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HomeMy WebLinkAbout1983-02-01 ResolutionRESOLUTION NO. 83-18 RESOLUTION SETTING PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE IOWA CITY TRANSIT FACILITY PROJECT AND DIRECTING ACTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND DIRECTING CITY ENGINEER TO PLACE SAID PLANS, ETC., ON FILE FOR PUBLIC INSPECTION. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: I. That a public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project is to be held on the 15th day of February, 1983, at 7:30 p.m. in the Council Chambers, Civic Center, Iowa City, Iowa. 2. That the Acting City Clerk is hereby authorized and directed to publish notice of the public hearing for the construction of the above-named project in a newspaper published at least once weekly and having a general circulation in the city, not less than four (4) nor more than twenty (20) days before said hearing. 3. That the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project are hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. It was moved by Perret and seconded by Dickson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Balmer x Dickson x Erdahl z Lynch x McDonald x Neuhauser x Perret Passed and approved this 1st day of -February , 1983. ATTEST: �(! C TY CLERK � I r 141CROFILMED BY 11" DORM -"MIC R;LA B'- CEDAR RAPIDS OES MOINES Reealyrsd 8 Approvoni By The Leg_f Clc�- Ifinent R lla � 3 i y3 i a e. J� Sty of Iowa City MEMORANDUM Date: January 31, 1983 To: City Council and City Manager From: John Lundell, Transportation Planner Re: Public Hearing on Iowa City Transit Facility Plans and Specifications A resolution will be added to the February 1 Council meeting agenda which establishes a public hearing on February 15 on the plans and specifications for the Iowa City Transit Facility Project. Depending on the extent of the comments received during review of the plans and specifications by UMTA and the City staff, it may be possible to have the documents finalized in time to hold a public hearing on February 15. If the final documents are not complete, the hearing will be deferred and held two weeks later, February 29. Thank you and please feel free to contact me with any questions or comments. bdw1/2 cc: Don Schmeiser i 141CROFILMED BY 11_ 1 "-JORM'MIC R4ILA B" CEDAR RAPIDS DES MOINES lab r' RESOLUTION NO. 83-19 RESOLUTION TO ISSUE DANCING PERMIT BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing Permit as provided by law is hereby granted to the following named person and at the following described locations upon his filing an application, having endorsed thereon the certificates of the proper city officials as to having complied with all regulations and ordinances, and having a valid Class "B" Beer Permit or liquor control license, to wit: The Crow's Nest, 313 S. Dubuque Street it was moved by Perret and seconded by Dickson that the Resolution as rea e a opted, and upon rolr calT there were: AYES: NAYS: ABSENT: Balmer x Lunch x Erdahl x Neuhauser x Perret x Dickson x McDonald x Passed and approved this 1st day of February 19 83 . Attest: Tty Clerk 4`� j1 I 1 111CROFILMED BY �'- I-JORM-MICROLAB CEDAR RAPIDS DES 1401NES 130 1 RESOLUTION NO. 83-20 RESOLUTION ACCEPTING THE WORK FOR THE PETERSON STREET INTERCEPTOR SANITARY SEWER EXTENSION AS CONSTRUCTED BY DAVE rnuA WHEREAS, the Engineering ngDivvi�sionOhasNcerrtif "I. that the following improvements have been completed in accordance with the plans and specifications of the City of Iowa City, For the Peterson Street Interceptor Sanitary Sewer Extension as constructed by Dave Schmitt Construction'Company of Cedar Rapids, Iowa. AND WHEREAS, maintenance bonds have been filed in the City Clerk's office, NOW THEREFORE BE IT RESOLVED by the City Council of Iowa City, Iowa, that said improvements be accepted by the City of Iowa City. It was moved by Perret and seconded by Dickson that the resolution a_sr_ea_d_be­aJopt_ecT, and upon roll call there were: AYES: NAYS: ABSENT: x _ Balmer x _ Dickson x — Erdahl x Lynch x — McDonald x _. Neuhauser x Perret Passed and approved this 1st day of February , 1983 . ATTEST: %jf � ] y(/ CITY CLERK MICROFILMED BY JORM—MICR#LAB" CEDAR RAPIDS • DES M014ES it.f4lvl?L Y A,.pwr..e..•1 L:qa! Dt:Csm+Hunt K_ zi F3 133 T CITY i CIVIC CEN(ER n OF 410 E. WASHINGTON ST OWA C ITY IOWA CITY, IOWA 52240 (319) 356-5030 ENGINEER'S REPORT January 20, 1983 Honorable Mayor and City Council Iowa City Iowa Dear Honorable Mayor and Councilpersons: I hereby certify that the construction of the improvements listed below have been completed in substantial accordance with the plans and specifications of the Engineering Division of the City of Iowa City. The required maintenance bond is on file in the City Clerk's office. The Peterson Street Interceptor Sanitary Sewer Extension as constructed by Dave Schmitt Construction Company of Cedar Rapids, Iowa. I hereby recommend that the above mentioned improvements be accepted by the City of Iowa City. R ctfully ed, �� Frank K. Farmer City Engineer bj4/4 MICROFILMED BY JORM--MICR+t A9-` _ CEDAR RAPIDS • DES MOINES 133 ........... . n RESOLUTION NO. 83-21 RESOLUTION ACCEPTING THE WORK FOR THE SANITARY SEWER FOR TURNKEY HOUSING PROJECT, PROJECT NO. 22-4, AS CONSTRUCTED BY KNOWLING BROTHERS CONTRACTING COMPANY WHEREAS, the Engineering Division has certified that the following improvements have been completed in accordance with the plans and specifications of the City of Iowa City, For the Sanitary Sewer for the Turnkey Housing Project, Project No. 22-4, in the City of Iowa City as constructed by Knowling Brothers Contracting Company of Iowa City, Iowa. AND WHEREAS, maintenance bonds have been filed in the City Clerk's office, NOW THEREFORE BE IT RESOLVED by the City Council of Iowa City, Iowa, that said improvements be accepted by the City of Iowa City. It was moved by Perret . and seconded by Dickson that the resolution as read be—a20—pt-ecT, and upon roll call there were: AYES: NAYS: ABSENT: x _ Balmer x _ Dickson x — Erdahl •X Lynch x McDonald x Neuhauser x Perret Passed and approved this 1st day of February 1983 . ATTEST: �"CI-T � KP'I ,�Q•f�.-, � CITY CLERK��' JJ� I MICROFILMED BY JORM_.-MICR6L:AB._ ....-A f CEDAR RAPIDS DES MOINES Ro=•Ci4i:(: {L A�]pTAC^_:l iiy 7nzZt .•_nat Q "pac'rnonP I CITY CIVIC CENTER Lf � OF 410 E. WASHINGTON ST IOWA IOWA CITY, IOWA 52240 ENGINEER'S REPORT January 20, 1983 Honorable Mayor and City Council Iowa City Iowa Dear Honorable Mayor and Councilpersons: CITY (319) 356-5000 I hereby certify that the construction of the improvements listed below have been completed in substantial accordance with the plans and specifications of the Engineering Division of the City of Iowa City. The required maintenance bond is on file in the City Clerk's office. The Sanitary Sewer for the Turnkey Housing Project, Project No. 22-4, in the City of Iowa City as constructed by Knowling Brothers Contracting Company of Iowa City, Iowa. I hereby recommend that the above mentioned improvements be accepted by the City of Iowa City. spe tfull u ID ed, Frank K. Farmer City Engineer bj4/5 j i ,.I i j Lf � OF 410 E. WASHINGTON ST IOWA IOWA CITY, IOWA 52240 ENGINEER'S REPORT January 20, 1983 Honorable Mayor and City Council Iowa City Iowa Dear Honorable Mayor and Councilpersons: CITY (319) 356-5000 I hereby certify that the construction of the improvements listed below have been completed in substantial accordance with the plans and specifications of the Engineering Division of the City of Iowa City. The required maintenance bond is on file in the City Clerk's office. The Sanitary Sewer for the Turnkey Housing Project, Project No. 22-4, in the City of Iowa City as constructed by Knowling Brothers Contracting Company of Iowa City, Iowa. I hereby recommend that the above mentioned improvements be accepted by the City of Iowa City. spe tfull u ID ed, Frank K. Farmer City Engineer bj4/5 13� I-0ICROFILMED BY -• _ ^+JIB( M _. F RIVr-MICRI�t=A6R RAPIDS • DES MOINES li 'I i 13� I-0ICROFILMED BY -• _ ^+JIB( M _. F RIVr-MICRI�t=A6R RAPIDS • DES MOINES li RESOLUTION NO. 83-22 RESOLUTION ACCEPTING THE WORK FOR THE DOWNTOWN PARKING FACILITY, RAMP B BLOCK 64 - IOWA CITY, IOWA �jitZi.L. ¢ P' WHEREAS, the Engineering Division has recommended that the improvements covering the Downtown Parking Facility Ramp B, Block 64 - Iowa City, Iowa as included in a contract between the City of Iowa City and nu son Construction Company of Minneapolis, Minnesota dated November 14, 1979 be accepted, an WHEREAS, maintenance bonds have been filed in the City Clerk's office, NOW THEREFORE, BE IT RESOLVED by the City Council of Iowa City, Iowa, that said improvements be hereby accepted by the City of Iowa City, Iowa. It was moved by Perret I and seconded by Dickson that the resolution as readbe adopter, and upon roll call there were: AYES: NAYS: ABSENT: x Balmer x Dickson x Erdahl x Lynch x McDonald x Neuhauser x Perret Passed and approved this 1st day of February 1983 . ATTEST: J% t�,..> CLERK CITY GLERK'�� Received & Approved By The Legal Department - - -- ---- --- .. 1 MICROFIL14ED BY 1JOR M._MICRbLAB' CEDAR RAPIDS DESMORES- II 1.35 CITY0F IOWA CITY CIVIC CENTER 410 E. WASHINGTON ST. IOWA CITY IOWA 52240 (319) 354.18 ENGINEER'S REPORT January 26, 1983 Honorable Mayor and City Council Iowa City, Iowa Dear Honorable Mayor and Councilpersons: I hereby certify that the construction of the improvements listed below have been completed in substantial accordance with the plans and Minneapolis,a Minnesotions prepared b Minnesota. The y Carl a equiredmaintenancecbond sislon file in the City Clerk's office. The Downtown Parking Facility Ramp B, Block 64 - Iowa City, Iowa as constructed by Knutson Construction Company of Minneapolis, Minnesota. I hereby recommend that the above mentioned improvements be accepted by the City of Iowa City. qnK.' ull s Led, Farmer City Engineer FKF:sp 141CROFILMED BY DORM--MICR6L A6'_ j CEDAR RAPIDS DES'MOINES 1 135 1i r I // I I RESOLUTION NO. 83-23 RESOLUTION RESCINDING THE DESIGNATION OF ARMSTRONG'S, INC. AS THE PREFERRED DEVELOPER FOR URBAN RENEWAL PARCEL 64-1a IN DOWNTOWN IOWA CITY i WHEREAS, the City of Iowa City, Iowa, received an offer to purchase Urban Renewal Parcel 64-1a for private redevelopment on May 25, 1982; and WHEREAS, the City Council of Iowa City did by Resolution No. 82-202, adopted on August 3, 1982, designate Armstrong's, Inc. of Cedar Rapids, Iowa, as the preferred developer of Urban Renewal Parcel 64 - la (the department store site); and i WHEREAS, said Resolution No. 82-202 specified that the designation of the preferred developer was subject to the performance of certain conditions; and WHEREAS, the preferred developer has failed to complete the i performance of certain required conditions by the date specified in Resolution No. 82-202; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that the designation of Armstrong's, Inc. as the preferred developer of Urban Renewal Parcel 64-1a is hereby rescinded, and I FURTHER, BE IT RESOLVED that the $5,000 good faith deposit, as t security for the performance of the obligations of the Redeveloper, will be retained as liquidated damages. ; It was moved by Erdahl and seconded by j Dickson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Balmer x Dickson x Erdahl i x Lynch x McDonald x Neuhauser x Perret Passed and approved this 1st day of February 1983. MAYOR�� J ATTEST: ACTING CITY CLERK 7.$3 �r ]lz�rr 177 I MICROFILMED BY I JORMMIC RfI'ILLA9- LCEDAR RAPIDS DES MOINES ! /'ctrl, y RESOLUTION NO. 83-24 RESOLUTION AUTHORIZING EXECUTION OF WARRANTY DEED FOR CONVEYANCE OF THE OLD PUBLIC LIBRARY SITE, LOTS 3 AND 4 IN BLOCK 63, IOWA CITY, IOWA WHEREAS, the City Council of Iowa City, Iowa, held a public hearing pursuant to Chapter 364 of the Code of Iowa on January 18, 1983, for the purpose of disposition of the Old Public Library Site known as Lots 3 and 4 Block 63, Iowa City, Iowa, and WHEREAS, the City Council, after hearing, adopted a resolution authorizing the execution of a purchase agreement with GWG Investments, an Iowa General Partnership, for the purchase of Lots 3 and 4 Block 63 for a total purchase price of $165,000.00, and WHEREAS, said purchase agreement also provides that GVG Invest- ments shall have the option to purchase Lots 1 and 2 Block 63 which is presently a City -owned parking lot within 12 months from the date of conveyance of Lots 3 and 4 aforesaid, and WHEREAS, said agreement further provides that the City shall retain a drive -way easement over the existing drive -way over the easterly portion of Lot 3 for purposes of access to Lots 1 and 2, all in Block 63, until such time as Lots 1 and 2 are no longer used as parking lots by the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that the Mayor and Acting City Clerk are hereby authorized and directed to execute a warranty deed for Lots 3 and 4 in Block 63, Iowa City, Iowa, according to the recorded plat thereof, and reserving therein the drive -way ease- ment referred to in this Resolution. It was moved by McDonald and seconded by Balmer the resolution be adopted and upon roll call there were: AYES: NAYS: ABSENT: x Balmer x Dickson x Erdahl _ x Lynch x McDonald x Neuhauser x Perrot 141CROFILIIED BY J0RM`MICR#L'A13'_ 11 CEDAR RAPIDS • DES HOINES 188 T _ 2 _ Passed and approved this 1st day of February, 1983. ATTEST: !k ' AC IAUTATLU K Received & Approved BY The Legal Department t i MICROFILMED BY -JORM--MICR#GAB'- -- CEDAR RAPIDS DES MOMES M L• -.f STATE BAR ASSOCIATION Form No. 1.1 m..•+••• •asr,.a. I w L.•, un, WARRANTY DEED know all Atu by Tbege Vrvulim corporation,— —. THE IRWS OFEQ OF ME USE City of Iowa City, Iowa, a municipal That -- —--------- __. in consideration of the sure of . _One Dollar and other valuable consideration—_---- in onsideration__.__in hand paid do hereby Convey unto CIVG Investments, an Iowa General Partnership, Grantees' Address:... the following described real estate, situated in Johnson _--County, Iowa, to -wit: Lots 3 and 4 in Block 63, Iowa City, Iowa, according to the recorded plat thereof Seller reserves a drive -way easement over the existing drive -way over the easterly portion of Lot 3. This easement shall be for access only to the existing parking lot on Lots 1 and 2 in Block 63, Iowa City, Iowa, according to the recorded plat thereof. Seller shall have no obli- gation to maintain said drive -way. This easement shall run with the land provided, however, that this easement shall terminate when Lots 1 and 2 as described herein are no longer used as parking lots by the Seller. And the grantors do Hereby Covenant with the said grantees, and successors in interest, that said grantors hold said reel estate by title in fee simple; that they have good and lawful authority to sell and convey the same; that said premises are free and Clear of all Liens and Encumbrances Whatsoever except as may be above stated; and said grantors Covenant to Warrant and Defend the said premises against the lawful claims of all persons whomsoever, except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the described premises. Wordsand phrases heroin including atInowledgment hereof shall be construed as in the singular or plural number, and as masculine at feminine gander, according to the contact. Signed this 1st day of February __,19 83 , STATE OF IOWA. j ` 1 11 A._L1 — _} ss MAYOR, Y OF TOM CITY, IOIVA COUNTY OF )) y�w.rt� " On thi day or . 19_ before ACT NG CITY CLERK, CITY OF IOIVA CITY, IOWA FOR THISEUOW COMSULT YOUR LAW1a i i I s i 1 1 MIM s�STATE OF IOWA, JOIINSON COUNTY, Is: On this 1st day of February A.D. 19 83 , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Nary Neubauser and Dtarian Karr to me personally known, who, being by me duly sworn, did say thetiheyerethe Mayor and City Clerk icipa respectively, of Reid corporation executin%Ahl wifhki and foregoing instrument Io which this Is attached, thatcl a p (no seal has been procured by the saidy corporailion; that said instrument was signed land sealed) on behalf of d O i IIICROFIL14ED BY JORM"'-MICR�LAB'- CEDAR RAPIDS DES MOINES ..s v RESOLUTION NO. 83-25 WHEREAS, the Iowa City City Council and the Iowa City Riverfront Commission desire to protect and preserve the Iowa River as a natural drainageway and source of water; and WHEREAS, the City Council and the Riverfront Commission desire to make the most of the scenic potential and aesthetic values of the Iowa River and the floodplain adjoining it; and WHEREAS, the City Council and the Commission are dedicated to the goal of heightening awareness of the Iowa River as a part of the heritage of Iowa City; and WHEREAS, the Iowa City City Council and the Commission aspire to preserve and increase open spaces and green areas along both banks of the Iowa River; and WHEREAS, the City Council of the City of Iowa City and the Riverfront Commission intend to increase cooperation and participation of all interested parties, public, and private alike, in the management and development of the Iowa River and floodplain. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, AS FOLLOWS: 1. 'That the Model Conservation Easement be adopted as a guideline and a mechanism to encourage private cooperation in conserving both banks of the Iowa River. 2. That members of the Iowa City Riverfront Commission be authorized to i acquaint landowners, with property abutting the Iowa River, with conservation easements and to encourage these landowners to participate in this program. It was moved by Perret and seconded by Balmer that the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x x — x i — X x - x — Passed and approved this 1st Balmer Dickson Erdahl x Lynch McDonald Neuhauser Perret day of February , 1983. II —WW1 . I _ ATTEST: %11na�.eix� CITY CLERK d' Received & Approved By The Legal Department I� MICROFILMED BY 1 1.. JORM-MICR46CAB-- CEDAR RAPIDS DES MOMES 1 i 189 s i -J L.. MODEL CONSERVATION EASEMENT KNOW ALL MEN BY THESE PRESENTS: , hereinafter called GRANTORS, in consideration of $1.00 and other valuable consideration, hereby grant and convey to the CITY OF IOWA CITY, hereinafter called CITY, a conservation easement over GRANTORS' real property located in Johnson County, Iowa, and more particularly described as follows: LEGAL DESCRIPTION WHEREAS, Chapter 111D, Code of Iowa (1981) provides for conservation easements in order to preserve natural habitats and scenery; and WHEREAS, the GRANTOR and the .CITY recognize the scenic, natural and aesthetic value of the property in its present natural state, and have a common purpose in conserving scenic beauty, natural resources and outdoor recreation. NOW, THEREFORE, the GRANTOR, for and in consideration of the mutual concerns and convenants, terms, conditions and restrictions herein contained does give to the CITY, its successors and assigns, a conservation easement in perpetuity over the protected property consisting of the following: i i 1. The right of view of the protected property from the river in its natural, scenic, and open condition; 2. The right of the CITY, in'a reasonable manner and at reasonable times, to enforce by proceedings at law or in equity the covenants hereinafter set forth, including but not limited to the right to require the restoration of the protected property to the condition at the time of this grant. The CITY, or it successors or assigns, does not waive or forfeit the right to take action as may be necessary to insure compliance with the covenants and purposes of this grant by any prior failure to act. AND in furtherance of the foregoing affirmative rights, the GRANTOR makes the following COVENANTS: Without prior express written consent from the CITY on the protected property; 1. There shall be no construction or placing of buildings, camping accommodations or mobile homes, fences, signs, billboards or other advertising material, or other structures; 2. There shall be no filling, excavating, dredging, mining or drilling, removal of top soil, sand, gravel, rock, minerals or other materials nor any building of roads or,parking lots or change in the topography of the land in any manner; 3. There shall be no removal, destruction or cutting of trees or plants, or disturbance. or change in the natural habitat in any manner except for the routine maintenance of trees or plants and the removal of decayed or damaged vegetation, including weeds and noxious plants; 4. There shall be no dumping of ashes, trash, garbage or other unsightly or offensive material, and no changing of the topography through the placing of soil or other substance or material such as landfill or dredging spoils; 5. There shall be no manipulation or alteration of natural water courses, or activities or uses detrimental to water purity. The GRANTOR, the GRANTOR'S heirs and assigns, agree to pay any real estate taxes or assessments levied on the protected property and to relieve the CITY from responsibility for maintaining the protected property. Except as expressly limited herein, the GRANTOR and the GRANTOR'S heirs and assigns, reserve all rights as owner of the protected property including the right to use the property for all purposes not inconsistent with this grant. The covenants agreed to in the terms, conditions, restrictions, and purposes imposed with this easement shall be binding upon not only the GRANTOR but also his/her agents, personal representatives, heirs and assigns, and all other successors to human interests and shall continue as a servitude running in perpetuity with the protected property. i MICHU1 WILD BY ' (' JORM-'MICR6LA:B CEDAR RAPIDS DES MC 1.4 I i� 2 r� The CITY covenants that this conservation easement in no way grants the public right to enter said property for any purpose. Signed this day of 19_ STATEOF ....................... _................ .................................... _............... COUNTY. ss: On this ........... _........... day of ........................................... _....... 19.........., before me, the undersigned, a Notary Public in and for said County, in said State, personally appeared ............ ................... _.........._......_....__..........._......_.._..........._- ........................ .............. ...................... _..... ...................... .... ................................ _........... .................. .......................... �._ to me known to be the identical persons named in and who executed the foregoing instrument, and acknowledged that they executed the some as their voluntary act and deed. ........ .._................ Notary Public in and for said County. STATEOF ............................................. ...... ..................... _... ................ COUNTY, ss: On this ........... _........... day of ............... _ ........................ ....... Ig.........., before me, the undersigned, a Notary Public inand for said County, in said State, personally appeared............................................................................_.............._.._._ --......................_._..._.._.._.._......_......................_.............._.....................................---.................................................................._ to me known to be the identical persons named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. Notary Public in and for said County. STATEOF ....... ................................. ......_..._......_......_._...................COUNTY, ss: On this ... _...................dey of. .............. _.................... ........... I 19.........., before me, the undersigned, a Notary -Public inand for said County, in said State, personally appeared .................................................... »...................................... ... _._ _..................................................... ._.._..... ...... o ...- ba e I I - h - a id - -d entical - - - - -- - -- io moeknoo wn fporsons nemod in end who oxecuiod iho forogoi instrument, and acknowledged that they executed the some as their voluntary c and deed. —...................... Notary Public in and for said County. Rceulvrc! A Appivwpo By TI a Lags! Depallmenf J MICROFILMED By JORM---MICR46CAB- -- CEDAR RAPIDS DES MOIRES i t 189 Y ity of Iowa City' MEMORANDUM Date: January 26, 1983 To: Iowa City City Council � > ' From: Diana Lewis, Chair, Iowa City Riverfront Commissions �rr� Re: Model Conservation Easement The Iowa City Riverfront Commission has selected the use of conservation easements as a mechanism to encourage private cooperation in maintaining a vegetative buffer along both banks of the Iowa River. The conservation easements are voluntary measures and represent no cost to the City other than staff assistance. A conservation easement is an agreement between the property owner and the City whereby the owner retains ownership of the land but agrees to maintain the area in its undeveloped, natural state. Such a restriction does not prevent the owner from using his land for purposes consistent with the restriction, nor does it permit the general public access to the land for any purpose unless the landowner and the City agree to such in the language of the easement. With conservation easements, the City enjoys the advantage of the preservation of openspace while maintenance responsibilities remain with the landowner and the property owner is awarded tax benefits. The conservation easements are negotiated with each landowner and, therefore, can be tailored to the needs and desires of both parties. At the December 21, 1982, Council meeting, the City Council was asked to consider the recommendation made by the Riverfront Commission that the Council adopt conservation easements as a tool to implement the vegetative buffer portion of the buffer and trail proposed in the Stanley Plan. The Riverfront Commission is now requesting that the Council approve a resolution endorsing the Model Conservation Easement and authorizing Riverfront Commission members to acquaint landowners with conservation easements and to encourage them to participate in this conservation program. Attached are copies of the resolution, of the Model Conservation Easement and of a publication entitled, The Landowner's options, prepared by the Iowa Natural Heritage Foundation. This booklet describes conservation easements as well as other methods of protecting Iowa land. The Iowa City Riverfront Commission encourages the Council to adopt the Model Conservation Easement as a method of preserving and protecting one of Iowa City's most valuable resources, the Iowa River. bdw3/4-5 Enclosures cc: Neal Berlin, City Manager Don Schmeiser, Director, Department of Planning & Program Development MICROf IEnED BY 1 1. _-JORM .-MICRdL'AB" JJJ CEDAR RAPIDS DES Id01AE5 I J 18 L�. Prior Granting of a Conservation Easement As conservation easements are binding on all subsequent owners of the land, a landowner may grant a conservation easement regulating the future use of the property before transferring ownership. ISee The Conservation Easement, page 4.) The landowner may count the loss in market value due to the granting of the conservation easement as a charitable deduction for income tax purposes, but.on the same count, they would expect a lower price if a sale is being considered. If the land is donated to a qualified charitable organization or governmental agency, they may still take the value of the land after the easement as a charitable deduction. See Donations, page 11.) The prior granting of a conservation easement provides an excellent way to control the future of the land if it is to be sold on the open market. However, in most cases it might provide more protection than is necessary when the land is to be transferred to an established private or public conservation agency which is experienced in acquiring and managing land. The use of other types of limiting conditions can be considered in those cases, as well as when a recipient of a conservation easement is not available. Deed Restriction Restrictive covenants guiding the future use of the property may be placed in the deed at the time of transfer. These restrictions can be much like those contained in conservation easements or in mutual covenants; however, they may prove to be less permanent than conservation easements for they are limited by the doctrine of changed circumstances. In other words, the court may refuse to enforce the restriction if it no longer. seems possible to achieve the benefit sought when the restrictions were created. In addition, deed restrictions are subject to 614.24, Code of Iowa, 1981, and would be effective for only 21 A years unless re-recorded. Deed restrictions also vary from conservation easements in that there is usually nota third party assuming the monitoring and enforcement responsibility. Deed restrictions may be appropriate if the land is being transferred to another landowner or to a landholding agency. The question of enforceability is a key when considering deed restrictions. Depending on the circumstances, there may be limitations on who can enforce the restrictions and for how long. If a landowner conveys their land, inserts restrictions in the deed and retains no land nearby, then even they may not be able to enforce the restrictions against the subsequent owners of the land. If the landowner conveys part of their property and burdens it with restrictions, then their successors in title to the remaining property may enforce the restrictions against whomever should own the covenanted property in the future. In this case, the right to enforce rises from the fact that the presence of the restrictions on the transferred property benefit the landowner's remaining land. Deed restrictions may be imposed in another way if the land is to be given away to a landholding agency. A landowner can transfer property to an intermediary conservation agency 19' /11 1 1lag f MICROFILMED BY 1 l_ -JORM-'MICROLAB 1 CEDAR RANDS •DES MOINES i I i or organization which owns other land in the, area, then transfers title to the permanent landholding agency. The intermediary agency inserts restrictive covenants in the deed at the time of the second transfer. This seemingly complex transaction Is performed for good reason. By inserting the restrictions, the conservation agency holds the right to enforce the covenants, and presumably the agency will be long-lived and will be interested in seeing that the restrictions are not broken. The case for enforcement is strong as long as the intermediary agency continues to exist and the ownership remains the same. As in the case of all alternatives the financial implications of the use of deed restrictions must be considered. Deed restrictions will affect the market value of the land if.they significantly limit its development potential. Thus, the presence of restrictions may lower the price if the property is to be sold or the value of the gift if the land is donated to a governmental or charitable agency. It is important to note that the Internal Revenue Service does not allow one to claim the loss in value resulting from the Imposition of deed restrictions as a charitable deduction. Because this is so, a landowner may choose to donate the land to an Intermediary agency or organization which then inserts the deed restrictions and transfers title. The landowner is able to claim an income tax deduction for the unrestricted value of the land, provided that the intermediary agency is of the type that qualifies him to do so. - 20 'See AppeWix A regarding clurirdble dedmiluns. 14?4 TRANSFER OF TITLE WITH CONDITIONS ATTACHED Whether by sale or donation, the outright transfer of land without strings attached is very straightforward.. Unconditional transfer does, however, lack the legal means of specifying the future uses of the land. In many instances this may be of no concern: if the agency is likely to be long-lived and has proven itself faithful to its given purposes, or if it seems advisable that the agency not be restricted in its use of the land. On occasion, however, it may seem wise to place limiting conditions on the use of the land at time of transfer. Limiting conditions may also be imposed if the land is to be sold on the open market and if the landowner wishes to influence its future use and hence protect its natural attributes. These conditions are subject to Section 614.24, Code of Iowa, 1981, and would be effective1or only 21 years unless re-recorded. l 111CRor ILMED BY ; 1.JORM MICROLAB 1 CEDAR RAPIDS • DES '101NES I i' f 17 149 U1 agencies must use the latter approach." County Conservation Boards must seek approval of the County Board of Supervisors but could spend up to one quarter of their annual appropriation limit over a 10 year period on an installment purchase. In either case, the landowner and the buyer can negotiate for use of the land and for the responsibility for payment of property taxes until the sale is complete. The financial advantage to the landowner is in spreading the income over a number of years. In doing so, they can in some circumstances spread the taxable capital gains over a period of years, thus minimizng the amount of tax that must be paid. The advantages to the purchasing organization or agency are that it has to pay only a fraction of the entire cost at first and that it may not have to worry about maintenance of the property until the sale is complete, or it may take management responsibility immediately, depending on the terms of the documents between the landowner and the purchaser. Sale with a Reserved Life Estate A landowner may sell their property to a landholding agency with a reserved life estate so that they and their family can continue to use the land during their lifetime and/or the lifetimes of other members of their immediate family. The landowner would continue to pay real estate [axes on the land while they have use of the property. The federal Income tax capital gains implications of a sale with a reserved life estate would, of course, depend on whether the sale was at fair market value, at less than fair market value or in installments. "Federal and stale agencies cannot buy on an installment plan because they cannot pledge the aedn of the federal a state government. Tory cart he v r. Purchase a specific parcel a portion of the total land area each year and agree to purchase the remaining parcels on a convacNal basis. In eflect they would eaelclse an annual 16 option to Purchase a specific portion of an area. 1147 Conditional Transfers Deeds granting conditional transfers also contain conditions guiding the use of property, but allow the landowner to name a party to which the title should transfer if the landholding agency does not use the land in the manner set forth in the conditions. Thus, the conditions may be similar to deed restrictions, but they carry more force; breaking the conditions may mean loss of title rather than the enforcement of use restrictions. A conditional transfer may be constructed in one of several ways. The deed may be worded so that the original owner and their heirs reserve the right to reassert ownership at their own choice if the landholding agency disobeys the conditions: Or, the transfer may be in the form of a "possibility of reverter", in which case title would revert automatically to the landowner or their heirs. Lastly, the landowner could choose to name another charitable landholding organization which would automatically assume title if the conditions for use were no longer being fulfilled. These conditions are also subject to the provisions of Section 614.24, Iowa Code, 1981, and would be effective for only 21 years unless re-recorded. Conditional transfers may enable the landowner to claim the value of the gift as a charitable deduction if the gift is given to a qualified recipient." However, if the landowner inserts conditions such as discussed here, the appraiser would have to consider the restrictions on use when determining the value of the gift of land. The landowner wishing to maximize the income tax deduction may want to transfer the unrestricted land to a qualified agency which would then impose the conditions and convey the land to the agency which is to own the land. 'By Internal Revenue Service regulations, the recipient must be a g9oo�vccrnmentaI a envy or a publicry-supponed charity In Order for the Idndowirtr o claim the value of the gift as a deduction. See Append. A regarding Smvable annual deductions. i 141CROFILMED BY i 1 --JORM-MICRdLA13 % CEDAR RAPIDS • DES MOINES I r � r f 21 ieq 9 22 There are certain legal limitations on the use of conditional transfers as a permanent land protection technique. Thus, most conditional transfers which are created for conservation purposes would qualify as exceptions. Another aspect to be considered is that courts tend to disfavor conditions generally. Therefore, they cannot be relied upon to impose restrictions on the use of land in perpetuity, as can other means of land use restriction. Additionally, if the property originally vested in the conservation agency could be divested if a condition were broken and taken by third party, it is subject to the provisions of Section 558.68, Code of Iowa, 1981, known as the Iowa Rule Against Perpetuities. Basically, this provides that if there is any possibility that the property will rest in an individual or agency beyond the lifetime of the persons alive at the time of conveyance, plus 21 years, then the transfer is void. Conditional transfers are an appealing way of regulating future use because they are created with ease, particularly if an intermediary agency is not involved. Yet they also provide strong guidance for the use of the property; loss of title is a severe penalty for breaking the regulations set on use. However, practical considerations become an important aspect when analyzing the utility of this technique. Would the heirs take the initiative to reassert ownership if necessary? If the land reverted automatically to them, would they treat it wisely? If an intermediary or second agency should be involved, is there one which is willing to participate and which would act responsibly in the future? These are considerations which must be Judged against the facts of the particular situation. l8q Bargain Sale The bargain sale is an alternative that circumvents somewhat the disadvantages of a sale at fair market value. In a bargain sale the landowner sells their land to a government agency or a publicly supported charity for a price less than fair market value. Because the selling price is lower, the landowner is more likely to find a landholding agency willing to purchase the land. The bargain sale may also be financially advantageous to the landowner. They not only receive some money for their land but they can also claim an income tax deduction. The Internal Revenue Code allows them to deduct as a charitable contribution the difference between the bargain price received and the fair market value.` The cash benefit of the deduction can help compensate for the dollars foregone by selling at less than fair market value. Also, by selling at less than fair market value there would be a smaller capital gain to be taxed. Installment sale An installment sale is another alternative which may be advantageous to both the landowner and the purchasing agency. An installment sale involves an agreement between the landowner and the purchaser whereby the landholding agency pays for the land in annual installments. Or, it may be that the landholding agency buys a portion of the land each year, with an option to purchase the remaining tracts in years thereafter. Municipalities where authorized by appropriate ordinance or stale law, and private organizations may use either method, but the state and federal 'The fwpient must be a governmental agency or pub6Cly-sup tied prwale Chanty for the IandoNtiCr to Balm the income Im dlson fW a Charitable Contribution. See A pendia A for details about Charitable Conmbutions of gifts of land, IIICRof ILnED BY CRO LAB EOR RAPIDS DES I 14 SALE A landowner may need or prefer to sell their property yet wish to see it protected. To accom- plish this purpose, restrictions can be placed on the use of the property to secure the preservation of the land. The land can then be sold on the open market, an option which is discussed in the section "Transfer of Title With Conditions Attached", page 17. Where the landowner sells a property and imposes certain restrictions on the use of the property, the effectiveness of those use restrictions would be affected by Section 614.24, Code of Iowa, 1981, which creates a 21 year cutoff period. They may, however, own land which they think should be sold to a conservation organization or agency. There are landholding agencies which do have funds for outright purchase of land that has special attributes, such as prairie, forest, or wetland, or that can be utilized for some agency purpose, such as a wildlife sanctuary or recreational land. In considering a sale to such an agency, the landowner has the option of selling at fair market value, at a "bargain" price, or in installments. Sale At Falr Market Value Sale at fair market value needs little explanation, but two thoughts are worth keeping in mind. The desire to sell at fair market value is often hampered by the fact that most landholding agencies have limited funds available for the purchase of land and must be very particular about their choices. Also, if the land is Sold for its full value and if the property has appreciated since its purchase, the seller will be liable for income tax on the capital gain. This can significantly affect the net profit of the sale. IV. DEDICATION Dedication of unique natural lands and cultural sites by landowners as a "state preserve" is provided for by state law (Chapter I I 1 B, Code of Iowa). An owner of such a piece of property could, if approved by the State Advisory Board for Preserves, dedicate the area as a state preserve but retain ownership. Dedication as a state preserve is one of the highest forms of protection provided for such lands. Once dedicated, the area is held in trust "and shall not be alienated except to another public use upon a finding by the board (State Advisory Board for Preserves) of imperative and unavoidable public necessity and with the approval of the State Conservation Commission, the General Assembly by concurrent resolution, and the Governor." The State Advisory Board for Preserves is a seven -member board with six members appointed by the Governor. The Director of the State Conservation Commission is the seventh member. It has available to it a staff member of the Iowa Conservation Commission — the State Ecologist. The State Advisory Board for Preserves is concerned with the protection of unique, scenic and representative samples of Iowa's natural and cultural heritage. Not all natural lands will qualify for dedication as a state preserve. There are some 60 state preserves in Iowa both publically and privately owned. The property owner, in dedicating an area as a state preserve, agrees in advance to certain conditions or "Articles of Dedication". The Articles outline the landowner's interests and those of the State Advisory Board for Preserves. They may include "restrictions on development, sale, transfer, method of management, public access, commercial or other uses", provisions for violation of terms, and respective Jurisdictions of the owner and Board. 1 i 141CROFILMED BY I. --DORM MIC R6LAB` CEDAR RAPIDS DES 11015ES / I � The Articles must be mutually agreed to before the area can be considered for formal dedi cation. The Articles of Dedication, when agreed to and the area is designated, will be recorded in the County Recorders Office and remain with the property even though ownership may change. Like the conservation easement, this approach may offer some financial benefits in that place- ment of restrictions on the deed may constitute a donation since the owner is in essence giving up certain rights and their associated values. The dedication of an area may reduce the market value, thereby lowering death taxes. The loss in market value may also be entered as a charitable deduction in calculation of income tax. Lowered gift tax and property tax opportunities may also result. Donation With A Reserved Life Estate A landowner may donate their land and retain use of all or part of the donated land during their lifetime and/or the lifetimes of other members of their immediate family. By doing this, they know that the gift has been accepted by a recipient suitable to them, yet they can continue to use the land. This type of donation is accomplished by giving the recipient a deed which includes a provision allowing lifetime use of the land by the landowner or others. The donor usually must pay real estate taxes on that portion of the land retained for his or his family's use. A transfer of property with a reservation of a life estate can result in the value. of that property being included in the gross estate for federal estate tax purposes. In terms of possible income tax benefits, the value of the gift could qualify as charitable deduction.'. From the point of review of the recipient of the gift, donation by devise or with reserved life estate may be preferable if the agency would like to own the property but does not wish to accept the responsibilities of immediate ownership. 4 -The value of the gill cannot include the value or the life estate, as determined from the Internal Revenue Service's actuarial lablei. The enervation of Rete than one life estate can slgnibcanty reduce the ' possible Iledme tax deduction. The le!'99�1l1 ations that govern tie amount that can be taken as a Charitable deduction each year are tie fame as thoe which appy to outright donations and conservation easements. See Appendu A regarding charitable deductions. 13 24 req s 1eq I i 14ICROr ILnED BY -""'JORM MICR46LA8 1 CEDAR RAPIDS a DES 1.1011IES � i I 12 Under some circumstances a landowner may wish to donate their land but not give up their use of it immediately. In this case, two options exist: donation by devise or donation with reserved life estate. Donation by Devise A gift of land by devise may be made at the time of death simply by making the gift in a will. Discussing the gift with the proposed recipient before writing the will can help one determine whether the choice of recipient is realistic. The advantage to a donation by devise is that the landowner retains full use and control of the land until his or her death. Financially, the landowner does reduce estate taxes by removing the land from the estate; but obviously, does not benefit from the income tax savings possible from charitable gifts made during their lifetime, nor are they free of the responsibility of paying real estate and income taxes during their lifetime. If land is devised, that land will be removed from the gross estate of the testator; however, the devise could qualify as a charitable transfer. This would entitle the estate to a deduction equal to the value of the property. The risk involved with making a gift by devise is that the named recipient or recipients might not wish to accept the gift at the time the will is probated. Objectives and financial circumstances can change with the passage of time. If the landowner definitely wishes the land to be owned by a conservation agency, they should draft their will carefully with this risk in mind. A way of avoiding this risk entirely is by donating the land but reserving a life estate. ieq V. LEASES One other option is available to the land- owner: that of granting a long-term lease to a land management agency. The lease would allow for unrestricted and exclusive use of the land by that agency for the given number of years, and it would be recorded with the County Recorder. Even if rental payments are not received for the use of the land, there may be other financial incentives which accompany the leasing of land. Although it is not possible to take as a charitable deduction for the value of a lease which is donated, any impact of the lease on the value of the land would be taken into account when estate taxes are calculated. Certain use restrictions can also be incor- porated within the lease. Further, provisions could be contained that if the lessee conservation agency or organization) does not use the property as directed, that the lease would be automatically terminated, and all of the lessee's interest in the property would thereafter be forfeited. The lease provides an alternative for those who may not wish to transfer their land to a conservation agency or organization but who want to see it used or protected by such a group for a period of years. 1 141EROFILMED BY l _.l -"DORM-MIC RbLAB'- CEDAR RAPIDS DES 1401.its 25 M J ....... ......... .......... . V1. REAL PROPERTY PAYMENT DONATIONS OF STATE INHERITANCE Outright Donation TAXES A donation of land is usually the simplest way The 69th General Assembly amended the to arrange outfight transfers of title because no 1981 Code of Iowa to provide that Iowa financing or negotiations about price are neces- Inheritance Tax may be paid by transfer of sary. The landowner need only obtain approval property. The transfer may be made to the State from the agency or organization to which it will be given, then deed the land to that recipient. or to any political subdivision of the State to be used for public purposes. The property transferred Donations, by definition, rely on the fact that does not have to have been in the estate of the the landowners are willing to protect their land at decedent. If it was in the estate of the decedent, the cost of giving it away without direct financial the value is that used for inheritance tax purposes. compensation. However, there may be tax bene - If not, the value must be determined by NIS flowing from the gift which help offset some agreement between the Executive Council and of the loss. The financial benefits of donating land the taxpayer. The changes encourage the transfer are obvious. The donor need no longer pay the t of fee title to property which is suited for real estate taxes, their income taxes are reduced, conservation purposes. Because of the newness of and their estate is reduced in size so that their the legislation, it is impossible to determine estate taxes will diminish correspondingly.* In whether the transfer of an interest in property, addition, In the cases where the recipient of the such as a conservation easement, would quality donation is a governmental agency or a publicly to be used to pay part or all of the tax. The supported private charity, the donor can also legislation does not on its face require that the claim an income tax deduction of the market property transferred be the entire fee title and, value of the land as determined by a qualified therefore, it is entirely possible that the transfer of appraiser." In some cases, the landowner may a conservation easement would qualify. want to donate the land in Installments to maximize the benefit of the deduction. Landholding agencies review proposed gifts of land carefully, for they are becoming increas- ingly aware of the financial and management responsibilities that come with the ownership of land. They must look upon gifts of land In light of their ability to care for and use the land properly, and some encourage the establishment of endow- ment funds when a donation of land is made to provide funds to help meet the management Costs. 26 'See Appendix a re0main9 estate taxes "See Appendix A regaraing cwntiibie deductions 1 1 190 MICROFILMED BY --JORM -MlCF?6LAB CEDAR RAPIDS - DES MOINES III. OPTIONS INVOLVING THE TRANSFER OF TITLE Some landowners may wish to give or sell important open space lands to a governmental or private conservation agency or landholding body. This may be for a number of reasons: the thought that the land should be used by the public or by a certain group, that a landholding agency is better able to manage or protect it than an individual landowner, or that the taxes have climbed too high for the landowner to continue to own and protect it themselves. Whatever the reason, there are a number of ways the donation or sale may be executed, each with varying financial and personal implications for the landowner. The challenge is to find the way which best suits both landowners and the agency which Is to acquire the land. E VII. AGENCIES INTERESTED IN ACQUIRING TITLE OR INTERESTS IN LAND In the case of many of the protective arrange- ments discussed here, it is the presence of a strong landholding agency which guarantees that the land is indeed protected in the manner the landowner envisions. The following is a brief listing of some of the landholding agencies and organizations which are active in Iowa. Each has its own interests, its own areas of responsibility. PRIVATE, NON-PROFIT ORGANIZATIONS Private, non-profit organizations in Iowa do acquire land or interests in land. The significance of a property is judged according to how well the potential uses of the land fit within the objectives of the organization. Private organizations can accept easements within their common and statutory law authority. That is to say, the private organizations must own land in the vicinity that will be benefited by the placement of an easement on the property in question. As in the'case of acquiring land, when private organizations accept easements, they appreciate receiving contributions which can help cover the future monitoring and enforcement expenses that may be associated with an easement. Whether or not the organization would wish to involve itself in conditional transfers and the Insertion of deed restrictions will depend entirely on the property being considered and its relation to the organization's interests. f- 27 1� I4ICROF IL14ED BY I -"DORM-MICROLAB J ' CEDAR RAPIDS •DES t401ACS t I 1 I 1 .Tf , 28 IOWA NATURAL HERITAGE FOUNDATION 505 Fifth Avenue Insurance Exchange Building, Suite 830 Des Moines, IA 50309 SIS -288.1846 The Iowa Natural Heritage Foundation has been organized to work for the preservation and long- term wise management of Iowa's natural resources. It has broad-based support from the Governor of Iowa, from state government leaders, and from leading private citizens from all parts of the state. The Foundation's role is to act as a catalyst and facilitator, workingjointly with government at all levels and with private groups and individuals on projects that serve both short - and long-term goals. The Foundation has three general programs to achieve its goal: Land Preservation and Stewardship, Public Education and Awareness, and Long -Range Planning and Research. IZAAK WALTON LEAGUE OF AMERICA, INC. Iowa Chapter Rt. 1, Box 2Y Polk City, IA 50226 515-9846013 The objective of the "Ikes" is to promote, directly and through chapters, true sportsmanship and the principles of a broad, practical conservation program. In addition, the Izaak Walton League National Endowment does have limited funding available, nationally, to assist in specific instances on a temporary repayment basis. TRUST FOR PUBLIC LANDS 82 Second Street San Francisco, CA 94105 415-495-4014 A national private non-profit land acquisition organization oriented to urban open space and recreational lands. rag The second difference is that mutual covenants may not be as lasting as the restrictions contained in an easement. By their legal nature they would be subject to the doctrine of changed conditions; a court would be able to refuse to enforce the covenants if it felt that it is no longer. possible to achieve the benefits sought when the covenants were imposed. Under Section 614.24 of the Code of Iowa, 1981, use restrictions of this nature are not enforceable beyond 21 years after the date the instrument is recorded unless the instrument` is re-recorded. Lastly, there are the financial considerations. These covenants could receive a similar treatment as do easements when the property taxes and estate taxes are calculated. The local assessor may consider them, and the appraiser may take them into account when determining the value of an estate at time of death. The imposition of these covenants, however, does not enable a landowner to claim the loss in market value as a charitable deduction on their income tax return. While not as strong as conservation easements, mutually restrictive covenants provide an alternative for those instances when easements may not be feasible or necessarily desirable. They do, however, require the presence of the right combination of people and circumstances. 141LRDFILI4ED BY JORM-MICR6LA13 - 1 CEDAR RAPIDS •DES I40I4E5 I i �1 9 lag J 28 IOWA NATURAL HERITAGE FOUNDATION 505 Fifth Avenue Insurance Exchange Building, Suite 830 Des Moines, IA 50309 SIS -288.1846 The Iowa Natural Heritage Foundation has been organized to work for the preservation and long- term wise management of Iowa's natural resources. It has broad-based support from the Governor of Iowa, from state government leaders, and from leading private citizens from all parts of the state. The Foundation's role is to act as a catalyst and facilitator, workingjointly with government at all levels and with private groups and individuals on projects that serve both short - and long-term goals. The Foundation has three general programs to achieve its goal: Land Preservation and Stewardship, Public Education and Awareness, and Long -Range Planning and Research. IZAAK WALTON LEAGUE OF AMERICA, INC. Iowa Chapter Rt. 1, Box 2Y Polk City, IA 50226 515-9846013 The objective of the "Ikes" is to promote, directly and through chapters, true sportsmanship and the principles of a broad, practical conservation program. In addition, the Izaak Walton League National Endowment does have limited funding available, nationally, to assist in specific instances on a temporary repayment basis. TRUST FOR PUBLIC LANDS 82 Second Street San Francisco, CA 94105 415-495-4014 A national private non-profit land acquisition organization oriented to urban open space and recreational lands. rag The second difference is that mutual covenants may not be as lasting as the restrictions contained in an easement. By their legal nature they would be subject to the doctrine of changed conditions; a court would be able to refuse to enforce the covenants if it felt that it is no longer. possible to achieve the benefits sought when the covenants were imposed. Under Section 614.24 of the Code of Iowa, 1981, use restrictions of this nature are not enforceable beyond 21 years after the date the instrument is recorded unless the instrument` is re-recorded. Lastly, there are the financial considerations. These covenants could receive a similar treatment as do easements when the property taxes and estate taxes are calculated. The local assessor may consider them, and the appraiser may take them into account when determining the value of an estate at time of death. The imposition of these covenants, however, does not enable a landowner to claim the loss in market value as a charitable deduction on their income tax return. While not as strong as conservation easements, mutually restrictive covenants provide an alternative for those instances when easements may not be feasible or necessarily desirable. They do, however, require the presence of the right combination of people and circumstances. 141LRDFILI4ED BY JORM-MICR6LA13 - 1 CEDAR RAPIDS •DES I40I4E5 I i �1 9 lag J Mutual covenants Occasionally there are situations where a conservation easement may not be feasible, either because there is no recipient agency interested in accepting the easement or because the landowner does not want to enter into an agreement with an agency or organization. In such a case, it would be possible to limit the future uses of the land through the imposition of mutual covenants if there are several landowners in the immediate area interested in entering Into mutually restrictive agreements." Neighboring landowners having a common conservation interest may sign an agreement containing mutually beneficial protective covenants controlling the future of their land. The agreement would be recorded in the County Records and would be binding upon subsequent owners just as an easement would, and the types of restrictions imposed would be much the same. These covenants would then be enforceable by any of the landowners who entered into the mutual agreement or by any future owners of the land. These covenants differ from conservation easements in three respects. First, the nature of the enforcer is quite different. It would be a person or a group of people rather than a conservation agency or organization. Though the presence of any restrictions of which others are aware is likely to restrain forbidden acts by the owners, enforcement would ultimately depend on the determination and resources of an individual. Normally enforcement of the terms of the covenants by the neighboring landowner is not legally mandatory. rather, it is optional. •�egalr ofspeaking.of PrOPe contests krsovn as equitable ser lodes. nts as Well as easements fit Within me 9 e9 N M°PeRI' 18q NATIONAL AUDUBON SOCIETY 950 Third Avenue New York, NY 10022 212.832-3200 The National Audubon Society prefers to acquire properties that protect special wildlife habitats. Local Audubon chapters and naturalist societies may be interested in acquiring land if the property can be used for their specific purposes and if they feel that they are able to undertake the management responsibilities that acture with the ownership of the land. Since they are organi- zations functioning on volunteer initiative, the decision to acquire land is one that is made carefully. THE NATURE CONSERVANCY Iowa Chapter 424 Tenth Street Des Moines, IA 50309 515-244-5044 The Nature Conservancy is a national organization interested in acquiring properties that include unique flora and wildlife habitats and areas that preserve the diversity of Iowa's natural features. In addition to outright acquisition, The Nature Conservancy may accept very restrictive, "forever - wild", conservation easements on properties near those it owns. LOCAL LAND TRUSTS Land trusts are private, non-profit landholding organizations which can be established by citizens interested in protecting open space and, if appropriate, making it available for regulated public use. They provide an alternative to public ownership if local private ownership seems appropriate. Once they own the land, land trusts may acquire conservation easements on surrounding properties. j NICRorlLMED BY ('- -DORM- MIC R46LA 13* CEDAR RAPIDS • DES MOINES I 29 tat, J 30 EDUCATION INSTITUTIONS Colleges and universities in Iowa may be interested in acquiring land or the right to use it if its use would benefit their educational programs. GOVERNMENT LANDHOLDING AGENCIES A number of governmental agencies that have authority to manage land do acquire title and interests in land. Just as in the case of private organizations, their interest in a proposal will depend on the objectives of the agency, its practical ability to finance and/or manage the land, and the significance of the property. Unlike C private organizations, governmental bodies may accept easements regardless of whether they own land in the immediate area. FEDERAL AGENCIES FISH AND WILDLIFE SERVICE United States Department of the Interior Kansas City Area Office 2701 Rockcreek Parkway North Kansas City, MO 64116 816.374.6166 The Fish and Wildlife Service acquires land of sufficient importance for wildlife habitat to set aside as National Wildlife Refuges. The Service has the authority to accept conservation easements if the land involved endangered or threatened species, are of sufficient sizes to support significant segments of a biotic population, or are continguous to an existing unit of the National Wildlife Refuge System. led? If the land is to be given to an individual prior to death, federal gift tax may be due. The lower value may reduce the amount of the tax, or in some cases, may eliminate the need to pay any tax for that gift. There may also be a property tax benefit. Easements do not remove land from the tax rolls, but assessors do consider the effect of enforceable restrictions, such as conservation easements, on the value of the land. (Code of Iowa, Section 441.21 1b)). Thus, the land should be assessed at its actual value reflecting the limited potential use of the land. Actual value is defined as fair and reasonable market value,'in other words, what a willing buyer will pay. County Assessors should be contacted prior to granting of easements to fully understand the potential tax effects. In summary, the most distinctive aspect of protecting land through the grant of an easement is that the land remains in private ownership, yet its use is regulated and the protection can be stronger than that afforded by zoning or state land use laws, The financial aspects can be important from both the point of view of the family and the future of open space. A landowner can take this voluntary measure quite easily; but they must weigh the decision carefully, for once done, it is difficult to reverse. The financial benefits must be weighed against the realities of a loss in market value; the protection must be weighed against the need for Flexibility. In many instances, however, the range of covenants that can be contained in a conservation easement, and the way they may be applied, afford tremendous room for finding a proper balance of personal and conservation considerations. i MICROf ILMED BY j 1. --JORM MICRmLAE3 CEDAR RAPIDS - DES MOINES 1 7 J A conservation easement will affect the market value of the land to the extent that it limits the development and use potential. It is the effect on market value that is important when considering the financial aspects of easements. Any reduction in the market value may lower estate and inheritance taxes. Taxes must be paid on the amount an estate exceeds the exemption limits set by state and federal govemments, and these taxes would reduce the assets in the estate going 1 of land is the owner's ispart of a taxab a estate,stfedparcel federal and state taxes may have to be paid based upon the appraised value of the property at the time of death. Thus, any reduction in the value of the property caused by the granting of an easement will similarly lower estate taxes. In certain instances, the reduction In value might even bring the value of the estate below the exemption limit and free the heirs from paying estate taxes. At a time when land values are high and are still climbing, this incentive for granting a conservation easement may be important both for the heirs and for the future of the land. All too often land must be sold to cover the estate taxes, - If a conservation easement is granted for consideration, it constitutes a taxable event. If the conservation easement is granted for no consideration, it can constitute a charitable �J contribution. The loss in market value resulting from the grant of a conservation easement in perpetuity may also be entered as a charitable deduction when the donor calculates his income tax*- The reduction in income tax that results from taking a charitable deduction can help a landowner cover the costs of owning and maintaining the property. :S" =0X 8 regarding estate Mn and 1981 Uunges. afleatrg Mate and�IhOfar �hanu0le UrMttions and 1981 chagcf req NATIONAL PARK SERVICE 1709 Jackson Street Omaha, NE 68102 . 402.221-3431 Administers and acquires land for parks, monuments and other administration classifications of national significance for their recreational, historic and natural values. The Service has the authoriry to accept conservation easements if the land involved is of national significance or provides protection to lands or areas of national significance. STATE AGENCIES IOWA CONSERVATION COMMISSION Wallace State Office Bullding Des Moines, IA 50319 515-281-5145 Administers and protects Iowa's waters, land, forests, parks and wildlife of state significance. Administers state and federal grant programs. IOWA NATURAL RESOURCES COUNCIL Wallace State Office Building Des Moines, IA 50319 515-281-5913 Chapter 455A of the Iowa Code authorizes the Iowa Natural Resources Council to take title to lands, easements, or other interest therein with the approval of the Attorney General in the name of state as may be related to the authorized code purposes of water and/or water management. To date the Council has not taken title to property. r 31 18q i 141EROr ILMED BY r I —JORM MICR61-AO' i IJ CEDAR RAPIDS DESMOINES i i Ir 32 LOCAL SOIL CONSERVATION DISTRICTS % Department of Soil Conservation Wallace State Office Building Des Moines, IA 50319 515-281.5851 Chapter 467A of the Iowa Code authorizes the Soil Conservation Districts "to acquire by purchase, exchange, lease, gift grant, bequest, devise or otherwise, any property, real or personal" to carry out the conservation purposes of the agency. To date the Districts have made limited use of this provision. LOCAL AGENCIES COUNTY CONSERVATION BOARDS Local County Offices Ninety-eight of the 99 counties in Iowa have County Conservation Boards. Allamakee County does not These Boards are authorized by Chapter I I IA of the Iowa Code "to acquire, develop, maintain and make available to the inhabitants of the county, public museums, parks, preserves, parkways, playgrounds, recreational centers, county forests, wildlife and other conservation areas". Contacts can be made through local county offices or by contacting either of the following: Iowa Association of County Conservation Boards Suite 716, 505 Fifth Avenue Des Moines, IA 50309 515-243-0841 or County Conservation Board Activities Iowa Conservation Commission Wallace State Office Building Des Moines, IA 50319 55-281-5148 The protection afforded by conservation easements is permanent because easements legally bind all present and future owners of the land. They are recorded with the County Recorder and burden the title to the land thereafter, whether the land is transferred by sale, by gift or by devise. The covenants contained in easements have lasting effect in practice because each con- servation easement is granted to an organization, or agency interested in preserving the natural characteristics of the land. The sole responsibility of the recipient of an easement is to assure that neither the present nor any subsequent owners disregard the regulations on use set forth in the easement. An easement would be enforced by litigation by the recipient so the recipient agency must have the resources and determination to make sure that the easement is enforced. Because the agency is assuming a long-lived and important responsibility when it agrees to accept an easement, it makes the decision thoughtfully and in accordance with its awn objectives. Those public agencies specifically Identified in Chapter 1 I I D are "The State Conservation Commission, The Iowa Natural Resources Council, any county conservation board, and any city or agency thereof." Additional public and private agencies interested in accepting conservation easements are discussed on page 27. People grant conservation easements primarily because they wish to protect land which they value and which will be Important for its natural attributes in the future. Their greatest reward is their sense of satisfaction at having protected something or value, However, the financial benefits of granting a conservation easement In perpetuity can also be important. F 11. PROTECTION BY RESTRICTION The Conservation Easement A conservation easement )Chapter I I I D of the Iowa Code) is a legal means by which a landowner can voluntarily set permanent limitations on the future use of the land, thus protecting the land's particular natural attributes. The attraction of the conservation easement lies in j the fact that the land remains in private ownership. The responsibilities and rewards of ownership continue, and unless specified otherwise, the landowner retains full control over public access Just as he did before. j The limitations set forth in conservation easements are tailored to suit the unique characteristics of individual properties as well as the different activities and interests of individual landowners. Generally, the covenants or limitations prescribed in an easement limit the number and location of structures and the types of commercial and industrial activity, and they specify what can be done to the surface of the land and its natural growth. Their versatility, however, allows them to range from the "forever - wild" easement which states that the land will remain as nature leaves it, to the easement that allows limited residential use, farming, and properly managed commercial timber harvesting. .J Not only do the type of restrictions vary, but so can the size of the property under easement. For example, only the portion that has greater significance from a conservation point of view might be considered. The size can be several acres or several hundred. In sum, each easement is created in light of the particular situation, according to the values of the land and the needs and wishes of its owner. 4 ie q i f. MUNICIPALITIES Municipalities may acquire land for public uses, and town park and recreation agencies may acquire land and conservation easements in the name of the town, though town approval is required to do so. The advisability of town ownership of land or management of an easement will vary according to the town's commitment to the protection or appropriate use of park and open space. 33 EW 1 I•IICROFILnED BY 'DORM "MICR6LA13 ' CEDAR RA DES 5101 YES ! / t VIII. APPENDIX A: CHARITABLE DEDUCTIONS The Tax Reduction and Simplification Act of 1977 amended the Tax Reform Act of 1976 to allow individuals to deduct the value of gifts of land; remainder interests (such as gifts with retained life estates); and leases, options to purchase, and conservation easements granted in perpetuity. All must be given for conservation purposes. To be deductible the gift must be made to a governmental agency or a publicly supported private charity. In all cases; the amount to be deducted should be determined by a qualified appraiser, and the charitable deduction must be taken according to the following limiting rules. In any event, a tax advisor (attorney, Certified Public Accountant, banker or other tax specialist) should be consulted for specific advice. RULES FOR GIFTS OF APPRECIATED PROPERTY OR INTERESTS THEREIN' The 30% Calculation The Internal Revenue Service allows deduction of the value of the gift up to 30% of an individual's adjusted gross income in the year in which the gift is given. If the value'to be deducted exceeds 30%, the remaining value can be deducted in similar fashion in increments over the next rive year period within the applicable limitations set forth in the Code. 'Where the properly INS been held for at least li ronthS during 34 taxable years beginning in 1978. Certain considerations are often basic, and perhaps the following questions will provehelpful as you ponder your situation: • Is the land worthy of being more forcefully protected than it is now? • Do you wish to protect all or part of the property? • Do you wish to protect the land forever or for a limited term? • Do you want the land to be protected yet to remain in individual ownership, or would you consider transferring ownership to a con- servation agency? • Should you consider a sale, or a donation? • If you transfer title, do you want to protect the land by restricting future use? -Are tax (estate, inheritance, income, gift, property) implications important to you? • Do you wish to act immediately, over a period of years, or through your will? • How would your actions affect your family? • How would they affect your community and its land use and tax considerations? -Are there conservation agencies or other institutions which might be interested In helping protect your land? If you own land which is indeed worthy of being permanently protected, be it a forest, prairie, wetland, or productive agricultural fields, please read on. The various ways of voluntarily protecting land and their financial implications are discussed in the following pages. The preceding chart (figure 1) distinguishes the basic differences in techniques. It may point you to a section of particular interest should you not wish to consider all the options. Permanent protection may not always be feasible or wise in the end, but it is usually a possibility worth exploring. I I MICROFIL14ED BY l" 'DORM-MICR6LAE3 - CEDAR RAPIDS • DES MOVIES I 3 leq V1 I. THE STARTING POINT The 50% Cafcmanon Why do people decide to permanently protect In the cases of gifts of land, the taxpayer land that they own? may deduct up to 50% of his adjusted gross income if he is willing to reduce the fair market `Lack of economic value is sometimes a value of the property by 40% of the amount of character not only of species or groups, but the capital gain which would have been realized of entire biotic communities: marshes, bogs, had the property been sold. For example, consider dunes, and 'deserts' are examples. Our the taxpayer who donates a property now worth formula in such cases is to relegate their 540,000 but which he had originally acquired for conservation to government as refuges, S 10,000. The unrealized appreciation or gain that monuments, or parks. The difficulty is that would have resulted on sale is 530,000. The Jthese communities are usually interspersed taxpayer may utilize the 40% limitation if he j - with more valuable private lands: the reduces the 540,000 gift by 512,000. 00% of the igovernment cannot possibly own or control unrealized appreciation of $30,000.) If $28,000 such scattered parcels. The net effect is that exceeds 50% of his adjusted gross income, the we have relegated some of them to ultimate excess may be deducted over the next five years. extinction over large areas. If the private owner were ecologically minded, he would The revised rule applies to contributions made be proud to be the custodian of a after October 31, lie 78. reasonable proportion of such areas, which In the case of gifts of partial interests in land, add diversity and beauty to his farm and to the same procedure is followed except that the his community." .............. uoo LEOPOLD taxpayer must take into account the face that he is Despite the strong sentiments that are sure to and must allocate appreciationrt of acccordingly. Thus, In the case be present, the decision to permanently protect of an easement, the donor would deduct 40% of land is a decision which requires careful thought, the unrealized appreciation allocable to the a decision which Is often difficult to make. easement from the fair market value of the Altruism must be weighed against financial easement Itself. The deduction so determined realities, personal desires against family needs, the could not exceed 50% of his adjusted gross ideal solution against the ability of a conservation income. For example, consider the owner of the agency to be involved. 540,000 property which was originally bought for I $10,000. He grants a conservation easement which reduced the value by 20%. The fair market value of the easement Is thus 58,000. The deduction would be calculated as follows: The appreciation allocable to the easement would be 56,000 )appreciation of 530,000 x 20%). The deduction would be 55,600 (fair market value of j the easement of SB,0o0 less 40% of the unrealized appreciation of 56,000.) The donor would be able z to deduct $5,600 provided that the deduction did not exceed 50% of his adjusted gross income. The five year carry-over remains available. 35 Idq -- l8 q i MICROFILMED BY J L ` r - JORM MIC RE/L A[3 % IJ CEDAR RAPIDS •DES 61'DIYES __ 36 GIFTS OF LOSS OR UNAPPRECIATED PROPERTY OR INTERESTS THEREIN The value of such gifts may be deducted up to 50 percent of the taxpayer's adjusted gross income in the year of the gift, although as a general rule it is preferable to sell loss property to generate a capital loss and then give the proceeds. If the gift exceeds this limit the balance may be deducted over the five succeeding years. Legal and appraisal fees involved in making these gifts may, be deductible. 1g9 TABLE OF CONTENTS I. The Starting Point ................. • • • • Z if. Protection by Restriction 4 4 The Conservation Easement .......... Mutual Covenants .........c...... III. options Involving the Transfer of Title .. - - 10 Donations ......................... outright donation ................ 1 I donation by devise .:.. .........12 donation with reserved life estate ... 14 Sale ... .. .......................14 sale at fair market value ......... bargain sale .. • • • • 15 15 installment sale .... . ............. . 16 salewith reserved life estate ........ Transfer of Title with Conditions 17 Attached .....................•• prior granting of a conservation easement ............`18 19 deed restrictions .............. • • .. 21 conditional transfers ............ IV. Dedication as a State Preserve ......... 23 V. Leases ............................ 25 VI. Real Properly Payment of State Inheritance Z6' Taxes ................. .1....... VII. Agencies Interested in Acquiring Title or Interests in land 27 Private Organizations ................ 30 Government Agencies ............... VIII. Appendix A: Charitable Deductions ..... 34 37 Appendix 8: Economic Recovery Tax .... Act of 1981 - Changes Affecting Estate and Gift Taxes i 141CRUIU4ED By --JORIVI MICROLAB L% CEDAR RAVIDS •DES Id01YE5 NOTE: There have recently been changes made to the property, Income, and estate tax laws and other changes have .,been proposed. /Some of these laws may have substantial impact on the protection of natural and agricultural lands In Iowa. Options for Protecting Special Land Do you wish to continue to own the land? YES NO nservation .Mutual asement covenants Is compensation desirable? YES NO Sale: outright donation at fair market value oonanantry devise bargain sale retained life estate installment sale transfer for inhendn Do you wish to restrict future uses when you transfer tide? YES NO prim granting of easemem deed restrictions normal Iraniler of title conditional transfer preserve tied, lion FIGURE I APPENDIX 8: ECONOMIC RECOVERY TAX ACT OF 1981 —CHANGES AFFECTING ESTATE AND GIFT TAXES The following are brief summary statements of changes and a tax advisor )attorney, Certified Public Accountant, banker, or other tax specialist) should be consulted for complete information on the changes. UNIFIED TRANSFER TAX The maximum rate has been reduced from 70% to 50%. For estates in excess of 52,000,000, phased in over four years. UNIFIED CREDIT The unified credit has been Increased to $192.800, phased -In over six years. YEAR UNIFIED EEx1NAlENr cNEUr E%EMPfIDN 1982 s62,80o 5225,000 1983 79,300 275.000 1984 96,300 325.000 1985 121,800 400,000 1986 155.800 500,000 1987 and later 192,800 600,000 MARITAL DEDUCTION (ESTATE TAXI Beginning in 1982, there will be an unlimited deduction allowed with certain terminable interests qualifying for the marital deduction by election. NOTE? — In order to take advantage of the unlimited marital deduction, some wills with formula -type marital deduction provisions will need to be amended to reflect the decedent's intent that the higher deduction should apply. ALSOI— Charitable remainder trusts can pass free of transfer taxes where spouse is the only noncharitable beneficiary. JOINTLY -HELD PROPERTY Beginning in 1982, only 50% of the value of Jointly -held Property is includible in the estate of the first to die, regardless of consideration. NOTEI— Changes in ownership of property should be carefully considered. This change could hurt more than help since there will be no step-up In basis on one-half of the property. SPECIAL PROPERTY USE VALUATION Changes are generally effective beginning January 1, 1982. A Reduction limitation Increased to 5750000 phased -in over three years. B. Liberalization of qualified use and material participation C. Disposition provisions: I. Recapture period decreased to len years 2. Two-year grace period 37 req I$q 1_ 14 i 141CROFILIIED By -"DORM MICR6L.AB' CEDAR RAPIDS DES MOIRES I / i I � D. Net share rental allowed where no comparable cash rental can be determined E. Other changes I. Increase in basis by election for early disposition of property 2. Lineal descendants of spouse added to _family member' category 3. Standing timber property eligible for special use 4. Interest in discretionary trust qualifies S. Purchase of property by qualified heir qualifies as acquired from decedent INSTALLMENT PAYMENT OF TAX 65% requirement reduced to 35%. A Conforming code section 303 redemption provision reduced from 50% to 35% B. Acceleration of payment rules increases to 509b C. Subscquent transfer to family members as a result of death do not disqualify. D. Failure to make Installment payment eased. I ORPHAN'S DEDUCTION Repealed. DISCLAIMERS Clarified. GENERATION -SKIPPING TRANSFER TAX Exemption extended to January I, 1983 MARITAL DEDUCTIONS (GIFT TAXI Unlimited amounts of property (other than certain terminable interests) can oe transferred between spouses Without gift tax beginning in 1982. CONTEMPLATION OF DEATH - With certain exceptions, gifts made within three years of death will not be included in the gross estate of a decedent. INCOME TAX BASIS OF PROPERTY ACQUIRED FROM DECEDENT Carryover basis will apply to property received by the decedent by gift within one year of death which passes back to the original donor or the donor's spouse at the decedent's death. EXCLUSIONS For transfers beginning in 1982. A Annual gift excluslon Increases to 510,000 per donor B. Husband and wife may elect to split gifts for a total of 520.000 annual exclusion per donee C. In addition, payment of school tuition or medical care is not treated as a gift GIFT TAX RETURNS Starting with gifts made in 1982, gift tax returns filed and gift 38 tax paid annually, rather than quarterly. )%q With Technical Assistance from: Iowa State Bar Association — Committee On Environmental Law Chairman William B. Trent, Jr. N. William Hines, Dean — law School — The University of Iowa Allan D. Vestal, Carver Professor of Law — The Llnivefslry Of Iowa The Iowa Association of Certified Public Accountants The Iowa Conservation Commission The Iowa Association of Realtors i The Iowa Farm & Land Institute Ted Lodden, Certified Public Accountant Richard Ramsay, Attorney at Law With Financial Assistance from: Iowa State Bar Association Iowa Conservation CDmmi$Si0n Iowa Farm and Land Institute (_.....- 1 MICROFILRED BY --JORM --MICRO L AE3 CEDAR RAPIDS DES MOMES � req THE LANDOWNER'S OPTIONS A Guide To The voluntary Protection r 'Of Land In Iowa ft"red by the Iowa Natural Heritage Foundation insurance Exchange Building Suite 83Q'505 Fifth Avenue Des Moines, IA 50309 515-288-I8% Adopted Sy Permission from Maine Coast Heritage Trust' THE LANDOWNERS. OPTIONS = Janet E. Milne i I. '.J THIS BOOKLET is Intended as a general guide to land protection techniques in Iowa; however, it should not be relied upon as a sole source of information. Any landowner wishing to protect land should consult an attorney, realtor, accountant, conservation agency or the Iowa Natural Heritage Foundation. 0 Sketches donotod Orr Dean Biechler Chichaqua Bend Studio Ames I1 I 111CROFILMEO BY \ I—JORMI-MICIF46 lC0- -J CEDAR RAPIDS DES If,ll\1 .11t I11?1 .111 1 I= _ RESOLUTION NO. 83-26 RESOLUTION AUTHORIZING EXECUTION OF ANNUAL CONTRIBUTIONS CONTRACT BETWEEN THE CITY AND THE FEDERAL GOVERNMENT RELATING TO FUNDS FOR PUBLIC HOUSING PROJECT 22-4 WHEREAS, the City of Iowa City (herein called the "Local Authority") proposes to enter a revised contract (herein called the "Annual Contributions Contract") with the United States of America (herein called the "Government") with respect to any "Project" as defined in the Annual Contributions Contract and which at any time now or hereafter is incorporated under the terms of such Contract. BE IT RESOLVED BY THE LOCAL AUTHORITY, as follows: Section 1. The Annual Contributions Contract in substantially the form of contract hereto attached and marked "Exhibit All is hereby approved and accepted both as to form and substance and the Mayor or Mayor Pro Tem is hereby Authorized and directed to execute said I contract in six copies on behalf of the Local Authority, and the i Acting City Clerk is hereby authorized and directed to impress and attest the official seal of the Local Authority on each such counterpart and to forward said executed counterparts, or any of them, to the Government together with such other documents evidencing the approval and authorizing the execution thereof as may ( be required by the Government. Section 2. Whenever the following terms, or any of them, are used in j this Resolution, the same, unless the context shall indicate another or different meaning or intent, shall be construed, and are intended to have meanings as follows: (1) The term "Resolution" shall mean this resolution ' . I (2) All other terms used in this Resolution and which are defined in the Annual Contributions Contract shall have the respective meanings ascribed thereto in the Annual Contributions Contract. Section 3. All resolutions or parts of resolutions heretofore adopted by the Local Authority which authorize the issuance and/or delivery of Advance Notes (sometimes called "Advance Loan Notes") pursuant to the Annual Contributions Contract remain in full force and effect. s i Section 4. This Resolution shall take effect immediately. i I 196 i I-11CROMMED BY JORM-MICR6LAB 7) LCEDAR RAPIDS • DES MOVIES It was moved by Perret and seconded by Balmer the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Balmer XX Dickson x Erdahl x Lynch x McDonald X Neuhauser X Perret Passed and approved this 1st day of February 1983• MAYOR ATTEST: ACTING CITY CLERK Received & Approved B the Legal Depadmant t`-`,'Ity of Iowa City' MEMORANDUM Date: January 19, 1983 To: City Manager From: Lyle Seydel, Housing Coordinator Re: Agenda Item Formal City Council Meeting February 1, 1983 1. Request the following item be placed on the formal Council .agenda February 1, 1983. Agenda Item Resolution No. This resolution authorizes the execution of Amendment No. 1 to Consolidated Annual Contributions Contract NKC9160 Project IA05-PO-22-004. Comment: The City of Iowa City (Local Authority) executed an Annual Contributions Contract KC1960 dated October 12, 1982. This document was based on estimates of the Total Development Cost for the 20 units of Public Housing now under construction at Shamrock Place. Since that date a Turnkey Contract of Sale has been negotiated and a final Development Cost Budget/Cost Statement has been approved by HUD. Based on the approved Contract of Sale and Development Cost Budget, the Annual Contributions Contract is amended to reduce the Total Development Cost from $1,115,748 to $1,062,398 (a reduction of $53,350) and the .Initial Loan Commitment is reduced from $101,575 to $106,240 (a reduction of $5,335). These reductions are the results of a lower purchase price than originally projected ($6,697); a reduction in estimated Non -Dwelling Equipment Cost ($4,020); a reduction in HUD Service Fee ($21); recomputation of contingency fee at one percent rather than five percent ($42,612). Staff recommends approval of the resolution. The Legal staff will prepare and submit the resolution for Council packet. bdw3/5 j 141CROFILMED BY 1.- -JORM -MICR+LAB` 1 � CEDAR RAPIDS - DES MOIYES i RECEIVED JAN 7. 01983 LEGAL DEPARTMENT. J� C Project 1A05 -I'022-004 I Contract No. KC -9160 \ l Amendment No. I U. S. DEPARTME14T OF HOUSING AND URBAN DEVELOPMENT LOW -RENT PUBLIC HOUSING AMENDMENT TO CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT FOR PROJECT' IA05-PO22-004 THIS AMENDATORY AGREEMENT, made and entered into this _9th_day of February 19 83 , by and between the UNITED STATES OF AMERICA, U. S. 1 DEPARTMENT OF HOUSING 6 URBAN DEVELOPMENT (herein after called the "Government"), and the City of Iowa City of Iowa City IOWA i (hereinafter called the "Local Authority"); t !' i WITNESSETH: WHEREAS, the Government and the Local Authority executed an Annual Contribu- tions Contract on October 12 1982 , Contract No. KC -9160 (hereinafter called the "Existing Contract"); and i j WHEREAS, the Government and the Local Authority desire to amend said Contract. NOW, THEREFORE, in consideration of the premises and the mutual benefits to the parties hereto, it is hereby agreed that the Existing Contract is amended as follows: 1. Delete all of Section 1(A) of the Existing Contract, and substitute in lieu thereof the following words, phrases and figures: Sec. 1. Project Cooperation Agreement, and Maximum Limitations (A) The Local Authority is undertaking the development or acquisition IIand operation of low -rent housing as defined in the Act, as follows; 1 Estimated Estimated j Number Total Initial Project Dwelling Development Loan No. Units Cost Commitment I IA05-PO22-004 20 $1,062,398 $106,240 2. Delete all of Section 1(i) from the Existing Contract and substitute the following words, phrases and figures: I (1) The making of this Contract and the undertaking of the loan and annual contributions as herein provided, were approved on Lists No. KC -82-254 and KC -83-046 The remaining portions of the Existing Contract remain in full force and effect. IN WITNESS WHEREOF, the Local Authority and the Government have caused this Amendatory Agreement to be executed and the Local Authority has caused its seal to be hereunto affixed and attested all as of the date first above written. CITY OF IOWA CITY, IOWA (SEAL) By 11 _ MAYOR ATTEST: ACTING CITY CLERK UNITED STATES OF AMERICA U. S. Department of Housing and Urban Development Des Moines Service Off' Liy Tia•: La sl D,;tIli l;enf By .IJP ry L. 1✓u•r, Supervinur /pD �-. t )" kORM'711'CR"�LADEDAR RAN IDS DES MOIYES I / f IUD -9011 (11-68) CERTIFICATE OF RECORDING OFFICER I, Marian K. Karr the duly appointed, qualified and acting City Clerk of City of Iowa City do hereby certify that the attached extract from the minutes of the formal meeting of the City Council of the City of Iowa City , held on 1st day of February, 1983 , is a true and correct copy of the original ainutes of such meeting on file and of record in so far as they relate to the matters set forth in the attached extract, and I do further certify that each Resolution appearing in such extract is a true and correct copy of a Resolution adopted at such meting and on file and of record. IR TESTIIIDRY HIi MF, I have hereunto set my hand and the seal of said City of Iowa City this lst day of February , 19 83 v M O yv 7/2�Ain r• 7eA-O C cc m Acting City Clerk p 1 (SEAL) Q O M z • z r M z M X 'v m z W M i IIICROFIL ED BY l_ - —1 -� - JORM--'MICRI�LAB� CEDAR RAPIDS •DES I401NE5 110 H f 1 1ND-9012 4 is (11-68){ a �0 EXTRAOT FRC14 PIIMM OF VISMHO EXTRACT FROM TRE MIIQM OF A formal H=11G OF THE City Council OF THE City of Iowa City NIIA ON TEEE 1st DAY OF February , 1983 The City Council of the City of Iowa City met in a formal meeting at the Civic Center in the City of Iowa City , Iowa , at the place, hour, .A date duly established for the holding of such meeting. The Mayor called the meeting to order and on roll call the )Llouing answered present: Balmer Dickson Erdahl McDonald Perret ad the following were absent: Lynch The Mayor declared a quorum present. r r • r • r r • r • • • r • • r • • 233W8 -p OUS uovearaiErrt rAnrti a ar cE: icn-�ewsvzo ICEDAR RAPIDS DES I40mq f V Muo•ru t7 (11♦11 0 �� The following resolution was introduced by Mayor Neuhauser ; read in full and considered: Perret moved that the foregoing resolution be i adopted as introduced and read, which motion was seconded by Balmer and upon roll call the "Ayes" adopted as introduced and read, which motion was seconded by Balmer and upon roll call the "Ayes" and "Nays" were as follows: C AYES 9 NAYS Perret None Balmer Dickson Erdahl McDonald Neuhauser i In x �i The Mayor thereupon declared said motion carried and said resolution adopted. *eeererr•e�se There being no further business to coma before the meeting upon motion duly me -It and seconded, the meeting was adjourned. J� HUD -5417 Re,. 9/70 Project IA05-PO22-004 ntract KC -9160 iendment No. 1 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NOTE SIGNATURE CERTIFICATE We, the undersigned officers of the City of Iowa City, Iowa (herein called the "Local Authority") do hereby certify that, on the 1st day of February t 19 8; we officially signed on behalf of the Local Substituted Authority itsProject Loan Note No. dated February 1, 1983 and payable to the United States of America or order, being, on the date of such signing and on the date hereof, the duly chosen, qualified and acting officers authorized to execute said Note and holding the offices indicated by the official titles opposite our names; and that the corporate seal of the Local Authority appearing upon said Note and upon this certificate is the legally adopted, proper and only official seal of the Local Authority. Witness our hands and said corporate seal this 1st day of February t �9 $3 Signature Official Title SEAL F110 way, L. /. . ice.. •� .�_. MAYOR ACTRIG CITY CLERK Signatures above and upon the above-described Note guaranteed as those of the officers respectively designated. EIRSI NATIONAL 8Aiii(, " J 1 Cl 'fa luIV i Recslved A Approvetl Memb Federal Deposit Insurance 9y The 1.e,9a1 1?epar1nVn1 Corporation 771530—P HUD—W..h., D.C. r i MICROFIL14ED BY �. •�� � , •` - I—JORM-MICRE7CA B�� CEDAR RAPIDS DES 14019E5 I ! PWOIECT LOAN NOTE Project IA05—PO22-004 Contract No. KC -9160 " Amendment No. 1 ,L HUD -9294'.G I 11 -68) The City of Iowa City, Iowa (herein called the "Local Authority") for value received promises to pay upon demand to the United States of Americo (herein called the "Government") Or order an amount, with interest thereon to the date of payment, equal to the aggregate amount of ad. vances made to the Local Authority by the Government pursuant to the Annual Contributions Contract (herein cdlled the "Contract") between the Local Authority and the Government with respect to the low -rent housing Project as hereinafter set forth. The Contract, Project, and maximum aggregate amount of advances are as follows: Contract No. and Date: KC -9160 as amended Project No.: IA05—PO22-004 Maximum Aggregate Amount of Advances: $ 1,062,398.00 This Note is issued to aid in financing the above -designated Project pursuant to the constitution and statutes of the govern• mental entity specified below and herein called the "State", and pursuant to the provisions of o resolution (herein called the "Resolution") duly adopted by the Local Authority on the date, as follows; STATE RESOLUTION ADOPTED IOWA 83-26 February 1, 1983 Interest hereon shall accrue at the interest rote applicable to the Project as provided in the Contract only upon the difference in amount from time to time between the aggregate amount of advances and the aggregate amount of repayments of principal made on this Note. Each payment on account of this Note shall be applied to interest then accrued and the remainder to principal. Each ad- vance, repayment, and interest payment on this Note shall be duly recorded by the Government, by date, amount and type, upon the "Statement of Advances and Repayments" which is made a part of this Nota whether appearing on the reverse hereof or attached hereto. Both principal of and interest on this Note are payable at the office of the Secretary of Housing and Urban Development in the City of Washington, D.C., in lawful money of the United States of America, but the Local Authority may issue and deliver to the Government its Permanent Note (as defined in the Contract) in payment of all or any portion of the indebtedness hereunder as may be agreed upon by Such parties. The full faith and credit of the Local Authority is hereby pledged for the payment of the principal of and interest on this Note. This Note, together with all other notes issued pursuant to the Resolution with respect to the above -designated Project, is additionally secured by (1) a first pledge of a specific portion of the annual contributions payable to the Local Authority and author• iced to be pledged to the payment of such Notes and the interest thereon, pursuant to the Contract and (2) a first pledge of and lien an the Residual Receipts (as defined in the Contract) of such Project. As additional security for the equal and retable payment of the principal of and Inletest on this Note, together with all other notes issued pursuant to the Resolution with respect to the above -designated Project, the Local Authority, to the fullest extent permitted by the laws of the State, hereby pledges, mortgages, conveys and grants, and by this Note and the Resolution hos pledged, mortgaged, conveyed and granted unto the Government, its interest in all the real and tangible personal property wheresaver Situ- ated which it has acquired or may hereafter acquire in connection with or relating to the obove-dasignated Project, including thrB certain real property relating to said Project and more particularly described in the trust instrument or any amendment thereto as executed and retarded by the Local Authority pursuant to the Contract. If the preceding sentence shall be adjudged by a court of competent jurisdiction to be invalid or ineffective it it the intention of the Local Authority to be fully obligated under the other provisions of this Note and that such judgment shall not impair or invalidate the obligation of the Local Authority to pay the princi- pal of and interest on this Note from other funds of the Local Authority ashetain provided. The pledges and other obligations of the Local Authority under this Note shall be discharged upon payment of the entire in. debtedness hereunder. The Local Authority, far itself and its successors and assigns, hereby waives presentment, demand for payment, protest and notice of dishonor, and hereby consents that tbeholder of this Note shall have the right, without notice, to deal in any way, at any time, with the Local Authority, or to grant to the Local Authority any extensions of time for payment of any of sold indebtedness, or any other indulgences or forbearances whatsoever, or may release any of the security for this Note, without in any way affecting the liability of the Local Authority hereunder. No personal responsibility or accountability shall attach to any member of the Local Authority or to any person executing this Note by reason of the execution or issuance hereof. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by the constitution and statutes of the State to exist, happen or be performed, precedent to and in the issuance of this Note, do exist, have happened and have been performed in due time, form and manner as required by law. This Note shall not be a debt of any city, county, State or political subdivision thereof or any municipality and neither any city, county, Stateor political subdivision thereof or any municb polity shall be liable hereon, nor in any event shall it be payable out of any funds or properties other than those of the Local Authority. This Note shall not constitute an indebtedness within them curing of any constitutional or statutory public debt limita- tion or restriction. IN WITNESS WHEREOF, the Local Authority has caused this Note to be executed in its name and its seal to be impressed hereon and attested by its proper officers thereunto duly authorised, and this Note to be dated the 1st day of February ,1983 CITY OF IOWA CITY, IOWA (SEAL) ATTEST: CITY LLLKK g), _16A ALAA C i6U1AA&AZU MARY C. NEUHAUSER, MAYOR Received & Approved By �T.�ho(p Legal Departntont Lt-a>� t�4 Y �) 190 � MICROEILI4ED BY � I {- I—'JORM MICROLAB� 1 CEDAR RAPIDS • DES MOINES I J r'=ti STATEMErrf OF ADVANCES AND REPAYMENTS i J HUD -9204 ,�� p (11.60 f' 1 Project IA05-P022-004 � HUD -52250 ' Contract KC -9160 •\ 1 Amendment No. 1 c.r July 1966 I (Formerly PHA -2250) SUBSTITUTED PERMANENT NOTE ' No. I The City of Iowa City, Iowa (herein called the "Local Authority") for value received promises to pay on or before the maturity date of this Note to the United States of America (herein called the . "Government") or order an amount, with interest thereon to the date of payment, equal to the aggregate amount of advances made to the Local Authority by the Government pur- suant to the Annual Contributions Contract (herein called the "Contract") between the Local Authority and the Government with respect to the low -rent housing Projects as hereinafter set forth. The Contract, Projects, and maximum aggregate amount of advances, are as follows: Contract Date: KC -9160 as amended Projects Numbered: IA05-PO22-004 Maximum Aggregate Amount of Advances: $1,062,398.00 This Note is issued to aid in financing the above -designated Projects pursuant to the Constitution and statutes of the governmental entity specified below and herein called the "State", and pursuant to the provisions of a resolution (herein called the "Resolution") duly adopted by the Local Authority on the date, as follows: W U3 Z State Resolution Adopted W IL X IOWA 83-26 February 1, 1983 = Interest hereon shall accrue at the interest rate applicgble to the Projects as F provided in the Annual Contributions Contract only upon the difference in amount Z from time to time between the aggregate amount of advances and the aggregate amount Z of repayments of principal made on this Note. Each advance, repayment, and interest payment on this Note shall be duly recorded by the holder hereof, by date, amount > and type, upon the "Statement of Advances and Repayments on account of Note" attached C07 to and made a part of this Note. This Note shall be payable in annual installments on the first day of the C month next following the Annual Contribution Date (as defined in the Contract) U applicable to the Projects and in any event the final balance of this Note shall become due and payable on the first day of the month next following the last Annual O Contribution Date applicable to the Projects. Each payment on account of this Note y shall be applied to interest then accrued and the remainder to principal, and the Local Authority shall, on each payment date, apply all available funds hereinafter pledged as security for this Note and interest hereon to such payment. Both principal of and interest on this Note are payable at the office of the Fiscal Agent (as designated pursuant to the Contract), or at the option of the holder, at the office of the Secretary of Housing and Urban Development in the City of Washington, D. C., in lawful money of the United States of America, unless exchanged as hereinafter provided. This Note shall not be a debt of any city, county, State or political subdivision thereof or any municipality and neither any city, county, State or political subdi- vision thereof or any municipality shall be liable hereon, nor in any event shall it be payable out of any funds or properties other than those of the Local Authority. This Note shall not constitute an indebtedness within the meaning of any constitu- tional or statutory public debt limitation or restriction. The full faith and credit of the Local Authority are hereby pledged for the payment of the principal of and interest on this Note. This Note, together with all other notes issued pursuant to the Resolution with respect to the above -designated Projects, is additionally secured by (1) a first pledge of a specific portion of the annual contributions payable to the Local Authority and authorized to be pledged to the payment of such Notes and the interest thereon, pursuant to the Annual Contributions Contract and (2) by a pledge of and lien on the residual Receipts (as defined in the Contract) of Permanently Financed Projects (as defined in the Contract) after providing for the payment of 190 • f111•II VI ILI'iLV Yi 1_ _"JORM - MICROLAB- 1 CEDAR RAPIDS • DES MOVIES !� HUD -52250 July 1966 (Formerly PHA -2250) the Bonds (as defined in the Contract) issued in connection with such Permanently Financed Projects. The pledge and other obligations of the Local Authority under this Note shall be discharged at or prior to the maturity of this Note upon payment of the entire indebtedness. As additional security for the equal and ratable payment of the principal of and interest on this Note, together with all other notes issued pursuant to the Resolution with respect to the above -designated Projects, the Local Authority, to the fullest extent permitted by the laws of the State, hereby pledges, mortgages, conveys and grants, and by this Note and the Resolution has pledged, mortgaged, conveyed and granted unto the Government all the real and tangible personal property wheresoever situated which it has acquired or may hereafter acquire in connection with or relating to the above -designated Projects, including that certain real property relating to said Projects and more particularly described in the trust instrument or any amendment thereto as executed and recorded by the Local Authority pursuant to the Contract: Pro- vided, That the lien of such pledge and mortgage and the rights granted and conveyed pursuant to this paragraph shall (1) be junior to the Bonds and junior to the pledge of Residual Receipts securing the Bonds, and (2) not Le foreclosable until all Bonds shall have been paid and discharged in the manner provided in the Bond Resolution (as defined in the Contract). If the preceding sentence shall be adjudged by a court of competent jurisdiction to be invalid or ineffective it is the intention of the Local Authority to be fully obligated under the other provisions of this Note and that such judgment shall tu not impair or invalidate the obligation of the Local Authority to pay the principal of W and interest on this Note from other funds of the Local Authority as herein provided. a. W In the event (a) there is any default in the payment of any installment of this p Note, or (b) the Local Authority is in Substantial Default or Substantial Breach (as = such terms are defined in the Contract) under the Contract, or (c) the Contract is ter- minated, then the holder of this Note at his election may, by written notice to the LZ Local Authority, declare the unpaid balance of principal and interest of this Note Z immediately due and payable. Failure of such holder to declare this Note due and payable X upon occurrence of any of the events as aforesaid shall not constitute a waiver of W such right in the event of any subsequent occurrence of any such event. O O This Note may be exchanged at any time after the issuance of the Actual Development Cost Certificate (as defined in the Contract) with respect to the above -designated Proj- ects, upon demand by and without charge to the holder hereof for a note or notes of the W Local Authority in the aggregate principAl amount equal to the then unpaid indebtedness U Ghereunder which note or notes shall be payable serially or in installments, as the O holder may specify, equal to the specific portion of the annual contributions payable to a the Local Authority and authorized to be pledged to the payment of this Note. The Local Authority, for itself and its successors and assigns, hereby waives pre- sentment, demand for payment, protest and notice of dishonor, and hereby consents that the holder of this Note shall have the right, without notice, to deal in any way, at any time, with the Local Authority, or to grant to the Local Authority any extensions of time for payment of any of said indebtedness, or any other indulgences or forbearances whatsoever, or may release any of the security for this Note, without in any way affect- ing the liability of the Local Authority hereunder. No personal responsibility or accountability shall attach to any member of the Local Authority or to any person executing this Note by reason of the execution or issuance hereof. It is hereby certified, recited and declared that this Note has been issued by the Local Authority to aid in the financing of a housing project to provide dwelling accommodations for persons of low income, and that all acts, conditions and things required by the Constitution and statutes of the State to exist, happen or be performed, precedent to and in the issuance of this Note, have happened and have been performed in due time, form and manner as required by law. IN WITNESS WHEREOF, the Local Authority has caused this Note to be executed in its name and its seal to be impressed hereon and attested by its proper officers thereunto duly authorized, and this Note to be dated the 1St day of February 19 83. (SEAL) ATTEST: CITY OF IOWA CITY. IOWA By IAA um 1. 'IA f,,I LLL AIl_(3-d. roved MAYOR - C) 'rman Racelved & App py llle legal De nrtment ��.,,,_•`. ( [JOR'M .... M IC RbLAB 1 CEDAR RAPIDS •DES NOIRES I J STATEMENT OF ADVANCES AND REPAYMENTS ON ACCOUNT OF NOTE i J GENERAL CERTIFICATE I, Marian K. Karr, DO HEREBY CERTIFY as follows: 1. That I am the duly appointed, qualified, and acting City Clerk of the City of Iowa City (herein called the "Local Agency"). In such capacity, I am custodian of its records and am familiar with its organization, membership, and activities. I 2. That the proper and correct corporate title of the Local Agency is the City of Iowa City, Iowa. 3. That the City of Iowa City, Iowa, was duly created pursuant to the authority of the constitution and statutes of the State of Iowa including, particularly, the Act of the Legislature in the laws of Iowa of 1838-1839 at page 435, and was duly organized on the 4th day of July, 1839; and since the date of its organization, the Local Agency has continued to exist without interruption in the performance of its public corporate purposes. 4. That the names and dates of election or appointment, and the dates of the beginning and ending of the terms of office, of the members of the governing body of the Local Agency and of its principal officers are as follows: DATE OF DATE OF COM- DATE OF EXPIRA- ELECTION OR MENCEMENT OF TION OF TERM NAME & OFFICE (s) APPOINTMENT TERM OF OFFICE OF OFFICE Mary Neuhauser Mayor 1/4/82 1/4/82 1/2/84 Councilmember 11/6/79 1/2/80 1/2/84 i David Perret Mayor Pro tem 1/4/82 1/4/82 1/2/84 Councilmember 11/6/79 1/2/80 1/2/84 John Balmer Councilmember 11/6/79 1/2/80 1/2/84 Kate Dickson I Councilmember 11/3/81 1/2/82 1/2/86 Clemens Erdahl Councilmember 11/3/81 1/2/82 1/2/86 Lawrence Lynch Councilmember 11/6/79 1/2/80 1/2/84. John McDonald Councilmember 11/3/81 1/2/82 1/2/86 i Neal Berlin City Manager 1/14/75 1/14/75 Indefinite Robert W. Jansen City Attorney 6/30/81 1/2/82 1/2/84 Marian K. Karr Acting City Clerk 1/1/83 5. Each of the above-named officers required to do so has duly taken and filed his oath of office, and each of them legally required to give bond or undertaking has filed such bond or undertaking in form and amount as required by law and has otherwise duly qualified to act in the official capacity above designated, and each is the acting officer holding the respective office or offices stated beside his name. 6. None of the above-named officers is ineligible to hold or disqualified from holding, under the provisions of applicable law, the respective office, specified above, which he holds. 7. None of the above-named Councilpersons is an officer or employee of the City of Iowa City, Iowa. i I4ICROFILI4ED DY 11" -JORM-MICRbL-AB'- - CEDAR RAPIDS DES'MOINES /� Page 2 General�Certificate ' r 8. Since January 4, 1982, there have been no changes in or amendments to the charter, by-laws, ordinances, resolutions, or proceedings of the Local Agency with respect to: a) The time and place of and other provisions concerning regular meetings of the Local Agency; b) The provisions concerning the calling and holding of special meetings of the Local Agency and the business which may be taken up at such meetings; c) The requirements concerning a quorum; d) The manner in which the charter or by-laws of Local Agency may o be amended; e) The requirements regarding the introduction, passage, ; adoption, approval, and publication of resolutions, t ordinances, or other measures, relating to the approval and execution of contracts and the authorization, award, execution, or issuance of bonds, notes, or other obligations of the Local Agency; f) The officers required to sign, countersign, or attest contracts, bonds, notes, or other obligations of the Local Agency; g) The office of the Local Agency; or h) The seal of the Local Agency. i On January 2, 1976, the City Council adopted a Home Rule Charter for the City of Iowa City, Iowa. Said Charter was passed according and tt pursuant to State law. 1 9. The seal impressed below, opposite my signature, is the duly 1 adopted, proper, and only official corporate seal of the Local Agency. IN WITNESS WHEREOF, I have hereunto set my hand and the duly adopted official seal of the Local Agency this lst day February 19 83 I MARIAN K. KARR ACTING CITY CLERK t i i. f 4 Received 3 Approved By The Legal Department j9e \` MICROFILMED BY 7I 7 JORM-MIC R�LAB- CEDAR RAPIDS DES I4018ES ' /