HomeMy WebLinkAbout1987-10-21 Info Packet of 10/10City of Iowa city
MEMORANDUM
DATE: October 10, 1986
TO: City Council
FROM: City Manager
RE: Information in Friday's Packet
Informal agendas and meeting schedule.
Memoranda from the City Manager:
a. Council Discussion Session - October 14
b. RISE Grant Application for Local Road/Scott Boulevard/Heinz Road
Project
Copy of memorandum from Mayor Ambrisco to chairpersons of boards and commi
regarding annual meeting on October 30, 1986.
Memorandum from the Department of Public Works regarding Gilbert Street Br
at Ralston Creek.
Memo from City Mgr. re Economic Development Loan Pool Proposal
City of Iowa City
MEMORANDUM
DATE: October 10, 1986
TO: City Council
FROM: City Manager
RE: Informal Agendas and Meeting Schedule
October 14 1986 Tuesda
6:00 P.M. - Goal Setting Session - Holiday Inn, Robert Lucas Room
October 20 1986 Monda
7:00 - 9:00 P.M. Council Chambers
7:00 P.M. - Review zoning matters
7:30 P.M. - Plaza Minipark - Design Issues
8:00 P.M. - Council time, Council agenda, Council committee reports
8:30 P.M. - Consider appointments to boards and commissions
October 21, 1986 Tuesday
7:30 P.M. - Regular Council Meeting - Council Chambers
October 30, 1986 7hursdav
3:30 P.M. - Meeting of City Council with Chairpersons of Boards and
Commissions - Highlander Inn
6:30 P.M. - Dinner - Highlander Inn
PENDING LIST
Leasing of Airport Land for Commercial Use
Newspaper Vending Machines
Stormwater Management Ordinance Review
Mesquakie Park Development and Name Change
Appointments to Riverfront Commission and Civil Service Commission -
November 18, 1986
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City of Iowa City
MEMORANDUM
DATE: October 8, 1986
TO: City Council
FROM: City Manager
RV Council Discussion Session - October 14
The enclosed agenda represents the items I would like to discuss at our
October 14 dinner meeting. It is not written in any order of preference,
and the Council should feel free to amend the agenda as you see fit. I
intend to have Rosemary and Dale present at the meeting to assist in the
discussion.
cc: Dale Helling
Rosemary Vitosh A"4111=,
MM
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COUNCIL DISCUSSION SESSION
October 14, 1986
6:00 P.M.
Holiday Inn
Robert Lucas Room
ITEMS FOR DISCUSSION
(Not in Priority Order)
1. Economic Development - City Role
- Discuss attachment
- Discuss Economic Development Loan Pool
2. Budget Issues
- Adequacy of fund balances
- Contingency funds
- Long-range planning
5 -year projections - operating
Multi-year operating budgets
5 -year capital improvement program
Costs associated with future growth
- Annual property tax levy
6% policy
- G.O. Bonded indebtedness - impact upon tax levy
- Coping with loss of federal monies
3. Building Program
- Discuss HLM Project proposal
- My concerns
- expensive project in light of our overall financial capability and
other service needs
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- HLM has advised that the project would be difficult to phase
construction
- Basic space plan looks good, but overall project scope/cost more
than we can afford.
- Would the Council consider pursuit of other alternate plans using basic
space plan, but phased, with other options considered?
4. Consolidation of Boards and Commissions
- What does the Council hope to accomplish with respect to consolidating
responsibilities?
- We are considering consolidation at time when some boards want to expand
their responsibilities.
5. Downtown Development
- Liquor establishments
- Discuss number of establishments and impact on creating/maintaining mixed
use commercial character of downtown
- Affect of liquor establishments on police services
6. Miscellaneous
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- Update Scott Boulevard project
- What to do about sculpture gift from First National Bank?
- Waste -to -Energy Project - update
- Bicycle Safety Program - Consider at budget time
- Gun Control - draft a compilation of information/ideas from other cities
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ECONOMIC DEVELOPMENT POLICY
Current City Commitment
Staff
- Economic Development Planner
Variety of staff involved
other planners
engineers
administrative
Capital Projects
- Routine street reconstruction and utility system maintenance
- New sewer reconstruction and new treatment plant
- Scott Boulevard
Service Program
- Redevelopment efforts in downtown
- Rehabilitation and redevelopment in neighborhoods
- Utility systems
- Transportation - streets, transit
City Participation
- First Capitol Development
- B.D.I.
- Chamber of Commerce
City's Role in Economic Development
- Financial
- Informational
- Regulatory
- Facilitating
Issues/Policy Questions
- City's role in economic development primarily "cooperative", focused
outside of City organization.
- Public does not understand contribution to economic development in
form of routine services and projects; need better information efforts
Future
- Current involvement - "remain as is"
- Improve upon Cedar Rapids/Iowa City economic development relationship
without compromise of our own development desires
such as: - share information
- corridor planning
- support expanded Cedar Rapids airport
- informal communication between the two cities
- Discuss role of County Government in economic development
- Lessen our image as an "over -regulator" and "under facilitator"
- Develop private sources of economic development financing - may
involve some public participation
- Develop policies to encourage/incentive for current industries to
expand
- Create more community awareness of the City's involvement in
economic development
Budget Implications
- No substantial changes anticipated at this time and current funding
commitments likely to continue
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City of Iowa City
MEMORANDUM
Date: October 10, 1986
To: City Council
From: City Manager
Re: RISE Grant Application for Local Road/Scott Blvd./Heinz Road Project
After weeks of negotiation and study, Iowa DOT has made a preliminary ranking
of RISE Local Development Projects that were received in the latest funding
cycle. Our project was ranked 24th out of 49 applications and is not likely
to receive funding in its existing form. I have instructed the staff to make
modifications and resubmit the application on October 9. The major problems
cited with our present proposal are:
1. Lack of job creation. Specific job creation is the top criteria for
Winding, amaw the applications ranked above ours include this
element. Our application is based solely on speculative job creation.
2. Expense. Our project is very expensive compared to most of the others.
anojects Iowa DOT has funded are in the $50,000-;100,000 range. The
cost estimate for all three phases of our project is $2.4 million.
3. Amount of local fundin . The average amount of local funding for the 49
app ca ons rete ve is around 50%. Our most recent proposal was for
31% local funding (up from our original proposal of 25%).
A majority of the projects received by Iowa DOT, including ours, were from
municipalities. By law Iowa DOT must fund a certain number of projects in
municipalities, a certain number on county facilities, and a certain number
on State facilities; this may work to our disadvantage on the Scott Boulevard
portion of our project but to our advantage on the Local Road portion.
The staff has been contacted by Iowa DOT and they have given direction for
possible modifications. I will keep you apprised of any developments.
cc: Rosemary Vitosh
Don Schmeiser
Dale Helling
Chuck Schmadeke
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City of Iowa City
MEMORANDUM
DATE: October 9, 1986
TO: Chairpersons, Boards and Commissions
FROM: Mayor William Ambrisco
RE: Annual Meeting of City Council and Chairpersons of Boards/Commissions
The annual meeting of the City Council members and chairpersons of all
boards and commissions is scheduled for Thursday, October 30, 1986, at
3:30 P.M., at the Highlander Inn.
Each board/commissions chairperson should be prepared to give a presenta-
tion not to exceed five minutes on the accomplishments of the board/
commission during the past year, problem areas for the board/commission,
and efforts being made during this next year.
A dinner is planned for 6:30 P.M. Please contact Lorraine Saeger (356-5010)
concerning your attendance at this meeting/dinner no later than October 24,
1986.
cc: City Council
City Manager
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City of Iowa City
MEMORANDUM
DATE: October 10, 1986
To: City Manager and City Council
FROM: Denny Gannon LG
RE: Gilbert Street Bridge at Ralston Creek
The Bridge Deck Repair Project (Phase I) involves the deck
repair and other miscellaneous repairs to three (3) bridges:
the Dodge Street bridge spanning the Heartland Rail Corp.
tracks, the Gilbert Street bridge spanning Ralston Creek,
and ,the Burlington Street bridge spanning Ralston Creek.
Construction on the Dodge Street bridge is complete and the
structure is now open to traffic.
On Monday, October 13, 1986, Cramer Brothers Construction
Co., the contractor for the Bridge Deck Repair Project
(Phase I), will begin work on the Gilbert Street bridge with
regards to the correction of the erosion problem adjacent to
and under the south abutment. (See attached memo dated
September 19, 1986.) In order to complete this work, the
west lane and west sidewalk, on and adjacent to the bridge,
must be closed to vehicular and pedestrian traffic
respectively. It is expected this work will be completed
within 1 1/2 weeks, weather permitting.
When surveying the extent of the problem with the contractor
Thursday, October 9, it was found that the actual limits of
erosion has now magnified and undermined the south approach
pavement on Gilbert Street and the driveway apron and
sidewalk adjacent to Culligan, which is located on the
southeast corner of the bridge. This ,is not safe for
motorists and pedestrians as the pavement, driveway, or
sidewalk could fail at any time. Therefore, I recommend
that the undermined concrete be removed, properly
backfilled, and replaced as necessary at this time. (This
work was intended to be completed next Spring along with the
deck repair.) In order to complete this work, it will be
necessary to reduce the street from four (4) lanes to two
(2) lanes as per the approved plans; it is not anticipated
at this time that Gilbert Street will require closing.
Weather permitting, the work proposed to be completed this
Fall on the Gilbert Street bridge is expected to be
completed by mid-November.
The Gilbert Street bridge deck will be repaired next Spring;
this work is expected to be completed in three (3) weeks,
weather permitting. Again, the deck repair will require the
reduction of four (4) lanes to two (2) lanes on and adjacent
to the bridge.
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City of Iowa City
MEMORANDUM
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DATE: September 19, 1986
TO: City Manager and City Council
FROM: Denny Gannon L6
RE:
Gilbert Street Bridge at Ralston Creek
The Bridge Deck Repair Project (Phase I) was let and
awarded to Cramer Brothers Construction Co. in August of
this year. The project involves the deck repair and
other miscellaneous repairs to three (3) bridges: the
Dodge Street bridge spanning the Heartland Rail Corp.
tracks, the Gilbert Street bridge spanning Ralston Creek,
and the Burlington Street bridge spanning Ralston Creek.
The specifications require work on the Dodge Street
bridge to be completed this year (September 2 -October 17)
and work on the Gilbert and Burlington Street bridges to
be completed next year (April 1 -July 10). Weather
permitting, it appears that the repairs to the Dodge
Street bridge will be completed and the bridge opened to
traffic by late September/early October of this year.
The contractor has requested permission to proceed with
some of the repair work on the Gilbert Street bridge
after work on the Dodge Street bridge is completed and
the structure is opened to traffic. • The repair work
requested to be completed this year is the correction of
the erosion problem adjacent to and under the south
abutment. In order to complete this work, the west lane
and west sidewalk on and adjacent to the bridge must be
closed to vehicular and pedestrian traffic respectively.
Weather permitting, this work is anticipated to be
completed within 2-3 weeks. Public Works/Engineering
recommends this portion of the repair work be completed
this year. Permission will be granted to the contractor
to complete said repair work unless City Council desires
to delay it until next spring.
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City of lows City
MEMORANDUM
Date: October 3, 1986
To: City Council
From: City Manager
Re: Economic Development Loan Pool Proposal
In 1989, the City will begin receiving repayment of federal funds from the
UDAG hotel project. It is estimated that the City will receive approximately
$267,000 per year under the repayment schedule, for a period of 20 years.
The federal government allows communities who have used the UDAG program to
apply the repayment funds to projects that might normally be funded under
UDAG guidelines. Specific emphasis has been provided in the federal govern-
ment regulations which encourages the use of these funds for additional
economic development initiatives and job creation opportunities. In an
effort to place the UDAG repayment schedule to productive use with a policy
of city wide economic development, an economic development loan pool pro ram
is proposed. This would be a new source of financing for industrial develop-
ment and would be created through the cooperation of area banks, Iowa -Illi-
nois Gas & Electric, and the City government. The basic elements of the loan
pool program are to provide reduced interest rates through the leveraging of
public and private sources to fund manufacturing and industrial projects that
create permanent full-time employment for Iowa City.
Under the loan pool concept, each participating bank would pledge $200,000
annually as its share of the loan pool. The City would provide $250,000
annually as its share of the loan pool from the UDAG repayment and
Iowa -Illinois would pledge $50,000 annually.
While all banks in Iowa City would be invited to participate, I have assumed
that the four major commercial banks would be the most interested and thereby
through the use of the City's UDAG funds, bank funds and those of Iowa -Illi-
nois, we would be able to create an annual economic development loan pool of
$1.1 million. The financing of projects would be based on a 70% lending
institution, 25% City, and 5% Iowa -Illinois financial participation.
I have discussed this proposal with three major commercial lending institu-
tions and Iowa -Illinois, and they have indicated an interest and support for
the concept, pending the approval by their respective boards and/or executive
committee. As a matter of illustration, the following represents how the
program would work. Also attached is a draft agreement for all parties
participating in the loan pool concept.
Example: Project Proposal - $300,000
$210,000 Loan from Banks A & B
75,000 Loan from City
15,000 Loan from Iowa -Illinois
$300,000
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Terms
$210,000 at market rate interest for 10 years.
$75,000 at 2% for years 1 and 2, 0% thereafter.
$15,000 at 0% for 10 years.
Interest rate (schedule) due to leveraged financing (assumed market
rate of 10%):
1st year 7.7%
2nd year 7.7%
3rd year & thereafter 7.4%
The City's share of loan repayments and UDAG repayments would be paid into an
Economic Development Fund for future financing of the Economic Development
Loan Pool, assuming continuing participation on the part of our local banks
and Iowa -Illinois Gas and Electric Company. Those funds created by the
City's interest charges would be used as part of our contribution, not to
exceed $40,000 annually, to First Capital Development, soon to be called Iowa
City Area Development Group. It is estimated that the City's interest
charges and the excess UDAG repayment could amount to ;22,000 annually in the
initial years of the program. Interest income beyond the ;40,000 contribu-
tion would be applied as a General Fund revenue.
It is anticipated that a means of financing the City's initial commitments,
prior toreceiptof the UDAG repayment, will need to be explored if we choose
to proceed immediately.
If this concept meets with Council approval, it would be my intent to arrange
a meeting of all parties and develop a final recommendation.
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ECONOMIC DEVELOPMENT LOAN POOL
THIS AGREEMENT, dated day of 1986, by
and between the City of Iowa City, an Iowa Municipal Corporation, (hereinafter
referred to as "City"), Iowa -Illinois Gas and Electric Company (hereinafter
referred to as "Iowa -Illinois"), and the following participating financial in-
stitutions (hereinafter referred to as "Lending Institutions"):
as follows:
POLICY
It shall be the policy of the participants in the Economic Development
Loan Pool that the following guidelines will direct their review, approval and
participation in the proposed loan pool.
1. To promote the growth, expansion and job development potential of Iowa
City's industrial base.
2. To encourage the development and location of new industries in Iowa
City.
3. Expand job opportunities in Iowa City with the specific purpose of
the Economic Development Loan Pool to provide financing of industries which
create permanent full-time employment, with preference given to projects creating
new manufacturing/industrial jobs. Projects creating service jobs, whereby
the products provided are intended to serve a regional (multi -state) or national
market will also be considered.
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4. To cooperate with Iowa City banks, Iowa -Illinois Gas and Electric Company,
and the City of Iowa City to stimulate economic growth within the City.
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NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Purposes. The purposes of the loan pool established by this Agreement
are to improve the economic viability of Iowa City industries and create new
permanent full-time employment by providing incentives to stimulate investment
in Iowa City through below market interest rate loans to qualified borrowers
for specified eligible projects. This Agreement is designed and intended to
promote employment opportunities and to preserve and enhance the tax base of
the City.
The loan pool would provide incentives and financial assistance in the
creation of new jobs in the manufacturing sector which are likely to in turn
generate additional employment in the local economy.
Jobs created must be totally new or one which has been vacant for at least
the previous 12 months; jobs must be full-time and not seasonal; jobs must be
those with wage scales meeting federal definition of low -moderate income persons;
and jobs must be within the City of Iowa City.
2. Term. The term of this Agreement shall be until
unless extended by mutual agreement.
3. Eligible Area. The corporate limits of the City of Iowa City, Iowa.
4. Eligible Improvements. Under this Agreement, loans shall be made to
tenants or owners of structures or businesses presently within or moving within
the City of Iowa City and only for the following purposes:
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a. Renovation of industrial or mixed-use buildings for the purpose
of expanding existing industries and creating new industrial tax base.
b. Renovation, rehabilitation or reuse of existing buildings for
j industrial or mixed uses allowed by zoning and otherwise compatible with nearby
land uses and activities.
c. New construction of industrial or mixed-use buildings.
d. Building acquisition, provided that the improvements are equal to
or greater than the purchase price and/or existing debt upon such building, in
connection with a rehabilitation project or the expansion of an existing industry.
e. Land acquisition in connection with a rehabilitation project,
expansion of an existing industry or new connection.
f. Private developer share of certain semi-public or necessary private
improvements, such as parking and utilities.
5. Ineligible Proiects or Activities. The following shall be ineligible
for any loan hereunder:
a. Any expenses incurred prior to written notification of approval
of a loan by the Loan Pool Committee under this Agreement, provided that this shall
not preclude retirement of existing mortgage debt as authorized hereunder.
b. Expenditures incurred with regard to trade fixtures and furniture.
c. Simple redecorating.
d. Buildings for residential purposes. -
e. No loan from the loan pool shall be made to any person, firm or
corporation where a conflict of interest would occur as a result of such loan.
A determination of the existence of such a conflict of interest shall be made
by the Loan Pool Committee established under paragraph 11 of this Agreement.
6. Commitment of Funds. Each Lending Institution does hereby agree to
pledge $200,000 annually for the purposes,contained in this Agreement, the
City agrees to Pledge $250,000 annually from its UDAG repayment program, and
Iowa -Illinois agrees to pledge $50,000 annually. Such amounts shall not be
decreased but may be increased by mutual agreement of all the Lending Institu-
tions, the City, and Iowa -Illinois.
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7. Loan Terms. All loans granted under this Agreement shall be subject
to the following terms and conditions:
a. The minimum amount of any loan granted hereunder shall be $
b. All loans shall be secured to the total amount of the loan by a
first mortgage on the real estate not exceeding 10 years, and/or other security
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may be provided as required by the Loan Pool Committee. i
c. No loan shall be made under this Agreement to any party who does not
meet the borrowing standards of the servicing agency administering the loan.
d. The maximum loan -to -value ratio shall be 75 percent of the lesser of the
cost or appraisal, based on an appraisal acceptable to the Loan Pool Committee.
e. Loan origination fees, points or any other service charges shall not
be charged on the City's 25 percent or Iowa -Illinois 5 percent portion of the
loan.
f. No more than 50 percent of the loan proceeds shall be used for land
acquisition or retirement of existing mortgage debt.
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g. All loan documents executed pursuant to this Agreement shall be on
forms provided by the servicing agency.
h. All loans approved under this Agreement shall be financed 70 percent
by the Lending Institutions, 25 percent by the City, and 5 percent by Iowa -Illinois.
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Any amount loaned in excess of the pledge obligation of a Lending Institution
shall be based on a separate agreement between the borrower and the lender or
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lenders and shall be secured by a second lien. All payments of principle on
each such loan shall be paid over to each of the Lending Institutions, the City,
and Iowa -Illinois on a pro rata basis in accordance with their contribution to
the loan.
i. Each loan shall be payable in equal installments with payments due on
the first day of each month, or as otherwise may be determined by the Loan Pool
Committee
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j. The interest rate for the lending institution share of the loan
shall be a current market rate, defined as Iowa -Illinois interest
rate shall be at 0 percent, and the City's interest rate shall be 2 percent
for years 1 and 2 and 0 percent thereafter.
k. Payments of interest shall be made to the Lending Institutions and
the City in accordance with their contribution to the loan and the interest rate
allocated to their portion of the loan.
1. No loan shall be subject to any penalty for prepayment.
m. The proceeds of each loan shall be paid in the name of the borrower
by the servicing agency and shall constitute a loan advance in the borrower's
name. The servicing agency shall not disburse any of the loan proceeds to
any contractor, subcontractor or materialman until it has satisfactory written
evidence that all work has been completed satisfactorily and that all materialmen,
laborers and subcontractors have been paid or have delivered releases of their
rights to assert mechanic's or any other liens upon the property.
B. Energy Audit -Code Compliance.
a. Any party securing a loan hereunder shall agree to perform or have
performed an energy audit of any building or buildings to be rehabilitated
with loan funds. Such audit shall document at least the present level of energy
conservation and the most cost-effective steps, both capital and managerial, for
increasing overall efficiency. The terms of each loan granted under this
Agreement shall contain a requirement that the building to be rehabilitated
shall incorporate the results of the energy audit conducted under this paragraph.
b. Any work performed with loan pool funds obtained hereunder shall
be in full and complete compliance with all applicable laws, ordinances, rules
and regulations of the United States, State of Iowa, and the City of Iowa City.
Copies of any inspection report pertaining to any such work or to the property upon
which it has been or is to be performed may be obtained by the Lending Institutions
and the City.
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9. Servicing Agency. The servicing agency that shall process and
administer a loan made hereunder shall be one of the Lending Institutions which
is selected by the recipient of a loan. The servicing agency shall process
and administer each such loan in the manner which is usual and customary with
regard to other loans which it makes under similar circumstances.
10. Application Procedure.
a. Prior to submission of an application for a loan under this Agree-
ment, the applicant shall meet with appropriate staff members of the City to determine
if the proposed improvement will meet City requirements with respect to building,
zoning and other applicable laws, ordinances, rules and regulations. The appli-
cant shall be responsible for complying with all City requirements and procedures
as they apply to the project. Applicants may obtain application forms for a loan
under this Agreement from the City Manager's office.
b. Loan applications shall be processed after complete submission of
the following to the City:
(1) Completed application forms, including narrative explaining
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the intent, scope and anticipated time schedule of the proposed project or
activity, and
(2) Six copies of a plot plan and other design drawings sufficient
to accurately portray the work which is proposed.
c. Following receipt of a complete and full application complying
with the foregoing requirements, the City shall call a meeting of the Economic
Development Review Committee of the City. This Committee shall consist of members
appointed by the City Manager. The Committee shall meet to determine if the
project or activity is eligible, by applying the following criteria:
(1) Compliance or ability to comply with applicable building,
zoning and related codes and ordinances.
(2) Compliance with adopted elements of the City Comprehensive
Plan, as applicable.
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(3) Compatibility with existing or planned adjacent and nearby
land uses.
(4) Conformance to the list of eligible projects or activities.
d. Applicants shall be notified in writing of the project's eligibility
status within 10 calendar days of the complete application submission.
e. Once an application has been determined to be eligible, the applicant
shall submit all required information to the servicing agency. Such information
shall be delivered by the servicing agency to the members of the Loan Pool
Committee for review and analysis.
f. The loan application shall then be reviewed by the Loan Pool Com-
mittee. All loan applications shall require the approval of the Loan Pool Com-
mittee whose decision shall be final.
g. Administrative procedures concerning the application, processing
and administration of loans under the loan pool program and this Agreement,
not specifically set forth in the provisions of this Agreement, shall be
subsequently established and agreed upon by the parties.
11. Loan Pool Committee.
a. A Loan Pool Committee shall be created consisting of one
representative of each of the participating Lending Institutions, two represen-
tatives of the City, and one from Iowa -Illinois.
b. The purpose of this Committee shall be to make decisions regarding
the approval or rejection of applications for loans from the loan pool.
c. At least one member of the Committee representing the City and
members of the Committee from a majority of the Lending Institutions must be
present to constitute a quorum. A quorum must be present to constitute a valid
vote on the approval of any loan. Also, in order to constitute a valid vote on
the approval of any loan, said vote shall be in the affirmative by at least one
memberrepresenting the City and all of those members from the Lending Institu-
tions that will participate in the loan. Those Lending Institutions which do
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participate in a loan may agree to share in the 70 percent portion of the loan
in any manner they choose. No loan applications may be approved without the
! approval of the Committee. The criteria used by the Committee in making decisions
on loan applications shall be those normally utilized by the participating Lending
Institutions for similar, non -subsidized loans. All actions of the Committee
other than loan approval shall require the affirmative vote of a majority of a
quorum of the Committee.
12. Status of Citv. The parties mutually agree that all actions of the
City pursuant to this Agreement shall be as an independent contracting party !
and not as an agent of any Lending Institution. I f'
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