HomeMy WebLinkAbout1984-04-10 Info PacketCity of Iowa City
MEMORANDUM
Date: April 5, 1984
To: City Council
From: City Manage����/
Re: Floodway Maps
Some time ago we wrote the Congressional delegation concerning delay in
receipt of floodway map approval. Enclosed'is a letter from Senator Grassley
and a response which he received from the Federal Emergency Management Agency
indicating that the City will receive, the preliminary map from the Federal
Emergency Management Agency during the month of April. If there should be no
appeal during the 90 -day appeal period, the Floodway may be legally adopted
by the City at the end of the appeals period. Therefore, the City joule
ould
begin using the new information in July. If you have any questions, p
contact me.
cc: Charles Schmadeke
Don Schmeiser
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CHARLES E. GRASSLEY
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135 H.mr SMAF( OFFICE B WLOIYe
WASHINGTON.O.0 20510
12021224-0744
March 23, 1984
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Mr. Neal G. Berlin, City Manager
410 E. Washington Street
Iowa City, Iowa 52240
Dear Neal: -
Attached is a copy of a letter I received from Jeffrey Bragg,
Administator, Federal Insurance Administration regarding Iowa
Cities floodway revision.
I hope this information will be of assistance to you.
If I or my.staff can be of further assistance please do
not hesitate to contact my office.
CEG/er
enclosure
Committee Assignments:
BUDGET
tABOn AND HUMAN
R°S0L'r-F.S
S14rles
erely,
C E. Grassley
United States Senator
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FINANCE
CHAIRMAN. Ov hl of IN Inw,N!
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JUDICIARY
CHAIRMAN. AEm IEEVM Pnnb
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Federal Emergency Management Agency
Washington, D.C. 20472
Honorable Charles E. Grassley
United States Senate
Washington, D.C. 20510
Dear Senator Grassley:
This is in response to your letter of February 15, 1984, to
Louis 0. Giuffrida, Director,. Federal Emergency Management Agency
(FEMA), concerning the length of time required to process the
Iowa City, Iowa floodway revision.
The city's statement that eleven to thirteen months from the date
of submission are required before a floodway revision becomes
effective is somewhat misleading. The scientific and technical -
data necessary for processing the map revisions for Iowa City were
received by FEMA during December 1983. A preliminary map of the
revised floodway will be sent to the community during -April 1984.
Since base flood elevations will be changed by this revision, the
statutory 90 -day appeals period must be invoked. If there are
no appeals, the new floodway may be legally adopted by the
community at the end of the appeals period. Thus, the community
may begin utilizing the new floodway data as early as July 1984
if it is not appealed.
In the event that an appeal is made, finalization of the revised
flood elevations and floodway will be delayed until the appeal is
resolved. A six month period is allowed for printing and
distributing revised flood maps before they become effective.
However, this period does not preclude the community's use of
the new information once all appeals have been resolved.
If we may be of further assistance in this matter, please have a
member of your staff contact the Office of Congressional Relations
at 287-0400.
Sincerely,
g�G��EG
Jeffrey S. Bragg
Administrator
Federal Insurance Administration
467,01
City of Iowa City
MEMORANDUM
DATE: April 2, 1984
TO: All Department Heads, HUS Staff
FROM: City Manager - �'/ -
RE: Acting Director (H&IS) and Building Official
In the absence of a permanent director of Housing and Inspection Services,
Mr. Lyle Seydel will serve as the Acting Director of Housing and Inspection
Services. Mr. Richard Frantz has been appointed Chief Building Inspector
and will serve as Acting Building Official until the new department head
is appointed. Your cooperation will be appreciated.
cc: Lyle Seydel
Richard Frantz
City Council
� 77
CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHNGTON ST. IOWA CIP IOWA. 52240 (319) 356-5000
April 4, 1984
PRESS RELEASE
Richard Frantz has been permanently appointed Senior Building Inspector
for the City of Iowa City. Mr. Frantz has been serving as acting Senior
Building Inspector since the resignation of Glenn Siders. Mr. Frantz
will also serve as acting Building Official.
Mr. Frantz is a graduate of Iowa City Regina High School. He was
employed in the construction field in the Iowa City area prior to
joining the City in April, 1978 as a building inspector.
bj3/6
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JEAN LLOYD -JONES ASSISTANTMAJORITY LEADER
'TATE REPRESSNTATI I'E
7 11
Forty -Sixth District _ COMMITTEES
Lerv,laDye Council
HOMEADDRESSt Local Government
1600akndae Avenue Ouse Ul EeprIsenta tues Rules and Administration
10W'A CITT. IOWA =0 State Government
5......100, lir•nrrol.,I.n dy Tranaporuuun
SESSION ADDRESS Currectlolm Menta Health
STATE HOOSE Appropriations Subrommittea
DES MOINES. IOWA W319
April 2, 1984
John McDonald, Mayor
City of Iowa City
410 Washington St.
Iowa City, Iowa 52240
Dear Mr. McDonald:
Your letter of March 29th reached my desk today. I appre-
ciate your attempt to communicate with me but unfortunately most
of the items you mentioned have already passed.
With regard to Senate File 2228, the bill to prohibit cities
from adopting zoning ordinances which would discriminate against
manufactured housing solely on the basis that it is manufactured
housing, I chaired the subcommittee to which it was assigned. I
held several meetings of the subcommittee and talked to Don
Schmeiser about the bill, he assured me that the bill would cause
no problem for Iowa City; that in fact, Iowa City had proposed a
zoning ordinance to allow for such housing. However, the lobbyist
for the League of Municipalities was strongly opposed to the bill,
thus we made no attempt to pass it out of local government committee.
When the Senate passed the bill and sent it to the House I
opted not to chair the subcommittee. I voted against the bill in
committee and when it reached the floor.
House File 2487 regarding comparative negligence passed the
House March 20th'on a vote of 75 to 21. I voted in favor of it
because the bill as amended allowed for pure fault and abolished
the doctrine of joint and several liability. If the Senate passes
it in the same form, we would have an ideal situation. An indi-
vidual would be able to recover damages to the extent that the
other party was at fault. Without the doctrine of joint and seve-
ral liability, there would be no such thing as "deep pocket."
House File 2392 passed the House on March 13th by a vote of
56 to 42. I voted in favor of this because I had not heard any
opposition to it.
FORTY-SIXTH DISTRICT
Ildls: Unnervty Ileiehte:
In.a Cily Prtnneu 1.11. IN
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' John McDonald Page two
Senate File 2220 passed the House March 28th on a vote of
94 to 2. I also voted for this bill. There was a House amend-
ment to S.F. 2220 by the committee on small business and commerce
that allows for chapter 454 to not be repealed until July 1, 1985
if the pledging to secure the deposit of public funds has not
been properly completed by July 1, 1984.
I
Concerning Senate File 2230 in talking with the Majority
Leader about this legislation I was told that it would not cause
any problem for cities. Also, I support House File 2460 which
increases the tax levy for a municipal transit system.., -
Let's stay in close communication as things happen quickly
these last few weeks of the session.
Sincerely,
9t Pd- on s
Jean Lloyd -Jones
State Representative
I •
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City of Iowa City
MEMORANDUM
DATE: April 5, 1984
TO: City Council
FROM:
Robert W. Jansen, City Attorney
RE: Old Library and Parking Lot Redevelopment Contract
I am forwarding to the Council a proposed written amendment to
the development agreement which extends the time for conveyance
of the parking lot site from March 10, 1984 to January 10, 1985.
You will recall that the developer asked for an additional period
of one year before being required to take title to the site. I
have computed the one year period to run from January 10th of
this year since that is the date of the written notice the GWG
delivered to the City as its intent to exercise the option to
purchase the site. You will also recall that GWG did tender a
check in the amount of $20,500.00 as required by the agreement
and this amount is being held by the City.
The commitment required in the agreement to expend 3008 of the
purchase price of $165,000.00 for the library site itself has
also been dealt with in the amendment. This simply states that
the City is accepting the amount expended so far as satisfaction
of that requirement and is not requiring further expenditures to
equal the 3008 figure.
The proposed amendment is submitted to you for your consideration
and discussion and is a draft only in the event`that the Council
wishes any changes made.
jb
Enc.
cc: City Manager
Andrea Hauer
Atty. John Cruise
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AMENDMENT TO AGREEMENT
OFFER TO PURCHASE --OLD PUBLIC LIBRARY AND PARKING LOT
WHEREAS, GWG Investments, an Iowa General Partnership and
the City of Iowa City, Iowa, have executed an Offer to Purchase
Agreement for the development of the Old Public Library and the
parking lot, said Agreement having been executed January 18,
1983, by the parties; and
WHEREAS, the Agreement grants to the Buyer an option to
purchase the parking lot site within twelve (12) months from the
date of the Agreement and that the Buyer has delivered written
notice to the Seller that it intends to exercise the option, said
notice having been dated January 10, 1984, and the Agreement
further requires that the Seller convey the parking lot site
within sixty (60) days after receipt of said notice; and
WHEREAS, the Agreement requires the Buyer to develop or
redevelop the Old Library building and to expend improvements on
same in an amount no less than Three Hundred percent (3008) of
the Buyer's bid price of One Hundred Sixty -Five Thousand Dollars
($165,000.00); and
WHEREAS, certain matters have now arisen which require a
change in the aforesaid conditions and the parties hereby desire
to amend the Agreement to reflect those changes; and
IT IS THEREFORE AGREED AS FOLLOWS:
1. That Paragraph 8 of the Agreement is hereby amended to
provide that the Seller shall convey title to the parking lot
site no later than January 10, 1985.
2. That the Buyer has now expended certain sums upon the
Old Library building for improvement of same, but that said sums
o
are not equal to the 3008 requirement contained in the Agreement,
but that the Seller agrees to accept the improvements made to
date in fulfillment of this requirement and shall require no
further expenditures to be made in satisfaction of that
requirement.
3. The Agreement originally executed between the parties on
January 18, 1983, is hereby ratified and confirmed in all other
respects.
FOR BUYER: FOR SELLER:
GWG INVESTMENTS, an Iowa CITY OF IOWA CITY, IOWA
General Partnership
Bruce R. Glasgow
Alan J. Wolfe
Joseph W. Glasgow
General Partners
834 N. Johnson Street
Iowa City, Iowa 52240
John McDonald, Mayor
Marian K. Karr, City Clerk
6 Fo
RESOUTION AUTHORIZING AMENDMENT TO THE AGREEMENT WITH
GWG INVESTMENTS FOR LOTS 1, 2, 3, AND 4, BLOCK 63,
ORIGINAL TOWN (THE OLD PUBLIC LIBRARY AND ADJACENT
PARKING LOT).
WHEREAS, the City of Iowa City did by Resolution 83-13
authorize the execution of an agreement to purchase the
Old Public Library and the adjacent parking lot for
private development; and
WHEREAS, said agreement was duly executed and contained
certain provisions which the City of Iowa City and GWG
Investments wish to modify by an amendment to said
iagreement; and
WHEREAS, the City of Iowa City deems it to be in the best
interest of the City to enter into an amendment to -the
agreement to reflect certain changes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
IOWA CITY, IOWA: that the Mayor is authorized to sign
and the City Clerk to attest the amendments to the
agreement known as the Offer to Purchase --Old Public
Library and Parking Lot.
It was moved by and seconded by
the Resolution be adopted, and upon
roll ca t ere were:
AYES: NAYS: ABSENT:
_ Ambrisco
Baker
— Dickson
Erdahl
_ McDonald
Strait
Zuber
Passed and approved this day of 1964.
MAYOR
ATTEST:
CITY CLERK
Received & Approved
By The Legal Department
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City of Iowa City
MEMORANDUM
Date:
April
5, 1984
To:
heal
Berlin and
City Council
From:
Chuck
Schmadeke
Re:
Sewer
Collection
System - Rehabilitation Program
The sewer collection system rehabilitation program is intended to eliminate
sources of infiltration and inflow where it is cost effective to perform the
necessary repair work. The program is divided into two construction pro-
jects. One projects consists of the reconstruction and replacement of
structurally defective sewers and removing storm sewers and inlets from the
sanitary sewer system. The other project consists of leaky manhole repair;
installing water -tight manhole lids, and replacing short sections of cracked
and leaky pipe. The cost of these projects are $805,000 and $168,100,
respectively.
The benefit derived from this work is a reduction in the total volume of flow
transported to and treated at the wastewater treatment plant. The total
reduction in volume of water transported and treated from the proposed
rehabilitation work is 18 million gallons per year. In addition the Univer-
sity of Iowa is removing 7 million gallons per year from the sewer system.
The total 25 million gallons removed from the system represents a 7% reduc-
tion in the total infiltration and inflow volume of 353 million gallons per
year.
This reduction in flow is measured at the waste water treatment plant and may
or may not have a significant effect on a particular trunk sewer or intercep-
tor sewer. In addition, the peak storm water flow condition, which 'is the
cause of this additional flow, is estimated to occur approximately 17 hours
per year; whereas, peak domestic sewage flows are estimated to occur twice a
day or approximately 730 hours per year.
bj4/6
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City of Iowa City
MEMORANDUM
Date: April 4, 1984
To: The Honorable Mayor and City Council
From: James Brachtel, Traffic Engineer
Re: Taxicab Stands
Recently the three taxicab companies operating in Iowa City either renewed
their existing taxicab stand permit or applied for a new taxicab stand
permit. These requests brought to light two areas which the City Council
may wish to consider.
FEES FOR TAXICAB STANDS
The fee currently being charged by the City is $150 per year. This fee
was first established in July of 1968. Since that time fees for parking
meters have increased in.the downtown. The current meter fee in the area
is $.10 per hour. I would suggest that the City Council consider increas-
ing the amount of annual rental fee for each permit stall. I would suggest
that the permit fee be increased to $225 per year. This rental fee
increase is based upon an income potential of 10 cents per hour x 8 hours
per day x 6 days per week x 52 weeks per year with an assumed occupancy of
90%. The Parking Systems Division reports that this occupancy rate
reflects current use of the parking meters in the area.
If the City Council would choose to adopt this new permit fee, it could be
put into effect in March of 1985 when the current permit for taxicab
stands are due to be renewed.
DESIGNATION OF RENTED STALLS FOR TAXICAB STANDS
Occasionally the various taxicab companies have difficulty in identifying
which of the permit stalls have been rented and designated for their cab
company. Drivers of the three cab companies occasionally use a permit
stall for another taxicab company. One easy method to resolve this
confusion would be the addition of the taxicab company's name to the NO
PARKING TAXICAB STAND signs in a discreet manner so that the cab companies
could readily determine which permit stand has been reserved for which
taxicab company. I would anticipate the City adding the taxicab company's
name in one inch high letters to the bottom of the sign.
This marking could be interpreted as advertising and therefore an inappro-
priate use of City signs. However, the size of the marking would be small
and discreet. If the City Council does not have concerns regarding the
placing of company names on public signs I would recommend that the taxi
cab company names be added td the signs.
Should you require additional information or have questions I would be
most happy to respond.
bdw5/6
Y
City of Iowa City
MEMORANDUM
Date: April 5, 1984
To: City Council
From: Lyle Seydel, Acting Director, Housing C Inspection Services
Re: Congregate Housing
The attached memorandum provides a general outline of the current status
and direction being pursued by staff.
A contract has been let with Bob Burns and Associates to produce a Project
Development and Implementation Schedule. The contract calls for submis-
sion of this document on or before May 2, 1984 and is considered the first
phase in preparing for the development of a Request for Proposals (RFP).
The Project Development and Implementation Schedule will define tasks,
estimate times for completion, assign target dates and provide a Critical
Path Method (CPM) diagram of tasks.
Following receipt of the input from Burns and formulation of a more
definitive plan,' the Housing Commission will meet with Council for
approval and/or direction.
bc4
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City of Iowa City
h MEMORANDUM
Date: March 19, 1984
To: Members of the Housing Commission and the City Council
From: Lyle Seydel
James Hencin
Michael Kucharzak
Re: Congregate Housing
For a number of years the City Council and the Housing Commission have had
as one of their performance goals the establishment of congregate housing
as a means of bridging the gap between independent living and nursing home
care. Each budget year we progressed closer tothe goal of establishing
options for elderly residents so as to avoid. premature institutional-
ization and preserve the quality of life for our older citizens.. This
year, FY84, we have budgeted significant CDBG monies to attract the
attention of private developers and sponsors such that the hope of having
a congregate housing complex for tenants in Iowa City is a distinct possi-
bility this calendar year.
With nearly $400,000 of housing money that could be utilized for congre-
gate housing, the staff recommends to the Housing Commission' and the City
Council that a request for proposal (RFP) package be developed to attract
sponsors, developers, builders and financial institutions willing to join
forces in order to compete for the privilege of building congregate
housing utilizing CDBG money.
We recommend that the City consider loaning the money to private develop-
ers and/or private not for profit sponsors to build a congregate housing
facility. The term of the loan, the interest rate and the amount of money
made available would depend on the developer's response to measurable
Items in a request for proposals submission. It is expected that such
items as density, amenities, mix of low, moderate and upper income
peoples, management plan and services, as well as other criteria will be
evaluated and weighed against other competing proposals in order to
recommend the financial assistance participation.
The staff further recommends that the Housing Commission and the City
Manager consider contracting with a private architect to serve as consult-
ant to the City and interested elderly services provider organizations in
developing a request for proposal packet as well as follow through
assistance in evaluating proposals submitted by private individuals and
organizations.
Given proper attention by staff,
Council, we believe a financial
developer could be completed this
calendar year.
bdw/sp
the Housing Commission and the City
agreement with a congregate housing
summer with construction commencing this
6f3
City of Iowa City
MEMORANDUM
DATE: April 2, 1984
TO: Iowa City City Council
FROM: City Clerk Marian K. Karr
RE: Chez Andre - Sunday Sales
Conditional approval was given at the 9/27/83 Council
meeting to Chez Andre, 1200 S. Gilbert Court, for
Sunday Sales/Liquor permit. At their request and due
to the fact that they did not.meet the 50t requirement
to stay open on Sundays, their Sunday Sales was
canceled as of December 11, 1983.
lie have received a letter from Chez Andre stating that
their gross receipts were reported to us incorrectly.
Due to this correction, Chez Andre meets the 50%
requirement and therefore will reopen on Sundays only
for special occasion banquets.
6 IFT
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City of Iowa City
MEMORANDUM
DATE: April 6, 1984
TO: City Council and all Departments
FROM: City Clerk lt+,
RE: Absence
I will be out of town on vacation from April 12-20. Deputy Clerk
Ramona Parrott can be contacted with any questions.
0
Johnson County Council of Governments
�410EVvtr^,ngtcnSt. 6AaGty,brnA52240
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Date: April 5, 1984
To: Iowa City City Council and City Manager
Fromohn Lundell, Transportation Planner
Re: FAUS Funds
On March 28, the JCCOG Board of Directors discussed the Federal Aid Urban
System (FAUS) program. Iowa City Councilmembers present at this discussion
were Bill Ambrisco, Larry Baker and George Strait. They requested a discussion
of this subject at an informal meeting of the City Council as soon as possible.
For the benefit of all Councilmembers, I will attempt to describe the funding
mechanism of this program. The Iowa City Urbanized Area receives an annual
allocation of FAUS funds from the Iowa DOT based on the total area population.
The JCCOG Board, which has responsibility for distributing these funds
locally, has adopted a formula which distributes them to Iowa City, Coralville
and University Heights based on each community's percentage of the total
i urbanized area population. This works out to Iowa City receiving 85.2%,
Coralville 13.0% and University Heights 1.8%.
Another provision of the.FAUS program allows each urban area to borrow ahead up
to two years of their annual allocation. In the past both Iowa City and
Coralville have taken advantage of this provision which permits a community to
implement a project more quickly by not having to wait two years for additional
funds to accumulate. This borrowing ahead mechanism is slightly more complex
now that we are viewed as one urbanized area as opposed to separate communi-
ties. What will happen now is if Coralville or Iowa City wishes to borrow
ahead, the entire urbanized area's balance of FAUS funds must be depleted
before going to the Iowa DOT to request additional monies. In other words, now
that Coralville is anticipating borrowing ahead two years of their allocation
for a pedestrian crossing project over Interstate 80, they will actually be
borrowing from Iowa City's portion of this area's total amount of FAUS funds.
This in no way places Iowa City's portion of FAUS funds in jeopardy since if
the urban area's balance of funds is depleted, Iowa City then would borrow
ahead from the Iowa DOT balance of unobligated funds. In the history of the
FAUS program, the Iowa DOT has never been close to running out of unobligated
FAUS funds. Presently there is an unobligated balance of approximately $12
million statewide.
Hopefully this memo will clear up any confusion with how the FAUS program
operates now that we are an urbanized area. I will be in attendance at the
Council's informal meeting on April 9, 1984, to answer any further questions.
Thank you.
cc: Don Schmeiser, JCCOG Director
Mike Kattchee, Mayor of Coralville
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Johnson County Council of Governments
410E%bTira[onSc. oCity,bwa52240
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fan
/ MEMORANDUM
April 2, 1984
TO: Don Schmeiser
FROM: Cheryl Mintl'e_jjN\.
RE: Council Questions regarding Mayor's Youth Employment
1. Name Change
Last year after the budget hearings, the Council asked Mayor's
Youth to consider taking "Mayor's" out of their name. They
discussed this at two Board meetings (minutes attached) and
determined that since they had had this name since 1968 a name
change could be detrimental to their identity and might con-
fuse the public. They felt this even more so because CETA was
changing their name at this time and this was causing a great'
deal of confusion. Other examples of negative impact were
shared by Board members. It was finally determined that unless
the "funding sources seriously request a name change, MYEP will
stay the same." Therefore, unless the Council really wants to
push this issue, the name will stay the same.
2. School Board Representation on Board of Directors
Peg McElroy's memo of December 15, 1983, appears to be accurate
(attached). The present Mayor's Youth By -Laws do not now require
a Board of Education representative. Members of the Board of
Education felt they could not serve at this time due to being
over extended, rather than from any negative feelings regarding
MYEP. Therefore, MYEP is planning to propose a faculty member
of the Community Education Center (CEC), the alternative high
school, for representation from the education community. Since MYEP
board members must be appointed by the Council with approval by
the Mayor, they are asking for Council approval.
d, �?%
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City of Iowa City
MEMORANDUM
Date: April 6, 1984
To:
Mayor McDonald and Iowa
City
Council Members
From:
Margaret Nowysz, Chair,
Iowa
City Historic Preservation Commission
Re: National Historic Preservation Week
The week of May 13 to 19 has been designated National Historic Preserva-
tion Week and is expected to be observed by more than 5,000 preservation
and neighborhood organizations nationwide. The theme of the week is
"Preservation is Taking Care of America. The purpose of recognizing
historic preservation activities is to make the public aware of the
important contribution historic buildings are making to the prosperity of
America's cities and towns and particularly how quality rehabilitation and
maintenance are the keys to preserving historic buildings.
The Iowa City Historic Preservation Commission is requesting that the City
Council, at its May 8, 1984, meeting, pass a resolution proclaiming May
13-19, 1984, as Preservation Week and calling upon Iowa City residents to
recognize this special observance.
In addition, the Iowa City Historic Preservation Commission proposes,
during National Historic Preservation Week, to recognize an individual who
has sensitively completed historic preservation projects. The Commission
requests that the City Council acknowledge this individual's efforts to
preserve historic structures by presenting him/her with a plaque at the
May 22, 1984, Council meeting.
As National Historic Preservation Week approaches, you will receive
additional information regarding these requests.
bdw4/5
cc: Don Schmeiser, Director, PPD
Jim Hencin, CDBG Coordinator
!�L
CITY OF IOWA CITY
CIVIC CEN(ER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-5CCO
April 5, 1984
Mr. Dan Hudson
Iowa City Assessor
Johnson County Courthouse
P. 0. Box 1546
Iowa City, Iowa 52244
Dear Dan:
This is in reply to your letter of March 21st. You have
requested my opinion as to whether extensions built onto
businesses fronting on City Plaza would become subject to tax.
You state in your letter that, "I have read about the possibility
of businesses fronting on the pedestrian plaza being allowed to
build on the plaza. I feel that if this land is built upon, it
would no longer be devoted to public use and would become taxable.
If this is the case, the lease fees might need to reflect any
I taxes due." You then point out as an example of city owned
property the Union Bus Depot located at 404 E. College Street
which is taxable. I agree with your conclusion.
The applicable statute is Chapter 427.1(2) of the Iowa Code.
This chapter of the Code designates certain classes of property
that are exempt from real property taxation. Accordingly, city -
owned property is classified as exempt when devoted toup blic use
and not held for pecuniaryrp ofit. (EmRpasis Supp ieed).
The type of structures proposed to be constructed by
property owners.fronting on the plaza are recognized in the City
Code (Chap. 91.) as building extensions to the plaza. The
ordinance permits permanent construction directly attached to an
existing building. Structures may extend up to 10 feet into the
city -owned pedestrian walkway.
As stated, the statute requires that two conditions must
exist to qualify for exemption. First, the city -owned property
must be "devoted to public use". Such is not the case here.
Leasing public pedestrian right-of-way to private persons for
commercial purposes as in the case of building extensions does
not meet this condition. The second condition that must be met
is that the public property not be held for pecuniary profit.
Although rather nominal, rents will be paid to the City for use
of the public space and the colleciton of rentals cannot be said
to be a mere incident of the public use. In the case of City of
� �9
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Dan Hudson
April 5, 1984
Page 2
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Osceola v. Board of Equalization, 188 Iowa 278, 176 N.W. 284, the
Iowa Supreme Court dealt with a similar issue. Land surrounding
an artificial lake which was part of the city's waterworks was
seeded to prevent erosion and the grass land was rented out for
pasturage. The Court held that the land was exempt as devoted to
public use (preserving the lake from soil washing into it) and the
fact that rents were collected was a mere incident to the public
use of preservation of the lake. In the present situation the
land being rented is not for public use and the rents to be paid
are thus not incident to any public use at all.
As you know, tax exemption is the exception and not the
rule. Tax exemption statutes are strictly construed with any
doubt resolved in favor of taxation and against exemption.
Parshall Christian Order v. Board of Review, 315 N.W. 2d 798
(1982); Iowa Methodist Hospital v. Board of Review, 252 N.W. 2d
390 (1977
Since this issue has now been raised, I am asking Planning
Staff to contact you for an estimate of the tax assessments that
might be indicated in order to ensure that lease fees reflect any
taxes that may become due.
Very truly yours,
A
Robert W. Jansen
City Attorney
RWJ:jb
cc: City Manager
Assistant City Manager
Andrea Hauer
City Council
191"ere
r
MINUTES
DOWNTOWN IOWA CITY PARKING STUDY PRE-BID CONFERENCE
MONDAY, APRIL 2, 1984 - 10:00 A.M.
CITY MANAGER'S CONFERENCE ROOM
IOWA CITY CIVIC CENTER.
ATTENDEES: Jerry Riebe, Shive-Hattery, Iowa City
Gerald Brickell, Johnson, Brickell, Mulcahey, Des Moines
Gilbert A. Janes, Howard R. Green Co., Cedar Rapids
John L. Holm, Metro Transportation Group, Bloomingdale, IL
Steve A. Salter, Barton-Aschman Assoc., Inc., Evanston, IL
Roy Neumann, Neumann Monson Architects, Iowa City
David C. Rae, Hansen, Lind, Meyer, Iowa City
Lois E. James, Hansen, Lind, Meyer, Iowa City
Linda Lundquist, Veenstra & Kimn, Inc., Iowa City
Scott Olson, Olson, Popa, Novak, Marion, IA
Bill Arons, Walker Parking Consultants, Minneapolis, MN
Steven J. Eaton, Brice Petrides & Assoc., Waterloo
'Robert L. Lentz, Brice Petrides & Assoc., Waterloo
Patrick M. Olson, Brice Petrides & Assoc., Waterloo
Jack C. Miller, Jack C. Miller & Assoc., Cedar Rapids
STAFF PRESENT: Neal Berlin, City Manager
Dale Helling, Assistant City Manager
Rosemary Vitosh, Director of Finance
Chuck Schmadeke, Director of Public Works
Joe Fowler, Superintendent of Parking Systems
John Lundell, Transportation Planner
Jeff Davidson, Assistant Transportation Planner
Lundell introduced the City staff: He indicated all of the staff present
will be involved in the study, as well as the local Chamber of Commerce.
Lundell briefly described the various facets of the proposed project,
including: examination of the circulation problem in the Capitol Street
ramp (900 spaces). Any restriping the consultant might propose will be
done in conjunction with an upcoming re -sealing project at this ramp.
Unlike the Capitol Street ramp, the Dubuque Street ramp (450 spaces) is of
poured in place construction. The Dubuque Street ramp was built with the
capacity for additional levels to be added. However, the consultant will
need to structurally evaluate the Dubuque Street ramp and determine if
additional levels can be added. The consultant should evaluate if more
than two levels can be added. The City will supply as -built drawings of
the Dubuque Street ramp. The consultant should also examine the effect
additional levels will have on circulation in and around the Dubuque
Street ramp. The consultant should evaluate the potential for an exit
spiral which would extend into Parcel 64-1a, and a new exit onto Linn Street.
The consultant should prepare a schematic design of proposed improvements
to the Dubuque Street ramp. The City is very concerned about aesthetic
considerations. Construction scheduling is of utmost importance, -in
conjunction with the adjacent hotel project. The consultant will prepare
a construction schedule and construction cost estimate. The potential for
a mixed use facility on Parcel 64-1a should be evaluated. The potential
for mixed use on Parcel 64-1a is being considered in this phase of the
MINUTES
DOWNTOWN IOWA CITY PARKING STUDY PRE-BID CONFERENCE
MONDAY, APRIL 2, 1984 - 10:00 A.M.
PAGE 2
project to ensure continuity with the proposed improvements to the Dubuque
Street ramp. This also applies to the potential for a facility which
would extend from the Dubuque Street ramp across Burlington Street.
Upon approval from the City staff and City Council, the consultant would
be asked to prepare detailed design drawings. The consultant will not
have primary inspection responsibilities of construction, but will be
involved in the construction phase. Another important aspect to the
project will be designing a program to finance the proposed improvements.
The consultant will work with the City's Finance Department regarding this
matter. The consultant will also prepare a final report documenting the
entire project. Minimizing disruption to the existing ramp during the
construction of additional levels will be an important consideration. The
City is very concerned that this project move along quickly..
Vitosh discussed the City's parking agreement with the adjacent hotel.
Parking will be available for hotel guests in both the Capitol Street and
Dubuque Street ramps. The Dubuque Street ramp is intended to be used by
registered guests and restaurant patrons. The fee paid by the hotel for
provision of parking will be as follows: a base fee calculated at 100
spaces X the current rate charged by the City for parking. In addition,
the hotel will reimburse the City at year end for parking used above this
amount. There will be no provision for employee parking in the Dubuque
Street ramp. There are currently 180 parking permits in the Dubuque Street
ramp, which may have to be moved if demand from the hotel is higher than
expected. A validation system for hotel guests has not been worked out at
this time.
Lundell outlined what Part 2 of the Parking Study will consist of. This
was done only for the benefit of those in attendance, and will not impact
the first part of the study. The second part of the study will be a
comprehensive look at the parking situation in the Iowa City CBD. A very
important aspect of Part 2 will be working with the University and the Uni
versity's parking consultant. City staff will perform much of this part
of the study. The consultant will be retained specifically for the site
evaluation and design phase if it is determined that a third parking
facility is needed.
The consultant will be selected based on the questionnaire in the RFP.
Each of the City staffinembers in attendance will evaluate the proposals.
The top 3-5 firms will receive interviews. The City Manager will then
recommend a selection to the City Council.
The criteria for evaluating the proposals will not be revealed.
Berlin reiterated that timetable is of utmost importance. It appears the
new hotel will open ahead of schedule. The evaluation of a possible mixed
use facility on Parcel 64-1a will also be of utmost importance.
The new hotel may open in early September.
Information on ramp utilization for the current year will be made avail-
able to the selected consultant.
MINUTES
DOWNTOWN IOWA CITY PARKING STUDY PRE-BID CONFERENCE
MONDAY, APRIL 2, 1984 - 10:00 A.M.
PAGE 3
Berlin stated the City hopes to come to a decision immediately on adding
additional levels to the Dubuque Street ramp. Following this they
will evaluate the possibilities for a mixed use facility on Parcel 64-1a,
extending the Dubuque Street ramp over Burlington Street, or other
proposals.
Transit usage to the Iowa City CBD is already high and expected to
increase.
The proposals should only address Part I of the proposed study.
The University anticipates having their parking study finished in July.
There is essentially no stated development preference for Parcel 64-1a.
Although the City initially anticipated a department store on this parcel,
that idea no longer appears feasible.
Submitted by:
�'etf Davidson.
MINUTES OF STAFF MEETING
March 7, 1984
Items for the agenda of March 13, 1984, include:
Resolution reclassifying two transit positions.
Set public hearing on rezoning of 524 North Johnson from P to RM -12.
Set public hearing on rezoning of 30 North Clinton from P to RM145.
Recommendation from the Planning and Zoning Commission regarding rezoning
of 20 acres in Johnson County
Resolution approving the preliminary plat of Pepperwood Addition.
Public hearing on an ordinance to vacate a public highway easement
. along Mormon Trek.
Second consideration of an ordinance amending planned development
plan or Orchard Court.
First consideration of an ordinance to include land annexed since
1981 in Iowa City precincts.
Resolution to establish a committee as suggested by Project GREEN.
Public hearing on lease of airport land to the school district.
Resolution authorizing an agreement with MMS Consultants for inspection
services for the Camp Cardinal Road Bridge project.
Resolution naming a street Willow Creek Court
Mr. Tim Shields of the Institute of Public Affairs met with the department
heads as a follow up to meeting held several months ago.
Pre ared by:
Lorraine Saeger 0
Regular Council Meeting
March 13, 1984 . DEPARTMENT REFERRALS
SUBJECT
DATE
RECO
REFERRED
To
DATE
DUE
COMMENTS/STATUS
Housing Survey
3-13
PBPD
Re: Conmwnity Development Plan -
Can info on rental policies re.
dependents, etc., be obtained?
Informal Council Meeting
March 12, 1984
Urban Environment Ad Hoc Committee
3-12
Lorraine
Include on 3-27-84 agenda.
Regular Council Meeting
March 13, 1984
DEPARTMENT
REFERRALS
C�
SUBJECT
DATE
RECD
REFERRED
TO
DATE
DUE
OOMMENTS/STATUS
PAD Orchard Court
3-13
PBPD
Lots 7 and 8 - Passed and
Adopted.
Public Hearing on Parts 2 and 3
Hunters Run Subdivision
3-13
P4PD/
set for April 10 at 7:30 P.M.
Lorraine
Re. downzoning to the west of Weeber
Weeber Street Area Request
3-13
PBPD
refer to Planning and Zoning Conim.
Strongly recomnend compliance with
Rezoning of Wolfe Property
3-13
PBPD
urban design standards.
Weeber Street.
3-13
Public Work
Why are there no sidewalks on
11
1
Weeber?
Jeff Romine Letter
3-13
PUD
Provide letter and inforniation to
CCN.
What are these ads for as reflected
Payment for Radio Ads
3-13
Finance
in January disbursements?
Informal Agenda
3-13
Assistant C
ty Manag
r
Schedule discussion - Council actions
when member(s) missing - ASAP
CCN Bylaws 113-13
11
Clerk
Referred to Rules Conunittee.
C�
I
MINUTES OF STAFF MEETING
March 21, 1984
Items for the agenda of March 27, 1984, include:
Resolution awarding contract for Camp Cardinal bridge.
Resolution authorizing an agreement with WAWM for funding of Step
1 work (sewer study) of the waste water treatment facility. The
Public 'Works Director is to explain this resolution in a memo
or comment.
Set public hearing on rezoning of 524 North Johnson from P to RM -12.
Set public hearing to amend the Zoning Ordinance to permit private
schools in the RM -12 zone.
Set public hearing on the rezoning of 3.52 acres east of First Avenue
extended from ID -RS to RS -5.
Hold public hearing on amended planned development housing plan of
McBride Addition, Part 2.
Hold public hearing on an ordinance to amend off-street parking design
standards.
First consideration of an ordinance vacating a public highway easement
along Mormon Trek Boulevard realigned.
Second consideration of an ordinance amending chapter 10.35 to include
land annexed since 1981 in Iowa City precincts.
Appointments to Housing Commission and Mayor's Youth Employment Board.
Public hearing on resolution authorizing execution of an amended access
easement for the hotel.
Resolution adopting Supplement 12 to the Code of Ordinances.
Resolution to approve contract with police labor organization.
The Assistant City Manager asked the department heads to remind the staff of
the necessity of keeping the building secure. The Police and Fire staff still
occasionally find a door unlocked after 5:00 P.M.
The City Manager advised that John Lundell of the JCCOG staff is putting
together work projects for the next year. He is interested in knowing of
any specific problems areas which affect the City generally. This could
include transit routes, traffic signal problems, bike paths, etc. The
staff is to inform the City Manager or John Lundell of any problems.
The Human Rights Ordinance and an article from the Press -Citizen had been
distributed to the staff. Phyllis Williams was present at the staff meeting
to answer any questions or comments from the department heads. The City Manager
advised that an ad hoc committee is being formed to be co-chaired by the
chairman of the Human -Rights Commission, Sue Futrell, and the chairman of
the Housing Commission, Fred Krause. The committee is to deal with the
proposal which concerns discrimination against people who have children.
The City Manager.invited the comments of the staff.
Prepared by:
C:Zu a �_ ZZ
Lorraine Saeger
6 9/
Informal Counci
March 20, 1984
Liquor Licer
Beer Gardem
City Plaza L
Forestry Pla
Consultant S
Informal Dis
Private Club
Reclassifica
Informal Counci
March 20, 1984
Page 2
St
Human Rights Or
Annual Audit
Zuber absent
I
MINUTES OF STAFF MEETING '
MARCH 28, 1984
i
Referrals from the informal and formal Council meetings of March 26 and
March 27 were distributed to the staff for review and discussion (copy
attached).
i
The Finance Director distributed information regarding Section 504
compliance standards as required by the Office of Revenue Sharing (ORS).
She briefly outlined future activities to be undertaken by the staff
committee responsible for reviewing the City's compliance with these
requirements. A training session will be given during the week of April
1, 1984, and all department heads were encouraged to attend one of the two
alternate sessions, even though attendance is not mandatory.
The City Manager noted that it was Mike Kucharzak's last staff meeting as
he will be leaving his position with the City. Mike briefly informed the
staff about his new position in Pierce County, Washington. Best of luck,
Mike, from all the staff.
Prepared by:.
Dale Helling
(09/
Informal Council Meeting
March 26, 1984 DEPARTMENT REFERRALS
SUBJECT
DATE
REC'D
REFERRED
To
DATE
DUE
0
COMMENTS/STATUS
Cable TV System
3-26
ACM/
Finance
List advantages/disadvantages of
City acquisition.Outline elements
of a feasability study and cost
estimates. Prepare information or
financing alternatives. For
April 6 Council packet.
Space Needs
3-26
P&PD/
Finance
Develop RFP for preliminary
design work, also funding
alternatives.
Ad Hoc Environmental Committee
3-26
Lorraine
Added non-voting member from
Chamber of Commerce Environmental
concerns Committee: Change
advertisement. Also change
termination date to July 1, 1985
Iowa Good Roads Assn.
3-26
City
Manager
Join
Tour of Old Library
3-26
P&PD
Schedule for 6:30 P.M. Tuesday
April 3.
Mayor's Youth Employment
3-26
P&PD
Why is the name still
"Mayor's -------?
City Clerk
Readvertise vacancies.
DEPARTMENT REFERRALS
SUBJECT
� D
TTO O
o�
COMMENTS/STATUS
North Side Lighting Project
3-26
ACM
Status? When will Council
receive report??
Regular Council Meet
March 27, 1984
8
Council Cabl
Cable Servic
Off Street P
Vacation of
Annexed Land
Hotel Alley
Mayor's Youtl
Housing Re
Exterior P
F
r-,
�.aue
LEGISLATIVEow
BULLETIN�'�
ow n�,wr, IY� msls
I SISI rieMal
!! Second Sessi0n, Bulletin 30. 'Iareh iia, 198,1
SENATE IPPROVES DELAY OF PERSONAL i'BOPPRIT TAX
SF 2330, formerly Senate Study Bill 22511, has passed the Senutc on a vote of 3N -IN.
The bill was passed over strong objections from many senutors and the Lcacue that
the impact of the bill would be to cause local goverment to stamp warrants and bor-
row for that portion of the personal property tax replacement revenue which will now
be delayed until FY 86.
.As written, the bill will delay payment of ono -half of the personal property tax
credit funds until .July 15, 1985.
The bill has been referred to rho (louse Ways and 402115 Committee.
Voting yes were: Anderson, Colrain, Uayle, Horn, Kinley, Palmer, Small, Ilrown, (Ll.
ton, Gallagher, Ilusak, Mann, Priebe, Van Gllst, Bruner, Ikluhery, Geetings, Hutchins.
Miller, A., Rodgers, wells, Carr, Dicleman, Nall, .lunkins, Miller, C., Slater and
Welsh.
Voting no: Briles, Hester, Hultman, Ritsema, Vandelloef, Drake, Holden, .Jensen,
500rholtc, Waldstein, Centleman, Halt, Readinger, Taylor, Goodwin, Hulse, [life and
Tieden.
Absent or not voting: Gratias, Lind, Nystrom and Schwngels.
VETS' PREFERENCE FAILS IN COWJTTEE
Despite last minute attempts to reach a compromise on the veterans' pror`cronco bill,
the neeessary eight votes could not be obtained to pass the bill from committee be-
fore the deadline.
Failure of the committee to act means that the legislation is "dead" for the remain-,
der of this session.
Although no official vote was ever taken by the committee, the League counted the
following senators supporting passage: Senators Slater, Carr, Bruner, Col cmnn,
nlaleman, Welsh and Brake. Those who were not supporting passage were Senate"
Nystrom, Briles, Miller, C., Rife, Schwengels and Soorbaltt. Senator Gettings was
undecided and without a recorded vote we cannot be certain which way he would have
voted.
GOVERNOR SIGNS ANTITRUST AND BOND BILLS
House File 1335 and IIF 2322 have been signed into lar by the Governor. (louse File
2335 is an Act relating to liability of cities under Chapter 553, the Iowa comport.
tion law, and Nouse File 2322 relates to public bonds and provides that the costs
related to registration may be paid from the fund from which the principal and
interest of bonds are payable.
TAXI CAB BILL PASSES HOUSE - FAILS IN SENATE
(louse File 1279, an Act relating to the regulation of taxicabs, was passed by the
House and subsequently sent to the Senate where it was defeated on a vote of 15-31.
The final vote came an the bill after amendments were adopted to clarify (louse ac-
tion and to limit the bill to only certain population titles.
Sen. Mann (n -Das Moines) had requested deferral of the bill until amendments could
be filed which would further limit the authority of•a city to require that drivers
be fingerprinted and also removed the provision which would have allowed a city to
refuss a license to an operator if they had violated a federal or state law relating
to possession or sale of liquor or drags.
(over)
l0 9�-
HOUSE .AMENDS. ?ASSES "RIGHT -TO -KNOW" BILL
The Mouse has accepted the League :ecommandation which provides an exemption from
liability for city officials in carrying out the duties imposed by the Sill.
The amendment was Offered as an Energy .o=zttee amendment.
Rep. Rosenberg rD-Ames) argued that because the bill would place a great deal of
responsibility on emergency response personnel at the local level, they should be
afforded the same degree of exemption frma claims u state employees were provided
to the Senate -passed bill.
The bill now returns to the Senate for consideration of the House amendments.
MANUFACTURED HOUSING BILL IS AMENDED AND PASSED
SF 2228, a bill prohibiting toning regulations or other ordinances which disallow
plans and specifications for manufactured housing, has been amended and passed by
the House.
The League had been successful in defeating the bill In the Howe committee, but a
,motion to reconsider the vote was filed and the bill subsequently passed out of com-
mittee on a 12.6 vote.
The League successfully argued that the bill needed to be amended to clarify the im-
pact of the legislation an restricted residence district ordinances and to more
clearly define what was included in the 1976 HUD definition of manufactured homes.
The bill now returns to the Senate for consideration of the Howe amendments.
Final vote in the Howe was S6-42.
HOUSE PASSES COMPARATIVE NEGLIGENCE BILL
HF 2187, an Act relating to comparative negligence and joint and smverml liability,
has passed the Howe and is now under consideration by the Senate Judiciary Commit-
ter.
Prior to passing the House, the doctrine of joint and several liability was removed
from the law. The bill maintains the language passed last session which would pre-
vent cities from being sued for failure to meet standards for design and construe -
tion of public improvements and modifies the sidewalk liability bill, HF SS9, passed
and signed by the Governor earlier this session.
HOUSE ACTS ON PUBLIC FUNDS - AGAIN
The House has once again taken action on public funds legislation. SF 2220, a bill
which had already passed the Senate as an Act relating to interstate banking, was
amended by Rep. Jim O'Kana (D-Siow City) to reinsert the language of HF 2220 which
had passed earlier in the session and than blocked in the Senate.
As amended the bill row provides that cities can imest their idle public funds mot
only in the list of instruments listed in 152.10 but also rated in commercial paper,
bankers acceptances and repurchase agreements.
The bill now returns to the Senate for consideration of the House amendments.
City officials should contact their state senators and ask their support for the
House amendments to SF 2220.
FtOML CATCHES MANY BILLS
The process better known as the legislative famnel reached its second major deadline
on March 23. This marked the day for non-exempt bill from the "other' chamber to
be voted out of standing committees.
Bills not voted out of committee by thdt day were effectively killed for the session.
This week marks another stage in the narrowing -down process when each chamber my
only consider bills originating in the other chamber and unfinished business. Bills
not debated by the other chamber or placed on the unfinished business calendar will
also be subject to the funnel process and the likelihood of passage this session is
limited.
� 9�
.3 -
The House and Senate leadership are looking .for adjournment within the neat four
weeks and beginning the week of April 3 each :hamber may only consider appropriations,
ways and means, finance committee bills. :egoli:ing acts, conference committee bills,
bills passed by both houses in different fora and uniinished business.
LOCAL OPTION TRANSIT SILL STALLS IN HOUSE
HF 2394, in Act relating to the imposition of a local option wheel tax, has stalled
in the House after passing both the Local Government and Ways and means Committees.
Attempts to schedule the bill for debate by the full House have been unsuccessful
and at this late date in the session it is doubtful whether any debate on the issue
will be allowed.
Cities should contact their state representatives and urge them to debate this Isom.
Passage of the bill is especially important to many cities with transit systems but
all cities should remind their legislators that revenue can be used for street pur-
poses as well as transit service.
SENATE DEBATES POLICE REIMBURSEMENT BILL
As this bulletin goes to press the Senate is debating House File 2247, a bill relat-
ing to the reimbursement to cities for lar enforcement training costs. Several de-
ferrals have been granted during debate this week to work on amendments to the bill.
The bill has already passed the House on a 85-1S vote.
SENATE PASSES CONFLICT OF INTEREST BILL
House File 2389, an Act relating to the interest of an elected city official or em-
ployee in contracts for the purchase of goods and services, has passed the Senate
and returned to the House for consideration of the Senate amendments.
As amended by the Senate, a new prevision is added to section 362.5 which is the
general rule prohibiting a city officer from having a fineseial interest in aomermets
or goods and services sold to the officer's city. The nes section milers contracts
for total cumulative purchases of up to one thousand dollars par fiscal year that
benefit directly or indirectly a city officer.
SENATE APPROVES LOCAL OPTION LOTTERIES
Following a series of parliamentary maneuvers the Senate has approved a bill on a
29-19 vote which would allow cities and counties the authority to establish their
a" local lotteries if approved by a majority of the voters in a local referendum.
Under the amendment the measure would be implemented for a period of two years aid
could be renewed for a period of two years if approved by the voters.
The bill provides that 45 percent of the revenue raised from the sale of cards and
tickets could be used as local revenue and the remaining could be used for some
property tax relief.
The measure withstood a motion to reconsider the amendment and a final vote. The
bill faces an uncertain future in the House and indications are the Governor would
also apply a similar veto to this bill if it reaches his desk.
HOUSE SHIFTS HIGHNAY PATROL TO RUT FUND
The House Nays and Means Committee has voted to shift the funding of the Iowa High-
way Patrol from the general fund to the read use tax fund.
This amendment was part of a rewrite of SF 2330, the tax package passed last week by
the Senate.
As proposed the House would accept the Drake plan to increase title fees and liens
In order to provide the necessary revenue to fund the IHP without a reduction in the
revenue distribution to cities, counties or primary systems.
Attempts to block the shift were unsuccessful.
The League has taken a position to resist any diversion free the road use tax fund
which will Create a net reduction in revenue to cities. This amendment effectively
(over)
69,z
creates a diversion were it not for theencreased cues and fees needed to offset
the shift. Additional questions regarding the capitals for the IHP and unfunded
Pension and retirement benefits still neeu to be clarified.
The Drake plan, wnich was part of the Senate-oused 3330, provided fsea to support
the general fund but would have provided for an increase in revenue to the juris-
Jictions In FY 36.
Local officials should contact their atace reeresentative9 and ask chem to resist
the shifting of the !HP to the road fund.
AS NE GO TO PRESS
As we to to press, several other issues are still being debated at the statehouse.
Included In this list are bills dealing with reimbursement for police training costs
to Cities, city officials serving on juries, bond issues and workers, compensation
"choice of doctors" bill.
do9zz
ISSN 0012-5922
Downtown Idea Exchange• some y.
Q strategy•
The newsletter dedicated to downtown revitalization plans.
DOWNTOWN RESEARCH AND DEVELOPMENT CENTER
270 Madison Ave., New York, NY 10016 Tel. (212) 889-5666 rr h 1 s, 1984 vol. 31 No. e
Developing Downtown's Retail Potential
Based on the related concepts that downtowns can be revitalized -through retail
development, and that communities can be revitalized through downtown economic
development, the Federal Department of Housing and Urban Development organized its
second major conference on "Downtown Retail Development." This followed HUD's
highly successful meeting on the same subject held last year.
Based on the idea that downtowns offer economic and business potential for re-
tailing, for downtown shopping center development and for downtown mixed-use pro-
jects, the private -sector International Council of Shopping Centers signed on as co-
sponsor of the conference.
The conference, held in Washington, DC, included comprehensive sessions on
downtown retail revitalization highlighted by leading HUD officials, top municipal
officers, leading developers, financial people, retailers and retail chain manage-
ment officials, researchers, planners, economic development specialists and others.
It was a three-day total immersion in downtown retail development.
In.addition, a full day of individual downtown retail -action case presentations
comprised the kick-off day. Sessions reported in depth on programs and projects in
Durango, CO, Columbia, SC, Louisville, KY, Winooski, VT, Danville, IL, Oak Park, IL,
Pasadena, CA, St. Paul, MN and Seattle, WA. A second series of case studies concen-
trated on the critical area of "how we made a deal" covering practical examples in
Guthrie, OK, Stevens Point, WI, Macon, GA, Muskegon, MI, Boston, MA and Cleveland, OH.
Downtown Retail Perspective
Among the people assembled for the conference there were a number of important
ideas, viewpoints and concerns about downtown retailing potentials. Some highlights
are:
' Many downtowns, but not all, have retail growth potential.
' The retail potential that exists will never "remake downtown retailing as it
once was." The retail of today and of the future downtown will be uniquely
tailored to specific market opportunities and special development feasibility,
downtown -by -downtown.
' Mixed use offers good downtown opportunities but, once again not everywhere.
Mixed use greatly complicates the development process. It is difficult to do
even under the best circumstances. But mixed use can be the device that makes
an entire project feasible.
* Clearly, many retailers who would never even have considered a downtown loca-
tion a few years ago will do so now.
' A basic reason many downtowns are currently weak in the retail sector is that
they are grossly understored in many retail categories.
01984 Alexander Research d Communications, Inc. All rights reserved. 6, 93
* The shopping center industry is ready to talk business with downtowns where the
situation is right.
• Cities and planners must be increasingly aggressive in cooperating with re-
tailers and developers. They must eliminate obstacles, facilitate the permit-
ting process, become more flexible and, in general, learn much more about the
development world.
* Downtowns need to "get organized" by creating the right sort of unified, intel-
ligent, experienced and cooperative development -oriented structure. Preferably,
there should be a single, cohesive representation of downtowners rather than a
big handful of different and often competing organizations.
' The local financial institutions must be more active. Yes, they should be in-
volved in supplying funds. Equally they must add their know-how in the local
business area, and they must put their heavy prestige and support behind proj-
ects. Potential outside developers and lenders look for this.
* Conversions of older buildings should provide a major structural resource for
clusters of buildings offer downtown retail development. Old department stores, warehouses, loftsand even
ial
economic characteristics, are uoften teligible vfor pworthwhilement ttax mayaids andecan good
make for an attractive fit into downtown's structure.
* Timing is critical in retail -oriented projects. The supporting infrastructure
must be in place when the retailer first opens doors for business. A major
part of this infrastructure includes all the work necessary to make it possi-
ble for shoppers to get downtown, and to move around within d
parking, transit, walkways, etc. owntown; access,
* Local people need to clear their minds of unreasonable expectations about what
retailing and what buildings can be developed in their downtowns. The closer
they are to reality, the better they will do.
* The downtowners and the retailers can influence retailers and developers to
come downtown by working on improving the image of downtown and by generating
activities and events that will draw in people.
` A direct way to strengthen downtown retail volume is by developing the mix of
stores, the range of other businesses and the scope of activities, events and
entertainment and cultural activities which will hold people downtown longer,
giving them the opportunity and incentives to do more things and to buy more
things on each trip into downtown. This applies not just to straight-out
shoppers, but also to downtown employees, tourists, and all others.
Downtown Retail Revitalization; Makin The Decision
Welcoming the hundreds who attended this conference, a solid increase over
HUD's first downtown retail event, Assistant Secretary Stephen J. Bollinger said
that "one of the most important issues in the country today" is downtown retail
revitalization. This is reflected in the HUD initiatives for downtowns.
To put things into perspective, Martin J. Cleary, who heads Jacobs, Visconsi &
Jacobs, developers of both suburban and downtown centers, pointed out that while
about 43 percent of all retail is now controlled by the'suburbans (and that will
rise to 50 percent) the suburban shopping center industry is now a mature industry
lacking the growth -rate potentials of the past. So, Cleary adds, "All developers
are looking for new opportunities and many are in downtowns." On the other hand,
downtown retail development is high-cost; therefore both public and private capital
must be utilized to make it happen.
The concept of downtown development as community economic development, and its
role in total city revitalization was explored by Cleveland's Mayor George V.
Voinovich. Based on Cleveland's hard-fought battle for revitalization Voinovich
outlines -- from the mayor's desk -- some advice for mayors on stimulating downtown
revitalization:
• Concentrate your efforts on projects that are doable.
• Create an atmosphere in which business no longer sees the city as hostile.
• Provide the essential, basic infrastructure.
• Use strong downtown promotion to build improved image.
• Be sure to link downtown plans with neighborhood revitalization as well. Make
it balanced. This is not only good planning and development but also is a
political necessity, and sophisticated developers will love it.
• Be active in the search for the best possible developer. But do this quietly:
don't announce projects and/or developers until certain it will happen.
• Always be prepared to respond quickly to development proposals. Offer any
financing, permitting, etc. promptly. Follow through. Respond fast at all
times. OP, if you can't move fast, then "get out of the way" of the developers.
• Build a really good planning and economic development staff. This is essential
in complex projects, and downtown retail -oriented projects are'always complex.
• Consider something like Cleveland's Downtown Business Development Advisory
Group and use it for advice, information, funding and more. Bring into it only
people who sincerely want'to help shape the destiny of the city.
It is work, says Voinovich, but it can payoff. He tells of a very prominent re-
tailer who said "The shoppers are returning. It reminds me of the good old days."
After extensive research, economist Gail Garfield Schwartz pinpointed two im-
portant trends: first, that in many locations suburban areas are now over -stored
and second, CBD land values are becoming comparatively more attractive to developers
and retailers since suburban land costs are rising much faster. Examining the pat-
terns of successful downtown retail growth, Schwartz advises that retailing should
be developed in conjunction with housing (especially for the more affluent), with
office space development (to build the daytime customer base), and along with visi-
tor/tourist and related action. Both retailers and developers want to see all these
market segments available to them. Also it is effective to "make shopping part of a
recreation activity." But, when going this route of bundling together many uses it
becomes critical to have "careful control of the activities package" so that it all
supports retailing.
Among the critical factors a developer wants to know about are the market's
demographics, the competition (bearing in mind that for downtown analysis "theoreti-
cal trade areas don't count"), the transport system's effectiveness including both
cars and buses, the available "complimentarities" (that is the housing, office,
tourism attractions, etc.), the development costs and the rewards. For the costs
and rewards, the public sector also must thoroughly understand what's proposed.
This is the kind of information package to take to the developer candidates. Eco-
nomist consultant Schwartz feels "The future of downtown retailing is very, very
vital."
-3-
X93
How does a retailer look at the potentials in downtown? This question was an-
swered -by Walter H. Heinecke•, Director of Real Estate with Edison Brothers Stores, a
large chain with over 2,000 apparel and shoe stores, lots of them downtown. Heinecke
commented that Edison's "stores in downtown projects have been very successful."
i They are in many such projects in downtowns of all sizes. The key elements for a
retailer in evaluating a possible downtown store include these: the presence of
j major stores that will build traffic (department stores or other types of majors);
good food attractions; a functional layout that moves people well; proper store unit
sizes and dimensions; convenient and adequate parking; a dominant position or role
for the project, especially for projects in smaller cities and towns; a properly
designed retail section as part of a multi -use project so that the other uses do not
negatively impact the retail area; good store identity especially in conversion
projects where this is difficult to do; the avoidance of over -building in cost terms
that may burden the retailers with excessive operating costs; avoidance of over -
sizing the project; good handling of security and a design that gives the appearance
of security; a correct merchants' mix containing retailers who understand how to
merchandise correctly to specialized downtown markets and shoppers. Edison's expe-
rience is that downtown projects "have been and can be very successful" if the
projects are done right, and that "There's still plenty of opportunity."
The president of a large development company which has opened a number of sig-
nificant downtown retail centers, John M. Gilchrist, Jr. of Ernest W. Hahn, Inc.,
believes that "There is a subsidy that has to be brought to the table for retail de-
velopment." Due to high costs of land, design, construction, parking, etc., and to
the internal economics of retailing, a subsidy is necessary, from the public side,
to make retail projects happen.
While ten or so years ago there was little or no retailer interest in downtowns
"Today it's a lot easier," there are still problems and they still expect urban
renewal type subsidies.
The underlying cost dilemma is reflected in the Hahn company's figures. Their
suburban stores overall average $160 per square foot in sales while their downtown
projects average just $6 more, at $166, while downtown total development is much
more costly.
Facing the lenders, Gilchrist now finds that they are "very supportive" of
downtown projects and are not as fearful of risk there. Hahn can get about the same
rates from lenders for downtown as for suburban projects. What is needed to make a
supportable downtown development? Gilchrist lists these items: (A) the project
must be profitable, yielding 14 to 15 percent free and clear cash flow on total
investment; (B) the demographics must be good or can be made good; (C) there must be
patience all around (while suburban projects require four to five years typically,
downtown projects take eight to nine years; (D) there must be high-level profession-
alism on both the city and the developer sides; (E) the projects downtown require
innovation not copy -cat work in design, financing, parking, ratios and all else; (F)
there must be built-in flexibility during development since markets and other condi-
tions can change during the long development process.
There are special issues related to mixed-use, festival or entertainment -
oriented projects comments Charles C.G. Evans, Jr. of Evans Development Co. which
has been successfully involved in several such developments. Evans advises the
cities to be clear about what they want and what they expect to get out of downtown
projects. Do they want, for example, a development that will complement the exist-
ing downtown? Or do they want a new catalyst for downtown? Possibly they want a
"savior for downtown." If it's the latter, Evans warns, "you are on the wrong
course" since retailing is just one of the components of downtown, and must be
understood that way. Once a city has clearly and accurately defined its wants, then
it must go out and find the right developer. Since developers are different, one
from the other, it is crucial for the city to locate the right one with the right
experience to deliver the right product downtown.
Try to avoid just issuing Requests For Proposals: they are very costly for the
developer and may drive off many good prospects. Consider the Request For Qualifi-
cations alternative. This will tend to get more developers interested, then the
city can evaluate them based on their qualifications. Select one, set up an exclu-
sive period for that firm as a sole source, let them know you really want them to do
the job, help cut the red tape, and see what they come up with.
A couple further practical points: Evans feels that good downtown projects can
be done without majors or anchors. In mixed use, a non -retail activity can operate
as an anchor. Try multiple developers in multi -use projects with each specialist -
developer working on his specialty. Finally, look at each location creatively,
don't try to copy some other downtown's idea since good downtown projects are "hand-
crafted, individualized approaches."
Shaping Downtown Partnerships
In a brief, but important, comment Albert Sussman, executive vice president of
the International Council of Shopping Centers, aptly described the newly emerging
relationship between shopping center people and downtowners. "ICSC is deeply com-
mitted to downtown development," Sussman stated. He amplified ICSC's role saying
"We'd like to change and restore the face of downtowns to their former greatness."
The Rouse Company is a development firm noted for both suburban successes and
also for its important role in conceptualizing and executing downtown projects.
Rouse President and CEO, Mathias S. DeVito stressed the need for public-private co-
operation in downtown projects. These projects, he said, "must be the product of
very close public/private effort. In fact, contrary to the usual developer mode of
action -- where the developer instigates and pushes the whole project -- in downtown
projects the developer is actually "the junior partner." It's the city that is the
leader in "creating the project and marshalling the resources." This happens be-
cause of the unique control the city exercises over land assembly (often using
eminent domain powers), the city's access to UDAC and other funding, the city's
basic role in traffic access work, in parking, etc. This means the 'city really
creates the project as a possibility, then draws in the developer.
Factors in the developer's "total decision" about stepping into a downtown pro-
ject were listed by DeVito. These are: project location; the kind, size and char-
acteristics of the supporting market: the supply of parking and of transit; the '
safety and safe perceptions of the project; the intrinsic project excitement -- the
something special that people will want to come to; and, a city that can make it
work, that is willing to work with the developer, and that is willing to help close
the financial gap.
The positive role of downtown organizations as aids in putting together down-
town retail projects was emphasized by Richard H. Bradley, executive director of the
Hartford Downtown Council. Bradley also finds that in energizing the local business
community, senior business leaders have always had operating informal networks among
themselves. Now, he adds, these networks are being clarified and formalized, be-
coming more open and explicit in terms of their crucial role in facilitating down-
town projects. (Bradley will soon leave Hartford to take over the role of head of
the International Downtown Executives Association based in Washington.)
Alexanders, a major
Farkas, Chairman of the
to have in order to make
include a local transit
chain of department stores, was represented by Robin Lewis
Board. Farkas discussed the things a department store needs
a positive decision to enter a downtown situation. These
system that's good; strong nearby residential areas; good 93
security; cleanliness; cost-effective advertising media that match the market; sup-
port from the community and the neighborhoods; city support and use of its powers to
help shape and produce a good project; tax abatements that will bring retailer oc-
cupancy costs downtown to affordable levels; adequate parking, which usually must be
subsidized (but, Farkas noted, a low price for parking is acceptable); and, at the
bottom line someone who can close the cost gap since "without subsidies we can't
build department steres in downtowns."
Speaking from the lender's side, Ray Morgan, second vice president, Real Estate
Investment Department at Traveler's Insurance, says that as a major lender they are
always looking for projects. Since real estate investment is highly cyclical, fol-
lowing basic socio-economic trends, the availability of funds for various types of
projects is also cyclical. Now, Morgan finds that CBDs are doing better in getting
funding and that downtown retailing will offer good future opportunities for invest-
ment. That big movement in office development in many downtowns provides a back-
ground for drawing retailing back downtown. But, since rates are still high, the
financing package will have to be a mix of market rate and subsidized financing.
Typically for a downtown project, financing must be attracted from many sources.
Looking ahead, for downtown projects, Morgan sees "many more in the future."
The primary thing to remember in creating effective public/private partnerships
for downtown retail and development action is people. According to Laurence A.
Alexander, editor of Downtown Idea Exchange, these essential partnerships are not
made between abstract entities but are deals cut among people. While there may be
institutions formally involved -- city councils, planning boards, development
corporations, banks and the like -- it is the people who run them that count. To
get downtown projects moving it is basic to focus on those people, their needs,
their fears and hopes, their abilities and their limitations.
Second is the essentiality of forming strong, vigorous downtown organizations
to help bring those people together, to provide a focus for their work and a forum'
for resolving problems and conflicts. All the people downtown have different goals.
Retailers, property owners, bankers, elected officials, city staffs, developers and
residents face obviously different situations. The art of downtown.development is
in getting them together at least to the extent that there are no major vetoes on
projects and proposals.
After a long down trend, Alexander sees real growth in downtown development in
the retail sector in conjunction with other sectors. "Many downtowns," he pointed
out "now offer genuine retail potential based on new demographics, a new balance in
competitive sites and expanded, sophisticated know-how among downtowners, officials,
developers and retailers themselves.
Five ingredients necessary to generate retail growth action in downtowns were
summarized by Jack R. Stokvis, HUD's General Deputy Assistant Secretary for Commu-
nity Planning and Development. These include: Leadership in both the public and
private sectors, Entrepreneurial spirit in both sectors, Assessment of the assets
and liabilities of downtown in a realistic way, Partnerships formed with both the
public and private sectors fully participating, and Sound basic economics. It all
adds up to the acronym LEAPS, says Stokvis who was the driving force in creating the
HUD/ICSC conference.
Financing Tools And Resources
City officials were told that the financial capability of the developer may
very well be the most important factor in deciding which developer to choose.
According to Stephen R. Karp of State Properties of New England, the developers,
too, should be certain that they understand the fact that downtown development is
long, hard process. So, "Don't start if you won't be able to finish."
1, 93.
UDAG senior Development Director Cornelius W. May outlined key issues in win-
ning the coveted UDAG funds that have been the gap -closer in many downtown projects.
UDAG officials look to what they call "chart factors." These include the amount of
leverage, or private dollars that UDAG dollars will draw out. A ratio of at least
2.5 to 1 is essential, but the program to date has achieved a 6 to 1 ratio overall.
A second factor of great importance in winning a UDAG is permanent job creation.
The range on UDAG-aided projects is running between $6,000 and $10,000 in UDAG funds
per job. Third, HUD is looking for increases in local tax revenues to support the
local economy through the UDAG process. Experience shows about 10 cents a year in
tax growth locally for each UDAG dollar invested.
Also, HUD follows usual underwriting procedures but must rely on the other -
lenders involved to spearhead this, with UDAG people reviewing the work. This in-
cludes analysis of land and construction costs, soft costs, etc.; the income flow; a
solid pro forma. Then HUD wants to see if the project will be successful and to
evaluate the size of the action grant required. Going in, HUD will require "a firm
commitment" from the commercial and/or institutional lenders involved; while the
commitment may vary as to form, it will be carefully scrutinized. And, the "but for
letter" is basic in explaining exactly why the project could not be done, "but for"
the UDAG grant to close the gap.
How does a banker look at these downtown projects? Answers were provided by
Philip Harmon, Shawmut Bank of Boston. The banker, Harmon reports, must focus on
all the underlying businesses in a retail project. This is to show if the real
business base, the stores, will work out, since their business is the foundation for
the whole project.
Specifically, a banker will look for a good, thorough, objective market analy-
sis; cash flow projections, well worked out pro forma balance sheets, a sensitivity
analysis (showing what happens in the best case, in the worst case and in the most
likely.case). The banker, in evaluating a downtown retail project, wants to see a
really good team involved and that includes all the project participants since the
key to a banking decision is "a people analysis." In line with that, Harmon ad-
vises "you must have a very strong leadership person to go to the bank."
Also, banks like to hear about the project early so they can begin to watch it
evolve. Then they want to be kept informed. This also gives the developers a
chance to estimate the bank's reactions, to spot problems and to take mid -course
corrective action. Banks, Harmon adds, are "fairly subjective" in evaluation and
decision-making. They are less rule -bound than Federal agencies. They will do
detailed credit analysis, presenting that to the loan committee. For the downtown-
ers and developers this suggests an important strategy: have "a point man" on the
loan committee, a person who has been kept well-informed on the project. This
person can then "represent" the project to the loan committee, and lead in the
presentation to them.
Syndication -- defined by John C. Fergus, II of Cranston Securities Company as
the selling of ownership interests in a project -- can be an important source of
money for downtown developments. Echoing a viewpoint of Philip Harmon, Fergus em-
phasizes the fact that in syndicating a project you are actually syndicating the un-:
derlying business as well as the real estate. That means the underlying businesses
"must be well -conceived." This in turn means good underlying business and good real
estate values can support each other to make a better deal.
Finance is easy, comments Ben Gifford of Jeremiah W. O'Connor & Co., if the
product (the project) is what the investors are looking for. In a viewpoint that
some retailers will find disturbing, Gifford also commented that retailing is not
the basic factor that attracts the people. Rather he feels that the markets must be
there. Retailing then operates to serve the market. This implies that, for good
downtown projects that are financeable, it is fundamental to evaluate the markets
-7-
9.:
and the ability to improve the markets. Also, retailing is a concept business.
Witness to this are the many theme, festival and other concept centers that have
been making business news in downtowns.
The lenders who can finance downtown projects over the next few years include
some familiar and some novel participants: insurance companies, savings and loan
institutions (often as packagers), group trusts, private and public pension funds,
endowment funds and union pension funds. A problem lenders face is that they are
asked to commit funds now for projects that won't be completed and generating reve-
nues for two or three years. To protect against financial risks, lenders will be
demanding equity kickers. As always, the "bottom line" for the project is the
critical line. Gifford reconfirms the view that there must be public sector money
put into downtown retail -oriented developments in order to make that line look bet-
ter to lenders. He also confirms the belief of the other money people that the
quality and success of the underlying retail businesses is fundamental. If the re-
tail business is there, Gifford says, "Attracting investment to downtown will not be
a difficult process."
Retail Development Marketplace
Sixty-two towns and cities signed up for booths where they could present their
development concepts and make contacts with developers, financial people and others.
They came from 29 states and Puerto Rico; plus there were two states, Georgia and
North Carolina, which represented downtown opportunities for several of their com-
munities. This report has covered many of the fundamentals of downtown retail
development, the kinds of things that were hammered out in discussions between these
communities and potential developers. From this hard-headed approach other critical
factors that emerged as important were --
The need for gap financing and cost reduction tools, since retailing can't
usually support the total costs of redevelopment projects.
' The importance of linking downtown with its neighborhoods creating communities
as well as markets; and helping significantly to increase the local political
feasibility of downtown retail projects.
' The understanding that over the long pull, it will be the viability of the
businesses in the project that creates the total project bottom line.
. The unusual fact that for downtown retail, mixed-use and similar projects, it
is typically the public sector that must take the lead, conceive and package the
projects, then seek developers. This is hard for some developers to handle since
their normal modus operandi is an aggressive role in putting the development to-
gether, then seeking only city permits.
• The realization that downtown projects are always complex, slow and hard work;
that they require the best skills available; and they must bring together all the
key people for action.
Downtown Idea Exchanges
270 Madison Avenue. Suite 1505
New York. NY 10018, Tel. (212) 989.5588
Editor Lawrence A. Alexander
Editorial Coordinator Mary Dalessandm
ProduS 7abbla
Me
Publiy Alexander
Downtown Idea Exchanges Is published twicot mnmly by the Down,
town Research 5 Development Center, an Independent orgarbartbn
which hoe, since 1954, studied and reported on downtbwn problems and
solutions in an etton to provide a focus for recycling our crisis. In ad&
tion to publishing newskinem, the Center conducts research, publishes
books, reports and studies, holds conferences and seminars, produces
visual presentations and acts as the international clearinghouse on
downtown rewlallzatlon.
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Ex -
les. Austin Officials Caught in Cross Fire in Bid
r� To End City's Role in Texas Nuclear Plant
:due-
ead.
?ort•
nave
nent
m to
:: on
By KARm BLumium v,
Sniff RepMIMOIT.0 WA Sts Jaun.,AI
AUSTIN. Texas—Pity Mayor Ron Mullen
and the City Council.
They can't sell Austin's share of the
South Texas Nuclear Project. No one will
buy It.
16 They can't give it away. No one will take
„mal They keep shelling out Sts million a
stion week to help finance 41e ccoranctiom
tial . And lest about every time they make a
eely move, they end tip In some sort of hassle.
West umtailY !s court
Tie Sash Texas project IS a two -unit. 2.5
the mUUm•kilowart nuclear ower plant being
tin
io
't's
ts-
:on
n -
E:
or
re
of
a
ex•
.w
er
ed
r
ad
tat
xl
at
its
our
In
.13
or
Ie
of
n•
In
if
Id
N
Lx
iy
Id
to provide the Houston, Corpus Christi, Aus•
Un and San Antonio area with enagb elec-
tricity for years to come. Austin am 16%
of the project and has already invested $0
million In It.
When the project was begun In 1972, the
first unit was suppond to be canpletied In
1960, the second In 1988 Thou target data
now are 1967 and 1989. 'tie fatal cat was
originally estimated at ri billion. Now It is
put at 55.5 ballon.
The delays and the soaring cats have
soured Austin residents on the project. "I
think It's gone beyond whether you're pro-
or
mor anti-nuclear. For most now, the issue is
straight -up ecomtnhes," says Carole Keeton
Rylander, a former mayor of this home of
the University of Texas. She once whole•
heartedly supported the plant ,
Other people here used to be enthusiastic
about the project, too. They supported It In
four elections, but In November 1981 they
changed their minds: By a nw& of 58% to
127., they authorized the council to sell Aus-
tin's share. This fag mwlntg city of 388,888
people will need the power someday, but the
voters decided there must be a betterway to
get It.,
The council would love to follow the will
of the people by seceding from the project
It has even offered to give Austin's shim to
anyone who will assume the paymennts. But,
unable to comply with the voters' mandate.
It feels that It must continue to make the
payments itself. .
Some plant opponents want the payments
stopped. That,. they hope, would force the
other partners—Houston Lighting & Poser
Co„ the city of San Antonio and Cential
Power & Light Co. of Corpus Chrlstl—to el•
ther cancel the project or assume Austin's
share. But city officials warn that such a
move would be financial suicide for the city.
They say that Austin's partners would cer•
taWy sue and ndo Austin's credit eating.
Before the voters turned against the proj.
ect, they had approved revenue bonds total.
Ing sm million. Even atter turning against
It, they approved, in January 1993, a SST mti-
Ilon revenue -band package, but the thane.
Ing was stalled—It still Is—by a legal dispute
over the ballot's wording. Needing money to
mate the payments. the council Staged•a
coup 10 Jose: It approved Issuance of SM
million In short-term min and closed the
mosaetion almost immediately, A lawmdt
questioning the notes was filed minutes
later—tin late
"Lnddly," says brant Rodriguez. who is
Aus n's management -services administra-
tor. "one closed one minute after the council
�aari�
Some plant opponents
want the city to stop
making its.$2,5 million
weekly payments to the
project. But officials
say that Austin's part-
ners would certainly
sue and ruin the city's
credit rating.
voted, and we already had the cash In
hand." LAter the engaged arranged for X7mWlog more In short -Lem notes
But the money will nn out date this
modh. Foreseeing tkls, and finding that
banks wouldn't join in further short-term so•
lutions unless the city made a longer-term
commitment, the mayor and the council
went a step further. On Match 1, before a
hostile crowd carrying signs hearing such
slogans as "No More Atomic Bonds," they
agreed, for the drat time, to bypass voters
In laming revenue hands.
They voted to Law up to 5665 million
worth, enough, under currant cost esti-
mates, to cover all of Austin's remaining
payments. And just In tate another lawsuit
should delay the bands, they have arranged
for L90 mulled more in sbort•term notes. The
only alternative to the bond Lowe, the mayor
says, would be to raise electric rates 35% on
tap of a recent 20% Increase.
Issuing revenue bonds without voter ap-
proval
pproval violate the city charter, so the com-
ell acted under a state, law that conflicts
with the charter on this point It was a bold
move, and the officials who made It weren't
exanily casual about It. Mayor Mullen, Inti
example, did d complete Npflop that day.
"1 said at three In the afternoon that I would
not Issue revenue bonds without voter ap-
proval,"
pproval," he says. "and then sir hours later I
did IL"
Opponents of the project are furious. Pe.
UUM have been tiled to recall Mayor Mul-
len acid all six council members, and the
bands are being challenged In, court. "We
canna not litigate." says LAW Slnkln, co.
otdtoalar of the -South Texas. Cancellation
campwgs. the plug's leading opponent
"We can't let them set this Precedent."
All the confusion and financial shenant-
gans haven't escaped the notice of tete
credit-ratingjageicies and bond anWysts.
Most analysis say they understand the coon.
c11'3 move to bypass voters, but they say
Austin still must meet Its future energy
needs and calm Its antagonized citizens.
"It's not a good situation to have all your
voters In your service area against you."
says Wendy K. Stadoyk a vice president of
Standard & POWs Corp, the rating
agency''
To Austin otilefals, the hat way to end
the whole mutter would be to unload the
city's share. Austin has stied Houston Lght•
Ing i Powerwe project's mausging Pin.
ner. add asked a judge to retleve It of its I[ -
asocial ttwpatsiblfity; It has hired Merrill
Lynch Capital Markets as Its divesduire
agent
t
16% 6hat'e be hleldded Ion ally settiernas Ina
lawsidt flied by Houston Lighting & Power
and the other partners against Brows &
Root Inc. Houston Lghtlng & Power find
Brown•& Root as the project's archlted-en-
r Ld 1981, and Brown & Root �ilder not logafte . Bechtel Power t as
buCorp.
and Ebaseo Services Idt have replaced
Brown & Root.
Austin has also asked Its partners to eon -
aider converting the South Texas Nuclear
Project to cal—and It has asked them to.
theo t the ecchaance ect's future hp am miand ght i
decide jo cancel the whole thing. So far, the
partners have turned down both mquesls,
U anyone Is to take over Auatln's share of
the project, the most Wtely candidates are
Its partners But Houston L I ting &Power,
with WAS, and Sot AoWnb, with 28%, ay
they aren't InteresCentral Power &
Light, with 52%.gays It Mtht want Aus-
tin's Interest someday, but not right now.
"at frankly we don't feet like, at this stage
of the game, our customers can afford any
more risk After it's completed, then it may
be a whole different hal game."
Austin's partners say they won't shed
any lean If the city manages to find a way
out after all. "We'd be pleased," says Don
Beeth, Houston Lighting & Power's director
of nuclear Information. "It's leen a painful
thing to Austin and to us. We just don't need
this constant turmoil."
OF
PRECEDING
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W, Arthur t�tllmaa, Mr. We oter's fo.—tr didn't see. Including me." Smaller tiqu al- the hum next door to his when It cm
marketing hobs, at Ohio State Univer noes followed. Including Vletona's Secret, the market to Columbus. He later resold It
dry and a limited director. "So he opened which sells daidipm Bagale. and Smart to someone he decided be wouldn't mind
one In MBwaakee." Limited went public In Sine, an otf•price retailer. having for a neighbor.
Austin Officials Caught in Cross Fire in Bid
To End City's Role in Texas Nuclear Plant
By Fim m BtuMnvntu.
Smftfl p "t QJTMtrw.Sr Jouv,u.
AUSTIN, Texas—Pity Mayor Nan Mullen
and the pry Council.
They can't sell Austin's share of the
South Texas Nuclear Project No one will
buy It.
It. ' on
They can't give it away. Noe willtake
They keep sheNnf out Sts million a
week to- help floabce *A moaructrim
. And just about every time they maim a
move, they end up in some son of bask,
built along the Cuff of Mexico. It Is Intended
to provide the Houston, Corpus Christi, Atw
tin and San Antonio arm with eamgh elec-
tricity for years tn come. Austin owns 167o
Of the project and has already Invested U55
minim In IL
When the project was begun in 198, the
first unit was supposed to be completed In
1980, the second in 198L The target data
now are 1987 and 1988, The total cat was
originally estimated at fl billion. Now It Is
put at S5.5 hilm
The delays and the soaring costs have
soured Austin residents on the project. "I
think It's gone beyond whether you're pro•
or anti-nuclear. For most now, the Issue is
straight -up economics." says Carole Keeton
Rylander, a former mayor of lots home of
the University of Texas She once whole•
heartedly supported the plant
Other people here used to be enthusiastic
about the project, too. They supported it In
four elections. but In November 1981 they
changed their minds: By a margin of 589E to
4276, they authorized the cou l to sell Aus•
tin's share. This fest gra lag city of 380,000
people will need the power someday, but the
voters decided there must be a better way to
get it,
The council would love to follow the will
of the people by seceding from the project
It has even offered to give Austin's share to
anyone who will assume the payments But,
unable to comply with the voters' mandate,
It feels that It must continue to make the
payments Itself.
Some plant opponents want the payments
stopped. Thar,. they hope, would force the
other partners—Houston Lighting & Power
Co., the city of San Antonio and Central
Power & Light Co. of Corpus Christi—to el•
ther cancel the project or assume Austin's
share. But city officials war that such a
move would be financial suicide for the city.
They say that Austin's partners would cer•
fainly sue and nein Austin's credit rating.
Before the voters turned against the proj•
ect. they had approved revenue bonds total.
Ing 5337 million. Even after tuning against
IL they approved, In January 1997, a S97 mil•
lion revenue -bond package, but the thane-
Ing was stalled—It still Is—try a legal dispute
over the ballot's wording. Needing money to
make the payments, the council suged•a
coup last June: It approved issuance of $30
million In short-term notes and closed the
transaction almost Immediately. A lawsuit
quest'adng the now was Ned minutes
tater—too late.
"Lucidly," stye Flank Rodriguez, who Is
Aurtin's maeagementservlces adminlatra•
tar. "we closed me mlmte atter the cound
noon e
Some piantopponents
want the city to stop
making its .$Z5 million
meekly payments to the
project. But officials
say that Austin's part-
ners would certainly
sue and ruin the city's
credit rating.
voted and we already had the crib In
Land." Later the camcU arranged for fe
million more In short-term notes.
But the money will nm out late this
month. Foreseeing this, and finding that
went a step further. On March 1, before a
halve crowd carrft sips bearing such
slogan an "No More Ammle Bonds;' they
agreed, for the first time, to bypass voters
In IoWeg revenue bonds.
They voted to Issue up to UN milllm
worth, enough. under currant cost esti•
mates, to cover all of Austin's runaWng
payments And just In cane another lawsuit
should delay the boada, they have arranged
for0mBUm more lnabort-tem notes. The
only alternative to the bond issue, the mayor
says, would be to mise electric rates 35% on
top of a recent 2074 Increase.
loving revenue bonds without voter ap
provai violates the city charter, so the coun-
cil acted under a state• law that conflicts
with the charter on this point. It war a bold
move, and the officials who made It weren't
exactly cotta' about It. Mayor Mullen, for.
example, did a complete Bipflop that day.
"I said at three In the afternoon that L would
not Issue revenue bonds without voter ap-
proval," he says, "and then six hours later I
did IL"
Opponents of the project are furious. Pe.
Utions have been tiled to recall Mayor Mul-
len
Wlen and all six council members, and the
bands are being challenged in- court. "We
cannot rot Utigate," says Lanny Sloktn, co•
ordloator of the South Texas. Cancellation
Campaign. the plant's leading opponent
We can't let them set this precedent"
All the confusion and financial shenanf•
gabs haven't escaped the notice of the
credit•ratingjageimies and bond analysis.
Most at a'ym say they understand the col
ell's move to hypes voters, but they say
Austin still must meet in tutors energy
needs and calm Its antagonized entente.
"It's out a good situation to have all your
voters In your service area against you,"
says Wendy K. stadnyk. a vice president of
Standard & POWs Corp.. the rating
icy`
To Amtln oMciats, the beat way to end
the whole matter would be to unload the
city's share. Austin has sued Houston Light -
and asked a judge to rellev it of Ipart-
Der. •
nsnclal tespatelblllty., It has MW Merrill
Lynch Capital Markets as its divestiture
agent And It has asked that purchase of Its
16% sham be Included In any settlement In a
Root Inc. Houstdn Lghdar & Power fired
Brawn•& Root ore the projects areblteceeo-
glneer it 1981, and Brown & Root quit as
builder not long atter. Bechtel Power Corp.
and Ebueo Services Ina. have replaced
Brown & Root
Austin has also asked Its partners to car
sider converting the South Texas Nuclear
Project to coal—and It has asked them to,
study the projeet's future casts and risks, on
the outside chance that the partners might
decide k cancel the whole thing. So far, rhe
partners have turned down both requests.
H anyone Is to take over Atisda's share of
the project, the most likely candidates are
Its partners But Houston Lighting & Power,
with 304%. and San Antonio, with 28%. say
Light, with ssays It might wnd Central �Mnr
tin's Interest someday, but not right now.
"We have considered -It," says CP&L'9
chief executive officer; Merle L Borchelt;
"but frankly we don't feel like, at this stage
bf the game, our customers can afford any
more Mat Atter ml's completed, then It may
be a whole different ball game."
Austin's partners say they won't shed
any tears It the city manages to find a way
out after all. "We'd be pleased," says Don
Beeth, Houston LighUng & Power's director
of nuclear Information. "It's been a painful
thing to Austin and to us. We just don't need
this constant turmoil."
Wyoming revot gains oil prices
may result in public utility takeover
Now York Timm Saviee
CASPER. Wyo. — It started with some City Council
members wondering it the local gas company -would
give Casper a break on its municipal gas purchases, and
it may end in a consumer revolt against high natural gas
prices across one of the country's biggest garproducing
states.
Casper and •a handful of other Wyoming cities are
conaidaring taking over local gas utilities through
condemnation and the setting up of municipal systems._
THE ISSUE is whether consumers must continue to
pay high prices when far cheaper suppiles•Ile bottled up
j In upped wells for lack of any taken
"Wyoming is an energy colony for the rest. of the
country," said. Larry Clapp, a Casper city councilman
who Is leading the cause, "and I think that in some
small way we're attempting to declare our independ•
ewe.
"We pay for everybody.else's natural pain the boom-
-and
-bust
oom-
-and•bust Cycle of the enerU huskreu," he went on.
"'When the schools need new classrooms for the kids of
;–all the new workers who come, in teem. We pay for It in
the additional costs for police and flim protection and
for increased demands on water and sewer. And then
we're supposed to pay for it again when we buy our own
gas back to oar."
The "feud for fuel" in this city of 51,000'pseple
Illustrates one of the seemingly contradictory effects of
the partial federal deregulation of the gas industry. It
also points up the difficult question of who most pay
i when a regulated utility makes a costly decision.
In this case, the Casper gas utility signed a gas
' purchase combrad with its supplier that glows
unlimited price escalation but excludes competition
-.from cheap gas when them Is an oversupply. Similar
: questions dog other gas utilities around the country in a
: time of energy surfelt, as well as electric utilities that
•
have* built too much generating capacity or that are
committed to expansive, long-term coat contracts.
The coofik•t here began when Caspees franchise with
' Northern Utilities Division, Its gas suppler, expired In
July alter 25 years. Gas prices In Casper and other cities
served by Northern had been rising steadily, increaaee
the utility blamed on a contract committing it to buy its
gas from the Amoco Production Company at the highest
Price allowed for gas sold in interstate committee under
the Federal Natural Gu Policy Act.
A RESULT is that Northern Utilities and other
divisions of the Xamm Nebraska Energy Co, chop
Casper. Laramie and other Wyoming cities $529 per
thousand cubic feet of gas from Amoco. while other
Wyoming municipsiities, served by pipeline utilities
with mom favorable supplier contracts. charge as much
as $2 less.
What seems most galling to the people in Casper is
the effect of the government's partial deregulation:
Hugs supplies of federally regulated gas with prices of
70 ane per thoasend cubic feet or less IN in wells that
have been upped as producers comsat 20 on selling
gas from newer weld whose Oct, is ant regulated.
WITH THE EXPIRATION of the franchise agree-
ment, the Casper City Council been exploring Its
options.
At fiat." said Clapp, "vm were only Interested in
finding out if Northam liculd give us a
r pries
or
the gas the Ity buys. We were Just looking for a way to
save some money and to avoid a tae: Inmeau."
The company replied that• by law, it could not
dteertmiaem among its clients. The Council asked If
Northern could buy some of its gas from cheaper
sources elsewhere, but the utility said it .could not.
Northam, also rejected a proposal by which It would
agme that If future price Increases rose beyond a certain
IML (mown as an "upset Omit," the Casper franchise
would be voided.
Now the City Council has tuumhnousiy voted to him ■
consultant to advise Casper on the possibility of finding
another supplier for its gas if the city should take over
the utility's citywide distribution system, as allowed by
a Depression -em law. Newcastle, on the South Dakota
border, has vowed to do likewise, and a dozen smaller
cities supplied by Northern am watching for clues to
their own options.
61 95
i
r-/4",
INFORMAL COUNCIL DISCUSSION
APRIL 10, 1984
Informal Council Discussion: April 10, 1984, at 6:30 p.m. in the Conference
Room of the Civic Center. Mayor John McDonald presiding.
Councilmembers Present: McDonald, Ambrisco, Zuber, Strait, Dickson, Baker,
r a p.m.
Staff Members Present: Berlin, Helling, Jansen, Karr, Franklin, Lundell.
Tape Recorded: Reel 84-C32, Side 2, 95 -End; 84-C33, Side 1, 1-125.
Planning and Zoning Applications:
Rezoning 30 North Clinton Street P to RM -145
This is the Congregate United Church of Christ property.
Hunters Run Subdivision Parts 2 and 3 Public Hearing on Proposed PDH Plan
This is a public hearing only on the final PDH plan. This development was
previously approved in 1980 but the preliminary plat approval has expired.
Rezoning One Acre Tract in Johnson County Al to Z-8405
The change is inconsistent with the Area One policy of the Johnson
County/Iowa City Fringe Area Policy Agreement. The Planning and Zoning
Commission recommended against the rezoning. Council needs to adopt the
Planning and Zoning Commission's recommendation.
Rezoninq 27.7 Acres East of Scott Boulevard CH to RMH
This rezoning is County initiated and recommended for endorsement by the
Planning and Zoning Commission. The rezoning encompasses the existing
Sunrise Village Mobile Home Park.
inance Amending the Off -Street Parkinq Desi
McDonald said this will be discussed as a separate matter.
Ordinance Amending the PDH Plan of Resubdivided Lot 62 MacBride Addition
ar
This amendment will permit the construction of a telephone equipment enclo-
sure. The equipment to be stored in the building includes wiring that has
the voltage equivalency of that found in a household. The applicant has
requested that readings of this ordinance be waived and final consideration
be given.
Approving the Final Plat of Pepperwood Addition Parts 4-7
The developer has taken care of all of the contingencies placed on this
development.
2
Off -Street Parking Reel 84-C32, Side 2
Franklin summarized details of her April 4, 1984, memo on off-street parking
including the history of past alley parking regulations. Franklin said that
the proposal before the Council was the intent of the original standards
adopted in April, 1983. Zuber said that he feels that the proposal is unfair
and cumbersome. Franklin pointed out that only new parking lots would be
subject to the new regulations. In response to a question from Zuber,
Franklin said that amortization measures such as those in the sign ordinance
are not applicable for the parking ordinance. Franklin said that staff
believes that alley traffic is a more important issue in this case than
building density. The number of units on an infill development may be reduced
by this proposal. Zuber noted that the housing market is an important part of
Iowa City business and should not be unnecessarily restricted. Ambrisco said
the proposal would eliminate many enterprises and should not be adopted.
Strait also said that he is opposed to the proposal. McDonald said further
discussion of this matter will take place in the formal Council meeting.
FAUS Program Funding Reel 84-C32, Side 2
Berlin explained that Coralville would borrow from Iowa City's portion of
this area's total amount of FAUS funds. Lundell said that each urban area is
allowed to borrow ahead up to two years of their annual allocation. In
response to Strait, Berlin said that there are two projects, the Dubuque
Street and Melrose Avenue projects scheduled in 1987 that are under FAUS
funding.
Council Agenda and Time
1. McDonald stated that a motion will be needed to remove item 2c(2)
(Wilke's) from the consent calendar and allow for a separate vote.
2. Berlin noted that Jerry Mumford should be commended for his efforts in
CPR training of City staff.
3. Agenda item 6. In response to McDonald, Berlin said that further
information about the garbage storage containers is forthcoming.
4. Agenda item 16. Berlin explained that there is a memorandum of agreement
as well as a letter from Downer concerning the College Block Building
restoration.
5. Baker noted item 2d(1) re the location of a telephone line at Governor
and Church Streets and questioned whether Governor Street would be closed
during construction time. Staff will investigate.
6. Berlin noted that an executive session will be held after tonight's
formal Council meeting.
7. Strait inquired about the Chez Andre's Sunday sales memo. Karr explained
that Chez Andre's gross receipts were reported incorrectly. Due to an
audit correction they now meet the 50% requirement for a Sunday sales
liquor permit.
3
B. Reel 84-C33, Side 1
In response to Strait, Berlin explained that floodways maps were re-
quested for the Gilbert Street area. McDonald said maps will show the
fill requirements for the area and may improve the sellability of the
property.
9. Baker inquired bout the construction at Regina Elementary Grade School.
McDonald explained that a parish hall is being built.
Charter Review Commission Appointments Reel 84-C33, Side 1
After discussion about each of the applicants, the Council decided to appoint
the following to the Charter Review Commission: Davidsen, Roberts, Balmer,
Cain, Welt, Ringgenberg, Goodwin, Matsumoto, Mintzer.
Meeting adjourned at 7:25 p.m.
0