HomeMy WebLinkAbout1988-11-01 ResolutionRESOLUTION NO. 88-218
RESOLUTION ACCEPTING THE
SANITARY SEWER AND PAVING IMPROVEMENTS FOR CAMBRIA COURT, PART 2
WHEREAS, the Engineering Division has certified that the following
improvements have been completed in accordance with the plans and specifications
of the City of Iowa City:
Sanitary sewer improvements that include 146 feet of 8 inch diameter
VCP, and one manhole for Cambria Court, Part 2 as constructed by Dick
Cole Construction Co. of Iowa City, Iowa.
AND WHEREAS, maintenance bonds have been filed in the City Clerk's office,
NOW THEREFORE BE IT RESOLVED by the City Council of Iowa City, Iowa, that
said improvements be accepted by the City of Iowa City.
It was moved by Ambrisco and seconded by Horowitz
that the resolution as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x AMBRISCO
BALMER
x COURTNEY
x HOROWITZ
x LARSON
j
x McDONALD
Passed and approved this 1st day of November, 1988.
MAY
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ATTEST: //lnun.�.>�`Cq✓i/ � �!%� 7�%W
CITY CLERK Legal Department
CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-500D
ENGINEER'S REPORT
October 26, 1988
Honorable Mayor and City Council
Iowa City, Iowa
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the improvements listed
below has been completed in substantial accordance with the plans
and specifications of the Engineering Division of the City of
Iowa City. The required maintenance bond is on file in the City
Clerk's office.
Sanitary sewer improvements that include 146 feet of 8
inch diameter VCP, and one manhole for Cambria Court,
Part 2 as constructed by Dick Cole Construction Co. of
Iowa City, Iowa.
I hereby recommend that the above -referenced improvements be
accepted by the City of Iowa City.
R 1 ectfull syL�itted,
C Z7�2n6//%1Lr��
Frank K. Farmer, P.E.
City Engineer
39LIP T
City of Iowa City
MEMORANDUM
Date: October 18, 1988
To: The Honorable Mayor and City Council
From: James 8rachtel, Traffic Engineer
Re: Parking Prohibition on Olive Court
As directed by Section 23-16 of the Municipal Code of Iowa City, this is
to advise you of the following action:
ACTION:
Pursuant to Section 23-234 of the Municipal Code of Iowa City, the City
Traffic Engineer will direct the installation of NO PARKING CORNER TO HERE
on the west side of Olive Court from its intersection with Myrtle Avenue
to a point 30 feet south of Myrtle Avenue. The prohibition will be on the
west side of Olive Court. This action will take place on or shortly after !
November 2, 1988.
COMMENT:
The neighborhood of Olive Court incurs transient parkers due to the
addition of new buildings in the University of Iowa's west campus. The
prohibition noted above will improve the sight distance for vehicles
attempting to enter Myrtle Avenue from Olive Court at all hours of the
day. i
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OCT 18 1988
MARIAN K. KARR
CITY CLERK (3)
City of Iowa City
MEMORANDUM
Date: October 26, 1988
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To: The Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer
Re: Loading Zone on Church Street West of Dodge Street
As directed by Section 23-16 of the Municipal Code of Iowa City, this is
to advise you of the following action:
ACTION:
Pursuant to Section 23-288 of the Municipal Code of Iowa City, the City
Traffic Engineer will direct the installation of a passenger loading zone
on the south side of Church Street. The passenger loading zone will be
located between the east and west driveways to Horace Mann School. All
other parking prohibitions adjacent to the loading zone will remain as
i they are currently posted. This action will take place on or shortly
after November 9, 1988.
COMMENT:
This action is being taken to provide a place for the discharge of
elementary school age children adjacent to Horace Mann School.
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OCT 2 61988
MARIAN K. KARR
CITY CLERK (3)
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City of Iowa City
MEMORANDUM
Date: October 26, 1988
To: The Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer
Re: Left Turn Designation at Boyrum Street/U.S. Highway 6
As directed by Section 23-16 of the Municipal Code of Iowa City, this is
to advise you of the following action:
ACTION:
Pursuant to Section 23-198 of the Municipal Code of Iowa City, the City
Traffic Engineer will direct the installation of signs at the intersection
of Boyrum Street/U.S. Highway 6 so that vehicles entering the intersection
from the left hand lane of both the north and southbound legs of Boyrum
Street will be required to turn left. The right hand lane for both north
and southbound will be reserved for straight through and right turn
movement. This action will take place on or shortly after November 9,
1988.
COMMENT:
This action is being taken to organize the flow of north and southbound
traffic at the intersection.
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ACCT 2 61988
MARIAN K. KARR
CITY CLERK (3)
1596
RESOLUTION NO.
RESOLUTION AMENDING THE COMPREHENSIVE PLAN UPDATE BY CHANGING
THE LAND USE CLASSIFICATION OF PROPERTY LOCATED AT 528 & 530
IOWA AVENUE AND 15 N. JOHNSON STREET FROM RESIDENTIAL AT A
DENSITY OF 25+ DWELLING UNITS PER ACRE TO MIXED LAND USE.
WHEREAS, the City's Comprehensive Plan is a statement of goals and
policies for the community; and
WHEREAS, in order to be an effective guide for a vital community, the Plan
is flexible and amendable within the context of set goals and objectives
described within the Plan; and
WHEREAS, the subject properties are located in a transitional area at the
eastern fringe of the downtown, such that, the area west of Johnson Street
has been in a gradual state of transition from older, established single-
family residential neighborhoods to a mixed land use pattern; and
WHEREAS, the Comprehensive Plan indicates that areas designated for Mixed
Land Use are viewed as transitional areas between high density residential
neighborhoods and strictly commercial uses; and
WHEREAS, in order to maximize the locational suitability of land uses
according to existing land uses and trafficways, Johnson Street would
serve as a more suitable and appropriate transition between the mixed land
uses to the west and residential land uses to the east; and
WHEREAS, based upon the preceding findings, the City Council of Iowa City,
Iowa, hereby determines that changing the land use classification of the
subject property from Residential at a density of 25+ dwelling units per
acre to Mixed Land Use falls within the context of the goals and objec-
tives of the Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The Short -Range Development Plan Map of the Comprehensive Plan be
amended by changing the land use shown for 528 & 530 Iowa Avenue and
15 N. Johnson Street from Residential at a density of 25+ dwelling
units per acre to Mixed Land Use.
9
Resolution No.
Page 2
It was moved by and seconded by the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Ambrisco
Balmer
Courtney
Horowitz
Larson
McDonald
Passed and approved this day of
1988.
MAYOR
Approved as to Form
ATTEST: �k 1 2e yJ
CITY CLERK Lega Departmen
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RESOLUTION NO. 88-219
RESOLUTION APPROVING AND AUTHORIZING AND DIRECTING THE MAYOR AND
CITY CLERK TO EXECUTE AND ATTEST, RESPECTIVELY, ADDENDUM NO. 3
TO AGREEMENT FOR PROFESSIONAL ENGINEERING AND PROJECT MANAGEMENT
SERVICES, BY AND BETWEEN THE CITY AND METCALF & EDDY, INC., ALL
IN CONNECTION WITH IOWA CITY'S WASTEWATER FACILITIES IMPROVE-
MENTS PROJECT.
WHEREAS, the City and M&E did, on and as of June 17, 1986, execute and
enter into a contract entitled "AGREEMENT BETWEEN THE CITY OF IOWA CITY
AND METCALF & EDDY, INC. FOR PROFESSIONAL ENGINEERING AND PROJECT MANAGE-
MENT SERVICES (hereinafter "the contract"), pursuant to which M&E agreed
to design certain improvements to the City's wastewater collection and
treatment system, to manage the construction of said improvements, to
provide overall project management services to assure that said improve-
ments were constructed so that the City's wastewater system would meet
Federal and State wastewater discharge requirements, and to make its best
effort to complete required facilities, within the timeframes specified by
Federal and State regulatory agencies [Federal Environmental Protection
Agency (EPA) and Iowa Department of Natural Resources (IDNR)) and set
forth in the Master Project Schedule as provided in Section 3 of the
contract; and
WHEREAS, the City and M&E have negotiated the terms of an Addendum to said
contract, herein designated as "Addendum No. 3 to Agreement for Profes-
sional Engineering and Project Management Services," pursuant to which the
parties have agreed:
(a) To incorporate accepted value engineering recommendations into the
plans and specifications, and
(b) To revise contract documents relative to EPA construction grant
requirements, and
(c) Perform additional plan modifications relative to bid packaging,
storm sewer incorporation and minor realignments of the sewer routes.
WHEREAS, this City Council has been advised and does believe that it would
be in the best interests of the City of Iowa City to execute the said
Addendum No. 3.
NOW, THEREFORE, BE, AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA:
That "Addendum No. 3 to Agreement for Professional Engineering and Project
Management Services," attached hereto and made a part hereof, is hereby
approved as to form and content.
AND BE IT FURTHER RESOLVED that the Mayor and City Clerk be, and they are
hereby authorized and directed to execute and attest, respectively, the
said Addendum No. 3 for and on behalf of the City of Iowa City, Iowa.
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It was moved by Balmer and seconded by Ambrisco the
Resolution be adopted, an upon rol call there were:
AYES: NAYS: ABSENT:
X Ambrisco
R Balmer
X Courtney
X Horowitz
X Larson
X McDonald
Passed and approved this 1st day of November , 1988.
YOR
App o e as t Form
ATTEST:
C C K Legal Department
/Ga3
ADDENDUM NO. 3
TO
AGREEMENT FOR PROFESSIONAL ENGINEERING
AND PROJECT MANAGEMENT SERVICES
This ADDENDUM to the AGREEMENT made and entered into by and
between the City of Iowa City, Iowa, a municipal corporation
(hereinafter referred to as "the City" or "the Owner") and
Metcalf & Eddy, inc., a Delaware corporation (hereinafter
referred to as "M&E"),
this 1st day of November , 1988.
Witnesseth:
WHEREAS, the City of Iowa has entered into an AGREEMENT with M&E,
dated June 17, 1986, for Professional Engineering and Project
Management Services in connection with Iowa City Wastewater
Facility Improvements; and
WHEREAS, it is in the City's interest to modify portions of the
major interceptors and relief sewers, a part of the wastewater
facility improvements, under the terms of Section 8.1 of said
AGREEMENT, in order to facilitate the most efficient and
appropriate funding from the State of Iowa and Federal
Environmental Protection Agency, and
WHEREAS, M&E has proposed to perform such Extra Work relative to
the design of the major interceptors and relief sewers.
Now therefore, the City and M&E do hereby agree to amend said
AGREEMENT to reflect the following extra work:
1. Incorporate Accepted Value Engineering (VE) Recommendations:
The parties agree that M&E will provide the necessary design
services to incorporate the accepted Value Engineering
recommendations relative to the project, as defined in the
City's response report dated October 3 , 1988, into the
previously completed design documents.
2. Revise Contract Documents Relative to Construction Grant
Requirements•
In recognition that the City desires to obtain construction
grant funding for a portion of the major inceptors and relief
sewers, the parties agree that M&E will provide the following
additional services:
A. M&E agrees to modify the previously completed contract
documents to incorporate provisions required by the
Iowa DNR to make the contract documents eligible for
construction grants to be awarded for all or portions
of the sewer projects. i
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B. M&E agrees to meet with staff of Iowa DNR to review
eligibility determination of the projects. A maximum
of two meetings is covered by this amendment.
3. Additional Plan Modifications:
In recognition that the City desires to have certain
modifications made to the previously completed contract
documents relative to the major interceptors and relief
sewers, the parties agree that M&E will provide the following !
plan modifications:
A. Develop contract document sections related to
Construction Grant eligibility requirements, bidding
requirements, and contract forms for the sludge force
main. City staff will develop the Division 1-16
specifications and drawings, compile the complete
contract documents and provide registered engineer's -
seal for this construction contract.
B. Repackage major interceptors and relief sewers
contracts into two separate construction contracts:
1. Major and Relief Sewers
2. Benton Street Sewer
C. Realign portions of the Southeast Interceptor
specifically related to the South Ralston Creek Segment
- Phase I, Snyder Creek Segment - Section C, and Benton
Street Interceptor.
D. Incorporate storm sewer design into contract documents
for the Southeast Inceptor specifically related to the
South Ralston Creek Segment - Phase II, inclusive of
all resulting sanitary sewer design modifications and
realignment associated with this work.
E. Provide descriptions of new required easements in
sufficient detail to enable City to develop and prepare
plats and legal descriptions.
Extra work to be performed under the terms of items 2A and 3.4 of
this ammendment suitable for DNR review will be delivered to the
City on or before November 11, 1988. Revised documents
incorporating all remaining extra work to be performed under the
terms of this amendment suitable for DNR review will be delivered
to the City on or before November 29, 1988.
2
The parties further agree that compensation for the extra work
performed under this amendment to the AGREEMENT shall be on a
lump sum basis, broken down as follows:
Incorporation of Accepted VE
Recommendations ......................... $ 25,000.00
Document Revision Relative to Construction
Grants ...................................$ 13,200.00
Additional Plan Modifications ............... $ 27,100.00
TOTAL $ 65,300.00
Payment for above extra work shall be due to M&E within fifteen
days of DNR approval of the modified contract documents.
Except for the additions contained in this amendment, the terms
and conditions of the AGREEMENT, executed on June 17, 1986, as
amended by Addendem No.l, executed on April 21, 1987 and Addendum
No. 2, executed on March 8, 1988, shall remain in full force and
effect.
Executed as a sealed instrument on the day and year first written
above.
THE CITY OF IOWA CITY:
By?oh—nMCDO—nap Mayor
ATTEST:
Marian K. Karr, City Clerk
Received and Approved by
the Legal Department:
By:
Date:
METCALF & EDDY, I C.
BM/� X-44
dward K. 4g
an
ce-President
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The parties further agree that compensation for the extra work
performed under this amendment to the AGREEMENT shall be on a
lump sum basis, broken down as follows:
Incorporation of Accepted VE
Recommendations ......................... $ 25,000.00
Document Revision Relative to Construction
Grants ...................................$ 13,200.00
Additional Plan Modifications ............... $ 27,100.00
TOTAL $ 65,300.00
Payment for above extra work shall be due to M&E within fifteen
days of DNR approval of the modified contract documents.
Except for the additions contained in this amendment, the terms
and conditions of the AGREEMENT, executed on June 17, 1986, as
amended by Addendem No.l, executed on April 21, 1987 and Addendum
No. 2, executed on March 8, 1988, shall remain in full force and
effect.
Executed as a sealed instrument on the day and year first written
above.
THE CITY OF IOWA CITY:
By?oh—nMCDO—nap Mayor
ATTEST:
Marian K. Karr, City Clerk
Received and Approved by
the Legal Department:
By:
Date:
METCALF & EDDY, I C.
BM/� X-44
dward K. 4g
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ce-President
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STATE OF IOWA )
SS:
JOHNSON COUNTY)
On this 1st day of November , 1988, before me, a Notary
Public in and for the State of Iowa, personally appeared John
McDonald and Marian K. Karr, to me personally known, and who,
being by me duly sworn, did say that they are the Mayor and City
Clerk, respectively, of the City of Iowa City, Iowa, an Iowa
municipal corporation; that the seal affixed to the foregoing
Agreement is the seal of said City; that said instrument was
signed and sealed on behalf of said City by authority of its City
Council, and that John McDonald and Marian K. Karr, as such
officers, acknowledged the execution of said instrument to be the
voluntary act and deed of said City by it and by them voluntarily
executed.
Given under my hand and seal of office,this 1st day
of November , 1988.
Aw"a ('i
Nt ry Public in and for the State of Iowa
4
CERTIFICATE OF ASSISTANT SECRETARY
I, Barbara A. LoVuolo, hereby certify that I am the Assistant Secretary
of Metcalf & Eddy, Inc., a Delaware Corporation, and that the following
resolution was duly adopted at a meeting of the Board of Directors of the said
Corporation held in Wakefield, Massachusetts, on September 21, 1987, at which
a quorum was present and voting throughout:
RESOLVED: that any officer of this Corporation or other
designated employees, except where otherwise
required by law, be, and each of them is, hereby
authorized to sign and deliver and, if and as
appropriate, affix the corporate seal to and acknow-
ledge any proposal or contract with any individual,
partnership, corporation, association, government or
any subdivision or agency of any government for the
performance of professional services by this
Corporation or incidental to or related to the per-
formance of any such services.
1, further certify that the foregoing resolution has not been modified
or rescinded and remains in full force and effect on this 18th day of October, 1988.
I, further certify that the present Officers of Metcalf & Eddy, Inc.
mentioned in the foregoing resolution are as follows:
President & Chief Executive Officer
Regional Vice Presidents
Robert G. Bening
John Dedyo
William L Durham
Edward K. Fagan
Charles E. Pound
Ben Taguchi
Jekabs P. Vittands
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Senior Vice Presidents
Vice Presidents
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George A. Bicher
Stephen L. Bishop
Joseph L. Boren
David P. Bova
Marilyn Bracken
John G. Chalas
J. C. Goldman
Merna Hurd
George K. Tozer
James Anderson
John A. Arthur
Richard L. Ball, Jr.
Anthony N. Borowiec
George C. Bottger
Olivia L. Chen
Neville K. Chung
James C. DeLaura
Ibrahim Elsammak
Allen F. Goulart
Eugene S. Grafton
Edward M. Greco
Richard D. Howard
Lawrence P. Jaworski
George Kaneko
Terry L. Krause
James Kumagi
John A. Lager
Joseph P. Madden
Norman E. Ross, Jr.
Francis Sanpei
Richard C. Sperandio
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Vice President/Chief Finanical Officer
Dana S. Brigham
Vice President/General Counsel/
Secretary
Associates
W. Robson Googins
Treasurer
James C. Dobbs
Donald L. McCorvey, Jr.
James Osborn
Vernon D. Thompson
WITNESS MY HAND and the seal of Metcalf & Eddy, Inc., this 18th day
of October, 1988.
Assistant Secretary
(Seal)
On this eighteenth day of October, 1988, before me appeared Barbara A.
LoVuolo, being duly sworn of Assistant Secretary of Metcalf Eddy, Inc.
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Tracy�ney
Notary Public
My Commission Expires 5/27/94
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�\ City of Iowa City
M E M O R A N D U M
T0: Steve Atkins
FROM: Chuck Schmadeke
DATE: October 27, 1988
RE: Metcalf & Eddy Agreement for Professional Engineering
and Management Services - Addendum 03
Addendum #3 has been negotiated with Metcalf & Eddy to
incorporate the following three items into the plans and
specifications. As the original designers of the projects,
Metcalf & Eddy is the best choice to incorporate the following
changes in a timely and cost effective manner. In addition,
retaining Metcalf & Eddy for these changes will not cloud the
issue of design accountability that could arise if another firm
were retained for these services.
1. Incorporate Accepted Value Enoineering'(VE) Recommendations
The VE study completed by Stanley Consultants presented a
number of design changes to reduce project costs. Each of
the design changes has been evaluated to determine if it is
in the City's best interest. Design changes which will
produce approximately $1,000,000 in savings will be
incorporated into the plans and specifications. Although
these design changes will save a substantial amount of
money, staff does not expect the bid prices to be
significantly less than the present cost estimate prepared
by Metcalf & Eddy because, as was mentioned to Council
previously, staff believes this estimate is low.
2.
It now appears that approximately $3,000,000 to $5,000,000
in state and federal money will be available to help fund
the sewer projects. As part of the process to become
eligible for this money, the plans and specifications must
be revised to incorporate EPA requirements.
3. Additional Plan Modifications
The Washington Park storm sewer design has been completed by
City staff and will be integrated into the Southeast
Interceptor Ralston Creek Segment - Phase II Project. In
addition, some realignments resulting from property
negotiations must be incorporated.
These items will cost $25,000.00, $13,200.00 and $27,100.00
respectively totaling $65,300.00.
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RESOLUTION NO. 88-220
RESOLUTION OF INTENT TO DISPOSE OF A PORTION OF MADISON STREET
RIGHT-OF-WAY BETWEEN MARKET STREET AND BLOOMINGTON STREET TO THE
UNIVERSITY OF IOWA.
WHEREAS, this City Council is in the process of vacating a portion of
Madison Street right-of-way between Market Street and Bloomington Street.
Said parcel is legally described as follows:
Beginning at the Southeast corner of Outlot 35 as recorded in
Plat Book 2, page 73, in the Johnson County Recorder's Office on
the Westerly right-of-way line of Madison Street; thence North
00000'00" East along the Westerly right-of-way line of Madison
Street 405.00 feet to a point; thence North 90000'00" East 24.00
feet to a point; thence South 90000'00" West 405.00 feet to a
-- point; thence South 90000'00" West 24.00 feet to the point of
beginning. Said parcel contains 9,720 square feet (0.22 acres,
more or less).
WHEREAS, the University of Iowa needs to acquire this right-of-way to
accommodate construction of the new Laser Laboratory Building, and
WHEREAS, the disposition of this right-of-way is contingent upon the
University agreeing to reconstruct any portions of an existing sidewalk
that may be damaged during construction of the new Laser Laboratory
Building and to designate a pedestrian easement in the proposed vacated
area where it partially or completely covers the sidewalk to assure
perpetual maintenance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY THAT:
The City Council does hereby declare its intent to convey its interest in
the above-described vacated right-of-way to the University of Iowa,
subject to the University agreeing to the above-mentioned contingencies.
AND, BE IT FURTHER RESOLVED THAT:
A public hearing on said proposal be set for November 15, 1988, and that
the City Clerk be and is hereby authorized, empowered and directed to
cause Notice of Public Hearing to be published as provided by law relative
to the proposal hereinafter set forth.
It was moved by Ambrisco and seconded by Horowitz the
Resolution be adapted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Ambrisco
X Balmer
X Courtney
X Horowitz
X Larson
X McDonald
A
Resolution No. 88_220
Page 2
Passed and approved this 1st day of November , 1988.
Lz z a-�
YOR
Approved as to Form
ATTEST: %i10 . ,_ J 7i 44�V /o�i7/f8
CIT CLERK Legal Department
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RESOLUTION NO. 88-221
RESOLUTION REQUESTING A SPECIAL ELECTION TO FILL
VACANCIES IN OFFICE CREATED BY THE RESIGNATION OF TWO
AT -LARGE COUNCILMEMBERS.
WHEREAS, Councilmember-at-large Kate Dickson, whose term of office was to
expire on January 2, 1990, resigned that office effective August 24, 1988;
WHEREAS, Councilmember-at-large George Strait, whose term of office was to
expire on January 2, 1992, resigned that office effective September 7,
1988; and
WHEREAS, this City Council has determined that it would be in the best
interests of the City of Iowa City to fill said vacancies by special
election, as provided by Section 472.13 of the Iowa Code.
NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA, that the Johnson County Auditor is hereby
requested to hold and conduct a special election within the City of Iowa
City on January 10, 1989, for the election of two Councilmembers-at-large
to fill the remaining unexpired terms of the Councilmembers who resigned.
AND, BE IT FURTHER RESOLVED that the ballot for said special election be
for the election of two Councilmembers-at-large, one for a term to expire
on January 2, 1990, and the other for a term to expire on January 2, 1992.
It was moved by Ambrisco and seconded by Courtney the
Resolution be adopted, ani dupon roll call there were:
AYES: NAYS: ABSENT:
X Ambrisco
X Balmer
X Courtney
X Horowitz
X Larson
X McDonald
Passed and approved this 1st day of November 1988.
190
OR
Ap ro as to orm
ATTEST: Q..,J ,N yG.�L
CITY`CLERK Lega Department
/Gas
City of Iowa City
MEMORANDUM
DATE: August 30, 1989
TO: Marian Karr, City Clerk
0/
FROM: Loanna Stroud, Finance M "
RE: UDAG Mortgage Amendment
This memo is in regards to the UDAG Mortgage Agreement, Resolution Number 88-222
titled "RESOLUTION AUTHORIZING AN AMENDMENT TO THE URBAN DEVELOPMENT ACTION GRANT
MORTGAGE NOTE WITH MID -CITY HOTEL ASSOCIATES -IOWA CITY, THE EXECUTION OF CERTAIN
DOCUMENTS RELTAING TO THE EXPANSION OF THE IOWA CITY HOLIDAY INN, AND RELATED
MATTERS". This Resolution was adopted and approved November 1, 1988 and was
properly executed by City personnel and was sent to Tom Stanberry, City's Bonding
Attorney, for him to get signatures from Harry A. Johnson, Jr., Mid -City Hotel
Associates, and two signed copies were to be returned to the City that were fully
executed. Well, after many months of pain and suffering, I have been unable
to get the signed copies returned to me. Mid -City has filed bankruptcy and
according to Tom Stanberry and Linda Gentry, 1st Asst. City Attorney, the chances
of these documents being returned are next to nil until after the bankruptcy
is settled (which may be an eternity). In order to get your 88 files
microfilmed, go ahead and microfilm this file but please make sure and keep the
original documents in that file. If keeping those original documents will cause
a problem I will be more than happy to store them. Sorry for the long wait
but.................
A.
• Ina r, r ... .ea • I.. cz .n
RES. NO. 88-222
RESOLUTION AUTHORIZING All AMENDMENT TO THE URBAN
DEVELOPMENT ACTION GRANT MORTGAGE NOTE WITH MID -CITY
HOTEL ASSOCIATES -IOWA CITY, THE EXECUTION OF CERTAIN
DOCUMENTS RELATING TO THE EXPANSION OF THE IOWA CITY
HOLIDAY INN, AND RELATED MATTERS
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WHEREAS, the City of Iowa City, Iowa (the "City") entered
into an Urban Development Action Grant Mortgage Note dated
November 30, 1983 (the "UDAG Note") with Harry A. Johnson, Jr.,
M,D., d/b/a Mid -City Hotel Associates -Iowa City ("Mid -City")
and a Mortgage and Security Agreement dated December 30, 1983
(the "UDAG Mortgage") with Mid -City both relating to a loan of
th• proceeds of an Urban Development Action Grant by the City
to Mid -City to finance a portion of the construction of a hotel
and related facilities located within the corporate limits of
the City (the "Project"); and
WHEREAS, Mid -City is expanding the Project and has
requested the City to subordinate its UDAG Mortgage to a
Construction Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Financing Statement (the "Ohio 'Mortgage")
in favor of The Ohio National Life Insurance Company ("Ohio")
which secures a loan from Ohio to Mid -City in the amount of
$2,500,000 made to finance the addition to the Project; and
WHEREAS, the City Council of the City has been presented
with the form of a Subordination Agreement by and among the
City, Ohio and Ilid-City (the "Subordination Agreement"),
Amendments to Urban Development Action Grant Mortgage Note
between the City and Mid -City (the "Amendments"), a Consent and
Agreement from the City to the Collateral Assignment of Parking
Agreement between Mid -City and Ohio (the "Consent"); and
WHEREAS, the City Council of the City believes the best
interests of the City are served by subordinating its UDAG
Mortgage to the Ohio Mortgage and by the execution of the
documents relating thereto,
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED BY THE CITY
COUNCIL OF THE CITY OF IOWA CITY, IOWA AS FOLLOWS:
1. That the City subordinate its UDAG Mortgage to the Ohio
Mortgage by an amount not to exceed $2,500,000.
2. That the UDAG Note be amended in accordance with the
terms of the Amendment.
-1-
Wo
3. That the Mayor and the City Clerk of the City be and
they hereby are authorized to execute the Subordination
Agreement, the Amendment and the Consent in substantially the
form before this meeting with such modifications therefrom as
legal counsel for the City shall approve, provided that the
execution of such documents by the City shall be conclusive
evidence of the City's approval of such modifications.
4. That the Mayor and the City Clerk be and they hereby
are authorized to do all such things necessary to effect the
transactions of which the Subordination Agreement, the
Amendment and the Consent are a part and which are approved by
Ahlers, Cooney, Dorweiler, Haynie, Smith i Allbee, as special
counsel to the City.
5. That the provisions of this Resolution are hereby to be
separable and if any section, phrase or provision shall for any
reason be declared to be invalid, such declaration shall not
affect the validity of the remainder of the sections, phrases
or provisions.
6, All Resolutions and orders or parts thereof, in
conflict herewith are, to the extent of such conflict, hereby
repealed and this Resolution shall be in full force and affect
immediately upon its adoption.
Adopted and approved November 1 1 1988.
City of Iowa City, Iowa
(Seal)
Attest:
.2-
i
It was moved by Balmer and seconded by Courtney ,
that the Resolution as reade a opted, and upon roll call t ere were:
AYES:
Ambrisco
X
Balmer
X
Courtney
X
Horowitz
X
Larson
X
McDonald
X
NAYS: ABSENT:
COLLATERAL ASSIGNMENT OF PARKING AGREEMENT
THIS ASSIGNMENT is made , 1988 from HARRY
A. JOHNSON, JR., an individual doinq�iness as Mid -City Hotel
Associates - Iowa City (the "Borrower") to THE OHIO NATIONAL
LIFE INSURANCE COMPANY, a (the "Lender").
WITNESSETH:
WHEREAS, Borrower and the City of Iowa City, Iowa,
a municipal corporation (the "City") have entered into a Parking
Agreement dated December 23, 1983 (the "Parking Agreement")
relating to a hotel facility on Block 64, Iowa City, Iowa (the
"Hotel Premises"); and
WHEREAS, the Borrower and Lender have entered into
a Construction Loan Agreement dated the date hereof (the "Loan
Agreement") pursuant to which the Lender has agreed on the terms
and conditions set forth therein, to lend to Borrower the sum
of $2,500,000 (the "Loan"), to construct an addition to a Holiday
Inn located on the Hotel Premises, the Loan to be evidenced
by Borrower's Promissory Note dated the date hereof payable
to the order of the Lender and maturing December 1, 1996 (the
"Note"), disbursed pursuant to a Disbursing Agreement dated
hereof (the "Disbursing Agreement") among Borrower, Lender and
(the "Disbursing Agent") and secured by a
Construction Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Financing Statement (the "Mortgage") and
by other collateral. The Loan Agreement, Note, Disbursing
Agreement and Mortgage are hereinafter collectively referred
to as the "Loan Documents".
NOW, THEREFORE, in order to secure the performance
by the Borrower of its obligations under the Loan Documents
and to secure Borrower's obligation to repay the Lender for
the principal of, premium, if any, and interest on the Note,
Borrower hereby grants, transfers and assigns to Lender all
of Borrower's right, title and interest in and to the Parking
Agreement.
TO PROTECT THE SECURITY OF THIS ASSIGNMENT, BORROWER
AGREES AS FOLLOWS:
1. Borrower shall fully and promptly perform all
of the terms and conditions of the Parking Agreement; will
enforce and secure the performance of the terms and the
conditions of the Parking Agreement by the City; will give prompt
written notice to the Lender of any default by the City under
the Parking Agreement; and will not amend, cancel or terminate
the Parking Agreement without the prior written consent of the
Lender.
2. Should Borrower fail to perform any act as herein
provided, or in any way default in any of the terms and
conditions hereof or of the Parking Agreement, then Lender,
but without obligation so to do, and without notice to or demand
on Borrower, and without relieving Borrower from any obligation
herein or in the Loan Documents, may make or perform the same
and correct any such default in such manner and to such extent
as Lender may deem necessary to protect the security hereof,
including specifically, without limitating its general powers,
the right to appear in and defend any action or proceeding
purporting to affect the security hereof or the rights or powers
of Lender, and also the right to perform and discharge each
and every obligation, covenant and agreement of Borrower in
the Parking Agreement contained; and, in exercising any such
powers, to pay necessary costs and expenses, employ counsel
and incur and pay reasonable attorneys' fees.
3. Borrower shall pay immediately upon demand all
sums expended by Lender, and all indebtedness incurred by Lender
under the authority of this Assignment, together with interest
thereon at the Default Rate, as defined in the Mortgage, and
the same shall be added to the sums secured hereby and by the
Mortgage.
4. Any default by Borrower in the performance of
any obligation, covenant or agreement herein contained shall
constitute or be deemed to be a default under the terms of the
Loan Documents, entitling Lender to every and all rights and
remedies contained therein, including specifically the right
to declare a default thereunder and to foreclose the Mortgage
as provided by law.
5. The Lender shall not be obligated to perform or
discharge, nor does it hereby undertake to perform or discharge
any obligation, duty or liability under the Parking Agreement,
or by reason of this Assignment. Borrower shall indemnify the
Lender against and hold it harmless from any and all liability,
loss or damage which Lender may or might incur under the Parking
Agreement or under or by reason of this Assignment and of and
from any and all claims and demands whatsoever which may be
asserted against it by reason of any alleged obligations or
undertaking on its part to perform or discharge any of the terms,
covenants or agreements contained in the Parking Agreement,
or by reason of the exercise of any of its rights or remedies
hereunder. Should Lender incur any such liability, loss or
damage under the Parking Agreement or under or by reason of
this Assignment, or in the defense of any such claims or demands,
the amount thereof, including costs, expenses and reasonable
attorneys' fees, together with interest thereon at the Default
Rate, shall be secured hereby and by the Mortgage, and Borrower
shall reimburse Lender therefor immediately upon demand, and
-2-
1 (OWO
upon the failure of Borrower so to do, Lender may declare all
sums secured hereby immediately due and payable.
6. This Assignment shall be construed and enforced
according to the laws of the State of
7. Borrower covenants and warrants to Lender that
(a) Borrower has good and lawful right and full power and
authority under applicable law to execute this Assignment and
to perform the obligations hereunder, and Borrower is not bound
by any law or agreement which might prevent Lender from
exercising any of its powers or rights under this Assignment
or which limits the Lender in such exercise; (b) Borrower has
not executed any prior assignment of, and has not otherwise
encumbered the Parking Agreement or its right, title and interest
therein; (c) there is no default now existing under the Parking
Agreement; (d) Borrower has not amended or waived any provision
of the Parking Agreement;. and (e) the Parking Agreement is in
full force and effect according to the original terms and
conditions thereof.
8. In the event any provision of this Assignment
shall be held or deemed to be or shall, in fact, be illegal,
inoperative, invalid or unenforceable, the sale shall not affect
any other provision or provisions herein contained or render
the same illegal, inoperative, invalid or unenforceable to any
extent whatever.
9. This Assignment may be effectively amended,
changed, modified, altered or terminated only with the prior
written consent of the parties hereto.
10. All notices, demands or documents which are
required or permitted to be given or served hereunder shall
be in writing and shall be deemed given when delivered or mailed
in the manner set out in the Mortgage.
IN WITNESS WHEREOF, the Borrower has executed this
Assignment as of the day and year first above written.
-3-
Harry A. Johnson, Jr.
d/b/a Mid -City Hotel
Associates - Iowa City
W40
i
STATE OF )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me
this day of , 1988, by HARRY A. JOHNSON, JR.,
d/b/a Mid -City Hote Associates - Iowa City.
THIS INSTRUMENT DRAFTED BY:
Dorsey a Whitney
2200 First Bank Place East
Minneapolis, Minnesota 55402
-4-
i
I _
STATE OF )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me
this day of , 1988, by HARRY A. JOHNSON, JR.,
d/b/a Mid -City Hote Associates - Iowa City.
THIS INSTRUMENT DRAFTED BY:
Dorsey a Whitney
2200 First Bank Place East
Minneapolis, Minnesota 55402
-4-
CONSENT AND AGREEMENT
The City of Iowa City, Iowa (the "City") hereby
consents to the foregoing Assignment and represents and agrees
that:
i. No default exists in the Parking Agreement.
2. If the Borrower should default in the performance
of any term or condition of the Parking Agreement, the City,
ibefore taking any action to terminate the Parking Agreement,
will give the Lender written notice of such default and a
reasonable time to cure the same.
3. If the Lender should foreclose the Mortgage, or
accept a deed in lieu of such foreclosure, the City shall
recognize the Lender, its assignee or the purchaser at
foreclosure sale as the owner of the interests of the Borrower
under the Parking Agreement and, at the request of the Lender,
its assignee or such purchaser, will enter into a new parking
agreement with such party containing the terms and conditions
set forth in the Parking Agreement.
Date: CITY OF IOWA CITY, IOWA
ayor
ATTEST:
City'Clerk
STATE OF IOWA )
ss.
COUNTY OF JOHNSON)
On this 4th day of November , 1988, before me,
a notary public duicommissioned and qualified in and for said
County and State, personally appeared John McDonald , Mayor
of the City of Iowa City, Iowa, and Dlaria�n K. Karma, City Clerk
of said City, each being to me personally known to be the
identical persons and officers named in the foregoing instrument,
who executed the same under and by virtue of the authority vested
in them by the City Council of said City, each for himself/her-
self acknowledged the execution thereof to be his/her voluntary
act and deed for purposes herein expressed.
IN TESTIMONY WHEREOF, I have hereunder set my and
and notarial Seal at Iowa City, Iowa, the day and year last
above written.
-2-
ROF/869722.e! .0e
15029
• wTHIS AGREEMENT, made and entered into as of
1988, by and among THE CITY OF IOWA CITY, IOWA, an
Iowa =ai municipal corporation (the •City"), THE OHIO RATIONAL LIFE
HARRY
A.
COMPANY
NS0111 �n on; tattoo (the •Lender•), and
HARRY A. JOHNSON, JR., d/b/a Mid -C ty otel Associates - Iowa
City (the68orroweto).
WITNESSETH:
WHEREAS, the Borrower and Lend r have entered into a
Construction Loan Agreement dated as oy 1908 (the
'Loan Agreement-) pursuant to which the Len er ha -2;Q reed on
the terms and condition& set forth therein, to lend to Borrower
the sum of $2,500,000 (the •Loan•), and
WHEREAS, in order to secure payment of the Loan and
Performance of its obligations under the Loon Agreament, the
I Borrower h
Mortgage, Assignment of Leases and tRents +iBeCurityuAgreement
And Fixture Financing Statement, dated as C ANQyAmba_, 1988
(the •OhiO National Mortgage-), covering the property described
therein (the -Mortgaged Property,), which includes the real
property described on Exhibit A attached hereto; and
WHEREAS, the Ohio Notional Mortgage was recorded with
the Johnson County, Iowa Recorder on 1968 as File
No. Book , Page
and
WHEREAS, the Borrower has executed a Mortgage dated
December 30, 1983 with the City, as mortgagee (the -UDAG
Mortgage"), which Mortgage is recorded in Book 682 of
Mortgages, Page 128, in the office of the Johnson County, Iowe
Recorder; and
WHEREAS,
as a
of the
Loan, Lander hasrequired nthat oprecedent
theCity subordinategthe uDAG
Mortgage and its interest in the Mortgaged Property in ail
respects to the lien of the Ohio National Mortgage.
follows: NOW, THEREFORE, the parties hereto hereby agree as
RECEIVED FROM 11.10.1909 1066 )4(p
P. 2
1. Subordination. The UDAG Mortgage, and the rights
Of City in, to or under the UDAG Mortgage and the Mortgaged
Property, are hereby subjected and subordinated and shall
remain in all respects and for all purposes subject,
subordinate and junior to the lien of the Ohio National
Mortgage, and to the rights and interest of the from time to
time holder of the Ohio National Mortgage, as fully and with
the same effect as if the Ohio National Mortgage had been duly
executed, acknowledged and recorded, Ord the indebtedness
secured thereby had been fully disbursed prior to the execution
of the UDAG Mortgage.
2. Reliance bv_Larder. The partiss are executing
this instrument in order to induce :,ender to make the Loan, and
the parties further agree that making of the Loan shall
constitute conclusive reliance by Lender upon this instrument
and the provisions hereof and the subordination effected hereby.
3. Foreclosure. Subject to Section 16(a), (c) and
(i) through and including (vii) of the UDAG Mortgage, in the
event action is taken to foreclose the lien of the Ohio
National Mortgage, either pursuant to a power of sale or by
Judicial proceedings, or by deed in lieu of foreclosure, quit
claim or like action, Lender, or any subsequent purchaser,
shall not be required to recognize the rights of the City under
the UDAG Mortgage, and the rights of the City thereunder,
shall, at the sole election of and upon notice from the Lender,
cease and terminate upon acquisition of title to or upon
possession of the Mortgaged Property by Lender, or its
successors and assigns, including any purchaser at a
foreclosure sale. The LwnAwr anA tiha__City. Aaron Mh■♦ all
1. Successors and Assigns, This Agreement and each
and every covenant, agreement and other provision hereof shall
be binding .upon the parties hereto and their heirs,
administrators, representatives, successors and assigns,
including without limitation, each and every from time to time
holder of the UDAG Mortgage or any other person having an
interest therein and shell inure to the benefit of the Lender
and its successors and assigns.
5. Choice of L■v. This Agreement is made and
executed under and in all respects is to be governed and
_2_
Yr.`r111r11 fto
1c1acV
II.Ia.1000 ILII• 0
Construed by the laws Of the State where the Mortgaged property
are situate.
6' IL &din".The captions and headings
Of the various ■aotiona of this Agreement are for convenience
only and are not to be construed as confining or limiting in
any way the scope or intent Of the provisions hereof. Whenever
the contest requires Or permits, the singular shall include the
Plural, the plural shall include the singular and the
masculine, feminine and neuter shall be freely interchangeable.
7. Nokias!- All notices provided for herein shell be
in writing and shall be deemed to have been duly given (i) if
delivered personally (including delivery by messenger or other
courier), upon delivery, (ii) if by mail, when deposited in the
United States mail, registered or certified mail, postage
prepaid,,N,L (iii) if by telegraph communicjktion when delivered
to the telegraph company, charges prepaidi
snd n each case
addressed as follows:
If to the City: Slty, o! Iowa City, Iowa
IOwa C__fv, Iowa 52240
ALL
n: Mavor
If to Lender: The Ohio National Life Insur:nc:
Company
0 2 7
C ncinnat 0 o 45201
Attn: Aanitmlte ar ment
If to Borrower: Harry A. Johnson, Jr.
Mid -City Hotel Associates
- Iowa City
c/o Pineapple Management Company
Park Place West Office Center
6465 Waysata Boulevard, Suits 920
Minneapolis, Minnesota 55426-1725
or addressed to any such party at such other address as such
party Shall hereafter furnish by thirty (30) days, prior
written notice to the other parties.
MIM
I �at�
,9CU ¢a :Ron
_. II.11J tae IHU r. ,
n
44 -ERS LAW FIRM DES MOINES IA
P. 02
IN WITNESS WHEREOF, the parties hereto have each
caused this Agreement to be executed as of the date first above
written.
(SEAL) �l THE CITY OF IOWA CITY, IOWA
Attest:/ gY�
City Clerk s ��avor
THE OHIO NATIONAL LIFE
INSURANCE COMPANY
By
Its
Harry A. Johnson, Jr.
d/b/a Mid -City Hotel
Associates - Iowa City
STATE OF IOWA )
) ss.
COUNTY OF JOHNSON)
CA }h{A loth d.av of llovembAz; 1064 betoG4 me, a
notary public in and for the State of Iowa, personally appeared
,John �tDonald , Mayor of the City of Iowa City, Iowa, an Iowa
municipal corporation, and `+arian K. Karr , City Clark of said
City, each being to me personally known to be the identical
persons and officers named in the foregoing instrument; that
the seal affixed to the foregoing instrument is the Seal of
said City; that the foregoing instrument was signed and sealed
on behalf of said City by authority of its City Council and
Maynr end City Clerk , as such officers,
acknowledged the execution thereof to be the voluntary act and
deed of said City by it and by them voluntarily executed.
IN TESTIMONY WHEREOF, I have hereunder sat my and and
notarial Seal at Iowa City, Iowa, the day and year last above
written.
-,-
I(Oa0
I
STATE OF
COUNTY OF )
The Lorpoinq instrument was acknowledged /befoore me
this _ day o�pq;�'1988, by -
of •mr; vMiv AATIONJW LIFE INSURANCE COMPANY, an Ohio
he
corporation, on behalf Of said corporation.
STATE OF MINNESOTA )
� ss.
COUNTY OF )
The fo !going instrument was acknowledged before me
this _ d0Y o� 1988, by HARRY A. JOHNSON. JR., d/b/a
Kid -City Hotel Assoc a es - Iowa City.
THIS INSTRUMENT DRAFTED BY:
Dorsey a Whitney
2200 First Bank Place East
Minneapolis, Minnesota $5402
-5-
I
EXHIBIT A
All that certain parcel or parcels of land located in Block
649 Bloek 82 and vacated Dubuque Street, Original Town, the
City of low& City, County of .Johnson, state of Iowa, More
particularly described as follows#
Commencing at a point of reference at the Northeasterly corner
of said Block 641
thence South 89 degrees 59 Minutes 20 seconds West 222.00 fest
along the Northerly line of said Block 64 to the point of
beginning (this is an assumed bearing for purposes of this
description onlyll
thence South 0 degrees 07 minutes 00 seconds East 199.54 feet
along a line parallel with the Easterly line of said Block 64
to a point on a Northerly outside face of wall of a parking
rarap l
thence North 89 degrees 55 minutes 47 seconds West 79,34 feet
along the said Northerly outside face of wall to a point an an
Easterly outside face of wall of said parking ramp)
thence North 0 degrees 04 minutes 14 seconds East 3.24 feet
along the said Easterly outside face of wall to a point on a
Northerly outside face of wall of said parking rarapl
thence North 89 degrees 41 minutes 37 second■ West 20.40 feet
along said Northerly outside face of wall and said line
extended to a point on the Westerly line of said Block 641
thence North 45 degrees 04 minutes !0 seconds West 64.54 feet
to a point of intersection with the Southerly line of Lot 1,
Of said Block 829 extended Easterlyl
thence North 89 degrees 58 minute■ 12 seconds West 72.86 feet
along the Southerly line of said Lot 1 extended Easterly to a
point(
thence North 0 degrees 04 minutes 10 seconds West 150.74 feet
along the West line of the East 38.50 feet of said Lot 1 to a
point on the Northerly line of said Block 821
thence South 89 degrees 47 minutes 25 seconds East 78.50 feet
along the Northerly line of said Block 82 and said line
extended to a point on the centerline of said Dubuque Strestl
thence North 89 degrees 59 minutes 20 seconds East 139.57 feet
along the Northerly line of said Block 64 extended Westerly
and the Northerly line of said Block 64 to the point of
beginningl
�t�a�
AMENDMENT TO URBAN DEVELOPMENT ACTION GRANT MORTGAGE NOTE
Harry A. Johnson, Jr., M.O., d/b/a Mid -City Hotel Associates - Iowa City
(the 'Maker') and the City of Iowa City, Iowa (the 'City' or 'Payee' or
'Holder') hereby agree to amend the Urban Development Action Grant (UDAG)
Mortgage Note, dated December 30, 1983, in original principal amount of
$2,081,000 delivered by Maker to the City, as follows:
I. In paragraph (a), effective upon issuance of a Certificate of
Occupancy by the City for additional rooms, the term 'Project' shall
be amended to mean the 178 room hotel originally constructed on the
Mortgaged Property, plus any additional rooms added to the Mortgaged
Property, and all facilities which are either operated in conjunction
with the hotel, including without limitation of the foregoing,
banquet and meeting rooms, restaurants and bars, or which are within
the hotel structure, such as leased spaces.
2. In paragraph (f), the phrase 'twenty-five percent (25%) of the value
of the Project' shall be amended to read 'eighteen and one-half
percent (18.5%) of the value of the Project.'
3. In paragraph (g), the phrase 'twenty-five percent (25%) of the Net
Proceeds from any sale, exchange or other disposition of the Project,
in whole or in part, or refinancing of the Project' shall be amended
to read 'eighteen and one-half percent (18.5%) of the Net Proceeds
from any sale, exchange or other disposition of the Project, in whole
or in part, or refinancing of the Project.'
4. Paragraphs 2 and 3 shall be effective as of January 1, 1989.
5. Except as expressly provided herein, all other terms and conditions
of the UDAG Mortgage Note, and the Mortgage and Security Agreement
securing that Note, are unchanged.
I
IcDatp
ri
IN WITNESS WHEREOF the parties have caused this Amendftnt to be executed
as of the _ day of 1988.
CITY OF IOWA CITY, IOWA
By: By:
hn McDonald, Mayor Harry A. Johnson, Jr.
ATTEST:
Marian K. Karr, City Clerk
IN WITNESS WHEREOF the parties have caused this Amendftnt to be executed
as of the _ day of 1988.
CITY OF IOWA CITY, IOWA
By: By:
hn McDonald, Mayor Harry A. Johnson, Jr.
ATTEST:
Marian K. Karr, City Clerk
ROF/869722.49/10.27.88
SUBORDINATION AGREEMENT
THIS AGREEMENT, made and entered into as of
1988, by and among THE CITY OF IOWA CITY, IOWA,
an Iowa mun cipal corporation (the "City"), THE OHIO NATIONAL
LIFE INSURAN COMPANY, a (the "Lender"), and
HARRY A. JOHN ON, JR., d/b a M1 -City Hotel Associates - Iowa
City (the "Bor ower").
WHEREAS, the Borrower and nder have entered into
a Construction :,oa Agreement dated s of 1988
(the "Loan Aqreemen ") pursuant to hick t e Len er as agreed
on the terms and ce itions set f rth therein, to lend to
Borrower the sum of 2,500,000 ( he "Loan"); and
WHERAS, in o der to ..ecure payment of the Loan and
performance of its obli atio s under the Loan Agreement, the
Borrower has granted to en er that certain Construction
Mortgage, Assignment of ses and Rents, Security Agreement
and Fixture Financing St ement, dated as of
1968 (the "Ohio Nations M rtgage"), covering—Me property
described therein (the "Mor gaged Property"), which includes
the real property de ribed Exhibit A attached hereto; and
WHEREAS, he Ohio Na ional Mortgage was recorded with
the Johnson Count Iowa Record r on 1988 as File
No. , B ok , Page
and
WHER AS, the Borrower ha executed a Mortgage dated
December 30, 983 with the City, as mortgagee (the "UDAG
Mortgage"), hich Mortgage is record d in Book 682 of Mortgages,
Page 128, i the office of the Johnso County, Iowa Recorder;
and
WHEREAS, as a condition precedent to making of the
Loan, L oder has required that the City subordinate the UDAG
Mortgage and its interest in the Mortgaged Property in all
respe is to the lien of the Ohio National Mortgage.
NOW, THEREFORE, the parties hereto hereby agree as
fo ows:
1. Subordination. The UDAG Mortgage, and the rights
of City in, to or under t e UDAG Mortgage and the Mortgaged
Property, are hereby subjected and subordinated and shall remain
in all respects and for all purposes subject, subordinate and
junior to the lien of the Ohio National Mortgage, and to the
/G0"
a
rights and interest of the from time to time holder of the Ohio
National Mortgage, as fully and with the same effect as if the
Ohio National Mortgage had been duly executed, acknowledged
and recorded, and the indebtedness secured thereby had been
fully disbursed prior to the execution of the UDAG Mortgage.
2. Reliance by Lender. The parties are executing
this instrument in order to induce Lender to make the Loan,
and the parties further agree that making of the Loan shall
constitute conclusive reliance by Lenderu n this instrument
and the provisions hereof and the subordi;tion effected hereby.
3. Foreclosure. Subject to ection 16(a), (c) and
(i) through a ending (vii) of th UDAG Mortgage, in the
event action i taken to foreclose t lien of the Ohio National
Mortgage, eithe pursuant to a pow
of sale or by judicial
proceedings, or b deed in lieu of foreclosure, quit claim or
like action, Lende , or any subse vent purchaser, shall not
be required to reco nize the rig is of the City under the UDAG
Mortgage, and the ri hts of the City thereunder, shall, at the
sole election of and on not' a from the Lender, cease and
terminate upon acquis1 ion of title to or upon possession of
the Mortgaged Property L der, or its successors and assigns,
including any purchaser t foreclosure sale.
4. Successors d Assigns. This Agreement and each
and every covenan/ashall
eme t and other provision hereof shall
be binding upon tie ere
to and their heirs,
administrators, rtati es, successors and assigns,
including withouttion, each and every from time to time
holder of the UDAage or any other person having an
interest therein inu to the benefit of the Lender
and its successorsigns.
5. Ch6ice of Law. Thi Agreement is made and executed
under and in a respects is to be governed and construed by
the laws of t State where the Mor gaged Property are situate.
6. Captions and Headings. The captions and headings
of the vari us sections o. t is Agree nt are for convenience
only and a e not to be construed as coNengular
ng or limiting in
any way t scope or intent of the prons hereof. Whenever
the cont t requires or permits, the sar shall include
the plur 1, the plural shall include tand the
masculi e, feminine and neuter shall be freely interchangeable.
7. Notices. All notices provided for herein shall
be in writing an�ll be deemed to have been duly given(i) if
delivered personally (including delivery by messenger or other
courier), upon delivery, (ii) if by mail, when deposited in
the United States mail, registered or certified mail, postage
prepaid, (iii) if by telegraph communication, when delivered
-2-
1402G
to the telegraph company, charges prepaid, or (iv) if by telex,
telecopy, graphic scanning or other telegraphic communications
equipment when transmitted by such equipment, and in each case
addressed as follows:
If to the City:
If to Lender: The Ohio National Life Insurance
Company
Attn:
Telecopy No.
If to rrower: Harry A. Johnso , Jr.
Mid -City Hote Associaties
- Iowa Cit
c/o Pineap a Management Company
Park P1ac West Office Center
6465 Wa ata Boulevard, Suite 920
Minnea lis, Minnesota 55426-1725
Telec py No.
or addressed to any such art at such other address as such
party shall hereafter fur n's by thirty (30) days, prior written
notice to the other parties
IN WITNESS WH E OF, the parties hereto have each caused
this Agreement to be ex uted as of the date first above written.
THE CITY OF IOWA CITY, IOWA
Its
TH OHIO NATIONAL LIFE
I URANCE COMPANY
By
Its
Harry A. JoHinson, Jr.
d/b/a Mid -City Hotel
Associates - Iowa City
-3-
STATE OF IOWA )
ss.
COUNTY OF JOHNSON)
The foregoing instrument was acknowledged before me
this day of , 1988, by j the Mayor
of THE CITY OF IOWA CITY, IOWA, an Iowa mun.ici a corporation,
on behalf of said municipal corporation.
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STATE OF )
ss.
COUNTY OF )
The foreg ing ins ument was acknowledged before me
this _ day of 1988, by the
of THE OHP0 NATIONAL LIFE INSURANCE COMPANY, a
on behal of/said
STATE OF MINNESOTA)
ss.
COUNTY OF )
The foregoing in strum nt was acknowledged before me
this day f , 198 by HARRY A. JOHNSON, JR.,
d/b/a Mid -Cite Hotel Associates Iowa City.
THIS INSTILUMENT DRAFTED BY:
Dorsey & Whitney
2200 First Bank Place East
Minneapolis, Minnesota 55402
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RESOLUTION NO. 88-223
RESOLUTION AUTHORIZING SETTLEMENT OF QUIET TITLE
ACTION IN BLACK'S PARK ADDITION IN EXCHANGE FOR SEWER
EASEMENT.
WHEREAS, in 1916 and in 1921, plats were recorded to subdivide an area
immediately north of the present Park Road, to be known as Black's Park
Addition; and
WHEREAS, the platting instruments purported to establish streets in the
area, including extensions of Magowan and Hutchinson Avenues, and Gould
Street, and an east -west alley in Block J; and
WHEREAS, Hutchinson and Magowan Avenues have never been opened north of
Park Road, Gould Street is open only as far west as Ferson Avenue, and the
alley in Block J of Black's Park Addition has never been opened for public
use; and
WHEREAS, in 1941 and 1944 owners of properties surrounding and abutting
the above -referenced streets and alley in Black's Park Addition recorded
documents purporting to vacate those streets and the alley; and
WHEREAS, records in the City Assessor's and County Auditor's offices show
that the property included within the platted rights-of-way has been
vacated, and has been taxed to the abutting property owners; and
WHEREAS, Charles A. Skaugstad and Marilyn M. Skaugstad, husband and wife,
own the following -described property located in Iowa City, Johnson County,
Iowa, to -wit:
Commencing 120 feet East of the Southwest corner of
Black's Park Addition to Iowa City, Iowa, according to
the recorded plat thereof, thence North 170 feet, West
120 feet, North 210 feet, East 390 feet, South 380
feet, and then West 270 feet to the Point of
Beginning. Also commencing 60 feet North and 60 feet
West of the Northwest corner of Block J of said
Black's Park Addition, thence East 571 feet, thence
North 90 feet, thence West 571 feet, thence South 90
feet to the Point of Beginning. All in Section 4,
Township 79 North, Range 6 West of the 5th P.M.
(hereinafter "the Property"); and
WHEREAS, the Property includes (i) the alley located between Lots 1-4 and
Lots 7-10 in Block J of Black's Park Addition; (ii) that portion of
Hutchinson Avenue lying westerly of Lot 6 in said Block J; (iii) that
portion of Gould Street lying north of Lots 6 through 10 in said Block J;
and (iv) that portion of the West one-half of Magowan Avenue lying
immediately East of 'Lots 1 and 10 in said Block J; and
2
WHEREAS, the Skaugstads have commenced a quiet title action in the Iowa
District Court for Johnson County (Equity No. 51598) seeking to establish
clear title in the Property, specifically including the portions of the
platted streets and alley described above; and
WHEREAS, the area in question is developed with residences, and the City's
Public Works Department has determined that the City will have no need for
streets or the alley on the platted areas within the forseeable future;
and
WHEREAS, the Public Works Department has long-range plans to extend a
storm sewer north from Park Road through the Property; and
WHEREAS, the Skaugstads have agreed that, if the City does not oppose the
quiet title action, they will grant to the City a permanent 20 foot wide
storm sewer easement, and temporary construction easements, for the
proposed storm sewer, the exact location of which will be determined at
the time the storm sewer is installed; and
WHEREAS, because of the uncertainty of litigation, and the assurance that,
without further expense, the City will have the needed easements when the
storm sewer extension is to be installed, the City Council believes it to
be in the best interest of the City to dispose of the litigation by
agreement; and
WHEREAS, attached hereto is a form of Storm Sewer Easement which the
Skaugstads have executed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA,
THAT:
1. The Mayor and the City Clerk are hereby authorized and directed to
execute the Storm Sewer Easement on behalf of the City.
2. The City Attorney or an Assistant City Attorney is authorized to take
appropriate action to have the Easement recorded, and to dispose of
the pending lawsuit (Equity No. 51598) in accordance with the
,recitals and provisions of this Resolution.
/G- R7
N
Cl
It was moved by Ambrisco and seconded by Courtney the
Resolution be adopt- , an upon ro call there were:
AYES: NAYS: ABSENT:
X Ambrisco
X Balmer
X Courtney
R Horowitz
R Larson
x McDonald
Passed and approved this ist day of November , 1988,
OR
Approved as to Form
ATTEST:��u r 1) i gd
CITY CLERK Legal Department
STORM SEWER EASEMENT
THIS AGREEMENT, made and entered Into by and between Charles A. Skaugstad
and Marilyn M. Skaugstad, husband and wife, hereinafter referred to as
First Parties, and the City of Iowa City, Iowa, Second Party.
- - WITNESSETH:
For the sum of $1,00 plus other valuable consideration, the receipt of
- which is hereby acknowledged, First Parties hereby grant and convey to
Second Party a twenty foot wide easement for the purposes of excavating
for and the installation, replacement, maintenance and use of a storm
sewer line or pipe and all necessary appliances and fittings for use in
I
connection with the line (hereinafter referred to as the 'tine") that
Second Party may choose to install for conveying storm water, together
with a right of ingress to and egress from the line, over and across the
'. following -described property located in Iowa City, Johnson County, Iowa,
- I to wit:
That portion of the following -described bract located in Black's
Park Addition to Iowa City, Iowa, according to the recorded plat
thereof, commencing at the centerline of Magowan Avenue and the
.,. north right-of-way line of Park Road, thence West 90 feet,]
thence North 170 feet, thence West 60 feet, thence North 210
• - feet, thence East 150 feet, thence South 380 feet to the point
of beginning. Also commencing 60 feet North of the Northwest
f
)
- corner of Lot 9 In Block J of said Black's Park Addition, thence
North 90 feet, thence East 331 feet, thence South 90 feet,
thence West 331 feet to the point of beginning. All 1n Section
f
• 4, Township 79 North, Range 6 West of the Sth D.M. (hereinafter
I "the Property").
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The parties agree that at such time as Second Party installs the storm
sewer over the Property 1t will prepare and record In the office of the
!
- Johnson County Recorder a description of the location of the line, and
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thereafter, the permanent easement area shall be limited to the area so
described; provided, however, that the right of ingress and egress, and
the rights granted in paragraph 1, below, shall not be so limited.
First Parties further grant to Second Party;
1. The right to grade for the line for the full twenty foot width
thereof and, during installation, replacement or maintenance of said
line, to extend the cuts and fills for such grading into and on the
lands along and outside of said line to such extent as Second Party
may find reasonably necessary.
2. The right from time to time to trim and to cut down and clear away
any and all trees and brush on said easement area and to trim and to
cut down and clear away any trees on either side of the line which,
in the opinion of Second Party, may be a hazard to said line or may i
interfere with the exercise of Second Party's rights hereunder in any
manner.
7. Second Party shall Indemnify First Parties against any loss and
damage which shall be caused by the exercise of its rights hereunder,
or by any wrongful or negligent act or omission of Second Party, or
of Its agents or employees in the course of their employment.
0. Promptly after installation of the line or the repair thereof, Second
Party will, it Its expense, restore the premises to the original
condition, other than replacement of trees or shrubs over the lines,
Including replacement of mowed lawn areas with sod rather than
seeding.
5. First Parties reserve the right to use their property for purposes
which will not Interfere with Second Party's full enjoyment of the
rights hereby granted; provided that, after the storm sewer line has
been Installed, First Parties shall not erect or construct any
,
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building, fence or other structure, or drill or operate any well, or
construct any reservoir or other obstructions on said area, or
diminish or substantially add to the ground cover over said lines.
6. First Parties do hereby covenant with Second Party that they are
lawfully seized and possessed of the real estate above described
under the terms of an installment contract recorded in Book 122, page
181 of the Miscellaneous Records of the Johnson County, Iowa,
Recorder; and, subject to said Installment contract, that they have
good and lawful right to convey It, or any part thereof.
7. The provisions of this instrument shall inure to the benefit of and
bind the personal rapresentativas, successors and assigns of the j
respective parties hereto, and all covenants shalt apply to and run
with the land.
DATED this .4 AW— day of al/t/ice, 1988.
- a��-
C arias A. S uugatad a lyn M.Tuq tad i
CITY OF IOWA CITY, IOWA
BY: /amu'
[Join, McDona ayor
BY: Marl n K. K312 C lark ,
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
On this day of /1/.11. 4k 19 0l� , before me, the
undersignea, a Notary Public in and for the State o7—Iowa, personally
appeared Charles A. Skaugstad and Marilyn M. Skaugstad, husband and wife,
to me known to be the Identical persons named in and who executed the
within and foregoing instrument and acknowledged that they executed the
same as their voluntary act and d.
Hotary Pu c In for t o tate o owe
r
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STATE OF IOWA I
SS:
JOHNSON COUNTY I
On this 1St day o[ November �, 198$ before me,
ffDa ORT10 a Diary Pub c in and Tor the State
of Iowa, Personally appears John McDonald and Marian K. Karr, to me
Personally known, who being by me duly sworn, did say that they are the
Mayorand City Clerk, respectively, of said municipal corporation
executing the within and foregoing instrument; that the seal affixed
hereto Is the seal of said municipal corporation; that said instrument was
signed and sealed on behalf of said municipal corporation by authority of
the City Council of said municipal corporation, and that the said John
McDonald and Marian K. Karr acknowledged the execution of said instrument
to be the voluntary act and deed of said municipal corporation, by it and
by them voluntarily executed.
Notary Public in and for the State of Iowa
RESOLUTION NO. 88-224
RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTIES,
TEMPORARY CONSTRUCTION EASEMENTS, AND PERMANENT SEWER EASEMENTS
FOR THE BENTON STREET SANITARY SEWER INTERCEPTOR PROJECT, ALL IN
CONJUNCTION WITH IOWA CITY'S WASTEWATER FACILITIES IMPROVEMENTS
PROJECT.
WHEREAS, the City of Iowa City has undertaken a project to make major
improvements to its wastewater collection and treatment system, including
the construction of a new sanitary sewer interceptor to serve Iowa City
and University Heights, and accompanying drainage and street improvements,
which project is known as the Benton Street Sanitary Sewer Interceptor
Project; and
WHEREAS, this City Council has been advised and has determined that the
acquisition of certain properties and easements are necessary for the
construction of said public improvements and are for a necessary public
purpose; and
WHEREAS, the City has obtained an appraisal and review appraisal for each
of the said acquisitions; and
WHEREAS, City staff should be authorized to acquire said properties and
easements at the best overall price and cost to the City as reflected in
said appraisals.
NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA, that the City Manager or his designee is hereby
authorized and directed to negotiate the purchase of said properties and
easements for the Benton Street Sanitary Sewer Interceptor Project,
designated as Parcels BSI.01 through BSI.13, at the appraised values
indicated on the accompanying exhibit, or at such higher value as this
Council may hereafter approve.
AND BE IT FURTHER RESOLVED that in the event such properties and easements
cannot be acquired by negotiation at the appraised values indicated on the
accompanying exhibit, the City Attorney be and he is hereby authorized and
directed to initiate condemnation proceedings for the acquisition of such
properties or easements.
It was moved by Ambrisco and seconded by Balmer the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
X
Ambrisco
X
Balmer
X
Courtney
X
Horowitz
X
Larson
X
McDonald
m1�
/0 0??
B
Resolution No. 88-224
Page 2
i
Passed and approved this 1st day of
ATTEST:_U,e�v2 -P
CIT CLERK
November , 1988.
AWOL
A' o e as o Form
% 101- ry
Legal Department
BSI .01
BSI .02
BSI .03
BSI .04
BSI .05
BSI.06
BSI.07
BSI.08
BSI .09
BSI .10
BSI.11
BSI.12
BSI .13
ACQUISITIONS FOR BENTON STREET SANITARY SEWER INTERCEPTOR PROJECT
INTEREST TO APPRAISED VALUE OF
/ADDRESS I BE ACOUIRED ITNTEREST TO BE ACQUIR
Standard Station
Sinclair -Station
QuikTrip
Hartwig Motors
225 W. Benton
229 W. Benton
705 Giblin
701 Giblin
702 Giblin
707 Giblin
(Railroad)
(1st Mennonite Church)
Beverly Manor
$7,400.00
$5,800.00
$4,300.00
$5,400.00
$ 100.00
$ 260.00
$ 250.00
$ 750.00
$1,950.00
$ 100.00
$4,000.00
$7,750.00
$ 100.00
Fee.title
strip
Fee title.strip''
Fee title
strip
Fee title
strip '
Temporary
easement
Temporary
easement
Temporary
easement
Temporary
and permanent
easement
Temporary
and permanent
easement
Temporary
easement
Temporary
and permament
easement
Temporary
and permanent
easement
Temporary
easement
$7,400.00
$5,800.00
$4,300.00
$5,400.00
$ 100.00
$ 260.00
$ 250.00
$ 750.00
$1,950.00
$ 100.00
$4,000.00
$7,750.00
$ 100.00
ACQUISITIONS FOR BENTON STREET SANITARY SEWER INTERCEPTOR PROJECT
INTEREST TO
i
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BSI.01
rl
BSI.02
Sinclair Station
i�
800.00
BSI.03
Quik Trip
BSI.04
Hartwig Motors
BSI.05
225 W. Benton
ACQUISITIONS FOR BENTON STREET SANITARY SEWER INTERCEPTOR PROJECT
INTEREST TO
APPRAISED VALUE OF
Fee title
strip
BSI.01
Sta dard Station
BSI.02
Sinclair Station
800.00
BSI.03
Quik Trip
BSI.04
Hartwig Motors
BSI.05
225 W. Benton
BSI.06
229 W. Benton
BSI.07
705 Giblin
BSI.08
701 Giblin
BSI.09
702 Giblin
BSI.10
707 Giblin
BSI.11
(Railroad)
BSI.12
(1st. Mennonite ri
BSI.13
Beverly or
APPRAISED VALUE OF
Fee title
strip
$5,400
Fee title
strip
800.00
Fee title
strip
$4,300.00
Fee title
strip
$3,900.00
Temporary
easement
$ 100.00
Temporary
ease t
$ 260.00
mporary
asement
$ 250.00
Tem y
and permanent
easement
$ 750.00
Temporary
a permanent
easement
$1,950.00
Temporary
easeme
$ 100.00
Temporary
and permanen
easement
$4,000.00
Temporary
and permanent
eas ent
$7,750.00
Temporary
easement
$ 100.00
RESOLUTION NO. 88-225
RESOLUTION RESCINDING RESOLUTION NO. 87-239 AND PROVIDING FOR
AMENDMENTS TO THE SCHEDULE OF FEES FOR BEER PERMITS, WINE
PERMITS, AND LIQUOR LICENSES, RELATING TO DANCING PERMITS.
WHEREAS, the State of Iowa Beer and Liquor Control Commission establishes
the fees to be charged and collected by cities for processing beer permit,
wine permit, and liquor license applications; and
WHEREAS, the City of Iowa City did amend Chapter 5 to provide that the
amounts of the fees for beer permits, wine permits, and liquor licenses be
in the amount set by the State and be included in a Schedule of Fees for
Beer Permittees, Wine Permittees and Liquor Licensees, and this City
Council did pass an ordinance amending Chapter 5 of the Code of Ordinances
to that effect; and
WHEREAS, the City of Iowa City did also amend Chapter 5 to provide that
the amount of the fee for dancing permits for licensed premises be set by
resolution and included in the said Schedule of Fees; and
WHEREAS, the Council did adopt Resolution No. 87-239 establishing and
approving the said Schedule of Fees; and
WHEREAS, it has been proposed that the fee for dancing permits as set
forth in the Schedule of Fees be amended to provide for a minimum permit
fee, that a separate fee be established for dancing permits in conjunction
with Seasonal/Fourteen Day Licenses or Permits.
r ( NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE
I CITY OF IOWA CITY, IOWA, that prior City Council Resolution No. 87-239 be
and the same is hereby rescinded in its entirety.
AND BE IT FURTHER RESOLVED that the Schedule of Fees for Beer Permittees,
Wine Permittees, and Liquor Licensees, including revised fees for dancing
permits attached hereto and made a part hereof is hereby approved as to
form and content.
AND BE IT FURTHER RESOLVED THAT the City Clerk be and is hereby authorized
and directed, upon notification of a change by the State of Iowa in the
fee amounts for beer permits, wine permits, or liquor licenses, to
immediately amend the said Schedule of Fees to conform with such changes,
and to immediately commence charging the new fee amounts as prescribed by
the State.
/630
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Resolution No. 88-225
Page 2
It was moved by Balmer and seconded by Ambrisco
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Ambrisco
X Balmer
X Courtney
X Horowitz
X Larson
X McDonald
Passed and approved this 1st day of November
1988.
the
ATTEST: 7n�.�,�
CITY CLERK
Schedule of Fees
for
Beer Permittees, Wine Permittees, and Liquor Permittees
BEER PERMITS
Class B - $300/year
Class B Sunday Sales - $60/year (can be pro -rated)
Special Class C Beer -Wine - $585/year (effective 7/1/86)
Sunday Sales - $117/year (can be pro -rated) (effective 7/1/86)
Class C/ Class E/
Sunday Sales Sunday Sales Both depend on size of retail space
$ 75/$15 $575/15 (up to 1,500 sq. ft.)
$100/$20 $600/$20 (over 1,500 - 2,000 sq. ft.)
$200/$40 $700/40 (over 2,000 - 5,000 sq. ft.)
$300/$60 $800/$60 (over 5,000 sq. ft.)
Class D - $800/year
Class D Sunday Sales - $60/year (can be pro -rated)
LIQUOR LICENSES
Class A - $780/year (effective 7/1/86)
Class A Sunday Sales - $156/year (can be pro -rated) (effective 7/1/86)
Class A (less than 250 members) - $520/year (effective 7/1/86)
Class A Sunday Sales (less than 250 members) - $104/year (can be pro -rated)
(effective 7/1/86)
Class B - $1,690/year (effective 7/1/86)
Class B Sunday Sales - $338/year (can be pro -rated) (effective 7/1/86)
Class C - $1,690/year (effective 7/1/86)
Class C Sunday Sales - $338/year (can be pro -rated) (effective 7/1/86)
Class E - Pop. 10,000: 1500 sq. ft. $2500; 1501-2000 sq. ft. $3500;
2001-5000 sq. ft. $5000; 5000+ sq. ft. $7500
Class E Sunday Sales - Automatic
Class F - $2,190/year (effective 7/1/86)
Class F Sunday Sales - $338/year (can be pro -rated) (effective 7/1/86)
Class G - $1,085/year (effective 7/1/86)
Class G Sunday Sales - $117/year (can be pro -rated) (effective 7/1/86)
Class H - $2,190/year (effective 7/1/86)
Class H Sunday Sales - $338/year (can be pro -rated) (effective 7/1/86)
/6,30
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WINE PERMITS
Class B Wine Permit - 3500/year
Class B Wine Permit Sunday Sales - Holders automatically receive Sunday Sales
DANCING PERMITS
$25 in conjunction with either a Seasonal or Fourteen -Day License or Permit
or a temporary outdoor service area.
.50g per square foot of floor area to be used for dancing, with a minimum fee
of $100 per year, in conjunction with all other permits or licenses for
service of beer or liquor by the drink.
RESOLUTION NO. 88-226
RESOLUTION AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR IOWA COMMUNITY
ECONOMIC BETTERMENT ACCOUNT FUNDING, AND AUTHORIZING CITY
PARTICIPATION OF $50,000 FROM URBAN DEVELOPMENT ACTION GRANT
REPAYMENTS FOR A NEW MANUFACTURING FACILITY IN IOWA CITY.
WHEREAS, the Iowa Community Economic Betterment Account (CEBA) program
provides loans to cities to promote economic development and create long-
term employment opportunities; and
WHEREAS, the City is authorized to use repayments from Urban Development
Action Grants (UDAGs) for promotion of economic development; and
WHEREAS, a joint venture of Central States Can Company/Silgan Container
Corporation is seeking financial assistance of $350,000 to apply to land
and building costs for construction of a new facility in Iowa City which
is expected to cost approximately $3 million; and
WHEREAS, to promote the public health, safety, morals and general welfare
of its citizens, it is the policy of Iowa City to pursue industries that
are compatible with existing industries and the specific characteristics
of the Iowa City labor force, and that have growth potential; and
WHEREAS, a real estate developer is expected to do the construction and
lease the facilities to the joint venture; and
WHEREAS, the facility and work opportunities proposed by Central
States/Silgan are consistent with all of these policies, and
WHEREAS, the City will provide administrative costs for the CEBA program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA,
THAT:
1. The Mayor is authorized to sign and the City Clerk to attest the
application to the Iowa Department of Economic Development for a CEBA
forgivable loan for $300,000, such funds to, in turn, be loaned to
either the joint venture of Central States and Silgan, or a developer
which will construct facilities for the joint venture.
2. As part of the local participation necessary for a competitive CEBA
application, the City Council agrees to loan the joint venture or the
developer up to $50,000 from UDAG repayment funds, such amount to be
repaid in five years.
3. If the CEBA loan is approved, the City Manager and City Attorney are
authorized and directed to prepare and have executed appropriate
documentation for the loans. The City's loan may be subordinate to
other loans for the project.
loaf
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Resolution No. 88-226
Page 2
It was moved by Balmer and seconded by Horowitz the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Ambrisco
X Balmer
X Courtney
X Horowitz
X Larson
X McDonald
Passed and approved this 1st day of November 1988.
R
Approved as to Form
ATTEST: •/� /Z to zv r8
CITY LER�-K L� Departme t
City of Iowa City
MEMORANDUM
DATE: October 31, 1988
TO: City Council
FROM: Patt Cain, Economic Development Coordinator
RE: Economic Assistance for Central States Can Company/Silgan
Container Corporation
The City now has the opportunity to assist in the location of a major new
manufacturing facility in the Iowa City Industrial Park (formerly known as
BDI). After an extensive site selection process Central States Can
Company and Silgan Container Corporation have chosen Iowa City as their
preferred location, subject to several conditions yet to be completed (see
attached letter of intent).
THE COMPANIES
Central States Can Company (CSC) is one of the world's largest producers
of drawn, seamless steel and aluminum cans with easy opening tops for
processed foods. The company, started in 1955 with 68 employees, became a
division of Van Dorn in 1957 and began concentrating on development and
manufacture of aluminum cans. Since that time, the company has developed
a number of other innovative products. With headquarters in Massillon,
Ohio, CSC now employs 700 and is proud of its employee relations and
profit-sharing programs.
Since the turn of the century, the Can Division of Carnation Company had
manufactured metal containers. On September 1, 1987, the division was
sold to private investors and the name has been changed to Silgan Con-
tainers Corporation. Silgan has its headquarters in Burbank, California,
and operates thirteen manufacturing plants in nine states, including one
in Fort Dodge, Iowa.
THE PROJECT
CSC and Silgan are forming a joint venture company to establish a manufac-
turing facility for aluminum cans and lids. The can manufacturing system
will use a new coating process, called electrophoretic coat (electro -coat
or E -coat). CSC and Alcoa Aluminum, which holds the patent for the
process, have a previous joint technical agreement for the commercializa-
tion of the first E -coat processing line.
The site selected for the first plant is a 19.1 acre tract of land in the
Iowa City Industrial Park. The venture proposes to lease a 100,000 square
foot plant, constructed to its specifications, for a period of 10 years
with a 5 year option. The production facility is expected to cost
approximately $3 million. It will contain E7 to E8 million in equipment
/0
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Page 2
provided by Alcoa; this equipment will become property of the venture. In
addition, the venture companies will contribute $3.7 million for lid
manufacturing equipment and support equipment.
The venture expects to employ 110 persons after a period of three years,
with 100 persons employed after two years. There is also room on the site
for possible expansion in the future.
ECONOMIC ASSISTANCE
Start-up costs associated with this manufacturing facility are very high,
and the companies consider favorable local and state enhancements essen-
tial to success. Several states have been competing for location of this
plant.
In this area local assistance confirmed to date includes a negotiated land
price, a low interest loan and reduced electricity rates for three years
from Iowa -Illinois Gas and Electric Company, and a competitive lease rate
for a building from Michael Development Company of Minneapolis (through
Mid-America Construction in Iowa City). Jobs training funds through the
Iowa New Jobs Program will also be sought.
The City is requested to take three actions:
1. Submit an application for a $300,000 forgivable loan from the State's
Community Economic Development Betterment Account (CERA).
2. Authorize a $50,000 low interest loan (3% interest rate to be repaid
in 5 years) to apply to lower the lease rate of the building. This
will contribute to the "local participation" required for CEBA
applications. The loan would be funded from the City's UDAG repay-
ment monies.
3. Authorize submission of an application to the Iowa Department of
Transportation Rail Assistance Program for funding necessary to
construct a rail spur to the building. If approved, the grant would
pay 80% of the construction costs.
Adoption of the two resolutions on the agenda (for the CEBA application
and the rail assistance application) will accomplish these steps. City
staff will then continue to work with the venture partners and with ICAD
to complete actions necessary for location of the facility.
/G3/
9
j �CT U '88.09:27 FL Pin 234 HOTELEC�OPY SITZ NfiPONOiI-elS-"e46-4808 9496 pL.2
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CENTRAL STATES CAN CO.
rel, Le TM'TACIT, a. 9.
Peer o"r,ce eoi 44e
' r" MASSILLOM, OHIO 440Y
4601141 M.OMA„T October 260 1988
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Mr, Ray Huston
Presidant
IOWA CITY AREA DEVELOPMENT OROUP, INC.
325 B. Washington, Suite too
P. 0. Box 2567
Iowa City, IA 52244
Dear Mr. Mustont
Central States and Silgan Containers are pleased to $*loot the
Industrial Park in Iowa city, Iowa, for its new eleatro+coat
oan making plant. Your people have been very helpful in making
this selection and we are looking forward to working with you
to complete this project.
We plan to make a formal announcement of the plant and the Iowa
City site selection after the conditions set forth below have
been met.
The purpose of thin latter is to set forth the intent of Van
Dorn Company by its Central gtates Can Co, Division ("Van
Dorn") and Silgan Containers Corp. ("Si1San") to jointly enter
into an agreement for the Issas of a manufacturing building to
be built to Van Dornts and ASSgan's specifications on .
approximately 19.1 acres of land located in the Business
Development Industrial Park, lows City, Sows, as more
particularly oat forth on the attached Exhibit A.
This Issas to subject to the approval of the Board of Director$
of both Van Dorn and Siigsn, the negotiation and execution of a
definitive lease agreement, obtaining all necessary
environmental and sewage discharge approvals and permits,
Obtaining satisfactory otatt and local funding, obtaining rail
access to property, and other approvals and waivers as may be
required or reasonably requested by Van Dorn and Silgan
and assuming all investigations and reviews have been oompleted
to the Satisfaction of Van Dorn and Silgan,
Nt0 S31biS 1UNIN30 W08A 4v101 88, 42 400
/63/
I
OCT Z8 88 0^Z+
9: 7 FL NA 2234 HQ TELECOPY RITZ NAPLES
` "• '•�" •�. wrywninu,cno icy N01 i-818-248-4808
4r. Ray Huston
October 26, 1988
Page ^2=
4496 Yu:,3
Assuming that the above conditions are met, the parties agree
to exert all reasonable efforts to execute the agreement
contemplated by this letter within sixty (60) days from the
date hereto.
Please acknowledge your agreement to the above by signing and
returning the eftoloaed copy of this letter to my attention.
Sincerely,
41
O.
Smart R. 8. Aueburn
President President
Central states Can Co, 933pn Containers Corp.
' cal' .. :.,
The foregoing in hereby agreed to
(Name of signing Entity)
By:
Name
Title
Dats1
NVO S31hd1S IVN1N30 W08A 80101 Bel 42 1.O x/
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'All IAS CO. V/.
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BUSINESS DEVELOPMENT INC. INDUSTRIAL PARK—IOWA CITY, ICWA.J a
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RESOLUTION NO. 88-227
RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION TO
THE IOWA DEPARTMENT OF TRANSPORTATION RAIL ASSISTANCE
PROGRAM.
WHEREAS, the City of Iowa City endorses the development which is proposed
for the BDI Industrial Park; and
WHEREAS, an immediate, non -speculative opportunity exists for the creation
of 100 jobs by the Central States Can Company/Silgan Container Corp.; and
WHEREAS, an immediate commitment of State funds for railway improvements
is essential for the success of the proposed project; and
WHEREAS, denial of State funds for railway improvements will jeopardize
the proposed development project; and
WHEREAS, the Michael Development Company (project developer) has stated
that they will own the new railway improvement, will adequately maintain
it for a minimum of ten years, and will not dismantle it for any reason
without written permission from the Iowa Department of Transportation;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY:
1. That JCCOG Transportation Planning Division staff is authorized to
prepare an application to the Iowa Department of Transportation Rail
Assistance Program.
2. That said application is to be filed with the Iowa Department of
Transportation under the City Manager's signature.
3. That JCCOG Transportation Planning Division staff is authorized to
file any additional information deemed necessary by the Iowa
Department of Transportation in conjunction with said application.
It was moved by Balmerand seconded by Ambrisco the
Resolution be adopte , 5d upon rolI call there were:
AYES: NAYS: ABSENT:
Ambrisco
X Balmer
X_ Courtney
_ Horowitz
_ Larson
X McDonald
Passed and approved this 1st day of November 1988.
Ls..
kOR
Approved as to Form
ATTEST: 77t&4..,..J ezJ f�
CITY CLERK Leg Department
9