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1976-06-22 Info Packet
*ity of Iowa City MEMORANDUM DATE: June 18, 1976 TO: City Council FROM: City Manager RE: Urban Renewal Enclosed are additional urban renewal materials: I. Land Disposal Procedures 2. Land Marketing Decisions 3. Review of Economic Feasibility < To provide direction in the discussion at the informal session on Monday, it is suggested that the Council initially concentrate on two basic questions: J. What should be the future character and/or makeup of the central business district? 10`12- 3- 0`12 Z. What is the nature and combination of public and private investment that will accomplish the goals agreed upon in question one above. As Councilmembers may have unanswered quo;tions, both current and background, the staff is available to assist you as desired. Please feel free to contact me if such an informal meeting would be useful for you. The staff participating in such a discussion will include John Hayek, Dennis Kraft, Paul Glaves, Pat Strabala and the Manager. 0 0 SfAFF MXLYS1S LAND D I SPOSAL PI!OCI:DUIU?S The following are initial findings• regarding the procedures which we IIIn- follow in marketing the land now owned by the City as LPA, which was to have been conveyed to Old Capitol Associates. Except where otherwise noted, the procedures refer to disposal by the City as LPA, and not to the City acting to sell land it has purchased from the LPA. 1. The following will have to occur regardless of the sales strategy selected. a) Current fair re -use values mist be obtained for all parcels which were to have been conveyed to Old Capitol. This is required when any appraisal on which the fair re -use value is based will be more than is months old at the date the disposal agreement is to be executed. (Ri:F: Urban Renewsil. Handbook, 7214.1 REV, para. 34a) b) 17ie new determination of fair re -use value must be preceded by the securing of new appraisal evidence (either having old appraisals brought up to date or new appraisals done.) (REF: 7214.1 REV, para. 34b) If any of the land is to be developed under HUD housing programs, advance HUD approval of the appraisers who will appraise that land is required. (REF: 7214.1 REV, para. 16b) Such appraisals must be reviewed and the new fair re -use value established using the same procedures as would apply in the initial establishment of re -use value. The determination of fair re -use value must then be submitted to HUD for their review. (RIT: 7214.1 MY, para. 33c) c) The fair re -use value, and therefore the appraisals on which it is based, is required to reflect all advantages created by the project and all requirements and limitations imposed. (REF: 7214.1 REV, para. 22) Accordingly, before reappraisals can be carried out, the plan must be finalized and the method of sale; i.e. single developer, grouped parcels, or parcel by parcel; has to be determined and provided to tht appraiser. d) The land marketing documents (bid packets) must be prepared, subjected to legal review, and sent to HUD for their review and approval. These packets will contain the "price" or "Minimum price" information based on the fair re -use value (if applicable to the sales method selected). (REF: 7214.1 REV, para 67d) Accordingly, the new fair re -use value must be determined prior to the issuance of the offering packet. e) Sufficient time must be allowed for all potential developers to prepare the proposals as called for in the bidding packet. The prior offering for proposals try a single developer allowed 90 days from availability of the packets to the bidding/proposal date. Old Capitol has what can be presumed to be an established, well developed proposal. If the time period allowed for proposal development is shortened the City may be open to the charge that the offering was stacked in favor of Old Capitol, and to the detriment of other potential bidders. Q Sufficient time must be available for the City to review all proposals. -2- ® 0 In the prior offering, 60 days was specified as the minimum time for offers to remain open. Accordingly, a minimum of 60 days must be allowed for such review. However, the 60 day period may not be adequate to review and/or compare multiple proposals given current staff levels. Unless additional staff is employed or a consultant retained, an extension of the review period beyond 60 days appears prudent. g) HUD approval of the developer must lie obtained prior to the execution of disposal contracts. (IU-: 7214.1 REV, para. 69a) Ibis can probably occur at the same time that proposal review by the City is being accomplished. h) Public notice of intent to dispose of land must be given. HUD requires only a ten day notice (REP: 7214.1 IZEV, para. 71a) but 30 days is required by Iowa law. i.) Following the accomp.lislacrit or the above procedures, the City, acting as LPA can execute the contract for sale of land to a private developer. Legal reviews of rhe step by step process should occur. j) The timing of the conveyance of land and the receipt of monies remains a question. In theory, such could occur soon after the execution of the contract. As a practical matter this may not be possible. Whether this should be required as a term in the offering is open to question, and mist be resolved. 2. Based on the above, the estimated minimum time required to begin receiving -3- 11 • Payment for land is in excess beof eleven months. This period would not gin until. the City is in a position noted t° begin obtaining appraisals. in item (lc) above, this wrn,ld be As to the p , after the Council's decision as lan to be included in the bidding packet, and the disposal Method to be used. The time estimate follows: I R= Itl: Appraisals NINlbillnf TAM..ftp UIRpD Appraisal Review Declaration of fair re-usc• value HUD concurrance Completion of bidding120 days Legal review of dO�' HUD review of biddng ctlMe documents bidding documents Time from release o 30 days opening documents to bid f ting ng City review of90 clays Proposals ll,blic notice Of -60 days of land ntent to dispose runebetween contract 30 days and conveyance dttr 3�� � G1'/1L TIDll: 360 days Therefore, a period of 1 year fr om date of Council determination of the plan and form of sato is a realistic time period before receipt o money from sale of land. P f 3. The estimate in item (2) above will apply only to the prior offering of land, with the conditions the re -issuance of Of sale unchanged The -4- 0 following factors must be considered in any program changes: a) IND requires a land use marketability study (LUMS) when doubt exists as to the absorption and redevelopment potential of the land over a reasonable period of time (REF: 7214.1 REV, para. 11, 10, and Appendix 1) h) IUD also stipulates that the Urban Renewal Plan shall not allow the new construction of a hotel or other transient housing unless the need for such housing has been earlier established. (REF: 7214.1 RFAI, para. 12) c) 17he latest complete LUMS was prepared by MID -AMERICA Appraisal and Research Corporation in 1965, and revised by them in 1.966. Some additional data is provided within the Link Programs materials included in the 1973 Old Capitol proposal. A limited review of feasibility was carried out by planning students at the University in 1975. d) In reference to items (3 a and b) above, there is a question as to whether or not the available transient housing data is sufficient. Certainly, as a minimum, we need a staff review of: available data, prior to Council decisions pertaining to the Urban Renewal Plan. Based on this initial review, we will need a decision that data is sufficient; that the staff should update the data; or, that a consultant should be retained to do so. The 1965 contract with MID -AMERICA allowed 90 days for the study. Allowing time to secure the consultant, a 120 day period is likely -5- ® 0 to be required from the time r decir;ion to secure a new Ings is made until the results can he used. As a reasonahle estimate, a staff update certainly would take a similar period of time and probably longer. e) The 1965-66 LUDIS estimates that land absorption would take three to four years. This is based on the premise that parcels would be marketed individually. In the absence of reliable new data, no basis exists for assuming any other time period. 4. Other Comments and Findings a) An increased work load has been generated, which may call for revisions in the project budget. Based on decisions made, we must develop a "Land Disposal Schedule." (REF: 7214.1 REV, para. 37) Regardless of marketing method selected, signs will have to be posted on all parcels which are for sale. (REF: 7214.1 REV, para. 38a) A new marketing program must be established. h) We have a 1970 memo from Mr. Hayek regarding methods of land disposal allowable under Iowa law. The City Attorney has been requested to review and update this mono as necessary. Additional reviews of documents will from time to time be required as noted in items (1 and 2) above. The precise amount of time required by these legal reviews is unknown at this time. However, it appears that the number of offerings or the number of proposals received will have a direct bearing on the legal work load generated. M 0 0 C) 7liere are differences between the offering documents sent out in July, 1973; the Old Capitol proposal as submitted in October, 1973; and the amended agreement as formerly entered into. We will need to check the plats and abstracts to insure that we have (or will have) them in the form needed at the time of conveyance. At issue, for example, is the matter of marketing Block 64. Parcel 64-1 originally was a rectangle, and was changed to a triangle to conform to Old Capitol's proposal. Whether this parcel should remain a triangle may be in question. In so far as the shape is irregular, and trniloref to Old Capitol's prior proposal, it mist be questioned whether the City can safely designate the parcel for disposition in the present configuration. In the same regard, the current plats and abstracts show the parcel as it was to be conveyed to Old Capitol. If the original rectangular parcel is adopted, changes in the plats and abstracts will be required. S. Other options It is estimated that the minimum time to begin a cash return is 1 year if the City rebids the offering ori substantially the same terms as existed in the contract with Old Capitol. At the other extreme is a situation where a full new LUMS is prepared, the Urban Renewal Plan is substantially modified and the parcels are offered in a different manner. Re -designation of disposal parcels would require new plats, new legal -7- C� • descriptions and abstracts, and possibly new vacations or the rescinding Old vacations. a) 'Ihe option exists for combining existing designated parcels into groups, and then offering each group as a package to be developed by a single developer. Were this to be done, the basic minimum times noted in items (1 and 2) above would be increased. The work load in securing FM) reviews, legal reviews, packet preparation, and proposal reviews by staff, the Project Area Committee and the Design Review Committee probably would increase significantly. b) T7)e option also exists for marketing; specific parcels individually (either all parcels individually, or some individually and some grouped). Such a procedure would require an updated LUPIS. In the absence of complete recent data, the city is not in a position to properly designate uses, or coordinate the review of numerous separate proposals. c) Regarding the sale of parcels to the prior owners the following extract from the Urban Renewal Handbook should be noted: "INELIGIBLE UEVELOPE16 the foJlowinl; persons are ineligible to be a redeveloper or to have any financial interest in a redeveloper..." 10 ® 0 "A private individual or firm from whom the same property (same property is defined as property that comprised 50 percent or more of the re -use parcel and in which the prospective developer held more than 20 percent of the ownership at the time of its acquisition by the Agency) was acquired, unless the redeveloper is:" "The successful bidder in a fixed-price competition, sealed -bid offering, or public auction." d) This specific provision would not apply to land sold by the city, not acting as the LPA. The real property disposal restrictions contained in Iowa law and the FKAA regulations would apply. This would still require an open competetive process. 6. Land Purchase with ,ICDA Funds a) The decision has been made to purchase some Urban Renewal land with (ICDA funds. The legal authority to do this clearly exists (REF: CFR Title 24, Part 570, Section 570.801cl). The price of such acquisition shall be at the "fair use value of the property provided under section 110c(4) of Title I of the Housing Act of 1949 as amended. b) Covenants must be attached at time of purchase which 1) Insure use in accordance with the Urban Renewal Plan 2) Insure improvements required by the plan will be begun within a reasonable time =1 • 3) Insure future reconveyance will be subject to LPA public disclosure requirements 4) Prohibit discrimination (RFF: CFR Title 24, Part 570, Sections S70.801c 1) c) In subsequent resale by the City, the fair use value provisions or Section 110c(4) of Title 1 of the Housing Act of 1949 as amended do not apply. (REF: CFR Title 24, Part 570, Section 570.80lc2) d) Neither the Urban Renewal Handbook nor the 1ICDA regulations precisely spell out the mechanism and procedures for such purchase by the City from the LPA. This must be worked out with HUD and the City Attorney to insure that the purchase procedures used are acceptable. -10- n n I) We to the results of recent litigation, the City Council of Iotry City, acting ns ITA, is again faced with major land marketing decisions. The nature and scope of the redevelopment which will occur will be governed primarily by four specific documents. These are: a) 'Ibe Urban RenewnI Plan b) The Land Marketing Documents c) The Redevelopment Proposals d) The Contract for Sale of Land The redevelopment proposals will be submitted to conform to the provisions of the Urban Renewal Plan and Land Marketing Documents. The Contract. for Sale of Land is prescribed suhstantially by IND, and any substantive modification requires IND approval. ' 'therefore, it is the Plan and Marketing Documents which provide the primary means for the City Council to shape the downtown redevelopment. The final decisions will of course- be made when proposals are reviewed and contracts signed. At the same time, it must be realized that it is the offering documents which dictate the nature of proposals received. An initial staff analysis of the Urban Renewal Plan has been distributed to the City Council. A staff: analysis of land disposal procedure requirements has been prepared for distribution. This staff analysis is directed at the issue; involved in land marketing decisions which must be forthcoming from tha City Council. 2) The City Council and staff n+:ed to explicitly address four specific questions relating to land marketcng. These four issues are: a) Mich land will the City buy with CDBG funds? b) Ilow many redevelopers will the LPA seek to contract with? c) Which method of sale, i.,�. fixed price or minimum price, will be used? d) What will the roles of the City Council, the City staff, consultants, and the red,rvelopers be in marketing land and/or attracting potential occupants? 0 -2- 0 This staff analysis evaluates options available to the City Council regarding each of these decisions. y) l=and l"urchase with CUBC Funds: '1110 City will have available ,$824,400 with which to purchase land from the LPA. As stated in the amended HCDA application submitted to IIUD, it is the City's intention to use these funds for land purchase as soon as possible. The currently established fair re -use value of all land not yet sold (excluding the parcels soon to be conveyed to the University) is $2,102,387. Whether or not new appraisal evidence, and new re -use values must be obtained prior to sale to the (:ity is not yet clear. Such updates will be required prior to re -offering land for private development. HUD has given a preliminary indiction that new re -use values will not be required before the City buys land with the HCDA money. Even if not required the Council must decide whether or not it wishes new re -use values established, prior to purchase with HCDA funds. Assuming that the existing values are used, or that new values would not be greatly different in the aggregate, several options are available. OPTION 1 The City could purchase all unsold Urban Renewal land except parcels 83-1 and 84-1 (the superblock); parcel 64-1 (the OCA hotel site) and parcel 65-4 (the quarter blocs: behind Penny's). This would require, at current prices, $793,221, slightly less than the $824,400 available. -3- • inrrrnv 2 The City could purchase all parcels south of PAirlington, plus parcel 64 1 ((X:A hotel site), parcel 82-1a (College block building) and parcel 81-1 (next to 'fillings). This would require $804,560 at the existing rc-use value. Depending upon whether or not: the current values are used, a variety of other combinations may be possible. 'fhe above two options do however, represent basic strategies. Option one retains the larger, Central Business Core parcels with the LPA, and sells the rest to the City. This would be the most viable soley from the standpoint of Urban Renewal marketing. Option 2 retains the superblock, and some miscellaneous parcels but sells to the City the proposed hotel site. ')Tie established values of blocks 83 and 84 are $412,720 and $563,200 respectively. 7Tie price for both parcels would be $975,920 which exceeds the available $824,400. ITie purchase of either block without the other at this time, would place this prime land into two distinct ownerships, the City and the LPA. Regardless of eventual marketing strategy, the splitting of these parcels into separate ownerships at this time would be unwise. There is special merit in purchasing two specific parcels, 101-2 and 103-3. The east half of Block 101 is City (not LPA) owned. Prior plans called for the use of this Land by two local financial institutions. The site plans for these developments included using a small portion of LPA disposition parcel. 101-2. By consolidating all of 0 0 -3- Block 101 into City ownership the rapid marketing of this land can proceed. '!he offer 1'or sale by the City must still be competitive, but the offering would be for useable parcels, for which there are known potential bidders. Plans were at one time mule Ior subsidized housing located on Parcel 103-3. The current price of $4.50 per square foot greatly exceeds that which could be paid for a subsidized housing site under HUD financial limitations. A maximum land price of $1.50 to $1.75 per square foot appears to be required in order for subsidized housing to be placed in the downtown area. 171e City is clearly faced with public demands for the inclusion of subsidized housing downtown. ','he land cannot be sold by Urban Renewal at a price which would make such Housing feasible. However, the fair re -use valuations required for LPA sale do not apply to subsequent sale by the City (REF: CTR 570.801(c)(2). This would involve a loss on the subsequent resale of land of :approximately $75,000. Whether or not this would be acceptable is a policy decision. It would however make the location of subsidized housing: downtown a possibility. 4) Number of Developers to be used: Once the decision has been made regarding which land the City will buy from the LPA, the marketing method of the balance of the Urban Renewal land must be determined. Concurrently, the City will be pro- ceeding to sell the City owned land purchased from Urban Renewal.. hhether the award of a contract for Urban Renewal owned land can be made contingent upon the successful bidding on the City owned land too, 0 0 is an unresolved legal question at this time. It would appear on its face, that such a provision might make one or the other of the offerings non-competitive, if the "best" proposal for one offering is by a developer who does not submit the "best" proposal for the other. Tlie possibility exists for a "joint" offering by the City of Iowa City and the LPA in which land owned by both is sold as a package. This would be a package of land wi.th two sellers, to be solei by a single contract. Based on the premise that su:h a joint offering is possible (the legality has not yet been fully researched) the Council will have the options of selling land to one, or more than one, developer. a) SINGLE I)EVELOPIiR: All of the land could b., sold as a package to a "single developer." Such an offerin,; has certain advantages, but certain disadvantages as well. The following listing i•; based on the premise that a sound, protective, contract is executed between the LPA and the developer. To the extent that protections are emitted from the contract, the advantages may not apply. 1) ADVANTAGES 1. Insures that all parcels are sold -- City is not left with non -marketable tracts. 2. Provides for coordination of the development of the entire area within the pr000sal, rather than by the City when it reviews several separate proposals. • -5- 9 3. Does not require thr City to pre -specify the location of parking -- allows the developer to integrate parking location into the proposal. 4. Would require the d(-voloper to design and specify the area wide amenities. The City would review such amenities during proposal review, but would not need to pre -specify then in the land sates offering. 5. The City can require the developer to justify the proposal with market data, confirming the marketability of the land by the developer. 6. Places the responsibility for attracting and securing occupants of retail and other space with the developer. 7. Simplifies the proposal review process, because the integration of devcl.opments has been done by the developer in preparing the proposal. Decreases the number of separate proposals which must be reviewecl. 8. The coordination of the construction of public and private improvements is simplified. The timing of the provision of public improvements must mesh with a single, not multiple, private construction schedule. 9. The review of financial feasibility, equity capitalization, and mortgage financing is simplified. 10. The City Council is relieved of the responsibility of selecting specific occupants for specific locations 11. 12. -6- UIS�ll)� ls: 1• Would probably require a "take-down" schedule ;%fiich would delay the deve]opment of some parcels. 2. Weakens the ability of the City to reasonably review and approve the plans and specifications submitted by the developer as called for in Section 301 of the contract for sale of land. (HUD form 620913) '1110 longer time period Prior to construction and larger scale of the developers activi.ty, weakens the assurance that action will occur as proposed and approved. 3. Hakes it more diffi,:ult to reasonably assure the adequacy of the evidence of Hquity Capita] and mortgage financing as called for in Set--tion 303 of the contract for sale of land. MUD form 620913) 7710 expanded time period and scale of developer's activity increases the risk that financial conditions could change. 4. Because of items (2) and (3) the risks of a default by the developer, or the need to amend the contract prior to conveyance, is increased. els set forth in Sections 304, 702, and 703 of the contract for sale of land, conditions may arise which could cause the contract to be voided for specific parcels; the risk of this occurring would be increased. S. Because of items O, (3) and (4) above, the City would be placed in an unsure bargaining position after the initial contract has been signed, but prior to t11e completion of conveyance according to the take-down schedule. LI -7- • 6. Places in the hands of the developer, not the City, the determination of whit specific occupants will locate in specific locations. 7. IM b) Dhiltiple Developers: l) T7ie LPA, and the Ciry, have the option of: marketing the land to several different developers, (or at least through several different offerings). Multiple offerings does not necessarily mean multiple developers, however. T7iere is a Possibility that a specific developer could make the best: proposal on all or nearly all land. While the term "sim;le developer" has a reasonably precise meaning, the term 'mmltiple developers" can imply numerous marketing strategies. As a minimum, it means parcels grouped into two offerings. At the extreme it means breaking up the existing disposition parcels into an increased number of smaller parcels. In between these two extremes, a variety of possibilities for grouping parcels exists. How the parcels could be grouped depends to a large extent on the decisions made regarding which land the city buys, as discussed in part (3) above. -s- As just indicated, tale range of possible strategies is broad. As a practical matter however, the range of reasonable strategies is considerably more limited. The advisability of further dividing existing disposition parcels has to be severely questioned. Such division will require the preparation of new plats and legal. descriptions, prior to obtaining new appraisals. Such division will also require the obtaining of: new or revised abstracts. It would require that the disposition plan be amended, and Hull approval obtained. Such duplication of prior work will greatly increase the cost, the staff., and the time required for land marketing. In addition to thes,- factors, such a division of large parcels into small parcels would be contrary to one of the basic purposes of Urban Renewal set forth in the Housing Act of 1949 -- land assembly into more useable, marketable, parcels. The existing disposition parcels were designed by reasonable people on the basis of Sound marketing data. On the other hand, the marketability, and use designations for numerous smaller parcels has never been verified by a land marketability study (UJMS). We have some recent marketability data from the Department of Urban and Regional planning at the University which deals with marketability by use, but not by location. prior to marketing such altered parcels, a new LUMS would certainly be required. The requirements for increased staff supervision, coordination, • -s- 0 and planning, of the redf!velopment would add considerable time and cost to the marketing process. Document preparation, legal reviews, and HUD approvals would all delay the marketing process. Any substantial departure from the existing dis- position plan will require a detailed environmental review, and would likely require a new Environmental Impact Statement. In view of these considerations, the breaking up of existing designated disposition parcels is not a viable option. 2) Within the framework of the existing parcels, and depending on the land ownership arrangement discussed in part (3) above, a considerable range of marketing alternatives exists. The three major alternatives are: a) Sell all parcels individually. b) Sell all parcels grouped into three or four offerings. c) Sell key parcels grouped, and other parcels individually. Each possible alternative has certain advantages and disadvantages. For the purposes of analysis, it is useful to examine the two opposite alternatives, (a) and (b) above. Alternative (c) is a middle position which avoids some of the disadvantages of either other option. Below is a listing of advantages and disadvantages of each alterna .ve. 0 • -10- a) All Parcels individually_: ADVANTAGES: 1. Maximum opportunity for local, and other merchants to acquire land. Z. Maximum choice by the City Council in making re -development design decisions. 3. Quick development after contracts are signed. 4. S. D I SAWANI'AGES : I. The greatest time and expense in preparing documents, obtaining HUD and legal reviews, evaluating proposals, and coordinating development. Z. Maximum solicitation of individual bidders required. 3. A new LUMS, or extensive staff update would be required. 4. Maximum amount of detailed pre -planning of land use and amenity location will be required. 5. Parking locations must be pre -designated. G. 7. b) All parcels in i or q groups: ADVAM'ACM,: 1. Minimum need to pre plan and coordinate development. 2. Minimus number of dllcuments, reviews, and proposal evaluations requirol. 3. Developers would do major occupant searches. 4. Parking location can be generally prescribed, without the requirement to precisely specify location. S. Developers can be r-quired to provide amenities which serve an area, rath..,r than only one parcel. 6. The least time required to prepare offering documents and to review proposals. 7. M DISADVANTAGES: 1. Minimum opportunity for small merchants to bid on property. 2. Less decision discretion remaining with the City Council. 3. The possible need for a take-down schedule. 4. Some possible delay in completing all construction proposed. S. a C) Some parcels grou120d; others sold individually: '[his intermediate policy offers many of the advantages of both of the other options, while allowing safeguards against many of the disadvantages. Major tracts can be grouped, and a high degree of integration can be provided by the developers. At the same time, smaller tracts can be developed by individuals desiring a :;ingle use tract. Area wide amenities can be planned with one developer. The coordination of public and private construction is facilitated for the major grouped areas. If grouping of some or all parcels is selected by the Council, certain logical groupings appear advisabl,:. Parcels 93-1, and 101-1, along with the vacated portion of Capitol StU'eet, comprise a logical grouping for an area development. Parcels 83-1 and 84-1 compri;e a choice area for an integrated retail development, planned and constructed as a unitary development. Parcels 64-1 and 65-4 are cJosely related in location and have Potential for integrated development. The same applies to parcels 102-3, 102-4 and 103-3. This is not to imply that all groupings listed should be used. It is rather to provide examples of the types of grouping which could be advantageous to the City. -13- • 5) Method of Sale: Iowa law requires that the disposition of land must be only through a competitive process. 'h%ro main methods are available; fixed price competition, and minimum ice ca,ipeti_tion. �— a) Fixed Price 'Ibis method requires that the price be fixed, and not an element of canpetitior.. Dev•l.oper selection occurs through :ui evalu- ative process in which proposals are judged against specifie(i, non - price criteria. b) Minimum Price Phis method specifics minimlmll criteria which must be met and a nunimum Price; and awards ;hc selection to the highest bidder who meets the criteria set and whose bid exceeds the minivnum price. Either method can be made to work. Minimum price competition would serve to Maximize land sales revenues. On the other hand, land sales revenues is only one consideration, if fixed price competition is used, long run tax revenues can be a key selection criterion. It would be undesirable to be forced to select a modest development proposal because more was bid on the land alone, when some other proposal offered higher long run tax revenues. Both short run sales revenues and long run tax revenues should be considered. Depending upon the number of offerings made, as discussed in part 4 above, it is possible that both methods can be used to the City's advantage, if more than one oEferi.ng is made. 0 -14- P h) '171e roles which will he carried out by the City Council, the City staff, consultants, and the developer-,, is a matter which must be given serious consideration. We are in the process of marketing over $2,000,000 worth of land, on which many millions of dollars of improvements will be constructed. This is a major real estate development undertaking. Land in this quantity does not sell itself. investors capable of this level of development must be sought. Occupants for.commercial enter- prises must be solicited. Exploratory and tentative discussions must occur prior to any formal agreements. This is a complex process, which requires the application of many and varied talents. It is a process which will involve economic, legal, administrative, marketing, and policy decisions. Substantial time and money will be required. At the time prior offerings were made, the Urban Renewal staff was much larger. A Special Urban Renewal Counsel had been retained. Before a major land marketing program can be carried out, additional skills will be required. Some of the needed skills are available within the existing staff. Other talents must be sought through an expanded staff, or the retaining of various consultant's services. Developers can do many of th% tasks which would otherwise have to be carried out by staff. Under the "single developer" concept, or where only 2 or 3 major developers are used, much of the needed selling, and negotiation with purchasers and tenants will be done by the developers. This is not true if individual parcels are marketed by the City. - ls- Mich preliminary discussion and negotiation must occur, if quality develolanent is sought. The City is ill equipped to engage in this type of marketing procedure. Serious investors are always reluctant to engage in exploratory discussions when they can expect their intentions to be aired publically the next d:ry. This is not to imply that any cormnittment could or should be made without full public disclosure and review. But, preliminary discussions need to be carried out in a confidential manner. Public disclosure laws make this a difficult task for the City. If such discussion can be carried out primarily by a private party -- redeveloper or marketing consultant --the attracting of investors, and the quality of eventual development will be enhanced. The degree of discretion del,:gated to tite City Manager and Development Staff by the CounciL is important. The frequency and depth of required reports to the Council is likewiss! important. It will be difficult to balance the needs of the Council r.o be fully informed, and the needs for preliminary confidentiality on th,� part of potential investors. ']'his is a matter which must be addressed With caution by the staff and Council, if the marketing effort is to suo:eed. 'rhe City needs to seek to attract the highest quality development possible. Quality development, in a size and form suited to the Iowa City market will provide the maxirmun long run fiscal advantage to the City. The City has lost revenues in pre�:eeding years. It intends to recoup these losses through the taxation of the new, higher value properties in the Urban Renewal area. 'rho rite at which it recoups the losses, and provides relief for other taxpayers depends directly on the character, profitability, and value of the r., -development. -16- 0 In order not to short change its residents, Iowa City must seek the hest redevelorment possible. 'Phe City must be prepared to make the needed cormiittment. of resources to launch a major marketing effort. • 0 /d2 2A REVIEW OF ECONOMIC FEASIBILITY FOR URBAN RENEWAL IN IOWA CITY December 1975 Prepared by members of the class 102:206 Planning Methods Douglas Lee, Instructor Program in Urban and Regional Planning University of Iowa FOREWORD 0 As a final project in a one -semester planning analysis course, the students took on the task of assessing the economic feasibility Of completing Iowa City's urban renewal program. Primarily, this meant estimating the market potential for a number of activities which might be suitable for the urban renewal area, in the light of changing economic conditions and recent local market activity. example, the construction of shopping centers outside the downtown area is thought b For space in the central business district. di seriously cut into the strict, market for retail Previous market assessments of the urban renewal project were consulted, but for the most part the students found that the construct their own methodologies and data sources from scratch. most cases, Y had to in any detail and much ous rof�h� did not describe their analytic In and direct detail data were out of date. Procedures Ys were used as well as secondaryPersonal interviews employment, and business activity. data on Population, The reports collected herein are first written drafts; work in was reviewed orally and criticisms offered on the written drafts, have been no revisions. Progress reduces Title and contents a but there pace, and pagination added to the lower right hand corners.been to Of considerable assistance in the conduct of the exercise was Kraft, Director of Community Development for Iowa Cit context for the urban renewal Dennis the students' efforts renewal ptroblem' and helped City - He Presented the P discuss and evaluate by his presence, but in no way project. The students were stimulated y inh[bited in their conclusions. Douglas B. Lee, Jr, Associate Professor . 0 • CONTENTS 1. Retail (Larry Appelson, Bill Keating, John Lichtenheld, Dave Lundquist, Carla Tunnel) . . . . . . . .. . . . . . . . . . 1 2. Hotel and Motel (Stephen Esbin, C. J. Kurtz). . . . . . . . . . 27' 3. Eating and Drinking (Raphael Ben -Ami, Stephen Schmidt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4. Office (Carol Abel, Mike Miller, Sue Sheets) . . . . . . . . . .51 5. Housing (Paul Glaves, Dick Smith, Ed Bolden) . . . . . . . . . 60 6. Institutional and Public (Leslie Gallay). . . . . . . . . . .. . 65 7. Traffic Circulation (Brent Coulter . . . . . . . . . . . . . . . . 72 RETAIL SPACE DEMAND Larry Appelson Bill Keating John Lichtenheld Dave Lundquist Carla Tunnell SUMMARY Projected Iowa City retail sales for 1980 range from a high of $ 134.56 million to a low of $ 116.93 million in 1967 constant dollars. This is an increase of from $ 12.25 million to $ 29.80 million over 1974 Iowa City retail sales. The total demand for retail space in Iowa City is expected to be between 1,040 and 899 thousand square feet by 1980, an increase of 258 to 117 thousand square feet above the present supply of retail space. As a means of comparison, 211 thousand square feet of retail floor area is slated for construction within the urban renewal area alone. Upon the completion of urban renewal, 606 thousand square feet of retail space is expected to be available in the Iowa City central business district. (C8D) I • INTRODUCTION City/University Project 1 was authorized by a 1964 ordinance of the Iowa City Council pursuant to Chapter 403 of the Iowa Code, which is the state enabling legislation for urban renewal. However, its origin can be traced back to the 11busing Act of 1949, the intent of which was to eliminate slums and blighted conditions. From its inception to the present day its stated objectiveshave been 1) To eliminate substandard buildings and blighting influences, 2) To strengthen central Iowa City as a business, cultural and financial center, 3) To strengthen the economic activity and job possibilities in the central Iowa City area, 4) To establish a pattern of land use groupings to enhance their functioning, and 5) To provide for ordered growth of the central area through controlled rehabilitation. Whether and to what extent these objectives will be realized remains an open question as Project I proceeds. Tile urban renewal project has had a stormy political history in Iowa City, marked by much litigation, debate and delay. The initial scope of the project was substantially larger than the final scale of the project (finally bordered by Linn, Washington, Court, and Madison. See Figure 1.) In addition, the history of the project has been marked by lack of continuity on the Iowa City Council and a gradual cooling of enthusiasm and support for the project.on the part of the University Of Iowa. (Initially the University administration gave strong support to the urban renewal concept and project.) The project was delayed in 1967 when a preliminary and later a Permanent injunction prevented proceedings. Perhaps the most sig- nificant legal action took place in 1972 when a citizens' group challenged the environmental impact statement developed on the project. The impact statement was finally upheld in federal court as in com- pliance with the dictates of the National Environmental Policy Act. Currently, there is litigation pending before the 8th Circuit Court of Appeals as to whether a parcel adjacent to Ralston Creek is an integral part of Nall Motors and therefore now must also be purchased from Nall's. (Nall Motors was in the part of the urban renewal district for which demolition has already been concluded.) ' 1 2 W 1! a I J Old Capitol Campus -_� f . r - c N ' Washington Street VJClollege Street Burlington Street � � 9 b F_/f, f / orr�-� IFJl I _j 1 flll4tl! ljilll � �... tlmnunu. �............. f Court Street V ti L � V L � j Y a n u [q T • Y Y b ° r-1 W u ° v H Y w Ix U U 3 p� H W C y rc toH 0 F 1! a I J Old Capitol Campus -_� f . r - c N ' Washington Street VJClollege Street Burlington Street � � 9 b F_/f, f / orr�-� IFJl I _j 1 flll4tl! ljilll � �... tlmnunu. �............. f Court Street V ti L � V L � j u d n u [q Y u 4 Y Y b ° H C W u G U U A CITY -UNIVERSITY URBAN RENEWAL PROJECT AREA 0 0 The net result of all the delay in implementing the project will be the increased cost of the project. This accounts for the scaled down scope of the project also. According to Dennis Kraft, Director of Community Developement for Iowa City, the costs of the project are 80 to 100 % greater now than they would have been had the project been impl&mented apace in 1964. Whether the objectives of the urban renewal project can be met remains to be seen. However, one thing is certain. That is, if the project can meet them at all it will be at a much'.higher price than was originally contemplated. While it is the case that substantial retail space has been removed from the central business district, it is not all together clear that additional retail space will be needed in the future. During the past decade substantial amounts of retail activity have relocated to the periphery of Iowa City. As in other urban areas, the development of the suburban shopping center has reduced the need for retail space in the downtown area. In addition, the population forecasts for the Iowa City area were consideralby higher than recent evidence would indicate. Therefore, projected retail demand based on the increased population will not be realized. Recent data have also incicated that real personal income has remained relatively stable. Hence, it would appear unlikely that future demand for retail goods will rise sharply. Counterbalancing these trends is the fact that the University is adjacent to the downtown area, and substantial demand for retail goods still remains from students and employees of the University. This fact, coupled with -the high density residential areas in and around the central business district, has contributed to a continuing demand for retail goods and services. The purpose of this report is to determine if in fact there exists a demand for retail space sufficient to justify construction of additional retail facilities in the urban renewal area. 7 4 " • • METHODOLOGY A methodology was developed to measure'the demand for retail business within the Iowa City urban renewal area. A model was developed which expressed retail demand in terms of both retail sales and retail space. It was assumed that retail demand was a function of population, effective buying income, and retail sales. All monetary units were deflated and expressed in terms of constant (1967) dollars. The model assimilated for use in the analysis consists of three distinct components (Figure 2). The first phase develops the demand for retail sales as a function of population and effective buying income. (EBI)2 The second phase converts retail demand into terms of retail floor area (RFA) and as a function of retail sales and the existing supply of retail space available. The final phase of the model develops an allocator for assign- ing the net retail floor area demand to nine specific retail business categories. The model projects retail demand through 1980 on the basis of previous trends from 1967 to 1974. The first level of analysis (Figure 3) required the definition of the trade and market areas. The trade area was assumed to be Johnson County in its entirety, and Iowa City proper was defined as the market area. Data for the study period (1967 through 1974) was collected for the total amount spent on retail goods in the market area, the total amount of disposable income available in the trade area, and the pop- ulation of the trade area. The two major assumptions made were: 1) all the trade area's retail spending was done in the market area, and 2) EBI was a measure of disposable income. Three indicators were developed, their prior trends graphed and deflated, and then projected through the year 1980. These three in- dicators were: 1) the per cent of the total EBI of the trade area ex- pended on the market's retail sales annually, 2) the trade area's EBI per capita, and 3) the trade area's population. Johnson County's 1980 EBI was derived by multiplying its projected EBI per capita and population for 1980. This figure was then checked and compared against a linear (deflated) projection of Johnson County's 1980 EBI. The final step`in the first phase was deriving Iowa City's retail sales for 1980 if 5 L�L1� SvQeRr�1 �}S • N eETqt �.- MeT 2E CPRIL Au cI uxTION j`( SraLC-S198o Rc7JQ AR � QETRIL aVs►ttESS H -DEmAND 1900 w Cess 1cwaCnY CQFq, LowAC1}-1 CATEC�OR� �ACRY Comb one��s o� -I•he, Qe+a� 1 �err.o.�tia Mode, weo ap�xi�elltss HF .9Ho t58J i e N lgeo Er WSJ l4evJ 148 hh 4?p1ah. 1�— I;ec�ice SQA.. T?EN l7 -ti•E ai 1'�O:TCT� EBZ c,\ei E�TEI� MTAIL, g{}�S IovaC,rT detl;iE 1� Eat'trrae �S_c �YA`rt{iED QDMAa ii ,ToHu>a. do\larS EBc X930 ccuun SC QS X990 TC _ y� EBIITC SC Soho." tour.iy �2110�2 �gi ,i90 eS19%0 ® - �1'"Iaiwv\r`F'e c1o\14rS 1-e'r �\w r C x �1 q 196J �7 z6w6,.Y, TOQul4�IQVN iC CGur,i-.( t- SC n w � 4 M � Cheer EBI YEQQ, • �iC �SYEH2 �' �ojec\e d re wee �ro�-ou, a� r LEVEL T' EIETtia\L SP,ES r, MI by multiplying Johnson County's 1980 EBI and the percent of 9ohnson County EBI spent on Iowa City retail sales. It was assumed that the per cent of EBI spent on retail sales was relatively constant over the study per- iod with only minor deviations. The derived retail sales was also checked against a straight line deflated projection of Iowa City's 1980 retail sales. The second level of the analysis (Figure .A) derived both the total demand for retail space in Iowa City by 1980 and the increase in demand for retail space based on the existing supply. An indicator was developed over the study period reflecting retail sales annually per square foot of floor area. This indicator incorporated the expansion and demolition of all retail space within the market area. The major retail areas considered were: Wardway Plaza, the Mall, K -Mart, the CBD, and the urban renewal area. In- dicator trends were deflated and projected through 1980. The indica- tor was then multiplied by the 1980 retail sales derived in level I to obtain the total retail floor area demanded in the market area by 1980. This total demand was subtracted from the existing supply to derive the net increase in reail space estimated to be required by 1980. The final phase of the analysis assigned the increase in retail floor area estimated in level II to specific categories of retail business by two methods of allocation (Figure 5). One allocator was developed on the basis of the percent of total retail sales spent in each on a of nine homogeneous retail categories over the study period. It should be noted that the categories and sales are based on the type of retail business not on the type of retail good. An allocation percentage was projected to 1980 for each of nine reail categories and then multiplied by the net retail space demand for 1980 obtained in level II to derive the floor area demand for each retail business category in 1980. The allocations were based on two major assumptions: 1) a supply and demand equilibrium existed within each of the retail categories (e.g. there are presently enough super- markets in the market area to meet demand), 2) retail sales per square foot is of constant value across and within each retail cat- egory (e.g. retail sales for a clothing store per square foot are the same as those for a drug store). 8 I! 1ZEND r- — — �ieawwal 5o\es c de��ie �W CbnS�PK i w cupq) LL 1 • YEH2 vEMwD T6e rWo12 {at2E t'� Too SECT vD ' Imo �TECTE D ,vao 5 1� TOTt1l.. ?-FA- A�,x rc rc .0 ISBu QS Ic Ato =A eFq„a� rc IgBU li3.l ►JET SFR =C = iQiRl RFQ rc Iq&D - E�4STINC, RFR=G L.EV EL 1f RETPAL FUCOI . ME -A ,1> �le�c,; I Sales �rea�t 1 Per i SC �e-14i 1 50.1eS YEAR +oke 1 SC Ave Floor grey i Az Qoec,,cfy C e Ave Floor (Zeas ail C0.�29o�yS -�QOZECTE O �, Ca�equr.�C� x Nei RFq w rc. rc �»davd Z2FF1 �qeu rc LEI E L =- �A �� SPHCE AuucaT� �i.1 BY C arc C,u��� �TAltr FCS � ►�12o�tECTEG< 0 COM,�1flL Asa � SQ1=F, c c= m • In light of the second assumption, a second method of allocation was developed which utilized average size floor area for each of seven retail categories (similiar homogeneous categories as the previous nine). The average floor area for each category was divided by the total of all average retail floor areas to obtain a percent of standard retail floor area -per category allocation. These standard space allocations were multiplied by the net retail floor area demand derived in level II to obtain a net standard retail floor area demand for each of seven retail business categories. The two measuresof the increase in retail demand by retail business category, derived according to two seperate means of allocation, were then compared. The demand for increased retail floor area, although encompassing the total market area, was assigned exclusively to the urban renewal area. Thus, a range of the maximum demand for retail space in the urban renewal area was derived from the model for each retail business category. An int rpretation of the results obtained from the model constituted the basis upon which recommendations were made. 10 Il 1 u RESULTS In order to gain an accurate perspective of current and projected conditions it is necessary to examine historical trends affecting retail demand. These trends include those for effective buying income (EBI), population, total retail sales and total floor area. Derived from these four categories are per capita E'BI, sales per square foot and percent of EBI spend on retail sales. Effective buying income for Johnson County was obtained for the years 1967-72 and 1974 and deflated to 1967 constant dollars. These data, presented .in Table 1, show a steady rise until 1971 at which time EBI levels off at about $235 million. Population was plotted from 1900 to 1970. Throughout this entire time period there was population growth at a fairly steady rate, with the exception of the 1960-1970 decade during which the increase was at a much more rapid rate (see Figure 6). Per capita EBI (Table 1 and Figure 7) remained fairly stable from 1967 to 1974 --within a range of $250 --with only a slight decline in 1972. Total retail sales for Iowa City are shown in Table I and graphed in Figure 11. Except for a rather dramatic drop in 1970, sales increased consistently from 1967 to 1974. These figures and the total EBI were used in computing the percent of income spend on retail goods and ser- vices (Table 1 and Figure 8). The trend here generally followed that of retail sales with a drop in 1970 and gradual recovery in 1971 to 1974. Retail floor area for Iowa City, Including the CBD and major out- lying retail centers, is shown in Table 2. These data take into account the additions of the Sycamore Mall, Wardway, and K -Mart as well as the decrease in CBD retail square footage due to Urban Renewal demolition beginning in 1972. Only half of the area demolished was subtracted from the total under the assumption that one-half of the displaced retailers would relocate elsewhere in the city. The ratio of sales to floor area is plotted in Figure 9 and the actual data shown in Table 1. Again there la a drop in 1970 due to the decline in retail sales. A further decrease in sales per square foot in 1971 reflects the addition of the first phase of.the Sycamore Mall 11 12 • T • pvrp 14-fla4 7oyoo Ciapp0 ipopa ya000 J 3 �ooc Zpoo< J / i/00 FIGURE 6 Pop ala*o17 .Jol+^ s an Co q.r t y AolP u /4 /9jv /910 /7jb /frO /1C° /77V 17ri' Yc a i FIGURE 7 p�, c4rf9 E�.z .Jd ti n son CGUA r, • 1 /1C7 CP c4 70 7/ 72 73 7Y 7s 7C 77 7F 77 ro Yegr lZ L FIGURE 8 ! O 6V4 C /T Y 2,ET.9/ L S4,1 FS/dt9HA1SoAV G!i!,IAI rK Yens fe h 4 t:� 0 • and the opening of K -Mart, an increment of about 200,000 square feet. The increase in 1972 to 1974 results from the removal of space by Urban Renewal demolition and the growth of total retail sales during that period. Effective Buying Income for 1980 in Johnson County was constructed from per capita EBI and population figures. A high and low per capita EBI was computed, and this range was maintained throughout the computa- tions. Using the low estimate of $3190, a high estimate of $3670, and the 1980 population projection of 78,000, total EBI for 1980 was found to vary from $248.8 million to $286.3 million. Straight-line projections of total EBI served as a check; these ranged from $247 million to $297 million (see Figure 10). Total retail sales were computed from porjected EBI and an estimate of a constant ratio of retail sales to EBI. 47% was used as the constant (see Figure 8), and total 1980 retail sales for Iowa City were computed as $134.56 million for a high and $116.93 million as the low value. Again, a check using linear projection, of total retail sales resulted in a figure of $123 million (see Figure 11), approximately at the mid- point of the high and low forecasts. Retail sales per square foot in 1980 were estimated to be $130 (Figure 9). Total demand of retail area in 1980 was then computed to 1.04 million square feet (high) and 899,000 square feet (low). By subtracting existing floor area of 781,905 square feet, the additional demand for retail space was found to be between 258,095 square feet and 117,095 square feet. These computations are summarized in Table 3. The projected demand for retail space was allocated by two different methods. The first method allocated retail apace among nine store types. The figures were based on the percent of total retail sales of each category. The second method involved seven store types. The allocations for this method were based on the average size in square footage of each store type adopted by the Urban Land Institute 3 The breakdown of projected demand for retail space for both methods is listed in Table 4 and Table 5. 15 M EM I" IYa FIGURE 9 jZe�il S4/�s� �2 Tol�4 i f /l1C7 h //n reA yc4/ 1 t M1///o'As 0 .4 -0 FIGURE 10 J044 sa^ COUAty ._ . , i% E'c4i �' 77ro4w,Jr FIGURE 11 Iowa City I'IgC7 V,ea.,- TAcasv^df 0 6 Based on interpretation of the analysis of demand for retail space by category of store type, the following recommendations are proposed: Tenant Food Store General Merchandise Apparel Store Department Store Furniture/Home Furnishings Hardware Drug Store TOTAL Leasable Area (Sq. Feet) 30,000 50,000 20,000 40,000 15,000 15,000 8,000 178,000 The 1972 Link Study proposed the following development: Tenant Food Store General Merchandise Apparel Store Department Store Furniture/Home Furnishings Hardware Drug Store TOTAL Leasable Area (Sq. Feet) 25,200 39,300 33,100 60,000 22,600 13,000 15,000 208,200 It should be pointed out that our projections were based on 1980 demand while the Link Study based its recommendations on 1976 demand. For 1980 the Link Study projected a demand for retail space of 324,700 square feet. This figure represents a projected demand that is nearly twice the demand forecasted in this study, liven though the results from this study may be considered "conservative," the projected demand based. on previous studies appear to be considerably inflated and should, there— fore, be viewed with some caution. 19 20 I • I • 1980297 3667.15 247 (2) 3193.27 (2) 123 47 (1) All dollar amounts in constant dollars, 1967=100. (2) High and low from linear projections used as checks. Source: Sales Management Survey of Buying Power, 1967, 1969, 1970, 1971, 1972, 1974. Retail Sales Square Feet (Dollars)(1) 111.20 NA 123.80 115.80 104.50 127.00 130.43 133.90 130 7 TABLE 1 Summary Table Total EDI Retail Sales Retail Sales Johnson County EBI Per Capita Iowa City EBI Year ($ Millions)(1) (Dollars)(1) ($ Millions)(1) (Percent) 1967 176.294 2953.00 79.577 45.14 1968 NA NA NA NA 1969 188.056 3064.17 88.580 47.10 1970 227.189 3141.57 82.898 39.49 1971 234.308 3207.50 95.762 40.87 1972 235.546 3153.82 99.294 42.15 1973 NA NA 101.984 NA 1974 236.363 3202.75 104.676 44.29 1980297 3667.15 247 (2) 3193.27 (2) 123 47 (1) All dollar amounts in constant dollars, 1967=100. (2) High and low from linear projections used as checks. Source: Sales Management Survey of Buying Power, 1967, 1969, 1970, 1971, 1972, 1974. Retail Sales Square Feet (Dollars)(1) 111.20 NA 123.80 115.80 104.50 127.00 130.43 133.90 130 7 r L TABLE 2 Retail Floor Area lova City (Square Feet) 1969 .Prior Sears1971 70,000 -- Wardway 92,000 Existing(69) 715,568 CBD K -Mart 553,568 99,000 TOTAL 715,568 Mall(lst Add. TOTAL 102,000 916,568 1972 C ting(71) 916,568 Ma11(2nd Add. Subtotal ) 54 700 971,268 Urban Renewal Demolition X378 -726 189 363 TOTAL 781,905 Source; General Growth Development p 1973 Cor " Sho piling Center •, Feasibility: and Co., "Microanalysis y' DeLeuw, Cather Hawkeye Report, March 1974. 21 22 TABLE 3 Computation of Net Demand for Retail AYea EBI Per Capita Total EBI Retail Sales Total Demand for Net Demand For 1980 1980 Iowa Cit 1980 Retail Area Retail Area Johnson County Johnson County 1980 1980 (Dollars)(1) ($ Million)(2) ($ Million)(3) (Millions sq. feet)(4XSquare Feet)(5) ® LOW 3190 248.8 116.93 1.040 258.095 HIGH 3670 286.3 134.56 .899 117.095 (1) EBI Per Capita from Table 1. (2) EBI Per Capita 1980 x Population 1980 • (3) EBI 1980 /(Retail Sales/EBI)1980 (4) Retail Sales1980/ Retail Sales per Square Foot 1980 (5) Total Demand for Retail Area 1980 - Existing Retail Area M N N N I Store Type Supermarket General Merchandise Department Store 0 0 Allocation of Net Demand for Retail Area Table 4 Allocation by Percent of Total Sales Percent of Total Sales 23.00 17.25 15.37 Apparel Store 7,87 Furniture/Household/ Appliance 7.69 Furniture/Home Furnishing 2.90 Gas/Service Station 13.37 Lumber/Building/Hardware 7.58 Drug Store 4.97 TOTAL 100.00 High Allocation Low Allocation 59,361.85 26,931.85 44,521.38 20,198.88 39,669.20 17,997.50 20,312.07 9,215.37 19,847.50 7,484.75 34,507.30 19,563.60 12.827.32 258,095.00 Table 5 Allocation by Retail Floor Area Standard Store Type Percent of Total Area High Allocation Food 14.5 37,423.78 General Merchandise(1) 29.7 76,654.22 Apparel Store 18.0 48,005.67 Department Store 16.0 41,295.20 Furniture/Home Furnishing(2) 9.4 24,260.93 Hardware Store 7.6 19,615.22 Drug Store 4.2 10,839.99 TOTAL 100.0 258,095.00 (1) Includes: Variety Yard Goods Fabrics Garden Shops Flowers Hobby Shops Tobacco Books/Stationary Jewelry Sporting Goods Camera Credit Jewelry Toys Cosmetics Pet Shop Cards/Gifts Music Stamp Redemption (2) Includes: 23 9,004.60 3,395.75 15,655.60 8,875.80 5.819.62 117,095.00 Low Allocation 16,978.78 34,777.22 Furniture Appliances Floor Coverings Radio, TV., HiFi China/Glassware 21,779.67 18,735.20 11,006.93 8,899.22 4.917.99 117,095.00 7.4 FOOTNOTES 1. Effective Buying Income (EBI) is defined as "personal income -- wages, interest, dividends, profits, and property income --minus federal, state, and local taxes. It includes (1) net cash in— come; (2) income in kind...; and (3) imputed income.... Effective Buying Income is generally equivalent to the government's "disposable personal income." However, it does not include wages paid to servicemen stationed overseas." 2. The Central Business District of Iowa City is defined as the area bounded by Iowa, Gilbert, Court, and Madison Streets. 3. Community Builders' Handbook, pages 318=319. 24 25 El REFERENCES 0 Bureau of the Census, U.S. Department of Commerce, Statistical Abs.ract of the United States, 1974. Bureau of the Census, U.S. Department of Commerce, U.S. Census of Business Retail Trade, 1963 and 1967. DeLeuw, Cather, and Company, Microanalysis Report, Iowa City, March 1974. General Growth Development Corporation, Shopping Center Feasibility: Hawkeye Plaza, Iowa City, March 3, 1973. Johnson County Regional Planning Commission, Staff Report: Preliminary Population Projections for the Year 1995, January 24, 1972. Old Capitol Business Center Company, Link Programs, Inc., City -University Urban Renewal Project I, Prosect Number Iowa R-14 Iowa City, Iowa, 1972. Sales Management Survey of Buying Power, 1967, 1969, 1970, 1971, 1972, 1974. Survey of Current Business and Sales Management, 1967, 1969, 1970, 1971, 1972,1974. Urban Land Institute, Community Builders' Handbook, Washington, D.C., 1968. 42 26 0 0 HOTEL -MOTEL DEMAND Stephen Esbin C.J. Kurtz As part of the Iowa City Urban Renewal Project (City -University Project I) there is a proposed centrally located 150 room hotel. The hotel facilities include; a 200-250 seat restaurant; 60-80 seat cocktail lounge; 50-60 seat coffee shop; banquet -meeting space for 200-300 persons- divisible into 4-5 separate meeting rooms, and an indoor pool and sauna. The hotel building is to have an area of 130,400 sq. feet. At present there are 21 principal lodging establishments in the Iowa City area, with a total of 1477 units. Only one of these,-tfie Rebel Motel with 22 units, is in the CBD with the majority of the remaining facilities located in nearby Coralville.(see Appendix C). There is then, no reason to investigate historical data to measure growth in demand for facilities in central Iowa City since so few facilities have been provided. If a market does intact exist, it is presently untapped and the existing facilities and potential demand are used to estimate the economic feasibility of a centrally located hotel. The markets that primarily support the lodging facilities in the area (University 6 Hospitals) are located in Iowa City. It is expected that as the university and hospital facilities expand that the demand for hotel facilities will increase. A measure of how fast the university and hospital are expanding has no relevance to this study as there is no direct correlation between the expansion of university enrollment or to the hospital facilities as it relates to demand for over -night lodging. The most important information concerning the economic feasibility of a new hotel is the present availability of lodging establishments and their 27 , 11 accessibility. There are, however, some competitive advantages from lower rates and amenities provided, but without sufficient demand they are not sig- nificant. The advanta�. .,c _ , `'I'Jajor facilities is important and is the major basis for thecalculated producing of the market that the new Percentage facility would capture from the existing establish- ments. M M 0 Conclusions 0 The new facility is expected to have an average annual occupancy rate of 82%. At 100%, occupancy the hotel provides a possible 54,750 room -nights (150 rooms x 365 nights) of which 44,650 will actually be occupied. Room -nights was used as the measure for each identified market. This is the number of rooms actually occupied times the number ofithe facility is used. Specific findings include: --5,750 room -nights from hospital outpatients --1,890 room -nights from hospital visitors --13,5560 room -nights from sales traffic --12,600 room -nights from business meetings and conferences --1,500 room -nights from football games --1,200 room -nights from special events -8,210 room -nights from reservations traffic 3 29 0 Methodology Demand Relationships 0 The market for lodging facilities covers a broad range of activities: 1) University Hospitals outpatients and accompanying parties. 2) Hospital visitors. 3) Hospital salesperson's visits. 4) University sporting and special events. S) MWGJ* &nd cw%foraecc.i In addition to these locally generated markets, the proximity of I-80 to Iowa City provides a potential market from travelers through a reserva- tion network. This is distinct from travelers stopping over -night at a con- vienient motel near the highway because of nightfall. hospital outpatients visitors reservation network meetings S salespersons conferences LA DEMAND FOR OVER -NIGHT LODGING sports 6 special events 30 0 • The potential number of people in each of the first four markets was measured and multiplied times the percent of the market the new facility cpuld capture in order to measure potential annual room -nights for the new facility (see Appendix ll). Only outpatients and accompanying parties from University Hospitals were used since only that hospital serves the entire State of Iowa. Mercer Hospital serves.Johnson County and several surrounding counties but all users are within distances that would not necessitate an over -night stay in Iowa City. The Veterans Administration Hospital serves a larger area but does not have a large outpatient clientele. Hospital visitors calculations were computed from inpatient figures from all three hospitals. Sales traffic , it was discovered, is heaviest between March and December and is based on a four day week (Monday through Thursday). Salespersons then, use the facilities 144 nights annually. Total salespersons annually was calculated from the percent of occupancy during these nights. Room -night measures for football games and special events were not based on the gravity model used for the other markets. In each case a 100% occupancy was assumed for the weekends involved. 5 31 a Gravity Measures 0 To measure the percentage of the present room -nights that the new hotel would capture from the presently existing facilities, the existing facilities were divided into three groups. Motel Group A included the larger facilities on I-80 with amenities including pool, restaurant, lounge, meeting rooms and TV. Also included were the one small motel downtown and the Iowa House which is located on the UI campus (these two motels were included because of their central location). The facilities identified are those patronized by persons coming to Iowa City for business meetings or conferences and sales persons. Motel Group B included smaller facilities near the University Hospitals which are patronized by hospital outpatients staying in Iowa City over night and by hospital visitors. Hotel Group C facilities include those on I-80 which do not provide many amenities and are used by I-80:itravelers on a non-reservatmon one night basis. The new facility,ds not expected to be able to capture any measurable amount of this market since it will be some distance from I-80. One facility, the Carousel Inn, had the necessary amenities to be identified with Group A but the location to be included in Group B. This motel was weighted !4 in each of these groups. The first four identified markets were divided into two categories: 1) those generated from the University 2) those generated from the University Hospitals I: Each market category was assigned a central point: 1) the intersection in front of the VA Hospital 2) the intersection of Iowa & Madison The distances from each motel within the group associated with that market was measured to this central point. The distance from each motel in Group A was measured to Madison & Iowa and Group H to the intersection in front of the VA Hospital. These figures were used in the following formula to determine the percentages of present demand chat the new facility would capture. CL i JJ z dJ a= 4 of units in the new facility d= distances to market i= new facility j= all other facilities (see Appendix A charts 1 & 2) The market percentages for sales persons was based on motel Group A and only the total number of units involved in this group were used in computing Possible room -nights. The amenities were considered of major importance in attracting sales traffic involved in business entertaining to the new facility. N 33. 0 Appendix A University Market --Motel GroupA Facility Iowa City: Howard Johnson Highlander Inn Iowa House Rebel Motel Coralville: Ramada Inn Canterbury Inn Holiday Inn Ironman Inn !I Carousel Inn New Facility Total Distance (miles) 0 Di s_ t�nce2 Size Potential (ll of units) 3.2 10.24 100 3.6 12.96 97 0.3 0.09 112 0.5 0.25 22 5.0 25.00 100 2.1 4.41 109 5.0 25.00 168 5.0 25.00 146 1.4 1.96 42 0.5 0.25 150 600 2012.4- 30% of out of towners attending business meetings and conferences. E:3 9.77 7.48 1;244.44 88.00. 4.00 24.72 6.72 5.84 21.43 1412.40 600.00 2012.40 34 Hospital Market --Motel Group B Facility Coralville: Travel Lodge Clayton House Super Inn Hawkeye Lodge Alamo Siesta I Total New Facility Total Distance (miles) 1.1 1.0 0.9 0.8 0.5 0.4 0.8 1.0 0 Distance2 Size Potential Q of 1.21 1.00 0.81 0.64 0.25 0.16 0.64 1.00 150 713-21% of outpatients and hospital visitors 9 80 50 20 30 45 20 150 66.12 50.00 24.69 46.88 180.00 125.00 563.00 150.00 713.00 35 • E The following motels were included in Motel Croup C: Kings Inn Motel 6 Friendship Markee Blue Top Pine Edge Capri 10 36 A Appendix B Potential Room -nights from Outpatients • 1) 0 of outpatients from outside Johnson County annually x percent staying in town over night= // of outpatients using lodging facilities annually. (208,564 x .25= 52,141 2) // of outpatients using lodging facilities annually x // of accompanying family members per patient 0 of accompanying family ging facilities annually. (52,141 x .05 - 2,607) members using lod- 3) // Of outpatients using lodging facilities annually + // of accompanying family members = # of potential single room -nights annually. (52,141 + 2,607 = 54,748) 4) // of potential single room -nights annually divided by 2 = annual double occupancy room -nights. (54,748 2 = 27,374) 5) // of double occupancy room -nights x % of market the new facility can expect to capture = potential room -nights annually for new facility. (27,374 x .21 = 5,750) Potential Room -nights from Hospital Visitors 1) /i of inpatients per month x per patient = # of out of town visitors staying overnight (3 // of out of town hospital visitors using lodging facilities. ,000 x .25 = 750) 2) 4 of out of town hospital visitors using lodging facilities per month x 12 = // of out of town hospital visitors using lodging facilities annually.(assumes 1 night stay). (750 x 12 = 9,000) 3) # of out of town hospital visitors using lodging facilities annually x % of market the new facility can expect to capture = potential room -nights annually for new facility. (9,000 x .21 = 10890) . Potential Room -nights from Sales Traffic 1) Average y, of rooms used by sales persons x // of units = // of rooms used by sales persons. (896 x .35 = 313.6) 2) // of rooms used by sales persons x // of nights the facility is used annually = # of possible room -nights from sales persons annually. (313.6 x 144 = 45,158) 11 37 0 0 3) # of possible room -nights from sales persons annually x % of the market new facility can expect to capture = potential room -nights annually for new facility. (45,158 x .30 = 13,547) Potential Room -nights from Business Meetings and Conferences 1) # of persons registering for meetings 6 conferences annually x 2 from out of town that attend = # of persons attending conferences using lodging facilities annually. (28,000 x .75 = 21,000) 2) # of persons attending conferences using lodging facilities x average length of stay (in nights) = # of room -nights from g Persons attending conferences annually. (21,000 x 2 = 42,000) 3) # of room -nights from persons attending conferences annually x % of market the new facility can expect to capture = potential room -nights annually for new facility. (42,000 x .30 = 12,600) Potential room -nights for Football Games 1) 0 of home football game weekends annually x average length of stay (in nights) = # of nights the facility would be used annually. (5 x 2 = 10 2) # of nights the facility would be used annually x 150 rooms (assumes full occupancy) = potential number of room -nights annually for new facility. ( 150 x 10 = 1,500) Potential Room -nights from Special Events 1) # of special events annually x average lenght of stay (in nights) = 0 of nights the facility would be used annually. (4 x 2 = 8) 2) # of nights the facility would be used annually x 150 rooms (assumes full occupancy) = potential room -nights annually for new facility. (150 x 8- 1,200) 12 38 0 Potential Room -nights from General Reservation Traffic 1) average % of rooms occupied by travelers daily x 150 rooms _ 11 of rooms occupied by travelers daily (assumes 1 night stay), 2) 11 of rooms occupied b (150 x ,15 = Y2.5) . (365 daily x 365 days = potential room -nights annually for new facilit Y• (365 x 22,5 8y212) 13 39• Appendix c Existing Facilities An inventory of existing facilities is shown on Table A. There are 21 existing facilities with a total of 1477 units available. The average cost for a single room is $12.00 nightly and for a double $16.00 nightly. Of the 21 existing facilities, only 4 are in Iowa Oity with 1 located in the downtown area The Iowa House is located on the UI campus which is adjacent to the downtown area. There are also several privately owned lodging houses that provide rooms (mostly for hospital outpatients) and one university owned facility for out- patients only (West Lawn with 16 beds). These were not included.in the survey since they do not provide a substantial number of total units so their relation- ship to the new facility is negligible. 14 all 15 41 Table A Facility # of Units Costs Amenities Iowa City: ,;ingle double Howard Johnson 100 $12.00-1400 $16.00-1900 p,r,l,m,ctV Highlander 97 $15.00 $21.50 p,r,l,m,cty Iowa House 112 $12.50 $16.50 r,m,tv Rebel 22 $7.0.00 $12.00-14.00 tv Coralville: Holiday Inn 168 $13.00-1500 $16.00-20.00 p,r,l,m,cty Ramada Inn 100 $12.00-15.00 $14.50-21.00 p,r,l,m,cty Canterbury 109 $16.45 $18.45 p,r,l,cty Carousel 84 $12.75-14.75 $15.75-17.75 p,r,l,m,cty Ironman Inn 146 $16.00 $20.00-21.00 p,r,l,m,cty Travel Lodge 80 $10.00-12.00 $13.00-16.00 p,r,l,tv Clayton House 50 $10.00-12.00 $12.00-16.00 p,r,l,cty Super Inn 20 $8.00-0.00 $12.00-14.00 tv Hawkeye Lodge 30 $8.00-10.00 $12.50-15.50 tv Alamo 45 $10.00-11.00 $12.50-15.50 ctv Siesta 20 $8.00 $12.00 tY Kings.Inn 96 * * tv Motel 6 103 p,tv Friendship Markee 40 * # tv Slue Top 12 tv Pine Edge 25 * * p,tv 15 41 Table A continued. Facility # of Units Costs Amenities Coralville: dingle double Capri 18 * * p,tv Total 1477 Average Costs $12.00 $16.00 Key ctv= color television tv-- black 6 white television 1 = lounge m = meeting rooms P = pool r = restaurant * = not included in model 16 42 Appendix D THE PROPORTION OF A•COUNTY REISDENTS HOSPITALIZED EMB WHO WERE DISCHARGED FROM MERCY HOSPITAL, IOWA CIN IOWA M 10 2-29, 1973, — .-..« W ....... .�... KEY Illinois Missouri 0 to .9% 1.3t '- : ;:: S. Dakota 1.0% 1.0% to 9.9% Other � States 2.2% ♦ Location of Hospital 10.01 to 49.91 ........ :::::::.... s�° 50.0% to 100.0► THE PROPORTION OF ALL COUNTY RESIDENTS HOSPITALIZED SEPTEMBER 2-29, 1973, 0 WERE DISCHARGED FROM VETERANS ADMINISTRATION HOSPITAL, IOWA CITY, IOWA aw.rr i w NM 1 ........... ......... ......... ......... ............ wr, r ......... w -r.. w.e...... wort ..... � W wi. ......... V1w r..r ......... ......... ......... ......... ......... .......... w.-�YwM........... Illinois 14.8% — ...KEY Missouri 3.9% - ' Nebraska 2.0% - W 1 0 to .9% ....... S. Dakota 2.0% a 1.0% to 9.9% Other States 2.2% 10.0% to 49.9% A Location of Hospital S0.0% to 100.0% 13 • 0 0 18 44 THE PROPORTION OF ALL COUNTY RESIDENTS HOSPITALIZED SEPTEMBER 2-29, 1973, WHO WERE DISCHARGED FROM UNIVERSITY OF IOWA HOSPITALS AND CLINICS, IOWA CITi, IOWA': ................. ........................ . ....... . ................ ........ ............. .. weer ...r..... r.n .... ......... ......... .......... .....�.:::: ......... ... .......... ......... Y..1...... ::......... ' ............. ... .......... ......... ......... . ......... ........: ..... ......... .......... ......... . : .... ......... ......... ......... . ...... ....w•. .•Y.........•MIV1:: :•IJY; :::: ............ ......... ..... : .. : ::::: ...... r _ _ :c; KEY . .: . :..:. 1 Illinois 17.5% • 0 to .93 Minnesota 2.01 �i•iN; ��� Missouri 2.2% ........................:::.................................:::: .......................p iuwi; : �: D 1.0% to 9.9% S. Dakota ..................::::::ii: .................. 2.0% ii:i:::ii::i:::i:::::::::::::......::::iEiiiE .......... ....... 10.0► to 49.91 Wisconsin 2,2% ® Location of Hospital Othor States 11.7k _ — ��°.� S0.0% to 100.0%1 I 0 18 44 0 • DFMAND FOR EATING AND DRINKING ESTABLISHMENTS Steven Schmidt Moderate growth is expected in the demand Raphael Ben -Ami for eating and drink- ing facilities over the next decade. Our estimates indicate that by 1980 (with the addition of hotel facilities deducted) it would be reasonable to expect the addition of another average revenue pro- ducing facility. Four more could be accommodated by 1985 There are numerous factors which must be considered when examin- ing these figures. The availability of space by 1985 may limit this growth causing any further expansion to occur on the fringe around the project area. Large facilities and the expansion of existing ones may revise the projected number of facilities down- ward: closing of others will revise it upward, presumably the area will maintain a competitive edge over outlying areas. The hotel facility should act as a complimentary facility (because of a broader clientele) arra consequently may increase demand in the area rather than absorb so much of the projected increase. A large part of the demand is, to a large extent, dependent on two large, relatively captive markets. One of these is the stu- dent Population heavily concentrated in the area. Any new housing for this age group will strengthen demand. The other market is that of the daytime population available for lunch facilities. New office/commercial developments as well as increased campus enroll - went will augment this market. It is expected that the hotel fa- cilities will make a play for a certain strata of this demand, 45 • 2 • Analysis Projected growth in demand was split among four areas (see appendix), the urban renewal area being given roughly lo% of total sales. The size of the establishments was fairly evenly distri- buted within each area so it was assumed that an average revenue figure per establishment would be adequate; and that distribution of sales between areas according to the proportion Of -establish- ments within each was a reasonable assumption as well. These proportions were carried forward in the projections. (It would be reasonable to argue that nonresident sales - to people from outside the county - could increase the proportion of sales to the two outer rings since most of the motel facilities are there. This must, however, be balanced against increased student popu- lation and concentrated central demand.) Projections were made on a straight line basis using several different underlying assumptions and base figures. All figures are listed in the appendix. Projection #1 is based on total eating and drinking sales main- taining approximately the same proportion of total retail sales as during 1973-1974. During this period, the proportion grew from 10' to 11$ (this is highlighted in Projection ,#2 where eating and drinking sales grew at a 14% annual rate from 1973-1974, 28% in inflated dollars). Assuming this surge to be a quirk, the propor- tion is projected at 12% for 1985. Projection #3 is based on a low population growth rate and assuming either a 5% or a 2 1/2% annual real increase in demand. Projection #4 is based on a more rapid increase in population and a 5% annual increase in real . 46 3 LJ • demand. This mould be in line with an expanded university enroll- ment, Projections #2 and ,µ3 (with 2 1/21' per capita expenditure annual growth) are the high and low estimates respectively (see chart in the appendix). A moderate projection of $2 million for 1980 and $2.4 million for 1985 (1967 dollars) is then used to estimate de - mend for the project area. Using an average establishment income of about $100,000, the following estimates are arrived att Increase in sales from 1974: $ 625,000 by 1980; $1,025,000 by 1985 Sales to hotel facilities* - 500,000 - 500,000 $ 125,000 $ 525,000 1 facility 5 facilities *hotel sales depend on capacity and hours 47 All Prices 1967 $'s 1973 1974 1980 1985 1973 1974 1980 1985 • 4 • APPENDI% Projected Demand for Project Area }1 Proportion of Total Retail Sales Total E & D Area E & D 311, 77, 8 $ 1,202, 02 $13.346,283 $ 1,374,667 $17.439 097 L 1.796,227 :620,849,777 $ 2,147,527 Per Capita II 5* Annual Growth Tota & D Area E & D 92 #3 E & D Per Capita I Prosection 5'% Annual Growth 2 1/2% — Total D Area E K. D Area $ 2,405,859 $18,360,000 $ 1,891,080 $ 1,663,600 $ 3,265,182 .$22,359,000 $ 2,302,977 $ 1,905,912 Moderate Area E & p $19'574,285 $ 2,016,151 $ 2,000,000 $24,534,000 $ 2,527,002 $ 2,400,000 Nonresident sales are 30% of total sales Total E & D - total eating and drinking sales for Johnson County Area E & D - urban renewal area sales Population 1970 1973 1974 700 73,800 72,600 75,000 12"0 1985 75 6 77,100 80,600 84,600 Increasing projections based on 1 0 population &974 projected through 1973 1 9 separately, Per Capita p, 1974 1980 1985 P $131 T1 7-0'$203 5� annual growth in real demand $150 $168 2 1/2� I, Reinflated extremes and moderate compromises 1973 : Low Moderate 1974 61,600,929 High 2,052,378 1980 3 1985 4,478,0 $3,800,000 $4,571,128 7 892 5,640,000 7.673,177 CPI 1967_100 1973 1974 1980 1 g5 133.1 1 9 3 190 ?9 35 411 7s000 4 2.rf I r{ PoaucA77oN iaAM EAnN6 AND OQINKIN6 SyFsI%7 ER P cT ATEA as u� g rA a c Z \ VV a ob 0 .p Sp N ® 6 • SALES AREAS Number (percentage) of establishments 34 (29.3%) IOWA CITY LIMITS 42 (36.2;9) BLOOMINGTON ST 28 (24.1%) WASHINGTON ST. F N m 12 (10.3$) m ?.� z � z H COURT ST. a Er s OFFICE SPACE DEMAND • Carol Abel Mike Miller The demand for office space in the urban renewal area was h Sue Sheets as a function of the number of office employees in the Yp°thesized District assuCentral Business ming a space requirement of 200 SF per employee.1 Dos - 200 SF (# Of office employees in CBD) Employment statistics for Johnson County in 1973 revealed the number of employees in each business category. Utilizing this information and para- meters developed by Link Programs, Incorporated, it was possible to estimate the present number of office employees in the Iowa City CBD, thereby alleviating the need to survey each business. Figures are shown in the following table. Jobtype TABLE I Total EmploymentOffice Office Using % Share of Employment Office Space Estimated Amount in CBD Office Transportation, Employees Communication, in CBD Utilities 830 39 324 30% Wholesale Trade 97.2 510 20 Retail Trade 102 20% 20.4 4690 3 Finance, Insurance, 141 40G 56.4 Real Estate 670 90 Services 603 40% 241.2 3160 47 Other :Ion -Manufacturing 1486 40� 594.4 110 20 rotal 22 50% 11 iuzU.6 or 1 Calculation of the potential downtown share of office space equals 204,200) less the existing supply(1021 x 200 SF (79,000 SF)2 then, comprises the demand at present. This figure is calculated to be approximately 125,200 sF of demand for new office space in the CDD in 1975. 1 Link Programs, Incorporated I Ibid 51 • •Imbedded in these figures and z the following estimations are four assumptions; 1) that all CBD demand will be developed in the Urban Renewal core area which presently occupies approximately 657 of the CBD area; 2) that latent demand equals zero; 3) that there will be no public inter- vention influencing development; and 4) that partial development of the Urban Renewal area will offer no attraction factors beyond those existing in 1975. Under these assumptions, two different methods (albeit similar) of estimating the number of future office employees were developed as functions of growth. The first approach considered office employees as a percentage Of total population. In 1973, 1021 office employees worked in the CBD, comprising 2.1% of the Iowa City urban area population. Given total population for 1970 (46,850) and 1974 (47,744)3, 1980 population was projected by the linear model to be 49,150. (See figure 0. Assuming that this ratio of office workers per total population is an optimal condition, i.e., that'an increase in population does not require a greater or lesser proportional rise in office workers, then, the 1980 estimate of office workers is 1051 (2.1% of 49,150). Future demand, utilizing the space requirements, is 6000 SF for 30 additional office employees or a total of (125,200 SF + 6000 SF) 131,200 SF needed in 1980. Figure 2 shows the relationship between space and employees. The second method used to estimate future number of office employees was based on the notion that the number of office employees is dependent not only on the total population, but also upon the composition of business or major industries within an area. Paralleling Loury's models of land use, we assumed that fluctuations in available Jobs in basic industry would affect service and retail employment. Therefore, a ratio of office workers in the 3 Johnson County Special Census 52 V 0 • CBD to total manufacturing employment was calculated for 1973 data. The University of Iowa faculty and staff, many of whom work adjacent to the CBD, were included in basic industry employment. Table II reflects these figures for Iowa City. TABLE II 1947 1954 1958 1960 1973 Projected loan Manufacturing Employees 336 U of I Employees 3700 Total Manufacturing 4036 Employees Office Employees Ratio manfg t. Empl. off. Empl. 540 646 983 14804 4315 4803 5181 7629 4855 5449 6164 9109 10,058a 1021 1130b 8.92 3 Manufacturing employment for 1980 was projected, first by using 1947 and 1960 data. The trend, however, appeared to be rising as it approached 1960, thus, a second projection using 1960 and 1973 data was calculated. (See figure 3). The low estimate (9400) and high estimate (10,716) were averaged to yield a medium projection of 10,058 manufacturing employees in Iowa City for 1980. Assuming a constant ratio of 8.92 manufacturing employees to one office employee, there will be a 1980 office employment of 1128 people producing a net office space demand of 146,600 SF (225,600 SF less existing 79,000 SF). One factor which cannot be ignored in planning for office space is the availability of parking space in the area. Generally, a one-to-one ratio 4 Public Transportation and the Work Trip, Johnson County Regional Planning Commission, 1974 a Estimation frc..linear model growth projections 53 0 0 0 4 of parking space to office space is considered adequate and often necessary to obtain financing5, which, in light of our estimates, necessitates a need of 131,200 to 146,600 SF of parking area. In order to determine the precision of our measurements and relate these findings to a realistic use of urban renewal land, we compared our demand estimates with those of a previous study done by Link Programs, Inc., as well as, current indicators. Refer to Table III below. Link Miller, Abel, Sheets, Inc. Real Estate Rule of Thumb Planned Development6 TABLE III Comparison of Office Space Demand Net SF in 1980 205,500 131,200 - 146,600 98,300 147,600 Additional SF from 1975 Estimates 90,500 21,400 19,300* 68,600* *Based only on existing 79,000 SF of office space, not estimated need in 1975. According to current real estate postulates, about 2 SF of office space per capita will, on the average, serve the needs of the residents of an area Assuming a 1980 population of 49,150 people, the resultant demand value is much lower than others. On the other hand, Link measurements appear higher in comparison, due to the fact that they calculated increased attraction factors over time. Perusal of recent land use and redevelopment data reveal 5 Real Estate Text 6 DeLeuw, Cather and Co., Microanalysis Report, March 1974. 54 0 • that 147,600 SF of office space are 5 actually planned for development we have chosen our higher estimate thus, needs in 1980. (146,600 SF) to represent office space The Urban Renewal Survey7 disclosed a the CBD for a Preference among businessmen in multistory office building as opposed to one-story, scattered site, offices. Although constrction of one-story buildings, not including land costs would be less expensive per square foot due to fire protection codes. There is evidence of an overall communications advantage to offices being located in the same building. As noted previously, 146,600 SF of parking area will be needed. At 300 SF as 489 per space, that area is inter Parking spaces, which, it is anticPrated anticipated, could easily be accom- modated by the planned six -level parking ramp in the core area. The .following table shows measurements of land needed for 146,600 SF of various heights. office space at 7 Link Programs, Inc. 55 TABLE IV Land Requirements for 146,600 SF of Floor Space SF of Land Construction Costs per SF Total 1 story 3 Costs per SF 146,600 less than 3 story 1.12$30 - $40 _ 48,866 5 story .67 $30 - $40 - 29,320 8 story .42 $30 - $40 $46 - $47 Redevelopable 18,325 S30 - $40 - Land 517,595 Total Urban 11.2 Renewal Area 7 Link Programs, Inc. 55 0 • 6 While one-story buildings are less expensive to construct, land costs are much higher. Piulti-story buildings afford the advantage of averaging construction and development costs with a lower land cost. Since land is the largest expenditure category in development ($38 per SF in the Urban Renewal Area); lower land expenditures seem necessary in order to attract tenants at a rent comparable to current market prices. In addition, one-story office buildings would occupy almost one-fourth of the developable land in the core. Multi -story buildings would allow a more conservative use of land, leaving more uncovered ground areas. Based on general cost estimates, various architectural and construction firms in Iowa City indicate that a three-story building may be more expen- sive per square foot due to land costs thus necessitating a cheaper building and that there is no apparent advantage to building a "high-rise" office complex. Our recommendation of a five -story office building, then, is founded on the fact that a five -story building would yield a higher tax return to the city than a three story structure while remaining more visually pleasing than an eight -story monolith. 8 Old Capital Associates 5G 4f,.r„ HY,~ y�.un Y1,aee 47,see Crty loo fa k-/�bh FIGURE 1 Soa.a. C'f� Po u. /a kon� 1970/ MY) and IX Cvf;,„�f��/� _ _ . .... •� ... "11. 1777 177r /7» %1Po /!P/ DQ to I 9 oft;« 9 E-pl ieea .n CBD (es+;—, J) 1970 r17/ rfaa rrr� r1ri r17S Nrc M? r -r71 nM ifew /fIr/ • `I Sg r<t re— Fc•t�ge • of- o{f i ce Spsae R e 15 ";,ed Cn1-soe rte pew ew.�b�Ie) 11 FIG(CRE 2 _Off;w 6yorkeU in CBD., /975' r /Q8O 1970 r17/ rfaa rrr� r1ri r17S Nrc M? r -r71 nM ifew /fIr/ • `I Sg r<t re— Fc•t�ge • of- o{f i ce Spsae R e 15 ";,ed Cn1-soe rte pew ew.�b�Ie) 11 Ic,c:r 4cc, YCc, 7CiO Jt fG Paul Glaves • e Dick Smith Ed Bol den 102 t 2".G 'OUS I&G: UR BAN REVEWAL AREA The Key considerations in this analysis are, 1) Space nvailublo in te.o urban ronewal area 2" Rent levels in Iowa ';ity 3) Costs to coni truct now dwelling units 1) Space avail aije in the urban renewal arra A. Acres Entire urban renewnl areas 11.56 acres All parcels aro in the CFO, zone which ,.recludu rr,sidences on the ground floor, unless the zoning ordinauco is amended or a variance is sought. (Accomplished) The LI1:K study identifies six Carpels for r•:sidu:itial duvv..lC+:aent. They are, 93-1 57,000 SQ.2•'T. lel-1 57,000 It 101-'' I"'.,000 " 101-2 26,`00 " vacated alley 6,200 " vacated puree] 36,000 " Totn1 204,700 sa 9.7 acres B. Other Parameters The following additional parameters are assumed to arrive at cai:acity DU's (awelliug units) for the given residential acreage. a) parking space = 300 SQ.FT./DL (One parking spaco per D11). b) Townhouse is trru story- I. total 3 .FT. is ground coverage. c) Garden Apartments are three story- (SYith 15> added par DU 1'cr public areas -stairways, halls, etc.) 1/3 of total aQ.iT. -.round covtr,gr':. LI@:Y proposes t}.c following hnu::ing types and ouuntit.ios. Townhouse --16C units Garde;u Apartments--ILO-lbO units IGGG SQ.FT. 00 T. lti"'O f'". 750 SQ.FT. 15.^,(• SQ,.i•T. 900 SQ.FT. It was decided to follow along with the LINK S:.FT.Aousing types fairly closely. Using the following housing types, the needed 3Q.F'". of ground space for euchtypo i:;; 1400 SQ.FT. (Townhouse)=700 SQ.FT. ground Spaco/DU 18.00 SQ.'r'r. ( " )=900 3Q.FT. ground cPaco/DU 500 SQ.FT. (GnrdunJhpt.).19:! SQ.FT. j;r:und spucc/D1I 7b0 SQ ..'T . ( ) = 2B!1 3Q.1' T . ground : p+cee/:'dl 1000 SQ. ( ) =383 J4.FT.. grnund p-AroA)U GO 0 (2) • This gvios the follrwin, ;ross dr:nsities of DU's per acre. Tc -,inhouse 1400 7C:0 1:.00(900) GardenApt 0 192 750(288) 1000(383) 80;.' cover c 73 F4 Here (3Q,FT ) total ground space reouircmants were 14G0(700) 700 + 300= lOGO Si ,Fm, -1800(900) 90CI + = 1200 - 500(192) 1-2 + ^ = 492 - 750(2t_18) 168 + " c 58N n -1000(.343) 363 + " _ (i83 5J% coverage 21 18 80„ coeur¢ e tu 59 51 figured as follows, C. ilnits/mix of hr u;;inU tyles (Mixes chosen here are fer 111ustrativu purposes only) Given a townhouse su-50 mix (14100-1800) on all parcels, the follow- ing total numhar of unit: xrc po:;siblu (assuming all parcels run bu used optimally), 50 D coverug« 91 units ©0,, cover',F; 146 units Given a garden apt, nix of 25/(50(:), 50f,('I50), 3 25J(ICuO) or: all purcels used optimally, the followin possible, g total number of units cru 80� covorage 275 units covera,.•e 344 units Given , the total ucreage to townhouse, the total ar.reage to gurder. apt•, the lollcWing number of units of each are possible, Townhouse C 508 covorage-45 units * 80% coverage -1/3 units Garden Apt, C 808 coverage -137 units 100% coverage -172 units Given 1/4 townhouse, and 3/4 garden opt., Tcvmhouse 50°' Carden Apt. �� coverage -22 units (0 803; coverage -206 units Fs 60% coverage -36 units w, 100% coverage -258 Unita '3u,"r 'Yi Possible ranges are us follows, Townhouse Garden Apt. AL1. Units 1/2 new 9l O . 4 1/4 l/? 182 to 245 Nnno /4 225 to 294 P,a es of�Unr}5 ALL 275 to 344 rrescnted in the summary above do not seem to be beyond the market limit when compared to the LINK estimates. Furthermore LINK ignored potential student demand other students. than that of' married 61 n �J (3) • LINK estimates; Ownership potential for bowl, houses at 1.8., of universit y professors and married students, for a total of 166 units, nt -Over, fo potential for pg U.len�unt. at 2,9:.,- of househcles are 50 and over, for a total Of u 5� units, 2 Rent levels in Iowa City A• Iowa City housing (;yil) urban renewal housing alter the present rent structure? Conclusion from the following, No,) 15,475 units in 15:70 -1.1,000 units, '70-'7, Y6—,475 its + Units, uuw since 172 units, domolished 17,00-- 0�5 (UFirox,___ 16,50L to 17,.,,00) Current Occupancy--_ou take 340 units •,vitt. no chulJphox-)� Tu lowor occupancy to 97•� ng- in housohold size, would Therefore, toversupply" market should ',,,UaW " without any oa to accomodate up to 340 units existing rent structure rethus with no significant changes in the sulting. R• Existing Rent Structure (1975 fi;;ures were projected the CPI for housing. from 170 using dovm for each rent category Also, 1970 % DU was break- the same in 1975) accelJted as 1970 1975 No rent No DU'.. Cumulative ' s <40 e rent ? <e 2.2 99.5 40-59 49-72 3.0 97.3 60-79 73-96 6,7 94.3 80-99 13.1 W.C. 100-11597-121 122-145 14.6 74.5 120-199 14C-182 18.6 tr . 9 J�. 150 243-24; 24.2 41.3 + 200 + 299 + 12.6 17,1 3) Costs 4.3 4..i Per unit cost $1000 (bath, kitchen, etc. ) Per Sq,pT, cost $25 (two story to•.•rnhouse three similar �onstructiur: story Larder, types) alit. Garden apt. SQ,F'T. increased bY )5 for public (LINK areas, hal lx•ays, etc. estimatod a ra:bc of 122 to 128/SQ„'T, by housing tyje,) G2 Bedrooms Type DU 11 Total co::t/unit- ?tent/mouth Rent/4.t?. 14; total Cont/month) CONCUTSION A. Given 1), 2), and 3) above and the :;ite location, it appears there is u market for all of the above housing types in the urban renewal area. All of the above (necessary) rents could fall within the rent paying ability of 74.55 of the market depending or. the number of r, ---.rt payers per unit. (see existing rent struct•)re) Even so, most of the typos 5351/3 rent .)aycrs 8117 4SO 4 " 113 1532 " " 77 2252 " 113 29B/3 " 100 would still be ar.,enible to higher levels of the market. H. Now the question is, "1',7rnt mix of' the above would be most desirable?" To answer this queation revenues por month were computed for each housing type if all the available land were devoted to that particular type. This allows a basis of comparison of the returns from each type. Type DU Total rout month Townhouse 50°, cov. Townhouse 1400 3Q.FT. unit 3 1 -;CO SQ.'r T . 5.35,10,E $3b1 85 4 1800 SQ.FT. 46,000 460 .?5 1400 Garden Apt. 133 57,050• 1U00 .'ff. 500 SQ.FT. 1`),300 1S? 1 750 aQ.FT. 22,500 225 .3G 2 1000 SQ. -T. 29,750 298 5 CONCUTSION A. Given 1), 2), and 3) above and the :;ite location, it appears there is u market for all of the above housing types in the urban renewal area. All of the above (necessary) rents could fall within the rent paying ability of 74.55 of the market depending or. the number of r, ---.rt payers per unit. (see existing rent struct•)re) Even so, most of the typos 5351/3 rent .)aycrs 8117 4SO 4 " 113 1532 " " 77 2252 " 113 29B/3 " 100 would still be ar.,enible to higher levels of the market. H. Now the question is, "1',7rnt mix of' the above would be most desirable?" To answer this queation revenues por month were computed for each housing type if all the available land were devoted to that particular type. This allows a basis of comparison of the returns from each type. Type DU Total rout month Townhouse 50°, cov. 1400 3Q.FT. unit 102 $35,700 1800 SQ.FT. unit 85 38,250 (BOLI, cov. ) 1400 SQ.FT. unit 133 57,050• 1U00 SQ.FT. unit 136 61,200 Garden Apt. (BOJ cov.) 500 SQ.FT, unit 334 50,100 750 3Q.FT. unit 278 62,550• 1000 30.17T. unit 239 71,930•• +hc From the above tablo(Ifollowing information has become evident. �7Tho townhouses at 50; coverage are clearly an inefficient use of the land comnnrod to utlwr resident! -0 uucs. Significantly less rent is returned by this housing typo oven though potential tenants could easily be roughly equal with other housing types depending on house- hold size. (TUb could be altered Lf' this typo could demand signifi- cantly morf�Pthan 1% of total cost. 1.(-r month in rent.) - Efficiency (500 SQ.FT.) garden art.'s are similar to the townhouses above in the amount returned. However, they are much closer to the last four alternntives. i (5) - Two bedroom (1000 iiQ.FT.) garden apt.'s bring the maximum rent return of all housing types. It probably would not be desirable to have this tyre only, however. - Both townhouses at 80'; coverage and the one bedroom (750 SQ.rT.) gurden act. at 80 coverage are comparable in returns. (100? coverages were dropped as thNse were considered undesirable from a social policy standpoint and were cousidered to be disamenible from FA market stand-oiat.) The following policy is suggested.then, efficiency garden apartments and the 50% coverage townhouses be dropped from consideration in the urban renewal area. These types could probably be provided elsewheru with lower opportunity costs. 3e -cud, any mix of the one or two bedroom garden a- partments and the three or four bedroom townhouses at 80,1, coverage wrild be desirable. Last, in any of t1e mixes above it might be well to allo- catea larger per c-ntago of the mix to the two bedroom garden apartments. 64 INSTITUTIONAL AND PUBLIC SPACE NEEDS Leslie Gallay This report evaluates two examples of institutional demand for land in the Iowa City urban renewal area: (1) demand for additional land by the University of Iowa, and (2) potential demand for city -county and semi-public institutional space. It should be noted at the outset that there are several Important characteristics of institutional demand for space that must be taken into consideration in such an evaluation: (1) all such demand is 'derived demand' contingent upon potential demand for institutional services; (2) since there is no clear market for public institutional services, need for institutional space must be indirectly measured; and (3) revealed demand for institutional services is often seperate from and different than 'need' for such services. Since each of,these factors complicates the process of evaluating demand in the institutional sphere, this report will address each characteristic independ- ently. Potential demand for institutional services will be assumed to be a function of the present or potential client population served by the institution: student enrollment for the University, county population for the other public services. Need for institutional space is primarily determined by size of client population with other factors such as type of service rendered and space allocation standards playing an important role. Revealed demand for institutional services and the resultant demand by such institutions for additional space is essentially politically determined either through willingness to pay for services and facilities through taxation, or through a political determination of what type of services should be provided. Each of these factors plays an important role in determing land utilization by public institutions. C" 0 0 University Demand for Institutional Space. As the largest employer in Iowa City and the base for more than half of the city's population, the University of Iowa figjlres importantly in the urban renewal process. Besides important effects on urban renewal because of size and location, the University has as an institution aquired significant parcels of land in the urban renewal area. flow and when it utilizes this land will play a crucial role in the future of urban renewal. The factors influencing University utilization of space have already been noted: (1) potential demand: existing and potential student population, (2) need for space: student population translated into teaching, research and support functions, and (3) revealed demand: the actual political decisions made concerning levels of funding and project approval. A single model can be utilized to combine the first two factors into a measure of future space needs. The third factor must be considered independently and then compaired to needs assessment. Needs Assessment* University need for additional land can be conceptualized as a function of enrollment with teaching, research and support services given different allocative weights: U D = TE+RE+SE where: UD University need for space, TE = Teaching space per student RE= Research space per student, SE= Support space per student * methodology based on Sasake, Dawson plan of 1965 M 0 Space allocation standards for teaching, research and support functions are derived from other educational institutions of similar size and result in the following average measures for the University of IO%4a:* Teaching 75 ft.2 per student Research 33 ft.2 per student Support 87 ft.2 per student These standards can then be applied to various potential student populations to approximate potential space needs, and then to establish additional space needs given present space available: Additional need = Potential need - Existing supply. For the purposes of this analysis we have stipulated three alternative parameters of student population:(A) population of 20,000 students, a conservative but realistic estimate; (B) population of 24,000 students, the optimal future Population given present University estimates; and (C) population of 30,000 students, an unrealistic estimate utilized by the Sasaki, Dawson study. Using these three alternatives we arrive at the following projections of total space need: A. (20,000 students) 3,900,000 ft.2 B. (24,000 students) 4,680,000 ft.2 C. (30,000 students) 5,760,000 ft.2 Based on 1966 total space of 2,835,000 ft.2, the University would need an additional: 1,065,000 ft.2, 1,845,000 ft.2 and 2,925,000 ft.2 of space respectively. These estimates are for constructed space only and do not consider open space, landscaping and other requirements. Using a 50% open space to building space factor we arrive at : (A) 2,130,000 ft.2, (B) 3,690,000ft,2 and (C) 5,850,000 ft.2 as alternative Land requirements. These factors * Sasaki, Dawson 67 do not consider alternative building formations nor multi -story construction. To accomodate these factors we divide by a factor of four, assuming that more than four story construction would not be possible in classroom and research facilities. Our final space needs figures are then: A. 532,500 ft.2 B. 922,500 ft.2 C. 1,462,500 ft.2 of additional space under the three population parameters estimated. None of thesu figures incorporate re -modeling nor more intensive use of existing facilities. However, they are reasonable approximations upon which more specific estimates can be based. In light of recent population trends at the University of Iowa it is safe to assume that only projections (A) and (B) are worth considering. Both of these estimates are considerably larger than the approximately 200,000 ft.2 of urban renewal land that the University has contracted foT, suggesting that at least on the basis of 'need' there is a demand for urban renewal land on the part of the University. The question now is how that 'need' translates into 'revealed demand' through the political process. Political Demand In gross measures the University 'needs' or at least can utilize the urban renewal land that it has contracted for. How that land is to be utilized and when it will be developed is basically a political question. Political both within the University and also between the University and its source of funds, the Regents and the state Legislature. Interviews with University planning officials suggest that despite all quatitative assessments of 'need' the crucial factor in University development is the W. Political climate. A number of facts illustrate this point; (1) according to University officials, the University has more land than it 'needs' for espansion purposes. Although much of this land is not 'developable', its existance points to the fact that the University's decision to purchase urban renewal property was a political one; it would 'aid' the city in stimulating interest in renewal and it would allow the University to "tidy up" its holdings on the East side of the river. This would allow the Uuiversity to develop at a 'reasonable' pace in the future. (2) Since the student population Picture fluctuates so widely, population projections are of little utility for Planning purposes. Political decisions about size and program structure are the controlling factors. 'Needs' analyis is ammunition in the political struggle rather than a determining factor. A political process of allocation takes Place between various departments and the administration and between the administration and the State. Often the Federal government is a crucial actor, the availability of research money being.the bottom line in many decisions. (4)In the long run of course the state legislature is the final arbiture of revealed demand. Through control of the University budget, it determines what is and is not done. On the other hand, the University has tremendous power to influence the legislature. A case in point is proposed construction of a new school of education center on urban renewal land. The University has submitted a request for construction funds for the past three years and has continually been turned down. They intend to continue to submit the proposal until it is approved. In sum, the real factor in University demand for urban renewal land is the political one. "Needs" might be assessed but they are only tools for the political debate. As a result we can only conclude that the University will utilize the urban renewal land that it has contracted for. In the present Political climate, the likelihood is that development will not occure quickly 0 0 enough to influence the urban renewal process: In the long run, the size and proximity of the central campus are more important factors for renewal. than will be the exact nature of the University's development of its land. City -County Institutional Space Since City -County facilities will in all likelihood not be a component o f urban renewal and as a result do not constitute a demand for urban renewal space, we will not evaluate the example extensively. However, we will touch upon it in passing as a further example of the fact that demand for in- stitutional services and facilities is determined in the political process. Need Assessment Using a varient of the same methodology exemplified in the assessment of University space needs, the Johnson County Regional Planning Commission has projected the following space requirements for city -county and semi-public institutiions (all figures represent needs in excess of cureent supply): We will not attempt to evaluate or correct these figures here. Rather, we will focus on the political question as to whether such is translated into demand or not. 70 1975 1985 1995 Johnson County Admin. 36,361 18,828 21,277 Judicial 19,060 20,852 24,780 Miscell. 50,947 61,527 69,587 Iowa City Admin. 25,355 29,207 33,355 Law Enforce. Police 6,500 8,043 9,587 Sheriff 13,000 16,656 23,313 TOTAL 131,223 155,086 178,899 We will not attempt to evaluate or correct these figures here. Rather, we will focus on the political question as to whether such is translated into demand or not. 70 9 • Political Possibilities We note first that current need for institutional space is estimated to be 131,000 ft2, more than 50% of the estimated need for the next 20 years. Yet this need was not considered in the present urban renewal project. The need has not been translated into a political demand for urban renewal space. Discussion with knowledgeable local officials reinforces this precieved desparity between need and demand. No consensus has been reached among local politicians over need for additional space. The present political climate precludes such consensus: elections are comming up and county residents do not appear ammenable to bonding issues to finance construction. At the same time, projected population growth is not sufficient to justify the additional space requirements, rather, bureaucratic expansion is cited as justification for additional space. Such an arguement is not likely to appeal to voters. As a result there is little likelihood that such 'needs' will be trans— lated into resolvable political demands in the near future. r71 AN RFNEIJAL IMPACTS ON TRAFFIC• CIRCULATION Brent Coulter This report is a summa^y and done in 1974 ana appraisal of two studies creased , ' 1_yzing the affects of street closures and in - traffic due to urban renewal, The study area is shown on Figure 1, The general conclusion of the studies was that no insur- mountable problems with re�;pect to traffic circulation and pedestrian conflicts will exist. Below are listed some major points of the anal�ises, 1 Re ort by De Leuw, Cather and Co Urban renewal and street closures could be without implemented creating undue traffic problems. Some peak period congestion and tion does not appear to be an overriding compared to Pedestrian tion w ula_ the creation of a strong g consideration „ active CBD, when - Consideration should be given to findin town routes besides Burlington Street, g other cross_ Iona]. Research area.. Thera will be a lack of internal circulation for the Clinton will become the major the north Ind north-eest,.Clinton throuPh j access to the area from traffic, internal will serve too circulation, and access to functions, abilltvpurlinvton will also o to Par'<ing) to carry futur serve too mane functions e through traffic is qunctions# and its - 80th Clinton and ? Ston will be to pedestrian f urlin, • substantial barriArs This report is not intende,i as a critique.of 17 mentioned studies. InsteL'A the previous_ modifications were made to the 72 ctreaK r 2 W w N $ Z J I � ewe I i PEWACR T �N6 1 I I I 1 � �L'IdRRRY I I I �Na � I l I I C D 1 jvha�� I twc�swc-[o+� 1 I I p C Figure 1. laucawaoej j 73 0 0 Institute report's methodolgy and assumptions to reflect a more current situation and more realistic consideration of !river behavior.? The conclusions below are the result of a quick and informal analysis, and are intended to provide another consideration of traffic problems in the study area. The Institute study identified critical intersections it the following locations; Burlington west -bound at Clinton, Burlington access to library lot east -bound, and Clinton and dashington, north-bo:ind on Clinton. These intersections were found to have levels of service D,D, and r respectively. The Institute study did not use any capacity restraints on streets when assigning traffic. It is the opinion of this report that some of the traffic assigned to Clinton will be diverted,due.to heavy pedestrian traffic and a planned narrow- ing of Clinton between 'Washington and Burlington. In partic- ular it is assumed that all through traffic will be diverted to less congested streets. ( e.g. Gilbert ). Recent events indicate the closure of Madison Street is not to be expected. Tnerefor, traffic diverted to other streets from Madison will be subtracted from those streets. The mo- ifications to Clinton's assigned volume are shown below. Clinton 1. Estimate of traffic on Clinton between Washington and Burlington = 14,000 vehicles per day. 2. All of the 2300 through trips are diverted to other streets. 3. The 2200 Yentacrest•trios-diverted from Madison were deducted. 74 4. The Institutestudy did not assign any parking for the Pentacrest to the library parking lot. Although no adjustment has been made for this, it should be noted that there does appear to bp some Pentacrest parking here. This would reduce traffic on Clinton, south of Market. 5. Over 6000 vehicles per day are destined to the CBD. If congestion becomes a problem, some of these trios may approach the parking areas around Burlington Street by coming down Gilbert. No deductions were made of these trips. 6. Total traffic reductions on Clinton = 4500. This re- duces the volume on Clinton to anproximatel.y 10,000 ve- hicles per day. A similar nroceo-dure was anplied to Burlington Street. Burlington 1. The volume on Burlington is estimated to be 24,000 vehiclos Der day. 2. Of this amount, 6700 trips to and from the library parkir- lot, 3000 to and from the Pentacrest and 2500 to and from the CBD were diverted from Madison. These volumes were then subtracted from Burlington. 3. Trips deducted from Burlington = 13,200. this leaves a volume of !0,800 vehicles per day. This figure ap- pears to be low as compared to present volumes on Bur- lington. The above considerations would tend to provide a less bleak picture of the intersections designated as critical by the Institute. Proper design, signalization , and general pol= icy should further reduce traffic problems. For example, lim- iting parking,in the ramp adjacent to Clinton, to substantially short-term parking, should reduce peak congestion.at the Clin- ton - Burlington intersection. (e.g. Short-term parking peaks from 11:30 a.m. to 2:30 p.m, while long-tr-rm parking peaks around 4:30 p.m. ) 7 5 • • • Further considerations might include grade -separating pedes-rian-auto intersections, especially on Burlington and Clinton. Also, pedestrian traffic could be diverted to less congested areas such as the proposed mall along Dubuque street. REFERENCES Eugene Wilson and Kenneth Dueker, "Street Closure Analysis: Combined City -University Plans" (Iowa City: Institute of. - Urban and Regional Research, University of Iowa, 1974). De Leuw, Cather and Co.,- Microanalysis associated with Area Transportation Study done for Johnson County Region- al Planning Commission. (1974). 76 faty or 10%va city MEM®RANDt5M DATE: June 18, 1976 TO: City Council \ FROM: City Manager r11 RE: proposed Ordinance Providing for Discontinuancq of Water Service and Establishing Lien Procedure An effective process for terminating water service, which includes a hearing procedure, should be adopted to minimize delinquent accounts. On May 11, the City Council accepted a discontinuance of service ordinance on first consideration. However, at that time additional information was requested and consequently other action on the ordinance was deferred. Since last September, 1975, the City has not been instituting shut -offs because of the lack of a legally mandated hearing process in the City ordinance. At present, 726 accounts are on the delinquent list with a total of $27,475.04 due. Of these accounts, 320 average $12.00, a total of $3,800, and will normally be paid within a few days; 313 are on the billing for a second month or more, with an average due of $32.00; however, 93 delinquent accounts, averaging $70.00 or more, equal $13,987.55 or approximately one- half of the delinquent total. A system cannot operate well with increasing delinquent accounts as the paying customer will, in the end, be burdened with increased costs, if the situation is not remedied. The recommended ordinance will enable the City to legally discontinue service. to locations with overdue accounts because of non-payment of outstanding charges. It is unlikely that many delinquent accounts will require lien action against the property if the shut-off procedures are utilized. The following process will be utilized to discontinue service and/or file a lien: 1. Final Billing - yellow billing card 2. Delinquent Notice - blue and white form generated by the computer if payment is not received in 15 days 3. Overdue Letter - form letter sent from Utility Department giving amount and 30 days for customer to pay 4. Lien Letter - form letter stating that the balance will be filed against property is sent.to the property owner S. Liens are only certifiable on May 1 for the year and must be approved by the Council as per County procedural requirements. a. Legal descriptions and owner's names are obtained by Utility Division personnel from the County Assessor's office for listing with the amount due. The discontinuance of service procedure will be initiated with Step 3 above. A notice of hearing will be mailed to those delinquent accounts to enable them to review the billing and identify any problems. The Finance Director or his designee on the stated hearing date will prepare written notification of the hearing decision and notify the concerned individual directly or by mail within 5 days prior to any shut-off activity. lime IR, 1976 P;1g.v Z The final Collection process involving the lien procedure covers a mininuun of two and one-half months with the poss.ihility of one year because of the once ye;irly filing date. in addition, the sale of any property terminates any chance of the City collecting the amount due because no lien can be filed against the new owner for prior owner's bills. 'Ilse provision of assessing the delinquent service amount to the property and its owner is a mechanism for assessing the cost of services to property against the person realizing the profit from that property or its legal owner. if no responsill ility is placed on the property oimer, the hills not paid by the ourner or renter could substantially increase the costs of water service to all cus- tomers. In lowa City a high percentage of renters pay directly for their water service thus necessitating a tighter control mechanism to insure the utility system docs not have to bear the cost of potentially high delinquent accounts. In conjunction with this ordinance change we are implementing a computer "responsible party identification and notification" procedure. This procedure will serve as a parallel notification system. Through this mechanism, a property owner irny have his name and address listed in the City computer files in.addition to the designated payer or tenant at the time service is initiated.. Since the owner of the property, as designated in our ordinance, is ultimately responsible for any utility bills incurred against the property, this mechanism would allow the property owner to receive a duplicate copy of any delinquent notice sent to the property occupant. In addition, the responsible owner would receive a copy of the overdue letter, and hopefully would assist the City in correcting the delinquent water/sewer situation. This system is viewed as an optional system for the courtesy of property owners, and it would be exercised only through the owner's notification of the Utility ili.vision of thei.r desire to be notified of all delinquent utility accounts. CW of Iowa city 0 MEMORANDUM DATE: June 18, 1976 TO: City Council FROM: City Dtanager RE: Qualifications of Appraisers In accordance with the attached memorand:nn, the staff will seek appraisers who retain both the NIAI and the SREA designations and as second preference at least one of the certificates. This matter is brought to your attention because at this time the staff is not aware of any appraiser in Iowa City Folding either a NIAI or SPE A certi- Eication. If you have any questions, please contact me. CW of lows city 1uv� mEMORANDUM DATE: June 17, 1976 TO: Neal Berlin, City Manager Dennis Kraft, Director, Department of C nity Development FROM: Paul Glaves, Redevelopment Specialist RE: New Appraisals 1) I have been considering our needs to ol,tain new appraisals prior to marketing cthe arelin thew sowned by election ofeLPA. It appraisershas o carryeoubvious that we mmust exercise out this Work. 2) IVe will soon be in a situation where different parcels of land will be in different ownership --some LPA owned and some City owned. The LPA land must be appraised according to the fair re -rise concept in Title 1, Section 110 (c)(4) of the Housing Act of 1949, and as spelled out in the Urban Renewal handbook. At the same time, these restrictions will only partially apply to the City owned land. The City Council may wish to attach additional restrictions to some parcels and not to others. The same approach cannot be applied to all of the parcels. Therefore, we need to insure that we retain appraisers who are extremely well qualified and capable of reflecting these many subtle distinctions in their valuations. 111cre is a strong likelihood that some of the land will be marketetd on a "fixed price basis. When land is so marketed, thereis cis settoochighe for the market to verify our appraisals. I£ value (price) we won't attract proposals. If value (price) is set too low, we lose land sales revenues. Liven where "minimum price" marketing is used, we will not attract investors if the minimum is set too high. Therefore, we need to take a careful look at who we retain. 4) A'e are in a difficult position in attempting to judge appraisers' qualifications. There is a degree of self certification within the profession, however, and we should take advantage of it. Two separate organizations provide credentialization of appraisers which is relevant to our needs. The American institute of Real Estate Appraisers and The Society of Real Estate Appraisers both provide designations which indicate espectively. In order to use either designation, high competance, MAI or SREA r rements must be met, and tests must be passed. education and experience requi Additionally, the SREA designation must be re -certified every five years. S) Because of the complexity of our appraisal needs, s nd thetrongly need for dathat ssurance that our appraisals are of high quality, retain only appraisers who hold MAI or SREA designations, and preferably those Who hold both. PG/SSW UZ� i., TO: City Counci] FROM: City PLanageV/� RE: As Listed l.. Budget Revisions DATE: June 18, 1976 It is expected that next week the City will receive the final decision from the State Appeals Board. At that time the City can make a determination as to whether or not it wishes to appeal with a rehearing before the entire Board. In any case, there is no urgency to revise the budget. The bud et approp ately should be revised upon completion of union negotiations, rri- year-end balances and confirmation of amounts eceipt ofof additional revenue sources. Therefore, it is not expected that the Council will it asked revenue amend the FY 77 budget until sometime in September, at the earliest. In the interim, administrative action will be taken to ensure that the levelof spending by departments will be maintained at a level consistent with the $300,000 reduction. 2. Grocery Store Towncrest Area Until recently there has been a large grocery store on Muscatine Avenue in the Towncrest area. With the demise of the Giant store at that location Istthe a is no grocery store in the neighborhood except for a Seven Eleven on The aStore onrest olst Aventiestores are the Randall Store in the Mall and the Hy -Vee At the time the City originally considered construction of senior citizen housing on American Legion Road, the location of the Giant store was extremely afor ttractive. Now that the store is no longer there, it will be very difficult senior staffto begin lwo king with ethe nChamber of Cortly shop for mnerceland other groupsdinte hthe into businesssin thatene ghborhood. Inwould hopee heeCouncilmembers owoeunitde ouldr support this effort and discuss this need with developers, real estate interests, and other parties so that the Giant store could soon be reoccupied. TO: FROM: RE • • CITY OF IOWA CITY DEPARTMENT OF PUBLIC WORKS MEMORANDUM DATE: Neal Berlin City Council Richard J. Plastino Meeting with Residents of East Court Street between Summit and Muscatine June 11. 197 The meeting was held June 9, 1976 in the Longfellow School Library to discuss the problems associated with Court Street. Jim Brachtel, the City Traffic Engineer, and I attended for the City. At the onset of the meeting I stated that the purpose of the meeting was to transfer information between the City and the residents and see if any practical solutions were available. The City presented information related to traffic volumes, traffic accidents, traffic speeds, pedestrian considerations and discussion of the traffic island. 1 We pointed out that the traffic count on Court Street was about 2,700 vehicles per day. It was stated that the City Council would have to consider that if Court Street was closed, as the residents requested, that equitably the Council would then have to seriously consider other street closures in residential areas with volumes equal to or greater than 2,700. Several locations were pointed out where this occurs. Accident statistics and diagrams were presented for 1973, 1974 and 1975. There was no pattern in the section of Court Street between Summit and Muscatine. It was pointed out that these were reported accidents and that additional accidents may have occured. Traffic speeds were averaging 30 to 35 mph. This was obviously above the posted speed limit of 25mph The only way to control this speeding would be with heavy radar control. Studies were handed out which proved that drivers move at a speed which feels appropriate to the driver and speed limit signs have no effect on the travel speed. They are simply an enforcement tool. Written documentation was handed out concerning speed bumps. The documentation proved that opeed bumps are not effective in speed control. Another study which investigated using stop signs for speed control proved that stop signs are ineffective for this purpose. page 2. . MEMO: Mtg. w/Re-Oents-E. Court St. This particular report showed that average speeds were lower without stop signs than with stop signs. A rather dated pedestrian study was presented. Generally, the volumes are low enough on the street that pedestrian crossing is no problem except for the exceptional individual, such as the handicapped or very elderly. A memo was handed out concerning the island in Court Street. It was stated that Public Works had initially had not commented strongly on the island; however, the disadvantages became apparent after some thought and Public works had encouraged Council not to consider the island. A general discussion then ensued. Options that were brought up by the residents included: closing the street, returning parking to both sides of the street, blocking off one half of the street at either the east end or the west end, asking for massive police enforcement, the island, burn the asphalt off the street and return it to a brick street, remove truck traffic, put up sign disallowing right -turn -at -red on Bur- lington and Summit, flashing yellow lights at the crosswalk, and stop signs at Oakland, Clark and Grant. We tried to give our reaction to these various alternatives. The neighbors wanted to know how Public Works felt about each of these options and what recommnedations we would give to Council. In general, I stated that the least objectionable of these suggestions that would work was the option of Putting parking back on the street. At the end of the meeting the conclusion was that the residents would meet among themselves and decide which option would be their choice. They will then approach the City Council with a formal request for action. At that time, Public works would investigate all the pros and cons of that option and Present a report to Council. RJP:bz cc: Jim Brachtel Joseph A. Patrick Abbie Stolfus TO: FROM: RE: CITY OF IOWA CITY DEPARTMENT OF PUBLIC WORKS MEMORANDUM Neal Berlin City Council Richard J. Plastino 14 DATE: June 11 1976 Attached is a list of streets in need of slabjacking. Priorities will be established by the City Engineer and other streets may be added as the job progresses. Alpine - 3128 Arbor Street - at bridge Arizona - 2229, 2225, 2220 Ash Street - 1413 Bradford Street - 2610 Brookside Drive - 614 and @ Eastwood Broadway Avenue Brookwood Drive Buresh Avenue - 1416, 1417 California - 2224 College Street - Just west of Morningside Court Street - 3201 6 from Washington St. Place west to First Avenue Dartmouth - 150, 205, 222, 159 Dodge - 903 South and Bridge over tracks Dover - 1113, 1109 "F" Street - 1721 Franklin - 1318, 1317, 1324, 1426 Friendship - 3217, 3108, 3200 Block Fourth Avenue - 926 Glendale Court - 2 Grove - Beldon to Ferson Highland Avenue - 1223, :liehland Court - 1205 Hollywood Blvd. - 2110, Jc::iper - 734 Keswick - 783 1217, 734 2116, 2200 Blk, Miami to Union Road r page 2. . MEMO: Streets/ JWJacking Laurel - 1432 Linden Road - 2750 Magowan - 217 Melrose Avenue - West of Church on south side Miami Drive - 2302, 2313, 2410, & SW corner @ Arizona Mormon Trek - across from Mark IV Mt. Vernon - 4 Mullen Avenue & River Street and 100 ft. East Myrtle - hill off of Riverside Drive Nevada - 2208, 2207, 2202, 2215 Normandy Drive - 613, 832 Oakcrest - 800 block Oaklawn - 1417 Olive Street - Middle of block Pine - 1301 and @ Spruce Plum - 1516, 1528, 1439, 1435, 1416 Post Road - 120 Prentiss - @ Ralston Creek culvert by Linn Street Raven Street - 3117, 3112, 3001 Ridge Road - 500 block Rochester Court - 2040, 2016 Shamrock - 3216 @ bridge Spruce - 1105, & intersection w/Pine Stanford Tower Court - from George down, 1025 Union Road - 1921, 2008, 2012, 2013, 2027, & intersection w/California Village Green @ Brighton Green Wade - by gas station Walnut - 724 Wayne - 3020 Western Road - 2113, 2101, (NW corner) Westminster - 217, 175, 204 Whiting - 501 Williams - by Drug Fair 2025, 1917, 1904 @ California 0 • CITY OF IOWA CITY • DEPARTMENT OF PUBLIC WORKS M E M O R A N D U M DATE: TO. Mary Neuhauser Neal Berlin FROM: Richard J. Plastino RE: Item n3 in Letter of Ma 11, 1976 to Mayor Mary Neuhauser from Robert L. Humphrey of the Iowa Department of Transportation Item n3 reads as follows: M12 June 10, 1976 As mentioned at our meeting yesterday, we have discussed with the Johnson County Board, their request to leave open the Coralville cutoff road rather than relocate it as shown in the Draft Environmental Statement as well as their concerns regarding the sewer connection for the Johnson County home. These will be discussed again with the Johnson County Board of Supervisors, but a position relative to either of these par- ticular areas would also be appreciated. More specifically, if necessary, would it be possible to connect the Johnson County Home to the Iowa City sewer system? The Engineering Department has taken a brief look at this and we find the best way to connect the Johnson is to run south from County Home the County Home and then east down a ravine and tie-in to an existing 10 inch sewer pipe, which runs south of Mark. IV Apartments. The line would be 8,200 feet long, We have used a preliminary cost estimate of $10 per lineal foot; therefore, construction costs would be approximately $82,000. There would be additional costs for right-of-way and engineering costs. Our preliminary review indicates the downstream sewer system can adequately handle the flows of the entire area that could tie -on to this new sewerline. Presently, the City Council has a policy that no party outside the City Limits may hook -on to the Iowa City Sanitary Sewer System. Since it is technically possible to sewer the County Home, the larger question for Council will be whether this policy will be violated for the County Home and all other properties between the City Limits and the County Home. WILL J. HAYEK JOHN W. HAYEK C. PETER HAYEK • HAYEK. HAYEK & HAYEK ATTORNEYS AT LAW 110 EAST WASHINGTON STREET IOWA CITY. IOWA 52240 The Ilonorable i\'layor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 Ret Legal Department 0 101A AREA CODE 319 337-9606 June 10, 1976 I L Fr JUN 1 11976 .A OrE STOLFL _ CITY CLERIC Mayor and Council Members: k of your leg The following is a six-month report r . January, several casesl department. Since my last report to y have been disposed of by the legal department. They are as follows: 1. BVI v. City - damage case which has been settled. 2. Aaron Braverman v. City - condemnation appeal which has been settled. 3. Kent Braverman v. City - condemnation appeal which has been settled. 4. Nall Motors, et al. V. City - case resolved in Eighth Circuit Court of Appeals in St. Louis. 5. Simmons v. City and Rock Island - settled. 6. City v. .John Nolan - parking ticket case disposed of in Iowa Supreme Court. 7. Lovelace, et al. v. City - Board of Adjustment case decided in District Court. fl. William White Boulevard cases - actually nine cases, settled. 9. Penny Bryn v. City - damages case settled. 10. Eastham V. City - disposed of by trial, no appeal anticipated. • The honorable 114ayor and City Council of Iowa City - 2 _ June 10, 1976 11. Sullivan v. Berlin - mandamus action, dismissed. Attached to this report is a current listing of pending litigation. I am very pleased with the large number of cases which have been disposed of during the first six months of this year. This number of dis- positions is up substantially from the same period of last year and even more substantially from the same period in 1974. I would like to request that the Cit compensation as y Council consider adjusting my City Attorney effective July 1, 1976. When I began work for the City of Iowa City as special counsel for urban renewal in August of 1970, my compensation was set at the rate of $25. 00 per hour. I have received one raise since that time which occurred in January of 1975. At that time my compensation was increased to $30.00 an hour for all legal work except litigation and $35. 00 an hour for litigation. I believe a further increase is warranted at this point. It is interesting to note, for example, that since I began to work for the City in the summer of 1970, there has been an increase in the consumer price index for the Cedar Rapids metropolitan area in excess of 42%. Included in the budget for the legal department for fiscal year 1977 beginning this July 1 compensation for the City Attorney is budgeted at $35. 00 an hour for all legal work except litigation and $40. 00 an hour for litigation. I request that the City Council authorize payment at that level commencing July 1. In January of this year interest was expressed by members of the City Council in having a work session of the City Council to discuss priorities of the legal department. Such a meeting would certainly be appropriate. I would be happy to answer any questions that any Council members have concerning any of the items mentioned in this report including any of our pending cases either at a Council meeting or individually whichever is more convenient. Respectfully submitted, 4 Joh W. Hayek JWH:vb:12 Enclosure lA I': - _f,-..10.- is tr • • CAS,'--- CAPTION AND SU; MEC"f ~tarp V. City & Korshoj Cons. co. (damage suit) 011Clu11^s City v. Venstra R Ki I;jor,c;en 1"V. Co, v. City -- (C-ttract suit) VIO—Ihnrn V. City --- ----~ ((':)ndell ur�;.inti appeal, P:u-ccl 65 - 1:1,) St0o,C V. CiLy (cnndentnalion appeal, P:w(,cl 63-t3) ( ity V. I r;.en rl/U/a Vino 'fav (con(1cnura+ion appca, Parcel 34-1,J) `tali, hie — . City (cnrnlenuio' ism appeal, P::rcel 34-6j 1(at bur.gcr, (n(-. V. ('iLy ^� (cnndernna'itoil appeal, `nr. v. CiLy--- — Ly yJU i i 11976 OLFUS �fi__-_�-10`76 ISE � ) A- IONN • PAG F 2 _ . C-�St= CAPTION ca W z �_ AND ILl o � ¢Lu o° Qr� COMMENTS Qti1MCNTSf STATUS SUBJECT � s o m o w o ¢ 0 ° cc S o� CL I,iWe Caesars v, City �= I)ist. (condemnation appeal, II II .J. W. H. Kraft I_ l' :•cel 84-13) .1 - • sQns, inc. V. City (,-,.ndenination appeal, ---- Dist, _ —IICt. 'L'rial set for .June 21, 1976, IICt. J. W. II. Kraft I'orccl 84-7) _II^ \nnox, Inc, V. City (condemnation appeal, - Dist. Ct. � _ Trial set for July 26, 1976. I .J. W. If. Kraft P,ircrl 31-12) Kinney V. City (, c,ndcmnation-1pPea1, IICt. Dist. J. W. if. Kraft P3CCCI 114-12) I IICt, Dist, J. W. II. Kraft Trial May 24, 1976. Appeal possible. '— c,chill, ct al. v. City appeal, Parcel 04-8) J -(condemnation Farris v, City (condemnation appeal, Dist. Ct. Crial set for April 12, 1976. Parcel ,4-13) II /22/7.1 Dist. J. W. H. Kraft Continued for Eastham. - - Victor Ind, V. City - I Ct. 13.13. Trial Alay 19, 1976, -(assessmentnt�ppeal) Dist. Ylastino Awaiting ruling. :\ngclsburg V. City -i/28/74 �a•-s Crial July 29, 1976. ssment : ppcal) IICt II 13. 13. PlasLino L-- I_ I•:u•.us v. (.>.tY - - -- -- - 'Crim .July 29, 1976. A II 13.13. Plnstino I I _ 6-10 76 _ ION7. I„ CASA CA�'TION _ J } - �� Iii AND ��� cc z �� �- SU�J�C � 0 5 0= r o d�� �— o Q � h clow _o • -II beet V.cityU f)cUJ Q U OL - (assessment appeal) Ili 28/74 Dist. _ —IICt. 13, R, f�ocsl�oj Const. C� o, II Plastino (digester . v. City /17/71 suit) U. S. I ____ Dist. — ICt, Plastino yRock island R.R. v, II title -S, City 10/10/ Dis2,— I Market Square) I� 74 -- ICt, I R. 13. Kraft \n ------------- 01-ex V. city - II (damages :;uit) 10/15 Dist. � 1 1-t• I. W - 11/12 V. I f. I<raCt ;;bort v. Cit. I II II I • -j y 11 / 12 - (disrrim, clan- �=5 yi�U. S. 74 Dist, Baker c _-_1Ct. -- I C; ty — (Denver boot case) II2/ r/75IIDist. Ct. J. \V• If - 11 I<raft T. K Trial July 20� 1� g Trial this fall. Crial this fall• �� Il c cion District Court de Strabala decision appealed to Iowa Supreme Court, Miller Plastino 1 pstein II Trial date req -4e Trial set July 12, 1976. I (civil set vice case) Dist. - II Ct. �I City I (accca fc dPaina e g, snit) r5 Il )ist. -- II Lt, T. I<. — ( d•vn:1gcs ':ise, 7/ l 75 police) Ct, J. AV. If. Trial July 20� 1� g Trial this fall. Crial this fall• �� Il c cion District Court de Strabala decision appealed to Iowa Supreme Court, Miller Plastino 1 pstein II Trial date req -4e Trial set July 12, 1976. PEI\fnaiv� ;�� L.I I IGAT ICON -- Q u a cc -; CASE CAPTION UL LL ti O O� o Q O SUBJECT II1city V. 1%psteins' cn O W 0 0- (rcpt collection) y1i„i•t v. City �- —�I (cundcn,natlon appeal) Strabala I �jO S S_ y, -- City - (U. [I. condemnation) Ct. «—I- gland v City (assessment I<raf t appeal) _---- I�Ct. I City v. EpsteinI �- Bookstore (evi(tion Kraft actis on) PEI\fnaiv� ;�� L.I I IGAT ICON -- Q u a J z q � p OC UL LL ti O O� o Q O W cc ¢ cn O W 0 0- /18/75 Dist. Ct. ,T. lv H. Strabala I /18/75 llist. Ct. I R. W. J. I<raf t Dist. �-----_ _---- I�Ct. I 6v R. . J. Kraft Dist. � I Ct. Dist. II Ct. I B. B. .T. W. li' II Plastino Berlin PAGES COMMENTS/STATUS Trial date re quested, ATTOi1NEY5 AT LAW 110 CAST WASHINGTON o TAEZT IOWA CITY. IOWA LZ240 Julie 10, 1970 o'rr City Board of Review cir. Victor Belger :::::� .-�ssessor• . ohr.z;on County Courthouse Iowa City, iowa 52340 .e: 0a,moil l�eiire.hent Residence 6 en;.:en 1 B n: r� U AREA CODE 31M 337.8606 1 1 Fjulil, 1 l5'6 ABBIESTOL;=U_ CITY CLERK, ra your Inecting la i wce;c you re<uestcd an opinion from the ., ..c:oi ney's office concerning '.tie advisability of denying the ap- -.>.iC: on of C:n•lstlan Retirement Services, Inc. , for an exemption f: on, Drape ., -Ly taxes for their Oaknoll Retirement Residence located lov;a City. Since that meeting Mr. Joe Holland of my office and .:favi: twor Kec. on tnls mater an:: nave at.empted to gather as much i nfo,•:nation as we could concerning the Oaknoll Retirement Residence t?.e snort period of time available. In this connection we have had .:.e i li cooperation of the applicant's attorney, Mr. Robert Downer. As you know, the Oaknoll Retirement Residence has been ete::nined to be exempt from taxation under the provisions of Chapter 37 of the Code of Iowa for several years. You have asked us to review - -.nis exemption in light of several recent court decisions concerning the axato:: of real property. First of all, it must be said that the question of determining or not a facility such as the Oaknoll Retirement Residence is sab,eet to taxation is a difficult one and c;epends upon the particular :r,cL, and circumstances of" each case. Rarely are any two `facilities axa< .fy the same and the task of determining taxability involves a care- ...aiysis of financial, legal, and simi-.ar records as well as a thorough of the history of the facility and i -,s actual operation. The views zxp: ssed in this report are based upon what information we could ob- .ain in the time allowed. Lim C� ge Two • As you know, the Code of Iowa in § 427, 1(!)) exempts from i,r(4erty taxation property used for ci:aritable, benevolent, and rclibious institutions in societies solely for their appropriate objects a•.c: not leased or otherwise used for profit. The question of the tax- z—On of care facilities, nursing homes, retirement homes, and the e has come before the Iowa Supreme Court in several recent cases, is Chiding the following: Dow City Senior Citizens I-Iousing, Inc. V. i_.oaz d of Review of Crawford Count .y, 230 N. W. 2d 497 (Iowa 1975); .%::angelical Lutheran Gooc] Samaritan Society v. Board of Review of Das Moines, 300 V, \V. 21 50g (Iowa 1972); and South Iowa liethodist homes v. Board of Review of Des Moines, 173 N. \V. 2d 526 (Iowa 1970). I am enclosing a copy of Mr.Holland's memorandum to me dated June 1976, in which he reviews these cases and compares the holdings fl:orein to the Oaknoll situation. There is no question but that the Oalmoll Retirement Residence p:•ovides a substantial service to its residents and to the community at large. however, I do not believe that that is determinative of the ia:- status of the facility. I believe that it ais significant that although pmth ;>roxiateiy 20% of e residents of the facility receive some type o: a discount upon financial charges made by Oaknoll apparently the ot:,er 80is do not and pay full fees for services received. An analysis cf chc facility is made more difficult by the lack of any written ad- missions policy. I note that Oalmoll's financial report of June 30, 19: 3, shows substantial assets, in excess of $2, 000, 000. It is my understanding that over the years of the operation of the residence enc:Owment income has been used to build up the net worth of the corporation. There are certainly several factors which point towards tax exemption. These would include the relatively large infirmary facility which operates normally at a loss and several other factors. It is clear that statutes exempting property from taxation are to be strictly construed and that if there is any doubt upon the question it is resolved against the exemption and in favor of taxation. Further, file burden is upon one claiming exemption to show that the property (alis within the exemption statute. It is interesting to note that there a; -)pears to be a trend in Iowa and nation-wide to curb and restrict the type of exemption claimed here. In my opinion, a considerable question exists concerning the applicant's exemption. I believe that there is a 0 Pabc Three 0 oetter than even chance that the courts would strike down the exemption, in oi.her words, that the courts would uphold the Board of Review in the event that you deny the application for exemption. I believe that a court determination of this matter would be appropriate. In the event that the Oaknoll Retirement Residence is determined to be subject to property taxation there is provision in the law for prop- erty tax relief for low income persons living there. This certainly would help to reduce the impact of any such decision upon the low income resi- den-s of the facility. Respectfully submitted, Joh W. Hayek X,ViI:wld cc: City Council Enclosure oLE MEMORANDUM � JUN 1 1 1976 D 1p3o ABBIE STOLFUS TO: John CITY CLERK :"ROM: Joe DATE: June 9, 1976 i;.E: Property Tax Status of Oaknoll Retirement Residence PACTS Oaknoll Retirement Residence is presently exempted from real and personal property taxes. This exemption is presently being reviewed by the Board of Review of Iowa City. Oaknoll is operated by Christian Retirement Services, Inc., ..n Iowa non-profit corporation. Oaknoll consists of 112 housing units occupied by 167 residents. Twenty-five of the 112 units are occupied oy persons either receiving financial assistance or who will, in the contemplation of the Oaknoll administrators, be receiving financial assistance in the future. This financial assistance is apparently in Lie nature of a discount upon the charges which Oaknoll would make against these residents. The criteria for determining which residents fall into this class, approximately 20010 of the Oaknoll population, is as follows: The income of the individual occupying the unit is $4, 500. 00 or less per year, or in the case of a couple, $6, 000. 00 a year or less and/or the residents of the unit have a net worth of $20, 000. 00 or less. In terms of the actual profile of the residents who are classed as re- ceiving or in need of financial assistance I have the following breakdown -2_ s from ,l'Ir. Hobert Dov:ner. The average monthly i cistinction betwncome, without een couples and individuals, is 5265. 00 per month with a range from a low of $66, 25 per nionth to a high of $540. 00 per month. The average net worth for these persons is $13, 700. 00, with a range from a low of $0 to a high of $30, 000. 00. There is no readily accessible data as to the financial condition of the remaining 80'yv of the population of Oaknoll. It would seem. However, hat this 8076 of the population is above the minimum income figures given above. Residents at Oaknoll are required to pay a room endowment fee when they are admitted to residence. It is unclear whether this is re- uired of all residents or only residents in that 80% which are not within aqye financially assisted group. meeting of the Board of Review, (In contrast to what we were told at the apparently this endowment fee is Partially refundable on somewhat of a pro rata basis. See page 6 note 1 of the 1975 Financial Statement. ) Furthermore, Oalmoll operates an infirmary of 32 beds licensed for skilled nursing care and 16 beds licensed for intermediate care. Voierans Administration, Medicare patients, and Medicaid patients are treated in this infirmary. This infirmary apparently has a sustained pattern of losses, which are made up by federal subsidy. (This is ac- cording to information received from the Board of Review. ) There is no breakdown in the financial report for 1975 as to the finances underlying 0 operation of the infirmary. According to the 1975 financial statement, page 3, Oa,moll Operated at a net loss of $36, 348. 00 for the year ending June 30, 1975. QUESTIONS PRESENTED Whether Oaknoll Retirement Residence is entitled to a charitable or benevolent exemption from real and personal property taxes under Ch. 427. 1(0) of the Code of Iowa (1075). CONC LUSI ONS The lack of written guidelines as to eligibility for admission to residence at Oaknoll and the lack of readily accessible data on the 80%, of the Oaknoll population thought not to be entitled to financial assistance :cake any conclusion highly speculative. However, the Board would certainly be on solid ground if they determine to tax Oaknoll, for the burden is upon the party seeking the exemption to come forward and Prove that they are entitled to the exemption. DISCUSSION The determination of whether an institution is entitled to a property Lax exemption is a highly individualistic determination. However, the lova Supreme Court has in recent decisions indicated what are factors LO be taken into consideration in reaching a determination. Two factors involved in the Oaknoll situation which are unimportant are: 1) that Christian Retirement Services, Inc. is a non-profit corporation and 2) - 4 - that Oaknoll meets a real community need for senior citizen housing and care. See, Dow City Senior Citizens Housing Inc. v. Board of Review o- Crawford County, 230 N. W. 2d 497, 499 (Iowa 1975). (Exemption denied). In Dow City important factors in denying exemption were that no care was provided to residents of the housing project, no housing was made available to persons unable to pay the monthly rental charges and no rental concessions were made on the basis of need. Obviously the Oalmoll situation is somewhat removed from this as care is provided and at least minimal concessions are made to need in computing monthly rental charges for some 20°Jc of Oaknoll's population. In Evangelical Lutheran Good Samaritan Society the Board of Review of Des Moines, 200 N. W. 2d 509 (Iowa 1972) the Court stated that the question of exemption from property taxes was controlled by the use made of the property rather than the declarations made in the Articles of Incorporation. The Court went on to state "There is no evidence Plaintiff ever cared for anyone as a matter of charity or benevolence. On the contrary the record discloses as to each it had assurance of payment by a public agency plus a guarantor. There is no evidence it operated as a religious institution. Plaintiff's claim of using its property solely for charitable and benevolent objects is not estab- lis;�ed by the evidence. " 200 N. W. 2d at 511. The Oaknoll situation somewhat parallels this in that, as far as we Imow, the 800/0 of the pop- ulation which is not considered in need of financial assistance is not a 0 -5- 0 prima facie benevolent or a charitable undertaking on the part of Christian Reiirement Services Inc. In the passage quoted above would seem to suggest that if an institution is to receive a charitable exemption the insti- tution must be devoted solely to that purpose. If, in fact, Oaknoll is devoting only 200/c of its residential space to charitable and benevolent purposes, that institution would not appear to be entitled to a total charitable exemption. The leading decision in which the Iowa Supreme Court found an institution entitled to a charitable exemption is South Iowa Methodist ilo:nes v. Board of Review of Des Xloincs, 173 N. W. 2d 526 (Iowa 1970). That case presents a sharp contrast to the situation at Oalmoll. There it clearly appeared on the record that no application for residents ever haci been turned down for financial reasons, a situation suggested but no; verified in the case of Oaknoll. More importantly, South Iowa Methodist Homes had a policy of admitting a minimum of 10% of the Wesely Acre residents without a room gift, the equivalent of the room endowment required at Oaknoll. South Iowa ,Methodist Homes in fact suostantially exceeded this minimum 101/c. This is another point upon which further information from Mr. Downer would be in order, that is whether this room endowment fee is ever waived, either partially or totally. Also in South Iowa Methodist Homes the monthly fees of those ut;able to pay those fees were subsidized out of the prepaid care and ■ 0 -6- •oom gift contributions of deceased members and residents were maintained in the home even after their net worth had been exhausted and they were unable to pay the monthly charges. However, in striking similarity to Oaknoll 96 out of 127 residents at Wesely Acres were paying the full monthly charges. however, in South Iowa Methodist Homes a number of other factors counterbalanced the fact that a majority of the residents were paying the full monthly charges. In summary, the question of whether Oaknoll Retirement residence is entitled to tat exempt status would seem to turn upon the :financial criteria used to select residents and what percentage of residents must be admitted on a need basis before the purpose of tine institution becomes charitable and/or benevolent. The Board of Review should also be made aware that should they determine to tax Oaknoll any increase in cost to the residents should :all most heavily upon the higher income residents. Under 55 425. 16- -30 of the Iowa Code (1975) persons over 65 with incomes below $8, 000 per year are eligible for reimbursement from the state of a percentage of the amount of their rent attributable to property taxes. See Iowa Code (197 5) 55 425. 17(5), (6); 425. 23 PARTM&TAL CORRESPOND&CE -� DATE June 17 1976 Sono „ Artic foxes and skunks formerly at Iowa City Zoo, now at Davenport Zoo rt, __Nvni Berlin _ DEP•r__ City Manager FRAM Dennis Showalter DEFT Parks 6 Recreation _ I talked today to Dick Slattery, Director of Parks and Recreation for Davenport about the physical facilities for the artic foxes and skunks, which were formerly at our zoo. They are building permanent facilities for these animals at the present time. He said he informed the Iowa City group that the animals were in temporary facilities, and would be moved to much better facilities in the near future. The Iowa City group went to the Scott County Humane Society to try to get the Davenport Zoo closed. Subsequent investigations by the Humane Society have resulted in a "clean bill of health" for the zoo by that group. The leopards which are on loan, will. be picked up by the Bloomington, Ill. zoo next week. They will buy our c,)ckateel, and pick it up at the same time. That will leave only the prairie dogs - which were scheduled to go to Davenport - and, of course, they no longer want them. We are in the process of trying to find a place with proper physical facilities for the prairie dogs. DATE: .June 15, 1976 f TO: Veal lierlin, Cit)- Almager FROM: I,;t Strah:;l:r RE: icrRecycling Director, 14parimi�nt of Finance , -4/- fff % l j Ncwsp;gRccyc l i n1; Program I The rai laming is a snnuliary Of, the I inancial results of the newsprint recycling program for .lung, 1976 (bi-monthly 1 pickup). /J NIi19.SPRINI' RIiCYCLIPIG 1'R(X1RM1 June, 1970 Surplus/Deficit ( ) goginning, $(8,764.13) RI iCE 1 P1:S 57.3 tons X 4D% of ,$4n.oO per top ($16,nff) $ 916.81 1API :NI)I't1IRI S I.rbor -- $ 538.8(1 liyuipment 254.48 —_— S 793.28 Surplus/Ileficit ( ) 15rding S(8,640.60) cc: Dick Plastino .Julie Zelenka • Minutes of Staff Meeting June 9, 1976 The Council agenda of June 8 was disco,sed to other departments: • The following items were referred The funds for the Johnson County Council on Aging during FY 76 were approved by the Council. A check request will be sent to the Finance Department authorizing the transfer. Director of. Community Development will report to the Council the require- ments of the contract with Stanley Consultants as the contract relates to the Riverfront Commission's request for an additional $2,000. The Legal Department will review Village Green Plat. This item was deferred and will appear on the June 22 agenda. A letter will be drafted to the Planning and Zoning Commission relating to the Storm Water Management Ordinance. The Commission should make builders and contractors aware of the proposed ordinance and evaluate each request in accordance with the storm water problem. As matters are in turn sent to Council Planning and Zoning should note how plans relate to Storm Water Management. The University proposal for sewer charges was discussed. As of August 1, the City will bill with the new rates. The Director of Parks and Recreation will arrange a neighborhood meeting in the Mark IV area to discuss the problems existing there and why recrea- tion programs have not been successful in this area. Horace Mann School made recommendations to the Council for the purchase of playground equipment. The Director of Parks and Recreation will discuss with the Finance Director how this project will be financed and accomplished quickly. The construction on South Riverside Drive was approved. Public Works will send budget amendment to the Finance Department. X033; Director of Parks and Recreation was informed to notify Councilman Vevera of the status of the animals in City Park Zoo. The Manager will prepare a letter to the Committee on Community Needs requesting additional information on their concept of a neighborhood center. The bond issues were discussed. The Legal Department will issue ut opinion regarding the legality and the desirability of placing utility lines underground at Highway 6 Bypass and Industrial Park Road. t Director of Public {Yorks will determine if Ralston Creek Project can be accelerated. The leases for police cars were approved. Efforts.will be initiated this summer to update the Administration Manual A Year ago a policy manual was developed but abandoned by non-use. This manual will deal with internal procedures and be able to interpret them when citizens call or as an orientation for new employees. The format will be standardized for all departments to follow. The Director of Hunan Relations discussed collective bargaining. • EAST E R .V 1 O VV A L• GI-- T A NO P O \A/ E F7 C (3 0 PI E VI A i WILTON, IOWA C2778 1310) 732-2211 June 9, 1976 Mayor Mary Newhauser Iowa City, Iowa 52240 Dear Mayor Newhauser: Pre,rivrn JUN 1 1 158 You and your council may have received from ISPIRG (Iowa Student Public Interest Research croup) a resolution opposing construction of a new Lock and Dam 26 on the Mississippi River at Alton, I1.L. Your council may have been asked by ISPIRG to adopt the resolution. This is to ask your consideration of the serious economic consequences to your community should the Corps of Engineers be prevented from constructing this facility. Agriculture and agriculturally -oriented business and industries are without doubt the backbone of eastern Iowa's economy. We sincerely believe t:1111: 1ny supt.nrt of. a proponll. to hamper or halt: the n rrlerJy flow or ngriculturll. produr:tn 111,1 ngr:icultural. uuppl.ies on the Minsinnippi would be detrimental to the bent interests ot, your community and the state of Iowa. There is no question that the pre.^sent Lock and Dam 26 is deterioratinq. Crit- ically positioned just below the confluence of the Mississippi and Illinois Rivers, failure of this facility would (1) cause severe financial. loss to farmers through inability to move grains to market at proper times (2) restrict the supply of fertilizer and petroleum products to the area (3) create business loss and resultant loss of employment in the many agri,:ulturally-related businesses (4) increase freight costs of grain and supplies, reducing farm income and increasing prices to consumers (5) in- crease fuel costs to utilities and power costs to those they serve. The impact of power shortages if the 12 power plants on the Mississippi cannot obtain coal would drasticallyaffect the 5 million persons they serve, urban and rural. In 1974, these plants generated ,ll per cent of their electricity from 5,130,000 tons of riverborn,: coal. Eastern Iowa RFC burns approxi.matoly 140,000 tens of coal annually at its generating station. Inability to obtain barged coal would add $800,000 per year to our fuel costs. Bills of REC consumers would go up 10 per cent, or more than $50 per year per member. This would decreas,: by $50 the funds of each member, spendable in your community. It is vital to have at Alton a lock and dam capable of fully serving the needs of all eaf)tern Iowans. Recently it was necesnary to dose the major Alton lock for repairs. Immediately, the cash price for corn at river elevators decreased 3 to 5 cents per bushel. This is lost income for your community. Prices of commodities shipped by V,cvtl(rt•n Inwn 1.1(71111v Powor opor'allve Mayor Mary aewhauser ..2_ • June 9, 15776 barye to and from eastern Iowa jumped 20 ter cent- dnri.ng the traffic jam. Prom Iowa farms, 12,0`.14,324 Cons of grain muvcd clown stream in 1975. If river transportation trucking grain to 11..w Orleans would cost: five times as much. Shipping l.y rail would he 2 1./2 times aS costly. Eastern Iowa farmers could lo:;e 20 cent:: per. bue;ht 1 (nt corn or beans moved by rail. instead of by bill -90. ,rhe nation, the Up),er Mi.dw !;t, and (.s;)teci;(lly Iowa, needs it )krlanced trap;port-at.i.on system to insut:c orderly flow of farm and industrial, products. We need a good highwav syr;tem, a Oood I-ai1. system, and a good inland waterway syst.cm. We must. nol. 1(•L any of our transportation r,y,.Lemr; deteriorate and become inoperable, sins.- alternate systems cannot absorb the volmne. Deliveries will suffer and the ecuuorry •.:i 11 erode. we believe those who Conclude thnL Lock and Dam 2fi is Step One to.a future ]2 -!trot ch.innel. are not only mi;:informed, lint are mi.:;informing others. The Corps of F:ngin.,cr:: ::Ludy on this matt.vr, completed two years ago, recommended against it 32 -foot c),auucl. Cupie:; of thir. are available to the public. Iowa Governor Robert Ray Ila!; )tuhlicly stated his o�t)'osition to a 12 -foot- channel.. We concur. It is not needed. Hearings arc! schcdulrcl for the V•:eek of June 21 before the U. S. Senate Public Works committee. ltopefuliy, these hearings will result in proper authorization and fuu(liugs of t -he project. Construction of. Lock ;,td Dam 26 must proceed ouickl.y. On behalf of the 15,000 member -consumer:; cf Ra:;L-crn Iowa R)iC, I am -,ending this lc•t+'�r to •,•ou and to Lilo mayors: of all otl-or n•npir..ilxtliti.es, of. our 1.2. -country service lu e.i, whi. ii (nu• uu:ud �cr:; cin::i•h•t Lu be t.h�-.ir !•apes. Plco�:c weigh the.^,e sr!rirtutly a+)a1n.•;t thn uconomic health of .your cuum+unity belore you con:;ides resoluti.onn incl: as the one presented by the student or member:; of your. group (L:a�Z,G). I would certainly appr.er..iate any comments you cc,dncil may have on this matter.. Very truly yours, EASTERN IOWA LIGNT AND POWER COOPXRATZVE �il/>n4 Donald R. Norris General Manager DR11 : skk • June 7 076 35 r,r. L:�-rp Ideuhauser, 'aayor L `O 914 Ilthvrond St., Ip Y:(• City, Iowa 52240 D^ar - ;;. Ncuhauser: `tp�n 11::1.c;ning to the forum at 12:30 Sunday regnrding Urb,-n ?enevral I ern.;; impressed with your statement regarding the commercial n.rec. Of Io - z. City beinE, in dolmtown Iown City. This is what the hconle �!nnt, not highwnys nn,i noiay strseto running thru the residuLtial 1,1:,3.ch is very frustrating to say the least. I nevor ren 1.1zeci that it Doul i come to the point where peonle would have to cor oldcr movin; to the dol-tinto.nn nrr;a to live In peace, or get a n1,;Lts rr t. Thin i; ,Just the rev!rse rrom what it used to be. :7e i. uc}i. our propert�r for pencerul, quiet and undisturbed pori r.rsion. It so happens Dodge and Jefferson Street -3 are on the level. The hill Or' governor Street is What makes it bad. This street should never ;lave l%ern made a one-way street or it highway. When it first was mentioned ;!-s a one-way street, no one said a thing about a highvray runnin; thru, but two or three weeks later everything from all. over the UnItod States was trr_veling on this Street. Vlhen you thiel: of hn vy trucks, earthen, oil, etc., turd motorcycles, not mentioning other vehicles, all traveling on thi s street, it' s a wond.cr ncople r-rrnr t crr.Lzy. Many o:; the peoplr, ht.ve nervous disorder; c -used by tis frustration. I thought environment and -pollution were so ennrtitlal to good liv:'.ng, well in this onse is has nothlnr; to do vath t;.r situation, wn Just accept (Ascrimination every rivy. TiLia lies br:en going on for almost 1(, years now, and many people are lOsLng faith in our City gov-.rnment when nothing is done about a situ -,tion like this. Other cities are routing traffic around t}l,� eit<y, particttlarl;/ heavy traffic. I realise the highway comrr.isslon Is responsible for some of this, and the street had a very ;Pod grade of cement on it, now it is being cracked along curbing and ruined. One hoavy srmi Imocl'ed off the tops of water pipes, and after investigation, the tndividrral. had to pay for this dnmaEe• Is this a Just lawl I am writing you to inform you of views of many p?ople regarding t.is ty,)e of frustration, and some have suggested writing to The ihvironmental protection Agency) rind others bringing injunctions. I wish you would give this matter some consideration, as it would ;;1ve many people a more oorfident outlook on city govci-jzrnent. I re --.lite it Would met -n getting together with the Highway Corrmission. Also) the speed, at times is unbearable. Tnankint; you much, Ism, Yours very truly, 423-': • rover or St. Iowr. City, Iowa. 52240 Iowa Un, r ri;. tlnuhau•eer. 0 RECF11iFn jilt) , n we An:ioc•tatod Residence ii•cll_: 117 Ro 1 now Ila Ll June h, 1;7 Tnls lnt,t.nr Is writi.nn in reference to rovLsing the mini num hou sinr. ;I.:+idnrls code.. I speak -rit.h intontion to conv3y the students interests as Lhny rola+ e to housing iii Irn.,a City. 1--n7 times I hav,, heard it. said th•rt rental units are not. easily found in low: City. After reagin¢ the Rent&l Housing Survey (Tobgdk and Vann) I believe these complaints to bo well. foundrod. This brings me to the quesLion C qua lit,y vs. • uant.it.y. Ni Ll the. •prtnt.il.y o;• units diminiAh ,s a result of our efforts to improve Lho pvtl1,t,y? After talk'ng with Lyle Sey:el I believe that our problem of snb�tnndard housing is nol. Lruely extreme in na%ure and would therefore not rtncrenae the total number of units any sivablo amount. Therefore I do not. ,nn .t reduction -n quantity as a serious i robl.n:n. ti;/ next, cornt.nnt.lon rntne.a from t.hn id.a of qual.i.t.y and nest inernasns. ailh rnhabili.t,•it.ton and ins,oction co -,Li it snomn inevitable that. the renting; consumer would inrurn ttin extra addnc exl"nses. Two areas seem to warrant exploral.ion hefnre approval. or the revisor code::. Concerning the unaidnd tnnant., is the problem of who will pay for the ad- ded costs? Will it, be it:e tenant, landlord, st::te, federal or local gov- ernmont7 If it is the tenant, then will those citizens participating in the section A program be made to pay and thus qupprossod7 It. is my firm belief that the council sthould move in the direction of a federal, stite, or local rehabilitation suhsldi;ing program. If you could direct me I'd be nleased to look into laying down the ground work of research. If you have an,,, questions please feel free to call me at 353 1110 or 353 3113. Have a prosperous year. Sincerely, Stephen D. Lombardi, President ARH LauJuup Ikwis 353-5.210 1036 0 Mrs. Mnry �1tl fl1vhw-, Neuhnusnr „r I>,, 5P;ylrt Dear Mrs, Neuhauscr, t31 1) willow St. Intra city, in, 5aalt.o May 12, 1976 1 nm a ?_; yenr rerident of Iown city, I large you Pursue the 9inv]e-6eveloper npororch tnb- to rer,s lishing n vi.t.n] dc,wntnwn nrer•. Phe community other n 1" eenough Lhn L shoppers st-uul l not have to gd to r cities to rind a vnriet.y of merchandise. More- over, we deserve better than n hedge-podge array of ernekerboxes trying t:o pass Cor modern central business district. Finally, nny delny which permits nl^r'c outlying. sh,)PPing nrens nvolded, Co ;,prince, uP should be 'fou+'s tr,ily, (Mra.) Pintalie F. E'eldt 0 RECEI18D JUN 1 4 1976 CITIZENS ADVISORY COMMITTEE JUNE 11, 1976 IOWA CITY, CITY COUNCIL CIVIC CENTER IOWA CITY, IA 52240 DEAR COUNCIL MEMBERS: THE CITIZENS ADVISORY COMMITTEE FOR THE COUNTY ADMINISTRATION AND JOINT LAW ENFORCEMENT CENTER WANT TO EXPRESS OUR SINCERE APPRECIATION FOR YOUR SUPPORT AND EFFORTS ON THE RECENT BOND ELECTION. OUR COMMITTEE WAS ENCOURAGED BY THE SOLID BASE OF SUPPORT DEMONSTRATED AT THE POLLS. FAILURE OF THE ISSUE HAS NOT CAUSED THE NEEDS TO DIMINISH NOR THE PROBLEMS TO GO AWAY. WE BELIEVE THAT THROUGH OUR MUTUAL AND CONTINUED EFFORTS TO INFORM THE PUBLIC OF THESE PRESSING NEEDS AND THE MERITS OF THE COMPREHENSIVE PLANNING APPROACH, A SECOND ATTEMPT WILL BE SUCCESSFUL. CITIZENS ADVISORY COMMITTEE PAUL MC NUTT CO -CHAIRPERSON CHARLENE STEVENS CO -CHAIRPERSON /DRS � 0300 L-1 • 6e 2Zz / , , s�- 1057 26 S. CLINTON ST. • IOWA CITY. IOWA 32240 • 6e 2Zz / , , s�- 1057 FROM: We the People, Inc. Q3 SUBJECT: Fact sheet for Continuation I 1 � C nuation of single develo er 1. y U c�%.� e. P in Iowa City Reasons for single developer: 1• Single developer provides for a unified plan market analysis for proper mix of stores by 2• Single developer many operations 3. No a. b. C. d. 4. 5 6. 7 go precludes glutting of Of one type (i.e. fast that includes retail type. market with too foods) major tenant will sign a lease unless. they know where parking will be who his neighboring tenants will be what the public areas will be like Schedule for other development The single developer concept precludes lost time in: a• Preparing bid documents b• Advertising for disposal of land C. Staff, council and public review of proposals received d- The 30 day public notice requirement before execution Of contract Single developer concept a right a way improvements.ssist City in planning of public Single developer concept precludes the possibility of the City having land which it can't sell. The possibility of the City not being able value always existto sell land for its re -use s under the multi -developer approach. Single developer concept allows the possibility of the City providing parking without removing valuable property from the tax rolls. Parking requirements determined by the volushould be me of commercial, retail, office and leisure time uses. The single developer approac these uses a known fact, whereas multi -developer h makes the approach doesn't know the total picture until the end. The multi -developer concept calls for more City staff, time and expertise that has been attempts. demonstrated in past Z- Questions that the Council should be asked. 1. During the bidding process many came in. , how many bids went out and how 2. Was the City advised by Old Capital that the financial down wasn't feasible. Yes, twice. take 3- Is there a need for a bus system in the CBD without a strong CBD 4• Does the 1969 plan provide for parking? Was that done on land that would come off the tax rolls. Over 3. 0 0 5. Does the City have the money and time to build a staff that could efficiently and effectively market the land and over see construction. 6. Prompt action would probably allow for usage of HDCA funds under the original guide lines. 7. Public improvement to the Sycamore Mall cost over 2h million dollars. What would be the cost for other strip developments. 8. How can the utility companies provide proper service without a plan. 9. The plaintiffs compare shopping facilities and parking cost in Cedar Rapids to Iowa City. Why should we lose that market share to Cedar Rapids. We need CBD improvements to be competitive and to try to ease the financial burden on the individual home owner. 10. The plaintiffs feel that it is bad to make a return on your investment, either as a storekeeper or as a developer. 11. To compete in the CBD against the Mall, you have to provide for a mix of pedestrian and auto traffic. Malls and strip developments are based on parking ... not selection. Interesting sideline facts 1. 15 parcels of land total 503,605 square feet at a cost of $2,225,835 or average cost of 4.42 a 6quarefoot was the price to Old Capital. The appraisals for the land in 1969 was 1.2 million. The City need one million more to clear its share with HUD. Has cleared vacant land in an area with no development in the past six years increased a million dollars in value? 2. A national firm was planning to relocate their national offices. Iowa City was under strong consideration because of the 1969 plan and the promise of a strong shopping area in conjunction with the University -' facilities. The firm would have employed about 200 to 300 people. 3. Urban renewal displaced a little over 400 living quarters. The new Post Office displaced just over 600. Under the newly proposed housing inspection code..none of those would be fit for occupancy in 1976. 4. We know that new fire rates resulted from improvements done on Washington Street. In days of rising operating cost. -this does help. 6. 7. Approximately 6 million dollars of caluation will returned to the taxable property rolls because of the not be about 217 court decision. That this year, ,000 of taxes payable in 1979ou1d represent The prime tenant in Plaza Centre One signed a lease based on the 1969 total plan. to continue unless paragraphs One could easily see reluctance were fulfilled. 1, 2, and 3 on page one A major financial instituti Pians to build twion in Iowa City has developed junked, needless tce. Each time, the plans had to be o say they are disappointed. Many stores are opening at capacity expansion only in the CBD area. and are looking for, 9• If the 1969 plan in abandoned, would a new Environmental Impact study be needed? July 14, 1965 Council doubles city's proposed renewal area by adding second project between Iowa Riv(r and Van south toathe tracks Buren, running January, 1966 LWV consensus supporting urban renewal October 19 Meeting in City High Auditorium for public presentation of renewal plan December 6 LWV letter to Council "challenges" council to 0 urban renewal g ahead with March 7, 1967 Resolution authorizing filing of Loan in two sections: and Grant Application Phase A 13 block area between Washington and Court and between Linn. Street and University of Iowa Phase B 10 block area one block either way from Gilbert running between Court Street August 17 and Iowa Avenue Council sets September 12 for public hearin on Proposal B $16 million September 6 Iowa Supreme Court refused to order delay in September 12 hearing as was requested by 7 Iowa City businessmen September 8 Twenty businessmen asked Johnson County District Court to stop Council from further urban renewal action September 12 District Court issues temporary injunction halting all work on urban renewal March 23, 1968 District Court issues permanent injunction against working on urban renewal projects due to conflict of interest by Council members 0 0 -2- March 11, 1969 State Supreme Court upholds District Court and any further urban renewal work is prohibited April 4 Swift state legislative action amends conflict of interest section of Iowa urban renewal law which allows Iowa City to resume urban renewal planning April 29 Councilmen and city officials met with federal officials in Chicago to discuss possibilities of again pursuing urban renewal May 6 Council again voted to go ahead with federal urban renewal August 11 HUD approved procedures to reactivate city's renewal plans September 2 Council approved 19 resolutions covering original urban proposal and set public hearing for September 23 September 23 Public Hearing held at 7:30 p.m. in City High Auditorium with nearly 600 attending; pro and con views presented October 2 Council passed resolution approving urban renewal plan and feasibility of relocation October 10 Resubmission of Part II Loan & Grant Application May 26, 1970 News Conference - Representative Fred Schwengel announces federal grant of $9,538,605 for R-14 Urban Renewal Project $9,104,547 __ Project costs 434,058 -- Relocation costs July 27 Received Loan and Capital Grant contract (dated July 22, 1970) September 16 Signed contract for Loan and Grant received (dated September 2, 1970) August S0, 1971 First property acquisition March, 1973 One developer concept for urban renewal area endorsed by Council March 23 R-18 project abandoned because of freeze on federal funds July 10 Advertise land for sale for redevelopment August 8 Amendatory Contract for Loan and Grant (reducing scope of project) submitted to HUD August 9 Draft Environmental Impact Statement on R-14 Project released by HUD October 18 Received one proposal for redevelopment from Old Capitol Business Center Company 0 RESOURCE DATA 1. Major Streets and Parking, 1960, Harlan, Barthalomew 2. Iowa City in the Future, 1960, Robert Wheeler 3. Comprehensive City Plan, 1961, Barthalomew and Asset 4. Retail Trading Analysis of Iowa City, 1962, Bureau of -- Business and Economic Research, University of Iowa 5. Location and Economic Feasibility of a Major Parking Facility for Downtown, 1963, Powers and Willis 6. Iowa City Looks at its Future, 1964, Citizens Advisory Comm. 7. Associated Consultants Report, 1964 B. Iowa City Profile in Progress, 1964 National Association of Real Estate Board 9. City -University Urban -Renewal Project, 1967, City of Iowa City Staff 10. Parking, Problems, Possibilities and Programs, 1967, Iowa City Planning Dept. 11. Micro Analysis of East Side Central Area Traffic, 1974, DelEuw, Cather for Johnson County Regional Planning 12. There are reams of other reports that aren't listed G-t�7'K'/=i 0 0 5. Approximately 6 million dollars of caluation will not be returned to the taxable property rolls this year, because of the court decision. That would represent about 217,000 of taxes payable in 1979. 6. The prime tenant in Plaza Centre One signed a lease based on the 1969 total plan. one could easily see reluctance to continue unless paragraphs 1, 2, and 3 on page one were fulfilled. 7. A major financial institution in Iowa City has developed plans to build twice. Each time, the plans had to be junked, needless to say they are disappointed. 8. Many stores are opening at capacity and are looking for expansion only in the CBD area. 9. If the 1969 plan in abandoned, would a new Environmental Impact study be needed? 0 -2- Is March 11, 1969 State Supreme Court upholds District Court and any further urban renewal work is prohibited April 4 Swift state legislative action amends conflict of interest section of Iowa urban renewal law which allows Iowa City to resume urban renewal planning April 29 Councilmen and city officials met with federal officials in Chicago to discuss possibilities of again pursuing urban renewal May 6 Council again voted to go ahead with federal urban renewal August 11 HUD approved procedures to reactivate city's renewal plans September 2 Council approved 19 resolutions covering original urban Proposal and set public hearing for September 23 September 23 Public Hearing held at 7:30 p.m. in City Nigh Auditorium with nearly 600 attending? pro and con views presented October 2 Council passed resolution approving urban renewal plan and feasibility of relocation October 10 Resubmission of Part II Loan & Grant Application May 26, 1970 News Conference - Representative Fred Schwengel announces federal grant of $9,538,605 for R-14 Urban Renewal Project $9,104,547 -_ Project costs 434,058 __ Relocation costs July 27 Received Loan and Capital Grant contract (dated July 22, 1970) September 16 Signed contract for Loan and Grant received (dated September 2, 1970) August S0, 1971 First property acquisition March, 1973 One developer concept for urban renewal area endorsed by Council March 23 R-18 project abandoned because of freeze on federal funds July 10 Advertise land for sale for redevelopment August 8 Amendatory Contract for Loan and Grant (reducing scope of project) submitted to HUD August 9 Draft Environmental Impact Statement on R-14 Project released by HUD October 18 Received one proposal for redevelopment from Old Capitol Business Center Company 0 • BR[F.F CHRONOLOGY OF URBAN RENEWAL IN I014A CITY December 18, 1963 City Council asks federal government to certify Iowa City as eligible for federal planning money June 24, 1964 Federal certification for planning funds is granted September 17 Recommendation for resolution of necessity by Planning and Zoning Commission September 21 Resolution of necessity Resolution directingepassed by Council preparation of application for survey and planning funds from HHFA November 6 Planning consultant sees 20 - block area as urban renewal zone November 18 Council asks $172,000 in planning funds July 14, 1965 Council doubles city's proposed renewal area by adding second project between Iowa Riv(r and Van Buren, running south to the tracks January, 1966 LWV consensus supporting urban renewal October 19 Meeting in City High Auditorium for public presentation of renewal plan December 6 LWV letter to Council "challenges" council to go ahead with urban renewal March 7, 1967 Resolution authorizing filing of Loan and Grant Application in two sections: Phase A 13 block area between Washington and Court and between Linn Street and University of Iowa Phase B 10 block area one block either way from Gilbert running between Court Street and Iowa Avenue August 17 Council sets September 12 for public hearing on $16 million Proposal September 6 Iowa Supreme Court refused to order delay in September 12 hearing as was requested by 7 Iowa City businessmen September 8 Twentybusin ssmen asked Johnson County District Court to stop Council from further urban renewal action September 12 District Court issues temporary :injunction halting all work on urban renewal March 23, 1968 District Court issues permanent injunction against working on urban renewal projects due to conflict of interest by Council members n U RESOURCE DATA 9 1. Major Streets and Parking, 1960, Harlan, Barthalomew 2. Iowa City in the Future, 1960, Robert Wheeler 3. Comprehensive City Plan, 1961, Barthalomew and Asset 4. Retail Trading Analysis of Iowa City, 1962, Bureau of -- -• Business and Economic Research, University of Iowa 5. Location and Economic Feasibility of a Major Parking Facility for Downtown, 1963, Powers and Willis 6. Iowa City Looks at its Future, 1964, Citizens Advisory Comm. 7. Associated Consultants Report, 1964 B. Iowa City Profile in Progress, 1964 National Association of Real Estate Board 9. City -University Urban -Renewal Project, 1967, City of Iowa City Staff 10. Parking, Problems, Possibilities and Programs, 1967, Iowa City Planning Dept. 11. Micro Analysis of East Side Central Area Traffic, 1974, DelEuw, Cather for Johnson County Regional Planning 12. There are reams of other reports that aren't listed 0 Door-to-door bus service baits in Acnes By a�pgF WRITER Residents here who depended on the bus to gel to work, the shopping centers or the local medical clinic were looking for other means of trans - lion Wednesday. ots Hanks The city's highly ESM touted efforts to pro - '0O vide residents with a form of "door-to-door" bus least service came to an abrupt bait — tem- porarily — Tuesday night when the City Council voted 5 -to -1 to terminate an agreement with the Ames Taxi Co. to • continue operating the service, called Cy -Ride. The owner of the taxi firm, Lowell Deaton, had informed the council ear- - lier that even with the city-s trying$ to his firm was going brokegupposedto bethe the ultimate in pa-ssen ger convenience. The council city of federal id they hope to t ke advantage Howeverand , becauuseaid to o restart service. the paper work involved, It would be at least several weeks before the buses could roll again assuming the money is available. The city does not have funds to take over the bus service. This means for the time being, at least, the etransportation.ityOfeswill be without any public Creat Fanfare Deaton Indicated that his Ames Taxi Co. may call It quits, too. In a few more days. Cy -Ride was inaugurated fromi fanfare last January the bus services found In moat com- munities in that Instead of picking up passengers at designated stops. 0 dents here "dialed a bus." fRID s 15- The idea was that the sya Ipassenger minibuses would pick up the passenger where he called from and drop him oft at the "front door- of his i destination. But, city officials werlaintslf om from the start with comp passengers who said they had stier they wait hours for the bus to show up 'Pend too phoned in, or they had to much time riding - menet B I while other passengers off picked up or dropped �I Bought Minibuses The city used $187,000 in federal Ii revenue-sharing funds to purchase five minibuses and for;'start-up' The city reclalined its I five bus from Ames Taxi Co. during eu night. The bus service was supposed to Ioperate on a "break-even" basis, but the city had been spending more than ;100 a day in recent months In subsi- dies. `0v 0 0 pad Je Iowa city transit MONTHLY REPORT For: _ May 1916 Date: June 14, 1976 Passengers: Present Month 89,509 Previous Year 87,510 % Chen a — 2.33 Year to Date 633,966 Previous Year 648',481 Chan e -2.2 Vehicle Miles: 44,050 40,048 10.0 229,315 212,357 8.0 Passengers per Mile: 2.0 2.2 2.8 3.1 PROJECTS: MAY 1. Plans for the 25,� fare and monthly pass were finalized. 2. "Project Independence" wrapped ur) with 700+ elementary students planning class trips on the buses. 3. A state transit assistance bill was approved at the end of the month. JUNE 1. Bus specifications and authorization to bid should be ready for council approval. 2. Transit Superintendent will attend Iowa Public Transit Association meeting June 3 and 4. 3. State transit assistance program will start to take shape. Iowa city transit DATQI June 16, 1976 TO: Neal Berlin, City Manager FROM: Dennis R. Kraft, Director of Community Development RE: May, 1976 Monthly Report Attached is the May, 1976 Monthly Report for the Department of Community Development. Significant program and personnel changes occurred during this pa•t month. The Housing Division report includes a detailed monthly summary of the types and numbers of inspections performed as well as a detailed report on the 39 mos; frequent infractions of the Iowa City Minimum (lousing Code. Personnel action in the (lousing Division during the month of Ma:• included the reinstatement of the Senior Housing Inspector by the Iowa City Civil Service Commission. In the Redevelopment Division, he Community Redevelopment Coordinator resigned effective 'lay 10th. A Redevelopment Specialist was hired on a temporary basis for the purpose of carrying on the most pressing Urban Renewal activities. Other resignations within this Division during the month of May included those of Redevelopment Specialist, Maureen Sullivan, who left the employ of the City, and Clerk Typist, Vicki Brei, who became the Deputy City Clerk. Also during the month of May, Judge Carter of the Johnson County District Court issued a ruling which voided the Urban Renewal contract between the City and Old Capitol Associates. The impact of this decision was to halt construction on the Plaza Centre One building, and to cau:c all other Urban Renewal disposition activities to be halted, with the exception of the land that was to be conveyed to the University of Iowa and four other small parcels which were not a part of the Old Capitol contract. As a result of the District Court decision, the Federal Department of Housing and Urban Development indicated that they were strongly considering invoking the provisions of Section 112A of the Housing and Community Development Act of 1974, if the City did not voluntarily purchase land from the Urban Renewal Project with additional Community Development Block Grant funds. A detailed report of the activities of each Division in the Department follows. s � - MAY. 1!76 MONTULY RIIPORT DEPAIi'rDIIiNT OR COPPIUNITY DEVELOPMENT (lousing Division - Leased f : Section GOALS: 1. 1119 UNITS SECTION 8, EXISTING UNITS, 160 SECTION 23 UNITS. Convert 49 uniof Section 23 to Section 8 units and obtain approval of 1()(t)'. dditional units• Continue to provide assistance to families under Section 23 reducing the number Of units to 160 by June 30, 1976. II. 126 UNITS NEW CONSTRUCTION UNDER SECTION Q. To assist in providing additional housing units for low income elderly and handicapped persons. III. HOUSING ASSISTANCE PLAN. Provide input to the Housing Assistance Plan for the second year HCDA application. V. HOUSING CObtNfISSION. Provide administrative support to the Iowa City Housing Commission. V1. ENFORCE MINIMUM HOUSING CODE. In the interest of public health and safety increase efforts and revise plan for enforcing the City's Minimum (lousing Code. MY ACTIVITY: I. During h1ay, seven units were brought into the Section 8 Program including two conversions from Section 23. Five units were lost to the Section 23 Program and no units were lost to Section 8. One hundred fifty-two units were tinder lease in the Section 23 Program as of .June 1, 1976. Forty-six units were under lease in the Section 8 Program as of June 1, 1976. Total number of units under lease, both programs, 198. Twenty-nine annual, initial, or final inspections were carried out. Twenty-six applications for the Section 8 Program were received. Ten applications were approved, the remaining are being processed. Representatives from the Des Moines Office of HUD performed a routine inspection of the Section 8 Program on: May 20 and 21. While the written report has not been received, verbal comments from the representatives indicate no serious deficiencies were noted. 0 -2- 0 II. sixty-four units of housing for the elderly proposed by Midstates. No activity. III. (lousing Ass ist:lice plan. Completed. IV. The (lousing Commission met on May 19, 1976. 'file regularly scheduled meeting of May S was canceled. Significant actions taken at the May 19th meeting were: 1) Election of officers. It was recommended that the same officers currently serving (Branson as Chairperson, Fountain as Vice -chairperson) be appointed to serve for another year. Motion passed unanimously. 2) Recommendation by the Commission that the (loosing Coordinator continue work on procedures and ('unctions necessary as Managing Agent for Midstates. The Public meeting on the revised Minimum Housing Standards was hold on Mny 11th. The Standards were returned to the Commission for additional input and consideration. V. See attached. PROJECTED ACTIVITY: I. During .lune, Council action will be required on t:he revised contracts for both Section 7.3 and Section 8. Every effort will be expended to extend leases on those Section 23 units scheduled for termination and to obtain additional units under Section 8. The low Fair Market Rent hampers this program. Two members of the Housing Division will attend a three day seminar on the Section 8 Existing Housing Program in an effort to obtain additional information and guidance which will improve program effectiveness. II. Final plans for the LSRD for Mid::tates will be before Council on .tune 8th. Detailed drawings are due at HUD June 10, 1976. Mr. Jacobsen will be in low," City on June 9, and additional work will be Placed on the Management Contract. This could be ready for Council during .lune. III. Completed. IV. Regular meetings are scheduled for June 2 and June 16, with at least two special meetings on tho Minimum Housing Code. V. [lousing Section. Six hundred fifty units, in 150 structures will be inspected in the month of June. A Kirkwood Environmental Intern will be serving with us. Our in-service education for the month of June will consist of a rehabilitation discussion led by Bruce Burke, and Ralph Taylor, Plumbing Inspector, on Fundamentals of Plumbing Inspection. 0 -3- - Minimum (lousing Section - • Monthly report for the month of MAY , 1976- 1. Number of dwelling units inspected 721_ a. Single family, owner occupied (structures) 46 b. Single family, rental (structures) —15— C. 5— C. Duplex, structures 44 units B -9— d. Multiple family dwellings, units —3 -9- 2. Number of structures inspected 166 a. Number of rental structures inspected _113 b. Owner occupied structures inspected _ 53— C. Inspections as a result of complaint calls received 14r d. Initial inspections _104 C. Reinspections_ 35 f. Request inspections _13_ 3. Corrective letters issued 150 4. Newly discovered dwelling units/rooming units —6- 5- Structures issued Compliance Certificates this month. 42__ a. These structures contained dwelling units/ rooming units 144 6. Structures which are new construction which have been issued a Compliance Certificate 9__ a. These structures contained dwelling units/ rooming units. 42 _ I D Doors Fit ---9.30.6. I4 Bath Floors. 2-0 9.30.6.11 Outside 6 9.30.6.K Outside Bldg. and Eaves =9.30.7.A Floor Space 1 9.30.7.A Bedroom Size 0 9.30.7.0 Path of- Bath 0 9.30.7.D Ceiling 2 9.30.7.E'Cellar 1 9.30.7.17.1 Basement Dampness 0 _9.30.7.17.2 Basement Window 0 9.30.7.F.5A Basement Height -9.30.8.A Shared Area --T-9-30-8.E Insects 6-9-30.9.H Cubic Feet T -'Y --9.30.9.J Fire Ext. 1-0-9.30.9.L Furnace Isolation —Section 1.5 Iowa State Fire One Hour Fire Door 0 413 46 Rules and Regulations State Code of I0wa-3rd Floor Dwellings =(T—Uniform Fire Code Section 75.112 -Sources of Ignition Uniform Fire Code Section 27.201 -Accumulation of Waste Material 4- • Defic"ienci.es MCNIMUM ROUSING f;'CANDARDS noted during the Month of _ Paragraph Referral— MaY 1976 b Y 0 7.06 Nuisances 9.30.4.13 59 Rat-hroom 9.30.4.1 - -9.30.4.1, Plumbing -9 Rot Water 30.4. R -rl-9 30. Egress . 4. U --9.30.5.A Ilandra.i 1.s _6 1.0£ Window 7 9.30.5.0 Bath Vent 9.30.5.D �1 9.30.5.E Ball Lights Outlets 9.30.5.E -T --9.30.5.E Electric Main Service 0 9.30.5.E -9 Heat TQ - 30 . 5.G Vents & Air 30 9.30.5.I P&T Extension 2 9.30.5.1 -12-9-30.5 P&T Valve ) Screens 97 9.30.6.A Walls, Floors, Windows T-9 30 6 D Doors Fit ---9.30.6. I4 Bath Floors. 2-0 9.30.6.11 Outside 6 9.30.6.K Outside Bldg. and Eaves =9.30.7.A Floor Space 1 9.30.7.A Bedroom Size 0 9.30.7.0 Path of- Bath 0 9.30.7.D Ceiling 2 9.30.7.E'Cellar 1 9.30.7.17.1 Basement Dampness 0 _9.30.7.17.2 Basement Window 0 9.30.7.F.5A Basement Height -9.30.8.A Shared Area --T-9-30-8.E Insects 6-9-30.9.H Cubic Feet T -'Y --9.30.9.J Fire Ext. 1-0-9.30.9.L Furnace Isolation —Section 1.5 Iowa State Fire One Hour Fire Door 0 413 46 Rules and Regulations State Code of I0wa-3rd Floor Dwellings =(T—Uniform Fire Code Section 75.112 -Sources of Ignition Uniform Fire Code Section 27.201 -Accumulation of Waste Material Urban Redevelopment Division - 11CDA - CDBG Section - COALS: I. Program Administration - listabli:;h detailed administrative procedures to govern all projects funded with block grant monies. 2. Accounting - Establish sound accounting procedures enabling monthly reports of (ICDA-CDBG funds. 3. Personnel - Project personnel needs within the Division and follow necessary procedures to hire qualified personnel. MAY ACTIVITIES: 1. In preparation for the IIUD project monitoring visit, each person in charge of a program funded through HCDA-CDBG prepared a report in response to initial administration procedures set forth. 2. A draft HCDA-CDBG budget was prepared to guide the Finance Department: in setting up account numbers to allocate the federal funds into the City's accounting system. 3. In light of litigation the (ICDA-CDBG budget was amended to consider the purchase of Urban Renewal properties. 4. Resignations were received from the Urban Redevelopment Coordinator and the Division's Clerk Typist. 5. Program activities are discussed on the attached sheet. PRO-JECTED JUNG ACTIVITIES: 1. Administrative guidelines must be defined and all programs must conform. (For example: Environment Review requirements must be presented and all project directors must meet the requirements.) 2. The amended (ICDA-CDBG applications must be prepared and submitted to Council and HUD. 3. Individual program activities should continue as scheduled (see attached form). 4. Finance Department should begin setting up HCDA accounts. 5. Personnel projections must be made and job descriptions prepared. HCDA-CDBG ACTIVITIES REPORT 1. Comprehensive Plan 2. Neighborhood Rehabilitation n LJ 3. Code Enforcement 4. Axchitectural Barrier Removal S. Neighborhood Center ® Ralston Creek Flood Control 7. Park Improvements and Additions S. Urban Renewal Project 9. Committee on CW.Mmity Needs IMAY ACTIVITIES See Planning Division Activities 1) A work schedule was prepared which identifies projects to be completed before the program can be implemented 2) A meeting involving Council, CCN, Hsg. Comm., and staff was held to set guidelines for the program's focus. See Housing Division Activities Two-thirds of the report has been completed in final draft. No activities planned or carried out. See Public Works Activities See Parks and Recreation Activities See Urban Renewal Activities A subcommittee began planning a mass media communications system to channel information about }ICDA activities to the public. 10. Riverfront Acvisition See Planning Division Activities Prepared 6-10-76 D JUNE ACTIVITIES 1) Council is advised to hire a consultant. An interview should be set up for an informal council session. 2) Staffing needs mist be de- fined and positions advertized. Alien the con- sultant begins work, there must be ample staff to develop the program, to best utilize his time and our money. The final draft should be distributed to ccN and Council for approval. In June CCN will be reorganizing their program ideas, in light of current urban renewal budgeting demands. • -7- IlrbanItcdevcl�mumt Division - Urban Renewal Section - COALS: I Prepare project management documents and procedures consistent with current LPA intentions and MID requirements. II. Carry out a program of land marketing consistent with LPA decisions and Iil1D requirements. MAY ACTIVITIES: 1. One full-time, temporary, Redevelopment Specialist was hired to assist with Urban Renewal program operations. II. Action has been taken on four pending relocation claims; including one final settlement; and three claims on which additional action will be required. III. Modular property management responsibilities have been acted upon as problem notifications have occurred. IV. Preliminary grant-in-aid information was provided to the State Historical Department, pertaining; to the College Block Building, for inclusion in their application for a federal grant for historic preservation. V. In response to the court decision handed down, required land marketing procedures have been researched and documented. V t. The former Urban Redevelopment Specialist, Maureen Sullivan, resigned. PROJECTED ACTIVITIES: I. The Urban Renewal Plan must be reviewed to insure that it is con- sistent with current City intentions. II. Contract action and conveyance of parcels 95-2 and 92-1 to the University must be completed. II1. Land marketing procedures must bi.• finalized so that marketing of all LPA owned lands can proceed. IV. The [IUD requirements for updating the land marketing schedule and the project budget must now be wt. GOALS: • -9- - Advance Planning - 0 COMPREHENSIVE PLAN -- to continue work in five main areas of the Comprehensive Plan with major work occurring in Tree Planting Plan and Ordinance, Sidewalk Report and Plan, Population Report, Land Use analysis and base mapping; and to hold a public meeting on the Tree Planting Plan and Ordinance. II. FINKBINE BIKEWAY -- to submit a grant application for the Finkbine Bikeway on behalf of the University of Iowa, Coralville, Project GREEN and the City. Ill. RIVERFRONT COMMISSION -- to continue staff assistance to the Riverfront Commission and to receive Phase III - Southern Corridor Design from Stanley Consultants. IV. PERSONNEL -- to fill the vacant planner position. MAY ACTIVITY: L Rork in Comprehensive Planning continued as follows: Base Mapping -- proceeding on schedule. Population Report -- proceeding four weeks behind schedule due to the three week absence (because of illness) of our Clerk Typist, recalculations on the Housing Assistance Plan as required by HUD, and union negotiating sessions. Land Use Report -- proceeding on schedule. Environmental Reports -- proceeding on schedule. (Transportation) Walkway Report and Plan and Bikeways Report and Plan -- Walkways Report and Plan was completed four weeks ahead of schedule. Bikeways Report and Plan is proceeding on schedule. Tree Planting Plan and Ordinance -- a public meeting, was held on May 12, 1976 and on May 27, 1976, the Comprehensive Plan Coordinating Committee forwarded the Tree Planting Plan and Ordinance to the Planning and Zoning Commission. II. The application for the Finkb.inc Bikeway was completed, approved and submitted to the Iowa Department of Transportation in May. III. Staff assistance to the Riverfront Commission continued with the Phase III Report from Stanley received. IV. The vacant planner position was not filled. PROJECTED ACTIVITY: I. Comprehensive Plan activities should continue to proceed on or near schedule. It is expected that during June and July the Bikeways Report and Plan, Walkway-; Report and Plan and the Tree EHIM Planting Plan and Ordinance will be presented to Council for adoption. Additionally, the bast: maps and the Population Report will he completed in June. the RiVCrfront Commis he preparation of I1. Continuing de assistance to opportunities of the Iowa work on river corridor lanotcntinlstand ppd the preparation a leaflet describing p River. III. nt planner position can be filled this It is hoped that the vaca summer. UFTAII,ED RFPORT OF CO%IPREIIi?NS1VE PLANNINi ACPIVIlann ing IN Division cat•ricd In May the Advance Planning Section ,.f the Plann on the following activities: preparing ble Base Mapping -- The Technical CitAssy co��tinuedphislworkfwhich nvolves '200' scale base maps o£ the City ustifi- research of subdivision plats and justification ed conflicting material. This activity is continuing as expected, however. more cation and verification of conflicting information is taking time than was expected. The Assistant Planner responsible for the preparation however,, Population - IiCDA Application), of the Population Report completed most of revisions_ necessary in the Housing ion absence of the Clerk/Typist due to illness for three weeks and union contract negotiating has somewhat delayed the report. Thepopulation projection is now complete as well as the :analysis of. the census information. re aration Land Use -- The Associate Planner re::ponsible for the pznd verifi is entirely dependent upon base of the land Use Report continues to work on the coding the measure - cation of land use. tactivity coding and calibrating mapping work. Work progressed ment techniques. Environment -- the Assistant Planner and Technicalroceedednwith stheirble for the preparation of the Environmentavegepors procce is as scheduled. work in soils analysis and ratings and ind Ordinance proceeded on schedule with which is lli0 The Tree Planting the documents prepared except the Iowa City'• Trete' its final stages. A public meeting on the 'Free I'lantinl, Plan and Ordinance was held and a revised plan and ordinance were prepared which was forwarded n the Planning and Zoning Commission by the Comprehensive Plan Coordinating Committee. _11_ 0 - Current Planning - MAY ACTIVITY: Staff' reports were prepared for an alley vacation request, a preliminary plat, a combined preliminary Planned Area Development plan and plat, a final plat, a final Large Scale Residential Development plan, and three variance requests. Work on procedures for the submittal, review and approval of rezoning applications, subdivisions, Large Scale Residential Developments, Large Scale Nonresidential Developments, Planned Area Developments, and vacation requests progressed and is near completion. The Planning and Zoning Commission is in the process of reviewing an ordinance revising the M1 and M12 Industrial Zones. PROJECTED ACTIVITY: No specific numeric objectives for subdivision plat review, rezoning application review, etc. are established due to the impossibility of predicting the number of submissions which will be filed. Upon completion of the Planning and Zoning Commission's review of the ordinance revising the M1 and M12 Industrial Zones, possibly either in June or July, a compendium of changes to the existing Zoning Code will be written. Revisions to an ordinance establishing an RM1i Mobile Home Residence Zone are underway and will be completed in July. Procedures for the submittal, review and approval of applications submitted for consideration by the City will be completed in .June. Also, work has commenced on an ordinance establishing new regulations for Planned Area Developments. ® 0 `OA\ CITY OF IOWA CITY DEPARTMENT OF PUBLIC WORKS MEMORANDUM DATE: June e. tg7F TO: I;eal Rerli.r., City Manager FROM: Richard J. Plastino, Director of Public Works RE: Monthly Retort for the Pionth of May ENGINEERING DIVISION The Washington Street Amenities Project is running very close to schedule, but no deliveries have been made of such products as the decorative brick, the benches and street lights. 'there has been no change in the Scott Blvd. Sanitary Sewer. Bruce Glasgow has information on various alternatives and to date, he has not responded. As mentioned last month, the College/Dubuque Mall work has been terminated and Bill Nowysz has been paid for his work through the date that work was suspended. As soon as it is definite that the project will not proceed in any fashion, hi.s contract will be cancelled. There is no change in the Waste Water Facilities Study being done by Vecstra and Kimm Consulting Engineers. ,rim Rrachtel, the Traffic Engineer, is currently preparing information to submit to the Iowa Department of Transportation concerning traffic projections at the intersection of First Avenue and Muscatine and on Muscatine Avenue. Engineering has held a pre -construction meeting with the Park Road Bridge contractor and it appears that construction ,-14 11 hegin some time during the week of June 7th. The West Park Lift Station plans and specifications are complete; however, we are awaiting final information from Iowa/T.11inois Gas and Electric. The Lime Sludge Study at the Water Plant is behind schedule and the consultant has asked for an extension of time. It is possible that EPA will delete the requirement to cease dumping water treatment wastes in the Iowa River; therefore, Lt would behoove the City not to move too quickly on this, anvI•ray. The Slurry Sea]. Contracts have been mailed to the contractor. page 2. Monthly Repor �,yay The mudjacking public hearing has of June. Specifications are about project. 0 been set for the 22nd 30% complete on this The public hearing has been set on the FY 77 Landfill. Project for June 29th. we are filling the latest excavation at a rapid rate due to the expected increase in solid waste generation during the summer months. The code violation problems with the University Lake Apartments have been resolved. IIf le have sent letters to the applicants for the vacant positions that we are not Civil Engineer and Engineering Technician to inform them thfilling the position until we to our appeal to thsee the outcome e State on the budget lid. The response to the building official position has been marginal and we plan on readvertising. TRAFFIC DIVISION The Traffic Operations Division was called out on 29 defective traffic signals and G street light outages, Two new street name signs mere installed and fifteen were replaced and 104 signs of other types were replaced. Street Painting and marking has started. We are awaiting a new shipment of paint- this week. The Divi -;ion replaced a signal pole knocked down by a motorist at the intcrsect.ion of Hc:y. yG, fl, and 4218. Two street lights nn Park Road were ren.laced. The street light re Dubuque and Iowaat ren] aced. that had been removed for construction was Signal poles and controller cabinets at five intersections were Painted. A sign for the animal shelter was replaced. Jin Brachtel and Tony Eushnir are continuing work on the .Model Traffic Ordinance and it should be ready for review by Council at the end of June. The `ull lens covers for the signals at Riverside Drive and River. Street have been installed. The signal 'riming on the Burlington Street signal system has been reset and traffic flow on Burlington Street has been greatly enhanced. More traffic counts are needed on t3urlington in order to allow setting of the controller. so that it operates on 50 second ane; 70 second cycles more of the eontime. At pr;t, it is operati.nq most of the day on an RO second page 3. Monthly Renor.,May cycle. REFUSE DIVISION The Refuse Division picked up 1,006 tons of solid waste during the month. yahours per ton averaged 1.58, Gordon Russell Excavating Company is building a new road at the landfill across a completed fill area. The present road into the excavation is too steep and disintegrates and becomes impassable during wet weather. We will be installing a fiberglass mesh fabric under the gravel of the new road in order to keep mud from pumping into the gravel and destroying the road. Interviews were held with three (3) applicants for the senior maintenance worker and Don Stoddard was selected, effective June 16th. Darrel Kuenster resigned his permanent Position. This means only one more permanent employee must leave by attrition to get us down to the personnel allocated in the FY 77 budget. POLLUTION CONTROL DIVISION The crews cleaned approximately 4,000 feet of sanitary sewer. 136 manhours were spent working on the lift stations. There o:er(- five 15) sewer stoppages of which three (3) were City renponsi.bi..lity. The crews mowed the MRC lagoon. Pleasant Valley Nursery planted 20 evergreen trees that were I:illed by the drought last summer. Three peonle have been hired as summer help. The hump motor at the Ilawkeye Lift Station will have to be removed and certain parts installed. LODE ENFORCEMENT 55 building pernits were issued; 7 mechanical. permits, 30 Plumbing nermits and 72 electrical permits. Total Permit fees were $7,657. There are presently 540 active building r.ermits, 341 active plumbing permits, 444 active electrical permits and 7.69 active mechanical permits. STREET DIVISION 20 utility cuts were natc:hed and 1,608 lineal feet- of curb were replaced in preparation for hot mix overlay and slurry seal. 348 square feet of sidewalk were replaced and 157 manhours were spent moi,,ing weeds. 117 of this total was dome at the airport. page • _ - Monthly y RenortZ2aY 5 storm i.ntak^_s were cleared. ecialist i:oured the street sweeper factory streets were swept. The Public Works Director- 395 irec or•395 miles of streets and Fquinment Sp riot to writing specifications for a at Flgin, Illinois p e and vaccuum new street- sweeper* Bothewed the mechancial. type tyre s:acepers were viewed. 6 drop curbs were in!h Sycdnlore streetand 2 - were repaired on South Sy Creors replaced approximately 90 square yards of deteriorating concrete slab. e in The major part of the Street Div adlofsthe mhx slurrysealande�u months will be spent working ahe asphalt overlay contractors. WATER DSVISIUN Ihe]'e wr'1'e no water main }breaks during the month. 2,? -00 f.cet of new six inch (6") and eight inch (al)water ;Hain o:as laid. Pour (4) fire hydrants were installed and one (1) '+'as replaced. 134 out:-ide readers were ;nstalled. 43 new rncters were set. The street hydrant nairlti.ng program is continuing and the crew i.s finished flushing the hydrants. r,rlt�lrarlrr Divtsior_ work tut,colll,';a'.or' completed ands badeengineewas removvedafoombus . .1d th�� re -built !;pare engine installed. Two trans - rhe front brakes were -C-built and two transmissions were installed. ;rare ran,,In i neois usandcl;rakebushings installed. rc�lacrd on M nl,r housings were re -built: one water pump was ,,.ven l,rls ]i condiBoning sy:;tems were serviced and re -charge . -c» 1P fuel inject:')rs were re -built; and one bus r _._bll -c -bpi l.t. at 9";e hy.l 1.-nnl irk liitl c- }]uc}:et wnlsni3roughtc Lohthec` lalop tloe bearrclfill. -aic+iltrnr•l and �•%clr?ed. A new hood was installed on the end and all lights on the loader were YePhree oYrjobs doneon 1 •. akc° jo`.-s :: re clone on trh car waand s replaced and the tr.ans- cars. A flvwheel on a police 111ission resealed- QIty of Iowa city* MEMORANDUM DAT11 June 4, 1976 TO: Dennis E. Showalter, Director of Parks 6 Recreation j► FROM: Billie Hauber, Superintendent of Cemetery -Forestry 4 RE: May Monthly Report I. Operational A. Interments - 1 welfare 6 standard $495.00 B. Lots sold - 1 $110.00 $605.00 Total C. St. Joseph's Cemetery has acquired their own digging equipment. II. Maintenance (not including budgeted projects) A. Forestry (inside Cemetery) - 26 hours B. Forestry (outside Cemetery) - 26.5 hours C. Cemetery (general grounds maintenance) - 578.5 hours D. Cemetery (general shop and office repair) - 2 hours. E. Preventative maintenance and repairs (vehicles and mowers) - 30.5 hours F. Lot locations, sales, and related records - 14.5 hours G. Outside mowing - 70.5 hours H. Funeral time - 88.75 hours III. Goals for FY 76 A. Council acceptance of revised Cemetery Ordinance - no action. B. Upgrading of existing facilities - work continuing on Cemetery records. C. Repair of supportive walls and entrance banks - planned but no action. D. Legal establishment of north lot line - Engineers not yet available. IV. Contracts and Specifications A. Trimming 1. Street Tree Contract - on schedule (Noel). 2. Parks Tree Contract - underway (Breeden). B. Stump grinding in Parks - started (Noel). C. Street Tree Planting Contract completed - first and second inspections made. • • 0 Cemetery -Forestry Division May Monthly Report Page 2 D. Nursery Services Contracts awarded in early May (April 29 opening), 1• Contracts awarded to: Pleasant Valley - $2,079 - local Noel's - $866 - local Green Thumb - $418,70 - Cedar Rapids 2. Areas - Northeast Park ,BWillow aCreekeed Park,$Vi8la Park, South Hollywood Manor Park, College Green Park, Chauncey Swan Park, Pollution Control plant, Oakland Cemetery. a. Replacement plantings at Chauncey Swan were in an effort to induce people to use walks rather than cutting through the landscaping. b. Plantings at Oakland were to attempt to reduce vehicular traffic over a new seeded, future development. C. Plantings at College Green were to eliminate necessary mowing of steep banks and a gift of a Pin Oak from L. Moeller's. d. Pollution Control plant's landscaping will be covered by Public Works' monthly report. e. All other plantings were park development projects. E. Washington Street Contract - continues. V. Special - Crew A. Weeded berms on Clinton -Dubuque - 27 hours. B. [deed control - Recreation Center and Police Department - 3 hours. C. Preparation of flower bed at Fire Station Park - 8 hours. VI. Special - Superintendent /ef A. House move preparation - 2 hours. B. Two visiting groups - West High and Robert Lucas Schools. C. Complaints solved: Traffic Engineering - 1 Finance - 1 Forestry - 9 ReWtion Divi!:ion Report for May 6 6 Bob L( -e, Superintendent June 9, 1976 I. Accomplishments. A. Administration and Facility 1. Registration for classes :In crafts, tennis and swimming along with park shelter and tennis court reservations and season swim tag sales occupied considerable staff time. 2. Mercer and City Park swimming pools readied for opening and opened on May 29 for the season. Water losses at City Park caused concern and checks were made in an attempt to isolate the leak. Although we are still losing home water, the leak does not appear to lie'nny worse than in previous years. After the pool is closed in September, a major inspection will be necessary to find the source of the Leaks. A major leak in the Mercer Park wading pool has been repaired. 3. A full page ad listing program possibilities was printed in the paper and several compliments have been received. 4. The Center (excluding pool) is closed weekends beginning May 22 for the summer. 5. Three basic program fliers were completed and circulated (copies attached). B. Projects for Special Populations Involvement. I. A special awards program was held for the Saturday handicapped swim program which was quite successful and enjoyable for parents and participants alike. The program will be resumed in June although we are having difficulty lining up volunteers. 2. A flower arranging workshop was held for the elderly on May 21 with small atti:ndance. 3. Routine spring programs terminated with new emphasis now placed on a summer schedule of activities fitting into the schedules of other agencies. Our staff met with representatives from Systems Unlimited, Johnson County Social Services (Flo Stockman), Hospital School and Nelson Development Center to determine needs for summer and coordination of effort:; for service. Our ;summer plans were thus formulated (see white brochure). C. Physical Activities. I. Colf leago e started at FiukbLne for 10 men. 2. Babe Ruth draft was held nn May 1 and play began May 25. 3. Double paddleb.ill tournament completed on May 2. 4. Thirty teams in 3 mens sill pitch softball Leagues and 11 teams in 1 womens fast pitch softball league began play at Happy Hollow and Mercer Parks on May 10, 1976. Oary Ilen n• Edr�wnn rcl llnullon, AIR \ 262 BlaA S,rink Circle Iowa Citi•, Town 523,10 May 15, 1976 Mayer Mary Neuhauser City Council Iowa City, Iowa Dear Mary: We believe it is urgent that the City Council support the orderly process of the unified one - developer plan for completing the urban renewal project. For the Council to take on the selling of each parcel seps:rately would take a long time, and is likely to be a disaster. We have seen some excellent shopping centers In the U.S. similar to Iowa City's plan, and they are a great asset to the community and area. Let's get on with it, and get this unused property back on the tax rolls immediately. Sincerely, >� Dr. fi d Firs. Henry E. Hamilton (((JJJ MAY 1 71976 LL, ABBIE STOLFUS CITY CLERK I V L June 17, 1976 Dr. and Mrs. Henry E. Hamilton 262 Black Springs Circle Iowa City, Iowa 52230 Dear Dr. and Mrs. Hamilton: Thank you for your letter surmorting the one -developer plan for urban renewal. The City Council tifill be discussing the urban renewal project at the inEorral meeting an June 21 at 1:30 P.M. in the Civic Center Conference Room. If you have any additional questions or comments, please feel free to contact me again. Sincerely yours, Neal C. Berlin City Manager 1s cc: City Clerk 51 J a