HomeMy WebLinkAbout2017-05-02 Resolutionsol(I)
Prepared by: Steven J. Rackis, ICHA Administrator 410 E. Washington St., Iowa City, IA 52240; 319-887-
6065
RESOLUTION NO. 17-138
RESOLUTION ADOPTING THE IOWA CITY HOUSING AUTHORITY'S
ANNUAL PLAN FOR FISCAL YEAR 2017.
WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority and the
Department of Housing and Urban Development requires adoption of an updated Annual Plan; and,
WHEREAS, the Iowa City Housing Authority is required to update the Annual Plan under the Quality
Housing and Work Responsibility Act of 1998 ("QHWRA"); and,
WHEREAS, the Annual Plan provides details about the PHA's current programs and the resident
population served, as well as the PHA's strategy for addressing the housing needs of currently assisted
families and the larger community;
WHEREAS, the Annual Plan also serves as the annual application for grants to support improvements to
public housing buildings (Capital Fund Program);
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
The Iowa City Housing Authority's Annual Plan for Fiscal Year 2017 is approved.
2. The City Clerk is hereby authorized and directed to certify appropriate copies of this resolution
together with any necessary certification as may be required by the Department of Housing and
Urban Development.
Passed and approved this 2nd day of May 20 17 ,
MOOR
ATTEST:
CITY ERK
Approved by
City Attorney's Office
Resolution No.
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x
x
x
x
ABSENT:
ABSTAIN:
Thomas the
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
'r t CITY OF IOWA CIT
COUNCIL ACTIONREPOR 5d(1)
May 2, 2017
Resolution Adopting the Iowa City Housing Authority's Annual
Plan for Fiscal Year 2017.
Prepared By: Steven J. Rackis Sskll—
Reviewed By: Doug Boothroy, Tracy Hightshoe
Fiscal Impact: No Impact
Recommendations: Staff: Approval
Commission: The adopted report will be shared with the Housing and
Community Development Commission
Attachments: Annual Report FY17
Executive Summary:
The Public Housing Reform Act requires submission of an Annual Plan. The Annual Plan provides
details about the Public Housing Authority's (PHA) current programs and the resident population served,
as well as the PHA's strategy for addressing the housing needs of currently assisted families and the
larger community.
Background / Analysis:
The strategies for meeting the Iowa City Housing Authority's mission, goals, and objective are stated in
the Iowa City Housing Authority's 5 -Year Plan for Fiscal Years 2015-2019 and are contained in CITY
STEPS 2016-2020 Iowa City's Consolidated Plan for Housing, Jobs, and Services for Low -Income
Residents.
Annual Report — 2017
usingUTHORITV
410 E. Washington Street
Iowa City • Iowa • 52240.1826
To improve quality of life, the Iowa City Housing Authority acts as a
community leader for affordable housing, family self-sufficiency, and
homeownership opportunities.
Date: May 2, 2017
Annual Report — 2017
Table of Contents Pages
Staff 3
Executive Summary 4-5
Housing Choice Voucher (HCV) Program 6
Analysis of Public Housing Program 7
Family Characteristics 8
Family Characteristics and Working Families 8-9
Public Housing Waiting List
10
Housing Choice Voucher Waiting List
I I
Promoting Family Self -Sufficiency (FSS) & Homeownership
12-15
Comparison of funding for Calendar Years 2016 & 2017
16
Housing Authority Funding Sources Summary
17-18
Partnerships and Community Collaborations
19
Page 2
Annual Report — 2017
Staff
Housing Program Assistant Robin Butler
Housing Program Assistant Denise Kinnison
Housing Program Assistant Cam! Fox-Rummelhart
Housing Program Assistant Diana Huff
Office Manager Virginia Stroud
Family Self -Sufficiency (FSS) Mary Abboud
Coordinator
Public Housing/Homeownership Pat MacKay
Coordinator
Housing Choice Voucher (HCV) Heidi Wolf
Program Coordinator
Housing Administrator Steven]. Rackis
Intake/Customer Service Clerk Hannah Learnahan
Page 3
Annual Report — 2017
Executive Summary
Housing Choice Voucher (HCV), Veterans Supportive Services
(VASH) & Public Housing Program Highlights:
• The top 5 participant Heads -of -Household characteristics in the Housing
Authority's rental assistance programs are: Disabled and/or Elderly (58%);
Households withou minors (56%), White (55%), One-person households
(51%) and Working families (46%).
• Total voucher utiliution for Calendar Year (CY) 2016 = 98%.
• Average Public Housing occupancy for CY 2016 = 97% or 3 vacancies.
• Achieved "High Performance" status for the HCV program for Fiscal Year
(FY) 2016.
• The Housing Authority received an additional 6 VASH vouchers, bringing
the total to 83.
• Total available vouchers = 1,298
• Diversity of participants is increasing due to an influx of Sudanese and Con-
golese families.
Comparing the Iowa City Housing Authority to the other 70 Housing
Authorities in the State of Iowa. Effective dates included: October 1,
2014 —January 31, 2016:
• ICHA participants have higher average annual incomes - $14,119 vs.
$12,484;
• The ICHA assists more working families —46%vs. 34%;
• The ICHA assists fewer families receiving welfare — 6% vs. 17%;
• ICHA participants pay a higher average monthly amount of the contract
rent - $333 vs. $290.
Calendar Year 2017 Funding:
I. Due to the Federal Continuing Resolution (CR) that is currently in effect
until April 28, 2017, Housing Assistance Payments (HAP) renewal funding
for Calendar Year (CY) 2017 is 5% less than the CY 2016 funding level;
2. The President has committed to cut nondefense discretionary spending by
1% annually;
3. The Federal Department of Housing and Urban Development (HUD) pub-
lished Fiscal Year (FY) 2017 Fair Market Rents (FMRs) increased on average
by 17%;
4. As a result, the Iowa City Housing Authority's payment standards for CY
2017 increased, on average, by 7%;
S. Based on the above, the Iowa City Housing Authority's CY 2017 HAP fund-
ing could be reduced by approximately $700,000 and will not support our
historical voucher utilization rate of 98%+ (at least 1,191 families per
month).
Page 4
Annual Report — 2017
In short, the projected reduction in HAP funds coupled with increased expenses
related to the increased payment standards, will result in the Iowa City Housing
Authority serving fewer elderly, persons with disabilities, and low-income work-
ing families, at a time when the need for affordable housing is critical. Therefore,
the Iowa City Housing Authority applied for HOME funds to operate a Tenant
Based Rental Assistance program (TBRA). The Housing and Community Devel-
opment Commission recommended $200,000 for TBRA.
TBRA funding will mitigate the impact of projected HCV budget reductions and
the increased expenses as a result of the 170% increase in the HUD published
FMRs and subsequent 7% increase in the Iowa City Housing Authority's payment
standards. TBRA will allow the Iowa City Housing Authority to maximize the
number of elderly, persons with disabilities, and low-income working families
receiving rental assistance. TBRA is designed to meet 4 major objectives:
I. Promote decent, safe & sanitary housing for low-income families while
maintaining their rent payments at an affordable level;
2. To promote freedom of housing choice & provide low-income families
wider access to rental units in our jurisdiction;
3. To provide incentive to private property owners throughout our jurisdic-
tion to rent to low-income families by offering timely assistance payments;
4. To assist the local economy by increasing the occupancy rate & amount of
money flowing to the community,
Calendar Year 2017 Capital Improvement Funds
The Iowa City Housing Authority's 5 -Year Plan for Fiscal Years 2015.2019 was
approved by HUD on January 4, 2016. The Capital Improvement funds are ear-
marked for general maintenance and repair of the Public Housing units. As nec-
essary, these funds will also be used to upgrade structures, interiors, HVAC
systems, and appliances.
Page 5
Annual Report — 2017
Housing Choice Voucher Program
The Housing Choice Voucher Program (HCV) is fund-
ed by the U.S. Department of Housing and Urban De-
velopment (HUD) with the intent of increasing afforda-
ble housing choices for elderly, persons with disabilities.
& low-income working families. Participants with a
HCV voucher choose and lease safe, decent, and af-
fordable privately owned rental housing. Total number
of available HCV and Veterans' Affairs Supportive
Housing (VASH) vouchers = 1,298.
HCV Economic Impact: for Calendar Year 2016 (CY16), the Housing Choice
Voucher program paid approximately $7 million in Housing Assistance Payments
(HAP) to Iandlordslowners of rental properties in Johnson County. The vouchers in
use, as of 2/17/2017, in Iowa City (885) represents 4.8% of the total number of rental
units (18,197) in the City of Iowa City.
Following is the Johnson County breakdown by city. Overall voucher utilitation in
Johnson County shows fifty-five percent (55%) were households without minor chil-
dren.
Voucher Utiliza-
tion by City As
of 211712017
(total = 1,309)
% of Total
Total Population Johnson County # of Total Total ion B
Utilization B
Incorporated Voudiers By City y
Population City
# of House-
holds iw spout
minors By City
of House -
holds i 1
ds u
minors By G ty
Iowa City
67,862 50.00''/.
88S 67.60'/.
532
60.11%.
CanMI1e
18,907 13.90'6
213 16.30'6
105
4930'6
North Liberty
18,228 13.40'6
128 9.80/.
62
48.44'6
Salon
2,0371 1.50'/
IS 1.10'6
15
100.00'%
Oxford
8071 0.60'/.
10 0.80'/.
7
MON.
Tiffin
1947 1.40'6
3 0.20'/.
2
66.61'/.
Lone Tree
1,300 0.96'/.
2 0.20'/.
I
50.00''/.
Hills
703 0.52/.
4 0.30'/.
2
SO.OP/.
Johnson County
Total Population
135,736 Johnson County
Incorporated
114,558
/. of Johnson County Population Wig in Inco opted areas = 84%
' Source US. Decennial Census 2010 and North Liberty Special Census 2015.
42 MASH Vouchers 3'6 of total "uchersare being
utilized in the Cedar Rapids Metropolitan
Area
6 HUN Vouchers
<I% of total vouchersare being
utilized in Washington County.
I HCV Youcler <I% of total vouchersis being utilized in Iowa County.
Page 6
Annual Report — 2017
Public Housing
Public housing was established to provide
affordable, decent and safe renal housing for
eligible low-income families, elderly persons,
and persons with disabilities. The U.S. Depart-
ment of Housing and Urban Development
(HUD) distributes federal subsidies to the
Iowa City Housing Authority (ICHA), which
owns and manages the housing.
The eighty-one (8 1) Public Housing units are low-density and constructed to
conform and blend into the existing neighborhood architecture. The 81 Public
Housing units represent half (12) of 1% of the total number of renal units in
the City of Iowa City.
Public Housing Economic Impact for the City of Iowa City:
• Total CY 16 renal income from Public Housing properties = $269,129
• Payment in Lieu of Taxes (PILOT) paid to the Johnson County Assessor for
the Public Housing properties in CY 16 = $28,606
• In CY16, the Housing Authority paid $190,393 to private sector Iowa City
contractors for the capital improvement, general maintenance and repair of
the Public Housing properties.
Total Occupied Units w/
Public Housing Total by Occupied Occupied Units Minors (includes non.
Units Location 17/2017 No Minors school azed minors
Grant Wood
31
29
1
28
Friendship
22
18
S
16
Village Green
I I
11
8
3
Washington Hills5
4
1
3
Miller Orchard
3
I
3
Shimek
2
2
0
1
Lon ellow
2
2
1
1
Lucas Farms
2
2
0
2
Wetherby Friends
& Neighbors
I
1
0
1
Creekside
I
1
0
1
Pe erwo d
I
I
0
1
TOTAL
81
72
16
61
Page 7
Annual Report — 2017
Family Characteristics
ICHA Participant Characteristics. Definition of Participant (participant
family): A person or family that has been admitted to the Iowa City Housing
Authority's HCV, VASH or Public Housing program and is currently receiving
housing assistance.
Head of Household (HOH) Characteristics. Total Families = 1,339 as
reported to HUD: September I, 2015 — December 31, 2016
(multiple category reporting eliminated — like characteristics will;
equal 100%):
• Disabled and/or Elderly HCH
= 762 (58%)
• Households without Children
= 746 (56%)
• White HOH
= 736 (55%)
• One Person Household
= 683 (51%)
• Working Households
= 616 (46%)
• Households with Children
= 593 (44%)
• Disabled HOH ,
= 543 (41 %)
• Non-Disabled/Non-Elderly HOH
= 577 (43%)
• Black/African American HOH
= 576 (43%)
• Female HOH with Children
= 479 (36%)
• Elderly & Disabled HOH
= 145 (11%)
• Elderly HOH
= 74 (6%)
• Hispanic HOH
= 54 (40/)
• All Other Races HOH
= 40 (3%)
Income Sources: Total Families = 1,344 as reported to HUD: Sep-
tember I, 2015—(All Family Members: Many Families Have Multiple
Sources of Income):
• Social Security (SS)/Supplemental Security (SSI) = 60%
• Employment = 46%
• Family Investment Program (FIP/Welfare) = 6%
• With any Other Income = 13%
• No Income = 70/
* Child Support, Self -Employment Unemployment Insurance, Other Non -Wage Sources.
As of January 31, 2017, only eight (8) of the total 1,339 assisted households are
reporting PIP as the sole source of household income. This equals .005% of all
currently assisted households.
Page 8
Annual Report — 2017
Family Characteristics (continued)
Length of Participation as reported to HUD: October I, 2014 —January
31,2016:
• Less than 1 year
= 227 (17%)
• 1 to 5 years
= 509 (38%)
• 5 to 10 years
= 304 (23%)
• 10 to 20 years
= 247 (18%)
• Over 20 years
= 48 (4%)
Residence prior to admission — Currently Assisted:
Based on the residence identified on the preliminary
application andlor prior residence for port -ins. Residency preference does
not apply to HUD/VASH. (ICHA jurisdiction is Johnson County, Iowa
County, & Washington County North of HWY 92):
• ICHA Jurisdiction =1,170(84%)
• All Other State of Iowa Counties = 105 (8%)
• State of Illinois = 80(6%)
• All Other States = 40(3%)
Iowa City Community School District (ICCSD) information 2016-2017;
Total Enrollment & Free/Reduced (FIR) Lunch:
• Total ICCSD Enrollment K-12 = 13,514 Q
• Total ICCSD Eligible for F/R (37.3% of total) = 5,039
• Total ICHA (All Programs) Minors K-12 • = 960
• Total ICHA (All Programs) K-12 Eligible FIR = 935
@ Source: Page 26 of the ICCSD Enrollment, Demographic & Class Size Report, October 2016.
' Total may include children enrolled in the Clear Creek Amam School Distrim or children vvho have re-
ceived scholarships to attend Reginal.
Examples of Participants' Places of Employment:
Aramark Food Service. Best Friends Veterinary Care LLC, Blue Sky Satellite Service, Caring
Hands & More LLC. Check & Go, Crisis Center, Deadwood Tavern, Dept of Veterans Affairs,
Destiny Cruises & Tours Inc. (Owner), Dial Silvercrest Corp, Durham School Services, EPC
Inc, Faith Academy, Handicare, Happy Trails Daycare, HD Supply Management Inc, Hy -Vee,
Innovative Software Engineering Inc., ICCSD, John Roffman Construction, Legacy Pointe Assist-
ed Living, Loparex, Lucky's Market, Mass Markets, Mercy Hospital. Mid -Prairie Community
School District, Seg -Employed (cleaning services, private child care), Plank Family Dental Cen.
ter, Reach for Your Potential, Remedy Intelligent Staffing, Staff Management, STS Transporta-
tion Inc. Systems Unlimited, Team Staffing, Vangen% WalMart, West Liberty Foods, Whirl-
pool Corporation, Wig & Pen East
Page 9
Annual Report — 2017
Public Housing Waiting List January 3 I, 2017
Applicant (applicant family): A person or family that has applied for admission
to the Iowa City Housing Authority's Public Housing program but is not yet a partic-
ipant. Eligi6iliN for housing_pragrams is not established until applicants reach the tob of the
The Iowa City Housing Authority's jurisdiction is Johnson County, Iowa; Iowa Coun-
ty, Iowa; and, Washington County, Iowa, North of Highway 92. The general appli-
cant pool from which the Housing Authority draws to determine program eligibility
are elderly, disabled, and families with children under the age of 18 who are resi-
dents (have a legal domicile) or are employed, in our jurisdiction Johnson County,
Iowa County, and Washington County N of HWY 92).
When vacancies exist, the Housing Authority draws applicants from this pool by
date and time of application and only those applications of families who qualify for
the bedroom size of the available Public Housing units. The eligibility determination
process includes verification of residency, family composition, eligibility status, and a
national criminal background check conducted through the Iowa Department of
Criminal Investigation and the Federal Bureau of Investigation.
Public Housing Waiting List
Elderly, disabled, and families with children under Number of
the age of 18 who are residents (have a legal domi-
cile) or are employed, in our jurisdiction. Applicants
% of Applicants
543 *
100%
Elderly
57
10%
Disabled
252
46%
Families w/minor Children
282
52%
White Head of Household
244
45%
Black/African American Head of Household
248
46%
Multiple races or none reported
37
7%
All Other Races Head of Household
14
3%
His anic
Head of Household
41
8%
* An additional
7.993 aoolicants are on the list in lower Preference categories (Head -
of -Household totals do not add up to 100% because individuals can be counted in
multiple categories):
Page 10
Annual Report — 2017
HCV Waiting List January 31, 2017
The HCV waiting list shares the majority of the characteristics described in the Public
Housing section. There is a great deal of duplication as the majority of applicants apply
to both lists. For HCV applications, bedroom size is not taken into consideration.
When vouchers are available, the Housing Authority draws applications, by date &
time of application, from the applicant pool that contains elderly, disabled, and families
with children under the age of 18 who are residents (have a legal domicile) or are
employed, in our jurisdiction (Johnson County, Iowa County, and Washington County
N of HWY 92).
The eligibility determination process includes verification of residency, family composi-
tion, eligibility status, and a national criminal background check conducted through the
Iowa Department of Criminal Investigation and the Federal Bureau of Investigation.
Housing Choice Voucher Waiting List
Elderly, disabled, and families with children under the age Number of
of 18 who are residents (have a legal domicile) or are
employed, in our jurisdiction. Applicants
% of Appli-
cants
1022
100%
Elderly
99
10%
Disabled
415
41%
Families w/minor Children
624
61%
White Head of Household
446
44%
Black/African American Head of Household
487
48%
Multiple races or none reported
69
7%
All Other Races Head of Household
20
2%
His anic
Head of Household
69 1
7%
* An additional
19.028 aoDlicants are on the list in lower Dreference cateeories (Head -of
-Household totals do not add up to 100% because individuals can be counted in multiple
categories):
Page I I
Annual Report — 2017
Promoting Self -Sufficiency & Homeownership
The lack of safe, decent, and affordable housing
undermines quality education, public health, and
economic growth. Affordable housing is a contrib-
uting factor to stabilizing families. Stable families are
better equipped to take advantage of educational
opportunities. With opportunities for and access to
advanced education and training, families increase
their employability. Sustainable employment offers
opportunities to attain self-sufficiency. Economic self
-sufficiency leads to a better society and strengthens
the "sense of community:'
Through our Self -Sufficiency programs, the Housing Authority is helping low
income families bridge the economic gap by building assets, improving employ-
ment opportunities, and transitioning from renters of units to owners of homes.
The Family Self -Sufficiency (FSS) Program: Promotes self-sufficiency
and asset development by providing supportive services to participants to in-
crease their employability, to increase the number of employed participants, and
to encourage increased savings through an escrow savings program.
Current FSS Enrollment Data (2/10/2017):
• Total FSS participants =188
• Participants with an escrow savings account =145 (77%)
• Average monthly escrow savings deposit
(participants with an escrow balance) = $294
• Average escrow savings account balance
(participants with an escrow balance) = $3,460
• Highest escrow savings account balance = $21,538
Workshop Accreditations:
• "Money Smart": Federal Deposit and Insurance Corporation (FDIC).
FSS Workshop Collaborations
• April 2016: Personal Budgeting Workshops. Collaborated with Habitat
for Humanity.
May 2016: Starting a Business Workshop Series. Collaborations with
Page 12
Annual Report — 2017
Promoting Self -Sufficiency & Homeownership
(continued)
area banks and credit unions, Kirkwood Community College, City of Iowa
City, Sankofa Outreach Connection and Community CPA.
• September 2016: Job Seeker Skills. Collaborated with Shelter House.
FSS Program Coordinating Committee:
The FSS Program Coordinating Committee has been replaced with three (3)
already existing wider -reaching networks that have lessened the duplication of
effort in leveraging community resources to promote self-sufficiency among FSS
program participants.
The FSS coordinator has joined the Community Reentry Network of Johnson
County Area which includes representatives from educational institutions, em-
ployment services, government agencies, housing agencies, neighborhood cen-
ters, labor programs and family services. Participating entities:
• Center for Worker Justice.
• Goodwill of the Heartland.
• Inside Out.
• Iowa City Housing Authority.
• Iowa Department of Corrections, 6th Judicial District.
• Iowa Works.
• Jane Boyd Community House.
• Kirkwood Community College.
• Labor Ready.
• Neighborhood Centers of Johnson County.
• Shelter House.
• Teamsters Local 238.
The Iowa City Housing Authority is also a partner in the Workforce Innovation
& Opportunity Act (WIOA) one-stop career center service delivery system.
WIOA reinforces the partnerships and strategies necessary for one -stops to
provide job seekers and workers with the high-quality career services, educa-
tion and training, and supportive services they need to get good jobs and stay
employed, and to help businesses find skilled workers and access other sup-
ports, including education and training for their current workforce. Participating
entities:
• Kirkwood Community College.
• Iowa Workforce Development.
Page 13
Annual Report — 2017
Promoting Self -Sufficiency & Homeownership
(continued)
• Iowa Vocational Rehabilitation.
• Iowa Department for the Blind.
• Experience Works.
• AARP.
Denison Job Corps.
• OttumwaJob Corps.
• Proteus.
Hawkeye Community Action Agency.
• Cedar Rapids Housing Authority.
• Iowa City Housing Authority.
Homeless Case Management Sub -Committee of the Local Homeless Coordinat-
ing Board. This group meets to ensure coordination of services provided to
families, improve collaboration of services, identify unmet needs, and seek solu-
tions. Participating entities:
• City of Iowa City.
• Domestic Violence Intervention Program.
• Hawkeye Community Action Program (HACA)
• Iowa City Community School District.
• Iowa City Housing Authority.
• Iowa Legal Aid.
• Johnson County Social Services.
• Prelude Behavioral Services.
• Shelter House.
• United Action for Youth.
Homeownership Programs:
FSS Homeownership: Through our FSS program, many families have used
their escrow savings accounts and private mortgages to attain homeownership
independent of the Housing Authority programs. Fifty-nine (59) FSS graduates
have moved to homeownership.
HCV Homeownership Program: Eligible participants have the option of
purchasing a home with their HCV assistance rather than renting.
• Forty (40) HCV Vouchers have been used to purchase homes since Janu-
ary 2003; Sixteen (16) HCV Vouchers are currently active.
Page 14
Annual Report — 2017
Promoting Self -Sufficiency & Homeownership
(continued)
Tenant -to -Ownership Program (TOP): The Tenant -to -Ownership Pro-
gram is funded by HUD. The TOP program offered opportunities for low to
very low-income families to purchase single-family homes owned by the Housing
Authority.
• Twenty-six (26) homes have been sold and ten (10) resold since May
1998.
Affordable Dream Home Ownership Program (ADHOP): The Afforda-
ble Dream Home Ownership Program is operated, managed and funded solely
by the ICHA. It offers opportunities for income eligible families to purchase
newly constructed homes, newer homes, or resale of homes purchased through
the TOWADHOP programs.
• Sixteen (16) homes (10 "Universal Design" homes) were built and sold
since May 1999.
Down Payment Assistance Program — Grant Award $187,500: Funded
with Fiscal Year 2009 HOME funds. First-time homebuyers with a household
income of less than 80% of the Area Median Income (AMI) may be eligible for a
forgivable loan for down payment assistance. At the date of this publication:
• 20 families purchased homes (total funds expended) _ $187,500
• Families with household income 60-80% of AMI = I I
• Families with household income <60% of AMI = 9
UniverCity Neighborhood Partnership: The UniverCity Neighborhood
Partnership is an effort by the City of Iowa City focusing on neighborhoods
located near the University campus that retain a single-family character and a
demand for single-family housing, but that also have a large renter population.
From May 2011 to May 2015, the Iowa City Housing Authority provided
$102,276 in down payment assistance to sixteen (16) families purchasing a Uni-
verCity home.
In FY2014, the ICHA allocated $170,000 to the UniverCity Neighborhood Part-
nership for the rehabilitation of homes purchased by the City of Iowa City. In FY
2015, an additional $20,000 was allocated for rehabilitation of homes. From June
2014 to September 2015, ICHA funds in the amount of $165,164.25 were used
for the rehabilitation of eight (8) homes purchased by the City of Iowa City.
Page IS
Annual Report — 2017
Comparison of Calendar Year (CY) 2016 & 2017 Funding
The United States Congress allocates funding and passes laws for all housing
programs. The U.S. Department of Housing and Urban Development's (HUD)
role in the locally administered housing programs is to allocate money to local
housing authorities and to develop policy, regulations and other guidance that
interprets housing legislation.
The Actual Funds Received for CY16. Due to a Federal Continuing
Resolution through April 28, 2017, the Housing Authority cannot esti-
mate funding for CY 17:
Housing Choice Voucher Program CY 16
• Annual Contributions Contract
= $7,654,187
• Family Self -Sufficiency Grant
= $121,721
• Fraud Recovery
= $66,567
Public Housing_CY 16
• Operating Subsidy
= $269,129
• Rental Income
= $318.332
• Reimbursement of Expenses/Fraud Recovery
= $7,149
• Capital Funds Program (CFP)
_ $106,741
Total Housing Authority Funding CY 16
= $8.543.826
Page 16
Annual Report — 2017
Iowa City Housing Authority (ICHA) Funding Sources
ICHA income and cash sources (the uses of the cash sources
are based on relevant HUD notices and signed agreements
between the Housing Authority and HUD):
Housing Choice Voucher (HCV) Administrative Fees
Administrative fees are available to the ICHA for the operation and manage-
ment of the HCV program. Starting January 31, 2004, HUD and Congress,
through the approval of the Annual Appropriations Act, restricted the use of ad-
ministrative fee income to activities related to the HCV tenant -based rental assis-
tance and related development activities (PIH Notice 2008-15).
Housing Assistance Payments (HAP)
HUD provided funds to cover the housing subsidy paid to owners/landlords
directly by the ICHA on behalf of the participating family. The family pays the
difference between the actual rent charged by the landlord and the amount
subsidized by the program. Under certain circumstances, if authorized by the
ICHA, a family may use its voucher to purchase a modest home.
HUDIVeterans' Affairs Supportive Housing (VASH)
Tenant based rental assistance funds targeting homeless veterans participating in
VA Case Management Services.
Family Self -Sufficiency (FSS)
The FSS program is a tenant self-sufficiency work incentive program. ICHA estab-
lishes cash accounts for tenants that will be available to the tenant if the tenant
completes the program. ICHA's contributions to these accounts are funded by
HUD through the ICHA's regular funding process. FSS ash is not available to
ICHA for any other use.
Public Housing Operations
Under Section 9(3) of the Housing Act of 1937, Operating Funds are available
to the ICHA for the operation and management of the Public Housing program.
These funds assist the ICHA in bridging the gap between the rent collected and
the operating expenses of the program. Operating cash is only available for the
use and benefit of public housing units and residents.
Page 17
Annual Report — 2017
ICHA Funding Sources (continued)
Housing Authority Capitol Fund Grants
HUD provides funds to the ICHA to improve the physical condition, upgrade
the management and operation and carry out other activities for Public Housing
developments. These funds are primarily used for general maintenance and re-
pair of the Public Housing units. As necessary, these funds will also be used to
upgrade structures, interiors, HVAC systems and appliances. Capital Funds are
calculated and allocated by an established formula.
Affordable Dream Homeownership Program (ADHOP)
On September 3, 1993, the ICHA entered into a Section 5(h) Agreement with
HUD. The purpose of this program is to create affordable home ownership oppor-
tunities throughout Iowa City. This agreement authorizes the ICHA to sell Public
Housing units and use the sales proceeds to construct or purchase homes for reha-
bilitation to continue the cycle. To ensure affordability, the ICHA provides a se-
cond mortgage for the homeowners.
Broadway Sales Proceeds
ICHA received approval from HUD for the sale of 18 units at 192611946 Broadway
Street Per the approved plan submitted to HUD, the sales proceeds were to be
used for the development of 18 low-density scattered site replacement units that
would be more efficiently and effectively operated as lower income housing. There
is no other permissible use of these funds per the agreement
Public Housing Tenant Security Deposits
The ICHA holds security deposits until tenants vacate units. At that time, the ten-
ants receive a full or partial refund depending on such factors as remaining rental or
other charges outstanding and reimbursement of damage repairs. Tenant security
deposit cash is not available to ICHA for any other use.
Page 18
Annual Report — 2017
Partnerships and Community Collaborations
• University of Iowa School of Social Work.
• Women's Resource and Action Center (WRAC).
• Montessori School.
• Goodwill of the Heartland.
• Habitat for Humanity.
• Iowa Women's Foundation.
• Iowa City Junior Service League.
• Shelter House.
• Iowa State University (ISU) Extension.
• Iowa City Area Association of Realtors.
• Hawkeye Area Community Action Program (HACAP).
• Foster Grandparents Program.
• The Housing Trust Fund of Johnson County (HTFJC).
• "Good Neighbors -Strong Neighborhoods".
• Reclaiming Roots.
• City of Iowa City Parks &Recreation.
• City of Iowa City Neighborhood Services.
• Iowa City Public Library.
• Iowa City Human Rights Commission.
• Domestic Violence Intervention Project (DVIP).
• Johnson County Department of Public Health.
• Horizons Community Credit Counseling.
• Johnson County Local Homeless Coordinating Board.
• FUSE—Housing First
• Workforce Innovation & Opportunity Act (WIOA) Partners.
• Veterans' Administration.
• Kirkwood Community College.
• Reentry Network of Johnson County.
Current Homeownership Programs Lender List:
• Midwest One Bank
• American Bank & Trust
• Liberty Bank
• Hills Bank
• West Bank
• UI Community Credit Union
• Farmers & Merchants Bank
• Habitat for Humanity
• Cornerstone Mortgage
• US Department of Agriculture (USDA)
• Freedom Security
• Residential Mortgage Network
Page 19
Annual Report — 2017
0E–
ousing
iUTHORIT
410 E. Washington Street
Iowa City • Iowa • 52240.1826
We provide:
Information and education,
Housing assistance,
Public and private partnership opportunities.
Phone: (319) 356-5400
FAX: (319)356-5459
Web: www.icgov.orglicha
Page 20
Prepared by: Kent Ralston, Transportation Planner, 410 E. Washington Street, Iowa City, IA 52240 (319) 356-5253
RESOLUTION NO. 17-1
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST AN AMENDMENT TO THE NOVEMBER
1, 2016 AGREEMENT BY AND BETWEEN THE CITY OF IOWA CITY AND ALTA
PLANNING & DESIGN TO PROVIDE CONSULTANT SERVICES FOR THE IOWA CITY
BICYCLE MASTER PLAN PROJECT.
WHEREAS, on November 1, 2016 the City and Consultant entered into a consultant agreement to create
a Bicycle Master Plan for the City of Iowa City; and
WHEREAS, at the February 7, 2017 City Council Work Session staff was given direction to analyze the
potential for a 4-3 lane conversion on Gilbert Street between McCollister Boulevard and Market Street; and
WHEREAS, the City of Iowa City has negotiated an amendment to the original Bike Master Plan Consultant
Agreement with Alta Planning & Design to provide said services; and
WHEREAS, it is in the public interest to enter into said Consultant Agreement with Alta Planning & Design;
and
WHEREAS, funds for this project are included in the FY17 Capital Improvement Program
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA,
THAT:
The City Manager and City Clerk are hereby authorized and directed to execute an amendment to
the Consultant Agreement to add the above-described services.
2. The City Manager is authorized to execute contract amendments that are deemed necessary to
complete the design of the above-named project.
Passed and approved this 2nd day of May '2017.
ATTEST: Q .
CITY—CLERK `
MA
Approved by
'2& M AA0,v, rn,
City A orneys Office,J' 2�
Resolution No. 17-139
Page 2
It was moved by Botchway and seconded by Thomas the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT: ABSTAIN:
x
Botchway
x
Cole
x Dickens
x
Mims
x
Taylor
x
Thomas
x
Throgmorton
1 r �
144 M41
CITY OF IOWA CI
COUNCIL ACTION REPO"
May 2, 2017
Resolution approving, authorizing and directing the City Manager to execute
and the City Clerk to attest an amendment to the November 1, 2016
agreement by and between the City of Iowa City and Alta Planning & Design
to provide consultant services for the Iowa City Bicycle Master Plan Project.
Prepared By: Kent Ralston, Transportation Planner
Reviewed By: Doug Boothroy, Director, Neighborhood & Development Services
Geoff Fruin, City Manager .
Fiscal Impact: Not to exceed $58,602, available in the Annual Complete Streets
Improvements account # S3827
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The City desires to expand the scope of the Bike Master Plan agreement with Alta Planning &
Design to provide additional analysis of the potential for a 4-3 lane conversion within the Gilbert
Street corridor between Market Street and McCollister Boulevard. If a 4-3 lane conversion is
feasible, this would potentially allow for the addition of bike lanes within all the corridor.
A not to exceed fee of $58,602 has been negotiated with Alta Planning & Design to perform the
additional services beyond the current contract scope for the Bike Master Plan.
Background / Analysis:
The City of Iowa City entered into a contract for consulting services with Alta Planning & Design,
Inc. of Chesterfield Missouri on November 1, 2016 to create a Bicycle Master Plan for the City.
At the February 7, 2017 City Council Work Session, the Council authorized the City Manager to
retain the services of a consultant to perform additional analysis of the Gilbert Street corridor to
assess whether a 4-3 lane conversion is feasible. Such a conversion, if feasible, would
potentially allow for bike lanes to be added to the corridor.
Gilbert Street—Corridor
Active Transportation Planning Study
Alta Planning+ Design Page 1 of 4
Exhibit A
Services
Alta will prepare an assessment for the Gilbert Street corridor from McCollister Boulevard to Market Street.
Alta will use a multi -step process for the evaluation of the study corridor including problem identification
and existing conditions assessment, stakeholder engagement, development of alternatives, and final
recommendations for the preferred alternative.
1 Data Collection
Task 1.1 -Alta will request data from the City of Iowa City regarding previous initiatives and planning studies
along Gilbert Street, as well as any available roadway concepts developed for the study corridor or previous
public engagement activities relevant to this project. Alta will also collect from the city traffic count data and
signal timing for Gilbert Street at 9 intersections in the corridor. If there has been past traffic analysis
performed by the city in the corridor, the city will provide this information including the Synchro model, if
available.
Peak Hour counts to be provided by the City:
M arket/J efferson/Iowa/W ashi ngton/College/Bu rl ington/Court/Stevens/Mccol lister
Peak Hour data to be collected by Alta: Prentiss/Kirkwood/Hwy 6/Benton/Highland/Southgate
Task 1.2 -Alta will collect traffic counts including people biking and walking at six (6) intersections during AM
and PM peak hours.
Alta will perform a field visit to conduct travel time runs in both directions of the Gilbert Street corridor
during the AM and PM weekday peaks. During the field visit, Alta will also observe queue lengths for all
approaches to the intersections.
Deliverables:
D3.1 Not Necessary
D1.2 Data Collection for six (6) intersections and Travel time run and corridor inspection
2 Existing and future Conditions Analysis
Task 2.1- The Project team will utilize information collected during the bike plan process, as well as assess
recent crash information available for pedestrians and motor vehicles to identify trends in collision types and
location. This data will help inform the Project team of dangerous road segments and behaviors, in order to
identify solutions to address these issues and incorporate them into proposed alternatives,
Alta will create AM and PM peak existing conditions models for the nine (9) signalized and six (6) un -
signalized intersections along the Gilbert Street corridor using traffic count data, travel speeds and signal
timing data. The existing models will be calibrated using travel time run data and observed queue lengths to
reflect existing field conditions. The Feld data will be compared to the corridor performance output
provided by SimTraffic, and the model variables will be adjusted as necessary through an iterative process
until the model performance measures are within an acceptable error percentage of the existing field
conditions.
Alta will perform capacity analyses of existing conditions to determine the base conditions for levels of
service (LOS), delay, 95`h percentile queues, and travel time through the corridor.
Task 2.2 - Based on data provided by the City, as well as data collected by Alta, we will document use of the
corridor by people walking and biking, as well as transit use. The existing conditions assessment will include
a discussion regarding land uses in the corridor and types of vehicles, operations and services relevant to the
corridor and areas the corridor serves.
Gilbert Street — Corridor
Active Transportation Planning Study
Alta Planning + Design Page 2 of 4
Study Intersections
Peak Hour counts to be provided by the City:
Market/Jefferson/lo wa/Washing ton/College/Burlington/Court/Stevens/Mccollister
Peak Hour data to be collected by Alta: Prentiss/Kirkwood/Hwy 6/Benton/Highland/Southgate
(If traffic analysis indicates the corridor is favorable for a travel lane conversion Alta will continue to Task
2.3. If not, the project will stop at this point.
Task 2.3 —Alta will develop the Vision, Goals and Objectives for the Corridor based upon analysis of
existing conditions indicating that a travel lane conversion will benefit the corridor and not create
negative operational impacts.
Deliverables:
D2.1 Traffic Analysis memorandum of existing conditions for nine (9) signalized and six (6) non -
signalized intersections.
D2.2 Existing Conditions Summary
D2.3 Develop Vision, Goals and Objective Statement
D2.4 Future 2045 Analysis for the 15 intersections
3 Stakeholder Engagement
Following the analysis of existing conditions and favorable results for a travel lane conversion, Alta will
proceed with community engagement in the corridor related to existing conditions and alternatives for
travel lane configuration.
Task 3.1- Alta will coordinate with the City to identify key stakeholders in the corridor and hold no more
than four (4) meetings to define conditions, challenges and opportunities from the stakeholder's
perspectives. Alta will take notes for meetings with stakeholders and document comments.
Task 3.2 -Alta will lead no more than (1) public meeting to engage the general public. The initial open
house will be used to develop a problem statement for the corridor, as well as a vision and goals for
meeting current and future needs to serve the community. The meeting will also discuss potential
alternatives, and incorporate feedback in the development of the preferred alternative for the corridor.
The public meetings will include display boards and presentations with information regarding existing
conditions, criteria for evaluation and potential concepts to be implemented in the corridor.
The City will arrange a location for the public meetings and advertising of the meetings. Information
obtained from the stakeholder and public meetings will be incorporated into the existing conditions
analysis, and proposed alternative improvements for the corridor.
Deliverables:
D3.1 Meeting minutes for four (4) key stakeholder meetings for transmittal to the City.
D3.2 Prepare for and Attend One Public meeting.
4 Alternative Development and Evaluation
Following the analysis of existing conditions and favorable results for a travel lane conversion, Alta will
proceed with development of alternatives for travel lane reconfiguration.
Task 4.1- Based on analysis of existing and future conditions and stakeholder engagement, Alta will develop
no more than three (3) concepts for reallocation of existing road space to enhance safety and mobility for all
road users, provided existing and 2045 traffic analysis for the existing roadway configuration indicate that
capacity exists for travel in the corridor. These concepts will attempt to work within the existing right-of-way
Gilbert Street—Corridor
Active Transportation Planning Study
Alta Planning + Design
3 of
and pavement where possible to present low-cost options and take advantage of existing infrastructure in
the corridor. The concepts included in this task will be conceptual level plans for no more than three
alternatives.
Task 4.2 - In evaluating options Alta will use a multi -step approach. Initially we will look at average daily
traffic and parking to determine high level needs in the corridor travel in the corridor to assess the
viability for reallocating space. If there is an indication through a high level look at ADT's, Alta will identify
elements for the corridor including bikeways, widening of sidewalks, narrowing of pedestrian crossings,
medians, transit access, and green infrastructure. We will analyze the impact on the vehicular levels of
service (LOS) for each alternative concept based on the acceptable LOS defined in the goals and objectives
statement In addition to vehicular level of service, Alta will assess the benefits of changes in the corridor
for those biking, walking and using transit, as well as impacts on land -uses and businesses based on goals
and objectives for the corridor. Following the development of initial conceptual alternatives, Alta will
develop inputs to the traffic model that will be used to modeling traffic at an operations level of detail.
Task 4.3 -The assessment of options will include a planning level of cost for each alternative.
Task 4.4 —Alta will prepare an alternative analysis memorandum to document how each alternative
reflects addressing goals defined in the corridor.
Deliverables:
D4.1 Develop conceptual alternatives in plan and cross section that exhibit the proposed scenario for
no more than three (3) alternatives.
D4.2 Prepare traffic analysis for each alternatives developed based on the analysis in the existing
conditions and future analysis.
D4.3 Develop costs for each option.
D4.4 Prepare Alternative Evaluation Memorandum.
5 Final Corridor Recommendation (Early Action and Long Term Solution)
Task 5.1- Based on Tasks 1-4 Alta will develop final recommendations, operational analysis results and
estimated costs for the preferred alternative. The memorandum will include a refined cross section,
concept plan, and no more than three (3) photo simulations of the preferred alternative.
Task 5.2 -Alta will develop an early action project to execute an interim level of implementation of the
preferred alternative. The early action project will allow a short timeframe from completion of the study
to changes on the street in preparation for the programming and construction of the preferred option.
Signal timings for the preferred option will be provided for the interim option.
Deliverables:
135.1 Final recommendation report including traffic analysis of forecasted traffic volumes (2045) in the
future condition for the preferred option
D5.2 Early Action Concept Plan
Exhibit B
Estimated Schedule
0 The Corridor Study will take place from April to July, 2017.
Gilbert Street — Corridor
Active Transportation Planning Study
Alta Planning + Design Page 4 of 4
Exhibit C
Schedule of Fees and Charges
alta
� Exhibit C - FEE
12 -Apr -17
Gilbert Street Corridor Complete Street Analysis
TASK
PHASE 1
Principal/.
PM Associate
Iowa City, IA
ALTA
,.
Planning Sr. Designer Engineer Designer Sr.
Intern Engineer
Planner
Total . .
Hours by
Task Sub Task
. . ... .
by Task
$22,098
Task 1: Data Research
0
0
1.1 Compile Data for Analysis
2
36 2 2
2
44
44
1.2 Field visit (travel time runs, observations)
16 2
18
18
0
0
Deliverables:
D1.2 Data Collection for six (6) non -signalized intersections
Task 1 Cost Total
Task 2: Existing Conditions Analysis
00
i
i $4,472 $552 $0 i i
2
62
62
2.1 Data Assessment
1
4 24 2 2
33
33
2.2 Traffic Analysis and 2045 Segment ADT Assessment
8
8 40
56
56
2.3 Prepare Existing Conditions Memorandum
4
1 8 8
8
29
58
2.4 Develop Vision, Goals and Objectives Memorandum
2
2
16
20
20
Deliverables:
D2.1 Traffic Analysis memorandum of existing traffic operations conditions for nine (9) signalized
and six (6) non -signalized intersections.
D2.2 Existing Conditions Memorandum.
D2.3 Vision, Goals and Objective Memorandum including evaluation Criteria for Alternative
Analysis
Task 2 Hours Total
Task 2 Cost ..l
HA
15
$3err
7 24 18 r 50 0
$1,274 $2,064r $4,750
24
138
167
i
$24,602
Task 3 — Statkholder Engagement
3.1 Key Stakeholder Meetings (4)
10
10
20
20
3.2 Open House Meeting
8
2 4
8
22
22
0
0
Deliverables:
D3.1 Meeting minutes for key stakeholder meetings 4
D3.2 Develop Open House Materials for Open House #1
Task 3 Hours Total
TotalTask 3 Cost
Task 4 — Alternative Development and Evaluation
00
4.1 Develop Alternatives (3)
3
1
2
24
4
20
54
54
4.2 Traffic Analysis of Alternatives with current volumes and 2045 segment look
3
2
4
32
41
41
4.3 Develop Costs for Alternatives
3
1
20
24
24
4.4 Evaluation of Alternatives
3
1
8
8
16
36
36
Deliverables:
D4.1 Develop concept plan documents that exhibit the proposed scenario for no more than
three (3) alternatives.
D4.2 Prepare traffic analysis for alternatives developed based on the analysis in the
existing conditions analysis, including use of forecasted traffic volumes (2045) in the future
condition for the preferred option.
D4.3 Develop costs for each option.
D4.4 Prepare Alternative Evaluation Memorandum.
Task 4 Hours Total
Task 4 Cost Total
PHASE 3
12
$2,400
5
i
i
$0
6
$828
32
$3,584
44
$4,180
0
56
155
155
$9,872
Task 5 — Final Corridor Recommendation (Early Action and Long Term
Solution
5.1 Develop Final Alternative Concept and Recommendation
4
2
4
8
8
8
0
5.2 Prepare 2045 Traffic Analysis
4
2
16
0
5.3 Develop Early Action Plan
4
4
8
8
0
0
0
0
Deliverables:
D5.1 Final recommendation and concept
D5.2 Early Action Concept Plan
TotalTask 5 Hours
59
$11,800
16
$2,912
76
$6,536
i
38
$5,244
16
52
$5,824
32
128
$12,160
0
0
$0
8
108
$12,096
:i
Total 477
Labor: $56,572
Total Hours by Staff
Total Labor Fee by Task
Sd (3)
Prepared by: June Nasby, Buyer II, 410 E Washington St, Iowa City, IA 52240 (319) 356-5076
RESOLUTION NO. 17-140
RESOLUTION AUTHORIZING THE PROCUREMENT FOR THE REMOVAL
AND DISPOSAL OF LIME RESIDUAL MATERIAL
WHEREAS, a Request for Proposal was put out to solicit proposals from qualified contractor(s) for
the removal and disposal of lime residual material; and
WHEREAS, three proposals were received for the removal and disposal of Lime Residual
Material; and
WHEREAS, an evaluation committee composed of City staff members selected Oros & Busch
Application Technologies; and
WHEREAS, the initial term of the City's contract with Oros & Busch Application Technologies will
be three years, with an option to renew for two one-year terms; and
WHEREAS, in future renewals, the City expects to spend a similar amount on this purchase; and
WHEREAS, the purchase price for this project is $145,000 per year for a total of $435,000 for a
three-year contract, which exceeds the City Manager's spending authority of $150,000, thus
requiring City Council approval; and
WHEREAS, funds for this purchase are available in account # 73730120-445230; and
WHEREAS, approval of this procurement is in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The proposed procurement as described is approved.
2. Upon the approval of the City Attorney, the City Manager is authorized to take whatever steps
are necessary to effectuate the purchase, and to execute subsequent renewals as are
reasonable and appropriate.
Passed and approved this 2nd day of May 20 17
M OR
Approved by u
ATTEST:
CI CityAttdfney's Office
Resolution No. 17-140
Page 2
It was moved by Botchway and seconded by Thomas the
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x
x
x
x
ABSENT:
X
ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
�m r p 1 CITY OF 1 O WA CIT 05-02-1
5d 3
COUNCIL ACTION REPO
May 2, 2017
Resolution authorizing the procurement for the removal and
disposal of lime residual material
Prepared By: June Nasby, Buyer II
Reviewed By: Mary Niichel-Hegwood, Purchasing Agent
Dennis Bockenstedt, Finance Director
Simon Andrew, Assistant to the City Manager
Fiscal Impact: The total cost of the project will be $435,000 for a three-year contract
budgeted in 73730120-445230 in the Water Fund.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The Lime Solids Removal Service followed a request for proposal process, for which proposals
were received from qualified vendors. An evaluation committee composed of City staff members
individually reviewed the proposals based on the criteria set forth in the request for proposal
document. After careful review of the proposals and follow-up questions, the evaluation
committee recommends Oros & Busch Application Technologies to receive the award. The
initial term of the contract will be for three years at a cost of $145,000 per year, for a total of
$435,000, with an option to renew for two additional one-year periods.
Background / Analysis:
The Iowa City Water Treatment Facility utilizes lime (calcium hydroxide) in the water treatment
process to reduce calcium and magnesium hardness and remove microorganisms and
dissolved organic matter from source water. The lime softening process produces large volumes
of a mixture of calcium carbonate and magnesium hydroxide in a very finely divided white
precipitate, which may also contain organic matter that was removed from the source water.
The Water Division operates and maintains two lime sludge holding and dewatering lagoons to
store lime solids until they can be recycled onto agricultural land as an alternate to granular
quarry limestone. The process requires lime solids removal from one of the lagoons every year
on a rotating basis.
s(4
Prepared by: Kumi Morris, Facility Manager, City of Iowa City, 410 E. Washington St., Iowa City, IA 52240, 356-5082
RESOLUTION NO. 17-141
RESOLUTION APPROVING EARLY RELEASE OF FUNDS RETAINED
PURSUANT TO CHAPTER 26 AND CHAPTER 573 FOR THE CITY HALL
LOBBY, REVENUE, HARVAT HALL & NDS RENOVATION PROJECT.
WHEREAS, the City of Iowa City entered into a contract with City Construction Group.
("Contractor") for the City Hall Lobby, Revenue, Harvat Hall & NDS Renovation Project on April
21, 2015; and
WHEREAS, more than 95% of the work under the contract has been completed; and
WHEREAS, pursuant to Iowa Code Chapter 26, Contractor has requested in a sworn statement
early release of funds retained by the City pursuant to Iowa Code Chapter 573; and
WHEREAS, the City's consulting architect has determined that building wayfinding signage
remains to be completed, the value of which is estimated to be $9,097.50; and
WHEREAS, Contractor represents that it gave notice to all known subcontractors and suppliers
as required by Iowa Code section 26.13 prior to making the request to the City; and
WHEREAS, the City is entitled to retain an amount equal to 200% of the value of the labor or
materials yet to be provided pursuant to Iowa Code Chapters 26 and 573; and
WHEREAS, $18,195.00 of the amount due under the contract will continue to be retained for the
payment of claims for materials and labor yet to be provided pursuant to Iowa Code Chapters
26 and 573.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF IOWA CITY CITY COUNCIL that;
The City finds that at least 95% of the work under the contract for the City Hall Lobby,
Revenue, Harvat Hall & NDS Renovation Project has been completed in general
accordance with the terms and provisions of the contract.
2. Pursuant to Iowa Code Sections 26.13(3) and 573.15A, the City intends to reduce the
amount of the retainage from 5% to an amount not less than $18,195.00, by making
payment to Contractor at the time of the next monthly payment or within thirty days after
this Resolution has been passed, whichever is sooner.
Passed and approved this 2nd day of May '20 17
MOOR
Approved by
ATTEST:
CIT RK �— City Attorney's Office
It was moved by sotchway and seconded by Thomas the Resolution be
adopted, and upon roll call there were:
AYES:
X
NAYS:
ABSENT:
Botchway
Cole
x Dickens
Mims
Taylor
Thomas
Throgmorton
r
� QA11
®rm�
CITY OF IOWA CIT
COUNCIL ACTION .REPO 5d(4)
April 25, 2017
Resolution approving early release of funds retained pursuant to Chapter 26 and Chapter
573 for the City Hall Lobby, Revenue, Harvat Hall & NDS Renovation Project
Prepared By: Kumi Morris - Facilities Manager
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Juli Seydell Johnson - Parks and Recreation Director
Geoff Fruin - City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The contractor, City Construction, has completed more than 95% of the work of the City Hall
Lobby, Revenue, Harvat Hall & NDS Renovation Project, and pursuant to Chapter 26 and
Chapter 573, the contractor has requested in a sworn statement the early release of funds
retained by the City pursuant to Iowa Code 573.
Background / Analysis:
The contractor, City Construction, has requested the early release of retainage in a sworn
statement. The work completed to date has reached final completion, with the exception of the
interior building signage, which is forthcoming by the signage contractor.
The Contractor gave notice to all known subcontractors and suppliers as required by Iowa Code
section 26.13, prior to making the request to the City. The contractor has completed more than
95% of the work, and pursuant to Chapter 26 and Chapter 573, the contractor has requested in
a sworn statement the early release of funds retained by the City pursuant to Iowa Code 573.
The City Attorney's office has reviewed the sworn statement from City Construction.
The City is entitled to retain and will hold double the amount (200%) of the value of labor and
material of the remaining work and will not move forward with final acceptance the project until
this last component is completed.
The City's consultant architects, Rohrbach Associates, has determined that the building signage
which remains to be completed, has the value of $9,097.00, and in a letter to the City has
indicated that the release of the requested retainage is appropriate for the work completed.
The City will hold double the value of the signage work, in the amount of $18,195.00
Staff recommends proceeding with approving early release of retainage on May 2, 2017 for the
City Hall Lobby, Revenue, Harvat Hall & NDS Renovation Project.
S�(Si
Prepared by: Bob Miklo, Senior Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5240 (SUB16-00009 &
16-00010)
RESOLUTION NO. 17-142
RESOLUTION APPROVING THE EXTRATERRITORIAL PRELIMINARY AND FINAL PLAT OF
WESTCOTT SECOND ADDITION, JOHNSON COUNTY, IOWA.
WHEREAS, the owner, Robert and Roxanne Mitchell, filed with the City Clerk the preliminary and
final plat of Westcott Second Addition, Johnson County, Iowa; and
WHEREAS, said subdivision is located on the following -described real estate in Johnson County.
Iowa, to wit:
LOT 1, WESTCOTT ADDITION, ACCORDING TO THE PLAT THEREOF
RECORDED IN BOOK 35, PAGE 333, PLAT RECORDS OF JOHNSON
COUNTY, IOWA, AND SUBJECT TO EASEMENTS AND RESTRICTIONS OF
RECORD.
WHEREAS, this property is within the City's extraterritorial review area; and
WHEREAS, the Department of Neighborhood and Development Services and the Public Works
Department examined the proposed preliminary and final plat and subdivision, and recommended
approval; and
WHEREAS, a conditional dedication has been made to the public, and the subdivision has been
made with the free consent and in accordance with the desires of the owners and proprietors; and
WHEREAS, said preliminary and final plat and subdivision are found to conform with Chapter 354,
Code of Iowa (2017) and all other state and local requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The said preliminary and final plat and subdivision located on the above-described real
estate be and the same are hereby approved.
2. The City accepts the conditional dedication of the streets, easements as provided by
agreement and by law.
3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and
directed, upon approval by the City Attorney, to execute all legal documents relating to
said subdivision, and to certify a copy of this resolution, which shall be affixed to the final
plat after passage and approval by law. The City Clerk shall certify and send plat and
supporting documents to the office of Planning and Zoning of Johnson County, Iowa. All
recording expense is the responsibility of the owner/subdivider.
Passed and approved this 2nd day of May , 20 17
Resolution No. 17-i42
Page 2
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AYES: M1 NAYS:
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To: Planning & Zoning Commission
Item: SUB16-00009 & SUB16-00010
Westcott Second Addition
GENERAL INFORMATION:
Applicant:
Contact Person:
Requested Action:
Purpose:
Location:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning:
Comprehensive Plan:
File Date:
45 Day Limitation Period:
BACKGROUND INFORMATION:
STAFF REPORT
Prepared by: Marti Wolf, Planning Intern
Date: April 20, 2017
Robert and Roxanne Mitchell
3028 Westberry Drive NE
Iowa City, IA 52240
(319)541-9575
Glen Meisner
1917 South Gilbert Street
Iowa City, IA 52240
(319)351-8282
Preliminary and Final Plat Approval
3 -lot residential subdivision and resubdivision of Lot
1, Westcott Addition
3055 Prairie du Chien Road NE
9.96 acres
Rural Residential (R)
North: County Residential (R)
South: County Agricultural (A)
East: County Agricultural Residential (AR)
West: County Residential (R)
Johnson County Fringe Area Agreement
March 24, 2017
May 8, 2017
The applicants, Robert and Roxanne Mitchell, have submitted a preliminary plat and final plat for
Westcott Second Addition, a 4 -lot, 9.98 -acre residential subdivision located at 3055 Prairie du
Chien Road NE in Johnson County. The subject property falls in the North Corridor of Fringe Area
A. Because the property is within Iowa City's two-mile Fringe Area, the Fringe Area Agreement
specifies that City approval will be required when the property is subdivided. The property was
rezoned in 2016 from County Agricultural (A) to County Residential (R). There is currently one
single-family dwelling, a barn, and multiple detached storage structures.
The applicant has indicated that they will not be using the Good Neighbor Policy.
ANALYSIS:
Comprehensive Plan: The Fringe Area Agreement, an element of the Comprehensive Plan, is
intended to provide guidance regarding the development of land located within two miles of Iowa
City's corporate limits. The agreement's stated purpose is to provide for orderly and efficient
development patterns appropriate to a non -urbanized area, protect and preserve the fringe area's
natural resources and environmentally sensitive features, direct development to areas with
physical characteristics which can accommodate development, and effectively and economically
provide services for future growth and development.
This property is located beyond Iowa City's growth area and therefore is not likely to be annexed
into the city. Subdivisions outside of the growth area are required to adhere to the City Rural
Design Standards contained in the Fringe Area Agreement. These standards generally conform
to the County zoning and subdivision standards rather than typical City requirements for
infrastructure and lot design. These standards allow for less complete infrastructure and have less
detailed design requirements compared to the City's Subdivision Standards.
City Rural Design Standards:
Streets: No new streets are proposed for this subdivision. Access to lots 1 and 2 will be to
Westcott Drive. Access to Lots 3 and 4 will be to Prairie Du Chien Road. The applicant has
obtained access easements to allow driveways to these streets.
Water and Sewer Treatment: The subdivision will be served by private water wells and septic
systems. The County Health Department will need to approve the water and septic systems for
this subdivision.
Stormwater Management: The subdivision will be required to comply with the County
stormwater management standards. Berms and piping will direct stormwater to a basin
proposed in Outlot B. The City Engineer has reviewed the stormwater management plan and
has approved its application to this development. Any modifications to the plan will require
review and approval of the City Engineer.
Fire Rating: The Fringe Area Agreement requires that the developer's engineer establish a fire
rating and provide a letter from the Fire Protection District approving the fire hydrant system.
The Solon Fire Department has submitted a letter indicating that the subdivision is over 5 miles
away and the ISO rating would be 0 for this location.
Sensitive Areas: This property contains steep slopes and woodlands and is subject Johnson
County's sensitive areas regulations. The City's sensitive areas regulations do not apply to
subdivisions outside of the growth area.
Zoning: The property was rezoned in 2016 from County Agricultural (A) to County Residential (R).
The County Residential zoning allows single family dwellings as a permitted use, with minimum lot
area of 40,000 square feet. Each of the lots conforms to this requirement. The Fringe area
Agreement requires that at least 50% of the property be designated as an outlot for open space
or agriculture. Outlots A, B, and C are designated as open space. Outlot B will also contain
stormwater management facilities.
STAFF RECOMMENDATION:
Staff recommends that SUB16-00009 and SUB16-00010, an application for a preliminary and
PCD\Staff Reportslwestoott addition prelim staff report.doex
final plat of Westcott Second Addition, a 4 -lot, 9.98 -acre residential subdivision located 3055
Prairie Du Chien Road be approved.
ATTACHMENTS:
1. Location Map
2. Preliminary and Final Plat
Approved by:
John Yapp, Development Service
Department of Neighborhood and
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Westcott Second Addition
Prepared By: Marti Wolf
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April 20, 2017 — Formal Meeting
Page 8 of 10
ago and noted that the area is a garden spot that everyone recognizes as a great area in Iowa
City. He added that the Bakery are very good neighbors.
Freerks closed the public hearing.
Theobald moved to approve REZ17-00006 the rezoning from Low Density Single Family
Residential with Historic District Overlay (RS-5/OHD) zone to Neighborhood Commercial
with Historic District Overlay (CN-1/0HD) zone for approximately 3,440 square feet of
property located 812 S. Summit Street subject to a Conditional Zoning Agreement
restricting hours that the business is open to the public to between 7:00 am and 9:00 pm,
and prohibiting the sale of alcohol and tobacco.
Parsons seconded the motion.
Freerks noted that there was a change to the Code some years ago reducing the acreage
needed for this type of commercial to protect these types of small businesses that are integrated
into the community. Freerks believes this is confirmed by the Comprehensive Plan and
supports this rezoning.
Theobald stated she is in support of this rezoning, however it reminded her of a project in her
part of town where it was a rezoning away from neighborhood commercial and it is important to
remember function versus design in neighborhood commercial. Theobald stressed it is
important in all areas where there is a business next to residential to be sensitive to the
neighbors, and added she is pleased to see how well this project achieved that.
A vote was taken and the motion passed 6-0.
DEVELOPMENT ITEM (SUB16-00009/SUB16-00010):
Discussion of an application submitted by Robert & Roxanne Mitchell for a preliminary and final
plat of Westcott Second Addition, a 9.96 -acre, 4 -lot residential subdivision located 3055 Prairie
du Chien Road NE.
Miklo stated this property is located on the west side of Prairie du Chien Road and is within two
miles of Iowa City therefore within the fringe area of which both the County and the City review
subdivisions. The area is beyond what the City anticipates annexing, therefore the Fringe Area
Agreement provides a bit more flexibility in terms of the design of the subdivision and the
standards that apply. Basically the County's Rural Design Standards apply. Miklo showed
images of the site. The property will be divided into four single-family lots, one of which will
contain the existing farm house. 50% of the property in the middle is being set aside as open
space and stormwater management facilities as required by the Fringe Area Agreement.
Freerks asked if that area would be undisturbed then. Miklo said it will be disturbed for the
stormwater basin installation. Additionally per the County's Sensitive Area's Ordinance there is
a limitation to the number of trees they can remove before mitigation is required.
Miklo stated Staff has reviewed the subdivision and it does meet the requirements of the Fringe
Area Agreement, it includes stormwater management that is adequate and will not affect the
City's watershed to the south. The Fringe Area Agreement requires a fire rating and the Solon
Fire Department has submitted a letter indicating a low fire rating.
Planning and Zoning Commission
April 20, 2017 — Formal Meeting
Page 9 of 10
Staff recommends approval of both a preliminary and final plat
Freerks opened the public hearing
Thomas Agran (512 North Van Buren Street) stated he drives out Prairie du Chien frequently
and was disappointed to see this property go up for development but is pleased to see it is
being somewhat sensitive to the context out there. He generally is sensitive to the loss of farm
land, but if development must happen this one seems relatively tame and protective of the
environment.
Freerks closed the public discussion.
Signs moved to approve of sub16-00009/subl6-00010 an application a preliminary and
final plat of Westcott Second Addition, a 9.96 -acre, 4 -lot residential subdivision located
3055 Prairie du Chien Road NE.
Parsons seconded the motion.
Freerks agreed this seems to be a reasonable use of the land and is in favor.
A vote was taken and the motion carried 6-0.
CONSIDERATION OF MEETING MINUTES: APRIL 6, 2017
Theobald moved to approve the meeting minutes of April 6, 2017.
Signs seconded the motion.
A vote was taken and the motion passed 6-0.
PLANNING AND ZONING INFORMATION:
Freerks mentioned the signage for zoning notifications and perhaps Staff could look at what
other communities do.
Hensch mentioned perhaps a QR Code to allow for more information without having to invest
money on detailed signage.
Signs mentioned that he had a friend that went by the Deluxe Bakery sign and stated their
frustration with going to the City's website to find more information regarding the rezoning.
Freerks agreed that the website can be frustrating to find information on.
Hektoen added that the City does require that neighbors 300 feet from the property in question
are notified by mail.
ADJOURNMENT:
Hensch moved to adjourn.
Parsons seconded.
A vote was taken and motion carried 6-0.
Julie
From: Simpson, Jacob D <jacob-simpson@uiowa.edu>
Sent: Wednesday, April 26, 2017 2:58 PM
To: Julie Voparil
Cc: Nelson, Benjamin C, Stewart, Gustave, Sanchez Garcia, Lilian
Subject: UISG Vice City Council Liaison
Hello Julie,
I am the President-elect of the University of Iowa Student Government. I am appointing Gustave Stewart, Cc'd on this email, as
the next Vice City Council Liaison for UISG. Please let me know if you need anything else.
Best,
Jacob
Jacob D. Simpson (helhim/his)
University of Iowa Undergraduate I Economics
President-elect I University of Iowa Student Government
iacob-simpson a),uiowa.edu 1 (563) 503-9681
Z 1 CITY OF IOWA CIT
NW Moot
COUNCIL ACTION REPO 5d�7>
May 2, 2017
Motion authorizing the City Manager to sign estoppel certificates
with respect to parking agreements and the sale of the Sheraton
Hotel
Prepared By: Sue Dulek, Assistant City Attorney
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: None
Executive Summary:
RBD Iowa City LLC, the owner of the Sheraton Hotel, has a purchase agreement to sell the
hotel. The City has two agreements with the owner for hotel guest parking in City ramps. The
owner is requesting that the City sign two documents (estoppel certificates) stating that the
owner is not in default of the agreements. The owner is not in default of either agreement.
Background / Analysis:
None.
CITY OF IOWA CIT 05-02-17
COUNCIL ACTION REPO5e(1)
May 2, 2017
Resolution setting a public hearing on May 16, 2017, on plans, specifications, form of contract,
and estimate of cost for the construction of the 2017 Hebl Avenue Improvements Project, directing
City Clerk to publish notice of said hearing, and directing the City Engineer to place said plans on
file for public inspection.
Prepared By: Daniel Scott, Sr. Civil Engineer
Reviewed By: Jason Havel - City Engineer, Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: $900,000, available in the Hebl Ave Improvements account #L3322
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
The Project includes reconstruction of Hebl Avenue from IWV road to the Landfill and Recycling
Center entrance. The reconstruction of Hebl Avenue will include improving the roadway to full
depth PCC with rock base and paved shoulder to improve the drainage system. A new roadway
culvert will be installed for the creek with new guard rails to improve safety.
Background / Analysis:
Hebl Avenue currently serves as the entrance road to the Landfill and Recycling Center and the
majority of traffic is heavy refuse trucks. The current roadway is a 22' wide rural chip and
sealcoat roadway with roadway ditches on either side for managing storm water runoff. In
addition, the existing creek culvert under Hebl Avenue is in need of repair. MMS Consultants
was hired to design the project and has plans and specifications ready for construction of the
project.
The plans, specifications, form of contract, and estimate of cost for construction of the 2017
Heb] Avenue Improvements Project have been filed in the Office of the City Clerk for public
examination.
The estimated cost of construction is $900,000, and the project is expected to be completed in
2017.
Prepared by: Daniel Scott, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)356-5144
RESOLUTION NO. 17-143
RESOLUTION SETTING A PUBLIC HEARING ON MAY 16, 2017, ON PLANS,
SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR
THE CONSTRUCTION OF THE 2017 HEBL AVENUE IMPROVEMENTS PRO-
JECT, DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING,
AND DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR
PUBLIC INSPECTION.
WHEREAS, funds for this project are available in the Hebl Avenue Improvements
account # L3322.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA:
That a public hearing on the plans, specifications, form of contract, and estimate of cost
for the construction of the above-mentioned project is to be held on the 16th day of May,
2017, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting
is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing
for the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. That the copy of the plans, specifications, form of contract, and estimate of cost for the
construction of the above-named project is hereby ordered placed on file by the City
Engineer in the office of the City Clerk for public inspection.
Passed and approved this 2nd day of May / 20 17
G,
M OR
\` Approved by C�
ATTEST:
CI LERK c City Attorney's Office
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Resolution No. 17-143
Page 2
It was moved by Botchway and seconded by Thomas the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT: ABSTAIN:
x
Botchway
x
Cole
x Dickens
x
Mims
x
Taylor
x
Thomas
x
Throgmorton
r 1 CITY OF IOWA CIT
COUNCIL ACTON REPO 5e(2)
May 16, 2017
Resolution approving a ground lease agreement with
Bread Garden of Iowa City, L.C. for Pedestrian Mall
space adjacent to their downtown location
Prepared By: Geoff Fruin, City Manager
Reviewed By: Eric R. Goers, Asst. City Attorney
Eleanor Dilkes City Attorney
Fiscal Impact: As landlord, the City will earn $9,826.95 per year, escalating every
5 years. All other costs will be borne by the tenant, Bread Garden.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution, Ground Lease
Executive Summary:
This resolution considers a proposed ground lease to Bread Garden of Iowa City, L.C.
of 668.5 square feet of pedestrian mall space immediately to the north of their location.
The area is roughly the same area previously utilized as sidewalk caf6 space. This
proposed lease is for twenty years. The lease rate is $14.70 per square foot ($9,826.95
per year), and escalates with CPI every five years. It is a triple net lease, with Bread
Garden to pay for everything associated with the project. Bread Garden intends to build
a semi-permanent structure to allow patrons to dine there throughout the year during
periods of inclement weather.
Background / Analysis:
The popularity of open-air dining options continues to grow in Iowa City. Over the past
several years the City has expanded use of sidewalk cafes, planter cafes and street
cafes. The City has also received more inquiries and building permit applications for
open-air opportunities on rooftops and on ground level privately owned properties
(defined as outdoor service areas in the City Code). The rise in popularity of these
spaces has helped create a vibrant street atmosphere in downtown Iowa City, which is
increasingly appealing to a broader segment of our population and the visiting public.
Iowa City requires that sidewalk cafes be removed between December 15` and the end
of February. This is done to facilitate more efficient snow removal operations during the
winter. Businesses leasing these spaces pay an annual fee for the nine months that
they use the public space. Planter cafes do not impede snow removal operations and
thus can stay up through the winter season, although for all practical purposes they
close due to the weather.
'r CITY OF IOWA CITY
-r� COUNCIL ACTION REPORT
The Bread Garden currently operates a sidewalk cafe on public property that transitions
seamlessly into their private four season dining area. Last year, the Bread Garden
inquired if the City would consider allowing them to extend their existing four season
dining structure over the area they have historically used as a sidewalk cafe. By doing
so the Bread Garden could offer a similar open air dining experience three extra months
per year as the seating would be covered and enclosed on four sides during the winter
months. Because of the significant upfront capital expense to build a new structure over
the seating area, the Bread Garden would require a twenty-year lease commitment and
also would be willing to pay a significantly higher lease rate compared to their existing
sidewalk cafe fee.
In considering this request, multiple factors need to be considered. First and most
importantly, one needs to consider whether the extension of a private structure over
public property would be a detriment or enhancement to the public's use of the
surrounding area. In this specific case, I believe the extension of the covered open-air
seating would enhance the public's enjoyment of the space without interfering with
anyone's use of the surrounding space.
• The space in question is the same area that the business has historically used
for their sidewalk cafe. Thus, the space is already exclusively utilized by the
business for nine months of the year. Staff has not received anything but positive
feedback on the Bread Garden's use of this space over the last several years.
• The extension of a structure over this area will not impede the pedestrian
movement or the critical viewshed into or out of the Ped Mall. This segment of
the Ped Mall is quite unique in that regardless of the existence of sidewalk cafes,
the vast majority of pedestrians naturally move through the central part of the
Mall between the line of trees and the Library/Children's Garden and playground.
When cafes are not operational, few people will routinely utilize the space
between the trees and the southern businesses (including Bread Garden) unless
they intend to access those businesses.
• The structure does not impose additional public safety risks or require a detour of
the Fire Department travel lane that currently exists in the Ped Mall.
• The structure will not detract from any nearby historic structures.
• The Bread Garden will assume responsibility for the upkeep of public property
that they occupy as well the immediate remedy of any drainage or snow/ice
accumulation around the structure.
A second consideration is how the addition of a structure over this space will impact the
aesthetics of the Ped Mall. The City has design review authority over the structure. It is
critical that any structure not deaden or otherwise detract from the vibrancy of the street
level. Thus, the interconnection of the structure to the existing building is critical. If the
structure were to be viewed as more of an unplanned appendage to a building simply to
'r 1 CITY OF IOWA CITY
-r� COUNCIL ACTION REPORT
hold more patrons it would drag down the broader appeal of the block. In this case the
new structure will connect seamlessly to the Bread Garden's existing four season
outdoor dining area and I believe it should naturally flow and integrate well into the Ped
Mall.
Lastly, one needs to consider what other types of requests the City may receive that are
similar in nature. The City is under no obligation to extend similar arrangements to other
businesses. If inquiries were received, one would need to give critical thought to
pedestrian traffic patterns, viewsheds, the public uses of the surrounding space, public
safety and other city operations including snow removal, visual impact on historic
properties, and the aesthetics of the corridor and how any proposed structure naturally
integrates into the building and the Ped Mall. In thinking about these criteria, it would be
difficult to imagine another scenario on the Ped Mall that works as well as the one being
proposed by the Bread Garden (the Ped Mall is technically not ROW and the only area
downtown where the City could grant a permanent interest such as this 20 year lease in
property dedicated to vehicular and pedestrian movement.)
The $14.70 per square foot initial lease rate was derived from an analysis of
comparable sales in the downtown area. In comparison, the City's sidewalk cafe fee is
$5.00 per square foot. Over the twenty-year lease period, the agreement is projected to
bring in over $200,000 in lease revenue to the City. While important, I do not believe the
revenue should be a determining factor as the impact on the public space is the most
critical decision point. The Bread Garden will assume all costs and liability for the
publicly -owned space that they will lease.
I believe the proposed agreement presents a great opportunity for the City and Bread
Garden to work together to bring more people to the downtown throughout all months of
the year and, at the same time, enhance the attractiveness of the surrounding space in
a manner that does not harm or inhibit one's use of the space.
Prepared by: Eric R. Goers, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 17-144
RESOLUTION SETTING A PUBLIC HEARING FOR MAY 16TH TO CONSIDER A GROUND
LEASE AGREEMENT WITH BREAD GARDEN OF IOWA CITY, L.C. FOR PED MALL SPACE
ADJACENT TO THEIR DOWNTOWN LOCATION.
WHEREAS, Bread Garden of Iowa City, L.C. wishes to lease approximately 668.5 square feet of
pedestrian mall space adjacent to their Bread Garden Market for twenty years to enable them to
construct a "greenhouse" structure to serve patrons of the market year-round; and
WHEREAS, staff has negotiated a lease agreement including an annual lease rate of $14.70 per
square foot, for an initial annual lease of $9,826.95, which would be adjusted for inflation every
five years; and
WHEREAS, the lease agreement and site plan approval process will ensure that City interests in
the pedestrian mall are protected; and
WHEREAS, a lease of this period of time requires the holding of a public hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IOWA CITY, IOWA, THAT:
1. The City of Iowa City does hereby declare its intent to enter into the above -referenced lease
agreement.
2. A public hearing on said proposed lease agreement should be and is hereby set for May 16,
2017 at 7:00 p.m. in Emma Harvat Hall, City Hall, 410 E. Washington Street, Iowa City, Iowa,
or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by
the City Clerk. The City Clerk is hereby directed to cause Notice of Public Hearing to be
published as provided by law.
Passed and approved this 2nd day of May 2017.
M OR
Approved by (�
ATTEST:
CI LERK City Attorney's Office
Resolution No. 17-144
Page 2
It was moved by Botchway and seconded by Thomas the
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
x
x
X
x
x
x
ABSENT:
x
ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
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Prepared by: Kumi Moms, Parks & Recreation, 220 S. Gilbert Street, Iowa City, IA 52240 (319) 356-5082
RESOLUTION NO. 17-145
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF
AGREEMENT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE
CABIN PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO
ACCOMPANY EACH BID, DIRECTING CITY CLERK TO POST NOTICE TO
BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS.
WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
WHEREAS, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
WHEREAS, funds for this project are available in the Parks and Recreation City Park Cabin
Restoration CIP account #R4187.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 13th day of June,
2017. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 20 day of June, 2017, or at a special meeting called for that
purpose.
Passed and approved this 2nd day of May, 2017.
MOOR
Approved by
ATTEST:_\�!�-.��1
CITY CtERK a� City Attorney's Office
S..C. WBNIdlr a Fadlitl. Mmugem P.iep JCily Park Cabin Rm M.. PmJa .Maneeab bM d.p W.W.W J. 201Me 100 to Approve Plant& Spa¢lor CITY PMI(
CHIN RESTORATION PROJECT 0 02 2012- reM.dac
Resolution No.
Page p
It was moved by Botchwav and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x
x
x
x
ABSENT:
X
►:vl;3rIIua
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
7T
I
Prepared by: Jason Reichart, Civil Engineer, 410 E. Washington St., Iowa City, IA 52240, (319)356-5416
RESOLUTION NO. 17-146
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF
AGREEMENT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE
BURLINGTON CLINTON STREET INTERSECTION IMPROVEMENTS
PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY
EACH BID, DIRECTING CITY CLERK TO POST NOTICE TO BIDDERS, AND
FIXING TIME AND PLACE FOR RECEIPT OF BIDS.
WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
WHEREAS, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
WHEREAS, funds for this project are available in the Burlington/Clinton Intersection Imp account
# 33840.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 2:00 p.m. on the 2nd day of June,
2017. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 20th day of June, 2017, or at a special meeting called for that
purpose.
Passed and approved this 2nd day of May 120 17
M OR
\ o Approved by
ATTEST: SA O 0_ 64, o ,
CI ERK City Attorney's f3iffice l
pweng stersvesappp&s.doc 4/17 ZIO I
Resolution No. 17-146
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS
X
_x
x
x
x
x
ABSENT:
X
ABSTAIN:
Thomas
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
Prepared by: Ben Clark, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5436
RESOLUTION NO. 17-147
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF
AGREEMENT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE
RIVERFRONT CROSSINGS PARK, PHASE 1 PROJECT, ESTABLISHING
AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY
CLERK TO POST NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR
RECEIPT OF BIDS.
WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
WHEREAS, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
WHEREAS, funds for this project are available in the Park at Site of North WWT Plant account
#R4185 and North Wastewater Plant Demolition account #V3142.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY. IOWA THAT:
The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 30th day of May,
2017. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 6`h day of June, 2017, or at a special meeting called for that
purpose.
Passed and approved this 2nd day of
ATTEST:
DEP05CITY CLERK
May / 20 17
L,
M OR
Ap ved
�d6 ��-
City Attorney's Office
/O.
Resolution No. 17-147
Page 2
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x
x
x
x
ABSENT:
x
ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Prepared by: Dave Panos, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 35&5145
RESOLUTION NO. 17-148
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF
AGREEMENT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE
DAVENPORT BRICK STREET RECONSTRUCTION PROJECT, AUTHORIZING
EXECUTION OF A TEMPORARY CONSTRUCTION EASEMENT AGREEMENT
WITH THE UNIVERSITY OF IOWA, ESTABLISHING AMOUNT OF BID
SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO POST
NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF
BIDS.
WHEREAS, notice of public hearing on the plans, specifications, form of contract and estimate of
cost for the above-named project was published as required by law, and the hearing thereon held;
and
WHEREAS, a Temporary Construction Easement between the University of Iowa and City of Iowa
City has been negotiated for the purpose of reconstructing curb ramps within the project corridor
on University property to ADA compliance; and
WHEREAS, the reconstruction of curb ramps as referenced herein will mutually benefit the
University of Iowa and City of Iowa City as a part of the project; and WHEREAS, the City Engineer
or designee intends to post notice of the project on the website owned and maintained by the City
of Iowa City; and
WHEREAS, funds for this project are available in the Davenport Brick Street
Reconstruction account # S3850.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
1. The plans, specifications, form of contract and estimate of cost for the above-named
project are hereby approved.
2. The amount of bid security to accompany each bid for the construction of the above-
named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer,
City of Iowa City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builder of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 20 day of May,
2017. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 7:00 p.m. on the 6th day of June, 2017, or at a special meeting called for that
purpose.
Resolution No. 17-148
Page 2
5. The Mayor and City Clerk are hereby authorized to execute and attest a temporary
construction easement agreement with the University of Iowa to facilitate construction of this
project.
Passed and approved this 2nd day of May 2 17
71
MAIYOR
Approved by
ATTEST: ,�� o 04 . Q Gvt u J nr�fd G{azez_
CI RK City Attorney's Office `//I
Resolution No. 17-148
Page 3
It was moved by Mims and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
x
x
x
x
x
x
ABSENT:
x
ABSTAIN:
Botchway
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
)2,
Prepared by: Brad Neumann, Asst. Transp. Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5235
RESOLUTION NO. 17-14
RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE
IOWA DEPARTMENT OF TRANSPORTATION FOR FY2018 IOWA DOT STATE
TRANSIT ASSISTANCE AND FEDERAL TRANSIT ADMINISTRATION
FUNDING.
WHEREAS, the City of Iowa City, Iowa has undertaken to provide its residents with a public
transportation system; and
WHEREAS, the Iowa Department of Transportation offers financial assistance to local
governmental units for their public transportation systems; and
WHEREAS, this is an annual process that Iowa City undertakes, outlining federal funds
requested for operating and capital expenses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
We, hereby, authorize the City Manager, on behalf of the City of Iowa City, to apply for financial
assistance as noted below and to enter into related contract(s) with the Iowa Department of
Transportation.
From the State Transit Assistance Program:
3.371213% (approximately $486,265) of Formula Funds
From federal operating assistance for transit:
$1,622,763;
From federal funds for transit in non -urbanized areas and/or for transit serving primarily
elderly persons and person with disabilities:
$112,493;
From state-wide federal capital assistance for transit:
$16,361,900; and
We understand acceptance of federal transit assistance involves an agreement to comply with
certain labor protection provisions.
We certify that the City of Iowa City has sufficient non-federal funds to provide required local
match for capital projects and at time of delivery will have the funds to operate and maintain
vehicles and equipment purchased under this project.
We request the State Transit Assistance formula funding be advanced monthly as allowed by law,
to improve transit system cash flow.
Resolution No. 17-149
Page 2
Passed and approved this 2nd day of
C
M OR
ATTEST: �Ve
/ CITK� RK
It was moved by _ sotchway and seconded by
adopted, and upon roll call there were:
AYES: NAYS:
x
x
Jccogtp/res/sta-app-12.dx
20 17
A oved by
City Attorney's Office
Thomas the Resolution be
Botchway II
Cole
x Dickens
Mims
Taylor
Thomas
Throgmorton
r�( !b 4
Publish 4/22
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Iowa City, State
of Iowa, hereafter described, must be received at the office of the Finance Director, City Hall,
410 E. Washington, Iowa City, Iowa 52440 (the "Issuer") as indicated below on the 2nd day of
May, 2017. The bids will then be publicly opened and referred for action to the meeting of the
City Council in conformity with the TERMS OF OFFERING.
The Bonds: The Bonds to be offered are the following:
Before 10:00 a.m. GENERAL OBLIGATION BONDS, SERIES 2017A, in
the amount of $9,765,000)*, to be dated June 15, 2017.
Before 10:30 a.m. SEWER REVENUE REFUNDING BONDS,
SERIES 2017B, in the amount of $5,235,000*,
to be dated June 15, 2017.
Before 11:00 a.m. WATER REVENUE BONDS, SERIES 2017C, in the
amount of $5,910,000*, to be dated June 15, 2017.
(collectively, the "Bonds")
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the
following methods:
• Sealed Bidding: Sealed bids may be submitted and will be received at the office
of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440.
• Electronic Internet Bidding: Electronic intemet bids will be received at the office
of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440.
The bids must be submitted through the SPEERAUCTION competitive bidding
system.
• Electronic Facsimile Bidding: Electronic facsimile bids will be received at the
office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa
52440 (facsimile number: 319-356-5009). Electronic facsimile bids will be
treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and announced. Finally,
electronic intemet bids will be accessed and announced.
Sale and Award: The sale and award of the Bonds will be held at the Emma J. Harvat
Hall, City Hall, 410 E. Washington, Iowa City, Iowa at a meeting of the City Council on the
above date at 7:00 P.M.
Official Statements: The Issuer has issued Official Statements of information pertaining
to the Bonds to be offered, including a statement of the Terms of Offering and Official Bid
Forms, which are incorporated by reference as a part of this notice. The Official Statements may
be obtained by request addressed to the City Clerk, City Hall, 410 E. Washington, Iowa City,
Iowa 52440; Telephone: 319-356-5010 or the Issuer's Municipal Advisor, Speer Financial, 531
Commercial Street, Waterloo, Iowa, 50703; Telephone: 319-291-2077 and One North LaSalle
Street, Suite 4100, Chicago, Illinois 60602; Telephone: 312-346-3700.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accordance with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Iowa City, State of Iowa.
Julie Voparil
Deputy City Clerk, City of Iowa City, State of
Iowa
iL�
May 2, 2017
The Finance Director of the City of Iowa City, State of Iowa, met in the City Hall, 410 E.
Washington, Iowa City, Iowa, at 10:00 A.M., on the above date, to open sealed bids received,
access electronic bids and to refer the sale of the Bonds to the best and most favorable bidder for
cash, subject to approval by the City Council at 7:00 P.M. on the above date.
The following persons were present:
Dennis Bockenstedt, Larry Burger - Speer Financial
This being the time and place for the opening of bids for the sale of $9,765,000 (Subject
to Adjustment per Terms of Offering) General Obligation Bonds, Series 2017A, the meeting was
opened for the receipt of bids for the Bonds. The following actions were taken:
Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:
(Attach List of Bidders)
2. The Finance Director then declared the time for filing of sealed bids to be closed and that
the sealed bids be opened. The sealed bids were opened and announced.
-2-
Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
(Attach List of Bidders)
Robert W. Baird & Co. Milwaukee, WI
Morgan Stanley New York, NY
4. The best bid was determined to be as follows:
Name & Address of Bidder: Robert W Baird Co.of-Xilxaukee, WT
True hiterest Rate (as -bid): 1.981766 %
Net Interest Cost (as -bid): $ 1,102, 630.89
In consultation with the Municipal Advisor, the City considered the adjustment of the
aggregate principal amount of the Bonds and each scheduled maturity thereof in accordance with
the Terms of Offering and the following actions were taken:
Final Par Amount as adjusted: $9 765.000 00
Purchase Price as adjusted: $ 9 , 885 ,083.35
All bids were then referred to the Council for action.
-3-
Uff'Speer Financial, Inc.
INDEPENDENT MUNICIPAL ADVISORS O ESTABLISHED 1954
SUITE 608 i 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319)291-2077* FAX (319) 291-8628
Bidders*
Robert W. Baird & Co.
Milwaukee, Wisconsin
Investment Rating:
Moody's Investors Service... Aaa
$9,765,000
CITY OF IOWA CITY
Johnson County, Iowa
General Obligation Bonds, Series 2017A
Date of Sale: May 2, 2017
Average Life: 5.638 Years
(Based on TIC)
Price
101.229%
$9,885,083.35
In association with:
C.L. King & Associates
Edward Jones
Fidelity Capital Markets
Ross, Sinclaire & Associates, Inc.
SAMCO Capital Markets
Vining -Sparks IBG, Limited Partnership
Bernardi Securities, Inc.
SumRidge Partners
Country Club Bank
Loop Capital Markets
D.A. Davidson & Co.
Fust Empire Securities
Wedbush Securities, Inc.
Rafferty Capital Markets
FMS Bonds, Inc.
Isaak Bond Investments, Inc.
Maturities
2018-2024
2025
2026-2027
Alamo Capital WMBE
Dougherty LLC
Crews & Associates, Inc.
WNJ Capital
Davenport & Co. LLC
Duncan -Williams, Inc.
Oppenheimer & Co.
R.Seelaus & Company, Inc.
Northland Securities, Inc.
Wayne Hummer & Co.
Sierra Pacific Securities
RBC Capital Markets
IFS Securities
Midland Securities
First Kentucky Securities Corp.
Rates
2.000%
2.250%
2.500%
Morgan Stanley 105.040% 2018-2027 3.000%
New York, New York $10,257,169.88
*Syndicate information isprovided by the underwriter. The information contained in this report is the most current available.
True
Interest**
1.9817%
$1,102,631
2.0356%
$1,159,338
* *The true interest rate reflects the time value ofmonev where dollars spent in eariv vears have a Qreater weight than dollars spent in later vears.
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00
P.M., on the above date. There were present Mayor Throgmorton , in the chair, and the
following named Council Members:
Botchway, Cole, Mims, Taylor, Thomas, Throgmorton
Absent: Dickens
Vacant:
Council Member Mims introduced the following Resolution entitled
"RESOLUTION DIRECTING SALE OF $9_„765,000 GENERAL
OBLIGATION BONDS, SERIES 2017A," and moved its adoption. Council Member
Botchway seconded the motion to adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims
r, Thomas, ThroQmorton
NAYS: None
ABSENT: Dickens
Whereupon, the Mayor declared the following Resolution duly adopted:
Resolution No 17-150
RESOLUTION DIRECTING SALE OF $ 9,765,000
GENERAL OBLIGATION BONDS, SERIES 2017A
WHEREAS, bids have been received for the Bonds described as follows and the best bid
received (with permitted adjustments, if any) is determined to be the following:
$ 9,765,000 GENERAL OBLIGATION BONDS,
SERIES 2017A
Bidder:Robert W. Baird & Co. of Milwaukee, WI
The terns of award:
Final Par Amount as adjusted: $ 9,765,000
Purchase Price as adjusted: $ 9,885,083.35
True Interest Rate: 1.981766 %
Net Interest Cost: $ 1,102 , 630.89
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That the bid for the Bonds as above set out is hereby determined to be the best
and most favorable bid received and, the Bonds are hereby awarded as described above.
-5-
Section 2. That the statement of information for Bond bidders and the form of contract
for the sale of the Bonds are hereby approved and the Mayor and Clerk are authorized to execute
the same on behalf of the City.
Section 3. That the notice of the sale of the Bonds heretofore given and all acts of the
Clerk and Finance Director done in furtherance of the sale of the Bonds are hereby ratified and
approved.
PASSED AND APPROVED this 2nd day of May, 2017.
v .
Myyor
ATTEST:
City
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
May , 2017. \\
V �
Cit ler City oP Iowa City, State of Io
(SEAL)
01352490-1\10714-126
i t ICITY O F 1 O WA CIT 05-02.17
�r COUNCIL ACTION REPOR 1-91
May 2, 2017
Resolutions for the Issuance of 2017 General Obligation Bonds
and 2017 Sewer & Water Revenue Bonds
Prepared By:
Dennis Bockenstedt, Finance Director
Reviewed By:
Simon Andrew, Assistant to the City Manager
Fiscal Impact:
Adopted as part of the FY2017 Budget and 2017-2021 Capital
Improvement Program
Includes Sewer and Water refundings with savings of approximately
$389,000 and $299,000 (net present value over the next eight years),
respectively. Calling the 2009C General Obligation Capital Loan Notes
will result in a savings of approximately $90,000.
Recommendations:
Staff: Approval
Commission: N/A
Attachments:
Resolutions directing sale of the 2017A General Obligation Bonds, 2017B
Sewer Revenue Refunding Bonds & 2017C Water Revenue Bonds;
Resolutions authorizing the redemption of the 2009C General Obligation
Capital Loan Notes, 2009A Sewer Revenue Refunding Capital Loan
Notes & 2009B Water Revenue Refunding Capital Loan Notes.
Executive Summary:
There are six separate resolutions for the issuance of the 2017A General Obligation Bonds, the
2017B Sewer Revenue and 2017C Water Revenue Bonds to be considered by the City Council
following bond bid openings on May 2nd.
Each issue: (General Obligation, Sewer Revenue and Water Revenue) has two resolutions.
The first resolution directs the sale of the 2017 Bonds and is followed by a redemption
resolution to call the 2009 Capital Loan Notes.
Background / Analysis:
The City issues bonds every spring to fund the current year's capital improvement projects listed
in the Five -Year Capital Improvement Program. The City Council adopted the 2017 Capital
Improvement Program on March 7, 2017. The City issues refunding bonds when it is able to
save money by replacing high interest rate bonds with lower interest rate bonds.
The resolution directing sale of the 2017A General Obligation Bond issue is for
$9,765,000(amount subject to change) for projects totaling $9,630,480. Net savings by calling
the 2009C General Obligation Capital Loan Notes early is $90,600.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
The resolution directing sale of the 20178 Sewer Revenue Refunding Bonds is for
$5,235,000(amount subject to change). These bonds will refund the 2009A Sewer Revenue
Refunding Capital Loan Notes. The net present value savings on the sewer revenue refunding
is estimated to be 7.43% or $388,869 over the next eight years.
The resolution directing sale of the 2017C Water Revenue Bonds is for $5,910,000(amount
subject to change). These bonds will refund the 2009B Water Revenue Refunding Capital Loan
Notes on July 1, 2017 and will also fund two water capital improvement projects totaling
$500,000. The net present value savings on the water revenue refunding is estimated to be
5.50% or $298,846 over the next eight years. The two capital improvement projects being
funded are the water plant roof replacement for $400,000 and the water distribution building
repairs for $100,000. The water distribution building repairs project replaced the water
distribution pressure zoning improvements project of $500,000 for revenue bond funding due to
the timing of the pressure zoning improvements.
City of Iowa City, Iowa
2017 GO Bond Issue Timetable
Date
Time
Action
Responsible Party
February 17, 2017
e:00am
Review outstanding bond issues for refunding opportunities
Maggie/Larry
April 21, 2017
9:OOam
Review bond issue timetable; initiate preparation of POS
Dennis/Maggie/Larry
March 8, 2017
S:OOpm
Finalize projects for 2017 GO bond Issues
Dennis
Begin project review for 2017 GO bond issues
Dennis/Mark
March 15, 2017
S:OOpm
Issue preliminary amortization schedules and sale details
Maggie/Larry
March 24, 2017
S:OOpm
Provide Resolutions Fixing Hearings and Notices of Bond Sale on
provided
Mark
May 2, 2017
7:OOpm
Proposed Bond Issues
Dennis
April 4, 2017
7:00pm
Approve Resolution(s) Fixing Hearings and Notices of Bond Sale
May 5, 2017
1:OOpm
on Proposed Bond Issues
Dennis
April S, 2017
I1:OOam
Initiate new paying agent agreement with US Bank
Dennis/Diane
April 7, 2017
B:OOam
Publish Public Hearing Notices
Manan
April 7, 2017
S:OOpm
Provide resolutions 1) directing advertisement for sale, and 2)
approving electronic bidding procedures
Mark
April 11, 2017
10:00am
Moody's bond rating presentation
Dennis/Maggie/Larry
April 18, 2017
7:OOpm
Hold Public Hearings)
Dennis
April 18, 2017 7:OOpm Approve Resolution(s) Directing Advertisement for sale of bonds Dennis
and Electronic Bidding Procedures
April 19, 2017 9:OOam Preliminary Official Statement issued Maggie/Larry
Apr1120, 2017 10:00am
Preliminary Official Statement placed in City Council info packet Dennis/Marian
April 20, 2017
11:OOam
Moody's bond rating issued
Dennis/Maggie/Larry
April 21, 2017
B:OOam
Publish Notices of Bond Sale
Marian
April 21, 2017
9:OOam
Receive signed paying agent agreement from US Bank
Dennis/Diane
April 21, 2017
2:O0pm
Preliminary Resolutions Directing Sale of Bonds and Approving
Paying Agent Agreement provided
Mark
May 2,2017
10:OOam
Receipt of bids
Dennis/Maggie/Larry
May 2, 2017
2:OOpm
Final Resolutions Directing Sale and Approving Paying Agent are
provided
Mark
May 2, 2017
7:OOpm
Approve Resolution(s) Directing Sale of Bonds and call notices (if
Dennis
applicable(
May 5, 2017
1:OOpm
Final Resolution Approving Tax Exemption Cert, Continuing
Mark
Disclosure Cert, and Authorizing Issuance of Bonds provided
May 16, 2017 7:OOpm Approve Resolution(s) Authorizing Issuance of Bonds, Dennis
Tax Exemption Certificate, Continuing Disclosure Certificate, and
Approving Paying Agent Agreement
June 15, 2017 9:OOam Close bond sale and deliver funds Dennis/Mark/ Maggie/Larry
Issue IRS Form 8038G
Bald = City Council actions
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at
7: 00 P .M., on the above date. There were present Mayor ThroRmorton , in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Taylor, Thomas, Throgmorton
Absent: Dickens
Vacant: None
-1-
K
Council Member Mims introduced the following Resolution entitled
"RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL
OBLIGATION CAPITAL LOAN NOTES, SERIES 2009C, OF THE CITY OF IOWA CITY,
STATE OF IOWA, DATED JUNE 8, 2009, AND DIRECTING NOTICE BE GIVEN" and
moved its adoption. Council Member Botchway seconded the motion to adopt. The
roll was called and the vote was,
AYES: Botchway, Cole, Mims
Taylor, Thomas, Throgmorton
NAYS:
ABSENT: Dickens
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No 17-151
RESOLUTION AUTHORIZING THE REDEMPTION OF
OUTSTANDING GENERAL OBLIGATION CAPITAL LOAN
NOTES, SERIES 2009C, OF THE CITY OF IOWA CITY,
STATE OF IOWA, DATED JUNE 8, 2009, AND DIRECTING
NOTICE BE GIVEN
WHEREAS, the City did by resolution dated May 19, 2009, authorize the issuance of
$6,685,000 General Obligation Capital Loan Notes, Series 2009C, (the "Notes") dated June 8,
2009; and
WHEREAS, the Notes are redeemable in any order of their numbering on June 1, 2017 or
any date thereafter upon giving notice in the manner provided in the resolution authorizing the
issuance of the Notes; and
WHEREAS, it is deemed necessary and advisable that $1,500,000 be so redeemed on
June 1, 2017 and notice of redemption be given according to the terms of the resolution
authorizing issuance of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That outstanding General Obligation Capital Loan Notes, dated June 8, 2009,
in the principal amount of $1,500,000, be and the same are hereby redeemed as of June 1, 2017.
Section 2. The Council hereby ratifies action taken by U.S. Bank National Association, in
its capacity as Registrar and Paying Agent of the Notes, causing notice of such redemption be
given prior to the redemption date and causing notice of redemption to be mailed to the
-2-
registered owners of the Notes by ordinary mail, and to notify DTC and EMMA (via searchable
PDF electronic filing).
Section 3. The Finance Director is hereby authorized and directed to cause to be
deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed
Notes to the date of redemption and to notify the City's dissemination agent to post the Notice of
Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Notes
in accordance with the Continuing Disclosure Certificate for the Notes.
Section 4. That the form of such notice be substantially as follows:
-3-
NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE
FOLLOWING DESCRIBED NOTES:
Please take notice that the Notes described below have been called for redemption.
Owners of the Notes should present their Notes for payment on the redemption date.
Issuer: City of Iowa City, State of Iowa
Original Issue Amount: $6,685,000
Note Issue: General Obligation Capital Loan Notes, Series 2009C
Dated Date: June 8, 2009
Redemption Date: June 1, 2017
Redemption Price: At par, plus accrued interest
Notes Called for Redemption
CUSIP
Principal
Interest
Maturity
Numbers
Amount
Rate
Date
462308 YG6
$735,000
4.00%
June 1, 2018
462308 YH4
$765,000
4.00%
June 1, 2019
No representation is made as to the accuracy of the CUSIP numbers printed herein or on
the Notes.
The above Notes should be presented to U.S. Bank National Association, St. Paul,
Minnesota. This represents a full call of the outstanding obligations. All interest will cease to
accrue on the Redemption Date.
U.S. BANK NATIONAL ASSOCIATION
St. Paul, Minnesota
Registrar
(End of Notice)
0
PASSED AND APPROVED this 2nd day of May, 2017.
ATTEST:
i
X
City
-5-
yor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
[ay 2017.
City C City of Iowa City, State of Io
(SEAL)
01352490-1\10714-126
I�
May 2, 2017
The Finance Director of the City of Iowa City, State of Iowa, met in the City Hall, 410 E.
Washington, Iowa City, Iowa, at 10:30 A.M., on the above date, to open sealed bids received,
access electronic bids and to refer the sale of the Bonds to the best and most favorable bidder for
cash, subject to approval by the City Council at 7:00 P.M. on the above date.
The following persons were present:
Dennis Bockenstedt, Larry Burger - Speer Financial
-I-
This being the time and place for the opening of bids for the sale of $5,235,000 (Subject
to Adjustment per Terms of Offering) Sewer Revenue Refunding Bonds, Series 2017B, the
meeting was opened for the receipt of bids for the Bonds. The following actions were taken:
Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:
(Attach List of Bidders)
2. The Finance Director then declared the time for filing of sealed bids to be closed and that
the sealed bids be opened. The sealed bids were opened and announced.
-2-
3. Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
(Attach List of Bidders)
Robert W. Baird & Co. Milwaukee, WI
Morgan Stanley New York, NY
4. The best bid was determined to be as follows:
Name & Address of Bidder: Robert W. Baird & Co. of Milwaukee WI
True Interest Rate (as -bid): 1.5652
Net Interest Cost (as -bid): $ 281, 376
In consultation with the Municipal Advisor, the City considered the adjustment of the
aggregate principal amount of the Bonds and each scheduled maturity thereof in accordance with
the Terms of Offering and the following actions were taken:
Final Par Amount as adjusted: $ 4,550,000
Purchase Price as adjusted: $5,130,631.59
All bids were then referred to the Council for action.
-3-
Speer Financial, Inca
INDEPENDENT MUNICIPAL ADVISORS e ESTABLISHED 1954
SUITE 608 a 531 COMMERCIAL STREET a WATERLOO, IOWA 50701 a (319) 291-2077 a FAX (319) 291-8628
Investment Rating:
Moody's Investors Service ... Aa2
$4,550,000
CITY OF IOWA CITY
Johnson County, Iowa
Sewer Revenue Refunding Bonds, Series 2017B
Date of Sale: May 2, 2017
Average Life: 3.914 Years
(Based on TIC)
Bidders* Price Maturities
Robert W. Baird & Co. 113.202% 2018
Milwaukee Wisconsin $5,926,171.50 2019-2022
(Original)
112.761%
$5,130,631.59
(Revised)
In association with:
C.L. King & Associates
Edward Jones
Fidelity Capital Markets
Ross, Sinclaire & Associates, Inc.
SAMCO Capital Markets
Vining -Sparks IBG, Limited Partnership
Bernardi Securities, Inc.
SumRidge Partners
Country Club Bank
Loop Capital Markets
D.A. Davidson & Co.
First Empire Securities
Wedbush Securities, Inc.
Rafferty Capital Markets
FMS Bonds, Inc.
Isaak Bond Investments, Inc.
Morgan Stanley
New York, New York
Alamo Capital WMBE
Dougherty & Company LLC
Crews & Associates, Inc.
WNJ Capital
Davenport & Co. LLC
Duncan -Williams, Inc.
Oppenheimer & Co.
R.Seelaus & Company, Inc.
Northland Securities, Inc.
Wayne Hummer & Co.
Sierra Pacific Securities
Commerce Bank, N.A.
IFS Securities
Midland Securities
First Kentucky Securities Corp.
True
Rates Interest**
2.000% 1.5794%
5.000% $363,345
(Original)
1.5652%
$281,376
(Revised)
112.876% 2018-2022 5.000% 1.6952%
$5,909,098.61 $389,035
'Syndicate information is provided by the underwriter. The information contained in this report is the most current available.
"The winning bid was adjusted to reflect the new mount of $4,550,000. All other bids were based on the pre -sale amount of $5,235, 000.
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00
P.M., on the above date. There were present Mayor Throgmorton , in the chair, and the
following named Council Members:
Botchway, Cole, Mims Taylor Thomas Thro morton
Absent:
Vacant: None
Council Member Thomas introduced the following Resolution entitled
"RESOLUTION DIRECTING SALE OF $ 4,550,000 SEWER REVENUE
REFUNDING BONDS, SERIES 2017B," and moved its adoption. Council Member
Botchway seconded the motion to adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims
Taylor, Thomas, Throgmorton
NAYS: None
ABSENT: Dickens
Whereupon, the Mayor declared the following Resolution duly adopted:
Resolution No 17-152
RESOLUTION DIRECTING SALE OF $4,550,000
SEWER REVENUE REFUNDING BONDS, SERIES 2017B
WHEREAS, bids have been received for the Bonds described as follows and the best bid
received (with permitted adjustments, if any) is determined to be the following:
$ 4.550 000 SEWER REVENUE REFUNDING
BONDS, SERIES 2017B
Bidder: Robert W. Baird & Co.
The terms of award:
of Milwaukee, WI
Final Par Amount as adjusted: $ 4,550,000
Purchase Price as adjusted: $ 5,130,631.59
True Interest Rate: 1.5652 oda
Net Interest Cost: $ 281.376
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That the bid for the Bonds as above set out is hereby determined to be the best
and most favorable bid received and, the Bonds are hereby awarded as described above.
-5-
Section 2. That the statement of information for Bond bidders and the form of contract
for the sale of the Bonds are hereby approved and the Mayor and Clerk are authorized to execute
the same on behalf of the City.
Section 3. That the notice of the sale of the Bonds heretofore given and all acts of the
Clerk and Finance Director done in furtherance of the sale of the Bonds are hereby ratified and
approved.
PASSED AND APPROVED this 2nd day of May, 2017.
ATTEST:
� r
City Cl
M
yor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
May 2017.
City Cl k, ity of Iowa City, State oT Iowa
(SEAL)
01352490-1\10714-126
11.
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at
7:00 P .M., on the above date. There were present Mayor Throgmorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Taylor, Thomas, Throgmorton
Absent: Dickens
Vacant: None
-I-
Council Member Mims introduced the following Resolution entitled
"RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING SEWER
REVENUE REFUNDING CAPITAL LOAN NOTES, SERIES 2009A, OF THE CITY OF
IOWA CITY, STATE OF IOWA, DATED MAY 18, 2009, AND DIRECTING NOTICE BE
GIVEN" and moved its adoption. Council Member Botchwav seconded the motion to
adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims,
Taylor, Thomas, Throgmorton
NAYS:
ABSENT: Dickens
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No 17-153
RESOLUTION AUTHORIZING THE REDEMPTION OF
OUTSTANDING SEWER REVENUE REFUNDING CAPITAL
LOAN NOTES, SERIES 2009A, OF THE CITY OF IOWA CITY,
STATE OF IOWA, DATED MAY 18, 2009, AND DIRECTING
NOTICE BE GIVEN
WHEREAS, the City did by resolution dated April 20, 2009 authorize the issuance of
$8,660,000 Sewer Revenue Refunding Capital Loan Notes, Series 2009A, (the "Notes") dated
May 18, 2009; and
WHEREAS, the Notes are redeemable in any order of their numbering on July 1, 2017 or
any date thereafter upon giving notice in the manner provided in the resolution authorizing the
issuance of the Notes; and
WHEREAS, it is deemed necessary and advisable that $5,245,000 be so redeemed on,
July 1, 2017 and notice of redemption be given according to the terms of the resolution
authorizing issuance of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That outstanding Sewer Revenue Refunding Capital Loan Notes, dated
May 18, 2009, in the principal amount of $5,245,000, be and the same are hereby redeemed as of
July 1, 2017.
-2-
Section 2. The Registrar and Paying Agent, U.S. Bank National Association, St. Paul
Minnesota, is hereby authorized and directed to cause notice of such redemption be given not
less than thirty (30) days prior to the redemption date and to cause notice of redemption to be
mailed to the registered owners of the Notes by ordinary mail, and to notify DTC, and to notify
the Insurer, Financial Security Assurance, Inc.
Section 3. The Finance Director is hereby authorized and directed to cause to be
deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed
Notes to the date of redemption and to notify the City's dissemination agent to post the Notice of
Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Notes
in accordance with the Continuing Disclosure Certificate for the Notes.
Section 4. That the form of such notice be substantially as follows:
-3-
NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE
FOLLOWING DESCRIBED NOTES:
Please take notice that the Notes described below have been called for redemption.
Owners of the Notes should present their Notes for payment on the redemption date.
Issuer: City of Iowa City, State of Iowa
Original Issue Amount: $8,660,000
Note Issue: Sewer Revenue Refunding Capital Loan Notes, Series 2009A
Dated Date: May 18, 2009
Redemption Date: July 1, 2017
Redemption Price: At par, plus accrued interest
Notes Called for Redemption
CUSIP
Principal
Interest
Maturity
Numbers
Amount
Rate
Date
462362 LD4
$550,000
4.50%
July 1, 2018
462362 LE2
$575,000
4.50%
July 1, 2019
462362 LF9
$605,000
4.50%
July 1, 2020
462362 LG7
$635,000
4.50%
July 1, 2021
462362 LH5
$665,000
5.00%
July 1, 2022
462362 LJI
$700,000
5.00%
July 1, 2023
462362 LK8
$740,000
5.00%
July 1, 2024
462362 LL6
$775,000
5.00%
July 1, 2025
No representation is made as to the accuracy of the CUSIP numbers printed herein or on
the Notes.
The above Notes should be presented to U.S. Bank National Association, St. Paul,
Minnesota. This represents a full call of the outstanding obligations. All interest will cease to
accrue on the Redemption Date.
U.S. BANK NATIONAL ASSOCIATION
St. Paul, Minnesota
Registrar
(End of Notice)
10
PASSED AND APPROVED this 2nd day of May, 2017.
ATTEST:
City Cler
-5-
yor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
May 2017.
City Cl k, ity of I wa City, State of Iowa
(SEAL)
01352490-1\10714-126
a
May 2, 2017
The Finance Director of the City of Iowa City, State of Iowa, met in the City Hall, 410 E.
Washington, Iowa City, Iowa, at 11:00 A.M., on the above date, to open sealed bids received,
access electronic bids and to refer the sale of the Bonds to the best and most favorable bidder for
cash, subject to approval by the City Council at 7:00 P.M. on the above date.
The following persons were present:
Dennis Bockenstedt, Larry Burger,- Speer Financial
-I-
This being the time and place for the opening of bids for the sale of $5,910,000 (Subject
to Adjustment per Terms of Offering) Water Revenue Bonds, Series 2017C, the meeting was
opened for the receipt of bids for the Bonds. The following actions were taken:
Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:
(Attach List of Bidders)
2. The Finance Director then declared the time for filing of sealed bids to be closed and that
the sealed bids be opened. The sealed bids were opened and announced.
2-
3. Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
(Attach List of Bidders)
Robert W. Baird & Co. Milwaukee, WI
Morgan Stanley New York, NY
4. The best bid was determined to be as follows:
Name & Address of Bidder: Robert W. Baird & Co. of Milwaukee. WI
True Interest Rate (as -bid): 1.843471 %
Net Interest Cost (as -bid): $ 519, 120.64
In consultation with the Municipal Advisor, the City considered the adjustment of the
aggregate principal amount of the Bonds and each scheduled maturity thereof in accordance with
the Terms of Offering and the following actions were taken:
Final Par Amount as adjusted: $ 5,910,000
Purchase Price as adjusted: $ 5,974.783.25
All bids were then referred to the Council for action.
-3-
jr Speer Financial, Inc®
INDEPENDENT MUNICIPAL ADVISORS O ESTABLISHED 1954
SUITE 608 • 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 s (319) 291-2077 • FAX (319) 291-8628
Investment Rating:
Moody's Investors Service
$5,910,000
CITY OF IOWA CITY
Johnson County, Iowa
Water Revenue Bonds, Series 2017C
Date of Sale: May 2, 2017
Average Life: 4.726 Years
(Based on TIC)
Aa2
Bidders* Price
True
Maturities Rates Interest"
Robert W. Baird & Co. 101.096%
2018-2023 2.000% 1.8434%
Milwaukee, Wisconsin $5,974,783.25
2024-2025 2.250% $519,121
In association with:
C.L. King & Associates
Edward Jones
Fidelity Capital Markets
Ross, Sinclaire & Associates, Inc.
SAMCO Capital Markets
Vining -Sparks IBG, Limited Partnership
Bemardi Securities, Inc.
SumRidge Partners
Country Club Bank
Loop Capital Markets
D.A. Davidson & Co.
First Empire Securities
Wedbush Securities, Inc.
Rafferty Capital Markets
FMS Bonds, Inc.
Isaak Bond Investments, Inc.
Alamo Capital WMBE
Dougherty LLC
Crews & Associates, Inc.
WNJ Capital
Davenport & Co. LLC
Duncan -Williams, Inc.
Oppenheimer & Co.
R.Seelaus & Company, Inc.
Northland Securities, Inc.
Wayne Hummer & Co.
Sierra Pacific Securities
Isaak Bond Investments, Inc.
IFS Securities
Midland Securities
First Kentucky Securities Corp.
Morgan Stanley 104.753% 2018-2025 3.000% 1.9327%
New York, New York $6,190,959.22 $557,021
"Syndicate information is provided by the underwriter. The information contained in this report is the most current available.
"The true interest rate reflects the time value of money where dollars spent in early years have a greater weight than dollars spent in later years.
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at 7:00
P.M., on the above date. There were present Mayor Throgmorton , in the chair, and the
following named Council Members:
Botchway, Cole, Mims, Taylor Thomas Throgmorton
Absent: Dickens
Vacant: None
Council Member Mims introduced the following Resolution entitled
"RESOLUTION DIRECTING SALE OF $ 5,9 10,000 WATER REVENUE
BONDS, SERIES 2017C," and moved its adoption. Council Member Thomas
seconded the motion to adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims
Taylor, Thomas, Throgmorton
NAYS: None
ABSENT: Dickens
Whereupon, the Mayor declared the following Resolution duly adopted:
Resolution No 17-154
RESOLUTION DIRECTING SALE OF $5,910,000
WATER REVENUE BONDS, SERIES 2017C
WHEREAS, bids have been received for the Bonds described as follows and the best bid
received (with permitted adjustments, if any) is determined to be the following:
$ 5,910,000 WATER REVENUE BONDS,
SERIES 2017C
Bidder: Robert W. Baird & Co.
The terms of award:
of Milwaukee, WI
Final Par Amount as adjusted: $ 5,910,000
Purchase Price as adjusted:$ 5,974,783.25
True Interest Rate: 1.843471
Net Interest Cost: $ 519, 120.64
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That the bid for the Bonds as above set out is hereby determined to be the best
and most favorable bid received and, the Bonds are hereby awarded as described above.
-5-
Section 2. That the statement of information for Bond bidders and the form of contract
for the sale of the Bonds are hereby approved and the Mayor and Clerk are authorized to execute
the same on behalf of the City.
Section 3. That the notice of the sale of the Bonds heretofore given and all acts of the
Clerk and Finance Director done in furtherance of the sale of the Bonds are hereby ratified and
approved.
PASSED AND APPROVED this 2nd day of May, 2017.
ATTEST:
.y. V
Qom,. City Clerk
M or
mom
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
May 2017.
City C City of Iowa City, State of Iowa
(SEAL)
01352490-1\10714-126
N
May 2, 2017
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at
7:00 P .M., on the above date. There were present Mayor Throsmorton in the
chair, and the following named Council Members:
Botchway, Cole, Mims, Taylor, Thomas, Throgmorton
Absent:
Vacant: None
-I-
Council Member Thomas introduced the following Resolution entitled
"RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING WATER
REVENUE REFUNDING CAPITAL LOAN NOTES, SERIES 2009B, OF THE CITY OF
IOWA CITY, STATE OF IOWA, DATED MAY 18, 2009, AND DIRECTING NOTICE BE
GIVEN" and moved its adoption. Council Member Mims seconded the motion to
adopt. The roll was called and the vote was,
AYES: Botchway, Cole, Mims
Taylor, Thomas, Throgmorton
NAYS: None
ABSENT: Dickens
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No 17-155
RESOLUTION AUTHORIZING THE REDEMPTION OF
OUTSTANDING WATER REVENUE REFUNDING CAPITAL
LOAN NOTES, SERIES 2009B, OF THE CITY OF IOWA CITY,
STATE OF IOWA, DATED MAY 18, 2009, AND DIRECTING
NOTICE BE GIVEN
WHEREAS, the City did by resolution dated April 20, 2009, authorize the issuance of
$9,750,000 Water Revenue Refunding Capital Loan Notes, Series 2009B, (the "Notes") dated
May 18, 2009; and
WHEREAS, the Notes are redeemable in any order of their numbering on July 1, 2017 or
any date thereafter upon giving notice in the manner provided in the resolution authorizing the
issuance of the Notes; and
WHEREAS, it is deemed necessary and advisable that $5,725,000 be so redeemed on
July 1, 2017 and notice of redemption be given according to the terms of the resolution
authorizing issuance of the Notes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, STATE OF IOWA:
Section 1. That outstanding Water Revenue Refunding Capital Loan Notes, dated
May 18, 2009, in the principal amount of $5,725,000, be and the same are hereby redeemed as of
July 1, 2017.
Section 2. The Registrar and Paying Agent, U.S. Bank, National Association, St. Paul,
Minnesota, is hereby authorized and directed to cause notice of such redemption be given not
-2-
less than thirty (30) days prior to the redemption date and to cause notice of redemption to be
mailed to the registered owners of the Notes by ordinary mail, and to notify DTC, and to notify
the Insurer, Financial Security Assurance, Inc.
Section 3. The Finance Director is hereby authorized and directed to cause to be
deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed
Notes to the date of redemption and to notify the City's dissemination agent to post the Notice of
Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Notes
in accordance with the Continuing Disclosure Certificate for the Notes.
Section 4. That the form of such notice be substantially as follows:
-3-
NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE
FOLLOWING DESCRIBED NOTES:
Please take notice that the Notes described below have been called for redemption.
Owners of the Notes should present their Notes for payment on the redemption date.
Issuer: City of Iowa City, State of Iowa
Original Issue Amount: $9,750,000
Note Issue: Water Revenue Refunding Capital Loan Notes, Series 2009B
Dated Date: May 18, 2009
Redemption Date: July 1, 2017
Redemption Price: At par, plus accrued interest
Notes Called for Redemption
CUSIP
Principal
Interest
Maturity
Numbers
Amount
Rate
Date
462380 FX9
$610,000
4.00%
July 1, 2018
462380 FY7
$635,000
4.00%
July 1, 2019
462380 FZ4
$665,000
4.25%
July 1, 2020
462380 GA8
$695,000
4.50%
July 1, 2021
462380 G136
$725,000
4.50%
July 1, 2022
462380 GC4
$760,000
4.50%
July 1, 2023
462380 GD2
$800,000
4.50%
July 1, 2024
462380 GEO
$835,000
4.50%
July 1, 2025
No representation is made as to the accuracy of the CUSIP numbers printed herein or on
the Notes.
The above Notes should be presented to U.S. Bank National Association, St. Paul,
Minnesota. This represents a full call of the outstanding obligations. All interest will cease to
accrue on the Redemption Date.
U.S. BANK NATIONAL ASSOCIATION
St. Paul, Minnesota
Registrar
(End of Notice)
me
PASSED AND APPROVED this 2nd day of May, 2017.
ATTEST:
City r
M,qKor
-5-
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 2nd day of
ay 2017.
v
City k, City of Iowa City, State of Io E a
(SEAL)
01352490-1\10714-126
Prepared by: Wendy Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248
RESOLUTION NO. 17-156
RESOLUTION APPROVING AMENDMENT NO. 15 TO THE CITY -UNIVERSITY
PROJECT 1 URBAN RENEWAL PLAN TO ADD PROJECTS TO THE URBAN
RENEWAL AREA.
WHEREAS, on April 4, 2017, City Council adopted a resolution of necessity
(Res. No. 17-109) contemplating an amendment to the City -University Project 1 Urban
Renewal Plan to facilitate consideration of future urban renewal projects, said
amendment being the 15'" amendment thereto, and
WHEREAS, pursuant to Res. No. 17-109, consultation with affected taxing
entities was duly held and all required responses to the recommendations made by the
affected taxing entities, have been timely made as set forth in the report of the
Economic Development Coordinator filed herewith and incorporated herein by the
reference, which report is in all respects approved; and
WHEREAS, pursuant to said Res. No. 17-109, a public hearing was held after
due and proper notice of said public hearing was given, as provided by law, by timely
publication in the Iowa City Press Citizen.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE
CITY OF IOWA CITY, IOWA:
Section 1. This Council finds that Amendment No. 15 to' the City -University
Project 1 Urban Renewal Plan conforms to the general plan for the development of the
City as a whole; will not result in the displacement of families; and, does not contain
open land to be acquired by the City; and,
Section 2. That Amendment No. 15 is hereby approved and adopted as the
"Amendment No. 15 to the City -University Project 1 Urban Renewal Plan for the City -
University Project 1 Urban Renewal Area"; and the City Clerk is hereby directed to file
a certified copy of said Amendment No. 15 with the proceedings of this meeting.
Section 3. That the City -University Project 1 Urban Renewal Plan for the City -
University Project 1 Urban Renewal Area, as amended herein, shall be in full force and
effect from the date of this resolution until the later of the date of termination set forth
in the Plan, as amended, or the date on which payment of all obligations issued or
advances made to carry out the purposes thereof shall be fully provided for. Said
Amendment No. 15 shall be forthwith certified by the City Clerk, along with a copy of
this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded in
the manner provided by law.
PASSED AND APPROVED this 2nd day of May , 2017.
ATTEST:
city CI
yor
loveT
City Attorney's Office
zi
Resolution No. 17-156
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS
x
x
x
x
x
x
ABSENT:
x
ABSTAIN:
Mims the
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Amendment No. 15
City -University Project 1
Urban Renewal Plan
City of Iowa City, IA
Original Area Adopted 1969
Amendment No. 1 -1972
Amendment No. 2 -1973
Amendment No. 3 -1973
Amendment No. 4 -1976
Amendment No. 5 -1977
Amendment No. 6 -1979
Amendment No. 7 -1984
Amendment No. 8 -1987
Amendment No. 9 - 2001
Amendment No. 10 - 2012
Amendment No. 11 - 2013
Amendment No. 12 - 2014
Amendment No. 13 - 2015
Amendment No. 14 - 2016
Table of Contents
Section 1 — Introduction
Section 2 — Urban Renewal Plan Objectives
Section 3 - Proposed Urban Renewal Projects
Section 4 — Proposed Urban Renewal Activities
Section 5 - Debt
Section 6 — Urban Renewal Plan Amendments
Section 7 - Effective Period
Section 8 - Repealer
Section 9 - Severability Clause
-2-
SECTION 1- INTRODUCTION
The City -University Project 1 Urban Renewal Plan ("Plan") for the City -University
Project 1 Urban Renewal Area ("Area" or "Urban Renewal Area"), adopted in 1969 and
amended fourteen times since, is being further amended with this Amendment #15 to
add projects to the Urban Renewal Area.
No land is being added to the Area by this amendment. The amendment does
not change the Plan's previously approved project area objectives or urban renewal
activities. Except as modified by this Amendment, the provisions of the original City -
University Project 1 Urban Renewal Plan, as previously amended, are hereby ratified,
confirmed, and approved and shall remain in full force and effect., In case of any conflict
or uncertainty, the terms of the Amendment shall control.
SECTION 2 — URBAN RENEWAL PLAN OBJECTIVES
In addition to the objectives listed in the plan, as previously amended, the
following objective is added: Promotion of residential development for low and
moderate income families.
SECTION 3 - PROPOSED URBAN RENEWAL PROJECTS
Although certain project activities may occur over a period of years, in addition to
the projects previously proposed in the Plan, as amended, the following proposed urban
renewal projects are hereby added to the Plan:
1. Public Improvements
Project
Approximate
Estimated Cost
Rationale
Date
Kirkwood Avenue to Capitol
2021
$3,000,000
Supports transportation
Street Connection
network that encourages
walking, biking, and public
transit, provides opportunity
to develop parkland, trail and
green space along River.
Gilbert Street Intersection
2017-2018
$925,000
Supports more livable
Improvements
community with integration of
safe, reliable transportation
network
Pedestrian Mall
2018-2019
$7,800,000
Provides for opens spaces
reconstruction
and pedestrian ways that
reinforce pedestrian
orientation of downtown.
Strengthens the core area for
commerce, culture,
-3-
education, entertainment, etc.
2. Planning, engineering fees, costs and attorney fees to support urban
renewal plan -related projects
Project
Date
Estimated
Attorney fees to support
Ongoing
Cost
urban renewal ro'ects
To preserve and protect buildings that,
$100,000
3. Development Agreements
Project
Date
Estimated cost
Rationale
Redevelopment of
2017
$6,000,000
To preserve and protect buildings that,
City Hall parking lot,
for reason of age, history, architecture or
to include
significance are listed or are eligible for
restoration and
listing on the National Register of
reuse of historic
Historic Places, strengthen the economic
church for a
well-being of the area and provide
commercial
residential development for low and
enterprise, and
moderate income families
residential
development for low
and moderate
income families.
Redevelopment
2017-2019
$9,000,000
Remediate blight; strengthen core area
project at the corner
for commerce, culture, entertainment.
of Burlington and
Clinton Streets
Englert/Film Scene
2018-2020
$1,000,000
Strengthens the core area for
Building
commerce, culture, education,
Renovations
entertainment, etc. To preserve and
protect buildings that, for reason of age,
history, architecture or significance are
listed or are eligible for listing on the
National Register of Historic Places.
Workforce Housing
2018-2020
$312,000
To create residential living spaces young
Tax Credit matching
professionals and members of the
source for project at
creative class by offering a variety of
1201 S. Gilbert St.
housing options.
SECTION 4 — PROPOSED URBAN RENEWAL ACTIVITIES
All activities or actions from previous Plan amendments continue, as detailed in
previous Plan amendments.
SECTION 5 - DEBT
1. 1 FY 2017 constitutional debt limit: 1 $267,511,393
2.
Outstanding general obligation debt:
$52,295,000
3.
Proposed amount of loans, advances, indebtedness or
bonds to be incurred: The specific amount of debt to be
incurred for the Proposed Urban Renewal Projects has not
yet been determined. The Projects authorized in this
Amendment are only proposed projects at this time. The City
Council will consider each proposed project on a case-by-
case basis to determine if it is consistent with the Plan and in
the public's best interest. These proposed Projects, if
approved, will commence and be concluded over a number
of years. In no event will debt be incurred that would exceed
the City's debt capacity. It is expected that such
indebtedness, including interest thereon, may be financed in
whole or in part with tax increment revenues from the Urban
Renewal Area. Subject to the foregoing, it is estimated that
the cost of the Proposed Urban Renewal Projects described
Not to exceed:
above will be approximately as follows:
$28,037,000
SECTION 6 — URBAN RENEWAL PLAN AMENDMENTS
If the City of Iowa City desires to amend this Plan, it may do so in conformance
with applicable state and local laws.
SECTION 7 - EFFECTIVE PERIOD
This Urban Renewal Plan Amendment #15 will become effective upon its
adoption by the City Council. Notwithstanding anything to the contrary in the Urban
Renewal Plan, any prior amendment, resolution, or document, the Urban Renewal Plan
shall remain in effect until terminated by the City Council, and the use of incremental
property tax revenues, or the "division of revenue," as those words are used in Chapter
403 of the Code of Iowa, will be consistent with Chapter 403 of the Iowa Code.
SECTION 8 - REPEALER
Any parts of the previous Plan, as previously amended, in conflict with this
Amendment are hereby repealed.
SECTION 9 - SEVERABILITY CLAUSE
If any part of the Amendment is determined to be invalid or unconstitutional, such
invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan
as a whole or the previous amendments to the Plan, or any part of the Plan not
determined to be invalid or unconstitutional.
-5-
Prepared by: Eleanor Dillcm, City Attomey, 410 E Washington St Iowa City JA 52240 356-5030
RESOLUTION NO. 17-157
RESOLUTION APPROVING A DEVELOPMENT AGREEMENT,
INCLUDING THE TRANSFER OF LAND, BY AND BETWEEN
THE CITY OF IOWA CITY, IOWA AND AUGUSTA PLACE LLC
WHEREAS, on October 2, 1969, the Iowa City City Council adopted Resolution No.
2157 approving the City -University Project I Urban Renewal Plan (Project No. IA R-14), which
plan has been modified and amended from time to time (said plan, as amended, is hereinafter
referred to as the "Plan") for the City -University Urban Renewal Area (the "Urban Renewal
Area" or "Area") described therein, which is on file in the office of the Recorder of Johnson
County; and,
WHEREAS, among the Plan objectives for the Area are objectives to preserve and
protect buildings that, for reason of age, history, architecture or significance are listed or are
eligible for listing on the National Register of Historic Places, to strengthen the economic well-
being of the area and to provide residential development for low and moderate income families;
and,
WHEREAS, the City Council has adopted certain Economic Development Policies
intended to a) attract new residential and commercial development, b) retain the City's existing
businesses, and c) encourage business expansion, in order to a) increase economic activity, b)
create jobs; c) lower unemployment, d) increase wages; e) increase property values, 0 increase
tax revenues, g) increase ownership and entrepreneurial opportunities, h) revitalize underutilized
or blighted areas; and i) expand affordable housing; and
WHEREAS, the City received a proposal from Augusta Place, LLC (the "Developer"), in
the form of a proposed Development Agreement (the "Agreement") by and between the City and
the Developer, pursuant to which the property on the north half of the block bordered by Gilbert
Street, Iowa Avenue and Van Buren Street, a portion of which is owned by the City and
currently used as surface parking lot will be developed with the Development to include, among
other things, the Developer's investment of $35,163,653 in development costs to construct
certain Minimum Improvements, as defined in the Agreement, on certain real property located
within the City -University Urban Renewal Area, as legally described in the Agreement("the
Project"); and,
WHEREAS, said Project includes the acquisition, restoration and reuse of the historic
Unitarian Church for a commercial enterprise and designation as a historic landmark, residential
development which includes housing for low and moderate income families and replacement
parking sufficient for the City's public safety vehicles.
WHEREAS, pursuant to said Economic Development Policies, the City's consultant
made a financial analysis of the proposed Development Agreement, which analysis included an
examination of all financing sources for the project, the project costs, with scrutiny of the
Developer's return based largely on Developer equity and the maximization of project debt; and
WHEREAS, the Developer equity in the project, not including debt, is equal to or greater
than the public financing requested; and
WHEREAS, in exchange for construction of the Minimum Improvements and the
creation of a $14,384,905 minimum assessment value on the project once complete, the City
proposes to convey land to the Developer at the appraised value of $3,330,000, and to make
certain contributions to the project, including economic development grants in the form of TIF
rebates of 100% of the TIF revenue over a maximum 9 years in the maximum amount of
$4,020,292 for the commercial and on-site affordable housing components of the project, a
forgivable loan in the amount of $650,831, purchase of the improved surface parking lot for
$602,843, and purchase of six 1 bedroom apartments with Housing Authority funds for use as
affordable housing at a total price of $1,080,000; and,
WHEREAS, the Project will generate, when complete, an actual minimum taxable value
of $14,384,905 of new tax base upon which taxes will be paid to the taxing bodies pursuant to
the protected school debt service levy, school physical plant and equipment levy, county debt
service levy, city debt service levy, community college debt service levy, and school
instructional support levy; and,
WHEREAS, the Agreement provides for the execution by Developer of a minimum
assessment agreement with the City and the minimum actual value therein of $14,384,905
provides sufficient taxable valuations to permit the collection of incremental taxes to cause the
indebtedness and other costs incurred by the City with respect to the property being conveyed by
the City to Developer to be repayable as to principal within four tax years following the
commencement of full operation of the development; and,
WHEREAS, the City believes that the Project pursuant to this Agreement aligns with the
goals of the City's Comprehensive Plan, including the Downtown and Riverfront Crossings sub
district plan which includes the Development property, as the Project provides for preservation
of a historic building for commercial use, represents strategic infill development on an under-
utilized surface parking lot, is pedestrian oriented by adding to the number of residences in the
downtown within walking distance of grocery stores, services, restaurants and retail, brings the
active part of the building close to the property line with parking hidden behind and provides 6
units of on-site affordable housing as well as a commitment by the Developer to provide
additional off site affordable housing and replace the City owned parking necessary for the
public safety departments housed at City Hall; and,
WHEREAS, the Economic Development Grants to be provided by City to Developer
under this Agreement are for the purpose of acquiring, maintaining and rehabilitating the historic
Unitarian Church as a commercial enterprise and the development of housing for low and
moderate income families; and,
WHEREAS, Iowa Code Chapters 15A and 403 (the "Urban Renewal Law") authorize
cities to make grants for economic development in furtherance of the objectives of an urban
renewal project and to appropriate such funds and make such expenditures as may be necessary
to carry out the purposes of said Chapter, and to levy taxes and assessments for such purposes;
and,
WHEREAS, City Staff has reviewed the application and proposed Developer's
Agreement and recommends approval to the City Council; and
WHEREAS, on April 18, 2017, this Council did approve a resolution of intent to
consider a proposed development agreement with Augusta Place, LLC, which includes the
transfer of land described therein, and setting a public hearing and providing for the publication
of notice thereof; and
WHEREAS, notice of the public hearing thereon was published on April 24, 2017, in the
Iowa City Press -Citizen, and public hearing was held on May 2, 2017 in accordance with said
notice and in satisfaction of Section 364.6 of the City Code of Iowa; and
WHEREAS, the Council has determined that the Agreement is in the best interests of the
City and the residents thereof and that the performance by the City of its obligations to provide
economic development grants thereunder is a public undertaking and purpose and in furtherance
of the Plan and the Urban Renewal Law and, further, that the Agreement and the City's
performance thereunder is in furtherance of appropriate economic development activities and
objectives of the City within the meaning of Chapters 15A and 403 of the Iowa Code, taking into
account the factors set forth therein.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY IOWA THAT:
1. The Development Agreement by and between the City of Iowa City Iowa and Augusta
Place, LLC, which includes the conveyance of City owned property legally described as
follows:
BEGINNING AT THE NORTHEAST CORNER OF LOT 1, BLOCK
44, ORIGINAL TOWN OF IOWA CITY, IOWA, ACCORDING TO
THE PLAT RECORDED IN PLAT BOOK 1, PAGE 116 IN THE
RECORDS OF THE JOHNSON COUNTY RECORDER'S OFFICE;
THENCE S0004522"E, ALONG THE EAST LINE OF SAID LOT 1,
AND ITS SOUTHERLY EXTENSION, 160.46 FEET TO THE
CENTERLINE OF THE PLATTED ALLEY; THENCE
S89°19'44"W, ALONG SAID CENTERLINE, 319.30 FEET TO A
POINT ON THE WEST LINE OF SAID BLOCK 44; THENCE
N00°46'57"W, ALONG SAID WEST LINE, 50.58 FEET TO THE
SOUTHWEST CORNER OF THE NORTH 110 FEET OF LOT 4,
SAID BLOCK 44; THENCE N89°21'01 "E, ALONG THE SOUTH
LINE OF SAID NORTH 110 FEET OF LOT 4, A DISTANCE OF
79.84 FEET TO THE SOUTHEAST CORNER OF SAID NORTH
110 FEET OF LOT 4; THENCE N00046'56"W, ALONG THE EAST
LINE OF SAID LOT 4, A DISTANCE OF 110.00 FEET; THENCE
N89021'01"E, ALONG THE NORTH LINE OF LOTS 3, 2 AND 1, A
DISTANCE OF 239.53 FEET TO THE POINT OF BEGINNING,
3
CONTAINING 0.98 ACRE (42,477 SQUARE FEET) AND IS
SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD.
(Said property is sometimes legally described as follows: Lots 1-3, the south 40 feet of Lot 4, and
the north 10' of the alley adjacent thereto, Block 44, Original Town of Iowa City, Iowa, according
to the plat thereof);
is in the public interest of the residents of Iowa City and a public purpose will be accomplished
by the City's economic development grants to the Project.
2. Said Agreement is consistent with and authorized by the Urban Renewal Plan, all applicable
State and federal laws including, but not limited to, Iowa Code Chapters 15A and 403 and the
City's policies and practices,; and
3. The Mayor is authorized and directed to execute the Agreement and the City Clerk is authorized
and directed to attest the signature and to affix the seal of the City Clerk.
4. The Mayor and City Clerk be and they are hereby authorized and directed to take all such actions
and do all such things as they shall determine to be necessary or appropriate to ensure the City's
performance as provided therein, including the execution of any documents necessary to
effectuate the transfer of land or easement rights to the Developer in accordance with the terms
of the Agreement for Private Redevelopment and in a form approved by the City Attorney.
5. The City Clerk is directed to certify and record the resolution at the Developer's expense.
6. The City Manager is hereby authorized to administer the terms of the Agreement for Private
Redevelopment.
Passed and approved this 2nd day of may. 2017
A4IAYOR v
roved b
ATTEST:
CIT ERK City Attorney's Office
Resolution No. 17-157
Page 5
It was moved by Botchway and seconded by 'Thomas
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT: ABSTAIN:
—x— Botchway
—x— Cole
X Dickens
X
X Mims
X Taylor
X Thomas
Throgmorton
the
Late Handouts Distributed
AGREEMENT
sl 1-1
FOR (Da)
PRIVATE DEVELOPMENT
By and Between
THE CITY OF IOWA CITY, IOWA,
and
AUGUSTA PLACE, LLC
Execution Version Page 1
Table of Contents
INTRODUCTION..........................................................................................................................
4
ARTICLE I. DEFINITIONS.........................................................................................................
5
ARTICLE II. DEVELOPMENT, USE AND OCCUPANCY REQUIREMENTS ........................
8
ARTICLE III. REPRESENTATIONS AND WARRANTIES.....................................................
10
ARTICLE IV. CONVEYANCE OF CITY PROPERY...............................................................
13
ARTICLE V. TIME FOR COMMENCEMENT AND COMPLEITION OF MINIMUM
IMPROVEMENTS.......................................................................................................................
16
ARTICLE VI. CONSTRUCTION PLANS; CONSTRUCTION OF IMPROVEMENTS;
CERTIFICATE OF COMPLETION............................................................................................
16
ARTICLE VII. RIGHTS OF ACCESS TO PROPERTY............................................................
19
ARTICLE VIII. MINIMUM ASSESSMENT..............................................................................
19
ARTICLE IMCONVEYANCE OF CITY PARKING CONDOMINIUM UNIT AND ON-SITE
AFFORDABLE HOUSING UNITS.............................................................................................
21
ARTICLE XI. ANNUAL CERTIFICATION..............................................................................
24
ARTICLE XII. ASSIGNMENT AND TRANSFER...................................................................
25
ARTICLE XIII. ECONOMIC DEVELOPMENT GRANTS ......................................................
25
ARTICLE XIV. INDEMNIFICATION........................................................................................
28
ARTICLE XV. DEFAULT AND REMEDIES...........................................................................
29
ARTICLE XVI. OPTION TO TERMINATE AGREEMENT ....................................................
31
ARTICLE XVII. MISCELLANEOUS........................................................................................
31
Exhibit A. Map of Urban Renewal Area......................................................................................
34
Exhibit B. Legal Description of Urban Renewal Area.................................................................
35
Exhibit C. Legal Description of Development Property...............................................................
37
Exhibit C-1. Legal Description of City Property ..........................................................................
38
Exhibit C-2. Legal Description of Church Property.....................................................................
39
Exhibit D. Minimum Improvements and Uses.............................................................................
40
Exhibit D-1. On -Grade Parking and Fire Station Entry and Loading Dock Report .....................
42
ExhibitE. Concept Plan................................................................................................................
46
Exhibit F. Certificate of Completion............................................................................................
53
Exhibit G. Wage Theft Affidavit..................................................................................................
55
Exhibit H. Temporary Construction and Crane Swing Easement Agreement ..............................
56
Exhibit 1. Opinion of Counsel.......................................................................................................
60
Execution Version page 2
ExhibitJ. Promissory Note........................................................................................................... 62
Exhibit K. Minimum Assessment Agreement.............................................................................. 63
ExhibitL. Reserved...................................................................................................................... 67
Exhibit M. Annual Certification................................................................................................... 68
Exhibit N. Legal Description of Off-site Affordable Housing Units ............................................ 69
Exhibit O. Memorandum of Agreement....................................................................................... 70
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INTRODUCTION
THIS AGREEMENT FOR PRIVATE DEVELOPMENT is by and between the City of
Iowa City, Iowa ("City"), a municipality, established pursuant to the Code of Iowa of the State of
Iowa and acting under the authorization of Iowa Code Chapters 15A and 403 (2017), as
amended, ("Urban Renewal Act") and Augusta Place, LLC ("Developer"), a limited liability
company organized under the laws of the State of Iowa and having an office for the transaction
of business at 215 N. Linn Street, Iowa City, IA 52245. This agreement outlines the terms and
conditions, and the relative rights and responsibilities of the City and the Developer for the
development of the property in Iowa City located to the North of City Hall in Iowa City, Iowa,
legally described in Exhibit C hereto, ("the Property" or "the Development Property") an urban
renewal parcel.
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has
undertaken a program for the revitalization and economic development of an urban renewal area
in the City and, in this connection, is engaged in carrying out urban renewal project activities in
an area known as the City -University Project I Urban Renewal Area (Project No. IA R-14),
which area is described in the Urban Renewal Plan approved for such area by Resolution No.
2157 dated October 2, 1969 and amended from time to time; and
WHEREAS, the Plan was adopted for the urban renewal area shown on Exhibit A and
legally described on Exhibit B ("Urban Renewal Area"); and
WHEREAS, a copy of the Urban Renewal Plan as constituted on the date of this
Agreement has been recorded among the land records in the office of the Recorder of Johnson
County, Iowa; and
WHEREAS, the Developer has proposed a Project known as Augusta Place for the
development of the property on the northern half of the block bordered by Gilbert Street, Iowa
Avenue, Van Buren Street and Washington Street, which property is more particularly described
in Exhibit "C" attached hereto and made a part hereof (which property as so described is
hereinafter referred to as the "Property" or `Development Property'); and,
WHEREAS, the City has determined that the Project proposed by Developer, as further
described in Exhibit D "Minimum Improvements and Uses" and Exhibit E "Concept Plan", on
the Development Property, is consistent with and authorized by the Urban Renewal Plan and all
applicable State and federal laws, including but not limited to Iowa Code Chapters 15A and 403;
and
WHEREAS, the Developer is willing to develop or cause the Property to be developed
for and in accordance with the uses specified in the Urban Renewal Plan and in accordance with
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this Agreement by constructing the Project and incorporating the uses outlined in this
Agreement; and
WHEREAS, the City is willing to convey to the Developer that portion of the Property it
currently owns subject to the use limitations provided for in the Plan, this Agreement, and certain
restrictions, covenants, conditions and obligations assumed by the Developer pursuant to this
Agreement; and
WHEREAS, the parking lot currently on the City Property includes critical parking for
the City's public safety functions that are housed in City Hall, and a critical component of the
Project and the City's willingness to convey the City Property is the replacement and sale back to
the City of a City Parking Condominium Unit with 60 parking spaces; and,
WHEREAS, the Project will generate; when complete, an actual minimum taxable value
of $14,384,905 of new tax base upon which taxes will be paid to the taxing bodies pursuant to
the protected school debt service levy, school physical plant and equipment levy, county debt
service levy, city debt service levy, community college debt service levy, and school
instructional support levy; and,
WHEREAS, the City believes that the Project pursuant to this Agreement aligns with the
goals of the City's Comprehensive Plan, including the Downtown and Riverfront Crossings sub
district plan which includes the Development property, as the Project provides for preservation
of a historic building for commercial use, represents strategic infill development on an under-
utilized surface parking lot, is pedestrian oriented by adding to the number of residences in the
downtown within walking distance of grocery stores, services, restaurants and retail, brings the
active part of the building close to the property line with parking hidden behind and provides 6
units of on-site affordable housing as well as a commitment by the Developer to provide
additional off site affordable housing and replace the City owned parking necessary for the
public safety departments housed at City Hall; and,
WHEREAS, the Economic Development Grants to be provided by City to Developer
under this Agreement are for the purpose of acquiring, maintaining and rehabilitating the historic
Unitarian Church as a commercial enterprise and the development of housing for low and
moderate income families.
NOW, THEREFORE, in consideration of the promises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I. DEFINITIONS
Section 1.1. Definitions. In addition to other definitions set forth in this Agreement, all
capitalized terms used and not otherwise defined herein shall have the following meanings unless
a different meaning clearly appears from the context:
Agreement means this Agreement and all appendices hereto, as the same may from time to
time be modified, amended or supplemented.
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Augusta Place, LLC TIF ACCOUNT means a separate account within the City -University
Project 1 Urban Renewal Tax Increment Revenue Fund of the City, in which there shall be
deposited all Tax Increments received by the City with respect to the Minimum Improvements
on the Development Property described in Exhibit C.
Certificate of Completion means a certification in the form of the certificate attached
hereto as Exhibit F and hereby made a part of this Agreement, provided to the Developer
pursuant to Section 6.6 of this Agreement.
Church Propertv means the property owned by Developer and described on Exhibit C-2
attached hereto.
City means the City of Iowa City, Iowa, or any successor to its functions.
City Property means the property to be sold by City to Developer pursuant to Article IV
hereof and described on Exhibit C-1 attached hereto.
City Parking Condominium Unit means the condominium unit to be conveyed to the City
by Developer pursuant to Section 9.1 hereof, the components of which are described on Exhibit
D attached hereto.
Code means the Code of Iowa, 2017, as amended.
Construction Plans means the plans, specifications, drawings, progress reports and related
documents reflecting the construction work to be performed by the Developer with respect to the
Minimum Improvements on the Development Property and the other properties upon which the
Public Improvements will be located; the Construction Plans shall be as detailed as the plans,
specifications, drawings and related documents which are submitted to the building inspector of
the City as required by applicable City codes.
Coup means the County of Johnson, Iowa.
Developer means Augusta Place, LLC.
Development Prop ertv means that portion of the City University Project 1 Urban Renewal
Area of the City described in Exhibit C hereto, consisting of the "City Property" and "Church
Property" described in Exhibits C-1 and C-2 hereto.
Economic Development Grants mean the Tax Increment payments to be made by the City
to the Developer under Article XIII of this Agreement.
Event of Default means any of the events described in Section 15.1 of this Agreement.
First Mortgage means any Mortgage granted to secure any loan made pursuant to either a
mortgage commitment obtained by the Developer from a commercial lender or other financial
institution to fund any portion of the construction costs and initial operating capital requirements
of the Minimum Improvements, or all such Mortgages as appropriate.
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Minimum Improvements shall mean the construction of a development, together with all
related site improvements, detailed in Exhibits D and E hereto. Minimum Improvements shall
not include increases in assessed or actual value due to market factors.
Mortgage means any mortgage or security agreement in which the Developer has granted a
mortgage or other security interest in the Development Property, or any portion or parcel thereof,
or any improvements constructed thereon.
Net Proceeds means any proceeds paid by an insurer to the Developer under a policy or
policies of insurance required to be provided and maintained by the Developer, as the case may
be, pursuant to Article X of this Agreement and remaining after deducting all expenses
(including fees and disbursements of counsel) incurred in the collection of such proceeds.
Off-site Affordable Housing Units the twelve (12) two-bedroom apartments owned by an
affiliate of Developer, Allen Rentals, LLC, and to be transferred to Developer in accordance with
Section 4.6(o) of this Agreement located at 104 Westside Drive, Iowa City and legally -described
on Exhibit N hereto that will remain affordable in accordance with Section 2.1 of this
Agreement.
On-site Affordable Housing Units means the six (6) one -bedroom residential condominium
units approximately 550 square feet in size as shown on the Concept Plan attached hereto as
Exhibit E that will be conveyed by Developer to City pursuant to Section 9.1 hereof for use as
housing for low and moderate income families in accordance with Iowa Code Chapter 403.
Ordinance means Ordinance Nos. 12-4509 and 17-4704 of the City, under which the
taxes levied on the taxable property in the City -University project 1 Urban Renewal Area shall
be divided and a portion paid into the Iowa City Urban Renewal Tax Increment Revenue Fund.
Proiect shall mean the construction and operation of the Minimum Improvements on the
Development Property, as described in this Agreement.
State means the State of Iowa.
City -University Project 1 Urban Renewal Tax Increment Fund means the special fund of
the City created under the authority of Section 403.19(2) of the Code and the Ordinance, which
fund was created in order to pay the principal of and interest on loans, monies advanced to or
indebtedness, whether funded, refunded, assumed or otherwise, including bonds or other
obligations issued under the authority of Section 403.9 or 403.12 of the Code, incurred by the
City to finance or refinance in whole or in part projects undertaken pursuant to the City -
University Project 1 Urban Renewal Plan, as amended.
Tax Increments means the property tax revenues with respect to the Minimum
Improvements that are divided and made available to the City for deposit in the City -University
Project 1 Urban Renewal Tax Increment Revenue Fund under the provisions of Section 403.19
of the Code and the Ordinance.
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Termination Date means the date of termination of this Agreement, as established in
Section 17.8 of this Agreement.
Unavoidable Delays means delays resulting from acts or occurrences outside the
reasonable control of the party claiming the delay including but not limited to storms, floods,
fires, explosions or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts
or other labor disputes, delays in transportation or delivery of material or equipment, litigation
commenced by third parties, or the acts of any federal, State or local governmental unit (other
than the City).
Urban Renewal Plan means the City -University Project 1 Urban Renewal Plan, as
amended, approved in respect of the City -University project 1 Urban Renewal Area, described in
the preambles hereof.
ARTICLE II. DEVELOPMENT, USE AND OCCUPANCY REQUIREMENTS
Section 2.1. Construction and Uses.
(a) Minimum Improvements. The Developer shall construct the Minimum
Improvements on the Development Property, which will consist of a mixed-use structure
described more fully on Exhibit D and conceptually shown in Exhibit E, attached hereto and
incorporated herein by reference ("Minimum Improvements"). The Developer hereby commits
to a project that includes an approximate total of $35,163,653 in development costs.
(b) Affordable Housing. The Developer shall provide 18 affordable housing units.
To satisfy this obligation, in part, Developer agrees to sell 6 one -bedroom residential units in the
Project to the City pursuant to Section 9.1 hereof, for use as determined by City for low and
moderate income housing as defined in Iowa Code Chapter 403 ("On-site Affordable Housing
Units")
In further satisfaction of this obligation, Developer agrees to rent 12 two-bedroom
residential units located at 104 Westside Drive, in Iowa City, IA as affordable rental housing
subject to the limitations set forth here. Rental applications for these units shall include the
applicant's household income and household size and Developer shall verify that the units are
occupied by households with incomes at or less than 60% of median family income as
calculated under the HUD Part 5 Annual Income definition for that household (24 CFR 5.609).
(Currently, 60% of the HUD -established Area Median Income is $36,300 for a one person
household, $41,52 for a 2 -person household, $46,680 for a 3 -person household and $51,840 for a
4 -person household.)
Maximum rent shall be calculated based on 40% of area median income, as annually
defined by the U.S. Department of Housing and Urban Development. All utilities shall be paid
by the Developer. The method to calculate maximum rent for these 12 units is as follows:
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2 -Bedroom Unit
a. Median Income of a two person household
$69,200
b. 40% Median Income (two person household)
$27,680
c. 30% of income available for housing expenses
(b *.30)
$8,304
d. Monthly housing cost (c/12) —
MAXIMUM MONTHLY RENT
$692
In order to expand affordable housing opportunities in Iowa City, the Developer shall not
accept Housing Choice Vouchers for these reduced rent units.
The rent will be adjusted up annually if HUD adjusts the income limits higher than the
income limit identified in this Agreement. If the HUD income limits are adjusted by HUD
during the rental term (typically one year), the rent need not be changed for the duration of the
current lease. If at any time HUD adjusts the income limits lower than the income limit
identified in this Agreement, the Developer is not required to decrease the rent below the rents
identified in this Agreement. The Developer shall submit an annual tenant housing report
which, at a minimum, includes statistics relating to the households being assisted by unit,
household size, income, lease dates and rents. The report is due on October 15 annually for the
preceding 12 month period (October 1 through September 30). Income documentation must be
maintained by the Developer for the most recent three years, and presented upon request by the
City.
Tenant income shall be reviewed by the Developer before lease renewal (typically
annually). After the initial income determinations, subsequent determinations may be made
based on most recent tax forms, income stubs, etc. If the tenant's income exceeds 80% of
median income, the tenant must pay 30% of their income for rent and utilities and the maximum
rent determined by the formula above will no longer be applicable. For example, upon lease
renewal, a three person household's income is now $60,000 (over 80% median income). Their
rent would be $1,500 (($60,000*.30)/12).
Said Off-site Affordable Housing Units shall be affordable in accordance with the terms
hereof for a period of twenty (20) years from the date an occupancy permit is issued for the
Project and it is intended and agreed that the requirements of this section with respect to the Off-
site Affordable Housing Units (the "Covenants") shall run with the land. The Developer agrees
for itself, its successors and assigns that each deed or other conveyance of the Off-site
Affordable Housing Units shall contain the Covenants. It is intended and agreed that the City
and its successors shall be deemed beneficiaries of the Covenants, both for and in its own right
and also for the purposes of protecting the interests of the community and other parties, public or
private, in whose favor or for whose benefit such Covenants have been provided. Such
Covenants shall (and each deed shall so state) run in favor of the City for the applicable 20 year
period, during which time such Covenants shall be in force and effect. The City shall have the
right in the event of any breach of any Covenant during the applicable 20 year period to exercise
all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper
proceedings to enforce the curing of such breach of Covenant, to which it or any other
beneficiaries of such Covenant may be entitled, and shall be entitled to recover, in addition to its
court costs, a reasonable attorney's fee to be fixed by the court, and such recovery shall include
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court costs and attorney's fees on appeal, if any. Further, the City shall hold all right and
authority to agree to or provide any amendment, modification, waiver, termination or release of
the Covenants on behalf of itself and other parties, public or private, which are beneficiaries
thereof (other than Developer, its successors and assigns). Said Covenants shall survive the
termination of this Agreement.
(c) Staging Plan. Developer acknowledges that the construction site is directly to the
North of City Hall which houses the City's critical public safety operations. Prior to the start of
construction the City's Director of Public Works must approve the Developer's staging and
phasing plan and said plan must be designed to minimize the impact of the construction on
critical city operations.
(d) Use of Right-of-Wav; Construction Easements. In the event the Developer
requires use or' closing of public right-of-way for construction of the Minimum Improvements
any such closing is subject to the approval of the Director of Public Works and the execution of a
Temporary Use of Right of Way Agreement by the City's Director of Public Works and
Developer. Developer anticipates that it will need a Temporary Crane Swing easement from the
City, and that in order to complete the fire entrance, vestibule, and loading dock improvements
included within the City Parking Condominium Unit the Developer will require a Temporary
Construction Easement from the City. The agreement for said temporary easement rights shall
take a form substantially similar to the Temporary Construction Easement Agreement, attached
hereto as Exhibit H.
(e) Sound Due to Proximity of Emergency Operations Developer acknowledges that
the Development Property is in close proximity to the emergency operations of the City (police
and fire) and that noise from those operations, including emergency sirens and the testing of
those sirens in the parking facility, may be disruptive to occupants of the townhomes and
apartments to be constructed on the Development Property. It shall be Developer's
responsibility to notify tenants and purchasers of the proximity of these emergency operations
and the accompanying noises at the time of lease or sale. City shall have no obligation to
remedy any such noise concerns.
ARTICLE III. REPRESENTATIONS AND WARRANTIES
Section 3.1. Representations and Warranties of the City. The City makes the
following representations and warranties:
(a) The City is a municipal corporation and political subdivision organized under the
provisions of the Constitution and the laws of the State and has the power to enter into this
Agreement and carry out its obligations hereunder.
(b) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a
breach of, the terms, conditions or provisions of any contractual restriction, evidence of
indebtedness, agreement or instrument of whatever nature to which the City is now a party or by
which it is bound, nor do they constitute a default under any of the foregoing.
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Section 3.2 Covenants, Obligations, Representations and Warranties of Developer.
The Developer makes the following representations, commitments and warranties:
(a) The Developer is a limited liability company, duly organized under the laws of
the State of Iowa, has power to enter into this Agreement and to perform its obligations
hereunder, and is not in violation of any provisions of its articles of organization, operating
agreement, any other agreement or the laws of the State of Iowa.
(b) The Developer has the full power and authority to execute this Agreement and
this Agreement shall constitute the legal, valid and binding obligation of the Developer in
accordance with its terms, and the consent of no other party is required for the execution and
delivery of this Agreement by the Developer or the consummation of the transaction
contemplated hereby.
(c) The making and performance of this Agreement by the Developer and the
execution and delivery of the documents to be delivered by the Developer pursuant hereto, have
been duly authorized by all necessary action of the Developer, and this Agreement and such
documents will be valid and binding obligations of the Developer enforceable in accordance with
their terms.
(d) The Developer will cause the Minimum Improvements and the Off-site
Affordable Housing Units to be constructed, operated and maintained in accordance with the
terms of this Agreement, the Urban Renewal Plan, and all local, state and federal laws and
regulations (including, but not limited to, environmental, zoning, energy conservation, building
code and public health laws and regulations), except for minor variances necessary to construct
the Minimum Improvements contained in any Construction Plans approved by the City.
(e) The Developer will use its best efforts to obtain, or cause to be obtained, in a
timely manner, all required permits, licenses and approvals, and will meet, in a timely manner,
all requirements of all applicable local, state, and federal laws and regulations which must be
obtained or met before the Minimum Improvements may be lawfully constructed. The
Developer's Architect will work with the City's Design Review Committee on the final designs
of the project. The Design Review Committee will ultimately approve or disapprove the exterior
design of the building. This agreement is contingent on the Developer and the City's staff
Design Review Committee reaching agreement on the exterior design of the building. If the final
exterior design substantially deviates from the concept plan shown in Exhibit E, as determined
by the City Manager or designee, it shall be subject to approval by Council.
(f) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a
breach of the terms, conditions or provisions of any contractual restriction, evidence of
indebtedness, agreement or instrument of whatever nature to which the Developer is now a party
or by which it is bound, nor do they constitute a default under any of the foregoing.
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(g) The Developer will spend enough in construction of the Minimum Improvements,
when combined with the value of the Property and related site improvements, to equal or exceed
the Assessor's Minimum Actual Value set forth in Section 8.1 of this Agreement. The
Developer estimates that the Assessor's Minimum Actual Value set forth in Section 8.1 of this
Agreement is a reasonable estimate of the actual value for ad valorem tax purposes.
(h) The Developer has not received any notice from any local, state or federal official
that the activities of the Developer with respect to the Property may or will be in violation of any
environmental law or regulation (other than those notices, if any, of which the City has been
notified). The Developer is not aware of any State or federal claim filed or planned to be filed by
any party relating to any violation of any local, State or federal environmental law, regulation or
review procedure, and the Developer is not aware of any violation of any local, State or federal
law, regulation or review procedure which would give any person a valid claim under any State
or federal environmental statute.
(i) The Developer shall proceed with due diligence to obtain construction financing
commitments, which commitments shall be sufficient to enable the Developer to successfully
complete the Minimum Improvements as contemplated in this Agreement. This agreement is
contingent upon Developer obtaining financing upon terms and conditions satisfactory to
Developer and City, and shall be a condition precedent to the City's conveyance of the Property
to Developer in accordance with Section 4.6 hereof.
0) The Developer will cooperate fully with the City in resolution of any traffic,
parking, trash removal, public safety or any other problems which may arise in connection with
the construction and operation of the Minimum Improvements.
(k) In operating the Minimum Improvements upon completion of construction and in
performance of the Off-site Affordable Housing Unit obligations and covenants set forth herein,
the Developer shall do the following:
(i) Maintenance of Properties. The Developer will maintain, preserve and keep
the Minimum Improvements and the Off-site Affordable Housing Units in good repair and
working order, ordinary wear and tear excepted, and from time to time will make all necessary
repairs, replacements, renewals and additions.
(ii) Maintenance of Records. The Developer will keep at all times proper books of
record and account in which fall, true and correct entries will be made of all dealings and
transactions of or in relation to the business and affairs of the Developer in accordance with the
modified income tax basis of accounting consistently applied throughout the period involved,
and the Developer will provide reasonable protection against loss or damage to such books of
record and account.
(iii) Compliance with Laws. The Developer will comply with all laws, rules and
regulations relating to the Minimum Improvements, other than laws, rules and regulations the
failure to comply with which or the sanctions and penalties resulting therefrom, would not have a
material adverse effect on the business, property, operations, or condition, financial or otherwise,
of the Developer.
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(iv) Non -Discrimination. In operating the Minimum Improvements, the Developer
shall not discriminate against any applicant, employee or tenant because of race, creed, color,
religion, sex, national origin, sexual orientation, age, disability, marital status, gender identity,
presence or absence of dependents or public assistance source of income. The Developer shall
ensure that applicants, employees and tenants are considered and are treated without regard to
their race, creed, color, religion, sex, national origin, sexual orientation, age, disability, marital
status, gender identity, presence or absence of dependents or public assistance source of income.
(1) Developer (or any person or entity that has an interest in or owns more than 25% of
Developer) has not admitted guilt or liability or been adjudicated guilty or liable in any judicial
or administrative proceeding of committing a repeated or willful violation of the Iowa Wage
Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act or
any comparable state statute or local ordinance, which governs the payment of wages, within the
five (5) year period prior to the date of this Agreement and shall not be adjudicated guilty or
liable therefore at any time after the date of this Agreement.
ARTICLE IV. CONVEYANCE OF CITY PROPERY
Section 4.1 Purchase Price.
Subject to the terms, covenants, and conditions of this Development Agreement, the City
will sell the City Property legally described in Exhibit C-1 to Developer, and the Developer will
purchase the City Property from the City and pay therefor the amount of $3,330,000. The
purchase price will be paid in the form of $2,679,169 in cash from the Developer and a
forgivable loan by City to Developer in the amount of $650,831 pursuant to Section 4.7 hereof.
Section 4.2 Form of Deed.
The City shall convey to the Developer title to the Property by Warranty Deed ("Deed").
Such conveyance and title shall be, in addition to all conditions, covenants and restrictions set
forth or referred to elsewhere in this Agreement, subject to all conditions, covenants and
restrictions set forth in the Urban Renewal Plan.
Section 4.3 Recordation of Deed.
The Developer shall properly file the Deed for recordation among the land records in the
office of the Johnson County, Iowa Recorder. The Developer shall pay all costs for so recording
the Deed, Memorandum of this Agreement, and any necessary easement agreements provided for
in this Agreement.
Section 4.4 Abstract of Title.
The City, at its expense, shall provide an Abstract of Title on the subject property
continued through the date of this Agreement, for examination by the Developer. The City shall
deliver said Abstract to Developer within 30 calendar days of the date of this Agreement, after
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which the Developer shall have 30 calendar days to examine same and issue a preliminary title
opinion. The Abstract shall become the property of the Developer at the time of delivery of the
Deed for the parcel, and such Abstract shall show good and merchantable title in the City in
conformity with this Agreement, Iowa law and the title standards of the Iowa State Bar
Association, and shall show title free and clear of all taxes, encumbrances, easements, covenants,
reservations and restrictions, except as otherwise agreed to herein, which shall be subject to
approval of Developer after examination of the abstract of title and review of the specific terms
of any easements and restrictions, including, but not limited to, zoning ordinances, existing
easements, restrictions or reservations, including, but not limited to, those established by the
Urban Renewal Plan.
Section 4.5. Time and Place for Closing and Delivery of Deed.
If the conditions precedent to closing set forth in Section 4.6 hereof have been satisfied,
the City shall deliver the Deed and possession of the City Property to the Developer on or before
September 2, 2017, or on such other date as the parties hereto may mutually agree in writing (the
"Closing Date"); provided, however, that in the event the conditions precedent to closing have
not been satisfied, either the City or Developer may terminate this Agreement or waive or extend
the time for satisfaction of such conditions precedent. Delivery of the Deed shall be made at the
principal office of the City on the Closing Date and the Developer shall accept such delivery and
pay to the City at such time and place the Purchase Price in immediately available funds.
Section 4.6 Conditions Precedent to Conveyance of Property
The City's obligation to convey title and possession of the Property to the Developer on
the Closing Date, and Developer's obligation to accept title and possession of the Property on the
Closing Date shall be subject to satisfaction of the following conditions precedent:
(a) The Developer and the City shall be in material compliance with all of the terms and
provisions of this Agreement;
(b) The Developer shall have submitted to the City, and the City shall have approved,
those Construction Plans due on or before August 1, 2017 pursuant to Article VI of
this Agreement. The Developer shall have submitted to the City a certification that
the plans are in compliance with the Urban Renewal Plan and this Agreement.
(c) The Developer shall have furnished the City with evidence in a form satisfactory to
the City (such as a letter of commitment from a bank or other lending institution), that
the Developer has firm commitments for construction and permanent financing
acceptable to Developer for the Project in an amount sufficient, together with equity
commitments, to complete the Project in conformance with the Construction Plans, or
the City shall have received such other evidence of the Developer's financial ability
as in the reasonable judgment of the City is required;
(d) The Developer shall have furnished the City with evidence in a form satisfactory to
the City of the acquisition of performance and payment bonds for the Project naming
the City as an additional obligee;
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(e) Execution of the Minimum Assessment Agreement, pursuant to Article VIII of this
Agreement;
(f) Execution of the Temporary Construction and Crane Swing Easement Agreement
pursuant to Section 2.1(d) of this Agreement;
(g) Approval of Developer's Staging and Phasing Plan by the city pursuant to section 2.1
(c) of this Agreement;
(h) Execution of a Temporary Use of Right -of -Way Agreement pursuant to Section 2.1
of this Agreement;
(i) Receipt of an Opinion of Counsel to Developer as to the subject of and in the form of
Exhibit I, attached hereto;
(j) Agreement of the Developer and the City's staff Design Review Committee on the
exterior design of the building pursuant to 3.2(e) of this Agreement. If such
agreement is not reached, Developer has the right, at its option, to terminate this
Agreement; and,
(k) Rezoning of the Church Property as an historic landmark by the Iowa City City
Council.
(1) City approval of preliminary plans and specifications for the City Parking
Condominium Unit.
(m) Vacation of the North 10 feet of the alley as described in Exhibit C-1 of this
Agreement.
(n) Developer's execution of the Wage Theft Affidavit attached hereto as Exhibit "G"
(o) Evidence Satisfactory to City that the Off -Site Affordable Housing Units will be
conveyed to Developer no later than July 1, 2019.
Section 4.7 Forgivable Loan. On the date of closing, City shall make a loan to
Developer in the principal amount of $650,831.00 plus interest of 3.84% per annum, which loan
shall be forgiven upon issuance of a Certificate of Completion for the Minimum Improvements
pursuant to Section 6.6 hereof. In the event a Certificate of Completion is not issued in
accordance with Section 6.6, the entire principal amount and interest will become immediately
due and payable. Developer shall execute a Promissory Note in the form attached hereto as
Exhibit J and provide the same to City at closing.
Section 4.8 Escrow. It is contemplated by this agreement that the City will acquire
certain condominium units after the Minimum Improvements are constructed, as detailed in
Article IX. At closing, the City shall place $602,843.00 of said purchase price in escrow to be
held until the City Acquisition Closing Date, as defined in Section 9.5. On the City Acquisition
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Closing Date, the City will release these funds, along with any accumulated interest thereon to
Developer. The City will, in its sole judgment, secure the best possible interest rate on the
escrowed funds. The parties understand that the interest will be minimal in light of the
investment options available to the City and the limited time that the funds will be held in
escrow. In the event that the conditions precedent set forth in Section 9.6 are not met, the City
will not return any funds or interest to Developer, but rather may use these funds for whatever
purpose it deems appropriate.
ARTICLE V. TIME FOR COMMENCEMENT AND COMPLEITION OF MINIMUM
IMPROVEMENTS
Section 5.1. The construction of the Project and Minimum Improvements shall
commence not later than September 2, 2017, and shall be substantially completed on or before
June 30, 2019.
ARTICLE VI. CONSTRUCTION PLANS; CONSTRUCTION OF IMPROVEMENTS;
CERTIFICATE OF COMPLETION
Section 6.1 Plans for Construction of Improvements. Plans and specifications with
respect to redevelopment of the Property and the construction of certain improvements thereon,
to consist of the Minimum Improvements shown on Exhibit D and as outlined in Section 2.1
hereof, shall be in conformity with the Urban Renewal Plan and this Agreement, and all
applicable federal, State and local laws and regulations. As promptly as possible after the date of
this Agreement, and, in any event, no later than the time specified therefore in Section 6.2
hereof, the Developer shall submit to the City for design review and approval plans, drawings,
specifications, and related documents, and the proposed construction schedule in sufficient
completeness and detail to show that such Minimum Improvements and construction thereof will
be in accordance with the provisions of the Urban Renewal Plan, this Agreement, and all
applicable codes. If the Construction Plans conform to the provisions of the Urban Renewal Plan,
this Agreement, and all applicable codes, the City shall approve in writing such Construction
Plans and no further filing by the Developer or approval by the City thereof shall be required
except with respect to any substantial change. The City will then, upon appropriate showing of
compliance with the requirements of the previous sentence, issue the appropriate building
permit(s).
Failure by the City to identify a code deficiency during plan review does not, however,
relieve the Developer from any obligation to comply with all applicable code provisions. Such
Construction Plans shall, in any event, be deemed approved unless rejection thereof in writing by
the City, in whole or in part, setting forth in detail the reasons therefore, shall be made within the
time specified in Section 6.2 hereof. If the City so rejects the Construction Plans in whole or in
part as not being in conformity with the Urban Renewal Plan, this Agreement, or all applicable
codes, the Developer shall submit new or corrected Construction Plans which are in conformity
with the Urban Renewal Plan, this Agreement, and all applicable codes within the time specified
in Section 6.2 hereof, after written notification to the Developer of the rejection.
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The provisions of this Section relating to approval, rejection, and resubmission of
corrected Construction Plans herein above provided with respect to the Construction Plans shall
continue to apply until the Construction Plans have been approved by the City: Provided, that in
any event the Developer shall submit Construction Plans which are in conformity with the
requirements of the Urban Renewal Plan for the Project, this Agreement and all applicable codes,
as determined by the City, no later than the time specified therefore in Section 6.2 hereof. All
work with respect to the Minimum Improvements to be constructed or provided by the
Developer on the Property shall be in conformity with the Construction Plans as approved by the
City.
Approval of the Construction Plans by the City shall not relieve Developer of any
obligation to comply with the terms and provisions of this Agreement, or the provision of
applicable federal, State and local laws, ordinances and regulations, nor shall approval of the
Construction Plans by the City be deemed to constitute a waiver of any Event of Default.
Approval of Construction Plans hereunder is solely for purposes of this Agreement, and shall not
constitute approval for any other City purpose nor subject the City to any liability for the
Minimum Improvements as constructed.
Section 6.2. Time for Submission and Approval
(a) Progress Reports and Time for Submission of Construction Plans. Developer will
keep the City informed regarding the status of the project by responding to inquiries from
representatives of the City and furnishing progress reports as reasonably requested, but not less
than quarterly during construction. Developer shall submit the following to City on or before the
identified date: 1) a Site Plan Application identifying how the building sits on the site and
identifying all existing and proposed utilities (adhering to site plan submittal requirements) and
an application and plans for Staff Design Review including schematic design development
drawings, showing preliminary floor plans, elevations identifying materials and colors and
related information by June 1, 2017; 2) Site preparation construction drawings by July 1, 2017;
3) Building Permit Application and plans for a foundation by August 1, 2017; 4) a Building
Permit Application and plans for the structure shell by October 1, 2017; 5) a Building Permit
Application and plans for the finish construction 6y January 1, 2018.
Within 30 calendar days of each submittal, the City shall review and approve or reject
and make recommendations for corrections to said Construction Plans. The City's review of said
Construction Plans shall be based on the Urban Renewal Plan, all applicable codes and any
additional requirements imposed on the Developer under this Agreement.
(b) Time for Submission of Corrected Construction Plans. Except as provided in
Paragraph (c) of this Section, the time within which the Developer shall submit any new or
corrected Construction Plans as provided for in Section 6.2(a) hereof shall be not later than
fifteen (15) calendar days after the date the Developer receives written notice from the City of
the City's rejection and recommendations for corrections to the Construction Plans referred to in
the latest such notice.
(c) Maximum Time for Approved Construction Plans. In any event, the time within
which the Developer shall submit Construction Plans which conform to the requirements of this
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Section and are approved by the City shall be not later than sixty (60) calendar days after the date
the Developer receives written notice from the City of the City's first rejection and
recommendations for corrections to the original Construction Plans submitted to it by the
Developer.
(d) Time for City Action on Change in Construction Plans. The time within which the
City may reject any change in the Construction Plans, as provided in Section 6.3 hereof, shall be
fifteen (15) calendar days after the date of the City's receipt of notice of such change.
Section 6.3. Changes in Construction Plans. If the Developer desires to make any
substantial change in the Construction Plans after their approval by the City, the Developer shall
submit the proposed change to the City for its approval. Pursuant to Section 3.2, if the final
exterior design substantially deviates from the concept plan shown in Exhibit E, as determined
by the City Manager or designee, it shall be subject to approval by Council. If the Construction
Plans, as modified by the proposed change, conform to the requirements of this Section with
respect to such previously approved Construction Plans, the City shall approve the proposed
change and notify the Developer in writing of its approval. Such change in the Construction
Plans shall, in any event, be deemed approved by the City unless rejection thereof, in whole or in
part, by written notice thereof by the City to the Developer, setting forth in detail the reasons
therefore, shall be made within the period specified therefore in Section 6.2(d) hereof.
Section 6.4. Commencement and Completion of Construction of Minimum
Improvements. The Developer agrees for itself, its successors and assigns, and every successor in
interest to the Property, or any part thereof, and each deed or other conveyance shall contain
covenants on the part of the Developer for itself and such successors and assigns, that the
Developer, and such successors and assigns, shall promptly begin and diligently prosecute to
completion the development of the Property through the construction of the Minimum
Improvements thereon, and that such construction shall in any event begin within the period
specified in Article V hereof and be completed within the period specified in such Article V. It
is intended and agreed, and each deed or other conveyance of the Property or any portion thereof
shall so expressly provide, that the construction of the Minimum Improvements shall be
covenants running with the land and they shall, in any event, and without regard to technical
classification or designation, legal or otherwise, and except only as otherwise specifically
provided in this Agreement itself, be, to the fullest extent permitted by law and equity, binding
for the benefit of the community and the City and enforceable by the City against the Developer
and its successors and assigns to or of the Property or any part thereof or any interest therein.
Section 6.5. Notice of Delays. Until construction of the Minimum Improvements has
been completed, the Developer shall give prompt notice in writing to the City of any adverse
development which would materially affect or delay the completion of such construction. Upon
such notification and subject to a written agreement with the City Manager, the completion date
will be extended accordingly.
Section 6.6. Certificate of Completion.
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(a) Promptly after completion of the Minimum Improvements in accordance with
those provisions of this Agreement relating solely to the obligations of the Developer to
construct the Minimum Improvements (including the dates for beginning and completion
thereof), the City will furnish the Developer with an appropriate instrument so certifying. Such
certification by the City shall be a conclusive determination of satisfaction and termination of the
agreements and covenants in this Agreement and in the deed with respect to the obligations of
the Developer, and its successors and assigns, to construct the Minimum Improvements and the
dates for the beginning and completion thereof. Such certification and such determination shall
not constitute evidence of compliance with or satisfaction of any obligation of the Developer to
any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the
Minimum Improvements, or any part thereof, or of any obligation under this Agreement other
than the obligations to construct the Minimum Improvements.
(b) The certification provided for in this Section 6.6 shall be in the form attached
hereto as Exhibit F. If the City shall refuse or fail to provide any certification in accordance with
the provisions of this Section, the City shall, within thirty (30) calendar days after written request
by the Developer, provide the Developer with a written statement indicating in adequate detail in
what respects the Developer has failed to complete the Minimum Improvements in accordance
with the provisions of this Agreement, or is otherwise in default, and what measures or acts will
be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain
such certification.
ARTICLE VII. RIGHTS OF ACCESS TO PROPERTY
Section 7.1 Access to Property. The Developer shall permit the representatives of the
City access to the Property at all reasonable times which it deems necessary for the purposes of
this Agreement including, but not limited to, inspection of all work being performed in
connection with the construction of the Minimum Improvements. No compensation shall be
payable nor shall any charge be made in any form by any party for the access provided for in this
Section.
ARTICLE VIII. MINIMUM ASSESSMENT
Section 8.1 Minimum Assessment Agreements.
Developer agrees to enter into a Minimum Assessment Agreement in a form in
substantial compliance with Exhibit K attached hereto, in order to establish a Minimum Actual
Value for the land and Minimum Improvements for this Project.
The Developer acknowledges and agrees that it, or the owners of condominium units
sold, will pay when due all taxes and assessments, general or special, and all other charges
whatsoever levied upon or assessed or placed against the Property and Minimum Improvements
thereon and further agrees with respect to all the Property, that:
(a) it will not seek administrative or judicial review of the applicability of any tax
statute determined by any official to be applicable to the Property or the Developer, or the
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owners of condominium units sold, or raise the inapplicability of any such tax statute as a
defense in any proceedings, including delinquent tax proceedings; that
(b) it will not seek administrative or judicial review of the constitutionality of any
tax statute determined by any official to be applicable to the Property or the Developer or the
owners of condominium units sold, or raise the unconstitutionality of any such tax statute as a
defense in any proceedings, including delinquent tax proceedings; and
(c) it will not cause a reduction in the taxable valuation upon which real property
taxes are paid with respect to the Project, which consists of a multi -use structure generally
consistent with the Minimum Improvements and Uses shown on Exhibit D, below the amount of
$14,384,905 after taking into consideration any factors such as "roll -backs" which would reduce
the taxable value of the Property as of January 1, 2020 ("Minimum Actual Value") through:
(i) willful destruction of the Property, or any part thereof;
(ii) a request to the City Assessor of Iowa City, Iowa to reduce the Minimum
Actual Value of the Property;
(iii) an appeal to the Board of Review of the City of Iowa City or to the Board
of Review of Johnson County to reduce the Minimum Actual Value of the Property;
(iv) a petition to the Board of Review of the State of Iowa or to the Director of
Revenue and Finance of the State of Iowa to reduce the Minimum Actual Value of the
Property below the amount noted above;
(v) an action in any District Court of the State of Iowa seeking a reduction in
the Minimum Actual Value of the Property below the amount noted above;
(vi) an application to the Director of Revenue and Finance of the State of Iowa
requesting an abatement of real property taxes pursuant to any present or future statute or
ordinance; or
(vii) any other proceedings, whether administrative, legal or equitable, with any
administrative body within the City of Iowa City, Johnson County, or the State of Iowa or
within any court of the State of Iowa or the federal government.
(d) With the exception of the City Parking Condominium Unit and the residential
units to be owned by the City, it shall not, prior to December 31, 2023, cause or voluntarily
permit the Property to become other than taxable property; to be taxable at an amount less than
the Minimum Actual Value noted above; to be owned by a utility or any other entity of a type
where the assessed value of taxable property of such entity is not treated as located within the
Project Area in its entirety; to be owned by any entity having tax exempt status; or apply for a
deferral of property tax on the Property pursuant to any present or future statute or ordinance.
(e) it is bound by the applicable Minimum Assessment Agreement attached as
Exhibit K, fixing the Minimum Actual Value of the Property as approved by the Assessor and
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the City as set forth herein and said Minimum Assessment Agreement shall inure to the benefit
of and be binding upon the Developer's successors in interest. The Developer shall provide to the
City a title opinion showing all lienholders, and all such lienholders shall consent to the
Minimum Assessment Agreement.
The Developer contemplates that the Project will consist of condominium units and
agrees that at the time of the execution of the declaration required by Chapter 499B Horizontal
Property (Condominiums) of the Code of Iowa, an attachment to the declaration will be executed
by the Developer, the City and the City Assessor allocating a portion of the Minimum Actual
Value to each unit.
On December 31, 2023, the Minimum Actual Values herein established and the
restrictions of this Section 8 shall be of no further force and effect and shall no longer encumber
the Property, and the Minimum Assessment Agreement shall terminate.
The Minimum Assessment Agreement shall be certified by the Assessor for the City as
provided in Iowa Code Section 403.6(19) and shall be filed for record in the office of the
Johnson County Recorder, and such filing shall constitute notice to any subsequent
encumbrancer or purchaser of the Property (or part thereof), whether voluntary or involuntary,
and such Minimum Assessment Agreement shall be binding and enforceable in its entirety
against any such subsequent purchaser or encumbrancer, including the holder of any First
Mortgage.
ARTICLE IMCONVEYANCE OF CITY PARKING CONDOMINIUM UNIT AND
ON-SITE AFFORDABLE HOUSING UNITS
Section 9.1 Consideration.
Subject to the terms, covenants, and conditions of this Development Agreement, the
Developer will convey the following real estate to the City:
(a) City Parking Condominium Unit. The City shall acquire the City Parking
Condominium Unit, as defined in Section 1.1 hereof, for $602,843. On the City Acquisition
Closing Date, as set forth below, the City will release to Developer the $602,843 escrowed plus
interest pursuant to Section 4.8 of this Agreement, in payment of said purchase price.
(b) On-site Affordable Housing Units. The City shall acquire the On-site Affordable
Housing Units, as defined in Section 1.1 hereof, for $180,000 each, for a total purchase price of
$1,080,000.
Section 9.2 Form of Deed.
The Developer shall convey to the City title to the City Parking Condominium Unit and
On-site Affordable Housing Units by Warranty Deed ("Deed").
Section 9.3 Recordation of Deed.
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The City shall, at its cost, properly file the Deed for recordation among the land records
in the office of the Johnson County, Iowa Recorder.
Section 9.4 Abstract of Title.
The Developer, at its expense, shall provide an Abstract of Title on the subject property
continued through the date of the recording of the Declaration of Horizontal Property Regime for
examination by the City. The Developer shall deliver said Abstract to City at least 60 calendar
days prior to the date of Closing, after which the City shall have 30 calendar days to examine
same and issue a preliminary title opinion. The Abstract shall become the property of the City at
the time of delivery of the Deed for the parcel, and such Abstract shall show good and
merchantable title in the City in conformity with this Agreement, Iowa law and the title standards
of the Iowa State Bar Association, and shall show title free and clear of all taxes, encumbrances,
easements, covenants, reservations and restrictions, except as otherwise agreed to herein, which
shall be subject to approval of City after examination of the abstract of title and review of the
specific terms of any easements and restrictions, including, but not limited to, zoning ordinances,
existing easements, restrictions or reservations.
Section 9.5 Time and Place for Closing and Delivery of Deed.
If the conditions precedent to closing set forth in Section 9.6 have been satisfied, the
Developer shall deliver the Deed and possession of the City Parking Condominium Unit and the
On-site Affordable Housing Units to the City on or before 30 days after the issuance of the date
of the Certificate of Completion, or on such other date as the parties hereto may mutually agree
in writing (the "Closing Date"); provided, however, that in the event the conditions precedent to
closing have not been satisfied such that closing does not occur by the Closing Date the City will
retain the escrowed funds in accordance with Section 4.8 of this Agreement and the Developer
will be in default of the terms of this Agreement pursuant to Section 15.1(a) of this Agreement.
Delivery of the Deed shall be made at the principal office of the City on the Closing Date and the
City shall accept such delivery and provide Developer with the consideration described in
Section 9.1 above.
Section 9.6 Conditions Precedent to Conveyance of Property
The City's obligation to accept title and possession of the City Parking Condominium
Unit and the On-site Affordable Housing Units on the City Acquisition Closing Date shall be
subject to satisfaction of the following conditions precedent:
(a) The Developer shall be in material compliance with all of the terms and provisions of
this Agreement.
(b) City inspection of the completed Parking Condominium Unit and On-site Affordable
Housing Units and determination that said units are built in compliance with the final
plans and specifications as approved by City.
(d) Developer's assignment of warranties and bonds for architectural and construction
services to City.
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(e) Certificates of occupancy.
(f) City approval of the Declaration of Submission of Property to Horizontal Property
Regime pursuant to Iowa Code Section 499B.
ARTICLE X. INSURANCE
Section 10.1. Insurance Requirements.
(a) Upon completion of construction of the Minimum Improvements and at all times
prior to the Termination Date, the Developer shall maintain, or cause to be maintained, at its cost
and expense (and from time to time at the request of the City shall furnish proof of the payment
of premiums on) insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under
a policy or policies covering such risks as are ordinarily insured through property policies against
risk by similar businesses, including (without limitation the generality of the foregoing) fire,
extended coverage, vandalism and malicious mischief, explosion, water damage, demolition
cost, debris removal, and collapse in an amount not less than the full insurable replacement value
of the Minimum Improvements, but any such policy may have a deductible amount of not more
than $250,000. No policy of insurance shall be so written that the proceeds thereof will produce
less than the minimum coverage required by the preceding sentence, by reason of co-insurance
provisions or otherwise, without the prior consent thereto in writing by the City. The term "full
insurable replacement value" shall mean the actual replacement cost of the Minimum
Improvements (excluding foundation and excavation costs and costs of underground flues, pipes,
drains and other uninsurable items) and equipment, and shall be determined from time to time at
the request of the City, but not more frequently than once every three years, by an insurance
consultant or insurer selected and paid for by the Developer and approved by the City.
(ii) Comprehensive general public liability insurance, including personal injury
liability for injuries to persons and/or property, including any injuries resulting from the
operation of automobiles or other motorized vehicles on or about the Development Property, in
the minimum amount for each occurrence and for each year of $1,000,000.
(iii) Such other insurance, including worker's compensation insurance respecting
all employees of the Developer, in such amount as is customarily carried by like organizations
engaged in like activities of comparable size and liability exposure; provided that the Developer
may be self-insured with respect to all or any part of its liability for worker's compensation.
(b) All insurance required by this Article X to be provided prior to the Termination
Date shall be taken out and maintained in responsible insurance companies selected by the
Developer which are authorized under the laws of the State of Iowa to assume the risks covered
thereby. The Developer will deposit annually with the City copies of policies evidencing all
such insurance, or a certificate or certificates or binders of the respective insurers stating that
such insurance is in force and effect. Unless otherwise provided in this Article X, each policy
shall contain a provision that the insurer shall not cancel or modify it without giving written
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notice to the Developer and the City at least thirty (30) days before the cancellation or
modification becomes effective. Not less than fifteen (15) days prior to the expiration of any
policy, the Developer shall furnish the City evidence satisfactory to the City that the policy has
been renewed or replaced by another policy conforming to the provisions of this Article X, or
that there is no necessity therefor under the terms hereof. In lieu of separate policies, the
Developer may maintain a single policy, or blanket or umbrella policies, or a combination
thereof, which provide the total coverage required herein, in which event the Developer shall
deposit with the City a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
(c) The Developer agrees to notify the City immediately in the case of damage
exceeding $250,000 in amount to, or destruction of, the Minimum Improvements or any portion
thereof resulting from fire or other casualty. Net Proceeds of any such insurance shall be paid
directly to the Developer, and the Developer will forthwith repair, reconstruct and restore the
Minimum Improvements to substantially the same or an improved condition or value as they
existed prior to the event causing such damage and, to the extent necessary to accomplish such
repair, reconstruction and restoration, the Developer will apply the Net Proceeds of any
insurance relating to such damage received by the Developer to the payment or reimbursement of
the costs thereof.
(d) The Developer shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether the Net Proceeds of insurance received by the Developer for
such purposes are sufficient.
(e) Nothing herein shall waive any of the defenses of governmental immunity available
to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now exists and as it may
be amended from time to time.
ARTICLE XI. ANNUAL CERTIFICATION
Section 11.1. Annual Certification. To assist the City in monitoring and performance of
the Developer hereunder, a duly authorized officer of the Developer shall annually provide to the
City: (a) proof that all ad valorem taxes on the Development Property have been paid for the
prior fiscal year; (b) proof of satisfaction of the insurance requirements in Article X; (c)
submission of the annual tenant housing report for the Off-site Affordable Housing Units
pursuant to Section 2.1(b) of this Agreement; and, (d) certification that such officer has re-
examined the terms and provisions of this Agreement and that at the date of such certificate, and
during the preceding twelve (12) months, the Developer is not, or was not, in default in the
fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or
event which, with the lapse of time or the giving of notice, or both, would become an Event of
Default) is occurring or has occurred as of the date of such certificate or during such period, or if
the signer is aware of any such default, event or Event of Default, said officer shall disclose in
such statement the nature thereof, its period of existence and what action, if any, has been taken
or is proposed to be taken with respect thereto. Such statement, proof and certificate, in the
form attached hereto as Exhibit M, shall be provided not later than November 1 of each year,
commencing November 1, 2019, and ending on November 1, 2027, both dates inclusive. Upon
certification by the Developer on or before November 1, 2019, the City will calculate an
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increment in accordance with the Ordinance, which establishes a base value as of January 1,
2016.
ARTICLE XII. ASSIGNMENT AND TRANSFER
Section 12.1. Status of the Developer; Transfer of Substantially All Assets. As security
for the obligations of the Developer under this Agreement, the Developer represents and agrees
that, prior to the issuance of the Certificate of Completion and prior to the Termination Date, the
Developer will maintain existence as an adequately -capitalized limited liability company and
will not wind up or otherwise dispose of all or substantially all of the Development Property and
Minimum Improvements, or assign its interest in this Agreement to any other party unless (i) the
transferee partnership, corporation, limited liability company or individual assumes in writing all
of the obligations of the Developer under this Agreement and (ii) the City consents thereto in
writing in advance thereof, in which case the Developer may be released of its obligations
hereunder. Notwithstanding the foregoing, however, or any other provisions of this Agreement,
(a) Developer may transfer its interest in and to this Agreement to any affiliate which is
controlled by, under common control with or controls Developer or to any entity that acquires
all or substantially all of the assets of the Developer or to any successor to Developer by
consolidation, merger, or otherwise, and (b) the Developer may (1) pledge any and/or all of its
assets as security for any financing of the Minimum Improvements; (2) assign its rights under
this Agreement to a third party, provided such assignment shall not release the Developer of its
obligations hereunder, and the City agrees in writing that Developer may assign its interest under
this Agreement for such purpose; and (3) the Developer may transfer its ownership interest to a
third -party under an arrangement whereby Developer will lease the Development Property back
and continue to satisfy the requirements of this Agreement.
ARTICLE.XIII. ECONOMIC DEVELOPMENT GRANTS
Section 13.1. Economic Development Grants. (a) For and in consideration of the
obligations being assumed by the Developer hereunder, and in furtherance of the goals and
objectives of the Urban Renewal Plan and the Urban Renewal Act, the City agrees to make up to
nine (9) annual Economic Development Grants to the Developer, subject to the Developer
having received a Certificate of Completion and being and remaining in compliance with the
terms of this Agreement and subject to the terms of this Article XIII. The annual grants shall
commence on June 1, 2021 and end on June 1, 2029, or when the total of all grants is equal to
$4,020,292, whichever is earlier. All annual grants shall be equal to one hundred percent (100%)
per fiscal year of the Tax Increments (unless the total grant amount of $4,020,292 is reached
first) collected by the City with respect to the Minimum Improvements on the Development
Property pursuant to Section 403.19 of the Urban Renewal Act under the terms of the Ordinance
(without regard to any averaging that may otherwise be utilized under Section 403.19 and
excluding any interest that may accrue thereon prior to payment to the Developer) during the
preceding twelve-month period in respect of the Development Property and the Minimum
Improvements, but subject to adjustment and conditions precedent as provided in this Article
(such payments being referred to collectively as the "Economic Development Grants").
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(b) The obligation of the City to make an Economic Development Grant to the
Developer in any year as specified above shall be subject to and conditioned upon the timely
filing by the Developer of all previous annual statements, proofs and certifications required
under Section 11.1 hereof and the City Manager's approval thereof, which will not be
unreasonably withheld. Beginning with the November 1, 2019 certification, if the Developer's
annual statement, proof and certification is timely filed and contains the information required
under Section 11.1 and the City Manager approves of the same, the City shall certify to the
County prior to December 1 of that year its request for the available Tax Increments resulting
from the assessments imposed by the County as of January 1 of that year, to be collected by the
City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to
the Developer on June 1 of the following fiscal year. (For example, if the Developer and the
City each so certify on November and December 2019, respectively, the first Economic
Development Grant would be paid to the Developer on June 1, 2021).
(c) In the event that the annual statement, proof or certificate required to be delivered .
by the Developer under Section 11.1 is not delivered to the City by November 1 of any year, the
Developer recognizes and agrees that the City may have insufficient time to review and approve
the same and certify its request for Tax Increments to the County and that as a result, no
Economic Development Grant may be made to the Developer in respect thereof. The City
covenants to act in good faith to appropriately review and consider any late certification on the
part of the Developer, but the City shall not be obligated to make any certification to the County
for the available Tax Increments or make any corresponding payment of the Economic
Development Grant to the Developer if, in the reasonable judgment of the City, it is not able to
give appropriate consideration (which may include, but not be limited to, specific discussion
before the City Council at a regular City Council meeting with respect thereto) to the
Developer's certification due to its late filing. In the event Developer fails to timely file an
annual statement, proof or certificate due to an Unavoidable Delay and, as a result, an Economic
Development Grant cannot be make, Developer may give written notice to the City and, if the
City finds that Developer's failure is due to an Unavoidable Delay, the missed Economic
Development Grant shall be made in the year succeeding the last scheduled Economic
Development Grant under Section 13. 1, subject to Developer's filing under Section 11.1 and 0
other provisions of this Article XIII with respect to such grant, it being the intention of the
parties to allow up to nine (9) annual Economic Development Grants in an aggregate amount not
to exceed $4,020,292, if Developer is in compliance with this Agreement.
(d) The total, aggregate amount of all Economic Development Grants under this
Agreement shall not exceed $4,020,292. Each Economic Development Grant shall be equal to
one hundred percent (100%) of all Tax Increments collected per fiscal year in respect of the
assessments imposed on the Development Property and Minimum Improvements as of January
1, 2019, and on January 1 of each of the following eight (8) years, until the total, aggregate of all
such Economic Development Grants equals no more than the sum of $4,020,292. The final grant
shall be adjusted, if necessary, if payment of 100% of Tax Increments for that grant would result
in total, aggregate Economic Development Grants in an amount exceeding $4,020,292. Such
Economic Development Grants shall at all times be subject to termination in accordance with the
terms of this Article XIII and Article XV. Thereafter, the taxes levied on the Development
Property and Minimum Improvements shall be divided and applied in accordance with the Urban
Renewal Act and the Ordinance. It is recognized by all parties that the total aggregate amount set
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forth above is a maximum amount only and that the actual payment amounts will be determined
after the Minimum Improvements are completed and the valuations of said Improvements have
been determined by the City Assessor.
(e) In the event that any certificate filed by the Developer under Section 11.1 or other
information available to the City discloses the existence or prior occurrence of an Event of
Default that was not cured or cannot reasonably be cured under the provisions of Article XV (or
an event that, with the passage of time or giving of notice, or both, would become an Event of
Default that cannot reasonably be cured under the provisions of Article XV), the City shall have
no obligation thereafter to make any further payments to the Developer in respect of the
Economic Development Grants and may proceed to take one or more of the actions described in
Article XV hereof.
Section 13.2. Source of Grant Funds Limited. (a) The Economic Development Grants
shall be payable from and secured solely and only by amounts deposited and held in the
AUGUSTA PLACE, LLC TIF Account of the City: The City hereby covenants and agrees to
maintain the Ordinance in force during the term hereof and to apply the incremental taxes
collected in respect of the Minimum Improvements and allocated to the AUGUSTA PLACE,
LLC TIF Account to pay the Economic Development Grants, as and to the extent set forth in
Section 13.1 hereof. The Economic Development Grants shall not be payable in any manner by
other tax increment revenues or by general taxation or from any other City funds.
(b) Notwithstanding the provisions of Section 13.1 hereof, the City shall have no
obligation to make an Economic Development Grant to the Developer if at any time during the
term hereof the City receives an opinion of its legal counsel or a controlling decision of an Iowa
court having jurisdiction over the subject matter hereof to the effect that the use of Tax
Increments resulting from the Minimum Improvements to fund an Economic Development Grant
to the Developer, as contemplated under said Section 13.1, is not authorized or otherwise an
appropriate project activity permitted to be undertaken by the City under the Urban Renewal Act
or other applicable provisions of the Code, as then constituted. Upon receipt of such an opinion
or decision, the City shall promptly forward a copy of the same to the Developer. If the
circumstances or legal constraints giving rise to the opinion or decision continue for a period
during which two (2) Economic Development Grants would otherwise have been paid to the
Developer under the terms of Section 13.1, the City may terminate this Agreement, without
penalty or other liability to the Developer, by written notice to the Developer.
(c) The City makes no representation with respect to the amounts that may finally be paid
to the Developer as the Economic Development Grants, and under no circumstances shall the
City in any manner be liable to the Developer so long as the City timely applies the Tax
Increments actually collected and held in the AUGUSTA PLACE, LLC TIF Account (regardless
of the amounts thereof) to the payment of the Economic Development Grants to the Developer,
as and to the extent described in this Article.
Section 13.3. Use of Other Tax Increments. Subject to this Article XIII, the City shall be
free to use any and all Tax Increments collected in respect of increases in valuation on the
Development Property unrelated to construction of the Minimum Improvements (i.e. increases in
assessed or actual value due to market factors) any other properties within the Project Area, or
Execution Version Page 27
any available Tax Increments resulting from the suspension or termination of the Economic
Development Grants under Section 13.1 hereof, for any purpose for which the Tax Increments
may lawfully be used pursuant to the provisions of the Urban Renewal Act, and the City shall
have no obligations to the Developer with respect to the use thereof.
ARTICLE XIV. INDEMNIFICATION
Section 14.1. Release and Indemnification Covenants.
(a) Except for any defect resulting from an action of the City or a third party after the
conveyance of the City Parking Condominium Unit and On -Site Affordable Housing Units to the
City pursuant to Article IX hereof, the Developer releases the City and the governing body
members, officers, agents, servants and employees thereof (hereinafter, for purposes of this
Article IXV, the "indemnified parties") from, covenants and agrees that the indemnified parties
shall not be liable for, and agrees to indemnify, defend and hold harmless the indemnified parties
against, any loss or damage to property or any injury to or death of any person occurring at or
about or resulting from any defect in the Minimum Improvements.
(b) Except for any willful misrepresentation or any willful or wanton misconduct or
any unlawful act of the indemnified parties, the Developer, or its successors or assigns, agrees to
protect and defend the indemnified parties, now or forever, and further agrees to hold the
indemnified parties harmless, from any claim, demand, suit, action or other proceedings
whatsoever by any person or entity whatsoever arising or purportedly arising from (i) any
violation of any agreement or condition of this Agreement (except with respect to any suit,
action, demand or other proceeding brought by the Developer against the City to enforce his
rights under this Agreement), (ii) the acquisition and condition of the Development Property and
the construction, installation, ownership, and operation of the Minimum Improvements (except
ownership and operation of the City Parking Condominium Unit and On -Site Affordable
Housing Units after conveyance of same to the City) or (iii) any hazardous substance or
environmental contamination located in or on the Development Property relating to conditions
caused by Developer after the effective date of this Agreement.
(c) The indemnified parties shall not be liable for any damage or injury to the persons
or property of the Developer or its officers, agents, servants or employees or any other person
who may be on or about the Minimum Improvements due to any act of negligence of any person,
other than any act of negligence on the part of any such indemnified party or its officers, agents,
servants or employees.
(d) All covenants, stipulations, promises, agreements and obligations of the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the City, and not of any governing body member, officer, agent, servant or
employee of the City in the individual capacity thereof.
(e) The provisions of this Article XIV shall survive the termination of this Agreement.
(f) Nothing herein shall waive any of the defenses of governmental immunity available
to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now exists and as it may
Execution Version Page 28
be amended from time to time.
ARTICLE XV. DEFAULT AND REMEDIES
Section 15.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term 'Event of Default' shall mean, whenever it is used in this
Agreement, any one or more of the following events:
(a) Failure by the Developer to cause the construction of the Minimum Improvements
to be commenced and completed, and the City Parking Condominium Unit and On-site
Affordable Housing Units to be conveyed to City pursuant to the terms, conditions and
limitations of Article II, V, VI and IX of this Agreement;
(b) Transfer of any interest in this Agreement or the assets of the Developer in
violation of the provisions of Article XII of this Agreement;
(c) Failure by the Developer to substantially observe or perform any covenant,
condition, obligation or agreement on its part to be observed or performed under this Agreement;
(d) If the holder of any Mortgage on the Development Property, or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default
under the applicable Mortgage documents;
(e) If the Developer shall:
(A) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act of 1978, as amended, or under any similar federal or state law; or
(B) make an assignment for the benefit of its creditors; or
(C) admit in writing its inability to pay its debts generally as they become due;
or
(D) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing
the adjudication of the Developer as a bankrupt or its reorganization under any present or future
federal bankruptcy act or any similar federal or state law shall be filed in any court and such
petition or answer shall not be discharged or denied within ninety (90) days after the filing
thereof; or a receiver, trustee or liquidator of the Developer or the Minimum Improvements, or
part thereof, shall be appointed in any proceedings brought against the Developer, and shall not
be discharged within ninety (90) days after such appointment, or if the Developer shall consent
to or acquiesce in such appointment; or
(f) If any representation or warranty made by the Developer in this Agreement, or
made by the Developer in any written statement or certificate furnished by the Developer
pursuant to this Agreement, shall prove to have been incorrect, incomplete or misleading in any
material respect on or as of the date of the issuance or making thereof.
Execution Version Page 29
Section 15.2. Remedies on Default. Whenever any Event of Default referred to in Section
15.1 of this Agreement occurs and is continuing, the City, as specified below, may take any one
or more of the following actions after (except in the case of an Event of Default under
subsections (d) or (e) of said Section 15.1 in which case action may be taken immediately) the
giving of thirty (30) days' written notice by the City to the Developer and the holder of the First
Mortgage (but only to the extent the City has been informed in writing of the existence of a First
Mortgage and been provided with the address of the holder thereof) of the Event of Default, but
only if the Event of Default has not been cured within said thirty (30) days, or if the Event of
Default cannot reasonably be cured within thirty (30) days and the Developer does not provide
assurances reasonably satisfactory to the City that the Event of Default will be cured as soon as
reasonably possible:
(a) The City may suspend its performance under this Agreement until it receives
assurances from the Developer, deemed adequate by the City, that the Developer will cure its
default and continue its performance under this Agreement;
(b) The City may terminate this Agreement;
(c) The City may withhold the Certificate of Completion;
(d) The City may take any action, including legal, equitable or administrative action,
which may appear necessary or desirable to enforce performance and observance of any
obligation, agreement, or covenant of the Developer, as the case may be, under this Agreement;
or
(e) The City shall be entitled to recover from the Developer, and the Developer shall
re -pay to the City, an amount equal to the most recent Economic Development Grant previously
made to the Developer under Article XIII hereof, and the City may take any action, including
any legal action it deems necessary, to recover such amount from the Developer.
Section 15.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
City is intended to be exclusive of any other available remedy or remedies, but each and every
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or
shall be construed to be a waiver thereof, but any such right and power may be exercised from
time to time and as often as may be deemed expedient.
Section 15.4. No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder.
Section 15.5. Agreement to Pay Attorneys' Fees and Expenses. Whenever any Event of
Default occurs under this Article XV and the party not in default shall employ attorneys or incur
other expenses for the collection of payments due or to become due or for the enforcement or
performance or observance of any obligation or agreement on the part of the party in default
herein contained, the party in default agrees that it shall, on demand therefor, pay to party not in
Execution Version Page 30
default the reasonable fees of such attorneys and such other expenses as may be reasonably and
appropriately incurred by the party not in default in connection therewith.
ARTICLE XVI. OPTION TO TERMINATE AGREEMENT
Section 16.1. Option to Terminate. Any time prior to the Closing Date established in
Section 4.5, this Agreement may be terminated by the Developer if (i) the Developer is in
compliance with all material terms of this Agreement and no Event of Default has occurred
which has not been cured in accordance with the provisions of Article XV hereof; and (ii) the
City fails to comply with any material term of this Agreement, and, after written notice by the
Developer of such failure, the City has failed to cure such noncompliance within thirty (30) days
of receipt of such notice, or, if such noncompliance cannot reasonably be cured by the City
within thirty (30) days of receipt of such notice, the City has not provided assurances reasonably
satisfactory to the Developer that such noncompliance will be cured as soon as reasonably
possible.
Section 16.2. Effect of Termination. If this Agreement is terminated pursuant to this
Article XVI, this Agreement shall be from such date forward null and void and of no further
effect; provided, however, that the City's rights to indemnification under Article XIV hereof shall
in all events survive and provided further that the termination of this Agreement shall not affect
the rights of any party to institute any action, claim or demand for damages suffered as a result of
breach or default of the terms of this Agreement by another party, or to recover amounts which
had accrued and become due and payable as of the date of such termination. In any such action,
the prevailing party shall be entitled to recover its reasonable attorney's fees and related
expenses incurred in connection therewith (but only, in the case of the City, to the extent
permitted by applicable law).
ARTICLE XVII. MISCELLANEOUS
Section 17.1. Conflict of Interest. The Developer represents and warrants that, to its best
knowledge and belief after due inquiry, no officer or employee of the City, or its designees or
agents, nor any consultant or member of the governing body of the City, and no other public
official of the City who exercises or has exercised any functions or responsibilities with respect
to the Project during his or her tenure, or who is in a position to participate in a decision-making
process or gain insider information with regard to the Project, has had or shall have any interest,
direct or indirect, in any contract or subcontract, or the proceeds thereof, for work or services to
be performed in connection with the Project, or in any activity, or benefit therefrom, which is
part of the Project at any time during or after such person's tenure.
Section 17.2. Notices and Demands. A notice, demand or other communication under this
Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt requested, or delivered personally,
and
(a) In the case of the Developer, to Jesse Allen, Augusta Place, LLC, 215 N.
Linn, Iowa City, IA 52245 (mailing address P.O. Box 3474, Iowa City, IA 52244).
Execution Version Page 31
(b) In the case of the City, to City Hall, 410 E. Washington Street, Iowa City,
Iowa, 52240, Attn: City Manager;
or to such other designated individual or to such other address as any party shall have furnished
to the other in writing in accordance herewith.
Section 17.3. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 17.4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 17.5. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Iowa.
Section 17.6. Entire Agreement. This Agreement and the exhibits hereto reflect the entire
agreement between the parties regarding the subject matter hereof, and supersedes and replaces
all prior agreements, negotiations or discussions, whether oral or written. This Agreement may
not be amended except by a subsequent writing signed by all parties hereto. On behalf of the
City, the City Manager is hereby authorized to amend, in writing, the timelines set forth in
Articles IV, V and VI as may be reasonably necessary in accordance with Section 6.5 herein.
Section 17.7. Successors and Assigns. This Agreement is intended to and shall inure to
the benefit of and be binding upon the parties hereto and their respective successors and assigns.
Section 17.8. Termination Date. With the exception of the Covenants regarding the Off-
site Affordable Housing Units in place for 20 years pursuant to Article II of this Agreement, this
Agreement shall terminate and be of no further force or effect on and after June 1, 2029, or upon
final payment of the Economic Development Grants, whichever is sooner.
Section 17.9 Administration of Agreement by City. The City Manager or designee shall
administer the rights and obligations of the City hereunder.
Section 17.10 Memorandum of Agreement. The parties agree to execute and record a
Memorandum of Agreement, in substantially the form attached hereto as Exhibit O, to serve as
notice to the public of the existence and provisions of this Agreement, and the rights and
interests held by the City by virtue hereof. The Developer shall pay all costs of recording.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City
Clerk, and the Developer has caused this Agreement to be duly executed in its name and behalf
by AUGUSTA PLACE, LLC.
(SEAL) CITY IOWAS.IT
By: GG
yor
Execution Version Page 32
ATTEST: Ap Ved by:
By: tec ? - 0-.)-,
Ci le City Attorney
- z8-/7
AUGU TA PLACE, LLC
By: '. -- 1 n--`_
J45se All , Manager
CITY OF IOWA CITY
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
On this 2.r`-af—day of2017 before me a Notary Public in
and for said County, personally appeared James A. Th on andJ0%e n to me
personally known, who being duly sworn, did say that they are the Mayor anCOV,
City C`m
respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under
the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of
said Municipal Corporation, and that said instrument was signed and sealed on behalf of said
Municipal Corporation by authority and resolution of its City Council and said Mayor and City
Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation
by it voluntarily executed.
STATE OF rU W A
COUNTY OF S HA16 ,I
Gc_C
Notary Public in and for the gate of Iowa
SS:
My
This instrument was acknowledged before me on this / day of 2017, by Jesse
Allen, as Manager of AUGUSTA PLACE, LLC.
MCCHRISTY
aA'� Commission Number 145459
^ - My ission Expires
Notary Pubfid iiTland for the State of
Execution Version Page 33
Exhibit A. Map of Urban Renewal Area
City -University Project 1 Urban Renewal Area
As Anninded
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Execution Version Page 34
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Execution Version Page 34
Exhibit B. Legal Description of Urban Renewal Area
1969 Original Area
Beginning at a point on the north R.O.W. line of Burlington Street where it meets the east bank
of the Iowa River; Thence easterly to the east R.O.W. line of vacated Front Street; Thence north
to the north R.O.W. line of vacated College Street; Thence east along said R.O.W. line to the
west R.O.W. line of Capitol Street; Thence north along said R.O.W. line to the centerline of
Washington Street; Thence east along said centerline to the centerline of Linn Street; Thence
south along said centerline to the south R.O.W. line of Court Street; Thence west along said
R.O.W. line to the east bank of the Iowa River; Thence northerly along the east bank to the point
of beginning.
2001 Amended Area
Beginning at the northwest comer of Lot 1 Lyman Cooks Subdivision of Outlot 25; Thence
south along the east R.O.W. line of Gilbert Street to the south R.O.W. line of Prentiss Street;
Thence west along said south R.O.W. line to its intersection with Linn Street; Thence
northeasterly along Ralston Creek to the west R.O.W. line of Maiden Lane; Thence north to the
south R.O.W. line of Court Street; Thence west along said south R.O.W. line to the centerline of
Linn Street; Thence north along said centerline to the centerline of Washington Street; Thence
west along said centerline to the west R.O.W. line of Clinton Street; Thence north along said
west R.O.W. line to the north R.O.W. line of Iowa Avenue; Thence east along said north R.O.W.
line to the east R.O.W. line of Gilbert Street; Thence south along said east R.O.W. line to the
point of beginning.
2012 Amended Area
Beginning at the NW comer of Outlot 26, Original Town Subdivision; Thence south along the
eastern R.O.W. line of Van Buren Street to where said R.O.W. ends at a point along the western
boundary of Block 8, Lyon's 2nd Addition; Thence northwesterly along R.O.W. line to a point
on the north R.O.W. line of the Iowa Interstate Railroad south of block 1, Lyon's 1 st Addition;
Thence southwesterly to the south R.O.W. line of the Iowa Interstate Railroad north of block 3,
Lyon's 1st Addition; Thence southeasterly along the south Railroad R.O.W. to the eastern
boundary of Van Buren Street south of the Railroad; Thence along said eastern boundary of Van
Buren Street to the north right-of-way line of Kirkwood Avenue; Thence east to a point 11' west
of the extended NE corner of lot 3, block 6, F.S. & E.W. Lucas Addition; Continuing south to a
point 126', more or less, south of the R.O.W. line of the E -W alley west of Diana Street and
south of lots 1, 2, and 3, block 6, R.S. Lucas Addition; Thence westerly to a point on the east
R.O.W. line of the N -S alley west of lots 4 & 5, block 6, R.S. Lucas Addition; Crossing the alley
to the west R.O.W. line of said alley, continue south 7.5', more or less, to the NE corner of lot
30, Highland Park Addition; Thence westerly to the NW corner of lot 31, Highland Park
Addition; Thence southerly to the SW comer of said Lot 31; Crossing Highland Ct. to the NE
corner of Lot 15 Highland Park Addition; Thence southerly to the SE corner of Lot 9 Highland
Park Addition; Crossing Highland Ave, to the south R.O.W. line; Thence westerly along said
south R.O.W. line to where it meets the Crandic Railroad; Thence south along the Crandic
Railroad to the south R.O.W. line of Highway 6; Thence west along the south R.O.W. line of
Highway 6 to the eastern bank of the Iowa River; Thence southerly following said eastern bank
of the river to a point where the river bank meets the extended southern line of Sturgis Ferry
Park; Thence westerly to the SW corner of Sturgis Ferry Park; Thence continuing westerly to the
Execution Version Page 35
west R.O.W. line of Riverside Drive; Thence northerly along said west R.O.W. line to the
centerline of Highway 6; Thence easterly along said centerline to the western bank of the Iowa
River; Thence following the western bank of the Iowa River to the centerline of Myrtle Street
extended to the Iowa River; Thence west to the west R.O.W. line of Riverside Drive/State
Highway 1; Thence northerly along said highway R.O.W. to the north R.O.W. line of Burlington
Street; Thence east to the east bank of the Iowa River; Thence south to the south R.O.W. line of
Court Street; Thence easterly along the south R.O.W. line of Court Street to the west R.O.W. line
of Maiden Lane; Thence south along said west R.O.W. line to Ralston Creek; Thence
southwesterly along the creek to the south R.O.W. line of Prentiss Street; Thence east along said
south R.O.W. line to the west R.O.W. line of Gilbert Street; Thence south along said west
R.O.W. line to a point where it meets the extended centerline of Bowery Street; Thence easterly
to a point where the centerline of Bowery Street meets the extended east R.O.W. line of Gilbert
Street; Thence north along said east R.O.W. line to the northwest corner of Lot 1 Lyman Cooks
Subdivision of Outlot 25; Thence east along the south R.O.W. line of Burlington Street to the
point of beginning. Also including Lots 5 and 6 in Block 43, Original Town, and the alley and
full width of the College Street right-of-way adjacent thereto.
2016 Amended Area
Beginning at a point on the north R.O.W. line of Iowa Ave where it intersects with the east
R.O.W line of Gilbert Street; Thence east along said Iowa Avenue north R.O.W. line to a point
where it intersects with the east R.O.W. line of Van Buren Street; Thence south along said Van
Buren Street east R.O.W. line south to a point where it intersects with the south R.O.W. line of
Washington Street; Thence west along said Washington Street south R.O.W. line west to a point
where it intersects with the east R.O.W. line of S. Gilbert Street; Thence north along the east
R.O.W. line of Gilbert Street north to the point of beginning.
Execution Version Page 36
Exhibit C. Legal Description of Development Property
Lots 1-4, and the north 10' of the alley adjacent thereto, Block 44, Original Town of Iowa City,
Iowa, according to the Plat thereof.
Execution Version Page 37
Exhibit C-1. Legal Description of City Property
Lots 1-3, the south 40 feet of Lot 4, and the north 10' of the alley adjacent thereto, Block 44,
Original Town of Iowa City, Iowa, according to the plat thereof.
Execution Version Page 38
Exhibit C-2. Legal Description of Church Property
Lot 4, except the south 40 feet thereof. Block 44, Original Town of Iowa City, Iowa, according
to the plat thereof.
Execution Version Page 39
Exhibit D. Minimum Improvements and Uses
Developer shall complete the following minimum improvements and uses on the
Development Property in accordance with the Development Agreement to which this Exhibit D
is attached and as detailed in Exhibit E — Concept Plan dated April 10, 2017 attached hereto and
incorporated herein. The project will consist of a building with a height of seven (7) stories and
four (4) stories as shown on Exhibit E with the following components:
1. Parking structure. A two level parking structure will provide covered parking for the City's
use on the ground level (approximately 60 spaces) and one level of parking above for residential
parking (approximately 57 spaces). The structured parking will be cast in-place concrete and
have adequate exterior openings so as to not require mechanical ventilation of this space. All
parking areas will be well lit with LED fixtures. Stair and elevator access will be provided at
both the east and west side of the parking structure.
a. On -Grade Parking: The City Parking Condominium Unit shall consist of 55 non -
compact sized spaces on the ground level of the parking structure and 5 non -compact sized
spaces along the exit drive to Gilbert Street for a total of 60 spaces. The entry and exit to the
parking facility will be from the alley on Van Buren Street. The main covered parking area
measures approximately 187.5' x 116.25'. An additional vehicular access to Gilbert Street will
be provided for use by City vehicles only, except as otherwise authorized by the City Manager or
designee. Any changes to the number and location of spaces must be approved by the City
Manager or designee prior to construction. It is anticipated that this aspect of the Project will
include the work detailed as "On Grade Parking" in Exhibit D-1. Specifications of
improvements, including but not limited to LED lighting, shall be consistent with other City
parking facilities and must be approved by the City Manager or designee.
2. Fire station entry and modifications to City Hall. Developer will modify the City Hall
northern entrances, loading dock, enclosed dumpster area, and the 2nd floor Fire Station outdoor
balcony in general conformance with the Conceptual Renderings attached to the Agreement as
Exhibit E. It is anticipated that this aspect of the Project will include the work detailed as "FS
Entry & Loading Dock" in Exhibit D-1.
The new balcony will have as much useable space (space available for persons not
occupied by equipment) as that existing on the current balcony (288 square feet (12' by 24')),
and will serve as a covered walk to the new northwest entrance to City Hall. Developer will
install signage indicating the Fire Station entrance over the walk which will be visible from
Gilbert Street. Access to the City generator, and any similar equipment that is located on the
balcony, must be approved by the City Manager or designee. The final plan for the Fire Station
entrance, including signage, and balcony must be approved by the City's staff design review
committee.
3. Townhomes. A total of 26 Townhome-style residential units will provide a visual screen
to the parking structure from the Iowa Avenue and Van Buren Street frontages. Townhomes will
be two stories each, stacked upon each other for a four story building height lining the parking
structure. Each townhome will have its own front door access from the street, and back door
access from the parking structure.
Execution Version Page 40
4. Apartments. A total of 100 apartment units will be built on levels 3 through 7 above the
parking structure. There will be 6 one -bedroom, 67 two-bedroom and 18 three-bedroom units.
The 6 one -bedroom units to be purchased by the City (On-site Affordable Housing Units) shall
be approximately 550 square feet. Changes to the unit mix may be approved by the City
Manager or designee.
5. Terrace. An outdoor terrace, of an area approximately 187' by 62,' will be constructed
above the parking garage on the same level as the lowest floor of apartments and the third level
of townhomes. The outdoor terrace will be accessible to all residents of the building and include
a well-maintained mix of plant material and patio amenities such as seating.
6. Preservation of Church. Developer shall seek the rezoning of the former Unitarian
Universalist Church to a historic designation under the City Code and shall perform certain
repairs, upgrades and maintenance obligations. Repair and upgrades to the church shall include:
1) repair of damage done when the connection between the church and the education building
was removed; repair shall be of similar building materials and blend seamlessly with the historic
building; 2) replacement of the heating, ventilation and air-conditioning systems for entire
building; and, 3) making the building accessible by installing an elevator serving each floor and
adding accessible restrooms. The Developer will remodel the Church for reuse by one or more
commercial endeavors.
7. Utility connections. The Developer will be responsible for relocating any utilities or
infrastructure in the project area that are impacted by the project. This includes, but is not limited
to, water, sanitary and storm sewer, electric, communication and fiber optic lines.
8. Streetscape enhancements. Sidewalks will be relocated slightly northward along the Iowa
Avenue frontage to provide more area for planting and to enhance green space in front of each
townhome unit. This realignment will require the Developer to replace street trees between the
sidewalk and the curb and provide additional tree plantings near the townhome entries. The
species, location and number of new street trees on Gilbert, Iowa and Van Buren shall be
approved by the City Manager or designee. Such trees shall be a minimum 2.5" caliper. Any use
of the City right-of-way for planting or otherwise by the residents of the townhomes requires the
approval of the City in accordance with City Code.
9. Solar Power. The Developer is exploring the feasibility of the use of solar energy on site
and will incorporate solar into the Project if feasible as determined by the Developer and as
approved by the City Manager or designee.
Execution Version Page 41
Exhibit D-1. On-Grade Parking and Fire Station Entry and Loading Dock Report
McComas-Locina construction
Spreadsheet Report Page 1
Scott Wiley
On Grade Parking 211312017 12:17 PM
Phase
Deseripllon
Total Amount
DEMOLITION
2071.01
Demo: General
Parking Lot DomolBulldmg Demo
45,600
SITEWORK
2200.00
Earthwork
Grading/Cut 8 t dl
72,000
2510.01
Paving: Sidewalks
Sidwa'.ks
13,500
2513.00
Paving: Concrete
Concrete Paving (sqyd)
153,365
Granular Subbase (6")
28,339
2584,00
Paving: Parking Lines
Parking Llnos
2,400
2600.00
Site Utilities
Site ull,itles
76,800
2800.00
Site Improvements
Slle Improvements (BencheslrrastclElc) 16.000
2900.01
Landscape: General
Landscaping
50,600
ELECTRICAL
16001.00
Electrical Complete
Electrical (Lump Sum)
80,000
Execution Version Page 42
McComas-Lacina Construction Spreadsheet Report Page 2
Scott Wiley On Grade Parking 2/13/2017 12:17 PIA
Ertimete lotale
VC2CIIJAIOII
Amount
TOrolu Roto
Labor
248,7.94
Material
63,909
Subcontract
225,2.00
E4Ulnmenl
Other
537.403
537,403
Inswance
1,075
2 000 $,1,000
Pedotmanr Maymen12002
5,087
Sales Tax
4,474
7.000 %
Fee
54,804
10.000 %
Total
602.643
Execution Version Page 43
McComas-Lacina Construction Spreadsheet Report
Scott Wiloy, FS Entry 8 Loading Dock
Phase
Description
Total Amount
DEMOLITION
_
2071.01
Demo: General
Demo Entrance
12,000
Demo Loading Dock
14,000
Dema Dumpstor Storage
5,500
Demo DecklGenerelor Enclosure
3,500
PavingMlisc Derrio
5,000
SITEWORK
2510.01
Paving: Sidewalks
Sidewalks
1,575
2513.00
Paving: Concrete
Concrete Paving (sgyd)
4,600
2900.01
Landscape: General
Landscaping
5,000
CONCRETE
3100.00
Concrete Items
Loading Dock/Ramp/Entry
34,000
3400.40
Precast Concrete
Concrete Precast Deck (sgft)
5,835
Topping on Precast
1,800
MASONRY
4000.01
Division 4 Subcontractors
Building Entrance — Block/Brick (Total Structure)
78,750
Dumpster Enclosure
21,760
METALS
5500.00
Metal Fabrications
Metal Frames for Precast DecklWalkway
18,000
Metal Guardrail @ Deck
3,375
ELECTRICAL
16001.00
Electrical Complete
Generator Relocate/Bullding Entry/Site Lights
60,000
Pago 1
2/13/2017 12:13 PM
Execution Version Page 44
McComas-Lacina Construction Spreadsheet Report Page 2
Scott Wiley FS Entry 8 Loading Dock _ V1312017 12:13 PM
Estimate Totals
noscrlption
Amount
Totals Rete
Labor
149,735
Material
59.960
Subcontract
65,000
Equipment
Other
274,695
274,695
Insurance
549
2 000 $,1.000
Performance/Payment 2002
2,731
Sales Tax
4,197
7.000%
Fee
28,217
10.000%
Total
310,389
Execution Version Page 45
Exhibit E. Concept Plan
April 10, 2017
Conceptual Renderings
View facing southeast from the intersection of Gilbert Street and Iowa Avenue
Execution Version Page 46
Conceptual Renderings
View facing city hall from panting garage -- Ness entrance vestibule to toe s'�st,on
Oock
Execution Version Page 47
h° x
Conceptual Plans
Overview
Level 7
Level
Level 5
Level
Level 3
Level 2
Level 1 _
v A�
LEVEL 01 - PARKING 8 TOWNNOMES
1" = 50'-n
Execution Version Page 49
IOWA AVENUE
OT N L
LEVEL 02 - PARKING 8 TOWNHOMES
1" = 50.0.
LEVEL 03 - APARTMENTS 8 TOWNHOML:
= 50'-0'
i
Execution Version Ngc 50
LEVEL 04 - APARTMENTS S TOVMHOMES
LEVEL 5-APARTMENT5
11 T 0. 0,.
Execution Version Page 51
LEVELS -APARTMENTS
------------- ------- - -- - - -
LEVEL 7 -APARTMENTS
7"=50'0"
Execution Version Page 52
Exhibit G. Wage Theft Affidavit
STATE OF IOWA )
) SS:
JOHNSON COUNTY)
Jesse Allen, upon being duly sworn, states as follows:
1. I am the Manager of Augusta Place, LLC
("Developer)) and have the authority to execute this affidavit on behalf of Developer and any
person or entity with an ownership interest in Developer of more than 25%.
2. Neither Developer nor any person or entity with an ownership interest of more than 25% of
said contracting entity has been adjudicated guilty or liable in any judicial or administrative
proceeding of committing a repeated or willful violation of the Iowa Wage Payment Collection
law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act or any comparable
state statute or local ordinance, which governs the payment of wages in the last 5 years.
This instrument was acknowledged before me Jesse Allen on
,20
day of
Notary Public in and for the State of Iowa
Execution Version Page SS
Exhibit H. Temporary Construction and Crane Swing Easement Agreement
TEMPORARY CONSTRUCTION AND CRANE SWING EASEMENT AGREEMENT
This Agreement is made by and between Augusta Place, LLC, hereinafter "Developer" and
the City of Iowa City, Iowa, a municipal corporation, hereinafter referred to as "City."
WHEREAS, Augusta Place, LLC is the fee owner of certain real estate addressed as and legally
described as Lots 1-4 and the north 10' of the alley adjacent thereto, Block 44, Original Town,
Iowa City, Iowa ("Development Property"); and
WHEREAS, Developer desires to develop the Development Property with an in -fill construction
project informally called "Augusta Place", in Iowa City, which will include modifications to City
Hall to accommodate modifications to the Fire Station entrance, vestibule, and loading dock
improvements; and
WHEREAS, Developer and the City have entered into an Agreement for the Private
Development of said property, with a memorandum of said agreement having been recorded with
the Johnson County Recorder in Book , Page _ on 20_ ("Agreement for
Development");
WHEREAS, pursuant to said Agreement for Development and in order to accomplish the
Minimum Improvements described therein, including the improvements to City Hall, a
temporary construction easement is necessary.'
NOW, THEREFORE, IN MUTUAL CONSIDERATION OF THE PROMISES HEREIN, THE
DEVELOPER AND THE CITY AGREE AS FOLLOWS:
1. In consideration of Developer's promises herein, the City agrees to allow Developer to
temporarily fence and close that area shown on Exhibit —attached hereto and incorporated
herein, pursuant to the limitations set forth in this easement agreement and the Agreement for
Development. The City further agrees to convey to Developer a temporary construction easement
in, over and across that portion of City's property described and shown in Easement Exhibit A for
the purpose of facilitating the Developer's demolition of those items listed in Exhibit D-1 of the
Agreement and construction of a new entryway, vestibule, balcony, loading dock and screened
solid waste dumpster as shown on the Concept Plan attached as Exhibit E to the Agreement, the
granting of which shall include necessary grading, excavation, piling of dirt, grading, restoration,
storage of materials and equipment, and ingress and egress of persons and equipment to the
Temporary Easement Area, as needed to complete said improvements.
2. In consideration of the rights granted by the City herein, Developer agrees to:
a. secure the temporary easement area shown in Exhibit A against vehicular or pedestrian
traffic by providing adequate pedestrian passage, adequate traffic control, by providing
adequate signage, and by securing all open excavations from pedestrians, thereby ensuring
public safety; and
Execution Version Page 56
b. Use its best efforts to minimize the disruption to the operation of the municipal functions
of the City of Iowa City, particularly those of the Fire Department. To that end, a staging
and phasing schedule shall be approved by the City Manager or designee and strictly
adhered to.
3. City of Iowa City, Iowa hereby further grants a temporary air rights license to Augusta
Place, LLC, its agents, employees, construction managers, contractors, sub -contractors and
consultants to enter over and encroach upon the Property described in Exhibit during the
time needed for completion of the Project to allow tower cranes to operate, extend, rotate and
swing over the Air Rights Area of said Property, as further described, depicted and defined in
Exhibit _. The crane encroachment permitted hereby is limited solely to the encroachment of
the boom over the Air Rights Area and the Property and does not include the right to carry any
loads over or across the Air Rights Area or the Property. The boom shall be of sufficient height
so that it does not interfere with any improvements located on the Property. The temporary air
rights license granted herein shall terminate upon the earlier of (i) completion of the construction
activities on the Property which require the use of the cranes, or (ii) June 1, 2019.
4. Redeveloper shall be responsible for the removal, storage, and replacement of items
located within the easement which could be damaged during the construction. Items include, but
are not limited to
5. Developer agrees to indemnify, defend and hold the City harmless against any and all
claims for bodily injury, death or property damage arising out of its actions and use of the public
right-of-way under this Agreement, and those of its contractors, subcontractors, agents,
employees and assigns specifically including any and all claims and/or liabilities which may be
alleged against the City as a result of its decision to grant Developer the rights granted herein.
Developer further agrees to carry Class II liability insurance in the minimum amounts of
$500,000 each occurrence, $1 million aggregate bodily injury, and $250,000 aggregate property
damage with contractual liability coverage included. Developer shall furnish a certificate of
insurance evidencing said valid insurance coverage to City, which certificate must be satisfactory
to the City. Developer shall submit a certificate of insurance to the City prior to the
commencement of construction.
6. As soon as reasonably feasible, Developer agrees to restore any and all portions of the
easement area in accordance with the plans approved by the City to the satisfaction of the City. If
Developer fails to restore the easement area to the City's satisfaction as required in this
paragraph, the City may restore the easement area, and the cost thereof shall be billed to
Developer for payment to City. Upon Developer's failure to pay said billing, the removal costs
shall be certified to Johnson County as a statutory lien and assessed against the Development
Property and collected in the same manner as a property tax, as provided in Section 364.12(2)(e),
Iowa Code (2017).
7. City and Developer agree this Temporary Agreement shall remain in effect until
completion of the Project and restoration of the easement area pursuant to Section 6 herein, with
an anticipated commencement and completion date as set forth in Section 5.1 of the
Development Agreement described above.
Execution Version Page 57
8. Notwithstanding the above, Developer agrees to cease and desist its temporary use and
closure of the easement area and to remove any and all obstructions from said easement area
when any one of the following events occur: a) breach of this Agreement or b) breach of the
Development Agreement.
9. This Agreement shall constitute a covenant running with the land, and shall be binding
upon and shall inure to the benefit of the respective heirs, successors in interest, and assigns of
both parties.
10. This Temporary Construction Easement Agreement shall be recorded in the Johnson
County Recorder's Office, at Developer's expense.
Dated this day of 20_
CITY OF IOWA CITY Augusta Place, LLC
Mayor
Approved by:
City Attorney's Office
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
Jesse Allen, Manager
On this day of , 20. before me a Notary Public in
and for said County, personally appeared and , to me personally
known, who being duly swom, did say that they are the Mayor and City Clerk, respectively of
the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the
State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal
Corporation, and that said instrument was signed and sealed on behalf of said Municipal
Corporation by authority and resolution of its City Council and said Mayor and City Clerk
acknowledged said instrument to be the free act and deed of said Municipal Corporation by it
voluntarily executed.
Notary Public in and for the State of Iowa
Execution Version Page 58
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 20_, by Jesse
Allen, as Manager of Augusta Place, LLC
Notary Public in and for the State of Iowa
Execution Version Page 59
Exhibit I. Opinion of Counsel
City of Iowa City
410 E. Washington Street
Iowa City, Iowa 52240
RE: Agreement for Private Redevelopment by and between the City of Iowa City,
Iowa and Augusta Place, LLC
Dear City Representatives:
I have acted as counsel for Augusta Place, LLC., an Iowa limited liability company (the
"Developer"), in connection with the execution and delivery of a certain Agreement for Private
Development (the "Development Agreement") between the Company and the City of Iowa City,
Iowa (the "City") dated as of 2017.
I have examined the original certified copy, or copies otherwise identified to my
satisfaction as being true copies, of the following:
(a) The organization and operating agreement of the Developer;
(b) Resolutions of the Developer at which action was taken with respect to the
transactions covered by this opinion;
(c) The Development Agreement;
and such other documents and records as I have deemed relevant and necessary as a basis for the
opinions set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries as I have
deemed appropriate, I am of the opinion that:
1. The Developer was duly organized and validly exists as a limited liability
company under the laws of the State of Iowa and is qualified to do business in the State of Iowa.
The Developer has full power and authority to execute, deliver and perform in full the
Development Agreement; and the Development Agreement was duly and validly authorized,
executed and delivered by the Company and, assuming due authorization, execution and delivery
by the City, is in full force and effect and is a valid and legally binding instrument of the
Developer enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights
generally.
2. The execution, delivery and performance by the Developer of the Development
Agreement and the carrying out of the terms thereof, will not result in violation of any provision
of, or in default under, the articles of organization and operating agreement of the Developer or
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute,
Execution Version Page 60
rule, regulation or restriction to which the Developer is a party or by which it or its property is
bound or subject.
3. There are no actions, suits or proceedings pending or threatened against or
affecting the Developer in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could materially
adversely affect the business (present or prospective), financial position or results of operations
of the Developer or which in any manner raises any questions affecting the validity of the
Agreement or the Developer's ability to perform its obligations thereunder.
Sincerely,
Execution Version Page 61
Exhibit J. Promissory Note
For value received, Augusta Place, LLC (hereinafter "Borrower"), whose home office is
located at 'Iowa, _, promises to pay the City of Iowa City
(hereinafter "City"), a municipal corporation whose address is 410 E. Washington Street, Iowa
City, Iowa 52240 the principal amount of $650,831.00, plus interest thereon at the rate of 3.84%
per annum in the manner described below.
This Promissory Note (hereinafter "Note") is evidence of a debt running from Borrower to
City resulting from a loan from the City in the Principal Amount $650,831.00 and interest
accruing at the rate of 3.84% per annum, pursuant to an AGREEMENT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA, AND
AUGUSTA PLACE, LLC, dated 2017, (hereinafter "Agreement") a
Memorandum of said Agreement being recorded on 2017 in Book , Page
of the records of the Johnson County, Iowa, Recorder, and constitutes Borrower's promise
to repay said loan according to the terms and conditions stated in said Agreement and this Note.
Term: Borrower shall not be obligated to make payments toward the Principal Amount or
interest if Borrower satisfies the terms of the Agreement. If Borrower does not complete the
Minimum Improvements, as defined in the Agreement, and a Certificate of Completion is not
issued in accordance with Section 6.6 of the Agreement, the Principal Amount and interest shall
become immediately due and payable. If Borrower fulfills the terms of the Note and a Certificate
of Completion is issued, the City shall forgive the Note in full.
Interest: Interest shall begin to accrue on the date of this Note and shall be computed on the
basis of 365 days per year and calculated on a daily rate.
Payment Location: All payments shall be made to the City of Iowa City at 410 E. Washington
Street, Iowa City, IA 52240 or at such other place as may be designated in writing by the City.
BORROWER:
BY:
Signature
Printed Name
Title
DATE:
Execution Version Page 62
Exhibit K. Minimum Assessment Agreement
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of
2017, by and among the CITY OF IOWA CITY, IOWA, ("City"),
Augusta Place, LLC, an Iowa limited liability corporation, ("Developer"), and the CITY
ASSESSOR of the City of Iowa City, Iowa ("Assessor").
WITNESSETH:
WHEREAS, it is contemplated that the Developer will undertake the development of an
area ("Project") within the City and within the "City -University Urban Renewal Area," as
amended; and
WHEREAS, the City is making a significant grant of funds to the developer which will
allow the Developer to construct the Project; and
WHEREAS, the City will be reimbursed for such grant from the property tax revenues
generated from the Project; and
WHEREAS, pursuant to Iowa Code section 403.6 (2017), as amended, the City and the
Developer desire to establish a minimum actual value for the land legally described in Exhibit C
to the Agreement for Private Development; and
WHEREAS, the City and the Assessor have reviewed the preliminary plans and
specifications for the Minimum Improvements to be erected as a part of the development;
NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in
consideration of the promises, covenants and agreements made by each other, do hereby agree as
follows:
1. As of January 1, 2020, a full assessment shall be made fixing the minimum actual
taxable value for assessment purposes for the land and Minimum Improvements to be
constructed thereon by the Redeveloper at not less than $14,384,905 after taking into
consideration any factors such as "roll backs" which would reduce the taxable value of the
property ("Minimum Actual Value"). The parties hereto acknowledge and agree that
construction of the Minimum Improvements will be substantially completed on or before June 1,
2019.
2. The Developer contemplates that a portion of the Project will be residential
condominium units which will be subject to the property tax "roll -back" referred to previously.
The Redeveloper agrees that at the time of the execution of the declaration required by Chapter
499B Horizontal Property (Condominiums) of the Code of Iowa (2017) an attachment to the
declaration will be executed by the Redeveloper, the City and the City Assessor allocating a
portion of the Minimum Actual Value to each unit.
3. The Redeveloper agrees that the difference between the Minimum Actual Values
(as adjusted pursuant to paragraph 3 hereof) and the amount allocated to the residential
Execution Version Page 63
condominium units (as set forth in paragraph 4 hereof) will be allocated to the remainder of the
Project.
4. The Minimum Actual Values (as adjusted pursuant to paragraph 3 hereof) herein
established shall be of no further force and effect and this Minimum Assessment Agreement
shall terminate on December 31, 2023.
Nothing herein shall be deemed to waive the Developer's rights under Iowa Code section
403.6(19) (2017), as amended, to contest that portion of any actual value assignment made by the
Assessor in excess of the Minimum Actual Values (as adjusted pursuant to paragraph 3 hereof)
established herein. In no event, however, except as set forth in the first paragraph of this Section
6 shall the Redeveloper seek to reduce the actual value assigned below the Minimum Actual
Value (as adjusted pursuant to paragraph 2 and 3 hereof) established herein during the term of
this Agreement.
5. This Minimum Assessment Agreement shall be promptly recorded by the
Developer with the Recorder of Johnson County, Iowa, at Developer's expense.
6. Developer has provided a title opinion to the City listing all lienholders of record
as of the date of this Assessment Agreement and all such lienholders have signed consents to this
Assessment Agreement, which consents are attached hereto and made a part hereof.
7. Neither the preambles nor provisions of this Minimum Assessment Agreement are
intended to, or shall be construed as, modifying the terms of the Agreement for Private
Development between the City and Developer.
8. This Minimum Assessment Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the parties.
(SEAL) CITY OF IOWA CITY, IOWA
By:
Mayor
ATTEST:
By:
City Clerk
Augusta Place, LLC
By:
Execution Version Page 64
ATTEST:
Lo
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
On this day of , 20_, before me a Notary Public in
and for said County, personally appeared and r, to me personally known,
who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of
Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of
Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal
Corporation, and that said instrument was signed and sealed on behalf of said Municipal
Corporation by authority and resolution of its City Council and said Mayor and City Clerk
acknowledged said instrument to be the free act and deed of said Municipal Corporation by it
voluntarily executed.
Notary Public in and for the State of Iowa
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 20� by
as Manager of Augusta Place, LLC.
Notary Public in and for the State of Iowa
Execution Version Page 65
CERTIFICATION OF ASSESSOR
The undersigned, having reviewed the plans and specifications for the Minimum
Improvements to be constructed and the market value assigned to the land upon which the
Minimum Improvements are to be constructed for the development, and being of the opinion that
the minimum market value contained in the foregoing Minimum Assessment Agreement appears
reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the property subject to the development, upon completion of Minimum
Improvements to be made on it and in accordance with the Minimum Assessment Agreement,
certifies that the actual value assigned to such land, building and equipment upon completion of
the redevelopment shall not be less than $ after taking into consideration any
factors such as "roll -backs" which would reduce the taxable value of the property. Of this
amount.
Dollars ($ ) is
determined to be the value of the land and Dollars
($ ) the value of the buildings thereon until termination of this Minimum
Assessment Agreement pursuant to the terms hereof.
Assessor for Iowa City, Iowa
Date
STATE OF IOWA )
) SS:
COUNTY OF JOHNSON )
Subscribed and sworn to before me by , Assessor for
Iowa City, Iowa.
Notary Public in and for Johnson County, Iowa
Date
Execution Version Page 66
Exhibit L. Reserved
Execution Version Page 67
Exhibit M. Annual Certification
Date:
(due annually no later than November 1)
I, , the undersigned, having knowledge of the Developer's Agreement between
the City of Iowa City and Augusta Place, LLC, dated 2017, and the operations of
the Development Property, hereby certify the following;
1. All ad valorem taxes on the Development Property have been paid for the prior fiscal
year, as evidenced by the attached documentation; and
2. (A) I have re-examined the terms and provisions of the Development Agreement and
can affirm that during the preceding twelve (12) months, the Developer is not, or was not, in
default in the fulfillment of any of the terms and conditions of said Agreement (including but not
limited to the affordable housing requirements of Section 2.1(b) thereof) and that no Event of
Default (or event which, with the lapse of time or the giving of notice, or both, would become an
Event of Default) is occurring or has occurred as of the date of this certificate.
OR
(B) the undersigned has re-examined the
Agreement and that at the date of this certificate,
in default of the Agreement
terms and provisions of the Development
the undersigned is aware that the Developer is
for the following reasons:
; that the
default has existed since (date); and that the Developer is taking or proposes to take
the following action with respect thereto:
AUGUSTA PLACE, LLC
M
Execution Version Page 68
Exhibit N. Legal Description of Off-site Affordable Housing Units
Units 1-12, inclusive, 104 West Side Condominiums according to the Declaration
of Submission to Horizontal Property Regime recorded December 22, 2010 in
Book 4701, Pages 313-364, inclusive, in the records of the Recorder of Johnson
County, Iowa.
Execution Version Page 69
Exhibit O. Memorandum of Agreement
WHEREAS, the City of Iowa City, Iowa (the "City") and Augusta Place, LLC (the
"Developer"), did on or about the —day of 2017, make, execute and deliver
an Agreement for Private Development (the "Agreement'), wherein and whereby the Developer
agreed, in accordance with the terms of the Agreement and the City -University Urban Renewal
Plan, as amended (the "Plan"), to develop certain real property located within the City and within
the City -University Urban Renewal Area, as amended and as more particularly described as Lots
1-4 and the north 10' of the alley adjacent thereto, Block 44, Original Town, Iowa City, Iowa
("Development Property"); and
WHEREAS, the term of this Agreement shall commence on the and,
with the exception of the Covenants regarding the Off-site Affordable Housing Units in place for
20 years pursuant to Article II of the Agreement, shall terminate and be of no further force or
effect on and after June 1, 2029, or upon final payment of the Economic Development Grants,
whichever is sooner.
WHEREAS, the City, and the Redeveloper desire to record a Memorandum of the
Agreement referring to the Development Property and their respective interests therein.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. That the recording of this Memorandum of Agreement for Private Development
shall serve as notice to the public that the Agreement contains provisions restricting
redevelopment and use of the Development Property and the improvements located and operated
on such Development Property, and further subjects the Development Property to a Minimum
Assessment Agreement entered into under the authority of Iowa Code Chapter 403, in which the
City and the Developer (and any successors or assigns) agree that, as of January 1, 2020, a full
assessment shall be made fixing the minimum actual value of the Development Property and all
improvements located thereof for calculation of real property taxes at not less than $14,384,905
after taking into consideration any factors such as "roll -backs" which would reduce the taxable
value of the property; and that certain condominium units located within the Development
Property be dedicated to particular uses.
2. That the Agreement imposes certain affordable housing requirements as set forth
therein, for a period of 20 years beginning on on the property legally -described
as follows:
Units 1-12, inclusive, 104 West Side Condominiums according to the Declaration
of Submission to Horizontal Property Regime recorded December 22, 2010 in
Book 4701, Pages 313-364, inclusive, in the records of the Recorder of Johnson
County, Iowa.
3. That all of the provisions of the Agreement and any subsequent amendments
thereto, if any, even though not set forth herein, are by the filing of this Memorandum of
Agreement for Private Development made a part hereof by reference, and that anyone making
any claim against any of said Property in any manner whatsoever shall be fully advised as to all
Execution Version Page 70
of the terms and conditions of the Agreement, and any amendments thereto, as if the same were
fully set forth herein.
4. That a copy of the Agreement and any subsequent amendments thereto if any,
shall be maintained on file for public inspection during ordinary business hours in the office of
the City Clerk, City Hall, 410 E. Washington Street, Iowa City, Iowa.
IN WITNESS WHEREOF, the City and the Developer have executed this Memorandum
of Agreement for Private Redevelopment as of the — day of 12017.
(SEAL)
CITY OF IOWA CITY, IOWA
Mayor
ATTEST:
By:
City Clerk
AUGUSTA PLACE, LLC
By:
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
On this day of , 2017, before me a Notary Public in
and for said County, personally appeared and , to me personally
known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of
the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the
State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal
Corporation, and that said instrument was signed and sealed on behalf of said Municipal
Corporation by authority and resolution of its City Council and said Mayor and City Clerk
acknowledged said instrument to be the free act and deed of said Municipal Corporation by it
voluntarily executed.
Notary Public in and for the State of Iowa
STATE OF IOWA )
SS:
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of 2017, by Jesse
Allen, as Manager of Augusta Place, LLC
Notary Public in and for the State of Iowa
Execution Version Page 71
Thursday, April 27, 2017 Page 1
TABLE OF CONTENTS
F
LE I. DEFINITIONS .......................................
L II. DEVELOPMENT, USE AND OCCUP
LE I REPRESENTATIONS AND WARRA
ARTICLE IV. ONVEYANCE OF CITY PROPER
ARTICLE V. T FOR COMMENCEMENT D
ARTICLE VI.
ARTICLE VII. RIGHTS
ARTICLE VIII MINIMUM
ARTICLE DC CONVEYAIS
AFFORDABLE HOUSING
ARTICLE X. INSURANCI
ARTICLE XI. ANNUAL Cl
ARTICLE XII. ASSIGN
ARTICLE XIII. ECON
'ION PLANS;
CATE OF CgIVIPLETION........................................................... 16
ACCESS PROPERTY............................................................ 19
lT.............................................................................. 20
PARKING CONDOMINIUM UNIT AND ON-SITE
.................................................................................. 22
................................................................ 4
............................................................... 5
ANC QUIREMENTS .......................8
V5 ..................................................... 10
.............................................. 13
COMPLETION OF MINIMUM
................................................................ 16
UCTION OF
ANDTlSFER................
EVELOP ENT GRANTS...
ARTICLE XIV. IND IFICATION.........\EMENT
..........................
ARTICLE XV. DE AULT AND REMEDIE...........................
ARTICLE XVI. TION TO TERMINATEEMENT.........,
ARTICLE XVII. MISCELLANEOUS .................................
Exhibit A . Ma of Urban Renewal Area ..............................
Exhibit B. Le al Description of Urban Renea .....................,Exhibit C. gal Description of Developmenrty..................Exhibit C . Legal Description of City Prope..........................Exhibit -2. Legal Description of Church Propery..........................
Exhibi . Minimum Improvements and Uses ...................................
Exhi t D-1. On -Grade Parking and Fire Station Entry and Loading
Ebit E. Concept Plan .....................................................................
'bit F. Certificate of Completion .................................................
Exhibit G. WAGE THEFT AFFIDAVIT ..........................................
�_Xl
*j
........ 25
........ 26
..................... 38
..................... 39
..................... 40
..................... 41
..................... 43
..................... 47
..................... 54
.................. 56
Thursday, April 27, 2017 Page 2
Exhibit H. TEMPORARY CONSTRUCTION AND CRANE SWING EASEMENT
AGREEMENT.............................................................................................................................. 57
Exhibit I. Opinion of Counsel...........
Exhibit J. Promissory Note ...............
K. Minimum Assessment Agreement
L. RESERVED ....................................
ExhibitAnnual Certification ...............................
Exhibit N. al Description of Off-site Affordable
Exhibit O.
of Agreement ......
.61
.................................... 63
.............................................. 64
................................... 68
................................................. 69
lits............................................ 70
................................................. 71
Thursday, April 27, 2017 Page 3
INTRODUCTION
HIS AGREEMENT FOR PRIVATE REDEVELOP ENT is by and between the City
of Iowa ity, Iowa ("City"), a municipality, established pur, ant to the Code of Iowa of the State
of Iowa acting under the authorization of Iowa Coe Chapters 15A and 403 (2017), as
amended, (" rban Renewal Act") and. Place, L.C. ("Developer"), a limited liability
company org ed under the laws of the State of low and having an office for the transaction
of business at 21 N. Linn Street, Iowa City, IA 52 45 This agreement outlines the terms and
conditions, and th relative rights and responsib' ties of the City and the Developer for the
development of the p operty in Iowa City locate to the North of City Hall in Iowa City, Iowa,
legally described in Ex ibit C hereto, ("the Pr erty" or "the Development Property") an urban
renewal parcel.
WITNESSETH:
WHEREAS, in further.
undertaken a program for the r
in the City and, in this connect
an area known as the City-Ui
which area is described in the
2157 dated October 2, 1969
f�the objectives of the Urban Renewal Act, the City has
:ation and economic development of an urban renewal area
engaged in carrying out urban renewal project activities in
Project I Urban Renewal Area (Project No. IA R-14),
newal Plan approved for such area by Resolution No.
nd from time to time with said amendments including
those added by Resolution. 16-230, dad November July 19, 2016; and by Resolution No.
, dated May 2, 20 , and
WHEREAS, the/Plan was adopted for th urban renewal area shown on Exhibit A and
legally described on E 'bit B ("Urban Renewal A a"); and
WHEREAS a copy of the Urban Renew\ithe
as constituted on the date of this
Agreement has be n recorded among the land recor.office of the Recorder of Johnson
County, Iowa; an
WHER AS, the Developer has proposed a Project own as Augusta Place for the
development f the property on the northern half of the block b dered by Gilbert Street, Iowa
Avenue, V Buren Street and Washington Street, which property\UrbanRen
ticularly described
in Exhibit C" attached hereto and made a part hereof (whichs so described is
hereinafter referred to as the "Property" or `Development Property'
HEREAS, the City has determined that the Project propeloper, as further
describ d in Exhibit D "Minimum Improvements and Uses" and oncept Plan", on
the D elopment Property, is consistent with and authorized by thn wal Plan and all
appli able State and federal laws, including but not limited to Iowat 15A and 403;
and
WHEREAS, the Developer is willing to develop or cause the Property to be developed
for and in accordance with the uses specified in the Urban Renewal Plan and in accordanb4q with
Thursday, April 27, 2017 Page 4
this Agreement by constructing the Project and incorporating the uses outlined in this
Agreement; and
WHEREAS, the City is willing to convey to the Developer that p rtion of the Property it
currently owns subject to the use limitations provided for in the Plan, t Agreement, and certain
restrictions, covenants, conditions and obligations assumed by the eveloper pursuant to this
Agree ent; and
WHEREAS, the parking lot currently on the City Pro erty includes critical parking for
the City public safety functions that are housed in City 1, and a critical component of the
Project an he City's willingness to convey the City Prop y is the replacement and sale back to
the City of a 'ty Parking Condominium Unit with 60 p 'ng spaces; and,
WHEREAS, the Project will generate,
of $14,384,905 of n%debtservice
ase upon which to
the protected schoovice levy, school
service levy, city levy, comb'instructional suppord, /
an actual minimum taxable value
1 be paid to the taxing bodies pursuant to
d plant and equipment levy, county debt
college debt service levy, and school
WHEREAS, the City be 'eves th the Project pursuant to this Agreement aligns with the
goals of the City's Comprehensiv 1 ,including the Downtown and Riverfront Crossings sub
district plan which includes the Dev pment property, as the Project provides for preservation
of a historic building for commerci u , represents strategic infill development on an under-
utilized surface parking lot, is ped strian riented by adding to the number of residences in the
downtown within walking dista e of groc stores, services, restaurants and retail, brings the
active part of the building clos to the propert line with parking hidden behind and provides 6
units of on-site affordable ho ing as well as a mmitment by the Developer to provide
additional off site affordabl ousing and replace e City owned parking necessary for the
public safety departments oused at City Hall; and,
WHEREAS, the conomic Development Grants be provided by City to Developer
under this Agreement e for the purpose of acquiring, mar taining and rehabilitating the historic
Unitarian Church as commercial enterprise and the develo\entousing for low and
moderate income fa flies.
NOW, BEFORE, inconsideration of the promie mutual obligations of the
parties hereto, e ch of them does hereby covenant and agreether as follows:
ARTICLE 1. DEFINITIONS
.�n 1.1. Definitions. In addition to other definitions set forth in his Agreement, all
terms used and not otherwise defined herein shall have the followin meanings unless
meaning clearly appears from the context:
;ement means this Agreement and all appendices hereto, as the same may4btp time to
time be modified, amended or supplemented.
Thursday, April 27, 2017 Page 5
Augusta Place, LLC TIF ACCOUNT means a separate account within the City -University
Project 1 Urban Renewal Tax Increment Revenue Fund of the City, in which there shall be
deposited all Tax Increments received by the City with respect to the Minimum hnprovements
on the Development Property described in Exhibit C.
Certificate of Completion means a certification in the form of the certificate attached
her o as Exhibit F and hereby made a part of this Agreement, pro ' ed to the Developer
pursu t to Section 6.6 of this Agreement.
Chur Pro ert means the property owned by Developer d described on Exhibit C-2
attached here .
City means the City of Iowa City, Iowa, or any succ:96sor to its functions.
City Property m s the property to be sold b City to Developer pursuant to Article IV
hereof and described on xhibit C-1 attached here .
Cit Parkin Condoms 'um Unit means a condominium unit to be conveyed to the City
by Developer pursuant to Sect n 9.1 hereo the components of which are described on Exhibit
D attached hereto.
Code means the Code of Iowa,7, as amended.
Construction Plans means th pl , specifications, drawings, progress reports and related
documents reflecting the con stru ionwor to be performed by the Developer with respect to the
Minimum Improvements on th Developme t Property and the other properties upon which the
Public hnprovements will be ocated; the Co struction Plans shall be as detailed as the plans,
specifications, drawings an related documents hich are submitted to the building inspector of
the City as required by ap icable City codes.
Coun means thglCounty of Johnson, Iowa.
Developer mems Augusta Place, LLC.
Developmeift Prooerty means that portion of the City Uri versity Project 1 Urban Renewal
Area of the City described in Exhibit C hereto, consisting of th "City Property" and "Church
Property" des 'bed in Exhibits C-1 and C-2 hereto.
Econ is Develo ment Grants mean the Tax Increment paymento be made by the City
to the Dev Loper under Article XIII of this Agreement.
E ent of Default means any of the events described in Section 15.1 of Agreement.
First Mortgage means any Mortgage granted to secure any loan made pursu t Neither a
m gage commitment obtained by the Developer from a commercial lender or oth financial
institution to fund any portion of the construction costs and initial operating capital req ' ements
of the Minimum Improvements, or all such Mortgages as appropriate.
Thursday, April 27, 2017 Page 6
Minimum Improvements shall mean the construction of a developme , together with all
related site improvements, detailed in Exhibits D and E hereto. Minimumprovements shall
not include increases in assessed or actual value due to market factors. //
Mortgage means any mortgage or security agreement in which t Developer has granted a
;qge or other security interest in the Development Property, ora y portion or parcel thereof,
or an-Omprovements constructed thereon.
N Proceeds means any proceeds paid by an insurer t the Developer under a policy or
policies o insurance required to be provided and maintains by the Developer, as the case may
be, pursuan to Article X of this Agreement and r ining after deducting all expenses
(including fees d disbursements of counsel) incurred i the collection of such proceeds.
Off-site Affordable Housing Units the twel (12) two-bedroom apartments owned by
an affiliateid Developer, Allen rentals LLC, and to be transferred to Developer in
accordance with Section 6(0) of this Agreem t located at 104 Westside Drive, Iowa City and
legally -described on Exhibi N hereto that wil remain affordable in accordance with Section 2.1
of this Agreement.
On-site Affordable Housing`Units Aeans the six (6) one -bedroom residential condominium
units approximately 550 square fee ' size as shown on the Concept Plan attached hereto as
Exhibit E that will be conveyed by veloper to City pursuant to Section 9.1 hereof for use as
housing for low and moderate into e f\Ci
cordance with Iowa Code Chapter 403.
Ordinance means Ordina a Nosd of the City, under which the
taxes levied on the taxable p perty iniversity project 1 Urban Renewal Area shall
be divided and a portion pai into the Ian Renewal Tax Increment Revenue Fund.
Proiect shall me the construction and operatibki of the Minimum Improvements on the
Development Property, s described in this Agreement.
State means State of Iowa.
Cit -Univ sit Pro'ect 1 Urban Renewal Tax Increment n
the City create under the authority of Section 403.19(2) of the C&
fund was ere ed in order to pay the principal of and interest on lc
indebtednes , whether funded, refunded, assumed or otherwise,
means the special fund of
and the Ordinance, which
is, monies advanced to or
obligation issued under the authority of Section 403.9 or 403.12 of the
City to nance or refinance in whole or in part projects undertaken
Univers' Project 1 Urban Renewal Plan, as amended.
iding bonds or other
Code, incurred by the
pursuant to the City -
ax Increments means the property tax revenues with respect to the Minimum
ten ovements that are divided and made available to the City for deposit in the City\\University
Pr ject 1 Urban Renewal Tax Increment Revenue Fund under the provisions of Section 403.19
of the Code and the Ordinance.
Thursday, April 27, 2017 Page 7
Termination Date means the date of termination of this Agreement, as established in
Section 17.8 of this Agreement.
Unavoidable Delays means delays resulting from acts or occurrences outside the
reasonable control of the party claiming the delay including but not limited to storms, floods,
fires, explosions or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts
or other labor disputes, delays in transportation or delivery of material or equipment, litigation
coenced by third parties, or the acts of any federal, State or local go ental unit (other
than e City).
Urb Renewal Plan means the City -University Project 1 Urban Renewal Plan, as
amended, ap oved in respect of the City -University proje Urban Renewal Area described in
the preambles h cof.
ARTICLE II. DE LOPMENT, US OCCUPANCY REQUIREMENTS
Section 2.1.
(a) Minimum Im rove ts. The Developer shall construct the Minimum
Improvements on the Developm t operty, which will consist of a mixed-use structure
described more fully on EVbitand nceptually shown in Exhibit E, attached hereto and
incorporated herein by refMinim Improvements"). The Developer hereby commits
to a project that includes anmate total $35,163,653 in development costs.
(b) Affordable Aousing. The Develo shall provide 18 affordable housing units.
To satisfy this obligation/in part, Developer agrees sell 6 one -bedroom residential units in the
Project to the City ant to Section 9.1 hereof, f use as determined by City for low and
moderate income ou gas defined in Iowa Code C ter 403 ("On-site Affordable Housing
Units")
In er tisfaction of this obligation, Develo agrees to rent 12 two-bedroom
residential is 1 cared at 104 Westside Drive, in Iowa Ci , IA as affordable rental housing
subject to a li 'tations set forth here. Rental applications or these units shall include the
applicant' ho ehold income and household size and Develo shall verify that the units are
occupied y ouseholds with incomes at or less than 60% median family income as
calculat er the HUD Part 5 Annual Income definition for that ousehold (24 CFR 5.609).
(Curr ly, 0% of the HUD -established Area Median Income is 6,300 for a one person
house old, 41,52 fora 2 -person household, $46,680 fora 3 -person hous old and $51,840 for a
imam rent shall be calculated based on 40% of area median into e, as an
deft by the U.S. Department of Housing and Urban Development. All utilitie all be paid
by the Developer. The method to calculate maximum rent for these 12 units is as follo
Thursday, April 27, 2017 Page 8
2 -Bedroom Unit
a. Median Income of a two person household
$69,200
b. 40% Median Income (two person household)
$27,680
c. 30% of income available for housing expenses
(b *.30)
$8,304
d. Monthly housing cost (c/12) —
MAXIMUM MONTHLY RENT
$692
In order to , pand affordable housing opportunities in Iowa Cit the Developer shall not
accept Housing Ch 'ce Vouchers for these reduced rent units.
The rent will be (justed up annually if HUD adjusts a income limits higher than the
income limit identified i this Agreement. If the HUD i ome limits are adjusted by HUD
during the rental term (typ ally one year), the rent need of be changed for the duration of the
current lease. If at any ti a HUD adjusts the in a limits lower than the income limit
identified in this Agreement, a Developer is not r uired to decrease the rent below the rents
identified in this Agreement. The Developer all submit an annual tenant housing report
which, at a minimum, includes atistics rel ng to the households being assisted by unit,
household size, income, lease dates d rents The report is due on October 15 annually for the
preceding 12 month period (October thr gh September 30). Income documentation must be
maintained by the Developer for the mo recent three years, and presented upon request by the
City.
Tenant income shall be revi wed by th Developer before lease renewal (typically
annually). After the initial into a determinatio s, subsequent determinations may be made
based on most recent tax forms ncome stubs, etc. If the tenant's income exceeds 80% of
median income, the tenant m t pay 30% of their in me for rent and utilities and the maximum
rent determined by the fo la above will no longer bX applicable. For example, upon lease
renewal, a three person ho sehold's income is now $60, 00 (over 80% median income). Their
rent would be $1,500 (($ 0,000*.30)/12).
Said Off-siteffordable Housing Units shall be affo able in accordance with the terms
hereof for a period r twenty (20) years from the date an occu ancy permit is issued for the
Project and it is in nded and agreed that the requirements of th section with respect to the Off-
site Affordable using Units (the "Covenants") shall run with land. The Developer agrees
for itself, its su essors and assigns that each deed or other convey ce of the Off-site
Affordable H sing Units shall contain the Covenants. Itis intende and agreed that the City
and its succe sors shall be deemed beneficiaries of the Covenants , bo\othear
its own right
and also fo the purposes of protecting the interests of the communityarties, public or
private, i hose favor or for whose benefit such Covenants have beeSuchCoven s shall (and each deed shall so state) run in favor of the Cityicable 20 year
period,#ring which time such Covenants shall be in force and effecthall have the
right iri the event of any breach of any Covenant during the applicable' d to exercise
all the rights and remedies, and to maintain any actions or suits at law or in equity or her proper
proceedings to enforce the curing of such breach of Covenant, to which it or any other
beneficiaries of such Covenant may be entitled, and shall be entitled to recover, in addition to its
court costs, a reasonable attorney's fee to be fixed by the court, and such recovery shall include
Thursday, April 27, 2017 Page 9
court costs and attorney's fees on appeal, if any. Further, the City shall hold all right and
authority to agree to or provide any amendment, modification, waiver, termination or release of
the Covenants on behalf of itself and other parties, public or private, which are beneficiaries
thereof (other than Developer, its successors and assigns). Said Covenants shall survive the
terminatioof this Agreement.
(c) to ' veloper acknowledges that the construction ite is directly to the
North of City 1 the City's critical public safety operati s. Prior to the start of
construction the,-whic!1hftoDuses
's Director of Public Works must approve t Developer's staging and
phasing plan and plan must be designed to minimize the ' pact of the construction on
critical city oper
(d) Use of t-of-Wa • Construction Easdments. In the event the Developer
requires use or closing o ublic right -of --way for c0 vction of the Minimum Improvements
any such closing is subject t, the approval of the Di ctor of Public Works and the execution of a
Temporary Use of Right o WaVwiII
the City's Director of Public Works and
Developer. Developer anticipat ted a Temporary Crane Swing easement from the
City, and thatin order to corn Nance, vestibule, and loading dock improvements
included within the City Parking Unit the Developer will require a Temporary
Construction Easement from the Ceement for said temporary easement rights shall
take a form substantially similar tary Construction Easement Agreement, attached
hereto as Exhibit H.
(e) Sound Due to ProArnity of Emergency Operations Developer acknowledges that
the Development Property is i close proximit o the emergency operations of the City (police
and fire) and that noise fro those operations, i cluding emergency sirens and the testing of
those sirens in the parkin facility, may be dis tive to occupants of the townhomes and
apartments to be cons cted on the Developme t Property. It shall be Developer's
responsibility to notify enants and purchasers of the p oximity of these emergency operations
and the accompanyin noises at the time of lease or s e. City shall have no obligation to
remedy any such note concerns.
ARTICLE III. REPRESENTATIONS AND WARRANTIES
S96tion 3.1. Representations and Warranties of the Ci The City makes the
following rep esentations and warranties:
(a) The City is a municipal corporation and political subdivisibR organized under the
ion of the Constitution and the laws of the State and has the po to enter into this
m nt and cavy out its obligations hereunder.
The execution and delivery of this Agreement, the cons tion of the
trail ctions contemplated hereby, and the fulfillment of or compliance with the erms and
co ditions of this Agreement are not prevented by, limited by, in conflict with, or re It in a
breach of, the terms, conditions or provisions of any contractual restriction, evidenc f
indebtedness, agreement or instrument of whatever nature to which the City is now a party or by
which it is bound, nor do they constitute a default under any of the foregoing.
Thursday, April 27, 2017 Page 10
Section 3.2 Covenants, Obligations, Representations and Warranties of Developer.
The Developer makes the following representations, commitments and warranties:
The Developer is a limited liability company, duly organizFahnization,
the laws of
the State f owa has power to enter into this Agreement and to peobligations
hereunder, is not in violation of any provisions of its articles of o operating
agreement, an tkier agreement or the laws of the State of Iowa.
(b) eveloper has the full power and authority execute this Agreement and
this Agreement sh constitute the legal, valid and bindi obligation of the Developer in
accordance with its s, and the consent of no other p is required for the execution and
delivery of this Agr ent by the Developer or a consummation of the transaction
contemplated hereby.
(c) The making d performance this Agreement by the Developer and the
execution and delivery of the ocuments to b elivered by the Developer pursuant hereto, have
been duly authorized by all n essary actiA of the Developer, and this Agreement and such
documents will be valid and bind g obli tions of the Developer enforceable in accordance with
their terms.
(d) The Developer wi use the Minimum Improvements and the Off-site
Affordable Housing Units to be ns ed, operated and maintained in accordance with the
terms of this Agreement, the roan R mal Plan, and all local, state and federal laws and
regulations (including, but no limited to, vironmental, zoning, energy conservation, building
code and public health law and regulations), accept for minor variances necessary to construct
the Minimum Improvem law/
contained in any C struction Plans approved by the City.
(e) The De(eloper will use its best effoNksto obtain, or cause to be obtained, in a
timely manner, all r uired permits, licenses and appfevals, and will meet, in a timely manner,
all requirements of 1 applicable local, state, and fed laws and regulations which must be
obtained or met before the Minimum Improvements ay be lawfully constructed. The
Develop/'w
tect will work with the City's Design Re w Committee on the final designs
of the pra Design Review Committee will ultimately prove or disapprove the exterior
design olding. This agreement is contingent on the eveloper and the City's staff
Design mmittee reaching agreement on the exterior desi of the building. If the final
exterior bstantially deviates from the concept plan shown Exhibit E, as determined
by the Cer or designee, it shall be subject to approval by Coun '
f) The execution and delivery of this Agreement, the co ation of the
trans tions contemplated hereby, and the fulfillment of or compliance wi the terms and
con tions of this Agreement are not prevented by, limited by, in conflict with, r result in a
br ch of the terms, conditions or provisions of any contractual restriction, vidence of
indebtedness, agreement or instrument of whatever nature to which the Developer is w a party
or by which it is bound, nor do they constitute a default under any of the foregoing. �,
Thursday, April 27, 2017 Page 11
(g) The Developer will spend enough in construction of the Minimum Improvements,
when combined with the value of the Property and related site improvements, to equal or exceed
the Assessor's Minimum Actual Value set forth in Section 8.1 of this Agreement. The
Developer estimates that the Assessor's Minimum Actual Value set forth in Section 8.1 of this
Agreement is a reasonable estimate of the actual value for ad valorem tax purposes. /
(h) The Developer has not received any notice from any local, state or fe ral official
that thea\orrevi
the Developer with respect to the Property mayor will bei solation of any
environmor regulation (other than those notices, if Xfiledplanned
he City has been
notified).eloper is not aware of any State or federal clato be filed by
any partyo any violation of any local, State or federal law, regulation or
review prthe Developer is not aware of any violatl, State or federal
law, reguevs w procedure which would give any p on a valid claim under any State
or federalenta tatute.
(i) The Develop shall proceed with due iligence to obtain construction financing
commitments, which comms ents shall be suffic nt to enable the Developer to successfully
complete the Minimum Impro sen as conte plated in this Agreement. This agreement is
contingent upon Developer obta' ing fin ng upon terms and conditions satisfactory to
Developer and City, and shall be a nditio precedent to the City's conveyance of the Property
to Developer in accordance with Secti 6 herein.
(j) The Developer will oop ate fully with the City in resolution of any traffic,
parking, trash removal, public saf y or an other problems which may arise in connection with
the construction and operation o the Minim Improvements.
(k) In operating a Minimum Improv ents upon completion of construction and in
performance of the Off si Affordable Housing U it obligations and covenants set forth herein,
the Developer shall do t e following:
/erm
i) M ntenance of Properties. The Deve per will maintain, preserve and keep
the hn rovements and the Off-site Affordabl Housing Units in good repair and
work, o dinary wear and teaz excepted, and from
,__Ie
e to time will make all necessary
repaients, renewals and additions.
ii) Maintenance of Records. The Developer will ke at all times proper books of
recorcount in which full, true and correct entries will be ade of all dealings and
transor in relation to the business and affairs of the Develope in accordance with the
modime tax basis of accounting consistently applied throughou the period involved,
and toper will provide reasonable protection against loss or dama to such books of
recorount.
' (iii) Compliance with Laws. The Developer will comply with all laws, rules and
regulations relating to the Minimum Improvements, other than laws, rules and regulations the
failure to comply with which or the sanctions and penalties resulting therefrom, would not have a
material adverse effect on the business, property, operations, or condition, financial or otherwise,
of the Developer.
Thursday, April 27, 2017 Page 12
(iv) Non -Discrimination. In operating the Minimum Improvements, the Developer
shall not discriminate against any applicant, employee or ten/beeause o race, creed, color,
religion, sex, national origin, sexual orientation, age, disabilitus, gender identity,
presence or absence of dependents or public assistance source. The Developer shall
ensure that pplicants, employees and tenants are consideredated without regard to
their racecreed, color, religion, sex, national origin, sexual oage, disability, marital
statusgen er identity, presence or absence of dependents or pnce source of income.
(1) ev Doper (or any person or entity that has
Developer) has of admitted guilt or liability or been a
administrative proc eding of committing a repeated or
Collection law, the Io a Minimum Wage Act, the Fe ral
state statute or local or ance, which governs the�Pdiicated
ent
to the date of this Agree nt and shall not t ad
date of this Agreement.
in or owns more than 25% of
Odicated guilty or liable in any judicial or
✓illful violation of the Iowa Wage Payment
Fair Labor Standards Act or any comparable
of wages, within the five (5) year period prior
guilty or liable therefore at any time after the
ARTICLE IV. YIONVEYANCE OF CITY PROPERTY
Section 4.1 Purchase Pride
Subject to theterms, ovenants, and onditions of this Development Agreement, the City
will sell the City Property gaily described in xhibit C-1 to Developer, and the Developer will
purchase the City Prope y from the City and ay therefor the amount of $3,330,000. The
purchase price will be paid in the form of $2,6\79,169 in cash from the Developer and a
forgivable loan by Cit to Developer in the amount o $650,831 pursuant to Section 4.7 hereof.
The City hall convey to the Developer title to the Pro e t by Warranty Deed ("Deed").
Such conveyan e and title shall be, in addition to all conditio s, covenants and restrictions set
forth or refe ed to elsewhere in this Agreement, subject tc 11 conditions, covenants and
restrictions s t forth in the Urban Renewal Plan.
he Developer shall properly file the Deed for recordation among a land records in the
offiVDed,
the Johnson County, Iowa Recorder. The Developer shall pay all c sts for so recording
the Memorandum of this Agreement, and any necessary easement agree ents provided for
in tgreement.
Section 4.4 Abstract of Title.
The City, at its expense, shall provide an Abstract of Title on the subject property
continued through the date of this Agreement, for examination by the Developer. The City shall
deliver said Abstract to Developer within 30 calendar days of the date of this Agreement, after
Thursday, April 27, 2017 Page 13
which the Developer shall have 30 calendar days to examine same and issue a preliminary title
opinion. The Abstract shall become the property of the Developer at the time of delivery of the
Deed for the parcel, and such Abstract shall show good and merchantable title in the City in
conformity with this Agreement, Iowa law and the title standards of the Iowa State Bar
Association, and shall show title free and clear of all taxes, encumbrances, easements, covenants,
res t, and restrictions, except as otherwise agreed to herein, which shall b subject to
approv of Developer after examination of the abstract of title and review of the ecific terms
of any a ements and restrictions, including, but not limited to, zoning o ances, existing
easements, strictions or reservations, including, but not limited to, thospelestablished by the
Urban RenewV Plan.
Section
If the conditio precedent to closing set forth in S on 4.6 hereof have been satisfied,
the City shall deliver the eed and possession of the Cit roperty to the Developer on or before
September 2, 2017, or ons ch other date as the pare ereto may mutually agree in writing (the
"Closing Date"); provided, Wever, that in the a nt the conditions precedent to closing have
not been satisfied, either the Ci or Developer y tem mate this Agreement or waive or extend
the time for satisfaction of such nditions p cedent. Delivery of the Deed shall be made at the
principal office of theCity on the sing ate and the Developer shall accept such delivery and
pay to the City at such time and place Aurchase Price in immediately available funds.
Section 4.6 Conditions Pced to Convevance of Pro ert
The City's obligation to onvey title possession of the Property to the Developer on
the Closing Date, and Develo er's obligation to ept title and possession of the Property on the
Closing Date shall be subje to satisfaction of the f owing conditions precedent:
(a) The Developir and the City shall be in mate compliance with all of the terms and
Vement
f this Agreement;
(b) per shall have submitted to the City, an the City shall have approved,
truction Plans due by July 1, 2017 p uant to Article VI of this
(site preparation and foundation plans). a Developer shall have
the City a certification that the plans are in pliance with the Urban
an and this Agreement.
The Developer shall have furnished the City with evidence in arm satisfactory to
the City (such as a letter of commitment from a bank or other lendin stitution), that
the Developer has firm commitments for construction and perm ent fi7equity
ing
acceptable to Developer for the Project in an amount sufficient, togethe wit
commitments, to complete the Project in conformance with the Constructio , or
the City shall have received such other evidence of the Developer's financi ity
as in the reasonable judgment of the City is required;
Thursday, April 27, 2017 Page 14
(d) The Developer shall have furnished the City with evidence in a form satisfactory to
the City of the acquisition of performance and payment bonds for the Project naming
the City as an additional obligee;
(e) Execution of the Minimum Assessment Agreements, pursuant to Article VIII of this
(f) Ex ution of Temporary Construction and Crane Swing sement Agreement
pars t to Section 2.1(d) of this Agreement;
(g) Approv of Developer's Staging and Phasing Plan by e city pursuant to section 2.1
(c) of this greement ;
(h) Execution o a Temporary Use of Right -of -W Agreement pursuant to Section 2.1
of this Agre ent;
(i) Receipt of an Onion of Counsel toD�4eloper as to the subject of and in the form of
Exhibit I, attachedXereto; 7
(j) Agreementof the De Loperldanthe City's staff Design Review Committee on the
exterior design of the bui' g pursuant to 3.2(e) of this Agreement. If such
agreement is not reacbeeveloper has the right, at its option, to terminate this
Agreement; and,
(k) Rezoning of the Chu�h Prop Alty as an historic landmark by the Iowa City City
Council. / \
(1) City approval f preliminary pl s and specifications for the City Parking
Condominium Uni
(m) Vacation/the the North 10 feet of thea ey as described in Exhibit C-1 of this
Agreement.
(n) Develo er's execution of the Wage Theft Affrda it attached hereto as Exhibit "G"
(o) E ' ence Satisfactory to City that the Off -Site A ordable Housing Units will be
convey d to Developer no later than July 1, 2019.
Se on 4.7 Forgivable Loan. On the date of closing, Cid shall make a loan to
DevelopArin the principal amount of $650,831.00 plus interest of 3.84%\per annum, which loan
shall b6 forgiven upon issuance of a Certificate of Completion for the Minimum Improvements
pursuant to Section 6.6 hereof. In the event a Certificate of Completion is not issued in
accordance with Section 6.6, the entire principal amount and interest will become immediately
due and payable. Developer shall execute a Promissory Note in the form attached hereto as
Exhibit J and provide the same to City at closing.
Thursday, April 27, 2017 Page 15
Section 4.8 Escrow. It is contemplated by this agreement that the City will acquire
certain condominium units after the Minimum Improvements are constructed, as detailed in
Article D{. At closing, the City shall place $602,843.00 of said purchase price in escrow to be
held until the City Acquisition Closing Date, as defined in Section 9.5. On the City Acquisition
Closing Date, the City will release these funds, along with any accumulated interest thereon to
Developer. The City will, in its sole judgment, secure the best possible interest rate on the
es cr ed funds. The parties understand that the interest will be mal in light of the
inves t options available to the City and the limited time t e funds will be held in
escrow. In event that the conditions precedent set forth in on 9.6 are not met, the City
will not return funds or interest to Developer, but rather use these funds for whatever
purpose it deems a ropriate.
Section 5.1. The
commence not later than S
June 30, 2019.
f the Project and Minimum Improvements shall
7, and shall be substantially completed on or before
VI. CONSTRUCTION PL S; CONSTRUCTION OF
OVEMENTS: CERTIFICATINOF COMPLETION
Section . Plans for Construction of Im rov\Oans
s. Plans and specifications with
respect to red lopment of the Property and the constrof certain improvements thereon,
to consist of a Minimum Improvements shown on Eand as outlined in Section 2.1
hereof, sh be in conformity with the Urban Renean d this Agreement, and all
applicabl ederal, State and local laws and regulations. mptl as possible after the date of
this A ent, and, in any event, no later than the tecifie therefore in Section 6.2
hereo a Developer shall submit to the City for desigw and a royal plansdrawings,
spec' cations; and related documents, and the proposnstruction chedule in sufficient
co leteness and detail to show that such Minimum Impents and con ction thereof will
b in accordance with the provisions of the Urban Rl Plan, this A eement, and all
plicable codes. If the Construction Plans conform to thisions of the Urb enewal Plan,
this Agreement, and all applicable codes, the City shall approve in writing such ction
Plans d no further filing by the Developer or approval by the City thereof shall be required
ex t with respect to any substantial change. The City will then, upon appropriate showing of
compliance with the requirements of the previous sentence, issue the appropriate building
permit(s).
Thursday, April 27, 2017 Page 16
Failure by the City to identify a code deficiency during plan review does not, however,
relieve the Developer from any obligation to comply with all applicable code provisions. Such
Construction Plans shall, in any event, be deemed approved unless rejection thereof in writing by
the City, in whole or in part, setting forth in detail the reasons therefore, shall be made within the
time specified in Section 6.2 hereof. If the City so rejects the Construction Plans in whole or in
part as not being ' conformity with the Urban Renewal Plan, this Agreement, ora 1 applicable
codes, the Devel per shall submit new or corrected Construction Plans which are ' conformity
with the Urban R newal Plan, this Agreement, and all applicable codes within a time specified
in Section 6.2 here f, after written notification to the Developer of the rejectjeft.
The provisios of this Section relating to approval, rejec 'on, and resubmission of
corrected Constructio Plans her above provided with respect the Construction Plans shall
continue to apply until a Construction Plans have been appr ed by the City: Provided, that in
any event the Develope shall submit Construction Plan hich are in conformity with the
requirements of the Urban enewal Plan for the Project, s Agreement and all applicable codes,
as determined by the City, o later than the time sne ' ed therefore in Section 6.2 hereof. All
work with respect to the Nininun
Developer on the Property shalbe in
City.
Approval of the ConstructioN
obligation to comply with the terms
applicable federal, State and local I
Construction Plans by the City b d
Approval of Construction Plans Oeut
constitute approval for any o er Ci
Minimum Improvements as eprnstracte
Section 6.2.
to be constructed or provided by the
the Construction Plans as approved by the
s by the City shall not relieve Developer of any
provisions of this Agreement, or the provision of
dinances and regulations, nor shall approval of the
i to constitute a waiver of any Event of Default.
olely for purposes of this Agreement, and shall not
.pdke nor subject the City to any liability for the
(a) Pro es R orts and Time for Submissio of Construction Plans. Developer will
keep the City inform d regarding the status of the project b responding to inquiries from
representatives oft e City and furnishing progress reports as asonably requested, but not less
than quarterly d2-'Site
g construction. Developer shall submit the llowing to City on or before the
identified date: ) a Site Plan Application identifying how the bu ding sits on the site and
identifying all xisting and proposed utilities (adhering to site plan bmittal requirements) and
an applicatio and plans for Staff Design Review including schematic esign development
drawings, s owing preliminary floor plans, elevations identifying maters sand colors and
related in rmation by June 1, 2017; 2) Site preparation construction draw s by July 1, 2017;
3) Buildi g Permit Application and plans for a foundation by August 1, 201 ) a Building
Permit pplication and plans for the structure shell by October 1, 2017; 5) a But ing Permit
Appl' ation and plans for the finish construction by January 1, 2018.
Thursday, April 27, 2017 Page 17
Within 30 calendar days of each submittal, the City shall review and approve or reject
and make recommendations for corrections to said Construction Plans. The City's review of said
Construction Plans shall be based on the Urban Renewal Plan, all applicable codes and any
additional requirements imposed on the Developer under this Agreement.
(b) Time for Submission of Corrected Construction Plans. Ex t as provided in
Paragraph ( of this Section, the time within which the Developers submit any new or
corrected C struction Plans as provided for in Section 6.2(a) her shall be not later than
fifteen (15) c dar days after the date the Developer receives en notice from the City of
the City's rejection and recommendations for corrections to the nstruction Plans referred to in
the latest such no ' e.
(c) Maxirhum Time for A roved Construc '6n Plans. hi any event, the time within
which the Developer shqll submit Construction Plans hich conform to the requirements of this
Section and are approve y the City shall b/"nl
than sixty (60) calendar days after the date
the Developer receives 'tten notice fCity of the City's first rejection and
recommendations for corr "ons to the oonstruction Plans submitted to it by the
Developer.
(d) Time for City ActhRn on CAange in Construction Plans. The time within which the
City may reject any change in the Vonp&uction Plans, as provided in Section 6.3 hereof, shall be
fifteen (15) calendar days after the d.* of the City's receipt of notice of such change.
Section 6.3. Chanes in ons action Plans. If the Developer desires to make any
substantial change in the Cons ction Pl s afteF their approval by the City, the Developer shall
submit the proposed change t the City its approval. Pursuant to Section 3.2, if the final
exterior design substantially eviates from a concept plan shown in Exhibit E, as determined
by the City Manager or de gnee, it shall be s ject to approval by Council. If the Construction
Plans, as modified by th proposed change, co form to the requirements of this Section with
respect to such previou y approved Constructio Plans, the City shall approve the proposed
change and notify the eveloper in writing of its proval. Such change in the Construction
Plans shall, in any ev t, be deemed approved by the ity unless rejection thereof, in whole or in
part, by written no ' thereof by the City to the Dev oper, setting forth in detail the reasons
therefore, shall be ade within the period specified therefbTe in Section 6.2(d) hereof.
Section 6 Commencement and Completion f Construction of Minimum
hnnrovements. a Developer agrees for itself, its successors assigns, and every successor in
interest to the roperty, or any part thereof, and each deed or they conveyance shall contain
covenants o the part of the Developer for itself and such sac ssors and assigns, that the
Developer, d such successors and assigns, shall promptly begin d diligently prosecute to
completio the development of the Property through the cons tion of the Minimum
Improv ents thereon, and that such construction shall in any event n within the period
specified in Article V hereof and be completed within the period specified ' such'Article V. It
is intended and agreed, and each deed or other conveyance of the Property or y portion thereof
shall so expressly provide, that the construction of the Minimum Improv ents shall be
covenants running with the land and they shall, in any event, and without regar o technical
classification or designation, legal or otherwise, and except only as otherwise specifically
Thursday, April 27, 2017 Page 18
provided in this Agreement itself, be, to the fullest extent permitted by law and equity, binding
for the benefit of the community and the City and enforceable by the City against the Developer
and its successors and assigns to or of the Property or any part thereof or any interest therein.
Section 6.5. Notice of Delays. Until construction of the Minimum Improvements has
been completed, the Developer shall give prompt notice in writing to the City of any adverse
developrilegt which would materially affect or delay the completion of such,construction. Upon
such notifkation and subject to a written agreement with the City Manager', the completion date
will be ex qn ed accordingly.
Certificate of Completion.
(a) Pro t after completion of the Minim provements in accordance with
those provisions o thi \Agreement relating solely to the obligations of the Developer to
construct the Minim Improvements (including e dates for beginning and completion
thereof), the City will fu ish the Developer with appropriate instrument so certifying. Such
certification by the City sh 11 be a conclusive dete ination of satisfaction and termination of the
agreements and covenants i this Agreement d in the deed with respect to the obligations of
the Developer, and its success s and assign , to construct the Minimum Improvements and the
dates for the beginning and com etion th eof. Such certification and such determination shall
not constitute evidence of comph ce w' h or satisfaction of any obligation of the Developer to
any holder of a mortgage, or any in er of a mortgage, securing money loaned to finance the
Minimum Improvements, or any p ereof, or of any obligation under this Agreement other
than the obligations to construct t Mini um Improvements.
(b) The certificatioX provided for 'n this Section 6.6 shall be in the form attached
hereto as Exhibit F. If the C' y shall refuse or f ' to provide any certification in accordance with
the provisions of this Sect' , the City shall, with' thirty (30) calendar days after written request
by the Developer, provid the Developer with a writ n statement indicating in adequate detail in
what respects the Deve oper has failed to complete th Minimum Improvements in accordance
with the provisions o his Agreement, or is otherwise in efault, and what measures or acts will
be necessary, in the pinion of the City, for the Developer o take or perform in order to obtain
such certification.
ARTICLE VII. RIGHTS OF ACCESS TO
Sec on Access to Property. The Developer shall permit a representatives of the
City acce to the7.1 Property at all reasonable times which it deems necess for the purposes of
this Agrement including, but not limited to, inspection of all work eing performed in
connec 'on with the construction of the Minimum Improvements. No co ensation shall be
payab e nor shall any charge be made in any form by any party for the access p vided for in this
Section.
Thursday, April 27, 2017 Page 19
ARTICLE VIII MINIMUM ASSESSMENT
Section 8.1 Minimum Assessment Agreements.
Devel per agrees to enter into a Minimum Assess t Agreement in a form in
substantial co pliance with Exhibit K attached hereto/thit,
m or to establish a Minimum Actual
Value for the 1 d and Minimum Improvemen' ct.
The Deve per acknowledges and agr the owners of condominium units
sold, will pay whe dueall taxes and asseal or special, and all other charges
whatsoever levied up n or assessed or placedoperty and Minimum Improvements
thereon and further agr s with respect to all tat:
(a) it will not eek administr 've or judicial review of the applicability of any tax
statute determined by any official to applicable to the Property or the Developer, or the
owners of condominium unit sold, r raise the inapplicability of any such tax statute as a
defense in any proceedings, inchkin,4 delinquent tax proceedings; that
(b) it will not seek dm' istrative or judicial review of the constitutionality of any
tax statute determined by any fficial o be applicable to the Property or the Developer or the
owners of condominium unix sold, or ise the unconstitutionality of any such tax statute as a
defense in any proceedings, ncluding deli quent tax proceedings; and
(c) it will n cause a reduction 1 the taxable valuation upon which real property
taxes are paid with r pect to the Project, w ich consists of a multi -use structure generally
consistent with the nimum Improvements and ses shown on Exhibit D, below the amount of
$14,384,905 after t ing into consideration any fac ors such as "roll -backs" which would reduce
the taxable value the Property as of January 1, 20 ("Minimum Actual Value") through:
willful destruction of the Property\or any part thereof,
(ii) a request to the City Assessor of Io City, Iowa to reduce the Minimum
al Value of the Property;
(iii) an appeal to the Board of Review of the 'ty of Iowa City or to the Board
Review of Johnson County to reduce the Minimum Ac 1 Value of the Property;
(iv) a petition to the Board of Review of the State o Iowa or to the Director of
Revenue and Finance of the State of Iowa to reduce the Mini um Actual Value of the
Property below the amount noted above;
(v) an action in any District Court of the State of Iowa seekin a reduction in
the Minimum Actual Value of the Property below the amount noted above;
Thursday, April 27, 2017 Page 20
(vi) an application to the Director of Revenue and Finance of the State of Iowa
requesting an abatement of real property taxes pursuant to any present or future statute or
ordinance; or
(vii) any other proceedings, whether administrative, legal,94 equitable, with any
strative body within the City of Iowa City, Johnson Count , or the State of Iowa or
any court of the State of Iowa or the federal governrnePK
(d) ith the exception of the City Parking Cond inium Unit and the residential
units to be owne by the City, it shall not, prior to Dece er 31, 2023, cause or voluntarily
permit the Propert to become other than taxable prop , to be taxable at an amount less than
the Minimum Actua Value noted above; to be owne y a utility or any other entity of a type
where the assessed va e of taxable property of su entity is not treated as located within the
Project Area in its enrir ty; to be owned by any ti
having tax exempt status; or apply for a
deferral of property tax on the Property pursuan o any present or future statute or ordinance.
(e) it is bound bX the applic a Minimum Assessment Agreement attached as
Exhibit K, fixing the Minimu Actual V lue of the Property as approved by the Assessor and
the City as set forth herein and id M' 'mum Assessment Agreement shall inure to the benefit
of and be binding upon the Develo er' successors in interest. The Developer shall provide to the
City a title opinion showing all ' nholders, and all such lienholders shall consent to the
Minimum Assessment Aereement.
The Developercontem ates tha the Project will consist of condominium units and
agrees that at the time of the xecution of a declaration required by Chapter 499B Horizontal
Property (Condominiums)he Code of IoN, an attachment to the declaration will be executed
by the Developer, the City and the City Asse sor allocating a portion of the Minimum Actual
Value to each unit.
On December 1, 2023, the Minimum Nctual Values herein established and the
restrictions of this Se ion 8 shall be of no further fore and effect and shall no longer encumber
the Property, and the)Minimum Assessment Agreement hall terminate.
The Mini 'fi
Assessment Agreement shall be ce ed by the Assessor for the City as
provided in Iow Code Section 403.6(19) and shall be d for record in the office of the
Johnson Count Recorder, and such filing shall const to notice to any subsequent
encumbrancer purchaser of the Property (or part thereof), ether voluntary or involuntary,
and such Min' um Assessment Agreement shall be binding d enforceable in its entirety
against any s ch subsequent purchaser or encumbrancer, inclu ' g the holder of any First
Mortgage.
Thursday, April 27, 2017 Page 21
ARTICLE IX. CONVEYANCE OF CITY PARJUNG CONDOMINIUM UNIT AND
ON-SITE AFFORDABLE HOUSING UNITS
Section 9.1 Consideration.
Subj t to the terms, covenants, and conditions of this Dev pment Agreement, the
Developer wi convey the following real estate to the C
(a) Cit Parking Condominium Unit. TCity/allacquire the City Parking
Condominium Uni as defined in Section 1.1 hereo. On the City Acquisition
Closing Date, as set rth below, the City will releasehe $602,843 escrowed plus
interest pursuant to Se 'on 4.8 of this Agreement, in ppurchase price.
(b) On-site Affo able Housing Units. e City shall acquire the On-site Affordable
Housing Units, as defined i Section 1.1 hereof, or $180,000 each , for a total purchase price of
$1,080,000.
Section 9.2 Form of Dee .
The Developer shall convey t e City title to the City Parking Condominium Unit and
On-site Affordable Housing Units by anty Deed ("Deed").
The City shall, at its cot, properly file he Deed for recordation among the land records
in the office of the Johnson unty, Iowa Recor
S/ghh
9.4 Abstr t of Title.
Tveloper, tits expense, shall pro\ae
bstract of Title on the subject property
continueugh the ate of the recording of tclaz 'on of Horizontal Property Regime for
examinaty the ty. The Developer shall r said bstract to City at least 60 calendar
days priohe d e of Closing, after which tty shat ave 30 calendar days to examine
same ande a p eliminazy title opinion. The act shall wme the property of the City at
the timeeli ery of the Deed for the paand such bstract shall show good and
merchantitl in the City in conformity withAgreement, wa law and the title standards
of the Ioa Bar Association, and shall shoe free and cle of all taxes, encumbrances,
easementenants, reservations and restrictixcept as otherw a agreed to herein, which
shall be ct to approval of City after examn of the abstract title and review of the
specific tof any easements and restrictionsding, but not limite to, zoning ordinances,
existing easements, restrictions or reservations.
Section 9.5 Time and Place for Closing and Delivery of Deed.
If the conditions precedent to closing set forth in Section 9.6 have been satisfied, the
Developer shall deliver the Deed and possession of the City Parking Condominium Unit and the
Thursday, April 27, 2017 Page 22
On-site Affordable Housing Units to the City on or before 30 days after the issuance of the date
of the Certificate of Completion, or on such other date as the parties hereto may mutually agree
in writing (the "Closing Date"); provided, however, that in the event the conditions pre ent to
closing hav, not been satisfied such that closing does not occur by the Closing Date City will
retain the e owedds in accordance with Section 4.8 of this Agreement and, a Developer
will be in d ault of the terms of this Agreement pursuant to Section 15.1(a) o s Agreement.
Delivery of Deed shall be made at the principal office of the City on the - osing Date and the
City shall acc t such delivery and provide Developer with the co eration described in
Section 9.1 abo e.
Section
The City's o igation to accept title and posse i of the City Parking Condominium
Unit and the On-site ffordable Housing Units on ity Acquisition Closing Date shall be
subject to satisfaction oVn
onditions edent:
(a) The Develoateri mpliance with all of the terms and provisions of
this Agreement.
(b) City inspected Parking Condominium Unit and On-site Affordable
Housing Units n that said units are built in compliance with the final
plans and specifio by City.
(d) Developer's ass#fment of wary 'es and bonds for architectural and construction
services to City.
(e) Certificates o occupancy.
(i) City appr val of the Declaration of Submissi of Property to Horizontal Property
Regime p ant to Iowa Code Section 499B.
ARTICLE X. INSURANCE
10.1. Insurance Requirements.
(a) Upon completion of construction of the Minimum Impro ents and at all times
prior to a Termination Date, the Developer shall maintain, or cause to b maintained, at its cost
and a ense (and from time to time at the request of the City shall furnish roof of the payment
of premiums on) insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Imp vements under
a policy or policies covering such risks as are ordinarily insured through property icies against
risk by similar businesses, including (without limitation the generality of the fore g) fire,
extended coverage, vandalism and malicious mischief, explosion, water damage, demolition
cost, debris removal, and collapse in an amount not less than the full insurable replacement value
Thursday, April 27, 2017 Page 23
of the Minimum Improvements, but any such policy may have a deductible amount of not more
than $250,000. No policy of insurance shall be so written that the proceeds thereof will produce
less than the minimum coverage required by the preceding sentence, by reason of co-insurance
provisions or otherwise, without the prior consent thereto in writing by the City. term "full
insurable replacement value" shall mean the actual replacement cost the Minimum
Improvements (excluding foundation and excavation costs and costs of un rground flues, pipes,
drains and o0�er� uninsurable items) and equipment, and shall be dete "ned from time to time at
the request othe City, but not more frequently than once every ee years, by an insurance
consultant or in urer selected and paid for by the Developer and proved by the City.
(ii) omprehensive general public liabilitynsurance, including personal injury
liability for injurie to persons and/or property, inc ding any injuries resulting from the
operation of automob es or other motorized vehicles nor about the Development Property, in
the minimum amount f each occurrence/foryear of $1,000,000.
(iii) Such o er insurance,orker's compensation insurance respecting
all employees of theDevelo er, in such customarily carried by like organizations
engaged in like activitiesof c parable lity exposure; provided that the Developer
may be self-insured with respec to all ors liability for worker's compensation.
(b) All insurance require by this Article X to be provided prior to the Termination
Date shall be taken out and main t " ed in responsible insurance companies selected by the
Developer which are authorized un the laws of the State of Iowa to assume the risks covered
thereby. The Developer will dep sit ually with the City copies of policies evidencing all
such insurance, or a certificate certifi tes or binders of the respective insurers stating that
such insurance is in force and ffect. Unl s otherwise provided in this Article X, each policy
shall contain a provision tha the insurer sh 1 not cancel or modify it without giving written
notice to the Developer the City at le t thirty (30) days before the cancellation or
modification becomes effe tive. Not less than fteen (15) days prior to the expiration of any
policy, the Developer sha furnish the City evide a satisfactory to the City that the policy has
been renewed or replac by another policy confo ng to the provisions of this Article X, or
that there is no neces ty therefor under the terms ereof. In lieu of separate policies, the
Developer may mai ain a single policy, or blanket r umbrella policies, or a combination
thereof, which pro " e the total coverage required here' in which event the Developer shall
deposit with the C" y a certificate or certificates of the re ective insurers as to the amount of
coverage in force pon the Minimum Improvements.
(c) a Developer agrees to notify the City imine tely in the case of damage
exceeding $2 0,000 in amount to, or destruction of, the Minimum provements or any portion
thereof resu ing from fire or other casualty. Net Proceeds of any s h insurance shall be paid
directly to a Developer, and the Developer will forthwith repair, rec struct and restore the
Minimu Improvements to substantially the same or an improved cond "on or value as they
existed rior to the event causing such damage and, to the extent necessary accomplish such
repair reconstruction and restoration, the Developer will apply the Net ceeds of any
ins ance relating to such damage received by the Developer to the payment or reim ement of
the costs thereof.
Thursday, April 27, 2017 Page 24
(d) The Developer shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether the Net Proceeds of insurance received by the Developer for
such purposes are sufficient.
(e) Nothing herein shall waive any of the defenses of govemmentaljvzrmunity available
to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 asit no exists and as it may
be amended from time to
ARTICLE XI. ANNUAL
Section 1 Annual Certification. To assist the ity in monitoring and performance of
the Developer here der, a duly authorized officer of a Developer shall annually provide to the
City: (a) proof that al d valorem taxes on the D elopment Property have been paid for the
prior fiscal year; (b) pr f of satisfaction of a insurance requirements in Article X; (c)
submission of the annual t ant housing re rt for the Off-site Affordable Housing Units
pursuant to Section 2.1(b) of is
examined the terms and provision c
during the preceding twelve (12) r,
fulfillment of any of the terms and c
event which, with the lapse of time
Default) is occurring or has occurre<
the signer is aware of any such d
7n ;and, (d) certification that such officer has re-
greement and that at the date of such certificate, and
the Developer is not, or was not, in default in the
ns of this Agreement and that no Event of Default (or
giving of notice, or both, would become an Event of
he date of such certificate or during such period, or if
t or Event of Default, said officer shall disclose in
such statement the nature thereo its period o existence and what action, if any, has been taken
or is proposed to be taken wi respect theret Such statement, proof and certificate, in the
form attached hereto as Exh' it M, shall be pr ided not later than November 1 of each year,
commencing November 1, 19, and ending on vember 1, 2027, both dates inclusive. Upon
certification by the Deve per on or before Nov ber 1, 2019, the City will calculate an
increment in accordance ith the Ordinance, which establishes a base value as of January 1,
2016.
XII. ASSIGNMENT AND TRANSFER
Section 12.1. Status of the Developer; Transfer of Su stantiall All Assets. As security
for the obligation of the Developer under this Agreement, th Developer represents and agrees
that, prior to the ' suance of the Certificate of Completion and p 'or to the Termination Date, the
Developer willmaintain existence as an adequately -capitalized ited liability company and
will not wind or otherwise dispose of all or substantially all of th Development Property and
Minimum hn rovements, or assign its interest in this Agreement to other party unless (i) the
transferee p nership, corporation, limited liability company or individ 1 assumes in writing all
of the obli ations of the Developer under this Agreement and (ii) the 'ty consents thereto in
writing i advance thereof, in which case the Developer may be releas d of its obligations
hereund Notwithstanding the foregoing, however, or any other provisions f this Agreement,
(a) Developer may transfer its interest in and to this Agreement to any a liate which is
controlled by, under common control with or controls Developer or to any entit that acquires
all or substantially all of the assets of the Developer or to any successor to D eloper by
consolidation, merger, or otherwise, and (b) the Developer may (1) pledge any and/or f its
Thursday, April 27, 2017 Page 25
assets as security for any financing of the Minimum Improvements; (2) assign its rights under
this Agreement to a third party, provided such assignment shall not release the geveloper of its
obligations hereunder, and the City agrees in writing that Developer may/assiits interest under
this Agreem such purpose; and (3) the Developer may transfer itship interest to a
third -party under anangement whereby Developer will lease the Devnt Property back
and continue to satisfy a requirements of this Agreement.
ECONOMIC DEVELOPMENT GRANTS
Section 13.1. Economic Develo meet Grants. ) For and in consideration of the
obligations being assumed by a Developer hereund , and in furtherance of the goals and
objectives of the Urban Renewal an and the Urban ewal Act, the City agrees to make up to
nine (9) annual Economic Devel ment Grants the Developer, subject to the Developer
having received a Certificate of Co
terms of this Agreement and subject
commence on June 1, 2021 and end of
$4,020,292, whichever is earlier. All a
per fiscal year of the Tax Increments
first) collected by the City with resp
Property pursuant to Section 403.19 0�
(without regard to any averaging ylis
excluding any interest that may a
etion an eing and remaining in compliance with the
the t s of this Article XIII. The annual grants shall
lune , 2029, or when the total of all grants is equal to
u ants
shall be equal to one hundred percent (100%)
ess the total grant amount of $4,020,292 is reached
the Minimum Improvements on the Development
ie rban Renewal Act under the terms of the Ordinance
ma otherwise be utilized under Section 403.19 and
then prior to payment to the Developer) during the
preceding twelve-month penod respect o\th
Development Property and the Minimum
Improvements, but subject to stment andditions precedent as provided in this Article
(such payments being referr collectively a"Economic Development Grants").
(b) The obligati of the City to make an Economic Development Grant to the
Developer in any year ecified above shall be s ject to and conditioned upon the timely
filing by the Develop all previous annual stat ents, proofs and certifications required
under Section 11.1 er f and the City Manager's proval thereof, which will not be
unreasonably withhe Beginning with the November 1, 019 certification, if the Developer's
annual statement, an/
and certification is timely filed an contains the information required
under Section 11. d the City Manager approves of the e, the City shall certify to the
County prior to, ber 1 of that year its request for the av 'lable Tax Increments resulting
from the assess s imposed by the County as of January 1 of t year, to be collected by the
City as taxes a aid during the following fiscal year and which s 11 thereafter be disbursed to
the Develop' o June 1 of the following fiscal year. (For exampl if the Developer and the
City each o ertify on November and December 2019, respectiv the first Economic
Development ant would be paid to the Developer on June 1, 2021).
(c) In the event that the annual statement, proof or certificate require&IQbe delivered
by the Developer under Section 11.1 is not delivered to the City by November 1 of any year, the
Developer recognizes and agrees that the City may have insufficient time to review and approve
the same and certify its request for Tax Increments to the County and that, as a result, no
Economic Development Grant may be made to the Developer in respect thereof. The City
covenants to act in good faith to appropriately review and consider any late certification on the
Thursday, April 27, 2017 Page 26
part of the Developer, but the City shall not be obligated to make any certification to the County
for the available Tax Increments or make any corresponding payment of the Economic
Development Grant to the Developer if, in the reasonable judgment of the City, it is not able to
give appropriate consideration (which may include, but not be limited to, specific di ussion
before the City Council at a regular City Council meeting with respect the o) to the
Developer's certip6ation due to its late filing. In the event Developer fails timely file an
annual statement, roof or certificate due to an Unavoidable Delayand, as esult, an Economic
Development Gr t cannot be make, Developer may give written note to the City and, if the
City finds that De eloper's failure is due to an Unavoidable D y, the missed Economic
Development Grant shall be made in the year succeeding a last scheduled Economic
Development Grant u der Section 13.1, subject to Developer' ding under Section 11.1 and all
other provisions of thi Article XIII with respect to such ant, it being the intention of the
parties to allow up to nin (9) annual Economic Develop nt Grants in an aggregate amount not
to exceed $4,020,292, if D veloper is in compliance wi this Agreement.
(d) The total, aggreg a amount of all conomic Development Grants under this
Agreement shall not exceed $4, 20,292. Each conomic Development Grant shall be equal to
one hundred percent (100%) of 1 Tax Incr ents collected per fiscal year in respect of the
assessments imposed on the Devel ment P operty and Minimum Improvements as of January
1, 2019, and on January I of each of e to owing eight (8) years, until the total, aggregate of all
such Economic Development Grants e s no more than the sum of $4,020,292. The final grant
shall be adjusted, if necessary, if paymof 100% of Tax Increments for that grant would result
in total, aggregate Economic Devel me t Grants in an amount exceeding $4,020,292. Such
Economic Development Grants sha at all t es be subject to termination in accordance with the
terms of this Article XIII and icle XV. ereafter, the taxes levied on the Development
Property and Minimum Improve ents shall be ivided and applied in accordance with the Urban
Renewal Act and the Ordinanc . It is recognized y all parties that the total aggregate amount set
forth above is a maximum ount only and that t e actual payment amounts will be determined
after the Minimum Improv ents are completed the valuations of said Improvements have
been determined by the Cit Assessor.
(e) In the eve t that any certificate filed by th Developer under Section 11.1 or other
information available o the City discloses the existenc or prior occurrence of an Event of
Default that was not ured or cannot reasonably be cured u er the provisions of Article XV (or
an event that, with a passage of time or giving of notice, o both, would become an Event of
Default that canno reasonably be cured under the provisions o Article XV), the City shall have
no obligation th reafter to make any further payments to th Developer in respect of the
Economic Deve opment Grants and may proceed to take one or in e of the actions described in
Article XV her of.
SectioA 13.2. Source of Grant Funds Limited. (a) The Econom Development Grants
shall be p yable from and secured solely and only by amounts depose d and held in the
AUGUSTA PLACE, LLC TIF Account of the City. The City hereby coven is and agrees to
maintain the Ordinance in force during the term hereof and to apply the in ental taxes
collected in respect of the Minimum Improvements and allocated to the AUGUS PLACE,
LLC TIF Account to pay the Economic Development Giants, as and to the extent set h in
Thursday, April 27, 2017 Page 27
Section 13.1 hereof. The Economic Development Grants shall not be payable in any�er by
other tax increment revenues or by general taxation or from any other City funds.
(b) Notwithstanding the provisions of Section 13.1 hereof, the CX shall have no
obligation to make an Economic Development Gr/an
the Developer if a y time during the
term hereof the City receives an opinion of its legasel or a control ' g decision of an Iowa
court having jurisdiction over the subject matteof to the a ect that the use of Tax
Increments resultin om inimum Improvemfund an onomic Development Grant
to the Develop , as contempla d under said Sec13.1, is of authorized or otherwise an
appropriate project activity permd to be undertathe ty under the Urban Renewal Act
or other applicable provisions of th Code, as then itut . Upon receipt of such an opinion
or decision, the City shall promptl forward a cof he same to the Developer. If the
circumstances or legal constraints gi 'ng rise to t' 'on or decision continue for a period
during which two (2) Economic Deve opment Grould otherwise have been paid to the
Developer under the terms of Section 3.1, the ay terminate this Agreement, without
penalty or other liability to the Developer by writtece to the Developer.
(c) The City makes no representati
to the Developer as the Economic Deve
City in any manner be liable to the D
Increments actually collected and held in
of the amounts thereof) to the payment c
as and to the extent described in this Arta
Section 13.3. Use of Oth
free to use any and all Tax
Development Property unrelat
assessed or actual value due to
any available Tax Increments
Development Grants under Sec
may lawfully be used pursuan
have no obligations to the De el
Section 14.1.
•espect to the amounts that may finally be paid
Grants, and under no circumstances shall the
so long as the City timely applies the Tax
iUSTA PLACE, LLC TIF Account (regardless
momic Development Grants to the Developer,
er Tax icremen . Subject to this Article XIII, the City shall be
Incre nts collect in respect of increases in valuation on the
ed to onstruction o the Minimum Improvements (i.e. increases in
Irket factors) an other properties within the Project Area, or
r suiting from the spension or termination of the Economic
on 13.1 hereof, for y purpose for which the Tax Increments
to the provisions of Urban Renewal Act, and the City shall
oper with respect to the se thereof.
►V \�/1
TION
(a) Except fo any defect resulting from an actionof e C`ty or a third party after the
conveyance of the Ci Parking Condominium Unit and On-S`te fordable Housing Units to the
City pursuant to cle IX hereof, the Developer releases the ity and the governing body
members, officers, agents, servants and employees thereof (herei after, for purposes of this
Article IXV, the " ndemnified parties") from, covenants and agrees t t the indemnified parties
shall not be lia a for, and agrees to indemnify, defend and hold harmle the indemnified parties
against, any loss or damage to property or any injury to or death of any erson occurring at or
about or resulting from any defect in the Minimum Improvements.
Thursday, April 27, 2017 Page 28
(b) Except for any willful misrepresentation or any willful or wanton misconduct or
any unlawful act of the indemnified parties, the Developer, or its successors or assigns, agr es to
protect and defend the indemnified parties, now or forever, and further agrees to d the
indemnified parties harmless, from any claim, demand, suit, action or other p reedings
whatsoever by any person or entity whatsoever arising or purportedly arising om (i) any
violation of y agreement or condition of this Agreement (except with resp t to any suit,
action, deman or other proceeding brought by the Developer against the ' y to enforce his
rights under this greement), (ii) the acquisition and condition of the Deve p'ment Property and
the construction, ' stallation, ownership, and operation of the Minimu provements (except
ownership and op ation of the City Parking Condominium Unit d On -Site Affordable
Housing Units after conveyance of same to the City) or (iii) hazardous substance or
environmental contain ation located in or on the Development operty relating to conditions
caused by Developer aft the effective date of this Agreement.
(c) The indemnifi d parties shall not be liable f any damage or injury to the persons
or property of the Developer r its officers, agents, se is or employees or any other person
Mi
who may be on or about the imum Improvements ,to any act of negligence of any person,
other than any act of negligence n the part of any h indemnified party or its officers, agents,
servants or employees.
(d) All covenants, stipulate
contained herein shall be deemed to
obligations of the City, and not of
employee of the City in the individual
(e) The provisions
(f) Nothing herein sligg
to the City of Iowa City, Iow
be amended from time to time
ns, py6Aises, agreements and obligations of the City
b t covenants, stipulations, promises, agreements and
overning body member, officer, agent, servant or
a ity thereof.
ticle XI shall survive the termination of this Agreement.
ve any of th defenses of governmental immunity available
Code of low Section 670.4 as it now exists and as it may
XV. DEFAULT AND REMEDIES
Section 15.1. Ev nts of Default Defined. The to owing shall be 'Events of Default"
under this Agreement d the term "Event of Default" sha mean, whenever it is used in this
Agreement, any one l more of the following events:
(a) Fail e by the Developer to cause the construction f the Minimum Improvements
to be commenc d and completed, and the City Parking Con ominium Unit and On-site
Affordable Ho ing Units to be conveyed to City pursuant to he terms, conditions and
limitations of icle II, V, VI and IX of this Agreement;
,'Transfer of any interest in this Agreement or the assets f the Developer in
the provisions of Article XII of this Agreement;
(c) Failure by the Developer to substantially observe or perform any covenant,
condition, obligation or agreement on its part to be observed or performed under this Agreement;
Thursday, April 27, 2017 Page 29
(d) If the holder of any Mortgage on the Development Property, or any improvements
thereon, or any portion thereof, commences foreclosure proceedings as a result of any default
under the applicable Mortgage documents;
(e) the Developer shall:
(A file any petition in bankruptcy or for any/1zation,rrangement,
composition, rea 'ustment, liquidation, dissolution, or similar rnited States
BankruptcyAct o 978, as amended, or under any similar federal
(B) kake an assignment for the benefit of its pfeditors; or
(C) adkit in writing its inability to pay jtss debts generally as they become due;
[630
(D) be adj icated a bankrupt or ' solvent; or if a petition or answer proposing
the adjudication of the Deve per as a bankrupt r its reorganization under any present or future
federal bankruptcy act or any imilar federal r state law shall be filed in any court and such
petition or answer shall not b discharged r denied within ninety (90) days after the filing
thereof; or a receiver, trustee or uidator of the Developer or the Minimum Improvements, or
part thereof, shall be appointed in y p ceedings brought against the Developer, and shall not
be discharged within ninety (90) da fter such appointment, or if the Developer shall consent
to or acquiesce in such appointment;
(l) If any representatio or w ty made by the Developer in this Agreement, or
made by the Developer m any written st ement or certificate furnished by the Developer
pursuant to this Agreement, sh 1 prove to hav been incorrect, incomplete or misleading in any
material respect on or as ozes
date of the issuan or making thereof.
Section 15.2. Remeon Default. Wheneve any Event of Default referred to in Section
15.1 of this Agreement o curs and is continuing, the 'ty, as specified below, may take any one
or more of the folio 'ng actions after (except in th case of an Event of Default under
subsections (d) or (e) f said Section 15.1 in which case ction may be taken immediately) the
giving of thirty (3 0) ays' written notice by the City to the eveloper and the holder of the First
Mortgage (but only/o the extent the City has been informed i writing of the existence of a First
Mortgage and bee provided with the address of the holder th of) of the Event of Default, but
only if the Even of Default has not been cured within said thi (30) days, or if the Event of
Default cannot asonably be cured within thirty (30) days and th Developer does not provide
assurances re nably satisfactory to the City that the Event of Defa It will be cured as soon as
reasonably po sible:
(a) / The City may suspend its performance under this AgreenXnt until it receives
assurances from the Developer, deemed adequate by the City, that the Deve er will cure its
default and continue its performance under this Agreement;
(b) The City may terminate this Agreement;
Thursday, April 27, 2017 Page 30
(c) The City may withhold the Certificate of Completion;
(d) The City may take any action, including legal, equitable or administrativ ction,
which may appear necessary or desirable to enforce performance and obserye of any
obligation, agreent, or covenant of the Developer, as the case may be, under th' Agreement;
or
(e) The City all be entitled to recover from the Developer, a the Developer shall
re -pay to the City, an unt equal to the most recent Economic Devel ment Grant previously
made to the Developer u der Article XIII hereof, and the City may ake any action, including
any legal action it deems n essary, to recover such amount from Developer.
Section 15.3. No Reine'dv Exclusive. No remedy herei onferred upon or reserved to the
City is intended to be exclusio of any other avail/tr:my or remedies, but each and every
remedy shall be cumulative an shall be in additry other remedy given under this
Agreement or now or hereafter ex ting at law or iny statute. No delay or omission to
exercise any right or power accru' g upon any deimpair any such right or power or
shall be construed to be a waiver th reof, but anyand power may be exercised from
time to time and as often as may be
Section 15.4. No Implied Wai
Agreement should be breached by any
waiver shall be limited to the particular
other concurrent, previous or subsequent
Section 15.5. Agreement t
Default occurs under this Article
other expenses for the collection
performance or observance of
herein contained, the party in d f
default the reasonable fees of uc
appropriately incurred by th part
Section 16.1.
Section 4.5, this
In the event any agreement contained in this
and thereafter waived by any other party, such
so waived and shall not be deemed to waive any
hereunder.
fYand the paiy
payments du
obligation or
ilt agrees that it
attorneys and s
not in default in
XVI. OPTION TO
Whenever any Event of
not in default shall employ attorneys or incur
or to become due or for the enforcement or
eement on the part of the party m default
s 11, on demand therefor, pay to party not in
ich other expenses as may be reasonably and
co ction therewith.
Terminate. Any time prior
may be terminated by the D
compliance with al Ymaterial terms of this Agreement and no
which has not beeo cured in accordance with the provisions o
City fails to com ly with any material term of this Agreement,
Developer of such failure, the City has failed to cure such nonc
of receipt of such notice, or, if such noncompliance cannot r
within thirty (30) days of receipt of such notice, the City has no
AGREEMENT
the Closing Date established in
oper if (i) the Developer is in
vent of the
has occurred
f icle XV hereof; and (ii) the
an after written notice by the
ompli ce within thirty (30) days
easonab be cured by the City
t provide ssurances reasonably
satisfactory to the Developer that such noncompliance will be cured as oon as reasonably
possible.
Thursday, April 27, 2017 Page 31
Section 16.2. Effect of Termination. If this Agreement is terminated pursuant to this
Article XVI, this Agreement shall be from such date forward null and void Wndofo further
effect; provided, however, that the City's rights to indemnification under Articlereof shall
in all events s ve and provided further that the termination of this Agreemot affect
the rights of an party to institute any action, claim or demand for damages su ered as a result of
breach or defaul of the terms of this Agreement by another party, or to r ver amounts which
had accrued and b me due and payable as of the date of such terminal n. In any such action,
the prevailing p shall be entitled to recover its reasonable a rey's fees and related
expenses incurred ' connection therewith (but only, in the case of the City, to the extent
permitted by applicab law).
ARTICLE XVII.
Section 17.1. Conflik of Interest. The Developer r resents and warrants that, to its best
knowledge and belief after a inquiry, no officer or ployee of the City, or its designees or
agents, nor any consultant or ember of the goveri g body of the City, and no other public
official of the City who exercis s or has exercised functions or responsibilities with respect
to the Project during his or her t ure, or who is i position to participate in a decision-making
process or gain insider informatio with regazd t the Project, has had or shall have any interest
direct or indirect, in any contract or ubcontrac , or the proceeds thereof, for work or services to
be performed in connection with the roj t or in any activity, or benefit therefrom, which is
part of the Project at any time during o a such person's tenure.
Section 17.2. Notices and Dem d A notice, demand or other communication under this
Agreement by any party to the other all- sufficiently given or delivered if it is dispatched by
registered or certified mail, postag prepai return receipt requested, or delivered personally,
and
(a) hm the cas of the Develop to Jesse Allen, Augusta Place, LLC, 215 N.
Linn St., Iowa Clty IA 5 245 (or if by mail,\ad
74, Iowa City IA 52244).
(b) In the ase of the City, to CE. Washington Street, Iowa City,
Iowa, 52240, Attn: ty Manager;
or to such other design ed individual or to such as any party shall have furnished
to the other in writing ' accordance herewith.
Section 17.3. mtl ! of Articles and Sections. Any titles o e several parts, Articles, and
Sections of this Agement are inserted for convenience of re ence only and shall be
disregarded in cg6sti i g or interpreting any of its provisions.
Section/17,y. Counterparts. This Agreement may be executed in !Ty—number of
.rpartsAach of which shall constitute one and the same instrument.
Sec$on 17.5. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Iowa.
Thursday, April 27, 2017 Page 32
Section 17.6. Entire Agreement. This Agreement and the exhibits hereto reflect the entire
agreement between the parties regarding the subject matter hereof, and supersedes and replaces
all prior agreements, negotiations or discussions, whether oral or written. This Agreement may
not be amended except by a subsequent writing signed by all parties hereto. On behalf of the
City, the City Manager is hereby authorized to amend, in writing, the timelines)set forth in
Articles IV, V an0I as may be reasonably necessary in accordance with Section E.5 herein.
Section 17.A Successors and Assigns. This Agreement is intendedto d shall inure to
the benefit of and binding upon the parties hereto and their respective su essors and assigns.
Section 17.8. Termination Date. With the exception of the C enants regarding the Off-
site Affordable Housi Units in place for 20 years pursuant to icle II of this Agreement, this
Agreement shall termin to and be of no further force or effect cdand after June 1, 2029, or upon
final payment of the 'co mic Development Grants, whichg er is sooner.
Section 17.9 Adi
administer the rights and
Section 17.10 Memorandt�
Memorandum of Agreement, in si
notice to the public of the exist
interests held by the City by virtue
of the City
The City Manager or designee shall
The parties agree to execute and record a
Ily/fhe form attached hereto as Exhibit O, to serve as
provisions of this Agreement, and the rights and
The Developer shall pay all costs of recording.
IN WITNESS WHEREOF, t Ci has caused this Agreement to be duly executed in its
name and behalf by its Mayor its seaNo be hereunto duly affixed and attested by its City
Clerk, and the Developer has c sed this A ement to be duly executed in its name and behalf
by AUGUSTA PLACE, L.L. .
(SEAL)
ATTEST:
By:
City C rk
AUGUSTA PLACE, LLC
By:
Jesse Allen, Manager
Un
Approved by:
City Attorney
OF IOWA CITY, IOWA
Thursday, April 27, 2017 Page 33
CITY OF IOWA CITY
STATE OF IOWA
COUNTY OF JOHNSON
On this day of , 20_, before c a Notary Public in
and for said C nty, personally appeared James A. Throgmorton a to me
personally known, who being duly sworn, did say that they are t Mayor and City Clerk,
respectively of the C of Iowa City, Iowa, a Municipal Corporatio ,created and existing under
the laws of the State o Iowa, and that the seal affixed to the fore oing instrument is the seal of
said Municipal Corpora 'on, and that said instrument was sigg4d and sealed on behalf of said
Municipal Corporation by uthority and resolution of its Cit Council and said Mayor and City
Clerk acknowledged said i trument to be the free act and eed of said Municipal Corporation
by it voluntarily executed.
in and for the State of Iowa
STATE OF
This instrument was acknowledged bef e m on this day of 2017, by Jesse
Allen, as Manager of AUGUSTA PLACE, LL
Notary �Pyblic in and for the State of Iowa
Thursday, April 27, 2017 Page 34
Exhibit A. Map of Urban Renewal Area
xEW,ox
City -University Project 1 Urban Renewal
N
s As Amended
///
A
8
5 WRTLE AV
TOS �
W SENTON ST
E
B•
xI4MVSYIW _
1
Urban renewal area boundary
1969 Original Area
2001 Amended Area
® 2012 Amended Area
® 201-6 Amended Area
1 W IfM
o nV eao .mo
0 9pVTN4FTE \
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p4 C dT
4� B 9i
11 /3P AST
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Thursday, April 27, 2017 Page 35
Exhibit B. Legal Description of Urban Renewal Area
1969 Original Area
Beginning at a point on the north R.O.W. line of Burlington Street where it mee the east bank
of the Iowa River; Thence easterly to the east R.O.W. line of vacated Front S et; Thence north
to the north R.O.W. line of vacated College Street; Thence east along sai .O.W. line to the
west R.O.W. line of Capitol Street; Thence north along said R.O.W. 1' e to the centerline of
Washington S eet; Thence east along said centerline to the centerli of Linn Street; Thence
south along sai centerline to the south R.O.W. line of Court Str t; Thence west along said
R.O.W. line to th east bank of the Iowa River; Thence northerly ong the east bank to the point
of beginning.
2001 Amended Area
Beginning at the northVR.
er of Lot 1 Lyman C oks Subdivision of Outlot 25; Thence
south along the east R.e of Gilbert Street t the south R.O.W. line of Prentiss Street;
Thence west along saR.O.W. line to is intersection with Linn Street; Thence
northeasterly along Ralsto the west R. W. line of Maiden Lane; Thence north to the
south R.O.W. line of Coet, Thence wes long said south R.O.W. line to the centerline of
Linn Street; Thence norsaid centerl' a to the centerline of Washington Street; Thence
west along said centerlie w t R. . line of Clinton Street; Thence north along said
west R.O.W. line to the .O.W. ' a of Iowa Avenue; Thence east along said north R.O.W.
line to the east R.O.W. Gilbert treet; Thence south along said cast R.O.W. line to the
point of beginning.
2012 Amended Ar/right-of-way
Beginning at the Nr of utlot 26, nal Town Subdivision; Thence south along the
eastern R.O.W. lineB en Street to whe a said R.O.W. ends at a point along the western
boundary of Block 2nd Addition; Th e northwesterly along R.O.W. line to a point
on the north R.O.Wthe Iowa Interstate Ra' road south of block 1, Lyon's 1st Addition;
Thence southwestesouth R.O.W. line of th Iowa Interstate Railroad north of block 3,
Lyon's 1st Additioce southeasterly along th south Railroad R.O.W. to the eastern
boundary of Van Bet south of the Railroad; Th ce along said eastern boundary of Van
Buren Street to the ht -of -way line of Kirkwood A enue; Thence east to a point 11' west
of the extended NEf lot 3, block 6, F.S. & E.W. L cas Addition; Continuing south to a
point 126', more r less, south of the R.O.W. line of the E Walley west of Diana Street and
south of lots 1, , and 3, block 6, R.S. Lucas Addition; Then westerly to a point on the east
R.O.W. line of a N -S alley west of lots 4 & 5, block 6, R.S. Lu s Addition; Crossing the alley
to the west R .W. line of said alley, continue south 7.5', more o less, to the NE corner of lot
30, HighIan Park Addition; Thence westerly to the NW comer of lot 31, Highland Park
Addition; ence southerly to the SW comer of said Lot 31; Crossin Highland Ct. to the NE
corner of of 15 Highland Park Addition; Thence southerly to the SE c er of Lot 9 Highland
Park Addition; Crossing Highland Ave. to the south R.O.W. line; Thenc westerly along said
south R.O.W. line to where it meets the Crandic Railroad; Thence south ong the Crandic
Railroad to the south R.O.W. line of Highway 6; Thence west along the south O.W. line of
Highway 6 to the eastern bank of the Iowa River; Thence southerly following said eastern bank
of the river to a point where the river bank meets the extended southern line of Sturgis Ferry
Park; Thence westerly to the SW corner of Sturgis Ferry Park; Thence continuing westerly to the
Thursday, April 27, 2017 Page 36
west R.O.W. line of Riverside Drive; Thence northerly along said west R.O.W. line to the
centerline of Highway 6; Thence easterly along said centerline to the western bank of the Iowa
River; Thence following the western bank of the Iowa River to the centerline of Myrtle Street
extended to the Iowa River; Thence west to the west R.O.W. line of Riverside Drive/State
Highway 1; Then northerly along said highway R.O.W. to the north R.O.W. line of Burlington
Street; Thence e t to a east bank of the Iowa River; Thence south to the south R.O.W. line of
Court Street; Th ce a terly along the south R.O.W. line of Court Street to the west R.O.W me
of Maiden Lane; Th ce south along said west R.O.W. line to Ralston Creek; �ience
southwesterly along a 4
south R.O.W. line tthe
R.O.W. line to a point h
to a point where the cen
Street; Thence north alon€
Subdivision of Outlot 25;
point of beginning. Also i
full width of the College S
2016 Amended Area
k to the south R.O.W. line of Prentiss Street;
rest R.O.W. line of Gilbert Street; Thence
it meets the extended centerline of Bowery
of Bowery Street meets the extended east
at east R.O.W. line to the northwest comer/of Lot I Lyman Cooks
Burlington Street to the
Town, and the alley and
Thence east ong said
south alotfg said west
Stre • ence easterly
F)Ift. line of Gilbert
east along the south R.O.W
,Lots 5 and 6 in Block 43, (
Beginning at a point on the north IN
R.O.W line of Gilbert Street; Thence S
where it intersects with the east R.O.M
Buren Street east R.O.W. line south to
Washington Street; Thence west along
where it intersects with the east R.
R.O.W. line of Gilbert Street north t tl
adjacent thereto.
line o owa Ave where it intersects with the east
m aid Iowa Avenue north R.O.W. line to a point
Van Buren Street; Thence south along said Van
t where it intersects with the south R.O.W. line of
ashington Street south R.O.W. line west to a point
f S. Gilbert Street; Thence north along the east
Thursday, April 27, 2017 Page 37
Lots 1-4, ar
Iowa, accor
Exhibit C. Lesal Description of Development Property
Y,
Thursday, April 27, 2017 Page 38
Lots 1
Original
Exhibit C-1. Legal Description of City Property
Thursday, April 27, 2017 Page 39
Lot 4, excel
to the plat U
Exhibit C-2. Legal Description of Church Property
Thursday, April 27, 2017 Page 40
Exhibit D. Minimum Improvements and Uses
Developer shall complete the following minimum improvements and uses on the
Development Property in accordance with the Development Agreement to which this Exhibit D
is attached and as detailed in Exhibit E — Concept Plan dated April 10, 2017 att hed hereto and
incorporated he ein. The project will consist of a building with a height of en (7) stories on
the interior of En Development Property and four (4) stories as sho on Exhibit Eon the
perimeter with the f lowing components:
1. Parking structure. two level parking structure will provi covered parking for the City's
use on the ground level approximately 60 spaces) and one 190 of parking above for residential
parking (approximately 7 spaces). The structured parki will be cast in-place concrete and
have adequate exterior o Wings so as to not require m hanical ventilation of this space. All
parking areas will be well it with LED fixtures. St#f and elevator access will be provided at
both the east and west side the parking structure.
a. Un -tirade Parking: AI hi
compact sized spaces on the o
spaces along the exit drive to ']
parking facility will be from the
measures approximately 187.5' x
be provided for use by City vehicl
designee. Any changes to the
Manager or designee prior to r
include the work detailedas
improvements, including b t t
parking facilities and mus a ppi
City Pazk' Condominium Unit shall consist of 55 non -
id level the parking structure and 5 non -compact sized
,A Str a for a total of 60 spaces. The entry and exit to the
Ile y o Van Buren Street. The main covered parking area
. An additional vehicular access to Gilbert Street will
y, except as otherwise authorized by the City Manager or
r and location of spaces must be approved by the City
Tu c 'on. It is anticipated that this aspect of the Project will
On ade Parking" in Exhibit D-1. Specifications of
mited to LED lighting, shall be consistent with other City
ved by e City Manager or designee.
2. Fire station er tY fid modifications t Ci Hall. Developer will modify the City Hall
northern entrances, adi g dock, enclosed du ster area, and the 2nd floor Fire Station outdoor
balcony in genera con rmance with the Cone tual Renderings attached to the Agreement as
Exhibit E. It is tici ated that this aspect of the roject will include the work detailed as "FS
Entry & Loadi Do/k" in Exhibit D-1.
The w b cony will have as much useab space (space available for persons not
occupied by equi ment) as that existing on the curren balcony (288 square feet (12' by 24')),
and wills rve a covered walk to the new northwest ntrance to City Hall. Developer will
install signage indicating the Fire Station entrance over a walk and be visible from Gilbert
Street. Acce to the City generator, and any similar equip ent that is located on the balcony,
must be ap roved by the City Manager or designee. The final Ian for the Fire Station entrance,
including signage, and balcony must be approved by the City's s design review committee.
3. Townhomes. A total of 26 Townhome-style residential units ill provide a visual screen
to the parking structure from the Iowa Avenue and Van Buren Street frtages. Townhomes will
be two stories each, stacked upon each other for a four story building helgkt lining the parking
structure. Each townhome will have its own front door access from the stre d back door
access from the parking structure.
Thursday, April 27, 2017 Page 41
4. Apartments. A total of 100 apartment units will be built on levels 3 through 7 above the
parking structure. There will be 6 one -bedroom, 67 two-bedroom and 18 three-bedroom units.
The 6 one -bedroom units to be purchased by the City (On-site Affordable Housing Units) shall
be approximately 550 square feet. Changes to the unit mix may be approved by the City
Manager or designee.
5. Soun Miti ation. Recognizing the proximity to the Iowa City Polic and Fire
Departments, sound mitigation strategy must be submitted and accepted b the Building
Official. Such s ategy should aim to minimize the impact of emergency siren including testing
of those sirens in a parking facility, to tenants in the apartments and tow mes.
6. Terrace. An tdoor terrace, of an area approximately 187' 62,' will be constructed
above the parking gara a on the same level as the lowest floor of artments and the third level
of townhomes. The outd or terrace will be accessible to all res# nts of the building and include
a well-maintained mix of ant material and patio amenities spdh as seating.
7. Preservation of Churc Deloper shall seek a rezoning of the former Unitarian
Universalist Church to a histo 'c devesignation under e City Code and shall perform certain
repairs, upgrades and maintenanc obligations. R rr and upgrades to the church shall include:
1) repair of damage done when th connect#on tween the church and the education building
was removed; repair shall be of simi buildin materials and blend seamlessly with the historic
building; 2) replacement of the hea ' g, v ntilation and air-conditioning systems for entire
building; and, 3) making the building a sible by installing an elevator serving each floor and
adding accessible restrooms. The Devel will ultimately remodel the Church for reuse by one
or more commercial endeavors.
8. Utility connections. The Veveloper All be responsible for relocating any utilities or
infrastructure in the project area at are impactcX by the project. This includes, but is not limited
to, water, sanitary and storm/
torm ewer, electric, col7unication and fiber optic lines, and radio
antennas.
9. Streetsca a enhanements. Sidewalks will be r ocated slightly northward along the Iowa
Avenue frontage to prow de more area for planting and enhance green space in front of each
townhome unit. This ealignment will require the Dev oper to replacement of street trees
between the sidewal and the curb and provide addition tree plantings near the townhome
entries. The specie , location and number of new street tree on Gilbert, Iowa and Van Buren
shall be approved y the City Manager or designee. Such trees hall be a minimum 2.5" caliper.
Any use of the ity right-of-way for planting or otherwise by e residents of the townhomes
requires the ap roval of the City in accordance with City Code.
10. Solar Power. The Developer is exploring the feasibility of the �f solar energy on site
and will incorporate solar into the Project if feasible as determined b the Developer and as
approved by the City Manager or designee.
Thursday, April 27, 2017
Page 42
Exhibit D-1. On -Grade Parking and Fire Station Entry and Loading Dock Report
McComas-Lacina Construction Spreadsheet Report Page 1
Scoff Witoy On Grade Parking 2/1312017 12.:17 PM
Phase oescdptlm Total Amount
DEMOLITION
2071.01 Demo:`General
Thursday, April 27, 2017 Page 43
Parking Lot emorBulldmg Demo
45,000
SITEWORK
2200.00
Earthwork
Grading/Cut 8 Fill
72,000
2510.01
Paving: Sidewalks
Sidewalks
13 500
2513.00
Paving: Concrete
Concrete Paving (sgydi
153.364
Granular Subbase (6')
26,339
2684.00
Paving: Parking Lines
Parking Lines
2,4
2600.00
Site Utilities
Site Utilities
.600
2800.00
Site Improvements
Site Improvements (Benches/TraslVElci
16 000
2900.01
Landscape: General
Landscaping
50 ON
ELECTRICAL
16001.00
Electrical Complete
Electrical (Lump SUM) _
B0,000
Thursday, April 27, 2017 Page 43
MCComds•Laclna Construction Spreadsheet Report Page 2
Scott Wiley On Grade Perking 2/13/2017 12:17 PM
\ Fshmato intal9
111
Thursday, April 27, 2017 Page 44
McComas-Lacina Construction Spreadsheet Report Page 1
Scott Wiley FS Entry 6 Loading Dock 2/13/2017 12:13 PM
.. Phase _ Dsscdpfbn
4 �� I'MouM
DEMOLITION
2613.00
2071.01 mo: General
m0 Entrance
12,000
De Loading Dock
14,000
Demo umpster Storage
5.500
Demo Generator Enclosure
3,500
Pavingthlis Demo
5,000
2510.01 Paving: Sidedvalks
Thursday, April 27, 2017 Page 45
Sidewalks
1,575
2613.00
Paving: Concret
Concrete Paving (sgyd
4,6
2900.01
Landscape: General
Landscaping
5,000
CONCRETE
3100.00
Concrete Items
Loading Dock/Ra n 1Entry
34,000
3400.40
Precast Concrete
Concrete Precast Deck (sgft)
5,835
Topping on Precast
1,800
MASONRY
4000.01
Division 4 Subcontractors
Building Entrance -- Block/Brick (T at Structur
78,750
Dumpster Enclosure
21,760
METALS
5500.00
Metal Fabrications
Metal Frames for Precast eck/Walkway
18,000
Metal Guardrail @ Deck
3,375
ELECTRICAL
16001.00
Electrical Compl
Generator Relocat uilding Entry/Site Lights
60,
Thursday, April 27, 2017 Page 45
McComas•Laclna Construction Spreadsheet Report Page 2
Scott Wiley FS Entry 6 Loader Dock 2/13/2017 12:13 PM
Thursday, April 27, 2017 Page 46
Exhibit E. Concept Plan
April 10, 2017
Thursday, April 27, 2017 Page 47
Conceptual Renderings
Thursday, April 27, 2017 Page 48
61,a2ed LiOZ'LZ1!ady'ffeps ngy
Conceptual Plans
MA AVENUE
Thursday, April 27, 2017 Page 51
Thursday, April 27, 2017 Page 52
Thursday, April 27, 2017 Page 53
Exhibit F. Certificate of Completion
WHEREAS, the City of Iowa City, Iowa (the "City") and Augusta Place, LLC, having an
office for the transaoion of business at , Iowa City, Iowa 52245 (the
"Developer"), did ono about the day of 2017, make, execute and deliver, each to
the other, an Agreemen ' for Private Development (the "Agreement"), wherein and whereby the
Developer agreqd,,in accordance with the terms of the Agreement, to develop and maintain
certain real prolid" located within the City and as more particularly described as follows:
Lots 1-4, and the rig 10' of the alley adjacent thereto, Block 44, giginal Town of Iowa City,
\ Iowa, according to the Plat thereof./
WHEREAS, the eement incorporated and contain certain covenants and restrictions
with respect to the devel man of the Development Pro y, and obligated the Developer to
construct certain Minim Improvements (as deft therein) in accordance with the
Agreement; and
WHEREAS, the Develop has to the esent date performed said covenants and
conditions insofar as they relate to a ponstruc ' n of said Minimum Improvements in a manner
deemed by the City to be in con rmance th the approved building plans to permit the
execution and recording of this certifi tion
NOW, THEREFORE, pursuant
covenants and conditions of the Agro
its successors and assigns, to co tract ttl
Property have been completed d perfon
absolutely and forever tenninat insofar as t]
Recorder of Johnson County, I3Ava, is hereby
filing of this instrument, to V a conclusive c
covenants and conditionsOf said Agreement
Improvements on the Devplopment Property.
All other
termination as
(SEAL)
ATTEST•
By:
City Clerk
on 6.6 of the Agreement, this is to certify that all
th respect to the obligations of the Developer, and
Minimum Improvements on the Development
i by the Developer and are hereby released
e pp
to the land described herein. The County
Lu
'zed to accept for recording and to record the
et ation of the satisfactory temunation of the
with r sect to the construction of the Minimum
ns of the Agreement shall
therein.
CITY OF IOWA
remain in full force and effect until
IOWA
By: \
Mayor
Thursday, April 27, 2017 Page 54
STATE OFiQWA
COUNTY OF
On this da}
and for said County, per on
personally known, who bei
respectively of the City of pe-Nr
the laws of the State of Iowa,
said Municipal Corporation,
Municipal Corporation by au1
Clerk acknowledged said inst
by it voluntarily executed.
of
CITY OF IOWA CITY
,/1'0 , before me a Notary Public in
ly appeared Z and , to me
duly sworn, did say at they are the Mayor and City Clerk,
City, Iowa, a Muni pal Corporation, created and existing under
nd that the seal a xed to the foregoing instrument is the seal of
that said insV6ment was signed and sealed on behalf of said
'ty and reso,16tion of its City Council and said Mayor and City
m t to be e free act and deed of said Municipal Corporation
Notary Public in and for the State of Iowa
Thursday, April 27, 2017 Page 55
Exhibit G. WAGE THEFT AFFIDAVIT
STATE OF
ss:
JOHNSON
Jesse Allen,
1. I am the Manager
AigustaPlacgLLC ("Devel
behalf of said Developer
said Developer of more
2.
duly sworn, state as follows:
of
") and have e authority to execute this affidavit on
any person,6r entity with an ownership interest in
Neither Developer nor any per or entity with an ownership interest of more
than 25% of Developer has e n adjudicated guilty or liable in any judicial or
administrative proceeding of co itting a repeated or willful violation of the
Iowa Wage Payment Collec on la the Iowa Minimum Wage Act, the Federal
Fair Labor Standards Act o any com arable state statute or local ordinance, which
governs the payment of w ges in the
This instrument was
5 years.
before me by`.lesse Allen on the day of
Notary Public inlaid for the State of Iowa
Thursday, April 27, 2017 Page 56
Exhibit H. TEMPORARY CONSTRUCTION AND CRANE SWING
AGREEMENT
This Agreem �i ade by and between Augusta Place, LLC, hereinafter eveloper" and
the City of Iowa City, owa, a " municipal corporation, hereinafter referred to as " ty."
WHEREAS, Augusta lane\', LC is the fee owner of certain real estate dressed as and legally
described as Lots 1-4 d erth 10' of the alley adjacent thereto lock 44, Original Town,
Iowa City, Iowa ("Devel0 m in roperty"); and
WHEREAS, Developer des' es\tAdevelop the Development P perty with an in -fill construction
project informally called "Ast Place", in Iowa City, wh' will include modifications to City
Hall to accommodate in ifi atio s to the Fire Station ntrance, vestibule, and loading dock
improvements; and
WHEREAS, Developer and th City have a red into an Agreement for the Private
Development of said property, with a memorand of said agreement having been recorded with
the Johnson County Recorder in B ok ge _ on 20_ ("Agreement for
Development");
WHEREAS, pursuant to said Agreem for Development and in order to accomplish the
Minimum Improvements described t in, including the improvements to City Hall, a
temporary construction easement is n ss
NOW, THEREFORE, IN MUTU4 CON$IRERATION OF THE PROMISES HEREIN, THE
DEVELOPERAUGUSTA PLAC LLC AND VE CITY AGREE AS FOLLOWS:
1. In consideration of De oper's promises erein, the City agrees to allow Developer to
temporarily fence and clos at area shown on\eXcavation
t attached hereto and incorporated
herein, pursuant to the limit tions set forth in thient agreement and the Agreement for
Development. The City fit er agrees to convey tooper a temporary construction easement
in, over and across that po ion of City's property dd and shown in Easement Exhibit A for
the purpose of facilitatin the Developer's demolitose items listed in Exhibit D-1 of the
Agreement and constru tion of a new entryway, l balcony, loading dock and screened
solid waste dumpster shown on the Concept Planed s Exhibit E D to the Agreement, the
granting of which sh 1 include necessary grading,tion piling of dirt, grading, restoration,
storage of material and equipment, and ingressess f persons and equipment to the
Temporary Easem t Area, as needed to complete srovem nts.
2. In consideration of the rights granted by the City herein, D\agains
Augusta Place, LLC
agrees to: \
a. secure the temporary easement area shown in Exhibit Aehicular or pedestrian
traffic by providing adequate pedestrian passage, adequate traffic ntrol, by providing
adequate signage, and by securing all open excavations from pedestrians, thereby ensuring
public safety; and
Thursday, April 27, 2017 Page 57
b. Use its best efforts to minimize the disruption to the operation of the municipal functions
of the City of Iowa City, particularly those of the Fire Department. To that end, a staging
and phasing schedule shall be approved by the City Manager or designee and strictly
adhered
3. City of Iowa ity, Iowa hereby further grants a temporary air rights I' ense to Augusta
Place, LLC, its age ts, employees, construction managers, contractors ub-contractors and
consultants to enter o er and encroach upon the Property described i xhibit during the
time needed for compl\sha
the Project to allow tower cranes to perate, extend, rotate and
swing over the Air Rigof said the Property, as further de ribed, depicted and defined in
Exhibit . The cranehment permitted hereby is lim' ed solely to the encroachment of
the boom over the Air rea and the Property and d snot include the right to carry any
loads over or across thhts Area or the Property a boom shall be of sufficient height
so that it does not inteany improvements I ated on the Property. The temporary air
rights license granted hterminate upon th earlier of (i) completion of the construction
activities on the Properre uire the use of a cranes, or (ii) June 1, 2019.
4. Redeveloper shall be respon ble for the removal, storage, and replacement of items
located within the easement which co u b damaged during the construction. Items include, but
are not limited to
5. Developer agrees to indemni , de d and hold the City harmless against any and all
claims for bodily injury, death or pr perty d age arising out of its actions and use of the public
right -of --way under this Agree ent, and t se of its contractors, subcontractors, agents,
employees and assigns specific y including an and all claims and/or liabilities which may be
alleged against the City as a r suit of its decisi\*ty
t Developer the rights granted herein.
Developer further agrees t carry Class II liurance in the minimum amounts of
$500,000 each occurrence, 1 million aggregateury, and $250,000 aggregate property
damage with contractual iability coverage incveloper shall furnish a certificate of
insurance evidencing sai valid insurance coverawhich certificate must be satisfactory
to the City. Develop r shall submit a certiinsurance to the City prior to the
commencement of co struction.
6. As soon as easonably feasible, Developer agrees to restore any and all portions of the
easement area in cordance with the plans approved by the 'ty to the satisfaction of the City. If
Developer fails o restore the easement area to the City's satisfaction as required in this
paragraph, the ity may restore the easement area, and the cost thereof shall be billed to
Developer for payment to City. Upon Developer's failure to pay aid billing, the removal costs
shall be cert' ed to Johnson County as a statutory lien and ass( ed against the Development
Property collected in the same manner as a property tax, as prov ed in Section 364.12(2)(e),
Iowa Cod (2017).
7. City and Developer agree this Temporary Agreement shall (main in effect until
completion of the Project and restoration of the easement area pursuant to Noection 6 herein, with
an anticipated commencement and completion date as set forth in ection 5.1 of the
Development Agreement described above.
Thursday, April 27, 2017 \ Page 58
8. Notwithstanding the above, Developer agrees to cease and desist its temporary use and
closure of the easement area and to remove any and all obstructions from said easement area
when any one of the following events occurs: a) breach of this Agreement or b) breach of the
Development Agr¢%ent.
9. This Agreement hall constitute a covenant running with the land, and s all be binding
upon and shall inure to a benefit of the respective heirs, successors in inter t, and assigns of
both parties.
10. This Temporary C struction Easement Agreement shall be ecorded in the Johnson
County Recorder's Office, at eveloper's expense.
Dated this day of 20_
CITY OF IOWA CITY \ Augusta(Place, LLC
Jesse Allen Manager
Mayor Member
Approved by:
City Attorney's Office
STATE OF IOWA )
)s:
COUNTY OF JOHNSON )
On this da of 20_, before me a Notary Public in
and for said County, so ly appeared and to me personally
known, who being ly s om, did say that they are th Mayor and City Clerk, respectively of
the City of Iowa C' , Io a, a Municipal Corporation, cr ted and existing under the laws of the
State of Iowa, anthat a seal affixed to the foregoing in trument is the seal of said Municipal
Corporation, th said instrument was signed and s led on behalf of said Municipal
Corporation by aut ority and resolution of its City Counci and said Mayor and City Clerk
acknowledgeq sai instrument to be the free act and deed of id Municipal Corporation by it
voluntarily eke ed.
Notary Public in and for th6\State of Iowa
Thursday, April 27, 2017 Page 59
STATE OF IOWA
CfiTi1w1'Tw--1Lw•MmrieCMMA u
This instn
)SS
by
Thursday, April 27, 2017 Page 60
Exhibit 1. Opinion of Counsel
City of Iowa City
410 E. Washington Street
Iowa City, Iovya,52240
RE: Agree ent for Private Redevelopment by and between the ity of Iowa City,
Iowa an Augusta Place, LLC
Dear City Representatives
I have acted as coun 1 for Augusta Place, LLC., an wa limited liability company (the
"Developer"), in connection ith the execution and deliv y of a certain Agreement for Private
Development (the "Developm t Agreement") between e Company and the City of Iowa City,
Iowa (the "City") dated as of 2017.
I have examined the o4nal certified opy, or copies otherwise identified to my
satisfaction as being true copies, of ite followi
(a) The organizatio\ an5V96erating agreement of the Developer;
(b) Resolutions of eveloper at which action was taken with respect to the
transactions c e' by this opinion;
(c) The Devel p int A ement;
and such other documents r -o ds as I hav deemed relevant and necessary as a basis for the
opinions set forth herein.
Based on the p i t law, the foregoing a amination and such other inquiries as I have
deemed appropriate, I f the opinion that:
I' The eloper was duly organized d validly exists as a limited liability
company under t 1 s of the State of Iowa and is quali ed to do business in the State of Iowa.
The Develope a Mull power and authority to execu ,deliver and perform in full the
Development, gr„ ement; and the Development Agreeme\to
ly and validly authorized,
executed and el' 'ered by the Company and, assuming due anion, execution and delivery
by the City is in full force and effect and is a valid andbinding instrument of the
Developer e orceable in accordance with its terms, excesame may be limited by
bankrupt , nsolvency, reorganization or other laws relatiaffecting creditors' rights
The execution, delivery and performance by the Develop of the Development
Agre ent and the carrying out of the terms thereof, will not result in violate of any provision
of, or in default under, the articles of organization and operating agreement of lhq.Developer or
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, o-Aier statute,
Thursday, April 27, 2017 Page 61
rule, regulation or restriction to which the Developer is a party or by which it or its property is
bound or subject.
3. There a e no actions, suits or proceedings pending or threatened against or
affecting the Develope in any court or before any arbitrator or before or by any overnmental
body in which there is reasonable possibility of an adverse decision which ould materially
adversely affect the busin ss (present or prospective), financial position or r ults of operations
of the Developer or whic in any manner raises any questions affecti the validity of the
Agreement or the Developer ability to perform its obligations thereun r.
Sincerely,
Thursday, April 27, 2017 Page 62
Exhibit J. Promissory Note
i
r value received, Augusta Place, LLC (hereinafter "Borrower"), whose, home office is
located Iowa, _, promises to pay the Ci fy of Iowa City
(hereinafte 'ty"), municipal corporation whose address is 410 E. Was limgton Street, Iowa
City, Iowa 2� the rincipal amount of $650,831.00, plus interest therein at the rate of 3.84%
per annum in a anner described below.
This Prom's Note (hereinafter "Note") is evidence of a,✓✓debt running from Borrower to
City resulting fro a loan from the City in the Principal Arhount $650,831.00 and interest
accruing at the rate o 3.84% per annum, pursuant to AGREEMENT FOR PRIVATE
DEVELOPMENT B ND BETWEEN THE CITY OF IOWA CITY, IOWA, AND
AUGUSTA PLACE, dated 2017, (hereinafter "Agreement") a
Memorandum of said A ent being recorded on 2017 in Book Page
of the records of the on County, Iowa, R order, and constitutes Borrower's promise
to repay said loan according, t t terms and condi)fons stated in said Agreement and this Note.
Term: Borrower shall not b6, bh`ga
interest if Borrower satisfies the rrl
Minimum Improvements, as definex
issued in accordance with Section 6.
become immediately due and payable.
of Completion is issued, the City shall
Interest: Interest shall begin to
computed on the basis of 365 days
Payment Location: All p
Street, Iowa City, IA 52240
BORROWER:
I
Name
3 to a payments toward the Principal Amount or
of Agreement. If Borrower does not complete the
the,/Agreement, and a Certificate of Completion is not
e Agreement, the Principal Amount and interest shall
IN rrower fulfills the terms of the Note and a Certificate
Xw e the Note in full.
{ue on thX to of this Note and shall be
year and ca u ted on a daily rate.
nts shall be mad t the City of Iowa City at 410 E. Washington
such other place as be designated in writing by the City.
Thursday, April 27, 2017 Page 63
Exhibit K Minimum Assessment Agreement
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of
2017, by and among the CITY OF IOWA CITY, IOW ("City"),
Augusta Place, LLC, an Iowa limited liability corporation, ("Developer"), the CITY
ASSESSOR of the City of Iowa City, Iowa ("Assessor").
WHEREAS, it is ontemplated that the Developer will und$rfake the development of an
area ("Project") within th City and within the "City-Univer ' y Urban Renewal Area," as
amended; and
WHEREAS, the City is aking a significant gr of funds to the developer which will
allow the Developer to construct th Project; and
WHEREAS, the City will be
generated from the Project; and
WHEREAS, pursuant to Iowa Cc
Developer desire to establish a minimum
to the Agreement for Private Developmer
WHEREAS, the City and
specifications for the Minimum ImI
such grant from the property tax revenues
.ion 403.6 (2017), as amended, the City and the
value for the land legally described in Exhibit C
;so have reviewed the preliminary plans and
to
;berected as a part of the development;
NOW, THEREFORE, Ae parties to this Minimum Assessment Agreement, in
consideration of the promises, ovenants and agreemen made by each other, do hereby agree as
follows:
1. Asf January 1, 2020, a full ass ssment shall be made fixing the
minimum actual taxable slue for assessment purposes for th land and Minimum Improvements
to be constructed/fa
n by the Redeveloper at not less th $14,384,905 after taking into
consideration anys such as "roll backs" which woud ducethe taxable value of the
property ("Minictual Value"). The parties hereto knowledge and agree that
construction of thum Improvements will be substantially c pleted on or before June 1,
2019.
/2..e Developer contemplates that a portion of the oject will be residential
condots which will be subject to the property tax "roll-bc "referred to previously.
The Ragrees that at the time of the execution of the declarati required by Chapter
499B Property (Condominiums) of the Code of Iowa (2017) attachment to the
declare executed by the Redeveloper, the City and the City A essor allocating a
portionimum Actual Value to each unit.
3. The Redeveloper agrees that the difference between the Minimum al Values
(as adjusted pursuant to paragraph 3 hereof) and the amount allocated to the r 'dential
Thursday, April 27, 2017 Page 64
condominium units (as set forth in paragraph 4 hereof) will be allocated to the remainder of the
Project.
4. The Minimum Actual Values (as adjusted pursuant to paragraph 3 here)f) herein
established shal be of no further force and effect and this Minimum Assessment greement
shall terminate oA December 31, 2023.
Nothing her 'n shall be deemed to waive the Developer's rights un r Iowa Code section
403.6(19) (2017), as endedNnovent,
to contest that portion of any actual valu ssignment made by the
Assessor in excess oum Actual Values (as adjusted purs an
to paragraph 3 hereof)
established herein. Ihowever, except as set forth in the rst paragraph of this Section
6 shall the Redeveloreduce the actual value assi ed below the Minimum Actual
Value (as adjusted pparagraph 2 and 3 hereof) es blished herein during the term of
this Agreement.
5. This Minimum A
Developer with the Recorder of
shall be promptly recorded by the
, at Developer's expense.
6. Developer has provided title op' ion to the City listing all lienholders of record
as of the date of this Assessment Agreem t a9d all such lienholders have signed consents to this
Assessment Agreement, which consents ark4dached hereto and made a part hereof.
7. Neither the preambles nor
intended to, or shall be construed a/,
Development between the City and D e
8. This Minimum A
upon the successors and assigns
(SEAL)
of this Minimum Assessment Agreement are
the terms of the Agreement for Private
e parties. N
CITY OF
By:
ATTEST:
By:
an
shall inure to the benefit of and be binding
A CITY, IOWA
, City
Augusta Place, LLC
Jesse Allen, Manager
ATTEST:
Thursday, April 27, 2017 Page 65
LMA
STATE OF IOWA )
COUNTY OF JOHNSON )
On this da of 20� be 'o e a Notary Public in
and for said County, person appeared and ,; me personally known,
who being duly sworn, did say at they are the Mayor and City C respectively of the City of
Iowa City, Iowa, a Municipal rporation, created and exis ' der the laws of the State of
Iowa, and that the seal affixed to the foregoing instrum t ' the seal of said Municipal
Corporation, and that said ins ent was signed and on behalf of said Municipal
Corporation by authority and reso tion of its City C ci and said Mayor and City Clerk
acknowledged said instrument to be a free act and of said Municipal Corporation by it
voluntarily executed.
STATE OF IOWA
COUNTY OF JOHNSON
This instrument was acknov
, as member
Public in and for the State of Iowa
Dd ed fore me n this _
Au to Place, L C.
Notary P blit in
day of , 20_, by
State of Iowa
Thursday, April 27, 2017 Page 66
CERTIFICATION OF ASSESSOR
The undersigned, having reviewed the plans and specifications for Minimum
Improvements to be constructed and the market value assigned to the land on which the
Minimum Impro ements are to be constructed for the development, and being the opinion that
the minimum mar t value contained in the foregoing Minimum Assessm Agreement appears
reasonable, hereby ertifies as follows: The undersigned Assessor, bein egally responsible for
the assessment of property subject to the development, upo completion of Minimum
Improvements to be de on it and in accordance with the Mini um Assessment Agreement,
certifies that the actual lue assigned to such land, building an equipment upon completion of
the redevelopment shall of be less than $ a er taking into consideration any
factors such as "roll -back " which would reduce the tax le value of the property. Of this
amount, Dollars ($ ) is
determined to be the valu of the land and Dollars
($ ) the value o the buildings ther6n until termination of this Minimum
Assessment Agreement pursuant t9 the terms hereo .
STATE OF IOWA
COUNTY OF JOHNSON
Subscribed and
Iowa City, Iowa.
for Iowa City, Iowa
Date
E
before me by
Assessor for
Notary Public in and Vr Johnson County, Iowa
Date
Thursday, April 27, 2017 Page 67
Exhibit L. RESERVED
Thursday, April 27, 2017 Page 68
Exhibit M. Annual Certification
Date:
(due annually no later than November 1)
I, t e undersigned, having knowledge of the Developer's Agre ent between
the City of Iowa City and Augusta Place, LLC, dated Z2017anda operations of
the Development Prop hereby certify the following;
1. All ad valorem es on the Development Property have bthe prior fiscal
year, as evidenced by the a tached documentation; and
2. (A) I have re-exam, ed the terms and provisions the Development Agreement and
can affirm that during the pre eding twelve (12) month the Developer is not, or was not, in
default in the fulfillment of any f the terms and condit ns of said Agreement (including but not
limited to the affordable housing quirements of Se month
and that no Event of Default (or
event which, with the lapse of tim or the gi,
Default) is occurring or has occurred s of the
OR
(B) the undersigned has re -ex d
Agreement and that at the date of this ce ific
in default of the e .
default has existed since --
(date);
the following action with respe thereto:
notice, or both, would become an Event of
of this certificate.
the terms and provisions of the Development
te, the undersigned is aware that the Developer is
nt for the following reasons:
that the Developer is
that the
or proposes to take
A\GUA PLACE,LLCBa Allen, Manager
Thursday, April 27, 2017 Page 69
Exhibit N. Legal Description of Off-site Affordable Housing Units
Units 1-1:
of Submi
Book 470
County, Ii
Thursday, April 27, 2017 Page 70
Exhibit O. Memorandum of Agreement
WHEREAS, the City of Iowa City, Iowa (the "City") and Augusta Place, LLC (the
"Developer"), did on or about the _day of 2017, make, exe to and deliver
an Agreement for Priv e Development (the "Agreement"), wherein and where the Developer
agreed, in accordance wr the terms of the Agreement and the City-Univer ' y Urban Renewal
Plan, as amended (the "PI "), to develop certain real property located wit 'n the City and within
the City -University Urban newal Area, as amended and as more part' larly described as Lots
1-4 and the north 10' of the Iley adjacent thereto, Block 44, Origi al Town, Iowa City, Iowa
("Development Property"); an
WHEREAS, the term of 's Agreement shall co nce on the and,
with the exception of the Covenant egarding the Off-site ordable Housing Units in place for
20 years pursuant to Article II of th Agreement, shall rminate and be of no further force or
effect on and after June 1, 2029, or u on final payme of the Economic Development Grants,
whichever is sooner.
WHEREAS, the City, and the
Agreement referring to the Development
NOW, THEREFORE, IT IS
Oer desire to record a Memorandum of the
and their respective interests therein.
FOLLOWS:
1. That the recording of thisemor dum
shall serve as notice to the public that the gri
redevelopment and use of the Develop ent Propert ani
on such Development Property, and Cher subjects th
Assessment Agreement entered into nder the authorit
City and the Developer (and any ccessors or assigns)
assessment shall be made fixing a mini murn actual va
improvements located thereof f calculation of real prc
after taking into consideration y factors such as "roll
value of the property; and at certain condominium
Property be dedicated to particular uses.
of Agreement for Private Development
=cnt contains provisions restricting
I the improvements located and operated
e Development Property to a Minimum
of Iowa Code Chapter 403, in which the
agree that, as of January 1, 2020, a full
1 e of the Development Property and all
p y taxes at not less than $14,384,905
-ba4s" which would reduce the taxable
unA located within the Development
2. That the Agfeement imposes certain affordable h sing requirements as set forth
therein, for a period of 2 years beginning on onhe property legally -described
as follows:
Units 1-12, to usive, 104 West Side Condominiums according\o the Declaration
of Submissigh to Horizontal Property Regime recorded Dece er 22, 2010 in
Book 4701/,Pages 313-364, inclusive, in the records of the Reco er of Johnson
County, Iowa.
3. That all of the provisions of the Agreement and any subsequent amendments
thereto, if any, even though not set forth herein, are by the filing of this Memorandum of
Thursday, April 27, 2017 Page 71
Agreement for Private Development made a part hereof by reference, and that anyone making
any claim against any of said Property in any manner whatsoever shall be fully advised as to all
of the terns and conditions of the Agreement, and any amendments thereto, as if -the same were
fully set forth herein. �'
4. %ta copy of the Agreement and any subsequent amen is thereto if any,
shall be maintaifile for public inspection during ordinary busine ours in the office of
the City Clerk, Call, 410 E. Washington Street, Iowa City, Iowa.
IN WITNESS EREOF, the City and the Developer 4 executed this Memorandum
of Agreement for Private edevelopment as of the day o 2017.
(SEAL)
CITY OF O A CITY, IOWA
By:
Mayor
ST:
y:
, City Clerk
UGUSTA PLACE, LLC
B:
Jesse Allen, Manager
STATE OF IOWA )
COUNTY OF JOHNSO )
On this day, of 2017, before me a Notary Public in
and for said Coun personally appeared and , to me personally
known, who bein duly sworn, did say that they are the ayor and City Clerk, respectively of
the City of Iowa ity, Iowa, a Municipal Corporation, crea and existing under the laws of the
State of Iowa, d that the seal affixed to the foregoing ins ent is the seal of said Municipal
Corporation, d that said instrument was signed and seal on behalf of said Municipal
Corporation y a ority and resolution of its City Council said Mayor and City Clerk
acknowledg sa instrument to be the free act and deed of sai unicipal Corporation by it
voluntarily xe ted.
Notary Public in and for the Sav of Iowa
STATE OF IOWA )
)SS
COUNTY OF JOHNSON )
Thursday, April 27, 2017 Page 72
This instrument was acknowledged before me on this day of 2017, by
, as member of Augusta Place, LLC
Thursday, April 27, 2017 Page 73
Prepared by: Julie Voparil, 410 E. Washington St., Iowa City, IA 52240-319-356-5040
RESOLUTION NO. 17-158
RESOLUTION ADOPTING AN ASSESSMENT SCHEDULE OF UNPAID MOWING,
CLEAN-UP OF PROPERTY, SNOW REMOVAL, SIDEWALK REPAIR, AND STOP
BOX REPAIR CHARGES AND DIRECTING THE CLERK TO CERTIFY THE SAME TO
THE JOHNSON COUNTY TREASURER FOR COLLECTION IN THE SAME MANNER
AS PROPERTY TAXES.
WHEREAS, the City Clerk has filed with the City Clerk an assessment schedule providing the
amount to be assessed against certain lots for the actual unpaid abatement costs of mowing,
cleaning up property, removing snow, repairing sidewalks, and repairing stop boxes in the same
manner as property taxes,
WHEREAS, said schedule is attached as Exhibit A to this resolution and incorporated herein by
this reference,
WHEREAS, Iowa Code § 364.13B authorizes the City Council to assess against the property
said abatement costs in the same manner as property taxes; and
WHEREAS, the City Council finds that the property owners listed in Exhibit A have received a
written notice of the date and time of the public hearing on the adoption of said assessment
schedule, in substantially the same form attached hereto as Exhibit B.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA:
Exhibit A is adopted as the final assessment schedule pursuant to Iowa Code § 384.60(1).
The amounts listed in Exhibit A for unpaid mowing charges, clean-up property charges, snow
removal charges, sidewalk repair charges and stop box repair charges are confirmed and levied
against the properties listed in Exhibit A.
All unpaid assessments not paid within thirty (30) days after the first publication of the final
assessment schedule shall bear interest at the rate of 9% per annum, commencing on June 16,
2017.
Assessments are payable at Johnson Country Treasurer, 13 South Dubuque Street, Iowa City,
Iowa. Until June 15, 2017 payment may be made at the City Clerk, 410 E. Washington Street,
Iowa City, Iowa.
The City Clerk is hereby directed to certify the schedule as set out in Exhibit A to the Treasurer
of Johnson County, Iowa for collection in the same manner as property taxes. The assessment
cannot be paid in installments.
The City Clerk is further directed to publish notice of the schedule once each week for two
consecutive weeks in the manner provided in Iowa Code § 362.3, the first publication of which
shall be not more than fifteen (15) days from the date of filing of the final assessment schedule.
Passed and approved this 2nd day of
2017.
Z;e_�'
V14yor IF
\ 1 Approved by
ATTEST:
� a
city City Attorney/s Office
It was moved by Mims and seconded by Botchway the Resolution be
adopted, and upon roll call there was:
AYES:
NAYS: ABSENT:
x
Botchway
x
Cole
x Dickens
x
Mims
x
Taylor
x
Thomas
x
Throgmorton
$ uel0rd&Resta bateRes. doc
r.
April 25, 2017
Name
Address
City, State, ZIP
Dear Property Owner:
EXHIBIT B
1
N
CITY OF IOWA CITY
410 Cant Washinglon Sticel
Iowa City, Iowa 522401826
(319) 356-9000
(319) 356-5009 FAX
www_icgoo.org
This is to notify you that the City Council will be considering a resolution on May 2, 2017
that will assess against your property the cost that the City has incurred to do one of the
following: unpaid mowing, clean-up of property, snow removal, sidewalk repair, or stop
box repair charges. Enclosed for your information is a copy of the bill. If the City
Council approves the assessment against your property, the amount will be collected by
the Johnson County Treasurer in the same manner as a property tax.
If you pay the amount due in full before the City Council meeting, the resolution will not
include an assessment against your property. You can make the payment by mailing
or coming in person to the City Clerks office, 410 East Washington Street,
between the hours of 8:00 a.m. and 5:00 p.m. If property is assessed and the
amount is not paid within the specified 30 days, interest will accrue at a rate set by the
City Council.
If you have any questions about the resolution, please contact my office at 356-5043.
Sincerely,
Julie Voparil
Deputy City Clerk
Enc.
Copy to: Accounting Division-w/enc.
!i.
r 1 CITY OF IOWA CIT
-r&I COUNCIL ACTION REPOR 23
May 2, 2017
RESOLUTION ADOPTING AN ASSESSMENT SCHEDULE OF UNPAID MOWING, CLEAN-UP
OF PROPERTY, SNOW REMOVAL, SIDEWALK REPAIR, AND STOP BOX REPAIR
CHARGES AND DIRECTING THE CLERK TO CERTIFY THE SAME TO THE JOHNSON
COUNTY TREASURER FOR COLLECTION IN THE SAME MANNER AS PROPERTY TAXES.
Prepared By:
Kellie Fruehling
Reviewed By:
Julie Voparil, Deputy City Clerk
Fiscal Impact:
No impact
Recommendations:
Staff. Approval
Commission: N/A
Attachments:
Resolution w/ Exhibits A and B
Executive Summary:
This resolution is to adopt an assessment schedule for unpaid mowing, property clean-up, snow
removal, sidewalk repair, and stop box repair.
Background / Analysis:
The City has the authority under Iowa Code §364.138 to assess the nuisance abatement costs
in the same manner as a property tax. This resolution allows the City Clerk to certify to the
Johnson County Treasurer the abatement cost to be assessed against the property. This
assessment is being pursued only after the City took many steps to resolve the matter. The City
notified the homeowners to abate the nuisance (for example, to remove snow from the
sidewalk) and after the homeowner did not take action to abate the nuisance, the City abated
the nuisance and billed the owner. After being billed at least twice, these owners still have not
paid the abatement costs. The City has sent a letter to the homeowner giving them notice that
this resolution would be on the agenda, a copy of which is attached to the resolution. No
interest will be charged if the owner pays within 30 days of the first required publication.
Attached as an exhibit to the resolution is a list of the properties that will be assessed and the
amount that will be assessed.