HomeMy WebLinkAbout1983-06-27 Info Packeti
City Of Iowa City
MEMORANDUM
DATE: June 24, 1983
TO: City Council
FROM: City Manager
RE: Informal Agendas and Meeting Schedule
June 27 1983
7:30 - 9:30 P.M. Conference Room Monda
7:30 P.M. - Special Council Meeting - Separate agenda posted
7:40 P.M. - Discuss Urban Fringe Areas 5 and 6
7:55 P.M. - Discuss Rocky -Shore Bikeway
8:05 P.M. - Discuss Job Evaluation Study/Confidential Employees
Pay Plan
8:20 P.M- - Discuss Administrative Employee Benefits Program Changes
8:30 P.M. - Council Time, Council Committee Reports
8:45 P.M. - Discuss Airport/FAA Issues
June 28 1983
NO INFORMAL MEETING Tuesda
July 4, 1983
HOLIDAY NO INFORMAL MEETING Mondav
July S. 1983
7.00 P.M. - Special Informal Meeting
Conference Tuesday
7:30 P.M. - Regular Council Meeting- Council Chambers
PENDING LIST
Priority A: Iowa -Illinois Utilities Franchise
Transit Fare Subsidy Program (July 11, 1983)
Discuss Water Billing Procedures
Priority 8: Discuss City Council Majority Voting Requirements
Housing Inspection Funding Policy
Housing Market Analysis Recommendations
MECCA Funding Request
Shamrock/Arbor Drive Drainage Area
Lower Ralston Creek Parcels - Use and Configuration
North Dubuque Street Improvements
Meet with Broadband Telecommunications Commission
Discuss Amendments to Non -Discrimination Ordinance
Clear Creek Investment Company Development Proposal
Priority C: Meet with Design Review Committee regarding recommendations
Traffic Signals - Flashing Mode
Mandatory Parkland Dedication (Fall 1983)
Appointment to Riverfront Commission - July 5, 1983
Appointments to Planning and Zoning Commission and Airport
Commission - July 19, 1983
MICROFILMEO BY
!JORM MICROLAB 1
CEDAR RAPIDS -DES 140INES
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AGENDA
SPECIAL COUNCIL MEETING
JUNE 27, 1983 7:30 P.M.
CONFERENCE ROOM
Item No. I -
MEETING TO ORDER.
ROLL CALL.
Item No. 2 -
CONSIDER RESOLUTION ISSUING CIGARETTE PERMITS.
Item No. 3 -
CONSIDER SETTING A PUBLIC HEARING FOR AUGUST 2, 1983, ON THE
PROPOSED REZONING OF LOTS 28 AND 47-56 OF WESTGATE ADDITION,
LOCATED ON THE EAST SIDE
OF WHEATON ROAD, FROM R3 TO RIB.
A-8313.
Comment:
The Planning and Zoning Commission is scheduled to discuss
this item at their July 7 and July 21, 1983, meetings. The
applicant has requested that the public hearing be set prior
to Commission action to initiate a 60 -day moratorium on the
issuance of building permits for uses not in compliance with
the
proposed new zone. Letters have been sent to the owners
of property in the request area to inform them
of the proposed
rezoning.
Action:
Item No. 4 - CONSIDER PRELIMINARY RESOLUTION AND RESOLUTION OF NECESSITY FOR
THE 1983 PAVING IMPROVEMENTS (LYON'S 2ND.ADDITION) SPECIAL ALLEY
PAVING ASSESSMENT 'PROJECT.
Comment: This resolution is actually a series of resolutions which:
Sets the public hearing for July 19, 1983, at 7:30 P.M.;
adopts a preliminary resolution of necessity; fixes property
valuation; approves preliminary plans and specifications; and
adopts a resolution of necessity. This is the alley between
Van Buren, Johnson, Bowery and Burlington.
Action:
Item No. 5 - ADJOURN TO INFORMAL SESSION.
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CEDAR RAPIDS -DES MOINES
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-------- City of Iowa City
MEMORANDUM
Fate: June 23, 1983
To: City Council
From: City Manager
Re: Administrative Employee Benefit Changes-
PIYMnt
Leave and Deferral of Salary for Additional Vacation for Accrued Sick
Two changes are being made in Administrative employee benefits previously
specified in the Administrative and Confidential Employees Rights and Benefits
designed as cost control measures, though the second change has the potential to
manual, authorized by the City Manager November 17,
also increase employee satisfaction. T 1981' Both changes are
discussion at the informal session of Junee27, 1983 will schedule the items for
The changes are:
1• Administrative employees hired after June 15, 1983 will no
eligible for payment for one-half of unused sick leave upon retirement
longer be
P tirement or
2• Administrative employees, with the City Manager's
allowed to defer all or a portion of the Jul
exchange receive additional Permission, may be
follow: Paid vacation time. 2 salary increase, and in
Specifics of both changes
Sick Leave Accrual
Currently Administrative employees are eligible for payment for one-half of the
employee's unused sick leave up to 180 days
current hourly rate, upon retirement or resignatiion after one year of service.
Employees hired after June 15 urs) at the employee's
unused sick leave upon retirement 1983 'orwi1l no longer be eligible for
accrual for use will be unaffected. rEmployeesn' although their Payment
a ck native
Positions from other Citons Promoted to Administrative
unused Sick leave accrued while in the non -administrative insist ativl be e posifor tion phoweverf the
value would be frozen, e.g, accrual of 800 hours X non -administrative hourly
rate of $10 = maximum payout of $8,00o. its
retirement or resignation these hours wilje5s than 800 hours remain unused at
administrative hourly rate of pay. be
paid at the employee's non -
In surveying the benefit packages of other comparable midwestern cities
Of sick leave is rarely granted on as liberal a basis as in the Iowa City benefit
package, and the trend seems to be towards reducing or eliminating this benefit.
In Iowa City, payment for accrued sick leave except upon retirement was
eliminated from the Fire contract during the FY83 negotiations and similar
proposals have been introduced by the City in AFSCME and Police negotiations,
with no success to date. It is anticipated that making a voluntary
this benefit for Administrative employees may increase our
successfully negotiating change in
changes in the other bargaining units, chances of
The primary purpose of this change is cost reduction. We have not found this
benefit to make a significant enough contribution towards
attracting or
retaining qualified employees to justify its cost. Currently the City's
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liability for payment to Administrative employees is approximately $360,000,
with the amount increasing approximately $60,000 per year as employees increase
the number of hours of unused sick leave accrued, and the value of that accrual
increases with salary increases. For all City employees, the accrued liability
is $2,086,872 and is increasing at the rate of $150,000 to $200,000 yearly.
It is anticipated that phasing in this change will accomplish cost reduction
over the long term without depriving current employees of a benefit for which an
implied contract for payment exists.
Salary Deferral for Vacations.
Effective July 1, with the City Manager's permission, it may be possible for
employees reporting to the Manager to exchange the across-the-board and merit
salary increases, or a portion of the increases, to "purchase" extra vacation
accrual. The following provisions will apply:
1. The employee may make a request to the City Manager to defer salary in lieu i
of extra vacation only at the time that the salary increase is given.
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2. Approval of the request will be dependent upon employee performance and
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ability to be away from the jab, as will subsequent use of the accrual.
3. The amount of salary deferred may not exce
board and merit increases. ed the total of the across -the -
4. Additional vacation may be "purchased" on an hour -for -hour basis - e.g. if
the employee's salary following a 7% increase of $2,041 is equal to $15 per
hour ($31,200), the employee may purchase up to 136 hours of extra vacation
accrual ($2,041 divided by $15) or any portion thereof, as approved by the
City Manager. j
5. The entire vacation accrual "purchased" will be credited to the employee's
vacation accrual immediately after the "purchase" is approved by the City
Manager. If the employee terminates from City employment prior to
completion of the full year, a proration of the vacation accrual received
will be deducted from the employee's final paycheck or any benefit payout
check.
6. Only actual salary dollars received will be taxed.
7. The actual salary dollars received by the employee plus the value of the
amount traded for vacation will form the base for subsequent salary
increases.
Please contact me if you have any questions with regard to this policy.
bj/sp
MICROFILMED BY
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CEDAR RAPIDS -DES MOINES
City of Iowa City
MEMORANDUM
Date: June 22, 1983
To: City Council
From: AXE Andrea Hauer, Development Coordinator
Re: Submission of Additional UDAG Materials
The City has completed submission of additional materials for the City's
UDAG application. In an effort to decrease the copying work (the submissions
total over 200 pages), several items were selected from the submissions
that would appear to be more important. If you would like a particular
item or the entire submission, please contact me.
The items attached to this memo are:
1. Letter of financial commitment from Midwest Savings & Loan of
Minneapolis, Minnesota;
Z. Letter of intent to purchase Industrial Revenue Bonds;
3. A revised Summary of Development Costs form which was submitted to
HUD and a comparison between the original and revised costs; and
4. The revised UDAG Form 3(a).
The revised UDAG application shows totaldevelopment costs at $12.284
million. The funds for the project are provided by:
UDAG $2.281 million 18.57% of total project cost
Owner equity $2.310 million 18.80% of total project cost
IRBs $ . $7.693 million 62.63% of total project cost
284 mi ion
Form 3(a) provides detailed information as to the expenditures for the
project. Briefly, the UDAG is to be used entirely for construction; the
owner's equity to be utilized basically for the payment of professional
fees and a contingency reserve; and the INS will primarily fund non -
equipment expenditures and construction.
The total development costs have decreased by slightly over $600,000
from the original application cost estimates. Major decreases occured
in the room development costs which went from $12,000 per room to $10,800
per room, construction costs from $7.9 million to $7.7 million, and the
developer fee decreased by $100,000.
The application is now undergoing review by HUD. A final decision
should be made sometime in the next two to three weeks.
bj3/7-8
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RECE11"ECli
1983
00 �•�� MIDWEST FEDERAL
° ODI NICOLLET MALL • MINNEAMLIS. MINN. 5UU
00* sftfill%�
May 27, 1983
Mr. Harry A. Johnson, Jr.
d/b/a Mid -City Hotel Associates --Iowa City
Suite 213, North Plaza Building
5217 Wayzata Boulevard
Minneapolis MN 55416
Dear Mr. Johnson:
Midwest Federal Savings and Loan Association of Minneapolis ("Midwest")
hereby agrees to provide collateral for industrial revenue bonds
to be issued by the City of Iowa City, Iowa for construction of a
178 room hotel complex to be located in the downtown area of Iowa
City, Iowa ("Project") subject to the following terms and conditions:
1. BONDS: The City of Iowa City, Iowa must issue industrial revenue
bbnTs in the amount of $7,693,000.00 ('Bonds") with terms and
conditions acceptable to Midwest.
2. LOAN TO DEVELOPER: The Bonds must be sold and the proceeds be
oane to arry . Johnson, Jr. d/b/a Mid -City Hotel Associates --
Iowa City ("Developer") for the construction and permanent financing
of the Project. The terms of the loan and the documentation evidencing
said loan must be acceptable to Midwest. In addition, Midwest
shall have the right to either (i) approve each disbursement
of the Bond proceeds during the construction of the Project or
(ii) be appointed as agent to disburse the Bond proceeds during
the construction of the Project and in that capacity, be paid
a fee equal to li% of the original Bonds amount.
3. LETTER OF CREDIT: Midwest will issue a letter of credit as collateral
or t e Bon son the following terms:
(a) Amount. The letter of credit will be in the amount of $7,693,000.00.
(b) Collateral. Midwest will be required to collateralize the
letter of credit.
(c) Types of Collateral. Midwest can use any of the following
to collateralize the letter of credit:
(i) Conventional single-family residential loans.
(ii) FHA/VA single-family residential loans.
Gj MICROFILMED BY
CJORM MECROLAB
CEDAR RAPIDS -DES 140INES
Mr. Harry A. Johnson, Jr.
Page Two
May 27, 1983
(iii) Government obligations fully guaranteed as to principal
and interest by the United States of America or any
agency or instrumentality thereof including without
limitation mortgage loan pool participation certificates
issued by GNMA or FNMA.
(d) Authority of Midwest. Midwest shall have the authority to
pledge any or all of the types of collateral identified above.
In addition, the collateral pledged will have various coupon
rates and yields.
(e) Market Value of Collateral. The aggregate market value
of the pledged collateral shall be equal to (a) 200% of
the face value of the Bonds or (b) the amount necessary to
obtain an AA rating for the Bonds, whichever is less.
i(#) Valuation of Collateral. The value of the mortgages shall
be the discounted present value, as of the applicable valuation
date, of the assumed future cash flow of such mortgages.
(1) The discount rate used for valuing the mortgages in
the collateral is:
j
A. Conventional mortgages shall be discounted at the
most recent FHLMC daily posted net yield on 30 -year
single-family fixed rate loans for the shortest
available delivery period. In the event that such
yield is no longer published, they shall be discounted
at the current FHA/VA single-family primary market
rate ceiling plus 100 basis points.
B. FHA/VA mortgages shall be discounted at the current
FNA/VA single-family primary rate ceiling plus 50
basis points.
C. In the event that the daily posted net yield on
30 -year single-family fixed rate loans and the
FHA/VA single-family primary market rate ceiling
are no longer published or in existence, the conventional
mortgages shall be discounted at a rate equal to
the most recent 10 -year government bond auction
plus 250 basis points and the FHA/VA shall be discounted
at the most recent government 10 -year bond auction
plus 200 basis points.
(2) The applicable valuation dates shall be 5 days prior
to the original placement of said collateral and 5
days prior to any specified quarterly revaluation date.
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Mr. Harry A. Johnson, Jr.
Page Three
May 27, lga3
(3) The assumed future cash flow on said mortgages shall
be:
A. For mortgages with remaining terms to final maturity
of 144 months or less, cash flow shall be the scheduled
Principal and interest payments through the remaining
term calculated on a weighted average nominal rate
and a weighted average maturity assuming no other
prepayments or defaults.
B. For mortgages with remaining terms to final maturity
of more than 144 months, the assumed future cash
flow consists of scheduled principal and interest
payments calculated on a weighted average nominal
rate and on an assumed 30 -year term based on the
original principal balance for the first 144 months
with a prepayment of the remaining principal balance --
144 months hence --in the 144th month; further assuming
no other prepayments or defaults.
(4) Government obligations are valued as follows:
A. As to government obligations the bid and asked prices
of which are published regularly in The New York
Times
o> r sTeStreet
uch gornmenttoga�l
onssoaPublished moste
recently prior to the valuation date; and
B. As to government obligations not described above,
at the mean bid price for such government obligations
as reported with ten (10) days prior to the valuation
date by any two dealers in such government obligations
who are members of the National Association of
Securities Dealers.
(g) Valuation Period. The collateral will be revalued on a quarterly
basis.
4. EUITY: Developer must provide evidence of the necessary cash
ey
qui between the loan from the City and the total construction
cost which equity shall be in accordance with the Urban Development
Action Grant form 3(a) which has been provided to the Association
by Developer.
B• REIMBURSEMENT AGREEMENT: Midwest, Developer, and any other party
eeme necessary yi west will execute a Reimbursement Agreement
which sets forth the rights of the parties in the event the letter
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Page Four
May 27, 1983
Of credit is drawn down. In addition, 1t will also contain the
deefaultaprovisionhwhereis inbaa default aidDevelopby the eevtoMideloper west, atcr
loan from the City constitutes a default under the Agreement,
and sets forth the right of Midwest to a lien on the assets of
the Developer, including but not limited to, the Project itself
and a second lien on the Hilton Inn located at 1330 Industrial
Boulevard, Minneapolis, Minnesota, which liens will provide security
for the Reimbursement Agreement. All other terms and conditions
o4.the
��Agrenient must be acceptable to both Midwest and Developer,
1&74 rl�Il W Ri MJ w.�.-
6. ANNUAL FEE: il-
Midwest shalt receive an annual fee from the Developer
then outstanding on rthetPrincipin a
rOr
al balancent eaoftthexlettereOf�credit.
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7. COLLATERAL AND PLEDGE AGREEMENT: Midwest will execute a Collateral
an the a ge greemen w7 I e and Trustee or its designee relative
letter and
cotherethinggral psethat Midwested thashtich
he
right to substitute collateral at its discrhatM All terms and
. and Pledge Agreement will be acceptable
conditions of the Collateral
to Midwest.
8. URBAN DEVELOPMENT ACTION GRANT: Developer must obtain an Urban /
eve oilmen c on rant
prior to the or a Project in an amount of:,
Placement of the collateral, 52,281,000
9.
an s n
aggregating $4,250.000. in to issue to Midwest letters of credit
to Midwest. The letters of credit from in a form acceptable
issued "%
10. NON-REFUNDABLE COMMITMENT FEE: Midwest must receive anon -refundable
calm en ee n e amoun of
$16,930.00 payable as follows:
(a) $10,000.00 at the time this commitment is accepted by Developer.
A-*"# i4" 8' 4Fw LIOA4 ,� •n Atl�p�e16 vDAc G....J
(b) The balance of the cWmitment fee 1s payable at the time the
Urban Development Action Grant is approved.
11. COMPLIANCE: All documents relating to this transaction including,
but not limited to, the Bonds, collateral agreement, letter of
credit, Reimbursement Agreement, and the loan documents must comply
with all state and federal laws, rules and regulations by which
Midwest is bound including, but not limited to, the regulations
of the Federal Savings and Loan Insurance Corporation, the Federal
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CEDAR RAPIDS -DES MOINES
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Mr. Harry A. Johnson, Jr.
Page Five
May 27, 1983
Home Loan Bank Board, and state law, said law, rule, or regulations
shall control and the affected documents shall thereby be amended
if contrary to said law. In addition, all documents must be approved
by Midwest and its counsel.
12. FEES: All expenses, fees, and costs relating to the issuance,
sT and repayment of the Bonds issued in connection with the
Project and the loan resulting therefrom shall be paid by the
Developer and none shall be paid by Midwest.
13. ACCEPTANCE: This commitment must be accepted and that portion
of—Me fee then due must be paid to the Association
on or before June 15, 1983 or said commitment shall automatically
terminate. .
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14. EIfPIRATION OF COMMITMENT: The Bonds must be sold and the collateral
eMered to the eslgnated trustee October 15, 1943 or this commitment
automatically terminates.
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ACCEPTED BY: Sincerely, i
Harry A. Johnson, Jr.
MIDWEST FEDERAL SAVINGS AND LOAN j
t d/b/a Mid -City Hotel Associates— ASSOCIATION OF MINNEAPOLIS
Iowa City I
o er ampe
j Executive Assistant to the Chairman j
I and President
Date:
elson
ivice President/Lending
j RAM/kjm
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D,4U
BOSWORJH
R URFpRAIEU
June 10, 1983
Mayor Mary Neuhauser
410 E. Washington
Iowa City, Iowa 52240
RE: $7,800,000, City of Iowa City, Iowa
Industrial Development Revenue Bonds
(Mid -City Hotel Associates -Iowa City Project)
Series 1983
Dear Mayor Neuhauser:
83
This is to advise you that Dain Bosworth Incorporated intends to
purchase the industrial development revenue bonds which are to be issued
by the City of Iowa City for the purpose of providing financing for the
Mid -City Hotel Associates for the proposed 178 room hotel in downtown
Iowa City.
Our commitment to purchase these bonds is contingent upon the signing
of a Bond Purchase Agreement and upon the receipt of the Urban Development
Action Grant (UDAG) funds which have been requested by the City of Iowa
City for this project, and which are critical to the financial viability
of the project. Our commitment is further contingent upon the final
execution and effectiveness of a Collateral Agreement with Midwest Federal
Savings and Loan unconditionally guaranteeing the payment of principal,
premium, if any, and interest on the Bonds. Accordingly, but for the
receipt of the requested UDAG funds and the Collateral Agreement, we would
not be willing to purchase these bonds.
The final terms of the bond issue will be determined upon receipt of
the UDAG funds. At the present time, it is anticipated that the total
principal amount of the bond issue wil be approximately $7,800,000; the
amortization period will be determined at a later date but will be at least
ten years, and the maturity schedule will be structured with a combination
of serial and term bonds. The interest rates will be consistent with market
conditions at the time of purchase.
In accordance with the foregoing, Dain,Bosworth Incorporated will be
willing to execute appropriate legal documents to consummate this financing
following approval of the Urban Development Action Grant being requested by
the City. It is our expectation that Dain Bosworth's underwriting discount
will approximate 3% of the principal amount of bonds.
` 112 SOUTH DUBUQUE PLAZA/ IOWA CITY, IOWA 52240/ (319) 354.7800
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Page 2.
Enclosed herewith please find the annual report of our firm describing
our operations in general and including a statement of our financial resources.
WAR/be
Enc.
Sincerely,
Wayne A. Hester
ViYce President
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Attachment 4
ESTIMATED TOTAL DEVELOPMENT COSTS
1.
Land
2.
3.
Site Preparation
Constructionl�
S 210,000
36,000
4.
Fixtures, Furnishings S Equipment2/
7,700,000
5.
Architectural s Engineering Fees3/
1,922,000
6.
Financing4/
481,000
7.
Insurance
346,000
8.
9.
Inspection Fees During Construction
20,000
50,000
10.
Holiday Inn Franchise Fee
Legal s Closing Costs
54,000
11.
Loan Payment During Constructions/
60,000 j
12.
Developer Fee6/
377,000
13.
Working Cap al Reserve7/
497,000 �
14.
Contingency 88
175175,000
,000
Total
$12,284,000
I/
2/
See Construction Cost Estimate Breakdown.
3/
&
t for eand ffixtures,
Ate4D5tpercenailed tuofe
construction
and
furnishurnishings
ings
4/
equipment,
At 4.5 percent of IRB amount; includes 2.5 percent bond
issuance fee and 2
i
5/
percent financing fee.
Assumes payment of debt service on permanent
financing
during construction period with principal invested at
6�12
percent; 50 percent declining balance.
At 4.5 percent of items 2 to 11.
Present value of projected losses in Years 1
discounted 10
and 2,
8/
at percent.
At 3 percent of items 2 to 13.
Source:
Vern Beck Associates;
2uchelli, Hunter 6 Asssociates, Inc.
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PRELIMINARY ESTIMATE
TOTAL DEVELOPMENT COSTS
4/28/83 6/13/83 Change
$000 $000
1. Landl $ 198 $ 210 +6%
2. Site Preparation ($2 per 18,000 SF) 36 36 0%
3. Construction ($40,000/room) 7,990 7,700 -2.6%
4. FF&E ($12,000/room) 2,136 1,922 -10.1%
5. A&E Fees (5% of 3 and 4) 506 481 -5%
6. Financing2 385 346 -10.2%
I
7. Insurance 60 20 -66% 1
8. Inspection Fees During Construction 50 50 0%
9. Holiday Inn Franchise Fee 60 54 -10%
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10. Legal Costs 75 60 -20%
11. Loan Payment During Construction 385 377 -2,1%
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12. Developer Fee4 594 497 -16.4%
13. Working Capital Reserve
96 175 +82.3%
14. Contingency6 392 356 +8.Z% {
TOTAL $12,900 $12,284 -4.8%
1Land costs include site ($198,000) and alley easement ($12,000).
2Financing has been adjusted to 4h% of IRB amount.
3UDAG funds will be requested for use during construction period; IRBs used over
one year with 50% of balance outstanding.
40eveloper Fee has been adjusted to 41y% of 2-11.
50perating loss in Year 1; present value at 10%.
6Contingency has been adjusted. to 3% of costs.
MICROFILMED BY
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iUDAG POM 3a
SOURCES AND USES OF FUNDS FOR PRDJ C'S
Ibis constitutes partial response to part III, Section B 3b.
i
SOURCES OF FUNDS
i
Um Frivate Loans (Including
Line Item Activity Funds Equity Revenue Bonds)
a. Land Acquisition - 210
b. Relocation of Persons
and Businesses -
C. Clearance and Demolition
d. Oft -Site Improvements -
C. Ou-Site lmprovmicnts -
t. Euildirg Construction 2,281
9. Parking Facilities -
h. Capital Equipment
1. Fqn-Capital Equipment (FFE, etc.)
J. Professional Fees
k. Interim Costst
Construct on Period
Interest, Real Estate
Tares -
36
5,419
122 1,800
1,400 43
198 179
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Attachment 9
Other* Total
210
36
_ 55
7.�nn
1,922
1.443
377
UDAG Form 3a Cont'd.
SOURCES AND USES OF FUNDS FOR PROJECTS
I II
"On a separate page, specify the source and use of other funds if they are not included on UDAG
Form 3b.
For Indian Tribes, Tribal Fhterprise equity should be placed under "private equity."
Tribal Trust Funds should be distinguished from other tribal funds.
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WAG
Private
Loans (Including
Line Item Activity
Funds
Equity
Revenue Bonds)
Other*
Total
1.
Contingency
-
350
6
-
356
m.
Cost Subtotal
2,281
2,070
7,693
55
12,099
(sum of lines a-1)
—
n.
Administration
-
65
-
15
M-
o.
Working Capital
-
175
-
-
175
p.
Total Project Costs
2,281
2,310
7,693
70
12,354
(sum of lines m + n + o)
I II
"On a separate page, specify the source and use of other funds if they are not included on UDAG
Form 3b.
For Indian Tribes, Tribal Fhterprise equity should be placed under "private equity."
Tribal Trust Funds should be distinguished from other tribal funds.
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CITY CF 10V�IA CITY
(-ni{C Ci fUR 11(-) E ;1 h}V 2*1 CM, (-)vW, " h-, ? 1gI3=<, �-,C'0
0
June 24, 1983
Mr. Robert Downer
Meardon, Sueppel, Downer & Hayes
122 South Linn Street
Iowa City, Iowa 52240
Re: Urban Renewal Parcel 64-1b (Hotel)
Dear Mr. Downer:
In response to your letter of June 6, 1983, the following informa-
tion is provided. The numbers enumerated in this letter correspond
to the numbers cited in your letter.
I. & 3. Items Requested: A copy of the completed Industrial
Revenue Bond Application and curriculum
vitae of Dr. Johnson.
Reply: These items are on file at the Finance
Department.
4., 5., 7., 12., & 19.
Items Requested: General unspecified information, City
Council resolution(s), information on
other projects developed/owned by Dr.
Johnson, tax revenue analysis, and
Ms. Darling's letter to the City
Council.
Reply: These items are on file at the City
Clerk's office.
2. Item Requested: Listing of hotel financial analyses performed
by Zuchelli, Hunter & Associates, and
analysis of Mid -City Hotel Associates
Iowa City Industrial Revenue Bond application.
Reply: Zuchelli, Hunter & Associates has provided
assistance to and financial analysis of
specific hotel projects with the following
hotel chains: Hyatt; Mariott; Holiday
Inn; Trust House Forte; Radisson; Hilton;
Howard Johnson; Loew; Omni International;
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June 24, 1983 -
Page 2
Sheraton; and Stouffer. Most recently,
Zuchelli, Hunter & Associates have specifi-
cally worked with the following cities on
hotel ,projects: St. Petersburg, Florida;
Louisville, Kentucky; Annapolis, Maryland;
Monroe, Michigan; Greenville, North Carolina;
Beaumont, Texas; and Richmond, Virginia.
Zuchelli, Hunter & Associates has assisted
in the preparation of thq detailed financial
information for this project. The submitted
financial material in the UDAG application
represents Mr. Zuchelli's acceptance of
the financial information.
6. Item Requested:
Evaluation of hotel impact on sewage
system.
Reply:
The hotel will not create a surcharging
condition on any of the sewer lines it
uses. The hotel is located on a line with
sufficient capacity which connects to a
42" interceptor line on Gilbert Street.
8. Item Requested:
Letter from local bank.
Reply:
A copy of the later dated January 24,
1983, is enclosed. There was no letter
attached to Mr. Beck's letter of December 7, 1982
9. Item Requested:
Deadline for submission of Urban Development
Action Grant application materials.
Reply:
The City was informed verbally that informa-
tion should be submitted by June 20, 1983.
10. Item Requested:
Industry furniture, fixture, and equipment
(FFE) standards.
Reply:
The Mortgage and Real Estate Executive
Newletter published yIan, or m &
Lamont reported in its May 1983 newsletter
that between 14%-18% of the total develop-
ment cost is normally spent for FFE. A
standard hotel room averages between
$9,000-$15,000/room in FFE costs.
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Mr. Robert 7nwr.r
June 24, 1983
Page 3
11. Item Requested: Iowa City
Chamber of Commerce rate schedule
ol
Reply: The Chamber of Commerce has copies of the
rate schedule for local motels referenced
in the City's June 2, 1983, letter.
13. Item Requested:
Report on expansion of Dubuque Street
Parkin
Reply:
The City will execute an agreement for
parking with Mid -City Hotel Associates -
Iowa City. This agreement will detail the
conditions which must be met before the
City will consider expansion of the ramp.
An economic analysis of the two parking
ramps was prepared by Carl Walker &
Associates, Inc. in 1978. The Carl Walker
report is available from the Finance
Department.
14. Item Requested:
Hotel franchise agreement.
y Reply:
A copy of the Holiday Inn International
Franchise Agreement will be available when
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filed with the City Clerk's office.
15. Item Requested:
Hotel management agreement.
Reply:
A copy of the restaurant management agree-
-
ment between Mid -City Hotel Associates
file at the City
Iowa City and CIDCO is on
Clerk's office.
16. Item Requested:
Data documenting lost conven
bids.
Reply:
It is advised that you contact the Iowa
for
City/Coralville Convention Bureau
information documenting the size limitations
imposed by existing facilities. This
to the City by
information was conveyed
the Bureau.
17, Item Requested:
Documentationefforts in arranging
ofaof city's
o
Reply:
It is not unusual for the City to have
difficulties in finding facilities or
accommodations when arranging for meetings
and visitors.
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Robert Downer
June 24, 1983
Page 4
18. Item Requested: Letter of financial commitment for hotel.
Reply: A copy of the letter for the financial
commitment is on file at the City Clerk's
office.
Sincg ely yo res,
Neal G. Berlin
City Manager
bj/sp
Enc. (1)
cc: Vernon Beck
Dr. Harry A. Johnson, Jr.
Zuchelli, Hunter 8 Associates
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Robert Downer
June 24, 1983
Page 4
18. Item Requested: Letter of financial commitment for hotel.
Reply: A copy of the letter for the financial
commitment is on file at the City Clerk's
office.
Sincg ely yo res,
Neal G. Berlin
City Manager
bj/sp
Enc. (1)
cc: Vernon Beck
Dr. Harry A. Johnson, Jr.
Zuchelli, Hunter 8 Associates
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7nnu,iry _14, 1933
^ Mr. V,,r:10:1 R. D::ck
^!Jl Vurnun Beck & A soci.:t, Lcc.
;;uitc GO North Pla:a iWil,iin9
.5.117 waysata Bouluvaru
5 416
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cungralu.la,uion; on being named the pr•,f..rrcd developer ror
lij 1,11,! Iowacity downtown h,aL.•1 and :.hank you fm_ yours of
2.1
Your le,.tcr indican_:; chat: your muthod of finaucinq has i
1P1.nr,;ntly ehangud. It was our understanding that you wcra
luulcinn ro Lhe local oinks for a l,a •r of credit. Your lut,.•r
r , >w s..a. y.u .1. uld l i ku 1,j 111 arc: the bonds nrdvalcly with
lu,;al financial. ins; ;Lotion.;. W,: •1uit.o frankly would hav, no j
InLurusL in the bum. it Lhis Amu. PhaL is nut because wu Li1
not want to support you os thu holol project as we certainly
do. however, we si;unly ar„ ia;L in a position that wu could
utili:,r_ any mord induscri.al ruvunu-.� bond income at our bank.
we ru.pcct that soma of the uthcr area financial institution.;
7,ru in a similar .situation. -
No ,:ontinue to have an intr_rist in the consideration of a 1._ttur j
of crudiL. Our concerns in that rog,nrd aro how you could s_11
ro:>ms aL $50.00 plus pur :light downtown when similar rooms a_'c i..
h,:low cr mid $3'I.OJ, on In Lur',L•a L.J 30. tic quiz,_ frankly aro
rnc•_roned abou- LhaL .end I know you are also as you haven
::nrosscd Lhose, concarns LO us. we •.a.)uld also he concernud as
L0 what oLh,.,r proljurty Dr. :lohnson has that could be pl,_dged to
furLhur secur•: Chis projucL. wi-h a financial :;tatement such as
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his, I am sure there arc sufficient other equities to take
care of this but this is what our bank would be looking for.
We hope the above has been helpful.
Sincerely,
JRIi: sb
John R. Hughes
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CITY OF
IOWA CITY
Ci iiC CEnIrER 410E wAShin1GION Sr 1
OWA C,r/ IOC A 52240 (3 19j I,-- _- M
June 23, 1983
Mrs. Bonney Feldbush, President
Association for Retarded Citizens
324 Post Road
Iowa City, Iowa 52240
Dear Mrs. Feldbush:
Clop
The City Council received your letter indicating that the
Association for Retarded Citizens would not be adverse to deferring
receipt of funding for remodeling of the Nelson Adult Center until
Block Grant funds are allocated this fall. This allocation will
permit the City to fully fund the acquisition of the transient
shelter.
The City Council appreciates your cooperative attitude and has
indicated its willingness to consider funding for the Nelson Adult
Center project this fall when Block Grant allocations are
considered. Please prepare a detailed, updated estimate for
consideration by the Committee on Community Needs. A copy of that
request should be sent to Jim Hencin, Department of Planning and
i Program Development, Mickey Lauria, chairman of CCN and also Gina
McGee, Vice Chairman.
It is my understanding that two individuals have indicated an
interest in purchasing the existing building. Under Block Grant
regulations, the Nelson Adult Center is eligible for funding for new
construction. A new building could be completely accessible, would
alleviate the necessity for expending a large portion of future Block
Grant funding for an elevator and would provide opportunities for
future expansion. If you desire to discuss this matter, please
contact Jim Hencin.
Si c�erel yours,
Neal G. Berlin
City Manager
bj/sp
cc: City Council
Mickey Lauria
Gina McGee
Jim Hencin
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June 16, 1983
Mr. Emmit George, Chairperson
Airport Commission
712 Normandy Drive
Iowa City, Iowa 52240
Dear Emmit:
The City Council, at its June 7, 1983, meeting, officially received
and filed minutes of the meeting of the Airport Commission of May 12,
1983. A portion of those minutes indicated that the Commission is
pursuing optional uses for three of ten proposed T -hangars in order
to secure rental commitments on all units. +
j The City Council has, in the past, taken the position that securing
li leases for all proposed T -hangars would not only guarantee revenue
for payment of bonds but would also demonstrate the need for such
additional facilities and justifies the sale of bonds to finance
construction. Lease of T -hangar space for alternate purposes such as
f storage facilities does not contribute to the demonstration of this
1 need. Council continues to support the construction of the proposed
facility when all 10 units can be leased for hangar purposes. I
The position of the City Council remains as stated above and it was ,
by informal consensus of the Council on June 6, 1983, that I was
directed to communicate this information to you. I hope that this
will clarify Council's position as previously discussed during
budget considerations earlier this year. While we are committed to
support of a high quality operation and facilities at the airport, we
do feel that it is necessary to firmly establish a need for the
expansion of T -hangar facilities
commitment to them. before making a financial
i
I hope that you will not hesitate to contact me if you have any
questions regarding this matter or if I can be of assistance in any
way.
Sincerely,
Mary C. Neuhauser
Mayor
cc: City Council
City Manager
bj/sp
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City of Iowa City
MEMORANDUM
Date: June 22, 1983
To: Honorable Mayor and City Council
Fromt- ? Larry Lynch, Councilman and Chairman of Wastewater Facility
Committee
Re: Iowa City's Wastewater Facility
In October 1982, the Wastewater Facility Committee began a study of Iowa
City's wastewater collection and treatment system in light of the fact
that federal money, in all probability, would no longer be available for
implementing the capital improvements projects recommended in the
facility plan prepared by Veenstra & Kimm.
The Wastewater
followin
strategy foreach ev�iingytheRCity's hortmittee mterm yand 1pngsterm ewastewater
treatment and collection requirements.
1. Build a new wastewater treatment plant at the Sand Road site (new
Plant site) to handle all of Iowa City's liquid waste. Building a
new plant at the Sand Road site will require construction of a new
trunk sewer (and/or lift station and force main) along the route of
the southeast sewer to alleviate the Rundell Street problem and
provide for additional development.
2. Build the new treatment plant through a phased construction program
severalover years. Base
remaining usefullife of the existing plant , avaion lability of federaon l
funding, and financial capability of the City.
3. Proceed expeditiously with the study proposed by Professor Richard
R. Dague of the University of Iowa.
be/sp
A phasing scheme and the various costs associated with each phase
will be the topic of discussion at the next Wastewater Facility
Committee meeting.
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MINUTES
WASTE WATER TREATMENT FACILITY COMMITTEE
JUNE 15, 1983
MEMBERS PRESENT: Lynch, Finnegan, Cain, Kafer, Balmer, Hynes, Coulter, Zenge
MEMBERS ABSENT: Hokanson, Roe, Kroeze
STAFF PRESENT: Schmadeke, Kimm, Soper, Boren, Wordelman, Schmeiser, Berlin
OTHERS PRESENT: Dick Dague, Ed Brenton
SUMMARY OF DISCUSSION AND ACTION TAKEN:
Balmer opened the meeting by introducing Dick Dague, PhD, P.E. who is a
Professor of Civil and Environmental Engineering at the University of Iowa.
Dtreatment theague presented his report on the evaluation of waste water collection and
back
informationfor concerninglty the problems confronting the City, hisof Iowa Cit. is reortlned conclusionsoand
possible solutions.
i
After reviewing the report there was discussion of phasing the project and
questions for Mr. Dague. Dague pointed out that even with extensive upgrading
of the existing plant to make it functional, it still is not in the proper
location to serve the City and future growth.
Kimm commented on Dague's report and added a few suggestions of his own. He said
that he and his staff were already looking into ways to cut costs on the original
proposed plant at the Sand Road site.
Balmer emphasized the urgency in the committee arriving at some decision and
making a recommendation to the Council. He pointed out that the City was in
somewhat of a no growth pattern" until some of the sewerage problems on the
j east side could be solved.
Lynch felt that for the long range plan, a plant should be built at the new site.
Zenge commented that he felt this was the best direction to go, and he proceeded
to make a motion that the committee recommend to the City Council that the City
move to develop the new plant at the Sand Road site in concurrance with the long
range plan. Cain seconded the motion. There was discussion on the motion. The
motion carried unanimously.
Finnegan then made a motion that the committee recommend to phase the program as
outlined by Mr. Dague. Cain seconded the motion. Lynch pointed out that the
project would have to be phased no matter what plan was decided upon due to lack
of funding. He thought it would be helpful for Kimm to provide costs of phasing
this project. Zenge agreed that the committee should recommend phasing, but did
not feel there was enough data at this time to recommend phasing Dague's
program. Therefore, the motion was amended by Finnegan to state that the
committee recommend the phasing concept to the Council. Cain seconded the
amended motion. The motion carried unanimously.
Zenge moved that the committee make a recommendation to the Council to proceed
with Mr. Dague's study of the existing plant. Hynes seconded the motion. The
motion carried unanimously.
/07 9
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The next meeting was scheduled for August 3, 1983. Lynch expressed that this
could be the final meeting if the committee could make a final decision, based
upon the cost analysis prepared by Kimm and Dague along with some direction on
how the project should be phased. The committee should set a goal to make a
final recommendation to the Council. The Council can then can pass an overview
plan and seriously begin looking at purchasing land for the building phase.
Zenge suggested that the committee also make recommendation to proceed with the
renovation of the existing plant. Lynch added that this would be discussed at
the next meeting.
The meeting adjourned.
Minutes prepared by Sherri Patterson, Administrative Secretary
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City of Iowa City
MEMORANDUM =
Date: June 24, 1983
From:
City Council
From: Assistant City Manager
Re: Request from Hawkeye CableVision for Rate Increase
Attached please find a copy of a letter from Hawkeye CableVision and
accompanying supporting information requesting an increase in the basic
service rate of $2.00 per month effective October 1, 1983. This request
has been referred to the Broadband Telecommunications Commission for
consideration. This request is to be processed as outlined below.
Rate increase request is received at least 90 days prior to the
( proposed date of the increase.
The Broadband Telecommunications Commission reviews the request and
makes recommendation to the City Council within 60 days.
The City Council must hold a public hearing giving 30 days clear
notice and must actually hold the hearing within 90 days of that
notice. (Note: The Commission is not required to hold a public
hearing but may do so if it is so desired.)
4'
The City Council must then act on the request no later than 180
is
days after the date on which it originally sets the public hearing.
Any increased rate, if approved, becomes effective 30 days after
approval by the City Council.
For your general information, the City Council has the option of approving
the original requested increase or an amount different from that requested,
or it may deny any increase. Council will be kept informed as the
r
review by the BTC progresses.
If you have any other questions or concerns regarding this matter,
please contact me at your convenience.
i
bdw/sp
cc: Broadband Telecommunications Commission
City Manager
City Attorney
David Brown
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�Hawkeye
Cable iisio
June 7, 1983
Iowa City Broadband Telecommunications Commission
410 East Washington Street
Iowa City, Iowa 52240
Dear Commissioners:
For almost three years Hawkeye Cablevision has supplied cable
television service to Iowa City. At this time we reaffirm our.
commitment to provide the highest quality cable television service
available. A wide range of services for residents includes the
best in national satellite entertainment programming and an active
and vigorous community programming effort.
Hawkeye's commitment to subscribers started with the
franchise award in April 1979. Since then, Hawkeye has met its
new build construction obligations on a regular basis. As Iowa
City grows, Hawkeye Cablevision would like to be in a financial
position to grow with the community and continue providing the
best entertainment value in town. Recently, for example, Hawkeye
added new entertainment programming, Music Television (MTV), the
popular cable music channel.
In order to keep growing in this rapidly changing industry,
Hawkeye Cablevision must receive an equitable and fair return on
its investment. During the franchise process the city recognized
a 13 percent to 17 percent ROI (Return on Investment) as
acceptable. As the attached documents show, Hawkeye's ROI since
1980 has been significantly below an acceptable rate.
To assure continued growth with the community, excellent
customer service and a fair and equitable return on its
investment, Hawkeye proposes its first rate increase. Even with
the proposed rate increase, Hawkeye's 1983 ROI would still fall
/a 70
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far below an acceptable level. However, Hawkeye also recognizes
that trying to bring the ROI to an acceptable level might limit
the total number of subscribers and reduce gross revenues. Thus,
Hawkeye proposes limiting the rate increase to $2.00 for basic
cable service.
This s
was granted four years agog increase
ngthisptime prices osed since tfor he fvirtually
all of our supplies have risen along with wages and benefits for
our local employees. Additionally, although copyright fees
increased earlier this year, Hawkeye continues to offer the same
channels it provided before at no additional cost to Iowa City
subscribers. Yet, our costs increased substantially.
The cable television industry continues to change and our
outlook is optimistic. Hawkeye is proud of the service it has
provided to Iowa City residents. We look forward to a
continuation of excellent service in this growing community. We
have attached financial information to assist the commission in
its rate review. If you should have any questions regarding the
financial statements or contents of this letter, please do not
hesitate to contact me.
Sincerely,
�G� 4N�
Bill Blough
Hawkeye Cablevision
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RATES AND CRARGES
CURRENT NEW
RATES RATES t
Monthl----= gates
Basic Service
$ 7.95 $ 9,95
Extra Outlet
$ 2.00 $ 2.00
Video Tape Recorder$
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2.00 $ 2.00 !
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EM Service
$ 1.00i
$_00
Premium Service:
Ebre Bdx Office
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Home Box Office/Cinemax
95
$ 8.95 $ 9.45
$ 9.95 $10.effective July 1, 1983)
$17.00" )
$18,50
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MOEM c uuvisim ampoRATIoN
RELURN ON nrjEm ENP
Years Ended December 31, 1980 through December 31, 1.983
f Return:
)
.let income/(loss) before tax
f Plus interest
?rovision for incase tax (a)
I Tnvestment:
.+verage net tangible and -intangible
assets, at cost
7orking capital allowance
Return on Investment
C1mlulative
April 11, 1979
to
December 31, 1980
Year Ended December 31,
1981 1982 1983
Projected
$( 252,012)
$( 454,250)
$( 118,558)
$ 150,509
110,136
612,775
609,274
602,700
( 141,876)
158,525
490,716
753,209
72,924
( 81,482)
( 252,228)
( 387,149)
S( 68,952)
$ 77,043
$ 238,488
$ 366,060
$2,248,154
$4,143,644
$4,281,907
$4,223,034
31,254
155,661
176,815
195,890 j
$2,279,408
$4,299,305
$4,458,722
$4,418,924 I
( 3.08)
1.88
5.3%
8�
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—JMaffE CUMMSION CORPORATIM
S12094ENT OF OPERMONS
Years Ended - ,
e0embw 31, 1983(b)
Revenues:
( Service - CATV
Pay programming
Connection and other
bcpenses:
Cumulative
April 11, 1979 Year Ended December 31,
to 1981 1982 1983
December 31, 1980 Projected(,
$ 69,187
80,419
149,606
32,491
182,097
Operating and origination 97,067
Selling, general and administration 152,965
Depreciation and amortization 73,941
Interest 110,136
434,109
Net InocKe/Moss) Before Income Taxes $( 252,012)
S 726,060
$1,034,564
$1,265,377
1,140,737
I
1874,052
,00 ,1122,175,301
,81,63
2,646,2020
i
95,265
95,620
79,778 j
1,695,377
2,270,921
2,726,378 I
701,587 863,346 980,780
543,704 551,170 586,340
291,561 365,689 406,049
612,775 609,274 602,700
2,199,627 2,389,479 2,575,869
$( 454,250) $( 118,558) $ 1150,509
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:h YMYI" CABIEVISION HI'Y• •.
TION
NO= TO FDOOCIAL SnUEMMM
Decedoer 31, 1980
through 1983 (projected)
a) On a consolidated income tax reporting basis net operating losses
generated by one system offset taxable income generated by other systems
in the current year. The 1980 operating loss of Hawkeye has, therefore,
been reduced (and the return on investment correspondingly increased) to
reflect the tax decrease resulting from the subject operating loss.
b) Years ended December 31, 1980 through 1982 per audited financial
statements. Year ended December 31, 1983 projected based on historical
information and budget. Interest and management fees per audited
financial statements have been adjusted as follows to reflect the actual
allocaticn of costs incurred by the parent company (American Television
and Communications Corporation):
Cumulative
April 11, 1979' Year Ended December 31,
to 1981 1982
December 31, 1980
Net inane/ (loss) before income
taxes
$(331,525) $(585 786
Less Adjustments: interest ( 76,927) ) $(260,180)
Management fees ( 2,586) (183,001) (200,460)
Adjusted income before taxes _ 51,965 _ 58,838
$(252,012) $(454,250
® � $(118, 558
c) Projected includes Basic increase of $2.00 effective October 1, 1983, HBO
increase of $1.00 and Cinemax increase of 500 effective July 1, 1983. If
all increases had been effective January 1, 1983, the return on
investment would have been 10.78•
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City of Iowa City
MEMORANDUM
Date: June 23, 1983
To: City Council
From: Karin Franklin, Planner
Re: City/County Urban Fringe Study - Areas 5 and 6
The City/County Urban Fringe Committee is currently considering develop-
ment policies for Areas 5 and 6. Area 5 includes the two mile extra-
territorial jurisdiction of the City east Of Scott Boulevard and Area 6 is
that area south of the current corporate limits and east of the Iowa
River. Background material is attached. The Committee would like the
Council's input at this time. No consensus has been reach by the
Committee to date.
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AREA q5
JUNE 1, 1983
Background
The Area 5 outlined on the map consists of all the land lying within one mile of
Iowa City on its east and southeast side. The primary land use in this area is
agricultural. More specifically it contains approximately 3,000 acres of high
quality farmland. Scott Boulevard and the city limits run north and south at
the west edge, a county gravel road is the eastern border and several roads
(Highway 6, American Legion Road, Lower West Branch Road, and others) cross
through this area. The area is within the Ralston Creek and Snyder Creek
watersheds.
Development within Area 5 has been limited up to this time. One residential
subdivision, and one mobile home park have been developed. In addition, a
residential care facility has been constructed and several non-farm residences
have been built in the area. Most of the area, with the exception of a few
isolated tracts is zoned RS Residential. The other existing zoning consists of
the mobile home park area zoned highway commercial and the care facility zoned a
mix of commercial and multi -family.
Since other areas under consideration by the committee have been expanded to
include everything within the two mile extraterritorial jurisdiction, it is
suggested that Area 5 be extended in a similar fashion. The zoning of the area
beyond one mile is currently agricultural.
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Iowa City Comprehensive Plan
The following paragraph is excerpted from the 1983 Iowa City Comprehensive Plan
Land Use Update:
Development in the East side of Iowa City. has nearly met the corporate
limits. With the unconstrained availability of sewer service and the
completion of Scott Boulevard, it can be expected that development will
reach the corporate boundary in the short-range and development pressures
to the east of Scott Boulevard will be felt. Since there is sufficient
land within the City now to accommodate future growth, it is not
recommended that land to the east of the current corporate limits be
annexed in the short range. However, in recognition of development
pressures which may occur in this area, a policy of sequencing development
should be adopted which would encourage development within the City limits
first. With the completion of in -fill in the East side, annexation
requests could then be considered with the limit of the annexable area
being determined, in part, by watersheds and sewer service area boundaries.
Control of fringe development in this area should be included in the
discussions of the City -County Urban Fringe Committee and any annexation
request should be evaluated in terms of the outcome of those discussions.
In the urban fringe study presented to you in draft form in February, 1982, two
alternatives for a growth policy for Area 5 were outlined. Alternative I
assumed a policy agreement in conformance with Iowa City's growth strategy and
with the concept of preserving agricultural land in the county. Implementation
of this alternative would require that Johnson County rezone the area from RS
Residential to Al Rural with existing development retaining its current zoning.
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Alternative 2 assumes that the City would act independently and attempt to
discourage urban development in the fringe area through the application of full
city subdivision development standards.
The draft dated February, 1982, went on to recommend that the first alternative
be selected since that option would prevent unplanned development which
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otherwise might occur even under stringent city standards. The 1983
jComprehensive Plan Update essentially does not change these alternatives or the
recommendation, however, it is recognized that there will be pressures to annex
areas just east of Scott Boulevard at some point. It is anticipated that such
I annexation would not occur until development on the east side had reached the
{� current corporate limits of the City. The time frame under consideration is
approximately 10 to 15 years.
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Background
AREA #6
JUNE 1, 1983
Area 6 as originally proposed includes all of the county land zoned RS
within one mile of the Iowa City corporate limits between Sand Road and a
tributary of Snyder Creek. Again, it is suggested that the area be
extended to the two-mile extraterritorial limit to be consistent with the
configuration of other areas under discussion.
Although Area 6 contains high quality agricultural land, unplanned
development will continue to occur unless it is controlled. Scattered
residential development is already occurring . The topography of the land
is relatively flat and provides an inexpensive location for development.
In addition, the planned construction of sewer improvements in this area
will make sanitary sewer service at a relatively low cost available.
__ Iowa Citv Comprehensive Plan
C
The 1983 Iowa City Comprehensive Plan Land Use Update indicates that with
completion of sewer improvements south of the corporate limits, pressures
will be felt to annex land. However, until development occurs within the
current corporate limits, no annexation of land to the south is encouraged
or anticipated, with the exception of any property used for siting a
sewage treatment facility. With the present delay in completion of the
sewer improvements created by a lack of funds, the pres
of the city limits should be lessened. sure to annex south
The Update also points out that given a moderate rate of anticipated
growth, the southern arterial by-pass
e 1978 lan has been
deleted from the Update. Thimphasizessfurthered in h the projection that j
urban development is not expected to extend far to the south within the
15-20 year time frame of the Update.
Zoning
The zoning in Area 6 expanded is RS within one mile of the City, Ap west of
Sand Road, and Al in the remainder of the area to the two-mile mark.
Alternatives
Growth management in this area can be carried out through rezoning of the
RS area or through the imposition of standards. Annexation is no longer
an option for the City since municipal services will probably not be
availble in the area for some time. Once services can be extended an
update of the Fringe Study should be conducted and the agreement should be
revised accordingly.
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City of Iowa City
MEMORANDUM
Date: June 23, 1983
To: City Council
From: Bruce A. Knight, Planne{/
Re: Proposed Rezoning of 521 Kirkwood Avenue
Council received a letter from Patrick D. Gilpin requesting that the
City Council initiate a request for an R2 zoning for the property located
at 521 Kirkwood Avenue. On May 25, 1983, the Kirkwood Neighborhood
Association filed an application for the rezoning of 521 Kirkwood Avenue
from M1 to R2. This application was discussed briefly by the Planning
and Zoning Commission at their June 2, 1983 meeting. A full public
1983umeeting, andsfinal actionvis schedulednforsJulya7,t1983.June would,
therefore, appear appropriate to let the current R2 request run its
course rather than initiating an identical request at this time.
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City of Iowa City
MEMORANDUM
DATE: June 23,98��"
TO: City Manager
FROM: Robert W. Jansen, City Attorney
RE: Central Jr. High -- Sale of Sabin to Cou ty I
This is in reply to your recent inquiry
r or
not the sale of Sabin School to the County nbyrthegSchooleDistrict
with or without the $50,000 cash payment satisfies the public
purpose requirements.
As.you may recall, the proposal to accept $50,000 cash plus a sale
of the Central Jr. High property to Mercy Hospital was premised
on the thought that the Hospital intended to use the property, at
least in the short run, to furnish off-street parking for patrons
and employees. Furnishing such parking would relieve the City of
a substantial financial outlay because that many less off-street
parking spaces would have to be provided by the City. This savings
coupled with the $50,000 would, in my view, reach the adequate con-
sideration level for disposing of the City's interest in the property.
The same rationale is applicable in the situation where the School
Board would sell the Sabin School to the County and pay the City
$50,000. Presumably, there are costs, either direct or indirect,
in having to close off Harrison Street to permit the proposed County
building to be constructed resulting in a loss of present parking
spaces and any other costs that we can think of resulting from the
closing of that street. In addition, Sabin would provide.a fair
amount of off-street parking for County employees and those having
business at the County offices. At the same time, Harrison Street
would remain open with the number of parking spaces still available
on that street.
Whether the sale of Sabin to the County without the $50,000 cash
payment would satisfy the public purpose and adequate consideration
requirements would probably be acceptable, but I think that we would
have to more closely demonstrate the cost savings by leaving Harrison
Street open and the number of off-street parking spaces opened up
on the Sabin School site.
In conclusion, this would probably work.
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City of Iowa City
MEMORANDUM
DATE:June 24, 1983
TO: City Council and City Manager
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FROM: Frank Farmer, City Engineer
RE: Rocky Shore Bike Trail
The Rocky Shore Bike Trail plans are under design for construction
during August or September of 1983. For the past three months, the
Street Department crews have been hauling dirt fill and broken concrete,
when available, to stabilize the river bank and raise the low areas
for placement of the bike trail. Street Department personnel have been
utilized to minimize the cost of the project.
The bike trail is proposed to be constructed eight feet in width.
A memo to Council from Dennis Showalter addresses the proposed width of
the bike trail.
The original cost estimate for this project was $100,000. With the
work that has been completed by contract with Metro Pavers in 1982 and
Street Department personnel this year, the estimated cost to complete
the project is $58,800. For comparison, the difference in cost between
and 8 foot and 6 foot width is approximately $12,250.
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parks & recreation
department MEMO
to: City Manager and City Council from. Dennis E. Showalter
re. Width of Bike Trail at Rocky Shored a t e . June 24, 1983
All recent publications, including National Recreation and Park Association
j publications, recommend an 8' minimum width for bicycle paths. Some
recommend 10011. If a path is as narrow as 6', it is difficult or impossible
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for two bikes to meet and pass.
My observations regarding the 6' path adjacent to the road in Lower City
Park is that bikers usually use the road instead of the path because the
path is too narrow. What we have, in effect, is an expensive jogging track.
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The cost of increasing the width from 6' to 8' is small, as opposed to the
total cost of the project.
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City of Iowa City
MEMORANDUM
DATE: June 22, 198.E ,➢
To: Neal Berlin, City Manager LrW
FROM: Harvey D. Miller, Police Chief
RE: Gabe' s WWW l
The Iowa City Police Department has received twenty-two
assorted (non -noise) related complaints in regard to Gabe's
Tavern and sixteen noise or disturbance complaints from
residents of Ecumenical Towers residents that probably
are related to Gabe's but cannot be specified as arising
from that location.
In regard to the beer garden specifically, we have very
few complaints recorded. One was received on March 4;
two on June 17; and two on June 18. At least, this is the
number I find on file in the Records Room.
Usually noise complaints, like disturbance complaints are
non-specific. For example, "Somebody's yelling in the alley;
"People are sittingon cars in the parking lot and drinking
beer,", or; "That tavern is -at it again," etc. Few com-
plainants have specified the 'beer garden as the focal
point of noise complaints and none of the events that lead
to complaints are scheduled in advance so that officers
can be in the area at the time of occurrence.
In addition, the•alley and parking lots are used as
throughways for walkers going to and from the downtown at
all hours. Finally, Neal, other taverns and clubs in the
vicinity of the housing unit also contribute to the problems
in the area. Gabe's may be a principal contributor to
noise problems, but it is not the only one. The real
problem is that drinking in bars is more popular than any
other night activity in downtown Iowa City, and with no
drinking spot in downtown Iowa City over three to four
hundred feet of a similar establishment, the problems of
control occasioned by drinker's behavior are greatly
magnified.
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IOWA CITY POLICE DEPARTMENT
Monthly Report
May, 1983
The Iowa City Police Department recorded 3219 citizen
generated requests for service (complaints) in May, 1983.
This total
was one -hundred nineteen more than in April, 1983,
and three hundred thirty-nine
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more than were received in
May, 1982. A substantial portion of this increase can be
attributed to significantly greater numbers of O.W.I.
(operating while intoxicated)
and noise complaints.
O.W.I. complaints increased by almost 20% in
May as com-
pared to April, 1983, and noise complaints by almost 21%.
`
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On the other hand the number of arrests; citations issued
and tickets
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written declined by more than 1,000 in May as
compared to April. A.C.T.'s numbered 2082 in
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May, as
compared to 3101 in April. This decrease is mainly because I
of the end of the regular school year at the University of I
Iowa and the
accompanying decrease in the number of illegally
parked vehicles,
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Investigative activities continued at about the same
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level in May as in the previous month- - - as did Animal
Control activities, i
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May, like February was really a "blah" month. More reports !
of equal significance to this
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one will be published later.
I'll bet you can hardly wait, i
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Statistical summaries are attached.
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CITY OF IOWA
CITY
CHIC CENTER 410 E. WASHINGTON ST IOWA CITY, IOWA 52240 (319) 356-5000
i
June 1983
City's Inkind Contribution to Service Providers
i
ESA
$8.72 X 132 sq.ft.
X 132 sq.ft.
X 441 sq.ft.
pp 705 sq.ft. = $6,147.60
P.i
AARP
$8.72 X 168 sq.ft. = $1,464.96
_g
SEATS !
$8.72 X 270 sq.ft. _ $2,354.40
Congregate Meals
j $8.72 X 1545sq.ft. (kitchen)
X 1210sq.ft. (1-2 of Assembly/Dining)
2755 sq.ft. =$24,023.60
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Day Program
$8.72 X 330 sq.ft. = $2,877.60
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` These figures do not include use of other Senior Center spaces,
i.e. conference room, classroom, etc. Nor do they include use
4 of City services such as the print shop, or equipment such as
{ the duplicating machine which are provided by the City at cost
S' or below.
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IOWA
CITY
REPORT
JUNE 2211983
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CIVIC CENTER
June 23, 1983
W
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OF
410 E. WASHINGTON ST
Mr. Wm. Jack Sasser, Manager
Airports Division
Dear Messrs. Sasser and Fischer:
IOWA CITY
IOWA CITY, IOWA 52240 (319) 350-5000
Mr. Mel Fischer, Manager
Planning & Programming Division
Federal Aviation Administration
601 East 12th Street
Kansas City, Missouri 64106
This document substantiates the actions taken by the City of Iowa City in compli-
ance with Section 511(a)(5) of the Airport and Airway Improvement Act of 1982.
This Act requires that the sponsor of an airport development project under the Act
render adoptions ofrances zoningllawslhas9to beenthe or willtbettaken, toatheproprite action, includinthe
extent reasonable, to
restrict the use of land adjacent to or in the immediate vicinity of the airport
to activities and purposes compatible with normal airport operations, including
the landing and takeoff of aircraft.
The City has attempted in all efforts detailed herein to protect the Iowa City
Airport from developmental incursions. Any actions which the FAA deems to be
incompatible with the applicable requirements were initiated only after extensive
deliberation and based upon legal and financial considerations which were incom-
patible with the best interests of the City of Iowa City.
meetingAt a on Monday, June
Planningand Programming yDivision, informed 3the9City 83, Mthat r. ethe iFAA ewouldnreview its
position to reallocate the tentative allocation of grant funding for aerial easement
acquisitions and reconstruction of failed runway pavement sections. This recon-
struction is to be based upon the submission of the information contained therein.
The City Council, the Airport Commission and the community view with great concern
the actions of the FAA in this matter. The City is fully committed to maintaining
and expanding a viable and safe airport. Any action taken by the FAA to delay or
permanently preclude airport improvements can only be viewed as detrimental to the
safe operation of the Iowa City Airport. For this reason we encourage early
reconsideration and prompt approval of the grant funding necessary for improvements
at the Iowa City Airport.
Thank you for your cooperation.
Sincerely yours,
iuwu Wry Airport Commission
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CONTENTS
SECTIONS:
I'll -COMMUNITY WIDE SUPPORT
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SECTION I. MASTER PLAN -ADOPTION AND IMPLEMENTATION
m
The Master Plan was accepted by the Iowa City Airport Commission
F,
after public hearing on October 27, 1982, and approved by the FAA by
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letter of February 1, 1983, in which the FAA concurred with the conclusions
and recommendations of the report. On May 10, 1983, City Council formally
adopted the Master Plan by resolution. On page A22 of the Master Plan
Report (Contiguous Land Use), the land uses around the airport are
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discussed. Paragraph 3 states: "According to the Land Use Plan, adopted
by the City Council on May 30, 1978, land immediately adjacent to the
airport property has been planned for land -consumptive commercial use
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with the exception of the area around the Wardway Plaza (Ranshaw project)
which is for general commercial business," and on page E3 (Recommendations -
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Recommended Land Use - Contiguous) states: "Existing land.use around
the Iowa City Airport can be described as mostly residential to the
north with farmlands, commercial and industrial developments all located
in the vicinity. ... The best use of land surrounding the airport therefore,
�
depends more on intelligent, informal planning than on restrictions to
specific categories of usage. Therefore, it is recommended that the
existing land uses in the area be allowed to continue." Sheet 8 of 10
_
of the Airport Layout Plan maps (Land Use Plan) shows the area north of
the airport (Ranshaw Project) to be zoned commercial and commercial (C-
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2) as defined by the 1978 Land Use Plan. On page 77 of the 1978 Land
^
Use Plan, commercial (C-2) is defined to be: "Zone designed for development
of offices, compatible office -type businesses, apartments and certain
public and semi-public uses." These sections of the Master Plan were
commented on by the FAA in its letter of October 19, 1981, and there was
no mention that changes needed to be made to the zoning ordinance. The
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Airport Layout Plan drawings were approved by the FAA in its letter of
August 10, 1982, which included the commercial zoning north of the
airport. It being the belief of the City that these sections of the
report were consistent with FAA assurances, normal development continued
in the area.
Implementation of the Master Plan commenced as early as September
8, 1982, when the City Council adopted the newly developed Tall Structure
Overlay Zoning Ordinance. The model used to develop that ordinance was
supplied by the Iowa Department of Transportation which, according to
Bob Nemers, formerly with IDOT, was taken from FAA Advisory Circular,
AC150/5190-4 (A Model Zoning Ordinance) and the development of that
ordinance was coordinated closely with the FAA through Mel Fischer,
Dwaine Hiland and 011ie Ohlman. Again, the City believed that following
the language of the Advisory Circular would meet the requirements of
grant assurances. Immediately following the FAA letter of March 30,
1983, which discussed the issue of incompatible land use, the City began
revising the recently adopted tall structure ordinance to develop language
that would prevent residential and all other incompatible land uses in
the clear zones. It is the City's belief that it has complied with its
assurances to the extent to which it was apprised of them.
Since the adoption of the Master Plan the City Council has supported
the airport financially in implementing many recommended developments.
The airport has purchased additional lighting regulators and radio
control units to switch its night time lighted runway to runway 6/24 as
recommended by the Master Plan. An NDB radio transmitter was purchased
and is being installed on the field with instrument approaches being
developed to runways 06 and 30 as well as an RNAV approach to runway 24.
In addition, the City has installed taxiway reflectors and taxiway
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Airport Layout Plan drawings were approved by the FAA in its letter of
August 10, 1982, which included the commercial zoning north of the
airport. It being the belief of the City that these sections of the
report were consistent with FAA assurances, normal development continued
in the area.
Implementation of the Master Plan commenced as early as September
8, 1982, when the City Council adopted the newly developed Tall Structure
Overlay Zoning Ordinance. The model used to develop that ordinance was
supplied by the Iowa Department of Transportation which, according to
Bob Nemers, formerly with IDOT, was taken from FAA Advisory Circular,
AC150/5190-4 (A Model Zoning Ordinance) and the development of that
ordinance was coordinated closely with the FAA through Mel Fischer,
Dwaine Hiland and 011ie Ohlman. Again, the City believed that following
the language of the Advisory Circular would meet the requirements of
grant assurances. Immediately following the FAA letter of March 30,
1983, which discussed the issue of incompatible land use, the City began
revising the recently adopted tall structure ordinance to develop language
that would prevent residential and all other incompatible land uses in
the clear zones. It is the City's belief that it has complied with its
assurances to the extent to which it was apprised of them.
Since the adoption of the Master Plan the City Council has supported
the airport financially in implementing many recommended developments.
The airport has purchased additional lighting regulators and radio
control units to switch its night time lighted runway to runway 6/24 as
recommended by the Master Plan. An NDB radio transmitter was purchased
and is being installed on the field with instrument approaches being
developed to runways 06 and 30 as well as an RNAV approach to runway 24.
In addition, the City has installed taxiway reflectors and taxiway
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direction signs as described in item 4 of Phase One of the Master Plan.
Other specific steps taken by the City to implement the Master Plan
after its adoption have been the following:
I. Consultations with the Johnson County Board of Supervisors
concerning the exercise of joint City -County airport zoning powers in
the clear approach areas where some of the land is in the county and
some within city limits. These consultations are being carried on by
the City Council and the Board of Supervisors.
Z. Consultations between the City and County Planning and Legal
staffs relative to airport zoning and joint protection of clear zones.
3. On June 13th the City Council imposed a moratorium on building
in clear zones preliminary to the adoption of the revised overlay zone
which eliminates residential and people -intensive uses in the underlying
commercial zones. This ordinance is to be enacted within the moratorium
period.
4. The City has undertaken a program for obstruction removal of
trees, etc. around the airport. These measures are in compliance with
the Runway Profile sections of the Airport Master Plan.
5. The Master Plan section "Recommended Land Use" recommends the
establishment of future land usage zones: Zone A Restricted governing
land usage in the required runway safety areas and airside pavements;
Zone B Airport Buildings; Zone C Limited Agricultural; and Zone D General
Agricultural. It is the intent of the City and the Airport Commission
to establish these zones in cooperation with the County Supervisors
through agreement or the establishment of an airport zoning commission.
These features will be considered in connection with the first step
outlined above.
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6. Enactment of an Iowa City Airport Ordinance to provide a legal
basis for the land usage requirements, noise controls, and zones set out
above.
7. The City Housing Division is to revise its building permit
forms to include a section that indicates that all applicable FAA regulations
have been complied with to ensure that the FAA will be aware of all
future development around the Iowa City Airport.
The Airport Commission has no intention of putting the recently
completed Master Plan on the shelf. The City and the Airport Commission
Will pursue a progressive program of reviewing and updating the plan as
conditions warrant, with an annual update to the FAA regarding the
status of the Master Plan. The Airport Layout Plan Maps (ALP) are being
updated at this time and will be forwarded to the FAA soon for its
review.
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The tract of real estate owned by Mr. Kenneth Ranshaw is located in a C2
zoning district. Under the Iowa City Zoning Ordinance, premises located in the'
C2 commercial zone may be used for residential (multiple dwelling) uses as well
as commercial uses. Iowa City Code of Ordinances, Sec. 8.10.13. In addition,
since the tract is slightly more than 2 acres in size, the owner was required to
comply with the applicable Large Scale Non-residential Development Ordinance.
Iowa City Code of Ordinances, Chao. 27, Art. III. This ordinance provides for a
site review process by City staff to ensure compliance with all City Code provisions,
e.g. set -back, parking, tree, buffering, traffic circulation, etc. The resulting
Plan must be approved by the Planning and Zoning Commission preliminary to City
Council final approval. Approval of a plan is a prerequisite to granting a
building permit.
Mr. Ranshaw's proposed development plan provided for two buildings with the
lower levels for commercial purposes and the second levels for 30 apartment
units. After determination by City staff that the development plan met all City
code requirements, it was approved by the Planning and Zoning Commission on April
7th and referred to the Council for final approval on Tuesday, April 12th.
Council discussion on the plan approval was scheduled for the informal work
session on Monday, April 11th.
While representatives of the FAA had informed the City that such residential
development was incompatible with airport operations, the City Attorney was
obligated to inform the City Council that since Ranshaw was in compliance with
all applicable zoning and other ordinances, the City could not legally refuse
approval of the development plan or deny the issuance of a building permit. This
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the Large Scale Non-residential Plan was ministerial only and that denial of
a approval would be legally arbitrary and legally unreasonable. See Oakes Const.
w Co. v. City of Iowa City, 304 N.W.2d 797 (1981).
�i The only existing ordinance regulating structures in the approach and clear
H' zones dealt with height. Ranshaw's proposed buildings are within those limitations.
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There were no other prohibitions dealing with residential uses in approach and
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clear zones. To condition approval of the plan based on any limitations or
i PI requirements not contained in the existing City ordinances is beyond the Council's
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The City Attorney expressed the same view to the FAA staff in a phone
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conversation on the afternoon of April 11th. FAA Regional Counsel or a member of
his staff was present when this view was expressed. Neither at that time nor
�n
since that time has any FAA staff member presented any information contrary to
j'ri the opinion of the City Attorney which would enable the City to pursue any other
course of legal action.
Iy Based on the City Attorney's legal advice, the Council did approve the Large
} Scale Non-residential Plan on Tuesday, April 12, 1983. The City Attorney also
informed the City Council that Ranshaw had sufficient reason to institute liti-
gation for substantial damages in the event of denial or any delay in approval of
the plan.
I i
f; -.. On April 18, 1983, the City Council and the City Attorney extensively
} 7, discussed the FAA concerns and position in executive session. The City Attorney
presented the following legal options.
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1. Revocation of the building permit. Iowa law is fairly clear that
a building permit can be revoked, but only if it had been illegally issued.
Crow V. Board of Adjustment, 227 Iowa 324, 288 N.W. 145. Ranshaw's permit
was not illegally issued, as he was in compliance with all City code require-
ments and therefore could not be revoked.
_ 2. Seek an injunction. The only basis for seeking an injunction was
the safety issue. The burden would be on the City to establish that con-
struction of the apartment aspect of the project would constitute a clear
and immediate danger to persons who would reside there. It is the City
Attorney's opinion that bringing an action for injunctive relief would
subject the City to a claim for inverse condemnation. Ranshaw might claim
i
a substantial amount of damages as a result of being restrained from proceeding
with the construction of 30 apartments. The Attorney estimates that this
_ claim could expose the City to a damage claim ranging from $300,000 to
$500,000. In addition, the court would require a cash bond in a very
substantial amount during the pendency of the action designed to cover any
II' losses sustained by Ranshaw during the litigation delay including the -
Possible loss of a commercial tenant for failure to complete the project by
August 1.
�. 3. Institute condemnation roceed,- s and acquire the second floor
�+ development rights. The same cost considerations were present as in the
i + second option.
Based upon advice of legal counsel, the City Council determined that litigation
would be extremely costly and there were simply no funds available either in the
budget or in reserve to pay the potential costs or damages.
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However, the Council instructed the City Attorney to contact Mr. Ranshaw and
his attorneys to determine if a price could be negotiated for the second floor
rights. A meeting was held on April 25 and discussions indicated that the
Purchase price could very well be in excess of $500,000. This was reported back
to the Council that same day. The money to meet this cost is not available.
Other efforts to resolve the problem were also initiated. Members of the
Airport Commission met with Mr. Ranshaw and his attorneys. Mr. Ranshaw stated
that he was not in a position to delay his plans. The City Attorney has also met
with Ranshaw's attorney on numerous occasions and to date no solution has been
reached.
The City and the Airport Commission have acted to the best of their ability
to deal with the present situation and continue to look for more favorable
alternatives.
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With the recent media attention that has been focused on the Iowa City
,.I
Airport regarding the securing of much needed funding to repair rapidly
deteriorating runways and purchasing clear zone easements to protect our
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approaches, we have included as part of this report responses received from
w several local businesses. We feel that this is another indication of the strong
public support that our airport now has. These letters indicate that the Iowa
t
City Airport is vital to the continued growth of Iowa City and is strongly
supported by the community.
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Iowa City • Iowa
,W L
® June 21, 1983
Pr.
i� Mr. Wm. Jack Sasser
Manager, Airports Division
Federal Aviation Administration
601 E. 12th Street
Kansas City, Missouri 64106
Dear Mr. Sasser:
{a
We appreciated very much having the opportunity to speak
ra with Mr. Fischer when he addressed the Transportation
Committee of the Chamber on July 13, 1983, and feel that
his presence in Iowa City was of great benefit in bringing
17 better understanding of the current situation to both the
FAA and the people of Iowa City: We are now writing to
— you not only to thank the FAA for allowing Mr. Fischer to
visit us, but to reiterate our concern regarding the tentative
loss of the allocation which had been approved for runway
repairs and easement acquisitions this summer.
The Chamber represents over 700 business people and businesses
in the greater Iowa City area. Of paramount concern to the
chamber is the continuing attractiveness of our community to
these businesses and to new businesses investigating Iowa City
!' as a community in which to locate. To both businesses
L presently located in Iowa City and to businesses investigating
Iowa City, having a well maintained and usable airport, is a
I,J primary consideration. We are very concerned about the effect
that the tentative withdrawal of funding will have on our
community.
We urge you to reconsider your position with respect to your
tentative decision to withhold the funds which had been allocated
_,to Iowa City for this year. We feel that our community and general
aviation can best be served by getting back on the track of maint-
aining and developing our airport as provided in our. recently
�' adopted Master Plan as quickly as.possible.
�-t
Thank you for all that you have done in the past and we appreciate
your consideration for the future.
Sin r
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L : a an, President Keith Kafer, Executive Vice President
Greater Iowa City Area Chamber of Commerce
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The University of Iowa
Iowa City, Iowa 52242
w Vice President for Flnance I
and University Services
7
June 21, 1983
1647
Mr. Russ Schmeiser
Acting Chair
Iowa City Airport Commission
Iowa City, Iowa 52240
Dear Mr. Schmeiser:
The University of Iowa is supportive of community efforts
to assure that Iowa City has a quality general aviation air-
port. The University of Iowa will enroll 30,000 students in
the fall of 1983 and it is essential to the University that
adequate air transportation be available to and from Iowa City.
Visiting scientists and scholars, our own faculty, athletic
teams, University and state officials and alumni rely upon the
Iowa City airport as a vital aspect of the area's transportation
system. The University of Iowa Hospitals and Clinics is the
nation's largest University -owned teaching and research hospital;
the Iowa City airport is a vital link in Iowa's health care
delivery system.
I hope that you will urge federal officials to give every
consideration to continuing federal support for the airport,
and I hope you will feel free to contact me if you require any
further information.
S1
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� Q
ndall P. Eezans4�1
kr 6&7_,
Vice President for F nance and
University Services
cc: President James 0. Freedman
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The University of Iowa
Iowa City. Iowa 52212
The University of lows Hospitals and Clinics
Office of the Director and Assistant to
The President for Statewide Health Services
(319) 356.1018
r
3
Mr. Russ Schmeiser
Acting Chairman
Iowa City Municipal
Airport Commission
Iowa City Airport
Iowa City, Iowa 52240
June 20, 1983
0
Dear Mr. Schmeiser:
UniversityThe
Iowa CityMunicipal Hospitals th
Airport forvital services iincluding cs is a raireambulance fser-
e
vice, cadaver kidney transport, and charter service for physicians from Uni-
versity Hospitals traveling to clinical outreach program sites throughout the
state. The general aviation services provided through the Iowa City Airport
are considered essential to our programs to provide tertiary level patient
care and outreach educational services to the citizens of Iowa. Decisions
which alter the Airport's Master Plan and potentially affect the operations of
the airport may have an adverse effect on these services.
We are, therefore, concerned regarding the potential impact of recent
development of commercial property to the north of runway 17/35 which has re-
sulted in revocation of a Federal Aviation Agency grant to the Iowa City Muni-
cipal Airport. We understand that the loss of these monies may have some
impact on the airport's Master Plan.
1041
During public hearings last fall, we were given an opportunity to review
and comment on the proposed Master Plan. At that time we indicated that the
Plan appeared to reduce potential safety hazards associated with the present
'primary' runway and also would decrease noise generated by aircraft flying
over the -University of Iowa Hospitals and Clinics. We would hope that the
changes which may result from the deviation from the Master Plan will not
delay or jeopardize its implementation and again wish to offer our concurrence
with and support for this plan..
If we can provide you with any assistance, please don't hesitate to contact
me.
Sincerely,
oe B. Tye
Assistant D rector for Planning
JBT:js
cc: Mr. J. W. Colloton
Mr. C. M. Eldredae /a? 7p
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THE PROCTER & GAMBLE MANUFACTURING COMPANY
IOWA CITY PLANT
7700 LOWER MUSCATINE ROAD June 21, 1983
IOWA CITY, IOWA 57710
Iowa City Airport Commission
Iowa City, Iowa 52240
Attention: Mr. Russ Schmeiser
Dear Mr. Schmeiser:
This is to express support for Iowa City maintaining
a viable airport which contributes to the general
health of business as well as to the total community.
There is no question. but what the presence of an airport
is important to many businesses as they consider Iowa
City as a passible site. It is also important to
maintain businesses in Iowa City that rely upon an
airport as a key part of their operation.
I do not have enough facts to suggest how the current
issues should be resolved, but I do believe it is
important to Iowa City that the Commission find a
resolution.
Sincerely,
NL ew�n
Plant Manager
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OWENS BRUSH COMPANY
Division of CooperCare, Inc.
P.O. BOX 552 - LOWER MUSCATINE ROAD • IOWA CITY, IOWA 52244
PHONE (319) 336-5411 - TELEX NO. 464409
June 21, 1983
Mr. Russ Schmeiser
Iowa City Airport Commission
Iowa City, Iowa 52240
Dear Russ:
I understand that the City of Iowa City is having
some difficulty in receiving funding from the
Federal Aviation Administration to assist in the
maintenance of our airport facilities.
Speaking as a private citizen and businessman, it
is essential for the present and future of Iowa City
to not only maintain our present airport facilities
in a first-class condition but also plan for future
growth. Business travel today and in the future is
and will be extremely reliant on privately owned
company aircraft. Our company and many of our customers
and suppliers fly company owned aircraft in and out of
Iowa City in the conduct of business. Almost all of
the planes are jets. It is obviously vital, necessary
and mandatory for Iowa City to provide a safe airport
facility to accommodate the current and planned future
traffic.
I trust the Federal Aviation Administration will sense
the necessity and urgency of the Iowa City Airport
Commission's request for funding assistance. There
should be no question that the allocations are re-
quired to provide our community and surrounding area
that is served with a safe and adequate airport
facility.
Inc, /
J. D. Follas
Vice President - Administration
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Amhinaune
June 21, 1983 Enginwring
Planning
Mr. Fred Zehr
Airport Manager
City of Iowa City
Municipal Airport
Iowa City, Iowa 52240
— Dear Mr. Zehr:
I am writing to express our very strong support for the development of
the airport master plan as previously approved and for the continued
r maintenance and upgrading of the Iowa City airport.
As you are aware, our firm bases a Cheyenne II in Iowa City which is a
rw very integral part of our firm's operation. We would be unable to
effectively service our clients in a 22 -state area without the use of
sophisticated airplane equipment. The Iowa City airport provides us
t" with great flexibility to access our airplane from our office to respond
1H to client concerns on very short notice. We do have a professional
pilot and are continually evaluating,the need for additional airplane
equipment. ,
1a
{ We have became increasingly concerned over the past couple years about
the maintenance of runways and hope that you can move rapidly to accomplish
a much needed maintenance program. We are appreciative of the runway
{„ lights that have been installed so it is possible to illuminate each
runway, and other improvements that have been made.
1' In evaluating our aircraft, we have been limited by the length of the
{„ runways in Iowa. City. We would Tike to see a runway that is 5,000+ feet
long which would give us the option to consider other types of aircraft
I, on a safe basis. Further, we would be very appreciative of a precision
{ instrument approach into Iowa. City. There are occasions throughout the
year when, due to limited approach altitudes, we have not been able to
land in Iowa City. An extended runway with that instrumentation would
{ greatly improve the safety and the viability of the Iowa City airport.
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Plan Car" Ono
Iowa CIM lows 572x4
Telephone (31913544700
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As you are aware, we are very concerned that the master plan be maintained
and that construction around the airport not be allowed to happen so
that the master plan can be properly implemented. If we can be of any
support with statistical information regarding the utilization of our
airplane which, by the way, flies about 600 hours per year and is utilized
minimally 200 days per year, we would be more than happy to give you
additional information in support of the maintenance and upgrading of
the Iowa City airport.
We feel that the normal growth of our firm and our ability to service
clients around the country have been closely linked with our general
aviation capability. We cannot afford to see anything happen which will
curtail that ability and would like to see 1t improved so that we may
upgrade our equipment.
Thank you for your consideration.
Very truly yours,
HAMS ND MEY R .C.
Richard F. Hansen, FAIA
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W. ;I. Jack Sasser
Chief, Airports Division
Federal Aviation Administration
601 E. 12th Street
Kansas City, Missouri 64106
Dear Mr. Sasser:
June 20, 1983 /1
010
104
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I am writing to attempt to add to the body of information
which will help you and your staff arrive at the right
decisions in regard to the Iowa City Airport.
Our organization came into being during what was surely the
low point in the recent history of the Iowa City Airport.
At almost every meeting of the Iowa City Council, citizens311
appeared to protest airport operations; noise and safety !w
were the topics of the day. The airport Commission and the YI
City Council were frequently engaged as adversaries on
various issues, such as funding and property ownership. The O
City Council responded by appointing some persons who were
unacquainted and perhaps unsympathetic with airport issues. A
Some airport commissioners in turn responded with attempts to ` I
reduce the utility of the airport, limit operations, and at son
one point, even with an attempt to abolish the independent a
airport commission. Do
Since that time we and countless others have strived to effect O
a 180 degree turn, for insured survival, and we think these
combined efforts have been very successful. a
We have seen a total reversal of attitude on the part of most
of the adversaries. Citizen complaints are rare. The City EW
Council and the Airport Commission have developed an excellent
and positive working relationship. Some of the most out— A
spoken critics have become the most helpful promoters.
Funding, although never easy in these times, has been seen in O
light of necessity.
We have a new and good master plan. We have adopted a tall
structures overlay zone, which now is in the process of being
expanded for additional protection. We were, and I think agai
will be, going forward.
M
2041 ROCHESTER COURT IOWA CITY. IA 52240
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It is unfortunate that a glitch has developed which casts
a shadow on our progress.
At the risk of making this letter too long and cumbersone,
I would like you to understand that this present problem is
not the product of improper attitude, but rather the product
Of unfortunate oversight.
I was a member of the City Planning and Zoning Commission
during all of the time the Master Plan and the city's new
Comprehensive Land Use Plan was under development. I am
sure that if the relationship of the airport and this
adjacent zone had been called to our attention, it would have
been corrected at that time; unfortunately, this did not
happen. It had not been noted prior to the time of the
Ranshaw application.
We all want the Iowa City Airport to continue in its role
as a vital community asset, and to that end we hope the
current difficulties can be resolved in a positive fashion.
IJ
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If I, or our organization, can be any assistance in furthering WW
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your efforts, please do not hesitate to let me know.
Very sincerel ^ o
Richard Y. Blum,
a
President
RYB/nan o
2041 ROCHESTER COURT IOWA CITY, IA
52240 I319I 354-2737
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SUMMARY
The goals and objectives of the City of Iowa City and of the FAA
with respect to the Iowa City Airport are identical - to provide a well-
maintained, safe airport which can adequately accommodate the general
aviation needs of the community today and into the future. The City has
been working hand-in-hand with the FAA to meet these goals over the past
four years through the development and adoption of the Master Plan.
Since the adoption of the Master Plan, the City has undertaken to implement
the Master Plan as outlined in Section I. Unfortunately, an essential
step in the implementation process was not completed prior to the commencement
of residential development in the clear zone to Runway 17.
Certainly the FAA and the City of Iowa City were in accord when the
tentative allocation was given to the City's grant request in March,
1983. The only incident which has occurred since that time which has
affected the City's tentative allocation is the Ranshaw project for
which the City issued a building permit in April, 1983. Of course, the
issue is not the mere issuance of the permit, but the larger underlying
question of whether the City acted in good faith and in a reasonable and
prudent manner when it issued the permit and when it decided not to
pursue an injunction or proceed with a condemnation action. As presented
in Section II, it is obvious that a great deal of time, energy, study
and thought went into the issuance of the permit and the lack of action
against the developer after the permit was issued. The City acted both
reasonably and prudently when it issued the permit and when it decided
not to pursue an injunction or condemnation. Attempting to seek an
injunction entailed grievous financial risks to the City. The Council
is charged with the duty of considering the welfare of all citizens and
taxpayers of the City. It cannot plunge the City headlong
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into litigation that could expose the City to such substantial liability
as was evident here. Having been forced to discard litigation, the City
exercised all reasonable attempts to negotiate a purchase of the development
rights in its efforts to salvage the situation. Full consideration must
be given to the local facts and events that existed in Iowa City or a
fair assessment cannot be made.
The City has demonstrated in many ways over the past year the
commitment which it has to the Iowa City Airport. Many positive steps
have been taken by the City both with respect to the airport facility
itself and the land areas adjacent to the airport. In addition, the
community has rallied to show its support for the airport and its strong
feeling of need for a safe, well-maintained facility.
We can all benefit from the knowledge we have gained through our
discussions of the Ranshaw project. We are now much more aware of
pitfalls that have existed in the past in our zoning ordinances (and
actions to correct these pitfalls have been taken). We are more aware
than ever of the feelings and priorities of the FAA. The community is
more of a positive force behind the airport today than it has ever been
in the past. The communications level between the City and the FAA is
now at an unprecedented high.
Let's not let the delay of the approval of our grant request and
the very much needed runway improvements and aerial easement acquisitions
undo the positives which have resulted from our past two months of
discussions. Let's instead get back on the forward track and head once
again toward our common goal - to provide a well-maintained, safe airport
which can accommodate the City's growing needs.
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- - -- - -----
C ' ITY
---CITY OF IOWA CITY
CNIC CENTER 410 E. WASHNGTON ST. IOWA CI1Y. IOWA 52240 (319)356-500C)
June 21, 1983
Attorney John Cruise
Barkers, Cruise 4 Kennedy
311 Iowa Avenue
Iowa City, Iowa 52240
RECEIVED JUN 3 1983
COPY
Re: New Zoning Ordinance
Dear Johil:
Your letter of March 29, 1983, addressed to the City Manager, was
referred to me on March'31st for a reply. In your letter you raised a
number of questions concerning whether or not there will be a moratorium
and a cor..cern that new construction will be shut down throughout the city
during the process of consideration of the new ordinance by the City ti
Council. As you no doubt know, I hold up responding to your questions
since we have had one lengthy meeting with Mr. Sueppel and yourself as
attorneys for the Homebuilders Association
in which atnumber of the deadlihe issues
were explored. In addition, y Y
s for
enactment of the new ordinance has been postponed several times and cer-
tainly any consideration of the ordinance by the Council will not occur
until early fall. Accordingly, there is no 60 day moratorium imposed
during the summer when construction activity is heaviest.
However, your concerns are certainly still applicable since there
undoubtedly will be construction activity occurring throughout the fall and
i
into the early winter. The question of whether or not the setting of the
new ordinance for public hearing will trigger the 60 day moratorium required
under Section 8.10.32D of the City Zoning Code will Hoed to be considered.
As you know, the code section referred to provides that no building permit
shall be issued for a period of 60 days after the Council has set a public
hearing on the question of ametnjdinj the zoning ordinance if the amendment
prohibits building or use contemplated by the requested building permit in
the area concerned. A building permit sought for a use which will be permitted
in the area after the amendment would be issued.
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June 21, 1983
Page 2
The Council had given serious consideration to adopting only por-
tions of the new ordinance rather than the comprehensive ordinance, but
that decision has not been conclusively made. At the present time the
Planning and Zoning Commission believes it can report the entire ordinance
to the Council in September and if this can be accomplished within that
time, the whole ordinance would then be set for hearing presumably in
September. If the comprehensive ordinance is adopted rather than portions
of it, it will be necessary to amend the present code section since the
moratorium is imposed only in the case of amending the existing ordinance
and does not speak to the question of a comprehensive replacement. ordinance.
That question can not be resolved until we have a more accurate determination
of whether or not Planning and Zoning will be reporting the entire new
ordinance in September.
In response to your question as to whether the City is planning for
any procedures to avoid a city-wide shutdown, the answer at this time is
no and this point has not really been discussed by the Council.
You also asked the question whether or not the only exception to the
building permit moratorium will be property that•was either rezoned or sub-
ject to public hearing upon the question of rezoning within the prior 12
months? This provision is found in Section 8.10.32F of the City Code and
was recently amended by the Council to provide that a property can be subject
to the moratorium even if the zoning classification were amended within the
previous 12 month period. '
I apologize for not responding to your letter sooner, but I assumed
that since we had had at least one meeting dealing with the new'zoning
.. ordinance and you had monitored a number of the Council meetings -concerning
:iY;the,discussion of the ordinance:that most of your questions had by now been
r�ek;nnswered. However, since you did address your letter to the City Manager
s his wish that your letter not remain unanswered.
` questions, le�l yop hW�.�eny q , p ase do not hesitate to contact ma.
{� Very truly yours,
£v! � Y✓ a 5 h� �
�1P
Robert W. Jansen
City Attorney
Cc:City Manager
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INFORMAL COUNCIL DISCUSSION
JUNE 27, 1983
INFORMAL COUNCIL DISCUSSION: June 27, 1983, at 7:45 in the Conference Room at
the Civic Center. Mayor Mary Neuhauser presiding.
COUNCIL MEMBERS PRESENT: Balmer, Dickson, Erdahl, Neuhauser, Perret, McDonald.
Absent: Lynch.
STAFF MEMBERS PRESENT: Berlin, Helling, Karr, Jansen, Franklin, Boothroy,
Carroll, Farmer, Showalter, Zehr.
OTHERS PRESENT: Kay Gillies, Nancy Sieberling, Mike Walz, Russ Schmeiser, and
Emmit George.
TAPE-RECORDED: Reel 83-20, Side 2, (1137 -End, Reel 83-21, Side 1, N1 through 32.
Urban Fringe Areas 5 and 6
Erdahl said that the County is concerned that there may be leap -frog development
in Urban Fringe Areas 5 and 6 because of the east side moratorium and that
downzoning will make more pressure on the County. Franklin said that options
before the Committee included downzoning the area from residential to
agricultural but the County was reluctant. Neuhauser and Berlin both said that
they felt the City's position is unchanged while Erdahl felt that the County is
more willing to change its position. He added that as the County becomes more
involved with the problems, things can be worked out. Areas 7 and 8 around the
airport also need to be resolved with the July 6 meeting aimed at discussing the
problems. Erdahl emphasized that an agreement should be made for the entire
airport area even if that agreement is subject to later negotiation. Balmer
expressed concern about the areas south of the railroad, east of Scott Boulevard
that is a good industrial location. Neuhauser replied that it could be annexed i
and zoned industrial when the sewer system is ready to be expanded in that area.
Rocky Shore Bikeway
Neuhauser noted that the proposal to expand the proposed bikeway may require
removal of a few trees. She also raised the possibility that the power lines
could be buried along Rocky Shore Drive. Perret pointed out that under the
administrative code, the utility must pay for the hook-up to private homes up to
a maximum of three times the average annual bill when lines are being buried.
Neuhauser added that citizens have told her that residences south of Rocky Shore
Drive are to be serviced from someplace else than the Rocky Shore electrical
line. Staff will investigate these utility issues. Council discussed the poor
state of repair of Park Road. Neuhauser noted that Mr. Meardon's sidewalk will
have to be considered in the bikeway design.
Job Evaluation Studv
Erdahl stated that there has been 11 or 13 appeals filed by employees of 20
evaluations. Carroll said that upward movement by the group was about the same
as the AFSCME group with about one-half moving up and none moving down. She said
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that individuals filed appeals after discussing them with each other and that
much of the concern was with what happened to others and not himself or herself.
Carroll outlined the process of keeping Confidentials and AFSCME employees
comparable including using some of the same people on evaluation committees.
This is the first time that employees or the City can appeal the decisions of the
evaluation group. The Confidentials do have a close group identity which
complicates any relations with them. Carroll added that perhaps through better
communication the number of appeals would be reduced. Even the people whose
appeals were turned down seemed content with the process.
Free-standing Signs in the Public Right-of-wav
A list was provided to Council for all free-standing signs over the public
right-of-way, standard on the right-of-way, and sign not permitted in the zone.
The issue came up when The Speak Easy applied for a beer permit. Any of the
businesses could be required to move their signs at any time. Neuhauser rioted
that the Council should have a consistent policy of enforcement. The previous
policy has been informally allowing violations until the business approached the
City for some sort of permit. Jansen said that all premises signs that are
located on the right-of-way are a violation of the zoning code and if it's a
violation of the zoning code, no variance can be granted. He added that while
grandfathering existing signs that are over the right-of-way is a possibility.
Balmer asked if the sign could be approved with the condition that an indemnity
agreement be signed and an agreement that the sign would have to be removed when
the property is sold. Jansen replied that it would still be in violation of the
code. He also said that the public right-of-way couldn't be rented for private
purposes. It would be possible to amend the code to allow existing signs or
signs that have been in place for 20 or 25 years with the provision that they
must be sold when the property is sold. An additional provision could be added
that any sign would have to be removed in 20 years or when the business is sold
whichever is earlier. So, Council agreed that the signs with standards in the
right-of-way would be amortized over 20 years by amending the code. After the
Code is amended The Speak Easy could put their sign up.
Administrative Employee Benefit Proqram Chanaes
Carroll said that administrators are less prone to use sick leave, therefore,
reimbursement for unused sick leave is not necessary. She said studies show
that reimbursement isn't a cost effective way to eliminate abuses of sick leave.
Berlin stated that other cities have found that for the administrative group and
others there are other incentives cheaper than the accrual of sick leave if sick
leave abuse is effectively identified. For instance, a bonus vacation day has
been rewarded for minimizing sick time in other communities. Balmer questioned
whether the salary deferral or vacations proposal is actually cost beneficial
considering the problem of not having sufficient personnel to staff departments.
Berlin thought that it would be of limited use because many administrative
employees at upper levels don't use all their vacation now.
Council Time
1. Central Junior High/Sabin memo. Neuhauser summarized the memo pointing out
that the sale of Sabin School to the county would be considered as a public
purpose. Jansen stated that part of the compensation of such a sale would
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be benefit to the City of having Harrison Street remain open and county
parking at Sabin. Also, city taxpayers might well save on county taxes
because of the county's purchase of Sabin instead of building a new
facility. Erdahl said that he feels that the use of Sabin by the county is
a sufficient public purpose without collection of the $50,000 from the
School Board. The Council agreed in principle that it is in favor of
consideration of the sale of Sabin to the School Board as a public purpose.
2. Council vacations. Balmer will be gone from July 1 to July 11. Dickson
will be gone the week of July 17. Perret will be gone in late August.
Neuhauser reminded the Council of the importance of having at least four
members at the meeting.
FAA Report
Zehr has not heard the opinion of the FAA to the City's June 22, 1983, report.
Staff will follow-up on the report.
Meeting adjourned at 9:00 p.m.
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