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Home My WebLink About02-04-2016 Economic Development Committee� r , �,®oa CITY OF IOWA CITY UNESCO CITY OF LITERATURE AGENDA CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE THURSDAY, FEBRUARY 4, 2016 1 2:00 NOON CITY MANAGER'S CONFERENCE ROOM CITY HALL 1. Call to Order 2. Organization of Committee 3. Consider approval of minutes from the December 15, 2015 Economic Development Committee meeting 4. Economic Development Committee Orientation and Background 5. Consider Annual Report and Request for funding from City of Literature (John Kenyon, Executive Director) 6. Consider Annual Report and Request for funding from Englert Theater (Andre Perry, Executive Director) 7. Consider Annual Report and Request for funding from Mission Creek (Andre Perry, Co-founder and producer) 8. Staff report 9. Committee time 10. Other business 11. Adjournment MINUTES PRELIMINARY CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE DECEMBER 1, 2015 CITY MANAGER'S CONFERENCE ROOM, CITY HALL, 12:00 P.M. Members Present: Susan Mims, Michelle Payne, Matt Hayek Staff Present: Tom Markus, Eleanor Dilkes, Wendy Ford, Tracy Hightshoe Others Present: Andy Davis (Press -Citizen), Jennifer Holan (Riverside Theater), Sam Osheroff (Riverside Theater), Matt Steele (Little Village Magazine) and a University of Iowa student. RECOMMENDATIONS TO COUNCIL: Payne moved to recommend the request to the full City Council for funding to Riverside Theater in the amount of $16,500 for FY17. Hayek seconded the motion. The motion carried 3-0. Hayek moved to recommend the request to the full City Council for financial assistance for Little Village's move to the Riverfront Crossings area, in the amount of $7,908. Payne seconded the motion. The motion carried 3-0. Payne moved to approve the request for funding Creative Corridor at $10,000 for FY16, and for intent to budget for FYs 17 and 18, with an annual review each year. Hayek seconded the motion. The motion carried 3-0. CALL MEETING TO ORDER The meeting was called to order by Chairperson Mims at 12:04 P.M. She then asked those present to please introduce themselves. CONSIDER APPROVAL OF MINUTES: Payne moved to approve the minutes as presented. Hayek seconded the motion. The motion carried 3-0. CONSIDER REQUEST FOR FUNDING RIVERSIDE THEATER: $16,500: Wendy Ford addressed Members regarding this request. She introduced Jennifer Holan and Sam Osheroff, noting that they submitted a request several months ago to the City, asking for financial assistance. Ford referred to the packet and the table illustrating how the requested $16,500 will be spent. Ford also reviewed the rich history of the theater and the artists, both inside and outside of Iowa, who come to Iowa City each year to work on productions. Ford referred to prior years of City assistance. From 2013 to 2015, funding was geared towards helping Riverside recover from the floods of 2008, and the loss of the Shakespeare Festival in City Park due to flooding. Ford referred to the Comprehensive Plan which notes that Riverside Theater as a key part of our .,small city with big city arts and culture" and one of the organizations that adds to the vitality of the city. The comp plan states a goal of recognizing the economic development potential of Arts and Culture for Iowa City with specific strategies of increasing visibility and awareness of arts and culture programs. She also said that ensuring that Riverside Theatre continue as a viable arts business in Iowa City is also consistent with the Central District Plan which calls for preserving and promoting the unique aspects of and supporting the economic vitality of the Northside Marketplace. Finally, she noted that the City Council's 2014-15 Strategic Planning Priorities include three goals that relate directly to supporting Riverside Theatre: striving for 1) healthy neighborhoods, 2) a strong urban core, and 3) engaging in strategic economic development activities. Because this request for $16,500 financial assistance is aligned with the Comprehensive Plan, the Central District Plan and the City Council Strategic Planning Priorities, Ford said staff is recommending the full funding request be considered by Council in the FY17 economic development budget. Ford then invited both Holan and Osheroff to speak. Jennifer Holan stated that the request boils down to the need for change — the change that comes with new leadership. Osheroff spoke to some of these changes and what has already taken place. He noted that they desire to enhance the patron experience and build partnerships within the City with other businesses, art associations, and even the University of Iowa. Payne asked what is going to happen this next summer and Holan stated that they want to be back in the park this summer and that they are aware their patrons have missed the shows in City Park. She added that they have been in touch with the Park District administration and have been addressing some of the issues there. Markus asked Holan and Osheroff who owns the building where Riverside is housed and if they have a lease on it. Holan stated that it is owned by the Gilpin family and that they have a lease through 2020. Hayek then asked about the request itself, noting that it is for one year only. Markus stated that staff reviewed this with the thinking that although the previous request was for a three-year period, with the current transition of leadership staff believed they should help them get moving in the right direction. This type of request should therefore be looked at on an annual basis. Mims welcomed Holan and Osheroff in their new leadership roles, stating that Riverside Theater is one of the city's renowned arts venues — one that the City is happy to partner with in this manner. Hayek stated that he is in full support of this request and he spoke briefly to the positive aspects of Riverside. Payne moved to recommend the request to the full City Council for funding to Riverside Theater in the amount of $16,500 for FY17. Hayek seconded the motion. The motion carried 3-0. CONSIDER A REQUEST FOR FINANCIAL ASSISTANCE FOR LITTLE VILLAGE MOVE TO RIVERFRONT CROSSINGS OFFICE: $7,908: Ford introduced the next agenda item, a request for financial assistance from Little Village magazine. She stated that Matt Steele, owner of Little Village, has been trying to find ways to grow the business and recently found office space in the same building as Her Soup Kitchen, just north of the railroad depot on Dubuque Street. The building, recently purchased by Steve (former City of Iowa City employee) and Suzanne Long is in need of updating. The building owners and business owner desire to help maintain the character of this particular neighborhood by ensuring the old building is maintained and by creating appealing office space. The plan is to improve the energy efficiency of the building and the aesthetics. Ford reviewed planned upgrades and noted that there is also a plan to offer an artist in residence space in the building. Of the expected $24,000 in expenses to achieve this plan, the owners are requesting funding of $7,908 (1/3) from the City. Ford noted that the Comprehensive Plan and the Riverfront Crossings District Plans include several goals that can be met, in part, supporting this request. She added that Little Village, an employer of people in the creative fields of editing and writing and design, is also a great resource for visitors to the city. She said staff is recommending the City fund one-third of the $24,000 in costs to upgrade this building. Matt Steele noted that he greatly appreciates the Council's time and consideration in this matter. Payne asked about the HVAC systems and if owners are seeking a MidAmerican rebate for the HVAC system. Steele stated that he was not aware of this, and Payne further explained what MidAmerican offers, stating it could help reduce costs. She also asked about the LED lighting, suggesting they may also be able to get a rebate for some of those expenses. Markus noted that the Steve Long, the new owner of the building is the same Steve Long who used to work for the City. Markus then asked Steele how long a lease he will have on this new location. He responded that it is a five-year lease. Showing his support, Hayek stated that he believes Little Village provides an element of investigative journalism and coverage on local issues that is often lacking with the broader media. Payne then asked a question about the photos shown regarding facade upgrades. She questioned if this would be covered under the City's facade program or not. Ford stated that it would qualify but that that program is out of funds at this time. Hayek moved to recommend the request to the full City Council for financial assistance for Little Village's move to the Riverfront Crossings area, in the amount of $7,908. Payne seconded the motion. The motion carried 3-0. CONSIDER A REQUEST FOR FUNDING CREATIVE CORRIDOR REQUEST: $10,000: Ford noted the letter accompanying this request, stating that this request was made back in April to the City to participate in helping to fund the 'Creative Corridor' branding efforts. She stated that there is no one representative present today regarding this request, and that she would give Members some background on this branding effort. She noted the Creative Corridor branding is an effort that began a few years ago, with a goal to help the Iowa City area and the corridor within the national marketplace. These efforts are targeted to employers, and to people who might move to the area for employment. Ford noted who some of the key players are in this effort — the University of Iowa and the City of Cedar Rapids along with ten other municipalities and economic development organizations in the region. Markus added that both ICAD and the Cedar Rapids Metro Economic Alliance are currently attempting to partner on tenant recruitment and marketing, and he believes it is important for Members to remember that when corporations are looking at potential relocation, they are looking at places with larger populations. It is the wider'corridor' aspect provides that greater population and laborshed than the City would have on its own. He also stated the growing competition with Des Moines and the 'corridor' they have established there with Ames and Iowa State University. Markus stated that he would recommend a funding commitment subject to an annual review, even if the Council agrees to set aside budgetary dollars for this for a three-year period. Mims noted that this effort has been going on now for several years, and that at first there were questions about the actual benefits from this initiative. She stated that with the staff recommendation, she is assuming that they are seeing positive results from this. Payne asked for clarification on the timing. Markus reiterated that the request is for a three-year period, starting with the current year's (FY16) amount. Hayek also asked how the funds are spent. Markus responded that with the Corridor Branding efforts, marketing is the main expense. Hayek added that he also believes there should be a Creative Corridor report to the committee after this funding cycle, so that they can better assess the effectiveness of this initiative. Payne moved to approve the request for funding Creative Corridor at $10,000 for FY16, and for intent to budget for FYs 17 and 18, with an annual review each year. Hayek seconded the motion. The motion carried 3-0. STAFF UPDATES: Ford asked Hightshoe to give Members an update on the Building Change. She explained the projects and shared pictures with the Members. The discussion continued, with Hightshoe explaining that the goal of these improvements is to help improve the downtown experience. So far, the Building Change grant program has leveraged $961,000 of investment in downtown, with the City's matching grants totaling $320,000. Hightshoe also spoke to the loan program. Mims asked if there is a way to put some of this information out on Channel 4, or other ways to get the information out to the public. Staff will look into this. Hightshoe also spoke briefly to the CDBG program and how they are out of funds currently. Ford then thanked the Members for attending today's meeting, noting that staff had hoped to have a meeting with the new owners of the Fieldhouse building but that it did not materialize as hoped. She also added some other projects on the horizon — Moss Ridge and the potential new owners out there, and also the Unitarian Church and the City's north parking lot project. COMMITTEE TIME: Mims stated that she is going to miss Payne and Hayek on this committee, should she be able to stay on it. She added that both have shown their due diligence to economic development issues within the city. She thanked them for their time on the committee. Payne stated that she has enjoyed her time on the committee, and Hayek agreed, stating that he has been on it since he began Council. He thanked staff, as well, for their work over the years. [QII:I=1A-111`-1I.1 None. ADJOURNMENT: Payne moved to adjourn the meeting at 1:00 P.M. Hayek seconded the motion. Motion carried 3-0. Council Economic Development Committee ATTENDANCE RECORD 2014 - 2015 TERM N A O N 00 W N NAME EXP. A A A A A N N N Michelle 01/02/16 X X X X X X X X Payne Matt 01/02/16 X X X X X X X X Hayek Susan 01/02/16 X X X X X X X X Mims Key: X = Present O = Absent O/E = Absent/Excused 2016 YTD 2017 Projected Funding Source Budget Actual/est still expect 448020 Community Development Assistance a Budget Amendment $411,800 $431,800 $20,000 Englert Civic Theatre** $70,000 $70,000 $70,000 la City/Coralville CVB (hotel/motel taxes) $241,762 $73,205 $264,346 Iowa City UNESCO City of Lit + book festival ** $60,000 $60,000 $60,000 Riverside Theatre, 3rd of 3 yrs in '15 $0 $0 $16,500 Film Scene $25,000 $25,000 $15,000 Food Enterprise Center feasibility study $7,500 $6,000 $0 Entrefest $10,000 Mission Creek funding $12,500 $12,500 $12,500 FYTotal $416,762 $246,705 $448,346 FY Budget Remainder $185,095 less remaining CVB funding $168,557 unspent $16,538 448070 Economic Development Assis CarryOver from year prior $100,000 139,167 $10,000 transfer from 448010 line 9,167 budget amendment request 20,000 MetaCommunications parking agreement $30,096 $30,096 $30,096 Telepharm Parking agreement $836 $1,200 ICDD Retail strategy by Kiku Obata, per City Manager $21,583 Entrefest Sponsorship via Seed Here $10,000 $10,000 Ginsberg Sprinkler Assistance - bldg change type $32,000 Creative Corridor Branding 10K in fy16,17,18 $10,000 $10,000 EDC Inc (CR) 3 yrs fy 15 6250, fy16 25K, fy17 25K $25,000 $25,000 $25,000 Little Village 7,908.00 $7,908 FYTotal $55,096 $137,423 $66,296 FY Budget Remainder $44,904 $1,744 ** Funding approved with Intent to budget 3 FY at annual report time Fiscal Year Recipient ED Fund 448070 Comm Dev 448020 CDBG Ec Dev TIF up front approved TIF rebates approved TIF rebates made 2016 City of Literature + bookfestival (begun in FY 09 $ 60,000 2016 Creative Corridor branding (yr 1 of 3) $ 10,000 2016 Curb cuts downtown $ 50,000 2016 En led Theater (begun in FY09 $ 70,000 2016 Entrepreneurial Development Ctr(yr 2 of 3) $ 25,000 2016 Film Scene yr (3 of 3) $ 25,000 2016 Food Enterprise Kit; portion of dev costs $ 6,000 2016 ICDD retail strategy 50%cost share $ 21,583 2016 Meta Communcations (multiyear parking subsidy, yr2) $ 30,096 2016 Mission Creek Festival $ 12,500 2016 Rehab cost share on Little Village office $ 7,908 2016 Sprinkler assistance (Ginsberg building rehab) $ 32,000 2016 Telepharm (yr 1 of 2 parking subsidy) $ 836 TOTALS $ 127,423 $ 173,500 $ 50,000 2015 Bldg. Change: Aidiner/Austin Burke $ 30,000 2015 Bldg. Change: Cold Stone $ 17,100 2015 Bldg. Change: Martini's $ 23,995 2015 Bldg. Change: Sports Column $ 29,610 2015 Bldg. Change: Yotopia $ 3,581 2015 City of Literature (begun in FY 09 $ 60,000 2015 Engled Theater (beg un in FY09) $ 70,000 2015 Entrefest sponsorship via Seed Here $ 10,000 2015 Entrepreneurial Development Ctr dial yr 1 of 3 $ 6,250 2015 Film Scene yr (2 of 3) $ 35,000 2015 Hilton Garden Inn (City -University URA) $ 8,800,000 2015 ICDD Targeted retail study cost share $ 10,000 2015 Iowa City Marketplace (Sycamore/First Av. URA) $ 1,750,000 2015 Meta Communications (multiyear parking subsidy, yr 1) $ 30,096 2015 Meta Communications buildout $ 58,000 2015 Mission Creek Festival $ 12,500 2015 Riverside Theater (yr3 of 3) $ 20,000 2015 1 Riverside West Apartments (Riverside Dr. URA) I $ 1,809,875 2015 Sabin Townhomes (City -University URA) $ 976,277 2015 Summer of the Ads ExpoCad software costshare $ 1,665 2015 The Chauncey (City -University URA) $14,187,250 TOTALS $ 128,511 $ 185,000 $ 104,286 $ 14,187,250 $ 13,336,152 $ - 2014 AIpIa #2 (414) $ 135,361 2014 Bldg. Change: Atlas $ 47,704 2014 Busy Coworking $ 4,327 2014 City of Literature + book festival (begun in FY 09) Is 60,000 2014 Creative Corridor (via Kirkwood) $ 10,000 2014 En led Theater (begun in FY09 $ 50,000 2014 Entrefest $ 2,500 2014 Mission Creek Festival (+$4,000 in Comm Event Frog als $ 5,000 2014 Riverside Theater (yr2 of 3) $ 25,000 TOTALS $ 46,827 $ 110,000 $ 47,704 $ - $ - $ 135,361 2013 lAlpla #2 (314) $ 141,933 2013 Bldg. Change: BoJames $ 40,000 2013 Bldg. Change: GrossSix Bldg. $ 37,729 2013 Bldg. Change: Panchero's $ 19,857 2013 Bldg. Change: Quintons $ 27,733 2013 Bldg. Change: Active Endeavors $ 16,000 2013 Bldg. Change: Chait $ 8,028 2013 Bldg. Change: Yacht Club $ 5,699 2013 City of Literature (begun in FY 09 $ 50,000 2013 1 Eng led Theater (beg un in FY09 $ 50,000 Fiscal Year Recipient ED Fund 448070 Comm Dev 448020 CDBG Ec Dev TIF up front approved TIF rebates approved TIF rebates made 2013 Hodge's Towncrest Med Office Building $ 950,000 2013 Iowa City Book Festival $ 10,000 2013 Mission Creek Festival $4,000 in Comm Event Prog also $ 5,000 2013 Pepperwood Place(717) $ 123,144 2013 Press Citizen (313) $ 6,600 2013 Riverside Theater (yr 1 of 3) $ 30,000 TOTALS $ 222,913 $ - $ 83,733 1 $ 950,000 $ - $ 265,077 2012 Alpla #2 (214) $ 126,834 2012 Busy Coworking $ 14,624 2012 City of Literature (begun in FY 09 $ 50,000 2012 Engled Theater (begun in FY09) $ 50,000 2012 IBlitz Boxing and Fitness, FY 12 $ 35,000 2012 Mission Creek no funding requests) 2012 Molly's Cupcakes, FY 12 $ 35,000 2012 Park @ 201, FY12 $ 2,500,000 2012 Pepperwood Place 617 $ 129,725 2012 Plamor Redevelopment (717) $ 34,355 2012 Prairie Lights $ 27,500 2012 Press Citizen 213 $ 6,600 2012 Running Wild $ 1,539 2012 Trumpet Blossom Cafe, FY 12 $ 35,000 TOTALS $ 150,263 $ 105,000 $ 2,500,000 $ - $ 290,914 2011 AI la #2 114 $ 127,937 2011 Baroncini, FY 11 $ 35,000 2011 City of Literature (begun in FY 09) $ 50,000 2011 En led Theater (begun in FY09 $ 50,000 2011 Mercer (final rebate) $ 27,499 2011 Mission Creek ($3,362 Comm Event Prog; no ED rec) 2011 Pepperwood Place 517 $ 130,853 2011 Plamor Redevelopment (617) $ 34,654 2011 Press Citizen (113) $ 6,600 2011 The Paper Nest, FY 11 $ 11,000 2011 United Natural Foods (final rebate) $ 33,098 2011 Vito's Building Rehab, FY11 $ 250,000 TOTALS $ 106,600 $ 46,000 $ 250,000 $ - $ 354,041 2010 AI la #1 515 $ 98,342 2010 City of Literature (begun in FY 09) $ 50,000 2010 Corridor Drywall, FY 10 $ 35,000 2010 Eng led Theater (begun in FY09 $ 50,000 2010 Mercer (617) $ 95,491 2010 Mission Creek ($5,000 Comm Event Prog; no ED roc) 2010 MGD Sycamore Mall 71 $ 343,494 2010 Pepperwood Place(417) $ 105,115 2010 Plamor Redevelopment (517) $ 34,409 2010 United Natural Foods (415) $ 277,338 TOTALS $ 100,000 $ - $ 35,000 $ - $ - $ 954,189 Iowa City Building Change Program 2013-2015 Downtown District 1 � 1 1p L CITY OF IOWA ,(,ITY Tim Y I I .M d, F, Da,1,, L "i -on u 1 IT RISC, 6 � r AIM g ti 1 r Former Whitey's Building — Owned by Mark Ginsberg v L% GEs R� 11ZA 0 C ' W W Z Y t I Sports Column - Before r 10 Sports Column -After ;-O 67, Sports Column Mural Alley side 16 .1 e III a m�mm go woo" BEFORE r c ilk � i A •�� f iug� �i € .- '.�7 e f- .- & r � r I It ll 1-7 B' 1 $NOE$ SSA cpp7ANl TTOOK ET , FIT, cr J t l e M I+ � cn�cHrvr�� outdoor apparel and accessories 3f E ri. 4 u I r A will •yh+ct{ r. i Ar now A ti op GIUMNOLL LCA-Tion EST- 4WO2 f-■ DS -p di I - wm _ apN<X[gaS a ® i JLto_. a' \ l - URRITC - IS WLI 1 W*MT01 911RRff0f BLiIER BURL irtESX-1PFSSED 10A71fU5 Building Change Grant Summary Year Grant type Project Grant Total project costs FY15 30%grant Cold Stone (completed) $ 17,100.00 $ 53,250.00 FY15 30%grant Sports Column (underway) $ 29,610.00 $ 42,300.00 FY15 30%grant Martinis (underway) $ 23,995.00 $ 75,450.00 FY15 30%grant Yotopia (Completed) $ 3,581.40 $ 13,300.00 FY15 30%grant Joe's Place (withdrawn) Withdrawn FY15 30%grant Airliner/Austin Burke (Winter/Spring 2016) $ 30,000.00 $ 100,000.00 FY15 Subtotal $ 104,286.40 $ 284,300.00 FY14 40% grant Atlas - CDBG $ 47,704.00 $ 119,260.00 FY14Subtotal $ 47,704.00 $ 119,260.00 FY13 40% grant Active Endeavors - CDBG $ 16,000.00 $ 47,000.00 FY13 40% grant Bo James - CDBG $ 40,000.00 $ 107,000.00 FY13 40% grant Quintons -CDBG $ 27,733.00 $ 122,000.00 FY13 30%grant GrossSix Building $ 37,729.00 $ 125,763.33 FY13 30%grant Pancheros $ 19,857.00 $ 66,190.00 FY13 30%grant Chait Galleries $ 8,028.00 $ 26,760.00 FY13 30%grant Yacht Club $ 5,699.44 $ 18,998.13 FY13SubtotaI $ 155,046.44 $ 513,711.47 All FY13 & 14 Projects Completed Grant Total $ 307,036.84 $ 917,271.47 24 Building Change Loan Summary (Partnership with Hills, MidWestOne & UICCU) 2/17/2015 0% Int Forbidden Planet (Completed) $ 3,604.00 $ 7,208.00 12/1/2014 0% Int Oasis Falafel (Completed) $ 4,265.75 $ 8,531.50 11/28/2015 0% Int Marc Ginsberg (former Whitey's bldg) - Completed $ 30,000.00 $ 106,517.00 Approved 0% Int Bread Garden (Winter/Spring 2016) $ 30,000.00 $ 60,000.00 Loan Total $ 67,869.75 $ 182,256.50 Projects Approved/Completed as of 10/30/2015 Combined Total $ 388,037.15 $ 1,143,296.50 Staff Contact: Tracy Hightshoe, Neighborhood Services Coordinator 319.356.5244 tracy-hightshoe@iowa?5city.org I � Economic Development Policies April, 2014 It shall be the policy of the City of Iowa City to use the City "V%MMD— --�C Council Strategic Plan as the basis for its economic CITY ®�®� CITY development activities. Inherent in the plan is to attract new development including residential, commercial and industrial uses to grow the tax base. Further, the purpose of the plan is to retain the City's existing businesses and to encourage business expansion. The City's Strategic Plan also supports organizations which help to incubate, foster and grow new business operations by providing non-traditional collaborative environments. The expected result of these activities are: increased economic activity, more jobs, lower unemployment, higher wages, greater property values, more tax revenues, more ownership and entrepreneurial opportunities and revitalization of underutilized or blighted areas. The City will consider the use of financial incentive programs including City, State and Federal economic development funds, tax increment financing, public private partnerships and other tools in order to achieve the expected results. It will be the policy of the City of Iowa City to endeavor to attract, recruit, retain, foster and develop business that is new to our region or metropolitan statistical area (MSA) through the use of incentives. The City will not actively recruit business from other jurisdictions within our MSA unless a business is seeking to expand or a business is considering relocation outside the state. Should businesses from jurisdictions within our MSA wish to locate in Iowa City we will notify our neighboring jurisdiction of the interest. It will be the general practice of the City of Iowa City to not provide economic incentives to businesses wishing to relocate from another jurisdiction within our MSA unless a business is seeking to expand or considering a relocation outside the state. Projects requesting City financial assistance will be subject to a financial analysis which determines if City financial assistance is appropriate. The analysis will examine all financing sources for a project and the project costs, with scrutiny of the developers return based largely on developer equity and the maximization of project debt. This process allows consideration of public financing that fills a gap and precludes undue enrichment to the developer. Special consideration may be given to projects where the City is competing outside our MSA for interstate commerce business. The use of TIF rebates shall be considered highly preferable to the alternative, "cash upfront" TIF. Additionally, various evaluative tools including financial pro-formas, written evaluation reports, established benefit metrics, and other performance tools may be used to evaluate the use of economic incentives from the early stages of project development through the issuance of an incentive and post incentive to make sure the objectives are met. Developers who receive incentives will be expected to enter into development agreements which delineate the terms, conditions, understandings, expected results and the performance measures required for receiving incentives. For up front financing security is required. rzy When incentive programs are used, they will be used to maximize the benefits to the City of Iowa City. The dollar amount and time duration of the incentive shall be the smallest amount necessary to achieve the maximum amount of city benefit as determined by the City. In return for public financial assistance, developers will be expected to meet all or some of the following minimum standards (not in priority order): Achieve high quality architectural and site design Offer energy efficiency and sustainability features beyond what is required through adopted building codes If a residential project, the contribution to an affordable housing fund or the provision of a certain percent of affordable housing units within the project Creation and retention of high quality jobs Developer equity (not including debt) to be equal to or greater than the public financing requested The redevelopment of underutilized and/or blighted properties Projects achieving public purposes as detailed in the comprehensive plan, Urban Renewal Area planning documents, and/or the City Council adopted Strategic Plan. Despite the need for the program to be flexible and nimble in order to respond to the ever changing economic conditions of the marketplace, it will be the policy of the City to ensure that the process of using incentives is an open and transparent public process which instills confidence in the public's understanding of how economic development incentives are utilized. See also companion documents: Understanding Iowa City's Due Diligence Process for Gap Financing with TIF Application for Gap Financing Key Elements in Financial Analysis M �r Understanding Iowa City's due diligence process for gap financing with TIF M�—M=M=Mb;J What to expect, time -wise CITY OF IOWA CITY To be eligible for Tax Increment Financing (TIF) a developer must show a public benefit to the project and a financial gap to fill. The City may provide gap financing to projects in designated areas meeting public policy goals. Projects must be structured so that private debt is maximized and developer equity yields a fair return while not providing undue enrichment to the developer. City policy for financial participation in development projects is to be "the last dollars in," if merited, and should not exceed developer equity. After all other financing is secured, a developer may submit an application and the City will conduct its due diligence. This will involve a thorough analysis of all the project costs including design, land acquisition, construction loan and permanent financing and projected revenues and expenses in the operation of the building over 20 years. Through this analysis, we are able to confirm a stabilized net operating income, the fair market value of the project and most importantly, whether projected returns to the developer are reasonable. Once a project appears to show a reasonable financial gap which could be funded with City assistance, City staff must 1) amend the appropriate urban renewal plan to include the project (if necessary) and 2) negotiate a development agreement that among other things, stipulates the type of funding-- rebate or cash up front, a minimum assessment of the property to ensure that the City is repaid in property taxes (if financing is cash up front and not rebated), and the details of the minimum improvements, etc. Here is an estimated timeline for the required steps. It could move a bit faster, but this is a realistic scenario if everything falls into place. If the developer: • Has a well-defined concept plan for design and financing of the project, and • has provided all the financial information in the application for gap financing, then City can provide an initial analysis within two weeks. If/when the financial analysis meets the City's Economic Development standards, in that there is a public benefit to the project and: • there is a financial gap, and • the City participation would be last dollars in, and • the developers would net a reasonable return (as determined by research conducted by our consultant at the National Development Council (NDC)), then we can begin negotiating a development agreement. The development agreement can be drafted within 10 working days, once the developer and the City have agreed to the basic terms. When we have a draft development agreement to which all can agree: 1. We may simultaneously send the draft agreement and a staff recommendation to the Economic Development Committee (a subcommittee of the City Council). This requires at Understanding gap analysis, p.1 01.1 least a week's time for scheduling the ED committee meeting and for staff to write a supporting document to send out with the meeting packet, and We will start the process of amending the Urban Renewal Plan to include the specifics about your project. This requires two City Council meetings, which can usually be accomplished in about six weeks, given the required time for meeting notices and packet assembly. The first of the two meetings is for a "Resolution of Necessity" and the second, approximately a month later, is to adopt the amendment to the plan. If a Development Agreement has been signed by all parties, prior to that 2nd City Council meeting adopting the plan, then A resolution to approve the Developers Agreement can also be on the same agenda — providing the Urban Renewal Plan amendment was approved earlier. Cash up front TIF vs TIF Rebates = who bears the greatest risk? Cash up front TIFs are politically and financially more difficult. For cash up front, we require, along with specific performance measures, that the developer agree to a minimum assessment on the project property (and sometimes, in addition to the project property, a minimum assessment on other property the developer owns within the district) for a certain period of years, to enable the City to pay itself back with the TIF increment generated from the project (and if required, the additional developer -owned property in the area). The duration and dollar amount determined for the minimum assessment includes the City (public's) cost of financing the project until it is recaptured by the TIF revenues the project generates. This option is more expensive and requires the City bear more risk than the other option — TIF rebates — which is why it is more difficult, politically. TIF rebates are still political, but they put most of the risk on the developer. They are simpler because they only require that the taxes paid on a successful development be rebated back to the developer — with no financing costs and no risk to the public — with the exception of the diversion of tax dollars to the TIF fund. If the financial gap in a project could be covered by a TIF rebate as opposed to cash up front, it is highly preferable. Tax rebates would begin about 18 months after taxes were paid in due to the lag time in property tax assessment year and revenue collections. It is important to note that while property taxes are paid at the Consolidated Property Tax Levy ($38.64 per $1000 valuation in FY14, and subject to change annually), the TIF levy, and rebates are calculated at a lower rate ($30.36 per $1000 for FY 14, and subject to change annually). Definitions of key elements of the gap analysis process Gap A financial gap is determined by the difference between all financing sources for a project and the project costs, with a focus on the developer's return, which is based in large part on developer equity and the maximization (attraction) of project debt. This allows consideration of public financing that fills a gap yet does not provide for undue enrichment to the developer. Market standards apply. Among other things, our gap analysis requires a firm project development budget and operating pro forma supported by an independent market study. In the end, a recommendation to Council will hinge on the reasonability of the developer's return, public benefit and availability of public financing. The gap is not simply the difference between how much a desirable project costs and the financial resources to which a developer has access. Understanding gap analysis, p.2 04*1 Equity In the context of real estate development, equity is the difference between the current market value of the property and the amount the owner still owes on the remaining debt for it. It is the amount that the owner would receive after selling a property and paying off all debt on it. Capitalization Rate A "cap rate" determines value of a project. It is the number of cents of project income (net operating income, NOI, or annual cash flow) required by an investor for every dollar of purchase price paid. If a developer demanded a 7% cap rate, they would be willing to pay $1 for every 7¢ of NOI. If they demanded a 10% cap rate, they would be willing to pay $1 for every 100 of NOI. Higher cap rates mean there is higher risk indicated by the investor's requirement for more of the annual cash flow. It measures a return on all invested capital - debt and equity. Market Cap Rate Market Cap Rates are used to determine value by comparable transactions in the same market. The same equation is used as for cap rates, but considers an entire market's actual transactions, as compared to the investor's individual demands. Market cap rates in downtown Iowa City are in the 7% range; in an area that struggles economically, the market cap rate would be expected to be slightly higher. For in-depth information on the specifics of Iowa City's gap analysis, please see the companion document: Key elements to the financial analysis If you have any questions, please feel free to contact me at any time: Wendy Ford Economic Development Coordinator wendy-ford@iowa-city.org 319-356-5248 Understanding gap analysis, p.3 011 Key elements to the financial analysis 1) Know how we define Financing Gap. Total Project Costs - Permanent Debt (maximized) - Condo sales (commercial or residential) - Equity (sized to a market return) = Financing Gap 2) Evaluation of Project Cost Summary. Are costs reasonable? Shows what it costs to get the building out of the ground. Acquisition Cost + Renovation/Construction Cost + Fees = Project Cost � r CITY OF IOWA CITY 3) Evaluation of 20 year Operating Pro forma. Are operating assumptions reasonable? Shows income stream from project, in particular, the stabilized NOI * (net operating income), which is critical in determining value for lenders and other investors. See below how NOI is used to compute fair market value. Gross Rent + Tenant Contributions = Gross Income Vacancy Contingency = Effective Gross Rent (EGR) Operating Expenses = Net Operating Income (NOI) Debt Service #1 Debt Service #2 = Cash Flow 4) How amount of Permanent Debt determined ➢ Lender Underwriting Criteria applied to Projected NOI • Loan to Value Ratio • Debt Coverage Ratio • Capitalization Rate ➢ Interest Rate ➢ Term (Maturity and Amortization) 5) Determination of Fair Market Value (FMV) of the Completed Project FMV = Net Operating Income (NOI) Capitalization Rate 31 Solving for Fair Market Value -- a property with an annual NOI of $20,000 where the desired cap rate is 10.5% puts the value at $190,500. The higher the cap rate, the lower the value. Fair Market Value = NOI $20,000 = $190,500 Cap Rate .105 Conversely, you can solve for a cap rate, by flipping the equation. Cap. Rate = NOI FMV or Sale Price (sale price of comps if solving for market cap rate) Cap rate expresses "for X flow of income (the NOI), at Y price, I expect this rate of return." 6) Determination of maximum loan size by each of two methods, to ensure maximum loan capacity is taken on by developers; also referred to as debt that can be attracted to the project. a) Banks require a certain Debt Coverage Ratio (DCR). A common DCR is 1.2 to 1.35 which means for every $1 in debt, you must have $1.20 to $1.35 of net operating income. Loan Size By DCR = NOI * Debt Service (D/S) To solve for a loan size based on DCR, use 2 step process: 1. D/S = NOI DCR 2. Loan = D/S "c" (terms of the loan: duration and interest rate) b) Banks also require a certain Loan to Value (LTV) ratio, which measures a 2nd way out of the deal. Common local Loan to Value ratios are .75 - .8, which requires that for every 75 or 80 cents of loan, there must be at least $1 in fair market value. Loan Size By LTV = Loan Size Fair Market Value (FMV) To solve for a loan size based on LTV, use 2 step process: 1. FMV = NOI * Cap Rate required 2. Loan = FMV x LTV 7) Measuring reasonable returns to the developer is a critical part of the financial analysis process. Here are 2 common ways to measure returns. 04 Cash on Cash Return Cash Flow = Money out of a deal = CF out Equity Invested Money in the deal EQ (in) While cash on cash returns in the mid- to high -teens are desirable for privately owned investments, this level of return is high. A 10% return would be considered more acceptable for City participation in financing a project. Reducing costs and/or increasing equity are the primary ways to effect change in this number. Cash on cash measures a developer's cash flow as a percent of their equity investment. Internal Rate of Return (IRR) The all-important IRR measure combines all benefits, of owning real estate, after taxes, and converts them to a single rate of return. IRR is the discount rate at which the present value (PV) of a stream of income equals the equity investment. Specifically it measures the owner's return on equity invested and provides City staff one of the standards for evaluating whether a developer's return is fair when City financing is included among funding sources. An IRR in the teens is great for privately owned investments but is too high to justify City participation unless there are extenuating circumstances. A more modest 7%- 8% IRR might be considered. Further explanation of IRR: Perhaps a good way to illustrate IRR is to show an illustration of 2 ten-year equity investments of $1,000 - each with different returns in annual cash flows, yet each resulting in a 10% IRR: Year Present Value (PV) of $1.00 @ 10% return Returns on Scenario A Present Value of Scenario A returns Returns on Scenario B Present Value of Scenario B returns 1 $0.9091 $10 $9.09 $500 $454.55 2 $0.8264 20 $16.53 500 $413.20 3 $0.7513 30 $22.54 300 $225.39 4 $0.6830 100 $68.30 300 $204.90 5 $0.6209 200 $124.18 200 $124.18 6 $0.5645 300 $169.35 200 $112.90 7 $0.5132 400 $205.28 1 250 $128.30 8 $0.4665 600 $279.90 247 $115.23 9 $0.4241 600 $254.46 200 $84.82 10 $0.3855 2,250 $867.38 400 $154.20 $2,017.00 $2,017.67 Note that that the present value of Scenario A and Scenario B returns are nearly equal due to the time value of money, even though the returns to the investor are so vastly different in the initial years. 33 DATE: December, 2015 TO: File RE: Alpla Developer's Agreement Status (Alpla #1) (Heinz Rd. Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: approved by resolution 03-89, 3/19/2003 Certification of Completion: recorded 10/22/2004, book 3808 page 230-232 Amendments: none Performance Measures: Make improvements to existing 56,000 square foot plant through construction of additional manufacturing, warehousing or distribution space totaling approximately 86,000 square feet. Increase the assessed value by 15% over 1/1/2003. From 3/1/2004 until termination, maintain a minimum of 35 FTEs. Pay all property taxes due. Rebate Schedule: 5 Year — 100%, Maximum $510,000 including a $35,000 Grant; final rebate will be 6/1/2010. Results: The January 1, 2009 assessment is an approximate $3.24 million increase over the January 1, 2003 assessment — a 90% increase in taxable value. As of Nov. 2009, Alpla employed of 251 FTEs with an average hourly wage of $16.55. Their total Iowa City payroll exceeds $8.6 million per year. Valuations, Taxes Paid and Incentives: The following table provides a review of the Alpla TIF project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year's assessed value. The January 1, 2003 assessment is the base year for the Heinz Road Urban Renewal Area and this specific redevelopment agreement. Valuation Fiscal Assessed Property Taxes Rebate yr Net Taxes Year Year Value Taxes Paid Rebated Pay dates Paid Jan-02 2003-04 $6,966 $150 Jan-03a 2004-05 $3,594,340b $39,242 Jan-04 2005-06 $6,358,420 $166,110 $87,049 6-1-06 1 $79,061 Jan-05 2006-07 $6,760,750 $199,652 $92,247 6-1-07 2 $107,405 Jan-06 2007-08 $6,760,750 $222,714 $94,815 6-1-08 3 $127,889 Jan-07 2008-09 $6,842,210 $222,714 $81,557 6-1-09 4 $141,156 Jan-08 2009-10 $6,842,210 $277,764 $98,342= 6-1-10 5 $179,422 Sub total $454,010 $634,944 + grantinN04 $35,000 Total $489,010 Jan-15 2016-17 $7,308,610 Property Taxes Paid Include the City, County and School District. Parcel #: 10-24-151-002 a Base year. Each year the base value was modified to remove value included in partial property tax exemption (to avoid giving tax rebate on already exempted value) and to remove increased value over proportion of the original investment. The original investment accounts for 56.53% of the full assessed value. ` Final rebate, payable 6/1/2010, Reached time limit before dollar limit, $20,990 short of maximum. 61 DATE: December, 2015 TO: File RE: Alpla Developer's Agreement Status (Alpla #2) (Heinz Rd. Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: approved by resolution 07-250, 8/21/2007 Certification of Completion: recorded 10/02/2009, book 4511 page 765-766 Amendments: none Performance Measures: Improvements to existing 100,255 square foot freestanding Alpla plant through construction of additional manufacturing, warehousing or distribution space totaling approximately 82,200 square feet. Increase the assessed value by 15% over 1/1/07. Employment: From 9/1/07 until 11/1/09 maintain a minimum of 180 FTEs. Commencing with the first certification on 11/1/09, employ on average, 25 new full time positions at an average hourly wage of $14.00 per hour plus competitive benefit package until at least the termination date. Pay all property taxes due. Rebate Schedule: 4 Year — 100%, Maximum $600,000; If all performance measures met, first rebate made 6/1/11 and final rebate 6/1/14. Results: Rebates completed in June, 2014. At that time, there were 261 total employees averaging more than $17.21 per hour. New construction and improvements have added $4.55 million in new taxable value over the base year of Jan. 2007, a 99.4% increase. Valuations, Taxes Paid, Incentives: The following table provides a review of the Alpla TIF project #2, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year's assessed value. Valuation Fiscal Assessed Property Taxes Rebate yr Net Taxes Year Year Value Taxes Paid Rebated Pay Paid dates Jan-07a 2008-09 $4,585,250 $222,714 Jan-08 2009-10 $6,842,210 $277,764 Jan-09 2010-11 $8,427,350 $344,807 $127,937 6-1-11 1 $216,870 Jan-10 2011-12 $8,427,350 $343,446 $126,834 6-1-12 2 $216,612 Jan-11 2012-13 $9,040,020 $375,153 $141,932 6-1-13 3 $233,220 Jan-12 2013-14 $9,042,430 $367,472 $135,361 6-1-14 4 $232,111 Total $532,065 $898,812 Jan-15 2016-17 $9,367,860 Property Taxes Paid to all jurisdictions: City, County and School District. Parcel #: 1024130001 a Base year. 62 DATE: January, 2016 TO: File RE: Hilton Garden Inn (City -University Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: approved by resolution 15-87. TIF and hotel/motel tax rebates derived from the tax increment from the Hilton Garden Inn property, 50% of the total hotel/motel tax collected from the Hilton Garden Inn (only), and when the developer's property known as 314 S. Clinton St. is completed and has reached an assessed value of at least $18,600,000 and property taxes are paid on this value, the City shall also make an economic development grant to the developer of $250,000 per fiscal year of those tax increments deposited into the 314 S. Clinton St. account. Certification of Completion: Performance Measures: Deemed a strategic location adjacent to the new UI School of Music, and the selected site for the new UI Museum of Art, the hotel is a $33 million project with a demonstrated $8.8 million financial gap. Property taxes paid on the site will increase from approximately $11,000 to $582,500 per year. In exchange for the recommended $8.8 assistance, the owner has indicated they agree to complete the Minimum Improvements generally consisting of construction of a 12-story Hilton Garden Inn hotel with 144 bedrooms, a meeting/event center, a roof top food and beverage venue, a restaurant, and a pool/spa/fitness area, all as described more fully on Exhibit B ("Minimum Improvements") in the Development Agreement. The Redeveloper hereby commits to a Project that includes a minimum total of $33,205,936 in project costs. By January 1, 2018, the construction of the Minimum Improvements must increase the actual assessed value of the Development Property to at least $15,120,000. Rebate Schedule: up to 21 annual rebates not to exceed $8,800,000. Results: Groundbreaking ceremony, December 22, 2015. Chronological Overview: Valuation Fiscal Assessed Jan-14 2015-16 $1,004,480 Jan-15 2016-17 $1,364,880 Jan-16 2017-18 Jan-17 2018-19 Jan-18 2019-20 Jan-19 2020-21 Jan-20 2021-22 Jan-21 2022-23 Jan-22 2023-24 Property Taxes Rebate yr Net Taxes 6/1/2018 6/1/2019 6/1/2020 6/1/2021 6/1/2022 6/1/2023 6/1/2024 rx3 DATE: January, 2016 TO: File RE: Iowa City Marketplace Agreement Status (Sycamore and First Avenue URA) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: resolution 14-327 on 11-18-14, recorded 1/12/15 book 5322, page 266-302; amendments (none). Certification of Completion: Performance Measures: Minimum improvements include interior remodeling, exterior fagade renovations, and related parking lot, signage, landscaping and streetscape elements. The assessed value must increase by 15% over January 1, 2014 base value of $10,015,520, so the January 1, 2016 valuation must be at least $11,517,848. Developer's investment must be $4.4 million including architectural, design and engineering fees, costs of building permits, inspection fees, developer fees (not to exceed 5%) construction management fees, demolition costs, and reasonable contingency, including all costs and expenses relation to the exterior landscape, building fagade, and parking lot improvements. Costs must be documented in engineer's certificate on or before November 1, 2017. New signage must comply with Exhibit C, in the agreement. Any exterior changes must be approved by City Staff Design Review Committee, prior to obtaining building permit. Developer to certify that by November I, 2015, at least 65% of the gross leasable floor space of the Development Property is occupied by an Active Tenant (155,496 square feet). On November 1, 2016, the Developer will certify that 75% of the gross leasable floor space of the Development Property is occupied by an Active Tenant 1179,418 square feet). Beginning on November 1, 2017, and until the Termination Date, the Developer will certify that during ten of the twelve previous months, 80% of the gross leasable floor space of the Development Property has been occupied by an Active Tenant (191,380 square feet). Rebate Schedule: Up to seven (7) consecutive annual payments of $250,000 to the Developer beginning June 1, 2018 and ending on June 1, 2024. The payment is comprised of 100% of the tax increments plus the difference between 100% of the tax increments and $250,000. For example, if the tax increment was $200,000, the Developer would receive that amount plus $50,000 (to equal $250,000 total). The total aggregate amount of all economic development grants in this agreement shall not exceed $1,750,000. Results: Lucky Markets, anchor tenant opened in July 2015. Chronological Overview: Valuation Fiscal Assessed Property Taxes Rebate yr Net Taxes Year Year Value Taxes Paid Rebated Pay dates Paid Jan-13 2014-15 $ 11,479,070 $ 420,148 Jan-14 2015-16 $ 10,015,520 $ 349,842 Jan-15 2016-17 $ 10,514,000 $ - Jan-16 2017-18 6/1/2018 1 Jan-17 2018-19 6/1/2019 2 Jan-18 2019-20 6/1/2020 3 Jan-19 2020-21 6/1/2021 4 Jan-20 2021-22 6/1/2022 5 Jan-21 2022-23 6/1/2023 6 Jan-22 2023-24 6/1/2024 7 Property Taxes Paid Include the City, County and School District. Parcel #:1014457007 ME DATE: December, 2015 TO: File RE: MDK Medical Office Building Agreement Status (Towncrest Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: By resolution 12-314, June 19, 2012; no amendments Description: This was the first private redevelopment project in the Towncrest Urban Renewal Area, established in 2010. Also in 2010, the City had engaged a design firm to create a set of Towncrest Design Guidelines to encourage and guide a transition from the 1950s and 60s Colonial aesthetic to a fresh, more updated look. The design guidelines can be applicable to new construction and the rehabilitation of existing construction. The City had also reserved funding for early (catalyst) projects that would use the new design standards while meeting other goals of the urban renewal area. This project involved the redevelopment of a former gas station property at 2611 Muscatine and an office building at 1020 William Street, a property directly behind, which had a shared wall and property line with 1030 William Street. The building at 1020 William Street was demolished along with the gas station for the property assembly. Developers built two one-story medical office buildings with a drive between them to access the parking area in back. Performance Measures: Minimum improvements were to acquire and demolish existing structures to construct a one-story building approximately 14,850 SF for commercial and medical offices using the Towncrest Design Plan Standards. No less than 2/3 of the square footage could be built for and occupied by medical offices with the remainder available for any allowable use. Developer must also provide, at a minimum, at least 50 parking spaces on site and dedicate right of way (at no cost to the City) for the creation of 22 additional on -street perpendicular parking spaces (at the City's cost). Amount of Assistance: For the $5,069,344 construction costs of the project, the City granted a $625,000 construction grant payable as construction occurred. The City also made a forgivable loan of $300,000 through the Gap Financing for Towncrest Catalyst Projects fund. Finally, the City provided a $25,000 matching grant for predevelopment expenses, which also came from Towncrest redevelopment funds. Results: Eye Associates and Towncrest Dental moved in to the new medical office spaces immediately; a labor union office moved in to the remaining office space in 2015. Valuations, Taxes Paid and Incentives Valuation Fiscal Assessed Property Economic Year Year Value Taxes Paid Development Grants Jan-13 2014-15 $882,300a $32,293 $950,000 Jan-14 2015-16 $2,420,350 $84,543 Jan-15 2016-17 $2,453,970 Property Taxes Paid Include the City, County and School District. Parcels: 101337001 Union office, 101337002 dental office, 101337003 eye associates. a base value 19.7 DATE: January, 2016 TO: File RE: Mercer (formerly Seabury & Smith) Developer's Agreement Status (Northgate Corporate Park Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: approved by resolution 01-236, 7/31/2001, recorded 9/18/2002 Performance Measures: Construction of a new office building of at least 46,000 square feet at a $4,825,000 construction cost. Beginning 7/31/03, maintain a monthly average of at least 202 full time equivalents (FTEs) and 25 part time employment units. FTE hourly wage will be no less than $11.30 and average no less than $15.70/hour and have competitive benefits. Part time employees' average wage will be at least $8.00. Rebate Schedule: 10 Year declining rate rebate (see below for schedule); maximum $781,200. Results: The January 1, 2009 assessment resulted in an approximately $5.8 million increase from the January 1, 2002 assessment; a 2000% increase in taxable value. For their final certification, on Nov. 1, 2009, Mercer certified 275 full time employees with an average wage of $18.68 per hour, indicating Mercer's payroll is over $10.6 million annually. The January, 2015 assessment was $7,314,220. Chronological Overview: The following table provides a review of the Mercer (originally Seabury and Smith) TIF project, associated property values, taxes collected and taxes rebated. The agreement rebated the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year's assessed value on a declining scale each year. The January 1, 2002 assessment is the base year for the Northgate Corporate Park Urban Renewal Area and this redevelopment agreement. Valuation Fiscal Assessed Property Taxes TIF declining Rebate yr Net Taxes Year Year Value Taxes Paid Rebated scale Pay dates Paid Jan-01 2002-03 $208,250 $9,248 NA NA Jan-02 a 2003-04 $264,520 $9,852 NA NA Jan-03 2004-05 $4,722,360 $173,554 $134,109 100% 6/1/05 1 $39,445 Jan-04 2005-06 $5,205,680 $199,666 $140,050 90% 6/1/06 2 $59,616 Jan-05 2006-07 $5,881,350 $222,910 $141,042 80% 6/1/07 3 $81,869 Jan-06 2007-08 $5,922,890 $229,988 $127,785 70% 6/1/08 4 $102,203 Jan-07 2008-09 $6,040,690 $244,397 $115,224 60% 6/1/09 5 $129,173 Jan-08 2009-10 $6,040,690 $245,226 $95,491 50% 6/1/10 6 $149,735 Jan-09 2010-11 $6,040,690 $247,146 $27,499b 40% 6/1/11 7 $219,657 30% 8 20% 9 10% 10 Total $781,200 Jan-15 2016-17 $7,314,220 Property Taxes Paid Include the City, County and School District. Parcel #: 07-36-303-005 $t61,696 a Base year. Final rebate. This amount meets the $781,200 maximum before the 10 year maximum. 66 DATE: January, 2016 TO: File RE: Owens -Brockway (formerly Graham Packaging) Developer's Agreement Status (Scott Six Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: approved by resolution 01-237 on 10/08/2001; recorded 9/18/02 book 3381, pg 576 Certification of Completion: not on file Performance Measures: Owens Brockway agreed to maintain 22 full time equivalent positions at an average of at least $13.43/hour plus competitive benefits. Rebate Schedule: 5 Yrs — 100% with a $695,550 maximum Results: The January 1, 2008 assessment is a $5.79 million increase over the January 1, 2001 assessment. At their final certification, in Nov. 2007, they employed 56 full time equivalents and the average hourly wage was $16.75. Owens Brockway's annual payroll in Iowa City for the preceding twelve months was more than $1.9 million. Owens Brockway elected to forego the rebate for the January 1, 2002 assessment, as they had not completed all proposed improvements. They requested that the 5-year 100% rebate apply to the full value of the proposed Minimum Improvements. The contract specifies that the City will make five consecutive annual payments commencing June 1, 2005. Overview: The following table provides a review of the Owens -Brockway (formerly Graham Packaging) TIF project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid in excess of the base year's assessed value. The January 1, 2001 assessment is the base year for the Scott Six Urban Renewal area and this redevelopment agreement. Valuation Fiscal Assessed Property Taxes Rebate Net Taxes Year Year Value Taxes Paid Rebated Pay dates Paid Jan-01 a 2002-03 $30,010 $858 NA NA Jan-02 2003-04 $2,398,650 $89,342 NA NA Jan-03 2004-05 $5,037,870 $186,536 $150,656 611105 $35,880 Jan-04 2005-06 $5,346,840 $205,080 $167,442 611106 $37,638 Jan-05 2006-07 $5,471,100 $209,137 $170,786 611107 $38,351 Jan-06 2007-08 $5,510,030 $210,625 $176,796 6/1/08 $33,830 Jan-07 2008-09 $5,816,790 $222,351 $29,871 e 6/1/09 $206,101 Jan-08 2009-10 $5,826,050 $236,348 $0 N/A $236,348 Total $695,550 $588,148 Jan-15 2016-17 $6,176,830 Property Taxes Paid Include the City, County and School District. Parcel # 0919327016 a Base Year. Final Rebate Estimate — the maximum rebate allowable without surpassing the cap of $695,550. DATE: December, 2015 TO: File RE: Park at 201 Developer's Agreement Status (City University Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: By resolution 12-154, April 3, 2012. Description: Redevelopment of lot at 114 S. Dubuque St. from 1-story commercial building valued at $550,390 to 14 story mixed use building with a minimum assessment required of $5,750,000 on Park at 201 and $1,273,430 on 225 S. Linn St (Bread Garden commercial condo). Construction costs were estimated at $10,737,598. Amendments: none Performance Measures: Retail on street level, and mezzanine levels; Office space on levels 2, 3 and 4; Residential and/or office on levels 5-14. 16 one -bedroom units of 662 SF to be sold at workforce housing priced level of up to 150% area median income, 8 one bedroom units of 1,039 each and 2 luxury units of 2,000 SF. Amount of Assistance: $2,500,000 up front tax increment financing (reimbursable as portion of construction bills are paid). Results: Retail user on first and mezzanine floors (Buzz Salon); MetaCommunications purchased and moved into offices on floors 2-4; Digital Artefacts purchased one of two penthouses and converts to office space. Remainder is residential. Valuations, Taxes Paid, Incentives Valuation Fiscal Assessed Property Economic Year Year Value Taxes Development Paid Grant Jan-12* 2013-14 $550,390 $22,367 $2,500,000 Jan-13 2014-15 $2,879,730 $74,699 Jan-14 2015-16 $ 9,863,808 $246,570 Jan-15 2016-17 $10,160,280 *base value year (Property Taxes Paid Include the City, County and School District.) Y:3 DATE: January, 2016 TO: File RE: Southgate Development Company (Pepperwood) Developer's Agreement Status (Hwy 6 Commercial URA) FROM: Wendy Ford, Economic Development Coordinator Development Agreement: resolution 03-276 on 8-19-03; recorded 8-29-03 book 3627, page 537-574 Certification of Completion: 5-9-2007; recorded book 4161, page 760-763 Amendments: One, in November, 2008 changing process for exterior design changes to go through Economic Development Committee. Performance Measures: Increase assessed value of property beginning with the Jan. 1, 2005 assessment by at least 15% over that of Jan. 1, 2003. Occupancy rate of gross leasable square feet HAD TO BE be at least 65% on 11-1-04, 75% on 11-1-05, and 80% on 11-1-06 for at lease 10 of the previous 12 months. The 1st amendment details expectations for pedestrian walkways to be separated from vehicle traffic through landscaping, etc; that parking islands be curbed and landscaped; that the presence of the building should be strengthened for visibility from Hwy 6; that the use of color, materials, mass, signage, etc. should enhance the commercial environment; that awnings and signage should be integrated in the design concepts, that vertical roof extension and sign panels should have a finished appearance and the that material used within 5 feet of the finished grade be durable and resistant to damage. Rebate Schedule: 7 Years — 100%, $1,725,000 maximum. Results: With the Jan. 1, 2010 valuation there was an increase of $3.8 million in new taxable value since the base year of 2003; a 44.7% increase in taxable value. The total amount of rebates fell short of the $1,725,000 maximum approved due to lower -than -projected valuations; the time limit was reached before the dollar limit was reached. The Jan. 2015 valuations were $13,115,210. Chronological Overview: The following table provides a review of the Southgate Development Company's Pepperwood Plaza TIF project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year's assessed value. The January 1, 2003 assessment is the base year for the Hwy 6 Commercial Urban Renewal Area. The agreement states the City will rebate the taxes only on the Minimum Improvements listed in the Developer's Agreement. Base value was adjusted in 2008, as the property parcels were reconfigured. New base valuation became $8,745,932. Valuation Fiscal Assessed Property Taxes yr Net Year Year Value Taxes Paid Rebated F Jan-03a 2004-05 $8,677,520 $318,912 Jan-04 2005-06 $8,677,520 $332,830 Jan-05 2006-07 $10,896,530 $412,992 Jan-06 2007-08 $11,773,880 $457,185 Jan-07 2008-09 $11,917,390 $482,159 Jan-08 2009-10 $11,925,100 $484,108 Jan-09 2010-11 $12,675,590 $518,624 Jan-10 2011-12 $12,675,590 $516,577 Jan-11 2012-13 $12,610,980 Total Jan-15 2016-17 $13,115,210 Property Taxes Paid Include the City, County and School District. Property includes 10 parcels. NA NA $69,637 6/1/07 1 $343,355 $99,895 6/1/08 2 $357,290 $105,442 6/1/09 3 $376,717 $105,115 6/1/10 4 $378,992 $130,853 6/1/11 5 $387,771 $129,725 6/1/12 6 $386,852 $123,143 6/1/13 7 $374,980 $763,810 $2,605,807 a Base year 69 DATE: January, 2016 TO: File RE: Plamor property Developer's Agreement Status (Sycamore & First Avenue Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: By resolution 02-318 on 9-10-2002; recorded 9-24-02 book 3385, page 418 Certification of Completion: 11/7/2003; recorded 11/10/2003 book 3665, pages 132-134 Performance Measures: Improvements to existing 23,000 square foot structure and construction of a new approximate 4,600 square foot building for commercial use. Project had to increase actual assessed value of the development property by at lease 15% over assessed value on Jan. 1, 2002, beginning Jan. 1, 2004. On Nov. 1, 2003 at least 65% of the gross leasable space had to be occupied. On Nov. 1, 2004, 75% had to be occupied, and beginning Nov. 1, 2005 and each Nov. 1 until termination date, the property had to be at least 80% occupied for 10 of previous 12 months. Rebate Schedule: 7 Years - 100%, $400,000 maximum Results: The January 2010 assessment was an approximate $1.06 million increase over the base year 2002 assessment, a 107% increase in taxable valuation. The January, 2015 assessment is a 147% increase over the base year. The taxes rebates over the 7 years totaled $231,506. The maximum amount of $400,000 was not achieved because valuations proved lower than developer had estimated. Chronological Overview: The following table provides a review of the Plamor property TIF project, associated property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year's assessed value. Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid Jan-02 a 2003-04 $972,150 $36,210 NA NA Jan-03 2004-05 $966,070 $35,504 NA NA Jan-04 2005-06 $1,847,110 $70,848 $27,555 611106 1 $43,293 Jan-05 2006-07 $2,008,020 $76,106 $32,514 611107 2 $43,592 Jan-06 2007-08 $2,008,020 $77,972 $33,419 611108 3 $44,553 Jan-07 2008-09 $2,012,840 $81,436 $34,600 611109 4 $46,837 Jan-08 2009-10 $2,012,840 $81,713 $34,309 611110 5 $47,304 Jan-09 2010-11 $2,012,840 $82,356 $34,654 611111 6 $47,702 Jan-10 2011-12 $2,012,840 $82,031 $34,355 611112 7 $47,676 Total $231,506 $320,957 Jan-15 2016-17 $2,403,220 Property Taxes Paid Include the City, County and School District. Beginning 2003- 2 new parcels created - 10-14-486-007 and 10-14-486-008 a Base year 70 DATE: December, 2015 TO: File RE: Plaza Towers TIF Project Status (City -University District) FROM: Wendy Ford, Economic Development Coordinator Improvement and Sale of Land for Private Redevelopment: approved by resolution 02-253, July 16. 2002. Performance Measures: Construct a multi -use building with minimum construction cost of $22,265,000. Include commercial space including a 10,000 square foot full service grocery store, at least 18,000 square feet of new conference space, a boutique hotel and high end offices and residential units with a maximum of two bedrooms each for sale and for lease in the upper floors, a skywalk from the parking ramp through the building for easy access to the Pedestrian Mall and exterior entrance to the library. Minimum Assessment agreement: A minimum assessment agreement was used in this case to ensure that enough taxable value through improvements of two of the developer's projects would create the increase in property tax revenues necessary to pay off the bonds and reduce the risk to the City. The developer agreed to enter into a Minimum Assessment Agreement to establish a Minimum Actual Value for the land and Improvements for this project and the land and improvement of the Vogel property. Bond Sale Instead of providing rebates to the developer. The City sold $7.3 million in bonds and funded a $6 million construction grant to the developer to assist in financing the initial part of the project. When amortized over a 20 year period at rates varying between 4% and 5.4% a debt repayment schedule totaling $11,975,104 was created. Bond Repayment: After the several years of scheduled interest and principal payments on the bonds, the City had the option to pay off the remaining debt early. This was possible because the City collected the incremental tax revenues from the entire TIF district as opposed to just those associated with the project. All TIF revenue exceeding the scheduled debt repayment also collected interest in the Plaza Towers TIF repayment account and was used to retire the debt early. Overview: The City sold the land to the developer for $250,000 cash. The City issued bonds to pay for its $6 million part of the project. Results: The January 1, 2015 assessment showed an approximate $37 million increase over the January 1, 2004 assessment. The new taxable value, or the increment, of the Plaza Towers project is $28 million. The increment (difference between the taxable valuation in the base year and the current taxable valuations) in the entire district exceeds $85,000,000. Using the district's tax increment will have allowed the City to save upwards of $1.75 million dollars in interest by paying off the TIF debt early. Upon retiring the debt, the City directed the entire increment to be released back to all taxing entities, which was 12 years sooner than anticipated. The property tax revenues on Plaza Towers now generates upwards of $950,000 per year. Beginning in FY 2011, 100% of it began to flow to all taxing entities. 71 Valuation Fiscal Valuation of Valuation of Total Property Economic year Year commercial residential valuation Taxes Development property property Paid Grant Jan-03a 2004-05 Jan-04 2005-06 $6,000,000 Jan-05 2006-07 $7,107,740 $7,128,780 $14,236,520 $394,733 Jan-06 2007-08 $15,323,780 $15,373,810 $30,697,590 $867,007 Jan-07 2008-09 $14,296,350 $21,449,350 $35,745,700 $961,790 Jan-08 2009-10 $13,732,270 $21,656,310 $35,388,580 $958,271 Jan-09 2010-11 $13,905,130 $21,464,150 $35,369,280 $980,894 Jan-10 2011-12 $13,905,130 $21,480,800 $35,385,930 $991,527 Jan-11 2012-131 $11,279,720 $22,103,780 $33,383,500 $888,646 Jan-12 2013-14 $11,279,720 $22,087,550 $33,367,270 $886,589 Jan-13 2014-15 $11,536,400 $22,940,390 $34,476,790 $903,057 Jan-14 2015-16 $11,536,400 $23,278,330 $34,814,730 $906,498 Jan-15 2016-17 $12,774,970 $24,244,590 $37,019,560 Total Property taxes paid to date $8,739,011 a Base year SSMID collection begins: additional $2/$1000, continues through FY25 FA DATE: January, 2016 TO: file RE: Sycamore Mall (MGD L.C.) Developer's Agreement Status (Sycamore & First Avenue Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: approved by resolution 00-322, 9/19/2000, recorded 9/24/02 book 3385, page 385 Amendments: #1 by resolution 04-87, #2 in May 2004, #3 by resolution 08-243 — each having to do with transfer of ownership. The first amendment was executed in March, 2004 which allowed for the dissolution of the owners' development entity, comprised of multiple parties, to divide into individually owned L.C.s as tenants in common. The second amendment followed in May, 2004 when the group of individually owned L.C.s bought out Gerry Ambrose's interest. The third amendment allows the individually owned L.C.s to transfer their interests as tenants in common to three CORE Investment entities in order to reinvest in other local development projects. Hodge Commercial Management continues to operate the mall and will receive the TIF rebates if the performance terms of the agreement are met. Performance Measures: Make improvements to existing mall to increase assessed value by at least 15% over assessed value on Jan. 1. 2000. Must have one anchor retail store of at least 40,000 square feet and be 65% occupied by 11/1/2002. Must be 75% leased by 11/1/2003 and by 11/1/2004, 80% occupied for 10 of 12 previous months for the duration of the agreement Rebate Schedule: 7 Years — 100%, $2,000,000 maximum. Results: After the adoption of the Sycamore and First Avenue Urban Renewal Area, over $7.1 million in building permits were issued for the Sycamore Mall. The January 1, 2008 assessment was an approximate $10.3 million, or 222% increase over the January 1, 2000 assessment. Chronological Overview: The following table provides a review of the Sycamore Mall TIF project, property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year's assessed value. The January 1, 2000 assessment is the base year for this agreement. Valuation Year Fiscal Year Assessed Value Property Taxes Paid Taxes Rebated Rebate Pay dates yr Net Taxes Paid Jan-00 a 2001-02 $4,662,900 $152,958 NA NA Jan-01 2002-03 $4,662,900 $163,000 NA NA Jan-02 2003-04 $10,168,280 $378,736 $167,957 6/1/04 1 $210,779 Jan-03 2004-05 $11,073,730 $406,796 $192,862 6/1/05 2 $213,934 Jan-04 2005-06 $11,457,180 $439,444 $213,971 6/1/06 3 $225,473 Jan-05 2006-07 $12,696,150 $481,200 $252,149 6/1/07 4 $229,050 Jan-06 2007-08 $14,610,400 $567,328 $320,926 6/1/08 5 $246,402 Jan-07 2008-09 $15,051,730 $608,969 $345,399 6/1/09 6 $263,571 Jan-08 2009-10 $15,051,730 $610,035 $343,494 b 6/1/10 7 $267,542 Total $1,836,758 $1,656,751 Jan.15 2016-17 $10,514,000 Property Taxes Paid Include the City, County and School District. Parcel #: 1014457007 a Base year. b Final rebate. This project reached the time limit of 7 years of rebates before the dollar maximum of $2 million. 73 DATE: January, 2016 TO: File RE: United Natural Foods Developer's Agreement Status (Heinz Rd. Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: approved by resolution 03-205, 7/1/2003; amendments: one, by resolution 06-105, 4/4/06 Certification of Completion: recorded 10/25/2004, book 3809 page 233-235 Performance Measures: Improvements to existing 120,500 s.f. warehouse through construction of additional warehousing and/or distribution space, totaling 140,000 s.f. Increase the assessed value by 15% over 1/1/2003. Maintain minimum monthly average of 300 FTEs, with a minimum average hourly wage of $11.75 and no less than $10.00 per hour, or be subject to reduction in rebate by $1667 per shortfall in employment units. Pay all property taxes due. Rebate Schedule: 6 Year — 100% tax increment rebate; maximum $1,000,000. The original United Natural Foods TIF agreement was to reach employment of 300 full time equivalents with an average wage of at least $11.75/hour. Prior to the development project, they employed 218 full-time equivalents. The agreement was amended on April 47 2006, to a) extend the time frame to reach employment levels and b) to institute a clawback provision if employment levels fell short of 300. The clawback allowed the City to deduct $1,667 from the TIF rebate for every FTE UNFI fell short of 300 at the time of certification. Results: The January 1, 2009 assessment is an approximate $8.4 million increase from the January 1, 2003 assessment. In Nov. 2009, UNFI certified 306 full time equivalents with an average $17.36 hourly wage, exceeding $11 million per year in total payroll. Chronological Overview: The following table provides a review of the United Natural Foods Inc. TIF project, property values, taxes collected and taxes rebated. The agreement rebates the value of property taxes paid (less protected school, city and county debt levy) in excess of the base year's assessed value. The January 1, 2003 assessment is the base year for this agreement. Valuation Fiscal Assessed Property Taxes Rebate yr Net Taxes Paid Year Year Value Taxes Paid Rebated Pay dates Jan-02 2003-04 $4,351,170 $142,426 Jan-03 a 2004-05 $4,653,740 b $155,308 Jan-04 2005-06 $6,203,550 $227,272 Jan-05 2006-07 $12,947,600 $486,067 $169,784 - 6/1/07 1 $316,283 Jan-06 2007-08 $12,947,600 $494,932 $240,905 d 6/1/08 2 $261,856 Jan-07 2008-09 $13,094,510 $529,783 $278,876 a 6/1/09 3 $250,908 Jan-08 2009-10 $13,094,510 $531,581 $277,338 6/1/10 4 $254,243 Jan-09 2010-11 $13,094,510 $531,581 $33,098 g 6/1/11 5 $502,666 Total $1,000,000 $1,585,956 Jan-15 2016-17 $11,466,490 Property Taxes Paid Include the City, County and School District. Parcel # as of 2004: 10-24-178-012 a Base year. b Each year the base value was modified to reflect 35.94%of the full assessed value. At the time of the first rebate in June, 2007, 100%of the rebate would have been $256,468, but actual employment was at 248. Clawback was instituted as per agreement: 300-248 = 52 x $1667 = reduction of 100%rebate by $86,684, for $169,784. d At the time of the second rebate in June, 2008, 100%of the rebate would have been $267,576, but actual employment was at 284. Clawback was instituted as per agreement: 300-284 =16 x $1667 = reduction of 100%rebate by $26,668, for $240,905. e Full amount rebated, employment threshold met. Full amount rebated up to the total maximum amount of $1 million, employment threshold met. g Final rebate. This amount completes the $1 million maximum per the agreement, before the 6 year maximum. 74 DATE: January, 2016 TO: File RE: Packaging and Provisions Building (former Vito's building, 118 E. College) Developer's Agreement Status (City University Urban Renewal Area) FROM: Wendy Ford, Economic Development Coordinator Agreement: By resolution 11-163. Minimum Assessment Agreement recorded in book 4844, pages 865-873. Certification of Completion: expected in 2012. Amendments: none Performance Measures: Make improvements to existing building including new roof, elevator and HVAC systems. No part of the project may be used for an eating and drinking establishment, restaurant, or residential use. For each full year, November 1 to November 1 after the filing of the Certificate of Completion, and provided redeveloper operates the improvements in accordance with the terms and conditions of the agreement, the City will forgive 1/8 or $31,250 of the economic development grant. Amount of Assistance: $250,000 forgivable loan to be repaid to the City through TIF revenues. Results: Building renovation well underway; on -time completion expected. Chronological Overview: Valuation Fiscal Assessed Property Year Year Value Taxes Paid Jan-11 2012-13 $813,350 $33,754 Jan-12 2013-14 $813,350 $33,054 Jan-13 2014-15 $1,560,000 $59,082 Jan-14 2015-16 $1,605,790 $56,410 Jan-15 2016-17 $1,817,390 Jan-16 2017-18 $1,817,390 Jan-17 2018-19 Jan-18 2019-20 Jan-19 2020-21 Forqivable yr Cumulative Loan Amount of Loan Property Taxes Paid Include the City, County and School District. 1 $31,250 2 $62,500 3 $93,750 4 $125,000 5 $156,250 6 $187,500 7 $218,750 8 $250,000 Wi Tax Increment Financi1 ng What is Tax Increment Financing? A method of reallocating property taxes resulting from an increase in taxable valuation • The increment is the change between the former value and the new value • The only source of funds for cities to use for Economic Development incentives • Can be founded on basis of slum, blight or economic development or combination Tax Increment Financing Policies, , • High quality architectural and site design • Energy efficiency and sustainability above required building code standards • Affordable housing: provision of units or contribution to fund • Creation of high quality jobs • Developer equity equal to or greater than request • Redevelopment of underutilized or blighted property Other public benefits as detailed in comprehensive plan, urban renewal planning documents or City Council adopted Strategic Plan Avenue of Property Tax Exemption Areas A Central Business Distnet B Near Southside Commercial G Near Southside Residential Tax Increment Financing Districts 1 Northgate Corporate Park, 1999 2 Sycamore and First Avenue, 200D G-- 1 - I s r 3 Scott Six Intl usldal Pad*, 2001 8 Hwy. 6 Commercial Urban Renewal Are a, 2003 Zk 4 City -University Project 1, 2001 9 Moss Green Urban Vill age, 2010 fNv 5 Lower Muscatine Rd. & Mvy. 6, 2002 10 Towncres1, 2011 6 Industrial Park Road, 2002 �11 Riverside Dnve, 2012 1 Heinz Road, 2002 ® 12 Camp Cardinal Urban Renewal Area, 2013 onsi Public Goals & Objectives IF evelopers Risk 67 District (Bold) projects indented (not bold) Start date End Date Sycamore & First Avenue URA 2000 2020 Sycamore Mall 2004 2010 PlamorRedevelopment 2006 2011 Scott Six Industrial Park 2001 2021 Owens Brockway 2005 2009 City -University Project 2001 n/a* Plaza Towers 2004 2010 Vito's building rehab 2011 Park at201 2012 Riverside Drive 2013 2025 Northgate Corporate Park 2002 2022 Seabury & Smith 2005 2011 Heinz Road 2002 2022 Alpla of Iowa #1 2003 2010 Alpla of Iowa #2 2007 2014 Alpla of Iowa #3 2016 2019 United Natural Foods Inc. 2003 2011 Hwy 6 Commercial URA 2003 2023 Southgate Development ;Pepperwood) 2003 2013 Towncrest URA 2010 n/a* MDK Medical Office Building 2012 7: 2015 New Value Add'1 cost of Base Value of Assessed Created in TIF TIF Financing financing if Project Value projects to developer up front Total TIF cost $4,662,900 $10,015,520 $5,352,620 $1,836,758 $0 $1,836,758 $972,150 $2,403,220 $1,431,070 $231,506 $0 $231,506 $30,010 $6,176,830 $6,146,820 $695,551 $0 $695,551 $0 $37,019,560 $37,019,560 $6,000,000 $5,975,104 $11,975,104 $813,350 $1,817,390 $1,004,040 $250,000 $0 $250,000 $569,520 $10,160,280 $9,590,760 $2,500,000 $766,790 $3,266,790 $264,520 $7,314,220 $7,049,700 $781,200 $0 $781,200 $3,594,340 $16,676,470 $13,082,130 $489,010 $0 $489,010 $532,065 $0 $532,065 $170,000 $0 $170,000 $4,653,740 $11,715,050 $7,061,310 $1,000,000 $0 $1,000,000 $8,677,520 $13,115,210 $4,437,690 $763,810 $0 $763,810 $885,880 $2,454,570 $1,568,690 $625,000 $228,224 $853,224 $25,123,930 118,868,320 $93,Y44, $15,874,900 $22,845,018 approximate tax difference $ 967,774 $ 4,578,808 473% Dercent increase new vale„ $4M INCREMENT Owner Pays 100% Property taxes: $39,000� r $39,000 goes to all Taxing Jurisdictions Including $122,000 TIF Increment FROM NEW VALUE created all or part of which may be captured to assist in projects with public benefit... for a limited time $33,000 of the Increment (Protected Debt LE PLUS the original $39,000 goes to all Taxing Jurisdictions perty Tax Collections on a TIF project $230005000 $1,8005000 $196009000 tn $1,4005000 0 $152005000 0 $150005000 F, $8009000 4-1 $6005000 ° $4005000 a $2009000 M. TIF assistance period: 5 years of $133,000 each Total $665,000 TIF captured or rebated ■ Net Prop Tax on New Valuation, "After" Taxes "Before" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Year Property Tax, $25000, 000 $198009000 . • turir $196009000 llections on a TIF project $1,4005000 TIF pay back period: 4 years of $758,000 m $152005000 - Total 0 $2.27 M 4-1 $150005000 a� U $8009000 - F $6005000 3-4 $4005000 N 04 0.4 $2005000 a +/=3 r•1.r • • ram I TIF captured or rebated = Net Prop Tax on New Valuation, "After" • Taxes 'Before" 1 2 3 4 5 5 6 7 8 9 10 11 12 13 14 15 16 17 Year Property Tax Collectio $23000, 000�, $198009000 0 $1,6005000 O $154005000 a� U $132005000 F $1,000,000 4-1 $800,000 a� o $6005000 .'N $400,000 $200,000 TIF payback Period ends early due to higher values and capture from district vs project only ns on je Net Prop Tax on New Valuation, "Afte r" TIF captured or rebated M d' M CO L-4 W O O N M d' M CO L-4 W O O N M d4 0 0 0 0 0 0 0—— N N N N N O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N Year Property Tax $2030009000 $18,0005000 $1650005000 tn $1450005000 0 $125000,000 0 $1050005000 F, $8,0005000 4-1 $650005000 ° a $450005000 $290009000 On $390 Million Increment; city captures entire amount allowable for duration of 20 years on a TIF AREA Protected Debt Levy TIF captured TIF Area Total Tax Revenues 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year Project examples Park @-201 - Base value:5W520 2015 value: 109160,280 New value: $ 91590,7601 p MetaCommunic_a Number of Jo6s� Medical 0 Base value: A A J r _ ■ I .. .. I 1 lw , , �W 11 �1 �� -11111 t; j q-,--Towncrest :y! -...OWN 71 L Alpla of Iowa, Inc. Base value: $ 3,594,340 2015 value: $ 16,676,470 New value: $ 13,082,130 Number of Jobs: 200+ Payroll : $6 million+ (est - United Natural Foods Inc. Base value: 2015 value: New value: $ 4,653,740 $ 11,715,050 $ 7,061,310 Number of Jobs: 249 Payroll : $ 8 millionli S ...and others in Tax Increment Financing Johnson County Percent of Each Town's Capturgedmin 100% 90% 80 % 70% 60% 50% 40% 30% 20% 10% 0% ■ PORTION NOT ca luring TIF PORTION CAPTURING INCREMENT for TIF Jan. 1, 2014 valuation year, FY201512016 Total Town Value, TIF Incremment, TIF pe apita Iowa City Coralville North Liberty Solon Tiffin Lone Tree Swisher Shueyville Oxford $453 $34,�20 $�10,449 %$99045 $119598 TIF Valuation $9,538 Per Capita $9,784 $259656 $9,610 $0 $1 $2 $3 $4 Total Value of Community in Billions F NOT CAPTURING TIF INCREMENT CAPTURING TIF Jan. 1, 2014 valuation year, FY201512016 Oxford 0.8% s a portlon of 10.6% Swisher 0.9% Johnson County.. 0.7% Lone Tree 1.3% 0.7% Shueyville I 1.7% TIF size. Solon 2.2 % , 1.8% Tiffin 2.8% 53.5% Iowa City 3.3% 1 1 1 1 1 14.1% North Liberty 16.1% Coralville 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% • Town Value / County Value Town TIF / County TIF 70.7% I 70.0% 80.0% Johnson County's TIF Pie -.who has how much? Iowa City, 3.34% Solon, 2.18% Lone Tree, 1.35% Swisher, 0.92% Oxford, 0.80% Jan. 1, 2014 valuation year, FYI 5116 Trend in valuation captured for $80090009000 $70090009000 ,, $60090009000 $50090009000 a� $40090009000 c� $30090009000 v $200,000,000 F $100,000,000 $0 CO L� W O O N M d4 O O O O -1 -1 O O O O O O O O O N N N N N N'N N N Coralville Lone Tree Oxford Shueyville —Solon —Swisher North Liberty Tiffin Iowa City FY 2016 Taxes on TIF projects --in Iowa Cijib� $45.00 $333 3313 128 Increment value/ 1000 x TIF levy of $30.49 = $1,016,266 diverted $40.00 $35.00 $30.00 $25.00 thesetaxe r W hick are then used for project; $20.00 County, $6.90 $15.00 W� $10.00 Iowa City, 16.65 $5.00 County, $5.13 Mate nacxnu to schools, $5.40 $179,988 County, $5.13 $170,876 Iowa City, 12.72 Iowa City, 12.72 $424,059 $o.00 L_ Other, $1.39 Other, $1.12 Other, $1.12 $37-298 consolidated levy TIF levy of levy after state dollar amount totals $38.53/$1000 $30.49001/$1000 bacldill $1,016,266 FY 2016 . Taxes on.TIF projects in Coralville $40.00 $7003088,908 Increment value/ 1000 x TIF levy of $29.79 = $20,498,036 diverted $35.00 evelopers a thesetaxes $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Which are then used for projects Schools, County, $6.90 ww County, $5.13 Coralville, 13.53 Coralville, 11.40 1.50 consolidated levy TIF levy $35.79953/$1000 $30.49001/$1000 State backfill to schools, $5.40 J $3,794,949 County, $5.13 $3,602,840 Coralville, 11.40 $8,011,685 Other. $1.12 $786.426 of levy after state dollar amount totals backfill $20,498,036 FY 2016 Compare amount of TIF dollars diverted $25,000,000 T $209000,000 $1590009000 $1030003000 $590009000 $397949949 $1799988 $4,3025137 1259652 dj $396029840 $1705877 W $850115685 $4249059 Coralville $373299 Iowa City State backfill to schools Schools County City Other FY 2016 Highlights of recent private development projects in which the City has participated. Between January 1 and September 1, 2015, the City has leveraged 57 new affordable or workforce housing units in projects that have been granted City financial assistance. Sabin Townhomes Dubuque and Harrison Street, project approved 1/20/15 Project budget (private investment): $6.9 million City assistance: $976,277 max, TIF rebates over 13 years Housing unit details: 28 total units; 3 to be purchased for affordable rental to income qualified households Management: The Housing Fellowship to manage the 3 affordable rental units Riverside West 639 Riverside Drive, project approved 12/2/14 Project budget (private investment): $16.1 million City assistance: $1.8 million max, TIF rebates over 9 years Housing unit details: 96 total, all for rent, includes 12 workforce housing units Management: The Housing Fellowship to manage affordable rental units; developer manages balance The Chauncey College and Gilbert Street, project approved 6/8/15 Project budget (private investment): $49 million City assistance: $14.18 million TIF Housing unit details: City to purchase 5 - 1 BR units for $200,000 each for rent to income eligible tenants; 66 total units; some for sale, some rental Management: Iowa City Housing Authority to manage affordable rental units; balance by developer The Rise Court and Linn Street, project approved 7/27/15 Project budget (private investment): $74 million City assistance: $0, developer to pay City $5.5 million for land acquisition; Developer to pay $1,000,000 to affordable housing fund, in addition to providing 32 units of affordable rental housing Housing unit details: 320 total units; all rental; 32 meet Area Mediar Income guideline requirements Management: All housing units to be privately managed Economic development policies state including affordable housing options in private development projects seeking public assistance as one of many desired public benefits. Leveraging affordable housing in City -assisted development projects adds to the affordable housing stock in projects that would not otherwise include it and ensuring affordable housing stock throughout the community — notjustwhere it is affordable to build. Policies governing the definition of affordability and the number of required affordable units are currently under review by staff and will be considered by City Council in late 2015. UniverCity program The UniverCity program was established to preserve and enhance the unique character of neighborhoods adjacent to the downtown and University of Iowa. This initiative started to ensure that the campus and its surrounding neighborhoods remain vital, safe and attractive places to live and work, and to encourage investment in these neighborhoods. The City has purchased 56 primarily rental homes in University impacted neighborhoods. The City provides up to $50,000 in rehabilitation funds and sells the home to income eligible homeowners at the cost the City paid to acquire the home, plus "carrying" costs such as insurance, taxes, and loan interest. When possible, the City sells the home to homeowners below 80%of area median income. To date, the City has sold 49 homes with a pending purchase agreement for the 50th. The program will have invested in renovations to homes in the University impacted area (various sources of funding include: State I -Jobs, Iowa City Housing Authority, HOME, CDBG, and City general funds). The City anticipates purchasing 2-5 homes annually for this program. Single Family New Construction (SFNC) — source CDBG Disaster Recovery In the SNFC program, the City invested no funds in the homes that were built, but rather, administered the program for the Iowa Economic Development Authority (IEDA). Program administration funds were also provided by IEDA. To implement the program, the City would issue a Request for Proposals for builders to construct homes on selected lots with selected home designs. The City provided a 25-30%down payment to the income -eligible homeowner to purchase the property. The down payment amount varied per round. The City took applications, verified income, and matched homes to buyers based on their interest, using a lottery to determine who got first pick of the available homes. The contractors financed the construction of the homes, just as they would a spec home. Contractors were virtually assured buyers because of the City's down payment assistance. The homeowner had to find their own mortgage through approved banks which had to meet lending requirements. The loan had to be at least a 15-year fixed interest rate or better. The total purchase price for each of the homes could not exceed $180,000. If the homeowner sells within five years, they must pay a prorated amount back to IEDA. # of Homes Total Down Payment Assistance Purchase Price House Completed Round 1 40 $2,119,872 $7,066,240 11-09 to 5-10 Round 37 $1,497,400 $5,989,600 11-10 to 12-11 Round 3 31 $1,260,000 $5,040,000 7-11 to 9-14 Round 4 33 $1,222,500 $4,950,000 1-13 to 9-14 Total 141 $6,099,772 $23,045,840 Iowa Workforce Housing Tax Credit Program The City provided resolutions of support and committed at least $1,000 per assisted unit for two recent Iowa Workforce Housing Tax Credits applications. Housing developers are eligible to receive a refund of state sales, service or use taxes paid during construction and an investment tax credit up to a maximum of 10%of the investment directly related to the construction or rehabilitation of housing. There are no rental restrictions or income limitations on the program, but the average dwelling unit cost for the assisted units may not exceed $200,000 per unit for new construction. Van Patten LLC will construct a 12 story mixed use building at 9 S. Linn Street and will apply to the IEDA for up to 16 units of workforce housing. Iowa City Cohousing LLC will construct up to 15 units of workforce housing as part of their 33 owner -occupied housing development on the 900 block of Miller Ave. More Affordable Housing Opportunities At its September 1 Work Session, the City Council authorized staff to prepare an ordinance which would require that 10-15% affordable housing units be included in new projects in the Riverfront Crossings District, for projects of 10 units or more. This would be the State of Iowa's first Inclusionary Zoning ordinance, and would apply only in the Riverfront Crossings District. Staff will be drafting this ordinance for Planning and Zoning Commission and City Council review in the coming months. The City Council also authorized staff to prepare an ordinance which would include standards and criteria for 'cottage cluster' developments, in order to encourage groupings of smaller lots and smaller dwellings to be constructed as a part of new subdivisions. This option would add to the diversity of housing types in Iowa City, particularly for new development. 77Sept. 2015 To: City Council Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: January 28, 2016 Re: EDC Agenda item #5: City of Literature Funding request The Iowa City UNESCO City of Literature has submitted a request for continued funding of $60,000 for FY 17. The $60,000 includes the continuation of $10,000 restricted for the Iowa City Book Festival. Since its founding in 2008, the City has committed $50,000 per year to the organization whose mission it is to celebrate and support literature on a local, regional, national and international level, connecting readers and writers through the power of story. When the University of Iowa Libraries handed off the production and programming of the Iowa City Book Festival to the City of Literature the City continued a $10,000 commitment to that event, also. Today's request encompasses the $50,000 for City of Literature operations and $10,000 for the Iowa City Book Festival. Historically, the EDC has reviewed the past year's work and approved the coming fiscal year's request with a recommendation to City Council including a statement of intent to budget funding in the next two fiscal years (FY18 and 19). Last year, the Economic Development Committee approved the FY 16 funding and a recommendation to continue budgeting the same amount in FY 17 and 18. The City of Literature presents two unique events and several other significant programs every year. The Iowa City Book Festival attracted more than 4,000 people to downtown Iowa City for four days and dozens of events in October, 2015. The festival has gained notoriety and now authors and publishers seek out the festival because of its quality. The five year old One Book Two Book Children's Literature Festival is geared to families and building children's interest in reading and writing. The winter event is great for getting families out together to go to writing workshops for kids, book fairs and attending children's readings and writing awards. Last year's festival drew more than 2,500 people downtown. While these events are by far the largest programming pieces of the City of Literature work, there are numerous others with big impacts. This year, the City of Literature will be programming and presenting Music IC, a Chamber Music and Literature celebration in multiple locations in Iowa City in June. This, along with the Hawkeye Readers N-1 programs in schools, a high school essay contest with a year's tuition at the U of Iowa as a prize, a $10,000 Paul Engle prize and others, help build on the Iowa City UNESCO City of Literature designation and the reason that Iowa City is a literary destination. The attached report highlights the activities of the City of Literature's past year and gives an overview of the budget highlights. City of Literature Executive Director, John Kenyon will be attending your meeting to provide answers to any questions you may have about the organization. Funding for this request has come from the Community Development Assistance line in the Economic Development budget in the past. Staff recommends continued funding for the City of Literature for FY 2017 and continuing to reserve a "budget placeholder" for consideration in FY 2018 and 2019. Please feel free to contact me with any questions. rg Jan. 27, 2016 City Council Economic Development Committee c/o Wendy Ford City of Iowa City 410 E. Washington St. Iowa City, IA 52240 To the committee: On behalf of the Iowa City UNESCO City of Literature, I would like to thank the City of Iowa City for its continued support of our organization. The city's commitment to supporting a vibrant literary culture in our community is sincerely appreciated. I would like to request that you continue this funding at the same $60,000 level in FY17. This includes the annual partnership support of $50,000 and $10,000 that we will earmark as support for the Book Festival. Our other institutional partners have agreed to maintain their levels in FY17. We are then able to leverage this support to bring other funding to our organization and the community. The City of Literature works to advance its mission of celebrating and supporting literature on a local, regional, national, and international level, connecting readers and writers through the power of story. Through programs like the One Book Two Book Children's Literature Festival and the Iowa City Book Festival, we have encouraged families, businesses and community organizations to discover Iowa as a place that invites citizens — both locally and globally — to discover and share our many literary resources and opportunities. The goal of our UNESCO City of Literature is to support and create the highest quality literary programming and to engage youth and families in reading and writing. With the help of the financial support from partners like the city, we will continue to bring the finest literary events and offerings into the community. Sincerely, N=1, •o President Eileen Johnson Vice President Jim Conard Treasurer Janelle Rettig Secretary Linda Schreiber Past President Wendy Ford Board Alison Ames Galstad Susan Craig John Culshaw McKenzie De Roo Hugh Ferrer Jennie Garner Laurie Haman Jim Hayes Kelly Hayworth Ana Merino Andre Perry Elizabeth Schott Tim Terry James Throgmorton Amanda West Rachel Yoder Iowa City UNESCO City of Literature 123 S. Linn St. Iowa City, IA 5240 (319)887-6100 www. iowacityofliterature.o rg info@iowacityofliterature.org 80 City of Literature FY16 Recap Iowa City is the third UENSCO-designated City of Literature, earning the designation in 2008. Today we are one of 20 Cities of Literature the only city to hold the designation in North America and one of two in the Western Hemisphere and one of 116 member cities in UNESCO's Creative Cities Network. The Iowa City UNESCO City of Literature organization is a 501(c)3 nonprofit that manages the designation on behalf of the city. It is a collaborative organization that enjoys the support of other area municipalities and organizations, including the cities of Coralville and North Liberty, Johnson County, the Iowa City-Coralville Area Convention & Visitors Bureau, and the Iowa City Area Chamber of Commerce. Our mission: To celebrate and support literature on a local, regional, national, and international level, connecting readers and writers through the power of story. Our vision: To establish America's City of Literature as a place that invites citizens — both locally and globally — to discover and share our vibrant literary culture. Programming highlights Iowa Citv Book Festival: hi its sixth year, this October event drew more than 4,000 people to downtown Iowa City for four days of events. The festival featured more than 100 authors and presenters appearing at more than 50 events. Collaborations included those with the University of Iowa Center for Human Rights, the Geneva Ministries, the University of Iowa College of Public Health, the Iowa City Foreign Relations Council, The Englert Theatre, the Iowa Writers House, Riverside Theatre and others. Funding from the City ($10,000) was leveraged bring in grants, sponsorships and donations totaling an additional $30,000. One Book Two Book Children's Literature Festival: This children's literature event, now in its fifth year, will again feature a mix of events designed to celebrate writing for and by children. The three-day event (coming at the end of February) will find us recognizing nearly 100 writers in grades 1-8 for the excellence of their work. The festival also features visiting authors, writing workshops, a book fair and much more, and draws about 2,500 people to downtown Iowa City. Hawkeye Readers: This program is a partnership with the University of Iowa football team. We work with the team and three area schools with the greatest socio-economic disparities (Twain, Wood and Kirkwood) to place football players in classrooms for six weeks to help students work on their reading. The program reaches nearly 180 students each spring. Other Programs: The annual Paul Engle Prize (presented this year to Sara Paretsky), the Paul Engle Glory to the Senses high school essay contest for Iowa sophomores (prizes are scholarships, including a year of free tuition to Iowa), celebration of UNESCO's International Jazz Day, the Writers on the Fly video interview series with authors (www.writersonthefl,�org), and collaborations with other Cities of Literature, including Krakow, Dunedin, Edinburgh, and Norwich. 81 11:14 AM Iowa City UNESCO City of Literature 01/29/16 Statement of Financial Income and Expense Accrual Basis July 2014 through June 2015 Jul '14-Jun 15 Ordinary Income/Expense Income 400 - Direct Public Support 134,372.24 430 - Investments 10.80 440 - Other Types of Income 1,400.00 450. Program Income 86,534.39 Total Income 222,317.43 Expense 20. Personnel 118,161.66 50 - Contract Services 3,195.00 60 - Operations 3,229.43 70 - Insurance & Bonding 3,110.00 80. Facilities and Equipment 0.00 90. Business Expenses 2,571.99 120 - Organization Promotion 11,481.94 150 - Program Administration 82,919.74 Total Expense 224,669.76 Net Ordinary Income-2,352.33 Net Income-2,352.33 :➢a Page 1 11:03 AM Iowa City UNESCO City of Literature 01/29/16 Summary Balance Sheet Accrual Basis As of June 30, 2015 Jun 30, 15 ASSETS Current Assets Checking/Savings 147,930.51 Other Current Assets 691.12 Total Current Assets 148,621.63 TOTAL ASSETS 1485621.63 LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities 4,463.98 Total Current Liabilities 4,463.98 Total Liabilities 4,463.98 Equity 144,157.65 TOTAL LIABILITIES & EQUITY 1485621.63 83 Page 1 2015-16 Board of directors President Eileen Johnson Agate Publishing Vice President Jim Canard WestBank Alison Ames Galstad Coralville Public Library Susan Craig Iowa City Public Library John Culshaw University of Iowa Libraries Mackenzie DeRoo Iowa City Area Chamber of Commerce Hugh Ferrer University of Iowa International Writing Program Wendy Ford City of Iowa City Jennie Garner North Liberty Community Library Laurie Haman Iowa City-Coralville Area Convention & Visitors Bureau Treasurer Janelle Rettig Johnson County Supervisors Secretary Linda Schreiber Community volunteer Jim Hayes Hayes Lorenzen PC Kelly Hayworth City of Coralville Ana Merino University of Iowa MFA in Spanish Creative Writing Andre Perry Englert Theatre Elizabeth Schott Gazette Companies Tim Terry Terry, Lockridge & Dunn/World Trend Financial James Throgmorton City of Iowa City Amanda West SeedHere Studios Rachel Yoder Iowa Youth Writing Project is WHY IS IOWA CITY A CITY OF LITERATURE? Cultural Capital: The city has a network of university, grassroots and civic institutions that teach, celebrate, nurture and study great writing. Writer's Workshop: The highly acclaimed Iowa Writers' Workshop is the world's first Master of Fine Arts degree program in creative writing. Iowa City and the University of Iowa have played a substantial role in how literature, first in America and then around the world, has come to be written. The Writing University, Other important UI programs include the Translation Workshop; the Playwrights Workshop; the Nonfiction Writing Program; the Summer Writing Festival; Spanish Creative Writing MFA; and the Young Writers' Studio, a summer program for high-school students. Famous Authors: Since 1955 graduates and faculty of the University of Iowa have won more than 25 Pulitzer Prizes in literature. Authors who have lived, taught and studied here include Kurt Vonnegut Jr., Robert Penn Warren, Robert Lowell, Flannery O'Connor, Rita Dove, Jane Smiley, Robert Hass, John Irving, Marilynne Robinson, Mark Strand, and Raymond Carver. International Authors: More than 1,200 writers from more than 120 countries have been in residence at the UI's International Writing Program, including such luminaries as Bessie Head, John Banville and Nobel Prize -winners Mo Yan and Orhan Pamuk. Literary Events: Iowa City's literary institutions sponsor more than 250 literary events a year, Publishing: Iowa City is home to several literary presses, and a range of print and online journals. The highly respected Center for the Book preserves and extends the art of bookmaking. Iowa loves its libraries: The Iowa City Public Library is the busiest in the state, while the UI's research library is the 18th largest of its kind in the country; its holdings include special literary collections and hundreds of thousands of rare books. The Creative Cities Network, launched in 2004, seeks to develop international cooperation among cities that have identified creativity as a strategic factor for sustainable development, in the framework of partnerships including the public and private sectors, professional organizations, communities, civil society, and cultural n VNE United Nations Educational, Scientific and Cultural Organization it c ayol lolv1cm Member of the UNESCO Creative Cities Network since 2008 C TY RRR C LIRE www.cityofilteraturousa.org 85 THE IOWA CITY UNESCO CITY OF LITERATURE organization is an independent 501(c)3 that manages the UNESCO designation on behalf of the city. Our offices are housed in the Iowa City Public Library on the second floor administrative area. We receive support from the City of Iowa City, the University of Iowa, North Liberty, Coralville, Johnson County and other entities, as well as from the businesses and organizations that sponsor our events and the many individual contributors who help to sustain our programming. Our vision: To establish America's city of Literature as a place that invites citizens —both locally and globally —to discover and share our Vibrant literary culture. Our mission: To celebrate and support literature on a local, regional, national and international level, connecting readers and writers through the power of story. We meet these goals through a mixture of advocacy, networking and programming. *�,P i'iffL M� r f 0111 jwnda 61 VVA -Cl TY O"L Z " �_- You may also donate securely online at www.cityofliteratureusa.org/support nawKeye Keaaers, Urne Free uorary advocacy, Or , phone: 319.887.6100 NJ Community Book Talks, collaborations with other Cities of Literature, and much more. To: City Council Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: January 28, 2016 Re: Agenda item #6, Englert Theater annual report and request for funding The Englert staff and Board of Directors are requesting a recommendation to the City Council for $70,000 in the FY17 budget, and that you also recommend intent to continue funding the Englert at that level in FY18 and FY19. In December of 2008, the City Council Economic Development Committee approved a proposal from the Englert Theatre for a three year annual funding request of $50,000 for fiscal years 2009, 2010, and 2011 to be reviewed annually. Prior to or during budget season each year since, the Englert has presented an annual report and requested consideration for continued inclusion in the budget for three more years. For the last two years, the City's support of the Englert has included $50,000 for operations funding and an additional $20,000 for capital improvements. In 2014, the capital improvement was the construction of a lounge in the second floor gallery space which has allowed the Englert to help offset the loss of revenue from Hancher and the Division of Performing Arts as they transition to new facilities. In 2015, a concession service station was constructed on the main level. Both projects improve the experience for patrons and allow the Englert greater revenue potential. The addition of the gallery lounge and concession station also adds to the appeal for private rental functions. Since FY09, when the City began providing financial support - • The annual budget has gone from $843,000 with a $118,000 deficit (2008) to a $1.5 million budget. • Event attendance has grown from 30,297 in 2009 to 66,558+ in 2015. • Increased programming to include summer months and a growing diversity of events. • Repaired nagging roof leaks and the plaster ceilings under them. • Added a lounge space on second floor and new concessions service station on first floor • Celebrated the 100 year anniversary of the theater. • Increased Englert "Friends" donors from 200 in 2011 to 1,473 as of May, 2015. Recommendation Staff recommends supporting the Englert's request, and forwarding a recommendation to the full City Council to fund the request through the Economic Development Division budget in FY17 and retain a placeholder in the FY18 and 19 budgets. This is justified by the following factors: AA • Addresses Strategic Plan goal of Continued Development of the Downtown and Near Downtown Areas with the specific action of facilitating private investment through partnerships on strategic properties. • The theater has nearly doubled the size of its annual operations budget since the City started financial assistance in 2009. It strives to offer more diverse programming every year. • The Englert continues to provide entertainment alternatives for the entire community, including those under 21. • A strong theater generates downtown visitors who frequent restaurants, shops and other entertainment venues. • The Englert attracts visitors and residents to downtown. Of credit card ticket purchasers, 60% are from Johnson County, 30% are from inside Iowa but outside of Johnson County and 10% are from out of state. It is estimated that of the 66,500 theater goers this past year, the number from outside the county topped 26,000 people. Please be prepared to discuss the Englert's request for a renewed funding commitment. If you have any questions, feel free to contact me. ei:3 CALL 319.61MM53 CUCK r xiggM.utg YIW 221 E WeSNingwB 51._ Iowa Cur, 1!152bw IONNECT M#kW ! NlLtka k r Yy5pace i Twiner January 29 h, 2016 To the Economic Development Committee: Thank you for your continued support of the Englert Theatre. Through our diverse, wide -reaching programming and outreach efforts, the theater continues to excel as a cultural landmark in Downtown Iowa City. This Annual Report outlines our organization's progress through FY2015. The report includes our current financial statement, 3-year operational targets, ticket sales data, donor relations data, and future strategic plans for the theater. The Englert Theatre is currently experiencing a transition period as we adjust to shifting economic conditions. We experienced sharp declines in rental revenue from the University of Iowa's performing arts departments as those entities move to their own venues. As a result of these changes and other factors, FY2014 — 15 registered operational losses. Acknowledging our new revenue landscape, The Englert staff and board designed a 3-Year Plan that charts a course towards renewed sustainability as experienced in FY2011 — 13. Our sustainability rests on continued strong programming and fundraising initiatives as well as an investment in creating new rental opportunities. Additionally, we have made difficult adjustments to our ongoing expenses that will help ensure sustainability. As part of our programming effort we have become the producing agent of the local Mission Creek Festival and a new festival, Witching Hour, which launched in November 2015. Special events such as these will be key contributors to the operation and help us meet the mission and vision of our organization in serving as a key community builder through the arts. As we look to the future of our partnership with the City of Iowa City we request approval of continued financial support — $50,000 contribution towards operations and $20,000 reimbursement for continued capital improvements —for fiscal year 2017 and the following two years (2018 - 2019). We greatly appreciate the city's approval in these past two years of $20,000 reimbursement for capital improvements at the theater. This support contributed to the Phase I renovation of our Douglas and Linda Paul Gallery in 2014 and a currently -in -the -works improvement to our orchestra -level concessions area in 2015. In 2016, we would allocate these capital funds towards further development of our gallery space. All of these capital improvements expand our opportunities to generate new revenue as well as make our building a place where all members of our community feel warm and welcome. We encourage the City to consider its support of the Englert as an investment in Iowa City's overall cultural and economic vitality. The Englert's ongoing programming brings vibrancy to downtown Iowa City and encourages considerable consumer spending with over 60,000 attendees each year. Furthermore, we are working to bring the various parts of our community together to share in transformative artistic experiences that will bridge our differences towards a positive future. We are very appreciative of the City of Iowa City's support and attention to Englert-related issues. Sincerely, Andre Perry Executive Director The Englert Theatre Table of Contents Current Financial Report IL Debt/Cash Flow Projection III. Three Year Financial Report IV. Attendance Report & Ticket Purchase Demographics V. Englert Theatre in the Greater Marketplace VI. Donor Relations VIL Future Strategic Plans 41 ((((((Financial Section to Insert into Economic Development Committee Report)))) I. Current Financial Report Below, please find the Englert Civic Theatre, Inc. profit and loss statement ending December, 2015 reflecting twelve months of financial performance. December YTD financial performance was slightly unfavorable to budget by $1,183; however, favorable to prior year by $30,672. December YTD financial performance reflects a reduction in rentals from prior year with the 2014 completion of the 5 year FEMA financed Uofl Division of Performing Arts contract. Improved programming margins added by a strong Mission Creek contribution in its second year with the Englert have more than offset the rental reduction. PROFIT/LOSS STATEMENT Income Dec Actual Dec Budgt Fundraising/Grants $52,158 $59,500 EnglertEvents 97,729 106,453 Artist&Audience Outreach 0 0 Playbill Advertisting 280 0 Rental Events 3,098 5,680 Mission Creek 0 0 Witching Hour 0 0 Other 3,164 5,474 Total In co me $156,430 $177,107 Expenses Last Dec Dec YTDActual Dec YTDBudget Last Dec YTD $49,851 $242,446 $231,000 $234,749 119,862 773,791 754,171 737,081 0 36,044 39,700 20,686 0 39,498 32,600 56,578 559 150,318 148,184 163,583 0 221,300 198,000 206,732 0 38,735 0 0 2,458 70,314 73,959 45,458 $172,730 $1,572,445 $1,477,614 $1,464,867 Administration $3,498 $5,221 $2,788 Marketing 3,552 3,583 7,990 Building 7,439 6,575 3,937 Fundraising Expenses 328 200 8,752 Personnel 45,989 44,970 46,138 Englert Events 55,349 83,947 74,432 Artist&Audience Outreach 0 0 0 Playbill Advertisting -30 3,000 9,311 Rental Events 2 249 -108 Mission Creek 0 0 -190 Witching Hour 0 0 0 Non-Operating(Interest) 1,498 1,333 1,362 Total Expenses $117,626 $149,078 $154,412 Operating Profit/(Loss) $38,804 $28,029 $18,318 2011 Capital Campaign $10,450 $14,000 $15,200 Profit/(Loss) $49,254 $42,029 $33,518 $57,499 $55,072 $58,494 43,614 42,996 54,207 70,261 87,865 77,501 27,331 18,000 33,097 552,781 513,435 509,029 567,971 570,395 588,865 49,734 52,700 48,499 21,589 25,000 19,013 3,354 7,011 5,872 204,649 176,800 179,195 42,510 0 0 16,444 16,000 16,810 $1,657,738 $1,565,274 $1,590,582 ($85,293) ($87,660) ($125,715) $16,450 $20,000 $26,200 ($68,843) ($67,660) ($99,515) SI II. 2015 Debt/Cash Flow Projection Subsequent to the July, 2011, Cityscape equity buy-out and legal entity consolidation to a single non-profit organization January, 2012, the Englert has maintained a positive cash flow with manageable debt position until 2015. The below chart reflects 2015 Englert Dec YTD debt and cash positions. 450,000 400,000 350,000 300,000 250,000 200,000 $331,2 W twenty year mortgage, $22,000 five year note, ending Jul, 2016 $30,000 used of $100, 000 available operating line 150,000 100,000 50,000 Jan Act Feb Act Mar Act Apr Act MayAct JunAct Jul Act AugAct Sep Act OctAct Nov Act DecAct iiiiiiiiiCa,b tDebt sW III. Three Year Financial Report with 2015 Budget 2013 recognized the highest ever level of Operational Profit of $64,379. 2014 recognized a challenging financial year with losses covered by positive cash generation from the previous three years. 2014 Programming margins were reduced, Uofl DPA FEMA financed rental contract was concluded, and personnel costs were increased to support increased programming and Mission Creek. 2015 anticipated continued revenue growth with investment in personnel to support Mission Creek and Witching Hour festivals. 2016 will focus on closing the cash deficit gap with improved programming margins including pricing adjustments and increased development income. Further, cost containment strategies to reduce labor will be initiated. Income Total Development Income Other Income Rentals Englert Series Mission Creek Total Income Expenses Administration Building Fundraising Non -Operating Personnel Rentals Englert Series Mission Creek Total Expenses Operational Profit/(Loss) 2011 Capital Campaign Profit/(Loss) 2013 ACTUAL 2014 ACTUAL 2015 ACTUAL 2016 Budget $ 249,319 $ 234,750 $ 242,446 $ 277,650 42,332 45,459 70,314 112,573 174,033 163,583 150,318 128,998 920,484 814,343 888,067 827,455 206,732 221,300 227,500 $ 1,386,168 1 $ 1,464,8671 $ 1,572,445 $ 1,574,176 $ 109,312 $ 112,703 $ 122,702 $ 123,116 86,895 77,502 70,261 87,800 19,737 33,097 27,331 26,000 22,114 16,810 16,444 18,000 413,277 508,999 552,781 473,336 7,643 5,872 3,354 3,308 662,812 656,404 660,216 580,681 - 179,195 204,649 197,600 $ 1,321,790 $ 1,590,582 $ 1,657,738 $ 1,509,841 $ 64,379 $ (125,715) $ (85,293)1 $ 64,335 $ 32,100 $ 26,200 $ 16,450 $ - $ 96,479 $ (99,515) $ (68,843) $ 64,335 461 IV. Three Year Projection Below is atable reflecting athree year forward projection the theater has reviewed to close the financial operating loss gap to financial stability. Improved programming, development income, mission creek and witching hour festivals with personnel cost containment are primary drivers. Income Total Development Income Other Income Rentals Englert Series Mission Creek Total Income Expenses Administration Building Fundraising Non -Operating Personnel Re nta Is Englert Series Mission Creek Total Expenses Operational Profit/(Loss) 2011 Capital Campaign Profit/(Loss) 2016 Budget I 2017 Fcst I 2018 Fcstq $ 277,650 I $ 279,6501 $ 281,650 112, 573 128,073 143,573 128,998 128,998 128,998 827,455 824,455 826,455 227,500 230,500 233,500 $ 1,574,176 1 $1,591,6761 $1,614,176 $ 123,116 1 $ 125,6441 $ 128,447 87,800 89,800 91,800 26,000 28,000 30,000 18,000 17,000 16,000 473,336 492,943 510,711 3,308 3,308 3,308 580,681 570,681 570,681 197,600 197,600 197,600 $ 1,509,841 1 $1,524,976 1 $1,548,547 $ 64,335 1 $ 66,7001 $ 65,629 $ 64,335 1 $ 66,7001 $ 65,629 PI V. Attendance Report —Current Statistics and Recent History 'These numbers come from our ticket sales as well as our "drop count' at every event. We use the drop count numbers when the event is free. We use ticket sales numbers for all events sold through the Englert box office. 2015 Attendance Total: 66,558 (-77,000 including festival programming) Englert Presents — Tickets Sold: 39,404 Englert Presents — Free/Non-Ticketed Events: 5,713 Rental Attendees (both ticketed and free events): 22,441 2014 Attendance Total: 63,189 Englert Presents — Tickets Sold: 26,481 Englert Presents — Free/Non-Ticketed Events: 3,103 Rental Events: 33,605 2013 Attendance Total: 57,641 Englert Presents — Tickets Sold: 30,756 Englert Presents — Free/Non-Ticketed Events: 4432 Rental Events: 22,453 2012 Attendance Total: 52,781 Englert Presents —Tickets Sold: 26,322 Englert Presents — Free/Non-Ticketed Events: 3,652 Rental Events: 22,807 2011 Attendance Total: 51,617 Englert Presents — Tickets Sold: 20,792 Englert Presents — Free/Non-Ticketed Events: 3,748 Rental Events: 27,077 2010 Attendance Total: 45,913 Englert Presents — Tickets Sold: 17,622 Englert Presents — Free/Non-Ticketed Events: 1,478 Rental Events: 26,813 2009 Attendance Total: 30,297 Tickets Sold: 9,877 Non -ticketed attendees (lectures and other rentals): 20,420 41 Ticket Purchase Demographics 2013-2015: These figures are gathered from online credit card sales and phone order sales. They only tell part of the story of customers who have come to the Englert. Other methods of purchasing tickets are not accounted for in this review. These figures show a strong base of support for Englert events from the immediate community as well as steadily increasing support from other areas. Enelert Theatre Customers 2015 (through Mav 2015) Total Johnson County: 60% -Iowa City: 48% -Coralville: 6% -North Liberty: 4% -Other Johnson County: 2% Total Non -Johnson County: 30% -Cedar Rapids/Marion: 8% -Other Iowa: 22% Out -of -State: 10% Englert Theatre Customers 2014 Total Johnson County: 63% -Iowa City: 49% -Coralville: 8% -North Liberty: 4% -Other Johnson County: 2% Total Non -Johnson County: 30% -Cedar Rapids/Marion: 9% -Other Iowa: 21% Out -of -State: 7% Englert Theatre Customers 2013 Total Johnson County: 66% -Iowa City: 51% -Coralville: 8% -North Liberty: 4% -Other Johnson County: 3% Total Non -Johnson County: 27% -Cedar Rapids/Marion: 8% -Other Iowa: 19% Out -of -State: 7% ;,i VL Donor Relations 2011 Capital Campaign Sponsors: ACT, Benchmark, Inc., Hills Bank and Trust Company, Integrated DNA Technologies, MidWestOne Bank, Rockwell Collins, University of Iowa Community Credit Union, West Music Annual Partners & Sponsors 126 Arts Midwest Applicance Barn Arts Mission, Inc. Basta Pizzeria Ristorante Best Case Wines Blick Art Materials The Bywater Family Fund Cedar Ridge Vineyards City of Iowa City Chair Galleries Downtown Clinton Street Social Club Country Stonemasons Devotay Deluxe Bakery Fresh Food Concepts Gannet Foundation Gay & Chia Hands Jewelers HyVee Iowa City Coralville Area Convention and Visitors Bureau Iowa City Downtown District Iowa Department of Cultural Affairs Iowa Public Radio MC Ginsberg McDonough Structures Mediacom Moen Group Motley Cow Cafe New Pioneer Co-op Nolte Academy Oasis Pediatric Associates of Iowa City and Coralville Press -Citizen Media Share/Sherton/Hotel Vetro Takanami Total Tree Care Iowa City Trumpet Blossom Cafe University of Iowa Community Credit Union Washington Country Riverboat Foundation Yotopia Frozen Yogurt Zephyr Friends of the Englert (Individual Donors): 1473 households as of May 31, 2015 (May 2014: 1308; May 2013: 855; May 2012: 485; May 2011: 200) M VIL Englert Theatre in the Greater Marketplace Englert programming and development in recent years has positioned the theater on relatively equal ground to other theaters, performing art spaces, and concert venues in the Midwest. hi some instances, the Englert's event schedule exceeds the quality of events of other theaters in competitor markets. It is important to note that the theaters, performing arts spaces, and other venues we compete with often have larger capacities (1000+) or exist in cities with populations larger than Iowa City (70,000 pop.) Despite these possible limitations the Englert has the potential to further rival the programming found in other markets, thus making Iowa City a more desirable location for current residents, potential new residents, and other Iowans seeking a venue for cultural events. Competitor Markets for Arts Programming in the Midwest Citv Population Chicago, IL 2,800,000 (Sample venues: The Metro, Goodman Theatre, Vic Theatre) Minneapolis / St. Paul (Twin Cities), MN 2,800,000 (Sample venues: The Orpheum, First Avenue / 7a St. Entry) Omaha, NE 400,000 (Sample venues: Orpheum Theatre, the Slowdown) Champaign -Urbana, IL 200,000 (Sample venues: Krannert Center, Canopy Club) Des Moines, IA 200,000 (Sample venues: Hoyt -Sherman, People's) Madison, WI 200,000 (Sample venues: Majestic Theatre, Overture Center) Sioux Falls, SD 150,000 (Sample venues: Washington Pavillion) Lawrence, KS 100,000 (Sample venues: Granada, Bottleneck, Lawrence Arts) Columbia, MO 100,000 (Sample venues: Blue Note, Missouri Theatre) 1:7 VIIL Future Strategic Plans Operational Review The Englert is in a transitional phase. We are closely assessing our capacity for future growth and sustainable operations. This involves staff and board review of our key revenue sources: fundraising, programming, and rentals. Over the course of 2015 — 17, we will continue to develop a plan for an Englert operation that allows the organization to meet the promise of its mission and vision as well as remain financially viable. From staff level to the board, we are engaging this challenge very seriously and we are aware that the systems we set in place now will have an important effect on the health of our organization and the cultural landscape of downtown Iowa City for years to come. Iowa City's arts ecosystem is experiencing acute change driven by the reintroduction of two University of Iowa venues — Hancher, School of Music — and the eventual expansion of FilmScene and other initiatives. Furthermore, ongoing development in neighboring communities like Coralville, Cedar Rapids, and North Liberty will increase the field of options for consumer spending and community engagement. The Englert is continually assessing and preparing for this changing landscape through both the clarification and diversification of our brand. hi both our short- and long-term plans, we predict that there will be a need for non -University associated, downtown Iowa City arts initiatives to unite in an effort to enliven fundraising opportunities, enrich cultural offerings, and bolster community awareness of and access to our various programs. Capital Campaign Looking beyond our year-to-year operation, we are also developing plans for a capital campaign which will address a series of exciting improvements for our space — installing next generation sound + light equipment to enhance all performance experiences, potentially developing our rooftop space for public and private use, redesigning various aspects of our exterior fagade and interior space to strengthen both the consumer and visiting artist experience — as well as meet structural needs that have not been addressed since the early 2000s renovation. 4*1 Date: January 27, 2016 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Agenda Item #7: Consider a request for Funding from Mission Creek Iowa City's Mission Creek Festival is requesting $20,000 in funding assistance from Community Development Assistance funds for FY17 and a request to budget the same amount in FY18. This is a 60% increase over last year's $12,500 level, due entirely to the planned expansion of the festival. The 2016 Festival, April 5-10, will be the 11th annual Mission Creek Festival and will continue a tradition of featuring fine music, literary, film and culinary culture in more than 20 venues downtown Iowa City, including the Blue Moose Taphouse, the Englert Theater, FilmScene, Gabe's, Prairie Lights and this year, Hancher and the School of Music. Recent additions to the festival include a series of events for youth and a mini -tech + innovation conference. It is designed to appeal to audiences of all ages and cultural backgrounds. The event provides a venue for Iowa artists to be exposed to national attention and for nationally recognized artists to gain an Iowa audience. The resulting coverage increases Iowa's presence in the national scene and Iowa City as the cultural center of the upper Midwest. In 2015, the festival again hosted approximately 10,300 people, featured 295 musicians, 90 writers and 6 chefs. Of those, 130 musicians, 57 writers and all of the chefs were Iowa -based. There is broad support from businesses and our non-profit community, local radio stations, media and several facets of the University of Iowa. Notably, local restaurants are very strong contributors, an indicator that Mission Creek is good for their bottom lines. With such broad community support, a growing program and increasing notoriety the festival's influence reaches far beyond the Creative Corridor. Staff is recommending support of this request. Mission Creek Festival helps to strengthen our core urban area and offers increasingly diverse programming while building upon the Creative Corridor brand. Please feel free to contact me with questions. Andre Perry, Mission Creek festival director, will also be in attendance at your meeting. 100 MISSION ICREEESTIVAL January 29, 2016 To the Economic Development Committee I am writing to submit a report on the continued progress and growth of Mission Creek Festival in the past year as well as to request funding in the amount of $20,000 for Mission Creek Festival 2017 as well as the 2018 festival. Our festival continues to grow in positive ways from year to year and the 2017 — 2018 festivals will be milestone years as we grow the scope and capacity of our programming and attendance with the additions of Hancher and the School of Music as core performance venues. We anticipate our operational budget will grow by approximately 60% from 2016 to 2017 and we plan to increase annual festival attendance to 15,000/year by 2018. Our increased request of funding directly reflects our anticipated growth in FY2017 — 18. With a focus on music, literature, film, art, youth outreach, and food culture, Mission Creek Festival provides the greatest opportunities for Iowa -based artists to perform their work as well as for Iowa -based patrons to see nationally and internationally -regarded artists. Our literary arm is the longest -running literary festival in Iowa City. Our music programming consistently brings notable acts to Iowa City for the first time, thus increasing our stature amongst prominent artist booking agents. This past year's festival featured legendary filmmaker Jim Jarmusch, acclaimed author Kiese Laymon, NPR radio host Jad Abumrad, and indie-rock band Father John Misty. Mission Creek Festival continues to garner positive and strong regional coverage as well as national coverage from publications in the music and literary worlds, thus increasing the spotlight on Iowa City as a cultural center. We believe Mission Creek does important work in putting Iowa City on the map as a place to be, a place to live. We continue to expand our programmatic offerings and have increasingly included comedy, food culture, visual arts, film, tech and innovation, local crafts, and youth outreach as part of our festival experience. Our partnership with the Englert Theatre as our producing agent has been successful and will us expand in these important upcoming years. We are extremely thankful for the ongoing support from the City of Iowa City. This document includes some of the basic information about the organization including past year data, future budgets, and staff bios. We encourage you to engage us with feedback and questions about the future of the festival. Thank You, Andre Perry Mission Creek Festival, Director 101 Organizational Information Organization: Mission Creek Festival Event: Mission Creek Festival / http://missionfreak.com Dates: Every April / Attendance:—10,000/year Contact: Andre Perry / 221 E. Washington Street, Iowa City, IA 52240 319-688-2653 x108 / andre@englert.org About Founded in 2005, Mission Creek Festival is an annual week-long festival that takes place every spring in Downtown Iowa City. The festival is dedicated to inspiring and building the Iowa City area's artistic communities through the exposure of local, regional, national, and international artists. The programming focuses on literary readings, music performances, public lectures, film screenings, local food culture, educational outreach, and a tech + innovation mini -conference. The festival serves audiences of all ages and cultural backgrounds. The festival also utilizes the existing cultural geography of our town — bookstores, clothing stores, cafes, and performance spaces —turning the downtown area into an easily - navigated nexus of music, art, and transformative experiences. In 2017 -18, the festival will experience significant growth as we work with Hancher to add it as a premier performance venue for the festival. The primary objective of the Mission Creek Festival is to enhance the quality of life in the community through diverse arts programming that caters to young and creative individuals, traditional patrons of the arts, and general members of the community. It is our belief that students, professionals, new transplants, young families, and lifelong residents can work together to infuse a community with vitality. In our continuing dedication to new and progressive art forms, as well as broadening the scope of the festival to include initiatives like local food culture and educational outreach, we present festival artists and attendees with programming experiences uncommon in the Southeastern Iowa cultural landscape. Consequently, our festival increasingly draws comparisons to nationally recognized events like South By Southwest in Austin, Texas and Litquake Festival in San Francisco, California. This festival has literally grown from "the ground up," with the support of local and regional businesses that continues to sustain us. Many of our sponsors have noted how our event not only deepens the cultural fabric of the Cedar Rapids/Iowa City "Corridor," but also drives residents and revenue toward locally -owned shops and restaurants. We work closely with our local business partners and sponsors to assess needs, measure outcomes, and arrange in -kind and promotional donations that highlight the area's resources and services. 2015 Festival — Quick Facts Attendance: 10,300 (3-year average: 10,000) Number of featured musicians: 295 / Number of featured writers: 90 Number of Iowa -based musicians: 130 / Number of Iowa -based writers: 57 Number of Iowa -based chefs: 6 Venues in 2015 (23 venues): The Englert Theatre, Blue Moose, The Mill, Gabe's, Prairie Lights, FilmScene, RSVP, Clinton Street Social Club, Revival, Yacht Club, Deadwood, Nodo, Beadology, Motley Cow, Dublin Underground, White Rabbit, Hotel Vetro, Steven Vail Gallery, Trumpet Blossom Cafe, Pullman Diner, The Dream Center, Devotay, Leaf Kitchen Sponsors in 2015 (22 sponsors / 79.5K in sponsorship funds): University of Iowa Community Credit Union —TITLE SPONSOR, City of Iowa City, West Music, Iowa City Sheraton, Iowa City/Coralville Convention and Visitors Bureau, Iowa City Area Development Group, New Belgium Brewing, Jim Beam Global, Little Village, The Iowa Review, Meta Communications, Digital Artefacts, Motley Cow, Devotay, Deluxe Bakery, Iowa Public Radio, Iowa City Downtown District, Tuesday Agency, and University of Iowa: Hancher, SCOPE, KRUI, Lecture Committee KIN Selected Past Festival PerformersNVriters/Lecturers (2006 — 2014): Jad Abu mrad, Father John Misty, Cameron Esposito, Kiese Laymon, Real Estate, Philip Glass, Laurie Anderson, Rachel Kushner, Jason Isbell, The Head and the Heart, Hannibal Buress, Grizzly Bear, David Cross, Tig Notaro, Bon Iver, Beach House, the Magnetic Fields, Guided By Voices, Thurston Moore & Kim Gordon of Sonic Youth, John Waters, Patty Griffin, Greg Brown, Pieta Brown, Bowerbirds, GZA/Genius, Public Enemy, Divine Fits, Thao & The Get Dow Stay Down, the Mountain Goats, Dan Deacon, Fruit Bats, Zola Jesus, No Age, the Antlers, Camera Obscura, Tilly and the Wall, Sharon Van Etten, Colson Whitehead, Aleksander Hemon, Charles D'Ambrosio, Edmund White, Eula Biss, Tim Hecker, Rhys Chatham, The Meat Puppets, William Elliott Whitmore, D.A. Powell, Booker T., Kiki Petrosino, and hundreds more... Future Goals: -Expansion of festival by providing high -quality programming for niche interest groups — tech, literature music — as well as hybrid programming to create connections between these different groups. Looking towards the 2017 expansion with the addition of Hancher as a new venue. 103 II. Mission Creek Festival Budget Overview FY2016 Revenue 2017 (budget] 2016 (budget) 2015 (actual) Festival pass sales: 27,500 17,500 17,340 Individual tickets sales: 220,000 100,000 91,928 Sponsorships - cash: 90,000 75,000 79,500 Annual Giving 15,000 15,000 12,315 NEA Grant 10,000 Concessions: 10,000 10,000 16,636 Total revenue: 362,500 227,500 217,719 Expenses Staffing: 42,000 30,000 27,350 Programming & Outreach: 249,500 149,500 154,094 Marketing: 5,500 5,000 4,600 Administration, Production: 14,500 8,500 9,892 Concessions: 3,000 3,000 4,990 Total costs: 314,500 196,000 200,926 Net/(Balance): 48,000 31,500 16,793 104 III. Staff Bios Andre Perry, Festival Director Andre Perry lives in Iowa City where he serves as the Executive Director of the Englert Theatre, a 101- year-old performing arts space in the heart of downtown. He is also the co-founder and director of the Mission Creek Festival, a weeklong exploration of music, literature, and food culture that inhabits established venues as well as non-traditional performance spaces in Iowa City. Perry received his MFA from the Nonfiction Writing Program at the University of Iowa (2008) and his BA in English from Princeton University (2000). He continues to write and publish in the field. Joseph Tiefenthaler, Associate Programming Director Joseph M. Tiefenthaler is a native Iowan and serves as the Executive Director of FilmScene, an independent non-profit movie theater in downtown Iowa City. He received his BA in English from the University of Iowa in 2005 and worked at the University of Iowa's International Writing Program for seven years where he coordinated the annual Fall Residency Program — effectively serving as the cultural ambassador from Iowa City for roughly 30 writers from around the world. He is also the Editor -at -Large for acclaimed literary journal, Wag's Revue. Christopher Wiersema, Associate Programming Director Leaving a position at Chicago's Newcity magazine, where he covered arts and culture, Chris relocated to Iowa City in 2001 and found a fertile arts community that offered encouragement, collaboration, and enthusiasm. Noticing a deficit in avant-garde music programming, Chris began a music promotion company, Outsound Productions, with little more than his email, a clutch of extension cords, the promise of a home -cooked meal, and tacit permission to use a closed downtown business as a venue. Since then his productions have occupied traditional and non-traditional venues alike. The scope of his musical focus now includes myriad genres and he has hosted artists, composers, and musicians from around the world. Chris previously served as manager of local music venue, the Picador. He has studied at Columbia College and the School of the Art Institute of Chicago. Wil