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.
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Thank you in advance for your attention regarding this matter.
Sincerely,
Mary C. Neuhauser
Mayor
cc: City Council
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City of Iowa City
MEMORANDUM
Date: • November 24, 1982
To: City Council ^
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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.
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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
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---, 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.
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Preliminary Feasibility Study
of Central Junior High School
for Conversion into Congregate
Housing for the Elderly
Iowa City, Iowa
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Prepared by
R. Neumann Associates
/ Architects • Iowa City , Iowa
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PRELIMINARY FEASIBILITY STUDY
OF
CENTRAL JUNIOR HIGH SCHOOL
FOR
POSSIBLE CONVERSION INTO
CONGREGATE HOUSING FOR THE ELDERLY
DECEMBER 1982
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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
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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
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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
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j 7 addressed.
Congregate housing must accomodate specific needs and the ability of
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this structure to adapt to these needs must be considered in our survey
procedure. These include:
A. Safety Needs
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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
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communication from dwelling unit. electronic portable
one or two way signaling devices.
3. Health Related Features --unobtrusive health care area.
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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.
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' 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.
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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:
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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.
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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
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structures which make up the overall Junior High School complex. The
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classroom building has been used continuously for educational purposes.
Such use is now being terminated and use of the building for other purposes
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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
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{ 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,
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restrooms and nursing facility).
4. Accessibility Requirements (corridor widths, door swings and
barriers).
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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,
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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
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building are more difficult to analyze and justify through building design.
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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.
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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
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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
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prime criteria.
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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.
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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
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general, are in good condition. The exterior brickwork has been well
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maintained and tuckpointing has apparently been done since original
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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
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Room and some classroom areas. Waterproofing from the exterior will,
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in all probability, be required along specific exterior wall surfaces.
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Structurally the building appears sound and adequate for purposes of
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housing conversion.
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EXTERIOR WALLS'
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Exterior walls are of brick masonry with masonry backup plastered. Walls
approximate V-0" in thickness but are not insulated. As indicated
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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
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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"
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T & G Maple strips.
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On grade floors, particularly Dining Room, Kitchen, Kitchen Storage and
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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
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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
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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
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(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
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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
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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
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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
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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.
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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.
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16. The building has a partial sprinkler system.
B. Comments
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1. Heating, Cooling, and Ventilation
a. The primary heating source of the building and adjacent
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building is an old Pacific fire tube boiler which has been
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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
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since the piping is old you can assume the piping, partic-
ularly the return piping, will provide some leaking conditions
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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.
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There is a make-up air system for the kitchen.
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The range hood in the kitchen has an exhaust fan in the
adjacent storage room.
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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
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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.
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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.
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If a lot of money and effort is spent remodeling the
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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
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A new building will be more compact and more efficiently
designed and thus the length of piping, sewers, etc. between
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bathrooms would be shorter and therefore cheaper.
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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
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sewers within the building.
c.
The 2" water service appears to be adequate in size, however
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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.
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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
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bathrooms would be shorter and therefore cheaper.
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3. Fire Protection
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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
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will need to be revised and unless the sprinkler system is
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abandon (which would be unwise with all the wood construction
in the building), the unsprinklered rooms would need to be
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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.
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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.
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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.
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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.
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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.
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The above costs reflect the fact that the building is uninsulated and
has a disproportionatly large tubage to square foot area.
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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,
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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
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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?
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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.
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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.
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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.
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ESTIMATE
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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
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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.
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195,800
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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.
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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.
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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
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1,504,449
Mote: Cost of movable equipment,
kitchen equipment,
landscaping
and fees
is not
included.
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*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
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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.
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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
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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
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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.
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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.
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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.
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City of Iowa City
MEMORANDUM r\
Date: November 19, 1982
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To: Neal Berlin, City Manager ��
From: Larry McGonagle, Transit Manager. l
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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.
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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.
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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
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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.
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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
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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:
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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
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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
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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
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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
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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.„
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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
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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
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Report.
of the
High Technology
Task Force --
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Report of the
High Technology Task Force
LT•,.
Honorable Robert D. Ray
Governor, State of Iowa
November 1, 1982
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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
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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.
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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:
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.
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,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
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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
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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.
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George L. Benning
Thomas A. Mefferd
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Joseph Borqen
Rex Montgomery
Ross H. Gustafsson
Robert F. Neuwoehner
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Theodore A. Johnson
David H. Swanson
Mavis E. Kelley
Daniel J. Zaffarano
Robert H. Meier
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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.
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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."
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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
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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."
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' Hiah Techno�oa,4ioba i a�
—•�-•�.�9/acted states*
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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.
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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.
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*Source: Location of High Technology Firms and Regional
Economic Development
Subcommittee on Monetary and Fiscal Policies.
Congress of United States
June 1, 1982
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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
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proximity to major scientific and technological universities,
vocational/technical schools, air transportation, and a
supportive environment for scientists are also favorable to
Iowa.
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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.
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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
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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
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non-invasive techniques, (2) prostheses for joint
replacements, heart valves, cochlear implants, implantable
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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
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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- 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
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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:
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- 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
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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
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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
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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
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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
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percent of the oil consumed in the United States. Since
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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
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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
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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.
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*Research Department - Iowa Development Commission
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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
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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.
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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.
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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.
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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•
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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.
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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.
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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.
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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
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