S Clinton 45,000 SF 45 60 units 150 269 80 189 (in design) commercial Hieronymus 150 bdrms Partners 74 hotel 74 units Old St Patrick's 13,000 SF 13 132 units 430 443 82 361 property (conceptual)5 430 bdrms Total 201 1202 1403 413 1,028 space demand 1) According to the Eno Foundation for Transportation, it is reasonable to assume demand for 1.0 spaces of parking for every 1,000 SF of commercial or office space in a downtown with heavy transit use and the potential for secondary trip destinations as a pedestrian. The non-CBD commercial and office parking ratio is a minimum one space per 250-300 SF for retail and office businesses. 2) This analysis assumes a parking demand of one off-street parking space per bedroom for downtown multi-family structures. 3) For projects that are in design or anticipated, parking demand numbers are estimated based on the size of the site and, where applicable, concept plans from the property owner or prospective developer. 4) This is the total estimated demand for parking not provided on-site. This demand will be met in parking structures, metered spaces, or on nearby residential streets that allow on-street parking. 5) Requires rezoning to CB-10 November 16, 2007 Page 5 Attachment: Multi-Use Parking Facility - LaCrosse, WI ppddir/memos/downtownparking11-13-07.doc J 1ip167 I ell FT). I ." _, _ " '"",J' 2001/l0V 15 Pli 2: 07 C'-"" '-.: ,--,-,1/ I i Y \~)U:::.t'ii'\ IO'Mt ('l';'v lr)'\,ft//\ VI/ \ U , " I," IV"' DIANA MCGINNIS Windsor Square 1300 G Street, #EI02 Lincoln, Nebr. 68508 November 6, 2007 L. Lynn Rex, Executive Director League of Nebraska Municipalities 1335 L Street Lincoln, Nebr. 68508 ~(Q)~)7 Dear Ms. Rex: Enclosed is a HModel Municipal Ordinance (For a Parallel Accounting of Municipal Finances in Constitutional Dollars)," copies of which I believe the League of Nebraska Municipalities ought to disseminate to the councils and boards of its member cities, towns, and villages, along with a recommendation for its adoption. Its adoption could help to ensure that the municipalities of Nebraska are not deceived about the true state of their fmancial. conditions by employing as their sole unit of account Federal Reserve Notes, which are an unreliable and constantly depreciating fiat currency (in contrast to silver or gold). To measure financial conditions with a Wlit of account that is generally sluinking in (barter) value makes about as much sense as measuring the length of a physical object with a generally shrinking ruler! In fact, the League might inform Nebraska's municipal officeholders that they might be well advised to adopt the practice of parallel accounting (at least to some extent) for their personal fmances as well. Adoption of parallel accoWlting in constitutional dollars by Nebraska's mWlicipalities will also make the transition easier when the legislature of the State of Nebraska adopts a legal tender bill (similar to the "Model State Act" that appears on "" pages 1664-6 of constitutional auorney Edwin Vieira, Jr. 's, monumental book Pieces of Eight; The Monetary Powers and Disabilities o/the United States Constitution, 2nd Revised Ed.., ISBN 0-9671759-1-7) in observance of the prohibition against any State's "mak[ing] any Thing but gold and silver Coin a Tender in Payment of Debts" (U.S. Const., Art. I, sec. 10, c1. 1). Perhaps after the municipalities of Nebraska grasp the folly of relying on a constantly depreciating currency, the League may even wish to spearhead the movement for enactment of such a state statute in the State of Nebraska. Major obstacles to implementation of legislation fashioned after th.e "Model State Act" are the state sales and capital "gains" taxes and the national capital "gains" tax 2 levied on gold and silver coin (although the "gains" are largely illusory). Constitutional "Money" (i.e., gold and silver coin) ought to be exempt from taxation. The p~es~nt taxes penalize the use of constitutional "Money': and encourage the use of unconstItutIonal scrip. Enactment of ordinances fashioned after the "Model Municipal Ordinance" may help municipalities and their publics to recogrllze the truth of this and support efforts to eliminate the taxes. Fortunately, these onerous taxes do not hamper the implementation of parallel accoWlting. ..\ Thank you for your attention t9 )his matter. ":.":../ , . , ..../FU '-, ..~ (Q)~~p Sincerely yours, !Y~ lfL~ Diana McGinnis P.S. .Copies ofE. Vieira's Pieces of Eight can be found at the Nebraska State Library in the State Capitol Building and at Love Library on the University of Nebraska Lincoln campus. P.P.S. I have been advised that there is an "electronic gold currency bill" . (www.goldmoneybi~l.org) that has some advantages over the earlier "Model State Act" set out in Pieces of Eight that uses only actual coins. You might check this out. P.P.P.S. The fact that today most Americans have forgotten that the U.S. dollar is the silver coin referred to in the U.S. Constitution and now associate the word "dollar" with a central bank's scrip puts this pseudo."dollar" one small step from being transformed into the "amero" of a North American Union that is already being openly talked about (and eventually transformed into a one-world currency). If you love your country and your liberties, heed the words of Thomas Jefferson: "I believe that banking institutions are more dangerous to our liberties than standing armies." Parallel accounting is a first step to reaffirmation of the true U.S. dollar. Ene!.: "Model Municipal Ordinance" and "Example of Calculations" Cc: Mayor Chris Beutler of Lincoln, Nebr. City Attorney Dana Roper of Lincoln, Nebr. v-'City Councils of selected mtmicipalities - in the State ofNehraska - in other States of the Union Dr. Edwin Vieira, Jr. Congressman Ron Paul (Texas) Congressman Jeff Fortenberry (Nebr.) Et al. ,......" 0 c:" = ~ --.J 0 ...,~:.:.:.. :f> c-:; -< ..:-1:::: 11 c) -----1 (=-~_~I Ul -'~ I !-n -- " r-- -v .----.. ~ #-~~; -.";", '\~) '--' 7;; ...,.- N -"'" :> 0 -J MODEL MUNICIPAL ORDINANCE (FOR A PARALLEL ACCOUNTING OF MUNICIPAL FINANCES IN CONSTITUTIONAL DOLLARS) AN ORDINANCE relating to the reaffirmation of and (parallel) accounting use of the constitutional unit of account of the Uruted States of America, the dollar (i.e., [the value of] a coin containing 371.25 troy grains of pure silver). BE IT ENACTED BY THE COUNCIL OF THE CITY OF SECTION 1. The Council of the City of finds and declares that- (a) As an incontrovertible matter of historical record, the U.S. Constitu- tion, the supreme law of the land, refers twice to and adopts as the unit of account of the United States, the dollar, in Article I, Section 9, Clause I and Amendment VII, which dollar was and is a coin containing 371.25 troy grains of pure silver and cannot - without amendment of the supreme law (i.e., the U.S. Constitution) - be redefined otherwise. (b) The operation of Gresham's law has removed our nation's unit of account, the doHar, from circulation so that what remains in circulation are notes ("Securities" by constitutional definition [Article I, Section 8, Clause 6] as opposed to "Money," which by constitutional definition includes only gold and silver coin [Article I, Section 8, Clauses 2, 5, & 6 and Article I, Section 10, Clause 1] and auxiliary base-metallic slugs, which, though bearing the word "dollar," possess a discounted value from the actual constitutional dollar. (c) This City has the need and the duty to protect itself and its inhabitants from the misleading and illusory measure of economic prosperity that results from the general depreciation of a fiat unit of account without intrinsic value by employing a stflble unit of account, the standard silver dollar, which, in addition to being (relatively- )stable, is constitutional (As a practical matter, this consists of a parallel accounting of public finances in constitutional dollars). SECTION 2. For purposes of this Ordinance -- (a) The term "dollar," or "constitutional dollar," shall be the constitutional, or standard, silver "dollar[ ]" of the United States of America, containing 3 71.25 grains (troy) fine silver, as originally adopted in Article I, Section 9, Clause 1 of the Constitution of the United States, and the Seventh Amendment thereto; historically determined in Section 9 of the Coinage Act of 2 April 1792, ch~pter 16, 1 Statutes at Large 246, 248; and coined or minted in the aforesaid weight of silver by authority of Congress from time to time pursuant to Article I, Section 8, Clause 5 of the Constitution of the United States, and, particularly for the accounting purposes of this Ordinance, the value of this dollar and shall be expressed as "C$" for clarity, or simply "$." r--.) (b) The term "pseudo-'dollar'" (or "Federal Reserve Note pseu~- g 'dollar"') shall denote a Federal Reserve Note bearing the word "dollar~y~ J> =:; ~ C~) -'-, Tl =-.1 C".~) ~:-"<.~j r Ul V IT! --.-, :._J ~;2 ;j~~ <~ .....- p N o 0:> 2 of the auxiliary base-metallic slugs bearing the word "dollar," or the value thereof, and shall be expressed as "FRN$," or simply "FRN." SECTION 3. For purposes of this Ordinance, the "value" of the City's parallel unit of account, the constitutional dollar (C$, or $) shall be calculated by multiplying the value of one ounce of fine silver (as expressed in the present de facto mediwn of exchange, the Federal Reserve Note pseudo-"dollar" [FRN$, or FRND by 0.7734(375). SECTION 4. On and after the effective date of this Ordinance, this City shall denominate all public accounts, and record the value of all public assets and liabilities, in constitutional (standard) silver dollars (C$, or $) of 371.25 grains (troy) of fme silver - in addition to the current practice of denominating all public accounts and recording the "value" of all public assets and liabilities in Federal Reserve Note pseudo-"dollars" (FRN$, or FRN). (OPTIONAL addition to SECTION 4, along with appropriate revisions to other sections) ... and, on and after the effective date of this Ordinance, this City shall also denominate all public accoWlts and record the value of all public assets and liabilities in the other constitutionally-defmed form of "Money," a weight of gold (coin), the weight of fine gold for the purposes of this Ordinance being a(n) * and notated as *the most convenient weight of gold probably being, at present, the OWlce (perhaps notated as "<tI"). - (Please freely reprint and distribute this "Model Municipal Ordinance" throughout your own and other municipalities throughout the nation) Q ~--:::.{-..., ~- ',,) (-> ---; ,,-, = <::::> ---J -,... ~,,,- CJ < '11 en 2 -;,,., "-11 .--~l :.....J N a co Example of Calculations for Parallel Accounting in Constitutional Dollars (C$, or $), alongside Federal Reserve Note Pseudo-"dollars" (FRN$, or FRN) 1 Constitutional Donar = 371.25 grains (troy) of pure silver. 1 ounce (troy) = 480 grains. 371.25 gr. divided by 480 gr. = 0.7734(375). At the end of September 2007, 1 ounce (troy) of pure silver = FRN 13.65. FRN 13.65 X 0.7734(375) = FRN 10.55742188, rounded to FRN 10.56 = C$1.00 1 / FRN 10.55742188 (i.e., C$l.OO) = C$0.094720094, or C$0.09 = FRN 1.00. 1 / C$0.094720094 (i.e., FRN 1.00) = FRN 10.56 = C$1.00. lUse computer calCUlators for greater accuracy] And at the end of September 2007, [One gold ounce might be notated as $] 1 ounce (troy) of pure gold = FRN 743.00. FRN 743.00 = $ 1.00. 1 / FRN 743.00 (i.e., <tJ 1.00) = <tJ 0.001345895 = FRN 1.00. I / $ 0.001345895 (i.e., FRN 1.00) = FRN 743.00 = <$ 1.00. T ABLE O~ EXCHANGE RATES (end of September 2007) FIAT CURRENCY* CONSTITUTIONAL MONEY Pseudo- "donar".. U.S. Dollar Gold Ounce FRN $ Q; FRN 1.00 10.56 743.00 $ 0.09 1.00 70.38 Q; 0.0013 0.01421 1.00 *in the same league with the other foreign fiat currencies (e.g., U.K. pound, E.U. euro, and Japanese yen). * * future component of North American Union "amero"? ;"'......~ c"::} c,:> '--1 2; "-'=1''''"'"' J.J en '~'I---i' :E N a 0:> ~rpP- City ofIowa City, Iowa - Official Web Site rn efC'!!'!:!,'! IlEllmllllallllDDlBll1IIEDllllsearch J city services J organization chart J city code J maps II News Good Evening! Monday, Nov. 19, 2007 410 East Washington Street, Iowa City, IA 52240 Ph: (319) 356-05000 News Releases Update on Leaf Vacuum Service - Extension Monday, November 19,2007 - 1:18:00 PM Originating Department: Streets I Solid Waste Contact Person: Rick Fosse, Public Works Director Contact Number: 319-356-5141 The City's regularly scheduled Leaf Vacuuming Service will end this week. At this time of year City crews must begin to convert trucks to winter snowplow use by removing the leaf boxes and installing plows and sanders. This is a process that takes a number of days and is necessary in order to be prepared for the inevitable first winter storm. However, this year the leaves have been slow to fall and many residents have called to ask if the program can be extended. Given the unusual year, it has been decided that some of the trucks will continue to vacuum leaves until they are interrupted by a winter storm event. A reduced crew will continue to vacuum leaves throughout the city, beginning on the west edge the week after Thanksgiving. A fixed schedule will not be used because the progress will be weather dependent and productivity will be reduced because fewer trucks will be available to haul the leaves. This service will continue until there is a snow or ice storm of a magnitude that will make it necessary to convert all of trucks to plows and sanders or if the leaves become wet and frozen. Once leaves become wet and frozen, they are difficult to vacuum and ice chunks will damage the vacuum equipment. If weather conditions stop the leaf vacuuming service before all the leaves have been vacuumed, it will be necessary for residents to bag the remaining leaves in yard waste bags and put them at the curb for pickup on their regularly scheduled garbage day. City Resources . City Channel . Library Channel . News Releases . Senior Center TV Local Media . TV KCRG, KFXA 28, KGAN, KWKB, KWWL PATV Ch. 18 . Print Gazette, IC Press Citizen, Daily Iowan Des Moines Register . Radio KCJJ, KCRG, KHAK, KRUI, KSUI, KXIC, KZIA, WSUI, WMT . Cable Mediacom . Weather E-Services . Contact Us . Subscribe to City Info. (ICGOV2U) home I services I business I calendar I news I jobs I departments City of Iowa City - 410 East Washington Street - Iowa City, IA 52240 http://www .icgov .org/news. asp ?ID= 5859 11/19/2007 1m City of Iowa City Task Force on Violence Against Women Meeting Agenda Monday, November 26,2007 4:00pm to 5 :OOpm Iowa City Public Library, Meeting Room A 1. Welcome and Introductions 2. Review Goals/Objectives of Task Force 3. Review public input UISG & Panhellenic Council petition Evaluations from Public Meeting on Safe Streets 4. Draft strategy to meet goals & objectives 5. Schedule subsequent meetings City of Iowa City Task Force on Violence Against Women Parameters of Task Force based on Resolution passed on October 16,2007 The Task Force must present, within 6 months of inception, specific recommendations to the Iowa City Council ~ and the wider community - that have the potential to reduce sexual assaults and other assaults against women. The Council requests the Task Force address the following: Goals: . To decrease the incidence of violence against women - including sexual assault, other assaults ~ in Iowa City. . To promote accountability of perpetrators of violence against women. . To support efforts of members of the community - both men and women - to promote a community climate that does not tolerate violence against women. Objectives: . To review current community responses to violence against women - including sexual assault, rape, and attempted sexual assault - Iowa City. . To explore efforts to strengthen or expand current community responses. . To consider new options for prevention, education, and intervention to end violence against women. . To address specific suggestions from the Petition by University of Iowa Students to the Iowa City Council. *1 Petition by University oflowa Students Sponsored by University of Iowa Student Government and Panhellenic Council This is a petition for the immediate creation of a task force made up of various stakeholders (law enforcement, students, University administrators, Iowa City residents, Council members, and others). The purpose of the task force is to look into what is currently being done to address the increase in sexual assaults, possible options for further prevention, and education of Iowa City residents. Task Force Objectives include, but are not limited to: 1. Create a Neighborhood Watch/Patrol Program. 2. Increase resources of the Iowa City Police Department. 3. Educate the public on current initiatives and services being provided. 4. Evaluating current street lighting and exploring further options. We are not asking for detailed information on current law enforcement initiatives. We understand this is currently their number one priority. We are asking for this Task Force to be created in response to their request for assistance (See 9/13 Information Packet). Safety in Iowa City is larger than just a University issue, an Iowa City Police issue, or a City Council issue. We believe a community-wide effort is necessary to prevent further attacks in the Iowa City Community. We ask that this proposal be included in next week's (Monday, September 24th) Work Session or that an additional meeting be set up. Carole Peterson Vice President of Student Body (319) 335-3860 carole-peterson@uiowa.edu Anne Barber President, Panhellenic Council UISG Senator 07-08 (319) 290-8969 anne-m-barber@uiowa.edu Sarah Milani VP of Panhellenic, Delta Gamma Sorority UISG Off-Campus Housing Senator 07-08 (815) 988-8723 sarah-milani@uiowa.edu ~y U!] 8fr) t- ~ GY ~ / City of Iowa City, Iowa - Official Web Site ele'!!'!:!,'! 11III...11II---- departments 11m search J city services J organization chart ) city coda :] maps II News Good Afternoon! Wednesday, Sept. 12, 2007 410 East Washington Street, Iowa City, IA 52240 Ph: (319) 35-6.5000 News Releases POLICE INVESTIGATIONS INTO ATTACKS ON IC WOMEN CONTINUE Tuesday, September 11,2007 - 11:07:00 AM Originating Department: Police Contact Person: Sgt. Troy Kelsay Contact Number: 319-356-5293 The Iowa City Police Department continues to investigate on-going incidents of sexual assaults, attempted sexual assaults, and forcible fondlings. The investigations have identified some common denominators. Isolated females walking alone at night is clearly the most obvious common factor. DO NOT WALK ALONE AT NIGHT. Other, less universal trends have also been identified. In several forcible fondling incidents a similar suspect description and method has been identified: . A white male, 5'-08" to 5'-09", 160-170 pounds; . Twenty to 25 years of age; . Dark hair; . Does not speak to the victim; . Attacks occur between 9pm and 2:30am; . Attacker has fled when the victim yells and/or offers resistance; . No weapons were displayed. Not all of the attacks fit this pattern. In some of the attacks, the victim has been knocked to the ground. Sometimes the victim's clothing has been pulled aside or removed, and in some attacks the suspect has more violently assaulted the victim. Different suspect descriptions have been developed in some incidents. The Iowa City Police Department has released suspect composite sketches in several incidents. These can still be found on the Iowa City news page - http://www.icgov.org/news.asp . More information and safety tips can be found in an article on the Iowa City Police Department webpage - http://www.icgov.org/police/headlines.asp?ID=58 . The Police Department's investigation has been made more difficult by the sporadic nature of these assaults. The Police Department continues to dedicate Patrol and Investigations officers to prevent further attacks and to identify suspects responsible for past attacks. The department will continue to use various techniques to address this threat to the community. Other local law enforcement agencies - the University of Iowa Police Department, the Coralville Police Department, and the Johnson County Sheriffs Office - have provided assistance and officers to supplement the Iowa City http://www .icgov. org/news. asp ?ID=563 2 City Resources . City Channel . Library Channel . News Releases . Senior Center TV Local Media . TV KCRG, KFXA 28, KGAN, KWWL PATV Ch. 18 . Print Gazette, IC Press Citizen, Daily Iowan Des Moines Register . Radio KCJJ, KCRG, KHAK, KRUI, KSUI, KXIC, KZIA, WSUI, WMT . Cable Mediacom . Weather E-Services . Contact Us . Subscribe to City Info. (ICGOV2U) 9/12/2007 City ofIowa City, Iowa - Official Web Site Police Department's efforts. The prevention and resolution of these criminal acts is a priority for the Iowa City Police Department. To that end, we ask for timely reports of such incidents and of any suspicious persons. Be attentive to your surroundings. If you feel at all threatened or uncomfortable by the actions of another, immediately call the Iowa City Police Department - 356-5276 or 911 (as appropriate) - to report the suspicious activity/person. If you witness or interrupt an attack, fondling, or an apparent stalking of a victim, immediately report the information to the police. Be prepared to provide any or all of the following information: suspect description, suspect's location or direction of travel, exact location of the event, suspect vehicle information, etc. A community effort is needed to prevent further attacks and hold those responsible accountable. I' .. ~~, -1J. Cltv.t <'- -~ f,\ Page 2 0[2 home I services I business I calendar I news I jobs I departments City of Iowa City - 410 East Washington Street - Iowa City, IA 52240 Copyright 02001-2005 City of Iowa City. All Rights Reserved. Contact Website Manager Web Policies Email and other communication sent to the City of Iowa City are subject to the Iowa open records law. http://www . ic gOY .org/news. asp?ID= 5632 9/12/2007 Written Comments Collected at the Public meeting on Safe Streets September 26, 2007 - Englert Theatre 1. What do you believe are the positive aspects of our community and university response to date? . Spreading awareness, Increased community awareness . Information Sharing, Gathering community feedback, Opening up dialogue at the Public Meeting . Emergency alarms . Nite Ride . Crime stoppers tip line . Unified local response . Overall a fairly safe community . Self-defense classes . People speaking out . Increased patrol, bike and foot patrols . Approach has become more comprehensive . Sting! decoy operations . Press coverage . University communication . R V AP whistles 2. What most concerns you about our community and university responses to date? What else can we, as a community, do to make our streets safer? Other comments? Police specifically- VI and/ or Ie . I don't think the police (city and university) are activity trying to protect the women of Iowa City- Preventing assaults should be more important than fining for P AULAs and public intoxication . IC police being more helpful and positive about women reporting (they didn't want to help me when I reported a neighbor who tried to assault me 2 years ago) . Not enough police presence away from downtown . Negative student/police relations may impair the city's response - something must be done to quell the mistrust between the students and the IC police City Council specifically . Better lighting- lighting not sufficient . Sidewalk-directed lighting must be improved - perhaps use neighborhood associations to help with assessments . Emergency call boxes in neighborhoods . Reconsider late public transportation, late buses I University specifically . Blue lights - they all should be working and they all should have cameras . Expel from the University any student who commits an assault Nite Ride . Nite Rides does not include men . Publicize Nite Ride . Expand Nite Ride to Thursday nights . Look to local car companies to help off-set costs of the Nite Ride vanes) Everyone/ Misc. . classes to educate men and others about the oppressed status of women o Male safety caucus/ forum o Focus on men and male responsibility in ending violence . free self-defense classes for all women of Iowa City . extend the conversation to include ways in which women are threatened and assaulted daily as part of normative behavior . Talk more about the culture of violence. Do not foster underlying structures of sexual violence . Create a community that respects women and does not tolerate disrespect of women . Follow-up public meeting . Stop spending so much money on football games, which leads to assaults . Promote less drinking o Have more non-alcohol related activities to do at night, especially downtown . Neighborhood watch . Implement grassroots efforts, have individuals and community groups get directly involved in bike/ foot patrols, changing culture, enforcing standards of civility, neighborliness, cooperation, and assistance, rebuilding civic involvement . Join the National Night Out movement . Community-wide response has been slow . Recognize violence against GLBT people and people of color to really tie in violence against all people . Educate residents of the shame and unacceptability of sexual assaults and that women should not have to live in fear . Safe Walk Program . Media saturation concerning services offered - use Facebook and downtown fliers as well . More resources for preventing violence against women . Community members need to be proactive, police patrols can only do so much . Address racism, sexism, and victim blaming 2 TASK FORCE MEMBERS Iowa City Police Department - Sam Hargadine - Sam-Hargadine@iowa-city.org Downtown Association & Englert Theatre - Beth Bewley - beth@englert.org Johnson County Attorney's Office - Janet Lyness - ilyness@co.iohnson.ia.us University of Iowa Police Department - Chuck Green - charles-green@uiowa.edu Rape Victim Advocacy Program - Diane Funk - Diane-Funk@uiowa.edu Women's Resource and Action Center - Monique DiCarlo - monique- dicarlo@uiowa.edu Johnson County Coalition Against Domestic Violence & Iowa City Police Department -Bob Hartman - Bob-hartman@iowa-citv.org University of Iowa Student Government - Carole Peterson - carole- peterson@uiowa.edu University of Iowa Panhellenic Council - Anne Barber - anne-m-barber@uiowa.edu University of Iowa Student Government - Sarah Milani - sarah-milani@uiowa.edu City of Iowa City Neighborhood Services - Marcia Klingaman - marcia- klingaman@iowa-city.org Iowa City Transit -Ron Logsden - ron-logsden@iowa-citv.org University of Iowa Interfraternity Council-Alan Cosby - alan-cosbv@uiowa.edu University of Iowa Parent Association - Belinda Marner - belinda-marner@uiowa.edu Domestic Violence Intervention Program - Kristie Doser- kristiedvip@southslope.net University of Iowa Counseling Service - Sam Cochran - sam-cochran@uiowa.edu University of Iowa Council on the Status of Women - Diana Harris - diana- harris@uiowa.edu CO-CHAIRS: Iowa City Council Member Amy Correia - Amy-correia(ilJ,iowa-city.org UISG City Council Liaison Abbie Volland - abigail-volland(ilJ,uiowa.edu DRAFT MINUTES AI\; N\~ \ ~--(.."'"TQ Sot fO~c.e.. City August 23, 2007 - 5:30 P.M. Meeting Room E -- Iowa City Public Library Call to Order: Meeting called to order at 5:38 p.m. Members Present: Jane McCune, Teresa Kopel, Paula Kelly, Lisa Drahozal Pooley Members Absent: Pat Farrant Staff Present: Misha Goodman Others Present: Holly Hotchkiss, Roxanne Schomers Old Business: 1. Minutes of July 12, 2007 approved as submitted. 2. Continue permit and fees discussion Per Misha Goodman, the tethering/kenneling ordinance is still at the City Attorney's office for evaluation. Fees recommended by the Animal Care Task Force: License fees for both dogs and cats: A. Unaltered license fees will increase from $30.00 to $50.00 B. Altered license fees will increase from $5.00 to $10.00 C. Low income altered license fees will remain at $5.00 D. Senior discount fee to be eliminated (reasoning: if financial hardship exists, this will be covered under low income fees for licenses) E. A temporary license can be issued for 30 days to allow time to spay/neuter. Pet Store Permit Fees: Class A: Pet stores that do not sell cats and dogs -- $100.00 Class B: Pet stores selling under 1 00 ALTERED cats and dogs --$300.00 Class C: Pet stores selling under 100 UNALTERED cats and dogs --$500.00 Class D: Pet stores selling under OVER 1 00 ALTERED cats and dogs --$1000.00 Class E: Pet stores selling under OVER 100 UNALTERED cats and dogs --$2000.00 Reasons for Pet Store Permit Fees: 1) Fees have not been increased for some time; 2) Fees are to encourage reduced amounts of animals being sold in Iowa City to address current overpopulation of dogs and cats; 3) there are too many litters currently being ~ born; 4) Animals currently being sold are generally not spay/neutered prior to being purchased. The Animal Care Task Force plans to recommend that a percentage of the pet store fees and unaltered license fees be placed into a spay/neuter fund. 3. Continue Committee discussions - POSTPONED 4. Continue statistics/educational seminars discussion - POSTPONED 5. Continue Center hours extension discussion - POSTPONED New Business: 1. Solon impound situation update Per Misha Goodman, 58 dogs were impounded at the Center from the Solon situation. 19 goats were also taken, though 7 have died of anemia, parasites, stress and heat. The goats were sold at the Kalona sales barn, proceeds to go to the county to help pay expenses, including boarding expenses for the dogs. The one goose remains with Dr. Jen Doll. Of the 58 dogs: 9 have been euthanized at this time 8 have been transferred to Dubuque and Muscatine shelters 3 are in foster care; 2 are slated to be fostered 3 have been adopted 14 are available for adoption The rest are not yet ready for evaluation Misha Goodman met with the County Attorney and Sheriff s Department. Charges will be brought against the couple involved. There is currently a lien against the property. Misha Goodman expressed that the press has been good; the Animal Care Task Force agreed. Leash on Life is sponsoring a debriefing session for the Center staff and volunteers who were present at the Solon site. 2. Next meeting dates: Sept 13th 530-7 Oct 11 th 530-7 3. Cat overcrowding Holly Hotchkiss from Friends of the Animal Center Foundation presented information to the Animal Care Task Force concerning a mobile spay/neuter clinic. The shell would cost $130,000; customization would run $200,000 - $250,000. The challenge would be keeping the clinic up and running. F ACF is researching how to make it work. 2 Recommendations to City Council: Task Force Member Comment: Staff Comment: Citizen Comment: 7:07 p.m. meeting adjourned. 3 mJ DRAFT MINUTES City ofIowa City Animal Care Task Force October 13,2007 - 5:30 P.M. Meeting Room E -- Iowa City Public Library Call to Order: Meeting called to order at 5:50 p.m. Members Present: Jane McCune, Pat Farrant, Lisa Drahozal Pooley Members Absent: Paula Kelly, Teresa Kopel Staff Present: Misha Goodman Others Present: Old Business: 1. August 23 minutes approved as submitted. 2. Continue permit and fees discussion Task Force members discussed the questions posed by Sue Dulek concerning the validity of the Task Force's proposed pet store fees. In an email to Misha Goodman, Sue Dulek referred to an Iowa Supreme Court case that ruled that fees charged by cities for licensing must be reasonably related to the City's administrative costs. Misha Goodman will ask the City Attorney's office how other city fees have been determined in the past, i.e. what criteria was used in determining them. Task Force members will work on the pet store fees proposal and will include reasons to validate the higher fees for larger stores and those selling unaltered animals. Misha Goodman suggested pet store permit fees could go to a spay/neuter fund. Misha Goodman reported on other ordinances in progress: 1) Tethering ordinance: the City Attorney is working on the wording of this ordinance. 2) Mandatory microchipping of pet store cats and dogs ordinance; Misha has written a draft of this ordinance and will also write the section allowing the Animal Center to microchip owned pets. 1 . 3) Ordinance banning exotic animal displays, circuses and rodeos. Lisa Drahozal Pooley will work on the wording of this ordinance and submit to members for review. 3. Continue Committee discussions (postponed until the next meeting) 4. Continue statistics/educational seminars discussion Members agreed to brainstorm topic ideas and presenter possibilities. Seminars would be highly accessible to the public in cost, duration and location. Members hoped to have a schedule set up to start in January 2008. 5. Continue Center hours extension discussion This has been removed from the agenda for the time-being. Hours expansion (namely extending Saturday hours past 3 p.m. to allow for more weekend visitors and to help the animals with housetraining as they currently go from 3 p.m. to 7 a.m. the next day without access to the outside) is not possible without additional employees. 6. Solon impound situation update Four dogs are still in foster (two are puppies). Six are in the shelter still available for adoption. Several have been adopted. F ACF placed a thank you ad in the Press Citizen. Misha Goodman reported that the Mayor would be placing an ad thanking area businesses for their assistance during the Solon impound. New Business: Members discussed the feral cat issue in Iowa City. Misha Goodman reported that a HSUS emergency response vehicle will be maintained at the Iowa City Animal Center. It will be parked at the Water Treatment Plant. Misha Goodman reported that Coralville is renegotiating its contract with Iowa City Animal Control due to its concern over costs. Coralville wants to remove animals picked up in Coralville from the IC Animal Center after 45 days. They will transfer these animals to an individual who will attempt to rehome them. Task Force members and Misha Goodman raised concerns over regulations and accountability if animals are removed from the Animal Center. Misha Goodman feels that whichever institution or individual Coralville transfers its animals to, the institution or individual should be held to the same standards as the Animal Center, i.e. licensed under the state of Iowa, required to follow the same regulations the Animal Center must follow, and subject to inspections. Task Force members agreed with Misha Goodman, both for the sake of the welfare of the animals as well as to reassure our Iowa City constituency concerning the transfers. 2 Recommendations to City Council: Task Force Member Comment: Staff Comment: Citizen Comment: 8:15 p.m. meeting adjourned. 3 11-21-07 IP11 MINUTES PUBLIC ART ADVISORY COMMITTEE THURSDAY, NOVEMBER 1, 2007 MEETING ROOM A, ROBERT A. LEE RECREATION CENTER PRELIMINARY Members Present: Emily Carter-Walsh, Mark Seabold, DaLayne Williamson, Patrick Carney, Terry Trueblood, Rick Fosse Members Absent: Emily Martin Staff Present: Marcia Klingaman, Jeff Davidson Public Present: Drew Bullman, Kelly Schaffner CALL TO ORDER Seabold called the meeting to order at 3:05 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA None. CONSIDERATION OF THE MINUTES OF THE SEPTEMBER 6,2007 MEETING MOTION: Trueblood moved to approve the minutes with minor corrections; Carney seconded. The motion passed 8:0. REVIEW OF PROPOSAL BY BAO PHAM - REPRESENTED BY THE CHAIT GALLERIES DOWNTOWN Bao Pham submitted a letter addressing the issues brought up in the Request for Proposals letter of September 20, 2007. Included in this packet was an example of an image fused to brushed satin aluminum. Marcia presented the electronic version of the proposal. Carter-Walsh noted that "Bubbles" is a two-dimensional graphic on sheet aluminum. Seabold remembered that this piece was considered to be too sparse to fill the pool wall. He noted that covering more of the wall was one of the requests made of the artists. It was agreed that the color of the piece was appropriate and that this is a piece that can be enjoyed without glasses, which is important for swimmers. Trueblood questioned if the electronic representation was proportional to what would actually be mounted to the wall. Bao's letter indicates that a total of nine panels would be mounted, which is not consistent with the electronic representation. The electronic image shows panels that are divided. It is unclear if each division represents an individual panel. The committee would like the artist to define what he considers a panel as well as confirmation of total square footage of the piece. The committee questioned whether additional panels would provide adequate ventilation for the heating component behind the pool wall. Marcia indicated that she was under that impression as all of the artists had been notified of that requirement. Iowa City Public Art Advisory Committee Minutes November 1, 2007 Page 2 Carter-Walsh asked how the piece would be mounted. Seabold indicated that a common mounting style is a channel mounted to the wall with the aluminum pieces hanging from that channel. This mounting would make it easier to take them off than if they were bolted individually to the wall. Trueblood asked the committee if anyone has seen the artwork by Bao Pham that is on display at Clapp Recital Hall. No one has seen it. Seabold commented that he had hoped the submittal would be more refined at this point as they were offered a chance to revise as well as an honorarium. Unfortunately, the proposal has not been updated. The committee also noted that they would like to see the artist present the proposal in person. At this point the artist didn't indicate whether or not he would be coming for the December meeting. The artist is represented by Chait Galleries, who will also be fabricating the entire piece as well as installing it. Bao Pham is just the photographer. Fosse noted that he had missed a couple of the previous meetings and wanted clarification about where the artist was in the process. Seabold indicated that Bao Pham had been short-listed to present their proposal in a more complete form. Marcia clarified that the original request was to respond to the artist's qualifications. Subsequent requests asked more specifically for a proposal. They had submitted what they thought was more of a proposal during the first round and the committee decided to include them. They decided not to expand on their proposal any further. Carter-Walsh noted that from a maintenance standpoint the proposal looked pretty good. Trueblood noted that he was concerned about comments in the letter regarding sunlight. The pool wall receives a significant amount of sunlight from the southern exposure. Seabold would also like to be sure that the piece would be able to withstand high humidity. The committee would like to know more about the sunlight, the definition of a panel, and total square footage of the piece. Marcia will request that the artist provide this information for the next meeting. UPDATE REGARDING IOWA SCULPTOR'S SHOWCASE AND PENINSULA PARK SCULPTOR'S SHOWCASE There were no responses for either showcase. Marcia has spoken to Marc Neucollins about his piece, "Blade", on the Peninsula Showcase and he is happy to keep it there until he sells it or until a replacement has been found. Marc is also now interested in submitting a proposal for the downtown showcase now that he is no longer a student. Marcia plans to send out the calls soon. Brandy has been updating the artist database. The committee has decided that this will be the last chance in terms of temporary displays. If it is not successful they will evaluate whether or not they should continue to do temporary or place permanent pieces on showcase. Carter-Walsh noted that the temporary displays are particularly nice for out-of-town visitors. She asked what had become of Gene's piece. Marcia indicated that the artist noticed that it had been tampered with and has decided to pull it before football season. ALAN WEINSTEIN'S UNOFFICIAL POOL WALL PROPOSAL Alan submitted an example of his piece on poster board measuring 10-ft long. He did not get chosen for the short list; however, he decided to take on this proposal as a personal challenge. Alan said to Marcia th.at this piece took him into a whole new realm and he felt compelled to present this piece. There are two different variations: one more Iowa City Public Art Advisory Committee Minutes November 1, 2007 Page 3 complex and one simpler. The final product will be weather-proof industrial plastic. The final color can be whatever the committee wants it to be. Alan has not been notified about the heating tubes issue. The piece doesn't look as though it would negatively affect the ventilation. The committee was impressed with the interpretation and the look of the piece. Alan has not offered any indication of cost at this time. POETRY IN PUBLIC Poetry in Public is sponsored by the Public Art Committee; it is in the sixth year. This year we are hoping to add another component - a local artist to teach some classes at the recreation center. Right now they are in negotiation with Dave Maurice, Dr. ABC. He has submitted poetry in the past and has also taught classes. Promotion will be done for him as well as the project in general. The project started as a way to get poetry into the public. The general public is solicited for participation (adults and children). The poems are displayed in the kiosks, at the two recreation centers, as well as in the busses. We work with the school district to get the kids involved. Language Arts teachers have been very supportive. The submission deadline is February 1 st. WASHINGTON HILLS NEIGHBORHOOD ASSOCIATION Washington Hills Neighborhood Association submitted a draft proposal for a neighborhood art project. They may present this to the Public Art Committee in January. The idea is to work with first and second grade students at the neighborhood schools to come up with sketches that could be constructed into play structures. Marcia did explain to the neighborhood that play structures will require oversight by the city in terms of safety requirements and liability. There are no cost estimates or budget at this time. Terry asked if there were plans to incorporate these structures into an existing neighborhood park. Marcia indicated that Pheasant Hill is the only park within that neighborhood. SAND LAKE PARK CONCEPT PLAN Terry Trueblood provided an update on Sand Lake Park. A concept plan has been developed with cost estimates. A grant was prepared and ready to go out for a Community Tourism Grant; however, one of the board members of Vision Iowa indicated that an unlisted requirement to the grant is to first obtain cash contributions from the County and the private sector. They also like to see a public art element incorporated into these grant applications. A public art element may be requested on behalf of the Parks and Recreation Division at a future time. SCHEDULE FOR DECEMBER MEETING December 6th meeting will be held at 2:00 p.m. to allow enough time for the artist's personal presentations. If the committee decides to make a decision at that meeting, they'll need time for discussion. A 5:00 p.m. ending time is more practical than 4:30 p.m. Fosse noted that he would have to leave at 4:00 p.m. due to a prior obligation. The meeting will be held in Meeting Room A at the Robert A. Lee Recreation Center. COMMITTEE TIME/UPDATES Iowa City Public Art Advisory Committee Minutes November 1, 2007 Page 4 None. ADJOURNMENT Fosse moved to adjourn; Carter-Walsh seconded. Meeting adjourned at 3:40 pm. Next meeting December 6,2007. Minutes submitted by Brandy Howe Iowa City Public Art Advisory Committee Minutes November 1, 2007 Page 5 Public Art Advisory Committee Attendance Record 2007 Term Name Expires 2/1 4/5 5/3 6/28 8/2 9/6 11/1 Emily Carter Walsh 01/01/08 X OlE X X X OlE X DaLayne Williamson 01/01/09 X X OlE X X X X Emily Martin 01/01/08 OlE X X X X X OlE Mark Seabold 01/01/10 X OlE X X X X X Patrick Carney 01/01/09 -- -- -- -- X X X X X Rick Fosse OlE X OlE X O\E X X Terry Trueblood X X X OlE * X X X Key: X = Present o = Absent OlE = Absent/Excused represented Terry Trueblood Moran Mike * mJ MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 13, 2007 CITY HALL, LOBBY CONFERENCE ROOM, 1 :30 P.M. PRELIMINARY Members Present: Regenia Bailey, Connie Champion, Bob Elliott Staff Present: Wendy Ford, Jeff Davidson Others Present: Irvin Bob, Greg Hennigan, Nancy Quellhorst, Craig Gustaveson, Gigi Wood, andy by phone, Mary Bosch, Eleanor Matthews, and Melissa Mailloux CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 1 :30 P.M. APPROVAL OF MINUTES OF OCTOBER 9 AND OCTOBER 25. 2007 Elliott moved and Champion seconded the minutes of both the October 9 and October 25,2007, meetings be approved as presented. Motion carried 3-0. DOWNTOWN MARKET NICHE ANALYSIS DRAFT REPORT (Marketek via conference call Mary Bosch and Eleanor Matthews of Marketek joined the Committee via phone conference. Mary stated that she would first like to cover some highlights, and then take questions from those present. Marketek's charge was determining how downtown Iowa City could improve its economic health, and what the potential opportunities are within a variety of sectors, but mainly focusing on retail, residential, office, and lodging. They also took a look at how Iowa City could promote the downtown, and ways to show the creative class all that Iowa City has going for it. Bosch noted that one thing that stands out about Iowa City's downtown is that it is lively 24 hours a day, 7 days a week. She also noted that Iowa City is one of the few cities that still has a functional pedestrian mall, and that the city looks healthy due to low vacancies in retail. The challenges, then, for Marketek are to explain how can they help Iowa City optimize this mix, and sustain the growth that has been occurring in Iowa City. Bosch noted too, that the role of downtown has changed over the past ten to fifteen years, and that people need to understand that they cannot go back to the way things were previously. In Chapter one, Bosch briefly touched on the customer base of downtown Iowa City, noting the high student population. She talked about the types of businesses that bring in "convenience" purchases, such as hardware and grocery. Bosch continued her presentation, stating that they also were able to get feedback from community members about their reflections on downtown Iowa City, what they wanted, what they would support in terms of retails, goods and services, and entertainment. They received over one thousand responses to their survey. She stated that they also conducted some focus groups, and that the town hall meeting was well received. Bosch noted that the Iowa City residents are very engaged in their community. Bosch next summarized the process, stating that they look first at current situation - a snapshot based on existing retail sales compared to potential retail sales from the residential population of how much money is being spent by folks locally, what's being spent elsewhere and what the Council Economic Development Committee November 13, 2007 Page 2 gap is. Some examples of gaps in retail were home furnishing stores, and food and beverage stores. Bosch further explained the methodology that Marketek used in gaining the information for this report. She stated that they looked at potential demand from visitors, in addition to residents. Bosch then stated that on page 99 is a projection of the downtown retail demand over the next ten-year period, by key retail categories. She stated this evaluates demand from residents and visitors, and projected demand Iowa City could capture. She briefly went through some of the square footages that are a part of this, and noted that this includes the new mixed use projects coming online. The discussion next turned to housing with Eleanor Matthews presenting to the Committee. She stated that one thing that stood out was limits in non-student housing, both rental and sales. Matthews added that one comment they heard a lot was, 'We need more housing, particularly non-student housing downtown.' She stated that this was due to there being young professionals living in Iowa City. Matthews also covered the Iowa City rentals in the area, and stated that it is a healthy market, and that there is more room for higher end, non-student housing. In the 'for sale' market, Matthews stated that they did not have much to work with, other than Plaza Towers and some projects in Coralville. She further explained how Marketek looked at a 20-mile radius from the center of Iowa City when gathering their information. She spoke about the upcoming Hieronymus Square project and the projected cost of housing in the downtown area. Matthews stated that from their market research and analysis, they feel that the opening downtown price points for condos should be from $150,000 to $230,000, which, she stated, is lower than Plaza Towers. She noted that Plaza Towers sold units for much higher, but that many of these sold to investors. Matthews also noted that the Iowa City Realtors were extremely helpful in providing information for their report. . Matthews next covered office space. She noted that the Technology Corridor is projected to increase by 3,500 jobs annually, which will result in demand for more office space. One of the comments the team heard during their research was a need for larger space, and how hard it is to find in the downtown area. Smaller office spaces that are for sale are also scarce. Matthews noted that they spoke with the Iowa City Area Development Group during their research, as well, and that this provided them with good information. Matthews then turned to lodging, noting that things are very positive in this area - occupancies are up, rates are up, etc. She noted that the information they gleaned was primarily anecdotal and and that they spoke to business owners and hotel/motel operators to get most of their information. Of particular not, was that meeting and exhibit space is limited in Iowa City. The presentation then turned back to Bosch, who spoke about towns like Austin, Texas, who is attempting to attract and retain the creative class; and also towns like Portland, Oregon and Memphis, Tennessee, who are both in various stages of their recruitment toward the same. Bosch noted that the move around the country is to attract and retain this "creative class" of workers who are often occupied in creative types of positions. She noted that arts, culture, and entertainment are important to this demographic, as well. Bosch noted that in Austin, Texas, one of the main focuses has been arts and culture, and definitely their downtown. She stated that Austin is the "poster child" for economic development of their downtown. In Portland, Bosch stated that they have a full-time employee that focuses on the whole economic development issue and keeping that in focus. Bosch next talked about Council Economic Development Committee November 13, 2007 Page 3 communities promoting themselves, noting that Memphis had a large event where they brought in people from other states to help them think outside of the box on how they could bring people to their town. She then spoke about Iowa City's strengths and how marketing these can get the message out to people. As far as implementation recommendations, Bosch noted that they are feeling very positive about the opportunities that Iowa City has, about the future for strengthening the downtown economic base, business mix, the addition of housing, and some of the other issues - office and lodging. After a lot of thought on what would it take for Iowa City to move forward to capitalize on this success, Bosch noted that the last chapter of their report outlines a plan. One of the first things is organization. There needs to be a cohesive, focused, and well supported management team and staff to begin to work on the business mix for downtown Iowa City, and all of the issues that go along with that. She noted that Iowa City is definitely under-promoted, and that they need to get "better known" in order to bring in the businesses that are desired. Bosch reiterated that a partnership needs to be formed of organizations and stakeholders, both public and private, with strong involvement that will focus on development. She noted that Iowa City's downtown needs to run more as a business would, with full time management involved. Marketek has outlined a plan for the City, that includes everything from business retention to business recruitment to business expansion, property development, and finding creative ways to influence a business mix. Bosch ended the presentation by stating that they need to hear from those in attendance now, to which Bailey asked if anyone had any questions or comments for Bosch or Matthews. Elliott brought up the topic of young professionals and attracting them to the area. He asked if she were referring to young professionals that are single, and not married or partnered, as safety and schools were not mentioned in Marketek's report. Bosch noted that typically "young professionals" means early 20's to early 30's, and not married. Quelhorst asked Bosch to speak more to the business mix, and asked if this refers to a mix of things like toy stores and apparel, or families with young children type of services. Bosch stated that their findings were based on what they heard from the community, wanting more "every day" type stores. The mix is to cluster businesses together that would draw in those residents in the immediate area. Champion then stated that she was somewhat alarmed by the list of potential businesses included in the report, as they are chain stores, and not specialty type stores, which Iowa City is known for. Bosch noted that this is not a comprehensive list, but simply the results of a query she made on national chains that are considering expansions or new locations in areas such as Iowa City's downtown. Davidson then asked for a clarification on the clustering concept, stating that he was somewhat confused by this. He asked if this issue is really that critical, as Iowa City tends to have "clusters" in the downtown area. Bailey noted that she has a question along the same line. She asked if clustering were more successful in a small downtown. Bosch noted that the current clusters need to be cross- promoted. She noted that on the Ped Mall, for example, they need more retail. Otherwise, you are left with mainly single-destination businesses. Gustaveson illustrated how the concept works by telling about how his business improved once they left the Ped Mall with no other men's store, and moved to Clinton Street right next to another men's store. Champion noted that she totally agrees with this. She spoke about the women's stores downtown and how they have helped each other survive. Elliott next brought up how expensive downtown living typically is. He asked for more information on this. Bosch noted that cities have been pushing urban renewal with the basis of Council Economic Development Committee November 13, 2007 Page 4 making sure the housing in downtown areas meets all levels of income, and not just high end. Mailloux noted that they looked in the immediate downtown area. Bailey noted that it would be helpful to know the boundaries they used, as the City is also expecting a housing study soon. Mailloux stated that a footnote in this section will further explain this data. Elliott then asked about the Ped Mall, asking if they have any suggestions on how to keep it viable without adding more restaurants and bars. Bosch stated that this can be part of the prime retail core, and that they need to have more active retailers. She noted that they looked specifically at certain areas of the Ped Mall, and it is noted that they do not have any active retailers in these areas. It was noted that some aesthetic issues were noted, due to some areas seeming more dark in the Ped Mall. Bosch again noted business mix, the physical environment, and perceptions around safety - such as more active uses, more residential, brighter environment - can contribute to a better downtown. Bailey stated that the business mix issue is definitely a complex one. She asked how other cities have approached this issue. Bosch stated that the recommended partnership would help keep the "vision" for the City - what does it take to be successful, what is the expectation or goal that's trying to be reached - in order to make changes. Gustaveson then talked to Bosch about the retail issue. He talked of larger stores, national chains, and how they will never come to Iowa City due to so many regulations, such as parking, square footage, etc. Bosch stated that she feels Iowa City could entice these national chains to the area. The discussion turned to how Iowa City does not really have stores that cater to students, and that there are 30,000 students in the downtown area - stores such as Gap or Old Navy. Gustaveson noted about housing, that a builder he knows has stated that to keep Chicago students from coming in and buying up the condos, the price has to stay high. He asked if Marketek's research indicates who would be buying these - young professionals or Chicago parents for their U of I students to live in. Matthews noted that the local market is what drives this as far as price, and what people are willing to pay. Quelhorst then spoke to the methodology being presented in this report, asking if they could cull out small parts and work on those. As an example, it was stated how many of these suggestions are dependent on each other - which are stand-alone type recommendations, and could they be done over a ten-year period. Bosch noted that the most important piece is professional management, and a group of people that are focused on nothing but enhancing the business base. Quelhorst brought the conversation back to who the members of this group should be. The conference call ended so the group could continue with the meeting. Bailey then spoke to what needs to be in the public presentation for this report. Gustaveson noted that three years ago they stated that a full-time person was needed to manage - just as is being suggested here. It was noted that many business owners downtown do not want to see any changes, and that for this to occur, there is going to need to be the right group leading this. Bailey noted that any other suggestions should go to Ford to further expedite this report. Ford noted that they need to have another meeting in about a week. Monday, November 19th at 8:00 A.M. was suggested. Davidson then spoke briefly about the Comprehensive Plan, as well as the District Plans for each area, such as the downtown. It was noted that the Plan, as well as this study, help to show what the needs are for both retail and residential in the downtown area, in an overall view. Council Economic Development Committee November 13, 2007 Page 5 STAFF TIME No report. COMMITTEE TIME No report. ADJOURNMENT Meeting adjourned at approximately 3:00 P.M. Committee Council Economic Development November 13, 2007 Page 6 Council Economic Development Committee ATTENDANCE RECORD 2007 TERM 1/23 2/9 2/20 2/27 3/6 3/12 4/6 4/12 5/29 5/31 6/21 7/10 7/24 9/13 10/1 10/9 10/25 11/13 NAME EXP. Regenia 01/02/08 X X X X X X X X X X X X X X X X X X Bailey Bob Elliott 01/02/08 X X X X X X X X X X X X X X X X X X Connie 01/02/08 X X X X X X X X X DIE X X X X X OlE X X Champion ~ MINUTES HISTORIC PRESERVATION COMMISSION WEDNESDAY, OCTOBER 24,2007 EMMA J. HARVAT HALL - CITY HALL Preliminary MEMBERS PRESENT: Esther Baker, William Downing, Pam Michaud, Jim Ponto, Ginalie Swaim, Tim Toomey, Alicia Trimble, Tim Weitzel MEMBERS ABSENT: Michael Brennan STAFF PRESENT: Sunil Terdalkar OTHERS PRESENT: Mary Bennett, Jackie Blank, Carl Klaus, Mike Haverkamp, Ken Slonneger, Marybeth Slonneger CALL TO ORDER: Chairperson Weitzel called the meeting to order at 6:00 p.m. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: There was none. ITEMS OF CONSIDERATION: Settinq a Public Hearinq to Desiqnate 935 E. Market Street as a Historic Landmark. Terdalkar said that tonight's special meeting is intended to evaluate preliminary eligibility of the house at 935 E. Market Street and to consider setting a public hearing to designate the property as a local historic landmark. He said at least seven days notice is required prior to a public hearing for considering landmark designations. Terdalkar said November 1st is the earliest day the Commission could hold a public meeting on the issue. He said that depending on the discussion and public input during the public hearing, the Commission could request the City Council to set a public hearing on November 5. Weitzel said the Commission has the letter that was sent to City Council and photos that accompany it. He said 935 E. Market Street is the Isaac Wetherby House and a demolition permit was taken out by the land owner. He said the land owner does not plan on saving the building, but is negotiating with Friends of Historic Preservation. Weitzel added that the waiting period for demolition has expired. Weitzel said the Commission hearing is necessary to for the application for a Historic Landmark to be considered by the Council. He said nothing can be done about staying the demolition until the item reaches City Council. Weitzel said that the Commission is determining tonight whether or not the Wetherby House should be granted a public hearing to be considered a registered historic landmark. Marybeth Slonneger, the applicant, said that she was accompanied by Carl Klaus, a retired professor and a co-representative in the Goosetown Neighborhood, Jackie Blank, Ken Slonneger, and Mike Haverkamp, President of Friends of Historic Preservation. She added that Mary Bennett from the State Historical Society of Iowa might be joining the meeting later. Marybeth Slonneger said the Wetherby House was sold on October 18, 1858 by Patrick Doyle and his wife Ann. She said Wetherby painted about 1,000 oil paintings and his works are displayed in museums in Boston, Des Moines, Davenport, and Iowa City. She said Wetherby was also a photographer and purchased a camera within two years of the camera becoming available. She said the State Historical Society has 1,450 glass plate negatives of his work. Slonneger said he took the first pictures of the Old Capitol dating back to 1854 when it was still the state capitol. She said the 935 E. Market Street house is the only house left in the United States with a direct connection to Wetherby. She said he lived there from the 1860 to around the 1900s. Historic Preservation Commission October 24, 2007 Page 2 Weitzel said tonight the Commission is only establishing merit to hear the significance of the property at a public hearing. Bennett said the Wetherby house qualifies for National Register status. She added that the property would continue to be eligible even if it is moved. Weitzel asked if it based on criterion B, significant persons. Bennett said it does meet criterion B because it is the only property left that is associated with Wetherby. Weitzel said that criterion B allows a property to become a landmark based on the person that lived there, not the historical architecture. Bennett reiterated the State Historical Society has found that the house qualifies on a preliminary basis. Weitzel said there has been no formal survey done on this house. Downing asked how long it has been known that 935 E. Market Street was Wetherby's property. Bennett said the State Historical Society has had records since the 1970s. Downing asked if the owner of the house has ever been approached about preservation or registry status. Slonneger said she approached the former owner of the house and didn't feel that she wanted to sell the house at the point. She said that she missed her chance to purchase it. Slonneger said the current owner bought the property on October 4th, 2007. Downing asked what the current owner intends to do with the property at 935 E. Market. Slonneger said the property will be a four unit duplex as a rental property. Downing said it is zoned for single family in an RNS-12 zone. Michaud asked if it was currently a duplex. Weitzel said it is not a duplex. Terdalkar said duplex structures are allowed in RNS-12 zones. Michaud asked if the Commission should talk about what has been changed on the house. Weitzel said the Commission should determine if a property deserves a public hearing. Michaud asked if the front door has been relocated. Slonneger said pictures suggest that the entry was moved to the side of the house. Weitzel said there has been a lot of community support for moving the house. He said date needs to be determined when to move it. MOTION: Swaim moved to set a public hearing to establish 935 E. Market as a local landmark. Downing seconded the motion. Ponto said he thinks the house is potentially eligible and would like to have a public hearing. Baker said there is no reason not to have a hearing. Motion carried on a vote of 7 -0. Terdalkar suggested that the date for the public hearing should be part of the motion. MOTION: Swaim moved to amend the motion to have the hearing on November 1st at 6:00 p.m. Downing seconded the motion. Motion carried on a vote of 7-0. ADJOURNMENT: The meeting was adjourned at 6:23 p.m. Minutes submitted by Doug Ongie s/pcd/mins/hpcl2007/10-24-07.doc Historic Preservation Commission Attendance Record 2007 Term Name Expires 2/08 3/08 4/12 5/17 5/31 6/12 6/28 7/12 8/9 9/17 10/11 10/24 Baker 3/29/09 X OlE X X X X X X X X X X Brennan 3/29/08 X X X OlE X OlE 0 X X X X OlE Carlson 3/29/07 X X -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Downing 3/29/10 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- X X Gunn 3/29/07 X OlE -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- McCormally 3/29/08 OlE OlE X OlE OlE OlE OlE OlE OlE -- -- -- -- -- -- Michaud 3/29/09 X X OlE X X OlE X X X X X X Ponto 3/29/07 X X X X OlE X X X X X X X Swaim 3/29/09 X X X OlE X X X X OlE X X X Trimble 3/29/10 -- -- -- -- X X X X X X X OlE OlE X Toomey 3/29/09 X X X X X X X OlE X X X X Weitzel 3/29/08 X OlE X X X X X X X X X X Key: X = Present o = Absent OlE = Absent/Excused NM = No Meeting = Not a Member ~ MINUTES Iowa City Airport Commission November 8, 2007 Iowa City Airport Terminal- 5:45 PM DRAFT Members Present: Howard Horan, Chair; Randy Hartwig; Janelle Rettig; John Staley Members Absent: Greg Farris Staff Present: Sue Dulek, Michael Tharp Others Present: Jim Meade, Terry Edmonds, Jay Honeck, David Hughes, Herrel Timmons, John Yoemans, Joe Merschman, Turk Regennitter, Skip Long, Peggy Slaughter DETERMINE QUORUM: The meeting was called to order at 5:47 P.M. by Horan. RECOMMENDATIONS TO COUNCIL: None APPROVAL OF MINUTES FROM THE OCTOBER 11, 2007 MEETING: Horan asked Members if they had any changes, corrections for the minutes. Rettig moved to accept the October 11,2007 minutes as submitted; seconded by Staley. Motion carried 4-0, Farris Absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: a. Aviation Commerce Park - Peggy Slaughter addressed the Members, stating that she cannot give any names, but that there is a lot of activity currently. She noted that there is a Letter of Intent on Lot 6, and that she has met with the City regarding this. She stated that the interested party is still asking for incentives. She further stated that Harry Wolfe is working with this party to try and get a formal agreement going. Slaughter then noted that they also had a meeting regarding Lots 17, 16, 15, and 14, in which a couple businesses would possibly be building together. She gave the Members a brief overview of the two meetings concerning these four lots. Slaughter continued, stating that the group interested in Lots 1 through 4 that requested a meeting with the City some time ago has been somewhat in limbo as the lead person just gave birth; however, they are planning to start meeting again regarding these lots. 1 Slaughter noted that she has two builders that have asked for follow-up information, and also a local contractor has been in touch, looking for ten acres. Rettig asked for some clarification on the outlots, to which Dulek responded, stating that the Commission could decide to lease them for something such as leased storage space. Slaughter then asked the Commission if they knew when the south lots would be available, as she wants to keep the party that is seeking ten acres interested in the Airport Commerce Park. Horan stated that it could be around eighteen months to two years before a decision is reached on the south lots, and Rettig followed up that she is not interested in the south lots being developed yet either. The discussion turned to Yeomans, the farm manager for the Airport land, stating that currently they lease this land to Williams as long as they mow and hay it. He asked the Commission if they would like to permanently terminate agricultural activities on this land and have the City maintain it instead, which he further noted would eliminate any agricultural leases. Rettig noted that they do this at their own risk, and if land sells, that ends the agreement anyway. She further stated that it saves the Airport from having to mow. Members noted that after the first of the year they should have a better idea on where the development is headed. Slaughter then wrapped up her presentation, stating that the amount of development in the area is a good sign. b. Farmers National Company- Merschman Seeds - Yeomans noted that they were still awaiting Joe Merschman's arrival. Members decided to go on to Item c. c. Hangar #56 - Terry Edmonds - Hartwig excused himself due to conflict of interest. Edmonds addressed the Members, stating that he and Tharp have discussed the options available for the extra space in Hangar 56. He noted that they were not able to come up with anything very practical, but that they did discover that Jet Air would like to sublease the hangar during the winter months. Edmonds stated that this works for him as he does not fly much during the winter. The Members then discussed the proposal in front of them. Horan stated that it sounded like a good arrangement, as did Rettig. Rettig asked for some clarification of the agreement that they were presented with, and Tharp responded. Staley moved to approve the proposal as outlined by Terry Edmonds; seconded by Rettig. Motion carried 3-0; Hartwig recused himself due to conflict of interest, Farris Absent. d. National Guard- 1. Consider a Resolution Setting a Public Hearing for a 5- Y ear Lease with the Army Reserve - Tharp noted, first of all, that there is a typo - it should be the Army Reserve, not the National Guard. He stated that this lease is up, and the Army Reserves would like to sign another five-year lease. Tharp stated that he gave them a price that included a CIP inflator and they tentatively accepted this, 2 pending the public hearing. Hartwig moved to consider Resolution A07-30, setting a public hearing for December 13, 2007, regarding a 5-year lease with the Army Reserves; seconded by Staley. Motion carried 4-0, Farris Absent. b. Farmers National Company- Merschman Seeds - Yeomans addressed the Members, stating that he needs to get some agreement on leasing the remaining farm ground at the Airport. He noted that at the last meeting they had an in-depth presentation from Merschman's about creating a test plot site and he reiterated how interested Merschman Seeds is in the Airport's farm ground. He asked if Members had any questions, to which Horan asked what would need to happen after two or three seasons that would make him feel this was not a good idea. Merschman noted that they already do this type of activity and that moving it to the Airport makes it a unique location. He also noted that moving it to Iowa City is also a plus for them. Regennitter joined Merschman in explaining to the Members why they would like to use the farm ground at the Airport, and how they can work together. The conversation continued, with Hartwig noting that his big concern is that they don't yet know what they want to do in the south area, and he also noted the wildlife mitigation issues for the Airport. Basically, he stated, if they could afford to not have agricultural products on the field, they probably would not, just from the standpoint of trying to alleviate wildlife hazards from the runways. Staley asked if they would be content with a shorter lease, such as a 3- or 5-year lease. Merschman stated that they could work with that, that a short-term lease gives them the opportunity to see if it will work for them, as well. Rettig asked for some clarification on this agricultural proposal. She asked if the seed was genetically modified, to which Merschman responded that 80 to 85% of all seed are modified now in the U.S. Rettig stated that there are political ramifications locally to allow something like this to occur on public land at the Airport. She noted that she is not comfortable taking on this type of situation. Merschman explained that in order to do what they want to do, they need the hard surface/pavement. Staley noted that this project would not be a change in what is already being done with the farm ground. Yeomans noted that he is trying to get more money for the Airport, with fewer acres, by proposing this project. Regennitter addressed the genetically modified seed issue somewhat, noting that most all of the seeds are modified in this day and age. Rettig noted again that this is a political issue in Iowa City, and that she does not care to get involved in something like this. She noted that she is also concerned about safety issues with something like this going on at the Airport, with so many people corning and going. Hartwig asked what the 3 timeline is to get back with Merschman, and they noted that the sooner the better, so they could arrange things on their end, as well. Horan then asked for some clarification on the genetically modified seeds, to which Merschman and Regennitter responded briefly. They noted that European companies are already using these seeds aggressively. Merschman then talked to the Members about the "gene shuffling" process and the tolerance that is produced. Rettig noted, again, that they are an Airport - not a farm. She noted that people are against these modified foods, and she feels that this could be a liability for the Airport. She noted that she was a little taken off guard last month when this was brought up, and that she is not comfortable with the whole issue. Staley noted that he feels differently - that he feels this is a great thing, and that it fits with one of the missions of the University. He asked what kind of terms they would be looking at if they did go ahead with something like this. Yeomans noted that the total for this year will be a little more than $16,000, and that the proposal he has discussed with Regennitter was for $25,000. Dulek noted that as far as terms, if they want three or more years, they would need to stop discussion and have a public hearing on it. If they can come to an agreement tonight on terms, it would have to be for under three years. Merschman noted that they would help fund the entryway that they would need to add. Timmons stated that he was the Airport Manager in Galesburg for 20-some years, and that a large part of their budget came from the farming operations. He noted that there is a research farm close to the Airport, and that Monsanto is one of their biggest customers because of this. He stated that he feels it would be prudent to look at using their assets (farm ground) as best they can. The conversation turned to Staley noting what they would be looking at in terms of revenue and economic impact for the area. It was noted that this would be around $80,000 the first year alone. Rettig turned the discussion to the usage at the south end of the Airport, and the various liability issues they could encounter. Merschman and Regennitter confirmed that they would also be very concerned about safety concerns and liability issues. Regennitter reiterated that they would only want to proceed if everyone is one the same page - that they would like to pursue a long-term plan, but only if all concerns are taken care of. Tharp noted that he feels that until the study of the south area is completed, it may be next year before they can address this with Regennitter and Merschman Seeds. Staley noted that he believes they should take advantage of whatever they can for this area, at least until they have firm decisions on what they want to do with the land. Horan said a two-year proposal would be agreeable with him, to which Staley agreed. Horan suggested they put their proposal together and distribute it to the Members prior to next months' meeting. Yeomans asked if they could negotiate terms now, to which Rettig stated she would have to have the details first. Dulek noted that there are several issues, 4 including the culvert, and they should come up with a proposal and offer a contract. Staley moved to consider a proposal from Merschman Seeds, and that the Commission meets as soon as this proposal is ready; seconded by Hartwig. Horan then suggested that as they are working on their proposal, that they contact any of the Members as needed, so they could get this process going. Rettig stated that she feels they should not proceed with this, and that she is unwilling to defend GMO. Regennitter stated that perhaps they should withdraw their proposal and find someone who wants to work with them. Horan and others called for a vote. Motion carried 3-1; Rettig in the negative, Farris Absent. Regennitter asked if they wanted to pursue this, and Yeomans stated that the lease is open and he won't be doing anything right away. Merschman noted that the local farmer is growing GMO seeds currently - that this is no different. Staley stated that he is glad to see these developments happening with farming. e. Hangar Expansion - Building H 11. Consider a Resolution Approving Engineering Services Contract for Expansion of Hangar and Office Space - Tharp noted that they had anticipated having an engineering agreement to approve, but that it is not ready. He further stated that they would need to defer this to next month's meeting. Staley moved to defer Item e, consider a resolution approving engineering services contract for expansion of hangar and office space to the December 13, 2007 meeting; seconded by Hartwig. Motion carried 4-0, Farris Absent. f. F AAlIDOT Projects - Earth Tech - David Hughes iii. Runway 7/25 - Hughes noted that they have had a very busy month with construction. They are about 90% done with paving, with just a small piece between the old and new runways that they need to complete. They are about 80% done with grade on that end of the project, with paving most likely being done in the spring. He responded to Members' questions concerning this small portion. Hughes continued, stating that electricals are now in and they will be starting on runway closures next week on 7-25. This involves moving the runway lights. He then responded to Members' questions regarding how the electrical fixtures will be installed. Rettig then asked Hughes for clarification on the daytime closing of the runway. Hughes explained how this would work, and that it covers from 7:00 A.M. until approximately 4:30 or 5:00 P.M. This could take up to two weeks to complete this part of the project. Rettig then stated that for Tharp's monthly newsletter, she would like to see a "factoid" about how many loads of concrete it took to pave the runway. Hughes stated that he could get information like this for Rettig. 5 IV. South Aviation Development Study - Hughes stated that they did get comments back finally on the Willow Creek study. They will now finalize their report on the south area of the Airport, and will get this information out as soon as they can. v. South Taxilane Rehab - Hughes stated that they are working on the drainage problem and met with Ron Knoche earlier today. Vi. Jet A Fuel System / AvGas Upgrade - Hughes stated that the contractor has ordered his materials, and is awaiting those. He is also working with Jet Air on credit card information and that type of thing, before he can proceed. There is no definite delivery date on this. Vll. Terminal Apron Rehab - Hughes said that as of today, this is 90+% complete. He said there's some cleanup to do and some seeding, and a small amount of paving yet to do. Vlll. Obstruction Mitigation - MidAmerican has agreed to this, and Hughes stated that they have been working with Dulek on finishing up the easement issues. Once this is completed, he stated that they would then move forward. Hartwig asked when they expect this to be completed, and Dulek responded. IX. United Hangar - Hughes stated that they are in the process of finalizing specs and hope to have something ready for review before Thanksgiving. Rettig asked if they would be recycling the steel when they bring this hangar down, and Hughes stated that it is entirely up to the contractor what he wants to do with it. Members asked miscellaneous questions of Hughes on some of the above proj ects, to which he responded. x. Runway 7 -25 Overlay - Hughes noted that they have prepared this contract for the next phase of the project. He briefly explained what this contract entails. Hartwig asked when this has to be in to the FAA, and Tharp stated that they wanted something by mid- month, but after talking to the current Grant Administrator, he is now aware of where the Airport is with this and said it should not be a problem. Rettig asked for clarification on having the 7-25 runway project and the 12-30 crack sealing project being rolled into one. This was explained by Tharp and others, who stated that they are trying to get some pavement improvements done yet this winter. Tharp then explained to Members that they need to either approve this tonight, which he recommends, and let the Chair sign it when it is ready, or they will need to defer. i. Consider a Resolution Approving Engineering Services Contract for Runway 7-25 Overlay and 12-30 Crack Sealing Project - Staley moved to Consider Resolution A07-31, approving engineering services contract for Runway 7-25 Overlay and 12-30 Crack Sealing Project; seconded by Hartwig. Motion carried 3-1; Rettig in the negative, Farris Absent. 6 g. Airport "Operations": Strategic Plan-Implementation; Budget; and Airport Management - Horan asked if members had any questions about these. Rettig asked about the $14100 deposit and Tharp responded that it was the receipt from the easement that Larson had been seeking. Rettig asked about the plans for that money, and related during budget discussions this money was going to be used to accelerate some driveway maintenance. Tharp confirmed that is still the plan. Rettig asked about the credit to the bike racks noting that the bike racks cost $900 instead of$2100. Tharp commented that he would have mentioned that at the last meeting, but didn't have that information. Rettig asked about $1300 that was in the Minor Office Equipment / Furniture line. Tharp responded that this was the conference room chairs and had not been coded correctly, and he would talk to accounting to fix it. Tharp commented that he and Horan had met with the City Manager and presented the FY2009. Tharp said that so far the budget is being presented as the airport request. Tharp stated they had also discussed the Capital Improvement projects with the department head's and city manager and that the proposed hangar they will be seeking funds from the state for is set to be included in the plans. xi. Consider a Resolution Authorizing the Operations Specialist and Chairperson to Make Purchases and Sign Contracts - Horan began the discussion by stating that he believes the existing Resolution A06-21 should remain in effect for now. Staley noted that the proposal seems realistic to him, that Tharp would have the same level of authorization as the A06-21 Resolution, as would the Chair, to make certain decisions on items. Horan and Rettig asked some procedural questions ofDulek, to which she responded. Rettig noted again that she does not see a need to change this right now, and that ifthere is an emergency, the Members should all be contacted. Tharp noted that he usually speaks to the Chair at least weekly, if not daily at times, so he feels the communication is there, and that by doing this it would make the daily operations easier for him. Members asked questions of Tharp, trying to get a better understanding of whether or not they need to consider this resolution. Members discussed the chances of getting the 3 members necessary for quorum together on short notice. Members felt that if 3 couldn't be there that a conference call could be made. Dulek stated that a member could participate by speaker phone but the meeting cannot occur by conference call. Members asked Tharp if they could do that at the airport. Tharp responded that they would have to move to one of the offices for a speaker phone, but that they could do that from the airport. Hartwig moved to defer Item g, consider a resolution authorizing Operations Specialist and Chairperson to make purchases and sign contracts to the December 13, 2007 7 meeting; seconded by Staley. Motion carried 4-0, Farris Absent. h. FBO Staff Report - Timmons stated that they are busy getting ready for winter. Last week they purchased a snowplow truck, which will help to clean their area faster. They are now a two-thirds Iowa, one-third Illinois company, having just taken over the Burlington Airport. He noted that on November 15 they are having an FAA safety seminar in the hangar. There could be upwards of 100 people. The FAA will be here to participate, and they usually get a good turnout. He invited everyone to attend, if they would like. Tharp noted that it runs from 7:00 to 9:00. He noted that they hired two more mechanics recently, and they now exceed a half million dollars a year on their payroll in Iowa City. They have two jets based here currently. Timmons noted, again, how important the farming was to the Airport in Ga1esburg, and how it could be of benefit here, as well. A brief discussion ensued about Jet Air doing so well, and Timmons stated that you have to be willing to be there all the time and you have to think positively. Rettig noted that she had asked Woolford about their sale of planes and how this affects the tax issue. Timmons stated that he has not figured it out yet, as Iowa has a different tax arrangement than Illinois. Rettig noted that she would like to have the information in order to show how this is contributing to the overall tax base for the economy. Timmons noted that they recently sold two airplanes to the State Police. He also noted that Jet Air is doing most of the major maintenance, and some of the routine maintenance, for the Civil Air Patrol for the entire Midwestern area. 1. Subcommittees' Reports - Tharp noted that the viewing area has been started. They have six support beams up and are waiting for the rest of the structure to amve. J. Commission Members' Reports - Horan stated that he has taken a lot of pictures of the construction. Rettig noted that JCCOG met to prioritize trails recently, and that she heard that they were told that no one would use a trail out by the Airport. She believes they need to continue pushing for a sidewalk by the Airport. Hartwig congratulated the new City Council Members who won in this week's election. He also noted that in regards to the booklet for hangars, J an Nash sent him a letter in the summer about some thoughts on this. He suggested they meet with her to see what she has in mind. Staley asked if anyone had seen the Corridor Business General, and he noted an editorial on making the corridor better. One issue was to change the name of the Eastern Iowa Airport, and another is to create a regional airport authority. k. Staff Report - Tharp noted that he has drafts of the Forecast Study, as requested at the last meeting. He also gave the Members a draft of the 2007 Annual Report, and asked to get feedback by the next meeting from Members, stating that he would like to get this in by the end of the year. 8 SET NEXT REGULAR MEETING FOR: December 13,2007 at 5:45 P.M. ADJOURN: Meeting adjourned at 8:51 P.M. 9 Airport Commission ATTENDANCE RECORD YEAR 2007 (Meeting Date) TERM 1/11 2/8 3/8 3/28 4/12 5/10 5/15 6/7 6/8 6/28 7/9 7/19 NAME EXP. Randy Hartwig 3/1/09 X X X X X X 0 X X X X X Greg Farris 3/1/13 OlE X X OlE X .X X X OlE X X X John Staley 3/1/1 0 X X X X X X 0 X OlE OlE X X Howard Horan 3/1/08 X X X X X X X X X X X X Janelle Rettig 3/1/12 X X X X X X X X X X OlE OlE TERM 8/1 8/9 8/13 9/5 9/13 9/24 10/11 11/8 12/13 NAME EXP. Randy Hartwig 3/1/09 X X X X X X X X Greg Farris 3/1/13 X X X X X X X OlE John Staley 3/l/10 OlE X OlE OlE OlE OlE X X Howard Horan 3/1/08 X X X X X X X X Janelle Rettig 3/1/12 OlE X OlE OlE X X X X KEY: X = Present o = Absent OlE = AbsentlExcused NM = No meeting --- = Not a Member 10 J][] MINUTES HISTORIC PRESERVATION COMMISSION THURSDAY, NOVEMBER 1, 2007 EMMA J. HARVAT HALL - CITY HALL Preliminary MEMBERS PRESENT: Michael Brennan, William Downing, Pam Michaud, Jim Ponto, Ginalie Swaim, Tim Toomey, Alicia Trimble, Tim Weitzel MEMBERS ABSENT: Esther Baker STAFF PRESENT: Karen Howard, Sunil Terdalkar OTHERS PRESENT: Roger Anderson, Mary Bennett, Mike Haverkamp, Mike McLaughlin, Marybeth Slonneger CALL TO ORDER: Chairperson Weitzel called the meeting to order at 6:00 p.m. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: There was none. ITEMS OF CONSIDERATION: Recommend Approval of 935 E. Market Street as a Historic Landmark. Terdalkar said a landmark designation can be based on any historical, architectural or archeological significance. He said the Commission can also consider significant historical events or personalities related to the property. Terdalkar said there have been some developments since the previous meeting on October 24th He said the applicant and Friends of Historic Preservation have been working with the property owner to find a solution. Terdalkar said the goal of the landmark designation is to secure the property so that the house can be moved to a location where it can be restored. He said the State Historical Society has been approached regarding the eligibility of the Wetherby House. He said in their preliminary review they have determined that the property is eligible based on the fact that it is associated with Isaac Wetherby and it is the only known extant building with a connection to Wetherby. Terdalkar said the State Historical Society also believes that the house may still retain its eligibility after it is moved to an appropriate location. He said the applicant and owner are suggesting that the application be deferred. He said there has been a private agreement between Friends of Historic Preservation and the owner to delay the demolition. Weitzel asked what the private agreement is. Terdalkar said the agreement is to wait until November 15th to allow a decision regarding the move, if the application for landmark designation is deferred. He said the owner is willing to work with Friends of Historic Preservation. Weitzel asked if the agreement is conditional based on the Commission's deferral tonight. Terdalkar said that is how the owner of the property has approached staff. Weitzel asked if after the Commission voted on the issue Planning and Zoning would have one or two public hearings. Terdalkar said one hearing at the Planning and Zoning Commission. Weitzel asked if there would be two or three hearings at City Council. Howard said City Council could hold one meeting, but would have to vote on the application three times. Weitzel asked if there was any legal way to fast track the application. Terdalkar said there would be some flexibility in arranging the public meetings and there could be some expedited action. Howard said that because the property can be designated a landmark after it is moved, the long process could take place after it is moved. Historic Preservation Commission November 1, 2007 Page 2 Weitzel asked if the Commission would have to open the public hearing if they decided not to defer at this point. Terdalkar said the Commission could get some input from the applicant and the owner, and then proceed with further discussion. Weitzel said it would be helpful for the owner and applicant to restate their agreement for the record. Weitzel said he would like to read the guidelines for landmark status. He said historic landmarks are buildings that are individually significant for their architectural and/or cultural merits. Like historic districts, theses properties are typically listed on the National Register of Historic Places, or are eligible for listing on the National Register. He added that the State Historical Society and architectural historians that the Wetherby House is eligible. Weitzel said landmarks are properties that are individually signifiicant because of their architectural quality, integrity and historical or cultural significance. Weitzel said the Commission isn't here for debate, but instead for fact finding. Swaim asked how deferring the application works on behalf of the owner and applicant. Terdalkar said the owner is willing to work with the applicant and Friends of Historic Preservation on moving the property. He said there is a 60-day moratorium period if a public hearing is set by the City Council and the owner would like the City to not set a public hearing. Swaim asked if nothing could be done to the house during the 50-day moratorium period, including moving it. Terdalkar said nothing could be done during that 60-day period unless an official action after a public hearing has taken place. Weitzel opened the public hearing. Mike Haverkamp introduced himself as the President of Friends for Historic Preservation. He said Friends has been talking to Mike McLaughlin, the owner of 935 E. Market Street, about the possibility of moving the Wetherby House. Haverkamp said there is a possibility of moving the house to Reno Street Park. He said that the Parks and Recreation Department and City Council said there need to be support from the Goosetown Neighborhood. He added that a long term plan needs to be developed for the maintenance of the property. Haverkamp said Friends has been looking at the possibility of getting HRDP grants and local donations to move the house. He said Friends came to an agreement with McLaughlin to hold off on the demolition until November 15th to give Friends enough time to have a rational idea on what it would take the save the house. Haverkamp said he thinks Friends and the owner have come to a voluntary agreement and recommends deferral of the application. McLaughlin said he is the. owner of 935 E. Market Street. He said he has been approached by Marybeth Slonneger and Haverkamp regarding the preservation of the Wetherby House. He said hat he must demolish or remove the two structures on the property before obtaining a plat survey to split the existing lot down the middle. He said his plan is to construct two separate structures on each of the two lots. McLaughlin said there is a garage on the property, but there has only been interest in the preserving the house. He said it has been worked out over the phone that he would give the house to Friends of Historic Preservation and they would be responsibly for the structure. He added that the where the property could be moved still needs to be ironed out. McLaughlin said he has talked to the City Attorney's about what will happen to his demolition permit with all of the various scenarios. He said if there would be a recommendation from this commission or the public to the City Council for a public hearing, then the demolition permit would be stayed. McLaughlin said he draws the line at the point of a public hearing and does not want to lose his demolition permit. He said he is willing to deal with this issue privately with Friends of Historic Preservation. He added that his contractor has no problem waiting until November 15th for a decision, and might be flexible beyond that. McLaughlin said that losing his demolition permit would cause a considerable financial burden. Historic Preservation Commission November 1, 2007 Page 3 McLaughlin said the request for deferral is preferred because it will allow for a deal to work out privately and avoid time constraints. Weitzel said the Commission's intent is never to cause unnecessary delays or expense to a property owner. Marybeth Slonneger, the applicant, said Carl Klaus and herself are the co-representatives of the Goosetown Neighborhood Association. She said Klaus cannot attend the meeting tonight, but strongly recommends the Reno Street Park as a location for the Wetherby House. Slonneger said a vacant lot left by a demOlished house was given to the Reno Street Park by the City and still has water and gas lines. She added that those water and gas lines could be used to hook up to the house. Slonneger said Heritage Trees and other local organizations have shown interest in donating money to restore the house. Slonneger said a lot available on Prairie du Chien Road and Hickory Hill Park are other options for the location of the Wetherby House. She said Hickory Hill Park would provide less protection to the house than Reno Street Park. Weitzel asked if a vote has been made by the Goosetown Neighborhood Association. Slonneger said she was supposed to receive e-mails from the other representatives. Weitzel said that it sounds like there needs to be more time for the association to make a decision. Slonneger said she sent out the notices about moving the house to Reno Street Park the previous night, so no one was prepared. Roger Anderson said that his property is adjacent to the Reno Street Park and does not support moving the Wetherby House to the park. He said the property should be left where it is. He added that he objects to losing the park. Anderson said the homes on the south side of the park are setback quite a distance from other homes in the city, so the further the house is set back, the less park space there will be left available. Mary Bennett, an employee of the State Historical Society, said she would like to see the discussion on the Wetherby House done a public manner. She said that two weeks isn't enough time to make sure the evaluations are done properly. She added that if private discussions continue, the threat of a demolition is held over our heads of those trying to save the property. Bennett said the economic pressures and the private negotiations have not exposed all of the angles that can be taken. Bennett said she would like to see the property preserved at the current location. Weitzel closed the public hearing. Weitzel said the Commission can now discuss and entertain motions. He added the main concern is to determine if the Wetherby House is eligible for landmark designation. Ponto said this is a bad situation because ideally the whole process for designating a landmark should have started a long time ago. He said the cost of moving it may meet or exceed the amount the property could be sold at. He added that at this point, private discussions would be in the best interest of the public. Ponto said he would support deferral of the application. Michaud asked if a representative from Parks and Recreation would be there during private discussions. Haverkamp said Friends has talked to Parks and Recreation and will be giving a presentation to them at their next meeting on November 15th. He added that Parks and Recreation would be willing to schedule an earlier meeting, if needed. Swaim said it sounds like if something is going to be worked out, it is going to happen in the next two weeks. Historic Preservation Commission November 1, 2007 Page 4 Toomey asked if approval by Parks and Recreation and the house needs to be moved in two weeks. McLaughlin said he would be willing to give Friends until 6 p.m. on the 15th of November to have the structure moved. He added that there may be some flexibility beyond that. McLaughlin said his contractor that will head up the demolition is willing to be flexible about the date. Toomey said that if the house is moved to a city-owned park, it becomes city property. Weitzel said it depends on what kind of agreements are made. Weitzel asked what an adequate time frame would be to receive grants for the property. Bennett said 30 days. Michaud asked what the time frame is on the demolition permit. McLaughlin said 60 days. He added that he is trying to complete his project in July 2008 and cannot wait a few months to start the project. He said he does not want to continue to monitor a request for a public hearing with the City Council. McLaughlin said a public hearing would be giving up too much of control of the project. Michaud asked Slonneger if Plum Grove was an option. Slonneger said Plum Grove is not an option. She said the Butler property and Wetherby Park are other options. She added that Parks and Recreation did not recommend Wetherby Park due to the high rate of vandalism. Michaud asked if Slonneger is looking at creating a trust fund for the house. Slonneger said that is the goal, but will not set that up personally. She said an endowment fund would likely be set up by Friends. Slonneger said Friends has also considered having a live-in caretaker. Michaud asked if the Wetherby House could be moved to a different location on the lot while the foundation is being built for the duplexes. Terdalkar said that may not be allowed because a lot must be clear to have it split and to get a building permit for future buildings as the owner is proposing. Weitzel asked how long those processes typically take. Terdalkar said staff has not received any plans and cannot give a definite time frame. He added that Housing & Inspection Services might have more information. Howard said the design review process generally takes longer than a week, and depending on complexity of the project it may take longer. Weitzel said he asked about the building permit and design review process to find out if there are other time restrictions outside of landmark designation. Weitzel asked McLaughlin how long it would take to demolish the building. McLaughlin said it would take less than a day. Howard said Council needs 24 hours notice before setting a public hearing. She recommended that the applicant and the owner talk to the Council and let them know that a private agreement is going forward. McLaughlin said regardless of what they would say to Council, they could decide otherwise and set the public hearing. Howard said the Council has to motion to set a public hearing, so it is up to the discretion of the City Council to set a public hearing. Weitzel said a request for a public hearing doesn't necessarily mean the demolition permit will be lost. McLaughlin said there is always a chance that they could vote in the affirmative and that would jeopardize the permit. Toomey asked what effect the Commission would have from voting tonight. He also asked if voting to designate the Wetherby House as a historic landmark would prevent the demolition from happening in two weeks. McLaughlin said that recommendation to the City Council would then have to vote on setting a public hearing. Howard said what the Commission has in front of them is a request from the applicant to defer to allow private negotiations to continue. Historic Preservation Commission November 1, 2007 Page 5 Slonneger asked if the Wetherby House could be moved to some location as a holding place. Weitzel said since the Historical Society of Iowa said that its eligibility does not suffer from the location of the building, so a deferral is in order. MOTION: Ponto made a motion to defer the application. Michaud seconded the motion. Brennan said he will be voting to defer. He said the current plan is to demolish the structure. He said deferring the application will allow time to move the building. Brennan said a vote tonight would put more pressure on McLaughlin to exercise his right of demolition or risk losing his permit. He said the better decision is to defer. Swaim said she will be voting to defer. She hopes that the extra time will give the applicant more time to work on moving the building. She said that she hopes the owner will be flexible about the moving date. Weitzel said the applicant should make all due haste to move the building and worry about the rest later. Motion carried on a vote of 8-0. Meeting adjourned at 7:10 p.m. Minutes submitted by Doug Ongie. s/pcd/mins/hpcl2007/11-01-07.doc Historic Preservation Commission November 1, 2007 Page 6 Historic Preservation Commission Attendance Record 2007 11/01 OlE X X -- -- X X X X X X 10/24 X OlE X -- -- X X X X X X 10/11 X X -- -- X -- -- X X X OlE X X 9/17 X X -- -- X X X OlE X X 8/9 X X -- -- OlE X X OlE X X X 7/12 X X -- -- OlE X X X X OlE X 6/28 X o OlE X X X X X X 6/12 X OlE OlE OlE X X X X X 5/31 X X OlE X OlE X X X X 5/17 X OlE OlE X X OlE X X X 4/12 X X X OlE X X X X X 3/08 OlE X X OlE OlE X X X X OlE 2/08 X X X X OlE X X X X X Key: X = Present o = Absent OlE = Absent/Excused NM = No Meeting = Not a Memb er Term Expires 3/29/09 3/29108 3/29/07 - 3/29/10 3/29/07 3/29/08 3/29/09 3/29/07 3/29/09 3/29/10 3/29/09 3/29/08 Name Baker Brennan Carlson Downing Gunn McCormally Michaud Ponto Swaim Trimble Toomey Weitzel 11-21-07 IP16 IOWA CITY TELECOMMUNICA nONS COMMISSION DRAFT MONDAY, OCTOBER 22,2007--5:30 P.M. CITY CABLE TV OFFICE, 10 S. LINN ST.-TOWER PLACE P ARKING FACILITY MEMBERS PRESENT: Saul Mekies, Gary Hagen, Hans Hoerschelman MEMBERS ABSENT: Brett Gordon, Margaret Wieting STAFF PRESENT: Drew Shaffer, Mike Brau, Bob Hardy OTHERS PRESENT: Lee Grassley, Josh Goding, Kara Logsden, Susan Rogusky, Craig O'Brien RECOMMENDA nONS TO CITY COUNCIL None at this time. SUMMARY OF DISCUSSION Grassley reported that the upgrade of the headend is in progress. Preparations are being made for the digital simulcast of analog channels. No progress has been made in the negotiations with the Big Ten Network. PATV's annual membership meeting will be Nov. 15 at 7 p.m. Two new board members will be elected. The awards presentation portion of the meeting will be cablecast live. Goding was elected to the national board of the Alliance for Community Media and will be gone for three days to attend their board meeting. Shaffer reported he attended the National Association of Telecommunications Officers and Advisors national conference. At that conference Shaffer discovered that Iowa City has more access channels than any other city with representatives at the meeting. Seattle and Portland OR each have 6 access channels. The Community Television Group approved a recommendation to the Commission to fund two proposals from the Senior Center, one dealing with production of a Spanish-speaking program and one working with United Action for Youth. Also recommended for approval was a wireless microphone system for the Community Television Service. The School District proposal was approved for recommendation in principle, but greater detail was requested as to exact cost. Shaffer noted the transcript of the oral comments provided by himself, Brau, Hoerschelman, and Goding to the Iowa Utility Board regarding the rulemaking to implement SF 554. Hagen said he is impressed that the City has been involved in the process. Mekies said that he is concerned that subscribers of limited means have access to a low cost basic tier or programming. Some people get cable because they lack an antenna or cannot get over the air signals. The demand by the BTN to be placed on the basic tier would drive up costs for these people. The Commission has more information regarding the issues surrounding the BTN and the Commission may have a duty to not be neutral on the issue. APPROV AL OF MINUTES Hoerschelman moved and Hagen seconded a motion to approve amended September 24, 2007 minutes. The minutes were approved unanimously. ANNOUNCEMENTS OF COMMISSIONERS Hoerschelman noted that the ban on Internet taxes was due to expire Nov. 1 and Congress was considering extending the ban. Mekies commended the staff for all the information included in meeting packets and their and Hoerschelman' s testimony before the Iowa Utility Board and said it speaks well of Iowa City. SHORT PUBLIC ANNOUNCEMENTS None. CONSUMER ISSUES Shaffer referred to the complaint report in the meeting packet. There were a total of 15 complaints, 6 of which dealt with the Big Ten Network. All complaints that could be resolved have been. Mekies noted that the complaint level was back down to usual levels absent those of the Big Ten Network. MEDIACOM REPORT Grassley reported that the upgrade of the headend is in progress. Preparations are being made for the digital simulcast of analog channels. No progress has been made in the negotiations with the Big Ten Network. Mediacom has made 5 separate offers in the last 7 weeks but the Big Ten Network has not responded. The final rules for state issued franchises are expected by the end of the year. Hagen said that there are many programmers that offer a HDTV signal and asked when Mediacom will be carrying those channels. Grassley said that the bandwidth is not currently available to add those channels. After the system upgrade is complete the HDTV channels will be added. Hoerschelman asked if outages are anticipated during the upgrade. Grassley said outages are not expected but he could not promise they would not occur. Mekies asked the Commission if they wished to consider taking a position regarding the Big Ten Network. UNIVERSITY OF IOWA REPORT No representative was present. PATV REPORT Goding reported that P A TV has hired a new employee to teach workshops and do production work. On October 29 Live and Local will feature Gary Sanders and his No Baloney City Council Candidate Forum. The next guidelines workshop will be Nov. 4 from 2-4. PATV's annual membership meeting will be Nov. 15 at 7 p.m. Two new board members will be elected. The awards presentation portion of the meeting will be cablecast live. Goding was elected to the national board of the Alliance for Community Media and will be gone for three days to attend their board meeting. KIRKWOOD COMMUNITY COLLEGE REPORT O'Brien distributed Kirkwood's quarterly report. The Kirkwood channel will be cablecasting a program produced by Mediacom in association with the Kirkwood Learning Connection called "It All Adds Up" which features information on careers and employment in the Iowa City/Cedar Rapids area. Kirkwood will be producing a program called the 13 nights of Halloween that will feature 13 nights of horror films. SENIOR CENTER REPORT Rogusky distributed the Senior Center program schedule. Three new producers have joined SCTV. IOWA CITY COMMUNITY SCHOOL DISTRICT REPORT Lowe was unable to attended but provided a written report. New programs include 3 episodes of Education Exchange, 2 new school board meetings, a DPO meeting, and a City Council candidate forum featuring questions from students. Several new musical programs have also been cablecast. A request for $9,500 in funds from the Community Television Group has been submitted and recommended by the group. About $7000 has been requested from the school district foundation for editing software, a camera, and a stipend for a faculty advisor for a student-based video club. LIBRARY REPORT Logsden reported that 9 episodes of the Irving Webber Iowa City history programs and the One of a Kind Series will be made available for download over the Internet. Popos Puppet Festival drew 550 people for 3 programs. The Community Reading Month Book Talk Lunches have started and will be cablecast. The International Writers Workshop programs have started and also are cablecast, as are the International Monday programs. CITY MEDIA UNIT REPORT Hardy reported that Katie Roche, producer for The Community Voice, has been producing a series of programs on the 21 ordinance and another program on Iowa African-Americans in the Negro baseball leagues is nearly finished. The programs are also streamed on citychanneI4.com. The Community Television Service continues to be very busy. 15 programs have been shot in the last month. Among those programs are a panel discussion hosted by the Chamber of Commerce on involvement with the school board, a City Council candidate forum with questions by high school students, a forum on homelessness, the Police Review Commission ordinance up for vote, and the Johnson County Reads program, the Human Rights A wards Breakfast, and the Johnson County Council of Governments Urbanized Board meeting. CABLE ADMINISTRATOR REPORT Shaffer reported he attended the National Association of Telecommunications Officers and Advisors national conference. At that conference Shaffer discovered that Iowa City has more access channels than any other city with representatives at the meeting. Seattle and Portland OR each have 6 access channels. There was a lot of discussion at the conference on universal broadband, including speakers from Holland and Sweden where plans for universal broadband are being developed to provide service to all citizens. One workshop at the conference dealt with municipal cable systems. Shaffer will provide a written report on the conference. City channel 4 has been playing replays of the West High home football games. COMMUNITY TELEVISION GROUP PROPOSAL Hardy referred to the memo in the meeting packet. The CTG approved a recommendation to the Commission to fund two proposals from the Senior Center, one dealing with production of a Spanish-speaking program and one working with United Action for Youth. Also recommended for approval was for a wireless microphone system for the Community Television Service. The School District proposal was approved for recommendation in principle, but greater detail was requested as to exact cost. The School District is in the process of getting a bid on a list of equipment only some of which would be funded by the CTG. When those figures have been finalized the CTG will come back to the Commission for approval of that portion of the funding. Mekies noted that the School District proposal calls for paying a faculty member "the going rate" to be an advisor to a student-based video club and noted that the going rate for faculty advisors is frequently less than minimum wage for the amount of time they often put in and urged that the phrase "the going rate" is inadequate to expect much. Mekies urged that a benchmark or measurable goals be developed to evaluate the impact the funding is having on the schools. The Commission is providing funds and oversight in terms of what is accomplished with the funds and this is part of the Commission's responsibility. Hagen moved to approve the recommended funding for the Senior Center and the Community Television Service at this time and await further details regarding the School District's proposal. Hoerschelman seconded the proposal which passed unanimously. The School District is planning on spending approximately $30,000 themselves on school channel 21 related equipment. LEGISLA TION AND FCC UPDATE Shaffer noted the transcript of the oral comments provided by himself, Brau, Hoerschelman, and Goding to the Iowa Utility Board regarding the rulemaking implementing SF 554. Shaffer said the Board listened and asked questions of the comments. The Board seemed interested in the consumer protection issues put forth. Hagen said he is impressed that the City has been involved in the process. BIG TEN NETWORK Mekies asked if the Commission should take a position regarding the Big Ten Network/Mediacom negotiations. Grassley said that if Mediacom were to meet the BTN's demands, the channel would be the third highest channel in program costs. Sports programming consumes 55% of programming costs on the analog tier but comprise only 10% of the channels. Mekies said that he is concerned that subscribers of limited means will not even have access to a low cost basic tier or programming. Some people get cable because they lack an antenna or cannot get over the air signals. The demand by the BTN to be placed on the basic tier would drive up costs for these people. The Commission has more information regarding the issues surrounding the BTN and the Commission may have a duty to not be neutral on the issue. Hoerschelman suggested that the BTN be approached for their perspective. Mekies said the Commission will continue to consider this issue. Mekies asked Shaffer if he has considered doing a talk show on this issue as he did regarding the Sinclair/Mediacom issue. Shaffer said he did have a conversation with BTN officials who indicated that it is their goal to get on the basic tier if at all possible and did not seem to have much flexibility. Commissioners agreed to further consider their role in the BTN/Meidacom matter. ADJOURNMENT Hagen moved and Hoerschelman seconded a motion to adjourn. The motion passed unanimously. Adjournment was at 6:55. Respectfully submitted, Drew Shaffer Cable TV Administrator TELECOMMUNICATIONS COMMISSION 1!2 MONTH ATTENDANCE RECORD 01/01/03 to CURRENT Meeting Date Kimberly Saul Meikes Brett Castillo Terry Smith Jim Pusaek Thrower 6/2/03 X X X X X 7/28/03 X X X X x 8/25/03 X X X X ole 9/22/03 X X X x ole 10/27/03 x x x x ole 11/24/03 x x o/c x x 12/15/03 o/c o/c x x x 1 /2/04 x o/e x x x 1/26/04 x x x x x 2/23/04 x o/c x o/c x 3/22/04 x x x x x 4/ 26/04 x x x x ole 5/24/04 x x OIC x x 6/28/04 x x x o/c x 7/26/04 o/c x x x x 8/26/04 did not meet did not meet did not meet did not meet did not meet 9/27/04 X X X X X 10/25/04 X X 11/04 Did not meet Did not meet Did not meet Did not meet Did not meet X X X X X 12/20/04 1/24/05 X X X X X 2/28/05 X X X X Garv Hagen 3/8/05 X X X X x 3/25/05 X 0 X X X 4/25/05 x o/c X X X 5/23/05 X 0 x vacancy X James X x Bebe x Ehrmann Balantyne 6/27/05 X x X X X x Michael Chritians 7/25/05 0 X X X X 9/26/05 0 X X 0 X 10/31/05 X X o/c X X 11/28/05 X X X X X 1/23/06 o/c X X 0 X 2.27/06 X X X 0 X 3/27/06 o/c X X John X Weaterson X 4/24/06 X X X X X 5/22/06 0 x x/o 0 X 6/26/06 0 X Vacant 0 X Niek Parker 7/24/06 x x x X 8/24/06 X x M. Wieting ole X 9/25/06 x x x Ole X 10/23/06 x X x ole X 10/30/06 x x x vacant X 11/27/09 x x x X 12.18/06 X X X X Brett Gordon 1/22/07 X X X X X 2/26/07 X X X X X 3/26/07 Vacant x ole x X 4/23/07 Vacant X X X X Hoerseheilma n 521/07 X X ole X x 6/26/07 x x x x X 7/23/07 x x x x X 9/24/07 X X ole ole X 10/22/07 x x ole ole x (X) = Present (0) = Absent (O/C) = Absent/Called (Excused)