HomeMy WebLinkAbout1985-07-16 Info PacketS
City of Iowa City
MEMORANDUM
Date: July 12, 1985
To: City Council
From: City Manager
Re: Market Reconnaissance and Analysis for Parcel 64-1a
Enclosed is the technical memorandum which was prepared by Zuchelli, Hunter &
Associates for Parcel 64-1a. The options which appear in the first few pages
are followed by an executive summary. The report analyzes the commercial,
office, hotel, retail and residential markets.
It is the conclusion of the staff that the strength of these markets, either
individually or even collectively, is not significant to warrant marketing of
64-1a. While the City certainly would be able to produce a building of some
nature on the site at this time, I do not believe that it would be wise to
undertake a project for which there does not currently seem to be sufficient
economic support and would not produce a project of either the magnitude or
character which would be most advantageous to the City.
As we have discussed, the successful completion of this site is important to
the long-term success of the central business district and should be a
significant project both in size and quality. Particularly with the
amenities which are desired, I do not believe that the market strength is
sufficient to support such facilities.
Therefore, it is recommended that the Council postpone the marketing of 64-1a
until such time it is clear that there is increased market strength or until
such time as one major developer displays a very strong interest in a project
which will be compatible with the long-term interest of the City.
If the Council does not concur with this recommendation and wishes to proceed
with development of the site, I will schedule a time for representatives of
Zuchelli, Hunter & Associates to meet with the City Council.
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Technical Memorandum
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MARKET RECONNAISSANCE & ANALYSIS
FOR PARCEL 64-1A I
City of Iowa City, Iowa j
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Zuchelli Hunter do Associates July 1985
Annapolis, Maryland
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TABLE OF CONTENTS
Page
Preface: Findings Summary
I. Executive Summary .............................. Z-1
VI. Residential Market Potential ................... VI -1
A. Supply Characteristics .................... VI -1
B. Demand Characteristics .................... VI -5
C. Conclusions and Recommendations ........... VI -8
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A.
Economic Overview .........................
I-1
B.
The Commercial Office Market ..............
I-2
C.
Hotel Development Potential ...............
I-3
D.
Retail Development Potential ..............
I-4
E.
Residential Market Potential ..............
I-5
II.
Economic Overview ..............................
II -1
A.
Population ................................
II -1
B.
Households ................................
II -3
C.
Household Income ..........................
II -4
D.
Labor Force and Employment ................
II -6
E.
Conclusions ...............................
II -11
III.
Commercial Office Market .......................
III -1
A.
Supply Characteristics ....................
III -1
B.
Demand Characteristics ....................
III -7
C.
Conclusions ...............................
III -9
IV.
Hotel Development Potential ....................
IV -1
A.
Hotel Supply Characteristics ..............
IV -1
B.
Hotel Demand Characteristics ..............
IV -3
C.
Conclusions and Recommendations ...........
IV -7
V.
Retail Development Potential ...................
V-1
A.
Supply Characteristics ....................
V-1
B.
Demand Characteristics ....................
V-6
C.
Conclusions and Recommendations ...........
V-14
VI. Residential Market Potential ................... VI -1
A. Supply Characteristics .................... VI -1
B. Demand Characteristics .................... VI -5
C. Conclusions and Recommendations ........... VI -8
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PREFACE: FINDINGS SUMMARY
The following report contains Zuchelli, Hunter & Associates,
Inc.'s (ZHA) detailed technical analysis of commercial real
estate markets in the Iowa City/Johnson County area. As a
result of this market reconnaissance activity, as well as the
other technical assignments completed by ZHA for Parcel 64-1A,
ZHA concludes that the City has three options. The options are
as follows:
•Option 1 --Develop a mixed-use project which is pri-
marily speculative in nature (no major users identi-
fied) which is geared to capture the available
markets identified in this market analysis. Under
this option, ZHA would continue under its present
contract to define a preferred redevelopment project
and select a development strategy. Under this alter-
native ZHA would conduct design and financing analyses
of two alternative redevelopment scenarios. This
analysis would compare these development alternatives
with respect to the following parameters: land dis-
position proceeds to the City; open space and ameni-
ties provided through development; overall urban
design quality; fiscal impact (jobs, tax revenues,
etc.); and, other relevant selection criteria. As
specified in the attached market reconnaissance
report, ZHA has defined the redevelopment alterna-
tives with the greatest potential for success as
follows:
- Alternative A
ucvca.v wcuc--arils d4rernative envisions the con-
struct on of a commercial condominium building
the ground floor of which would be devoted to
retail space and open space/public amenities.
Approximately 20,000 to 30,000 gross square feet
of condominium retail space would be developed.
Upper levels of the building would be developed
with condominium office space. Approximately
15,000 to 25,000 square feet of space would be
constructed. Condominium office space would be
marketed directly to professional -type users.
The project would generate a net new parking
demand of 120 to 200 parking spaces. A design
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analysis would be completed in order to deter-
mine how many parking spaces could be practic-
ally accommodated on the site itself. Because
of the unproven nature of condominium develop-
ment in the Iowa City market area, pre -selling
both office and retail condominium units would
be a necessary component of the development
process.
Alternative B, Residential/Retail Mixed -Use
Deve o ment--L e Alternative A, this alterna-
tive
terna-
tt ve�s that the ground level would be
developed with a combination of retail and
public open space and amenities. In this alter-
native the retail would be directed toward
enhancing the residential development. Approx-
imately 15,000 to 20,000 square feet of retail
space would be constructed. Residential devel-
opment on the upper levels would be maximized.
ZHA estimates that approximately 150 to 200
residential apartment units could be constructed
in a mixed-use structure. Units would be rental
apartments directed at the highest end of the
market. These "semi -luxury" units would be mar-
keted to both young professionals and students.
Because of the nature of existing demand, as
jwell as the location of the site, the apartments
would be attractive to a large number of stu-
dents. However, ZHA envisions the development
to be a unique contribution to the Iowa City
market. It will offer a new standard of quality
of rental apartments available in the downtown.
The building will be designed for potential
conversion to condominiums. This project can
be expected to generate a net new parking demand
of 220 to 320 spaces. A design study will be
completed to determine how many parking spaces
can be cost effectively constructed on the
site itself.
• 0 tion 2, Fair Godmother Scenario --The potential
nega ves assoc a e wi t e two recommended devel-
opment alternatives (the high risk of condominium
development and the desirability of additional rental
apartments) require the consideration of an alterna-
tive process for completing the study. This process
would be the direct marketing of the site to poten-
tial "fairy godmother users". ZHA would solicit
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interest from prospective financial institutions,
corporations or major department stores for the
construction of a major facility on the site. This
alternative to development differs from speculative
development in that a major user would be identified
before construction of the project. ZHA would pre-
sent the site in a discretionary manner to insiders
in the industry and begin a major marketing effort
to identify potential interested parties. In the
course of completing the assignment to date, ZHA has
received "hints" from several sources that potential
major users may be available. The exact nature and
Scope of Services for this assignment would be clari-
fied with City Council and Iowa City officials.
•
Option 3, No action --The City Council may well wish j
to decide not to pursue marketing of the site at the
present time. Because of the softness of commercial
real estate markets and the risks associated with
delivering a "fairy godmother" the City Council may
prefer to suspend ZHA's technical work efforts for
the present time. This alternative essentially land-
banking'the site for a future use, creates the poten-
tial for accommodating a future "fairy godmother".
However, the down side of this alternative needs to
be seriously considered. Dormant urban renewal land
does nothing to enhance a city's potential for new
development. Nothing enhances development potential
like new development. The incremental growth of
urban areas is a direct result of the multiplier
effect of new development. Specifically, Alternative
A or Alternative B (as described above) has the
potential to enhance business activity.in the central
business district. New office tenants and new resi-
dents will enhance the potential for improved retail
activity. Corresponding intensifying retail
development in the downtown will serve to strengthen j
the downtown's image as the focus for shopping in
the entire regional area. These positive impacts
compare favorably with the image of stagnation and
restricted economic growth suggested by surface
parking lots on important land in the central busi-
ness district.
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I. EXECUTIVE SUMMARY
This technical memorandum contains Zuchelli, Hunter &
Associates, Inc. (ZHA), analysis of real estate market develop-
ment potential for parcel 64-1A in Iowa City, Iowa. This
report is divided into six major sections. This first section
presents a general overview as well as summary of key findings
and analyses.
The remainder of the report reviews five specific aspects
of the Iowa City marketplace and economy. The second section,
Economic Overview, reviews key socio-economic indicators for
Iowa City and thesurrounding region. The remaining sections
discuss the relative strengths and weaknesses of each of these
important real estate market segements (office, hotel, retail
and residential).
Each market segment analysis is divided into three sections:
supply characteristics; demand characteristics and conclusions
and recommendations. In each of these sections, the entire
real estate market is evaluated. ZHA has investigated supply
and demand characteristics for both the downtown area and
surrounding regions. Where appropriate, emphasis was devoted
to downtown development parameters.
The objective of this analysis was to determine those
markets with the greatest potential for real estate development.
It was not the objective to create a complete market investiga-
tion. A "bullet" format is used to present the underlying
facts, findings and conclusions throughout this report. This
format allows a reduction in overall text and focuses the
analysis on key points for consideration. The remainder of
this section presents in summary form the key findings of each
of the report's major sections.
A. ECONOMIC OVERVIEW
• The Iowa City economy is strong. Although heavily
reliant upon the University of Iowa, the metropolitan
area has exhibited stability and moderate growth for
the past ten years. Official demographic reports for
the Iowa City metropolitan area project continued
stability for the next several years. A major caveat
is that the University is beginning to revise enroll-
ment estimates downward. Major downturns in enroll-
ment at the University of Iowa would have substantial
repercussions on most areas of real estate development.
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• Population and households are still growing in the
Iowa City area; however, increases are beginning to
level off. The rate of population growth and house-
hold formation is declining.
• The socio-economic demographics of the Iowa City
metropolitan area are somewhat difficult to assess.
The large number of students and University employees
make it difficult to compare this area to other
metropolitan areas.
• In general the standard of living in Iowa City is
high. The costs of living are low when compared to
national averages and the University enhances recrea-
tional, cultural and other leisure activities avail-
able for a City of this size.
i• Levels of unemployment are remarkably low when com-
pared to local, state or national averages. The
main concern with respect to employment is that as
many as one-third of available jobs are with the
University and correspondingly over half of total
jobs are with state or local governments.
B. THE COMMERCIAL OFFICE MARKET
• For a City of its size, the commercial office market
in Iowa City is quite small. The total quantity of
office space in the downtown area is estimated to be
only 265,000 gross square feet.
• The University of Iowa is the major consumer of office
space in the downtown. Presently they occupy almost
half of all available space; however, most of their
space is inferior in quality. The University owns
much of the space they occupy.
• Plaza Centre One is the only truly Class A office
building in the downtown. This building, completed
in 1977, has never been fully occupied. The building
which contains approximately 60,000 gross square feet
of space currently has an estimated 7,000 square feet
of vacant space. This clearly suggests a poor market
for prime office space in the downtown. A convenient,
dedicated supply of parking for Plaza Centre One has
often been cited as one of its primary impediments to
success. ZHA has concluded that there is not a market
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to support substantial quantities of speculative
office space on parcel 64-1A at the present time.
High existing vacancies as well as low lease rates
support this contention.
• Presently there is some interest in the downtown for
condominium office space. Primary users (other than
the University) include lawyers, accountants, design
professionals, insurance companies and real estate
firms. In other locations in the country, these
types of firms have proven to be the most frequent
consumers of condominium office space. ZHA believes
that 15,000 to 25,000 gross square feet of condomi-
nium office space could be developed on parcel 64-1A.
In order to justify the risk, however, commitments
for at least 50 percent of this space should be
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sought before development.
• Another office development scenario includes the
location of a major user of office space to create a
landmark headquarters -type facility. At the present
time, ZHA has not yet identified any potential users
of this type.
C. HOTEL DEVELOPMENT POTENTIAL
• The construction of the Holiday Inn in downtown Iowa
City has added a new dimension to the quality and
price structure of area hotels and motels. The
Holiday Inn represents the market's first true hotel
complete with convention and banquet facilities.
• Preliminary occupancy statistics provided by the
Convention and Visitors Bureau suggest that the
Holiday Inn has caused a shift in the market away
from Coralville to Iowa City. Iowa City's market
share has increased from 23 percent of all hotel room
revenues to 38 percent subsequent to the Holiday
Inn's opening. (These results are based on limited
data.)
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• ZHA projects continual growth in the Iowa City/Coral-
ville hotel and motel markets. In fact, it seems
that a new major facility could come on line by as
early as 1989.
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• ZHA does not believe parcel 64-1A should be committed
to hotel development at the present time. The Holiday
Inn has apparently changed the nature of the market
substantially. It seems prudent to wait for stabil-
ized occupancy characteristics to better understand
the "downtown" hotel market before constructing a
competitive facility.
• The University of Iowa also has a major impact on the
overall health of the hotel/motel room market. If
the University experiences a downturn in enrollment,
the overall hotel market will shrink.
D. RETAIL DEVELOPMENT POTENTIAL
• With the opening of Old Capitol Center, the downtown
has once again emerged as the center of retailing in
the metropolitan area. Although this downtown mall
has undermined some of the older retail infrastruc-
ture, both shops in the mall and shops in existing
older buildings seem to be performing well.
The mix of shops, the level of expenditures and
promotional/marketing strategies all suggest that the
downtown retail market is greatly influenced by the
resident student population. Several statistical
analyses conducted by ZHA suggest that there is room
for additional retail development in the Iowa City/
Coralville market area. The area is apparently
losing trade from local residents of the county to
neighboring counties. The location of parcel 64-1A
makes it ideally suited for additional retail develop-
ment in enhancing the overall urban design of down-
town Iowa City. However, because of its somewhat
remote location from the existing "center of gravity"
of retail development, ZHA does not believe there is
strong potential for the creation of a major, multi-
level specialty retail complex. Rather, the site
should be developed with retail at ground level which
complements office and/or residential development on
upper levels.
• In refining this development alternative, ZHA believes
condominium retail development should be considered.
Presently, Eastdale Plaza is being converted to
condominium specialty shops with apparent success.
This approach may well succeed on parcel 64-1A.
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• The raising of the minimum age for the consumption of
alcoholic beverages will have a major effect on retail
establishments in the downtown. More than 30 restau-
rants and bars serve alcoholic beverages. These
establishments generate an enormous volume of sales
revenues in the downtown. On Tuesday through Saturday
night, the bars, restaurants and cafes of the down-
town are packed with students from the University.
While this change in minimum age will undoubtedly
cause hard times for some of the area's restaurants
and bars, it should open up new opportunity markets
to provide alternative forms of evening entertainment
and amusement for these students.
Market findings suggest that the downtown area could
support an additional department store. However, it
would appear to be difficult to attract a department
store to parcel 64-1A. A site closer or adjacent to
Old Capitol Center would have much greater potential
for success.
RESIDENTIAL MARKET POTENTIAL
• The rental residential market in Iowa City is driven
by students at the University. Local real estate
professionals estimate that 80 percent of all rental
units are occupied by students. Student renters are
extremely location -sensitive. Although high vacancy
rates exist for some remote properties (such as in
Coralville) occupancy levels in the close -in downtown
areas range from 98 to 100 percent.
Apartment rental rates for quality downtown proper-
ties are high, ranging in excess of $600 per month
for a three-bedroom unit. These prices decline with
distance from the campus.
In general, the condominium market in Iowa City is
soft. The largest market segment of condominium pur-
chasers are students and parents of students. A
carefully planned condominium project directed pri-
marily at this market (as well as the young profes-
sional market) could succeed on parcel 64-1A. ZHA
does not believe a luxury condominium project could
succeed on the site.
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• Although some remotely located rental projects are
not performing well, additional development of multi-
family rental apartments continues to be planned at
close -in sites near the University. ZHA has concluded
j that a substantial market share of the demand for
"close -in" rental units could be captured at the
parcel 64-1A site.
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ZUCHELLI, HUNTER &ASSOCIATES, INC.
II. ECONOMIC OVERVIEW
Section II contains an overview of key socio-economic
indicators for Iowa City and the surrounding region. This
analysis has been undertaken in order to gain a clear under-
standing of the forces which have been influencing development
in Iowa City in recent years and which will likely influence
future development. Particular attention has been devoted to
the relationship of the downtown to the overall metropolitan
area. Major topics discussed below include population, house-
holds, household income, labor force characteristics and employ-
ment.
In the discussion that follows, the Iowa City area is
analyzed as either Iowa City or Johnson County. Johnson County,
including Iowa City, is generally taken as Iowa City's metro-
politan statistical area (SMSA). The selection of geographic
areas to be considered was made based on both data availability
and the overall importance of the area in understanding metro-
populationlitan dynamics.
JohnsonFor
Countyexample,
is morerelevantthanthe growth of
of population in Iowa City for evaluating overall marketrpoten-
th
tial. Unfortunately, very little statistical background ddaata
is available for evaluating population and employment demogra-
phics in the downtown area or central business district of
Iowa City.
A. POPULATION
• Unlike many urban areas in the midwest, the popula-
tion of Johnson County has shown steady, although
moderate growth since 1970. As shown in Table 1,
total Johnson County population has increased' from
78,138 in 1977 to 83,400 in 1983. This represents
an increase of 5,262 people or 7 percent. Many
areas in both the midwest and the State of Iowa have
actually decreased in population during the same
period. This represents an annual average growth in
population of 1.1 percent for the County.
• The population of Iowa City itself during the same
period has also exhibited modest growth. As shown in
Table 1, total population of Iowa City has increased a
total of 3,246 between 1977 and 1983. This represents
an average annual growth of approximately 1.1 percent
per year.
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` TABLE 1
TRENDS IN POPULATION
IOWA CITY, IOWA
1977 TO 1983
IowaCity Johnson County
Population Hou __ldss — Population Housenolds
Percent Percent Percent Percent
Number Change Number Change lhanber Change Number Change
1974 47,444* - - - 75,025* - -
1977 49,154* - 17,800 - 78,138* - 27,200 -
1980 50,508* - 19,300 5.5% 81,717* - 30,900 10.4%
1981 51,100 1.2% 19,300 0% 83,000* 1.6% 31,700 2.6%
1982 51,559* 0.9% 19,600 1.6% 84,000* 1.2% 32,100 1.3%
1983 52,400 1.6% 20,200 3.1% 83,400* -.7% 32,900 2.5%
1984 - - - - 84,900* 1.8% - -
1988 - - - - 89,200 4.3% 35,900 9.1%
Average Annual Growth
1977-1983 541 1.1% 400 2.21 877 1.1% 950 3.5%
• Iowa Census Data Center.
Source: Zuchelli, Hunter G Associates, Inc.;
Sales t Marketing Management
• No major changes are anticipated in these population
growth patterns in the near-term future. The popula-
tion for Johnson County is anticipated to increase
to 89,200 by the year 1988. This represents a con-
tinued annual increase in population of slightly
less than 1 percent per year.
• One of the primary factors which will effect popula-
tion growth in coming years is total student enroll-
ment.at the University of Iowa. Student enrollment
effects population both directly, through the number
of students living off campus, and indirectly through
the number of jobs created by the University and
University Hospital.
• Combined graduate and undergraduate student enroll-
ment at the University of Iowa has remained both
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stable and high during the last several years.
Current total enrollment is approximately 29,500
students. However, the University is presently
revising enrollment forecasts and beginning to pre-
dict a gradual decline in total student enrollment. i
Some estimates project this decline to be by as much
as 20 percent during the next five years. A decline
of this magnitude will have tremendous negative
impacts on all sectors of the Iowa City/Johnson
County economy.
• On the positive side, the City and business community
have recently taken new steps to promote business
development and increase the overall health of the
economy. The recently formed First Capitol Develop-
ment, Inc., is targeting industries for economic
development and beginning efforts to aggressively
market Iowa City to companies in these target Indus-
tries.
B. HOUSEHOLDS
• A basic indicator of economic strength within a given i
area is the rate of household growth. Table 1 illus-
trates the number of households and percent change
in household growth for both Iowa City and Johnson
County. Data is presented from 1977 to 1983 and
projected through the year 1988.
• As can be seen from Table 1, households are increas-
ing at a faster rate of growth than population itself
in both Iowa City and Johnson County. From 1977 to
1983 households in Iowa City have increased at 400
per year or an average growth rate of 2.2 percent.
During the same period of time households in Johnson
County have increased by almost 1,000 per year or a
growth rate of 3.5 percent.
• This significant increase in the number of households
is partially the result of declining household size.
In 1977 the average household size in both Iowa City
and Johnson County was approximately 2.9 persons.
Correspondingly, in 1983, the average household size
was approximately 2.6 persons. This reflects a
nationwide trend toward declining household size
created by several factors including greater numbers
of elderly living alone, lower birth rates, greater
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number of singles and single -parent households, etc.
This declining household size, combined with a reason-
able increase in overall population, helped to fuel
real estate markets for both residential and commer-
cial development in the 1970's. However, household
size is beginning to stabilize. Current estimates
project that the average household size nationally
will begin to stabilize at around 2.5 individuals.
• In summary, declining household size has fostered
market growth in recent years; however, household
size has stabilized and cannot be expected to gene-
rate major market growth in the near-term future.
C. HOUSEHOLD INCOME
• ZHA has examined current household income distribu-
tions and evaluated trends in average household
income levels. Household income is a basic measure
of the overall economic health of an area and its
relative buying power within trade areas.
TABLE 2
TRENDS IN HOUSEBOLD IMM
IOWA CITY, IUA
1979 TO 1983
Iowa City Johnson County
anTotal'ianTotal
Household (000) Household (000)
1979 15,904 360,463 16,403 535,652
1980 16,373 391,440 16,887 608,669
1981 17,107 409,171 17,625 651,654
1982 20,733 524,338 23,047 894,203
1983 22,175 577,819 24,574 976,696
Percent Increases
1979-1983 39.49 37.68 49.88 82.19
Source: Zuchelli, Hunter a Associates, Inc.
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• Table 2 illustrates the growth in household income
from 1979 to 1983 for Iowa City and Johnson County.
Median household income increased 39.4 percent in
Iowa City and 49.8 percent in the County. Median
household income in the metropolitan area, taken as a
! whole, increased by 82.1 percent. Possible causes of
this apparent shift in income include outmigration of
more affluent households or increases in student
enrollment at the University of Iowa.
• Household income distribution is illustrated in Table
3. Income distribution is illustrated across four
selected income ranges. Again, these figures reflect
a more affluent distribution of households in areas
outside the City itself.
TABLE 3
HOUSEHOLD INCOME DISTRIBUTION
IOWA CITY METROPOLITAN AREA
1983
!
Household Johnson
Income Iowa City County
10,000 - 19,999 24.68 22,98
20,000 - 34,999 26.6 29.4
35,000 - 49,999 15.4 17,7
50,000 and over 12.8 13.1
Total 79.4 83.0
Median Household
Income 22,175 24,574
Source: Zuchelli, Hunter & Associates, Inc.
• An important point of this analysis is to illustrate
that household income in both Iowa City and Johnson
County has increased substantially in real terms.
The actual increase in the consumer price index from
1979 to 1983 was approximately 28 percent. Since
median household incomes in Johnson County and Iowa
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City increased by approximately 50 percent and 40
percent, respectively, real purchasing power when
adjusted for inflation has shown actual growth. This
is not the case in many major urban areas throughout
the Country. Therefore, despite inflation and a
relatively stable economy, the purchasing power of
residents of Iowa City has improved.
LABOR FORCE AND EMPLOYMENT
Understanding the dynamics of the labor force is
useful in understanding the economic growth potential
experienced in Iowa City and the overall metropolitan
area. The paragraphs and tables below illustrate
various trends and characteristics in employment over
the last several years.
• Unemployment in Johnson County is illustrated in
Table 4 from 1979 to 1984. During this time, unemploy-
ment in the area has averaged 2.8 percent. Nationally,
during the same period of time unemployment has
averaged almost 8 percent. In fact, in many areas
of the midwest unemployment has averaged in excess
of 10 percent during the same period of time. There-
fore, Iowa City has exhibited remarkable levels of
low unemployment rates during the last several years.
This stable, high level of employment is clearly a
healthy economic indicator.
• Table 5 illustrates overall trends in employment in
Johnson County during 1979 and 1982. Employment in
each major trade sector is illustrated by percentage.
The most interesting aspect of this table is the
high percentage of government employment in the
County. Forty-nine percent of all jobs were govern-
ment jobs in 1979. This includes state and local
governments as well as University of Iowa, University
Hospital and VA Hospital employees. In 1982, govern-
ment jobs accounted for 51.8 percent of all jobs.
Local officials indicate that government employment
has risen to even greater percentages of total employ-
ment during recent years. This is a truly unusual
condition in that in most communities government
employment can be expected to account for only 10 to
15 percent of all jobs.
/.;�00
ZUCHELLI, HUNTER & ASSOCIATES, INC.
II -7
TABLE 4
UNEMPLOYMENT RATES
JOHNSON CITY, IOWA
1979 TO 1984
'Unemployment Rates
JOHNSON 000N27-
.
3.2
3
28
• z.e
2.4
212
d 2
f.e
J.6
• a �f.4
1.2
f
0.8
0.8
0.4
0.2
0
1984
1983 1982 1981 1980 1979
YEAR
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II -8
TABLE 5
TOTAL EMPLOYMENT,JOHNSON COUNTY, IOWA
1979 TO 1982
I
Percent Em to meet
r9 7-9 98 1983 198 1
Industry
Government 49.78 51.88 50.99 50.68
Service 14.48 13.98 13.98 13.98
Manufacturing 8.48 7.58 8.18 8.48
Retail Trade 16.08 16.68 16.68 16.28
Wholesale Trade 2.48 2.58 2.48 2.38 i
Finance, Insurance, ;
Real Estate 2.68 2.68 2.68 2.78
Transportation 2.48 2.08 2.08 2.18
Construction 4.18 3.38 3.58 3.88
Total 1008 1008 1008 1008
Total Employment 39,324 41,394 45,400 47,400
Note: Employment statistics for 1983 and 1984 are not based on it
the same methodology as that used for 1979 and 1982. The
advent of the Iowa City MSA in 1983 generated changes in
employment measurment techniques.
Source: Zuchelli, Hunter s Associates, Inc.;
Iowa City Chamber of Commerce
• Total employment in Iowa City was 39,000 in 1979 and
increased to 41,000 in 1982. This slow but steady
increase is indicative of the growth in overall j
employment experienced in the County in recent years.
The increases have been in private industry and
government -related jobs. f
• Total employment in private industry from 1977 to
1982 is illustrated in Table 6. Employment jumped t
significantly from 1977 to 1978, however, it has
remained relatively stable since then with moderate i
increases each year. Employment in retail trade,
manufacturing and services have shown the greatest
amounts of growth during this period. On the other
8@8fingEpip*Meg57int&og§giruction has shown continual
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Source: Zuchelli, Hunter 6 Associates, Inc.;
County Business Patterns -Iowa
• The most remarkable increases in employment have
occurred in the service sector. Employment increased
from 4,200 jobs in 1977 to 5,800 jobs in 1982. This
represents a total growth of approximately 40 percent
or an annual average growth of almost 8 percent.
This statistic implies that Iowa City/Johnson County
is successfully making the transition to a service-
oriented economy.
• Employment trends at the University of Iowa from 1979
to 1985 are illustrated in Table 7. Total employment
has ranged from 16,000 in 1979 to almost 19,000 in
1985. Not all of these jobs are full time, and many
of the jobs are given to students, however, the
University of Iowa remains a dominant employer in
Iowa City. In fact, ZHA estimates that almost 40
percent of the total work force of Iowa City is
employed by the University or the University Hospital.
The effect on total employment is even more dramatic
when the "domino" effect of the University on other
private sector employment are considered. The impor-
tance of the University to the overall health of
Iowa City/Johnson County cannot be overstated.
10,0?f
TABLE 6
PRIVATE INDUSTRY
EMPIQYMENP TRENDS
JOHNSON COUNTY, IOWA
1977 to 1982
i
1977
1978 1979
1980
1981
1982
Wholesale
880
935 1,059
1,022
1,058
919
Retail Trade
5,929
6,803 6,391
6,451
6,419
6,868
Manufacturing
2,726
2,917 3,293
2,937
2,924
3,342
Finance/Real Estate
852
1,121 1,038
1,042
1,086
1,070 i
Services
4,213
4,756 5,644
5,655
5,312
5,858 j
Construction
1,247
1,383 1,283
1,070
961
1,092
Transportation/Otilities
732
864 906
887
743
730
Other
170
162 161
223
297
73
Total Private Employment
16,749
18,941 19,780
19,287
18,800
19,952
Source: Zuchelli, Hunter 6 Associates, Inc.;
County Business Patterns -Iowa
• The most remarkable increases in employment have
occurred in the service sector. Employment increased
from 4,200 jobs in 1977 to 5,800 jobs in 1982. This
represents a total growth of approximately 40 percent
or an annual average growth of almost 8 percent.
This statistic implies that Iowa City/Johnson County
is successfully making the transition to a service-
oriented economy.
• Employment trends at the University of Iowa from 1979
to 1985 are illustrated in Table 7. Total employment
has ranged from 16,000 in 1979 to almost 19,000 in
1985. Not all of these jobs are full time, and many
of the jobs are given to students, however, the
University of Iowa remains a dominant employer in
Iowa City. In fact, ZHA estimates that almost 40
percent of the total work force of Iowa City is
employed by the University or the University Hospital.
The effect on total employment is even more dramatic
when the "domino" effect of the University on other
private sector employment are considered. The impor-
tance of the University to the overall health of
Iowa City/Johnson County cannot be overstated.
10,0?f
ZUCHELLI, HUNTER &ASSOCIATES, INC.
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TABLE 7
UNIVERSITY OF IOWA
DIPLOYMENP
TRENDS
1979 M 1985
Faculty/teaching
1979
1982
1985
Full Time
1,768
1,821
1,904
Part Time
172
186
238
Students -Full Time
19
69
54
Students -Part Time
2,076
2,192
2,584
Hourly -Students
9
42
6
Hourly -Eon -students
7
16
8
Tbtal 7tachin9
4,051
4,326
4,794
Professional & Scientific
Pull Time
2,567
3,001
3,405
Part Tim
290
391
510
Student -Pull Time
358
379
449
Student -Part Time
255
262
223
Hourly -Students
165
98
21
Hourly -ion -Students
56
129
108
71ota1 Professional & Scientific 3,691
4,260
4,716
Merit Emlcyees
Full Time
4,657
4,695
4,761
Part Time
322
456
482
Student -Pull Time
16
12
73
Student -Part Time
75
43
64
Hourly -Student
3,051
3,186
3,963
Hourly -Non -Student
280
191
114
Total Merit EWloyees
8,401
8,583
9,457
Total Employment
Non -Student
10,119
10,836
11,530
Student
6,024
6,283
7,437
Total
16,143
17,119
18,967
Sources: zuc e 1 , Hunter
& Associates, Inc.;
University of Iowa
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• Employment in finance/insurance/real estate has not
increased substantially from 1977 to 1982. This
sector is one of the primary consumers of downtown
office space.
E. CONCLUSIONS
i
• ZRA's analysis of basic socio-economic data indicates
that the general economic condition of the Iowa City
area is strong. The area can be considered a pocket
of stability when compared to other cities of its
size in the midwest. ZRA anticipates that the trends
identified in this section will continue for the next
five years.
i
• Area population continues to increase; however,
increases in population growth are small. Iowa City
should continue to experience steady, but small,
growth in overall population.
• Income and spending potential of the working popula-
tion has been increasing faster than the consumer
price index. Growth in retail sales and retail
facilities has responded to this increasing spending
j potential. These trends are expected to continue in
the future.
• Replacement of housing, office and retail facilities
will play an important role in future development and
redevelopment projects both in the City and County.
The healthy economy, combined with stable population
growth, will generate increased demand for new facili-
ties.
• The overall health of the area should also promote a
positive attitude by government, University and
business community leaders toward spending local
revenues on required infrastructure improvements.
• The major caveat to a healthy economic future for
Iowa City is the University of Iowa. The local
economy is highly dependent upon University -generated
jobs as well as student demand in the retail and
residential sectors of the economy. If the Univer-
sity experiences major downturns in enrollment during
the coming years, the Iowa City economy will suffer.
9
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ZUCHELLI, HUNTER &ASSOCIATES, INC.
III. COMMERCIAL OFFICE MARKET
In this section, ZHA summarizes the strengths and weaknes-
ses of the commercial office market in the Iowa City metropoli-
tan area. For purposes of analysis, this review concentrates
on the downtown office market.
This market reconnaissance was designed to review basic
characteristics of the office market and to identify the over-
all potential for additional office development in the downtown
during the next several years. ZHA has analyzed basic supply
characteristics and past development and absorption trends.
Based on these findings, as presented below, and on current
development opportunities and constraints within the downtown,
ZHA will identify the potential for developing office space on
parcel 64-1A.
A. SUPPLY CHARACTERISTICS
There is no single source of information with respect
to office supply or office development in either Iowa
City or Johnson County. ZHA has assembled the follow-
ing data base from a series of confidential interviews
with those knowledgeable of the office market in
Iowa City, field surveys of existing buildings and
telephone conversations with real estate brokers in
the Iowa City marketplace. ZHA believes that these
tables represent an accurate assessment of existing
office conditions in the downtown.
• Throughout this section reference is made to various
classes of office space (Class A, B and C). These
designations refer to a subjective classification of
the various types of available space within a market
area. Class -A space refers to the highest quality
of space available, in general it is newly constructed
space, built with high-quality materials and having
complete contemporary conveniences (central air con-
ditioning, gracious entry and quality finishes). It
is subjectively better space than Class -B space. In
the Iowa City market area, Plaza Centre One is clearly
Class -A office space.
Class -B office space is fully functional space which
has most contemporary conveniences but lacks the
i� ZUCHELLI, HUNTER & ASSOCIATES, INC.
overall quality level associated with Class -A space.
In the Iowa City market area, the Iowa State Bank
Building is an example of Class -B office space.
Class -C office space refers to buildings which offer
servicable space which is in one or more ways defi-
cient when compared to the average quality of space
available in the market. Deficiencies may include:
building code violations; lack of contemporary con-
veniences (central air conditioning); poor ventila-
tion; poor, worn or deteriorated interior building
finishes; and other similar deficiencies. In the
Iowa City market area the Davis Building is an example
of Class -C office space.
• Table 8 illustrates the major office buildings in the
downtown area. These eight buildings represent a
total of approximately 209,000 gross square feet of
leasable office space. This is a relatively small
amount of space; for example, the average size of new
office buildings in many downtown areas exceeds
200,000 gross square feet. In fact, many new major
office buildings contain 500,000 to one million square
feet.
• The only truly Class -A office building in the down-
town area is Plaza Centre One. This building, com-
pleted in 1977, contains approximately 60,000 gross
square feet of space. Although the building was
completed almost eight years ago and was almost 50
percent leased by its owners (the architectural firm
of Hansen, Lind, Meyer), the building has never been
fully leased. The fact that less than 30,000 square
feet of Class -A space cannot be absorbed by the
downtown market in an eight-year period, when it has
a corner on the market, is disturbing. Clearly, the
demand for office space in Iowa City is exceptionally
low.
• The University of Iowa is the major user of office
space in the downtown. However, the University leases
and owns primarily Class -B and Class -C office space.
The Jefferson Building, containing 41,700 gross square
feet, and the Eastlawn Building, containing 19,300
gross square feet, are both owned and occupied by the
University. The old Library Building, containing
23,400 gross square feet has been leased to the
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Building
j Plaza Centre One
Iowa State Bank Building
United Federal Savings and Loan
Mid American Savings Bank
Jefferson Building
I (University of Iowa)
I Eastlawn Building
Old Library Building
ji
I Old A&P Building
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TABLE 8
MAJOR DOWMnWN OFFICE BUILDIN'S
IOWA CITY, IOWA
Iowa & Gilbert 19,300 GSF
Linn & Washington 23,400 GSF
700 S. Clinton 20,600 GSF
Source: 2uchelli, Hunter & Associates, Inc.
209,000 GSF
I
i
Base Other
Rent Charges.
(Per SF) (Per SF) :r
$ 8.82 $4.00
$ 7.00 -
i
$ 7.50 utilities j
$ 7.50 N/A
University owned j
and occupied
University owned
and occupied
$ 1.38 utilities
& Improve-
ments i
University owned
and occupied
$13.500 (Estimated)
Rentable
Area
Location
(GSF)
College & Dubuque
60,000 GSF
102 S. Clinton
18,000 GSF
Clinton & College
14,000 GSF
Court Street
12,000 GSF
Dubuque & Washington
41,700 GSF
Iowa & Gilbert 19,300 GSF
Linn & Washington 23,400 GSF
700 S. Clinton 20,600 GSF
Source: 2uchelli, Hunter & Associates, Inc.
209,000 GSF
I
i
Base Other
Rent Charges.
(Per SF) (Per SF) :r
$ 8.82 $4.00
$ 7.00 -
i
$ 7.50 utilities j
$ 7.50 N/A
University owned j
and occupied
University owned
and occupied
$ 1.38 utilities
& Improve-
ments i
University owned
and occupied
$13.500 (Estimated)
ZUCHELLI, HUNTER & ASSOCIATES, INC.
University for three years for an exceptionally low
base rent which requires the University to make
substantial improvements in the property.
• The old A&P Building at 700 South Clinton Street is
also owned and occupied by the University. This
building contains approximately 20,000 gross square
feet. Therefore, the University of Iowa either owns
or leases approximately half of all office space in
major buildings in the downtown area.
I i
TABLE 9
I MISCELLANEOUS DOWNTaIN
OFFICE SPACE
Approximate
Building
Address Area
Davis Building Washington s Gilbert 8,000 GSF
Professional Building Washington Street 6,300 GSF
Law Office (Meardon et al.) Linn b College 7,500 GSF
Law Office (Leff, et al.) Linn 3,500 CSF
Law Office(s) Second Floor/Washington Street 8,500 (SF
Iowa Book and Supply Second Floor 2,000 GSF
i Miscellaneous Offices Second Floor/Clinton Street 6,000 GSF
Miscellaneous Office Space Various location 15,000 GSF (est)
Subtotal 56,800 GSF
Major Office Buildings 209,000 GSF
i
Total Office Market 265,800 GSF
1
Source: Zuchelli, Hunter s Associates, Inc.`
• Other office space in the downtown is illustrated in
Table 9. These additional buildings represent approx-
imately 56,800 square feet of available office space.
ZHA estimates the total office market in downtown
Iowa City to consist of approximately 265,000 gross
j square feet of space including small buildings and
second- and third -floor office uses.
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III -5
• Plaza Centre One, when constructed, set new standards
for both office space quality and rental rates in the
downtown. The building was constructed at a key
location on the College Street mall. This location
was further enhanced by the construction of the new
Holiday Inn. Despite these advantages, Plaza Centre
One has never been fully leased.
• Parking has been attributed as a major problem in
leasing the Plaza Centre One building. Although,
technically there is an adequate supply of parking to
serve this building, the convenience, cost and per-
ception of parking accessibility remains an issue
with potential tenants. When compared to the subur-
ban prototype of parking adjacent to the building,
Plaza Centre One has an uphill battle.
• The supply of available office space in both the
downtown and surrounding area is illustrated in Table
10. ZHA estimates that approximately 53,000 leasable
square feet of office space is presently available in
Iowa City. This space ranges from 7,000 square feet
of Class A office space at the Plaza Centre One
building to 12,000 square feet of industrial/office
space in the North Liberty Industrial building. The
latter, unfinished space is available at slightly
more than $2.00 per square foot.
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TABLE 10
AVAILABLE OFFICE SPACE SUPPLY
JOHNSON COUNIY
SPRING, 1985
Available
Estimated
Building Name
Square
Footage
Description
Lease
Rates
First Federal
2,400
Office space
$9 ft
Bywater
6,000
Office space designed for Hewlett/
$6 ft
Packard
Skatela;d
3,500
Remodeled office space
$6 ft
Plaza Centre one
7,000
Office space
$12-13
Elks Club
4,000
Office space/retail (Summer 85)
$10
Lyle Miller
2,800
Office space-connercial
$ 9-10
North Liberty
11,880
Interior to be finished to spec
$25,000
Industrial
annually
The Professional
1,297
Office space
$8-10
Building
Paul Helen Building
6,000
Office space -remodeled -Summer 85
$8 (est)
Liberty Land
5,950
Adjacent lot available
Pat Moore
2,100
Prefer accountant, lawyer
N/A
realtor, etc.
j Thtal Available
Square Footage.
52,927
i
Source: Zuchelli, Hunter & Associates, Inc.;
Iowa City Chamber of Commerce
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ZUCHELLI, HUNTER &ASSOCIATES, INC.
III -7
B. DEMAND CHARACTERISTICS
• In order to assess the overall demand for office
space in the downtown area, ZHA analyzed office space
construction trends during the last several years.
These trends are illustrated in Table 11. From 1981
to 1984 there has been only the smallest amount of
office space construction. Almost all of this office
space was remodeling of space in existing buildings.
This construction has ranged from 5,600 gross square
feet in 1981 to 21,500 gross square feet in 1984.
However, as can be seen from the number of projects
in each year, each project was the rehabilitation of
a small amount of office space. No new major build-
ings were constructed during this time period.
TABLE 11
RECENT OFFICE CONSTRUCTION
IOWA CITY, IOWA
1981 TO 1984
(NEW AND REHABILITATED, PROFESSIONAL
AND COMMERCIAL OFFICE SPACE)
Year
Total
GSF
1984
21,504
GSF
1983
14,846
GSF
1982
4,142
GSF
1981
5,612
GSF
1977
60,000
GSF*
Estimated Annual Absorbtion
Number of
Projects Value
11 $ 378,500
N/A 670,600
6 N/A
6 N/A
1 $3,000,000
_ 16,000 GSF
*Plaza Centre One Office Building
Source: Zuchelli, Hunter & Associates, Inc.;
Iowa City Building Permit Office
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
• The last major office building to be built in down-
town Iowa City was Plaza Centre One in 1977. As can
be seen from Table 11, this building contains 60,000
gross square feet and is estimated to be valued at
approximately $3 million worth of construction.
• ZHA estimates the annual average absorption of office
space in downtown Iowa City to be 16,000 gross square
feet per year. This estimate was derived by evaluat-
ing office construction from 1977 to 1984 as illus-
trated in Table 11: In fact, net new office absorp-
tion may be lower than 16,000 gross square feet
since abandoned or demolished office space has not
been deducted from this total.
• Current office lease rates in the downtown area are
illustrated in Table 12. Plaza Centre One, the Class -
A building downtown, is currently leasing space at
$12.00 to $15.00 per square foot. Existing leases
may, of course, be well below that level. Current
lease rates in Plaza Centre One include base rents of
approximately $9.00 per square foot plus approximately
$4.00 per square foot for utilities, common space
maintenance, taxes and insurance.
TABLE 12
DOWNTOWN OFFICE LEASE RATES
IOWA CITY, IOWA
Class of Building Low Average High
A $10.00 $11.25 $13.50
B 6.00 7.25 9.00
Average $ 7.75
Note: Estimated rates include utilities and other services.
Source: Zuchelli, Hunter s Associates, Inc.
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III -9
• Total lease payments for the bulk of office space in
the downtown are in the $6.00 -to -$9.00 range. ZRA
estimates that the total average annual lease rate is
approximately $7.75 per square foot in the downtown
area. The University, of course, occupies a great
deal of office space which they own.
C. CONCLUSIONS
• The University of Iowa, a prime consumer of office
space in the downtown, would seem to be a likely
candidate for additional new office space. In fact,
ZRA believes that the University is presently in the
market for additional office space. In light of
anticipated decline in enrollment, the University
might be tempted to lease space in order to reduce
exposure and reduce risk.
• ZRA does not feel that the University would, however,
be a likely candidate for leasing a major amount of
office space on parcel 64-1A. Neither the location
nor the type of project envisioned suits the Univer-
sity's needs. Although the University occupies
major amounts of office space, almost all of their
space is either in Class -C or Class -B buildings.
Clearly, the University is a price -conscious consumer
of office space. ZRA envisions any new construction
on parcel 64-1A to be of the highest quality, and
therefore expensive to either lease or buy. Addi-
tionally, while 64-1A is convenient to the downtown,
many, sites are much more convenient to the University
campus. ZHA does not feel that the location of
parcel 64-1A would be extremely attractive to the
University of Iowa.
• Future demand for office space in the downtown should
remain in line with recent trends. ZRA concludes
that the net new annual absorption of office space
will not deviate substantially from 15,000 to 20,000
square feet per year for the near-term future. This
relatively level absorption makes the construction of
additional office space on the site a risky venture.
• In addition to low absorption, there is presently a
large amount of vacant office space available in the
City. Most of the major privately occupied and leased
office buildings in the downtown have space available
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Eza� ZUCHELLI, HUNTER & ASSOCIATES, INC.
for lease. These high vacancies, combined with low
overall absorptions, do not suggest a positive cli-
mate for additional office development.
• One new building is being planned in the downtown
area. This building, being planned by the Scheuer-
man-Richardson Real Estate firm, is adjacent to
their existing offices at 510 South Clinton Street.
Current plans call for a mixed-use building contain-
ing office space, residential units and parking.
• ZHA believes one potential market niche for the
construction and development of new office space in
the downtown area lies with condominium office con-
struction. Currently, no condominium offices have
yet been built in the Iowa City metropolitan area.
Primary office users in the downtown (lawyers, account-
ants, design professionals, insurance agencies and
real estate firms) suggest a possible interest in
condominium -type space. In fact, several smaller
firms interviewed by ZHA expressed preliminary inter-
est in this type of development. These types of
firms are amenable to condominium development since
i unlike big corporations, they can more accurately
forecast their space and growth needs in future
years.
• The excellent location of parcel 64-1A, the nature of
small office space users in the downtown and the lack
of competition at the present time, suggest the
potential for condominium office space development on
parcel 64-1A. However, ZHA estimates the total demand
for this type of space to be from 15,000 to 25,000
gross square feet. Additionally, ZHA feels that at
least 50 percent of this area would need to be pre -
sold before the risks of development could be justi-
fied. This office space would generate additional
parking demand of three to four spaces per 1,000
square feet.
• Another possible scenario for office development on
parcel 64-1A is the identification of a primary user
looking to move a regional, corporate or financial
headquarters to Iowa City. This scenario, sometimes
/3��
M n ZUCHELLI, HUNTER & ASSOCIATES, INC.
III -11
referred to as "the fairy godmother scenario", would
require the identification of this major user before
development plans were finalized. Parcel 64-1A seems
i ideally suited for this type of development. Its
proximity to the Holiday Inn and Plaza Center One
office building, as well as the Dubuque Street park-
ing ramp, makes it one of the most desirable office
locations in the downtown. Additionally, no major
financial institutions are headquartered in Iowa
City. A landmark building could easily be erected
which would have a major impact on the City. However,
ZHA stresses that it is exceedingly difficult to put
this type of deal together. The odds of realizing
this scenario are small.
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IV. HOTEL DEVELOPMENT POTENTIAL
In this section, ZHA analyzes the potential for the con-
struction of transient lodging uses on parcel 64-1A. In this
analysis ZHA reviews the supply and demand characteristics for
hotel and motel rooms in both downtown and suburban marketplaces.
The downtown market is clearly more important in this analysis;
however, ZHA feels it is important to review the overall dynam-
ics of the market in order to fully understand development
potential.
In the following paragraphs, ZHA first reviews characteris-
tics of the competitive supply of hotel rooms in the market.
Then, hotel demand characteristics are reviewed according to
basic hotel patron groups. Finally, based on projected growth
according to key economic indicators, ZHA projects future demand
potential in the hotel market and identifies the development
potential of additional hotel rooms on parcel 64-1A.
A. HOTEL SUPPLY CHARACTERISTICS
• The Iowa City metropolitan area hotel/motel market is
summarized in Table 13. There are an estimated 1,643
total hotel and motel rooms currently in the market
area. Of this total, only the Holiday Inn or 178
rooms (11 percent) are located in downtown Iowa City.
The largest component of hotel rooms are in the
Coralville area adjacent to the major arterials: I-
80, First Avenue, Highway 6 and 218, etc.
• In addition to the Holiday Inn, the Iowa House offers
115 rooms for $35.00 per night in the downtown area.
These rooms are used almost exclusively by visitors
to the University.
• There are 23 hotels and motels in the Iowa City/Coral-
ville market area. Of these only 12 facilities have
in -excess of 50 rooms. Correspondingly, only seven
facilities have in excess of 100 rooms.
• Hotel room rates range from $20.00 per night in lesser -
quality properties to in excess of $50.00 per night
at the Holiday Inn downtown. ZHA estimates the
average stated room rate at $31.00 for the Iowa
City/Coralville market. Additionally, ZHA estimates
/ 3�ZJF
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I
ZUCHELLt, HUNTER SOCIATES, INC.
IV -2
TABLE 13
H07TIS AND MOTIMS
IM CrrY/CORALVILLE AREA
Stated
Number
Room Rates
Hotel Nam of Rooms
Amenities
*Alexis Park Inn 29
$29-49
P, K
The Abbey 83
The Abbey Retreat 24
33-45
IP, R,
K, HC
Airline Motel 10
27-34
13-20
P, R,
HC
The Alm 43
24-31
Ambassador inn 167
28-37
IP, R
Blue Top Motel 12
16-22
K
er=In 128
34-44
IP, R,
HC
Cha ge 18
18-24
Clayton House 49
20-26
P, K
Highlander Inn 96
32-40
P, K
Holiday Inn 178
36-53
IP, R,
L, HC
Howard Johnsons 82
31-39
IP, R
*Inns U.S.A. 101
20-26
P, R
Iowa FARM 107
33-40
R
Iowa Lana radge 80
20-25
P, R
Ironmen Inn 140
Kings inn 96
32-40
IP, P,
R, HC
Markee Inn 40
22-30
25-30
P
Motel 6 103
16-18
p
Park Motel 8
15-18
K
Siesta Motel 20
18-25
K
Sunset Motel 29
18-22
Thtal Room 1,643
Weighted Average Room Rate
$31.00
'Estimated Achieved Room Rate
$27.90
FAY: P - Pool (outdoor)
IP - Indoor Pool
K - In -room Kitchens
R - Restaurant
HC - Health Club
L - Cocktail Lounge
- New Hotel -Opening 1985
Source: Zuchelli, Hunter & Associates, Inc.;
Convention and Visitors Bureau
I
ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -3
1
the achieved room rate at approximately $28.00 per
night. Achieved room rates result from discounts
offered to repeat users, businessmen, group travel
and other special marketing concessions.
• Amenities vary considerably from hotel to hotel. !
However, most major properties have a pool. At least j
six of the hotel properties have indoor pools. Lower- 1
quality hotels typically offer in -room kitchen facili-
ties.
• The major story with respect to the hotel/motel mar-
ket is the construction of the downtown Holiday Inn.
Opened in September of 1984 this first -quality Holiday j
Inn represents Iowa City's first real hotel. The
hotel brings a new quality level as well as price
structure to the hotel/motel market. Amenities such
as an indoor pool, a health club, a gourmet restau-
rant and a bar with entertainment make this urban
hotel a truly first class environment. Additionally,
a 10,000 -square -foot ballroom and 8,000 square feet
of meeting room space make this hotel a first class
conference facility which is unequaled' in the area.
• The Alexis Park Inn opened on South Riverside Drive
in January, 1985. This 29 -unit facility offers its
suites for $29.00 to $49.00 per night. The suites
include full kitchen as well as living room facili-
ties. This facility is one of only two suite com-
plexes in the Iowa City/Coralville market.
• Inns O.S.A. is another new motel facility opening in
January, 1985. This 101 -room complex ranges in price
from $20.00 to $26.00 per night. It features an
outdoor pool as well as limousine service.
B. HOTEL DEMAND CHARACTERISTICS
• Hotel occupancy characteristics for the Iowa City/
Coralville market area are illustrated in Table 14.
t
Quarterly room revenues are illustrated for both
1983 and 1984. Room revenues for July/August/Septem-
ber and October/November/December have increased !
approximately 8 percent between 1983 and 1984. When
adjusted for inflation, this increase represents a
real growth of approximately 5 percent in hotel room
revenues.
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9
I
ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -4
TABLE 14
HOTEL ROOM SUPPLY AND OCCOPAWY CHARACTERISTICS
IOTA CITY METROPOLITAN AREA
1983 70 1984
*Coralville hotels not included in room revenues
Source: Zuchelli, Hunter 6 Associates, Inc.
• Table 14 illustrates the increase in the supply of
available hotel rooms from April, 1983 to December,
1984. Several major new hotel properties were con-
structed during this period of time increasing the
total rooms from 1,168 to 1,513. This represents a
30 percent growth in the supply of available hotel
rooms. Since this supply increased substantially
faster than the increase in total hotel room revenues,
the average occupancy levels of hotel properties has
decreased.
• Estimated average hotel occupancies for all hotel/
motel properties from April, 1983 to December, 1984
are illustrated in Table 14. These average occupancy
levels range from in excess of 90 percent in July/
August/September of 1983 to approximately 53 percent
in January/February/March of 1984. ZHA estimates
1
Occupied
Estimated
Total
Available
Roan
Percent
Revenues
Roans
Nights
qxq
1983
April/May June*
501,000
1,168
N/A
N/A
July/August/September
2,550,000
1,168
98,076
906
October/November/December
2,117,200
1,335
81,430
681
1984
January/February/March
1,720,180
1,335
63,710
538
April/May/June
2,200,300
1,335
81,493
686
July/August/September
2,772,100
1,335
102,670
858
October/November/0ecember
2,353,400
1,513
87,163
641
Estimated Average Annual Occupancy
681
*Coralville hotels not included in room revenues
Source: Zuchelli, Hunter 6 Associates, Inc.
• Table 14 illustrates the increase in the supply of
available hotel rooms from April, 1983 to December,
1984. Several major new hotel properties were con-
structed during this period of time increasing the
total rooms from 1,168 to 1,513. This represents a
30 percent growth in the supply of available hotel
rooms. Since this supply increased substantially
faster than the increase in total hotel room revenues,
the average occupancy levels of hotel properties has
decreased.
• Estimated average hotel occupancies for all hotel/
motel properties from April, 1983 to December, 1984
are illustrated in Table 14. These average occupancy
levels range from in excess of 90 percent in July/
August/September of 1983 to approximately 53 percent
in January/February/March of 1984. ZHA estimates
1
r-1 n1 ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -5
the average annual occupancy of all hotel properties
to currently be at about 68 percent. This represents
a relatively healthy overall occupancy level.
• The relative share of the hotel market between Iowa
City and Coralville is illustrated in Table 15. In
1983 Iowa City captured approximately 23 percent of
all hotel room revenues, while Coralville captured
approximately 77 percent. These numbers remained
relatively constant until the downtown Holiday Inn in
Iowa City opened in September of 1984. At this point,
Iowa City's share of the market increased to approxi-
mately 38 percent while Coralville's share of the
market fell to 62 percent. Therefore, while overall
hotel room revenues have increased uniformly, Iowa
City's share of the hotel market has increased drama-
tically when compared to Coralville.
TABLE 15
IOWA CITY HOTEL/MOTEL MARKET SHARE
IOWA CITY, IOWA
1983 TO 1984
Percent of Hotel Room Revenues
Iowa C ty Coraly le Mar et
1983
April/May/June
N/A
N/A
1004
July/August/September
238
774
1004
October/November/December
238
774
1004
'1984
January/February/March
249
764
1004
April/May/June
228
788
1004
July/August/September
188
828
1004
October/November/December
388
628
1004
Source: Zuchelli, Hunter 6 Associates, Inc.;
Iowa City Chamber of Commerce
/3dif
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ZUCHELLI, HUNTER &ASSOCIATES, INC.
IV -6
• Iowa City/Coralville hotel room tax revenues are
illustrated in Table 16 for 1983 and 1984. In 1984
total hotel room tax revenues were approximately
$450,000. Currently, hotel/motel room tax revenues
represent 5 percent of total hotel and motel room
revenues.
TABLE 16
HOTEL ROOM TAX REVERES {
IOWA CITY/CORALVILLE, IOWA j
1983 TO 1984
f
j
i
Iowa City Coralville Total
1983
f
April/May/June $25,063 N/A $ 25,063
July/August/September 29,143 $ 98,397 127,540
October/November/December 23,690 82,173 105,863
1984 i
i
January/February/March 21,229 64,779 86,009
April/May/June 23,684 86,331 110,015
July/August/September 24,692 113,912 136,604
October/November/December 44,888 72,781 117,668
Zbtal $452,296
Note: Hotel roan tax revenues represent 5 percent of total hotel revenues.
Source: Zuchelli, Hunter & Associates, Inc.;
Iowa City Convention and Visitors Bureau
0 Demand for hotel rooms in the Iowa City/Coralville
market area result primarily from four different
sectors: commercial business demand; University -
generated demand; tourist and leisure demand; and, I
group meeting demand. ZHA estimates that University -
related business results in the largest share of
market demand at approximately 35 percent of total
I
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -7
occupied rooms. Similarly, ZHA estimates commercial
demand to be approximately 30 percent of all occupied
rooms. Group/meeting demand is estimated to be 20
percent of the total market.
• The management at the downtown Holiday Inn is pleased i
with early performance. Estimated average occupancy
has been approximately 68 percent to date. Occupan-
cies range from a low of 50 percent in December of
1984 and January of 1985 to a current 75 percent in j
February and March, 1985. The management is particu-
larly pleased with weekend business; in fact to
date, Saturday has been the consistently busiest j
day. Management attributes a high percentage of
this weekend business to various specials and promo-
tional efforts to attract people from the regional
area to the City for shopping, restaurants and enter-
tainment.
i
• Despite satisfactory performance with respect to
hotel room revenues, the management of the new down-
town Holiday Inn is disappointed with food revenues.
Special promotional efforts as well as*evening enter-
tainment and lunchtime "meal deals" have failed to
significantly improve food revenue performance.
Poor performance is attributed primarily to two main
factors: lack of convenient parking (when compared
to suburban alternatives); and substantial restaurant
competition throughout the metropolitan area.
• Parking for the Holiday Inn is provided in the Dubuque
Street parking ramp. The hotel pays a flat fee of
approximately $3,200 per month for which it is entitled
60,000 hours of parking. To date the hotel has needed
only 30,000 to 45,000 hours of parking per month.
C. CONCLUSIONS AND RECOMMENDATIONS
• Projected average daily hotel/motel room demand is
summarized in Table 17 for the years 1985 through
1991. In this analysis, the total average daily
occupancy (68 percent) is distributed among the
various sectors comprising total hotel room demand.
These individual market shares are then adjusted
individually for anticipated changes in market condi-
tions.
1
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(__�-11�\ ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -8
TABLE 17
PROTECTED AVERAGE DAILY HOTEL/M=
RXM DEMAND
IOWA CITY/CDRALVILLE, IOWA
1983 M 1984
Current
Market
Occupied Rooms Share 1986 3.988 1990 1992
Cc mercial (2!) 308 335 348 362 377
University (li) 358 391 399 407 415
Tourist/teisure (38) 109 112 119 126 134
Group/4eetiTg (108) 208 224 271 327 396
Other (11) 56 56 57 58 59
Total Occupied Rooms 1008 1,118 1,194 1,780 1,381
Competitive Supply 1,643 1,643 1,643 1,643
Supportable Supply 1,597 1,705 1,828 1,972
(70% occupancy)
Residualtitive (46) 62 185 329
Demand
Scarce: Zuchelli, Hunter i Associates, Inc.
• As with other real estate market sectors, the total
student enrollment at the University will have a
major impact on the overall health of the hotel/motel
room market. University -related business, parent/
student temporary accommodations, as well as group/
meeting business are both directly and indirectly
related to activity at the University.
• In the analysis presented in Table 17, ZHA has assumed
that student enrollment at the University of Iowa
will remain relatively stable during the next several
years. It is important to note that this assumption
may not be conservative, since University officials
are beginning to generate estimates of a decline in
total student enrollment.
• Slight increases in the demand for hotel rooms are
envisioned in the University, commercial and tourist/
i
I / how
i
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
IV -9
leisure demand categories. In general, however, the
increase in market demand for these sectors is small.
on the other hand, ZHA estimates an annual 10 percent
increase in demand for group/meeting facilities.
This increase in demand is primarily related to the
gradual full utilization of the banquet and meeting
room facilities at the downtown Holiday Inn. As
these facilities begin to make their mark in the
State and regional group/meeting business, continual
increases in hotel room demand from group/meeting
business can be expected.
• ZHA estimates that the Iowa City/Coralville hotel/
motel market can support an additional major new
hotel room facility (in excess of 100 rooms) by the
year 1989. This projection should hold true unless
the University experiences a major downturn in enroll-
ment (which is not counter -balanced by increases in
commercial business activity).
• Despite the positive outlook for the hotel/motel
market in the next five to six years, ZHA does not
recommend development of a new hotel on parcel 64-1A
at the present time. Since major components of demand
are University -related, the risks are too high.
Additionally, the Holiday Inn has not yet stabilized
its occupancy and, therefore, is an.unreliable predic-
tor of demand for downtown hotel rooms.
• If, however, alternative uses for parcel 64-1A do not
prove feasible in the next several years, it may well
be prudent to reconsider development of additional
hotel rooms on the site.
• The downside of not reserving this site for hotel
development is small. ZHA feels confident that
additional acceptable hotel development sites are
j available in the downtown Iowa City area.
I
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
V. RETAIL DEVELOPMENT POTENTIAL
The market potential for development of additional retail
space in the downtown depends on four basic factors: the nature
of existing retail supply; growth in population and households,
including student households; growth in household income; and,
expenditure potential and the propensity to spend that income
on various types of retail goods. In this section of the
report,' ZHA reviews these basic supply and demand characteris-
tics for the Iowa City/Coralville market area and evaluates
potential for retail development on parcel 64-1A.
A. SUPPLY CHARACTERISTICS
• The six major shopping areas in the Iowa City/Coral-
ville market area are illustrated in Table 18.
These areas include the downtown, Old Capitol Center,
Sycamore Mall, Lantern Park, Eastdale Plaza and
WardWay. ZHA estimates that these areas total
approximately 250 retail stores and approximately
one million square feet of leasable sales area.
i• Old Capitol Center is the largest and nicest shopping
facility in the market area. This downtown enclosed
mall contains approximately 60 stores, two department
stores and 273,000 square feet of leasable space.
iThe mall is attached to a multi -story parking deck
and inter -relates well with both the University and
the downtown area. The Downtown Transit Interchange
is also located at one end.
• The downtown area itself contains approximately 90
stores of various types, sizes and quality. ZRA
estimates the downtown to have approximately 200,000
gross square feet of leasable sales area. Downtown
stores range from state of the art facilities in the
base of the Plaza Centre One office building and the
Holiday Inn, to small shops located on the second
floor of older, unrehabilitated buildings. Retail
outlets in the downtown and Old Capitol Center are
heavily oriented toward the student market.
• The types of retail stores in the downtown are illus-
trated in Table 19. These 170 stores have a high
percentage of food establishments, clothing stores
and office and book stores. ZHA estimates that 20
percent of all retail space in the downtown is devoted
to restaurants, cafes and fast food outlets. This
/3af
i
Location
Type
Description
I
Downtown
Central Area
Rehabilitated Smell Buildings
Services, specialty
i
I
Old Capitol Center
i
i
I
TABLE 18
MAJOR SHOPPING AREAS
IOWA CITY
1985
Area
Location
Type
Description
Downtown
Central Area
Rehabilitated Smell Buildings
Services, specialty
shops 6 restaurant
Old Capitol Center
Downtown
Enclosed Mall
Department stores,
specialty shops a
general merchandise
Sycamore Mall
S.E. Iowa City
Enclosed Mall
Department stores &
general shopping
Lantern Park
Coralville
Neighborhood Shopping Center
Convenience stores
6 general merchandise
Eastdale Plaza
S.E. Iowa City
Condominium Enclosed Mall
Specialty shops
Wardway
Highway 218 6
Strip Commercial
Discount/neighborhood
Highway 6
center
7btal
Source: Zuchelli, Hunter 6 Associates, Inc.
Number of
Stores
90
60
50
16
29
12
257
57,000
94,000
1,007,500
i
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DZUCHELLI, HUNTER & ASSOCIATES, INC.
V-3
Source: Zuchelli, Hunter & Associates, Inc.
high percentage is directly attributable to the stu-
dent presence in the downtown. In fact, a great
deal of the existing establishments are marketed
directly to the student population.
i
• A unique development in the supply of retail space in
the Iowa City market area is the conversion of East -
dale Plaza to a condominium retail development.
This enclosed mall has had a history of economic
I
/3,?�
TABLE 19
MAJOR DOWNTOWN RETAIL
IOWA CITY, IOWA
i 1985
Type of Store
I
Number of Stores
Hardware
2 i
Book Stores
5 ;
Hair Boutiques
9
Record c Music Stores
3 �-
Restaurants & Bars
18
Fast Food & Carryout
15
Footware
6
Florists/Plant Store
4
Gift Shops
7
Jewelers/Optical
9
Clothing/Specialty
18 j
Theaters
4 .;
Bank/Financial
7
Bicycle/Sporting Goods
4
Camera
4
Grocery/Food
3
Travel
4
Office Services
10
Hobby/Electronic
5
Pharmacy/Cosmetic
6
Exercise Spa
3
Art/Antiques
6
Total
152
Source: Zuchelli, Hunter & Associates, Inc.
high percentage is directly attributable to the stu-
dent presence in the downtown. In fact, a great
deal of the existing establishments are marketed
directly to the student population.
i
• A unique development in the supply of retail space in
the Iowa City market area is the conversion of East -
dale Plaza to a condominium retail development.
This enclosed mall has had a history of economic
I
/3,?�
.0 --
ZUCHELLI, HUNTER & ASSOCIATES, INC.
V-4
difficulties; however, it is presently being success-
fully converted into condominium space. After less
than one year of sales, the owners have sold more
than half of the existing 57,000 available square
feet.
Condominium retail space in Eastdale Plaza is being
sold from $40 to $60 per square foot as shell space.
Tenants are responsible for providing all fixtures,
finishes, partitioning, as well as heating, electri-
cal and mechanical equipment. Total tenant cost
could likely double the initial investment for the
shell space. Many retail tenants moving to this
condominium space are coming from the downtown area.
Condominium purchasers cite the high cost of leasing
retail space as their primary motivation.
• Retail lease rates and other operating characteris-
tics are illustrated in Table 20. The greatest
range in base rents are in the downtown where space
can be leased for as low as $5.00 per square foot to
as much as $20.00 per square foot. In the smaller
buildings of the downtown, generally no percentage
rents are added to base rents.
• Lease rates in Old Capitol Center range from $12.00
to $15.00 per leasable square foot. Additionally,
percentage rents based on total sales are required.
Other charges include common area maintenance, taxes,
insurance, etc. These other charges can run as high
as $4.00 to $5.00 per square foot. Retail space in
suburban areas typically rents for slightly less than
comparable space in the downtown. For example, the
base rent for retail space in Sycamore'Mall is approx-
imately $10.00 to $12.00 per square foot.
Currently, vacancies in retail space in the Iowa
City/Coralville market area are low. ZHA estimates
that there is approximately 12,000 square feet of
available retail space in the downtown area. This
represents a vacancy rate of 6 to 8 percent of total
space. The performance in Old Capitol Center is
slightly better. ZHA estimates 2 to 3 percent of
the total available space in Old Capital Center is
presently vacant. Currently, Sycamore Mall and
Lantern Park have little or no vacancy. Estimates
of existing vacant retail space in the market area
are illustrated in Table 20.
/3�)af
1
1.
TABLE 20
RETAIL LEASE RATES AND OPERATING CHARACTERISTICS
IOWA CITY/CORALVILLE
1985
Present Vacancies
(square feet)
5,000
12,0001/
3,000
15,0002/
Base Rent Range
(per LSF)
$12-$15
$ 5-$20
$10-$12
$ 7-$10
$7
l/ Estimated.
2/ Under new ownership --conversion to condominiums.
Source: 2uchelli, Hunter 6 Associates, Inc.
Percentage
Rents
Yes
Generally No
Yes
Yes
No
I
Other Charoes
Common area maln-
tenance, taxes, etc:
Varies, generally
electricity
i
Common area main-
tenance
ain tenance
I
$1/SF common area
maintenance, taxes, E`
etc. a
$2/SF common area
maintenance, taxes,
etc.
ZUCHELLI, HUNTER & ASSOCIATES, INC.
v-6
• Old Capitol Center has raised the quality, cost and
character of retail facilities in the downtown to a
new standard. The convenience of enclosed shopping
is particularly attractive in the cold climate of
Iowa City. The mall, however, has changed the nature
of retail development in the rest of the downtown.
All of the department stores, as well as most of the
major specialty stores have moved into the mall. The
majority of stores not within the mall include:
smaller, incubator -type businesses; service and
destination -oriented retail businesses; and eating
and drinking establishments.
• With the possible exception of some of the smaller
unrehabilitated retail buildings in the downtown,
most of the major retail facilities in the Iowa
City/Coralville market area are in excellent, new or
rehabilitated condition. These include all of the
facilities, identified in Table 19.
B. DEMAND CHARACTERISTICS
• Retail sales trends for Iowa City are illustrated in
Table 21 from 1979 to 1983. Sales are indicated for
both Iowa City and Johnson County. During this
period in Iowa City total sales increased by 30 per-
cent in Iowa City and by 41 percent in Johnson County.
These sales trends surprisingly indicate greater
relative sales outside the central city despite the
opening of Old Capitol Center during this time period.
Total retail sales in Iowa City were approximately
$400 million in 1983 and were approximately $500
million in Johnson County for the same year.
• Sales expenditures in eating and drinking have increased
dramatically in both the City and the County in the
period of 1979 to 1983. As shown in Table 21, eating
and drinking sales revenues increased by 92 percent
in the City and 75 percent in the County. High
increases in this category combined with relatively
stable expenditures in staples such as furniture,
appliances and automotive expenditures indicate a
healthy economy with ample disposable income.
/3a8
[MVV ZUCHELLI, HUNTER &ASSOCIATES, INC.
V-7
Source: Zuchelli, Hunter & Associates, Inc.;
Sales & Marketing Management
• In order to further assess consumer satisfaction, ZHA
evaluated historic trends of retail expenditures
relative to median household income. Results of this
analysis are illustrated in Tables 22 and 23. Retail
sales expenditures as a percentage of effective buy-
ing income for Iowa City range from 85 percent in
1981 to 68 percent in 1983. The percentages are
exceptionally high. Normally, ZHA expects to find
retail sales as a percentage of buying income to be
in the range of 50 to 60 percent. This high percen-
tage is directly attributable to the great percentage
/3aP
a
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M
TABLE 21
RETAIL SALES TRENDS
IOWA CITY, IcwA
1979 70 1983
($000)
1979
1980
1981
1982
1983
Iowa City
Flood
Eating & Drinking
48,335
29,494
50,864
38,465
58,128
45,302
67,697
50,874
73,896
56,699
General Merchandise
Furniture/Appliances
34,589
13,285
39,536
14,429
45,890
15,672
52,923
53,279
Automotive
49,386
53,518
56,616
14,380
51,870
14,330
60,296
Drug
11,505
12,648
16,128
18,658
17,878
Total
274,073
304,235
345,570
365,475
393,319
JohnDon County
Food
Eating & Drinking
68,199
35,498
75,518
44,842
90,489
50,971
103,797
56,381
110,336
61,901
General Merchandise
35,720
41,190
48,060
54,590
54,643
Furniture/Appliances
20,313
23,363
26,776
24,198
23,752
Automotive
61,061
67,266
72,079
65,046
74,487
Drug
13,481
14,366
17,825
20,311
19,172
Total
351,445
393,070
451,617
466,734
496,347
Source: Zuchelli, Hunter & Associates, Inc.;
Sales & Marketing Management
• In order to further assess consumer satisfaction, ZHA
evaluated historic trends of retail expenditures
relative to median household income. Results of this
analysis are illustrated in Tables 22 and 23. Retail
sales expenditures as a percentage of effective buy-
ing income for Iowa City range from 85 percent in
1981 to 68 percent in 1983. The percentages are
exceptionally high. Normally, ZHA expects to find
retail sales as a percentage of buying income to be
in the range of 50 to 60 percent. This high percen-
tage is directly attributable to the great percentage
/3aP
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�, ZUCHELLI, HUNTER & ASSOCIATES, INC.
V-8
of students in the Iowa City marketplace. Students
with little or no income are still major consumers
with clothing, book, supply and other needs. This
i is reflected both in low household income figures as
well as high retail sales expenditures.
Population
Effective Buying Income
Retail Sales
Retail Sales as a
Percent of Income
Median Household Income
Households
Median Age
TABLE 22
RETAIL SALES EXPENDITURES
VERSUS EFFECTIVE BUYIIG INaM
IOR CITY, IUA
1979 70 1983
1979 1980 1981 1982 1983
52,400 50,508 51,100 51,900 52,400
$360,463 $391,440 $409,016 $524,338 $577,819
$274,073 $304,235 $345,570 $365,475 $393,319
.761 .781 .851 .701 .681
$ 16,403 $ 16,373 $ 17,107 $ 20,733 $ 22,175
18,300 19,300 19,300 19,600 20,200
23.9 23.8 24.8 25.0 25.1
Source: Zuchelli, Bunter & Associates, Inc.;
Sales & Marketing Management
ZUCHELLI, HUNTER &ASSOCIATES, INC.
Population
Effective Buying Intone
Retail Sales
Retail Sales as a
Percent of Income
Median Household Income
Households
Median Age
Household Size
V-9
TABLE 23
RETAIL SALES EXPENDITLMS
VERSUS EFFECTIVE BUYING ItIOME
JOHNSON COUNTY, IMA
1979 TO 1983
1979 1980 1981 1982 1983
81,100 81,717 83,000* 84,000* 83,400*
$535,652 $608,669 $651,654 $894,203 $976,696
$351,445 $393,070 $451,617 $466,734 $496,347
65.69
64.68
69.39
52.28
50.88
$ 16,403
$ 16,887
$ 17,625
$ 23,047
$ 24,574
28,000
30,900
31,700
32,100
32,900.
24.5
24.4
26.2
26.5
26.6
2.89
2.67
2.63
2.62
2.59
* Iowa census estimates.
Source: Zuchelli, Hunter 6 Associates, Inc.;
Sales i Marketing Management
• It is interesting to note that in both Johnson County
and Iowa City retail sales as a percent of income
have been falling between 1979 and 1983. This decline
in retail expenditure is an indication of consumer
dissatisfaction or saturation. For some reason,
consumers in Iowa City are expending less available
dollars than previously. This observation, combined
with high expenditures in eating, drinking and enter-
tainment, suggest possible consumer dissatisfaction
and potential loss of sales revenues to other markets.
• A flow of trade analysis in the southeastern Iowa
area is illustrated in Table 24. As can be seen from
this exhibit, Johnson County was a net looser of
trade in 1978, 1980 and 1982. This trend was reversed
in 1983 when Johnson County had a positive balance of
trade when compared to other counties in the area.
This exhibit also illustrates the dominance of Linn
Mkt MegiQn�as#flog fgfew
t
ZUCHELLI. HUNTER & ASSOCIATES, INC.
V-10
I of trade dollars. The results of this analysis also
suggests potential consumer dissatisfaction and
saturation in the Iowa City/Coralville market area.
TABLE 24
FLOW OF TRADE ANALYSIS
SOUTHEASTERN IOWA
1978 TO 1983
I
Percent (+inflow/ -Outflow)
1978 1980 19821 V81
Johnson County - 2.7 - 4.1 - 0.4 + 3.5
-- Linn County + 2.7 + 4.1 + 3.9 + 6.9
Iowa County + 0.7 + 4.5 + 3.9 + 3.1
j Washington County - 0.8 + 0.8 - 2.1 - 1.9
Cedar County - 8.0 - 7.5 -10.4 -10.4
Keokuk County -12.5 - 9.6 -12.0 - 9.7
Muscatine. County - 5.7 - 9.2 - 5.9 N/A
Louisa County -15.2 -15.6 -15.7 -16.3
Source: Zuchelli, Hunter s Associates, Inc.; ICCR
a Unrealized sales expenditures of Iowa City and John-
son County residents are further evaluated in Tables
25 and 26. In this analysis, expenditures on various
categories of retail purchases are compared to national
averages for these types of purchases. Table 25
suggests that there is no potential for additional
retail expenditures in Iowa City. In all categories,
expenditures exceed anticipated expenditures based on
income and national trends. However, the large num-
ber of students in the City greatly skew these sta-
tistics. ZHA has concluded that despite this anal-
ysis, there is additional potential for retail expen-
diture. Unrealized sales expenditures in Johnson
County are illustrated in Table 26. This analysis
i (similar to that presented in Table 25) illustrates
unrealized sales expenditures in most categories of
retail purchases. Despite the heavy concentration
of students in the County, the unrealized sales
expenditures are substantial enough to override this
effect and illustrate County -wide unrealized poten-
tial.
i
1
ZUCHELLI, HUNTER &ASSOCIATES, INC.
V-11
TABLE 25
UNREALIZED SALES EXPENDITURES
IOWA CITY, I=
1983
($000)
Source: Zuchelli, Hunter & Associates, Inc.;
Sales & Marketing Management
t
Resident
Retail
Unrealized
Total
Sales To Expenditure
Retail
Retail Type
Sales
Residents Potential
Expenditure
Food
73,896
72,387
67,605
-
Eating/Drinking
56,699
43,359
32,357
-
General Merchandise
53,279
49,016
38,136
-
Furniture
14,330
14,043
11,556
-
Automotive
60,296
57,281
50,270
-
Drug
17,878
17,520
8,667
Other
116,319
110,503
85,517
_
TotalNXIM
'109
9�
-
Sauce: Zuchelli, Hunter & Associates, Inc.;
Sales & Marketing Management
TABLE 26
UNREALIZED SALES EXPENDITURES
JOHNSON COUNPY
1983
($000)
Resident
Potential
Retail
Unrealized
Market
Total Sales To Expenditure Retail
Increase
Retail Type
Sales Residents Potential
Expenditure
(6)
Food
110,336
104,819 3.14,273
9,454
9.08
Eating/Drinking
61,901
52,616 54,694
2,078
3.8
General Merchandise
54,643
50,271 64,461
14,190
2.8
Furniture
23,752
23,277 19,533
-
-
Automotive
74,487
70,763 84,972
14,209
2.0
Drug
other
19,172
152,056
18,213 14,650
139,891 144,551
4,660
-
3.3
Total
496,347
459,850 497,154
44,591
8.06
Source: Zuchelli, Hunter & Associates, Inc.;
Sales & Marketing Management
t
0
ZUCHELLI, HUNTER & ASSOCIATES, INC.
V-12
The particular market segments in Iowa City/Johnson
County that demonstrate the greatest potential for
increased retail sales are food, eating, drinking and
entertainment, and general merchandise. The poten-
tial market increase suggested by the analysis in
Table 26 suggests a possible 9 percent increase in
sales expenditures in food and a possible 4 percent
increase in sales expenditures in eating, drinking
and entertainment. It should be pointed out that
these analyses are sensitive to resident versus
non-resident sales in the Iowa City marketplace.
• A further analysis of the ratio of retail sales expen-
ditures to effective buying income is -illustrated in
Table 27. In this analysis, retail sales of Iowa
City are compared to retail sales of other similar
metropolitan areas, primarily in the State of Iowa.
This analysis suggest that while median household
income in Iowa City is low when compared to other
metropolitan areas in the State (due to the high
level of students), average retail expenditures per
household are high. In fact, when retail sales as a
percentage of effective buying income are compared
for these metropolitan areas Iowa City is second only
to Dubuque for high levels of expenditure.
• Retail sales activity indices for the Iowa City mar-
ket area are illustrated in Table 28. These indices
indicate inflow or outflow of relative retail sales
from one area to another. These are obtained by
dividing an area's percentage of national, regional
or local population by its corresponding percentage
of national, regional or local retail sales. Higher
indices indicate positive relative retail environ-
ments.
The state of Iowa has a relatively balanced flow of
retail trade when compared to the entire United
States. However, the sales activity index comparing
Iowa City to Iowa indicates a substantial relative
flow of trade to Iowa City. Likewise the index which
compares Johnson County to the State of Iowa indi-
cates a healthy flow of trade to the County. on bal-
ance, these indices suggest that Johnson County is
picking up substantial regional trade; however, Iowa
City itself is performing remarkably well. These
positive retail sales relationships are caused by
/30� r
F
TABLE 27
RETAIL SALES PER HOUSEHOLD
COMPARABLE METROPOLITAN AREAS
1983
11
Source: Zuchelli, Hunter 6 Associates, Inc.r Sales and Marketing Management.
i
Median EffectiveRetail
4
1
i
I
Average Retail
i
Sales
as a Percent
City
Buying Income
Per Household
Rank
Sales
Per Household
Rank
of Effective
;i
;
I
Buying Income
Rank
Iowa City
Cedar Rapids
$24,574
$27,983
1
$15,086
3
61.4%
2
Dubuque$14,056
$23'822
6
$16,055
6
50.2%
6
Des Moines
Quad Cities
$26,591
$27'852
4
$15,858
1
2
67.4%
59.6%
q
Sioux City
$23,120
2
7
$13,959
7
Waterloo/Cedar Falls
$26,818
3
$14,119
$14,693
5
61.1%
3
4
54.8%
5
Source: Zuchelli, Hunter 6 Associates, Inc.r Sales and Marketing Management.
i
4
1
i
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I.
;i
;
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E;:^ \ ZUCHELLI, HUNTER & ASSOCIATES, INC.
V-14
TABLE 28
RELATIVE RETAIL SALES COMPARISON
IOWA CITY, IOWA
RETAIL SALES ACTIVITY INDICES*
Iowa/United States .99 j
Iowa City/United States 1.49
Iowa City/Iowa 1.51 j
Johnson County/Iowa 1.17
Iowa City/Johnson County 1.29
* Retail Sales Activity Indices are obtained by dividing an
area's percent of national, regional or local population'
by its corresponding percentage of national, regional or local
retail sales. Higher indices indicate positive relative
retail environments.
Source: Zuchelli, Hunter s Associates, Inc.;
Sales Marketing, Management, Inc.
several factors, including, but not necessarily
limited to, the rural character of the bulk of the
State of Iowa and the large number of students resid-
ing in Iowa City itself.
C. CONCLUSIONS AND RECOMMENDATIONS
• Retail activity in downtown Iowa City is stable and
strong. Although the development of Old Capitol
Center has undermined some of the older retail infra-
structure, on balance, the mall has served to heighten
I
Total
Total
Sales/
Retail
Population
Population
Area
($000,000)
(000)
Factor
United States
1,186,387
235,535
5037
Iowa
14,599
2,934
4,976
Johnson County
496
85.1
5,828
Iowa City
393
52.4
7,500
RETAIL SALES ACTIVITY INDICES*
Iowa/United States .99 j
Iowa City/United States 1.49
Iowa City/Iowa 1.51 j
Johnson County/Iowa 1.17
Iowa City/Johnson County 1.29
* Retail Sales Activity Indices are obtained by dividing an
area's percent of national, regional or local population'
by its corresponding percentage of national, regional or local
retail sales. Higher indices indicate positive relative
retail environments.
Source: Zuchelli, Hunter s Associates, Inc.;
Sales Marketing, Management, Inc.
several factors, including, but not necessarily
limited to, the rural character of the bulk of the
State of Iowa and the large number of students resid-
ing in Iowa City itself.
C. CONCLUSIONS AND RECOMMENDATIONS
• Retail activity in downtown Iowa City is stable and
strong. Although the development of Old Capitol
Center has undermined some of the older retail infra-
structure, on balance, the mall has served to heighten
I
9
ZUCHELLI, HUNTER &ASSOCIATES, INC.
V-15
retail activity in the downtown area and allow the
downtown to remain a center of shopping for the
region.
• As with other real estate market segments, the retail
market of Iowa City/Coralville is greatly influenced
by the resident student population at the University
of Iowa. The relatively high level of retail expen-
ditures in the City as well as the mix of shops in
the downtown are directly related to the large per-
centage of student shoppers.
• Retailers in the downtown area find the University of
Iowa students to be good customers. The current
student population is purported to be good buyers.
According to sales managers in Old Capitol Center,
they "buy a lot of clothes," "are interested in
quality purchases," and, "are doing a lot for the
overall health of the downtown."
• Managers of the mall at Old Capitol Center estimate
that 30 percent of sales dollars are generated by
students. ZHA feels that this estimate is probably
low. Visual inspection of the mall at various times
of the day indicates that a much greater percentage
of shoppers are students. ZHA conducted several for-
mal and informal interviews with merchants and sales
managers in the downtown and Old Capitol mall. The
general consensus of these retail sales professionals
was that the downtown market was not saturated with
retail development. Merchants were in general not
afraid of competition but rather encouraged additional
retail development in the downtown area.
• A wide range of shopping facilities are available
throughout the downtown and suburban areas of Iowa
City. These include neighborhood strip shopping
centers, enclosed specialty malls, enclosed regional
retail malls, discount shopping malls and a variety
of convenience outlets.
• Downtown Iowa City remains the focus of retail activ-
ity for the regional area. The quality and convenience
of the Old Capitol Mall, combined with the range of
conveniently located shops, boutiques and miscellaneous
outlets offer a wide range of shopping experiences.
/3.26
i
A
I
n� ZUCHELLI, HUNTER &ASSOCIATES, INC.
V-16
• Retail sales statistics when evaluated with respect
to national, regional and historic trends are diffi-
cult to fully evaluate. The large number of students
in Iowa City skew the statistics greatly and make
them difficult to interpret with respect to regional
and national norms.
• Despite the incongruency of the statistics available,
ZHA concludes there is room for additional retail
development in the Iowa City/Coralville market area.
The regional outflow of trade from Johnson County;
the unrealized sales expenditures identified for
Johnson County; and the declining retail sales (when
measured as a percentage of income) for both Iowa
City and Johnson County all reinforce this conclusion.
i
ZHA feels that sales dollars from both the City and
County are being lost to surrounding counties and in
addition a certain level of consumer dissatisfaction
exists.
• Parcel 64-1A is ideally suited with respect to addi-
tional retail development. A wide range of alterna-
tive retail developments could succeed on this site.
These alternatives include a department store, leasa-
ble retail space and condominium retail space. The
quantity of retail space developed at the site should
be determined by the preferred development alterna-
tive. ZHA does not feel there is sufficient demand
to create a major multi-level retail development on
the site. Second -floor retail development is histor-
ically difficult to achieve successfully. Addition-
ally, the site is not large enough to accommodate a
major anchor/mall-type development. Rather, with
the exception of a department store development,
retail development on parcel 64-1A should generally
be limited to the ground level.
• ZHA has concluded it will be difficult to attract a
department store to the parcel 64-1A site. Although
market demand suggests a department store could
succeed in the downtown, most department stores would
seek a location more directly related to Old Capitol
Center. The flow of pedestrian traffic is of criti-
cal importance in the success of a retail development,
making the distance between parcel 64-1A and the mall
a major concern.
/304
I
ZUCHELLI, HUNTER & ASSOCIATES, INC.
V-17
• The type of retail development for parcel 64-1A should
respond directly to existing markets. Convenience
goods, student -oriented businesses and retail esta-
blishments that become a destination in themselves
will have the greatest potential for success.
• Another major factor which will greatly influence
retail development in the near-term future is the
increase in the minimum age required to consume
alcoholic beverages. A great majority of the exist-
ing 33 eating, drinking and entertainment establish-
ments in the downtown serve alcoholic beverages. In
fact, a major portion of the revenues of these estab-
lishments are directly related to the sale of alcohol.
This change in minimum age will have a great effect
on many of the existing establishments in the down-
town.
• Correspondingly, the change in the minimum drinking
age can be viewed as an opportunity. New types of
entertainment/leisure time businesses, which are not
related to the sale of alcoholic beverages, are likely
to spring up in the downtown. These types of busi-
nesses are likely to include additional movie theaters,
coffee houses, video arcades and "light fare" type
restaurants. New retail development on parcel 64-1A
can compete directly in these new market areas.
1
I■
_ _----___-I
rnIN\ ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI. RESIDENTIAL MARKET POTENTIAL
In the following paragraphs, ZHA reviews the potential for
new residential development in the Iowa City metropolitan area.
The presentation format is similar to that used in previous
sections. First, general residential supply characteristics
are reviewed, and then, ZHA estimates past and future residen-
tial demand potential in Johnson County. Finally, based on a
review of general market characteristics within the area, ZHA
makes several recommendations with respect to residential
market potential on parcel 64-1A.
A. SUPPLY CHARACTERISTICS
• In this section, ZHA presents a preliminary analysis
and review of general characteristics of the housing
market in the Iowa City metropolitan area. This
analysis is undertaken to assess the market for
owner -occupied and rental housing units on Parcel
64-1A in downtown Iowa City. The type of housing
development possible on Parcel 64-1A would be a high-
density, mid- to high-rise building. This residen-
tial development would be part of a mixed-use devel-
opment containing retail, parking and possibly some
commercial office space. The environment created
would be truly urban and quite unique for the Iowa
City metropolitan area.
• It is difficult to scientifically assess the market
for this type of urban residential development in
Iowa City. There is very little to compare it to
directly. However, based on a general overview of
the residential market potential, ZHA has drawn some
preliminary conclusions with respect to the potential
for this type of development on Parcel 64-1A.
• Key characteristics of the existing supply of housing
in the Iowa City metropolitan area (as of 1980) are
illustrated in Table 29. The metropolitan area had a
total of approximately 31,600 housing units of which
slightly less than half (46 percent) were rental
housing units. In Iowa City slightly more than half
of total units are rental housing. Of the 18,600
total year-round housing units, 8,800 are owner -
occupied. The trend is even more dramatic in Coral-
ville where 68 percent of all housing units are
rental properties.
/,30700
n n ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -2
TABLE 29
HOUSING INVMMRY
IOWA CITY METROPOLITAN ARFA
1980
Total
Total Year Round Owner Median value Percent
Housing Housing occupied Owner Ccoupied Rental
Area Units Units Units Units ($) Housing
Johnson County 31,583 30,220 16,335 $58,400 468
(total)
Iowa City 19,235 18,594 8,773 58,600 538
Coralville 3,672 3,491 1,161 56,200 688
Iowa 1,121,314 1,053,033 756,517 40,600 289
Source: Zuchelli, Banter 6 Associates, Inc.,
U.S. Census of Housing
• The percentage of total housing units which are ren-
tal properties is extremely high compared to regional,
state and even national standards. As can be seen
from Table 29, within the entire State of Iowa only
28 percent of all housing units are rental units.
These high percentages are, of course, once again
due to the University of Iowa's impact on the metro-
politan area.
• Although precise statistics are not readily available,
there is an extremely high percentage of rental pro-
perties in the "close -in" or downtown area of Iowa
City. ZHA estimates that in the area defined approx-
imately by Brown Street on the North, Summit and
Governor Street on the east, Kirkwood Avenue on the
south and the Iowa River/Rocky Shore Drive on the
west, approximately 75 to 80 percent of all housing
units are rental properties.
• The approximate area described in the paragraph above
represents the AAA area for ownership of rental
ZUCHELLI, HUNTER &ASSOCIATES, INC.
VI -3
i
properties. Local real estate brokers estimate that
average annual occupancy rates for rental properties
in this area exceed 97 to 98 percent of available
units. These occupancy levels are exceptional and
compare with the top rental markets found anywhere in
the country. Correspondingly, closer -in units (those
within walking distance of the campus) exhibit even
higher occupancy levels with little or no vacancy
whatsoever.
• The average number of annual house sales is illustrated
in Table 30 from the year 1977 to 1985. Sales range
from a high of 919 in 1977 to a low of 592 in 1982.
The average number of annual house sales in the Iowa
City metropolitan area is 787 units.
TABLE 30
RECENT HOUSING SALES
IOWA CITY METROPOLITAN AREA
1977 TO 1985
Number of Average
i Housing Sales
Year Sales Price
1985 35 $70,857
1984 811 64,790
1983 805 68,043
1982 592 66,283
1981 709 61,610
1980 720 60,006
1979 849 56,051
1978 887 52,174
1977 919 49,076
Estimated Current House
House Sales Price $68,500
Average Number of Annual
House Sales 787 units
Source: 2uchelli, Hunter a Associates, Inc.;
Iowa City Chamber of Commerce
t
ZUCHELLI. HUNTER & ASSOCIATES, INC.
VI -4
• The average annual sales price for individual housing
units in the Iowa City metropolitan area is illustrated
in Table 30 from 1977 to 1985. With the exception of
1983 to 1984, the average annual sales price increased
every year. ZHA estimates the current average annual
house sales price to be $68,500.
a The sales price for condominium units is included in
the statistics presented in Table 30. Two-bedroom/
one bath condominium units in quality buildings in
good locations are selling for $55,000 to $65,000
per unit.
Iowa City
TABLE 31
RECENT RESIDENTIAL CONSTRUCTION
IOWA CITY, CORALVILLE AND JOHNSON COUNTY
1983 TO 1984
1983 1984
Single -Family
Duplex
Multi -Family
Total Units
Coralville
Single -Family
Duplex
Multi -Family
Total Units
Johnson County
Single -Family
Duplex
Multi -Family.
Total Units
Total New Area Housing Units
Total Area Housing Units
Percent Growth
145 110
114 26
868 207
-M
24
14
108
24
343
168
X75
—707
73
34
0
0
0
0
73
77
1,675 583
35,258 35,841
58 1.78
Source: Zuchelli, Hunter a Associates, Inc.;
Iowa City Chamber of Commerce
/3OW
0
9
_____ __..1 ..... 1-11 ___._._._._._._... ..^,1111__
n� ZUCHELLI, HUNTER 8c ASSOCIATES, INC.
VI -5
• Recent residential construction in the Iowa City
metropolitan area is illustrated in Table 31 for 1983
and 1984. Housing construction has fallen off drama-
tically in all areas of the county. In 1983 over
1,100 total housing units were constructed in Iowa
City. This number fell to 343 in 1984. Similarly,
in Coralville 475 units were constructed in 1983 and
only 206 units were constructed in 1984.
• As can be seen from Table 31, multi -family housing
units remain an important component of the supply of
housing stock. In 1983, 87 percent of new housing
units were either multi -family or duplex developments
in Iowa City. In 1984 this number fell to 68 percent,
but it is still an extremely high percentage.
B. DEMAND CHARACTERISTICS
• The demand for housing units in both Iowa City and
Coralville is greatly related to activity at the
University of Iowa. Local realtors estimate that 80
to 90 percent of all rental housing units in the
metropolitan area are occupied by students at the
University of Iowa. This percentage is even higher
at "close -in" properties. In fact, the University so
dominates the rental market that all downtown residen-
tial properties are leased on an August -to -August
basis, independent of whether the tenant is a student
or not.
• The University, with its large number of employees,
also directly affects the demand for owner -occupied
housing in the area. ZHA estimates that approximately
30 percent of all owner -occupied units are occupied
by those employed -by or studying -at the University.
• This demand in both the rental and owner -occupied
housing markets has historically been good for Iowa
City. However, the residential markets are extremely
dependent upon the University. In the event of a
substantial decline in enrollment, housing sales
prices, as well as rental lease rates, would be
expected to fall proportionate to the downturn.
• Table 32 illustrates the extent of the University -
generated demand on the rental housing market. This
table illustrates that the University of Iowa provides
/,jai
11
[SL1y ZUCHELL:, HUNTER 8c ASSOCIATES, INC.
I
i
VI -6
dormitory and housing facilities for less than 25
percent of its total enrollment. This housing
includes 6,600 dormitory beds as well as 800 apart-
ment units for graduate students and their families.
This implies that over 20,000 University students
must find housing accommodations for themselves in
the Iowa City marketplace (this estimate includes an
allowance for students who commute to their parents
home).
TABLE 32
RESIDENCE HALL CHARACTERISTICS
UNIVERSITY OF IOWA
IOWA CITY, IOWA
Facilities
Student Housing
Family Housing
Rates
Double Room (per bed)
Board
Other Characteristics
Occupancy
Residence Requirement
Expansion Plans
6,600 beds
800 units
$1,031/year
$1,070/year
99%
No
None
Source: Zuchelli, Hunter 6 Associates, Inc.
• University housing continues to remain a good value.
Dormitory rates per bed for a double room are $1,031
per year. A student leasing a quality apartment
within walking distance of the campus could easily
expect his housing cost for the year to be from $1,800
to $2,000. Of course, in this scenario, he could
expect to have substantially greater living space
(private bedroom, private bath, kitchen, living room,
etc.).
/3oy
100
a
ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -7
• The University of Iowa has no expansion plans for its
existing dormitory facilities. Although occupancy
rates are currently running at 99 percent, no new
construction is anticipated. However, the University
is converting triple rooms to double rooms and there-
fore slightly decreasing its overall dormitory capa-
city. This will result in a net decrease of approx-
imately 500 beds over the next 10 years.
• Lease rates for typical rental apartments in the
downtown vicinity are illustrated in Table 33.
Average lease rates for a one -bedroom apartment are
$340 per month. Corresponding rates for a two-bed-
room apartment are $475 per month. Generally, lease
rates cover all expenses with the exception of elec-
tricity.
TABLE 33
LEASE RATES
RENTAL APARTMENTS
DOWNTOWN VICINITY
1985 TO 1986
Low
Average
High
1 BR $275
$340
$400
2 BR 400
475
550
3 BR 525
585
650
Notes:
1. Most leases include heat but do not include electricity.
2. Most leases run from August to August or September to
September, the non -student renter is simply inconvienced.
3. Stated lease rates decline as the distance from campus
increases.
4. ZHA estimates 60-858 of all rental apartments in Iowa City
are occupied by students.
Source: Zuchelli, Hunter & Associates, Inc.
I
I
ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -8
• The Pentacrest Garden Apartments development is a
prototypical quality residential project catering to
the student market. Lease rates for these apartments
are illustrated in Table 34, they range from $363
for a one -bedroom, one -bath to $619 for a three-bed-
room, one -bath unit. The development does not include
major amenities (health club, pool, etc.); however,
parking and shared laundry facilities are provided.
ZHA estimates that a quality new rental complex could
achieve rents in excess of these. As of March, 1985
this complex was entirely leased for the 1985-1986
academic year.
TABLE 35
PENTACREST GARDEN APARTMENTS
LEASE PATES
1985 TO 1986
Unit Type Monthly Lease Rate
1 BR/1 Bath $363 plus electricity
2 BRA Bath $517 plus electricity
3 BR/1 Bath $619 plus electricity
Notes:
1. These buildings were entirely leased through August, 1986,
by March, 1985.
2. Heat is included.
3. No major amenities except parking and laundry facilities
have been provided.
Source: Zuchelli, Hunter & Associates, Inc.
C. CONCLUSIONS AND RECOMMENDATIONS
• The residential rental market in Iowa City is highly
dependent upon the University for generating demand.
A downturn in University enrollment would have a
substantial adverse impact on the overall level of
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -9
demand for rental apartments. However, student demand
for rental apartments is highly location -sensitive.
Though some apartment complexes are having financial
difficulty (primarily those located remotely such as
in Coralville) occupancy levels and overall perfor-
mance characteristics have been very good in close -in
projects.
• The structure of lease rates for rental apartments in
the Iowa City metropolitan area also suggests a strong
sensitivity to location. Lease rates are highest at
those units within walking distance of the campus and
fall off gradually as that distance is increased.
Iowa City's excellent public transportation system
assures that lease rates remain healthy within the
area convenient to the downtown.
• From this analysis, ZHA concludes that despite high
vacancy levels in some remotely located apartment
complexes, new apartment complexes can be success-
fully developed in good location at the present time
(i.e., easy walking distances or on major transit
routes).
• The total estimate of demand for new housing stock in
the Iowa City metropolitan area is illustrated in
Table 35. Total demand is comprised of two major
components: the average annual growth in household;
and replacement of existing housing stock. Using
population forecasts for the Iowa City metropolitan
area (which are sensitive to University of Iowa effect
on demand) ZHA estimates that 620 new housing units
will be required per year between 1985 and 1988.
Additionally, due to dilapidation and demolition of
existing deteriorated housing stock, ZHA estimates an
additional 350 units will be required. This results
in a total estimated annual demand of approximately
1,000 units per year.
• Condominium residential development represents a
small component of the residential market in Iowa
City. A recent condominium project, close to the
University, was sold as follows: 50 percent to stu-
dents or parents of students; 17 percent to staff of
City Hospital; 17 percent to investors; and, 17
percent to permanent Iowa City residents. From this
ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -10
and similar samplings, ZHA does not believe there is
a strong market for owner -occupied condominiums in
the Iowa City area.
TABLE 35
ESTIMATE OF HOUSING DEMAND
IOWA CITY METROPOLITAN AREA
1985 TO 1988
Total Housing Stock 35,000
Average Annual Growth 620
In Households (28)
Replacement of Existing Stock 350
Total Estimated Annual Demand 970 units/year
*Includes real growth as well as transfers.
Source: Zuchelli, Hunter & Associates, Inc.
• ZHA has identified a gap in the condominium market.
At the present time, there are no condominiums cater-
ing to the luxury market. This market segment,
however, is estimated to be quite small.
• ZHA does not believe luxury condominiums could be
developed on Parcel 64-1A at the present time. Both
the small size of the estimated market, as well as
the dominant student influence in the area support
this conclusion. Additionally, confidential inter-
views with developers, investors, realtors, as well
as potentially interested residents, suggest that
parcel 64-1A could not be successfully developed as
luxury residential condominiums.
• Condominiums or rental residential development aimed
at the mid -price market could be successfully devel-
oped on parcel 64-1A. This market would be comprised
largely of students, however, it would be up -scale
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ZUCHELLI, HUNTER & ASSOCIATES, INC.
VI -11
enough to attract young professionals such as Univer-
sity, hospital and government staff. The excellent
location of the site with respect to both the down-
town and the University would enable a development
at the top end of the rental market. The development
could succeed as either condominiums or rentals, how-
ever, a condominium development would likely need to
be phased or smaller in overall size to allow for
adequate market absorption. On the other hand, ZRA
is confident of strong absorption for rental proper-
ties. The number of units developed in a rental
residential scenario would be limited by site rather
than market conditions.
I
City of Iowa City
MEMORANDUM
Date: July 11, 1985
To: City Council
From: Dale Helling, Assistant City Manager
Re: Street Lighting Project
A summary of findings of a street lighting survey conducted by the
University of Iowa Student Senate was included in a memorandum from the
Traffic Engineer and submitted to Council in your information packet on
June 14, 1985. At that time Council requested that time be scheduled for
informal discussion of this project. I have set aside time at our
informal meeting on July 15, 1985, for further discussion of this project
and I have attached a copy of the above referenced memorandum from the
Traffic Engineer for your further review prior to the scheduled informal
discussion.
A representative from the Student Senate will be present for the informal
discussion. The Traffic Engineer will also attend.
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City of Iowa City
MEMORANDUM
Date: July 11, 1985
To: City Council
From: Dale Helling, Assistant City Manager
Re: Street Lighting Project
A summary of findings of a street lighting survey conducted by the
University of Iowa Student Senate was included in a memorandum from the
Traffic Engineer and submitted to Council in your information packet on
June 14, 1985. At that time Council requested that time be scheduled for
informal discussion of this project. I have set aside time at our
informal meeting on July 15, 1985, for further discussion of this project
and I have attached a copy of the above referenced memorandum from the
Traffic Engineer for your further review prior to the scheduled informal
discussion.
A representative from the Student Senate will be present for the informal
discussion. The Traffic Engineer will also attend.
tp4/8
City of Iowa City
MEMORANDUM
Date: June 6, 1985
To: City Council
I �
From: City Manage
I
Re: Street Lighting Project
Enclosed is a memorandum from the Traffic Engineer commenting an information
from the Student Senate relating to street lighting.
In addition, the City and the University recently agreed to a joint project Ij
which will provide for the installation of street lights on Burlington Street
between Madison Street and the River. There are no street lights in this
area and, particularly with the planned bridge reconstruction, street lights t
are advisable. The lights will be installed as soon as the materials are
delivered.
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City of Iowa City
MEMORANDUM
Date:
May 6, 1985
i• ( ,
To:
The Honorable Mayor and
City Council
ILNIJ'11
From:
James Brachtel, Traffic
Engineer
Re: University of Iowa Student Senate Street Lighting Project
The Student Senate of the University of Iowa conducted a street lighting
project during the winter of 1985. It was the intent of the Student Senate's
project to determine if there were areas in town where either street lighting
was needed or existing street lighting needed to be improved. A base map of
the city was prepared and Placed on display at the main library of the
University of Iowa. Students were encouraged to put a green pin in this map
to locate "area where street lights exist but need improvement" or a yellow
Pin to locate areas where lights are needed." In addition to the map and
the pins, 'the project also encouraged students to add written comments
regarding the street lighting in Iowa City.
.Below is a list of those areas that were identified by the students as either
1) existing street lighting needed to be improved or 2) needing street light.
The areas "where lights are needed" were pinned with yellow pins and are
marked with an asterisk below. The existing street light conditions are
shown in the right hand column. The written student remarks have been added
where theyare applicable and are shown in bold type. The applicable current
installation practice is noted in parenthesis under each location.
AREA OF THE NORTH SIDE STREET LIGHTING PROJECT
PIN MAP SUGGESTION EXISTING CONDITIONS
On College Street at van Buren Street.* None.
(Current practice would install one 175 watt mercury street light at the
intersection.
Ornamental lighting ioon College tStreet asbri ge blocked as bconsidered tomature besatisfactory substitute. The tree has since been removed, a street light
could be installed.)
On College Street at its intersection One 400 watt Mercury.
with Governor Street.
(Lighting is consistent with intersection lighting practice.)
On Washington Street at its intersec- Three 250 watt NPS.
tion with Clinton.* Two 150 watt HPS.
(Lighting is consistent with intersection lighting practice. Area is
part of urban renewal improvements.)
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The 100, 200 ana 300 block of East Six 150 watt HPS units per block.
Washington Street.* Various low level 75 watt Mercury
lights for sidewalk.
(Lighting is consistent with downtown lighting practices. Area is part of
Urban Renewal improvements.)
Mid -point of the 400 block of East Six 150 watt HPS units per block.
Washington.* Various low level 75 watt Mercury
lights for sidewalk.
(Lighting is consistent with downtown lighting practices. Area is part of
Urban Renewal improvements.)
Mid -point of the 500 block of East One 175 watt Mercury from the north
Washington Street.* side.
(Lighting is consistent with North Side Lighting Project.)
The blocks between Johnson and Governor along Washington have very poor
lighting, particularly between Johnson and Dodge. I live out that way and
don't feel very safe walking homelll
East Washington Street at.its intersec- One 175 watt Mercury and two 150
tion with Van Buren Street. watt HPS.
(Lighting is consistent with intersection lighting practice. Area is
part of Urban Renewal improvements.)
East Washington Street at its intersec- Two 175 watt Mercury.
tion with Johnson Street. One 150 watt HPS security light.
(Lighting exceeds current intersection lighting practice.)
On Washington Street by the synagog on Johnson Street, there is a 20 foot
drop. There is a fence about one foot high (metal) broken in some places and
covered with foliage. This was the site of a rape one afternoon this past
summer. If the brush can be cleared and a real fence put in place, the cliff
would be less dangerous - the sidewalk is also leaning.
East Washington Street at Dodge Street. Two 175 watt Mercury.
(Lighting is consistent with intersection lighting practice.)
East Washington Street at Lucas Street. Two 175 watt Mercury.
(Lighting is consistent with intersection lighting practice.)
The blocks between Van Buren and Governor on Washington Street are not
lighted enough. Many students live out this way and 1t needs to be better
lighted. There have been attacks reported in this area.
Need more lights on East Washington Street and around College Green Park
-dark and scary there nowll Also more lights on the street between the
Courthouse and Post Office.
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On Iowa Avenue at the mid -points of
Six 400 watt Mercury units per
the 100, 200, 300 blocks.*
block.
(Lighting is consistent with downtown lighting practice.)
Lights needs to be put on the island
of Iowa Avenue from Clinton to Dodge.
Then people who park their cars can see people who car hide in these areas.
Mid -point 400 block Iowa Avenue.*
One 175 watt Mercury from north
side.
(Lighting is consistent with North
Side Street Lighting Project.)
Lights are needed big time around the
out house sororities. Down Iowa Avenue
after the Credit Union. Lights near
the alley between Iowa and Jefferson,
especially on Lucas.
Mid -point 500 block Iowa Avenue.*
One 175 watt Mercury unit from
south side. .
(Lighting is consistent with North
Side Street Lighting Project.)
Mid -point 600 block Iowa Avenue.*
One 175 watt Mercury unit from
north side.
(Lighting is consistent with North
Side Street Lighting Project.)
On Iowa Avenue at its intersection
Two 175 watt Mercury units.
with Lucas Street.*
(Lighting is consistent with intersection lighting practice.)
On Iowa Avenue at its intersection
Two 400 watt Mercury units.
with Governor Street.
(Lighting is consistent with intersection lighting practice.)
On Market Street at the mid -point
One 400 watt Mercury unit.
of the 600 block.
(Lighting is consistent with North
Side Lighting Project.)
On Davenport Street at the mid -point
One 175 watt Mercury unit.
of the 800 block.
(Lighting is consistent with North
Side Lighting Project.)
On Church Street at its intersection
One 175 watt Mercury unit.
with Clinton Street.*
(Lighting is consistent with intersection lighting practice.)
On Church Street at its intersection
Two 250 watt HPS units.
with Dubuque Street.
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(Lighting is consistent with intersection lighting practice.)
On Brown Street at the mid -point of None.
the 400 black.
(North Side Lighting Project would install one 175 watt mercury unit at
this location. Location was omitted due to conflicts with trees.)
On Dubuque Street at the mid -point One 400 watt Mercury unit.
of the 300 block north.
(Lighting is consistent with North Side Lighting Project.)
On Dubuque Street at the mid -point One 400 watt Mercury unit.
of the 700 block north.
(Lighting is consistent with North Side Lighting Project.)
On Linn Street at the mid -point of One 175 watt Mercury unit.
the 300 block north.
(Lighting is consistent with North Side Lighting Project.)
On Van Buren at the mid -point 100 None.
block south.
(North Side Lighting Project would install one 175 watt mercury unit at
this location. Location was omitted due to conflicts with tree. Tree
has since been removed.)
On Van Buren at the mid -point of the One 175 watt Mercury unit.
400 block north,*
(North Side Lighting Project would install one 175 watt mercury unit at
this location.)
RESIDENTIAL AREA ADJACENT TO THE AREA OF THE NORTH SIDE STREET LIGHTING
PROJECT
PIN MAP SUGGESTION EXISTING CONDITIONS
On Van Buren Street at the mid -point None.
of the 300 south.
(No streets intersect with Van Buren between Burlington Street and Bowery
Street. There are two street lights spaced along the 300, 400 and 500
portion of Van Buren. This is consistent with current lighting prac-
tice.)
On Johnson Street at the mid -point None.
300 south.*
(Lighting is consistent with current street lighting practice.)
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On Johnson Street at the intersection One 175 watt Mercury unit.
of Bowery Street.
(Lighting is consistent with current street lighting practice.)
On Lucas Street at the mid -point of None.
the 300 block south.
(No streets Bintersect
owery Street. Thereare Lucas with
twostreet tlightsreet bspaced along etween nthe n300,r400 and
500 portion of Lucas Street. This is consistent with current lighting
practice.)
On Summit Street at the mid -point of One 175 watt Mercury unit.
the 400 block south.*
(No streets intersect with Summit Street between Burlington Street and
Bowery Street. There is one street light spaced along the 400 and 500
portion of Lucas Street. This is consistent with current lighting
practice.)
On Summit Street at its intersection One 175 watt Mercury unit.
with Court Street.
(Lighting is consistent with current street lighting practice.)
On Summit Street at its intersection One 250 watt Mercury unit.
with Burlington Street.
(Lighting is consistent with current street lighting practice.)
On Reno at the mid -point of the 400 None.
block north.*
(Lighting is consistent with current street lighting practice.)
On Court Street at the mid -point of None.
the 600 block east.
(The 600 block of East Court Street is less than 600 feet. The lighting
is consistent with current street lighting practice.)
On Bowery at the mid -point of the None.
700 block east.
(The 700 block of Bowery Street is less than 600 feet. The lighting is
consistent with current street lighting practice.)
On Burlington Street at the mid- One 250 watt Mercury unit.
point of the 900 block east.
(The 900 block of East Burlington Street is part of the arterial system.
The lighting is consistent with current street lighting practice.)
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On Iowa Avenue at the mid -point of One 175 watt Mercury unit.
the 900 block east.
(The current lighting is consistent with the North Side Lighting Pro-
ject.)
On Hotz Avenue at the mid -point of One 175 watt Mercury unit.
the 1100 block east.
(This block is longer than 600 feet. The existing lighting is consistent
with current street lighting practice.)
On Jefferson Street in the 10 block None.
west.
(This block is less than 600 feet. The existing lighting is consistent
with current street lighting practice.)
On Davenport Street at the mid -point None.
of the 10 block east and the 1000
block east.
(Both blocks are less than 600 feet long. The existing lighting is con-
sistent with current street lighting practice.)
On Fairchild at the mid -point of the None.
900 block east.*
(This block is less than 600 feet long. The existing lighting is
consistent with current street lighting practice.)
On Church Street at the mid -point of None.
the 900 block east.'
(This block is less than 600 feet long. The existing lighting is
consistent with current street lighting practice.)
No lights in middle of block between Burlington and Court.
ARTERIAL STREETS
PIN MAP SUGGESTION EXISTING CONDITIONS
On North Dubuque Street at its Part of system using 250 watt
intersection with Kimball Road. HPS unit.
(The existing lighting is consistent with current street lighting
practice.)
On North Dubuque just south of Part of system using 400 watt
Terrill Mill Park. Mercury unit.
(The existing lighting is consistent with current street lighting
practice.)
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On the Burlington Street bridge.* Three 250 watt HPS on north bridge
and three 400 watt Mercury on south
bridge.
(The existing lighting is consistent with current street lighting
practice.)
On Benton Street at the mid -point of None.
the 500 block of West Benton Street.
(This block is less than 600 feet. The existing lighting is consistent
with current street lighting practice.)
On West Benton Street at its inter- One 400 watt Mercury unit.
section with Mormon Trek.
(The existing lighting is consistent with current street lighting
practice.)
THE RESIDENTIAL AREAS ON THE WEST SIDE
PIN MAP SUGGESTION EXISTING CONDITION
On Bartelt Road mid -way between Mormon One 175 watt Mercury unit.
Trek and Roberts Drive.*
.(The existing lighting is consistent with current street lighting
practice.)
The cul-de-sac of Finkbine Court.* One 175 watt Mercury unit.
(The existing lighting is consistent with current street lighting
practice.)
On Melrose Court at Brookland Park.* One 175 watt Mercury unit.
(The existing lighting is consistent with current street lighting
practice.)
Melrose Court needs improved lighting Brooklyn Park (off Melrose Court) needs
improved lighting.
At the intersection of Grand Avenue One 175 watt Mercury unit.
and Byington Road.*
(The existing lighting is consistent with current street lighting
practice.)
At the intersection of Grand Avenue No City lighting.
and South Grand Avenue.*
(Current street lighting practice would place a street light at this in-
tersection. However, University lighting does exist in the area. There
are difficulties in developing IIGdE service in this area.)
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On Iowa Avenue by the EPB building. Two 400 watt Mercury units in
median.
(Existing street lighting is consistent with current street lighting
practice.)
INSTITUTIONAL LAND AREAS
In the area east of Law College.* Beyond City ROW.
In the Pentacrest. Beyond City ROW.
In the area south of Melrose Avenue Beyond City ROW.
adjacent to the University storage
lots.*
Need lighting in viaduct on Wgashinygton that leads into the parking lot behind
lighting along —Need
0 aryy on Madison bettwieen Washington ande in CollegeEthat whoele
block on the library side of street.
Lighting needs to be much greater on the hill going up to Hillcrest (from the
walking bridge off Newton Street). Also - could use another light in
Brooklyn Park. Thanks.
Lights needs to be put on the island of Iowa Avenue from Clinton to Dodge.
Then people who park their cars can see people who car hide in these areas.
There's a path between the Afro House and Myrtle Avenue leading to Myrtle
parking lot that had sone lighting but not much, and it seems as if same of
them are always burned out. Also need better lighting on Church near the
presidents house.
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City of Iowa City
MEMORANDUM
Flease
e: July 11, 1985
: City Council
: Rosemary Vitosh, Director of Finance�il
Dale Melling, Assistant City Manage
: City Office Space Needs
staff has been reviewing a proposal to prepare a prospectus for new
ce space construction on the Civic Center site, a turnkey project which
be financed with IRBs. However, during a meeting with bond counsel
Tuesday, another lower cost financing alternative was brought to our at -
on. This alternative involves the sale of Certificates of Participation
nance a lease purchase arrangement.
lease purchase agreement, the interest component of the lease payment
by the local government is tax-exempt income for the lessor. In a large
purchase arrangement such as the City's proposed office building, a
rcial bank, specialty lease financing company or underwriter enters into
ease with the government and then sells Certificates of Participation to
interested investors who share in the tax-exempt interest income. The
interest rates on the Certificates of Participation are lower than IRB rates
and will therefore lower the -City's cost for new office space.
This financing alternative would also give the City more control over the
building construction. The 'City would hire an architect to design the
building and bid the construction similar to other City capital improvement
I projects. The City would work with its financial advisor and bond counsel to
prepare a lease purchase agreement and to sell the Certificates of Participa-
tion. A trustee would be -selected who would have control of the Construction
Fund. Net proceeds from the purchase of the Certificates of Participation
will be -deposited in the Construction Fund. The Construction Fund will be
used to
monies remaining insthe ConstructionnFunddafter Payingtallncon tru tiion costs
will be credited to the obligation of the City to pay basic rent allocable to
principal under the lease purchase agreement.
I
This alternative is very attractive for several reasons. It enables the City
to maintain full control over the actual building construction and greatly
streamlines the process as compared to the turnkey alternative previously
discussed. The Certificates of Participation can be sold at a public sale or
through
avbldl; the lnbe
determine
the negotiated
aoaesaesmethod.ThisalterativealsoP ovidefocompetitive
seieicr construction dtf
the City'drctontrol ofthe financing eh5houinteher restrates
decrease or other funding become available to the City in say five years, the
City would have the option to call the Certificates early and restructure its.
financing
fthe act. With a igrluses financing isdoubtfulthat any cost saving financnaternativewlbavailabe to
the lessor to replace their IRB financing in the future.
E
The City's bond counsel recommends pursuing the use of Certificates of
Participation for this project. The recent lease purchase legislation passed
by the state legislature provides the legal authority for this type of
financing. Discussion with an underwriter this week does indicate that a
favorable market now exists for Certificates of Participation. Since the
Certificates are rated in the same manner as G.O. bonds, it is likely that
the City could obtain a very high rating and consequently a very good
interest rate on the Certificates. Our research into this alternative shows
that in all likelihood it presents the second lowest financing vehicle
available to the City for this project. Only G.O. bond financing would be
lower.
This alternative was discussed with the City Manager on Wednesday, July 10,
1985, and he concurs with our recommendation to defer action on the turnkey
project prospectus and, instead, pursue financing with Certificates of
Participation in a lease purchase arrangement. We will be at the informal
meeting on July 15, 1985 to discuss further this financing option with the
Council.
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City of Iowa City
MEMORANDUM
Date: July 11, 1985
To: Honorable Mayor and Members, City Council
From: Richard J. Boyle, First Assistant City Attorney R
i
Re: Newspaper Vending Machines on Public Property
BACKGROUND s
In recent years newspaper vending machines or news boxes or newsracks have
appeared in many more places in the City, both on public and private
property. The appearance of those devices on public property has raised
questions about the appropriateness of regulating them.
The City Plaza has already been treated by ordinance. City Code of Ordi-
nances Section 9.1-7(i) provides that -
"The City will make available, at a reasonable cost, space in the
City -owned newspaper dispenser units on City Plaza. In the case of
more applications than available space, a selection procedure that
is deemed fair, reasonable and appropriate by the City shall be i
established."
There is no city -owned newspaper dispenser on City Plaza, although I j
understand there are newspaper vending machines.
QUESTION PRESENTED
May the City require licensing of newspaper vending machines?
CONCLUSIONS
Yes, if there is factual support for any restrictions imposed in the
licensing ordinance.
DISCUSSION
Although there have been a number of recent cases involving attempts by
i
municipalities and other local governmental agencies to regulate the
location of news boxes, there is no clear guiding principle which may be
derived from those cases. Before discussion of specifics, however, a bit
of background may be helpful.
i
Historically, states have had control of streets and highways, but such
control has generally been delegated to some extent to municipal corpora- i
tions or other public agencies. In Iowa, Iowa Code (1985) Section 364.12
provides that cities are "responsible for the care, supervision and
control of public grounds, streets, sidewalks...and the city shall keep
all public ways, squares, and commons open, in repair, and free from
i
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nuisance...." As a correlary to that power, cities may authorize limited
use of streets or sidewalks, so long as such use does not interfere with
i or obstruct the public's passage or travel.
Municipalities are said to hold public ways in trust for the public and
cannot put them to any use inconsistent with the purposes for which such
public ways were established, and have no implied power to grant priai-
legas t) ,j.) diys F)^ ,private purposes. E.g., Cowin v. City of Waterloo,
237 Iowa 202, 21 N.W.2d 705 (1946), (In the Cowin case, the Iowa Supreme
Court held that the city did not have authority to authorize operation of
a news stand on public sidewalks.) That is, public ways are primarily for
the use of the people as a whole, and cannot be diverted for merely
private or commercial use which unreasonably curtails or interferes with
the public's use. A city has a legitimate interest in preserving access
to buildings and maintaining the normal flow of pedestrian and vehicular
traffic. Dave n ort v. Cit of Alexandria, 683 F 2d 853 (4th Cir. 1982).
It is the fiduciary duty of pu is officials to protect public property
against uncompensated and inappropriate uses.
Such power has also been recognized by the United States Supreme Court.
In Perr Educ. Assn. v. PerryLocal Educator's Assn., 103 S. Ct. 948, 955
(198 the ourt note that, e a private land owner, a state has the
power to preserve the property under its control for the uses for which it
was lawfully dedicated. Since cities are subsidiaries of states, the same
rule would apply to cities.
On the other hand, newspapers are protected by the First Amendment
guaranty of freedom of the press, and that protection extends to distribu-
tion of newspapers. Lovell v. Griffin, 303 U.S. 444 (1938). However,
such protection does not free newspaper companies from all regulations,
nor secure any private property rights. For example, they are subject to
labor laws (Associated Press v. NLRB, 301 U.S. 103 (1936)) and zoning
oun
laws. See, v. American Mini Theaters, 427 U.S. 50 (1976);
Metromedia Inc. v, an a o, 1)). Further, the First
Amendment does not create any right to use the property of others. Board
of Re ents v. Roth, 408 U.S. 564 (1972); Loretto v. 'Tele rom ter—Ffan-
at an orp., 458 U.S. 419 (1982), indeed,
ie First Amendment
Toes not guarantee access to government property simply because it is
owned or controlled by the government." United States Postal Service v.
Greenburgh Civic Assn., 453 U.S. 114, 129 IMF
Faced with the conflicting interests, courts have attempted to formulate
rules for resolving those conflicts. Generally, the Supreme Court has
said that the character of the public property will determine the exis-
tence of a right of access and the standards by which limitations on such
a right must be evaluated. That is, is the property a traditional public
forum? Perr Educ. Assn. v. PerrLocal Educator's Assn., supra; Members
of Cit ount v.Taxpayers or ncent, t. ZiLY, 2134 (1987.
he cases recognize tat states and cities are responsible for important
governmental interests when dealing with public property, relating to such
matters as protection of public health, welfare and safety - including
traffic regulation (Kash Enter rises v. Cit of Los Angeles, 19 Cal. 3rd
294, 303-304, 562 P. , a ptr. 1959), pedes -
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.x.
3
trian use of sidewalks (Davenport V. City of Alexandria, supra), and unob-
structed access to utility poles. In the Taxpayers for Vincent case (I04
S. Ct., at p. 2134) the Court said:
"Public property which is not by tradition or designation a forum
for public communication may be reserved by the state for its
intended purposes, communicative or otherwise, as long as the
regulation on speech is reasonable and not an effort to suppress
expression merely because public officials oppose the speaker's
views."
Stated in another way, the test for validity of a limit on a First
Amendment right (whether freedom of speech or of the press) in a tradi-
tional public forum, such as a street, is whether the manner of expression
is basically incompatible with the normal activity or use of the public
property at a particular time. Grayned v. City of Rockford, 408 U.S. 104,
116 (1972).
If public property is a traditional public forum - such as for example,
the Pentacrest - states or cities may only impose reasonable, content
neutral, time, place or manner restrictions upon exercise of First
Amendment rights, and only if such restrictions are clearly related to a
significant governmental interest, and leave adequate alternative channels
for such communication. Perr Educ. Assn. v. Perr Local Educator's Assn.,
supra United States v. r en, ,
Finally, any such ordinance will not be valid if it vests city officials
with discretion to grant, deny, or delay issuing licenses.
Shuttlesworth V. City of Birminham Ala., 394 U.S. 147, 151 (1969);
Miami Heraldu o. V. o a an a e, 734 F.2d 666, 673 (11th Cir.
1984).
Thus, in evaluating any proposed restrictions on news racks, one must
consider the following:
I. Are the places where the restrictions are to apply "traditional public
forums"? If one can reasonably distinguish between places - that is,
if some are traditional public forums while others are not, a single
ordinance must satisfy requirements applicable to the traditional
forum. In a recent case in Federal court in Arizona, involving a
prohibition on solicitation of occupied vehicles from streets and
sidewalks, it was held that street intersections are not traditional
public forums. ACORN v. Phoenix, 603 F.Supp. 869 (D. Ariz., 1985).
I have found only one case specifically involving licensing of vending
machines upon right-of-way between sidewalks and streets. Plain
Dealer Pub. Co. v. Cit of Lakewood, Okt. No. C83-63, O.C.N.O. �6h�
v. ere t e court a at the streets and highways of
Lakewood, Ohio, are not a traditional *public forum. In such case,
the reasonable time, place and manner restrictions do not apply.
(That case is presently on appeal to the Sixth Circuit.)
II. If a traditional public forum is involved, are the restrictions - (a)
content neutral, (b) reasonable as to time, place and manner, and (c)
clearly related to a significant governmental interest?
i
e,
If the City is interested in licensing news racks, (it is assumed that
interest is not based upon a desire to suppress the publications or
their content) it will be necessary to show that any requirements are
related to a significant governmental interest. Such significant
j governmental interest may include -
1. Aesthetics. Members of City Council v Taxpayers for Vincent,
supra, Metromedia. Inc. v. City of San Diego, supra.
I
2. Southeor rn Connecticut News as ers v e bpublic health
11er
Med L.Rep. 1051
re
3. Nuisances._ Dav�enDoort v. City of Alexandria, supra; Plain Dealer
Pub. Co. v. Lity of �aKewood, su ra.
4. Traffic safety. Metromedia, Inc. v San Diego, supra.
The Second Circuit Court of Appeals recently approved a leasing scheme for
newsracks in commuter railroad stations. Gannett Satellite Inf. Net. v.
Metro olitan Trans Auth., 745 F. 2d 767 r,
note , iowever, t at a newsracks were located in stations and thecourtfound that the public areas of such stations constituted public property
which was not by tradition or designation a forum for public communica-
tion, so the licensing scheme merely had to be reasonable and unrelated to '
the content of the publications.
Further, in City of Lakewood, the evidence disclosed there was home
delivery throughout the community and numerous 24 hour establishments in
which newspapers were sold, thus establishing alternative channels for
such communications.
ost i
Perhaps
notrsuffice.lesson
Intorder learned
sustainfrom
anthe
ordinancesthat newsracks, any restriction in such ordinance must be imposed
because of a problem relating to a significant governmental interest. It
is not enough to merely say there are reasons, there must be factual
support. Further, newspapers must be readily available elsewhere in the
vicinity where limitations are imposed.
/sp
N
ORDINANCE NO.
AN ORDINANCE TO AMEND CHAPTER 31 TO ALLOW USE OF PUBLIC PROPERTY FOR NEWSPA-
PER VENDING MACHINES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
SECTION I. FINDINGS AND PURPOSE.
a. Municipalities hold streets and sidewalks in trust for the public and,
under Section 364.12 of the Iowa Code, cannot allow them to be put to
any use inconsistent with street or pedestrian traffic use. Municipali-
ties have no power to authorize any private use of public ways which
prevents unobstructed use of such ways. Interference with such unob-
structed use is a nuisance.
b. The City Council has discretion to authorize use of City property by
individuals and firms, to the exclusion of the public generally, only for
such consideration as is deemed fair, the same as any other owner of
land, and has exercised that right from time to time, including the
granting of a cable television franchise for consideration.
c. The use of newspaper vending machines is an important means by which
publishers distribute newspapers and other periodicals and by which the
public gains access to the same,. but such machines should be placed on
public property only when such placement does not interfere with the
public's right to have public streets, sidewalks, squares, and common
areas open and free from nuisances and visual clutter.
d. Due to the large number of newspaper vending machines which have recently
appeared in the City, the public property has become cluttered and, at
times, obstructed by such devices, thereby interfering with the public's
rights to have aesthetically pleasing streets, sidewalks, squares, and
common areas, which are open and free from nuisances.
e. It is the intent of this Article that, in order to promote the health,
safety, and general welfare of the population, newspaper vending machines
shall be allowed on public property, but only in places which do not
interfere with the public's right to free and unobstructed use of such
property.
SECTION II. AMENDMENT. Chapter 31 of the Code of Ordinances, relating to
streets, sidewalks, and public places, is hereby amended by adding the
following new Article VIII - PERMITS FOR NEWSPAPER VENDING MACHINES.
Section 31-160. Definitions.
"Public property" shall mean the streets, sidewalks, roadways, squares,
common areas, or other similar property owned by and located within the City
of Iowa City, but for purposes of this Article, shall not include City Plaza.
"Modular newspaper vending machine" shall mean a devise, containing separate
coin-operated compartments, for the sale of more than one edition of newspa-
pers or similar periodicals.
/33/
Ordinance No.
E Page 2
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"Newspaper vending machine" or "machine" shall mean a coin operated, mechani-
cal device utilized for the sale of newspapers and similar periodicals, and
which is not more than fifty (50) inches in height and not more than twenty-
five (25) inches in length and width.
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Section 31-161. Permits Required.
It shall be unlawful for any person, group, firm or organization to use any
portion of public property for a newspaper vending machine without first
having obtained a newspaper vending machine permit for use of such property,
and displaying such permit on the machine. Nothing contained herein shall be
j deemed to prohibit the placement of modular newspaper vending machine units
on public property either by the City, or with the consent of the City.
Section 31-162. Standards for Location of Newspaper Vending Machines on
j Public Property.
A newspaper vending machine may be located on public property only in such
places and manner that it does not cause any obstruction to the public's free
and unobstructed use of such property, or impede the free flow of pedestrian
or vehicular traffic in or out of a building. Specifically, no newspaper
- vending machine may be placed, used, installed or maintained:
(a) Within five (5) feet of any fire hydrant or other emergency facility;
(b) Within five (5) feet of any intersecting driveway, alley, or street;
(c) Within two hundred fifty (250) feet of another newspaper vending machine
containing the same newspaper or news periodical;
(d) At any location where the width of paved clear space in any direction
for the passageway of pedestrians is reduced to less than six (6) feet;
or
(e) Attached to any traffic or directional signpost, utility pole or wire,
or other public amenity.
(f) At any location which interferes with or impedes access to any building
abutting public property.
I Section 31-163. Application - Generally.
a. An application for a newspaper vending machine permit, containing the
information required by the terms of this Article, may be filed with the
City Clerk by any person, group, firm, or organization desiring to locate
one or more newspaper vending machines on public property. An applica-
tion may include one or more newspaper vending machines the applicant
wishes to locate on public property, but a separate permit shall be
issued for each such device.
b. Applications for the original issuance of newspaper vending machine
permits for newspaper vending machines currently located on public
property shall be filed within sixty (60) days of the effective date of
this ordinance. Applications for additional or new permits may be filed
/33/
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Ordinance No.
Page 3
at any time. All applications shall be in such number of copies and in
such form as may be prescribed by the City Clerk, and shall be accompa-
nied by the required fee and evidence of the required liability insur-
ance.
Section 31-164. Application - Contents.
a. The application form for newspaper vending machine permits shall, in
addition to such other information as the City Clerk may deem necessary,
contain the following information:
1. Name and address of the applicant, and the address to which notices
under this Article shall be sent.
2. The location or locations at which the applicant desires to locate
each newspaper vending machine.
3. A statement that the applicant shall indemnify and hold harmless the
City from and against all claims for damages which in any way relate
to or arise from the use or location of a newspaper vending machine
on public property.
b. The application shall be accompanied by evidence of liability insurance
(either a copy of the policy or of a binder of insurance) purchased by
the applicant for the protection of the public, with coverage limits of
one hundred thousand dollars ($100,000) per person, and three hundred
thousand dollars ($300,000) per occurrence for bodily injury, and
twenty-five thousand dollars ($25,000) for property damage, which policy
shall name the City as an additional insured and shall indemnify, save
harmless and defend the City from any and all damages, judgments, costs
orexpenses which the City may incur or suffer. Such policy shall
provide for thirty (30) days notice to the City Clerk of cancellation or
material change.
Section 31-165. Fees.
The City Council shall, by resolution, set the amount of fees to be submitted
with the permit applications. Such fees shall be based upon the City's
out-of-pocket expenses related to processing applications and issuing
permits, inspecting and enforcing this Article, and responding to complaints.
Until superseded by a resolution setting fees, the initial fee shall be ten
dollars ($10.00) per machine per location per annum.
Section 31-166. Issuance of Permit.
Following receipt of properly completed applications, the City Clerk shall
promptly issue permits for newspaper vending machines meeting the standards
set forth in Section 31-162. Such permits shall be in the form of decals
with adhesive backing, and shall be displayed on each machine. The City
Clerk shall approve applications with respect to those machines meeting the
standards set forth in Section 31-162 and which include the appropriate fees
and evidence of insurance.
SJ
Ordinance No.
Page 4
Section 31-167. Nature and Scope of Permit,
A newspaper vending machine permit shall be revocable for cause. It shall
not constitute property nor be subject to attachment and execution, nor be
alienable or assignable. A permit shall only relate to the machine or device
and location for which it is issued. No machine for which a permit is issued
4 ! hereunder may be moved to another location on public property unless the
permit application is first amended to reflect the new location, and the City
Clerk determines that such location satisfies the requirements of Section
31-162.
Section 31-168, Term of Permit.
Newspaper vending machine permits shall be valid for a period of one year
from the date of issuance. Absent a material change of circumstances
relating to a machine, permits shall be automatically renewable upon payment
of the applicable fee.
Section 31-169. Denial or Revocation of Permits - Grounds Effect.
The City Clerk shall make the initial determination as to whether a newspaper
vending machine permit shall be denied or revoked, in whole or in part, for
any of the following reasons:
1. Misrepresentation of any material fact in the permit application.
2. If the location of a newspaper vending machine, in fact, causes any
obstruction to the public's use of the right-of-way upon which a machine
is or is to be located.
3. If the machine is attached in any way to a traffic or informational sign,
or to any utility pole or wire, or any public amenity.
4. Failure of the permittee to maintain in force the insurance required
under Section 31-164b.
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Section 31-170. Notices and Effect of Denial Revocation or Non -Renewal of
j Permit.
Notice of action denying or revoking a permit shall be mailed, postage
prepaid, by certified mail, return receipt requested, addressed to the
permittee at the address for notices shown in the permittee's application,
and shall be deemed to have been received three (3) days after the date of
mailing.
If an original application for a permit for a machine currently located on
public property is denied, or if a newspaper vending machine permit is
revoked, the owner of such machine shall have seven (7) days from the date of
receipt of notice of the action denying or revoking such permit within which
to remove such machine from public property. Further, any machine for which
a permit is not renewed by the owner shall be removed from public property no
later than seven (7) days after expiration of the permit. If the machine is
not removed within such seven (7) day period, the City may remove such
1 /33/
Ordinance No.
Page 5
machine and assess the cost of such removal against the owner of the newspa-
per vending machine. However, no machine may be removed while an appeal is
pending under Section 31-171.-
Section
1-171.Section 31-171. Appeal and Hearing.
The right to a hearing before the City Manager shall be afforded to a
newspaper vending machine permit applicant whose application is denied, in
whole or in part, or to a permittee whose permit is revoked. Any applicant
or permittee who is aggrieved by a decision denying or revoking a newspaper
vending machine permit may, within seven (7) days of such decision, request,
and shall be granted, a hearing which shall be conducted in the manner
provided in Section 2-186 of the City Code of Ordinances.
SECTION III. REPEALER: All ordinances and parts of ordinances in conflict
with the provisions of this ordinance are hereby repealed.
SECTION IV. SEVERABILITY: If any section, provision or part of the Ordi-
nance sha be a udged to be invalid or unconstitutional, such adjudication
shall not affect the validity of the Ordinance as a whole or any section,
provision or part thereof not adjudged invalid or unconstitutional.
SECTION V. EFFECTIVE DATE: This Ordinance shall be in effect after its
final passa_9_e;_a_p_p_r_ov_a_T-an-F pub Iicat ion as required by law.
Passed and approved this
ATTEST:
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1331
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City of Iowa City
MEMORANDUM
Date: July 9, 1985
To: Bob Jansen, City Attorney
From: Patt Cain, Associate PlannerQv
Re: Draft Ordinance Regulating Newspaper Vending Machines on Public
Property
At its meeting of July 3, the Design Review Committee discussed the draft
ordinance for regulating newspaper vending machines on public property.
The Committee limited its discussion of the proposed ordinance to those
issues that would affect placement of newspaper vending machines in the
downtown area; the Committee did not discuss the permitting system or fees
included in the ordinance as Con Mi tee members considered these matters
outside their purview.
Comnittee members concurred on three basic recommendations in regard to
the draft ordinance:
1. The definition of newspaper vending machine in Section 31-160 should
be expanded to include the placement of banks of modular vending
machine units.
2. In Section 31-162b, a section should be added to allow placement of
newspaper vending machines arranged for pedestrian traffic in the
downtown area. The Committee agreed that in areas of considerable
pedestrian traffic desirable locations for newspaper vending machines
might be adjacent to buildings or landscaping features rather than
within 24 inches of the curb.
3. Especially in the City Plaza and also within the Central Business
District (bounded generally by Iowa Avenue, Linn Street, Burlington
Street and South Capitol Street or Madison Street), the Committee
would like to see specified locations for newspaper vending with banks
of vending machines provided by the City. The locations for these
units should be chosen in consultation with newspaper distributors and
the Design Review Committee. This recommendation is consistent with
one made by the Committee several years ago when it recommended that
newspaper vending machines should be uniform and grouped together in
appropriate locations. (An excerpt from the minutes of a 1981 Design
Review Committee meeting is attached.) The Committee also recommended
that the City assure the upkeep of the banks of vending machines in
the downtown.
If the City Council is amenable to having newspapers vended from
City -owned banks of machines in the downtown area, the Committee offered
to look into the types of modular machines that are available and make
recommendations regarding their placement, design and structure.
tp2/2
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FROM: DRC Minutes
2 May 13, 1981
of these plans. She expressed concern that the plants located in the City Plaza
should be heat tolerant due to the amount of heat -radiating materials in the
area. Chiat stated that these plans would be sent to Gretchen Harshbarger for
her review and comment. Chiat said these plantings probably would be installed
next fall.
The Caw ittee indicated general approval of these plans, subject to the
consideration of review of plantings and placement of an additional number of
trash receptacles on the Plaza.
NEWSPAPER DISPENSERS
Chiat presented copies of material an newspaper dispenser styles and a diagram
showing potential locations for the dispenser units. The Committee agreed with
the proposal that a large dispenser for four to six different newrson Building to replace the
spapers should
be sited in the planter opposite the Jeffe
individual racks by the Jefferson Building. Several damaged plantings in the
Planter would be removed and replaced with additional that would
shrubs
compliment the dispenser unit. The unit would be painted YanrubsDyke grown, The j
Committee suggested that if a second dispenser unit was required, it should be
smaller and located on College Street. The Committee wanted to know if the i
'alcove in front of Hardee's could be used. Chiat indicated that an agreement
would probably be necessary because the alcove is on private property. A second
alternative location on College Street near the Clinton Street entrance to City
Plaza was then suggested.
The issue of who would pay for the dispensers and maintainance was raised.
their interestestedin usingrtheould be dispensernt to unitsth Chiat said he woent uldecantinue work
on the issue.
Seiberling asked if the storage mailbox by the Washington Street entrance of the
She City Plaza could be relocated in a more accessible location for the mail truck.
also wanted
consumeroknow if a d op mailboxes were
in the kioskut on heChiat replied that he would
contact the Postal Service with these suggestions.
APPOINTMENT OF NEW MEMBERS
At the April 21, 1981 City Council meeting, two vacancies for the Design Review
Committee were announced. These positions will be filled at the June 2, 1981
City Council meeting.
Meeting adjourned.
Prepared by: Afire uer L
drea suer
Planner/Program Analyst
1332
parks & recreation
department
MEMO
to; Parks and Recreation Commission
from; T. Allen Cassady, Acting Director
re; State Sales and Use Tax
date: July 5, 1985
The attached response from the office of the State Department of Revenue
attempts to interpret the broad language of the new 4% state tax law imposed
on cities and counties for participation in sport activities.
Please find below an illustration of the effect of
various or the
organizations that sponsor sports activities, new tax law on the
Youth S orts Teams
Litt a League aseball (no tax); Boys Baseball Association; Little League
Soccer (no tax); Iowa City Kickers; Little League Flag Football (4% tax);
City operated Jr. High School Intramural Basketball (no tax);-School District
High School Intramural Basketball (4% tax); City operated 4th, 5th,
Grade Intramural Basketball (4% tax). and 6th
Public Swimmin
Kent ark tax) - County
Field House (no tax) - University
Lake Macbride (no tax) - State
City Park (4% tax) - City
Des Moines High Pool (no tax) - School District
City/School Joint Pool (?) - Joint Management
Adult Tournaments
I iee en Softba ournament - Hawkeye Sports Complex (Lower Finkbine) -
Weekend Softball iTournament ty d- Mercer or Napoleon Park - 4% tax - City operated.
Adult Lea ues
Iowa City G ris Softball Association League - no tax.
City of Iowa City Softball Leagues - 4% tax.
University Softball League - no tax.
Church Softball League - no tax.
A slow pulling away from City affiliation and co-sponsorships may occur among
our community organizations. School or University program leadership will be
ateaptimeer nwhen manythe rvolunteersorganizationsof this nare scalling for istent tlIncreased Profes-
sional Ofsomersportsigroupsdandhensureethatnall participants haveofun an
rules of fair play. dilearnhthe
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city of iowa city
■
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Parks and Recreation Commission
July 5, 1985
Page two
A majority of the season swimming pool pass revenue had been collected in
May and June. As a result of the difficulty recently experienced in collect-
ing pennies, I am now recommending including the 4% tax charges for daily
swimming pool admission in the charge. This will mean a fee increase will
be necessary this fiscal year as a result. This increase must occur during
this fiscal year in order to recover revenue funds that will be lost in
reducing our daily fees to accommodate the present coin charges.
cc: Neal Berlin, City Manager
City Council
/333
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City of Iowa City
MEMORANDUM
QATTt July 11, 1985
TO., Iowa City - City Council
Few: City Clerk
REs Beer/Liquor License/Conditional Approval
FOR YOUR INFORMATION -- Conditional approval was given at the
2/12/85 Council meeting to Ye Old Keg Shoppe, 1910 S. Gilbert
Street for Sunday Sales/Beer Permit. They have submitted
after the 90 -day period, the required information which allows
them to retain their license..
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City of Iowa City
MEMORANDUM
QATTt July 11, 1985
TO., Iowa City - City Council
Few: City Clerk
REs Beer/Liquor License/Conditional Approval
FOR YOUR INFORMATION -- Conditional approval was given at the
2/12/85 Council meeting to Ye Old Keg Shoppe, 1910 S. Gilbert
Street for Sunday Sales/Beer Permit. They have submitted
after the 90 -day period, the required information which allows
them to retain their license..
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MINUTES OF STAFF MEETING
July 3, 1985
The City Manager advised that the merit increases for the staff which
were submitted through the Human Relations Department hav been approved.
Review of the merit increases for department heads will be completed
upon the return of the City Manager.
Dale Helling will be Acting City Manager during the absence of the City
Manager.
The City Manager referred to a recent memorandum concerning a proposed
administrative procedures ordinance. He advised that this ordinance will
not be presented to the City Council for approval for some time. He asked
the staff to review the proposed ordinance and advise if they have recom-
mendations.
The City Manager informed the staff that John Lundell will be working on
the proposal for the building extension. Shive-Hattery will be taking
borings in the parking lot on Monday; the City's bond counsel is preparing
a draft contract; and Newmann Monson is preparing the specifications.
These specifications will serve as a standard for the bidding. The request
for proposal should be completed by the end of July. Letters are going
out to anyone who might be interested in bidding - architects, engineers,
contractors, financial institutions.
The City Manager mentioned the problem of having phones answered promptly.
Calls should be forwarded to the operator if no one is in the department
to answer the phones.
The staff was advised that the City Council wishes to discuss early in
the fall the issue of where the budget is going next year. That issue is
complicated by the rising insurance costs and the Fair Labor Standards Act.
The department heads are to compile an outline of items which should be
brought to the Council's attention at that session.
The City should have a report back from Metcalf and Eddy and Arthur Young
early in August.
During the City Manager's absence, the Acting City Manager will keep the
weekly appointments with department heads.
PPrrjgpared by-
e7-
Lorraine
y:<-Lorraine Saeger
/33s
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MINUTES OF STAFF MEETING
July 10, 1985
Items for the agenda of July 16, 1985, will include:
Setting public hearing for July 30 on rezoning of Braverman's property
Public hearing on disposition of an alley to John Harper
Public hearing on two amendments to the Sign Ordinance regarding
facia signs and development signs
First consideration of an ordinance regarding Vista Park Village
First consideration of an ordinance adopting revised maps and flood
insurance study
Second consideration of an ordinance revising notice requirements
for the Board of Adjustment
Resolution approving final plat of Kennedy's Waterfront Addition
Public hearing on Asphalt Resurfacing Project
Resolution approving plans, specifications, form of contract and cost
estimate for Asphalt Resurfacing Project
Public hearing on the alley paving assessment project
Award contract to Wolf Construction for the Sidewalk Assessment
Project
Recommendation from Parks and Recreation Commission regarding
swimming pool renovation
Final consideration of ordinance prohibiting the deposit of dirt, mud
and debris on public right of way
Final consideration of an ordinance relating to peddlers and solicitors
The Assistant City Manager, reminded the staff of the scheduled visit by
Bonnie Prior from the Institute of Public Affairs. If any department has
problems with the time and date, the City Manager's office should be
notified.
Prepared by:_�/G/�
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Lorraine Saeger
■
13 3S I
CITY OF IOWA CITY
CITIZEN INPUT SURVEY QUESTIONNAIRE DATA
MONTH OF M,y 1QR5
NUMBER OF QUESTIONNAIRES MAILED 275
NUMBER OF RESPONSES RECEIVED 85 8.7 %
NUMBER OF REQUESTS MADE WITHIN THE PAST YEAR FROM THE FOLLOWING DEPARTMENTS:
Animal Control 11
City Manager 3
Code Enforcement 7
Finance 1
Fire 0
Forestry 7
Housing Inspection
Civil Rights 3
Library 16
Parking 1
Parks 5
Personnel 0
Planning 0
Police �T—
Pollution Control
Recreation T
Refuse 12
Streets 4
Transit_ 2
Water _ 8
WAS YOUR REQUEST HANDLED
Immediately 42 71 %
Within one week 12 10 %
Within one month 2 -ir%
Longer 2 =%
WAS THE RESULT SATISFACTORY?
Yes 50 84 %
No = _IL%
WERE CITY EMPLOYEES COURTEOUS?
Yes 54 98 %
No 1 2 %
WHAT IS YOUR GENERAL REACTION TO CITY SERVICES?
Very good 37 44 %
Good = —dw%
Acceptable 7d- =%
Poor ---r =%
13,3
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WHAT ONE THING WOULD YOU CHANGE ABOUT THE IOWA CITY GOVERNMENT?
Better snow removal. Plow the street to full width, two lanes. This would
require no extra money if effective. Full width passes are made with the initial
snows. - Inconsistencies in garbage rules for pickup. We had troubles getting
bundles of 1# foot bundles of branches tied. Neighbor's 8{ foot drain pipe removed
at once. - Police on foot as well as in cars. - Street cleaning crews should not
block private drives with snow. - Less government, les property taxes. Policies favor
developers over citizenry. Should be reversed. - Eliminate street storage ordinance
as it encourages the use of cars. - Try to control trespassers. - Garbage collection
twice a week. - Better water pressure. - Combine departments to cut administrative
costs. - Improve the taste of the water. - Do not raise refuse or garbage rates
again. - A divorce of city government and the developers. - Quality of sewage I
disposal. - Keep streets cleaner and cut trees in ditches and by bridges. - Reduce
downtown parking meter rates or at least those at the Rec Center and Chanucey
Swan. - Garbage rates too high. - Control traffic on Morningside to protect the
children. - Better management in recreation. - Let the user of services pay the
services. - The real estate/development special interest have too much influence. -
Enforce parking on sidewalks and street storage. - Reduce downtown parking fees.
What is the parking violation policy? - Too many construction vehicles on Lincoln
Avenue. - Decision-making takes too long. - Computer terminals slow due to not
enough of them. Prefer the old card method. - A personal response when a service is
not carried out explaining why no action taken. - Why five city vehicles were seen
at one restaurant coffee hour. - Some of the Council believing that cost is the
only measure of value. - Design sidewalks or paths for bikes. - Teach courtesy
in regards to traffic rules so protect pedestrian crosswalks, walk lights, yellow
lights, etc. - Snow plow to come to Crestwood Circle before he does everyone in
town. - Do not charge refuse when a person is not residing in the house for several
months of the year.
WHAT SERVICES SHOULD BE REDUCED OR ELIMINATED AND WHY?
Library overstaffed with bureaucrats. - Parks. - Jogging path in city park
maintained better than any street. - Some bus runs that have few or no passengers
at times. - Weed control. - Do not assess a 1% franchise fee on Iowa Illinois.
It would just be another tax that would be passed along to the consumer. -
The City Planning Department because of some of the things they have let happen or
even encouraged. - Street crews standing around not working should be eliminated. -
Forestry. Project GREEN and owners encouraged to do their own. - We have insufficient
information to have an opinion. - Empty buses running around town.
WHAT NEW SERVICES WOULD YOU LIKE OR WHICH EXISTING SERVICES WOULD YOU IMPROVE
OR EXPAND?
More parks, more letter pick-up stations downtown, and protection/respect for
women who are raped within this city. - More bike paths. - Animal control, increased
evening hours, apprehend the numerous dogs that people walk and exercise at
Shimek School. Do not allow them to be off the leash and roam enroute to the
school yard. - Would expand code enforcement. - More police, street lights and
enforcement of the noise ordinance. - Sunday bus service. - Expansion of street
repairs. - Riverfront improvements. - More help with trash pickup. - Improve or
expand Civil Rights. - Street cleaning for bicyclists. - More funds for expanded
facility and program for Animal Control people and more people in the control. -
Expand recreation, streets, planning and zoning. - More police protection and
expand parks.
133E
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WHAT SERVICES WOULD YOU LIKE OR WHICH EXISTING SERVICES WOULD YOU IMPROVE OR
EXPAND? (continued):
A larger police force. Crime is on the increase in Iowa City. - Work done on
Ralston Creek Branch between Washington and Court Streets. Would benefit
several and, I can't speak for all, but some would be glad to share in the cost. -
Fix potholes if not too costly. - Expanded hours for indoor pool at Rec Center,
especially on Sunday AM. - Expand hours at library especially on Sunday. - More
parks. - Sunday bus service and year-round Sunday hours for the Library. - SEATS
van needs a bar to help people with crutches. The seats being high and if the
person has a bad leg, it is hard to get up the narrow steps.
HOW WOULD YOU PAY FOR THESE CHANGES?
Taxes. - I wouldn't help pay if I could help it. - Park and road allocations;
bike licensing citizens. - Any way except higher property taxes. - Taxes. -
As part of general tax increase. - Any changes should be taken up with the City
Council and the payment for same. - Additional user fee plus tax increase. - Cost
savings by eliminating some administrative costs. - Federal grant. - Fewer
administrative costs'. Too many well paid "chiefs and not enough "indians". -
Greater commitment which doesn't cost. - Higher fees for adult recreation. -
More tax money shifted to streets. - Property taxes. Property seems to be the best
proxy for who benefits from this. - Parks could rely more on user charges, picnic fees,
etc. - Distribute the property taxes more equitrably. Too much of the tax money goes
for schools. - Don't want to pay anymore for these. - Assessment to affected property
owners. - Property taxes. - Change in taxes. - Increased taxes. Willing to pay for
governmental services; do not want fees/charges everytime I need to use a service. -
Drivers (of SEATS) should remind riders about donations.
WHAT DO YOU LIKE BEST ABOUT THE IOWA CITY GOVERNMENT?
The caring attitude. Willingness to help. Assessability, cooperation with the
community. - Involved. - Getting the job done after the decisions are made. - Very
efficient. - Library, recreation services, particuarly citizen responsive. - Working
well. - The courteous way in which the majority of the City Council has handled
our neighborhood request for the downzoning of a certain adjacent property. -
Responsive input. - Cost savings. - Efficient. - Transit and refuse. - Berlin
does an excellent job, and I hope we can keep him. - If increased pay would
improve the quality of people running for City Council (and I am not suggesting
the quality of all is low) I'm for it. - They do an excellent job with what they
have. - Generally, it seems to work. - Good services. - At least some citizen
input. - Parks. - Variety and balance of services. - Some fine people work there.
They try. - Good City Manager, well managed departments, good public servants. -
Excellent library, Recreation department and Senior Center also outstanding. -
Transit drivers are great. - Never having had any problems, what can I say? -
Responsive to community needs. - We feel as if the tax money is spent carefully
to benefit the most people. - Dependable. - Pleasant place to live. - Library services,
parks, recreation, transit.
WHAT DO YOU LIKE LEAST ABOUT IOWA CITY GOVERNMENT?
The big business it has turned into but that is no fault of any one person or
department. - High taxes. - Its socialistic tendencies. - Increasing property
taxes to fund projects. The taxation burden should be shared by all people in
the city. - Too many regulations. - No complaints. - Indecision on some issues. -
Marriage to developers and over zealous idealogy of police not administered equally. -
/ 3,3L
WHAT DO YOU LIKE LEAST ABOUT IOWA CITY GOVERNMENT? (continued)
Its commitment to soaking the maximum amount possible from its citizens in
Parking meter rates and parking fines. Thirty -minute meters rather than one
hour ensure fine revenues for the city, and one meter maid in particular is
discourteous, hostile and vindicgive and is notorious among downtown workers.
Excessive influence of real estate special interests. - Nothing. - We are
probably over -governed; example, noise ordinance. - Not enough attention paid
to the effects of development which affects quality of life for residents. -
No strong negatives except for negative focused council members (some). -
No complaints. - Urban renewal decisions toward the mall and squeezing out
little overhead businesses, cottage industries. - Parking is terrible.
OTHER COMMENTS:
It takes too long to repair and restore the ground after a repair in the
water division. Both our neighbors across the street had their sidewalk ripped
up and the water pipes repaired. They waited the whole summer season to
have the sidewalk repaired and the grass relaid. Meanwhile all our kids
in the neighborhood played in the mud and cement you left. - Zoning ordinance
should bar parking, storing all recreational vehicles in front of homes,
including home driveways. - Messy cottonwood tree in the area should be
removed as it makes a mess every spring. - Joggers and people on bicycles
should be made to wear reflective clothing in early morning hours. Can't
see them against street lights when driving. Dangerous! - Advertisers
should not be allowed to put fliers under windshield wipers. They damage
the wipers. - Everything is great. - Surveyors working on back of my lot
and not informing if the project is related to my property; fence and bushes
could be affected by a possible project. - Keep up the good work[ -
Why, Why, do we have an ordinance requiring 1} parking places for apartments
under 800 square feet and 2 parking places per apartment over 800 square feet,
and then allow a big high rise that will house many people and need many parking
spaces per unit to be required only 1 space perunit. Crazy, man, crazy. Yet
this is what I have been told is the law. WHY?? - We can't complain about
Iowa City's servicesl Perfectl - I would like to see a city sales tax so
students and University visitors pay for streets, snow removal, parks, etc.,
since we now pay their share and they use everything for free or at a reduced
rate. - A need to restrain dogs and cats that run loose. Suggest a fine for
cats which run loose to correct the matter. - The City needs to follow through
on its expressed policy to have sidewalks on at least one side throughout
the city. Most particularly, they are needed on Wolfe and Newton approaching
the Arena. It is a dangerous and inconvenient situation, especially in rain
or snow. The University is also remiss in failing to provide sidewalk on
south side of Newton Road near the Arena. - Consolidations: forestry and
parks; code enforcement and housing inspection; pollution control and water;
finance and planning. - I like living in Iowa City. Perhaps more exchange of
services with the University. - Greater consideration to the refuse crew
concerning weather conditions. When weather reaches extremes in wind chill or
heat, their health should be more of a priority than our garbage. - I would
like to commend our refuse collection department. They are always prompt and
thorough. - I live on an alley and I wish that the garbage truck would come
down the alley so I wouldn't have to haul the trash all the way to the street. -
We are not opposed to development; we are in favor of developers bearing the
costs of development including water treatment, park space, etc. After all,
they'll get the profits, so why should taxpayers subsidize them. - We are
very happy with Iowa City and the government. - We feel that property owners
/33G
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OTHER COMMENTS (continued):
have a heavy tax burden. Couldn't there be some.source of revenue from the
thousands of persons who rent houses or apartments and use the same services
as the property owner? Many senior citizens are taxed out of keeping their
homes. - I would like mail service to my door. What do I do? Petition the
Postmastohe way it looks and the kind of
pleasanter o
sophisticated,secureylifevittProvides, enjoy the downtown with
its well -trimmed trees and lovely flowers. The people who walk there
seem to be happy. - Watch out when making decisions regarding swimming
facilities. - Library, parks and transit are services I use often and find to
reallybe
superior in
expandahours forNeeto animal control fralfltherparking tickets more
were collected, the City would be rich. 'I have seen as many as six tickets on
one windshield and around University buildings. The walks are littered with
them. No wonder young people laugh at authority. We who own property have
to pay or suffer. - We feel the refuse department does a very good job.
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OTHER COMMENTS (continued):
have a heavy tax burden. Couldn't there be some.source of revenue from the
thousands of persons who rent houses or apartments and use the same services
as the property owner? Many senior citizens are taxed out of keeping their
homes. - I would like mail service to my door. What do I do? Petition the
Postmastohe way it looks and the kind of
pleasanter o
sophisticated,secureylifevittProvides, enjoy the downtown with
its well -trimmed trees and lovely flowers. The people who walk there
seem to be happy. - Watch out when making decisions regarding swimming
facilities. - Library, parks and transit are services I use often and find to
reallybe
superior in
expandahours forNeeto animal control fralfltherparking tickets more
were collected, the City would be rich. 'I have seen as many as six tickets on
one windshield and around University buildings. The walks are littered with
them. No wonder young people laugh at authority. We who own property have
to pay or suffer. - We feel the refuse department does a very good job.
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City of Iowa City
MEMORANDUM
DATE: June 28, 1985
TO: City Council
i
FROM: City Manager
RE: Material in Friday's Packet
1 i
Memoranda from the City Manager:
a. Industrial Revenue Bond Policy 33
b. Property and Liability Insurance Renewal
c. Administrative Procedures Ordinance
d. Treatment Plant/Sewer Study
a. Parking System - Reserves
f. Southwest Tripper and Bulk Rate Passes
g. Utility Franchise �3
Invitation to a neighborhood party on June 30, 1985. /3
Articles: -
a. EPA orders halt to Iowa sewage plant
b. Red Oak gets EPA OK to launch treatment plant construction
Calendar for July 1985 /311-7
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Ltr. from %like Skinner of the III Student Senate City Lighting Project 1347a
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City of Iowa City
MEMORANDUM
Date: June 28, 1985
To: City Council
From: City Managerr�--
Re: Industrial Revenue Bond Policy
Enclosed are the June 1984, IRB Policy recommendations from the IRB Staff
Review Committee. The staff will meet again in the next 60 days to review
the recommendations. The Committee will consider the impact of changes in
the Federal tax regulations last year to determine if the Committee recommen-
dations should be modified.
/sp
City of Iowa City
MEMORANDUM
Date: June 29, 1984
To: City Council and City Manager
From: IRB Staff Review Committee
Re: Staff Review of the IRB Policy
The Staff Review Committee has reviewed the IRB Policy and now submits the
attached revised policies and application packets for your review. Those
serving on the Staff Review Committee were Andrea Hauer (Department of
Planning and Program Development), Dale HelIing (Assistant City Manager),
Bob Jansen (City Attorney), Lyle Seydel and Doug Boothroy (Department of
Housing and Inspection Services) and Rosemary Yitosh (Department of
Finance):
Please note that a Congressional Conference Committee has finalized a
compromise bill that deals with IRB regulations and is currently being
considered for approval by the House and the Senate. Although approval is
expected soon, it may take some time to interpret the final legislation.
Therefore, the Committee recommends that the City Council consider
deferring any final decisions on the IRB Policy until the impact of the
new legislation is known. Two members of the Staff Review Committee will
be attending a seminar on the new legislation on July 11, 1984. This
seminar is being coordinated by the National League of Cities and is a
briefing session on the new Tax Reform Act.
The current Policy and application packet is attached as Exhibit A. It
was originally written to apply to all types of projects. It included
individual policies for two types of projects - commercial projects and
industrial projects (Sections I -E and I -F, respectively). The commercial
projects cover those projects permitted by the Urban Revitalization Act
which includes housing projects. Since housing projects serve different
public purposes than commercial projects, a separate policy for housing
projects has been needed.
It was also necessary to modify the application form. The original
application form was used for all types of projects and was often confus-
ing to applicants because all items on the application form were not
applicable to all projects. Therefore, a separate policy and application
packet has been developed for each type of project. Those are attached as
Exhibit B (Commercial Projects), Exhibit C (Industrial Projects) and
Exhibit D (Housing Projects).
All policies include the statements that "it is the City's intention to
issue IRBs to serve the public purposes described herein for the overall
benefit of Iowa City. It is not the City's intent to issue IRBs solely to
decrease the cost of the project." The public purposes originally listed
for each type of project were to be used as guidelines for determining the
project's overall benefit to Iowa City. They were not absolute require-
ments and each project did not have to meet the guidelines of every public
J
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purpose to be considered in the best interests of the City. In the past,
the City Council's decision on whether to issue bonds has been based upon
whether the project has met sufficient public purpose guidelines which
demonstrated the project's benefit to the City.
The Staff Review Committee considered the inclusion of mandatory require-
ments for IRB -funded projects. These requirements would be applied to all
projects or determined on an individual basis by Council. Such require-
ments would be written into the loan agreement between the City and the
project owner. These requirements, or conditions, would then have to be
monitored for compliance over the term of the bonds. It would also bz.
necessary to include some sanctions in the loan agreement should
non-compliance occur.
Compliance monitoring could be handled by either the City (a compliance
officer could be appointed) or the trustee. In all IRB issues, a trustee
is appointed who is responsible to coordinate the release of funds as
construction occurs, the receipt of loan payments from the project, the
payment of principal and interest on the bonds and monitor compliance with
the conditions of the loan agreement. The trustee's fees are paid by the
project owner.
The Committee does not recommend the use of mandatory requirements which
would be applied to all IRB projects -for four reasons. First, such re-
quirements create the need to monitor compliance over the term of the
bonds. This could extend up to 20 or 30 years and could be very costly to
administer. Either the City or the trustee could assume the task of
monitoring. This, in itself, could be handled, but what could signifi-
cantly increase the time spent in monitoring is the followup and investi-
gation on complaints of non-compliance. With the proposed federal limit
on the amount of IRBs which can be issued, Iowa City may find itself, in
the future, issuing IRBs on a competitive basis. This means that the City
may be selecting from among several applicants for bond issues, it is not
difficult to imagine that some applicants who don't get the IRBs will be
watching those who do for any signs of non-compliance. The monitoring has
the potentiai to turn into a costly, administrative nightmare.
Second, the monitoring of compliance alone is not sufficient. Sanctions
or penalties must be provided for noncompliance. Monetary penalties or
the acceleration of repayment of the bonds could be used. Collection of
Enforcing the enalties or accelerated
sanctionsdcoyuldeequints creullitigatibe o to prove thatsome
contrac-
tual agreement had been violated. The City cannot threaten the loss of
the bonds' tax-exempt status since that is determined only by the Internal
Revenue Service's regulations. It would be extremely difficult to come up
with penalties that were effective without being overly severe or diffi-
cult to impose. The potential of penalties may affect the marketability
of the bonds.
Third, the more the City is involved in monitoring the operation or
construction of a project, the greater the potential liability which may
be assumed by the City. in our lawsuit -happy society, the City is a
prime target if the slightest thread of responsibility can be found in
property damage or bodily injury cases.
/3,77
Fourth, the IRB process is now regarded as being complex and full of red
tape. The addition of mandatory requirements and penalties could serve to
further discourage applicants and potential development. The difference in
interest rates for conventional financing versus IRB financing has
narrowed, making the cost savings less for IRB financing. Mandatory
requirements and penalties may serve to lessen the benefit/savings even
further and discourage potential development. If a project provides some
benefit to the community, that is better than if the project did not occur
at all and there was no benefit derived.
It should be noted that it is possible for the smaller projects to obtain
financing which is similar to IRBs from the State Finance Authority
through the Small Business Loan Program. The majority of the IRBs that
Iowa City has issued for commercial and housing projects would be eligible
for financing under this state program. If the City becomes too restric-
tive with its IRB issues, the Small Business Loan Program could provide
similar financing which would permit businesses/developers to avoid having
to deal with the City.
TheCity's policy in the past has been to issue IRBs for those projects
and are
therefore in tieen the bestwinterestsvofethesC City. The Cpomnittee recommends that
this continue to be the basis -of the City's IRB Policy and that IRB's be
thedCity hould treetaanid
etain theoright doe
pplynreasonableaspecific requirements
for individual projects as needed.
PUBLIC PURPOSES
Commercial Protects
The current policy (Exhibit A) lists five public purposes for commercial
projects and other projects permitted by the Urban Revitalization Act
(this included housing projects) on page two, Section 5. The new policy
for commercial projects (Exhibit B) lists nine public purposes on page
two, Section 5. This new policy does not cover housing projects since a
separate policy was developed for housing projects.
The first five public purposes (a -e) remain relatively the same as those
in the current policy with the addition of some wording changes for
clarity purposes. Two of the additional four public purposes include (f)
improving structural access for handicapped accessibility, and (g)
promoting energy conservation. Both of these are self-explanatory.
Also added was the public purpose which provides for-profit health
services (h) This public purpose limits for-profit health services IRB
projects to the Urban Revitalization area as designated by the City. The
State Code permits such projects anywhere within the city limits, but the
Committee felt that IRBs issued for such projects serve little public
purpose unless they are located in the Urban Revitalization area where
they will enhance and strengthen that area.
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The last public purpose (i) added was the extent to which the construction
workers on the project are drawn from the Johnson County labor pool. It
was not felt advisable to restrict the construction workers to only union
labor since that could require hiring out-of-town labor in some instances.
The priority should be to encourage employment of the local labor force.
Industrial Proii�
The currentpolity lists four public purposes for industrial projects on
page four, Section 5. The new policy for industrial projects (Exhibit C)
lists six public purposes on page two, Section 5.
Public Purpose
employment opportunities. Iteahas withcreating
cexpanded oin ptheenewresrvingpolicy existing
emphasize the desirable employment of specific groups. Public purposes b,
c and d are similar to those found in the current policy but have had some
wording changes for clarity purposes.
Public purposes a and f are similar to those listed for commercial
projects.
Housing Projects
The new policy for -housing projects lists eight public purposes. These
public purposes were developed expressly for housing projects and are
self-explanatory or are similar to public purposes used for commercial
and/or industrial projects which are explained above.
If the City's objective is to encourage additional low-income housing, the
use of IRB financing is not the most effective way to accomplish that
objectivublihousing
projectseor there financing tethe chniques. should consider
Committee has dtional one acprelimi-
nary review of Chapter 403A of the Iowa Code which permits the issuance of
bonds for public housing projects. In addition, the new Tax Reform Act
extends the authority to issue mortage revenue bonds for another three
years. These may be additional sources of funding for housing projects
and will be investigated further by the Committee.
The Committee did consider the suggestion of setting a requirement
regarding the number of low-income units. After a great deal of review,
the consensus was to not recommend such requirements based upon the
following reasons:
1. Requirement would need to be monitored for the term of the bonds which
could be up to 20 or 30 years. In addition, penalties or sanctions
would need to be identified. Such penalties would be difficult to
administer and may discourage
jects. applicants for IRBs for housing pro -
2. It would not be possible to monitor the units by requiring that those
units be placed under the City's Assisted Housing Program because the
City cannot guarantee that it will always have available openings in
that program.
1337
3. An increase in percentage over the 20 percent now mandated by the
Internal Revenue Service could jeopardize the financial feasibility of
projects and/or could cause the non -low-income units to be priced
higher than usual in order to subsidize the rents on the low-income
units.
4. The more restrictive the policy, the more chance that applicants may
be discouraged from using I118s for projects of this type. Criticism
has been raised regarding the fact that IRB -funded projects do not
provide sufficient low-income housing opportunities/units. It cannot
be overlooked that the IRBs which have been issued to date have
provided 33 low -intone units; that's 33 more units than would probably
have been available without the IRB financing. Obtaining some public
benefits from IRBs is much better than discouraging applicants for
IRBs and ending up with no public benefits at all.
REVISIONS CONSIDERED BUT NOT INCLUDED IN THE POLICIES
The following recommended or suggested revisions were reviewed by the
Staff Review Committee. These revisions were taken from comments received
at the public meeting held regarding the IRB policy and/or at public
hearings held on specific IRB projects. The Committee decided not to
recommend these .items in the revised IRB Policies.
1. In a housing project, the percentage of units 'which are required to be
occupied by low-income tenants should be applied to all size units:
this item means that instead of using 2OZ of all units, it should
instead be 2OZ of all one -bedroom units, plus 20% of ail two-bedroom
units, and 20% of ail three or more bedroom units. IRS regulations
require that the 20% be applied to the total units in the project.
This has resulted, in Iowa City, in only one -bedroom units being
designated as low-income units. Lyle Seydel, Housing Coordinator,
confirms that in his housing program, the greatest demand is for
one -bedroom units in the downtown area where the IRBs may be issued;
there is a smaller demand for the larger units. The Staff Review
Committee does not recommend applying the percentage to all size units
as the most critical need (for one -bedroom units) is being met under
the current policy.
2. Any contractor who builds with IRBs should be required to comply with
the federal HUD guidelines which prohibit discrimination in employment
practices: the Committee does not recommend adding this requirement as
the City's current Human Rights Ordinance already prohibits such
discrimination and is in fact more restrictive than the HUD guide-
lines. Staff 1s not aware of any past problems in this area on IRB
financed projects.
3. The contractor should be required to follow HUD regulations in regards
to guidelines for construction materials: the Committee does not
recommend adding this requirement as all construction projects in the
City must be in compliance with the City building code which prohibits
the use of shoddy construction materials.
13A7
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4. Require projects to use union labor: the Committee recommends that
the City encourage that the labor force be drawn from the Iowa
City/Johnson County labor market instead of limiting it to just union
labor. In a few instances, the use of only union labor could require
hiring some out-of-town laborers.
S. The contractor should be required to follow federal wage standards for
IRB Projects: this, in effect, would require the use of Davis -Bacon
wages which would increase project costs. City experience on projects
which had to comply with Davis -Bacon wage standards have shown in-
creases in labor costs of up to 205. Therefore, the Committee does
inot recommend adding this requirement.
6. All projects should be competitively bid: the Committee does not
recommend this requirement because, in the City Attorney's opinion,
such action could be easily challenged as it would attempt to impose
public bidding requirements on private businesses. Since the State
code does not authorize public bidding, the imposition of this
requirement could affect the marketability of the bonds.
In summary, the biggest concern of the Committee was the over -encumbering
of the process to the extent that:
1. Projects would become financially infeasible.
2. Potential applicants would be discouraged due to the complexity and
restrictions of the process.
3. A costly compliance monitoring program would need to be developed
which could easily outweigh the benefits derived from the program.
TOTAL AGGREGATE AMOUNT OF ISSUED IRB'S
Limitations exist in IRS regulations on the amount of bonds which may be
issued per project by a governmental unit. The new Tax Reform Act
contains limitations or caps by State on the amount of IRBs which may be
issued annually. Since this legislation is not yet finalized, it is
premature to make a final decision on any local limitations. However, the
policies do contain a revised guideline which is discussed below. In the
City's original policy, the total amount of outstanding IRBs was set at 55
of the total assessed valuation. The Council's intent was to establish
this amount as a guideline which could be reviewed and increased at any
time in the future.
The revised policies include a percentage for each type of project.
Commercial is set at 3%, Housing at 3% and Industrial at 5%. The Indus-
trial limit is higher due to the fact that industrial projects are usually
more costly than the other projects. Currently the amount of outstanding
and pending issues are as follows:
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fBond Issues: Pending Issues:
Commercial $ 11,285,000 $ --
Housing $ 7,450,000 $ 900,000
Industrial $ 35,126,670' $2,200,000
*This is net of the Mercy Hospital refunding bond issue since it was not a
new project.
3% of total assessed valuation equals $33,739,672 and 5% equals
$56,232,786.
TIMING OF APPLICATION REVIEW AND PROCESSING
Timing quite often becomes a problem in the processing of applications for
IRBs. It is not unusual for an applicant to expect immediate action by
the City Council when they submit their application. It has been City
policy to have the application reviewed by staff and by Design Review (if
applicable) prior to submission to the Council. This review can take two
to four weeks. in addition, there is often a problem with receiving
agenda items from the applicant's bond attorney in time to permit adequate
review by staff and the City's Bond Attorney prior to preparing the item
to go on the Council meeting agenda. The Committee requests that the City
Council and the City Manager support them in allowing sufficient time for
the proper processing and review of materials. This could include the
possible deferring of the placement of items on the Council Agenda if they
are not received on time. The Policies very clearly state the time
limitations which must be followed by the applicants.
The procedures in the policies have been revised to permit the public
hearing on any IRB issue to be adjourned to the next scheduled Council
meeting. At that next meeting, the resolution to proceed with the bond
issue will be considered. This will avoid having the public hearing and
the resolution to proceed scheduled for the same meeting.
Members of the Staff Review Committee will be at the July 2 informal
Council meeting to answer questions on the revised policy drafts.
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INDUSTRIAL REVENUEBOND POLICY AND PROCEDURES
Mr7ITW TNDUSTRTAL
S
I. POLICY
A. INTRODUCTION
Chapter 419 of the Iowa Code grants authority to incorporated cities to issue
Industrial Revenue Bonds (IRBs) for certain private enterprise projects (Section
419.1(2)). Ail IRBs issued pursuant to Chapter 419 are limited obligations of
the municipality, with the principal of and interest on such bonds payable
solely out of the revenues derived from the project (Section 419.3).
B. INTENT
The intent of this policy is to provide an organized and consistent approach to,
and mechanism for, the evaluation and processing of Industrial Revenue Bond
requests. This policy statement will provide an outline of how an IRB request
would be considered by the City Council. It should be emphasized that the
intent of this policy is to assure that each IRB issue is in the best interests
of the City, and will assist in the implementation of private projects which
will improve and enhance Iowa City. The City is in no way obligated to issue an
IRB upon an applicant's request, but will evaluate each application based on the
criteria set forth herein.
C. LEGAL COMPLIANCE
All procedures leading to the issuance of an IRB, as well as the applicant's
utilization of the proceeds from any IRB issue, shall be in compliance with
applicable federal, state, and local laws, and the policies and requirements
contained herein. The responsibility for compliance shall in all cases rest
i with the applicant. The only covenant or warranty which the municipality shall
be required to make in connection with the proposed IRB issuance, either to the
applicant or to any other interested party, is that said municipality is a
corporation or political subdivision of the State of Iowa, organized and
existing under the laws of said State.
0, APPLICANT'S RESPONSIBILITIES
Except as hereinafter provided, and except as required by law, it shall be the
a plicant's responsibility to provide all necessary documents, forms, and
related materials, and to advise the City and other parties of all required
actions.
E. PUBLIC PURPOSE
It is the City's intention to issue IRBs to serve the public purposes described
herein for the overall benefit of Iowa City. It is not the City's intent to
issue IRBs solely to decrease the cost of the project.
j
F. POLICIES APPLICABLE TO INDUSTRIAL PROJECTS
1. Consistent with state law, the City will consider issuance of IRBs for
industrial projects as follows:
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3.
4.
5
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2
(a) Certain non-profit hospitals, clinics, and other non-profit health
facilities (see Chapter 479.2);
(b) Manufacturing or agricultural facilities that process, and/or assemble
products which are especially appropriate for office/research park
uses;
(c) National, regional, or divisional offices of a company;
(d) Commercial enterprises in storing, warehousing, and/or distributing;
and
(e) Pollution control facilities for industry, commercial enterprises, or
utility companies.
A project utilizing an IRB must be located within the legal boundaries of
the City.
The City will use the information provided by the applicant in the IRB
Application Form to evaluate the proposed project in terms of fulfillment
of the goals and objectives contained in the Comprehensive Plan U date.
Such evaluation will consider the impact of the projecton a Prov s on o
municipal services.
In order to evaluate a project's risk, the City requires that the appli-
cant, prior to application, make a substantial good faith effort to obtain
conventional financing upon such reasonable terms and conditions as prevail
in the market place at that time. Such good faith effort should take the
form of at least two letters or other documents stating the applicant has
made a good faith effort to obtain conventional financing. If such
financing is not available, the letters or documents should state those
reasons for the unavailability of financing.
The City will consider and evaluate applications for IRBs on the basis of
the following public purposes to be served through the issuance of IRBs for
industrial projects. The application must provide documentation that the
following public purposes are being served with the issuance of an IRB:
a. The extent to which the proposed project will:
(1) preserve existing employment; or
(2) create new employment opportunities for low- and moderate -income
residents, those currently enrolled in a government-sponsored job
training program, recent community college and university
graduates, and/or others.
b. The extent to which the proposed project will increase the current
property/building valuation.
c. The extent to which the proposed project will enhance and strengthen
the City as a manufacturing location and complement existing busi-
ness.
/r337
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d. The extent to which the proposed project will upgrade and improve
structures, improve site accessibility and usefulness, and otherwise
provide for the public health, safety and welfare.
e. The extent to which workers who are employed in the construction on
the proposed project are drawn from the Johnson County labor pool.
f. The extent to which the proposed project will promote energy conserva-
tion.
6. The total aggregate amount of IRBs outstanding at one time shall not exceed,
for industrial projects, 5% of the total assessed valuation of Iowa City.
1. The City reserves the right to select applications on a competitive basis.
a
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H- PR�URES
Reouirements
I. It is in the public interest that the issuance of IRBs be made only after the
City has been fully informed concerning the application, its current status and
future plans, the protection of the City's interests require thorough investiga-
tion of any request for IRBs.
2. The applicant will be required to submit certain information and assume the cost
of the City's review and issuance of the IRBs.
3. Matters of confidentiality for public disclosure, relating to the applicant or
his/her business, shall be honored to the extent that such informs
is not required as a matter of law. tion withheld
If
he
licant
ins its
4. andtlegalpdocumentstaall such own
proceedings al counsel
documentsrmustubae e lroceedins
andapproved by the City's bond counsel.
5. The applicant must not incur any project costs other than those authorized by
the Internal Revenue Code prior to the preliminary approval (Memorandum of
Agreement) being authorized by the City Council.
6. stateThe City
of Cotheuncilrreserinssthe right to deny any application for financing at any
proceding with the issuance and sale of theibondse(thisolution resolutioni is cauthorizes
onsidered
following the public hearing on the bond issue).
7. All applications, supporting materials and documents shall remain the property
of the City.
8. The applicant shall adhere to the following procedures in submitting a request
I
and application to the City for the issuance of Industrial Revenue Bonds.
Application and Review Procedures
1. Any person or firm desiring to request that the City of Iowa City issue IRBs
shall first secure a copy of the City's Industrial Revenue Bond Policy and
Procedures.
2. A written request accompanied by the application form, the required supplemental
information and a non-refundable deposit shall be submitted to the office of the
Director
Finance basede. uponThana estimate thsl
of the City's costsf associated with an
ofan
Industrial Revenue Bond issue. The applicant shall agree to reimburse the City
for all expenses which exceed the deposit amount and which result from the
review and evaluation of the request including but not limited to administra-
tion, legal counsel, consulting costs, printing, publication costs and all other
incidental costs or fees.
3. Following the receipt of the written request, the application form, the supple-
mental information and the deposit, the City Manager wiII notify the City
Council of the request and staff will review the project.
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In those instances when circumstances dictate review which requires expertise
beyond that of the City, the proposal will be submitted to an independent
consultant hired by the City. Before this expense is incurred, the applicant
shall be notified and given an opportunity to withdraw its application.
4. The Staff shall prepare a recommendation on the advisability of the issuance of
IRBs to be presented to the City Council at its next regularly scheduled meeting
following completion of the staff review. When possible, this review will be
completed within 30 days from the receipt of the request. It is not possible to
expedite this process. The Council will not take formal action on the request
until the review has been completed.
5. The City Council will then take preliminary action to approve or deny the
applicant's request to issue bonds. If such preliminary approval is granted,
the Memorandum of Agreement will be executed. I
If
he
ains its own
and troceins
legalapplicant
documents, aall such proceedingal scounsel
documentspmustChaveibeenoreviewed j
and approved by the City's bond counsel and then received by the Director of
Finance seven days prior to the Council meeting in order to be included on the
agenda of that meeting. Any proceedings or documents received late will not be
added to the Council Agenda.
6. The applicant should then request that the City Council schedule a Public
Nearing on the proposal to issue the bonds. The Public Nearing provides the
opportunity for any member of the public to speak for or against the bond
issue.
7. The public hearing should be adjourned to the next scheduled Council meeting at
which time the City Council will then vote on a resolution to determine whether
e preparation of fis
or not to proceed with the issuance and sale of the bonds. If such a
received, the applicant may then proceed with the pproval al Is
ments.
B. The City will review all final documents and if the terms are mutually agree-
able, the City Council will authorize final approval of the terms, execution and
delivery of the bonds.
1337
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lV
INDUSTRIAL PROJECT REQUEST
APPLICATION FOR INDUSTRIAL REVENUE BOND FINANCING
IOWA CITY, IOWA
Note: Three complete copies of this application form and all attachments must be
submitted. All materials submitted with this application msut be legible and
suitable for copying.
I. APPLICANT INFORMATION ("Applicant` refers to the proprietor, general partner or
corporate officer signing this application):
Name
Street ress
City, 5taeon p oe
e ep one
II. BUSINESS INFORMATION:
A.
ame of Bus ness
Current Ad ress of Bus ness
city, State and "F Co e
e ep one
B.
Proposed Add, of Bus ness
y, aean p Code
Type o us ness ate s a s e
/33�
I.
N
lV
INDUSTRIAL PROJECT REQUEST
APPLICATION FOR INDUSTRIAL REVENUE BOND FINANCING
IOWA CITY, IOWA
Note: Three complete copies of this application form and all attachments must be
submitted. All materials submitted with this application msut be legible and
suitable for copying.
I. APPLICANT INFORMATION ("Applicant` refers to the proprietor, general partner or
corporate officer signing this application):
Name
Street ress
City, 5taeon p oe
e ep one
II. BUSINESS INFORMATION:
A.
ame of Bus ness
Current Ad ress of Bus ness
city, State and "F Co e
e ep one
B.
Proposed Add, of Bus ness
y, aean p Code
Type o us ness ate s a s e
/33�
III. PERSON WHO SHOULD BE CONTACTED FOR ADDITIONAL INFORMATION:
Name Telephone
Address
City, State and Zip Code
IV. Reason for IRB Application/How will IRB financing enhance your project?
V. Information about Management (List the name of all owners, officers, directors,
and/or partners. Provide the percent of ownership and the annual compensa-
tion.):
Name and Title Z of Ownership
Address
Name and Title Z of Ownership
Address
Name and Title of Ownership
Address
Name and Title of Ownership
Address
VI. Project Cost and Funding
Complete and attach Exhibit A.
VII. Attachments to be Provided (blank exhibit forms should be utilized):
1. Exhibit B, Supplemental Information.
2. Exhibit C, Brief History of Business.
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3, Exhibit D, Description of educational, technical and business background
for all people involved in ownership or management of the business.
4. Exhibit E, Personal History Statement - one must be submitted for each
stockholder (20% or greater ownership), partners, officer and owner.
5. Exhibit F, Personal Financial Statement - one must be submitted for each
stockholder (20% or greater ownership), partner, proprietor and guarantor.
6. Exhibit G, Financial Information - financial statements for the past three
years, statements which are no older than 90 days for the current year, and
earning projections for at least one year.
7. Exhibit H, Listing of co-signers and/or guarantors for the bonds.
B. Exhibit I, Listing of Equipment or fixtures to be purchased with bond
proceeds.
9. Exhibit J, Rental Agreements.
10. Exhibit K, Listing of outstanding contracts, notes and mortgages payable.
11. Exhibit L. Summary of Collateral.
12. Exhibit M, Business Liabilities.
VIII. INDUSTRIAL PROJECT INFORMATION
As necessary, reference and attach information in response to questions in
Section VIll.
I. General
a. Description of product or service and how it is produced:
b. Will Iowa City location be the main office/plant or a branch?
c. Location of headquarters, if not in Iowa City:
d. Name and location of other facilities operated by the applicant:
e. Number and reason for any office/plant relocation since 1955:
1332
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f. Synopsis of five year growth plan of firm (attach narrative if neces-
sary):
i
g. Provide a written narrative discussing, in specific terms, how the
proposed project serves the public purposes described in the Policy
Section of of the IRB Application:
I
1 .
2. Relationship to Iowa City's Economy
a. Number of firms which already provide product or service within Iowa
City:
b. Description of other businesses this project might attract to Iowa
' City:
c. Dollar amount by which the proposed project will increase the current
property and/or building value:
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d. Specify items of equipment which wili be purchased as a result of
receiving IRB financing:
3. Employment Factors
a. Number of current employees: full time part time.
Number which are seasonal emp oyees: _ fuiT Lime _ part time. j
b. Number of new employees: full time _ part time. !
and/or
Number of employees retained: _ full time _ part time.
c. New employment for:
i
1. Low and moderate income residents Yes No i
2. Those enrolled in a government-
sponsored job training program:
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3. Recent university or community
college graduates:
4. Others (specify)
d. Minimum educational requirement of employees
Less than twelve years education - number of employees: full time
_ part time
Twelve years education - number of employees: _ full time
_ part time
Sixteen years of education - number of employees: _ full time
part time
Sixteen + years of education - number of employees: _ full time
part time
e. Current payroll: i annual or =
monthly.
Projected payroll in Iowa city: $ annual or $
f. Will project construction employ:or ers from Johnson oun y thly.
P001 — Yes _ Nolabor
4. Land Use
a. Location of project - Attach plat, map or diagram
b. Size of building(s):
c. Amount of land required:
d. Compliance with zoning:
e. Compliance with storm water management ordinance:
f. Landscaping of proposed facility and building design:
1337
III
5. Environmental Impact
i
a. Air:
i
b. Noise:
c. Water:
d. Energy conservation features incorporated in project:
e. Facility location proximate to fragile area(s): t
6. Municipal Services/Infrastructure .:
a. Sewer
i
1. Effluent type and amount (GPM): 1
2. Toxic or hazardous waste if any: f
3. Pretreatment methods:
i
4. Final treatment: municipal
I
_ on-site r
S. Location (on plot plan) of existing and proposed sewer lines:
i
b. Water
1. Usage: _ gallons per day, i I
i k .
y: 2. Location of existing and proposed water lines:
ic. Fire protection (approved fire rating):
III .
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f
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12
d. Streets
1. Anticipated traffic generation:
employee -generated vehicles
0 trucks/day.
2. Major trafficways to be used by traffic generated (detail specific
routes):
3. Existing and proposed streets for project (detail if any upgrading
of existing streets or construction of additional streets are
needed):
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d. Streets
1. Anticipated traffic generation:
employee -generated vehicles
0 trucks/day.
2. Major trafficways to be used by traffic generated (detail specific
routes):
3. Existing and proposed streets for project (detail if any upgrading
of existing streets or construction of additional streets are
needed):
i
ESTIMATED PROJECT COSTS
AND SOURCES 0 FUNDING
EXHIBIT A
1. COST:
Land s
Building: ( ) New ( ) Purchase ( ) Renovate . . . . . . . .
Machinery & Equipment , , , , , , , , , , .
Leasehold Improvements , , , , , , , , , , , .
Engineering , , , , , , , . . , . .
Legal & Underwriting , , , , , , , , , , , ,
Other:
i
TOTAL COST _ , S
2. FUNDING:
Industrial Revenue Bonds
Other:
TOTAL FUNDING s
(Note: Total Cost & Total Funding must equal.)
3• THE APPLICANT MUST HAVE APPLIED FOR CONVENTIONAL FINANCING FOR THIS PROJECT. ATTACH
LETTERS OR OTHER DOCUMENTS VERIFYING THAT THE APPLICANT HAS ATTEMPTED TO OBTAIN
CONVENTIONAL FINANCING.
li
Signature: Title: Date:
/337
EXHIBIT B - SUPPLEMENTAL INFORMATION
I. BOND PURCHASER INFORMATION:
Name: Address:
(Attach copy of agreement which includes interest rate, maturities,
amorization and pre -loan requirements.)
2. BOND RESERVE FUNDS, IF ANY (DESCRIPTION AND AMOUNT):
3. PROJECTED CLOSING DATE FOR ISSUANCE OF BONDS:
4. LOCAL ATTORNEY:
Name• Address:
S. BOND ATTORNEY:
Name• Address:
6. BANK(S) WHERE YOUR BUSINESS HAS AN ACCOUNT:
Bank• Address:
Bank• Address:
Bank• Address:
Signature: Title:
Date:
EXHIBIT C
1. BRIEF HISTORY OF BUSINESS:
EXHIBIT D
1. PROVIDE A BRIEF DESCRIPTION OF THE EDUCATIONAL, TECHNICAL AND BUSINESS BACKGROUND FOR
ALL THE PEOPLE INVOLVED IN THE OWNERSHIP OR MANAGEMENT OF THE BUSINESS:
Name: Title:
Management and Educational Experience:
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Name: Title:
Management and Educational Experience:
Signature:
Title:
Date:
X337
l - -
EXHIBIT E - STATEMENT OF PERSONAL HISTORY
NOTE: THIS FORM MUST BE FILLED OUT AND SUBMITTED AS FOLLOWS:
Q1 if a lots PrOvittarlhlp. by the Proprietor; (b) It a partnership. by each partner;
(cl It
eacn�iiie . Water, 1aanneddltionall (d) Any other Par". Ihtle11h1 a hired
or each holder of I01 or pyre of the eating WaPar. A, hss a,thartt/ to sp91
Itecl; / for and tY�ll to, derreear 1h the
1. NAME AND ADDRESS OF APPLICANT (FIRM NAME, STREET,a/CITY, STATE AND ZIP CODE):
2. PERSONAL STATEMENT OF (STATE NAME IN FULL). LIST ALL FORMER NAMES USED, AND DATES EACH
NAME WAS USED.
3. DATE OF BIRTH / / tLG"1
ant Day —Year 4 PLACE OF BIRTH:
5. U.S. CITIZEN: ()Yes tY/State/Fore gn Country
( ) No 6. SOCIAL SECURITY NUMBER:
7. PERCENTAGE OF OWNERSHIP OR STOCK OWNED:
8. PRESENT RESIDENCE ADDRESS:
From To Address:
Home Phone Number ( • ) Business Phone Number f )
9. IMMEDIATE PAST RESIDENCE ADDRESS:
From To Address:
BE SURE AND ANSWER THE NEXT 6 QUESTIONS CORRECTLY BECAUSE THEY ARE IMPORTANT. THE FACT
THAT YOU HAVE AN ARREST OR CONVICTION RECORD WILL NOT NECESSARILY DISQUALIFY YOU. BUT
AN INCORRECT ANSWER WILL PROBABLY CAUSE YOUR APPLICATION TO BE TURNED DOWN.
10. ARE YOU PRESENTLY UNDER INDICTMENT, ON PAROLE OR PROBATION?
() Yes ( ) No (If yes, furnish details.. List names under which held.)
11. HAVE YOU EVER BEEN CHARGED WITH OR ARRESTED FOR ANY CRIMINAL OFFENSE OTHER THAN A MINOR
VEHICLE VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which charged.)
12. HAVE YOU EVER BEEN CONVICTED OF ANY CRIMINAL OFFENSE OTHER THAN A MINOR MOTOR VEHICLE
VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which convicted.)
13. HAVE YOU EVER BEEN INVOLVED IN BANKRUPTCY OR INSOLVENCY PROCEEDINGS?
( ) Yes ( ) No (If yes, furnish details.)
14. HAVE YOU OR YOUR BUSINESS EVER DEFAULTED ON ANY BOND OR MORTGAGE COMMITMENT?
( ) Yes ( ) No (If yes, furnish details.)
1S. ARE YOU OR YOUR BUSINESS INVOLVED IN ANY PENDING LAWSUITS?
( ) Yes ( ) No (If yes, furnish details in a separate exhibit.)
Signature: Title:
Date:
/337
................ .......
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PAGE I
EXHIBIT F - PERSONAL FINANCIAL STATEMENT As N
Nw W ArM.. MaluNcy SI► CeN .... (�J pnr e.I s10r1
se6wilW f Suurr/
r
Cash r Nw E N Seek s............
S
S.rnsa Aa.r In E"4
Accawr payable......
.................. 111
............
U. S. Ge.rwat EM............
Name htNle r wY...............
s
Acawwu L Nre. Er.lr601...........
(Desnl60 MI" - fenlr 71
Life Inswrc.•C." Sc-1nd« V.1"
Needs hpeb to Gclre...............
OUM Sues W MW • .
(Oesvibe al" - Seal" 7)
- .
(Des"ibe - SeN" ]) • • • • • • • •
rssw.•sNla -
Inarllwenc Accwwt (Awe) .............
Rccl E.rr
"halt ►.1'w"w f...
............. ..
(Oesn1M ••••
S1alr e)
lurl"Accnts (pal..... I ......Ow«s•.c1-
Aurn.bila -hurl Vein
Mrrlt htww"u f
Owes, pawl • • • • • • • • • • •
LOrs"Life Mwa-we .....
••••
f08aat60-rarn� sent"...
lVtleep r Real Euw .............
]1
Om« Assets ..............
(DOanlhl- )
rwwrraf.. fens" 1
.. .....
(D1anIM-rwcr08-.M�=Seal" t)
.
UnM11 Tams.......... A............
(Desa160-tcuuc-+Y. - Sour 1)
Orr LI60111Uq....................
(008-160 • rr«s0 118. - feat" I)
Teal LlsclllU.....................
Nr "0"011 .........................
_ TOrL........ S
TOWE
Swum 1 Sn-a / 108tr0
IDOal60 odm fliklml line! In chic fealr
.' CONTINGENT UAEILITIEs
91.ry•.........................to
Not Inreatwwc Inc"........
A. Enlat« «Ce+Mk«
.......
Erl E1rr laaw
• • • • • • • • • •...f
Lopf claim W7Wlpo"r............
............. ...
Omer Iowan (011"Iee)
►nisi" f« ►e oral Mawr Tu ........
........ • • • • •
Oc11r Sneclel pyt
Oslvlatl" a Items listed In seal" I
..............
....
LII. Instroace Nn. (Gore fen enawnt M policies -nems M cmrlptat.sc 60nwpclerin)
-------------
s
i
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A1air12. Maine ►OfEYN n swim
i
Ammat N L." T"a of lrWrl
Name .ns Aunu of NeIMr M Naw Orl Ind E.I. Mswrt E.I. b mons .f e n No. EM«a c GuaMcrc,
a « eeuM
S E
/,337
i
-EXHIBIT F - PERSONAL FINANCIAL STATEMENT
PAGE 2
sectlr S. Other Simko ond Stands: al•d listed and wlll[tM Stands rho IS a fuse ddmHld dhodt II nacoddsiti
"What 761WSYt[ ' 00u
Nd. N SMI" Nwd N Sdewltbd Gen w.wllm Adylsit
foamlM oa. ■oats Sesdees OWlan1. (Lin Mcll Mrcdl sdlordtdlt. Us* hoNlnan"N dlintd I( Wcddddry, Each dhoti omit 68 168681(144 dd
lowisma to two smts dad diptd4• (AIN 0481Nd wNlhot /ho61tT to cdeddtsl H ll[r lodandede[d. $NUM [( QN. 61 gan1).
Title is in ndedN N
?"a N row"
Add,esz of Need, p (Gilt and SNNI
Original Cast r (w[) (es) 1
02" 11-wellosed
Mandanit 1tirMt Voltw S
TM Aller si t VdWd S
NNW and Address N N~ N NrtgdN (City and Same)
Due at Nrq[p
Original Assisi[ S
Saud S
dYde.lty
Tdrand M PdtdeMtt '
utw N /trtgdgd, 1.06. ndrMt sl NtllloaoaslN. If N1144dddet Nd611ko 48111t[oaesclN
sswM S. OM PWBWAI Rg61q. (00[61168 dN I/ a" r s rtford. dan61 Mlas dN oth"Al of mwwt* N/NIW [roar[ 4(deM441•
island of Midan" Md 1( 48114400", oadwl68 ldlt4400mt.)
fesaM oa. OM AHN& mem"601 MEN
Sm"" T. Urfaid Toads. (Ddda1M in Null, to r tqd, w whom ppl►Id, .ddde alas, dooN", dal/ What. 1( MT. IMrq • Nd )its. it
Mt. moachos)
Session L aha USUI la(614461168 r NNIu
(1) W (Moa) esnl/( N paid and did INNansllan canlNldeod In Mid m7ld48W InMoa In de M and Woodside ddNoadrN N (ant) W (M) INtanlcldl
condition as N one data Mad bwtvl .
i
SIG14ATURE TITLE DATE
i / 337
i
Ll
i EXHIBIT F - PERSONAL FINANCIAL STATEMENT PAGE 3
I •
one:�1M t' 1111 fir' QYnw• (LIES MLA MIt.11NYRaI. WM
Y IYNIYYI.I IAMB I('etHl'ry. loss, Am 'I M iwNllM t11 !
EYMIew'q t1111t tlweecM e" nMMI. (Also Bolls, TWO 1' a nMle N "Stow 'serer
■ IE cove'" 1Y title I1ntYtnte. stNn of Wit. IS Iw11.
rIM r wwwl
�ovss' of IS ( 1v M ul
Crl[IMl Con U (well (MI t
am SLRI.Iest
'RUM Mn1"Val" t I
TM Ansonoem Vol" {
Neth' M A IS never tis MwtU a (cam M Sutra
am of Mw't1[e
Cn{IMl Assuan i
Mow { !
IYwry
Trove r I+wwwa
wre r MrtMM...e..'cress r N1lwwni 1/ w1YnYMt lMr1M enlMYwnlw
1
t1wIM t. IMI 4�1 OVwL fun MQ MR'1 INM""lI. Ws ln,el UI ENQI ./ necessary. gees IMw west M NMUIIM Be t
'"Curs w Wt 11rMwn MI "CM). (AIN C"INI nelwlw Irelene 1'tIYrM N this is@~*. eMsess r lisle. IS owl.
TIM u w news M TIC of wow"
i
YY M wNr'f l 4 Mt n) j
CAtewl CMI M,(ww (MI t 1
am posimed
/nmet 1\ren Vol" i
rN AY"NwY1t Vow t
j Nsew M AIrM1 r neww r IlwlPp JEW Mt lute)
Ow r Nwap{e
CA[rwl Awuws 1
YWM {
plawirI
Tells of Is
U'w to Mw'Pts• i.e.. z;;;t w M11MYw'i It CellA"ec etetllee tellMbntleE
Sw IM 1, Iew foliose 11..W1. (left Msa MRs, mMM j,. use 'Se,, Mwtl ENwt if necsuery. green EAM even M ilewlnM t1
'"MIegM 11 Oil "M~ Me'IPrwl. (Alse.Flus n"Uer wsetMl to ewtM 4 t11N In'wenw.'NMU of tl'fs, r aw11.
TIM n w nww, r TIC r welww
A4wQ94 40 wes/rt QF;;
` 01181M1 Cal U (IM) (M) I j
CIU Aww ww
/RwM MrYw Vel" t 1
TM AMMwYwa VeM t
nww w A' a of MGSI of Mwepp (Ca w1 Mn
Ow of MwgeM I
O'It11111 Amat 1
Islwlas {
Mevlry
runs IS MY...'
Yew r M14e66. I.a- %wton I w11.AnMi 11 M11AYM' deer'" se11MYMYtw
Signature: Title: Date:
/ 337
EXHIBIT G - FINANCIAL INFORMATION PAGE 1
This is the most important part of your IRB application. All financial data mutt W
Prepared in acrntdwce with generally dttepted accounting principles. Incomplete or,
inaccurate financial statements may result in the entire application being returned
withoutoneo!the aetiontwo. Plesesparagraphs readbelthe following instructions carefully. You must coeply with
ow,
1.
IF YOU ARE APPLYING PS AN EXISTING DUSI1'ESS:
A. Attach hereto financial stateeants consisting of a balance sheet AND a
profit and loss statement for the past three fiscal years or since the
start of the business, whichever is less.
8. Attach hereto a balance sheet AND a profit and loss staternt no older
than 90 days from data of filing application.
C. Reconciliation of Net Wortht
Beginning Surplus or Net Worth
Profit or Loss
Dividends . . . . . . • • • • .
Withdrawals . .
• •
Paid In .. .
Revaluation of Assets . . . .
Other Additions (Explain) , . . .
Other Charges (Explain) . . . . . .
Ending
19_ 19_ Current Year to, Data I I
0. Note.
Aging Accounts Receivable A_c_counts Payable
Accounts receivable and
Under 30 days
accounts Payable wt
30-59 days
see00ei1e with current
60-89 days
balance sheet to be
90-119 days
Provided with Application.120 days i over
Uncollectible
Totals aoseas a_ee�
NOTE: (a) All of the above financial statements NcST be signed and dated by the owner,
a partner or an officer of the business.
(b) If finastial statements are not available for prior years, or are inadequately
Prepared, Copies of the business Federal Income Tax returns may be substituted.
(c) All personally owned assets and liabilities such as home, household goods and
so forth should _t be included on the business financial statements.
(d) If past earnings do not show the ability to repay the low proposed and existing
obligatimis, attach a projection of earnings.
2. ZF YOU ARE APPLYING FOR IRB'$ TO START A NCW BUBINfBS OR BUY AN EXISTIBG BUBINEB8t
A. A detailed projection of earnings must be attached hereto.
B. State below the reason the present owner (seller) is selling his business,
I
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C. Attach copies of the Seller's profit and loss statement for the past three years.
I D. Attach hereto a copy of the Purchase Agreement.
SIGNATURE TITLE DATE
/,337
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EXHIBIT G - FINANCIAL INFORMATION
FRIUECTIOM
FOR YEAR
Ruslnue Maew and Address
AMOUNT
SALLY Q
Legleelag Inventory $
Narchandise purchased
Total
Leu Ending Inventory
Cust at Sales
GLOSS PBOFIT
EXPENSES:
Of fliers, partnere, or
Owen salaries
Labor
SUPPllss
A,.vertiolms
Travel
Depratlation
Freight and postage
tnouraeee {genas
Interest Expeesa
Utilities
Accounting and Legal
Meal i personal Taney
Telephone
Repair@ A Wateaaace
MLcallanaaue Expense
Auto or Truck Expanse
Ent or Leese Repass
TOTAL REFUSE
Operating profit
Other Income
Other Expense
MET PROFIT (Before Istome Taxes)
Estimated Income Taxes
NET PROFIT
SIGNATURE
PAGE 2
TITLE DAT
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EXHIBIT G - FINANCIAL INFORMATION
FRIUECTIOM
FOR YEAR
Ruslnue Maew and Address
AMOUNT
SALLY Q
Legleelag Inventory $
Narchandise purchased
Total
Leu Ending Inventory
Cust at Sales
GLOSS PBOFIT
EXPENSES:
Of fliers, partnere, or
Owen salaries
Labor
SUPPllss
A,.vertiolms
Travel
Depratlation
Freight and postage
tnouraeee {genas
Interest Expeesa
Utilities
Accounting and Legal
Meal i personal Taney
Telephone
Repair@ A Wateaaace
MLcallanaaue Expense
Auto or Truck Expanse
Ent or Leese Repass
TOTAL REFUSE
Operating profit
Other Income
Other Expense
MET PROFIT (Before Istome Taxes)
Estimated Income Taxes
NET PROFIT
SIGNATURE
PAGE 2
TITLE DAT
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EXHIBIT H
1. LIST BELOW THE NAMES OF ANY CO-SIGNERS ANO/OR GUARANTORS FOR THE BONDS (YOURSELF,
SPOUSE, PARTNERS, OFFICERS, DIRECTORS, OTHERS (A PERSONAL FINANCIAL STATEMENT MUST
BE ATTACHED HERETO FOR EACH INDIVIDUAL LISTED):
Name: Address:
Name: Address:
Name: Address: j.
I
EXHIBIT I
1. LIST BELOW ALL EQUIPMENT AND/OR FIXUTRES TO BE PURCHASED WITH THE BOND PROCEEDS:
i
COST NEW USED
� ? I
TOTAL !
EXHIBIT J
1. IF BUSINESS REAL ESTATE IS OR WILL BE RENTED, ATTACH A COPY OF THE LEASE. IF NOT
AVAILABLE, STATE BELOW THE TERMS OF THE EXISTING OR PROPOSED LEASE.
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Signature: Title: Date:
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EXHIBIT K
1. PLEASE LIST ALL CONTRACTS, NOTES AND MORTGAGES PAYABLE AND RECONCILE WITH FIGURES ON
BALANCE SHEET (INDICATE BY AN ASTERISK ITEMS TO BE PAID FROM LOAN PROCEEDS). DO NOT
INCLUDE PERSONAL DEBT SUCH AS HOME MORTGAGES, DOCTOR BILLS, PERSONAL AUTO LOANS AND
SO FORTH. INCLUDE ONLY DEBT OWNED BY THE BUSINESS. DO NOT INCLUDE TRADE ACCOUNTS
PAYABLE BELOW, ONLY NOTES AND CONTRACTS WHICH CONSTITUTE A FIXED OBLIGATION OF THE
BUSINESS SHULD BE ITEMIZED.
PRESENT RATE OF NTHLY
TO WHOM PAYABLE ORIGIAMOUNT ORIDATEGINALBALANCE INTEREST MATURITY PAYMENT COLLATERAL
EXHIBIT L
1. SUMMARY OF COLLATERAL
PRESENT MARKET COST LESS
VALUE DEPRECIATION
Land Z Building
Inventory
Accounts Receivable
Machinery 6 Equipment
Furniture 6 Fixtures
Other:
TOTAL COLLATERAL
EXHIBIT M
1. DOES YOUR BUSINESS HAVE ANY CONTINGENT LIABILITIES? ( ) Yes ( ) No
If yes, please explain below. Accounts or notes receivable discounted or sold with
endorsement or guarantee should be explained.
Signature: Title: Date:
A.
Ll
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INDUSTRIAL REVENUE BOND POLICY AND PROCEDURES r A^/
�Y J
COMMERCIAL PROJECTS
I. POLICY
Chapter 419 of the Iowa Code grants authority to incorporated cities to issue
Industrial Revenue Bonds (IRBs) for certain private enterprise projects (Section
419.1(2)). The Iowa Urban Revitalization Act of 1919 has amended Chapter 419 to
allow for the issuance of IRBs for commercial projects located within locally
designated urban renewal or urban revitalization areas. All IRBs issued pursuant
to Chapter 419 are limited obligations of the municipality, with the principal
of and interest on such bonds payable solely out of the revenues derived from
the project (Section 419.3).
B. INTENT
The intent of this policy is to provide an organized and consistent approach to, j
and mechanism for, the evaluation and processing of Industrial Revenue Bond
requests. This policy statement will provide to an outline of how an IRB
request would be considered by the City Council. It should be emphasized that
the intent of this policy is to assure that each IRB issue is in the best
interests of the City, and will assist in the implementation of private projects
which will improve and enhance Iowa City'. The City is in no way obligated to
issue an IRB upon an applicant's request, but will evaluate each application
based on the criteria set forth herein.
C. LEGAL COMPLIANCE
All procedures leading to the issuance of an IRB, as well as the applicant's
utilization of the proceeds from any IRB issue, shall be in compliance with
applicable federal, state, and local laws, and the policies and requirements
contained herein. The responsibility for compliance shall in all cases rest
with the applicant. The only covenant or warranty which the municipality shall
be required to make in connection with the proposed IRB issuance, either to the
applicant or to any other interested party, is that said municipality is a
corporation or political subdivision of the State of Iowa, organized and
existing under the laws of said State.
D. APPLICANT'S RESPONSIBILITIES
Except as hereinafter provided, and except as required by law, it shall be the
applicant's responsibility to provide all necessary documents, forms, and
related materials, and to advise the City and other parties of all required
actions.
E. PUBLIC PURPOSE
It is the City's intention to issue IRBs to serve the public purposes described
herein for the overall benefit of Iowa City. It is not the City's intent to
issue IRBs solely to decrease the cost of the project.
/A
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F. POLICIES APPLICABLE TO COMMERCIAL PROJECTS AND OTHER PRURBAN REVITALIZATIO OJECTS PERMITTED BY THE
1. Consistent with state law, the City will consider issuance of IRBs for a
project permitted by Chapter 404 of the Code of Iowa onlyif said project
is located within the City's Urban Renewa ro3ec Areor within such
urban revitalization areas as the City may hereinafter designate, pursuant
to Chapter 419. (See Map A.)
2. All projects permitted by Chapter 404 and located within the City's Urban
Renewal Project Area or within such urban revitalization areas as the City
may hereafter designate, will be subject to design review by the Design
Review Committee, pursuant to Resolution No. 74-48 , and shall be subject
to design review and approval by the City Council. With respect to projects
located on or adjacent to City Plaza, the design review procedures de-
scribed in Chapter 9 of the Iowa City Code of Ordinances shall apply.
3. IRBs issued by the City shall be used to'attract new commitments to
downtown redevelopment.
4. In order to evaluate a project's risk, the City requires that an applicant,
prior to application, make a substantial good faith effort to obtain
conventional financing upon such reasonable terms and conditions as prevail
in the marketplace at the time. Such good faith effort should take the
form of at least two letters or other documents stating the applicant has
made a good faith effort to obtain conventional financing. If such
financing is not available, the letters or documents should state those
reasons for financing unavailability.
5. The City will consider and evaluate applications for IRBs on the basis of
the following public purposes to be served through the issuance of IRBs for
the commercial projects. The application must provide written documenta-
tion that the following public purposes are being served with the issuance
of an IRB:
a. The extent to which the proposed project will create new or preserve
existing employment opportunities.
b. The extent to which the proposed project will increase the current
property/building valuation.
c. The extent to which the proposed project will enhance and strengthen
the designated area in Map A as the commercial, business, service,
educational, and multi -family residential center for Iowa City and
the surrounding area.
d. The extent to which the proposed project will upgrade deteriorated or
deteriorating structures, improve site accessibility and usefulness,
and otherwise provide for the public health, safety and welfare as
detailed in the Urban Revitalization Act (1979).
e. The extent to which theosed
ro
p p project will allow for preservation
and restoration of buildings of historical or architectural signifi-
cance.
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f. The extent to which the proposed project will improve structural
accessibility.
g. The extent to which the proposed project will promote energy conserva-
tion.
h. The extent to which the proposed project will provide for-profit
health services.
i. The extent to which the workers who are employed in the construction
of the project are drawn from the Johnson County labor pool.
6. The total aggregate amount of IRBs outstanding at any one time shall not
exceed, for commercial projects in the urban renewal/urban revitalization
areas, 3% of the total assessed valuation of Iowa City.
7. The City reserves the right to select applications on a competitive basis.
I
4
II. PROCEDURES
Requirements
1. It is in the public interest that the issuance of IRBs be made only after the
City has been fully informed concerning the application, its current status and
future plans; the protection of the City's interests require thorough investiga-
tion of any request for IRBs.
2. The applicant will be required to submit certain information and assume the cost
of the City's review and issuance of the IRBs.
3. Matters of confidentiality for public disclosure, relating to the applicant or
his/her business, shall be honored to the extent that such information withheld
is not required as a matter of law.
4. If the applicant retains its own legal counsel to prepare Council proceedings
and legal documents, all such proceedings and documents must be reviewed and
approved by the City's bond counsel.
5. The applicant must not incur any project costs other than those authorized by
the Internal Revenue Code prior to the preliminary approval (Memorandum of
Agreement) being authorized by the City Council.
6. The City Council reserves the right to deny any application for financing at any
state of the proceedings prior to adopting the resolution which authorizes
proceeding with the issuance and sale of the bonds (this resolution is consid-
ered following the public hearing on the bond issue).
7. All application's, supporting materials and documents shall remain the property
of the City.
8. The applicant shall adhere to the following procedures in submitting a request
and application to the City for the issuance of Industrial Revenue Bonds.
Application and Review Procedures
1. Any person or firm desiring to request that the City of Iowa City issue IRBs
shall first secure a copy of the City's Industrial Revenue Bond Policy and
Procedures.
2. A written request accompanied by the application form, the required supplemental
information and a non-refundable deposit shall be submitted to the office of the
Director of Finance. The amount of the deposit will be defined by the Director
of Finance based upon an estimate of the City's costs associated with an
Industrial Revenue Bond issue. The applicant shall agree to reimburse the City
for all expenses which exceed the deposit amount and which result from the
review and evaluation of the request including but not limited to administra-
tion, legal counsel, consulting costs, printing, publication costs and all other
incidental costs or fees.
3. Following the receipt of the written request, the application form, the supple-
mental information and the deposit, the City Manager will notify the City
Council of the request and staff will review the project.
/3 -77
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{
ise
In those instances when circumstances dictate review which requires expertendent
beyond that of the Cit the
consultant hired by the City. Before athisilexpense iisiincured,d to a
napplicant
the
shall be notified and given an opportunity to withdraw its application.
4.
All commercial projects are subject to design review by the Design Review
Committee and approval by the City Council.
Specific information is required
before this review can be undertaken, a copy of requirements for design review
is available for the City. A Design Review Committee recommendation to the City
Council on the project is required before formal
preliminary action can be taken
on the IRB request.
5.
The Staff shall prepare a recommendation on the advisability of the issuance of
IRBs to be
presented to the City Council at its next regularly scheduled meeting
following completion of the
staff review. When possible, this review will be
completed within 30 days from the receipt of the request. It is
not possible to
expedite this process. The Council will not take formal action on the request
until the review has been
completed.
6.
The City Council will then take preliminary action to approve or deny the
applicants request to issue bonds.
If such preliminary approval is granted,
the Memorandum of Agreement will be executed.
If the applicant retains its own legal counsel to prepare Council proceedings
and legal documents, all such
proceedings and documents must have been reviewed
and approved by the City's bond counsel and then received by the Director
of
Finance seven days prior to the Council meeting in order to be included on the
agenda of that meeting. Any
proceedings or documents received late will not be
added to the Council Agenda.
7.
The applicant should then request that the City Council schedule a Public
Hearing on the
proposal to issue the bonds. The Public Hearing provides the
opportunity .for any member of the to
public speak for or against the bond
issue.
8.
The public hearing should be adjourned to the next scheduled Council meeting at
which time the City Council
will vote on a resolution to determine whether or
not to proceed with the issuance and sale of the bonds. If
such approval is
received, the applicant may then proceed with the preparation of final docu-
ments.
9.
The City will review all final documents and if the terms are mutually agree-
able, the City Council will authorize final
approval of the terms, execution and
delivery of the bonds.
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MAP ELIGIBLE AREA: INDUSTRIAL REVENUE BONDS
f
Enabling Resolutions Containing Legal Descriptions
Resolution No. 80-474
Resolution No. 81-266
Resolution No. 81-290
Resolution No. 81-271
Resolution No. 83-418
Resolution No. 84-122
LI
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COMMERCIAL PROJECT REQUEST
APPLICATION FOR INDUSTRIAL REVENUE BOND FINANCING
IOWA CITY, IOWA
Note: Three complete copies of this application form and all attachments must be
submitted. All materials submitted with this application must be legible and
suitable for copying.
I. APPLICANT INFORMATION ("Applicant" refers to the proprietor, general partner or
corporate officer signing this application):
Name
treet ress
ty, tate and Zip Code
e ep one
II. BUSINESS INFORMATION:
A.
ame o us ness
urrer,� ress o us ness
city. a e an p e
e ephone
B.
Proposed Ad ress o us ness
Cty$ Staean ZpC e
ype of Business ate s a s e
i
1 „
- 1
,
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COMMERCIAL PROJECT REQUEST
APPLICATION FOR INDUSTRIAL REVENUE BOND FINANCING
IOWA CITY, IOWA
Note: Three complete copies of this application form and all attachments must be
submitted. All materials submitted with this application must be legible and
suitable for copying.
I. APPLICANT INFORMATION ("Applicant" refers to the proprietor, general partner or
corporate officer signing this application):
Name
treet ress
ty, tate and Zip Code
e ep one
II. BUSINESS INFORMATION:
A.
ame o us ness
urrer,� ress o us ness
city. a e an p e
e ephone
B.
Proposed Ad ress o us ness
Cty$ Staean ZpC e
ype of Business ate s a s e
i
- 1
,
i
1
.
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INDUSTRIAL REVENUE BOND POLICY AND PROCEDURES
FOR THE Y OF OW C TY OWA
HOUSING PROJECTS
I. POLICY
A. INTRODUCTION
Chapter 419 of the Iowa Code grants authority to incorporated cities to
issue Industrial Revenue Bonds (IRBs) for certain private enterprise
hasjamendedeChapter 1499 to))al
1 whforotheUissua ce tof lI1RBs ifor residential
projects located within locally designated urban renewal or urban
revitalization areas. All IRBs issued pursuant to Chapter 419 are
limitinterest on such bondsobligations fthe payable municipality,
of the trevenuescderived from
the project (Section 419.3).
B. INTENT
The intent of this policy is to provide an organized and consistent
approach to, and mechanism for, the evaluation and processing of housing
project requests. This Policy statement will provide an outline of how a
housing project request will be considered by the City Council. It
should
cy is to assue that
each project issue is inathe hbest tinteestsent of hof is the the City willr
rassist
in the implementation of private projects to improve and enhance Iowa
City and will aid in achieving the goals established in the Housing
Assistance
anapplicant's nrequest City
is
evaluate beachtapplication based ed to Issue an Bonuthe
criteria set forth herein.
C. LEGAL COMPLIANCE
All procedures leading to the issuance of IRBs for housing projects, as
well as the applicant's utilization of the proceeds from any bond issue,
shall be in compliance with applicable federal, state, and local laws,
and the policies and requirements contained herein. The responsibility
for compliance shall in all cases rest with thapplicant. The only
e
covenant or warranty which the municipality shall be required to make in
connecti
licant or to
any otheron
interestedpparty, iso
thatssaidcmunicipality iseaaeither to corporation or
political subdivision of the State of Iowa, organized and existing under
the laws of said State.
0. APPLICANT'S RESPONSIBILITIES
Except as hereinafter provided, and except as required by law, it shall
be the applicant's responsibility to provide all necessary documents,
forms, and related materials, and to advise the City and other parties of
all required actions.
10,37
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E. PUBLIC PURPOSE
i
It is the City's intention to issue IRBs for housing
the public purposes described herein for the overall lbenefit toects serve
sIowa
City. It is not the City's intent to issue an IRB solely to decrease the
cost of the project.
F. POLICIES APPLICABLE TO HOUSING PROJECTS
I
I. Consistent with state law, the City will consider issuance of IRBs
for a project permitted by Chapter 404 of the Code of Iowa only if
i
ban Te—n—ew—a7-FFOect Area
orwithin esuch surban trevitalization 0area sasrthe City may hereinafter
designate, pursuant to Chapter 419. (See Map A.)
{ 2. All projects permitted by Chapter 404 and located within the City's
Urban Renewal Project Area or within such urban revitalization areas
as the City may hereinafter designate, will be subject to design
74-48, and andthe shallsti n Review subject to designittee' rreviewnandoappResolution
oval iby the
City Council. With respect to projects located on or adjacent to
City Plaza, the design review procedures described in Chapter 9 of
the Iowa City Code of Ordinances shall apply.
3. IRBs for housing projects issued by the City shall be used to
attract new commitments to providing housing for low income fami-
lies, elderly, handicapped and disabled persons.
4. In order to evaluate a project's risk, the City requires that an ap-
plicant, prior to application, make a substantial good faith effort
to obtain conventional financing upon such reasonable terms and con-
ditions as prevail in the marketplace at the time. Such good faith
effort at
documents hst tingkthehappli applicant made sta good two lfaith effortetters or toobtain conventional financing. If such financing is not available,
the letters or documents should state those reasons for financing
unavailability.
5. The City will receive and evaluate requests for a housing project on
the basis of the following public purposes to be served through the
issuance of an IRB for housing projects. Each request will be
measured against the extent to which the proposed project will:
a. Increase the number of dwelling units available to low income
families, elderly, handicapped or disabled persons (as defined
by the Department of Housing 8 Urban Development).
j b. Upgrade and improve existing housing stock and provide addi-
tional choices.
I
c. Increase property value and tax revenue from the property
involved.
d. Enhance achievement of goals established in the Housing Assis-
!
tance Pian which is on file at the office of the City Clerk.
i
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e. Improve structure accessibility.
f. Incorporate or improve energy conservation.
g. The extent to which workers who are employed in the construction
on the proposed project are drawn from the Johnson County labor
pool.
6. The total aggregate amount of Housing Bonds outstanding at any one
time shall not exceed 3% of the total assessed valuation of Iowa
City.
7. The City reserves the right to select applications on a competitive
basis.
/3,37
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3
e. Improve structure accessibility.
f. Incorporate or improve energy conservation.
g. The extent to which workers who are employed in the construction
on the proposed project are drawn from the Johnson County labor
pool.
6. The total aggregate amount of Housing Bonds outstanding at any one
time shall not exceed 3% of the total assessed valuation of Iowa
City.
7. The City reserves the right to select applications on a competitive
basis.
/3,37
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H. PROCEDURES
Requirements
I. It is in the public interest that the issuance of an IRB be made only
after the City has been fully informed concerning the application, its
current status and future plans; the protection of the City's interests
requires thorough investigation of any request.
2. The applicant will be required to submit certain information and assume
the cost of the City's review and issuance of the IRB.
3. Matters of confidentiality for public disclosure, relating to the
applicant or his/her business, shall be honored to the extent that such
information withheld is not required as a matter of law.
4. If the applicant retains its own legal counsel to prepare Council pro-
ceedings and legal documents, all such proceedings and documents must be
reviewed and approved by the City's bond counsel.
5. The applicant must not incur any project costs other than those author-
ized by the Internal Revenue Code prior to the preliminary approval
(Memorandum of Agreement) being authorized by the City Council.
6. The City Council reserves the right to deny any application for financing
at any stage of the proceedings prior to adopting the resolution which
authorizes proceeding with the issuance and sale of the bonds (this
resolution is considered following the public hearing).
7. All applications, supporting materials and documents shall remain the
property of the City.
B. The applicant shall adhere to the following procedures in submitting a
request and application to the City for the issuance of IRBs.
Application and Review Procedures
1. Any person or firm desiring to request that the City of Iowa City issue
an IRB for a housing project shall first secure a copy of the City's
Housing Industrial Revenue Bond Policy and Procedures.
2. A written request accompanied by the application form, the required sup-
plemental information and a non-refundable deposit shall be submitted to
the office of the Finance Director. The amount of the deposit will be
defined by the Director of Finance based upon an estimate of the City's
costs associated with an IRS issue. The applicant shall agree to
reimburse the City for all expenses which exceed the deposit amount and
which result from the review and evaluation of the request including but
not limited to administration, legal counsel, consulting costs, printing,
publication costs and all other incidental costs or fees.
3. Following the receipt of the written request, the application form, the
supplemental information and the deposit, the City Manager will notify
the City Council of the request and staff will review the project.
133,7
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In those instances when circumstances dictate review which requires
expertise beyond that of the City, the proposal will be submitted to an
independent consultant hired by the City. Before this expense is in-
curred, the applicant shall be notified and given an opportunity to
withdraw its application.
4. All projects are subject to design review and approval by the City
Council.
5. City staff shall prepare a recommendation on the advisability of the
issuance of an IRB to be presented to the City Council at its next
regularly scheduled meeting following completion of the staff's review.
When possible, this review will be completed within 30 days from the
receipt of the request. It is not possible to expedite this process. The
Council will not take formal action on the request until the review has
been completed.
6. The City Council will then take preliminary action to approve or deny the
applicant's request to issue bonds. If such preliminary approval is
granted, the Memorandum of Agreement will be executed.
If the applicant retains its own legal counsel to prepare Council
proceedings and legal documents, all such proceedings and documents must
have been reviewed and approved by the City's bond counsel and then
received yDirector
meeting in order to beoincluded Finance
on etthe seven
ag
enda sof rthat rior tme ting. Council
proceedings or documents received late will not be added to the Council
Agenda.
7. The applicant should then request that the City Council schedule a Public
Heatheropportunityon the pforosal any memberuofthe
thebpublic toThe
speakiforeoriagainstprovides
the
bond issue.
8. The
public hearing should be adjourned to the next scheduled Council
meeting at which time the City Council will then vote on a resolution to
determine whether or not to proceed with the issuance and sale of the
bonds. If such approval is received, the applicant may then proceed with
the preparation of final documents.
9. The City will review all final documents and if the terms are mutually
agreeable, the City Council will authorize final approval of the terms,
execution and delivery of the bonds.
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MAF AA ELIGIBLE AREA: INDUSTRIAL REVENUE BONOS
f
s�
r
s
s
Enabling Resolutions Containing Legal Descriptions
Resolution No. 80-474
Resolution No. 81-266
Resolution No. 81-290
Resolution No. 81-271
Resolution No. 83-418
Resolution No. 84-122
/337
7
RESIDENTIAL PROJECT REQUEST
APPLICATI0N FOR HOUSING BOND FINANCING
IOWA CITY, IOWA
Note: Three complete copies of this application form and all attachments
must be submitted. All materials submitted with this application must
be legible and suitable for copying.
I. APPLICANT INFORMATION ("Applicant" refers to the proprietor, general
partner or corporate officer signing this application):
Name
Street Address
City, State-a—R-Yip o e
Telephone
II. BUSINESS INFORMATION:
A.
Nam of Business
urrent AUdress of Business
y. a e en p e
Telephone
B.
Proposed Address of Bus ness
City, State dn13 Lip cocle
Type of Bus ness a e s a s e
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III. PERSON WHO SHOULD BE CONTACTED FOR ADDITIONAL INFORMATION:
Name Telephone
Address
City, State an p Co e
IV. Reason for Housing Bond Application/How will Housing Bond financing
enhance your project?
V. Information about Management (List the name of all owners, officers, di-
rectors, and/or partners. Provide the percent of ownership and the
annual compensation.):
Name and Title o wners p
ress
ame and 11tie or uwnership
Address
Name and Titic o wners p
ress
Name and Title o wners mp
Address
VI. Project Cost and Funding
Complete and attach Exhibit A.
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VII. Attachments to be Provided (blank exhibit forms should be utilized):
1. Exhibit B: Supplemental Information.
2. Exhibit C: Brief History of Business.
3. Exhibit 0: Description of educational, technical and business
background for all people involved in ownership or management of the
business.
4. Exhibit E: Personal History Statement - one must be submitted for
each stockholder (20% or greater ownership), partners, officer and
owner.
5. Exhibit F: Personal Financial Statement - one must be submitted for
each stockholder (20% or greater ownership), partner, proprietor and
guarantor.
6. Exhibit G: Financial information - financial statements for the
past three years, statements which are no older than 90 days for the
current year, and earning projections for at least one year,
7. Exhibit H: Listing of co-signers and/or guarantors for the bonds.
8. Exhibit I: Listing of equipment or fixtures to be purchased with
bond proceeds.
9. Exhibit J: Rental Agreements.
10. Exhibit K: Listing of outstanding contracts, notes and mortgages
payable.
11. Exhibit L: Summary of collateral.
12. Exhibit M: Business Liabilities.
VIII. HOUSING PROJECT INFORMATION
As necessary, reference and attach information in response to questions
in Section VIII.
1. General
a. Description of housing project and its services:
b. Is this a renovation or expansion of a residential project
currently in operation?
c. Location of business headquarters:
I
/337
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d. Name and location of other facilities operated by the applicant:
e. Provide a written narrative discussing in specific terms how the
proposed project serves the public purposes described in the
Policy Section of the Housing Industrial Revenue Bond Applica-
tion:
2. Relationship to Iowa City's Economy
a. Description of how this project might relate to the number of
units available to low and moderate income families, elderly,
handicapped/disabled.
b. Dollar amount by which the proposed project will increase the
current property and/or building value:
C. Specify what will be provided as a result of receiving IRB
financing that would not be provided with conventional financ-
ing.
3. Land Use
a. Location of project - Attach plat, map or diagram
b. Size of building(s):
c. Amount of land required:
d. Compliance with zoning:
4. Projected monthly rent schedule: f /one bedroom
S /two bedroom
$ /three bedroom
i /other
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a. Number of units by size (square footage and number of bedrooms).
b. Number of units for low income families (minimum of 20% re-
quired).
5. Describe energy conservation features incorporated into project:
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ESTIMATED PROJECT COSTS
AND SOURCES OF FUNDING
EXHIBIT A
1. COST:
Land
Building: ( ). . . . . . . . . ' ' •
New S
() Purchase ( ) Renovate ... .
Machinery 6 Equipment
Leasehold Improvements . . . . . . .
Engineering . . ' ' ' ' ' ' '
Legal & Underwriting . . ' '
Other: ' . .. ..
TOTAL COST , . . ... , _ ... . S
2. FUNDING:
Industrial Revenue Bonds S
Other:
TOTAL FUNDING s
(Note: Total Cost & Total Funding must equal.)
3. THE APPLICANT MUST HAVE APPLIED FOR CONVENTIONAL FINANCING FOR THIS PROJECT. ATTACH
LETTERS OR OTHER DOCUMENTS VERIFYING THAT THE APPLICANT HAS ATTEMPTED TO OBTAIN
CONVENTIONAL FINANCING.
Signature: Title:
Date:
u
EXHIBIT B - SUPPLEMENTAL INFORMATION
1. BOND PURCHASER INFORMATION:
Name: Address:
(Attach copy of agreement which includes interest rate, maturities,
amorization and pre -loan requirements.)
2. BOND RESERVE FUNDS, IF ANY (DESCRIPTION AND AMOUNT):
3. PROJECTED CLOSING DATE FOR•ISSUANCE OF BONDS:
4. LOCAL ATTORNEY:
Name: Address:
5. BOND ATTORNEY:
Name• Address:
6. BANK(S) WHERE YOUR BUSINESS HAS AN ACCOUNT:
Bank: Address:
Bank• Address:
Bank: Address:
Signature: Title:
Date:
S
/3.37
EXHIBIT B - SUPPLEMENTAL INFORMATION
1. BOND PURCHASER INFORMATION:
Name: Address:
(Attach copy of agreement which includes interest rate, maturities,
amorization and pre -loan requirements.)
2. BOND RESERVE FUNDS, IF ANY (DESCRIPTION AND AMOUNT):
3. PROJECTED CLOSING DATE FOR•ISSUANCE OF BONDS:
4. LOCAL ATTORNEY:
Name: Address:
5. BOND ATTORNEY:
Name• Address:
6. BANK(S) WHERE YOUR BUSINESS HAS AN ACCOUNT:
Bank: Address:
Bank• Address:
Bank: Address:
Signature: Title:
Date:
S
/3.37
1
EXHIBIT C
1. BRIEF HISTORY OF BUSINESS:
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EXHIBIT D j
1. PROVIDE A BRIEF DESCRIPTION OF THE EDUCATIONAL, TECHNICAL AND BUSINESS BACKGROUND FOR
ALL THE PEOPLE INVOLVED IN THE OWNERSHIP OR MANAGEMENT OF THE BUSINESS: {
Name• Title• i..
Management and Educational Experience: i
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Name: Title:
Management and Educational Experience:
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Signature:
Title:
Date:
EXHIBIT C
1. BRIEF HISTORY OF BUSINESS:
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EXHIBIT D j
1. PROVIDE A BRIEF DESCRIPTION OF THE EDUCATIONAL, TECHNICAL AND BUSINESS BACKGROUND FOR
ALL THE PEOPLE INVOLVED IN THE OWNERSHIP OR MANAGEMENT OF THE BUSINESS: {
Name• Title• i..
Management and Educational Experience: i
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Management and Educational Experience:
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Signature:
Title:
Date:
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EXHIBIT E - STATEMENT OF PERSONAL HISTORY
NOTE: THIS FORM MUST BE FILLED OUT AND SUBMITTED AS FOLLOWS:
IQ If o ,ole proarlctmAlp, by the praprietcr: Ul It a partnership. by tech partner;
(c) If s cwwatlw or a aerftopint Emsal. (Q Yf nker person. Iac1o11a1 a hired
by each officer, paretor. W tel l Honallp, .onager, the M, aothorly to Drat
Ii sock holder of M or ire of the DN,a for ark caeolt the lorrottr In the
stock; inpalht of the aollnete.
1. NAME AND ADDRESS OF APPLICANT (FIRM NAME, STREET, CITY, STATE AND ZIP CODE):
2. PERSONAL STATEMENT OF (STATE NAME IN FULL). LIST ALL FORMER NAMES USED, AND DATES EACH
NAME WAS USED.
(First) (Middle) (Last)
3. DATE OF BIRTH: / / 4. PLACE OF BIRTH:
ont Day —Year City/State/Foreign Country
S. U.S. CITIZEN: ( )Yes ( ) No 6. SOCIAL SECURITY NUMBER:
7. PERCENTAGE OF OWNERSHIP OR STOCK OWNED:
8. PRESENT RESIDENCE ADDRESS:
From To Address:
Home Phone Number Business Phone Number ( )
9. IMMEDIATE PAST RESIDENCE ADDRESS:
From To Address:
BE SURE AND ANSWER THE NEXT 6 QUESTIONS CORRECTLY BECAUSE THEY ARE IMPORTANT. THE FACT
THAT YOU HAVE AN ARREST OR CONVICTION RECORD WILL NOT NECESSARILY DISQUALIFY YOU. BUT -
AN INCORRECT ANSWER WILL PROBABLY CAUSE YOUR APPLICATION TO BE TURNED DOWN.
10. ARE YOU PRESENTLY UNDER INDICTMENT, ON PAROLE OR PROBATION?
() Yes ( ) No (If yes. furnish details.. List names under which held.)
11. HAVE iOU EVER BEEN CHARGED WITH OR ARRESTED FOR ANY CRIMINAL OFFENSE OTHER THAN A MINOR
VEHICLE VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which charged.)
12. HAVE YOU EVER BEEN CONVICTED OF ANY CRIMINAL OFFENSE OTHER THAN A MINOR MOTOR VEHICLE
VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which convicted.)
13. HAVE YOU EVER BEEN INVOLVED IN BANKRUPTCY OR INSOLVENCY PROCEEDINGS?
( ) Yes ( ) No (If yes, furnish details.)
14. HAVE YOU OR YOUR BUSINESS EVER DEFAULTED ON ANY BOND OR MORTGAGE COMMITMENT?
( ) Yes ( ) No (If yes, furnish details.)
15. ARE YOU OR YOUR BUSINESS INVOLVED IN ANY PENDING LAWSUITS?
( ) Yes ( ) No (If yes, furnish details in a separate exhibit.)
Signature: Title: Date:
1337
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PAGE I
EXHIBIT F - PERSONAL FINANCIAL STATEMENT At
. If
atcludlq SII tAAbllanm ow.7aya
.olaltt4t Srt.ruJ .
all
Ca.. w Nand L M Wa,
........... s
50rina8 Aa.w I. small ............pay";*Aaern
►a7.al...................t�
U. S. Go -r t S.M.............
Norpay";* to aa.aa
uRates......
Acra a N. R0ul0uh..........
.
(008a1M Mlr. bctlon 7)
Life lam—c.C..a Sr.andr Val" all ..
HMO 11.7aale to DM................�,
Otkr stock..M SaM.
(D.ecae0 601410, . Section S)
..............
(0080/aa�.
In.rllatrl AccOrt (Ante)
!awa'e8f. • Sact/r 71
.............
Real Estate .............
Monaly ►gniru S
(D.erlae . • • • • •oul" 4) • • • •
laenll MM Acsomw (olmo
A.ka.Nll.. 14ea0M Vaal.MonY17
..
Payouts S
•••.•.•••.•
Olar hr.wl fkaerl►...
LOOPS M Life kl.r.n.. 0000. .........�
...........
(Duulaa.A..rta- w. Sectlr S) —�
aVygO. on Real E.ute .............�
Dalr Aeare
fo.In/at . mnrarvw - talion 1)
...
(D..rIM
Unsold Ton ..........
AtaatR'ealr. S.ctift
• 6 t) )
A ............ �
(Dna/M .ConscowLa'r:. soul" 7)
Other Liabilities .............
.......�
(D.calM. nare.Shia • Halon S)
T.el LlaalllNu. .. ... 0000...
_
Mae woo .. .. .. ........... .......�
Trel.a
0000. .. • . • ..
Sections 1. Searaa of laew
TOW ... • . • • • .. • . • . • a�
fDnvlM bell. 011 ltor Ilam Ia Chia SOnlr
CDtITIMWMT LUIULITIEf
s.ln.........................t
Nn Ilt.a.e.ra IneOnr............
AS Eamon r C"%kr
Real Estate Incar.................
Legal Claims .M J.Iaaytu.....
Omar Incpon foo.rlao
... 0 0 0 0
F.•I.IM fon 4Incw Tu Ponl ........
..........
-�
oar s.echl o.kt
Dosul.tlon of Inns. Il.ta I In Soul. 1
""'
Llh Inmwa N.II (Gln (,w .nawitt o(sollc/n - rr e(crWn7 and bene ficlrla.)
I. Mena h7aa16 to Sankt W Otaan
Aauutt r
of I N "Ity I Mr
Gcanantrd.
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(HIBIT F - PERSONAL FINANCIAL STATEMENT
PAGE 2
SNednl i. allte Slth .W Sa.an 61re tilled sW Mllsted Stub ape tnU (UN UaMna 91 it aa[ecrnll
N4. N Sle,u Mw. M Seewhb8rbYec Valw Smf w s Door
Gn wlslln Ase
ittlew a. asset Irate Osrsed. (Lill S_cpenal agnaulr. Use saerba.nal shoots 1/ Necessary. tech shape •n M lNnlryed ON •
INerS@aNt u this elaraateor aN siraedl. (Abe Wrltec elnther rrMe"r A sM
Title I. N c.rM INS@ Isrwate. ahluest detain. o horn).
TIM a/ rr"New
Nus of we —"—,Cy (Cite, sell Suu)
CHOW Can to
On. IMWaed
presents marked Vako S
TM Aaaaaaant Vale, S
Nae, W Aecr.as .t N.tete M FWq.N (Clq all Suu)
Dal. M Mnlpas
041I0,01 diseases S
4laasa S
rtefalty
Thar N payment
M IYn{Nell. Ise.. arrestn NIWwN. 11"IW4 nNao1M NIWe,tNa
sttlee S. D11e, ►n.nors present. (Decvlha .ed teddy is ae,ersced, sora ten sed aalr.0 a(anlSap WLrW .stent of aarepp
arse. of PIPs eed y leuaSNen, /aacrlbe IauNe
yecr.►
7.a18011 d, Otte, Assn. (Describe)
isnlew T. N Tans. (tbscrlbe U Null. to t1 type. to eeaN parable. -Asa Iw, awaael. and ►W, it say. rraMV I we Ilse. //
M. wecMal
taalaa S. O11te UsN1111a Msscr1Y. to Ntelu
(11 or (114).sued IN abe.e end the Suraeselu cn.orlllW in as Idlsdelaa herein in 4 nue new "WON sortel.alt of (or) or (") /ueaclsl
dowillaw as of M door sorted Nereus.
SIGNATURE
TITLE
DATE
1337
EXHIBIT F - PERSONAL FINANCIAL STATEMENT
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Lwin e, 11e0161 4sor O.aa, (Llfl no .reel lawenlr. Use 4eoele,Naa IoeY 11 ,scOary. 9464 LM ,NO w .0,.11(lee as e
smo. m It lel@ Itwewea IM Ilpeel. (Also feelle1, .Avow wenrtr Is tw n# or title 411/ea1. Ultra of Idle. I foal.
Title in .4.ewf of
Tres et wo1,wlr
.egg of wefw4 (Qty w Sam
On{Ilnl can to (.vel (al {
Ow Iwaune
'
ae1,wll howl v1,1w {
Tr AUn vshw 1
Ite.a w Anne. of Melew of n1,np{e IGry, w Aa1,)
cam a MwPp
aV.el A. e
iki s I
rrYllr
Tome of ►w.N.t
YeY of Fwtple. I.e.. gwtwlt w olilNeww, It alimumt geealee eelimM les
{owln 4. now g� fi.InL (Lia wo WI94 Ioewe111L Yu alt"b of seas If .we1,1,wr. gees oew sent be IIMI(Ise 1,4 4
rami t to ten mnwea W tlpoel. (Also 444,1801, .Mew wNertr Is twwoe 0, Utle 44.e.te, dismal of gide, w 4,1,1.
Tit" n " foes M
Trate of wstlwer
min,"a w weowlr l a ales ")
ON{il"i Ga w.(.nl (al {
Om f1Ya"M
pA ftnea valve I
TO AIMU l verse g
Maw w Aewees 41 melees M rUapp icer we $Wel
Das of "wrpp
OtIlea AW t
11418,14,11
r-eeM'
Teat of hr.N.t
YW of mmaso. i.e.. wnws w eelimN u It n111"IIw1 "$else ealnew.an
Ualw 4. AMA gave o.INe, tuft nate pllfl oewaelr• use 1e1,eloN.nl I/eat 11 ,aessery. gees IAM Awa N iee.linee 41 4
8"01 a to "l1, aaowa 1,.e tlpool. (Ala 40,1441, .ewer..ewer le IwwN M title 41,...41,, eallea of 19th. w 7"1,).
nue is .4 e N
Tres of Abeam
osoa at wfowq t n fees SUCal ,
Onllol Gnt n f.Nl fuel e
Ow evwr.r
/Mad leorbe voles {
Too A1,enw.wlt Vele 1
XW W Aewees d Nelew M nwt{s1e (t::4 1,.e {Yo)
Ow of Fwtp{e
OnllnlAwt 1
Mlwo {
fneYlry
r"4 of eq.Nnt
YW M I'Mlep. l•1,•. nn'.N w 4dilftu G It gel1mv.1 goals. galauWlo
Signature: Title:
Date:
1337
EXHIBIT G - FINANCIAL INFORMATION PAGE 1
This is the most important part of your IRB
prepared in accordance IPRlicaticn. All financial data must be
accordancencenee wivith generally ACClpted accounting principles. Incomplete or,
without ac financial statements any result in the entire application being returned
without action. Please read the following instructions carefully. You oust eosgly with
one o[ the two paragraphs below,
L.
Ir YOU ARL APPLYING AS AN L%ISI'INC BUSINESS:
A, Attach hereto financial ■tataments consisting of a balance Sheet AND A
profit AM lou ss ststaMftt for the past thrfiscal yeses or sine the
start of the business, whichever is less.
B. Attach hereto a balance sheet AND a profit and loss statamnt no older
than 90 days from date of filing—application.
C. Reconciliation of Net worth:
Beginning Surplus or Net worth 19 19� Current Year to Data
Profit or Loss
Dividends . • - • • . • • ' '
withdrawl3 , , . • • • • • • '
Paid In
Revaluation of Assets • • •
Other Additions (Explain)
Other Charges (Explain)
Ending
D. Hors: Aging Accounts Receivable
Accounts receivable and Under 10 daysAccounts Payable
aecountc payable cwt 30-59 days
reconcile with current 60-69 days
balanoa sheet to be 90-119 days
Provided with Application.120 days i over
Uncollectible
Totals
(a) All of the above financial statements MUST be signed and dated
A Partner or an officer of the business. by the owner,
(bh If financial statements are not available for prior years, or are inadequately
prepared, copies of the business Federal Income Tax returns may be substituted.
(t) All personally owned assets and liabilities such as home, house
so forth should not b included on hold goods and business financial statements.
(d) If pace yrnings ao not show the abilityto repay the loan r
obligations, attach a projection of eaings. P y Proposed °red existing
2, IP YOU ARL APPLYING FOR IRB'$ I'O START' A NLw BUSINESS OR BUY AN LUSTING BUSINESS:
A. A detailed projection of earnings muse be
attached hereto.
B. State below the reason the present owner (seller) is selling his busineast
C. Attach copies of the Seller's profit and lou statement for the
• past thr a years.
U. Attach hereto a Copy of the Purchase Agreement.
SIGNATURE TITLE
GATE
1337
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EXHIBIT G FINANCIAL INFORMATION PAGE 2
FICUECTION
FOR YEAR
Business Room and Address
AMOUNT
SALES
6061"lult Inventory S
Merchandise Pvrchosed
Total
Lads Zodl itnv
Inventory
Cust at Men
CLOSS PROFIT
EVENSKS:
Officers. Partners, or
Owners salaries
Labor
Supplies
Ai;vertlelag
Travel
Deproclaclom
Freight and Postage
Insurance sqm"
Interest gap@&&*
utilities
Accounting and Legal
Real 4 Foremal. Taxes
Telephone
Repairs 4 Watensoce
MIscoLlameows gxpnoo
Auto or Track Upon"
Rut or Lease Rxpnaa
TOTAL ZV=S9
Operating Profit
Other tacomme
Otbar Isposse
19T PROFIT (Before lecom.Taxes)
Istimated late" Taxes
MIT PROFIT
SIGNATURE TITLE DATE
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j EXHIBIT H
! 1. LIST BELOW THE NAMES OF ANY CO-SIGNERS AND/OR GUARANTORS FOR THE BONDS (YOURSELF,
4
SPOUSE, PARTNERS, OFFICERS, DIRECTORS, OTHERS (A PERSONAL FINANCIAL STATEMENT MUST
BE ATTACHED HERETO FOR EACH INDIVIDUAL LISTED):
Name: Address•
Name• Address•
Name• Address•
EXHIBIT I
1. LIST BELOW ALL EQUIPMENT AND/OR FIXUTRES TO BE PURCHASED WITH THE BOND PROCEEDS:
COST NEW USED
TOTAL
EXHIBIT J
1. IF BUSINESS REAL ESTATE IS OR WILL BE RENTED, ATTACH A COPY OF THE LEASE. IF NOT
AVAILABLE, STATE BELOW THE TERMS OF THE EXISTING OR PROPOSED LEASE.
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Signature: Title: Date:
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EXHIBIT K
I. PLEASE LIST ALL CONTRACTS, NOTES AND MORTGAGES PAYABLE AND RECONCILE WITH FIGURES ON
BALANCE SHEET (INDICATE BY AN ASTERISK ITEMS TO BE PAID FROM LOAN PROCEEDS). DO NOT
INCLUDE PERSONAL DEBT SUCH AS HOME MORTGAGES, DOCTOR BILLS, PERSONAL AUTO LOANS AND
SO FORTH. INCLUDE ONLY DEBT OWNED BY THE BUSINESS. DO NOT INCLUDE TRADE ACCOUNTS
PAYABLE BELOW, ONLY NOTES AND CONTRACTS WHICH CONSTITUTE A FIXED OBLIGATION OF THE
BUSINESS SHULD BE ITEMIZED.
TO WHOM PAYABLE AMOOUiNTTl ORIGINAL BALANCE INTEREST MATURITY ENT RATE OF PAYMENT COLLATERAL
EXHIBIT L
1. SUMMARY OF COLLATERAL
Land Z Building
Inventory
Accounts Receivable
Machinery 6 Equipment
Furniture b Fixtures
Other:
TOTAL COLLATERAL
PRESENT MARKET COST LESS
YALUE DEPRECIATION
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EXHIBIT M
1. DOES YOUR BUSINESS HAVE ANY CONTINGENT LIABILITIES? ( ) Yes ( ) No
If yes, please explain below. Accounts or notes receivable discounted or sold with
endorsement or guarantee should be explained.
Signature:
Title:
Date:
1337
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III. PERSON WHO SHOULD BE CONTACTED FOR ADDITIONAL INFORMATION:
Name Telephone
Address
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City, State and Zip Code
IV. Reason for IRB Application/How will IRB financing enhance your project?
V. Information about Management (List the name of all owners, officers, directors,
and/or partners. Provide the percent of ownership and the annual compensa-
tion.):
Name and Title z of Vwners-FTp--
Address
Name and Title S of Ownersh—fp--
Address
Name and Title Z of Ownership_
Address
Name and Ti le o wners p
ress
VI. Project Cost and Funding
Complete and attach Exhibit A.
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VII. Attachments to be Provided (blank exhibit forms should be utilized):
1. Exhibit B, Supplemental Information.
2. Exhibit C, Brief History of Business.
3. Exhibit D, Description of educational, technical and business background
for all people involved in ownership or management of the business.
4. Exhibit E, Personal History Statement - one must be submitted for each
stockhoid (20% or greater ownership), partners, officer and owner.
5. Exhibit F, Personal Financial Statement - one must be submitted for each
stockholder (20% or greater ownership), partner, proprietor and guarantor.
6. Exhibit G, Financial Information - financial statements for the past three
years, statements which are no older than 90 days for the current year, and
earning projections for at least one year.
7. Exhibit H, Listing of co-signers and/or guarantors for the bonds.
8. Exhibit I. Listing of Equipment or fixtures to be purchased with bond
proceeds.
9. Exhibit J, Rental Agreements.
10. Exhibit K, Listing of outstanding contracts, notes and mortgages payable.
11. Exhibit L, Summary of collateral.
12. Exhibit M, Business Liabilities.
iVIII. COMMERCIAL PROJECT INFORMATION
As necessary, reference and attach information in response to questions in
Section VIII.
1. General
a. Description of business and its services:
b. Is this a renovation or expansion of a business currently in opera-
tion?
C. Location of business headquarters:
d. Name and location of other facilities operated by the applicant:
e. Number and reason for any relocation since 1955:
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f. Synopsis of five year growth plan of business (attach narrative if
necessary):
g. Provide a written narrative discussing, in specific terms, how the
proposed project serves the public purposes described in the Policy
Section of of the IRB Application:
2. Relationship to Iowa City's Economy
a. Description of other businesses this project might attract to Iowa
City:
b. Dollar amount by which the proposed project will increase the current
property and/or building value:
c. Specify items of equipment which will be purchased as a result of
receiving IRB financing:
3. Employment Factors
a. Number of current employees: full time part time.
Number which are seasonal enp oyees _ full—f me _ part time.
b. Number of new employees: full time _ part time.
and/or
Number of employees retained: _ full time _ part time.
c. New employment for:
1. Low and moderate income residents Yes No
2. Those enrolled in a government-
sponsored job training program: _
3. Recent university or community
college graduates:
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4. Others (specify)
d. Minimum educational requirement of employees
Less than twelve years education - number of employees: full time
=part time
Twelve years education - number of employees: full time
= part time
Sixteen years of education - number of employees: full time
= part time
Sixteen + years of education - number of employees: full time
= part time
e. Current payroll: t annual or f monthly.
Projected payroll in Iowa City: f annual or f monthly.
f. Will project construction employ: i . Workers from Jo nson ounty
labor pool _ Yes No
4. Land Use
a. Location of project - Attach plat, map or diagram
b. Size of building(s):
C. Amount of land required:
d. Compliance with zoning:
5. Energy Conservation
a. Description of energy conservation features incorporated in project.
ESTIMATED PROJECT COSTS
AND SOURCES OF FUNDING
EXHIBIT A
1. COST:
Land
S
Building: () New ( ) Purchase ( ) Renovate . . . . . .
.
Machinery 6 Equipment . . . .
Leasehold Improvements . . . .
. . .
Engineering
.
Legal 6 Underwriting . . . . .
Other:
TOTAL COST
2. FUNDING:
Industrial Revenue Bonds
Other:
I
TOTAL FUNDING $
(Note: Total Cost & Total Funding must equal.)
3. THE APPLICANT MUST HAVE APPLIED FOR CONVENTIONAL FINANCING FOR THIS PROJECT. ATTACH
LETTERS OR OTHER DOCUMENTS VERIFYING THAT THE APPLICANT HAS ATTEMPTED TO OBTAIN
CONVENTIONAL FINANCING.
Signature:
Title:
Date:
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EXHIBIT B - SUPPLEMENTAL INFORMATION
1. BOND PURCHASER INFORMATION:
Name: Address:
(Attach copy of agreement which includes interest rate, maturities,
amorization and pre -loan requirements.)
I
2. BOND RESERVE FUNDS, IF ANY (DESCRIPTION AND AMOUNT):
3. PROJECTED CLOSING DATE FOR ISSUANCE. OF BONDS:
4. LOCAL ATTORNEY:
Name: Address:
5. BOND ATTORNEY:
Name: Address:
6. BANK(S) WHERE YOUR BUSINESS HAS AN ACCOUNT:
Bank: Address:
Bank: Address:
Bank: Address:
Signature: Title: _
Date:
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EXHIBIT C
1 1. BRIEF HISTORY OF BUSINESS:
EXHIBIT D
1. PROVIDE A BRIEF DESCRIPTION OF THE EDUCATIONAL, TECHNICAL AND BUSINESS BACKGROUND FOR
ALL THE PEOPLE INVOLVED IN THE OWNERSHIP OR MANAGEMENT OF THE BUSINESS:
Name: Title:
Management and Educational Experience:
Name: Title:
Management and Educational Experience:
Signature:
Title:
Date:
1337
EXHIBIT E - STATEMENT OF PERSONAL HISTORY
NOTE: THIS FORM MUST BE FILLED OUT AND SUBMITTED AS FOLLOWS:
tat at a sate paplelwNU. by tee NWr10lw: (\) If a prNerseO. by Nee WSW;
(A t\ a [w,pclr w a Ind N,ec [ravel. (a) Mr New WSW. /charity a hired
y lace Officer. O Il 1 Or W If the all/. for We r, t t eelenhll to lthel
y N[e titan a! Iqt K Nn H lar Nllq "' as [all le[ lon,wr, 1e lar
\lK\{ Nnayee►nl a1 the Wlbru.
1. NAME AND ADDRESS OF APPLICANT (FIRM NAME, STREET, CITY, STATE AND ZIP CODE):
2. PERSONAL STATEMENT OF (STATE NAME IN FULL). LIST ALL FORMER NAMES USED, AND DATES EACH
NAME WAS USED.
1
(First) M d e Last
3. DATE OF BIRTH: / / 4. PLACE OF BIRTH:
F nih — a�Y wear City/State/Foreign Country
5. U.S. CITIZEN: ( )Yes ( ) No 6. SOCIAL SECURITY NUMBER:
7. PERCENTAGE OF OWNERSHIP OR STOCK OWNED:
B. PRESENT RESIDENCE ADDRESS:
From To Address:
Home Phone Number ( ) Business Phone Number ( )
9. IMMEDIATE PAST RESIDENCE ADDRESS:
From To Address:
BE SURE AND ANSWER THE NEXT 6 QUESTIONS CORRECTLY BECAUSE THEY ARE IMPORTANT. THE FACT
THAT YOU HAVE AN ARREST OR CONVICTION RECORD WILL NOT NECESSARILY DISQUALIFY YOU. BUT
AN INCORRECT ANSWER WILL PROBABLY CAUSE YOUR APPLICATION TO BE TURNED DOWN.
10, ARE YOU PRESENTLY UNDER INDICTMENT, ON PAROLE OR PROBATION?
( ) Yes ( ) No (If yes, furnish details.. List names under which held.)
11. HAVE YOU EVER BEEN CHARGED WITH OR ARRESTED FOR ANY CRIMINAL OFFENSE OTHER THAN A MINOR
VEHICLE VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which charged.)
12. HAVE YOU EVER BEEN CONVICTED OF ANY CRIMINAL OFFENSE OTHER THAN A MINOR MOTOR VEHICLE
VIOLATION?
( ) Yes ( ) No (If yes, furnish details. List names under which convicted.)
13. HAVE YOU EVER BEEN INVOLVED IN BANKRUPTCY OR INSOLVENCY PROCEEDINGS?
( ) Yes ( ) No (If yes, furnish details.)
14. HAVE YOU OR YOUR BUSINESS EVER DEFAULTED ON ANY BOND OR MORTGAGE COMMITMENT?
( ) Yes ( ) No (If yes, furnish details.)
15. ARE YOU OR YOUR BUSINESS INVOLVED IN ANY PENDING LAWSUITS?
( ) Yes ( ) No (If yes, furnish details in a separate exhibit.)
Signature: Title: Date:
1.337
0
PAGE 1
EXHIBIT F - PERSONAL FINANCIAL STATEMENT As
H�
Naca wall Mina". Iuiliewas Slf Cans to/ Mrske aN opens
pabaining Saurr/
SOCIAL SECIIIYTT NO.
w mala wrpke log4Nnt 35,10musalk
fbLio uscVw all fwitlusi using "No" An "Mw"" Molls Necessity
ASSETS
LIABILITIES
Cash "Nand A In Banks............ i
Accounts Payable
Savings Account In Banks • ...........
..................t
Nates payable" Unks.........
Y. S. G.rtkear Slants ..............
•.....
(Dltnl&* allow • Soul" S)
Ascan, A s wan Rekel.cila ..........
Nwaa payable "OIMs...............
Life lns~cnGke SvNWr VAIw Only • •
(Oasn/N &*Ian • Sanlw S)
cow Sticks rN Bwb ..............
IninluVmt Accawt (Ara) .............
(Describe• &*cotta-apw • Saal" S)
"Manor Payments i
NMI tiYr.l,..• ....................
ite"llrwt AKiwu WOW t
(Describe - ywriW . Saclike a)
.... ......
ItiatAlf /nywkete A
Autemablle . Meant Valw ...........
Laws w llh Inca ..............
Otltr hrawl Mirq..............
.......
1'Yn/epos wt Seal [tun .............
(Goat&* •AwwR Fier. Seal" S)
IDawtbe - latraritde - Sonia q
Dur Aline .....................
Wpold Tkew.........A............
(OiinlM-Aa.wci-tur. Sactl" i)
(Dain#&* • •--•••• •"-. Stair 7)
Dow LWIIltW....................
(Girl&* - nwna e W - San/ke B)
Tmi lWIIIYke....................
Not Vann ........................
Tem...............t
Tal...............i
foctiw 1. SnKE d !acme
(DouUa blow all items Pitted In gala So"Ienj CONTINGENT LIASILMaS
Salary.........................i
dY
1%11141011.u...............i
:11L
Inwarr Interna.............
yEn
J:AliWNr
It aNCa+NPkr•w.........
Il"I Esu" Income. .
Mwlsi" /r Padres Inane Tr
Our Iwrke (Dlsat&*) .............
........
ONtr Spode# Dan
..................
Desulptlw of low Ilsnd In Aidan 1
Life Insurance Hold (Cora fact amour of policies - wttr is, company W be"ficiwln)
SUPPLEMENTARY SCHEDULES
Sections 1. Memo Payable to Wks ANI Dlboli
Anwwt a/ Like Tani of I Iwvlry, "anEndorsed. Guwwuad,
Name and Aidrua of Holds, of Now 0,111"I Sal. present Sol.Ron"—,- at Loan r sacured
7 i i
1337
.XHISIT F - PERSONAL FINANCIAL STATEMENT
PAGE 2
ge{Ilw i. Otbr SIKH• Y1• beeds: Olrr listed and w.Icel84 Stocks and Sones (U[1 nMte11 (heat It he[nam11
Mahn Volta 5019.91111 Dna
No. N sharesNastes f Snwltbe Carl wtnlw Am
f•ctl.w d, Ilwl letter Ow.ad. (List MCA lar[11 separately. Use •uMhnwnul sheet[ It neuoa17. Etch [beef wn M identified0
ennNbwr te Ibis efeteww end 1180841. (Also efrises whether grM.nt, Is covered by eft(e Instance, ehetrea a( this. m betq.
Title Is In erste 84
Type of /•'very
••• of M•Prgy (city are liters)
,
Original Cm to (w) (w) g
DAN ►wchss84
present wrkat Valu• S
Two Assessment Valva t
Naw and Address M M•N, of Mmtg•g• (City ane State)
pace of Mrtga e
Original Amermt 1
same g
Mately
TOM of /ay..w
Ina of Mmaga80. I.e.. air— m MIIgwIL II delMauonI donrlM Mllntuswms
sm"on S. Other Imsewm et+mfir. mosesiM ad N ear is a ped. a -Ns gess a84 00A1es I f mmgege Misr oN ealewt of ~80/9
• uewa of por a ad N dellagwM, Nwlge.1a16goom.)
/woes L 011e A"w . MeavlMl
S•Nw 7. Wray Taese, MosmtM M Nall. Ogg, tye. [o when payable, wMn eon, emeent. e84 whn. If esy. ►Ir•rtr • Waif". If
My. earaches)
Swum[ L Omar Lirilltla (OesmlM M NmlO
(1) m (O.) cruk she ab•.• and the gutwrtts contained In On a.dudulra hmele Is a der and Karate sutrar.t of (m7) •r (sur) financial
condition as of am Nm mad bmefe.
SIGNATURE
TITLE
DATE
/337
EXHIBIT F - PERSONAL FINANCIAL STATEMENT
PAGE 3
IwiM o. Now to OWN. (List alio Iwtsl NgaM"lt• Use I,holooe,11/ IN111 1f ,etellwT• Each shelf ,VII es 1elNlfl11111
8voa# m 111411 /11101am oat IIpNI. (AIN 11,1se1 wM w W~, is IwwN 1111111 IOwe,N, 111Ver of title. w met.
TIMI I. A,,m N TIP of wee1M1 .
ewe" ad wNw" ( q w1 rl
alilml CMI 4 (MI (set t
Or 'tlilweel
Teleses Npho1 Vet" I
Too A m,mm Val" I
MM «Amass of lemw of Morttege ('A «INN)
Ow of Mpttge
alllool A111Mt t
INMN I
McYi1f
Tww1 N /,M,Mt
wW of p"Baga. I.e.. Swtw11 w oeilaq , 1t lellgewtt Searles Nllgewelel
>iM 1. IMI game, Alwt, (Lill hots wwt11 /eeeIWU/• Use IeMMWN11 INNS 1f ahoUNry. (ole show wo11 M 1/hohflee 111
I,MIoraMt 11 UII MN W 1/t11,011h 1AI81 001ho1 w1NAe1 0111Ms Is ewe1N is IM11 iaeMNi1. #mw
IMIe, so 1w11.
Title , M arm « TTho 1t raw"
Ace—Ma ( r« Simi
OMplrl CSN sojw1)(Wl /
Ow ttewwe"
flwewM ftlNe{ Val" /
TM NNae VIM I
Meese Am AN a If Melees of r"Moe (Vey « IWeI
Ow I Mwpga
altlgl Amapt t
Balance j
sAeeM
Tww1 el hT,lwlt
MW N Mwlgega• i.1., ewtwl w 4141ig,wlt. It Mllgllwt seem" w4MIle,Slu
Seemed- Or Ne avert. (Lilo 1411 MRIs 1e/re1111. YN IeM11weN11 1No11 if Ihoe1111T, a111 INN aryl ho f1MtInN 1t t
/ll1e084al"119 IIB sWU~ W offN t. (Abe ae,IN1 VmW pwow" is co~ es title IIlwe,ta• NNNW M this, w Mal.
Tlhe Is M ,eve or
TIM 1f weW"
Amass 80 w,1w" tQw Me saw$
OMIIMI L•W le (sell (WI /
Ow /eM1uoN
Mewl ltelesl Valw 7
TM Aamosom Volve /
Mew « Amwa1 of MoNIw of Mengege ('4 w1 rtel
can of Mortgage
00191Ml AarMt 1
Mlw t
Itiellq
Team of Pw~t
low of M 64149. 14„ ewtwtt w "1101 . It NIIMew1 4"Wlle eellae,wNlu
Signature: Title:
Date:
/337
i
EXHIBIT G -FINANCIAL INFORMATION rnut i
This is the most important part of your IRB application. All financial data must be
prepared in accordance with generally ACCepted accounting principles. Incomplete or'
inaccurate financial statements may result in the entire application being returned
without action. Please read the following instructions carefully. You must comply with
one of the two paragraphs below:
I
1. Ir YOU ARE APPLYING AS AN EXISTING BUSINESS:
i
A. Attach hereto financial statements consisting of a balance sheet AND a
profit and lou statement for the past three fiscal years or sinca the
start of the business, whichever is leu.
I
j B. Attach hereto a balance sheet AND a profit and loss statement no older
than 90 days from date of filing application.
C. Reconciliation of Net Wortht
19_ 19_ Current Year to, Date
Beginning Surplus or Net worth
Profit or Loss ,
Dividends . . . . . . . . . . . . .
Withdrawals . . . . . . . . . . . .
Paid In , . . . . • .
Revaluation of Asests ,
Other Additions (Explain) .
Other Charges (Explain)
Ending
D. Mote: Aging Accounts Receivable Accounts Payable
Accounts receivable and Under 30 days
accounts payable must 70-59 days -
reconcile with current 60-89 days
balance sheet to be 90-119 days —
provided with Application.120 days a over
i Uncollectible
Total.
(NOTE: (a) All of the above financial statements MUST be signed and dated by the owner,
a partner or an officer of the business.
(b) If financial statements are not available for prior years, or are inadequately
prepared, copies of the business Federal Income Tax returns my be substituted.
(c) All personally Owned Asmeta and liabilities such as home, household goods and
so forth should not be included on the business financial statements.
(d) If past earnings do not show the ability to repay the loan proposed and existing
obligations, attach a projection of earnings.
2. Ir You ARE APPLYING rOR IRB'S To STARS A NEv BUBINESs OR BUY AN msTINO BOsnm5st
A. A detailed projection of earnings must be attached hereto.
B. State below the reason the present owner (seller) is selling his business
I
C. Attach copies of the Seller's profit and loss statement for the past three years.
D. Attach hereto a copy of the Purchase Agreement.
SIGNATURE TITLE DATE
1337
E%HIBIT G -FINANCIAL INFORMATION
PROJECTION
701 TEAR
Ruoinees Nue and Address
AMM
SALES i
Sogimaing Inventory 1
Norchaedlse Purchosed
Total
Leu Ending Inventory
cuet of Salo
GLOSS PROFI7
EBINsts:
Officers, Partners, or
Owers salsrns ,
Labor
Supplies
Travel
Depreciation
Freight aed Postage
IMYrsneo gap"" '
Interest Isyesma
utilities
Accounting and Legal
Mala Passional Taws
Telephone
Repairs A Nsfstaww$
Niseollaaeous Iapeane
Auto of Truck gnponne
lent or Lease Expense
TOTAL ZVENSE
operating Profit
Other Intone
Other Iapease
NET PRORT (Reform Insane Taros)
Estimated Imeene Tares
NET PROFIT ,
SIGNATURE
PAGE 2
TITLE DATE
1
.1337
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Ar -
n
EXHIBIT H
1. LIST BELOW THE NAMES OF ANY CO-SIGNERS AND/OR GUARANTORS FOR THE BONDS (YOURSELF,
SPOUSE, PARTNERS, OFFICERS, DIRECTORS, OTHERS (A PERSONAL FINANCIAL STATEMENT MUST
BE ATTACHED HERETO FOR EACH INDIVIDUAL LISTED):
Name:
Address:
i
Name: Address:
I
i
Name: Address:
i
EXHIBIT I
1. LIST BELOW ALL EQUIPMENT AND/OR FIXUTRES TO BE PURCHASED WITH THE BOND PROCEEDS:
COST NEW USED I
i
i
j
i
TOTAL
j
EXHIBIT J
1. IF BUSINESS REAL ESTATE IS OR WILL BE RENTED, ATTACH A COPY OF THE LEASE. IF NOT
AVAILABLE, STATE BELOW THE TERMS OF THE EXISTING OR PROPOSED LEASE.
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Signature: Title: Date:
/33%
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EXHIBIT K
1. PLEASE LIST ALL CONTRACTS, NOTES AND MORTGAGES PAYABLE AND RECONCILE WITH FIGURES ON
BALANCE SHEET (INDICATE BY AN ASTERISK ITEMS TO BE PAID FROM LOAN PROCEEDS). DO NOT
INCLUDE PERSONAL DEBT SUCH AS HOME MORTGAGES, DOCTOR BILLS, PERSONAL AUTO LOANS AND
SO FORTH. INCLUDE ONLY DEBT OWNED BY THE BUSINESS. DO NOT INCLUDE TRADE ACCOUNTS
PAYABLE BELOW, ONLY NOTES AND CONTRACTS WHICH CONSTITUTE A FIXED OBLIGATION OF THE
BUSINESS SHULD BE ITEMIZED.
ORIGINAL ORIGINAL PRESENT RATE OF MONtHLY
TO WHOM PAYABLE AMOUNT DATE BALANCE INTEREST MATURITY PAYMENT COLLATERAL
EXHIBIT L
1. SUMMARY OF COLLATERAL
PRESENT MARKET COST LESS
VALUE DEPRECIATI01
Land L Building
Inventory
Accounts Receivable
Machinery 6 Equipment '.
Furniture ` Fixtures
Other:
TOTAL COLLATERAL
EXHIBIT M
1. DOES YOUR BUSINESS HAVE ANY CONTINGENT LIABILITIES? ( ) Yes () No
If yes, please explain below. Accounts or notes receivable discdbhted or sold with
endorsement or guarantee should be explained.
i 1
Signature: Title: Date:
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City of Iowa City
MEMORANDUM
Date: June 28, 1985
To: City Council
From: City Manager and Director of Fin ce(t��
Re: Property and Liability Insurance Renewal
The City's property and liability insurance was renewed on June 26, 1985.
Attached is a chart which shows premium costs for the past five years, the
premium costs for next year and the budgeted amount for next year.
Although a sizeable increase in costs was anticipated, the 200% increase
in premium is unprecedented. The insurance market has shrunk for public
entities. Currently all types of commercial insurance are seeing rate
increases of up to ten times. In fact, companies increasingly are not
even interested in writing certain types of business. The insurance
coverage we have approved represents the lowest cost we could obtain from
any carrier, including Lloyds of London.
The premium costs will exceed our FY86 insurance budget by $439,000. This
increase obviously will have a significant negative impact on the City's
fund balance. It is not uncommon to hear of court judgments in the
millions of dollars and the City cannot afford to be without any protec-
tion from a catastrophic loss. Claims filed against the City are increas-
ing annually which is similar to the trend nationwide. Even though the
cost is outrageous, it is less than a potential loss to the City from a
very large lawsuit.
The coverage has changed in several areas. First, in the past the City
purchased umbrella coverage which provided excess liability protection up
to $10 million. The carrier which had the lowest quote for the $10
million umbrella would not provide coverage for Airport Liability or
Public Officials Liability. The umbrella liability market is currently
very restrictive on providing coverage for professional liability.
Finally, we were able to increase the coverage on the Airport Liability
policy to $10 million. However, we could only increase the coverage on
the Public Officials Liability policy to $5 million. Therefore, we do
have less coverage for public official liability exposures.
On another exposure for which the City has never had a claim we have
decided to self -insure because the coverage would have cost an additional
$38,767 and police officers currently are covered for this exposure under
our Police Professional Liability policy.
The third change involves the deductible for the fire and extended
coverage on our buildings. This has been $5,000 in the past and it has
been increased to $10,000 for next year.
/33g
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Page 2
The liability insurance marketplace for public entities has been shrinking
in the past year. This is due to two primary factors. First, insurance
companies have been experiencing increasing loss ratios and second, the
exposures for public entities have been increasing.
The 1983-84 losses reported are the worst underwriting losses in history.
Attached is a chart which shows underwriting profits and losses for the
last 31 years. In 1984, these losses exceeded $21 billion. As a result
of these losses, there has recently been a dramatic change in underwriting
and pricing by most companies for most types of risk.
The legal climate and the recent trend in court rulings have broadened
liability exposures for public entities and this has increased claims and
losses. The frequency of lawsuits against public entities is reported to
be up 400% in the past five years. Insurance companies are therefore
demanding significant price increases for less or more restrictive
coverage. At the same time, many insurance companies are reducing their
writings or withdrawing completely from the marketplace.
Although we had started working on the renewal process in late March,
quotes from insurance companies were not received until late last week.
Some of the quotes, even then, were inadequate and incomplete. We had
Investigated higher retention levels and self-insurance but due to the
tightness of the marketplace we were not able to develop an acceptable
program which used these alternatives.
The only other complete proposal received would have cost an additional
$196,164 with less coverage. We expected a proposal for a self-insured
program. In early April, two firms had indicated interest in providing
such proposals to the City, but neither firm offered a complete proposal.
We do plan to start evaluating insurance alternatives again in the near
future as it may be more cost effective for the City to develop its own
self-insurance program or develop a liability insurance program for all
Iowa cities through the Iowa League of Municipalities, such as has been
accomplished for workers' compensation insurance. There is certainly no
guarantee that insurance premiums will not increase further and yet the
City cannot afford to not buy insurance and be completely unprotected.
ry/sp
11-337
■
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PROPERTY AND LIABILITY INSURANCE
JUNE 26, 1985 RENEWAL DATE
FY81 FY82 FY83* FY84 FY85 ------- FY86 -------
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGET
V- --F- --F- -r- -$- -f- -T- I !
Comprehensive General Liability
& Vehicle Insurance
102.019
92.301
116,723
130,842
167,338
474,467
217,500
Buildings. Fire & Extended
Coverage
48,369
65,600
23,080
34.568
38.592
55,718
42,400
Umbrella
47,0010
(A)
47,000
(A)
15.000
9,000
23,204
166,500
30,200
(B)
(B)
(B)
6)
Airport Liability Umbrella
X
X
X
X
X
4.800
X
(B)
Public Officials Liability Umbrella
X
X
X
X
X
22,795
X
(A)
Boller
1,214
1,353
2,658
2,658
2,658
3,039
2.700
Data Processing Equipment
1,123
1.210
910
948
1.156
1,387
1,400
Police Professional Liability
12,194
11,848
8,750
9,422
10,000
15,246
11,500
TOTAL 211,919_219
312
167.121
181,438
242,948
743,952
305,700
Insurance was competitively bid
X Included with General
Umbrella coverage
(A) $ 5,000,ODO coverage
(8) $10.000,000 coverage
THIRTY-ONE YEAR STUDY
ALL STOCK PROPERTY/CASUALTY COMPANIES IN USA
UNDERWRITING PROFIT/LOSS
PROFIT LOSS
I
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City of Iowa City
MEMORANDUM
Date: June 28, 1985
To: City Council
From: City HanageZr
Re: Administrative Procedures Ordinance
The proposed administrative procedures ordinance will:
(1) Assure an appropriate balance of power between citizens and the City
departments.
(2) Provide a vehicle for a citizen to receive a definitive answer
(declaratory ruling) to a question.
(3) Provide the City Council with administrative oversight.
(4) Increase the public accountability of city administrative agencies.
(5) Simplify government by assuring a minimum procedure to which all
departments will be held accountable.
(6) Increase public access to government information.
(7) Increase public participation in the formulation of administrative
policies.
In summary, the ordinance will assist in assuring that the democratic
process is indeed responsive to citizens.
Problems arise as citizens work their way through the various City
ordinances and regulations. Particularly when interpretations and
administrative procedures are involved, citizens may receive conflicting
information. On occasion
citizens
info mation. The most f ustratingproblem ak
of actionbased
vin agenrelatedoto
the marquee of the former Iowa Theater.
The City has attempted to deal with these issues by establishing various
processes which minimize the potential for the occurrence of such prob-
lems. The Zoning Interpretation Panel provides a mechanism for citizens
to receive reliable interpretative answers to zoning questions in a short
period of time. In addition, because the decisions are written, precedent
is established for. the future. Also, administrative or enforcement
procedures are prepared at the time an ordinance is considered for
adoption. The recent abandoned auto ordinance included such procedures. -
When the garbage, trash and refuse ordinance was revised several years
regulations by filing theent m withor atheiven the City ClerkuandrArticle adopt
rules and
Administra-
tive Code, of the City Code, establishes uniform administrative procedures
for the enforcement of codes and ordinances.
I
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Considering these piece -meal procedures together with the problems which
citizens continue to face when dealing with City bureaucracy, it is
recognized that there probably is a better solution. For some period of
time I have considered that it would be beneficial for citizens if the
City would adopt an comprehensive administrative rule making process.
Therefore, using the Model State Administrative Procedure Act prepared by
the National Conference of Commissioners on Uniform State Laws and the
Administrative Procedure Act of the Code of Iowa as guides, I drafted a
model Administrative Procedures Ordinance for cities. The City Manager and
the City Attorney received considerable assistance in this endeavor from
Professor Arthur Bonfield who is widely regarded as the "father" of
administrative procedure laws in the U.S.
The proposed ordinance provides a simplified process for assuring the
system works to the benefit of citizens while not overburdening the City
staff. For example, while the administrative rule process at the Federal
and State level requires a rule before an agency can act, an innovative
provision has been provided for this ordinance; i.e., Section 2-25.4.
Under this provision an action of an agency can be questioned by a
citizen. The practice may continue for 45 days while the agency proceeds
through the rule making process. This procedure permits the City to
prepare its administrative rules over an extended period of time and will
provide sufficient opportunity, based on citizen input, to determine which j
rules are really necessary, both from the standpoint of the City and the
citizens.
'This topic will be scheduled for informal discussion. In the interim, if
you have any questions, please contact me.
cc: Department Heads
Arthur Bonfield
i
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P.S. At the time the ordinance was being drafted, there was considerable
staff discussion. The attached memorandum from Lolly Eggers
represents the most comprehensive comment.
ORDINANCE N0. 1)/
AN ORDINANCE TO AMEND THE CODE OF IOWA CITY, CHAPTER 2,
ADMINISTRATION, BY ESTABLISHING ARTICLE XII, ADMINISTRATIVE
PROCEDURES.
ARTICLE XII ADMINISTRATIVE PROCEDURES
Section 2-25.0. Purpose.
This ordinance is intended to provide a minimum procedural code for the
operation of all City agencies when they take action affecting the rights
and duties of the public. Nothing in this ordinance is meant to dis-
courage agencies from adopting procedures providing greater protections
to the public or to abrogate 1n whole or in part any statute, ordinance,
or rule prescribing procedural duties for an agency which are greater
than or in addition to those provided here. This ordinance is meant
to apply to all rule-making and declaratory rulings not specifically
excluded from this ordinance or some portion thereof by its express
terms or by the express terms of another ordinance.
The purposes of these provisions are:
(a) Provide the City Council oversight of powers and duties delegated
to administrative agencies.
/339
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Ordinance No.
Page 2
(b) Increase the public accountability of administrative agencies.
(c) Simplify government by assuring a uniform minimum procedure to which
all agencies will be held in the conduct of their most important
functions.
(d) Increase public access to governmental information; and,
(e) Increase public participation in the formulation of administrative
rules.
In accomplishing its objectives, the intention of this ordinance is to
strike a fair balance between these purposes and the need for efficient,
economical and effective government administration. The ordinance is not
meant to alter the substantive rights of any person or agency. Its impact
is limited to procedural rights with the expectation that better
substantive results will be achieved in the everyday conduct of City
government by improving the process by which those results are attained.
Section 2-25.1. Definitions.
(a) "Agency" means each board, commission, department director, or the
City Manager of Iowa City.
(b) "Rule" means each agency statement of general applicability that
implements, interprets, or prescribes law or policy, or that
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/339 '
Ordinance No.
Page 2
(b) Increase the public accountability of administrative agencies.
(c) Simplify government by assuring a uniform minimum procedure to which
all agencies will be held in the conduct of their most important
functions.
(d) Increase public access to governmental information; and,
(e) Increase public participation in the formulation of administrative
rules.
In accomplishing its objectives, the intention of this ordinance is to
strike a fair balance between these purposes and the need for efficient,
economical and effective government administration. The ordinance is not
meant to alter the substantive rights of any person or agency. Its impact
is limited to procedural rights with the expectation that better
substantive results will be achieved in the everyday conduct of City
government by improving the process by which those results are attained.
Section 2-25.1. Definitions.
(a) "Agency" means each board, commission, department director, or the
City Manager of Iowa City.
(b) "Rule" means each agency statement of general applicability that
implements, interprets, or prescribes law or policy, or that
I
/339 '
Ordinance No.
Page 3
describes the organization, procedure or practice requirements of
any agency. The term includes the amendment or repeal of an existing
rule, but does not include:
(1) A statement concerning only the internal management of an agency
and which does not substantially affect the legal rights of, or procedures
available to, the public or any segment thereof.
(2) A declaratory ruling issued pursuant to section 2-25.5, or other
interpretation of particular applicability issued by an agency with
respect to a specific set of facts and intended to apply only to that
specific party and set of facts.
(3) An intergovernmental, interagency, or intra -agency memorandum,
directive, manual or other communication which does not substantially
affect the legal rights of, or procedures available to the public or any
segment thereof.
(4) A determination, decision, or order in an agency adjudication
that is of particular applicability.
(5) An opinion of the City Attorney.
(6) Those portions of staff manuals, instructions or other state-
ments which set forth criteria or guidelines to be used by staff in
auditing, in making inspections, in settling commercial disputes or
negotiating commercial arrangements, or in the selection or handling of
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Ordinance No.
Page 4
cases, such as operational tactics or allowable tolerances or criteria for
the defense, prosecution, or settlement of cases, when the disclosure of
I
such statements would:
1 i
(i) Enable law violators to avoid detection; or,
(ii) facilitate disregard of requirements imposed by law; or,
(iii)'
give a clearly improper advantage to persons who are in an {
adverse position to the City. j
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(7) A specification of the prices to be charged for goods or
' services sold as distinguished from a license fee, application fee, or
r
- other fees.
(8) A statement concerning only the physical servicing, maintenance
i 1
or care of publicly owned or operated facilities or property.
(9) A statement relating to the use of a particular publicly owned
or operated facility or property, the substance of which is indicated to
ithe public by means of signs or signals.
Section 2-25.2. Rule Making Requirements.
t
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(a) Each agency shall adopt reasonable rules to elaborate, explain and
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implement its powers and duties, including rules that elaborate,
explain and implement any legal responsibilities delegated to the
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agency by ordinance, resolution, administrative directive, statute 1
or other law.
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Ordinance No.
(s Page 5
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1 This section is intended to require agencies, as far as practicable and
feasible, to adopt rules which fully elaborate, explain and implement
substantive agency policy and provide adequate procedures by which
members of the public may protect their rights.
Section 2-25.3. Process for Adopting, Amending, and Revoking Rules.
Each agency shall follow the procedures followed in this section when it
adopts a rule. Except to the extent Section 2-25.4 provides otherwise, a
rule that is not adopted in substantial compliance with the procedures
provided in this section is void.
(a) Distribution of Proposed Rule
(1) A proposed rule shall be posted by the agency in the same
location where notices of public meetings are posted. Copies
shall also be provided to the news media who usually receive the
notices of public meetings, and to each department head and each
Chairperson of a City Board or Commission. The notice shall
include:
(i) A short explanation of the purpose of the rule;
(ii) The specific legal authority authorizing the rule;
(iii) The text of the proposed rule; and
(iv) Where, when and how persons may present their views on the
proposed rule.
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Ordinance No.
Page 6
(b) Public Participation
(1) For at least ten (10) calendar days after posting of the
notice of the proposed rule adoption, the agency shall
afford an opportunity for the public to provide, in person
or in writing, comments on the proposed rule.
(2) The agency shall consider all comments received.
(c) City Council Consideration
(1) After the requirements of subsection b have been satisfied,
written copy of the proposed rule shall be filed by the
agency with the City Clerk. The City Clerk shall place
the proposed rule an the agenda of the next regularly
scheduled meeting of the City Council.
(2) The City Council may take the following action:
(i) Instruct the agency not to proceed with implementation
of the proposed rule; or
(ii) Suggest that the agency make certain specific modifi-
cations in the proposed rule; or
(iii) Refer the proposed rule to the agency for adoption,
without modification.
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Ordinance No.
Page 7
(d) Adoption of Proposed Rule
(1) After compliance with subsections a, b, and c, an agency may
adopt the proposed rule by formal action. The rule adopted
shall be in writing, dated, and signed by the agency.
(Z) An agency may not adopt a rule that is substantially different
from the proposed rule distributed according to the
requirements of subsection (a) without commencing and
completing a new rulemaking proceeding for that purpose.
(3) In determining whether an adopted rule is substantially
different from the proposed rule distributed according to the
requirements of subsection (a), the following factors shall be
considered:
(i) The extent to which all persons affected by the adopted
rule should have understood that the distributed proposed
rule would affect their interests;
(ii) the extent to which the subject matter of the adopted rule
or the issues determined by that rule are different from
the subject matter or issues involved in the distributed
Proposed rule; and
(iii) the extent to which the effects of the adopted rule differ
from the effects of the distributed proposed rule had it
been adopted instead.
(4) An agency may terminate, at any time, a rulemaking procedure and
begin a new rulemaking proceeding for the purpose of adopting a
substantially different rule.
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Ordinance No.
Page 8
(e) Effective Date
An adopted rule shall become effective five (5) days after a copy of
the adopted rule is filed by the agency in the office of the City
Clerk.
Section 2-25.4. Petition for Rulemaking Where Agency Rules Have Not Been
Properly Adopted.
Any person may file a dated written petition with an agency requesting
that the agency reconsider a specified policy, interpretation, practice,
procedure, directive, or any other action of the agency, on the ground
that the particular agency policy, interpretation, practice, procedure,
directive or other action is a rule that has not been properly adopted in
accordance with the provisions of Section 2-25.3. A copy of that petition
shall also be filed in the office of the City Clerk. For a period of 45
days following the filing of such a petition the specified agency policy,
interpretation, practice, procedure, directive or other action in
question shall be enforceable as if it had been properly adopted as a
rule. Thereafter it shall not be enforceable against any person or relied
on by the agency for any purpose unless it was properly adopted as a rule
in accordance with the procedures of Section 2-25.3.
Section 2-25.5. Declaratory Ruling. I '
(a) Any person may file a written request with an agency requesting a
declaratory ruling determining the applicability of any statutory
X339
Ordinance No.
Page 9
provision, ordinance, rule or other written statement of law or
policy, decision or order, to a particular set of circumstances. The
petition shall be mailed by certified mail return receipt requested
or delivered in person.
(b) Written data or arguments may be submitted along with the petition.
Any person filing such a petition shall also be offered an
opportunity to present oral comment to the agency on that petition.
(c) A petition for a declaratory ruling shall contain -the following:
(1) Petitioner's name and address.
(2) The question or questions upon which the petitioner requests a
declaratory ruling, clearly stated.
(3) The particular statute, rule, written statement of law or
Policy, decision or order and the specific part thereof, to
which the request pertains.
(4) The facts which give rise to the request for a declaratory
ruling, stated fully, clearly, and precisely.
(5) The specific nature of petitioner's interest in obtaining the
declaratory ruling.
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Ordinance No.
Page 10
(6) The signature of the petitioner or a duly authorized agent of
the petitioner.
The agency shall issue the requested delcaratory ruling after
the filing of a petition that complies with all the requirements
of subsections (a) and (c), unless one or more of the following
circumstances exist:
(1) The agency has no authority to issue a binding ruling on
the particular subject matter to which the petition
pertains.
(2) The petitioner's interest in the ruling is insufficient to
justify its issuance.
(3) Under the particular circumstances issuance of the
declaratory ruling at the time would be contrary to the
public interest or infeasible or impractical.
i
(4) The declaratory ruling could substantially prejudice the
rights of a person who would be a necessary party and who
does not consent in writing to the determination of the
matter by a declaratory ruling.
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(d) Each agency shall respond to a petition for a declaratory ruling by
providing a written response to the petitioner in person or by mail
I
within 30 days following the date on which the petition was received
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Ordinance No.
Page 11
by the agency. The response shall contain a statement of reasons for
the action taken and if the response is a declaratory ruling, that
ruling shall contain the name of the petitioner to whom it is
directed, and the facts and law upon which it is based.
(e) A declaratory ruling is binding on the issuing agency only with
respect to the specific facts and law contained therein, and only
with respect to the petition.
(f) Declaratory rulings shall immediately be filed in the office of the
City Clerk, and shall become effective five (5) days after that
filing.
Section 2-25.7. Appeal Process.
Any person aggrieved by any rule or declaratory ruling may appeal in
accordance with Section 2-184 of this Code.
Section 2-25.8. Public Access to Rulings and Rules.
(a) The City Clerk shall maintain a file of all agency rules and declara-
tory rulings. In addition, each agency shall maintain a file of all
rules and declaratory rulings issued by that agency. All files shall
be available during regular business hours for public inspection.
(b) All rules and declaratory rulings, and all other written policies,
interpretations, p procedures and directives, orders or decisions of
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Ordinance No,
Page 12
an agency, shall be indexed by subject and shall be available for
public inspection and copying.
Section 2-25.9. Severability.
If any portion of this ordinance shall be declared invalid, unenforceable
or unconstitutional, such invalidity, unenforceability or unconstitution-
ability shall not affect any other portion of this ordinance.
Section 2-25.10. Repealer.
All ordinances or parts of ordinances in conflict with this ordinance
hereby are repealed, including Sections 15-5 and 23-16(b) of this Code.
Section 2-25.11. Effective Date.
This Ordinance shall be in effect after its final passage, approval and
publication as required by law.
Passed and approved this
MAYOR
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MEMORANDUM
Iowa City Public Library
Date: November 5, 1982
To: Neal Berlin, City Manager
From: Lolly Eggers, Library Director • �'
i
Re: Proposed Administrative Rule-making Ordinance
I strongly support the goals of the proposed ordinance: consistent and
fair enforcement; reduction of arbitrariness; promotion of the public's
right to know and to be advised cogently on how to proceed; documemation
and codification of existing rules.
I strongly sYmpathesize with the frustration and desire of any manager to
know (or to be able to systematically find out) what are the operating
rules and procedures of each division. It is tough having—the public tell
you about inconsistencies.
I think you are vastly underestimating the time it will take to implement
and maintain this process. I agree that some of the new effort will be
Offset by time not spent handling one-on-one complaints, questions and
appeals - but not the same people will be involved. The time you or other
officials and managers save will not be used to do the work of designing,
establishing, maintaining and distributing an up-to-date and accessible
system. Initially, it will be a heavy load for managers. The act of
"publishing any set of rules and procedures creates the need to review,
update, check with other agencies or departments who interface, deal with
changes occurring since the last update, and, most important, to have
employees review written procedures to see if indeed that is what -they are
doing.
The Library now publishes rules and policies for several of our service
areas - circulation, selection of materials, meeting rooms, AV services -
and we plan to do more. It is our attempt to keep the public better
informed on services available, the policies which govern them, and to
reduce staff time spent explaining rules and policies. I think the effect
has been mostly positive. Somehow the public is always mollified when you
can prove it is a rule - not an off-the-cuff decision of an employee. We
are spending less time "explaining." On the other hand, the existence of
the printed copy has another effect. Increased knowledge of a service or '
rule increases use of the procedure. We have no argument with increased
awareness and use; we do have trouble staffing this increased use.
Because of the existence of professional watchdogs as mentioned by Bette
Meisel and others, and my own experience of responding to an articulate
complainer with an elaborate new general rule and then finding a year
1339
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later that nobody else used it or wanted it, I recommend some kind of
language in the ordinance which requires identification of the need for a
rule or a rule change. A longer waiting period? More than one request? A
petition signed by x number of people? This would minimize the problem of
proceeding through an elaborate and costly process for what may be a
unique complaint or request. It is one thing to produce a "difficult" or
technically sub -standard rule which politically makes a lot of people �.
happy. It's unfortunate if the same less -then -perfect procedure not only
is difficult for staff but is also not in the public interest.
This whole discussion is a very healthy one. It raises each manager's
consciousness about the power he/she does have over the public and the
need to avoid arbitrariness and inconsistent application of law and I
policy. Bonfield did a good job of presenting the advantages and disad-
vantages from the perspective of both the City official and the public.
I have grave reservations about its application to the Library in its
present form, but feel a modified version could be used at one level by
the Library Board to monitor rules made to carry out their policies and at '
the City Council level for Board policies if the areas of Council
Jurisdiction over the Library Board can be clearly defined.
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later that nobody else used it or wanted it, I recommend some kind of
language in the ordinance which requires identification of the need for a
rule or a rule change. A longer waiting period? More than one request? A
petition signed by x number of people? This would minimize the problem of
proceeding through an elaborate and costly process for what may be a
unique complaint or request. It is one thing to produce a "difficult" or
technically sub -standard rule which politically makes a lot of people �.
happy. It's unfortunate if the same less -then -perfect procedure not only
is difficult for staff but is also not in the public interest.
This whole discussion is a very healthy one. It raises each manager's
consciousness about the power he/she does have over the public and the
need to avoid arbitrariness and inconsistent application of law and I
policy. Bonfield did a good job of presenting the advantages and disad-
vantages from the perspective of both the City official and the public.
I have grave reservations about its application to the Library in its
present form, but feel a modified version could be used at one level by
the Library Board to monitor rules made to carry out their policies and at '
the City Council level for Board policies if the areas of Council
Jurisdiction over the Library Board can be clearly defined.
bdw/sp
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City of low& city
=MEMORANDUM =
Date: June 28, 1985
To: City Council
From: City Manage
Re: Treatment Plant/Sewer Study
The purpose of this memorandum is to give you a progress report on the
Metcalf & Eddy study.
Mr. Charles Pound, Vice President, Metcalf & Eddy, in the Arlington Heights
Office who is responsible for the project, was recently reassigned to
Alexandria, Egypt. He will be replaced shortly with a new vice president.
However, the work will progress without interruption because Mr. Larry
Jaworski, the project manager, will continue to supervise the work.
Metcalf & Eddy is continuing the review of the three engineering alterna-
The tives. The Fluor Corporation has completed a construction cost estimate.
Fluor
Metcalf & Eddy concursnwithtthecFluoreestimates. Becauseost rlationships of thettherehreeaiseonlyialtrnatve7%
difference between alternatives 8 and 11, they represent virtually the same
economic value.
Description
Original Fluor
Estimate Estimate
1. Alternative l2
(Existing Plant 72%)
(Sand Rd. Plant 28%)
(SE Interceptor Sewer)
$49,746,000 $49,272,000
2. Alternative /8
(Existing Plant 100%
with various pumping
stations.)
35,029,000 31,696,000
3. Alternative ill
Existing Plant 72%)
Sand Rd. Plant 28%)
(Sycamore Interceptor)
40,379,000 33,912,000
For
eporiptioneof alternativ see
attached
see Metcalf
R
&ost Eddy,uApril 5, 1985, PhaseIIReport.
This past week, City staff met
Arthur Young & Company to develop
with representatives of Metcalf & Eddy and
parameters for preparation of the financial
alternatives. When Metcalf & Eddy submits its final
recommendation on the
three engineering alternatives, Arthur Young also
will present a number of
/5'i;14 1 11
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financing alternatives., These will range from the most conventional munici-
pal financing, such as the issuance of fixed rate general obligation and
revenue bonds, to various kinds of privatization. One of the alternatives is
a financing method similar to that which is being considered for the con-
struction of a new City office building. In all instances Arthur Young &
Company will also indicate what impact the proposed income tax law changes
might have on these financing methods.
At the end of July or early in August the final Metcalf & Eddy/Fluor/Arthur
Young recommendations will be received. At that time the City staff and the
Wastewater Treatment Plant Review Committee will meet with representatives of
Arthur Young & Company and Metcalf d Eddy to review the recommendations.
Because of the nature of the engineering recommendations and the number of
financing alternatives, the members of the City Council are encouraged to
attend that session. Based on that session, the Review Committee will make a
recommendation to the Council. Shortly thereafter the Council will be
requested to proceed with a specific engineering alternative and a method for
undertaking construction. The Committee will consider whether an engineering
firm should be engaged to prepare plans and specifications or whether a
design build or construction management process should be utilized.
As soon as we have some idea of the dates of the meeting, we will be contact-
ing you. In the interim, if you have any questions, please let me know.
cc: Advisory Committee
Chuck Schmadeke
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4EeMpr M
Rim No
4 ALt9wR is .
OINtz R,nA
Acawa7s Ill
61At/A0 flint yh6lllbtlat
$2,=)).000
lit g OINK
fJlA
� d�N2
WSW* f1ar4 tprlat
$2,211,040
::.=)).000
i=.2)),aoo
i:.=)).000
$2.231.000
IlioallntlOA
8turw4[ tfcutaant Hyatt
S.4s4,o40
e.ie2.o40
7,290.000
10.92),000
S.4S1,000
4,M2,000
/A,4 BOM stANAwt )lent
7,161.000
7rSM,000
-
LIR statim ad 11x40, IWn
0
8
7.162.000
7.5)1,000
some
0
0
2.996.000
1.264,000
1.170.000
1.0!1.000
9,4 lot"10,S21r000
i1.OS1.00p
1!.617,040
11,467,040
10,067,000
11.321,000
cmnn= (1511
ArM2.000
11r2Kr040
24.112,000
26.945,000
26.086.000
31.061.000
A4alAlAtfatlN),!11.000
119+1. Dgtn.r4n4 t1311
s.uS.000
5,740,000
3.657.000
4.042.000
4,4Sf,000
tal
faO A•tnCtlm CM
s,as,000
tlr
5,740,eeo
3,657.000
4.at,om
2.91),000
4.4!.000
,
$49, 4G, 000
-1.0 8)!'406,008
$15,029,000 -9.S
81).917,000
$10,17!.000 -16.0
tixar
al AIL 00119 Nit M u 00421126 MWMW 10 I"0.
I
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City of Iowa City
= MEMORAiVDUM
Date: June 28, 1985
To: City Council �
From: City Manager/ /fv -_� ' �
Re: Parking System - Reserves
At the City Council meeting of June 18, 1985, we discussed the parking system !
and the reserve accounts. Reserve accounts are established to ensure that
adequate funds are available to guarantee the payment of principal and
interest on the bonds; operation, maintenance and improvement of the system; j
and to obtain a favorable interest rate. In addition to the specific reserve
requirements, the bond covenants require that revenues be at least equivalent '
to 1505 of all system expense and reserve needs. Lastly, on top of the
reserve and total revenue requirements, the City has attempted to establish
revenues at a level which will provide some cash for new construction so that
the amount of borrowing could be reduced.
For example, there is currently $558,543 available in operations. This sum
will be used to pay for part of the cost of the new parking ramp or if it is i
desirable to refund the parking revenue bonds it could be used to reduce the
amount of the refunding issue. Because of falling interest rates, it may be
desirable to refund the existing bonds.
The only parking revenue normally that can be diverted for other uses is the
parking ticket fine money which must first be put into parking operations and
then can be transferred to the general fund if the bond reserves are ade-
quate.
After all of the foregoing needs are met, the City could establish additional
fees for the parking system which would not be encumbered by legal
prohibitions of the bond covenants. Under those circumstances, those fees
could be diverted to other uses. While such diversion would not be a
contravention of the bond covenants, it could prove detrimental to the City's
ability to finance future capital improvement projects for the parking
systems or other enterprise funds.
It is probable that the financing of additional parking in the future will
necessitate an increase in parking rates. Therefore, the City's ability to
increase rates in the future must be maintained. Also, there are a multitude
of operational, political, and economic issues which would arise from
establishing non -economic parking fees to support other City services, such
as transit. i
bdw/sp
cc: Phil Nychay
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City of Iowa City
MEMORANDUM
Date: June 26, 1985
To: City Council
From: City Manager/ !/
Re: Southwest Tripper and Bulk Rate Passes
During 1984, the City Council directed the Transit Division to begin peak
hour tripper service in the Aber Avenue/Ealing Drive area in southwest Iowa
City. Unless the Council dictates otherwise, the southwest tripper will
discontinue service on July 15. The other trippers already have ceased
service for the summer. Fares paid by users have covered approximately 15%
of the cost of the service compared to 60% for the entire system. The
average number of riders per trip has been nine during the school year and
that has reduced to four or five since the end of school. The staff will
review this route in conjunction with other peak hour service and additional
information will be forwarded to the City Council before the beginning of the
school year to determine whether or not the service should be reinstituted.
Sometime ago the City Council requested that the staff develop a bulk fare
pass program. The staff now has developed a program. However, we do not
recommend institution of the bulk rate pass program. We believe that the
City should consider bulk rate passes in conjunction with the overall study
of the transit service. Therefore, we would recommend that no action be
taken at this time.
The staff believes that most. persons interested in purchasing passes cur-
rently purchase them at the present favorable rate. If this premise is
correct, the bulk pass rate would not be financially beneficial for the
system.' More concrete information should be developed in the study.
cc: Larry McGonagle
John Lundell
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City of Iowa City
MEMORANDUM
Date: June 19, 1985
To: City Council
From: City Manageri� ,
Re: Utility Franchise
Enclosed is a copy of my memorandum of April 12, 1985, to you, which includes
Mr. Nychay's written comments and questions. The following comments are
provided in response to Mr. Nychay.
Item 3. Right to Erect Poles. Item C.
It is recommended that the trimming trees provision be deleted from the
franchise and be included in the regulatory ordinance because if such matters
are included in the regulatory ordinance, the City can make such changes and
amendments as may be required during the term of the franchise.
Item 4. Relocation of Installations. Item B.
Such reimbursement would reduce the cost to the utility company.
Item 6. Street Excavations..
Chapter 31, Article II, City Code.
bdw/sp
cc: Phil Nychay
ME
April 12, 1985
Enclosure II
COMPARISON AND RECOMMENDATIONS
1. Grant
A. Existing - Sec. 14-1
Term - 25 years, 15 year reopener by City only.
B. Proposed - See. 1
Term - 25 years, reopener at beginning of eleventh and twenty-first
years by gith..- City or Comnany.
C. City Manager's Recommendation.
None.
2. Subject to State Law; Not Exclusive
A. Existing - Sec. 14-2
Franchise subject to State law and is not exclusive.
B. Proposed - Sec. 2
Franchise subject to State law; 'any other applicable statute or
regulation promulgated by administrative agencies under federal or
state law'; A!Lq. Iowa City codes and ordinances, all as amended.
Franchise is notexc
C. City Manager's Recoaeiendatlan.
Z? y.a
Use language of proposed franchise.
3. Right to Erect Poles, Etc.
A. Existing - Sec. 14-3
Provides that installations shall create 'no unnecessary obstruction'
and must comply with 'National Electrical Safety Code.' Also,
requires that wires shall be kept at such an elevation 'as to avoid
danger to persons and adjacent property.' Includes provisions for
trimming trees.
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S. Maps of Underground Installations
A. Existing - Sec. 14-5
Company to provide maps and update information.
B. Proposed - No provision.
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B.
Proposed - Sec. 3
jDeletes
'no unnecessary obstruction provision.' Requires compliance
with National Electrical Safety Code and adds regulations of Iowa
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State Commerce Commission. Deletes provisions for elevation of wires
and danger to persons and property. Provisions for trimming trees
retained.
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C.
City Manager's Recommendation.
Include obstruction and elevation language of existing franchise.
Trimming trees provision should be deleted from franchise and
provision of regulatory ordi ante, 'Cutting and Trinpring,' page 4,
should be used.
4. Relocation
of Installations
A.
Existing - Sec. 14-4
Requires relocation at Company expense; when reasonabl rn wired; for
following purposes: construction, reconstruction, ma enance or
repair 'of any public improvement of, in or about any such street or
promoting the efficient operation of any such improvement.'
B.
Proposed - Sec. 12
Requires relocation at company expense; as may be required by City;
l
provides for relocation only in the following circumstances:
'alteration or change of the grade or location of any street...'
Eliminates reference to 'construction, reconstruction, maintenance or
repair of any public improvement.'
Requires City to 'seek reimbursement' to company if relocation funds
ere available from other source. Example: Block Grant project could
fund utility relocation; City would be required to use Block Grant
funds for this purpose. Also provides new provisions that 'Company
shall not be required to relocate any electric facilities more than
once for each City project.'
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C.
City Manager's Recommendation.
Include language of existing franchise, with exception of the word
'reasonably.'
S. Maps of Underground Installations
A. Existing - Sec. 14-5
Company to provide maps and update information.
B. Proposed - No provision.
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C. City Manager's Recommendation.
Include language, 'Maps and Projections,' P. 5, in regulatory
ordinance. Eliminate from franchise.bs
6. Street Excavations
A. Existing - Sec. 14-6
Company shall 'not unnecessarily obstruct the use of the streets' and
make repairs.
Company subject to same regulations which apply to all other per-
sons.
B. Proposed - Sec. 4
Obstruction and replacement requirements same as existing franchise,
provision relating to applicability of same regulations deleted.
C. City Manager's Recommendation.
Delete excavation requirements from franchise. In the regulatory
ordinance delete wording of section on excavations, P. 5, and
substitute language stating that company shall be governed by all
City ordinances and adeinl trative rules whieh apply to excavations
on public properties.
7. Obligation to Extend Service
A. Existing - Sec. 14-7
Etablishes requirement of at least one customer per 200 feet of
street and customer agrees to pay for service.
0. Proposed - Sec. 6
Extensions in accordance with rules and regulations of I.C.C. lU�au
C. City Manager's Recommendation.
Language of proposed franchise is acceptable.
8. Hold City Harmless
A. Existing - Sec. 14-8
Same as proposed.
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B. Proposed - Sec. 5
Same as existing.
C. City Manager's Recommendation.
Language is acceptable. 04-
9. Obligation to Furnish Energy
A. Existing - Sec. 14-9
Same as proposed.
B. Proposed - Sec. 7
Same as existing.
C. City Manager's Reconaendation.
Language is acceptable. OK
10. Rates
A. Existing - Sec. 14-10
Provided for rate setting by City and supervision of meter use.
B. Proposed - No provisions.
Responsibilities of existing ordinance superseded by ICC.
C. City Manager's Recommendation.
No language necessary. City power has been superseded by ICC.?.�
11. Accounting
A. Existing - Sec. 14-11
Requires company to maintain accounting records in accordance with
Federal Power Commission standards; file detailed annual report;
other information 'as may be pertinent to the City Council in
determining the reasonableness of the rates being charged'; copy of
Federal Power Commission report.
B. Proposed - No provisions
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C. City Manager's Recommendation.
In regulatory ordinance use language, "Reporting Requirements,' p. 6.
12. Right to Inspect Books, Etc.
A. Existing - Sec. 14-12
City has a right to inspect books and all records of company.
PB. Proposed - No provisions �
C. City Manager's Recommendation. 1� p
Include language of existing franchise.
i.
13. Company to Pay for City's Examination of Books, Records, Properties -i
A. Existing - Sec. 14-13
I
Costs of examining books, appraisals of company property, engineering ! i'
or legal services shall be paid by company, with not to exceed
figure.
B. Proposed - No provision i
C. City Manager's Recoanendation.
Include language of existing franchise.
14. Company Right to Establish Rules and Regulaticwith City Right to
Approve/Disapprove /� p 1g•
A. Existing - Sec. 14.14
Company authorized to establish reasonable terms, conditions, rules,
regulationsand deposits; all subject to approval/disapproval by City
Council; filing by the Company with the City Clerk required. '
B. Proposed - See. 8 {
n,, c Company authorization continued; City approval provision and filing
C� with City Clerk deleted.
C. City Manager's Recommendation. {
Include language of existing franchise.
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e4- 15. City Right to Use Company Poles, Etc.
A. Existing - Sec. 14-15
City has right to use company property, without charge, for police
alarm system, fire alarm system and traffic control system; City
holds company harmless for such use.
B. Proposed - No provision.
C. City Manager's Recommaendation.
Expand language of existing franchise to include free use of company
property for any City alarm, control, or communication function;
voice, data or any other medium.
16. Adoption of Police Regulations
A. Existing - No provision.
B. Proposed - See. 9
City will adopt and enforce necessary police regulations to protect
poles. wires. etc.
C. City Manager's Recommendation.
If Company believes regulations are necessary, consider adoption of
ordinance which will fulfill those needs, based on specific company
request. No need to include in franchise.
V)�- 17. Franchise Binds City and Company, Successors and Assigns
A. Existing - No provisions.
B. Proposed - Sec. 10
Binding upon successors and assigns; company assignment subject to
City Council approval, not to be unreasonably withheld.
C. City Manager's Recommendation.
Proposed language is acceptable.
18. Condemnation of Private Property
A. Existing - No provisions.
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B. Proposed - Sec. 11
Company "shall have power to condemn private property for the purpose
of providing electric service to the public'; upon approval of City
Council and after reasonable attempts to purchase. Company must
establish necessity,
C. City Manager's Recommendation.
Although I am not aware of any circumstance when such action has been
necessary, the provision in the proposed franchise does not seem
OP unreasonable, particularly because power is contingent on approval by
City Council. However, before making a final decision, the Company
should provide justification for inclusion of provision.
19. Implementing Provisions of Ordinance
A. Existing - Not applicable.
B. Proposed - Secs. 13, 14, 15, 16, 17
The foregoing provisions relate to the process for approval.
20. Other Provisions of Regulatory Ordinance.
A. Iowa City Electricity Review Commission and Utility Specialist (pp.
1, 2, d 3)
City Manager's Recommendation.
None. Council's decision will be predicated on policy issues
relating to franchise fee.
8. Underground District Regulations. (pp. 8, 9, 10 b 11)
City Manager's Recowiendatlon.
Include underground district regulations in regulatory ordinance.
Certain provisions relating to excavations are duplicative of
previous provisions (see item 6 above) and should be deleted.
C. Review of Company Conservation Program. (p. 11)
City Manager's Recommendation.
There should be some mechanism for the Company to publicly report
locally concerning its energy conservation efforts. This procedure
generally seems acceptable.
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D. Distribution and Transmission Lines.
Requirements. (pp, 11-14)
City Manager's Recommendation.
Safety regulations are included in 3 above and therefore are not
required in this section,
I do not believe that it is necessary or desirable to regulate
distributoL+ ";�✓�� ion lineas tilated rthe proposed
irwotoeordinanceHowever, regulation o transmission lines would b
appropriate through the regulatory ordinance and the zoning ordi-
nance. Therefore, section (b); certain
of
(relating to reduction in value of property without stampesection
etion,(c)
lines cannot be practically located elsewhere and compliance with
v if
height limits of zoning ordinance); and section (d) should be
retained,
The zoning ordinance requires a special exception for utility
facilities on private property. The regulatory ordinance is drafted
to regulate the erection of transmission lines on public property.
Under section (d) of this provision the Company is required to submit
certain information. However, there is no explicit approval process.
Itis recommended that a provision be added which provides that the
City Council may approve the construction of transmission lines on
public property, when the City Council determines that such construc-
tion is in the public interest, based on the information provided by
the
withhelpany, and that such permission shall not be unreasonably
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AECEIVEDAN 27GGS
Food, Beverages, Volleyball,
Softball, lids' Activities
Feel Free To Bring:
Lava Chairs, A Covered Dish
Table Service, Musical
Instruments, Baseball Gloves
$1 DONATION
RSVP: David Leshtz
YOU ARE INVITED TO
Peg MnElroy
AN
n
Mary Wyckoff
OLD-FASHIONED
MV
SPONSORED BY•THE
NEIGHBORHOOD PARTY
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Sunday, June 30, 1985
4:00 - 8:00 P.M.
7
623 - 629 Oakland Avenue
W
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Food, Beverages, Volleyball,
Softball, lids' Activities
Feel Free To Bring:
Lava Chairs, A Covered Dish
Table Service, Musical
Instruments, Baseball Gloves
$1 DONATION
RSVP: David Leshtz
351-2973
Peg MnElroy
338-9177
n
Mary Wyckoff
338-6417
MV
SPONSORED BY•THE
DEMOCRATS OF PRECINCT 18
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EPA orders
halt to Iowa
sewage plant
S4.3 million Red Oak idea
too costly, eni ft"r says
ByTOM Iry eYWn=ILY
Federal tarlroomeaW officials
Lro asdaw' a has tes "J mmlM
sewage treatment plat project to
RM Oak, after a Fairfield Mglaef
complained ex; . tthat tW* W
Was; few
timimieeoeoy.
Martina heifer/, associate w
Ong nerd far W us AeYew
musical Praised= Atuct s RedM 7
AHM comeMs that the traject
rdd seed. es mach r g$.I miW es L
alas" M wants man Wer $U R&
Hes is ejlaA" and
nab•
�tlmp MM IY'sbp aft *an
au0d to IoM Oki dF officials Fit -
4y. no city qMw was to Beard
eaMtacis M tM asN at • ander:
and Wade Managemeat M
rejected ton claim that W
was too expeodve. Further. I
The conflict is the lated develop-
most
evelopmost In a simmering controversy
between Alla MW date alfbva s
W officials over design regulations
ga ulag average trMtmeat plum
being bat across the dm u me
state
,.brei =a water standards. Allen
ewbus dam standard, an "Mind.
to M Interview. Allen said the pro}
ant In RM flak it nos of Several that it
ton large and man ex"W" Nora
wissakay. He addid that be has an A.
saneW Interna in the Red Oak project
becss be didn't attempt to gala con
tract an it and doss not aped to be
Involved with It In the future
"I jug think that they should ,crap
whet they ban and start am agate, It
will asro a mlrf+"11"1 amount of In.
cal, auto and federal money, In the
M61toIAQ-
tone of about N million to consawe•
Una cats and about $170,000 a year in
operation and mabotenenee," Allen
taw.
He says the Red Oakproject, which
would use a mechanical method, of
treating sewage, could be replaced by
a mach len expensive "aerated" Is.
goonM&M Wes, mechenkaI a *
lam, average Is geamd Idde s bulld-
lag and sludge reaalm.
In a lagoon system, outdoor basin
capture the Sewage, watch tion Is ex.
Owed f�se of usprlo-
Ba PW Armkneeht, Red Oak citadd that the city's projecty
bar bfn�planned for about 1 years
nae tial w altematlef, lncbadlog of
similar to that proposed by Allen,
were coeddered. He said the system
appaed-by city and state officials is
the meat cod4UwU a and tidal for
the Yatpmeey Cossey city of abase
7,1180.
it Yarn N Planing
'Rene Important thing to remember
IsthatUtehubeesbthawol fold
yeas W W bre reviewed at all
stege. It has bass canLHy consid.
sed by Neeity ad stateandalladw
alternatives hen ben mitwtd,"
ArmkmcknA
He added tont city officials duMdM
that the approar. urged by Allen was
we exptaslwn W would not meow all
The puyect IS b be nsuosd 79 poo -
a
lines to rartsb pacts of the city. Ona
euadlao at the treatment plant IS Its
third and deal phase.
On Stokes, deputy director for
WAWM, Said that W agency was lo-
fwmM ad the alp order h1day but
MISS W M M M that the propoaM
pot was the but choice. Stokes said
that further delays, while possibly
allowing on of new technologic&
would not necessarily result in a man
aea+bhetles plans.
"We gut Involved with Red Oak 10
rears ago. and now the project is.
Tandy is Par Over a period of
U24. then will always be Improve•
ft oseW tis a b�ino� at new Idea that
uW Stokes arid.
"Wresg Thea, Wnag Now.
But On contended that as gaWa
construction standards were "wrong
when they were written and an wrong
Dow.".
Allen said that state officials are M
fasug b acknowledge a number of
changes In Sewage trsstmeat taehm ;.
K • o
�iQ_ l7, /985'
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no procedure to evaluate projects on
the basis W "current standudL-
"As a result, many communities.
each as Red Oak, are saddled with
much higher sewer utility few than
necessary," Allen said. He said be
Imtrods to present his objection to the
standards and the Red Oak project at
ofwthe WAWM Commission
be Tuesday.
In April, Alla formally protested
As Red Oak pfae to dam officiak Is
his protest letter. AHss said that "tib
poo wastedmefyougat not tees
fief. The savlup in greet alloeatlea
that should be restiud from fief
projects could be mud to finance
many mon treatment systems, thou
helping to selro environmental es
cams while redacting the financial
wearmem regalrtmants err a
standards hart been encted
would affect this propos."
protests to washbillor
offid" who Lwow the atop order In
wow the mise to make no ad &
taaatimWboles- is andthet
the project met IZPA test effectivw
am standards.. StaiDcamp said that
the atop order was based from Wuh-
logo@ owes atter reglaaal officials
W base assured by auto officials
that eon Red Out project maw ms
dards.
Stderamp ase that the sop order
would be is effect for a madm® of
I$ days and cold be worded at any
elms. It Wn could be 4MWW for an
additional /S days.
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a Fd. Jaw A 1485
Red Oak gets EPA Otto launch
treatment plant constriction>
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Council (Chamber )
The University of Iowa
Iowa City, Iowa 52242
is
`r
S Student Senate
July 15, 1985
Hon. John McDonald
Mayor
City of Iowa City
Civic Center
410 E. Washington St.
Iowa City, IA 52240
Dear Mayor McDonald:
On behalf of the 1984-85 UI Student Senate, I would like to thank the City Manager's
office and the City Council for their careful consideration of the UI Student
Senate's City Lighting Project.
We feel that these additional lights will be a good first step towards reducing
assaults against the citizens of Iowa City. The Senate wishes that all of the
citizen recommendations for additional street lights would be a reality, but we
understand the need for a comprehensive and coordinated street lighting system.
Although these additional lights are a good first step, it is only a beginning,
We feel that careful consideration should be made towards revising the Iowa City
lighting system. Because, like many plans and systems, this one has its drawbacks,
The street lighting which complies to code in many areas is still not adequate for
the safety of Iowa City's citizens. Changes must be made in order to correct these
deficiencies. We hope that this lighting project proves to be helpful in pointing
out the areas which still need serious consideration.
I press upon the City Council to install the lights which have been recommended
for placement. The additional lights will help to stop potential assaults in
those areas.
I would like to thank the following people for their assistance in making the
UI Student Senate's City Lighting Project a reality: Molly Gillogly, Project
Coordinator; the volunteers from the Senate itself and from the Iowa City Greek
Community for sitting at the Project tables; and to Jim Bractile for turning the
numerous push pins into a workable written memo.
Thank you.
Sincerely,
Mike Skinner
Chairperson, City Relations
1984-85 Student Senate
1441
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City of Iowa City
MEMORANDUM
Date: July 3, 1985
To: City Council
From: Neal Berlin, City Manager
Re: Office Space Rental
The resolution approved last week authorizing rental of office space in
the First Federal Building stated that approximately 2,400 square feet
would be leased. In verifying the actual square footage, we found that
the office area was actually 2,806 square feet. Due to the physical layout
of the area and the fact that it includes a large number of offices
instead of large open area, the total square footage will be needed to
accommodate the space needs of Public Works Administration and Engineer-
ing. Therefore, I have proceeded with the lease for the entire 2,806
square feet.
Staff will be moving into the space on July 8, 1985: Total cost of
renting this office space will be $25,254 annually.
ry/sp
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City of Iowa City
MEMORANDUM
Date: July 5, 1985
To: City Council
From: City Manage
Re: "High Rise" Apartments - RM -145
A 'high rise" apartment building is being constructed in the area of
Valley Avenue and Newton Road. The area is zoned RM -145 for high rise,
high density multiple family dwellings. High rise apartment buildings
need only be provided with one parking space for each dwelling unit
whereas other apartments require either 1.5 or 2.0 spaces per dwelling
unit.
At the time of preparation of the new Zoning Ordinance and map for Iowa
City, the Planning and Zoning Commission felt that it was desirable to
establish certain areas around the downtown and University campus area
for high rise, high density apartment development. It was felt these
areas are within walking distance of activity centers and that persons
attracted to the areas would be those who did not own cars or would keep
them in storage, absent the amount of parking necessary to park them on
premises.
Not only was there the desire to encourage high rise, high density
development in certain areas, but there is actually a "penalty" placed
on those property owners who wish to develop their property for low rise
apartment buildings. Those penalties are in the form of decreased
allowances in density and increased requirements for parking at the
ratio of one and one-half parking spaces per dwelling unit less than 800
square feet in area.
A high rise apartment building by definition in the Zoning Ordinance is
"a multi -family dwelling exceeding three (3) stories in height." Height
is measured from the grade to the roofline, and the grade is the average
level of improved surfaces measured at the corners of the exterior walls
of a building. A basement which has three and one-half feet of its
floor -to -ceiling height above grade is counted as a story for the
purpose of height regulations. A building with four stories, one of
which is partially below grade, is classified as a high rise building
under the Zoning Ordinance but not under the Uniform Building Code which
classifies a high rise apartment building as being more than 65 feet
high.
According to the Uniform Building Code, a high rise apartment building
must be constructed of fire retardant materials with elevator access.
Such construction requirements would increase the cost substantially for
high rise apartment buildings. There is, therefore, an incentive to
develop apartment buildings at a height above three stories but less
than 65 feet to take advantage of the higher density provisions for high
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rise development of the zoning Ordinance and the requirement for reduced
parking. This presents a situation of inequity for those persons who
construct apartment buildings at a height less than four stories. To
eliminate this problem, the two definitions should be made consistent.
Complaints are being received about the lack of parking, exacerbating
already severe problems in the neighborhood. In addition, what is
basically a three-story building is qualifying as a high rise because of
the nature of the basement construction. This certainly seems to be a
contravention of the intent of the ordinance. I have asked the staff to
review these problems with the Planning and Zoning Commission.
/sp
cc: PU Commission
Don Schmeiser
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City of Iowa City
MEMORANDUM
Date: July 3, 1985
To: City Council
From: City Manager /
Re: Building Expansion - Status
Before the end of July we hope to have the request for proposals prepared for
the building expansion planned for the parking area immediately to the east
of the Civic Center. John Lundell will work primarily with Dale and Rosemary
on the drafting. Shive-Hattery is scheduling to do borings early next week.
Ken Haynie, the City's bonding attorney, is preparing a contract. Also, I
have continued to work with Roy Neumann. He will prepare specifications for
the building so that we are certain that each bidder bids on the same quality
of construction. The actual detailed plans and architectural design will be
prepared by the individual bidders. A preliminary letter will be sent to
prospective bidders in the near future.
bj3/3
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City of Iowa City
MEMORANDUM
DATE: July 5, 1985
M City Council
FROM: City Manager -' �- -
RE: Notice of Opportunity (Attached)
The attached announcement is being sent to several hundred developers,
builders, architects, financing companies and other related businesses
to determine the level of interest in the project.
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City of Iowa City
MEMORANDUM
DATE: July 5, 1985
M City Council
FROM: City Manager -' �- -
RE: Notice of Opportunity (Attached)
The attached announcement is being sent to several hundred developers,
builders, architects, financing companies and other related businesses
to determine the level of interest in the project.
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City of Iowa City
MEMORANDUM
DATE: July 5, 1985
M City Council
FROM: City Manager -' �- -
RE: Notice of Opportunity (Attached)
The attached announcement is being sent to several hundred developers,
builders, architects, financing companies and other related businesses
to determine the level of interest in the project.
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CITY OF IOWA CITYCNICCENTER 410E.WASHNGTONST. IOWA CITY
. 1 OWA 52240 (319J 356-5CC0
July 8, 1985
AN OPPORTUNITY I
The City of Iowa City is seeking a private development team to build and
finance a new three-story office building of approximately 25,000 square
feet on City property immediately to the east of and connected to the
existing Civic Center. Air rights will be leased to a private developer
so that parking may be maintained on site. The building will be con-
structed and financed by the private developer and leased to the City for
a period of 20 years at which time ownership of the building will transfer
to the City. The City is prepared to issue IRBs to assist in the financ-
ing.
The City is preparing a request for proposals. If you are interested in
receiving a copy of the project materials, please call my office at
356-5010. It is expected that the proposal will be mailed early in
September.
Sincerely yours,
Neal G. Berlin
City Manager
/ 3S/
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City of Iowa City
MEMORANDUM
DATE: July 5, 1985
TO: City Council
FROM: City Manager _ems
RE: Swimming Pools
Some time ago the City Council discussed the status of the City's
swimming pools and the possibility of a joint project with the Iowa City
Community School District. It was agreed at that time that the staff
would obtain additional information concerning the condition of the pools.
Enclosed is an engineering analysis of both she City Park pool and the
Mercer Park pool. The Parks and Recreation Commission will discuss this
report at its meeting on Wednesday, July 10, and will provide a recom-
mendation to the City Council. An informal discussion will be scheduled
at a later date.
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HALL ENGINEERING COMPANY
CONSULTING E NGIN EEFS
IOWOWA STATE BANK BUILDING
OWA CITr. IOWA 52240
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IOWA CITY. IOWA June 21, 1985 CENTER VILLE. IOWA
3191351-9007 5I51137'K4 77
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Mr. Allen Cassady
—i Parks and Recreation Department Re: Engineering Report
J City of Iowa CIty Municipal Pool Renovation
220 South Gilbert Street City and Mercer Parks
r—,
Iowa City, Iowa 52240
Dear Mr. Cassady:
In accordance with the City's instructions we have completed a physical inspection
and preliminary engineering evaluation of the City's two existing outdoor swimming
pools. Our report and recommendations are provided in the following and include a
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separate report section for each of the facilities. Also included, as an Appendix, are our
earlier Engineer's Reports regarding the condition of City Park Pool. This work was
completed with Dennis Showalter in 1980 and 1981 and has been incorporated into the
current evaluation. Persons reviewing the earlier reports should be aware that the
estimates of cost presented therein were for a less extensive renovation project scope
and did not include any allowance for improvement of the bathhouse. Accordingly, the
J earlier cost estimates are not applicable to the present study scope. Our recent
inspection of City Park Pool has shown that most of the historical data, descriptions, etc.
contained in those two Reports remain applicable to the current conditions. In general,
the information from the earlier reports has not been repeated herein and it is suggested
that persons, who may be unfamiliar with the historical condition, details and problems
Jwith City Park Pool, should first review the earlier material in the Appendix.
The question has arisen as to why only City Park Pool was included in our earlier
_ work. Primarily, this was due to the influence of a Federal grant program for outdoor
recreation facilities which existed at that time. The grant program was a "matching
funds" program in which participating Cities were required to provide 50% of the project
cost. In 1980, the grant program rules were modified several times to decrease the
maximum grant amount which could be received by any City for one specific project.
This maximum dollar amount essentially limited any renovation project to a single Pool.
Although the City was aware of on-going problems at the Mercer Pool with respect to it's
original design and construction, equipment, etc. the City Park Pool was judged to be a
higher priority due to the excessively large water losses which were occuring and the
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potential for related damage. Additionally, as the larger, more heavily used facility it
was considered to have the highest priority for renovation. In 1981, the outdoor
recreation grant program was discontinued and further consideration of renovation for
either outdoor pool was temporarily discontinued due to a lack of funds.
Following your review of this information, we would be pleased to meet with you
and other members of the City's Administration to discuss this information and provide
additional detail, where necessary. In the meantime, should you have any questions or
require additional information, please contact us at your convenience.
RCB/rsb
Enclosures
Very truly yours,
HALL ENGINEERING COMPANY
F'u.i C. S..."
Richard C. Buss, P.E.
Project Manager
lk�n�a. L• Calasr^
Dennis L. Carlson
Mechanical Engineer
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potential for related damage. Additionally, as the larger, more heavily used facility it
was considered to have the highest priority for renovation. In 1981, the outdoor
recreation grant program was discontinued and further consideration of renovation for
either outdoor pool was temporarily discontinued due to a lack of funds.
Following your review of this information, we would be pleased to meet with you
and other members of the City's Administration to discuss this information and provide
additional detail, where necessary. In the meantime, should you have any questions or
require additional information, please contact us at your convenience.
RCB/rsb
Enclosures
Very truly yours,
HALL ENGINEERING COMPANY
F'u.i C. S..."
Richard C. Buss, P.E.
Project Manager
lk�n�a. L• Calasr^
Dennis L. Carlson
Mechanical Engineer
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INTRODUCTION
The purpose of this Engineering inspection and report has been to evaluate the
City's two existing outdoor swimming pools and to make recommendations as to the
feasibility, and estimated project costs where feasible, for renovation of each of the
facilities. This information was requested to assist the City Administration in future
decisions regarding possible replacement or renovation of the facilities. In addition,
there has been on-going concern relative to the continuously deteriorating condition of
certain components of these facilities and to precautions for swimmer safety,
particularly relating to diving area depths and configurations. These evaluations,
preliminary design concepts and estimated construction costs have been based upon our
Jexperience with similar pool renovation and new municipal swimming pool projects.
_ Each pool facility has been addressed separately in the following sections. A brief
summary of our conclusions and recommendations has been provided at the beginning of
each section. Additional detail of our evaluation and recommended action is provided
1 following the summary and also In the Appendix with respect to City Park Pool. We have
not attempted to address the ramifications involved with renovation, replacement or
j abandonment of either of these facilities with respect to current or future user demand
for the facilities. Likewise, we have not addressed similar questions concerning the
effect of renovating Mercer Park Pool with regard to possible construction of a joint
J City -School District indoor pool and recreation facility adjacent to Mercer Park or the
feasibility of operating both facilities during high -use summer periods. These questions
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J were beyond the designated scope of this study and require unknown demographic user
data as well as unknown knowledge of the attitudes, etc. of the administrative Boards
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and Councils.
Because of the preliminary nature of this study, the major components involved in
a renovation project have been broadly described and include many other detailed items
y of work which would be necessary to complete any of the general renovation iters.
Similarly, the estimated project costs Include many detailed items, which have not been
listed, necessary for a complete renovation. Renovation of the facilities has been
- evaluated because of the relatively good condition of major components of these
_ facilities. In situations such as this, renovation is often feasible and preferred due to
significant construction cost savings. It is often possible to salvage major components of
the existing facility (pool floor and walls, water treatment facilities, foundations, certain
piping, etc.) and to concentrate on replacing the "worn-out" components (recirculation
piping, decks, filtration equipment, bathhouse, electrical system, pool equipment, pumps,
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etc.). Renovation is not intended to be a repair process but to be a total reconstruction
intended to bring a facility into conformance with current standards of design and
construction, to correct deficiencies and to replace components which have caused
operational difficulties or high operating and maintenance costs (water leakage, poor
—' water quality due to inadequate circulation, etc.).
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The result of major renovation should be the start of a new service -life for the
new facility - not merely an extension of the existing facility's service -life. It has not
been uncommon for well constructed municipal pools to last for 40 years. Several other
pools, which we have worked on, have had service -life spans of over 45 years and City
Park Pool (constructed in 1947) is approaching 40 years of service. A thorough, well
designed renovation project should be expected to re-establish a new service -life of
approximately 40 years for most existing municipal pools.
In renovation, lengthy consideration must be given to the "fit" of replacement
construction with existing facilities. It would obviously be a wasteful practice to rebuild
a major component if it must be rebuilt again after 10 or 15 years when an associated
component reaches the end of its useful life. Study must be made of the remaining life
of all components and replacements made simultaneously for those elements whose
useful life must expire together. As an example: Renovation should not include
replacement of decks without replacement of underlying piping, etc. having a
substantially shorter life span unless analysis demonstrates that the decks can be
economically replaced as necessary with the shorter life span of the underlying piping.
Careful analysis of costs and life spans is necessary to determine the appropriate extent
of reconstruction in a renovation project.
One consideration and useful method in analyzing the need for renovation of some
items is the estimation of the benefits -to -cost ratio. For example, the cost of an
operation or maintenance item which must be repeated several times throughout the
useful life of the pool can be totalled and compared with the cost of a renovation
operation which might eliminate such maintenance. An example of this is the
replacement of diatomaceous earth filter bags. The probable cost (in constant dollars) of
this replacement is about $2,000 every four years. This is an expenditure of $22,000 over
the useful life of a typical pool. During the same time span, about $10,000 of
diatomaceous earth would be used with the filters. The combined cost of these two
Items would be approximately $32,000. Assuming a medium rate of inflation, the total
cost of these two items becomes approximately $50,000 over the pool life. If it is
possible to avoid this cost by a one-time expenditure of something less than $32,000, then
this alternative should be considered.
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etc.). Renovation is not intended to be a repair process but to be a total reconstruction
intended to bring a facility into conformance with current standards of design and
construction, to correct deficiencies and to replace components which have caused
operational difficulties or high operating and maintenance costs (water leakage, poor
—' water quality due to inadequate circulation, etc.).
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The result of major renovation should be the start of a new service -life for the
new facility - not merely an extension of the existing facility's service -life. It has not
been uncommon for well constructed municipal pools to last for 40 years. Several other
pools, which we have worked on, have had service -life spans of over 45 years and City
Park Pool (constructed in 1947) is approaching 40 years of service. A thorough, well
designed renovation project should be expected to re-establish a new service -life of
approximately 40 years for most existing municipal pools.
In renovation, lengthy consideration must be given to the "fit" of replacement
construction with existing facilities. It would obviously be a wasteful practice to rebuild
a major component if it must be rebuilt again after 10 or 15 years when an associated
component reaches the end of its useful life. Study must be made of the remaining life
of all components and replacements made simultaneously for those elements whose
useful life must expire together. As an example: Renovation should not include
replacement of decks without replacement of underlying piping, etc. having a
substantially shorter life span unless analysis demonstrates that the decks can be
economically replaced as necessary with the shorter life span of the underlying piping.
Careful analysis of costs and life spans is necessary to determine the appropriate extent
of reconstruction in a renovation project.
One consideration and useful method in analyzing the need for renovation of some
items is the estimation of the benefits -to -cost ratio. For example, the cost of an
operation or maintenance item which must be repeated several times throughout the
useful life of the pool can be totalled and compared with the cost of a renovation
operation which might eliminate such maintenance. An example of this is the
replacement of diatomaceous earth filter bags. The probable cost (in constant dollars) of
this replacement is about $2,000 every four years. This is an expenditure of $22,000 over
the useful life of a typical pool. During the same time span, about $10,000 of
diatomaceous earth would be used with the filters. The combined cost of these two
Items would be approximately $32,000. Assuming a medium rate of inflation, the total
cost of these two items becomes approximately $50,000 over the pool life. If it is
possible to avoid this cost by a one-time expenditure of something less than $32,000, then
this alternative should be considered.
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PART ONE
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CITY PARR POOL
& SUMMARY
7 It is the opinion of the Engineers that the condition of City Park Pool is
exceptionally good in consideration of the facility's age and that it should be renovated.
Major, important components of the facility remain in good condition and would
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represent large savings toward the construction cost of a new or "like -new" facility. The
_ existing pool is large, has adequate depth by current standards and has a functional
layout. Ideally, a separate diving tank could be constructed to separate diving activities
from swimming; however, the present diving area is adequate in terms of depth, side
clearance, etc. The T -configuration of the pool tank, which provides a large area of
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shallow water at the north end, is an excellant recreational pool layout which is ideally
suited for training young swimmers. Additionally, the large adjacent deck areas provide
a convenient area for close -by supervision of young swimmers in the shallow area.
In general, most of the problems with City Park Pool are related to the
unavoidable deterioration of certain building materials. Obviously, modern building
materials including stainless steel, plastics, fiberglass, etc. were not available at the
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time of its construction and other items have simply worn out from many years of use.
Although the water quality is not always adequate, we believe this is primarily due
to restricted recirculation and to inadequate circulation of chlorinated water to all areas
of the pool. Overflow gutter water recirculation piping was not designed into the
original pool and, as a result, there is no surface skimming of the pool water. Current
standards require that approximately 50% of a pool's recirculation flowrate be dedicated
J to the overflow gutter surface skimming action to remove floating material, oils, etc.
_ The existing bathhouse and fixtures have reached the end of their useful service -
life. The equipment and fixtures are either inadequate by current standards or badly
deteriorated. However, the floorplan and overall size of the bathhouse are adequate and
provide an effecient, functional layout. The bathhouse should be either totally replaced
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or extensively renovated. At this preliminary juncture, we believe that the possible
savings gained through extensive renovation would permit greater emphasis on interior
— fixtures and finishes. Either bathhouse proposal should provide a full roof over the entire
bathhouse, proper ventilation, separate chlorination facilities, etc.
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The estimated total project cost (less interest, legal and bond related expenses) is
approximately $715,000. Based upon other recent new municipal pool project costs, a
new pool of a similar size and layout, with similar bathhouse facilities, has been
estimated to cost approximately $1,300,000. Additionally, we would not recommend
attempting to demolish the existing pool and reconstruct a new facility in the same
location due to the difficulties and expense related to soils foundation problems which
would be expected to arise from such an operation. Accordingly, the cost of demolition
of the existing facilities and restoration of the site should be added to the estimated cost
of a new pool facility. Assuming complete demolition of the bathhouse, decks, etc. and
limited demolition of the pool walls and floor, the demolition and site repair could range
up to $25,000 depending upon the extent of the landscape restoration.
B. CONDITION OF THE POOL AND RELATED FACHATIPS
Pool Tank - The condition of the pool tank (floor and walls) is still exceptionaly
good as noted in our earlier reports provided in the Appendix; refer to the more detailed
description on pages 1-8 of the March 6, 1981 Report. In the interium period since that
Report, the City has completed two of our highest priority recommendations: complete
reconstruction of the pool wall and floor joints and the selective repair of badly leaking
recirculation piping. These two items were believed to be causing the majority of the
loss of pool water and were of particular concern with respect to erosion damage to the
supportive soils beneath the pool tank and decks. These repairs have greatly reduced the
loss of water from the pool; however, observation of the adjacent discharge storm sewer
manhole indicates that substantial water is continuing to leak from unknown sources. As
a result of the recent joint repair program and the age of the recirculation piping, it is
our opinion that the majority of the current water loss is probably originating from
deteriorated recirculation piping. The recommended replacement overflow gutter and
recirculation piping would eliminate this problem and prevent future recurrence.
Spelling of the surface concrete is present at various locations; however, this is expected
and somewhat unavoidable due to freezing and thawing effects and the repeated summer
submersion and winter exposure of an outdoor pool. We have successfully used
permanent high-strength epoxy concrete materials for these repairs on other pool
renovation projects and, after repainting, it is difficult to locate the repairs.
The floor drain sumps and main drain piping are still somewhat of an undefined
problem. We would anticipate that the drain sumps should be totally removed and
reconstructed and that the main drain piping should be re -lined or pressure grouted to
preventleakage.
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Water Filtration And Recirculation System - The water recirculation and
treatment equipment at City Park Pool is in need of extensive renovation; however,
major components of the system could be economically incorporated Into a new filtration
and recirculation system. We believe that the existing style of sand filtration (which is
the type of filter almost invariably used for filtration in municipal potable water
treatment plants) is the most cost-effective type of filter system, particularly for the
difficult conditions encountered in operation of an outdoor municipal pool. Its operation
is easily understood and passed on between managers and operators. Once constructed,
they require no further expenditure for replacement parts or operating supplies over
their service -life. Because of the concrete construction, their service -life should equal
or exceed the pool tank itself, as is the case with the City Park Pool filters. Piping,
underdrain tile, backwash troughs, pumps, etc. would require replacement; however, it is
recommended that the basic filtration process be retained and improvements provided to
enhance it's performance.
The existing recirculation piping has deteriorated beyond repair (see page 5 of the
March 6, 1981 Report for additional detail). The original pool design did not provide for
recirculation of overflow gutter water to the filters for treatment and disinfection.
Water flowing into the overflow gutters is discharged to waste, which is contrary to
current design and health standards. To control this loss, and to provide surge storage
for water displaced by swimmers entering the pool, the pool water level is generally
operated at an elevation several inches below the overflow gutter. This method of
operation prevents any surface skimming action to remove floating materials, oils, etc.
A combination overflow gutter and recirculation system would be designed to permit
recirculation from the overflow gutters as well as the pool floor drains to provide for
balanced withdrawal and treatment of the pool water.
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PART TWO
MERCER PARR POOL
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A. SUMMARY
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It is the opinion of the Engineers that the existing condition and design of Mercer
Park Pool do not merit extensive renovation of the facilities except as an alternative to
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construction of totally new outdoor facilities at this location. This conclusion is based
upon the inadequate diving area configuration, the overall size of the pool, the type and
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condition of the water filtration equipment, recirculation piping and the design of the
bathhouse. However, depending upon the City's proposed length of future service -life for
this facility, certain relatively major repairs or renovation may be necessary to assure up
to 15 years of additional service.
Based upon our experience, the existing diving well does not provide adequate,
safe diving conditions.
The City has removed the original 3 -meter (high) diving stand,
leaving the 1 -meter (low) stand in place. Although there is an adequate depth at the
plummet or tip of the diving board, the floor slopes sharply upward to a sidewall and
backwall depth of only 5 feet. Unfortunately, the recreational diver is often
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inexperienced and careless and springs far forward or to the side of the intended diving
area and into the shallower water areas. Similar problems have existed In most of the
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other swimming pools which the Engineers have inspected including municipal, university
and private facilities. Although the City has now removed the original 3 -meter (high)
diving stand, potential liability relative to diving Injuries has caused many Owners to
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provide additional depth over a wider diving area. If major renovation is considered, it is
recommended that part of the existing diving area be demolished and a new expanded
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diving area be constructed.
Analysis of the attendance records, past experience of the pool staff and
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experience with other similar municipal pools indicates that the swimming pool area and
decks are inadequate. The City's east side growth over the last 20 years has simply
overloaded the original design of the facility. The City's staff is well aware of this
- condition and it's relevance to this report is only in relation to evaluating the extent to
which renovation is reasonable for an undersized facility. Either expansion, or
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construction of an additional pool adjacent to the existing facility, could alleviate this
condition.
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Although the pool water quality is generally adequate, the existing water
filtration equipment and recirculation system require some extensive repairs. The
continuing loss of water can be generally attributed to breaks in the pressurized
recirculation piping. Due to the volume of water loss, it is expected that such breaks in
—' the piping have caused washing away of some sand backfill from below the pool decks and
r from behind pool walls. Such piping breakage is a general indicator of settlement and
age of the original piping and should be expected to continue to occur, probably at an
_ accelerated rate, as has been experienced with similar conditions at City Park Pool over
the past years.
r The bathhouse fixtures are rapidly approaching the end of their useful service -
life. The size and floorplan of the bathhouse are inadequate with respect to the large
number of users. As part of any major renovation, the bathhouse should be enlarged and
redesigned to provide an efficient, functional layout. Major fixture replacement and
refurbishing should be considered as part of any program which is intended to
rlsignificantly extend the service life of the facility for 10 to 15 years.
The following estimates of cost have been based upon preliminary broad scope
descriptions of repairs or renovation for these alternative projects. Following the City's
Initial review of these, it should be possible to more clearly define a proposed project
scope and to develop a more specific project description and estimate of cost. In the
event that Mercer Park Pool is maintained "as -is" and is to continue to be used for the
short-term future, it is our recommendation that a minimum of $30,000 be allocated for
equipment replacement and repairs, piping and fittings replacement, etc. These items
are primarily safety and operation and maintenance related items.
A second alternative would be to proceed with the minimum renovation necessary
to extend the facility's service -life for an additional 15 to 20 years. This renovation
would serve to correct some of the recirculation problems, partially remodel the
bathhouse interior to provide a more functional layout and maximize utilization of the
available floorspace, reconstruct the pool joints, relocate the 1 meter diving stand and
complete the minimum equipment related renovation items from the first alternative.
This alternative should extend the service -life of the facility for an additional 15 to 20
years; however, it will not address the major problems involved with the inadequate
recircultion piping system, inadequate pool and bathhouse areas, etc. The preliminary
estimate of cost for this alternative is approximately $135,000.
The third alternative would include complete renovation of the facility to provide
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an expanded, "like -new" pool and bathhouse. This project would entail demolition of the
existing diving well and construction of a larger, deeper diving area, expansion of the
shallow water area to provide for the normal user loadings, new combination overflow
gutter and recirculation piping, bathhouse expansion and remodeling and the items listed
under the previous alternatives. Our preliminary estimate of cost for this alternative is
approximately $455,000.
B. CONDITION OF THE POOL AND RELATED FACHXrM
The following sections summarize our observations of the physical inspection of
the pool facilities and coordinated review of the construction drawings.
Pool Tank - The pool floors and walls appear to be in relatively good condition.
No apparent major settlement is evident and the irregular concrete cracking patterns are
not abnormal. Adequate expansion and construction control joints were provided for both
the floor and walls. The pool walls and overflow gutter section are relatively heavily
reinforced in consideration of the maximum wall height of 5'-011. In this type of pool
design, the additional depth greater than 5 feet is obtained by a sharply downward sloping
pool floor. The concrete pool floor is not particularly heavily reinforced; however, the
lack of displacementor settlement would indicate that the combination of the existing
steel reinforcement, the floor subgrade and concrete thickness are adequate. Some
leakage is probably occuring through the floor cracks and pool joints; however, the
underdraln system is of adequate design to collect such leakage and dispose of it into the
adjacent sump pump manhole without damage to the pool foundations.
At the present time, the pump in the adjacent manhole is inoperative and the
manhole is filled with pool water up to the same level as the adjacent swimming pool.
The purpose of the underdrain system in swimming pool design is to remove leaked water
from behind the pool walls and from beneath the pool floor to prevent the surrounding
soils from becoming completely saturated over the course of a summer. From an
engineering viewpoint, this is desirable for a variety of reasons; however, the major
reason is to help to control the effect of frost action behind the walls due to freezing of
super -saturated soils during the winter non-use months. Although the underdrain piping
system is provided with a valve to prevent backflow, it is unlikely that the valve is still
operating and, in general, this type of backflow valve would not prevent the underdrain
system from flooding.
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an expanded, "like -new" pool and bathhouse. This project would entail demolition of the
existing diving well and construction of a larger, deeper diving area, expansion of the
shallow water area to provide for the normal user loadings, new combination overflow
gutter and recirculation piping, bathhouse expansion and remodeling and the items listed
under the previous alternatives. Our preliminary estimate of cost for this alternative is
approximately $455,000.
B. CONDITION OF THE POOL AND RELATED FACHXrM
The following sections summarize our observations of the physical inspection of
the pool facilities and coordinated review of the construction drawings.
Pool Tank - The pool floors and walls appear to be in relatively good condition.
No apparent major settlement is evident and the irregular concrete cracking patterns are
not abnormal. Adequate expansion and construction control joints were provided for both
the floor and walls. The pool walls and overflow gutter section are relatively heavily
reinforced in consideration of the maximum wall height of 5'-011. In this type of pool
design, the additional depth greater than 5 feet is obtained by a sharply downward sloping
pool floor. The concrete pool floor is not particularly heavily reinforced; however, the
lack of displacementor settlement would indicate that the combination of the existing
steel reinforcement, the floor subgrade and concrete thickness are adequate. Some
leakage is probably occuring through the floor cracks and pool joints; however, the
underdraln system is of adequate design to collect such leakage and dispose of it into the
adjacent sump pump manhole without damage to the pool foundations.
At the present time, the pump in the adjacent manhole is inoperative and the
manhole is filled with pool water up to the same level as the adjacent swimming pool.
The purpose of the underdrain system in swimming pool design is to remove leaked water
from behind the pool walls and from beneath the pool floor to prevent the surrounding
soils from becoming completely saturated over the course of a summer. From an
engineering viewpoint, this is desirable for a variety of reasons; however, the major
reason is to help to control the effect of frost action behind the walls due to freezing of
super -saturated soils during the winter non-use months. Although the underdrain piping
system is provided with a valve to prevent backflow, it is unlikely that the valve is still
operating and, in general, this type of backflow valve would not prevent the underdrain
system from flooding.
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Under certain conditions, the pool's underdrain system would also serve to
partially dewater the high groundwater level in the deep area of the pool. It is possible
that the manhole pump was taken out of operation because it was found to be
continuously operating in an attempt to dewater the surrounding groundwater. As part of
this work, we obtained the soil boring records from the construction of the adjacent
Junior High School. Although the original soil borings for the swimming pool itself do not
indicate the presence of groundwater, the adjacent school project borings do Indicate the
presence of groundwater at an elevation higher than the lower underdrains. In addition,
it is well known that the groundwater level rises approximately 5 or 6 feet into the diving
well during the non-use months of the year. Special valves in the pool drain system
permit the groundwater to flow into the pool. This is necessary to offset the natural
buoyancy of a pool tank constructed below the groundwater table level. It is also
necessary due to the additional buoyancy which occurs when a pool leaks a substantial
amount of water and saturates the soils surrounding the tank. It is possible, with a
severely leaking pool, to create hydraulic conditions in the area immediately surrounding
the pool which would be equivalent to the buoyancy of the entire pool submersed in
water. Obviously, the uplift buoyancy forces created in either of these conditions are
tremendous and concrete tanks can be moved by such (floating) forces.
Water Filtration and Recirculation System - The water filtration equipment at
Mercer Park Pool is in need of extensive repairs. The filtration process is based upon a
"Diatomaceous Earth" type of filter. These consist of plastic grids on a framework which
are covered by cloth filter bags. The filter bags are in turn covered by a thin layer of
diatomaceous earth which Is applied from a slurry solution. The filter cake of
diatomaceous earth performs the actual operation of straining and filtering the water as
It is drawn through this cake by the recirculation pump. Although this system appears to
be desirable due to its compact size and lower initial cost, the diatomaceous earth (D.E.)
process Is complex and difficult to operate. In our opinion, this often results in poor or
varying water quality In an outdoor municipal swimming pool application. It has been our
experience that the less complicated sand filtration system used at City Park Pool is
highly preferable over the D.E. system due to its longer service life, lower operating
expense, simplicity and ease of understanding In operation for various operators over the
long service life of a municipal pool. In part, the past "murky" water quality conditions
at Mercer Park Pool are almost certainly due to difficulties In maintaining consistent
filtration operation with a D.E. filtration system. In the short-term, an explicit
operations manual should be prepared with detailed operating procedures for operation of
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the filter system and related equipment. As part of major renovation or expansion, the
D.E. filters should be replaced with a sand filtration system similar to the City Park
filter system.
The filtered water recirculation system at Mercer Park Pool is a peculiar design.
Although the pool is relatively current in age, the recirculation system does not remove
any pool water from the floor of the pool for subsequent filtration and treatment. All of
the pool water removed for treatment purposes comes from the overflow gutters. This is
not an adequate recirculation system and is particularly ineffective at Mercer Park
because of wind-blown dirt carried into the pool from the adjacent softball fields. In
addition, the deck level gutter design does not provide any surge storage in the pool tank,
(surge storage is necessary to temporarily store the pool water displaced by incoming
swimmers, temporary storage is necessary because the pool has to restore itself to a
normal full condition during the evening and other non-use periods). It is necessary that
a pool be totally full during the "quiescent" non-use periods for the overflow gutters to
operate correctly. The surface skimming action, through slow recirculation and overflow
into the gutters, is essential in removing body oils, suntan oils and all other floating
materials which accumulate in the water during use of the pool. Generally, any outdoor
pool "catches -up" during the nighttime non-use periods through continuous filtration and
disinfection of the pool water. Is virtually impossible for any outdoor swimming pool
facility to keep up through filtration and disinfection during the daytime due to the high
swimmer loading effect on the water quality as well as the loss of disinfectant to the
effect of sunlight, etc. On most municipal pools, the required surge storage is provided
in the swimming pool Itself by constructing the pool gutter at a lower elevation than the
adjacent pool deck. This permits the water level to rise in the pool by several inches as
swimmers enter and leave the pool (as is the design and condition at the City Park
Pool). However, the deck level overflow gutter design used at Mercer Park prevents this
type of operation. The actual method of operation appears to be: the automatic water
makeup valve fills the pool to its overflow elevation at the end of the operating day; this
permits the pool to properly filter and chlorinate during the nighttime non-use hours until
swimmers enter the pool the following day; the surge of water displaced by the Incoming
swimmers is then caused to overflow to waste until the swimmers leave for the day at
which time the automatic makeup valve again refills the pool to offset the earlier
displacement which flowed to waste. This is a somewhat erratic method of operation and
does not lend itself to uniformity of filtration or disinfection of the pool water.
/3Sx
As noted earlier, no pool water is removed from the bottom of the Mercer Park
Pool for filtration which is inadequate with respect to current design standards. In
various discussions with some of the older operators and managers, it was the general
consensus that Mercer Park has had problems through the years with "murky" water
conditions. In situations where no water is being removed from the floor for filtration
and disinfectant, it would be expected to have murky water conditions as the least water
quality problems. In the opinion of the Engineers, the reason that such water quality
conditions do not currently exist at Mercer Park is related to the extremely high user to
pool area ratio. We believe that the continuous agitation of the pool volume by swimmer
activity is sufficient to temporarily suspend heavier materials in the pool water which
permits their filtration and removal by the overflow gutter system.
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Mr. Dennis Showalter
Director of Recreation
City of Iowa City
220 S. Gilbert Street
Iowa City, IA 52240
-CON
ET•IOVA
JG ENGIN
IOWA • 52
November 17, 1980
Re: City Park Pool
Iowa City, Iowa
-33E3-3710
Dear Mr. Showalter:
Responsive to your instructions we have completed a physical
examination and preliminary engineering evaluation of the city's municipal
swimming pool located in City Park. The following discussion is a brief
summary of that investigation and presents our recommendations relative
to further action. As we have previously discussed, the nature of
this investigation was to be informal and, as a result, we have not
included extensive written evaluation of the facilities, their condition,
or the specifics of the suggested renovation. Following your review of
this material we would be pleased to meet with you and your staff to
discuss this information and provide more detailed information.
A. General.
The purpose of this preliminary engineering study was to examine the
structural condition and general adequacy of the city park municipal
swimming pool to provide information necessary for future decisions
regarding possible renovation of the facilities. Concern relative to
continuously increasing maintenance and operation costs, includinq
the loss of approximately 750,000 gallons of water per season, and the
generally deteriorated condition of certain parts of the facility prompted
this evaluation. For purposes of this examination we have proceeded on the
basis that the city recreation staff intended an investigation of the
potential for upgrading of the existing swimming pool facilities through
significant renovation. Such renovation is not a repair process but entails
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reconstruction of a facility, or segments of a facility, in order to bring
it into, or as close to as possible, conformance with current standards
of design and construction. Due to significant economic advantages renovation
is often preferred, in lieu of replacement, when the condition of the existing
facility will so permit. Renovation of this nature is considered to
essentially reestablish a new service life cycle for a facility and is not
simply a minimal extension of the existing service cycle. Similar renovation
j I
projects have been successfully undertaken at other locations and are becoming
increasingly common due to rapidly rising costs of construction.
We have reviewed the original construction drawings for the project and
have also inspected the facilities with Mr. Robert Lee and Mr. Paul Crutchfield.
J Our evaluation has included their input relative to experiences in operation
and maintenance problems and their suggested emphasis in renovation for the
correction of these items.
In the design of renovation work extensive consideration must be given
to the relationship or "fit" of those portions of the existing facility
which are to be replaced relative to those that are to remain. In instances
r1 where project budgets.may limit the scope of reconstruction it is advisable
~J to minimize any partial renovation of parts of a facility which would require
significant renovation at a later date; particularly if that partial renova-
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tion would restrict renovation of those facilities which are of major concern
at the present time. Based upon conversation with the Recreation Department
staff, the emphasis of our review has been concentrated upon the renovation
_ of the swimming pool and related facilities, generally excluding the bathhouse
facility.
_ B. Condition of the Pool and Related Facilities.
The structural integrity and general condition of the swimming pool tank
is exceptionally good, particularly in consideration of the facility's aae,
-' and no significant repairs to the concrete work would be anticipated. Some
localized surface deterioration has occurred and repair of these would be a
_ fairly straightforward operation. Based upon our investigation we believe i
ithat a project entailing the following general items would correct the major
deficiencies in the existing facility.
Recommended Project Scope:
1. Complete removal and reconstruction of the pool tank expansion and
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control joints with permanent elastomeric joint material.
2. Abandonment of the existing pool water recirculation piping system
and installation of new recirculation piping including provisions
for recirculation of the overflow gutter water which is presently
wasted to the sanitary sewer.
3. Replacement of all pool decks and sidewalks necessary as a result
of the installation of recirculation piping.
4. Renovation of the existing water filtration system.
5. Replacement of deteriorated deck equipment with stainless
steel equipment.
6. Miscellaneous reconstruction, replacement, site restoration,
etc. necessary to complete these items.
As would be expected, other items must also be removed to permit the
renovation construction and replacement of these items is necessarily
included as part of project. Although complete renovation of the existing
bathhouse facility was excluded from the project scope an allowance has been
included to provide for minimal renovation necessary to meet certain
anticipated project requirements.
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rl C. Estimated Project Costs.
n As previously discussed, to avoid the expense of a written preliminary
report an extensive written review of our investigation and preliminary
7 design suggestions was not prepared as part of this submittal. We have
developed a renovation project scope in accordance with the concerns of your
staff and our experience with the requirements of similar renovation projects.
-J The following figures are our estimates of the cost for this renovation based
upon recent construction bids. Additional detail can be provided in our
review of this submittal.
Estimated Project Cost:
A. Renovation including sandblasting and repainting of
the pool tank, concrete surface deterioration repairs, complete
pool tank and deck joint reconstruction, complete reconstruction
of pool water recirculation system, complete replacement of
pool decks and sidewalks necessitated due to recirculating
piping replacement, renovation of the existing water filtration
system, allowance for necessary miscellaneous bathhouse renovation,
site repairs, construction contingency, and construction
overheads....................................................$ 273,600.00
35-X
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B. Administrative project overheads include preliminary
i — engineering services, final engineering design, preparation of
plans and specifications, bond attorney and other legal services,
interium financing expenses, construction contract administration,
— andnsoaforthstrThese,itemsconstruction
generallynrangeifromml6artol20%eofithe
construction cost of a project with renovation oriented projects
generally falling within the higher percentage requirements due to
the labor intensive nature of the project. For preliminary
purposes an approximate administrative overhead figure of 20%
hasbeen used ...............................
S 54,700.00
Total Estimated Project Cost ............. $ 328,000.00
Although the estimated project costs for this work may appear to be high in
relation to other major construction projects this is the result of the ad-
ditional difficulties involved in renovation work including the demolition of
existing structures, restrained working conditions, protection of adjacent
existing facilities, requirements for making new work fit with old, and
similar constraints. The unit costs utilized for these estimates, while only
estimates, have been based upon similar work currently under construction.
An allowance for inflation through the second quarter of 1981 has been
included in the estimates to allow for the normal schedule of events in a
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project of this type.
D. Conclusions.
Based upon our investigation of the existing swimming pool facilities
— it is our opinion that certain aspects of the facility have reached the end
of their useful service life and require replacement. The structural
condition of the swimming pool is exceedingly good and above that which
would normally be expected. Therefore it is our recommendation that
renovation sould be emphasized in lieu of consideration of total replacement.
Additionally, construction cost for a totally new facility, of a similar
design, size, and location to that which presently exists, has been estimated
to be approximately $1,115,000.00. The suggested renovation project should
provide a new service life cycle for the facility of at least 40y
I ears. '
E. Recommendations.
- As a result of the current conditions relative to availability in the
50% cost sharing grant program through the Heritage Conservation and
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Recreation Service it is our recommendation that consideration be given
to application for a grant to share in the cost of this renovation. To be
eligible for consideration in the grant program it is necessary for the city
to tentatively allocate their 50% matching share of the funds. If such funds
are to be provided through issuance of general obligation bonds, it is necessary
that the bond issue election process have already been completed. Should
another funding source be utilized, it is necessary that the City confirm that
their share of the funds would be available should the grant be approved.
Grant application review is completed on a quarterly basis with the next
quarter's deadline being December 31st. Should a decision be made to proceed
with these improvements, it is recommended that the city move as quickly as
possible in this matter as the winter quarters have generally had a lower
number of competing grant applications. We have prepared a series of successful
applications for similar projects and, of course, would be pleased to complete
the application package and supporting documents.
We have briefly summarized our preliminary evaluation and following
your review of this material we would be pleased to meet with you and your
staff to discuss the suggested renovation details and our recommendations
relative to subsequent action by the city in this matter. Thank you.
Respectfully submitted,
Richard C. Buss, pE.
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March 6, 1981
Mr. Dennis Showalter
Director of Recreation
City of Iowa City
220 So. Gilbert Street
Iowa City, Iowa 52240
Re: City Park Pool
Dear Mr. Showalter: Iowa City, Iowa
In accordance with our discussion we have completed a second
evaluation of the Municipal Swimming Pool located in City Park.
The purpose of this investigation has been to develop recommenda-
tions relative to a limited repair program to reduce the water
losses occuring at the facility during the operating season. Ile
have followed an informal report format to minimize the expense
and would be pleased to meet with you and your staff to provide
additional detail.
In the course of this review it has come to our attention
that a much greater volume of water is lost from the facility
during each season's operation than we believed to be the case
during our earlier work. As noted in our November 17, 1980, re-
port we understood that the total volume lost in a season was
approximately 750,000 gallons. Subsequent data indicates that
the water usage for 1980 is over 28 million gallons or almost
38 times greater than the previous number. These losses are of
concern for several reasons; the most important relating to po-
tential structural damage to an otherwise structurally sound
facility. As a result, we have also re-examined our earlier
evaluation relative to renovation and have included our revised
recommendations. We have separated these two topics and have
presented our suggestions relative to interim repairs in the
main section of this report. our revised evaluation and recom-
mendations have been attached as Appendix A.
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The facility inspection was completed during recent warm
weather and concentrated on the pool floor and wall joints, water
filters, and water recirculation piping system. We believe that
- the water losses would originate with problems in one, or a com-
bination, of these sytems. Water usage and maintenance records
for the facility were obtained from Mr. Robert Lee and we have
discussed past problems and repair programs with him. The water
usage records are presented in Table One. The first entry is for
1955, which was the facility's sixth operating season.
For the benefit of interested persons, possibly unfamiliar
with the facility, we have summarized a few important facts rela-
tive to the swimming pool. The approximate volume of the pool is
750,000 gallons. As was standard engineering practice in that era,
the original design did not provide for recirculation of the pool
water from the overflow gutters but instead wasted this water to
the storm sewer system. The only pool water which is recirculated
for filtration and re -use is removed through four main floor drains.
In addition to the water wasted through the gutter systems, other
losses which would be expected during normal operation basically
include the volume lost during backwash of the filters, evapora-
tion, and the amount splashed out of the pool by swimmer activity.
We believe the abnormal water usage is related to leakage from a
combination of the floor drain sumps and piping, the pool floor
and wall joints, and the filtered water recirculation piping.
Although our experience with pools of similar size and design,
and our calculations of the various losses relative to backwash,
etc., indicate that even the water usage for 1955 and 1957 appears
excessive; we have nevertheless assumed the approximate volume of
6.2 million gallons per season used in these years to be the cor-
rect anticipated usage during normal operating conditions. This
assumption was based upon the relative newness of the facility in
1955 and 1957, six and eight years respectively. The accuracy of
this assumption cannot be verified because of the unknowns relative
to water losses through the gutter system and unknown past operating
procedures.
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T A B L E O N E
ANNUAL WATER USAGE
CITY PARK POOL - IOWA CITY, IOWA
Year
Attendance
Water Usa a
Annual Increase
(Gallons Yr)
(Gallons Yr)
1955
86,805
6,145,000
1957
86,911
6,205,000
60,000
1959
105,760
12,078,000
6,873,000
1977
70,696
12,291,000
213,000
1978
72,521
15,988,000
3,697,000
1979
70,565
17,201,000
1,213,000
1980
71,270
28,359,000
11,158,000
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Total Cost
$ 888
912
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2,058
3,093
5,499
6,268
9,705(Est'd)
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As indicated in Table One, the pool presently looses a
very significant volume of water each season, approximately 38
time greater than the entire volume of the pool. Additionally,
the volume lost is increasing significantly each year. The
volume lost from unanticipated conditions, i.e., leakage, etc.,
is considered to be that volume over the 6.2 million gallons per
year based upon the assumptions of the previous paragraph. The
increase in the volume lost for each year has been tabulated in
Column 4 of Table One.
It is believed that these losses are occuring from the three
locations previously listed. Each of these have been separately
described in the following paragraphs. We have also summarized
the losses and presented recommendations relative to partial
correction of the water loss conditions.
A. Floor Drain Sumps and Piping
Past testing and televised inspection of the floor drain
piping indicated that the piping and joints were intact. However,
the deep water area floor drain's proximity to the underdrain sys-
tem, located beneath the pool floor, raises concern that water is
being lost through loose pipe joints, bad construction joints in
the drain sumps, etc. These losses cannot be accurately deter-
mined but would be expected to be relatively insignificant in
relation to the total volume lost from the pool. Certain of these
deficiencies could be corrected as part of a joint resealing pro-
gram but the remainder would probably be corrected only as part
of a major renovation project.
B. Pool Floor and Wall Joints
The attached photos, taken during the last inspection,
illustrate the condition of the pool joint seals. The sealed
joints are located at the expansion joints between the separate
concrete panels which comprise the pool floor, at the base of
the pool walls, and in the pool walls at expansion and construc-
tion joints. A mechanical pencil has been shown in some of the
photos to provide a sense of scale. The following descriptions
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As indicated in Table One, the pool presently looses a
very significant volume of water each season, approximately 38
time greater than the entire volume of the pool. Additionally,
the volume lost is increasing significantly each year. The
volume lost from unanticipated conditions, i.e., leakage, etc.,
is considered to be that volume over the 6.2 million gallons per
year based upon the assumptions of the previous paragraph. The
increase in the volume lost for each year has been tabulated in
Column 4 of Table One.
It is believed that these losses are occuring from the three
locations previously listed. Each of these have been separately
described in the following paragraphs. We have also summarized
the losses and presented recommendations relative to partial
correction of the water loss conditions.
A. Floor Drain Sumps and Piping
Past testing and televised inspection of the floor drain
piping indicated that the piping and joints were intact. However,
the deep water area floor drain's proximity to the underdrain sys-
tem, located beneath the pool floor, raises concern that water is
being lost through loose pipe joints, bad construction joints in
the drain sumps, etc. These losses cannot be accurately deter-
mined but would be expected to be relatively insignificant in
relation to the total volume lost from the pool. Certain of these
deficiencies could be corrected as part of a joint resealing pro-
gram but the remainder would probably be corrected only as part
of a major renovation project.
B. Pool Floor and Wall Joints
The attached photos, taken during the last inspection,
illustrate the condition of the pool joint seals. The sealed
joints are located at the expansion joints between the separate
concrete panels which comprise the pool floor, at the base of
the pool walls, and in the pool walls at expansion and construc-
tion joints. A mechanical pencil has been shown in some of the
photos to provide a sense of scale. The following descriptions
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indicate the approximate location of the photographs:
Photograph Number Description
1 Pool floor expansion joint;
illustrates detail, from above,
of a typical adhesion failure
of the sealant material with
the adjacent concrete.
2 Pool floor expansion joint;
illustrates magnitude of joint
failure shown in Photo No. 1.
3 Pool floor expansion joint;
illustrates typical location
where joint material is totally
missing.
4 Joint at bane of pool wall;
illustrates general adhesion
failure at joint between pool
floor and wall
5 Wall joint;
illustrates unsealed wall joint;
however, this is not typical of
all wall joints
Our inspection found that more than 758 of these joints have
failed in a manner similar to that illustrated in the photographs.
Joint materials are intended to maintain a water -tight seal at
the joint by stretching and compressing when movement in the joint
occurs as a result of expansion and contraction of the concrete.
The adhesion failure, at the point of connection between the joint
material and concrete, eliminates the water -tight seal and permits
leakage from the pool. Although the openings appear relatively
small, there are more than 1,100 lineal feet of joint in the pool
which are subjected to substantial pressure when the pool is filled
with water.
Bas d t h'
e upon pas experience, in w ich we have been able to
regularly monitor similar swimming pool leaks, we have estimated
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that approximately 1 to 1.5 million gallons of the total water
usage per season is lost through the joints.
A vitrified clay tile underdrain system was constructed
beneath each pool floor expansion joint. It is expected that
- the leakage drains into this system and is eventually wasted
into the storm sewer system. The underdrain system is intended
to relieve hydrostatic pressure beneath the pool floor and to
collect some leakage; however, this system is not designed to
carry the volume of water which is presently required.
C. Filtered Water Recirculation Piping System
The original pool plans have several discrepancies between
the drawings and actual construction. Based upon Bob Lee's
observations during several piping repair projects, it is be-
lieved that the majority of the filtered water return piping was
constructed in the earth fill behind the pool wall and not in
the concrete wall as shown on the plans.
;I As early as 1962, major repairs to the piping system were
necessary due to leakage. The attached sketch from the City's
Recreation Department, Figure One, illustrates the extent of
those repairs. These repairs were probably responsible for
stabilization of the water usage at approximately 12 million
_i gallons per season for the period from 1959 through 1977.
-, Because the piping system is concealed, estimates.of the
condition of the system have to be based upon experience of
similar situations. As is common for pools of this age, the
piping system is probably in very bad condition due to a com-
bination of corrosion and differential settling of the earth
fill. Piping systems of similar age and construction, which
have been uncovered, have generally been in a badly deteriorated
condition.
The plans indicate that the gutter overflow piping was
constructed at a lower elevation than the filtered water recir-
culation piping. If this is correct, the leakage is probably
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flowing into the gutter waste piping. In the process it would
_ be expected to wash away earth fill including some supportive
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fill beneath the gutter waste piping. This erosion results in
development of large voids beneath the pool decks and loss of
support for the decks as well as both the recirculation and gut-
ter overflow piping. Bob Lee reported that a large void, similar
to the condition described, was uncovered as part of the 1962
repair program. As this process continues, progressively worse
drainage conditions develop which, in turn, cause even greater
erosion and related problems.
The rapidly increasing water usage during the past three
-�
operating seasons indicates that progressive deterioration is
probably occuring. Figure Two illustrates the rapid increase
in water usage within the recent past. After adjustment for
normal usage, the pool is presently losing water at the rate of
264,300 gallons per day or 185 gallons a minute.
I
Although the plans do not show a foundation underdrain
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system at the base of the pool walls, such systems were usually
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installed to relieve hydrostatic pressure behind the walls and
to reduce soil moisture and the respective frost action on the
pool walls and footing. Based upon the existence of such drains
in pools of similar design and the existence of underdrains be-
neath the pool floor expansion joints, we believe that an under -
drain system may also have been installed at the base of these
7
pool walls. If such a system does exist, it raises additional
I
concern relative to potential washing away of backfill through
this system as well. These conditions could result in under-
mining of the earth foundation beneath the pool wall footings
and subsequent movement of the walls. Erosion of earth fill is
—
not uncommon and a similar situation, which resulted in struc-
tural damage to a pool wall has required removal and reconstruc-
tion of the wall as part of a recent swimming pool renovation
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project.
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RECOMMENDATIONS
This section of the report presents suggestions for tem-
porary repairs which might be undertaken to reduce current water
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losses from the facility. Appendix A presents our revised con-
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clusions and recommendations relative to major renovation of the
swimming pool facility.
Temporary repairs to the pool should probably include com-
plete reconstruction of the pool joints and selective piping
system repairs. Joint repairs are fairly straightforward but
relatively expensive. It was not possible to determine, from
examination of a sample of the existing joint material, whether
the existing materials are a polysulfide or polyurethane -based
sealant. Both have been used as pool sealants in the past; how-
ever, polysulfides were not intended for use under conditions
subject to hydrostatic pressure. Additionally, many manufacturers
of polyurethane -based sealants have also removed their products
from recommended use under hydrostatic pressure conditions. How-
ever, joints sealed with the polyurethane compounds have success-
fully withstood continuous, year -around hydrostatic pressure for
over ten years in projects with which we are familiar and we
believe that the polyurethane -based materials are the best pro-
duct available for this application. Experience indicates that
careful compliance with the material specifications and manufac-
turer's instructions are necessary for adequate bonding to devel-
op. Complete removal of all moisture, asphaltic -based materials,
earlier sealants, and other material is absolutely necessary and
such conditions are often difficult to achieve. To aid in devel-
oping better adhesion, manufacturers have developed an adhesive
primer for application to the concrete prior to installation of
the sealant material. Careful installation in this manner should
provide a long life joint sealant system. Repair of the pool's
joint system is expected to reduce the seasonal water loss by 1
to 1.5 million gallons and is estimated to cost approximately
$11,000.
Selective piping system repairs are difficult to evaluate.
The major problems involved include locating the largest leaks
beneath the concrete decks and making adequate repairs without
causing additional damage to an already fragile piping system.
Our past experience has indicated that the process of excavation
and repair of the leaking section often subjects the adjacent
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piping system sections to additional stress which cause leaks
to develop in the adjacent sections. As a result, the efforts
in attempting such repairs may often result in additional damage.
The estimated cost of such repairs would vary so greatly, depend-
ing upon actual conditions as they were uncovered and the number
of repairs, that no estimate could be made; however, an allowance
of $20,000 would not seem excessive.
Although certain aspects of City Par]: Pool have reached the
end of their useful service life, the overall condition of the
facility is exceedingly good and should not be permitted to con-
tinue to deteriorate. As discussed in Appendix A, we believe
that major renovation within the very near future is necessary;
however, should such repairs not be undertaken it is recommended
that temporary repairs should be attempted to protect the facility
from additional deterioration until such time that the City may
undertake the necessary renovation.
Following review of this material we would be pleased to
meet with you and your staff to discuss our recommendations
relative to this matter. Thank you.
RCB/lf
Respectfully submitted,
Richard C. Buss, P.E.
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RICHARD C. BUSS P. E.
_! CONSULTING ENGINEER
IOWA CITY, IOWA
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Project No.
Sheet_ of_ Date:
Prepared by: Scale: J
FIGURE TWO
... 1962 Recirculation
Piping Repairs
0 million No Data Available
For This Period
5 million 4.
1955 1960 V 1975 1900
ANIMAL WATER USAGE - CITY PARK POOL
IOWA ('TTY. IOWA
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City of Iowa City
MEMORANDUM
DAT11 July 2, 1985
TO: City Council
FROM., City Clerk
REs Initiative Ordinance
On June 27th an Affidavit To Commence Initiative Or Referendum
Proceedings was filed in the City Clerks office.
A copy of the proposed ordinance "The Nuclear Weapons Free
Iowa City Ordinance" is attached.
I am.also attaching the schedule that will need to be followed
to complete the process in the required time.
i
City of Iowa City
MEMORANDUM
DAT11 July 2, 1985
TO: City Council
FROM., City Clerk
REs Initiative Ordinance
On June 27th an Affidavit To Commence Initiative Or Referendum
Proceedings was filed in the City Clerks office.
A copy of the proposed ordinance "The Nuclear Weapons Free
Iowa City Ordinance" is attached.
I am.also attaching the schedule that will need to be followed
to complete the process in the required time.
THE NOCtMR WNiPONS FREE IOW1 CITI ONDIl1NCN
� Section 1- Name
This ordinance shall be known as •The Nuclear Weapons Free Iowa City
Ordinanoe.■
Section 2. Purpose
The purpose of this ordinance is to establish Iowa City as a nuclear weapons
free zone in which work on nuclear weapons is prohibited.
The people of Iowa City find that the presence of nuclear weapons facilities
within Iowa City is in direct conflict with the maintenance of the communityfs
public health, safety, morals, economic well-being, and general welfare.
Section 1. Prohibition of Nuclear Weapo • Vork
No person shall knowlingly engage in work, within Iowa City, the purpose of
which is the development, production, deployment, launching, maintenance or
storage of nuclear weapons or eomponenets of nuclear weapons.
Section 4. Definitioen
@Person" means a natural person, as well as a corporation, institution or
other entity.
"Nuclear Weapons is any device, the purpose of which Is use as a weapon, a
weapon prototype or a weapon test device, the intended detonation of which
results from the energy released by fission and/or fussion reactions involving
atomic nuclei. For the purposes of this Ordinance, @nuclear weapon" includes
the weapon's guidance, transportation, propulsion, triggering, and detonation
systems.
"Component of a nuclear weapon@ is any device, radioactive or
non -radioactive, designed to be installed in and contribute to the operation of a
nuclear weapon.
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THE NUCLEAR WEAPONS FREE IOWA CITI ORDINANCE -- 2
Section S. Notification
Upon adoption of this ordinance, the City Council of Iowa City shall
officially notify Iowa City's Congressional Representatives and Senators, the
President of the United States and the recognized leaders of the Soviet Union,
Great Britain, France, the People's Republic of China, India and any further
nuclear weapons states of the contents of this initiative.
In addition, the City Council of Iowa City shall instruct the appropriate
city officials to post signs on mayor entrances to Iowa City stating ■Nuclear
Weapons Free Zone* in a manner that conforms with standards set forth in the
Federal Highway Administration's Manual on Uniform Traffic Control novices for
States and HiaAways.
Section 6. Enforcement
Each violation of this Ordinance shall be punishable by up to 30 days
imprisonment and a $500 fine. Each day of violation shall be deemed a separate
violation.
Residents of Iowa City shall also have the right to enforce this Ordinance
by appropriate private civil actions for declaratory or injunctive relief.
Reasonable attorney fees shall be awarded to a prevailing plaintiff in such
litigation. -
Seotion7_ Sanrabili tv Claves - -
It Say section, sub-seotion, paragraph, sentence or word of this Act
shall be held to be invalid, either on its face or an applied, the
invalidity of such provision aball not affect the other sections,
sub-aaotions, paragraphs, sentences or words of this ordinance, and the
applications thereof; and to that end the sections, sub -sections,
paragraphs, sentences and words of this Ordinance shall be deemed to be
servable.
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INITIATIVE ORDINANCE SCHEDULE
July 15
- Petitions filed with City Clerk
August 5
- Certificate of Sufficiency sent
certified mail to the petitioners
(assuming 2500 signatures can be
certified on first submission)
August 9
- Certificate sent in Council packet
and motion setting public hearing
placed on agenda
August 13
- Council set public hearing for
September 10
Augsut 20
- Notice published
September 10
- Public hearing on ordinance
September 24
- 1st and 2nd considerations on ord-
inance waived and motion to adopt
voted on. If defeated, motion
made to have the ordinance placed
on the Novermber ballot.
September 26'
- City Clerk delivers petitions to
Commissioner of Elections as required
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MEMORANDUM
Date: July 1, 1985
To: Senior Center Commission
From: Bette Meisel, Senior Center Coordinate gj
Re: The Iowa Lottery
The City has always encouraged departments to find ways and means to increase
the revenue of their units. Additional funds are used to pay for existing
services or expanded services.
Now that Iowa has instituted a state lottery, an opportunity has presented
itself whereby the Senior Center may be in a position to increase its revenue
by selling Iowa lottery tickets.
I will be discussing details of this venture with you at our Commission
meeting on July 10. We may yet earn our volunteer specialist!
bjl/15
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Johnson County Council of Govemments
f% 410 E mshingtonSt. bAu City, bvvo 52240
Date: July 3, 1985
To: II��(V�'',,City Council & City Manager
From- John Lundell, Transportation Planner
Re: Dubuque Street Parking Ramp Expansion Project
As a result of previous City Council and Design Review Committee discussions,
the staff requested Hansen Lind Meyer to investigate what could be done to
improve the exterior aesthetics of the Dubuque Street Parking Ramp. We asked
HLM to explore facade treatments as well as landscaping alternatives.
It was determined that any modifications to the exterior of the ramp itself
would not be cost effective. Instead HLM recommended a landscaping plan
which will soften the ramp's exterior appearance. The Design Review Commit-
tee, Public Works, and City Forester reviewed and approved HLM's proposal.
Therefore, included in the recently awarded construction contract is the
planting of 15 trees along the east, south and west sides of the parking
ramp. In order to provide enough room for the trees along Burlington Street,
the existing sidewalk will be removed and shifted to the north. The trees
will be of sufficient size to comply with City and State trimming require-
ments.
In addition, as recommended by the Design Review Committee, interior direc-
tional signage is being revised in order to improve user understanding.
Thank you and do not hesitate to contact me with any questions or comments.
tp2/8
cc: Don Schmeiser
Karin Franklin
CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5CCO
July 3, 1985
Mr. Jackson Clubb
P. 0. Box 1027
Iowa City, Iowa 52244
Dear Mr. Clubb:
The City has received complaints about the location of the newspaper
vending machines which you recently placed on City Plaza. It would
be appreciated if you would move your vending machines to a location
where other newspaper vending machines are located. In addition,
it would be to your benefit to alleviate this negative public response.
Iowa Citians are very proud of the pedestrian mall and show concern
about its appearance. In fact, one of the goals of the ordinance which
governs City Plaza is "to make the City Plaza an active and attractive
pedestrian environment."
Your cooperation will be appreciated. If you have any questions,
Please contact me at 356-5010.
S iTcer!,Ir yours,
Neal G. Berlin
City Manager
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CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5CCO
July 3, 1985
Mr. Jackson Clubb
P. 0. Box 1027
Iowa City, Iowa 52244
Dear Mr. Clubb:
The City has received complaints about the location of the newspaper
vending machines which you recently placed on City Plaza. It would
be appreciated if you would move your vending machines to a location
where other newspaper vending machines are located. In addition,
it would be to your benefit to alleviate this negative public response.
Iowa Citians are very proud of the pedestrian mall and show concern
about its appearance. In fact, one of the goals of the ordinance which
governs City Plaza is "to make the City Plaza an active and attractive
pedestrian environment."
Your cooperation will be appreciated. If you have any questions,
Please contact me at 356-5010.
S iTcer!,Ir yours,
Neal G. Berlin
City Manager
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June 27, 1985
Retirement Housing Foundation
255 South Hill Street, Suite 407
Los Angeles, CA 90012
Gentlemen:
U.S. Department of Housing and Urban Development
Des Moines Office, Region VII
Federal Building
210 Walnut Street Room 259
Des Moines, Iowa 50309.2155
HECEIVEDJUL 5 1985
SUBJECT: 074-EH138-WAR-L8 (IA05-TB51-001); Mary 0. Coldren Manor -
Iowa City, Iowa
I am very sorry that I must inform you your application for Section
202/8 funding is no longer under consideration for funding.
Preliminary evaluation of your application has been completed. As
indicated in our Section 202 Application Package, Section II, page 15,
Item, #10, and in Notice H 85-9, page 17, there are nine threshold criteria
your application must comply with to be determined acceptable for technical
processing.
Unfortunately, your application did not meet Threshold Requirements #4
and 9 as they pertain to Borrower eligibility and an adequate market demand
for the unite proposed.
Our legal counsel found that the Retirement Housing Foundation has a
current IRS ruling as to tax exemption; however, the Co -Sponsor, Mary 0.
Coldren Home for the Aged Women, did not evidence such exemption. A letter
was submitted, dated April 25, 1985, addressed to the IRS requesting
evidence of tax exemption since the Co -Sponsor could not find evidence in
their files. A response to the Co -Sponsor's request to IRS did produce the
necessary evidence; however, it was not submitted until June 25, 1985, 42
days late.
Even though the above is a deficiency and we could have relied totally
on Retirement Housing Foundation as the Sponsor,i
th prmary reason your
\C\l application could not be considered further is because of a weakmarks in
1:512 Iowa City area. From a statist cal standpoint, our economist cou
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only recommen ceptance of 58 or lees units in the market area. A market
survey by our Valuation Branch substantiated the statistical findings and
in fact felt the 58 unit projection was optimistic at the site proposed.
Please remember that under current rules and guidelines occupancy is
restricted to the very low income; thus, prospective tenants are reduced in
numbers from that of past years due to the more stringent income
eligibility requirements.
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Please note that the foregoing deficiencies were determined at the
"Preliminary Evaluation" stage of processing and that the foregoing '
determinations were made from the application package submitted and from
readily available data. No field review or investigation was involved at
this stage of processing as such is reserved for the "technical" processing
stage.
Therefore, please be aware that continued processing may have revealed
additional deficiencies that were not evident at this stage and which may
have resulted in the application being determined unacceptable or may have
resulted in a low rating when ranked with other applications.
We are sorry we are unable to approve your application; however, we
thank you for your interest in the Section 202/8 Direct Loan and Rental
Assistance Program. If you have questions concerning the above, please
contact W. R. Van Vleet, Director of Housing Development, or Donna M.
Davis, Multifamily Housing Representative, at (515) 284-4736.
Sincerely,
Jerry L. Sauer
Manager
cc:
Mary 0. Coldren Home for Aged Women
Elmer E. Smith, Consultant
Kirk Hiland, Consultant
li}fayor John McDonald
Robert Burns, Architect
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Please note that the foregoing deficiencies were determined at the
"Preliminary Evaluation" stage of processing and that the foregoing '
determinations were made from the application package submitted and from
readily available data. No field review or investigation was involved at
this stage of processing as such is reserved for the "technical" processing
stage.
Therefore, please be aware that continued processing may have revealed
additional deficiencies that were not evident at this stage and which may
have resulted in the application being determined unacceptable or may have
resulted in a low rating when ranked with other applications.
We are sorry we are unable to approve your application; however, we
thank you for your interest in the Section 202/8 Direct Loan and Rental
Assistance Program. If you have questions concerning the above, please
contact W. R. Van Vleet, Director of Housing Development, or Donna M.
Davis, Multifamily Housing Representative, at (515) 284-4736.
Sincerely,
Jerry L. Sauer
Manager
cc:
Mary 0. Coldren Home for Aged Women
Elmer E. Smith, Consultant
Kirk Hiland, Consultant
li}fayor John McDonald
Robert Burns, Architect
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