HomeMy WebLinkAbout1989-11-14 ResolutionX
Ambrisco
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Balmer
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Courtney
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Horowitz
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Kubby
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Larson
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McDonald
Passed and approved
this 14th day of,November,
1989.
MAYOR
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1.It
is the ,policy_of the City of Iowa City to acquire right-
of-way in accord 'with 'Title III'of said 1970 Act, as 'amended
by, Title IV of the .Surface Transportation and. Uniform
Relocation Assistance Act of 1987, and applicable state
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laws.
2.
it_is,the,;policy , of- the City of City to provide
_Iowa,.
relocation assistance benefits in accord with Title,II of
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.:said 1970 Act, as amended by Title IV, and applicable state
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laws.
3.
The above named City will contact the Iowa Department of
Transportation for,.assistance .as needed to assure compliance
with applicable laws"whioh are summarized in the instruction
entitled "Right-of-Way Acquisition Policies and Procedures."
November 14.1989
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Date Approved Mayor of the City
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RETURN THIS FORM TO:
i
Shirley Day-Vlotho
Office of Local Systems
Iowa DOT
Ames, IA 50010
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47
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RESOLUTION NO. 89-261
RESOLUTION APPROVING FY91, 92, 93, 94, 95 OFFICIAL REPORT OF
MUNICIPALITIES FOR THE STREET-CONSTRUCTION PROGRAM FROM
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JULY 1, 1990 TO JUNE 301995
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, JOHNSON COUNTY, IOWA, that
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the Official Report of Municipalities for Street Construction Program from July
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1, 1990 to June 30, 1995, be approved.
It was moved by Ambrisco and seconded by Horowitz
that the Resolution as read be adopted, and upon roll call there were:
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AYES: NAYS: ABSENT:
—X AMBRISCO
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X BALMER
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X COURTNEY
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X HOROi
LARSON
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X .. McDONALD
KUBBY
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Passed and approved this 14th day of November, 1989.
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MAYOR
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STREET CONSTRUCTION PROGRAM
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FOR
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Q CITIES - Pop. 1,000 - 4,900 (one-year) -
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Ex-] CITIES -Pop. 5,000 &over (five-year comprehensive).
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Iowa Depanmem of Tramponwwn R.U.T'4
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i OFFICIAL
STREET CONSTRUCTION PROGRAM
FOR
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Q CITIES - Pop. 1,000 - 4,900 (one-year) -
Ex-] CITIES -Pop. 5,000 &over (five-year comprehensive).
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City City- Tgy3
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County '-`neon
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.. .. From July 1, 90—
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June 30,
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Marian K:- Karr ouydeikonheCityot Iowa Citv Iowa
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report as of ltsfiscal July l� 990 toJune30,i�one year/live
tlohere6
ceriifylhai ihecity council has byresolutlon approved this official
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year comprehensive Street Construction, Program this Month DeY--.Y
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' Marian K. Karr %%1�'• X • ,
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MeIll np Address 410E Washington St wa IoCity Inwa
319/356-5041 Hours Avaliable 8.00 a m 5.00 D m
Daytime Phone No. rA,a. cop.l .
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John McDonald Mayor
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MEMBERS OF THE COUNCIL
John McDonald
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William'Ambrisco
Darrel Courtney
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Susan Horowitz
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Randy Larson
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John Balmer
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Karen Kubbv
CIIIeB-Pop.5,0008 over shell tile, on or balers D-C.I of each year, two copies of this report and two maps with the Iowa Dept. of Tranaporletlon,
3l each two copieaolthlB report and two mope with the Iowa Dept of Tranaponellan.
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&&&&
Clties•Pop. 1,000-4,999 shall file, on or before Dec. of year,
White Copy- Office of Transportation Inventory; Yellow Copy -District Planner; Pink Copy- City
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Distribution: ,.
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STREET CONSTRUCTION PROGRAM
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❑ 1Year Program (Pop.t,000.4,999) City
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Project
Street Name
5
Project Limits
State Fune.
Surface
Type of
Project Length
Total Estimated Coal
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From
Iowa Inter-
To
Existing
Proposed
30 x 242 )
(0.05
Nc
Chualflcetion
Constnletlon
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state: Railroad Pavement
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91
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Resurfacing .
(Miscellaneous Lo
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12
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6, 12
Unknown
1,150,000
Gilbert St. &
Add right turn la
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04
Kirkwood Ave. &
Ratlroad crossing
signals on
10,
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IDOT
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Gilbert Court..
Iowa Interstate
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12
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10.
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Hawkins Drive
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Waterfront Drive
Gilbert Street
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Distribution. White Copy. Office of Transportation Inventory; Yellow Copy - District Plennor; Pink Copy- City
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19220002 2B Trmlpmbllon
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STREET CONSTRUCTIONPROggAM
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For July 1, 192-0—To June 30, 1
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c 1 Distribution White Copy- L
Office of Transportation Inventory, Yellow Copy- District Planner; Pink Copy -City
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Subject Street Construction Program, Road Use Tax Fund �t s
we"acknowledge receiving your city's five-year Street Construction
Program for the period July 1, 1990 thru June 30, 1995 as required by;
" Section 312.12 of the Code of Iowa.
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Sincerely,
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Patrick R. Cain,'Director
Office of Transportation Inventory
Planning & Research Division
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Absent: None
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OF THE ISSUANCE OF $2,960,000 GENERAL OBLIGATION BONDS
(FOR AN ESSENTIAL CORPORATE PURPOSE) OF IOWA CITY, IOWA,
AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of
6 Iowa City, Iowa, should issue General Obligation Bonds to the
iF amount of $2,960;000, as authorized -by.Section 384.25, of the .City
Code of Iowa, for the purpose of providing funds to pay costs of
carrying out an essential corporate purpose project as hereinafter
described; and
WHEREAS, before said bonds may be issued, it is necessary to
comply with the provisions of said Code, and to publish a notice
of the proposal to issue such bonds and of the time and place of
the meeting at which the Council proposes to take action for the
issuance of the bonds and to receive oral and/or written
objections from any resident or property owner of said City to
such action;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
,'"OF IOWA CITY, IOWA:
Section 1. That this Council meet in the Council Chambers,
Civic Center, Iowa City, Iowa, at 7:30 o'clock P .M., on the
21st day of Nnvnmhrr , 1989, for the purpose of taking
action on the matter of the issuance of $2,960,000 General
Obligation Bonds for an essential corporate purpose of said City,
the proceeds of which bonds will be used to provide funds to pay
costs of acquisition, construction and equipping of sewage
treatment works and facilities; improvements to existing City
parks; acquisition, construction, reconstruction and enlargement
of bridges and culverts; reconstruction and improvement of q
-2-
MUMS. MONEY. III1RWEILE11, HAYNIE, M1 MI k ALIAIEE
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Council Member Ambrisco introduced the following
Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE
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PROPOSITION OF THE ISSUANCE OF $2,960,000 GENERAL OBLIGATION BONDS
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(FOR AN ESSENTIAL CORPORATE PURPOSE) OF IOWA CITY, IOWA, AND
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PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the
same be adopted. Council Member Horowitz seconded the
motion to adopt. The roll was called and the vote was,
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AYES: Ambrisco, Balmer, Courtney,
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Horowitz, Kubby, Larson, McDonald.
P
NAYS: None.
Whereupon, the Mayor declared the resolution duly adopted as
follows:
#89-262
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION
OF THE ISSUANCE OF $2,960,000 GENERAL OBLIGATION BONDS
(FOR AN ESSENTIAL CORPORATE PURPOSE) OF IOWA CITY, IOWA,
AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of
6 Iowa City, Iowa, should issue General Obligation Bonds to the
iF amount of $2,960;000, as authorized -by.Section 384.25, of the .City
Code of Iowa, for the purpose of providing funds to pay costs of
carrying out an essential corporate purpose project as hereinafter
described; and
WHEREAS, before said bonds may be issued, it is necessary to
comply with the provisions of said Code, and to publish a notice
of the proposal to issue such bonds and of the time and place of
the meeting at which the Council proposes to take action for the
issuance of the bonds and to receive oral and/or written
objections from any resident or property owner of said City to
such action;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
,'"OF IOWA CITY, IOWA:
Section 1. That this Council meet in the Council Chambers,
Civic Center, Iowa City, Iowa, at 7:30 o'clock P .M., on the
21st day of Nnvnmhrr , 1989, for the purpose of taking
action on the matter of the issuance of $2,960,000 General
Obligation Bonds for an essential corporate purpose of said City,
the proceeds of which bonds will be used to provide funds to pay
costs of acquisition, construction and equipping of sewage
treatment works and facilities; improvements to existing City
parks; acquisition, construction, reconstruction and enlargement
of bridges and culverts; reconstruction and improvement of q
-2-
MUMS. MONEY. III1RWEILE11, HAYNIE, M1 MI k ALIAIEE
AMnNrV6ATuw omuowce.w ^
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for the
waterwaysprotection of existing property and improvements
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within the City; and acquisition of real estate for street
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improvements.
Section 2. That the Clerk is hereby directed to cause
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at
least one publication to be made of a notice of said meeting, in a
legal newspaper, printed wholly in the English language, published
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at least once weekly, and having general circulation in said City,
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said publication to be not less than four clear days nor more than
twenty days before the date of said public meeting on the issuance
s
of said bonds.:
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Section 3. The notice of the proposed action to issue said
bonds shall be in substantially the following form:
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AMRNCW4MW MDMOIN[I.IOWN
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NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
IOWA CITY, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF :2,960,000 GENERAL OBLIGATION BONDS
(FOR AN ESSENTIAL CORPORATE PURPOSE) OF SAID CITY,
AND THE HEARING ON THE ISSUANCE THEREOF,
PUBLIC NOTICE Is hereby given that the Council of City of
Iowa City, Iowa, will hold a public hearing on the 21st day of
November, 1989, at 7:30 O'clock p.m., In the Council
Chambers, Chic Comer, lava City, Iowa, at which meeting the
Council proposes to take additional action for the Issuance of
$2,960,000 General Obligation Bonds for an essential corporate
'
purpose of sakd City, N order to provide funds to pay costs of
acquisition, construction and equipping of sewage treatment
works and facilities; Improvements to existing City parks;
• - -"
acquisition, construction, reconstruction and enlargement of
bridges and culverts; reconstruction and improvement of
waterways for rine protection of existing property and
Improvements within the Cly; and acquisition of real estate for
I ,;
street Improvements:
At theabove meeting, the Council shall receive oral or
-
If
written objections from any resident or property owner of said
Cly, to the above action., After all objections have been
.
received and considered, the Council will at this meeting or at
any adjournment thereof, take additional, action for the
Issuance of said bonds or will abandon the proposal to Issue
-
`�'. • i �`
said bonds.(�-
... This notice Is given by oder of the Council of Iowa Cly,
Iowa, as provided by Section 384.26 of the CIry Code of Iowa
- Dated this ..14th day of November , 1989.
_
MARIAN K KARR
CITY CLERK OF IOWA CRY, IOWA
■
Clerk
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proceedings remain in full force and effect, and have not been
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amended or rescinded in any way; that meeting and all action
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thereat, was duly and publicly held in accordance with a notice of
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meeting and tentative agenda, a copy of which was timely served on
7.
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each.member of the Council and posted on a bulletin board or other
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prominent place easily accessible to the public and clearly
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designated for that purpose at the principal office of the Council
(a copy of the face sheet of said agenda being attached hereto)
1 '
pursuant to.the local rules of the Council and the provisions of
'
Chapter 21, Code of Iowa, upon reasonable advance notice to the
public and media at least twenty-four hours prior to the com-
mencement of the meeting as required by said law and with members
„ ,•
of the public present in attendance; I further, certify that the
individuals named therein were on the date thereof duly and
5'-
lawfully possessed their respective city offices as indicated
,of
therein, that no Council vacancy existed except as may be stated
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in said proceedings; and that no controversy or litigation is
pending, g, prayed. or threatened involving the incorporation,
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organization; existence or boundaries of the City or the right of
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the individuals named therein as officers to their respective
,
positions.
d-
WITNESS my hand and the seal of said Municipality hereto
affixed this 14th day of November , 1989.
City Clerk, Iowa City, Iowa
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SEAL
City of Iowa City
MEMORANDUM -�
Date: November 7, 1989
To: City Council
From: Rosemary Vitosh, Director of Finance
i
Re: 1989 General Obligation Bond Issue
A resolution is Included on your November 14, 1989, agenda which will set a public hearing
on November 21, 1989, to consider the Issuance of $2,96 million of General Obligation Bonds.
A timetable for the proposed bond issue is attached.
will be at your November 13, 1989, informal Council meeting to further review this Bond Issue.
RV/sp
Attachments
Also attached is a listing of the Capital Improvement Projects which would be funded with the
bond proceeds. This bond issue coincides closely to our current Three Year Financial Plan
iII
with a few exceptions,
_
$1.2 million in bond proceeds will be used to complete the local financing needed for the
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Wastewater Treatment Facility. The additional financing needed for this project was originally
'
expected to be much higher. Fortunately, total interest income earned on the sewer revenue
than originally estimated due, to the delay of the project and the
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bond proceeds was higher
City received an EPA grant for a portion of the project.
Bond proceeds will also be used for land acquisition for an extension of Southgate Street.
This project was not included in the current CIP. However, recent development in the area has
f
shown the need for an additional access road,
The City is well within its legal debt margin for outstanding bonds at this time. State law
permits municipalities to Issue debt of up to five percent of total assessed valuation. For Iowa
City, that amounts to $65.4 million. Iowa City's current outstanding debt is $14.4 million and "
Will Increase to $17.4 million with the 1989 bond issue.
! •
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Evensen Dodge, Inc, will serve as fiscal advisor for the bond issue. They are currently
Analysis will be at the Council's informal meeting on November 21,
j
preparing a Presale and
1989, to review that report with the City Council.
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will be at your November 13, 1989, informal Council meeting to further review this Bond Issue.
RV/sp
Attachments
Timetable - 1989 GO Bond Issue
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4 11/1/89
1989 GENERAL OBLIGATION BOND ISSUE
z PROJECT DESCRIPTIONS
WASTEWATER TREATMENT FACILITY:
A new treatment plant, interceptor sewers and storm sewers are
being constructed plus the existing plant is being upgraded in order
for the entire system to be in compliance with EPA standards. Total
project costs are estimated at $43.5 million. Sewer Revenue Bonds
sold in 1986, along with interest income on those bond proceeds,
will fund $37.1 million of the total cost. The remaining costs will be
funded from Pollution Control Operations/user fees ($1.5 million), a
Federal EPA Grant ($3.7 million), and this general obligation bond
issue ($1.2 million).
$1,200,000 I
PARKS HANDICAPPED ACCESSIBILITY PROGRAM: 10,000
This is a plan for a multi-year program, beginning in FY90, to modify
existing park facilities in order to make them handicapped acces-
Bible. It would entail constructing hard surface paths and ramps,
modifying restrooms, shelters, etc. General Obligation bonds will be
a used to fund these park improvements. This amount will cover
improvements planned for the first year of the program only,
NEW RESTROOM IN LOWER CITY PARK:
A concrete block building will be constructed to replace the 50 year
old existing facility. The new restroom will be larger, have better
ventilation, be entirely accessible to the handicapped, and will be
located near the playground equipment. General Obligation bonds
will fund this project.
BENTON STREET BRIDGE WIDENING:
This project will provide for the design, widening and rehabilitation
of the Benton Street Bridge over the Iowa River from the existing
two-lane to a four -lane facility. Total project cost is estimated at
$3.03 million. Funding will be provided by FAUS ($930,000), Federal
Aid to Bridge Replacement ($650,000), and General Obligation
bonds ($1.45 million). The projected completion date is May, 1991.
BRIDGE AND CULVERT PROJECTS PLANNING:
Several bridge replacement projects and slormwater culverts are
being planned. Work for design or studies of the individual projects
will be funded by General Obligation bonds.
PIER SCOUR ELIMINATION:
This project entails the Installation of rip rap around the piers of the
Park Road and Iowa Avenue Bridges which span the Iowa River.
The rip rap will protect the piers where the Iowa River current has
displaced backfill, a condition referred to as scour. General
Obligation bonds will fund this project,
.m
1,450,000
25,000
48,000
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MELROSE AVENUE BRIDGE REPLACEMENT:
This project will provide for the design and replacement of the
83,000
Melrose Avenue bridge which spans the Heartland Rail Corporation
railroad tracks, along with the design and reconstruction of Melrose
Avenue from Hawkins Drive to Olive Court in University Heights.
Total project cost is estimated at $935,000. This bond issue will
fund design costs only, with construction scheduled for FY92.
I
Additional bonds will be sold at that time to fund construction costs.
SOUTHGATE STREET EXTENSION:
New development in the area south of the Highway 6 Bypass
25,000
necessitates another southwest exit from that area. This portion of
.
the project would Involve the purchase of right-of-way for the street
which in the future would be extended from Waterfront Drive to the
Crandic Railroad. This phase of the project Includes only land
a uisition costs.
c9
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DISCOUNT AND BOND ISSUANCE COST:
59.000
:
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ori Ir ��'I a, ur
TOTAL:.
2221.0-00
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Suzanne Richerson
331 Lucon Dr.
Iowa City, Iowa 52246
November 2, 1989
(p�
John McDonald l6 D
Mayor of Iowa City
Iowa City Civic Center i,�-',• 1589
,}
Iowa City, Iowa
MARIAN K. KARR
Dear Mayor McDonald: CITY CLERK (1)
I want to express my hearty enthusiasm for the university campus
pathways proposed by Hunter Rawlings III in his recent faculty
convocation speech.
I like the idea of a "human -centered approach" to planning for the UI
campus. The fine old buildings on the,Pentacrest, the spacious
complex of arts buildings along the river, and the medical science
buildings, all give Iowa City a gracious and distinctive character. It
By recognizing and setting off the natural beauty of the landscape ,
throughout the campus.andalong _the banks of .the river,_; Iowa Cit and --
^'
the university together will create spaces where I'
p people can take time
ri
to appreciate those characteristics..
Having, lived at various times, in cities, I realizethe importance of
green spaces in the areas inhabited and traversed by large numbers of f
people,_how those,' greenspaces.contribute not only to the beauty of
the city but to a sense of its humanity as well. Our human needs are j11
as important as traffic control and adequate parking. Unlike
machines, we are thinking and feeling humans who like to walk in the
shade of trees and by,' green grass; who want to enjoy the landscape `of = +
our town. When Iowa City created a walking plaza as part of the (,
downtown urban renewalproject, combining practical and'6thetic 1i
aspects in the central businessdistrict, the improvement to our i
;{•=
public places gave the whole community a sense of pride.
'1 a..,,.
I
I hope the>Iowa City city council will loin with the university in
'
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CITYOFIOWA CITY
DATE2 October 27, 1989
'
TO: The Honorable Mayor and the City Council
1-
i
RE: Civil Service Entrance Examination - Programmer,);.
-
+., ..,. d, .. :..:.
_.
;.
..
We, the undersigned members of the Civil Service Commission Iowa
.,,
.of :City,
Iowa, do,hereby-certify,, following. named persons --'in the order of'their
I
.the
standing as eligible for the positionof programmer, Finance/Data Processing.
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Leigh'Sloan'- Hired: 10/16/89
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Mark Schroeder
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i T�rl Y. ,v W. T1,Pr .yw r..L �.fs,/ rv.
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IOWA CI Y CIVIL VTC COMM ION
Michail!/r Kennedy. hair '
1' •" ' "'t 4{
'ht
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Dick Buxton
p�t llrl lSM ka°tJt t
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Norwood C. Louis
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ATTEST: /^`� 7f
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Marian Karr, City Clerk
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CIVIC
CENTER • 410 BAST WASHINGTON STRIIItT • IOWA CITY. IOWA 52240 • (319),356.5000'
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City of Iowa City
MEMORANDUM
Date: October 31, 1989
To: Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer
Re: Loading Zone - South Side of the 500 Block of East Bloomington
As directed by Section 23-16 of the Municipal Code of Iowa City, this is to advise
you of the following action.
ACTION:
Pursuant to Section 23-287 of the Municipal Code of Iowa City, the City Traffic
Engineer will direct the installation of NO PARKING - LOADING ZONE. -.15 MINUTE
PARALLEL STANDING in the parking on the parking. constructed by Mercy
Hospital on the south side of the 500 block of East Bloomington Street., This
action will take place on or shortly after November 15, 1989.
COMMENT
The action noted above Is being taken at the request of Mercy Hospital. It Is
consistent with the original construction of the parking on the parking that was
undertaking approximately three years ago. In the development of the plan
submitted to P6Z and the Council by Mercy Hospital for the development of its new
emergency facility, there was provision made for pull -off standing to discharge
and assist emergency patients.
bj/pc2
FI L E
OCT 3 1 1989
Mirion &Karr'kvil 04 Owk
Im ch,
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City of Iowa City
MEMORANDUM
-
C
Date: October 25, 1989
To: Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer j
I{
Re: Parking Prohibition on Mayfield Road
Pursuant to Section 23-16 of the Municipal Code of Iowa City, this is to advise you
of the following action:
ACTION:
Pursuant to Section 23-234 of the Municipal Code of Iowa City, the City Traffic l
Engineer-will.direct the installation of NO PARKING ANYTIMEsigns on the north
side of Mayfield Road from its intersection with First Avenue east to its intersec-
j
ti
tion. with Washington Park Road. The earliest that this action will take place will �I '-
be N
November B. The installation effort will be coordinated with the sanitary sewer
contractor so that the signs are not installed prior to the completion of the sewer
work along Mayfield Road. I
!
This action is being taken after completion of a postcard. survey of. the affected;;
residents. 27 residents were questioned regarding their preference in the matter. �I
i
23. of.,the affected homeowners responded. - Of the responding 23 homeowners, 15
preferred the removal while 8'were opposed to the removal. Of the 23 responding
f
homeowners, 11 preferred that the prohibition be on the north side, 9 preferred II "j,,
that the prohibition be on the south side, and 3 homeowners had no preference.
I
The action described above is based upon a consensus of the homeowners that
responded to the postcard survey.,
bj/pct
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City of Iowa City
MEMORANDUM
Date: October 26, 1989
To: The Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer
Re: Parking Prohibition on Boyrum Street
As directed by Section 23.16 of the Municipal Code of Iowa City, this is to advise you of the
following action:
ACTION:
Pursuant to Section 23-234 of the Municipal Code of Iowa City, the City Traffic Engineer will
direct the installation of NO PARKING ANYTIME signs on Boyrum Street from its Intersection
with, Highland Avenue south to its intersection with Southgate Avenue. This action will take'.'
place on or shortly after November 10, 1989.
COMMENT:
This action is being taken in recognition of the increased commercial development along
r Boyrum Street. The prohibition of traffic on both sides of Boyrum will promote movement along
and entry onto Boyrum Street from various commercial enterprises.
bdw4 4
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RESOLUTION NO. 89-263
RESOLUTION APPROVING THE PRELIMINARY PLAT OF OAKBROOKE PLACE,
i
A SUBDIVISION OF IOWA CITY, IOWA.
1
WHEREAS, the subdivider, Smith -Moreland Properties, has filed with the City Clerk, the
Preliminary Plat of Oakbrooke Place, a Subdivision of Iowa City, Johnson County, Iowa; and
WHEREAS, the Preliminary Plat and Subdivision are found to conform with Chapter 409, Code i
of Iowa (1989) and all other statutory requirements, with the exception that sidewalks along the
west side of Thomas Court as required by City of Iowa City Subdivision Regulations have been
waived; and
WHEREAS, said Plat and Subdivision were examined by the Planning and Zoning Commission,
which recommended that said Plat and Subdivision be accepted and approved, with the
condition that sidewalks along the west side of Thomast Court be waived.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, that said Plat and Subdivision should be and hereby are approved.
by
The tore oin resolution was moved b Courtney - and seconded bat
A o '-
I� '
a duly convened meeting of the Ci
City Iowa C' Iowa held _Clvic
Y the Clvic
9 of aty Center in
rtY, , In
Iowa City,. Iowa, on the day of Nov. 1989, commencing at 7:30 p.m.
j
Upon roll call, the following vote was taken:
I'
AYES: NAYS: ABSENT:
X Ambrisco
i
r
X Balmer
X — Courtney
�.
X Horowitz
XKubby
' Y
X Larson
`
X McDonald
'
Passed and approved this 14th day of November 1989.
�
Approved as to Form
4
ATTEST:
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s
CITY -CLERK Legal Department
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City of Iowa City
MEMORANDUM
i
Date: November 13, 1989 !,
To: City Council I
From: City Manager
Re: Oakbrooke Place
i
Approval is pending for a preliminary plat of an 18 -lot, low density single-family
residential subdivision known as Oakbrooke Place. The approximate 13.7 acre i
tract of land is located north of Rochester Avenue, south of Ralston Creek and
east of lots along Bluffwood Lane.The parcel is steeply sloped with slopes in
excess of 25 percent in the eastern part of the tract. Because of the parcel's I..
,•_,.i. location on Rochester Avenue and due to, its environmental characteristics, staff -
"� had, originally recommended that the plat be amended to prohibit direct lot access i1
onto Rochester Avenue and to provide for the future connection of the subdivision
via a roadway extension to the east from the Thomas Court turnaround.
i
At its October 19, 1989, meeting, the Planning and Zoning Commission recom-
mended, approval of the preliminary plat of Oakbrooke Place without the recom-
mended modifications: The Commission felt that the extra pavement required by {+
I {
a 16 -foot wide access road across two Jots would detract from the environmental
attributes of the tract. Similarly, the Commission determined that extension of the
- roadway to the eastern boundary of the subdivision, across an existing drainage -
way, would likely denigrate the environmental characteristics of the tract.
,- i
There As concern for the prospective residents of this subdivision as they I ;
enter/exit onto Rochester; an arterial street.
r Approximately a year ago a proposal was rejected which would have allowed one lot
.., in the vicinity of Amhurst Street to have direct access to Rochester Avenue.
Rochester Avenue is unique in that much of the undeveloped land north of
Rochester Avenue slopes rather abruptly to the north. The only relatively flat
areas are immediately adjacent to Rochester Avenue. Fronting lots on Rochester
however, individual
Avenue is, therefore, encouraged from a design standpoint;
�9s9
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3
gradual slope of the cul-de-sac is at the turnaround at a grade of 5% While the
subdivision will certainly be attractive with respect to the type of development
desired, there will be some operational/ service difficulties and we need to
encourage the developer to share these with home builders/owners. The street
grades will not permit drivers to gain momentum to ascend the hill when the street
is icy and snow covered. Snow removal policies provide priority to arterials,
collectors, and streets with severe slopes; however, the timing of snow removal
is rarely done at the convenience of the home owner and therefore there will be
times that they will simply not be able to get out of their driveways.
Also discussed was the extension of the street easterly to allow for its eventual II
connection to subdivisions to the east and to the north over land with more gradual
elopes. The connection would require that it cross a deep ravine along the eastern t
boundary of the subdivision. Filling would be required at the location of the
street, affecting the natural characteristics of the ravine to "a limited extent.
1
This memorandum is not intended to do anymore than express concerns and allow
better understanding of the wishes of the Planning and Zoning Commission and the 1�
City Council. > I believe you are likely to see continued interest in the land north
of Rochester for high quality residential development, and I further believe we can
accommodate the development with good design. I would encourage a comprehen-
sive review of the area, determine a design approach that would allow the quality
of development you desire, and yet provide for traffic management which would not I .
inhibit Rochester Avenue as an arterial street. The secondary access issue that
will affect the continued development of the First and Rochester subdivision can
and should be identified as an issue pertinent to the plan for this area and access
to Rochester. By copy of the memorandum, I have asked the Planning staff to
identify the pertinent land development issues in the area in question, and further
identify potential design solutions incorporating traffic related issues, specific to S
Rochester.
S '
I
cc: Planning & Zoning Commission ;
Don Schmeiser
Karin Franklin
i
Also discussed was the extension of the street easterly to allow for its eventual II
connection to subdivisions to the east and to the north over land with more gradual
elopes. The connection would require that it cross a deep ravine along the eastern t
boundary of the subdivision. Filling would be required at the location of the
street, affecting the natural characteristics of the ravine to "a limited extent.
1
This memorandum is not intended to do anymore than express concerns and allow
better understanding of the wishes of the Planning and Zoning Commission and the 1�
City Council. > I believe you are likely to see continued interest in the land north
of Rochester for high quality residential development, and I further believe we can
accommodate the development with good design. I would encourage a comprehen-
sive review of the area, determine a design approach that would allow the quality
of development you desire, and yet provide for traffic management which would not I .
inhibit Rochester Avenue as an arterial street. The secondary access issue that
will affect the continued development of the First and Rochester subdivision can
and should be identified as an issue pertinent to the plan for this area and access
to Rochester. By copy of the memorandum, I have asked the Planning staff to
identify the pertinent land development issues in the area in question, and further
identify potential design solutions incorporating traffic related issues, specific to S
Rochester.
S '
I
cc: Planning & Zoning Commission ;
Don Schmeiser
Karin Franklin
RESOLUTION NO.
RESOLUTION APPROVING THE PRELIMINARY PLAT OF OAKBROOKE PLACE,
A SUBDIVISION OF IOWA CITY, IOWA.
WHEREAS, the subdivider, Smith -Moreland Properties, has filed with the City Clerk, the
Preliminary Plat of Oakbrooke Place, a Subdivision of Iowa City, Johnson County, Iowa; and
WHEREAS, the Preliminary Plat and Subdivision are found to conform with.Chapter 409, Code
of Iowa (1989) and all other statutory requirements, with the exception that s dewalks along the
west sir e, f Thomas Court as required by City of Iowa City Subdivision Re utations have been
waived; an
WHEREAS, said P hand Subdivision were examined by the Planni/andZoning Commission,
which recommended that said Plat and Subdivision be acce pproved, with the
condition that sidewalksthe of Thomas, Cou be
along west side waived
i
NOW, THEREFORE, BE IT`RESOLVED BY THE CIN CO CIL OF THE CITY OF IOWA CITY,
IOWA, that said Plat and Subdivision should be and h eby are approved.
\
�i
BE IT FURTHER RESOLVED t the City Clerk o owa City, Iowa, is hereby authorized and
directed to certify a copy. of this Rsolution to th County Recorder of Johnson County, Iowa,
i
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The foregoing .resolution was moved y and seconded by at
a duly convened meeting of the City o cil of Iowa City, Iowa, held at the Civic Center in
Iowa City, Iowa, on the _ day of 1989, commencing at 7:30 p.m.
l
Upon roll call, the following vote w taken.
i
AYES: NAYS: ABSENT:
Ambrisco
f'
_ Balmer
Courtney
Horowitz
_
Kubby
Item: S-8934. Oakbrooke Place.
Date: October 19, 1989
GENERAL INFORMATION: i
Applicant:
S&M Properties -
2208 Rochester Avenue
Iowa City, Iowa 52245
Contact: John Moreland
Phone: 338-6998 j
Requested action:
Approval of a preliminary subdivision plat.
;
Purpose:
j
To permit subdividing the tract for a low-
West - Single-family Residential;
density, single-family residential
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development.
45 -day limitation period:
dwelling units per acre.
Location:
North of Rochester Avenue; south of
i
;
Ralston Creek, and east of the lots along
t
9
Bluffwood Lane.'
I
,
Size:
Approximately 13.7 acres.
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Existing land use and zoning:
Residential and undeveloped
i
pasture; ID
,t
Surrounding land use and zoning:
North - Single-family Residential;
RS -5.
East'- Undeveloped; ID -RS.
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r. , ..., :o.. 7. , S th:� .r:
ou - Re,1910us Institution and Single.
family Residential; RS -5.
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West - Single-family Residential;
File date:
a \ s
Land Use - Low-density Residential: 2-8
45 -day limitation period:
dwelling units per acre.
i
;
2,010.
t
9
ou - Re,1910us Institution and Single.
family Residential; RS -5.
West - Single-family Residential;
Land Use - Low-density Residential: 2-8
dwelling units per acre.
Development Sequence - Phase II: 2,000-
;
2,010.
September 28, 1989.
November 13, 1989.
i
SPECIAL INFORMATION:
Public utilities:
Public services:
2
Municipal water and sanitary sewer
services are presently available.
Police and fire protection and sanitation
services will be provided by the City.
Transit service is available on Rochester
Avenue. Hoover Elementary School will
provide primary education to the area.
Transportation: Vehicular access to the subdivision is
proposed via a cul-de-sac street which i
interests with Rochester Avenue.
Physical characteristics: The topography of the site ranges from j
moderately.. sloping. (5-9 percent), to
steeply sloping (18-25 percent) with much
of the site having slopes of at least 14
percent. The tract is grass -covered; trees
line the drainageways. `
BACKGROUND: I! ,
The subject tract is a steeply sloped parcel of land in eastern Iowa City. A house and a barn
are presently located in the southwest portion of the tract." The balance of the site has been !
used as a pasture. The developer proposes to subdivide the approximate 13.7 acre parcel into
!
18 single-family residential lots, Sixteen of the proposed lots front on a cul-de-sac street .•:
which extends Into the subdivision and intersects with Rochester Avenue. The remaining two
lots within the subdivision front only on Rochester Avenue, The preliminary plat of Oakbrooke )'
i.'
Place has been reviewed for its compliance with applicable regulations; plat deficiencies and
discrepancies are listed at the end of this report. Certain issues raised by the proposed
development are described In the following analysis.
ANALYSIS:
Zoning Ordinance Compliance:
The Commission Is presently considering rezoning the Oakbrooke Place tract from ID -RS to
RS -5, the Low -Density Single -Family Residential Zone. The proposed subdivision complies with
the dimensional requirements of the RS -5 zone.
Subdivision Regulations Compliance:
Environmental Considerations: The purpose of the City's Subdivision Regulations Is to
provide for the harmonious development of the community which will tend to create conditions
favorable to health, safety and general welfare. Regulating subdivision design ensures that new
development will respect the site environment, give appropriate consideration to the scale and gg
character of the existing neighborhood and, in general, be an asset to the community. p
!I
/959 •� i
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The physical layout of development must accommodate the dimensions of a tract of land. To
the maximum extent practicable, development should be located to preserve the natural
features of the site, to avoid areas of environmental sensitivity, and to minimize negative
Impacts on and alteration of natural features. Design alternatives on smaller tracts of land tend !
to be more limited particularly if the sites are characterized by larger areas of environmentally
fragile land.
The Oakbrooke Place tract is topographically rugged. Although the southwest corner of the j
tract is only moderately sloping, the contours on the preliminary plat show, and The Soil Survey
of Johnson County, Iowa confirms, that the parcel contains slopes that exceed 25 percent. k
Slopes of 14 to 18 percent characterize the western portion of the tract; however, the eastern
part of the tract contains land with slopes over 25 percent. These features challenge the I
deveiopability of the subject parcel.
Except for the deficiencies and discrepancies listed at the end of this report, the preliminary II I
plat of Oakbrooke Place is in technical compliance with the standards and specifications of the j!
City's Subdivision Regulations. In conformance with the City's policy "...to preserve and protect j
environmentally fragile areas,' however, consideration should be given to reducing the number
of lots within the subdivision. Developing fewer lots on this tract will reduce the extent to
which the terrain must be altered to accommodate urban development. I
11 =
Subdivision Access: The proposed location of the Thomas Court/Rochester Avenue I
intersection relative to a curve in Rochester Avenue has been approved by the City's Public i i1 - �•
Works Department. The Public Works Department has determined that this location affords
adequate sight distance from either right-of-way.
As noted, two lots (Lots 17 and 18) within the proposed subdivision front only onto Rochester I �S
Avenue, a primary arterial street. Primary arterial streets are Intended to facilitate the safe,
uncongested flow of high volumes of traffic unencumbered by multiple, unregulated access
points. The City's Comprehensive Plan, therefore, discourages driveway access from individual
residences onto a primary arterial roadway to maximize this street's ability to efficiently carry
traffic.
i
To limit the impact of driveway access onto Rochester Avenue, the subdivider proposes a
single common access drive for Lots 17 and 18. While this alternative reduces the Impact of
this particular subdivision on Rochester Avenue, this "solution," if applied along the balance of
the undeveloped Rochester Avenue frontage, would undermine the ability and purpose of
Rochester Avenue to carry large volumes of traffic in an unimpeded manner.
To resolve this Issue, staff recommends that a 16 -foot wide common access drive be I
established across the front of Lots 16 and 17 from Thomas Court to Lot 18. In a residential
zone, lots abutting a primary arterial street such as Rochester Avenue are required to provide
a front yard of 40 feet. Lots 16, 17 and 18 must, therefore, provide front yards 40 feet in depth j
along Rochester Avenue. A 16 -Toot wide common access drive across Lots 16 and 17 and
parallel to the Rochester Avenue right-of-way is not expected to significantly diminish the ability
of a deeper front yard to buffer the effects of primary arterial street traffic.
I
4
Roadway Design: Thomas Court is a proposed cul-de-sac street that slopes downhill from
its intersection with Rochester Avenue. Cul-de-sac streets which slope downhill from the
intersecting street are generally not recommended due to the difficulty of egressing a
development from these streets in Inclement weather. While other streets near the proposed
subdivision may have slopes exceeding those proposed for Thomas Court, these streets, unlike
a cul-de-sac street such as Thomas Court, allow sufficient "run" to permit motorists to generate
the momentum required to climb these slopes under certain conditions.
Because a reduction in street grade would result in further degradation to the environment, the
future connection of Oakbrooke Place to residential development to the east should be
provided. The preliminary plat of this subdivision should be amended to show extension of
a road from the Thomas Court turnaround to the eastern boundary of the development. As
development east of this tract occurs, this roadway would offer an alternate means of
accessing or leaving the subdivision, particularly at times when exiting the addition would be
prevented altogether, as with icy conditions.
While the proposed location of Thomas Court will require altering the terrain the least,
significant grading will have to occur to achieve the 7.8 percent maximum grade proposed
by the developer for this roadway. The attached profile of the existing terrain in the vicinity of
the proposed alignment of Thomas Court shows the extent to which the terrain must be altered
to achieve the slopes proposed by the preliminary plat. Soil will have to be removed to
achieve the 7.8 percent slope proposed and a considerable amount of fill will be required to
elevate the turnaround portion of the street to the level of the rest of the street and to achieve
the grades proposed along the Thomas Court turnaround. Consideration should be given,
within the confines of the standards and specifications of the Subdivision Regulations, to more
closely follow the contours of the existing terrain.
Sanitary Sewer Easement: The developer proposes to provide sanitary sewer service to
Oakbrooke Place by connecting to the sanitary sewer serving residential development to the
north. The subdivider has entered Into a private easement agreement with the owner of
adjoining property to the north to construct an eight Inch public sanitary sewer line within a
20 foot wide easement along the westerly portion of the adjoining property. Because the City
will maintain this public sewer in the future, the City should also be a party to this easement
agreement. This agreement should be submitted along with other legal documents which
accompany the final plat application for Oakbrooke Place. The subdivider should also be
aware of his responsibility, during construction of the sanitary sewer, to protect or reconstruct
a storm sewer presently located In this easement area
The plat shows that provisions have been made to assure that the proposed sewer line which
is to connect to a manhole In Lot 53 of First and Rochester, Part 11 will be centered in the
easements provided. These provisions address the concerns outlined in the attached letters
from J. Merle and Eleanor R. Trummel, dated October 4, 1989.
Stormwater Management: Due to the subdivision's proximity to Ralston Creek, a stormwater
detention basin must not be constructed within the development. In lieu of this stormwater
management mechanism, however, drainageways are proposed within the development that
are capable of accommodating the 100 -year flow. The Engineering Division of the Public
Works Department notes that, depending upon the construction drawings and calculations
submitted prior to submission of the final plat for this subdivision, additional stormwater Intakes
i
0
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4
Roadway Design: Thomas Court is a proposed cul-de-sac street that slopes downhill from
its intersection with Rochester Avenue. Cul-de-sac streets which slope downhill from the
intersecting street are generally not recommended due to the difficulty of egressing a
development from these streets in Inclement weather. While other streets near the proposed
subdivision may have slopes exceeding those proposed for Thomas Court, these streets, unlike
a cul-de-sac street such as Thomas Court, allow sufficient "run" to permit motorists to generate
the momentum required to climb these slopes under certain conditions.
Because a reduction in street grade would result in further degradation to the environment, the
future connection of Oakbrooke Place to residential development to the east should be
provided. The preliminary plat of this subdivision should be amended to show extension of
a road from the Thomas Court turnaround to the eastern boundary of the development. As
development east of this tract occurs, this roadway would offer an alternate means of
accessing or leaving the subdivision, particularly at times when exiting the addition would be
prevented altogether, as with icy conditions.
While the proposed location of Thomas Court will require altering the terrain the least,
significant grading will have to occur to achieve the 7.8 percent maximum grade proposed
by the developer for this roadway. The attached profile of the existing terrain in the vicinity of
the proposed alignment of Thomas Court shows the extent to which the terrain must be altered
to achieve the slopes proposed by the preliminary plat. Soil will have to be removed to
achieve the 7.8 percent slope proposed and a considerable amount of fill will be required to
elevate the turnaround portion of the street to the level of the rest of the street and to achieve
the grades proposed along the Thomas Court turnaround. Consideration should be given,
within the confines of the standards and specifications of the Subdivision Regulations, to more
closely follow the contours of the existing terrain.
Sanitary Sewer Easement: The developer proposes to provide sanitary sewer service to
Oakbrooke Place by connecting to the sanitary sewer serving residential development to the
north. The subdivider has entered Into a private easement agreement with the owner of
adjoining property to the north to construct an eight Inch public sanitary sewer line within a
20 foot wide easement along the westerly portion of the adjoining property. Because the City
will maintain this public sewer in the future, the City should also be a party to this easement
agreement. This agreement should be submitted along with other legal documents which
accompany the final plat application for Oakbrooke Place. The subdivider should also be
aware of his responsibility, during construction of the sanitary sewer, to protect or reconstruct
a storm sewer presently located In this easement area
The plat shows that provisions have been made to assure that the proposed sewer line which
is to connect to a manhole In Lot 53 of First and Rochester, Part 11 will be centered in the
easements provided. These provisions address the concerns outlined in the attached letters
from J. Merle and Eleanor R. Trummel, dated October 4, 1989.
Stormwater Management: Due to the subdivision's proximity to Ralston Creek, a stormwater
detention basin must not be constructed within the development. In lieu of this stormwater
management mechanism, however, drainageways are proposed within the development that
are capable of accommodating the 100 -year flow. The Engineering Division of the Public
Works Department notes that, depending upon the construction drawings and calculations
submitted prior to submission of the final plat for this subdivision, additional stormwater Intakes
i
0
11
f
7
5
may have to be provided within the development and/or Intakes proposed on the preliminary
plat may have to be relocated.
Economic Impact: A significant portion of the subject tract Is classified by the City Assessor's
Office as agricultural land which has an assessed value of $7,450. With the existing house
located on the parcel, the tract has a total assessed value of $306,990. The City presently
generates about $2,500 in property taxes annually on this 13.7 acre tract.
1
Although rollbacks of the assessed values of residential properties and the tax levies change
from tax year to tax year, it is possible to estimate the annual tax revenue that the City would
generate by development of each lot within the proposed subdivision. Given the value of
existing residential development immediately north of the proposed subdivision, the assessed
value of a developed lot in Oakbrooke Place will approximate $200,000.
For tax purposes, the value of residential uses within this tax year are rolled back 80.6384
l�
percent of their assessed values. The City tax levy presently Imposed upon a residential use
I;
'
Is $12.02810/$1,000 of assessed valuation. Assuming a lot in the proposed subdivision is
developed and the property has an assessed value of $200,000, the amount of tax due on that
i
property this year would be approximately $1,940. If 18 lots were developed in Oakbrooke
!I
Place today,, the City would realize an annual increase in the tax base of about $34,920.
Fewer but larger lots would most likely generate at least that amount of revenue for the City.
J
No direct construction costs will be assumed by the City as a result of the proposed
i
development. Indirect costs such as garbage pickup, maintenance of streets and municipal
utilities, and police and fire protection will be incurred. With Increased residential development,
local schools, parks, the public library, the transit system, and roadways outside the
development are also affected. This subdivision is not expected, however, to Impact the City's
ability to provide these municipal services.
i
STAFF RECOMMENDATION:
Staff recommends that consideration of the preliminary plat of Oakbrooke Place be deferred
but that, upon resolution of the deficiencies and discrepancies listed below, the plat be
approved.
DEFICIENCIES AND DISCREPANCIES:
1. Establish a common access drive along Rochester Avenue by extending a 16 -foot wide
access easement across Lots 16 and 17 from Thomas Court to Lot 18.
2. Provide for the future connection of the subdivision via a roadway extension to the east
from the Thomas Court turnaround. This will facilitate emergency access to the
development at such time as the area to the east is developed
3. Identify the floodway boundaries of Ralston Creek on the plat.
ATTACHMENTS:
1. Location Map, i
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2.
Thomas Court Road Profile.
d.:
3.
Correspondence from J. Merle and Eleanor R. Trummel, dated October 4, 1989.
ACCOMPANIMENT:
1.
Preliminary Subdivision Plat - Oakbrooke Place,
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,
Approved by
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naldSchmeiser Dire r
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apartment of Planning and
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Program Development
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LOCATION MAP
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2725 Hickory Trail
Iowa City, Iowa 52245
October 4, 1989
1
proposed Subdivision near .the Thompson house in the zbuu o1ocK of
Rochester Avenue, Iowa City.
It is our opinion that the rough plan for the sanitary sewer con-
nection for this subdivision calls for the new sewer connection to
" cross:our'lot in an area not in the sewer easement. The only ease-
ment.entering our lot is from the east. Our lot is #53 of First
and Rochester, Part II.
T—. AGz .—A
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- lccAtlVED
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OCT 0 41989
7 , 1
P.P.D. OENARTMENT
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[, RESOLUTION NO. 89-264
RESOLUTION APPROVING THE PRELIMINARY AND FINAL LARGE SCALE NON-RESIDENTIAL
DEVELOPMENT PLAN FOR THE MERCY HOSPITAL MRI PROJECT AT 500 MARKET STREET.
WHEREAS, the owner, Mercy Hospital, has filed an application for approval of a preliminary
and final Large Scale Non -Residential Development Plan for an expansion of the hospital to
house a magnetic resonance imaging suite; and
WHEREAS, the Department of Planning and Program Development and the Public Works Department
have examined the preliminary and final Large Scale Non -Residential Development Plan and have
recommended approval of same; and [
WHEREAS, the preliminary and final Large Scale Non -Residential Development Plan has been
k examined by the Planning and Zoning Commission and after due deliberation the Commission has
k'
H recommended that it be accepted and approved, subject to approval of easement documents, and
WHEREAS the easement documents have been approved; PP d; and
WHEREAS; the preliminary and final Large Scale Non -Residential Development Plan for the Mercy
Hospital MRI Project is found to conform with all the pertinent requirements of the
ordinances of the City of Iowa City, Iowa. I(
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
1. That the preliminary and final Large .Scale Non -Residential Development Plan. for. the ,
Mercy Hospital MRI Project at 500 Market Street is hereby approved:'
City Clerk of he
2. That the Cit t
1 City is hereby authorized and directed to certify the I -�
r approval of the resolutionandsaid plan; the owner shall record said plan at the ;
office of the County Recorder of Johnson County, Iowa, before the issuance of any
building permit is authorized. .....,,.M.
X Courtney
X Horowitz
X Kubby
■
OR i
Appro ed as o F rm
ATT EST:�j��PC�/.�
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CITY CLERK ERKldGZ— Legrtment
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77
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STAFF REPORT
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To: Planning & Zoning Commission
Prepared by: Karin Franklin
iv
Item: S-8938. Mercy Hospital MRI Project
Date: November 2, 1989
I(
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GENERAL INFORMATION:
'
Applicant:
Mercy Hospital
500 Market Street
a
.
Iowa City, Iowa 52240
r
Requester! action:
l
`
Approval of a preliminary and final Large
Scale Non-Residential Development plan.
'
Purpose:
d '
To expand the hospital.
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Location:.-
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500 Market Street,
tr,
Site: Approximately 3
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j k
P
acres,
Expansion Project: 8,107 square feet.
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Existing land use and zoning:
.: .
Hospital parking area; C0-1,
Surrounding land use and zoning:
North - Residential,
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t\mss f ^/ r
Medical Offices;
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CO-1.
, 111
East - Hospital;
tal; CO.1.
South - ' Residential; Hospital Parking;
CO-1 and CB-2.
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- West - Office, Tavern; CO-1 and
2.
Comprehensive Plan:
Commercial Office.
`4
date: File
j ti y
October 13, 1989.
,
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45-day !imitation period:
November 27 1989.
SPECIAL INFORMATION:
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Public utilities:i1
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Municipal walar nnrl cenb .<. ,.,....�. ___
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Public services: Police and fire protection are provided
by the City. Sanitation services are
+(
privately provided. Transit service is
available on Market Street.
Transportation: Access to the site is from Bloomington
Street.
Physical characteristics: The expansion site is relatively flat with
the parking area sloping to the south.
I
ANALYSIS:
L,; .
f.;
Mercy Hospital proposes an 8,107 square foot expansion on the west side of the hospital over
an existing parking area near the emergency room. The addition will house a Magnetic
Resonance Imaging Suite associated with the hospital's Radiology Department. An amended
Large Scale Non -Residential Development
lan iChaptered since addition is larger than that
I
permitted ch27-44(c�the
as m nodnge undo
he Code;
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'final
The preliminary andplan submitted!complies with the Large Scale Non -Residential
"
Development requirements and with the Zoning Ordinance.
f
STAFF RECOMMENDATION:
The stall recommends that upon resolution of the deficiency noted below, the
preliminary and
final Large Scale Non -Residential Development pian for. Mercy: Hospital MRI Protect be
4'�.}'•!
'
approved.
DEFICIENCY:
I ,
1. Easement documents should be submitted granting a temporary 15 foot easement for
r
the relocated sanitary sewer line, a future 15 foot easement for the proposed sanitary
sewer line to the south, and an easement over the storm sewer.
ATTACHMENTS: I
1. Letter from Roger Garrett dated October 13, 1989.
I
Y „
ACCOMPANIMENT: 1
1. Preliminary and final Large Scale Non -Residential Development plan.
"
"
Approved by:
Donald Schmelser, D!rector
is
Department of Planning and
Program Development
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Mercy Hospital
'
'
500 Merkel Slreel . Iowa Cdy, IA 52240
(319) 337-0500
October 13, 1989
Ms. Karen Franklin
Senior Planner
'
City of Iowa City
riGEltt
wi
410 E. Washington Street
Iowa City, Iowa 52244 OCT j 3 19c-
`
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RE Magnetic Resonance Imaging Suite P.P.D. DEPAR tv,L,
Mercy Hospital
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Dear Ms Franklin:
Mercy Hospital intends to build a one-story addition (with basement) to
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house,a Magnetic Resonance Imaging .Suite on the westsideof the existing
_.
many.'`.-� f
building. The Magnetic Resonance: Imager. is a piece of diagnostic
1 `�
equipment that will supplement the Hospital's present Radiology,
Department. The new addition will be approximately 4,054 square ft
feet on
two: floors.
The proposed locatiod will bccu the ezistin emer enc
Py 9 9 y lot.,
(brtnx��SY' qY
Parking
The adjacent existing physician parking lot to the southeast will be
fie. tr k , _,,.•,
modified and will: exit onto Market Street becoming the new
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parking lot. emergency
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The Hospital presently owns about 80% of the property necessaryto
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construct the MRI addition and is presently in the process of urchasing
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the'remaining 20% necessary (approximately 60 feet of the existing
�
vacated alley) from the City for the addition.
Construction is to begin the week of October 16, 1989, with the scheduled
completion date being April 1, 1990.
,
It, is our understanding from conversation between John Williams -Bey of
Hansen Lind, Meyer, Dick Frantz of the City Building Inspector's Office
n
and Dan Schmeiser, Urban Planning Director, that a temporary building
permit will be issued allowing construction on this project to begin
before the final LSNRD submittal is approved.
Sincerely,
Roger.. D. Garrett
Senior Vice President
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John Williams -Bey, HLM
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aflnwe of Mereycenler Iowa Cln.
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hospital's attorney; these; documents are being reviewed by the Planning, Legal, arid
- °Engineering staffs. "- Preliminarily ;"it'appearsthat these documents are -in order: The staff
recommends that the LSNRD for the Mercy Hospital MRI project be approved subject to final
legal approve of the easement documents.
bj/pct
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ATTEST: jde eerZ neAm
05
RESOLUTION NO. 89-266
Legal Department
�F.
14
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO
ATTEST THE RELEASE OF LIEN REGARDING A PROMISSORY NOTE FOR PROPERTY
i
ATTEST: jde eerZ neAm
05
RESOLUTION NO. 89-266
Legal Department
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO
ATTEST THE RELEASE OF LIEN REGARDING A PROMISSORY NOTE FOR PROPERTY
;r
LOCATED AT 528 RUNDELL
WHEREAS, on November 10, 1987, the property owners at 528 Rundell Street
executed a promissory note to the City of Iowa City in the amount of $3,000.00
!'
for value received by way of a Housing Rehabilitation loan, and
V,
WHEREAS, said promissory note provided a lien against subject property, and
WHEREAS, the property owners have used only a portion of the loan and that the
f
portion used ($2,650.00) was paid in full on October 31, 1989.
)'
NOW; THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, that the Mayor is authorized to sign and the City Clerk to attest the
attached Release of Lien, whereby the City does release the affected property
("
from an obligation of the property owners at 528 Rundell Street to pay to the
City the principal amount of $3,000.00.
F
It was moved by Ambrisco and seconded by Courtney the
Resolution be adopted, and upon roll call there were:
°.,..
AYES: NAYS: ABSENT:
i
ATTEST: jde eerZ neAm
05
err, CCITTYY CLERK
Legal Department
16
RELEASE OF LIEN
.0, KNOW ALL MEN BY THESE PRESENTS:
That the City of Iowa City does hereby release the following -described property:
Lot 8 In Block 10 in Rundell, Johnson County, Iowa, according to the recorded
plat thereof
from an obligation of the property located at 528 Rundell Street to the City of Iowa City, Iowa,
In the principal amount of $3,000.00 represented by a Statement of Life Lien recorded in the
Office of the Johnson County Recorder on November 10, 1987, In Book 987, page 46.
This obligation has been paid In full and the lien Is hereby released.
CITY OF IOWA CITY, IOWA
Bv: L.4'x
STATE OF IOWA
) SS:
JOHNSON COUNTY
On this, 14th day of November A.D. 19 89 before me the
undersigned, a Notary Public In and for said County, In said State, personally appeared John
McDonald and Marian K. Karr, to me personally known, who being by me duly sworn, did say
that they are the Mayor and City Clerk, respectively, of said municipal corporation executing
ad thereto Is the seal of said corporation
the within and foregoing Instrument; that the seal affix
by authority of Its City Council; and that the said John McDonald and Marian K Karr as such
officers acknowledged the execution of said Instrument to be the voluntary act and deed of
said corporation, by It and by them Voluntarily executed.
ma
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STATE OF IOWA
) SS:
JOHNSON COUNTY
On this, 14th day of November A.D. 19 89 before me the
undersigned, a Notary Public In and for said County, In said State, personally appeared John
McDonald and Marian K. Karr, to me personally known, who being by me duly sworn, did say
that they are the Mayor and City Clerk, respectively, of said municipal corporation executing
ad thereto Is the seal of said corporation
the within and foregoing Instrument; that the seal affix
by authority of Its City Council; and that the said John McDonald and Marian K Karr as such
officers acknowledged the execution of said Instrument to be the voluntary act and deed of
said corporation, by It and by them Voluntarily executed.
ma
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Resolution
No. 89-267
;..
Page 2
Passed
and approved this 14th day of November
1989.
OR
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ATTEST:
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Department
CI1111 CLERK Legal
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FEE FILEi. D ND U
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6911OV27 PH 1:09
�7 PERMANENT SANITARY SEWER EASEMENT,
TEMPORARY CONSTRUCTION EASEMENT, AND COVENANT
THIS AGREEMENT, made and entered into by and between Hawkeye Land Company,
hereinafter referred to as "GRANTOR" and the City of Iowa City, Iowa, a municipal
corporation, hereinafter referred to as "CITY."
IT IS HEREBY AGREED AS FOLLOWS:
1. The UNDERSIGNED Grantor states and covenants that it is lawfully seized
and possessed of the real estate described and/or shown in Exhibit A
attached hereto, and that it has a good and lawful right to convey this
easement.
2. In consideration of $2,000 and the mutual covenants herein, GRANTOR hereby
grants and conveys to the CITY an exclusive Permanent Easement for the
purposes of constructing, operating, maintaining, repairing, using,
reconstructing and replacing sanitary sewers and appurtenances in, over
and across certain real estate owned by Grantor, and described and/or shown
on Exhibit A.
3. Grantor also hereby grants and conveys to the City a Temporary Construction
Easement in, over and across that portion of Grantor's property described
and shown in Exhibit A. Said Temporary Construction Easement is for the
purpose of facilitating the construction of the sanitary sewer, and shall
include necessary excavation, piling of dirt, storage of materials and
equipment, and ingress and egress of persons and equipment to complete
construction.
4. The term of the Temporary Construction Easement will be for the period of
time required by the City to complete the construction of the sanitary
sewer, but in no event shall the duration of the Temporary Construction
Easement extend beyond July 1, 1991.
5. With respect to the Easements described in Paragraph 2 and 3 hereof:
(a) The CITY shall have the right to make excavations within the area
.of the easements, and to grade as it may find reasonably necessary
for the construction, operation, repair, maintenance and
reconstruction of the sanitary sewer. The City covenants and agrees
to protect such excavations during construction, and to promptly fill
same following construction.
(b) The CITY shall have the right to trim and remove all trees and bushes
which may interfere with the exercise of the CITY's rights pursuant
to this Easement. However, if valuable timber is removed, it shall
continue to be the property of the Heartland Rail Corporation'. The
City covenants and agrees that existing driveways; sidewalYs,.fences,
trees, shrubbery or other site features which are removed or
disturbed to permit construction shall be replaced tq.confdrm with
the sections or items removed. •' 1 '�_
All grassed areas disturbed by the _ instal)atioA.; repay. or
maintenance of the sanitary sewer shall be rase5eded.
(c) The. City covenants and agrees to remove anZ gckpfle P ting
topsoil from areas to be excavated to a minimum dep£h of six ihches.
Following installation of the sanitary sewer, said topsoil sha11 be
replaced and respread'over excavated areas, and all other areas
within the easement limits which are disturbed will be restored to
their original elevations.
(d) The CITY shall have the right of ingress and egress to and from the
easement areas by such route as shall occasion the least practical
damage and inconvenience to the GRANTOR, Heartland Rail Corporation,
or Iowa Interstate Railroad, Ltd.
(e) The City covenants and agrees to provide Iowa Interstate Railroad
Ltd. and to anysuccessor operating entities, 72 hours notice prior
to the commencement of construction, repair, routine maintenance,
reconstruction, or replacement of the sewers located within the
0bo51093 r".. j69
197ILI
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permanent easements. Such notice shall be given orally by telephone
or by ordinary mail to the local dispatcher or other designated agent
for the operating entity. In the event of an emergency requiring
immediate repair or maintenance, the City shall be entitled to
immediate access, and shall immediately notify the dispatcher by
telephone. For purposes of this provision, it is assumed and agreed
z that a dispatcher shall be available by telephone at all times. In
the event that a dispatcher is not available by telephone, notice
shall be deemed given when mailed.
6. The GRANTOR reserves the right to use the real estate above-described for
r purposes which shall not interfere with the CITY's or public's full
enjoyment of the rights granted in this easement; provided, however,
j (a) Heartland Rail Corporation and Iowa Interstate Railroad Ltd., and
ftheir heirs, successors and assigns, shall continue to have the right
C to operate a railroad or railroads upon said property, including the
right to replace or repair trackage, or to install additional
trackage thereon.
(b) GRANTOR, their heirs, successors and assigns shall continue to have f
the right to utilize the surface and subsurface areas of the railroad
right-of-way for the construction, installation, erection, 4
reconstruction, reinstallation, re -erection, relocation, maintenance,
removal, repair, replacement, use and operation of transportation
and transmission systems for all and every type of fluids, gases, 1.
resources, materials, products, communications and energy by whatever
means, including, without limitation, overhead conveyors, pipelines,
telephone, radio, radar or laser transmission systems, wire, cable,
fiber, fiber-optic, utility, energy and power transmission lines or
conduits of every kind and character together with all necessary
supporting structures and devices which may be constructed, erected
or installed on, in, under, over, above, across and along all or any
_ portion of the Property_
to the extent that said uses do not disrupt or interfere with the Easement
rights herein granted to the City;
7. GRANTOR shall not erect or construct any building or other structure, or
drill or operate any well, or construct any reservoir or other obstructions
within the Easements noted in Paragraphs 2 and 3 above. Nor shall GRANTOR
allow or cause any substantial fill or cut over said Easements without the
consent of said CITY, which consent shall not be unreasonably withheld.
8.In the operation, maintenance, repair, or replacement of its sewers, City ,
shall not unreasonably interfere with the use, operation or maintenance
of the surface of:property for railroad purposes, as owned and/or leased
by Heartland or Iowa Interstate, their heirs, successors, and assigns.
9. The CITY shall indemnify GRANTOR, Heartland Rail Corporation, and Iowa
Interstate Railroad, Ltd. against any loss or damage'which may occur in
the exercise of the Easement rights by the CITY, except for ,loss which.may
be occasioned by a diminution in business during the temporary use of the ;
area for construction, repairs, maintenance and/or construction.
10. The provisions hereof shall inure to the benefit of and bind the successors
and assigns of the respective Parties hereto, and all covenants shall apply
to and run with the land and with title to the land. These Easements shall
be recorded at the time off execution. �yq
Dated this 2�day of
a
DOOKIO93 Pc,: 370
a.
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3
j HAWKEYE LAND COMPANY, a corporation
i
! organized and existing under the laws
of the State of Iowa
s GRANTOR
4
By:
(
i
j� Rick Stickle, President
-
i
CORPORATION ACKNOWLEDGEMENT
t
Z; STATE OF IOWA )
'
SS:
LINN COUNTY)
4
On this 27th day of November 19 89 before me, the
undersigned a Notary Public in and for the State of Iowa, personally appeared
gtg
Rick Sticile XXd to me known, who
S
being by me duly sworn, did say that Shed[ is the President
t ;GydC of the corporation executing the
?
foregoing instrument; that (no seal has been procured by) XXkem aatlxXXRb "
ElibtXSicxi{ XX9Xs%Ux6f0Xthe corporation; that said instrument was signedx*M
idd{e1XV1 On behalf of the corporation by authority of its Board of Directors; that
t the said Rick Stickle xrx&
acknowledged the execution of the instrument to be the voluntary act and deed
f
f
of the corporation, by it and by him voluntarily executed.
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(nn 71 / S� ni2oti)
4 SKIM M.BRINKER Neta `y Pub if in and for the State of Iowa
'
MY COMM15810N E%FI EB
1a-31-R�
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GRANTEE'S ACCEPTANCE:
THE CITY OF IOWA CITY, IOWA, GRANTEE
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By
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STATE OF IOWA
SS:
JOHNSON COUNTY )
{
On Y of 19_before me,
a Notary Public in and for the State of
i
Iowa, personally appeared .3TeF�jW �Tt�VS to me, personally
known, and, who, being by me duly, sworn,, did say that he) IKKQ is the pgNW) f
(City'Manager) of the City of Iowa City, Iowa; that the instrument was signed
on behalf of the corporation, by authority of its City Council, as'contained in
Resolution No. 89-267 adopted', by the City Council on the 14th' day
of November -, 19 89 and .that Stehen Atkins
acknowledged the execution of the instrument to be (his (1iY voluntary act and
deed and the voluntary, act and deed of the corporation, by it voluntarily
executed.
Notary Public in and for:the State of Iowa
e
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4
NOTARIAL SEAL
NORTH
SCALE: 1"=50'
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Exhibit A, Page 1
R.O.W. 160' 36.5'
9A
SOUTHWEST CORNER, BLOCK 10,
EAST IOWA CITY ADDITION
541' WEST AND 50' NORTH OF MILE
MARKER 1235,. IOWA INTERSTATE R. R. �'..
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PROPOSED TEMPORARY
CONSTRUCTION EASEMENT Q .
PROPOSED
'PERMANENT EASEMENT
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EXISTING 20',SANITARY SEWER
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NORTH
SCALE: 1"=50'
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Exhibit A, Page 1
R.O.W. 160' 36.5'
9A
SOUTHWEST CORNER, BLOCK 10,
EAST IOWA CITY ADDITION
541' WEST AND 50' NORTH OF MILE
MARKER 1235,. IOWA INTERSTATE R. R. �'..
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PROPOSED TEMPORARY
CONSTRUCTION EASEMENT Q .
PROPOSED
'PERMANENT EASEMENT
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EXISTING 20',SANITARY SEWER
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PLAT OF PROPOSED EASEMENTS t
aw 1093 FF,: 372
SYCAMORE VIEW SANITARY SEWER CONSTRUCTION
ON IOWA INTERSTATE RAILROAD RIGHT-OF—WAY
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PLAT OF PROPOSED EASEMENTS t
aw 1093 FF,: 372
SYCAMORE VIEW SANITARY SEWER CONSTRUCTION
ON IOWA INTERSTATE RAILROAD RIGHT-OF—WAY
Exhibit A, page 2
DESCRIPTION OF PER14ANEIIT EASEMENT
Commencing at a point which is the southwest corner of Block 10
in the East Iowa City Addition to Iowa City, Iowa, said point
lying on the northerly Right -of -Way line of the Iowa Interstate
Railroad, 541 feet west and 50 feet north of railroad, mile marker
0235; thence south along the easterly Right -of -Way line of Second
-Avenue extended to a point of intersection with a line which lies
10 feet southwesterly of and parallel to the notherly Right -of -
Way line of the Iowa Interstate Railroad, said point being the
Point of Beginning; thence northwesterly along a line which lies
10 feet southwesterly of and parallel to the northerly Right -of -
Way line. of the Iowa Interstate Railroad to a point of
intersection with the easterly line of a 20 foot wide Permanent
Maintenance Easement as recorded in Book 1054, Pages 296 to 298,
at the Johnson County Recorder's Office, Johnson County, Iowa;
thence southwesterly 20 feet along the east line of said
Maintenance Easement to a point which lies 30 feet southwest of
said Railroad Right -of -Way line; thence southeasterly along a
line which lies parallel to and 30 feet southwest of said
Railroad Right -of -Way line to a point which lies 244 feet east of
said Second Avenue centerline extended; thence north along a line
which lies parallel to and 244 east of said Second Avenue
centerline extended to a point of intersection with the northerly
Right -of -Way line of the Iowa Interstate Railroad, said line also
being the south line of Block 10 in the East Iowa City Addition;
thence northwesterly along said Right -of -Way line to a point
which lies 224 feet east of said Second Avenue centerline
extended; thence south along a line which lies parallel to and
224 feet east of said Second Avenue centerline extended to a
point which lies 10 feet southwest of said Railroad Right -of -Way
line; thence northwesterly along a line which lies parallel to
and 10 feet southwest of said Railroad Right -of -Way line to the
Point of Beginning.
DESCRIPTION OF TEMPORARY CONSTRUCTION EASEMENT
Beginning at a point which is the southwest corner of Block 10 in
the East Iowa City Addition to Iowa City, Iowa, said point lying
on the northerly Right -of -Way line of the Iowa Interstate
Railroad, 541 feet west and 50 feet north ofrailroad mile marker
0235; thence northwesterly along said northerly Right -of -Way line
of the IowaInterstate Railroad to a point of intersection with
the east line of a 20 foot wide Permanent Maintenance Easement as
recorded in Book 1054; Pages 296 to 298, it the Johnson County
Recorder's Office,- Johnson County, Iowa; thence southwesterly 40
feet along the east line of said Maintenance Easement to a point
which lies 40 feet southwest of said Railroad Right -of -Way line;
thence southeasterly along a line which lies parallel to and 40
feet southwest of said Railroad Right -of -Way line to a point
which 'lies 254 feet east of said Second Avenue centerline
extended; thence north along a line which lies parallel to and
254 feet east of said Second Avenue centerline extended to a
point of intersection with said railroad Right -of -Way line;
thence northwesterly along said railroad Right -of -Way line to the
Point.of Beginning.
BDGK J093 F.,: 373
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City of Iowa City
MEMORANDUM
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Date: February 7, 1990
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The Honorable Mayor John McDonald
IfTo:
Marian K Karr, City Clerk 9
From: Linda Newman Gentry, Acting City Attorney
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Re: Final Execution of Documents - Iowa City Can Mfg. Company Economic
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Development Package
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Sometime ago, the City Council authorized the Mayor. and City Clerk to execute the CEBA
Agreement with the State, Iowa City Can Mfg. Company and the City; together with Promissory
Notes 1 and 2 attached to the CEBA Agreement. The resolution also authorized the Mayor
and City Clerk to execute a promissory note, loaning Iowa City Can $50,000; and lastly, the
resolution authorized signing a mortgage on the Iowa City Can building owned by Michael
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Development.
The CEBA Agreement has been changed, as have the Promissory Notes 1 and 2 attached to
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the CEBA Agreement since the document handed to you by me sometime ago. i thus wish
you to substitute the existing version, which is a much Improved version, with no substantial
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changes with respect to the City's interest. Indeed, thanks to Mr. Jim Wisby of the Iowa
Attorney General's Office, the document Is a much better, cleaner and clearer product.
I also request that you sign the promissory note for $50,000 and the mortgage, securing
$550,00, which are already in the Clerk's possession.
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Patt Cain has done an excellent job on this project, and we look forward to having the matter
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concluded. Since the Mayor is leaving on Thursday, Patt wanted to make sure the CEBA
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Agreement and the, Promissory Notes 1 and 2 were signed before his departure. Thank you
very much for your assistance. Please do not hesitate to call me if you have any questions.
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RESOLUTION N0. 89-268
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RESOLUTION APPROVING LOAN AGREEMENTS BETWEEN THE CITY, THE
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IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE IOWA CAN
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MFG, COMPANY FOR $500,000 OF COMMUNITY ECONOMIC BETTERMENT
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FUNDS, AND FOR $50,000 FROM THE CITY'S URBAN DEVELOPMENT ACTION
GRANT REPAYMENTS, ALL MONIES TO ASSIST IN CONSTRUCTION OF A NEW
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MANUFACTURING FACILITY.
WHEREAS, the Iowa Community Economic Betterment Account (CEBA) program provides
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loans to cities to promote economic development and create long-term employment
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opportunities; and
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WHEREAS, the City is authorized to use repayments from Urban Development Action Grants
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for promotion of economic development; and
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WHEREAS, it is in the public interest to use state and local funding to encourage economic
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develoment in Iowa City, Iowa; and
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WHEREAS, the City has applied for, and obtained, a CEBA loan from the Iowa Department of
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Economic Development ("State") in the amount of $500,000 to be loaned to the Iowa City Can
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Mfg. Company ("Can Company") as provided by Chapter 99E of the Iowa Code (1989); and
WHEREAS, the State has approved the City's loan to the Can Company In an amount of
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$50,000 as an integral part of the overall CEBA loan from the State, contingent on City and
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Can Company entering Into a separate agreement.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The Loan Agreements and Promissory Notes between the City and the State, and
between the City and the Can Company, copies of which are attached hereto, are in
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the public interest to encourage economic development, and that said Agreements are
Y approved hereb a roved in form and substance.
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2. The Mayor is authorized and directed to sign, and the City Clerk to attest, the Loan
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Agreements; Promissory Notes' and attached Security Agreement, when these
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documents have been properly executed by the Can Company.
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inconsistency between the Special Conditions or the
General Conditions, and
Issuing Agency: Contract Title: Loan Agreement
Department of Economic Development Community Economic Betterment
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specifications or other
Account Loan/Forgivable Loan
part of this. Contract,
by
Community: City of Iowa City Contract Number: 89-OPP-03
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Business: Iowa City Can Mfg. Company; an Ohio joint venture partnership between
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the Special Conditions and the General Conditions shall
the Central States Can Company, a division of Van Dorn Company, and
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Silgan Containers Corporation
control. To the extent
of any inconsistency between
CEBA
and
Loan/ City of Iowa City
the General Conditions,
Forgivable Iowa City Can Mfg. Co. Project
control.
Fiscal Summary Loan Contribution Contribution Other Total
An, $200;000/ $50,000 $8,400,000 $10,373,500 $19,323,500
$300,000
Source Agency/Law: 1989 Iowa Code Section(s) 15.108(1)(F) and 99E.32(2)
Type: j Cost reimbursement
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Effective Date: November 17, 1988 Project Completion/
Job Attainment Date:
December 31, 1991
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Contract Completion Date:
April 30, 1999
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Submit requisitions to: Issue payment to:
CEBAProgram City of. Iowa City
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Department of Economic Development Civic Center
200 E. Grand Avenue 410 E. Washington St.
Des Moines, IA; 50309 Iowa City, Iowa 52240 88
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The Community and Business agree to perform all services set forth in .the 1
attached Special Conditions,' for the consideration stated herein: The rights i
and obligations :of the parties to this Contract' (sometimes also, referred to
herein as the "Agreement" or "Loan Agreement") shall be subject to and governed
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by the Special Conditions and the General Conditions. To the extent of any
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inconsistency between the Special Conditions or the
General Conditions, and
any
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specifications or other
conditions which are made`a
part of this. Contract,
by
reference or, otherwise,
the Special Conditions and the General Conditions shall
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control. To the extent
of any inconsistency between
the Special Conditions
and
the General Conditions,
the Special Conditions shall
control.
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City of Iowa City
Contract No. 89-OPP-03
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SPECIAL CONDITIONS
Article 1.0 Identification of Parties. This Contract is entered into by and
between the Department of Economic Development (hereafter referred to as the
Department), the City of Iowa City (hereafter referred to as the Community), and
Iowa City Can Mfg. Company, an Ohio joint venture partnership between the
Central States Can Company, a division of Van Dorn Company, and Silgan
Containers Corporation (hereafter referred to as the Business).
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Article 2.0 Statement of Purpose
WHEREAS, Iowa's cities, counties, and merged area schools face major
economic development problems; and
WHEREAS, the Community Economic Betterment Account Program has been created
by the Legislature to lessen these problems; and
WHEREAS, the Department has been designated to administer the Community
Economic Betterment Account Program in Iowa; and
WHEREAS, the Community has the necessary ability to develop and carry, out
community economic betterment activities, and has applied for and received ¢ i
approval for funding for the benefit of the Business; S u
THEREFORE, the Department, Community and the Business do agree as follows: I"
Article 3.0 Area Covered. The Community and the Business shall substantially
.perform all the work and services required under this Contract in relation to
the following area: 'City of Iowa City. Notwithstanding the foregoing, the
provisions of Articles 7.0, 9.6, 9.7, and 9.8 shall, be strictly adhered to.
Article 4.0 Statement of Work and Services. The Community and the Business
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shall perform in a reasonabiy saeis aci tory and proper manner, as determined by
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the Department,.the work activities and services as written and described in the
approved Community Economic Betterment Account Application Package, Attachment D
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to the'Contract. This Attachment is hereby made a part of this Contract by
reference. In addition, the Business' work activities and services shall
;
conform to the approved Budget Summary form, Attachment A to this Contract, and
the, approved Program Schedule, Attachment B to this Contract. The Program
Schedule (Attachment B) shall be prepared by the Community and Business, then
submitted for; the Department's approval prior to its attachment to this
Contract. At the time of approval, this Program Schedule (Attachment B) shall
be made a part of this Contract by reference. The Community and the Business
work activities and services to be performed in the Application Package are.
herein referred to as the "Project".
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Article 5.0 Reports and Products.
5.1 Business. The Business shall submit the following reports to the
city: ;r
Report Due Date
Program Schedule (Attachment B) Prior to the first draw of funds
City of Iowa City
Contract No. 89-OPP-03
Page 3
Quarterly Performance Report
Quarterly "Employer's
Contribution and Payroll
Re—or
uarterly Business Payroll
Re ister
Monthly Status of Funds Report 10th of every month after initial draw
until all Project funds have been repos
as expended (original and three copies;
Annual Financial Reports Within 60 days of the close of the year
end.
Final Quarterly Performance Report Within 45 days of Contract Completion
Final Status of Funds Report Within 45 days of Contract Completion
5.2 Community. The Community shall review and forward the aforementionei
reports to the Department by the 15th day of the month of receipt and
for the final reports, within 60 days after Contract. completion.
he Department reserves the right to require submission of the reports more
requently than as shown above if, in its opinion, more frequent submissions
ould help improve the CEBA project.
rticle 6.0 Designation of Officials.
6.1 Department - The Director of the Department, or his desionee, is the
Department official authorized to execute or negotiate any changes in
the terms, conditions, or amounts specified in this Contract.
6.2 Community - The Mayor is the Community official authorized to execute
any changes in the terms, conditions, or amounts specified in this
Contract. The Mayor is designated to negotiate, on behalf of the
Community, any changes to this Contract.
6.3 Business - The Plant Manager is the Business official authorized to
execute any.changes in the terms, conditions, or amounts specified in
this Contract. The Plant Manager is designated to negotiate, on
behalf of the Business, any changes to this Contract.
Article 7.0 Time of Performance. .The services of the Business are to commence
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as of the 17tay of November, 1988 and shall be undertaken in such sequence as
to assure their expeditious completion: All of the services required hereunder
shall be completed on or before December 31, 1991. However, this Contract shall
continue in effect so long as the Loan is outstanding and unpaid.
Article 8.0 Modification of General Conditions - None.
10th of the month following the end
of each Contract quarter (original
and one copy)
Within 45 days of the end of the
previous Contract quarter
Within 45 days of the end of the
previous Contract quarter
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City of Iowa City
Contract No. 89-OPP-03
Page 4
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Article 9.0 Additional Special Conditions.
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9.1 Business Certification. The Business certifies that it is an Ohio
joint venture partnership, the corporate partners of which are
authorized to do business in Iowa; that entry into the partnership and
ry:
this Contract have been approved by appropriate resolution of the
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respective boards of directors of the Business' corporate partners;
and that the official designated in Article 6.3 has the authority to
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obligate the Business pursuant to the terms of this Contract. The
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Business further certifies that it has satisfied all conditions and
requirements precedent to the award of the Contract and that there has
been no adverse change since the date the CEBA application for funding
in the financial condition, organization, operation, business
prospects, fixed properties, or key personnel of the Business. In
connection with the foregoing, the. Business has provided the
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Department with the following:
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(a) Copy of joint venture partnership agreement from which may be
deleted confidential or proprietary information not essential to
the Department's lending decision;
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(b)Current Certificates of Good Standing of the corporate partners;
(c) Certified copies of the Articles of Incorporation of the
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corporate partners;
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(d) Certificates of incumbency naming the current officers who .will
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be acting on behalf of the corporate partners;
(e) Resolutions of the boards of directors of the corporate partners
authorizing the Business' participation in this,Contract as
specified above, including, acceptance of the financial
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assistance provided for in this Contract, and execution of such
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security, instruments as may be required by the Department
pursuant to Article 9.9.7 hereof.
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9.2 -Assurances. The assurances and certifications appearing in the CEBA
appTation are incorporated herein and made a part of this Contract.
The Community and Business understand and agree that the CEBA proceeds
shall not be spent on any other purpose(s) or Project(s) than that
described in the CEBA application for funding.
9.3 Administration. The Contract shall be administered in accordance with
261 Iowa dministrative Code, Chapter 22 and all applicable State and
Federal law and regulations.
9.4 Prior Costs. 'Costs of any kind related to the Project that were
incurs before the effective date of this Contract shall not be
included as local cash resources and proceeds shall not be used to pay
for nor reimburse such costs unless approved in writing by the
Department.
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City of Iowa City
Contract No. 89-OPP-03
Page 5
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9.5
Cost Variations. In the event that the total Project cost is less
--tFe —amount
tion specified in Article 11.0 of this Contract, then for
the amount of the difference, funds shall be returned to the
Department in the same ratio as CEBA funds are to the total Project
cost as specified in Article 11.0 of this Contract.
9.6
Jobs Provided. The Business represents that it will take all actions
necessary and required to secure the accomplishment of the following
benefits to the Community:
9.6.1 That the Business cited in'the Budget Summary (Attachment A)
will create 110 full time employment positions in the City
of Iowa City, which shall be in full compliance with the job
creation requirements of this contract.
9.7
Relocation or Abandonment. The Business receiving the CEBA funds
agrees that during the contract period, it, shall not relocate the
business or jobs created to a place outside the State of Iowa or
abandon the business in the State of Iowa. Upon determination that a
violation of this provision has occurred, the Department will
determine the extent of. the violation and may demand repayment of l i
commensurate amount of the CEBA funds, up to the full amount of this',
agreement, and may levy appropriate penalties at 9% interest per
annum, accruing as of the date CEBA funds are drawn and continuing
until such date as the loan is repaid or forgiven.
9.8
Business Ownership.During the contract period, the principals of the
Business will not permit without prior written permission of the
Department any material change in the ownership structure, control, or
operation of the Business including but not limited to merger into or
consolidation with any other person, firm or corporation, changing the
nature of its business. as carried on at the date hereof, or
substantial distribution, liquidation, or other disposition of the
Business' assets; provided, however, that changes in the percentage of
ownership (including, but not limited to, the possibility of a total
F.
buyout of one partner by the other) or in the responsibilities between
the general partners of the Business may be affected without prior
written permission by, but with prior written notice to, the
Department. The Department will not approve a business ownership
change, as described above, unless the successor business first agrees
to be bound by the provisions of this Contract. If a business
ownership change takes place without the Department's prior approval,
the Department will first determine whether the successor agrees to be
bound by this Contract and has the qualifications and capability to do
so. If either determination is negative, the Department may, at its -
sole option, after exercise of reasonable discretion, recover a
portion or all of the CEBA funds from either the Business or the
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successor business, or both of them.
9.9
Conditions for Release of Funds. The following conditions must be met
prior to the release of CEBA funds to the Project:
9*9*1 Pro?TraLScheduleS(Attachment B). The Community and Business
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ta ,,pleted
Program Schedule (Attachment 8) for
the Department's approval prior to the first draw of funds.
City of Iowa City
Contract No. 89-OPP-03
Page 6
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9.9.2Em
to ment Services. Prior to the release of CEBA funds,
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documentation shat be submitted to the Department of
Economic Development indicating the Business has met with
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the Department of Employment Services (Job Service Division)
to discuss employment services available through their
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offices.
R; 9.9.3
Lender Commitment. Prior to the release of Project (non-
administration) funds to the Project, a letter from the City
of Iowa City shall be submitted to the Department committing
to loan Iowa City Can Mfg. Company $50,000. The letter
shall include the interest rate, term of the loan, payment
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schedule, as well as any other special loan conditions that
may apply.
9.9.4
Lender Commitment. Prior to the release of Project (non-
administration)
funds to the Project, a letter from the
Iowa -Illinois Gas and Electric Company shall be submitted to
theDepartment committing to loan Iowa City Can Mfg. Company
$50,000. The letter shall .include the interest rate, term
of the loan, payment schedule, as well as any other special
loan conditions that may apply.
9.9.5
In -Kind Commitment. Prior to therelease of CEBA funds,
documentation shall be submitted to the Department
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indicating an in-kind participation in the project from Iowa
City bank(s)'in the amount of $24,500.
9.9.6
Other Project Commitment. Prior to the release of CEBA
immitment
funds co sha be submitted to the Department
indicating the following participation in the Project: i
$8,400,000 Equity - Iowa City Can Mfg. Company
$7,800,000 Machinery - ALCOA
$2,499,000 Land and Building - Michael Development
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9.9.7
Securit Instruments. The parties agree the CEBA loan funds A
wi . e use to purchase specific items of personal or real:
property, or, in some instances, to finance working capital i
requirements. Prior to the release of CEBA funds, the
Business shall execute such security instruments in favor of
the Community as are.required by the Department, and the
Community shall make the necessary filing of.same, providing
the Department with copies thereof. The pledged security in
this Project will be mortgages on the Lot 1 BDI 5th Addition ?
and Lot 4 BDI 2nd Addition.
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Article 10.0 Conditions
of Payment
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10.1 Requisition
for Pa ment. All payments shall be subject to the receipt
F y t e
epartment o a -requisition for payment. The requisition shall
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Working Capital $ 0 $ 0 $ 4,700,000 $ 0 5 4,700,000 s
TOTAL $500,000 $50,000
$ 8,400,000 $10,373,500 $19,323,500
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City of Iowa City
Contract No. 89-OPP-03
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10,2 Timing of Requisitions. The Community and Business shall request
Project funds only as needed and shall never have more than $500.00 in
CEBA funds on hand for a period longer than 30 days.
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10.3 Receipt of Funds. All payments under this Contract shall be subject
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to the receipt by the Department of sufficient state funds for the
CEBA Program. The termination, reduction, or delay of said funds to
the Department shall, at the option of the Department, be reflected in
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a corresponding modification of this Contract.
Article 11.0 Project Budget
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CEBA
Loan/ City of Iowa City
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ForgivableIowa City Can Company Project
Loan Contribution Contribution Other Total
Land Acquisition $300,000 $ 0 $ 0 $ 24,500 $ 520,500
and Site Forgivable I.C. Banks'
Preparation Loan Buydown
$ 196,000 -
Michael
Development
Building $200,000 $50,000 $ 0 $ 2,303,000 $ 2,603,000
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Construction Loan, Loan Michael
Development
$ 50,000
Loan- IA -Ill
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Gas & Elect.
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Machinery and $ 0 $ 0 $ 3,700,000 $ 7,800,000 $11,500,000
Equipment Equity Alcoa
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Working Capital $ 0 $ 0 $ 4,700,000 $ 0 5 4,700,000 s
TOTAL $500,000 $50,000
$ 8,400,000 $10,373,500 $19,323,500
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City of Iowa City
Contract No. 89-OPP-03
Page 8
Article 12.0 Terms of the Loan
12.1 The Loan. The Department agrees, upon the terms and conditions
Te- einafter set forth, to make a loan in the amount of $200,000 and a
forgivable loan in the amount of $300,000 (collectively, the "Loan")
in order to assist in the financing of the Project described in the
CEBA Application Package (Attachment D to this Contract). The
obligation to repay the Loan shall be evidenced by the promissory
notes of the Community and the Business in the amount of $500,000 to
be in the form attached hereto as Attachments C1 and C2. In the event
the Community or the Business fails to requisition and spend the full
face amount of the Loan as set out herein and in said promissory
notes, then the amount of the Loan shall be reduced accordingly.
12.2 Maximum Amount of Loan. It is expressly understood and agreed that
The maximum amount to be loaned by the Department shall be $500,000.
12.3 Loan Rate. The Department, Community and Business agree that all
funds oaned shall be at an interest rate of five percent per annum on
the $200,000 loan and nine percent per annum on the $300,000
forgivable loan for years four and fiver
12.4 Loan Term. The Department, Community and Business agree that the term
shaT1 :7be ten years on the $200,000 loan with annual payments as set
forth in Attachments C1 and C2. The term shall be five years on the
$300,000 forgivable loan with no principal or interest payments or
accruals for years one through three. At the conclusion of the three
year project period, $2,727 will be forgiven for each new job created
Any balance will be amortized over the remaining two year period at
nine percent interest per annum with annual payments.
12.5 Prepayment of Loan. The outstandina principal of the Loan ma be
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12.6 Promissory Note Required. The Department shall not provide Loan funds
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Attachments C1 and C2 to this Contract.
12:7- Rea ent Schedule. Repayment of the Loan shall be made as specified
in ttaciments C1 and C2, the Promissory Notes.
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ARTICLE 13.0 Loan Default
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13.1 Default. If any of the following events ("Event of Default") shall
occur and be continuing, the Department may declare the Loan to be in
default:
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13.1.1 Any representation or warranty made by the Community or the
Business under or in connection with .this Contract shall
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prove to have been incorrect in any material respect when
made and cannot be reasonably cured without harm to the
Department within thirty (30) days of written notice to cure
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given by the Department or, if curable and cure is commenced
within said thirty (30) day period,cure has not been
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effected within ninety (90) days; or
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City of Iowa City
Contract No. 89-OPP-03
Page 8
Article 12.0 Terms of the Loan
12.1 The Loan. The Department agrees, upon the terms and conditions
Te- einafter set forth, to make a loan in the amount of $200,000 and a
forgivable loan in the amount of $300,000 (collectively, the "Loan")
in order to assist in the financing of the Project described in the
CEBA Application Package (Attachment D to this Contract). The
obligation to repay the Loan shall be evidenced by the promissory
notes of the Community and the Business in the amount of $500,000 to
be in the form attached hereto as Attachments C1 and C2. In the event
the Community or the Business fails to requisition and spend the full
face amount of the Loan as set out herein and in said promissory
notes, then the amount of the Loan shall be reduced accordingly.
12.2 Maximum Amount of Loan. It is expressly understood and agreed that
The maximum amount to be loaned by the Department shall be $500,000.
12.3 Loan Rate. The Department, Community and Business agree that all
funds oaned shall be at an interest rate of five percent per annum on
the $200,000 loan and nine percent per annum on the $300,000
forgivable loan for years four and fiver
12.4 Loan Term. The Department, Community and Business agree that the term
shaT1 :7be ten years on the $200,000 loan with annual payments as set
forth in Attachments C1 and C2. The term shall be five years on the
$300,000 forgivable loan with no principal or interest payments or
accruals for years one through three. At the conclusion of the three
year project period, $2,727 will be forgiven for each new job created
Any balance will be amortized over the remaining two year period at
nine percent interest per annum with annual payments.
12.5 Prepayment of Loan. The outstandina principal of the Loan ma be
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12.6 Promissory Note Required. The Department shall not provide Loan funds
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prior to: the co�etion and execution of the promissory notes,
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prepaid at any time without penalty.+ y
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12.6 Promissory Note Required. The Department shall not provide Loan funds
q
prior to: the co�etion and execution of the promissory notes,
Attachments C1 and C2 to this Contract.
12:7- Rea ent Schedule. Repayment of the Loan shall be made as specified
in ttaciments C1 and C2, the Promissory Notes.
ARTICLE 13.0 Loan Default
13.1 Default. If any of the following events ("Event of Default") shall
occur and be continuing, the Department may declare the Loan to be in
default:
ff
13.1.1 Any representation or warranty made by the Community or the
Business under or in connection with .this Contract shall
prove to have been incorrect in any material respect when
made and cannot be reasonably cured without harm to the
Department within thirty (30) days of written notice to cure
given by the Department or, if curable and cure is commenced
within said thirty (30) day period,cure has not been
"
effected within ninety (90) days; or
City of Iowa City
Contract No. 89-OPP-03
Page 9
13.1.2
The Community or the Business shall fail to perform or
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observe any other term or condition contained in this
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Contract and cure shall not have been commenced within
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thirty (30) days of written notice by the Department or, if
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so commenced, has not been effected within ninety (90) days
of such written notice; or
13.1.3
Execution shall have been levied against the Project or
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Business or any lien creditors suit to enforce a judgment
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against the Project or Business shall have been brought and
(in either case) shall continue unstayed and in effect for a
period of more than sixty (60) consecutive calendar days; or
13.1.4
Except as permitted in Article 9.8, the Business shall sell,
transfer, lease or convey the Project, Business or any
material part thereof, without the prior written consent of
the Department.
13.2 Actions
Upon a Declaration of Default. Upon declaration of default
made..by
the Department, the Department may:
13.2.1
To the extent permitted by law, written notice to the
Community and the Business, declare the Loan payable under
the promissory notes and this Contract to be forthwith due
and payable, without presentment, demand, protest, or
further noticeof any kind, all of which' are hereby
- expressly waived by the Community and the Business;
13.2.2 Take whatever action at law or in equity may appear
' necessary or desirable to collect the payments and other
amounts then due and thereafter to become, due or to enforce
performance and observance of any obligation, agreement or
covenant of the Community, or the Business under this
Agreement. No remedy herein conferred upon or reserved to
the Department is intended to be exclusive of any other
remedy or remedies, and each and every such remedy shall be
cumulative, and shall be in addition to every other remedy
given hereunder or now or hereafter existing at law or in
equity or by statute.
13.2.3 At its sole option, require assignment to the Department of
any mortgage or other security interest executed in favor of
the Community by the Business, in which event any recovery
of funds by the Department shall be allocated between the
Community and Department in direct proportion to the
comparative amounts of assistance provided the Business by
each.
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performance and observance of any obligation, agreement or
covenant of the Community, or the Business under this
Agreement. No remedy herein conferred upon or reserved to
the Department is intended to be exclusive of any other
remedy or remedies, and each and every such remedy shall be
cumulative, and shall be in addition to every other remedy
given hereunder or now or hereafter existing at law or in
equity or by statute.
13.2.3 At its sole option, require assignment to the Department of
any mortgage or other security interest executed in favor of
the Community by the Business, in which event any recovery
of funds by the Department shall be allocated between the
Community and Department in direct proportion to the
comparative amounts of assistance provided the Business by
each.
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City of Iowa City
Contract No. 89-OPP-03
Page 10
ARTICLE 14.0 OTHER CONDITIONS
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k 14.1 Enforceable Obliation. This Agreement is, and the Promissory Notes,
otter documents an agreements required by the Agreement when executed
and delivered hereunder or pursuant thereto will be, legal, valid and
binding obligation of the Community and the Business enforceable
against the Community and the Business in accordance with their
K, respective terms.
k' 14.2 Conflict with Other Aereements or Documents. Neither the execution,
delivery or performance of this Loan Agreement or the Promissory
Notes, the consummation of the transactions contemplated hereby, nor
the fulfillment of or compliance with the terms and conditions of this
Loan Agreement conflicts with or results
in a breach of any of the
terms, conditions or provisions of any restriction in any
organizational document or any agreement or instrument to which the
Community and the Business are now a part or by which the Community
and the Business are bound, or constitutes a default under any of the
foregoing, or result in the creation or imposition of any lien, charge
or encumbrance whatsoever upon any of the property or assets of the
Community, or the Business under the terms of any instrument or
agreement, other than as provided in this Loan Agreement.
14.3 Pending Litigation. There is no litigation or proceeding pending, or
to ,the knowledge of the Community or the Business threatened, against
the Community or the Business affecting in any manner whatsoever the
right of the Community or the Business to execute this Agreement or
the other agreements required to be executed by the Community or the
Business under the Agreement, or the ability of the Community or the
Business to make the payments required hereunder or to otherwise
comply with the Community or the Business obligations contained herein
or therein.
14.4 Com liance with Laws and Reoulations. The Community and the Business
wi 1 comp yin a materia .respects with all applicable laws, rules,,
ordinances, regulations and orders, such compliance to include,
without limitation, paying before the same become delinquent all i
taxes, assessments and governmental charges imposed upon the Community
or the Business or upon the Community or the Business' property except
to the extent contested in good faith.
14.5 Maintenance Expenses. The Community and the Business agree that the
Department and the community shall have no responsibility nor incur
any expense for maintenance or preservation of the Project or for the
payment of any taxes, assessments or other governmental charges
assessed or levied with respect to the Project except as expressly
provided for in the Contract.
14.6 Investment of Loan Preds. Temporarily idle loan funds held by the
Community or t e Buocesiness may be invested provided that such
investments shall be in accord with state law, shall be controlled by
the Community or the Business, and that the interest accruing from
such investments shall be credited to and expended on the Project
prior to the expenditure of other loan funds. In the event that loan
funds remain after Project completion, and after all charges,
1980
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t: City of Iowa City
Contract No. 89-OPP-03
a, Page 11
including audit costs or estimated audit costs, to the Project have
been paid or obligated, such funds shall be returned to the Department
within thirty days. Any loan funds plus any interest accrued on loan
funds, that are not expended in a timely fashion, shall be returned to
the Department upon request.
4
14.7 Maintenanceof the Project and Insurance. The Community and the
I
Business covenant that, so ong as the Loan is outstanding and unpaid,
i
the Business shall keep, or cause to be kept, the Project in as good
repair and condition, as same may be, or may be hereafter placed upon
completion, ordinary wear and tear only excepted; and shall not suffer
¢¢¢
or commit waste or damage upon the Project. In addition, the Business
i
may be required to keep in force insurance, premiums therefore to be
prepaid without notice or demand, against loss by fire, tornado, and
other hazards, casualties, and contingencies as the Department may
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reasonably require on the Project, in an amount not less than the full
insurable value of the Project, or not less than the unpaid balance of
9
principal on the loan with such insurance payable to the Community or
i,
the Business as their interests may appear. The Business may be
required to submit copies of policies with proper riders to the
(.
Department. Insurance maintained pursuant to the Mortgage referenced
f
in Article 9.9.7 shall fulfill the requirements of this Article.
14.8 Indemnity, Fees and Expenses.
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14.8.1 The Business will indemnify and save harmless the Department
and the Community and its officers and employees from and
1
against any and all losses, by it or them while it or they
are acting in good faith to carry out the transactions
contemplated by this Agreement or to safeguard its or their
interests or ascertain, determine or carry out its or their
obligations under this Agreement or any law or contract
applicable to said transaction.
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14.8.2 The Business will upon demand pay to the Department and the
Community the amount of any and all reasonable expenses,
including the reasonable fees and expenses of their counsel
and of any experts and agents, which the Department and the
Community may incur in connection with the exercise or
j
enforcement of any of the rights of the Department and the
`
Community hereunder, the failure by the Business to perform
or observe any of the provisions hereof, and the collection
of payments due under this Agreement.
s
196c)
ty of
ContractIowa CitOP. .
No.P-03
j: Page 12
14.8.3 The Business agrees to pay all appraisal fees, survey fees,
recqrding fees, license and permit fees and insurance
premiums related to the Project. It is the intention of the
Community and the Business that the Department and, except
as provided in the promissory notes or upon declaration of
default as provided for herein, the Community shall not
incur pecuniary liability by reason of the terms of this
3
Agreement and the Business shall indemnify and hold harmless
the Department and the Community (including any person at
any time serving as an officeroremployee) against all
claims by or on behalf of any person, firm or corporation,
arising out'of the same, and all costs and expenses incurred'
in connection with any such claim or in connection with any
action.or'proceeding brought thereon. The obligation of the
Business under this Section shall survive the termination of
this Agreement.
14.8.4 Waivers. No waiver by the Department of any default
erfi eunder shall operate as a waiver of any other default or
of the same default on a future occasion. No delay on the
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part of the Department in exercising any right or remedy
is
hereunder shall operate as a waiver thereof. No single or
partial exercise of any right or remedy by the Department
shall preclude future exercise thereof or the exercise of
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any other right or remedy.
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the final payment under this Contract is issued. All records shall be retained
beyond the three year period if audit findings have not been resolved within
that period. Records for non -expendable property acquired under this Contract
shall be retained for a three (3) year period after the final disposition of
property.
9
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City of Iowa City
i? Contract No. 89-OPP-03
Page 13
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GENERAL CONDITIONS
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IOWA COMMUNITY ECONOMIC BETTERMENT ACCOUNT PROGRAM (CERA)
i Section 1.0 Amendment of this Document
g a
P The Department, Community, or the Business may, during the duration of this
Contract, deem it necessary to make alterations to the provisions of this j
Contract. Any changes to the Special or General Conditions of this Contract,
which are approved by all the parties, shall be incorporated into this Contract.
The provisions of the amendment shall be in effect as of the date of the
amendment unless otherwise specified within the 'amendment. A waiver of any
condition of this Contract must be in writing from the duly authorized official
of the Department specified in Article 6.1 of the Special Conditions.
Section 2.0 Accounts and Records
2.1 Accounts - The Community and Business shall maintain books, records,
documents, and other evidence pertaining to all costs and expenses incurred and
revenues received under this Contract to the extent and in such detail as will Ii
properly reflect all costs, direct and indirect, of labor, materials, equipment,
supplies, services, and other costs and expenses of whatever nature, for which �t
-
-' payment is claimed under this Contract.
2.2 and Inspection - At any time during normal business hours and as
,`Audit
frequently as .is deemed necessary, the Community and Business shall- make
available to the Department or the State Auditor, for their examination, all,of
its records pertaining to all matters covered by this Contract and permit these I ";
agencies to audit, examine, and make excerpts'' or transcripts from such records,
contracts, invoices, payrolls, personnel records,' conditions of employment, and .
all other matters covered by this Contract. The Department shall treat the
information contained in such records confidentially,;except where disclosure is JI
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required by law or required in connection with the Department's oversight
responsibility.
2.3 Audit Requirements - If the Department deems necessary, it may require
that the Community and Business conduct an audit of the project. This audit
would include all income ',and expenditures of proceeds and local cash.Any cast
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associated with this audit would be the responsibility of the Community and
Business.
2.4 Retention of Records - All records' pertaining to this Contract shall
be retained for a period of three (3) years beginning with the date upon which
the final payment under this Contract is issued. All records shall be retained
beyond the three year period if audit findings have not been resolved within
that period. Records for non -expendable property acquired under this Contract
shall be retained for a three (3) year period after the final disposition of
property.
9
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City Y of Iowa Cit ,.
Contract No. 89-OPP-03
Page 14
Section 3.0 Suspension and Termination of Contract
3.1 Suspension - If the Community or Business fail to comply with the
special conditions or the general terms and conditions of this Contract, the
Department may, after notice, suspend the Contract and withhold further payments
or prohibit the Parties from incurring additional obligations of Contract funds,
pending corrective action or a decision to terminate in accordance with
.provisions 3.2 or 3.3 hereof.
3.2 Termination for Cause; Recoveries after Date of Completion The
Department may terminate this Contract in whole, or in part, at any time before
the date of completion, whenever it is determined that the Community or Business
has failed to materially comply with the conditions of the Contract. The
Department shall promptly notify the Parties in writing of the determination and
the reasons for the termination, together with the effective date. Payments
made or recoveries by the Department under Contracts terminated for cause shall
be in accord with the legal rights and liabilities of the parties. Payments and
recoveries may include, but are not limited to, the following: Payments will be
allowed for costs determined to be in compliance with this Contract up to the
date of termination, based on accepted close-outs and audits. The, Community and
Business shall return to the Department all unencumbered department funds within
one week of notice of termination. Further,any costs previously; paid by the
Department which are subsequently determined to be unallowable through audit and
close-out procedures, whether such determination is made before or within a
reasonable time after, the date of completion, shall) be returned to the
Department within thirty (30) days of such determination.
3:3Termination for Convenience - The Department, Community or Business,
may terminate this Contract in whole, or in part, upon their agreement that the
continuation of the project would not produce beneficial results commensurate
with the future expenditure of funds. The parties shall .agree upon.the
termination conditions, including the effective date and, in the case of partial
terminations,, the portion to be terminated. The Community and Business shall
not incur new obligations for the terminated portion after the effective date,
and shall cancel as many outstanding obligations as possible. The Department
shall allow full credit to the Community or Business for the Department share of
.the noncancellable`obligations, properly incurred by the Community or Business
prior to termination. a
3.4 Cross Default - The Department may elect to terminate this Contract c
and demand repayment of CEBA funds, up to the full amount of this Contract and
may levy appropriate penalties if the Business should fail to make any payment ;
of any debt, interest, or premium thereon when due and such failure shall
continue after the applicable grace period, if any, as specified in the
agreement or instrument relating to such debt; or should fail to perform or
observe any term, covenant, or condition on its part under any agreement or
instrument when required to be performed or observed.
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City Y of Iowa Cit ,.
Contract No. 89-OPP-03
Page 14
Section 3.0 Suspension and Termination of Contract
3.1 Suspension - If the Community or Business fail to comply with the
special conditions or the general terms and conditions of this Contract, the
Department may, after notice, suspend the Contract and withhold further payments
or prohibit the Parties from incurring additional obligations of Contract funds,
pending corrective action or a decision to terminate in accordance with
.provisions 3.2 or 3.3 hereof.
3.2 Termination for Cause; Recoveries after Date of Completion The
Department may terminate this Contract in whole, or in part, at any time before
the date of completion, whenever it is determined that the Community or Business
has failed to materially comply with the conditions of the Contract. The
Department shall promptly notify the Parties in writing of the determination and
the reasons for the termination, together with the effective date. Payments
made or recoveries by the Department under Contracts terminated for cause shall
be in accord with the legal rights and liabilities of the parties. Payments and
recoveries may include, but are not limited to, the following: Payments will be
allowed for costs determined to be in compliance with this Contract up to the
date of termination, based on accepted close-outs and audits. The, Community and
Business shall return to the Department all unencumbered department funds within
one week of notice of termination. Further,any costs previously; paid by the
Department which are subsequently determined to be unallowable through audit and
close-out procedures, whether such determination is made before or within a
reasonable time after, the date of completion, shall) be returned to the
Department within thirty (30) days of such determination.
3:3Termination for Convenience - The Department, Community or Business,
may terminate this Contract in whole, or in part, upon their agreement that the
continuation of the project would not produce beneficial results commensurate
with the future expenditure of funds. The parties shall .agree upon.the
termination conditions, including the effective date and, in the case of partial
terminations,, the portion to be terminated. The Community and Business shall
not incur new obligations for the terminated portion after the effective date,
and shall cancel as many outstanding obligations as possible. The Department
shall allow full credit to the Community or Business for the Department share of
.the noncancellable`obligations, properly incurred by the Community or Business
prior to termination. a
3.4 Cross Default - The Department may elect to terminate this Contract c
and demand repayment of CEBA funds, up to the full amount of this Contract and
may levy appropriate penalties if the Business should fail to make any payment ;
of any debt, interest, or premium thereon when due and such failure shall
continue after the applicable grace period, if any, as specified in the
agreement or instrument relating to such debt; or should fail to perform or
observe any term, covenant, or condition on its part under any agreement or
instrument when required to be performed or observed.
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City of Iowa City
Contract No. 89-OPP-03
Page 15
Section 4.0 Civil Rights Provisions
4.1 Program Nondiscrimination - No person in the United States shall on
the ground of race, color, national origin, or sex be excluded from
participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity funded in whole or in part with funds made
available through this Contract.,
4.2 Consideration for Employment - The Community and Business shall, in
all solicitations or advertisements for employees, each state that all qualified
applicants will receive consideration for employment without regard to race,
color, religion, sex, national origin, age, or disability and shall list all
suitable employment openings in the State Department of Employment Services
local offices.
4.3 Discrimination in Employment - The Community and Business shall not
discriminate against any qualified employee or applicant for employment because
of race, color, religion, 'sex 'national origin, age, or physical or mental
disability. The Community and Business agree to post notices setting forth the
provisions of the nondiscrimination clause in conspicuous places so .as to be
available to employees.
4.4 'Noncompliance with the Civil Rights Laws - In the event of the
Community's or Business' noncompliance with the nondiscrimination clauses of
this Contractor with any of the aforesaid rules,regulations, or`requests, this
Contract may be canceled, terminated, or suspended either wholly or in part.
Section 5.0 Interest of Department, Community, Business and Others
5.1.. Department - No officer, member, or employee of the Department and no
members of its governing body, and no other public official of the governing
body of the locality or localities in which the project is situated or being
carried out who exercises any functions or responsibilities in the review or
approval of the undertaking or carrying out of this project, shall participate
in any.decisions relating to this Contract which affect his personal interest or
the interest of any corporation, partnership, or association in, which he is
directly or indirectly interested or have any personal or financial interest,
direct or indirect, in this Contract or the proceeds thereof.
5.2 Community - The Community covenants that no official, employee, or
agent of the Community presently has any personal or financial interest and
shall not acquire any such interest, direct or indirect, which would conflict in
any manner or degree with the performance of services required to be performed
under this Contract. The Community further covenants that in the performance of
this Contract no person having any such personal or financial interest shall be
employed.
5.3 Political Activity - No portion of program funds shall be used for any
partisan political activity or to further the election or defeat of any
candidate for public office.
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City of Iowa City
Contract No. 89-OPP-03
r:
Page 16
f�
l 5.4 Bonus or Commission - No payment of any bonus or commission shall be
F' made for the purpose of obtaining State approval of the application for such
assistance, or State approval of applications for additional assistance, or any
other approval or concurrence of the State required under this Contract, or
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a e ru es with respect herewith, provided, however, that reasonable fees for
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fide technical; consultant, managerial or other such services, other than
actual solicitation, are not hereby' prohibited if otherwise eligible as program
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costs.
5.5 Personnel Qualification - All of the work and services required
hereunder will be performed by the Community or Business and all personnel
engaged in the work shall be fully qualified and authorized under state and
local law to
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perform such services.
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5.6 Binding Effect; Governing Law - This Contract shall be binding upon
and inure to the benefit of the parties and their respective successors and
assigns, except that the Community or Business shall not have the right to
assign their rights hereunder or any interest herein without the prior written
consent of the Department. This Contract shall also inure to the benefit of the
I.
Department and shall be governed by, and construed in accordance with, the laws
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of the State of Iowa.
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Section 6.0 Contract Coverage
6.1 Entire Agreement - This instrument, and any referenced attachments -
hereto or documents referred to herein, contains the entire agreement between
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the parties and any, statements, inducements or promises not contained herein
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shall not be binding upon said parties. This Contract shall be binding upon the
successors of the respective parties.
6.2 Conflicts with Laws - If any of the provisions herein shall be in
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conflict with the laws of the State of Iowa, or shall be declared to be invalid
by any court of record of this State, such invalidity shall be construed to
I.
affect only such portions as are declared invalid or in conflict with the law
and such remaining` portion or portions of the Contract shall remain in effect
and shall be construed as if such invalid or conflicting portion of such
Contract were not contained herein.
Section 7.0 Litigation
The Community and Business agree to pay the cost of any litigation arising
from their respective` failure to comply with the rules and regulations in this
Contract or resulting from their respective negligence or incompetence. In
carrying out the provisions of the Contract or in exercising any power or
$
authority granted to the Community or Business thereby, there shall be no
4
liability, personal or otherwise, upon the Department, it being understood that
°
in such matters the Department acts for the State. furthermore, the Community
f
and Business shall indemnify and save harmless the State from suits, actions or
claims of any character brought for or on account of any injuries or damages
{
received by any person or property resulting from operations of the Community or
Business or any persons working under them, carrying out the terms of this
Contract, except where the State may be held liable under the State Tort Claim
Act. Chapter 25A-1987 Code of Iowa.
1
Section 8.0 Resolution'of Disagreement
In the, event of any disagreement between the Community, Business and the i
Department relating to the technical competence of the work and services being
performed and its conformity to the requirements of this Contract, the decisions ;
of the Department shall prevail.
Section 9.0 Financial Obligation of the State of Iowa
The State of, Iowa shall not, under any circumstances, be obligated
financially under this Contract, except to pay according to the terms of the
Contract. i
k Section 10.0 Recovery of CEBA Funds
If the Department requires any recovery of CEBA funds from the Community or
Business for failure to comply with the terms of the Contract, it is expressly +
understood that the Business will be required to reimburse the Community for f ,
such recoveries related to the Business' failure to comply with the terms of the
Contract.
„ IN WITNESS THEREOF, the Community and the Business hereto have executed this i
! Contract on the day and year last sped, ie el ow.
Community: Issuing Agency:
City f Io City Departm co� Development
By. G� By:
ayor ude T. Conway
Business:
Iowa Cit mp y
By:
ant Manager
Date: v—��%/I��
D1v1s1 Admin str for
Date: — M
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Rich d Timmerman
irector
Date
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.APPROIFE�TD
LEGAL DEPARTMENT 1� '"
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.5-- so
ATTACHMENT A '
of Iowa City r`
tainer— Corporation To be filled In by ED; i
1989 Original
3UDGET SUMMARY
OPP-89-03 Amendment H
PROJECT DESCRIPTION
PERFORMANCE
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TARGET
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AMOUNT BUDGETED
CEBA RECIP.. 3USINESS OTHER TOTAL
FUNDS FUNDSFUNDS'
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orgivable
Activit�l_ _ _ _ __J
Creation of 110 new
$30 0,000
$24,500
-
Land Acquisition and Site Preparation
FTE's at the Iowa
Cit facilit b the
Y Y Y
org ivable
_0-
-O-
IC Banks
Buydown
$520,500
end of theproject
Loan
$196,000
Michael
Activity 2______J
Oevelopme
t
Building Construction
$200,000
$50,000
-0-
2,303,000
Loan
Loan
Michhel
$2,603,000'
Complete by 2-1-90
evelopmen
$50,000
Loan -IA -Il
'Electric
Activil�3______J
Can Line
Machinery and Equipment
Complete by 5-1-90
$3,700,00
Equity
$7,800,00
ALCOA
$11,500,00
_0_
_0-
-
End Line
Complete by 5-1-90
1,;tivity4__
Working Capital Requirements
-0
-0-'
4,700,000
-0-
,700,000`
Complete by 10-1-90
Equity
Activity :___
Total Amount of All Funds Budgeted
+
+ ,500i
19,323,50 r
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tEBA
ATTACHMENT 8
Naive of Recipient City of Iowa City
Van Dorn Company/Silgan Container Corporation
IOWA CEBA RECIPIENT PROGRAM SCHEDULE OPP-89-03
inon
PROJECT ACTIVITY: Loan and Forgiv
Loan to City of Iowa City for Van Dor
Company/Silgan Container Corporation
blgst QTR.
2nd QTR.
3rd QTR.
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tEBA
ATTACHMENT 8
Naive of Recipient City of Iowa City
Van Dorn Company/Silgan Container Corporation
IOWA CEBA RECIPIENT PROGRAM SCHEDULE OPP-89-03
inon
PROJECT ACTIVITY: Loan and Forgiv
Loan to City of Iowa City for Van Dor
Company/Silgan Container Corporation
blgst QTR.
2nd QTR.
3rd QTR.
4th QTR.
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Milestones:
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*
1. Land Acquisition & Site Preparatio
2. Building Construction
2. Building Construction
3. Machinery & Equipment
3• Machinery & Equipment
4 Job Creation Goals *
19
26
33
39
44
44
45
45
46
46
46
46
4. Job Creation Goals *
2
2
2
3
4
4
5
6
8
6.
6.
7.
1990
Loan and Forgivable Loan to City
of Iowa City for Van Dorn Company/
Silvan Container Corporation
5th QTR.
6th QTR.
7th QTR.
8th QTR.
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N
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Milestones:
�`�`�
v a
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1,Rt.`•
*
I. Land Acquisition & Site Preparatio
2. Building Construction
3. Machinery & Equipment
4 Job Creation Goals *
19
26
33
39
44
44
45
45
46
46
46
46
5.
6.
7.
1 * Numbers are cumulative.
■
l
4
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2nd QTR.
3rd QTR.
4th QTR.
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CEBA
ATTACHMENT B
Nadie of Recipient City of Iowa City
Van Dorn Conpany/Sil•gan Container Corporation
IOWA CEBA RECIPIENT PROGRAM SCHEDULE OPP-89-03
1991
PROJECT ACTIVITY: Loan and Forgiv
.Loan to City of Iowa City for Van Dor
Company/Silgan Container Corporation
blgst QTR.
2nd QTR.
3rd QTR.
4th QTR.
J
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M
A
M
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0
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I D
Milestones:
;f;M-
Awii
Sao
M;�
°.r �O
W46
aw,
zw
2i
mow°
1• Land Acquisition & Site Preparatio
2. Building Construction
3 Machinery & Equipment ,
4 Job Creation Goals *
50
55
60
65
70
75
80
85
95
100
110
110
5.
6.
7.
Loan and Forgivable Loan to City
- of Iowa City for Van Dorn Company/
Silvan Container Corporation
5th QTR
6th QTR.
7th QTR.
8th QTR.
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Milestones:
4a- -,
M
msp
a
ow
�W,
:M
Way
1• Land Acquisition & Site Preparatio
2• Building Construction
3. Machinery & Equipment
q Job Creation Goals
5.
6.
7.
* Numbers are cumulative.
269-0168
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City of Iowa City
Contract No. 89-OPP-03
Page 1 of 3
PROMISSORY NOTE
Attachment C1
Date: November 17, 1988
FOR VALUE RECEIVED the
"Maker")
City of Iowa
i„
County, Iowa (the
j
a.;
promises to
Economic Development,
pay to
at its
City of Iowa City
Contract No. 89-OPP-03
Page 1 of 3
PROMISSORY NOTE
Attachment C1
Date: November 17, 1988
2) A five year $300,000forgivable loan. There will be no principal or
interest payments' or accruals for years one through three. At the
conclusion of the three year Project period, $2,727 will be forgiven for
each new job created. Any balance will be amortized over the remaining
two year term at nine percent interest per annum with annual payments
commencing' January 15, 1993. If the Business creates zero jobs, the
repayment schedule shall be as follows:
PAYMENT PRINCIPAL INTEREST TOTAL
NUMBER DUE DATE AMOUNT AMOUNT PAYMENT
1 January 15, 1993 $143,540.67 $27,000.00 $170,540.67
2 January 15, 1994 $156,459.33 $14,081.34 $170,540.67
TOTAL $300,000.00 $41,081.34 $341.081.34
FOR VALUE RECEIVED the
"Maker")
City of Iowa
City, Johnson
County, Iowa (the
j
a.;
promises to
Economic Development,
pay to
at its
the order of
principal
the State of
business,
Iowa, Department of
J.
as may
("Note
be designated
from time
place
to time by
of
the holder of
or at such other place
this
i
9
111), the principal sum of $500,000 (the
"Loan") to
promissory note
be paid as follows:
M
1) A
annual
ten year $200,000 loan at an interest rate of five percent per: annum with
payments in accordance with the following
payment
schedule: -
'f
PAYMENT
NUMBER
DUE DATE'
PRINCIPAL
INTEREST
TOTAL
AMOUNT
AMOUNT
PAYMENT
1
December 15,
1990
$ 15,900.91
$10,000.002
$ 25,900.91
3
December 15
December 15,
1991
1992
$ 695.96
$ 17,530.75
$ 8,30.16
$ 25,a900.91
4
December 15,
1993
$ 18,407.29
$ 7,493.62
00.91
$ 25,900.91
T ;
5
6
December 15,
December 15,
1994
1995
$ 19,327.66
$ 20,294.04
$ 6,573.25
S 5,606.87
$ 25,900.91
7
8
December 15,
1996 .
$ 21,308.74
$ 4,592.17
$ 25,900.91
$ 25,900.91
r
9
December. 15,
1997
$ 22,374.18
$ 3,526.73
$ 25,900.91
10
December 15,
December 15,
1998
1999
$ 23,492.89
$ 24,667.58
$ 2,408.02
$ 1,233.38
$ 25,900.91
$ 25,900,96
TOTAL'
$200,000.00
$59,009.15
$259.009.15
2) A five year $300,000forgivable loan. There will be no principal or
interest payments' or accruals for years one through three. At the
conclusion of the three year Project period, $2,727 will be forgiven for
each new job created. Any balance will be amortized over the remaining
two year term at nine percent interest per annum with annual payments
commencing' January 15, 1993. If the Business creates zero jobs, the
repayment schedule shall be as follows:
PAYMENT PRINCIPAL INTEREST TOTAL
NUMBER DUE DATE AMOUNT AMOUNT PAYMENT
1 January 15, 1993 $143,540.67 $27,000.00 $170,540.67
2 January 15, 1994 $156,459.33 $14,081.34 $170,540.67
TOTAL $300,000.00 $41,081.34 $341.081.34
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City of Iowa City
Contract No. 89-OPP-03
Page 2 of 3.
G
— y APPRVED AS TO F4d
LEGAL DEPARTMENT
-7-S-id
CityIow City, Iowa
By: 2, M 9
M yor
L'tiy-W erk
(Seal)
In the event the Maker fails to requisition and spend the full face amount
! of the Loan as set out above
and as set out in the Loan Agreement then the
amount of each installment payment shall be reduced accordingly in
amounts. equal
In the event of default in the payment of Note 1, the same may become due
and payable without notice at the option of the holder.
In such event, Maker
agrees to pay all reasonable costs of collection including reasonable attorney
fees. Maker's liability for
the repayment of Note 1 to the State of Iowa, ;
Department of Economic Development, is limited to those
amounts Maker collects
through its good faith enforcement of the security interest which secures its
loan of $500,000 to Iowa
City Can Mfg. Company.
Maker hereby represents and warrants that it hasobtainedor will obtain a
mortgage and/or security interest
on the Project as defined in the Loan
Agreement. Upon exhaustion of its rights in the collateral
granted by such
security interest, the Maker will have no liability for any deficiency owing the j
State
of Iowa, Department of Economic Development under Note 1. Nothing in this
paragraph shall limit the
recovery of principal and interest by the State of
Iowa, Department of. Economic Development in the
event of fraud, or gross
mismanagement by Maker in the application for or use of the sums loaned under
Note 1.
r
Maker represents and warrants that the extension of credit evidenced by
Note l is for the described
purposes in the Loan Agreement. )'
`
Note 1 is the promissory note referred to in, and is entitled to the
benefits of, the Loan Agreement dated November "Loan
G
17, 1988 (the Agreement").
The Loan Agreement, among other things, contains provisions for acceleration of
the
maturity hereof upon the happening of 'certain stated events and also for
prepayments of Loan principa
therein specified. l without penalty upon the terms and conditions
Note l has been approved by the City Council which has designated ,the Mayor
as signatory for the City of Iowa City.
— y APPRVED AS TO F4d
LEGAL DEPARTMENT
-7-S-id
CityIow City, Iowa
By: 2, M 9
M yor
L'tiy-W erk
(Seal)
I
City of Iowa City
Contract No. 89-OPP-03
Page 3 of 3
x
The special endorsement of Note I hereinbelow does
indebtedness or a charge
not, constitute an
against the general credit
yJ,
of Iowa or the Department.
or general fund of the State
of Economic Development.
STATE OF I
DEPAR ECONOMIC DEVELOP. NT
By:
Jud nwa
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D' i n Adm' ra or
By:
i
aro L.a
m
,
an
( -
.,-
_,..
-Dir ctor _
.:------
Date.•
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15
e City of Iowa City
n Contract No. 89-OPP-03
Page 1 of 3
Attachment C2
Date: November 17, 1988
PR014ISSORY NOTE
FOR VALUE RECEIVED Iowa City Can Mfg. Company (an Ohio joint venture
partnership between the Central States Can Company, a division of Van Dorn
Company, and Silgan Containers Corporation) (the "Maker") promises to pay to the
order of the City of Iowa City, Johnson County, Iowa, at its principal place of
business, or at such other place as may be designated from time to time by the
holder of this promissory note ("Note 2"), the principal sum of $500,000
(the "Loan"), to be paid as follows:.
1) A
ten year $200,000 loan
at, an interest
rate of five
percent per annum with
annual
payments
k,
following payment schedule:
u.
e City of Iowa City
n Contract No. 89-OPP-03
Page 1 of 3
Attachment C2
Date: November 17, 1988
PR014ISSORY NOTE
FOR VALUE RECEIVED Iowa City Can Mfg. Company (an Ohio joint venture
partnership between the Central States Can Company, a division of Van Dorn
Company, and Silgan Containers Corporation) (the "Maker") promises to pay to the
order of the City of Iowa City, Johnson County, Iowa, at its principal place of
business, or at such other place as may be designated from time to time by the
holder of this promissory note ("Note 2"), the principal sum of $500,000
(the "Loan"), to be paid as follows:.
1) A
ten year $200,000 loan
at, an interest
rate of five
percent per annum with
annual
payments
in accordancewith the
following payment schedule:
PAYMENT
PRINCIPAL _
INTEREST
TOTAL
NUMBER
DUE DATE
AMOUNT
AMOUNT
PAYMENT
C 1
-December
1,
1990
$ 15,900.91
$10,000.00
$ 25,900.91
2
December,l,
1991-
$ 16,695.96
$ 9,204.95
$ 25,900.91'
( 3
December
1,
1992
$ 17,530.75
$ 8,370.16
$ 25,900:91
4
December
1,
1993
$ 18,407.29
$ 7,493.62 '
$ 25,900.91'
5
December
1,
1994
$ 19,327.66
$ 6,573.25
$ 25,900.91
.6
December
1,
1995
$'20,294.04
$ 5,606.87
$ 25,900.91'
7
December
1,
1996
$ 21,308.74
$ 4,592.17
$ 25,900.91 j
8
December
1,
1997
$ 22,374.18
$ 3,526.73
$ 25,900.91 I
9
December
1,
1998
$ 23,492.89
$ 2,408.02
$ 25,900.91'
10
December
1,
1999
$ 24,667.56
$ 1,233.38
$ 25,900.96
TOTAL
$200,000.00
$59,009.15
$259.009.15
2) A five year $300,000 forgivable loan. There will be no principal or
interest payments or a— 1 f
ua s or years one through three. At the
conclusion of the three year Project period, $2,727 will be forgiven for
each new job created. Any balance will be amortized over the remaining two
year term at nine percent interest per annum with annual payments
commencing December 31, 1992. If the Business creates zero jobs, the
• �P_ll'�1L'ia
City of Iowa City
Contract No. 89-OPP-03
Page 2 of 3
PAYMENT PRINCIPAL INTEREST TOTAL
j
NUMBER DUE DATE AMOUNT AMOUNT PAYMENT
I
1 January 15,'1993 $143,540.67 $27,000.00 $170,540.67
2 January 15, 1994 $156,459.33 $14,081.34 $170,540.67
1
TOTAL $300,000.00 $41,081.34 $341.081.34
In the event the Maker fails to requisition.and spend the full face amount
of the Loan as set out above and as set out in the Loan Agreement then the
h installment
amount of each payment shall be reduced accordingly in. equal
_
amounts..
In the event of default in the payment of this Note 2,' or if holder
believes itself insecure, the entire principal shall at once become due and',
payable without notice at the option. of the holder of Note 2, and thereupon the.
Maker agrees to pay all costs of.collection, including attorney fees. Failure
to exercise this option shall not constitute a waiver of the right to declare .
the entire principal', amount of Note '2 due and payable at once any subsequent
time.
4
Maker represents and warrants that the extension of credit evidenced by
Note 2 is for the purposes described in the Loan Agreement.
I
{,,
Note 2 is the promissory note referred to in, and is entitled to the
benefits of, the Loan Agreement dated November 17, 1988 (the "Loan Agreement"),
between the Maker, the.Department of Economic Development, and the City of Iowa
City. The Loan Agreement,among otter things, contains, provisions for
acceleration of the maturity hereof upon the happening of certain stated events i
and also for prepayments of Loan principal, upon the terms and conditions therein j
specified. f
Note 2 has been approved by the respective Board of Directors of the joint
venture partners whose boards have designated the Maker's Plant Manager as
7'
signatory for the Maker.
Iowa Cit a if o any ;
By. tl
pUt Manager
Date:
148o
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PROMISSORY NOTE AGREEMENT
This Agreement is made between the City of Iowa City, Iowa, a municipal corporation ("City")
and Iowa City Can Company Mfg. Company ("Can Company"), a Joint Venture Partnership
established under the laws of Ohio between the Central States Can Company Division of Van
Dorn Company and Silgan Containers Corporation.
WHEREAS, it is in the public Interest to use state and local funding to encourage economic
development..in Iowa City, Iowa, and to attract Can Company to locate its manufacturing plant
In Iowa City, Iowa; and
WHEREAS, City has applied for, and obtained, a Community, Economic Betterment Account
Loan (CERA) from the Iowa State Department of Economic Development ("State") in the amount
of $500,000, to be loaned to Can Company as provided by Chapter 99E of the Iowa Code
r, (1989); and
WHEREAS, in return for the $500,000 CEBA Loan, Can Company has promised to locate its
" manufacturing plant ("Plant") in Iowa City, and to create 110 full-time employment positions over
a three year period; and
WHEREAS, an additional $50,000 is needed to offset original construction costs, although State _
is unable to provide that amount; and
WHEREAS, State has approved City's loan to Can Company in an amount of $50,000 as an
Integral part of the overall CERA Loan from the State without any additional employment
requirements beyond the 110 positions in the aggregate, contingent on City and Can Company
entering into a separate Agreement.
NOW, THEREFORE, in consideration of the mutual promises herein, the Parties agree as
I
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follows:
I
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follows:
1. City agrees to loan to Can Company the sum of Fifty Thousand Dollars ($50,000), for j
Can Company's use in constructing Its manufacturing plant ("Plant'), now being
`
constructed at 2309 Heinz Road in Iowa City's Industrial Park, Johnson County, Iowa.
2. Can Company agrees to repay to City the principal amount of $50,000 plus 3% interest
per annum over a five (5) year period, with payments deterred for the first two years.
Repayment shall commence December 1, 1992, with annual payments as follows. Final 1
payment shall be due no later than December i, 1994.
Repayment Schedule
Year Payment Pn'ncipal Interest Balance
$50,000.00
1 $1,500.00 51,500.00 <
2 1,500.00 53,000.00
3 $18,676.52 16,176.52 2,500.00 35,823.00
4 18,676.52 16,661.82 2,014.70 18,161.66
5 18.676.52 17.161.66 1,514.86 0.00 S
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$56,029.56 $50,000.00 $6,029.56 . ;I
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4.
6.
7.
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9.
10.
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NOTE: Payments are deferred for the first two years, although interest continues to
accrue. Interest paid in years 3-5 includes $1,000 from prior years, plus current
Interest due.
Can Company agrees this Promissory Note Agreement ("Agreement") is secured by a
separate Mortgage fled of record in the Johnson County Recorder's Office, as provided
by Iowa law.
Parties agree this Agreement is not assignable without the written consent of both
parties; and that the City Manager shall act as City's designee and agent for any such
purpose.
Can Company agrees it is not now, nor shall it be, the subject of bankruptcy,
reorganization or insolvency procedures. Can Company also agrees it will not permit
any material changes to take place in its financial status from the time the Agreement
is executed until time of disbursal
Can Company states it shall furnish evidence satisfactory to the City that Can Company
is duly organized and in good standing; and that Can Company has been properly
authorized to enter into this Agreement, and to comply with the terms set out herein.
Can Company also specifically agrees to give notice to City within ten days of any
material change in Can Company's financial structure of General Partnership, Including
substituted partners, additional partners or change in Partnership percentage -shares.
Can Company warrants there are no suits, actions or other procedures pending or
threatened against Can Company, or against any portions of its General Partnership
Interests, or against any of its General Partnership properties in any court, or by any -
federal, state, municipal or other governmental agency.
i
f
Parties agree that in the event Can Company fails to make payment in full to City, as
provided in the Repayment Schedule above, the City will send Can Company a written
notice to cure; requesting payment be made in full, including interest, within 30 days
after notice is mailed ("cure period"). Can Company agrees that If payment is not
received within the cure period, Can Company shall be deemed in default, City may
then accelerate the Loan and require Can Company to pay, the full amount of the
principal outstanding, together with applicable interest, upon written notice of same.
Any waiver of this right by City will not be construed to be a waiver of any subsequent #
default, as defined herein, i
i
Parties agree that nothing in this Agreement shall preclude Can Company from making x
early payments on the principal before due; and that such prepayment may be made
without penalty.
Can Company agrees to execute any releases required by City to perform an adequate
check on creditworthiness; and Can Company agrees to provide Information on its
financial structure on a form required by the City.
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1
11. For purposes of notice or information requests herein, Parties agree the following }
k persons and addresses shall be designated:
f
For City of Iowa City: Stephen J. Atkins, City Manager
City of Iowa City
f Civic Center
410 E. Washington Street
Iowa City, Iowa 52240
Phone: 319-356-5010
For Iowa City Can Company: R.L Rhodes, Plant Manager +� '
Iowa City Can Mfg. Company i
2309 Heinz Road tM
Iowa City, Iowa 52240
12. City agrees to release the funds in the amount of $50,000 to Can Company, only after i 1
satisfactory inspection of the security given to City, as noted in paragraph 3 above,
which approval shall not be unreasonably withheld. ;
13. This Agreement shall be recorded in the Johnson County Recorder's Office, after Ij
execution; and shall be deemed to be notice to the public of this Agreement. }
14. If City is required to enforce its rights In this Agreement in any court of law or equity,
Can Company agrees to pay collection costs, including reasonable attorney's fees and
court costs. i
15. If any question should arise as to the interpretation of this Agreement, Parties agree that
Iowa law shall be controlling.
IDated this day of 19
i.
.
e
IOWA CITY CA G. COMPANY
1
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lant Manager
STATE OF IOWA ' )
P
) SS:
JOHNSON COUNTY)
On this day of 1969Qbefore me, the underspigned, a Notary Public
I
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in and for the State of Iowa, personally appeared
#
to me personally known, who being by me duly sworn, did ay that the is the Plant
person
Manager for the Iowa City; Can Mfg. Company, an Ohio Joint Venture Partnership, and, by
I�
separate Resolution said person is authorized to act on behalf of said Partnership, and that
n >
said person acknowledges the execution of the instrument as the voluntary act and deed of
the Partnership.'
Notary Public in and for the State Iowa
of
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FILED N0.1066
90C:'
90 AR-9..PH_G:
MORTGAGE
This Mortgage is made between the City of Iowa City, Iowa, a municipal corporation (hereafter
"City" or "Mortgagee"), the Iowa City Can Mfg. Company ("Can Company"), an Ohio Joint
Venture Partnership established under the laws of Ohio; and Michael Development of Iowa
Limited Partnership, a Minnesota Limited Partnership ("Michael Development"), collectively
referred to as "Developers" or "Mortgagors."
WHEREAS, it is in the public interest to use state and local funding to encourage economic
development in Iowa City, Iowa, and to attract Can Company to locate its manufacturing plant
in Iowa City, Iowa; and
WHEREAS, City has applied for, and obtained, a Community Economic Betterment Account
Loan (CERA) from the Iowa Department of Economic Development ("State") in the amount of
$500,000 to be loaned to Can Company as provided by Chapter 99E of the Iowa Code (1989);
and
WHEREAS, in return for the $500,000 CEBA Loan, Can Company has promised to locate its -
manufacturing plant ("Plant") in Iowa City, and to create 110 full-time employment positions; and
WHEREAS, State has approved City's loan to Can Company in an amount of $50,000 as an
Integral part of the overall CEBA Loan from the State, contingent on City and Can Company
entering into a separate Agreement.
WHEREAS, Michael Development has agreed to lease the Plant, including land and buildings,
to Can Company for a term of years; and
WHEREAS,, Can Company will retain certain rights in the Plant machinery, equipment and
fixtures and these items shall not be part of the Premises mortgaged hereunder; and
WHEREAS, Can Company and Michael Development as Mortgagors, and City as Mortgagee, .
("Parties") agree that total debt of City's CEBA Loan of $500,000 to Can Company and City's
Loan of $50,000 to Can Company should be secured by this Mortgage in the amount of
$550,000.
NOW, THEREFORE, in consideration of their mutual promises herein, Parties agree as follows:
1. Parties agree this Mortgage shall stand as security for a loan in the amount of $50,000,
evidenced by a Promissory Note Agreement ("Note 1 "), between City and Can Company,
together with a separate loan in the amount of $500,000 evidenced by a Promissory
Note executed between City and Can Company ("Note Z), for a total Indebtedness of
$550,000, which notes are executed simultaneously herewith. In consideration for these
loans (the "Loan"), Developers as Mortgagors hereby grant and convey all their right,
title and Interest, as their respective Interests may arise, in land, buildings and
Improvements thereon and appurtenances thereto to City as Mortgagee, (excluding Can
Company's machinery, equipment and fixtures), as a mortgage on the following -
described real property, hereafter referred to as the "Premises":
rioalc11�9 rs,: 62
19 S'o
2
Lot 4, BDI Second Addition to Iowa City, Iowa; according to the plat
thereof recorded in Book 19, Page 80, Plat Records of Johnson County,
Iowa; and Lot One (1), BDI Fifth Addition to Iowa City, Iowa, according
to the plat thereof recorded in Book 29, Page 74, Plat Records of
Johnson County, Iowa.
2. In further consideration of the Loan, as evidenced by Promissory Notes 1 and 2,
Mortgagors further grant to City as Mortgagee a security interest in all rents, issues,
proceeds, product, uses or profits arising from the Premises (except for any which
result from Can Company's operation). However, Parties agree City's security interest
in Mortgagors' said rents, issues, and profits shall be subordinate to an assignment of
leases, rents and receivables by Michael Development in favor of Bankers Trust
Company as Trustee of the Industrial Revenue Bond mortgage issue, which is noted
In 1116 below and is recorded in Book 1082, pp. 85-104, in the Johnson County
Recorder's Office. Parties agree this Mortgage shall be filed with the Johnson County
Recorder's Office upon execution, and as provided by Iowa law.
3. Parties acknowledge Michael Development has constructed the Plant and has agreed,
by.separate agreement, to lease the Plant to Can Company for term of years, and
acknowledge that Can Company's rights in the Plant machinery, equipment and fixtures
are excluded from this Mortgage. For purposes of this Mortgage, Can Company and
Michael Development shall be obligated herein, as Mortgagors, as their respective
Interests in the Secured Premises may arise, from time to time, but Mortgagors'
Indebtedness herein shall, in any event, be encumbered jointly and severally by this
Mortgage.
4.
5.
9
Developers as Mortgagors agree to (a) promptly repair, restore or rebuild any buildings
or Improvements now or hereafter on the Premises which are damaged or destroyed;
(b) keep said Premises in good condition and repair, without waste, and free of
mechanic's liens or other liens or claims not expressly subordinated to the lien hereof;
(c) pay when due any Indebtedness which may be secured by a lien or charge on the
Premises superior to the lien hereof, and upon request, offer satisfactory evidence of
the discharge of such prior liens to the City; (d) complete within a reasonable time any
building or buildings now or at any time in process of erection upon said Premises; (e)
comply with all requirements of law, municipal ordinances, or restrictions of record with
respect to the Premises and the use thereof; (1) suffer or permit no change in the
general nature of the occupancy of the Premises, without Mortgagee City's prior written
consent; (g) initiate or acquiesce in no zoning reclassification, without City's written
consent; (h) pay each Item of indebtedness secured by this Mortgage when due,
according to the terms hereof.
In the event Mortgagors fall to make necessary repairs to the Premises as required in
Paragraph 4 above, Mortgagee City shall have the right, but not the obligation, to make
the repairs, and add the cost to the amount of the unpaid balance of the Loan.
Developers as Mortgagors agree to pay all property taxes before any penalties attach,
and agree to pay all other special taxes which may be assessed against the Premises
by special assessment, Mortgagors further agree to pay any water charges, sewer
service charges and other charges on the Premises when they become due. In the
BOOK1109 mt 63
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event Mortgagors file a tax assessment appeal, Mortgagors agree to pay the challenged
taxes under protest, as provided by Chapter 441, Iowa Code (1989). In the event
Mortgagors fail to make prompt payment of real estate taxes on the Premises, Including
special assessments, City as Mortgagee shall have the right, but not the obligation, to
pay the real estate taxes or assessments, and add the cost to the unpaid balance of
the Loans/Notes.
7. Developers as Mortgagors shall keep in force Insurance against loss by fire, tornado
and other hazards, casualties and contingencies on all buildings and improvements on
the Premises, with premiums pre -paid and without notice or demand, in companies to
be approved by the City, and in an amount not less than the full insurable value of
such Improvements, or not less than the unpaid balance of this Mortgage, whichever
amount is smaller. Such Insurance shall be payable to Mortgagors and Mortgagee, as
their interests and those of First Mortgagee, as noted in 916 below, may appear.
Mortgagors shall deposit Certificates of Insurance evidencing such policies with the
City.
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9.
Developers as Mortgagors further agree to obtain liability insurance coverage against
personal Injury and death on or about the Premises, and to furnish copies of
Certificates of such Insurance coverage to the City as Mortgagee. In the event either
Comprehensive Property or Liability Insurance coverage is cancelled or terminated, or
anotice of non -renewal is received by Mortgagors, Parties agree that City as
Mortgagee shall in all cases be notified of same simultaneously with notice to
Mortgagors or any other lienholders. In the event Mortgagors fail to make Insurance
premiums as they become due, City as Mortgagee has the right, but not the obligation,
to make the premium payments, and add the cost to the amount of the unpaid balance
of the Loans.
In the case of loss after foreclosure proceedings have been instituted, the proceeds of
any insurance policy or policies, if not applied in rebuilding or restoring the Premises'
buildings or improvements, shall be used to pay the amount due in accordance with
any decree of foreclosure. The balance, if any, shall be paid to the owner of the
redemption equity, if then entitled, or as the court may direct.
10. Developers as Mortgagors may at any time make pre -payments on the principal of the
Loan, without penalty.
11. Mortgagors agree to pay all costs of collections in the event Mortgagee must take
action, either informally or by judicial proceedings, to enforce this Mortgage, including
reasonable attorney fees and court costs.
12. Parties agree that in the event a dispute arises as to the interpretation of this Mortgage,
the laws of Iowa shall apply.
13. Parties agree this Mortgage cannot be assigned or amended by any Party without the
consent, in writing, by all Parties hereto. In the event of an amendment and/or
assignment, an Amended Mortgage shall be executed in a form recordable under Iowa
law, and shall be recorded in the Johnson County Recorder's Office at the Initiating
Party's own cost.
BOOK1139 F 64
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14. In the event any portion of this Mortgage shall be deemed invalid, the remainder of this
Mortgage shall be deemed severable and shall continue in full force and effect.
15. Parties agree that in the event Mortgagors file or are declared bankrupt under State or
federal law, Mortgagee's lien herein shall attach to all Premises' rents, profits, proceeds
and Issues thereof, without further action required by the City as Mortgagee and without
further recitation herein.
16. This Mortgage shall be and remain subordinate to a First Mortgage on the Premises
securing industrial revenue bonds, and to any replacement or extension thereof, in an
amount of $5,000,000, plus any interest accrual on the bonds. In no event shall the
indebtedness secured by the First Mortgage exceed $4,500,000 plus $500,000 of
necessary service reserve funds and any applicable Interest accrual on the bonds.
Mortgagors agree to Inform First Mortgagee of the existence of this Mortgage herein.
Mortgagors also agree to notify City as Mortgagee, in writing, of any substantial and
material changes in Developers' First Mortgage, together with all notices, demands or
requests given by First Mortgagee to Developers as Mortgagors herein.
17. In the event the Premises, or any of the Mortgagors' Interests in the Premises, is sold,
assigned, conveyed or further encumbered, voluntarily or involuntarily, and such transfer
reduces Mortgagee's security interests herein, City as Mortgagee may, at its discretion
and after giving Mortgagors 30 days to restore the City's security interest to its original
position, accelerate the remaining unpaid balance of this Mortgage. In such event,
Mortgagee may give written notice of same to Mortgagors, demanding payment in full
within 30 days of such event. City as Mortgagee may also commence foreclosure
upon the proscribed events noted herein.
16. In the event Mortgagors remain in default after the cure period has expired for
repayment of Notes 1 and 2, City as Mortgagee may accelerate the remaining unpaid
balance of the Mortgage and make written demand for full payment of the outstanding
balance, together with any applicable Interest then due and owing. Any waiver of this
right by City shall in no event be construed to be a waiver of a subsequent default, if,
any there be.
19. In the event Mortgagors' Interests in the Premises are condemned, City as Mortgagee
is entitled to share in the proceeds of the condemnation award, payable to Mortgagors
and City as their Interests may appear.
20. Parties acknowledge Mortgagee's judicial remedy to enforce the Mortgage herein is
foreclosure under Chapter 654, Iowa Code.. Parties agree that if the Premises should
sell, upon foreclosure, for less than the debt due and owing, Mortgagee may waive the
right to a deficiency judgment, but in such event the Mortgagors' redemption period
shall be reduced to six months, as provided by Iowa law.
21. This Mortgage shall be binding and Inure to the benefit of the Parties and to their
successors and assigns in Interest.
BOOKJJog Fe'n 65
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14. In the event any portion of this Mortgage shall be deemed invalid, the remainder of this
Mortgage shall be deemed severable and shall continue in full force and effect.
15. Parties agree that in the event Mortgagors file or are declared bankrupt under State or
federal law, Mortgagee's lien herein shall attach to all Premises' rents, profits, proceeds
and Issues thereof, without further action required by the City as Mortgagee and without
further recitation herein.
16. This Mortgage shall be and remain subordinate to a First Mortgage on the Premises
securing industrial revenue bonds, and to any replacement or extension thereof, in an
amount of $5,000,000, plus any interest accrual on the bonds. In no event shall the
indebtedness secured by the First Mortgage exceed $4,500,000 plus $500,000 of
necessary service reserve funds and any applicable Interest accrual on the bonds.
Mortgagors agree to Inform First Mortgagee of the existence of this Mortgage herein.
Mortgagors also agree to notify City as Mortgagee, in writing, of any substantial and
material changes in Developers' First Mortgage, together with all notices, demands or
requests given by First Mortgagee to Developers as Mortgagors herein.
17. In the event the Premises, or any of the Mortgagors' Interests in the Premises, is sold,
assigned, conveyed or further encumbered, voluntarily or involuntarily, and such transfer
reduces Mortgagee's security interests herein, City as Mortgagee may, at its discretion
and after giving Mortgagors 30 days to restore the City's security interest to its original
position, accelerate the remaining unpaid balance of this Mortgage. In such event,
Mortgagee may give written notice of same to Mortgagors, demanding payment in full
within 30 days of such event. City as Mortgagee may also commence foreclosure
upon the proscribed events noted herein.
16. In the event Mortgagors remain in default after the cure period has expired for
repayment of Notes 1 and 2, City as Mortgagee may accelerate the remaining unpaid
balance of the Mortgage and make written demand for full payment of the outstanding
balance, together with any applicable Interest then due and owing. Any waiver of this
right by City shall in no event be construed to be a waiver of a subsequent default, if,
any there be.
19. In the event Mortgagors' Interests in the Premises are condemned, City as Mortgagee
is entitled to share in the proceeds of the condemnation award, payable to Mortgagors
and City as their Interests may appear.
20. Parties acknowledge Mortgagee's judicial remedy to enforce the Mortgage herein is
foreclosure under Chapter 654, Iowa Code.. Parties agree that if the Premises should
sell, upon foreclosure, for less than the debt due and owing, Mortgagee may waive the
right to a deficiency judgment, but in such event the Mortgagors' redemption period
shall be reduced to six months, as provided by Iowa law.
21. This Mortgage shall be binding and Inure to the benefit of the Parties and to their
successors and assigns in Interest.
BOOKJJog Fe'n 65
5
Dated this a0 day of'{eBNurtw 19g9n
CITY OF IOWA CITY, IOWA
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Attest '4 -.) -e- -k an/
City Clerk
CORPORATE SEAL
. , JUM1140UN lsuU1141 T
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On this �Cr'�day oTGSsc/- , 19Ebefore me, AAiYIaJH 1 /J 2koTl
a Notary Public in and for the State offl wo a, personally appeared John McDonald and Marian
K: Karr, to me personally known, and, who, being by me duly sworn, did say that they are the
Mayor, and, City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the
foregoing Instrument is the corporate seal of the corporation; and that the instrument was 1
signed and sealed on behalf of the corporation, by authority of its City Council, as contained,
In {8rdmanae) (Resolution) No. passed (the Resolution adoptedUby the City
Gqm
ncil, [under ROIL CaII No:: of the City Council on the /zi .: day of
i 19_gE �and that John McDonald and Marian K. Karr acknowledged,
w deed a executed. the corporation, by it voluntarily
t execution of the Instrument to be their voluntary act and deed and the voluntary act and
v i �\_fiat'/J_/LE:Iu[/ ✓ CC�'L.`Z � -
Not ry Public in and for the State of Iowa
NOTARIAL SEAL
Baoxiic9 r". 66
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Dated this a0 day of'{eBNurtw 19g9n
CITY OF IOWA CITY, IOWA
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Attest '4 -.) -e- -k an/
City Clerk
CORPORATE SEAL
. , JUM1140UN lsuU1141 T
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On this �Cr'�day oTGSsc/- , 19Ebefore me, AAiYIaJH 1 /J 2koTl
a Notary Public in and for the State offl wo a, personally appeared John McDonald and Marian
K: Karr, to me personally known, and, who, being by me duly sworn, did say that they are the
Mayor, and, City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the
foregoing Instrument is the corporate seal of the corporation; and that the instrument was 1
signed and sealed on behalf of the corporation, by authority of its City Council, as contained,
In {8rdmanae) (Resolution) No. passed (the Resolution adoptedUby the City
Gqm
ncil, [under ROIL CaII No:: of the City Council on the /zi .: day of
i 19_gE �and that John McDonald and Marian K. Karr acknowledged,
w deed a executed. the corporation, by it voluntarily
t execution of the Instrument to be their voluntary act and deed and the voluntary act and
v i �\_fiat'/J_/LE:Iu[/ ✓ CC�'L.`Z � -
Not ry Public in and for the State of Iowa
NOTARIAL SEAL
Baoxiic9 r". 66
4
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STATE OF IOWA )
) SS:
JOHNSON COUNTY )
90
On this -I_ day of 1989, before me, the undersigned, a
Notary Public in and for the State of rlkcL � , personally appeared
Ru,,,a4 ��aAac, , to me personally known, who being by me duly sworn,
did say thAt person is authorized by the partners of Iowa City Can Mfg. Company, an Ohio
Joint Venture Partnership, by virtue of separate Resolutions of said Partnership to execute the
above agreement, and that this Instrument was signed by the Plant Manager on behalf of the
Partnership by authority of the partners' Resolutions; and the Plant Manager acknowledged the
execution of the instrument to be the voluntary act and deed of the partnership by it and by
the Plant Manager voluntarily executed.
IiOTARIAL SEAL o u in a ; id
No ary Public in and for said State
FOR MICHAEL DEVELOPMENT OF IOWA LIMITED PARTNERSHIP
By: edt '�/Q. u+s
michaer J. Swenson
STATE OF MINNESOTA )
SS:
HENNEPIN OOUNTY ) -
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On this 09th day of January 19th, before me, the undersigned, a
Notary Public In and for the State of Minnesota personally appeared
Michael' J. "Swenson to me personally known, who being by me duly sworn, c .:
did say that the person is one of thepartners of Michael Development of Iowa Umited
ej Partnership, a Minnesota Limned Partnership, and that the Instrument was signed on behalf of
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the partnership by authority of the general partners; and the partner acknowledged the a
execution of the instrument to be the voluntary act and deed of the partnership by it and by
the partner voluntarily executed.
0aimu c ,055
NOWY HiNNOIN WUN1
M iuior {OUM
MY mnun(uipr eFpirw J
BBOOKliu9 r.,: 67
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City of Iowa City
MEMORANDUM
DATE: November 8, 1989
TO: Steve Atkins, City Manager
FROM: Patt Cain, Economic Development Coordinator 1
RE: Economic Development Assistance Agreements for Iowa City Can Mfg. Company
In November, 1988, the Iowa Department of Economic Development Commission approved
Iowa City's Community Economic Development Betterment Account (CEBA) application on
behalf of the Iowa City Can Mfg. Company. The agreements necessary to implement this
award are on the Council's agenda for action at the November 14 meeting. The following
paragraphs summarize pertinent Information about the project and the loan agreements.
The Project _
Iowa City Can Mfg. Company, a general partnership between the Central States Can Company
Division of Van Dorn Company and Silgan Containers Corporation, will use a new 100,000
square foot facility now being built in the Iowa City Industrial Park to manufacture a new size
aluminum can. The company expects to create 110 jobs, primarily production positions, within
three years,
Economic Assistance
The economic assistance package for the company includes $500,000 in loans from the IDED:
a $300,000 forgivableloan ('forgiven" if job creation commitments are met) and a $200,000
conventional loan (repayable in 10 years at a 5% Interest rate). This money is loaned from the
State to the City and then from the City to the Company, which explains the two promissory
notes attached to the CEBA agreement.
Also part of the assistance package is a separate loan of $50,000 from the City to the
Company. ,This loan, of monies from the City's UDAG repayments, has a term of 5 years at
3% interest. (This matches a like loan from Iowa•Illinois Gas and Electric Company to the Can
Company.)
The $550,000 in loans from the City and State is secured by a lien on the land and building,
subordinate to the mortgage for the bond issue. In case of default, the liability of the City to
repay the loan to the State is limited to the amount the City could collect through enforcing
the security agreement.
Equity funds in the project consist of over $7 million in equipment from ALCOA and over $8
million from the Can Company.
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City of Iowa City
MEMORANDUM
DATE: November 8, 1989
TO: Steve Atkins, City Manager
FROM: Patt Cain, Economic Development Coordinator 1
RE: Economic Development Assistance Agreements for Iowa City Can Mfg. Company
In November, 1988, the Iowa Department of Economic Development Commission approved
Iowa City's Community Economic Development Betterment Account (CEBA) application on
behalf of the Iowa City Can Mfg. Company. The agreements necessary to implement this
award are on the Council's agenda for action at the November 14 meeting. The following
paragraphs summarize pertinent Information about the project and the loan agreements.
The Project _
Iowa City Can Mfg. Company, a general partnership between the Central States Can Company
Division of Van Dorn Company and Silgan Containers Corporation, will use a new 100,000
square foot facility now being built in the Iowa City Industrial Park to manufacture a new size
aluminum can. The company expects to create 110 jobs, primarily production positions, within
three years,
Economic Assistance
The economic assistance package for the company includes $500,000 in loans from the IDED:
a $300,000 forgivableloan ('forgiven" if job creation commitments are met) and a $200,000
conventional loan (repayable in 10 years at a 5% Interest rate). This money is loaned from the
State to the City and then from the City to the Company, which explains the two promissory
notes attached to the CEBA agreement.
Also part of the assistance package is a separate loan of $50,000 from the City to the
Company. ,This loan, of monies from the City's UDAG repayments, has a term of 5 years at
3% interest. (This matches a like loan from Iowa•Illinois Gas and Electric Company to the Can
Company.)
The $550,000 in loans from the City and State is secured by a lien on the land and building,
subordinate to the mortgage for the bond issue. In case of default, the liability of the City to
repay the loan to the State is limited to the amount the City could collect through enforcing
the security agreement.
Equity funds in the project consist of over $7 million in equipment from ALCOA and over $8
million from the Can Company.
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The resolution for Council consideration will approve the loan agreements and promissory
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notes for the financial assistance and authorize the Mayor to sign them as well as to sign the
security agreement for the loans. The City is now working with the Company to obtain the
necessary signatures from that party, prior to action by the Mayor. Also the Company will be
completing Attachments A and B (schedule of activities) before forwarding the CEBA agreement
to the State.
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I will attend the meeting on November 14 to answer any questions the Council may have on
this Item.
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RESOLUTION N0.
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RESOLUTION APPROVING, AND AUTHORIZING AND DIRECTING THE CITY MANAGER
TO EXECUTE A PURCHASE AGREEMENT AND COVENANT WITH MONTESSORI SCHOOL
OF IOWA CITY, IOWA, FOR THE PURCHASE OF A PORTION OF A LOT ADJACENT
TO RENO PARK.
WHEREAS, Montessori School of Iowa City, Iowa, operates a montessori school at
502 Reno Street in Iowa City; and
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WHEREAS, the house and lot at 510 Reno Street, located between the Montessori
'property
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School and the Reno Street Park, recently went on the real estate
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market; and
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WHEREAS, the Montessori School did propose that the City and the School jointly
purchase said property, to allow for an expansion of the Reno Street Park and
to allow an expansion of greenspace and playspace for the Montessori School;
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which proposal has received the favorable recommendation of the Iowa City Parks
and Recreation Commission; and
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WHEREAS, a Purchase Agreement and Covenant has been prepared, providing for the
City's purchase of the,North one-half of said property, providing for the
7'
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sharing of expenses :in connection with. said purchase, and providing mutual
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covenants regarding future use of the respective portions of said property; and
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WHEREAS, this City Council has been advised and does believe that it would be
5,
in the best interests of the City of Iowa City to purchapro
se a portion of said
park
NOW, THEREFORE BE, AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY
ut,
OF IOWA CITY, IOWA, that the Purchase Agreement and Covenantlattached'hereto
and'<
made a part hereof is hereby approved as to form and content.
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AND BE
IT FURTHER RESOLVED that the City Manager be and he is hereby authorized
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and directed to execute said Agreement for and on behalf of the of Iowa
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City;^Iowa, and to carry out the terms of purchase therein provided.'
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It was moved by and seconded by the
Resolution be adopted, and upon roll call there were:
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PURCHASE AGREEMENT AND COVENANT
This AGREEMENT, made and entered into this day of
1989, by and between the City of Iowa City, Iowa (hereafter "the City"), as
Purchaser, and Montessori School of Iowa City, Iowa (hereafter "Montessori
School"), as Seller.
Witnesseth:
Whereas, Montessori School of Iowa City, Iowa, has purchased a house and lot on
property legally described as
The South fifty (50) feet of Lot Eleven (11) in Irish's Extension of
Woods Addition to Iowa City, Iowa,
which property is located between the Montessori School on Lot 10 to the South
thereof, and Reno Street Park to the North thereof; and
Whereas, the City of Iowa City has agreed to purchase the North half of said
property from Montessori School of Iowa City, Iowa, for and in consideration of
the purchase price and covenants hereinafter provided.
Now, therefore, the parties hereto covenant and agree as follows:
1. COVENANT OF TITLE.
Montessori School covenants that it is the fee owner of the real estate
described in the preamble hereof, that it is lawfully seized and possessed
of said real estate, and that it has a good and lawful right to convey same.
2. AGREEMENT TO SELL AND PURCHASE.
Montessori School, in consideration of the City's agreement to pay the
purchase price and covenant as hereafter provided, hereby agrees to sell
and convey, and the City, In consideration of the covenants herein made by
Montessori School, hereby agrees to purchase, the following -described real
estate situated in Johnson County, Iowa, to wit:
The North twenty-five (25) feet of the South fifty (50) feet of
Lot Eleven of Irish's Extension of Woods Addition to Iowa City,
Iowa,
hereafter referred to as "the Property."
3. PURCHASE PRICE, PAYMENT AND POSSESSION.
The purchase price for the Property shall be $17,500.00. Upon the City's
execution of this Agreement, the City shall pay to Montessori School the sum
of $1,750.00, as earnest money, pending Montessori School'sperformance of
the remaining provisions hereof and delivery of a Warranty Deed for the
property. The balance of $15,750 shall be paid to Montessori School upon
performance by Montessori School of all provisions herein. All amounts shall
be payable to Montessori School at Iowa City, Johnson County, Iowa. The
City shall be entitled to title and possession of the subject Property as of
the date of settlement.
4. STATUS QUO MAINTAINED.
The Property, as of date of this Agreement, in its present condition, will
be preserved and delivered intact at the time possession is given.
S. ABSTRACT AND TITLE.
Montessori School shall promptly deliver an abstract for the Property to the
City for examination and/or continuation. The abstract shall be continued
to date and shall show merchantable title in Montessori School in conformity
with this Agreement, Iowa law and Title Standards of the Iowa State Bar
Association. Said abstract for the Property shall be returned to Montessori
School on or before the date of settlement provided, however, that the City
and Montessori School shall share equally in the expense of creating an
abstract for the City for that portion of the property being purchased by
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jthe City. All abstracting and/or title curative work, including the
procurement of and payment for the release or relinquishment of liens,
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encumbrances, or other interests, shall be the joint financial responsibility
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of and shall be shared equally by the City and Montessori School.
6.
TAXES.
Montessori School shall pay real estate taxes for the current year (1989),
pro rated to date of possession, and any unpaid taxes thereon payable for
prior years. The City shall pay any taxes not assumed by Montessori
School and all subsequent taxes before same become delinquent. Whoever
;.
may be responsible for the payment of said taxes, and the special assess-
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ments, if any, each year, shall furnish to the other parties evidence of
payment of such items not later than July 15 of each year. Any proration
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of taxes shall be based upon the taxes for the year currently payable unless
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the parties, state otherwise.
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7.
SPECIAL ASSESSMENTS.
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Montessori School shall pay all special assessments which are a lien on the
Property on the date of this Agreement.
8.
RISK OF LOSS.
Loss or damage to the land, buildings or improvements thereon, and liability
therefore, shall be at the risk of Montessori School until possession of the
Property is given to the City.
9.
DETERMINATION OF BALANCES OWED - RELEASE OF LIENS AND
ENCUMBRANCES.
In the event the property is subject to a lien, Montessori School shall
I,
furnish the City with a statement or statements, in writing from the holder
of such lien or interest, showing the correct and agreed upon balance or
balances owing to each such lienholder or equity holder; or' releasing '-or
_.
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relinquishing the lien or interest therein.
10. `
USE OF PURCHASE MONEY.
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It is agreed that at time of settlement, funds of the purchase price may be
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used to pay taxes, other liens and to acquire outstanding interests, if any,
of other parties.
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11.
DEED.
Upon payment ' of purchase price, Montessori School shall convey the
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Property to the City by Warranty Deed, free and clear of all liens, restric-
tions, and encumbrances.
12.
CITY COVENANT.
For and in further consideration of the sale of the property by Montessori V
School, the City covenants and agrees, for and on behalf of itself, its
successors and assigns, that it will use the property herein purchased for.
park purposes as an.addition to Reno Street Park, except as hereafter
provided. In the event the City proposes to sell the Property for use by
others, the City shall afford Montessori School a right of first refusal to
purchase the Property, including other adjacent City -owned park property,
if required, at the same purchase price which the City has established'or
has been offered for the Property.
13.
MONTESSORI SCHOOL COVENANTS.
For and in further consideration of the City's purchase of the Property,
Montessori School covenants and agrees, for and on behalf of itself, its
successors and assigns, as follows:
(a) Montessorl School agrees that it will use the South twenty-five (25) f
feet of Lot 11 in Irish's Extension of Wood's Addition to Iowa City,
Iowa,as greenspace or playspace for the Montessorl School, and that F
It will not construct any structure on the South twenty-five (25) feet
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15.
16.
3
of said Lot 11 without the consent of the City Council of the City of
Iowa City; and
(b) Montessori School agrees that, to the extent it uses or allows the use
of the property herein purchased by the City, or Reno Street Park
property, for play or educational activity by children during their
attendance at Montessori School, it will indemnify, defend, and hold
harmless the City, its officers, agents and employees, from and
against all claims, losses, debts, demands, suits or judgments for
property damage or bodily injury to any person, including death
directly or indirectly resulting therefrom, occurring or arising from
use of City property as hereinabove provided.
DEMOLITION OF STRUCTURE.
Upon completion of the closing and conveyance of the Property to the City,
the arties a ree that they will jointly undertake the demolition of the
structure now located on the South fifty (50) feet of said Lot 11. The City
agrees that it will secure a contract for the demolition of said structure, 1
that it will supervise the demolition effort, and that it will pay one-half ( D
of the cost of demolition, provided, however, that the City's share of '
demolition cots shall not exceed $2,500. Montessori School agrees to pay
one-half the cost of demolition of said structure, provided, however, that
in the event that the total cost of demolition exceeds $5,000, Montessori
School shall pay all demolition costs in excess of that amount.
TIME IS OF THE ESSENCE. +'
Time is of the essence in this Agreement.
i
REMEDIES OF THE PARTIES.
a. 1f the City fails to timely perform this contract, Montessori School may
it
forfeit it as provided in the Code, and all payments made shall be
forfeited or, at Montessori School's option, upon thirty days written
notice of intention to accelerate the payment of the entire balance
because of such failure (during which thirty days such failure isnot
corrected) Montessori School may declare the entire balance
immediately due and payable. Thereafter this contract may be
foreclosed in equity and the Court may appoint a receiver.
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b. If Montessori School fails to timely perform this contract, the City has
the right to have all payments made returned to it.
C. The City and Montessori School also are entitled to utilize and all
other remedies or actions at law or in equity available to them and
II
shall be entitled to obtain judgment for costs and attorney fees as
permitted by law.
17. APPROVAL OF COURT.
If the Property is an asset of any estate, trust or guardianship, this
contract shall be subject to Court approval, unless declared unnecessary by
the Buyer's attorney. If necessary, the appropriate fiduciary shall proceed
promptly and diligently to bring the matter on for hearing for Court
approval. (In that event the Court Officer's Deed shall be used.
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18. CONTRACT BINDING ON SUCCESSORS IN INTEREST.
This Purchase Agreement and Covenant shall constitute a covenant running
with the land, shall be recorded, and shall apply to and bind the successors
In Interest of the respective parties.
19. CONSTRUCTION.
9
Words and phrases herein, including any acknowledgement hereof, shall be
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construed as In the singular or plural number, and as masculine, feminine
or neuter gender, according to the context.
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20. OTHER PROVISIONS.
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DATED:
CITY OF IOWA CITY, IOWA, PURCHASER
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By:
Stephen J. Atkins, City Manager
STATEOF IOWA )
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JOHNSON COUNTY )
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On this da of
Y 19 before me,
a Notary Public in and for the State of
Iowa, personally appeared Stephen J. Atkins, to me personally known, and who,
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being by me duly sworn, did say that he is the City Manager of the City of Iowa
City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal
of the corporation; and that the instrument was signed and sealed on behalf of the
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corporation, by. authority of its City Council, as contained in Resolution No.
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passed by the City. Council on the day of
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19 and that Stephen J. Atkins acknowledged the execution of the instru-
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ment to be his voluntary act and deed and the voluntary act and deed of the
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corporation, by it voluntarily executed..
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Notary public in and for the State of Iowa
MONTESSORI SCHOOL OF IOWA CITY,
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IOWA, AN IOWA CORPORATION, SELLER
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BY:
Cheryl Maxine Whiting
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Executive Director
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CORPORATE ACKNOWLEDGEMENT:
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STATE OF IOWA )
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JOHNSON COUNTY) t
On this day of 19 , before me, the
undersigned, a Notary Public in and for the State of Iowa, personally appeared•
and to me known, who, being by
me duly sworn, did say that they are the and
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respectively, of the corporation executing the foregoing
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instrument; that no seal has been procured by) )the seal affixed thereto is the
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seal of) the corporation; that said instrument was signed (and sealed) on behalf
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of the corporation by authority of its Board of Directors; that
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and acknowledged the execution of the
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instrument to be the voluntary act and deed of the corporation, by it and by them
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voluntarily executed.
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Notary Public in and for the State of
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Improvements Project
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Parcel No.
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WARRANTY DEED
(Corporate Grantor)
For the consideration of
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Dollar(s) and other valuable consideration, Montessori School of Iowa City, Iowa,
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a corporation organized and existing under the laws of Iowa, GRANTOR, does
hereby Convey to The City of Iowa City, Iowa, GRANTEE, the following -described
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real estate in Johnson County, Iowa:
The North twenty-five (25) feet of the South fifty (50) feet of Lot
Eleven (11) in Irish's Extension of Woods Addition to Iowa City, Iowa,
according to the recorded plat thereof.
The Corporation hereby covenants with Grantee, and successors in interest, that
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it holds the real estate by title in fee simple; that it has good and lawful authority
to sell and convey the real estate; that the real estate is free and clear of all liens
and encumbrances, except as may be above stated; and it covenants to Warrant
and Defend the real estate against the lawful claims of all persons, except as may
be stated.
Words and phrases herein, including acknowledgement hereof, shall be construed
as in the singular or plural number; according to the context.
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MONTESSORI SCHOOL OF IOWA
CITY, IOWA
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Dated: By:
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Title
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By:
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STATEOF T
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COUNTY )
On this day, of 19 before me, the
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undersigned, a Notary Public in and for said State,—personally appeared
and to me personally known,
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who being by me duly sworn, did say that they are the
and respectively, of said corporation; that no seal has
been procured by the said (the seal affixed thereto is the seal of saidcorpora-
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tion; that said instrument was signed and sealed on behalf of said corporation by
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authority of its Board of Directors;' and that the said
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and as such officers acknowledged the execution of
said Instrument to be the voluntary act and deed of said corporation, by it and by
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them voluntarily executed.
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Notary Public
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3. The AFSCME pay plan be amended to reflect these changes.'
It was moved by _Amb risco and seconded by Courtney the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
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5
X
Ambrisco
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Balmer
X
Courtney
RESOLUTION NO. 89-269
X
Horowitz
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RESOLUTION AMENDING THE AFSCME PAY PLAN AND RECLASSIFYING
X
—_ Kubby
4
A POSITION IN THE CDBG DIVISION OF THE PLANNING AND PROGRAM
X
Larson
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DEVELOPMENT DEPARTMENT AND A POSITION IN THE WATER DIVISION
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OF THE PUBLIC WORKS DEPARTMENT.
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WHEREAS, Resolution No. 89-50 adopted by the City Council on March 7, 1989, established
a classification/compensation plan for AFSCME employees; and
,
WHEREAS, the classification plan of the City of Iowa City was established and Is maintained
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to reflect through job classification and compensation the level of job duties and respon-
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sibilities performed.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The position of Housing Rehabilitation Assistant be reclassified from range 8 to range
10.
2. The position of Maintenance
a Worker III/Water Plant be reclassified from range 9 to range
10,
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3. The AFSCME pay plan be amended to reflect these changes.'
It was moved by _Amb risco and seconded by Courtney the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
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5
X
Ambrisco
K
Balmer
X
Courtney
X
Horowitz
X
—_ Kubby
X
Larson
X
McDonald
Passed and approved this
14th day of November 1989,
AYOR
A01 rov &0orm
ATTEST: �%1�.��7
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C CIiY LERK
Legal Department
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City of Iowa City
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MEMORANDUM
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Date; November 7, 1989
To: City Coun
From: Douglas Boothroy, Director, De artment of Hous g & Iri pectior Services
Re: Designation and Registration o a Designated A t by Absentee Landlords and
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Condominium Associations
The Council's second consideration of this ordinance was deferred October 24, 1989, to allow
staff time to make minor changes in the ordinance for clarification purposes. I have Included
in your packet a copy of the revised ordinance with the following changes:
1. Separation of the definition designated agent from the existing Housing Code
definition of operator/manager. The original ordinance you considered had a
combined definition .of designated agent and operator/manager. This. combined
definition of. operator/manager/agent caused some confusion as to whether or not a
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designated local agent had to be a local property management firm. This was not the
Intent of the ordinance. Separating the definitions should eliminate any concerns
regarding this matter.
2. Addition of the deffnitlon of reside, The new definition Includes two standards for
residing, i.e. legal' residence and physically resides in Johnson County not less than
10 months of any applicable year. .The residency °requirement of months is
.10
recommended because, in my judgement, it provides a good balance between
i
reasonable absenses for such things as vacations and extended absences where a
designated agent should be available to handle housing problems.
,
Finally, implementation of this ordinance will occur through Housing's regular rental property
inspection scheduling process (i.e. two-year cycle for multiple dwellings, three-year cycle for
duplexes, four-year cycle for single-family rental) and/or from complaint inspections.
Thank you for your consideration of this matter.
/90