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HomeMy WebLinkAbout1982-12-07 Info Packetr I I December 1, 1982 The Honorable Cooper Evans U.S. Representative 317 Cannon House Office Building Washington, D.C. 20515 Dear Mr. Evans: The Legislative Committee of the City Council of Iowa City would like to meet with you regarding upcoming legislative issues and other concerns which may be addressed by Congress in the next legislative session. The Legislative Committee is composed of former Mayor John Balmer, current Mayor Pro Tem David Perret and myself. We have met with Congressman Leach in the past and have found such meetings to be very helpful. A meeting prior to the beginning of the next legislative session would be desirable. Further, the upcoming holiday season would seem to suggest that a date in early January 1983 would be preferable. Ms. Lorraine Saeger of the City Manager's office will be in contact with your office in the near future to arrange for a convenient date and time. I look -forward to having the opportunity to discuss with you matters of mutal interest and concern. I hope you will not hesitate to contact me if I can provide further information or clarification relating to this request. i Thank you in advance for your attention regarding this matter. Sincerely, Mary C. Neuhauser Mayor cc: City Council tp/sp 141CRUILHCD BY JORM MIC Rd1L AB J I CEDAR RAPIDS DES 401NES I City of Iowa City MEMORANDUM Date: • November 24, 1982 To: City Council ^ v f From: City Manager ���� Re: Use of General Obligation Bonds for Storm Sewers At the informal Council session on November 22, 1982, the Manager mentioned that General Obligation Bonds issued for the purpose of storm sewer construction could be abated with revenues from the sewer system. This position has been confirmed with our bond counsel who indicates that the question is a policy decision for the City Council. Therefore, the Creekside storm drainage improvements could be funded with GO bonds abated with sewer revenues. tp2/9 E 111CROEIL14E0 0Y � JORM MICRbLAB CEDAR RAPIDS • DES RAPIDS DES MOI NESE aos3 J L; City of Iowa Cit, MEMORANDUM Date: December 2, 1982 To: City Council v From: City Manager/ �.%�� Re: Street Lights on Wylde Green Road In October the Council received a letter from Mr. James Thomas of Wylde Green Road requesting street lights be installed along his street. Wylde Green Road was developed with front yard gaslights instead of standard street lights. The Public Works Department developed plans showing the existing poles and proposed new poles with overhead wiring. This was sent to Mr. Thomas along with a request for a written response of approval from the neighbors directly affected by the overhead wiring. This has been received and Iowa -Illinois has scheduled the installation of street lights during the first week in January 1983. cc: Jim Brachtel, Traffic Engineer bj4/2 r ---, City of Iowa Cit- MEMORANDUM Date: December 2, 1982 To: City Manager and Members of the City Council From: Michael Kucharzak;W' Re: Central Junior High Tour As requested by the City Manager, I contacted John D. Cruise, attorney for the Iowa City School Board, and requested permission for the City Council and the chairperson of the citizens' Committee on Community Needs (CCN) to. tour Central Junior High School. Arrangements have been made to tour the school at 3:30 p.m. on Monday, December 6. Please use the main entrance on the east side of the building to gain admittance to the school. Frank Ward, principal of Central will assist in the tour. Ms. Margaret Bonney, Chairperson of the CCN, has been invited to attend. bdw4/4 111CROIILnED BY ' ' JORM MICR46LA9 j CEDAR RAPIDS DES MOINES i 0 IF , Preliminary Feasibility Study of Central Junior High School for Conversion into Congregate Housing for the Elderly Iowa City, Iowa 1. I , Prepared by R. Neumann Associates / Architects • Iowa City , Iowa aos5 141CROr ILMED BY JORM MICR4I LAB-- l I CEDAR RAPIDS DES M01^IES � � I j 7 ; i I 0 a� 000 PRELIMINARY FEASIBILITY STUDY OF CENTRAL JUNIOR HIGH SCHOOL FOR POSSIBLE CONVERSION INTO CONGREGATE HOUSING FOR THE ELDERLY DECEMBER 1982 MICR0EILMED BY I I� -JORM MICR46LAB CEDAR RAPIDS • DES MOINES f 1 2095 I TABLE OF CONTENTS. PURPOSE GENERAL SURVEY PROCEDURE EVALUATION GENERAL CODE REQUIREMENTS STRUCTURE EXTERIOR WALLS WINDOWS ROOF INTERIOR WALLS FLOORS CEILINGS FIRE ESCAPES ELEVATOR MECHANICAL SYSTEM COMPARISON COST ESTIMATES CONCLUSIONS 141CRDE1L14CD BY JORM MICR6LA13 f CEDAR RAPIDS DES MOINES F r I I u PURPOSE The purpose of this feasibility study (Phase 1), is to outline some of the basic factors which may affect a decision to convert Central Junior High School into Congregate Housing for the Elderly. Following this r initial analysis, a decision will be made either to continue with a more detailed analysis (Phase 2), or defer further consideration. This study explores the physical aspects of the proposed building and i its adaptability for use as a congregate housing facility. We examine the existing condition and what modifications are required to convert i from an educational institution to one which incorporates housing, to- gether with the estimated cost of such changes. It is not the purpose of this report to comment on factors other than 1 the physical and economic. Social and psychologiralfactors, except as 1 they relate to building architecture, and environment are not particularly i 7 j 7 addressed. Congregate housing must accomodate specific needs and the ability of + this structure to adapt to these needs must be considered in our survey procedure. These include: A. Safety Needs r 1. Safety Features --nonskid tub and shower surfaces; con- trolled water temperature. flush door entrances, safety shutoffs for gas burners, protective covers for radiators, + handrails and slow closing elevator doors. 2. Emergency Signals --one way signal from bedside, two way r communication from dwelling unit. electronic portable one or two way signaling devices. 3. Health Related Features --unobtrusive health care area. C-aOS,j MICROFILMED BY - CORM MIC R(kLAB � trona Rnrlos • Des MolnEs I 7 � ' `I<— — _ J r M 1 I I I I I 7 1 7 4. Security --exterior lighting, locked door arrangement with buzzer, possibly closed circuit television, monitoring of entrance and visibility. B. Self Maintenance Needs 1. Toileting --hardware, fixtures p. Adequate size of unit 3. Air circulation and heat 4. Lighting 5. orientation guides --signs, visibility 6. Provision for handicapped including elevator if over two floors. 7. Work space and activity areas B. Aesthetic decor The success of a congregate housing facility which utilizes the existing Central Junior High School building as a living environment will depend upon the skill used to incorporate the above needs. To determine whether or not this can be done within the parameters of economic feasibility is the purpose of this study. MICRor ILMED BY i JORM MIC RGyLAB j CEDAR RAPIDS - DES MOINES aoBS d,-, _ _ - .. i \ ._ \ � ,mal •, ,;a P- r 4 ' GENERAL On November 9, 1982, R. Neumann Associates, Architects were retained to proceed with Part A of a Preliminary Feasibility Study for Conversion of Central Junior High School to Congregate Housing. Specifically the Scope of Services to be performed includes the following: 1. Meet with Client as required to establish scope of work and I clarify procedure. I 2. Inspect Central Junior High School. 3. Study applicable codes and requirements which affect conversion to congregate housing. q. List basic repair or alteration items together with cost which must be done to change occupancy from an educational facility to - congregate housing use including: I Structural, Mechanical (Htg., Ventilating, Air Conditioning and Plumbing), Electrical, Elevator and Egress Requirements. i 5. Prepare comparison of estimated cost of remodeling Central with comparable new construction. 1 Central Junior High School is located on the Southwest corner of Market and Johnson Streets in Iowa City. This study will consider only the Junior ! High School classroom building for congregate housing and not other f structures which make up the overall Junior High School complex. The I classroom building has been used continuously for educational purposes. Such use is now being terminated and use of the building for other purposes i I examined. I i� tucRorILMED BY j JORM MICRrj1LAB ) i CEDAR RAPIDS DES MOVIES ! i I _ J ab8s L SURVEY PROCEDURE R. Neumann Associates conducted several site visits to Central Junior High School. The purpose of these visits was to observe and record the existing physical condition of the facility. The survey team was assisted and accompanied by members of the City of Iowa City, Housing and Inspection Services Department and school maintenance personnel. Mr. David E. Munson provided liason services. I The general structural condition of the building was observed during these 1 visits to the site. It does not appear that there are any problems of a structural nature that would preclude the use of this building for con- gregate housing use. Few structural cracks are visible and maintenance procedures have been good. To assure continued soundness of the building it is suggested that exterior brickwork be tuckpointed as required. This is currently in fairly good condition and continued maintenance is encouraged. I Subsequent visits involved in a room by room tour of the building for I { the purpose of noting existing conditions relating to the following: 1. Interior Environmental Control (heating, ventilation, windows, lighting and sound). 1 1. Fire Safety Requirements (detection and alarm systems, exit corridors, fire stairs and emergency exits). 3. Health and Sanitation Requirements (kitchen, dining room, t restrooms and nursing facility). 4. Accessibility Requirements (corridor widths, door swings and barriers). MICROFILMED BY i JORM MIC RdLAE3 CFDAR RAPIDS • DES MOINES I , aOSS Ijl r 5. Maintenance Considerations (interior finishes and equipment life). 6. Adaptability for New Use. The aesthetic nature of the interior space can have a significant affect on the attitude and behavior of those individuals who will live here, I assuming a congregate housing program is enacted. The rather formal, 1 institutional environment now projected by this building is not, in our opinion, suitable for congregate housing. Some how, this must be trans- formed into a warm, livable, homelike atmosphere where individuals will feel comfortable, free and wanted. The interior appearance of the new housing facility should encourage a positive response toward the living space. A person who enjoys being in this environment will be a better tenant and a social asset rather than one who wishes he were elsewhere. Because these effects cannot be reduced to factors of a formula or system, the spacial aesthetics of a 1 building are more difficult to analyze and justify through building design. 1 Never -the -less, such simple techniques as color coding special areas can lend a bright atmosphere to the facility. The criteria for a comprehensive evaluation of the suitability of Central Junior High School for congregate housing use includes not only adaptability to applicable codes and construction standards, but also an analysis of the potential of the structure to meet the requirements of the proposed housing program. i , 141CRor ILI•iCD BY i I � -JORM MICR46LAB CEDAR RAPIDS DES MOINES I J J v� EVALUATION GENERAL Central Junior High School is, in general, in fair to good condition and is currently used for educational purposes. The building consists of three floors and an attic. The building is symetrical about a center axis. The longitudinal axis runs north and south and main access to the building is from the east, off Johnson Street. Other means of access and eggress are on the north and south ends of the structure. The building was constructed in 1903, and encloses approximately 39000 gross square feet and 500,000 cubic feet (including attic). CODE REQUIREMENTS Conversion of Central Junior High School to Congregate housing will be 1 governed primarily by the Uniform Building Code, Life Safety Code, and the Rehabilitation Act of 1973, regarding provision for handicapped and such local zoning ordinances which may apply. A call was made to the State Fire Marshal's office on November 29, 1982, asking if specific rules and regulations would prevent or present problems in considering conversion of this educational facility to housing. No specific reasons were offered for not converting the building for con- gregate housing use. Conformance with the Uniform Building Code is the 1 prime criteria. I In our opinion, the following criLeria must be followed: '.. Uniform Building Code - Group R a. Minimum 1 hour fire resistive construction throughout. b. Extend sprinkler system throughout. C. Build three new exterior stair towers. 141CROf MED B1' -CORM MICR4/L AB- LEDAR R4pI05 DES'MOINES i I I J MICROFILMED By JORM MICR6LAE3 1 ceonR RnRlos DES BIDI}!ES J� d. Build new exits as required. e. Install new fire alarm system and smoke detectors throughout. f. Install draftstops in attic to contain area to 3,000 square feet (if sprinklered). g. Fire separations between units may be required. 2. Rehabilitation Act a. Install ramps and elevator as required. Conform to access and egress requirements. b. Install provision for handicapped in restroorns, kitchens, drinking fountains as required. STRUCTURE The basic construction of the building consists of masonry exterior and interior bearing walls with wood floor and roof truss construction. The exterior walls do not show indications of excessive settlement and, in 1 general, are in good condition. The exterior brickwork has been well 1 i maintained and tuckpointing has apparently been done since original 1 r 1 construction. Exterior walls are fairly sound without excessive cracking, spalling or displacement. Perimeter walls, below grade, do show evidence of water infiltration. Efflorescence is evident in the Dining I Room and some classroom areas. Waterproofing from the exterior will, i in all probability, be required along specific exterior wall surfaces. i Structurally the building appears sound and adequate for purposes of i housing conversion. i EXTERIOR WALLS' r Exterior walls are of brick masonry with masonry backup plastered. Walls approximate V-0" in thickness but are not insulated. As indicated MICROFILMED By JORM MICR6LAE3 1 ceonR RnRlos DES BIDI}!ES J� r r -v previously, these walls are load bearing and in generally good condition with only minor tuckpointing required. Trim, facias and exterior wood- work have been well maintained and present paint appearance is good. No insulation is incorporated into exterior walls. WINDOWS ' Windows throughout the building consist of aluminum double hung replacement sash with single pane glass. It should be noted that these windows are 1 totally unsuited for congregate housing use. These are not thermal break windows and heat loss through them is exhorbitant. Infiltration loss around the windows through head and jambs, due to lack of insulation is also excessive. Total replacement is.recommended. ROOF Roof construction consists of wood trusses and wood framing members, wood sheathing and asphalt shingles except on Boiler Room roof, which is a built up type. The roof leaks, has been repaired periodically and shingles are now approximately 10 years old. A complete new shingled roof is recommended. Neither roof nor attic area is insulated and it must he assumed that the resultant heat loss is considerable. INTERIOR WALLS Interior walls are currently either load bearing, as corridor, stairwells and classroom separation walls or non -load bearing divider walls as enclose kitchen, music, library, offices and storage areas. Many of the latter have been added since original construction. For the most MICROFILMED By 1 JORM MIC RCILA B� CEDAR RAPIDS DES MOINES I aoo S J T LF.... 1 r part, these are at least 1 hour walls or better. Pion -load bearing walls will be, for the most part, removed to accomodate new walls as installed for housing units. FLOORS Floors, except those on grade, consist of wood floor joist construction, wood sub -flooring and finish wood flooring consisting of 2 1/4" X 3/4" I T & G Maple strips. 1 On grade floors, particularly Dining Room, Kitchen, Kitchen Storage and i Boiler Room, are of concrete. The Dining Room has asphalt tile floor covering. CEILINGS I Ceilings throughout the building consist of a variety of materials. The first floor corridor ceiling is of wood, the Dining Room ceiling looks 1 i suspiciously like wood fiber and others are an assortment of plaster or i suspended ceiling tile. The different design concepts required for the installation of congregate housing will require new ceilings, lowered in 1 most instances and certainly of Class A fire retardent material. New ceilings are recommended for all renovated and remodeled areas. FIRE ESCAPES The present fire escapes are steel, exterior supported with grate type handrails and risers with excessive height. They treads and landings, open ha i I are totally unsuited for use in a development for elderly housing or for that matter an educational facility. If this building is considered for congregate housing use. new stair towers E ? I MICROFILMED By JORM MICR6LA6 - -, CEDAR RAVIDS DES MOINES I J J�l r (2) must be installed as replacement for the present totally inadequate fire escapes. An additional means of eggress must replace the present fire exit from the I ground floor Dining Area. The existing exit is by way of a wood ladder arrangement out a window at grade level. This must be replaced by an exterior entrance and stair to grade. Whether or not an exterior ramp for handicapped will also be required must be ascertained. ELEVATOR i Central Junior High School does not have an elevator. If the building is to be used for housing for elderly persons, an elevator must be installed. MECHANICAL SYSTEM Heating, Cooling and Ventilation A. Site Observations 1 I. Boiler is an old Pacific fire tube boiler which has been converted to gas firing. 2. The heating system is two pipe low pressure steam. 3. There are cast iron radiators in most rooms. The number of radiators is a minimum. I 4. The boiler is shut off when school is not in session when 1 1 the outdoor temperature is above 34 degrees outside. The boiler is operated on low fire when the outside air temper- ature is below 34 degrees. 5. There is a large multi-purpose central heating and ventilation air system that is only operated two or three times a year. Those times according to the maintenance man are when it is very cold and windy outside. n MICROFILMED BY CORM MIC RIIJLAB CEDAR RAPIDS DES MOINES I r 'il_ 6. There is not heat in the attic. 7. The steam supply piping is insulated. 8. The heating system has an old Johnson Service control system with automatic control valves on the radiators and on the ventilating air system. 9. There do not appear to be any fire dampers in the ventilation system. 10. There is a make-up air system for the kitchen. 7 11. The range hood in the kitchen has an exhaust fan in the adjacent storage room. 12. The dishwasher has an exhaust overhead but no exhaust connections to the dishwasher. 13. The building has a 2" domestic water service. i14. The water closets are floor mounted with flush valves. 15. According to the maintenance man the sewers work. 1 16. The building has a partial sprinkler system. B. Comments 7 1. Heating, Cooling, and Ventilation a. The primary heating source of the building and adjacent � I building is an old Pacific fire tube boiler which has been I converted to gas firing. The boiler appears to have orig- inally been fired by coal. The boiler appears to be in usable condition. b. The heating system is a two pipe low pressure steam type. It is difficult to access the condition of the piping without removing a section of pipe and inspecting it. But I since the piping is old you can assume the piping, partic- ularly the return piping, will provide some leaking conditions A 0195 I. I MICROFILMED BY � _I ,J �, ! -JORM MICRbLA B.. \ ") I CEDAR RAPIDS DES MOINES ■ r j'-'1 p C E D WA t110R0E ILI-0ED 61' ' � JO P. A4 MlC RE1LA9- i � 1 � CEDAR RAPIDS • DCS Id01NES ' t 1 in the foreseeable future. A steam system is not as desirable as a hot water system because the steam heat is more difficult to control and overheating in the spring and fall is common because of the warm piping. A hot water heating system would be more appropriate. because control would be better and the system 'Mould be quieter. c. There are cast iron radiators in most rooms. The number of radiators is a minimum. Because the conversion to housing would mean many more rooms, many of the existing radiators will be larger than required and many more will be needed. Cast iron radiators are very seldom used any more and might be difficult to obtain and because of their size and appearance they are not the modern and not the preferred mehtod of heating rooms. d. There is a large multi-purpose central heating and venti- lation air system that is only operated two or three times a year. Those times according to the maintenance man are when it is very cold and windy outside. The system would not be usable and therefore would need to be 'abandoned or removed. e. There is no heat in the attic. f. The steam supply piping is insulated. g. The heating system has an old Johnson Service control with automatic control valves on the readiators and on the ventilating air system. This system would have little value in the remodeling. h. There does not appear to be any fire dampers in the ventilation system. p C E D WA t110R0E ILI-0ED 61' ' � JO P. A4 MlC RE1LA9- i � 1 � CEDAR RAPIDS • DCS Id01NES ' t 1 k J � 1l I, MICRONUIED BY JORM MIC R#LAB ? I� 7 CEDAR RAPIDS DES I401YE5 + I I i. There is a make-up air system for the kitchen. j. The range hood in the kitchen has an exhaust fan in the adjacent storage room. k. The dishwasher has an exhaust overhead but no exhaust connections to the dishwasher. 1. The building is not cooled, if cooling is desirable cooling equipment would be required. If through -the -wall units I are used, they would be more expensive in this building as compared to a new building because of the demolition. It interior units are used, they could possibly be placed above the high ceilings fairly easily. M. The apartments would need toilet and range hood exhaust. The length of the exhaust ducts and therefore the cost will be greater than for a new building because a new building would be more compact. j n. If a lot of money and effort is spent remodeling the 1 building, a new heating system would be appropriate. The cost of a heating system in a new building would be less than one in this building because of the demolition cost and because a new building would be more compact and more efficiently arranged. A central heating system would not allow individual metering of fuel costs. If individual metering is required, then the heating system must be gas fired units in each apartment or electric heat. 2. Plumbing a. The building has men and women's toilet rooms with multiple fixtures. These fi;,tures are not in the proper location I r k J � 1l I, MICRONUIED BY JORM MIC R#LAB ? I� 7 CEDAR RAPIDS DES I401YE5 + I I 0 I A new building will be more compact and more efficiently designed and thus the length of piping, sewers, etc. between i bathrooms would be shorter and therefore cheaper. 0 LL =19 MICROf ILMED 01' JORM MIC R46LAB CEDAR RAPIDS • DES MOINES for housing. Converting the building to housing would mean all new plumbing fixtures and they would be located in every apartment throughout the building. b. We believe the building has an adequate size sanitary sewer. We do not know its condition but it is -reasonable to assume it is in satisfactory condition since the mainten- Since the existing toilet rooms are at one end of the building and since new plumbing fixtures will be added throughout the building, many interior sewers and vents will be required. The new sewers could be connected to the existing sanitary 1 sewers within the building. c. The 2" water service appears to be adequate in size, however j we do not know its condition. d. The hot and cold water piping in the building is old and is limited in its distribution. If the building is converted to housing all new hot and cold water piping would need to be provided for the many new plumbing fixtures. e. i 1 The hot water heater and tank might be usable. f. The existing plumbing system except for the water service and sanitary sewer to the building has very little value. As a matter of fact, it may be a disadvantage compared to a new building because of the cost of demolition of the unneeded existing fixtures, piping, and kitchen equipment, and revising an old sewer and an old water service.. A new building will be more compact and more efficiently designed and thus the length of piping, sewers, etc. between i bathrooms would be shorter and therefore cheaper. 0 LL =19 MICROf ILMED 01' JORM MIC R46LAB CEDAR RAPIDS • DES MOINES 3. Fire Protection I a. The building has a partial sprinkler system. Many of the rooms in the building have sprinkler heads, but the attic and other scattered rooms around the building do not. Since the building will be subdivided and ceilings lowered, the spacing and locations of most of the sprinkler heads i will need to be revised and unless the sprinkler system is i abandon (which would be unwise with all the wood construction in the building), the unsprinklered rooms would need to be i sprinklered to provide proper protection and to obtain favorable insurance rates. Therefore the existing sprinkler system has some value but would need major revisions. We believe the sprinkler system revisions would cost about 70 percent of a totally new system. l 1 b. Hand held fire extinguishers would need to be provided I throughout the building. c. If the kitchen range hood is retained, it should be provided with an automatic fire extinguishing system. r 4. Electrical a. Because the housing conversion will mean lower ceilings and many more interior walls, the electrical system will be almost entirely new. b. The existing light fixtures are not appropriate for housing so many new fixtures will be required. c. The existing fire alarm system would have to be completely revised and almost all new components would need to be installed. r aoss k. MICRorIUIED` BY ,1 DORM MIC R¢LAB CEDAR RAPIDS DES MOIYES � � r I r d. Almost all electrical receptacles will need to be new because of the many new walls. e. New electrical panels will be required because of additional required electrical circuits and a redistribution of location of the electrical load. f. Substantial cost will be involved in the electrical demolition. g. Some of the existing electrical conduits may be usable but because the existing wires would need to be removed and because the loads will be in different locations, most wiring will require new conduit. h. A new electric service would probably be required because of the elevator motor load and possible air conditioning load. i. If individual electric meters are required for each apart- ment, the cost will be higher than a new building because of the long runs of conduit and wiring. Based on our initial visits, it is our opinion that the mechanical and electrical systems will need to be almost entirely replaced if the building is converted for housing purposes. The water, sprinkler, gas and sanitary sewer services will probably be adequate. i MICROFILMED BY JORM MICROLAB J CEDAR RARIDS DES MOVIES i I ;LO 9145 J9 1 COMPARISON CENTRAL JUNIOR HIGH REMODELING Central Junior High encloses approximately 39,000 S.F. and approximately 500,000 C.F. of space. Of this approximately 14,600 S.F. is rentable living space and 24,400 S.F. service and aElxilliary space. For purposes of our study, the rentable space is allocated as follows: Units Type S.F./Unit Total S.F. 3 Efficiency Apts. (1 Bedroom) 500 1,500 6 2 Bedroom Units 707 4,242 10 2 Bedroom Units 660 6,600+ 2 3 Bedroom Units 1,100 2,200 Total 21 14,600 This combination of units has not been established by program data or requirements but rather by using existing space, defined by bearing walls and adjusting apartment units as necessary. Refer to Plate B1, 32 and B3. The size and number of apartment units is governed by the bearing walls which surround spaces and the amount of exterior wall. Ten percent of the floor area must be glass and 1/20 of the floor area must be operable to provide ventilation. This ratio of service and auxillary space to the rentable area is partic- ularly high. This is not unusual in a remodeling project, however, since the required elements are not organised according to a designed functional layout, but rather fit into existing space with certain restrictions and parameters. 1 During the 1981-82 yearly period, operational costs for Central Junior High School were: Electric Service $12,000 Gas Service 23,000 Water and Sewer 1,200. B i IIICROFIL14ED BY i 1 ' JORM MICRbLAB- ? CEDAR RAPIDS DES MOINES f ' I , _ J v r The above costs reflect the fact that the building is uninsulated and has a disproportionatly large tubage to square foot area. 14ICRorILMED B1' -CORM MICROLAB I CEDAR RAPIDS DES MD CIES 7 � � The following factors involving construction and adaptability must be considered if Central Junior High is converted to Congregate Housing. A. Physical: 1. Site: Access to building and parking. I 2. Provision for Handicapped Ramp to building, elevator and means of egress. 3. Exterior condition of roof, perimeter walls, copings, chimneys, i gutters, downspouts, sidewalks and windows. 4. Remodeling necessary for code requirements, (UBC) stairwells, means of egress, fire protection, etc. 5. Interior remodeling necessary for apartments, service and ' auxilliary areas including: a. General construction b. Structural c. Mechanical -HVAC, plumbing, sprinklers, fire protection, alarm system and intercom. d. Electrical e. Special equipment (for elderly and handicapped) f. Energy efficiency: insulation, boiler efficiency, windows, etc. g. Operational and maintenance cost / I B. Adaptability: 1. Do the new functional space requirements logically parallel those of the discontinued educational facility or are the existing spaces inappropriate for the new useage? Is the cost of making the necessary changes to accommodate this new usage beneficial as compared to new construction? - 2. Can the existing educational facility be made psychologically pleasing, incorporating character and aesthetic value as ' necessary for a first rate cunaregate housing facility? 14ICRorILMED B1' -CORM MICROLAB I CEDAR RAPIDS DES MD CIES 7 � � r M It Our preliminary estimates of cost compare remodeling of Central Junior High School and new construction. Remodeling offers no advantages insofar as cost. NEW CONGREGATE HOUSING FACILITY A comparable new housing facility will require approximately 22,000 S.F. ! and approximately .242,000 C.F. of space. Of this, approximately 15,400 S.F. I is rentable living space and only 6,600 S.F. service and auxillary space. I For purposes of our study, the rentable space is alloted as follows: Units Type S.F./Unit Total S.F. 4 1 Bedroom Units 580+ 2,344 16 2 Bedroom Units 816 13,056 Total 20 15,400 This combination of units can be designed to functional standards depending on site characteristics. Refer to Plate A. The ratio of service and auxillary space to rentable space is low compared 1 to the remodeled space of Central Junior High School. I i Operational costs would be expected to be considerably lower than the remodeled Central Junior High space. An R value of 30 through the roof and 15 through walls, together with thermal -break, double paned glass windows and an efficient mechanical system would reduce operational costs I to a minimum of at least one half the current expenditure for Central Junior High School. D A i • MICROFILMED BY i •I -CORM MIC REIL A9 CEDAR RAPIDS DES 140NES I I I _ J ESTIMATE n aOi?.S HIDROEILMED BY CORM MICROLINB CEDAR RAPIDS DCS MOINES J V PRELI141NARY ESTIMATE OF COST FOR CONVERSION OF CENTRAL JUNIOR HIGH SCHOOL TO CONGREGATE HOUSING Quantity Unit Cost Subtotal Total Item 1. Exterior: lJaterproofing below grade walls to prevent 3/cf 4,800 water intrusion. 1600 cf Excavate and install Bentonite (Volclzy) 800 sf 1/sf 800 panels. Waterproofing brick-- silicone spray 2 coats 25000 .39 9,750 15,350 I 2. Tuckoointinc-Assume 25,000 s.f. @ 15% 3750sf 3.00 11,250 3. Install new means of egress from Dining I Area including door, retaining walls and L.S. 17,500 ramp Drain at bottom. 4. Install asphalt new shingles and flashing 15000sf 130/sq 19,500 over existing (350 +psf). Install new single membrane roof and 600sf 4.50/sf 2,700 22,200 flashings over Boiler Room. 5. Install new windows--Thermal-break-aluminum double glass, solar bronze exterior pane L S 75,000 A -j sash. 6. Install 3 new stair towers complete with 2 25,000 ea. 50,000 doors, landings stairs, etc. 13,000 I 7. Provide exterior illumination. L.S. 1,500 1 8. Provide new sign..L.S. 1 195,800 j Total Exterior Work 1. Interior: Insulate attic area R.30 fiberglass. 11000 .13/psf 8,030 (Includes locate a mark elec. outlets.) 2. Provide fire stops (draft partitions) not L.S. 7,500 to exceed 3000 sf. 3. Install elevator (5 stop) and _amp L.S. 150,000 "4. Demolition as required. Install new par- titions for apartments. Total cost except HVAC 8 elec. including carpets. Assume 65°, of square foot area is usable for apts. and living (exclusive of base- 20987sf 26.44 556,995 ment) 32287 x 65 = 20987 s.f. n aOi?.S HIDROEILMED BY CORM MICROLINB CEDAR RAPIDS DCS MOINES J V M. . • Item Quantit Unit Cost Subtotal Total 5. As above except general remodeling, corridors & service areas. 32287 x .35 = 11300s.f. 11300sf 13.22 149,386 Total Interior Work 871,911 *4. Total remodeling cost assumed to be $52.20 p.s.f. (from Means Cost Data 1982) Median for Housing = 47.45 + l00 (4.75). 10% added for demolition'and removal. 15.76 for Mech. & Elec. & Sprinkler. 36.44 for general construction. Credit $10.00 for existing walls and services in housing area. $10.00 additional for service area. I Mechanical -Electrical: 1. eng& Housing area): r Heatiating & Vent. AC H 20987sf 3.74 78,491 Plumbing 20987sf 5.00 104,935 * Sprinklers 20987sf 1.00 20,987 204,413 2.Mechanical (Service): * HVAC 11300 3.25 36,725 * Plumbing 11300 4.30 48,590 85,315 3. Electrical: 20987 4.62 96,960 * Housing Service 11300 3.50 39,550 j Firealarm System L.S. L.S. 7,000 3,500 147,010 Intercom System Total Mechanical -Electrical 436,738 TOTAL PROJECT COST r ' 1,504,449 Mote: Cost of movable equipment, kitchen equipment, landscaping and fees is not included. i *1. Sprinkler System -- Assume add 8,000 sf @ 2.40 to existing. 0 *2. Mechanical System -- New HVAC median level - Means Cost Data 1982 3.25 + 150 = 3.74 s.f. Plumbing -- 4.30 + 15 = 7.25 *3. Electrical System -- Medium level cost for new housing for elderly from Means Cost Data 1982 - 4.20 + 101' = 4.62 j i41ckor ILMED BY JORM MOCR46LA13 -� I CEDAR RAPIDS • DES 140INES ;R0QS I 1 I s' 1 i ESTIMATE PRELIMINARY ESTIMATE OF COST INSTRUCTION OF NEW CONGREGATE HOUSING 22,000 S.F. @ $45/S.F.* _ $990,000** *Costs for typical elderly housing projects constructed during 1982 ranged from $36.75/S.F. to $60.75/S.F. SOURCE: Building Construction Cost Data 1982, Robert S. Means Co., Inc. **Estimated construction cost is exclusive of land costs, site development costs and fees and other expenses. r I 11ICRDEILnED BY ; -JORM MIC ROLAB f 1 � CEDAR RAPIDS DES M014ES ' I a G 8's J� CONCLUSIONS The prime consideration in comparing remodeling Central Junior High School for housing and new housing construction is the use of the pro- grammed space. Planning specifically in accordance with program require- ments is obviously much more efficient since the space is allotted I without waste and with a much larger percentage of usable living space. I Central Junior High School was designed for another use and the space requirements for housing do not necessarily match those for an educational facility. The 15'-0" corridors with bearing walls each side are hard to use as living space. True, this square footage can be used for auxillary space, lounges, chases, restrooms, mechanical and service areas, but not as living space. The abundance of interior space, created by the depth of the Central Junior High building is also hard to handle insofar as apartments are concerned. Housing structures require exterior walls I I for windows since almost all apartment space requires at least one window. I Excessive interior space made inflexible by bearing walls is a major disadvantage in the renovation of Central Junior High School into housing units. j The second disadvantage to the use of Central Junior High School is the excessive tubage incorporated into its design. Central was designed in 1 the grand monumental Beaux-Arts manner. Large spaces, wide corridors and stairways coupled with high floor to floor heights, create large cubic foot areas. These are out of character with a more intimate, warmer, and less institutional housing facility. Apartments and living areas do not need these high ceilings. pigs j c MICROFILMED BY DORM MIC AB I r CEDAR RAPIDS DESSMOINES IBES I r r 3� 7 Floor to floor heights are as follows: Ground to first floor 11'-10" First floor to second floor 13'-4" Second floor to third floor 17'-3 It is easy to see why our tubage is so great as compared with floor area. This of course, adds to our heating and cooling load, increases maintenance costs and makes accomodations for handicapped more difficult. The ratio of rentable living space to service areas is much more favorable in new construction. Total tubage of a facility designed for housing rather than an existing space converted to housing is less than half. This of course is reflected in operational cost and maintenance. Renovation of Central Junior High School can be exceptionally well done with unique, interesting, living units. We see no cost advantage, however, in renovation of Central Junior High over construction of a new facility with comparable living and service areas. Exclusive of land cost, location considerations over other factors not associated with physical or economic considerations, one can only conclude that construction of a new facility is a more prudent course of action. r 1 I MICROFILMED BY I JORM MICR#LAB j CEDAR RAPIDS • DES MOINES I J M: Irl i 7 Floor to floor heights are as follows: Ground to first floor 11'-10" First floor to second floor 13'-4" Second floor to third floor 17'-3 It is easy to see why our tubage is so great as compared with floor area. This of course, adds to our heating and cooling load, increases maintenance costs and makes accomodations for handicapped more difficult. The ratio of rentable living space to service areas is much more favorable in new construction. Total tubage of a facility designed for housing rather than an existing space converted to housing is less than half. This of course is reflected in operational cost and maintenance. Renovation of Central Junior High School can be exceptionally well done with unique, interesting, living units. We see no cost advantage, however, in renovation of Central Junior High over construction of a new facility with comparable living and service areas. Exclusive of land cost, location considerations over other factors not associated with physical or economic considerations, one can only conclude that construction of a new facility is a more prudent course of action. r 1 I MICROFILMED BY I JORM MICR#LAB j CEDAR RAPIDS • DES MOINES I J M: r I I City of Iowa City MEMORANDUM r\ Date: November 19, 1982 Ir To: Neal Berlin, City Manager �� From: Larry McGonagle, Transit Manager. l pJ Re: Wardway-North Dubuque Route Effective January 1, 1983, the Transit Department proposes changing the schedule for the Wardway-North Dubuque route. This will afford us a better opportunity to serve the major generators on this route. At present we arrive at the Mayflower Apartments on the North Dubuque end (inbound) at the same time as CAMBUS. This apartment complex is occupied almost completely by University of Iowa students. Since we are arriving at the same time as CAMBUS, everyone rides the free CAMBUS. By changing the times we will begin arriving in between the CAMBUS trips. This might help us to increase ridership. Mayflower Apartments is the only major generator on the North Dubuque portion. On the Wardway end, this change will allow us to arrive at Moore Business Forms prior to their shift changes. This may encourage an increase in ridership. We feel that this change will not negatively impact this route. At present it has the lowest ridership. What we are hoping for is to increase ridership so that we can continue justifying this route's existence. tp5/4 I C'liiJ MICROr ILMED BY JORM MIC RbLAB 1 � CEDAR RAPIDS • DES Id01NE5 7 j 7 City of Iowa City MEMORANDUM DATE: December 1, 1982 TO: Iowa City Council FROM: City Clerk RE: Beer/Liquor License/Conditional Approval FOR YOUR INFORMATION --Conditional approval was given at the 8/31/82 Council meeting to Felix & Oscars, 5 South Dubuque St. for Sunday Sales/Beer-Wine License. They have submitted, after the 90 -day period, the required information which allows them to retain their permit. i 141CROFIL14ED BY I JORM MICR6LA9 - 1 CEDAR RAPIDS • DES MOINES r I I 1 r II/'L9/ti2 _-.' ; CORALVILLE/IOWA CITY CONVENTION BUREAU 1982 REVIEW COMMITTEE The purpose of this committee is to consider only aspects and matters deal- ing with the establishment (or expansion) of a viable convention and tourism organization for this area. This consideration is necessary because of the Council's pledge to commit 250 of the total motel guest tax for this purpose. The committe's work shall include, but certainly not bo limited to, items such as: Shall there be memberships; name of expanded organization. Financing during transition period. Development from the present privately funded, to a publicly financed organization. Need for incorporating and procedure. Location of Office, affliliations, etc. Cooperation with similar organizations. Need and make-up of a governing board. Orderly development of budgets to maximum expenditures. Any other considerations. All of these items must be considered in such a way that there will be room for alternatives. The individual members should keep the appointing entities apprised of the progress. Minutes of major results will be requested. All reports must be in the form of recommendations to be considered by the City Councils of Iowa City and Coralville. Since the University business is of great importance to the motel trade, it is hoped that resource persons from the University will be asked to participate in certain aspects of this pro- cess. I will be most pleased to work with the committee in obtaining other resource persons as may be desirable. Of course, the committee may ask anyone what- soever to supply suggestions and information. It is hoped that acceptable recommendations will be available within 90 days. All chairpersons or rep- resentatives of the groups listed below agreed with the principle of this committee. The Mayors and Council of both communities also agred with this process. I have been given the following names and therefore, I am appointing these persons to the committee. We thank everyone for their willingness to serve. Iowa City Motels; Ms. Sheila Boyd. Iowa City/Coralville Convention Bureau; 11s. Emilie Rubright. Coralville Chamber; Mr. Robert Mitchell. Iowa City Chamber; Mr. David Haney. Coralville Council; Council Member David Holcomb. Iowa City Council; Council Member John Balmer. Coralville Motels; 11r. Neil Trott and Mr. Robert Winter. Member at Large; (appointed by Coralville Mayor) Mr. Leonard Greenwood. The committee shall have a chairperson who will be responsible for calling of meetings, creating of study committees and the complience with any ap- plicable state statues among other items. City facilities may be used for meetings, etc. This committee will be disolyd)after their work is com- pleted. I M. Kattcriee Mayor 111CR0(ILMED BY JORM MICRbL.AO CEDAR RAPIDS . DES 1401AES P-08'$ 7 J LETTER AND QUESTIONNAIRE SENT TO MELROSE COURT PROPERTY OWNERS 12/2/82 November 30, 1982 Dear Property Owner: The City of Iowa City is considering a construction project to improve Melrose Court. This will include replacement of curb and gutter in need of repair, the addition of curb and 'gutter where none exists, the replacement of the sidewalk along the west side of Melrose Court with a new five foot sidewalk, the replacement of the sidewalk along the east side of Melrose Court south of Brookland Park Drive with a four foot sidewalk, and also necessary grading, sodding, driveway replacement and retaining walls. The City is requesting information from you which will affect the final decision concerning the project. Please take a few minutes to answer the enclosed questions and return the questionnaire in the ' enclosed stamped envelope. If you have any questions, call me at 356-5143. Si rely your , Frank Farmer City Engineer Enc. bj/sp aogy 111CR0(ILMED BY CORM MIC ROLAB J CEDAR RAPIDS DES MOINES LL r f 'rl MELROSE COURT QUESTIONNAIh_ 1. Are you in favor of this project if the City funds the entire project? _Yes _No 2. Are you in favor of this project if it is assessed wholly or partly against the abutting property? _Yes _No 3. Would you object to having the existing power poles moved to the east side of Melrose Court? Permanent easements would be required from the property owners on the east side of Melrose Court north of Brookland Park Drive. _Yes _No 4. If utilities were placed underground would you object to paying for the conversion of your electric service from overhead to underground? Estimated average cost per residence to be paid by the individual resident would be $850. It could be lower or higher depending on the condition of the electric service in your home which may have to be upgraded to meet code requirements. _Yes _No 5. Construction easements would be required from most property owners if this project is undertaken. Would you be willing to give construction easements to the City at no cost to the City: a. If the project is assessed to abutting property? Yes No b. If the City funds the entire project? Yes No i._ 111CUNU1ED DY j JORM MICR6LA6 CEDAR RAPIDS • DES MOVES i _ J r V.4. 6. Permanent easements would be required at various locations for placement of electrical transformers if the utilities were to.be placed underground. Would you be willing to give these permanent easements to the City? a. If the project were assessed against abutting property? Yes No b. If the City funds the entire project? Yes No 7. Comments: MICROFILMED BY I JORM MIC R6LA13 CEDAR RAPIDS • DES MOINES J ao89 J� CO) BIG BROTHERS / BIG SISTERS OF JOHNSON COUNTY A YOUTH PROGRAM OF THE JOHNSON COUNTY EXTENSION SERVICE December 1, 1982 Iowa City City Council c/o Mayor Mary Neuhauser Iowa City Civic Center 410 E. Washington Street Iowa City, Iowa 52240 Dear Council Members: I am writing to inform you that Margaret Passeri has been hired as the new coordinator of the Big Brothers/Big Sisters of Johnson County program. She will take over her new responsibilities on Monday, December 13. We look forward to a smooth transition and are excited about the future with Margaret's enthusiasm and leadership. Thank you for your past support of our program; it has been a pleasure working with you. Sincerely, n Peterson BB/BS Coordinator JP/jsc 3149 Highway 218 South Iowa City, Iowa 52240 Phone (319)337-2145 l MICROFILMID BY I f 1 JORM MIC R/LAB CEDAR RAPIDS DES t401YE I _ J Q ao?a v a 06 Cedar Rapids/Thursday. Dec. 2, 1982 SEEN Hewlett Packard confirms CR. move. The new Hewlett Packard Co. The office, incidentally, had been said, there Is room for perhaps four At the press conference, . he office in Cedar Rapids will be part of located In Cedar Rapids from 1971. more buildings on the site, with added that he believes new Indns• a new office park being developed in to 1973, when it moved to Iowa City. perhaps two more tenants the size of tries • with thousands of employees the southwest • quadrant of the city But the business now has outgrown Hewlett Pickard. are a thing of the past for cities die by Engle Development Co. the Iowa City quarters at 2415 Heinz President Robert Kazimour of the size of Cedar Rapids. But he sild8e Work on the new office building Road. Chamber of Commprce presided at believes it still is possible to: Mrs will start immeditely, the two com• - Employment at the Iowa City the press conference, but said the _ companles with 500 to 700 employ Engle firm was "the rime mover on ponies announced Wednesday ala office totals 38, company spokesmen g P ees, and the Chamber Is "working press conference in the Chamber of said, of which 10 are support and this project:' He also described now with some of that Commerce building: Occupancy is administrative personnel and 28 are. owner Wayne Engle and the comps;, Hewlett Packard, headquart#t(W expected next spring. sales and service personnel who are nies he heads as "high -type people at Palo Alto, Calif., Is the world's The office will house administra- ou the road a great deal. who service their clientele well and largest manufacturer of electronic live and sales and service personnel The spokesmen said they expect serve the city well." instrumentation and among;. the for Hewlett Packard electronicand the staff will remain pretty much the Kazimour said the Chamber wel• leaders In computer manufactdrl0g• medical instruments andSomputers. same after the move. Actually, they. comes 'the addition- to Hewlett It has about 67,000 emploes The company has another branch said, about half the staff members Packardito Cedar Rapids for the,worldwide. office at West Des Moines., already live In Cedar Rapids: type of company It is. "I.think we It had lotal'sales of $4.25 billjon Price tag on the new building was They said the building will offer will. become a hittech area,". he in the .12 months ended Oct. 31; Arid not announced, but Fred Timko of room for expansion to perhaps twice told The Gazette,' and I believe this reported earnings for that perigd,;pf the Engle firm said It will be thd'. number of people now em- will be the first of many".. such $383 million, or $3.05 per share] an financed by a $1 million industrial - ployed, . but that no immediate additions. - Increase of 25 percent froall;.e revenue bond issue requested from x nsion Ii planned. Any expen• "This Is our future," he added.' previous year. the city. He said the building cost -would be something less than that figure. The Cedar Rapids City Council has scheduled a hearing on the bond Issue for Dec. 22. Hewlett Packard spokesmen = Len Petraitis, general manager, and Jerry Fagerland, business manager — confirmed the report in Wednes- day's Gazette that the office being constructed here will replace one now. located in Iowa City, They declined to comment on reports from Iowa City that the move. may have been caused by failure of Iowa City to act sooner on a sewer lift station for a new office park in that city. They said only that Hewlett Packard was moving here "for business reasons." e Pa sion will depend on the economy, .they said.: - - . Timko said the Hewlett-Packard building will be a single -story, contemporary wood frame building at the Intersection of Wiley Houle• • vard and 22nd Ave. SW; not far from Westdafe Mall. It will provide 14,1100 square feet ;of office space. The Engle firm will build and own the building- and lease It to Hewlett Packard. Provision has been made for future expansion of the building. Engle has purchased live acres at the site, Timko said, and expects to build additional buildings thele. At' this time, however, It has no additional tenants and no . more specific building plans. Depending on the tenant, Timko 111 CROs IWED 0y �L L JORM MICROLAO CEDAR RAPIDS • DES 1.101'IES� r L THE WAL rREET JOURNAL, Municipality Inc. Fairfield, Calif., Relies on Business Savvy To Raise Revenues in..Wakip of Tax Revolt BY Rev VIQtm seglJatyorteroJ Tx. wA- sr..vr JOY... L FAIRp7EIJ), Calif.—Making sure the lo- cal budget stays balanced might be a chat• lenging enough goal for most municipal off. dals; but for B: Gale Wilson, the city man• ager of this Northern California community, Profit Is the name of the game. That's. why the SAyear-old Mr. Wilson doesn't hesitate m don the hat of a real• ist or an eestatenn� speculator, eur. from time to lienture me. Playing these roles, he has. engineered a spate of business deals o behalf of the city's 61,600 residents. In turo, his civic business savvy has helped Fairfield stay financially strong despite the passage of Proposition 13 In 191& °batch substamlatly pared the property tax rate h Cal!(omla "The tax revole.. , is here m stay,, rea- sons Mr. Wilson, so "we have to guarantee future revenues by creating new revenue sources." Indeed, these are trying times for muNr' ,pal governments across the country. De• cutting federal and state aid to cltles, conn• pled with the ongolrtg recession and'ontlnu• log taxpayer skepu over government fazing and spmdtng habits, have created an tetityt budNtsmanyand,cities. As a� reswt,ammany of Kase muniC! 11 are following Fatr, fleid's lead and are tryMg to turn clvic prop• erty and other assets Into money-makers rather than budget- busters. Gas wells to City Dumps Eansu City, Mo., for example, plans to start exploring son for natural gas beneath city lands. some clues are beginning to pay bureaucrats "performance commissions" to 1 stir up entrepreneurial zeal. Many other cit• les have revived user fees for recreational /facilities or have unloaded unneeded real es. tate.And Portsmouth, N.H., has even turned I Its city dump Into a moneymaker by burn. Ing solid waste to create steam that It sells f to nectar military Installation for $2 mil. I lA "A long list of cities are either doing says Mark Keane, thethings like this or are xecutive directto or ° of the International City Management Aso- elation In Washington: Perhaps no city, as though, hes been as enterprising as Falx he Under Mr. Wilson's guidance, the city has tealned up with a Private developer who In Is building a large shopping mall; It has built and leased to the federal government a d0 new ptoi-office building; it has become a hem Partner In a regional hydroelectric power venture; and It has pians on the drawing board to build several small commercial Mc electricity and steam "co-generadon" m plants.' pow ft:e hard•trargelaing Mr. Wilson also. has won an option for Fairfield to purchase We local cahle televislon system In 1991 at We depreciated value shown then In the tax records. And he -is negotiating yet another option to purchase an exotic $409 million "wind farm" of 36 Imposing 200•fot• tall windmill electricity generators going up west of lows. If everything works, the farm could generate 126 megawatts of power from a steady breeze—electricity the city could sell to Pacific Gas &Electric Cq. '•We don't have one nickel of tax money at risk" 0 that experiment, he, "Hough we may wind up owning It." 'A Piece of the Pie' The bottom line for all these deals, ac• cording to Mr. Wilson, Is simple: "II some. body comes to town with an Idea for making money, we want the city to get apiece of the Pie," - It's not as If Fairfield Is hard-pressed for revenues, or that It must skimp on servtces and facilities to make ends meet. Rising from a park near the center of the trey shaded town Is the gleaming and expensive fvie center, containing municipal officesthe ce and fire de , blic library lan other city w7dings, olitments, thece offl cers ted of. ficesapunch comuters in ndall the fire trucks are nneew. Pot• holes here have a short life expectancy, and Mr. Wilson makes a handsome salary of $70r 000 a year. A Healthy City Even so, Fairfield's $13.2 million general budget for the fiscal Year ending June 30, 993, won't be difficult to meet. For one thing; Fairfield, during each of the past Three years, has had at,I 2sl a 14%. budget SurP)us. Consequently, over the years the owIts n hterest income as earned cash ac ountsninfiscat 1982, to example, "we earned more money from sed funds than we did rom sales and Prone on our LLrty taxes combined." says Mr. W1 rr. Fatrfleld compares so favorably with Cher Cat,tornia clues that this year the state assembly's office of research listed It eaatt . thatNnre In c'exccellentout btN��larl Of all the venturei Fairfield Is par iclpat• Ing In, Mr. Wilson has the highest hopes far several electricity and steam highest hopes s for ects around the I Sim enough; urge buildings often own. The Idea is can be led most efficiently by steam, and that same steam can be used to generate elec. Ity• Those small generators, Il they are anaged Properly, can produce so much a er that the sale of Pay for'the entireexcess electricity can h o system In a decade or n 1'bat's not '!11RKILMPC .:'• JORM MICROLAB Cl DAR gAPIDS • P-1,'1VIrS Currently, the city ts butlding a 11.2 mil• hon o-generstlon plant to heat and power the civic here saycenter wW save FaIrfleld analestimateedd $12Qp00 a year in, utility bills. "In nine years, our (capital) Costs will be fully cov Joseph L shits, the—Wrector of Public wered by electrical sales.,- orks. "BY e end of the 10th year, annual Income from thus source should be a half -Million dollars a year." Joining Forces Alm oining forces with thelocal Anheuser-Busch Is Cos. brewery to build a $15 mtluon steam co- generation plant at the city sewer plant that, among other things, will help the brewery sidestep regulatory restraints on Its growth. Steam produced by the city•awrted generat- Ing Plant would eliminate the need for one of the brewery's. three boilers, which In tum would reduce the brewery's release f pouu. tants Into the air. Accordingly, the brewery then Could expand Its capacity without fear. Ing Potlutioa•Control hindrances. Besides sailing steam to the brewery, the city could• atw sell extra power to PGo. Mr. Wilson sees the Possibility of several co-goeradon deals: Of Course, they are all dwarfed by the $400 million wlnd•farm prof. ect, whlclt_k the largest of Its kind any. where. Still, Fairfield's city council has backed Mr. Wilson all the way—even o the exotic energy ventures. Not all •Falrflelders are so •supportive. Housewlfe Alfa Hawkes, a local tax watch• dog, contends that "e city does not have the right m engage N private enterprise, , She worries Nat the clty Mght be saddled with heavy hooded debt If the projects turn sour. Beyond at, she says, "I have yet to See alone the too many retgulaHons, carj't do the Job better." And Sam Caddie, the executive manager Of the Solaro County Taxpayers Aksoc ation, ts also disturbed, especially In the, wake of I last year that for several days inun- dated low-lying parts of this Bat, delta city. "We would prefer to have the town pay more to Infrastructure matters;' he Success Sells such crIU- clsma NyorGary ma ter what you Falatl shrugs otyou always have some opposition," he says. "But people generally go along with success." Afore and more Callfornla cities think Fairfield's Ideas about dabbling In private enterprise are indeed worth considering, At the last convention of the League of Cadfor� is Cities, bureaucrats traded Ideas about ow to generale small -power project reve• ues, they shared methods of Joining with rivate partners for land development, and ao9� J r I I they swapped hints about other unasnaf means of raising municipal'revenues. Mother Innovative city Is Visalia, Calif., (population St,000), which has'diminlshed its dependence on state and federal financing In anticipation of cutbacks. In 1960, for exam. ple, one-third of Vlstila's revenues came from outside sources. Currently, 229. comes from state and federal funds, and In four years that contribution will shrink to 10%,, city officials say, even though the city's Ste million annual budget hasn't been trimmed significantly. . Hoa did Visalia do It? park concessions and recreation us6 fees now pull In $2,000 a month, and.a quarterly recreation newslet• ter is now self-supporting. thanks to paid ad• vertiaing. Some city officials earn bonuses for efficlent performance, and others on'the Public payroll will Join them soon. "We want our people. to• have the entrepreneurial spirit," says Vlsalla's city manager, Ted A. Few municipal officials, though, have shown as much entrepreneurial panache as Fai field's Mr. Wilson did four years ago when a real-estate developer sought the city's permission to build a small shopping center bere. "I sald.'Why not build a big re• 9101W shopping center?"' recalls Mr. Wtl• X& "'Let's work: out a deal . where you T11e Geate4'teey and d ��purcehhodog the land, outMing d [kmdb return kand ow edre 10% to 17% of the net cash flow after pepatses from each of the merchants In the oae•mom-squarefoot mall—"several'thar sand (dollars) a year," according to Mr. Wfiaon. But Fairfield has yet to really cash in on the deal, at least If one believes Mr. Wilson. In 1978, the city originally acgwred more than 120 acrep of land for the center at SIM a square foot and fumed 'around and sold AbaR half of It to the developer for tZ25 a squareso —a profit MU& of SK So fu That was Just the beginning. ,We m hold 66 acres of choke adJacent land, and we'll be selling that at $5 to $10 a square foot." asaetts Mr. Wilson, mundNg for the worts lie a real-estate speculator himself. He adds with a grin: "If we don't make $15 million on the IuM deal alone, we're Intro- petem.„ �093- 111CRonuaED BY t JORM MICR(6LAB 1 CEDAR RApIpS • DES I.1019ES i J I—) r Speer Financial, Inc. MUNICIPAL FINANCE CONSULTANTS SINCE 1954 SUITE 4510.55 EAST MONROE STREET • CHICAGO. ILLINOIS 60603 • (312) 346-3700 Investment Ratings: Hoody's Investors Service, Inc. ...... Aaa ;,2, 700, 000 CITY OF IO11A CITY, IOWA General Obligation Bonds Date of Sale: November 30, 1982 Average Life: 7.3148 Years Bidders Price Coupon Rates Continental Illinois Ilational Bank and Trust 100.1501 1965-1989 7 1/2N Company of Chicago - Chicago - lianager 1990-1991 8.10 Prudential-Bache Securities, Inc. -Chicago Al1ARDED 1992-1993 8.60 LaSalle National Bank - Chicago 1994 8.80 CoLuerce Bank of Kansas City, N.A.-I(ansas City Robert N. Baird & Co., Inc. - Hilwaukee The Northern Trust Company - Chicago and 100.0186 Herrill Lynch White lleld Capital Markets Group -11Y and E. F, Hutton & Co., Inc.- flew York and Goldnan, Sachs L Co. - flew York - Joint HanaUers Clayton Brown & Associates, Inc. - Chicago Dain Bosworth Incorporated - Uinneapolis Centerre Bark, N.A. - St. Louis Dougherty, Dawkins, Strand & Yost, Inc.-liinneapolis Shaw, iicDermott L Co. - Des lioines United Central Bank of Des iioines, H.A.-Des'iioines Harris Trust and Savings Bank - Chicago and 100,0062 Iowa -Des lloines National Bank - Des lloines-Jt, Hgrs, Decker & Cownie, Inc. - Des lioines Interfirst Bank Dallas, H.A. - Dallas Nabon, Hugent � Co. - New York American National Dank and Trust Company of Chicago Securities Corporation of Iowa - Cedar Rapids FIICR0r IL14CD BY I - JORM MICR6LAB 1 CEDAR RAPIDS • DES I101:IES I 1985 8.20 5 1986 8.60 % 1987-1989 7 3/4; 1990-1991 8.20 ,", 1992 8.40 5 1993-1994 8.60 ;; 1985 8.20 5 1986-1990 8.00 1991 8.20 1992 8.40 ,", 1993-1994 8 3/45 Net interest 8.186569; $1,616,847 8.28371 41,636,035 8.3383 $1,646,833 ao9,3 1 J IJ fr '. m -4 Report. of the High Technology Task Force -- Ili micRorILMED BY 13 JORM MICROLAS CEDAR RAPIDS • DES MOINES a094/ I 7 �! 14 Report of the High Technology Task Force LT•,. Honorable Robert D. Ray Governor, State of Iowa November 1, 1982 MICROFILMED BY JORM MICR4LAS .. ..� CEDAR RAPIDS DES MOINES 0 Q09 -V r ■- 1• . i Table of Contents Page Task Force Assignment and Goals 1 Executive Summary and Recommendations 5 Introduction 18 Reasons for High Technology Focus Development Efforts by Iowa and Other States, 18 23 Factors Location High Technology in the State of Iowa 25 30 Technology for Iowa Criteria 30 30 Technologies Examined 31 Selected Technologies 31 Biotechnology 36 Microelectronics Productivity Enhancement/ 41 Process Control Technology 43 Energy Alternatives 48 References 51 Appendices Definition of High Technology 52 55 Location of Hiqh Technology 111CRDEILMED BY 1 fI JORM MIC R6LA8 1 + CEDAR RAPIDS • DES MOINES I I I ao q,90 J i r L. - 1 - Task Force Assignment and Goals May 18, 1982, Governor Robert D. Ray appointed a High Technology Task Force composed of 11 Iowans. The Governor assigned the task force the mission of examining the status of high technology in Iowa to determine whether it was economically feasible for the state to accelerate economic growth in Iowa by expanding the high technology base, thereby creating new businesses, income, employment, and industries; attracting established technology industries to the stater and aiding the expansion of existing industries by encouraging the utilization and development of advanced technologies. The task force's specific recommendations were to be reported to the governor on or before November 1, 1982. The task force report was to include the following elements: 1. The potential of hiqh technology to accelerate the economic growth in Iowa through the expansion of existing businesses and industries, the attraction of industry to the state, and the development of new enterprises. 2. The identification of incentives that would be instrumental in the development and expansion of high technology enterprises in Iowa. 3. The identification of specific technologies that could be logically and feasibly developed in the state. I„ IIICRO(ILPIED D1' JORM MICR46LAB CEDAR RAPIDS • DCS MOINES rrL'i0 J J F r - 2 - 4. The development of additional recommendations such as: strateqies necessary to attract hiqh technology companies to Iowa; chanqes necessary in education, training, and research capabilities that would encourage advanced technology; facilities that would be required to encourage the development of advanced technology; mechanisms needed to transfer advanced technologies to existing Iowa industries; strategies that would facilitate the cooperation of education, government, industry, labor,,and the public in the development and utilization of advanced technology for economic growth; policy changes that would encourage increased investment in industry and business; and other recommendations that the task force deemed practical to guide the governor in examining the impact and opportunities of advanced technology in the economic development of this state. The Iowans appointed to this Task Force were: IdICROFILIdEO DY j JORM MICROLA9 CEDAR RAPIDS • DES MDI"IES ` _ J 20" J r Members of Task Force Mr. George L. Benning, Vice President Advanced Technology and Engineering Avionics Group Rockwell International 400 Collins Road, NE Cedar Rapids, IA 52498 (319) 395-2245 Dr. Joseph Borqen, President Des Moines Area Community College 2006 South Ankeny Boulevard Ankeny, Iowa 50021 (515) 964-6260 Mr. Ross B. Gustafsson- Vice President - Engineering Clinton Corn Processing Company, Incorporated 1251 Beaver Channel Parkway P.O. Box 340 Clinton, Iowa 52732 (319) 242-1121 Mr. Theodore A. Johnson, President J -Tec Associates, Incorporated 317 Seventh Avenue, SE Cedar Rapids, IA 52401 (319) 366-7511 Mrs. Mavis E. Kelley, Chief Federal Programs Section Career Education Division Department of Public Instruction Grimes Building Des Moines, Iowa 50319 (515) 281-4720 Mr. Thomas A. Mefferd, President Treasurer and Chief Engineer Positech Corporation Rush Lake -Road Laurens, Iowa 50554 (712) 845-4548 IdICRONUIED BY JORM MIC RbLAB ? CEDAR RAPIDS DCS MOINES I i _ a - 3 - MM 1 v - 4 - Mr. Robert H. Meier..General Manager John Deere Ottumwa Works P.O. Box 617 Ottumwa• Iowa 52501 (515) 683-2286 Dr. Rex Montgomery, Associate Dean of Academic Affairs and Head, Division of Associated Medical Sciences University of Iowa College of Medicine Iowa City, Iowa 52242 (319) 353-5118 Mr. Robert F. Neuwoehner General Manager St. Regis Company 2150 Kerper Boulevard Dubuque, Iowa 52001 (319) 557-1170 *Mr. David H. Swanson, Director Center for Industrial Research and Service Iowa State University Ames, Iowa 50011 (515) 294-3420 Director, Iowa Development Commission 250 Jewett Building Des Moines, Iowa 50309 (515) 281-3619 Dr. Daniel J. 2affarano, Vice President for Research and Dean, Graduate College Iowa State University 201 Beardshear Ames, Iowa 50011 (515) 294-4531 *Chairman ao9�f 141CROULMED BY CORM MIC ROLAB 1 I � CEDAR RAVI05 DES IgD1YES v - 5 - Executive Summary and Recommendations The High Technology Task Force unanimously recommends that Iowa strengthen its efforts to attract, develop, promote, and utilize advanced technologies in efforts to accelerate the rate of economic growth. Advanced technologies have the potential to support and strengthen enterprises currently operating in the State of Iowa, attract new productive enterprises to the state, provide employment for most sectors of the Iowa work force, strengthen the education systems of the state, and secure improved economic growth for communities. The State of Iowa has many of the attributes and capabilities necessary to encourage the development of advanced technology industries and significant gains have already been achieved; however, it is imperative that these attributes and capabilities be directed to secure a stronger position in the rapidly developing new technologies. The state has already achieved remarkable progress in development of productive agriculture and industries that utilize high technologies in products and processes. These developments, partially iq the internationally recognized agribusiness sectors, have been a result of the work of the creative, productive, and ingenious people of Iowa; a commitment to discoveryt and the adaption of innovation. The state's educated and skilled work force, extensive and high quality ?;C"RD(ILMED 61' JORM MIC ROLAB 1 j CEDAR RAPIDS DES MOVIES ' I i i v \■ - 6 - education and research capabilities, excellent environment, strong industrial base, and commitment to economic growth are attributes that could assure the implementation of successful programs to expand employment in other advanced technologies. The failure to take full advantage 'of the expandinq opportunities in research and development, creation of employment in advanced or high technology industries, ,or the utilization of these technologies by existing industries could have the consequences of slower economic growth for the state. While the rapid growth of advanced technologies and their related industries offer opportunities for investment and employment, there are some associated costs and risks. High technology companies often have short product life cycles; high demands for collaboration by the research and educational facilities and faculties; the need for high risk venture capital; fluidity in operations; a hiqher rate of failure; and rapidly changing demands for job training. Management and employees of high technology companies tend to have greater interest in social amenities, an orientation and training in technical fields; the tendency to cluster near centers of excellence in research and education; the need for excellent air transportation; and the requirement of a social and political environment that accepts change. Iowa industries and institutions are already involved in the development of centers of excellence in advanced �I ao9� j i_ IIICROFILI4ED BY ;ORM MICREILAB j j CEDAR RAPIDS DES i401flE5 L) r L. - 7 - technology or the utilization of these products or processes, but the time is quickly passing for Iowa to participate fully in many new technological developments. While the acceleration of state efforts in the expansion of high technology will work upon a fairly strong base, special .emphasis must be placed on the development, promotion, expansion of centers of excellence, transfer of research information, and the encouragement of advanced technologies. The High Technology Task Force, therefore, recommends that Iowa, in its pursuit of economic growth, encourage and commit itself to the development, promotion, expansion, and attraction of advanced technology industries. The.High.Technology.Task.Force,recommends: 1. That .research :and ;development .efforts .in .high technologies.be.concentrated;in.the following.priority areas: Biotechnologv.;Microelectronics.;Broductivity Enhancement/Process.Controls.:and;Energy. Alternatives_ These technologies already found with the universities and industries of the state offer considerable long term opportunity for improving existing industry capabilities; expanding employment, complementing the economic base; building upon the strong research and educational capabilities of universities and industry; and securing a growth posture for the state. Specific emphasis should be placed on the development of skills in: (a) Biotechnology - especially mission oriented research and MICNOr ILMED BY JORM MIC ROLAB j CEDAR RANDS DES M019E5 i J ao?� 0 v r L - 8 - developmental efforts in human, plant and animal genetics, pharmaceuticals, chemicals, enzymes, and other microbiology applications. The encouragement of concentrated efforts in the field of biotechnology should be expanded immediately and used as a basis for attracting industry and research. Research in biotechnology including recombinant DNA, monoclonal antibodies, plant breeding, enzymes, and the conversion of corn products already exists at the universities and in companies such as Pioneer Hi -bred International, Inc., Clinton Corn Processing Company, Inc., The Hubinger Company, and others. (b) Microelectronics - including medical instruments and prostheses, agricultural equipment, telecommunications, and other applications of electronics. The large and growing industries related to microelectronics and its applications offer immediate opportunities for attracting industry and expanding the firms already located in Iowa. Examples of these companies are Rockwell International, Sperry Univac Computer Systems, J -Tec Associates, Inc., and E. F. Johnson Company. (c) Productivity Enhancement/Process Control - technologies consisting of robotics, computer-aided design and computer-aided manufacturing, intelligent manufacturing systems, and process system development are essential to the modernization of Iowa's manufacturing plants. Multi dimensional modeling of 111CROEILMED BY JORM MICROLAB- j CEDAR RAPIDS • DES '101YES ao4if al J v r S 9 - dynamic systems and other advanced systems are currently underway in industrial operations in Iowa. The development and transfer of information related to these systems and their applications are essential to Iowa for the attraction or development of new industry, and (d) Alternative Energy - where research and development are essential to the future of Iowa. The utilization of Iowa coal, waste products, biomass, and the development of photovoltaics, all of which are in various stages of research and development at universities, should be encouraged. This long term research and development alternative has some potential for expanded employment and the reduction of the state's negative enerqy balance. 2. The mechanisms to transfec information on r aM9hA technoloay.,and',other scientific endeavors among jndustry universities Sabo a*i s ao� rnments d the.Rublic.should .b,e. developed ..expanded. and improved. These information systems would provide literature searches, access to computer data bases, assistance in the development of innovations, evaluation of ideas and processes, inter -university communication, and facilitate the understanding of technology and science. These systems would also help to facilitate the needed improvement in the dialogue and exchange of information and personnel between education and industry. The organization, or mechanism, would utilize existing 7 -- ao9y MICROFILMED DV J JORM MIC ROLAB CEDAR RAPIDS . DES MOL"IES J %. I [_F a - L -10- services found within community colleges, universities, government, trade associations, and other groups so as to encourage development and understandinq. The agricultural extension model; with inputs, -leadership, coordination, and delivery by the Center for Industrial Research and Service, University of Iowa Research Foundation, and community colleges; could be followed in the development of such systems. 3. The.manv.energies and resources.9.L1owa h directed a o ensure t.heons.Sgfm de�eloament a�t3action :expansion. i ans,utization of advanced.*echnoloaies. The strong commitment to high technology development by the governor and executive branch, educational institutions, development organizations, legislative branches, business sectors, and others in positions of leadership is essential if Iowa is to attract and expand industry. train its citizens, build up the research base, secure a stronger economy, and be recognized as a suitable location for hiqh technology operations. This commitment and refocus of effort will be necessary to broaden employment opportunities, aid existing industry in learning about new processes and technologies, establish stronger and directed research capabilities and centers of excellence• strengthen the development of human resources, and provide future investment opportunities for Iowans. Special efforts should be made now to 111CRO(ILMED B1' JORM MIC ROLAB j CEDAR RAPIDS DES 6101YE5 I DOQq 1 d V encourage resources in the areas of training, promotion, education, research, and transfer of information focused upon the technologies and employment opportunities identified by the task force. 4. The governor should jmmediately establish an Iowa Hiah Technology .Commi AjDj .to Pu sue, guide, and ,coordinate 3owa'.effg is .related .to igh ,technology. This action commission, comprised of a broad base of top leaders involved and committed to hiqh technology, would be appointed and report reqularly and directly to the governor. The commissioners' duties would be to promote the planning, coordinate, and evaluate Iowa's efforts to develop high technology capabilities and employment in the state. It would provide leadership in the establishment of research and development centers for high technology near universities; encourage the private development of properties for the development of high technology companies; coordinate and stimulate. with the Iowa Development Commission, promotional efforts to attract and expand high technology enterprises; ensure the proper development of an effective mechanism to transfer information on technology and research to Iowa's existing industry; promote legislation that would stimulate the development and growth of high technology in the state;, aid in identifying the research needs of industry, universities, government, and others; actively ao9� MICROFILMED 6Y JORM MIC RbLAB n � ! CEDAR RAPIDS DES 'dDIYES ' 7 r - 12 - encourage the fundinq of technology and research from business and government sources; and work to increase the public awareness of technology and the attractiveness of Iowa as a location for the related industries. The High Technology Task Force could act in an interim advisory capacity to this commission. 5. The.consideration of leg slative.incentives.that.will Qn casae,the location.and.expansion.of high,technolo4v companies. Legislative incentives that might be considered for study based upon their use in other states are: (a) adoption of the provisions of the Economic Recovery Act of 1981 relating to tax credits for qualifying research expenses and increased deductibility for contributions of research and experimentation property and equipment to nonprofit and educational institutions, (b) expansion of the industrial revenue bonds to permit the financinq of facilities for the exclusive purpose of research and development, (c) study of incentives to encourage purchases of equipment and services in research and development, (d) revision of the state securities laws and administrative rules to encourage venture equity financinq of high technology operations in Iowa• and (e) reduction of property taxes on research and development facilities and equipment. aolit MICROF MIED DY 1 JORM MICROLAB I CEDAR RAPIDS . DES M019ES t i i - 13 - 6. The encouragement of.human.resource development necessary .to enanra the employment of IowanG in high technology industries research and apolicationa The human resource development has two vital components - the improvement of the public and private educational delivery systems and the strengthening of the educational institutions. To accomplish these goals the following activities should be addressed: (a) expansion of advanced technical skills in the area college curriculum of technical education, (b) greater emphasis be placed on mathematics, science, computer literacy, problem solving skills, communication skills including foreign languages, entrepreneurship, and other prerequisite courses for high technology instructional programs, qrades R-16• in public and private educational institutions, (c) partnerships between business/industry and educational systems should be encouraged to strengthen the technical competence of teachers and students, (d) incentives to encourage teacher preparation and retention in mathematics and science; and hiqh technology instructional programs to provide an adequate number of instructional staff in the educational system. (e) expansion of continuing education opportunities to serve adults seekinq to upgrade, or retrain. career opportunities in high technology fields, (f) identify and publicize the job opportunities that are available in high technology occupations to enable the r� I 1 f IIICROf IL14ED DY j ORM MIC REILA CEDAR RAPIDS •DES G101YE5 7 I ILL - 14 - current and future work force to be knowledgeable of these opportunities, (g) creation of new instructional programs at the high school, area college, and university levels to prepare students for new and emerginq occupations, (h) provision for incentives for business/industry and educational institutions to Share high technology equipment and facilities, and (i) encouraqement for greater efficiency and economy in the educational delivery system by providing incentives for the use of telecommunications and other advanced educational tecnnology. 7. The_ creation Of mechanisms t9 enc tr QQ_the .deVE•al iDm n and expansion of Drivate venture -Dit ] �n high technology co_moafliea,includina eatabli=hina m china grant.anel loan Droarama to assist rn p r.�h _D�;jects wi h commQrciat Dromic The establishment of a fund which could be used to help new, existing, and small companies r in hiqh technology manufacturing and research would be one element in efforts to encourage investment in the products and processes of scientific research. The availability of venture capital is considered essential to any efforts to encourage the expansion of employment in high technology enterprises. r aha IIICROEILMED BY JORM MIC ROLAB L 1 j CEDAR RAPIDS • DCS M019E5 ' 7 � 1 r L — 15 — ,end deve7oom nt centers near research universities to f ili to research product developmenr innovation and the aonlication.of research results to practical.usaae.. The history of high technology development in the United States emphasizes the need for close cooperation between research universities and industry, plus the development of private research near university centers of excellence. Several, existing facilities and land parcels near the research universities should be examined for their applicability as future research and development centers. Locations which may have potential for such development are the University of Iowa's Oakdale Campus, Iowa State University's former reactor site, and the Iowa State University research farm located near Ankeny. These locations with proper planning and development by nonprofit entities have the potential for research, innovation,.and development centers. ,: •.1: •, ,. •, •p• •,MUM :1 The expansion of efforts to identify Iowa as a location for further hiqh coordinated technology development requires multifaceted approaches that indicate a positive and stimulating environment for scientists, a favorable location for expanding high technology companies, the high quality research existing in Iowa's research MICROFILMED BY JORM MICR40LAO eeonR unriDs •Des !aoeus 010 9'f Mi J - 16 - universities and industries, and the productive business atmosphere. The Iowa Development Commission as the primary promotional area of the state should provide leadership and direction to these efforts to attract and encourage domestic and international high technology companies to Iowa. Iowa, as a diverse and productive state with a hiqh quality of life, should emphasize its special attributes, including well managed and responsible government; productive and educated workers; high literacy rate; career oriented community college system; research universities; excellent transportation system; central location; scientific advancements; and diversity of industry. The communities, industries, educational institutions, and development orqanizations in Iowa should be encouraged to participate in these efforts to promote and develop the state. i i MM I4 I CROP I LMEO 81' JORM MICR46LA13 j ,\ I CEDAR RAPIDS DES 1401>!ES 7 i I LL L! r •I _ •! / I I` — 17 — r I George L. Benning Thomas A. Mefferd I Joseph Borqen Rex Montgomery Ross H. Gustafsson Robert F. Neuwoehner J Theodore A. Johnson David H. Swanson Mavis E. Kelley Daniel J. Zaffarano Robert H. Meier ao9y MICRo(ILPIED BY J i JORM MICR4iLAB- -� ti. CEDAR RAPIDS - DES M0I. i I i r Introduction Reasons for.Hiab.Technoloav Focus The increasing importance of economic growth• and its rAlated benefits in jobs and income, has resulted in new assessments of the ways and means by which economic growth is stimulated. Studies of how employment sectors have grown or declined, and what significant attributes accompany a particular growth sector have become more frequent. A great deal of attention has been directed to the growth of service industries. But recently the declining rate of productivity, along with increased international competition and severe economic recessions, has concentrated economic research upon the ways to encourage growth in the manufacturing sectors. Many of these studies have concluded that most employment growth in the manufacturing sectors has been within advanced or hiqh technology companies. The studies also indicate that future manufacturing employment opportunities will be concentrated in high technology companies. Data Resources, Inc. has reported that employment in hiqh technology industries grew about nine times faster during the past 25 years than low technology companies; output by high technology industries grew three times faster; productivity in these industries increased twice as fast; and exports by hiqh technology companies grew rapidly while exports declined in products related to low technology. MICROFILMED RY JORM MICR6LA6 j CEDAR RAPIDS • DES MOCIE5 2094 1 IVA r r L I - 19 - The findings by Data Resources, Inc. have been substantiated in other economic studies. One recent study by the Congress reported that hiqh technology industries accounted for 75 percent of the net increase in manufacturing jobs in the 1955-79 period. Other studies and observations have revealed that virtually all industries are becoming technologically more sophisticated and advanced. Considerable attention has also been focused on the shortened life cycle of products, increased need for the advancement of research and incorporation of technology, need for greater investment in manufacturing equipment, and the need to establish linkages between education, research and industry in order to encourage the development of new technologies. Iowa, strong in research, education, and industry, has not generally been considered to be a state where hiqh technology companies are concentrated. Many industries of the state utilize and develop high technology, approximately 35.,000 Iowans are employed in hiqh technology, but the fact remains that mature industries dominate the manufacturing and processing sectors in Iowa. Iowa, like most states, has not been a leader'in the development and attraction of high technology industries, but the Midwest is considered attractive for high technology. companies. A Congressional study states: "the Midwest may have the best bundle of locational attributes for hiqh technology companies." 141CROFILMED 01' JORM MICROLAB CEDAR RAPIDS • DES Id019ES I i 0109* J �J t r -20- Development Efforts.bv.Iowa and Other sates Efforts in Iowa to develop hiqh technology capabilities have been largely within university departments, individual industries, and federal laboratories. Individual researchers, respondinq largely to federal funding and their own areas of interest, have developed expertise in many. fields. Federal funding of research in agriculture, the health sciences, human and veterinary medicines, physics, chemistry, and other sciences has provided much of the impetus for these technological advances. Federal laboratories, such as the Energy and Mineral Resource Research Institute of the Ames Laboratory and the Animal Disease Laboratory, have encouraged special skills to be developed in Iowa. State efforts to spur technology and research have been largely restricted to providinq general funding for education, although some special studies have i been funded by the state. i Several states, particularly California, North Carolina, and Massachusetts, have managed to develop stronger ties to industry at their educational and research institutes. The research triangle of North Carolina, Route 128 in Boston, and the Stanford Research Institute are examples of concentrated and successful efforts to develop hiqh technology, research, employment, and industry/university liaisons. During the past few years, well over half of the states have begun special efforts to develop advanced technology l� � IdICROEILIdCD OY JORM MICR46LA13 1 CEDAR RAPIDS DES I40I:IES 7 Aa9y - 21 - industries. The result is intense competition in the attracting of hiqh technology companies and the development of special advantages to attract research. Millions of dollars have been spent for the advancement of high technology, development of research parks, establishment of new industry/university affiliations, and the attraction of scientists, and engineers. Fortunately science and technoloqy have so many facets and the need for research is so great that many of the new initiatives will be successful. The August 27, 1982 issue of science Magazine states.that *every region can benefit from trying, from aggressively adopting those policies, making those public and public/private investments, which can lead to the next Silicon Valley or Route 128 - the high technology fix will work, because it is a strategy of investment in brains and wits as well as a public/private partnership in support of an innovative economy and wise public policies." 111CROrILMED 6Y 1 I JORM MICROLAEI � CEDAR RAPIDS - DES I•f01YLS j j _ 1 ao9y J� P� -22- ' Hiah Techno�oa,4ioba i a� —•�-•�.�9/acted states* j Arizona California 57,800 Connecticut 574,900 Colorado 94.400 Florida 53,100 Georgia 98,300 Illinois 28,300 Maryland 242,500 Massachusetts 37,300 Michigan 222,000 Minnesota 92.300 New Hampshire 104,800 New Jersey 36,500 New York 182,200 North Carolina 375,000 Ohio 83,700 Pennsylvania 161,900 Texas 209,900 Virqinia 143,600 Iowa** 40,100 35,685 Source: Location of High Technology Firms and Regional Economic Development. Subcommittee on Monetary and Fiscal Policy. Congress of the United States June 1, 1982 **Job Service of Iowa Economic development promotional efforts in Iowa have not been concentrated on the location or development of high technology companies. Rather the efforts of the state and local development groups have successfully concentrated on certain geographic, productivity, and tax advantages in attracting established industries, particularly industries concentrated in adjoining states or the Great Lakes Region. W I i - 111CROFILMED BY CORM MIC REAL AB ! I� LCEDAR RAPIDS DES MOIYES i - 23 - Location,Factors A study of the location preferences and planned additions of hiqh technology companies shows that the Midwest, and Iowa, can succeed in attracting and developing high technology industries. Currently, only 7 percent of the existing high technology plants are located in the Midwest; however. the reqion is expected to get 10 percent of planned additions and over 9 percent of the new plants - a 33 percent change, which is more than any other region.* Iowa and the Midwest have advantages in the factors that are considered significant to high technology companies. i *Source: Location of High Technology Firms and Regional Economic Development Subcommittee on Monetary and Fiscal Policies. Congress of United States June 1, 1982 i i � " td ILROf ILIdED 05 � JORM MICR4/LA9 rj J CEDAR RAPIDS • DES MOVIES 21)91/ I J -24- Factors Influencing Regional Locations of High Technology Companies* Bank Attribute B of�,�yni i"an e 1 Labor Skills/Availability 69.3 2 Labor Costs 89.3 3 Tax Climate 72.2 67.2 4 Academic Institutions 58.7 5 Cost of Living 58.5 6 Transportation 58.4 7 Access to Markets 58.4 8 Regulatory Practices 49.1 9 Energy Costs 41.4 10 Cultural Amenities 36.8 11 Climate 35.8 12 Raw Materials 27.6 *Source: Location of High Technology Firms and Regional Economic Development. Subcommittee on Monetary and Fiscal Policies. Congress of United States June 1, 1982 The rating by high technology companies for Midwest locations generally is favorable - outstanding in no category, but negative only in climate and energy costs. Executives of high technology companies have favorable impressions of the Midwest. The primary location factors of f proximity to major scientific and technological universities, vocational/technical schools, air transportation, and a supportive environment for scientists are also favorable to Iowa. i I I I I ki j 111CR0EILMED BY 1 CORM MIC R(jLA B \ 1 , CEDAR Rfdq OS DES MOI4E5 ! I _ J I \1 -25- High Technology in the State of Iowa The attraction of high technology to the State of Iowa will rest upon the foundation of .research found in its education institutions, diversified and productive industrial operations, internationally acclaimed agricultural sector, and attributes related to the quality of its population, and business environment. Iowa's high technology efforts have already achieved significant and sustained accomplishments. Approximately 35,000 people are employed in over 125 high technology companies identified. The electronic firms include Rockwell International Corporation - Collins, E. F. Johnson Company, Norand Corporation, Rohner Machine Works, DECO Products Company, Winegard Company, TRW/IRC Thin Film Registor Operations, Wabash Transformer Corporation, McGregor Electronic Industries, J -Tec Associates, Inc., Sperry Univac Computer Systems, Micro Technology, Inc., and Universal Circuits, Inc. These companies, plus many other electronic firms. make products related to avionics, data systems, communications equipment, resistors, and respiratory support systems. Iowa biotechnology companies that produce seeds, services, vaccines, pharmaceuticals, include Salsbury Laboratories, Fort Dodge Laboratories, Inc., Grain Processing Corporation, Diamond Laboratories, Pioneer Hi -bred International, Inc., and many others. r 611CRONUIED BY JORM MIC R(3LAS 13 1,* I CEDAR RAPIDS DES id01AC5 I_ V LL S - 26 - 1 The university capabilities upon which the expanded hiqh technology efforts would rest are amazing in their diversity and complexity. Examples of the institutes, laboratories, and programs at the University of Iowa are the internationally known Writers Workshop, Educational Testing { and Measurement. Space Research Proqram of James Van Allen, Lasansky Print Making, Institute of Hydraulics, Wendell Johnson Speech and Hearing Center, University of Iowa Hospitals and Clinics, College of Medicine. The Statistical Laboratory, Agricultural and Home Economics Experiment Station, Ames Laboratory, Energy and Mineral Resources Research Institute, Engineering Research Institute, Soil Science Institute, Veterinary Medical Research Institute, and Water Resources Research Institute are examples of specialized research at Iowa State University of Science and Technology. The research in high technology related to the priority areas identified by the task force which is currently underway includes the following: B3.4tS9hi1914gy (1) Biology of the gene and its replication, such as DNA replication in yeasts; genetics related to galactose metabolism in yeast, replication of genes in E. coli related to one -carbon metabolism; and the genetics of trypanosomes, the causative agents of sleeping sickness, (2) recombinant DNA research in which bacteria have been modified to produce bovine pituitary hormones; the genes of ao 91/ 141CROFILD1ED BY JORM MIC Rfi/LAB CEDAR RAPIDS DES Id01 N[S i J r I I 27 - cytomegalovirus and essential amino acid production introduced into E. coli; and the isolation of genes related to the adhesion of pathogenic bacteria to human tissues, (3) monoclonal antibodies directed to tumor cells for alternate cancer treatment modality, (4) microbiology studies with potential importance to agriculture and health, including the identification of proteins that have insecticidal properties produced by bacterial spores; the required factors for methane production, the interrelationship of pathogenic organisms and iron bindinq proteins, and (5) extensive genetic research related to plants and animals. MicroelectronigA Research including: (1) imaging techniques using ultrasound, radioactive isotopes, x-radiation, and nuclear magnetic resonance which employ computer enhancement programs to identify pathologic tissue in the body by i non-invasive techniques, (2) prostheses for joint replacements, heart valves, cochlear implants, implantable i devices to control heart rate or impulse drugs and hormones at predetermined rates, (3) laser research for surgical procedures, cancer treatment and improved lighting, (4) robotics for the space program, (5) vest pocket electromyographic instruments, or digital electro-neurometer for determination of problems in nerve conduction, (G) instruments for measuring visual acuity using laser interference fringes projected onto the retina, (7) micro chip oscillators using piezoelectric films of zinc oxide or aogy i. I-IICRDEILI4ED By JORM MIC RbLAB + CEDAR RAPIDS DES MOINES 7 /r i J r.^ V 28 - aluminum nitride one micron thick which provide stable frequencies in the gigahertz range, (8) amorphous metallic silicon films using a new sputtering technique of interest to makers of photovoltaic cells, (9) high purity base materials for inteqrated circuits such as gallium arsenide and silicon carbide are being investigated, and (10) a new computer-based system with visual feedback for training deaf people to use their voices properly has been developed and is now being used experimentally at the School for the Deaf. EL2d!]�t3Y3�X_E1bA =n.t Research in: (1) computer-assisted design directed to the simulation of vehicular performance i and design using mathematical modeling with 25 degrees of freedom, (2) robotics for the space program, and (3) computer aided design and computer aided manufacturing. �rggy_A],ternayjv�g (1) Modification of the genetics of yeast to improve the fermentation of biomass to ethanol, (2) conversion of organic material to methane by fermentation, (3) determining the efficiency of cesium thermionic converters. (4) examination of lithium lasers for their role in plasma fusion and tritium breeding, (5) development of solar collectors, (6) studies of stress corrosion in containment vessels, (7) ultrasonic testing, (8) the beneficiation of coal, and (9) improvements in techniques in coal mining and land restoration. The community colleges have also taken firm steps to prepare students for careers in high technology. Among the 07091/ MICROFILMED BY JOgM MIC ROLAB i I CEDAR RAPIDS . DES MOINES _ l fr - 29 - training programs offered are electronic communications, electronic computer maintenance, industrial electronics, electronic technology, computer programminq and operations, telecommunications, solar enerqy, enerqy management, laboratory technology, mechanical technology, and electro -mechanical technology. ' I MICROFILMED BY VOFtM MIC REIL AO- CEDAR RAPIDS DES MOINES I ! I '2094 r I - 30 - Technology for Iowa Ciitg_r3 U The High Technology Task Force determined that emerginq new technologies, the potential for job creation, the expertise of the research base in Iowa, and the economic structure of the state would be the factors to consider in selecting appropriate high technologies that should be pursued in Iowa. Iowa has strong research universities, an emerginq new technology base, hiqhly productive industries, a strong agriculture sector, and an educated population upon which to develop advanced technology operations. T&ghng"g assn -e -d The emerging technologies initially examined by the Task Force were: (a) biotechnology as applied to health and agricultural products - animal and plant, (b) micro- electronics and artificial intelligence, (c) productivity enhancement including robotics, (d) materials and metallurgy, (e) energy- and (f) medical equipment and electronics. Medical equipment was later consolidated into biotechnology and microelectronics, while materials and metallurgy were eliminated because of lower potential for job creation in Iowa. The remaining technologies of biotechnology, microelectronics, alternate energy- and process controls were studied in greater detail due to their apparent excellent relationships to the economy and capabilities of Iowa. A00 111CRDEILI41D BY 1 JORM MIC ROLAB I I� CEDAR RAPIDS • DESAD1AE5 I i V - 31 - Biotechnolog The dependence of the economy of Iowa upon agriculture, food processing, and the broad range of businesses associated with agriculture, when combined with the relative technical simplicity of the processes associated with today's biotechnology recommends consideration of this high technology for expansion in the State. Although the techniques are simple, there is a highly sophisticated research and development activity required to produce or select the proper living systems for examination. �€f19iS12J Biotechnology is broadly defined as the technical application of living systems to the economic production of useful products. This may include: the manipulation of the genetic composition of a cell by recombinant DNA techniques in order to modify its behavior in I a desirable way (e.g. production of insulin and other pharmaceutials by bacteria); the fusing of two cells to combine the properties of both cells (e.g. the hybridoma technique for the production of monoclonal antibodies, which have a high potential in the treatment and diagnosis of disease as well as the purification of drugs); the fermentation processes from biomass to yield energy sources like ethanol or methane; the modification of growth in plants by alteration of the bacteria associated with the roots; the aa94/ i_ I41CROf ILMED BY I � JORM MIG RI6LA B' 1 1� L�.. CEDAR RAPIDS DES I4014ES 7 �i v 1 - 32 - production of enzymes for the catalytic conversion of natural Products (e.g. corn starch into high fructose syrups). RaUDD-41S Biotechnology includes some of the oldest industries known; fermentation processes and plant and animal breeding having been conducted throughout history. The use of natural selection in either the isolation of better microorganisms or improvement in pharmaceuticals and farm products has been accelerated in some cases by the introduction of genetic engineering using recombinant DNA techniques. By these procedures, it should be possible to modify the information coded into the nucleic acid of cells such that they behave differently and in a manner that makes them more useful to the doctor, farmer, pharmacist, agri-industries, and the world. The common bacterium, E. Q413r has been manipulated by these techniques so that human insulin or bovine growth hormone can be produced by the cell and these products isolated for appropriate use in the treatment of diabetes mellitus or for the increased growth of animals. It is probably true to say that the production of any natural product can be accomplished by the appropriate modification of the bacterial genes because the means for the introduction Of the new genetic information into bacteria are known. The modification of cells of plants and animals, in which their genetic material is packaged into a nucleus, is much more difficult and is still a matter for extensive research. For ao-ql MICROS WEED BY JORM MIC ROLAB 1 l CEDAR RAPIDS • DES HOMES 7 � J v r I I 33 - example, the development using DNA recombinant techniques of corn with the ability to fix atmospheric nitrogen is extremely complicated and will require significant scientific breakthroughs before it is successful. In spite of, or perhaps because of these difficulties, these and similar projects are being investigated at universities and industries and thus represent one extreme example of the practical application of biotechnology. At the other end of the spectrum are the projects at Iowa universities that could with relative ease be moved into production, such as: 1. genes for the biosynthesis of pituitary hormones (growth hormone, prolactin, thyroid -stimulating hormone, follicle-stimulating hormone, luteinizing hormone) of the bovine have been inserted into E. coli to produce these hormones. 2. cytomegalovirus has been built into plasmids in E. coli. This may be important in the generation of a vaccine against cytomegalovirus, one of the herpes viruses infecting humans particularly important in transplant patients. 3. genes from ajZ,9b," for the biosynthesis of the essential amino acid tryptophan have been inserted into E. coli. Considering the high potential for the successful application of a variety of biotechnologies and the importance of the products to the state, it is reasonable to Q074 141CRUf ILMED BY JORM MICROLAB 1 � ` � I CEDAR RAPIDS UES MOINES iI i 1 - 34 - identify this type of high technology for industrial development. Market A review of the technical and business literature clearly shows a meteoric rise in the applications• of biotechnology, particularly as it relates to the preparation of drugs by recombinant -DNA technologies and monoclonal antibody production. As noted above, the potential for these techniques and the vital role that they could play in the economic production of scarce products is enormous. The areas of horticulture, animal science, human science, human and veterinary medicine, and energy from biomass are a few that are particularly appropriate to Iowa. The raw materials are produced in the State, the expert manpower is being trained by the universities, and support personnel from the many food industries would add to the attractiveness of the industry. It is important to appreciate the role of basic research in the fields of biotechnology. Only by the persistent application of existing information and the search for new techniques can the potential of new genetic engineering be realized. Such research requires .long-term support. New industries opening in Iowa or established firms moving into r biotechnology will find accessible expertise in the faculties of the universities of Iowa who could undertake contract research, consult on problems, or offer courses to support the appropriate needs for the new training of manpower. with ao9y IdICROMMID By J JORM MICROLAB 1 1 CEDAR RAPIDS • DES MOMES I d r - 35 - 22 million acres of Iowa land under row crop agricultural ,.;rvelopment, all sectors of the state's population and economv would benefit from a strong university program working in conjunction with a new high technology industry, wnien may lead to significant improvements in the fields of plant breeding, soil nitrogen economy, vaccine development, Srowth promoters, infectious disease resistance, and fermentation products. gQsU=nddgliDju It is recommended that Iowa develop a detailed plan to attract biotechnology industries to the State and assess present research activity in biotecnnology in the universities and in industry in the State. It is recommended that Iowa encourage and support the efforts of the universities' present research capabilities and build inter -disciplinary research teams for excellence in niotecnnology. It should also support the training at all levels of students interested in biotechnology. It is further recommended that an organization be established that would be coordinated with, but may be separate from, the universities of Iowa such that the essential basic research could be sustained and directed to the development of economically justifiable biosystems. Any such organization may investigate, as part of its charge the feasibility of research and development centers near the universities and educational institutions the means whereoy to capitalize on their various talents and to aogy I-0IDHDF 11,14 ED Dr JORM MIC ROLAB 1 � rED(.A RAPIDS DES MOINES i i I r I I 36 - strengthen the technology transfer to industry of the research results. Several specific existing industries, such as those with fermentation technology, should be examined for these applications. Micro1sss2n3cs Almost all major industries, domestic and international, have benefitted from the rapid development and application of microelectronics technology. Semiconductors have been one key to the rapid rate of change in electronics over the last thirty years. Starting with the transistors of the 1950's, the technology has expanded through micro -miniaturization. Today "chips" containing thousands of these devices have been introduced into products such as wristwatches, calculators, computerized automobiles, pocket size language translators, heart pacers, and word processors. This expansion is expected to continue at a revolutionary pace in the future decades. Microelectronic assembly is a light, clean industry with an outstanding reputation as an employer of people with a wide variety of skills that promises to improve, not only the efficiency of such diverse tasks as planting seeds and producing energy, but to develop many new products for both industry and consumers. Opportunities exist in Iowa for introduction of new microelectronics business and for expansion of some existing firms already engaged in microelectronics and related high i� 141CROFILI-IED BY I JORM MICR6LA6 1 CEDAR RAPIDS DES Id01AES I � i ao9y a - r - 37 - technology fields. No major natural road blocks unique to Iowa appear to exist that would prohibit these growth opportunities. There are instead positive factors which encourage pursuit of entrepreneurial growth opportunities within the state. The quality of the Iowa work force, the excellence of our university resources, and the favorable position of some of our related industries, such as agriculture and medicine that will utilize microelectronics in their products and services, provide a favorable environment for pursuing microelectronics in our state. Many, but not all, of these opportunities are of an entrepreneurial nature requiring venture capital and a favorable business climate. Microelectronics is an extremely broad field impacting the activities of almost all major industry. To identify potential business opportunities, it is appropriate to investigate major areas of microelectronics activities, namely Process Technology, Device Technology and Applications. Process Technology relates to those activities involved in fabrication of microelectronic devices. It usually involves front end research in materials and processes, is relatively highly capital intensive, involves high technical skills, but has little labor content. Development of unique new materials will expand the influence of microelectronics with many new areas. 'W?J/ ) I11DROf LMED BY J JORM MICR46LA13 ) i I CEDAR RAPIDS D[S !4014ES I I J i 38 - Device Technology relates to the design, fabrication, assembly and testing of specific semiconductor devices involving medium to very large scale integration of electronic digital and analog circuits on a single chip. These devices can have general purpose applications, such as microcomputers or special purpose applications, e.g. video games. Again, this activity is highly capital -intensive and requires high technical skills in the design phase. Where automation has not been implemented, assembly and test labor can be of moderate skill levels. Applications of microelectronics are the most explosive and exciting function in the semiconductor or micro- electronics field, and generally are only limited by the imaginations of creative entrepreneurs in nearly every major business. Typical applications of interest include, but are not limited, to the following: - Personal Computers - Medical Electronics - High Technology Communications System i - Data Terminals - Automotive Electronics - Farm Implements Electronics - Business Systems - Home Processing Systems A related major technical area associated with microelectronics applications is software, which also 1dICROFILMED BY DORM MICR6LAB CEDAR RAPIDS • DES MOINES 7 % J LWJ - 39 - requires skilled personnel and significant research and development resources in the development of high level languages and support systems. goten11al of .Mi."gelectronics .to Iowa G owth The initial assessment of growth opportunities of microelectronics in Iowa suggests thq-area.of..gppllcations has t greatest.potentiAl, There are no major natural hurdles in pursuit of all three areas; Process, Device and Application under certain circumstances. However, significant capacity exists, or is being developed, on a worldwide basis that could make it difficult to pursue successfully devices or process business elements independent of applications. For microelectronics applications, it would appear appropriate as an initial step to examine our existing related industries and technological resources including our universities for expansion of the business base in Iowa. The following are several candidate businesses: I i Q09V i_ MIDRDfILMMED 5P JORM MIC RE/LAB L � ! � ceona RAPIDS •Des Moines 7 � I i r - 40 - - Agriculture - Communications, Data Processing, Automation, Farm Implement Electronics - Medicine - Diagnostic Instrumentation, Medical Prosthesis, Implantable Pumps to deliver drugs or hormones - Office Systems - Insurance Companies, etc. - Robotics - Smart Automation Systems - High Technology Communication Systems - Software Development The economic justification for pursuit of microelectronics in Iowa relates to the rapid growth of industries related to the businesses listed above. Many recent microelectronics related growth businesses, such as personal computers and word processors, have become billion dollar businesses. JJU,91nesskLQeJ recently reported that the annual growth potential for the telecommunications exceeds $75 billion, doubling over the next 5 years. Some structure to encourage entrepreneurial pursuits, such as research parks, adequate venture capital, and pilot research centers, could certainly improve the probability of success in Iowa for attracting or maintaining these ventures. Several successful high tech states encourage entrepreneurial courses in their educational system. Recommen�yn� In view of the many positive factors related to Iowa resources, including our educated I-IICROFIL14ED BI' ' JORM MIC RfI1LAB CEDAR RAPIDSDES M101NES ao9,f 7 v 1 J� r r - 41 - work force, our related industries, and our universities, it is strongly recommended that the field of microelectronics, especially in the area of applications, be seriously pursued by the state as an opportunity for economic growth. Transferring information between our industries and our educational resources, especially in related research, can provide a favorable climate for obtaining this growth. A strong engineering base and technical training are vital to attracting and maintaining microelectronic firms. Productivity Enhancement/klgg M_-Qgn "ct g-,Technoloov Process control technology can be defined as the development and implementation of the newest devices, equipment, systems, processes, and/or concepts to increase production, and/or improve the work environment. This technology usually uses or relies heavily on microelectronic devices and controllers. Presently, this technology includes: 1. Robotics, 2. Computer Aided Design/Computer Aided Manufacturing (CAD/CAM), 3. Computer or microprocessor control of manufacturing c other producing systems, 'and MICRONUIED BY �• F JORM MIC RQLAB � I CEDAR RAPIDS DCS MOINES V' 1 - 42 - 4. Dedicated Cell or Group Technology which is the implementation of an integrated equipment system dedicated always to convert a raw part into the same finished part. United States produced products have steadily become less competitive in the world marketplace partly because of our small productivity gains. Other countries, particularly Japan, can sell comparable or better products at very competitive prices. Because Process Control Technology increases productivity, its application is essential for the United States' and Iowa's economy Although some of this technology is being developed by various industrial and educational research units in Iowa, the Task Force does not think research in Process Control Technology should be Iowa's top priority. Rather, the modernization of Iowa manufacturing plants will depend upon the transfer mechanism developed to inform companies across i r' Iowa of the latest innovations. This communication link between research centers in Iowa and around the U.S. is imperative if we hope that our industries can remain competitive in the world economy. Iowa should promote strongly the application of Process Control Technology. gggomMI ddjt}ons Application of new technology is important to the fdture competitiveness of existing manufacturers and to serve as a magnet for recruiting new manufacturers to Iowa. Two key resources - technically 111CROFILMLO 61' JORM MICR6LAB ' 1 CEDAR RAPIDS • DES MOINES 7 I a0vi v - 43 - trained workers and incentives for investment in new equipment are considered important. Technical training in higher forms of technology such as Computer Aided Design/Computer Aided Manufacturing, robotics, and micro -processors needs to be improved in Iowa's Community Colleges and Vocational Programs. Policy makers also need to reevaluate tax incentives to encourage investment by private enterprise in more productive machinery and equipment. The application of more automated and productive equipment and systems with workers trained to the state of the art in Process Control can keep Iowa's manufacturers competitive in both domestic and international markets. Lngr9Y_111 tQSI13� 1 ve s The United States is and will continue to be dependent upon fossil fuels for a major portion of its energy until the end of the century. About 92 percent is derived from fossil fuels and the remaining 8 percent of our energy comes from other sources including nuclear, hydroelectric, and a very small portion from geothermal processes. Coal is the biggest source of energy for the generation of electricity and its use has increased since 1970. It also plays an important role in supplying energy to industry. The main use for natural gas is in industry, residential, and commercial sectors. Most of the energy required for transportation is supplied by oil. This represents 53 a67V MICR.ONUMED BY J i JORM MICROLAB 1 � CEDAR RAPIDS DES MOINES � I ! 1 r I I a - 44 - percent of the oil consumed in the United States. Since I there is no widely available substitute for oil as a source of portable energy for transportation, it becomes the major reason for the current energy dilemma. The United States must decrease its dependence on imported oil or petroleum. Current interest in alcohol production by the public shows the concern for greater commitment to the production of alternate portable fuels for domestic'sources. Petroleum is an ideal energy source, and at the present time no alternative fuels can compete economically with fuels produced from petroleum. Nevertheless, economic relationships are changing rapidly; therefore, prudence demands that action begin now to develop alternate nonpetroleum fuels inasmuch as 10 to 15 years will be required to establish meaningful production of portable fuels. Potentyal.Market The energy picture for agriculture in the United States and the State of Iowa is complex. Major energy users include: on -highway and on-farm vehicles, manufacture of chemicals, crop drying and irrigation, and the manufacture of farm equipment. Since Iowa is a major corn producing state, the use of ethanol with gasoline (gasohol) has been widely publicized. Gasohol, a combination of 10 percent ethanol and 90 percent gasoline, marketed about 189.5 million gallons (approximately i aoq y i_. MICROFILMED By I i' .�• JCRM MIC ROLAE L � I CEDAR RAPIDS • DES 1401HES 7 i r � v -45- 14 percent of market)* in 1981- Current use is approximately 40 million gallons (38 percent of the market)* per month. For this source of energy to become more important, alternative feed stocks other than corn grain must be available for the ethanol distillation. Iowa has a large resource of coal. However, since most of the coal contains sulfur, techniques to clean the coal must be advanced to meet current environmental regulations. Over 7.2 billion tons* of this type of coal are estimated to es in the state. be available as proved or inferred reservamount of i Another potential source of energy is the huge lture and industry in the state. biomass generated by agricu Crop residues, wood waste, and municipal waste are subject to ction of methanol or other higher gasification and the produ alcohols. This would help agriculture become partially energy self-sufficient. About 38 percent of the corn and soybean crops produced in the state are exported to other countries. The United States and Iowa agriculture must maintain its sources of energy to be able to meet the needs for food and other farm products for the rapidly growing world population. .J *Research Department - Iowa Development Commission i� 1.11 CROP I LMED D1• CORM MIC R(SLAB ' CEDAR RAPIDS DES 140L'JES , I aogf d M_ a - 46 - The next two decades are considered to be a transition period or bridge to new sources of energy such as hydrocarbon liquids from shale, hydrocarbon liquids and gases from coal, energy from biomass, solar energy, and potentially nuclear fusion. With regard to portable fuels for mobile ground vehicles, alcohol from grain, and potentially vegetable oils are the only alternate sources currently available -=and those in only minor amounts. Liquid and gaseous hydrocarbons from coal already being produced experimentally are expected to become available in 1990. The growth of these sources after 1990 is highly uncertain due to such factors as capital requirements, water availability, environmental regulations, and provision for transportation. 2_U_QD=O d_411ons Continue the research and development program on the use of Iowa coal. The removal of the sulfur to meet environmental requirements and gasification to methanol are two areas that need additional study. The conversion of biomass, such as crop residues, wood waste, or municipal waste, to methanol or other portable fuels by the gasification process will utilize the resources in the state with further research and development. The feasibility of growing trees for the conversion of cellulose to methanol or other portable fuels by gasification is another direction that may be investigated. Generally. an MICROMMED BY CORM MIC R(�L AeI 1 � CEDAR RAPIDS • DES 1701 YES i i ao94 V k ,_A 47 - economic means of converting biomass materials into higher alcohols must be found. Encourage the continued investigation of solar energy with emphasis on photovoltaic devices. It is suggested that fuel bills could be reduced substantially in the next 10 years with proper application of solar energy. These alternate sources of energy must be developed now so that they will be ready when required --in the 1990'x. In this way our college graduates will be able to stay within the state and their knowledge will be used to support current business and industry as well as creating new ventures in the future. This can only result in new jobs for the citizens of Iowa. ao9v �. MICROFILMED BY V JORM MICR¢LA13 -J t CEDAR RAPIDS •DES F1014ES 7 � I C T r � References 1. "Shackles on Growth in the Eighties," F-91-UAQ, October 4, 1982. 2. "Location of High Technology Firms and Regional Economic Development," Joint Economic Committee of the U.S. Congress, June, 1982. 3. gysinessman.in,jgtatehgQ, Luther Hodges, The Research Triangle, Chapter 9. 4.�-��4+�4Lt39p§, Harold Orbans. 5. Scientific .InstitutiQD� ��FuturQ, Phillip C. Ritterbush, editor. 6. Research CensQSjLirectRobert C. Thomas & James A. Ruffner, published by Gale Research Co., Detroit. 7. "The Mechanization of Work," Scie_D�1f�1S_�@SL3S3�, Spring, 1982. 8. "Marketing to the High Growth, High Tech Segment of the U.S. Economy," Scientjiic_jican, Spring, 1982. 9• August 27, 1982. 10. "Alternative End Production... Its Impact on Portable Fuel Supply," March, 1980, Deere & Co. 11. "Geo -Political Index," Site .Selecti,gg_jjgDjdb_gqj, September, 1981, Conway Publications. 12. "Process for Developing a Research Park," National Association of Management and Technical Assistance Centers, September 14-16, 1982, presented by Herman & Holman, Inc. 13. The Economi�r�Rp�4vecv Act •s��lg$1, Peat, Marwick, Mitchell & Co., August 5, 1981. 14. "Demands that a High Technology Economy Places upon our Educational Enterprise," Governor Robert D. Ray, remarks to a Special Work Session of the National Governors Conference, August 8, 1982. 15. Discussion with Jim McKay, R. G. Dickinson & Co., Des Moines, and David Hinton, Piper, Jaffray & Hopwood, Des Moines, July 21, 1982. ao91f 1 i. MILROFIL14LD GI' JORM MIC R6L AB ' r ceonR Rnrlos • nes 14orles V r k - 49- 1G. "State Activities to Encourage Technological Innovation," August 1981, a report prepared for the National Governors Association Task Force on Technological Innovation. 17. Information on state activities to promote high tech industry development came from state economic development executives of: Alabama Kansas New York North Carolina Alaska Maine Maryland Oklahoma ArizonaArkansas Michigan Pennsylvania California Minnesota South Carolina Connecticut Missouri Tennessee Florida Montana Utah Georgia Nebraska Vermont Illinois New Jersey Virginia Indiana New Mexico Washington Wyoming The information included: press releases, state task force reports, general promotion material, specific promotional material aimed at attracting high tech industries, and other detailed information regarding high tech industry development. 18. Job Service of Iowa, Research Division. 19. "Auto Fuel from Plants," "Bioengineering -Designer Genes," "Photonics," E4PS11U..3.rjenc , May, 1982. 20. "New Thrusts in Science and Technology -.The Next Twenty Years," Mr. William F. Miller, President, SRI International, September 19, 1981. 21. "Japanese Technology Today," SB3SD53f3.���n 22. "Whither Silicon Valley?," Dun,•,9_B2gjness 4alb Y, February, 1982. 23. "R 6 D Financing and the Emerging Technology Company," Coopers 6 Lybrand. 24. "Storm Clouds over Silicon Valley," ID9.n, September, 1982. ao7� 141CROEILMED By -J r JORM MICR4)LAB CEDAR RAPIDS • DES MOVIES - 50 - 25. "Gardening in Test Tubes," "Engineering the Botanical Gene," "Tillers of a Growing Technology," M48AI May/June, 1982. 26. "Genetic Engineering, its impact on the Food Industry," May, Food.EnaineeBg, y• 1 j MICROf1LMED BY I I' JORM MICR¢LAB' CEDAR RAPIDS • DES 14014ES I ao94- a P�,� p p P E N D I C E S F1ICRDEILIdED BY 1 I_ JORM MICROLA13 1 CEDAR RAPIDS DES MOINES j ' I - 51 - ao9N- r - 52 - Definition of Iiigh Technology No agreement has been reached on a specific definition of high technology or a high technology industry. Certain industries are, however, considered to be high technology: chemicals and allied products; machinery; electrical and electronic machinery and equipment; transportation equipment; measuring, analyzing, controlling instruments, photographic equipment, medical and optical equipment. Companies in these industries now account for 40 percent of all manufacturing jobs in the United States. ,SSl:n;3�3S_1�g51,�9 magazine identifies the following industries as high technology: pharmaceutical; commu- nications; aircraft; control instruments; computers; semi -conductors; scientific instruments; and medical instruments. Scient;��p�ajs�g concludes that the following characteristics exist in high technology companies: (a) advanced technologies are used in the manufacturing process and the final product, (b) a large percentage of revenues is spent on research and development, (c) their products have high growth rates and rapid obsolescence, (d) the value added to the product is high, (e) the companies tend to cluster around brain power and air transportation, (f) scientists and engineers comprise at least 10 percent of the workforce, and (g) and the executives are trained in technical fields. MICROFILMED BY J •� JORM MICROLAB J CEDAR RAPIDS • DES MOVIES i I �r 53 - The products and processes of high technology companies are on the edge of knowledge and where the distinction between research and manufacturing blurs. The high technology industries also concentrate in the physical sciences and life sciences - such as computers, communications, bioengineering, space technology, and electronics. Technology, innovation, and new product development are the primary considerations of the executives. rimRof ILMED BY i JORM MIC R4ILAO j CEDAR RAPIDS DES MOMES J clalq r a LF... 1 - 54 - Technological Hierarchy* (Engineers and Scientists as a Percentage of Total Employment) Leading Edge J— High Tech Base Industries 2�$ + Engj!)eeriDg_ .....,,�5g +,�pgjneerina .�1.2$ +.�19ineesina Custom Biologicals Pharmaceuticals Chemicals Micro Computers Computing & Office Machinery, Super Computers Equipment Electrical Space Satellite Communication Transportation VLSI, ULSI Equipment Equipment Circuits Aircraft Parts Instruments Missiles/New Medical Instruments Aircraft Controlling and Advanced Scientific Prosthetics Instruments Auto Analyzers source: scieBt3.Ll.g_.LWj "D - Marketing to the high growth, high technology segments of the U.S. Economy. Spring 1982. MICR0f IUdED BY l JORM MICR4?LAB 1 1 I � CEDAR RAPIDS DCS MDIYES ' _ a ao94 J� r M 14 c L._t - Location of High Technology PrQducts • • • Yw41331���� Pharmaceuticals Illinois New firms nearer to New Jersey research centers California of Washington, Boston and San Francisco Computers Massachusetts New concentration Minnesota developing in Florida California, California Boston, Florida, Michigan Texas, Oregon Ohio New Jersey Pennsylvania Texas Communications Maryland New growth in Maryland, New Jersey Michigan, Florida, Texas Texas, California California Components/ Texas Semi -conductors California Arizona Aircraft/Parts California Develop from existing Washington companies Maryland Texas Kansas Scientific, Oregon Develop near medical Controlling, Connecticut research and exist Medical Ohio ing companies Texas Pennsylvania i I4ICROFILI-IED BY JORM MICR6LAB - 1 CEDAR RAPIDS • DES MOINES ao7s